Department of the Prime Minister and Cabinet Annual Report 2015-16

Annual Report 2015–16

Annual Report 2015–16

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Assistant Secretary, Governance, Audit and Reporting, Department of the Prime Minister and Cabinet (ABN 18 108 001 191).

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ISSN 0157-8340

© Commonwealth of Australia, Department of the Prime Minister and Cabinet, 2016

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Department of the Prime Minister and Cabinet Annual Report 2015–16

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LETTER OF TRANSMITTAL

Dear Prime Minister

I am pleased to present the Annual Report of the Department of the Prime Minister and Cabinet (the department) for the year ended 30 June 2016. The report has been prepared in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and section 63 of the Public Service Act 1999, which require that you table the report in Parliament.

The annual performance statement in Part 2 of this report is prepared in accordance with paragraph 39(1)(a) PGPA Act and accurately presents the department’s performance for the 2015–16 financial year in accordance with paragraph 39(2) of the PGPA Act.

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

I certify that I am satisfied that the department has in place appropriate fraud control mechanisms that meet our needs and that comply with the PGPA Act, PGPA Rule and associated framework applying in 2015–16.

Yours sincerely

Martin Parkinson PSM 15 September 2016

cc Senator the Hon Nigel Scullion, Minister for Indigenous Affairs

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ABOUT THIS REPORT

This is the Secretary’s report to the Prime Minister for the financial year ended 30 June 2016 and a foreword from the Secretary follows on page v.

The report relates to the Department of the Prime Minister and Cabinet’s (PM&C) performance for 2015–16 against the measures outlined in the Corporate Plan, the Portfolio Budget Statements and the Portfolio Additional Estimates Statements for the same period. The report forms a primary mechanism of accountability to the Parliament of Australia in relation to services provided. It also communicates information to the community and stakeholders.

The report has been prepared in compliance with the PGPA Act 2013 and the PGPA Rule 2014 and in accordance with the Department of Finance Resource Management Guide Number 135. The compliance index on page 211 will direct you to where information required by the PGPA Act and Rule can be found in this report.

The report is available in print from 32 libraries around Australia and the online version can be accessed on the PM&C website. The report comprises six parts:

è Part 1 introduces readers to the department with a description of the portfolio.

è Part 2 contains the annual performance statements that report on how the department performed during the financial year.

è Part 3 details management and accountability processes, including corporate governance, external scrutiny, management of human resources and work health and safety, purchasing arrangements, consultancies, advertising, grants and ecologically sustainable development and environmental performance processes.

è Part 4 contains the audited financial statements for 2015–16 for the department, the Aboriginals Benefit Account and the Aboriginal and Torres Strait Islander Land Account and explanatory information.

è Part 5 comprises appendices including the Annual Reports of the Aboriginals Benefit Account, Aboriginal and Torres Strait Islander Land Account, the report of the National Australia Day Council and the Office of the Registrar of Indigenous Corporations.

è Part 6 comprises the glossaries and indexes that provide useful additional information.


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FROM THE SECRETARY

The 12 months to 30 June 2016 was a busy time for the department, with two Secretaries, two Prime Ministers in office and a general election to prepare for on 2 July 2016. In planning for, and briefing, the incoming government the department delivered on all the elements of its core purpose of advising and supporting the government of the day.

In taking up the position of Secretary in January, I wanted to build on Michael Thawley’s legacy of ‘opening doors’ across PM&C, welcoming a diverse range of experiences and giving everyone the opportunity to do their best, to free their creativity and get better outcomes in the national interest.

In addition to delivering on our core function of supporting and advising the Prime Minister, we supported the Minister for Indigenous Affairs; the Minister for Women and Minister Assisting the Prime Minister for the Public Service; the Cabinet Secretary; the Minister Assisting the Prime Minister for Counter-Terrorism; the Assistant Minister to the Prime Minister; the Assistant Minister for Cities and Digital Transformation and the Assistant Cabinet Secretary.

Women’s safety and preventing domestic and family violence are key priorities for the Australian Government. During the year the Prime Minister and the Minister for Women announced the

Photo i Dr Martin Parkinson PSM speaking to the Institute of Public Administration Australia.

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Government’s $100 million package of measures to provide safety for women and children at high risk of domestic violence as a part of the Government’s long-term response to domestic and family violence. A number of these measures are targeted to reduce Indigenous family and domestic violence.

In May I launched PM&C’s Domestic and Family Violence Policy with Rosie Batty. Rosie’s key messages were that the workplace is often the only safe place for someone affected by family violence, and that the point at which someone decides to make the break from their domestic situation is when they are at their most vulnerable. This makes it even more vital for PM&C to provide a supportive environment, for us to take time to understand domestic violence, how it affects so many, and how we support our affected colleagues and their families.

I also spoke at the Institute of Public Administration Australia (IPAA) International Women’s Day breakfast in March 2016 as a Male Champion of Change, about how the Australian Public Service (APS) must lead the way in improving gender equality in the workforce. The Minister for Women highlighted the achievements of private organisations that are creating more flexible work environments to improve gender equality in their workforces, and congratulated The Treasury, the Department of Foreign Affairs and Trade (DFAT) and the Department of Defence on their work to increase women in leadership. I am delighted about PM&C’s recommitment to the Male Champion of Change programme.

PM&C has also recommitted to its vision for a diverse and inclusive workplace that promotes individuality and where everyone is respected and celebrated. As a department, we are supporting APS wide initiatives including the Secretaries Equality and Diversity Council, the Secretaries Talent Council and the Balancing the Future: Australian Public Service Gender Equality Strategy 2016–19. We have also established the Inclusion and Diversity Committee, to work with the LGBTI Network and the Aboriginal and Torres Strait Islander Employee Network. This year we have also refreshed our Reconciliation Action Plan and launched a Disability Action Plan.

In 2015–16 the Prime Minister delivered the eighth Closing the Gap (CtG) Report to Parliament. The Report shows, as in previous years, that there have been mixed levels of success in meeting the targets set by the Council of Australian Governments in 2008. It highlights the need for all Australian governments to intensify their efforts and partner with all people to effect change. The targets focus on the areas of health, education and employment, which are recognised as significant areas of disparity between Indigenous and non-Indigenous Australians.

A new Indigenous Policy Committee of Cabinet has been established to ensure a whole of government approach to Indigenous policy decision making and programme implementation. This recognises the majority of expenditure on Aboriginal and Torres Strait Islander people is undertaken outside of PM&C.


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On 1 July 2015, the department in partnership with the Department of Finance launched the Indigenous Procurement Policy committing the Australian Government to a target of 0.5 per cent of contracts awarded to Indigenous businesses in 2015–2016. In December 2015, the Prime Minister and Leader of the Opposition appointed a Referendum Council to progress the recognition of Indigenous peoples in the Constitution.

On 21 June 2016, the Prime Minister handed over the title deeds to the Kenbi Aboriginal Land Trust. Settlement of the land claim will realise the land’s usability, capitalising on the economic development opportunities of Territory Freehold title and its proximity to Darwin.

A number of national priorities have led to the implementation of new areas of focus within PM&C:

è The department supported the establishment of the Digital Transformation Office (DTO) as an Executive Agency in the Communications portfolio in July 2015 to improve digital services from government and bring together experts from across the public service. The DTO transferred to the Prime Minister and Cabinet portfolio on 21 September 2015.

è In November 2015, the Public Data function was established in PM&C to gather together the various facets of the Government’s digital agenda, and provide a cohesive focus to delivering on the Government’s commitment to maximise the use of public sector data across the Australian economy. The department has subsequently released several policies to coordinate whole of government approaches to public data.

Photo ii The Prime Minister, with members of the Kenbi Dancers and Kenbi Traditional Owner Raylene Singh, after handing the title deeds for the Kenbi Aboriginal land on Cox Peninsula to the traditional Aboriginal owners on 21 June 2016.

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è The Behavioural Economics Team was set up in PM&C on 1 February 2016 to build capability across the public service and drive its use in policy design by testing what works, where and in what context.

è In March 2016, we welcomed the Cities taskforce from the Department of the Environment which is setting out the opportunities and challenges that our cities face and proposed actions to address them, through the delivery of the Smart Cities Plan and City Deals.

è The department established a Redress Taskforce to advise government on the recommendations of the Royal Commission on Institutional Responses to Child Sexual Abuse focusing on redress and civil litigation.

è The Office of the Counter-Terrorism Coordinator was established in PM&C to support the Prime Minister and the Minister Assisting the Prime Minister for Counter-Terrorism.

è The first Special Adviser on Cyber Security was appointed within PM&C in May as a focal point for national leadership and advocacy on cyber security policy and to drive the implementation of the Cyber Security Strategy.

In April the Government released Australia’s Cyber Security Strategy, boosting private sector, academic and government cooperation to tackle cyber security threats facing Australia and grasp the social and economic opportunities of a secure cyberspace.

The department organised and supported the Prime Minister’s bilateral visits to New Zealand, China, Indonesia and Germany. The department also supported his attendance at COP21 in France, CHOGM in Malta, the G20 in Turkey, APEC in the Philippines and the East Asia Summit in Malaysia. The department also provided advice on major defence report and procurement including for the Future Submarines programme.

The department supported the Prime Minister in establishing a Clean Energy Innovation Fund to support emerging renewable energy technology, and the Northern Australia Infrastructure Facility — a major initiative of the White Paper on Developing Northern Australia. Support was given for the delivery of a Prime Ministerial Statement and National Innovation and Science Agenda and the Prime Minister’s participation at the 2015 United Nations Framework Convention on Climate Change (UNFCCC) Conference, at which he affirmed Australia’s 2030 emissions reduction target and membership of the Mission Innovation initiative to increase clean energy research investment. The department coordinated the Government’s agenda on expanding Australia’s cooperation with international partners on innovation, science and technology, including new agreements with Germany, Japan, New Zealand and Singapore.

The department continued to provide support and advice to the Government on the delivery of its economic plan and innovation agenda through the Federal Budget process. Support was given to the Prime Minister in developing the


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Government’s tax and superannuation package to support economic growth and national prosperity through better targeting of superannuation tax concessions and the 10 year enterprise tax plan. I am also impressed with the way PM&C discharged its traditional advisory role during preparation of the 2016–17 Budget and Portfolio Budget Statements, contributing policy ideas and proposals for Government consideration.

There were three COAG meetings during 2015–16, which were the culmination of many months of careful planning and work behind the scenes between PM&C and other government agencies.

The department supported the Prime Minister’s role in promoting the Government’s international trade agenda, including the finalisation of the TransPacific Partnership (TPP); ratification of the China Australia Free Trade Agreement (CHAFTA); work towards ambitious new agreements with India, Indonesia and the European Union; and advocacy with senior international and domestic business leaders in support of Australian trade and investment opportunities.

PM&C supported the Prime Minister’s travel to 15 countries, including bilateral visits to China, the United States, Indonesia, Japan and Germany and complemented whole of government efforts to anticipate threats and respond effectively to crises and major security events.

PM&C commenced a Functional and Efficiency Review in April 2016, and there are a number of internal

processes, including a cultural audit and a business transformation agenda, that the department will implement in the year ahead. The objective of all these processes is to enhance efficiency and effectiveness and to ensure we continue to be a high performing organisation able to meet the challenges, and exploit the opportunities, of a fluid and evolving environment.

Finally, let me pay tribute to Michael Thawley, my predecessor as Secretary, and to PM&C staff. Michael initiated wide ranging changes within PM&C and I intend to build on this solid foundation over the years ahead. Since returning to Government I have been impressed by the outstanding commitment and professionalism of the staff of the department and the broader portfolio. It is a privilege to be able to work with them to advance Australia.

Photo iii Queen’s Birthday and Australia Day 2016 Public Service Medal recipients Elizabeth Kelly PSM (Deputy Secretary, Governance), Philippa Lynch PSM (First Assistant Secretary, Government Division), Sharon McCluskey PSM (Executive Assistant, Secretary’s Office), Steven Kennedy PSM (Deputy Secretary, Innovation and Transformation) and Matthew James PSM (IAG Information and Evaluation).

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CONTENTS

Letter of transmittal ...................................................................................................... iii

About this report............................................................................................................ iv

From the Secretary ........................................................................................................ v

PART 1 Overview for 2015–16 ...........................................................................1The portfolio ...................................................................................................................... 1

The department ............................................................................................................... 3

PART 2 Annual performance statement ...........................................8Introductory statement ................................................................................................9

Analysis of performance against agency purposes .........................................9

Results ............................................................................................................................... 10

PART 3 Management and accountability ...................................48Corporate governance ............................................................................................... 49

External scrutiny ............................................................................................................52

Our people ...................................................................................................................... 54

Environmental performance .................................................................................... 63

Financial management............................................................................................... 65


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PART 4 Financial statements .........................................................................78Department of the Prime Minister and Cabinet financial statements .....................................................................................................79

Aboriginals Benefit Account financial statements ...................................................................................................149

Aboriginal and Torres Strait Islander Land Account financial statements .................................................................................................... 171

PART 5 Appendices .................................................................................................190Appendix A Aboriginals Benefit Account

Annual Report 2015–16 .................................................................. 191

Appendix B Aboriginal and Torres Strait Islander Land Account Annual Report 2015–16 ............................................................... 204

Appendix C Registrar of Indigenous Corporations Report 2015–16............................................................................... 206

Appendix D Supporting the National Australia Day Council ................209

PART 6 Glossary and indexes ................................................................... 210Compliance index ........................................................................................................ 211

List of abbreviations .................................................................................................220

Glossary of key terms ................................................................................................ 221

Alphabetical index ..................................................................................................... 222

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PART 1

Overview for 2015–16

The portfolio 1

The Department 3

THE PORTFOLIO

As at 30 June 2016, the portfolio comprised one department of state, seven non-corporate Commonwealth entities, eight corporate Commonwealth entities, and three Commonwealth companies under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The portfolio also included other statutory office holders and bodies.

Department of state è Department of the Prime Minister

and Cabinet

Non-corporate Commonwealth entities

è Australian National Audit Office

è Australian Public Service Commission

è Digital Transformation Office

è Office of National Assessments

è Office of the Commonwealth Ombudsman

è Office of the Inspector-General of Intelligence and Security

è Office of the Official Secretary to the Governor-General

Corporate Commonwealth entities

è Anindilyakwa Land Council

è Central Land Council

è Indigenous Business Australia

è Indigenous Land Corporation

è Northern Land Council

è Tiwi Land Council

è Torres Strait Regional Authority

è Wreck Bay Aboriginal Community Council

Commonwealth companies

è Aboriginal Hostels Ltd

è National Australia Day Council

è Outback Stores Pty Ltd

Part 1: Overview for 2015–16

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Other statutory office holders and bodies

è Executive Director of Township Leasing

è The Aboriginal Land Commissioner

è Registrar of Indigenous Corporations

è Independent National Security Legislation Monitor

è Defence Force Remuneration Tribunal

è Remuneration Tribunal

Our MinistersAs at 30 June 2016, the portfolio had the following Ministers and Assistant Ministers:

è The Hon Malcolm Turnbull MP, Prime Minister

è Senator the Hon Nigel Scullion, Minister for Indigenous Affairs

è Senator the Hon Michaelia Cash, Minister for Women, Minister Assisting the Prime Minister for the Public Service

è Senator the Hon Arthur Sinodinos AO, Cabinet Secretary

è The Hon Michael Keenan MP, Minister Assisting the Prime Minister for Counter Terrorism

è Senator the Hon James McGrath, Assistant Minister to the Prime Minister

è The Hon Angus Taylor MP, Assistant Minister for Cities and Digital Transformation

è The Hon Dr Peter Hendy MP, Assistant Cabinet Secretary

Photo 1.1 Djelk Women Rangers, Felina Campion and Bobbie Sheena Wilson, and Djelk Women Rangers Coordinator Tina Yeganeh meet with the Department of the Prime Minister and Cabinet Deputy Secretary, Richard Eccles, and the Assistant Secretary for the Environment Branch, Brant Smith, at the department’s Working on Country Photography Competition Exhibition Launch – the Djelk Women Rangers were the winners of this competition for 2016, and came all the way from Maningrida to receive their prize.


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THE DEPARTMENT

Role and functionsThe department advises the Prime Minister, the Cabinet, Portfolio Ministers, Assistant Ministers, and the Government as a whole and ensures government decisions are implemented. PM&C coordinates cross-portfolio efforts to advance Australia’s interests, prosperity and success. The department aims to help develop the capabilities of Aboriginal and Torres Strait Islander people to improve their living standards and wellbeing. The responsibilities of the department at 30 June 2016 are set out in the Administrative Arrangements Order as amended on 18 February 2016. Since the previous reporting period matters dealt with by PM&C were expanded to include:

è whole of government service delivery policy (administered by the Digital Transformation Office)

è public data policy and related matters

è national policy on cities

è population policy.

Structure As at 30 June 2016 PM&C had four groups: Domestic Policy; National Security and International Policy; Governance; and Indigenous Affairs. Details on each Group’s role are provided below. In addition to the National Office, the department has 33 offices and an in-community presence in another 60 locations across Australia.

Domestic Policy Group

The Domestic Policy Group supports the development of economic, environmental, social and urban policies. It coordinates the implementation of a whole of government regulatory reform agenda, and supports the Government’s priorities for gender equality and the empowerment of women. The group coordinates the Council of Australian Governments (COAG) arrangements, and provides advice and support for the Budget process. The group coordinates whole of government service delivery policy (administered by the Digital Transformation Office), public data policy and national policy on cities.


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National Security and International Policy Group

The National Security and International Policy Group provides advice on Australia’s foreign policy, trade and aid interests; the Prime Minister’s engagement with foreign counterparts and business leaders; international commemorative events; treaty matters; defence; intelligence; non-proliferation; counter-terrorism; law enforcement; information sharing; cyber policy; border security and crisis management; and coordinates the foreign affairs, trade and national security aspects of the Budget.

Governance Group

The Governance Group provides advice on legal policy, parliamentary and government matters and honours and symbols policy. In addition it provides support services to the Prime Minister, the Cabinet, Cabinet committees, and the department’s Portfolio Ministers and Assistant Ministers. The group delivers the department’s enabling and support functions and also oversees the implementation and ongoing delivery of key Government programmes, policies and initiatives.

Indigenous Affairs Group

The Indigenous Affairs Group is responsible for most Commonwealth Indigenous-specific policy and programmes. The group works with other Commonwealth departments, state and territory governments, Aboriginal and Torres Strait Islander communities and organisations, and peak bodies to achieve the Government’s priorities of getting adults into jobs, getting children into school, and making communities safer. The group includes the department’s Regional Network that works in partnership with Aboriginal and Torres Strait Islander people and communities and other stakeholders to develop and implement tailored and innovative local solutions. The PM&C Regional Network has more than 500 staff in over 90 locations across the country. These staff routinely visit more than an additional 200 communities.


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Senior executiveAs at 30 June 2016 the department’s senior executive was as follows:

Secretary Dr Martin Parkinson PSM

Associate Secretary, Indigenous Affairs Mr Andrew Tongue PSM

Deputy Secretary, Economic and G20 Sherpa Dr David Gruen

Deputy Secretary, Social Policy Ms Alison Larkins

Deputy Secretary, Innovation and Transformation Dr Steven Kennedy PSM

Deputy Secretary, Governance Ms Elizabeth Kelly PSM

Deputy Secretary, National Security Mr Allan McKinnon

Special Adviser to the Prime Minister on Cyber Security Mr Alastair MacGibbon

Commonwealth Counter-Terrorism Coordinator Mr Greg Moriarty

Deputy Secretary, Indigenous Affairs Mr Richard Eccles

Further information on the organisational structure including divisional and branch structure and responsibilities is available on www.dpmc.gov.au or by contacting the department.

Outcome and programme structureFor 2015–16 the department worked to achieve two outcomes through the delivery of seven programmes. The link between the outcome and programme framework in the Portfolio Budget Statements (PBS) and Portfolio Additional Estimates Statements (PAES) for 2015–16 and the purpose statements in the Corporate Plan 2015–19 is set out in Figure 1.1. The department’s annual performance statement outlining the delivery of this framework is at Part 2 of this report.


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http://www.dpmc.gov.au

Figure 1.1 PM&C’s outcome and programme framework

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

Programme 1.1 Prime Minister and Cabinet

Purpose

Supporting the Prime Minister as the head of the Australian Government and Cabinet

Purpose

Providing advice on major domestic policy and national security matters

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

Programme 2.1 Indigenous Advancement – Jobs, Land and Economy

Programme 2.2 Indigenous Advancement – Children and Schooling

Programme 2.3 Indigenous Advancement – Safety and Wellbeing

Programme 2.4 Indigenous Advancement – Culture and Capability

Programme 2.5 Indigenous Advancement – Remote Australian Strategies

Programme 2.6 Indigenous Advancement – Programme Support

PurposeImproving the lives of Indigenous Australians


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Photo 1.2 Flag on top of Parliament House photographed by David Foote – AUSPIC/DPS.

PART 2

Annual performance statement

Introductory statement 9

Analysis of performance against agency purposes 9

Results 10

INTRODUCTORY STATEMENT

I, as the accountable authority of the Department of the Prime Minister and Cabinet, present the 2015–16 annual performance statement of PM&C, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and PGPA Rule 2014. In my opinion, the annual performance statement is based on properly maintained records, accurately reflects the performance of the entity, and complies with subsection 39(2) of the PGPA Act.

Signed

Martin Parkinson PSM

ANALYSIS OF PERFORMANCE AGAINST AGENCY PURPOSES

There are three stated purposes 1 for the department: to support the Prime Minister as the head of the Australian Government and Cabinet; provide advice on major domestic policy and national security matters; and improve the lives of Indigenous Australians.

1 These purposes are referenced in the department’s Corporate Plan 2015–19 as ‘strategic priorities’.

The department has prepared a single performance statement articulating the achievement of the three purposes by meeting the deliverables and key performance indicators (KPIs) in the Portfolio Budget Statements for the department for 2015–16. In the case of Cities, the deliverable and KPIs are described in the Portfolio Additional Estimates Statements for the Department of the Environment for 2015–16, and in the case of Public Data, the deliverable and KPIs are described in the Portfolio Additional Estimates Statements for PM&C for 2015–16.

Part 2: Annual performance statement

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A major factor for the department in measuring performance in 2015–16 is that the majority of the deliverables and KPIs were developed in compliance with the repealed Financial Management and Accountability Act 1997. As a result there are some deficiencies in the department’s performance statement for 2015–16. For example not all of the KPIs have specific targets that meet the minimum requirements of the PGPA framework and the first ten deliverables apply to multiple purposes.

In moving towards a more mature model the department’s Corporate Plan 2016–20 provides clearly identifiable purposes, revised activities, and approaches to improve how PM&C will measure its performance going forward. A focus for PM&C will be the provision of periodic performance reporting to management throughout the 2016–17 financial year. In delivering these improvements the department will work with both the Department of Finance and the Australian National Audit Office in order to ensure that expectations are fully met.

RESULTS

During 2015–16, the department achieved its three purposes by meeting the deliverables and KPIs. This is evidenced by the delivery of a range of outcomes, through feedback received from key stakeholders, positive public comments and internal assessment of the department’s outputs.

Prime Minister and Cabinet

Policy advice and support

Deliverable: Policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries [Assistant Ministers] in key areas

Key performance indicator

High quality, relevant and timely advice and support to the Prime Minister, including to support him in his role as the Chair of the Cabinet and all committees, Portfolio Ministers and Parliamentary Secretaries [Assistant Ministers] based on an objective and thorough understanding of issues and whole of government perspective

Result

Met


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Economic

The department advised the Prime Minister on the fiscal outlook and associated fiscal strategy, as well as matters being considered through the 2015–16 Mid-Year Economic and Fiscal Outlook and 2016–17 Budget.

In supporting the Prime Minister to develop the Government’s tax and superannuation package, announced in the 2016–17 Budget, the department contributed to achieving the Government’s economic and fiscal objectives. The department’s analysis informed key components of the package, including better targeting of superannuation tax concessions and the 10-year enterprise tax plan. The department also supported the Prime Minister in his role as co-chair of the Joint Commonwealth and Tasmanian Economic Council in line with efforts to boost growth in the economy and increase employment in Tasmania.

industry, infrastructure and environment

The department advised the Prime Minister on the establishment of a Clean Energy Innovation Fund (CEIF) to support emerging renewable energy technology, as well as the decision to retain the Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA).

The department supported the Prime Minister’s launch of Infrastructure Australia’s Australian Infrastructure Plan and the establishment of the Northern Australia Infrastructure Facility (NAIF)—a major initiative of the White Paper on Developing Northern Australia.

The department worked with the Department of the Environment and Energy and the Department of Foreign Affairs and Trade to develop the Australian Antarctic Strategy and 20 Year Action Plan, setting out Australia’s vision for future engagement in Antarctica. The Antarctic Strategy was successfully launched on 27 April 2016 with a foreword from the Prime Minister.

Health

The department has supported the Prime Minister in announcing major policy including the Government’s mental health reform agenda. Through briefing and participation in various cross government forums, the department supported the development of the Australian Government responses to the Review of Medicines and Medical Devices Regulation, the Review of Mental Health Programmes and Services and recommendations from the Primary Health Care Advisory Committee. PM&C led discussions with the states and territories to finalise national legislation that regulates the cultivation of medicinal cannabis for therapeutic and scientific use. The department also monitored the response to the Zika virus outbreak and the implementation of the No Jab No Pay Vaccination Programme. PM&C worked with the Department of Health on private health insurance reform discussions with the sector and the development of a dental reform package.


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Education, employment and social services

The department worked collaboratively with the Department of Education and Training on a number of key policy issues such as developing the Jobs for Families Childcare Package, advising on higher education, schools funding arrangements and new national research initiatives as part of the National Innovation and Science Agenda. With the Department of Social Services the department supported the Prime Minister’s Community Business Partnership, which provides advice to Government on practical strategies to foster a culture of philanthropic giving, volunteering and investment. Through consultation with relevant government agencies, the department supported Commonwealth efforts to help communities recover after disasters including the November 2015 bushfires in South Australia.

Governance

The department provided advice and support on legal policy, public sector governance, the machinery of government, parliamentary and legislative matters. Advice from internal and external stakeholders confirms that we provided high quality, relevant and timely advice in the following areas:

è changes to the ministry and/or administrative arrangements in July 2015, September 2015 and February 2016

è caretaker conventions and associated practices in the context of the 2016 election

è secretariat support for the statutory review of the Public Interest Disclosure Act 2013, led by Mr Philip Moss AM, and for the Review Committee: an Independent Parliamentary Entitlements System, co-chaired by Mr John Conde AO and Mr David Tune AO PSM

è management of the Lobbying Code of Conduct and a Register of Lobbyists that listed 270 business entities and 612 lobbyists (1782 clients listed) as at 30 June 2016

è support and assistance to decision makers in the department and portfolio ministers’ offices to manage and respond to Freedom of Information requests

è Australian honours and symbols policy including support for representatives on the Council for the Order of Australia and other honours committees.

international


Advancement of the Government’s international priorities that promote Australia’s security, prosperity, international profile and influence

Result

Met


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In 2015–16, the department provided policy and programme support for the Prime Minister’s travel to 15 countries, playing a lead role in advancing Australia’s interests through enhanced engagement with these international partners.

The policy and programme support provided by the department for the Prime Minister’s visit to China in April 2016 secured particularly strong outcomes for Australia, including agreements to strengthen cooperation on innovation in clean technology, biotechnology, agribusiness and marine science, and expanding Chinese tourism to Australia. The Prime Minister was accompanied by nearly 1,000 Australian business representatives, the largest overseas business delegation in Australia’s history.

The department provided support and advice to the Prime Minister at the G20 Leaders’ Summit in Antalya, Turkey on 15–16 November 2015. We also supported the attendance of the Prime Minister’s Sherpa at four Sherpa meetings throughout the year in preparation for the Turkish Summit in 2015 and the Chinese Summit later in 2016. This advice and support helped to shape discussions at the meetings and the strong outcomes of the meetings for trade, energy, and innovation.

PM&C also facilitated and provided policy support for more than 60 meetings and phone calls the Prime Minister held with foreign leaders, including over 20 bilateral meetings with counterparts during the course of the G20, EAS, APEC leaders’ meeting, the Commonwealth Heads of Government Meeting (CHOGM) and the Paris Climate Conference.

Photo 2.1 The United States President Barack Obama meeting with the Prime Minister at APEC Philippines November 2015. Photographed by Sahlan Hayes Official Photographer to the Prime Minister.


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The department provided timely policy advice and support on strategic and major international issues affecting Australia’s interests, including: work to finalise the TransPacific Partnership (TPP); developments in the South China Sea; Australia’s continued involvement in international coalition efforts to combat ISIL/Daesh; and on the implications of the United Kingdom referendum on European Union membership.

The department helped drive implementation of the first phase of Australia’s Comprehensive Strategic Partnership with Singapore, including as co-chair of negotiations to secure closer defence cooperation, a review of the bilateral free trade agreement and a new bilateral innovation partnership. PM&C coordinated whole of government work to enhance Australia’s strategic engagement with Japan and New Zealand, including through new commitments in innovation, science and technology.

The department supported the Prime Minister in responding to the refugee crisis in Syria and Iraq, with Australia increasing its humanitarian intake by committing to resettle an additional 12,000 refugees fleeing these conflicts.

Guest of Government visits

Deliverable: Management of official visits by, and hospitality for, guests of the Government, such as Heads of State, delivery of support for major events, ceremonies and state occasions and coordination of logistical arrangements for the Prime Minister’s overseas visits


Advice and support for key stakeholders for state occasions, official visits, operations of the Prime Minister’s official establishments and former Governors-General that is timely, relevant and of high quality

Result

Met

During 2015–16, the department provided essential logistical and administrative support for a number of important international and domestic objectives for the Australian Government. This included support for the Prime Minister’s overseas visits programme, for incoming visits by Guests of the Australian Government and for a number of noteworthy State occasions. This activity serves to enhance Australia’s international relationships and to promote our national interests. The achievement of this deliverable is demonstrated through the response to the above KPI and is evidenced through feedback from key stakeholders.


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As part of the visit programme, the Prime Minister travelled to the Middle East to visit members of the Australian Defence Force serving in the region and engage in discussions with his Middle Eastern counterparts.

The Prime Minister undertook a number of significant bilateral visits overseas including to the United States of America where he met the President, the Hon Barack Obama, and to the People’s Republic of China where he met with the President, HE Mr Xi Jinping and the Premier, HE Mr Li Keqiang.

Overall, during 2015–16 the department planned, coordinated and successfully delivered eight Prime Ministerial visits overseas, to a total of 15 nations:

è Papua New Guinea (PIF) (9–10 September 2015)

è New Zealand (16–17 October 2015)

è Indonesia, Germany, Turkey (G20) and Philippines (APEC) (12–19 November 2015)

è Malaysia (EAS) (21–23 November 2015)

è Malta (CHOGM) and France (COP21) (26 November – 2 December 2015)

è Japan (17–19 December 2015)

è Middle East and United States of America (15–21 January 2016)

è China (13–16 April 2016).

As part of PM&C’s core business, the department planned, coordinated and successfully delivered 15 Guest of Government visits to Australia this year. These international dignitaries ranged from Head of State, Head of Government, Royal and ministerial level visits, including:

è Their Royal Highnesses The Prince of Wales and The Duchess of Cornwall

Photo 2.2 The Chinese Premier Li Keqiang and the Prime Minister at a Ceremonial Welcome in Beijing. Photographed by Sahlan Hayes Official Photographer to the Prime Minister.


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è the Prime Minister of New Zealand

è the President of the United Republic of Tanzania

è Ministers from Vietnam, Germany, Estonia, Finland, United Arab Emirates, Indonesia, India and Sri Lanka.

Other Guests of Government included the Chairman of the National Development and Reform Commission, Peoples’ Republic of China; President of the Asian Development Bank; and Chief Secretary for Administration, Hong Kong Special Administrative Region as well as His Excellency Professor Dr Susilo Bambang Yudhoyono AC, the former President of Indonesia.

The department managed a large number of airport facilitations (see Figure 2.1) for Heads of State and Heads of Government transiting or making private visits to Australia.

In addition to the official hospitality normally provided during Guest of Government visits, the department

planned, coordinated and successfully delivered 32 events in support of the Prime Minister, including:

è two unveiling ceremonies for memorials to those Australians whose lives were lost in the downing of Flight MH17 and the Indian Ocean Tsunami (on 26 December 2004)

è Leaders’ Retreat and three COAG Meetings

è receptions for the Australian Diamonds Netball Team, the Prime Minister’s XI versus New Zealand Cricket Match, the Prime Minister’s Christmas Receptions and Australia Day

è hospitality for the Southern Stars Cricket Team, the National Finalists for the Australian of the Year Awards 2016, the Australian and West Indies Test Cricket Teams and to welcome Senators, Members and their partners and children to the 2016 Parliamentary year.

Photo 2.3 The Indonesian President Joko Widodo with the Prime Minister at Tanah Abang market in Jakarta. Photographed by Sahlan Hayes Official Photographer to the Prime Minister.


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Figure 2.1 Summary of ceremonial and hospitality services

Services 2015–16

Prime Ministers’ 1 overseas visits

Visits made 8

Nations visited 2 15

Total duration of visits (whole or part days) 36

Official visits to Australia by guests of the Australian Government

Heads of State 1

Heads of Government 1

Ministers 8

Other guests 3 5

Total visits excluding airport facilitations 15

Airport facilitations 4 169

Events

State Funeral Services -

State Memorial Services 1

National Memorial Services 1

Additional events 30

Total events 32

Notes:1 Includes overseas visits for the then Prime Minister, the Hon Tony Abbott MP, and Prime Minister,

the Hon Malcolm Turnbull MP.2 Nations may be visited more than once in a given year.3 Guests include visitors who are royalty but are not Heads of State.4 Airport facilitation involved coordinating airport and border control procedures for, and greeting of,

Heads of State and Heads of Government on private or transit visits on their international arrival and departure. The facilitation is undertaken by part-time visit officers.


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Leadership and coordination

Deliverable: Leadership, policy coordination, monitoring and coordinated whole of government responses to Government’s decisions, policies and strategic priorities


Leadership and coordination of the national security community to promote a national security system that anticipates threats, responds effectively to crises and major security events, protects the nation and shapes the world in Australia’s interest

Result

Met


Advancement of the Government’s international priorities that promote Australia’s security, prosperity, international profile and influence

Result

Met

Crisis management

Working proactively with key national security partners, the department provided Government with practical and timely advice and options to manage crises. The department undertook a thorough review of the Australian Government Crisis Management Framework, incorporating lessons

learned from previous crises, specifically Malaysian Airlines flights MH370 and MH17 and the Ebola outbreak.

The department chaired three Crisis Arrangement Committee meetings, provided secretariat support to the Australian Government Crisis Committee and exercised key crisis arrangements. The department also provided verbal briefings to key ministerial offices in advance of the 2015–16 bushfire season. Through this coordination and leadership, the department ensured a whole of government response to national security and emergency events, including the Zika Virus outbreak, the 2016 Paris terrorist attacks, Cyclone Winston and the 2015–16 Christmas bushfires in Southern Victoria.

Cyber security

The department’s review into Australia’s cyber security arrangements resulted in a new national Cyber Security Strategy, launched by the Prime Minister in April 2016. The Strategy was developed after consultations with over 180 organisations across the public and private sector, and has been well-received by business and the international community as evidenced by positive media during and after the launch.

The department worked with business leaders to position cyber security as a topic for both public and private


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sector leaders, culminating in the Cyber Security Roundtable hosted by the Prime Minister in 2015.

The department also chaired domestic Cyber Policy and Information Management Policy Groups, provided secretariat support to meetings of the National Intelligence Coordination Committee, and contributed to other national security and intelligence forums. Stakeholder feedback indicated that the department’s work was valued.

National security and defence

The department led the annual evaluation of the Australian Intelligence Community’s performance. This evaluation provided insights into an evolving threat environment and

directly supported the Prime Minister as the Chair of the National Security Committee of Cabinet (NSC). The department worked closely with intelligence and national security agencies to improve information sharing and security, and establish a common domain for all national security agencies.

In response to continuing conflicts in Syria, Iraq and Afghanistan, the department advised the Prime Minister and the Cabinet Secretary on the NSC agenda by shaping submissions, facilitating meetings and finalising minutes. PM&C provided policy support to the Secretaries’ Committee on National Security, which meets to assess and develop policy approaches to key strategic and defence issues, including matters to be considered by NSC.

Photo 2.4 Governor-General HE General the Hon Sir Peter Cosgrove AK MC (Ret’d) meets PM&C staff at his visit to the department in September 2015.


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On counter-terrorism, the department provided support to the Prime Minister and the Minister Assisting the Prime Minister on all matters related to domestic and international counter-terrorism efforts, including during incidents of terrorism, particularly incidents in Parramatta, Paris, Brussels and Jakarta. Feedback from key stakeholders has been consistently positive. The department worked closely with Commonwealth agencies and states and territories on the Lindt café coronial inquiry and will continue to play a key role once the Coroner’s findings are handed down.

The department has provided leadership to the Government’s management of returning foreign fighters and the broad suite of counter-terrorism legislative amendments. The department has deepened the Commonwealth’s engagement with

the states and territories on counter-terrorism information sharing through the Australia-New Zealand Counter-Terrorism Committee (ANZCTC) and there has been a considerable improvement in cooperation on strategic and operational issues.

The department enhanced Australia’s regional engagement and effective national security partnerships, including supporting the Prime Minister’s meetings with key leaders and the annual AUSMIN meeting, policy development support to the Pacific Maritime Security Programme (PMSP) and the furthering of the US Force Posture Initiative (FPI) foundations. This was evidenced through internal assessment and public comment on the success of the AUSMIN outcomes, positive developments within the PMSP and FPI planning and announcements of Australia’s ongoing commitments to Afghanistan and Iraq.

Photo 2.5 At its meeting on 1 April 2016, COAG agreed a Heads of Agreement for public hospitals funding that will see the Commonwealth providing more funding for public hospital services and also preserves important parts of the existing system, while improving patient safety and the quality of services.


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PM&C also provided leadership and coordination within the national security community to anticipate evolving Defence issues for consideration by the Prime Minister and the NSC. Working closely with other agencies, the department provided analysis and practical advice to support Government decisions on the development of the 2016 Defence White Paper, as well as acquiring and sustaining Defence capabilities, including the future submarines, naval surface vessels and other major projects. The department also helped progress projects related to the Defence Estate and ICT capabilities.

The department supported whole of government consideration of the national security risks posed by foreign involvement in critical infrastructure. This included the assessment of approximately 120 Foreign Investment Review Board (FIRB) applications to determine where national security

mitigations may be required. The department’s work ensured the necessary consultation occurred with appropriate national security agencies.

The department’s central position in government was used to promote effective collaboration between agencies in the national security community on legal, diplomatic and policy aspects of the Government’s efforts to counter people smuggling, irregular arrivals and the resettlement of refugees. The department ensured that the Government had strong contingency plans in place to respond to legal challenges impacting border policy.

The department supported the Prime Minister’s attendance at major commemorative events, and worked with the Australian War Memorial to review the Official History of Australian peacekeeping, humanitarian and post–Cold War operations, Volume VI.

Photo 2.6 Troops in Iraq with the Prime Minister in January 2016. Photographed by Sergeant Hamish Paterson, courtesy of the Department of Defence.


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Coordination and support for COAG meetings

Result

Met

The department supported the Prime Minister at the COAG meetings of 23 July 2015, 11 December 2015 and 1 April 2016. The department also supported seven Senior Officials Meetings chaired by the Secretary of PM&C. Feedback provided by state and territory counterparts at all levels was that these meetings were well organised and smoothly run.


Regular, timely and collaborative communication and cooperation with other central agencies, portfolio departments and other key stakeholders

Result

Met

The department engaged regularly and collaboratively with other central agencies and departments to coordinate policy across government. This ensured policy objectives were best aligned across departments and agencies, and were supportive of government direction. The department established dedicated taskforces to:

è deliver a Prime Ministerial Statement and National Innovation and Science Agenda announced by the Prime Minister on 7 December 2015. The department participated in the Implementation Steering Committee and provided high quality and timely advice to the Prime Minister and the Cabinet Secretary for meetings of the Innovation and Science Committee of Cabinet

è deliver a whole of government approach to setting Australia’s post–2020 emissions reduction target. The Taskforce undertook extensive public consultation and worked closely with the departments of Foreign Affairs and Trade, Environment, Industry and Science and The Treasury. PM&C supported the Prime Minister’s participation at the 2015 United Nations Framework Convention on Climate Change (UNFCCC) Conference, at which he affirmed Australia’s 2030 emissions reduction target and membership of the Mission Innovation initiative to increase clean energy research investment

è coordinate the development of the Agricultural Competitiveness White Paper. The white paper, which was released on 4 July 2015, responds to the ideas, feedback and comments from thousands of interested parties—including farmers, industry, business and the community—about how we can ensure the agriculture sector remains a significant contributor to the economy and local communities. It sets out the Government’s $4 billion plan to grow Australian agriculture and strengthen the farming sector


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è coordinate a whole of government response to the growing challenges of methylamphetamine (‘Ice’) use in Australia, supporting the work of the National Ice Taskforce. The Taskforce, chaired by Mr Ken Lay APM, examined existing efforts to address Ice and identified ways to systematically improve education, health and law enforcement. The final report of the National Ice Taskforce was published in December 2015. A National Ice Action Strategy was subsequently agreed by the Council of Australian Governments (COAG) in December 2015. The secretariat to the Taskforce comprised representatives from five departments, and ran extensive consultations for the Taskforce around Australia.

The department also established the Behavioural Economics Team of the Australian Government (BETA), a joint initiative of 15 agencies across the APS. It is the Australian Government’s first central unit applying behavioural economics to improve public policy. BETA began work on 1 February 2016 and is headed by Harvard Professor Michael Hiscox. As at 30 June 2016, almost 400 APS officials had been trained in applications of behavioural insights and randomised controlled trials to public policy, with almost all participants advising that the training was valuable.

The department also worked with state and territory governments and policy agencies to:

è identify opportunities for federation reform across a range of policy areas including health, education (including preschool, schools, vocational education and training and higher education), housing and homelessness, COAG and federal financial relations. This involved consulting with stakeholders and supporting a Leaders’ Retreat on 23 July 2015, where leaders discussed ways in which the Commonwealth and states and territories could cooperate more effectively to improve services for all Australians

è secure two new national partnerships on early childhood education - the National Partnership Agreement on Universal Access to Early Childhood Education (2016 and 2017) and the National Partnership on the National Quality Agenda for Early Childhood Education and Care (2015–16 to 2017–18). All states and territories signed both national partnerships and the arrangements have now taken effect

è develop a Heads of Agreement for public hospitals funding from 1 July 2017 to 30 June 2020, which was signed by First Ministers at the 1 April 2016 COAG meeting. PM&C continued to work closely with the Department of Health, The Treasury and state and territory officials to implement the agreement


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è develop policy and settle arrangements for the national roll-out of the National Disability Insurance Scheme (NDIS). As a result the Prime Minister signed agreements for full scheme roll-out with all states and territories except for the ACT, which had already transitioned to full scheme, and Western Australia, which has signed an agreement to work towards full roll-out starting from 1 July 2017. The department also organised a workshop for Commonwealth and state and territory government officials on the critical issue of quality and safety in the NDIS

è coordinate a whole of government submission to the South Australian Nuclear Fuel Cycle Royal Commission (SANFCRC). The submission was provided on time and provided a factual basis for the SANFCRC to understand the Commonwealth’s role and the international implications of Australia potentially increasing its work in the nuclear fuel cycle

è support the delivery of country of origin labelling reforms by convening an interdepartmental committee to work through and resolve policy and implementation issues with agencies across the Australian Government.

Status of Women

Deliverable: Leadership, policy coordination, and communicating measures and benefits for women including reducing violence against women, women’s economic empowerment and opportunity and women’s leadership and status


Provide timely advice and funding to external stakeholders that provide programmes and support to promote women’s economic empowerment and opportunity, reducing violence against women, and women’s leadership and status.

Result

Met

During 2015–16, the Office for Women coordinated the delivery of a range of policies and programmes to increase the safety of women and their children, strengthen women’s economic security, and support more women into work and leadership roles.

The Women’s Safety Taskforce provided guidance to the Prime Minister and the Minister for Women on the COAG agenda on reducing violence against women, the $30 million national awareness campaign on violence against women, Stop it at the Start launched in April 2016, and the development and implementation of the $100 million Women’s Safety Package, launched in September 2015. The Taskforce also provided secretariat support for the COAG Advisory Panel


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on Violence against Women, led by Mr Ken Lay APM, which presented its third and final report to COAG in April 2016. The Office for Women continued to support the development of the Third Action Plan (2016–2019) of the National Plan to Reduce Violence against Women and their Children 2010–2022, including ensuring that Indigenous women are recognised in the Plan’s priorities and actions.

The Office for Women also supported the Government to launch the new target for women to hold 50 per cent of Government board positions overall, and men and women to each hold at least 40 per cent of positions on individual boards. This reflected a recommendation of the COAG Advisory Panel on Reducing Violence Against Women and their Children.

The Office for Women also worked with the Australian Public Service Commission

to develop the Balancing the Future: Australian Public Service Gender Equality Strategy 2016–19, and coordinated four roundtables with Australian business leaders to discuss how Government and business can work together to support more women to work and succeed in Australian workplaces.

In March 2016, the Minister for Women, Senator the Hon Michaelia Cash, launched a demonstration project developed in collaboration between the Office for Women, the Department of Employment and UnitingCare. The project selects, trains and mentors women experiencing disadvantage and provides them with employment and future career pathways within the community and aged care services of the UnitingCare network. The project also seeks to build on the G20 commitment to reduce the gender gap in workforce participation of women by 25 per cent by 2025.

Photo 2.7 The Minister for Women, Senator the Hon Michaelia Cash, at the launch of a joint project in Perth with Lin Hatfield Dodds, the then National Director of UnitingCare Australia.


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On the international level, the Office for Women coordinated and monitored several whole of government policies and strategic priorities, including the Australian National Action Plan on Women, Peace and Security 2012–2018 and the G20 Leaders’ commitment to reduce the workforce participation gap.

The department supported Australian delegates at key international forums to progress gender equality domestically and internationally including the United Nations’ Commission on the Status of Women, APEC, the World Shelters Conference and the World Assembly for Women.

The department also funded external stakeholders to promote women’s economic empowerment and opportunity, reduce violence against women, and promote women’s leadership and status. This enabled over 180 women’s organisations to bring forward the views, voices and issues of Australian women to government.

Regulatory reform

Deliverable: Development of more efficient regulation and effective regulatory management


Lead the implementation of Government deregulation reforms including delivering on the Government’s $1 billion net portfolio targets for reduction in the burden of regulation, repeal days and the regulator performance framework

Result

Met

The department continued to oversee implementation and ongoing development of the Government’s Regulatory Reform Agenda. The OECD has listed Australia as one of four countries recognised for their advanced approaches to regulatory policy and governance, based on their use of key regulatory policy tools (regulatory impact analysis, ex post evaluation and stakeholder engagement). Because of our strong regulatory environment, Australia scores better than the OECD average in 18 out of 22 sectors measured under the OECD Services Trade Restrictiveness Index.

For the second year running, the Government exceeded its commitment to reduce red tape for businesses and individuals. Decisions were taken in 2015 across Commonwealth portfolios to reduce the net cost of complying with regulations by $2.5 billion, more than double the Government’s annual


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net $1 billion target. This brings the total of Government decisions taken to reduce red tape to $4.8 billion between September 2013 and the end of December 2015.

This early achievement of the Government’s red tape reduction target provided a platform to identify opportunities to enhance the Government’s existing agenda. This assessment supported the Government‘s 2015 Spring Repeal Day announcement on 12 November 2015 that from 1 July 2016 a strengthened Regulatory Reform Agenda would integrate red tape reduction more closely with regulatory reforms that encourage innovation and competition and improve productivity and economic growth. There would also be a focus on regulatory review to ensure that frameworks remain fit for purpose.

The department continued its work with the Office of Parliamentary Counsel and Commonwealth portfolios to coordinate development of Omnibus Bills to amend or repeal unnecessary regulation. In May 2016, the Omnibus Repeal Day (Autumn 2015) Act 2016 repealed 14 Acts and amended a further 20 Acts, implementing a wide range of regulatory reforms.

The department contributed to ongoing improvement in the delivery of regulation by overseeing implementation of the Australian Government Regulator Performance Framework. PM&C also worked with portfolios to develop the first three-year programme of external reviews of regulators to provide an independent perspective of regulator performance.

PM&C continued to support regulatory policy and practice competency by delivering events for regulators and regulatory policy officers to share ideas and experiences while building professional networks. Two community of practice events for regulators and a forum for regulatory policy officers were held over 2015–16 and were well received by participants.


High quality and timely advice to departments and agencies on best practice regulation making, consistent with the requirements of the Australian Government Guide to Regulation and the COAG’s Best Practice Regulation Guide

Result

Met

Over 2015–16 the department’s Office of Best Practice Regulation (OBPR) promoted evidence-based analysis of the impacts of regulation through administering the Commonwealth Government’s best practice regulation requirements and COAG’s best practice regulation requirements.

The department conducted final assessment of regulation impact statements (RISs) prepared by agencies within the prescribed five-day limit in 52 of 54 cases in 2015–16. For COAG proposals, our average response time was nine business days, coming in under our target key performance indicator of 10 days.


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The department also released a free Massive Open Online Course (MOOC) on 1 December 2015. The MOOC, which is available at riamooc.com, develops participants’ understanding of the principles of regulatory impact analysis and RIS processes and has attracted over 500 enrolments from both Australia and overseas.

Cities

Deliverable: Host a national summit on cities agenda by April 2016

The Commonwealth Government’s Smart Cities Summit (the Summit) was held on 29 April 2016 in Melbourne. The Prime Minister, the Ministers for the Environment, Major Projects, Territories and Local Government, and Assistant Minister for Cities and Digital Transformation addressed the Summit’s 117 registered participants, representing Commonwealth, state and local governments, academia, businesses and non-government organisations.

The Summit was an opportunity for leading stakeholders and experts to help shape a shared vision for Australia’s cities. Ministers led a series of roundtables to elicit the best city-shaping ideas, including on ways the Commonwealth can work in partnership with all levels of government, leading experts, the private sector and the community to ensure our cities remain productive, accessible and liveable.

The Summit was live-streamed by the Australian Broadcasting Corporation and Sky News and generated strong interest within print and social media.

Deliverable: Develop and release a discussion paper on the cities agenda for public consultation by March 2016

The Smart Cities Plan was released for public consultation at the Smart Cities Summit on 29 April 2016. The Plan outlines the Australian Government’s vision for cities—metropolitan and regional—and how smart policy, smart investment and smart technology can deliver integrated long-term planning, targeted investment and urban policy reform.

The Australian Government has invited feedback on the Smart Cities Plan, and as of 30 June 2016, there have been 8,188 downloads of the Smart Cities Plan, and the department has received 109 public submissions from a diverse range of industries, research organisations, local councils and individuals.

City Deals are the primary tools for delivering the Smart Cities Plan, and represent a new approach to coordinating investment, planning and reform across the three levels of government in partnership with business and communities.


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Deliverable: Develop a framework for measuring the performance of Australia’s urban areas by December 2016

A framework to measure the performance of Australia’s urban areas is due for completion by December 2016. The performance framework will provide a mechanism for reporting on both the national performance of Australia’s major cities and the measurable success of City Deals.

Key performance indicators

Bilateral agreements are in place with willing jurisdictions by December 2016

Result

On track

The Government intends to enter into streamlined memoranda of understanding (MoUs) with willing jurisdictions during 2016–17 and beyond. The MoUs will identify the principles for inter-governmental collaboration and areas for action to be prioritised through City Deals. The department has commenced engagement with New South Wales, Queensland and Tasmanian Government officials.

Public data

Deliverable: Development of policies, standards and coordinated approaches to public data sets, including geocoded national address data, to support initiatives such as the commitment to open data principles

The Australian Government’s open data platforms, data.gov.au and the NationalMap, provide an easy way to find, access and reuse public data. PM&C works across governments to publish data and improve functionality based on user feedback. Guidance on integrating and publishing data is provided through toolkit.data.gov.au, as well as information on improving published data.

The department undertook several policies and initiatives to help guide and coordinate whole of government approaches to public data including:

è the Public Sector Data Management Implementation Report, 3 December 2015

è the Australian Government Public Data Policy Statement, 7 December 2015

è guidance on Data Sharing for Australian Government Entities, 29 April 2016

è DataStart, late 2015 to early 2016

è Geocoded National Address File (G-NAF), 26 February 2016.

PM&C oversaw the implementation of the Public Sector Data Management Report, the roadmap of actions to


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https://www.dpmc.gov.au/resource-centre/data/australian-government-public-data-policy-statement

https://www.dpmc.gov.au/resource-centre/data/australian-government-public-data-policy-statement

http://www.datastart.com.au/

https://www.dpmc.gov.au/public-data/geocoded-national-address-data

https://www.dpmc.gov.au/public-data/geocoded-national-address-data

address identified barriers and improve data-related practices across the Australian Public Service. This was achieved through the Secretaries Data Group and Deputy Secretaries Data Group which are the governance mechanisms for public data initiatives across Australian Government entities.

PM&C provided secretariat support for ANZLIC – the Spatial Information Council, the peak intergovernmental organisation responsible for developing policies and strategies to promote accessibility and usability of spatial information. ANZLIC’s Foundation Spatial Data Framework provided a common reference for the assembly and maintenance of Australian and New Zealand foundation level spatial data.


Progress on the increased number of Government data sets accessible online

Result

Met

The department succeeded in increasing the number of government datasets accessible online through data.gov.au and the NationalMap. As at June 2015, 6,877 datasets were accessible on data.gov.au. As at 30 June 2016, there were over 8,200 datasets accessible through data.gov.au, with over 4,400 Application Programming Interface (API) enabled resources, an increase of approximately 1,400 datasets. Progress on this KPI was previously reported through the Department of Communications Annual Report 2014–15.

Support to the Cabinet and the Federal Executive Council

Deliverable: Provision of secretariat and support services for the Cabinet, its committees and the Federal Executive Council

The department provided secretariat and support services for the Cabinet, its nine committees and the Federal Executive Council. In 2015–16 the department provided direct support to 162 Cabinet and Committee meetings. Work involved programming Cabinet business, reviewing and providing advice on Cabinet submissions, facilitating meetings, preparing minutes, and coordinating the consideration of appointments by the Cabinet. In doing this, the department recorded 926 Cabinet minutes (including appointments) and lodged 493 Cabinet documents. Reports to the Prime Minister and the Cabinet on the progress of key decisions of the Government were also provided.

The department also supported the Cabinet in updating its templates and streamlining processes, including publication of a revised Cabinet Handbook on 15 March 2016. In addition, the department improved the timeliness of the release of minutes for the Cabinet and most of its committees, supported the delivery of high quality and timely departmental briefs to the Prime Minister ahead of Cabinet meetings, and continued to explore options to improve the quality of Cabinet submissions.


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The department coordinated 12 meetings of the Secretaries’ Committee on National Security. The department provided timely administrative support to the Governor-General through 26 meetings of the Federal Executive Council at which 500 papers were considered. Further, the department assisted the National Archives of Australia in preparing the release of Cabinet documents up to 1991. We also provided advice on applications made to public service departments and agencies under the Freedom of Information Act 1982 (FOI Act) which captured Cabinet-related documentation.

All outcomes delivered by the Cabinet Division were of a high quality as evidenced by the successful running of the Cabinet process.

Services for the Prime Minister, Portfolio Ministers and Assistant Ministers

Deliverable: Provision of services for the Prime Minister, Portfolio Ministers, Parliamentary Secretaries [Assistant Ministers] and their ministerial offices

The department continued to facilitate and coordinate all correspondence, briefings and parliamentary items between its Portfolio Ministers’ Offices and the department.

In 2015–16, the department processed 297,374 items of correspondence, 354 Parliamentary Questions on Notice, and 722 Senate Estimates questions on notice including 226 items for Additional Estimates, 235 items for Budget Estimates and 261 for Supplementary Budget Estimates.

The department supported the Prime Minister, the Cabinet, Cabinet committees and its Portfolio Ministers by:

è supporting the appointment of the Honourable Malcolm Turnbull MP as the Prime Minister of Australia on 15 September 2015

è supporting changes to the Administrative Arrangements Orders made on 9 July 2015, 21 and 30 September 2015 and on 18 February 2016

è supporting the changes to the Ministry on 21 and 30 September 2015 and on 18 February 2016

è coordinating the Government’s legislation programme involving the preparation of over 230 briefs to the Assistant Minister responsible for legislation and minor policy matters, as well as issuing 16 legislation circulars to departments and agencies

è drafting 244 speeches and remarks, 562 written messages, and 197 video messages for the Prime Minister and Portfolio Ministers.

Internal monitoring and feedback processes indicate satisfactory delivery of speeches, correspondence, briefing materials and parliamentary items.


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Official establishments

Deliverable: Provision of support for the operations of the Prime Minister’s official residences and related matters and provision of entitlements to former Governors-General


Advice and support for key stakeholders for state occasions, official visits, operations of the Prime Minister’s official establishments and former Governors-General that is timely, relevant and of high quality

Result

Met

During 2015–16, the department provided administrative services including procurement, account payments, subscriptions, asset management, coordination of access to the department’s ICT Network and ICT equipment, and human resource support for the staff of the Official Residences, portfolio ministerial offices and office staff to the former Governors-General. In addition to these business as usual operational activities, the department played a lead role in establishing and supporting the new Prime Minister’s Office, seven new portfolio ministerial offices and transitioning the Prime Minister into The Lodge following completion of its refurbishment.

Improving the lives of Indigenous AustraliansThe third purpose from the 2015–19 Corporate Plan for the department is Improving the lives of Indigenous Australians. This is the overarching goal of the five Indigenous Advancement Strategy (IAS) programmes 2 referenced below. The department funds providers to deliver projects and activities that meet the objectives of the IAS. During 2015–16, the department in consultation with communities, service providers and other stakeholders revised the IAS Grant Guidelines to improve outcomes for Aboriginal and Torres Strait Islander people and communities. Further information on the IAS, the grant guidelines and the department’s role in partnering with Aboriginal and Torres Strait Islander people and communities and other stakeholders to develop and implement tailored and innovative local solutions is available on the department’s website at: https://www.dpmc.gov.au/indigenous-affairs/grants-and-funding/funding-under-ias.

2 KPIs shown are those where data is available. Areas such as social participation, organisational effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding employment, education and community safety will be disaggregated by remoteness where data is available.


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https://www.dpmc.gov.au/indigenous-affairs/grants-and-funding/funding-under-ias



Jobs, land and economy

Deliverable: Increased Indigenous employment, business and economic development

The Jobs, Land and Economy Programme increased Indigenous employment, business and economic development opportunities, supporting a further 13,694 Indigenous employment placements in 2015–16. Increased employment, business and economic development were achieved through initiatives such as:

è the Community Development Programme (CDP), which helps job seekers to gain employment in remote Australia by participating in work-like activities that build their skills and benefit local communities. Under CDP, the proportion of eligible job seekers placed in work like activities increased from 45.3 per cent (at the end of the Remote Jobs and Communities Programme) to 82.4 per cent. Reported attendance in these activities has grown from under 5 per cent in July 2015 to almost 35 per cent

Photo 2.8 Mr Edward Puruntatameri from Melville Island in the Tiwi Islands, a participant in the Community Development Programme, undertakes skills-building activities.


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è the Indigenous Procurement Policy, implemented on 1 July 2015. In the first 11 months of the policy, the Australian Government had awarded 1,070 contracts valued at $229 million to Indigenous businesses. This is around 37 times more than the Government’s total spending on Indigenous procurement in 2012–13 ($6.2 million)

è the Government’s commitment to provide up to 5,000 Aboriginal and Torres Strait Islander people with practical training for a guaranteed job through Vocational Training and Employment Centres (VTECs). This year saw 2,488 Aboriginal and Torres Strait Islander people enter into a job through this initiative, and given this success, the number of VTEC places was increased by 2,500

è the Employment Parity Initiative, which aims to provide an additional 20,000 jobs for unemployed Aboriginal and Torres Strait Islander people by 2020 and now has 11 agreements in place. To date, the employers who have signed up to the initiative have committed to 7,265 jobs for Aboriginal and Torres Strait Islander people. In 2015–16, 523 Indigenous Australians received jobs through the Employment Parity Initiative

è 240 new Indigenous cadetships, which commenced with more than 50 employers in 2015–16. This represented an investment of more than $3 million to support Indigenous Australians to complete their first undergraduate degree

è a commitment of $84.3 million to support 777 full-time equivalent ranger positions in 109 Indigenous ranger groups, together with 72 declared and 18 consultation Indigenous Protected Area projects to develop and implement environmental management plans. These plans supported Indigenous land and sea management, Indigenous employment and sustainable enterprise development in Indigenous communities

è the Indigenous Enterprise Development Programme, which provided $1.3 million to Indigenous businesses in 2015–16, leveraging private sector funding of $4.6 million. This funding supported the development of start-up ideas into enterprises and allowed existing businesses to take advantage of commercial opportunities.


Increase in the Indigenous employment and participation rates

Result

On track

Data necessary to assess performance against this KPI for 2015–16 will not be available until late 2017 when data becomes available from the 2016 Australian Bureau of Statistics (ABS) Census of Population and Housing.


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The latest available survey data to inform progress against this KPI is the 2014–15 National Aboriginal and Torres Strait Islander Social Survey (NATSISS) 3. This data shows the employment rate for Aboriginal and Torres Strait Islander people of working age increased slightly from 47.5 per cent to 48.4 per cent between 2012–13 and 2014–15. The data also shows a small increase in the participation rate, which rose from 60.1 per cent to 61.1 per cent over the same period 4. While the NATSISS data shows that this KPI was met for 2014–15, it should be noted that the slight improvement in the employment and participation rates follow a period of decline between 2008 and 2012–13.

The department continued to work closely with mainstream departments and agencies to ensure relevant policies and programmes are appropriately focused on the Closing the Gap employment target.

3 Note that due to the complexity of national data collections there is a lag between the outcome being recorded (as part of a survey or administrative collection) and publication of the data.

4 Note that this data should be treated with caution as both the employment and participation rate increases were not statistically significant. The 2012–13 Indigenous employment rate included participants in the Community Development Employment Projects (CDEP) programme. As this programme has now ceased, numbers in the programme were negligible in 2014–15. There was a non-significant increase in the Indigenous non-CDEP employment rate from 45.6 per cent in 2012–13 to 48.4 per cent in 2014–15.


Number of employment places filled with assistance by the Indigenous Advancement Strategy - Jobs, Land and the Economy programme and proportion retained to 26 weeks

Result

Met

In 2015–16 the Jobs, Land and Economy Programme (JLEP) supported 16,053 employment placements. This included 8,399 job placements for remote job seekers, both Indigenous and non-Indigenous, through the Community Development Programme (CDP) and 2,488 job placements through Vocational Training and Employment Centres (VTECs).

Tailored Assistance Employment Grants are available through the Indigenous Advancement Strategy to connect working age Aboriginal and Torres Strait Islander peoples with real and sustainable jobs, as well as support Indigenous school students’ transition from education to sustainable employment. Through both Tailored Assistance Employment Grants and employment projects funded through the 2015 Grant Round there were 3,502 job commencements for Indigenous Australians in 2015–16.

Employment placements remained steady compared to 2014–15. There was an apparent drop in overall placements, however this is accounted by:


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è the cessation of Indigenous Wage Subsidy as a discrete programme, which represents the bulk of the decline. Wage subsidies and other support for employers of Indigenous job seekers in non-remote areas are now supported through jobactive, which is administered by the Department of Employment

è fluctuations in the labour market

è a focus on providing funding for projects that support Indigenous Australians into real and sustainable jobs.

In spite of labour market fluctuations, the achievement of 26 week job outcomes has increased slightly over the last two years. Job outcomes as a proportion of employment placements increased from 44 per cent in 2014–15 to 47 per cent in 2015–16.


Proportion of job seekers in employment, education or training three months following participating in the Indigenous Advancement – Jobs, Land and the Economy programme

Result

Met

There has been an increase in the proportion of job seekers in employment, education or training three months following participating in IAS funded activities, up from 72.1 per cent in 2014–15 to 72.7 per cent in 2015–16. This was verified through post programme monitoring, surveying participants, and reporting on outcomes achieved for each project.

Photo 2.9 Crocodile Islands Rangers, Amelia Bulpulnga, Shantel Djunmuguntja, Doreen Collins and Chloe Rings conducting a shorebird survey at Rocky Point, on Milingimbi Island, Arnhem Land, Northern Territory.


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Number of Indigenous ranger jobs contracted

Result

Met

The department funded 777 full-time equivalent Indigenous ranger positions in 109 ranger groups. In addition, we funded approximately 645 full-time, part-time and casual ranger positions in Indigenous Protected Areas.

The Indigenous Ranger programme and Indigenous Protected Areas provide employment for around 2,628 Indigenous persons through 461 full-time, 494 part-time and 1,673 causal jobs. The ranger groups are coordinated by host organisations that are predominantly Indigenous entities, such as Aboriginal Corporations and Land Councils.

The funding for the rangers includes support for nationally accredited training and career pathways in land and sea management. Training is an important component of the ranger programme and is a major contributing factor to the high retention rate of Indigenous rangers.


Number of Native Title claims finalised 5

Result

On track

5 Progress on Native Title claims is influenced by the activities of various parties in the Native Title system, including the Federal Court of Australia and State and Territory Governments. Some parts of the system are funded by AGD.

National Native Title Tribunal figures indicate there were 39 native title determinations in 2015–16: 29 determinations of native title existing in part of the area and ten determinations of native title existing in the entire area.

This compares to 21 determinations in 2014–15: 10 determinations where native title was found in the entire determination area, nine determinations where native title exists in parts of the determination area, and two determinations that native title did not exist.

The department provided support for native title through funding of Native Title Representative Bodies and Service Providers and capacity building of Prescribed Bodies Corporate (PBC), who hold native title. A total of $100.94 million was available for land, native title and PBC capacity building in 2015–16. This includes funding provided under the Developing Northern Australia White Paper for PBC capacity building.

In close consultation with native title representative bodies and service providers, we developed an outcomes-based funding framework focusing on the efficient and effective performance of statutory native title functions, the development of capable and sustainable Prescribed Bodies Corporate to hold and manage native title rights and interests, and increased transparency and accountability. Outcomes-based funding will apply to native title funding agreements from 2016–17.


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Number of land claims being progressed or finalised under Commonwealth land rights legislation and number of township leases being negotiated, agreed or in place

Result

On track

The Kenbi Land Claim, lodged in 1979, has been settled with over eighty per cent of the land (approximately 52,000 hectares) being granted as Aboriginal land under the Aboriginal Land Rights Act (Northern Territory) 1976 (Land Rights Act). The balance of the land will be transferred as Territory Freehold for the benefit of the claimants. The Kenbi Land Claim has been one of the most complex land claims in the history of the Land Rights Act with two extensive hearings, three Federal Court reviews and two High Court appeals over the claim’s lifespan.

On 21 June 2016, the Prime Minister handed the title deeds for the Aboriginal land to the traditional Aboriginal owners on behalf of the Kenbi Aboriginal Land Trust. Settlement of the land claim will realise the land’s usability, capitalising on the economic development opportunities of Territory Freehold title and its proximity to Darwin.

The Wickham River Land Claim was finalised in June 2016 when the Minister for Indigenous Affairs delivered a deed of grant for approximately 50,000 hectares of Aboriginal land.

There are 42 unresolved land claims submitted under the Land Rights Act which are currently being progressed in partnership with the Aboriginal Land Commissioner, the Northern Territory Government and the Land Councils representing the claimants.

There are currently three township leases over six communities in place—three communities are on the Tiwi Islands at Wurrumiyanga, Milikapiti and Wurankuwu, and three are on the Groote Eylandt Archipelago at Angurugu, Umbakumba and Milyakburra. The department is negotiating four additional township leases using a new township leasing model, in Gunyangara, Mutitjulu, Pirlangimpi and Yarralin. The first three have been agreed in principle.

Negotiations are advanced and execution of leases is expected in late 2016 and early 2017. The new model of township leasing further empowers traditional owners and community members through stronger localised decision making about their land.

The White Paper on Developing Northern Australia was launched on 18 June 2015 by the then Prime Minister, the Hon Tony Abbott MP. The White Paper announced additional funding including for further support to native title corporations; negotiation of 99 year township leases with interested traditional owners over communities on Aboriginal land in the Northern Territory; and support for pilot reforms that broaden economic activity on land.


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In the year since the announcement, the Government has announced support for five pilots across the three jurisdictions. This includes support for traditional owners to consider options for land reform in the Kimberley, East Arnhem Land and the Torres Strait. The pilot funding has also supported Austrade to develop a business-friendly guide about land tenure in the north and to work with Indigenous proponents on investment opportunities. Negotiations with a number of communities are also well under way for 99 year township leases in the Northern Territory, and the Northern Territory Government is also developing a new Remote Minor Community Planning Scheme, through which community-led land use plans for 50 minor communities in the Northern Territory will be developed.

Children and schooling

Deliverable: Increased Indigenous school attendance and improved educational outcomes

Through the Indigenous Advancement Strategy (IAS), the department has continued to support a wide range of activities to improve school attendance and educational outcomes for Aboriginal and Torres Strait Islander children. In 2015–16, the department continued to roll out the Remote School Attendance Strategy (RSAS) and to provide tailored training to support more than 450 local employees to perform their duties effectively. The attendance strategy is

now operating in 77 schools across the Northern Territory (NT), New South Wales (NSW), Queensland, South Australia and Western Australia (up from 73 schools in 2015).

The department has supported delivery of Indigenous early childhood, parenting and family support and early learning programmes, and complementary programmes for Aboriginal and Torres Strait Islander children attending school, including nutrition programmes and homework clubs. A key aim of these activities is to improve school readiness and build positive school engagement from an early age. We have also supported young people to stay engaged with and complete school by funding scholarships, mentoring and school-based academy programmes.

The department has also supported the Prime Minister to work with states and territories on improving school attendance and attainment for Aboriginal and Torres Strait Islander students as part of the COAG standing item on Indigenous Affairs.


Indigenous school attendance rates in remote areas

Result

Met

Between 2013 and June 2016, the RSAS has achieved gains in average school attendance rates of approximately two percentage points across all schools where the strategy was delivered.


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è The 2015 attendance rate data from the MySchool website shows that of the 73 schools where the RSAS was delivered, 49 schools had a rise in attendance rate, 21 schools experienced a fall and three schools had no change in their attendance rate from Semester 1, 2013 to Semester 1, 2015.

è The 2015 attendance data from the MySchool website for Northern Territory and Queensland Government schools shows that of the 41 schools where the RSAS was delivered, 26 schools saw their attendance rate rise and 15 schools experienced a fall in their attendance rate from Term 3, 2013 to Term 3, 2015.


Year 12 or equivalent attainment – number and proportion of Indigenous young people (aged 20-24) with Year 12 or equivalent Australian Qualifications Framework (AQF) Certificate II level (or above)

Result

On track

The latest available survey data to inform progress against this KPI is the 2014–15 National Aboriginal and Torres Strait Islander Social Survey (NATSISS). Nationally, the proportion of Aboriginal and Torres Strait Islander people aged 20–24 who achieved Year 12 or equivalent increased from 45.4 per cent in 2008 to 61.5 per cent (39,900 people) in 2014–15. This indicator is used to assess progress against the COAG target to halve the gap in Year 12 attainment by 2020.


Higher education – number and proportion of Indigenous 20-64 year olds with or working towards post school qualification in AQF Certificate III level or above

Result

On track

The latest available survey data to inform progress against this KPI is the 2014–15 NATSISS. In 2014–15, 44.2 per cent of Aboriginal and Torres Strait Islander people aged 20–64 years (152,500) had or were currently studying a non-school qualification of Certificate Level III or above. This proportion has significantly increased from 40.3 per cent in 2012–13. There were a range of activities funded through the Jobs, Land and Economy Programme that supported the attainment of post school educational qualification in AQF Certificate III level or above. These activities included support for Aboriginal and Torres Strait Islander cadets, vocational training graduates (including apprentices) and school based traineeship participants. For example, in the 2015–16 financial year, 240 Indigenous Australians commenced their first undergraduate degree through the Indigenous Cadetship Support Programme.

Reforms to supplementary programmes assisting Aboriginal and Torres Strait Islander university students were developed during 2015–16. The department worked closely with universities to simplify administration and support a clearer focus on outcomes, building on the recommendations of the


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2012 Review of Higher Education Access and Outcomes for Aboriginal and Torres Strait Islander people. The Indigenous Student Success in Higher Education measure was announced in the 2016–17 Budget. The measure combines funding for the Indigenous Support Programme, Commonwealth Scholarship Programme, and tutorial assistance offered under the Indigenous Advancement Strategy into a single flexible programme. From 1 January 2017 universities will have more capacity to design their scholarships, tutorial support and other assistance to ensure Aboriginal and Torres Strait Islander students are enrolling, progressing and completing their studies in greater numbers.


Percentage of Indigenous students meeting National Minimum Standards in National Assessment Programme – Literacy and Numeracy (NAPLAN)

Result

On track

In 2015, across reading and numeracy for Years 3, 5, 7 and 9, the proportion of Aboriginal and Torres Strait Islander students achieving national minimum standards was on track in four areas (Year 7 reading, and Years 5, 7 and 9 numeracy). These results were not on track for Years 3, 5 and 9 reading and Year 3 numeracy, but were more positive than the 2014 results.

Figure 2.2 Proportion of Indigenous students at or above National Minimum Standards, 2015 NAPLAN

Reading Numeracy

Year 3 78.7% 78.2%

Year 5 73.6% 78.6%

Year 7 80.8% 82.8%

Year 9 71.7% 82.8%

Notes:KPIs shown are those where data is available. Areas such as social participation, organisational effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding employment, education and community safety will be disaggregated by remoteness where data is available.

Safety and wellbeing

Deliverable: Reduced levels of offending, violence and substance abuse 6

Under the Government’s Indigenous Advancement Strategy (IAS), the Safety and Wellbeing Programme has focused efforts on five key outcome areas:

è reduced substance misuse and harm

è improved individual and community health, wellbeing and resilience

è crime prevention, diversion and rehabilitation


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6 KPIs shown are those where data is available. Areas such as social participation, organisational effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding employment, education and community safety will be disaggregated by remoteness where data is available.

è violence reduction and victim support

è safe and functional environments.

In 2015–16, over 480 activities were funded across these five outcome areas. Funded activities include alcohol and other drug treatment services, the rollout of low aromatic fuel, social and emotional wellbeing, community night patrols, intensive case management for offenders and at-risk youth, family violence prevention legal services and other family safety activities.


Number of initiatives implemented in Indigenous communities to reduce violence

Result

Met

The department supported more than 140 activities to help reduce violence funded in 2015–16. Support for services aiming to address the underlying causes of criminal behaviour, prevent crime and divert Australians away from the criminal justice system, as well as services to help ensure Aboriginal and Torres Strait Islander victims of violence are given support to lead safe lives, have continued in 2015–16. Services funded include:

è prisoner rehabilitation, Indigenous justice activities, family violence prevention legal services, community night patrols, legal services, family safety, community links and policing

è the continuation of eight Community Engagement Police Officer positions in the NT, in partnership with the NT Police, with a ninth position established in response to need on Groote Eylandt

è the construction of a new and expanded police station in Wadeye, a new station in Angurugu and airstrip upgrades in the Torres Strait to support better remote policing.


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

Result

Met

In 2015–16, 85 organisations across Australia were funded to provide 95 culturally safe treatment, prevention, rehabilitation, education and aftercare activities for Aboriginal and Torres Strait Islander people. The department also worked with the NT Government to support remote Aboriginal communities to tackle alcohol abuse.


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Number of sites providing low aromatic fuel

Result

Met

Around 170 sites are currently stocking low aromatic fuel in parts of Queensland, Western Australia, and South Australia.

The rollout of low aromatic fuel to identified sites across Australia has continued in 2015–16. Additional fuel outlets are now stocking low aromatic fuel through voluntary conversion. The Low Aromatic Fuel Act 2013 has also been used to prohibit the sale, transport and supply of regular unleaded fuel and promote the use of low aromatic fuel in mandated areas including Katherine (and surrounding areas), Tennant Creek and Palm Island.

Culture and capability

Deliverable: Progress towards a referendum on constitutional recognition

On 7 December 2015, the Prime Minister, the Hon Malcolm Turnbull MP, and the Leader of the Opposition, the Hon Bill Shorten MP, announced the formation of the Referendum Council to conduct a national consultation process on constitutional recognition of Indigenous peoples and advise on next steps toward a referendum, including options for a referendum proposal.

The newly established Referendum Council agreed to a thorough and inclusive consultation process about recognising Indigenous peoples in the Constitution. This comprehensive process recognises the importance of taking the time to give Aboriginal and Torres Strait Islander peoples an opportunity to share their views. Consultations commenced with three significant meetings with Aboriginal and Torres Strait Islander leaders, including traditional owners and representatives of peak bodies.

The Council also progressed the framework for consulting more broadly, announcing that a concurrent series of Indigenous consultations and community-wide consultations would occur in the second half of 2016 and early 2017. The Council began work on a digital platform that will give all Australians the chance to have their say.

Separately, the department provided funding of $5 million for Reconciliation Australia’s ‘Recognise’ campaign, to continue building awareness of the importance of recognising Aboriginal and Torres Strait Islanders in the Constitution.


Release of a draft proposal for a constitutional amendment to recognise Indigenous peoples and completion of a review under the Aboriginal and Torres Strait Islander Peoples Recognition Act 2013

Result

On track


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The review under the Aboriginal and Torres Strait Islander Peoples Recognition Act 2013 was completed in September 2014. The Referendum Council will deliver its Final Report to the Prime Minister and the Leader of the Opposition following the conclusion of consultations.

Deliverable: Increase the participation of Indigenous people in Australian society through cultural activities and events, Interpreting, Healing and Broadcasting services

Seven Indigenous cultural festivals received support during 2015–16, including the Garma Festival of Traditional Culture in East Arnhem Land, NT, which received $400,000 in funding from the department. The festival attracted more than 2,500 people.

In addition to supporting major festivals, NAIDOC events, healing, and Indigenous broadcasting, the Culture and Capability programme also supported Indigenous interpreter activities. This included the National Accreditation Authority for Translators and Interpreters (NAATI). NAATI convened an Indigenous interpreter accreditation workshop in Cairns resulting in the accreditation of nine participants in a number of languages including Torres Strait Creole (Yumplatok), Kalaw Kawaw Ya (KKY) and the Meriam Mir languages. Accreditation creates employment opportunities for Aboriginal and Torres Strait Islander people as professional interpreters and supports the maintenance and use of valuable Indigenous languages.

The department also provided the Australian Rural Leadership Foundation with $1.25 million to support emerging and established leaders from remote and rural areas across Australia.


Number of cultural, broadcasting and healing projects and activities supported

Result

Met

The department supported 1,095 cultural, healing and broadcasting activities. The 2015 NAIDOC theme “We all Stand on Sacred Ground – Learn, Respect and Celebrate” emphasised Aboriginal and Torres Strait Islander peoples’ strong and continuous spiritual and cultural connection to land and sea and was chosen to highlight and celebrate the 30th anniversary of the ‘Handback’ of Uluru to its traditional owners. NAIDOC grants were provided to 463 projects. The Culture and Capability programme supported 330 discrete healing activities and projects, primarily through the Healing Foundation.

In 2015–16, the department provided $21 million to the Indigenous broadcasting sector, supporting 51 organisations and 121 licensed broadcasting services (including Remote Indigenous Broadcasting Services, Indigenous radio stations and ICTV). Two-thirds of this funding is for remote and very remote broadcasting services.


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Deliverable: Strengthen the capability of Indigenous organisations

The department implemented the Government’s Strengthening Organisational Governance policy to build the governance capability of organisations. Under the policy, organisations receiving grants of $500,000 or more (GST exclusive) in a single financial year through Outcome 2 are required to incorporate under Commonwealth legislation.

The Registrar of Indigenous Corporations, an independent statutory office holder, continued to register and regulate Indigenous organisations under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). The Registrar works with Aboriginal and Torres Strait Islander people to strengthen the capability and governance of corporations and to empower members and directors to take an active role in the management of their corporations. The Annual Report of the Registrar of Indigenous Corporations is at Appendix C.


Increased proportion of Indigenous organisations receiving significant funding from the Australian Government under this outcome which are registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006

Result

Met

The proportion of Indigenous organisations that receive significant grant funding ($500,000 or more GST exclusive) that are now registered under the CATSI Act increased to 57 per cent in 2015–16. The CATSI Act provides a robust regulatory framework and access to specialist assistance that helps improve public confidence in the security and delivery of programmes that those organisations are funded to deliver.

Remote Australia strategies

Deliverable: Invest in local, flexible solutions based on community priorities

Through the Remote Australia Strategies Programme, the department is refocussing remote funding by devolving responsibility for the programme budgets to the Regional Network. This will assist in creating genuine partnerships between government and Aboriginal and Torres Strait Islander peoples and assist with tailoring solutions to local circumstances to address the multiple dimensions of disadvantage faced by many remote Aboriginal and Torres Strait Islander communities.

Specific measures under the Remote Australia Strategies Programme to address Indigenous community investment included:


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è supporting the Murdi Paaki Regional Assembly in regional and sub-regional planning to align local investment priorities with the Indigenous Advancement Strategy and other Commonwealth and NSW Government priorities

è providing a solar powered pump to the Seisia Community Torres Strait Islander Corporation to pump ground water from a bore. The installation of the solar pump has assisted the community to produce cattle feed and provide alternative employment opportunities in cattle handling, irrigation techniques, water infrastructure, sales and horticulture

è building two group homes to provide accommodation to enable 12 female students to attend Tiwi College on Melville Island.


Number of community based Indigenous Advancement Strategies developed

Result

Met

Indigenous leaders from eight regions across Australia provided an Empowered Communities design report for Australian Government consideration in March 2015. The purpose of the Empowered Communities model is to rebalance the power between government and Indigenous Australians and empower individuals, families and communities to create better lives for

themselves. The Prime Minister wrote to the Co-Chairs of the Empowered Communities Indigenous Leadership Group on 7 December 2015, strongly supporting the place-based, whole of government approach outlined in the Empowered Communities report.

This support includes allocating $14.787 million to June 2019 under the Culture and Capability programme for Empowered Communities backbone organisations that will provide critical capability for regional implementation of this initiative. The Government is progressing the regional response for Empowered Communities before considering the institutional governance or legislative reforms also recommended in the report.

Deliverable: Invest in remote housing

The National Partnership Agreement on Remote Indigenous Housing (NPARIH) is a ten-year programme to help fix significant overcrowding, homelessness, poor housing conditions and serious housing shortages in remote Indigenous communities. Under NPARIH, the states and the Northern Territory build and upgrade remote housing, improve the management of the houses and create job opportunities for Aboriginal and Torres Strait Islander people within the NPARIH building programme.

A new Remote Housing Strategy was negotiated to replace the last two years of the NPARIH. The Remote Housing Strategy, which commenced on 1 July 2016 and will cease on 30 June 2018, provides $774 million to


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Queensland, Western Australia, South Australia and the Northern Territory to build new houses and refurbish existing houses.

The deliverables for NPARIH as set by the Council of Australian Governments (COAG) in 2008 were:

è 4,200 new houses to be delivered by 2018 with a cumulative total as at 30 June 2016 of 3,233 new builds completed

è 4,800 refurbishments to be delivered by 2014 this target was met in 2012–13, and the cumulative total as at 30 June 2016 stood at 7,350 refurbishments completed.

Funds under the Remote Housing Strategy are also for the delivery of specific outcomes set for each jurisdiction for improved property and tenancy management outcomes and engagement of Aboriginal and Torres Strait Islander employees and businesses, including through the Community Development Programme. Jurisdictions are also funded to deliver outcomes which assist Aboriginal and Torres Strait Islander people from remote communities into home ownership or to move for employment and education opportunities.


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

Result

Met

The states and the Northern Territory have advised the Commonwealth they have 10,382 standardised tenancy agreements in place at 30 June 2016.

This number represents the total number of new builds and refurbishments completed over the life of the NPARIH. Each new and refurbished house has a tenancy agreement negotiated with the new tenants upon commencing their tenancy. Jurisdictions have between four and eight weeks from the completion of works to have the tenancy agreement in place.


KPI: Number of new home owners on Indigenous land

Result

Met

During 2015–16, IBA approved 20 Remote Indigenous Home loans in remote communities, including two on Indigenous leasehold land.

Substantial policy work has been undertaken over 2015–16 to consider the effectiveness of the Indigenous Home Ownership Programme (IHOP). This included taking into account findings of the Australian National Audit Office’s assessment of the programme, which revealed various shortcomings including a lack of support for low income earners.


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PART 3

Management and accountability

Corporate governance 49

External scrutiny 52

Our people 54

Environmental performance 63

Financial management 65

CORPORATE GOVERNANCE

The department promotes a culture that encourages and supports all staff to be accountable for their actions to act with integrity, trust, honesty and respect; commit to excellence; focus on performance; and ensure the efficient and ethical management of people and resources. Elements of our corporate

governance framework include business planning, audit and assurance activities, risk management, fraud prevention and control, committees, Secretary’s Instructions, policies and guidelines and staff performance agreements and assessments.

CommitteesTo support the Secretary in the achievement of our objectives, we have a number of committees. These are outlined in Figure 3.1.

Figure 3.1 Departmental Committees

Committee Purpose

Executive Leadership Group

Establishes the strategic direction for PM&C on policy and organisational matters.

Division Heads Discusses key business issues, including business priorities, key commitments and any ongoing or emerging risks.

Audit Committee

Provides independent assurance and assistance to the Secretary and the Executive on the department’s risk, control and compliance framework, and its external accountability responsibilities.

Financial Statements Sub-Committee

Oversees, reviews, reports and advises the Audit Committee on the planning, management and finalisation of the department’s annual financial statements process and certificate of compliance process.

Operations Committee

Considers, oversees and provides advice to the Secretary and the Executive Leadership Group on matters relating to all aspects of the department’s operations including, but not limited to, financial management, workforce/human resources, security, corporate improvement, and programme management.

Part 3: Management and accountability

PAGE 49

Figure 3.1 Departmental Committees

Committee Purpose

External Budgets Sub-Committee

A sub-committee of the Operations Committee that advises the Operations Committee on the planning, management and clearance of key PM&C Commonwealth Budget related deliverables.

National Health and Safety Sub-Committee

A sub-committee of the Operations Committee that facilitates discussion and cooperation regarding work health and safety (WHS) issues and assists in developing Health and Safety Management Arrangements through consultation with all staff.

Compliance Sub-Committee

A sub-committee of the Operations Committee that supports the Operations Committee in providing assurance to the Secretary and Executive Leadership Group regarding the department’s performance and its compliance with internal and external requirements.

Inclusion & Diversity Committee

Drives and promotes inclusion and diversity initiatives and change within PM&C.

Risk managementThe department’s risk management framework is consistent with the international standard ISO 31000:2009, and outlines the department’s approach to effective risk management providing the basis for integrating risk management into the department’s business activities. Risk is considered in key decision-making activities and, in particular, when undertaking policy development and giving policy advice; in planning for and undertaking significant projects and procurements such as major events and taskforces; when outsourcing services, managing contracts and delivering programmes; and when providing secretariat and support services.

The department’s strategic risk management plan is updated annually. The 2015–16 update was informed by feedback from senior managers, outcomes from the department’s annual internal audit programme, as well as the views of the Secretary, the Executive Leadership Group, Operations Committee and Audit Committee members.

The Audit Committee recommends the plan for approval by the Executive Leadership Group and monitors the implementation of treatment strategies and tracks risks. The 2015–16 plan was approved on 10 August 2015.


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Ethical standardsThe department is committed to promoting and maintaining the standard of behaviour outlined in the APS Values and APS Code of Conduct, as set out in the Public Service Act 1999. The department is a member of the Ethics Contact Officer Network, which plays a key role in supporting the ongoing work of the Ethics Advisory Service and provides best practice advice on ethical matters.

Complaints managementTo ensure we continue to improve our services to the Australian people, we have a complaints and feedback system. In 2015–16 our complaints staff recorded and processed 89 matters. Further information is available on the department’s website.

Fraud prevention and controlThe department’s fraud control plan is designed to prevent, detect and deter fraud. It includes: a statement of the department’s policy on, and approach to, fraud control; a description of the department’s fraud control responsibilities and strategies; direction for the department’s fraud control, response and education capabilities; and a description of fraud reporting obligations both within and external to the department.

We review the fraud control plan every two years and undertake ongoing risk assessments to support the plan. As part of the review process, we conduct extensive consultations with programme risk managers and subject matter experts on a six monthly basis to evaluate existing risk trends and emerging risks and to put in place appropriate strategies to manage them.

The department’s fraud awareness strategy provides for training and regular fraud related messages to staff. The training uses a number of delivery methods including face to face, video conferencing and an e-Learning package to meet different staff training needs in national offices and across the network. We investigate allegations of fraud and criminal behaviour involving the department and organisations and individuals who receive funding and services through our programmes. Risks identified and lessons learned through investigations are reported to the Compliance sub-committee and programme and network areas.


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EXTERNAL SCRUTINY

External auditDuring 2015–16 the Australian National Audit Office reported on one portfolio-specific performance audit, The Indigenous Business Australia – Indigenous Home Ownership Programme. This report was tabled on 3 December 2015. The department was involved in four multi-portfolio performance audits on: Procurement Initiatives to Support Outcomes for Indigenous Australians, Confidentiality in Government Contracts: Senate Order for Departmental and Entity Contracts (Calendar Year 2014 Compliance), Approval and Administration of Commonwealth Funding for the East West Link Project and Implementing the Deregulation Agenda: Cutting Red Tape. These final reports were tabled on 8 July 2015, 30 September 2015, 14 December 2015 and 4 May 2016 respectively.

The Australian National Audit Office commenced an audit in February 2016 to assess whether the department has effectively established and implemented the Indigenous Advancement Strategy (IAS) to achieve the outcomes desired by government. The audit is continuing with the report due to be tabled in December 2016.

Judicial decisions and other external scrutinyThere was one decision of the Administrative Appeals Tribunal affecting the department over 2015–16: Secretary, Department of the Prime Minister and Cabinet and John Wood and Allan Asher [2015] AATA 945 (8 December 2015).

The Administrative Appeals Tribunal found that parts of an October 2011 brief from the then department’s Secretary to the then Prime Minister were not exempt under section 47C (deliberative processes) of the Freedom of Information Act 1982 (FOI Act). The Tribunal found that there is a legitimate public interest under the FOI Act, in appropriate cases, in keeping agency advice to ministers confidential. However, having regard to other factors including the passage of time, the Tribunal decided that, on balance, disclosure of the brief would not be contrary to the public interest.


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Other external scrutinyThe department commenced a review of the PM&C portfolio in 2015–16 to ensure it is best positioned to deliver the Government’s priorities. Led by Mr David Thodey, the review incorporates a Functional and Efficiency Review required as part of the Government’s broader Efficiency through Contestability Programme. The review will comprehensively assess the efficiency and effectiveness of all aspects of the department and portfolio with a particular focus on staff capability and the quality of our enabling services. The review will conclude and be provided to the Prime Minister and the Minister for Finance by September 2016.

The Joint Committee of Public Accounts and Audit (JCPAA) tabled Report 454, Early Years Quality Fund: Review of Auditor-General’s Report No. 23 (2014–15) on 22 February 2016. The report contained a recommendation directed to the department in relation to caretaker guidance provided by the department in 2013, which was addressed by adding a new section in the ‘Introduction’ of the Guidance on Caretaker Conventions (updated on the department’s website on 13 April 2016).

The Senate Finance and Public Administration References Committee tabled a report into the Commonwealth Indigenous Advancement Strategy tendering processes in March 2016. PM&C is considering the nine recommendations resulting from the Committee’s inquiry into the impact on service quality, efficiency and sustainability of the 2014 Commonwealth Indigenous Advancement Strategy (IAS) tendering processes.

Entities subject to the FOI Act are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. Information for the department, including an Agency Plan showing what information we publish, is available at www.dpmc.gov.au.


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OUR PEOPLE

PM&C recognises the essential contribution that people make to achieving PM&C’s purpose, and the importance of investing in staff capability. The PM&C People Strategy 2014–16 provided the vision to support the development of our people throughout 2015–16 with a focus on cohesion, capability and capacity.

Employment performanceAs at 30 June 2016 the department had 1,976 employees engaged in ongoing functions. This is a decrease from 2,086 employees as at 30 June 2015. Further information is provided at Figure 3.2.

We have a diverse workforce with approximately 66 per cent female representation, 58 per cent under 45 years and 15 per cent identifying as Aboriginal or Torres Strait Islander.

We have staff working right across Australia with approximately 71 per cent of staff located in Canberra and the remaining staff in other capital cities, regional and remote areas. Further information is provided in the human resources workforce profile at Figure 3.3.

Total employee expenditure for 2015–16 was $269.825 million, a decrease of $2.778 million from the previous year.

Figure 3.2 Staff distribution figures (based on headcount)

PM&C functions Number of staff at 30 June 2015

Number of staff at 30 June 2016

Ongoing functions 2,086 1,990

Inoperatives 1 129 151

Total 2,324 2,141

Notes: 1 Includes staff on paid leave greater than three months (maternity leave, long service leave, annual

leave) and staff on leave without pay (external temporary transfers, overseas travel or study) and other temporary employment in the interests of the APS.


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Figure 3.3 Workforce profile (based on substantive headcount)

Workforce profile 1 At June 2015 At June 2016

Ongoing Non-ongoing

Total Ongoing Non-ongoing

Total

Job classification

Secretary 1 0 1 1 0 1

SES Band 3 8 1 9 8 1 9

SES Band 2 30 0 30 19 1 20

SES Band 1 87 0 87 74 4 78

Executive Level 2 344 12 356 254 7 261

Executive Level 1 687 35 722 641 18 659

APS 4–6 935 105 1,040 960 53 1,013

APS 1–3 52 9 61 59 11 70

Graduate 18 0 18 30 0 30

Total 2,161 162 2,324 2,046 95 2,141

Location

ACT 1,522 101 1,624 1,467 55 1,522

NSW 97 5 102 89 4 93

NT 264 17 281 234 7 241

QLD 102 11 113 94 8 102

SA 46 9 55 41 8 49

TAS 11 0 11 8 0 8

VIC 27 0 27 26 1 27

WA 92 19 111 87 12 99

Overseas 0 0 0 0 0 0

Total 2,161 162 2,324 2,046 95 2,141

Staff age profile

Age < 25 44 13 57 53 16 69

Age 25 – 34 639 48 687 591 16 607

Age 35 – 44 601 36 637 548 16 564

Age 45 – 54 563 29 592 534 29 563

Age 55 – 64 290 34 334 289 18 307

Age 65 + 24 2 27 31 0 31

Total 2,161 162 2,324 2,046 95 2,141


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Figure 3.3 Workforce profile (based on substantive headcount)

Workforce profile 1 At June 2015 At June 2016

Ongoing Non-ongoing

Total Ongoing Non-ongoing

Total

Equal employment opportunity group participation and workplace arrangements

Female 1,451 114 1,543 1,358 64 1,422

Non-English speaking background

109 6 115 107 8 115

Aboriginal and/or Torres Strait Islander

321 25 346 303 25 328

People with a disability 74 3 77 62 2 64

Working part-time 254 24 278 268 14 282

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

Inclusion and diversity PM&C recognises the importance of an inclusive and diverse workplace. To assist in achieving this, we have appointed an overarching SES Band 3 Diversity Champion, who is supported by SES Band 2 co-champions: a Gender Champion, Indigenous Champion, and Disability and LGBTI Champions. Champions play a visible leadership role across the department and work together to achieve a cohesive and integrated approach to inclusion and diversity.

In 2015–16, the department achieved a number of priorities relating to inclusion and diversity, including the release of an Aboriginal and Torres Strait Islander Employment Strategy, Reconciliation Action Plan and the Disability Action Plan.

Aboriginal and Torres Strait Islander peoples

The department’s Reconciliation Action Plan (RAP) 2015–2018 was published in November 2015, setting out our journey towards reconciliation. We respect and celebrate the unique place Aboriginal and Torres Strait Islander peoples hold as our First Australians. The RAP focused on three key areas: Relationships, Respect and Opportunities. Further information on our achievements is available on the PM&C website or by contacting the department.


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People with disability

The National Disability Strategy 2010–20 sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. Agency level information on people with disability can be found at www.dss.gov.au.

The department’s Disability Action Plan (DAP) 2015–2017 was released in November 2015. The DAP will enable us to increase the representation of people with disability by providing a safe, accessible and supportive working environment for employees with disability. The department aims to increase disability confidence and awareness of all employees, particularly supervisors. Further information is available on the PM&C website or by contacting the department.

Domestic and family violence policy

The department launched a Domestic and Family Violence Policy in May 2016. The policy reaffirms our commitment to taking action on this important issue by providing a compassionate and supportive environment for employees affected by domestic and family violence. The policy was the first step towards putting words into action and offers many internal and external services to those affected, including trained contact officers, as well as flexible working arrangements to assist staff. Priorities in 2016–17 include working towards becoming a White Ribbon accredited workplace.

Photo 3.1 Rosie Batty with Scott Channing, Environment Branch and Kerrie Tim, Principal Adviser – Indigenous Affairs at the launch of the PM&C Domestic Violence Policy.


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http://www.dss.gov.au

Recruitment In August 2015, the department made a number of innovative changes to the way we attract, assess and recruit candidates. Changes to the recruitment process included removing selection criteria and duty statements and replacing these with a clear job advertisement that outlines the opportunity and the ideal candidate. We have seen a clear increase in the size and diversity of candidate pools and the changes have been recognised with PM&C nominated for four Human Resources Industry and public administration awards.

Entry level programmes

The department continued to offer opportunities through a range of entry level programmes. This included an increase in entry level opportunities offered for Aboriginal and Torres Strait Islander people and the department creating partnerships with other APS agencies to provide placement opportunities. The department’s entry level programmes and participant numbers are listed below.

è The PM&C Graduate Programme had 30 participants in 2016 (this included two participants recruited through the APS Indigenous Pathways Graduate Programme).

è The Indigenous Australian Government Development Programme (IAGDP) had 15 participants.

è The Indigenous Apprenticeship Programme had two programme participants in 2015–16.

è The PM&C Vacation Employment Programme welcomed 15 university participants.

Employment arrangements The department’s employee profile shifted significantly following the machinery of government changes in late 2013. The terms and conditions of employment, including remuneration of employees moved to the department as a result of these changes, are preserved under a section 24(3) determination made under the Public Service Act 1999. The terms and conditions of affected employees are preserved until such time as a new enterprise agreement is negotiated for the department.

In addition to the current PM&C Enterprise Agreement 2011–14, the Department is administering the terms and conditions of the following nine agreements:

è Attorney-General’s Department Enterprise Agreement 2011

è Department of Broadband, Communications and the Digital Economy Enterprise Agreement 2011–14


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è Department of Education, Employment and Workplace Relations Enterprise Agreement 2012–14

è One Innovation Enterprise Agreement 2011

è Department of Finance and Deregulation Enterprise Agreement 2011–14

è Department of Health and Ageing Enterprise Agreement 2011–14

è Department of Families, Housing, Community Services and Indigenous Affairs Enterprise Agreement 2012–14

è Department of Regional Australia, Regional Development and Local Government Enterprise Agreement 2011

è Department of Sustainability, Environment, Water, Population and Communities Enterprise Agreement 2011–14.

Data on employment arrangements for all departmental staff is provided at Figure 3.4.

Figure 3.4 Trends in employment agreements – as at 30 June

2014 2015 2016

Section 24(1) determinations 1

SES 71 73 107

Non-SES 1 1 2 66

Section 24(3) determinations 2

SES 46 31 0

Non-SES 1,431 1,361 1,115

Enterprise Agreement (EA)

SES 0 0 0

Non-SES 819 768 756

individual Flexibility Arrangements

SES 0 0 0

Non-SES 98 88 96

Total 3 2,466 2,323 2,140

Notes:1 Non-SES staff subject to a determination under section 24(3) were offered a determination under

section 24(1) in lieu of an Individual Flexibility Arrangement where agreed. 2 Staff transferred to PM&C to give effect to Administrative Arrangements Orders made by the

Governor-General in Council on 18 September 2013 had all terms and conditions of employment maintained by determinations under section 24(3) of the Public Service Act 1999.

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


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Consistent with the relevant enterprise agreement, eligible departmental employees received pay point progression at the end of financial year. Data on base salary is available in Figure 3.5 below.

Figure 3.5 Trends in base salary

Base salary 1

30 June 2014 30 June 2015 30 June 2016

Min Max Min Max Min Max

APS 1-3 41,049 62,837 41,049 62,837 41,049 62,837

APS 4-6 56,711 97,137 60,428 100,095 60,428 100,095

EL1 94,705 123,603 93,975 128,287 93,975 128,287

EL2 112,992 148,759 111,677 156,138 111,677 156,138

SES Band 1 151,933 202,385 151,933 202,385 154,971 214,451

SES Band 2 212,950 246,897 204,248 260,000 225,044 315,000

SES Band 3 276,250 367,719 300,000 367,719 306,000 371,280

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

Notes:1 Data sourced from Enterprise Agreements and Section 24(1) Determinations covering the department’s

workforce as a result of the machinery of government changes

Productivity gains

We worked towards achieving a range of productivity initiatives throughout the year to enhance our ability to deliver the business outcomes of the department. These included enhancements to our Human Resource systems, ICT services and business processes.

Performance pay and other benefits

Two employees received performance bonuses in 2015–16 under Individual Flexibility Arrangements (established at the former Department of Health and Ageing). To avoid disclosing personal information performance bonus figures have not been published.

Employees can access a range of salary sacrifice benefits including additional superannuation, leased motor vehicles, laptop computers, mobile telephones and study assistance.


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Performance management Framework All employees participate in the performance management process; the main objectives are to:

è link individual work with the department’s strategic and operational objectives

è provide considered feedback to employees on their performance and achievements at work

è identify and support the ongoing learning and development needs of employees

è effectively identify and address underperformance.

Learning and developmentIn 2015–16 the department delivered 233 training sessions to employees Australia-wide. Centrally coordinated courses were linked to our Capability Framework. Training opportunities included APS foundation and core skills, diversity, specialist policy and project management, critical thinking, writing skills and the management of domestic and family violence in the workplace. Leadership development was also a strong focus in 2015–16. A number of internal and external leadership and

talent development opportunities were offered to high-performing and high-potential APS 6 to SES employees.

In 2015–16 the department offered greater access to interactive, accessible and self-paced ‘just-in-time’ eLearning. These opportunities were offered due to increasing demand for online training and to provide employees with the opportunity to complete induction, compliance, leadership, management, and Microsoft Office training online anytime.

The department’s career advisory service provided over 60 employees with tailored one-on-one advice. The department’s study assistance scheme provided 255 employees with access to paid study leave and financial assistance to undertake tertiary education.

The department’s study assistance scheme provides employees with access to paid study leave and financial assistance to undertake tertiary education. The scheme is designed to encourage and support employees to complete relevant study that will improve their professional skills and knowledge. In the 2015–16 financial year, 255 employees accessed the scheme.


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Work health and safety During the year, the department has focused on revising its Work Health and Safety Management System (WHSMS). The department has progressed through its programme of improvement for the WHSMS which has enabled an evidence-based, risk management approach to WHS considerations. There has also been a focus on achieving nationally consistent WHS management. This focus has led to:

è revision and development of formal WHS consultation mechanism and governance arrangements

è revision of the department’s WHS policy

è revision of procedures for managing safety within the department

è establishment of a national WHS risk register to capture all risks to workers’ health and safety

è development of the department’s Due Diligence Framework and Due Diligence Manual to assist officers in discharging their due diligence obligations under WHS legislation

è increased focus on risk management of specific risks from our unique and diverse risk profile.

The department’s new rehabilitation management system focuses on assisting injured workers to remain at work, or return to work in a manner that is safe and affords a durable outcome. The new rehabilitation management system resulted in the following outcomes:

è rehabilitation case volume has been controlled

è future compensation liabilities have been reduced

è accountability, capacity and authority for managers have increased, allowing lower level issue resolution, earlier referral and implementation of early intervention

è rehabilitation case managers are empowered and cases are decisively and consistently managed to achieve defined outcomes

è accountability for reducing harm and supporting our people is systematically embedded and verified.

Notifiable incidents and investigations

Under the WHS Act, the department is required to provide statistics of any notifiable incidents that the department became aware of during the year that arose out of the conduct of business or undertakings by the entity, and any investigations conducted and notices given. In accordance with WHS legislation, a notifiable incident is defined as: the death of a person; or a serious injury or illness of a person; or a dangerous incident. During this period, there were six notifiable incidents, including four serious injury or illness of a person that required notice to Comcare under section 35 and two dangerous incidents that required notice to Comcare under section 35.


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From the notifiable incidents no follow up has been requested by the regulator following notification. This suggests that the information provided to the regulator by the department is sufficient

and the regulator is satisfied with the department’s response to the incidents.

No investigations were undertaken by the Regulator under Part 10 of the WHS Act.

ENVIRONMENTAL PERFORMANCE

As outlined in our Environmental Policy Statement, we are committed to each of the five principles of sustainable development (integration, precaution, intergeneration, biodiversity and valuation) identified in the Environment Protection and Biodiversity Conservation Act 1999. Where they applied to our operations, in 2015–16, we continued to mitigate the effects of our impact on the environment by:

è conserving resources and minimising waste

è implementing a range of environmentally sound work practices

è including environmental impacts in our purchasing policies where appropriate

è complying with all relevant Commonwealth Government, State and Territory environmental legislation, regulations, policies and initiatives

è using technology such as telepresence and desktop videoconferencing to facilitate meetings with interstate colleagues where appropriate

è supporting and encouraging staff to utilise environmentally friendly modes of transport

è supporting the use of recycled paper and recycling systems

è communicating our environmental commitments to staff and the public.

During 2015–16 we continued to demonstrate environmental responsibility by minimising the negative effects we have on the environment in the areas of energy efficiency, waste and water. This includes:

è maintaining a National Australian Built Environment Rating System (NABERS) rating of 4.5 stars for whole building energy and achieving a 5 star rating for base building energy and 3.5 stars for water at National Circuit, Barton


PAGE 63

è maintaining a NABERS rating of 5.5 stars for tenancy and 5 star base building NABERS rating for building energy and water at Centraplaza, Bowes Place, Woden

è holding monthly Building Management Committee meetings in line with our Green Lease obligations and quarterly Environmental Committee meetings to review energy usage and analyse consumption

è regularly monitoring levels of waste recycling

è moving to a ‘paperless office’ by supporting the use of electronic document management and collaboration as well as digital and mobile technology solutions for many staff (iPads, laptops)

è using a 70,000 litre rainwater tank to flush toilets and water gardens at One National Circuit, Barton

è encouraging recycling by providing recycling bins as well as waste bins, with suitable waste composted by a recycling provider

è using drought tolerant plants in the One National Circuit gardens

è participating in Earth Hour

è implementing our Environmental Management System (EMS), based on the Australian Standard AS/NZS ISO 14001, and conducting regular reviews of the EMS

è encouraging staff to utilise black/white and two sided printing options

è replacing down light globes with LED lighting in building core and toilet facilities at One National Circuit and auto-dimming workspace lights following inactivity

è the majority of office equipment in both One National Circuit and Centraplaza using an energy saver mode when not in use

è purchasing up to 10 per cent of the energy for tenant light and power for both One National Circuit and Centraplaza from green power sources

è the installation of Predictive Optimisation software at Centraplaza to enable monitoring of real-time weather forecasts, energy prices/ tariffs and demand response signals; this results in automatic adjustments to reduce energy usage.


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FINANCIAL MANAGEMENT

This section highlights the department’s financial performance during 2015–16 for both departmental and administered activities.

The department’s financial statements are presented from page 78 of this report. The Australian National Audit Office issued an unmodified audit opinion of these statements on 6 September 2016.

Financial performance of departmental activities

Operating result

The department recorded a technical operating deficit of $26.2 million including non-cash items:

è $21.1 million in unfunded depreciation and amortisation expenses

è $4.6 million in the discounting of employee provisions, mainly due to a decrease in the long term Government bond rate

è $1.8 million in write-down and impairment of assets expenses, mainly due to the disposal of property, plant and equipment assets

è $0.5 million in losses from asset sales and the unwinding of make-good provisions.

The exclusion of these non-cash adjustments results in an operating surplus of $1.8 million.

Statement of Financial Position

As at 30 June 2016, the department had net equity of $114.5 million, representing $233.5 million of assets offset by $119.0 million of liabilities. The financial asset balance of $111.3 million primarily represented cash and appropriation receivable. The non-financial asset balance of $112.7 million mainly represented staff accommodation, offices in remote areas and leasehold improvements. The majority of the liabilities balance reflected $76.3 million in employee provisions and $22.8 million payable to suppliers.


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Financial performance of administered activities

Income

Administered revenue of $100.3 million predominantly reflects $76.1 million of interest earned on the investment of funds held by the Aboriginals Benefit Account (ABA) and the Aboriginal and Torres Strait Islander Land Account (ATSILA) and grant acquittals of $21.7 million that was returned to the Government.

The revaluation of land, buildings, property, plant and equipment owned by portfolio entities resulted in a $108.1 million increase in the net book value of administered investments. These adjustments are reflected in the Asset Revaluation Reserve and Other Comprehensive Income.

Expenses

In 2015–16 the programmes administered by the department on behalf of the Australian Government included:

è $1,285.5 million for the Indigenous Affairs programmes

è $163.1 million for the ABA special account

è $120.7 million in payments to Corporate Commonwealth Entities in the portfolio

è $51.1 million for the ATSILA special account

è $16.3 million for other programmes including Women’s policy and other administered items.

Assets

As at 30 June 2016, administered assets were valued at $4,566.1 million reflecting:

è $2,549.0 million of investments, being ABA and ATSILA funds held in term deposits

è $1,922.3 million representing the net book value of the portfolio’s corporate entities

è $63.9 million in trade and other receivables

è $20.1 million cash at bank

è $10.8 million non-financial assets.

Liabilities

As at 30 June 2016 the department had administered liabilities of $57.7 million. The most significant items were:

è $41.1 million of suppliers, grants and other payables

è $16.0 million of provisions for future non-cash benefits to be provided to former Governors-General.


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Figure 3.6 Resourcing statement

Actual Available Appropriation

for 2015–16 $’000

Payments Made

2015–16 $’000

Remaining balance 2015–16

$’000

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

Ordinary annual services 1

Departmental appropriation 2 518,585 426,946 91,639

Total 518,585 426,946 91,639

Administered expenses 3

Outcome 1: Prime Minister and Cabinet

20,920 16,510

Outcome 2: Indigenous 1,242,060 1,220,622

Payments to corporate Commonwealth entities and companies 4

120,727 120,727

Total 1,383,708 1,357,859

Total ordinary annual services A 1,902,293 1,784,805

Other services 5

Administered expenses

Specific payments to States, Act, NT and local Government

Outcome 1: Prime Minister and Cabinet

- -

Outcome 2: Indigenous 8,647 7,588

Total 8,647 7,588

Departmental non-operating

Equity injections 6 14,162 5,830 8,332

Total 14,162 5,830 8,332


PAGE 67



for 2015–16 $’000

Payments Made

2015–16 $’000


$’000

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

Administered non-operating

Administered assets and liabilities

- -

Payments to corporate Commonwealth entities and companies - non-operating

36,550 36,550

Total 36,550 36,550

Total other services B 59,359 49,968

Total available annual appropriations and payments

1,961,652 1,834,773

Special appropriations

Special appropriations limited by criteria/entitlement

Aboriginal Land Rights (Northern Territory) Act 1976

208,253

Higher Education Support Act 2003

51,333

Special appropriations limited by amount

Public Governance, Performance and Accountability Act 2013

6

Total special appropriations C 259,592


PAGE 68



for 2015–16 $’000

Payments Made

2015–16 $’000


$’000

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

Special accounts 7

Opening balance 24,117

Appropriation receipts 207,285

Non-appropriation receipts to Special Accounts

2,644,853

Payments made 2,846,685

Total special accounts D 2,876,255 2,846,685 29,570

Total resourcing and payments

A+B+C+D 4,837,907 4,941,050

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

(364,562) (364,562)

Total net resourcing and payments for PM&C

4,473,345 4,576,488

Notes:1 Appropriation Act (No.1) 2015–16 and Appropriation Act (No.3) 2015–16 including prior year

departmental appropriation and section 74 retained revenue receipts, less permanent quarantines of $51.952 million. For further details refer to Note 5.1 to the financial statements.

2 Includes an amount of $5.241 million in 2015–16 for the Departmental Capital Budget. For accounting purposes this amount has been designated as ‘contribution by owners’.

3 Includes an amount of $24.2 million from 2013–14, $9.2 million from 2014–15 and $0.3 million in 2015–16 for the Administered Capital Budget. For accounting purposes $0.3 million has been designated as ‘contribution by owners’.

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

5 Appropriation Act (No.2) 2015–16.6 Appropriation Act (No.2) 2015–16 equity injections and prior year equity injections.7 Does not include ‘Special public money’ held in accounts like Services for Other entities and Trust Moneys

Special accounts (SOETM).


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Figure 3.7 Expenses by Outcome

Expenses for Outcome 1

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

Budget * 2015–16

$’000

Actual expenses

2015–16 $’000

Variation 2015–16

$’000

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

Programme 1.1: Prime Minister and Cabinet


Ordinary Annual Services (Appropriation Act No. 1, 3 and 5)

18,115 16,360 1,755

Special Accounts 35 17 18

Special appropriations 10 - 10

Special Accounts 5 - 5

Departmental expenses


Expenses not requiring appropriation in the Budget year 2

10,017 6,994 3,023

Total for Programme 1.1 149,577 119,730 29,847

Outcome 1 Totals by appropriation type


Ordinary Annual Services (Appropriation Act No. 1)

18,115 16,360 1,755

Special appropriations 10 - 10

Special Accounts 40 17 23




10,017 6,994 3,023

Total expenses for Outcome 1 149,577 119,730 29,847


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

Budget * 2015–16

$’000

Actual expenses

2015–16 $’000

Variation 2015–16

$’000

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

2015–16 Budget

2015–16 Actuals

Average staffing level (number) 561 545 16

Notes:* Full year budget, including any subsequent adjustment made.1 Departmental Appropriation combines Ordinary annual services (Appropriation Act Nos. 1 and 3) and

Retained Revenue Receipts under section 74 of the PGPA Act 2013.2 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation

expenses, impairment of receivables, valuation of employee provisions, make good expense, audit fees and other non-cash expense items.


PAGE 71



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

Budget * 2015–16

$’000

Actual expenses

2015–16 $’000

Variation 2015–16

$’000

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

Programme 2.1: Jobs, Land and Economy



623,493 558,933 64,560

Special appropriations 192,969 161,308 31,661

Special Accounts 228,334 211,444 16,890

Payments to corporate entities 43,647 43,647 -

Less expenses made from appropriations credited to special accounts

(177,226) (160,339) (16,887)


- 20,363 (20,363)


Programme 2.2: Children and Schooling



222,821 282,468 (59,647)

Other Services (Appropriation Act No.2) 8,647 7,588 1,059

Special appropriations 54,516 54,303 213

Special Accounts 5 - 5


(5) - (5)


- 628 (628)

Total for Programme 2.2 285,984 344,987 (59,003)


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Budget * 2015–16

$’000

Actual expenses

2015–16 $’000

Variation 2015–16

$’000

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

Programme 2.3: Safety and Wellbeing



248,954 252,974 (4,020)



- 282 (282)


Programme 2.4: Culture and Capability



63,310 58,059 5,251

Expenses not requiring appropriation in the Budget year

- 508 (508)


Programme 2.5: Remote Australia Strategies



51,453 51,453 -

Special Accounts 3,210 242 2,968



- 119 (119)



PAGE 73




Budget * 2015–16

$’000

Actual expenses

2015–16 $’000

Variation 2015–16

$’000

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

Programme 2.6: Programme Support


Departmental appropriation 1 273,513 299,260 (25,747)


7,986 23,127 (15,141)


Outcome 2 Totals by appropriation type


Ordinary Annual Services (Appropriation Act No. 1) 1,210,031 1,203,888 6,143

Other Services (Appropriation Act No.2) 8,647 7,588 1,059

Special appropriations 247,485 215,611 31,874

Special Accounts 231,549 211,444 20,105



Departmental appropriation 1 273,513 299,260 (25,747)


7,986 45,026 (37,040)

Total expenses for Outcome 2 2,099,938 2,103,544 (3,606)


(177,231) (160,339) (16,892)

Total net expenses for Outcome 2 1,922,707 1,943,205 (20,498)

2015–16 Budget

2015–16 Actuals

Average staffing level (number) 1,503 1,552 (49)


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Notes:* Full year budget, including any subsequent adjustment made. 1 Departmental Appropriation combines Ordinary annual services (Appropriation Act Nos. 1 and 3) and

Retained Revenue Receipts under section 74 of the PGPA Act 2013.2 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation

expenses, impairment of receivables, valuation of employee provisions, make good expense, audit fees and other non-cash expense items.

The variance in Administered is mainly due to funding of $63.6 million transferred from 2.1 Jobs, Land and Economy Programme to 2.2 Children and Schooling Programme ($59.6 million), and 2.3 Safety and Wellbeing ($4.0 million). These were approved by the Minister for Indigenous Affairs.

ProcurementThe department’s procurement and purchasing in 2015–16 were undertaken in accordance with the principles set out in the Commonwealth Procurement Rules 2014 (CPRs).

CPRs are applied to the department’s procurement activities through the Secretary’s Instructions (SIs) and Financial Rules, training on procurement policies and centralised advice on all procurement matters. These ensure that the department undertakes competitive, non-discriminatory procurement processes; uses resources efficiently, effectively, economically and ethically; and makes decisions in an accountable and transparent manner.

In 2015–16 the department met its procurement obligations under the Indigenous Procurement Policy by awarding 0.5 per cent of contracts to Indigenous businesses.

No contracts of $100,000 or greater (inclusive of GST) were let during 2015–16 that did not provide for the Auditor-General to have access to the contractor’s premises.

There were no contracts in 2015–16 in excess of $10,000 (inclusive of GST) that were exempt from being reported on AusTender on the basis that they would disclose exempt matters under the Freedom of Information Act 1982.

Further information including procurements expected to be undertaken in 2015–16 is in the department’s annual procurement plan, available from the AusTender website (www.tenders.gov.au).

The department supports small business participation in the Commonwealth Government procurement market. Small and medium enterprise (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website: http://www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts/

The department’s procurement practices support SMEs by adopting whole of government solutions to simplify interactions with SMEs. This includes using the Commonwealth Contracting Suite for low risk procurements valued under $200,000.


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http://www.tenders.gov.au

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



The department recognises the importance of paying small businesses on time. The results of the Survey of Australian Government Payments to Small Businesses are available on The Treasury’s website: www.treasury.gov.au.

ConsultantsThe department engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Decisions to engage consultants during 2015–16 were made in accordance with the PGPA Act and related regulations, including the Commonwealth Procurement Rules and relevant internal policies.

During 2015–16, 47 new consultancy contracts were entered into by the department, with a total actual expenditure of $1.65 million. In addition, 25 ongoing consultancy contracts were active during the 2015–16 financial year, incurring a total actual expenditure of $1.29 million. Details of trends in consultancies are shown in Figure 3.8.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website www.tenders.gov.au .

Advertising and market researchUnder section 311A of the Commonwealth Electoral Act 1918, the department is required to disclose payments of $12,565 or more (inclusive of GST) for advertising and market research.

During 2015–16, the department’s total expenditure for advertising and market research over the reporting threshold was $241,763.06 (see Figure 3.9).

In accordance with section 311A of the Commonwealth Electoral Act 1918, this section contains information about advertising and marketing research.

During 2015–16 the department conducted no advertising campaigns. Further information on advertising is available at www.dpmc.gov.au.

Figure 3.8 Trends in consultancies

Consultancies 2013–14 2014–15 2015–16

Number of existing consultancies 13 17 25

Number of new consultancies 59 33 47

Total consultancies 72 50 72

Total expenditure $3.83m $2.40m $2.94m


PAGE 76

http://www.treasury.gov.au

http://www.tenders.gov.au

Figure 3.9 2015–16 Advertising and market research

Firm Service provided 2015–16 Payments made

in $ (incl GST)

Media advertising organisations

Australian Public Service Commission

Advertising and recruitment services 50,689.00

Mitchell and Partners Australia Pty Ltd

Advertising for Recruitment, State Funerals, community consultation and materials for the Community Development Programme, and notifications of hearings for the Independent National Security Legislation Monitor.

115,724.06

Teber Pty Ltd (First10)

Advertising for Recruitment 21,890.00

Intandem Supply of promotional merchandise for the 2016 National NAIDOC activities

53,460.00

Asset managementThe department manages its assets in accordance with the Secretary’s Instructions, relevant accounting standards and Department of Finance requirements.

The department administers significant strategic assets, in the form of investments, on behalf of the Australian Government for two special accounts: the Aboriginals Benefit Account (ABA) and the Aboriginals and Torres Strait Islander Land Account (ATSILA). Both the ABA and ATSILA investment strategies are focused on cash flow requirements, preservation of the fund and management of risks. Monies that are surplus to immediate requirements are invested under section 58 of the PGPA Act. For further detail, refer to the ABA and ATSILA Annual Reports.

Non-compliance with finance lawNo significant instances of non-compliance requiring a report to the responsible Minister in accordance with the PGPA Act have been recorded in the department for 2015–16.

Grant programmesInformation on grants awarded by the department during the period 1 July 2015 to 30 June 2016 is available at www.dpmc.gov.au.


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PART 4

Financial statements

Department of the Prime Minister and Cabinet financial statements 79

Aboriginals Benefit Account financial statements 149

Aboriginal and Torres Strait Islander Land Account financial statements 171

DEPARTMENT OF THE PRIME MINISTER AND CABINET FINANCIAL STATEMENTS

The following pages 79 to 148 contain PDFs of the Department of the Prime Minister and Cabinet's financial statements for the period ended 30 June 2016. If you require assistance accessing these pages, please email [email protected]

Part 4: Financial statements

PAGE 79


PAGE 80


PAGE 81

DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2016

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

2016 2015 Original budget

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

Employee benefits 1.1A 269,825 272,603 252,540 Suppliers 1.1B 132,006 267,414 128,531 Grants 1.1C 450 1,236 962 Depreciation and amortisation 3.2A 21,092 28,225 21,124 Finance costs - unwinding of discount on make good 38 52 18 Write-down and impairment of assets 1.1D 1,823 497 - Losses from asset sales 1.1E 506 31 -

Total expenses 425,740 570,058 403,175 Own-source income Own-source revenue

Sale of goods and rendering of services 1.2A 12,483 13,285 5,964 Resources received free of charge 1.2B 2,687 10,623 -

Total own-source revenue 15,170 23,908 5,964 Gains

Sale of assets - - 1,122 Other gains 1.2C 203 93 -

Total gains 203 93 1,122 Total own-source income 15,373 24,001 7,086 Net cost of services 410,367 546,057 396,089 Revenue from Government - departmental appropriations

384,202 528,523 374,965

Deficit (26,165) (17,534) (21,124) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus (5,166) 3,822 - Total comprehensive loss (31,331) (13,712) (21,124)


PAGE 82

DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF FINANCIAL POSITION as at 30 June 2016



Notes $'000 $'000 $'000 ASSETS Financial assets

Cash and cash equivalents 5,031 12,063 500 Trade and other receivables 3.1A 102,041 118,512 78,914 Accrued revenue - recovery of departmental costs 4,235 5,397 362

Total financial assets 111,307 135,972 79,776 Non-financial assets

Property, plant and equipment 3.2A 90,807 119,415 116,565 Intangibles 3.2A 18,677 13,913 20,799 Prepayments 3.2B 3,226 2,604 3,912

Total non-financial assets 112,710 135,932 141,276 Assets held for sale - land and buildings 9,454 430 - Total assets 233,471 272,334 221,052 LIABILITIES Payables

Suppliers 3.3A 22,812 31,714 27,406 Grants - private sector - 370 - Other payables 3.3B 18,801 26,339 14,838

Total payables 41,613 58,423 42,244 Provisions

Employee provisions 6.1A 76,251 72,758 71,465 Make good provisions 3.4A 1,108 1,190 655

Total provisions 77,359 73,948 72,120 Total liabilities 118,972 132,371 114,364 Net assets 114,499 139,963 106,688 EQUITY

Contributed equity 152,923 147,056 160,271 Accumulated deficit (45,311) (19,146) (61,814) Reserves 6,887 12,053 8,231

Total equity 114,499 139,963 106,688


PAGE 83

DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2016



$'000 $'000 $'000 CONTRIBUTED EQUITY Opening balance Balance carried forward from previous period 147,056 121,618 153,875 Other - - 43 Adjusted opening balance 147,056 121,618 153,918 Transactions with owners Distributions to owners

Returns of capital: Restructuring1 (970) - (7,984) Other2 (1,500) (2,816) -

Contributions by owners Appropriation (equity injection) 3,096 6,205 3,096 Departmental Capital Budget (DCB) 5,241 22,049 11,241

Total transactions with owners 5,867 25,438 6,353 Closing balance as at 30 June 152,923 147,056 160,271 ACCUMULATED DEFICIT Opening balance Balance carried forward from previous period (19,146) (1,612) (40,666) Other - - 74 Adjusted opening balance (19,146) (1,612) (40,592) Comprehensive income Deficit for the period (26,165) (17,534) (21,124) Total comprehensive income (26,165) (17,534) (21,124) Transactions with owners Distributions to owners

Returns of capital: Other - - (98)

Total transactions with owners - - (98) Closing balance as at 30 June (45,311) (19,146) (61,814)


PAGE 84

DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2016



$'000 $'000 $'000 ASSET REVALUATION RESERVE Opening balance Balance carried forward from previous period 12,053 8,231 8,231 Adjusted opening balance 12,053 8,231 8,231 Comprehensive income Other comprehensive income (5,166) 3,822 - Total comprehensive income (5,166) 3,822 - Closing balance as at 30 June 6,887 12,053 8,231 TOTAL EQUITY Opening balance Balance carried forward from previous period 139,963 128,237 121,440 Other - - 117 Adjusted opening balance 139,963 128,237 121,557 Comprehensive income Other comprehensive income (5,166) 3,822 - Deficit for the period (26,165) (17,534) (21,124) Total comprehensive income (31,331) (13,712) (21,124) Transactions with owners Distributions to owners

Returns of capital: Restructuring1 (970) - (7,984) Other2 (1,500) (2,816) (98)

Contributions by owners Appropriation (equity injection) 3,096 6,205 3,096 Departmental Capital Budget (DCB) 5,241 22,049 11,241

Total transactions with owners 5,867 25,438 6,255 Closing balance as at 30 June 114,499 139,963 106,688

1 Refer Note 8.2 Restructuring. 2 Return of appropriation under section 51 of PGPA Act of $1.500 million in 2015-16 reflects return of DCB funding transferred to the Digital Transformation Office; $2.000 million in 2014-15 reflects unused funding for voluntary redundancies and $0.816 million for movement of funds to the Digital Transformation Office.

Accounting Policy

Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and DCBs are recognised directly in contributed equity in that year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other Distributions to/from Owners

The Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.


PAGE 85

DEPARTMENT OF THE PRIME MINISTER AND CABINET CASH FLOW STATEMENT for the period ended 30 June 2016



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

Sale of goods and rendering of services 15,156 12,788 6,053 Net GST received 11,940 18,022 1,122 Appropriations 404,470 558,648 417,551

Total cash received 431,566 589,458 424,726 Cash used

Employees 271,498 280,763 280,461 Suppliers 160,575 291,477 139,091 Grants 820 866 1,622 Retained receipts transferred to the Official Public Account 14,894 12,533 6,052

Total cash used 447,787 585,639 427,226 Net cash from/(used by) operating activities 5.4A (16,221) 3,819 (2,500) INVESTING ACTIVITIES Cash received

Proceeds from sales of property, plant and equipment 3,212 409 2,500

Total cash received 3,212 409 2,500 Cash used

Purchase of property, plant and equipment 6,257 3,193 14,337 Purchase of intangibles 8,224 4,252 - Other investing 85 - -

Total cash used 14,566 7,445 14,337 Net cash used by investing activities (11,354) (7,036) (11,837) FINANCING ACTIVITIES Cash received

Contributed equity Equity injections 5,830 2,631 - Departmental capital budget 14,713 11,016 14,337

Total cash received 20,543 13,647 14,337 Net cash from financing activities 20,543 13,647 14,337 Net increase/(decrease) in cash held (7,032) 10,430 - Cash and cash equivalents at the beginning of the reporting period 12,063 1,633 500 Cash and cash equivalents at the end of the reporting period 5,031 12,063 500


PAGE 86

DEPARTMENT OF THE PRIME MINISTER AND CABINET BUDGET COMMENTARY for the period ended 30 June 2016


Departmental Budget Commentary: The below table provides commentary for significant variances between the Department’s original budget estimates, as published in the 2015-16 Portfolio Budget Statements, and the actual expenditure and net asset position for the year.

Explanation of major variances Affected line items (and statement) Bond rate: a decrease in the long term Government bond rate used for valuing employee provisions has caused employee provisions to be higher than budget by 7%.

Employee benefits expense - Statement of Comprehensive Income Employee provisions - Statement of Financial Position

Sub-leasing of office accommodation: arrangements for sub-leasing office accommodation in the regional network were finalised post budget, which is the main reason for Own-source revenue being 154% higher than budget.

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

Additional taskforces: additional taskforces caused supplier expenses to be higher than budget by 3%.

Payments to suppliers - Cash Flow Statement Supplier expense - Statement of Comprehensive Income

Prior year restructuring: a delay in finalising the settlement of appropriation receivable for employee provisions relating to prior year Government restructuring change, caused an underestimate of Trade and other receivables by 29%.

Trade and other receivables - Statement of Financial Position

Asset valuations and reclassifications: the annual stocktake and revaluation of assets, including impairment of property, plant and equipment and reclassification of land and buildings to ‘assets held for sale', has caused the non-financial assets to be lower than budget by 20%.

Non-financial assets - Statement of Financial Position Assets held for sale - Statement of Financial Position Asset revaluation reserve - Other Comprehensive Income Write-down and impairment of assets - Statement of Comprehensive Income


PAGE 87

DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the period ended 30 June 2016


2016 2015 Original Budget

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

Employee benefits 2.1A 1,025 874 900 Suppliers 2.1B 97,037 65,403 104,026 Subsidies - Petrol Sniffing Prevention Strategy 499 1,601 2,184 Grants 2.1C 1,231,747 1,218,600 1,237,147 Depreciation and amortisation 4.2A 373 332 124 Finance costs 2.1D 14,304 547 506 Write-down and impairment of assets 2.1E 8,054 11,248 - Losses from asset sales - 821 - Payments associated with Land Councils 2.1F 107,192 88,313 132,762 Payments to Corporate Commonwealth entities and companies 2.1G 120,727 130,058 120,727 Payments to Indigenous Land Corporation 50,712 49,865 - Mining withholding tax 5,525 4,995 -

Total expenses 1,637,195 1,572,657 1,598,376 Income Revenue Non-taxation revenue

Interest - investments 76,117 86,688 71,707 Other revenue 2.2A 24,176 20,070 1,738

Total non-taxation revenue 100,293 106,758 73,445 Total revenue 100,293 106,758 73,445 Gains

Assets received free of charge - 818 - Other gains 2.2B 79 - -

Total gains 79 818 - Total income 100,372 107,576 73,445 Net cost of services 1,536,823 1,465,081 1,524,931 Deficit (1,536,823) (1,465,081) (1,524,931) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserves 108,106 61,595 - Items subject to subsequent reclassification to net cost of services

Actuarial gains/(losses) - former Governors-General entitlements 6.1C 632 (1,903) -

Total other comprehensive income 108,738 59,692 - Total comprehensive loss (1,428,085) (1,405,389) (1,524,931)


PAGE 88

DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES as at 30 June 2016


2016 2015 Original Budget

Notes $'000 $'000 $'000 ASSETS Financial assets

Cash and cash equivalents 4.1A 20,094 14,563 16,035 Trade and other receivables 4.1B 63,862 72,636 44,856 Other investments 4.1C 2,549,016 2,480,243 2,554,449 Investments in Corporate Commonwealth entities 4.1D 1,922,338 1,777,729 1,745,587

Total financial assets 4,555,310 4,345,171 4,360,927 Non-financial assets

Property, plant and equipment 4.2A 1,100 1,437 1,910 Prepayments 4.2B 9,690 6,120 7,455

Total non-financial assets 10,790 7,557 9,365 Total assets administered on behalf of Government 4,566,100 4,352,728 4,370,292 LIABILITIES Payables

Suppliers 4.3A 7,086 11,490 624 Grants 4.3B 19,607 18,640 - Other payables 4.3C 14,381 149 25,534

Total payables 41,074 30,279 26,158 Provisions

Employee provisions 6.1B 355 272 330 Non-cash benefits - former Governors-General 6.1C 16,037 17,509 14,629 Other provisions 4.4A 187 227 -

Total provisions 16,579 18,008 14,959 Total liabilities administered on behalf of Government 57,653 48,287 41,117 Net assets 4,508,447 4,304,441 4,329,175


PAGE 89

DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED BUDGET COMMENTARY as at 30 June 2016


Administered Budget Commentary: The below table provides commentary for significant variances between the Department’s original budget estimates for administered functions, as published in the 2015-16 Portfolio Budget Statements, and the actual expenditure and net asset position for the year.

Explanation of major variances Affected line items (and statement) Royalty equivalent income: statutory payments to royalty associations were higher than budget due to additional mining royalty equivalent income received by the Aboriginals Benefit Account. 30% of royalty equivalent income received is distributed to relevant royalty associations.

Payments associated with Land Councils combined with Payments to Indigenous Land Corporation – Administered Schedule of Comprehensive Income. Special appropriations - Administered reconciliation table

Revaluation by Corporate Commonwealth entities: revaluations undertaken by the Indigenous Land Corporation have increased its net assets position by 35%, the main reason for investments in Corporate Commonwealth entities being higher than budget.

Investments in Corporate Commonwealth entities - Statement of Financial Position Changes in asset revaluation reserves - Other comprehensive income

Concessional loan discount commitment: during 2015-16 PM&C, on behalf of the Australian Government, entered an agreement to provide a concessional loan to the Indigenous Land Corporation on 1 July 2016. As such, a $13.848 million concessional loan discount commitment was required to be recognised in 2015-16.

Other payables - Administered Schedule of Assets and Liabilities Finance Costs - Administered Schedule of Comprehensive Income


PAGE 90

DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED RECONCILIATION SCHEDULE for the period ended 30 June 2016

2016 2015 $'000 $'000

Opening assets less liabilities as at 1 July 4,304,441 4,159,564 Net cost of services Income 100,372 107,576 Expenses

Payments to entities other than Corporate Commonwealth entities and companies (1,465,756) (1,392,734) Payments to Indigenous Land Corporation (50,712) (49,865) Payments to Corporate Commonwealth entities and companies (120,727) (130,058)

Transfers (to)/from the Australian Government

Appropriation transfers from Official Public Account Annual appropriation for administered expenses (non-Corporate Commonwealth entities and companies) 1,349,923 1,290,468 Annual appropriation for payment to Corporate Commonwealth entities and companies 120,727 130,058 Special appropriations (non-Corporate Commonwealth entities and companies) 265,975 216,420 Special account 33,644 18,434

Transfers to Official Public Account (141,103) (124,618) Transfers to Official Public Account Special accounts (33,719) (18,620)

Equity injection to Corporate Commonwealth entities and companies 36,550 38,124 Movement in make good asset 44 22 Restructuring 94 - Administered investments 108,062 61,573 Revaluation of liabilities relating to former Governors-General entitlements 632 (1,903) Closing assets less liabilities as at 30 June 4,508,447 4,304,441

Accounting Policy Administered cash transfers to and from the Official Public Account Revenue collected by PM&C for use by the Government rather than for PM&C is administered revenue. Collections are transferred to the Official Public Account (OPA), maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by PM&C on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.


PAGE 91

DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED CASH FLOW STATEMENT for the period ended 30 June 2016

2016 2015 Notes $'000 $'000 OPERATING ACTIVITIES Cash received

Net GST received 115,256 98,080 Other 2,719 9,538

Total cash received 117,975 107,618 Cash used

Employees 996 905 Suppliers 104,915 63,956 Subsidy payments 499 1,601 Grant payments 1,323,017 1,309,520 Payments to Corporate Commonwealth entities and companies 120,727 130,058 Payments associated with Land Councils 107,192 88,313 Payments to Indigenous Land Corporation 50,712 49,865 Other 5,525 4,995

Total cash used 1,713,583 1,649,213 Net cash used by operating activities 5.4B (1,595,608) (1,541,595) INVESTING ACTIVITIES Cash received

Proceeds from realisation of investments 2,567,728 3,982,951 Interest on investments 74,370 87,710

Total cash received 2,642,098 4,070,661 Cash used

Purchase of property, plant and equipment - 1 Payments to Corporate Commonwealth entities and companies 36,550 38,124 Purchase of investments 2,636,500 4,044,383

Total cash used 2,673,050 4,082,508 Net cash used by investing activities (30,952) (11,847) Cash received - restructuring 94 - Net decrease in cash held (1,626,466) (1,553,442) Cash and cash equivalents at the beginning of the reporting period 14,563 17,739 Cash from Official Public Account

Appropriations 1,773,175 1,675,070 Special Accounts 33,644 18,434

Total cash from the Official Public Account 1,806,819 1,693,504 Cash to Official Public Account

Appropriations (141,103) (124,618) Special Accounts (33,719) (18,620)

Total cash to the Official Public Account (174,822) (143,238) Cash and cash equivalents at the end of the reporting period 4.1A 20,094 14,563


PAGE 92

DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2016

Overview

1. Departmental Financial Performance

Expenses 1.1.

Own-Source Revenue and Gains 1.2.

2. Income and Expenses Administered on Behalf of Government

Administered – Expenses 2.1.

Administered – Income 2.2.

3. Departmental Financial Position

Financial Assets 3.1.

Non-Financial Assets 3.2.

Payables 3.3.

Other Provisions 3.4.

4. Assets and Liabilities Administered on Behalf of Government

Administered – Financial Assets 4.1.

Administered – Non-Financial Assets 4.2.

Administered – Payables 4.3.

Administered – Other Provisions 4.4.

5. Funding

Appropriations 5.1.

Special Accounts 5.2.

Net Cash Appropriation Arrangements 5.3.

Cash Flow Reconciliation 5.4.

6. People

Employee Provisions 6.1.

Senior Management Personnel Remuneration 6.2.

7. Managing Uncertainties

Contingent Assets and Liabilities 7.1.

Financial Instruments 7.2.

Administered – Financial Instruments 7.3.

Fair Value Measurement 7.4.

Administered – Fair Value Measurement 7.5.

8. Other Information

Assets Held in Trust 8.1.

Restructuring 8.2.

Reporting of Outcomes 8.3.

94979799100100102103103105109110111111115117118119119124127127129129131132132132134138141143143144145


PAGE 93


Overview Objectives of the Department The Department of the Prime Minister and Cabinet (PM&C) is a not-for-profit Australian Government controlled Department of State.

The objective of PM&C is to provide policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries on matters that are on the forefront of public and government administration.

PM&C is structured to meet two outcomes as outlined below:

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

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

In 2015-16 PM&C’s activities were identified under the following programs:

Program 1.1: Prime Minister and Cabinet

• Domestic policy

• National security and international policy

• Support services for Government operations

• Official and ceremonial support

• Women’s policy.

Program 2.1: Indigenous

• Commonwealth Aboriginal and Torres Strait Islander policy.

The continued existence of PM&C in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for PM&C’s administration and programs.

PM&C’s activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by PM&C in its own right. Administered activities involve the management or oversight by PM&C, on behalf of the Government, of items controlled or incurred by the Government.

PM&C conducts the following administered activities on behalf of the Government: • Secretariat support to the National Counter-Terrorism Committee

• Parliament House Briefing Room

• Grant payments to the National Australia Day Council Limited

• Compensation and legal expenses

• Operations support for the Prime Minister’s official residences

• Support to former Governors-General

• State occasions and official visits

• Commonwealth Aboriginal and Torres Strait Islander grant programs

• Commonwealth Aboriginal and Torres Strait Islander service delivery

• Women’s grant programs.


PAGE 94


Basis of preparation of the financial statements The financial statements are general purpose financial statements and are required by section 42 of the PGPA Act.

The financial statements have been prepared in accordance with:

• Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2015.

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except where certain assets and liabilities are recorded at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars, and are rounded to the nearest thousand dollars unless otherwise specified.

Except where stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Taxation

PM&C is exempt from all forms of taxation except Fringe Benefits Tax (FBT), the Goods and Services Tax (GST) and Mining Withholding Tax (WHT).

New Australian accounting standards Adoption of new Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material financial impact, and are not expected to have a future material financial impact on PM&C.

Future Australian Accounting Standard requirements

The following new/revised/amending standards and/or interpretations issued by the AASB prior to the sign-off date are expected to have a future material impact on PM&C’s financial statements which are applicable to PM&C for future reporting periods:

Standard/Interpretation Application date Nature of impending changes in accounting policy and likely impact on initial application

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities [AASB 10, AASB 124 & AASB 1049]

1 July 2016 The amended standard requires not-for-profit public sector entities to provide additional disclosure in relation to related party interactions. PM&C may be required to identify and disclose transactions with key management personnel that occur outside the person’s capacity as an ordinary taxpayer, or that involve a benefit not available to the general public.

AASB 16 Leases 1 July 2019 AASB 16 replaces AASB 117 and other lease-related Interpretations. The new standard requires all leases to be accounted for ‘on balance sheet’ by lessees to better reflect the economics of the transactions. PM&C will be required to assess current lease arrangements and recognise relevant balances as leased assets and liabilities.


PAGE 95


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

During 2015-16 PM&C reviewed its exposure to the risk of not complying with statutory conditions on payments from appropriations, namely section 83 of the Constitution. Administered payments of $566.758 million (35% of total administered payments) and departmental payments of $24.591 million (6% of total departmental payments) were subject to additional statutory conditions.

The review identified the following:

• The Aboriginals Benefit Account (ABA) special account – testing of transactions revealed that two payments made from the ABA under section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976 (the ALRA), contravened section 83 of the Constitution totalling $0.296 million. Both were technical contraventions, despite the payments having been made in accordance with the requirements of section 64(3) of the ALRA. Of this amount, $0.003 million has been recovered through the reduction of subsequent payments, and $0.293 million will be offset against future payments. Overpayments from previous years of $0.169 million were recovered during the year.

Payments are required to be made out of the ABA based on royalties received by the Northern Territory and Australian Governments. The contraventions occur when the royalties upon which the payments were based had been estimated at a value greater than the eventual actual. Legislation has been prepared, and is awaiting presentation to Parliament, to reduce the risks of non-compliance associated with these payments to an acceptably low level.

• Long Service Leave (Commonwealth Employees) Act 1976 – testing of payments made under this legislation has revealed no breaches of section 83 of the Constitution in 2015-16.

• Superannuation Act 2005 - testing of payments made under this legislation has revealed 193 breaches of section 83 of the Constitution. These relate to contributions to the Public Sector Superannuation accumulation plan (PSSap) that were calculated using an incorrect basis for superannuation salary. PM&C is investigating mechanisms to improve controls over the selection of the superannuation salary basis. The total value of the potential breaches is $0.069 million.

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

Events after the reporting period Departmental

There are no known events occurring after the reporting period that could impact on the financial statements.

Administered

PM&C, on behalf of the Australian Government, provided a loan facility of $65.000 million to the Indigenous Land Corporation on 1 July 2016, to assist with restructuring of financing activities. The loan agreement was signed in May 2016 and is provided on terms that are more favourable than the borrower would obtain in the market place and therefore a concessional loan discount has been recognised in 2015-16. The $65.000 million loan receivable will be recognised in 2016-17.


PAGE 96


1. Departmental Financial Performance This section analyses the financial performance of the Department of the Prime Minister and Cabinet for the year ended 30 June 2016.

Expenses 1.1. 2016 2015 $'000 $'000 Note 1.1A: Employee benefits Wages and salaries 188,799 197,825 Superannuation

Defined contribution plans 15,608 17,413 Defined benefit plans 24,964 24,264

Leave and other entitlements 29,379 29,100 Separation and redundancies 7,575 103 Other 3,500 3,898 Total employee benefits 269,825 272,603

Note 1.1B: Suppliers Goods and services supplied or rendered

Consultants, legal, contractors and secondees 29,233 62,066 Equipment, repairs and maintenance 12,908 16,137 General expenses1 10,980 13,138 Venue hire 250 21,772 Office accommodation, facility management and security 3,934 13,779 Information, communication and technology 36,983 93,567 Travel 11,684 12,621

Total goods and services supplied or rendered 105,972 233,080 Goods supplied 16,849 18,944 Services rendered 89,123 214,136 Total goods and services supplied or rendered 105,972 233,080 Other suppliers Operating lease rentals in connection with:

Minimum lease payments 23,585 30,008 Workers compensation expenses 2,449 4,326 Total other supplier expenses 26,034 34,334 Total suppliers 132,006 267,414 Leasing commitments Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Within 1 year 24,586 29,141 Between 1 to 5 years 85,555 91,853 More than 5 years 28,083 49,724

Total operating lease commitments 138,224 170,718

Note: Commitments are GST inclusive where relevant. Operating lease commitment - leases for office accommodation Office accommodation lease payments are subject to periodic increases in accordance with the rent review provisions in the lease agreements. 1 Includes $0.029 million audit fees to the ANAO for the financial statements audit of the Aboriginal and Torres Strait Islander Land Account (ATSILA) (2015: $0.029 million), which is not a resource received free of charge.


PAGE 97


Accounting Policy

Leases

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease.

Lease payments are allocated between the principal component and the interest expense.

PM&C currently has 21 (2015: 24) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. PM&C has recognised a make good provision to reflect the present value of this obligation.

2016 2015 $'000 $'000 Note 1.1C: Grants Public sector

Australian Government entities (related parties) - 80 Private sector

Commercial entities - 390 Non-profit organisations 450 766

Total grants 450 1,236 Note 1.1D: Write-down and impairment of assets Asset write-downs and impairments from:

Impairment of property, plant and equipment and intangibles 1,734 418 Impairment of receivables 89 79

Total write-down and impairment of assets 1,823 497 Note 1.1E: Losses from asset sales Property, plant and equipment

Proceeds from sale 3,212 421 Carrying value of asset sold (3,633) (440) Selling expense (85) (12)

Total losses from asset sales 506 31 Accounting Policy

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.


PAGE 98


Own-Source Revenue and Gains 1.2. 2016 2015 $'000 $'000 Note 1.2A: Sale of goods and rendering of services Sale of goods - 1 Rendering of services 12,483 13,284 Total sale of goods and rendering of services 12,483 13,285

Accounting Policy

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

• The amount of revenue, stage of completion and transaction costs incurred can be reliably measured.

• The probable economic benefits associated with the transaction will flow to PM&C.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Note 1.2B: Resources received free of charge Seconded staff 2,213 9,633 ANAO audit fee

PM&C - Financial Statements Audit 410 412 Aboriginals Benefit Account - Financial Statements Audit 64 64

Accommodation received free of charge - 514 Total resources received free of charge 2,687 10,623

Accounting Policy

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Note 1.2C: Other gains Reversal of make good provision 120 93 Reversal of previous asset write-down 45 - Asset first recognised 38 - Total other gains 203 93


PAGE 99


2. Income and Expenses Administered on Behalf of Government This section analyses the activities that the Department of the Prime Minister and Cabinet does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

Administered – Expenses 2.1. 2016 2015 $'000 $'000 Note 2.1A: Employee benefits Wages and salaries 753 676 Superannuation

Defined contribution plans 54 89 Defined benefit plans 85 41

Leave and other entitlements 133 68 Total employee benefits 1,025 874

Note 2.1B: Suppliers Goods and services supplied or rendered

Outsourced providers, contractors and consultants 88,112 50,323 Equipment, repairs and maintenance 692 7,570 General expenses 5,907 4,699 Travel 2,042 1,952 Information, communication and technology 267 830

Total goods and services supplied or rendered 97,020 65,374 Goods supplied 787 786 Services rendered 96,233 64,588 Total goods and services supplied or rendered 97,020 65,374 Other suppliers Operating lease rentals in connection with

Minimum lease payments 7 10 Workers compensation expenses 10 19 Total other supplier expenses 17 29 Total suppliers 97,037 65,403 Leasing commitments Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Within 1 year 610 746 Between 1 to 5 years 1,488 946 More than 5 years 1,369 1,761

Total operating lease commitments 3,467 3,453 Note: Commitments are GST inclusive where relevant. Operating leases comprise 17 leases, six for office accommodation for the former Governors-General, one relating to the Indigenous Education (Northern Territory Facilities) program and ten relating to the Children and Schooling program. Lease payments are subject to periodic increase in accordance with the rent review provisions of the lease. Accounting Policy

Leases

PM&C administers six (2015: seven) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. A make good provision has been raised to reflect the present value of this obligation.


PAGE 100


2016 2015 $'000 $'000 Note 2.1C: Grants Public sector

Australian Government entities 12,450 12,159 Local Governments 51,293 47,465 State and Territory Governments 111,167 45,052

Private sector Non-profit organisations 956,896 937,931 Commercial entities 99,941 175,993

Total grants 1,231,747 1,218,600

Program 2.1 - Jobs, Land and Economy 545,827 567,234 Program 2.2 - Children and Schooling 343,722 285,223 Program 2.3 - Safety and Wellbeing 237,253 233,557 Program 2.4 - Culture and Capability 56,439 57,225 Program 2.5 - Remote Australia Strategy 42,266 68,704 Program 1.1 - Prime Minister and Cabinet 6,240 6,657

Total grants 1,231,747 1,218,600 Accounting Policy PM&C administers a number of grants and subsidy schemes on behalf of the Government. Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed; or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. Where grant moneys are paid in advance of performance or eligibility, a prepayment is recognised. Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility. All subsidies are in connection with external parties and are expected to be settled in no more than 12 months. The Indigenous grants and subsidies are driven by five programs that constitute the flexible and need-focused Indigenous Advancement Strategy (IAS):

• Jobs, Land and Economy

• Children and Schooling

• Safety and Wellbeing

• Culture and Capability

• Remote Australia Strategy. Note 2.1D: Finance costs Concessional loan discount 13,848 - Unwinding of discount 456 547 Total finance costs 14,304 547

Note 2.1E: Write-down and impairment of assets Impairment of receivables 8,051 11,248 Write-down of non-financial assets 3 - Total write-down and impairment of assets 8,054 11,248

Note 2.1F: Payments associated with Land Councils Payments associated with Land Councils administration 47,617 40,803 Land Councils distributions 59,575 47,510 Total payments associated with Land Councils 107,192 88,313


PAGE 101


2016 2015 $'000 $'000 Note 2.1G: Payments to Corporate Commonwealth entities and companies Aboriginal Hostels Limited 37,582 38,044 Indigenous Business Australia 34,258 34,328 Indigenous Land Corporation 9,389 9,527 Torres Strait Regional Authority 39,498 48,159 Total payments to Corporate Commonwealth entities and companies 120,727 130,058

Accounting Policy Payments to Corporate Commonwealth entities and companies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of PM&C. The appropriation to PM&C is disclosed in the Funding section.

Administered – Income 2.2. Note 2.2A: Other revenue Return of grant funding 21,727 18,463 Lease rental income 2,228 1,607 Other 221 - Total other revenue 24,176 20,070

Accounting Policy All administered revenues relate to ordinary activities performed by PM&C on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity. PM&C oversees distribution or expenditure of the funds as directed. Interest revenue is recognised using the effective interest method. Note 2.2B: Other gains Reversal of write-down and impairments 38 - Reversal of make good provision 41 - Total other gains 79 -


PAGE 102


3. Departmental Financial Position This section analyses the Department of the Prime Minister and Cabinet’s assets used to generate financial performance and the operating liabilities incurred as a result. Employee related information is disclosed in the People section.

Financial Assets 3.1. 2016 2015 $'000 $'000 Note 3.1A: Trade and other receivables Goods and services receivables

Goods and services 4,442 1,763 Total goods and services receivables 4,442 1,763 Appropriations receivables

Existing programs 94,940 113,325 Total appropriations receivable 94,940 113,325 Other receivables

Statutory receivables 2,771 3,502 Total other receivables 2,771 3,502 Total trade and other receivables (gross) 102,153 118,590 Less impairment allowance

Goods and services (112) (78) Total impairment allowance (112) (78) Total trade and other receivables (net) 102,041 118,512 All receivables are expected to be recovered in no more than 12 months. Trade and other receivables (gross) aged as follows

Not overdue 100,312 117,668 Overdue by

0 to 30 days 236 120 31 to 60 days 785 396 61 to 90 days 256 38 More than 90 days 564 368

Total receivables (gross) 102,153 118,590

The impairment allowance relates to receivables that are more than 90 days old.


PAGE 103


Reconciliation of the impairment allowance Movements in relation to 2016

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services Total $'000 $'000 As at 1 July 2015 78 78

Amounts recovered and reversed (52) (52) Increase/decrease recognised in net cost of services 86 86

Total as at 30 June 2016 112 112 Movements in relation to 2015

Goods and

services Total $'000 $'000 Total as at 1 July 2014 - -

Increase/decrease recognised in net cost of services 78 78 Total as at 30 June 2015 78 78


PAGE 104

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PAGE 105

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PAGE 106


Impairment of non-financial assets A net impairment of $0.919 million is recognised in 2016 (2015: $0.382 million) for property plant and equipment. A revaluation was conducted in 2016 by independent qualified valuers. A net impairment of $0.815 million is recognised in 2016 (2015: $0.036 million) for intangibles. No intangibles are expected to be sold or disposed of within the next 12 months. Contractual commitments for the acquisition of property, plant, equipment and intangible assets Contractual commitments for the acquisition of IT equipment and services of $8.354 million are payable within one year. Accounting Policy

Asset recognition threshold

Purchases of property, plant and equipment and intangibles are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than IT assets where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by PM&C where there exists an obligation to restore the asset to its original condition. These costs are included in the value of PM&C's property, plant and equipment with a corresponding provision for the ‘make good’ recognised.

Revaluations

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

Asset class Fair value measurement Land Market selling price

Buildings excluding leasehold improvements

Market selling price and depreciated replacement cost

Leasehold improvements Depreciated replacement cost

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

All property, plant and equipment assets with an original cost above $5,000 were formally valued in 2016 by independent qualified valuers.

All leasehold improvement assets with an original cost above $50,000 were formally valued in 2016 by independent qualified valuers.

All demountables were formally valued and assessed for useful lives in 2016 by an independent qualified valuer.

Upon revaluation, any accumulated depreciation is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Intangibles

PM&C’s intangibles comprise internally developed and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Depreciation/Amortisation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to PM&C using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following total useful lives for the current and prior reporting periods:

Buildings excluding leasehold improvements 6 to 50 years

Leasehold improvements Lease term

Property, plant and equipment 1 to 50 years

Intangibles 2 to 7 years


PAGE 107


Accounting Policy (continued)

Impairment

All assets were assessed for impairment during 2016.

Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

2016 2015 $'000 $'000 Note 3.2B: Prepayments

Prepayments 3,226 2,604 Total prepayments 3,226 2,604 Prepayments expected to be recovered

No more than 12 months 2,772 2,451 More than 12 months 454 153

Total prepayments 3,226 2,604


PAGE 108


Payables 3.3. 2016 2015 $'000 $'000 Note 3.3A: Suppliers Trade creditors and accruals 22,812 31,714 Total suppliers 22,812 31,714

Settlement is usually made within 30 days. Supplier payables are expected to be settled in no more than 12 months. Note 3.3B: Other payables Salaries, wages and superannuation 850 8,653 Separation and redundancies payable 745 520 Unearned income 2,587 81 Lease liability 11,713 12,478 Lease incentive 2,250 3,700 Other 656 907 Total other payables 18,801 26,339 Other payables expected to be settled

No more than 12 months 4,637 11,086 More than 12 months 14,164 15,253

Total other payables 18,801 26,339


PAGE 109


Other Provisions 3.4. 2016 2015 $'000 $'000 Note 3.4A: Other provisions Make good provisions expected to be settled

No more than 12 months 276 396 More than 12 months 832 794

Total make good provisions 1,108 1,190

Make good

provision Total $’000 $’000 As at 1 July 2015 1,190 1,190 Gain on reversal of provision (120) (120) Unwinding of discount or change in discount rate 38 38 Total as at 30 June 2016 1,108 1,108

Significant accounting judgements and estimates

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


PAGE 110


4. Assets and Liabilities Administered on Behalf of Government This section analyses assets used to generate financial performance and the operating liabilities incurred as a result which the Department of the Prime Minister and Cabinet does not control, but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

Administered – Financial Assets 4.1. 2016 2015 $'000 $'000 Note 4.1A: Cash and cash equivalents Cash on hand or on deposit 531 428 Aboriginals Benefit Account - Special Account 19,560 14,133 Aboriginal and Torres Strait Islander Land Account - Special Account 3 2 Total cash and cash equivalents 20,094 14,563

Note 4.1B: Trade and other receivables Goods and services receivables

Goods and services receivable 14 72 Total goods and services receivables 14 72 Other receivables

Statutory receivables 11,166 19,587 Interest receivable 32,666 30,920 Grants receivable 14,034 23,278 Special account receivable from the OPA 10,140 9,947 Other 4,448 305

Total other receivables 72,454 84,037 Total trade and other receivables (gross) 72,468 84,109 Less impairment allowance

Other receivables (8,606) (11,473) Total impairment allowance (8,606) (11,473) Total trade and other receivables (net) 63,862 72,636 Trade and other receivables are expected to be received in no more than 12 months. Trade and other receivables (gross) aged as follows

Not overdue 61,572 66,363 Overdue by

0 to 30 days 1,755 1,127 31 to 60 days 337 112 61 to 90 days 185 494 More than 90 days 8,619 16,013

Total trade and other receivables (gross) 72,468 84,109 The impairment allowance relates to receivables that are more than 90 days old. Credit terms are within 30 days (2015: 30 days).


PAGE 111


Reconciliation of the impairment allowance Movements in relation to 2016

Other

receivables Total $'000 $'000 As at 1 July 2015 (11,473) (11,473)

Amounts written-off 5,911 5,911 Amounts recovered and reversed 4,893 4,893 Increase recognised in net cost of services (7,937) (7,937)

Total as at 30 June 2016 (8,606) (8,606) Movements in relation to 2015

Other

receivables Total $'000 $'000 As at 1 July 2014 (8,610) (8,610)

Increase recognised in net cost of services (2,863) (2,863) Total as at 30 June 2015 (11,473) (11,473)

2016 2015 $'000 $'000 Note 4.1C: Other Investments

Bank term deposits 2,549,016 2,480,243 Total other investments 2,549,016 2,480,243 All other investments are expected to be recovered in no more than 12 months.


PAGE 112


2016 2015 $'000 $'000 Note 4.1D: Investments in Corporate Commonwealth entities and companies Equity interest in

Aboriginal Hostels Limited 150,419 146,282 Anindilyakwa Land Council 10,309 8,639 Central Land Council 37,113 35,559 Indigenous Land Corporation 295,301 217,821 Indigenous Business Australia 1,242,448 1,185,459

National Australia Day Council Limited 1,713 1,168 Northern Land Council 9,446 10,105 Outback Stores Pty Ltd 43,082 41,496 Tiwi Land Council 1,351 1,613 Torres Strait Regional Authority 75,568 73,876 Wreck Bay Aboriginal Community Council 55,588 55,711

Total investments in Corporate Commonwealth entities and companies 1,922,338 1,777,729 All investments in Corporate Commonwealth entities and companies are expected to be recovered in more than 12 months.

Investment in Corporate Commonwealth Entities The Australian Government holds a 100% equity interest in the following administered investments:

Aboriginal Hostels Limited

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

Land Councils

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

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

Indigenous Land Corporation

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

Indigenous Business Australia

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


PAGE 113


Investment in Commonwealth Entities (continued)

National Australia Day Council Limited

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

Outback Stores Pty Ltd.

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

Torres Strait Regional Authority

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

Accounting Policy Administered investments Administered investments in subsidiaries are not consolidated because their consolidation is relevant only at the whole-of-government level. Administered investments other than those held for sale are classified as available for sale and are measured at their fair value as at 30 June 2016. Fair value has been taken to be the Australian Government's proportional interest in the net assets as advised by the entities as at the end of the reporting period.


PAGE 114

DEP

AR

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CA

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6

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20

15

2016

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pairm

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reco

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oth

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22

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resu

lt -

- (3

) -

(3)

- D

epre

ciat

ion

expe

nse

- -

(373

) (3

32)

(373

) (3

32)

Oth

er m

ovem

ents

-

-

Oth

er m

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ents

-

- (5

) (4

) (5

) (4

) D

ispo

sals

Dis

posa

ls

- (8

18)

- (3

) -

(821

) To

tal a

s at

30

June

-

- 1,

100

1,43

7 1,

100

1,43

7

Tota

l as

at 3

0 Ju

ne re

pres

ente

d by

Fa

ir va

lue

- -

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3 1,

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1,98

3 1,

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Wor

k in

pro

gres

s -

- -

463

- 46

3 A

ccum

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epre

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and

impa

irmen

t -

- (8

83)

(728

) (8

83)

(728

) To

tal a

s at

30

June

-

- 1,

100

1,43

7 1,

100

1,43

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net

impa

irmen

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3 m

illion

is re

cogn

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016

for p

lant

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equ

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2015

:$0)

.


PAGE 115


Accounting Policy

Revaluation

All property, plant and equipment assets were formally valued in 2015 by independent qualified valuers and were assessed for impairment in 2016.

Depreciation

Depreciation rates applying to each class of depreciable asset are based on the following useful lives for the current and prior reporting periods:

Buildings excluding leasehold improvements 38 to 50 years

Leasehold improvements Lease term

Property, plant and equipment 4 to 112 years


PAGE 116


2016 2015 $'000 $'000 Note 4.2B: Prepayments

Prepayments 9,690 6,120 Total prepayments 9,690 6,120 Prepayments expected to be recovered

No more than 12 months 7,097 607 More than 12 months 2,593 5,513

Total prepayments 9,690 6,120

Administered – Payables 4.3.Note 4.3A: Suppliers Trade creditors and accruals 7,086 11,490 Total suppliers 7,086 11,490

Settlement is usually made within 30 days. Supplier payables are expected to be settled in no more than 12 months. Note 4.3B: Grants Public sector

Australian Government entities (related parties) 675 623 Local Governments - 144 State and Territory Governments - 17

Private sector Commercial entities 55 3,325 Non-profit organisations 18,877 14,531

Total grants 19,607 18,640

All grants payables are expected to be settled in no more than 12 months. Note 4.3C: Other payables Concessional loan commitment 13,848 - Payables to Commonwealth entities 399 - Fringe benefits tax 99 44 Salaries, wages and superannuation 5 59 Lease liability 30 46 Total other payables 14,381 149

All other payables are expected to be settled in no more than 12 months.


PAGE 117


Administered – Other Provisions 4.4.Note 4.4A: Other provisions Reconciliation of movements in other provisions

Make good

provision Other

provision Total $’000 $’000 As at 1 July 2015 129 98 227 Amounts reversed (41) - (41) Unwinding of discount or change in discount rate 1 - 1 Total as at 30 June 2016 89 98 187

2016 2015 $'000 $'000 Other provisions expected to be settled


Total other provisions 187 227


PAGE 118

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PAGE 119

DEP

AR

TMEN

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MIN

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PAGE 120

DEP

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1 D

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umm

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5 m

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butio

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Man

dato

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Tele

com

mun

icat

ion

Dat

a R

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tion;

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f fun

ds fo

r the

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sitio

n pr

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t; $2

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on s

avin

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rt th

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ion

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16 m

illion

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t of f

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l Tra

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ion

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ce.

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inis

tere

d Se

ctio

n 51

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rant

ines

: $11

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on c

ontri

butio

n to

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geno

us C

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unity

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l ser

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s to

the

Atto

rney

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eral

's D

epar

tmen

t and

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ng

to th

e So

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Aus

tralia

n G

over

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t for

mun

icip

al s

ervi

ces

in re

mot

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mun

ities

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n 51

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rant

ines

hav

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ised

as

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duct

ion

in to

tal a

ppro

pria

tion

repo

rted

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enta

l

Am

ount

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riate

d fo

r dep

artm

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l app

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iatio

ns fo

r the

yea

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just

ed fo

r any

form

al a

dditi

ons

and

redu

ctio

ns) a

re re

cogn

ised

as

reve

nue

from

Gov

ernm

ent w

hen

PM

&C

gai

ns c

ontro

l of t

he a

ppro

pria

tion,

exc

ept f

or c

erta

in a

mou

nts

that

rela

te to

act

iviti

es th

at a

re re

cipr

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in n

atur

e, in

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ch c

ase

reve

nue

is re

cogn

ised

onl

y w

hen

it ha

s be

en e

arne

d. A

ppro

pria

tions

rece

ivab

le a

re re

cogn

ised

at t

heir

nom

inal

am

ount

s.


PAGE 121


Note 5.1B: Unspent annual appropriations ('recoverable GST exclusive')

Authority 2016 2015 $'000 $'000

Departmental1,2 Appropriation Act (No.1) 2013-14 5,000 5,000 Appropriation Act (No.6) 2013-14 Non Operating Equity Injection - 4,861 Appropriation Act (No.1) 2014-15 43,446 130,618 Appropriation Act (No.1) 2014-15 - cash held by the department - 12,063 Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) 2,316 13,991 Appropriation Act (No 2) 2014-15 - Non Operating Equity Injection 5,236 5,887 Appropriation Act (No.3) 2014-15 - 1,912 Appropriation Act (No 4) 2014-15 - Non Operating Equity Injection - 318 Appropriation Act (No.1) 2015-16 79,595 - Appropriation Act (No.1) 2015-16 - cash held by the department 5,031 - Appropriation Act (No.1) 2015-16 - Capital Budget (DCB) 8,203 - Appropriation Act (No 2) 2015-16 - Non Operating Equity Injection 3,096 - Total departmental 151,923 174,650 Administered3 Appropriation Act (No.1) Capital Budget (ACB) 2012-13 240 240 Appropriation Act (No.1) 2013-14 10 10 Appropriation Act (No.5) 2013-14 10 24,263 Appropriation Act (No.6) SPP 2013-14 23,837 23,837 Appropriation Act (No.1) 2014-15 26,497 35,700 Appropriation Act (No.1) 2014-15 - cash held by the department - 14,563 Appropriation Act (No.1) Capital Budget (ACB) 2014-15 140 140 Appropriation Act (No.2) SPP 2014-15 1 1 Appropriation Act (No.1) 2015-16 - cash held by the department 20,094 - Appropriation Act (No.1) 2015–16 9,888 - Appropriation Act (No.1) Capital Budget (ACB) 2015-16 252 - Appropriation Act (No.3) 2015–16 19,206 - Appropriation Act (No.2) SPP 2015-16 1,059 - Total administered 101,234 98,754

1 The current year departmental unspent annual appropriation is shown inclusive of quarantines which will reduce Appropriation Act (No.1) 2015-16 by $1.190 million and Appropriation Act (No.1) 2014-15 Capital Budget (DCB) by $1.500 million, but are still available at law. 2 The current and prior year departmental unspent annual appropriation is shown inclusive of quarantines against Appropriation Act (No.1) 2013-14 of $5.000 million, Appropriation Act (No.1) 2014-15 of $41.446 million and $2.000 million from prior year recognised through contributed equity against Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) of $0.816 million. 3 The prior year administered unspent annual appropriation is shown inclusive of Section 51 permanent quarantines against Appropriation Act (No.1) 2014-15 of $26.497 million, Appropriation Act (No.1) Capital Budget (ACB) 2014-15 of $0.140 million and Appropriation Act (No.2) SPP 2014-15 of $0.001 million.


PAGE 122


Note 5.1C: Special appropriations ('recoverable GST exclusive')

Authority

Appropriation applied 2016 2015 $'000 $'000

Aboriginal Land Rights (Northern Territory) Act 1976 208,253 165,268 Public Governance, Performance and Accountability Act 2013 s77 6 - Higher Education Support Act 2003 51,333 51,152 Total 259,592 216,420


PAGE 123

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PAGE 125


1Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2008/13 Purpose: This account was created to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth. This account is non-interest bearing and the balance is held in the Official Public Account. 2Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Corporations (Aboriginal and Torres Strait Islander) Act 2006; section 551-20 Purpose: To administer unclaimed monies received by the Registrar of Aboriginal and Torres Strait Islander Corporations. This account is non-interest bearing and the balance is held in the Official Public Account. 3Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2003/05 Purpose: To provide a source of finance for the liability for the Superannuation Productivity Benefit entitlements owing to tutors contracted under the Aboriginal Tutorial Assistance Scheme (ATAS). This account is non-interest bearing and the balance is held in the Official Public Account. 4Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2010/06 Purpose: To support the implementation of the Remote Service Delivery National Partnership Agreement. It will provide the Australian Government with the capacity to address high priority projects in a timely way and support projects identified through the local implementation planning process. This account is non-interest bearing and the balance is held in the Official Public Account. 5Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2001/11 (amended by Determination 2006/10) Purpose: developing best practice policies and guidelines in spatial data management in Australia and New Zealand and assisting the growth of a spatial information industry in Australia and New Zealand. This account is non-interest bearing and the balance is held in the Official Public Account. 6Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Aboriginal Land Rights (Northern Territory) Act 1976; sections 62, 63, 64 and 65 Purpose: For the receipt and disbursement of the equivalent of mining royalty monies derived from mining operations on Aboriginal land in the Northern Territory. This account is interest bearing. 7Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Section 192W of the Aboriginal and Torres Strait Islander Act 2005 Purpose: To provide a secure stream of income to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base. This account is interest bearing. Aboriginal Advancement Account The Aboriginal Advancement Account was established under section 80 of the PGPA Act. The purpose of the account is for furthering the social and economic advancement of Aboriginal people living in Victoria. There were no transactions credited or debited to the special account during 2015 and 2016.


PAGE 126


Net Cash Appropriation Arrangements 5.3. 2016 2015 $'000 $'000 Total comprehensive income/(loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 (10,239) 14,513 Plus: depreciation/amortisation expenses previously funded through revenue appropriation (21,092) (28,225)

Total comprehensive loss - as per the Statement of Comprehensive Income (31,331) (13,712) 1 From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

Cash Flow Reconciliation 5.4.Note 5.4A: Cash flow reconciliation Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement Cash and cash equivalents as per Cash Flow Statement 5,031 12,063 Statement of Financial Position 5,031 12,063 Discrepancy - - Reconciliation of net cost of services to net cash from/(used by) operating activities

Net cost of services (410,367) (546,057) Revenue from Government 384,202 528,523

Adjustments for non-cash items

Net loss from sale of assets 506 31 Depreciation and amortisation 21,092 28,225 Net write-down of non-financial assets 1,734 418 Assets first recognised (38) - Reclassification of non-financial assets - 565

Movements in assets and liabilities Assets

Increase in net receivables 2,765 17,206 (Increase)/decrease in accrued revenue 1,162 (3,238) (Increase)/decrease in prepayments (596) 3,609

Liabilities Increase/(decrease) in employee provisions 3,485 (3,303) Decrease in supplier payables (12,176) (9,343) Increase/(decrease) in grants payable (370) 370 Decrease in other payables (7,538) (13,075) Decrease in other provisions (82) (112)

Net cash from/(used by) operating activities (16,221) 3,819


PAGE 127


2016 2015 $'000 $'000 Note 5.4B: Administered cash flow reconciliation Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement Cash and cash equivalents as per Administered Cash Flow Statement 20,094 17,739

Administered Schedule of Assets and Liabilities 20,094 17,739 Discrepancy - - Reconciliation of net cost of services to net cash from operating activities Net cost of services (1,536,823) (1,465,081) Adjustments for non-cash items

Depreciation/amortisation 373 332 Losses from asset sales - 821 Net write down of non-financial assets 3 - Assets received free of charge - (818) Interest on investments recognised in investing (76,117) (86,688)

Movements in assets and liabilities Assets

Decrease in net receivables 10,526 8,195 Decrease/(increase) in prepayments (3,570) 3,202

Liabilities Increase/(decrease) in supplier payables (4,404) 2,147 Increase/(decrease) in grants payable 967 (183) Increase/(decrease) in other payable 14,234 (2,387) Increase/(decrease) in employee provisions 83 (53) Decrease in former Governors-General benefits (840) (985) Decrease in other provisions (40) (97)

Net cash used by operating activities (1,595,608) (1,541,595) Accounting Policy

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

(a) Cash on hand.

(b) Demand deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

(c) Cash in special accounts.


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6. People This section describes a range of employment and post employment benefits provided to our people.

Employee Provisions 6.1. 2016 2015 $'000 $'000 Note 6.1A: Employee provisions Annual leave 25,073 25,680 Long service leave 51,178 47,078 Total employee provisions 76,251 72,758

Employee provisions expected to be settled

No more than 12 months 21,684 21,926 More than 12 months 54,567 50,832

Total employee provisions 76,251 72,758 Accounting policy and significant accounting judgements

Employee benefits

Liabilities for ‘short-term employee benefits’ and termination benefits due within 12 months of the end of the reporting period are measured at their nominal amounts.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of PM&C is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including PM&C’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2015. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

A liability is made for separation and redundancy benefit payments. PM&C recognises a liability for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

PM&C's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

PM&C makes employer contributions to the employees' superannuation scheme. For Commonwealth defined benefits schemes, these rates are determined by an actuary to be sufficient to meet the current cost to the Government. PM&C accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.


PAGE 129


2016 2015 $'000 $'000 Note 6.1B: Administered employee provisions

Annual leave 149 112 Long service leave 206 160 Total employee provisions 355 272 Employee provisions expected to be settled


Total employee provisions 355 272 Accounting Policy

The expense and liabilities for services rendered by staff employed in the Prime Minister’s Official Establishments and in support of former Governors-General are recognised as administered items. Accounting policies are consistent with those applied to departmental items. Note 6.1C: Non-cash benefits - former Governors-General benefits Non-cash benefits - former Governors-General 16,037 17,509 Total non-cash benefits - former Governors-General benefits 16,037 17,509

The amounts recognised in the Administered Schedule of Assets and Liabilities are as follows: Present value of unfunded obligations 16,037 17,509 Net liability in the Administered Schedule of Assets and Liabilities 16,037 17,509 Amounts in the Administered Schedule of Assets and Liabilities: Liabilities 16,037 17,509 Net liability in the Administered Schedule of Assets and Liabilities 16,037 17,509

The amounts recognised in the Administered Schedule of Comprehensive Income are as follows:

Finance costs 455 547 Expense 455 547 Net actuarial (gains)/losses recognised in the Administered Reconciliation Schedule (632) 1,903 Changes in the value of the defined benefit obligations are as follows: Net liability at 1 July 17,509 16,594 Finance costs 455 547 Actuarial losses/(gains) (632) 1,903 Benefits paid (1,295) (1,535) Net liability at 30 June 16,037 17,509 Principal actuarial assumptions at the reporting date (expressed as weighted averages): Discount rate at 30 June 1.90% 2.60% Future salary increases 3.50% 4.00% Inflation rate 2.50% 2.50% Rate of expenditure slow down with age 3.00% 3.00%


PAGE 130


Accounting Policy

Former Governors-General benefits

PM&C has responsibility for the administration of non-cash benefits provided to former Governors-General. These entitlements are regarded as post-employment benefits and represent the provision of office facilities, administrative support and transport. A future liability for these benefits is recognised in the administered accounts.


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

Senior Management Personnel Remuneration 6.2. 2016 2015 $'000 $'000 Short-term employee benefits

Salary 22,720 23,493 Other1 3,322 2,903

Total short-term employee benefits 26,042 26,396 Post-employment benefits

Superannuation 5,004 5,483 Total post-employment benefits 5,004 5,483 Other long-term employee benefits

Annual leave 2,011 1,999 Long-service leave 642 640

Total other long-term benefits 2,653 2,639 Termination benefits

Termination benefits 667 1,264 Total termination benefits 667 1,264 Total senior executive remuneration expenses 34,366 35,783

The total number of senior management personnel included in the above table is 160 (2015: 183). Included in that number is 85 staff who worked for the full-year and 75 staff who worked a part-year (2015: 93 and 90). Senior management on acting arrangements are included where the length of the arrangement is longer than 6 months. 1 The comparative has been restated to align with current year methodology. .


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7. Managing Uncertainties This section analyses how the Department of the Prime Minister and Cabinet manages financial risks within its operating environment.

Contingent Assets and Liabilities 7.1.Note 7.1A: Contingent assets and liabilities Unquantifiable contingent liabilities - claims for damages and costs Proceedings have commenced against the Australian Government by former residents of the Retta Dixon Home in the Northern Territory. The outcome of that litigation cannot be predicted (2015: Nil). Accounting Policy

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when the probability of settlement is greater than remote.

Note 7.1B: Administered contingent assets and liabilities Quantifiable contingent liabilities - claims for damages and costs The Australian Government has appealed a decision by the Federal Court requiring the payment of a grant to the Machado Joseph Disease (MJD) Foundation in the amount of $10.000 million. An outcome is expected to be known early in 2016-17, however it is not possible to determine the financial effect of the outcome on other grants at this time. (2015: Nil).

Financial Instruments 7.2. 2016 2015 $'000 $'000 Note 7.2A: Categories of financial instruments Financial assets Loans and receivables

Cash and cash equivalents 5,031 12,063 Goods and services receivables (net) 4,330 1,685 Accrued revenue 4,235 5,397

Total loans and receivables 13,596 19,145 Total financial assets 13,596 19,145 Financial liabilities Financial liabilities measured at amortised cost

Trade creditors and accruals 22,812 31,714 Grants - 370

Total financial liabilities measured at amortised cost 22,812 32,084 Total financial liabilities 22,812 32,084

Note 7.2B: Net gains or losses on financial assets Loans and receivables

Impairment 89 78 Net losses on loans and receivables 89 78 Net loss on financial assets 89 78

Note 7.2C: Fair value of financial instruments The fair value of financial instruments approximates their carrying amounts.


PAGE 132


Note 7.2D: Credit risk PM&C is exposed to minimal credit risk as loans and receivables are comprised of cash, goods and services receivable and accrued revenue. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of these outstanding receivables, 2016: $4.442 million (2015: $1.763 million). PM&C has assessed the risk of the default on payment and has allocated $0.112 million to an impairment allowance account (2015: $0.078 million). PM&C holds no collateral to mitigate against credit risk. Note 3.1A provides aging of gross receivables past due and an analysis of impaired receivables.

Note 7.2E: Liquidity risk PM&C’s financial liabilities are suppliers and grants payable. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the Department (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The maturities for non-derivative financial liabilities of PM&C are within one year in both the current and prior years.

Note 7.2F: Market risk PM&C holds basic financial instruments that do not expose the Department to interest risk, currency risk or other price risk.

Accounting Policy

Impairment of financial assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial liabilities

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Financial liabilities are recognised and derecognised upon ‘trade date’.


The relevant government bond rate has been used to discount non-current liabilities.


PAGE 133


Administered – Financial Instruments 7.3. 2016 2015 $'000 $'000 Note 7.3A: Categories of financial instruments Financial assets Held-to-maturity investments Bank term deposits 2,549,016 2,480,243 Total held-to-maturity investments 2,549,016 2,480,243 Loans and receivables Cash and cash equivalents 20,094 14,563 Goods and services receivable 14 72 Interest receivable 32,666 30,920 Grants receivable (net) 5,428 11,805 Total loans and receivables 58,202 57,360 Available for sale financial assets

Aboriginal Hostels Limited 150,419 146,282 Anindilyakwa Land Council 10,309 8,639 Central Land Council 37,113 35,559 Indigenous Land Corporation 295,301 217,821 Indigenous Business Australia 1,242,448 1,185,459

National Australia Day Council Limited 1,713 1,168 Northern Land Council 9,446 10,105 Outback Stores Pty Ltd 43,082 41,496 Tiwi Land Council 1,351 1,613 Torres Strait Regional Authority 75,568 73,876 Wreck Bay Aboriginal Community Council 55,588 55,711

Total available for sale financial assets 1,922,338 1,777,729 Total financial assets 4,529,556 4,315,332 Financial liabilities Financial liabilities measured at amortised cost

Trade creditors and accruals 7,086 11,490 Grants 19,607 18,640 Other payables 14,247 -



PAGE 134


2016 2015 $'000 $'000 Note 7.3B: Net gains or losses on financial instruments Financial assets Held-to-maturity investments Interest revenue 75,815 86,325 Net gains on held-to-maturity investments 75,815 86,325 Loans and receivables Interest revenue 302 363

Reversal of impairment 38 - Impairment (8,051) (11,248) Net losses on loans and receivables (7,711) (10,885) Net gain on financial assets 68,104 75,440 Financial liabilities Financial liabilities measured at amortised cost

Concessional loan discount (13,848) - Net loss on financial liabilities measured at amortised cost (13,848) - Net loss on financial liabilities (13,848) -

Note 7.3C: Fair value of financial instruments The fair value of administered financial instruments approximates their carrying value.

Note 7.3D: Credit risk The administered activities of PM&C are not exposed to a high level of credit risk as the majority of financial assets are cash and cash equivalents, and trade receivables. The maximum amount of credit risk is the risk that arises from potential default of a debtor. This amount is equal to the amount of these outstanding trade receivables, 2016: $0.014 million (2015: $0.072 million). PM&C has assessed the risk of the default on payment of receivables and has allocated amounts to an impairment allowance in relation to grant receivables, 2016: $8.606 million (2015: $11.473 million). PM&C holds no collateral to mitigate against administered credit risk. PM&C has no significant exposures to any concentrations of credit risk.


PAGE 135


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

Not past due nor

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Not past due nor

impaired

Past due or

impaired Past due

or impaired 2016 2015 2016 2015 $'000 $'000 $'000 $'000 Bank term deposits 2,549,016 2,480,243 - - Cash and cash equivalents 20,094 14,563 - - Goods and services receivable 14 72 - - Interest receivable 32,666 30,920 - - Grants receivable 3,138 5,532 10,896 17,746 Equity interest in:

Aboriginal Hostels Limited 150,419 146,282 - - Anindilyakwa Land Council 10,309 8,639 - - Central Land Council 37,113 35,559 - - Indigenous Land Corporation 295,301 217,821 - - Indigenous Business Australia 1,242,448 1,185,459 - - National Australia Day Council Limited 1,713 1,168 - - Northern Land Council 9,446 10,105 - - Outback Stores Pty Ltd 43,082 41,496 - - Tiwi Land Council 1,351 1,613 - - Torres Strait Regional Authority 75,568 73,876 - - Wreck Bay Aboriginal Community Council 55,588 55,711 - -

Total 4,527,266 4,309,059 10,896 17,746 Note 4.1B provides aging of gross receivables past due and an analysis of impaired receivables. Aging of financial assets that were past due but not impaired in 2016 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Grants receivable 1,755 337 185 13 2,290 Total 1,755 337 185 13 2,290 Aging of financial assets that were past due but not impaired in 2015 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Grants receivable 1,127 112 494 4,540 6,273 Total 1,127 112 494 4,540 6,273


PAGE 136


Note 7.3E: Liquidity risk PM&C’s administered financial liabilities are supplier and grant payables and a concesional loan comittment. The exposure to liquidity risk is based on the notion that PM&C will encounter difficulty in meeting its obligations associated with administered financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to PM&C (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The ATSILA has sufficient capital base available to meet its obligations when they fall due. The ABA investment policy ensures sufficient cash is available to meet payments as they fall due. All non-derivative financial liabilities are expected to mature within one year.

Note 7.3F: Market risk PM&C holds basic financial instruments, available for sale and held-to-maturity investments that do not expose the entity to certain market risks. PM&C is not exposed to currency risk, other price risk or interest rate risk.

Accounting Policy

Financial assets

PM&C classifies its financial assets in the following categories:

• Held-to-maturity investments

• Available for sale financial assets

• Loans and receivables.

All financial assets are expected to be recovered within 12 months except where indicated.

Interest is recognised by applying the effective interest rate.

Loans and receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through the Administered Schedule of Comprehensive Income.


PAGE 137

DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2016

Fai

r Val

ue M

easu

rem

ent

7.4.

The

follo

win

g ta

bles

pro

vide

an

anal

ysis

of a

sset

s th

at a

re m

easu

red

at fa

ir va

lue.

Th

e di

ffere

nt le

vels

of t

he fa

ir va

lue

hier

arch

y ar

e de

fined

bel

ow.

Leve

l 1:

Quo

ted

pric

es (u

nadj

uste

d) in

act

ive

mar

kets

for i

dent

ical

ass

ets

or li

abilit

ies

that

the

entit

y ca

n ac

cess

at m

easu

rem

ent d

ate.

Le

vel 2

: In

puts

oth

er th

an q

uote

d pr

ices

incl

uded

with

in L

evel

1 th

at a

re o

bser

vabl

e fo

r the

ass

et o

r lia

bilit

y, e

ither

dire

ctly

(i.e

. as

pric

es) o

r ind

irect

ly (i

.e. d

eriv

ed fr

om p

rices

). Le

vel 3

: In

puts

for t

he a

sset

or l

iabi

lity

that

are

not

bas

ed o

n ob

serv

able

mar

ket d

ata

(uno

bser

vabl

e in

puts

).

Not

e 7.

4A: F

air v

alue

mea

sure

men

ts, v

alua

tion

tech

niqu

es a

nd in

puts

use

d Fa

ir va

lue

mea

sure

men

ts a

t the

end

of t

he

repo

rtin

g pe

riod

For L

evel

s 2

and

3 fa

ir va

lue

mea

sure

men

ts

2016

20

15

Cat

egor

y (L

evel

1, 2

or

31 ) Va

luat

ion

Tech

niqu

e(s)

and

Inpu

ts U

sed

$'00

0 $'

000

12,6

29

19,6

34

2 Ad

just

ed m

arke

t tra

nsac

tions

(pric

e pe

r squ

are

met

re)

Non

-fina

ncia

l ass

ets2

La

nd

Bui

ldin

gs

29,7

20

36,1

58

2 Ad

just

ed m

arke

t tra

nsac

tions

Bu

ildin

gs

10,9

28

15,8

63

3 R

epla

cem

ent C

ost

Leas

ehol

d im

prov

emen

ts

26,9

11

28,8

50

3 R

epla

cem

ent C

ost

Prop

erty

, pla

nt a

nd e

quip

men

t 10

,619

18

,910

3

Con

sum

ed e

cono

mic

ben

efit/

Obs

oles

cenc

e of

ass

et

Tota

l non

-fina

ncia

l ass

ets

90,8

07

119,

415

3,51

0 15

0 2

Adju

sted

mar

ket t

rans

actio

ns

Ass

ets

held

for s

ale3

La

nd

Bui

ldin

gs

5,94

4 28

0 2

Adju

sted

mar

ket t

rans

actio

ns

Tota

l ass

ets

held

for s

ale

9,45

4 43

0


PAGE 138

DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2016 1 Recurring and non-recurring Level 3 fair value measurements - valuation process PM&C procured valuation services from valuation experts and relied on the valuations made by these experts in 2016. The experts provided written assurance that the models developed to value assets are in compliance with accounting standards. PM&C tests the procedures of the valuation model as an internal management review at least once every 12 months. PM&C has a rolling revaluation plan in place which ensures all assets are formally revalued at least once every three to five years. If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation.

The valuation technique for portable building assets has changed during the year from the replacement cost method to the adjusted market transaction method. This change is due to the downturn in the mining industry increasing the number of portable building assets currently available for sale and therefore providing a better basis to measure fair value.

Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Professional judgement has been applied in calculating the consumed economic benefit/asset obsolescence relevant to the asset under consideration.

3 Assets held for sale PM&C is currently marketing 20 residential properties (staff housing) that are no longer essential to operational requirements. The assets are measured at the lesser of their carrying amount and fair value less cost to sell and are valued at a non-recurring basis. All other assets are valued on a recurring basis.

2 Fair value measurement - highest and best use PM&C's assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all controlled assets is considered their highest and best use.


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


PAGE 139

DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2016

Not

e 7.

4B: R

econ

cilia

tion

for r

ecur

ring

Leve

l 3 fa

ir va

lue

mea

sure

men

ts

R

ecur

ring

Leve

l 3 fa

ir va

lue

mea

sure

men

ts -

reco

ncili

atio

n fo

r ass

ets

N

on-fi

nanc

ial a

sset

s

La

nd

Bui

ldin

gs

Leas

ehol

d im

prov

emen

ts

Prop

erty

, pla

nt a

nd

equi

pmen

t To

tal

20

16

2015

20

16

2015

20

16

2015

20

16

2015

20

16

2015

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

As

at 1

Jul

y -

4,74

0 15

,863

22

,871

28

,850

31

,846

18

,910

15

,370

63

,623

74

,827

To

tal l

osse

s re

cogn

ised

in n

et c

ost o

f ser

vice

s1 -

- (1

05)

(11,

478)

(4

,924

) (6

,171

) (5

,880

) (6

,721

) (1

0,90

9)

(24,

370)

To

tal g

ains

/(los

ses)

reco

gnis

ed in

oth

er

com

preh

ensi

ve in

com

e2 -

- -

3,48

9 (1

,659

) 3,

112

(463

) 1,

104

(2,1

22)

7,70

5 P

urch

ases

-

- 6,

076

353

1,98

5 63

79

8 6,

395

8,85

9 6,

811

Rec

lass

ifica

tions

-

- (3

54)

- 2,

659

- (1

,968

) -

337

- Tr

ansf

ers

into

leve

l3 -

- -

4,70

2 -

- -

2,76

2 -

7,46

4 Tr

ansf

ers

out o

f lev

el3

- (4

,740

) (1

0,55

2)

(4,0

74)

- -

- -

(10,

552)

(8

,814

) A

dditi

ons

thro

ugh

rest

ruct

ure

- -

- -

- -

(778

) -

(778

) -

Tota

l as

at 3

0 Ju

ne

- -

10,9

28

15,8

63

26,9

11

28,8

50

10,6

19

18,9

10

48,4

58

63,6

23

1 T

hese

loss

es a

re p

rese

nted

in th

e S

tate

men

t of C

ompr

ehen

sive

Inco

me

unde

r 'D

epre

ciat

ion

and

amor

tisat

ion'

, 'Lo

sses

from

ass

et s

ales

' and

'Writ

e-do

wn

and

impa

irmen

t of

asse

ts'

2 The

se g

ains

/(los

ses)

are

pre

sent

ed in

Oth

er C

ompr

ehen

sive

Inco

me

unde

r 'C

hang

es in

ass

et re

valu

atio

n su

rplu

s'.

3 PM

&C

und

erto

ok a

n as

set v

alua

tion

proc

ess

as a

t 30

June

201

6, re

sulti

ng in

mov

emen

ts o

f a n

umbe

r of l

and

and

build

ing

asse

ts b

etw

een

leve

l 2 a

nd le

vel 3

.


PAGE 140

DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2016

Adm

inis

tere

d –

Fair

Valu

e M

easu

rem

ent

7.5.

Not

e 7.

5A: F

air v

alue

mea

sure

men

ts, v

alua

tion

tech

niqu

e an

d in

puts

use

d

Fa

ir va

lue

mea

sure

men

ts a

t the

end

of t

he re

port

ing

perio

d

20

16

2015

C

ateg

ory

(Lev

el

1, 2

or 3

) Va

luat

ion

Tech

niqu

e(s)

and

Inpu

ts U

sed1

$'

000

$'00

0 Fi

nanc

ial a

sset

s

In

vest

men

ts in

Cor

pora

te C

omm

onw

ealth

ent

ities

an

d co

mpa

nies

1,

922,

338

1,77

7,72

9 3

Cos

t app

roac

h - A

ustra

lian

Gov

ernm

ent's

pro

porti

onal

inte

rest

in th

e ne

t ass

ets

of

the

entit

ies

at b

alan

ce d

ate.

Non

-fina

ncia

l ass

ets

Prop

erty

, pla

nt a

nd e

quip

men

t 1,

100

1,43

7 3

Cos

t app

roac

h - C

onsu

med

eco

nom

ic b

enef

it/O

bsol

esce

nce

of a

sset

1

The

met

hods

and

val

uatio

n te

chni

ques

use

d fo

r the

pur

pose

of m

easu

ring

fair

valu

e of

ass

ets

and

liabi

litie

s ar

e un

chan

ged

from

the

prev

ious

repo

rting

per

iod.

R

ecur

ring

and

non-

recu

rrin

g Le

vel 3

fair

valu

e m

easu

rem

ents

- va

luat

ion

proc

ess

Inve

stm

ents

in C

orpo

rate

Com

mon

wea

lth e

ntiti

es a

nd c

ompa

nies

Fa

ir va

lue

is a

sses

sed

as th

e A

ustra

lian

Gov

ernm

ent's

pro

porti

onal

inte

rest

in th

e ne

t ass

ets

of th

e en

titie

s at

bal

ance

dat

e.

Pro

perty

, pla

nt a

nd e

quip

men

t Th

e fa

ir va

lue

of p

rope

rty, p

lant

and

equ

ipm

ent a

sset

s ha

ve b

een

take

n to

be

the

depr

ecia

ted

repl

acem

ent c

ost a

s as

sess

ed b

y an

inde

pend

ent q

ualif

ied

valu

er. R

epla

cem

ent c

ost i

s m

easu

red

by re

fere

nce

to th

e lo

wes

t cos

t of r

epla

cing

the

asse

t or r

epai

ring

the

asse

t.

Rec

urrin

g Le

vel 3

fair

valu

e m

easu

rem

ents

- se

nsiti

vity

of i

nput

s P

rope

rty, p

lant

and

equ

ipm

ent

The

sign

ifica

nt u

nobs

erva

ble

inpu

ts u

sed

in th

e fa

ir va

lue

mea

sure

men

t of t

he e

ntity

's le

aseh

old

impr

ovem

ents

ass

et c

lass

es re

late

to th

e co

nsum

ed e

cono

mic

ben

efit/

asse

t ob

sole

scen

ce. A

sig

nific

ant i

ncre

ase/

(dec

reas

e) in

this

inpu

t wou

ld re

sult

in a

sig

nific

antly

low

er/(h

ighe

r) fa

ir va

lue

mea

sure

men

t. Fa

ir va

lue

mea

sure

men

t - h

ighe

st a

nd b

est u

se

PM

&C

's a

sset

s ar

e he

ld fo

r ope

ratio

nal p

urpo

ses

and

not h

eld

for t

he p

urpo

ses

of d

eriv

ing

a pr

ofit.

The

cur

rent

use

of a

ll co

ntro

lled

asse

ts is

con

side

red

thei

r hig

hest

and

bes

t use

.


PAGE 141

DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2016

Not

e 7.

5B: R

econ

cilia

tion

for r

ecur

ring

Leve

l 3 fa

ir va

lue

mea

sure

men

ts

R

ecur

ring

Leve

l 3 fa

ir va

lue

mea

sure

men

ts -

reco

ncili

atio

n fo

r ass

ets

Fi

nanc

ial a

sset

s N

on-fi

nanc

ial a

sset

s

A

dmin

iste

red

inve

stm

ents

Pr

oper

ty, p

lant

and

equ

ipm

ent

20

16

2015

20

16

2015

$'00

0 $'

000

$'00

0 $'

000

As

at 1

Jul

y 1,

777,

729

1,67

8,03

2 1,

437

1,75

3 To

tal l

osse

s re

cogn

ised

in n

et c

ost o

f ser

vice

s1 -

- (3

37)

(1,1

57)

Tota

l gai

ns re

cogn

ised

in A

dmin

iste

red

othe

r com

preh

ensi

ve in

com

e2 14

4,60

9 99

,697

-

22

Pur

chas

es

- -

- 1

Ass

ets

rece

ived

free

of c

harg

e -

- -

818

Tota

l as

at 3

0 Ju

ne

1,92

2,33

8 1,

777,

729

1,

100

1,43

7

1 The

se lo

sses

are

pre

sent

ed in

the

Adm

inis

tere

d S

ched

ule

of C

ompr

ehen

sive

Inco

me

unde

r 'D

epre

ciat

ion'

and

'Los

ses

from

ass

et s

ales

'. 2 T

hese

gai

ns a

re p

rese

nted

in th

e A

dmin

iste

red

Rec

onci

liatio

n S

ched

ule

unde

r ‘A

dmin

iste

red

Inve

stm

ents

’ and

‘Equ

ity in

ject

ion

to C

orpo

rate

Com

mon

wea

lth e

ntiti

es a

nd

com

pani

es’.


PAGE 142


8. Other Information Assets Held in Trust 8.1.

2016 2015 $'000 $'000 Monetary assets - Cash at bank As at 1 July 122 11

Receipts 1 154 Payments (123) (43)

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

Financial assets held in trust are disclosed in Note 5.2 Special accounts in the account titled Services for Other Entities and Trust Moneys Special Account.


PAGE 143


Restructuring 8.2.

Whole of Government

Service Delivery

Policy (Public Data Policy)

Gov 2.0 and Boardlinks

Cities and the Built

Environment

Administered Australian New

Zealand Land Information

Special Account

DoCA1 DoF2 DoE3 DoCA4

$'000 $'000 $'000 $'000 FUNCTION ASSUMED Assets recognised

Cash - - - 94 Appropriation receivable 594 24 100 - Other non-financial assets - 26 - -

Total assets recognised 594 50 100 94 Liabilities recognised

Employee provisions 594 24 108 - Total liabilities recognised 594 24 108 - Net assets assumed - 26 (8) 94 Income

Recognised by the receiving entity - - 451 - Recognised by the losing entity - - 477 -

Total income assumed - - 928 - Expenses

Recognised by the receiving entity 2,444 410 937 20 Recognised by the losing entity 731 226 1,950 -

Total expenses 3,175 636 2,887 20

2016 Digital

Transformation Office DTO5

$'000 FUNCTION RELINQUISHED Assets relinquished

Property, plant and equipment 988 Total assets relinquished 988 Net assets relinquished 988

1 Whole of Government Service Delivery Policy (Public Data Policy) was assumed from the Department of Communications and Art (DoCA) during 2016 following a restructuring of administrative arrangements, effective 21 September 2015. 2 Gov 2.0 and Boardlinks was assumed from the Department of Finance (DoF) during 2016 following a restructuring of administrative arrangements, effective 21 September 2015. 3 Cities and the Built Environment was assumed from the Department of Environment (DoE) during 2016 following a restructuring of administrative arrangements, effective 18 February 2016. 4

Property, plant and equipment assets were relinquished to the Digital Transformation Office (DTO) during 2015-16, following the Government decision to establish the DTO as an Executive Agency on 29 April 2015.

5

The Administered Australian New Zealand Land Information Special Account was assumed from DoCA during 2016 following a restructuring of administrative arrangements, effective 21 September 2015.


PAGE 144

DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2016

Rep

ortin

g of

Out

com

es

8.3.

PM

&C

attr

ibut

es c

orpo

rate

sha

red

item

s ba

sed

upon

ave

rage

sta

ffing

leve

ls to

refle

ct fu

ll co

st o

f del

iver

y. T

he b

asis

of a

ttrib

utio

n in

the

tabl

e be

low

is c

onsi

sten

t with

the

basi

s us

ed fo

r th

e B

udge

t.

O

utco

me

1 O

utco

me

2 Pa

ymen

ts to

Cor

pora

te

Com

mon

wea

lth e

ntiti

es

Tota

l

2016

20

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PAGE 145

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PAGE 146

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PAGE 147

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PAGE 148

ABORIGINALS BENEFIT ACCOUNT FINANCIAL STATEMENTS

The following pages 149 to 170 contain PDFs of the Aboriginals Benefit Account financial statements for the period ended 30 June 2016. If you require assistance accessing these pages, please email [email protected]


PAGE 149


PAGE 150


PAGE 151

ABORIGINALS BENEFIT ACCOUNT STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2016


2016 2015 Notes $'000 $'000 NET COST OF SERVICES Expenses

Payments to advisory committee members 51 74 Suppliers 1.1A 584 559 Grants 1.1B 43,908 49,893 Payments for township leases 1.1C 3,836 2,150 Payments to Land Councils for administrative purposes 1.1D 49,522 42,435 Distribution to Land Councils 1.1E 62,057 49,489 Other expenses 1.1F 3,137 2,377

Total expenses 163,095 146,977 Own-Source Income Own-source revenue

Interest 1.2A 16,394 16,855 Lease rental income 1.2B 2,228 1,615 Resources received free of charge 1.2C 2,576 2,377 Other revenue 1.2D 263 66

Total own-source revenue 21,461 20,913 Gains

Gain on realisation of investment 1.2E - - Total gains - - Total own-source income 21,461 20,913 Net cost of services 141,634 126,064 Revenue from Government 1.2F 206,860 164,967 Surplus 65,226 38,903 Total comprehensive income 65,226 38,903


PAGE 152

ABORIGINALS BENEFIT ACCOUNT STATEMENT OF FINANCIAL POSITION as at 30 June 2016


2016 2015 Notes $'000 $'000 ASSETS Financial Assets

Cash and cash equivalents 3.1 19,560 14,133 Trade and other receivables 2.1A 7,464 6,457 Investments - term deposits 2.1B 551,500 490,840

Total financial assets 578,524 511,430 Non-Financial Assets

Other non-financial assets 2.2A 4,403 6,083 Total non-financial assets 4,403 6,083 Total assets 582,927 517,513 LIABILITIES Payables

Suppliers 2.3A 1,050 670 Grants 2.3B 494 1,207 Other payables 2.3C 1,249 728

Total payables 2,793 2,605 Provisions

Other provisions 2.4A 98 98 Total provisions 98 98 Total liabilities 2,891 2,703 Net assets 580,036 514,810 EQUITY Retained surplus 580,036 514,810 Total equity 580,036 514,810


PAGE 153

ABORIGINALS BENEFIT ACCOUNT STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2016


2016 2015 Notes $'000 $'000 TOTAL EQUITY - RETAINED EARNINGS Opening balance Balance carried forward from previous period 514,810 475,907 Adjusted opening balance 514,810 475,907 Comprehensive income Surplus for the period 65,226 38,903 Total comprehensive income 65,226 38,903 Closing balance as at 30 June 2016 580,036 514,810


PAGE 154

ABORIGINALS BENEFIT ACCOUNT CASH FLOW STATEMENT for the period ended 30 June 2016


2016 2015 Notes $'000 $'000 OPERATING ACTIVITIES Cash received

Appropriations 207,285 164,229 Net GST received 4,053 5,067 Lease rental receipts 2,440 1,615


Committee members 52 76 Suppliers 547 522 Grants 48,918 56,343 Payments for township leases 1,364 1,866 Payments to Land Councils for administrative purposes 49,427 42,327 Distributions to Land Councils 62,185 49,208 Other 350 -

Total cash used 162,843 150,342 Net cash from operating activities 3.2 50,935 20,569 INVESTING ACTIVITIES Cash received

Proceeds from realisation of investments 537,340 743,340 Interest on investments 15,152 15,995


Investments 598,000 783,340 Total cash used 598,000 783,340 Net cash used by investing activities (45,508) (24,005) Net increase / (decrease) in cash held 5,427 (3,436) Cash and cash equivalents at the beginning of the reporting period 14,133 17,569 Cash and cash equivalents at the end of the reporting period 3.1 19,560 14,133


PAGE 155

ABORIGINALS BENEFIT ACCOUNT NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2016

Overview ............................................................................................................................................. 157

1. Financial Performance .................................................................................................................... 159

1.1. Expenses ................................................................................................................................. 159

1.2. Own-Source Revenue and Gains ............................................................................................ 161

2. Financial Position ............................................................................................................................ 164

2.1. Financial Assets ....................................................................................................................... 164

2.2. Non-Financial Assets ............................................................................................................... 164

2.3. Payables .................................................................................................................................. 164

2.4. Other Provisions ....................................................................................................................... 165

3. Funding ........................................................................................................................................... 166

3.1. Special Accounts ...................................................................................................................... 166

3.2. Cash Flow Reconciliation ......................................................................................................... 167

4. Managing Uncertainties .................................................................................................................. 168

4.1. Contingent Assets and Liabilities ............................................................................................. 168

4.2. Financial Instruments ............................................................................................................... 168


PAGE 156


Overview Objectives of the Aboriginals Benefit Account The Aboriginals Benefit Account (ABA) is legislated under Part VI of the Aboriginal Land Rights (Northern Territory) Act 1976 (the ALRA) and is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The ABA is managed by the Australian Government. The objective of the ABA is to receive and disburse statutory royalty equivalent monies derived from mining on Aboriginal land in the Northern Territory for the benefit of Aboriginal people living in the Northern Territory. The continued existence of the ABA in its present form is dependent on payments from consolidated revenue of royalty equivalent receipts into the special account under the ALRA and Government policy on continuing appropriations by Parliament for the ABA’s administration. Basis of preparation of the financial statements The ABA’s activities are classified as administered activities carried out by the Department of the Prime Minister and Cabinet (PM&C) on behalf of the Australian Government and are reported in PM&C's administered financial statements for the period 1 July 2015 to 30 June 2016. In addition to being consolidated into PM&C's financial statements, the ABA prepares separate audited financial statements as required by the ALRA. The Minister for Finance has granted ABA an exemption under the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR). The exemption applies to the following requirements of the FRR:

(d) Sections 9, 32 and 33 of the FRR. The ABA is required to present its administered activities in departmental format, in accordance with current practice.

(e) Section 34 of the FRR to the extent that ABA does not have any defined outcomes. (f) Divisions 2, 3, 4 and 5 of Part 6 of the FRR to the extent that ABA has no appropriation transactions

and balances other than through its special account.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or financial position. The financial statements are presented in Australian dollars. New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date as stated in the standard. There are no new standards, revised standards, amended standards or interpretations that were issued by the Australian Accounting Standards Board (AASB) prior to the sign off date that are applicable to the current reporting period and have a material financial impact on the ABA. Future Australian Accounting Standard Requirements There are no new standards, revised standards, amended standards or interpretations that have been issued by the AASB prior to the sign off date that are applicable to the future reporting period and are expected to have a future material financial impact on the ABA.


PAGE 157


Taxation The ABA is exempt from all forms of taxation except Mining Withholding Tax (MWT), Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). MWT is payable in respect of payments made from royalty equivalents credited to the ABA pursuant to section 63 of the ALRA. In accordance with the Taxation Laws Amendment Act (No. 3) 1994, the rate of MWT payable in respect of the payments made from royalty equivalents credited to the ABA pursuant to section 63 of the ALRA, is 4% (2015: 4%). GST is payable on purchases made by the ABA under subsection 64(4) and 64(6) of the ALRA. These amounts are recoverable from the Australian Taxation Office (ATO). Compliance with statutory conditions for payments from the consolidated revenue fund The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements. During 2015-16 PM&C reviewed the ABA’s exposure to the risk of not complying with statutory conditions on payments from appropriations, namely section 83 of the Constitution. The risk profile and internal controls to manage this risk continue to remain appropriate. Total ABA cash expenditure for 2015-16 was $158.790 million. Two payments totalling $0.296 million made in 2015-16 from the ABA under section 64(3) of the ALRA contravened section 83 of the Constitution due to erroneous reporting by mining companies of royalties. Payments are required to be made out of the ABA based on royalties received by the Northern Territory or Australian Governments. The contraventions occurred when the royalties upon which the payments were based had been estimated at a value greater than the eventual actual. Legislation has been prepared, and is awaiting presentation to Parliament, to reduce the risks of non-compliance associated with these payments to an acceptably low level. Both payments were technical contraventions of section 83, despite the payments having been made in accordance with the requirements of section 64(3) of the ALRA. Of the overpayment, $0.003 million has been recovered through reduction of subsequent payments and the remaining $0.293 million will be offset against future payments. Overpayments from previous years of $0.169 million were recovered during the year. Significant accounting judgements and estimates No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities. Events after the reporting period There are no known events occurring after the reporting period that could impact on the financial statements.


PAGE 158


1. Financial Performance This section analyses the financial performance of the Aboriginals Benefit Account for the year ended 30 June 2016. 1.1. Expenses 2016 2015 $'000 $'000 Note 1.1A: Suppliers Services rendered

ABA Stores Infrastructure 584 559 Total services rendered 584 559

Note 1.1B: Grants Public sector

State and Territory Governments 431 1,004 Private sector

Non-profit organisations 24,713 29,596 Stores Infrastructure Project 17,626 17,921 Mining Withholding Tax 1,138 1,372

Total grants 43,908 49,893 Accounting Policy

The ABA makes payments to or for the benefit of Aboriginals living in the Northern Territory under subsection 64(4) of the ALRA. MWT is payable on grant payments made from royalty equivalents credited to the ABA pursuant to section 63 of the ALRA.

MWT is not payable on grant payments made from other income.

Note 1.1C: Payments for township leases Office of township leasing administrative expenses 2,027 1,445 Payments to township leases – amortisation of introductory payments 1,809 692 Mining Withholding Tax - 13 Total payments for township leases 3,836 2,150


PAGE 159


Office of Executive Director Township Leasing

The Office of Township Leasing (OTL) is headed by the Executive Director of Township Leasing, a statutory appointment under the ALRA. The Executive Director of Township Leasing is responsible for managing, on behalf of the Australian Government, any township leases entered into with Indigenous communities in the Northern Territory as specified under section 19A of the ALRA. The OTL manages the head lease over the specified township and negotiates any sub-leasing to commercial entities, government agencies, community organisations and others.

Expenses related to incentive payments for township head leases in the Northern Territory are:

• An amount of $5.000 million was paid as an introductory payment for a 99 year lease for the Wurrumiyanga (formerly known as Nguiu) Head Lease on the Tiwi Islands. On 3 March 2014 the Minister approved (under Section 27(3) of the ALRA), a deed of variation to this lease; it was subsequently reduced by $0.600 million.

• An amount of $4.500 million was paid as an introductory payment for a 40 plus 40 year lease for the Groote Head Lease on Groote Eylandt.

• An amount of $1.800 million was paid as an introductory payment for a 99 year lease for the Milikapiti Township under the Milikapiti & Wurankuwu Head Lease on the Tiwi Islands.

• An amount of $0.200 million was paid as an introductory payment for a 99 year lease for the Wurankuwu Township under the Milikapiti and Wurankuwu Head Lease on the Tiwi Islands.

2016 2015 $'000 $'000 Note 1.1D: Payments to land councils for administrative purposes Subsection 64(1) payments:

Northern Land Council 22,638 18,592 Mining Withholding Tax 906 744

Sub-total Northern Land Council 23,544 19,336

Central Land Council 18,211 16,278 Mining Withholding Tax 728 651

Sub-total Central Land Council 18,939 16,929

Tiwi Land Council 2,875 2,179 Mining Withholding Tax 115 87

Sub-total Tiwi Land Council 2,990 2,266

Anindilyakwa Land Council 3,893 3,754 Mining Withholding Tax 156 150

Sub-total Anindilyakwa Land Council 4,049 3,904 Total payments associated with land councils administration 49,522 42,435

Accounting Policy

Land Councils obtain funding on a workload basis in accordance with subsection 64(1) of the ALRA. Estimates for funding are submitted to the Minister for Indigenous Affairs for approval and are distributed to Land Councils on a quarterly basis during the year.


PAGE 160


2016 2015 $'000 $'000 Note 1.1E: Distribution to land councils Subsection 64(3) payments:

Northern Land Council 15,472 10,906 Mining Withholding Tax 645 454

Sub-total Northern Land Council 16,117 11,360

Tiwi Land Council - 394 Mining Withholding Tax - 16

Sub-total Tiwi Land Council - 410

Central Land Council 17,532 5,344 Mining Withholding Tax 730 223

Sub-total Central Land Council 18,262 5,567

Anindilyakwa Land Council 26,571 30,866 Mining Withholding Tax 1,107 1,286

Sub-total Anindilyakwa Land Council 27,678 32,152 Total land councils distributions 62,057 49,489

Accounting Policy

In accordance with subsection 64(3) and 35(2) of the ALRA, 30% of the royalty equivalents are paid to the Land Councils for distribution to Aboriginal associations, communities or groups, for the benefit of those Aboriginal people who are affected by mining operations.

Note 1.1F: Other expenses Salaries and operating expenses1 2,576 2,377 Impairment of financial assets 211 - Other 350 - Total other expenses 3,137 2,377

1 Expenses associated with the administration of the ABA were received from PM&C as resources received free of charge.

1.2. Own-Source Revenue and Gains OWN-SOURCE REVENUE Note 1.2A: Interest Term deposits 16,092 16,492 Interest bearing bank account 302 363 Total interest 16,394 16,855

Accounting Policy

Interest revenue is recognised using the effective interest method.


PAGE 161


1.2 Own-Source Revenue and Gains (continued) 2016 2015 $'000 $'000 Note 1.2B: Lease rental income Revenue lease receipt - Wurrumiyanga 1,063 669 Revenue lease receipt - Groote 757 723 Revenue lease receipt - Milikapiti 276 177 Revenue lease receipt - Wurankuwu 28 5 Other 104 41 Total lease rental income 2,228 1,615

Accounting Policy

The ABA receives lease rental income for Township Head Leases in the Northern Territory. Lease rental income is recognised when received by the ABA (refer to Note 1.1C Payments for township leases).

Note 1.2C: Resources received free of charge Salaries 2,512 2,313 Remuneration of auditors - financial statements audit 64 64 Total resources received free of charge 2,576 2,377

Accounting Policy

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

The ABA reports a number of resources received free of charge in relation to PM&C expenses associated with management of the ABA account, oversight of ABA grants and the ABA Advisory Committee secretariat.

Note 1.2D: Other revenue Return of grant funding 263 66 Total other revenue 263 66

GAINS Note 1.2E: Gain on realisation of investment Investments

Proceeds from sale 537,340 743,340 Carrying value of assets sold (537,340) (743,340)

Total gain from sale of assets - - Accounting Policy

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.


PAGE 162


1.2 Own-Source Revenue and Gains (continued) REVENUE FROM GOVERNMENT 2016 2015 $'000 $'000 Note 1.2F: Revenue from Government Appropriations

Special appropriations 206,860 164,967 Total revenue from Government 206,860 164,967

Accounting Policy

Amounts appropriated are recognised as revenue. Revenue from Government is not typically recognised by administered entities, however, the determination provided by the Minister for Finance in relation to the ABA enables disclosure of such amounts as revenue.

Royalties in respect of uranium and non-uranium mining on Aboriginal land are paid to the Australian Government, the Department of Industry, Innovation & Science and the Northern Territory Treasury (Royalty Branch), respectively. Following advice from these entities, drawdowns are made from the Official Public Account (OPA) to enable royalty equivalents to be credited to the ABA, in accordance with section 63 of the ALRA.

These receipts are credited to the ABA shortly after receipt of advice from the respective entity, which usually occurs in the week following the payment of the royalties by mining companies to the entity.


PAGE 163


2. Financial Position This section analyses the Aboriginals Benefit Account’s assets used to conduct its operations and the operating liabilities incurred as a result. 2.1. Financial Assets 2016 2015 $'000 $'000 Note 2.1A: Trade and other receivables Other receivables:

Interest 6,947 5,705 GST receivable from the ATO 442 466 Other 286 286

Total other receivables 7,675 6,457 Less impairment allowance

Other receivables (211) - Total impairment allowance (211) - Total trade and other receivables (net) 7,464 6,457 Trade and other receivables aged as follows

Not overdue 7,464 6,171 Overdue by more than 90 days 211 286

Total trade and other receivables (gross) 7,675 6,457

Receivables are expected to be recovered in no more than 12 months.

Note 2.1B: Investments Term deposits 551,500 490,840 Total investments 551,500 490,840

2.2. Non-Financial Assets Note 2.2A: Other non-financial assets Prepayments – subsection 64(3) 314 186 Prepayments – subsection 64(4A) 4,089 5,897 Total other non-financial assets 4,403 6,083 Other non-financial assets expected to be recovered

No more than 12 months 1,810 815 More than 12 months 2,593 5,268

Total other non-financial assets 4,403 6,083

No indicators of impairment were found for other non-financial assets.

2.3. Payables Note 2.3A: Suppliers Office of Executive Director Township Leasing administrative liabilities 824 161 Suppliers 226 509 Total suppliers payables 1,050 670

Settlement is usually made within 30 days. Supplier payables are expected to be settled in no more than 12 months.


PAGE 164


2016 2015 $'000 $'000 Note 2.3B: Grants Private sector

Non-profit organisations 494 1,207 Total grants 494 1,207

Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility. All grant payables are expected to be settled in no more than 12 months.

Note 2.3C: Other payables Royalty equivalent overpayment 1,046 620 Other 203 108 Total other payables 1,249 728 Other payables expected to be settled


Total other payables 1,249 728 2.4. Other Provisions Note 2.4A: Other provisions Other provision 98 98 Total other provisions 98 98 Other provisions expected to be settled

No more than 12 months 98 - More than 12 months - 98

Total other provisions 98 98

Other

provisions Total $’000 $’000 As at 1 July 2015 98 98 Amounts used - - Closing balance as at 30 June 2016 98 98


PAGE 165


3. Funding This section identifies the Aboriginals Benefit Account funding structure. 3.1. Special Accounts Note 3.1: Special accounts ('recoverable GST exclusive')

Aboriginals Benefit

Account1

2016 2015 $'000 $'000

Balance brought forward from previous period 14,133 17,569 Increases

Appropriation credited to special account 207,285 164,229 Investments realised 537,340 743,340 Other receipts 17,592 17,610

Total increases 762,217 925,179 Available for payments 776,350 942,748 Decreases

Payments made (158,790) (145,275) PGPA Act section 58 investments (598,000) (783,340)

Total decreases (756,790) (928,615) Total balance carried to the next period 19,560 14,133

1Appropriation: Public Governance, Performance and Accountability Act 2013, section 80.

Establishing instrument: Aboriginal Land Rights (Northern Territory) Act 1976, sections 62, 63, 64 and 65.

Purpose: For the receipt and disbursement of the equivalent of mining royalty monies derived from mining operations on Aboriginal land in the Northern Territory.


PAGE 166


3.2. Cash Flow Reconciliation 2016 2015 $'000 $'000 Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement Cash and cash equivalents as per

Cash Flow Statement 19,560 14,133 Statement of Financial Position 19,560 14,133

Discrepancy - - Reconciliation of net cost of services to net cash from/(used by) operating activities

Net cost of services (141,634) (126,064) Revenue from Government 206,860 164,967 Interest on investments recognised in investing activities (16,394) (16,855)

Movements in assets / liabilities Assets

(Increase)/Decrease in net receivables 235 (454) Decrease in prepayments 1,680 974

Liabilities Increase/(Decrease) in supplier payables 380 (277) Decrease in grants payables (713) (710) Increase/(Decrease) in other payables 521 (915) Increase/(Decrease) in provisions - (97)

Net cash from operating activities 50,935 20,569 Accounting Policy

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

(a) Cash on hand.

(b) Demand deposits in operating bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.


PAGE 167


4. Managing Uncertainties This section analyses how the Aboriginals Benefit Account manages financial risks within its operating environment. 4.1. Contingent Assets and Liabilities Quantifiable contingent liabilities – claims for damages and costs The Australian Government has appealed a decision by the Federal Court requiring the payment of a grant to the Machado-Joseph Disease (MJD) Foundation in the amount of $10.000 million. An outcome is expected to be known early in 2016-17. However, it is not possible to determine the financial effect of the outcome on other grants at this time. Accounting Policy

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

4.2. Financial Instruments 2016 2015 $'000 $'000 Note 4.2A: Categories of financial instruments Financial assets Held-to-maturity investments:

Term deposits 551,500 490,840 Total held-to-maturity investments 551,500 490,840 Loans and receivables

Cash and cash equivalents 19,560 14,133 Interest receivable 6,947 5,705 Other receivables (net) 75 286

Total loans and receivables 26,582 20,124 Total financial assets 578,082 510,964 Financial liabilities Financial liabilities measured at amortised cost:

Supplier payables 1,050 670 Grants payables – non-profit organisations 494 1,207


Accounting Policy

Financial Assets

The ABA classifies its financial assets in the following categories:

(a) Held-to-maturity investments.

(b) Loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.


PAGE 168


4.2 Financial Instruments (continued) Financial Assets (continued)

Investments

Investment activities are conducted in accordance with the requirements of section 58 of the PGPA Act. Investments are typically low risk and take the form of term deposits. The duration of the term deposits are usually for a term of three to 18 months.

The investment objective of PM&C as administrators for ABA is to ensure that ABA complies with legislative obligations under the PGPA Act and the ALRA; and that ABA maintains and preserves its capital base.

The investment portfolio and bank accounts are managed to ensure sufficient funds are available for payments as required.

Investment practices are also governed by the investment policy of PM&C, which requires the management of the portfolio to respond to positive investment opportunities in the market so as to achieve the best possible returns for the account within the legislative framework.

The asset allocation of the portfolio as at 30 June 2016 is 100% (2015: 100%) with Australian banks.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit and loss.

Held-to-Maturity Investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the ABA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets


If there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Financial Liabilities

Other Financial Liabilities (at amortised cost)

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent goods or services have been received (and irrespective of having been invoiced).


PAGE 169


4.2 Financial Instruments (continued) 2016 2015 $'000 $'000 Note 4.2B: Net gains or losses on financial assets Held-to-maturity investments

Interest revenue 16,092 16,492 Net gain on held-to-maturity investments 16,092 16,492 Loans and receivables

Interest revenue 302 363 Impairment (211) -

Net gain on loans and receivables 91 363 Net gain on financial assets 16,183 16,855

The above net gain is from financial assets not recognised at fair value through profit and loss.

Note 4.2C: Fair value of financial instruments The fair value of financial instruments approximate their carrying value.

Note 4.2D: Credit risk The ABA is exposed to credit risk through cash and receivables (recognised as loans and receivables) and bank term deposits (recognised as held-to-maturity). The maximum exposure to credit risk is the risk that arises from potential default of a debtor or financial institution. This amount is equal to the total amount of cash 2016: $19.560 million (2015: $14.133 million), receivables 2016: $7.675 million (2015: $6.457 million) and investments 2016: $551.500 million (2015: $490.840 million). PM&C on behalf of the ABA has assessed the risk of potential default and has allocated amounts to an impairment allowance 2016: $0.211 million (2015: Nil). All financial assets that were past due are impaired. ABA holds no collateral to mitigate against credit risk. Note 4.2E: Liquidity risk The ABA's financial liabilities are supplier payables and grant payables. The exposure to liquidity risk is based on the notion that the ABA will encounter difficulty in meeting its obligations associated with financial liabilities. The ABA is appropriated funding from the Australian Government. PM&C on behalf of the ABA manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, PM&C on behalf of the ABA has policies in place to ensure timely payments are made when due and has no past experience of default. The maturities for non-derivative financial liabilities for ABA are within one year in both the current and prior year. The ABA has no derivative financial liabilities in both the current and prior year.

Note 4.1F: Market risk The ABA holds both basic financial instruments and held-to-maturity investments that do not expose the ABA to certain market risks. The ABA is not exposed to currency risk, other price risk or interest rate risk.


PAGE 170

ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT FINANCIAL STATEMENTS

The following pages 171 to 188 contain PDFs of the Aboriginal and Torres Strait Islander Land Account financial statements for the period ended 30 June 2016. If you require assistance accessing these pages, please email [email protected]


PAGE 171


PAGE 172


PAGE 173

ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2016


2016 2015 Notes $'000 $'000 NET COST OF SERVICES Expenses

Payments to the Indigenous Land Corporation 1.1A 50,712 49,865 Investment costs 1.1B 393 326 Audit fees 29 29

Total expenses 51,134 50,220 Own-source Income Own-source revenue

Interest 1.2A 59,724 69,834 Resources received free of charge - audit fees 29 29

Total own-source revenue 59,753 69,863 Gains

Gain on realisation of investments 1.2B - - Total gains - - Total own-source income 59,753 69,863 Net contribution by services (8,619) (19,643) Surplus 8,619 19,643 Total comprehensive income 8,619 19,643


PAGE 174

ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT STATEMENT OF FINANCIAL POSITION as at 30 June 2016


2016 2015 Notes $'000 $'000 ASSETS Financial Assets

Cash and cash equivalents 3.1 3 2 Trade and other receivables 2.1A 25,721 25,216 Investments 2.1B 1,997,516 1,989,403

Total financial assets 2,023,240 2,014,621 Total assets 2,023,240 2,014,621 Net assets 2,023,240 2,014,621 EQUITY

Contributed equity 433,932 433,932 Retained surplus 1,589,308 1,580,689

Total equity 2,023,240 2,014,621


PAGE 175

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PAGE 176

ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT CASH FLOW STATEMENT for the period ended 30 June 2016


2016 2015 Notes $'000 $'000 OPERATING ACTIVITIES Cash used

Payments to the Indigenous Land Corporation 50,712 49,865 Payments to consultants 231 169 Payment of investment management costs 162 248

Total cash used 51,105 50,282 Net cash used by operating activities 3.2 (51,105) (50,282) INVESTING ACTIVITIES Cash received

Proceeds from realisation of investments 2,030,388 3,239,611 Interest on investments 59,219 71,715

Total cash received 2,089,607 3,311,326 Cash used

Investments 2,038,501 3,261,043 Total cash used 2,038,501 3,261,043 Net cash from investing activities 51,106 50,283 Net increase in cash held 1 1 Cash and cash equivalents at the beginning of the reporting period 2 1 Cash and cash equivalents at the end of the reporting period 3.1 3 2


PAGE 177

ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2016

Overview .............................................................................................................................................. 179

1. Financial Performance ..................................................................................................................... 181

1.1. Expenses .................................................................................................................................. 181

1.2. Own-Source Revenue and Gains ............................................................................................. 182

2. Financial Position ............................................................................................................................. 183

2.1. Financial Assets ........................................................................................................................ 183

3. Funding ............................................................................................................................................ 184

3.1. Special Accounts ....................................................................................................................... 184

3.2. Cash Flow Reconciliation .......................................................................................................... 185

4. Managing Uncertainties ................................................................................................................... 186

4.1. Contingent Assets and Liabilities .............................................................................................. 186

4.2. Financial Instruments ................................................................................................................ 186


PAGE 178


Overview Objectives of the Aboriginal and Torres Strait Islander Land Account The Aboriginal and Torres Strait Islander Land Account (ATSILA) operates under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is a special account for the purposes of the PGPA Act. ATSILA was established to recognise that most Indigenous people will not benefit from the High Court’s Mabo (No. 2) decision (Mabo and Others v Queensland (No. 2) [1992] HCA 23) and the Native Title Act 1993 because they were dispossessed of their land and therefore cannot demonstrate the continuous association necessary to prove native title. ATSILA's purpose is to provide a secure stream of income to the Indigenous Land Corporation (ILC) in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of land. Basis of preparation of the financial statements ATSILA's activities are classified as administered activities carried out by the Department of the Prime Minister and Cabinet (PM&C) on behalf of the Australian Government and are reported in PM&C's administered financial statements for the period 1 July 2015 to 30 June 2016. In addition to being consolidated into PM&C’s financial statements, separate audited financial statements are prepared for ATSILA as required by subsection 193H of the ATSI Act. The Minister for Finance has granted ATSILA an exemption under the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR). The exemption applies to the following requirements of the FRR:

(d) Sections 9, 32 and 33 of the FRR. ATSILA is required to present its administered activities in departmental format, in accordance with current practice.

(e) Section 34 of the FRR to the extent that ATSILA does not have any defined outcomes. (f) Divisions 2,3,4 and 5 of Part 6 of the FRR to the extent that ATSILA has no appropriation transactions

and balances other than through its special account. The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.


PAGE 179


New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date as stated in the standard. There are no new standards, revised standards, amended standards or interpretations that were issued by the Australian Accounting Standards Board (AASB) prior to the sign off date that are applicable to the current reporting period and have a material financial impact on ATSILA. Future Australian Accounting Standard Requirements There are no new standards, revised standards, amended standards or interpretations that have been issued by the AASB prior to the sign off date that are applicable to the future reporting period or are expected to have a future material financial impact on ATSILA. Taxation ATSILA is exempt from all forms of taxation except the Goods and Services Tax (GST). Compliance with statutory conditions for payments from the consolidated revenue fund The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements. During 2015-16 PM&C reviewed ATSILA’s exposure to the risk of not complying with statutory conditions on payments from appropriations, namely section 83 of the Constitution. Payments in 2015-16 subject to statutory conditions have been reviewed and there are no issues of non-compliance. ATSILA will continue to monitor its level of compliance with section 83 of the Constitution. Significant accounting judgements and estimates No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities. Events after the reporting period There are no known events occurring after the reporting period that could impact on the financial statements.


PAGE 180


1. Financial Performance This section analyses the financial performance of the Aboriginal and Torres Strait Islander Land Account for the year ended 30 June 2016.

Expenses 1.1. 2016 2015 $'000 $'000 Note 1.1A: Payments to the Indigenous Land Corporation Annual payment to the Indigenous Land Corporation 50,712 49,865 Total payments to the Indigenous Land Corporation 50,712 49,865

Accounting Policy

On 29 June 2010 the ATSI Act was amended to provide a minimum guaranteed annual payment of $45.000 million to the ILC from 1 July 2010, payable on the first business day in October. This annual payment is required to be indexed each year by the Consumer Price Index. The indexation factor for the payment in 2016 was 1.7% (2015: 2.7%).

An additional payment is paid to the ILC if the actual capital value of ATSILA exceeds the indexed capital value. No additional payment was made during the year (2015: $0).

Note 1.1B: Investment Costs Consultants 231 169 Investment management expenses 162 157 Total investment costs 393 326

Accounting Policy

Expenditure directly related to the management of ATSILA’s investments can be debited from ATSILA under section 58(4) of the PGPA Act. These costs represent the services provided by the Investment Unit and by specialist investment advisors.


PAGE 181


Own-Source Revenue and Gains 1.2.

OWN-SOURCE REVENUE 2016 2015 $'000 $'000 Note 1.2A: Interest Term deposits 59,724 66,654 Semi-government bonds - 3,180 Total interest 59,724 69,834

Accounting Policy

Interest revenue is recognised using the effective interest method.

GAINS Note 1.2B: Gain on Realisation of Investments Investments:

Proceeds from realisation 2,030,388 3,239,611 Net book value of assets realised (2,030,388) (3,239,611)

Net gain from realisation of investments - -

Accounting Policy

A gain or loss on realisation is recognised when the market value of the investment is different from that of the purchase value.


PAGE 182


2. Financial Position This section analyses the Aboriginal and Torres Strait Islander Land Account’s assets used to conduct its operation.

Financial Assets 2.1.

2016 2015

$'000 $'000 Note 2.1A: Trade and Other Receivables Other receivables

Interest receivable - term deposits 25,721 25,216 Total trade and other receivables 25,721 25,216

No receivables are overdue or impaired.

Receivables are expected to be recovered in no more than 12 months.

Note 2.1B: Investments Term deposits 1,997,516 1,989,403 Total investments 1,997,516 1,989,403 Investments expected to be recovered

No more than 12 months 1,997,516 1,960,036 More than 12 months - 29,367

Total investments 1,997,516 1,989,403 Additional information relating to investments is disclosed in Note 4.2 Financial Instruments.


PAGE 183


3. FundingThis section identifies the Aboriginal and Torres Strait Islander Land Account funding structure.

Special Accounts 3.1.

Note 3.1: Special Accounts ('Recoverable GST exclusive') Aboriginal and Torres Strait Islander Land

Account1 2016 2015 $'000 $'000

Balance brought forward from previous period 2 1 Increases

Investments realised 2,030,388 3,239,611 Interest receipts 59,219 71,715

Total increases 2,089,607 3,311,326 Available for payments 2,089,609 3,311,327 Decreases

Payments made (51,105) (50,282) PGPA Act section 58 investments (2,038,501) (3,261,043)

Total decreases (2,089,606) (3,311,325) Total balance carried to the next period 3 2

1 Appropriation: Public Governance, Performance and Accountability Act 2013; section 80.

Establishing Instrument: Aboriginal and Torres Strait Islander Act 2005; section 192W.

Purpose: to provide a secure stream of income to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of land.

This account is interest bearing.


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Cash Flow Reconciliation 3.2.

2016 2015 $'000 $'000 Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement Cash and cash equivalents as per

Cash Flow Statement 3 2 Statement of Financial Position 3 2

Discrepancy - - Reconciliation of net cost of services to net cash used by operating activities

Net contribution by services 8,619 19,643 Interest on investments recognised in investing activities (59,724) (69,834)

Movements in assets / liabilities Liabilities

Increase in supplier payables - (91) Net cash used by operating activities (51,105) (50,282)

Accounting Policy

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

(a) Cash on hand.

(b) Demand deposits in operating bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.


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4. Managing Uncertainties This section analyses how the Aboriginal and Torres Strait Islander Land Account manages financial risks within its operating environment.

Contingent Assets and Liabilities 4.1. PM&C, on behalf of ATSILA, is not aware of any material quantifiable or unquantifiable contingent assets or liabilities as at the signing date that would require disclosure in the financial statements (2015: Nil). PM&C is not aware of any significant contingencies that would require disclosure (2015: Nil). Accounting Policy

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

Financial Instruments 4.2.

2016 2015 $'000 $'000 Note 4.2A: Categories of Financial Instruments Financial Assets Held-to-maturity investments

Term deposits 1,997,516 1,989,403 Total held-to-maturity investments 1,997,516 1,989,403 Loans and receivables

Cash and cash equivalents 3 2 Interest receivable - term deposits 25,721 25,216

Total loans and receivables 25,724 25,218 Total financial assets 2,023,240 2,014,621

Accounting Policy

PM&C has classified ATSILA’s financial assets in the following categories:

(a) Held-to-maturity investments.

(b) Loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.


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Accounting Policy (continued)

Investments

Investment activities are conducted in accordance with the requirements of section 58 of the PGPA Act. Investments are typically low risk and take the form of term deposits. The duration of the term deposits are usually for a term of three to 18 months.

The investment objective of PM&C as administrators for ATSILA, is to ensure that ATSILA complies with legislative obligations under the PGPA Act and the ATSI Act; and that ATSILA maintains and preserves its capital base.

The investment portfolio and bank accounts are managed to ensure sufficient funds are available for payments to the ILC when due. Investment practices are also governed by the investment policy of PM&C which requires the management of the portfolio to respond to positive investment opportunities in the market so as to achieve the best possible returns for the account within the legislative framework.

The asset allocation of the portfolio as at 30 June 2016 is 100% (2015: 100%) with Australian banks.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit and loss.

Held-to-Maturity Investments

Non derivative financial assets with fixed or determinable payments and fixed maturity dates that ATSILA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets


If there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.


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2016 2015

$'000 $'000

Note 4.2B: Net Gains or Losses on Financial Assets Held-to-maturity investments

Interest revenue Term deposits 59,724 66,654 Semi-government bonds - 3,180

Net gain on held-to-maturity investments 59,724 69,834 Net gains on financial assets 59,724 69,834

The above net gain is from financial assets not recognised at fair value through profit and loss.

Note 4.2C: Fair Value of Financial Instruments The fair value of financial instruments approximate their carrying value.

Note 4.2D: Credit Risk ATSILA is exposed to credit risk through cash and receivables (recognised as loans and receivables) and investments (recognised as held-to-maturity). The maximum exposure to credit risk is the risk that arises from potential default of a debtor or financial institution. This amount is equal to the total amount of cash 2016: $0.003 million (2015: $0.002 million), receivables 2016: $25.721 million (2015: $25.216 million) and investments 2016: $1,997.516 million (2015: $1,989.403 million). ATSILA only holds funds with Australian banks. PM&C on behalf of ATSILA has assessed the risk of potential default and has determined that no allowances or provisions are required to be recognised. ATSILA holds no collateral to mitigate against credit risk. No financial instruments are past due or impaired.

Note 4.2E: Liquidity Risk The exposure to liquidity risk is based on the notion that ATSILA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to ATSILA having a significant self funding capital base available and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

PM&C on behalf of ATSILA manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, PM&C on behalf of ATSILA has policies in place to ensure timely payments are made when due and has no past experience of default. ATSILA has no financial liabilities at year end.

Note 4.2F: Market Risk

ATSILA holds basic financial instruments and held-to-maturity investments that are not exposed to market risks. ATSILA is not exposed to currency risk, other price risk or interest rate risk.


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PART 5

Appendices

Appendix A Aboriginals Benefit Account Annual Report 2015–16 191

Appendix B Aboriginal and Torres Strait Islander Land Account Annual Report 2015–16 204

Appendix C Registrar of Indigenous Corporations Report 2015–16 206

Appendix D Supporting the National Australia Day Council 209

APPENDIX A ABORIGINALS BENEFIT ACCOUNT ANNUAL REPORT 2015–16

Aboriginals Benefit Account overview

Role and functions

The Aboriginals Benefit Account (ABA) is legislated under Part VI of the Aboriginal Land Rights (Northern Territory) Act 1976 (the Land Rights Act) and is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013 (the PGPA Act).

The ABA receives and distributes monies generated from mining on Aboriginal land in the Northern Territory. Payments into the ABA are based on royalty equivalents which are determined by the estimated value of the statutory royalty payments. The ABA is public money.

The Minister for Indigenous Affairs allocates funds from the ABA to the four Northern Territory Land Councils (Northern Land Council, Central Land Council, Anindilyakwa Land Council and Tiwi Land Council) for operational purposes and to the Office of Township Leasing to cover the administration costs and upfront payments associated with township leases. The Minister also approves grants for the benefit of Aboriginal people living in the Northern Territory, taking into consideration the advice provided by the ABA Advisory Committee. Funds from the ABA are also distributed to Royalty Associations in areas affected by mining.

The major functions of the ABA are outlined in Figure 5.1.

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Figure 5.1 Major functions of the Aboriginals Benefit Account

Function according to section of the Land Rights Act

Description

Credits into the ABA, sections 62–63

To receive the equivalent of mining royalty monies derived from mining operations on Aboriginal land in the Northern Territory, and such other income as outlined in section 63 of the Land Rights Act.

Payments to Land Councils, subsection 64(1), in accordance with subsection 34(1)

To make payments to the Northern Territory Land Councils as determined by the Minister to meet their administrative expenditure. The Land Rights Act requires the administrative expenditure of the Land Councils to be in accordance with proposed estimates of expenditure approved by the Minister.

Payments to Royalty Associations, subsection 64(3)

To make payments to the Land Councils for distribution to incorporated Aboriginal associations (Royalty Associations) in order to benefit those Aboriginal people who are affected by mining operations. These payments are directly linked to the amount of royalty equivalent monies received in respect of mining in the areas concerned. Royalty Associations receive 30 per cent of the royalty equivalents paid into the ABA. Relevant amounts must be paid within 6 months of receipt by the respective Land Council.

Beneficial payments, subsection 64(4)

To make payments to or for the benefit of Aboriginal people living in the Northern Territory. The ABA Advisory Committee provides advice to the Minister on these payments.

Office of Township Leasing payments, subsection 64(4A)

To make payments for acquiring and administering township leases approved under section 19A and leases approved under section 20CA of the Land Rights Act.

Admin payments, subsection 64(6)

To make payments to meet expenses associated with administering the ABA.


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Operating environment

The ABA is administered by the Department of the Prime Minister and Cabinet (PM&C) in accordance with the requirements of the Land Rights Act and the PGPA Act. The Minister for Indigenous Affairs, Senator the Hon Nigel Scullion is the responsible Minister.

In relation to PM&C’s 2015–16 outcome and programme reporting structure, the ABA is part of Outcome 2: Indigenous.

The ABA Advisory Committee, established under subsection 65(1) of the Land Rights Act, plays an important role in advising the Minister on beneficial payments under subsection 64(4) of the Land Rights Act.

Following a sharp increase in 2008–09, royalty equivalent receipts into the ABA have fluctuated; falling until 2012–13 before recovering in 2013–14 and continuing the trend upwards in 2015–16. During the reporting period, applications for beneficial payments from the ABA have remained constant.

Offices

The ABA is administered by PM&C’s National Office (Canberra and Darwin) and the Regional Network in the Northern Territory. National Office is responsible for advising the Minister on the overall policy and financial management of the ABA, providing secretariat support to the ABA Advisory Committee and managing the ABA Community Stores Infrastructure

Project. The Regional Network in the Northern Territory is responsible for assessing ABA subsection 64(4) grant applications and managing the ABA subsection 64(4) grants.

Strategic direction

During 2015–16, a key focus of the department was improving the operations and use of the ABA to ensure funding provides greater benefits to Aboriginal people in the Northern Territory.

An ABA Performance Framework was developed to allow the department and stakeholders to focus on performance management and to support reporting on inputs, outputs and outcomes from ABA expenditure, principally under subsection 64 (4) of the Land Rights Act. The Performance Framework promotes ongoing improvement and accountability and supports a transparent and robust decision making process.

The ABA Performance Framework builds on the ABA Risk Management Principles to provide the government and stakeholders with visibility on the benefits being delivered by ABA investment.

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Aboriginals Benefit Account performance 2015–16

Year in review

Mining royalty equivalent receipts of $206.860 million were credited to the ABA in 2015–16. This represents a 25.4 per cent increase on the level of 2014–15 receipts. Figures 5.2 and 5.3 summarise the ABA income and expenditure.

Expenditure on beneficial payments under subsection 64(4) decreased, from $49.893 million in 2014–15 to $43.908 million in 2015–16 (inclusive of mining withholding tax).

Funding highlights

ABA beneficial grant funding under subsection 64 (4) of the Land Rights Act, contributes to the Government’s objective in the following priority areas: creation of Indigenous jobs; ensuring children go to school; ensuring adults go to work; and the ordinary rule of law operates in Indigenous communities to ensure everyone is safe.

Projects supporting employment, training and cultural activities in the Northern Territory using ABA beneficial grant funding in 2015–16.

è Injalak Arts & Crafts Aboriginal Association Incorporated were granted $881,166 for building a new screen print workshop and café adjacent to the existing Arts Centre, in Gunbalanya, West Arnhem Land. The Centre is an important sales outlet for over 200 artists and weavers. This grant will expand opportunities for artists and employment in hospitality.

è The Milingimbi and Outstations Progress Resource Association Incorporated (MOPRA) was provided with $350,000 for the purchase of a barge to operate between Milingimbi and the Homelands communities to transport vehicles, machinery and equipment to assist with MOPRA’s building, maintenance and environmental programmes. This barge will operate commercially, once Coxswain training of Ranger staff is completed.

è Dhimurru Aboriginal Corporation received grant funding of $250,000 for the purchase of a vessel to enable Rangers to patrol Dhimurru’s sea estates for crocodile management purposes, for removal of ghost fishing nets and to allow the transportation of land management equipment to remote offshore islands.


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Figure 5.2 Summary of Aboriginals Benefit Account income, 2014–15 and 2015–16

2014–15$’000

2015–16$’000

Royalty equivalents 164,967 206,860

Interest 16,855 16,394

Resources received free of charge 2,377 2,576

Lease rental income 1,615 2,228

Other income 66 263

Total ABA income 185,880 228,321

Figure 5.3 Summary of Aboriginals Benefit Account expenditure (inclusive of mining withholding tax) 2013–14 and 2014–15

2014–15$’000

2015–16$’000

Payments to Land Councils for administrative purposes – Land Rights Act, subsection 64(1)

42,435 49,522

Payments to Land Councils for distribution to Royalty Associations – Land Rights Act, subsection 64(3)

49,489 62,057

Grant payments to or for the benefit of Aboriginal people in the Northern Territory – Land Rights Act, subsection 64(4)

49,893 43,908

Payments in relation to township leases and sub-leases – Land Rights Act, subsection 64(4A)

2,150 3,836

Administration (suppliers and employees including resources received free of charge) – Land Rights Act, subsection 64(6)

3,010 3,772

Total expenditure 146,977 163,095

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è Community Stores Infrastructure Project were provided with grants of $9,720,029 to improve food security in remote NT Indigenous communities by constructing three community stores in Peppimenarti ($3,858,386), Bulman ($4,043,461) and Pirlangimpi ($1,818,182). Store construction work underway in Jilkminggan, Beswick, Canteen Creek, Epenarra, Yuenduma, Timber Creek, Barunga, Bulla, and Gunbalanya is expected to be completed in 2016–17.

Fund Management and reporting framework

PM&C is responsible for ensuring the ABA complies with the Land Rights Act and relevant financial legislation. Section 64B of the Land Rights Act requires PM&C to keep accounts and prepare financial statements in respect of the ABA, as determined by the Minister for Finance. Section 64B also requires the Auditor-General to report on the financial statements to the Minister for Indigenous Affairs.

The reporting framework for 2015–16 (Figure 5.4) is aligned with the major functions of the ABA, as described in Figure 5.1.

Figure 5.4 Aboriginals Benefit Account activity reporting framework

Administration of the ABA

1: Credits into the ABA

2: Debits out of the ABA

2.1: Payments to land councils

2.2: Payments to royalty associations

2.3: Beneficial grant payments

2.4: Office of Township Leasing payments

2.5: Administration payments

3: ABA secretariat and policy

4: Management of the ABA and its investment portfolio


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Aboriginals Benefit Account activities 2015–16

Credits into the Aboriginals Benefit Account

Section 63 of the Land Rights Act requires the Commonwealth to credit to the ABA royalty equivalent monies, equivalent to the royalties received by the Commonwealth or the Northern Territory for mining on Aboriginal land in the Northern Territory.

Subsection 62(3) of the Land Rights Act requires interest received from the investment of ABA funds to be credited into the ABA. The interest earned from investments is receipted directly into the ABA’s bank account. Figure 5.3 details interest earned for the year, as well as royalty equivalent income, resources received free of charge and lease rental income.

The majority of resources required for the administration of the ABA were provided free of charge by PM&C. Resources provided free of charge represent staffing costs associated with the management of the ABA but not reimbursed to the department by the ABA. Resources provided free of charge are included as revenue in Figure 5.2 and expenses in Figure 5.10.

Financial statement audit services are provided free of charge to the department by the Australian National Audit Office.

Royalty equivalent receipts

Under the Northern Territory (Self-Government) Act 1978, all Commonwealth interests in minerals in the Northern Territory (other than a prescribed substance within the meaning of the Atomic Energy Act 1953) are vested in the Northern Territory. Title to those substances to which the Atomic Energy Act refers, principally uranium, remains vested in the Commonwealth.

Royalties from uranium mining on Aboriginal land are paid to the Australian Government Department of Industry and Science, and royalties from non-uranium mining on Aboriginal land are paid to the Northern Territory Treasury.

Following advice from these bodies and any necessary determinations made by the Minister, special appropriations are made from the Consolidated Revenue Fund to enable funds equivalent to the amount of royalties received from mining on Aboriginal land in the Northern Territory to be credited to the ABA. Advice is provided regularly by the Northern Territory Department of Treasury and twice yearly by the Australian Department of Industry and Science. Figure 5.5 details uranium and non-uranium royalty equivalents credited to the ABA for 2014–15 and 2015–16.

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Figure 5.5 Royalty equivalent receipts, 2014–15 and 2015–16

2014–15$’000

2015–16$’000

Uranium royalties 5,980 8,189

Non-uranium royalties 158,987 198,671

Total royalty equivalents 164,967 206,860

ABA royalty equivalent income is volatile because it is subject to profits recorded by individual mines, which are influenced by global commodity markets.

Figure 5.6 shows section 63 receipts from royalty equivalents transferred into the ABA in the past eight years.

Figure 5.6 Section 63 royalty equivalent receipts transferred to the Aboriginals Benefit Account, 2008–09 to 2015–16

2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 2015–16

$250

$200

$150

$100

$50

$0

Mill

ions


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Debits out of the Aboriginals Benefit Account

Aboriginals Benefit Account expenditure in 2015–16

Figure 5.3 provides a summary of total ABA expenditure in 2014–15 and 2015–16.

Payments to Land Councils for administrative expenses

Figure 5.7 lists ABA monies paid in 2014–15 and 2015–16 to the four Northern Territory Land Councils to meet their administrative costs.

Payments to Royalty Associations

Under subsection 64(3) of the Land Rights Act, 30 per cent of the royalty equivalent monies must be paid to each Land Council in the area in which a mining operation is situated. These monies are distributed to Aboriginal organisations (Royalty Associations) in those areas affected by mining operations.

Figure 5.8 lists payments made in 2014–15 and 2015–16 to Land Councils for distribution to Royalty Associations.

Figure 5.7 Subsection 64(1) payments (net of mining withholding tax) to Land Councils for administrative costs, 2014–15 and 2015–16

Land Council 2014–15$’000

2015–16$’000

Northern Land Council 18,592 22,638

Central Land Council 16,278 18,211

Tiwi Land Council 2,179 2,875

Anindilyakwa Land Council 3,754 3,893

Total 40,803 47,617

Note: Further details can be found in Part 4, financial statements.

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Figure 5.8 Subsection 64(3) payments (net of mining withholding tax) to Land Councils for distribution to Royalty Associations, 2014–15 and 2015–16

Land Council 2014–15$’000

2015–16$’000

Northern Land Council 10,906 15,472

Central Land Council 5,344 17,532

Anindilyakwa Land Council 30,866 26,571

Tiwi Land Council 394 0

Total 47,510 59,575


Beneficial payments

Under subsection 64(4) of the Land Rights Act, the Minister can make payments for the benefit of Aboriginal people living in the Northern Territory.

The ABA Advisory Committee advises the Minister on these payments.

Figure 5.9 lists expenditure under subsection 64(4) for 2014–15 and 2015–16.

Figure 5.9 Subsection 64(4) expenditure – beneficial payments (net of mining withholding tax), 2014–15 and 2015–16

Subsection 64(4) beneficial payments 2014–15$’000

2015–16$’000

Total beneficial grant payments 48,521 42,770


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Office of Township Leasing

Under the Land Rights Act, administration costs and upfront payments associated with township leases and other leases administered by the Executive Director Township Leasing are drawn from the ABA. This legislative arrangement reflects that reformed land arrangements in townships on Aboriginal land can assist with better service delivery and improved housing management, and both facilitate home ownership and increase economic development for landowners and other residents.

Costs associated with the administration of the ABA and the Office of Township Leasing are captured respectively under

subsections 64(6) and 64(4A) of the Land Rights Act. Figure 5.10 provides a breakdown of administration and Office of Township Leasing expenses for the ABA for 2014–15 and 2015–16, including consultancy services and services provided free of charge to the ABA.

Expenditure for this purpose represents 3.4 per cent of the total ABA drawdown for 2015–16.

Subsections 64(6) and 64(4A) administrative payments

Figure 5.10 Departmental administration, subsections 64(6) and 64(4A) expenditure (exclusive of GST), 2014–15 and 2015–16

Departmental administration expenditure and expenditure under subsections 64(6) and 64(4A)

2014–15$’000

2015–16$’000

Departmental administration expenditure

Resources provided free of charge 2,377 2,576

Subsection 64(6) payments

Committee members sitting fees/superannuation 74 51

Consultancy services 0 0

Committee meeting expenses 0 0

ABA Stores Infrastructure Project 559 584

Subsection 64(4A) payments

Office of Township Leasing administrative expenses 1,445 2,027

Payments for township leases 692 1,809

Total administrative costs of the ABA 5,147 7,047

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Consultancy services

There were no consultancy services used by the ABA in 2015–16.

Mining withholding tax

Under the Income Tax Assessment Act 1936, payments made from royalty equivalents credited to the ABA are subject to Mining Withholding Tax at a rate specified in the Income Tax (Mining Withholding Tax) Act 1979. In accordance with the Taxation Laws Amendment Act (No. 3) 1994, the current rate of tax applied to payments of Mining Withholding Tax is 4 per cent.

From 1 July 2003 the Australian Taxation Office determined the ABA to be a large Pay-As-You-Go (PAYG) withholder. Mining Withholding Tax liabilities on payments made are paid on or before due dates in accordance with the PAYG withholding for large withholders guide issued by the Taxation Office. Figure 5.11 shows the total Mining Withholding Tax for 2014–15 and 2015–16.

Total equity

Figure 5.12 lists the ABA’s closing balances on 30 June in 2015 and 2016 as disclosed in the financial statements on an accrual basis, excluding future commitments.

Figure 5.11 Mining withholding tax, 2014–15 and 2015–16

Mining withholding tax 2014–15$’000

2015–16$’000

Mining Withholding Tax expenditure for the year 4,996 5,525


Figure 5.12 Total equity, at 30 June

Total equity 2014–15$’000

2015–16$’000

Balance carried forward from previous year 475,907 514,810

Income minus expenses - surplus 38,903 65,226

Closing balance as at 30 June 514,810 580,036

Note: Further details can be found in Part 4, financial statements. Total equity excludes future commitments.


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Management of the Aboriginals Benefit Account and its investment portfolio

The ABA investment strategy is focused on cash-flow requirements, preservation of the fund and management of risk. Monies that are surplus to immediate requirements are invested under section 58 of the PGPA Act.

To minimise the risk of any loss, section 58 of the PGPA Act restricts the

investment of public money to a limited number of specific low-risk investments such as government bonds, state and territory bonds, term deposits and negotiable cash deposits with a bank.

Figure 5.13 shows the term deposits that the ABA had with Australian banks on 30 June in 2015 and 2016.

Figure 5.13 Aboriginals Benefit Account investment portfolio at 30 June

2015$’000

2016$’000

Interest bearing deposits 490,840 551,500

Total ABA investment portfolio 490,840 551,500


ABA Advisory Committee

The ABA Advisory Committee (the committee) is established under subsection 65(1) of the Land Rights Act to advise the Minister on beneficial payments under subsection 64(4) of the Land Rights Act. In 2015–16 the committee provided input to policy and programme development, formulated advice to the Minister in relation to beneficial payments on 125 applications for funding worth $100 million.

As at 30 June 2016 the committee was chaired by Mrs Patricia Brahim and consisted of 14 members elected by the four Northern Territory Land Councils.

During 2015–16 the Minister announced reforms to the operation of the committee including the introduction of independent members. These reforms seek to bring expertise in land management, business or financial management to the committee.

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APPENDIX B ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT ANNUAL REPORT 2015–16

Aboriginal and Torres Strait Islander Land Account overview

Role and functions

The Aboriginal and Torres Strait Islander Land Account (ATSILA) was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999, and is continued in existence by section 192W(1) of the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act). The ATSILA is a Special Account for the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

ATSILA was established to recognise that many Indigenous people will be unable to assert native title rights because they were dispossessed of their lands and therefore cannot demonstrate the continuous connection with land necessary to prove native title.

The ATSILA was credited over a ten year period from 1994 with direct appropriations and became a self-sustaining capital fund from 30 June 2004. ATSILA had a balance of $2 billion as at 30 June 2016, full details of the ATSILA 2015–16 Financial Statements are included in Part 4.

The purpose of ATSILA is to make payments to the Indigenous Land Corporation (ILC), an independent statutory authority established under the ATSI Act to assist Aboriginal and Torres Strait Islander people to acquire and manage land.


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Operating environment

Since 2010, the ATSI Act requires that a minimum annual payment of $45 million be made to the ILC, indexed in each subsequent year according to the Consumer Price Index. The minimum payment will be made in all years, even if the amount paid would reduce the real capital value of ATSILA. This is to ensure a certain and regular funding stream for the ILC to allow it to carry out its legislated functions.

In addition to the minimum amount, the ATSI Act allows for the payment of additional amounts to the ILC from ATSILA in years where the actual balance of ATSILA is greater than that required to maintain its real capital value.

Figure 5.14 details the payments made to the ILC since the amendments were made to the ATSI Act in 2010.

Investments of the Land Account

For the financial year 2015–16, investment activities were undertaken by departmental officials in accordance with section 58 of the PGPA Act as required by section 192W(3) of the ATSI Act and in compliance with an Investment Policy agreed between ATSILA’s Consultative Forum and the department’s Chief Financial Officer, who is the Finance Minister’s Delegate for the purposes of the PGPA Act.

The investment objectives are to achieve a return on the investments, which will preserve the capital value of the fund in real terms and cover the annual payment to the ILC. This equates to a return of at least the CPI +2.6 per cent per annum.

Figure 5.14 Summary of payments to ILC 2010–2016

Year Annual payment$’000

Additional payment $’000

Total payment$’000

2010–11 45,000 - 45,000

2011–12 46,395 4,939 51,334

2012–13 47,462 18,440 65,902

2013–14 48,553 3,910 52,463

2014–15 49,865 - 49,865

2015–16 50,712 - 50,712

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Allowable investments under section 58 of the PGPA Act include conservative low-risk investments such as government bonds, semi government bonds (state or territory) and term deposits with a bank. The ATSILA’s investments are comprised of term deposits with Australian banks as at 30 June 2016.

Figure 5.15 provides the return on investments for the 2012–13 year onwards.

Figure 5.15 Return on investments

Year Revenue$’000

Return on Investments %

2012–13 95,685 5.05

2013–14 79,382 4.11

2014–15 69,834 3.57

2015–16 59,724 3.02

Consultative Forum

The ATSI Act requires the establishment of a consultative forum on investment policy of the ATSILA to meet at least twice each financial year (section 193G). The ATSILA’s Consultative Forum comprises the department’s Chief Financial Officer and two ILC Directors elected by the ILC Board. The purpose of the Consultative Forum is to discuss the investment policy of the Land Account. Four meetings of the Consultative Forum were held in 2015–16, the first on 1 October 2015, the second on 14 December 2015, the third on 11 March 2016 and the fourth on 16 June 2016.

APPENDIX C REGISTRAR OF INDIGENOUS CORPORATIONS REPORT 2015–16

The Registrar of Indigenous Corporations is an independent statutory office holder who administers the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). The Registrar’s role is to register and regulate Aboriginal and Torres Strait Islander corporations registered under the CATSI Act.

The total number of registered corporations as at 30 June 2016 was 2,781, including 156 registered native title bodies corporate. During 2015–16 there were 177 new corporations registered under the CATSI Act. Of these, 25 were existing entities that transferred to the CATSI Act from other incorporation legislation.

The Registrar works with Aboriginal and Torres Strait Islander people to strengthen the capability and governance of corporations and to empower members and directors to take an active role in the management of their corporations.

During 2015–16 the Registrar provided a range of information and advice on the CATSI Act and how to run corporations. This included fact sheets, information guides, policy statements, templates and other resources. The Registrar also:


PAGE 206

è processed 9,473 documents and inquiries

è provided corporate governance training to 865 people from 208 corporations

è finalised 748 complaints involving corporations

è finalised 34 disputes involving corporations.

In 2015–16 the Registrar established a new regional office in Brisbane. This extends the network of officers in key regional locations with large concentrations of Aboriginal and Torres Strait Islander corporations. Other offices exist in Darwin, Alice Springs, Coffs Harbour, Broome, Perth and Cairns.

In October 2015 the Registrar, in partnership with the Business Council of Australia, launched a new online service that matches prospective independent directors to corporations—Independentdirectory. This allows corporations to find skilled professionals to join their boards.

Corporations also had access to a range of other services:

è LawHelp—28 corporations sought free legal assistance from some of Australia’s leading law firms.

è ORIC recruitment assistance—10 corporations requested help in recruiting for senior roles.

è Corporation jobs—37 corporations advertised job advertisements for free on www.oric.gov.au.

The Registrar aims for high reporting compliance rates because they ensure accurate and up-to-date information is available in the public Register of Aboriginal and Torres Strait Islander Corporations. The register is maintained by the Registrar and is available at www.oric.gov.au. High reporting compliance also aids the Registrar to identify corporations at risk of corporate failure. Corporations have increased their reporting compliance from 24 per cent in 2001–02 to 97 per cent in 2015–16. The rate has been above 95 per cent for the past six years.

The Registrar has the power under the CATSI Act to examine the books of an Aboriginal or Torres Strait Islander corporation. This power is used to identify issues at an early stage and before they incur serious consequences for a corporation. An examination may be instigated as part of the Registrar’s rolling programme or in response to complaints or other concerns about a corporation. In 2015–16 the Registrar completed formal examinations of the governance standards and finances of 39 corporations.

When problems are identified the Registrar has a range of responses available depending on the circumstances. During 2015–16 the Registrar:

è issued compliance notices to 27 corporations requiring them to rectify specific governance problems and/or financial irregularities identified at their corporation

Part 5: Appendices

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http://www.oric.gov.au

è used the unique power under the CATSI Act to appoint special administrators at 10 corporations to address serious governance and financial problems. Five special administrations were carried over from the previous financial year, while 11 special administrations were completed in 2015–16 with all successfully handed back to members’ control. Four remained in progress as at 30 June 2016.

Enforcing the CATSI Act and taking action to address wrongdoing remained a priority. In 2015–16 the Registrar concluded 16 minor regulatory prosecutions against corporations that failed to meet their reporting obligations.

Since 2007–08 requests to the Registrar under the Freedom of Information Act 1982 (FOI Act) have increased by 6,500 per cent and resources have

had to be diverted by the Registrar from other programs to meet the extra work. In June 2016 the Australian Information Commissioner made, upon an application by the Registrar, a declaration that a particular person was a vexatious applicant. The number of FOI requests that can be made by the person to the Registrar has been restricted for a period of 12 months.

The Registrar considers a range of factors to ensure that the exercise of his powers is focused on the most appropriate matters and that the finite resources of his office are directed appropriately. The Registrar’s budget allocation for 2015–16 was $8.38 million, down from $8.95 million in the previous year (see Figure 5.16 below). As at 30 June 2016 the Registrar’s work was performed by 46.6 full-time equivalent staff. Of these, 47.9 per cent identified as Aboriginal and Torres Strait Islander.

Figure 5.16 Funding and expenditure figures for ORIC, 2015–2016

Division Total 2015–16 Budget

Total 2015–16 Expenditure

2015–16 Variance Surplus/(Deficit)

Office Of the Registrar of Indigenous Corps (ORIC)

$8.380m $8.416m ($0.037m)


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APPENDIX D SUPPORTING THE NATIONAL AUSTRALIA DAY COUNCIL

The National Australia Day Council (NADC) is a Commonwealth owned, not-for-profit company within the Prime Minister’s portfolio, subject to the reporting and accountability requirements in Chapter 3 of the PGPA Act and a company limited by guarantee under the Corporations Act 2001. NADC promotes the meaning of, and participation in, Australia Day and the Australian of the Year Awards. More information about NADC can be found

on the National Australia Day Council website (www.australiaday.org.au). In 2015–16 the Government provided approximately $3.8 million to NADC, administered through the department. NADC performed effectively during the year and provided acceptable financial, audit and progress reports on its funded activities within the timeframes stipulated in the grant funding provisions.

Part 5: Appendices

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http://www.australiaday.org.au

PART 6

Glossary and indexes

Compliance index 211

List of abbreviations 220

Glossary of key terms 221

Alphabetical index 222

COMPLIANCE INDEX

This schedule is made for subsection 46(3) of the Act.

Figure 6.1 Compliance index

PGPA Rule Ref *

Description Requirement Location Page no.

17AD(g) Letter of transmittal (including statement that report has been prepared in accordance with section 46 of the Act (and any enabling legislation specifying additional requirements)

Mandatory iii

17AJ(a) Table of contents Mandatory x–xi

17AJ(b) Alphabetical index Mandatory 222

17AJ(c) Glossary Mandatory 221

17AJ(d) List of Requirements Mandatory 211

17AJ(e) Contact officer(s) Mandatory ii

17AJ(f) Internet home page address and Mandatory ii

17AJ(g) Electronic address of report Mandatory ii

17AD(a) Review by accountable authority of the entity (Secretary)

Mandatory v

17AE(1)(a) (i) A description of the role and functions of the entity

Mandatory 3–4

17AE(1)(a) (ii) A description of the organisational structure of the entity

Mandatory 3–4

17AE(1)(a) (iii) A description of the outcomes and programmes administered by the entity

Mandatory 5–6

17AE(1)(a) (iv) A description of the purposes of the entity as included in corporate plan

Mandatory 6,9

17AE(1)(b) An outline of the structure of the portfolio of the entity

Mandatory 1–2

Part 6: Glossary and indexes

PAGE 211


PGPA Rule Ref *


17AE(2) Where outcome and programme structures differ from PB Statements/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements) prepared for the entity for the period, include details of variation and reasons for change.

Mandatory Not Applicable

17AD(c)(i);16F Annual performance statement in accordance with paragraph 39(1)(b) of the Act and section 16F of the Rule.

Mandatory 9–47

17AF(1)(a) A discussion and analysis of the entity’s financial performance

Mandatory 65

17AF(1)(b) A table summarising the total resources and total payments of the entity.

Mandatory 67

17AF(2) If there may be significant changes in the financial results during or after the previous or current reporting period, information on those changes, including: the cause of any operating loss of the entity; how the entity has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the entity’s future operation or financial results.

If applicable, Mandatory

Not Applicable

17AG(2)(a) Information on compliance with section 10 (fraud systems)

Mandatory 51


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PGPA Rule Ref *


17AG(2)(b)(i) A certification by accountable authority that fraud risk assessments and fraud control plans have been prepared.

Mandatory iii, 51

17AG(2)(b)(ii) A certification by accountable authority that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place.

Mandatory iii, 51

17AG(2)(b)(iii) A certification by accountable authority that all reasonable measures have been taken to deal appropriately with fraud relating to the entity.

Mandatory iii, 51

17AG(2)(c) An outline of structures and processes in place for the entity to implement principles and objectives of corporate governance.

Mandatory 49

17AG(2)(d) – (e) A statement of significant issues reported to Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with Finance law and action taken to remedy non-compliance.

Mandatory 77

17AG(3) Information on the most significant developments in external scrutiny and the entity’s response to the scrutiny.

Mandatory 52–53


PAGE 213


PGPA Rule Ref *


17AG(3)(a) Information on judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the entity.


52–53

17AG(3)(b) Information on any reports on operations of the entity by the Auditor-General (other than report under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman.


52–53

17AG(3)(c) Information on any capability reviews on the entity that were released during the period.


Not Applicable

17AG(4)(a) An assessment of the entity’s effectiveness in managing and developing employees to achieve entity objectives.

Mandatory 54–61

17AG(4)(b) Statistics on the entity’s APS employees on an ongoing and non-ongoing basis; including the following:

è Statistics on staffing classification level;

è Statistics on full-time employees;

è Statistics on part-time employees;

è Statistics on gender;

è Statistics on staff location;

è Statistics on employees who identify as Indigenous.

Mandatory 54–56


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PGPA Rule Ref *


17AG(4)(c) Information on any enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999.

Mandatory 58–59

17AG(4)(c)(i) Information on the number of SES and non-SES employees covered by agreements etc identified in paragraph 17AG(4)(c).

Mandatory 59

17AG(4)(c)(ii) The salary ranges available for APS employees by classification level.

Mandatory 60

17AG(4)(c)(iii) A description of non-salary benefits provided to employees.

Mandatory 60

17AG(4)(d)(i) Information on the number of employees at each classification level who received performance pay.


60

17AG(4)(d)(ii) Information on aggregate amounts of performance pay at each classification level.


60

17AG(4)(d)(iii) Information on the average amount of performance payment, and range of such payments, at each classification level.


60

17AG(4)(d)(iv) Information on aggregate amount of performance payments.


60

17AG(5) An assessment of effectiveness of assets management where asset management is a significant part of the entity’s activities.


77

17AG(6) An assessment of entity performance against the Commonwealth Procurement Rules.

Mandatory 75


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PGPA Rule Ref *


17AG(7)(a) A summary statement detailing the number of new contracts engaging consultants entered into during the period; the total actual expenditure on all new consultancy contracts entered into during the period (inclusive of GST); the number of ongoing consultancy contracts that were entered into during a previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

Mandatory 76

17AG(7)(b) A statement that “During [reporting period], [specified number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period, involving total actual expenditure of $[specified million]”.

Mandatory 76

17AG(7)(c) A summary of the policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged.

Mandatory 76

17AG(7)(d) A statement that “Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.”

Mandatory 76


PAGE 216


PGPA Rule Ref *


17AG(8) If an entity entered into a contract with a value of more than $100, 000 (inclusive of GST) and the contract did not provide the Auditor-General with access to the contractor’s premises, the report must include the name of the contractor, purpose and value of the contract, and the reason why a clause allowing access was not included in the contract.


75

17AG(9) If an entity entered into a contract or there is a standing offer with a value greater than $10,000 (inclusive of GST) which has been exempted from being published in AusTender because it would disclose exempt matters under the FOI Act, the annual report must include a statement that the contract or standing offer has been exempted, and the value of the contract or standing offer, to the extent that doing so does not disclose the exempt matters.


Not Applicable

17AG(10)(a) A statement that “[Name of entity] supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.”

Mandatory 75


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PGPA Rule Ref *


17AG(10)(b) An outline of the ways in which the procurement practices of the entity support small and medium enterprises.

Mandatory 75–76

17AG(10)(c) If the entity is considered by the department administered by the Finance Minister as material in nature—a statement that “[Name of entity] 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’s website.”


76

17AD(e) Inclusion of the annual financial statements in accordance with subsection 43(4) of the Act.

Mandatory 79

17AH(1)(a)(i) If the entity conducted advertising campaigns, a statement that “During [reporting period], the [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.”


Not Applicable

17AH(1)(a)(ii) If the entity did not conduct advertising campaigns, a statement to that effect.


76


PAGE 218


PGPA Rule Ref *


17AH(1)(b) A statement that “Information on grants awarded by [name of entity] during [reporting period] is available at [address of entity’s website].”


77

17AH(1)(c) Outline of mechanisms of disability reporting, including reference to website for further information.

Mandatory 57

17AH(1)(d) Website reference to where the entity’s Information Publication Scheme statement pursuant to Part II of FOI Act can be found.

Mandatory 53

17AH(1)(e) Correction of material errors in previous annual report


Not Applicable

17AH(2) Information required by other legislation

Mandatory 62–64


PAGE 219

LIST OF ABBREVIATIONS

Figure 6.3 Abbreviations

APEC Asia–Pacific Economic Cooperation forum

APS Australian Public Service

COAG Council of Australian Governments

FOI Freedom of information

G20 Group of Twenty

IAS Indigenous Advancement Strategy

ISO International standard

KPI Key performance Indicator

MP Member of Parliament

OECD Organisation for Economic Co-operation and Development

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PGPA Act Public Governance, Performance and Accountability Act 2013

QoN Question on Notice

RSAS Remote School Attendance Strategy

VTEC Vocational Training and Employment Centres

WHS Act Work Health and Safety Act 2011

WHS Work Health and Safety


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GLOSSARY OF KEY TERMS

Administrative Arrangements Order (AAO): an order, issued by the Governor-General on advice from the Prime Minister, which indicates the principal matters dealt with by each Department of State and the legislation administered within each portfolio.

Agency: a Department of State, Department of Parliament and prescribed agency under Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Budget: the Australian Government Budget sets out the fiscal and economic outlook for Australia, and includes expenditure and revenue estimates for the current financial year, the Budget year and the three forward financial years.

Closing the Gap: a commitment by all Australian governments to improve the lives of Aboriginal and Torres Strait Islander people. A national integrated Closing the Gap strategy has been agreed through COAG.

Council of Australian Governments (COAG): the peak intergovernmental forum in Australia, comprising the Prime Minister, state premiers, territory chief ministers and the President of the Australian Local Government Association.

Enterprise agreement (EA): an agreement about the terms and conditions of employment, made under the Fair Work Act 2009.

Key performance indicators (KPIs): used to assess and monitor the department’s performance.

NAIDOC Week: held each July to celebrate the history, culture and achievements of Aboriginal and Torres Strait Islander people.

NAPLAN: the National Assessment Programme – Literacy and Numeracy is an annual assessment for students in Years 3, 5, 7 and 9.

Portfolio Additional Estimates Statements (PAES): the statements of changes since the Budget to the proposed allocation of resources.

Portfolio Budget Statements (PBS): explain where appropriated funds are to be spent for the portfolio.

Secretary’s Instructions: instructions and guidance provided for accountability requirements under the PGPA Act.


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ALPHABETICAL INDEX

Aabbreviations, 220Aboriginal and Torres Strait Islander Act

2005, 204Aboriginal and Torres Strait Islander

Employee Network, viAboriginal and Torres Strait Islander

employees, departmental, vi, 54, 56Aboriginal and Torres Strait Islander

Employment Strategy, departmental, 56Aboriginal and Torres Strait Islander Land

Account, 66, 77Annual Report 2015–16, 204–206financial statements, 171–189

Aboriginal and Torres Strait Islander Peoples Recognition Act 2013, 44

Aboriginal Hostels Ltd, 1Aboriginal Land Commissioner, 2, 38Aboriginal Land Rights Act (Northern

Territory) 1976, 38, 191, 193, 194, 196, 197, 199, 200, 201, 203

Aboriginals Benefit Account, 66, 77Annual Report 2015–16, 191–203financial statements, 149–170

accidents and incidents, employee, 62–63accountability and management, 49–77accountable authority, introductory

statement, 9administered activities, financial

performance, 66–75; see also financial statements; resourcing statement

Administrative Appeals Tribunal decision, 52Administrative Arrangements Order, 3, 31;

see also machinery of government changesadvertising and market research, 76–77Advisory Committee, Aboriginals Benefit

Account, 191, 193, 200, 203Afghanistan conflict, response to, 19, 20age of staff, 55; see also staff statisticsAgricultural Competitiveness White Paper, 22

airport facilitations, 16alcohol and drug abuse, reduction efforts,

23, 41, 42Angurugu, township lease, 38Anindilyakwa Land Council, 1, 191Annual performance statement, 8–47Annual Report 2015–16

Aboriginal and Torres Strait Islander Land Account, 204–206

Aboriginals Benefit Account, 191–203Registrar of Indigenous Corporations,

206–208ANZLIC, support for, 30ANZLIC Foundation Spatial Data

Framework, 30APEC meeting, viii, 13, 26Application Programming Interface (API)

enabled resources, 30Approval and Administration of

Commonwealth Funding for the East West Link Project, 52

APS Code of Conduct, 51APS Gender Equality Strategy 2016–19, vi, 25APS Indigenous Pathways Graduate

Programme, 58Asia-Pacific Economic Cooperation (APEC)

forum, viii, 13, 26asset management, 77assets, administered, 66; see also financial

statements; resourcing statementAssistant Cabinet Secretary, v, 2Assistant Minister for Cities and Digital

Transformation, v, 2, 28Assistant Minister to the Prime Minister, v, 2Assistant Ministers, support for, v, 4, 31asylum seeker policy; see border security

mattersAtomic Energy Act 1953, 197attendance rates, school, 39–40


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Attorney-General’s Department Enterprise Agreement 2011, 58

auditexternal, 47, 52; see also Australian

National Audit Office (ANAO)internal, 50

Audit Committee, 50Auditor-General, 75; see also Australian

National Audit Office (ANAO)AUSMIN meeting, 20AusTender, 75, 76Austrade, 39Australia Day Awards, 209Australia Day celebrations, 16Australia-New Zealand Counter Terrorism

Committee (ANZCTC), 20Australian Antarctic Strategy, development

of, 11Australian Government Crisis Committee, 18Australian Government Crisis Management

Framework, review of, 18Australian Government Public Data Policy

Statement, 29Australian Government Regulator

Performance Framework, 27Australian Infrastructure Plan, 11Australian National Action Plan on Women,

Peace and Security 2012–2018, 26Australian National Audit Office (ANAO)

access clause, 75audit of Indigenous Advancement

Strategy implementation, 52audit of Indigenous Home Ownership

Programme, 47, 52independent auditor’s report


Aboriginals Benefit Account, 149–150Department of Prime Minister and

Cabinet, 79–80multi-portfolio performance audits, 52

Australian of the Year Awards, 16, 209Australian Public Service Code of Conduct, 51Australian Public Service Commission, 1, 25Australian Public Service Gender Equality

Strategy 2016–19, vi, 25

Australian Public Service Indigenous Pathways Graduate Programme, 58

Australian Renewable Energy Agency (ARENA), 11

Australian Rural Leadership Foundation, 44Australian War Memorial, 21

BBalancing the Future: Australian Public Service

Gender Equality Strategy 2016–19, vi, 25Behavioural Economics Team (BETA), viii, 23beneficial grant payments, 193, 194, 200, 203bilateral relationships, 13–14; see also

bilateral visits, Prime Minister’s; free trade agreements

bilateral visits, Prime Minister’s, viii, ix, 13–14, 15boarding facilities construction, Melville

Island, 46border security matters, 4, 21briefs, ministerial, 30, 31Budget processes, support for, viii–ix, 3, 4Building Management Committee, 64bushfire assistance, 12, 18; see also disaster

recovery, communitybusiness transformation agenda, ix

CCabinet, support services to, v, 4, 30–31Cabinet Handbook, 30Cabinet Secretary, v, 2, 22cadetships, Indigenous, 34, 40career advisory service, 61caretaker arrangements, advice on, 12, 53Central Land Council, 1, 191ceremonial and hospitality support, 14–17Chairman of the National Development and

Reform Commission, People’s Republic of China, official visit from, 16

Chief Financial Officer’s financial statements, 81, 151, 173

Chief Secretary for Administration, Hong Kong Administrative Region, official visit from, 16


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Children and Schooling Programme, 39–41China

free trade agreement with, ixGuest of Government visit, 16Prime Ministerial visit to, viii, ix, 13, 15

China Australia Free Trade Agreement, ixCHOGM meeting, viii, 13, 15cities policy, viii, 3, 28–29Cities taskforce, transfer from Department

of Environment, viii, 9City Deals, 28–29classifications, staff, 55Clean Energy Finance Corporation (CEFC), 11Clean Energy Innovation Fund (CEIF), viii, 11clean energy research, investment in, viii, 22climate change conference, 2015, viii, 13, 15,

22; see also COP21 meeting; Paris Climate Conference; United Nations Framework Convention on Climate Change (UNFCCC) Conference

Closing the Gap report, viCOAG; see Council of Australian

Governments (COAG)Code of Conduct (APS), 51Comcare, 62–63committees, departmental, 49–50Commonwealth companies, 1Commonwealth Contracting Suite, 75Commonwealth Electoral Act 1918, 76Commonwealth entities, 1Commonwealth Heads of Government

Meeting (CHOGM), viii, 13, 15Commonwealth Indigenous Advancement

Strategy tendering processes, 53Commonwealth Procurement Rules 2014,

75, 76Commonwealth Scholarship Programme, 41Community Business Partnership, 12Community Development Programme,

33, 35Community Engagement Police Officers, 42Community Stores Infrastructure Project,

193, 196companies, Commonwealth, 1complaints management, 51compliance index, 211–219

Compliance sub-committee, 51Comprehensive Strategic Partnership with

Singapore, 14Confidentiality in Government Contracts:

Senate Order for Departmental and Entity Contracts (Calendar Year 2014 Compliance), 52

constitutional recognition of Indigenous Australians, vii, 43–44

consultants, 76consultative forum, Aboriginal and Torres

Strait Islander Land Account, 206contact, departmental, iicontracts, vii, 34, 75, 76COP21 meeting, viii, 15; see also Paris Climate

Conference; United Nations Framework Convention on Climate Change (UNFCCC) Conference

corporate Commonwealth entities, 1corporate governance, 49–51Corporate Plan 2015–19, 5Corporate Plan 2016–20, 10Corporations (Aboriginal and Torres Strait

Islander) Act 2006, 45, 206Corporations Act 2001, 209correspondence, ministerial, 31Council for the Order of Australia, 12Council of Australian Governments (COAG),

3, 23, 39Advisory Panel on Violence Against

Women, 24–25best practice regulation requirements, 27Closing the Gap targets, vi, 35, 40meetings, ix, 16, 22

counter-terrorism matters, 4, 20–21; see also Office of the Counter-Terrorism Coordinator, establishment of

country of origin labelling reforms, 24crime prevention, 41, 42crisis management, 18cultural audit, ixculturally and linguistically diverse staff,

54–56Culture and Capability Programme, 43–45Cyber Policy and Information Management

Policy Groups, 19


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cyber security, viii, 4, 18–19Cyber Security Roundtable, 19Cyber Security Strategy, viii, 18Cyclone Winston, 18

DData Sharing for Australian Government

Entities, 29data.gov.au, 29DataStart, 29Defence Estate projects, 21Defence Force Remuneration Tribunal, 2defence policy, 4, 14, 19–21Defence White Paper, 21deliverables

Outcome 1: Prime Minister and Cabinet, 10, 14, 18, 24, 26, 28, 29, 30, 31, 32

Outcome 2: Indigenous, 33, 39, 41, 43, 44, 45, 46

see also key performance indicatorsdental reform package, 11Department of Broadband, Communications

and the Digital Economy Enterprise Agreement 2011–14, 58

Department of Communications Annual Report 2014–15, 30

Department of Defence, progress on gender equality, vi

Department of Education, Employment and Workplace Relations Enterprise Agreement 2012–14, 59

Department of Education and Training, 12Department of Employment, 25, 36Department of Environment, 9, 11, 22

transfer of Cities taskforce, viiiDepartment of Families, Housing, Community

Services and Indigenous Affairs Enterprise Agreement 2012–14, 59

Department of Finance, vii, 10, 77Department of Finance and Deregulation

Enterprise Agreement 2011–14, 59Department of Foreign Affairs and Trade,

11, 22progress on gender equality, vi

Department of Health, 23Department of Health and Ageing Enterprise

Agreement 2011–14, 59Department of Industry and Science, 22, 197Department of Regional Australia, Regional

Development and Local Government Enterprise Agreement 2011, 59

Department of Social Services, 12Department of Sustainability, Environment,

Water, Population and Communities Enterprise Agreement 2011–14, 59

departmental activities, financial performance, 65; see also financial statements; resourcing statement

departmental structure, 3–4Deputy Secretaries Data Group, 30deregulation policy, 26–27, 52; see also

red tape reduction measures; regulatory reforms, business

Developing Northern Australia White Paper, viii, 11, 37, 38

development and training, staff, 61Dhimurru Aboriginal Corporation, 194Digital Transformation Office, vii, 1, 3Disability Action Plan, departmental, vi, 56, 57Disability Champion, 56disability insurance; see National Disability

Insurance Scheme (NDIS)disaster recovery, community, 12, 18diversity, workplace, 54–56Diversity Champion, 56Domestic and Family Violence Policy, launch

of, vi, 57Domestic Policy Group, 3domestic violence prevention initiatives,

v–vi, 24–25, 57Indigenous communities, 25, 42

drug and alcohol abuse, reduction efforts, 23, 41, 42

Duchess of Cornwall, visit to Australia, 15Due Diligence Framework, 62Due Diligence Manual, 62


PAGE 225

Eearly childhood education, 23Earth Hour, participation in, 64East Asia Summit, viii, 13, 15Ebola Virus, interagency collaboration

on, 18ecologically sustainable development and

environmental performance report, 63–64economic policy, ix, 11education, employment and social services

policy, 12, 23education programmes, Indigenous, 39–41Efficiency through Contestability

Programme, 53eLearning, 61election, general, v, 12emission reduction target, viii, 22employee statistics, 54–56Employment Parity Initiative, 34employment policy, Indigenous, 33–39Empowered Communities design

process, 46energy conservation measures, 63, 64enterprise agreements, 58–59enterprise tax plan, 11entry level employment programmes, 58Environment Protection and Biodiversity

Conservation Act 1999, 63Environmental Management System, 64environmental performance, departmental,

63–64Environmental Policy Statement,

departmental, 63Estonia, Ministerial visitors from, 16ethical standards, 51Ethics Advisory Service, 51Ethics Contact Officer Network, 51European Union

trade negotiations with, ixUnited Kingdom referendum on

membership, 14events coordination, 14–17Executive Director of Township Leasing, 2Executive Leadership Group, 50exempt contracts, 75

expenses, 66, 70–74; see also financial statements; resourcing statement

external scrutiny, 52–53; see also Australian National Audit Office (ANAO)

Ffamily violence, prevention of; see domestic

violence prevention initiativesFederal Executive Council, support for,

30–31female staff, 54, 56Financial Management and Accountability

Act 1997, 10financial performance summary, 65–77

Aboriginals Benefit Account, 195see also financial statements; resourcing

statementfinancial statements


Aboriginals Benefit Account, 149–170Department of the Prime Minister and

Cabinet, 79–148Finland, Ministerial visitors from, 16fiscal policy, 11Flexibility Arrangements, 60Flight MH17, 16, 18Flight MH370, 18Force Posture Initiative (FPI), 20foreign aid, 4Foreign Investment Review Board (FIRB)

applications, 21foreign policy; see international policyfraud control, 51free trade agreements, ix, 14Freedom of Information Act 1982, 31, 52,

75, 208Functional and Efficiency Review, ix, 53functions, departmental, 3Future Submarines programme, viii


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GG20 Leaders’ Summit, viii, 13, 15, 26Garma Festival of Traditional Culture, 44Gender Champion, 56gender equality priorities, vi, 3, 25; see also

women’s policy and programmesGender Equality Strategy 2016–19, vi, 25Geocoded National Address File (G-NAF), 29Germany

Ministerial visitors from, 16Prime Ministerial visit to, viii, ix, 15

glossary of key terms, 221governance arrangements, internal, 49–51Governance Group, 3, 4government regulations, reducing burden of;

see deregulation policy; red tape reduction measures; regulatory reforms, business

Governor-General, support for, 31Governors-General, former, 32Graduate Programme, 58grant programmes, 35, 77Groote Eylandt township leases, 38Group of Twenty (G20); see G20 Leaders’

SummitGuest of Government visits, 14, 15–16Guidance on Caretaker Conventions, 53Gunyangara, township lease, 38

HHeads of Agreement for public hospitals

funding, 23Heads of Government visits, 15–16; see also

Guest of Government visitsHealing Foundation, 44health policy, 11, 23, 24higher education policy, 12, 23, 40–41homelessness policy issues, 23Hong Kong, official visitors from, 16honours and symbols policy, 12hospitality services, 14–17hospitals funding, agreement on, 23housing policy issues, 46–47human resource management, 54–63humanitarian intake, refugees, 14

I‘Ice’ use, interagency collaboration on

addressing, 23Implementation Steering Committee

(National Innovation and Science Agenda), 22

Implementing the Deregulation Agenda: Cutting Red Tape, 52

in-community presence, departmental, 3Inclusion and Diversity Committee, viincome, 66; see also financial statements;

resourcing statementIncome Tax Assessment Act 1936, 202Income Tax (Mining Withholding Tax) Act

1979, 202independent auditor’s report; see Australian

National Audit Office (ANAO)Independent National Security Legislation

Monitor, 2Independent Parliamentary Entitlements

System, 12India

Ministerial visitors from, 16trade negotiations with, ix

Indian Ocean Tsunami, memorial for lives lost, 16

Indigenous Advancement Strategy, 33–47, 53Indigenous Affairs Group, 3, 4Indigenous Australian Government

Development Programme, 58Indigenous Australians, constitutional

recognition of, vii, 43–44Indigenous Broadcasting Services, 44Indigenous Business Australia, 1Indigenous Cadetship Support Programme, 40Indigenous cadetships, 34, 40Indigenous Champion, 56Indigenous employees, departmental, vi,

54, 56Indigenous Enterprise Development

Programme, 34Indigenous Home Ownership Programme,

47, 52Indigenous Land Corporation, 1Indigenous Pathways Graduate Programme, 58


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Indigenous policy and programmes, vi–vii, 3, 4, 32–47; see also Indigenous Procurement Policy

Indigenous Policy Committee of Cabinet, viIndigenous Procurement Policy, vii, 34, 75Indigenous Protected Area projects, 34, 37Indigenous Student Success in Higher

Education measure, 41Indigenous Support Programme, 41Indigenous Wage Subsidy, cessation of, 36Individual Flexibility Arrangements, 60Indonesia

Ministerial visitors from, 16Prime Ministerial visit to, viii, 15

Information Publication Scheme, 53Infrastructure Australia, 11infrastructure policy, 11Injalak Arts & Crafts Aboriginal Association

Incorporated, 194Innovation and Science Agenda, viii, 12, 22Innovation and Science Committee of

Cabinet, 22inoperative staff, 54interagency collaboration, 22; see also whole

of government approachinternal audit, 50internal governance, 49–51international policy, 4, 12–14International Women’s Day breakfast, viinterpreters, Indigenous, 44Introductory Statement, performance

analysis, 9Iraqi conflict, response to, 19, 20Iraqi refugee crisis, response to, 14ISIL/Daesh, efforts to combat, 14

JJapan

agreement on innovation, science and technology, viii, 14

Prime Ministerial visit to, ix, 15job seekers, Indigenous, services for, 33–39jobactive, 36Jobs, Land and Economy Programme, 33–39

Jobs for Families Childcare Package, 12Joint Committee of Public Accounts and

Audit, 53Joint Commonwealth and Tasmanian

Economic Council, 11judicial decisions, 52

KKalaw Kawaw Ya language, 44Kenbi Aboriginal Land Trust, vii, 38Kenbi Land Claim, 38; see also Kenbi

Aboriginal Land Trustkey performance indicators, 9

Outcome 1: Prime Minister and Cabinet, 10, 12, 14, 18, 22, 24, 26, 29, 30, 32

Outcome 2: Indigenous, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47

Lland rights, Indigenous; see native titleLeaders’ Retreat, 16, 23Leaders’ Summit (G20), viii, 13, 15, 26leadership capabilities, staff, 61learning and development, staff, 61legal policy matters, 4, 12legislation programme, 31letter of transmittal, iiiLGBTI Champion, 56LGBTI Network, viliabilities, 67; see also financial statements;

resourcing statementLindt café coronial inquiry, 20Lobbying Code of Conduct, 12locations, staff, 3, 54, 55, 193The Lodge, 32low aromatic fuel, introduction of, 43; see

also substance abuse, reduction effortsLow Aromatic Fuel Act 2013, 43


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Mmachinery of government changes, 12, 58;

see also Administrative Arrangements Order

Malaysia, East Asia Summit, viii, 13, 15Malaysia Airlines Flight MH17, 16, 18Malaysia Airlines Flight MH370, 18Male Champion of Change, vimale staff; see staff statisticsMalta, CHOGM, viii, 15management and accountability, 49–77market research and advertising, 76–77Massive Open Online Course (MOOC), 28medicinal cannabis, national regulations on, 11memoranda of understandings, on City

Deals, 29memorials, unveiling ceremonies, 16mental health reform agenda, 11Meriam Mir language, 44methylamphetamine use, coordinated

response to, 23Mid-Year Economic and Fiscal Outlook, 11Middle East, Prime Ministerial visit to, 15Milikapiti, township lease, 38Milingimbi and Outstations Progress

Resource Association Incorporated, 194Milyakburra, township lease, 38mining royalty equivalent receipts; see

royalty equivalent receiptsMining Withholding Tax, 202Minister Assisting the Prime Minister for

Counter-Terrorism, v, viii, 2Minister Assisting the Prime Minister for the

Public Service, v, 2Minister for Indigenous Affairs, v, 2Minister for Women, v, v–vi, 2, 24, 25ministerial briefs, 30, 31ministerial correspondence, 31ministerial level visits, 15–16Mission Innovation initiative, viii, 22Murdi Paaki Regional Assembly, 46Mutitjulu, township lease, 38MySchool website, 40

NNAIDOC activities, 44NAPLAN standards, 41National Aboriginal and Torres Strait Islander

Social Survey (NATSISS), 35, 40National Accreditation Authority for

Translators and Interpreters (NAATI), 44National Archives of Australia, 31National Assessment Programme - Literacy

and Numeracy (NAPLAN), 41National Australia Day Council, 1, 209National Australian Built Environment Rating

System, 63National Disability Insurance Scheme

(NDIS), 24National Disability Strategy 2010–20, 57National Ice Action Plan, 23National Ice Taskforce, 23National Innovation and Science Agenda,

viii, 12, 22National Intelligence Coordination

Committee, 19National Partnership Agreement on Remote

Indigenous Housing, 46–47National Partnership Agreement on Universal

Access to Early Childhood Education, 23National Partnership Agreements, 23, 46–47National Partnership on the National Quality

Agenda for Early Childhood Education and Care, 23

National Plan to Reduce Violence against Women and their Children 2010–2022, 25

National Security and International Policy Group, 3, 4

National Security Committee of Cabinet (NSC), 19, 21

national security considerations, 4, 18, 19–21; see also counter-terrorism matters; cyber security

NationalMap, 29, 30native title, vii, 37–39Native Title Representative Bodies and

Service Providers, funding for, 37Native Title Tribunal, 37natural disasters, response to, 12, 18


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NDIS; see National Disability Insurance Scheme (NDIS)

New Zealandagreement on innovation, science and

technology, viii, 14Prime Ministerial visit to, viii, 15

No Jab No Pay Vaccination Programme, 11non-corporate Commonwealth entities, 1non-ongoing staff, 54, 56non-proliferation issues, 4Northern Australia, development; see

White Paper on Developing Northern Australia

Northern Australia Infrastructure Facility (NAIF), 11

Northern Land Council, 1, 191Northern Territory Land Councils, payments

to, 191, 199Northern Territory (Self-Government) Act

1978, 197notifiable incidents, 62–63nuclear fuel cycle, submission to inquiry, 24numeracy standards, Indigenous

performance, 41

Ooccupational health and safety; see work

health and safetyOECD Services Trade Restrictiveness

Index, 26Office for Women, 24–26office locations, 3, 54, 55, 193Office of Best Practice Regulation, 27Office of National Assessments, 1Office of Parliamentary Counsel, 27Office of the Commonwealth Ombudsman, 1Office of the Counter-Terrorism Coordinator,

establishment of, viiiOffice of the Inspector-General of Intelligence

and Security, 1Office of the Official Secretary to the

Governor-General, 1Office of Township Leasing, 191, 201official establishments, 32

Official History of Australian peacekeeping, humanitarian and post-Cold War operations, Volume VI, 21

official hospitality and ceremonial support, 14–17

Official Residences, 32Ombudsman, Commonwealth, Office of, 1Omnibus Repeal Day (Autumn 2015) Act

2016, 27One Innovation Enterprise Agreement 2011, 59ongoing staff, 54, 56online learning resources, departmental, 61open data platforms, 29–30operating result, 65; see also financial

statements; resourcing statementOutback Stores Ltd, 1Outcome 1: Prime Minister and Cabinet,

6, 10–32expenses, 70–71

Outcome 2: Indigenous, 6, 32–47expenses, 72–75

outcome and programme structure, 5–6overseas visits, Prime Ministerial, viii, ix,

13–14, 15

PPacific Maritime Security Programme

(PMSP), 20‘paperless office’ initiatives, 64Papua New Guinea, Prime Ministerial visit to, 15Paris Climate Conference, 13; see also

COP21 meeting; United Nations Framework Convention on Climate Change (UNFCCC) Conference

Parliamentary Questions on Notice, 31Parliamentary Secretaries, Portfolio; see

Assistant Ministers, support forpart-time staff, 56; see also staff statisticspeople management, 54–63People Strategy 2014–16, 54people with disability

insurance for; see National Disability Insurance Scheme (NDIS)

staff, 56, 57


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People’s Republic of China; see Chinaperformance bonuses, 60Performance Framework, Aboriginals Benefit

Account, 193performance indicators; see key performance

indicatorsperformance management frameworks, 61performance reports

Outcome 1: Prime Minister and Cabinet, 10–32

Outcome 2: Indigenous, 32–47see also financial statements

petrol sniffing reduction initiatives, 43; see also substance abuse, reduction efforts

philanthropy, fostering culture of, 12Philippines, APEC meeting, viii, 13, 15Pirlangimpi, township lease, 38PM&C Enterprise Agreement 2011–14, 58police stations, construction of, 42population policy, 3Portfolio Additional Estimates, 2015–16, 5, 9Portfolio Budget Statement, 2015–16, 5, 9Portfolio Budget Statement, 2016–17, ixPortfolio Ministers, support services for, v, 4, 31portfolio structure, 1Predictive Optimisation software,

implementation, 64Prescribed Bodies Corporate, capacity

building, 37President of the United Republic of Tanzania,

visit to Australia, 16Primary Health Care Advisory Committee, 11Prime Minister

overseas visits, viii, ix, 13–14, 15support for, v, viii, ix, 31

Prime Minister of New Zealand, visit to Australia, 16

Prime Ministerial Statement, viii, 22Prime Minister’s XI cricket match, 16Prince of Wales, visit to Australia, 15private health insurance reforms, 11Procurement Initiatives to Support Outcomes

for Indigenous Australians, 52procurement policy and practices, 75–76; see

also Indigenous Procurement Policyproductivity gains, 60

Programme 1.1: Prime Minister and Cabinet, 6, 10–32

key performance indicators, 10, 12, 14, 18, 22, 24, 26, 29, 30, 32

Programme 2.1: Indigenous Advancement - Jobs, Land and Economy, 6, 33–39

key performance indicators, 34, 35, 36, 37, 38

Programme 2.2: Indigenous Advancement - Children and Schooling, 6, 39–41

key performance indicators, 39, 40, 41Programme 2.3: Indigenous Advancement -

Safety and Wellbeing, 6, 41–43key performance indicators, 41, 42, 43

Programme 2.4: Indigenous Advancement - Culture and Capability, 6, 43–45

key performance indicators, 43, 44, 45Programme 2.5: Indigenous Advancement -

Remote Australia Strategies, 6, 45–47key performance indicators, 46, 47

Programme 2.6: Indigenous Advancement - Programme Support, 6

programme and outcome structure, 5–6Protected Areas, Indigenous, 34, 37public data policy, vii, 3, 29–30Public Data Policy Statement, 29Public Governance, Performance and

Accountability Act 2013, 1, 9, 10, 76, 77, 191, 204

public hospitals funding, agreement on, 23Public Interest Disclosure Act 2013, review

of, 12Public Sector Data Management

Implementation Report, 29–30Public Service Act 1999, 51purchasing policy and practices, 75–76; see

also Indigenous Procurement Policypurposes, departmental, 6, 9, 32

Qquestions on notice, 31


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Rradio services, Indigenous, 44ranger positions, Indigenous, 34, 37, 194reading and numeracy standards, Indigenous

performance, 41Recognise campaign, 43; see also

constitutional recognition of Indigenous Australians

Reconciliation Action Plan, departmental, vi, 56

Reconciliation Australia, 43recruitment, staff, 58recycling measures, 63, 64red tape reduction measures, 26–27, 52;

see also deregulation policy; regulatory reforms, business

Redress Taskforce, establishment of, viiiReferendum Council, vii, 43, 44refugee crisis, response to, 14Regional Network, 4, 45, 193Register of Lobbyists, 12Registrar of Indigenous Corporations, 2, 45

Annual Report 2015–16, 206–208regulation impact statements, 27, 28Regulator Performance Framework, 27Regulatory Reform Agenda, 26, 27; see also

regulatory reforms, businessregulatory reforms, business, 26–28, 52;

see also deregulation policy; red tape reduction measures

rehabilitation programs, Indigenous, 41, 42Remote Australia Strategies Programme,

45–47remote broadcasting services, 44Remote Indigenous Home Loans, 47Remote Jobs and Communities

Programme, 33Remote Minor Community Planning

Scheme, 39Remote School Attendance Strategy, 39–40Remuneration Tribunal, 2renewable energy technology, support for, viiiReport 454, Early Years Quality Fund:

Review of Auditor-General’s Report No. 2013 (2014–15), 53

research and science policy; see National Innovation and Science Agenda

resourcing statement, 67–69revenue; see financial statements; resourcing

statementReview of Higher Education Access and

Outcomes for Aboriginal and Torres Strait Islander people, 41

Review of Medicines and Medical Device Regulation, 11

Review of Mental Health Programmes and Services, 11

risk management, 50, 193Risk Management Principles, Aboriginals

Benefit Account, 193role and functions

Aboriginal and Torres Strait Islander Land Account, 204

Aboriginals Benefit Account, 191–192departmental, 3

Royal Commission on Institutional Responses to Child Sexual Abuse, viii

Royal visits, 15–16Royalty Associations, 191, 199–200royalty equivalent receipts, 191, 193, 194, 197–198

Ssafety, employee, 62–63safety, women’s; see domestic violence

prevention initiativesSafety and Wellbeing Programme, 41–43salaries, staff, 60scholarships, Indigenous students, 41school attendance rates, 39–40science and research policy; see National

Innovation and Science Agendasecretariat services, 12, 19, 23, 24Secretaries’ Committee on National Security,

19, 31Secretaries Data Group, 30Secretaries Equality and Diversity Council, viSecretary, Department of the Prime Minister

and Cabinet and John Wood and Allan Asher [2015] AATA 945, 52

Secretary’s financial statements, 81, 151, 173


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Secretary’s Instructions, 49, 75, 77Secretary’s review of the year, v–ixsecurity, national, 4, 18, 19–21; see also

counter-terrorism matters; cyber securitySeisia Community Torres Strait Islander

Corporation, 46Senate Finance and Public Administration

References Committee, 53Senate Order on Departmental and Entity

Contracts, 52senior executive, departmental, 5Senior Officials Meetings, 22Sherpa meetings, 13Singapore

agreement on innovation, science and technology, viii

bilateral trade agreement with, 14small and medium enterprises, support for,

75–76Smart Cities Plan, 28Smart Cities Summit, 28South Australian Nuclear Fuel Cycle Royal

Commission, submission to, 24South China Sea, response to developments

in, 14Southern Stars Cricket Team, hospitality for, 16Spatial Information Council, 30Special Adviser on Cyber Security,

appointment of, viiispeeches, drafting of, 31Spring Repeal Day, 27Sri Lanka, Ministerial visitors from, 16staff development and training, 61staff statistics, 54–56state and territory governments,

collaboration with, 22, 23–24, 46–47; see also Council of Australian Governments (COAG); National Partnership Agreements

Statement of Financial Position, 65; see also financial statements; resourcing statement

status of women, 24–26; see also women’s policy and programmes

statutory office holders and bodies, 2Stop it at the Start, 24; see also domestic

violence prevention initiativesstrategic risk management plan, 50

Strengthening Organisational Governance policy, 45

structuredepartmental, 3–4outcome and programme, 5–6

study assistance scheme, 61substance abuse, reduction efforts, 23, 41,

42–43superannuation package, ix, 11Syrian conflict, response to, 19Syrian refugee crisis, response to, 14

TTailored Assistance Employment Grants, 35taskforces, establishment of, viii, 22–23Tasmania, economic development initiatives, 11tax package, ix, 11tenancy agreements, standardised, 47territory and state governments,

collaboration with, 22, 23–24, 46–47; see also Council of Australian Governments (COAG); National Partnership Agreements

terrorism; see counter-terrorism mattersThe Indigenous Business Australia -

Indigenous Home Ownership Programme (ANAO report), 52

The Treasury, 22, 23progress on gender equality, vi

Tiwi Islands, township leases, 38Tiwi Land Council, 1, 191Torres Strait Creole, 44Torres Strait Regional Authority, 1township leases, 38–39, 191, 201trade policy, ix, 4, 14; see also bilateral

relationships; free trade agreementstraining, staff; see staff development and

trainingtransmittal letter, iiiTransPacific Partnership, ix, 14Turkey, G20 meeting, viii, 13, 152015–16 Mid-Year Economic and Fiscal

Outlook, 112015–16 Portfolio Additional Estimates, 5, 92015–16 Portfolio Budget Statement, 5, 9


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2016 Defence White Paper, 212016 election, v, 122016–17 Budget, 11, 412016–17 Portfolio Budget Statement, ix

UUluru, ‘Handback’, celebration of, 44Umbakumba, township lease, 38United Arab Emirates, Ministerial visitors

from, 16United Kingdom, referendum on European

Union membership, 14United Nations Commission on the Status of

Women, 26United Nations Framework Convention on

Climate Change (UNFCCC) Conference, viii, 22; see also COP21 meeting; Paris Climate Conference

United States of America, Prime Ministerial visit to, ix, 15

UnitingCare, collaboration with, 25urban policy, viii, 3, 28–29

VValues (APS), 51Vietnam, Ministerial visitors from, 16violence against women and children,

prevention of, v–vi, 24–25, 57Indigenous communities, 25, 42

visiting dignitaries; see Guest of Government visits

Vocational Training and Employment Centres, 34, 35

volunteering, fostering culture of, 12

Wwage subsidy, Indigenous, cessation of, 36waste management, departmental, 63, 64water conservation measures, departmental,

63, 64wellbeing and safety, Indigenous

communities, 41–43

White Paper on Agricultural Competitiveness, 22

White Paper on Defence, 21White Paper on Developing Northern

Australia, viii, 11, 37, 38white papers, viii, 11, 21, 22, 38White Ribbon accreditation, 57whole of government approach, 3, 23, 24

emissions reduction, 22gender equality, 26Indigenous policy, vi, 4, 46innovation, science and technology, 14methylamphetamine use, 23national security, ix, 18, 21procurement, 75public data, vii, 29

Wickham River Land Claim, 38women staff, 54, 56women’s policy and programmes, 3, 24–26;

see also Office for Womenwomen’s safety; see domestic violence

prevention initiativesWomen’s Safety Package, 24Women’s Safety Taskforce, 24work health and safety, 62–63Work Health and Safety Act 2011, 62, 63Work Health and Safety Management

System, 62workforce diversity, vi, 56workforce profile, 55–56World Assembly for Women, 26World Shelters Conference, 26Wreck Bay Aboriginal Community Council, 1Wurankuwu, township lease, 38Wurrumiyanga, township lease, 38

YYarralin, township lease, 38year ahead, ixYumplatok language, 44

ZZika Virus, national response to, 11, 18


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Annual report team This report was developed by the annual report team with help from staff throughout the department. The 2015–16 annual report team comprised: Sam Skelton, Assistant Secretary; Governance, Audit and Reporting Branch, Chris Atkinson, Senior Adviser, Sue Lewis, Adviser, Patricia Lee, Adviser, Elizabeth Beyer, Adviser and Doug Eremas, Adviser.

Concept, design and typesetting

Stripe Design

Photographs

The 2015–16 annual report makes use of a range of images, including photographs provided for use in the report by other government agencies.


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www.dpmc.gov.au

Documents

Department of the Prime Minister and Cabinet Annual Report 2015-16