Department of Sustainability, Environment, Water ...environment.gov.au/.../files/annual-report-2011-2012.docx · Web viewDepartment of Sustainability, Environment, Water, Population

Department of Sustainability, Environment, Water, Population and Communities

Annual Report 2011–12Address: Main Office: John Gorton Building, King Edward Terrace, Parkes ACT 2600Mail: GPO Box 787 Canberra ACT 2601Internet: www.environment.gov.auPhone: 02 6274 1111Fax: 02 6274 1666

For the purpose of citation, the PDF version of Department of Sustainability, Environment, Water, Population and Communities Annual Report 2011-12 available from http://www.environment.gov.au/about/publications/annual-report/11-12/index.html is to be considered the official version.

© Commonwealth of Australia 2012

ISSN 1441-9335

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Contents Letter of transmittal Guide to the annual report Executive summary

o Secretary’s reviewo Department overview, structure and outcome o Summary of financial performance

Outcome 1: Biodiversity and ecosystems o Programs 1.1–1o Legislation reporting: o Natural Heritage Trust of Australia Act 1997

Outcome 2: Sustainable population and communities o Programs 2.1 & 2.3o Legislation reporting:

Product Stewardship Act 2011 Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 Hazardous Waste (Regulation of Exports and Imports) Act 1989 Fuel Quality Standards Act 2000 Product Stewardship (Oil) Act 2000

Outcome 3: Antarctica o Program 3

Outcome 4: Sustainable water o Program 4o Legislation reporting:

Water Efficiency Labelling and Standards Act 2005 Commonwealth Environmental Water Annual Report 2011–12

Outcome 5: Environment protection and heritage conservation o Programs 5.1 & 5.2o Environment Protection and Biodiversity Conservation Act 1999

Corporate Outcome: Sustainable performance Corporate governance

o External scrutinyo Environmental sustainability and performanceo Human rightso Human resourceso Stakeholder relationso International policy adviceo Procuremento Economic indicatorso Financial performanceo Financial position

Appendices o Workforce profileo Occupational health and safetyo Grants programso Advertising and marketing expenditureo Freedom of Informationo Corrections to material errors in the 2010–11 annual reporto Global reporting initiativeo Agency resources statemento Expenses for outcomes

Financial statements Glossary

List of requirements Index

Letter of transmittalThe Hon Tony Burke MPMinister for Sustainability, Environment, Water, Population and CommunitiesParliament House CANBERRA ACT 2600

Dear Minister

I am pleased to present you with the annual report of the Department of Sustainability, Environment, Water, Population and Communities for the financial year ended 30 June 2012. The report was prepared in accordance with the requirements set out in section 63 of the Public Service Act 1999. Subsection 63(1) of the Public Service Act 1999 requires you to lay a copy of this annual report before each House of the Parliament on or before 31 October 2012.

In addition, the annual report must be tabled in each House of the Parliament within 15 sitting days after the day on which you receive it because it contains other annual reports about the Acts the department administers, including the annual report of the Commonwealth Environmental Water Holder, a requirement under the Water Act 2007.

I certify that this annual report has been prepared in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies for 2011–12 as required by subsection 63(2) of the Act.

Yours sincerely

Dr Paul Grimes Secretary9 October 2012

Guide to the annual report

Structure

The Department of Sustainability, Environment, Water, Population and Communities Annual Report 2011–12 has been prepared in accordance with the Requirements for annual reports for departments, executive agencies and FMA Act bodies, as approved by the Joint Committee of Public Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999. This report is presented in four sections as outlined below.

Executive summary

This section provides:

a review by the Secretary of the 2011–12 year an overview of the portfolio structure a summary of the department’s financial performance.

Report on performance by outcome

This section contains five chapters that detail the department’s activities, achievements and performance during the year against the five outcomes as set down in the Portfolio Budget Statements 2011–12. These outcomes are:

Outcome 1: Biodiversity and ecosystems Outcome 2: Sustainable population and communities Outcome 3: Antarctica Outcome 4: Sustainable water Outcome 5: Environmental protection and heritage conservation.

Legislation annual reports are included with the Outcome 1, 2, 4 and 5 chapters. Some Acts that the department administers require the department or minister to provide annual reports on their operation to the Parliament. This report details the operation of the eight Acts the department administers that do not report separately, focusing on how the statutory requirements of the Acts were met during the reporting year and how the Acts were administered. The Acts covered are:

Environment Protection and Biodiversity Conservation Act 1999 Hazardous Waste (Regulation of Exports and Imports) Act 1989 Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 Product Stewardship (Oil) Act 2000 Fuel Quality Standards Act 2000 Natural Heritage Trust of Australia Act 1997 Water Efficiency Labelling and Standards Act 2005 Water Act 2007.

The department provides separate annual reports to the parliament for the following legislation:

Environment Protection (Alligator Rivers Region) Act 1978 National Environment Protection Council Act 1994 Wet Tropics of Queensland World Heritage Area Conservation Act 1994.

A sixth chapter covers our corporate activities as outlined in the department’s strategic plan. It details the department’s effectiveness in managing the corporate governance, workforce planning, financial framework, stakeholder management and environmental performance. This outcome is:

Corporate Outcome: sustainable performance.

Financial statements

This section contains the department’s audited financial statements for the year ended 30 June 2012.

Glossary, list of requirements and index

A glossary of terms and shortened forms, a list of requirements for locating mandatory and suggested information and an alphabetic index are included.

Further information

For further information concerning this annual Report contact:

Assistant Secretary, Strategic Advice BranchDepartment of Sustainability, Environment, Water, Population and CommunitiesPost: GPO Box 787, Canberra ACT 2601

Tel: 02 6274 1111Fax: 02 6274 1666

Email: [email protected]: www.environment.gov.au

This annual report is available electronically at <www.environment.gov.au>.

Executive summary

Secretary’s review

Over the past year the department has continued to deliver a significant number of reforms and advance the Australian Government’s sustainability agenda.

The Australian Government’s announcement of a national representative system of marine national parks in June 2012 marked the culmination of many years work by the department. This included undertaking the necessary detailed technical and scientific work and managing extensive consultation with commercial and recreational fishers and local communities. The department also supported the next stages of development of the Murray–Darling Basin Plan, providing water security for the future for the environment and the industries and communities relying on it. Under the Clean Energy Future Plan to place a price on carbon, the department also delivered the first round of the Biodiversity Fund and prepared for the introduction of an equivalent carbon price on synthetic greenhouse gases from 1 July 2012.

Other achievements in 2011–12 included the implementation of product stewardship legislation, delivering on a key commitment by the government under the National Waste Policy; commemoration of 100 years of exploration and science in Antarctica; and engagement in the UN Conference on Sustainable Development (Rio+20) Conference in Brazil, where the Indigenous Peoples and Local Communities Land and Sea Managers Network was announced.

The national heritage listing of the West Kimberley in August 2011, the largest national heritage listing, was a landmark listing and continues the important work by the department in ensuring the protection of our Indigenous, natural and cultural heritage. The department continued to tap into Indigenous knowledge through the Working on Country program and on the expansion of Indigenous Protected Areas. This is an important contribution to protecting our land and creating jobs and supporting healthy communities.

Through the Caring for our Country program, the National Wildlife Corridors Plan and the new Biodiversity Fund, the department assisted land managers to protect connected habitat for threatened species and build resilience in the landscape. The creation of wildlife corridors ensures a connected, ecosystem-scale approach to land management on both private land and on our growing estate of national reserves.

The department commenced a key new program of work to improve scientific research and increase community confidence in decision-making processes regarding coal mining and coal seam gas developments, with the establishment of the Office of Water Science. This office is working to build the scientific evidence base and understanding of the impacts on water resources of coal seam gas extraction and large coal mines.

The department progressed important work on sustainability to help improve the wellbeing of current and future generations. This included the development of a Sustainability Framework to provide a practical and enduring frame of reference for all departmental staff whereby our work and our approach is viewed through a ‘lens of sustainability’. In addition, the development of a headline set of sustainability indicators at a regional and national scale will help track progress as communities plan and respond to emerging challenges.

The diverse range of achievements in 2011–12 came during a time when the department was continuing to build its capabilities in a number of areas. In response to a Capability Review conducted by the Australian Public Service Commission, the department is progressing projects to improve our delivery, leadership and strategic capability and to improve the department’s internal communications and connections. These projects build on earlier activities that have significantly improved the department’s capabilities in several areas including governance, procurement, grants management, finance, budgeting and forecasting, project management and risk management.

I continue to be extremely impressed with the response of all staff to the challenges of our work and I would like to acknowledge their professionalism and efforts throughout the year.

Biodiversity and ecosystems

Australia’s capacity to understand, manage and conserve our unique biodiversity was given a boost by the establishment of five multi-institutional, multi-disciplinary research hubs under the National Environmental Research Program.

The first round of the Biodiversity Fund under the Clean Energy Future Plan was successfully rolled out with a total of 313 projects with a value of $271 million (GST exclusive) over six years. These projects will revegetate, rehabilitate and restore around 18 million hectares of the Australian landscape.

The final report on the review of the first phase of Caring for our Country was released on 18 April 2012, finding the initiative to be on track to meet its goals and in supporting the community to protect and conserve the environment and increase the adoption of sustainable land management practices.

The department finalised development of a national network of Commonwealth marine reserves and completed the draft management plan for the South-east Commonwealth Marine Reserve Network. As part of the marine bioregional planning program, new Commonwealth marine reserves networks in the South-west, North-west, North, Temperate East and Coral Sea marine regions were identified. These Commonwealth marine reserves will play an important role in the long-term conservation of marine ecosystems and the biodiversity of our oceans.

Bush Blitz, a program to undertake taxonomic surveys, successfully completed five expeditions across National Reserve System properties totalling 604607 hectares in Victoria, Tasmania, Western Australia and the Northern Territory. The program also funded a total of 11 capacity-building grants and tactical taxonomy contracts to participating Bush Blitz scientists.

The department continued to assess large, complex and economically significant projects under the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act). This year 75 proposals were approved under the EPBC Act including the Chevron Wheatstone project to construct a liquefied natural gas (LNG) and domestic gas plant in the Pilbara, Western Australia. Some 70 conditions were imposed to ensure the protection of listed threatened and migratory species and of the Commonwealth marine area.

Waste

The Product Stewardship Act 2011 (the Act) came into effect on 8 August 2011, delivering on a key commitment by the Australian Government under the National Waste Policy. Televisions and computers were the first products to be regulated under the Act, with the Product Stewardship (Televisions and Computers) Regulations 2011 coming into effect on 8 November 2011. The Regulations provide for a National Television and Computer Recycling Scheme, funded and run by industry. This will progressively increase the national recycling rate for televisions, computers, printers and computer products to 80 percent in 2021–22.

Carbon pricing

The department prepared for the introduction of an equivalent carbon price on synthetic greenhouse gases from 1 July 2012, part of the Australian Government’s Clean Energy Future Plan. This will create a financial incentive to reduce emissions of synthetic greenhouse gases, which have high global-warming potentials.

Sustainable communities

The department progressed the development of a set of headline sustainability indicators for Australia, following consultation with a broad range of stakeholders and experts.

Thirty-one applications were received under the Suburban Jobs program, demonstrating strong interest from state and local governments and highlighting the pressures faced by growth areas across the country. This program aims to support local and state governments to plan and provide for increased employment opportunities outside the CBDs of major cities.

Antarctica

A total of 97 science projects were conducted within the Australian Antarctic program. One of these projects successfully pioneered new techniques for counting penguins from space, further advancing Australia’s conservation outcomes.

The department continued to progress Australia’s interests in the Antarctic region through forums such as Antarctic Treaty Consultative meeting, and with the Department of Foreign Affairs and Trade successfully hosted the 35th meeting in June 2012.

Water

In April 2012 a milestone of 1000 gigalitres of Commonwealth environmental water delivered to wetlands and rivers in the Murray–Darling Basin was reached. Besides improving river and wetland ecosystem health, the water has been used to protect and conserve Murray cod, river red gums, and waterbirds.

More than $1 billion in funding was invested in irrigation infrastructure to deliver water reform. This investment will improve the efficiency of irrigation networks to fix and replace old, leaky systems, modernise on-farm infrastructure, and rationalise and upgrade delivery systems.

Portfolio structureThe Sustainability, Environment, Water, Population and Communities portfolio is led by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP. Minister Burke is assisted by the Parliamentary Secretary for Sustainability and Urban Water, Senator the Hon. Don Farrell.

As at 30June 2012 the portfolio comprised the Department of Sustainability, Environment, Water, Population and Communities, and six independent authorities (listed in the Organisation overview chart).

Department overview

Our mission

To advance a sustainable Australia: our environment, water, heritage and communities.

Role and functions

The department supports the minister in his policy and statutory functions and develops and implements national policy, programs and legislation to protect and conserve Australia’s environment, water, heritage and communities.

The department’s primary roles are best conceptualised through the five outcomes we aim to achieve and an overarching corporate outcome.

Outcome and program structureThe department’s outcomes and programs structure as set out in the 2011–2012 Portfolio Budget Statements and the 2011–2012 Portfolio Additional Estimates Statements is as follows:

Outcome and program structure

Outcomes Programs

Outcome 1: Biodiversity and Ecosystems The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.

Program 1.1: Sustainable Management of Natural Resources and the Environment Program 1.2: Environmental Information and Research Program 1.3: Carbon Pollution Reduction–Land Sector Initiatives

*Outcome 2: Sustainable Population and Communities Improved sustainability of Australia’s population, communities and environment

Program 2.1: Management of Hazardous Waste, Substances and Pollutants Program

Outcomes Programs

through coordination and development of sustainable population and communities policies; and the reduction and regulation of waste, pollutants and hazardous substances.

2.3: Sustainable Communities

Outcome 3: Antarctica Advancement of Australia’s strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.

Program 3.1: Antarctic Science, Policy and Presence

Outcome 4: Sustainable Water Adaptation to climate change, wise water use, secure water supplies, and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources.

Program 4.1: Water Reform

Outcome 5: Environmental Protection and Heritage Conservation Increased protection, awareness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of National and World Heritage significance.

Program 5.1: Conservation of Australia’s Heritage Program 5.2: Environmental Regulation

*As a result of the Administrative Arrangements Order made on 14 December 2011, the Housing component of this Outcome (Program 2.2) was transferred to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury.

Senior executive teamDr Paul Grimes was appointed secretary of the department in June 2011. Dr Grimes was assisted in the management of the department by an executive team of three deputy secretaries and 18 division heads. The names, responsibilities and tenures of the division heads are shown in the organisation chart.

Dr. Paul Grimes joined the department in September 2010 as Acting Secretary from the Department of the Prime Minister and Cabinet, where he had been Associate Secretary (Domestic Policy). Before this, Dr Grimes was General Manager of the Budget Group in the Department of Finance and Deregulation. Dr Grimes has also served as the Chief Executive of the ACT Department of Treasury and, earlier, as Deputy Under Treasurer in the South Australian Department of Treasury and Finance.

Malcolm Thompson is the deputy secretary responsible for the Land and Coasts, Sustainability Policy and Analysis, Environment Quality and Parks Australia Divisions and the Land Sector Taskforce and International Biodiversity and Sustainability Taskforce. Mr Thompson has over 25 years experience as a policy adviser to the Australian Government. He studied economics at the University of Queensland before beginning his career in the Department of the Prime Minister and Cabinet. He has also worked in the Treasury, the Assistant Treasurer’s office and the Department of Transport and Regional Services. From 2003 to 2007 Mr Thompson concentrated on water policy, helping to develop the National Water Initiative and to establish the National Water Commission. Mr Thompson joined the department in 2007 as head of the Policy Coordination Division. He was appointed deputy secretary in September 2009.

Kimberley Dripps joined the department as deputy secretary in January 2011. Ms Dripps is responsible for the Environment Assessment and Compliance, Heritage and Wildlife, Marine and Supervising Scientist Divisions and the Regulatory Reform Taskforce. She also manages the strategic relationship with the Great Barrier Reef Marine Park Authority. Ms Dripps was previously the Executive Director Biodiversity and Ecosystem Services in Victoria’s Department of Sustainability and Executive Director Planning and Land Acquisition in the Department of Infrastructure and Transport. Between 1999 and 2007 Ms Dripps had various roles within Victorian Government departments. Ms Dripps has a Bachelor of Veterinary Science (Hons) and an MBA.

David Parker joined the department as deputy secretary in February2011. Mr Parker is responsible for the Commonwealth Environment Water Holder, Water Efficiency and Water Reform Divisions, the Office of Water Science and the Australian Antarctic Division. Mr Parker has qualifications in economics and law and is the former deputy secretary of the Treasury where he led the Revenue Group and was Chair of the Treasury Audit Committee. With a career spanning over 25 years with the Treasury, Mr Parker has worked on financial sector liberalisation, tax

reform, macroeconomic forecasting and policy, competition policy, energy policy and international economic issues. From 1997–2002 Mr Parker worked at the OECD in Paris.

Organisation overview of the portfolio at 30 June 2012

Sustainability, Environment, Water, Population and Communities portfolio

The Hon. Tony Burke MP Minister for Sustainability, Environment, Water, Population and Communities

Senator the Hon. Don Farrell Parliamentary Secretary for Sustainability and Urban Water

Department of Sustainability, Environment, Water, Population and Communities Dr Paul Grimes–Secretary

Portfolio Statutory Authorities/Positions

Malcolm Thompson Deputy Secretary

Kimberley Dripps Deputy Secretary

David Parker Deputy Secretary

Parks Australia Division

Marine Division Australian Antarctic Division

Corporate Strategies Division

Bureau of Meteorology

Peter Cochrane Stephen Oxley Tony Fleming Dianne Carlos Rob Vertessy

Director of National Parks

First Assistant Secretary

Director Chief Operating Officer

Director of Meteorology

Land and Coasts Division

Environment Assessment and Compliance Division

Water Efficiency Division

Policy and Communications Division

Director of National Parks

Sean Sullivan Dean Knudson Mary Harwood James Shevlin Peter Cochrane





Director

Environment Quality Division

Heritage and Wildlife Division

Water Reform Division

Great Barrier Reef Marine Park Authority

Diana Wright Alison Stone Tony Slatyer Russell Reichelt




Chairperson

Land Sector Taskforce

Supervising Scientist Division

Office of Water Science

Murray–Darling Basin Authority

Mark Flanigan Alan Hughes Alex Rankin Rhondda Dickson


Supervising Scientist First Assistant Secretary

Chief Executive Officer

Sustainability Policy and Analysis Division

Regulatory Reform Taskforce

Commonwealth Environmental Water Holder

National Water Commission

Mary Wiley-Smith Peter Burnett David Parker James Cameron

First Assistant Secretary (Acting)


Chief Executive Officer

Rio+20 Taskforce / Whale Conservation Division

Sydney Harbour Federation Trust

Donna Petrachenko Geoff Bailey


Executive Director

Summary of financial performanceDuring the 2011–12 financial year the department reported a departmental operating loss of $4.1 million after excluding depreciation/amortisation and unfunded finance and make-good costs. This result is within budget, as approval for an operating loss was received on 18June2012 from the Minister for Finance and Deregulation.

The department’s financial performance included the new Office of Water Science division after the government announced on 21 November 2011 that it was introducing a new science-based framework to protect the long term health and value of Australia’s water resources by ensuring that the management of coal seam gas and large coal mining development is rigorous, transparent and based on the best available science.

In addition, the department’s financial performance for the year reflected the result of a restructuring following the transfer of the Housing Affordability function back to the Department of Families, Housing, Community Services and Indigenous Affairs, and the transfer of the Housing Supply Policy function back to the Department of the Treasury on 14 December 2011.

Expenditure on activities administered by the department on behalf of the Australian Government totalled $888 million during 2011–12. This expenditure was primarily related to grants, suppliers, and a non-cash charge for the write down and impairment of water assets. A comprehensive listing of the grant expenditure by program is provided in the department’s 2011–12 financial statements at Note 18C.

The department managed administered assets on behalf of the Australian Government of $3 billion which is largely comprised of water entitlement assets of $1.9 billion, investments in two other portfolio entities of $571 million and the share of other property, plant and equipment in the River Murray Operations joint venture of $491 million.

The Australian National Audit Office audited the department’s 2011–12 financial statements and issued an unmodified audit opinion for these statements on 30 August 2012.

Outcome 1: Biodiversity and ecosystems

‘Conserving and protecting Australia’s unique biodiversity.’

The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.

Main responsibilities for this outcome

Administration of the Caring for our Country initiative. Lands and Coasts Division

Biodiversity Fund. Indigenous Carbon Farming Fund. Regional Natural Resource Management Planning for Climate Change. Land Sector Carbon and Biodiversity Board. National Wildlife Corridors Plan.

Land Sector Taskforce

Invasive species policy and threat abatement planning. Development of marine bioregional plans. Development and management of Commonwealth marine reserves. Marine and migratory species protection. International marine conservation initiatives. Fisheries policy and assessments. Progressing the government’s anti-whaling agenda.

Marine Division

Promoting the science and information base of the department in the areas of environment research, information and reporting. Administering the National Environmental Research Program. Implementation (in partnership with the Bureau of Meteorology) of the National Plan for Environmental Information initiative. Australia State of the Environment 2011 report.


Management of terrestrial reserves. Administration of the National Reserve System program and the Indigenous Protected Areas program. Management of the Australian Biological Resources Study and the development of Australian Government policy on the management of Australia’s genetic resources. Coordination and leadership in meeting Australia’s commitments under the Convention on Biological Diversity.

Parks Australia Division

Objectives Through the Caring for our Country initiative, promote an environment that is healthy, better protected, well

managed, resilient and provides essential ecosystem services in a changing climate. Through the Land Sector Package (an element of the Clean Energy Future plan), assist the transition to a lower

carbon economy while improving the resilience of Australia’s landscapes to the impacts of climate change, improving the environmental outcomes of carbon farming projects, and helping landholders protect carbon and biodiversity values on their land.

Conserve Australia’s biodiversity at the landscape scale, in particular by linking landscapes through the establishment of wildlife corridors.

Establish and manage a regulatory framework which maximises social, economic and environmental returns from investment in biodiscovery in Australia.

Through the National Environmental Research Program, deliver public good focused environmental research designed to engage with end users and support evidence based decision making by environmental managers and policy makers.

Develop and implement a National Plan for Environmental Information in conjunction with the Bureau of Meteorology.

Finalise the Australia State of the Environment 2011 report. Build Australia’s taxonomic knowledge and capacity. Progress Australia’s international efforts to stop commercial whaling, including scientific whaling. Identify a proposed national network of new Commonwealth marine reserves to become part of the National

Representative System of Marine Protected Areas. Develop and implement national policies to support the ecologically sustainable management of the marine

and coastal environment.

Identify key conservation priorities for marine biodiversity and ecosystems through the marine bioregional planning program.

Conserve Australia’s biodiversity within our protected area estate. Contribute to the development of consistent national approaches to reversing biodiversity decline in important

ecosystems and ecologically significant communities. Improve the quality and availability of environmental information for decision makers through the marine

bioregional planning program. Improve conservation outcomes for marine biodiversity, including for listed marine and migratory species. Contribute to effective environmental biosecurity for the nation. Contribute to the implementation of the Tasmanian Forests Intergovernmental Agreement to facilitate the

protection of additional areas of native forest with significant conservation values and contribute to the management of these additional reserve areas.

Highlights The following examples highlight the achievements of Caring for our Country.

o The Reef Rescue program provided financial assistance to more than 2500 land managers over 3.2million hectares as at 30 June 2012, and is on track to meet Caring for our Country–Reef Rescue targets. More than 1100 farmers undertook projects to improve fertiliser, pesticide and soil management on over 500000 hectares of land, representing 75percent of the five-year farmer engagement target achieved after three years. Additionally, 480 graziers have improved groundcover management over 2.7 million hectares of land, representing 74 percent of the five-year grazier engagement target achieved after three years.

o Caring for our Country’s Environmental Stewardship program is now assisting stewardship efforts in over 55000 hectares of nationally threatened ecological communities.

o The Working on Country program met its 2013 target a year early, with approximately 690 Indigenous rangers contracted to manage significant environmental outcomes. The program contributes to Closing the Gap targets by providing meaningful employment opportunities that enable Indigenous people to manage their country and maintain culture. This work brings economic, social and health benefits to Indigenous people and delivers environmental services to the Australian community.

o The final report on the review of the first phase of Caring for our Country was released on 18 April 2012. The review found the initiative to be on track to meet its goals and is supporting the community to protect and conserve the environment and increase the adoption of sustainable land management practices.

o As a result of Caring for our Country investments during 2011–12, the National Reserve System increased by 10.529 million hectares, including seven new Indigenous Protected Areas (IPAs) covering 10.296 million hectares. Caring for our Country funding assisted governments and non-government organisations in the purchase of 11 properties covering 233525 hectares for inclusion in the National Reserve System. New projects worth just over $1.16million were approved for conservation covenanting organisations to support the establishment of Protected Areas on Private Land.

Under the National Environmental Research Program, five multi-institutional, multi-disciplinary research hubs were established and commenced four-year research programs to improve our capacity to understand, manage and conserve Australia’s unique biodiversity.

The Biodiversity Fund Round One provided a total of 313 projects with $271 million (GST exclusive) in funding over six years. These projects will revegetate, rehabilitate and restore around 18 million hectares of the Australian landscape.

Progress was maintained in the International Whaling Commission (IWC) on key governance reforms and conservation initiatives of importance to Australia, including: whale watching; Conservation Management Plans; the Southern Ocean Research Partnership; strengthening conservation funding; and reviewing IWC processes to improve operational effectiveness and increase transparency and accountability.

Support was provided to Australia’s legal case against Japanese scientific whaling in the International Court of Justice.

On 14 June 2012 the minister released details of the Australian Government’s proposed final Commonwealth marine reserves network. The marine reserves network proposal was finalised following extensive stakeholder consultations conducted in each region, feedback received through submissions, and consideration of socioeconomic assessments by the Australian Bureau of Agricultural and Resource Economics and Sciences.

The final Commonwealth marine reserves network proposals are subject to a final round of public comment during the second half of 2012 as part of the process for proclaiming them under the EPBC Act.

Between May 2011 and February 2012, draft marine bioregional plans were released for public comment for the South-west, North-west, North and Temperate East marine regions. The draft plans included an assessment of pressures on key conservation values, identified regional conservation priorities, and proposed strategies and actions to address the suggested conservation priorities. The draft plans also included advice on the protection of matters of national environmental significance in each region. These plans were finalised in the second half of 2012.

The Tasmanian Forests Intergovernmental Agreement was announced by the Prime Minister, the Hon. Julia Gillard MP, and the Tasmanian Premier, the Hon. Lara Giddings, on 7 August 2011. A Conservation Agreement was signed on 13 January 2012 to provide interim protection for an area of almost 430000 hectares of native forest with significant conservation values while negotiations continue among key stakeholders to develop an agreed wood supply and conservation outcome.

Key achievementsThe following examples highlight the achievements of Caring for our Country.

The Indigenous Fire Management project, funded under Caring for our Country, has now expanded the use of traditional fire management regimes across more than 200000 square kilometres of the northern savannas. With four large-scale project areas across the Kimberley (Western Australia), central Arnhem Land (Northern Territory), western Cape York (Queensland) and the Gulf of Carpentaria (Queensland/Northern Territory), the projects are continuing to manage the incidence of destructive wild fires. There was an 80 percent reduction in wildfires within the project area relative to the pre-project baseline.

The Environmental Stewardship program funding round in the Adelaide and Mount Lofty Ranges, Northern, Yorke and South Australian Murray–Darling Basin natural resource management regions of South Australia resulted in funding for up to 15 years being approved for private land managers to carry out actions on 18properties that will help protect and enhance the endangered peppermint box (Eucalyptus odorata) grassy woodland and iron grass (Lomandra spp.) natural temperate grassland ecological communities of South Australia.

The draft National Wildlife Corridors Plan was further developed to conserve Australia’s biodiversity at the landscape scale, in particular by linking landscapes through the establishment of wildlife corridors. The plan is designed to increase the resilience of Australia’s native plants, animals and agricultural landscapes against the impacts of climate change, and establishes a strategic national approach to managing biodiversity and native vegetation for future investment.

Caring for our Country helped to restore or protect the environmental values of priority Ramsar-listed wetland sites and other high-conservation value sites, including the Vasse-Wonnerup System in Western Australia, the Lower Ovens River System in Victoria, the Barwon–Darling River System and Northern Tributaries in New South Wales and Queensland, and the Derwent Estuary in Tasmania.

The declaration of the Southern Tanami Indigenous Protected Area (IPA) was a major milestone for the IPA program, adding 10158000 hectares to the National Reserve System and creating the largest terrestrial protected area in the Australia.

The five-yearly Australia State of the Environment 2011 report, which provides a national assessment of Australia’s environment, was tabled in parliament and released by the minister in December 2011.

Australia signed the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits arising from their Utilisation on 20 January 2012 and commenced the consultation process for ratification.

In 2011–12 the department, under the access and benefit-sharing provisions of the EPBC Act (EPBC Regulations 2000, Part 8A) issued 70 access permits and entered into one benefit-sharing agreement with a university investigating novel chemical compounds from organisms collected in Australia’s deep seas.

Since 2010–11 more than 20000 species names and 430 families have been added to Australian Faunal Directory online database. This represents an increase in the number of listed species names by around 20percent. Notable additions in 2011–12 include the compilation and online publication of stand alone inventories of weevils and lichens.

The Australian Biological Resources Study (ABRS) funded 60 research grants and taxonomic training positions (PhD, Masters and Honours scholarships) and 13 student travel bursaries in 2011–12 under the National Taxonomy Research Grant program.

The Land Sector Carbon and Biodiversity Board was established and is providing advice to government on a range of measures that will increase the land sector’s resilience to climate change and improve long-term agricultural productivity.

As Chair of the Working Group on Conservation Management Plans, Australia:o supported the development of draft Conservation Management Plans for South American populations

of southern right whales, submitted to the International Whaling Commission (IWC) at the July 2012 annual meeting

o compiled an inventory of cetacean conservation measures in the Pacific Islands region, submitted to the IWC at the July 2012 annual meeting.

Australia continued to lead on the development and implementation of core projects of the Southern Ocean Research Partnership, including:

o supporting and presenting at the Symposium and Workshop, Living Whales in the Southern Ocean, held in PuertoVaras, Chile, from 27–29 March 2012

o preparations for a major Australian research expedition to Antarctica in the summer of 2012–13 as part of the Antarctic blue whale project.

The second year of a three-year pilot program to control tropical fire ants (ginger ants), Solenopsis geminata, was successfully completed at Ashmore Reef National Nature Reserve. The work undertaken over the year indicated positive control outcomes and supported the extension of the program to other islands in the Ashmore islet system.

A collaborative agreement between the department and the Australian Fisheries Management Authority was established to enable the sharing and analysis of Vessel Monitoring System data from commercial fishers operating in Commonwealth marine reserves, with a view to improving the understanding of use patterns in marine reserves. Under the agreement, a geo-fence alert system for commercial fishers operating or entering Commonwealth marine reserves is being developed to assist with awareness of boundaries and rules.

The Tasmanian Forests National Partnership Agreement was signed by the Prime Minister and the Tasmanian Premier on 26 September 2011, enabling initial payments of $50 million to the Tasmanian Government to facilitate implementation of the Intergovernmental Agreement, including management of conservation areas.

The Tasmanian Forests Independent Verification Report was released on 23March2012 and provides an independent assessment of stakeholder claims relating to wood supply and conservation values in nominated areas of Tasmania’s public native forests. This major report informs the ongoing engagement by industry, union and environment stakeholders in their efforts to reach an agreed wood supply and conservation outcome.

Strategies

Program 1.1: Sustainable management of natural resources and the environment

Caring for our Country

Caring for our Country is the government’s flagship environment protection and sustainable agriculture initiative. It funds projects across the country to achieve national targets—projects that improve biodiversity and sustainable farm practices. This funding supports regional natural resource management groups, local, state and territory governments, Indigenous groups, industry bodies, land managers, farmers, Landcare groups and communities. Details of subprogram elements of this initiative follow.

Natural Heritage Trust

The Natural Heritage Trust provides one of the funding streams to support the government’s Caring for our Country initiative. The 2011–12 Natural Heritage Trust of Australia Act 1997 annual report is included in this outcome chapter of the department’s annual report for 2011–12.

Community Action Grants

The Community Action Grants program was established to support community groups and enable them to contribute to the outcomes of the Caring for our Country initiative. The program offers grants of between $5,000 and $20,000 to

encourage their participation and engagement in natural resource management around the country. The grants provide assistance to enable grassroots-level organisations to deliver better environmental outcomes across Australia.

In 2011–12 the Community Action Grants program provided $6.43 million in small Community Action Grants for 362 projects across Australia, which included $786,143 to Indigenous organisations to fund 38projects. The successful groups used the funding to conduct natural resource management work and record cultural heritage and traditional knowledge.

Groups around Australia worked on activities including:

planting and protecting areas of existing native and/or remnant vegetation reducing the impact of invasive species, including Weeds of National Significance recording of Indigenous knowledge and cultural heritage holding workshops and field days to build community awareness and knowledge of local environmental issues demonstrating sustainable land management techniques, such as managing soil erosion or rehabilitating land to

protect and conserve Australia’s natural environment.

The National Reserve System

The National Reserve System is Australia’s national network of formally recognised protected areas, dedicated to the long-term protection of Australia’s terrestrial biodiversity. The National Reserve System consists of over 10000 terrestrial protected areas covering more than 117million hectares, or 15.25 per cent of the Australian landmass. It includes a broad range of habitats from lush rainforests to savannahs through to our alpine regions and deserts. The National Reserve System program provides funding assistance through Caring for our Country to support the collective effort of governments, non-government organisations, Indigenous and private landholders to expand the protected area estate.

Underpinning Australia’s National Reserve System is a scientific bioregional framework, which sets out targets required to achieve a comprehensive, adequate and representative reserve system. The aim is to fill notable gaps in the system by increasing the level of protection in bioregions that are less than 10per cent protected in reserves. The creation of a comprehensive, adequate and representative National Reserve System also plays an important role in protecting habitat for threatened species and ecosystems as well as land in recognised biodiversity corridors, better enabling species to migrate through the landscape and adapt to future climate change.

The National Reserve System program provides financial assistance to organisations buying high conservation value land for the creation and consolidation of conservation reserves and supports covenanting agencies in protecting areas of high conservation value on private land.

During 2011–12 the Australian Government contributed nearly $26.4 million towards the purchase of 11 properties covering approximately 233525 hectares. It also contributed just over $1.49 million to accelerate the registration of conservation covenants over private lands.

Land purchases supported this year included:

Thelangerin, a 20164 hectare property located north-west of Hay in New South Wales. The property contains habitat for at least 16 nationally threatened species in the under-represented Riverina Interim Biogeographic Regionalisation for Australia bioregion. Thelangerin also contains the most easterly occurrence of two saltbush communities in New South Wales and protects habitat for nationally listed migratory species. With its river red gum and black box communities, semi-arid shrub lands, a nationally important wetland (the Lachlan Swamp) and extensive Lachlan River frontage, Thelangerin’s biodiversity values are extensive. Thelangerin’s western boundary adjoins the Kalyarr sections of the Lachlan Valley National Park and its south-eastern boundary adjoins the Lachlan Valley State Conservation Area. This connection significantly enhances the viability of the biodiversity values in all three reserves and consolidates this important reserve node into a protected area of approximately 42335 hectares.

Eight Mile, a 13579 hectare property in north-central Queensland. The property contains habitat for eight nationally listed threatened species. Eight Mile also protects important wetlands associated with the Gilbert River and its tributaries and diverse ecosystems that transition across the poorly protected Gulf Plains and Einasleigh Uplands bioregions. Through its connection to the Gilbert River and Rungulla protected areas and the Great Artesian Basin Rim state-wide corridor, Eight Mile provides an important climatic refuge and

enhances habitat continuity. The property shares its entire western boundary with the Gilbert and Rungulla protected area node, increasing the overall protected area to more than 130000 hectares.

Indigenous Protected Areas

The government’s Caring for our Country initiative provides funding over five years to support Indigenous Protected Areas (IPAs)—non-statutory protected areas that form part of the National Reserve System. The funding assists Indigenous landowners to establish and manage IPAs on their lands and supports them through contractual arrangements with the government. The program also promotes the integration of Indigenous ecological and cultural knowledge into the management of these areas.

In 2011–12 the Indigenous Protected Areas program supported 51declared IPAs. Another 43 consultation projects explored the potential for IPA declaration over additional areas of Indigenous-owned land.

The government’s Caring for our Country initiative provided over $12.5million in grants and project support during 2011–12.

Seven new IPAs, covering 10.296millionhectares, were declared in 2011–12:

Dorodong IPA covers 85 hectares in the New South Wales North Coast Bioregion and provides habitat for several rare and unusual species of frog.

Weilmoringle IPA in central New South Wales covers 4073 hectares of mixed eucalypt forest with shallow creeks and swamps, providing habitat for several listed vulnerable species.

Yanyuwa IPA covers more than 130000 hectares of land in the Gulf Coastal Bioregion adjacent to the McArthur River at Borroloola and incorporates five Sir Edward Pellew archipelago islands.

Minyumai IPA includes more than 2000 hectares of paperbark groves and eucalypt and bloodwood forests, as well as rare patches of rainforest that help to form a crucial wildlife corridor of more than 20000 hectares linking Tabbimobile Swamp Nature Reserve with Budjalung National Park.

Gumma IPA includes 111 hectares of salt marshes and mangroves with dense, old-growth eucalypt forest adjacent to Nambucca Heads in New South Wales. The area provides habitat for arboreal mammals and micro-bats, with the dense undergrowth home to a number of rare or threatened species.

Mandingalbay Yidinji IPA, adjacent to Cairns in Queensland, became the first IPA to be recognised over a range of conservation tenures through agreement with the relevant management agencies. It includes Aboriginal land and existing government protected areas, including Grey Peaks National Park, East Trinity Environmental Reserve, and the Trinity Inlet Fish Habitat Area.

The Southern Tanami IPA covers 10.158 million hectares of the Tanami Desert and the Great Sandy Desert in the Northern Territory, making it the largest terrestrial protected area in Australia. It provides habitat for an extremely diverse reptile fauna as well as several listed threatened species (see Case study, below).

Indigenous Emissions Trading Scheme

The Indigenous Emissions Trading Scheme positioned Indigenous land managers for entry into emerging carbon markets. The government’s commitment under the Caring for our Country initiative provided $10 million over four years (2008–12) to facilitate Indigenous participation in carbon markets. The scheme was delivered in two project streams: Indigenous Fire Management in Northern Australia aimed to generate carbon market opportunities through traditional fire management; and Indigenous Carbon Market Participation supported Indigenous engagement in carbon market opportunities beyond the northern savannah regions.

Indigenous programs

Caring for our Country programs that support Indigenous people and communities contribute to the Australian Government’s commitment to Closing the Gap.

Under Caring for our Country, the Working on Country program met its target, with over 690 Indigenous rangers employed to manage and deliver significant environmental outcomes over 1.5 million square kilometres of land and sea country in remote and regional Australia. Working on Country provides nationally accredited training and career pathways for Indigenous Australians.

As part of the Stronger Futures in the Northern Territory jobs package, Working on Country is on track to employ up to an additional 50 Indigenous rangers by June 2016. These ranger positions have created real jobs, giving individuals, their families and their communities greater economic certainty whilst delivering improved environmental outcomes for the nation.

Sustainable agriculture

Through the sustainable farm practices national priority area, the Australian Government is committed to increasing the adoption of management practices that continue to maintain and improve production whilst also delivering ecosystem services that benefit the whole community.

Over 453 projects helped over 30200 farmers to adopt improved sustainable farm and land management practices to reduce soil loss and improve soil quality on their land, to adopt activities that contribute to the ongoing conservation and protection of biodiversity, and to improve their knowledge and skills in managing natural resources and environmental assets.

Funding for Landcare in 2011–12 is consistent with funding levels provided under previous years of the program. Since its inception in July 2008, Caring for our Country funding has provided $448.34million for Landcare and sustainable farm practice projects.

Weeds and pest animals

Over $81.6 million was invested in projects that have a significant component of weed and pest animal management through Caring for our Country business plan open-call grants. This included more than $280,000 in Caring for our Country funds to learn more about the introduced plant disease myrtle rust and recommend management strategies to counter its effects on the rainforests of Queensland’s World Heritage areas.

In addition, 664 Community Action Grants worth over $7.4 million focused on weed or pest animal control and management. This included 153 projects worth $2.6 million announced under the 2011–12 funding round.

Caring for our Country will have invested a total of $711 million through regional base-level funding to regional natural resource management (NRM) bodies from 2008 to 2013. Over $92 million of this funding relates to managing the impact of weeds and pests.

The successful eradication of rabbits and rodents from Macquarie Island is on track to leave the island free of vertebrate pests for the first time in over 150 years. The Australian Government will have provided more than $9 million to the Macquarie Island Pest Eradication program over 2008–13.

Environmental Stewardship program

The delivery of the Environmental Stewardship program is guided by a strategic plan, a project plan and funding and implementation guidelines. The on-ground delivery of the funding rounds is supported by delivery agents who work closely with eligible land managers to develop expressions of interest and funding bids. Funding agreements set out the roles and obligations to be undertaken by land managers if they are to receive support, which may be for up to 15 years.

National Wildlife Corridors Plan

The National Wildlife Corridors Plan Advisory Group comprises representatives from conservation non-government organisations, academia, regional NRM organisations, peak industry groups and Indigenous groups. The department provided secretariat support to the Advisory Group, which held 10 meetings in 2011–12 and was supported by two technical expert working groups (a social and institutional group and a climate change and biodiversity group).

On 8March2012 the draft National Wildlife Corridors Plan was publicly released. Meetings were held in all capital cities and selected regional centres with the following stakeholder groups: agriculture, mining, Indigenous groups, state and local governments, environment groups and academia, regional NRM organisations, urban developers, and the tourism industry. An online submission process was also established to gather views and ideas from the community.

The National Wildlife Corridors Plan Advisory Group has factored stakeholder views into its revised draft for government consideration.

Reef Rescue

Reef Rescue aims to improve the health of the Great Barrier Reef and its resilience to climate change by improving water quality in the reef catchment. The initiative is helping land managers adopt practices that reduce the nutrients, pesticides and sediments leaving their properties and entering the reef lagoon. Reef Rescue also supports monitoring, assessment, reporting and research.

Funding of $200million over five years through Caring for our Country was committed for activities under the Reef Rescue program. The initiative is administered jointly by this department and by the Department of Agriculture, Fisheries and Forestry.

The $10 million Reef Rescue Research and Development program is midway through its implementation phase. The 18 projects dedicated to improving our understanding of the link between land management practice and environmental impacts are expected to be completed before June 2013.

Community Coastcare

The government’s Community Coastcare commitment is providing funding over five years to help local communities protect and restore the Australian coastline and prepare for the impact of climate change. Since 2008, $71.7 million (GST exclusive) has been approved and allocated to projects thatinvolve community groups. The funding has contributed projects which are increasing the capacity of coastal communities to adapt, restore and protect the local coastal environment. Coastcare investment is also supporting coastal communities to protect our coastal biodiversity from key threats and pressures.

Ramsar wetlands and high ecological value aquatic ecosystems

Since 2008, $30.4 million has been approved under Caring for our Country for the protection and restoration of significant aquatic ecosystems. Priority was given to Ramsar wetlands in northern and remote Australia and high ecological value aquatic ecosystems in the Murray–Darling Basin. Ramsar wetlands are recognised as internationally important sites for flora, fauna and the ecological communities they support. High ecological value aquatic ecosystems include rivers, wetlands, floodplains, lakes, inland saline ecosystems, groundwater-dependant ecosystems and estuaries of high environmental value. This funding helped communities to implement measures to protect, restore and manage nationally and internationally significant wetlands sites through on-ground activities, information gathering and community engagement and capacity building.

Gippsland Lakes

The Gippsland Lakes area is a significant Ramsar-listed wetland system. Through Caring for our Country, $5.25 million has been invested over three years in planning and on-ground actions to protect the conservation values of the area. Strategies were developed to improve water quality and reduce nutrient inputs from public and private land and to minimise the impacts of flooding. Actions to address these issues continue to be implemented.

Improved water quality management in the Tuggerah Lakes

Caring for our Country invested in planning and on-ground actions that protect the conservation values of coastal and inland high ecological value aquatic ecosystems, including the Tuggerah Lakes estuary in New South Wales.

The project is managed through a range of partnerships with the NSW Government, the Hunter–Central Rivers Catchment Management Authority, Landcare groups and local landholders. Funding of $20 million has been provided from 2007 to 2013 for the works under this program.

Activities funded through Caring for our County contributed to the rehabilitation of watercourses and salt marsh communities.

Australia’s Biodiversity Conservation Strategy 2010–30

National and international workshops and meetings of key government and non-government officials from a broad range of disciplines were held to inform key activities to implement Australia’s Biodiversity Conservation Strategy. Committees and working groups of the COAG Standing Council on Environment and Water were actively supported in order to encourage implementation of the strategy nationally.

Biodiscovery

Australia’s vast biodiversity offers huge potential for basic and applied scientific research. Investigation of the biochemical and genetic makeup of our native species can be used to produce products with social, economic and environmental value in, for example, agriculture, bioremediation, alternative fuels and for new pharmaceuticals.

The department manages a regulatory and policy framework for access to native genetic resources in Commonwealth areas and sharing benefits arising from their use. The purpose of the framework is to provide legal certainty for researchers and innovators, ensure sustainable use of biological resources, and obtain tangible benefits for Australia and the conservation of our biodiversity.

The department is responsible for providing policy advice on the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilisation (the Nagoya Protocol). Australia signed the Nagoya Protocol on 20 January 2012 and the department commenced consultations to inform the Australian Government’s decision on its ratification. To support the implementation of the Nagoya Protocol in the Pacific region, departmental staff, with support from AusAid’s Environment and Climate Change Program Fund, organised two capacity-building workshops and a number of country visits in the Pacific region.

Convention on Biological Diversity

The department plays an important role in protecting and conserving biodiversity whilst supporting Australia’s global leadership role in relation to the sustainable management of biodiversity and wildlife, domestically and internationally. The primary forum through which Australia exercises its leadership role is the Convention on Biological Diversity.

The Conference of the Parties to the Convention on Biological Diversity is supported by a number of bodies, such as the Subsidiary Body on Scientific, Technical and Technological Advice, the Working Group on Review of Implementation and a Working Group on Article 8(j), which provides advice on Indigenous issues. The department was represented at all meetings of these bodies during the year and ensured that Australia’s reputation as a constructive participant in the Convention on Biological Diversity was further enhanced.

The Conference of the Parties to the Convention on Biological Diversity meets every two years, with the eleventh meeting scheduled for October 2012.

Tasmanian Forests Intergovernmental Agreement

The landmark Tasmanian Forests Intergovernmental Agreement aims to provide certainty for Tasmania’s forestry industry, support local jobs and communities, and protect additional areas of native forests. It will help the forest industry adapt to market changes while protecting the communities and families that rely on the sector for their livelihoods. Responsibility for implementing many elements of the agreement, such as support for displaced workers, economic diversification, and formal legislative protection of reserve areas, rests with other portfolios and the Tasmanian Government. This report deals only with those items in which this department has had significant involvement.

In addition to negotiating a conservation agreement to provide interim protection for almost 430000 hectares of public native forest while the independent verification process is underway, the department’s main focus has been on supporting the Signatories to the Tasmanian Forests Statement of Principles to develop a durable agreement that optimises wood supply, conservation and community outcomes.

The Australian and Tasmanian governments are continuing to support the signatories in working together to assist the forestry industry to transition to a more sustainable long-term future and to provide protection to additional areas with significant conservation values.

Program 1.2 Environmental regulation, information and research

Australian Biological Resources Study

The Australian Biological Resources Study (ABRS) collects and disseminates information on plants, animals and other organisms found in Australia. Its range of taxonomic work and databases provides authoritative national references for species’ names. The program funds research and training in taxonomy (the science of naming, describing and classifying biodiversity). Accurate naming of species and understanding their relationships is critical for biodiversity conservation, biosecurity, and a range of industry uses such as agriculture, horticulture and forestry.

Bush Blitz is a multi-million dollar national biodiversity discovery partnership under the ABRS between the Australian Government, BHP Billiton and Earthwatch Australia. Bush Blitz is managed by the ABRS and supports key ABRS priorities, including promoting and raising the profile of taxonomy, completing the national biodiversity picture, strengthening the taxonomy funding and relationship base, and increasing Australia’s taxonomic capacity.

Bush Blitz successfully completed five expeditions across National Reserve System properties totalling 604607 hectares in Victoria, Tasmania, Western Australia and the Northern Territory. The program also funded a total of 11 capacity-building grants and tactical taxonomy contracts to participating Bush Blitz scientists.

The Atlas of Living Australia-funded National Species List project supported the ABRS in updating fauna, algae and lichen names data with the aim to include or update names information of all described species in Australia, thereby helping to meet a key ABRS objective to complete the national biodiversity picture.

Progressing the government’s international whale conservation agenda

In 2011–12 Australia worked closely with other pro-conservation countries in the International Whaling Commission (IWC) to progress IWC-agreed governance reforms and conservation initiatives, including:

advancing the Australian-initiated and IWC-endorsed Southern Ocean Research Partnership to support delivery of the highest priority non-lethal research to the IWC

working through the IWC’s Working Group on Whalewatching to determine capacity building and development needs of coastal communities looking to build and strengthen responsible whalewatching industries

working through a number of IWC working groups and committees to modernise the IWC’s governance process

chairing the Standing Working Group on Conservation Management Plans to assist the recovery of the world’s most threatened cetacean populations

preparing and submitting to the IWC’s Conservation Committee an inventory of cetacean conservation measures in the Pacific Islands Region, with a focus on Oceania humpback whales.

On 9 March 2012, Japan submitted its written submission to the International Court of Justice, in response to the Australian Government’s legal action against Japan’s so-called ‘scientific’ whaling in the Southern Ocean. The department is providing ongoing support to the Attorney-General’s Department, which is the lead agency on this issue.

Cetacean and marine mammal research grants were awarded under the Australian Marine Mammal Centre grants program (totalling $652,000); the Indo-Pacific Cetacean Research and Conservation Fund ($100,000); and the Bill Dawbin Postdoctoral fellowship ($146,000). These grants further cement Australia as a world leader in non-lethal cetacean research, contribute to cetacean conservation nationally, regionally and globally, and demonstrate that lethal research is not required to meet whale conservation management objectives.

Australia attended the Secretariat for the Pacific Regional Environment Programme workshop from 8–14 March 2012 to review and revise regional action plans for the conservation of whales and dolphins that use the region.

Whole-of-government processes were established and implemented to share information, make decisions and prepare government responses to events in the Southern Ocean during the 2011–12 Japanese Southern Ocean whaling season.

National Environmental Research Program

Research plays a vital role in delivering effective environmental management, policies and programs. The National Environmental Research Program (NERP) will provide around $20 million each year for environmental research to improve our capacity to understand, manage and conserve Australia’s unique biodiversity and ecosystems through the generation of world-class research, and its delivery to Australian environmental decision-makers and other stakeholders.

International marine conservation initiatives

The department was involved in a range of international marine conservation initiatives to support Australia’s domestic marine conservation objectives and to allow Australia to play a constructive role in the international community. Some key areas of engagement are listed below.

The Coral Triangle Initiative: the department leads Australian Government engagement as an official development partner to the Coral Triangle Initiative (CTI) on coral reefs, fisheries and food security, a partnership that brings together Indonesia, Malaysia, Papua New Guinea, the Philippines, Solomon Islands and East Timor to accelerate efforts to safeguard marine and coastal resources for current and future generations. The Coral Triangle is renowned for its outstanding marine biodiversity, containing more than half of the world’s coral reefs and over a third of its coral reef fish species. The department supported the CTI countries in adopting key governance arrangements to support delivery of the initiative.

Arafura and Timor Seas Ecosystem Action (ATSEA) Project: Australia is working closely with Indonesia, East Timor and Papua New Guinea in implementing the ATSEA Project. ATSEA is funded by the United Nations Global Environment Facility as an international waters project. The tropical Arafura and Timor seas are rich in living and non-living marine resources and provide a major shipping route. The objective of the ATSEA is to develop a framework for integrated, cooperative, sustainable and ecosystem-based management and use of the living coastal and marine resources of the Arafura and Timor seas, particularly in support of livelihoods. The department contributed to the drafting of a regional strategic action program that will guide collective action by the countries to address identified transboundary threats.

Environmental biosecurity

Statutory five-year reviews of threat abatement plans involve an examination of achievements against actions listed in the plans, and include consultation with state government agencies, researchers and other stakeholders. This year, the department commenced reviews of threat abatement plans for:

reduction in impacts of tramp ants on biodiversity in Australia and its territories infection of amphibians with chytrid fungus resulting in chytridiomycosis beak and feather disease affecting endangered psittacine species.

In supporting actions under threat abatement plans, a range of research and other projects were funded. For example, a field efficacy trial for a new feral cat bait system (Curiosity®) was undertaken in the Flinders Ranges, South Australia, to support the case for registration of this product.

Effective management of existing Commonwealth marine reserves

The department is responsible for the day-to-day management of existing Commonwealth marine reserves, including compliance and enforcement. The department collaborates with other Commonwealth agencies—in particular the Australian Customs and Border Protection Service, the Australian Fisheries Management Authority—and state agencies to ensure effective delivery of management functions. Many of these functions are delivered under formal service agreements with the Director of National Parks and the department.

A key objective for 2011–12 was the development of a network management plan for the South-east Commonwealth Marine Reserve Network, which was declared in 2007 and has been under interim management arrangements since that time. The draft management plan was completed in 2011–12 and released for public consultation in July 2012. The network management plan will provide a framework for future management planning required for new Commonwealth marine reserves identified through the marine bioregional planning process.

Development of new Commonwealth marine reserves

As part of the marine bioregional planning program, new Commonwealth marine reserves networks in the South-west, North-west, North, Temperate East and Coral Sea marine regions were identified. These Commonwealth marine reserves will play an important role in the long-term conservation of marine ecosystems and the biodiversity of our oceans. They will also meet Australia’s international and national commitments to establish a National Representative System of Marine Protected Areas.

Between May 2011 and February 2012 the Australian Government released draft Commonwealth marine reserves network proposals for public comment in each region. More than 566000 submissions were received across all regions during the consultation periods. Information received through public submissions and stakeholder consultations, together with detailed socioeconomic assessments, were considered by the Australian Government in finalising the marine reserve network proposals.

Migratory birds agreements

The sixth Meeting of Partners of the East Asian – Australasian Flyway Partnership was held from 19–23 March 2012 in Indonesia. Highlights of the meeting included:

acceptance of Rio Tinto as the 27th partner and the first corporate partner, and announcement of Rio Tinto’s proposal to develop a wetland centre in critical migratory shorebird habitat in Bohai Bay, China

a report by Dr Richard Fuller from the University of Queensland regarding an Australian Research Council collaborative grant program partly funded by the department which is investigating declines in Australia’s migratory shorebird populations

preliminary results of an International Union for Conservation of Nature (IUCN) situational analysis of tidal flat conservation in Asia.

Montara Environmental Monitoring Program

The department has continued to work with PTTEP Australasia (Asmore Cartier) Pty Ltd (PTTEPAA) to implement the Environmental Monitoring Program in response to the 2009 Montara oil spill. In 2011–12, three scientific monitoring study reports investigating effects on fish in the Timor Sea were released. The studies showed that some fish were exposed to oil and that there were some associated physiological effects, but that these effects were declining.

The department continued to work closely with the Australian Government Department of Resources, Energy and Tourism and other relevant agencies to implement the government’s response to the report of the Montara Commission of Inquiry, which was released on 25 May 2011.

Program 1.3 Carbon pollution reduction—land sector initiatives

Land Sector Carbon and Biodiversity Board

The Land Sector Carbon and Biodiversity Board was established under the Climate Change Authority Act 2011 to provide advice to government on a range of measures that will increase the land sector’s resilience to climate change and improve long-term agricultural productivity. The board will:

report annually to the relevant minister(s) for presentation to the Parliament about the operations of that year advise the relevant minister(s) on implementation of the Land Sector Package measures

advise the relevant minister(s) on performance indicators for the Land Sector Package measures.

The Land Sector Carbon and Biodiversity Board was announced by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP, the Minister for Agriculture, Fisheries and Forestry, Senator the Hon. Joe Ludwig, and the Minister for Climate Change and Energy Efficiency, the Hon. Greg Combet AM MP, on 28November2011, when the first meeting of the board was held in Canberra.

Members of the Land Sector Carbon and Biodiversity Board are jointly appointed by the Minister for Sustainability, Environment, Water, Population and Communities and the Minister for Agriculture, Fisheries and Forestry in consultation with the Minister for Climate Change and Energy Efficiency. The members of the Land Sector Carbon and Biodiversity Board are:

The Hon. Bob Debus AM (Chair) Ms Anna Skarbek Mr David Crombie Mr Joe Ross Professor Lesley Hughes.

The Land Sector Carbon and Biodiversity Board held three meetings during 2011–12 since convening in November 2011. The 2011–12 Land Sector Carbon and Biodiversity Board annual report will report separately on the operations of the board and the progress of the Land Sector Package measures.

Biodiversity Fund

The Biodiversity Fund is an ongoing program that will help improve the resilience of Australia’s landscape to climate change, enhance the environmental outcomes of Carbon Farming Initiative projects, and help landholders protect carbon and biodiversity values on their land.

The Biodiversity Fund will support initiatives that establish, restore and protect biodiverse carbon stores through:

supporting revegetation managing and protecting existing biodiverse carbon stores in areas of high conservation value, including

publicly owned native forests and land under conservation covenants or subject to land clearing restrictions supporting actions to prevent the spread of invasive species across connected landscapes.

The Biodiversity Fund Round One attracted widespread interest, with 1530 applications received from across the country requesting a total of $1.4 billion (GST exclusive).

A total of 313 projects will receive funding totalling $271 million (GST exclusive) over six years. These projects will revegetate, rehabilitate and restore around 18 million hectares of the Australian landscape.

The successful projects demonstrate the breadth of activity and innovation in the land sector, with proponents undertaking to enhance biodiversity, improve resilience and increase connectivity across our landscapes.

The design of future investment under the Biodiversity Fund is being progressed with guidance from the Land Sector Carbon and Biodiversity Board.

Regional Natural Resource Management Planning for Climate Change Fund (Stream 1)

The Regional Natural Resource Management (NRM) Planning for Climate Change Fund will help prepare Australia’s communities, industries and landscapes for the impacts of climate change. Regional NRM organisations will consider climate change risks and, in consultation with key stakeholders, develop strategies and actions to build and maintain resilient landscapes and Australia’s natural resources through updated regional plans.

The fund has two streams:

Stream 1: $28.9 million to help regional NRM organisations plan for climate change impacts by updating existing regional NRM plans to incorporate climate change mitigation and adaptation. Stream 1 will be delivered by the Department of Sustainability, Environment, Water, Population and Communities.

Stream 2: $15 million for coordination of research to produce regional-level climate change information in the form of scenarios to support medium-term regional NRM and land use planning. Stream 2 will be delivered by the Department of Climate Change and Energy Efficiency.

The Regional NRM Planning for Climate Change Fund, Stream 1 program formally commenced on 1July2012.

Principles to guide the planning process were developed during 2011–12 through an extensive consultation process, including collaboration with key stakeholders, researchers and NRM planning practitioners. The department will continue to engage and consult with stakeholders regularly throughout the implementation of the program.

Evaluation and conclusions


Monitoring, evaluation, reporting and improvement plans were completed by all Caring for our Country grantees required to do so. The Caring for our Country Report Card 2009–10 was released and, at 30 June 2012, the Caring for our Country Report Card 2010–11 was being prepared for release. Data being collated for the report card shows that strong progress continues to be made towards fully achieving all five-year outcomes.

The final report on the review of the first phase of Caring for our Country was released on 18 April 2012. The review found the initiative on track to meet its goals and to support the community to protect and conserve the environment and increase the adoption of sustainable land management practices.

Indigenous Emissions Trading

The Indigenous Fire Management project, funded under Caring for our Country, expanded the use of traditional fire management regimes across more than 200000 square kilometres of the northern savannas. Review findings indicate the Savannah Burning methodology under the Carbon Farming initiative allowed managers in northern Australia to earn carbon credits for managing the land under a traditional fire management regime.

The increased target for traditional fire management was fully met. Significant inroads were made through Caring for our Country in 2011–12. For example, four Indigenous reforestation carbon market project case studies were completed and were made publicly available (as part of the Indigenous Participation and Communication project). These will assist other Indigenous organisations interested in participating in the Carbon Farming Initiative.

No evaluation activities were completed in 2011–12 although the Indigenous Fire Management Project will finalise an evaluation component to its final report due at the end of July 2012.

Working on Country program

Working on Country Indigenous rangers work to manage environmental and cultural heritage values: 63 per cent of projects managed matters of national environmental significance (under the EPBC Act); 76 per cent of projects manage key threatening processes such as feral pigs, cats and invasive grasses; 77 per cent of projects undertake survey and management activities associated with threatened fauna species; 72 per cent of projects contribute to the transfer of Indigenous ecological knowledge; and 75 per cent of projects involve managing sites of cultural significance.

A series of independent reports completed in 2011–12 substantiate claims that, in addition to environmental outcomes, the program also delivers a range of social, cultural and economic benefits to Indigenous people.

The report An assessment of the social outcomes of the Working on Country Program was completed by Urbis Pty Ltd in May 2012. The study found that Working on Country is a highly valued program, occupying a unique space in which Indigenous and Australian government aspirations intersect.

Urbis noted that the program is a critical resource and focal point for communities providing economic development, building community capacity and social capital. It supports the emergence of positive role models and community leaders who inspire and bring hope to younger generations while respecting traditional authority and cultural knowledge.

The Urbis analysis found that key success factors include a two-way learning model, local delivery and community ownership, community capacity building, and the holistic and multi-dimensional nature of the program.

The Allen Consulting Group completed an assessment of the economic and employment outcomes of the Working on Country program in October 2011. Among a range of notable economic and employment outcomes, the study found that the true cost of the program was significantly lower (up to 23 per cent) than the budget cost due to reduced welfare and increased tax revenue generated by Indigenous participants.

Smyth and Bahrdt Consultants conducted a review of Working on Country and IPA programs through telephone interviews in 2011. The report noted that Working on Country is highly effective in providing opportunities for Indigenous Australians to manage their country and culture across a diversity of environments and tenures. The program funding provided more certainty about future management and protection of country and encouraged Elders to share their traditional knowledge with rangers.

The interviews provided other insights into the program relating to first-time employment and career pathways, the benefits of training, the importance of environmental work being undertaken by rangers, and the challenges associated with project administration.

A number of suggestions were made by interviewees for ways to further improve what they regarded as a very successful program.

Environmental Stewardship program

Monitoring and evaluation activities being undertaken by land managers demonstrate that the management actions being implemented are successfully maintaining and improving the ecological condition of targeted matters of national environmental significance on private land. Under the program remnant pockets of vegetation on private land, that may otherwise be inaccessible to government, are identified, mapped and managed. For example, as a result of the 2011–2012 funding round held in South Australia, the funded 18 projects are protecting and managing 4,162.4 hectares of iron-grass natural temperate grassland and 217.6 hectares of peppermint box grassy woodland. These are critically endangered ecological communities listed under the Environment Protection and Biodiversity Conservation Act 1999.

Reef Rescue

The Reef Plan First Report Card, produced under the joint Paddock to Reef Integrated Monitoring, Modelling and Reporting program, was released on 12August2011 by the Minister for Sustainability, Environment, Water, Population and Communities and the then Queensland Minister for Environment, the Hon Vicky Darling. The report card presents monitoring data up to 2009 and sets a baseline on management practices, catchment condition, water quality pollutant loads and reef health. Progress towards Reef Plan (including Reef Rescue) goals and targets will be reflected in future report cards, the next of which is due later in 2012.

Round One Biodiversity Fund online survey

The department conducted an online survey to gather feedback from stakeholders who participated in or engaged with Round One of the Biodiversity Fund. The survey focused on the application phase, its processes and the supporting information that was available for potential applicants.

The survey was open for four weeks and attracted 290 responses. Overall, the feedback received was positive with, for example, 90 per cent of respondents finding the Biodiversity Fund guidelines helpful. This survey collected a range of

constructive feedback and specific suggestions, and the information will be used to improve the delivery of the Biodiversity Fund in the future.

Biodiversity Fund monitoring and reporting framework

Measuring the success of the Biodiversity Fund is critical to building broader confidence and acceptance of the value of the government’s biodiversity and related conservation and NRM programs.

Tangible and well-documented project and program (including research) outputs will underpin the government’s capacity to measure and report progress towards meeting the objectives of the Biodiversity Fund. More broadly, this will enable measuring and reporting against the objectives of key overarching Australian conservation policies, including the Draft National Wildlife Corridors Plan, the National Biodiversity Strategy, the achievements of the Land Sector Package, and the Clean Energy Future plan as a whole.

Development of a Biodiversity Fund Monitoring and Reporting framework commenced in 2011–12. The framework will consider data collection strategies, types of investment needed to test and provide input on priorities, and track progress and achievements at the program level.

The framework is being developed with the assistance of the Land Sector Carbon and Biodiversity Board, including drawing on internal and external expertise to articulate the Biodiversity Fund’s structure, the links between investment priorities, the underpinning assumptions, short-term and long-term outcomes, and overarching objectives.

Review of recovery plans

The department coordinated the review of a number of measures developed under provisions of the EPBC Act aimed at protecting migratory and threatened marine species. This included the completion of the review of species recovery plans for white sharks (Carcharodon carcharias) and grey nurse sharks (Carcharias taurus). The reviews for both these recovery plans were undertaken by the department in consultation with a range of stakeholders, including state governments, fishers and conservation non-government organisations. These reviews concluded that the recovery plans should be varied to remove old actions and include new conservation actions. Recovery plans for both the white shark and the grey nurse shark are currently being revised to address the recommendations of the reviews.

Case Study 1: Southern Tanami Indigenous Protected Area (part of Working on Country)

‘Without the country our spirit will die, we got nothing left, we lose everything. Every part of land is important because Jukurrpa (Dreaming) is still there in the country today’.

Eddie Jampijinpa Robertson

A huge new reserve has been declared in central Australia, becoming Australia’s largest ever land conservation zone and creating a major link in the Trans-Australia Eco-link corridor—a globally significant wildlife corridor stretching 3500 kilometres from Arnhem Land to the Great Australian Bight.

At 10.15 million hectares the Southern Tanami Indigenous Protected Area is the same size as Portugal or Hungary.

The IPA is dominated by stunning expanses of the Tanami and Great Sandy Deserts. Rising from the arid landscape in the south are the red rocky hills of the Reynolds and Truer Ranges. Dotting the sand dunes and plains are salt pans, spinifex tussocks and flowering shrubs. Hidden beneath the desert sands are threatened animals such as the iconic walpajirri, bilby, colourful warrana, great desert skink, and jajina, brush-tailed mulgara—a small marsupial hunter.

Over 70 types of bird occur in the Southern Tanami, including those of conservation significance like the beautiful jarrurlujarrarlu, princess parrot, and larger wardilyka bustard and yankirri, emu. Following heavy rains, thousands of waterbirds flock to large inland lakes such as Yinapaka, Lake Surprise, and Yirninti Warrku Warrku, Lake Mackay, to feed and breed.

Around 100 reptile species live here leaving telltale signs in the sand, like the erratic tracks of wigi, military dragons, the sand wiggles of semi-legless lizards and the burrows of wardarpi, large sand goannas.

Traditional Owners, with Central Land Council staff, have developed a management plan to guide the work of Warlpiri Rangers in maintaining the natural and cultural assets of this vast area. There are Warlpiri Ranger teams in each of the communities in the Southern Tanami, Yuendumu, Willowra and Nyirripi.

The Warlpiri Rangers combine Aboriginal knowledge and contemporary science to look after country. For example, they learn from Elders about patch burning to rejuvenate country and reduce wildfires, as well as working with scientists, helicopters and satellite imagery to burn remote areas and monitor their fire management. Other Warlpiri Ranger tasks include surveying wildlife, monitoring bilbies, controlling weeds, maintaining water places and feral animal control.

Traditional Owners and Warlpiri Rangers also work with community-based organisations, such as schools and youth programs, to teach younger generations about land management practices such as burning country and sustainably harvesting wildlife.

The Australian Government’s Indigenous Protected Areas and Working on Country programs are supporting the Southern Tanami IPA and its rangers with $1.6 million over two years.

Like all Indigenous Protected Areas, Southern Tanami IPA is a story of partnerships—between federal and state governments and their agencies, land councils and not-for-profit organisations.

The Nature Conservancy, an international philanthropic organisation, played a key role in helping traditional owners dedicate their country for conservation. Their $500,000 investment in Southern Tanami IPA is helping to ensure this vast area will continue to be managed appropriately.

For 15 years Indigenous Protected Areas have been a conservation success story. Today they protect more than 36 million hectares across Australia.

Yinapaka (Lake Surprise) an area of high cultural and biological significance. (Central Land Council)

Case Study 2: Bush Blitz Northern Territory style

Spiders—more than 100 species—big black hairy spiders, some of them the size of a hand, four-eyed spiders, goblin spiders and more were part of the biodiversity riches found during a Bush Blitz to Fish River Station in Australia’s Top End.

Using helicopters and boats to access remote sites on this stunning 178000 hectare property, still awash from wet season rains, a team of 20 top biodiversity scientists spent two weeks in March 2012 documenting Fish River Station’s plant and animal life and looking for new species.

Their final tally included over 400 plant species, 27 species of fish, including a possible new species of the delicate blue-eye (Psuedomugil tenellus), about 15 snail species (of which one quarter are likely to be new to science), more than 20 dragonfly species, and 70 butterfly species, including the purple beak butterfly (Libythea geoffroy), an extremely rare find in the top end.

It was Bush Blitz’s fourteenth biodiversity discovery survey and the first held in the Northern Territory. This $10 million program is a partnership between the Australian Government, BHP Billiton and Australia and to date has surveyed more than 2million hectares of Australia’s National Reserve System.

In recognition of its outstanding natural values, Fish River Station was purchased for conservation in August 2010 through a groundbreaking collaboration by the Indigenous Land Corporation (ILC), The Nature Conservancy and the Pew Environment Group with assistance from the Australia Government’s Caring for our Country Initiative and support by Greening Australia. The ILC owns and manages the $13 million property and will eventually hand it back to its Traditional Owners to manage for conservation, thereby providing jobs and enabling Indigenous people to reconnect with their land.

Fish River’s extensive range of habitats includes long stretches of the Daly River—one of the Territory’s few permanent water courses—as well as billabongs fringed by savannah woodland and pockets of rainforest rising to spectacular ranges, making it a treasure trove for biodiversity scientists.

Bush Blitz manager Jo Harding said the program was all about increasing our knowledge of Australia’s biodiversity, 75 per cent of which is largely unknown.

“These surveys are always exciting because invariably we turn up new species,” Ms Harding explained. ‘Our focus tends to be on smaller creatures, such as invertebrates, as well as vascular plants and fungi, as these haven’t been studied as well as some of the larger specimens in our living world.

Since the program began in 2009, Bush Blitz scientists have discovered more than 600 new species of plants and animals—adding significantly to our knowledge about our remarkable natural environment.

‘If we don’t know what’s out there, how can we protect it?

Photo of a male Katydid (genus Orthoptera) found during Bush Blitz at Fish River Station. (Robert Whyte)

Case Study 3: Dugongs (part of Caring for our Country)

Dugongs (Dugong dugon) are iconic marine mammals that are protected under the EPBC Act as both migratory and marine species. The largest remaining populations of dugongs in the world live in Australian waters, but they are impacted by a range of ongoing threats: habitat loss, poor water quality, by-catch in set mesh nets (commercial fishing, Indigenous fishing and the Queensland Shark Control program), traditional hunting, poaching and illegal sale of meat, marine debris, and vessel activity and boat strike.

In November 2010 an intergovernmental dugong taskforce was established, involving Australian and Queensland government agencies, with the aim of promoting dugong conservation and management in Queensland. The primary role of the taskforce was to establish a comprehensive understanding of existing dugong conservation and management arrangements for the waters off Queensland, and to identify areas for improvement.

The taskforce identified that better conservation of dugong required improved cooperation between government agencies with responsibilities in dugong management. It also identified that better information on dugong biology and habitats is a priority and that Traditional Owners and key stakeholders should be more closely involved in local management initiatives.

The taskforce developed a number of recommendations, including the following (identified as being of high priority):

undertake a strategic assessment of coastal developments in the Great Barrier Reef World Heritage Area assess the impacts of toxic pollutants on dugongs and increase water quality monitoring establish a Protected Species Working Group to identify target areas for the implementation of best practice

conservation and management approaches including introduction of new net fishing regulations within the Bowling Green Bay Dugong Protection Area

develop projects to inform hunting management in the Torres Strait involving Traditional Owners.

The dugong taskforce recommendations were endorsed by the minister in December 2011. Most recommendations have since been implemented. Linked to recommendations, the Australian Government committed $5million, under the Caring for our Country program, to support sustainable dugong management by Indigenous communities in Queensland, building on the success of the Caring for our Country: Working on Country program. In the short term, this funding will provide opportunities for Indigenous people to gain training in compliance and dugong management, and in the longer term it will support the development of wider skills and capacity amongst Indigenous communities for dugong conservation.

Case Study 4: Working on Country (part of Caring for our Country)

The Working on Country program provided real employment and training opportunities for some of the most remote and economically marginalised Indigenous communities in Australia. From this base the program made a contribution

to the Closing the Gap targets and better outcomes for Indigenous peoples as it included training and education opportunities, employment and support for cultural maintenance and wellbeing, recognition and valuation of the intrinsic cultural relationship, family and community bonds between Indigenous Australians and their country, and is designed to incorporate the aspirations and ambitions of Indigenous people who want to care for their country.

The program employs over 690 Indigenous rangers to manage significant environmental services across Australia. An expansion of Working on Country to deliver an additional 50 ranger positions in the Northern Territory was announced in November 2011.

Waanyi Garawa and Garawa Rangers are two Aboriginal community ranger groups hosted under the Northern Land Council’s Working on Country project. These ranger groups provide employment outcomes and support traditional ecological knowledge in delivering mainstream environmental services. Projects such as this contribute to multiple building blocks under the Closing the Gap framework (economic participation, governance and leadership). Commencing in late 2008, through Working on Country, this project employs and provides training for seven Indigenous people on a full-time basis to manage the 16000 square kilometres of land trusts in the Gulf of Carpentaria on behalf of Traditional Owners.

For 15 years prior to 2008 the Gulf region had been plagued by large, frequent, hot wildfires occurring late in the dry season. These fires—some of which were up to 18000 square kilometres in size—burnt across property boundaries and had a major impact on the region’s biodiversity, cultural sites, infrastructure and pastoral values. During the 2009–11 early dry season periods (before the end of June), rangers worked hard in close collaboration with the community to reinstate a traditional fire regime. Using a blend of modern methods (for example, using helicopters) and traditional ecological knowledge, the program implemented a prescribed burning program of early dry season patch burning.

In October 2011 the project received additional recognition when it won a Northern Territory Landcare Award, presented for the rangers’ significant achievements in reinstating a traditional fire regime across Waanyi and Garawa country.

Results for Deliverables and Key Performance Indicators

Program 1.1: Sustainable Management of Natural Resources and the Environment

Deliverables 2011–12 Results

Complete a review of the Caring for our Country initiative, including an examination of the role of the Australian Government in natural resource management and the opportunities to integrate delivery of the initiative with other biodiversity reforms.

The Report on the review of the Caring for our Country initiative was released in April 2012.

Release the 2012–13 Caring for our Country Business Plan.

The 2012–13 Caring for our Country Business Plan was released in December 2011.

Invest in projects under the annual Caring for our Country Business Plans.

$172.4 million in projects were funded through the 2011–12 business plan for investment through to 2012–13.

Release the 2010–11 annual report card for Caring for our Country, reporting progress towards achieving outcomes.

The 2009–10 annual report card was released in January 2012. The 2010–11 annual report card is being prepared for release.

Release the 2010–11 Natural Heritage Trust Annual Report.

The 2010–11 Natural Heritage Trust Annual Report was included in the department’s annual report for 2010–11; the 2011–12 report is included in the department’s annual report for 2011–12.

Develop Indigenous partnerships that engage Indigenous communities in delivering Caring for our Country outcomes.

$245.2 million was committed over five years to June 2013 for the employment of over 690 Indigenous rangers under Working on Country, part of Caring for our Country.

Implement Indigenous Emissions Trading for Indigenous Fire Management in northern Australia and Indigenous Carbon Market

$10 million was committed over four years to June 2012. 6 projects successfully completed to facilitate Indigenous engagement in carbon markets.


Participation.

Increase the area that is protected within the National Reserve System (including Indigenous Protected Areas).

10529814 hectares were added to the National Reserve System (including 10296289 hectares of Indigenous Protected Areas) in 2011–12.

Invest in projects that address threats to the Great Barrier Reef.

$45.05 million was invested in the Reef Rescue program during 2011–12.

Invest in projects that protect or conserve the values of World Heritage areas, Ramsar wetlands, critical aquatic habitats and coastal hotspots.

In 2011–12, $3.27 million was invested to address threats from invasive plant and animal species and improve land management practices in priority Ramsar wetlands and high ecological value aquatic ecosystems across Australia. A further $7.2 million was invested to conserve the values of Natural Icons and World Heritage, and $13.99 million to improve the water quality of coastal hotspots.

Invest in Environmental Stewardship to conserve high-quality public assets on private land or affected by activities on private land.

As a result of the 2011–12 funding round held in South Australia, 860 hectares of peppermint box grassy woodland and 5223 hectares of iron grass natural temperate grassland were identified on private land. These 2 ecological communities are listed as matters of National Environmental Significance under the EPBC Act. Over 55000 hectares are now covered by the Environmental Stewardship program.

Continue to implement Australia’s Biodiversity Conservation Strategy 2010–30.

Developed landscape-scale guiding principles and criteria to help inform future biodiversity investments. Examined the financial services sector’s consideration of biodiversity in its investment activities. Led Australia’s participation in 2 plenary meetings of the Intergovernmental Platform on Biodiversity and Ecosystem Services.

Review and release Australia’s Native Vegetation Framework (NVF) 2011–31.

Reviewed and revised draft of the NVF.

Establish the National Wildlife Corridors Plan and associated management arrangements.

A draft National Wildlife Corridors Plan was developed by the National Wildlife Corridors Plan Advisory Group. The draft plan was publicly released on 8March2012, with an online submission process to gather views and ideas from the community. A total of 194 submissions were received. Stakeholder meetings were also held in all capital cities and selected regional centres. The advisory group factored stakeholder views into its revised draft for the government’s consideration.

Manage the Australian Government’s reserve estate to a high standard through the Director of National Parks.

The Director of National Parks continued to manage seven terrestrial parks and reserves, including the World Heritage listed Kakadu and Uluru-Kata Tjuta National Parks in the Northern Territory and Booderee National Park in the Jervis Bay Territory. Under delegation from the director, the Australian Antarctic Division manages the Heard Island and McDonald Islands Marine Reserve, while the Marine Division manages the remaining 25 Commonwealth marine reserves.

Establish a nationally consistent and effective legal framework for managing access to genetic resources to facilitate research and development while protecting biodiversity from over-exploitation.

In January 2012 Australia signed the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilisation. The department continued to work with state and territory jurisdictions to promote nationally consistent policy and legislation to facilitate access to genetic resources and provide legal certainty for researchers and innovators.

The protection and ongoing management of significant areas of high-conservation-value Tasmanian native forest in additional formal legislated reserves, where compatible with industry wood supply guarantees.

A conservation agreement between the Australian and Tasmanian governments and Forestry Tasmania was signed on 13 January 2012 to provide interim protection for an area of almost 430000 hectares while negotiations continue among key stakeholders to develop an agreed wood supply and conservation outcome. Lead responsibility for this element rests with the Tasmanian Government. The department has provided significant support to signatories to the Tasmanian Forests Statement of Principles to develop a durable agreement that optimises


wood supply, conservation and community outcomes. The Tasmanian Government introduced legislation to create additional reserve areas on 21 June 2012.

Key Performance Indicators 2011–12 Results

Increase the area that is protected within the National Reserve System by five million hectares a year, including Indigenous Protected Areas (IPAs).

10529814 hectares were added to the National Reserve System (including 10296289 hectares of IPAs) in 2011–12. The KPI changed in 2011–12; however, the Caring for our Country objective (2008–13) was to increase the size of the National Reserve System by 25 million hectares, or 25 percent, by 2013. With 1 year of the program remaining, a total of 17895 633 hectares has been added.

Fund activities to address threats by invasive species to allow regeneration and recovery of at least 10000 hectares of high quality native habitat or vegetation that supports critically endangered, endangered and threatened species and communities.

Over $81.6 million was invested in projects that have a significant component of weed and pest animal management through Caring for our Country business plan open-call grants. This included more than $280,000 in Caring for our Country funds to learn more about the introduced plant disease, myrtle rust, and recommend management strategies to counter its effects on the rainforests of Queensland’s World Heritage areas.

By June 2013: All Australian properties in the World Heritage List have management arrangements that meet the requirements of the World Heritage Convention. Several plans were being reviewed in 2011–2012 to ensure their continuing effectiveness.

management arrangements in place for all World Heritage areas that meet the requirements of the World Heritage Convention

funded activities to address identified key threats to the ecological character of priority Ramsar-listed wetlands

In 2011–12 $3.27million was invested to address threats from invasive plant and animal species and improve land management practices in priority Ramsar wetlands and high ecological value aquatic ecosystems across Australia.

an additional 25 per cent of (non-Ramsar) priority coastal and inland high-conservation-value aquatic ecosystems are under management

Over 18 projects have engaged local landholders and communities to improve and protect the environmental values on over 3500 hectares of coastal and inland critical aquatic ecosystems. Their actions have reduced the impact of invasive plants and pest animals and rehabilitated degraded habitats and riparian corridors.

funded activities are addressing the threats contributing to poor or declining water quality in the Gippsland Lakes in Victoria, Tuggerah Lakes Estuary in New South Wales and all other priority coastal hotspots

Strategies to improve water quality and reduce nutrient inputs from public and private land and to minimise the impacts of current and future developments have been developed. 33 projects have improved the protection and management of priority coastal hotspots. Changed management practices improved water quality in the Gippsland Lakes, which involved activities to improve irrigation practices, construction of run off dams to capture and re-use irrigation water, and improved land management practices that reduce nutrient run off.

engagement of at least 500 community organisations in coastal and marine rehabilitation, restoration and conservation actions

Caring for our Country exceeded the target of engaging at least 500 community organisations in coastal rehabilitation restoration and conservation projects under the Coastal Community Engagement target.

involvement of Indigenous organisations or groups in at least 20 projects to achieve Caring for our Country outcomes

38 Indigenous projects under the Community Action Grants totalling $786,000. 85 Working on Country ranger teams working across Australia, through which over 690 Indigenous rangers are employed.

funded activities have increased by at least 400000 hectares the area of native habitat and vegetation that is

270 projects were contracted to delivery just under 3 million hectares.


managed to reduce critical threats to biodiversity and enhance the condition, connectivity and resilience of habitats and landscapes.

Independent verification of conservation values and wood supply requirements in Tasmania.

The Independent Verification Group to submit a final report by March 2012 to the Australian and Tasmanian governments on the conservation values of nominated native forests and the wood supply requirements of the remaining forestry industry.

The Independent Verification Group provided its advice to the Tasmanian and Australian governments on 29 February 2012. This advice was released publicly by the Independent Verification Group on 23 March 2012.

Measures to facilitate implementation of Tasmanian Forests Intergovernmental Agreement:

Lead responsibility for this element rests with the Tasmanian Government. Finalisation of the guidelines for the voluntary sawlog contract buyback program is awaiting the outcome of the signatories’ negotiations.Applications called for and assessed by 30 June 2012

under a program to voluntarily buy back sawlog contracts from additional saw millers wishing to exit the industry.

Provide interim protection for the area of high-conservation-value native forest determined by the independent verification process to be compatible with industry wood supply guarantees, by negotiating and signing a Conservation Agreement with Forestry Tasmania and the Tasmanian Government by April 2012.

A Conservation Agreement between the Australian and Tasmanian governments and Forestry Tasmania was signed on 13 January 2012 to provide interim protection for an area of almost 430000 hectares of public native forest. A second Conservation Agreement will be put in place when a final wood supply and conservation outcome is agreed.

Formal legislative protection by the Tasmanian Government by October 2012, and ongoing management, of the areas of high-conservation-native forest determined by the independent verification process as compatible with guaranteed wood supply requirements.

The Tasmanian Government introduced legislation on 21 June 2012 to implement the wood supply and conservation outcomes that are subsequently agreed by signatories.

Program 1.2: Environmental Information and Research


Through the National Environmental Research Program, deliver public good-focused environmental research designed to engage with end users and support evidence-based decision making by environmental managers and policy makers.

5 multi-institutional, multi-disciplinary research hubs were established and commenced 4 year research programs to improve our capacity to understand, manage and conserve Australia’s unique biodiversity.

Develop and implement a National Plan for Environmental Information (NPEI), in conjunction with the Bureau of Meteorology.

The development of the NPEI is underway. The Environmental Information Advisory Group (supported by the Bureau of Meteorology) has developed a Statement of Requirements for Environmental Information to prioritise and guide Australian Government effort in environmental information activity. An independent review, commenced in December 2011, is examining how environmental information is acquired, managed and used by the Australian Government. Findings are expected by December 2012.

Finalise the National State of the Environment (SoE) 2011 report.

Suite of SoE 2011 products developed, including report, supplementary reports and online content at <www.environment.gov.au/soe>. Australia State of the Environment 2011 was tabled in parliament and released by the minister in December 2011.

Finalise marine bioregional plans for the Draft Marine Bioregional Plans for the South-west, North-west, North and

http://www.environment.gov.au/soe


South-west, North-west, North and East marine regions following public consultation on draft plans.

Temperate East marine regions were released for public comment. Final plans for these regions were publicly released in August 2012.

Finalise Commonwealth-proposed marine reserve networks for the South-west, North-west, North and East marine regions, including preparation of associated Regulation Impact Statements, following public consultation.

Commonwealth marine reserves network proposals for the South-west, North-west, North, Temperate East and Coral Sea marine regions were finalised and publicly released.

Continue collaboration with like-minded countries to achieve reform of the International Whaling Commission (IWC) through conservation and governance reform initiatives agreed by the IWC.

Australia has worked closely with other member countries of the IWC to provide a package of conservation and governance reform initiatives for consideration at the IWC’s 2012 annual meeting.

Provide technical support for Australia’s legal action in the International Court of Justice to stop Japanese so-called ‘scientific’ whaling.

Australia’s legal action against Japan’s program of ‘scientific’ whaling is being led by the Attorney-General’s department. The department has assisted in providing resources, policy support and technical advice.

Implement the International Whale and Marine Mammal Conservation Initiative.

The department is continuing to implement the six-year, $32million International Whale and Marine Mammal Conservation Initiative, ensuring non-lethal whale research is aligned to the government’s overarching policy objectives.

Implement best practice approaches to cetacean management within Australia in partnership with the states and Northern Territory.

Coordinated national management of cetacean conservation is ongoing through continual liaison with state and territory management agencies.

Manage the Commonwealth marine reserve estate, including by developing a framework for network-scale management, to be implemented in the South-east marine region and applied to future networks in other marine regions.

The existing Commonwealth marine reserve estate was managed through research, surveillance, compliance and monitoring and other management activities. For example, a total of 553 aerial surveillance flights were undertaken by Border Protection and the department, resulting in 577 individual visits to Commonwealth marine reserves and covering more than 507000 square kilometres of reserve area. A total of 670 permits and approvals were issued in compliance with EPBC Regulations, and in response to compliance incidents in Commonwealth marine reserves, the department executed 35 enforcement actions. A framework for marine reserve network-scale management was developed through a draft management plan for the South-east Marine Reserves Network. The draft management plan was released for public comment in July 2012.

Develop, review and implement species recovery plans and conservation advice for marine listed threatened species.

Recovery plans for all threatened cetacean species remain in place. The recovery plans for southern right whales and blue whales have undergone a process of revision and updating during 2011–12. All 7 recovery plans for marine listed threatened species are being implemented (relating to 25 of 31 marine listed threatened species). Each of these plans is also under review. A further two recovery plans are in development (relating to 6 of 31 marine listed threatened species).

Assess individual Australian fisheries against the Guidelines for the Ecologically Sustainable Management of Fisheries.

Assessments of the environmental performance of fisheries under the EPBC Act were completed for 2 Commonwealth-managed fisheries and 25 fisheries managed by the states and territories.

Work with the states and the Northern Territory, and engage internationally, to progress complementary approaches to marine issues of national interest.

A range of activities were implemented with the states, Northern Territory and international partners to progress marine conservation and management initiatives of national interest. Australia worked internationally to ensure that a number of key priorities were progressed at the Convention on the Conservation of Migratory Species of Wild Animals (CMS) 10th Conference of Parties in November 2011 in Bergen, Norway. 2 species for


which Australia is a range state were included in the Appendices to the CMS during that meeting—the eastern curlew and the giant manta ray—and a resolution proposed by Australia on marine debris was adopted.

Develop threat abatement plans for invasive species-related key threatening processes where such plans are appropriate.

The draft threat abatement plan to reduce the impacts on northern Australia’s biodiversity by the 5 listed grasses was released for public consultation, revised in light of that consultation and presented to the Threatened Species Scientific Committee for review.

Engage effectively in the national biosecurity system.

The department collaborated with the Department of Agriculture, Fisheries and Forestry and state and territory governments through the national biosecurity system, to develop national policy on pest plants, animals and diseases that cause harm to the environment. In April 2012, the Australian Weeds Committee declared an additional 12 weeds of national significance. These weeds were selected based on their economic, environmental and social impacts and their potential to spread. The department provided advice to the Department of Agriculture, Fisheries and Forestry on the environmental impact of nationally significant biosecurity threats, such as electric ants and red imported fire ants in Queensland, and myrtle rust, which shifted to a ‘transition to management program’ in July 2011.

Deliverables 2011–12 Budget Target

2011–12 Results

Researchers supported under the Australian Biological Resources Study (ABRS) National Taxonomy Research Grants Program [#].

64 67

Biodiversity research projects co-funded with other agencies [#]. 11 20

Value of contribution made by other agencies to co-funding biodiversity research projects [%].

33 36.2%



A package of governance reforms to be considered by the IWC Finance and Administration Committee (chaired by Australia) is endorsed by International Whaling Committee meeting 63.

Australia continued its close cooperation with like-minded pro-conservation countries to advance the global conservation of cetaceans. Key elements of Australia’s proposals have been presented to the IWC and endorsed at its 63rd annual meeting.

In 2011–12, a national report on the state of the environment is released.

Australia State of the Environment 2011 tabled in parliament and released by the minister in December 2011.

A national framework is in place to guide coordinated approaches to cetacean conservation.

A set of shared issues relating to cetacean conservation and management have been agreed with the states and Northern Territory. The agreed common priority areas for consideration include whale watching, ship strikes, research, guidance on strandings, entanglements and euthanasia, and conservation management planning. Work continues to develop and implement measures under each identified area.

Marine bioregional plans for the South-west, North-west, North and East marine regions are finalised.

Draft marine bioregional plans for the South-west, North-west, North and Temperate East marine regions were released for public comment. Final marine bioregional plans for these regions were publicly released in August 2012.

Proposed marine reserve networks for the South-west, North-west, North and East marine regions are finalised.

Following formal public consultations, Commonwealth marine reserves network proposals for the South-west, North-west, North and Temperate East marine regions and the Coral Sea were finalised and publicly released.

A socioeconomic assessment is undertaken in relation to proposed

Socioeconomic assessments of the final Commonwealth marine reserve proposals for the South-west, North-west, North and Temperate East marine


marine reserve networks in each marine region and published.

regions and the Coral Sea were completed by the Australia Bureau of Agricultural and Resource Economics and Sciences and were published.

A management plan for the South-East marine reserve network is in place.

Not achieved, but a draft was released for public comment in July 2012.

Threat abatement plans are in place as required to guide efforts to address invasive species-related Key Threatening Processes.

The draft threat abatement plan to reduce the impacts on northern Australia’s biodiversity by the five listed grasses was released for public consultation, revised in light of that consultation, and presented to the Threatened Species Scientific Committee for review in June 2012. The department is developing a revised draft threat abatement plan for disease in natural ecosystems caused by Phytophthora cinnamomi. The minister reviewed the threat abatement plan for predation, habitat degradation, competition and disease transmission by feral pigs and decided not to revise the plan but to pursue a collaborative national approach to mitigating the impacts of feral pigs through the Australian Pest Animal Strategy, and to develop a threat abatement advice for feral pigs. Statutory 5 year reviews were initiated for the threat abatement plans for:

reduction in impacts of tramp ants on biodiversity in Australia and its territories

infection of amphibians with chytrid fungus, resulting in chytridiomycosis

beak and feather disease affecting endangered psittacine species .

Key Performance Indicators 2011–12 Budget Target

2011–12 Results

National Environmental Research Program (NERP) research information products publicly available [%].

95 100% of research information was made publicly available.

NERP research projects that support evidence-based decision making by environmental managers and policy makers [%].

80 100% of research projects under the five NERP research hubs addressed biodiversity policy questions developed by the department, in consultation with the Great Barrier Reef Marine Park Authority. The projects will inform evidence-based decision making.

Australian Government stakeholders that support the National Plan for Environmental Information (NPEI) [%].

90 100% of Australian Government stakeholders are supporting the NPEI through their involvement in the Australian Government Environmental Information Advisory Group.

Non-lethal research activities undertaken demonstrating that research lethal to whales is unnecessary [#].

29 The department provided approximately $1.5 million in grants to support non-lethal marine mammal research nationally, regionally and globally, through the Australian Marine Mammal grants program, the Bill Dawbin Post-Doctoral Fellowship, and the Indo-Pacific Cetacean Research and Conservation Fund. Department officials attended a global review of non-lethal research into southern right whales, held in BuenosAires 13–16 September 2011. Australia continued to lead on the development and implementation of core projects of the Southern Ocean Research Partnership, including:

supporting and presenting at the Symposium and Workshop, Living Whales in the Southern Ocean, held in PuertoVaras, Chile, 27–29 March 2012

http://www.environment.gov.au/biodiversity/threatened/publications/tap/pubs/beak-feather-tap.pdf

http://www.environment.gov.au/biodiversity/threatened/publications/tap/pubs/tramp-ants.pdf

http://www.environment.gov.au/biodiversity/threatened/publications/tap/pubs/tramp-ants.pdf


2011–12 Results

preparations for a major Australian research expedition to Antarctica in the summer of 2012

optimise non-lethal research techniques through surveys of blue whales off the coast of southern Australia in January and March 2012.

Note: The 2011–2012 budget target of 29 is incorrect. A number is not applicable.

Outputs of Annual Business Agreements with state agencies for the management of existing Commonwealth marine reserves delivered [%].

100 100% Note: some priority patrol times were substituted with lower priority times due to weather and asset availability.

Recovery plans are in place as required to guide efforts to support the recovery of threatened marine species [% of threatened marine species for which recovery plans are in place].

100 100% of cetacean species listed as threatened have a recovery plan in place. Revision and update of each of plan is sequentially underway. 81% of listed threatened marine species have recovery plans in place for their protection. The development of two recovery plans have been delayed but are on track to be finalised during 2012–13.

Taxa revised or newly described under the Australian Biological Resources Study [#].

200 540 ABRS has exceeded the target of at least 200 revised or newly described taxa over the last three years.

Fisheries assessments completed within statutory timeframes [%].

100 100% Assessments have been completed within agreed timeframes for all Commonwealth-managed and state-managed fisheries requiring approvals under the EPBC Act. A total of 27 fisheries were assessed in 2011–12, with one being considered by the minister and the remainder by the departmental officers under delegation.

Program 1.3: Carbon Pollution Reduction–Land Sector Initiatives


Land Sector Carbon and Biodiversity Board The Land Sector Carbon and Biodiversity Board Annual Report 2011–12 will be tabled in Parliament as soon as practicable after the end of the 2011–12 financial year.Report annually to Parliament about the progress of the

land sector measures.

Advise the relevant minister(s) on implementation of the land sector package.

Since its establishment, the Land Sector Carbon and Biodiversity Board provided advice to minister on the implementation of a number of measures in the Land Sector Package.

Advise on coordinated research activities to reduce duplication across the research community, target gaps and leverage investment.

The Land Sector Carbon and Biodiversity Board has successfully identified areas of research collaboration across a number of measures in the Land Sector Package. Feedback from the board will also strengthen the government’s capacity to better align research with ongoing program needs and maximise investments.

Advise on key performance indicators for the land sector measure.

The Land Sector Carbon and Biodiversity Board has provided input into to the development of key performance indicators for the measures in the Land Sector Package.

Biodiversity Fund 313 projects will receive funding through Round One of the Biodiversity Fund over 6 years. These projects will revegetate, rehabilitate and restore around 18 million Increase the quantity and resilience of biodiverse

vegetation.


hectares of the Australian landscape.

Enhance landscape connectivity. 11 projects that promote landscape connectivity and align with the principles of the draft National Wildlife Corridors Plan were supported under the first round of the Biodiversity Fund. Projects selected for Round 1 will increase the size of habitat areas for a range of native species and improve connectivity between them.

Regional NRM Planning for Climate Change Fund Design and implementation concepts for the Regional Natural Resource Management (NRM) Planning for Climate Change Fund (Stream 1) underwent extensive consultation with key stakeholders, researchers and NRM planning practitioners. Independent input will help ensure the updated 56 regional NRM plans provide effective guidance for locating biodiverse carbon projects throughout the landscape. Ultimately, the plans will help build and maintain a resilient landscape by assisting land managers to reinstate and protect natural ecosystems and avoid/reduce unintended impacts on biodiversity, water and agricultural production from revegetation activities.

Ensure that the 56 regional NRM plans guide land use planning that maximises carbon co-benefits, such as landscape resilience and connectivity, and avoid/reduce unintended impacts on biodiversity, water and agricultural production from revegetation activities.

Support the restoration and protection of landscapes and improve the resilience of Australia’s landscapes to the impacts of climate change.

Guiding principles have been developed and will underpin the process to update regional NRM plans. Final updated regional NRM plans will articulate actions and strategies to support the restoration and protection of Australia’s landscapes and improve their resilience to the impacts of climate change.

Indigenous Carbon Farming Fund The Indigenous Carbon Farming Fund is on track to commence and deliver funding in 2012–13.Indigenous Australians seeking to engage in the carbon

market will have access to the knowledge and information required to help guide their decision making on whether or not to participate, and capacity-building support will be delivered to help develop and implement Indigenous carbon businesses. Legal and governance support will be provided to help develop the contractual and governance arrangements around Indigenous carbon businesses.


Land Sector Carbon and Biodiversity Board

On 28 November 2011 the Land Sector Carbon and Biodiversity Board was announced by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP, Minister for Agriculture, Fisheries and Forestry Senator the Hon. Joe Ludwig, and Minister for Climate Change and Energy Efficiency, the Hon. Greg Combet AM MP. There have since been 3 meetings held.

Establishment and operation of the Board to advise ministers on Land Sector Package.

Biodiversity Fund Biodiversity Fund Round One 2011–12 was successfully launched on 9December 2011 by the Minister for the Sustainability, Environment Water, Population and Communities, the Hon. Tony Burke MP, and the Minister for Climate Change and Energy Efficiency, the Hon. Greg Combet AM MP.

Successful launch of the Biodiversity Fund Round One 2011–12 (development phase).

Assessment of applications from Biodiversity Fund Round 1.

Applications for the Biodiversity Fund Round 1 were managed and assessed in accordance with the Commonwealth Grant Guidelines.

Development of Round 2 of the Biodiversity Fund, incorporating stakeholder input into the Biodiversity Fund’s focus, processes and materials by early 2012–13 financial year.

Planning for Round 2 of the Biodiversity Fund has commenced in consultation with the Land Sector Carbon and Biodiversity Board.


Regional NRM Planning for Climate Change Fund

The Regional NRM Planning for Climate Change Fund (Stream 1) is on track to commence and deliver funding in 2012–13.

Deliver funding to improve existing NRM plans from 2012–13.

56 regional NRM plans updated by 2015–16 to guide carbon biosequestration opportunities in the landscape.

Design and implementation concepts for the Regional NRM Planning for Climate Change Fund (Stream 1) underwent extensive consultation, including with key stakeholders, researchers and NRM planning practitioners, to ensure the fund will effectively support regional NRM organisations to update their regional NRM plans to guide carbon biosequestration opportunities in the landscape.

Indigenous Carbon Farming Fund (ICFF)

The Indigenous Carbon Farming Fund is on track to commence and deliver funding in 2012–13.

Complete program design and implementation phase for Round One of ICFF funding and open first application round by mid-2012.

Operation of the Natural Heritage Trust of Australia Act 1997This annual report is prepared in accordance with section 43 of the Natural Heritage Trust of Australia Act 1997 (the NHT Act) and reports on the operation of the NHT Act for the period 1 July 2011 to 30 June 2012. The NHT Act requires the report to include the financial statements relating to the operations of the Account and the Auditor-General’s report on the financial statements. This information is in the Financial Statements section of the annual report.

Activities carried out under the NHT Act are integral to achieving the department’s outcomes on biodiversity and ecosystems. Consequently, some of these activities are reported on elsewhere in this annual report (see Outcome 1).

Purpose and objectives of the Natural Heritage Trust The Natural Heritage Trust was established by the NHT Act to conserve, repair and replenish Australia’s natural resources. It is administered by the Natural Heritage Ministerial Board, which in 2011–12 comprised the Minister for Sustainability, Environment, Water, Population and Communities and the Minister for Agriculture, Fisheries and Forestry.

The objectives of the Natural Heritage Trust are:

Biodiversity conservation to protect and restore Australia’s terrestrial, freshwater, estuarine and marine ecosystems and habitat for native plants and animals.

Sustainable use of natural resources to use and manage Australia’s land, water and marine resources in ways that maintain and improve the productivity and profitability of resource-based industries.

Community capacity building and institutional change to support individuals, landholders, industry and communities by giving skills, knowledge, information and institutional frameworks to promote biodiversity conservation and sustainable resource use and management.


Investments through the Natural Heritage Trust in 2011–12 contributed to a number of outcomes under the Caring for our Country initiative1. The government established Caring for our Country in 2008 to:

conserve, protect and restore the Australian environment by making it healthier, better protected, well managed and resilient

secure our farming resource base and support sustainable food and fibre industries by focusing on protecting ecosystems and promoting biodiversity, clean air and water and healthy soils

ensure that, in a changing climate, we can continue to provide a diversity of ecological services that Australians rely on.

Caring for our Country is managed jointly by the Department of Sustainability, Environment, Water, Population and Communities and the Department of Agriculture, Fisheries and Forestry. Caring for our Country focuses on these national priority areas:

National Reserve System (NRS): the NRS will be expanded to ensure a comprehensive, adequate and representative system of reserves to conserve Australia’s unique landscapes, plants and animals.

Biodiversity and natural icons: in order to increase native habitat and protect biodiversity and natural icons, actions will be taken to protect World Heritage areas, tackle weeds and pest animals that threaten biodiversity, and improve outcomes for nationally threatened species and communities.

Coastal environments and critical aquatic habitats: coastal and wetland initiatives, including those under the Reef Rescue program, will protect and rehabilitate areas of critically endangered and endangered species and migratory shorebirds, improve the quality of water discharged into coastal environments and protect Ramsar wetlands.

1 The Natural Heritage Trust provides one of the funding streams to support the government’s Caring for our Country initiative.

Sustainable farm practices: farmers and land managers will be encouraged to adopt sustainable on-farm land management practices that maintain and improve production and deliver ecosystem services for the whole community.

Community skills, knowledge and engagement: investment in the skills and knowledge of Indigenous people, volunteers and communities will enable these groups to work collaboratively with regional and other organisations to deliver landscape-scale change.

Specific strategies to achieve the five-year outcomes for each of these national priority areas are outlined in Caring for our Country Outcomes 2008–2013, available on the Caring for our Country website <www.nrm.gov.au>.

The Caring for our Country report card for 2009–10 was released in January 2012. The report card detail achievements and progress on the Caring for our Country five-year outcomes, including contributions made by projects funded under the Natural Heritage Trust. Report cards are available on the Caring for our Country website <www.nrm.gov.au>.

The government recognises that many different groups must work together to bring about change and that a diverse range of stakeholders working and volunteering in NRM are making important contributions. In 2011–12, Caring for our Country projects were delivered through:

regional NRM organisations community groups non-government organisations state and territory governments and local governments Indigenous groups research organisations and academic institutions.

2011–12 Natural Heritage Trust expenditure1

Total expenditure under the Natural Heritage Trust in 2011–12 was $191.249 million. The breakdown of this expenditure by Caring for our Country national priority area is presented in Table 1. A breakdown of Natural Heritage Trust expenditure in each state and territory is presented in Table 2.

Table 1: Natural Heritage Trust expenditure by Caring for our Country national priority area 2011–12*

National priority areas and other budget items Expenses (GST exclusive) $ million

National Reserve System 43.903


Indigenous Protected Areas 12.549

Biodiversity and natural icons 22.659

Natural icons and World Heritage 6.802

Biodiversity protection 15.857

Tasmanian Devils 0.000

Cane toads 0.000

Coastal environments and critical aquatic habitats 68.319

Reef Rescue 45.055

Coastcare 13.991

Aquatic habitats 3.272

1 The Natural Heritage Trust provides one of the funding streams that support the Australian Government’s Caring for our Country initiative. The Caring for our Country Report Card 2011–12 will detail the overall achievements and progress for all the funding streams that support Caring for our Country.

National priority areas and other budget items Expenses (GST exclusive) $ million

Gippsland Lakes and Eastern Creek Wetlands 0.000

Tuggerah Lakes 5.000

Local environment initiatives - mid north coast, NSW 1.000

Sustainable farm practices 4.707

Land management change 4.707

Community skills, knowledge and engagement 13.300

Natural Resource Management facilitators 7.519

Indigenous rangers 1.092

Indigenous emissions trading scheme 2.210

Community Action Grants 2.479

Community, skills, knowledge and engagement 0.000

Regional baseline funding 0.000


Biodiversity and natural icons 0.000

Coastal environments and critical aquatic habitats 0.000

Sustainable farm practices 0.000

Community skills, knowledge and engagement 0.000

Administration/Implementation 38.361

Implementation 32.181

Monitoring, evaluation, reporting and improvement 6.180

TOTAL expenditure (GST exclusive) 191.249

* Due to rounding some figures may not add exactly to totals

Table 2: Natural Heritage Trust expenditure by state and territory 2011–12*

State/territory Expenses (GST exclusive) $ million

New South Wales 32.498

Victoria 5.011

Queensland 68.998

Western Australia 5.764

South Australia 4.635

Tasmania 4.899

Australian Capital Territory 0.626

Northern Territory 9.265

Non-state-specific 59.552

TOTAL expenditure (GST exclusive) 191.249

* Due to rounding some figures may not add exactly to totals

As at 30 June 2012 the Natural Heritage Ministerial Board had approved funding in 2012–13 of $158.013 million. Figure 1 shows the distribution of expenditure up to 30 June 2012, and approved funds for 2012–13 by Caring for our

Country national priority area. The audited financial statements for the Natural Heritage Trust are presented in the Financial Statements section of the annual report.

Figure 1: Funding by Caring for our Country national priority area at 30 June 2012

Note: Budget was transferred from the Natural Heritage Trust to the Department of Treasury under the Federal Financial Relations Act 2009 for: regional base-level funding from 2009–10; Tasmanian Devils and Tasmania World Heritage areas from 2010–11; Macquarie Island pest eradication, and animal and pest plant and disease eradication from 2011–2012. The budget transferred to Department of Treasury remains part of the Caring for our Country initiative and continues to fund projects that achieve Caring for our Country objectives.

Outcome 2: Sustainable population and communities

‘Improving environmental quality, reducing pollution and promoting a sustainable Australia.’

Improved sustainability of Australia’s population, communities and environment through coordination and development of sustainable population and communities policies; and the reduction and regulation of waste, pollutants and hazardous substances.

As a result of the Administrative Arrangements Order made on 14 December 2011, the Housing component of this Outcome (Program 2.2) was transferred to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury.


National Waste Policy, National Waste Report and product stewardship. Air quality, fuel standards and vehicle emissions. Hazardous substance regulation and management. Chemical policy and risk assessment. Protection of the ozone layer and management of synthetic greenhouse gas. Biotechnology risk assessment. National Pollutant Inventory.

Environment Quality Division

Assist state and local governments to plan and provide for employment hubs to support local jobs through the Suburban Jobs program. Develop a set of headline sustainability indicators for Australia to inform decision making and planning at national and community levels, and commence regular reporting against these indicators.


Objectives To improve the quality of the environment and reduce pollution through national frameworks, standards,

regulation, and monitoring of wastes, hazardous substances, air pollutants, ozone-depleting substances and synthetic greenhouse gases.

Improve access to information about Australia’s sustainability for use in decision-making and planning at national and community levels, particularly through a set of sustainability indicators for Australia.

Highlights The Product Stewardship Act 2011 came into effect on 8August2011, delivering on a key commitment by the

Australian Government under Strategy 1 of the National Waste Policy. The Product Stewardship (Televisions and Computers) Regulations 2011 came into effect on 8 November

2011. The Regulations provide for a National Television and Computer Recycling Scheme, funded and run by industry, which will progressively increase the national recycling rate for televisions, computers, printers and computer products to 80 percent in 2021–22.

The implementation of an equivalent carbon price on synthetic greenhouse gases from 1July2012 as part of the Australian Government’s Clean Energy Future Plan. This will create a financial incentive to reduce emissions of synthetic greenhouse gases, which have high global-warming potentials.

Detailed consultation to design the Suburban Jobs program and public release of guidelines in December 2011. The program aims to support local and state governments to plan and provide for increased employment opportunities outside the CBDs of major cities. The consultation process involved more than 90 government, community, academic and industry organisations from across Australia. Thirty-one applications were received, demonstrating strong interest from state and local governments and indicating the pressures faced by growth areas across the country.

Key achievements FluoroCycle, the voluntary scheme to reduce the amount of mercury entering the environment from the

disposal of mercury-containing lighting, had 121 signatories by the end of the 2011–12 financial year after less than two years of operation. Signatories include major national corporations, industries and government.

Environment ministers agreed to the release of a consultation Regulatory Impact Statement on packaging waste and litter in November 2011; this was publicly released in December 2011. Extensive consultation was conducted with the community, industry and government, including through public forums held in all capital cities and three regional cities. Over 3000 submissions were received before consultation closed on 30 March 2012.

The department commenced a review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 to ensure that Australia continues to meet its international obligations. An issues paper was released on 14 June 2012 for public consultation to seek feedback from stakeholders on issues that should be addressed in the review.

The department advanced work on a number of the 16 strategies under the National Waste Policy:- The department, in close consultation with the Department of Finance and Deregulation, is leading

work to promote Australian Government agency uptake of sustainable procurement under Strategy 2 of the National Waste Policy. The department is developing sustainable procurement guidance materials and a toolkit for Australian Government agencies.

- The National Waste Policy Knowledge Store was launched on the department’s website in December 2011 under Strategy 6. The knowledge store provides an opportunity to showcase the efforts of Australian, state and territory, and local governments, councils, industry, business and community towards the avoidance, reduction and re-use of waste through trialled and tested case studies.

The release of the Construction and demolition waste status report in December 2011, under Strategy 11, improved the knowledge of construction and demolition waste management across Australia.

The release of the Construction and Demolition Waste Guide in December 2011 under Strategy 11, included 15 case studies from Australian jurisdictions of companies profiting and growing while contributing to a more ecologically sustainable built environment.

An industry–government working group prepared detailed draft guidelines for a voluntary industry-led product stewardship scheme for end-of-life tyres. A draft model for a voluntary product stewardship scheme for tyres received in-principle agreement from industry stakeholders in July 2011 and from environment ministers on 16 September 2011. The draft guidelines were released in June 2012 for targeted consultation with stakeholders.

The Australian Government 2010-2011 Annual Report on the Australian Packaging Covenant Action Plan was released in May 2012 and outlines the Australian Government activities against the first year of its 2010-15 Action Plan. The report outlines the Australian Government’s activities in the first year of the plan to assist the Australian Packaging Covenant in achieving its objectives and goals to reduce the environmental impacts of packaging in Australia.

Strategies

Leading and promoting national approaches

National Waste Policy

The National Waste Policy, agreed by environment ministers in November 2009 and endorsed by the Council of Australian Governments (COAG) in October 2010, provides the strategic national framework for waste management and resource recovery to 2020.

The National Waste Policy provides the basis for strong collaboration among stakeholders to deliver effective approaches to national waste issues, to avoid the generation of waste, reduce the amount of waste for disposal, and manage waste as a resource to deliver economic, environmental and social benefits. Implementation of the policy means that all wastes, including hazardous wastes, will be managed in a way that is consistent with Australia’s international obligations and the protection of human health and the environment.

The National Waste Policy sets six key directions:

1. taking responsibility

2. improving the market3. pursuing sustainability4. reducing hazard and risk5. tailoring solutions 6. providing the evidence.

Sixteen priority strategies have been identified that build on these key directions to govern work that would benefit from a national or coordinated approach, provide focus on work occurring in individual jurisdictions and complement existing activity. The department, in collaboration with the states and territories, leads 10 of the 16 strategies.

The National waste policy implementation report 2011 reports progress against the implementation plan over the first 18 months of the National Waste Policy’s operation, to the end of 2011.

Clean Energy Future Plan

In the Clean Energy Future Plan, the Australian Government committed to reducing its greenhouse gas emissions by 5 per cent from 2000 levels by 2020. As part of delivering the Clean Energy Future Plan, the department placed an equivalent carbon price on synthetic greenhouse gases from 1 July 2012. This applies to hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride, and fire protection, refrigeration and air-conditioning equipment containing these gases.

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation was amended so that synthetic greenhouse gases manufactured in, or imported into, Australia attract a levy based on their equivalent carbon price. The Act was also expanded to include a third synthetic greenhouse gas, sulfur hexafluoride, and to cover equipment containing the hydrofluorocarbons and perfluorocarbons and sulfur hexafluoride synthetic greenhouse gases.

The price per tonne of synthetic greenhouse gas is based on the carbon price and global warming potential for each gas, relative to carbon dioxide. The equivalent carbon price will create an incentive to reduce emissions by placing a price tag on every tonne of synthetic greenhouse gases.

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation places controls on the manufacture, import and export of all ozone-depleting substances, and the synthetic greenhouse gases used to replace them, in Australia.

Synthetic greenhouse gases often replace ozone-depleting substances that have been or are being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer (the Montreal Protocol). These synthetic greenhouse gases are in turn controlled under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (the Kyoto Protocol) and, while these gases do not deplete the ozone layer, they have high global-warming potential.

The department continues to work with Australian industry and international governments to promote the responsible use of ozone-depleting substances and synthetic greenhouse gases to minimise their effect on the atmosphere. This work includes meeting Australia’s obligation to phase out the ozone-depleting substances under the Montreal Protocol, and reduce the emissions of synthetic greenhouse gases under the Kyoto Protocol.

COAG Standing Council on Environment and Water

The department supports the minister in his role as chair of the COAG Standing Council on Environment and Water.

The COAG Standing Council on Environment and Water was established following the 2010 review of the COAG ministerial council system. It incorporates the National Environment Protection Council, which is responsible for making National Environment Protection Measures. These measures provide for national coordinated action on air quality (including air toxics), diesel vehicle emissions, national pollutant inventory, the movement of controlled waste, assessment of contaminated sites, and used packaging materials.

The department contributed to the development of the National Plan for Clean Air, being progressed by the Standing Council on Environment and Water, to introduce a strategic national approach for air quality that integrates air quality standard setting and actions to reduce pollution. The plan will also bring together a strategy for responding to the review of the National Environment Protection (Ambient Air Quality) Measure.

Chemicals reform agenda

In conjunction with states and territories, the department is implementing three reforms arising out of the COAG response to the Productivity Commission’s 2008 research report on chemicals and plastics regulation, which examined Australia’s system of regulating chemicals and plastics.

The reforms are intended to address a significant gap in environmental protection and include the creation of a standards-setting body to develop national environmental risk management decisions for industrial chemicals; an assessment of the costs and benefits of introducing environmental labelling of industrial chemicals; and examination of the feasibility of developing a performance measurement framework for monitoring the impact of chemicals in the environment.

Engagement on international agreements

The department leads Australia’s participation in a number of international agreements that seek to minimise impacts from hazardous chemicals, hazardous wastes and ozone-depleting substances. Some of the major agreements are listed in Table 1.

Australia has been an active and constructive participant in multilateral meetings held during 2011–12 to progress action on these international agreements. Negotiations also continued for the development of a legally binding agreement to reduce the adverse impacts of mercury; it is expected that these negotiations will be concluded in early 2013.

Australia is exceeding its phase-out obligations under the Montreal Protocol for ozone-depleting hydrochlorofluorocarbons (HCFCs) through the operation of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. In the period to 2020, Australia will consume 60 percent less HCFCs than permitted under the Montreal Protocol and will achieve a 99.5percent reduction in 2016, effectively phasing out the import of HCFCs four years ahead of the Montreal Protocol’s 2020 phase-out obligation.

Amendments to the Rotterdam Convention, agreed in June 2011, to list three new chemicals in Annex III (aldicarb, alachlor and endosulfan) must go through Australia’s treaty-making process. This has been progressed, with the Australian Parliament’s Joint Standing Committee on Treaties agreeing on 19 March 2012 that binding treaty action may be taken. The amendments to relevant regulations oversighted by the Department of Agriculture, Fisheries and Forestry and the Australian Customs and Border Protection Service have been drafted and domestic implementation of the treaty action is expected to be completed in late 2012.

In April 2011, the Conference of the Parties to the Stockholm Convention on Persistent Organic Pollutants agreed to list the pesticide endosulfan in Annex A for elimination. The department has progressed preparation of a Regulation Impact Statement and National Interest Analysis as part of the treaty-making process.

Table 1: Major international agreements

Agreement Purpose

Basel Convention on Transboundary Movement of Hazardous Wastes and their Disposal

Management of hazardous waste

Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade

Management of hazardous chemicals

Stockholm Convention on Persistent Organic Pollutants Management of hazardous chemicals

Strategic Approach to International Chemicals Management Management of hazardous chemicals and wastes

Montreal Protocol on Substances that Deplete the Ozone Layer Protection of the ozone layer

National legislation and policy development

Product stewardship

The Product Stewardship Act 2011, which came into effect on 8 August 2011, represents a groundbreaking approach to the regulation of product stewardship in Australia. Product stewardship is an approach to reducing the environmental and other impacts of products by encouraging or requiring manufacturers, importers, distributors and other persons to take responsibility for those products during and at end-of-life. The Act delivers on a key commitment by the Australian Government under Strategy 1 of the National Waste Policy to establish a national framework, underpinned by Commonwealth legislation, to support voluntary, co-regulatory and mandatory product stewardship schemes, specifically the following:

Voluntary product stewardship involves organisations voluntarily seeking accreditation by the Australian Government for product stewardship activities that meet specified quality requirements.

Co-regulatory product stewardship involves a combination of industry action and supporting government regulation, whereby government sets the outcomes and requirements to be met while industry has flexibility in how the outcomes and requirements are achieved.

Mandatory product stewardship is where the outcomes and the requirements for meeting those outcomes are both regulated.

The first priority for implementation of the Act was to regulate end-of-life televisions and computers under the co-regulatory provisions. The Product Stewardship (Televisions and Computers) Regulations 2011 commenced on 8 November 2011 to support a National Television and Computer Recycling Scheme, funded and run by industry. Further information on the scheme is provided as Case Study 1.

On 28 February 2012 the department released a consultation paper on the Proposed Model for Accreditation of Voluntary Product Stewardship Arrangements under the voluntary provisions of the Act for public comment and feedback. Public meetings were held in Sydney, Canberra and Melbourne to facilitate face-to-face discussions between stakeholders and departmental officials on the proposed model. A total of 20 submissions were received from a wide range of stakeholders, and 42 interested parties attended the public meetings. Feedback from the consultation process will inform the development of a Ministerial Determination setting out the detailed accreditation requirements and procedures.

Hazardous waste

The department administers the export, import, and transit of hazardous waste through the Hazardous Waste (Regulation of Exports and Imports) Act 1989. The process under this Act for granting permits ensures the transboundary movement of hazardous wastes is dealt with in an environmentally sound manner, both within and outside Australia.

The department is undertaking a review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations to ensure that Australia effectively and efficiently meets its international obligations and national policy objectives for managing hazardous substances, hazardous wastes and other wastes.

National Pollutant Inventory

The National Pollutant Inventory was established under the National Environment Protection (National Pollutant Inventory) Measure 1998 to provide a database to inform the community, industry and government of the sources, types and amounts of pollutants emitted to air, water and land in Australia. The department hosts the inventory and works with states and territories to publish emissions data annually from industrial facilities, such as mines, power stations and factories, and from other sources such as households and transport-related sources.

The National Pollutant Inventory now contains 13 years of data and has over 4200 industry facilities reporting data from throughout Australia. The inventory has emission estimates for 93 toxic substances that have been identified as important due to their possible effect on human health and the environment, and the source and location of these emissions.

Chemical assessments

The department prepares scientific assessments and management advice for the Australian Government regulators, the National Industrial Chemicals Notification and Assessment Scheme and the Australian Pesticides and Veterinary Medicine Authority, on the environmental impacts of new and existing chemicals and veterinary medicines. Major work undertaken during the year included:

the preparation of a supplemental report for the review of pesticide diuron based on public submissions consultation with jurisdictions regarding the outcomes of the targeted sampling program to measure the

amounts of triclosan in waste streams the development of a landfill emissions model to better understand the fate of persistent, bioaccumulative, and

toxic substances in landfills.

Biotechnology and nanotechnology

The department assesses the environmental safety of biological products and genetically modified organisms, and advises the minister. Based on this advice the minister then advises the Gene Technology Regulator under the Gene Technology Act 2000, administered by the Department of Health and Ageing.

Fuel quality

The department administers the Fuel Quality Standards Act 2000 for national fuel quality standards and fuel quality information standards for Australia. Fuel quality standards exist for petrol, automotive diesel, biodiesel and liquefied petroleum gas (autogas), and a fuel quality information standard exists for petrol that contains ethanol.

Photo of a man recording samples for fuel quality testing. (Michelle Mc Aulay)

Used oil

The department manages the Product Stewardship for Oil program for the environmentally sustainable management and re-refining of used oil and its re-use, under the Product Stewardship (Oil) Act 2000.

The Product Stewardship (Oil) Act 2000 establishes a levy-benefit system, which is currently 5.449 cents per litre of new oil (or kilogram for greases). This levy on new oil is used to fund benefit payments to used-oil recyclers. These arrangements provide incentives to increase used-oil recycling in Australia.

Suburban Jobs

The government’s sustainable population strategy, Sustainable Australia: Sustainable communities, notes that supporting a sustainable population for Australia requires the collaborative efforts of government, industry and the community.

The Suburban Jobs Program involves the practical demonstration of place-centred policies to enhance community sustainability. The program takes an innovative approach to the pressures faced by communities as a result of rapid growth by addressing economic development, planning and infrastructure, education and training, ‘livability’ and amenity concerns. The program was designed to support the strategic planning undertaken by local and state governments in relation to the growing suburbs of Australia’s major capital cities.

Draft program guidelines were released for public comment in October 2011. Feedback on the draft guidelines informed the final program guidelines, which were released in December 2011. Thirty-one applications for funding were received.


Review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations

The department is undertaking a review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations to ensure that Australia effectively and efficiently meets its international obligations and national policy objectives for managing hazardous substances, hazardous wastes and other wastes.

The review has been initiated for a number of reasons. More than a decade has passed since the last review of the Act, during which time there have been significant changes to Australia’s international obligations, domestic legislation and national waste policy objectives. The review also provides an opportunity to consider industry experience with the operation of the Act and regulations since they were last reviewed and whether there are opportunities to reduce regulatory burdens on industry.

An issues paper was released by the department on 14 June 2012 for public consultation to seek feedback from stakeholders on issues that should be addressed in the review. Following consideration of stakeholder feedback the department will prepare a consultation paper, anticipated for release in the second half of 2012, to undertake a more detailed discussion and analysis of issues.

Case Study 1: National Television and Computer Recycling Scheme

A key commitment of the Australian Government under Strategy 1 of the National Waste Policy was to establish a national framework, underpinned by Commonwealth legislation, to support voluntary, co-regulatory and mandatory product stewardship schemes.

Electronic and electrical waste, including televisions and computers, is growing three times faster than any other type of waste. The high rate of these products going to landfill poses a number of problems for Australia, including loss of valuable materials that can be recovered (such as glass, plastics and precious metals) and risks to human health and the environment because of the hazardous substances that these products contain (such as lead, mercury and zinc). Environment ministers agreed that end-of-life televisions and computers would be the first products to be regulated under the co-regulatory provisions of the Product Stewardship Act 2011.

The Product Stewardship (Televisions and Computers) Regulations 2011 commenced on 8November 2011 to support the National Television and Computer Recycling Scheme (the scheme). The scheme is funded and run by industry.

The co-regulatory approach to product stewardship involves a combination of government regulation and industry action. Governments set the outcomes and requirements to be met, while industry has flexibility in determining how those outcomes and requirements are achieved. Under the scheme, importers and manufacturers of televisions, computers and computer products are required to be members of an approved co-regulatory arrangement.

As of 26 April 2012 three co-regulatory arrangements were approved by the minister. The administrators of these arrangements are:

DHL Supply Chain, a global logistics company Australian & New Zealand Recycling Platform Limited, an industry body representing some of the major

computer and television brands E-cycle Solutions Pty Ltd, an experienced Australian logistics company operating in partnership with major

television retailers.

These arrangements may offer membership to television and computer manufacturers and importers, and collect and recycle products on their behalf. As at 9 July 2012, importers responsible for 93 per cent of all televisions imported, and 87 per cent of computers, printers and computer products imported in 2010–11, became members of an approved co-regulatory arrangement.

An annual scheme recycling target has been set as a percentage of the television and computer waste estimated to be generated in a given year. This progressively increases from 30percent in the first target year 2012–13 to 80 per cent in 2021–22.

A material recovery target also applies each year, commencing from the 2014–15 financial year. This requires that, following recycling, the proportion of products sent for further processing to obtain useable materials is a minimum of 90 per cent.

Each co-regulatory arrangement must also provide reasonable access to collection services to metropolitan, regional and remote areas of Australia by the end of 2012. This arrangement is expected to result in around 98 per cent of the population having reasonable access to collection services. The first collection services commenced in mid 2012, for the progressive delivery of access to services by the end of 2013.

The department will commence its compliance activities from the first target year to ensure the outcomes and requirements of the regulations are met. Substantial civil penalties can be imposed if an importer or manufacturer fails to become a member of an approved co-regulatory arrangement. The minister is able to monitor the effectiveness of co-regulatory arrangements and assess the overall performance of the scheme through the provision of an audited annual report by each co-regulatory arrangement on their activities.

Case Study 2: Enforcement of the Fuel Quality Standards Act 2000

The quality of fuel in Australia is regulated by the Fuel Quality Standards Act 2000 and the Fuel Quality Regulations 2001. This legislation places an obligation on the fuel industry, including fuel suppliers, to supply fuels that meet strict environmental requirements under national fuel quality standards and fuel quality information standards.

Four fuel standards exist under the Fuel Quality Standards Act 2000, including the Fuel Standard (Automotive Diesel) Determination 2001, which came into force on 1 January 2002.

The department undertakes intelligence, monitoring, compliance and enforcement activities to monitor the quality of fuel in Australia to ensure that it meets the standards set out under the Fuel Quality Standards Act 2000. Authorised fuel inspectors undertake fuel sampling nationally, at all stages of the fuel supply chain. Samples are regularly taken from importers, refineries, distributors and service station forecourts.

Photo of a Commonwealth Fuel Quality Inspector taking fuel samples for testing. (Michelle Mc Aulay)

In October 2011, fuel inspectors conducted a site visit at HML Investments Pty Ltd (trading as Fuelways Express) in Mitcham, Victoria, which was found to be supplying non-compliant diesel.

A site is determined to be non-compliant with the Fuel Quality Standards Act 2000 where laboratory tests indicate a fuel determination has not been met, fuel quality information is not displayed or documents are not kept. The Fuel Standard (Automotive Diesel) Determination 2001 sets the requirements for diesel, including that it must not contain more than a specified amount of certain substances such as sulfur, and must not have a distillation temperature above 360°C. Testing of the diesel sample taken at the HML Investments Pty Ltd site revealed a sulfur level greater than 10mg/kg (milligrams per kilogram), a distillation temperature above 360°C, a flashpoint level lower than 61.5°C and a filter-blocking tendency greater than 2.0.

Supply of non-compliant fuel is an offence under the Fuel Quality Standards Act 2000. In all cases, a breach of the Fuel Quality Standards Act 2000 will result in a warning letter being issued to the regulated entity requesting the fuel be removed from sale, fuel quality information is displayed or documentation is maintained.

The department may seek an interim or permanent injunction from the Federal Court in some cases to ensure that non-compliant fuel is not further supplied.

The department provided a written warning and additional education material to HML Investments Pty Ltd. However, a further site visit revealed the site was continuing to sell the non-compliant diesel.

The department sought a Federal Court injunction and the court ordered that HML Investments Pty Ltd only supply diesel which meets the Fuel Standard (Automotive Diesel) Determination 2001. The injunction is in place for two years and the respondent agreed to pay costs of $16,000 to the department.

Breaches of the Fuel Quality Standards Act 2000 may also result in the department negotiating an enforceable undertaking with the regulated entity, issue of an infringement notice or civil or criminal prosecution.


Program 2.1: Management of hazardous wastes, substances and pollutants


National Waste Policy: Progressed. The Product Stewardship Act 2011 commenced on 8 August 2011, providing a national legislative framework for product stewardship.

A product notice for packaging (and subsets of packaging, such as consumer packaging and beverage packaging) was published on the department’s website on 19 December 2011 for consideration for some form of accreditation or regulation under the Act.

Nominations for appointments to the Product Stewardship Advisory Group were invited on the department’s website by expressions of interest, closing on 27 July 2012.

The department released a consultation paper on the Proposed Model for Accreditation of Voluntary Product Stewardship Arrangements under the voluntary provisions of the Act on 28 February 2012 for public comment and feedback. A total of 20 submissions were received and 42 parties attended public meetings. Feedback gained during the consultation process will inform the development of a Ministerial Determination setting out the detailed accreditation requirements and procedures.

Progress implementation of the product stewardship legislative framework.

Progress the implementation of the National Television and Computer Product Stewardship Scheme.

Progressed. The Product Stewardship (Televisions and Computers) Regulations 2011, to support the National Television and Computer Recycling Scheme, came into effect on 8 November 2011.

The minister approved DHL Supply Chain, Australian & New Zealand Recycling Platform Limited, and E-cycle Solutions Pty Ltd as administrators to provide services under the scheme, and importers representing the majority of television and computer imports have fulfilled their obligation to join a provider. The first collection services commenced in mid-2012 and the first recycling target applies from 2012–13.

Complete the annual report on the National Waste Policy.

Completed. The department completed the National Waste Policy Implementation Report 2011 on progress implementing the National Waste Policy from late 2010 to the end of 2011, released on 18 April 2012.

Administer national legislation covering fuel quality standards, the disposal and re-use of used petroleum-based oil, the export, import and transit of hazardous waste and the import, manufacture, use and destruction of ozone-depleting substances and synthetic greenhouse gases.

Ongoing. The department administered national legislation covering:

fuel quality standards for petrol, automotive diesel, biodiesel and liquefied petroleum gas (autogas)

an economic incentives package for the disposal and re-use of used petroleum-based oil under the Product Stewardship for Oil program

hazardous waste through regulation of the export, import, and transit of hazardous waste to ensure that transboundary


movements are managed in an environmentally sound manner

controls on the import, export, manufacture, acquisition, use, storage, handling and disposal of ozone-depleting substances and synthetic greenhouse gases.

Meet Australia’s obligations under international agreements on waste and hazardous substances, hazardous chemicals, synthetic greenhouses gases, and ozone-depleting substances.

Ongoing. The department fulfilled its international obligations for:

hazardous waste, through regulation of the export, import, and transit of hazardous waste to ensure that transboundary movements are managed in an environmentally sound manner

hazardous chemicals, by administering the Prior Informed Consent procedure under the Rotterdam Convention for chemicals in international trade and monitoring the levels of persistent organic pollutants in the environment as part of the performance evaluation for the Stockholm Convention

ozone-depleting substances and synthetic greenhouse gases, through import licence and quota controls.

Provide leadership in the development of national air-pollutant emission-reduction strategies and the evidence base to support these strategies.

Ongoing. The department contributed to the development of the National Plan for Clean Air to introduce a strategic national approach for air quality that integrates air quality standard setting and actions to reduce pollution. It will also bring together a strategy for responding to the review of the National Environment Protection (Ambient Air Quality) Measure.

The department provided advice to the Standing Council on Environment and Water and its subcommittees and led 2 emissions-reductions projects on non-road spark ignition engines and wood heaters.

Lead work with the states and territories to establish an environmental standards-setting body under Council of Australian Governments reforms for chemicals relating to better environmental management.

Ongoing. Consultants were engaged and commenced development of a Consultation Regulation Impact Statement (RIS) in November 2011 on options to implement a standards-setting body and national decision-making framework for managing the impacts of chemicals on the environment. Public consultation on the Consultation RIS is anticipated to occur in the second half of 2012. This work is being progressed in conjunction with states and territories and informed by bilateral consultations with key stakeholders.

Provide advice to the statutory regulators on the risk and environmental impacts of the trial and release of genetically modified organisms, nanomaterials, chemicals and biological products.

Achieved. Risk assessments and risk management recommendations to reduce environmental impacts provided within statutory timeframes for 100 % of applications received for genetically modified organisms, and for 90% of applications received for chemical substances.

Administer the National Pollutant Inventory. Administered. On 30 March 2012 the annual update of National Pollutant Inventory facility data was published. This provides data from 4295 industry facilities on emissions of 85 substances and waste transfers of 69 substances. Six technical manuals that guide industry reporting were updated.

Develop and administer regulation amendments to ozone and synthetic gas legislation and establish administrative arrangements:

to apply an equivalent carbon price to import and manufacture of synthetic

Achieved. As part of delivering the Australian Government’s Clean Energy Future Plan, the department supported the amendment of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation to place an equivalent carbon price on synthetic greenhouse gases and equipment containing these gases from 1 July 2012.


greenhouse gases, as part of the Clean Energy Future Plan

for the destruction of synthetic greenhouse gases and ozone-depleting substances.

Commenced design of a new destruction regime for synthetic greenhouse gases and ozone-depleting substances from July 2013 under the Clean Energy Future Plan.


Report annually on the implementation of the National Waste Policy.

Completed. The department completed the National Waste Policy Implementation Report 2011 on progress implementing the National Waste Policy from late 2010 to the end of 2011, released on 18 April 2012.

Publish the National Pollutant Inventory annually by 31March2012.

Achieved. The National Pollutant Inventory annual update of facility data was published on 30March 2012. The inventory now includes 13 years of data.

Finalise implementation of the national product stewardship legislative framework.

Ongoing. The National Waste Policy, agreed by all Australian environment ministers in November 2009 and endorsed by COAG in October2010, sets 6 key directions and identifies 16 priority strategies for Australia’s waste management and resource recovery from 2010 to 2020.

Environment ministers agreed that priority be given to expediting product stewardship schemes for computers and televisions, tyres, and mercury-containing lamps, in pursuing work towards a national framework for product stewardship under Strategy 1.

Finalise implementation of the National Television and Computer Product Stewardship Scheme.

Achieved. The Product Stewardship (Televisions and Computers) Regulations 2011, to support a National Television and Computer Recycling Scheme, came into effect on 8 November 2011.

The Minister approved DHL Supply Chain, Australian & New Zealand Recycling Platform Limited, and E-cycle Solutions Pty Ltd as administrators under the scheme, and importers representing the majority of television and computer imports have fulfilled their obligation to join an arrangement. The first collection services commenced in mid 2012 and the first recycling target applies from 2012–13.

Finalise regulation amendments and administrative arrangements to apply an equivalent carbon price to synthetic greenhouse gases from 1 July 2012.

Achieved. As part of delivering the Australian Government’s Clean Energy Future Plan, the department supported the amendment of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation to place an equivalent carbon price on synthetic greenhouse gases and equipment containing these gases, manufactured in, or imported into, Australia from 1 July 2012.

Finalise regulation amendments and administrative arrangements for the destruction of synthetic greenhouse gases and ozone- depleting substances by 1 July 2013.

Design of the destruction scheme commenced in 2011–12.


2011–12 Results

Used-oil recovered for re-use over a three-year average under the Product Stewardship (Oil) Act 2000 [megalitres].

>250 269

Fuel samples tested as part of the compliance program under the Fuel Quality Standards Act 2000 [#].

3000 2427

Assessments of chemical and genetically modified organisms undertaken [#].

Approx 250 Completed risk assessments of environmental impact for 320 chemicals and five genetically


2011–12 Results

modified organisms.

Licences and permits to control import and export of ozone-depleting substances and synthetic greenhouse gases issued within statutory timeframes [%].

100 100

Program 2.2 was transferred to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury on 14 December 2011.

Program 2.3: Sustainable communities


Design and commence implementation of the Suburban Jobs program that will support local and state governments to plan and provide for increased employment opportunities outside the CBDs of major cities.

Stakeholders, including state and local governments, were effectively engaged to design the Suburban Jobs program guidelines. A high degree of local and state government interest in the program was demonstrated through applications being received from all eligible states.

Develop a set of headline sustainability indicators for Australia to inform decision making and planning at national and community levels and commence regular reporting against these indicators.

The department undertook consultation with key stakeholders and experts to develop a set of headline sustainability indicators for Australia. The first public report against the indicators will be released in 2012–13.

Commence development of an online directory of sustainability information linking to existing sustainability data and reports by Australian Government agencies.

Initial scoping and conceptual work for an online directory has commenced and will continue in 2012–13.


Program guidelines completed for the Suburban Jobs program and expressions of interest received from state and local governments.

Suburban Jobs program guidelines were publicly released on 7 December 2011 and the program was opened for funding applications. The application period closed on 17 February 2012. 31 applications for funding were received. The assessment of applications was completed.

Improved access to information about Australia’s sustainability, as measured by the number of people accessing this information.

The department made significant progress in developing a set of Sustainability Indicators for Australia, including consultation with a broad range of stakeholders and experts. The Sustainability Indicators are expected to be finalised and released in the second half of 2012–13.

Operation of the Product Stewardship Act 2011The National Waste Policy, agreed by environment ministers in November 2009 and endorsed by COAG in October 2010, provides the strategic national framework for waste management and resource recovery to 2020. The policy set six key directions and identified 16 priority strategies that would benefit from a national or coordinated approach.

The Product Stewardship Act 2011 came into effect on 8 August 2011, delivering on a key commitment by the Australian Government under Strategy 1 of the policy to establish a national framework, underpinned by Commonwealth legislation, to support voluntary, co-regulatory and mandatory product stewardship schemes.

Purpose of the ActThe Product Stewardship Act 2011 provides a national framework to effectively manage the environmental, health and safety impacts of products, and in particular those impacts associated with the disposal of products.

The objectives of the Act are to:

reduce the impact that products have on the environment, throughout their life cycle reduce the impact that substances contained in products have on the environment, and on the health and safety

of human beings, throughout the lives of those products contribute to Australia meeting its international obligations concerning the impact of the products and

substances referred to above contribute to reducing the amount of greenhouse gases emitted, energy used and water consumed in connection

with products and waste from products.

Operational aspects of the ActThe Act provides for three levels of product stewardship: voluntary, co-regulatory and mandatory.

Voluntary product stewardship

The Product Stewardship Act 2011 provides for organisations to voluntarily seek accreditation by the Australian Government for product stewardship arrangements that meet specified quality requirements. The purpose of voluntary accreditation is to provide an avenue for encouraging and recognising product stewardship without the need to regulate, and to provide assurance to the community that a voluntary product stewardship arrangement is operating to achieve the outcomes it has committed to achieve. The Act provides for details of the accreditation process to be set out in a Ministerial Determination.

In February 2012 the department released the Consultation paper on the Proposed Model for Accreditation of Voluntary Product Stewardship Arrangements to obtain feedback on the proposed accreditation requirements. A total of 20 submissions were received and 42 people attended public forums held in Sydney, Canberra and Melbourne.

Feedback gained though consultation will inform the development of a Ministerial Determination and regulations for application fees. These legislative instruments are expected to be finalised by the end of 2012, with implementation of the accreditation program likely to begin in early 2013.

Co-regulatory product stewardship

The Product Stewardship Act 2011 provides for co-regulatory product stewardship, a combination of industry action and supporting government regulation, whereby government sets the outcomes and requirements to be met while industry has flexibility in how the outcomes and requirements are achieved.

The first priority for implementation of the Act was to regulate end-of-life televisions and computers under the co-regulatory provisions. The Product Stewardship (Televisions and Computers) Regulations 2011 came into effect on 8 November 2011. The Regulations provide for a National Television and Computer Recycling Scheme, funded and run by industry, which will progressively increase the national recycling rate for televisions, computers, printers and computer products to 80 per cent in 2021–22.

Under the scheme, importers and manufacturers of significant volumes of televisions, computers and computer products are required to be members of an approved co-regulatory arrangement (a membership arrangement for delivering activities or measures to achieve the outcomes of the scheme on behalf of its members). The co-regulatory arrangement must have an administrator, who applies to the minister for approval to establish an arrangement, and operates the arrangement on behalf of it members.

As at 26 April 2012, the minister approved DHL Supply Chain, the Australian & New Zealand Recycling Platform Limited, and E-cycle Solutions Pty Ltd as administrators to collect and recycle products on their behalf their members.

As at 9 July 2012, importers responsible for 93percent of all televisions imported and 87percent of all computers, printers and computer products imported in the 2010–11 financial year had become members of an approved co-regulatory arrangement.

The administrator is also responsible for ensuring all reasonable steps are taken for the arrangement to meet the outcomes set out in the regulations. The scheme has three outcomes for an annual recycling target, the provision of reasonable access to collection services, and (from the 2014–15 financial year) an annual material recovery target.

The first collection services commenced in mid-2012, for the progressive delivery of access to services by the end of 2013, and co-regulatory arrangements are required to take all reasonable steps to achieve the annual recycling target, which progressively increases from 30 per cent in the first target year 2012–13 to 80 per cent in 2021–22.

The department will also commence its compliance activities from the first target year to ensure the outcomes and requirements of the regulations are met.

Regulatory (mandatory) product stewardship

The Product Stewardship Act 2011 provides for mandatory product stewardship, where both requirements and outcomes are prescribed in regulations.

There were no regulations under development for mandatory product stewardship schemes under the Act in 2011–12.

Product notice

The Product Stewardship Act 2011 requires that where a class of products is being considered for some form of accreditation or regulation under the Act, at least 12 months notification must be given via the department’s website before regulations may be made in relation to that class of products.

On 19 December 2011 a notice was issued in relation to packaging and subsets of packaging, such as consumer packaging and beverage packaging. The issuing of this notice, which coincided with the release of a Consultation Regulation Impact Statement on packaging, was intended to cater for the possibility that regulations may be required following completion of the regulatory impact assessment process.

Product Stewardship Advisory Group

The Product Stewardship Act 2011 requires the establishment of a Product Stewardship Advisory Group. The role of the group is to provide independent advice to the minister for consideration in developing a list of products. Preparations for establishing the group are underway.

The list of products, which must be published by the minister annually, will comprise products in relation to which the minister is proposing to consider, during the next financial year, whether some form of accreditation or regulation under the Act might be appropriate. The first list of products is due for publication by 30 June 2013.

Freedom of InformationNo requests were received under the Freedom of Information Act 1982.

Administrative Appeals TribunalNo Administrative Appeals Tribunal appeals were received.

ReportingThis section fulfils the reporting requirements of the Product Stewardship Act 2011 (section107) for the period 1 July 2011 to 30 June 2012.

Financial informationThe department’s 2011–12 operating costs for the implementation and regulation of the Product Stewardship (Televisions and Computers) Regulations 2011, including staff salaries and allowances, consultancies, advertising and other related expenses, was $965,000.

Additional informationFor more information on the Product Stewardship Act 2011 go to <www.environment.gov.au/settlements/waste/product-stewardship/legislation>.

For more information on the Product Stewardship (Televisions and Computers) Regulations 2011 go to <www.environment.gov.au/settlements/waste/ewaste/publications/pubs/fs-regulations.pdf>.

For more information on the National Television and Computer Recycling Scheme go to <www.environment.gov.au/settlements/waste/ewaste>.

Operation of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 is the legislative mechanism under which Australia meets its obligations to phase out ozone- depleting substances under the Montreal Protocol, and limit greenhouse gas emissions by controlling the use of synthetic greenhouse gases under the Kyoto Protocol.

The Act controls the import, export, manufacture, acquisition, use, storage, handling and disposal of these substances. In implementing these measures, Australia has adopted a progressive approach. Australia has a longstanding agreement between state, territory and the Australian governments and industry for an accelerated phase out of ozone-depleting substances. Australia will meet its Montreal Protocol obligations on hydrochlorofluorocarbons (HCFCs) by achieving phase-out of 99.5percent in 2016, four years ahead of our obligation. In the process, in the period from 1996 to 2020 Australia will use some 60percent less HCFCs than permitted under the Montreal Protocol. Australia has adopted parallel import, manufacture and end-use controls for synthetic greenhouse gases, as these are common replacements for ozone-depleting substances. This initiative provides a consistent approach for industry, resulting in reduced emissions of these substances.

The Commonwealth Parliament passed legislation in November 2011 to amend the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 to apply an equivalent carbon price to synthetic greenhouse gases through the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 and the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995. These amendments also expanded the scope to include sulfur hexafluoride (SF6) and equipment containing synthetic greenhouse gases. These amendments became effective on 1 July 2012.

PurposeThe purpose of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 is to:

implement the provisions of the 1985 Vienna Convention for the Protection of the Ozone Layer and the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer

institute specific controls on the manufacture, import, export, distribution and use of ozone-depleting substances

encourage Australian industry to replace ozone-depleting substances and achieve a faster and greater reduction than is provided for in the Vienna Convention and the Montreal Protocol to the extent that is reasonably possible, given the availability of suitable alternative substances and appropriate technology and devices

control the manufacture, import, export and use of synthetic greenhouse gases that are used to replace ozone-depleting substances, to give effect to Australia’s obligations under the United Nations Framework Convention on Climate Change and the Kyoto Protocol

promote the responsible use of ozone-depleting substances and synthetic greenhouse gases to minimise their effect on the atmosphere.

Operation

Licensing

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 provides for a licensing system to enable Australia to meet its international obligations. The Act applies consistent controls on the use of ozone-depleting substances, and the synthetic greenhouse gases used to replace them, to minimise the emission of these substances to the atmosphere. The Act:

prohibits the import, export or manufacture of chlorofluorocarbons (CFCs), halons (halon 1211, 1301 and 2402), carbon tetrachloride, methyl chloroform, bromochloromethane and hydrobromofluorocarbons without either an essential-use licence or a used-substance licence

establishes a system of controlled substance licences and reporting requirements for the import, export or manufacture of HCFCs, methyl bromide, hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs), consistent with Australia’s obligations under the Montreal Protocol and the United Nations Framework Convention on Climate Change

will require from 1 July 2012, a controlled substances licence for the import, export and manufacture of sulfur hexafluoride

establishes a licensing system for the import of refrigeration and air conditioning equipment that contains an HFC or HCFC refrigerant charge (precharged equipment), thereby applying the same conditions and responsibilities for these substances when imported in equipment that applies to their importation in bulk form

expands licensing requirements to all equipment containing synthetic greenhouse gases from 1 July 2012, unless an exemption has been granted.

Quota

Australia has legally binding obligations under the Montreal Protocol to phase-out HCFCs, and the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 prescribes the quota for the quantity of controlled HCFCs that can be imported into Australia. The quota reduced from 70 ozone-depleting potential1 (ODP) tonnes in 2010 and 2011 to 40ODP tonnes per year for 2012 and 2013. It will further reduce by 10ODP tonnes per year in 2014 and 2015, and from 2016 2.5ODP tonnes can be imported annually for equipment servicing until completion of the phaseout in 2030.

Revenue

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 provides for administrative fees for licences to be levied at the levels set under the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995. The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 also established the Ozone Protection and Synthetic Greenhouse Gas (SGG) Account. This allows revenue from the licensing system, the cost recovery component of the import and manufacture levies and the National Halon Bank, to be directed towards the cost of administration, phaseout programs for ozone-depleting substances, emission minimisation programs and the operation of the National Halon Bank.

End-use regulations

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 creates regulation-making powers to allow the Australian Government to develop end-use controls on acquisition, purchase, sale, handling, use, storage and disposal of ozone-depleting substances and synthetic greenhouse gases.

End-use regulations have been implemented for the use of ozone-depleting and synthetic greenhouse gases in the refrigeration and air conditioning and fire protection industries. Regulations also control the use of methyl bromide as a feedstock and as a fumigant for approved critical uses, and quarantine and pre-shipment uses.

These regulations assist Australia to meet its phaseout obligations under the Montreal Protocol. They also lead to reduced emissions of ozone-depleting substances and synthetic greenhouse gases through the establishment of minimum industry standards.

The Australian Refrigeration Council (ARC) and the Fire Protection Association of Australia administer the permit schemes in the refrigeration and air conditioning industry and the fire protection industry respectively.

Product stewardship

Holders of import licences under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 are required to meet product stewardship obligations by joining an approved product stewardship scheme as a licence condition. The Refrigerant Reclaim Australia scheme obliged its members to pay a levy of $2 for every kilogram of ozone depleting substance or synthetic greenhouse gas refrigerant that they imported. This money was used to fund the collection of used refrigerant at end-of-life, and its subsequent destruction.

11Ozone-depleting potential is a comparative measure, using chlorofluorocarbon as a base level of 1. For example, 1 metric tonne of methyl bromide equals 0.6 ozone-depleting potential tonnes.

In 2011, Refrigerant Reclaim Australia collected 567 tonnes and destroyed 510 tonnes of ozone-depleting and synthetic greenhouse gas refrigerants2. Refrigerant recovery exceeded destruction in 2011 due to the increased volume of recovered material and delays in destroying waste refrigerant. The remainder is expected to be destroyed by the end of 2012. The amount of gas reclaimed and destroyed continues to increase.

Permits

Licences issued

Four types of licences can be issued under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989:

Controlled substances licences. Used to import (in bulk), export and manufacture HFCs, PFCs and/or SF6, known as synthetic greenhouse gases, HCFCs and methyl bromide.

Precharged equipment licences. Used to import equipment that contains ozone-depleting substances or synthetic greenhouse gases, including air conditioning and refrigeration equipment that contain HFCs or HCFCs.

Essential-uses licences. Since 1996 the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 has prohibited the import, export and manufacture of CFCs, halons, methyl chloroform, carbon tetrachloride, and bromochloromethane without an essential-uses licence. Such licences are only granted for a strictly limited range of essential uses approved by the parties to the Montreal Protocol.

Used-substance licences. Since 1996, the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 has prohibited the import and export of used or recycled HCFCs, methyl bromide, bromochloromethane, CFCs, halon, carbon tetrachloride and methyl chloroform without a used-substance licence.

Precharged equipment licences were previously valid for a fixed two-year period, but after amendments to the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 became effective in May 2011 these licences are now valid for two years from the date of issue, which reduces the administrative burden on business. There is one type of exemption under Section 40 of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 for essential use.

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 prohibits the import or manufacture of products listed in Schedule 4 of the Act that contain or use a specified ozone-depleting substance unless the minister grants an exemption under Section 40 of the Act or the Regulations. Only a very limited range of products will meet the exemption criteria.

There were 1767 licences active during the 2011–12 licensing period. This figure includes both new licences and those that were active for part of 2011–12 but then expired in that year. It excludes one-off licences for imports of less than five items of equipment containing less than 10kg of refrigerant.

Table 2: Active licences as at 30 June 2012

Type of licence Number

Controlled substances HCFC 8

Controlled substances HFC 31

Controlled substances methyl bromide 8

Precharged refrigeration and air conditioning equipment 823

Used substances 3

Section 40 exemptions 19

2 Reported figures are for the 2011 calendar year to align with calendar year reporting to the Montreal Protocol on Substances that Deplete the Ozone Layer.

Imports

In 2011, 70.92 ODP tonnes of bulk ozone-depleting substances were imported into Australia. A further 2.34 ODP tonnes were imported in refrigeration and air conditioning equipment.

In 2011, 6676.17 CO2e kilotonnes of bulk hydrofluorocarbons were imported into Australia. A further 3691.66 CO2e kilotonnes of hydrofluorocarbons were imported into Australia in refrigeration and air conditioning equipment.

Revenue

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 provides for licence and exemption application fees to be levied.

Table 3: Licence and exemption fees

Type of licence/exemption

Fee

Controlled substance $15,000 per licence period

Precharged equipment $3,000 per licence period. On application the fee can be reduced to $400 for single-use low volume import licence

Essential use $3,000 per licence period

Used substance $15,000 per licence period

Section 40 $3,000 per exemption period

Levies on imports and manufacturing activity under a controlled substance licence are payable each quarter under the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 and the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995. The levies are applied according to the quantity and ozone-depleting potential of HCFCs imported or manufactured, or the quantity of methyl bromide, HFCs or PFCs imported or manufactured (see Table 4). Australia has not manufactured ozone-depleting substances since 1996 and has never manufactured HFCs or PFCs. From 1 July 2012, an equivalent carbon price on synthetic greenhouse gases will be applied through the Levy Acts.

Table 4: Activity fees

Licensed activity Fee

Import HCFCs $3,000per ODP tonne

Import HFCs and PFCs $165per metric tonne

Import methyl bromide $135per metric tonne

Licence fees and levies are charged on a cost recovery basis. These fees are held in the Ozone Protection and SGG Account, which is managed by the department. The purpose of the account is to reimburse the government for the costs associated with:

administration of the Act and Regulations progressing the ozone-depleting substance phase-out and the ozone-depleting substance and synthetic

greenhouse gas emission-minimisation programs management of the National Halon Bank.

Funds received during 2011–12 from operation of the National Halon Bank and licence fees and levies are shown in Table 5.

Table 5: Ozone protection and SGG account receipts

Activity Amount received in 2011–12 ($)

Levies 1 369 103

Licence fees 3 462 868

National Halon Bank sales and services 752 690

Refrigeration fees 6 128 995

Total 11 713 656

Projects funded from the Ozone Protection and SGG Account

The department supports ozone research, including by the implementation of its Ozone Science Strategy (2009). The goal is to support nationally coordinated stratospheric ozone research in Australia that contributes to a better understanding globally of ozone protection and recovery. The activities that occur under the strategy include:

support of a group of Australian ozone scientists to cooperate and contribute relevant stratospheric ozone research internationally

an annual top-up scholarship to a PhD student undertaking research that will improve our understanding of atmospheric ozone depletion and recovery

providing guidance to the Australian Government and research organisations on priorities for ozone research and encouragement to align research priorities with Montreal Protocol priorities

seed funding to leverage additional funding for ozone research.

The Ozone Science Group is an informal group made up of Australian scientists and departmental representatives interested in stratospheric ozone science; their work assists with the implementation of the Ozone Science Strategy. The group was established in 2007 as a means to encourage cooperation and coordination among Australia’s stratospheric ozone interests. It comprises key Australian ozone scientists from the Australian Antarctic Division, Bureau of Meteorology, CSIRO Marine and Atmospheric Research, the Australian Radiation Protection and Nuclear Safety Agency, and a number of research universities. The group met four times during 2011–12 to share information about developments in ozone science and research, to coordinate their activities and to cooperate on specific projects.

The top-up scholarship for a student commencing a PhD this year was advertised and awarded to an applicant undertaking a PhD at the University of Melbourne.

The Ozone Science Strategy was reviewed in 2012 and a number of changes were made to enhance its functioning, including improving linkages to other research groups, policy making and international research, streamlined administration of the postgraduate scholarship, consideration of seed funding on a case-by-case basis, and possible assistance to ozone scientists to participate in international assessments.

CSIRO and the department continued to cooperate on monitoring global concentrations of ozone-depleting substances in the atmosphere and estimating emissions of these gases from Australia in 2011–12. These projects showed that in 2010 projected emissions of ozone-depleting substances from Australia decreased in line with our decreasing consumption of these gases.

Refrigeration and air conditioning

The Ozone Protection and Synthetic Greenhouse Gas Management Regulations1995 establish a competency-based permit scheme for the refrigeration and air conditioning industry in Australia. Four types of permits are issued:

Refrigerant Handling Licence allows the holder to handle controlled refrigerants in the refrigeration and air conditioning industry.

Refrigerant Trading Authorisation allows the holder to acquire, possess and dispose of controlled refrigerants.

Restricted Refrigerant Trading Authorisation allows the holder to acquire, possess and dispose of controlled refrigerants but only where they have been reclaimed from end-of-life refrigeration and air conditioning equipment, and only where the refrigerant is supplied to the operator of an approved refrigerant destruction facility.

Refrigeration Equipment Manufacturers Authorisation allows the holder to acquire and use controlled refrigerants in the manufacture of refrigeration and air conditioning equipment.

The operation of the permit scheme is contracted to the Australian Refrigeration Council.

Table 6: Permits issued at 30 June 2012

Permits Issued

Authorisations 17178

Licences 55620

Compliance and enforcement activitiesThe Australian Refrigeration Council conducts a compliance audit program under its contract. A range of audits are conducted, including on-site (planned, scheduled audits), remote (paper-based), desktop (telephone-based) and drive-by (randomaudits). Technical assistance is also provided to the Australian Customs and Border Protection Service where illegal import is suspected, and the ARC follows up complaints about permit holders. The ARC manages low-level compliance issues. Of the 4442 compliance audits (on-site and remote) conducted in 2011–12, 3580 licence holders were found to be compliant at the time of audit. Of the 862 licence holders found to be non-compliant, 345 became compliant as a result of compliance education activities by the ARC. Of the 517 cases that remained non-compliant, 427 will be further managed by the ARC. The ARC refers cases of extended non-compliance to the department for management. Ninety cases were referred to the department in 2011–12. Of these, 52 achieved compliance, with the remaining cases still in progress at the end of 2011–12.

Table 7: Number of audits conducted in 2011–12

Audits Number

On-site and remote audits 4442

Drive-by audits 1774

Desktop audits 2

Assisting Customs 11

Complaint-related site visits 45

Finances

The permit system operated by the ARC collected $6,139,156 in permit application fees to 1 July 2012. The department paid the ARC $4,631,274 (GST exclusive) in operating expenses over the same period.

Fire protection

The Ozone Protection and Synthetic Greenhouse Gas Management Regulations established a competency-based permit scheme for the fire protection industry in Australia for systems using halocarbon-extinguishing agents. Four types of permits are issued:

Authorisations allow the holder to acquire, possess and dispose of controlled fire extinguishing agents. Licences allow the holder to handle controlled fire extinguishing agents in the fire protection industry. Halon special permits allow the holder to possess halon that is for use in fire protection equipment.

Special purpose exemptions entitle the person to the privileges of holders of one or more of the above permits as specified in the exemption.

Table 8: Permits issued at 30 June 2012

Permits Issued

Authorisations 76

Licences 1311

Halon special permits 35

Special purpose exemptions 0

Finances

The permit system operated by the Fire Protection Association of Australia collected $162,900 to 30 June 2012 in permit application fees. The department paid the Fire Protection Association of Australia $436,391 in operating expenses over the same period.

Montreal Protocol’s Multilateral Fund

Australia provides financial assistance through the Montreal Protocol’s Multilateral Fund to assist developing countries to comply with the phaseout requirements under the protocol. In 2011, Australia was one of 14 members of the Executive Committee of the Multilateral Fund. The committee oversees governance of the funding, including considering project approvals and outcomes. Australia chaired the Executive Committee in 2011. Australia continued to participate in the Executive Committee in 2012, sharing membership with Canada.

Operation of the Hazardous Waste (Regulation of Exports and Imports) Act 1989The Hazardous Waste (Regulation of Exports and Imports) Act 1989 enables Australia to meet its obligations under the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (the Basel Convention). The Basel Convention regulates the international movements of hazardous wastes.

The Basel Convention was developed by the United Nations Environment Programme and adopted on 22 March 1989. Australia ratified the Basel Convention on 5 February 1992, and it came into effect on 5 May 1992. The Basel Convention imposes two kinds of obligations on members. Members are required to:

control the export and import of hazardous and other wastes (household wastes or incinerator residues), provide for notification and consent as required by the Basel Convention, and track shipments of waste to their environmentally sound disposal

minimise the movement and generation of hazardous and other wastes and ensure that hazardous wastes are disposed of in an environmentally sound manner.

Purpose of the ActThe purpose of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 is to regulate the export, import and transit of hazardous waste and to ensure that exported, imported or transited waste is managed in an environmentally sound manner.

Operational aspects of the ActIn 2011–12 the department received 42 permit applications under the Hazardous Waste (Regulation of Exports and Imports) Act 1989 for transboundary movement of hazardous wastes. These comprised 16 export, 19 import and seven transit applications. Of the 42 applications, 19 were granted permits, two were refused a permit, two were withdrawn and 19 were still being processed as at 30 June 2012.

All permit applications were processed within statutory timeframes.

Details on each permit application and decision under the Hazardous Waste (Regulation of Exports and Imports) Act 1989 is published in the Australian Government Gazette.

Compliance and enforcementThe department continued to strengthen its enforcement activities and acted in cooperation with the Australian Customs and Border Protection Service to prevent illegal traffic in hazardous waste.

Those with information that may be helpful in stopping illegal exports can contact the department’s hazardous waste unit by calling 1800 803 772 or emailing [email protected].

Freedom of InformationThe department provided information for one request under the Freedom of Information Act 1982.

Administrative Appeals TribunalIn 2011–12, two applications were made to the Administrative Appeals Tribunal for the review of decisions not to grant a permit under the Hazardous Waste (Regulation of Exports and Imports) Act 1989. One was withdrawn by the

applicant, while another was adjourned by the Administrative Appeals Tribunal, at the request of the applicant, until August 2012.

ReportingThis section fulfils the reporting requirements of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 (section 61) for the period 1 July 2011 to 30 June 2012.

An annual report on the implementation of the Basel Convention by Australia was submitted to the Secretariat of the Basel Convention during 2011–12. National reporting under the Basel Convention is on a calendar year basis. Published reports are available on the Basel Convention’s website at <www.basel.int/Countries/NationalReporting/StatusCompilations/tabid/1497/Default.aspx>.

Monitoring and evaluationThe department is undertaking a review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations to ensure that Australia effectively and efficiently meets its international obligations and national policy objectives for managing hazardous substances, hazardous wastes and other wastes.

An issues paper was released by the department on 14 June 2012 for public consultation to seek feedback from stakeholders on issues that should be addressed in the review. Submissions closed on 12 July 2012. Twelve submissions were received from stakeholders. Following consideration of stakeholder feedback the department will prepare a consultation paper, anticipated for release in the second half of 2012, to undertake a more detailed discussion and analysis of issues.

Financial informationSection 32 of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 prescribes fees for the lodgement of permit applications. This year’s income from fees totalled $14,890.

CommitteesSection 58E of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 requires that the minister must establish a committee, to be known as the Hazardous Waste Technical Group, which may be called upon to advise on technical issues associated with the operation of the Act. The Hazardous Waste Technical Group did not meet during 2011–12 as there were no technical issues associated with the operation of the Act that required the group’s advice.

Additional information Information on the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and its operation is available at <www.environment.gov.au/settlements/chemicals/hazardous-waste>.

Permit applications and decisions under the Hazardous Waste (Regulation of Exports and Imports) Act 1989 are published in the Commonwealth Gazette, available at <www.gazettes.ag.gov.au/portal/govgazonline.nsf/0/BEDEBB78DCBA9E4ECA256EA900043135?OpenDocument>.

Operation of the Fuel Quality Standards Act 2000The Fuel Quality Standards Act 2000 is the legislative basis for national fuel quality and fuel quality information standards for Australia. The Fuel Quality Standards Act 2000 regulates the quality of fuel supplied in Australia and ensures that, where appropriate, information about fuel is provided at the point at which the fuel is supplied.

Fuel quality standards exist for petrol, automotive diesel, biodiesel and liquefied petroleum gas (autogas). A fuel quality information standard exists for ethanol, when blended with petrol.

The Fuel Quality Standards Act 2000 sets out criminal and civil penalties for non-compliance with Australian fuel quality standards. The department’s monitoring, compliance and enforcement team takes fuel samples for testing against the appropriate standard and investigators take any necessary enforcement action. For example, the department may negotiate an enforceable undertaking, or seek an interim or permanent injunction from the Federal Court.

The Fuel Standards Consultative Committee is an advisory body to the minister on fuel matters. The committee was established under the Fuel Quality Standards Act 2000 and the minister appoints members from each state and territory, the Australian Government and various organisations with interests in fuel production and supply, vehicle manufacturing, consumer concerns and environmental protection.

When a state or territory has fuel quality standards in place, the Australian Government standards operate concurrently. State or territory standards apply when they regulate a fuel characteristic not covered by the Australian Government standards.

The minister may vary fuel standards on a short-term basis and for longer periods after consultation with the committee.

The minister must keep a Register of Prohibited Fuel Additives. There are currently no entries on the register.

Under the Fuel Quality Standards Act 2000, fuel suppliers must keep appropriate records and provide annual statements to the department.

Purpose of the ActThe purpose of the Fuel Quality Standards Act 2000 is to regulate the quality of fuel in Australia to:

reduce the level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems

facilitate the adoption of better engine and emission control technology and allow for more effective operation of engines

ensure that appropriate information about fuel is provided when it is supplied to the public.

The Fuel Quality Standards Regulations 2001 cover:

regulation of fuel and fuel additives operations of the committee publication of notices about entries in the Register of Prohibited Fuel Additives enforcement record keeping and reporting obligations.

Operational aspects of the Act

Fuel quality standards

Fuel Quality Standard Determinations set specific standards for petrol, automotive diesel, biodiesel and autogas. The determinations specify standards for a range of parameters, which address both environmental and operational performance.

The review of the Fuel Standard (Autogas) Determination 2003 progressed during 2011–12, following further consultation with the liquid petroleum gas industry.

The development of a fuel quality and fuel quality information standard for ethanol (E85) automotive fuel progressed during 2011–12 after submissions were made on the public position paper in June and July 2011.

The department released a discussion paper on the development of a diesel-biodiesel blend (B20) fuel quality standard in March 2012. Submissions regarding the selection, specification and test methods are being considered.

Amendments to the Fuel Quality Standards Regulations 2001

The department is pursuing a series of amendments to the Fuel Quality Standards Regulations 2001 to support the 2009 amendments to the Fuel Quality Standards Act 2000 and respond to emerging trends in the fuel industry with fuel blends. The amendments to the Fuel Quality Standards Regulations 2001 are expected to be finalised in the second half of 2012.

Compliance and enforcementThe department undertakes intelligence, monitoring, compliance and enforcement activities to detect and address non-compliance under the Fuel Quality Standards Act 2000 and the Fuel Quality Standards Regulations 2001.

Authorised fuel quality inspectors conduct site visits across Australia at all stages of the fuel supply chain—including importers, refineries, distributors and service station forecourts—to test fuel against the relevant standards, inspect ethanol-blend petrol labels and check fuel delivery documentation. The site-visits program uses information provided by members of the public and industry as important intelligence for informing monitoring and enforcement activities.

Fuel samples are tested on-site for compliance with the standards and, if required, are further tested at an independent laboratory accredited by the National Association of Testing Authorities. Testing methods are accredited to international standards.

A site is determined to be non-compliant with the Fuel Quality Standards Act 2000 where laboratory tests indicate a fuel determination has not been met, fuel quality information is not displayed, documents are not correct, or documents are not maintained.

In all cases, a breach of the Fuel Quality Standards Act 2000 will result in a warning letter being issued to the regulated entity requesting that the fuel no longer be supplied, fuel quality information be displayed, or delivery documentation be corrected and/or maintained.

In some cases, the department may negotiate an enforceable undertaking, or seek an interim or permanent injunction from the Federal Court to ensure that non-compliant fuel is not further supplied.

For example, on 17 October 2011, the Federal Court endorsed an undertaking made by Go Joe’s Pty Ltd, Sefton, NSW, to not supply non-compliant diesel for two years and to pay legal costs of $14,500 to the department.

On 23 November 2011, a Federal Court injunction was sought and HML Investments Pty Ltd was ordered to only supply diesel which meets the Fuel Standard (Automotive Diesel) Determination 2001. The injunction is in place for two years and the respondent agreed to pay costs of $16,000 to the department.

Breaches may result in the issue of an infringement notice or prosecution. Successful prosecutions result in a public announcement being made by the department.

The department may also disclose information to other government agencies, including state and territory consumer protection agencies and the Australian Taxation Office.

Sites found to have breached the Fuel Quality Standards Act 2000 will be monitored for ongoing compliance and may be the subject of additional site visits.

Table 9: Fuel sampling statistics

2010–11 2011–12

Compliance incident reports 207 282

Site visits 623 1071

Number of compliant tests 2896 2345

Fuel quality breach 31 35

Ethanol-blend petrol labelling breach 56 47

Documentation requirements breach* 145 660

* The Fuel Quality Standards Act 2000 and Fuel Quality Standards Regulations 2001 require operators of service stations to keep and maintain records, including delivery documentation, stock reconciliation and fuel testing records in relation to the supply of fuel, at the premises where the fuel is supplied for two years. Fuel suppliers must also provide documentation to the supply site within 72 hours of the delivery of fuel.

Audits of the terms and conditions of approvals to vary fuel standards under Section 13 of the Fuel Quality Standards Act 2000 are also conducted by fuel quality inspectors. During 2011–12 four audits were completed.

Freedom of InformationNo freedom of information requests were received during 2011–12 involving the Fuel Quality Standards Act 2000 and Regulations.

Administrative Appeals TribunalNo Administrative Appeals Tribunal appeals were received.

ReportingThis section fulfils the reporting requirements of the Fuel Quality Standards Act 2000 (section71) for the period 1 July 2011 to 30 June 2012.

Monitoring and evaluationThe next statutory review of the Fuel Quality Standards Act 2000 is due to commence in the second half of 2012.

Financial information

The department’s 2011–12 operating costs for the Fuel Quality Standards Act 2000, including staff salaries and allowances, consultancies, advertising and other related expenses, were $2,902,422.

CommitteesSection 24 of the Fuel Quality Standards Act 2000 establishes the Fuel Standards Consultative Committee as a formal consultation mechanism. The committee is required to include one representative from each state and territory and the Australian Government. It must also include one person who represents fuel producers, one representing a non-government body with an interest in the protection of the environment, and one representing the interests of consumers. The minister may also appoint other members to the committee. In 2011–12 the committee included representatives from the motor vehicle manufacturing industry, independent fuel importers and suppliers, the alternative and renewable fuels industry, and the truck manufacturing industry (see Table 10).

Table 10: Committee membership 2011–12

Name Representing Start date Finish date

Phil Allan Automotive industry 24/08/2011 18/04/2012

Paul Barrett Fuel producers 09/07/2010 09/07/2013

Fraser Brindley Victorian Government 02/12/2011 02/12/2014

David Bowman Environment non- government organisation 09/07/2010 09/07/2013

Heather Brodie Alternative fuels industry 16/11/2009 16/11/2012

Ann-Louise Crotty

New South Wales Government 13/07/2009 13/07/2012

Matthew Dadswell

Chair, Australian Government Department of Sustainability, Environment, Water, Population and Communities

13/12/2011 13/12/2014

Anne-Marie Delahunt

Chair, Australian Government Department of Sustainability, Environment, Water, Population and Communities

09/07/2010 13/12/2011

James Hurnall Automotive industry 29/05/2012 29/05/2015

Bob Hyde Tasmanian Government 16/11/2009 16/11/2012

Guy Macklan Trucking industry 09/07/2010 09/07/2013

Mike McCullagh Independent fuel producers 09/07/2010 09/07/2013

Scott McDowall Queensland Government 09/07/2010 09/05/2012

Craig Newland Consumer interests 17/06/2008 24/08/2014

Jane O’Sullivan Chair1, Australian Government Department of Sustainability, Environment, Water, Population and Communities

01/06/2012 30/08/2012

David Power Australian Capital Territory Government 16/11/2009 16/11/2012

Linda Rasmussen Australian Government Department of Infrastructure and Transport 24/08/2011 24/08/2014

Greg Scott Northern Territory Government 13/07/2009 13/07/2012

Michael Sheldrick

Australian Government Department of Resources, Energy and Tourism 13/07/2009 30/05/2012

Robin Smit Queensland Government 25/05/2012 25/05/2015

Kelvyn Steer South Australian Government 16/11/2009 16/11/2012

Diana Wright Chair2, Australian Government Department of Sustainability, Environment, Water, Population and Communities

01/11/2011 01/02/2012

1 Appointed as temporary Chair for the June 2012 meeting as the substantive Chair Matthew Dadswell was unavailable.2 Appointed as temporary Chair for the November 2011 meeting as the substantive Chair Anne-Marie Delahunt was unavailable.

Notes:

During 2011–12 the committee had two formal meetings, one in November 2011 and one in June 2012. The committee also considered several issues out of session.

Under section 24A the minister must consult the committee before:

granting an approval making a fuel quality standard making a fuel quality information standard deciding whether to enter a fuel additive to, or remove a fuel additive from, the Register of Prohibited Fuel

Additives preparing guidelines for more stringent fuel standards.

Under section 13 of the Fuel Quality Standards Act 2000, the committee also provides advice on applications to vary fuel standards, including recommendations on the conditions to be applied. In 2011–12 the committee considered and made recommendations on eight new applications and 22 extensions of existing approvals under section 13.

Table 11: Approvals granted in 2011–12 (See foot of table for glossary of terms)

Name of approval holder Period of operation

Approved Variation of Fuel Standard: refer to the gazetted grant of approval for complete approval and conditions

Amendment

Australian Biodiesel Group Ltd; Australian Renewable Fuels Adelaide Pty Ltd; Australian Renewable Fuels Picton Pty Ltd; Biodiesel Producers Ltd Central State Fuels Pty Ltd; Eagle Fuels Pty Ltd, Mogas Regional Pty Ltd; Eastern Great Southern Petroleum EnviroOil Co of Australia Pty Ltd; Freedom Fuels Terminalling Pty Ltd.

From 01/07/2012 to 01/07/2014.

Extension of approvals, from 1July 2012 to 30June 2014: variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20%v/v.

Amendment of B20 approvals extending end date to 30 June 2014.

Future Fuels Australia Pty Limited Kifuel Pty Ltd Logicoil Pty Ltd (formerly Pre-Logic Pty Ltd); Macquarie Oil Company Mogas Regional Pty Ltd; Neumann Petroleum Pty Ltd; North Queensland and Pacific Biodiesel Pty Ltd; Pro Green Biofuels Pty Ltd; North Queensland and Pacific Biodiesel Pty Ltd; Pro Green Biofuels Pty Ltd; Smorgon Fuels Pty Ltd; Southern Renewable Fuels Pty Ltd; The Biodiesel Station Pty Ltd; The National Biofuels Group Pty Ltd

Gull Petroleum (WA) Pty Ltd From 01/07/2012 to 30/06/2013.

Extension of approval, from 1 July 2012 to 30 June 2013: variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v.

Amendment of B20 approval extending end date to 30 June 2013.

Consolidated Biodiesel Pty Ltd From 27/06/2012 to 30/06/2014.

Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v.



Amendment

Caltex Australia Petroleum Pty Ltd From 24/05/2012 to 24/05/2014.

Variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: a maximum of 5% biodiesel content (B5) containing a minimum derived cetane number (DCN) of 46 and a maximum density of 852 kg/m3; and more than 5% but no greater than 20% biodiesel content (B20) containing a minimum DCN of 46 and a maximum density of 860 kg/m3.

Mobil Oil Australia Pty Ltd From 24/05/2012 to 24/05/2014.

Variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: a maximum of 5% biodiesel content (B5) containing a minimum DCN of 46 and a maximum density of 852 kg/m3; and, more than 5% but no greater than 20% biodiesel content (B20) containing a minimum DCN of 46 and a maximum density of 860 kg/m3.

VP Racing Fuels Pty Ltd From 11/11/2011 to 31/12/2012.

Variation of approval, removing 1 regulated person from the 20 January 2011 approval to supply specialist leaded and unleaded racing fuels.

Removal of 1 regulated person.

BP Australia Pty Ltd From 25/01/2012 to 31/12/2012.

Variation of approval, adding 8 regulated persons to the 20 January 2011 approval to supply leaded racing fuel (avgas).

Addition of 1 regulated person.

BP Australia Pty Ltd From 25/01/2012 to 31/12/2012.

Corrigenda variation of approval, adding 8 regulated persons to the 20 January 2011 approval to supply leaded racing fuel (avgas).

Addition of 8 regulated persons.

Gull Petroleum (WA) Pty Ltd From 20/12/2011 to 30/06/2012.

Variation of approval, adding 1 regulated person to the 26 February 2009 approval to supply diesel with a biodiesel content of more than 5% but no greater than 20% v/v.


VP Racing Fuels Pty Ltd From 11/11/2011 to 31/12/2012.

Variation of approval, adding 1 regulated person to the 20 January 2011 approval to supply specialist leaded and unleaded racing fuels.


The Shell Company of Australia Ltd From 11/10/2011 to 31/10/2012.

Variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: 5% biodiesel (B5), with a minimum DCN of 46 and a maximum density of 852 kg/m3; and more than 5% but no greater than 20% biodiesel (B20), with a minimum DCN of 46 and a maximum density of 858 kg/m3.

Kifuel Pty Ltd From 16/08/2011 to 30/06/2012.

Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v.



Amendment

Petrochem Carless Limited From 16/08/2011 to 15/09/2011.

Variation to the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist racing fuel containing MTBE up to 14% v/v and phosphorus up to 0.0260 g/L.

The Shell Company of Australia Ltd From 16/08/2011 to 30/06/2013.

Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel in the Cocos (Keeling) Islands containing up to 40 mg/kg sulfur.

IOR Energy Pty Ltd From 16/08/2011 to 31/12/2013.

Variation of the Fuel Standard (Automotive Diesel) Determination to supply diesel with minimum density of 790 kg/m3 to commercial users for underground mining use and to supply of diesel with minimum density of 800mg/kg3 and maximum sulfur content of 50 mg/kg for commercial users through IOR’s outlets in regional areas of western Queensland and north-western New South Wales.

Glossary of terms

Avgas Aviation-grade leaded petrol, usually containing levels of lead between 0.56g/L and 0.85g/L. May be supplied under approval, often as racing fuel 100, the 100 being the octane rating of the fuel.

B5 Blends of diesel and biodiesel where the biodiesel component is no greater than 5 per cent.

B20 Blends of diesel and biodiesel where the biodiesel component is above 5percent but no greater than 20 per cent.

DCN Derived cetane number.

E85 Blend of between 70percent and 85percent ethanol, with the remainder petrol.

g/L Grams per litre.

kg/m3 Kilograms per metre cubed.

mg/kg Milligrams per kilogram.

MTBE Methyl tertiary butyl ether.

Regulated person A person, other than the approval holder, authorised to supply fuel in accordance with the conditions of an approval to vary a fuel standard.

v/v Volume by volume.

Operation of the Product Stewardship (Oil) Act 2000 The Product Stewardship for Oil program is underpinned by a package of legislation and associated Regulations.

The Product Stewardship (Oil) Act 2000 is the primary piece of legislation that establishes the general framework and benefit entitlements. The policy settings for the stewardship arrangements are established and governed by the minister. The Act also establishes the Oil Stewardship Advisory Council.

The Product Stewardship (Oil) Regulations 2000 prescribe the product stewardship benefit rates.

The Excise Tariff Amendment (Product Stewardship for Waste Oil) Act 2000 and the Customs Tariff Amendment (Product Stewardship for Waste Oil) Act 2000 and associated Regulations establish the product stewardship levy.

The Product Stewardship (Oil) (Consequential Amendments) Act 2000 contributes to the establishment of the levy and the general administrative provisions in the Product Grants and Benefits Administration Act 2000.

The Product Grants and Benefits Administration Act 2000 sets out eligibility criteria and establishes the administrative mechanisms used by the Australian Taxation Office to pay benefits to recyclers.

Purpose of the ActThe Product Stewardship for Oil program came into effect on 1 January 2001. The program’s objectives are to:

provide economic incentives to increase the uptake, and encourage appropriate recycling and use of, used oil encourage the environmentally sustainable management and re-refining of used oil, and its re-use support economic recycling options for used oil.

The program aims to develop different forms of recycling and a diverse range of products and markets for recycled oil in order to help ensure the long-term viability of the used-oil recycling industry in Australia.

Operational aspects of the ActThe Product Stewardship for Oil Program consists of an economic incentives package (a levy/benefit scheme).

The product stewardship oil levy was introduced on 1January 2001. It is currently set at 5.449 cents per litre of lubricant oil produced or sold in Australia. The levy applies to both domestic and imported oils and is paid by oil producers and importers. Exported oil is not levied. The levy is collected as an excise by the Australian Taxation Office and as customs duty by the Australian Customs and Border Protection Service.

While the levy is intended to offset the cost of benefits paid under the Product Stewardship for Oil Program, it is not directly connected to benefit payments.

Product stewardship benefits are paid to recyclers as a volume-based incentive to encourage increased oil recycling. Benefits are provided at different rates, depending on the type of product: the lowest benefits are provided for basic burner fuels and the highest for full recycling into as new, re-refined base oil. Table 12 shows the 2011–12 benefit rates.

Benefit rates do not directly reflect the comparative effort involved in recycling, or the environmental benefit achieved as the amount of incentive required varies between the different forms of recycling. Rates are set by determining the amount of incentive required for industry to undertake and increase each form of recycling.

Benefits were paid to 22 recyclers during 2011–12.

Table 12: Product stewardship benefit rates in 2011–12

Category Product Benefit(cents per litre)

1 Re-refined base oil (for use as a lubricant or as hydraulic or transformer oil) that meets the prescribed criteria1.

50

2 Other re-refined base oils (for example, chain bar oil). 10

3 Diesel fuels that comply with the Fuel Standard (Automotive Diesel) Determination 2001, as in force from time to time.

7

4 Diesel extenders: (a) that are filtered, de-watered and de-mineralised (b) that, if combined with diesel fuels, would produce a combined fuel that complies with the determination mentioned in category 3.

5

5 High-grade industrial burning oils (filtered, de-watered and demineralised). 5

6 Low-grade industrial burning oils (filtered and de-watered). 3

7 Industrial process oils and process lubricants, including hydraulic and transformer oils (reprocessed or filtered, but not re-refined).

0

8 Gazetted oil, consumed in Australia for a gazetted use. 5.449

1 The Product Stewardship (Oil) Regulations 2000 specify a health, safety and environmental standard for re-refined lubricants. The basic requirement of this standard is to produce a non-carcinogenic and non-toxic product.

Compliance and enforcementThe Australian Taxation Office audit program from previous years continued, with one audit completed in 2011–12.

ReportingThis section fulfils the requirements of section 35 of the Product Stewardship (Oil) Act 2000 and covers the operation of that Act and the operation of the Product Stewardship for Oil program from 1 July 2011 to 30 June 2012.

Product stewardship levy

In 2011–12 total revenue collected from the product stewardship levy was $33.4 million, comprising $22 million in excise collections on domestic production and $11.5 million in customs duty on imported oils. An amount of $2.8 million was paid back to clients in the form of drawbacks (for export) and refunds, bringing the balance of revenue from the levy to $30.6 million.

Levy collections are recorded against a number of categories, based on the type of oil. Customs duty is recorded under international customs classifications. Tables13 and 14 show excise and customs tariff collections for 2011–12, by category.

Product stewardship benefits

A total of $35.6 million was paid as product stewardship benefits in 2011–12, with $32.9 million paid to recyclers for recycling used oil.1 This is an increase of $0.2 million in benefits for recycling compared to 2010–11.

1 The difference between the two figures is due to Category 8 benefits being excluded from the second figure because they are not benefits for recycling used oil. Category 8 benefits are a refund of the product stewardship levy where oil is incorporated into products.

The volume of recycled oil on which benefits were paid in 2011–12 was 271 million litres, compared to 269 million litres in 2010–11. Figure 2 shows the annual volume of used oil recycled since the program began.

Table 13: Product stewardship levy collection (excise) by category

Item number Category Levy collected

15.1 Lubricant base oils. $19,440,756

15.2 Lubricant base oils (recycled). $2,060,461

15.3 Petroleum based greases and their synthetic equivalents. $465,353

Total $21,968,582

Table 14: Product stewardship levy collection (customs tariff) by category

Item number

Category Levy collected

27101991 Petroleum-based oils, including lubricants, hydraulic fluids and transformer oils. $7,363,505

27101992 Petroleum-based greases. $641,197

27109191 Petroleum-based oils, including lubricants, hydraulic fluids and transformer oils. $10,996


27109991 Petroleum-based oils including lubricants, hydraulic fluids and transformer oils. $287,334


34031110 Preparations for the treatment of textiles, containing petroleum oils, solid. $1,654

34031190 Preparations for the treatment of textiles, containing petroleum oils, liquid. $5,033

34031910 Other preparations (for example, cutting oil, anti-corrosion) containing petroleum oils, solid.

$83,212

34031990 Other preparations (for example, cutting oil, anti-corrosion) containing petroleum oils, liquid.

$535,686

34039110 Preparations for the treatment of textiles, not containing petroleum oils, solid. $2,104

34039190 Preparations for the treatment of textiles, not containing petroleum oils, liquid. $6,590

34039910 Other preparations (for example, cutting oil, anti-corrosion) not containing petroleum oils, solid.

$93,967

34039990 Other preparations (for example, cutting oil, anti-corrosion) not containing petroleum oils, liquid.

$364,755

38112110 Additives for lubricating oil, containing petroleum oils, solid. $96,460

38112190 Additives for lubricating oil, containing petroleum oils, liquid. $1,823,226

38190000 Hydraulic brake fluids. $107,769

Figure 1: Annual volume of oil recycled since the Product Stewardship for Oil program began

Note: The pre-PSO program value is an industry estimate. Program benefits commenced in January2001; therefore, the 2000–01 value was derived from data covering only six months.

The above graph shows the annual volume of used oil claimed in each category since the program began. Table 15 provides a breakdown by product category for 2011–12, indicating volumes recycled and benefit payments.

The volume of recycled oil claimed in category one in 2011–12 was an increase of 1.7million litres on 2010–11. The volume claimed in category five decreased by 6.6million litres while the volume in category six increased by 6.9million litres.

Table 15: Product stewardship benefit payments by category in 2011–12

Item number

Category Benefit payments

Litres

1 Re-refined base oil (for use as a lubricant or a hydraulic or transformer oil) that meets the specified criteria.

$23,654,285 47 924 415

2 Other re-refined base oils (for example, chain bar oil). $45,676 462 708

3 Diesel fuels that comply with the Fuel Standard (Automotive Diesel) Determination 2001, as in force from time to time.

$19,553 282 971

4 Diesel extenders: (a) that are filtered, de-watered and de-mineralised (b) that, if combined with diesel fuels, would produce a combined fuel that complies with the determination mentioned in category 3.

nil nil

5 High-grade industrial burning oils (filtered, de-watered and de-mineralised). $6,583,106 133 376 050

6 Low-grade industrial burning oils (filtered and de-watered). $2,634,759 88 968 583

7 Industrial process oils and lubricants, including hydraulic and transformer oils (re-processed or filtered, but not re-refined).

nil nil

8 Gazetted oil consumed in Australia, for a gazetted use. $2,618,515 48 680 534

Total volume of recycled oil (excludes Category 81). 271 014 727

Total benefit payments $35,555,895

1 Benefits paid under Category 8 do not contribute to the overall volume of recycled oil.

Financial InformationThe department’s 2011–12 operating costs for the Product Stewardship for Oil program, including staff salaries and allowances, consultancies, advertising and other related expenses, were $163,362.

The Australian Taxation Office’s operating costs for the program were $151,491. Services provided by the Australian Taxation Office include processing registrations and claims for benefits, compliance monitoring, and client liaison.

CommitteesThe Oil Stewardship Advisory Council is established under Part 3 of the Product Stewardship (Oil) Act 2000. The council’s role is to provide advice to the minister on matters relating to the product stewardship of used oil.

1 The difference between the two figures is due to Category 8 benefits being excluded from the second figure because they are not benefits for recycling used oil. Category 8 benefits are a refund of the product stewardship levy where oil is incorporated into products.

Outcome 3: Antarctica

‘Advancing Australia’s interests in the Antarctic.’

Advancement of Australia’s strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.

Main responsibilities for this outcomeOverseeing the Antarctic Treaty System, Antarctic and Southern Ocean environment protection, Australian Antarctic Territory and Territory of Heard Island and McDonald Islands administration, and Antarctic and Southern Ocean research. Australian Antarctic Division

ObjectivesAustralia’s Antarctic program objectives are based on the region’s strategic, scientific, environmental and potential economic importance for Australia. They include:

conducting scientific research in Antarctica and the Southern Ocean that supports national policy and environmental management priorities, in particular taking advantage of the special opportunities the Antarctic offers for globally significant and coordinated research

preserving our sovereignty over the Australian Antarctic Territory, including our sovereign rights over adjacent offshore areas

protecting the Antarctic and the Southern Ocean environment, having regard to its special qualities and effects on our region

maintaining Antarctica’s freedom from strategic and/or political confrontation being informed about and able to influence developments in a region geographically proximate to Australia deriving any reasonable economic benefits from living and non-living resources of the Antarctic and the

Southern Ocean (excluding deriving benefits from mining and oil drilling in the Antarctic Treaty area) developing arrangements with other Antarctic programs to enhance cooperation in science and logistics.

Highlights This department and the Department of Foreign Affairs and Trade successfully hosted the 35th Antarctic

Treaty Consultative meeting with more than 300 delegates from among the 50 Antarctic nations in June 2012. At this meeting Australia participated in discussions leading to the adoption of a number of environmental protection initiatives and institutional improvements.

The Australian Antarctic science program undertook a total of 97 science projects from 27 institutions; these involved collaboration with a further 244 institutions from 37 countries. In 2011–12, 237 publications were produced from the Australian Antarctic science program. Of these, 147 were published in peer-reviewed international literature and 11 contributed to supporting Australia’s position in key policy forums.

Australia commemorated 100 years of exploration and science in Antarctica. Sir Douglas Mawson’s 1911–14 Australasian Antarctic Expedition was celebrated through a range of activities, including a service at Mawson’s Huts Historic Site at Commonwealth Bay, Cape Denison, Antarctica.

Key achievements The Senate passed the Antarctic Treaty (Environment Protection) Amendment Bill 2011 in late June 2012. The

Bill amends the Antarctic Treaty (Environment Protection) Act 1980 to align the legislation with Australia’s revised obligations pursuant to three measures under the Antarctic Treaty and its Protocol on Environmental Protection (the Madrid Protocol). The Measures established more stringent arrangements to protect the Antarctic environment, and human and vessel safety in the Antarctic.

Australia played a leading role in the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR). Progress was made at CCAMLR’s 30th meeting (held on 24 October to 4 November 2011) towards a number of Australia’s key priorities including:

o a representative system of marine protected areas in East Antarctica o the development of a compliance evaluation procedureo continuation of precautionary catch limits on krill fishingo sustainable management of fisheries in the Indian Ocean sector of the CCAMLR areao standards for data poor fisherieso revised financial regulations and new investment principles.

A research project supported through the Australian Antarctic program successfully pioneered new techniques for counting penguins from space. This collaborative study used satellite mapping technology to reveal that the population of emperor penguins in Antarctica is twice the existing estimate. This was the first comprehensive census of a species taken from space. The study offers innovative and cost-effective ways to conduct research safely and efficiently with little environmental impact whilst providing accurate information for international conservation efforts.

A new super-insulated building providing living quarters at Davis Station in Antarctica won a State Engineers Australia Award for Excellence 2011 and was nominated for a National Award. The building method offered a largely prefabricated solution which was transportable, strong, spatially efficient and offered outstanding thermal properties, providing an innovative solution to construction in one of the world’s most inhospitable climates.

Formal cooperation agreements were signed with China, France and the Russian Federation to facilitate future cooperation in the fields of Antarctic science, operations and policy.

The department offered significant logistical and station support to the Tasmanian Government’s Macquarie Island Pest Eradication Program, the largest attempted eradication ever undertaken on an island in the world to date. The goal of the eradication of rabbits and rodents on Macquarie Island is to facilitate the restoration of natural ecosystems and native species.

Australia continued to lead in the development of technologies for the remediation of contaminated sites in Antarctica, including fuel spills, and constructed the first full scale biopile in Antarctica. This passive treatment facility at Casey Station holds more than 1000 tonnes of highly contaminated soil. The system stimulates bacteria naturally found in Antarctica to break down fuel into harmless products. In the first year of operation, fuel contamination dropped by half, a significant result given that for nine months of the year the soil is frozen and covered in snow. This approach is cheaper than removing soil from Antarctica and has better environmental outcomes because the soil, which is rare in Antarctica, can be used on station or put back into the ground after treatment.

StrategiesAustralia’s commitment to valuing, protecting and understanding Antarctica was furthered by:

undertaking research into environmental systems and the effects of global climate change to ensure that management of Antarctica and the Southern Ocean is based on sound scientific principles and the best available scientific knowledge

developing internationally accepted environmental protection measures through the Antarctic Treaty system and advocating for other nations’ agreement to these measures

developing, implementing and managing practical ways to minimise the effects of our own activities restoring past sites of human activities helping to combat illegal, unreported and unregulated fishing in the Southern Ocean.

The department participates and leads discussion in key forums, including the:

Antarctic Treaty Consultative Meeting Committee for Environmental Protection Commission for the Conservation of Antarctic Marine Living Resources Agreement on the Conservation of Albatrosses and Petrels.

Australia continues to undertake scientific research in accordance with the Australian Antarctic Science Strategic Plan 2011–12 to 2020–21 for Australia’s Antarctic program. The 2011–12 year was a transition year between the previous

Science Strategy and the new Strategic Plan, with all projects undertaken under the previous plan coming to an end this year. A new science application process was undertaken during 2011–12 to select the projects due to commence in 2012–13. The process will guide the Australian Antarctic science program to focus efforts within four thematic areas:

climate processes and change terrestrial and near-shore ecosystems: environmental change and conservation Southern Ocean ecosystems: environmental change and conservation frontier science.

It also establishes the framework for Australian Antarctic research to which universities, research institutions, the department and other national and international government bodies contribute.

The Australian Antarctic Division developed Strategic Directions 2012–2022, which outlines the work that the division will undertake to support Australia’s Antarctic national interests and implement our responsibilities under both the department’s Strategic plan and sustainability framework.

Case Study 1: Antarctic Oceanographic Research: a changing Southern Ocean

Oceanographic research undertaken with the Australian Antarctic program is continuing to produce a better understanding of the Southern Ocean Circulation.

This research was carried out by more than 50 scientists on the department’s chartered vessel Aurora Australis, which sailed to Commonwealth Bay as part of the Mawson centenary commemorations. Following the celebrations the Aurora Australis headed west along the Antarctic coast as it returned into Fremantle. This major marine science voyage undertook 95 measurements of the conductivity, temperature and depth of seawater at 77 sampling stations.

This oceanographic research is addressing the role of the Southern Ocean in the world’s climate processes. Given that more than 90 per cent of the extra heat energy stored by the earth over the last 50 years has gone into warming world oceans, it is clearly important to measure the changes that are occurring. The Southern Ocean is particularly important as it stores more heat and carbon dioxide released by human activities than any other ocean, and so helps to slow the rate of climate change.

The results of the voyage show a massive reduction in the amount of Antarctic bottom water (the cold dense water flowing away from Antarctica that drives global ocean currents). Comparing detailed measurements taken during the voyage to historical data dating back to 1970, scientists now estimate there has been as much as a 65 per cent reduction in the volume of Antarctic bottom water. This large reduction has implications which extend far beyond Antarctica because of the global reach of Antarctic water masses. Ongoing research is essential to understand the impacts of these changes.

Case Study 2: Ice core reveals unusual decline in eastern Australian rainfall

Researchers from the Antarctic Climate and Ecosystems Cooperative Research Centre (ACE CRC) and the department have found evidence from ice cores of a long-term decline in average annual rainfall in eastern Australia. Records reveal that rainfall since about 1920 is below the average of the past 1000 years.

Australia’s instrumental climate records extend back only about 100 years and show an apparent decline in eastern Australian rainfall. However, rainfall in eastern Australia is highly variable and the significance of the decline can only be assessed when compared with a much longer record.

ACE CRC glaciologist Dr Tessa Vance and colleagues from the department and the University of Tasmania have obtained the 1000-year record from ice core data. The research, published in Journal of Climate, shows a direct correlation between the instrumental eastern Australian rainfall record and sea salts deposited by winds at Law Dome in East Antarctica over the past 100 years. The 1000-year-old Law Dome sea salt proxy provides the longest rainfall record yet for eastern Australia.

“The El Niño-Southern Oscillation, or ENSO, climate mode predominantly drives rainfall in eastern Australia and is one of the factors that affects winds in the Southern Ocean,” Dr Vance said.

Unlike many other continents, such as North America and Europe, Australia generally lacks suitable climate proxies (such as tree rings) for rainfall prior to the instrumental record. “We weren’t expecting such a strong correlation between two areas this far apart. Normally proxy records come from the region that you are trying to describe,” Dr Vance said.

The proxy record shows that the dry period since the 1920s is similar to a dry period from 1000–1260 AD. Scientists attribute both dry periods to either stronger or more frequent El Niño events. In El Niño-like years, summertime winds in the Southern Ocean are reduced, leading to lower than average concentrations of salts in the ice core. In La Niña-like years, the opposite occurs, with higher summertime winds causing higher concentrations of salts.

Dr Tas van Ommen leads the Australian Antarctic Division Climate Processes and Change Program and is a co-author on the study. ‘This work builds on a 2010 study from the Australian Antarctic Division which identified other mechanisms linking Antarctica with the drought in Western Australia, and it shows how important Antarctic climate studies are to understanding climate processes in Australia and the Southern Hemisphere,’ he said.

Future research will work towards understanding whether the current dry period had similar climate drivers to the period from 1000–1260 AD. The record will also be extended back another 1000 years, increasing understanding of the Australian climate for the past 2000 years.

Photo of an ice core drilling camp after a week-long blizzard, Law Dome, Antarctica. (Joel Pedro)


Program 3.1: Antarctica: Science, Policy and Presence

Deliverables 2011–12 results

Deliver high-priority Australian Antarctic scientific research in accordance with the goals of the Australian Antarctic Science Strategic Plan 2011–12 to 2020–21.

Achieved. The Australian Antarctic science program undertook a total of 97 science projects from 27 institutions, involving collaboration with a further 244 institutions from 37 countries. It supported 112 higher degree students, including 76 PhD students.

Protect the Antarctic environment and undertake work of practical, economic and international significance, including compliance with all Australian Antarctic environmental legislation.

Achieved.

Pursue Australia’s Antarctic policy objectives through participation in the Antarctic Treaty system and related forums, including meetings of the:

Antarctic Treaty Consultative Parties and the Committee for Environmental Protection

Commission for the Conservation of Antarctic Marine Living Resources

Scientific Committee on Antarctic Research Council of Managers of National Antarctic

Programs Agreement on the Conservation of

Albatrosses and Petrels.

Achieved. The department advanced Australian interests through the Antarctic Treaty system and related forums, as listed in the key performance indicator table (p 124).

Administer the Australian Antarctic Territory and the Territory of Heard Island and McDonald Islands, including the authorisation and management of Australian activities in accordance with relevant legislation and environmental protection measures.

Achieved. The territories were administered in accordance with relevant legislation and environment protection measures.

Maintain three stations in the Australian Antarctic Achieved. The 4 permanent research stations were maintained,

Deliverables 2011–12 results

Territory and one station in the sub-Antarctic, these being:

Casey Station (Antarctica) Davis Station (Antarctica) Mawson Station (Antarctica) Macquarie Island Station (sub-Antarctic).

providing a permanent presence and support for research.

Operate a transport and logistics network using shipping and air services to:

transport expeditioners and cargo between Australia, Antarctica and sub-Antarctic Islands

support scientific research in Antarctica and the Southern Ocean.

Achieved. A total of 201 shipping days supported Australia’s Antarctic program. The shipping schedule included a major marine science voyage and a dedicated voyage in support of the Macquarie Island Pest Eradication Program.

A total of 7 intercontinental flights were conducted in support of Australia’s Antarctic program. This included scheduled flights between Hobart and Wilkins Aerodrome, one unscheduled medical evacuation flight to repatriate an injured expeditioner, and two flights positioning Australian expeditioners at the US McMurdo Station before travelling to Casey on US transport or fixed-wing aircraft chartered by the department. 10 further intercontinental flights were undertaken under the Antarctic Airlink program to transfer passengers to Casey Station and other Antarctic destinations via the ice runway at McMurdo.

A total of 36 science projects sent field personnel to Antarctica, eight projects went to Macquarie Island and 10 marine science projects were undertaken.

Deliverables 2011–12

budget target

2011–12 results

Participation in key Antarctic Treaty-related forums [% attended].

100 100

Scientists active in Antarctica, the sub-Antarctic and the Southern Ocean during the financial year [#].

90 124

Permanent stations operated, maintained and resupplied [#].

4 4

Shipping days in support of Australia’s Antarctic program [#].

180 201 The shipping schedule was extended to include a mid-season voyage to Commonwealth Bay for commemoration of the Mawson centenary and to conduct a marine science program in a region not frequently visited.

Flights between Hobart and Casey stations [# of return flights].

15 5 A reduced program of flying operations was planned as warmer weather conditions, which have limited runway operations in recent years, were expected to continue this summer. This proved to be the case, with the runway closed from late December to late January.

Key performance indicators 2011–12 results

Internationally recognised scientific research in Antarctica and the Southern Ocean will be measured by the number of published scientific papers and the number of international institutions collaborating in the Australian Antarctic program.

During the 2011 calendar year, 237 publications were produced within the Australian Antarctic science program. Of these, 147 were published in peer-reviewed international literature and 11 contributed to supporting Australia’s position in key policy forums such as the Antarctic Treaty, the Commission for the Conservation

Key performance indicators 2011–12 results

of Antarctic Marine Living Resources, the Agreement on the Conservation of Albatrosses and Petrels and the International Whaling Commission. The department has met this key performance indicator since 2009–10.

Enhanced Australian influence in the Antarctic Treaty system, including through participation in its various forums as measured by the extent to which Australia’s objectives are achieved and the number of senior positions (e.g. Chairperson or Vice-Chairperson) held by Australia.

In 2011–12 Australia continued to enhance its position within the Antarctic Treaty system by active participation in its various elements. Between 11 and 20 June 2012, Australia hosted the 35th Antarctic Treaty Consultative Meeting in Hobart. At this meeting Australia played a key role in leading the adoption of a number of initiatives promoting improved environmental protection for Antarctica, including on establishing protected areas, clean-up of sites of past activities, and prevention of non-native species. The department has met this key performance indicator since 2009–10.

Australia’s Antarctic program complies with all Australian Antarctic environmental legislation. The program’s target is 100% compliance.

The department met this key performance indicator in 2011–12.

Effective shipping and air services as measured by the combined number of expeditioners and the volume of cargo transported during the year.

There were 345 expeditioners this year, representing 98.6% of the KPI target. 7 voyages were undertaken this season, including a voyage to Commonwealth Bay (Mawson’s Huts), a major marine science program, and a dedicated voyage in support of the Macquarie Island Pest Eradication Program. 5 direct flights from Hobart to Wilkins were conducted this season. This included an unscheduled flight to undertake a medical evacuation in early December. The A319 aircraft conducted two flights to McMurdo Station. 8 flights were undertaken on behalf of the USAP and Italian programs in return for in-kind support. The department has met the volume of cargo key performance indicator since 2010–11.

Operate permanent stations as a demonstration of Australia’s continued presence and commitment. The level of utilisation (measured by the number of expeditioners and occupied bed nights) is an indicator of the program’s performance in maintaining Australia’s presence.

The four permanent research stations were operated, maintained and developed. The department has met the bed nights key performance indicator since 2010–11, and reached 98.6% of the expeditioners key performance indicator target this year.

Key performance indicators 2011–12 budget target

2011–12 results 2010–11

2009–10

Scientific publications produced in previous calendar year [#].

200 237 257 245

International institutions collaborating in the Australian Antarctic program [#].

150 244 institutions from 37 countries. 244 187

Senior positions held on Antarctic Treaty related organisations [#].

2 3 2 4

Number of expeditioners transported to Australia’s Antarctic and the sub-Antarctic stations (round trips) [#].

350 345 386 337

Australian Antarctic program compliance with Antarctic environmental protection legislation [%].

100 100 95 100

Volume of cargo transported to Australia’s Antarctic and the sub-Antarctic stations [cubic metres].

10 000 10 341 12 200 6852

Station utilisation [# of occupied bed 40 000 51 520 The increase in bed nights is a result of 48 000 33399

nights]. the effort, across both summer and winter, involved in the Macquarie Island Pest Eradication Program

Outcome 4: Sustainable water

‘Improving water management to promote resilient and sustainable communities.’

Adaptation to climate change, wise water use, secure water supplies, and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources.


Continuing the national program of water reform, including implementing the National Water Initiative to achieve better planning and establish efficient and effective national water markets.

Working with the Murray–Darling Basin Authority and Basin governments to deliver the Murray–Darling Basin Plan, by implementing programs which support reform in the Murray–Darling Basin.

Investing in infrastructure with state and territory overnments, industry and communities across Australia, particularly in the Murray–Darling Basin, to improve the sustainability of rural water use.

Acquiring water to bridge the gap between the sustainable diversion limits to be included in the Murray–Darling Basin Plan and existing diversions of water.

Helping secure water supplies for towns and cities, and assisting households and businesses to use water more efficiently.

Assisting states, territories and landowners to improve their management of rivers and wetlands, particularly sites of international and national importance.

Providing communities with greater confidence in regulatory decisions on coal seam gas and coal mining developments that are likely to have a significant impact on water resources, through the Office of Water Science and the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development.

Using the Commonwealth environmental water holdings to restore and protect the health of rivers and wetlands in the Murray–Darling Basin.

Implementing other water related measures as required by the government, such as further development of the National Water Quality Management Strategy.

Water Group: Water Efficiency Division Water Reform Division Office of Water Science Commonwealth Environmental Water Office

Objectives Help communities and industries, particularly in the Murray–Darling Basin, become more resilient, sustainable

and better positioned to adapt to future water availability. Help make irrigation significantly more efficient and ensure that water savings are shared between irrigators

and the environment. Implement reforms that deliver more efficient use of water resources. Develop an effective and transparent water market. Help urban communities and businesses use water resources more efficiently and better secure their water

supply. Improve the health of rivers, wetlands and freshwater ecosystems.

Implement the Australian Government’s ‘bridge the gap’ commitment for the Murray–Darling Basin by recovering water for environmental use through water purchase and infrastructure initiatives.

Support key bilateral country partners to improve their water management. Improve community confidence in decision making concerning the impacts of coal seam gas and large coal

mining developments on water resources.

Highlights

1000 gigalitres of environmental water delivered since inception

In April 2012, a milestone of 1000 gigalitres of Commonwealth environmental water delivered to wetlands and rivers in the Murray–Darling Basin was reached. Environmental water has benefited important environmental assets, including Hattah Lakes in Victoria, the Macquarie Marshes in NSW and lakes Alexandrina and Albert in South Australia, along with rivers including the Goulburn and Murrumbidgee. Besides improving river and wetland ecosystem health, the water has been used to ensure the protection and conservation of Murray Cod, river red gums and waterbirds.

More than halfway to bridging the gap

Environmental water recovery efforts to bridge the gap to the new sustainable diversion limit in the Murray–Darling Basin have provided for an increase in the average annual volume of water available for the environment of around 1522 gigalitres by the end of 2011-12. This is more than halfway to achieving the proposed reduction in surface water diversions in the draft Murray–Darling Basin Plan of 2750 gigalitres. Water for the Future initiatives account for the majority of the water recovered so far to bridge the gap. Substantial irrigation modernisation projects are under way in all Basin states, and contracted water recoveries through infrastructure works are now approaching half of the 600 gigalitres of gap bridging water expected under the Sustainable Rural Water Use and Infrastructure program.

Infrastructure investment

More than $1 billion in funding has been invested in irrigation infrastructure to deliver water reform. This investment will improve the efficiency of irrigation networks to fix and replace old, leaky systems, modernise on-farm infrastructure, and rationalise and upgrade delivery systems.

Key achievements

Northern Victoria Irrigation Renewal Project, Stage 2 (NVIRP2)

On 18 October 2011, the Australian and Victorian governments signed a contract for Stage 2 of the $1.2 billion Northern Victoria Irrigation Renewal Project (NVIRP2). The project is the largest Australian Government investment in irrigation infrastructure and will produce 214 gigalitres in water savings. The project will help restore the Murray River to health and deliver a world class irrigation system for northern Victoria’s food producers. NVIRP2 includes an on-farm irrigation modernisation project which will complement the NVIRP2 irrigation infrastructure upgrade, enabling farmers to realise the full benefit of both off-farm and on-farm irrigation modernisation.

Finalisation of the National Water Knowledge and Research Platform

The National Water Knowledge and Research Platform, prepared after extensive discussions with states and the research community, was finalised by the COAG Standing Council for Environment and Water.

The objective of the platform is for key decisions on water policy, management and use in Australia to be based on best available and continuously improving knowledge and information. The platform identifies national priority water knowledge and research needs for the next five years. The platform does not seek to describe governance models, funding options or budget for the supply of research services; rather it focuses on identifying priorities and establishing consistent approaches for obtaining and using research in priority areas.

Establishment of the Office of Water Science

The Office of Water Science was established in November 2011 in response to the Australian Government’s initiative to improve scientific research, and increase community confidence in decision making processes regarding the impacts of coal seam gas and large coal mining developments on water resources. Since its establishment the Office of Water Science has:

established and supported the Interim Independent Expert Scientific Committee on Coal Seam Gas and Coal Mining

implemented the Australian Government’s responsibilities under the National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development

engaged a range of organisations to undertake key knowledge research projects, including commencement of data collection for bioregional assessments.

Establishment of the Commonwealth Environmental Water Office

In December 2011, a Commonwealth Environmental Water Office was established. Operating as a distinct entity, it provides separation within the department between the statutory position of the Commonwealth Environmental Water Holder and other Murray–Darling Basin policy and program roles. The Commonwealth Environmental Water Holder was made a dedicated statutory office position. Please refer to the Commonwealth Environmental Water Holder Annual Report in this chapter for details.

Launch of the National Hydrologic Modelling Platform

As part of the 2008 Council of Australian Governments (COAG) National Hydrologic Modelling Platform (formerly the National Hydrologic Modelling Strategy), the department established a funding arrangement with eWater Limited in May 2012 to adopt their source model. The COAG initiative will help ensure cross-border consistency in water resource planning and management. It links science, policy and management to help policy makers and operators consider future scenarios and alternative water management options for catchments, urban environments and river systems.

The National Hydrologic Modelling Platform is the culmination of more than 20 years of research, development and significant collaboration with governments, national water authorities, private industry partners and Australia’s leading hydrologic and ecological scientists. The Australian Government will provide almost $4 million to support participating states (New South Wales, Victorian, Queensland, South Australian, Australian Capital Territory and Northern Territory) adopt the model.

StrategiesIn 2011–12 the department continued to deliver the Water for the Future initiative to improve the sustainability of Australia’s water resources. Contributions to achieving this outcome included:

progressing implementation of the 2004 National Water Initiative, including an efficient and effective national water market

progressing the implementation of the 2008 Intergovernmental Agreement to improve the sustainability of the Murray–Darling Basin

working with the Murray–Darling Basin Authority and Basin governments to deliver the Basin Plan by implementing programs which support reform of the Murray–Darling Basin

investing in infrastructure with states, industry and communities across Australia, and particularly in the Murray–Darling Basin, to improve the sustainability of rural water use

acquiring water to ‘bridge the gap’ between the Sustainable Diversion Limits to be included in the Basin Plan and existing diversions of water

funding investment in infrastructure, new technology and smart water use to secure water supplies for urban communities, cities and towns

using the Commonwealth Environmental Water Holdings to restore and protect the health of rivers and wetlands in the Murray–Darling Basin

providing water efficiency information and minimum standards for household water products helping communities and irrigation delivery bodies in the Murray–Darling Basin to plan more effectively their

future water use assisting states, territories and landowners to meet their obligations to protect freshwater ecosystems, rivers

and wetlands setting the frameworks for water quality management sharing Australian knowledge and practice in water use with key bilateral partners and promoting learning

from international best practice in multilateral bodies.

Evaluation and conclusionsDuring 2011–12 the following reviews of the department’s programs were conducted.

Survey of water entitlement sellers under the Restoring the Balance in the Murray–Darling Basin Program

In 2011–12 the department commissioned independent research to evaluate the impact of the water buyback program and to gather information from participating irrigators about the administrative aspects of the program. The research was based on a survey of more than 500, or around 15 per cent, of participating irrigators.

Results from the survey will be used to inform the government’s approach to future water buybacks. The completed survey, conducted by Marsden Jacob, is available on the department’s website at <www.environment.gov.au/water/publications/mdb/survey-seller-rtb-program.html>.

Internal Audit Report–Management-initiated Review of the Sustainable Rural Water Use and Infrastructure Program (SRWUIP)

The purpose of the review was to provide an independent view of the administration of the program regarding government policy and best practice, to identify key risks to the program that may not be currently addressed, and to make recommendations for improvement to the administration of the program. The review was undertaken by PricewaterhouseCoopers and focused on three projects funded through SRWUIP. The final report, received in April 2012, provided findings on strengths within the program administration, including our use of the project management framework, file management, governance, and continuous improvements in monitoring and reporting. Areas identified as requiring further attention were also discussed in detail, and included documentation of policy positions, and the introduction of a monitoring and evaluation framework for SRWUIP.

Audit of the Private Irrigation Infrastructure Operators Program by the Australian National Audit Office

The Private Irrigation Infrastructure Operators Program (PIIOP) is on track to meet its objectives when the program closes in 2019. The Australian National Audit Office (ANAO) conducted a performance audit on PIIOP in 2011–12.

The department accepts and will implement the three recommendations, which will strengthen administration of rural water infrastructure investment programs. The key findings were to:

reinforce the importance of effective governance arrangements in administrating similar programs highlight the need to tailor the application approach to each program and implement assessment processes that

better reflect the Commonwealth Grant Guidelines develop key performance indicators for PIIOP.

Internal Audit Report–Good Start Review Function of the Commonwealth Environmental Water Holder

The overall objectives of the review were to determine whether appropriate governance, project management processes and supporting procedures are in place to support the Commonwealth Environmental Water Holder function, and to determine whether sufficient progress is being made in accordance with implementation timeframes. The review was completed by PricewaterhouseCoopers in March 2012.

Case Study 1: First Private Irrigation Infrastructure Operators Program project completed

The first NSW irrigation infrastructure modernisation project funded by the Australian Government under the Water for the Future initiative was completed near Warren, New South Wales.

Marthaguy Irrigation Scheme Pty Ltd, in the Macquarie Valley catchment, received $9.4 million under the Private Irrigation Infrastructure Operators Program to rationalise its channel system and modernise its water management infrastructure.

The culmination of five years’ work, the Greening the Marthaguy project will provide 4928 megalitres of water entitlements to the Commonwealth through water savings, which will be used to benefit Murray–Darling Basin rivers and wetlands.

Marthaguy Irrigation Scheme is located 33 kilometres north of Warren and pumps water from the Macquarie River. The Scheme supplies general security water and stock and domestic water to 19 members, 12 of whom irrigate about 6200 hectares of land on 18 properties.

As part of the project, a new enclosed 60 kilometres pipeline was installed, 16 kilometres of open earth channels that are no longer needed were decommissioned and the channels filled in. Remote monitoring systems were also installed to manage and control water use for both irrigation and stock and domestic purposes.

The rationalised earth channel and new stock and domestic pipeline dramatically reduced previous problems with seepage, effectively drought-proofed a lot of properties, and now protects stock watering.

‘We have a rejuvenated confidence in our irrigation enterprise due to the ability of the Scheme to operate in a wide range of water availability scenarios,’ said Mark Beach, Bealcott Partnership owner. ‘With the increased efficiency and improved reliability of the new Scheme, we are now looking at ways to maintain a regular program and workforce.’

Completion of Greening the Marthaguy improved the long-term viability of the scheme and the district.

‘The new stock and domestic supply is the best thing that has happened for our farming enterprise,’ said Michael and Margaret O’Brien, who operate a mixed farming and grazing enterprise at the northern extremity of the Scheme. ‘Under the new arrangement we have permanent access to a good water supply, both quality and quantity. This provides a sustainable future for our stock operations and having permanently available water is a dream.’

Reconfiguring and concentrating water delivery to an efficient purpose-built channel network has meant the scheme is operable under almost all allocation years. In the long-term, this will allow members to irrigate crops in low-allocation years to maintain farm productivity and improve resource utilisation.

Photo of a demonstration of the water pressure available to farmers following the upgrade of the stock and domestic system at the Marthaguy Irrigation Scheme. (DSEWPaC image).




In 2011–12 the department will work with states and territories, communities, industry and partner organisations involved in Water for the Future to improve the way in which water is used and managed. The department will continue, both directly and through state and territory partner governments, to deliver a range of interlinked programs and activities to assist communities and industry to adapt and build resilience to future water availability, while sustainably managing our inland waters and wetlands. This will be achieved by:

continuing to deliver agreed water reforms under the National Water Initiative, the COAG national water reform agenda, the Water Act 2007 and the 2008 Intergovernmental Agreement on Murray–Darling Basin Reform

In addition to the specific progress listed below, on the National Hydrologic Modelling Platform, the National Water Knowledge and Research Platform, and the National Water Market System, the department worked closely with jurisdictions to deliver the following key results:

the National Framework for Compliance and Enforcement Systems for Water Resource Management was launched in June 2012, with all state and territory governments having signed up to the Framework

COAG agreed in early April 2012 to establish an Assessment Framework for sustainable water extraction, and a biennial Water Planning Report Card.

Significant progress was made in 2011–12 in the delivery of national water reform:

Development of the Murray–Darling Basin Plan (the Basin Plan) is a key reform aimed at ensuring a healthy river system, strong communities and sustainable food production in the Murray–Darling Basin. The department assisted in the process by chairing the Basin Officials Committee and other associated Commonwealth-Basin State Forums. The department also assisted the minister as chair of the Murray–Darling Basin Ministerial Council and associated meetings at ministerial level.

providing funding for urban and rural community water infrastructure and adopting, developing and publicising new technologies to improve water use efficiency and ensure greater water security

The Water Smart Australia and Strengthening Basin Communities programs invested $56 million in over 120 projects to improve small community water infrastructure and accelerate the uptake of new technologies, resulting in more efficient use of water and greater water security. These projects, such as the expanding and linking of recycled water in Kyneton, Victoria and the installation of remote meter reading technology in Hervey Bay, Queensland were implemented across Australia, with many undertaken in the Murray–Darling Basin. The Commonwealth’s investment in these types of projects since 2005–06 totals $1.4 billion.


funding communities and irrigation providers to update their water management plans and upgrade on-farm and off-farm irrigation infrastructure to support efficient water management, with water savings shared between irrigators and the environment

As at 30 June 2012 under the Sustainable Rural Water Use and Infrastructure Program, $4.74 billion was committed to infrastructure projects nationally. During 2011–12 the Australian Government announced infrastructure investments totalling around $2 billion.

delivering on the Australian Government’s commitment to ‘bridge the gap’ between the Sustainable Diversion Limits to be included in the Basin Plan and existing diversions of water by recovering water for the environment through investment in infrastructure and water purchases

As at 30 June 2012, investments made through the Restoring the Balance in the Basin ($2.3 billion) and the Sustainable Rural Water Use Infrastructure program ($2.2 billion) for water infrastructure projects recovered 1358 gigalitres (long-term average annual yield) towards bridging the gap to the sustainable diversion limit under the Basin Plan.

continuing to work with states, territories, landowners and community groups to improve the management of the nation’s rivers, wetlands and freshwater ecosystems

The department was an active participant in community consultations on the draft Basin Plan, and worked closely with Basin jurisdictions towards an agreed approach to Murray–Darling Basin reform (Basin reform) and its implementation. The department consulted closely with Basin states, irrigation industry partners, landholders and community groups in progressing key Water for the Future initiatives, including investment in more efficient irrigation infrastructure, potential for new environmental works and measures, water recovery and delivering environmental water to the Murray–Darling Basin’s iconic rivers and wetlands.

the Commonwealth Environmental Water Holder:

Please refer to the Commonwealth Environmental Water Annual Report in this chapter, and the 2010–11 Commonwealth Environmental Water Outcomes Report published in February 2012.continuing to build and

manage a water portfolio that protects the health of nationally and internationally significant waterways and wetland ecosystems

providing outcome and annual reports on watering actions undertaken

helping urban communities and businesses use water resources more efficiently and better secure their water supply by investing with states and territories in upgraded infrastructure.

The Commonwealth added $391 million, from the National Urban Water and Desalination Plan and the National Water Security Plan for Cities and Towns, to investments by state and territory governments to upgrade water infrastructure and better secure the supply of water to business, urban and remote Indigenous communities. This included: funding for the Adelaide Desalination Plant (South Australia); retrofitting of household fittings in the Kimberley region (Western Australia); the fitting of water meters (Tasmania) and stormwater harvesting and re-use in several capital cities. The Commonwealth’s investment in these types of projects since 2007 totals $613 million.

The department will also support key bilateral country partners to improve their water management and will promote Australia’s interests in international bodies. The department will host one inward visit by a significant

The department hosted a number of international delegations during 2011–2012, including a senior United States Environmental Protection Agency delegation in August 2011. A key outcome of this meeting was the development of a program of work for future cooperation on water issues. The department also participated in a high-level water policy meeting in Beijing, China, where our mutual water issues were discussed and future water collaboration was agreed.


bilateral international partner each year.

In 2011–12, the department will also:

In May 2012 the department established a new funding arrangement to adopt the Source Model as the COAG National Hydrologic Modelling Platform (formerly the National Hydrological Modelling Strategy) with eWater Limited. This arrangement will provide national consistency in water resource planning by integrating the economic and environmental uses of water for cities, irrigation, industry, mining, wetlands and waterways. Commonwealth funding to implement the platform to June 2015 was matched by participating states and territories.

establish new funding arrangements for adopting the National Hydrological Modelling Strategy

advise the Australian Government on the Response to National Water Commission 2011 Review of National Water Initiative

The independent COAG Review of the National Water Commission conducted by Dr David Rosalky and commissioned by the department was tabled in Parliament on 14 March 2012. On 13 April 2012 the Australian Government obtained COAG’s agreement to continue the National Water Commission for the life of the National Water Initiative, with the functions of audit, assessment and monitoring of national water reforms. The National Water Commission Amendment Bill 2012 was passed by Parliament on 21 June 2012, giving effect to that decision.

finalise the National Water Knowledge and Research Plan

The National Water Knowledge and Research Platform, prepared after extensive discussions with states and the research community, was finalised by the COAG Standing Council for Environment and Water.

provide materials to supplement the national water planning guidelines

The National Water Initiative policy guidelines for water planning and management (water planning guidelines) were agreed by COAG out of session in early April 2012. Case studies to support the guidelines have been agreed by all jurisdictions and will be made available on the department’s website once the water planning guidelines are published on the COAG website.

complete the tender for and contract a partner to deliver the National Water Market System (NWMS)

Following extensive industry and state and territory consultation, the department went to market to engage a partner to design, build and implement the NWMS. There was a high level of interest shown in the request for tender process, which led to a number of highly innovative solutions being offered. The department identified a preferred tenderer and contract negotiations commenced in 2011–2012.

deliver a national report on Australia’s implementation of the Ramsar Convention to the 11th Conference of the Contracting Parties to the Ramsar Convention (CoP 11)

Australia’s national report to CoP 11 was submitted to the Ramsar Secretariat. The report can be found on the department’s website: <www.environment.gov.au/water/publications/environmental/wetlands/national-report-cop11.html>.

develop a National Wetlands Policy Statement

A draft National Wetlands Policy Statement was progressed, in consultation with the Australian, state and territory governments. It is expected the draft statement will be released for public comment during 2012–13.

complete a Review of National Water Quality Management Strategy

An independent review of the National Water Quality Management Strategy was completed and is available on the department’s website at <http://environment.gov.au/water/publications/quality/water-quality-final-report.html>.

provide timely advice on all relevant Environment Protection and Biodiversity Conservation Act (EPBC Act) referrals.

Advice was provided on Ramsar Wetlands for 91 referrals, thereby assisting the department to meet its legislative timeframes under the EPBC Act.

In 2013–14 the department will review and report on the progress of Australian governments’ progress in developing national guidelines to identify and classify High Ecological Value Aquatic Ecosystems (HEVAE).

The department reviewed and reported to the COAG Water Reform Thematic Oversight Group on the progress of the development of national guidelines to identify and classify HEVAE.


Establish an Interim Independent Expert Scientific Committee that:

improves the science base in relation to the interaction of coal seam gas and large coal mining developments and water resources by advising on priorities and overseeing research on these issues

provides Commonwealth and state governments with expert scientific advice relating to coal seam gas and large coal mining development proposals that may have a significant impact on water resources.

In absence of a statutory committee that could only be established after the passing of legislation, the Interim Independent Expert Scientific Committee on Coal Seam Gas and Coal Mining (interim committee) was established on 17 January 2012. The role of the interim committee is to:

provide advice to governments on coal seam gas and coal mining projects advise on research priorities and priority areas for bioregional assessments oversee research and bioregional assessment.

Since the interim committee’s establishment it has held six committee meetings and two workshops.

Introduce amendments to the EPBC Act to establish a statutory advisory role for the committee on coal seam gas and large coal mines.

On 22 March 2012 the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP, introduced legislative amendments to the EPBC Act to establish an Independent Expert Scientific Committee to provide advice on coal seam gas and large coal mining developments.

Commission, on behalf of the committee, expert scientific studies related to coal seam gas and coal mining and their impacts on water resources.

The interim committee identified six key knowledge gap themes and recommended 27 priority research projects to assess the impacts of coal seam gas and coal mining on water resources and their associated environmental values. The six research themes identified are:

planning and management aquifer contamination aquifer integrity aquatic health groundwater and surface water processes health and industry.

This research aims to improve the information base on which future planning and environmental decisions are made by federal, state and territory governments. The interim committee initiated actions that commenced data collection for bioregional assessments which will provide better information for decision makers to ensure protection of water resources. Research findings will be made publicly available on the interim committee’s website <www.environment.gov.au/coal-seam-gas-mining/index.html>.

Develop a communications package (including a dedicated website, publications and other communications materials) to

A website for the interim committee was established in April 2012 and will be updated for the statutory committee when it is established.


inform key stakeholders and the community about the role of the interim committee and the results of their research.

Establish a National Partnership Agreement with the states, through COAG, committing governments to take into account the advice of the committee in their assessment and approval decisions.

A National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development was established through negotiations with relevant state and territory governments. The agreement commits the Australian Government and relevant state and territory governments to taking the advice of the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development into account in their regulatory decisions.


2011–12 Results

Percentage of agreed share of water savings from funded on-farm and off-farm irrigation efficiency projects that are returned to the Commonwealth [%].

100 As at 30 June 2012, 100% of the agreed Commonwealth share of water savings from funded on-farm and off-farm irrigation efficiency projects have been returned to the Commonwealth.

Centres of Excellence for recycling and desalination fully functional.

Yes Both centres are functioning well and are accelerating groundbreaking research in the areas of water recycling and desalination. In 2011–12 the Water Recycling Centre provided $6.3 million to finalise or commission nine projects and the Desalination Centre provided $12.3million in funding for 44 research projects.

Alternative sources of urban water provided through projects [gigalitres].

250 Alternative sources of urban water secured under the Strengthening Basin Communities program, the National Urban Water and Desalination Plan, and the National Water Security Plan for Cities and Towns was 106.3 gigalitres to the end of 2011–12. On target to meet the total volume of alternative sources of urban water secured from these programs when all contracted projects are complete in January 2014.

Water savings from urban programs and projects that aim to promote the efficient use of water [gigalitres].

45 Water savings from the Strengthening Basin Communities program, the National Urban Water and Desalination Plan, and the National Water Security Plan for Cities and Towns was 7.5 gigalitres to the end of 2011–12. The total volume of water savings from the program when all contracted projects are complete in January 2014 will be 60 gigalitres.

Expert Scientific Committee meetings held.

6 The department managed six interim committee meetings during the period 1 January 2012 to 30 June 2012.

Research projects commenced within 60 days of approval by the minister [%].

90 Bioregional assessments through the commencement of data collections and 23 key knowledge gap research projects were all commenced within 60 days of approval by the minister. Information on the research projects can be found on the committee’s website <www.environment.gov.au/coal-seam-gas-mining/index.html>.


From 2011–12 onwards, the department will:

Recoveries contributing towards ‘bridging the gap’, as at 30 June 2012 in long-term average annual yield, include 1087 gigalitres from Restoring the Balance in the Basin water purchases and 271gigalitres from the Sustainable Rural Water Use and Infrastructure Program. Total gap-bridging water recovery is 1522 gigalitres, which includes 164 gigalitres of state government and other recoveries. This is 55 % of the proposed 2750 gigalitre reduction in surface water diversions in the Murray–Darling Basin.

recover water through infrastructure and buyback programs to reduce the gap between current diversions and the Sustainable Diversion limits that will be included in the Basin Plan

report demonstrable environmental Please refer to the Commonwealth Environmental Water Holder Annual


benefits from environmental watering in the Commonwealth Environmental Water Holder’s Annual Report and Outcomes Reports

Report in this chapter and the 2010–11 Commonwealth Environmental Water Holder Outcomes Report published in February 2012. The 2011–12 Commonwealth Environmental Water Holder Outcomes Report will be published by early 2013.

improve the implementation of the Ramsar Convention in Australia.

The department progressed development of:

Australian Ramsar site nomination guidelines wetland fact sheets guidance on the wise use of wetlands the national wetlands policy statement.

The pilot of the Ramsar Rolling Review was completed. Preparations for Conference of the Parties 11, in July 2012, were undertaken.

By 31 December 2012 the department will promulgate effective national water planning guidelines.

The National Water Initiative policy guidelines for water planning and management were agreed by COAG, out of session, in early April 2012.

In 2013–14, the department will conduct a review of bilateral partners’ take-up of Australian water management innovations.

The department commenced a review of its water-related international strategy, which includes analysis of the strategic relevance and mutual benefit gained from bilateral engagements.

By 2014, improvements to the water market in the Murray–Darling Basin will include:

In 2011–12 the department contributed to the development of the Murray–Darling Basin Authority water trading rules in the Basin Plan, which prohibit unreasonable barriers to trade in the Basin.

the removal by states of administrative barriers to trades

completion of 90% of allocation trades in five days

The department continues to work with state and territory governments within the Murray–Darling Basin to ensure that these standards continue to be met consistently by all jurisdictions.

availability to the market of 95% of prices within 24 hours of registration.

The Bureau of Meteorology (BoM) collects information about prices for water trades from state and territory approval authorities and some irrigation infrastructure operators. Price information received from the BoM is publicly available on the National Water Market System website in an accessible format. The department is leading a project to improve pricing transparency through a subgroup of the National Water Thematic Oversight Group, which includes representatives from states and territories. The project is expected to identify possible actions to improve the quality and quantity of price information available to market participants. The department also publishes information about average prices of offers pursued from tenders conducted since January 2010, which are updated as soon as possible after each tender.

In 2015, quantitative and qualitative evidence of additional urban water will be provided by an independent report.

Appropriate data was captured in 2011–12 and preceding years to enable the provision of this report.

By 2017 the department will have agreed with Australian governments’ national guidelines for identifying, classifying and managing the High Ecological Value Aquatic Ecosystems (HEVAE).

Guidelines have been developed for the identification and classification of HEVAE. These are currently subject to approval by the Australian, state and territory governments.

Relevant states have signed the National Partnership Agreement.

Queensland, New South Wales, South Australia and Victoria have signed the National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development. Negotiations with the Northern Territory are continuing. The agreement commits signatories to:

seek advice from the Independent Expert Scientific Committee on


Coal Seam Gas and Large Coal Mining Development (statutory committee) on coal seam gas or large coal mining developments which are likely to have a significant impact on water resources

take account of the statutory committee’s advice in a transparent manner

publish protocols on which projects will be referred to the statutory committee by 30 September 2012.

Expert Scientific Committee advice provided on specific development proposals.

The interim committee received 11 requests for advice on coal seam gas and coal mining development proposals under the EPBC Act. As at 30 June 2012, the interim committee had provided advice on eight of the proposals.

Development of a research strategic plan for 2011–12.

The interim committee developed a Strategic Framework which incorporates the research methodology for research projects commissioned by the interim committee.


2011–12 Results

Percentage increase in irrigation water use efficiency through funded off-farm irrigation projects [%].

15 Australian Government funding provided for off-farm supply system upgrade projects has contributed to an average increase of around 10% in delivery efficiency, ranging between 2% and 29% depending on the irrigation system. This investment in projects within the Murray–Darling Basin is enabling irrigation delivery systems to achieve overall efficiencies equivalent to world best for channel delivery systems.

Percentage increase in irrigation water use efficiency through funded on-farm irrigation projects [%].

15 Australian Government funded on-farm irrigation projects have an estimated average increase in irrigation water use efficiency of26%.

Percentage of irrigation entitlements by volume covered under Modernisation Irrigation plans in the Murray–Darling Basin [%].

80 Met target. The majority of medium to large irrigation water providers in the Murray–Darling Basin now have strategic infrastructure and/or modernisation irrigation plans.

Percentage of local government authorities in the Murray–Darling Basin undertaking funded water management planning [%].

70 Met target. A total of 108 (71%) local government authorities in the Murray–Darling Basin are participating in projects to undertake water management planning.

Operation of the Water Efficiency Labelling and Standards Act 2005

Purpose The Water Efficiency Labelling and Standards Act 2005 (the WELS Act) provides for the operation of a national Water Efficiency Labelling and Standards (WELS) scheme, implemented cooperatively by Australian, state and territory governments.

The scheme aims to reduce the demand for water by requiring that comparative water efficiency information be provided to prospective purchasers of specified water-using products, setting mandatory minimum water efficiency standards in some instances and promoting the adoption of water efficient technologies.

Showers, dishwashers, clothes washing machines, toilet equipment (including urinals) and taps must be registered with the scheme and display a water efficiency rating label when offered for supply. Registration of flow controllers is currently optional. Minimum water efficiency requirements are specified for clothes washing machines and toilets.

From studies undertaken for the department, it is estimated that the current scheme will reduce domestic water use by more than 800gigalitres between 2005 and 2021.

Photo of a front load washing machine with a water rating label. (Mark Mohell)

2011–12 highlights

Joint governments’ response to the independent review of the WELS scheme

In 2010, Dr Chris Guest undertook an independent review (the review) of the first five years of operation of the WELS scheme, consistent with the requirements of section 76 of the WELS Act. The review considered the appropriateness, effectiveness and efficiency of the scheme and made recommendations for its improvement.

The final report on the Independent Review of the Water Efficiency Labelling and Standards Scheme was completed on 30 June 2010. The Standing Council on Environment and Water (SCEW) released a response to the review on 30 November 2011. The final report and response are available at <www.environment.gov.au/welsreview>.

The SCEW agreed to recommendations for a strategic plan and a number of changes to the governance, compliance and administration of the WELS scheme. Changes to the operation of the WELS scheme and supporting legislation are required to implement these recommendations.

In February 2012 the department released a consultation paper to canvass views on the proposed changes to the WELS scheme. Stakeholder forums were held in Brisbane, Sydney and Melbourne in February 2012. A total of 119 submissions were received by the department. The consultation paper and submissions to this paper are available at <www.waterrating.gov.au/publications/consultation-paper.html>.

Water Efficiency Labelling and Standards Amendment (Scheme Enhancements) Bill 2012

The Water Efficiency Labelling and Standards Amendment (Scheme Enhancements) Bill 2012 passed through Parliament on 26 June 2012. The Bill came into effect on 23July2012. It strengthens the national WELS scheme by imposing new enforcement mechanisms and civil penalties, and by redefining ‘supply’.

Other provisions will commence at a later date to be specified through proclamation. These include provisions allowing the minister to determine more details of the WELS scheme, such as the registration of products. The Bill also implements a recommendation of the independent review that provisions for the voluntary registration of products under the scheme be removed. This change is set to commence from 1 November 2013.

WELS Scheme Strategic Plan 2012–15

As recommended by the review, a three-year strategic plan and budget was developed. The 2012–15 WELS Strategic Plan was released in November 2011 and implemented from 1 July 2012. It provides an action plan, budget, timeline, performance measures and responsibilities for the next three years of the scheme. It also provides for a registration fee structure that is to recover 80percent of the WELS scheme’s operating costs, with governments contributing the remaining 20 percent.

The WELS Scheme Strategic Plan 2012–15 is available at <www.waterrating.gov.au/publications/strategic-plan-2012-15.html>.

Changes to the WELS scheme

On 1 November 2011 a new WELS standard took effect through the Water Efficiency Labelling and Standards Determination 2011, which replaced the Water Efficiency Labelling and Standards Determination 2007. The new

standard includes all current amendments (1–5) made to Australian and New Zealand Standard AS/NZS 6400:2005 Water efficient products–Rating and labelling.

Key changes for WELS products in the new standard are listed below.

All clothes washing machines registered from 1 November 2011 with a capacity of 5 kilograms or more must have a water efficiency star rating of at least three stars. Washing machines with a capacity of less than five kilograms must have a water efficiency star rating of at least two and a half stars. On 1 November 2012, registered machines that do not meet these minimum water efficiency standard requirements will be de-registered.

Cold-only connect (no heater) washing machines were added to the scheme. Combination washer/dryers are to be labelled to show the water use of the dryer function as well as the wash

function. WaterMark certification was made a requirement for WELS registration of most WELS products. WaterMark

certification is required by state and territory law at the point of installation for most plumbing products intended for use in the reticulated water supply system. It verifies that the products are fit for purpose.

Introduction of the ability to register and label taps, showers and flow controllers for use in low-pressure environments as well as in the high pressure environment.

Operational aspects of the ActSince 1 July 2005, 23283 product models have been registered under the scheme. The number of product models registered in 2011–12 was 8219.

During 2011–12 the department’s Water Information Line received more than 864 telephone inquiries on its 1800 number regarding the WELS scheme. In addition, WELS scheme staff provided individual assistance to product manufacturers and suppliers, particularly giving guidance on product registrations, through telephone and online enquiries.

Compliance and enforcementThe WELS Act includes a broad range of enforcement mechanisms for managing suspected or confirmed instances of non-compliance. For example, the department may seek an injunction from the Federal Court or issue an infringement notice. The Regulator also has the option to use administrative actions, such as enforceable undertakings as an alternative to prosecution, to help manufacturers, importers and retailers to meet their legal obligations under the WELS Act.

The scheme includes an active compliance inspection program, which involves undertaking Australia wide visits of plumbing products and whitegoods suppliers. In 2011–12 over 176 visits of retail outlets and warehouses were conducted Australia wide.

Enforcement action in 2011–12 included one application to the Federal Court for an order to comply with an enforceable undertaking, and the execution of five warrants.

The Regulator also accepted 17 enforceable undertakings from companies that agreed to improve their business practices and provide awareness training to staff after failing to comply with national water efficiency labelling and standards legislation at their business premises.

All inspections and follow up enforcement actions were undertaken in accordance with the department’s compliance and enforcement policy.

Committees

Water Efficiency Labelling and Standards Officials Group

The Water Efficiency Labelling and Standards Officials Group comprises representatives from the states, territories and Commonwealth to consider matters relating to the review of the WELS scheme. It met on two occasions in 2011–12.

Water Efficiency Labelling and Standards Advisory Group

The Water Efficiency Labelling and Standards Advisory Group comprises representatives from the whitegoods, plumbing, consumer, water and retailing sectors. The advisory group provides advice from stakeholders to the Australian, state and territory governments on a range of matters, including the development of the strategic plan for the WELS scheme for the period 2012–15.

The advisory group met four times in 2011–12 to provide advice on strategic and other policy matters to governments on the management of the WELS Scheme.

Communication

Consumer research

Nationwide research, which included metropolitan and regional locations, was undertaken in late 2011 to assess awareness of the WELS scheme among household consumers (1134 subjects) and to a lesser extent industry (288 subjects). This research included questions about the channels used to obtain information on water efficient products including internet use and has helped to better target communications.

To reveal trends in awareness of the WELS scheme the findings were compared with two earlier rounds of similar research undertaken in 2008 and 2009. Awareness of the scheme’s water rating labels has increased in the period from 2009 to 2011, to 67percent for household consumers and 84percent for industry.

ReportingThis section is prepared in accordance with section 75 of the WELS Act. It covers the operation of the WELS Scheme from 1 July 2011 to 30 June 2012.

Additional informationThe WELS website is at <www.waterrating.gov.au>.

Annual report 2011–12

Commonwealth Environmental Water

Photo of a Straw-necked ibis (Threskiornis spinicollis) nests and eggs, Gywdir wetlands, March 2012. Permission granted to use the photograph from the Commonwealth Environment Water Office. (Andrew Huxham)

Abbreviations

Basin Murray–Darling Basin

Department, the Australian Government Department of Sustainability, Environment, Water, Population and Communities

Holder Commonwealth Environmental Water Holder

Standing Committee House of Representatives Standing Committee on Regional Australia

Glossary

Basin states refers to those states and territories that cover the Murray–Darling Basin: the Australian Capital Territory, New South Wales, South Australia, Queensland and Victoria.

Commonwealth environmental water refers to the water managed by the Commonwealth Environmental Water Holder to protect and restore rivers, wetlands and other environmental assets in the Murray–Darling Basin.

Commonwealth Environmental Water Holder is the statutory position that heads Commonwealth Environmental Water Office.

Contents

Executive summary

Overview for 2011–12 Outlook for 2012–13

The Commonwealth Environmental Water Office

Establishment of the Commonwealth Environmental Water Office Improving transparency, accountability and stakeholder engagement Advisory groups Working with others

Commonwealth environmental water in 2011–12

Commonwealth environmental water available for use in 2011–12 Use of Commonwealth environmental water in 2011–12 Catchment summaries 166 Carryover of Commonwealth environmental water

Progress on key issues

2011–12 Portfolio Budget Statement key performance indicators Priorities for 2011–12 Draft Basin Plan and environmental watering plan Business and information systems Commonwealth environmental water trading framework Monitoring, evaluating and reporting on the use of Commonwealth environmental water Environmental water shepherding Management of Commonwealth environmental water Transparency and accountability in the use of Commonwealth environmental water Commonwealth environmental water reporting Environmental Water Holdings Special Account 2011–12

Tables

Table 1 Environmental Water Holdings Special Account expenses Table A1 Commonwealth Environmental Water Office holdings in the Murray–Darling basin (at 30June 2012) Table A2 Summary of the volume of Commonwealth environmental water delivered in the Murray–Darling

Basin in 2011–12 Table A3 Commonwealth environmental watering actions for the Border Rivers catchment in 2011–12 Table A4 Commonwealth environmental watering actions for the Condamine–Balonne catchment in 2011–12 Table A5 Commonwealth environmental watering actions for the Gwydir catchment in 2011–12186 Table A6 Commonwealth environmental watering actions for the Lachlan catchment in 2011–12187 Table A7 Commonwealth environmental watering actions for the Macquarie–Castlereagh catchment in 2011–

12 Table A8 Commonwealth environmental watering actions for the Moonie catchment in 2011–12 Table A9 Commonwealth environmental watering actions for the Warrego catchment in 2011–12 Table A10 Commonwealth environmental watering actions for the Broken, Campaspe, Goulburn, Loddon and

Ovens catchments in 2011–12 Table A11 Commonwealth environmental watering actions for the Murray catchment in 2011–12 Table A12 Commonwealth environmental watering actions for the Murrumbidgee catchment in 2011–12 Table A13 Summary of Commonwealth environmental water carryover into 2012–13 Table A14 Ecological and management objectives for environmental water use under different water

availability scenarios Figure 1 Key environmental water responsibilities Figure 2 Commonwealth environmental water availability and use since 2008–09

Executive summary

Overview for 2011–12

The Commonwealth Environmental Water Office is led by, and supports, the Commonwealth Environmental Water Holder in the performance of statutory responsibilities under the Water Act 2007. Its objectives are to protect and restore rivers, wetlands and other environmental assets in the Murray–Darling Basin (the Basin).

Since 2009, 1233gigalitres of Commonwealth environmental water was delivered for the environment across the Basin, of which 680 gigalitres were delivered in 2011–12. Commonwealth environmental water has been delivered together with more than 133.4 gigalitres of water from delivery partners.

Higher than average rainfall since 2010 brought about wetter than average conditions in most catchments in the Basin. Higher river flows and wetter soil conditions have substantially helped the environmental recovery of freshwater ecosystems in many Basin catchments, and the addition of Commonwealth environmental water helped to consolidate these recovery processes. Commonwealth environmental water has also been actively managed to mitigate potential threats to some catchments, such as hypoxic blackwater events, which resulted from natural flooding. The

Commonwealth Environmental Water Office will continue to work with delivery partners and the Basin states to support an ecological recovery that builds the resilience of Basin rivers and wetlands to cope with future dry conditions.

The Commonwealth Environmental Water Office now manages 1368 gigalitres of water entitlements, which has a long-term average yield of 981 gigalitres per year. This comprises 41 entitlement types across 18 catchments in four states.

The volume of water allocations available against these entitlements in 2011–12 was 980gigalitres; 331gigalitres of Commonwealth environmental water was carried over from 2010–11. In total, 1311gigalitres of water was available for environmental management in the year, of which 53per cent was used. Based on preliminary figures, the use in New South Wales and Victoria by all entitlement holders is likely to be around 45 per cent. The balance of Commonwealth environmental water was carried over to support environmental watering opportunities in 2012–13. The wetter than average conditions during 2011–12 contributed to 41 per cent of the carryover being held in the southern connected Basin and 59 per cent of the carryover being held in the northern Basin. The carried-over water is less than three percent of the public storage capacity in the Basin.

During the year, steps were made to build additional institutional arrangements. This recognises the expanding scale, function, range of watering possibilities and complexity of the activities and responsibilities of the Commonwealth Environmental Water Office.

The Australian Government’s response to the House of Representatives Standing Committee on Regional Australia report Of drought and flooding rains: inquiry into the impact of the guide to the Murray–Darling Basin Plan in regional Australia (the Windsor Inquiry; see Resources) led to the implementation of a number of initiatives. One of these was the establishment of the Commonwealth Environmental Water Office in December 2011. The office operates as a distinct entity within the Australian Government Department of Sustainability, Environment, Water, Population and Communities. This provides clear separation between the department’s water policy and program roles, and the statutory position of the Commonwealth Environmental Water Holder. The Commonwealth Environmental Water Holder has been made substantive a dedicated position; previously, the statutory office holder had other duties.

Other initiatives included the establishment of a Commonwealth Environmental Water Stakeholder Reference Panel. An advisory council will be established in 2012–13. The council and panel will provide specialist expertise to the Holder. The establishment of a Stakeholder Engagement and Reporting section in the Commonwealth Environmental Water Office increases transparency, accountability and stakeholder engagement.

A number of other key communication and governance activities have also been completed or progressed:

publication of the Commonwealth Environmental Water: Monitoring, Evaluation Reporting and Improvement Framework, and publication of the Commonwealth Environmental Water—trading arrangements discussion paper (see Resources)

development of the Environmental Asset Database by the Commonwealth Environmental Water Office and the Murray–Darling Basin Authority to assist both agencies to store and retrieve the best available, up-to-date information on the environmental assets of the Murray–Darling Basin

continued use of the Commonwealth Environmental Water Office website as a primary means of providing stakeholders with timely information on key issues, including holdings, trading, carryover and new publications

continued development of sound working relationships with other water holders in the Basin states and their respective agencies

continued engagement of stakeholders at a local level to seek their advice, comments and participation in the use of Commonwealth environmental water.

Mr Ian Robinson, the first Commonwealth Environmental Water Holder, moved from the position in May 2012 to take up other duties in the Australian Government. Mr Robinson played the pivotal role in establishing the new function of the Commonwealth Environmental Water Office from 2008. This marks an important contribution to reform in the Basin and institution building in the Australian Government.

Outlook for 2012–13

The Commonwealth Environmental Water Office will continue to work with its partners in the Basin states and local catchments to build on the improved ecological conditions that have resulted from the past two years of wetter

conditions. The return of drier conditions to areas of the Basin during 2012–13 may result in environmental watering options that have not been available recently because of the wet conditions.

Taking into account expected allocations, water carried over from 2011–12 and potential growth of the Commonwealth holdings of water entitlements, it is anticipated that the volume of Commonwealth environmental water available in 2012–13 will be greater than that available in 2011–12. An increased range of water use options may become possible and be actively managed, especially if Basin catchments return to drier conditions.

Before the 2012–13 Budget, Commonwealth Environmental Water Office activity was reported as part of the department’s ‘Outcome 4, Program 4.1: Water reform’. To provide greater transparency and accountability, a new outcome has been established in the department’s 2012–13 Portfolio Budget Statements (see Resources) for Commonwealth Environmental Water: Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth environmental water. More details on the key priorities for the Commonwealth Environmental Water Office in 2012–13 are provided in the Commonwealth Environmental Water Office 2012–13 business plan.

The Commonwealth Environmental Water Office is part of a broader water reform program for the Basin. The Murray–Darling Basin Authority is responsible under the Commonwealth Water Act 2007 for developing a Basin Plan that sets sustainable diversion limits and includes an environmental watering plan. The Commonwealth Environmental Water Holder must manage the water holdings in accordance with the environmental watering plan. It is anticipated that the Basin Plan will be made in 2012–13, and the transition will begin to the environmental water management framework in the Basin Plan.

Until the Basin Plan is developed, the use of Commonwealth environmental water will continue under established arrangements to deliver environmental water to protect and restore the environmental assets of the Basin. In consultation between the Murray–Darling Basin Authority and the states, communities and industries in the Basin, watering actions will continue to be directed to the objectives set out in A framework for determining Commonwealth environmental water use (see Resources). In assessing potential watering actions for use of environmental water, consideration will also be given to Basin-wide annual priorities, and to identified needs of local communities and catchments. Throughout this process, the Commonwealth Environmental Water Office will continue to build its institutional arrangements, including local engagement, transparency and accountability to key stakeholders.

David Parker Commonwealth Environmental Water Holder

August 2012

The Commonwealth Environmental Water Office

Establishment of the Commonwealth Environmental Water Office

The House of Representatives Standing Committee on Regional Australia (the Standing Committee) produced a report Of drought and flooding rains: inquiry into the impact of the guide to the Murray–Darling Basin Plan in regional Australia (the Windsor Inquiry). As part of its response to this report, the Australian Government agreed to establish a separate Commonwealth Environmental Water Office. The office was established in December 2011 and operates as a distinct entity within the Australian Government Department of Sustainability, Environment, Water, Population and Communities.

The standing committee recommended a focus on:

developing scientific and engineering expertise to deliver an efficient environmental watering plan improving knowledge of the water needs of environmental assets and how best to manage them transparency and accountability to key stakeholders, including the community.

Improving transparency, accountability and stakeholder engagement

Consistent with the recommendations of the standing committee, the Commonwealth Environmental Water Office is building on existing communication and community engagement activities by:

establishing new advisory panels that bring together stakeholders with an interest and expertise in the use of Commonwealth environmental water in the Basin (see Advisory groups, below)

improving the Commonwealth Environmental Water Office website to include more detailed information about environmental watering in each catchment in the Basin and provide an avenue for people to contribute to decisions on the use of Commonwealth environmental water

regularly engaging with local stakeholders on a catchment by catchment basis releasing publications and engaging in targeted consultation on the approach to key strategic issues, including

water use, water trade, water shepherding, and monitoring and evaluation.

A Stakeholder Engagement and Reporting section has been created within the Commonwealth Environmental Water Office to manage stakeholder issues and ensure that accurate and timely information is conveyed to stakeholders. The section will be responsible for improving information and communication to stakeholders through the website, the Commonwealth environmental water annual report and the 2010–11 Commonwealth environmental water outcomes report.

Advisory groups

The Commonwealth Environmental Water Holder’s decisions are to be informed by three advisory groups:

Commonwealth Environmental Water Scientific Advisory Panel Commonwealth Environmental Water Advisory Council Commonwealth Environmental Water Stakeholder Reference Panel.

In May 2012 the Commonwealth Environmental Water Office began to establish the Advisory Council and Stakeholder Reference Panel, with the aim of providing advice to the Holder on the use and management of Commonwealth environmental water and stakeholder engagement. These two groups complement the Scientific Advisory Panel.

The Commonwealth Environmental Water Scientific Advisory Panel (formerly known as the Environmental Water Scientific Advisory Committee) is an independent panel of scientists with expertise in fields such as hydrology, limnology, river operations management, river and floodplain ecology, and the management of aquatic ecosystems. The panel was established in 2008 to advise the Holder on the use of environmental water, including:

methods for determining the relative priority of environmental assets areas that merit additional investigation, including additional research assessment of the benefits of the use of environmental water.

The members of the panel are:

Professor Angela Arthington, Australian Rivers Institute, Griffith University Mr David Dole, Consultant to the Murray–Darling Basin Authority Dr Ben Gawne, Murray–Darling Freshwater Research Centre Professor Barry Hart, Director, Water Science Pty Ltd Professor Richard Kingsford, University of New South Wales Dr Michael Stewardson, University of Melbourne Professor Keith Walker, University of Adelaide Professor Robyn Watts, Charles Sturt University.

The Commonwealth Environmental Water Advisory Council will provide independent high-level advice to the Holder on:

river operations and water delivery portfolio management financial management and governance communications and stakeholder engagement.

It is anticipated that the membership of the council will be finalised and the council will have held its first meeting by early 2013. The members of the council will be selected to provide a balance of expertise in the above disciplines.

The Commonwealth Environmental Water Stakeholder Reference Panel formalises previous arrangements used to consult with stakeholders. The panel will advise the Holder on a range of stakeholder issues, including:

information and views on Commonwealth environmental water identification of priority stakeholder issues involving Commonwealth environmental water opportunities and methods for engaging stakeholders on Commonwealth environmental water assessment of the effectiveness of stakeholder engagement about Commonwealth environmental water.

The members of the panel are:

Mrs Alex Anthony, Murray Catchment Management Authority Mrs Joan Burns, individual Mr Tom Chesson, National Irrigators’ Council Mr Terry Korn, Australian Floodplain Association Mr Tim Napier, Border Rivers Food & Fibre Mrs Kathryn Ridge, individual Mr David Robinson, National Farmers’ Federation Mr Jonathan LaNauze, Australian Conservation Foundation Mrs Bev Smiles, Inland Rivers Network Mrs Sharon Starick, South Australian Murray–Darling Basin Natural Resources Management Board Mr Jason Wilson, Northern Murray–Darling Basin Aboriginal Nations.

Working with others

Landholders, natural resource management boards, catchment management authorities, local groups, state governments and others are involved in Commonwealth environmental water management, and the Commonwealth Environmental Water Office is committed to effective collaboration and stakeholder engagement to improve environmental water outcomes. This includes helping to determine where water is best used, delivering that water and monitoring the outcomes. The active management of a number of Commonwealth environmental watering actions to adapt to wet conditions during 2011–12 demonstrates the extent of these working relationships. Staff from the Commonwealth Environmental Water Office regularly work with landowners, delivery partners and other key stakeholders.

Figure 1 shows the arrangements for the management of Commonwealth environmental water, including the relationships between the Commonwealth Environmental Water Holder, the Commonwealth Environmental Water Office, the department, delivery partners and the Murray–Darling Basin Authority.

Figure 1: Key environmental water responsibilities

Commonwealth environmental water in 2011–12

Commonwealth environmental water available for use in 2011–12

Improved rainfall in 2011–12 and an increased size of Commonwealth environmental water holdings made a significant amount of water available for use.

The Commonwealth now holds 1368 gigalitres of registered water entitlements, which will deliver, on average, 984 gigalitres of water to the environment each year. Commonwealth environmental water holdings in the Murray–Darling Basin (at 30 June 2012) are listed in Appendix A.

Figure 2: Commonwealth environmental water availability and use since 2008–09

Notes: Data have been updated since previous annual reports in accordance with revised accounting treatment of some entitlements and water use. Carryover figures do account for evaporative losses.

Use of Commonwealth environmental water in 2011–12

Widespread rainfall throughout Basin catchments changed the objectives of, opportunities for, and limitations on the use Commonwealth environmental water in 2011–12. In some cases, Commonwealth environmental watering events were suspended in response to very wet conditions and prospective rainfall events (see Catchment summaries). Following natural flooding in some areas, Commonwealth environmental water was used to help alleviate blackwater events (see Case study 1).

Commonwealth environmental water and 2011–12 floods

In the northern Basin, very high rainfall in the Queensland and northern New South Wales Murray–Darling Basin during late January and early February 2012 resulted in major flooding events across the Warrego, Condamine–Balonne, Moonie, Namoi, Gwydir and Barwon–Darling catchments. The Macquarie and Lachlan catchments experienced similar high rainfall at the end of February to early March 2012, also resulting in major flooding.

In the southern Basin, significant rainfall occurred in the Murray and Murrumbidgee catchments from February to March 2012. This led to high flows in the Murray system and major flooding in Broken Creek and the Murrumbidgee system. Some floodplain areas that were inundated are unlikely to have received water since before the drought.

In both the northern and southern Basin, delivery of Commonwealth environmental water was suspended in all areas that had a heightened risk to people or property due to high rainfall. The only action to continue was in the southern connected Basin in Jimaringle and Cockran creeks, where there was low risk.

Catchment summaries

Northern catchments

Barwon–Darling catchment

No Commonwealth environmental water was used in the Barwon–Darling system in 2011–12 because of the scale of natural flooding in the system, which meant that demand for additional environmental water was low. Water credited to the Commonwealth’s Barwon–Darling allocation accounts in 2011–12 will be carried over for use under permanent water shepherding arrangements in future years. Water shepherding arrangements are currently being developed under a Commonwealth–New South Wales memorandum of understanding and will form the primary means of managing Commonwealth environmental water in the Barwon–Darling catchment.

Large floods in the Gwydir, Namoi and Border Rivers catchments in November and December 2011 resulted in major flooding in the Barwon and Darling rivers. Additional heavy rainfall and flooding across the northern Basin during January and February 2012 generated a much larger flood that flowed through the Menindee Lakes. Flows peaked at Bourke in early March at around 240gigalitres per day. This natural flooding event caused continued high releases from the Menindee Lakes Scheme into the lower Darling River and Great Darling Anabranch. Since 2010 the lower Darling River has experienced three high flow events, resulting in end of system flows in the Great Darling Anabranch for the first time in 10 years.

Border Rivers catchment

During 2011–12, 1 gigalitre of unregulated water was used to support natural flows that promote native fish movement and maintain high value waterholes and riparian vegetation in the Sundown National Park (see Appendix C, Table A3). No Commonwealth environmental watering occurred in the Border Rivers catchment before 2011–12.

Condamine–Balonne catchment

The lower Balonne experienced a series of large natural flows over the summer of 2011–12. The first flow, in early December 2011, was quickly followed by a second smaller peak. Heavy rainfall in northern New South Wales and south-west Queensland in late January 2012 (particularly in the Maranoa system) then culminated in record flood levels

at St George (around 300 gigalitres per day) in early February 2012. The 2011–12 floods also in resulted in extensive wetting of the Lower Balonne Floodplain.

Two small flow events in March and early April 2012 triggered water harvesting (see Appendix C, Table A4). In the Queensland lower Balonne area, Commonwealth environmental water (3.1 gigalitres) contributed to inundation of the Culgoa Floodplain and Narran Lakes (water was only taken outside periods of major flooding). Nebine Creek, which had essentially been dry since a large flood in March 2010, received 0.1 gigalitres in February 2012.

Gwydir catchment

The Gwydir catchment experienced significant floods in November and December 2011 and again in late January to early February 2012, with flows of approximately 580 gigalitres reaching the Gwydir wetlands (at Yarraman).

During 2011–12 a total of 1.2gigalitres of Commonwealth environmental water was delivered (in early October 2011, before the floods) for use in the Gwydir Wetlands (see Appendix C, Table A5). Commonwealth water was delivered in conjunction with New South Wales water and natural flows to inundate core wetland areas. Active management in response to rainfall and updated rain forecasts for the catchment resulted in this watering action being suspended in mid-October 2011.

Lachlan catchment

Heavy rainfall during February and March 2012 resulted in major flooding in the Lachlan catchment. This event led to Wyangala Dam spilling for the first time in more than a decade. Commonwealth environmental water in the Lachlan was delivered by mid-December 2011, before these flood events (see Appendix C, Table A6).

A total of 3.9gigalitres of Commonwealth environmental water was made available to provide flows through Muggabah Creek near Booligal. This action built on previous environmental watering activities and 2010–11 inflows in the Merrimajeel system. The action aimed to improve system connectivity, support wetland vegetation and provide habitat for bird species.

Merrimajeel Creek received 4.9gigalitres of Commonwealth environmental water to support habitat for a wide variety of wetland-dependent species, including threatened species and migratory birds. Merrowie Creek (Tarwong Lakes) also received 11.3 gigalitres of Commonwealth environmental water to prolong the inundation of Lake Tarwong. The aim of this watering action was to improve the health of wetland vegetation and provide habitat for colonial nesting birds and Sloane’s froglet.

Macquarie–Castlereagh catchment

The Macquarie catchment received widespread rainfall of more than 150mm in early March 2012. This rainfall resulted in high streamflows in the Macquarie River, its tributaries and effluent creeks, and the Macquarie Marshes.

Commonwealth environmental water provided 35gigalitres to the Macquarie Marshes from September 2011, and five gigalitres from December 2011. Commonwealth environmental water deliveries in the Macquarie ceased at the end of January 2012 (before the flood events). The aim of these watering actions was to build on the improved wetland condition that resulted from the flows of 2010–11 (see Appendix C, Table A7).

Moonie catchment

The lower areas of the Moonie catchment received very heavy rainfall in late January and early February 2012, which generated major flooding in the lower catchment. Flows at Nindigully peaked on 5 February 2012 at just over 41 gigalitres per day. This is the second highest flood on record; it is exceeded only by the very large floods (more than 80 gigalitres per day) in March 2010.

Commonwealth environmental water in the Moonie River was delivered by late December 2011, before these flood events. A total of 1.4 gigalitres of unregulated Commonwealth environmental water was provided in the Moonie River to support the first significant post winter flow event in the system, and associated migration and spawning cues for native fish (see Appendix C, Table A8).

Warrego catchment

Exceedingly heavy rainfall in late January and early February 2012 in headwater and mid catchment areas caused a very large flood through the Warrego system. Flow at Wyandra in the midcatchment peaked at just over 300gigalitres per day, which was only slightly below the highest flood peak record at Wyandra. The February–March floods provided significant inflows to the nationally significant Lower Warrego distributary system, including the Cuttaburra Basin, and to the Western Floodplain on Toorale Station.

Commonwealth environmental water provided 33.8gigalitres in the Warrego catchment in 2011–12 (see Appendix C, Table A9), comprising the following:

Queensland–Warrego: before major flooding, 16 gigalitres of Commonwealth environmental water supported flows along the main stem of the river, connecting waterholes. Take for instream purposes was suspended when major flood levels at Charleville were reached. After this major flooding receded, an additional 11.2 gigalitres was taken in the Queensland Warrego.

New South Wales–Warrego (Toorale): 17.8 gigalitres of water were used at Toorale Station to contribute to instream watering in the lower Warrego River and the lower Darling River, and to inundate waterbird habitat and key floodplain vegetation communities of the Western Floodplain.

Southern catchments

Broken, Campaspe, Goulburn, Loddon and Ovens catchments

Rainfall throughout 2011–12 was above average, resulting in high flows in all northern Victorian rivers and significant inflows into storages, particularly Lake Eildon and Lake Eppalock. High rainfall during February and March 2012 resulted in flooding along Broken Creek. Active management allowed Commonwealth environmental watering actions to be suspended in a number of the northern Victorian catchments in response to increased natural flows.

Environmental water delivery in the Goulburn and Campaspe rivers occurred in combination with other releases by the Victorian Environmental Water Holder and the Living Murray program, and complemented consumptive deliveries by Goulburn–Murray Water to maximise environmental benefits and achieve outcomes at multiple sites. Delivery has been coordinated by the regional catchment management authorities.

A total of 152.5 gigalitres of Commonwealth environmental water was delivered to these catchments during 2011–12 (see Appendix C, Table A10). A large proportion of this total was delivered in the Goulburn catchment. These watering actions contributed to maintaining aquatic habitat and supporting fish recruitment, riverine vegetation and ecosystem function.

The Commonwealth environmental water actions undertaken in the Goulburn and Broken Creek systems during 2011–12 also provided more than 94 gigalitres of return flows to the Murray River system. These large-scale, multisite environmental watering actions are capable of providing system-wide environmental benefits.

Murray catchment

Above-average rainfall in the Murray catchment during March and April 2012 resulted in high flows along the Murray River from Hume Dam to South Australia and in the Edward–Wakool system. Active management resulted in a number of Commonwealth environmental watering actions being suspended in certain areas in response to the increased natural flows, and the potential for an unacceptable risk to people or property.

Photo of Jimaringle Creek, an ephemeral watercourse in the Edward–Wakool River system, before (left image—2March 2012) and after (right image—11April 2012) environmental watering (jointly provided by the Commonwealth and New South Wales). Permission granted to use the photograph from the Murray Catchment Management Authority. (Josh Campbell)

During 2011–12 a total of 343.4 gigalitres of Commonwealth environmental water was delivered to the Murray catchment (see Appendix C, Table A11). These watering actions supported multiple environmental outcomes in the River Murray Channel, Lower Lakes and Coorong in South Australia. Outcomes included the provision of fish refuge

and replenishment flows to reduce the impact of blackwater events that occurred in the catchment as a result of the natural flooding events.

Murrumbidgee catchment

The Murrumbidgee catchment has experienced two large floods in the past two years. The flood event that commenced in March 2012 peaked at Wagga Wagga at more than 400gigalitres per day, which is the highest flow since 1974. Commonwealth environmental watering actions were actively managed (actions were cancelled or suspended) to account for the wet conditions throughout the catchment.

A total of 83gigalitres of Commonwealth environmental water was delivered to the Murrumbidgee catchment during 2011–12 (see Appendix C, Table A12). These watering actions provided connectivity of waterways, and supported wetland habitat and aquatic fauna, including small-bodied native fish.

Case Study 1: Providing fish refuge from the impact of hypoxic blackwater in the Murray River

Blackwater is the result of a natural process that occurs following the decay of organic material, such as leaf litter, that is washed into wetlands and waterways by floods. As the organic matter decays, oxygen held in the water is sometimes consumed faster than it can be replenished. The decay process darkens the water, turning it black. Blackwater with low dissolved oxygen is termed ‘hypoxic blackwater’. The resulting low levels of dissolved oxygen in the water can stress or kill fish and other aquatic animals.

The inundation of floodplain areas along the Murrumbidgee River following heavy rainfall during March and April 2012 led to significant hypoxic blackwater levels in the Murrumbidgee River. The hypoxic blackwater had the potential to severely affect aquatic animals where it flowed into the Murray River. As the lower Murrumbidgee River was already in a state of natural flooding, environmental water could not be used in the Murrumbidgee River to help dilute areas of hypoxic blackwater occurring in the river during its peak. Instead, Commonwealth environmental water was provided to maintain flows in the Murray River at levels that would help to dilute hypoxic blackwater flowing out of the Murrumbidgee River.

Monitoring results on the Murray River on 8 May 2012 showed that:

immediate and substantial mixing occurred within 170metres of the junction of the Murray and Murrumbidgee rivers—five kilometres downstream of the confluence of the two rivers, there was a complete mixing of water

although it was not possible for the additional flows of Commonwealth environmental water to completely counteract the negative impacts of hypoxic blackwater, these flows did maintain the river at levels that rapidly improved dissolved oxygen levels and created refuge areas of suitable habitat for fish and other aquatic species.

Hypoxic blackwater events can cause stress to fish, crayfish and other aquatic animals. (Murray–Darling Freshwater Research Centre)

Carryover of Commonwealth environmental water

Carryover is provided for in regulated parts of the Murray–Darling Basin. It allows water users to hold water in storages so that it is available in subsequent years. Carryover provides water users with greater flexibility to manage their own water availability across years.

Carryover governance

The Basin states have created rules that apply to the carryover of water. The rules manage the impact that water users may have on other users through their carryover decisions. The Commonwealth Environmental Water Office operates under the same rules, and pays the same fees and charges associated with its water as all other water entitlement holders. The Commonwealth can carry water over in the same way as when the water entitlements were managed for agricultural use:

Carryover was previously available to the water entitlements now held by the Commonwealth, and acquisition of water for environmental purposes does not affect the maximum carryover in dams.

The Commonwealth, like any other water holder, cannot fill up dams to the exclusion of other water users.

The Commonwealth Environmental Water Office will report each year on the volume of water that has been carried over on each entitlement type held in the Basin. Over the longer term, it is expected that the percentage of Commonwealth environmental water carried over will be similar to that of other water users, although, as for all water users, it will vary from year to year.

Commonwealth carryover in 2011–12

In 2011–12 many environmental requirements were met through natural high river flows and flooding. In very wet years, it makes sense to carry over some environmental water so that it is available in future years when it may be of more environmental benefit. The Commonwealth Environmental Water Office carried water over into 2011–12 and will carry water over into 2012–13 in many Basin catchments because use in future years is likely to produce more environmental benefit than further use in years with very high river flows.

There were higher volumes of carryover of Commonwealth environmental water into 2012–13 than in 2011-12. This is consistent with the approach of other users as there have been large inflows into storages (and therefore increases in allocations), while there has been relatively low water demand.

The Commonwealth Environmental Water Office will carry 615gigalitres (net) over into 2012–13 (see Appendix D). This is held across 11 catchments and is equivalent to about three percent of the total public storage capacity across the Basin. The wetter than average conditions during 2011–12 contributed to 41 per cent of the carryover being held in the southern connected Basin and 59 per cent of the carryover being held in the northern Basin.

Photo of part of the lower Murrumbidgee River catchment after Commonwealth environmental watering, February 2012. Permission granted to use the photograph from the Commonwealth Environmental Water Office. (Simon Banks)

Progress on key issues

2011–12 Portfolio Budget Statement key performance indicators

Outcomes against the key performance indicators for Commonwealth Environmental Water Office, as noted in the 2011–12 Portfolio Budget Statement for the department, are reported in two areas:

Environmental watering actions, including a description of the watering actions undertaken and the objectives of those actions, are reported on the Commonwealth Environmental Water Office website <www.environment.gov.au/ewater/news/index.html> and in this annual report.

The outcomes achieved in terms of improved health of rivers and wetlands are published in the 2011–12 Commonwealth Environmental Water outcomes report (to be published in early 2013).

Priorities for 2011–12

The priorities for the Commonwealth Environmental Water Office in 2011–12, as described in the Commonwealth Environmental Water Office 2011–12 business plan, were to:

use Commonwealth environmental water to meet environmental needs, while ensuring that decision making is carried out in a consistent, rigorous, transparent and accountable manner (see Management of Commonwealth environmental water and Business and information systems, below)

develop water use options and work towards resolving operational or institutional constraints on the delivery of water, including taking a more strategic approach with the development of 12-month water use plans and a five-year portfolio management strategy (see Business and information systems)

increase internal capabilities for the effective management of Commonwealth environmental water, including finalising an Environmental Asset Database, and scoping an Environmental Water Management System and associated standard business and information processes (see Business and information systems)

provide input into Murray–Darling Basin planning, particularly the Basin Plan, and align the management of Commonwealth environmental water with the proposed Basin Plan and environmental watering plan (see Draft Basin Plan and environmental watering plan)

further develop the approach to managing the portfolio of Commonwealth environmental water assets, including considering a trading strategy (see Commonwealth environmental water trading framework)

implement a monitoring, evaluation and reporting framework to provide a strategic approach to evaluating the use of Commonwealth environmental water (see Monitoring, evaluating and reporting on the use of Commonwealth environmental water)

implement water shepherding arrangements that provide for legal protection, effective use and accurate accounting of Commonwealth environmental water used in unregulated rivers, including implementing arrangements under New South Wales and Queensland water shepherding agreements (see Environmental water shepherding, below)

increase stakeholder and community engagement activities by improving the provision of information, more actively seeking local suggestions for water use, and strengthening and fostering new relationships across the Basin (see Working with others, above).

Draft Basin Plan and environmental watering plan

During 2011–12 the Commonwealth Environmental Water Office participated in discussions with the Murray–Darling Basin Authority, the Basin states and other Basin stakeholders to inform the development of relevant parts of the draft Basin Plan. Representatives from the department and the Commonwealth Environmental Water Office have been present at most public meetings regarding the draft Basin Plan held in conjunction with the Murray–Darling Basin Authority. Once the Basin Plan comes into effect, Commonwealth environmental water must be managed in accordance with the environmental watering plan. Until the Basin Plan is developed, Commonwealth environmental water will continue to be used in line with established arrangements (see Commonwealth environmental water decision-making framework).

The Murray–Darling Basin Authority’s assessment of environmental water requirements across the Basin will also be used to inform water use decision making. This assessment underpins the proposed sustainable diversion limits and includes information on required flow rates and timing at key sites, as well as constraints on water use.

Business and information systems

Section 105(2)(c) of the Water Act 2007 requires the Commonwealth Environmental Water Holder to maintain an up-to-date record of the holdings. Currently, a register exists for the Commonwealth Environmental Water Office holdings. However, growth in the holdings and volume of water use has led to a need to develop a more sophisticated management system to manage workflows and a broader range of information associated with the holdings. A project is under way to deliver an environmental water management system, incorporating an upgraded environmental water holdings database.

The management system will serve as the user interface for both the upgraded holdings database (information on water holdings) and an environmental asset database (information on environmental assets, water use and environmental outcomes). The system will support data retrieval, customised querying and reporting, tracking of watering actions and comprehensive workflow management.

A scoping and planning phase in 2011–12 resulted in the preliminary design of the management system. Strategic input from subject matter experts and key stakeholders from the Commonwealth Environmental Water Office and departmental corporate areas defined the business requirements and system functionality that are required to meet the operational needs and statutory reporting requirements of the office. The project has progressed into the next phase of development and implementation. In this phase, experienced software development partners and consultants will be engaged to produce the detailed system design, build the information technology solutions and implement the management system. The environmental asset database has been developed by the Commonwealth Environmental Water Office and the Murray–Darling Basin Authority to assist both agencies to store and retrieve the best available, up-to-date information on the environmental assets of the Murray–Darling Basin. The database will support the decisions of each agency by providing information on the management of environmental assets in the Basin and the use of Commonwealth environmental water to protect and restore the health of these assets. The database will also assist both agencies to deliver a consistent and transparent approach to environmental water management, and to identify key data gaps and future information needs. Development of the database was completed during 2011–12 and implementation, including training and data migration, has begun.

Commonwealth environmental water trading framework

The management of Commonwealth environmental water requires ongoing assessment of options, including whether water should be used within the current year or carried over for use in future years, or whether trade (disposal and acquisition) should occur. Under the Water Act 2007 Commonwealth environmental water can only be traded with the objective of improving environmental outcomes and if it cannot be carried over. Trade has not yet been used to sell Commonwealth environmental water allocations or entitlements.

To help inform the development of water trading arrangements, a discussion paper on trading Commonwealth environmental water (see Resources) was released for consultation between November 2011 and May 2012. The discussion paper sought stakeholder views on the trading of Commonwealth environmental water.

Forty-three submissions were received on the discussion paper from a range of stakeholders, including national and state industry groups, irrigation corporations, state government agencies, water brokers and individuals. The majority of submissions either explicitly supported or were generally in agreement with trading by Commonwealth Environmental Water Office. Most submissions indicated that the discussion paper was a positive step in developing a trading framework. Copies of the discussion paper and a summary of the submissions on the discussion paper can be found on the Commonwealth Environmental Water Office website.

The Commonwealth Environmental Water Office will release a position paper in 2012 that will include its responses to the issues raised in the submissions. This will be used in the development of operating rules that will establish the general framework within which trade will occur.

Monitoring, evaluating and reporting on the use of Commonwealth environmental water

In May 2012 the Commonwealth Environmental Water Office published a Monitoring, Evaluation, Reporting and Improvement (MERI) Framework (see Resources) which will support the efficient and effective use of Commonwealth environmental water, and demonstrate the achievement of environmental outcomes over the long term. The framework incorporates comments from a range of stakeholders, following the release of a discussion paper in June 2011. It will be amended from time to time to ensure that it remains consistent with the final Basin Plan. Key elements of the framework are already in place, and it will continue to be implemented as more water is delivered. The framework will be implemented to align with the three levels of planning associated with the use of Commonwealth environmental water (Basin Plan, long term portfolio management strategy and annual water use options) and will include operational, intervention and program-level monitoring. The framework outlines an approach that will:

support accountability and good governance support adaptive management help build foundational knowledge.

Operational monitoring will continue to be put in place by delivery partners for all Commonwealth environmental watering actions, to ensure that water is delivered as planned and without unintended consequences.

Intervention monitoring, which considers the ecological response to water, has been commissioned by the Commonwealth Environmental Water Office to examine ecological responses to Commonwealth environmental watering actions. Monitoring projects are currently being undertaken in key areas across the Basin, including in the Murrumbidgee, Murray and Goulburn catchments. The key reports from these projects are available from the Commonwealth Environmental Water Office website.

The Commonwealth Environmental Water Office is continuing to work with key partners, including the Murray–Darling Basin Authority, to establish long term monitoring and evaluation in some key areas where Commonwealth environmental water is used.

Environmental water shepherding

Water shepherding relates to the use of Commonwealth environmental water in unregulated catchments. In unregulated catchments, the Commonwealth may ‘take’ water against its water entitlements by leaving flows instream. These flows

may then cause downstream access thresholds to be exceeded, potentially leading to the extraction of Commonwealth environmental water. A key focus of water shepherding is to ensure that third-party interests are neither increased nor diminished. This includes irrigators within a particular catchment and downstream.

New South Wales water shepherding

From 14 May 2012 to 2 July 2012 the New South Wales Office of Water released a report for public comment that presents an analysis of options for water shepherding in unregulated streams in New South Wales. A key principle guiding the development of the water shepherding approach is that third party impacts (including impacts on the rights of other water users) must be avoided, while protecting the passage of environmental water.

Queensland water shepherding

Work to progress the memorandum of understanding for environmental water shepherding in Queensland unregulated streams will accelerate in 2012–13, following on from the development of New South Wales arrangements (referred to above). Although water management approaches differ in Queensland, the project will benefit from and build upon the understanding developed in the New South Wales water shepherding project.

Management of Commonwealth environmental water

Decisions on the use of Commonwealth environmental water are made by the Commonwealth Environmental Water Holder, a statutory position established under the Water Act 2007.

Directions given to the Commonwealth Environmental Water Holder

No directions were given in 2011–12 to the Commonwealth Environmental Water Holder by either the minister or the secretary of the department.

Commonwealth environmental water decision-making framework

The use of Commonwealth environmental water is guided by A framework for determining Commonwealth environmental water use (see Resources). ‘Best use’ of Commonwealth environmental water is decided using a combination of science-based and collaborative approaches:

In the science-based approach, input is sought from jurisdictions, departmental staff and external experts, including the Commonwealth Environmental Water Scientific Advisory Panel (see Advisory groups).

In the collaborative approach, proposals are developed with the Commonwealth Environmental Water Office delivery partners, including state governments, catchment management authorities, water management authorities, regional and local land managers, and river operators, who store, manage and deliver water for all water users.

Throughout each year, the Commonwealth Environmental Water Holder decides on the use of Commonwealth environmental water across the Basin. This includes considering options for delivering water to environmental sites within the current year, carrying over water to future years or trading the water. The assessment criteria applied to all environmental watering options are:

ecological significance of the asset(s) expected ecological outcomes from the proposed watering action potential risks of the proposed watering action at the site and at connected locations long-term sustainability of the asset(s), including appropriate management arrangements cost-effectiveness and operational feasibility of undertaking the watering.

As part of the application of these criteria, it is important that the climatic and environmental conditions of the catchment are considered (see Appendix E).

Environmental water delivery documents

Complementing A framework for determining Commonwealth environmental water use, water use documents continued to be developed in 2011–12 for the major catchments of the Basin. These documents aim to provide water use strategies that support efficient water use under different scenarios of water availability and ecological conditions. Informed by proposals provided by delivery partners and others, the documents will be a key input to the development of water use options. The documents are updated as information is received and individual water use proposals are developed.

Active management of Commonwealth environmental water

Commonwealth environmental water is being actively managed so that environmental objectives are met with an efficient use of water. Active management includes using infrastructure to deliver water, working with river operators to better manage environmental flows (including suspending flows when required), and transferring water allocations between catchments to where water is needed most.

Effective management of the Commonwealth environmental water portfolio will continue to improve the capacity to achieve environmental objectives both across years and across catchments within the Basin. Portfolio management also involves making decisions on the appropriate balance between using water, carrying it over for use in future years (when it may be of more environmental benefit), trading it, transferring it and returning it for reallocation.

Annual portfolio management statements will be released on the Commonwealth Environmental Water Office website at the beginning of each water year. These statements will outline potential use, trade and carryover options for each catchment in the Murray–Darling Basin and will be updated during the year as portfolio management options are revised in response to actual catchment conditions.

Managing risks in using Commonwealth environmental water

Development and implementation of a risk management approach supports decision making across Commonwealth environmental watering activities. Managing the risks associated with Commonwealth watering activities helps to ensure:

minimum unintended impacts maximum environmental outcomes efficient and effective use of environmental water a high standard of stewardship of Commonwealth assets.

Before the use of any water, the Commonwealth Environmental Water Office undertakes appropriate risk identification, assessment and management to ensure that all risks are appropriately identified, assessed, treated and mitigated. The approach is in accordance with the Australian standard for risk management (AS/NZS ISO 31000) and takes into account information from a range of sources, including delivery partners, on-ground delivery officers and the local community. Risk assessments are updated regularly as new information arises or situations change.

As a result of the high rainfall and wet catchment conditions, the risk of adding to damage from flooding was a major consideration in making decisions on the use of Commonwealth environmental water in 2011–12 (see Commonwealth environmental water in 2011–12).

During 2011–12 the Commonwealth Environmental Water Office has continued to refine its internal guidelines for assessing and managing the risks associated with environmental watering. Additionally a comprehensive review of potential legal and strategic risks associated with the management of environmental water has been carried out. This review will lead to the development and implementation of a revised risk mitigation and treatment plan for the Commonwealth Environmental Water Office in 2012–13.

Transparency and accountability in the use of Commonwealth environmental water

The Commonwealth Environmental Water Office was established to improve accountability and stakeholder engagement in environmental water management (see Establishment of the Commonwealth Environmental Water Office). The office works with local communities, catchment managers, state governments and its advisory groups to ensure that water is used efficiently and effectively to meet local and Basin-wide needs (see Working with others). This includes numerous face-to-face meetings between staff from the Commonwealth Environmental Water Office and stakeholders in Basin catchments to discuss environmental water use.

As noted in the Australian Government’s response to the inquiry into the impact of the guide to the Murray–Darling Basin Plan in regional Australia (see Resources), the Commonwealth Environmental Water Office remains committed to releasing publications and engaging in targeted consultation on the approach to key strategic issues. During 2011–12 these issues included trade, water shepherding, carryover, and monitoring and evaluation. These issues are addressed in detail elsewhere in this report (see Priorities for 2011–12).

Commonwealth environmental water reporting

The Commonwealth Environmental Water Office produces a range of reports that are available to stakeholders and the general public.

Details of all Commonwealth environmental watering actions are made available on the Commonwealth Environmental Water Office website <www.environment.gov.au/ewater/index.html>.

An annual report is provided to parliament and published each financial year, outlining how Commonwealth environmental water has been used.

An outcomes report is published each financial year, summarising the ecological outcomes from Commonwealth environmental watering.

Results from all monitoring and evaluation projects commissioned by the Commonwealth Environmental Water Office are published on the office website.

Environmental Water Holdings Special Account 2011–12

The Environmental Water Holdings Special Account is established under Section111 of the Water Act 2007 for the payment of costs, expenses and other obligations incurred in managing Commonwealth environmental water holdings.

At the start of 2011–12 the Special Account balance was $23.5 million. Funding of $21 million was credited from the Sustainable Rural Water Use and Infrastructure Program to the account during the financial year, and $7.4million was expended on annual water entitlement fees, allocation trading and delivery costs. At 30 June 2012 the Special Account balance was $36 million (of which $13.8million has been committed for environmental watering actions and other projects). The key expenditure in 2011–12 are shown in Table 1.

Table 1: Environmental Water Holdings Special Account expenditure

Category of expense Total costs ($)

Fees and charges for holdings and allocations and for maintaining and providing for the replacement of rural water infrastructure1

7.422 million

Monitoring and evaluation 0.546 million

Development of environmental registers and other systems2 0.399 million

Total 8.367 millionNotes:1 Fees and charges include $5.790 million for annual water entitlement fees and $1.632million for allocation use fees. No pumping was required to deliver environmental water in 2011–12. 2 The Commonwealth received a contribution of $0.051 million from the Murray–Darling Basin Authority towards the expenditure of $0.399 million on the development of environmental registers and other systems.

Appendix A—Commonwealth Environmental Water Office holdings in the Murray–Darling Basin Table A1: Commonwealth Environmental Water Office holdings in the Murray–Darling Basin (at 30 June 2012)

State Catchment/ water system source

Security/ reliability

Registered entitlements volume (ML1)

Long-term average annual yield (ML)

South Australia

Murray High (Class 1) 43 39

High (Classes 3 and 9)

99870 89883

Victoria Murray High 226 603 215 272

Low 11 285 2708

Loddon High 2746 2608

Low 527 142

Campaspe High 6425 6104

Low 395 194

Campaspe (Coliban) High 30 27

Goulburn High 187 058 177 705

Low 10 759 3766

Broken High 47 45

Low 4 3

Ovens High 70 67

New South Wales

Murray High 2636 2504

General 97979 79363

Groundwater 99 99

Murray Irrigation Limited (MIL)

General A 136777 110789

Lower Darling General 492 399

Murrumbidgee High 1605 1525

General 161426 103313

Conveyance 5727 5441

Supplementary 20820 2915

Barwon–Darling Unregulated 14603 14603

Lachlan High 733 733

General 86199 36204

Macquarie and Cudgegong

General 98004 41162


Namoi (upper) General 105 81

Namoi (lower) General 6098 4695

Gwydir High 375 375

General 89525 32229

State Catchment/ water system source

Security/ reliability

Registered entitlements volume (ML1)

Long-term average annual yield (ML)


Border Rivers General B 269 108

Warrego Unregulated 8106 8106

Queensland Border Rivers Medium 10403 3433

Unsupplemented 1000 484

Border Rivers (Macintyre Brook)

Medium 207 182

Lower Balonne Unsupplemented 34804 22895

Moonie Unsupplemented 1415 1100

Nebine Unsupplemented 5920 1000

Warrego Unsupplemented 16050 8000

Total2 1 368 228 984 324

1 1 gigalitre equals 1000 megalitres. Some volumes may differ marginally from 30 June 2012 figures posted on the Commonwealth Environmental Water website due to accounting adjustments made after 30 June 2012.

2 The volume of water currently in the holdings is less than the volume secured under Water for the Future, which includes water entitlements secured under contract but not yet formally transferred to the Commonwealth.

Appendix B—Commonwealth environmental water delivered in the Murray–Darling Basin in 2011–12Table A2: Summary of the volume of Commonwealth environmental water delivered in the Murray–Darling Basin in 2011–12

Catchment Water delivered (GL)

Actions

Murray 343.4 Edward–Wakool/Colligen Creek—two actions, Jimaringle/Cockran, Murray River—fish refuge flows, lower Murray and lower lakes

Loddon 1.6 Instream flows

Campaspe 6.5 Instream flows

Goulburn 133.9 Instream flows

Broken River 0.05 Instream flows

Lower Broken Creek 10.4 Instream flows

Ovens 0.07 Instream flows

Murrumbidgee 83 North Redbank and Murrumbidgee channel

Lachlan 20.2 Muggabah Creek, Merrowie Creek (including Murphys Lake), Merrimajeel

Macquarie 40 Macquarie Marshes

Gwydir 1.2 Gwydir Wetlands

Queensland (lower Balonne)

3.1 Instream flows

Queensland (Nebine, Moonie, Severn)

2.5 Instream flows

Warrego 33.8 Instream flows

Total 680

Appendix C—Basin catchment summaries of Commonwealth environmental water use in 2011–12 Table A3: Commonwealth environmental watering actions for the Border Rivers catchment in 2011–12

Location of watering action

Type of action Objective of watering action Water delivered (megalitres)

Complex Site River flows

Inundation Timing C’wealth Partner Total

Wetland Floodplain

Severn River

Severn River

● Support natural flows that promote native fish movement, and maintain high-value waterholes and riparian vegetation within the Sundown National Park.

December 2011- February 2012

1000 1000

Table A4: Commonwealth environmental watering actions for the Condamine–Balonne catchment in 2011–12


Type of action Objective of watering action

Water delivered (megalitres)



Wetland Floodplain

Balonne Lower Balonne Wal

● Provide natural instream flows to support aquatic ecosystems and habitats.

December 2011–April 2012

307 307




2743 2743



March–April 2012

4 4

Nebine Creek

Nebine Creek


February 2012

62 62

Table A5: Commonwealth environmental watering actions for the Gwydir catchment in 2011–12






Wetland Floodplain

Gwydir Wetlands

Lower Gwydir and Gingham watercourses

● ● ● Support the initial inundation of core wetland vegetation in the Gwydir Wetlands to promote the recovery of wetland vegetation and maintain habitat for threatened and migratory species.

October 2011

1206 1206

Table A6: Commonwealth environmental watering actions for the Lachlan catchment in 2011–12






Wetland Floodplain

Booligal Wetlands

Merrimajeel Creek

● ● Inundate Merrimajeel Creek, Murrumbidgil Swamp and Lake Merrimajeel; improve the health of wetland vegetation, including river red gums; and provide habitat for water-dependent fauna.

June–September 2011

5006 1835 6841

Booligal Wetlands

Muggabah Creek

● ● Provide system connectivity within Muggabah Creek and trial a watering of Lower Gum Swamp.

August–October 2011

3585 1314 4899

Lower Lachlan

Merrowie Creek (Tarwong Lakes)

● ● Provide wetland habitat for nesting birds, support breeding of Sloane’s froglet near Toms Lake, and prolong the inundation of Lake Tarwong to improve the health of wetland vegetation.

July–October 2011

11 568 4242 15 810

Table A7: Commonwealth environmental watering actions for the Macquarie–Castlereagh catchment in 2011–12






Wetland Floodplain

Macquarie Macquarie Marshes

● Inundate the majority of core semi-permanent aquatic vegetation communities throughout the Macquarie Marshes.

September 2011–January 2012

35 000 113 440 148 440

Macquarie Macquarie Marshes

● Support the action above (35 000 megalitres) to ensure success of bird breeding colonies.

December 2011– January 2012

5000 5000

Table A8: Commonwealth environmental watering actions for the Moonie catchment in 2011–12


Type of action Objective of watering action Water delivered (megalitres)



Wetland Floodplain

Moonie River

Moonie River

● Support the first significant post-winter flow event in the system and associated migration and spawning cues for native fish.

December 2011

1415 1415

Table A9: Commonwealth environmental watering actions for the Warrego catchment in 2011–12






Wetland Floodplain

Warrego Upper Warrego

● Support natural flow events to reconnect waterholes and provide a strong cue for the migration and spawning of native fish.


6050 6050

Warrego Lower Warrego

● Support natural flow events, including the first inflow connecting the main river to waterbird breeding and feeding habitat in the Cuttaburra Basin.

December 2011–February 2012

10 000 10 000

Warrego Lower Warrego (Toorale)

● Support instream flows and connectivity along the Warrego and Darling rivers.

January–February 2012

8106 8106

Warrego Lower Warrego Western Floodplain (Toorale)

● Provide waterbird habitat and inundate key floodplain vegetation on the Western Floodplain of Toorale.

January–February 2012

9720 9720

Table A10: Commonwealth environmental watering actions for the Broken, Campaspe, Goulburn, Loddon and Ovens catchments in 2011–12






Wetland Floodplain

Ovens Ovens ● Supplement May 2012 70 70






Wetland Floodplain

River instream flows.

Goulburn–Broken

Broken River

● Supplement natural fresh flows in summer–autumn or baseflows in autumn–winter.

April 2012 51 51

Goulburn–Broken

Broken Creek

● Provide elevated baseflows in lower Broken Creek that will support native fish habitat.

December 2011–May 2012 (action suspended late February–early May 2012)

10 366 10 366

Goulburn–Broken

Goulburn River

● Complement natural flows and provide refuge to aquatic animals in the Murray River that are at risk from hypoxic blackwater entering the system from the Murrumbidgee River.

November 2011–May 2012

96 900 96 900

Goulburn–Broken

Goulburn River

● As per action above (96 900 megalitres).

May–June 2012

37 039 37 039

Campaspe Campaspe River

● Provide connectivity to allow fish movement, promoting river red gum recruitment and support aquatic habitat for macroinvertebrates.

June 2011–June 2012

6532 6532

Loddon Loddon River

● Support vegetation health and maintain water quality.

June–October 2011

1564 1564

Table A11: Commonwealth environmental watering actions for the Murray catchment in 2011–12






Wetland Floodplain

Edward –Wakool

Colligen Creek

● Provide a spring pulse flow for native fish in Colligen Creek.

November–December 2011

5500 1717 7217






Wetland Floodplain

Edward –Wakool

Wakool River and Colligen Creek

● Provide a late summer pulse for riverine and riparian vegetation and small-bodied fish.

February –March 2012

7500 6881 14 381

Edward –Wakool

Edward –Wakool system with releases from the Edward and Wakool Escapes

● Provide refuge for fish from hypoxic blackwater.

April–May 2012

39 445 291 39 736

Edward –Wakool

Jimaringle and Cockran creeks

● Improve water quality and continue to improve the health of the vegetation in the system—in particular, aquatic vegetation and fringing river red gum and black box communities.

March–April 2012

3000 3227 6227

Murray River

Mid-Murray

● Provide and maintain oxygenated refuge habitats for aquatic animals along the main stem of the Murray River.

April–May 2012

92 093 92 093

Lower Lakes, Coorong and Murray Mouth

Lower Lakes

● ● Support the management and improvement of aquatic habitat in the Murray River channel, Lower Lakes and Coorong, with increased flows provided through to the Murray Mouth.

February–June 2012

69 300 69 300

Lower Lakes, Coorong and Murray Mouth

Lower Lakes

● ● As per action above (60 500 megalitres).

January 2012 (action suspended February 2012)

126 600 126 600

Table A12: Commonwealth environmental watering actions for the Murrumbidgee catchment in 2011–12

Location of watering action Type of action Objective of watering action




Wetland Floodplain

Lower Murrumbidgee

Lowbidgee–North Redbank

● Support wetland habitat and water-dependent species.

November 2011–February 2012

17 800 2 400 20 200

Lower Murrumbidgee

Lowbidgee–North Redbank Wetlands and Murrumbidgee channel

● ● Increase connectivity between the North Redbank Wetland and the Murrumbidgee River channel and promote spawning opportunities for small-bodied fish.

February–June 2012 (action suspended late February–mid-May 2012)

65 200 1 700 66 900

Appendix D—Commonwealth environmental water carryover into 2012–13 Table A13: Summary of Commonwealth environmental water carryover into 2012–13

Part of Basin Water source Carryover (gigalitres)

Southern connected Basin Victorian Murray 163

Goulburn 11

Campaspe 0

New South Wales Murray 33

Murrumbidgee 42

Northern Basin Lachlan 116

Macquarie and Cudgegong 94

Gwydir 134

Namoi 12

Border Rivers 9

Total 615

Appendix E—Ecological and management objectives for environmental water use under different water availability scenariosTable A14: Ecological and management objectives for environmental water use under different water availability scenarios

Extreme dry Dry Moderate Wet1 Very wet1

Ecological watering objectives

Avoid damage to key environmental assets.

Ensure ecological capacity for recovery.

Maintain ecological health and resilience.

Improve the health and resilience of aquatic ecosystems.

Build future capacity to support ecological health and resilience.

Management objectives

Avoid critical loss of threatened species, communities and ecosystems. Maintain key refuges. Avoid irretrievable damage or catastrophic events.

Support the survival and growth of threatened species and communities, including limited small-scale recruitment. Maintain diverse habitats. Maintain low-flow river and floodplain functional processes in sites and reaches of priority assets.

Enable growth, reproduction and small-scale recruitment for a diverse range of flora and fauna. Promote low-lying floodplain–river connectivity. Support medium-flow river and floodplain functional processes.

Enable growth, reproduction and large-scale recruitment for a diverse range of flora and fauna. Promote higher floodplain–river connectivity. Support high-flow river and floodplain functional processes.

Support growth, reproduction and large-scale recruitment for a diverse range of flora and fauna. Sustain higher floodplain–river connectivity. Support high-flow river and floodplain functional processes.

Management actions

Provide water for refugia and sites that support threatened species and communities. Undertake emergency watering at specific sites of priority assets. Use carryover volumes to maintain critical needs. Allow drying to occur, where appropriate.

Allow drying to occur, consistent with natural wetting and drying cycles. Provide water refugia and sites supporting threatened species and communities. Provide low flow and freshes in sites and reaches of priority assets. Use carryover volumes to maintain follow-up watering.

Prolong flood or high-flow duration at key sites and reaches of priority assets. Contribute to the full range of in-channel flows. Use carryover to provide optimal seasonal flow patterns in subsequent years.

Increase flood or high-flow duration and extent across priority assets, where feasible. Contribute to the full range of flows, including over bank, where feasible. Use carryover to provide optimal seasonal flow patterns in subsequent years.

Maintain flood or high-flow duration and extent across priority assets, where feasible. Contribute to the full range of flows, including over bank, where feasible. Use carryover to provide reserves for future years.

1 Objectives and actions in wet and very wet scenarios are not substantially different from each other, since the appropriate use depends on opportunities to build on and supplement natural flows, subject to operational feasibility.

Outcome 5: Environment protection and heritage conservation

‘Protecting and conserving Australia’s heritage – our natural, Indigenous and historic treasures.’

Increased protection, awareness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of national and World Heritage significance.


The department’s Heritage and Wildlife Division is responsible for:

Identifying, protecting, conserving and celebrating Australia’s heritage by developing and implementing strategies and programs, and administering legislation.

Enhancing Australia’s capacity to ensure the conservation and sustainable management of biodiversity and wildlife, both domestically and internationally.

Supporting the Threatened Species Scientific Committee in providing advice to the minister on listing of species, ecological communities and key threatening processes under the EPBC Act, and developing recovery plans and conservation advices for listed species and ecological communities.

Heritage and Wildlife Division

The department’s Environment Assessment and Compliance Division is responsible for:

Ensuring the effective and efficient administration of relevant provisions of the EPBC Act to ensure the protection of the environment, especially matters of national environmental significance, through assessment of environmental impacts of activities, strategic assessment, and compliance, investigation and enforcement activities.

Forming partnerships with states and territories, stakeholders, and the Australian community, to promote cooperative environmental management and protection.

Enhancing Australia’s capacity to ensure the conservation and sustainable management of biodiversity and wildlife.

Protecting the marine environment through management of sea dumping in accordance with the London Convention and London Protocol through the Environment Protection (Sea Dumping) Act 1981.

Providing information and tools to raise awareness of, and compliance with, environment protection law.

Environment Assessment and Compliance Division

The Supervising Scientist is a statutory office under the Environment Protection (Alligator Rivers Region) Act 1978, and is assisted by the department’s Supervising Scientist Division in carrying out responsibilities for supervising uranium mining in the Alligator Rivers Region (which includes Kakadu National Park). The Supervising Scientist works closely with the Department of Resources, Energy and Tourism and the Northern Territory Department of Resources.

Supervising Scientist Division

Objectives Identify and protect Australia’s natural, Indigenous and historic heritage places. Provide funding and advice to support heritage protection, conservation and interpretation. Assist Papua New Guinea to protect the historic values of the Kokoda Track. Provide for the protection of the environment, especially matters of national environmental significance.

Administer environmental regulation under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and the Environment Protection (Sea Dumping) Act 1981 (Sea Dumping Act).

Protect the Alligator Rivers Region from the impact of uranium mining under the Environment Protection (Alligators Rivers Region) Act 1978.

Regulate international trade in Australian native species, species listing under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the import of live animals.

Promote a cooperative approach to protecting and managing the environment involving governments, the community, landholders and Indigenous peoples.

Make it easier for governments, business and communities to value biodiversity and ecosystems and comply with environmental legislation.

Improve sustainability in priority high-growth areas.

Highlights On 31 August 2011 the Minister for Sustainability, Environment, Water, Population and Communities, the

Hon. Tony Burke MP, included the West Kimberley in the National Heritage List. Covering around 19 million hectares of land and sea, the Kimberley national heritage listing recognises, celebrates and protects the outstanding Indigenous, natural and historic heritage values of this iconic and extraordinary region.

International interest in Australia’s environment was highlighted by a joint monitoring mission by the World Heritage Centre and the International Union for the Conservation of Nature to the Great Barrier Reef World Heritage Area in March 2012. The department coordinated this mission, which primarily assessed the state of conservation of this World Heritage Area. The findings of the mission were considered by the World Heritage Committee at its annual meeting in June–July 2012.

Key achievements

Protection of matters of national environmental significance

In 2011–12 the department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act. Seventy-five proposals were approved subject to conditions and one proposal was determined to be clearly unacceptable. Key projects included:

o the Wheatstone project to be undertaken by Chevron Australia Pty Ltd, which involves the construction and operation of a liquefied natural gas and domestic gas plant, including onshore and offshore facilities

o the Olympic Dam copper, uranium, gold and silver mine, processing plant and associated infrastructure

o various iron ore proposals to be developed in the Pilbara Bioregion, Western Australia. The Commonwealth entered into four new strategic assessments in 2011–12, including a comprehensive

strategic assessment for developments and activities that may impact on the Great Barrier Reef World Heritage Area.

Based on assessments completed by the Threatened Species Scientific Committee, the minister listed six new species, including the listing of the koala as vulnerable in Queensland, New South Wales and the Australian Capital Territory, and six ecological communities as threatened under the EPBC Act. Guidelines and landholder factsheets were also published for seven ecological communities.

The department, in partnership with the relevant state and territory government environment agencies, made substantial investment in the recovery of threatened species and ecological communities through developing and implementing recovery plans. The minister or his delegate approved the adoption of 27 national recovery plans under the EPBC Act, covering 36 species and nine ecological communities.

The department worked closely with CSIRO to develop a method for carrying out a national flying fox monitoring program, due to commence in 2012–13.

Heritage Conservation.

A report assessing the outstanding universal values of the Dampier Archipelago in Western Australia was prepared for the Australian Heritage Council. With more than one million images in an area of 36857 hectares, this is one of the richest, most diverse and exciting collections of Aboriginal rock engravings in Australia.

$20 million was provided for the protection and promotion of the World Heritage-listed Royal Exhibition Building in Melbourne.

$7.9 million was provided to 235 projects to protect, conserve and enhance the values of significant historic heritage under the Your Community Heritage program. Your Community Heritage is a new and practical approach to supporting communities to celebrate their local heritage, and share their local stories and traditions that together tell our national story.

A strategic heritage assessment of post offices across Australia was conducted by Australia Post, resulting in 43 post offices being included in the Commonwealth Heritage List during 2011–12.

Under the Kokoda Initiative, the department supported the long-term objective of sustainable development of the Owen Stanley Ranges, Brown River Catchment and Kokoda Track Region, and the protection of its special natural, cultural and historic values through $4.391 million from AusAid.

The department provided assistance to Palau with the preparation of a World Heritage nomination dossier for the Rock Islands Southern Lagoon, which was inscribed on the World Heritage List at the 36th Session of the World Heritage Committee in St Petersburg, 24 June–6 July 2012. The Australian Government also funded the attendance of the Palau delegate to the meeting.

Protection of the Alligators River Region

During 2011–12 the Supervising Scientist Division continued to conduct research, monitoring, supervision and audit activities. The continuous monitoring program, implemented and refined over the past six years, continues to be particularly well received by stakeholders. The mining company Energy Resources of Australia Ltd now has a similar program within Magela Creek that has been in operation for the past two years. Both programs, combined with the Supervising Scientist Division’s in situ biological monitoring program, continue to provide stakeholders with a high level of information about potential mine site impacts on the surrounding aquatic environment, and can be considered leading practice for real-time monitoring and compliance.

All findings to date indicate that the environment of the Alligator Rivers Region remains protected from the impact of uranium mining. During the 2011–12 wet season, the maximum total uranium concentration measured downstream from the Ranger mine was approximately 7 per cent of the local ecotoxicologically-derived limit, and approximately 2 per cent of the guideline for drinking water. Detailed performance results are provided in the Supervising Scientist’s annual report on the operation of the Environment Protection (Alligator Rivers Region) Act 1978, available at <www.environment.gov.au/ssd/publications/index.html#annual>.

Strategies

Program 5.1: Environment protection and heritage conservation

International heritage

As Australia is a signatory to the Convention Concerning the Protection of the World Cultural and Natural Heritage (the World Heritage Convention), the department is responsible for developing and advocating for Australian Government policies and projects aimed at improving the operations and integrity of the World Heritage Convention. The department represents Australia at the World Heritage Committee and pursues key initiatives designed to increase the integrity of the World Heritage Convention and, where practical, contributes to improving World Heritage Committee policies and practices. In 2011–12 the department also provided assistance to Pacific Island countries for World Heritage activities through AusAID’s Pacific Public Sector Linkages Program (PPSLP), and the Australian Funds-In-Trust (AFIT).

The AFIT is an Australian Government contribution to a trust fund held by UNESCO and supports a suite of World Heritage activities in the Asia and Pacific region. Examples of Australia’s assistance under the AFIT include: supporting four Pacific Islands World Heritage Workshops; supporting Pacific Islanders to attend heritage training and World Heritage Committee meetings; and providing support to implement projects identified under the Pacific World Heritage Action Plan. The Pacific Heritage Hub is a priority regional action outlined in the Pacific World Heritage Action Plan 2015, adopted by the World Heritage Committee in 2009.

The Pacific Heritage Hub aims to strengthen heritage in Pacific Island countries, increase communication networks, coordinate training opportunities and bring together donors and projects in the region.

Under the PPSLP, training activities have been delivered to build capacity towards implementing World Heritage Convention obligations for Pacific Island countries. Opportunities have been sought to provide training in heritage tourism and community governance, including facilitating the participation of Pacific Island countries at the Pacific Asia Indigenous Tourism Conference in Darwin during March 2012. Partnerships have been developed with non-government organisations and government counterparts to deliver activities.

Kokoda Initiative

In 2011–12 the department continued work on the Kokoda Initiative under the Second Joint Understanding on the Owen Stanley Ranges, Brown River Catchment and Kokoda Track Region (2010–15). This bilateral agreement expresses the commitment of the Australian and Papua New Guinea governments to work together to:

maintain a safe and well-managed Kokoda Track enhance the quality of life for landowners and communities work towards the conservation of the catchment protection area build the tourism potential of the region work with all stakeholders to ensure the activities of the Kokoda Initiative are sustainable.

Under the Kokoda Initiative, the department provides funding to the Kokoda Track Authority (KTA) to strengthen operational capacity, including supporting an adviser, finance officer, safety project manager, livelihoods officer and a part-time communications officer to work within the KTA. The department also provided the KTA with funding to deliver a livelihoods program focused on income generation for track communities, capitalising on opportunities presented by the trekking industry, and a grant to address track safety risks, including the maintenance of infrastructure.

To support improved land-use planning in the region, the department continued to support Papua New Guinea’s Department of Environment and Conservation (DEC) to develop mapping systems and databases. Support to DEC includes the deployment of an adviser within the agency and short-term placements of DEC staff in Australia to build capacity.

The department continues to work with the Kokoda Development Program to improve basic service delivery in health and education for track communities, with funding directly provided to this program by AusAID for 2011–12.

World Heritage management

In 2011–12 the department continued to support the protection, conservation and presentation of Australia’s heritage of outstanding universal value in consultation and cooperation with the relevant states.

The Australian Government provided $20 million to the Victorian Government for the protection and promotion of the World Heritage listed Royal Exhibition Building and Carlton Gardens. This funding will be used for a range of important works to help conserve the values of this iconic site, including conservation of the dome and restoration of the exterior facades. The department will monitor the four-year project through agreed progress reporting arrangements.

The department provides secretariat services for the Australian Convict Sites Steering Committee. In 2011–12 the committee met via teleconference twice to discuss matters of relevance to the 11 sites that together form the Australian Convict Sites World Heritage Property. The department also hosted an intern from the Australian National University’s Museums and Collections Program who undertook a project for the committee. The project explored options for a collaborative online presence for the Australian Convict Sites and will form the basis for future work in this area.

Tourism opportunities for the Australian Convict Sites were also investigated in two reports commissioned by the department and received in 2011–12. The Kingston and Arthurs Vale Historic Area (KAVHA, Norfolk Island) Tourism Master Plan provides a broad context for a range of heritage tourism issues and makes 21recommendations for implementation. The master plan was provided to the KAVHA Management Board in May 2012. In addition, the Australian Convict Sites Tourism Linkages Platform identified potential competitive visitor experiences that could be offered as a result of tourism trends and World Heritage listing of the overall Australian Convict Sites property. The report was provided to the Australian Convict Sites Steering Committee in June 2012.

The department, with the New South Wales Government and the Parramatta City Council, explored the implications of World and National Heritage listing in urban areas. In May 2012 there was agreement by officials at all levels of

government to commission an assessment of the significant views and settings associated with Parramatta’s heritage sites, including Old Government House and Domain (one of the Australian Convict Sites), with specific reference to future urban development in the city centre.

The Australian Government provided $17 million in 2011–12 from the Caring for our Country initiative to assist the states to manage World Heritage properties to ensure their protection and promotion is consistent with undertakings under the World Heritage Convention. Activities funded include agreed on-ground priority projects and strategic management support projects including community consultation and coordination. Examples include a sum of $4.5 million provided to New South Wales for the eradication of rodents from the World Heritage listed Lord Howe Island Group. This funding, matched by the NSW Environmental Trust, will benefit the remarkable biodiversity of the island and residents. The department will play a role in the management of the project through agreed governance arrangements. Other projects that have been funded include work with neighbouring landholders to improve landscape connectivity in the Wet Tropics World Heritage Area, and research at Shark Bay into the effects of rising water levels on the Faure Sill and the stromatolite community.

The department provided advice in relation to the review of the Strategic Overview for Management of the Gondwana Rainforests of Australia World Heritage Area, in consultation with the NSW Office of Environment and Heritage and the Queensland Department of Environment and Resource Management.

National and Commonwealth heritage listings

The minister added the West Kimberley (Western Australia), HMS Sirius Shipwreck (Norfolk Island) and the Jordan River Levee Site (Tasmania) to the National Heritage List, bringing the total number of places on the list to 97.

In 2011–12, 43 post offices across Australia, as well as the Edward Braddon Commonwealth Law Courts in Hobart, the HMS Sirius Shipwreck, and the ABC Regional Radio Studio, Wagin, Western Australia were added to the Commonwealth Heritage List.

Ahead of the centenary of Canberra in early 2013, the Australian Heritage Council is assessing public nominations of Canberra to the National Heritage List. The focus of the assessment is on the national capital as an outcome of federation, the seat of Australian democracy and a showcase of twentieth century town planning concepts. Formal statutory consultations and a broader consultation process commenced in late 2011–12.

National and Commonwealth heritage management

The department liaised with a number of Commonwealth agencies throughout the year on their heritage management obligations under the EPBC Act. Examples include pre-referral advice provided to the Australian National University and the Office of the Official Secretary to the Governor-General in relation to works proposals, the Department of Finance and Deregulation for disposals, and the National Capital Authority on an amendment to the National Capital Plan.

In conjunction with the Australian Heritage Council meeting of 22 March 2012, the department organised a workshop to analyse and evaluate the methodologies for assessing aesthetic heritage values of natural places. The workshop was attended by the members of the council, external experts and departmental staff involved in assessments to the National Heritage List. A final report on the outcomes of the workshop made a number of recommendations for future directions to improve the current methodology.

Indigenous heritage

The department works with other government agencies and the community to protect the cultural heritage of Aboriginal and Torres Strait Islander peoples. The work includes providing advice on proposals referred under the EPBC Act; supporting projects to identify, conserve and promote Indigenous heritage; and providing emergency protection to areas and assisting the minister to respond to applications under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 (ATSIHP Act).

Under the ATSIHP Act the minister can protect areas and objects of traditional significance to Aboriginal and Torres Strait Islander peoples from threats of injury or desecration. This ‘last resort’ protection is available only when there is no effective protection under state or territory laws.

In 2011–12 the department supported the minister’s response to 50 separate applications to protect 22 areas and five collections of objects. Of these, 21 were new applications made during the year, similar to last year’s 20 new applications and below the long-term average of approximately 24 new applications per year.

Ten of the applications were not legally valid applications under the Act and another ten were withdrawn by the applicants. Six applications were resolved when the minister declined to make declarations, and 23 applications were under active consideration at the end of 2011–12. An additional application was resolved in 2009 under an agreement that continues to be monitored by the department.

During 2011–12 the department continued to work on possible reforms to the ATSIHP Act. The reforms were proposed in 2009, at which time it was noted that they might be incorporated in the EPBC Act. Subsequently the independent review of that Act recommended that the reforms to the ATSIHP Act should be included in an amended version of the EPBC Act. The Australian Government responded in August 2011, agreeing to consider this option, and electing to consult the Indigenous Advisory Committee as to the effectiveness of consolidating the two Acts. This work commenced in September 2011 and is ongoing.

Committees

The Australian Heritage Council

The Australian Heritage Council met six times in 2011–12, two of which were teleconferences. Council member Sharon Sullivan’s term expired during this year and Helen Lardner was appointed as an historic heritage expert.

The council has established closer ties with the Indigenous Advisory Committee, with several members from each body attending parts of the other’s meetings and contributions being made on a number of Indigenous heritage matters. This is consistent with the recommendation of the Hawke Review of the EPBC Act for increased communication between these expert advisory bodies to the minister.

The council recognised the need to improve approaches to Indigenous heritage assessment, protection and engagement and has proposed to hold a workshop on the topic.

Closer relations with the Threatened Species Scientific Committee have also been initiated, with a council member attending a committee meeting. It is expected that these ties will be strengthened in the next financial year. The Council Chair, Professor Carmen Lawrence, attended the Heritage Chairs and Officials meeting in Perth in February 2012.

The council assisted in the development of the Australian Heritage Strategy by holding a workshop with key heritage stakeholders—the outcomes contributing on a range of important issues regarding the conservation, presentation and management of natural, Indigenous and historic heritage.

The council also identified an increasing priority to improve management outcomes for listed places and for the development of a monitoring framework which would enable the council to gauge the effectiveness of management regimes and identify changes in heritage values and condition.

Heritage Chairs and Officials of Australia and New Zealand

The Heritage Chairs and Officials of Australia and New Zealand (HCOANZ) is a body comprising the chairs and chief executive officers of Australian and New Zealand statutory heritage agencies. The HCOANZ works to address matters of national importance. In 2011–12, the HCOANZ finalised the HCOANZ report on heritage sustainability–domestic building project, as well as national guidelines for heritage ruins.

The Australian World Heritage Advisory Committee

The Australian World Heritage Advisory Committee advises federal and state ministers on national and cross-cutting issues that affect Australia’s World Heritage properties. It is a forum for Australia’s World Heritage property managers to share information on place management and protection.

Iconic Sites Taskforce

The Iconic Sites Taskforce was established for a two-year term to advise the minister on matters relating to the protection and identification of iconic national assets. The taskforce met for the first time in June 2012 to identify opportunities and priorities for Australia’s iconic sites for the minister’s consideration in 2012–13.

Australian Heritage Strategy

The Australian Government is developing a national strategy for the recognition, protection, commemoration and celebration of heritage over the next decade to highlight the importance of heritage to all Australians and provide a common direction for heritage across Australia over the next decade. This high-level strategic framework will bring together the depth and diversity of Australian heritage and cover the three domains of heritage: natural, Indigenous and historic.

The strategy will also respond to key heritage findings of the 2011 state of the environment report, which identified that while our diverse natural and cultural heritage generally remains in good condition, it is being threatened by natural and human processes that do not reflect the true value of heritage to the Australian community.

A public consultation paper for the strategy was released in April 2012 outlining some of the current challenges and opportunities in the heritage sector. The period for public comment closed on 15 June 2012. The consultation paper and commissioned essays remain available for the information of stakeholders and individuals. Ninety-three submissions were received from all levels of government, professional organisations, community groups and individuals. These are published on the Australian Heritage Strategy website <www.environment.gov.au/heritage/strategy/index.html>.

Heritage grants programs

The department administers a range of grants to provide funding and advice to support heritage protection, conservation and interpretation.

Your Community Heritage program

The May 2011 Budget announced $4 million per year supplementation in 2011–12 and 2012–13 to build on the existing ongoing $4.42 million National Historic Sites program. The two-year Your Community Heritage program is aimed at helping the community tell its heritage stories, enhancing community engagement in heritage, bringing heritage online, protecting national heritage assets, and preservation and understanding of skills at risk of being lost.

In 2011–12, $7.9 million was provided to 235 projects to protect, conserve and enhance the values of significant historic heritage; to enhance the resilience of heritage places to withstand natural disasters such as floods, bushfires, storms and earthquakes; and to contribute to the management and the long-term sustainability of significant historic heritage sites. Around $0.5 million was provided to fund the development of the Community Heritage portal.

The program comprises the following subprograms:

Protecting National Historic Sites Recovering from Natural Disasters Commemorating Eminent Australians Sharing Community Heritage Stories Celebrating Community Heritage Bringing Heritage Online.

Indigenous Heritage Program

The department administers the Australian Government’s Indigenous Heritage Program, an ongoing annual competitive grants program that provides $3.645 million annually to identify, conserve and promote the Indigenous heritage values of places important to Aboriginal and Torres Strait Islander peoples. The program is delivered in cooperation with the Department of Families, Housing, Community Services and Indigenous Affairs’ Indigenous Coordination Centres, as part of the whole-of-government delivery of services to Indigenous Australians.

In 2011–12 the Indigenous Heritage Program provided funding for 45 projects across Australia: three in New South Wales; 10 from the Northern Territory; 13 from Queensland; four each from South Australia and Victoria; and 11 from Western Australia. These projects not only conserve and promote Indigenous heritage but also contribute to Closing the Gap on Indigenous disadvantage.

Recipients include shire councils, land councils, Elders groups, National Trust groups and educational institutions.

Australia’s maritime heritage

The department administers the Historic Shipwrecks Act 1976 through a cooperative arrangement with the states, the Northern Territory and Norfolk Island under the Historic Shipwrecks Program. Under the Act the minister has delegated functions to officers within these states and territories. The department’s role is to coordinate administration nationally and in offshore waters, and to provide annual funding of $0.44 million to the relevant state and territory agencies. The funding is provided through a three-year service-level agreement with forward projected funding until 2014–15.

This cost-effective arrangement supports state and territory agencies that are best placed to enforce the Historic Shipwrecks Act 1976 in both Commonwealth and coastal waters while promoting a nationally consistent approach to maritime heritage conservation. Among other things the arrangement enables the Australian Government to maintain accurate and up-to-date records of Australia’s historic shipwrecks and their associated relics in the Australian National Shipwreck Database. During 2011–12, 14 shipwrecks off Tasmania, Western Australia and the Northern Territory were located or discovered within the jurisdiction of the Act.

Over the last two years the Australian National Shipwreck Database has been modernised to meet current statutory requirements and future needs. This work was completed in 2011–12. The database now offers online permit applications and a secure web portal for the minister’s delegates to carry out day-to-day administrative functions.

The department also provides funding to the Australasian Institute for Maritime Archaeology for activities that support the aims of the Historic Shipwrecks Act 1976 by promoting the preservation of underwater cultural heritage, and the application of internationally accepted ethical standards in maritime archaeology. Two grants were provided to the institute in 2011–12: a grant of $15,000 was given to publish the institute’s annual bulletin and to host its annual conference (held in Brisbane in September 2011); and a further $12,000 grant was provided to assist Pacific Islanders to attend the inaugural Asia-Pacific Regional Conference on Underwater Cultural Heritage, held 8–12 November 2011.

The department appoints and trains inspectors under the Historic Shipwrecks Act 1976 and investigates suspected breaches of the Act. In 2011–12 training was undertaken in Western Australia and the Northern Territory. Three serious breaches were investigated, resulting in two successful prosecutions. Court proceedings are pending in the third case. Following last year’s successful prosecution for possession of 1433 undeclared historic shipwreck relics, the department removed a further 300 relics from that person in January 2012. The relics were handed to the Western Australian Museum.

The department supports ministerial declarations under the Historic Shipwrecks Act 1976 including by arranging commemorative events where appropriate. Declarations were made on two occasions in 2011–12 (see Case study 2). The department also helped to coordinate the involvement of the United States Embassy in a ceremony to commemorate the 70th anniversary of the bombing of Darwin. United States Ambassador Jeffrey Bleich presented a historic shipwreck relic to the new Defence of Darwin Museum. The relic had been taken illegally from the SS Florence D (1942) and recovered by the department following an investigation in 2011.

The department also coordinates the development of national policies and procedures relating to the conservation of shipwrecks and other underwater cultural heritage. In September 2011 the department conducted a national workshop for government heritage officers and heritage consultants. This was the first step in the formulation of national

underwater cultural heritage planning guidelines for use by government heritage agencies and private consultants. The department continued to participate in a national project that aims to develop methods for the rapid excavation of shipwrecks that are under threat of destruction. During April–May 2012 an officer from the department participated in the first excavations of the Clarence shipwreck in Port Phillip, Victoria. The project is funded in part through a $0.5 million Australian Research Council linkage grant.

The department is undertaking an ongoing review of the Historic Shipwrecks Act 1976. One aspect of the review is whether Australia should ratify the United Nations Educational, Scientific and Cultural Organization (UNESCO) 2001 Convention on the Protection of Underwater Cultural Heritage. Ratification of the convention would require the scope of the Historic Shipwrecks Act 1976 to be expanded to include protection for all underwater cultural heritage. During the year the department consulted with other Commonwealth government agencies about the possibility of ratification. The department also received funding from the Netherlands to attend an expert round-table in The Hague to discuss possible ratification of the convention by the Netherlands.

Australia has a treaty with the Netherlands concerning old Dutch shipwrecks (the Agreement between the Netherlands and Australia), which is a schedule to the Historic Shipwrecks Act 1976. Under this treaty the department supports collaborative work with the Embassy of the Kingdom of the Netherlands. Both Dr John Bach OAM and Emeritus Professor Geoffrey Bolton, Australia’s members on the Australian and Netherlands Committee for Old Dutch Shipwrecks, retired after 39 years of participation. Replacements are expected to be appointed during 2012–13.

Program 5.2: Environmental regulation

Environment Protection and Biodiversity Conservation Act 1999 and the Environment Protection (Sea Dumping) Act 1981

The department uses regulation and compliance activities, cooperative partnerships with state and territory governments, and provision of information to improve awareness of the EPBC Act to protect and conserve the environment. Further detail is provided in the report on the operation of the EPBC Act.

Species and ecological community listings and information

The minister decides whether to list a species or ecological community as threatened under the EPBC Act upon consideration of advice from the Threatened Species Scientific Committee (TSSC) on the eligibility of those items for listing. In 2011–12, based on assessments completed by the TSSC, six species and six ecological communities were listed, and seven species were transferred from one category of threat to another. At 30 June 2012 a further 120 species and 16 ecological communities were being assessed for possible listing. More detail on the listings is provided in the report on the operation of the EPBC Act.

To achieve consistency between Australian Government and state and territory threatened species lists, and to promote the exchange of information, the Australian Government has both formal and informal partnerships with all states and territories. These partnerships allow for targeted expenditure of limited conservation resources and facilitate the best possible conservation outcomes for threatened species. Under these partnerships, state or territory government agencies usually assess species endemic to their jurisdiction, before providing information to the Australian Government for assessment under the EPBC Act.

During 2011–12 the department progressed work to identify ecological communities that have the highest priority to be assessed for potential listing as matters of national environmental significance under the EPBC Act.

Part of the prioritisation process focuses on endemic ecological communities listed by states and territories in the ‘endangered’ and ‘critically endangered’ categories that are likely to benefit most from additional protection under the EPBC Act. In 2011–12 assessments were completed on two state-endemic ecological communities (one in Western Australia and one in Queensland) and work progressed on two others. All new listing advice for ecological communities at the national level contain clear links to state and territory-listed ecological communities and vegetation/ecosystem classification systems.

In addition, a strategic national ecological communities workshop was held in March 2012, with experts from across Australia, to refine prioritisation principles for national listing and identify possible gaps on the national list.

Recovery plans

The EPBC Act provides for the making or adopting of recovery plans and conservation advice when a species or ecological community is listed. Recovery plans set out the research and management actions needed to stop the decline and support the recovery of listed threatened species or threatened ecological communities.

The department, with the relevant state and territory government environment agencies, made substantial investment in the recovery of threatened species and ecological communities through developing and implementing recovery plans.

While the department has continued to adopt recovery plans developed by state and territory governments, it also progressed the development of several new plans that are being facilitated by the department and that are to be made directly instead of adopted under the EPBC Act. Collaboration with state and territory governments and other stakeholders remains an essential element of recovery plan development under this approach.

While the department aimed to complete 60 recovery plans during 2011–12, 27 came into force. Many other recovery plans were close to completion, with stakeholder comment and scientific advice needing to be addressed in finalising them.

Protecting our natural assets

The EPBC Act provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places, defined in the EPBC Act as matters of national environmental significance. It also regulates the potential impacts of activities on Commonwealth land, the impacts of actions carried out by Commonwealth agencies and the international movement of wildlife and wildlife products.

Environment assessments under the EPBC Act ensure that development is undertaken in a way that supports the protection and recovery of the Australian environment.

The EPBC Act provides for consistent and transparent regulation of activities with the potential to have a significant impact on matters of national environmental significance. Such activities and projects from all industry sectors are referred to the department for assessment.

In 2011–12 the department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act. Of the 412 new referrals received, 132 referrals were determined to be controlled actions requiring further assessment and approval under the EPBC Act, 151 were determined not to be controlled actions, and 94 were determined not to be controlled actions subject to them being undertaken in a particular manner. Seventy-five proposals were approved subject to conditions and one proposal was determined to be clearly unacceptable. Key projects approved included:

the Wheatstone project to be undertaken by Chevron Australia Pty Ltd, which involves the construction and operation of a liquified natural gas and domestic gas plant, including onshore and offshore facilities

the Olympic Dam copper, uranium, gold and silver mine, processing plant and associated infrastructure various iron ore proposals to be developed in the Pilbara Bioregion, Western Australia.

Assessment bilateral agreements

EPBC Act assessment bilateral agreement allows the Commonwealth to avoid duplicating assessment processes by delegating the responsibility for conducting environmental assessments under the EPBC Act to the states and territories and, in some cases, state and territory approval decisions. If a proposed action is assessed under an accredited state/territory process, the action still requires a separate approval decision under the EPBC Act. Alternatively, if proposed actions are covered by an approval bilateral, then they will be assessed and approved by the states and territories in accordance with accredited management arrangements or authorisation processes. No further approval is required from the Commonwealth minister under the EPBC Act. To be accredited, state and territory processes need to meet best practice criteria set out in the EPBC Act and its Regulations.

On 13 April 2012 the Council of Australian Governments (COAG) reaffirmed its commitment to high environmental standards, while reducing duplication and streamlining environmental assessment and approval processes. COAG agreed that governments will work together to achieve reform outcomes. This work will include prioritising the development of bilateral arrangements for accreditation of state and territory assessment and approval processes.

On 21 March 2012 a new bilateral agreement was entered into by Western Australia and the Commonwealth and replaced the previous bilateral agreement. This followed changes to Western Australian environmental legislation in 2010, which introduced a new Public Environmental Review environmental impact assessment process. The new bilateral accredits this process under the Environmental Protection Act 1986 (WA).

The bilateral agreement between the Commonwealth and Queensland accredits specified Queensland environmental impact assessment processes in assessing actions under the EPBC Act. On 14 June 2012 the bilateral agreement was amended to strengthen cooperative arrangements between the Commonwealth and the Queensland Government. In particular, the amended agreement provides a mechanism to ensure that if the Queensland Government believes that the agreed requirements cannot be met, then it will provide early written notification and seek the Commonwealth’s agreement to complete the environmental assessment work.

As of 30 June 2012 assessment bilateral agreements under the EPBC Act were in place between the Commonwealth and all jurisdictions except New South Wales. The New South Wales assessment bilateral agreement expired in January 2012, and a new agreement is being negotiated between the Commonwealth and New South Wales.

Strategic assessments

Under section 146 of the EPBC Act, the minister may agree to assess the impacts of actions under a policy, plan or program, including, but not limited to:

regional-scale development plans and policies large-scale industrial development and associated infrastructure fire, vegetation/resource or pest management policies, plans or programs water extraction and use policies industry sector policies.

Within this context a strategic assessment can cover any number of projects that would otherwise need to be separately assessed under the EPBC Act.

Strategic assessments continue to break new ground and promote ecologically sustainable development and facilitate adaptive management methodologies. These approaches are collaborative between tiers of governments, and have the capacity to better align Commonwealth and state/territory processes while achieving ecological sustainability through consideration of environmental assets at the landscape scale. This therefore provides a tool for reducing regulatory burden by considering Commonwealth and state/territory environmental planning issues in a single assessment process.

Strategic assessments give greater certainty to developers, landholders, planners, industry, governments and the community as it allows for individual future developments to proceed without further assessment if they are consistent with the approved policy, plan or program. This provides considerable scale for dealing with environmental issues in a more holistic and proactive way and allows for cumulative impacts to be considered early in planning processes.

The Commonwealth entered into four new strategic assessments in 2011–12:

Two comprehensive strategic assessments for developments and activities that may impact on the Great Barrier Reef World Heritage Area. This comprises two separate agreements with the Queensland Government and the Great Barrier Reef Marine Park Authority (GBRMPA) to assess:

the GBRMPA’s management arrangements for the Great Barrier Reef World Heritage Area Queensland’s coastal zone planning and development framework for the area adjacent to the Great Barrier

Reef World Heritage Area. The Perth and Peel region urban development strategic assessment with the state of Western Australia. The development of Heathcote Ridge in Sutherland Shire, Sydney, with the Gandangara Local Aboriginal

Land Council in New South Wales.

The minister endorsed and/or approved the following strategic assessments:

Molonglo Valley plan, Australian Capital Territory Western Sydney growth centres, New South Wales Midlands water scheme, Tasmania (involving three stages, with two stages approved as of 30 June 2012).

The department completed a review of strategic assessments to inform best practice. The report A guide to undertaking strategic assessments (2011) is available on the department’s website at <www.environment.gov.au/epbc/publications/guide-to-strategic-assessments.html>.

Preserving the marine environment from pollution

The Environment Protection (Sea Dumping) Act 1981 fulfils Australia’s international obligations under the London Convention and Protocol. In 2011–12, 14 sea dumping permits were issued by the department.

The Sea Installations Act 1987 regulates construction and operation of human-made devices, equipment and other installations in the marine environment to ensure they are operated safely and are environmentally sound. No sea installation permits were granted by the department this year.

The Threatened Species Scientific Committee (TSSC)

In 2011–12 the department provided professional, accurate and timely advice to the TSSC which resulted in listing decisions being made for 13 species and six ecological communities and the provision of advice on key threatening processes under the EPBC Act.

All relevant statutory deadlines were met in 2011–12, with the TSSC operating efficiently and effectively to ensure key outcomes were met.

The TSSC completed and provided assessments for 28 species and nine ecological communities in 2011–12. Nominations were received for 18 species, five ecological communities and three key threatening processes for the assessment period commencing 1October 2012. Work on the list-alignment process with state and territory government agencies continued.

The department also provided secretariat and other support functions for the TSSC, which enabled the smooth running of three major committee meetings, several committee working groups, species-specific external stakeholder workshops (including for koalas and dogfish) and the attendance of committee members at the Senate inquiry into the status, health and sustainability of Australia’s koala population.

In 2011–12 Professor Helene Marsh was appointed to the position of Chair of the TSSC, and Dr Michelle Heupel was also welcomed onto the committee.

The TSSC developed comprehensive listing and conservation advice for all species and ecological communities assessed during 2011–12. One hundred and thirty-one advices were published on Species Profile and Threats (SPRAT) database once they were approved by the minister.

Permit approvals and wildlife management

The international movement of wildlife and wildlife products is regulated under the EPBC Act. The Act provides for the regulation of export trade in specimens derived from regulated native species, imports and exports of species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and the import of regulated live animals.

Export approval can be given provided the specimens have been derived from an approved captive breeding program, artificial propagation program, aquaculture program, wildlife trade operation, or a wildlife trade management plan.

The following wildlife programs were approved in 2011–12:

three captive breeding programs- Silke Weyland (butterflies)- Venom Supplies- Australian Museum (fringed jumping spider)

three new and 14 revised artificial propagation programs one aquaculture program—Murray Darling Fisheries five individual wildlife trade operations (non-fisheries)

- two flora wildlife trade operations (Tasmanian Native Flora and Fillers, M&K Cole Ferns)- three fauna wildlife trade operations (AIMS, Soul Home and Venom Supplies) one wildlife trade management plan (New South Wales Commercial Kangaroo Harvest Management Plan

2012–16).

The department completed 48 assessments for transfers of live animals for exhibition in zoos and aquaria. The department ensures that live animals only go to appropriate zoological institutions through a review process and facility assessment. The department completed 45 facility assessments for a wide range of animals, including koala, Sumatran tiger and western lowland gorilla.

In 2011–12, 617 permits for export were issued, and 1238 permits for import (both CITES and non-CITES specimens).

Mandatory conditions are attached to permits issued by the department authorising international wildlife trade under the EPBC Act. These conditions protect the environment and ensure that international wildlife trade is conducted in accordance with legal requirements and at a level that is not detrimental to the survival of the species in the wild.

Compliance and enforcement

The department takes a strategic approach to ensure that EPBC Act compliance and enforcement is consistent, efficient and effective across the marine and terrestrial environments. This approach includes the development and maintenance of relationships with other compliance and enforcement agencies of the Commonwealth, states and territories.

In 2011–12 the department audited, or commenced auditing, six projects under the random compliance audit program. These projects were selected from approvals made since the inception of the EPBC Act and included: a residential development in Western Australia; two coalmines in Queensland; a surface-water management scheme in Victoria; a dam upgrade in Queensland; and the relocation of a Victorian wholesale market.

The strategic risk-based audit program focuses on specific areas such as industry sectors, geographical areas and protected matters. During 2011–12 the program focused on 13 projects, including seven in the mining and exploration industries, a residential development, an industrial development and a review of four approvals that included conditions requiring the establishment and management of habitat reserves and offsets. Overall, the audits identified a substantial level of compliance with conditions. Instances of non-compliance were addressed in accordance with the department’s Compliance and Enforcement Policy.

The department examined 448 new incidents or activities representing potential breaches of Part 3 of the EPBC Act in 2011–12. Sixty site inspections were undertaken to obtain information to assess whether alleged non-compliance actions had occurred and the department began 15 new cases of alleged breaches of the EPBC Act. Of these there were:

two relating to Part 13A of the EPBC Act (illegal international movement of wildlife specimens) five relating to Part 3 of the EPBC Act (significant impact on matters of national environmental significance) eight relating to EPBC Act marine issues (marine reserve offences and marine species protection).

The EPBC Act provides a range of approaches for compliance issues, including prevention, remediation, civil penalties and criminal prosecutions for more serious breaches, and reporting on compliance and enforcement issues. In 2011–12, enforcement outcomes included 14 successful criminal prosecutions, six infringement notices, one enforceable undertaking and one conservation agreement.

EPBC Act compliance and enforcement activity is consistent with the department’s overarching Compliance and Enforcement Policy, which was updated in December 2009 following approval by the Attorney General’s Department and adoption by the minister. This policy provides regulated entities, stakeholders and the wider community with clear advice on how the department exercises its compliance and enforcement responsibilities across the entire range of legislation administered by the department. The policy is available on the department’s website at <www.environment.gov.au/epbc/publications/epbc-compliance-enforcement-policy.html>.

The department’s Executive Board approved formal adoption of the new EPBC Act Compliance and Enforcement Policy on 21 February 2012. The new policy sits underneath the overarching Compliance and Enforcement Policy and is specific to the EPBC Act. The policy describes the department’s approach to, and the principles that guide, compliance and enforcement activities under the EPBC Act, promotes a consistent, transparent and fair approach to EPBC Act compliance and enforcement activities, and provides guidance for stakeholders and the wider community about how the department addresses potential contraventions of the EPBC Act.

Information on EPBC Act compliance and enforcement activities in terrestrial reserves is in the annual report of the Director of National Parks.

The Supervising Scientist Division

The Alligator Rivers Region, some 220 kilometres east of Darwin, contains a number of former, current and potential uranium mines, including:

Ranger, which is currently in operation Nabarlek, situated in Arnhem Land, where mining has ceased and rehabilitation is underway Jabiluka, which has been in long-term care and maintenance since December 2003 the Koongarra Project Area, which was incorporated into the surrounding World Heritage Area by UNESCO’s

World Heritage Committee in June 2011.

Ranger, Jabiluka and Koongarra are surrounded by but not part of Kakadu National Park. However, a number of small former uranium deposits that were mined during the 1950s and 1960s and finally rehabilitated between 2003 and 2009 are located in what is now the southern portion of Kakadu National Park. The Supervising Scientist Division monitors and conducts research into environmental management at these sites.

To achieve its objectives, the Supervising Scientist Division:

plays a key role in supervising the environmental aspects of regulatory arrangements applying to uranium mining within the region

works closely with the Northern Territory Government’s regulatory body and other stakeholders to ensure that regulatory decisions are based on the best available scientific knowledge

regularly audits and inspects existing and former uranium mine sites within the region undertakes detailed, independent, scientific investigations into incidents, breaches of approval conditions and

environmental requirements of uranium mining operations oversees the regulation of uranium mining in the region to ensure that the government and community can be

confident that regulation is meeting expected standards undertakes an ongoing independent, comprehensive, chemical, biological and radiological monitoring program

designed to detect any potential effects of uranium mining in the region undertakes targeted scientific research to optimise the monitoring programs and to provide early warning of

any potential effects of uranium mining on the environment of the region.

Map 5.1: Alligator Rivers Region, Northern Territory


Protection of matters of national environmental significance

The department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act in 2011–12. Of the 412 new referrals received, 151 referrals were determined not to be a controlled action, 94 referrals were determined not to be a controlled action subject to being undertaken in a particular manner and 132 referrals were determined to require formal assessment and approval under the EPBC Act. Seventy-five proposals were approved under the EPBC Act and one project was deemed clearly unacceptable by the minister.

The Commonwealth entered into four new strategic assessments in 2011–12, including a comprehensive strategic assessment for developments and activities that may impact on the Great Barrier Reef World Heritage Area. In 2011–12, the minister endorsed and/or approved three strategic assessments, including:

o Molonglo Valley plan, Australian Capital Territoryo Western Sydney growth centres, New South Waleso Midlands water scheme, Tasmania (involving three stages, with two stages approved as of 30 June

2012). Based on assessments completed by the Threatened Species Scientific Committee, the minister listed six new

species, including the listing of the koala as vulnerable in Queensland, New South Wales and the Australian Capital Territory, and six ecological communities as threatened under the EPBC Act. Guidelines and landholder factsheets were also published for seven ecological communities.

There were 448 new incidents reported to the department, which were assessed for compliance. Sixty site inspections were undertaken to obtain information to assess whether alleged non-compliance actions had occurred. The department audited, or commenced auditing, six EPBC Act-approved projects under the random compliance auditing program and focused on 13 EPBC Act-approved projects under the strategic risk-based audit program.

A number of significant investigation-related activities were completed, resulting in 14 successful criminal prosecutions, six infringement notices, one enforceable undertaking and one conservation agreement.

During 2011–12, 14 reviews of wildlife permit holder compliance were conducted. Of these reviews, all 14 were completed and finalised. Two thousand four hundred and twenty-five seizure and caution notices were issued by Australian enforcement authorities for the import of suspected CITES specimens without appropriate permission.

The department worked closely with partner agencies to manage wildlife compliance by sharing intelligence and resources. This included state and territory wildlife counterparts, the Australian Customs and Border Protection Service, the Australian Federal Police, CITES Management Authorities in other countries, Interpol, and some non-government organisations. The department has continued to provide information sessions to the Australian Customs and Border Protection Service to assist with their enforcement of CITES at Australian borders. Sessions have been held in Sydney, Perth, Brisbane and Melbourne and included both new-recruit and in-service training.

The department continued to participate in the Coalition Against Wildlife Trafficking (CAWT), becoming the Chair of CAWT from 1 May 2012. The department draws on its ongoing CITES-related activities and initiatives on illegal wildlife trade to implement CAWT objectives.

The department, in partnership with the relevant state and territory government environment agencies, made substantial investment in the recovery of threatened species and ecological communities through developing and implementing recovery plans. The minister or his delegate approved the adoption of 27 national recovery plans under the EPBC Act, covering 36 species and nine ecological communities.

A regional recovery plan for threatened biodiversity on King Island was finalised ready for adoption under the EPBC Act. The plan was developed by the Tasmanian Government in consultation with the King Island community and the department. Upon adoption, it will add to the five other regional recovery plans adopted in recent years to better integrate recovery with other planning initiatives across a defined area of the landscape.

Significant progress has been made on regional recovery plans for the Fitzgerald Biosphere, Christmas Island and Mary River, as well as 24 ecological community plans, 77 single species plans and 20 multi-species plans.

The Species Profile and Threats database collates information about listed species and ecological communities. A total of 131 new or updated profiles were undertaken in 2011–12.

The department worked closely with CSIRO to develop a method for carrying out a national flying fox monitoring program, due to commence in 2012–13.

During 2011–12 the department supported the minister in finalising a new bilateral agreement between the Commonwealth and Western Australia, and in clarifying the roles of the Commonwealth and Queensland under their existing agreement. As of 30 June 2012, bilateral agreements were in place between the Commonwealth and all jurisdictions except New South Wales.

Photo of the Royal Exhibition Buildings and Carlton Gardens. (National Trust of Australia)

Photo of Quality Row, Kingston, Norfolk Island. (Mark Mohell)

Photo of Old Government House & the Government Domain. (Steve Wray)

The Supervising Scientist Division

The adequacy and content of research activities in the Alligator Rivers Region, including those of the Supervising Scientist Division, are regularly reviewed by the Alligator Rivers Region Technical Committee. This statutory committee, established under the provisions of the Environment Protection (Alligator Rivers Region) Act 1978, comprises stakeholder representatives and a majority of independent scientific experts. The committee provides a report to the minister after each meeting. Both reports from the committee during 2011–12 were highly complementary of the Supervising Scientist Division research program.

Case Study 1: National Heritage listing of the West Kimberley

The West Kimberley is an iconic living landscape. Sheer escarpments, spectacular waterfalls and limestone ranges created by ancient coral reefs are the backdrop to a place that weaves together a remarkable account of the evolution of the Australian continent, with Aboriginal history dating back more than 40 000 years. The region’s remoteness has created a haven of biodiversity that supports plant and animal species found nowhere else in Australia. The West Kimberley also tells the story of European exploration and settlement, from William Dampier’s landing place to the development of rich and vibrant pastoral and pearling industries that continue today.

In August 2011 this magnificent region was given Australia’s highest form of heritage recognition by being included in the National Heritage List. The West Kimberley National Heritage place covers more than 19million hectares of land and sea and includes the north Kimberley coast and islands from Cape Leveque to Cambridge Gulf, the Kimberley Plateau, King Leopold Ranges, Devonian Reef, Roebuck Bay and the Fitzroy River and its floodplain.

The West Kimberley assessment was one of the largest and most complex ever undertaken by the Australian Heritage Council and a dedicated team of officers in the department.

Departmental staff consulted widely to bring together all of the outstanding Aboriginal, historic, natural and aesthetic heritage values of the region. The heritage team worked closely with the Kimberley Land Council and Kimberley Traditional Owners to identify Indigenous heritage values and stories. Thirteen native title groups participated in the national heritage assessment process and gave their informed consent to the inclusion of their stories and their traditional land and sea country in the listing. Some of those values include the well-known painted images of Wanjina and other creator beings and ancestors found in numerous rock shelters and caves across the region. These paintings represent a stunning visual record of an ongoing Aboriginal painting tradition that is considered one of the longest and most complex rock art sequences anywhere in the world.

The West Kimberley National Heritage listing also provides insights into the biological and geological processes that have shaped our continent. The place preserves a unique record of ancient life in Australia, including the only prints of a sauropod (a large, four-legged, plant-eating dinosaur) found on the continent, and the Gogo fish fossils, whose remarkable preservation provides a rare insight into the evolution of life on earth, including the development of live birth and the earliest four-limbed vertebrates. The National Heritage values of the West Kimberley National Heritage place are protected under the Environment Protection and Biodiversity Conservation Act 1999. The listing will help to ensure that heritage values are part of decision making and heritage protection will be balanced with the social and economic aspirations of the Kimberley community.

Top left: Bardi dancer Frank Davey Jr. with Minister Tony Burke at One Arm Point on the day the West Kimberley was included on the National Heritage List. Permission granted to use the photograph from the Kimberley Land Council. (A. Tatnell)

Top right: The Devonian Reef at Windjana Gorge in the West Kimberley National Heritage place. (D. Harkess)

Left: Dinosaur trackways in the Broome sandstone in the West Kimberley National Heritage place. (D. Harkess)

Case Study 2: Australia protects US warships lost in the Battle of the Coral Sea

On 7 May 2012 at a moving ceremony at the Australian War Memorial in Canberra, Minister Tony Burke declared the shipwrecks of the USS Lexington, USS Sims and USS Neosho as protected under the Historic Shipwrecks Act 1976. United States Ambassador Mr Jeffrey Bleich responded on behalf of the US Government, thanking the Minister for the declaration. Minister for Veterans’ Affairs, the Hon. Warren Snowden MP, and Minister for Defence, Stephen Smith MP, also attended. The practical result of this declaration is that any actions that may result in the damage, interference, removal or destruction of these shipwrecks or their relics are now illegal.

The stars of the ceremony were four Coral Sea veterans. Two Australian veterans from the battle, Mr Derek Holyoake and Mr Gordon Johnson, both served on the HMAS Hobart. Mr Johnson told of his experience as a young radio operator on the Hobart and gave an interesting historical perspective of the battle.

Two United States veterans, Mr J Harry Frey and Mr Cecil Wiswell, who both served on the USS Lexington, also attended. Mr Frey delighted the audience by telling how he had the presence of mind to liberate the ships’ containment of pineapple sorbet as everyone was ordered to abandon ship, carrying in his helmet and sharing it with his shipmates as they waited for rescue.

The declaration coincided with the 70th anniversary of the Battle of the Coral Sea, in which the ships were sunk. The Battle of the Coral Sea saw the genesis of the alliance between Australia and the United States.

This work is part of the department’s ongoing cooperation with the National Oceanic and Atmospheric Administration (NOAA) that was formalised in 2010 with the signing of a memorandum of understanding on maritime and underwater cultural heritage. The shipwreck positions were identified as a result of archival research led by the department and NOAA in the United States. To coincide with the announcement of the declarations, the department also gave a presentation on shared maritime heritage to staff at the NOAA headquarters in WashingtonDC.

To mark the declaration of these three shipwrecks the department produced a booklet titled Friends across the Pacific: Shared WWII maritime heritage of Australia and the United States.

Mr Gordon Johnson, US Ambassador to Australia, Jeff Bleich and Minister Tony Burke. (Andrew Tatnell)

Case Study 3: Listing of koalas

On 30 April 2012 the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP, listed the koala (combined populations of Queensland, New South Wales and the Australian Capital Territory) as vulnerable under the EPBC Act. This decision followed a rigorous scientific assessment process that involved significant public and expert consultation and consideration of the findings of the Senate Inquiry into the status, health and sustainability of Australia’s koala population. The minister made his decision based on advice he received from the Threatened Species Scientific Committee.

It is widely recognised that koalas are under serious threat from habitat loss, urban expansion, vehicle strikes, dogs and disease. However these threats are not evenly distributed, with koala populations seriously declining in some parts of the country but remaining stable (or even increasing) in other areas. In some parts of Victoria and South Australia, koalas are eating themselves out of suitable foraging habitat and need to be actively managed. This is why the minister listed Australia’s most at-risk populations in Queensland, New South Wales and the Australian Capital Territory, as threatened under national environmental law. Funding was also announced under the National Environmental Research Program ‘Emerging Priorities’ to help find out more about koala habitat and fill information gaps that will assist with future conservation of koala populations.

More information can be found at <www.environment.gov.au/biodiversity/threatened/species/koala.html>.

Photo of a baby koala clinging onto sapling branches. (Dave Watts)

Further case studies related to protection of matters of national environmental significance can be found in the report on the operation of the EPBC Act.

Case Study 4: A new paradigm for assessing water quality performance downstream of the Ranger uranium mine

The Ranger uranium mine, located 250kilometres east of Darwin, is completely surrounded by, but excluded from, the World Heritage-listed Kakadu National Park in the Northern Territory of Australia (see map of the Alligator Rivers Region earlier in this chapter).

To ensure the protection of the Ramsar-listed Magela Creek wetlands downstream of the Ranger mine, and the people who live there, the department conducts a comprehensive water quality monitoring program, including continuous monitoring of key water quality variables. This monitoring shows that concentrations of mine-derived solutes in the Magela Creek downstream from the Ranger mine can fluctuate rapidly due to changes in creek discharge and mine-water discharge.

These fluctuations result in exposure levels of aquatic organisms to mine waters that are different to the laboratory toxicity tests which apply a constant concentration and longer duration of exposure. The laboratory tests are used to produce site-specific trigger values, which represent ‘safe’ levels above which environmental harm could occur for the key mine-derived solutes. As such, these trigger levels may overestimate the effects of shorter-time exposures of mine waters.

To address this issue, the department completed a major project to quantify the toxic effects of short-duration pulse exposures of magnesium to six local aquatic species (see <www.environment.gov.au/ssd/research/ecotoxicology.html>). Magnesium was assessed because it is the primary indicator of mine inputs to Magela Creek, and is also the one that is most likely to approach or exceed its water quality trigger value. Pulse exposure durations of four, eight and 24 hours were tested, based on analysis of five years’ of continuous monitoring data.

The ultimate aim of the project is to develop a model from which water quality trigger values can be inferred for any given exposure duration measured in Magela Creek.

Using the Australian and New Zealand Water Quality Guidelines methodology, toxicity data obtained from over 50 tests were used to derive trigger values for both magnesium and electrical conductivity (Table 1). Electrical conductivity is the key variable that is continuously monitored in Magela Creek and can be used to reliably estimate magnesium.

Toxicity testing in the laboratory. (Andrew Harford)

Table 1: Water quality trigger values for magnesium and electrical conductivity for different exposure durations

Exposure duration 99% species protection trigger value

Magnesium (mg/L) Electrical conductivity (µS/cm)

4 hours 94 1140

8 hours 14 174

24 hours 8 102

Continuous (3–6 days) 3 42

Once the trigger values were derived for the four discrete exposure durations, a model of the relationship between trigger value and exposure duration was constructed using the line of best fit.

Figure 1: Model of the relationship between water quality trigger value (for magnesium and electrical conductivity) and exposure duration

The model allows trigger values to be inferred for any pulse duration between four and 72 hours. During the 2012–13 wet season, this model will form the basis for a magnesium/electrical conductivity trigger value framework that will enable improved interpretation of the potential for environmental effect of transient pulses of electrical conductivity (and magnesium) in Magela Creek downstream of the Ranger mine.

This project highlights how the Supervising Scientist Division is continuing to develop improved water quality assessment methods through targeted research.


Program 5.1: Environment Protection and Heritage Conservation


Provision of funding to assist the protection, conservation and promotion of nationally significant heritage places.

$20 million provided to the Victorian Government for the protection and promotion of the Royal Exhibition Building. $4.5 million for the eradication of rodents on Lord Howe Island. Grant programs were successfully administered, delivering funding to support heritage protection, conservation and interpretation. $7.9 million was provided to 235 projects to assist the protection, conservation and promotion of nationally significant heritage places.

Development of an Australian Heritage Strategy, which provides national leadership in heritage management, conservation and celebration.

Consultation continues on the development of the Australian Heritage Strategy. It is anticipated that the final strategy will be released in the final quarter of 2012–13.

Provision of advice and direction on effective management practices for nationally significant heritage places.

Advice provided to New South Wales and Queensland governments to facilitate the drafting of a Strategic Overview for management of the Gondwana Rainforests of Australia World and National Heritage place.

Fund the state and territory National Trusts to enhance and promote Australia’s heritage.

$970,000 provided for 10 projects in 2011–12.

Assist Papua New Guinea to identify and protect the values of the Kokoda Track and surrounding region.

Under the Kokoda Initiative, $4.391 million was provided to meet the long-term objective of the sustainable development of the Owen Stanley Ranges, Brown River Catchment and Kokoda Track Region and protection of its special natural, cultural and historical values by working towards the five goals set out in the Second Joint Understanding (2010–15) between Papua New Guinea and Australia.

Assist Pacific Island countries to manage and protect their World Heritage sites.

Assistance provided through the Australian Funds-In-Trust for projects in 4 countries (Vanuatu, Papua New Guinea, Tonga and Cambodia). Activities also included a regional workshop on World Heritage, and support for attendance of representatives from Pacific Island Countries to the World Heritage Committee meeting. Pacific Public Sector Linkage Program activities for strengthening World Heritage and protected area governance are being successfully implemented in Vanuatu, Solomon Islands and Papua New Guinea.


2011–12 Results

Funding provided for projects to celebrate nationally significant historical places [$].

$4.425m $8.49 million was provided to 235 projects to assist the protection, conservation and promotion of nationally significant heritage places.

Countries assisted in our region to identify or protect their World Heritage [#].

3 Assistance provided through the Australian Funds-In-Trust for projects in four countries (Vanuatu, Papua New Guinea, Tonga and Cambodia). Activities also included a regional workshop on World Heritage and support for attendance of representatives from Pacific Island Countries to the World Heritage Committee meeting. Pacific Public Sector


2011–12 Results

Linkage Program activities for strengthening World Heritage and protected area governance are being successfully implemented in Vanuatu, Solomon Islands and Papua New Guinea.

Projects funded to protect and conserve nationally significant historical heritage places (including memorials to eminent Australians) [#].

20 45 (consisting of 33 places for Protecting National Historic sites, 6 for Commemorating Eminent Australians and six for Recovering from Natural Disasters).

Funding provided to state and territory agencies to help protect and manage shipwrecks and their relics that are in waters covered by the Historic Shipwrecks Act 1976 [$].

$0.44m Nationally, a significant amount of work was delivered in 2011–12 against the Historic Shipwreck Program’s 6 objectives of: administration; Australian national shipwreck database; shipwreck survey, site monitoring and fieldwork; community engagement; conservation, research and publication; and other activities.

Grants provided to identify, conserve and protect Australia’s Indigenous Heritage [#] [$].

50 $3.65 million

The Indigenous Heritage Program provided $3.6 million to 45 projects to identify, conserve and promote Indigenous heritage places. The program was successfully administered, delivering funding to Indigenous communities to support heritage protection, conservation and interpretation of places important to Aboriginal and Torres Strait Islander people. The program contributes to the Australian Government policy of Closing the Gap on Indigenous disadvantage.


Grants are awarded, executed and acquitted in line with the government’s standards and legislative requirements.

$8.49 million was provided to 235 projects to assist the protection, conservation and promotion of nationally significant heritage places.

Places added to the Commonwealth Heritage List or National Heritage List are assessed in a rigorous and timely manner.

46 places added to the Commonwealth Heritage List. 3 places added to the National Heritage List.

An Australian Heritage Strategy is launched by 30 June 2012.

The Australian Heritage Strategy was not launched by 30 June 2012 due to extended periods of consultation. A final strategy will be released by the final quarter of 2012–13.

Australian Heritage Week takes place in April 2012 in conjunction with the National Trust of Australia.

387 events registered on the Australian Heritage Week website <www.heritage-week.govspace.gov.au>. This website won the international Interactive Media Award for Outstanding Achievement for a government website, and the site received over 7000 hits following its launch in March 2012.

The Kokoda Track remains safe and accessible, and regional values are protected.

Funding provided to the Kokoda Track Authority to manage track operations, including funding for the Livelihoods program, safety activities and organisational support. Assistance was also provided to the Papua New Guinea Department of Environment and Conservation for the implementation of activities that contribute to achieving the goals of the Second Joint Understanding.

Governance systems and management plans for East Rennell (Solomon Islands) and Chief Roi Mata’s Domain (Vanuatu) World Heritage sites are improved.

Multiple activities implemented to improve governance systems for protected area management, enabling Vanuatu, Solomon Islands and Papua New Guinea to better meet their obligations under the World Heritage Convention. This included implementing effective governance mechanisms, which allow for community management of World Heritage sites while ensuring the State Party can meet international obligations under the World Heritage Convention. Key achievements included election of the community management committee for the East Rennell World Heritage site, establishment of Vanuatu World Heritage Advisory Group, and establishment of networks between regional World


Heritage properties (including Solomon Islands, Papua New Guinea, Kiribati and Vanuatu).

Program 5.2: Environmental Regulation


Develop a draft government response to the EPBC Act review for government consideration and implementation.

The Australian Government’s response to the report of the independent review of the Environment Protection and Biodiversity Conservation Act1999 can be viewed at <www.environment.gov.au/epbc/review/publications/final-report>.

Develop information and tools to make it easier for stakeholders to comply with the EPBC Act and the Sea Dumping Act 1981.

131 new or updated profiles of threatened species developed for the SPRAT database.

4 draft and two final EPBC Act referral guidelines published. Guidelines/Landholder factsheets for seven ecological communities

published.

Maintain and improve our legislative and administrative systems to increase the efficiency of our business processes and deliver increasingly high-quality, legally robust and consistent decisions.

As detailed in this chapter and the report on the operation of the EPBC Act, the department placed a major emphasis during 2011–12 on progressing the broad regulatory reform package detailed by the minister in August 2011 which aims to reduce regulatory burdens and duplication within and across jurisdictions. This work has included:

the development of amendments to the EPBC Act progressing the regulatory reforms endorsed by COAG investigating options to increase the protection of national parks.

The department has ensured that the EPBC Act continues to fully meet Australia’s environmental protection and sustainable development needs.

Develop scientifically rigorous and appropriate environmental performance criteria for the operation, closure and rehabilitation of uranium mines in the Alligator Rivers Region.

A final round of aquatic macroinvertebrate sampling was completed for five Ranger mine-impacted and eight reference water bodies elsewhere in the Alligator Rivers Region. Analysis of results from this work was completed and provisional water quality closure criteria have been produced for the Ranger mine.

Develop bilateral agreements and strategic assessments with state and territory governments, in accordance with EPBC Act requirements, to increase the effectiveness of cooperative environmental protection efforts.

Assessment bilateral agreements are being maintained with all states and territories. These allow states and territories to assess project impacts on matters of national environmental significance on behalf of the Commonwealth.


EPBC Act assessments are completed within statutory timelines.

86% of all statutory decisions under the EPBC Act were made within statutory timeframes. This includes permits, listings, recovery plans and environmental impact assessments. Further detail can be found in the report on the operation of the EPBC Act.

Assess or investigate all reported compliance incidences under the EPBC Act.

The department considered all allegations of non-compliance under the EPBC Act. 448 incidents or activities representing potential breaches of Part 3 of the EPBC Act were examined by the department. Additionally, 2425 potential breaches of Part 13A of the EPBC Act were received and assessed, involving issuance of 1600 seizure notices and 825 caution notices.

State and territory government The department commenced work to deliver the COAG agreement of April 2012 to

accredited processes are recognised and incorporated into the operation of the EPBC Act.

fast-track the development arrangements for accreditation of state and territory assessment and approval processes with agreements finalised by March 2013.


2011–12 Results

Statutory decisions under the EPBC Act made within statutory timeframe [%].

95% 86% of all statutory decisions under the EPBC Act were made within statutory timeframes. This includes permits, listings, recovery plans and environmental impact assessments. Further detail can be found in the report on the operation of the EPBC Act.

Instances of uranium concentration of surface water downstream of Ranger mine exceeding six micrograms per litre [%].

0% No instances

The department has historically met its KPIs for Programs 5.1 and 5.2.

Operation of the Environment Protection and Biodiversity Conservation Act 1999This annual report has been prepared in accordance with section 516 of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act). It reports on the operation of the EPBC Act from 1 July 2011 to 30 June 2012 against the main objectives of the Act, which are to:

provide a clear role for the Australian Government in the protection of the environment, especially on matters of national environmental significance, to enhance the protection of important natural and cultural places, and to conserve biodiversity (section 1.1)

control the international movement of wildlife trade and ensure the sustainable management of wildlife industries (section 1.2)

protect and manage marine and terrestrial areas (section 1.3) work towards promoting ecologically sustainable development through increased intergovernmental

cooperation and reduced duplication in environmental impact assessment through strategic approaches (section 2.1)

provide an efficient and effective assessment and approval process (section 2.2) implement a comprehensive monitoring, audit, compliance and enforcement regime for all decisions taken

(section 2.3).

As required, this annual report includes statistics on the operation of the EPBC Act, particularly compliance with statutory timeframes. This information, the membership of advisory committees, and a list of EPBC Act publications produced in 2011–12 are contained in the appendices to this report. The report also provides an overview of regulatory reform activities relating to the future operation of the EPBC Act, including the proposed changes to the Act and its operational framework that were under development in 2011–12 (section 3).

The department’s activities relating to the operation of the EPBC Act are integral to achieving portfolio outcomes in a broad range of areas. These include the conservation and protection of biodiversity and ecosystems in terrestrial and marine areas, and the conservation and preservation of Australia’s natural and human heritage. Consequently, some of these activities are also reported elsewhere in the department’s annual report.

Contents Overview 239 1. Protecting the environment 242

o 1.1 Protecting matters of national environmental significance 242 World and National Heritage 243 Wetlands of international importance 244 Threatened species, ecological communities and migratory species 244

o 1. 2 Wildlife trade and management 249 Live imports 249 Sustainable wildlife industries 250 Wildlife trade permits 250 Fisheries assessments and approvals 251

o 1.3 Protected areas 251 Commonwealth reserves 251

2 Promoting ecologically sustainable development 255 o 2.1 Strategic approaches 255

Strategic assessments 255 Marine bioregional planning 259 Bilateral agreements 259

o 2. 2 Environmental impact assessment 260 Referrals 261 Assessments and approvals 262

o 2.3 Compliance and enforcement 267 Working with others 268

Compliance audit plan 269 Breaches and investigations 269 Legal actions 271

3 EPBC Act regulatory reform 273 o Regulatory reform taskforce 273o Legislation amendments 276

Appendices o Appendix A—Statistics 278o Appendix B—Committees 292o Appendix C—Publications 294o Appendix D—Key threatening processes and threat abatement plans 296

OverviewThe Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is the Australian Government’s central environmental law. It provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places that are defined in the EPBC Act as ‘matters of national environmental significance’.

The eight matters of national environmental significance to which the EPBC Act applies are:

World Heritage sites National Heritage places wetlands of international importance, or Ramsar wetlands nationally threatened species and ecological communities migratory species Commonwealth marine areas the Great Barrier Reef Marine Park nuclear actions.

In addition, the EPBC Act regulates actions that have a significant impact on the environment where the actions affect, or are taken on, Commonwealth land, or are carried out by a Commonwealth agency (even if that significant impact does not directly relate to one of the eight matters of national environmental significance).

A major Australian Government priority is to ensure that Australian environmental regulation, including the EPBC Act, continues to effectively address the challenges involved in combining sustainable economic development with effective environmental protection. This priority was reflected in many aspects of the department’s work relating to the EPBC Act in 2011–12.

International interest in Australia’s environment was highlighted by a joint monitoring mission by the World Heritage Centre and the International Union for the Conservation of Nature to the Great Barrier Reef World Heritage Area in March 2012. The department coordinated this mission, which assessed the conservation of the Great Barrier Reef World Heritage Area. The mission team had over 40 meetings with stakeholders including industry, Traditional Owners and environmental groups. The findings of the mission were considered by the World Heritage Committee at its annual meeting in June 2012.

Other key developments relating to the protection of World Heritage sites during 2011–12 included:

baiting on Macquarie Island, which has significantly reduced rabbits and rodents and led to the re-establishment of tern nesting and the regrowth of the previously lush vegetation cover

provision of $20million for the protection and promotion of the Royal Exhibition Building and Carlton Gardens in Melbourne.

The Australian Government is committed to ensuring that the EPBC Act continues to fully meet Australia’s environmental protection and sustainable development needs. The Independent Review of the Operation of the EPBC Act and the Australian Government’s response to the review’s final report was announced in August 2011 by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP. The review emphasised the importance of reducing regulatory burdens and duplications within and across jurisdictions. Both the

review and the minister confirmed the continuing importance of delivering better environmental outcomes through processes such as ‘one-time’ strategic assessments.

This approach was endorsed by the Council of Australian Governments (COAG). It shaped the department’s work on developing and refining cooperative arrangements between the Commonwealth and other jurisdictions, and on progressing the Australian Government’s National Environment Law Reform package.

The EPBC Act enables the Australian Government and the states and territories to cooperate on environmental impact assessments and approvals under bilateral agreements, subject to the Minister for Sustainability, Environment, Water, Population and Communities being satisfied that agreements meet the objectives and requirements of the EPBC Act. COAG agreed in April 2012 to fast-track the completion of these arrangements, with all agreements to be completed by March 2013. During 2011–12 the department supported the minister in finalising a new bilateral agreement between the Commonwealth and Western Australia, and in clarifying the roles of the Commonwealth and Queensland under their existing agreement. As of 30 June 2012, bilateral agreements were in place between the Commonwealth and all jurisdictions except New South Wales. Further information on bilateral agreements is covered in Section 2.1.

The department placed a major emphasis during 2011–12 on progressing the broad regulatory reform package detailed by the minister in August 2011. This work included:

the development of amendments to the EPBC Act progressing the regulatory reforms endorsed by COAG investigating options to increase the protection of national parks.

Further information on these reforms is in Section 3 of this report.

An important part of the EPBC Act’s protective framework is the identification and listing of threatened species, ecological communities and key threatening processes. The Threatened Species Scientific Committee advises the minister on nominations for these listings. In 2011–12, the minister made listing decisions for 15 species and six ecological communities. These decisions included adding new listings for six species and six ecological communities. Five species were down-listed to a lower category of threat, and two were up-listed to a higher category of threat. As at 30 June 2012, 1791 species, 50 ecological communities and 19 key threatening processes were listed under the EPBC Act. Four hundred and sixty recovery plans were in place during 2011–12, including 27 plans that were made or adopted in that period. One hundred and twenty-four recovery plans were in preparation as at 30 June 2012.

The Australian Government continued to progress the alignment of Commonwealth, state and territory listings in 2011–12. A potential new model to further progress and improve threatened species list alignment was developed in consultation with all jurisdictions. It is planned to finalise this model in 2012–13. This work aligns with one of the priorities identified by COAG at its April2012 meeting.

The EPBC Act enhances the way in which Australia’s Ramsar wetlands are managed and protected, and has established a process for identifying Ramsar wetlands and encourages best practice management through nationally consistent management principles. As of 30 June 2012 Australia had 64 Ramsar wetlands that cover around 8.1 million hectares. No Ramsar sites were added in 2011–12.

The department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act in 2011–2012. The department received 412 new referrals in 2011–12, and 132 referrals were determined to be controlled actions requiring further assessment and approval under the EPBC Act. A total of 151 referrals were determined not to be controlled actions, and 94 referrals were determined not to be controlled actions subject to their being undertaken in a particular manner. Thirty-five per cent of proposals referred under the EPBC Act in 2011–12 were determined to require environmental impact assessment, compared with 38 per cent in 2010–11.

In 2011–12, 75 proposals were approved under the EPBC Act, a decrease on the 103 proposals approved in 2010–11. In 2011–12, 86 per cent of all statutory decisions under the EPBC Act were made within the statutory timeframes, compared with 90 per cent in 2010–11 and 94 per cent in 2009–10. This reflected the complexity of issues raised by many of the proposals considered under the EPBC Act in 2011–12 together with an increase in the number of other statutory requests such as those for statement of reasons, reconsiderations and variations to approvals (61 in 2010–11 compared with 78 in 2011–12), many of which were resource intensive.

In addition to the assessment framework it provides for individual projects, the EPBC Act allows for strategic assessments that consider matters of national environmental significance at a landscape or regional scale. This allows for individual future developments to proceed without further assessment if they are consistent with an approved policy, plan or program. Strategic assessments streamline Commonwealth and state processes, and achieve environmental sustainability by considering environmental assets at the strategic landscape scale. This strategic and streamlined approach is consistent with that endorsed by COAG in 2011–12. The Commonwealth entered into four new strategic assessments in 2011–12, including a comprehensive strategic assessment for developments and activities that may impact on the Great Barrier Reef World Heritage Area. In 2011–12 the minister endorsed and/or approved three strategic assessments, including an assessment for growth centres in Western Sydney.

The department progressed the development of new regional networks of Commonwealth marine reserves as part of the marine bioregional planning process. These reserves will protect examples of Australia’s diverse marine ecosystems and will help meet Australia’s international and national commitments to establish a National Representative System of Marine Protected Areas by 2012. All marine reserve proposals were finalised by 30 June 2012 prior to the government commencing the statutory process to proclaim the new reserves under the EPBC Act. Processes to develop management plans under the EPBC Act for the new Commonwealth marine reserve networks will commence in 2012–13 after the new reserves have been proclaimed. The department’s work on the marine reserves network underlines the importance of the EPBC Act to the management of Australia’s environment.

The department takes a strategic and active approach to ensuring compliance with the EPBC Act. The department formally adopted a new Compliance and Enforcement Policy specific to the EPBC Act in February 2012. The department’s compliance and enforcement activities are undertaken under a Compliance Audit Plan, which involves both a Random Program and a Strategic Audit Program (based on higher environmental risk). The department also works closely with other Commonwealth, state and territory regulatory and enforcement agencies in investigating and prosecuting potential breaches of the EPBC Act.

Operation CETUS formed a highlight of the department’s compliance and enforcement work during 2011–12. This joint national operation by Australian Government and state conservation and environment agencies aimed to protect migrating whales from undue disturbance and enforces whale-approach limits, particularly at popular whale-watching hotspots. As well as compliance and enforcement activities, Operation CETUS promoted responsible whale-watching practice and raised awareness about the national guidelines for whale watching. Further information on this operation is in Section 2.3.

The department considers all allegations of non-compliance under the EPBC Act. The 448 incidents examined by the department in 2011–12 represent a decline from the 466 incidents examined in 2010–11 and 532 incidents examined in 2009–10. This may be attributed to the department’s increased involvement in proactive enforcement and awareness-raising with key stakeholders, and the escalation of enforcement activities in response to serious contraventions of national environmental law.

The EPBC Act contains a range of enforcement mechanisms for managing suspected or identified instances of non-compliance and for reviewing the compliance of referred projects. These mechanisms include environmental audits, civil or criminal penalties for contraventions of the EPBC Act, and remediation orders and determinations to repair or mitigate environmental damage. Section 2.3 details examples of the department’s use of enforcement and compliance mechanisms.

To further encourage compliance, the department engages in cooperative partnerships to build public awareness of the EPBC Act. For example, during 2011–12 the department undertook a series of presentations directed at local councils, state agencies and non-government organisations throughout Australia. Training on awareness and use of EPBC Act compliance and enforcement powers was provided to a number of co-regulator and partner agencies.

Further information on the department’s compliance and enforcement activities under the EPBC Act is in Section 1.3, in relation to Commonwealth marine areas, and in Section 2.3 in relation to all other activities.

The department also provides information to the general public to raise understanding of the EPBC Act and its operations, and policies and guidelines to provide guidance for stakeholders in determining whether a proposed action is likely to have a significant impact on a species or ecological community listed under the Act. Departmental publications produced in 2011–12 are listed in Appendix C of this report.

Protecting the environment

1.1 Protecting matters of national environmental significanceThis section reports on the operation of the EPBC Act in protecting matters of national environmental significance. It also reports on the work of statutory committees and the Australian Heritage Council, which advises on EPBC Act matters.

Two statutory committees currently operate under the EPBC Act: the Threatened Species Scientific Committee (TSSC) and the Indigenous Advisory Committee (IAC). The work of the TSSC is reported under relevant sections of this report.

The IAC has a broad role in advising the minister on the wider operation of the EPBC Act, taking into account Indigenous peoples’ knowledge of land management and the conservation and sustainable use of biodiversity.

The IAC held two meetings in 2011–12. The IAC advised the department and the minister on issues such as Indigenous water engagement, environmental and heritage regulatory reforms, Indigenous sea country management, Indigenous management of dugongs and sea turtles, and Indigenous consultation on the World Heritage listing for the Cape York Peninsula.

The Australian Heritage Council, which is established under the Australian Heritage Council Act 2003, is the Australian Government’s principal advisory body on heritage matters. The council is responsible under the EPBC Act for assessing the heritage values of places nominated for possible inclusion in the National and Commonwealth Heritage lists, and for advising the minister on heritage issues.

World and National Heritage

The Australian Government provides protection under the EPBC Act for World Heritage and National Heritage listed places, and for listing and protecting Commonwealth-owned or controlled heritage places. Under the EPBC Act, the minister’s approval must be obtained before any action can commence that may have a significant impact on the heritage values of a listed place.

World Heritage List

Australia has 19 places in the World Heritage List, which are protected under the EPBC Act and have associated management requirements. Some properties have multiple sites.

Under the EPBC Act, the minister must make a written plan for managing a property lying entirely within one or more Commonwealth areas. Where a property is in a state or self-governing territory, the Commonwealth must use its best endeavours to ensure that a plan is prepared and implemented cooperatively with the relevant state or territory. The plan must be consistent with Australia’s obligations under the World Heritage Convention and the Australian World Heritage management principles for managing a World Heritage property.

All Australian properties in the World Heritage List have management plans, and several plans were being reviewed in 2011–12 to ensure their continuing effectiveness.

National Heritage List

In 2011–12 the minister added three places to the National Heritage List, bringing the total number of places in the list to 97. The additional places were:

the West Kimberley (Western Australia) the HMS Sirius shipwreck (Norfolk Island) the Jordan River Levee Site (Tasmania).

The minister confirmed the Jordan River Levee Site as being included in the National Heritage List on 23 December 2011; this site was previously included in the List for a 12-month period under the emergency listing provisions of the EPBC Act.

Commonwealth Heritage List

In 2011–12, 59 places were either added to the Commonwealth Heritage List or had additional values added to the list. These places were:

56 post offices across Australia the Edward Braddon Commonwealth Law Courts in Hobart the HMS Sirius shipwreck the ABC Regional Radio Studio in Wagin, Western Australia.

As at 30 June 2012 there were 381 places in the Commonwealth Heritage List.

Wetlands of international importance

The EPBC Act enhances the management and protection of Australia’s Ramsar wetlands. (A ‘declared Ramsar wetland’ is an area that is designated under Article 2 of the Ramsar Convention and is declared by the minister to be a declared Ramsar wetland under the EPBC Act.) The EPBC Act also establishes a process for identifying Ramsar wetlands and encourages best practice management through nationally consistent management principles.

The Ramsar Convention encourages the designation of sites containing representative, rare or unique wetlands, or wetlands that are important for conserving biological diversity. In designating a wetland as a Ramsar site, a signatory country agrees to manage the area to ensure that its ecological character is maintained.

At 30 June 2012 Australia had 64 Ramsar wetlands that cover around 8.1 million hectares. No Ramsar sites were added in 2011–12.

The department is working with state and territory governments to finalise ecological character descriptions for Australia’s Ramsar sites according to the National framework and guidance for describing the ecological character of Australia’s Ramsar wetlands. Ecological character descriptions will help support the operation of the EPBC Act by:

providing the baseline description of the ecological character of Ramsar wetlands making it easier to assess the likely impacts of proposed actions on the ecological character of Ramsar

wetlands guiding the development of management plans to provide a basis for evaluating the results of monitoring.

Threatened species, ecological communities and migratory species

The EPBC Act protects Australia’s native species and ecological communities by providing for:

the identification and listing of threatened species and ecological communities the development of conservation advice and recovery plans for listed species and ecological communities the recognition of key threatening processes and, where appropriate, reduction of the impacts of these

processes through threat abatement plans permits being issued for certain actions involving protected species.

Threatened fauna and flora may be listed in categories defined by the EPBC Act. Species listed as extinct in the wild, critically endangered, endangered, or vulnerable are matters of national environmental significance.

Ecological communities are unique and naturally occurring groups of plants, animals and other organisms that interact in a unique habitat. Their structure, composition and distribution are determined by factors such as soil type, position in the landscape, climate, and water availability. Threatened ecological communities listed as Critically Endangered and Endangered are matters of national environmental significance. Threatened ecological communities may also be listed as Vulnerable.

Listed threatened species and ecological communities

The TSSC advised the minister on amending and updating lists of threatened species, threatened ecological communities and key threatening processes. The TSSC also advised on the development or adoption of recovery and threat abatement plans.

The TSSC had three major meetings in 2011–12 and undertook a number of assessments of the conservation status of priority species, ecological communities and key threatening processes.

Assessment period commencing 1 October 2011

No conservation theme was established for the assessment period commencing 1October2011. New nominations were received for 11 species, three key threatening processes and five ecological communities. Several nominations from previous years were also eligible for reconsideration for inclusion on the assessment list. In June 2011 the TSSC assessed the public nominations received and determined its proposed priority assessment list for consideration by the minister. The finalised priority assessment list was published in September 2011.

Assessment period commencing 1 October 2012

The minister established ‘corridors and connecting habitats (including freshwater habitats)’ as the conservation theme for the assessment period commencing 1 October 2012.

For this assessment period, new nominations were received for 18 species, three key threatening processes and five ecological communities. Several nominations from the previous year were also eligible for reconsideration for inclusion on the assessment list. The finalised list is expected to be published in the first quarter of 2012–13, after the minister considers the TSSC’s recommended priorities for assessment.

Listing assessment outcomes

In 2011–12 the minister made listing decisions on the assessments for 15 species and six ecological communities. Ten species were from the Finalised Priority Assessment Lists and five were assessed under arrangements to align state, territory and national lists. For species, as set out in Table 1, there were six new listings, no de-listings and seven transfers. In addition, one species proposed for listing was deemed ineligible for listing in any category, and one species proposed for up-listing was deemed ineligible for up-listing and was retained in its current listing category. Of the seven transfers between categories, two species were up-listed and five species were transferred from Extinct to Critically Endangered (down-listed) following their rediscovery in the wild.

Table 5.1: Species listing assessment outcomes 2011–12

Species Status

Listings

Phascolarctos cinereus (koala) (combined populations of Queensland, New South Wales and the Australian Capital Territory)

Listed as Vulnerable

Prasophyllum bagoense (Bago leek-orchid) Critically Endangered

Pterostylis oreophila (Kiandra greenhood) Critically Endangered

Epinephelus daemelii (black cod) Vulnerable

Acanthophis hawkei (plains death adder) Vulnerable

Pelargonium sp. Striatellum (G.W.Carr 10345) (Omeo stork’s-bill) Listed as Endangered

Transferred species: up-listings

Craterocephalus fluviatilis (Murray hardyhead) Transferred from Vulnerable to Endangered

Taudactylus pleione (Kroombit tinker frog) Transferred from Vulnerable to

Species Status

Critically Endangered

Transferred species: down-listings

Caladenia pumila (dwarf spider-orchid) Transferred from Extinct to Critically Endangered

Philotheca falcata (sickle-leaved waxflower) Transferred from Extinct to Critically Endangered

Prostanthera clotteniana (a shrub) Transferred from Extinct to Critically Endangered

Prostanthera marifolia (Seaforth mintbush) Transferred from Extinct to Critically Endangered

Pterostylis valida (robust greenhood) Transferred from Extinct to Critically Endangered

Ineligible for listing

Senecio longicollaris (a daisy) Not listed

Ineligible for up-listing

Lathamus discolor (swift parrot) Endangered

The Australian Government has partnership agreements with the states and territories to share information and align threatened species lists where appropriate. Through these agreements, species that are endemic to a particular state or territory are first assessed in the relevant jurisdiction, before national assessment by the TSSC for their eligibility for listing under the EPBC Act. Assessments for 103 species assessed through these partnership agreements were completed in 2011–12. As of 30 June 2012, the minister made no listing decisions for these species.

The Australian Government continued to progress the alignment of Commonwealth, state and territory listings in 2011–12. A potential new model to further progress and improve threatened species list alignment was developed in consultation with all jurisdictions. It is planned to finalise this model in 2012–13.

There were six threatened ecological community listings in 2011–12:

Arnhem Plateau Sandstone Shrubland Complex–Endangered Claypans of the Swan Coastal Plain–Critically Endangered Broad-leaf tea-tree (Melaleuca viridiflora) woodlands in high-rainfall coastal north Queensland–Endangered Lowland Rainforest of Subtropical Australia–Critically Endangered Seasonal Herbaceous Wetlands (Freshwater) of the Temperate Lowland Plains–Critically Endangered Upland Basalt Eucalypt Forests of the Sydney Basin Bioregion–Endangered.

Assessments for three other ecological communities were also completed in 2011–12, with listing decisions to be made by the minister in 2012–13. At the time of listing, extensive information is published in listing and conservation advice on the distribution of ecological communities, and their key diagnostic characteristics, condition, relationship to state vegetation classifications, threats, and priority conservation actions.

The department continued to identify ecological communities of high priority for potential listing as matters of national environmental significance under the EPBC Act.

Part of the prioritisation process focuses on endemic ecological communities listed by states and territories in the Endangered and Critically Endangered categories that are likely to benefit most from additional protection under the EPBC Act. In 2011–12 assessments were completed on two state-endemic ecological communities (one in Western Australia and one in Queensland) and work progressed on two others.

A strategic national ecological communities workshop was held in March 2012, with experts from across Australia, to refine prioritisation principles for national listing and identify possible gaps on the national list.

Managing threatened species and ecological communities

The listing of species and ecological communities triggers the protection mechanisms of the EPBC Act. This makes them a priority for funding and management to assist with their recovery and conservation, such as through the Caring for our Country initiative. For example, several listed woodlands and native grasslands are key targets under the Environmental Stewardship program under Caring for our Country, which provides funds and information to support landholders in protecting threatened native vegetation on their properties.

Conservation advice for all new listings of species and ecological communities was prepared and published on the department’s website. Conservation advice provides guidance on immediate recovery and threat abatement activities that can be undertaken to ensure the conservation of newly listed species or ecological communities. The minister approved conservation advice for six newly listed threatened species and six newly listed threatened ecological communities.

Recovery plans

The EPBC Act provides for the making or adopting of recovery plans and conservation advice when a species is listed. Recovery plans set out the research and management actions needed to stop the decline and support the recovery of listed threatened species or threatened ecological communities.

The department, together with state and territory government environment agencies, made substantial investment in the recovery of threatened species and ecological communities by developing and implementing recovery plans. Twenty-seven recovery plans covering 36 species and nine ecological communities were approved by the minister or his delegate. Substantial progress was made on a further 124 recovery plans currently in preparation. The TSSC continues to work with the department on national monitoring and reporting on significant species and ecological communities.

Key threatening processes

The EPBC Act provides for the listing of key threatening processes. A threatening process is one that threatens or may threaten the survival, abundance or evolutionary development of a native species or ecological community. The TSSC advises the minister in the listing of key threatening processes and whether a threat abatement plan or other actions are needed to abate key threatening processes.

There were no key threatening processes added to the list during 2011–12.

A project was initiated and substantially progressed in 2011–12 to review departmental threat prioritisation and abatement processes. This project has involved significant consultation with experts and will be completed in 2012–13.

Threat abatement plans

The draft Threat abatement plan to reduce the impacts on northern Australia’s biodiversity by the five listed grasses was released for public consultation between August and November 2011. Following the Consultations the draft plan was revised and presented to the TSSC in May 2012 for review. The five listed grasses considered under this draft plan are introduced gamba grass (Andropogon gayanus), para grass (Urochloa mutica), olive hymenachne (Hymenachne amplexicaulis), mission grass (Cenchrus polystachios) and annual mission grass (Cenchrus pedicellatus). The key threatening processes and threat abatement plans listed under the EPBC Act are at Appendix D.

Migratory species

The Memorandum of Understanding on the Conservation of Migratory Sharks (Sharks MoU) came into effect in March 2010 and on 4 February 2011, Australia became the 14th signatory to this agreement.

This global memorandum of understanding is the first of its kind for sharks and aims to conserve migratory sharks throughout the world. It currently covers seven shark species: white shark, whale shark, basking shark, porbeagle, shortfin mako, longfin mako, and the northern hemisphere populations of spiny dogfish. All these species except for the spiny dogfish inhabit Australian waters.

The first signatory state meeting for the Sharks MoU will be held in Bonn, Germany, in September 2012.

The work of an intergovernmental joint dugong taskforce with the Queensland Government was completed in December 2011. The taskforce assessed the effectiveness of dugong conservation and management activity in Queensland and provided recommendations for improvements.

The task force focused on:

better coordination and enhancing existing programs for dugong conservation enhancing compliance and enforcement improving community engagement consolidating current scientific knowledge and identifying future key research priorities.

A major outcome of the work of the dugong taskforce was the commitment by the Australian Government of $5 million to support sustainable dugong management and community-led compliance work by Indigenous communities in Queensland.

The Sixth Meeting of Partners of the East Asian–Australasian Flyway Partnership was held in Palembang, Indonesia, from 19 to 22 March 2012. Three new partners—Mongolia, New Zealand and Rio Tinto—were welcomed, bringing the total partners to 27. Rio Tinto is the first partner from the international business sector. An important focus of the meeting was the work of Dr Richard Fuller from the University of Queensland. Dr Fuller is leading an Australian Research Council collaborative grant program, partly funded by the department, which aims to assess factors impacting on the status of Australia’s migratory shorebird populations.

1.2 Wildlife trade and managementThis section reports on the operation of the EPBC Act in regulating the import and export of Australia’s native flora and fauna and of species restricted through international trade controls, and the development of wildlife and fisheries conservation and management plans.

Live imports

The import of live animals into Australia is controlled by the EPBC Act and the Quarantine Act 1908, administered by the Department of Agriculture, Fisheries and Forestry. These laws apply to all imports of live animals.

The List of Specimens Taken to be Suitable for Live Import (the ‘live import list’) specifies all species and specimens that may be imported live into Australia. If a species is not listed then live specimens cannot be legally imported, even if the species has previously been imported or is already known to be in Australia. Anyone can apply to the minister to amend the live import list to include a new species. The applicant must provide a report that assesses the risks that the species may pose to the Australian environment. Each species proposed for inclusion on the live import list is the subject of a detailed assessment, including public consultation.

In 2011–12, eight amendments to the list were approved by the minister. These included the tropical rock lobster (Panulirus ornatus) for commercial purposes, cone snails (Conus spp.) for research, and the Aldabra giant tortoise (Aldabrachelys gigantea) for zoo exhibition. Two biological control agents were added to the live import list: Hylaeogena jureceki (leaf-mining jewel beetle) for the control of cat’s claw creeper; and Aceria lantanae (lantana bud mite) for the control of lantana. A further 10 insect species were approved for import into secure quarantine facilities and only for biological control research.

A range of corrections and taxonomic updates were also approved in 2011–12, including updating the scientific name of the domestic dog (Canis lupus familiaris).

Ten new applications to amend the live import list were received during 2011–12, five of which related to research into potential biological control. Eight of the applications are still under assessment, and two were withdrawn by the applicants, including an application for the import of a silver fox as a pet. This application drew significant public attention, and support for ministerial refusal of the import of this animal. In relation to this application, it should be

emphasised that the EPBC Act does not provide any mechanism for the minister to reject an application without undertaking the full risk assessment and public consultation processes required by the Act.

Sustainable wildlife industries

The international movement of wildlife and wildlife products is regulated under the EPBC Act. The EPBC Act provides for trade in specimens derived from regulated native species, species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and the import of regulated live animals.

Approval can be given provided the specimens have been derived from an approved captive breeding program, artificial propagation program, aquaculture program, wildlife trade operation, or a wildlife trade management plan.

The following wildlife programs were approved in 2011–12:

three captive breeding programs three new and 14 revised artificial propagation programs one aquaculture program seven individual wildlife trade operations (non-fisheries) one wildlife trade management plan.

The department completed 48 assessments for transfers of live animals for exhibition in zoos and aquaria. The department ensures that live animals only go to appropriate zoological institutions through a review process and facility assessment. During 2011–12, the department completed 45 facility assessments for a wide range of animals, including koalas, Sumatran tigers, and the Western Lowland gorilla.

Wildlife trade permits

Under Part 13A of the EPBC Act it is an offence to import or export CITES specimens, export regulated native specimens, and import regulated live specimens, unless a permit has been issued or the import/export is covered by an exemption under the EPBC Act.

In 2011–12 the department issued 1855 permits for the import/export of regulated specimens in the above categories. One thousand five hundred and forty permits were issued for CITES specimens, 289 permits for the export of regulated native specimens and 26 permits for the import of live specimens. The number of personal accompanied baggage permits issued was 13529.

The department issued 140 non-commercial wildlife trade permits to scientists for a range of research purposes, including for importing blue whale DNA (deoxyribonucleic acid) from the United States and exporting echidna tissue samples to Canada.

Fisheries assessment and approvals

Under the EPBC Act the department assesses the environmental performance of management arrangements for fisheries in order to ensure that fisheries are managed in an ecologically sustainable way and to identify areas for improvement. All Commonwealth-managed fisheries and all state and territory fisheries with an export component must undergo assessment.

A total of 109 fisheries are declared as either exempt from the export provisions of the EPBC Act for up to five years, or as approved wildlife trade operations for periods of up to three years.

Of the 27 fisheries comprehensively assessed in 2011–12, two were Commonwealth-managed and 25 were state-managed. All were assessed within statutory timeframes. Thirteen fisheries were approved as wildlife trade operations and 14 were exempt from the export provisions of the EPBC Act.

As a result of this assessment process, conditions and recommendations were agreed between the department and the management agencies for these fisheries. The agencies are required to demonstrate improved environmental performance, and to actively enhance the ecologically sustainable management of fisheries in the short to medium term.

The outcomes are published in detailed reports on the department’s website at <www.environment.gov.au/coasts/fisheries/index.html>.

1.3 Protected areasThe EPBC Act provides for the establishment and protection of Commonwealth reserves, including marine and terrestrial areas, through the preparation and implementation of management plans and the issuing of permits for a range of activities.

Commonwealth reserves

Commonwealth national parks

The Australian Government manages an estate of marine and terrestrial protected areas that are Commonwealth reserves under the EPBC Act. The Director of National Parks manages terrestrial reserves, and delegates the management of marine reserves to the department. The Director of National Parks also prepares a separate annual report on the management of these reserves.

Commonwealth terrestrial reserves

Management plans provide for the protection and conservation of Commonwealth terrestrial reserves and must state how the reserves are to be managed. As of 30 June 2012 the director was responsible for managing seven Commonwealth terrestrial reserves. Management plans are currently in place for Kakadu, Uluru-Kata Tjuta National Parks, Norfolk Island National Park and Botanic Garden, and the Australian National Botanic Gardens.

Draft management plans have been prepared for Booderee and Christmas Island national parks. Following the invitation to comment required by subsection 368(5) of the EPBC Act, comments from the public on these draft plans were considered during 2011–12. The plans are expected to be finalised in late 2012. A management plan for Pulu Keeling National Park is also in preparation.

Permits in Commonwealth terrestrial reserves were issued for a range of activities, including scientific research into the following areas:

dieback of Norfolk Island pine trees, Araucaria heterophylla, on the east coast of Australia caused by Botryosphaeria parva

the foraging ecology, reproductive success and population trends of the masked booby, Sula dactylatra fullagari, on Phillip Island

yellow crazy ant supercolony formation to determine if they facilitate secondary invasions by non-native landsnail species and how these invasions may further impact on forest structures

the ecology of Christmas Island’s endemic seabirds to create a sound scientific foundation for effective management

energy metabolism and saltwater balance in the Christmas Island red crab and blue crab the chemical analysis of floral tissue derived from the terrestrial orchid colony (Chiloglottis trapeziformis) at

the Australian National Botanic Gardens, for RNA (ribonucleic acid) and DNA extraction.

Access to biological resources and benefit sharing

Part 8A of the Environment Protection and Biodiversity Conservation Regulations 2000 controls access to biological resources in Commonwealth areas for the purposes of research and development based on their genetic and biochemical properties.

In 2011–12 the department issued 70 permits for access to biological resources in Commonwealth areas. The permits covered a range of research topics including:

the collection of coral core samples from the Coral Sea Conservation Zone to investigate coral growth and environmental factors affecting climate change over the past 500 years

a genetic study of the endangered population of little penguins (Eudyptula minor) to investigate the population size and connectivity between little penguin populations in NSW and to forecast likely population changes

investigation of the role of salinity on Kakadu’s floodplain sedimentary biota, including natural changes in estuarine environments and the potential effects of saltwater intrusion in adjacent floodplains.

Part 8A of the Regulations also requires the development of benefit-sharing arrangements where commercial or potentially commercial research is undertaken on biological resources from Commonwealth areas. In 2011–12 one additional benefit-sharing agreement was finalised. There are currently eight access and benefit-sharing contracts completed for organisations engaged in commercial research, five of which are still active. All active agreements are with Australian public research institutions.

Management of Commonwealth marine reserves

There are 26 Commonwealth Marine Reserves (covering a total of 498440 square kilometres) and two marine conservation zones (covering a total of 984155 square kilometres) established under the EPBC Act. These do not include the Great Barrier Reef Marine Park, marine components of terrestrial reserves managed by Parks Australia, and Antarctic-protected areas. Under delegation from the Director of National Parks, the department’s Marine Division manages 25 of the Commonwealth marine reserves and the Antarctic Division manages the Heard Island and McDonald Islands Marine Reserve.

The department is responsible for the day-to-day management of marine reserves, including compliance and enforcement activities. The department collaborates with other Commonwealth agencies, in particular the Australian Customs and Border Protection Service and the Australian Fisheries Management Authority, and with state agencies, to ensure the effective delivery of management functions. A key objective for 2011–12 was the development of a network management plan for the South-east Commonwealth Marine Reserve Network, which was declared in 2007 and has been under interim management arrangements allowing for ongoing use since that time. The South-east Commonwealth Marine Reserve Network management plan was released for public consultation in July 2012. The plan will provide a framework for future management planning required for new Commonwealth marine reserves identified through the marine bioregional planning process.

Evaluation of Commonwealth marine reserves

In 2011–12 the department continued to implement a management program for Commonwealth marine reserves, building on existing partnerships with state and Commonwealth agencies for compliance, research and community education.

Cooperative management arrangements were developed with state agencies for service delivery in the South-east Commonwealth Marine Reserve Network, Solitary Islands Marine Reserve, Cod Grounds Marine Reserve, Mermaid Marine Reserve, Ningaloo Marine Reserve, Lord Howe Marine Reserve and the Great Australian Bight Marine Park.

A collaborative agreement between the department and the Australian Fisheries Management Authority was established to enable the sharing and analysis of Vessel Monitoring System data from commercial fishers operating in Commonwealth marine reserves, to improve understanding of use patterns in marine reserves. Under the agreement, a ‘geo-fence’ alert system for commercial fishers operating in or entering Commonwealth marine reserves is being developed to assist with awareness of boundaries and rules.

A total of 553 aerial surveillance flights were undertaken by the Border Protection Service and the department, resulting in 577 individual visits to Commonwealth Marine Reserves and covering more than 507000 square kilometres of reserve area. (Of these, the department undertook 26 flights, resulting in 50 individual visits to Commonwealth Marine Reserves and covering more than 48000 square kilometres).

Management activities in the South-east Commonwealth Marine Reserve Network principally involved developing a draft management plan under the EPBC Act for the network. The management of the South-east Commonwealth Marine Reserve Network also involved the development and implementation of an annual risk-based compliance plan, including aerial surveillance, vessel-based patrols and vessel monitoring.

A range of activities in Commonwealth reserves are controlled, or are able to be controlled, under the EPBC Regulations. These include commercial activities (such as mining), commercial fishing, recreational fishing and scientific research. A total of 670 permits and approvals were issued in 2011–12, comprising:

o 469 commercial fishing (in Great Australian Bight, Solitary Islands, and South-east Commonwealth Marine Reserve Network)

o 141 commercial tourism activities (charter fishing, scuba diving and whale and shark watching)o 35 scientific

o 19 recreational access (in the Elizabeth, Middleton and Solitary Islands marine reserves)o three installationso two media activitieso one seismic exploration.

In response to compliance incidents in Commonwealth marine reserves, the department supported the execution of 36 enforcement actions, including two ‘show-cause’ letters, 17 caution notices, four penalty infringements, five pending civil actions, six successful criminal prosecutions (Indonesian fishers on Ashmore Reef National Nature Reserve) under Part 15 of the EPBC Act, and two referrals to the Commonwealth Director of Public Prosecutions for criminal prosecution in relation to offences under the EPBC Act. Additional information on compliance and enforcement activities under the EPBC Act is in Section 2.3.

A three-year pilot program to control tropical fire ants (ginger ants), Solenopsis geminata, continued at Ashmore Reef National Nature Reserve. The program extended to other islands in the Ashmore islet system following positive control outcomes.

Marine reserve surveys and monitoring were undertaken at Lihou and Corringa Herald marine reserves and other important coral reefs in the Coral Sea Conservation Zone.

In partnership with other Commonwealth agencies, three very large ghost nets (which were many kilometres in length) were recovered from northern Australian Commonwealth marine reserves and adjacent waters, to prevent potentially significant impacts on sea turtles, sharks and other species that might become entangled.

The department reviewed the current Heard Island and McDonald Islands Marine Reserve Management Plan, and will finalise the new Heard Island and McDonald Islands Marine Reserve Management Plan in 2013.

Antarctic Treaty Environment Protection

The EPBC Act exempts certain actions from requiring permits if a permit for that action has been issued under the Antarctic Treaty (Environment Protection) Act 1980 (ATEP Act). The EPBC Act states that where an action is taken in accordance with a permit issued under the ATEP Act, and the permit is in force, certain actions involving listed threatened species and ecological communities, migratory species and listed marine species, are not offences. Six of the permits issued by the department under the ATEP Act in 2011–12 facilitated such exemptions.

The department manages access to biological resources, through its system of permit approvals, in an approved arrangement declared on 9 January 2007 under part 8A of the Regulations to the EPBC Act. The department issued 21 permits under part 8A in 2011–12.

2. Promoting ecologically sustainable developmentSection 516A of the EPBC Act requires the department to report on how the department’s activities and administration of the Act accorded with the principles of ecologically sustainable development (ESD). The principles of ESD embodied in Section 3A of the EPBC Act are:

a. decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations

b. if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation

c. the principle of inter-generational equity—that the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations

d. the conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making

e. improved valuation, pricing and incentive mechanisms should be promoted.

These principles are relevant to all activities and decisions made by the minister and the department in relation to the operation of the EPBC Act. These principles were complied with in all portfolio activities and decisions under the EPBC Act in 2011–12. In addition, the minister and the department have emphasised approaches such as strategic assessments, bilateral agreements between the Commonwealth and other jurisdictions, and reform of regulatory arrangements, as means of better meeting the principles of ESD in the current and future operation of the EPBC Act. This section of the report describes the department’s work in these areas in 2011–12, specific environmental impact assessments, and the department’s compliance and enforcement activities.

2.1 Strategic Approaches

Strategic assessments

Strategic assessments under the EPBC Act provide a tool for reducing regulatory burden by considering Commonwealth and state and territory environmental planning issues in a single assessment process. These assessments give greater certainty to developers, landholders, planners, industry, governments and the community. Strategic assessments work at the landscape and planning scale and explicitly consider cumulative environmental impacts, including impacts on small patches of native vegetation that might not otherwise be regulated under the EPBC Act because they are below significance thresholds. Under Section 146 of the EPBC Act, the minister may agree to assess the impacts of actions under a policy, plan or program.

These include:

regional-scale development plans and policies large-scale industrial development and associated infrastructure fire management policies vegetation/resource or pest management policies, plans or programs water extraction/use policies infrastructure plans and policies industry sector policies.

The Commonwealth entered into four new strategic assessments in 2011–12.

A comprehensive strategic assessment for developments and activities that may impact on the Great Barrier Reef World Heritage Area. The comprehensive strategic assessment comprises separate agreements with the Queensland Government and the Great Barrier Reef Marine Park Authority (GBRMPA) to assess:

o the GBRMPA’s management arrangements for the Great Barrier Reef World Heritage Areao Queensland’s coastal zone planning and development framework for the area adjacent to the Great

Barrier Reef World Heritage Area. The Perth and Peel region urban development strategic assessment with the state of Western Australia. The development of Heathcote Ridge in Sutherland Shire, Sydney, with the Gandangara Local Aboriginal

Land Council in New South Wales.

The minister has endorsed and/or approved the following strategic assessments:

Molonglo Valley plan, Australian Capital Territory Western Sydney growth centres, New South Wales Midlands water scheme, Tasmania (involving three stages, with two stages approved

as of 30 June 2012).

The department completed a review of strategic assessments to inform best practice. The report, A guide to undertaking strategic assessments (2011), is available on the department’s website at <www.environment.gov.au/epbc/publications/guide-to-strategic-assessments.html>.

Case Study 1: Western Sydney’s growth centres program strategic assessment

In December 2011 the Sydney growth centres strategic assessment program was endorsed under the EPBC Act and, in February 2012, actions taken in accordance with the endorsed program were approved (except those on Commonwealth land or by Commonwealth agencies). This means individual urban development projects do not need any further approval under the EPBC Act if undertaken in accordance with the approved program. The department estimated this would save up to 500 individual project referrals.

Sydney’s population will be nearly six million people by 2036. Proposed Greenfield housing associated with this population increase will focus on the north-west and south-west growth centres, where more than 180000 new homes are planned for 500000 people. Approval of the strategic assessment paves the way for 30 years of sustainable growth

in western Sydney. This approval will help streamline the delivery of affordable new homes within a carefully planned framework that balances infrastructure, employment, land development and environmental protection.

A key issue to consider was impact on Cumberland Plain Shale Woodlands and Shale-Gravel Transition Forest (the ‘Cumberland Plain Woodland’), listed as critically endangered under the EPBC Act. The growth centres contain 2185hectares of Cumberland Plain Woodland, of which 1187hectares will be cleared and 998hectares conserved. This loss is 11 per cent of the remaining 10703hectares of Cumberland Plain Woodland.

The strategic assessment avoids impacts on the highest quality areas of Cumberland Plain Woodland and generates a $530million Growth Centres Conservation Fund to offset impacts by investing in the best quality remnant areas on the Cumberland Plain in western Sydney. These areas have been identified as the Priority Conservation Lands in the New South Wales Cumberland Plain recovery plan.

Photo of Cumberland Plain Shale Woodlands and Shale Gravel Transition Forest, Mt Annan. (Matthew White)

Case Study 2: Molongolo Valley Strategic Assessment

On 7 October 2011 the Minister for Sustainability, Environment, Water, Population and Communities endorsed the Australian Capital Territory Government’s Molonglo Valley plan for the protection of matters of national environmental significance. On 20December 2011 the minister approved actions associated with urban development in East Molonglo as described in the plan.

The Australian Capital Territory’s population is projected to increase from the current 361900 to between 389000 and 460000 people by 2032. The lower Molonglo Valley, comprising the East and West Molonglo strategic assessment area, is one of the few remaining undeveloped areas within the Australian Capital Territory suitable for large-scale urban development capable of accommodating Canberra’s growing population.

Photo of the lower Molonglo Valley landscape.

The strategic assessment of the plan achieved holistic environmental outcomes for matters of national environmental significance and addressed cumulative impacts at the landscape level across the strategic assessment area. The plan avoids, where possible, impacts on matters of national environmental significance by concentrating development away from areas of high conservation value. Where avoidance has not been possible, effective mitigation measures are employed, and offsets consolidated into large contiguous planned reserves and parks that are adaptively managed to maintain and enhance the ecological values of matters of national environmental significance. These include the ecological communities Box-gum Woodland and Natural Temperate Grassland. They also include species pink-tailed worm lizards, and swift and superb parrots species.

The strategic assessment process also commits the Australia Capital Territory Government to develop an adaptive management strategy to set the framework for achieving the plan’s commitments. The strategy focuses on identifying and delivering specific, measurable outcomes for matters of national environmental significance and will ensure a consistent, integrated and efficient application of adaptive management principles and practices to achieve long-term conservation outcomes.

Marine bioregional planning

Marine bioregional plans are being prepared under Section 176 of the EPBC Act, which requires the minister to have regard to a bioregional plan in making any decision for which the plan has relevance. Marine bioregional plans, once finalised, will present a consolidated description of the marine environment and conservation values of each marine region, and will provide a framework for strategic intervention and investment by government to meet its policy objectives and statutory responsibilities.

As part of the marine bioregional planning process, new networks of Commonwealth marine reserves (also called marine protected areas or marine parks) are being identified. These reserves will protect examples of Australia’s diverse marine ecosystems and will help meet Australia’s international and national commitments to establish a national representative system of Marine Protected Areas by 2012.

The marine bioregional planning process is targeted at Commonwealth waters between the outer limit of state/territory waters (usually 3 nautical miles offshore) and the outer limits of Australia’s exclusive economic zone, 200 nautical miles offshore.

Draft marine bioregional plans and marine reserve network proposals for the North-west and North regions were released for public consultation in August 2011. A draft marine bioregional plan and marine reserve network proposal for the Temperate East region, and a Coral Sea Commonwealth Marine Reserve proposal, were released for public consultation in November 2011. Public consultation on the draft South-west Marine Bioregional Plan and marine reserve network proposal concluded in August 2011. The final Commonwealth marine reserves proposals for all regions were publicly released in June 2012 ahead of the statutory process to proclaim the new reserves under the EPBC Act. Processes to develop management plans under the EPBC Act for the new Commonwealth marine reserve networks will commence after the regional networks have been proclaimed.

Bilateral agreements

A key function of bilateral agreements is to reduce duplication of environmental assessment and regulation between the Commonwealth and the states and territories. Bilateral agreements allow the Commonwealth to accredit particular state and territory assessment processes and, in some cases, state and territory approval decisions. To be accredited, state and territory processes need to meet best practice criteria set out in the EPBC Act and its regulations.

If proposed actions are covered by an assessment bilateral, then they are assessed under the accredited state and territory processes. After assessment, the proposed actions still require approval from the Commonwealth minister under the EPBC Act.

If proposed actions are covered by an approval bilateral, then they will be assessed and approved by the states and territories in accordance with accredited management arrangements or authorisation processes. No further approval is required from the Commonwealth minister under the EPBC Act.

On 13 April 2012 the Council of Australian Governments (COAG) reaffirmed its commitment to high environmental standards, while reducing duplication and streamlining environmental assessment and approval processes. COAG agreed that governments will work together to achieve reform outcomes. This work will include fast-tracking the development of bilateral arrangements for accreditation of state and territory assessment and approval processes, with frameworks to be agreed by December 2012 and all agreements to be finalised by March 2013.

On 21 March 2012 a new bilateral agreement was entered into by the State of Western Australia and the Commonwealth and replaced the previous bilateral agreement. This followed changes to Western Australian environmental legislation in 2010 which introduced a new environmental impact assessment process. The new bilateral accredits this process under the Environmental Protection Act 1986 (WA).

The bilateral agreement between the Commonwealth and Queensland accredits specified Queensland environmental impact assessment processes in assessing actions under the EPBC Act. On 14 June 2012 the bilateral agreement was amended to strengthen cooperative arrangements between the Commonwealth and the Queensland Government. In particular, the amended agreement provides a mechanism to ensure that if the Queensland Government believes that the agreed requirements cannot be met, then it will provide early written notification and seek the Commonwealth’s agreement to complete the environmental assessment work.

As of 30 June 2012 bilateral agreements under the EPBC Act were in place between the Commonwealth and all jurisdictions except New South Wales. The New South Wales bilateral agreement expired in January 2012, and a new agreement is being negotiated between the Commonwealth and New South Wales as part of the expedited arrangements agreed by COAG.

2.2 Environmental impact assessmentThe department works closely with proponents, state, territory and local governments, and other stakeholders, including consultants, to ensure that the requirements of the environmental assessment process under the EPBC Act are understood. The department encourages proponents to discuss projects early in their development so that EPBC Act-related issues can be highlighted and taken into account in a project’s decision making and planning.

Projects that most effectively achieve regulatory certainty under the EPBC Act are consistently characterised by:

proponents engaging early with the department to ensure that EPBC Act obligations are fully understood proponents seeking to address EPBC Act requirements at the same time as state or territory requirements, to

maximise the opportunity to use accredited state and territory assessment processes projects using environmentally conscious design that avoids or minimises habitat clearing proponents providing high-quality information to regulatory agencies proponents engaging positively with the community project outcomes clearly maintaining and enhancing the environment, including, where appropriate, providing

additional habitat for threatened species.

The EPBC Act provides for a case-by-case assessment by either the Australian Government or an accredited assessor under state and territory processes under a bilateral agreement. (See also the Bilateral Agreements section of this report.)

The proponent initiates this process by submitting a referral for a determination on whether a proposed action will have a significant impact on a matter of national environmental significance and, if so, whether further assessment and approval is necessary (which involves a decision on whether the action will be a controlled action). The EPBC Act allows for selection of an assessment approach that is most appropriate to the complexity and scale of the project.

After the proposed action is assessed the minister or delegate then decides whether to approve the action.

In 2011–12 the statutory timeframes for the three key decision points in the environmental assessment process—a decision on whether the action is a controlled action, an assessment approach decision, and the approval decision—were met 63 per cent of the time. Of the decisions that ran over the statutory timeframe, 70 per cent were made within a further 10 business days of the statutory due date.

Detailed statistics relating to EPBC Act referrals, assessments and approvals are in Appendix A.

Referrals

In 2011–12, 412 actions were referred to the Australian Government for decision on whether approval was required under the EPBC Act. This was a small decrease of 3.7 per cent on the previous year. Thirty-two referrals were the result of compliance actions by the department. Western Australia accounted for the highest proportion of referrals, 24 per cent of the total actions referred. On a national basis referrals relating to residential development, renewable energy generation and supply, energy exploration, mining, natural resources management and tourism, were heavily represented in the total actions referred, reflecting broader trends within Australia’s economy.

The possible outcomes of a referral are listed below.

1. Not a controlled action: no approval required as the action described in the referral will not have a significant impact on matters of national environmental significance.

2. Not a controlled action/particular manner: no approval required but the action must be undertaken in the manner specified in the referral. This provision may be used when there is clear evidence that a particular mitigation or avoidance measure will reduce or avoid significant impacts. Penalties apply to breaches of particular-manner decisions.

3. Controlled action: approval is required through the assessment and approval process under the EPBC Act.4. Clearly unacceptable: the proposal is determined, without further assessment, to have an unacceptable impact

on one or more matters of national environmental significance.

In 2011–12, decisions involving referrals were as follows:

151 actions were determined to be not controlled actions and to require no further assessment 94 actions were determined to be not controlled actions if carried out in a particular manner 132 actions were determined to be controlled actions and to require further assessment and approval decision. one action was determined to be clearly unacceptable.

The highest number of controlled action decisions (44) related to mining projects.

Thirty referrals were withdrawn before a controlled action decision, 23 were withdrawn after a controlled action decision and 10 lapsed after a controlled action decision. Five reconsideration requests were received during the year and four decisions were made.

Assessments and approvals

Once a project is determined to be a controlled action under the EPBC Act, further assessment of the likely impacts to matters of national environmental significance is undertaken. A decision is made for all controlled action determinations on the approach by which this assessment is conducted (the ‘assessment approach decision’). There are five different levels of assessment. When deciding on the assessment approach the department considers factors such as the scale of the project, the likely impacts, and the amount of information already provided. Each level requires technical information provided by the proponent to be considered and each allows for a public comment period. Comments received during this time are then considered as part of the impact assessment.

Where appropriate, assessment by bilateral agreements which accredit a particular state and territory assessment process may be used to reduce duplication of environmental assessment and regulation between the Commonwealth and the states and territories. The assessments of 17 projects were completed under bilateral agreements in 2011–12 and a further 91 projects were under assessment using a bilateral agreement as of 30 June 2012.

Following assessment, the minister, or the minister’s delegate, will decide whether to approve the proposed action and the conditions applied to that action. In 2011–12, 75 controlled actions were approved, a decrease (27 per cent) on the 103 controlled actions approved in 2010–11. No controlled actions were not approved in 2011–12. Conditions attached to approvals may include requirements to:

manage the environmental effects of construction provide compensatory habitat to offset impacts on listed species establish monitoring programs to ensure water quality is maintained use independent audits manage effects on cetaceans.

Decisions made, notices issued and invitations to comment under the EPBC Act are published on the department’s website.

Case Study 3: Regional Rail Link

The Regional Rail Link will provide up to 50 kilometres of dual-track rail link from West Werribee to central Melbourne via Sunshine. The project includes a new set of dedicated tracks which will allow regional services to run directly into Melbourne. Regional Rail Link will be funded by the Australian and Victorian governments, with the Australian Government contributing $3.2 million to this project from the Nation Building Program. The department has assessed and approved two sections of the project under different parts of the EPBC Act.

Regional Rail Link Section 1 (Moonee Ponds Creek to 2 kilometres beyond Deer Park Bypass) was referred to the minister on 28 June 2011. On 22 February 2012 a delegate of the minister approved this action with conditions under Part 9 of the EPBC Act. Section 2 of the Regional Rail Link project (West of Werribee to Deer Park) was approved under Part 10 Assessment Process of the EPBC Act on 11 June 2010, if undertaken in accordance with the endorsed strategic assessment program for Delivering Melbourne’s newest sustainable communities.

Regional Rail Link Section 1 will permanently protect and manage the last known population of the endangered Sunshine diuris (Diuris fragrantissima). The approval of Regional Rail Link Section 1 was achieved through good communication between the department and stakeholders and keeping to tight timelines whilst managing and protecting impacts on matters of national environmental significance.

The Regional Rail Link project as a whole demonstrates a collaborative approach and consistent approvals decision process between Part 9 and Part 10 assessment processes of the EPBC Act. This project has led to a refined approach to assessment under the EPBC Act to deliver approvals for a significant Victorian infrastructure project.

Meeting statutory timeframes for assessment approach and approval decisions

The assessment approach and approval decisions made under the EPBC Act are governed by statutory timeframes. Forty-six of the 106 assessment approach decisions were made outside the prescribed statutory timeframes. The majority of late assessment approach decisions were made within 10 business days of the statutory due date.

Forty-two of the 73 approval decisions were made outside the statutory timeframe.

Further information on statutory timeframes for referral, assessment and approval decisions are provided in Table 14 at Appendix A.

Actions by the Australian Government and actions on Commonwealth land

In addition to the eight matters of national environmental significance protected by the EPBC Act, the EPBC Act also regulates actions that have a significant environmental impact on Commonwealth land, or that are carried out by an Australian Government agency.

In 2011–12, one controlled action determination was made relating to Commonwealth land and seven controlled action determinations were made relating to actions by Australian Government agencies.

The relevant Australian Government agency or employee must inform the minister of such a proposal and the minister must assess the action before advising the agency or employee on how to proceed.

In 2011–12, advice was requested on three occasions by the Department of Infrastructure and Transport and the Civil Aviation Safety Authority for proposals involving Commonwealth airports. The minister’s delegate determined that advice was not required for two of those proposals, and the requirements for advice on one proposal was still to be determined as of 30 June 2012.

Case Study 4: BP seismic survey referral decision under the EPBC Act

On 4 August 2011 the minister determined that a proposal by BP Exploration (Alpha) Ltd (BP) to undertake a marine seismic survey in Commonwealth waters in the Great Australian Bight (GAB), approximately 400 kilometres west of Port Lincoln, did not require further assessment under the EPBC Act, provided it was undertaken in a particular manner. Marine seismic surveys use a technique that directs acoustic energy (sound) into the rock beneath the sea floor from equipment towed behind a purpose-built seismic vessel. The loudest sound sources used in seismic survey operations are produced by air guns which generate short, intense pulses of sound directed at the seafloor.

The proposed survey location posed several challenges. The survey area overlapped a potential feeding area for the endangered blue whale (Balaenoptera musculus) and the endangered southern right whale (Eubalaena australis), the latter of which could potentially migrate through the area to calve at the Head of the Bight. In addition, the survey area partly overlapped with the GAB Commonwealth Marine Park, which meant that approval by the Governor-General was also required for the proposal to proceed.

In assessing the referral, the department developed precautionary management measures that ensured that listed threatened and migratory species and the environment of the Commonwealth marine area would not be significantly impacted by the survey. These measures included not undertaking survey operations during the peak southern right whale calving period, and only proceeding with surveys within 300 kilometres of southern right whale calving areas where noise loggers confirmed that sound was below 120 decibels. This is a sound level at which whale behaviour is not expected to be affected. In addition, four marine mammal observers are required on board the seismic vessel to observe for whales, and the sound source is required to be shut down if whales are spotted within 3 kilometres.

The department worked with BP to develop approaches to the survey structure and timeframes that would minimise interactions with whales, and to encourage innovative approaches to prevent significant impact on other protected matters. BP was able to commence the survey on schedule using precautionary management measures. On 1 September 2011 the Governor General approved the seismic survey, taking into account the referral assessment and decision as well as the assessment of the proposal against the provisions of the Great Australian Bight Commonwealth Marine Park Management Plan.

Case Study 5: Chevron Wheatstone approval under the EPBC Act

On 22 September 2011 the minister approved the Wheatstone project to be undertaken by Chevron Australia Pty Ltd. This project entails the construction and operation of a multi-train liquefied natural gas and domestic gas plant approximately 12 kilometres south-west of the town of Onslow in the Pilbara, Western Australia.

The matters protected under the EPBC Act for this project were listed threatened and listed migratory species (such as whales, dolphins, turtles, sawfish and dugongs) and the environment of the Commonwealth marine area. As the project included an offshore facility and pipeline in Commonwealth waters, the project was assessed via a coordinated assessment between the Australian and Western Australian governments, and Chevron prepared a single assessment document for both the state and federal assessment requirements.

Due to the scale and complexity of the project, a range of potential impacts needed to be addressed, including impacts:

on coral and sea grass and foraging habitat for dugong, turtles and sawfish from the three-to-five year dredging program

on marine fauna (whales, dolphins, dugongs and turtles) from construction activities from recreational activities, such as four-wheel-driving and boating, generated by the large workforce of 5000

people.

The 70 conditions imposed by the minister protect listed threatened and migratory species and the Commonwealth marine area from these impacts. The conditions include the requirement to optimise the dredging methodology and to minimise habitat disturbance. They also required an adaptive management approach that uses expert panels using the results of further dugong research to better inform and improve management plans. In addition, Chevron is also required to educate its workforce on the significance of environmental values of the area and their shared responsibility to protect those values, including through a code of conduct, to manage fishing and recreational activities by employees.

The conditions of approval include the development of a comprehensive and innovative offsets package. This package requires Chevron to establish a regional Indigenous sea ranger program for the life of the project, to minimise any impacts to marine species and their coastal habitats, and help enforce the code of conduct. The offsets also include funding from Chevron for research into sea grass ecology and the removal of barriers to the movement of sawfish.

Statements of reasons

Sections 77(4) and 78C(4) of the EPBC Act allow persons to request a statement of reasons about controlled action decisions and reconsideration of controlled action decisions respectively. Under the Administrative Decisions (Judicial Review) Act 1977 (ADJR Act) a statement of reasons can also be requested for administrative decisions made under legislation. In 2011–12, 33 requests were received and 32 statements provided under the ADJR Act and the EPBC Act. (The statutory timeframe for providing one of the statement of reasons requested in 2011–12 carried into 2012–13.)

Reconsideration of a decision

Reconsideration of a decision is available in limited circumstances and is the only way to revoke and remake a decision. Typically, reconsiderations are undertaken on request when there is substantial new information or a substantial change in the likely effects on matters protected.

In 2011–12, four decisions were reconsidered by the minister or his delegate and three decisions were revoked and new decisions made.

Sea dumping

The Environment Protection (Sea Dumping) Act 1981 fulfils Australia’s international obligations under the London Convention and Protocol, which aims to protect and preserve the marine environment from pollution, especially from dumping at sea. During 2011–12, 14 sea dumping permits were issued by the department.

2.3 Compliance and enforcementThe department takes a strategic approach to ensure that EPBC Act compliance and enforcement is consistent, efficient and effective across the marine and terrestrial environments. This approach includes the development and maintenance of relationships with other compliance and enforcement agencies of the Commonwealth, states and territories.

The EPBC Act provides a range of approaches for compliance issues, including prevention, remediation, civil penalties and criminal prosecutions for more serious breaches, and reporting on compliance and enforcement issues. The department makes full use of all available remedies, with a particular emphasis on education and selecting remedies that achieve good environmental outcomes.

EPBC Act compliance and enforcement activity is consistent with the department’s overarching Compliance and Enforcement Policy, which was updated in December 2009 following approval by the Attorney General’s Department and adoption by the minister. This policy provides regulated entities, stakeholders and the wider community with clear advice on how the department exercises its compliance and enforcement responsibilities across the entire range of legislation administered by the department. The policy is available on the department’s website at <www.environment.gov.au/epbc/publications/epbc-compliance-enforcement-policy.html>.

The department adopted the new EPBC Act Compliance and Enforcement Policy on 21February 2012. The new policy sits underneath the overarching Compliance and Enforcement Policy and is specific to the EPBC Act. The policy describes the department’s approach to, and the principles that guide, compliance and enforcement activities under the EPBC Act, promotes a consistent, transparent and fair approach to EPBC Act compliance and enforcement activities, and provides guidance for stakeholders and the wider community about how the department addresses potential contraventions of the EPBC Act.

Information on EPBC Act compliance and enforcement activities in terrestrial reserves is in the annual report of the Director of National Parks.

Working with others

The department has an active EPBC Act compliance and enforcement program. During 2011–12 the department gave a series of presentations on the EPBC Act throughout Australia for local governments, state agencies and non-government organisations, to encourage greater awareness of and compliance with the EPBC Act.

The department shares information and undertakes a variety of joint enforcement operations with other state and territory environmental regulators through the Australasian Environmental Law Enforcement and Regulators Network (AELERT).

AELERT is a network of local, state, territory and Australian Government and New Zealand agencies that share information and develop cohesive regulatory practices. Joint compliance and enforcement operations are undertaken by AELERT members in priority operational areas.

The department continues to work closely with the Interpol Environment Crime Program. Numerous briefings on issues relating to the suspected illegal international movement of wildlife and products were provided in 2011–12 for intelligence and investigation purposes.

Operation CETUS, a national operation by Australian Government and state conservation and environment agencies under the AELERT banner was undertaken between May and November 2011. Operation CETUS aimed to protect migrating whales from undue disturbance and enforce whale approach limits, particularly at whale-watching hotspots. As well as compliance and enforcement activities, Operation CETUS promoted responsible whale-watching practice and raised awareness about the Australian national guidelines for whale and dolphin watching 2005. Forty-five incidents were detected, the majority involving a breach of minimum approach distances. The operation highlighted that the level of awareness of whale-watching regulations is low among recreational boaters.

The department has established relationships with other Australian Government and state agencies for the provision of EPBC Act regulatory services such as the Australian Customs and Border Protection Service, the Australian Fisheries

Management Authority and the Australian Quarantine Inspection Service. Cooperative arrangements are in place with several state agencies to provide compliance and enforcement services in state waters adjoining Commonwealth marine reserves. In November 2011 the department entered into a memorandum of understanding with the Queensland Department of Environment and Heritage Protection to ensure the timely exchange of information relevant to coal seam gas projects in that state.

The department launched an awareness program designed to provide information about the recent listing of the koala under the EPBC Act. As part of this program, the department is staging a series of presentations to New South Wales and Queensland councils, relevant state government departments and non-government organisations. The presentations will include details of the listing rationale, significance and interim referral guidelines, the assessment and approval process, and the compliance and enforcement provisions of the EPBC Act which relate to the koala.

Compliance audit plan

The department’s compliance audit plan comprises a random audit program and a strategic risk-based audit program to verify compliance with conditions of approval and particular manner requirements. The compliance audit plan also evaluates the effectiveness of the conditions and requirements for protecting matters of national environmental significance.

In 2011–12 the department audited, or commenced auditing, six projects under the random compliance audit program. These projects were selected from approvals made since the inception of the EPBC Act and included a residential development in Western Australia, two coalmines in Queensland, a surface-water management scheme in Victoria, a dam upgrade in Queensland and the relocation of a Victorian wholesale market.

The strategic risk-based audit program focuses on specific areas such as industry sectors, geographical areas and protected matters. During 2011–12 the program focused on 13 projects, including seven in the mining and exploration industries, a residential development, an industrial development and a review of four approvals that included conditions requiring the establishment and management of habitat reserves and offsets. Overall, the audits identified a substantial level of compliance with conditions. Instances of non-compliance were addressed in accordance with the department’s Compliance and Enforcement Policy.

The audit programs have also increased cooperation with state and local government co-regulators, enabling joint audits to be carried out and improving information sharing. A summary of the findings of each completed audit is published on the department’s website <www.environment.gov.au>.

The department has a program of actively monitoring projects after approval to ensure adherence to conditions attached to approvals and fulfilment of requirements attached to particular manner decisions. Variations of conditions attached to 16 approvals were processed in 2011–12. One project had its approval revoked in August 2011 following three suspensions over three years. As at 30 June 2012, 900 projects were being monitored by the department.

Breaches and investigations

The department examined 448 new incidents or activities representing potential breaches of part 3 of the EPBC Act in 2011–12. This shows a decreasing trend from the 466 incidents examined in 2010–11 and 532 incidents examined in 2009–10. Sixty site inspections were undertaken to obtain information to assess whether alleged non-compliance actions had occurred. The decreasing trend in incidents examined since 2009–10 may be attributed to the department’s increased involvement in proactive enforcement and awareness-raising with key stakeholders, and the department’s escalation of its enforcement activities in response to serious contraventions of national environmental law. The department promotes compliance outcomes which send a strong message of deterrence to potential contraventions of the EPBC Act.

Incident reports are carefully examined to determine whether or not the EPBC Act applies. The person or organisation making the initial incident report is advised of the outcome of the completed matter. The most frequently reported matters relate to impacts on the southern cassowary (Casuarius casuarius johnsonii) in Queensland, Natural Temperate Grasslands of the Victorian Volcanic Plain in Victoria, and Carnaby’s black cockatoos (Calyptorhynchus latirostris), Baudin’s black cockatoos (Calyptorhynchus baudinii) and forest red-tailed black cockatoos (Calyptorhynchus banksii naso) in Western Australia. Many reports involve actions that have not yet commenced. In these cases the department investigates them to see if the activity should be regulated. During 2011–12, 32 referrals were received as a result of

departmental intervention. Of these, one has been determined clearly unacceptable under Section 74B, 13 were determined to be controlled actions and four were determined to be not controlled actions provided the actions were undertaken in a particular manner. Seven were determined to be not controlled actions. As of 30 June 2012, the remaining seven are yet to be determined.

The department began 15 new cases of alleged breaches of the EPBC Act. Of these there were:

two relating to Part 13A of the EPBC Act (illegal international movement of wildlife specimens) five relating to Part 3 of the EPBC Act (significant impact on matters of national environmental significance) eight relating to EPBC Act marine issues (marine reserve offences and marine species protection).

The department executed five monitoring warrants and seven search warrants under the EPBC Act. Seventeen notices to produce books and records under Section 486F of the EPBC Act, and one notice to attend, were also served.

Enforcement outcomes included 14 successful criminal prosecutions, six infringement notices, one enforceable undertaking and one conservation agreement as follows:

July 2011: A Bathurst resident received a conviction and a $2,500 fine after pleading guilty in the Downing Centre Local Court, Sydney, to three charges of possessing illegally imported wildlife under the EPBC Act. The conviction follows a successful joint operation by federal and state environment authorities and the NSW Police during July 2010. The Court found that the person was in possession of a number of illegal wildlife specimens, including two leopard geckos, a veiled chameleon and a boa constrictor.

July 2011: Quanstruct Pty Ltd was issued one infringement notice of $6,600 for contravening a condition attached to their approval to construct a dog training facility at Bulla, Victoria, and consequently impacted upon a nationally threatened ecological community.

August 2011: Two persons entered guilty pleas to offences under the Historic Shipwrecks Act 1976 and the Historic Shipwrecks Regulations 1978 for illegally diving on a historic shipwreck, the Florence D, and removing relics from the wreck. The court ordered that each person be placed on a 12-month good behaviour bond with a $500 surety. No convictions were recorded.

August 2011: Two persons entered guilty pleas to offences under the Historic Shipwrecks Act 1976. The court imposed fines totalling $1,750 after the pair undertook an illegal dive inside the wreck of the SS Yongala in the Great Barrier Reef marine park.

August 2011: Departmental officers involved in Operation BONAPARTE seized a vast collection of allegedly illegal wildlife products. This was one of the largest wildlife seizures in Australia and followed detailed monitoring and investigative work by departmental officers. The matter is currently under review for criminal prosecution.

October 2011: Centennial Coal, in mitigating damage caused by its mining operations on a nationally threatened ecological community on Newnes Plateau, NSW, entered into an enforceable undertaking with the minister in which it committed to pay $1.45 million towards a four-year research program. The program is being administered by the Fenner School of Environment and Society at the Australian National University.

January 2012: Cairns Regional Council was issued one infringement notice valued at $6,600 for contravening a condition attached to its approval to upgrade the Cooper Creek Crossing in far north Queensland.

February 2012: Santos was issued with three infringement notices valued at $6,600 each for contravening conditions attached to their approval. Santos received fines totalling $19,800.

March 2012: Two persons entered guilty pleas to offences related to the possession of illegally imported wildlife specimens, including exotic fish, toads and turtles. One person was given a good behaviour bond of $5,000 and the other was given a good behaviour bond of $1,000.

April 2012: A conservation agreement was entered into with a Bingle Bay banana farmer to restore corridors used by the endangered southern cassowary as a response to unauthorised clearing.

April 2012: Seven individuals appeared in the Port Lincoln Magistrates Court where they received a total of $22,000 in fines for killing listed migratory species and other (fisheries-related) offences. This was the result of a joint investigation by the department and Australian Fisheries Management Authority.

April 2012: The Gladstone Ports Corporation Ltd was issued with an infringement notice of $6,600 when a load of dredge spoil was dumped outside the approved disposal area, contravening a condition attached to their approval.

Legal actions

The following legal actions occurred in 2011–12.

Tasmanian Conservation Trust Inc v The Minister for Sustainability, Environment, Water, Population and Communities (Federal Court Proceeding ACD 24/2011)

On 6 June 2011 the Tasmanian Conservation Trust Inc. challenged the minister’s various decisions of 10 March 2011 to vary certain conditions attached to the approval for the Gunns’ Bell Bay Pulp Mill and to approve modules under the conditions of that approval. The Federal Court made consent orders on 19 September 2011 that the proceedings be discontinued.

The Western Australian Land Authority (Landcorp) v The Minister for Sustainability, Environment, Water, Population and Communities [2012] FCA 226

The Western Australian Land Authority (Landcorp) made an application in the Federal Court for a review of the controlled action decision made by a delegate of the minister in respect of the Mandurah Junction Landcorp Development.

On 15 March 2012 Justice Gilmour found in the department’s favour that it had: not taken an irrelevant consideration into account; taken into account all relevant considerations; not made a decision so unreasonable that no reasonable person could have made the decision.

Justice Gilmour found that the department had breached the rules of procedural fairness by not: providing the applicant with relevant sections of the 2009 and 2012 Draft Guidelines; clearly informing the applicant that the cumulative impact of a number of approvals for developments in the area was a consideration which the decision maker was taking into account; providing the applicant with an opportunity to respond to the cumulative impact consideration; assuming that the expert report had not considered the cumulative impact of the development without asking the applicant if this was the case.

Justice Gimour made orders quashing the decision and referring the matter to the respondent for reconsideration according to law.

The Western Australian Land Authority (Landcorp) v Minister for Sustainability, Environment, Water, Population & Communities (WAD250/2011)

The Western Australian Land Authority (Landcorp) made an application to review the minister’s approval decision. However, this matter was held in abeyance pending the outcome of [2012] FCA 226. Now that [2012] FCA 226 has been decided, the parties will need to resolve how this application will be finalised.

Pacific Reef Fisheries (Bowen) Pty Ltd v Minister for Environment Protection, Heritage and the Arts (‘Guthalungra’)(QUD 180/2010)

On 26 May 2010 Pacific Reef Fisheries lodged a challenge in the Federal Court to the minister’s approval decision concerning the construction and operation of a black tiger prawn aquaculture facility and associated treatment ponds near Bowen, Queensland. The Federal Court made consent orders on 15 November 2011 dismissing the proceedings.

Glenn Parker & Others v Minister for Sustainability, Environment, Water, Population and Communities (VID869/2009 & VID1428/2011)

Glenn Parker & Others challenged the minister’s decision to amend the List of Specimens Suitable for Live Import into Australia to exclude the savannah cat. Justice Bromberg handed down his judgment on 18 November 2011 dismissing the application. Glenn Parker & Others appealed to the Full Federal Court and the three Full Federal Court judges handed down a unanimous judgment on 29 June 2012 that dismissed the appeal.

Buzzacott v Minister for Sustainability, Environment, Water, Population & Communities (No 2). [2012] FCA 403

Mr Buzzacott filed an application for judicial review of the minister’s decision to approve the expansion of the Olympic Dam processing plant, subject to conditions. On 20 April 2012 Justice Besanko dismissed the application. Mr Buzzacott appealed the decision.

The appeal was heard by the Full Federal Court on 21 June 2012 in Adelaide. No decision has been handed down.

Secretary to the Department Of Sustainability And Environment (Vic) v Minister For Sustainability, Environment, Water, Population and Communities (Cth) (VID180/2012)

The Secretary to the Department of Sustainability and Environment (DSE), Victoria, made an application to the Federal Court of Australia to review a decision of the minister that the DSE proposed action, to conduct a research trial involving cattle grazing within the Alpine National Park, will have clearly unacceptable impacts on a matter protected by Part 3 of the EPBC Act. This matter was heard on 3 August 2012.

3. EPBC Act regulatory reform

Regulatory reform taskforce

The work of the department during 2011–12 included the launch and implementation of the National Environment Law Reform package, progressing reforms through COAG, and investigating options to increase the protection of national parks.

Reforming National Environment Law

The minister commissioned Dr Allan Hawke AC in October 2008 to undertake an independent review of the EPBC Act. Dr Hawke presented his final report to the minister in October 2009. The findings of the independent review were discussed in the department’s 2010–11 annual report, and are also available at <www.environment.gov.au/epbc/review/publications/final-report.html>.

The minister announced the government’s National Environment Law Reform package in an address to the National Press Club on 24 August 2011. The reform package included:

the Australian Government response to the report of the independent review of the Environment Protection and Biodiversity Conservation Act1999 (the government response)

the Australian Government biodiversity policy–consultation draft the EPBC Act environmental offsets policy–consultation draft the Consultation paper on cost recovery under the Environment Protection and Biodiversity Conservation

Act1999 a call for expressions of interest in a proposed National Centre for Cooperation on Environment and

Development.

The department is implementing the government’s national environment law reforms, including through the development of amendments to the EPBC Act. These reforms will ensure that Australia’s national environmental laws support efficient and effective environmental protection and facilitate sustainable development. These reforms will also cut regulatory burden and provide increased certainty for the business sector. The department has worked with the Office of Parliamentary Counsel to draft a Bill to implement the government response.

The minister has given high priority to stakeholder engagement throughout the reform process and has held a number of roundtable meetings with industry representatives, environmental organisations and the scientific community. The department has also consulted with stakeholders regarding the proposed amendments. In March 2012 departmental officials discussed with stakeholder peak bodies how the Government response to the independent review of the EPBC Act 1999 will be implemented through amendments to the EPBC Act.

The Australian Government biodiversity policy–consultation draft

This policy aims to deliver a more integrated government approach to addressing the challenge of biodiversity conservation in a changing climate. This policy is intended as a high-level reference guide. It describes the role of the government and the principles that will guide the design and delivery of its policies and programs relating to biodiversity.

The policy reflects Australia’s international obligations under the Convention on Biodiversity and will underpin the Australian Government’s role in delivering Australia’s biodiversity conservation strategy 2010–2030 jointly with state and territory governments. Public consultation on the consultation draft closed on 21 October 2011. Thirty-two submissions were received.

The EPBC Act environmental offsets policy–consultation draft

This consultation draft outlines the government’s position on the use of environmental offsets under the EPBC Act, including the circumstances under which offsets can be required, how the quantum of offsets and their suitability are determined, and the framework within which the offsets policy will operate.

The draft policy provides a transparent framework to give greater certainty for businesses considering actions that may potentially be subject to an offset requirement, while also promoting consistency and delivering good environmental outcomes. A draft Offsets assessment guide was also released for consultation and has been developed to set out the requirements of the offsets policy in quantitative terms.

Public consultation on the consultation draft closed on 21 October 2011. Fifty-four submissions were received, and were published on the department’s website. Two stakeholder workshops were held in order to discuss the draft policy and guide, on 28 September 2011 and 28 June 2012. The department also commenced consultation with state and territory governments on the draft policy and guide in 2011–12.

Cost recovery under the EPBC Act

The department’s consideration of EPBC Act cost recovery options was initiated following the release of the Australian Government response to the independent review of the EPBC Act in August 2011. The government committed to exploring opportunities for cost recovery under the EPBC Act. The Consultation paper on cost recovery under the EPBC Act was subsequently released on 16 September 2011 for a six-week consultation period. Eighty submissions were received in response.

The Australian Government has decided to proceed with cost recovery arrangements for environmental impact assessments and some categories of strategic assessment, and to increase fees for wildlife trade under the EPBC Act. This is subject to amendments to the EPBC Act and consideration of a final cost recovery impact statement by the government.

On 10 May 2012 the department released a draft cost recovery impact statement for a six-week consultation period. The draft statement outlined in detail the range of activities under the EPBC Act that are proposed to be subject to cost recovery arrangements, and the nature of those arrangements.

On 13 April 2012 the Council of Australian Governments (COAG) reaffirmed its commitment to high environmental standards while committing to reducing duplicative environmental assessment and approval processes for business and industry. EPBC Act cost recovery as outlined in the draft cost recovery impact statement will only apply to the work that the Australian Government does under national environmental law. The Australian Government will not charge for work done by states under accredited arrangements.

National Centre for Cooperation on Environment and Development

The department is considering the establishment of a National Centre for Cooperation on Environment and Development. The proposed national centre would provide a neutral forum in which industry, scientists, non-government organisations and governments could cooperate in developing environmental standards, guidelines and procedures to be used under the EPBC Act.

The department sought expressions of interest on the national centre from interested parties in September 2011. Fifty-five responses to the expressions of interest were received. The department subsequently released a discussion paper to these respondents in May 2012 to provide further information to them on the proposed national centre. The discussion paper outlined the potential scope for membership in the national centre, as well as potential work priorities. Interested parties were asked to indicate the level of participation with the national centre that they were willing to offer, advise on their areas of expertise and experience, and identify specific projects which they would be interested in developing through the national centre.

Council of Australian Governments national reform agenda for environmental regulation

On 19 August 2011 COAG agreed to develop options for a national agenda for reform of environmental regulation including:

national standards for environmental impact assessment and approval greater use of strategic approaches national threatened species listing national approaches for environmental offsets and biodiversity banking.

The Australian Government continued to progress the alignment of Commonwealth, state and territory threatened species listings in 2011–12. A potential new model to further progress and improve threatened species list alignment was developed in consultation with all jurisdictions. It is planned to finalise this model in 2012–13.

On 13 April 2012 COAG reaffirmed its commitment to high environmental standards, while reducing duplication and streamlining assessment and approval processes. COAG agreed that governments will work together to achieve the following reform outcomes to:

fast track the development of bilateral arrangements for accreditation of state and territory assessment and approval processes, with frameworks to be agreed by December 2012 and agreements finalised by March 2013

develop environmental risk- and outcomes-based standards with states and territories by December 2012 examine and facilitate removal of unnecessary duplication and reduce business costs for significant projects.

The work previously agreed by COAG will continue and contribute to the extended scope of COAG’s April 2012 decision.

National parks

The minister announced his intention to provide increased protection for high biodiversity in national parks in Australia in an address to the Sydney Institute on 20 July 2011.

The minister consulted the states, territories and selected stakeholders in July and August 2011 on a potential regulatory approach for providing this increased protection. The department is continuing to investigate options to provide increased protection for national parks, including an analysis of available options through a regulation impact statement.

Legislation amendments

During 2011–12, two private member’s Bills were introduced into the Senate proposing amendments to the EPBC Act. Three private member’s Bills were introduced into the House of Representatives during 2011–12 proposing amendments to that Act, one of which was discharged from the Senate, and one was discharged from the House before 30 June 2012. These Bills were:

The Environment Protection and Biodiversity Conservation Amendment (Emergency Listings) Bill 2011 introduced by Senator Waters on 13 October 2011. This Bill proposed amending the EPBC Act to provide for the emergency listing of threatened species and ecological communities where they are at risk from a significant and imminent threat. The Bill was referred to the Environment and Communications Legislation Committee on 10 November 2011. The Bill remained before the Senate as of 30 June 2012.

The Environment Protection and Biodiversity Conservation Amendment (Monitoring of Whaling) Bill 2012 introduced by Senator Brown on 9 February 2012. This Bill proposed requiring the government to send a Commonwealth vessel to monitor any foreign whaling vessel that enters or nears a whale sanctuary and for the

minister to then publicly release the observations of the Commonwealth vessel. This Bill remained before the Senate as of 30 June 2012.

The Air Services (Aircraft Noise) Amendment Bill 2011, introduced by Ms Moylan MP, on 4 July 2011. This Bill was debated on 31 October 2011 and 18 June 2012. This Bill proposed amending the EPBC Act to require the minister to appoint an independent Community Aviation Advocate if Air Services Australia advises the minister of proposed changes in the management of aircraft noise or airspace management that would have a significant impact on the environment. The Bill also proposes changes to the scope of aviation airspace management actions under the EPBC Act. The Bill remained before the House of Representatives as of 30 June 2012.

The Environment Protection and Biodiversity Conservation Amendment (Mining, Petroleum and Water Resources) Bill 2011, introduced by Mr Windsor MP, on 12 September 2011. This Bill proposed to amend the EPBC Act to introduce an additional matter of national environmental significance: the protection of water resources from mining operations. On 29 May 2012 the Bill was removed from the Notice Paper in accordance with Standing Order 42 (no progress after eight consecutive sitting Mondays).

Three private member’s Bills introduced in the Senate in 2010–11 remained before the Senate as of 30 June 2012. These Bills were:

The Environment Protection and Biodiversity Conservation Amendment (Prohibition of Support for Whaling) Bill 2010, introduced by Senators Brown and Siewert on 29 September 2010. This Bill proposed creating the offence of providing any service, support or resources to organisations engaged in whaling. The Bill remained before the Senate as at 30 June 2012.

The Environment Protection and Biodiversity Conservation Amendment (Bioregional Plans) Bill 2011, introduced by Senator Colbeck on 2 March 2011. This Bill proposed amending the EPBC Act to specify that a bioregional plan is an instrument disallowable by parliament. This Bill remained before the Senate as of 30 June 2012.

The Environment Protection and Biodiversity Conservation Amendment (Protecting Australia’s Water Resources) Bill 2011 introduced by Senator Waters on 2 March 2011. This Bill proposed amending the EPBC Act to require mining operations to have Commonwealth approval if they will have, or are likely to have, significant impact on the quality, structural integrity or hydraulic balance of a water resource. The Bill remained before the Senate as of 30 June 2012.

Two private member’s Bill proposing amendments to the EPBC Act and introduced in the House of Representatives in 2010–11 were discharged from the House in 2011–12. These Bills were:

The Environment Protection and Biodiversity Conservation (Abolition of Alpine Grazing) Bill 2011, introduced by Mr Bandt MP, on 28 February2011. This Bill proposed amending the EPBC Act to deem that the minister had received a referral from the Victorian Government of its proposal to trial cattle grazing in the Alpine National Park, and had decided that this trial was completely unacceptable. On 22 November 2011 the Bill was removed from the Notice Paper in accordance with Standing Order 42 (no progress after eight consecutive sitting Mondays).

The Environment Protection and Biodiversity Conservation (Public Health and Safety) Amendment Bill 2010 introduced in the House of Representatives by Mr Hartsuyker MP, on 15 November 2010 and introduced in the Senate on 10 February 2011. This Bill proposed amending the EPBC Act to enable the minister to approve the relocation of the flying fox colony in Maclean (NSW) upon completion of state approval. This Bill was discharged from the Senate Notice Paper on 13 September 2011.

Appendix A: StatisticsTable A1: Overview of referrals

Referrals 2011–12 Total since commencement of EPBC Act in 2000

Referrals being processed at 1 July 2010 108

Total referrals received 412 4394

Referrals withdrawn before (controlled action) decision 30 174

Referrals where a decision has been made (including reconsiderations)

378 4107

Approval required—controlled action 132 1146

Approval not required—action to be taken in a particular manner

94 840

Approval not required—no conditions on action 151 2113

Action clearly unacceptable 1 8

Referrals lapsed after (controlled action) decision 10 46

Referrals withdrawn after (controlled action) decision 23 204

Referrals being processed at 30 June 2012 114

Table A2: Reconsideration of decisions

Reconsideration of decisions Decisions

Reconsideration decisions being processed at 1 July 2011 1

Reconsideration requests received 2011–12 5

Reconsideration decisions made Total 4

Original decision confirmed 1

Decision revoked and new decision substituted 3

Decision changed from CA to revised controlling provisions 1

Decision changed from NCA (particular manner) to new manners 2

Reconsiderations pending at 30 June 2012 2

Note: the indented figures reflect the breakdown of the total decisions.

Table A3: Referrals and referral decisions by jurisdiction

Referrals received in 2010–11

Decisions made in 2011–12

Action clearly unacceptable

Approval required

Approval not required

Total decisions

CA PM NCA

Antarctica

Christmas Island 3 1 1 2

Cocos-Keeling Island 1

Commonwealth marine

21 2 24 26

Norfolk Island

Other Australian Territory

Other country

ACT 18 8 1 2 11

Jervis Bay Territory

NSW 69 20 12 30 62

NT 9 5 2 7




Approval required


Total decisions

CA PM NCA

Qld 91 43 13 34 90

SA 23 3 4 14 21

Tas 23 5 4 6 15

Vic 55 1 16 12 24 53

WA 99 30 21 40 91

Total 412 1 132 94 151 378

Note: CA = controlled action; NCA = not controlled action; PM = action to be take in a particular manner.

Table A4: Referrals and referral decisions by activity category




Approval required


Total decisions

CA PM NCA

Agriculture and forestry 5 2 2 4

Aquaculture 1

Commercial development 25 9 3 9 21

Commonwealth 8 1 4 5

Energy generation and supply (non-renewable)

18 4 2 12 18

Energy generation and supply (renewable)

10 3 7 10

Exploration (mineral, oil and gas—marine)

38 2 35 2 39

Exploration (mineral, oil and gas—non-marine)

1 1 2 3

Manufacturing 1 1 1

Mining 80 44 9 13 66

Natural resources management

28 1 4 2 13 20

Private 5 1 1 2 4

Residential development 55 19 3 32 54

Science and research 8 5 1 6

Tele-communications 8 2 6 8

Tourism and recreation 18 2 3 11 16

Transport—air and space 3 2 2

Transport—land 42 16 7 18 41

Transport—water 19 10 9 2 21

Waste management (non-sewerage)

3 4 4




Approval required


Total decisions

CA PM NCA

Waste management (sewerage)

7 1 1 2 4

Water management and use 29 11 6 14 31

Total 412 1 132 94 151 378

Note: CA = controlled action; NCA = not controlled action; PM = action to be take in a particular manner

Table A5: Decisions on assessment approach and assessments by type

Type of assessment decided in 2011–12

Assessments completed in 2011–12

Assessments withdrawn in 2011–12

Assessments lapsed in 2011–12

Recommendation reports completed in 2011–12

Recommendation reports (no approval) completed in 2011–12

Assessments in progress at 30 June 2012

Recommendation reports in progress at 30 June 2012

Commonwealth assessments

Preliminary documentation

67 53 6 7 53 10 128 15

Public environment report

4 3 1 0 3 0 17 3

Referral information

3 6 0 0 6 0 0 0

Environmental impact statement

18 3 4 0 3 0 43 4

State/Territory assessments

Bilateral assessment

23 17 4 1 0 0 91 0

Accredited process

14 4 4 2 0 0 48 0

Table A6: Approvals in 2011–12

Type of approval Number of approvals

Number of approvals since the commencement of the Act

Action approved 75 542

Not approved 0 10

Total decisions 75 552

Awaiting approval at 30 June 2012 23

Awaiting further information from proponent

10

Table A7: Advice requested and provided under section 160

Authorisation provision Requests for advice

Advice not required

Advice required

Assessment completed

Advice provided

R6.01—Sea Dumping Permit 14 12 2 0 0

R6.01—Sea Installations Permit

0 0 0 0 0

S160—Airport Major Development Plan

3 2 1 (still to be decided)

0 0

S160—Airspace Management 1 0 1 0 0

S160—Foreign Aid 0 0 0 0 0

Table A8: Number of matters protected by the EPBC Act

Matter protected Not controlled action—particular manner

Controlled action

Division 1 Matters of national environmental significance

Section 12 World Heritage values of a World Heritage listed property

14 23

Section 15B

National Heritage values of a National Heritage listed place

14 29

Section 16 Ecological character of a declared Ramsar wetland 6 11

Section 18 Listed threatened species or ecological community 82 129

Section 20 Listed migratory species 54 57

Section 21 Nuclear activities with a significant impact on the environment

0 0

Section 23 Commonwealth marine environment 36 19

Section 24B

Activities in the Great Barrier Reef Marine Park 1 18

Division 2 Proposals involving the Commonwealth

Section 26 Commonwealth land 3 2

Section 27B

Activities involving Commonwealth heritage listed places overseas

1 1

Section 28 Commonwealth or Commonwealth agency activity 10 2

Total 199 221

Table A9: Processing of nominations and changes to the list of threatened species, ecological communities and key threatening processes

Species Ecological communities

Key threatening processes

Items on which the Threatened Species Scientific Committee has provided advice to the minister*

95 9 1

Ministerial decisions made on Threatened Species Scientific Committee advice

15 6 0

Ministerial decisions pending on Threatened Species Scientific 80 3 1

Committee advice

Number of ministerial decisions made on Threatened Species Scientific Committee advice in the following categories;

up-listed 2 0 0

down-listed 5 0 0

new 6 0 0

de-listed 0 0 0

rejected/ineligible 1 0 0

no change in status 1 0 0

Number of amendments to the list 15 6 0

Total number of listings as at 30 June 2012 1791 50 19

* Includes ongoing assessments from the 2007, 2008 and 2009 Finalised Priority Assessment Lists. Figures include both public nominations and nominations from the Threatened Species Scientific Committee.

Table A10: Species and ecological communities covered by recovery plans (at 30 June 2012)*

Species Ecological communities Total

Vulnerable Endangered Critically endangered

Extinct in the wild

Vulnerable Endangered Critically endangered

Total number of listed entities

853 675 161 1 1 34 21 1746

Number covered by plans in preparation

90 85 17 0 0 10 15 217

Number covered by plans in place

259 400 76 1 1 19 1 757

Percentage covered by plans in place or in preparation*

39% 72% 56% 100% 100% 85% 76% 56%

*Note: the remaining 44% of listed species not covered by recovery plans are covered by conservation advices (see the section on managing threatened species and ecological communities).

Table A11: Number of recovery plans in preparation and in place at 30 June 2012

Single species

Multispecies Ecological communities

Multiregional Total

Number of plans in place 394 43 18 5 460

Number of plans in preparation* 77 20 24 3 124

Number of plans made or adopted in 2011–12

18 3 6 0 27

*Note: Does not include 22 existing plans that are being revised.

Table A12: Cetacean permits-applications received and permits granted 2011–12

Sub-section of EPBC Act Applications received

Permits granted Conditions varied or revoked

Suspended or cancelled

238 (3) (a) cetacean conservation; or (b) incidental interference

10 8 (2 permits were pending as at 30 June 2012)

0 0

238 (3) (c) whale watching 0 0 0 0

Total 10 8 0 0

Table A13: Assessments of Commonwealth-and-state managed fisheries completed 2011–12

Jurisdiction Fishery Current assessment decisions

Decision date

LD East Coast Beche-de-mer Fishery

WTO 18/07/2011

NT Trepang Fishery WTO 27/07/2011

NSW Abalone Fishery WTO 10/08/2011

Tas King Island Cast Bull Kelp Fishery

Exempt 15/08/2011

Qld Fin Fish (Stout Whiting) Trawl Fishery

WTO 16/08/2011

WA Beche-der-mer Fishery WTO 29/08/2011

Tas Commercial Dive Fishery Exempt 6/09/2011

WA Cocos Keeling Islands Marine Aquarium Managed Fishery

Exempt 8/09/2011

SA Sea Urchin Fishery Exempt 28/09/2011

WA Shark Bay Crab (Interim) Managed Fishery

Exempt 4/10/2011

Vic Sea Urchin Fishery Exempt 20/10/2011

WA South Coast Crustacean Fishery WTO 16/11/2011

NSW Estuary Prawn Trawl Fishery WTO 21/11/2011

Qld Marine Aquarium Fish Fishery WTO 25/11/2011

Qld Spanner Crab Fishery Exempt 19/01/2012

Vic Scallop Fishery WTO 23/01/2012

Commonwealth Skipjack Tuna Fishery Exempt 24/01/2012

Tas Scallop Fishery Exempt 27/01/2012

SA Marine Scalefish Fishery WTO 30/01/2012

Tas Abalone Fishery Exempt 31/01/2012

Tas Rock Lobster Exempt 1/02/2012

Qld East Coast Inshore Fin Fish Fishery

WTO 23/02/2012

NSW Lobster Fishery Exempt 19/03/2012

Qld River and Inshore (Beam) WTO 10/04/2012

Jurisdiction Fishery Current assessment decisions

Decision date

Trawl Fishery

Tas Harvest of native oysters from the Tasmanian Shellfish Fishery

Exempt 27/04/2012

Table A13: Assessments of Commonwealth-and-state managed fisheries completed 2011–12 Commonwealth

Heard Island & McDonald Islands Fishery

Exempt 7/05/2012

Qld Coral Fishery WTO 27/06/2012

Compliance with timeframes (section 518 report)

The EPBC Act and Regulations specify timeframes within which decisions must be made and other actions completed. If the timeframes are not met, then in accordance with section 518 of the EPBC Act a statement must be provided setting out the reasons for the delay. Things that were not done within statutory timeframes in 2011–12 are listed in Tables 14 and 15 below.

Table A14: Referrals, assessments and approvals in 2011–12

Section Total Late Reasons for delay

74B(1)–Timing of decision on action is clearly unacceptable

1 1 Further detailed information sought from proponent

75(5) Controlled action determination 376 117 Administrative delays and further information and consultation required

77(1) Controlled action determination notice 371 34 Administrative delays

77(4) Controlled action timing of reasons for decision 3 2 Administrative delays

88(1) Assessment approach decision 106 46 Administrative delays

88(2) Assessment approach decision and controlled action determination made on the same day

106 10 Administrative delays

91(1) Notice of decision on assessment approach 129 24 Administrative delays

95A(2) Request for further information 57 8 Administrative delays and further information and consultation required

95A(3) Direction to publish 46 12 Administrative delays

95C(2) Recommendation report 53 7 Administrative delays

96A(4)(b) Public Environment Report guidelines 3 1 Administrative delays

101A(4)(b) Provide Environmental Impact Assessment guidelines to designated proponent


105(1) Provide Environmental Impact Assessment recommendation report to the Minister

1 1 Need for adequate consideration of complex legal and environmental issues

130(1B) Timing of decision on approval 73 42 Administrative delays and further consultation required

156B(1) Decision whether to accept a varied proposal 25 9 Further detailed information sought from proponent and administrative delays

156E(1) Timing of the written notice of the decision of the decision on a varied proposal

25 1 Administrative error

156E(2) Timing of written notice to accept a varied proposal

17 3 Administrative error


156E(3) Direction to publish the request to accept a varied proposal


156F(5) Publication of notice relating to change of person proposing to take action

14 8 Administrative delays and need to obtain legal advice/review

170A(c) Publication of information relating to assessments: controlled action decisions


170A(d) Publication of information relating to assessments: decisions on assessment approach


170A(e) Publication of information relating to assessments: preliminary documentation


170A(f) Publication of information relating to assessments: guidelines


170A(h) Publication of information relating to assessments: reports or statements


170A(i) Publication of information relating to assessments: final recommendation report


170A(ia) Publication of information relating to assessments: recommendation reports


170A(j) Publication of information relating to assessments: other matters


Table A15: Other provisions


65(2)–Review of Bilateral Agreements 1 1 Administrative delays

194Q(3) Decision whether to include item 58 55 Delay in obtaining sufficient information to make decision and more information required to make decision

266B(6) Approved conservation advice for listed threatened species and listed threatened ecological communities


294(2) Time limit for review of plans 4 4 Administrative delays

303CI Time limit for making permit decisions–CITES 1546 1 Administrative delays

303EG(1) Timing of decision about proposed amendment of list

6 2 Pressure of ministerial business

341JH(2) Extend the assessment completion time 7 2 Administrative delays

341JI(2) Timing of decision about inclusion of a place in the Commonwealth Heritage List


341M(5) Consider advice of the Australian Heritage Council and public comments


R10.01 BH 8 8 Administrative delays

Appendix B: Committees

Threatened Species Scientific Committee

The committee advises the minister on the amendment and updating of the EPBC Act’s lists of threatened species, threatened ecological communities, and key threatening processes, and on the making or adoption of recovery plans and threat abatement plans.

Table B16: Membership of the Threatened Species Scientific Committee at 30 June 2012

Membership

Professor Helene Marsh (Chair)

Professor Peter Harrison

Dr Andrea Taylor

Dr Bill Humphreys

Dr Michelle Heupel

Dr John Woinarski

Dr Rosemary Purdie

Dr Guy Fitzhardinge

Dr Keith Walker

Dr Gordon Guymer

Indigenous Advisory Committee

The Indigenous Advisory Committee established under section 505B of the EPBC Act provides advice to the minister on the operation of the EPBC Act by incorporating Indigenous people’s knowledge of land management and the conservation and sustainable use of biodiversity.

Table B17: Membership of the Indigenous Advisory Committee at 30 June 2012

Membership

Ms Melissa George (Chair)

Ms Chrissy Grant (Deputy Chair)

Mr Jason Field

Mr Dave Johnston

Mr Frank Loban

Mr Damein Bell

Ms Francine McCarthy

Mr Joe Morrison

Mr Kado Muir

Mr Daniel Oades

Mr Klynton Wanganeen

Australian Heritage Council

The Australian Heritage Council, which is established under the Australian Heritage Council Act 2003, is the Australian Government’s principal advisory body on heritage matters. The Council is responsible under the EPBC Act for assessing the heritage values of places nominated for possible inclusion in the National and Commonwealth Heritage lists, and for advising the minister on heritage issues.

Table B18: Membership of the Australian Heritage Council at 30 June 2012

Membership

Professor Dr Carmen Lawrence (Chair)

Mr Howard Tanner

Associate Professor Peter Valentine

Mr Rodney Dillon

Dr Jacqueline Huggins AM

Dr Libby Mattiske

Ms Helen Lardner

The council met six times during 2011–12.

Appendix C: 2011–12 publications

Guidelines and policy statements

Compliance and Enforcement Policy: Environment Protection and Biodiversity Conservation Act 1999

‘Environment Protection and Biodiversity Conservation Act 1999: Environment Assessment Manual–Implementing Chapter 4, EPBC Act’.

Draft referral guidelines for the endangered Macquarie perch, Macquaria australasica

Draft referral guidelines for four threatened Tasmanian burrowing crayfish

Referral guidelines for the vulnerable black-eyed susan, Tetratheca juncea

Referral guidelines for the vulnerable striped legless lizard, Delma impar

Draft Referral guidelines for the waum sedllge frog, Litoria olongburensis

Draft referral guidelines for three species of Western Australian black cockatoos

Guidance Note 1–Listings made after a section 75 ‘Controlled Action’ decision: Section 158A of the EPBC Act–February 2012

Guidance Note 2–Expiry Dates for Approvals-February 2012

Guidance Note 3–Definition of ‘action’: Section 523, section 524, and section 524A of the EPBC Act–February 2012

Guidance Note 4–Reconsideration: Implementing the requirements of sections 78, 78A, 78B and 78C of the EPBC Act–April 2012

Guidance Note 5–‘Indirect consequences’ of an action: Section 527E of the EPBC Act– April 2012

Guidance Note 6–Change of person proposing to take an action; Change of proponent; Transfer of approvals: subsection 78(5) and sections 145B and 156F of the EPBC Act– April 2012

Guidance Note 7–Definition of ‘Environment’ under section 528 of the EPBC Act–April 2012

Guidance Note 8–EPBC Act Delegations–April 2012

Guidance Note 11–Prior Authorisation and Continuing Use Exemptions: Sections 43A and 43B of the EPBC Act–May 2012

Guidance Note 12–Staged Developments–Split referrals: Section 74A of the EPBC Act– May 2012

Interim Koala Referral Advice for Proponents

Pamphlets, factsheets, and other publications

Nationally protected broad leaf tea-tree (Melaleuca viridiflora) woodlands in high rainfall coastal north Queensland–does it affect you and your land?–fact sheet

Lowland rainforest & landholders–fact sheet

Arnhem Plateau Sandstone Heath ecological community–fact sheet

Compliance monitoring and auditing–fact sheet

Celebrating Canberra: A nation’s cultural and democratic landscape

Living Heritage (online magazine)–Issues 3–6

Compliance audits completed during 2011–summary of findings

Compliance audits completed during 2012–summary of findings

Australian Heritage Strategy–Public Consultation paper

Australian Heritage Strategy–10 Essays

What is Heritage?–Peter Spearritt What is Heritage?–Susan Tonkin Whose Heritage?–Damein Bell & Joy Elley Whose Heritage is it?–Joann Schmider & Peter James Who are the Players in Heritage and What Roles do they Play?–Don Garden What are the Community Expectations for Heritage Protection?–Chris Johnston What are the Community Expectations for Heritage Protection?–Heath McDonald Delivering the Social and Economic Benefit of Heritage Tourism–Bruce Leaver ‘Only Connect’–The Social, Economic and Environmental Benefits of Cultural Heritage

–Kate Clark Conserving Australia’s Geoheritage–Graeme Worboys

Appendix D: Key threatening processes and threat abatement plansTable D18: Key threatening processes and threat abatement plans

Key threatening process Date of effect

Threat abatement plan required?

Approved threat abatement plan

Competition and land degradation by rabbits 16 July 2000 Yes 2008

Competition and land degradation by unmanaged goats 16 July 2000 Yes 2008

Dieback caused by the root-rot fungus (Phytophthora cinnamomi)

16 July 2000 Yes 2001*

Incidental catch (bycatch) of sea turtles during coastal otter-trawling operations within Australian waters north of 28 degrees south

4 April 2001 No

Incidental catch (or bycatch) of seabirds during oceanic longline fishing operations

16 July 2000 Yes 2006

Infection of amphibians with chytrid fungus resulting in chytridiomycosis

23 July 2002 Yes 2006

Injury and fatality to vertebrate marine life caused by ingestion of, or entanglement in, harmful marine debris

13 August 2003

Yes 2009

Invasion of northern Australia by gamba grass and other introduced grasses

16 September 2009

Yes**

Land clearance 4 April 2001 No

Loss and degradation of native plant and animal habitat by invasion of escaped garden plants, including aquatic plants

8 January 2010

No+

Loss of biodiversity and ecosystem integrity following invasion by the yellow crazy ant (Anoplolepis gracilipes) on Christmas Island, Indian Ocean

12 April 2005 No# 2006#

Loss of terrestrial climatic habitat caused by anthropogenic emissions of greenhouse gases

4 April 2001 No

Predation by European red fox 16 July 2000 Yes 2008

Predation by exotic rats on Australian offshore islands of less than 1000 square km (100 000 hectares)

29 March 2006

Yes 2009

Predation by feral cats 16 July 2000 Yes 2008

Predation, habitat degradation, competition and disease transmission by feral pigs

6 August 2001

Yes 2005

Psittacine circoviral (beak and feather) disease affecting endangered psittacine species

4 April 2001 Yes 2005

The biological effects, including lethal toxic ingestion, caused by cane toads (Bufo marinus)

12 April 2005 Yes 2011

The reduction in the biodiversity of Australian native fauna and flora due to the red imported fire ant, Solenopsis invicta (fire ant)

2 April 2003 No# 2006#

* This threat abatement plan was disallowed in the Senate on 17 November 2009. Until such time as a new or revised plan is made, the 2001 threat abatement plan remains in place. A revised draft plan is under development.

** A threat abatement plan to reduce the impacts on northern Australia’s biodiversity by the five listed grasses is under development

The department provides an annual report to the Threatened Species Scientific Committee on the implementation of the Australian Weeds Strategy and additional measures that abate this key threatening process

Both of these key threatening processes are covered by the 2006 threat abatement plan: ‘The impacts of tramp ants on biodiversity in Australia and its territories’.

Corporate outcome

Sustainable performance

‘Fostering a culture of excellence, achievement and good governance.’


High level strategic advice and support services to the minister, secretary and executive on cross-portfolio matters.

Strategic planning. Secretariat services.

Legal advice.

Communication and stakeholder relations.

Ministerial and parliamentary business.

Policy and Communications Division

Human resources.

Financial management and reporting.

Office accommodation. Environmental management systems. Information communications technology.

Corporate Strategies Division

This chapter encompasses the department’s corporate outcome—to improve the sustainable performance of the department. Sustainability reporting serves to bring to the forefront of each Australian Government entity the short, medium and long-term economic, social and environmental impacts of the way it conducts its internal operations to ensure that sustainability is an essential and integral element of government entities’ decision-making processes.

Corporate governanceThe department’s governance framework assists the department in delivering policy, program and regulatory objectives efficiently, effectively and ethically.

Corporate and operational planning

The department’s Strategic Plan 2011–15 outlines the department’s mission, outcome structure, strategic priorities and key focus areas. The plan provides a framework for the department’s business activities, which support the Australian Government’s objectives to protect the environment and promote a sustainable way of life—to advance a sustainable Australia: our environment, water, heritage and communities.

The Annual Operational Plan provides a yearly roadmap for the delivery of our strategic priorities and goals for the current year. The plan provides an operational description of how the department will achieve the priorities identified in the strategic plan, and in line with the Portfolio Budget Statements. It also serves as an overarching guide to divisions, enabling the development of division, branch and section planning documents. Division, branch and section planning is reflected in performance agreements of individual staff.

In 2011–12 the department strengthened and consolidated corporate and organisational planning. These changes have also responded, in part, to the recommendations of the Capability Review conducted by the Australian Public Service Commission. The Annual Operational Plan and the strategic plan have been more closely aligned, and the department is pursuing opportunities to strengthen its capabilities in the areas of strategy, leadership, delivery, communications and

connections. The recommendations of the Capability Review also provide a strong platform for the next stage of the department’s development, particularly in relation to further improving our capacity to plan strategically for the future and to prioritise effectively across many competing demands.

Oversight of corporate and operational planning is aided by monthly reporting to the Executive Board. This reporting outlines the significant developments and risks associated with all major external and internal projects.

Together, these elements set out the department’s corporate and operational planning, as well as guiding continued improvements in organisational effectiveness.

Executive committees

Table 1: Senior management committees and their roles

Name of committee Role

Biodiversity and Heritage Board

To discuss, consider, and coordinate significant biodiversity and heritage policy, program and regulatory issues.

Departmental Audit Committee

To provide independent assurance to the Secretary on the integrity and reliability of the department’s management of financial processes, risk and fraud control.

Departmental Consultative Committee

To promote good workplace relations in the department by providing a forum for consultation and exchange of information between management, staff and their representatives.

Departmental Environmental Performance Committee

To strengthen whole-of-department environmental performance and management and contribute to reducing any negative environmental impact of the department’s operations.

Departmental Health and Safety Committee

To develop and maintain a partnership between management and workers to strategically manage the health, safety and welfare of all employees, contractors, visitors and third parties to the department. The Work Health and Safety Act 2011 (WHS Act) came into effect on 1 January 2012. In accordance with Part 4 of the Work Health and Safety (Transitional and Consequential Provisions) Act 2011, the Departmental Occupational Health and Safety Committee continues to operate in its current form but was renamed the Departmental Health and Safety Committee. The terms of reference were reviewed to reflect the WHS Act.

Departmental Occupational Health and Safety Committee

The Occupational Health and Safety Act 1991 applied until 31 December 2011. Until this time, the Departmental Occupational Health and Safety Committee considered strategic occupational health and safety (OHS) issues and reviewed and approved OHS policies and policy improvements.

Executive Board To provide assistance and advice to the Secretary in meeting responsibilities under the Public Service Act 1999 to manage the department and meet accountability obligations to the Parliament. As the central governance mechanism for the department, the Executive Board fulfils a coordination role in cross-cutting issues and decisions.

Graduate Steering Committee

To oversee the quality, appropriateness and operation of the department’s Graduate Program and provide guidance in relation to policy and direction.

Information Management Committee

To identify investment priorities in information acquisition and creation, to develop and maintain information infrastructure and systems, and to advise on the development of policies and standards for information and its management.

Reconciliation Action Plan (RAP) Steering Committee

To develop and monitor the department’s RAP and develop the annual progress report against the RAP for Reconciliation Australia.

Regulatory Compliance Executive Committee

To promote and guide consistent and effective regulatory compliance and enforcement work by the portfolio.

Water Group Outcome 4 Project Board

To provide overall guidance and assessment of projects in the Water Group, ensuring alignment with project outcomes.

Name of committee Role

Workforce Management Committee

To oversee the department’s achievement of best practice workforce management and to provide the Executive Board with recommendations on workforce policy issues and risks.

Internal audit

Internal audits improve effectiveness by strengthening the organisational control environment through audits and providing assurance to the secretary (through the Departmental Audit Committee) on the robustness of the department’s governance arrangements.

The department has a dedicated Internal Audit Section. During 2011–12 the internal audit program was delivered in line with the approved Internal Audit Work Plan. Delivery of the internal audit program was supported by PricewaterhouseCoopers, the appointed internal audit service provider to the department.

To further strengthen the quality and performance of the department, internal audit section is continuing to develop its method of identifying and promulgating lessons learnt from audit activities to ensure continuous improvement across the department. This is achieved through a widespread use of a range of audit activity including, Good Start Reviews, Health Check Reviews, Compliance and Program Reviews and ensuring that reports of all audit activity are brought to the attention of senior management. In addition, audit findings are used in a broader context within the department through identifying improvements to governance arrangements and risk and project management.

Departmental Audit Committee

The Departmental Audit Committee provides independent assurance to the secretary on the integrity of the department’s management of financial processes, risk and fraud control. The committee supports an effective and efficient internal audit function in the department. It evaluates the robustness of the department’s internal controls and legislative compliance frameworks to ensure that it can continue to meet its accountability responsibilities.

Ms Elizabeth Montano continued in her appointment as the Chair of the committee. Two new appointments were made to the committee in February 2012, Mr Michael Roche as independent member and Mr David Parker as departmental member (replacing Mr Mark Tucker). In April 2012 the committee membership increased from five to six members with the additional appointment of Mr Sean Sullivan as departmental member.

Seven ordinary meetings were held during 2011–12. Observers at the committee meetings include the First Assistant Secretary of Policy and Communications Division, the Chief Operating Officer, Assistant Secretary Governance and Legal Branch, Chief Financial Officer, representatives of the Australian National Audit Office (ANAO) and the internal audit service provider.

Table 2: Departmental Audit Committee membership and meeting attendance 2011–12

Member Role No. of meetings member is eligible to attend

No. of meetings attended

Elizabeth Montano Independent Chair 7 7

Evelyn Bosak Independent member 7 6

Geoff Knuckey Independent member 7 6

Michael Roche Independent member 3 2

David Parker Member (Deputy Chair)

3 3

Sean Sullivan Member 2 1

Mark Tucker Previous member

Member (Deputy Chair)

4 4

Risk management

In 2011–12 the department continued to build on the outcomes of the Enterprise Risk Management Improvement project by further refining and enhancing the risk management toolkit and providing specialist risk management support to all divisions. New initiatives and enhancements included:

provision of a mentoring function to assist in identifying and assessing risk through facilitated workshops inclusion of specialist risk management staff on project teams for major projects and in the development of

programs provision of a timely response to dealing with any deficiencies in risk management processes identified

through the internal audit program.

Oversight arrangements continue to evolve, with increased visibility over identified risk being provided to division and branch heads for ongoing mitigation and monitoring. Further development of the risk managers’ network will continue the progression towards embedding risk management practices at all levels across the department.

Fraud control

In 2011–12 the department updated its fraud control plan with an increased emphasis on conducting fraud risk assessments for projects, programs and business-as-usual activities. In recognising the importance of ensuring the incidence of fraud is minimised and fraud prevention capability is strengthened, the department has implemented several initiatives. As a result, a new fraud awareness program is currently under development, new tools are being introduced with clearly articulated fraud indicators and improved fraud risk assessment guidelines are being implemented.

The department provides guidance for staff in the identification of suspected fraud and, where identified, takes action or refers matters to appropriate enforcement agencies. During 2011–12 there were two cases of suspected fraud identified.

In accordance with the Commonwealth Fraud Control Guidelines, this agency has prepared fraud risk assessments and fraud control plans, it has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures to meet its needs and has taken all reasonable measures to minimise the incidence of fraud and to investigate and recover the proceeds of fraud.

Project management

In 2012 the department focused its efforts on broadening the application of project management methodology and appropriate implementation strategies across the portfolio and modernising the project management framework.

The department brought together project management expertise from within the organisation to form the Portfolio Project Management Office. The office provides specialist support services across the portfolio, by:

providing sound strategic project management guidance and support to ensure that departmental programs and projects are managed professionally and achieve their intended outcomes on time, on budget and to standard through individual program and project performance improvement

developing and maintaining project governance frameworks for program and project management, including setting roles and responsibilities and providing guidance for Project Outcome Boards

enhancing and maintaining an intranet site, systems, databases and basic alignment with project management software

coordinating, developing and delivering training across the organisation to meet capability requirements for each of the key roles in project and program management and delivery

providing and coordinating program and project management and technical expertise to support delivery by developing and maintaining a team of high-quality external providers

conducting regular program and project health checks and providing reporting guidance.

Business Continuity Plan

The department’s Business Continuity Plan describes the arrangements to be used to ensure continuity of key services after a major, unexpected and disruptive incident. It details the management structure, staff roles, responsibilities and actions that would be implemented in the event of a major incident.

The department developed a revised Business Continuity Plan, which captures information and provides an effective response for all critical functions. Appropriate maintenance, training and testing regimes have been implemented and are ongoing.

Certificate of Compliance

The department’s financial control framework includes the Certificate of Compliance. The department undertakes a self-assessment process three times a year. Results are provided to management and the Departmental Audit Committee. The department took several steps to improve its performance, including:

an update of the financial delegations further development of the finance portal to assist staff to more easily locate guidance material further enhancements to the finance practice manual rollout of new online finance training to support self-paced learning overhaul of the Chief Executive Instructions to align with the model set of Instructions issued by the

Department of Finance and Deregulation continuous risk-based substantive testing of financial transactions.

External scrutiny

Courts and tribunals

There were no significant judicial or administrative decisions directly affecting the department’s operations.

Commonwealth Ombudsman

The Commonwealth Ombudsman did not issue any formal reports about the operation of the department.

The department received four notifications of investigation in relation to particular programs. Of the four matters, one has been finalised on the basis of the Ombudsman’s determination that no further investigation was warranted, and the remaining three matters are yet to be finalised.

Auditor-General reports

The Australian National Audit Office (ANAO) released two performance audits specific to the department during 2011–12.

Audit Report No. 14 2011–12 Indigenous Protected Areas

The National Reserve System (NRS) is Australia’s terrestrial network of protected areas. The Indigenous Protected Areas (IPA) program was implemented in 1997 as a vehicle to support Indigenous land management and to increase the size of the NRS and improve its comprehensiveness, adequacy and representativeness.

The ANAO found that overall the program was effective in increasing land contributed to the NRS, and particularly successful in bringing Indigenous land into the NRS through its effective model of consultative engagement with Indigenous landowners. The department noted the finding that ongoing funding is needed to support the management of IPAs and is working to develop options for future funding.

Audit Report No. 38 2011–12 Administration of the Private Irrigation Infrastructure Operators Program in New South Wales

Under the Private Irrigation Infrastructure Operators Program in New South Wales, the Australian Government provides funding to NSW private irrigation infrastructure operators in the Murray–Darling Basin. The funds are to acquire water entitlements resulting from water savings from eligible projects to improve the efficiency of water use. The department applies a grants-based framework to administer the program and help secure a sustainable future for irrigation communities.

The ANAO assessed the effectiveness of the department’s administration of the program. The department is working to implement the three recommendations made by the ANAO.

Parliamentary committee reports

Environment and Communication References Committee—The koala: saving our national icon

This report was tabled in September 2011 following the Senate Inquiry into the status, health and sustainability of Australia’s koala population. Information gathered during the inquiry for the report was taken into consideration by the Threatened Species Scientific Committee in its assessment of the status of the koala under the Environment Protection and Biodiversity Conservation Act 1999.

Joint Standing Committee on Treaties

Treaties tabled on 7 February 2012–Amendments to Appendices I and II to the Convention on the Conservation of Migratory Species of Wild Animals (Bonn, 23 June 1979) at Bergen on 25 November 2011.

As is the case for all treaties, it is a requirement that when any amendments are made to the Convention on the Conservation of Migratory Species of Wild Animals (CMS) Appendices, a National Interest Analysis must be tabled in parliament for the scrutiny of the Joint Standing Committee on Treaties. A National Interest Analysis was tabled in parliament on 7 February 2012 which outlined obligations arising from the inclusion of the eastern curlew (Numenius madagascariensis) and the giant manta ray (Manta birostris) on the appendices to the CMS. Departmental officers appeared at a public hearing on the matter on 1 June 2012 and the committee’s report was tabled in parliament on 21 June 2012. The committee concluded that the National Interest Analysis should be supported with binding action.

Australia’s Biodiversity Conservation Strategy 2010–30

On 28 May 2012, the House of Representatives Standing Committee on Climate Change, Environment and the Arts tabled its first interim report Case studies on biodiversity conservation: Volume 1. The committee reserved its right to provide recommendations in the final report.

Joint Standing Committee on Treaties—Measure 1 (2005) Annex VI to the Protocol on Environmental Protection to the Antarctic Treaty: Measure 4 (2004) Insurance and contingency planning for tourism and non-governmental activities in the Antarctic Treaty area; Liability arising from environmental emergencies; and Measure 15 (2009) Landing of persons from passenger vessels in the Antarctic Treaty area. Report 120 of 12 October 2011.

The department attended a hearing of the Joint Standing Committee on Treaties on 22 August 2011. The hearing discussed three measures adopted under Article IX of the Antarctic Treaty and Article 9 of the Protocol on Environmental Protection to the Antarctic Treaty. The committee recommended that binding treaty action be taken in respect of each measure.

House Standing Committee on Climate Change, Environment and the Arts—Antarctic Treaty (Environment Protection) Amendment Bill 2011.

On 24 November 2011, the House Selection Committee referred the Antarctic Treaty (Environment Protection) Amendment Bill 2011 to the Senate Standing Committee on Climate Change, Environment and the Arts for an advisory report. During its inquiry the committee received a private briefing from the department to discuss aspects of the bill. A statement was made on behalf of the committee to the House of Representatives on 16 February 2012 discharging the committee’s requirement to make a report.

Senate Standing Committee for the Scrutiny of Bills—Antarctic Treaty (Environment Protection) Amendment Bill 2011. Alert Digest No 1 of 2012.

The Bill amended the Antarctic Treaty (Environment Protection) Act 1980 to implement Australia’s international obligations under three measures adopted under Article IX of the Antarctic Treaty and Article 9 of the Protocol on Environmental Protection to the Antarctic Treaty. The committee’s report (Alert Digest No. 1 of 2012) noted and provided comment on items within the Bill concerning commencement, the reversal of onus of proof, and standing appropriations. No follow-up action was requested.

Joint Standing Committee on Treaties—Amendment to Annex 1 of the Agreement on the Conservation of Albatrosses and Petrels

On 1 June 2012, the Joint Standing Committee on Treaties considered a proposal to amend Annex 1 of the Agreement on the Conservation of Albatrosses and Petrels to add the northern hemisphere petrel species, the Balearic shearwater (Puffinus mauretanicus) to the list of species covered by the Agreement. The committee agreed to deal with the amendment as a minor treaty action.

Joint Standing Committee on the National Capital and External Territories—Public Hearing on the Advancement of Australia’s Interests in Antarctica

On 27 June 2012 the department gave evidence to this Committee on various issues relating to the achievement of Outcome 3, including on Antarctic operations, science and tourism.

Inquiry into the provisions of the Water Act 2007

The Senate Legal and Constitutional Affairs References Committee Inquiry report, A Balancing Act: Provisions of the Water Act 2007, was tabled on 10 June 2011. The department coordinated the government’s response, which was tabled on 27 March 2012.

The Senate Standing Committee on Environment and Communications—Legislation Committee

The National Water Commission Amendment Bill 2012 (the Bill) was referred to the Senate Environment and Communications Legislation Committee on the recommendation of the Selection of Bills Committee in its report of 22 March 2012. The Committee’s Inquiry report on the National Water Commission Amendment Bill 2012 was tabled on 1 May 2012. The Committee recommended the Bill be passed before 30 June 2012. The Bill was passed and given royal assent on 27 June 2012.

The Senate Environment and Communications Legislation Committee

Environment Protection and Biodiversity Conservation Amendment (Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development) Bill 2012 [Provisions]

The Bill amended the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) to establish an Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development as a statutory authority to provide federal, state and territory governments with scientific advice on coal seam gas and large

coalmining developments which may have significant impacts on water resources. The Committee’s report was tabled on 20 June 2012.

Senate Standing Committees on Rural and Regional Affairs and Transport

Environment Protection and Biodiversity Conservation Amendment (Protecting Australia’s Water Resources) Bill 2011

The Bill amended the Environment Protection and Biodiversity Conservation Act 1999 to provide that mining operations require Commonwealth approval if they will have, or are likely to have, significant impact on the quality, structural integrity or hydraulic balance of a water resource; and impose penalties. The Committee’s report was tabled on 27February2012.

Senate Rural Affairs and Transport References Committee Management of the Murray–Darling Basin Interim report: the impact of mining coal seam gas on the management of the Murray–Darling Basin

This committee’s inquiry into the coal seam gas industry is a subset of its broader inquiry into the Murray–Darling Basin and its capacity to maintain its position as a significant food producer in the context of reduced availability of water for agriculture, both as a result of water management decisions and, potentially, as a consequence of changing weather patterns resulting from climate change. The Committee’s Interim Report was tabled on 30 November 2011.

House of Representatives Committee on Regional Australia Inquiry into the impact of the Murray–Darling Basin Plan in Regional Australia

The Committee’s report, titled Of drought and flooding rains, was tabled on 2 June 2011.

The department coordinated the government’s response, which was tabled on 24 November 2011.

Inquiry into the Performance of the Department of Parliamentary Services

On 1 July 2011 the Finance and Public Administration Legislative Committee invited the Australian Heritage Council (the council) to provide a written submission to the Senate Inquiry into the Performance of the Department of Parliamentary Services (DPS). The invitation referenced item (b) policies and practices followed by DPS for the management of the Heritage Values of Parliament House and its contents.

In its submission, provided on 12 August 2011, the council commented on delays in the finalisation of DPS’s Heritage Strategy under the EPBC Act. The department also met with DPS officers to discuss progress with the strategy. The council is now satisfied with DPS’s progress in relation to the heritage protection of Parliament House, including the development of a Heritage Management Framework as revisions to its draft Heritage Strategy, previously submitted in 2008. DPS also established a Heritage Advisory Board and invited a departmental officer as an adviser to the Board.

Joint Standing Committee on the National Capital and External Territories

On 17 August 2011 the Minister for Regional Australia, Regional Development and Local Government, the Hon. Simon Crean MP, asked the Joint Standing Committee on the National Capital and External Territories to inquire into and report on the administration of the National Memorials Ordinance 1928. This Ordinance covers the building of memorials of national significance in Canberra. In its submission, the department recommended giving explicit reference in the ordinance to the possible need for approvals to be obtained under the EPBC Act.

On 23 November 2011 the Committee tabled its report, titled Etched in Stone, which recommended, among other matters, that the Ordinance be repealed and replaced and that new heritage impact processes be incorporated into the principal features of the proposed new legislation.

Hawke Review of the National Capital Authority

The department provided input to the Australian government’s response to Dr Allan Hawke’s review into the future role of the National Capital Authority in February 2012. Two recommendations related to heritage matters.

The Australian Government response to the Hawke Review was released in May 2012.

Environmental sustainability This section is presented in accordance with the requirements of section 516A of the Environment Protection and Biodiversity Act 1999 (EPBC Act).

Section 516A requires government departments to report on:

how their activities accord with the principles of ecologically sustainable development (subsection (6)(a)) how their outcomes, specified in relevant Appropriation Acts, contributed to ecologically sustainable

development (subsection (6)(b)) the environmental impacts of their operations during the year, and measures taken to minimise those impacts

(subsections (6)(c), (d) and (e).

How the department applies the principles

The department administers the EPBC Act, which promotes ecologically sustainable development through the conservation and ecologically sustainable use of natural resources.

Examples of how the department applies the principles of ecologically sustainable development are summarised in the following table. More details on specific programs are contained in the chapters covering Outcomes 1–5 of this annual report.

Contribution of outcomes

The department is one of the leading Australian Government agencies for developing and implementing national policy, programs and legislation to protect and conserve the natural environment. A key function of the department is to promote and support ecologically sustainable development.

The department recently reviewed and updated its guidelines for Australian Government agencies to report on how they contribute to ecologically sustainable development. The guidelines are available from the department’s internet site at <www.environment.gov.au/epbc/publications/reporting-guidelines.html>.

The department’s outcomes contribute to ecologically sustainable development as follows:

Outcome 1: conserving and protecting Australia’s terrestrial and marine biodiversity and ecosystems contributes to the conservation of biological diversity and ecological integrity, thereby helping to maintain the ecological processes on which life depends.

Outcome 2: promoting waste reduction and regulating hazardous substances, wastes, pollutants, ozone-depleting substances and synthetic greenhouse gases helps to prevent and minimise harm to the environment as a result of human activities.

Outcome 3: Australia’s Antarctic interests include a strong focus on protecting the Antarctic environment and managing the sustainable use of marine resources.

Outcome 4: Australia’s water resources are managed and used sustainably and efficiently.

Outcome 5: Australia’s cultural and heritage values are protected from activities that impact on the environment.

Corporate Outcome: the department’s policies and use of technology actively consider and implement strategies to minimise harm to the environment.

Table 3: How the department applies the principles of ecologically sustainable development

Principles Activities

Integration principle: decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations.

Sustainability policy: the department is responsible for policy advice and implementation to achieve the government’s strategic sustainability objectives. Of particular note is the Sustainable Population Strategy and associated measures, which explicitly address present and future community wellbeing considerations across environmental, social and economic dimensions of sustainability. Integrated natural resource management: the department develops and invests in natural resource management plans and other strategies to maintain ecosystems. These include the regional component of the Caring for our Country initiative and bioregional marine plans. These plans integrate long-term and short-term economic, environmental, social and equitable considerations. Integrated reporting: The department publishes a report on the state of the environment. The next report is being developed for 2016.

Precautionary principle: if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.

Environmental impact assessments: the department applies the precautionary principle to prevent serious environmental damage when assessing the possible environmental impacts of proposed actions. Assessments must often be made in the absence of full scientific certainty, most notably assessments under the Environment Protection and Biodiversity Act 1999, and through chemical and gene technology assessment schemes.

Intergenerational principle: the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced, for the benefit of future generations.

Pollution prevention: the department applies laws and National Environment Protection Measures to prevent environmentally harmful substances entering the environment. Laws include the Environment Protection (Sea Dumping) Act 1981, the Hazardous Waste (Regulation of Exports and Imports) Act 1989, the Fuel Quality Standards Act 2000 and the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.

Whole-of-government policy development: the department seeks to ensure that environmental protection is appropriately considered in the development of other Australian Government policies, including major energy and water reforms.

Community capacity building: the department administers the Australian Government’s major natural resource management programs that have an environmental focus, including the Caring for our Country program. These programs increase the capacity of Australians to conserve ecosystems for future generations.

Protecting cultural and heritage values: the Protection of Movable Cultural Heritage Act 1986 protects Australia’s heritage of movable cultural objects and supports the protection by foreign countries of their heritage of movable cultural objects. Heritage values are considered where an action by the department may have an impact.

Biodiversity principle: the conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making.

Biodiversity conservation: the department applies laws for the conservation of biodiversity to protect wildlife and heritage places with environmental values, including the Environment Protection and Biodiversity Act 1999, and, through the Caring for our Country program, marine protected areas, terrestrial parks and reserves.

Principles Activities

Valuation principle: improved valuation, pricing and incentive mechanisms should be promoted.

Conservation incentives: the department promotes incentives for protecting wildlife and habitats on private land through covenants. It supports fishing industry adjustment processes to reduce pressures on the marine environment.

Waste reduction incentives: the department provides incentives for more efficient use of resources. This includes markets for waste products, such as used lubricating oils, and water efficiency labelling. It also contributes to reducing packaging waste, as a signatory to the National Packaging Covenant.

Environmental performanceThe department continued its commitment to ensuring that our corporate operations reflect environmental best practice in a public service agency for urban office environments and remote/regional areas that the department is responsible for managing.

The department did this by:

fostering a culture of environmental responsibility at work, including mandatory online environmental training for new staff and online Green at Work information for all staff

providing environmental training for regional and remote area field staff, scientists and support staff in sound environmental management practices in Antarctica, World Heritage Areas, national parks and reserves

promoting efficient use of energy, water, paper and other natural resources preventing or minimising pollution, waste-to-landfill and greenhouse gas emissions favouring the purchase of more sustainable goods and services in line with the Commonwealth Procurement

Guidelines ‘whole-of-life costing’ requirements fulfilling our local, national and international legal and other obligations relating to environmental

management developing and implementing environmental management plans that identify and address significant

environmental risks and opportunities for environmental improvement at all sites monitoring and reporting on our environmental performance, both internally and externally.

Due to the diverse nature of the department’s operations across Australia, the Southern Ocean and its territories, day-to-day operational environmental performance is managed at a local level however, where relevant, whole of department policies, initiatives and reporting are coordinated. These include:

enhanced sustainability reporting and benchmarking by combining environmental reporting data from the three main office locations of the department

information and communications technology improvements to reduce overall energy consumption for the department

participation by a number of state/territory offices in Earth Hour 2012 a coordinated business clean up day across a range of sites and states in support of Clean Up Australia Day.

The local area management approach is also supported by a number of local environmental performance committees, environmental policies, and environmental performance action plans, including climate change plans for most of the national parks and the botanic gardens and action plans with targets for the Australian Antarctic Division and the main Canberra offices.

The department has Environmental Management Systems (EMS) for the operations of our main Canberra offices and the Australian Antarctic Division (AAD). Both Environmental Management Systems were externally audited this financial year and the department succeeded in obtaining continued three-year certification to the international standard for environmental management systems (ISO14001:2004) for both the AAD EMS and the Canberra EMS.

The department completed an ambitious Information and Communications Technology (ICT) Refresh project in March 2012. This refresh included the replacement of its entire fleet of aged and inefficient desktop computers. Seventy-three

per cent of the old computers were replaced with very low footprint thin client devices, with the remainder being replaced by desktop PCs with considerably reduced power consumption. It is anticipated that the percentage of services delivered through the thin-client devices will continue to increase over time.

The refresh also replaced the printer and photocopier fleet with considerably fewer energy efficient multi-function devices with swipe-to-print technology. The benefits of this investment have begun to be realised in this year’s energy and paper consumption results with many offices showing a decline in total energy use and paper use. The department’s vision and cutting edge work resulted in the receipt of an international IT Ecosolutions Award from HP Australia for the Asia-Pacific region for the significant improvements in our environmental footprint.

The department has an active Environmental Contact Officer Network (ECONet). These staff volunteers in conjunction with the local environmental performance managers/teams continue to provide leadership, ideas and initiatives such as tours of recycling facilities and tree planting to support and promote a culture of environmental responsibility.

The department is continuing to improve our sustainability reporting and is participating in an Australian Government sustainability reporting pilot initiative using the Global Reporting Initiative (GRI) framework as a base for reporting. One of the key aims of this initiative is to improve the comparability of government agencies’ reporting about organisational sustainability. As a result, new indicators have been used in this year’s report that are not directly comparable with previous years’ annual reports.

Table 3 presents a comprehensive overview of the environmental impacts resulting from the department’s office based operations. This includes the activities of around 1614 staff in our three main offices in Canberra, 323 staff in the Australian Antarctic Division offices in Kingston, Tasmania and 58 staff in the Supervising Scientist Division and Parks Australia offices in Darwin and Jabiru. The department undertakes considerable work in non-office based environments. Environmental impacts from these operations are reported separately later in this chapter.

Table 4: Summary of environmental indicators

Indicator 2011–12 result 2010–11 result % change

Office/Building Energy Use

Total office tenant light and power energy consumption 3 633 866 kWh 3 756 771 kWh -3%

Total office tenant light and power energy consumption 13 081 917 MJ 13 524 375 MJ -3%

Office tenant light and power energy use per person 6555 MJ/FTE 7345 MJ/FTE -11%

Office tenant light and power per square metre 272 MJ/m2 281 MJ/m2 -3%

Total base building energy consumption 4 026 437 MJ 4 002 512 MJ 1%

Base building energy use per square metre 384 MJ/m2 382 MJ/m2 1%

Greenhouse gas emissions attributed to office tenant light and power and base/central building energy use

443 t CO2-e 447 t CO2-e -1%

Greenpower purchased 2 515 411 kWh 2 644 962 kWh -5%

Vehicle fleet

Total number of fleet vehicles 35.5 40.5 -12%

Average Green Vehicle Guide (GVG) rating of fleet (score out of 20) 12.1 11.4 6%

Total fuel purchased 61.8 KL 56.7 KL 9%

Total distance travelled 639 666 km 635 327 km 1%

Average fuel consumption of fleet vehicles 9.7 L/100km 8.9 L/100km 8%

Total direct greenhouse emissions of fleet 60 t CO2-e 63.2 t CO2-e -5%

Greenhouse gas emissions

Total greenhouse gas emissions (after offsets) 503 t CO2-e 510 t CO2-e -1%

Total greenhouse gas emissions per person (after offsets) 0.25 t CO2-e 0.28 t CO2-e -9%


/FTE /FTE

Air travel

Total number of flights (legs of travel) 20,026 18,851 6%

Total distance of flights 23 819 232 km 22 154 217 km 8%

Potable water consumption

Total potable water use 21 367 kL 21 667 kL -1%

Potable water use per person 11 kL/FTE 12 kL/FTE -9%

Potable office water use per square metre 0.5 kL/ m2 0.5 kL/ m2 -1%

Resource efficiency and waste

Office paper purchased per person 10.4 reams/FTE 12.4 reams/FTE -17%

Percentage of office paper purchased with recycled content 100% 100% 0%

Office paper recycled 123 t 124 t -1%

Total waste produced 537 t 502 t 7%

Total waste produced per person 269 kg/FTE 273 kg/FTE -1%

Percentage of waste diverted from landfill 51% 52% -3%

Notes: Total greenhouse gas emissions are net emissions associated with fuel use in the department’s leased vehicle fleet and electricity use in offices and includes all offsets and GreenPower purchased. Greenhouse gas emissions (excluding those from commercial flights) were estimated using methodology and emission factors sourced from the July 2012 version of the National Greenhouse Accounts Factors workbook published by the Department of Climate Change and Energy Efficiency. Methodology and emission factors for commercial flights were sourced from Worksheet 3–Calculating GHG Emissions from Flights published by EPA Victoria. An updated Radiative Forcing Index (RFI) of 1.9 was used and was sourced from the 2011 Guidelines to DEFRA/DECC’s GHG Conversion Factors for Company Reporting published by the UK Departments of Energy and Climate Change (DECC) and Environment, Food and Rural Affairs (DEFRA).

Canberra offices

Sites and staffing

The department’s Canberra office operations included major office tenancies in the John Gorton Building in Parkes and 33 Allara Street in Civic, an office sub-lease at Lovett Tower in Woden and a warehouse in Queanbeyan. The total number of staff in these offices increased by 11 per cent from 2010–11.

Environmental management framework

the department’s Canberra office Environmental Management System (EMS) provides a framework and methodical approach to planning, implementing and reviewing efforts to reduce our negative environmental impacts. The Canberra office EMS was successfully recertified to the international standard for environmental management systems (ISO14001:2004) in May 2012.

During 2011–12, the department continued to improve the environmental management of the office operations in the Canberra offices and succeeded in meeting a number of long standing environmental performance targets. The Canberra Environmental Performance Committee set new ambitious targets for the reduction of office electricity and paper use, greenhouse gas emissions associated with business travel and waste sent to landfill. New targets were also set to improve environmental outcomes of procurement processes.

Energy

The whole-of-department ICT Refresh project, completed in March 2012, contributed to a dramatic 14 per cent reduction in office electricity use per person. Office electricity use in 2011–2012 was 5610 megajoules per person, well below the government target of 7 500 megajoules per person per year. The department continued to purchase 100 per cent GreenPower for its sites in Canberra, resulting in an offset of 2862 tonnes CO2-e in 2011–12.

The distances travelled by departmental staff in fleet cars and by commercial flights increased by five to ten per cent, commensurate with increased staffing levels. The Canberra pool car fleet continued to achieve great fuel efficiency due to the large proportion of fuel-efficient hybrid and electric vehicles. Since 2002, all greenhouse gas emissions from fleet fuel use have been offset through GreenFleet. One hundred and two tonnes CO2-e were offset in 2011–2012. The department also continued to provide a fleet of bicycles for staff to use in Canberra.

Resource efficiency & waste

To achieve ambitious targets set for waste reduction, our Canberra offices participated in the ACTSmart Office Recycling Program. Improved waste management practices and extensive staff engagement led to a significant reduction (24 per cent per person) in the waste sent to landfill. Eighty per cent of all office waste was diverted from landfill in 2011–2012.

The department continued to purchase 100 per cent post-consumer recycled copy paper. Swipe-to-print technology has resulted in a considerable reduction (18 per cent per person) in the amount of copy paper ordered from 2010–11 to 2011–2012

Water

The Canberra offices used 522 kilolitres less potable water in 2011–12 from 2010–11. This represents a significant reduction of 12 per cent water use per person. This may be due to the installation of a new smart water meter in the main office which flags abnormal water use to the water suppliers who notify the building owners immediately enabling them to address any water leaks. The department continues to implement other water saving measures in the John Gorton Building including grey water recycling and the use of non-potable water for the water feature.

Table 5: Summary of environmental indicators–Canberra offices


Office/building energy use

Total office tenant light and power 9 055 480 MJ 9 521 863 MJ -5%

Tenant light and power per person 5610 MJ/FTE 6524 MJ/FTE -14%

Tenant light and power per square metre 404 MJ/m2 427 MJ/m2 -5%

Total base building energy use n/a n/a n/a

Base building energy use by area n/a n/a n/a

Building energy use (electricity and gas):

Laboratories n/a n/a n/a

Public buildings n/a n/a n/a

Accommodation n/a n/a n/a

Warehouse 52 005 MJ 128 873 MJ -60%

Greenpower purchased as a proportion of total electricity purchased

100% 100% 0%

Renewable energy generated 0 MJ 0 MJ 0%

Transport


Total number of fleet vehicles by location:

Canberra pool cars 10 15 -33%

Other fleet cars 10 10 0%

Total number of operational vehicles n/a n/a n/a

Average Green Vehicle Guide (GVG) rating of fleet vehicles by location (score out of 20):

Canberra pool cars 17.0 17.0 0%

Other fleet cars 9.9 10.6 -7%

Average fuel consumption of fleet vehicles by location:

Canberra pool cars Non-canberra fleet cars

6.0 L/100km 10.6 L/100km

6.8 L/100km 10.4 L/100km

-12% 2%

Fleet vehicle fuel consumption by type:

Unleaded petrol 8297 L 6799 L 22%

E10 petrol 6758 L 6013 L 12%

Diesel 23 993 L 20 430 L 17%

LPG 0 L 498 L -100%

Total distance travelled by vehicle fleet 404 969 km 366 870 km 10%

Total number of commercial flights 16,054 15,339 5%

Total distance travelled by commercial flights 18 351 971 km 16 838 491 km 9%


Greenhouse gas emissions (after offsets) attributed to office tenant light and power

0 t CO2-e 0 t CO2-e 0%

Greenhouse gas emissions attributed to base building energy use n/a n/a n/a

Greenhouse gas emissions (after offsets)attributed to energy used by:




Other–warehouse 0 t CO2-e 0 t CO2-e 0%

Greenhouse gas emissions (after offsets) attributed to fleet vehicles

0 t CO2-e 0 t CO2-e 0%

Greenhouse gas emissions attributed to commercial flights 4138 t CO2-e 3812 t CO2-e 9%

Greenhouse gas emissions attributed to operational aircraft use n/a n/a n/a

Total greenhouse gas emissions after offsets (not including commercial flights and waste)

0 t CO2-e 0 t CO2-e 0%

Total greenhouse gas emissions after offsets (not including commercial flights and waste) per person

0 t CO2-e /FTE 0 t CO2-e /FTE 0%

Water consumption

Total metered potable office water use 17 991 kL 18 514 kL -3%

Total metered potable office water use per person 11 kL/FTE 13 kL/FTE -12%

Total metered potable office water use by area 0.476 kL/ m2 0.483 kL/ m2 -1%



Internal copy paper per person 10.9 reams/FTE 13.4 reams/FTE -18%

Percentage of paper purchased with post consumer recycled content

100% 100% 0%

Office paper recycled 111.7 t 119 t -6%

Other waste sent to recycling facilities (excluding office paper):

Co-mingled office waste 34.1 t 35.3 t -3%

Organic waste 23.7 t 30 t -21%

Waste sent to landfill 44.7 t 53.3 t -16%

Total waste production 228.5 t 250.0 t -9%

Total waste sent to landfill per person 27.7 kg/FTE 36.5 kg/FTE -24%

Total waste recycled per person 113.9 kg/FTE 134.8 kg/FTE -16%

Proportion of waste diverted from landfill 80% 79% 1%

Darwin/Jabiru

Sites and staffing

The Darwin/Jabiru operation covers two premises—the Darwin office and the Jabiru Field Station. Both premises accommodate staff from the Supervising Scientist Division Darwin/Jabiru and Parks Australia Division. The Jabiru facility is also shared with a commercial tenant. It should be noted that calculations reported per person for electricity and water use at the Jabiru site will be inflated as the electricity and water totals are for both staff and commercial tenants but only departmental staff numbers have been used to calculate the per person figures. Staffing levels have been maintained for the Supervising Scientist Division Darwin/Jabiru and decreased slightly for Parks Australia Division.

Supervising Scientist Division SSD buildings are used for office and laboratory operations as well as storage of plant and equipment.


Darwin/Jabiru contributes to the department’s sustainability objectives through a range of measures aimed at continuously improving the environmental performance of business operations and minimising any associated environmental impacts.

The department is exploring the possibility of developing an Environmental Management System for Darwin/Jabiru in the future. In the interim, Darwin/Jabiru operations are conducted in a manner consistent with the department’s aim to minimise the ecological footprint on the environment. This involves a range of strategies including complying with legal and other agreements, actively promoting sustainable work practices, preventing pollution as a result of work practices, focusing on continuous improvement, public reporting of environmental performance as part of the department’s annual report and procurement and use of sustainable goods and services.

Energy

During 2011–12, total power consumption for all sites combined decreased again by seven per cent as per the previous year. With an aim to more effectively manage electricity usage, major project work was commenced to modify the Darwin laboratory building air-conditioning system. These works are due to be finalised during August 2012 and benefits from the more energy efficient system should see a further decrease in Darwin electricity usage next year. Continued routine maintenance of electrical items including testing and tagging of electrical items, and replacing faulty and aged equipment has also assisted with the more efficient use of electricity. Due to Jabiru’s remote location, there

are often power blackouts and a requirement to generate electricity using the generator during these times. Accordingly, there are fluctuations every year in electricity bought and electricity generated. It is important to note that both sites do not have separate metering so individual components of the electricity reporting are estimates only, based on area.

Vehicle mileage decreased by five per cent from 170 568 kilometres to 162 655 kilometres, resulting in an overall decrease in fuel use of five per cent. Although there was an increase of one per cent in diesel use, it was balanced out by a significant decrease of 41 per cent in the use of unleaded petrol (ULP). As fleet vehicle leases have expired, ULP vehicles have been replaced with more fuel-efficient diesel vehicles. As at 30 June 2012, SSD and POT have a fleet of diesel vehicles used primarily for travel to and from Darwin and Jabiru and for off-road remote fieldwork activities. Fleet vehicles have an average GVG (Green Vehicle Guide) rating of 8.6 and use an average of 12.7 litres per 100 km.

The continued reduction of distances travelled has been achieved through initiatives such as car pooling and the use of video conferencing facilities instead of driving or flying long distances to attend meetings.

Total greenhouse gas emissions for the Darwin and Jabiru Field Station in 2011–12 were 686 tonnes CO2-e, a decrease of seven per cent compared with 2010–11. This lower emissions figure includes reductions of 11 per cent in transport fuel and seven per cent in electricity.

Resource efficiency & waste

The waste figures reported are for Darwin only as the Jabiru Field Station does not collect data on waste, although it continues to sort waste to be recycled at the local waste repository. There has been no change in total waste between 2010–11 and 2011–12. There was a four per cent (0.5 tonne) increase in landfill waste, a 14 per cent decrease in paper product waste, and four per cent decrease in co-mingled waste (plastic/glass only) sent for recycling. Changes to waste collection and disposal at the Darwin facility are also reflected in reduction in production of greenhouse gas emissions. Darwin continues to operate a worm farm for recycling organic food waste.

All paper purchased is a partially recycled product. As with other areas in the department, the move to swipe-to-print technology has resulted in a decrease in paper purchased compared with 2010–11; for SSD it is an 11 per cent reduction. The organisation provides copies of all publications on the Supervising Scientist Division’s website, which has reduced the need to print publications for stakeholders.

Water

Water consumption at the Darwin facility increased by 39 per cent during 2011–2012—from 2–022 kL recorded use in 2010–11 to 3065 kL. During the year, a new water meter was installed to monitor water usage in the lab area buildings, so this in addition to construction works in the area may have contributed to the increase in water usage, although at this stage further investigation into the cause of the increase is required.

Water consumption at the Jabiru Field Station decreased by 19 per cent—from 10 111 kL in 2010–11 to 8217 kL in 2011–12. It is estimated that SSD is responsible for about 30 per cent of total water used at the Jabiru facility by staff, aquaculture activities and grounds maintenance. It is estimated that 70 per cent of water is used by a local Indigenous business that operates a native plant nursery on the site.

Table 6: Summary of environmental indicators–Darwin/Jabiru

Indicator 2011–12 result 2010–11 result

% change


Total office tenant light and power 727 167 MJ 782 330 MJ -7%

Tenant light and power per person 11 161MJ/FTE 11 488 MJ/FTE

-3%


Total base building energy use 727 167 MJ 782 330 MJ -7%

Base building energy use by area 399 MJ/m2 429 MJ/m2 -7%


% change

Building energy use (electricity and gas):

Laboratories 915 042 MJ 984 457 MJ -7%



Other—warehouse 761 870 MJ 819 666 MJ -7%

Greenpower purchased as a proportion of total electricity purchased 0% 0% 0%


Transport

Total number of fleet vehicles 8.5 8.5 0%

Total number of operational vehicles n/a n/a n/a

Average Green Vehicle Guide (GVG) rating of fleet vehicles 8.6 8.3 4%

Average fuel consumption of fleet vehicles 12.7 L/100km 14.2 L/100km -11%


Unleaded petrol 1284 L 2184 L -41%

E10 petrol n/a n/a n/a

Diesel 13 642 L 13 547 L 1%

LPG n/a n/a n/a

Total distance travelled by vehicle fleet 162 655 km 170 568 km -5%

Total number of commercial flights 224 239 -6%

Total distance travelled by commercial flights 517 846 km 592 597 km -13%


Greenhouse gas emissions attributed to office tenant light and power 150t 161t -7%

Greenhouse gas emissions attributed to base building energy use 150t 161t -7%

Greenhouse gas emissions attributed to energy used by:

Laboratories 189 t CO2-e 203 t CO2-e -7%



Other—warehouse 157 t CO2-e 169 t CO2-e -7%

Greenhouse gas emissions attributed to fleet vehicles 40 t CO2-e 45 t CO2-e -11%

Greenhouse gas emissions attributed to commercial flights 110 t CO2-e 125 t CO2-e -12%

Greenhouse gas emissions attributed to operational aircraft use n/a n/a n/a

Total greenhouse gas emissions (not including commercial flights and waste)

686 t CO2-e 739 t CO2-e -7%

Total greenhouse gas emissions (not including commercial flights and waste) per person

11.7 t CO2-e 12.1 t CO2-e -3%

Water consumption

Total metered potable water use (office, lab and irrigation)

Darwin 3065 kL 2202 kL 39%

Jabiru 8217 kL 10 111 kL -19%

Total metered potable water use per person (office, lab and irrigation) n/a n/a n/a


% change

Total metered potable water use by area n/a n/a n/a


Internal copy paper per person 6.40 reams/FTE

7.17 reams/FTE

-11%

Percentage of paper purchased with post consumer recycled content 100% 100% 0%

Office paper recycled 0.48 t 0.56 t -14%


Co-mingled office waste 10.74 t 11.16 t -4.8%

Organic waste Not measured Not measured Not measured

Waste sent to landfill 12.48 t 12.00 t 4%

Total waste production 23.70 t 23.70 t 0%

Total waste sent to landfill per person 213 kg/FTE 197 kg/FTE 8%

Total waste recycled per person 207 kg/FTE 195 kg/FTE 6%

Proportion of waste diverted from landfill 47% 49% -4%

Parks Australia

Sites and staffing

This Parks Australia report covers the activities of:

Kakadu National Park Uluru-Kata Tjuta National Park Christmas Island National Park Pulu Keeling National Park Booderee National Park Norfolk Island National Park and Botanic Garden Australian National Botanic Gardens.

The environmental performance for the Canberra-based staff is covered by the Canberra offices report, and the performance of Darwin-based staff is covered by the Darwin/Jabiru report.

Management plans were in place or in preparation for all sites to ensure environmental, economic and social objectives and considerations are outlined and integrated. Environmental monitoring and reporting regimes were also in place. A range of operational requirements contributed to the carbon footprint of each site, including electricity generation, transport, development of new infrastructure and waste management. Some properties have specialised needs; for example, the Australian National Botanic Gardens has to maintain climate-controlled conditions in its glasshouses. The remoteness limited opportunities to reduce environmental footprints. Park management activities such as revegetation projects and fire and pest control also had implications for carbon emissions.


In 2011–12, climate change strategies were developed for Christmas Island and Pulu Keeling National Parks. Climate change strategies are already in place for Kakadu and Booderee National Parks, the Australian National Botanic Gardens and Norfolk Island National Park and Botanic Garden. A climate change strategy was prepared for Uluru-Kata Tjuta National Park and has received support from the park Board of Management. Implementation of the strategies across the parks and reserves continues.

Conserving biodiversity is a primary objective for all reserves, and careful management of the use of fire and vegetation can help to reduce greenhouse gas emissions. However, reliable indicators are not yet available to measure the contribution that biodiversity management activities make to cutting emissions.

Energy

Total energy consumption for the parks and reserves has decreased in 2011–12.

Kakadu and Uluru-Kata Tjuta national parks continue to rely primarily on diesel power generation as they are not on an electricity grid. However, consistent with a three-year Energy Audit completed in 2009–10, Kakadu National Park has commenced replacing its diesel-powered generators with more efficient systems that require less fuel. During 2011–12 Kakadu National Park replaced two electricity generators in the South Alligator District, resulting in a saving of approximately 85 litres of diesel fuel per day and reducing CO2 emissions by over 84 tonnes per annum. Uluru-Kata Tjuta National Park is undertaking a program of generator engine rebuilds which will ensure equipment is operating at optimal performance levels.

The ANBG is also limited in its ability to reduce energy consumption, due to its business requirements for maintaining constant plant and herbarium conditions. However, the ANBG continues to aim for a 10 per cent offset in its energy usage and in 2011–2012 purchased 115 118 kilowatt hours of GreenPower (approximately 11 per cent of purchased electricity).

The ANBG has commenced Stage 2 of recommended works from an energy audit to replace the heating, ventilation and air-conditioning system in one of their buildings to deliver electricity savings in 2012–13. The Gardens are also continuing to introduce more electric vehicles to support horticultural operations and in 2011–12 introduced an electric powered people mover for public tours.

Parks and reserves continue to implement and undertake a range of actions to improve energy use. While the impact of these actions may not result in a significant reduction in greenhouse gas emissions they do reflect the efforts being made to improve operations in areas, some of which are remote and provide limited opportunities for large impact changes. Actions and improvements include:

the application of special reflective paint on the roof of Bowali Visitor Centre and the administration building in Kakadu National Park to lower the surface temperature and ensure a more efficient use of the air-conditioning system

Booderee National Park’s ongoing program of improvements at Bristol Point Campground continued with the installation of continuous gas hot water heaters, energy efficient lights and a second solar inverter

the decision by Christmas Island Mine-site to Forest Rehabilitation program to fertilise newly planted trees by hand instead of using large diesel powered machinery. While more labour intensive, overall the change reduces fuel costs and the quantity of fertiliser wasted. Targeting fertiliser specifically to newly planted trees rather than blanketing the area limits weed growth and subsequent competition. By fertilising the Forest Rehabilitation site in this way less vehicle fuel and chemicals are used and staff time spent on weed control is also reduced.

Parks staff continue to make a conscious effort to minimise business-related travel, while recognising that face-to-face contact and visits to remote locations are sometimes necessary, particularly for the three parks that are managed jointly with their Indigenous owners. Parks Australia increasingly uses alternatives to air travel such as teleconferencing and videoconferencing.


Access to regional recycling facilities is gradually improving for more remote locations such as Kakadu and Uluru-Kata Tjuta national parks and external territories. Basic recycling facilities are now available on Norfolk Island and office paper is being sourced from renewable sources when available. Kakadu National Park is participating in a regional recycling and resource recovery program, and will continue its recycling programs in and around offices for paper, glass and aluminum. Uluru-Kata Tjuta National Park is operating the Mutitjulu waste site facility in line with the ‘Waste Management Guidelines for Small Communities in the Northern Territory–Working Towards Best Practice 2009’ and have engaged the services of an appropriate service provider to manage the Mutitjulu waste site facility. Recycling facilities continue to be available in all ANBG offices and onsite facilities including composting of organic kitchen

waste. The ANBG is a ‘rubbish bin free’ site for the public and they are encouraged to take home their waste for recycling. In 2011–12 approximately 500 cubic metres of plant material was recycled as mulch and used onsite.

In 2011–12 Parks Australia purchased an average of four reams per employee. This represented a very slight increase in paper usage from the previous year. The increase reflects the bulk purchasing patterns of remote parks. The parks and reserves are still well under the departmental target of 10 reams per employee per year.

Water

Since 2011 the Australian National Botanic Gardens has been extracting non-potable water from Lake Burley Griffin for irrigation requirements saving up to 170 million litres of potable water from Canberra’s water supply. In addition the gardens continues to use water saving initiatives such as soil sensors, water saving irrigation components and priority watering, recycling of water from catchment ponds, and use of mulch to reduce evaporation.

Uluru-Kata Tjuta National Park has commenced a process to develop and implement a new and improved water management system for the Mutitjulu Community and the park Head Quarters precinct. As well as ensuring the quality of drinking water an improvement in the statistical data collection will enable the park to better monitor usage.

Pulu Keeling has installed three new water tanks to supply water to Parks residence that will service amenities in addition to drinking water.

Norfolk Island National Park operates entirely on harvested rainwater. New tanks with larger capacity have been installed for the office and newly constructed information centre.

Parks and reserves continue to upgrade water infrastructure and institute savings where possible. Activities range from upgrading water reticulation infrastructure at Cave Beach in Booderee National Park to modifying watering regimes in the Christmas Island Mine-site to Forest Rehabilitation program nursery.

Table 7: Summary of environmental indicators–Parks Australia



Total office tenant light and power 225 061 MJ 295 085 MJ -24%

Tenant light and power per person n/a n/a n/a


Total base building energy use 450 626 MJ 518 997 MJ -13%

Base building energy use by area 421 MJ/m2 485 MJ/m2 -13%

Building energy use (electricity)

Public buildings 1 168 824 MJ 1 372 372 MJ -15%


Climate controlled stores 2 763 436 MJ 2 198 530 MJ 26%

Other buildings 32 671 686 MJ 35 460 132MJ -8%

Other uses 279 310 MJ 191 051 MJ 46%

Greenpower purchased as a proportion of total electricity purchased 5.85% 5.99% -2%

Renewable energy generated Not recorded Not recorded Not recorded

Transport

Total number of fleet vehicles (anbg only) 9 9 0%

Average Green Vehicle guide (gvg) rating of fleet vehicles 9.5 9.5 0%


Average fuel consumption of fleet vehicles 15.1 L/100km 10.7 L/100km 41%


Unleaded petrol 3246 L 2459 L 32%

E10 petrol n/a n/a n/a

Diesel 9272 L 6620 L 40%

Lpg n/a n/a n/a


Total number of commercial flights Not reported Not reported Not reported

Total distance travelled by commercial flights Not reported Not reported Not reported

Total number of operational vehicles 127 112 13%


Greenhouse gas emissions (after offsets) attributed to office tenant light and power

54 t CO2-e 69 t CO2-e -22%

Greenhouse gas emissions attributed to base building energy use 98 t CO2-e 106 t CO2-e -8%

Greenhouse gas emissions (after offsets)attributed to energy used by:

Public buildings 257 t CO2-e 297 t CO2-e 13%


Climate controlled stores 142 t CO2-e 113 t CO2-e 26%

Other buildings 3073 t CO2-e 3343 t CO2-e -8%

Other uses 57 t CO2-e 22 t CO2-e 159%

Greenhouse gas emissions attributed to fleet vehicles 32 t CO2-e 23 t CO2-e 39%

Greenhouse gas emissions attributed to operational vehicles 818 t CO2-e 873 t CO2-e -6%

Greenhouse gas emissions attributed to commercial flights Not reported Not reported Not reported

Greenhouse gas emissions attributed to operational aircraft use 3 t CO2-e 25 t CO2-e -87%

Total greenhouse gas emissions after offsets (not including operational vehicles, commercial flights and waste)

3717 t CO2-e 3997 t CO2-e -7%

Total greenhouse gas emissions after offsets (not including operational vehicles, commercial flights and waste) per person

17.3 t CO2-e /FTE

17.7 t CO2-e /FTE

-2%

Water consumption

Total metered potable office water use 195 393 kL 200 926 kL -3%

Total metered potable office water use per person 909 kL/FTE 887 kL/FTE 2%

Total metered potable office water use by area 12.38 kL/ m2 12.73 kL/ m2 -3%

Total harvested water use 70 885 kL 29 903 kL 137%

Total rainwater captured 254 526 kL 254 504 kL 0%


Internal copy paper per person 3.7 reams/FTE 3.65 reams/FTE

1%

Percentage of paper purchased with post consumer recycled content 29% 42% -31%

Office paper recycled 0.25 t 0.22 t 14%



Cardboard 3.8 t 3.9 t -2%

Co-mingled office waste 18.5 t 15.8 t 17%

Organic waste 30t 31.5 t -5%

Waste sent to landfill Not recorded Not recorded Not recorded

Total waste production Not recorded Not recorded Not recorded

Total waste sent to landfill per person Not recorded Not recorded Not recorded

Total waste recycled per person Not recorded Not recorded Not recorded

Proportion of waste diverted from landfill Not recorded Not recorded Not recorded

Australian Antarctic Division

Sites and staffing

The Australian Antarctic Division (AAD) reports on its environmental performance for the offices, laboratories, workshops at Kingston and the port facility in Hobart in Tasmania, as well as environmental performance at subantarctic Macquarie Island station and three Antarctic stations—Davis, Mawson and Casey. Each year over 100 expeditioners are sent south to manage and support scientific research and operational programs. Many of these are return expeditioners, however most are new and undergo extensive environmental training before going south. Up to 300 other personnel go south each year as scientists, field workers, summer personnel and round trip projects, inflating station numbers for periods of hours to months. These numbers affect water consumption, energy use and waste generation, resulting in peaks during the summer months. Station populations drop to as little as 12 to 15 over the winter months.


The AAD continues to act on its commitment to ecologically sustainable development principles, as described in the AAD’s 2012–2015 Environmental Policy, through its efforts to continually improve environmental performance across all its operations in Australia, the Southern Ocean and the Australian Antarctic Territory.

This is achieved through ongoing external certification of the AAD’s Environmental Management System (EMS) to the international standard for environmental management systems (ISO 14001:2004). External auditors undertake surveillance audits each year for Australian-based operations, and at least one station is visited every three years. Australia is the only Antarctic Treaty party to hold such certification for environmental management and it continues to champion this systematic approach through the Committee for Environmental Protection of the Antarctic Treaty System.

Efforts to improve environmental sustainability of AAD’s activities in Antarctica continue, with improvements to waste management and wind generation. At Macquarie Island, monitoring for the largest island vertebrate pest eradication program ever attempted has required an increase in personnel present on the island over winter, with a commensurate increase in energy use, water consumption and waste production.

Energy

Energy use at Kingston facilities has increased due to construction on site to improve and update facilities at Kingston. The warehouse racking has been completely replaced and the whole facility upgraded to meet work, health and safety requirements as well as improvements in waste management for Kingston. It is important to note that the Kingston facilities do not have separate metering so individual components of the electricity reporting are estimates only, based on area.

A remarkable achievement of note is the contribution of renewable energy to conserving fuel in the Antarctic. Since commissioning in early 2003, the Mawson wind turbines have made a significant renewable contribution to the station’s electrical and heating energy requirements. Further energy efficiency and fuel savings are achieved by using cogeneration to capture waste heat from the station’s diesel powered electrical generators. This heat is used to warm the station along with boilers powered by the wind turbines and booster diesel-fired boilers. For the last six years, renewable energy has provided around 40 per cent of the energy needs of Mawson station. For further information and live data, visit AAD’s website- <www.antarctica.gov.au/living-and-working/stations/mawson>.


Significant improvement in office paper recycled from the AAD is due to a major cleanup in the warehouse facility, which included boxes of old brochures, posters, booklets and the like, a major clean up of engineering drawing storages and files, substantial clean up of a number of offices and the disposal of duplicate records. AAD ran education programs, placarded waste disposal sites with new labels and extended its deployment of waste bins across the site all which contributed to increases in co-mingled waste and office paper recycling. The AAD does not have a swipe and print facility, so records of office copy paper actually used and the usage per person data are not collected. However, it is worthy of note that increased electronic record keeping using HP TRIM seems to be reducing the amount of paper used through printing. The increase in recycling and total waste production from Kingston, including waste to landfill, is due to the major warehouse clean up at Kingston.

Waste returned to Australia from its stations has increased, but this is artificially inflated due to the ship successfully getting into Mawson station this year to collect two year’s waste. In fact, waste from the stations that has been diverted from landfill has increased to 40 percent in 2011–12 with improved packing, recycling and reuse practices. Improvements in waste management labelling, storage and packing procedures have also led to improved manifesting of cargo and sorting for disposal on return to Australia, thereby ensuring greater recycling and reuse outcomes.

Water

Water production and consumption at the AAD’s Antarctic and Macquarie Island stations varies widely and is dependent upon the unique method of water production and storage employed at each station.

Water at Davis Station is drawn from a tarn and then processed through a continuous micro-filtration system and a reverse osmosis desalination plant. The water produced is then pumped via a calcite filter to two 600 000 litre tanks for storage and then onto smaller tanks for consumption. Total water storage at Davis is 1 430 000 litres.

Water at both Mawson and Casey stations is produced primarily by melting snow and ice in a melt cavern using hot water pumped through a melt bell. The water is then pumped into storage tanks before passing through a gauze filter at Mawson and a calcite filter at Casey to the end user. During summer there is a limited amount of free water depending on ambient temperature, which controls the extent of the melt. Total water storage at Mawson and Casey stations is 270 000 litres each.

The water for Macquarie Island is run off from the plateau, collected in a small dam, piped to two storage tanks before passing through gauze, sand and UV filters to the end user. The total water storage capacity at Macquarie Island is 104 000 litres.

Because freshwater is a precious commodity which has to be produced by the variety of methods outlined above, including the use of fuel to melt ice, water saving appliances are installed wherever possible and each person on station is asked to use as little water as possible.

Table 8: Summary of environmental indicators–AAD Kingston offices

Indicator 2011–2012 result

2010–11 result % change


Total office tenant light and power 3 299 270 MJ 3 220 182 MJ 2%

Tenant light and power per person 11 146 MJ/FTE 10 593 MJ/FTE 5%

Tenant light and power per square metre 381 MJ/m2 372 MJ/m2 2%

Total base building energy use 3 299 270 MJ 3 220 182 MJ 2%

Base building energy use by area 381 MJ/m2 372 MJ/m2 2%

Building energy use

Laboratories 1 026 439 MJ 1 001 837 MJ 2%



Other including warehouse, workshops, outbuildings 7 038 446 MJ 6 869 725 MJ 2%

Cargo facility at hobart port 683 784 MJ 581 580 MJ 18%

Greenpower purchased as a proportion of total electricity purchased 0% 0% 0%


Transport

Total number of fleet vehicles 7 7 0%

Average green vehicle guide (gvg) rating of fleet (score out of 20) 12.6 12.6 0%

Average fuel consumption of fleet vehicles 9.2 L/100km 13.5 L/100km -32%


Unleaded petrol 5,480 L 5,327 L 3%

E10 petrol 0 L 0 L 0%

Diesel 2,308 L 1,901 L 21%

Lpg 0 L 0 L 0%


Total number of commercial flights 3748 3273 15%

Total distance travelled by commercial flights 4 949 415 km 4 723 129km 5%


Greenhouse gas emissions attributed to office tenant light and power 293 t CO2-e 286 t CO2-e 2%

Greenhouse gas emissions attributed to base building energy use 293 t CO2-e 286 t CO2-e 2%

Greenhouse gas emissions attributed to energy used by:

Laboratories 91 t CO2-e 89 t CO2-e 2%



Other—warehouse, workshops, outbuildings 626 t CO2-e 611 t CO2-e 2%

Cargo facility at hobart port 61 t CO2-e 52 t CO2-e 17%

Greenhouse gas emissions attributed to fleet vehicles 20 t CO2-e 18 t CO2-e 11%

Greenhouse gas emissions attributed to commercial flights 1087 t CO2-e 1039 t CO2-e 5%


2010–11 result % change

Total greenhouse gas emissions (not including commercial flights and waste)

1348 t CO2-e 1342 t CO2-e 0%

Total greenhouse gas emissions (not including commercial flights and waste) per person

4.3 t CO2-e 4.2 t CO2-e 2%

Water consumption

Total metered potable office water use 3376 kL 3153 kL 7%

Total metered potable office water use per person 11.3 kL/FTE 10.9 kL/FTE 4%

Total metered potable office water use by area 0.39 kL/ m2 0.36 kL/ m2 8%


Internal copy paper per person 6.54 reams/FTE 7.27reams/FTE -10%

Percentage of paper purchased with post consumer recycled content 100% 100% 0%

Office paper recycled 10.7 t 4.3 t 149%


Co-mingled office waste 66.4 t 50.3 t 32%

Organic waste 0 t 0 t 0%

Waste sent to landfill 207.6 t 173.8 t 19%


Total waste sent to landfill per person 642.7 kg/FTE 541.4 kg/FTE 19%

Total waste recycled per person 238.7 kg/FTE 170.1 kg/FTE 40%

Proportion of waste diverted from landfill 27% 24% 12%

Table 9: Environmental Indicators–Antarctic and Macquarie Island Operations (Four Stations)


2010–11 result

% change

Energy use

Electricity generated by diesel 20 057 130 MJ

19 272 359 MJ

4%

Renewable energy generated 4 666 522 MJ

5 828 450 MJ

-20%

Electricity use per person (expeditioners, round trippers, voyage management staff, crew, etc)

169 340 MJ/FTE

158 365 MJ/FTE

7%

Operational diesel fuel used (electricity generation, vehicles, plant, incinerators, boilers) sab–special antarctic blend

2 119 474 2 118 466 L 0%

Total number of operational vehicles 178 Not recorded

n/a

Marine diesel oil used for shipping 3 661 719 L 3 946 272 L -7%

Aircraft fuel used (aviation turbine kerosene) 630 980 L 613 544 L 3%


Greenhouse gas emissions attributed to diesel fuel (electricity generation, vehicles, plant, etc.)

6846 t CO2-e

6843 t CO2-e 0%

Greenhouse gas emissions attributed to shipping 11 464 t CO2-e

12 355 t CO2-e

-7%


2010–11 result

% change

Greenhouse gas emissions attributed to aircraft 1739 t CO2-e

1691 t CO2-e 3%

Total greenhouse gas emissions for antarctic operations 20 049 t CO2-e

20 889 t CO2-e

-4%

Total greenhouse gas emissions for antarctic operations per person 137 t CO2-e 132 t CO2-e 4%

Greenhouse gas emissions saved through renewable energy generation 326 t CO2-e 407 t CO2-e -20%

Water consumption

Total water use 7,011 kL 6,705 kL 5%

Total water use per person 48.02 kL/FTE

42.30 kL/FTE

14%

Waste returned to Australia

Liquid waste treated and disposed 47.1 t 22.4 t 110%

Waste sent to recycling facilities 76.8 t 25.8 t 198%

Waste sent to landfill 113.2 t 120.5 t -6%


Total waste per person 1625 kg/FTE

1281 kg/FTE

27%

Proportion of waste diverted from landfill–large amount of recycling from Mawson

40% 33% 21%

Total AAD greenhouse gas emissions

Total greenhouse gas emissions (not including commercial flights and waste)–Kingston offices, labs, workshops, warehouse, outbuildings and cargo facility

1348 t CO2-e

1342 t CO2-e 0%

Total greenhouse gas emissions for antarctic operations 20 049 t CO2-e

20 889 t CO2-e

-4.0%

Total AAD greenhouse gas emissions 21 397 t CO2-e

22 231 t CO2-e

-4%

Human rightsThe department operates within the context of Australia being a signatory to the seven key human rights treaties, with human rights being protected and promoted through a range of domestic legislation, policies and practices and independent bodies. In line with Australia’s Human Rights Framework, the department promotes a human rights culture. This involves an expectation that departmental staff treat all people with respect and consideration, and avoid making assumptions based on personal characteristics or behavior. It also involves ensuring that the department is a safe and respectful workplace that reflects the diversity of the people it serves. This commitment is consistent with our obligations under the APS Values and Code of Conduct, as contained in the Public Service Act 1999.

Staff have access to a range of resources, including the publication ‘In our hands: a guide to human rights for Australian public servants’ provided by the Attorney-General’s Department to assist staff to understand human rights obligations and take them into account in their daily work. For more information and to access the publication, visit the Attorney-General’s Department website <www.ag.gov.au>.

Human resourcesThe department aims to attract, develop, engage and retain quality people to ensure corporate goals are achieved and changing business needs are met.

Results 2011–12

A new three-year enterprise agreement was negotiated and commenced on 5 December 2011. The DSEWPaC Conduct and Ethical Behaviour Framework was implemented to positively assist all

employees and managers with their responsibilities and obligations in the context of APS and ethical workplace behaviour standards and expectations.

Revised performance management frameworks, linked to improvements in the workforce capability framework, were implemented and refined.

One hundred and thirty four senior executive service, executive level, and Australian Public Service (APS) level 6 staff members participated in learning and development events in 2011–12 offered through the department’s successful three-year Leadership Development Program (LDP).

On 26 April 2012, the secretary launched the Indigenous Employment and Capability Strategy. Building on the successful previous strategy, this strategy maintains a continued focus on the recruitment, retention, and workplace support and capability/career development for Aboriginal and Torres Strait Islander employees.

Table 10: Summary of employment performance

Indicator 2011–12 result 2010–11 result % Change

Number of staff employed (headcount) 2987 2954 1.4%

Total employee expenditure (dollars) 262 310 247 960 5.8%

The diversity of our workforce

Women (% of the total workforce) 56.8% 55.3% +3.3%

People with a disability (% of total workforce) 2.4% 2.3% +0.1%

Aboriginal and torres strait islander (% of total workforce) 3.7% 3.8% -0.1%

Staff with English as a second language (% of total workforce) 6.8% 6.8% 0%

Staff health and wellbeing

Work occupational health and safety incident reports* 25 48 -52.1%

Training and education

Percentage of staff undertaking supported studies 4.4% 4.1% +0.3%

Notes: Workforce diversity data relies on self identification.

Workforce profile

The department has a diverse workforce, with some 2987 people located in all states and territories, Australia’s external territories and Antarctica. Of these, 2149 employees (72 per cent) were located in Canberra and 838 employees (28 per cent) outside of Canberra.

Almost half, 49.5 per cent of employees were employed at the executive level 1 and APS6 level classification.

Performance management

The department strives for continuous improvement to its operations by:

encouraging leadership capabilities and behaviours and eliciting the best from staff developing strong relationships with stakeholders strengthening business systems and governance practices.

During 2011–12 the department continued to provide training through structured courses and one-on-one training assistance to managers. This helped managers identify performance issues and address them in a timely manner.

The department also completed a project to revise its performance management framework linked to an improved workforce capability framework for the department.

Completion rates and performance ratings of performance agreements continue to be provided to the Workforce Management Committee to highlight any trends.

The department is also looking at implementing a manager-one-removed process in the coming year for executive level employees.

Workforce planning

The retention rate for ongoing employees in 2011–12 was 89 per cent, compared to 86 per cent in 2010–11. The overall separation rate (including promotions and transfers to other APS agencies) was 25.5 per cent, a decrease from 27.3 per cent in 2010–11. This figure includes the department’s non-ongoing employees, primarily employed to meet seasonal operational demands in the Australian Antarctic Division and some national parks. Excluding these employees, the separation rate for ongoing employees was 10.7 per cent, a decrease from 13.1 per cent in 2010–11.

The department continued to lead the human resources (HR) Metrics Forum it established in late 2009. Its purpose is to exchange HR data and information between a number of agencies, allowing them to undertake more frequent HR metrics benchmarking. The forum comprised 17 agencies as at 30 June 2012 and met four times during 2011–12. Analysis of the metrics has informed a number of initiatives in the department in 2011–12.

A key priority during 2011–12 was the development of a Workforce Capability Framework for employees in the department. The first phase of this project was completed. The framework provides a means to match departmental priorities with available resources and people capability. The framework also specifies the common core leadership, management and administrative skills, behaviours and knowledge required for staff in the department. It will aid the development of career progression, tools and programs to support both employees and managers in identifying learning needs.

Enterprise agreement

The new Department of Sustainability, Environment, Water, Population and Communities Enterprise Agreement 2011–2014 took effect on 5 December 2011, following seven months of negotiations. The enterprise agreement complies with the APS Bargaining Framework and aims to increase the department’s efficiency and effectiveness, improve the department’s policy and program outcomes, and enhance the quality of employees’ working lives.

The enterprise agreement includes the provision of Individual Flexibility Arrangements. These can be offered in recognition of particular skills, capabilities or additional responsibilities or to help meet special workplace circumstances and/or operational requirements. There were 60 Individual Flexibility Arrangements in place as at 30 June 2012. The department no longer offers performance bonuses to staff.

Learning and development

Developing our people and demonstrating our commitment to a culture of learning has remained central to attracting and retaining quality staff over the past year. The department provided opportunities for staff to access wide-ranging learning and development activities, both in-house and externally. In addition, approximately 130 staff members received support to undertake tertiary study.

It has also remained a priority, particularly at the divisional level, to give employees development opportunities to continually strengthen the skills and knowledge needed to deliver our business and achieve results. This includes specialist skill development, offered in a number of divisions to meet technical requirements. The ongoing use of a learning and development plan within performance agreements has played an important role in this regard.

The successful three-year departmental Leadership Development Program (LDP) came to an end in August 2011. Twenty-four employees participated in the final executive level events between July and the end of August. A further 99 employees took part in a related component of the LDP, Building Productive Partnerships, aimed at APS 6 employees, between July 2011 and June 2012. Over the full life of the LDP, a total of 1073 APS, executive, and senior executive service (SES) staff members completed the program. The LDP communicated and promoted a common language and understanding of leadership capability and expectations around leadership behaviours to a large segment of departmental managers. The program was evaluated following completion and was viewed as having contributed

significantly to managers’ ability to lead the department efficiently and effectively, and to an enhanced culture of leadership.

During the year, 12 SES officers, new to the department or the level, took part in an SES induction program aimed at providing an opportunity for team building within the new cohort and to take the opportunity to deliver consistent management and leadership information to all new SES employees.

Online systems to support learning and development continue to expand. The online orientation program was updated with new modules to provide site-specific information for employees working in the Australian National Botanic Gardens and offices at 18 Marcus Clarke Street, and improvements to enhance accessibility for users of assistive technology. Other new online programs were rolled out to provide training in aspects of financial management (including delegations); work, health and safety (to comply with new legislation); and records management. Existing e-learning modules in selection advisory committee accreditation, code of conduct and security training were also updated.

Using other internal and external development programs, staff also undertook training in various aspects of public policy and administration, such as legislation and decision making in the APS.

In addition, the department delivers significant learning and development activities as part of specialist recruitment programs, such as the graduate program, school-leaver traineeships and some entry-level apprenticeships.

Code of conduct and ethical standards

The department is firmly committed to the APS Values and Code of Conduct and recognises the importance of promoting a positive workplace culture and environment. It demonstrates this commitment by encouraging its workforce to articulate and model appropriate behaviours and by appropriately and decisively addressing incidents of workplace misconduct.

On 3 November 2011 the secretary approved the DSEWPaC Conduct and Ethical Behaviour Framework, which positively assists all employees and managers with their responsibilities and obligations in the context of APS and ethical workplace behaviour standards and expectations.

The Professional Standards Section within the Corporate Strategies Division provides guidance and advice to staff on all aspects of the APS Values and Code of Conduct as well as fraud awareness. The Professional Standards Section also delivers specialised internal investigation services and takes appropriate action when allegations are received about suspected misconduct, internal fraud or other criminal behaviour by departmental staff.

Remuneration for senior executive service officers

The remuneration for senior executive service officers in the department reflects the work value of the roles, job complexity, individual capabilities, contribution and performance, and other relevant market considerations.

In determining the parameters for remuneration, ranges are set for each classification following consideration of annual benchmarking data such as the APS Remuneration Survey, the Australian Government Employment Bargaining Framework, general economic conditions and portfolio and departmental performance.

Disability reporting mechanisms

Since 1994, Commonwealth departments and agencies have reported on their performance as policy advisers, purchasers, employers, regulators and providers under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at <www.apsc.gov.au>. From 2010–11, departments and agencies are no longer required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by a new National Disability Strategy which sets out a 10-year national policy framework for improving life for Australians with disability, their families and carers. A high-level report to track progress for people with disability at a national level will be produced by the Standing Council on

Community, Housing and Disability Services to the Council of Australian Governments and will be available at <www.fahcsia.gov.au>. The Social Inclusion Measurement and Reporting Strategy agreed by the government in December 2009 will also include some reporting on disability matters in its regular How Australia is Faring report and, if appropriate, in strategic change indicators in agency annual reports. More detail on social inclusion matters can be found at <www.socialinclusion.gov.au>.

Social inclusion

The department upholds the APS Values and Code of Conduct in promoting a positive culture where diversity is recognised, encouraged and celebrated through a number of employment strategies and programs, including the department’s strategy, Diversity Works 2009–12.

The department’s diverse workforce includes Aboriginal or Torres Strait Islanders, people with disability and people from a non-English Speaking Background (NESB).

Diversity Groups

Diversity Group Proportion of Ongoing Staff

Department’s Supporting Strategy

Aboriginal or Torres Strait Islander

3.7% Indigenous Employment and Capability Strategy 2012–2014 (IndECS)

People with disability 2.4% Disability Action Plan 2009–11

NESB 6.8% Diversity Works 2009–12

Note: this data is for ongoing staff as at 31 December 2011. The data has been sourced from the Australian Public Service Employment Database (APSED), which is managed by the Australian Public Service Commission. This data for 30 June 2012 is not yet available. It is important to note that it is voluntary for staff to identify as belonging to a diversity group.

The department refreshed the Indigenous Employment and Capability Strategy 2012–14 (IndECS) during 2012. Building on the successful 2009–11 strategy, the new IndECS continues many successful initiatives and, incorporating ideas generated at the Biennial Indigenous Employees’ Conference in March 2011, includes innovative new strategies.

As part of IndECS the department held its annual workshop for the executives of the Indigenous Staff Networks (ISNs) in Uluru, Northern Territory. The department supports three networks for employees based in Canberra, in Kakadu/Uluru and in Booderee. An outcome of the workshop was a proposal to establish an overarching national ISN, currently being developed, to ensure that the needs of both regional and Canberra-based employees are given greater focus.

Training events included three Indigenous Cultural Awareness Training programs conducted in Canberra and culturally specific training for Indigenous and non-Indigenous employees to enable them to provide effective mentoring for Aboriginal and Torres Strait Islander employees.

Through IndECS, the department also offers graduate and cadet positions to Aboriginal and Torres Strait Islander employees. In 2011 there was one Indigenous graduate; in 2012 four Indigenous graduates are part of the department’s Graduate Program. In 2011 three Indigenous cadets were employed by the department, one of whom joined the 2012 Graduate Program upon successful completion of their degree at the end of 2011. In 2012, four Indigenous cadets were employed by the department, two of whom were continuing cadets from 2011.

The Kevin McLeod Award was continued in 2012. This award honours the memory of Kevin McLeod, a long-term departmental staff member. It encourages staff to undertake projects with a strong emphasis on learning, which reflects Kevin’s passion for looking after country and people, and for living reconciliation. The award commemorates the support, mentorship and leadership that Kevin so readily embodied, and his outstanding contribution to the department’s Indigenous recruitment and retention practices. The award is part of the department’s Reconciliation Action Plan and is an initiative in the IndECS.

The department’s Reconciliation Action Plan (RAP) for 2010–12 focused on Indigenous-specific programs and policies and on employment targets. It consolidated and advanced efforts towards achieving mutual respect, building stronger relationships and providing opportunities for Aboriginal and Torres Strait Islander peoples, especially through Indigenous programs.

Consultation commenced on the development of the department’s second RAP 2013–15. This will continue our work towards Closing the Gap between Indigenous Australians and non-Indigenous Australians. Under this new plan, the department will expand its focus to include mainstream policy and programs to strengthen the department’s relationships with Traditional Owners and Indigenous peoples nationally and at the regional and local levels.

The department’s RAP and Closing the Gap Champion is Deputy Secretary Kimberley Dripps, who reports to the Executive Board on the work of the RAP Steering Committee.

Programs offered to staff in 2011–12 included:

eight seminars on Exploring the Value of Diversity to raise the awareness of staff about the importance of diversity

celebrations on key national days/weeks, including International Day of People with Disability, International Women’s Day, Harmony Day, National Reconciliation Week and NAIDOC Week.

Programs for employees with disabilities are listed below.

The disability sponsor, Deputy Secretary David Parker, continued his role of promoting and supporting the inclusion of people with disability, listening to the views and concerns of people with disability and ensuring that the goals of the Disability Action Plan and progress towards meeting them remain ‘on the radar’ of the department’s senior executives and Executive Board.

The department established the role of Disability Coordinator. This is an executive level employee whose role includes providing a central point of coordination for people with disability, and colleagues to assist with individual and systemic issues.

The department continued support for the employee-run network for users of Dragon Naturally Speaking assistive technology to help identify and address systemic issues.

The department promoted support services available to employees with disability and their managers and colleagues on its intranet. In addition, the department developed and promoted a process for developing Personal Emergency Evacuation Plans for people who need assistance in an emergency evacuation.

The department applied the principles of reasonable adjustment within the workplace to support improved work participation by employees with disabilities. In addition, consultation commenced on articulating these principles in a Reasonable Adjustment Policy.

The department sought to build and maintain strong stakeholder relationships by providing quality information about activities and services that are accessible to all Australians. For example, the department:

provided accessibility and safety information about public areas of Commonwealth parks and reserves for the benefit of those people with physical disability

advertised complaint mechanisms on the department’s website for access-related complaints (no complaints were received)

maintained its membership of the Australian Network on Disability and participated in disability forums provided all members of the public, regardless of disability or technological constraint, with easy access to the

department’s online content. Work is under way to upgrade the department’s websites from the former standards to Web Content Accessibility Guidelines version 2.0 (AA conformance), as required by Australian Government Web Accessibility National Transition Strategy. It is anticipated that this will be completed by June 2013.

Stakeholder relations

Public affairs

The Public Affairs section support the department to deliver policy and programs by providing strategic communications advice to business teams and the minister and parliamentary secretary’s office. The successful delivery of the department’s policies and programs are reliant on effective communication.

All communications activities–including media and issues management, advertising, media monitoring, publication development, multi-media, market research, and social media–are managed through the Public Affairs section.

The department is committed to exploring innovative channels to communicate with our stakeholders. The portfolio websites continue to be a primary source of information. Traditional media is complemented with the use of social media such as Twitter, YouTube and Facebook.

The department continues to consider environmentally sustainable approaches in the development of all communications. Production of all printed products, such as booklets, banners, and fact sheets, are produced using paper that complies with international environmental standards.

Online information

The department’s websites are the primary communication tool for the department’s national and global audiences, providing continuous access to our services and information.

The department has continued its commitment to improving access to our online information. For example, in November 2011 the <www.nrm.gov.au> website was redeveloped and launched with a more client-centred approach and a greater focus on the projects undertaken under the Caring for our Country program. In February 2012 a new website for Australian Heritage Week at <www.heritage-week.govspace.gov.au> was launched. This website is designed to make it easier for participants to register or locate events.

During 2011–12 there were over 11 million visits to the department’s websites. The most popular website was the environment.gov.au site, with more than 5.2 million visits.

Figure 1: Environment Portfolio Web site traffic 2011-1

Ministerial and parliamentary services

The Parliamentary Services section manages parliamentary business for the portfolio, including the management and coordination of ministerial correspondence, ministerial briefings, questions on notice, question time briefs and senate estimates.

The section records, performs quality assurance checks on, and tracks documents flowing between the minister’s and parliamentary secretary’s offices and the department. The section also provides advice to portfolio line areas on ministerial and parliamentary matters.

In 2011–12 the department prepared over 1824 briefing submissions for the minister and the parliamentary secretary.

There were 15243 items of correspondence received by the minister and the parliamentary secretary and registered on the department’s database. The following table shows statistics in ministerial correspondence over the past two years.

Table 11: Number of ministerial correspondence items in 2010–11 and 2011–12

2011–12 2010–11

Number of correspondence items 15243 11459

Community Information

The department continued to maintain an in-house Community Information Unit that receives requests for information and feedback on the department’s services. The unit also manages the distribution of departmental publications, the publications shopfront and the client service officer function.

In 2011–12 the community information unit responded to 17112 enquiries from the Australian community; 31.1 per cent about grant and funding programs and 68.9 per cent seeking general information about the department and its programs. The unit managed the distribution of 41 402 publications.

Table 12: Community information 2010–11 to 2011–12

2011–12 2010–11

Enquiries 17112 13292

Publications distributed 41402 20848

Shopfront visitors 4370 3227

Service charter

The department’s service charter for 2011–14 sets out the standards of service clients can expect and how to give feedback on performance. The charter is available at <www.environment.gov.au/about/publications/charter.html> or in hard copy by contacting the community information unit toll free on 1800803772.

The client service officer can be contacted at:

Client Service Officer Department of the Sustainability, Environment, Water, Population and Communities GPO Box 787 Canberra ACT 2601 Phone: 02 6274 1594 Toll free: 1800 803 772 Fax: 02 6274 1970 Email: [email protected]

Inquiries and complaints

The department’s client service officer received 27 enquiries in 2011–12. Of these, 10 were not related to the department, four were general enquiries, one was a compliment and 12 were complaints related to the department’s policies and programs. Requests for information and assistance were forwarded to the appropriate work area for action.

Feedback on performance of service delivery

The department received feedback from seven people about service delivery standards through its client service officer in 2011–12. Of these, five people said that the department’s service delivery did not meet their expectations. One person indicated that their expectations had been met and one indicated that their expectations had been exceeded. The negative responses generally related to grants program applications.

Support for environment, heritage and sustainability organisations

Grants to Voluntary Environment, Sustainability and Heritage Organisations

The Grants to Voluntary Environment, Sustainability and Heritage Organisations (GVESHO) program assists eligible not-for-profit community-based environment, sustainability and heritage organisations by contributing to their administrative costs. In 2011–12 grants totalling $1.32 million were awarded to 163 organisations. Details of recipients and grant amounts are available at <www.environment.gov.au/about/grants/index.html>.

Register of environmental organisations

The Register of Environmental Organisations is a list of environmental organisations eligible to receive tax-deductible donations. It was established under item 6.1.1 subsection 30-55(1) of the Income Tax Assessment Act 1997 (the Act). Donations of money or property to these organisations, for the conservation of the natural environment, are income tax deductible.

During 2011–12 the department assisted over 130 organisations interested in applying for entry to the register. The minister and the assistant treasurer approved the listing of 39 organisations and their public funds on the register. Three organisations and their public funds were removed from the register. At 30 June 2012 the register listed 582 organisations, compared to 546 at 30June 2011.

The most recent statistics available are for the year 2010–11, which show that the public donated more than $147 million to tax-deductible environmental organisations to help protect and enhance the natural environment.

Figure 2: Donations to Environmental Organisations

The department also maintains an apportionment register. Under the Income Tax Assessment Act 1997, donors that have donated money or property valued at more than $5,000 to a tax-deductible environmental organisation, or who have entered into a perpetual conservation covenant with an accredited conservation program, may elect to apportion their donation over a period of up to five years by sending an election form to the department. The department recorded three apportionment elections and variations during 2011–12.

International policy advice

In addition to involvement in issue-specific international forums (detailed in other chapters of this report), in 2011–12 the department was active in a number of multilateral and regional meetings as part of the government’s sustainability agenda.

United Nations Environment Programme (UNEP)

UNEP provides leadership and promotes partnerships for environmental protection. The department led Australia’s delegation to the 12th special session of UNEP’s Governing Council and the Global Ministerial Environment Forum in Nairobi, Kenya, from 20–22 February 2012. Decisions adopted at the meeting covered:

international environmental governance the world environmental situation sustainable consumption and production the consultative process on financing options for chemicals and wastes enhancing cooperation and coordination with the chemicals and wastes cluster financial and administrative arrangements between UNEP and the multilateral environmental agreements enhanced coordination across the UN system.

Ministerial-level consultations addressed the themes of the green economy in the context of sustainable development and poverty eradication, and the institutional framework for sustainable development. Further information on the meeting is at <www.unep.org/gc/gcss-xii/>.

UN Conference on Sustainable Development (Rio+20)

The United Nations Conference on Sustainable Development (Rio+20) was held in Rio de Janeiro, Brazil from 20–22 June 2012. Australia was instrumental in contributing to international efforts to accelerate progress towards achieving sustainable development. At the Rio+20 Conference, 191 nations agreed on a 49-page negotiated outcomes text The Future We Want which reflects Australia’s priorities for the future of sustainable development. Australia received recognition for its strong advocacy on oceans, in particular commitments relating to marine protected areas, fisheries management and subsides, marine debris, ocean acidification and invasive species and a timetable for addressing the protection of biodiversity beyond national jurisdictions.

Organisation for Economic Cooperation and Development (OECD)

The department represented Australia in the OECD Environment Policy Committee (EPOC), which met in Paris from 2–4 May 2012. Discussions covered the review of the Russian Federation, Post Accession reporting of Chile, the EPOC Global Relations Strategy, as well as the outcomes of the EPOC Ministerial Meeting, the review the OECD Communication Plans for the UN Conference on Sustainable Development (Rio+20) and the Programme of Work and Budget for 2013.

High-level Seminar on Environmentally Sustainable Cities

The East Asia Summit (EAS) was established in 2005 as a forum of national leaders for strategic dialogue and action on key challenges facing the region. As part of the EAS environment ministers’ process, Australia co-organised (with Japan, Cambodia and Thailand) the 3rd EAS High-level Seminar on Environmentally Sustainable Cities (HLS-ESC) on 6–8 March 2012 in Siem Reap, Cambodia. The seminar brought together policy makers, city officials, international organisations and academics to share information on policies and best practice in developing environmentally sustainable cities. The summary of the meeting is available at <www.hls-esc.org>.

Urban Sustainability: Adapting to Change Seminars

The department and CSIRO hosted the two seminars Urban Sustainability: Adapting to Change, in Can Tho, Vietnam and Makassar, Indonesia in March and April 2012. The seminars were funded by the department and AusAID’s whole-of-government EAS Fund, and included financing the attendance of participants from Vietnam, Indonesia, Myanmar, Thailand, India, and Laos. The seminars were part of Australia’s contribution to the EAS environment stream in 2012. Participants from EAS member countries used the forum to discuss urban sustainability and climate change adaptation.

Singapore Study Tour

From 14–17 May 2012 the department hosted a high-level study tour from the Singapore Ministry of Environment and Water Resources, National Environment Agency, and Public Utilities Board. This information sharing visit included briefing on public consultation, environmental impact statements and assessment processes, the National Pollutant Inventory and the draft Murray–Darling Basin Plan.

Annual bilateral discussions on environment with New Zealand

The secretary led a delegation to Wellington, New Zealand, on 11 August 2011 for the bilateral discussions on environment issues with officials from the New Zealand environment portfolio. The discussions covered the strategic directions of the two agencies on a range of shared issues including:

the UN Conference on Sustainable Development (Rio+20) Pacific engagement water management chemicals and waste oceans the Convention on Migratory Species.

These discussions strengthened the close relationship between our two countries on environmental management and stewardship.

Indonesia Working Group

The department coordinates the Australian Government’s participation in the Australia–Indonesia Joint Working Group on Environment and Climate Change. The working group was established in 1996 to foster high-level engagement between senior officials from Australia and Indonesia, and is the primary vehicle through which the two governments formally discuss environment and climate change issues. The working group met in Canberra in February 2012 for discussions on a range of topics of mutual interest, including the Rio+20 conference, the East Asia Summit, marine issues and the blue economy, Indigenous engagement, mining, environmental compliance, water, climate change, transboundary pollution, and ozone.

Torres Strait Environmental Management Committee

The department represented Australia at the 20th meeting of the committee, held in Kokopo, Papua New Guinea (PNG), on 11 November 2011. Issues discussed included sustainable marine turtle and dugong management, fisheries management, invasive species, enhanced communication, integrated coastal zone management, and future development issues in the Torres Strait region. The committee also committed to developing community-based management plans for the management and conservation of marine resources for Treaty communities in the Western Province of PNG. This will mirror plans in place in Torres Strait communities that underpin the Indigenous Rangers Network Australia launched at the United Nations Conference on Sustainable Development (Rio +20).

Trans-Pacific Partnership Agreement (TPP)

The department works in the bilateral trade and environment arena through its input into the negotiation of Australia’s Free Trade Agreements. In particular, the department has been involved in negotiations related to the TPP. The TPP is the government’s highest regional trade negotiation priority and the parties include Australia, Malaysia, Peru, the USA, Vietnam, Brunei Darussalam, Chile, New Zealand, Singapore, Canada and Mexico. While the Department of Foreign Affairs and Trade has the lead on trade issues, the department provides advice and input on those issues related to its portfolio interests.

Procurement

Performance against core purchasing policies

The department’s procurement guidelines are set out in the Chief Executive Instructions, which comply with the Commonwealth Procurement Guidelines. The core principle in the Guidelines underpinning procurement is value for money. The department advertises tender opportunities through the AusTender website. The department’s Annual Procurement Plan for 2011–12 was published in June 2011 on AusTender and updated throughout the year. The Annual Procurement Plan for 2012–13 was published on AusTender in June 2012.

Reporting

The department met the requirement to report on the AusTender website all contracts entered into in 2010–11 with a value of $10 000 or more. The department met the requirement to report on the Senate Order on Departmental and Agency Contracts.

Consultancy services

During 2011–12, 168 new consultancy contracts were entered into involving total actual expenditure of $6.27 million. In addition, 28 ongoing consultancy contracts were active during the 2011–12 year, involving total actual expenditure of $6.55 million.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website <www.tenders.gov.au>.

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 Financial Management and Accountability Act 1997 and related regulations including the Commonwealth Procurement Guidelines and relevant internal policies.

Exempt contracts

During 2011–12 there were no standing offers or contracts in excess of $10 000 (inclusive of GST) exempted by the chief executive from being published on AusTender under the Freedom of Information Act 1982.

Australian National Audit Office Access Clauses

During 2011–12 the department is aware of and has engaged in 16 contracts and one grant program of $100,000 or more (inclusive of GST) that did not provide for the Auditor-General to have access to the contractor’s premises. The list of contracts and the grant program is on the next page.

Table 13: List of contracts and grant programs

Contractor Purpose Value ($) Reason why standard access clauses were not included


Water entitlements 949 500 Administrative oversight. Subsequent contracts now include access clauses.











Department of Sustainability, Environment, Water entitlements 570 000 Administrative


Water, Population and Communities oversight. Subsequent contracts now include access clauses.
















Water entitlements 4 556 268 Administrative oversight. Subsequent contracts now include access


clauses.

ESRI Australia Pty Ltd Software System 1 932 962 Administrative oversight. Subsequent contracts now include access clauses.

Multiple recipients funded from the Caring for our Country–Environmental Stewardship program

920 substantially identical contracts under the Caring for our Country Environmental Stewardship Program which aims to maintain and improve the condition and extent of targeted matters of National Environmental Significance, as listed under the Environment Protection and Biodiversity Conservation Act 1999, on private land.

143 843 004 Administrative oversight. Subsequent contracts now include access clauses

Economic IndicatorsThe following tables summarise economic indicators for the department. The first relates to departmental funds and the other relates to administered funds.

Table 14: Economic indicators–departmental funds

Indicator 2011–12 $’000 2010–11 $’000 % change

Operating statement

Total expenses 686 320 539 748 27%

Total own-source income 91 273 76 399 19%

Net cost of service 595 047 463 349 28%

Economic viability

Total assets 510 359 518 163 (2%)

Total liabilities 552 465 425 572 30%

Table 15: Economic indicators–administered funds

Indicator 2011–12 $’000 2010–11 $’000 % change

Operating statement

Total expenses 888 298 1 279 903 (31%)

Total own-source income 78 293 34 440 127%

Net cost of service 810 005 1 245 463 (35%)

Economic viability

Total assets 3 044 922 2 436 300 25%

Total liabilities 42 049 54 911 (23%)

Financial performanceThis section highlights the department’s financial performance during 2011–12 for both departmental and administered activities.

Financial performance of departmental activities

The department’s departmental financial performance for 2011–12 is summarised in the table below. Departmental resourcing includes assets, liabilities, revenues and expenses that the department controls directly and uses to produce outcomes on behalf of the government.

Table 16: Departmental financial performance

Departmental 2011–12 Actuals $’000 2010–11 Actuals $’000 Variance $’000

Outcome 1 Income 140 433 188 746 (48 313)

Expenses 143 791 196 169 (52 378)

Surplus/(Deficit) (3358) (7423) 4065

Outcome 2 Income 49 893 48 963 930

Expenses 51 149 53 331 (2182)

Surplus/(Deficit) (1256) (4368) 3112

Outcome 3 Income 132 182 112 691 19 491

Expenses 246 005 153 807 92 198

Surplus/(Deficit) (113 823) (41 116) (72 707)

Outcome 4 Income 134 308 76 545 57 763

Expenses 136 456 80 550 55 906

Surplus/(Deficit) (2148) (4005) 1857

Outcome 5 Income 100 708 54 430 46 278

Expenses 108 919 55 891 53 028

Surplus/(Deficit) (8211) (1 461) (6750)

Total departmental Income 557 524 481 375 76 149

Expenses 686 320 539 748 146 572

Surplus/(deficit) (128 796) (58 373) (70 423)

Notes:

2011–12 Actuals Actual income and expenses for 2011–12.


Variance The difference between the actual results for 2011–12 and 2010–11 (i.e. 2011–12 Actuals minus 2010–11 Actuals).

Table 17: Comparison of departmental financial performance with previous year

Outcome Income Expenses

Outcome 1

Income decreased in 2011–12 by $48.31 million mainly due to:

the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $55.85 million (2010–11: $52.70 million)

an increase of $5.30 million in funding for the Clean Energy Future-Biodiversity Fund

an increase of $3.14 million in funding for the Caring for our Country–Environmental Stewardship Program

an increase of $1.88 million in funding for the National Wildlife Corridors Plan.

Expenses decreased in 2011–12 by $52.38 million mainly due to:

the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $59.91 million (2010–11: $59.65 million), partially offset by the increase in expenditure relating to the Clean Energy Future–Biodiversity Fund, Environmental Stewardship Program and the National Wildlife Corridors Plan.

Outcome 2

Income increased in 2011–12 by $0.93 million mainly due to:

a $3.49 million reduction in income following the transfer of the Housing Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the transfer of the Housing Supply Policy function to the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011

an increase in funding of $1.89 million to support the Sustainable Population Policy function assumed from the Department of the Treasury, due to a restructuring of administrative arrangements on 14 September 2010

an increase of $2.01 million for the funding of the Sustainable Australia–Suburban Jobs initiative.

Expenses decreased by $2.18 million in 2011–12 mainly due to:

a $6.70 million reduction in expenses following the transfer of the Housing Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the transfer of the Housing Supply Policy function to the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011

a $2.63 million increase in expenses relating to the Sustainable Population Policy function assumed from the Department of the Treasury, due to a restructuring of administrative arrangements on 14 September 2010.

Outcome 3

Income increased in 2011–12 by $19.49 million mainly due to increased services provided to the Department of Immigration and Citizenship.

Expenses increased in 2011–12 by $92 million mainly due to:

an increase of $56.40 million in relation to the Antarctic make good provision and base restitution liability, primarily resulting from the reduction in the Australian Government bond rate used in the long term forecast

a $27.15 million increase in costs resulting from increased operational activity

increased depreciation costs of $2.48 million on buildings and other infrastructure.

Outcome 4

Income increased in 2011–12 by $57.76 million mainly due to:

Expenses increased in 2011–12 by $55.91 million mainly due to:


an increase of $49.49 million to support the newly created Office of Water Science, of which $15.0 million has been transferred to the forward estimates

an increase of $18.74 million for the Commonwealth’s contribution to the Murray–Darling Basin Authority.

costs of $29.3 million incurred in relation to the Office of Water Science, Coal Seam Gas initiative

a contribution of $18.74 million to the Murray–Darling Basin Authority.

Outcome 5

Income increased in 2011–12 by $46.28 million due to the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $55.85 million (2010–11: $52.70 million), offset by the transfer of the Arts and Culture function to the Department of Prime Minister and Cabinet in February 2011.

Expenses increased in 2011–12 by $53.03 million mainly due to:

the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $59.91 million (2010–11: $59.65 million), offset by expenditure relating to the Arts and Culture function, that was transferred to the Department of Prime Minister and Cabinet in February 2011

an increase in funding of $1.59 million for the Kokoda Initiative.

Financial performance of administered activities

The financial performance of the department’s administered activities for 2011–12 is summarised in the table below. Administered items are assets, liabilities, revenues and expenses that are controlled by the government but managed or overseen by the department on behalf of the government.

Table 18: Administered financial performance

Administered 2011–12 Actuals $’000 2010–11 Actuals $’000 Variance $’000

Outcome 1 Income 877 7338 (6461)

Expenses 316 024 296 085 19,939

Surplus/(Deficit) (315 147) (288 747) (26 400)

Outcome 2 Income 12 062 5060 7002

Expenses 89 692 45 824 43 868

Surplus/(Deficit) (77 630) (40 764) (36 866)

Outcome 3 Income - - -

Expenses 12 11 1

Surplus/(Deficit) (12) (11) (1)

Outcome 4 Income 64 794 19 691 45 103

Expenses 469 958 524 118 (54 160)

Surplus/(Deficit) (405 164) (504 427) 99 263

Outcome 5 Income 560 2351 (1791)

Expenses 12 612 151 304 (138 692)

Surplus/(Deficit) (12 052) (148 953) 136 901

Total Administered Income 78 293 34 440 43 853

Expenses 888 298 1 017 342 (129 044)

Surplus/(Deficit) (810 005) (982 902) 172 897

Notes:



Variance The difference between the actual results for 2011–12 and 2010–11 (i.e. 2011–12 Actuals minus 2010–11 Actuals).

Table 19: Comparison of administered financial performance with previous year


Outcome 1

The decrease by $6.46 million in income in 2011–12 was primarily the result of:

a one-off grant repayment of $4 million under the Great Barrier Reef Marine Park Structural Adjustment package that occurred in 2010–11

a decrease in grant repayments of $0.8 million following the termination of the Community Water Grants program

a decrease of $1.9 million in grant repayments under Caring for our Country–Natural Heritage Trust.

The increase by $19.94 million in expenses in 2011–12 was the net result of movements in several grant programs including:

an increase of $33.8 million under the Biodiversity Fund

a decrease of $22.1 million in suppliers and grants expense under Caring for our Country–Natural Heritage Trust

an decrease of $0.4 million under the Caring for our Country–Environmental Stewardship Program

an increase of $9.8 million under Caring for our Country–Working on Country

a decrease of $1.2 million under the Tasmanian Forests program.

Outcome 2

Income increased by $7 million in 2011–12 due to increased receipts for the following items into the Ozone Protection and Synthetic Greenhouse Gas special account:

an increase of $6.2 million in permit fees received from industry boards for Refrigeration & Air Conditioning (RAC) and Fire Protection industry permits

an increase of $2.6 million from application fees for licences granted under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. These fees are paid bi-annually

an increase of $0.2 million in import levies collected under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.

The increase is partially offset by a $2.2 million decrease generated by the one-off return in 2010–11 of grant funding under the

The increase by $43.87 million in 2011–12 was primarily the result of:

a $37.6 million increase under the Housing Affordability Fund program and a $1.3 million increase under the National Rental Affordability Scheme. These programs were transferred to the department from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) following a restructuring of administrative arrangements on 14 September 2010. The programs were transferred back to FaHCSIA following a subsequent restructuring of administrative arrangements on 14 December 2011

a $4.6 million increase in expenditure from the Ozone Protection and Synthetic Greenhouse Gas special account.


Housing Affordability Fund program.

Outcome 3

Not applicable. This item represents depreciation of the Antarctic Heritage Collection.

Outcome 4

The increase by $45 million in income in 2011–12 was the result of:

an increase of $1.6m in contributions to the Water Efficiency Labelling and Standards special account from State and Territory governments

an increase of $7.4m relating to water entitlements received under the Sustainable Rural Water Use and Infrastructure Program for which the initial grant payment was a Specific Purpose Payment made by the Department of the Treasury

a one-off grant repayment of $6.4m under the Water Smart Australia program that occurred in 2011–12

An increase of $3.7m from the reversal of previous impairments of jointly controlled assets held in the Living Murray Initiative joint venture

An increase of $26.1m associated with the recognition of jointly controlled assets in the River Murray Operations joint venture.

The decrease by $54.16 million in 2011–12 was primarily the result of:

a $109.6m decrease in impairment losses recognised on water entitlement assets, in 2011–12 impairments of $74.3m were recognised (2010–11: $183.9m)

a $132.5m decrease in expenditure on grants under the Water Smart Australia program

a $42.9m increase in expenditure on grants under the National Urban Water and Desalination Plan

a $46.5m increase in expenditure under the National Water Security Plan for Cities and Towns

a $12.5m decrease in expenditure under the Restoring the Balance in the Murray Darling Basin program

a $111.3m increase in expenditure under the Sustainable Rural Water Use and Infrastructure Program

A $3.5m increase in expenditure from the Environmental Water Holdings special account A $2.1m decrease under the National Rainwater and Greywater initiative A $2.8m decrease under the Green Precincts program A $1m increase in expenditure from the Water Efficiency Labelling and Standards special account.

Outcome 5

The decrease by $1.79 million in 2011–12 was the result of the transfer of arts and culture functions to the Department of Prime Minister and Cabinet in February 2011. Programs under these functions recorded income of $1.7m in 2010–11.

The decrease by $138.69 million in 2011–12 was the result of:

the transfer of arts and culture functions to the Department of Prime Minister and Cabinet in February 2011. Programs under these functions incurred expenses of $136.9m in 2010–11

a decrease of $2.9m following the termination of the Jobs Funds–Heritage Projects to Support Local Jobs program

a $2.3m decrease in expenses under the Kokoda Initiative

an increase of $3.4m from the new Your Community Heritage program announced at Budget 2011–12.

Financial positionTable 20: Departmental financial position

2011–12 2010–11 Variance

$’000 $’000 $’000

Total assets 510,359 518,163 (7,804)

Total liabilities 552,465 425,572 126,893

Total equity (42,106) 92,591 (134,697)

Total assets

During 2011–12 the total asset base controlled by the department, decreased by $7.8 million to $510.4 million. The decrease is mainly attributable to depreciation on buildings, property, plant and equipment.

Total liabilities

Total liabilities managed by the department increased by $126.9 million during 2011–12, to $552.5 million as at 30 June 2012, mainly due to the change in the long term discount rates used to calculate the department’s provisions. This had a major impact on the department’s restoration obligations in relation to the Australian Antarctic Territory which increased by $113.2 million and the employee provisions which increased by $13.7 million.

Total equity

Primarily as a result of the increase in provisions, the department ended the year with total liabilities exceeding total assets. This is reflected in the shortfall in total equity of $42.1 million. This does not make the department insolvent and has no bearing on whether the department’s debts will be paid, as the department is part of the legal entity that is the Australian Government, which is ultimately responsible for all the department’s debts. Further detail is provided in the department’s 2011–12 financial statements at Note 1.23.

Asset management

The department’s assets are located throughout Australia, with the majority located in the Australian Antarctic Territory and managed by the Australian Antarctic Division. The Australian Antarctic Division manages and maintains Australia’s Antarctic stations, Casey, Davis and Mawson and a research station on sub-Antarctic Macquarie Island. The Australian Antarctic Division has in place an asset management plan for each station.

Appendix 1—Workforce profile The department has a diverse workforce, carrying out a range of responsibilities across Australia, Australia’s external territories and Antarctica.

The department’s workforce statistics are presented in the tables on the following pages. All statistics are as at 30 June 2012.

Table 1: Job classifications

Key to job classification symbols in the tables on workforce statistics

Secretary Secretary of the department.

PEO Principal Executive Officer. Refers to the Director of National Parks, a statutory office holder.

SES 1–3 Senior Executive Service bands 1–3. Includes Chief of Division, Australian Antarctic Division.

EL 1–2 Executive Level bands 1–2.

APS 1–6 Australian Public Service levels 1–6. Includes graduate, school leaver and cadet recruits.

RS 1–3 Research Scientist (equivalent to APS 6 or EL 1) and Senior Research Scientist, Principal Research Scientist and Senior Principal Research Scientist (equivalent to EL 2).

AMP 1–2 Antarctic Medical Practitioner levels 1–2 (equivalent to EL 1 or EL2).

AE 1–4 Antarctic Expeditioner bands 1–4 (equivalent to APS 2 to EL 2).

LO 1–3 Legal Officer (equivalent to APS 3–6), Senior Legal Officer (equivalent to EL 1) and Principal Legal Officer (equivalent to EL 2).

PAO 1–4 Public Affairs Officer 1–2 (equivalent to APS 4–6), Public Affairs Officer 3 (equivalent to EL 1) and Senior Public Affairs Officer (equivalent to EL 2).

Table 2: Job classification, gender, location

Location Gender Classification Total

SECRETARY PEO SES 1-3

EL 1-2

APS 1-6

RS 1-3

AMP 1-2

AE 1-4

LO 1-3

PAO 1-4

ACT Female 27 454 822 15 31 1349

Male 1 1 34 367 378 1 6 12 800

Antarctica Female 3 7 10

Male 3 43 46

Indian Ocean Female 9 9

Male 1 23 24

Jervis Bay Female 4 9 13

Male 4 16 20

New South Wales

Female 4 2 6

Male 2 1 3

Norfolk Island Female 3 3

Male 6 6

Northern Territory

Female 1 16 133 4 154

Male 2 18 137 8 165

Queensland Female 1 1 2

Male 9 1 10

South Australia Female

Male 3 3

Tasmania Female 29 104 6 2 2 143

Male 5 45 120 31 4 205

Victoria Female 1 2 3

Male 4 4

Western Australia

Female 3 2 5

Male 4 4

Total 1 1 69 969 1769 50 10 50 23 45 2987

Table 3: Full-time employees under the Public Service Act 1999

Non-ongoing Ongoing Total by gender Total

Female Male Sub total Female Male Sub total Female Male

Parks Australia Division 25 18 43 106 137 243 131 155 286

Department-all other divisions 100 122 222 1044 832 1876 1144 954 2098

Total 125 140 265 1150 969 2119 1275 1109 2384

Table 4: Part-time employees under the Public Service Act 1999

Non-ongoing Ongoing Total by gender Total

Female Male Sub total Female Male Sub total Female Male

Parks Australia Division 87 86 173 29 5 34 116 91 207

Department-all other divisions 36 18 54 270 70 340 306 88 394

Total 123 104 227 299 75 374 422 179 601

Note: These statistics do not include the Secretary or the Principal Executive Officer.

Appendix 2—Occupational health and safety

Work health and safety

The department is committed to providing a safe and healthy workplace for all its employees, contractors, third parties and visitors, in accordance with the Occupational Health and Safety Act 1991 (OHS Act) and Work Health and Safety Act 2011 (WHS Act).

The department’s Health and Safety Management Arrangements (HSMA) set out how the department should meet its commitment under the OHS Act. On 1January2012 the HSMA was replaced with policies and procedures to support the person conducting the business or undertaking, officers, workers, health and safety representatives and managers to comply with the WHS Act.

All employees are encouraged to report hazards and incidents in the workplace. Paper- based reporting has been replaced with online reporting via the department’s HR system. The department reports on hazard and incident data to senior management forums and to the health and safety committees.

Where incidents do occur, the department assists ill and injured employees to return to work in a safe work environment. This is in accordance with the department’s fitness for duty and rehabilitation policy and guidelines.

Health and safety initiatives

The focus for 2011–12 was to ensure legislative compliance and to promote a safe and healthy workforce.

The department was involved in:

implementation of the WHS Act through a project plan, reported to a range of forums developing and reviewing internal policies and procedures to ensure they are up to date and address any new or

emerging hazards establishing policy and guidelines on the management of workplace aggression supporting members of health and safety committees at all levels in their role funding influenza vaccinations and health assessments for employees conducting the 10000 step challenge and the centenary walk across Antarctica to encourage greater physical

activity providing skin cancer awareness seminars promoting the use of the Employee Assistance Program, a counselling service for employees and their

immediate families provided at no cost to employees using the panel of external providers to conduct workstation assessments and/or lighting assessments for

employees experiencing discomfort supporting ill or injured employees and their managers when a work or non-work-related injury or disease has

affected a staff member’s attendance at work or ability to perform in the workplace supporting health and safety representatives and first aid officers in their role through regular meetings supporting initiatives to improve health and wellbeing including access to gyms, yoga, carpool and ride to

work programs

providing online learning on the WHS Act implementing a new hazard and incident reporting system using the department’s HR system improving the presence of WHS on the department’s intranet in accordance with the 2010–11 internal audit

findings.

Workers compensation premium

In 2011–12 the workers compensation premium rate for the department was 1.61 per cent. This was due to:

a revision of the 2010–11 premium from 1.73 to 1.52 per cent reflecting the development of claims for injuries suffered in 2007, 2008 and 2009

the early development of 2010 claims indicating a higher estimated lifetime cost for injuries suffered in 2010 compared to 2009

trends within other agencies the total amount that Comcare needs to collect from all agencies combined.

The department has reviewed its cases in 2011–12 ensuring active intervention in longer term cases and taking early action to reduce the number and cost of claims received during the year. The department has worked closely with Comcare to proactively manage those cases.

Notifiable incidents

Under section 68 of the OHS Act, certain incidents are notifiable to Comcare within specific time frames. The following table details the incidents that were notified in 2011–12.

Table 1: Notifiable incidents under the OHS Act

Notice type Canberra workplaces

Parks Australia

Australian Antarctic Division (AAD)

Supervising Scientist Division (SSD)

Death 0 0 0 0

Serious personal injury 0 1 3 0

Dangerous occurrence 0 0 5 0

Incapacity longer than 30 working days/shifts

0 0 0 0

Under Part 3 of the WHS Act effective 1 January 2012, certain incidents are notifiable to Comcare. The following table details the incidents notified in 2011–12.

Table 2: Notifiable incidents under the WHS Act

Notice type Canberra workplaces

Parks Australia

Australian Antarctic Division (AAD)

Supervising Scientist Division (SSD)

Death 0 0 0 0

Serious injury or illness

1 4 3 0

Dangerous incident 0 0 5 0

Details of notices

There were no provisional improvement notices issued under section 29 of the OHS Act. There were no notices issued under section 46 of the OHS Act. There were no notices issued under section 47 of the OHS Act.

There were no provisional improvement notices issued under part 5, division 7, section 90 of the WHS Act. There were no notices issued under part 10, division 1, 2 or 3 of the WHS Act.

Investigations conducted by Comcare

Comcare investigators followed up issues with multiple site visits, requests for additional information and reports at the Australian Antarctic Division Kingston depot, Tasmania, following an audit conducted at the same facility in 2009–10.

Comcare is working with Parks Australia on a consultative compliance program to improve health and safety within the Parks environment.

Appendix 3—Grants programs

Outcome 1 Biodiversity and Ecosystems

Sustainable Management of Natural Resources and the Environment

Caring for our Country–Natural Heritage Trust Caring for our Country–Environment Stewardship Program Caring for our Country–Working on Country National Wildlife Corridors Plan Tasmanian Forests Statement of Principles Process-support Coral Triangle Initiative Grants to Voluntary Environment, Sustainability and Heritage Organisations

Environmental Information and Research

National Environment Research Program Community Infrastructure Grants International Whale Science Initiative Australian Biological Resources Study National Taxonomy Research Grant Program BushBlitz Strategic Taxonomy Grant Scheme

Carbon Pollution Reduction–Land Sector Initiatives

Biodiversity Fund

Outcome 2 Sustainable Population and Communities

Sustainable Communities

Sustainable Australia–Suburban Jobs

Outcome 3 Antarctica

Antarctica: Science, Policy and Presence

Australian Antarctic Science Research Grants Program

Outcome 4 Sustainable Water

Water Reform

Restoring the Balance in the Basin Program Sustainable Rural Water Use and Infrastructure Program National Urban Water and Desalination Plan National Rainwater and Greywater Initiative National Water Security Plan for Cities and Towns Green Precincts Murray Environmental Flows Water Smart Australia

Outcome 5 Environmental Protection and Heritage Conservation

Conservation of Australia’s Heritage and Environment

Indigenous Heritage Program National Trusts Partnership Program Your Community Heritage

Environmental Regulation

Sustainable Australia–Sustainable Regional Development

Other

Housing Affordability Fund–transferred to the Department of Families, Housing, Community Services and Indigenous Affairs during the year.

Appendix 4—Advertising and marketing expenditure This section is presented in accordance with the requirements of section 311A of the Commonwealth Electoral Act 1918.

During 2011–2012, the department did not conduct any advertising campaigns.

Table 1: Advertising and market research expenditure

Advertising – nil to report Market research

Agency Purpose Expenditure $ (GST inclusive)

Colmar Brunton Policy input into Australia’s Biodiversity Conservation Strategy 2010–2030

57 519

Total 57 519

Public relations

Education Services Australia Ltd

To develop four teaching units on water relating to the wet tropics, the Murray-Darling Basin, the Great Artesian Basin, and Lake Eyre.

52 000

Total 52 000

Polling organisations – nil to report

Direct mail – nil to report

Media advertising

Agency Purpose Expenditure $ GST inclusive

Adcorp Placement of non-campaign advertising in the media. 1 038 148

Universal McCann Placement of campaign-related advertising in the media.** 82 127

Total 1 120 275

Note: ** This advertising is for the Water Efficiency Labelling Scheme. Whilst such advertising was classified as operational by the Department of Finance and Deregulation (in its determination on 4June2010), it falls within the scope of the Guidelines on information and advertising campaigns by Australian Government departments and agencies (March 2010) and should be listed.

Appendix 5—Freedom of information Agencies subject to the Freedom of Information Act 1982 (the FOI Act) are no longer required to publish an annual report statement pursuant to former section 8 of the FOI Act.

Former subsection 8(1) of the FOI Act set out the information which was previously published and updated each year in annual reports. This reporting requirement included preparation of a statement:

setting out the particulars of the organisation and its functions setting out the arrangements by which any person or bodies outside the Commonwealth administration could

participate in policy formulation or in the administration by the agency identifying the categories of documents that are held by the department and how members of the public could

get physical access to documents held by the agency advising the procedures for gaining access to documents.

Agencies are now required to publish similar information to the public as part of the Information Publication Scheme (IPS). This requirement is contained in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report.

The department’s agency plan showing what information is published in accordance with the IPS requirements is accessible from the department’s website at <www.environment.gov.au/foi/ips.html>.

Information which would previously have been found in the department’s section 8 statement can now be found on the department’s website <www.environment.gov.au/foi/index.html>.

Procedures for gaining access to information

Freedom of information matters within the department are handled by the Legal Section in the Policy and Communications Division. Contact details for the Freedom of Information Coordinator are:

Phone: 02 6275 9207 Fax: 02 6274 2837 Email: [email protected]

Written requests for access to documents should be addressed to:

Freedom of Information Contact Officer Legal Section Policy and Communications Division Department of Sustainability, Environment, Water, Population and Communities GPO Box 787 Canberra ACT 2601

Appendix 6—Corrections to material errors in 2010–11 annual reportTable 3 of Appendix 1 of the 2010–11 annual report contains errors in the number of:

ongoing male employees in Parks Australia Division should read 144 and not 145 ongoing male employees in the department (all other divisions) should read 790 and not 791 total male ongoing employees should read 934 and not 936 total employees should read 2313 and not 2315 The following note, which explains the difference in total employee numbers between Table 2 and Tables 3

and 4, was incorrectly omitted:

Note: These statistics do not include the Secretary or the Principal Executive Officer.

Appendix 7—Global Reporting InitiativeThe Global Reporting Initiative (GRI) was founded in 1997 and aims to fulfil the need for open, transparent communication about sustainability issues by providing a consistent and credible framework for organisations to report on their economic, environmental and social impacts.

The department is participating in a pilot of sustainability reporting using the GRI framework as a base for reporting. For the purposes of the pilot GRI indicators have been selected for reporting based on their relevance and applicability in the context of the operations of Australian Government entities. As this is a pilot of sustainability reporting using selected GRI indicators, specific, independent assurance of reporting has not been undertaken. Further information on the GRI indicators is available at <www.globalreporting.org>.

Table 1: GRI indicators index

(G3) GRI indicator

GRI indicator description Level of disclosure

Page reference

Strategy and analysis

1.1 Statement from the most senior decision maker of the organisation about the relevance of sustainability to the organisation and its strategy.

Full 300

Organisational profile

2.1 Name of organisation. Full 1

2.2 Primary brands, products or services. Full 11–12

2.3 Operational structure of the organisation. Full 11–14

2.4 Location of organisations headquarters. Full 1

2.5 Locations of operations. Full 313–336

2.8 Scale of organisation. Full 14, 363

2.9 Significant changes during the reporting period regarding size, and structure. Full 15

Report parameters

3.1 Reporting period of information provided. Full 5

3.3 Reporting cycle. Full 5

3.4 Contact point for questions regarding the report or its contents. Full 7

Report scope and boundary

3.5 Process for defining report content. Full 543–547

3.6 Boundary of the report. Full 5–7

(G3) GRI indicator


Page reference

3.7 State any specific limitations on the scope or boundary of the report. Full 6–7

3.9 Data measurement techniques and the basis of calculations. Partial 6–7

3.12 Table identifying the location of the standard disclosures in report. Full 543–547

Governance

4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks.

Full 300–303

4.7 Process for determining composition, qualifications and expertise of highest governance body.

Full 300–303

4.8 Mission or value statements, codes of conduct, and principles relevant to sustainability performance and the status of their implementation.

Full 300, 310–312

4.9 Procedures for highest governance body for overseeing the organisations identification and management of sustainability performance.

Partial 300–302

4.10 Processes for evaluating the highest governing body’s own performance. Full 300–302

Economic performance

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments.

Full 394–532

EC4 Coverage of an organisations defined benefit plan obligations. Full 339

Human rights reporting

HR3 Total hours of employees training on policies and procedures concerning aspects of human rights that are relevant to operations, including percentage of employees trained.

Not reported

Employment

LA1 Total workforce by employment type, employment contract and region, broken down by gender.

Full 363

LA2 Total number and rate of new employee hires and turnover by age, gender and region.

Full 363

Labour/management relations

LA4 Percentage of employees covered by collective bargaining agreements. Full 339

Occupational health and safety

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advice on OHS programs.

Full 367–369

LA7 Rates of injury, occupational diseases, lost days and absenteeism and number of work related fatalities by region and gender.

Partial 367–369

Training and education

LA10 Average hours of training per year per employee by gender and employment category.

Not reported

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them manage career endings.

Partial 339–340

LA12 Percentage of employees receiving regular performance and career development reviews by gender.

Full 339–340

Diversity and equal opportunity

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group

Partial 363–366

(G3) GRI indicator


Page reference

membership and other indicators of diversity.

Corruption

SO2 Percentage and total number of business units analysed for risks related to corruption.

Not reported

SO3 Percentage of employees trained in organisations anti corruption policies and procedures.

Not reported

Materials

EN1 Materials used by weight or volume. Partial 315–336

EN2 Percentage of materials used that are recycled input materials. Partial 315–336

Energy

EN3 Direct energy consumption by primary source. Full 315–336

EN4 Indirect energy consumption by primary source. Full 315–336

EN5 Energy saved due to conservation and efficiency improvements. Partial 315–336

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Partial 313–336

Water

EN8 Total water withdrawal by source. Full 315–336

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected area and areas of high biodiversity value outside protected areas.

Full 204–297

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Full 204–297

EN13 Habitats protected or restored. Full 204–297

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

Full 204–297

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

Partial 204–297

Emissions, effluent and waste

EN16 Total direct and indirect greenhouse gas emissions by weight. Partial 315–336

EN17 Other relevant indirect greenhouse gas emissions by weight. Partial 315–336

EN18 Initiatives to reduce indirect greenhouse emissions and reductions achieved. Full 315–336

EN22 Total weight of waste by type and disposal method. Partial 315–336

Transport

EN29 Significant environmental impacts of transporting products and other goods, and transporting members of the workforce.

Partial 315–336

Appendix 8—Agency Resources Statement 2011–12

Actual available appropriation for 2011–12

Payments made 2011–12

Balance remaining 2011–12

$’000 $’000 $’000

(a) (b) (a)–(b)

Ordinary annual services1 Departmental appropriation

Prior year departmental appropriation 66 936 66 936 -

Departmental appropriation2 455 396 388 464 66 932

Payment to CAC Act bodies3 41 485 41 485 -

s31 Relevant agency receipts4 91 576 91 576 -

Total 655 393 588 461 66 932

Administered expenses1

Outcome 1–Biodiversity and Ecosystems 316 764 288 709

Outcome 2 - Sustainable Population and Communities

58 397 58 302

Outcome 4 - Sustainable Water 472 995 433 019

Outcome 5 - Environmental Protection and Heritage Conservation

12 607 11 452

Payments to CAC Act bodies - -

Total 860 763 791 482

Total ordinary annual services A 1 516 156 1 379 943

Actual available appropriation Payments made Balance remaining

for 2011–12 2011–12 2011–12

$’000 $’000 $’000

(a) (b) (a)–(b)

Other services5

Administered expenses

Specific payments to States, ACT, NT and local government

Outcome 4–Sustainable Water 10 054 7247

Outcome 5–Environmental Protection and Heritage Conservation

800

Total 10 854 7247

Departmental non-operating5

1 Appropriation Bill (No.1 & 3) 2011–20122 Includes an amount of $23.479 million in 2012–13 for the Departmental Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.3 As per the Environment Protection and Biodiversity Conservation Act 1999 Section 514S, the department is directly appropriated the Director of National Parks’s (DNP) appropriations, which is then allocated to the DNP by the Secretary4 FMA Act s31 receipts, also known as FMA Regulation 15 receipts, are an estimate.1

5

Equity injections 1545 709

Payments to CAC Act bodies–non-operating

- -

Total 1545 709

Administered non-operating5

PY Administered assets and liabilities 601 528 396 972

Administered assets and liabilities 410 889 145 824

Payments to CAC Act bodies– non-operating

- -

Total 1 012 417 542 796 469 621

Total other services B 1 024 816 550 752

Total Available annual

Appropriations and Payments 2 540 972

Actual available appropriation Payments made Balance remaining

for 2011–12 2011–12 2011–12

$’000 $’000 $’000

(a) (b) (a)–(b)

Special Accounts6

Opening balance 440 113

Appropriation receipts 191 378

Non-appropriation receipts to Special Accounts

37 498

Payments made 219 512

Total Special Account C 668 989 219 512 449 477

Total resourcing

A+B+C 3 209 961 2 150 207

Less appropriations drawn from

annual or special appropriations above

and credited to special accounts 191 378 191 378

and/or CAC Act bodies through

annual appropriations 41 485 41 485

Total net resourcing for DSEWPaC 2 977 098 1 917 344

55 Appropriation Bill (No.2 & 4) 2011–2012.66 Does not include ‘Special Public Money’ held in accounts such as Services for Other Entities and Trust Moneys account as they do not constitute funds available to the department for operations.

Appendix 9—Expenses for Outcome

Expenses for Outcome 1

Outcome 1: The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.

Budget R̽ Actual Expenses

Variation

2011–12

2011–12 2011–12

$’000 $’000 $’000

(a) (b) (a)–(b)

Program 1.1: Sustainable Management of Natural Resources and the Environment


Ordinary annual services (Appropriation Bill No. 1) 68 518 68 444 74

Special accounts 191 378 191 249 129

Departmental expenses

Departmental appropriation1 79 147 81 125 (1978)

Expenses not requiring appropriation in the Budget year 1383 892 491

Total for Program 1.1 340 426 341 710 (1284)





Departmental appropriation1 58 617 53 244 5 3732

Expenses not requiring appropriation in the Budget year 1849 1 663 186

Total for Program 1.2 86 030 80 046 5984

Program 1.3: Carbon Pollution Reduction –Land Sector Initiatives




Departmental appropriation1 7660 6864 796



Outcome 1 Totals by appropriation type



Special accounts 191 378 191 249 129

c̽ c̽ Full year budget, including any subsequent adjustment made to the 2011–2012 Budget.1 Departmental appropriation combines Ordinary annual services (Appropriation Bill No. 1) and Revenue from independent sources (s31).12 The variation is mainly due to lower expenditure in relation to environmental information and research activity.2

1


Budget Actual Expenses

Variation


Departmental appropriation1 145 424 141 233 4191


Total expenses for Outcome 1 465 556 459 815 5741

2011–12

Average staffing level (number) 521

11 Departmental appropriation combines Ordinary annual services (Appropriation Bill No. 1) and Revenue from independent sources (s31).


Outcome 2: Improved sustainability of Australia’s population, communities and environment through coordination and development of sustainable population and communities policies, supporting affordable housing and the reduction and regulation of waste, pollutants and hazardous substances.

Budget R̽ R

Actual Expenses

Variation

2011–12

2011–12 2011–12

$'000 $'000 $'000

(a) (a)–(b)

Program 2.1: Management of Hazardous Wastes, Substances and Pollutants


Ordinary annual services (Appropriation Bill No. 1) 2049 2036 13

Special accounts 13 628 8416 52121





Program 2.2: Affordable Housing


Ordinary annual services (Appropriation Bill No. 1) 56 348 79 240 (22,892)3



Expenses not requiring appropriation in the Budget year 220 - 220

Total for Program 2.2 64 321 83 242 (18 921)

Program 2.3: Sustainable Communities




Total for Program 2.3 4050 2626 1424



Ordinary annual services (Appropriation Bill No. 1) 58 397 81 276 (22,879)

c̽ c̽ Full year budget, including any subsequent adjustment made to the 2011–2012 Budget.1 The variation is mainly due to lower expenditure compared to the budget from the Ozone & Synthetic Greenhouse Gas Special Account in relation to the management of hazardous wastes, substances and pollutants. 2 Departmental appropriation combines Ordinary annual services (Appropriation Bill No. 1) and “Revenue from independent sources (s31).3 Increase under the Housing Affordability Fund program and the National Rental Affordability Scheme. These programs were transferred to the Department from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) following a restructuring of administrative arrangements on 14 September 2010. The programs were transferred back to FaHCSIA following a subsequent restructuring of administrative arrangements on 14 December 2011.2

2


BudgetR Actual Expenses

Variation

Special accounts 13 628 8416 5212




Total expenses for Outcome 2 131 707 140 841 (9134)

2011–12


Outcome 3: Advancement of Australia’s strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.


Variation

2011–12

2011–12 2011–12

$'000 $'000 $'000

(a) (b) (a)–(b)

Program 3.1: Antarctica: Science, Policy and Presence


Expenses not requiring appropriation in the Budget year - 12 (12)


Departmental appropriation1 112 845 141 636 (28 791)2

Expenses not requiring appropriation in the Budget year 48 368 104 369 (56 001)3

Total for Program 3.1 161 213 246 017 (84 804)



Expenses not requiring appropriation in the Budget year - 12 (12)


Departmental appropriation1 112 845 141 636 (28 791)

Expenses not requiring appropriation in the Budget year 48 368 104 369 (56 001)

Total expenses for Outcome 3 161 213 246 017 (84 804)

2011–12



2

c̽ c̽ Full year budget, including any subsequent adjustment made to the 2011–2012 Budget.1 Departmental appropriation combines Ordinary annual services (Appropriation Bill No. 1) and Revenue from independent sources (s31).2 Increased operational activity.3 Increase in the Antarctic make good provision and base restitution liability, primarily resulting from the reduction in the Australian Government bond rate used in the long term forecast.1

Outcome 4: Adaptation to climate change, water wise use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources.


Variation

2011–12

2011–12 2011–12

$'000 $'000 $'000

(a) (b) (a)–(b)



Ordinary annual services (Appropriation Bill No. 1) 452 495 431 821 20 6741

Other services (Appropriation Bill No. 2) 10 054 9130 924

Special accounts 23 130 12 098 11 0322

Expenses not requiring appropriation in the Budget year - 16 909 (16 909)3


Departmental appropriation4 121 114 133 287 (12 173)5





Ordinary annual services (Appropriation Bill No. 1) 452 495 431 821 20 674

Other services (Appropriation Bill No. 2) 10 054 9130 924

Special accounts 23 130 12 098 11 032

Expenses not requiring appropriation in the Budget year - 16 909 (16 909)


Departmental appropriation4 121 114 133 287 (12 173)


Total expenses for Outcome 4 610 442 606414 4028

2011–2012



Outcome 5: Increased protection, awareness and appreciation of Australia’s Budget R̽ Actual Variation

c̽ c̽ Full year budget, including any subsequent adjustment made to the 2011–12 Budget.1 The variation is mainly due to Water Smart Australia projects being finalised below budget in 2011–12.2 The variation is mainly due to lower expenditure from the Environmental Water Holdings Special Account in relation to environmental water delivery.3 Expenses not requiring appropriation include the adjustments for impairment on water entitlements, partially offset by the acquisition of water entitlements from the Sustainable Rural Water Use and Infrastructure Program.4 Departmental appropriation combines Ordinary annual services (Appropriation Bill No. 1) and Revenue from independent sources (s31).5 Expenses not requiring appropriation include the adjustments for impairment on water entitlements, partially offset by the acquisition of water entitlements from the Sustainable Rural Water Use and Infrastructure Program.

4

environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, indigenous and historic places of national and World Heritage significance.

Expenses

2011–12

2011–12 2011–12

$'000 $'000 $'000

(a) (b) (a)–(b)

Program 5.1: Conservation of Australia's Heritage and Environment


Ordinary annual services (Appropriation Bill No. 1) 12 607 12 612 (5)





Program 5.2: Environmental Regulation


Other services (Appropriation Bill No. 2) 800 - 800


Departmental appropriation1 56 238 56 972 (734)





Ordinary annual services (Appropriation Bill No. 1) 12 607 12 612 (5)

Other services (Appropriation Bill No. 2) 800 - 800




Total expenses for Outcome 5 123 439 121 531 1908

2011–12


c̽ c̽ Full year budget, including any subsequent adjustment made to the 2011–12 Budget.6 Departmental appropriation combines Ordinary annual services (Appropriation Bill No. 1) and Revenue from independent sources (s31).1

1


Financial Statementsfor the period ended 30 June 2012

Department of Sustainability, Environment, Water, Population and CommunitiesSTATEMENT BY THE SECRETARY AND CHIEF FINANCE OFFICER

In our opinion, the attached financial statements for the year ended 30 June are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

Signed………………………………………….. Signed…………………………………………..

Dr Paul Grimes Lily ViertmannSecretary Chief Finance Officer

30 August 2012 30 August 2012

Statement of Comprehensive Income forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2012

2012 2011 Notes $'000 $'000EXPENSES Employee benefits 3A 262,310 247,960Supplier 3B 258,156 179,087Grants 3C 7,914 7,117Transfer funding 3C 41,485 46,444Depreciation and amortisation 3D 42,652 40,936Finance costs 3E 16,654 17,440Write-down and impairment of assets 3F 593 699Other expenses 3G 56,556 65Total expenses 686,320 539,748 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 4A 86,137 63,362Other revenue 4B 4,211 8,581Total own-source revenue 90,348 71,943 Gains Sale of assets 4C 101 179Reversals of previous asset write-downs and impairments 4D 30 278Other gains 4E 794 3,999Total gains 925 4,456Total own-source income 91,273 76,399 Net cost of services 595,047 463,349 Revenue from Government 4F 466,251 404,976Deficit attributable to the Australian Government (128,796) (58,373) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus (36,883) 88,696Total other comprehensive income (36,883) 88,696 Total comprehensive income (loss) attributable to the Australian Government (165,679) 30,323

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

Balance Sheet forDepartment of Sustainability, Environment, Water, Population and Communitiesas at 30 June 2012

2012 2011 Notes $'000 $'000ASSETS Financial Assets Cash and cash equivalents 5A 5,468 5,770Trade and other receivables 5B 78,096 80,731Other financial assets 5C 3,842 4,809Total financial assets 87,406 91,310 Non-Financial Assets Land and buildings 6A/D 269,384 275,245Property, plant and equipment 6B/D 120,618 125,231Intangibles 6C/E 19,476 15,949Inventories 6F 7,754 6,259Other non-financial assets 6G 5,721 4,169Total non-financial assets 422,953 426,853 Total assets 510,359 518,163 LIABILITIES Payables Suppliers 7A 21,581 19,026Grants 7B 923 454Other payables 7C 25,135 27,939Total payables 47,639 47,419 Interest Bearing Liabilities Leases 8A 5,052 6,777Total interest bearing liabilities 5,052 6,777 Provisions Employee provisions 9A 72,111 58,407Other provisions 9B 427,663 312,969Total provisions 499,774 371,376 Total liabilities 552,465 425,572 Net assets 1.23 (42,106) 92,591 EQUITY Accumulated deficit (339,088) (210,320)Reserves 272,674 309,557Contributed equity 24,308 (6,646)Total equity (42,106) 92,591


Statement of Changes in Equity forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2012

Retained earningsAsset revaluation

surplusContributed

equity/capital Total equity 2012 2011 2012 2011 2012 2011 2012 2011 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Opening balance Balance carried forward from previous period (210,320) (169,442) 309,557 241,591 (6,646) 122,738 92,591 194,887Adjustment for errors 28 (1,000) - - - 28 (1,000)Adjustment for changes in accounting policies - (2,235) - - - - - (2,235)Adjusted opening balance (210,292) (172,677) 309,557 241,591 (6,646) 122,738 92,619 191,652Comprehensive income Other comprehensive income - - (36,883) 88,696 - - (36,883) 88,696Deficit for the period (128,796) (58,373) - - - - (128,796) (58,373)Total comprehensive income (128,796) (58,373) (36,883) 88,696 - - (165,679) 30,323of which:

Attributable to the Australian Government (128,796) (58,373) (36,883) 88,696 - - (165,679) 30,323Transactions with owners Distributions to owners Returns of capital:

Appropriation reductions - - - - (496) (5,886) (496) (5,886)Restructuring (Note 10A) - - - - 392 (153,795) 392 (153,795)

Contributions by owners Equity injection - Appropriations - - - 1,545 - 1,545 -Departmental capital budget - - - - 29,513 30,898 29,513 30,898Other - 20,730 - (20,730) - - - -Restructuring (Note 10A) - - - - - (601) - (601)Sub-total transactions with owners - 20,730 - (20,730) 30,954 (129,384) 30,954 (129,384)Closing balance as at 30 June (339,088) (210,320) 272,674 309,557 24,308 (6,646) (42,106) 92,591Closing balance attributable to the Australian Government (339,088) (210,320) 272,674 309,557 24,308 (6,646) (42,106) 92,591


Cash Flow Statement forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2012

2012 2011 Notes $'000 $'000OPERATING ACTIVITIES Cash received Appropriations 556,134 474,567Sales of goods and rendering of services 88,970 66,666Grants 331 1,656Net GST received 14,138 12,177Other 3,089 4,079Total cash received 662,662 559,145 Cash used Employees 247,790 241,647Suppliers 274,202 197,253Grants 7,445 7,325Transfer funding 41,485 46,444Section 31 receipts transferred to OPA 91,576 76,633Other 302 963Total cash used 662,800 570,265Net cash from (used by) operating activities 11 (138) (11,120) INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 545 408Total cash received 545 408 Cash used Purchase of property, plant and equipment 26,318 26,207Purchase of intangibles 7,425 3,183Total cash used 33,743 29,390Net cash from (used by) investing activities (33,198) (28,982) FINANCING ACTIVITIES Cash received Departmental capital budget 32,326 26,909Contributed equity 708 2,249Total cash received 33,034 29,158 Cash used Transfer to other entities - 2,249Transfer funding equity injection - 7,454Total cash used - 9,703Net cash from (used by) financing activities 33,034 19,455 Net increase (decrease) in cash held (302) (20,647)

Cash and cash equivalents at the beginning of the reporting period 5,770 26,417Cash and cash equivalents at the end of the reporting period 5A 5,468 5,770


Schedule of Commitmentsas at 30 June 2012 2012 2011 $'000 $'000BY TYPE Commitments receivable

Joint activity contributions (1,885) (2,128)Net GST recoverable on commitments (18,851) (16,900)

Total commitments receivable (20,736) (19,028) Commitments payable

Capital commitments1 Land and buildings 436 529Property, plant and equipment 6,519 9,655Total capital commitments 6,955 10,184Other commitments Operating leases2 159,754 154,004Project commitments3 2,540 2,544Other4 93,094 95,330Total other commitments 255,388 251,878

Total commitments payable 262,343 262,062Net commitments by type 241,607 243,034 BY MATURITY Commitments receivable

Other commitments receivable One year or less (8,642) (7,066)From one to five years (9,113) (9,442)Over five years (2,981) (2,520)Total other commitments receivable (20,736) (19,028)


Capital commitments One year or less 4,052 5,106From one to five years 2,903 5,078Total capital commitments 6,955 10,184Operating lease commitments One year or less 33,404 33,240From one to five years 93,722 93,046Over five years 32,628 27,718Total operating lease commitments 159,754 154,004Project commitments One year or less 1,747 1,758From one to five years 793 786Total project commitments 2,540 2,544Other commitments One year or less 55,094 44,790From one to five years 37,835 50,540Over five years 165 -Total other commitments 93,094 95,330

Total commitments payable 262,343 262,062Net commitments by maturity 241,607 243,034

Note: Commitments are GST inclusive where relevant.

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

Schedule of Commitmentsas at 30 June 20121. Capital commitments relate to contractual payments for new assets and assets under construction.

2. Operating leases are effectively non-cancellable and include:

Nature of lease General description of leasing arrangementsLeases for office accommodation Lease payments are subject to increases in

accordance with terms as negotiated under the lease.

The Department's leases for office accommodation generally have options for renewal. Future options not yet exercised are not included as commitments.

Leases for transportation to and within the Antarctic Territory

Lease payments are subject to increases in accordance with terms as negotiated under the lease.

The transportation leases generally have options for renewal. Future options not yet exercised are not included as commitments.

Leases for support facilities for Antarctic operations Lease payments are subject to increases in accordance with terms as negotiated under the lease.

The facility leases each have options for renewal. Future options not yet exercised are not included as commitments.

3. Project commitments relate to grant amounts payable under agreements in respect of which the grantee has yet to complete the milestone required under the agreement.

4. Other commitments relate to contracts for goods and services in respect of which the contracted party has yet to provide the goods and services required under the contract.


Schedule of Contingencies as at 30 June 2012

2012 2011 $'000 $'000Contingent assets Claims for damages or costs 3,428 4,214Total contingent assets 3,428 4,214Net contingent assets (liabilities) 3,428 4,214

Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 12, along with information on significant remote contingencies and contingencies that cannot be quantified.


Administered Schedule of Comprehensive Income forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2012

2012 2011 Notes $'000 $'000EXPENSES Suppliers 18A 84,584 98,035Subsidies 18B 11,025 9,713Grants 18C 717,974 723,982Depreciation 18D 12 1,149Write-down and impairment of assets 18E 74,664 184,063Payments to CAC Bodies 18F - 262,561Other expenses 18G 39 400Total expenses administered on behalf of Government 888,298 1,279,903 LESS: OWN-SOURCE INCOME Own-source revenue Taxation revenue Other taxes 19A 1,369 1,210Total taxation revenue 1,369 1,210 Non-taxation revenue Sale of goods and rendering of services 19B 839 724Fees and fines 19C 12,250 1,838Interest 19D 894 1,074Grant repayments 19E 7,669 11,394Total non-taxation revenue 21,652 15,030Total own-source revenue administered on behalf of Government 23,021 16,240 Gains Reversals of previous asset write-downs and impairments 19F 3,677 178Other gains 19G 51,595 18,022Total gains administered on behalf of Government 55,272 18,200

Total own-source income administered on behalf of Government 78,293 34,440 Net cost of services 810,005 1,245,463

Deficit (810,005) (1,245,463) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus 20,010 90,546Total other comprehensive income 20,010 90,546

Total comprehensive loss (789,995) (1,154,917)


Administered Schedule of Assets and Liabilities forDepartment of Sustainability, Environment, Water, Population and Communitiesas at ended 30 June 2012

2012 2011 Notes $'000 $'000ASSETS Financial assets Cash and cash equivalents 20A - 20Trade and other receivables 20B 26,123 18,953Other investments 20C 570,761 583,789Total financial assets 596,884 602,762 Non-financial assets Land 21A 1,467 1,467Property, plant and equipment 21B 492,047 424,104Intangibles 21C 1,942,628 1,395,863Inventories 21D 11,896 12,104Total non-financial assets 2,448,038 1,833,538 Total assets administered on behalf of Government 3,044,922 2,436,300 LIABILITIES Payables Suppliers 22A 8,715 5,175Subsidies 22B - 3,883Grants 22C 33,334 45,853Total payables 42,049 54,911 Total liabilities administered on behalf of Government 42,049 54,911 Net assets 3,002,873 2,381,389


Administered Reconciliation Schedule forDepartment of Sustainability, Environment, Water, Population and Communities

2012 2011 $'000 $'000 Opening administered assets less administered liabilities as at 1 July 2,381,389 9,081,494

Adjustment for errors 45 189Adjusted opening administered assets less administered liabilities 2,381,434 9,081,683Surplus (deficit) items:

Plus: Administered income 78,293 34,440Less: Administered expenses (non CAC) (888,298) (1,017,342)Less: Payments to CAC Act bodies - (262,561)

Other comprehensive income: Administered revaluations taken to/from reserves 20,010 90,546

Administered transfers to/from Australian Government: Appropriation transfers from OPA:

Annual appropriations for administered expenses (non CAC) 698,292 702,853Administered asset and liabilities appropriations 542,796 339,583Annual appropriations for payment to CAC Act bodies - 287,278Special appropriations (limited) (non CAC) 238,970 242,210

Transfers to OPA (97,451) (90,197)Restructuring 28,827 (7,027,104)

Closing administered assets less administered liabilities as at 30 June 3,002,873 2,381,389


Administered Cash Flow Statement forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2012

2012 2011 Notes $'000 $'000 OPERATING ACTIVITIES Cash received Sales of goods and rendering of services 351 2,753Interest 938 1,113Net GST received 49,681 46,242Fees and fines 12,276 1,838Levies 1,369 1,210Other 8,336 11,630Total cash received 72,951 64,786Cash used Suppliers 88,807 90,174Grants 824,946 820,460Payments to CAC Bodies - 262,561Subsidies paid 12 11,910Royalties - 400Other operating cash used 39 -Total cash used 913,804 1,185,505Net cash flows from (used by) operating activities 23 (840,853) (1,120,719) INVESTING ACTIVITIES Cash received Repayments of advances and loans 1,923 1,745Total cash received 1,923 1,745Cash used Purchase of property, plant and equipment - 88Purchase of intangibles 543,697 347,507CAC Act body investments - 24,717Total cash used 543,697 372,312Net cash flows from (used by) investing activities (541,774) (370,567)

Net increase (decrease) in Cash Held (1,382,627) (1,491,286) Cash and cash equivalents at the beginning of the reporting period 20 9,579 Cash from Official Public Account for:

- Appropriations 1,241,088 1,329,714- Special Accounts 238,970 242,210

1,480,058 1,571,924Cash to Official Public Account for:

- Appropriations (39,889) (38,608)- Special Accounts (57,562) (51,589)

(97,451) (90,197) Cash and cash equivalents at the end of the reporting period 20A - 20


Schedule of Administered Commitments as at 30 June 2012

2012 2011 $'000 $'000BY TYPE Commitments receivable

Joint activity contributions - (226)Water entitlements (14,043) -Net GST recoverable on commitments (73,532) (80,286)


Capital commitments 1 Other 6,469 163,573Total capital commitments 6,469 163,573 Other commitments

Project commitments 2 981,453 2,017,376Other 3 19,083 14,940Total other commitments 1,000,536 2,032,316

Total commitments payable 1,007,005 2,195,889Net commitments by type 919,430 2,115,377 BY MATURITY Commitments receivable

Other commitments receivable One year or less (47,384) (40,463)From one to five years (34,304) (33,182)Over five years (5,887) (6,867)Total other commitments receivable (87,575) (80,512)


Capital commitments One year or less 6,469 163,573Total capital commitments payable 6,469 163,573 Project commitments One year or less 509,905 634,249From one to five years 404,252 794,149Over five years 67,296 588,978Total project commitments payable 981,453 2,017,376 Other Commitments One year or less 17,533 6,583From one to five years 1,550 8,357Total other commitments 19,083 14,940

Total commitments payable 1,007,005 2,195,889Net commitments by maturity 919,430 2,115,377

NB: Commitments are GST inclusive where relevant.

1. Capital commitments relate to amounts payable in relation to the acquisition of water


Schedule of Administered Commitments as at 30 June 2012

entitlements.

2. Project commitments relate to grant amounts payable under agreement in respect of which the grantee has yet to complete the milestone required under the agreement.



Table of Contents - Notes

Note 1: Summary of Significant Accounting Policies

Note 2: Events After the Reporting Period

Note 3: Expenses

Note 4: Income

Note 5: Financial Assets

Note 6: Non-Financial Assets

Note 7: Payables

Note 8: Interest Bearing Liabilities

Note 9: Provisions

Note 10: Restructuring

Note 11: Cash Flow Reconciliation

Note 12: Contingent Assets and Liabilities

Note 13: Related Party Disclosures

Note 14: Senior Executive Remuneration

Note 15: Remuneration of Auditors

Note 16: Financial Instruments

Note 17: Financial Assets Reconciliation

Note 18: Administered – Expenses

Note 19: Administered – Income

Note 20: Administered – Financial Assets

Note 21: Administered – Non-Financial Assets

Note 22: Administered – Payables

Note 23: Administered – Cash Flow Reconciliation

Note 24: Administered – Contingent Assets and Liabilities

Note 25: Administered – Investments

Note 26: Administered – Financial Instruments

Note 27: Administered – Financial Assets Reconciliation

Note 28: Appropriations

Note 29: Special Accounts

Note 30: Compensation and Debt Relief

Note 31: Reporting of Outcomes

Note 32: Cost Recovery

Note 33: Net Cash Appropriation Arrangements


1.1 Objectives of the Department of Sustainability, Environment, Water, Population and Communities

The Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC / the Department) is an Australian Government controlled entity. It is a not-for-profit entity. The objective of the Department is to advance a sustainable Australia focussing on environment, water, heritage and communities.

The Department is structured to meet the following outcomes:



Outcome 3: Advancement of Australia’s strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.

Outcome 4: Adaptation to climate change, water wise use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources.

Outcome 5: Increased protection, awareness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, indigenous and historic places of national and World Heritage significance.

Since the 2010-11 financial statements, the structure of the Department has changed through the Administrative Arrangements Orders announced and approved on 14 December 2011. These changes are:

the transfer of housing affordability matters from DSEWPaC to the Department of Families, Housing, Community Services and Indigenous Affairs; and

the transfer of housing supply policy matters from DSEWPaC to the Department of the Treasury.

A revised outcome structure to better reflect the work of DSEWPaC following these changes was introduced as part of the 2012–13 Budget.

The continued existence of the Department in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programs.

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’s activities are identified under ten Programs. The relationship of Programs to Outcomes is as follows:

Outcome 1 Program 1.1: Sustainable management of natural resources and the environment Program 1.2: Environmental information and research Program 1.3: Carbon pollution reduction – land sector initiativesOutcome 2 Program 2.1: Management of hazardous wastes, substances and pollutants Program 2.2: Affordable housing Program 2.3: Sustainable communitiesOutcome 3 Program 3.1: Antarctica: science, policy and presenceOutcome 4 Program 4.1: Water reformOutcome 5 Program 5.1: Conservation of Australia's heritage and environment Program 5.2: Environmental regulation

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997.

The financial statements have been prepared in accordance with:

Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; 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 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 FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the Department or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

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

In the process of applying the accounting policies listed in this note, the Department has made the following estimates and judgements that have the most significant impact on the amounts recorded in the financial statements:

The estimated values for make good provisions and related assets have been arrived at on a reasonableness basis.

Water entitlements are carried at cost where there is no active market. When an active market exists they are carried at fair value.

No other 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 StandardsAdoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

The following amending standards were issued prior to the sign-off date, were applicable to the current reporting period and did not have a financial impact on the Department. They are disclosed to provide users with information about the main changes and why there is no impact:

AASB 124: Related Party Disclosure (issued December 2009)

This Standard simplifies the definition of a related party, clarifies its intended meaning and eliminates inconsistencies from the definition. A partial exemption is provided from the disclosure requirements for government-related entities. Entities that are related by virtue of being controlled by the same government can provide reduced related party disclosures.

AASB 2011-1: Amendments to Australian Accounting Standards – Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project (AASB 1, AASB 5, AASB 101, AASB 107, AASB 108, AASB 121, AASB 128, AASB 132 & AASB 134 and Interpretations 2, 112 & 113) (issued May 2011)

This Standard makes amendments to a range of Australian Accounting Standards and Interpretations for the purpose of closer alignment to IFRSs and harmonisation between Australian and New Zealand Standards. The subjects of these amendments to the Standard include:

Australian Accounting Standard or Interpretation Subject of amendment

AASB 101 Presentation of Financial Statements

The main amendments are:Deletion of disclosure requirements relating to capital and expenditure commitments. However, the FMOs still require disclosure of commitments.Deletion of a number of Australian-specific guidance.Relocation to AASB 1054 Australian Additional Disclosures of a number of Australian-specific disclosure requirements.

AASB 107 Statement of Cash Flows

Relocation to AASB 1054 of the disclosure requirement relating to reconciliation of net operating cash flow to profit or loss.

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

The following new and amending standards were issued by the Australian Accounting Standards Board prior to the sign-off date, are not expected to have a financial impact on the Department for future reporting periods. They are disclosed to provide users with information about the main changes and why there is no impact:

AASB 9 Financial Instrument (issued December 2009)

This Standard includes requirements for the classification and measurement of financial assets resulting from the first part of Phase 1 of the IASB's project to replace AASB 139 Financial Instruments: Recognition and Measurement. These requirements improve and simplify the approach for classification and measurement of financial assets compared with the requirements of AASB 139. The main changes are: financial assets are classified based on (a) the objective of the entity's business model for managing the financial assets; and (b) the characteristics of the contractual cash flows. This replaces the categories of financial assets in AASB 139, each of which had its own classification criteria. AASB 9 allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Financial assets can be designated and measured at fair value through profit or loss at initial recognition, if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases.

AASB 13: Fair Value Measurement (issued September 2011)

This Standard has been released as a result of the International Accounting Standards Board (IASB)’s project to ensure consistency of fair value measurement and disclosure within financial statements. AASB 13 defines fair value, sets out a framework for measuring fair value, and requires disclosures about fair value measurements. The definition of fair value focuses on assets and liabilities because they are a primary subject of accounting measurement.

AASB 2010-7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127) (issued December 2010)

This Standard makes amendments to twenty one Australian Accounting Standards and six Interpretations. These amendments arise from the issuance of AASB 9 Financial Instruments as issued in December 2010. When applied or operative, this Standard supersedes AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 issued in December 2009. However, for annual reporting periods ending on or after 31 December 2009 that begin before 1 January 2013, an entity may elect to apply AASB 9 issued in December 2009 instead of applying AASB 9 (December 2010) and therefore will apply the amendments to other Australian Accounting Standards in AASB 2009-11 instead of this Standard.

AASB 2011-8: Amendments to Australian Accounting Standards arising from AASB 13 (AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132) (issued September 2011)

This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations to ensure consistency with AASB 13 Fair Value Measurement. AASB 13 establishes a new definition of "fair value" and general requirements when measuring the fair value of assets and liabilities.

AASB 2011-9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income (AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049) (issued September 2011)

The main change resulting from the amendments is a requirement to group items presented in other comprehensive income (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). These amendments do not remove the option to present profit or loss and other comprehensive income in two statements. The subjects of these amendments to the Standard which may affect the presentation of the financial statements include:

Australian Accounting Standard Subject of amendment


A single statement of profit or loss and other comprehensive income may be presented, with profit or loss and other comprehensive income presented in two sections.The sections shall be presented together, with the profit or loss section presented first followed directly by the other comprehensive income section.The profit or loss section may be presented in a separate statement of profit or loss. If so, the separate statement of profit or loss shall immediately precede the statement presenting comprehensive income, which shall begin with profit or loss.

AASB 1053: Application of Tiers of Australian Accounting Standards (issued June 2010)

This Standard establishes a differential financial reporting framework consisting of two Tiers of reporting requirements for preparing general purpose financial statements: (a) Tier 1: Australian Accounting Standards; and (b) Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements. Tier 2 comprises the recognition, measurement and presentation requirements of Tier 1 and substantially reduced disclosures corresponding to those requirements.

The following entities apply Tier 1 requirements in preparing general purpose financial statements: for-profit entities in the private sector that have public accountability (as defined in this Standard) and the Australian Government and State, Territory and Local Governments.

The following entities apply either Tier 2 or Tier 1 requirements in preparing general purpose financial statements: for-profit private sector entities that do not have public accountability; all not-for-profit private sector entities; and public sector entities other than the Australian Government and State, Territory and Local Governments.

Whilst Tier 2 requirements would be available to all not-for-profit private sector entities and most public sector entities, regulators might exercise a power to require the application of Tier 1 requirements by the entities they regulate. In the case of Commonwealth agencies and authorities, the Department of Finance and Deregulation is the regulator and could provide authorisation through the FMOs.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting period are not expected to have a future financial impact on the Department.

1.5 Principles of Consolidation (Natural Heritage Trust of Australia Account)

Subsection 43(1) of the Natural Heritage Trust of Australia Act 1997 requires financial statements to be prepared for the Natural Heritage Trust of Australia Account (NHT). Reporting by the NHT reflects the NHT as a separate reporting entity, with all transactions between the NHT and parties outside the NHT being reported.

Reporting of the NHT as part of the Department’s administered disclosure in these financial statements takes account of the treatment of administered items as a whole and the administered presentation rules as prescribed in the FMOs. The financial statements of the NHT are consolidated into the Department's administered financial statements. Where accounting policies and disclosure requirements differ between the NHT and the Department adjustments are made on consolidation to bring any dissimilar accounting policies and disclosures into alignment.

1.6 Revenue

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer;

b) the Department retains no managerial involvement or effective control over the goods;

c) the revenue and transaction costs incurred can be reliably measured; and

d) it is probable that the economic benefits associated with the transaction will flow to the Department.

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:

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b) 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 end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

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 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.

1.7 GainsResources Received Free of Charge

Resources received free of charge are recognised as gains 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.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (Refer to Note 1.8).

Sale of AssetsGains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.8 Transactions with the Government as OwnerEquity 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 Owners

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. In 2011-12, by agreement with the Department of Finance and Deregulation, the Department relinquished control of surplus appropriation funding of $496,000 which was returned to the Official Public Account (2010-11: $5,886,000).

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.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

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 2011 and using updated discount factors provided by the actuary as at 30 June 2012. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The Department recognises a provision 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), the Australian Government Employees Superannuation Trust (AGEST) or other superannuation schemes held outside the Commonwealth.

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 by the Department of Finance and Deregulation’s administered schedules and notes.

The Department makes employer contributions to the employees’ superannuation scheme at rates 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.

1.10 Leases

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.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

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.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1.11 Borrowing Costs

All borrowing costs are expensed as incurred.

1.12 Cash

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

a) cash on hand;

b) demand deposits in bank accounts with an original maturity of 3 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; and

d) cash in special accounts.

1.13 Financial Assets

The Department classifies its financial assets as ‘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.

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 or loss.

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 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.

1.14 Financial Liabilities

The Department classifies its financial liabilities as ‘other financial liabilities’.

Financial liabilities are recognised and derecognised upon ‘trade date’.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These 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 that the goods or services have been received (and irrespective of having been invoiced).

1.15 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the balance sheet 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.

1.16 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.17 Property, Plant and EquipmentAsset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than the following asset thresholds, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Asset Class Recognition ThresholdBuildings $10,000Leasehold improvements $50,000Property, plant and equipment $5,000Artworks $ Nil

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 property to its original condition and restitution obligations in the Antarctic where there exists an international obligation to clean-up abandoned work sites, buildings and infrastructure. These costs are included in the value of the Department’s leasehold improvements and property, plant and equipment assets 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 measured atLand Market selling priceBuildings (excluding leasehold improvements)

Market selling price or, in the case of specialised assets, depreciated replacement cost

Leasehold improvements Depreciated replacement cost

Property, plant and equipment Market selling price or, in the case of specialised assets, depreciated replacement cost

Heritage and cultural assets Market selling price

Following initial recognition at cost, property plant and equipment assets are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date 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:

2012 2011Buildings on freehold land 3 to 50 years 3 to 50 yearsLeasehold improvements Lease term Lease termProperty, plant and equipment 2 to 50 years 2 to 50 years

The Department has items of property, plant and equipment, that are heritage and cultural assets, that have limited useful lives and are depreciated.

Impairment

All assets were assessed for impairment at 30 June 2012. 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.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Department were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

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.

1.18 Intangibles

The Department’s intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Department’s software are 3 to 17 years (2011: 3 to 17 years).

All software assets were assessed for indications of impairment as at 30 June 2012.

1.19 Inventories

Inventories held for sale are valued at the lower of cost and net realisable value.

Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

a) raw materials and stores – purchase cost on a first-in-first-out basis;

b) fuel – weighted average cost; and

c) finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

1.20 Provision for Restoration Obligations

A provision for restoration obligations (make good) is recognised if, as a result of a past event, the Department has a present obligation (legal or constructive) that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Make good provisions are measured at the best estimate of the expenditure required to settle the present obligation at the reporting date, including the risks and uncertainties specific to the liabilities (Refer to Note 9B).

Make good provisions are discounted to present value when the time value of money is material. Increases in present value are recognised as borrowing costs.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

Provision for Restoration Obligations - Antarctic Base Restitution

Australia is required by the Madrid Protocol to remove all accumulated waste from the Antarctic Territories. A process of gradual removal is in effect. The provision for Antarctic Base restitution is for the estimated future costs of this obligation and is derived from an expert valuation which provides a “best estimate” in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Provision for Restoration Obligations – Antarctic Regions

This provision represents the estimated future costs of making good Australian Antarctic Territories upon which premises occupied by the Department are located. The obligation to make good arises from the requirements of the Madrid Protocol. The estimated future costs represent the cost of decommissioning, dismantling, and expatriation to Australia of all building and associated materials and the cost of site rehabilitation. Buildings and buildings support infrastructure are decommissioned and replaced on an ongoing basis, infrequently, and the majority of costs will be incurred during any major Antarctic Base rebuilding program. The provision is derived from an expert valuation and a costing model which provides a “best estimate” in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Provision for Restoration Obligations – Other Localities

This provision represents the estimated costs of making good leasehold premises occupied by the Department at the John Gorton Building, Barton ACT, the Temperate Marine Conservation Branch in Kingston Tasmania and the Jabiru Field Station NT. The provision is derived from an expert valuation which provides a “best estimate” in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

1.21 Taxation

The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

1.22 Other Comprehensive Income – Changes in Asset Revaluation Surplus

During the year, a decrease of $36.883m was recorded against the asset revaluation surplus as a result of the impact of the decrease in the 10 Year Australian Government Bond Rate on the Department’s provisions for restoration obligations.

1.23 Going Concern

The Department is part of the legal entity that is the Australian Government, which is ultimately responsible for all the Department’s debts. In 2011-12, the Department’s total liabilities exceeded its total assets. This is primarily due to an increase in the provision for restoration obligations (make good) for the Australian Antarctic Territories (refer to Note 1.20) resulting from movements in the 10 year Australian Government Bond rate. The existence of total liabilities in excess of total assets of the Department as reported in the balance sheet did not make the Department insolvent and has no bearing on whether the Department's debts will be met.

Australian Government Agencies have no separate legal personality but are part of the Australian Government and are ‘wound up’ only when the government decides that all their functions are to be performed by another entity or entities, or are not to be performed at all. This situation does not of itself mean that the Department is not a going concern.

1.24 Reporting of Administered ActivitiesAdministered 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 and Deregulation. 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 schedule of administered cash flows 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 Department that oversees distribution or expenditure of the funds as directed.

Revenue is primarily generated from fees that are charged for Ozone Protection and Synthetic Greenhouse Gas levies and licences. Administered fee revenue is recognised when levies and licences occur. Revenue also includes contributions from State and Territory governments in connection with the performance of the Water Efficiency Labelling and Standards (WELS) Regulator. The Regulator administers the WELS scheme and enforces the WELS standard that sets out the criteria for rating the water efficiency and performance of each WELS product type.

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 end of the reporting period. Allowances are made when collectability of the debt is no longer probable.


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, de-recognition and amortisation are recognised through profit or loss.

Administered Investments

Administered investments in subsidiaries, joint ventures and associates 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 2012. Fair value has been taken to be the Australian Government's proportional interest in the net assets of the entities as at end of reporting period. These entities include the Director of National Parks and the Sydney Harbour Federation Trust. The Director of National Parks is reliant on funding from the Government to establish and manage protected areas. The custodial obligations of the Sydney Harbour Federation Trust are consistent with those of a not-for profit entity, and whilst the Sydney Harbour Federation Trust generates non-government cash inflows the net asset valuation technique has been applied as it results in a more consistent, relevant and reliable measure of value. In accordance with Division 87 of the FMOs, the net asset valuation technique has been used to determine the fair value of the Australian Government's proportional interest in these entities as at 30 June 2012 (Refer to Note 20C).

Grants and Subsidies

The Department administers a number of grant and subsidy schemes on behalf of the Government.Grant and subsidy 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 Government enters into an agreement to make these grants but services have not been performed or criteria satisfied.

Payments to CAC Act Bodies

Payments to CAC Act bodies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The appropriation to the Department is disclosed in Table A of the appropriations note (Note 28).

National Halon Bank

In accordance with the Government’s National Halon Management Strategy, the Government operates the National Halon Bank. Halons are fire-fighting agents whose ozone depleting potential is ten times greater than that of chlorofluorocarbons. Under State and Territory legislation, the continued use of halon in non-essential equipment has been banned.

The National Halon Bank stores decommissioned halon for destruction or reclamation, and to meet Australia’s essential use needs until the year 2030 or until an alternative is found for all current uses.

There are four categories of Halon holdings:

Strategic reserve; Waste halon; Clean halon; and Other halon still in cylinders

The halon stored in the National Halon Bank is a resource controlled by the Government and from which economic benefits are expected to flow to the Government. The current holdings of halon are recognised as inventory.

Impairment of Water Entitlements

The Department acquires water entitlements to achieve the Government’s environmental policy objectives. As its water entitlement holdings continue to increase so does the strategic importance of demonstrating a robust valuation assessment.

The Department’s holdings of water entitlements are classified as indefinite life intangible assets and are therefore subject to annual impairment testing in accordance with AASB 138 Intangible Assets (AASB 138), AASB 136 Impairment of Assets (AASB 136) and the 2011-2012 Finance Minister’s Orders (FMOs).

Under AASB 136, the impairment test is carried out by comparing the carrying amount (per the Department’s asset register) to the recoverable amount of the water entitlements. The recoverable amount of the water entitlements is the higher of fair value less costs to sell and value in use. The recoverable amount calculation is performed at the lowest practical level, taking into account the quality and availability of data.

The Department’s valuation methodology calculates the fair value of the water entitlements based on the best information available to reflect the amount that an entity could obtain from the disposal of the water entitlements in an arm’s length transaction between knowledgeable, willing parties. This approach is consistent with AASB 136. The Department has developed a model to assess whether there has been a significant decrease in price or whether there has been a prolonged decline in the value of the entitlement, using the median price of water entitlements extracted from State water registries. If either of these conditions is met an impairment loss is recorded. Having reviewed water entitlement price movements, the Department has determined that a decline in excess of 10 percent or a 9 months prolonged decline in the value of the entitlement is an appropriate benchmark for this market.

In addition to generating a fair value consistent with AASB 136 as outlined above, the methodology calculates value in use or depreciated replacement cost for the water entitlements. In other words, the methodology satisfies the requirements of each of the recoverable amount calculation methods given by AASB 136.Based on the results of the 2011-12 impairment test, an additional impairment of $62.463m was identified on water entitlements. A further impairment of $11.799m was identified on water entitlements held in the Living Murray Initiative joint venture. Refer to Note 18E Write-Down and Impairment of Assets and Note 21C Intangibles for more details.


Departmental

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Department.

Administered

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Department.

Note 3: Expenses 2012 2011 $'000 $'000Note 3A. Employee Benefits Wages and salaries 184,064 181,234Superannuation:

Defined contribution plans 14,763 12,820Defined benefit plans 20,246 21,058

Leave and other entitlements 42,474 31,525Separation and redundancies 763 1,323Total employee benefits 262,310 247,960

Note 3B. Supplier Goods and services Contractors 92,146 39,667General goods and services 53,886 27,810Information and communication technology 22,372 18,574Inventory consumed 5,275 5,073Travel 12,503 11,770Property operating expense 7,787 10,952Consultants 7,706 9,197Legal services 4,136 2,862Learning and development 3,326 3,604Total goods and services 209,137 129,509 Goods and services are made up of: Provision of goods – external parties 24,525 24,299Rendering of services – related entities 49,768 5,868Rendering of services – external parties 134,844 99,342Total goods and services 209,137 129,509 Other supplier expenses Operating lease rentals – external parties:

Minimum lease payments 46,002 45,537Workers compensation expenses 3,017 4,041Total other supplier expenses 49,019 49,578Total supplier expenses 258,156 179,087

2012 2011 $'000 $'000Note 3C. Grants and Transfer Funding Public sector:

Australian Government entities (related entities) 180 145State and Territory Governments 845 1,929

Private sector: Non-profit organisations 2,528 3,064Profit-making entities 69 24Universities 2,239 1,077Individuals 2 40Overseas 2,051 838

Total grants 7,914 7,117

Payment to the Director of National Parks 41,485 46,444Total transfer funding 41,485 46,444

Note 3D. Depreciation and Amortisation Depreciation:

Property, plant and equipment1 20,095 19,067Buildings 16,920 15,784Leasehold improvements 1,902 2,183

Total depreciation 38,917 37,034 Amortisation:

Intangibles Internally developed software 1,137 1,339Purchased software 2,598 2,563

Total amortisation 3,735 3,902Total depreciation and amortisation 42,652 40,936

1. Depreciation expenses for finance leases were included in the line ‘Property, plant and equipment’ above. Depreciation on equipment under finance lease arrangements was $3,636,000 (2011: $2,472,000).

Note 3E. Finance Costs Finance leases 516 633Unwinding of discount 16,138 16,807Total finance costs 16,654 17,440

Note 3F. Write-Down and Impairment of Assets Asset write-downs and impairments from:

Impairment on financial instruments 452 438Impairment of land and buildings - 76Impairment of property, plant and equipment 80 178Impairment on intangible assets 61 7

Total write-down and impairment of assets 593 699

2012 2011 $'000 $'000Note 3G. Other Expenses Makegood provision increases 56,396 -Other 160 65Total other expenses 56,556 65

Note 4: Income 2012 2011 $'000 $'000OWN-SOURCE REVENUE Note 4A. Sale of Goods and Rendering of Services Provision of goods - external parties - 20Rendering of services - related entities 75,339 46,839Rendering of services - external parties 10,798 16,503Total sale of goods and rendering of services 86,137 63,362

Note 4B. Other Revenue Grants received 1,689 3,596Rental income - 2,147Insurance recoveries 1,595 1,281Workers compensation received 17 115Repayment of prior years grant expenditure 109 878Other 801 564Total other revenue 4,211 8,581

GAINS Note 4C. Sale of Assets Property, plant and equipment:

Proceeds from sale 224 982Carrying value of assets sold (444) (935)

Other (assets below recognition threshold): Proceeds from sale 321 132

Net gain from sale of assets 101 179

Note 4D. Reversals of Previous Asset Write-Downs and Impairments Reversal of impairment losses - financial assets 30 278Total reversals of previous asset write-downs and impairments 30 278

2012 2011 $'000 $'000Note 4E. Other Gains Assets now recognised 8 20Write-down of provisions and payables 136 2,913Resources received free of charge 641 684Assets received free of charge 9 382Total other gains 794 3,999

REVENUE FROM GOVERNMENT Note 4F. Revenue from Government Appropriations:

Departmental appropriations 466,251 404,976Total revenue from Government 466,251 404,976

Note 5: Financial Assets 2012 2011 $'000 $'000Note 5A. Cash and Cash Equivalents Cash on hand or on deposit 5,468 5,770Total cash and cash equivalents 5,468 5,770

Note 5B. Trade and Other Receivables Good and Services:

Goods and services - related entities 4,506 5,227Goods and services - external parties 383 1,763

Total receivables for goods and services 4,889 6,990 Appropriations receivable:

For existing programs 67,771 69,627Total appropriations receivable 67,771 69,627 Other receivables:

GST receivable from the Australian Taxation Office 4,668 3,461Other 898 930

Total other receivables 5,566 4,391Total trade and other receivables (gross) 78,226 81,008 Less impairment allowance account:

Goods and services (130) (277)Total impairment allowance account (130) (277)Total trade and other receivables (net) 78,096 80,731 Receivables are expected to be recovered in:

No more than 12 months 78,096 80,731Total trade and other receivables (net) 78,096 80,731

Receivables are aged as follows:

Not overdue 76,218 77,827Overdue by:

0 to 30 days 816 1,458 31 to 60 days 471 1,090 61 to 90 days 13 99 More than 90 days 708 534

Total receivables (gross) 78,226 81,008 The impairment allowance account is aged as follows:

Overdue by: 61 to 90 days (10) -More than 90 days (120) (277)

Total impairment allowance account (130) (277)

Credit terms for goods and services were within 30 days (2011: 30 days).

Reconciliation of the Impairment Allowance Account: Movements in relation to 2012

Goods and

services Total $'000 $'000Opening balance (277) (277)

Amounts written off 160 160Amounts recovered and reversed 45 45Increase/decrease recognised in net surplus (58) (58)

Closing balance (130) (130) Movements in relation to 2011

Goods and

services Total $'000 $'000Opening balance (640) (640)

Amounts written off 98 98Amounts recovered and reversed 329 329Increase/decrease recognised in net surplus (64) (64)

Closing balance (277) (277)

2012 2011 $'000 $'000Note 5C. Other Financial Assets Accrued revenue - goods and services 3,842 4,809Total other financial assets 3,842 4,809 Total other financial assets - are expected to be recovered in:

No more than 12 months 3,842 4,809Total other financial assets 3,842 4,809

Note 6: Non-Financial Assets 2012 2011 $'000 $'000Note 6A. Land and Buildings Land:

Land at fair value 1,087 1,078Total land 1,087 1,078 Buildings on freehold land:

Work in progress 7,520 22,752Fair value 276,835 253,716Accumulated depreciation (31,256) (14,336)

Total buildings on freehold land 253,099 262,132 Leasehold improvements:

Work in progress 4,038 80Fair value 13,650 12,561Accumulated depreciation (2,490) (606)

Total leasehold improvements 15,198 12,035 Total land and buildings 269,384 275,245

No indicators of impairment were found for land and buildings.

No land or buildings are expected to be sold or disposed of within the next 12 months.

Note 6B. Property Plant and Equipment Other property, plant and equipment:

Work in progress 13,346 10,659Fair value 135,357 123,274Accumulated depreciation (28,085) (8,702)

Total other plant, property and equipment 120,618 125,231Total property, plant and equipment 120,618 125,231

Plant and equipment under finance leases were subject to revaluation. The carrying amount of $6,790,000 (2011: $7,512,000) was included in the valuation figures above.

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1. On 30 June 2011, an independent valuer conducted the revaluations.

There were no revaluation increments for land (2011: $837,000).

There were no revaluation increments for buildings on freehold land (2011: increment of $31,071,000), leasehold improvements (2011: increment of $3,498,000) or plant and equipment (2011: increment of $10,137,000)

All increments and decrements were transferred to the asset revaluation surplus by asset class and included in the equity section of the balance sheet. No decrements were expensed (2011: nil).

2012 2011 $'000 $'000Note 6C. Intangibles Computer software:

Internally developed – in progress 8,882 4,742Internally developed – in use 13,990 12,308Purchased - in progress 1,409 740Purchased - in use 13,003 12,664Accumulated amortisation (17,808) (14,505)

Total computer software 19,476 15,949 Total intangibles 19,476 15,949

No indicators of impairment were found for intangible assets.

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 6D. Reconciliation of the Opening and Closing Balances of Land and Buildings, and Property, Plant and Equipment 2012

Land BuildingsLeasehold

Improvements

Total land and

buildings

Heritageand

cultural1

Other property,

plant & equipment Total2

$’000 $’000 $’000 $’000 $’000 $’000As at 1 July 2011 Gross book value 1,078 276,468 12,641 290,187 - 133,933 424,120Accumulated depreciation and impairment - (14,336) (606) (14,942) - (8,702) (23,644)Net book value 1 July 2011 1,078 262,132 12,035 275,245 - 125,231 400,476 Additions:

By purchase - 11,005 5,447 16,452 - 12,413 28,865Impairments recognised in the operating result - - - - - (80) (80)Depreciation expense - (16,920) (1,902) (18,822) - (20,095) (38,917)Other movements:

Reclassifications 9 (3,118) (382) (3,491) - 3,593 102Disposals:

Other - - - - - (444) (444)Net book value 30 June 2012 1,087 253,099 15,198 269,384 - 120,618 390,002 Net book value as of 30 June 2012 represented by: Gross book value 1,087 284,355 17,688 303,130 - 148,703 451,833Accumulated depreciation and impairment - (31,256) (2,490) (33,746) - (28,085) (61,831)Net book value 30 June 2012 1,087 253,099 15,198 269,384 - 120,618 390,002

1. Land, buildings and other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class.

2. Total equals total land and buildings (Note 6A) plus total property, plant and equipment (Note 6B).

Note 6D (Cont'd). Reconciliation of the Opening and Closing Balances of Land and Buildings, and Property, Plant and Equipment 2011

Land BuildingsLeasehold

Improvements

Total land and

buildings

Heritage and

cultural1

Other property,

plant & equipment Total2

$’000 $’000 $’000 $’000 $’000 $’000 $’000As at 1 July 2010 Gross book value 241 377,128 35,750 413,119 23,364 206,521 643,004Accumulated depreciation and impairment - (63,510) (20,919) (84,429) (11) (59,355) (143,795)Net book value 1 July 2010 241 313,618 14,831 328,690 23,353 147,166 499,209 Additions:

By purchase - 15,117 755 15,872 81 17,026 32,979By finance lease - - - - - 7,393 7,393By donation/gift - - - - 382 - 382

Revaluations and impairments recognised in other comprehensive income 837 31,071 3,498 35,406 - 10,137 45,543Impairments recognised in the operating result - - (76) (76) - (178) (254)Depreciation expense - (15,784) (2,183) (17,967) (48) (19,019) (37,034)Other movements:

Reclassifications - (1,296) 295 (1,001) 996 (10) (15)Other - - - - 11 9 20

Disposals: From disposal of entities or operations (including restructuring) - (80,594) (5,085) (85,679) (24,775) (36,358) (146,812)Other - - - - - (935) (935)

Net book value 30 June 2011 1,078 262,132 12,035 275,245 - 125,231 400,476 Net book value as of 30 June 2011 represented by: Gross book value 1,078 276,468 12,641 290,187 - 133,933 424,120Accumulated depreciation and impairment - (14,336) (606) (14,942) - (8,702) (23,644)Net book value 30 June 2011 1,078 262,132 12,035 275,245 - 125,231 400,476



Note 6E. Reconciliation of the Opening and Closing Balances of Intangibles 2012

Computer software

internally developed

Computer software

purchased Total $’000 $’000 $’000As at 1 July 2011 Gross book value 17,050 13,404 30,454Accumulated amortisation and impairment (8,816) (5,689) (14,505)Net book value 1 July 2011 8,234 7,715 15,949 Additions: By purchase or internally developed 5,469 1,956 7,425Impairments recognised in the operating result - (61) (61)Amortisation (1,137) (2,598) (3,735)Other movements:

Reclassifications 425 (527) (102)Net book value 30 June 2012 12,991 6,485 19,476 Net book value as of 30 June 2012 represented by: Gross book value 22,872 14,412 37,284Accumulated amortisation and impairment (9,881) (7,927) (17,808)Net book value 30 June 2012 12,991 6,485 19,476

Note 6E (Cont'd). Reconciliation of the Opening and Closing Balances of Intangibles 2011

Computer software internally

developed

Computer software

purchased Total $’000 $’000 $’000As at 1 July 2010 Gross book value 15,477 13,815 29,292Accumulated amortisation and impairment (8,232) (3,473) (11,705)Net book value 1 July 2010 7,245 10,342 17,587Additions:

By purchase or internally developed 2,311 872 3,183Revaluations and impairments recognised in other comprehensive income - 40 40Impairments recognised in the operating result (7) - (7)Amortisation (1,339) (2,563) (3,902)Other movements:

Reclassifications 24 (9) 15Other - (915) (915)

Disposals: From disposal of entities or operations (including restructuring) - (52) (52)

Net book value 30 June 2011 8,234 7,715 15,949 Net book value as of 30 June 2011 represented by: Gross book value 17,050 13,404 30,454Accumulated amortisation and impairment (8,816) (5,689) (14,505)Net book value 30 June 2011 8,234 7,715 15,949

2012 2011 $'000 $'000Note 6F. Inventories Inventories held for distribution:

Finished goods 7,754 6,259Total inventories held for distribution 7,754 6,259

No items of inventory were recognised at fair value less cost to sell.

All inventories are expected to be distributed in the next 12 months.

Note 6G. Other Non-Financial Assets Prepayments 5,721 4,169Total other non-financial assets 5,721 4,169 Total other non-financial assets - are expected to be recovered in:

No more than 12 months 5,606 4,019More than 12 months 115 150

Total other non-financial assets 5,721 4,169

No indicators of impairment were found for other non-financial assets.

Note 7: Payables 2012 2011 $'000 $'000Note 7A. Suppliers Trade creditors and accruals 21,495 18,687Operating lease rentals 86 339Total supplier payables 21,581 19,026 Supplier payables expected to be settled within 12 months:

Related entities 5,173 1,674External parties 16,408 17,352

Total 21,581 19,026 Total supplier payables 21,581 19,026

Settlement was usually made within 30 days.

Note 7B. Grants Public sector:

State and Territory Governments - 20Private sector:

Non-profit organisations 276 434Overseas 647 -

Total grants 923 454

Total grants are expected to be settled in:

No more than 12 months 923 454Total grants 923 454

Settlement was usually made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility.

Note 7C. Other Payables Wages and salaries 5,711 4,516Superannuation 945 1,759Separations and redundancies 180 114Unearned revenue 18,019 21,083Other 280 467Total other payables 25,135 27,939 Total other payables are expected to be settled in:

No more than 12 months 25,135 27,939Total other payables 25,135 27,939

Note 8: Interest Bearing Liabilities 2012 2011 $'000 $'000Note 8A. Leases Finance leases 5,052 6,777Total finance leases 5,052 6,777 Payable: Within one year:

Minimum lease payments 2,769 2,632Deduct: future finance charges (340) (499)

In one to five years: Minimum lease payments 2,763 5,058Deduct: future finance charges (140) (414)

Finance leases recognised on the balance sheet 5,052 6,777

In 2012, Finance leases existed in relation to certain IT equipment provided under the Datacom Services Agreement. The leases were non-cancellable and for fixed terms averaging 5 years, with a maximum of 10 years. The interest rate implicit in the leases averaged 8.62% (2011: 8.62%). The lease assets secure the lease liabilities. Cancellation penalties apply on early termination of the lease. There were no contingent rentals.

Note 9: Provisions 2012 2011 $'000 $'000Note 9A. Employee Provisions Leave 72,111 58,407Total employee provisions 72,111 58,407 Employee provisions are expected to be settled in:

No more than 12 months 32,804 29,495More than 12 months 39,307 28,912

Total employee provisions 72,111 58,407

Note 9B. Other Provisions Provision for restoration obligations - Antarctic base restitution 65,909 54,510Provision for restoration obligations - Antarctic regions 355,248 253,404Provision for restoration obligations - other localities 6,056 5,055Other 450 -Total other provisions 427,663 312,969

Other provisions are expected to be settled in: No more than 12 months 4,103 3,440More than 12 months 423,560 309,529

Total other provisions 427,663 312,969

Antarctic base

restitution Antarctic regions

Other localities Other Total

$’000 $’000 $’000 $’000 $’000Carrying amount 1 July 2011 54,510 253,404 5,055 - 312,969

Additional provisions made - 6,009 - 450 6,459Amounts used (1,183) - - - (1,183)Amounts reversed - - - - -Revaluation of change in discount rate 9,895 82,633 752 - 93,280Unwinding of discount 2,687 13,202 249 - 16,138

Closing balance 30 June 2012 65,909 355,248 6,056 450 427,663

The “Provision for restoration obligations – Antarctic regions” (Refer to Note 1.20) valuation is derived from a costing model developed by an expert valuer. Annually the valuation of provision is revised for any changes in the long term cost discount rate. The revaluation due to the change in discount rate resulted in an increase to the provision of $82.633m, an increase of 33%.

Note 10: Restructuring

Note 10A. Departmental Restructuring 2012 2011

Housing

AffordabilityHousing

Supply Policy

Housing Supply and Affordability

Sustainable Population

PolicyCultural

AffairsEnergy

Efficiency FaHCSIA1 Treasury2 FaHCSIA3 Treasury4 PM&C5 DCCEE6

$'000 $'000 $'000 $'000 $'000 $'000FUNCTIONS ASSUMED Assets recognised

Trade and other receivables - - 846 - - -Total assets recognised - - 846 - - - Liabilities recognised

Employee provisions - - (1,447) - - -Total liabilities recognised - - (1,447) - - -Net assets/(liabilities) assumed - - (601) - - - Income Recognised by the receiving entity - - 8,730 1,098 - -Recognised by the losing entity - - 2,222 312 - -Total income - - 10,952 1,410 - - Expenses Recognised by the receiving entity - - 9,650 1,019 - -Recognised by the losing entity - - 2,222 312 - -Total expenses - - 11,872 1,331 - -

Note 10A. Departmental Restructuring (Cont'd) 2012 2011

Housing

AffordabilityHousing

Supply Policy

Housing Supply and Affordability

Sustainable Population

PolicyCultural

AffairsEnergy

Efficiency FaHCSIA1 Treasury2 FaHCSIA3 Treasury4 PMC5 DCCEE6

$'000 $'000 $'000 $'000 $'000 $'000FUNCTIONS RELINQUISHED Assets recognised

Cash and cash equivalents - - - - 7,451 -Trade and other receivables 916 161 - - 8,006 -Land and buildings - - - - 81,972 5,046Property, plant and equipment - - - - 59,794 -Intangibles - - - - 52 -Inventories - - - - 30 -Other non-financial assets - - - - 56 -

Total assets relinquished 916 161 - - 157,361 5,046 Liabilities recognised

Suppliers (30) (5) - - (732) -Other payables - - - - (1,686) -Employee provisions (1,122) (312) - - (5,958) (203)Other provisions - - - - (33) -

Total liabilities relinquished (1,152) (317) - - (8,409) (203)Net assets/(liabilities) relinquished (236) (156) - - 148,952 4,843

Note 10A. Departmental Restructuring (Cont'd)

1. The Housing Affordability function was relinquished to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) during 2012 due to a restructuring of administrative arrangements on 14 December 2011.

2. The Housing Supply Policy function was relinquished to the Department of the Treasury (Treasury) during 2012 due to a restructuring of administrative arrangements on 14 December 2011.

3. The Housing Supply and Affordability function was assumed from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) during 2011 due to a restructuring of administrative arrangements on 14 September 2010.

4. The Sustainable Population Policy function was assumed from the Department of the Treasury (Treasury) during 2011 due to a restructuring of administrative arrangements on 14 September 2010.

5. The Cultural Affairs, including Movable Cultural Heritage and Support for the Arts function was relinquished to the Department of the Prime Minister and Cabinet (PM&C) during 2011 due to a restructuring of administrative arrangements on 14 September 2010.

6. The Energy Efficiency function was relinquished to the Department of Climate Change and Energy Efficiency (DCCEE) during 2010 due to a restructuring of administrative arrangements on 8 March 2010.

7. The net liabilities assumed from all entities were $0 (2011: $601,000).

8. The net liabilities relinquished to all entities were $392,000 (2011: net assets of $153,795,000).

9. In respect of functions assumed, the net book values of assets and liabilities were transferred to the entity for no consideration.

Note 10B. Administered Restructuring 2012 2011

Housing

Affordability

Housing Supply and Affordability Cultural Affairs

FaHCSIA1 FaHCSIA2 PM&C3

$'000 $'000 $'000FUNCTIONS ASSUMED Liabilities recognised

Grants payable - (1,460) -Subsidies payable - (6,080) -

Total liabilities recognised - (7,540) -Net assets/(liabilities) assumed - (7,540) - Income

Recognised by the receiving entity - 2,200 -Recognised by the losing entity - - -

Total income - 2,200 - Expenses

Recognised by the receiving entity - 40,361 -Recognised by the losing entity - 10,626 -

Total expenses - 50,987 - FUNCTIONS RELINQUISHED Assets relinquished

Receivables - - 1,439Other investments - - 7,000,903Land and buildings - - 33,120Other non-financial assets - - 200

Total assets relinquished - - 7,035,662 Liabilities relinquished

Suppliers - - (41)Subsidies (14,896) - -Grants (13,931) - (16,057)

Total liabilities relinquished (28,827) - (16,098)Net assets/(liabilities) relinquished (28,827) - 7,019,564

Note 10B. Administered Restructuring (Cont'd)

1. The Housing Affordability function was relinquished to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) during 2012 due to a restructuring of administrative arrangements on 14 December 2011.

2. The Housing Supply and Affordability function was assumed from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) during 2011 due to a restructuring of administrative arrangements on 14 September 2010.

3. The Cultural Affairs, including Movable Cultural Heritage and Support for the Arts function was relinquished to the Department of the Prime Minister and Cabinet (PM&C) during 2011 due to a restructuring of administrative arrangements on 14 September 2010.

4. The net liabilities assumed from all entities were $0 (2011: $7,540,000).

5. The net liabilities relinquished to all entities were $28,827,000 (2011: net assets of $7,019,564,000).

6. In respect of functions assumed, the net book values of assets and liabilities were transferred to the entity for no consideration.

Note 11: Cash Flow Reconciliation 2012 2011 $'000 $'000Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement Cash and cash equivalents as per:

Cash flow statement 5,468 5,770Balance sheet 5,468 5,770

Difference - - Reconciliation of net cost of services to net cash from operating activities:

Net cost of services (595,047) (463,349)Add revenue from Government 466,251 404,976

Adjustments for non-cash items

Adjustments made directly to balance sheet1 (41,214) 24,834Other income not providing cash (17) (402)Depreciation / amortisation 42,652 40,936Net write down of non-financial assets 141 261Net (gains) / loss from sale of assets (101) (179)

Changes in assets / liabilities

(Increase) / decrease in net receivables 659 3,299(Increase) / decrease in accrued revenue 967 (2,954)(Increase) / decrease in prepayments and deposits (1,552) (2,442)(Increase) / decrease in inventories (1,495) 614Increase / (decrease) in employee provisions 13,704 316Increase / (decrease) in supplier payables 2,555 2,841Increase / (decrease) in other provisions 114,694 (22,954)Increase / (decrease) in other payables (2,804) 3,291Increase / (decrease) in grant liabilities 469 (208)

Net cash from (used by) operating activities (138) (11,120) 1. Balance sheet movements not related to operating activities: Refer to the Statement of Changes in Equity:

Adjustment for errors 28 (86)Adjustment for changes in accounting estimates - (2,235)Revaluation increment - make good provision (36,883) 43,113Appropriation reductions (496) (5,886)Restructuring 392 (77)

Movements relating to investing activities: Accrued asset purchases 1,754 (4,503)Additional make good provisions made (6,009) (5,492)

Total adjustments made directly to balance sheet (41,214) 24,834


Claims for damages

or costsTotal

2012 2011 2012 2011 $'000 $'000 $'000 $'000Contingent assets

Balance from previous period 4,214 3,953 4,214 3,953New contingent assets recognised 1,187 1,131 1,187 1,131Re-measurement (462) (27) (462) (27)Assets recognised (1,511) (843) (1,511) (843)

Total contingent assets 3,428 4,214 3,428 4,214 Net contingent assets (liabilities) 3,428 4,214

Quantifiable Contingencies

The Schedule of Contingencies contains $3,428,000 of contingent assets in respect to claims for damages/costs (2011: $4,214,000). The amount represents losses arising from events insured by the Australian Antarctic Division and insurance claims which are still pending as at 30 June 2012.

Unquantifiable Contingencies

As at 30 June 2012, the Department carries 1 instance of an unquantifiable contingent liability (2011: Nil).

Significant Remote Contingencies

The Department has entered into an arrangement with CIT Aerospace to guarantee Skytraders Pty Ltd financial performance of the A319 Airlink lease. The liability under the guarantee is capped at US$500 million; however this amount is then matched by the insurance obligations under the lease. The net effect is A$0.

2012: Nil(2011: Nil)

Note 13: Related Party Disclosures

Loans to Key Management Personnel or Key Management Personnel-Related Entities

In 2012, no loans were made to key management personnel or key management personnel-related entities (2011: Nil).

Other Transactions with Key Management Personnel or Key Management Personnel-Related Entities

In 2012, no grants were made to key management personnel or key management personnel-related entities (2011: Nil).

Note 14: Senior Executive Remuneration

Note 14A. Senior Executive Remuneration Expenses for the Reporting Period 2012 2011 $ $Short-term employee benefits:

Salary 11,271,585 12,650,022Annual leave accrued 1,120,001 1,276,887Performance bonuses - 14,470Motor vehicle and other allowances 354,377 604,717

Total short-term employee benefits 12,745,963 14,546,096 Post-employment benefits:

Superannuation 3,144,883 2,702,254Total post-employment benefits 3,144,883 2,702,254 Other long-term benefits:

Long-service leave 647,618 770,035Total other long-term benefits 647,618 770,035 Termination benefits - 399,395Total employment benefits 16,538,464 18,417,780

Notes:

1. Note 14A is prepared on an accrual basis (therefore the performance bonus expenses disclosed above differ from the cash ‘Bonus paid’ in Note 14B).

2. Note 14A excludes acting arrangements and part-year service where total remuneration expensed for a senior executive was less than $150,000.

3. One senior executive on secondment to another agency is included in the above table (2011: One).

4. Two senior executives on secondment to other agencies are excluded from the above table as the total remuneration expensed was less than $150,000 (2011: Nil).

5. No senior executives on secondment from other agencies are included in the above table (2011: One).

Note 14B. Average Annual Reportable Remuneration Paid to Substantive Senior Executives During the Reporting Period 2012

Average annual reportable remuneration1Senior

ExecutivesReportable

salary2Contributed

superannuation3Reportable

allowances4 Bonus paid5 Total No. $ $ $ $ $Total remuneration (including part-time arrangements):

less than $150,000 27 78,371 12,788 - - 91,159$150,000 to $179,999 6 134,171 30,913 - - 165,084$180,000 to $209,999 8 172,887 30,509 - - 203,396$210,000 to $239,999 18 181,208 45,807 - - 227,015$240,000 to $269,999 7 203,671 50,915 90 - 254,676$270,000 to $299,999 8 220,787 64,815 - - 285,602$300,000 to $329,999 2 202,772 105,114 - - 307,886$330,000 to $359,999 1 274,591 65,395 - - 339,986$360,000 to $389,999 1 226,237 140,288 - - 366,525$390,000 to $419,999 3 257,626 137,711 - - 395,337$450,000 to $479,999 1 170,251 286,228 - - 456,479$510,000 to $539,999 1 452,411 62,956 - - 515,367

Total 83 Notes:1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.2. 'Reportable salary' includes the following:

a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits); and c) exempt foreign employment income.

3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals' payment summaries.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial

years due to various factors such as individuals commencing with or leaving the Department during the financial year. 6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported

in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.7. One senior executive on secondment to another agency is included in the above table.8. No senior executives on secondment from other agencies are included in the above table.

Note 14B (Cont'd). Average Annual Reportable Remuneration Paid to Substantive Senior Executives During the Reporting Period

2011

Average annual reportable remuneration1Senior

ExecutivesReportable

salary2Contributed


allowances4 Bonus paid5 Total No. $ $ $ $ $Total remuneration (including part-time arrangements):

less than $150,000 22 71,026 18,105 - 658 89,789$150,000 to $179,999 3 143,617 23,888 - - 167,505$180,000 to $209,999 15 161,865 31,538 - - 193,403$210,000 to $239,999 19 183,945 39,533 45 - 223,523$240,000 to $269,999 10 207,733 46,506 24 - 254,263$270,000 to $299,999 7 207,892 80,498 - - 288,390$300,000 to $329,999 3 285,440 32,224 - - 317,664$330,000 to $359,999 5 238,252 103,498 - - 341,750$480,000 to $509,999 1 427,380 68,497 - - 495,877

Total 85

Notes:1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following:

a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);

b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits); and

c) exempt foreign employment income.

3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period,

including any salary sacrificed amounts, as per the individuals' payment summaries.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial

years due to various factors such as individuals commencing with or leaving the Department during the financial year.

6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported

in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.

7. One senior executive on secondment to another agency is included in the above table.

8. One senior executive on secondment from another agency is included in the above table.

Note 14C. Other Highly Paid Staff

2012

Average annual reportable remuneration1 StaffReportable

salary2Contributed


allowances4 Bonus paid5 Total No. $ $ $ $ $Total reportable remuneration (including part time arrangements): $150,000 to $179,999 64 128,535 32,031 9 - 160,575$180,000 to $209,999 10 150,933 38,570 - - 189,503$210,000 to $239,999 3 181,187 43,657 - - 224,844$240,000 to $269,999 1 214,693 26,435 - - 241,128$270,000 to $299,999 1 242,371 31,363 - - 273,734$390,000 to $419,999 1 211,732 199,358 - - 411,090Total 80

Notes:1. This table reports staff:

a) who were employed by the Department during the reporting period;

b) whose reportable remuneration was $150,000 or more for the financial period; and

c) were not required to be disclosed in Table B or director disclosures.

Each row is an averaged figure based on headcount for individuals in the band.





3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to staff in that reportable remuneration band during the reporting period, including any salary

sacrificed amounts, as per the individuals' payment summaries.



years due to various factors such as individuals commencing with or leaving the entity during the financial year.

6. Various salary sacrifice arrangements were available to other highly paid staff including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are

reported in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.

7. One employee on secondment from another agency is included in the above table.

Note 14C (Cont'd). Other Highly Paid Staff

2011

Average annual reportable remuneration1 StaffReportable

salary2Contributed


allowances4 Bonus paid5 Total No. $ $ $ $ $Total reportable remuneration (including part time arrangements): $150,000 to $179,999 23 136,820 24,586 - - 161,406$180,000 to $209,999 11 163,348 29,263 14 - 192,625$210,000 to $239,999 4 171,677 45,233 - - 216,910$240,000 to $269,999 1 220,121 21,088 - - 241,209$390,000 to $419,999 1 97,056 317,477 - - 414,533Total 40

Notes:1. This table reports staff:

a) who were employed by the Department during the reporting period;

b) whose reportable remuneration was $150,000 or more for the financial period; and

c) were not required to be disclosed in Table B or director disclosures.

Each row is an averaged figure based on headcount for individuals in the band.





3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to staff in that reportable remuneration band during the reporting period, including any salary

sacrificed amounts, as per the individuals' payment summaries.



years due to various factors such as individuals commencing with or leaving the entity during the financial year.

6. Various salary sacrifice arrangements were available to other highly paid staff including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are

reported in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.

Note 15: Remuneration of Auditors 2012 2011 $'000 $'000Financial statement audit services were provided free of charge to the Department by the Australian National Audit Office (ANAO). Fair value of the services provided

Financial statement audit services 490 490Total 490 490

No other services were provided by the auditors of the financial statements.

Note 16: Financial Instruments 2012 2011 $'000 $'000Note 16A. Categories of Financial Instruments Financial Assets Loans and receivables:

Cash on hand or on deposit 5,468 5,770Goods and services receivables 4,759 6,713Other receivables 898 930Accrued revenue - goods and services 3,842 4,809

Total 14,967 18,222Carrying amount of financial assets 14,967 18,222 Financial Liabilities At amortised cost:

Suppliers payable 21,581 19,026Grants payable 923 454Other payables 280 467Finance leases 5,052 6,777

Total 27,836 26,724Carrying amount of financial liabilities 27,836 26,724

Note 16B. Net Income and Expense from Financial Assets Loans and receivables

Reversal of impairment losses 30 278Impairment (452) (438)

Net gain/(loss) from loans and receivables (422) (160) Net gain/(loss) from financial assets (422) (160)

Note 16C. Net Income and Expense from Financial Liabilities Financial liabilities - at amortised cost

Write-downs of provisions and payables 136 2,913Net gain/(loss) from financial liabilities - at amortised cost 136 2,913 Net gain/(loss) from financial liabilities 136 2,913

Note 16D. Fair Value of Financial Instruments The fair value of all financial assets and liabilities approximate their carrying amounts.

Note 16E. Credit Risk The Department was exposed to minimal credit risk as loans and receivables were cash and trade receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of trade receivables (2012: $5,787,000 and 2011: $7,920,000).

The Department had assessed the risk of the default on payment and had allocated $130,000 in 2012 (2011: $277,000) to an impairment allowance account. The Department managed its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Department had policies and procedures that guided employees in debt recovery techniques that were to be applied.

The Department held no collateral to mitigate against credit risk.

The following table illustrates the Department's gross exposure to credit risk, excluding any collateral or credit enhancements. 2012 2011 $'000 $'000Financial assets Loans and receivables

Cash on hand or on deposit 5,468 5,770Goods and services receivables 4,759 6,713Other receivables 898 930Accrued revenue - goods and services 3,842 4,809

Total 14,967 18,222 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 2012 2011 2012 2011 $'000 $'000 $'000 $'000Loans and receivables

Cash on hand or on deposit 5,468 5,770 - -Goods and services receivables 2,881 3,809 1,878 2,904Other receivables 898 930 - -Accrued revenue - goods and services 3,842 4,809 - -

Total 13,089 15,318 1,878 2,904 Ageing of financial assets that were past due but not impaired for 2012 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000Loans and receivables

Goods and services and other receivables 816 471 3 588 1,878Total 816 471 3 588 1,878 Ageing of financial assets that were past due but not impaired for 2011 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000Loans and receivables

Goods and services and other receivables 1,458 1,090 99 257 2,904Total 1,458 1,090 99 257 2,904

Note 16F. Liquidity Risk The Department’s financial liabilities are trade creditors, grant payables and finance leases. 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 as the Department is appropriated funding from the Australian Government and the Department manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Department has policies in place to ensure timely payments are made when due and has no past experience of default.

The following tables illustrate the maturities for financial liabilities.

Maturities for non-derivative financial liabilities 2012 On Within 1 1 to 2 2 to 5 > 5 demand year years years years Total $'000 $'000 $'000 $'000 $'000 $'000Other liabilities Suppliers payable - 21,581 - - - 21,581Grants payable - 923 - - - 923Other payables including lease incentives - 280 - - - 280Finance lease - 2,429 2,366 257 - 5,052Total - 25,213 2,366 257 - 27,836 Maturities for non-derivative financial liabilities 2011 On Within 1 1 to 2 2 to 5 > 5 demand year years years years Total $'000 $'000 $'000 $'000 $'000 $'000Other liabilities Suppliers payable - 19,026 - - - 19,026Grants payable - 454 - - - 454Other payables including lease incentives - 467 - - - 467Finance lease - 2,133 2,323 2,321 - 6,777Total - 22,080 2,323 2,321 - 26,724

The Department had no derivative financial liabilities in either 2012 or 2011.

Note 16G. Market Risk The Department held basic financial instruments that did not expose the Department to certain market risks, such as 'Currency risk' and 'Other price risk'.

The only interest-bearing item on the balance sheet was 'Finance leases'. Finance leases bear interest at a fixed interest rate and their values did not fluctuate due to changes in the market interest rate.

Note 17: Financial Assets Reconciliation 2012 2011 $'000 $'000Financial assets Notes Total financial assets as per balance sheet 87,406 91,310Less: non-financial instrument components

Appropriation receivables 67,771 69,627GST receivable from the ATO 4,668 3,461

Total non-financial instrument components 72,439 73,088Total financial assets as per financial instruments note 16A 14,967 18,222

Note 18: Administered – Expenses 2012 2011 $'000 $'000Note 18A. Suppliers Goods and services Contractors 14,358 34,355General goods and services 55,273 49,300Information and communication technology - 20Inventory consumed 155 79Travel 82 63Property related expenses 8,122 3,948Consultants 5,110 8,996Legal services 1,484 1,274Total goods and services 84,584 98,035 Goods and services are made up of: Provision of goods – related entities 150 62Provision of goods – external parties 224 83Rendering of services – related entities 59,358 57,616Rendering of services – external parties 24,852 40,274Total goods and services 84,584 98,035

Total supplier expenses 84,584 98,035

Note 18B. Subsidies Payable to external parties:

National Rental Affordability Scheme 11,025 9,713Total subsidies 11,025 9,713

2012 2011 $'000 $'000Note 18C. Grants Public sector:

Australian Government entities (related entities) 13,511 80,172State and Territory Governments 206,899 200,313Local Governments 144,271 153,635

Private sector: Non-profit organisations 255,072 210,903Profit-making entities 71,130 45,403Individuals 5,804 10,704Universities 20,929 21,321Overseas 358 1,531

Total grants 717,974 723,982 The grants relate to the following programs Sustainable Rural Water Use and Infrastructure Program 191,767 59,158Caring for Our Country 141,665 165,460National Urban Water and Desalination Plan 88,865 46,001Housing Affordability Fund 68,215 30,648National Water Security Plan for Cities and Towns 61,105 14,654Working on Country 51,958 42,352Biodiversity Fund 31,192 -Water Smart Australia 23,916 156,409Commonwealth Environment Research Facilities 16,796 16,483Environmental Stewardship Program 13,245 13,305Murray Environmental Flows 7,500 7,500Protecting and Conserving Historic Built Assets 4,654 4,422Indigenous Heritage Program 3,645 3,640Community Heritage Program 3,385 -Community Infrastructure Grants 2,650 -Green Precincts 2,434 5,187Australian Biological Resources Study Participatory Program 1,811 1,884International Whale Science Initiative 1,628 1,740National Trusts Partnership Program 927 927Other Grants 370 687National Rainwater and Greywater Initiative 246 2,265Screen Australia - 49,427Cultural Development Program - 35,555Restoring the Balance in the Basin - 10,000National Indigenous Television - 7,617Tasmanian Forests - 3,341Jobs Fund – Heritage Projects to Support Local Jobs - 2,788Kokoda Track assistance to PNG - 1,107Indigenous Art Culture and Language 41,425Total grants 717,974 723,982

2012 2011 $'000 $'000Note 18D. Depreciation Depreciation:

Buildings - 1,138Property plant and equipment 12 11

Total depreciation 12 1,149

Note 18E. Write-Down and Impairment of Assets Asset write-downs and impairments from:

Impairment on financial instruments 402 160Impairment on intangible assets 74,262 183,903

Total write-down and impairment of assets 74,664 184,063

During 2012, impairment on intangible assets includes impairment on water assets held by the Living Murray Initiative of $11,799,000 (2011: $23,510,400) (refer to Note 21E).

Note 18F. Payments to CAC Bodies Australia Council - 131,461Australian Film Television and Radio School - 13,852Australian National Maritime Museum - 12,979National Film and Sound Archive - 14,366National Gallery of Australia - 17,266National Library of Australia - 28,644National Museum of Australia - 28,993Screen Australia - 15,000Total payments to CAC Bodies - 262,561

Note 18G. Other Expenses Other 39 400Total other expenses 39 400

Note 19: Administered – Income 2012 2011 $'000 $'000OWN-SOURCE REVENUE Taxation Revenue Note 19A. Other Taxes Levies 1,369 1,210Total other taxes 1,369 1,210

Non-Taxation Revenue Note 19B. Sale of Goods and Rendering of Services Provision of goods - external parties 267 183Rendering of services - related entities 216 5Rendering of services - external parties 356 536Total sale of goods and rendering of services 839 724

Note 19C. Fees and Fines Licence fees 3,560 1,000Other fees from regulatory services 8,631 780Fines 59 58Total fees and fines 12,250 1,838

Note 19D. Interest Loans - State and Territory Governments 894 1,074Total interest 894 1,074

Note 19E. Grant Repayments Grant repayments 7,669 11,394Total grant repayments 7,669 11,394

2012 2011 $'000 $'000GAINS Note 19F. Reversals of Previous Asset Write-Downs and Impairments Reversal of impairment losses 3,677 178Total reversals of previous asset write-downs and impairments 3,677 178

Note 19G. Other Gains Assets received free of charge 16,301 8,805Audit services received free of charge for NHT 65 65Assets now recognised 34,917 8,864Other 312 288Total other gains 51,595 18,022

Note 20: Administered – Financial Assets 2012 2011 $'000 $'000Note 20A. Cash and Cash Equivalents Cash on hand or on deposit - 20Total cash and cash equivalents - 20

Note 20B. Trade and Other Receivables Good and Services:

Goods and services - external parties 1,213 1,826Total receivables for goods and services 1,213 1,826 Advances and Loans

State and Territory Governments 8,116 10,039Total advances and loans 8,116 10,039 Other receivables:

GST receivable from the Australian Taxation Office 16,837 7,189Interest 165 209Other 109 48

Total other receivables 17,111 7,446Total trade and other receivables (gross) 26,440 19,311 Less impairment allowance account:

Other receivables (317) (358)Total impairment allowance account (317) (358)Total trade and other receivables (net) 26,123 18,953 Receivables are expected to be recovered in:

No more than 12 months 20,125 10,837More than 12 months 5,998 8,116

Total trade and other receivables (net) 26,123 18,953 Receivables were aged as follows:


0 to 30 days 202 9831 to 60 days 2 1261 to 90 days - -More than 90 days 415 1,246

Total receivables (gross) 26,440 19,311

The impairment allowance account is aged as follows: Overdue by:

More than 90 days (317) (358)Total impairment allowance account (317) (358)

All receivables excluding GST receivable from Australian Taxation Office are with entities external to the Australian Government. Credit terms are within 30 days (2011: 30 days).

Loans to State and Territory Governments are made under financial assistance legislation for periods up to 40 years. No security is generally required. Principal is repaid in half yearly instalments over the life of the loan. Interest rates are fixed. Effective interest rates average 9.5% (2011: 9.5%). Principal and interest payments are due twice annually.

Reconciliation of the Impairment Allowance Account: Movements in relation to 2012

Other

receivables Total $'000 $'000Opening balance (358) (358)

Amounts written off 40 40Amounts recovered and reversed 1 1

Closing balance (317) (317) Movements in relation to 2011

Other

receivables Total $'000 $'000Opening balance (772) (772)

Amounts written off 220 220Amounts recovered and reversed 194 194

Closing balance (358) (358)

2012 2011 $'000 $'000Note 20C. Other Investments Director of National Parks 238,938 253,204Sydney Harbour Federation Trust 331,823 330,585Total other investments 570,761 583,789 Other investments are expected to be recovered in:

More than 12 months 570,761 583,789Total other investments 570,761 583,789

Refer to Note 25 for details on the principal activities of each of the Department's administered investments.

Note 21: Administered – Non-Financial Assets 2012 2011 $'000 $'000Note 21A. Land Land:

Land at fair value 1,467 1,467Total land 1,467 1,467

No indicators of impairment were found for land.

No land is expected to be sold or disposed of within the next 12 months.

Note 21B. Property, Plant and Equipment Heritage and cultural:

Fair value 1,060 1,059Total heritage and cultural 1,060 1,059

Other property, plant and equipment1: Fair value 490,987 423,045

Total other property, plant and equipment 490,987 423,045Total property, plant and equipment 492,047 424,104

1. Other property, plant and equipment relates to the Departments 20% share in the River Murray Operations joint venture (Refer to Note 21E).

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

TABLE A: Reconciliation of the Opening and Closing Balances of Land and Buildings, and Property, Plant and Equipment (2011-12)

Land Buildings

Total land and

buildings

Other property, plant and

equipment2

Heritageand

cultural1, 2 Total3

$’000 $’000 $’000 $’000 $’000 $’000As at 1 July 2011 Gross book value 1,467 - 1,467 423,045 1,059 425,571Accumulated depreciation and impairment - - - - - -Net book value 1 July 2011 1,467 - 1,467 423,045 1,059 425,571 Additions:

From jointly controlled assets in River Murray Operations JV - - - 34,917 - 34,917Revaluations and impairments recognised in other comprehensive income - - - 33,025 13 33,038Depreciation expense - - - - (12) (12)Net book value 30 June 2012 1,467 - 1,467 490,987 1,060 493,514 Net book value as of 30 June 2012 represented by: Gross book value 1,467 - 1,467 490,987 1,060 493,514Accumulated depreciation and impairment - - - - - - 1,467 - 1,467 490,987 1,060 493,514


2. Refer to Note 21B.


.

TABLE A (Cont'd): Reconciliation of the Opening and Closing Balances of Land and Buildings, and Property, Plant and Equipment (2010-11)

Land Buildings

Total land and

buildings

Other property, plant and

equipment2

Heritageand

cultural1, 2 Total3

$’000 $’000 $’000 $’000 $’000 $’000As at 1 July 2010 Gross book value 1,467 39,068 40,535 405,968 1,047 447,550Accumulated depreciation and impairment - (4,899) (4,899) - - (4,899)Net book value 1 July 2010 1,467 34,169 35,636 405,968 1,047 442,651Additions:

By purchase - 88 88 - - 88From jointly controlled assets in River Murray Operations JV - - - 8,864 - 8,864

Revaluations and impairments recognised in other comprehensive income - - - 8,213 23 8,236Depreciation expense - (1,138) (1,138) - (11) (1,149)Disposals:

From disposal of entities or operations (including restructuring) - (33,119) (33,119) - - (33,119)Net book value 30 June 2011 1,467 - 1,467 423,045 1,059 425,571 Net book value as of 30 June 2011 represented by: Gross book value 1,467 - 1,467 423,045 1,059 425,571Accumulated depreciation and impairment - - - - - - 1,467 - 1,467 423,045 1,059 425,571


2. Refer to Note 21B.


2012 2011 $'000 $'000Note 21C. Intangibles Water assets:

Purchased 2,132,667 1,673,288Purchased - pending registration 157,126 1,680Accumulated impairment losses (352,956) (282,370)

Total water assets 1,936,837 1,392,598 Computer software:

Internally developed – in progress 5,791 3,265Total computer software 5,791 3,265

Total intangibles 1,942,628 1,395,863

No intangibles are expected to be sold or disposed of within the next 12 months.

TABLE B: Reconciliation of the Opening and Closing Balances of Intangibles (2011-12)

Water

Assets

Computer software

internally developed Total

$’000 $’000 $’000As at 1 July 2011 Gross book value 1,674,968 3,265 1,678,233Accumulated amortisation and impairment (282,370) - (282,370)Net book value 1 July 2011 1,392,598 3,265 1,395,863 Additions:

By purchase or internally developed 598,524 2,526 601,050Assets received free of charge 15,771 - 15,771From jointly controlled assets in Living Murray Initiative JV 530 - 530

Impairments recognised in the operating result (74,262) - (74,262)Reversal of impairments recognised in the operating result 3,676 - 3,676Net book value 30 June 2012 1,936,837 5,791 1,942,628 Net book value as of 30 June 2012 represented by: Gross book value 2,289,793 5,791 2,295,584Accumulated amortisation and impairment (352,956) - (352,956) 1,936,837 5,791 1,942,628

TABLE B (Cont'd): Reconciliation of the Opening and Closing Balances of Intangibles (2010-11)

Water assets

Computer software internally

developed Total $’000 $’000 $’000As at 1 July 2010 Gross book value 1,263,128 665 1,263,793Accumulated amortisation and impairment (100,128) - (100,128)Net book value 1 July 2010 1,163,000 665 1,163,665 Additions:

By purchase or internally developed 403,306 2,600 405,906Assets received free of charge 8,330 - 8,330From jointly controlled assets in Living Murray Initiative JV 475 - 475

Impairments recognised in the operating result (183,903) - (183,903)Other movements 1,390 - 1,390Net book value 30 June 2011 1,392,598 3,265 1,395,863 Net book value as of 30 June 2011 represented by: Gross book value 1,674,968 3,265 1,678,233Accumulated amortisation and impairment (282,370) - (282,370) 1,392,598 3,265 1,395,863

2012 2011 $'000 $'000Note 21D. Inventories Inventories held for sale 11,896 12,104Total inventories 11,896 12,104

During 2012, $207,660 of inventory held for sale was recognised as an expense (2011: $46,655).No items of inventory were recognised at fair value less cost to sell.All inventory is expected to be sold or disposed of in the next 12 months.

No indicators of impairment were found for other non-financial assets.

Note 21E. Jointly Controlled Assets The Department is a venturer in the following jointly controlled assets: Share of Output Principal 2012 2011 activity % %Jointly Controlled Assets:

River Murray Operations JV 20 20Living Murray Initiative JV 20 20

The Department’s interest, as a venturer, in assets employed in the above jointly controlled assets is detailed below. The amounts are included in the financial statements under their respective asset categories: 2012 2011 $’000 $’000Jointly Controlled Assets: Non-current assets

Land and buildings: River Murray Operations 1,467 1,467

Property, plant and equipment: River Murray Operations 490,987 423,045

Water assets: River Murray Operations 814 814Living Murray initiative 99,599 107,192

Total non-current assets 592,867 532,518Total assets 592,867 532,518

Note 22: Administered – Payables 2012 2011 $'000 $'000Note 22A. Suppliers Trade creditors and accruals 8,715 5,175Total suppliers 8,715 5,175 Supplier payables expected to be settled within 12 months:

Related entities 6,971 -External parties 1,744 5,175

Total 8,715 5,175 Total suppliers 8,715 5,175

Settlement was usually made within 30 days

Note 22B. Subsidies Payable to external entities - 3,883Total subsidies - 3,883 Total subsidies - are expected to be settled in:

No more than 12 months - 3,883Total subsidies - 3,883

Note 22C. Grants Public sector:


Private sector: Non-profit organisations 2,972 9,897Profit making entities 12,615 1,072Individuals 9 2,756Universities 133 41Overseas 100 75

Total grants 33,334 45,853 Total grants - are expected to be settled in:

No more than 12 months 33,334 45,853Total grants 33,334 45,853

Settlement was made according to the terms and conditions of each grant within 30 days of performance or eligibility.

Note 23: Administered – Cash Flow Reconciliation 2012 2011 $'000 $'000

Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement Cash and cash equivalents as per:

Schedule of administered cash flows - 20Schedule of administered assets and liabilities - 20


Net cost of services (810,005) (1,245,463) Adjustments for non-cash items

Restructuring 28,827 6,919Adjustment for errors 45 (1,201)Other income not providing cash (51,218) (17,669)Depreciation / amortisation 12 1,149Net write down of non-financial assets 70,586 183,973Other expenses not requiring cash (57,353) (58,399)


(Increase) / decrease in net receivables (9,093) 891(Increase) / decrease in inventories 208 1,262(Increase) / decrease in other non financial assets - 378Increase / (decrease) in supplier payables 3,540 1,219Increase / (decrease) in subsidies payable (3,883) 3,883Increase / (decrease) in grants payable (12,519) 2,339

Net cash from (used by) operating activities (840,853) (1,120,719)

Note 24: Administered – Contingent Assets and Liabilities

Quantifiable Administered Contingencies

There are no quantifiable contingencies in either the current or the immediately preceding reporting periods, therefore there is no schedule for such items.

Unquantifiable Administered Contingencies

As at 30 June 2012, the Department carries 1 instance of an unquantifiable administered contingent liability, whilst this contingency is considered remote, it has been reported for completeness (2011: Nil).

Significant Remote Administered Contingencies

The Department had no significant remote administered contingencies (2011: Nil).

Note 25: Administered – Investments

The principal activities of each of the Department's administered investments were as follows (Refer to Note 20C): Director of National ParksAssists the Minister and the Department in the conservation and appreciation of Australia's biological diversity and associated cultural heritage, through leadership and cooperation in the management of the Commonwealth's protected areas.

Sydney Harbour Federation TrustIs responsible for planning, managing, conserving, enhancing and making publicly accessible certain lands on or near the foreshores of Sydney Harbour.

Note 26: Administered – Financial Instruments 2012 2011 $'000 $'000Note 26A. Categories of Financial Instruments Financial Assets Loans and receivables:

Cash and cash equivalents - 20Advances and loans 8,116 10,039Goods and services and other receivables 1,170 1,725

Total loans and receivables 9,286 11,784 Carrying amount of financial assets 9,286 11,784 Financial Liabilities At amortised cost:

Trade creditors and accruals 8,715 5,175Grants payable 33,334 45,853Subsidies payable - 3,883

Total financial liabilities at amortised cost 42,049 54,911 Carrying amount of financial liabilities 42,049 54,911

Note 26B. Net Income and Expense from Financial Assets Loans and receivables Interest revenue 894 1,074Impairment (402) (160)Net gain/(loss) from loans and receivables 492 914 Net gain/(loss) from financial assets 492 914

Note 26C. Net Income and Expense from Financial Liabilities There have been no net gains/(losses) recorded for financial liabilities in 2012 financial year (2011: nil).

Note 26D. Fair Value of Financial Instruments The fair value of all financial assets and liabilities approximate their carrying amounts.

Note 26E. Credit Risk

The administered activities of the Department were not exposed to a high level of credit risk as the majority of financial assets are cash, receivables, advances and loans to State and Territory Governments.

The Department manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Department has policies and procedures that guide employees in the debt recovery techniques that are to be applied.

The Department has assessed the risk of the default on payment and has allocated the following amounts to an impairment allowance account: Other receivables $317,000 (2011: $358,000).

The following table illustrates the Department's gross exposure to credit risk, excluding any collateral or credit enhancements. 2012 2011 $'000 $'000Financial assets Loans and receivables

Cash and cash equivalents - 20Advances and loans 8,116 10,039Goods and services and other receivables 1,170 1,725

Total 9,286 11,784 The Department holds no collateral to mitigate against 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 2012 2011 2012 2011 $'000 $'000 $'000 $'000Financial assets Loans and receivables

Cash and cash equivalents - 20 - -Advances and loans 8,116 10,039 - -Goods and services and other receivables 868 727 302 998

Total 8,984 10,786 302 998 Ageing of financial assets that were past due but not impaired for 2012 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000Loans and receivables

Other receivables 202 2 - 98 302Total 202 2 - 98 302 Ageing of financial assets that were past due but not impaired for 2011 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000Loans and receivables

Other receivables 98 12 - 888 998Total 98 12 - 888 998

Note 26F. Liquidity Risk

The Department’s financial liabilities are trade creditors 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 financial liabilities. This is highly unlikely as the Department is appropriated funding from the Australian Government and the Department manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Department has policies in place to ensure timely payment are made when due and has no past experience of default. The following tables illustrate the maturities for financial liabilities. Maturities for non-derivative financial liabilities 2012

On

demandWithin 1

year1 to 2 years

2 to 5 years >5 years Total

$'000 $'000 $'000 $'000 $'000 $'000Other liabilities

Trade creditors and accruals - 8,715 - - - 8,715 Grants payable - 33,334 - - - 33,334 Subsidies payable - - - - - -

Total - 42,049 - - - 42,049

Maturities for non-derivative financial liabilities 2011

On

demandWithin 1

year1 to 2 years

2 to 5 years >5 years Total

$'000 $'000 $'000 $'000 $'000 $'000Other liabilities

Trade creditors and accruals - 5,175 - - - 5,175 Grants payable - 45,853 - - - 45,853 Subsidies payable - 3,883 - - - 3,883

Total - 54,911 - - - 54,911

The Department had no derivative financial liabilities in either 2012 or 2011.

Note 26G. Market Risk The Department holds basic financial instruments that do not expose the Department to certain market risks. The Department is not exposed to 'Currency Risk'.

Interest Rate Risk

The only interest bearing items on the balance sheet are the ‘Loans to State and Territory Governments’. These items have fixed interest and will not fluctuate due to changes in the market interest rate.

Other Price Risk

The Department’s administered activities are not exposed to “Other Price Risk’. Its administered investments are not traded on the Australian Stock Exchange. It does not hold any other financial instruments that would be exposed to price risk.

Note 27: Administered – Financial Assets Reconciliation 2012 2011 $'000 $'000Financial assets Notes Total financial assets as per schedule of administered assets and liabilities

596,884 602,762

Less: non-financial instrument components GST receivable from the Australian Taxation Office 16,837 7,189Other investments 570,761 583,789

Total non-financial instrument components 587,598 590,978Total financial assets as per financial instruments note 26A 9,286 11,784

Note 28: Appropriations Table A. Annual Appropriations ('Recoverable GST exclusive') 2012 Appropriations Appropriation

applied in 2012 (current and prior years)

Variance

Appropriation Act FMA ActTotal

appropriation Annual

AppropriationAppropriations

reduced1 Section 30 Section 31 Section 32 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL

Ordinary annual services 515,334 (15,000) 10,685 91,576 (3,453) 599,142 (599,146) (4)Other services

Equity2 1,545 - - - 1,545 (708) 837Total departmental 516,879 (15,000) 10,685 91,576 (3,453) 600,687 (599,854) 833ADMINISTERED

Ordinary annual services Administered items3 1,387,038 (447,791) 2,131 (118,257) 823,121 (828,642) (5,521)Payments to CAC Act bodies - - - - - - -

Other services States, ACT, NT and Local government4 78,432 (39,302) - (30,000) 9,130 (7,247) 1,883Administered assets and liabilities5 410,889 - - - 410,889 (542,796) (131,907)Payments to CAC Act bodies - - - - - - -

Total administered 1,876,359 (487,093) 2,131 (148,257) 1,243,140 (1,378,685) (135,545)

Notes:

1. Appropriations reduced under Appropriation Acts (Nos. 1, 3 & 5) 2011-12: sections 10, 11, and 12 and under Appropriation Acts (Nos. 2, 4 & 6) 2011-12: sections 12, 13, and 14.

Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the

Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. On 26 June 2012, the

Finance Minister determined a reduction in departmental appropriations following a request by the Minister for Sustainability, Environment, Water, Population and Communities. The amount

of the reduction determined under Appropriation Act (No. 3) 2011-12 was $15,000,000.

As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that

appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos 1, 3 & 5) 2011-12 and section 12 of Appropriation Acts (Nos 2,4 & 6) 2011-12, the

appropriation is taken to be reduced to the required amount specified in Table F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by

a Finance Minister’s determination, which is disallowable by Parliament. The appropriation reduced due to the tabling of the 2010-11 annual report was $1,028,870,977.01, which included

$50,206,372.77 for Outcome 6. On 21 May 2012, the Finance Minister issued a determination to reduce administered appropriations following a request by the Minister. The amount of the

reduction under Appropriation Act (No 1) 2010-11 Outcome 6 was $51,852,562.41.

In 2012, there were no adjustments that met the recognition criteria of a formal addition or reduction in revenue (in accordance with FMOs Division 101) but at law the appropriations had not

been amended before the end of the reporting period.

2. ‘Equity’ – This variance represents funding that will be applied to complete several software development projects.

3. ‘Administered items’ – This variance represents the current year retention funding of $29,509,000 less the prior year retention funding expended in the current year of $35,030,000 (refer

Table F).

4. ‘States, ACT, NT and Local government’ – The $1,883,000 represents current year retention funding.

5. ‘Administered assets and liabilities’ - This appropriation primarily relates to the Restoring the Balance in the Murray-Darling Basin (Water Purchasing) program. Water entitlement purchases

are only pursued when there is enough uncommitted appropriation in the year a water purchase tender is commenced. Due to the time between the opening of a tender to the settlement of

trades (tender opening and assessment, conveyance, including obtaining state trade approval) the water purchasing program will necessarily have unspent appropriations each year.

Table A (Cont'd). Annual Appropriations ('Recoverable GST exclusive') 2011 Appropriations

Appropriation applied in 2011

(current and prior years) Variance

Appropriation Act FMA ActTotal

appropriation Annual

AppropriationAppropriations

reduced1 Section 30 Section 31 Section 32 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL

Ordinary annual services2 488,898 (164) 13,386 76,601 (53,977) 524,744 (513,858) 10,886Other services

Equity 2,467 - - (218) 2,249 (2,249) -Total departmental 491,365 (164) 13,386 76,601 (54,195) 526,993 (516,107) 10,886ADMINISTERED

Ordinary annual services Administered items3 1,829,057 (1,014,962) 6,180 66,993 887,268 (869,892) 17,376Payments to CAC Act bodies 378,446 - - (115,888) 262,558 (262,558) -

Other services States, ACT, NT and Local government4 20,721 (13,909) - - 6,812 (6,999) (187)Administered assets and liabilities5 465,759 - - - 465,759 (339,583) 126,176Payments to CAC Act bodies 29,755 - - (5,038) 24,717 (24,717) -

Total administered 2,723,738 (1,028,871) 6,180 (53,933) 1,647,114 (1,503,749) 143,365

Notes:

1. Appropriations reduced under Appropriation Acts (Nos. 1 & 3) 2010-11: sections 10, 11, 12 and 15 and under Appropriation Acts (Nos. 2 & 4) 2010-11: sections 12, 13, 14 and 17.

Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the

Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. On 30 June 2011, the

Finance Minister issued a determination to reduce departmental appropriations following a request by the Minister for Sustainability, Environment, Water, Population and Communities. The

amount of the reduction under Appropriation Act (No. 1) 2010-11 was: $164,187.

As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that

appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos. 1, 3 & 5) 2010-11 and section 12 of Appropriation Acts (Nos. 2, 4 & 6) 2010-11, the

appropriation is taken to be reduced to the required amount specified in Table F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by

a Finance Minister’s determination, which is disallowable by Parliament. In 2011 there were no reductions made to Administered appropriations via Finance Minister’s determination.

In 2011, there were no adjustments that met the recognition criteria of a formal addition or reduction in revenue (in accordance with FMOs Division 101) but at law the appropriations had not

been amended before the end of the reporting period.

2. ‘Departmental Ordinary annual services’ – The purpose of Departmental appropriations is to provide money for the annual operating costs of agencies and Departmental appropriations do

not lapse at financial year end. The appropriation applied in 2011 is the cash paid and appropriation is being carried forward to meet costs incurred in 2011, but not yet paid.

3. ‘Administered items’ – This variance represents the current year retention funding of $40,965,000 less the prior year retention funding expended in the current year of $23,589,000 (refer

Table F).

4. ‘States, ACT, NT and Local government’ – The $187,000 is due to the spend of prior year retention funding in the current year.

5. ‘Administered assets and liabilities’ - This appropriation primarily relates to the Restoring the Balance in the Murray-Darling Basin (Water Purchasing) program. Water entitlement purchases

are only pursued when there is enough uncommitted appropriation in the year a water purchase tender is commenced. Due to the time between the opening of a tender to the settlement of

trades (tender opening and assessment, conveyance, including obtaining state trade approval) the water purchasing program will necessarily have unspent appropriations each year.

Table B. Departmental and Administered Capital Budgets ('Recoverable GST exclusive')

2012 Capital Budget Appropriations Capital Budget Appropriations applied in 2012

(current and prior years)

Variance5

Appropriation Act FMA Act Total Capital Budget

Appropriations

Payments for non-financial

assets3

Payments for other

purposes4 Total payments Annual Capital

BudgetAppropriations

reduced2 Section 32 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL

Ordinary annual services - Departmental Capital Budget1 29,513 - - 29,513 (32,326) (1,054) (33,380) (3,867)

Notes:

1. Departmental Capital Budgets are appropriated through Appropriation Acts (No.1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation

Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.

2. Appropriations reduced under Appropriation Acts (No.1, 3 & 5) 2011-12: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.

3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and

the capital repayment component of finance leases.

4. The Department received $56,347,000 in Appropriation Act (No. 3) 2011-12 for Departmental ordinary annual services, which was comprised of $57,401,000 for operating purposes and a

reduction of $1,054,000 against the Departmental Capital Budget (DCB). The reduction to the DCB was required as forward year budget estimates provided for operating purpose were

transferred for capital purposes following a restructuring of administrative arrangements in 2011. The Department of Finance and Deregulation approved for the Department to draw down

$1,054,000 from the DCB for operating purposes to achieve this notional split of the amount received under Appropriation Act (No. 3) 2011-12.

5. The variance of $3,867,000 represents amounts from the 2011 DCB expended in the current year.

Table B (Cont'd). Departmental and Administered Capital Budgets ('Recoverable GST exclusive')

2011 Capital Budget Appropriations Capital Budget Appropriations applied in 2011

(current and prior years)

Variance4

Appropriation Act FMA Act Total Capital Budget

Appropriations

Payments for non-financial

assets3

Payments for other

purposes Total payments Annual Capital

BudgetAppropriations

reduced2 Section 32 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL

Ordinary annual services - Departmental Capital Budget1 31,690 - (792) 30,898 (26,910) - (26,910) 3,988

Notes:

1. Departmental Capital Budgets are appropriated through Appropriation Acts (No.1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation

Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.

2. Appropriations reduced under Appropriation Acts (No.1, 3 & 5) 2010-11: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.

3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and

the capital repayment component of finance leases.

4. The variance of $3,988,000 represents funding of $2,691,000 to pay year end accruals for capital projects and funding of $1,297,000 carried forward to 2012.

Table C. Unspent Annual Appropriations ('Recoverable GST exclusive')

Authority2012 2011$'000 $'000

DEPARTMENTAL Appropriation Act (No. 1) 2010-11 - 68,510Appropriation Act (No. 1) 2011-12 66,932 -Appropriation Act (No. 2) 2011-12 - Non Operating - Equity Injection 837 -Total 67,769 68,510ADMINISTERED Appropriation (Water Entitlements) (Act 2) 2009-10 - Non Operating - Admin Assets and Liabilities 2009-10 - 183,325Appropriation Act (No. 1) 2010-11 - 663,949Appropriation Act (No. 2) 2010-11 - Administered Assets and Liabilities 204,555 261,203Appropriation Act (No. 2) 2010-11 - SPP - 4,506Appropriation Act (No. 4) 2010-11 - Administered Assets and Liabilities - 157,000Appropriation Act (No. 1) 2011-12 253,919 -Appropriation Act (No. 2) 2011-12 - Administered Assets and Liabilities 265,065 -Appropriation Act (No. 2) 2011-12 - SPP 27,586 -Appropriation Act (No. 3) 2011-12 6,418 -Appropriation Act (No. 4) 2011-12 - SPP 800 -Total 758,343 1,269,983

Table D. Special Appropriations ('Recoverable GST exclusive')

Authority Type Purpose

Appropriation applied

2012 2011$'000 $'000

Financial Management and Accountability Act 1997 s.28(2), Administered

Refund

To provide an appropriation where an Act or other law requires or permits the repayment of an amount received by the Commonwealth and apart from this section there is no specific appropriation for the repayment. 5 8

Total 5 8

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. Further details of the Department’s compliance with section 83 are disclosed at Note 29A.

Table E. Disclosure by Agent in Relation to Annual and Special Appropriations ('Recoverable GST exclusive') Department of the Prime Minister and Cabinet2012 $'000Total receipts -Total payments - Department of the Prime Minister and Cabinet2011 $'000Total receipts 87,806Total payments 87,806

TABLE F. Reduction in Administered Items ('Recoverable GST exclusive')

2012 Amount required3 - by Appropriation Act

Total amount required3

Total amount appropriated4 Total reduction5

Ordinary Annual Services Act (No.1) Act (No.3) Outcome 1 262,277,798.48 34,929,384.04 297,207,182.52 327,401,000.00 30,193,817.48Outcome 2 58,384,171.41 0 58,384,171.41 60,803,165.96 2,418,994.55Outcome 3 0 0 0 0 0Outcome 4 452,901,211.90 0 452,901,211.90 866,780,000.00 413,878,788.10Outcome 5 12,497,589.08 0 12,497,589.08 13,797,000.00 1,299,410.92

Other services Act (No. 2) Act (No. 4)

Specific payments to States, ACT, NT and Local government

Outcome 4 9,130,164.23 0 9,130,164.23 47,632,000.00 38,501,835.77Outcome 5 0 0 0 800,000.00 800,000.00

Notes:

1. Numbers in this section of the table must be disclosed to the cent.

2. Administered items for 2012 were reduced to these amounts when these financial statements were tabled in Parliament as part of the Department's 2012 annual report. This reduction was

effective in 2013, but the amounts were reflected in Table A in the 2012 financial statements in the column 'Appropriations reduced' as they were adjustments to 2012 appropriations.

3. Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).

4. Total amount appropriated in 2012.

5. Total reduction effective in 2013.

TABLE F (Cont'd). Reduction in Administered Items ('Recoverable GST exclusive')

2011 Amount required3 - by Appropriation Act

Total amount required3

Total amount appropriated4 Total reduction5

Ordinary Annual Services Act (No.1) Act (No.3) Outcome 1 280,838,170.09 0 280,838,170.09 389,137,000.00 108,298,829.91Outcome 2 1,616,921.34 0 1,616,921.34 1,640,000.00 23,078.66Outcome 3 0 0 0 0 0Outcome 4 408,510,467.28 0 408,510,467.28 1,264,815,000.00 856,304,532.72Outcome 5 143,524,139.98 0 143,524,139.98 143,652,822.04 128,682.06Outcome 6 44,794,149.59 0 44,794,149.59 96,646,712.00 51,852,562.41Outcome 7 0 158,000.00 158,000.00 158,000.00 0

Other services Act (No. 2) Act (No. 4) Specific payments to States, ACT, NT and

Local government

Outcome 4 5,615,519.11 1,196,000.00 6,811,519.11 20,721,000.00 13,909,480.89

Notes:

1. Numbers in this section of the table must be disclosed to the cent.

2. Administered items for 2011 were reduced to these amounts when these financial statements were tabled in Parliament as part of the Department's 2011 annual report. This reduction was

effective in 2012, but the amounts were reflected in Table A in the 2011 financial statements in the column 'Appropriations reduced' as they were adjustments to 2011 appropriations.

3. Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).

4. Total amount appropriated in 2011.

5. Total reduction effective in 2012.


Note 29A. 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 and Deregulation provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

During 2011-12, the Department developed a plan to review exposure to risks of not complying with statutory conditions on payments from appropriations. The plan involved:

identifying each special appropriation and special account; determining the risk of non-compliance by assessing the statutory conditions and the extent to which

existing payment systems and processes satisfy those conditions; and obtaining legal advice as appropriate to resolve questions of potential non-compliance.

The Department identified 8 appropriations involving statutory conditions for payment, comprising:

1 special appropriation:

- Financial Management and Accountability Act 1997 s.28(2), Administered

7 special accounts:

- Building Australia Fund Water Portfolio Special Account- Environmental Water Holdings Special Account- Natural Heritage Trust of Australia Account- Ozone Protection and Synthetic Greenhouse Gas Account- Sea Installations Account- Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage

and the Arts Special Account- Water Efficiency Labelling and Standards Account

As at 30 June 2012 this work had been completed in respect of all appropriations with statutory conditions for payment.

The work conducted has identified no issues of non-compliance with Section 83.

Note 29B. Special Accounts ('Recoverable GST exclusive')

Environmental Water Holdings Special Account1

Natural Heritage Trust of Australia Account2

Ozone Protection and SGG Account3 WELS Account4

2012 2011 2012 2011 2012 2011 2012 2011$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance brought forward from previous period 23,499 5,027 391,885 392,138 20,120 19,266 4,609 5,056Increases:

Appropriation credited to special account - - - - - - - 262Amounts credited under section 6(2) of the NHT Act 1997 - - 18,615 17,643 - - - -Amounts credited under section 23 of the NHT Act 1997 - - 172,763 195,735 - - - -Costs recovered 21,000 23,976 - - 10,345 1,609 2,494 1,292Other receipts - - 824 1,484 1,369 1,269 - -

Total increases 21,000 23,976 192,202 214,862 11,714 2,878 2,494 1,554Available for payments 44,499 29,003 584,087 607,000 31,834 22,144 7,103 6,610Decreases:

Administered Payments made - suppliers (8,366) (5,504) (47,232) (49,727) (8,553) (2,009) (2,610) (2,001)Payments made - grants - - (150,972) (165,388) - - - -Payments made - asset acquisitions - - - - (297) - - -Payments made - other - - (15) - - (15) - -Total administered decreases (8,366) (5,504) (198,219) (215,115) (8,850) (2,024) (2,610) (2,001)

Total decreases (8,366) (5,504) (198,219) (215,115) (8,850) (2,024) (2,610) (2,001)Total balance carried to the next period 36,133 23,499 385,868 391,885 22,984 20,120 4,493 4,609

Note 29B (Cont'd). Special Accounts ('Recoverable GST exclusive')

Art Rental Special Account5

Cultural Ministers' Council Special Account6

National Collections Special Account7

National Portrait Gallery Special Account8

2012 2011 2012 2011 2012 2011 2012 2011$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance brought forward from previous period - 1,713 - 645 - 366 - 5,773Increases:

Costs recovered - 2,216 - - - - - 42Other receipts - - - - - 14 - 24

Total increases - 2,216 - - - 14 - 66Available for payments - 3,929 - 645 - 380 - 5,839Decreases:

Departmental Payments made - employees - (756) - (90) - - - (14)Payments made - suppliers - (730) - (355) - (104) - (129)Payments made - grants - - - (40) - - - -Payments made - asset acquisitions - (564) - - - - - (67)Restructuring * - (1,879) - (160) - (276) - (5,629)Total departmental decreases - (3,929) - (645) - (380) - (5,839)

Total decreases - (3,929) - (645) - (380) - (5,839)Total balance carried to the next period - - - - - - - -

*As a consequence of the Administrative Arrangements Order of 14 September 2010, this special account was transferred to the Department of the Prime Minister and Cabinet.

Note 29B (Cont'd). Special Accounts ('Recoverable GST exclusive')

Return of Indigenous Cultural Property Special

Account9

National Cultural Heritage Account10

Services for Other Entities and Trust Moneys11

2012 2011 2012 2011 2012 2011$'000 $'000 $'000 $'000 $'000 $'000

Balance brought forward from previous period - 1,952 - 36 1,226 1,388Increases:

Costs recovered - - - - 735 531Total increases - - - - 735 531Available for payments - 1,952 - 36 1,961 1,919Decreases:

Departmental Payments made - suppliers - (10) - - - -Payments made - grants - (372) - - - -Restructuring * - (1,570) - - - -Total departmental decreases - (1,952) - - - - Administered Restructuring * - - - (36) - -Total administered decreases - - - (36) - - Special Public Money Payments made - suppliers - - - - (216) (693)Payments made - grants - - - - (265) -Total special public money decreases - - - - (481) (693)

Total decreases - (1,952) - (36) (481) (693)Total balance carried to the next period - - - - 1,480 1,226

*As a consequence of the Administrative Arrangements Order of 14 September 2010, this special account was transferred to the Department of the Prime Minister and Cabinet.

1. Appropriation: Financial Management and Accountability Act 1997 section 21Establishing Instrument: Water Act 2007; section 111Purpose: Amounts standing to the credit of the account may be debited for: (a) the payment or discharge of the costs, expenses and other obligations incurred by the Commonwealth Water Holder in the performance of the functions of the Commonwealth Environmental Water Holder; andb) meeting the expenses of administering the Account.This account is non-interest bearing.

2. Appropriation: Financial Management and Accountability Act 1997 section 21Establishing Instrument: Natural Heritage Trust of Australia Act 1997; section 4Purpose: The purposes of the reserves are as follows: (a) the National Vegetation initiative; (b) the Murray-Darling 2001 Project; (c ) the National Land and Water Resources Audit; (d) the National Reserve System; (e) the Coasts and Clean Seas Initiative;(f) environmental protection (as defined by section 15 of the Act);(g) supporting sustainable agriculture (as defined by section 16 of the Act); (h) natural resources management (as defined by section 17 of the Act); (i) a purpose incidental or ancillary to any of the above purposes;(j) the making of grants of financial assistance for any of the above purposes; and (k) an accounting transfer purpose (as defined by section 18 of the Act).This account earns interest at the rate of interest earned by the Commonwealth as at the end of the financial year on deposits held with the Reserve Bank of Australia.

3. Appropriation: Financial Management and Accountability Act 1997 section 21Establishing Instrument: Ozone Protection and Synthetic Greenhouse Gas Management Act 1989Purpose: The following are the purposes of the account: (a) paying or reimbursing the Commonwealth's costs associated with the administration of the Act and the regulations; (b) paying or reimbursing the Commonwealth's costs associated with furthering the following programs (including providing information about those programs): (i) ODS phase out programs; (ii) emission minimisation programs for ODSs and SGGs(c) paying or reimbursing the Commonwealth’s costs associated with the management of the National Halon Bank; (ca) paying or reimbursing the Commonwealth’s costs associated with research relating to: (i) substances that deplete ozone in the atmosphere; or (ii) synthetic greenhouse gases; and(d) refunding any amounts credited to the Account in error.

4. Appropriation: Financial Management and Accountability Act 1997 section 21Establishing Instrument: Water Efficiency Labelling and Standards Act 2005; section 64Purpose: The purpose of the account is to make payments: (a) to further the objects of the Water Efficiency Labelling and Standards Act 2005 (as set out in section 3 of the Act); and (b) otherwise in connection with the performance of the Regulator's functions under the Act, the regulations or a corresponding State-Territory law.This account is non-interest bearing.

5. Appropriation: Financial Management and Accountability Act 1997 section 20Establishing Instrument: Financial Management and Accountability Determination 2006/18 – Art Rental Special Account Establishment 2006Purpose: Amounts may be debited from the special account for:(a) acquire, de-accession, lease, promote, develop, exhibit, lend, conserve and undertake any other activities in relation to managing an art rental collection for the Commonwealth; (b) activities that are incidental to the purpose mentioned in paragraph (a); and (c) the repayment of amounts where an Act or other law requires or permits the repayment of an amount received.This account is non-interest bearing.

6. Appropriation: Financial Management and Accountability Act 1997 section 20Establishing Instrument: Financial Management and Accountability Determination 2005/43 – Cultural Ministers’ Council Special Account Establishment 2005Purpose: Amounts may be debited from the special account for: (a) conducting activities of the working parties initiated by the Cultural Minister's council; (b) activities that are incidental to the purpose mentioned in paragraph (a); and (c) the repayment of amounts where an Act or other law requires or permits the repayment of an amount received.This account is non-interest bearing.

7. Appropriation: Financial Management and Accountability Act 1997 section 20Establishing Instrument: Financial Management and Accountability Determination 2005/44 – National Collections Special Account Establishment 2005Purpose: Amounts may be debited from the special account for: (a) conducting projects, programmes and strategies approved by the responsible agency, associated with future directions, needs and priorities of the collection sector; (b) activities that are incidental to the purpose mentioned in paragraph (a); and(c) the repayment of amounts where an Act or other law requires or permits the repayment of an amount received.This account is non-interest bearing.

8. Appropriation: Financial Management and Accountability Act 1997 section 20Establishing Instrument: Financial Management and Accountability Determination 2005/42 – National Portrait Gallery Special Account Establishment 2005Purpose: Amounts may be debited from the special account for: (a) acquisition of works of art for the National Portrait Gallery; (b) organising National Portrait Gallery activities and mounting exhibitions in accordance with the Gallery's programme; (c) assisting with National Portrait Gallery Circle of Friends events;(d) activities that are incidental to the purpose mentioned in paragraphs (a), (b) or (c); and (e) the repayment of amounts where an Act or other law requires or permits the repayment of an amount received.This account is a non-interest bearing except for the money held in the bank account for receiving donations. Interest on this bank account is earned at the rate of interest earned by the Commonwealth as at the beginning of the financial year on deposits held with the Reserve Bank of Australia.

9. Appropriation: Financial Management and Accountability Act 1997 section 20Establishing Instrument: Financial Management and Accountability Determination 2005/45 – Return of Indigenous Cultural Property Special Account Establishment 2005Purpose: Amounts may be debited from the special account for: (a) developing and conduction projects, programmes and strategies associated with the repatriation of indigenous cultural material, on behalf of the Cultural Ministers' Council; (b) activities that are incidental to the purpose mentioned in paragraph (a); and(c) the repayment of amounts where an Act or other law requires or permits the repayment of an amount received.This account is non-interest bearing.

10. Appropriation: Financial Management and Accountability Act 1997 section 21Establishing Instrument: Protection of Movable Cultural Heritage Act 1986; section 25Purpose: Amounts standing to the credit of the National Cultural Heritage Account may be expended for the purpose of facilitating the acquisition of the Australian protected objects for display or safe-keeping.This account is non-interest bearing.

11. Appropriation: Financial Management and Accountability Act 1997 section 20Establishing Instrument: Financial Management and Accountability Determination 2010/02 – Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage and the Arts Special Account Establishment 2010Purpose: The following are the purposes of the account:a) amounts to be held on trust or otherwise for the benefit of a person other than the Commonwealth;b) amounts received in the course of the performance of functions that relate to purposes of the Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage and the Arts Special Account; andc) amounts received from any person for the purposes of the Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage and the Arts Special Account.This account is non-interest bearing.

The Department had a Building Australia Fund Water Portfolio Special Account. This account was established under section 21 of the Financial Management and Accountability Act 1997 (FMA Act). For the year ended 30 June 2012 the account had a nil balance and there were no transactions debited or credited to it during the current or prior reporting period. The purpose of the Building Australia Fund Water Portfolio Special Account was to make payments in relation to the creation or development of water infrastructure, so long as the payments were specified under subsection 84(2) of the Nation-building Funds Act 2008.

The Department had a Sea Installations Account. This account was established under section 21 of the Financial Management and Accountability Act 1997 (FMA Act). For the year ended 30 June 2012 the account had a nil balance and there were no transactions debited or credited to it during the current or prior reporting period. The purpose of the Sea Installations Account was to receipt amounts equal to money paid as a security under section 37 of the Sea Installations Act 1987 by way of a cash deposit.

Note 30: Compensation and Debt Relief 2012 2011 $ $Compensation and Debt Relief - Departmental No ‘Act of Grace payments' were expensed during the reporting period (2011: No expenses). - -

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2011: No waivers). - -

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2011: No payments). - - No ex-gratia payments were provided for during the reporting period (2011: No payments). - -

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2011: No payments). - -

Compensation and Debt Relief - Administered No ‘Act of Grace payments' were expensed during the reporting period (2011: No expenses). - -


No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2011: No payments). - -

No ex-gratia payments were provided for during the reporting period (2011: No payments). - -



The Department uses an Activity Based Costing System to determine the attribution of its shared items. The basis of attribution in the table below is consistent with the basis used for the Budget.

Note 31A. Net Cost of Outcome Delivery Outcome 11 Outcome 21 Outcome 31 Outcome 41

2012 2011 2012 2011 2012 2011 2012 2011 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Departmental

Expenses 143,791 196,169 51,149 53,331 246,005 153,807 136,456 80,550Own-source income 31,189 38,793 12,930 12,300 29,107 10,039 5,494 5,970

Administered Expenses 316,024 296,085 89,692 45,824 12 11 469,958 524,118Own-source income 877 7,338 12,062 5,060 - - 64,794 19,691

Net cost/(contribution) of outcome delivery 427,749 446,123 115,849 81,795 216,910 143,779 536,126 579,007

Outcome 51 Payment to CAC Act Total bodies2

2012 2011 2012 2011 2012 2011 $'000 $'000 $'000 $'000 $'000 $'000Departmental

Expenses 108,919 55,891 686,320 539,748Own-source income 12,553 9,297 91,273 76,399

Administered Expenses 12,612 151,304 - 262,561 888,298 1,279,903Own-source income 560 2,351 78,293 34,440

Net cost/(contribution) of outcome delivery 108,418 195,547 - 262,561 1,405,052 1,708,812

1. Outcomes 1, 2, 3, 4 and 5 are described in Note 1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome. Refer to Outcome 1

Resourcing Table, Outcome 2 Resourcing Table, Outcome 3 Resourcing Table, Outcome 4 Resourcing Table and Outcome 5 Resourcing Table of this Annual Report.

2. Payments to CAC Act bodies are not related to the outcomes of the Department.

Note 31B. Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome

Outcome 11 Outcome 21 Outcome 31 Outcome 41

2012 2011 2012 2011 2012 2011 2012 2011 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Expenses

Employees 64,002 94,631 28,284 26,140 47,410 44,138 56,012 48,112Suppliers 33,527 47,285 20,668 24,573 93,470 62,537 76,413 28,319Grants 2,130 3,079 446 551 723 766 844 1,457Transfer funding 41,485 46,444 - - - - - -Depreciation and amortisation 2,260 4,509 1,581 1,777 32,080 29,591 2,746 2,164Finance costs 168 132 93 172 15,889 16,726 240 295Write-down and impairment of assets 130 81 68 109 4 46 183 186Other 89 8 9 9 56,429 3 18 17

Total 143,791 196,169 51,149 53,331 246,005 153,807 136,456 80,550Income

Sale of goods and rendering of services 30,569 35,406 12,382 11,285 26,752 7,712 4,756 3,566Other own-source revenue 466 1,648 315 406 2,263 1,760 523 1,653Sale of assets 2 44 1 11 92 91 3 19Reversals of previous asset write-downs / impairments 4 147 3 35 - - 14 63Other gains 148 1,548 229 563 - 476 198 669Revenue from Government 109,244 149,953 36,963 36,663 103,075 102,652 128,814 70,575

Total 140,433 188,746 49,893 48,963 132,182 112,691 134,308 76,545Assets

Cash and cash equivalents 50 638 33 - 3,110 2,306 - -Trade and other receivables 35,041 16,657 7,288 2,207 4,231 19,260 19,638 15,146Other financial assets 213 1,175 2,619 2,534 340 690 666 229Land and buildings 6,996 7,736 58 175 255,538 261,179 - -Property, plant and equipment 16,819 17,611 101 185 102,617 106,562 - -Intangibles 15,384 12,940 618 1,100 226 72 640 490Inventories - - - 1 7,754 6,258 - -Other non-financial assets 2,471 1,081 - - 3,242 3,088 - -

Total 76,974 57,838 10,717 6,202 377,058 399,415 20,944 15,865Liabilities

Suppliers 7,043 9,225 1,537 1,635 3,126 4,551 8,113 1,631Grants 256 434 - 20 - - - -Other payables 18,203 18,247 716 763 2,386 5,109 1,138 1,095Leases 5,052 6,777 - - - - - -Employee provisions 33,374 22,536 5,759 6,915 10,737 9,284 9,200 8,006Other provisions 3,174 2,405 - - 421,157 307,914 - -

Total 67,102 59,624 8,012 9,333 437,406 326,858 18,451 10,732

Note 31B (Cont'd). Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome

Outcome 51 Not attributed2 Total 2012 2011 2012 2011 2012 2011 $'000 $'000 $'000 $'000 $'000 $'000Expenses

Employees 66,602 34,939 262,310 247,960Suppliers 34,078 16,373 258,156 179,087Grants 3,771 1,264 7,914 7,117Transfer funding - - 41,485 46,444Depreciation and amortisation 3,985 2,895 42,652 40,936Finance costs 264 115 16,654 17,440Write-down and impairment of assets 208 277 593 699Other 11 28 56,556 65

Total 108,919 55,891 686,320 539,748Income

Sale of goods and rendering of services 11,678 5,393 86,137 63,362Other own-source revenue 644 3,114 4,211 8,581Sale of assets 3 14 101 179Reversals of previous asset write-downs / impairments 9 33 30 278Other gains 219 743 794 3,999Revenue from Government 88,155 45,133 466,251 404,976

Total 100,708 54,430 557,524 481,375Assets

Cash and cash equivalents - - 2,275 2,826 5,468 5,770Trade and other receivables 11,898 27,249 - 212 78,096 80,731Other financial assets 4 181 - - 3,842 4,809Land and buildings 6,792 6,155 - - 269,384 275,245Property, plant and equipment 1,081 873 - - 120,618 125,231Intangibles 2,608 1,347 - - 19,476 15,949Inventories - - - - 7,754 6,259Other non-financial assets 8 - - - 5,721 4,169

Total 22,391 35,805 2,275 3,038 510,359 518,163Liabilities

Suppliers 1,322 1,628 440 356 21,581 19,026Grants 667 - - - 923 454Other payables 2,692 2,725 - - 25,135 27,939Leases - - - - 5,052 6,777Employee provisions 13,041 11,666 - - 72,111 58,407Other provisions 3,332 2,650 - - 427,663 312,969

Total 21,054 18,669 440 356 552,465 425,572

1. Outcomes 1, 2, 3, 4 and 5 are described in Note 1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome. Refer to Outcome 1

Resourcing Table, Outcome 2 Resourcing Table, Outcome 3 Resourcing Table, Outcome 4 Resourcing Table and Outcome 5 Resourcing Table of this Annual Report.

2. Assets and liabilities that could not be reliably attributed to outcomes.

Note 31C. Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcomes

Outcome 11 Outcome 21 Outcome 31 Outcome 41

2012 2011 2012 2011 2012 2011 2012 2011 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Expenses

Suppliers 54,444 51,520 10,452 5,463 - - 19,688 38,966Subsidies - - 11,025 9,713 - - - -Grants 261,139 244,565 68,215 30,648 - - 376,008 301,174Depreciation - - - - 12 11 - -Write-down and impairment of assets 402 - - - - - 74,262 183,978CAC Act body payment item - - - - - - - -Other 39 - - - - - - -

Total 316,024 296,085 89,692 45,824 12 11 469,958 524,118Income

Other taxation revenue - - 1,369 1,210 - - - -Sales of goods and services - 5 839 719 - - - -Fees and fines 3 - 9,673 909 - - 2,422 780Interest - - - - - - 894 1,074Grant repayments 808 6,928 181 2,200 - - 6,386 168Reversals of previous asset write-downs & impairments 1 56 - 22 - - 3,676 -Other gains 65 349 - - - - 51,416 17,669

Total 877 7,338 12,062 5,060 - - 64,794 19,691Assets

Cash and cash equivalents - - - - - - - 20Trade and other receivables 7,837 5,889 279 1,196 - - 17,259 11,708Other investments 570,761 583,789 - - - - - -Land and buildings - - - - - - 1,467 1,467Property, plant and equipment - - - - 1,060 1,059 490,987 423,045Intangibles - - 713 293 - - 1,941,915 1,395,570Inventories - - 11,896 12,104 - - - -

Total 578,598 589,678 12,888 13,593 1,060 1,059 2,451,628 1,831,810Liabilities

Suppliers 2,908 1,836 1,957 2,350 - - 3,850 989Subsidies - - - 3,883 - - - -Grants 11,349 20,313 - 5,176 - - 20,940 17,894

Total 14,257 22,149 1,957 11,409 - - 24,790 18,883

Note 31C (Cont'd). Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcomes

Outcome 51 Payment to CAC Actbodies3 Not attributed2 Total

2012 2011 2012 2011 2012 2011 2012 2011 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Expenses

Suppliers - 2,086 - - 84,584 98,035Subsidies - - - - 11,025 9,713Grants 12,612 147,595 - - 717,974 723,982Depreciation - 1,138 - - 12 1,149Write-down and impairment of assets - 85 - - 74,664 184,063CAC Act body payment item - - - 262,561 - 262,561Other - 400 - - 39 400

Total 12,612 151,304 - 262,561 888,298 1,279,903Income

Other taxation revenue - - 1,369 1,210Sales of goods and services - - 839 724Fees and fines 152 149 12,250 1,838Interest - - 894 1,074Grant repayments 294 2,098 7,669 11,394Reversals of previous asset write-downs & impairments - 100 3,677 178Other gains 114 4 51,595 18,022

Total 560 2,351 78,293 34,440Assets

Cash and cash equivalents - - - - - 20Trade and other receivables 748 160 - - 26,123 18,953Other investments - - - - 570,761 583,789Land and buildings - - - - 1,467 1,467Property, plant and equipment - - - - 492,047 424,104Intangibles - - - - 1,942,628 1,395,863Inventories - - - - 11,896 12,104

Total 748 160 - - 3,044,922 2,436,300Liabilities

Suppliers - - - - 8,715 5,175Subsidies - - - - - 3,883Grants 1,045 2,470 - - 33,334 45,853

Total 1,045 2,470 - - 42,049 54,911

1. Outcomes 1, 2, 3, 4 and 5 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome.

2. Assets and liabilities that could not be reliably attributed to outcomes.

3. Payments to CAC Act bodies are not related to the outcomes of the entity.

Note 32: Cost Recovery 2012 2011 $'000 $'000 Note 32A. Receipts Subject to Cost Recovery Policy Other cost recovery arrangements

Assessment and grant of permits Fuel Quality Standards Act 2000 288 346Sea Dumping Permit Application Fees 200 269Australian Bird and Bat Banding Scheme 27 27Hazardous Waste Permits 17 12

Total receipts subject to cost recovery policy 532 654

Note 32B. Administered Receipts Subject to Cost Recovery Policy Significant cost recovery arrangements

Ozone Protection and Synthetic Greenhouse Gas Management Program 11,714 2,764 Other cost recovery arrangements

Assessment and grant of permits Water Efficiency Labelling and Standards Scheme 2,375 769Wildlife Trade Permits 96 91

Total administered receipts subject to Cost Recovery Policy 14,185 3,624

Note 33: Net Cash Appropriation Arrangements 2012 2011 $'000 $'000

Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 (123,027) 71,259Plus: depreciation/amortisation expenses previously funded through revenue appropriation 42,652 40,936Total comprehensive income (loss) - as per the Statement of Comprehensive Income (165,679) 30,323

1. From 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.

Natural Heritage Trust of Australia

Financial Statementsfor the period ended 30 June 2012

Natural Heritage Trust of AustraliaSTATEMENT BY THE SECRETARY AND CHIEF FINANCE OFFICER

Subsection 43(3) of the Natural Heritage Trust of Australia Act 1997 requires that the financial statements of the Natural Heritage Trust of Australia Account comply with written guidelines issued by the Minister for Finance.

In our opinion, the attached financial statements for the year ended 30 June 2012 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

Signed................................ Signed................................

Dr Paul GrimesSecretary

30 August 2012

Lily ViertmannChief Finance Officer

30 August 2012

Statement of Comprehensive Income forNatural Heritage Trust of Australiafor the period ended 30 June 2012 2012 2011 Notes $'000 $'000EXPENSES Supplier 3A 49,358 47,863Grants 3B 141,665 165,458Write-down and impairment of assets 3C 197 -Other expenses 3D 29 -Total expenses 191,249 213,321 LESS: OWN-SOURCE INCOME Own-source revenue Interest 4A 13,505 18,615Other revenue 4B 341 2,206Total own-source revenue 13,846 20,821 Gains Other gains 4C 65 65Total gains 65 65Total own-source income 13,911 20,886 Net cost of services 177,338 192,435 Revenue from Government 4D 172,763 195,735Surplus (Deficit) attributable to the Australian Government (4,575) 3,300 Total comprehensive income (loss) attributable to the Australian Government (4,575) 3,300


Balance Sheet forNatural Heritage Trust of Australiaas at 30 June 2012

2012 2011 Notes $'000 $'000ASSETS Financial Assets Cash and cash equivalents 5A - -Trade and other receivables 5B 402,093 414,201Total financial assets 402,093 414,201 Total assets 402,093 414,201 LIABILITIES Payables Suppliers 6A 2,736 476Grants 6B 2,208 11,394Other payables 6C 2,424 3,031Total payables 7,368 14,901 Total liabilities 7,368 14,901 Net assets 394,725 399,300 EQUITY Retained surplus 394,725 399,300Total equity 394,725 399,300


Statement of Changes In Equity forNatural Heritage Trust of Australiafor the period ended 30 June 2012

Retained earnings Total equity 2012 2011 2012 2011 $'000 $'000 $'000 $'000Opening balance Balance carried forward from previous period 399,300 396,000 399,300 396,000 Comprehensive income Surplus (Deficit) for the period (4,575) 3,300 (4,575) 3,300Total comprehensive income (4,575) 3,300 (4,575) 3,300Closing balance as at 30 June 394,725 399,300 394,725 399,300Closing balance attributable to the Australian Government 394,725 399,300 394,725 399,300


Cash Flow Statement forNatural Heritage Trust of Australiafor the period ended 30 June 2012

2012 2011 Notes $'000 $'000OPERATING ACTIVITIES Cash received Appropriations 180,973 197,471Interest 18,615 17,643Net GST received 20,064 19,835Other 2,132 1,517Total cash received 221,784 236,466 Cash used Section 31 receipts transferred to OPA 2,192 1,554Suppliers 53,788 56,820Grants 165,789 178,162Other 15 -Total cash used 221,784 236,536 Net cash from (used by) operating activities 7 - (70) Net increase (decrease) in cash held - (70)Cash and cash equivalents at the beginning of the reporting period - 70Cash and cash equivalents at the end of the reporting period 5A - -


Schedule of Commitments forNatural Heritage Trust of Australiaas at 30 June 2012

2012 2011 $'000 $'000BY TYPE Commitments receivable

Net GST recoverable on commitments (9,773) (15,558)Total commitments receivable (9,773) (15,558) Commitments payable

Other commitments Project commitments1 105,580 176,011Other2 5,108 4,510Total other commitments 110,688 180,521

Total commitments payable 110,688 180,521Net commitments by type 100,915 164,963 BY MATURITY Commitments receivable

Other commitments receivable One year or less (9,643) (9,694)From one to five years (130) (5,864)Total other commitments receivable (9,773) (15,558)


Project commitments One year or less 104,146 108,733From one to five years 1,434 67,278Total project commitments 105,580 176,011

Other commitments One year or less 5,108 2,929From one to five years - 1,581Total other commitments 5,108 4,510

Total commitments payable 110,688 180,521Net commitments by maturity 100,915 164,963

Note: Commitments are GST inclusive where relevant.

1. Project commitments relate to grant amounts payable under agreements in respect of which the grantee has yet to complete the milestone required under the agreement.



Table of Contents - Notes



Note 3: Expenses

Note 4: Income

Note 5: Financial Assets

Note 6: Payables

Note 7: Cash Flow Reconciliation









1.1 Objectives of the Natural Heritage Trust of Australia AccountThe Natural Heritage Trust of Australia Account (the Trust, NHT) was established by the Natural Heritage Trust of Australia Act 1997 (NHT Act) to conserve, repair and replenish Australia’s natural capital infrastructure. The Trust’s objectives are:

Biodiversity Conservation – through protecting and restoring Australia’s terrestrial, freshwater, estuarine and marine ecosystems and habitat for native plants and animals

Sustainable Use of Natural Resources – through using and managing Australia’s land, water and marine resources in ways that maintain and improve the productivity and profitability of resource-based industries

Community Capacity-Building and Institutional Change – supporting individuals, landholders, industry and communities with skills, knowledge, information and institutional frameworks to promote biodiversity conservation and sustainable resource use and management.

The Trust contributes to the Government’s Caring for our Country program. Caring for our Country is an Australian Government initiative that seeks to achieve an environment that is healthy, better protected, well-managed and resilient, and provides essential ecosystem services in a changing climate.

Caring for our Country commenced on 1 July 2008. It integrates delivery of the Australian Government’s previous natural resource management programs, including the Natural Heritage Trust, the National Landcare Program (appropriated to the Department of Agriculture, Fisheries and Forestry), the Environmental Stewardship Program and the Working on Country Indigenous land and sea ranger program. It also incorporates the delivery of a range of other natural resource management funding elements including Community Coastcare, World Heritage, regional investments and relevant 2007 election commitments.

Caring for our Country aims to achieve its strategic goal by focusing on six national priority areas:

National Reserve System

Biodiversity and Natural Icons

Coastal Environments and Critical Aquatic Habitats

Sustainable Farm Practices

Natural Resource Management in Northern and Remote Australia

Community Skills, Knowledge and Engagement

The continued existence of the Trust in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Trust’s administration and programs.

1.2 Basis of Preparation of the Financial StatementsThe financial statements are general purpose financial statements and are required by clause 1(b) of section 43 of the Natural Heritage Trust of Australia Act 1997.

The financial statements have been prepared in accordance with:

Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; 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 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 FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the Trust or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

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 EstimatesIn the process of applying the accounting policies listed in this note, the Trust has not made any judgements that could have a significant impact on the amounts recorded in the financial statements.

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.

The following amending standards that were issued prior to the sign-off date were applicable to the current reporting period and did not have a financial impact on the Trust. They are disclosed to provide users with information about the main changes and why there is no impact:

AASB 2011-1: Amendments to Australian Accounting Standards – Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project (AASB 1, AASB 5, AASB 101, AASB 107, AASB 108, AASB 121, AASB 128, AASB 132 & AASB 134 and Interpretations 2, 112 & 113) (issued May 2011)

This Standard makes amendments to a range of Australian Accounting Standards and Interpretations for the purpose of closer alignment to IFRSs and harmonisation between Australian and New Zealand Standards. The subjects of these amendments to the Standard which may affect the presentation of the financial statements include:

Australian Accounting Standard or Interpretation Subject of amendment


The main amendments are:Deletion of disclosure requirements relating to capital and expenditure commitments. However, the FMOs still require disclosure of commitments.Deletion of a number of Australian-specific guidance.Relocation to AASB 1054 Australian Additional Disclosures of a number of Australian-specific disclosure requirements.

AASB 107 Statement of Cash Flows

Relocation to AASB 1054 of the disclosure requirement relating to reconciliation of net operating cash flow to profit or loss.

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 Trust.

Future Australian Accounting Standard Requirements

The following new and amending standards that were issued by the Australian Accounting Standards Board prior to the sign-off date are not expected to have a financial impact on the Trust for future reporting periods. They are disclosed to provide users with information about the main changes and why there is no impact:

AASB 9 Financial Instrument (issued December 2009)

This Standard includes requirements for the classification and measurement of financial assets resulting from the first part of Phase 1 of the IASB's project to replace AASB 139 Financial Instruments: Recognition and Measurement. These requirements improve and simplify the approach for classification and measurement of financial assets compared with the requirements of AASB 139. The main changes are: financial assets are classified based on (a) the objective of the entity's business model for managing the financial assets; and (b) the characteristics of the contractual cash flows. This replaces the categories of financial assets in AASB 139, each of which had its own classification criteria. AASB 9 allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Financial assets can be designated and measured at fair value through profit or loss at initial recognition, if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases

AASB 13: Fair Value Measurement (issued September 2011)

This Standard has been released as a result of the International Accounting Standards Board (IASB)’s project to ensure consistency of fair value measurement and disclosure within financial statements. AASB 13 defines fair value, sets out a framework for measuring fair value, and requires disclosures about fair value measurements. The definition of fair value focuses on assets and liabilities because they are a primary subject of accounting measurement.

This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations to ensure consistency with AASB 13 Fair Value Measurement. AASB 13 establishes a new definition of "fair value" and general requirements when measuring the fair value of assets and liabilities.

AASB 2011-9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income (AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049) (issued September 2011)

The main change resulting from the amendments is a requirement to group items presented in other comprehensive income (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). These amendments do not remove the option to present profit or loss and other comprehensive income in two statements. The subjects of these amendments to the Standard which may affect the presentation of the financial statements include:

Australian Accounting Standard Subject of amendment


A single statement of profit or loss and other comprehensive income may be presented, with profit or loss and other comprehensive income presented in two sections.The sections shall be presented together, with the profit or loss section presented first followed directly by the other comprehensive income section.The profit or loss section may be presented in a separate statement of profit or loss. If so, the separate statement of profit or loss shall immediately precede the statement presenting comprehensive income, which shall begin with profit or loss.

AASB 1053: Application of Tiers of Australian Accounting Standards (issued June 2010)

This Standard establishes a differential financial reporting framework consisting of two Tiers of reporting requirements for preparing general purpose financial statements: (a) Tier 1: Australian Accounting Standards; and (b) Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements. Tier 2 comprises the recognition, measurement and presentation requirements of Tier 1 and substantially reduced disclosures corresponding to those requirements.

The following entities apply Tier 1 requirements in preparing general purpose financial statements: for-profit entities in the private sector that have public accountability (as defined in this Standard) and the Australian Government and State, Territory and Local Governments.

The following entities apply either Tier 2 or Tier 1 requirements in preparing general purpose financial statements: for-profit private sector entities that do not have public accountability; all not-for-profit private sector entities; and public sector entities other than the Australian Government and State, Territory and Local Governments.

Whilst Tier 2 requirements would be available to all not-for-profit private sector entities and most public sector entities, regulators might exercise a power to require the application of Tier 1 requirements by the entities they regulate. In the case of Commonwealth agencies and authorities, the Department of Finance and Deregulation is the regulator and could provide authorisation through the FMOs.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting period are not expected to have a future financial impact on the Trust.

1.5 Revenue

Interest Revenue

Under subsection 6(2) of the Natural Heritage Trust of Australia Act 1997, the Trust is entitled to receive interest income equal to the fixed-income percentage of the uninvested amount standing to the credit of the Trust’s Special Account as at the end of the financial year. For 2011-12, the fixed-income percentage is the percentage equal to the rate of interest earned by the Commonwealth as at the end of the financial year on deposits held with the Reserve Bank of Australia.

The funds held in the Official Public Account constitute ‘uninvested funds’ and as such are subject to the interest income provision. The interest is also applicable to all funds held in the Trust’s bank account excluding unpresented cheques, together with cash on hand and unbanked money.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement (Refer to Note 4A).

Revenue from Government

Under subsection 23 of the Natural Heritage Trust of Australia Act 1997, if another Act appropriates an amount from the Consolidated Revenue Fund for credit to the Trust’s Special Account, the amount is to be credited to the Special Account. In 2012, $172,763,000 (2011: $195,735,000) was credited to the Special Account from administered appropriations received by the Department of Sustainability, Environment, Water, Population and Communities under Appropriation Act (No.1) 2011-2012.

1.6 GainsResources Received Free of Charge

Resources received free of charge are recognised as gains 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.

1.7 Transactions with the Government as OwnerThere were no transactions with the Government as owner during 2011-12 (2010-11: none).

1.8 CashCash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand;

b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value; and

c) cash in special account.

1.9 Financial AssetsThe Trust classifies its financial assets as ‘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.

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 or loss.


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 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 LiabilitiesThe Trust classifies its financial liabilities as ‘other financial liabilities’.

Financial liabilities are recognised and derecognised upon trade date.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.

These 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 that the goods or services have been received (and irrespective of having been invoiced).

1.11 Contingent Liabilities and Contingent AssetsContingent liabilities and contingent assets are not recognised in the balance sheet 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.

1.12 TaxationThe Trust is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

for receivables and payables.


There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Trust.

Note 3: Expenses

2012 2011 $'000 $'000Note 3A: Supplier Goods and services Implementation costs1 39,954 41,286Contractors 6,137 5,084General goods and services 3,267 1,493Total goods and services 49,358 47,863 Goods and services are made up of:

Provision of goods – related entities 149 6Provision of goods – external parties 10 69Rendering of services – related entities 44,718 43,939Rendering of services - external parties 4,481 3,849Total goods and services 49,358 47,863 Total supplier expenses 49,358 47,863

1. Represents funding provided to the Department of Sustainability, Environment, Water, Population and Communities and the Department of Agriculture, Fisheries and Forestry to cover costs associated with implementing the Trust’s activities.

Note 3B: Grants Public sector:


Private sector: Non-profit organisations 66,132 57,399Profit making entities 8,967 18,887Individuals 108 35Overseas - 47Universities 3,602 3,396

Total grants 141,665 165,458

Note 3C: Write-Down and Impairment of Assets Asset write-downs and impairments from:

Impairment on grants and other receivables 197 -Total write-down and impairment of assets 197 -

Note 3D: Other Expenses Sponsorships 29 -Total other expenses 29 -

Note 4: Income

2012 2011 $'000 $'000OWN-SOURCE REVENUE Note 4A: Interest Deposits 13,505 18,615Total interest 13,505 18,615

Note 4B: Other Revenue Repayments of prior years grants expenditure 341 2,206Total other revenue 341 2,206

GAINS Note 4C: Other Gains Resources received free of charge 65 65Total other gains 65 65

REVENUE FROM GOVERNMENT Note 4D: Revenue from Government Appropriations:

Other - amounts credited to special account 172,763 195,735Total revenue from Government 172,763 195,735

Note 5: Financial Assets 2012 2011 $'000 $'000Note 5A: Cash and Cash Equivalents Cash on hand or on deposit - -Total cash and cash equivalents - -

Note 5B: Trade and Other Receivables Appropriations receivable:

For existing programs 385,868 391,886Total appropriations receivable 385,868 391,886 Other receivables:

GST receivable from the Australian Taxation Office 2,655 2,879Interest 13,505 18,615Grants and other receivables 65 821

Total other receivables 16,225 22,315Total trade and other receivables (gross) 402,093 414,201 Less impairment allowance account

Grants and other receivables 1 - -Total impairment allowance account - -Total trade and other receivables (net) 402,093 414,201 Receivables are expected to be recovered in:

No more than 12 months 402,093 414,201Total trade and other receivables (net) 402,093 414,201 Receivables are aged as follows:


0 to 30 days 6 7More than 90 days 46 733

Total receivables (gross) 402,093 414,201

Credit terms for grants and other receivables were within 30 days (2011: 30 days).

1. Trade and other receivables are assessed for impairment at the end of each reporting period. No indicators of impairment were found for trade and other receivables (2011: None).

Note 6: Payables 2012 2011 $'000 $'000Note 6A: Suppliers Trade creditors and accruals 2,736 476Total supplier payables 2,736 476 Supplier payables expected to be settled within 12 months:

External parties 2,736 476Total 2,736 476Total supplier payables 2,736 476

Settlement was usually made within 30 days.

Note 6B: Grants Public sector:

Australian Government entities (related entities) - 2,157State and Territory Governments 385 6,850

Private sector: Non-profit organisations 1,713 2,361Other 110 -Universities - 26

Total grants 2,208 11,394 Total grants are expected to be settled in:

No more than 12 months 2,208 11,394Total grants 2,208 11,394

Settlement was usually made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility.

Note 6C: Other Payables GST payable to OPA 2,424 3,031Total other payables 2,424 3,031 Total other payables are expected to be settled in:

No more than 12 months 2,424 3,031Total other payables 2,424 3,031

Note 7: Cash Flow Reconciliation 2012 2011 $'000 $'000Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement Cash and cash equivalents as per:

Cash flow statement - -Balance sheet - -


Net cost of services (177,338) (192,435)Add revenue from Government 172,763 195,735


(Increase) / decrease in net receivables 12,108 785Increase / (decrease) in supplier payables 2,260 (1,841)Increase / (decrease) in grants payable (9,186) 8Increase / (decrease) in other payables (607) (2,322)

Net cash from (used by) operating activities - (70)


Quantifiable Contingencies

There are no quantifiable contingencies in either the current or the immediately preceding reporting period, therefore there is no Schedule for such items.

Unquantifiable Contingencies

There are no unquantifiable contingencies in either the current or immediate preceding reporting period.

Significant Remote Contingencies

There are no remote contingencies in either the current or immediate preceding reporting period.


2012 2011 $'000 $'000Financial statement audit services were provided free of charge to the Trust by the Australian National Audit Office (ANAO). Fair value of the services provided

Financial statement audit services 65 65 65 65

No other services were provided by the auditors of the financial statements.


2012 2011 $'000 $'000Note 10A: Categories of Financial Instruments Financial Assets Loans and receivables:

Grants and other receivables 65 821Total 65 821Carrying amount of financial assets 65 821 Financial Liabilities At amortised cost:

Trade creditors and accruals 2,736 476Grant payables 2,208 11,394

Total 4,944 11,870Carrying amount of financial liabilities 4,944 11,870

Note 10B: Net Income and Expense from Financial Assets Loans and receivables

Impairment 197 -Net loss from loans and receivables 197 -Net loss from financial assets 197 -

The Trust did not have any income and expenses from financial liabilities (2011: Nil).

Note 10C: Fair Value of Financial Instruments The fair value of all financial assets and liabilities approximate their carrying amounts.

Note 10D: Credit Risk

The Trust was exposed to minimal credit risk as loans and receivables were cash, grants and other receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of grants and other receivables (2012: $65,000 and 2011: $821,000).The Trust had assessed the risk of the default on payment and had allocated $0 in 2012 (2011: $0) to an impairment allowance account.

The Trust managed its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The Trust held no collateral to mitigate against credit risk. In addition, the Trust had policies and procedures that guided employees on debt recovery techniques that were to be applied.

The following table illustrates the Trust’s gross exposure to credit risk, excluding any collateral or credit enhancements. 2012 2011 $'000 $'000Financial assets Grants and other receivables 65 821Total 65 821

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 2012 2011 2012 2011 $'000 $'000 $'000 $'000Grants and other receivables 13 81 52 740Total 13 81 52 740 Ageing of financial assets that were past due but not impaired for 2012 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000Grants and other receivables 6 - - 46 52Total 6 - - 46 52 Ageing of financial assets that were past due but not impaired for 2011 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000Grants and other receivables 7 - - 733 740Total 7 - - 733 740

Note 10E: Liquidity Risk

The Trust’s financial liabilities were trade creditors, accruals and grants payables. The exposure to liquidity risk was based on the notion that the Trust will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the Trust is appropriated funding from the Australian Government and the Trust managed its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Trust had policies in place to ensure timely payments were made when due and has no past experience of default. Maturities for non-derivative financial liabilities 2012 Within 1 year Total $'000 $'000Trade creditors and accruals 2,736 2,736Grant payables 2,208 2,208Total 4,944 4,944 Maturities for non-derivative financial liabilities 2011 Within 1 year Total $'000 $'000Trade creditors and accruals 476 476Grant payables 11,394 11,394Total 11,870 11,870

Note 10F: Market Risk

The Trust held basic financial instruments that did not expose the Trust to certain market risks, such as 'Currency risk', 'Interest rate risk' and 'Other price risk'.


2012 2011 $'000 $'000Financial assets Notes Total financial assets as per balance sheet 402,093 414,201Less: non-financial instrument components

Appropriation receivables 5B 385,868 391,886GST receivable from the ATO 5B 2,655 2,879Interest receivable 5B 13,505 18,615

Total non-financial instrument components 402,028 413,380Total financial assets as per financial instruments note 10A 65 821


Note 12A: 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 and Deregulation provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

During 2011-12, the Trust developed a plan to review exposure to risks of not complying with statutory conditions on payments from the Natural Heritage Trust of Australia Special Account. The plan involved determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions and assessing the extent to which existing payment systems and processes satisfy those conditions.

As at 30 June 2012 this work had been completed in respect of the Natural Heritage Trust of Australia Special Account. No issues of non-compliance with Section 83 were identified.

Note 12B: Special Accounts ('Recoverable GST exclusive') NHT Account1

2012 2011$'000 $'000

Balance brought forward from previous period 391,885 392,138Increases:

Amounts credited under section 6(2) of the NHT Act 1997 18,615 17,643Amounts credited under section 23 of the NHT Act 1997 172,763 195,735Other receipts 824 1,484

Total increases 192,202 214,862Available for payments 584,087 607,000Decreases:

Administered Payments made - suppliers (47,232) (49,727)Payments made - grants (150,972) (165,388)Payments made - other (15) -Total administered decreases (198,219) (215,115)

Total decreases (198,219) (215,115)Total balance carried to the next period 385,868 391,885

1. Appropriation: Financial Management and Accountability Act 1997 section 21.

Establishing Instrument: Natural Heritage Trust of Australia Act 1997 section 4.

Purpose: The purposes of the reserves are as follows:(a) the National Vegetation initiative;(b) the Murray-Darling 2001 Project;(c) the National Land and Water Resources Audit;

(d) the National Reserve System;(e) the Coasts and Clean Seas Initiative;(f) environmental protection (as defined by section 15 of the Act);(g) supporting sustainable agriculture (as defined by section 16 of the Act);(h) natural resources management (as defined by section 17 of the Act);(i) a purpose incidental or ancillary to any of the above purposes;(j) the making of grants of financial assistance for any of the above purposes; and(k) an accounting transfer purpose (as defined by section 18 of the Act).


2012 2011 $ $No ‘Act of Grace payments' were expensed during the reporting period (2011: No expenses). - -


No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2011: No payments). - - No ex-gratia payments were provided for during the reporting period (2011: No payments). - -



The Trust's Income, Expenses, Assets and Liabilities are part of the Department of Sustainability, Environment, Water, Population and Communities Outcome 1.

Glossary of terms, abbreviations and acronyms

Term Meaning

Additional estimates A process through which the parliament may appropriate more funds to portfolios if the amounts appropriated at Budget time are insufficient. There can also be supplementary additional estimates.

Administered items/administered appropriations

Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Administered expenses include grants, subsidies and benefits, and may fund the delivery of third party outputs. For example the department administers appropriations for the Australian Government’s Natural Heritage Trust to provide grants. This annual report refers to appropriations for administered items as ‘administered appropriations’.

Administrative Arrangements Orders (AAOs)

Formally allocate executive responsibility among ministers. They set out which matters and legislation are administered by which department or portfolio. AAOs are re-issued or amended to take into account changes in the structure of government.

Appropriations Authorisations by the parliament to spend monies from the Consolidated Revenue Fund. Two appropriation Bills are introduced into parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates.

Basin Plan The Water Act 2007 requires that the Murray–Darling Basin Authority (MDBA) develops and oversees the Basin Plan for the integrated management of Basin water resources. The Basin Plan provides limits on the quantity of water that may be taken from the Basin water resources.

Basin states The Basin states are Queensland, New South Wales, Victoria, South Australia and the Australian Capital Territory. The Murray–Darling Basin Ministerial Council was established under the Murray–Darling Basin Agreement, Schedule 1 to the Water Act 2007. Membership of the Ministerial Council comprises the Commonwealth Water Minister, who also chairs the Ministerial Council, and one minister from each of the Basin states (and one territory). The Murray–Darling Basin Authority manages the water resources of the Murray–Darling Basin in conjunction with the Basin states through a number of programs

Biodiscovery The examination of biological resources (e.g. plants, animals, microorganisms) for characteristics that may have wider application and/or commercial value.

Biodiversity In essence means the variety of life. The term ‘biodiversity’ is a contraction of, and synonymous with, ‘biological diversity’. Biological diversity is defined in Article 2 of the Convention on Biological Diversity to mean ‘the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems’ (a similar definition appears in the glossary to the Ramsar Convention on wetlands).

Bioregion A geographic area characterised by a combination of physical and biological characteristics; for example, terrain, climate and ecological communities. The glossary of terms related to the Convention on Biological Diversity provides the following definition: ‘a territory defined by a combination of biological, social, and geographic criteria, rather than geopolitical considerations; generally, a system of related, interconnected ecosystems’. The term ‘bioregion’ is a contraction of biogeographic region and is usually synonymous with that term. Bioregions are a useful way to analyse patterns of biodiversity. The definition of a particular bioregion depends on the scale at which its characteristic features are measured.

Biotechnology Any technology which introduces organisms or parts of organisms into industrial processes, agriculture or pharmacology or into services such as waste recycling.

Bycatch Accidental or incidental catch taken by fishers (non-target species).

Cetaceans Whales, dolphins and porpoises.

Commonwealth Heritage List

Comprises places that are owned or controlled by the Australian Government and have natural, Indigenous and/or historic heritage values under the EPBC Act. These include places connected to defence, communications, customs and other government activities that also reflect Australia’s development as a nation.

Commonwealth protected area

A marine or terrestrial area protected under Commonwealth legislation, including a World Heritage Area, National Heritage place, Marine Protected Area, Ramsar Wetland, Indigenous Protected Area, and other areas within the National Reserve System.

Controlled substance A licence required to manufacture, import or export methyl bromide, hydrochlorofluorocarbons,

Term Meaning

licence hydrofluorocarbons and perfluorocarbons.

Corporate governance The process by which agencies are directed, controlled and held to account. It is generally understood to encompass authority, accountability, stewardship, leadership, direction and control.

Cryosphere Refers collectively to the portions of the Earth where water is in solid form. It includes snow cover, floating ice, glaciers, ice caps, ice sheets, seasonally frozen ground and perennially frozen ground (permafrost).

Departmental items/departmental appropriations

Assets, liabilities, revenues and expenses that are controlled by agencies in providing their outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services, and most employee expenses, supplier costs and other administrative expenses incurred. This annual report refers to appropriations for departmental items as ‘departmental appropriations’.

Desalination The process of removing excess salt and other minerals from water in order to obtain freshwater suitable for human consumption and other purposes.

Discretionary grants Payments made to particular applicants, either organisations or individuals, at the discretion of the portfolio minister or the paying agency. The definition of discretionary grants does not include service agreements, which are treated as contracts rather than grants; intra-Australian Government agency funding; payments to states and other government agencies (specific purpose payments) and inter-government transfers; payments to overseas aid organisations; government income support programs; emergency payment programs; grants under commercial industry development programs (including to increase research and development, and assist exporters); grant programs specifically for educational institutions and medical research institutions; grants approved by Australian Government bodies outside the general government sector; or payments of a specific sum of money or a fixed percentage of shared funding to an organisation or individual that are made according to a Cabinet decision, a letter from the Prime Minister, or a determination of a ministerial council.

Ecological communities Naturally occurring group of species inhabiting a common environment, interacting with each other especially through food relationships and relatively independent of other groups. Ecological communities may vary in size, and larger ones may contain smaller ones. In the EPBC Act they are defined as assemblages of native species that inhabit particular areas in nature.

Ecologically sustainable The EPBC Act defines ecologically sustainable use of natural resources as ‘use of the natural resources within their capacity to sustain natural processes while maintaining the life-support systems of nature and ensuring that the benefit of the use to the present generation does not diminish the potential to meet the needs and aspirations of future generations’.

Ecosystem A dynamic combination of plant, animal and micro-organism communities and their non-living environment (e.g. soil, water and the climatic regime) interacting as a functional unit. Examples of types of ecosystems include forests, wetlands, grasslands and tundra.

Ecotoxicology Seeks to understand how toxic chemicals (toxicants) affect the structure and function of natural ecological systems (populations, communities and ecosystems). The Environmental Research Institute of the Supervising Scientist ecotoxicology program investigates the risks and impacts of pollutants (toxicants) to the highly valued wetland ecosystems of northern Australia.

Endemic species An animal or plant species whose habitat is restricted to a particular area or space on the globe. This general term is used for a range of creatures including mammal species, reptile species, bird species and insect species. Details on an endemic species may differ depending on what kind of animal or plant is being referenced. Generally, an endemic species is a focus point for helping to protect biodiversity in a given environment.

Enforceable undertaking May be applied under section 486DA of the EPBC Act, where the minister considers that an action contravenes a civil penalty provision of Part 3 of the Act. The minister may accept a written undertaking by a person to pay a specified amount within a specified period to the Commonwealth, or another specified person, to protect and conserve the matter covered by the civil penalty provision.

Environmental impact assessment

An assessment of the possible impact of a proposed action undertaken to enable environment and heritage protection and biodiversity conservation.

Environmental water Water provided for the environment to sustain, and where necessary, restore ecological processes and biodiversity of water dependent ecosystems.

Essential uses licence May be granted under the EPBC Act for the import, export or manufacture of chlorofluorocarbons (CFC), halons, CH3CCl3 (methyl chloroform), CCl4 (carbon tetrachloride) and bromochloromethane

Term Meaning

(BCM) for uses which meet a very limited range of essential use criteria, including laboratory and analytical use. Essential uses licences are subject to quantitative restrictions and reporting requirements.

Expenses Total value of all of the resources consumed in producing goods and services.

Finalised Priority Assessment List (FPAL)

The list of nominated species, ecological communities and key threatening processes that have been approved for assessment by the minister for a particular assessment year (1 October–30 September). Each item included on the FPAL is assessed by the Threatened Species Scientific Committee against a set of criteria, and at the completion of the assessment the Committee provides a ‘listing advice’ to the minister for decision, as well as a ‘conservation advice’ that outlines immediate conservation priorities.

Financial results The results shown in the financial statements of an agency.

Geographic information system (GIS)

An information system for capturing, storing, analysing, managing and presenting data that are spatially referenced (linked to location). GIS applications are tools that allow users to create interactive queries (user created searches), analyse spatial information, edit data, maps and present the results of all these operations.

Gigalitre (GL) One gigalitre is equal to 1000 megalitres and one megalitre is equal to one million litres.

Hypoxic black water High concentrations of organic material can cause the dissolved oxygen levels in the water to drop to very low levels that can result in fish and crustacean deaths. A hypoxic black water event can result from flooding.

Indigenous Protected Area (IPA)

An area of Indigenous-owned land or sea where traditional owners have entered into an agreement with the Australian Government to promote biodiversity and cultural resource conservation.

Invasive species A species occurring beyond its accepted normal distribution and which threatens valued environmental, agricultural, marine or social resources by the damage it causes.

Machinery of government (MOG) changes

Describes a variety of organisational or functional changes affecting the Commonwealth. Some common examples are: changes to the Administrative Arrangements Order following a Prime Ministerial decision to abolish or create a department or to move functions/responsibilities between departments/agencies; creation of a new statutory agency or executive agency, or abolition of such agencies; movement of functions into, or out of, the Australian Public Service.

Marine protected area Parts of the ocean that are managed specifically to protect and maintainmarine biodiversity andcultural heritage. These areas are reservedby law or other effective means to protect part or all of the marine environment (also known as marine reserve or marine park).

Matters of national environmental significance (NES)

The matters of national environmental significance protected under the EPBC Act are: listed threatened species and communities; listed migratory species; Ramsar wetlands of international importance; Commonwealth marine environment; world heritage properties; national heritage places; the Great Barrier Reef Marine Park; nuclear actions.

Megalitres (ML) One megalitre is equal to one million litres.

National Heritage List A written record of the places and their heritage values which the minister is satisfied have one or more National Heritage values.

Operating costs Expenses associated with the day-to-day operation of the department.

Outcomes The intended results, impacts or consequences of actions by the government on the Australian community. They are listed in agencies’ portfolio budget statements and portfolio additional estimates statements.

Ozone depleting substances (ODS)

Substances that deplete the earth’s protective ozone layer. They are widely used in refrigerators, air conditioners, fire extinguishers, dry cleaning, as solvents for cleaning, electronic equipment and as agricultural fumigants. Ozone-depleting substances include chlorofluorocarbons, halon, hydrochlorofluorocarbons and methyl bromide. Countries have agreed to phase out ozone-depleting substances through the Montreal Protocol on Substances that Deplete the Ozone Layer. Some industries that use ozone-depleting substances are replacing those substances with synthetic greenhouse gases.

Persistent organic pollutants

Hazardous and environmentally persistent substances that can be transported between countries by the earth’s oceans and atmosphere. The substances bioaccumulate and have been traced in the fatty tissues of humans and other animals. Persistent organic pollutants include dieldrin, polychlorinated byphenyls, DDT, dioxins and furans. Countries have agreed to control the manufacture and trade of persistent organic pollutants through the Stockholm Convention on Persistent Organic Pollutants.

Portfolio budget statements (PBS)

Detailed information on the resources available and the planned performance of each agency within a portfolio. The PBS includes expenditure and revenue estimates for the current financial year, the budget

Term Meaning

year and the three forward years. The PBS informs Senators, Members and the public of the proposed allocation of resources to government outcomes. The PBS provides an important means by which the Executive Government remains accountable to the Parliament.

Procurement Encompasses the whole process of acquiring property and services. Procurement involves the processes of developing a business case, including risk assessment, identifying and evaluating alternative solutions, approaching the market, assessing tenders or quotes, contract award, delivery of and payment for the property and services and, where relevant, the ongoing management of a contract and consideration of options related to the contract. Procurement also extends to the ultimate disposal of property at the end of its useful life.

Product stewardship Recognises that manufacturers, importers and others who benefit from making and selling a product share some responsibility for the environmental impacts of that product.

Programs Agencies deliver programs which are the government actions that are taken to deliver the stated outcomes. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

Ramsar listing Denotes the inclusion of a wetland area on the List of Wetlands of International Importance – an inventory prescribed by the Convention on Wetlands (more commonly known as the Ramsar Convention, which was signed in Ramsar, Iran, in 1971). As one of the original contracting parties to the Convention, Australia has designated 65 sites for this list.

Revenue The total value of resources earned or received to cover the production of goods and services.

Shipping days 24 hour period during which a ship is under charter to the Australian Antarctic Division.

Special appropriations Moneys appropriated by the parliament in an Act separate to an annual Appropriation Act, where the payment is for a specified amount. For example, the department receives special appropriations under laws that require industry to pay a levy on the import of ozone-depleting substances. Special appropriations are not subject to annual budget control by the parliament, unlike the annual appropriations.

Synthetic greenhouse gases (SGGs)

Greenhouse gases that are either used in industrial applications or emitted as a byproduct of industrial activity. They include hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. Some industries that use ozone-depleting substances are replacing those substances with synthetic greenhouse gases.

Threat abatement plan Threat abatement plans are developed when they are deemed by the minister to be a feasible, efficient and effective way of abating a listed key threatening process, having regard to the advice of the Threatened Species Scientific Committee and other nominated persons or bodies.

Threatened species Listed threatened species (together with listed threatened ecological communities) form one of the eight matters of national environmental significance protected by the EPBC Act. Listed threatened species are categorised under the Act as either ‘extinct’, ‘extinct in the wild’, ‘critically endangered’, ‘endangered’, ‘vulnerable’ or ‘conservation dependent’.

Water buyback Under the Restoring the Balance in the Murray-Darling Basin program, the Australian Government is buying permanent water entitlements from irrigators for the environment. The water allocated to the entitlements will be used to improve the health of the Murray-Darling Basin’s rivers and wetlands.

World Heritage List A list of properties with cultural heritage and/or natural heritage which the World Heritage Committee considers as having outstanding universal value.

Acronym Meaning

AAD Australian Antarctic Division

AAT Administrative Appeals Tribunal

ABRS Australian Biological Resources Study

AELERT Australasian Environmental Law Enforcement and Regulators Network

ANAO Australian National Audit Office

APEC Asia-Pacific Economic Cooperation

AQIS Australian Quarantine and Inspection Service

ARC Australian Refrigeration Council

B5 blends of diesel and biodiesel where the biodiesel component is no greater than five per cent

Acronym Meaning

B20 blends of diesel and biodiesel where the biodiesel component is no greater than twenty per cent

CA controlled action

CCALMR Commission for the Conservation of Antarctic Marine Living Resources

CEWH Commonwealth Environmental Water Holder

CFC chlorofluorocarbon

CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora

CMA Catchment Management Authority

CMP Conservation Management Plan

COAG Council of Australian Governments

CSG coal seam gas

LNG liquefied natural gas

CSIRO Commonwealth Scientific and Research Organisation

DAFF Department of Agriculture, Fisheries and Forestry

DSEWPaC Department of Sustainability, Environment, Water, Population and Communities

EEZ exclusive economic zone

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

EPHC Environment Protection and Heritage Council

ERISS Environmental Research Institute of the Supervising Scientist

FQS Act Fuel Quality Standards Act 2000

GL gigalitre

HBFC hydrobromofluorocarbon

HCFC hydrochlorofluorocarbon

HFC hydrofluorocarbon

IPA Indigenous Protected Area

IWC International Whaling Commission

KPI key performance indicator

MDBA Murray–Darling Basin Authority

MER monitoring, evaluation and reporting

MTBE methyl tertiary butyl ether

NEPM National Environment Protection Measure

NHT National Heritage Trust

NRSMPA National Representative System of Marine Protected Areas

ODP ozone-depleting potential

PAES portfolio additional estimates statements

PBS portfolio budget statements

PFC perfluorocarbon

PSO Act Product Stewardship (Oil) Act 2000

RAC Refrigeration and air conditioning

SCEW Standing Council on Environment and Water

SGG Synthetic greenhouse gas

SSD Supervising Scientist Division

TBA tertiary butyl alcohol

Acronym Meaning

TSSC Threatened Species Scientific Committee

UNEP United Nations Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organisation

WELS Water Efficiency Labelling and Standards

WTO World Trade Organization

List of requirements

Part of Report Description Requirement Page

Letter of transmittal Mandatory 5

Table of contents Mandatory 3

Index Mandatory 548

Glossary Mandatory 533

Contact officer(s) Mandatory 7

Internet home page address and Internet address for report Mandatory 7

Review by Secretary

Review by departmental secretary Mandatory 8

Summary of significant issues and developments Suggested 8–10

Overview of department’s performance and financial results Suggested 8–10, 15

Outlook for following year Suggested CWH only 158–159

Significant issues and developments–portfolio Portfolio departments–suggested

10

Departmental Overview

Role and functions Mandatory 11–12

Organisational structure Mandatory 14

Outcome and program structure Mandatory 11–12

Where outcome and program structures differ from PB Statements/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change

Mandatory n/a

Portfolio structure Portfolio departments-mandatory

14

Report on Performance

Review of performance during the year in relation to programs and contribution to outcomes

Mandatory 18–393

Actual performance in relation to deliverables and KPIs set out in PB Statements/PAES or other portfolio statements

Mandatory 18–393

Where performance targets differ from the PBS/ PAES, details of both former and new targets, and reasons for the change

Mandatory 18–393

Narrative discussion and analysis of performance Mandatory 18–393

Trend information Mandatory 18–393

Significant changes in nature of principal functions/ services Suggested 12

Performance of purchaser/provider arrangements If applicable, suggested

n/a

Factors, events or trends influencing departmental performance Suggested 18–393

Contribution of risk management in achieving objectives Suggested 303–305

Social inclusion outcomes If applicable, mandatory

341–343

Performance against service charter customer service standards, complaints data, and If applicable, 345


the department’s response to complaints mandatory

Discussion and analysis of the department’s financial performance Mandatory 353–362

Discussion of any significant changes from the prior year, from budget or anticipated to have a significant impact on future operations.

Mandatory 353–362

Agency resource statement and summary resource tables by outcomes Mandatory 332–384

Management and Accountability

Corporate Governance

Agency heads are required to certify that their agency comply with the Commonwealth Fraud Control Guidelines.

Mandatory 304

Statement of the main corporate governance practices in place Mandatory 300–305

Names of the senior executive and their responsibilities Suggested 12–13

Senior management committees and their roles Suggested 301–302

Corporate and operational planning and associated performance reporting and review Suggested 300–301

Approach adopted to identifying areas of significant financial or operational risk Suggested 302–304

Policy and practices on the establishment and maintenance of appropriate ethical standards

Suggested 340

How nature and amount of remuneration for SES officers is determined Suggested 340

External Scrutiny

Significant developments in external scrutiny Mandatory 305–309

Judicial decisions and decisions of administrative tribunals Mandatory 305

Reports by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman

Mandatory 337–343

Management of Human Resources

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory 337–343

Workforce planning, staff turnover and retention Suggested 337–338

Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and AWAs

Suggested 337–339

Training and development undertaken and its impact Suggested 339

Work health and safety performance Suggested 367–369

Productivity gains Suggested n/a

Statistics on staffing Mandatory 363–366

Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs

Mandatory 339

Performance pay Mandatory 339

Assets management

Assessment of effectiveness of assets management If applicable, mandatory

362

Purchasing Assessment of purchasing against core policies and principles Mandatory 349

Consultants The annual report must include 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 350


Australian National Audit Office Access Clauses

Absence of provisions in contracts allowing access by the Auditor-General Mandatory 351–353

Exempt contracts Contracts exempt from the AusTender Mandatory 350

Financial Statements

Financial Statements Mandatory 394–532

Other Mandatory Information

Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011) Mandatory 367–369

Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 372–373

Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 355–372

Compliance with the agency’s obligations under the Carer Recognition Act 2010 If applicable, mandatory

n/a

Grant programs Mandatory 370–371

Disability reporting–explicit and transparent reference to agencylevel information available through other reporting mechanisms

Mandatory 340

Information Publication Scheme statement Mandatory 374

Correction of material errors in previous annual report If applicable, mandatory

375

List of Requirements Mandatory 333–537

Index

A

abbreviations 532

Aboriginal and Torres Strait Islander Heritage Protection Act 1984 208

administered items 405–10

advertising 372–3

advisory groups to CEWO 161–3

Agency Resources Statement 382–4

Agreement on the Conservation of Albatrosses and Petrels 120

air conditioning, under Ozone Protection Regulations 89

Allen Consulting Group 36

Alligator Rivers Region 203, 205, 219–20, 223, 228, 234

Annual report on the Australian Government’s Australian Packaging Covenant Plan 2010-15 70

Antarctic Treaty 118–120, 124–128

Antarctic Treaty (Environment Protection) Amendment Bill 2012 119, 254,307

Antarctica 117–128

Australian Antarctic Science program 118–20, 124, 126

deliverables 124–6

grants programs 370

performance indicators 126–8

Secretary’s Review 10

appropriations 482–490

Arafura and Timor Seas Ecosystem Action project 32

assessment bilateral agreements 214

Assessment of the Social Outcomes of the Working on Country program 36

assets management 362

Atlas of Living Australia-funded National Species List 30

Auditor-General’s report 306

Aurora Australis 121

Australasian Antarctic Expedition anniversary 119

Australasian Institute for Maritime Archaeology 211

Australia State of the Environment 2011 18–9, 22, 50, 53

Australian Accounting Standards, changes to 413-6, 517–8

Australian Antarctic Division 118

office operations 313–4, 330–6

Australian Antarctic Science program 120–2

Australian Biological Resources Study 22, 30

Australian Convict Sites Steering Committee 207

Australian Faunal Directory 22

Australian Funds-In-Trust (AFIT) 205, 223

Australian Heritage Council 223, 242, 291

Australian Heritage Strategy 208, 210

Australian Marine Mammal grants program 54

Australian National Audit Office 305, 350

Australian National Shipwreck Database 211, 231

Australian Pesticides and Veterinary Authority 74

Australian Refrigeration Council 90, 94–5

Australian World Heritage Advisory Committee 210

B

balance sheets 399, 511

Barwon–Darling catchment 165–6

Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal 72, 96–7

basis of preparation of the financial statements 413, 516–7

Battle of the Coral Sea, ships lost in 226

bilateral agreements in environmental assessment 234, 259–60

Bill Dawbin Post-Doctoral Fellowship 31, 55

biodiversity and ecosystems 17–65, 236–97

Biodiversity and Heritage Board 301

Biodiversity Conservation Strategy 2010-30 29, 46

Biodiversity Fund 8–9, 20, 37, 57–9, 359, 370

biological resources, access to 252

biotechnology 74, 534

Bleich, Jeffrey 212, 226

Border Rivers catchment 166, 182, 184, 198

borrowing costs 419, 423

BP Seismic survey referral 265

Broken catchment 168–9, 180, 182, 192–3

Burke, Tony 5, 10

Bush Blitz 9, 30, 41–2

Business Continuity Plan 305

Buzzacott v Minister for SEWPaC 272

C

Campaspe catchment 168–9, 180, 183, 192–3, 198

Canberra, nominated to National Heritage list 208

Canberra offices operations 313–20

capability review 8, 301

capital budgets 486–7

Carbon Pollution Reduction – Land Sector Initiatives 33–4

carbon pricing 10

Caring for our Country Initiative 23–8, 60

carryover of water 171, 198

Casey Station 120, 125, 332

cash flow reconciliation

administered items 476

departmental 450

Natural Heritage Trust 527

cash flow statement


departmental 401


cash on hand


departmental 433


catchment areas, management of 166–9, 180–200

Certificate of Compliance 305

cetacean research permits 287

chemical assessments 74

chemicals reform agenda 72

Chief Finance Officer, statement by 397, 509

Clean Energy Future Plan 82–3, 71

Climate Change Authority Act 2011 33

COAG Standing Committee on Environment and Water 29, 71–2

Coalition Against Wildlife Trafficking 221

code of conduct 336, 339–40

Comcare investigations 369

Commission for the Conservation of Antarctic Marine Living Resources 119–20

Committee for Environmental Protection 124, 330

Commonwealth Environmental Water 2011–12 Business Plan 172

Commonwealth Environmental Water Advisory Council 161, 163

Commonwealth Environmental Water Holder 133, 135, 157–9, 161–3, 177

Commonwealth Environmental Water Office 133, 157, 178

Commonwealth Environmental Water Office Annual Report 153–200

Commonwealth Environmental Water Stakeholder Reference Panel 161–3

Commonwealth Heritage List 204, 208, 244

Commonwealth land, actions on 264

Commonwealth Ombudsman 305

Commonwealth reserves 251–55

Community Action Grants 23–4, 27

Community Coastcare 28

community information 344–5

compensation

departmental 498


compliance and enforcement, EPBC Act 267–72

Condamine–Balonne catchment 166, 185

Conduct and Ethical Behaviour Framework 337, 340

conservation agreements 20, 30

Construction and Demolition Waste Guide 70

consultancy services 350

consumer research into water use 152

contaminated site remediation 120

contingent assets and liabilities 404, 420, 451, 477, 521, 527

departmental 451


contracts 351–3

controlled substances licences 91

Convention on Biological Diversity 29

Convention on International Trade in Endangered Species of Wild Fauna and Flora 217, 250

Convention on the Protection of the Underwater Heritage 212

Coral Sea, Battle of 226

Coral Triangle Initiative 31

co-regulatory product stewardship 86–7

corporate governance 300–5

corporate outcome 299–362

corporate planning 304–5

Corporate Strategies Division 300

corrections 375

cost recovery 274, 504

Council of Australian Governments

amendments to EPBC Act 244

environmental approval process 218–9, 263–4

national reform agenda 278–9

Standing Committee on Environment and Water 29, 70

credit risk 459, 479

Crombie, David 34

Cumberland Plain Shale Woodlands 257

D

Dampier Archipelago 204

Darwin/Jabiru offices, Environmental Management 320–4

Davis Station 119

debt relief 498, 532

Debus, Bob 34

deliverables

Antarctica 124–6

Carbon Pollution Reduction – Land Sector Initiatives 57–8

Environment Protection and Heritage Conservation 233–4

Environmental Information and Research 50–2

Environmental Regulation 233–4

Management of Hazardous Wastes 80–2

Sustainable Communities 84

Sustainable Management of Natural Resources and the Environment 45–7

Water Reform 138–45

Department of Parliamentary Services 309

Department overview 11

Departmental Committees 301–3

Departmental Restructuring 445–9

depreciation and amortisation 429, 464

disability strategy 340–3

diversity groups 341

donations 346–7

Dorodong IPA 25

Draft Basin Plan 173

Dripps, Kimberley 13

Dugong dugon 43

E

East Asia Summit 348

East Asian–Australasian Flyway Partnership 33, 249

ecologically sustainable development 255, 311–2

economic indicators 353–4

Edward Braddon Commonwealth Law Courts, Hobart 208, 244

Eight Mile property 25

employee benefits 418, 428

employee provisions 444

Energy Resources of Australia Ltd 205

enforcement, EPBC Act 267–72

enterprise agreement 339

Environment and Communication References Committee 306

Environment Assessment and Compliance Division 202

Environment Protection (Alligator Rivers Region) Act 1978 203

Environment Protection and Biodiversity Conservation Act 1999 9, 21-2, 36, 38

deliverables 43, 46, 51, 142-3,

key performance indicators 56, 147

report on operation of 236-97

Environment Protection (Sea Dumping) Act 1981 202, 213, 216, 267

Environmental Asset Database 158, 173

environmental biosecurity 32

Environmental Contact Officer Network 314

environmental impact assessments 260–7

environmental indicators 315–36

environmental information and research 50–6

Environmental Management Systems 313

environmental offsets policy 273

Environmental Performance 313–36

Environmental Protection Act 1986 (WA) 215

Environmental Regulation 233–5

Environmental Stewardship program 20–1, 27, 37

environmental sustainability 310–3

environmental water delivery documents 177

Environmental Water Holdings Special Account 179

Environmental Water Management System 173

Environmental Water Scientific Advisory Panel 161

equity 362, 417–8

essential-uses licences 91

ethical standards 340

Excise Tariff Amendment (Product Stewardship for Waste Oil) Act 2000 109

executive committees 301

executive summaries 157–9

executive summary 8–16

exempt contracts 350

expenses


by outcome 385–93

departmental 428–30


external scrutiny 305–9

F

Farrell, Don 10

finance costs 429

finances 353–362

financial assets and liabilities

administered items 419–420, 467–8


Natural Heritage Trust 520–1, 525

reconciliation 461, 481, 530

financial instruments



Natural Heritage Trust 528–530

financial performance 14–5

financial statements 7, 394–532

fire ant control 23

fire protection equipment regulations 95–6

Fish River Station 41

fisheries management 251, 288–9

FluoroCycle scheme 69

flying fox monitoring program 204, 222

Framework for determining Commonwealth environmental water use 176

fraud control 304

freedom of information 374

Frey, Harry 226

Friends across the Pacific booklet 226

Fuel Quality Standards Act 2000 75, 78–9, 98–109

fuel sampling statistics 101

Fuel Standard (Autogas) Determination 2003 99

Fuel Standards Consultative Committee 99, 102–103

Fuel Standards Quality Regulations 2001 100

Fuller, Richard 33, 249

G

gains


departmental 417


Garawa Rangers 44

Gene Technology Regulator 74

ghost net recovery 254

Gippsland Lakes 28

Glenn Parker & Others v Minister for SEWPaC 271–2

Global Reporting Initiative 376–381

glossaries 109, 154

Goulburn catchment 168–9, 192–193

Graduate Steering Committee 302

grants programs 351–354

administered items 463, 475

amounts of 346–347


expenses 429, 442

heritage grants 208–211, 220

Great Barrier Reef World Heritage Area

development assessments 216, 221

joint monitoring mission 203, 239

strategic assessment 256

Greening the Marthaguy project 136

Grimes, Paul 5, 12, 397, 509

Guest, Chris 150

guide to the annual report 6–7

Guide to undertaking strategic assessments 216

Gulf of Carpentaria 44

Gumma IPA 25

Gwydir catchment 165, 167, 186

H

Hawke Review of National Capital Authority 309

Hawke Review of the EPBC Act 272–3

Hazardous Waste (Regulation of Exports and Imports) Act 1989 69, 74, 96–8

Hazardous Waste Technical Group 98

Health and Safety initiatives 367–8

Heathcote Ridge, NSW 216, 256

Heritage and Wildlife Division 202

Heritage Chairs and Officials of Australia and New Zealand 209

heritage grants programs 210–2

High-level Seminar on Environmentally Sustainable Cities 348

Historic Shipwrecks Act 1976 211–2

HML Investments Pty Ltd 80

HMS Sirius shipwreck 208

House of Representatives Committee on Regional Australia 309

House Standing Committee on Climate Change, Environment and the Arts 307

Housing Affordability fund 371

Hughes, Lesley 34

Human Resources 336–43, 363–6

human rights, corporate performance 336

hypoxic blackwater 170

I

ice core studies 122

Iconic Sites Taskforce 210

impairment of water entitlements 426

imports under Ozone Protection Acts 92

income

departmental 431


Independent Review of the Operation of the EPBC Act 239–242

Independent review of the Water Efficiency Labelling and Standards scheme 150

Indigenous Advisory Committee 208, 242–3, 293

Indigenous programs

Caring for our Country Initiative 26

Indigenous Emissions Trading scheme 26, 35–36

Indigenous Employment and Capability Strategy 337, 341

Indigenous Fire Management project 21

Indigenous Heritage program 208–210, 210

Indigenous Protected Areas 20, 25–6, 306

Indonesia Working Group 349

Indo-Pacific Cetacean Research and Conservation Fund 31

information and communications technology 314

information management committee 302

intangible assets


departmental 422, 436, 439–440

interest bearing liabilities 443

internal audit 302–303

international agreements on sustainability 72–3

International Court of Justice, case against Japan 21, 31

international heritage sites 205–206, 222–223

international marine conservation initiatives 32–33

international policy advice 347–349

International Union for Conservation of Nature 33

International Whaling Commission 20, 30–31

inventories


departmental 422–423, 441

investigations under EPBC Act 269–270

investments 477

irrigation infrastructure 131

J

Jobs Fund Heritage program 222

Joint Standing Committee on the National Capital and External Territories 308–9

Joint Standing Committee on Treaties 361

jointly controlled assets 361

Jordan River Levee Site 208, 243

K

Kevin McLeod Award 341

key performance indicators

Antarctica 117

Environment Protection and Heritage Conservation 201

Environmental Information and Research 50–53

Environmental Regulation 213, 233

Human Resources 337

Management of Hazardous Wastes 80

Sustainable Communities 84

Sustainable Management of Natural Resources and the Environment 23, 45

Water Reform 145–148

King Island, biodiversity protection 221

Kingston and Arthurs Vale Historic Area 207

koalas, species management 227, 268

Kokoda Initiative 204, 206, 230, 357, 361

Kokoda Track Authority 206

Kyoto Protocol 71, 88

L

Lachlan catchment 167, 187–8

land and buildings 438–48, 470

Land Sector Carbon and Biodiversity Board 22, 33–4

Land Sector Package 19

Landcare, funding for 26

leadership development program 339

learning and development 339

leases 419

legal actions, under EPBC Act 271–2

legislation amendments 276–7

letter of transmittal 5

liabilities, see assets and liabilities

licensing activities 89–2, 104–8, 105–9

liquidity risk 460, 480

list of requirements 543–7

live animal imports 249–50

Living Whales in the Southern Ocean 22

Loddon catchment 168–9, 192–3

Lord Howe Island Group 207

M

Macquarie Island pest eradication program 27, 119, 243

Macquarie–Castlereagh catchment 167, 189, 191

Madrid Protocol 119

management of hazardous wastes 80–5

mandatory product stewardship 73, 87

Mandingalbay Yidinji IPA 26

Marine Bioregional Plans 21, 259

maritime heritage programs 211–2

market risk 460, 480

marketing 372–3

Marthaguy Irrigation Scheme Pty Ltd 136

Mawson Antarctic Expedition anniversary 119

Memorandum of Understanding on the Conservation of Migratory Sharks 248–9

Midlands water scheme 216, 221, 256

migratory species 238, 244–9

ministerial services 344

Minyumai IPA 25

Molonglo Valley plan 216, 221, 256, 258

monitoring, evaluation, reporting and improvement framework 175

Montara Environmental Monitoring program 33

Montreal Protocol on Substances that Deplete the Ozone Layer 71, 89, 96

Moonie catchment 168, 190

Murray catchment 169–70, 194–6

Murray–Darling Basin

Basin Plan 134, 158, 173

water delivered to 131, 183

water holdings in 164, 180–2

Murrumbidgee catchment 165, 169–70, 197

N

Nagoya Protocol 22, 29

nanotechnology 74

National Centre for Cooperation on Environment and Development 275

National Disability Strategy 340

National Environment Law Reform package 273–4

National Environment Protection (National Pollutant Inventory) Measure 1998 74

National Environmental Research program 19, 20, 31

National Framework and Guidance for Describing the Ecological Character of Australia’s Ramsar Wetlands 244

National Halon Bank 93, 425

National Heritage listings 203, 243

National Hydrological Modelling Platform 133

National Industrial Chemicals and Notification Assessment scheme 74

National Oceanic and Atmospheric Administration (US) 226

National Parks 251, 276

National Plan for Clean Air 72

National Plan for Environmental Information 19–20

National Pollutant Inventory 74

National Representative System of Marine Protected Areas 19, 21, 32, 241

National Reserve System 20, 24, 61

National Taxonomy Research Grants program 22

National Television and Computer Recycling scheme 77–8, 86

National Waste Policy 70–1, 75–6

National Water Knowledge and Research Platform 132

National Wildlife Corridors Plan 21–2, 27

Natural Heritage Trust of Australia 23, 59–65, 416, 506–32

Natural Heritage Trust of Australia Act 1997 60

net cash appropriation arrangements 505

Netherlands, shipwreck treaty with 212

New South Wales

environmental agreements with 215

water shepherding 176

New Zealand, discussions with 348–9

non-financial assets 435–41, 469–74

Northern Victoria Irrigation Renewal project 131

notes to financial statements



notifiable incidents 368–9

O

objectives 412–3, 516

occupational health and safety 367–9

Of drought and flooding rains report 157, 160

Office of Water Science 130, 132

Olympic Dam project 204, 214

Online Information 343–4

Operation CETUS 241–2, 268

operational planning 300–1

Organisation for Economic Cooperation and Development (OECD) 348

organisational structure 14

outcomes

expenses by 385–93

financial reporting by 499–503

program structure and 11–12

Ovens catchment 168–9, 192–3

own-source revenue 465

Ozone Protection and Synthetic Greenhouse Gas Account 93

Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 88

Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 70–1, 80, 88–96

Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 89

Ozone Science Group 94

Ozone Science Strategy 93

P

Pacific Heritage Hub 205–6

Pacific Public Sector Linkages program 205–6, 223

Pacific Reef Fisheries (Bowen) Pty Ltd vs Minister for EPHA 272

Paddock to Reef Integrated Monitoring Modelling and Reporting program 37

Palau, assistance to 205

Parker, David 13

Parks Australia, Environmental Management 325–330

Parliamentary Committee reports 306–9

parliamentary services 344

Parramatta, heritage sites in 207

payables


departmental 463


payments to CAC Bodies 464

penguins, satellite census of 119

performance 6, 15, 338–343, see also Key Performance Indicators

Perth and Peel region 216, 256

pest management 27, 32

Policy and Communications Division 300

portfolio structure 10

precharged equipment licences 91

Principles of Consolidation 416

Private Irrigation Infrastructure Operators program 136–7, 306

private members’ Bills 276

procurement 349–53

Product Grants and Benefits Administration Act 2000 109

product notices 87

Product Stewardship Act 2011 69, 73, 75, 85–88

Product Stewardship Advisory Group 87

Product Stewardship for Oil program 109–10

Product Stewardship Levy 112–3

product stewardship obligations 90

Product Stewardship (Oil) Act 2000 75, 109–116

Product Stewardship ( Oil) (Consequential Amendments Act) 2000 109

Product Stewardship (Televisions and Computers) Regulations 73, 86–7

project management 304–5

property, plant and equipment 421–2, 435–8, 469–71

Proposed Model for Accreditation of Voluntary Product Stewardship Arrangements 73–4

Protected Areas 20, 251–5

provisions 444

Public Affairs 343

publications under EPBC Act 294–5

Q

Queensland

environmental agreements with 215, 222, 260


quotas, under Ozone Protection Acts 90

R

rainfall decline 122

Ramsar wetlands 28, 240, 244

Ranger uranium mine 228–9

Reconciliation Action Plan 302, 342

reconciliation schedule, administered items 407

reduction in administered items 489–90

Reef Rescue program 20, 27–8, 37

referrals for environmental approvals 261

referrals under the EPBC Act 278–81

Refrigerant Reclaim Australia 91

Refrigerant Regulations 94–5

Regional Natural Resource Management Planning for Climate Change Fund 35

Regional Rail Link project 263

register of environmental organisations 346

Regulatory Compliance Executive Committee 302

Regulatory Impact Statement on packaging waste and litter 69

Regulatory Reform Taskforce 273–6

related party disclosures 451

remuneration

auditors 457, 527

senior executives 340, 452–6

reporting requirements 178–9, 424–7, 499–503

Restoring the Balance in the Murray–Darling Basin program 134

Restricted Refrigerant Trading Authorisation 94

revenue

departmental 417

from Ozone Protection Acts 90, 92–3


Rio Tinto 33, 249

risk management 177–8, 303–4

Robertson, Eddie Jampijinpa 39

Robinson, Ian 158

Rock Islands Southern Lagoon 205

Ross, Joe 34

Rotterdam Convention 72

Royal Exhibition Building, Melbourne 204, 206, 239

S

sale of assets 432

sale of goods and services 431

schedule of contingencies 404

schedules of commitments 402–3, 514

Sea Installations Act 1987 216

Secretariat for the Pacific Regional Environment programme 31

Secretary to the Department of Sustainability and Environment (Vic) v Minister for SEWPaC 272

Secretary’s review 8–10

Senate Standing Committee for the Scrutiny of Bills 307

Senate Standing Committee on Environment and Communications 308

Senate Standing Committee on Rural and Regional Affairs and Transport 308

senior staff

executive committees 301–2

management team 12–3

remuneration for 340, 452–6

Service Charter 345

significant accounting judgments and estimates 414, 517

Singapore Study Tour 348

Sirius Shipwreck site 243–4

Skarbek, Anna 34

Smyth and Bahrdt Consultants 36

social inclusion 341–3

Solenopsis invicta 297

South-east Commonwealth Marine Reserve Network 32, 253–4

Southern Ocean Research Partnership 20, 22, 30, 121

Southern Tanami Indigenous Protected Area 491–7, 531

special accounts 494–500, 534

species recovery plans

new listings 204

number of listings 286–7

overview 38

under EPBC Act 213–4, 240, 248

SPRAT database 217, 333

stakeholder relations 343–7

Standing Working Group on Conservation Management Plans 31

State Engineers Australia Award for Excellence 119

statements of changes in equity 400, 512

statements of comprehensive income


departmental 398


Stockholm Convention on Persistent Organic Pollutants 73

Strategic Directions 2012-2022 120

strategic environmental assessments 215–7, 241, 255–260

Strategic Overview for Management of the Gondwana Rainforests of Australia World Heritage Area 207

Stronger Futures in the Northern Territory jobs package 26

structure of the annual report 6

subsidies 462, 475

Suburban Jobs program 69, 74

summary of significant accounting policies 412–26, 516–521

Supervising Scientist Division 203, 205, 219–20, 223

suppliers 428, 442, 462, 478

sustainable agriculture 26

Sustainable Communities 10, 84–5

sustainable diversion limits 133

sustainable management of natural resources and the environment 45–9

sustainable population and communities 66–116, 370

sustainable water 129–200, 371

Sustainable Water Use and Infrastructure program 134

sustainable wildlife industries 250

Sydney growth centres 257

T

Tasmanian Conservation Trust Inc v Minister for SEWPaC 271

Tasmanian Forests Independent Verification Report 23

Tasmanian Forests Intergovernmental Agreement 21, 29–30

Tasmanian Forests National Partnership Agreement 23

taxation issues 423, 521

Thelangerin 24–5

Thompson, Malcolm 13

threat abatement plans 248, 296–7

Threatened Species Scientific Committee

activities of 244–8

advice from 213

advice to 216

membership 292

new listings 221, 227, 285

support for 202

under EPBC Act 240, 242

Torres Strait Environmental Management Committee 349

trade and other receivables 433, 467

Trans-Pacific Partnership Agreement 349

tropical fire ant control 254

Tuggerah Lakes 28

U

UN Conference on Sustainable Development 347

United Nations Environment Programme 347

Urban Sustainability: Adapting to Change seminars 348

Urbis Pty Ltd 36

used oil 75

used-substance licences 91

V

van Ommen, Tas 122

Vance, Tessa 122

Vessel Monitoring System data 23

voluntary product stewardship 86

W

Waanyi Garawa Rangers 44

Warlpiri Rangers 39

Warrego catchment 172, 190–1

waste management 9

Water Act 2007 174

water availability scenarios 199–200

Water Efficiency Division 130

Water Efficiency Labelling and Standards Act 2005 149–52

Water Efficiency Labelling and Standards Advisory Group 152

Water Efficiency Labelling and Standards Amendment (Scheme Enhancements) Bill 2012 150

Water Efficiency Labelling and Standards Determination 2011 150

Water Efficiency Labelling and Standards Officials Group 152

Water for the Future initiative 133

Water Group 130, 302

water management 10

Water Reform Division 130, 137–47


WaterMark certification 151

weeds 27, 32

Weilmoringle IPA 25

WELS Scheme Strategic Plan 150

West Kimberley region 203, 208, 224–5, 243

Western Australia, environmental agreements with 215, 222, 260

Western Australian Land Authority (Landcorp) v Minister or SEWPaC 271

Western Sydney growth centres 257

Wheatstone project 204, 214, 266

wildlife management 216–19, 221, 249–51, 286–7

wildlife trade permits 250–1

Windsor Inquiry 156, 160

workers compensation 368

Workforce Capability Framework 338

Workforce Management Committee 302

workforce planning 338–43

workforce profile 363–66

Working Group on Conservation Management Plans 22

Working Group on Whalewatching 30

Working on Country program 20, 26, 36–7, 44

World Heritage management 205–6, 243

write-down and impairment of assets 430, 464

Y

Your Community Heritage program 204, 210, 361, 371

Back cover (L to R)

Icebergs near Mawson Station, Antarctica (© Chris Wilson 2012), Overview of high density housing suburb (Siler Sun Pictures), Fighting to save Cape York sea turtles (Kerry Trapnell), Televisions and computers collected under the National Television and Computer Recycling Scheme, Mugga Lane Transfer Station, ACT (Andrew Tatnell).

Front cover (L to R)

North West Island Reef (Great Barrier Reef Marine Park Authority), Green tree Frog near Springsure (Cathy Zwick), Koala and young in tree near Gunnedah (Dan Lunney), Sweet corn crop under irrigation from a centre pivot (Arthur Mostead), Dampier Peninsula, near Kooljaman at Cape Leveque (Andrew Tatnell).

Outcome images

Page 16 Paroo River reflections. (Andrew Tatnell)

Page 66 Pedestrians and traffic on the streets of the Melbourne CBD. (Alex Zuk)

Page 117 Icebergs near Mawson Station, Antarctica. (© Chris Wilson 2012)

Page 129 Lake Hume and the Mitta River, located east of Albury-Wodonga, Victoria. (Bell Commercial Photography (2008))

Page 201 Sunset over the Dampier Peninsula, near Kooljaman at Cape Leveque. (Andrew Tatnell)

Page 298 Department of Sustainability, Environment, Water, Population and Communities inside foyer. (Andrew Tatnell)

Documents

Department of Sustainability, Environment, Water ...environment.gov.au/.../files/annual-report-2011-2012.docx · Web viewDepartment of Sustainability, Environment, Water, Population