Department of the Environment and Energy

Annual Report 2016–17

Chapter 3: Management and Accountability

www.environment.gov.au/annual-report-2016-17

© Commonwealth of Australia, 2017.

MANAGEMENT AND ACCOUNTABILITY

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3 Management and Accountability

Corporate governance

Senior management committees and their rolesThe governance structure of the Department includes the Executive Board, the Portfolio Audit Committee and five departmental governance committees: the Regulatory Maturity Committee, the Information and Technology Committee, the Governance and Performance Committee, the People Committee and the Departmental Health and Safety Committee (see Figure 3.1). The departmental governance committees report to the Accountable Authority through the Executive Board. The Portfolio Audit Committee reports directly to the Secretary (see ‘Internal audit’ for further information, page 148).

An important objective of our governance arrangements is to enable the Department’s senior executive cohort to contribute strategically to the direction and content of the Department’s corporate policies and processes. Each committee has a clear set of responsibilities for decision-making across designated areas of focus.

Each committee comprises Senior Executive Service Band 1 and Band 2 members, an Executive Board member and an Executive Level (EL) 2 member. The Departmental Health and Safety Committee includes worker representatives at the EL and Australian Public Service levels and has a worker representative as a co-deputy chair.

In 2016, an external review of the Department’s governance committees assessed the committees against their terms of reference and considered how they worked with each other to fulfil their obligations to the Department’s Executive Board.

The review report made 11 findings and 22 recommendations. The Executive Board supported all recommendations. The committees have implemented 21 of the 22 recommendations, with the last recommendation to be finalised by October 2017. Actions taken in addressing the recommendations have significantly strengthened the operation of the committees and led them to make a more effective contribution to the Department’s strategic direction.

Figure 3.1: Departmental governance committees

Corporate planning and evaluationIn September 2016, the Department published its Corporate Plan 2016–17 in accordance with the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule). The plan identifies strategic priorities for 2016–17 and the activities we plan to undertake to achieve our purposes. It sets out our role, operational context, capability and risk oversight and management. The corporate plan includes the performance measures we use to assess the extent to which we

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achieve our intended results. This information cascades through corporate, division and branch plans and into individual performance agreements.

www.environment.gov.au/system/files/resources/c4e81c33-1030-473b-bd71-80d1c70a9a29/files/corporate-plan-2016–17.pdf

To support our Evaluation Policy 2015–20 we developed an implementation plan during 2016–17. The plan outlines four streams to mature the Department’s evaluative culture: building an evaluation culture, building evaluation capability and capacity, establishing a strategic approach to evaluations, and embedding evaluation in departmental systems and processes. To strengthen ongoing support and advice for line areas on building evaluation into policy, program and regulatory design and implementation, we had an evaluation visiting fellow (see below), training in program logic, seminars on evaluation and an evaluation community of practice. These activities are part of our commitment to being a learning organisation and to implementing best practice evaluation.

Visiting fellow programIntroduced in 2015–16, the Department’s visiting fellow program aims to engage external experts to obtain insights into the portfolio’s strategic priorities and build staff capability. The Department’s second visiting fellow is Vanessa Hood, a skilled evaluator, facilitator and trainer. To support the Department’s commitment to developing an evaluative culture, Ms Hood is undertaking activities that support implementation of our evaluation policy and underlying plan. Ms Hood has advised divisions on evaluations they are conducting, delivered presentations and workshops to staff and increased the evaluation knowledge and awareness of the senior executive. Continuous improvement in learning organisations requires a strong evaluative culture. Accordingly, Ms Hood is leading a research project to examine how we can become a stronger learning organisation.

The visiting fellow program is a mechanism through which we are introducing new ways of doing things into the Department. The program is designed to build staff capability, particularly in relation to analytical approaches and strategic thinking, and bring a diversity of views to broaden the Department’s organisational culture and intelligence.

Risk managementOur best practice approach to managing risk effectively helps the Department achieve its objectives. Managing risk is about taking proactive action, rather than taking a defensive position. It involves identifying opportunities for success, identifying threats that will hinder success, and continual adaption and review. All staff in the Department play an important role in developing a risk-aware culture.

The risk management framework articulates our strategies for managing risk. It comprises policy, guidelines, tools and templates. It informs staff of responsibilities and expectations and helps them identify, analyse and manage risk. The Department reviewed and updated the framework to facilitate a positive culture of risk management at every level, create a clearer connection between the framework and our objectives, and integrate risk principles in business processes.

In 2016–17, the Department:

engaged with other Australian Government agencies to share risk management approaches and practices

redefined departmental risk categories and set enterprise risk tolerance levels suitable to our operating environment

updated the risk policy with guidance on shared risk, working within tolerances, risk prioritisation, and cost-benefit analysis of proposed treatments

improved the risk assessment templates to reflect our more mature approach

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to risk management

incorporated strategic risk assessment in the corporate planning cycle

implemented an internal network to drive change across divisions.

The framework is supported by a central team who facilitate divisional risk workshops, and deliver advice and guidance.

In 2017, the Department performed well in the annual Comcover Risk Management Benchmarking Survey, which assesses the risk management capability of entities using a risk maturity model. As in 2016, we received an overall maturity level of ‘Advanced’ and an optimal maturity level for six of the nine elements of the Commonwealth Risk Management Policy. This indicates a consistently high performance in foundational risk elements.

Internal auditThe internal audit program improves the operation of the Department by evaluating and improving the effectiveness of risk management, controls and governance processes within and across each division. In 2016, the Department adopted a thematic approach to the selection of audit topics, giving the 2016–17 Internal Audit Plan greater strategic focus.

Consistent with subsection 45(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) the Department established the Portfolio Audit Committee in 2015. The committee provides independent assurance and advice to the Department, the Director of National Parks and the Sydney Harbour Federation Trust. In 2016–17, the Department completed and tabled seven internal audit reports to the Portfolio Audit Committee. The committee met five times in total.

There were two new appointments to the committee. In October 2016, Ms Margaret Sewell replaced Dr Diana Wright as a departmental member. In March 2017, Ms Caroline Spencer replaced Ms Vicki Middleton as an independent member (see Table 3.1).

Table 3.1: Portfolio Audit Committee membership and meeting attendance, 2016–17

Member Role No. of committee meetings eligible to attend

No. of committee meetings attended

Geoff Knuckey Independent Chair 5 5Michael Roche Independent member 5 5Vicki Middleton Independent member 4 4Diana Wright Member 2 1Dean Knudson Member (Deputy

Chair)5 3

Margaret Sewell Member 3 1Caroline Spencer Independent Member 1 1

Fraud controlThe Department’s Fraud and Corruption Control Plan 2017 promotes a culture that prevents, detects and deters fraud. It:

makes a statement of zero tolerance for fraud

sets out how we manage our fraud risks

describes employees’ fraud control responsibilities

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describes our fraud prevention, detection and investigation arrangements

sets out our fraud reporting obligations.

We prepared the plan in accordance with the PGPA Act requirements. To reflect our activities, we review the plan every two years and whenever there is a change in our work. Fraud risk assessments underpin the plan. Appendix 1 provides the Secretary’s certification that:

the Department has prepared fraud risk assessments and fraud control plans

appropriate mechanisms that meet the Department’s specific needs are in place for preventing, detecting incidents of, investigating or otherwise dealing with and recording or reporting fraud

we have taken all reasonable measures to deal appropriately with fraud relating to the Department.

Fraud risk assessmentThe assessment process involves senior executives, program managers and subject matter experts. They evaluate existing and emerging fraud risks annually to ensure appropriate controls are in place to manage those risks.

Fraud awarenessOur fraud awareness strategy includes online fraud awareness training and regular fraud-related messages to staff. Online training tools, to satisfy the training needs for the Department’s diverse activities, are available to staff. In 2016–17, we developed face-to-face awareness training and tools, which we plan to implement in 2017–18.

Fraud investigationOur Investigations and Intelligence Section and Workplace Behaviour and Conduct Unit investigated allegations of fraud and criminal behaviour that involved our staff and recipients of our funding. They reported risks identified through these investigations to the relevant departmental governance committees. If appropriate, we submit briefs-of-evidence recommending prosecution to the Commonwealth Director of Public Prosecutions for consideration.

The Department conducted its investigations in line with the Australian Government Investigation Standards. All departmental investigators have at least the minimum qualifications defined in the standards.

Project managementThe Department provides guidance on and support for project management to ensure that departmental projects are managed professionally. In 2016–17, we reviewed the project management framework to create efficiencies that will enhance productivity and performance in a wide range of settings.

Public Governance, Performance and Accountability Act complianceAmong other things, Section 19(1) of the PGPA Act requires accountable authorities of Commonwealth entities to notify their responsible minister, as soon as practicable, of any significant issue that has affected the entity. Such issues include significant non-compliance in relation to finance law. Finance law includes the PGPA Act, the PGPA Rule, and instruments made under the PGPA Act (including Accountable Authority Instructions) and appropriation Acts. During 2016–17, the Department did not identify significant breaches of the PGPA Act to report.

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We achieve compliance with the Government’s resource management framework through a combination of procedural and system-based controls that direct spending and resource-related decisions. Face-to-face and online training is available to all staff to support their knowledge of the requirements concerning appropriate use of public resources. Continuous internal quality assurance and monitoring activities are in place.

Central policy support

Communications and engagementThe Department’s central communications and engagement teams advised staff on internal and external communication strategies, market research and campaigns, corporate branding, and communications content and products. They coordinated media and social media policy and activity for the Department and portfolio agencies, including media training, liaison, issues management, and events.

The Department’s social media presence grew substantially, with our Twitter, Facebook, YouTube and Instagram accounts showcasing and encouraging engagement with policies and programs across the portfolio. Working closely with people management and the Australian Public Service Commission, we refreshed our LinkedIn account. We explored how these social media platforms can help to expand the reach of the Department’s formal consultations.

Our Community Information Unit responded to requests from the public for information and feedback on our services. In 2016–17, the unit responded to 8239 email and telephone enquiries, of which:

34 per cent were about grant and funding programs

66 per cent were seeking general information about the Department and its programs.

International engagement activitiesIn 2016–17, the Department engaged in international activities which aligned with our international strategy and focused on strengthening important bilateral and regional relationships through joint agreements and through building relationships and knowledge from strategic engagement in multilateral forums.

We pursued outcomes in international forums that support domestic priorities related to:

Antarctica and the Southern Ocean (pages 110–113)

biodiversity and ecosystem services (pages 24, 25 and below)

climate change (pages 90–92)

energy security and investment (pages 121–123)

hazardous waste and chemicals (pages 81–84)

protection of the ozone layer (pages 81 and 82)

wetlands of international importance (pages 42 and 43)

whales and migratory species (pages 70, 72 and 73)

wildlife trade (pages 69 and 70)

World Heritage (pages 24–26 and 69).

Bilateral engagement7

The Department continued to build on our already important bilateral relationships over 2016–17 to forge stronger global ties and to share information, policies and programs of mutual interest in our region and more broadly. These included transboundary issues such as marine conservation, sustainable management of marine resources, and climate change. The Department worked bilaterally with major trading partners on energy-related issues, including market reform, investment, energy security and clean energy.

In 2016–17, the Department signed high-level cooperative agreements on a broad range of environment and energy topics with counterpart agencies in Germany, China, India, the Republic of Korea, and Israel.

IUCN World Conservation Congress The Department attended the International Union for Conservation of Nature (IUCN) World Conservation Congress held in Hawaii in September 2016. The Congress included a meeting of the Members’ Assembly, decided motions concerning the general policies of IUCN, elected the IUCN Council and Commission Chairs, and set IUCN’s work program for the next four years. We negotiated Australia’s response to motions, including those that relate to protected area policy and our obligations under the Convention on Biological Diversity.

Organisation for Economic Co-operation and Development During 2016–17, the Department participated in strategic meetings of the Environment Policy Committee of the Organisation for Economic Co-operation and Development (OECD). The committee plays a role in identifying effective and economically efficient responses to environmental challenges such as polluted air, municipal waste, water scarcity, ozone depletion, biodiversity loss, and climate change. The OECD has begun its third mandatory Environmental Performance Review of Australia. The Department is leading Australia’s input to the review across governments. The review is expected to be published in early 2019.

Sustainable Development Goals In 2015, 193 member states of the United Nations adopted a set of 17 Sustainable Development Goals as part of the 2030 Agenda for Sustainable Development. The goals will shape the world’s approach to growth and sustainable development until 2030. They address issues including health, food and agriculture, water and sanitation, human settlement, energy, climate change, sustainable consumption and production, oceans, biodiversity and terrestrial ecosystems.

The Department is working to give effect to the environment and energy goals in various ways, including identifying opportunities to integrate them into our core business.

UN EnvironmentUN Environment (formerly the United Nations Environment Program) has a central role in setting the global environment agenda. The achievements of the organisation include establishing international conventions on the ozone layer, wildlife trade, chemicals and hazardous waste. It plays a central role in climate change science and policy.

The United Nations Environment Assembly, the decision-making body of UN Environment, meets biannually. In 2017, the UN Environment Assembly is developing global responses to air pollution, soil pollution, marine litter, waste, water contamination, marine pollution and chemicals. The Department has been actively engaging with UN Environment and other UN member states to ensure the 2017 UN Environment Assembly is relevant to and reflects our environment, energy and climate change priorities and positions.United Nations Convention to Combat Desertification

Australia has been a signatory since 2000 to the United Nations Convention to Combat Desertification, which has been adopted by 195 parties. The convention’s objective is to reverse

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and prevent desertification and land degradation and to mitigate the effects of drought in affected areas to support poverty reduction and environmental sustainability.

The Department coordinated the preparation of Australia’s voluntary national report to the fifth reporting cycle of the convention. Released in 2016, the report outlined Australia’s activities that assist with reducing land degradation and managing the impacts of climate and drought.

Innovation and behavioural insightsThe Department is committed to pursuing a more innovative culture and supporting staff to apply creative approaches to environment and energy issues. Behavioural insights is informed by advances in behavioural economics, psychology and neuroscience and focuses on how humans make decisions and act in the real world. Applying behavioural insights principles can help us to tailor policy and programs to be more effective wherever there is a human element. The Department’s Design and Analytics Section is championing innovative approaches and building behavioural insights capacity across the Department.

In July 2016, we participated in the Australian Public Service (APS) Innovation Month by holding a series of events designed to support increased uptake of innovative practices and ways of thinking. The APS-wide theme in 2016 was ‘Disrupt, Develop, Display’. The Department’s major event for Innovation Month was ‘Hack the Planet’, which challenged staff to create an innovative solution to a problem faced by the Department through user-centred design techniques. The Department then trialled ideas from this event to improve efficiency and effectiveness.

In 2016–17, the Department encouraged innovation through the Secretary’s Award for Innovation. The winning projects were Monitoring Sounds of the Sea—an omnibus tool for managing Commonwealth Marine Reserves, SoE Digital—the state of the environment digital information platform, and Start Smart—a set of reforms to streamline the process for integrating new staff into the Department.

Over 2016–17, we partnered with the Department of the Prime Minister and Cabinet’s Behavioural Economics Team of the Australian Government to trial behavioural interventions with environmental impacts. For example, we are partnering with a major retailer to test a behaviourally informed energy efficiency rating label. Behavioural insights research on motivation suggests that consumer understanding of the label may be improved by showing an obvious link between energy-efficient products and long-term cost savings.

We continued to build our capability to use behavioural insights, including by delivering training across the Department to provide an understanding of basic concepts underpinning behavioural insights and the use of randomised controlled trials to rigorously test behaviour interventions. This included helping staff to access training through the Behavioural Economics Team.

Improving our regulatory capabilityWe are committed to continually improving our regulatory capability and delivering environment and energy outcomes through better practice regulation. Over the last 12 months we have built a solid foundation for this work as part of our commitment to transforming the way we work. This includes establishing the Regulatory Maturity Committee and the Office of Compliance, co-designing our new regulatory framework with business and the wider community, clearly defining regulatory outcomes and performance measures, and rewriting our approach to engagement, starting with the website.

Our regulatory framework will inform our decisions, our engagement strategy, our risk posture, and the approach we take to enforcement. It will help us communicate with the community who we are, what we do and how we will engage across our regulatory spectrum.

To support our ability to review and report on our performance in improving our regulatory capability, we are developing an evaluation plan. Once implemented, the regulatory performance

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evaluation plan will streamline reporting of our performance across our regulatory functions through the use of a consistent set of outcomes, indicators and measures.

We will trial the evaluation plan indicators through a baseline evaluation in the third quarter of 2017. The results of this baseline evaluation will be used to meet requirements of the Regulator Performance Framework. The baseline evaluation will provide a meaningful assessment of our regulatory performance.

Register of Environmental OrganisationsThe Register of Environmental Organisations is a Commonwealth tax deductibility scheme for environmental organisations under the Income Tax Assessment Act 1997. It allows eligible organisations to be endorsed as deductible gift recipients by the Australian Taxation Office. Donations made to organisations that are deductible gift recipients will be tax deductible for the donor.

The Act requires the Department to maintain the register and to add or remove environmental organisations and their public funds by joint direction of the Minister for the Environment and Energy and the Minister for Revenue and Financial Services. Further information is available on our website.

www.environment.gov.au/about-us/business/tax/register-environmental-organisations

During 2016–17, the Minister, the Hon Josh Frydenberg MP, and the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, approved the entry of 30 organisations and their public funds on the register and removed 21 organisations and their public funds from the register. Eleven organisations requested voluntary removal, eight organisations did not submit statistical returns and two organisations became ineligible because their Australian Business Number was cancelled. As at 30 June 2017, the register contained 624 environmental organisations.

Registered environmental organisations reported receiving about $154 million in donations in 2015–16. Information for 2016–17 is being provided to the Department by organisations.

External scrutinyThis section details significant developments in external scrutiny that the Department was subject to in 2016–17.

Courts and tribunalsAbraham v Hon Josh Frydenberg, Minister for the Environment and Energy and Anor (WAD590/2016)

On 21 December 2016, Ms Abraham sought an interim injunction to prevent Main Roads Western Australia from starting work on the Roe Highway Extension. The applicant sought the injunction on the basis that it would allow the Minister to make a decision under section 9(1) of the Aboriginal and Torres Strait Islander Heritage Protection Act 1984.

On 3 January 2017, the Federal Court dismissed the application.

Australian Conservation Foundation Inc v Minister for the Environment (QUD1017/2015 and QUD726/2016)

On 9 November 2015, the Australian Conservation Foundation applied to the Federal Court for judicial review of the decision of the former Minister on 14 October 2015 to grant an approval under the Environment Protection and Biodiversity Conservation Act 1999 for Adani Mining Pty Ltd to undertake the Carmichael Coal Mine and Rail Infrastructure Project (EPBC 2010/5736).

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On 29 August 2016, the Federal Court dismissed the Australian Conservation Foundation’s application.

On 19 September 2016, the Australian Conservation Foundation applied to the Full Federal Court to appeal that decision.

The Court heard the matter on 3 March 2017 and reserved judgment.

Australian Energy Regulator v Australian Competition Tribunal and Ors (NSD415/2016)

On 24 March 2016, the Australian Energy Regulator made an application in the Federal Court for judicial review of the Australian Competition Tribunal’s decision to set aside certain electricity and gas network revenue determinations under National Electricity Law and National Gas Law.

On 24 May 2017, the Full Federal Court handed down its decision. The Court upheld the Regulator’s applications for judicial review in respect of the Tribunal’s construction of the Rules in relation to the value of imputation credits. The Full Court otherwise dismissed the Australian Energy Regulator’s applications.

Beverich Holdings Pty Ltd v Minister for the Environment (AAT2016/1546)

On 29 March 2016, Beverich Holdings Pty Ltd applied to the Administrative Appeals Tribunal for review of a decision to refuse a permit to export cathode ray tube glass (hazardous waste) to South Korea under the Hazardous Waste (Regulation of Exports and Imports) Act 1989.

On 16 August 2016, Beverich Holdings withdrew its application for review.

CMA Ecocycle Pty Ltd v Minister for the Environment, Woodside Energy Ltd (AAT2017/1876)

On 31 March 2017, CMA Ecocycle applied to the Administrative Appeals Tribunal for review of the delegate’s decision to grant Woodside Energy Ltd a special export permit to export up to 600 tonnes of spent PURASPEC absorbent to Switzerland for recovery.

On 1 June 2017, CMA Ecocycle withdrew its application for review.

Denman v Department of the Environment (AAT2015/4928)

On 29 September 2015, Mr Denman applied to the Administrative Appeals Tribunal for merits review of a freedom of information access decision relating to obtaining copies of subcontracts and conflict of interest declarations under a contract for an expert assessment process.

On 25 November 2016, the Tribunal dismissed the application for review.

Harris v Minister for the Environment (VID768/2016)

On 7 July 2016, Mr Harris filed proceedings in the Federal Court challenging a request to refer under the EPBC Act the proposed large-scale clearing on his property, Kingvale Station.

On 3 February 2017, the Court discontinued the proceedings.

Humane Society International Inc v Department of the Environment (AAT2016/5197)

On 20 October 2016, the Humane Society International applied to the Administrative Appeals Tribunal for review of the Department’s decision not to disclose documents under the Freedom of Information Act 1982.

The matter is yet to be listed for final determination.

Huon Aquaculture Group Ltd and Ors v Secretary, Department of Primary Industries, Parks, Water and Environment and Ors (TAD4/2017) and a related matter (TAD19/2017)

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On 6 February 2017, Huon Aquaculture filed an application in the Federal Court against several Tasmanian agencies and the Minister. The application concerns a decision that salmon farming activities in Macquarie Harbour would not be a controlled action if they were undertaken in a particular manner.

On 6 June 2017, Huon Aquaculture filed an application for declaratory relief against Tassal Operations, Aquatas and the Director of the Tasmanian Environment Protection Authority. The Minister intervened in these proceedings.

The matters are yet to be listed for final determination.

Jim’s Insulation v Commonwealth (26/2016)

This matter in the District Court of Queensland relates to alleged unpaid Home Insulation Program payments.

The matter is yet to be listed for final determination.

Krajniw v Greg Hunt, Federal Minister for the Environment (QUD58/2017)

On 10 February 2017, Mr Tony Krajniw filed an application in the Federal Court seeking an extension of time and leave to appeal the judgment of Justice Collier delivered on 25 February 2016. Mr Krajniw’s primary application sought injunctions and orders under section 475 of the EPBC Act and section 39B(1A)(c) of the Judiciary Act 1903 against the former Minister and nine other respondents.

On 2 May 2017, the Court dismissed the application as having no reasonable prospect of success and ordered that Mr Krajniw pay the costs of the respondents.

Peacock v Commonwealth (QUD144/2016) and Harvey v Commonwealth (QUD252/2016)

This is a claim in the Federal Court for losses incurred as a result of the early termination of the Home Insulation program.

This matter has been discontinued by consent of the parties.

Penna v Department of the Environment (AAT2016/3634)

On 14 July 2016, Mr Penna applied to the Administrative Appeals Tribunal for a review of a decision of the Information Commissioner made on 8 June 2016. The decision subject to review had affirmed the Department’s prior decision not to disclose documents related to an investigation into a complaint submitted by Mr Penna.

On 22 August 2016, Mr Penna withdrew his application for review.

Roo-Roofing Pty Ltd and Matsuh Pty Ltd v Commonwealth of Australia (SCI03382/2015)

This is a class action claim in the Victorian Supreme Court resulting from early termination of the Home Insulation Program. The claims include breach of contract, negligent misrepresentation and unconscionable conduct.

The matter is yet to be listed for final determination.

Save Beeliar Wetlands (Inc) v Commissioner of Main Roads and Ors (WAD601/2016)

On 30 December 2016, Save Beeliar Wetlands applied for an injunction to stop further works on the Roe Highway Extension project because of an alleged breach of the EPBC Act. Save Beeliar Wetlands alleged that Main Roads Western Australia failed to comply with condition 7 of the EPBC Act approval concerning offsets to provide for appropriate habitat for Carnaby’s cockatoo (Calyptorhynchus latirostris) and forest red-tailed black cockatoo (Calyptorhynchus banksii naso).

On 16 February 2017, the Court dismissed the proceedings.

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Save Beeliar Wetlands (Inc) v Minister for the Environment (WAD10/2016)

On 12 January 2016, Save Beeliar Wetlands applied to the Federal Court for judicial review of the former Minister’s decision of 21 October 2015 to grant an approval under the EPBC Act for Main Roads Western Australia to construct a highway from Roe Highway to Stock Road in Western Australia (EPBC 2009/5031).

On 15 February 2017, the Court discontinued the proceedings and ordered that Save Beeliar Wetlands pay part of the Minister’s legal costs.

Spencer v Commonwealth of Australia (NSD961/2015)

On 12 June 2007, Mr Spencer, the owner of a farm in southern New South Wales, applied to the Federal Court seeking declarations that restrictions imposed on clearing vegetation on his farm (set out in the Native Vegetation Conservation Act 1997 (NSW) and the Native Vegetation Act 2003 (NSW)) constituted an acquisition of property from him other than on just terms, in furtherance of agreements between New South Wales and the Commonwealth.

Interlocutory and other matters have progressed through the Federal Court, Full Federal Court and High Court. The High Court returned the matter to the Federal Court for hearing. The Federal Court heard the matter from 24 November 2014 to 12 December 2014. On 24 July 2015, the Court dismissed Mr Spencer’s application.

On 14 August 2015, Mr Spencer filed an appeal of the decision with the Full Federal Court. The Court heard the appeal between 27 February 2017 and 1 March 2017 and has reserved judgment.

The Environment Centre Northern Territory Incorporated v Minister for the Environment (NTD3/2016)

On 15 January 2016, the Environment Centre Northern Territory applied to the Federal Court for judicial review of the decision under sections 75 and 77A of the EPBC Act that the operation of a marine supply base at Port Melville on Melville Island (Northern Territory) by Ezion Offshore Logistics Hub (Tiwi) Pty Ltd is not a controlled action provided it is undertaken in a particular manner (EPBC 2015/7510).

On 21 October 2016, the Federal Court made orders by consent quashing the delegate’s decision and remitting the matter to the Minister for reconsideration.

United Petroleum Pty Ltd v Minister for the Environment and Energy (VID548/2017)

On 25 May 2017, United Petroleum filed an application in the Federal Court challenging the validity of an infringement notice issued under the Fuel Quality Standards Act 2000 for supplying non-compliant diesel.

The matter has not yet been listed for final determination.

Western Downs Alliance Inc v Minister for the Environment and Santos Limited (NSD929/2016)

On 8 June 2016, Western Downs Alliance applied to the Federal Court for judicial review of a decision on an approval under the EPBC Act for the further development of the coal seam gas fields of the Gladstone Natural Gas Project, including up to 6100 additional coal seam gas wells and associated infrastructure, in central southern Queensland (EPBC 2012/6615).

On 9 January 2017, Western Downs Alliance filed a notice of discontinuance in the Federal Court.

Whittington (as Secretary of the Department of Primary Industries, Parks, Water and Environment and as Director of National Parks and Wildlife) v Tasmanian Aboriginal Centre Incorporated (TAD9/2016)

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On 22 March 2016, Mr Whittington filed a notice of appeal of a Federal Court decision handed down on 1 March 2016 that the proposed opening and management of tracks in the Tarkine area of Tasmania would have significant impact on the national heritage values under the EPBC Act.

On 28 April 2016, the Commonwealth was granted leave to intervene in this appeal, to assist the Full Federal Court with the interpretation of the EPBC Act.

The Full Federal Court heard the matter on 22 and 23 August 2016. On 12 October 2016, the Court ordered that, if the Tasmanian Government were to push ahead with the opening of the tracks, it must either refer the opening of the tracks to the Minister under section 68 of the EPBC Act or give the Tasmanian Aboriginal Centre 30 days’ written notice of any decision not to refer.

Wilderness Society (South Australia) Inc v Department of the Environment (AAT2015/6617)

On 21 December 2015, the Wilderness Society South Australia applied to the Administrative Appeals Tribunal for review of a freedom of information access decision to provide partial access to a document regarding exploration drilling in the Great Australian Bight.

On 30 August 2016, the Administrative Appeals Tribunal affirmed the Department’s decision.

Coronial process into the death of Mr David Wood (CD 9/16)

On 12 January 2016, the death of Mr David Wood in Antarctica was referred to the Australian Capital Territory Coroner. An inquest is underway.

The matter has been listed for hearing over 10 days in September and October 2017.

Decisions by the Australian Information CommissionerHumane Society International Inc and the Department of the Environment [2016] AICmr57

On 11 September 2015, the Humane Society International applied to the Information Commissioner for review of the Department’s decision that certain information was exempt from release under the Commonwealth–state relations exemption (section 47B).

On 1 September 2016, the Information Commissioner affirmed the Department’s primary decision to exempt material under section 47B.

‘LE’ and the Department of the Environment and Energy [2017] AICmr36

On 15 June 2016, ‘LE’, a third party consulted as part of a freedom of information primary decision, applied to the Information Commissioner for review of that decision. In the primary decision ‘LE’ had submitted that the document was exempt in full pursuant to the personal privacy exemption (section 47F). The Department did not accept the submission and released the document in part under section 47F and the business affairs exemption (section 47G).

On 6 April 2017, the Information Commissioner affirmed the Department’s primary decision.

Metro Mining Limited and the Department of the Environment and Energy [2017] AICmr19

On 6 January 2016, Metro Mining applied to the Information Commissioner for review of the Department’s decision to exempt certain documents from release under the Freedom of Information Act. On 29 January 2016, the scope of the applicant’s review was confined to one document, which the Department had decided to exempt in full under the material obtained in-confidence exemption (section 45). The document was provided in confidence and treated as confidential.

On 1 March 2017, the Information Commissioner affirmed the Department’s decision to exempt the document.

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Commonwealth OmbudsmanThe Department received one notice of complaint from the Commonwealth Ombudsman in 2016–17. This matter is ongoing.

The Department managed a notice of complaint that originated in the Department of Industry, Innovation and Science but was transferred the Department as part of machinery-of-government changes in July 2016. The Ombudsman’s office determined that no further investigation was warranted, and subsequently closed the matter.

Auditor-General reportsThe Australian National Audit Office released four performance audits specific to the Department in 2016–17. The four audits were: ANAO Report No. 4 2016–17: Award of Funding under the 20 Million Trees Program, ANAO Report No. 27 2016–17: Reef Trust—Design and Implementation, ANAO Report No. 36 2016–17: Monitoring Compliance with Environment Protection and Biodiversity Conservation Act 1999 Conditions of Approval: Follow-on audit, and ANAO Report No. 45 2016–17: Replacement Antarctic Vessel.

One audit, ANAO Report No. 1 2017–18: Accounting and Reporting of Australia’s Greenhouse Gas Emissions Estimates and Projections was published shortly after the end of the financial year, 10 July 2017.

Specific to the Environment portfolio’s Clean Energy Regulator, but not the Department, the ANAO released Report No. 14 2016–17: Abatement Crediting and Purchasing under the Emissions Reduction Fund.

Parliamentary committee reportsThe Department is responsible for coordinating the Government’s responses to the following Parliamentary committee reports tabled in 2016–17. We report twice yearly to the Leaders of the Government in the Senate and the House of Representatives (through the Department of the Prime Minister and Cabinet) on all outstanding Government responses to parliamentary committee reports. The President’s Report to the Senate and the Speakers' Schedule of Outstanding Government Responses are published on the Australian Parliament House website.

Senate Environment and Communications Legislation CommitteeCarbon Credits (Carbon Farming Initiative) Amendment Bill 2017 [Provisions]

On 30 March 2017, the Senate referred the Carbon Credits (Carbon Farming Initiative) Amendment Bill 2017 to the Senate Environment and Communications Legislation Committee for inquiry and report by 9 May 2017.

The Bill amends the Carbon Credits (Carbon Farming Initiative) Amendment Act 2011 in relation to the operation of the crediting element of the Emissions Reduction Fund. These amendments address implementation issues, primarily for savanna fire management projects in Northern Australia. They correct earlier drafting errors, reduce administrative burden and clarify the original intent of the Act.

The Committee tabled its report on 9 May 2017.

Senate Environment and Communications References CommitteeContinuation of construction of the Perth Freight Link in the face of significant environmental breaches

On 16 February 2017, the Senate referred this inquiry to the committee.

The committee tabled its report on 6 March 2017. 15

Response to, and lessons learnt from, recent bushfires in remote Tasmanian wilderness

On 17 March 2016, the Senate referred this inquiry to the committee. The inquiry lapsed at the dissolution of the Senate on 9 May 2016. On 13 September 2016, the Senate agreed to the committee’s recommendation that this inquiry be re-adopted in the 45th Parliament.

The committee tabled its report on 8 December 2016.

Retirement of coal-fired power stations

On 13 October 2016, the Senate referred an inquiry into the case for the planned closure of coal-fired power stations, policy mechanisms to encourage the retirement of coal-fired power stations from the National Electricity Market and policy mechanisms to provide a just transition for affected workers and communities.

The committee tabled its interim report on 28 November 2016 and its final report on 29 March 2017.

Senate Select Committee into the Resilience of Electricity Infrastructure in a Warming World

On 12 October 2016, the Senate agreed to the establishment of a new select committee to inquire into: the role of storage technologies and localised, distributed generation in giving Australia’s electricity networks the resilience to withstand the increasing severity and frequency of extreme weather events driven by global warming; recommend measures that the Australian Government and state and local governments should take to hasten the rollout of such technologies; and inquire into any other relevant matters.

The committee tabled its report Stability and affordability: forging a path to Australia’s renewable energy future on 7 April 2017.

House of Representatives Standing Committee on the Environment and EnergyInquiry into flying-fox management in the eastern states

Following a referral on 4 November 2016, the committee conducted an inquiry into the management of nationally protected flying foxes in the eastern states of Australia.

The committee tabled its report Living with fruit bats on 27 February 2017.

Joint Standing Committee on TreatiesInternational trade in endangered species—Amendments

The amendments to Appendices I and II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Johannesburg, 4 October 2016) were tabled on 15 February 2017.

The committee tabled its report on 19 June 2017.

www.aph.gov.au

Freedom of informationUnder Part II of the Freedom of Information Act 1982 the Department is required to publish certain information as part of the Information Publication Scheme. The Department’s Information Publication Scheme statement can be found on our website.

www.environment.gov.au/topics/about-us/freedom-information/information-publication-scheme

The Freedom of Information Contact Officer can be contacted at:

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Freedom of Information Contact OfficerGeneral Counsel BranchDepartment of the Environment and EnergyGPO Box 787Canberra ACT 2601Phone: (02) 6274 2098Fax: (02) 6274 2837Email: foi@environment.gov.au

Work health and safetyThe Department is committed to fulfilling its responsibilities under the Work Health and Safety Act 2011 (WHS Act) and the Safety, Rehabilitation and Compensation Act 1988 to ensure health and safety at work and to assist ill and injured workers. This section reports on initiatives, outcomes and statistics for the Department, with the exception of the Parks Australia Division. The Director of National Parks annual report covers the health and safety initiatives and outcomes specific to Parks Australia and the statistics on departmental staff seconded to it and on visitors to the parks.

Our work health and safety (WHS) policies and procedures aim to achieve best practice in health and safety management in order to reduce the social and financial cost of occupational injury and illness and improve business performance. The Department has separate WHS management systems specifically designed for the different levels of risks associated with our Canberra offices, out-posted staff, the Supervising Scientist Branch, the Australian Antarctic Division and the Parks Australia Division. We have an overarching WHS policy, a due diligence framework and a safety strategic plan.

The Department’s rehabilitation management system is the framework of processes and procedures to ensure that we can achieve our rehabilitation objectives, including keeping employment costs such as compensation as low as possible. This system is essential to establishing a healthy organisation, assessing risks, identifying and preventing hazards and successfully managing the rehabilitation of employees with injuries back into the workplace to achieve business outcomes.

Annual audits examine the system’s effectiveness and degree of integration with the Department’s normal business. The performance of our rehabilitation management system has improved significantly in the past two years. In August 2015, an audit by Comcare found 56 per cent compliance with the requirements of the Safety, Rehabilitation and Compensation Act and associated legislation. In December 2016, an audit by Konekt Pty Ltd found 81 per cent compliance. The increased compliance resulted from a focus on strengthening the frameworks and operational capacity for rehabilitation to provide for early response to minimise the incidence and severity of injury and disease/illness at work, and for rehabilitation based on the principle of work engagement during recovery. We continue to work on improving the framework of processes and procedures for the Department’s rehabilitation management system in preparation for an audit by Comcare in October 2017.

During 2016–17, we conducted a full review of the Supervising Scientist Branch’s work health and safety management system against the requirements of AS/NZS 4801. The review’s findings included that risk had not been effectively integrated across core elements of the system and that additional tools were required to support effective management of WHS in the unique operating environment of the Supervising Scientist. The branch began using iAuditor, a mobile application designed to create checklists, conduct audits and send reports on the go, to streamline the conduct and reporting of workplace inspections, including vehicles. Work undertaken since the review has improved data management and integration between core rehabilitation management system elements, including the risk register, activity safety analysis, corrective actions, incident and hazard management, and controlled documents.

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Health and safety initiatives and outcomesThe Department promotes early intervention and prevention through its health, safety and wellbeing systems, policies and programs, which focus on continuous improvement and staff wellbeing. During 2016–17, we:

developed a domestic and family violence policy and implementation framework to support staff affected by domestic and family violence. This included developing resources and training Domestic and Family Violence Contact Officers

continued to promote wellbeing initiatives and provide related information. This included work/life assistance seminars; a conference for carers on mental health of children and young people; Mental Health Week; Men’s and Women’s Health Weeks; and health and safety awareness days such as RU OK? Day, World Suicide Prevention Day and White Ribbon Day

continued to provide access to employee and manager assistance programs, resilience coaching, annual influenza vaccinations, and training for health and safety representatives and first aid officers

promoted the Workplace Contact Officer Network and provided training for all network members in mental health first aid, as well as refresher training in the contact officer role

provided mental health first aid training for interested First Aid Officers

contracted Communicorp Group to conduct a workshop and complete a desktop audit from December 2016 to January 2017 to assess the Department’s psychological risk profile

began work on a psychological health in the workplace plan incorporating the recommendations from the psychological risk assessment

began developing robust reporting on injury management

worked towards implementing the Department’s framework for using the APS’s Occupational Rehabilitation and Associated Medical Services Panel. The panel gives agencies better value for money when engaging rehabilitation and medical services. Using panel providers to treat injured employees will increase consistency and improve business outcomes across the Department.

Statistics of notifiable incidents under the Work Health and Safety Act 2011Under Schedule 2, Part 3 of the WHS Act, the Department must report details of notifiable incidents, investigations, improvement notices, prosecutions and other matters as prescribed (see Table 3.2).

Table 3.2: Incidents notified under the Work Health and Safety Act 2011, 2016–17

Type of incident Canberra workplaces

Supervising Scientist Branch

Australian Antarctic Division

Deaths that required notice under section 38

0 0 0

Serious injury or illness that required notice under section 38

0 0 5

Dangerous incidents that required notification under section 38

1 0 1

Notices given to the Department under section 191 (improvement notices)

0 0 0

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Type of incident Canberra workplaces

Supervising Scientist Branch

Australian Antarctic Division

Notices given to the Department under section 195 (prohibition notices)

0 0 0

Notices given to the Department under section 198 (non-disturbance)

0 0 0

InvestigationsThere were no provisional improvement notices issued under Part 5, Division 7, section 90 of the WHS Act in the Canberra offices, the Supervising Scientist Branch or the Australian Antarctic Division in 2016–17. The regulator, Comcare, instigated no formal investigations into the Department.

The formal investigation instigated by Comcare (within the Australian Antarctic Division) last financial year remains on foot.

Client services

Meeting service standardsThe Department’s Service Charter 2014–2016 sets out the standards of service clients can expect and how clients can give feedback on performance. The charter is available online and in hard copy—contact the Community Information Unit toll free on 1800 803 772.

www.environment.gov.au/about/publications/charter.html

In 2016–17, our Client Service Officer received two formal complaints. We received 11 other items of feedback on the standard of our service delivery, and 16 general enquiries. We received 10 messages through the Client Service inbox that were incorrectly addressed or spam.

All complaints, feedback and enquiries were forwarded to the appropriate work area for noting or for action in line with the requirements of our service charter.

The Client Service Officer can be contacted at:

Client Service Officer Department of the Environment and EnergyGPO Box 787 Canberra ACT 2601 Phone: 02 6274 2721Toll free: 1800 803 772 Fax: 02 6274 1970 Email: externalcomplaints@environment.gov.au

Parliamentary servicesThroughout 2016–17, the Department managed the parliamentary business of the portfolio, including parliamentary inquiries, Senate estimates hearings and Cabinet material. We provided advice on policies and procedures to the Minister’s office.

During 2016–17, the portfolio prepared 1655 submissions and briefs for the Minister.

The Minister received 96,012 items of correspondence in 2016–17. Of these, 63,645 were coordinated campaign correspondence that were handled by the Parliamentary Services Section (See Table 3.3).

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Table 3.3: Amount of ministerial correspondence over the past five years (excluding campaign correspondence)

Year Number of correspondence items 2012–13 47,1162013–14 24,4582014–15 51,4932015–16 27,1972016–17 32,367

Ecologically sustainable development and environmental performanceSection 516A of the EPBC Act requires the Department to report on:

how its activities accord with the principles of ecologically sustainable development. Activities include developing and implementing policies, plans, programs and legislation and the operations of the organisation

how its outcomes and corporate plan purposes, specified in relevant appropriation acts, contribute to ecologically sustainable development

the environmental impacts of its operations during the year and measures taken to minimise these impacts.

The Department has produced guidelines for Australian Government agencies to use to report on how they contribute to ecologically sustainable development. The guidelines are available on our website.

www.environment.gov.au/resource/guidelines-section-516a-reporting-environment-protection-and-biodiversity-conservation-act

Application of ecologically sustainable development principlesThe Department administers the EPBC Act, which promotes ecologically sustainable development through the conservation and ecologically sustainable use of natural resources. Examples of how we apply the principles are in Table 3.4.

Table 3.4: Examples of how the Department applies the principles of ecologically sustainable development

Principles ActivitiesIntegration principle: decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations.

The Threatened Species Strategy, which sets out the main principles for examining threatened species recovery initiatives, applies the integration principle in decision-making processes for allocating investment to achieve the greatest impact—benefiting a greater number of plants and animals. The strategy frames a set of principles under three categories: ‘science’, considering conservation status; ‘action’, considering success and immediate and future benefits; and ‘partnership’, ensuring the community is engaged with results and likely to sustain them through long-term commitment of effort. These principles align with the Threatened Species Recovery Fund guidelines.

The Department applies the integration principle in engaging with international energy forums to examine emerging issues

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Principles Activitiesthat affect access to energy in areas suffering energy poverty. This facilitates the transition to a low-emissions energy sector by, for example, increasing use of clean energy technologies and energy-efficiency measures that alleviate energy poverty.

The Supervising Scientist Branch applies the integration principle when assessing applications for mining activities in the Alligator Rivers Region, including Kakadu National Park. This includes its assessment of the rehabilitation plan and associated activities for the Ranger uranium mine, which takes into account the various long-term and short-term considerations of both the environment and the traditional communities who have lived in the region for thousands of years.

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.

The precautionary principle applies to our decisions on Commonwealth environmental water use. We base these decisions on the best available information (including local knowledge). Given the highly variable operating environment, we often need to decide without full scientific certainty of the ecological outcomes. Importantly, adaptive management (including a long-term monitoring and evaluation program) ensures knowledge improves over time.

The Supervising Scientist Branch takes a precautionary principle approach to decisions on the Ranger uranium mine. The branch has a statutory function to develop standards for environmental protection, ensuring the prevention of harm to people and the environment surrounding the mine site, including Kakadu National Park. The standards are based on the best available science and can be adjusted as further data become available through ongoing research and advances in environmental impact assessment methods.

Implementation of the Reef 2050 plan is a practical application of the precautionary principle. Recognising that climate change is a serious threat to the health of the Reef, and noting the coral bleaching and mortality that affected the Reef in 2016 and 2017, the Department is receiving advice from stakeholder and scientific bodies on further actions in the Reef 2050 plan that can be taken to protect the Reef. The plan’s scheduled review cycle ensures that its actions and targets are reviewed and updated every 5 years, informed by improved scientific understanding, diverse knowledge systems and community views. The current mid-term review provides this opportunity.

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.

The Australian Heritage Strategy supports the long-term protection of Australia’s heritage places. The strategy sets out a 10-year framework to deliver actions against three high-level outcomes: national leadership, strong partnerships and engaged communities. It delivers under the intergenerational principle by protecting Australia’s heritage so that future generations can experience and enjoy it.

The Department partners with the states and territories, through the COAG Energy Council, to promote the development and adoption of appliances and products that use less energy and produce lower greenhouse gas emissions, through the activities of the Equipment Energy Efficiency (E3)

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Principles ActivitiesProgram. The E3 Program has resulted in significant energy savings and emissions reductions to date, and will continue to complement the Government’s central policies for guiding Australia’s transition to a low-emissions economy.

The Australian Antarctic Strategy and 20 Year Action Plan, released in April 2016, sets out Australia’s Antarctic interests and the Government’s vision for Australia’s future engagement in Antarctica. Central to the strategy is Australia’s commitment to the Antarctic Treaty system, which aligns with the intergenerational principle by preserving Antarctica as a place of peace and science and establishing principles for continuing effective governance of the region. The 1991 Environmental Protocol to the Antarctic Treaty creates a comprehensive environmental protection and management regime for Antarctica, which includes a ban on mining and a rigorous environmental impact assessment process.

In helping to implement the Murray–Darling Basin Plan, the Commonwealth Environmental Water Office is investing in the long-term future of the Basin on a scale unprecedented in Australia’s history. By recovering and efficiently using the water needed for enduring river and wetland health, it is preserving the environment of the Murray–Darling Basin for future generations.

The Supervising Scientist Branch ensures that the significant cultural and environmental values of the Alligator Rivers Region remain for the benefit of future generations. It upholds the intergenerational principle through work to protect the region’s people and environment, including Kakadu National Park, from the impacts of mining uranium at Ranger mine for 10,000 years. This includes research and assessment activities to inform rehabilitation work, and environmental monitoring throughout the rehabilitation process and beyond.

Biodiversity principle:

the conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making.

One of the five criteria for assessing all Commonwealth environmental watering actions is consideration of the ecological value of the targeted asset(s).

To guide biodiversity protection in the regulation of uranium mining in the Alligator Rivers Region, the Supervising Scientist Branch carries out a comprehensive environmental monitoring and research program that both determines the region’s baseline biodiversity and ecological characteristics and provides a means of assessing potential impacts on these characteristics. The branch develops environmental protection standards, including site-specific water-quality objectives for the Ranger uranium mine. These standards are developed using environmental data collected over the last 30 years, and aim to ensure a high level of protection of the region’s biological diversity and ecological integrity.

The Department applies the biodiversity principle in implementing and revising the Australian biodiversity conservation strategy to ensure it is a robust strategic framework that sets national priorities, aligned to Australia’s international obligations, to direct national efforts to achieve healthy and resilient biodiversity and provide a basis for

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Principles Activitiesliving sustainably.

We apply the biodiversity principle in decisions relating to the delivery of Australian Government investment programs. For example, we ensured that the eligibility criteria for new funding initiatives during 2016–17 (including the Threatened Species Recovery Fund, 20 Million Trees, and Improving Your Local Parks and Environment) remained consistent with biodiversity conservation principles, policy and targets.

Valuation principle: improved valuation, pricing and incentive mechanisms should be promoted.

The valuation principle underpinned the release of the Threatened Species Prospectus and the launch of the fifth phase of Reef Trust investment. These activities focus on promoting alternative funding mechanisms to support traditional sources of funding. Harnessing investment from the private sector helps increase understanding of the costs and values associated with protecting threatened species and communities and the Great Barrier Reef. The Reef Trust has received its first offset payments and developed an offsets calculator.

The Commonwealth Environmental Water Office upholds the valuation principle by implementing the Commonwealth Environmental Water Trading Framework when trading water allocations. The framework includes a set of operating rules that ensure any water trades are competitive, transparent and informed by market assessment. This supports better outcomes through maximising the environmental benefit achieved by selling water allocations and reinvesting in the delivery of environmental water when required.

Contribution of outcomes to ecologically sustainable developmentThe Department’s role is to advise on and implement environment and energy policy to support the Government in achieving a healthy environment, strong economy and thriving community.

All departmental outcomes and corporate plan purposes contribute to ecologically sustainable development as detailed throughout this annual report, and in the annual performance statements in particular (see pages 21–143).

Operational environmental impacts and performanceThe Department is committed to ensuring that its corporate operations reflect best environmental practice in a public service agency. We are dedicated to reducing the environmental implications of our operations as far as practicable, both in urban office environments and in the remote and regional areas we are responsible for managing.

To best manage our operational environmental impact we focus on developing and implementing systems that improve the environmental performance of the agency as a whole. We value educating staff about how they can contribute to reducing the Department’s environmental impacts.

Some practices we use to manage our operational environmental impact are:

fostering a culture of environmental responsibility in the workplace, including online guidance for staff

providing training for field staff, scientists and support staff in regional and remote areas regarding sound environmental practices in Antarctica, World Heritage areas, national parks and reserves

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promoting the efficient use of energy, water, paper and other natural resources

preventing or minimising pollution and greenhouse gas emissions where possible

offering alternative waste streams to reduce the amount of waste to landfill we produce

developing management plans that identify and address environmental risks and opportunities for environmental improvement at all offices, field sites, laboratories and other departmental sites

monitoring and reporting on our environmental performance, both internally and externally.

We manage our day-to-day operational environmental performance at a local level because of the diverse nature of our operations across Australia, external territories and the Southern Ocean. Divisions and branches coordinate whole-of-department policies, initiatives and reporting where required.

The Department has an active environmental contact officer network, ECONet, which involves volunteer staff members in developing and implementing initiatives and practices to help improve the environmental performance of Canberra-based operations.

A supplementary report on the Department’s performance against environmental indicators is available on our website.

www.environment.gov.au/about-us/accountability-reporting/environmental-performance

The Australian Antarctic Division, the Supervising Scientist Branch and office-based operations in Canberra have environmental performance committees, environmental policies and environmental performance action plans that support the management of our operational environmental impact in local areas.

The operations of the Australian Antarctic Division in Australia, the Southern Ocean and Antarctica are overseen by an environmental management system. This system is certified to the international standard ISO14001:2004.

Management of human resources

Workforce profileThe Department has a diverse workforce of 2694 people carrying out activities in all states and territories, external territories and Antarctica. Of these, 1915 employees (71 per cent) are located in Canberra and 779 (29 per cent) outside Canberra.

Our workforce statistics are presented in Tables 3.5–3.9. All statistics are as at 30 June 2017.

Table 3.5: Key to job classification symbols

Symbol Job classification Salary range per annumSOH Statutory office holders, including the Secretary of the

Department, the Chief Executive of the Australian Renewable Energy Agency, and the Director of National Parks

$285,987–$639,207

SES B3

Senior Executive Service Band 3 $285,928–367,271

SES B2

Senior Executive Service Band 2 $231,894–$274,715

SES B1

Senior Executive Service Band 1—includes SES Band 1 employees and equivalents, including the Chief Scientist of

$188,488–$286,135

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Symbol Job classification Salary range per annumthe Australian Antarctic Division (classified as a Chief of Division Grade 1 employee), and the Chief Financial Officer of the Australian Renewable Energy Agency, who is a non-APS employee at a broadly equivalent level

EL 2 Executive Level Band 2—includes equivalent Expeditioner, Expeditioner Antarctic Medical Practitioner, Head Office Antarctic Medical Practitioner, Principal Legal Officer, Principal Research Scientist, Senior Principal Research Scientist, Senior Research Scientist and Senior Public Affairs Officer

$120,881–$221,877

EL 1 Executive Level Band 1—includes equivalent Expeditioner, Expeditioner Antarctic Medical Practitioner, Head Office Antarctic Medical Practitioner, Public Affairs Officer, Research Scientist and Senior Legal Officer

$102,715–$146,115

APS 6 Australian Public Service Level 6—includes equivalent Expeditioner, Legal Officer, Public Affairs Officer and Research Scientist

$78,511–$93,017

APS 5 Australian Public Service Level 5—includes equivalent Expeditioner, Public Affairs Officer and Legal Officer

$69,756–$80,144

APS 4 Australian Public Service Level 4—includes equivalent Expeditioner, Legal Officer and Public Affairs Officer

$63,942–$75,092

APS 3 Australian Public Service Level 3—includes equivalent Expeditioner, Graduate and Legal Officer

$56,717–$66,880

APS 2 Australian Public Service Level 2—includes equivalent Expeditioner

$52,847–$59,564

APS 1 Australian Public Service Level 1—includes cadet recruits and school leavers

$43,471–$49,917

Table 3.6: Job classification, gender and location

Location Gender

Classification Total

SOH

SES

B3

SES

B2

SES

B1

EL 2

EL 1

APS 6

APS 5

APS 4

APS 3

APS 2

APS 1

ACT Female

1 1 9 28 108

307

373

178

104

53 3 2 1167

Male 2 3 7 31 110

219

221

86 33 33 1 2 748

Antarctica Female

4 2 1 1 1 9

Male 2 1 5 8 5 25 46Indian Ocean

Female

1 3 1 2 2 9

Male 1 2 2 3 4 4 8 24Jervis Bay Femal

e1 1 2 3 7 14

Male 2 3 2 4 10 21New Femal 1 2 3

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Location Gender

Classification Total

SOH

SES

B3

SES

B2

SES

B1

EL 2

EL 1

APS 6

APS 5

APS 4

APS 3

APS 2

APS 1

South Wales

eMale 1 1 2

Norfolk Island

Female

1 1 1 3

Male 1 1 4 6Northern Territory

Female

1 2 7 15 15 38 13 2 43 136

Male 2 9 13 6 12 17 22 6 57 144Queensland

Female

1 2 1 1 5

Male 1 1 2South Australia

Female

1 1

Male 2 2Tasmania Femal

e1 15 28 46 33 16 10 149

Male 1 4 47 37 54 27 20 3 1 194Victoria Femal

e2 1 3

Male 3 2 5Western Australia

FemaleMale 1 1

Total   3 4 17 68 301

629

737

367

248

183

19 118

2694

Table 3.7: Location and employment type

Location Employment typeNon-ongoing Ongoing

ACT 150 1765Antarctica 55 0Indian Ocean 14 19Jervis Bay 10 25New South Wales 3 2Norfolk Island 4 5Northern Territory 159 121Queensland 0 7South Australia 1 2Tasmania 71 272Victoria 3 5

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Location Employment typeNon-ongoing Ongoing

Western Australia 0 1Totals 470 2224

Table 3.8: Full-time employees under the Public Service Act 1999

Ongoing Non-ongoing Total by genderFemale Male Subtotal Female Male Subtotal Female Male Total

Department—all other divisions

796 736 1532 71 101 172 867 837 1704

Parks Australia Division

108 135 243 31 30 61 139 165 304

Total 904 871 1775 102 131 233 1006 1002 2008Note: These statistics do not include the Director of National Parks, Australian Renewable Energy Agency (ARENA) Chief

Executive Officer and ARENA Chief Financial Officer as they are not appointed under the Public Service Act 1999.

Table 3.9: Part-time employees under the Public Service Act 1999

  Ongoing Non-ongoing Total by genderFemale Male Subtotal Female Male Subtotal Female Male Total

Department—all other divisions

321 73 394 33 21 54 354 94 448

Parks Australia Division

41 11 52 97 86 183 138 97 235

Total 362 84 446 130 107 237 492 191 683Note: These statistics do not include the Director of National Parks, ARENA Chief Executive Officer and ARENA Chief

Financial Officer as they are not appointed under the Public Service Act 1999.

Workforce planning, staff retention and turnoverWorkforce planning and support for change management were essential in helping the Department manage workforce matters in 2016–17. In particular it has supported the transition of 223 employees to our Department from the Department of Industry, Innovation and Science as part of a machinery-of-government change in September 2016. To support our employees during the transition, we:

held regular meetings with the Secretary and EL 1 and EL 2 staff

conducted regular meetings with staff affected by the change

relied on the Department’s change management framework to ensure effective coordination and communication of change

conducted a post machinery-of-government change implementation review and incorporated lessons learned into our change framework.

We improved our workforce-planning capability during 2016–17 by undertaking a workforce-mapping process to identify job families as a foundation for identifying critical roles and investigating opportunities to embed more formal workforce planning into the business-planning process.

The Department’s retention rate for ongoing employees was 84.2 per cent, compared to 83.3 per cent in 2015–16. Our overall separation rate for the financial year was 22 per cent. This figure

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includes non-ongoing employees primarily engaged to meet seasonal operational requirements of the Australian Antarctic Division and the Parks Australia Division, and separations initiated by the Department (dismissals and voluntary redundancies). Excluding these, the separation rate for ongoing employees was 10 per cent, an increase from 8 per cent in 2015–16.

Developing people and managing performanceInduction and training processes were the subject of an internal audit conducted in July 2016 which made nine recommendations on delivering a whole-of-department approach to building staff capability. Acting on the recommendations, the Department has established a capability community of practice (a departmental reference group to address workforce capability development), a capability fund (central funding for development activities) and begun scoping system improvements to support regular completion of essential e-learning programs.

The capability fund supports the capability development of SES, EL and APS staff through programs to develop leadership, management and priority core skills as identified in the current corporate plan. Since the fund commenced in January 2017, 353 participants have attended 22 training sessions provided through this fund, including leadership programs for APS 6 and EL 2 employees and a writing program tailored for APS, EL and SES employees.

The talent management program continued, with the pilot EL 2 cohort nearing the end of their first 12 months and nominations received for a new cohort. As well as the training offered through the capability fund, we continued to help employees develop their capabilities as public sector professionals through a tailored suite of core skills training programs aligned to the Department’s capability framework. In 2016–17, a total of 970 participants attended 70 in-house training programs on topics including regulation, policy development, coaching and developing people, using Microsoft products, personal effectiveness, and business skills.

The Department launched a pilot mentoring program for APS 6 and EL 1 employees. We will analyse and evaluate this in October 2017, with the intention of full implementation across the Department in 2018.

We continued to invest in e-learning programs to improve access to essential public service knowledge and skills. We launched several internal e-learning programs in 2016–17, including a financial delegations tutorial and assessments, an introduction to EMMA (an environmental systems mapping tool), and recruitment selection panel training.

As part of our holistic approach to training, the Department strongly supports professional development through tertiary study. In 2016–17, 109 employees were registered as students under our study support scheme.

In 2016, the Department undertook a comprehensive review of the performance development scheme framework. The review resulted in findings and recommendations that are designed to improve the performance of all employees and embed a high-performance culture in the Department. Based on these, we will implement a new performance framework in September 2017. It will feature regular conversations between managers and their direct reports, better alignment between the corporate plan and individual performance agreements, and a more efficient, effective and supportive process for cases of underperformance. We will support managers and employees throughout the change program, including through training for all managers in conducting more effective performance conversations.

Helping managers, through targeted training and personalised guidance, to identify and manage performance issues remained an important activity in 2016–17. We delivered information sessions to divisions under the performance development scheme framework to support the operation of the manager-one-removed process and end-of-cycle assessments. We continued to provide the Executive Board with reports on the rate of completion of performance agreements and performance ratings, highlighting any trends.

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Employment arrangements

Agency head and statutory arrangementsThe Remuneration Tribunal sets the remuneration, allowances and provisions for the Secretary of the Department in a determination made under the Remuneration Tribunal Act 1973.

The Chief Executive Officer of the Australian Renewable Energy Agency has remuneration, allowances and specified provisions set by the Remuneration Tribunal in a determination made under the Remuneration Tribunal Act 1973. The Minister for the Environment and Energy determines additional provisions for the CEO not covered by the Australian Renewable Energy Agency Act 2011. The CEO determines the remuneration and conditions for the agency’s Chief Financial Officer under a common law agreement.

The Director of National Parks has terms and conditions of appointment specified in a determination by the Remuneration Tribunal made under the Remuneration Tribunal Act 1973. The Minister for the Environment and Energy determines the total remuneration for the individual office holder within a range set by the Remuneration Tribunal.

Senior executive service employment instruments and remunerationThe Secretary determines the remuneration and conditions for SES and equivalent employees in line with the Australian Government Workplace Bargaining Policy 2015 and the Australian Public Service Commission Executive Remuneration Management policy.

The Secretary sets SES remuneration and conditions through individual determinations under section 24(1) of the Public Service Act 1999. As of 30 June 2017, there were 67 individual SES section 24(1) determinations (see Table 3.10).

The Secretary reviews salaries for individual senior executives annually following completion of the performance cycle, taking into account the work values and complexities of each role and the capabilities, contributions and performance of individuals.

Enterprise agreementThe Department’s negotiations on a new enterprise agreement continued into 2016–17. There were four bargaining meetings in 2016–17, and a total of 22 during the whole negotiation period. In a departmental ballot in October 2016, the majority of non-SES staff voted in favour of the new agreement. The new agreement came into effect on 30 November 2016 and covers 2626 employees (see Table 3.10).

The new agreement was developed in accordance with the Workplace Bargaining Policy 2015. It only contains clauses that provide entitlements, are required by legislation and are simple, clear and easy to read. Some processes and procedures that were in the previous agreement were moved into departmental policies, and the Department made a strong commitment to consult with staff on the content of the policies. The Department is progressively considering comments on the draft policies and publishing the outcomes of these considerations along with final policies as they are approved.

Individual flexibility arrangements We use individual flexibility arrangements to supplement the conditions of individual employees in exceptional circumstances. These arrangements may vary the employee’s work hours, overtime rates, penalty rates, allowances, remuneration and/or leave.

As at 30 June 2017, there were 59 individual flexibility arrangements in place in the Department, including in the Parks Australia Division, the Australian Antarctic Division and the Australian Renewable Energy Agency Division.

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Common law agreementsThe Australian Renewable Energy Agency has one common law agreement, for the Chief Financial Officer, as at 30 June 2017. There are no other common law agreements in the Department (see Table 3.10).

Australian workplace agreementsAs at 30 June 2017, the Department does not have any Australian workplace agreements.

Table 3.10: Employment arrangements

Employment arrangements staff coverage EmployeesEnterprise agreementNon-SES 2626SES 0Individual section 24(1) determinationsNon-SES 0SES 67Individual common law agreementsNon-SES 0SES 1Individual flexibility arrangementsNon-SES 59SES and equivalents 0

Performance pay The Department made no performance payments in 2016–17.

Non-salary benefits Employees can access the following non-salary benefits:

a gymnasium

airline lounge memberships (for senior executives)

an employee assistance program

annual influenza immunisations

car parking for SES employees

information technology equipment on loan for work purposes

mobile phone on loan for work

study assistance

work-related professional membership fees.

Employees can access salary sacrifice arrangements to lease a vehicle, make additional superannuation contributions, purchase a laptop, access airline lounge memberships, or for other purposes provided for in the Department’s salary sacrificing policy.

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Code of conduct and ethical standardsThe Department is committed to the Australian Public Service Values, Code of Conduct and Employment Principles and to promoting a positive workplace culture. We demonstrate this by encouraging our workforce to articulate and model appropriate behaviour and by decisively addressing incidents of workplace misconduct. The Department’s workplace behaviour and conduct framework includes code of conduct guidelines, procedures for suspected breaches of the APS Code of Conduct, our workplace behaviour policy and the public interest disclosure process. Each employee is required to acknowledge their understanding of and commitment to the APS Values, Code of Conduct and Employment Principles in their annual performance agreement. Training and support are the preferred preventive mechanisms for behaviour management. This supports the main tenets of the Department’s early intervention strategy.

DiversityThe Department remains committed to achieving a diverse workforce and an inclusive culture where people are valued for their contributions, skills and knowledge. In 2016–17, we continued to implement initiatives in our Disability Action Plan 2016–2019, Reconciliation Action Plan 2016–2019, Indigenous Employment and Capability Strategy 2016–2019 and Diversity Strategy 2013–2017.

There are staff-led networks for Aboriginal and Torres Strait Islander employees, for those with disability or caring responsibilities, and on gender equity. Deputy secretaries have ‘champion’ roles to help foster cultural diversity by promoting awareness and supporting initiatives.

In May 2017, over 40 Aboriginal and Torres Strait Islander staff met in Canberra to take part in the Indigenous staff conference. It was an opportunity for staff to connect with the senior executive, participate in professional development workshops and learn about the varied and interesting work that is underway across the Department.

We are expanding our cultural capability program to complement CORE—an Aboriginal and Torres Strait Islander cultural capability e-learning program for use across the Australian Public Service—to include a series of workshops to give staff practical advice on how to better engage with Indigenous communities and develop culturally appropriate policies and programs.

We organised on-country cultural immersion tours, facilitated by traditional owners, to strengthen reconciliation and educate staff on local Indigenous culture and the environment. Cultural immersion tours of Black Mountain and Namadgi National Park, in the Canberra region, were attended by over 85 staff, including graduates, Indigenous apprentices, and senior executives.

Since 2010, we have provided two Kevin McLeod Awards, up to the value of $10,000 each, to advance reconciliation and support the professional development of Aboriginal and Torres Strait Islander staff. In 2016–17, the Kevin McLeod Development Award funded three Aboriginal and Torres Strait Islander employees to participate in an internal APS 6 Leadership Course. The 2016–17 Kevin McLeod Reconciliation Award recipient, Ms Briony Papps, organised a cultural cool burn in south-west Victoria, enabling the transfer of traditional knowledge and skills to the Budj Bim Rangers and traditional owners.

We continued to support people with disability by delivering individual workplace adjustments for staff under the reasonable adjustment policy. We held ‘five-plus-five forums’, where staff with disability and staff with caring responsibilities shared their stories with senior leaders.

The Department continued its memberships with external organisations supporting diversity, including the Australian Network on Disability, Supply Nation and Jawun.

At 30 June 2017, the Department’s workforce (including Parks Australia) comprised:

56 per cent women (1449 employees)

7.1 per cent who identified as Aboriginal or Torres Strait Islander (192 employees, 31

77 ongoing and 115 non-ongoing)

2 per cent who identified as having a disability (55 employees)

6.8 per cent from a non-English-speaking background (184 employees).

RecruitmentThe Department participated in the Department of Human Services Indigenous Apprenticeships program, recruiting four apprentices in 2016–17. This entry-level program employs Aboriginal and Torres Strait Islander people in the Australian Public Service while they study for a Certificate IV in Government. Under the affirmative measures provision, we employed five Indigenous graduates, who started work in February 2017.

The Department applied the Australian Public Service RecruitAbility scheme to recruitment exercises, including graduate recruitment, to attract and employ people with disability. In 2016–17, we offered paid internship positions to eight university students with disability through the Australian Network on Disability’s Stepping Into program.

We ensure gender balance on SES recruitment panels. Panels are required to have four people, of whom 50 per cent are women. Where possible, panels include one person external to the public sector.

Days of significanceThe Department marked NAIDOC Week 2016 through our NAIDOC Week awards presentation and other events, including traditional basket weaving, bush tucker talks, a Red Centre walk at the Australian National Botanic Gardens, and participation in the annual Australian Public Service NAIDOC Week touch football competition.

In 2017, many of our staff participated in National Reconciliation Week events to promote reconciliation and cultural awareness, including the National Sorry Day Bridge Walk. The Department’s official launch of National Reconciliation Week involved a traditional didgeridoo performance and a presentation on the Gunditjmara people’s successful efforts to have the Budj Bim lava flow in Lake Condah, Victoria, placed on the World Heritage Tentative List. Other activities included screenings of short films, a native title talk, and guided tours of Reconciliation Place in Canberra.

To mark International Women’s Day, representatives of the Department attended breakfasts organised by the Institute of Public Administration Australia (ACT Division) and the Australian Human Resources Institute.

Disability reporting mechanismIn 1994, Australian Government departments and agencies began reporting 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. Since 2010–11, departments and agencies have no longer been required to report on these functions.

The state of the service reports and statistical bulletins are available at:

www.apsc.gov.au

The Commonwealth Disability Strategy has been superseded by the National Disability Strategy 2010–2020, which sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high-level two-yearly report tracks developments and evaluates progress against each of the strategy’s six outcome areas and presents a picture of how people with disability are faring. The first of these progress reports is available on the Department of Social Services website.

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www.dss.gov.au/disability-and-carers/programmes-services/government-international/progress-report-to-the-council-of-australian-governments-2014

Assets management

Departmental activitiesThe Department’s assets are located throughout Australia and its territories, with the majority located in the Australian Antarctic Territory and managed by the Australian Antarctic Division. During 2016–17, the division managed and maintained Australia’s Antarctic stations—Casey, Davis and Mawson—and a research station on sub-Antarctic Macquarie Island. The division has an asset management plan for each station.

Administered activities

Environmental water holdingsThe Commonwealth’s environmental water holdings managed by the Department are recorded on the respective state government water registers. The water entitlements are classified as indefinite life intangible assets and are subject to annual impairment testing in accordance with Australian Accounting Standard AASB 138 Intangible Assets.

Heritage and cultural assets—Antarctic collectionAustralia has a history of involvement with Antarctica spanning more than 100 years. Over that time the Department has accumulated a large collection of Antarctic heritage artefacts, artworks, images and objects. We have classified these items as heritage and cultural assets because of their heritage value, and have adopted appropriate curatorial and preservation polices for these assets.

www.antarctica.gov.au/environment/cultural-heritage/managing

Procurement

PurchasingThe Department undertook procurement and purchasing in 2016–17 in accordance with the principles set out in the Commonwealth Procurement Rules.1 Application of these rules is facilitated through the Department’s Accountable Authority Instructions (Secretary’s Instructions) and reinforced through other guidance materials to ensure that we:

undertake competitive, non-discriminatory procurement processes

use resources efficiently, effectively, economically and ethically

make decisions in an accountable and transparent manner.

ReportingIn 2016–17, the Department published on the AusTender website:

tender opportunities with a value of $80,000 or more

details of all contracts awarded with a value of $10,000 or more

1 An amended version of the Commonwealth Procurement Rules came into effect on 1 March 2017.

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a procurement plan providing details of expected procurements for 2016–17.

In accordance with the Department of Finance’s Resource Management Guide 403: Meeting the Senate Order on Entity Contracts, we publish the details of all contracts entered into or active during the preceding 12 months with a value of $100,000 or more.

Information on the value of contracts awarded is available on the AusTender website.

www.tenders.gov.au

Consultancy servicesThe Department engages consultants where it lacks specialist expertise or requires independent research, review or assessment. We typically engage consultants 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.

Before engaging consultants we take into account the skills and resources required for the task, the skills available internally and the cost-effectiveness of engaging external expertise. We make decisions to engage consultants in accordance with the PGPA Act and related rules, including the Commonwealth Procurement Rules.

During 2016–17, the Department entered into 228 new consultancy contracts involving total actual expenditure of $12.702 million (GST inclusive). In addition, 69 ongoing consultancy contracts were active, involving total actual expenditure of $3.117 million (GST inclusive).

Information on the value of contracts and consultancies awarded is available on the AusTender website.

www.tenders.gov.au

Exempt contractsThere were no standing offers or contracts in excess of $10,000 (GST inclusive) exempted from being published on AusTender under the Freedom of Information Act 1982.

Promoting engagement with Indigenous-owned businessesThe Department is committed to broader engagement with Indigenous-owned businesses to source goods and services across the spectrum of purchasing activities. This commitment goes beyond any specific obligation to meet procurement contract targets set out in the Commonwealth Indigenous Procurement Policy. The Department’s 2016–17 financial year results against the Australian Government’s Indigenous procurement target are published on the Department of the Prime Minister and Cabinet website.

www.pmc.gov.au/indigenous-affairs/economic-development/indigenous-procurement-policy-ipp

In 2016–17, we exceeded our financial year target of 84 contracts. Internal measures raise awareness of the importance of procuring from Indigenous businesses by cementing best practice into our standard procurement processes and systems.

Grant programs In accordance with reporting requirements set out in the Commonwealth Grants Rules and Guidelines (July 2014), information on grants the Department awarded during the period 1 July 2016 to 30 June 2017 is available on our website.

www.environment.gov.au/about-us/accountability-reporting/grants-listing

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Information relating to planned or forecast grant opportunities will be available through the new whole-of-government grants information system, GrantConnect. GrantConnect is a central platform for publishing, applying for and reporting on Commonwealth grants. This provides a single point of discovery, efficiencies in obtaining centralised grants information, and increased transparency about and accountability for the use of public resources.

www.grants.gov.au/?event=public.FO.list

In support of the Australian Government’s Streamlining Government Grants Administration Program, the Department has begun transitioning the administration of grant programs to the Department of Industry, Innovation and Science’s Business Grants Hub. The Department will retain policy ownership and overall responsibility for relevant grant programs.

Australian National Audit Office access clausesThe Department is required to report the details of any contracts that have a contract value of $100,000 or more (inclusive of GST) where the contractual terms and conditions do not provide for the Auditor-General (through the Australian National Audit Office) to have access to the contractor’s premises.

The Department generally enters into contracts using a Commonwealth form of contract (i.e. Department of Finance’s Commonwealth Contracting Suite) which contains the necessary standard access clause(s). In all other cases, the Department seeks the inclusion of an access clause(s). The inclusion of standard access clauses provide the ANAO access to various types of information held by contractors and third-party subcontractors for the purpose of audits, including access to records, information and assets directly relevant to the contract performance. The clauses do not enable access to information that is outside the scope of the specific contract.

The Department is not aware of any contract it entered into during 2016–17 that might limit the ANAO’s access for the purposes of performing an audit.

Procurement initiatives to support small businessThe Australian Government is committed to its entities sourcing at least 10 per cent of their procurement, by value, from small and medium-sized enterprises. The Department supports this commitment and the strong participation of small business in the Australian Government procurement market.

Our internal procurement practices reflect the requirements outlined in the Commonwealth Procurement Rules, including that practices not unfairly discriminate against small and medium-sized enterprises and that they provide appropriate opportunities for these enterprises to compete. In addition to raising awareness of the importance of supporting small and medium-sized enterprises wherever possible and practicable in the procurement of goods and services for the Department, our practices include:

using the Commonwealth Contracting Suite for procurements valued under $200,000

applying the Small Business Engagement Principles (outlined in the government’s Industry Innovation and Competitiveness Agenda), which include communicating in clear, simple language and presenting information in an accessible format

using electronic systems or other processes to facilitate on-time payment performance, including the use of payment cards.

Our small and medium-sized enterprise participation statistics are available on the Department of Finance website.

www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts

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The Department recognises the importance of ensuring that small businesses are paid on time. The results of the survey of Australian Government payments to small business are available on the Treasury website.

www.treasury.gov.au

Advertising and marketing expenditureThe Department did not undertake any advertising campaigns during 2016–17. Payments made during 2016–17 for the purposes of advertising and market research that exceeded the reporting threshold of $13,000 (GST inclusive) are presented in Table 3.11.

Table 3.11: Advertising and market research expenditure in excess of $13,000, 2016–17 (GST inclusive)

Agency Purpose Expenditure (GST incl)

Advertising agenciesNilMarket research organisationsJWS Research Energy communications market research $170,500Winton Sustainable Research Strategies

2016–17 EOY: Non-road spark-ignition engines and equipment market research

$15,268

Orima Research Campaign evaluation research: Green Army $18,500Woolcott Research Pty Ltd

Greenhouse and Energy Minimum Standards: Swimming pool pumps consultation regulation impact statement

$95,590

Instinct and Reason Market testing of the zoned energy rating label

$72,600

Polling organisationsNilDirect mail organisationsNilMedia advertising organisationsDentsu Mitchell Public notices: Internet display $27,134Dentsu Mitchell Energy rating labels $27,000

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