Environment and Energy Portfolio - Department of the ... CONTENTS PORTFOLIO OVERVIEW 1 Environment and Energy Portfolio overview 3 ENTITY RESOURCES AND PLANNED PERFORMANCE

Portfolio Budget Statements 2017-18

Budget Related Paper No. 1.7

Environment and Energy Portfolio

Budget Initiatives and Explanations of Appropriations Specified by Outcomes

and Programs by Entity

ii

© Commonwealth of Australia 2017

ISBN 978-1-921069-06-2

This publication is available for your use under a Creative Commons BY Attribution 3.0

Australia licence, with the exception of the Commonwealth Coat of Arms, the Department of the

Environment and Energy logo, photographs, images, signatures and where otherwise stated.

The full licence terms are available from

http://creativecommons.org/licenses/by/3.0/au/legalcode.

Use of Department of the Environment and Energy material under a Creative Commons BY

Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that

suggests that the Department of the Environment and Energy endorses you or your use of the

work).

Department of the Environment and Energy material used 'as supplied'

Provided you have not modified or transformed Department of the Environment and Energy

material in any way including, for example, by changing the Department of the Environment

and Energy text, calculating percentage changes, graphing or charting data, or deriving new

statistics from published Department of the Environment and Energy statistics – then the

Department of the Environment and Energy prefers the following attribution:

Source: The Australian Government Department of the Environment and Energy

Derivative material

If you have modified or transformed Department of the Environment and Energy material, or

derived new material from those of the Department of the Environment and Energy in any way,

then the Department of the Environment and Energy prefers the following attribution:

Based on the Australian Government Department of the Environment and Energy data

Use of the Coat of Arms

The terms under which the Coat of Arms can be used are set out on the It’s an Honour website

(see www.itsanhonour.gov.au)

Other uses

Enquiries regarding this licence and any other use of this document are welcome at:

First Assistant Secretary, Policy Analysis and Implementation Division, Department of the

Environment and Energy on 02 6274 1590.

http://creativecommons.org/licenses/by/3.0/au/deed.en


http://creativecommons.org/licenses/by/3.0/au/legalcode



http://www.itsanhonour.gov.au/

iii

THE HON JOSH FRYDENBERG MP MINISTER FOR THE ENVIRONMENT AND ENERGY

PARLIAMENT HOUSE

CANBERRA 2600

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2017-18 Budget for the

Environment and Energy Portfolio.

These statements have been developed, and are submitted to the Parliament, as a

statement on the outcomes for the Portfolio.

I present these statements to provide accountability to the Parliament and, through it,

the public.

Yours sincerely

Josh Frydenberg

iv

Abbreviations and conventions

The following notation may be used:

NEC/nec not elsewhere classified

- nil

.. not zero, but rounded to zero

na not applicable (unless otherwise specified)

nfp not for publication

$m $ million

$b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded

to one decimal place, whereas figures in tables are generally rounded to the nearest

thousand. Discrepancies in tables between totals and sums of components are due to

rounding.

Enquiries

Should you have any enquiries regarding this publication please contact, Chief

Financial Officer, Department of the Environment and Energy on (02) 6274 2203.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates

Statements and Portfolio Supplementary Additional Statements) can be located on the

Australian Government Budget website at: www.budget.gov.au.

http://www.budget.gov.au/

v

USER GUIDE TO THE

PORTFOLIO BUDGET STATEMENTS

vi

USER GUIDE

The purpose of the 2017-18 Portfolio Budget Statements (PB Statements) is to inform

Senators and Members of Parliament of the proposed allocation of resources to

government outcomes by entities within the portfolio. Entities receive resources from

the annual appropriations acts, special appropriations (including standing

appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual

appropriations in Appropriation Bills (No. 1 and No. 2) 2017-18 (or Appropriation

(Parliamentary Departments) Bill (No. 1) 2017-18 for the parliamentary departments).

In this sense, the PB Statements are Budget related papers and are declared by the

Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts

according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable

Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, only entities

within the general government sector are included as part of the Commonwealth

general government sector fiscal estimates and produce PB Statements where they

receive funding (either directly or via portfolio departments) through the annual

appropriation acts.

The Enhanced Commonwealth Performance Framework.

The following diagram outlines the key components of the enhanced Commonwealth

performance framework. The diagram identifies the content of each of the publications

and the relationship between them. Links to the publications for each entity within the

Portfolio can be found in the introduction to Section 2: Outcomes and planned

performance.

vii

ix

CONTENTS

PORTFOLIO OVERVIEW ............................................................................................... 1

Environment and Energy Portfolio overview ................................................................... 3

ENTITY RESOURCES AND PLANNED PERFORMANCE ........................................... 9

Department of the Environment and Energy ................................................................. 11

Australian Renewable Energy Agency .......................................................................... 91

Bureau of Meteorology ................................................................................................ 111

Clean Energy Finance Corporation ............................................................................. 135

Clean Energy Regulator .............................................................................................. 163

Climate Change Authority ........................................................................................... 189

Director of National Parks ........................................................................................... 209

Great Barrier Reef Marine Park Authority ................................................................... 231

Sydney Harbour Federation Trust ............................................................................... 261

1

PORTFOLIO OVERVIEW

3

ENVIRONMENT AND ENERGY PORTFOLIO OVERVIEW

Minister and Portfolio responsibilities

The Environment and Energy Portfolio is led by the Minister for the Environment and

Energy and comprises the Department of the Environment and Energy and eight other

entities.

Department of the Environment and Energy

The Department of the Environment and Energy advises on, and implements,

environment and energy policy to support the Government in achieving a healthy

environment, strong economy and thriving community now and into the future. The

Department of the Environment and Energy is responsible for the following outcomes:

Outcome 1: Conserve, protect and sustainably manage Australia’s biodiversity,

ecosystems, environment and heritage through research, information

management, supporting natural resource management, establishing and

managing Commonwealth protected areas, and reducing and regulating the use of

pollutants and hazardous substances.

Outcome 2: Reduce Australia’s greenhouse gas emissions, adapt to the impacts of

climate change, contribute to effective global action on climate change, and

support technological innovation in clean and renewable energy, through

developing and implementing a national response to climate change.

Outcome 3: Advance Australia’s strategic, scientific, environmental and economic

interests in the Antarctic region by protecting, administering and researching the

region.

Outcome 4: Support the reliable, sustainable and secure operations of energy

markets through improving Australia's energy efficiency, performance and

productivity for the community.

Australian Renewable Energy Agency

The Australian Renewable Energy Agency is a Corporate Commonwealth Entity1

established under the Australian Renewable Energy Agency Act 2011. The Australian

Renewable Energy Agency is responsible for the Outcome:

1 ‘Corporate Commonwealth Entity’ as defined under the Public Governance, Performance and Accountability Act 2013.

Portfolio overview

4

Support improvements in the competitiveness of renewable energy and related

technologies and the supply of renewable energy by administering financial

assistance, developing analysis and advice about, and sharing information and

knowledge with regard to, renewable energy and related technologies.

The Australian Renewable Energy Agency’s key objectives are to improve the

competitiveness of renewable energy technologies and increase the supply of

renewable energy. Its responsibilities include providing financial assistance for the

research, development, demonstration, deployment and commercialisation of

renewable energy and related technologies, and the storage and sharing of knowledge

and information about renewable energy technologies. The Agency jointly manages

the Clean Energy Innovation Fund with the Clean Energy Finance Corporation. The

Australian Renewable Energy Agency collects, analyses, interprets and disseminates

information and knowledge relating to renewable energy and related technologies and

provides advice to the Minister for the Environment and Energy about these

technologies and the renewable energy industry in Australia.

Bureau of Meteorology

The Bureau of Meteorology is a Non-corporate Commonwealth Entity2 and an

Executive Agency3 operating under the Meteorology Act 1955 and the Water Act 2007.

The Bureau of Meteorology is responsible for the Outcome:

Informed safety, security and economic decisions by governments, industry and

the community through the provision of information, forecasts, services and

research relating to weather, climate and water.

The Bureau of Meteorology is Australia’s national meteorological authority. Its

products and services include a dynamic range of observations, forecasts, warnings,

analysis and advice covering Australia’s atmosphere, water, oceans and space

environments. The Bureau of Meteorology’s work supports all Australians, including

the Australian Defence Force and key sectors such as emergency management,

aviation, transport, water management, agriculture and environmental management.

Clean Energy Finance Corporation

The Clean Energy Finance Corporation is a Corporate Commonwealth Entity

established under the Clean Energy Finance Corporation Act 2012. The Clean Energy

Finance Corporation is responsible for the Outcome:

2 ‘Non-corporate Commonwealth Entity’ as defined under the Public Governance, Performance and Accountability Act 2013. 3 ‘Executive Agency’ as defined under the Public Service Act 1999.

Portfolio overview

5

Facilitate increased flows of finance into Australia's clean energy sector, applying

commercial rigour to investing in renewable energy, low-emissions and energy

efficiency technologies, building industry capacity, and disseminating information

to industry stakeholders.

The Clean Energy Finance Corporation seeks to mobilise capital investment in

renewable energy, low-emissions technology and energy efficiency in Australia

through commercial loans, equity investments and in limited circumstances, loan

guarantees. This includes three funding programs as directed by the Government

through its Investment Mandate. One of these funding programs is the Clean Energy

Innovation Fund which is a joint arrangement between the Clean Energy Finance

Corporation and the Australian Renewable Energy Agency.

Clean Energy Regulator

The Clean Energy Regulator is a Non-corporate Commonwealth Entity established

under the Clean Energy Regulator Act 2011. The Clean Energy Regulator is responsible

for the Outcome:

Contribute to a reduction in Australia's net greenhouse gas emissions, including

through the administration of market based mechanisms that incentivise reduction

in emissions and the promotion of additional renewable electricity generation.

The Clean Energy Regulator provides data and information to Commonwealth

organisations for policy development and to meet international reporting obligations.

In addition, this information and data is provided to state and territory organisations

to reduce their need to duplicate emissions and energy reporting.

Climate Change Authority

The Climate Change Authority is a Non-corporate Commonwealth Entity and a

Statutory Agency4 operating under the Climate Change Authority Act 2011. The Climate

Change Authority is responsible for the Outcome:

Provide expert advice to the Australian Government on climate change mitigation

initiatives, including through conducting regular and specifically commissioned

reviews and through undertaking climate change research.

Director of National Parks

The Director of National Parks is a Corporate Commonwealth Entity operating under

the Environment Protection and Biodiversity Conservation Act 1999. The Director of

National Parks is responsible for the Outcome:

4 ‘Statutory Agency’ as defined under the Public Service Act 1999.

Portfolio overview

6

Management of Commonwealth reserves as outstanding natural places that

enhance Australia’s well-being through the protection and conservation of their

natural and cultural values, supporting the aspirations of Aboriginal and Torres

Strait Islander people in managing their traditional land and sea country, and

offering world class natural and cultural visitor experiences.

The Director of National Parks manages the Commonwealth’s terrestrial and marine

reserves and conservation zones and provides national leadership in protected area

management.

Great Barrier Reef Marine Park Authority

The Great Barrier Reef Marine Park Authority is a Non-corporate Commonwealth

Entity and is a Statutory Agency operating under the Great Barrier Reef Marine Park

Act 1975. The Great Barrier Reef Marine Park Authority is responsible for the Outcome:

The long-term protection, ecologically sustainable use, understanding and

enjoyment of the Great Barrier Reef for all Australians and the international

community, through the care and development of the Marine Park.

The Great Barrier Reef Marine Park Authority works to protect and conserve the

World Heritage values of the Great Barrier Reef.

Sydney Harbour Federation Trust

The Sydney Harbour Federation Trust is a Corporate Commonwealth Entity and

operates under the Sydney Harbour Federation Trust Act 2001. The Sydney Harbour

Federation Trust is responsible for the Outcome:

Enhanced appreciation and understanding of the natural and cultural values of

Sydney for all visitors, through the remediation, conservation and adaptive re-use

of, and access to, Trust lands on Sydney Harbour.

The Sydney Harbour Federation Trust is responsible for conserving and planning the

future uses of former military bases and other Commonwealth land around Sydney

Harbour.

For information on resourcing across the Portfolio, please refer to Part 1: Agency

Financial Resourcing in Budget Paper No. 4: Agency Resourcing.

Portfolio overview

7

Figure 1: Environment and Energy Portfolio structure and outcomes

Clean Energy Finance CorporationActing Chief Executive Officer - Mr Andrew Powell

Outcome: Facilitate increased flows of finance into Australia's clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry

capacity, and disseminating information to industry stakeholders.

Bureau of MeteorologyDirector - Dr Andrew Johnson

Outcome: Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

Department of the Environment and EnergyPortfolio Secretary - Dr Gordon de Brouwer

Outcome 1: Conserve, protect and sustainably manage Australia’s biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of

pollutants and hazardous substances.

Outcome 2: Reduce Australia’s greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and

renewable energy, through developing and implementing a national response to climate change.Outcome 3: Advance Australia’s strategic, scientific, environmental and economic interests in the Antarctic

region by protecting, administering and researching the region.Outcome 4: Support the reliable, sustainable and secure operations of energy markets through improving

Australia's energy efficiency, performance and productivity for the community.

Minister for the Environment and Energy The Honourable Josh Frydenberg MP

Clean Energy RegulatorActing Chief Executive Officer - Ms Jody Swirepik

Outcome: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of

additional renewable electricity generation.

Sydney Harbour Federation TrustExecutive Director - Ms Mary Darwell

Outcome: Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney

Harbour.

Great Barrier Reef Marine Park AuthorityChairperson - Dr Russell Reichelt

Outcome: The long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community, through the care and development of the

Marine Park.

Director of National ParkesDirector - Ms Sally Barnes

Outcome: Management of Commonwealth reserves as outstanding natural places that enhance Australia's well-being through the protection and conservation of their natural and cultural values, supporting the

aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

Climate Change Authority Acting Chief Executive Officer - Ms Shayleen Thompson

Outcome: Provide expert advice to the Australian Government on climate change mitigation initiatives, including through conducting regular and specifically commissioned reviews and through undertaking

climate change research.

Australian Renewable Energy AgencyChief Executive Officer - Mr Ivor Frischknecht

Outcome: Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewable energy by administering financial assistance, developing analysis and advice about, and sharing information and knowledge with regard to, renewable energy and related technologies.

9

ENTITY RESOURCES AND PLANNED PERFORMANCE

DEPARTMENT OF THE ENVIRONMENT AND ENERGY .......................................... 11

AUSTRALIAN RENEWABLE ENERGY AGENCY ...................................................... 91

BUREAU OF METEOROLOGY ................................................................................. 111

CLEAN ENERGY FINANCE CORPORATION .......................................................... 135

CLEAN ENERGY REGULATOR ................................................................................ 163

CLIMATE CHANGE AUTHORITY .............................................................................. 189

DIRECTOR OF NATIONAL PARKS .......................................................................... 209

GREAT BARRIER REEF MARINE PARK AUTHORITY ........................................... 231

SYDNEY HARBOUR FEDERATION TRUST ............................................................ 261

11

DEPARTMENT OF THE

ENVIRONMENT AND ENERGY

ENTITY RESOURCES AND PLANNED

PERFORMANCE

13

DEPARTMENT OF THE ENVIRONMENT AND ENERGY

SECTION 1: ENTITY OVERVIEW AND RESOURCES ............................................... 15

1.1 Strategic direction statement .......................................................................... 15

1.2 Entity resource statement ............................................................................... 23

1.3 Budget measures ............................................................................................ 26

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................... 29

2.1 Budgeted expenses and performance for Outcome 1 .................................... 30




SECTION 3: BUDGETED FINANCIAL STATEMENTS ............................................... 77

3.1 Budgeted financial statements........................................................................ 77

3.2 Budgeted financial statements tables ............................................................. 79

15

DEPARTMENT OF THE ENVIRONMENT AND ENERGY

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of the Environment and Energy advises on and implements,

environment and energy policy to support the Australian Government achieving a

healthy environment, strong economy and thriving community now and into the

future.

Outcome 1: Conserve, protect and sustainably manage Australia’s biodiversity,

ecosystems, environment and heritage through research, information management,

supporting natural resource management, establishing and managing

Commonwealth protected areas, and reducing and regulating the use of pollutants

and hazardous substances.

The Department is delivering policies, programs, information and research that enable

the conservation, protection and sustainable management of Australia’s natural

environment and heritage places.

The Australian Government has extended the National Landcare Program, investing a

further $1.1 billion from the Natural Heritage Trust over seven years from 2016-17. The

National Landcare Program is the primary funding mechanism for Australian

Government investment in environmental conservation and protection and sustainable

land management, and implementation of Australia’s obligations under international

conventions. The Department is working with other government agencies on the next

phase of the program which will deliver long-term improvements to Australia’s

biodiversity and natural resource condition and expand the Indigenous Protected

Areas program. The Department does this by supporting communities to address

national environmental, agricultural and indigenous priorities that provide economic

and social benefits locally and regionally. The next phase of the program includes the

additional $100.0 million directed to the National Landcare Program announced as

part of the 2016-17 Mid-Year Economic and Fiscal Outlook.

The Department is continuing to implement the Reef 2050 Long-Term Sustainability

Plan and progressing actions to protect and manage the Great Barrier Reef while

allowing ecologically sustainable development. In 2017-18, the Australian Government

will continue to contribute to priority actions across the whole Reef 2050 Plan -

ecosystem health, biodiversity, heritage, water quality, community benefits, economic

benefits and governance. Further, the Department works with the Clean Energy

Finance Corporation to deliver the $1.0 billion Reef Funding Program.

Department of the Environment and Energy Budget Statements

16

The Department is leading the implementation of the Government’s Threatened

Species Strategy, through pursuing science-based approaches, shaping policy and

programs and building partnerships to ensure threatened species are protected. The

Threatened Species Strategy sets out a road map to achieve the long-term goal of

reversing species decline and supporting species recovery, including through the

activities of the Threatened Species Commissioner. Australian Government investment

through the National Environmental Science Program and the National Landcare

Program, including the 20 Million Trees program, is assisting to deliver the ambitious

one, three and five year targets in the strategy.

The Government is investing an additional $5.0 million under the National Landcare

Program from 2016-17 to 2018-19 in the Threatened Species Recovery Fund to support

community-led threatened species projects aligned with the targets of Australia’s

Threatened Species Strategy. The Government has released Australia’s first Threatened

Species Prospectus to grow private sector interest and investment in threatened species

recovery.

The Department is working with other government agencies to deliver the

Government’s $30.0 million Support Your Local Parks and Environment election

commitment. This commitment includes the Improving Your Local Parks and

Environment Program, which supports communities to revitalise, maintain and

improve local parks, nature reserves, rivers, coastal areas and community facilities,

ensuring better and more accessible green spaces. The program will provide

$22.8 million over four years from 2016-17 to 2019-20. A second part of this

commitment is the $1.0 million Surf Life Saving Cleaner Outboard Engines Scheme

that provides grants to surf lifesaving clubs to upgrade outboard engines and will

reduce air pollution. The remaining funding of $6.2 million is supporting the Solar

Communities program which is described in Outcome 2.

The Department will work closely with the Director of National Parks to finalise new

management plans and implement management arrangements for Commonwealth

Marine Reserves. The Government is providing $56.1 million to the Department and

the Director of National Parks over four years from 2016-17 to 2019-20, including

funding for fisheries adjustment assistance and marine user engagement. This funding

will enable the Director of National Parks to transition to managing a marine protected

areas estate six times larger than the current estate.

In partnership with heritage managers, organisations and the community, the

Department is implementing the Australian Heritage Strategy. The strategy is a ten

year action based framework under which Australia’s natural, historic and Indigenous

heritage places are valued, protected for future generations and cared for by the

community.

The Department administers legislation to give effect to our international obligations

and implement specific national priorities in relation to environmental protection and

environmental health. The Department regulates to protect the environment by


17

supporting and promoting ecologically sustainable development through the effective

regulation of matters of national environmental significant Commonwealth areas and

activities under the Environment Protection and Biodiversity Conservation Act 1999. The

Department supports environmental health through pursuing national approaches to

effectively and efficiently manage hazardous wastes, substances and pollutants.

The Department is implementing the Government’s new national emission standards

for non-road spark ignition engines and equipment through the introduction of new

legislation. The new product emission standards cover a range of petrol powered

equipment, including garden engines like leaf blowers and outboard motors. Through

the implementation of these standards, Australians will be assured they are getting

high quality low-emitting engines and equipment, and air pollution harmful to both

human health and the environment will be reduced. This initiative is an important

element of the National Clean Air Agreement.

Through the Environment Protection and Biodiversity Conservation Act 1999, the

Department is supporting the assessment and listing of threatened species and

ecological communities and heritage places, and the protection of internationally

traded flora and fauna. The Department will continue to work closely with states and

territories to implement the Memorandum of Understanding on a Common

Assessment Method for Listing of Threatened Species. The reform will deliver a

nationally consistent approach to assessing threatened species, removing ambiguity,

and reducing uncertainty for business and community conservation groups.

Australia is committed to the protection of whales and dolphins, continues its work to

bring about a permanent end to all forms of commercial whaling and is a strong

supporter of the global moratorium on commercial whaling. The Department is

focusing on implementation of two Australian-led resolutions agreed at the 2016

International Whaling Commission meeting – on special permit whaling, and

governance reform. The Department will continue to subject the design and

implementation of Japan’s whaling research to robust scientific scrutiny, and actively

support and promote non-lethal research.

The Department is continuing to strengthen the information and research evidence

base to underpin environmental policy and decision-making, including through

delivery of the National Environmental Science Program and by making the

Department’s environmental data open access on data.gov.au.

Building on the release of the 2016 Australia State of the Environment digital platform,

the Department will work with other jurisdictions to develop a national approach to

environmental economic accounting in 2017, and with relevant sectors to further

improve the evidence base for future reporting on the condition of Australia’s

environment and its interaction with economic activity.

The Department will continue the work of the Supervising Scientist to ensure the

environment in the Alligator Rivers Region, including Kakadu National park, remains


18

protected from the potential impacts of uranium mining, with a focus on the successful

rehabilitation of the Ranger uranium mine.

The Department, through the Commonwealth Environmental Water Holder, manages

Commonwealth environmental water holdings acquired by the Government to protect

and restore environmental assets in the Murray-Darling Basin, including rivers, lakes,

floodplains, wetlands and aquifers. The Department will continue to manage the water

holdings and undertake research, monitoring and evaluation activities so as to give

effect to the objects of the Water Act 2007, the Basin Plan 2012 and relevant

international agreements.

The Department supports the management and protection of Australia's Ramsar

wetlands. The Department will conduct assessments on the ecological character of

wetlands to meet international obligations under the Ramsar Convention, and provide

advice on the significant impacts of developments on Ramsar wetlands under the

Environment Protection and Biodiversity Conservation Act 1999.

The Department will continue to support the Independent Expert Scientific Committee

on Coal Seam Gas and Large Coal Mining Development in providing advice to

Australian governments on the water-related impacts of coal seam gas and large coal

mining development proposals, to strengthen the science underpinning regulatory

decisions. In 2017-18 the Department will complete the delivery of targeted bioregional

(regional scale) assessments of the impacts of coal seam gas and large coal mining

development on water resources and water-dependent assets in selected regions across

Queensland, New South Wales, Victoria and South Australia.

In addition, in 2017-18 the Department will commence new combined geological and

bioregional resource assessments in three onshore areas that are underexplored but

prospective for unconventional gas, and where commercial production to supply the

East Coast Energy Market could commence in the medium term, through the

Government’s Energy for the Future package. This new work will leverage off the

nearly completed program of bioregional assessments. The scope for these new

bioregional assessments will be extended to shale and tight gas resources.

Outcome 2: Reduce Australia’s greenhouse gas emissions, adapt to the impacts of

climate change, contribute to effective global action on climate change, and support

technological innovation in clean and renewable energy, through developing and

implementing a national response to climate change.

The Department develops and implements policies and programs that reduce

Australia’s greenhouse gas emissions and enable the consideration of climate change

in the decisions taken by governments, business and individuals. The Portfolio

contributes to the ongoing effort to understand the impacts of climate change so that

responses are based on the best available science.


19

The 2017 review of climate change policies will ensure the Government’s climate

change policies remain effective in achieving Australia’s 2030 emissions reduction

target and Paris Agreement commitments, while maintaining affordable, reliable and

secure energy.

The Emissions Reduction Fund supports practical actions by businesses and

communities to achieve real reductions in emissions, lower their energy costs, increase

their productivity and deliver valuable co-benefits to the environment, economy and

society. The Fund’s Safeguard Mechanism ensures emissions reductions purchased by

the Government are not offset by a significant increase in emissions above business as

usual elsewhere in the economy. The National Carbon Offset Standard and carbon

neutral certification framework enable businesses to undertake voluntary climate

action. Growth in renewable and low emissions energy technologies is facilitated

through the Renewable Energy Target and support for technology innovation and

deployment through the Australian Renewable Energy Agency and the Clean Energy

Finance Corporation.

The Department provides information to support governments, business and the

community to prepare for and respond to the effects of the changing climate, including

through the National Climate Resilience and Adaptation Strategy. The Government is

providing new funding of $550,000 in 2017-18 to establish an Adaptation Partnership

to bring together Australia’s core national expertise on climate resilience and

adaptation research: the National Climate Change Adaptation Research Facility and

the CSIRO. The Department provides support for the National Climate Science

Advisory Committee. The Committee’s role is to advise the Australian Government on

a nationally aligned and integrated approach to climate science.

Internationally, the Department contributes to an effective global response to climate

change through the negotiation and implementation of obligations under the United

Nations Framework Convention on Climate Change, its Kyoto Protocol and the Paris

Agreement. This includes estimating and reporting Australia’s emissions and progress

towards targets. Following ratification of the Paris Agreement on 4 November 2016,

the Department, together with the Department of Foreign Affairs and Trade, will work

with other countries to establish the Paris Agreement ‘rulebook’ ahead of 2018. The

Portfolio, through the Department and the Clean Energy Regulator, is supporting

Australia’s contribution to developing the rules for the International Civil Aviation

Organisation’s carbon offsetting scheme. The Department provides support to other

countries for emission measurement and reporting, and support for international

partnerships that promote climate change action through protection of our natural

carbon sinks including rainforests and ‘blue carbon’ (mangroves, tidal marshes and

seagrasses).

The Department is working with other government agencies to deliver the $6.2 million

Solar Communities program which supports community groups and food rescue

charities to install rooftop solar photovoltaic, solar hot water and battery systems to

reduce their electricity costs and reduce emissions.


20

Outcome 3: Advance Australia’s strategic, scientific, environmental and economic

interests in the Antarctic region by protecting, administering and researching the

region.

The Department leads a whole of government approach to Antarctic and sub-Antarctic

policy development and operations, and contributes to advancing Australia’s Antarctic

interests within the Antarctic Treaty system. The Department conducts, leads and

facilitates research relevant to national policy objectives in high priority areas of

Antarctic and Southern Ocean science, particularly in protecting the Antarctic

environment and understanding its role in the global climate system. The Department

supports Antarctic and sub-Antarctic research by other institutions, including through

logistics support.

The Australian Antarctic Strategy and 20 Year Action Plan set out the Government’s

national interests in Antarctica and actions to support these interests over the next

20 years. The Australian Government is progressing implementation of key priorities

identified under Year Two of the 20 Year Action Plan. This includes the investigation

of options to deliver year-round aviation access between Hobart and Antarctica,

augmenting science research funding through the establishment of an Antarctic

Foundation and the development of over snow traverse capability enabling access to

the interior of the Australian Antarctic Territory. This capability will build Australia’s

scientific leadership in Antarctica, including by involvement in major international

scientific research undertaking to retrieve a million-year old ice core.

The Australian Government has confirmed its commitment to continuing year-round

access to Macquarie Island, with funding of $49.8 million over 11 years from 2016-17.

Macquarie Island is located in the Southern Ocean around 1,500 kilometres southeast

of Tasmania. The Island’s location makes it important for Australia’s contribution to a

range of international scientific monitoring and Southern Ocean research programs.

The Australian Government’s continued operation of a year-round research station

will ensure that high priority scientific research and monitoring programs conducted

on Macquarie Island continue. This includes continuing meteorological observations at

the island which contribute to weather forecasting and international climate science

programs.

The Department is procuring a new icebreaker which represents the single biggest

investment in the history of Australia’s Antarctic Program. The design of, and

preparation for, construction of a new world-class icebreaker to support the Australian

Antarctic Program has commenced and will continue during 2017-18. The new

icebreaker is expected to be commissioned in 2020-21 and will have its home-port in

Hobart.


21

Outcome 4: Support the reliable, sustainable and secure operations of energy

markets through improving Australia's energy efficiency, performance and

productivity for the community.

The Australian Government is committed to maintaining a competitive and reliable

energy system as we transition to a lower emissions future. In 2017-18, the

Environment and Energy Portfolio will work with the Industry, Innovation and

Science Portfolio to roll out the Government’s new Energy for the Future package. This

package will deliver important reforms across Australia’s energy markets to address

immediate challenges while laying the foundations for long term reforms to maintain

the security and affordability of the energy market. The package includes:

$19.6 million to accelerate reform through the Gas Market Reform Group to

improve transparency and access to gas markets.

$30.4 million over four years from 2017-18 for new combined geological and

bioregional resource assessments to assess the potential impacts on waterways and

aquifers in three onshore areas that are underexplored but prospective for

unconventional gas.

$13.4 million over five years to support an Energy Use Data Model to improve

forecasting and planning for energy markets – a critical measure to ensure the

future energy market is more responsive to the needs of all consumers.

$5.2 million to examine the costs and benefits of constructing pipelines to link

Northern and Western Australia gas reserves to the east coast, through Moomba in

South Australia.

$0.5 million in 2017-18 to examine the constraints impinging on increased gas

supply on the east coast of Australia including regulatory barriers and inconsistent

policies.

$2.0 million to allow the Australian Energy Market Operator to improve

publication of real time assessment of gas flows and market analysis, to make it

easier for the market operator, businesses and investors to make informed

decisions about gas market operations.

Through the Council of Australian Governments’ Energy Council, the Department is

helping implement various changes including increasing gas market transparency,

ensuring better regulation for competitive gas transport prices, improving affordability

of electricity by reforming the Limited Merits Review Regime, and improving energy

market governance. It will also assist the Government to respond to the Independent

Review into the reliability and stability of the National Electricity Market (the Finkel

Review).


22

The Department is implementing Australia’s plan to return to compliance with the

International Energy Agency’s oil stockholding obligations, including the introduction

of mandatory reporting of Australia’s stocks of petroleum and other fuels from

1 January 2018.

The Department will continue to implement the National Energy Productivity Plan

which aims to deliver a 40 per cent improvement in Australia’s energy productivity by

2030. The economy-wide work plan aims to improve energy productivity through

more productive consumer and business choices, and more productive energy

services.


23

1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total funding from all sources available to the entity for its

operations and to deliver programs and services on behalf of the Government.

The table summarises how resources will be applied by outcome (government strategic

policy objectives) and by administered (on behalf of the Government or the public) and

departmental (for the entity’s operations) classification.

For more detailed information on special accounts and special appropriations, please

refer to Budget Paper No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (that is, appropriations/cash

available) basis, whilst the ‘Budgeted expenses by Outcome’ tables in Section 2 and the

financial statements in Section 3 are presented on an accrual basis.


24

Table 1.1: Department of the Environment and Energy resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Departmental

Annual appropriations - ordinary annual services (a)

Prior year appropriations available 73,860 74,679

Departmental appropriation 365,998 396,929

Payments to corporate entities (b, c) 42,829 46,548

s74 retained revenue receipts (d) 38,327 34,348

Departmental capital budget (e) 24,937 24,592

Annual appropriations - other services - non-operating (f)

Equity injection 144,782 146,656

Total departmental annual appropriations 690,733 723,752

Special accounts (g)

Opening balance - 8,411

s75 transfer from Industry (h) 14,663 -

Non-appropriation receipts 3,986 -

Total special accounts 18,649 8,411

Total departmental resourcing 709,382 732,163

Administered


Outcome 1 426,045 401,078

Outcome 2 5,608 3,678

Outcome 4 6,312 6,452

Payments to corporate entities (c) 1,221 2,073


Payments to corporate entities (c) 619 376

Total administered annual appropriations 439,805 413,657

Administered special appropriations (g) 2,189,157 2,257,925

Special accounts (g)

Opening balance 5,471,743 6,435,319

Appropriation receipts (i) 2,257,032 2,289,196

Non-appropriation receipts 23,418 39,666

Total special account receipts 7,752,193 8,764,181

less administered appropriations drawn from annual/special

appropriations and credited to special accounts (2,257,032) (2,289,196)

less payments to corporate entities from annual/special

appropriations (300,033) (260,374)

less special account balances for corporate entities (6,979,000) (7,979,000)

Total administered resourcing 845,090 907,193

Total resourcing for the Department of the Environment and Energy 1,554,472 1,639,356

2016-17 2017-18

Average staffing level (number) 1,947 1,972


25

Table 1.1: Department of the Environment and Energy resource statement — Budget estimates for 2017-18 as at Budget May 2017 (continued)

Third party payments from and on behalf of other entities

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Payments made to other entities for the provision of services 7,742 6,770

Receipts received from other entities for the provision of services

(disclosed in s74 Retained revenue receipts section above) 483 -

Payments made to corporate entities within the Portfolio

Australian Renewable Energy Agency (Appropriation

Bill (No. 1) 2017-2018) 1,221 2,073

Australian Renewable Energy Agency (Australian Renewable

Energy Agency Act 2011) 298,193 257,925

Clean Energy Finance Corporation (Clean Energy Finance

Corporation Act 2012) 1,000,000 550,000

Director of National Parks (Appropriation Bill (No. 1) 2017-2018) 42,829 46,548

Director of National Parks (Appropriation Bill (No. 2) 2017-2018) 619 376

Prepared on a resourcing (i.e. appropriations available) basis. Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.

(a) Appropriation Bill (No. 1) 2017-18. (b) Following the Environment Protection and Biodiversity Conservation Act 1999 section 514S,

the Department of the Environment and Energy is directly appropriated the Director of National Parks' appropriations, which is then allocated to the Director of National Parks by the Secretary.

(c) 'Corporate entities' are Corporate Commonwealth Entities and Commonwealth Companies as defined under the Public Governance, Performance and Accountability (PGPA) Act 2013.

(d) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability (PGPA) Act 2013.

(e) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(f) Appropriation Bill (No. 2) 2017-18.

(g) Excludes 'Special Public Money' held in accounts such as Services for Other Entities and Trust Moneys accounts (SOETM). For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Section 2: Outcomes and Planned Performance for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

(h) The responsibility for Energy functions transferred from the Department of Industry, Innovation and Science as a result of the Administrative Arrangements Orders dated 19 July 2016 and 1 September 2016.

(i) Amounts credited to the special accounts from the Department of the Environment and Energy's annual and special appropriations.


26

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Department of the Environment and Energy

are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Department of the Environment and Energy 2017-18 Budget measures

Part 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program 2016-17

$'000 2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000

Revenue measures

National Emissions Standards for Non-Road Spark Ignition Engines and Equipment – cost recovery 1.6

Administered revenues

- 429 2,658 2,658 2,658 Total

- 429 2,658 2,658 2,658

Total revenue measures

Administered

- 429 2,658 2,658 2,658

Total

- 429 2,658 2,658 2,658

Expense measures

National Landcare Programme – continuation (a) 1.1

Administered expenses

- - - - -

Total

- - - - - National Emissions Standards for Non-Road Spark Ignition Engines and Equipment – cost recovery 1.6

Departmental expenses

- 1,734 1,818 1,818 1,818

Total

- 1,734 1,818 1,818 1,818

Adaptation Partnership (b) 1.1, 2.2 Administered expenses

(550) - - - -


- 550 - - -

Total

(550) 550 - - - Energy for the Future – gas supply and affordability (c) 1.2, 4.1


- 25,914 9,595 11,673 10,386 Total

- 25,914 9,595 11,673 10,386

Energy for the Future – energy use data model for better forecasting (d) 4.1


- - 2,500 2,500 2,500 Departmental expenses

- 687 666 666 677

Total

- 687 3,166 3,166 3,177

Energy for the Future –solar thermal in Port Augusta (e) 4.1


- - - - - Departmental expenses

- - - - -

Total

- - - - -


27

Part 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) (continued)

Program

2016-17 $'000

2017-18 $'000

2018-19 $'000

2019-20 $'000

2020-21 $'000

Overseas Allowances for Australian Government Employees - efficiencies 4.1


- - 11 11 11 Total

- - 11 11 11

Public Service Modernisation Fund - transformation and innovation stream (f) All


- - - - -

Total

- - - - -

Total expense measures

Administered

(550) - 2,500 2,500 2,500 Departmental

- 28,885 12,090 14,168 12,892

Total

(550) 28,885 14,590 16,668 15,392

Capital measures

National Emissions Standards for Non-Road Spark Ignition Engines and Equipment – cost recovery 1.6

Departmental capital

- 1,108 - - -

Total

- 1,108 - - -

Total capital measures

Administered

- - - - -

Departmental

- 1,108 - - -

Total - 1,108 - - -

Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed brackets represent a decrease in funds. (a) This measure allocates funding of $1.1 billion in the Natural Heritage Trust from 2016-17 to 2022-23

to support the protection, conservation and rehabilitation of Australia’s natural environment and encourage sustainable land management practices.

(b) Funding for this measure will be offset from elsewhere in the Portfolio in 2016-17.

(c) Funding will commence in 2017-18, although the Department will incur expenses in 2016-17 for this measure.

(d) This measure includes funding of $3.2 million in 2021-22.

(e) Funding of $110.0 million has been included in the Contingency Reserve for this measure, to be accessed if required to secure the delivery of a new solar thermal power generation facility in Port Augusta, South Australia.

(f) This measure includes funding of $0.7 million in 2019-20.


28

Figure 2: Changes to the outcome and program structures since the last portfolio statement

New Outcome 4

Support the reliable, sustainable and secure operations of energy markets through improving Australia's energy efficiency, performance and productivity for the community.

Description of change:

Previously reported in 2016-17 Portfolio Additional Estimates Statements as Outcome 5.

Program changes

Program No.

Program title Description of change

1.1 Sustainable Management of Natural Resources and the Environment

Includes previous Program 1.3 Land Sector Initiatives.

1.2 Environmental Information and Research

Includes coal seam gas and large coal mining development elements of previous Program 4.1.

1.3 Commonwealth Environmental Water

Includes Ramsar Convention elements from previous Program 4.1 and all elements previous Program 4.2.

4.1 Water Science and Wetlands Program moved to Outcome 1 now reported under Programs 1.2 and 1.3.

4.2 Commonwealth Environmental Water

Program moved to Outcome 1 now reported under Program 1.3.

5.1 Energy Program 5.1 moved to Outcome 4 now reported under Program 4.1.


29

Section 2: Outcomes and planned performance

Government outcomes are the intended results, impacts or consequences of actions by

the Government on the Australian community. Commonwealth programs are the

primary vehicle by which government entities achieve the intended results of their

outcome statements. Entities are required to identify the programs which contribute to

government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs. The following

provides detailed information on expenses for each outcome and program, further

broken down by funding source.

Note:

Performance reporting requirements in the Portfolio Budget Statements are part of the

enhanced Commonwealth performance framework established by the Public

Governance, Performance and Accountability Act 2013. It is anticipated that the

performance criteria described in Portfolio Budget Statements will be read with

broader information provided in an entity’s corporate plans and annual performance

statements – included in Annual Reports - to provide an entity’s complete performance

story.

The most recent corporate plan for the Department of the Environment and Energy can

be found at:

http://environment.gov.au/about-us/publications/corporate-plan-2016-17.

The most recent annual performance statement can be found at:

http://environment.gov.au/annual-report-2015-16/performance-statements.

http://environment.gov.au/about-us/publications/corporate-plan-2016-17

http://environment.gov.au/annual-report-2015-16/performance-statements


30

2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

Outcome 1: Conserve, protect and sustainably manage Australia’s biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.

Linked programs

Australian Fisheries Management Authority

Programs

Program 1.1 – Australian Fisheries Management Authority

Contribution to Outcome 1 made by linked programs

The Department of the Environment and Energy and Australian Fisheries Management Authority engage on sustainable management of Commonwealth fisheries.

Australian Institute of Marine Science

Programs

Program 1.1 – Marine Research


The Department of the Environment and Energy and the Australian Institute of Marine Science work together on implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.

Australian Pesticides and Veterinary Medicines Authority

Programs

Program 1.1 – Australian Pesticides and Veterinary Medicines Authority


The Department of the Environment and Energy and the Australian Pesticides and Veterinary Medicines Authority work together to ensure regulation of pesticide and veterinary medicines protects Australia’s environment and our environmental health.


31

Australian Taxation Office

Programs

Program 1.12 – Product Stewardship for Oil program


The Department of the Environment and Energy works with the Australian Taxation Office, which administers financial aspects of the Product Stewardship for Oil program, pays the benefits on recycled motor oil and collects the levy on new oil entering the market from domestic sources.


Programs

Program 1.1 – Bureau of Meteorology


The Bureau of Meteorology is a partner in the Earth Systems and Climate Change Hub in the National Environmental Science Program.

The Bureau of Meteorology is a collaborator in the delivery of the Bioregional Assessment program, managing and leading the technical component. The Bureau of Meteorology provides experience in building and maintaining environmental information systems, and sourcing and storing environmental information such as data, models and reports.

In addition, the Bureau of Meteorology’s water information services inform Commonwealth environmental water planning and decision making in relation to water resource availability and environmental water requirements.


Programs

Program 1.1 – Clean Energy Finance Corporation


The Department of the Environment and Energy has responsibility for policies that reduce Australia’s greenhouse gas emissions. The Clean Energy Finance Corporation contributes to these programs by facilitating increased flows of finance into the clean energy sector, including through the funding it makes available to the Clean Energy Innovation Fund and Reef Funding Program.


32

Commonwealth Scientific and Industrial Research Organisation

Programs

Program 1.1 – Research – Science, Services and Innovation Fund


The Commonwealth Scientific and Industrial Research Organisation contributes to Outcome 1 through the delivery of research to support the implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.

The Commonwealth Scientific and Industrial Research Organisation is a lead organisation in the Earth Systems and Climate Change Hub in the National Environmental Science Program.

The Commonwealth Scientific and Industrial Research Organisation is also a collaborator in the delivery of the bioregional assessments, contributing expertise in ecology, hydrology, hydrogeology, informatics and risk analysis.

Department of Agriculture and Water Resources

Programs

Program 1.1 – Agricultural Adaptation

Program 1.2 – Sustainable Management - Natural Resources

Program 1.4 – Fishing Industry

Program 2.1 – Biosecurity and Export Services

Program 2.2 – Plant and Animal Health

Program 3.1 – Water Reform


The Departments of the Environment and Energy and Agriculture and Water Resources work together under a memorandum of understanding to deliver the National Landcare program and work collaboratively to implement the Murray-Darling Basin Plan and the Commonwealth’s water reform policy agenda.

The Departments of the Environment and Energy and Agriculture and Water Resources engage on biosecurity, wildlife trade and fisheries policy.

The Departments of the Environment and Energy, Agriculture and Water Resources, and Industry, Innovation and Science work collaboratively in the planning phase of the National Carp Control Plan.


33

Department of Foreign Affairs and Trade

Programs

Program 1.1 – Foreign Affairs and Trade Operations

Program 1.2 – Official Development Assistance


The Department of Foreign Affairs and Trade provides support to the Department of the Environment and Energy on matters relating to the implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.

The Department of the Environment and Energy receives funding from the Department of Foreign Affairs and Trade for a number of engagement activities in the Pacific and South-East Asia.

Department of Health

Programs

Program 5.1 – Protect the Health and Safety of the Community through Regulation


The Department of the Environment and Energy and the Department of Health work together to manage policy and regulatory issues that have combined human and environmental health implications.

Department of Human Services

Programs

Program 1.1 – Services to the Community – Social Security and Welfare


The Department of Human Services contributes to Outcome 1 through the provision of advice to some Green Army participants on the interaction between the Green Army allowance and income support payments.

Department of Immigration and Border Protection

Programs

Program 1.1 – Border Enforcement

Program 1.2 – Border Management


The Departments of the Environment and Energy and Immigration and Border Protection work together to prevent illegal wildlife trade and control transboundary movements of hazardous wastes and their disposal.


34

Department of the Prime Minister and Cabinet

Programs

Program 1.1 – Prime Minister and Cabinet

Program 1.1 – Indigenous Advancement - Jobs, Land and Economy Program


The Departments of the Environment and Energy, the Prime Minister and Cabinet, and Agriculture and Water Resources work together to provide opportunities for indigenous communities and land managers to engage with the National Landcare Program. The Departments of the Environment and Energy and the Prime Minister and Cabinet work cooperatively on the Indigenous Protected Areas program and elements of the Indigenous Rangers program through the National Landcare Program.

The Department of the Environment and Energy is supporting the Government's Cities agenda, through the delivery of the National Landcare Program, including the 20 Million Trees program, the use of strategic assessments under the Environment Protection and Biodiversity Conservation Act 1999 and national approaches to managing wastes and hazardous substances and air quality in cities.

Department of the Treasury

Programs

Program 1.9 – National Partnership Payments to the States


The Department of the Treasury contributes to Outcome 1 by making payments on behalf of the Department of the Environment and Energy. A number of payments are made to States and territories for heritage management and species conservation.


Programs

Program 1.1 – Parks and Reserves


The Department of the Environment and Energy and the Director of National Parks work together through engagement on policy direction, science, heritage management and species conservation within Commonwealth managed marine and terrestrial reserves.


35


Programs

Program 1.1 – Improving the outlook for the Great Barrier Reef


The Department of the Environment and Energy and the Great Barrier Reef Marine Park Authority work together on heritage management, environment health, species conservation and fisheries management as well as joint implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.

Murray-Darling Basin Authority

Programs

Program 1.1 – Equitable and Sustainable Use of the Murray-Darling Basin


The Department of the Environment and Energy and the Murray Darling Basin Authority work together on implementation of the Basin Plan, operation of the River Murray System, shared natural resource management programs, research, information, advice and Basin Plan reporting obligations, all of which contribute to the management of Commonwealth environmental water.

National Offshore Petroleum Safety and Environmental Management Authority

Programs

Program 1 – Regulatory oversight of Safety Cases, Well Operations Management Plans and Environment Plans coupled with effective monitoring, investigation and enforcement.


The National Offshore Petroleum Safety and Environmental Management Authority contributes to the work of the Department of the Environment and Energy through its policies and program relating to the effective management and administration of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and environment associated regulations.

Sydney Harbour Federation Trust

Programs Program 1.1 – Sydney Harbour Federation Trust


The Department of the Environment and Energy and the Sydney Harbour

Federation Trust work together through engagement on policy direction and site

management to preserve the natural and cultural heritage of Sydney Harbour

Federation Trust land and maximise public access.


36

Budgeted expenses for Outcome 1

This table shows how much the entity intends to spend (on an accrual basis) on

achieving the outcome, broken down by program, as well as by Administered and

Departmental funding sources.

Table 2.1.1: Budgeted expenses for Outcome 1

Outcome 1: Conserve, protect and sustainably manage Australia's biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000

2018-19 Forward estimate

$'000


$'000


$'000

Program 1.1: Sustainable Management of Natural Resources and the Environment


Ordinary annual services

(Appropriation Bill No. 1)

National Landcare Program:

Natural Heritage Trust 229,163 256,847 223,244 227,026 196,708

Less special account (229,163) (256,847) (223,244) (227,026) (196,708)

Environmental Stewardship

Program 9,945 9,918 9,980 9,713 9,179

Green Army 74,014 21,283 - - -

Reef 2050 Plan 34,124 39,419 39,461 40,000 15,000

Less special account (34,038) (39,333) (39,375) (40,000) (15,000)

Great Barrier Reef Foundation -

contribution 3,125 - - - -

Commonwealth Marine Reserves - 10,575 10,262 7,496 -

Improving your Local Parks and

Environment 1,140 6,265 5,436 2,073 -

Biodiversity Fund 42,423 1,997 - - -

Special accounts

Natural Heritage Trust of Australia

Account 227,163 258,584 224,744 227,526 196,708

Reef Trust Special Account 41,534 41,621 42,983 43,242 16,947

Administered total 399,430 350,329 293,491 290,050 222,834


Departmental appropriation (a, b) 29,079 25,477 18,631 18,780 18,550

Payments to corporate entities (c) 42,829 46,548 47,397 45,802 44,129

Expenses not requiring appropriation

in the Budget year (d) 7,737 8,610 11,345 11,002 10,171

Departmental total 79,645 80,635 77,373 75,584 72,850

Total expenses for Program 1.1 479,075 430,964 370,864 365,634 295,684


37

Table 2.1.1: Budgeted expenses for Outcome 1 (continued)


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.2: Environmental Information and Research




National Environmental Science

Program 25,520 25,520 25,520 25,520 25,520 Australian Biological Resources

Study 2,030 2,030 2,030 2,030 2,030

Independent Expert Scientific

Committee on Coal Seam Gas

and Large Coal Mining 1,035 1,035 1,035 1,035 1,035





in the Budget year (d) 37 39 39 39 39



Program 1.3: Commonwealth Environmental Water




Commonwealth Environmental

Water Office 141 16,568 33,292 41,216 43,142

Less special account (141) (16,568) (33,292) (41,216) (43,142)

MDB Environmental Knowledge

and Research 1,900 1,900 1,900 1,900 2,500

Water Resources Assessment and

Research Grant 175 - - - -

Special accounts

Environmental Water Holdings

Special Account 32,607 44,561 38,045 43,722 43,142









38



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.4: Conservation of Australia's Heritage and Environment




Protecting National Historic Sites (e) 4,420 4,420 4,420 4,420 4,420

National Trusts Partnership Program 927 927 927 927 927 Community Heritage and Icons

Grants Program 467 - - - -

Giant Pandas 1,402 1,308 1,308 - -





in the Budget year (d) 4,997 2,248 494 68 68



Program 1.5: Environmental Regulation




Environment Protection and

Biodiversity Conservation Act -

Water Resources Amendment 259 259 259 259 259

Administered total 259 259 259 259 259








39



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.6: Management of Hazardous Wastes, Substances and Pollutants




National Environment Protection

Council 518 502 429 429 429

Less special account (518) (502) (429) (429) (429)

Biofuels - Monitoring, Compliance and

Enforcement of Fuel Quality 100 100 100 100 100

Surf Life Saving Cleaner Outboard

Engines Scheme 45 205 375 375 -

Special accounts

Ozone Protection & Synthetic Greenhouse

Gas Account 13,586 13,763 13,969 14,193 14,405

National Environment Protection

Council Special Account 1,984 1,865 680 680 680








Outcome 1 Totals by appropriation type



(Appropriation Bill No. 1) 169,013 87,828 63,638 55,848 45,970

Special accounts 316,874 360,394 320,421 329,363 271,882




Payments to corporate entities (c) 42,829 46,548 47,397 45,802 44,129


in the Budget year (d) 14,295 12,232 13,380 12,480 11,597


Total expenses for Outcome 1 736,195 707,597 633,504 635,964 565,872


40


Movement of administered funds between years (f)

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Outcome 1:

Environmental Water Holdings

Special Account (1,029) 10,093 353 291 -

Natural Heritage Trust of Australia

Account (2,000) - 1,500 500 -

Total movement of administered funds (3,029) 10,093 1,853 791 -

2016-17 2017-18


(a) Outcome 1 also has a departmental capital budget of $11.128 million in 2017-18.

(b) Includes retained revenue receipts under section 74 of the Public Governance, Performance and Accountability (PGPA) Act 2013.

(c) Further information on payments to corporate entities can be found in the "Third Party Payments" section of Table 1.1: Department of the Environment and Energy Resource Statement.

(d) Expenses not requiring appropriation comprise depreciation expenses, amortisation expenses, audit fees and an approved operating loss.

(e) The Protecting National Historic Sites program was previously reported under the title Heritage Grants. This change aligns the title with the current program name.

(f) Figures displayed in brackets represent a decrease in funding.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


41

Table 2.1.2: Performance criteria for Outcome 1

Table 2.1.2 below details the performance criteria for each program associated with

Outcome 1. It summarises how each program is delivered and where 2017-18 Budget

measures have created new programs or materially changed existing programs.

Outcome 1 – Conserve, protect and sustainably manage Australia’s biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.

Program 1.1 – Sustainable Management of Natural Resources and the Environment

The objective of this program is to improve the extent, condition and connectivity of Australia’s unique biodiversity and natural resources, including the Great Barrier Reef, through protection of habitats and mitigation of threats to threatened species and ecological communities.

Delivery Program 1.1 will be delivered by:

Delivering biodiversity conservation and natural resource management programs, including the Reef Trust, 20 Million Trees, the National Landcare Program and Improving Your Local Parks and Environment Program

Implementing initiatives to improve the health of the Great Barrier Reef, including the Reef 2050 Plan and Reef Water Quality Protection Plan

Implementing the Threatened Species Strategy and the Threatened Species Recovery Fund

Representing Australia’s interests at international forums on biodiversity matters and meeting obligations under international agreements.

Performance information

Year Performance criteria Targets

2016–17 Australia meets its obligations under international environmental agreements.

On track

Continued implementation of the Reef 2050 Plan focused on the 97 actions identified as immediate priorities in the Reef 2050 Plan implementation strategy, including development of the Indigenous implementation plan, the guidelines for decision makers, the investment framework and key reporting requirements. Continued stakeholder engagement through the Reef 2050 governance structure, including the reef advisory committee and independent scientific expert panel.

On track

Reef Trust continues investment through phase IV and V investment strategies to deliver projects that address key threats, with a focus on improving water quality and coastal habitats, and protecting biodiversity. Reef Trust continues to pursue options for investment diversification, including through private and philanthropic investment, innovative financial mechanisms and offset delivery.

On track


42




Australia’s biodiversity, including threatened species, ecological communities and migratory species, and significant heritage places, are identified, conserved and protected.

On track

Contracted projects to plant 20 million trees in place by June 2020.

On track

Threatened Species Strategy targets are met.

On track—Of the strategy’s 26 year one targets, 21 were met, four have made good progress and one will not be achieved. The target that will not be achieved relates to all culled feral cats being reported in the Feral Cat Scan phone app. Due to limited ability to drive uptake, not all cats culled are reported in the app.

56 Regional natural resource management organisations have delivered against National Landcare Program objectives.

On track

Improving Your Local Parks and Environment Program projects deliver against program objectives.

Data/information not available—This was a new measure announced in the Mid-year Economic and Fiscal Outlook 2016–17 and the program is in its early stages. No delivery data are available.

On average 500 Green Army Projects commenced and up to 5,000 participants engaged annually.

On track

90 per cent of Biodiversity Fund projects substantially complete, delivering 50,000 ha of revegetation to improve vegetation condition and/or increase extent.

On track


In collaboration with the Queensland Government, by June 2018, improve the quality of water entering the Great Barrier Reef from broad scale land use by reducing pollutant loads in priority areas, relative to 2008–09 baseline levels.5

5 Moved from 2016–17 to reflect June 2018 timeframe


43



Year Performance criteria (a) Targets (a)

Continued implementation of the Reef 2050 Plan. Continued stakeholder engagement through the Reef 2050 Plan governance structures, including the Reef 2050 Advisory Committee and Independent Expert Panel.

Reef Trust continues investment through phased investment strategies to deliver projects that address key threats to the Great Barrier Reef, with a focus on improving water quality and coastal habitats, and protecting biodiversity.

Australia’s biodiversity, including priority threatened species, ecological communities, cetaceans and migratory species, and significant heritage places, are identified, conserved and protected.

Contracted projects to plant 20 million trees in place by June 2020.

Threatened Species Strategy targets are met.

56 Regional natural resource management organisations have delivered against National Landcare Program objectives.

Improving Your Local Parks and Environment Program projects deliver against program objectives.

Green Army program objectives delivered.

95 per cent of Biodiversity Fund projects substantially complete, delivering 53,800 ha of revegetation to improve vegetation condition and/or increase extent.

2018–19 and beyond

As for 2017–18 National Landcare Program delivers against program objectives and contracts are in place.

As for 2017–18 with the exception of concluding programs

Purposes Conserve, protect and sustainably manage Australia’s biodiversity and heritage.

Material changes to Program 1.1 resulting from the following measures:

Measure title – National Landcare Programme – continuation

(a) New or modified performance criteria and/or targets that reflect new or materially changed programs are shown in italics.


44

Program 1.2 - Environmental Information and Research

The objective of this program is to improve understanding of Australia’s environment and inform environmental decision-making through collaborative research and enhanced discovery, access and use of environmental information; improve the knowledge of, and inform decision-making on, the water-related impacts of coal seam gas and coal mining development.


Providing information to assist decision-makers to understand, manage and conserve Australia’s environment, including under the Environment Protection and Biodiversity Conservation Act 1999

Supporting the discovery and classification of Australia’s plants, animals and other organisms by providing taxonomic information to the public, funding taxonomic research and building Australia’s taxonomic capacity

Collating, managing and making fundamental biodiversity information openly accessible to the public, science, industry and government, to assist decision-makers to understand, manage and conserve Australia’s environment

Providing data and information to decision-makers and the community that addresses critical gaps in the scientific understanding of the water-related impacts of coal seam gas and large coal mining development

Providing technical and secretariat support to the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (IESC) to ensure delivery of timely and robust advice on the water-related impacts of coal seam gas and large coal mining development to government regulators.



2016–17

Data and information generated by the Department are used by stakeholders and/or supports evidence based decision-making.

On Track

All environmental datasets owned by the Department are published under Creative Commons.

On track

All advice provided to regulators by the IESC is delivered within statutory timeframes and made publicly available.

On track

Completion and release of bioregional assessments for all 13 bioregions by 30 June 2017 to assess the potential water-related impacts of coal and coal seam gas.

Not on track—The six remaining reports will be delivered in early 2017–18. Delays are due to the complexity of the research and ensuring scientific rigor.

200 taxa revised or newly described under the Australian Biological Resources Study.

Achieved

At least 64 researchers, including early career researchers, supported under the Australian Biological Resources Study.

Achieved


45

Program 1.2 - Environmental Information and Research

The objective of this program is to improve understanding of Australia’s environment and inform environmental decision-making through collaborative research and enhanced discovery, access and use of environmental information; improve the knowledge of, and inform decision-making on, the water-related impacts of coal seam gas and coal mining development.


Year Performance criteria (a) Targets (a)

2017–18 Data and information generated by the Department are used by stakeholders and/or supports evidence based decision-making.

All environmental datasets owned by the Department are published under Creative Commons and in accordance with the Australian Government Public Data Policy.

A national approach to environment economic accounts is developed with jurisdictions by December 2017.

All advice provided to regulators by the IESC is delivered within statutory timeframes and made publicly available.

The bioregional assessments of the potential water-related impacts of coal and coal seam gas for all 13 bioregions are completed by 30 September 2017.

Priority regions are identified and work is underway for new combined geological and bioregional assessments of the impacts of unconventional gas extraction, including shale and tight gas.

650 taxa revised or newly described under the Australian Biological Resources Study.

At least 100 researchers, including early career researchers, supported under the Australian Biological Resources Study.

2018–19 and beyond As for 2017–18 As for 2017–18 except for bioregional assessment and environment economic accounts targets above.

Purposes Relates to ‘Environment and Heritage’ and supports all other purposes.


Measure title – Energy for the Future – gas supply and affordability



46

Program 1.3 – Commonwealth Environmental Water

The objective of the program is to: protect and restore water-dependent ecosystems in the Murray–Darling Basin through the management and use of Commonwealth environmental water and manage Australia’s obligations under the Ramsar Convention; and improve the knowledge of, and inform decision-making on, the impacts to and management of water-dependent ecosystems consistent with international and national obligations.


Planning for the use, carryover and trade of Commonwealth environmental water (integrated portfolio management plans)

Managing, delivering, monitoring and reporting on Commonwealth environmental water

Engaging Murray–Darling Basin communities, Indigenous groups, irrigation industries and others to incorporate local experience and knowledge in the management of Commonwealth environmental water

Contributing to the development of the National Carp Control Plan

Undertaking research, conducting assessments, compiling information and providing advice to improve the management of water-dependent ecosystems, including Ramsar wetlands

Representing Australia and the Oceania region at Ramsar Conference of Contracting Parties meetings, and undertaking the role of Vice Chair of the Ramsar Standing Committee.




On track

All required assessments under Article 3.2 of the Ramsar Convention (change in the ecological character description of Ramsar wetlands) are completed consistent with obligations under the Convention.

On track

Environmental watering improves the condition of water-dependent ecosystems in the Murray–Darling Basin.

On track

All Commonwealth environmental water is actively and adaptively managed, including through use, trade, and carry over

On track

Intervention monitoring demonstrates that Commonwealth environmental water contributes to the achievement of Basin Plan targets and the Basin-wide environmental watering strategy.

On track

Support the multi agency project team led by the Department of Agriculture and Water Resources to develop the National Carp Control Plan.

On track

2017–18 Environmental watering improves the condition of water-dependent ecosystems in the Murray–Darling Basin, contributing to achievement of targets in the Basin-wide environment watering strategy.

All Commonwealth environmental water is actively and adaptively managed, including through use, trade, and carry over.


47

Program 1.3 – Commonwealth Environmental Water

The objective of the program is to: protect and restore water-dependent ecosystems in the Murray–Darling Basin through the management and use of Commonwealth environmental water and manage Australia’s obligations under the Ramsar Convention; and improve the knowledge of, and inform decision-making on, the impacts to and management of water-dependent ecosystems consistent with international and national obligations.


Australia meets its obligations under international environmental agreements.

All required assessments under Article 3.2 of the Ramsar Convention (change in the ecological character of Ramsar wetlands) are completed consistent with obligations under the Convention.

Support the Department of Agriculture and Water Resources to develop a National Carp Control Plan by 2018.


As for 2017–18 As for 2017–18


Program 1.4 – Conservation of Australia’s Heritage and Environment

The objective of this program is to: (a) identify and protect world and nationally significant natural, Indigenous and historic heritage places; (b) identify, protect and conserve Australia’s threatened species, ecological communities, cetaceans and migratory species; and (c) protect internationally traded flora and fauna consistent with national and international obligations.


Administering regulation and providing advice on the delivery of funding programs to support the identification and protection of threatened species and ecological communities and significant natural, Indigenous and historic heritage places

Regulating wildlife trade (imports and exports) to protect Australia’s biodiversity and CITES species and allowing sustainable use of wildlife resources

Providing advice and representing Australia’s interests on heritage, wildlife and biodiversity matters and meeting obligations under international agreements.



2016–17 Australia’s biodiversity, including threatened species, ecological communities, cetaceans and migratory species, and significant heritage places, are identified, conserved and protected.

On track

All activities required by legislation are conducted within statutory timeframes.

Not on track—The majority of activities have been met on time. Those that have been delayed are due to increased complexity of projects and stakeholder negotiations and resource constraints, including staff turnover.


48


The objective of this program is to: (a) identify and protect world and nationally significant natural, Indigenous and historic heritage places; (b) identify, protect and conserve Australia’s threatened species, ecological communities, cetaceans and migratory species; and (c) protect internationally traded flora and fauna consistent with national and international obligations.


Overdue referrals and assessments are, on average, only eight days late.

Data and information generated or commissioned by the Department are used by stakeholders and/or support evidence based decision-making.

On track

All guidance documents, including conservation advices, recovery plans, wildlife conservation plans and threat abatement plans are developed and published within statutory timeframes.

Not on track—Limited capacity has delayed preparation of recovery plans and conservation advices for some species and ecological communities. The Department is directing effort to developing documents for identified high priority species and ecological communities.


On track

All Australian property included on the list of World Heritage is well managed.

On track

2017–18 Australia’s biodiversity, including priority threatened species, ecological communities, cetaceans and migratory species, and significant heritage places, are identified, conserved and protected.

Activities required by legislation are conducted within statutory timeframes.



All Australian property included on the list of World Heritage is well managed.


As for 2017–18 As for 2017–18



49

Program 1.5 – Environmental Regulation

The objective of this program is to support sustainable development outcomes by delivering efficient and effective regulation of matters of national environmental significance.


Undertaking individual and strategic environmental assessments and approvals an implementing a risk based approach to compliance and enforcement activities under the Environment Protection and Biodiversity Conservation Act 1999 and Environment Protection (Sea Dumping) Act 1981

Significant progress on implementing government reforms and effective and efficient delivery of government policies, programs and priorities in relation to environmental protection

Overseeing, and participating in, arrangements for the regulation of uranium mining in the Alligator Rivers Region to ensure regulation is adequate, effective and consistent with statutory requirements under the Environment Protection (Alligator Rivers Region) Act 1978

Undertake annual scientific research and monitoring programs into the environmental effects of uranium mining to address key knowledge needs and contribute to the development of scientifically rigorous environmental performance criteria for the operational, rehabilitation and closure phases of mining under the Environment Protection (Alligator Rivers Region) Act 1978.



2016–17 Australia’s biodiversity, including threatened species, ecological communities, and migratory species, and significant heritage places, are identified, conserved and protected.

On track


Not on track—The majority of activities have been met on time. Those that have been delayed are due to increased complexity of projects and stakeholder negotiations and resource constraints, including staff turnover. Overdue referrals and assessments are, on average, only eight days late.

The number of hectares of habitat protected by offsets6 is equal to or greater than the area impacted7 for approved projects.

Data/information not available—Time lags, inability to factor in habitat quality and inadequate IT support systems prevent full reporting against this target at this time.

6 Location data available is only for those offsets that have been secured, noting there is often a lag once an

offset has been approved as a condition to the actual securing of the offset. This dataset will mature over time and is indicative only. 7 Project footprint.


50




Increase in the use of strategic approaches to environmental assessments and approvals.

On track

Increase in the proportion of approved assessments that apply streamlining policy initiatives, including outcomes based conditions, conditions setting policy, and bilateral assessment agreements.

On track


On track

Improved compliance with national environmental legislation.

Achieved

The Alligator Rivers Region environment remains protected from uranium mining effects consistent with statutory requirements.

On track

Ensure the concentrations of mine derived contaminants in surface water downstream of Ranger Mine do not exceed statutory water quality objectives.

Achieved

Annual research and monitoring programs are endorsed by the Alligator Rivers Region Technical Committee.

Achieved

2017–18 Australia’s biodiversity, including priority threatened species, ecological communities, cetaceans and migratory species, and significant heritage places, are identified, conserved and protected.


The number of hectares of habitat protected by offsets8 is equal to or greater than the area impacted9 for approved projects.

8 Location data available is only for those offsets that have been secured, noting there is often a lag once an

offset has been approved as a condition to the actual securing of the offset. This dataset will mature over time and is indicative only. 9 Project footprint.


51




Increase in the use of strategic assessments for environmental assessments and approvals.

Increase in the proportion of approved assessments that apply streamlining policy initiatives, including outcomes based conditions, conditions setting policy, and bilateral assessment agreements.



The Alligator Rivers Region environment remains protected from uranium mining impacts consistent with statutory requirements.

Ensure the concentrations of mine derived contaminants in surface water downstream of Ranger Mine do not exceed statutory water quality objectives.

Annual research and monitoring programs are endorsed by the Alligator Rivers Region Technical Committee.


As for 2017–18 As for 2017–18

Purpose Conserve, protect and sustainably manage Australia’s biodiversity and heritage.


52

Program 1.6 – Management of Hazardous Wastes, Substances and Pollutants

The objective of this program is to protect the environment through national approaches to effectively and efficiently manage hazardous wastes, substances and pollutants.


Discharge of legislative and regulatory functions and effective and efficient delivery of government policies, programs and priorities in relation to environmental health

Significant progress on implementing government reforms in relation to environmental health

Implementing a risk based approach to compliance and enforcement activities to support regulation under the Fuel Quality Standards Act 2000 and the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.


Year Performance criteria (a) Targets


On track


Achieved


On track


On track






As for 2017–18 As for 2017–18



Measure title –National Emissions Standards for Non-road Spark Ignition Engines and Equipment – cost recovery

(a) New or modified performance criteria that reflect new or materially changed programs are shown in italics.


53


Outcome 2: Reduce Australia’s greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.

Linked programs

Attorney-General’s Department

Programs

Program 1.2 – National Security and Criminal Justice


The Attorney-General's Department provides joint secretariat support with the Department of the Environment and Energy for the Australian Government Disaster and Climate Resilience Reference Group. The Group is a senior forum to progress policy on disaster and climate resilience.


Programs

Program 1.1 – Australian Renewable Energy Agency


The Department of the Environment and Energy has responsibility for developing and implementing policies that reduce Australia's greenhouse gas emissions. The Australian Renewable Energy Agency contributes to implementing these policies by providing financial assistance for the research, development, demonstration, deployment and commercialisation of clean energy technologies. This provides options to meet future emission reduction targets at lower cost.

Australian Taxation Office

Programs

Program 1.1 – Australian Taxation Office


The Department of the Environment and Energy shares information on Emissions Reduction Fund tree planting projects with the Australian Taxation Office which administers the Carbon Sink Forest Tax measure, a tax deduction available to these projects.


54


Programs



The Bureau of Meteorology works collaboratively with the Department of the Environment and Energy to provide weather/climate information and to engage with other climate science providers to identify priority investment areas and research needs.


Programs



The Department of the Environment and Energy has responsibility for policies that reduce Australia’s greenhouse gas emissions. The Clean Energy Finance Corporation contributes to these programs by facilitating increased flows of finance into the clean energy sector.


Programs

Program 1.1 – Clean Energy Regulator


The Department of the Environment and Energy has policy responsibility for the Emissions Reduction Fund and the Renewable Energy Target. The Clean Energy Regulator works collaboratively with the Department as the delivery agency and regulator for these schemes.


Programs

Program 1.1 – Reviewing climate change mitigation policies


The Climate Change Authority supports the Department of the Environment and Energy in reducing Australia's greenhouse gas emissions by providing independent climate change mitigation policy advice to the Government.


55


Programs



The Department of the Environment and Energy is collaborating with the Commonwealth Scientific and Industrial Research Organisation on climate science research needs through the Climate Science Centre.


Programs



The Department of Foreign Affairs and Trade leads for the Government on

international climate change negotiations under the United Nations Framework

Convention on Climate Change (UNFCCC). The Department of the Environment

and Energy works with DFAT in formulating advice to Government on these

matters and representing Australia at UNFCCC meetings.

The Department of the Environment and Energy also delivers a number of

Australian Government funded projects that support climate change capacity

development projects in developing countries.

Department of Industry, Innovation and Science

Programs

Program 3 – Program Support


The Department of the Environment and Energy provides joint secretariat support for the National Climate Science Advisory Committee. The Committee advises the Australian Government on a nationally integrated approach to climate change impacts and inform the direction and sustainability of Australia's climate science capacity and research priorities.


56

Department of Infrastructure and Regional Development

Programs

Program 2.2 – Infrastructure and Regional Development


The Department of Infrastructure and Regional Development is consulting on a proposal to implement fuel efficiency standards for light vehicles. Fuel efficiency standards would contribute to reducing Australia’s greenhouse gas emissions by reducing emissions from light vehicles.


Programs



The Department of the Environment and Energy supports the Government's agenda to improve results for Indigenous Australians by offering opportunities to work on country and generate income through projects that reduce Australia's greenhouse gas emissions under the Emissions Reduction Fund.


Programs



Climate Change is the most significant threat to the Great Barrier Reef. The

Department of the Environment and Energy is responsible for policy to support an

effective global response to climate change and for adapting to climate change.


57






Outcome 2: Reduce Australia's greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 2.1: Reducing Australia's Greenhouse Gas Emissions




Extending the benefits of the

Carbon Farming initiative 428 - - - -

Solar Towns 321 - - - - Independent Scientific Committee

on Wind Turbines 29 29 15 - -

Solar Programs 2,100 3,649 423 - -

Administered total 2,878 3,678 438 - -




in the Budget year (c) 6,761 5,433 1,392 84 84



Program 2.2: Adapting to Climate Change




National Climate Change

Adaptation Research Facility 2,730 - - - -

Administered total 2,730 - - - -




in the Budget year (c) 5 5 5 5 5




58


Outcome 2: Reduce Australia's greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 2.3: Renewable Energy Technology Development


Special appropriations

Australian Renewable Energy

Agency Act 2011 189,037 257,925 235,296 254,704 134,035

Less payments to corporate

entities (d) (189,037) (257,925) (235,296) (254,704) (134,035)

Payments to corporate entities (d) 299,414 259,998 237,759 257,572 137,041



Departmental appropriation (a) 7,179 6,640 5,976 4,012 4,018






(Appropriation Bill No. 1) 5,608 3,678 438 - -

Payments to corporate entities (d) 299,414 259,998 237,759 257,572 137,041





in the Budget year (c) 6,766 5,438 1,397 89 89




59


Movement of administered funds between years (e)

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Outcome 2:

Solar Towns (f) 321 - - - -

Total movement of administered funds 321 - - - -

2016-17 2017-18

Average staffing level (number) 288 284

(a) Outcome 2 also has a departmental capital budget of $0.450 million in 2017-18.


(c) Expenses not requiring appropriation comprise depreciation expenses, amortisation expenses, audit fees and an approved operating loss.

(d) Further information on payments to corporate entities can be found in the "Third Party Payments" section of Table 1.1: Department of the Environment and Energy resource statement.

(e) Figures displayed in brackets represent a decrease in funds.

(f) This movement was from 2015-16.



60



Outcome 2. It summarises how each program is delivered and where 2017–18 Budget


Outcome 2 – Reduce Australia’s greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.

Program 2.1 – Reducing Australia’s Greenhouse Gas Emissions

The objective of this program is to shape the global response to climate change and achieve Australia’s greenhouse gas emissions reduction targets through effective emissions reduction mechanisms, including the Emissions Reduction Fund, Carbon Neutral Program and the Renewable Energy Target.


Implementing the Emissions Reduction Fund components (crediting, purchasing and safeguard) and the Carbon Neutral Program

Encouraging the uptake of additional renewable energy and energy innovation through the Renewable Energy Target, the Solar Communities program and collaborating with the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.



2016–17 Australia meets its obligations under international climate change agreements.

On track

Australia meets its 2020 emissions reduction target.

On track

Electricity generation from eligible large scale sources reaches the legislated target of 33,000 GWh in 2020. With support from small scale and other renewable energy generation, such as the Small-scale Renewable Energy Scheme and the Solar programs, this delivers 23.5 per cent from renewable sources in 2020.

On track

A doubling of Australian Government expenditure on clean energy research and development on 2015 levels by 2020 consistent with Australia’s Mission Innovation pledge.

On track


61


The objective of this program is to shape the global response to climate change and achieve Australia’s greenhouse gas emissions reduction targets through effective emissions reduction mechanisms, including the Emissions Reduction Fund, Carbon Neutral Program and the Renewable Energy Target.


2017–18 Australia meets its obligations under international climate change agreements.

Australia meets its 2020 emissions reduction target.

Electricity generation from eligible large scale sources reaches the legislated target of 33,000 GWh in 2020. With support from small scale and other renewable energy generation, such as the Small-scale Renewable Energy Scheme and the Solar programs, this delivers 23.5 per cent from renewable sources in 2020.

A doubling of Australian Government expenditure on clean energy research and development on 2015 levels by 2020 consistent with Australia’s Mission Innovation pledge.


As for 2017–18 As for 2017–18

Purposes Develop and implement a national response to climate change.


62

Program 2.2 – Adapting to Climate Change

The objective of this program is to provide the guidance, information and national coordination needed to ensure that Australian Government operations and activities are resilient to climate change impacts, and that businesses and communities are better placed to manage their own risks.


Working with Australian Government agencies to improve understanding and consideration of climate risk to Government operations, program, and policies

Guiding development of public good climate science, and adaptation information and guidance, to improve understanding of climate change impacts, build capacity, and inform decision-making.



2016–17


On track

The Department supports capability development across Government in adaptation and understanding climate risk.

On track

National coordination, including collaboration with jurisdictions, leading to identification of cross-cutting climate risks and development of future national climate change adaptation priorities and resilience measures.

On track

2017–18 Data and information generated or commissioned by the Department are used by stakeholders and/or support evidence based decision-making.

The Department supports capability development across Government in adapting to and understanding climate risk.

National coordination, including collaboration with jurisdictions, leading to identification of cross-cutting climate risks and development of future national climate change adaptation priorities and resilience measures.


As for 2017–18 As for 2017–18



Measure title – Adaptation Partnership



63

Program 2.3 – Renewable Energy Technology Development

The objective of this program is to support the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.

Delivery Program 2.3 will be delivered by providing support for Australian Renewable Energy Agency and Clean Energy Finance Corporation to encourage the uptake of additional renewable energy and energy innovation.



2016–17 Support ARENA and the CEFC to increase the investment of funds into the Australian economy supporting clean energy technologies, including the number of projects progressing beyond the research and development phase of the innovation chain.

On track

2017–18 Support ARENA and the CEFC to increase the investment of funds into the Australian economy supporting clean energy technologies, including the number of projects progressing beyond the research and development phase of the innovation chain.


As for 2017–18 As for 2017–18



64


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

Linked programs


Programs



The Bureau of Meteorology provides meteorological and related services in support of the Australian Antarctic program under a Memorandum of Understanding.


Programs



The Commonwealth Scientific and Industrial Research Organisation undertakes scientific research and monitoring in the Southern Ocean and at Australia’s Antarctic Stations, as part of the Australian Antarctic program.

Department of Defence

Programs

Program 2.3 – Chief Finance Officer


The Department of Defence provides a range of logistics support services and advice to the Australian Antarctic program, including hydrographic mapping services and heavy lift capability to supplement existing flights in the delivery of cargo and contributing to emergency responses in the region.


65


Programs



The Department of Foreign Affairs and Trade, in cooperation with the Department of the Environment and Energy, leads a whole of government approach to Antarctic policy development and international relations, including through the Antarctic Treaty System.


66






Outcome 3: Advance Australia's strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 3.1: Antarctica: Science, Policy and Presence



in the Budget year (a) 12 12 12 12 12



Departmental appropriation (b, c) 125,475 120,932 109,811 121,731 133,162


in the Budget year (a) 53,972 56,028 55,073 50,945 78,566





Expenses not requiring appropriation in

the Budget year (a) 12 12 12 12 12



Departmental appropriation (b, c) 125,475 120,932 109,811 121,731 133,162


in the Budget year (a) 53,972 56,028 55,073 50,945 78,566



2016-17 2017-18


(a) Expenses not requiring appropriation in the Budget year comprise depreciation expenses, amortisation expenses, audit fees and an approved operating loss.

(b) Outcome 3 also has a departmental capital budget of $13.014 million in 2017-18. (c) Includes retained revenue receipts under section 74 of the Public Governance, Performance and

Accountability (PGPA) Act 2013.



67





Outcome 3 – Advance Australia’s strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.

Program 3.1 – Antarctica: Science, Policy and Presence

The objective of this program is to conduct scientific research in Antarctica and the Southern Ocean that supports Australian Government policy and environmental management priorities.


Implementing the Australian Antarctic Strategy and 20 Year Action Plan

Delivering the 2017–18 Australian Antarctic program including high priority Australian Antarctic scientific research in accordance with the goals of the Australian Antarctic Science Strategic Plan 2011–12 to 2020–21, the safe operation of four Antarctic and sub-Antarctic stations and an associated logistical network

Administering and protecting the Antarctic environment by undertaking practical work of economic and international significance including compliance with all Australian Antarctic environmental legislation.



2016–17 The Antarctic Treaty system remains in force under sound governance and its values are understood and supported.

On track

Implementation of year one of the Australian Antarctic Strategy and 20 Year Action Plan.

On track

Antarctica and the Southern Ocean are protected, valued and understood.

On track

Australian Antarctic program complies with relevant environmental legislation.

On track

Australia leads Antarctic science and operations in the Australian Antarctic Territory and consolidates Hobart as the premier Antarctic gateway city for east Antarctica.

On track

Scientific research conducted in Antarctica and the Southern Ocean is consistent with the Australian Antarctic Science Strategic Plan and internationally recognised – At least 100 international institutions collaborating in the Australian Antarctic program during 2016–17 including collaborative agreements or logistics with three or more Antarctic programs of other nations.

– At least 100 scientific publications published in peer reviewed journals.

On track


68

Program 3.1 – Antarctica: Science, Policy and Presence

The objective of this program is to conduct scientific research in Antarctica and the Southern Ocean that supports Australian Government policy and environmental management priorities.


2017–18 The Antarctic Treaty system remains in force under sound governance and its values are understood and supported.

Implementation of the Australian Antarctic Strategy and 20 Year Action Plan.

Antarctica and the Southern Ocean are protected, valued and understood.

Australian Antarctic program complies with relevant environmental legislation.

Australia leads Antarctic science and operations in the Australian Antarctic Territory and consolidates Hobart as the premier Antarctic gateway city for east Antarctica.

Scientific research conducted in Antarctica and the Southern Ocean is consistent with the Australian Antarctic Science Strategic Plan and internationally recognised. – At least 100 international institutions collaborating in the Australian Antarctic program including collaborative agreements or logistics with three-four Antarctic programs of other nations.

– At least 100 scientific publications published in peer reviewed journals.


As for 2017–18 As for 2017–18

Purposes Advance Australia’s strategic, scientific and environmental interests in the Antarctic.


69


Outcome 4: Support the reliable, sustainable and secure operations of energy markets through improving Australia's energy efficiency, performance and productivity for the community.

Linked programs

Attorney-General's Department

Programs

Program 1.7 – National Security and Criminal Justice


The Attorney-General's Department provides policy advice and support to the Department of the Environment and Energy in relation to the Critical Infrastructure Resilience Strategy and its application for critical energy infrastructure assets. The Attorney-General's Department also provides funding to the Department of the Environment and Energy for secretariat services to support the Energy Sector Group under the Trusted Information Sharing Network.

Australian Competition and Consumer Commission

Programs

Program 1.2 – Australian Energy Regulator


The Department of the Environment and Energy works with the Australian Energy Regulator by promoting efficient investment in, and efficient operation and use of, energy services for the long term interests of end users of energy with respect to price, quality, safety, reliability and security. The Department facilitates the work streams of the COAG Energy Council in developing electricity and gas rules which the Australian Energy Regulator is responsible for enforcing.


Programs



The Australian Renewable Energy Agency’s financial assistance for clean energy technologies includes support for projects and research on energy market security and reliability matters, such as the integration of variable renewable energy into the electricity system and the role of energy storage technologies. The Department of the Environment and Energy works with the Australian Renewable Energy Agency in formulating advice to the Government on these matters.


70


Programs



The Clean Energy Finance Corporation contributes to the reliable, sustainable and secure operations of energy markets by facilitating increased flows of finance into the clean energy sector, including finance for energy efficiency projects. The Department of the Environment and Energy works with the Clean Energy Finance Corporation in formulating advice to the Government on these matters.


Programs

Program 1.1 – Clean Energy Regulator


The Department of the Environment and Energy has policy responsibility for the Emissions Reduction Fund and the Renewable Energy Target. The Clean Energy Regulator works collaboratively with the Department as the delivery agency and regulator for these schemes. The Department is responsible for energy policy and the Clean Energy Regulator works collaboratively with the Department to understand the impacts of its regulatory activity on the market.


Programs

Program 1.1 – Reviewing Climate Change Mitigation Policies


The Climate Change Authority supports the Department of the Environment and

Energy in reducing Australia’s greenhouse gas emissions by providing independent

climate change mitigation policy advice to the Government, including in relation to

the energy sector.


Programs



The Department of Foreign Affairs and Trade provides diplomatic support to the Department of the Environment and Energy on matters relating to compliance with the International Energy Agency treaty.


71

Department of Industry, Innovation and Science

Programs

Program 2 – Growing Business Investment and Improving Business Capability


The Department of Industry, Innovation and Science contributes to the reliable, sustainable and secure operations of domestic energy markets by working with the Department of the Environment and Energy to deliver more sustainable and competitive gas markets, and more gas supply, through the Domestic Gas Strategy, advancing low emissions fossil fuels technology, including carbon capture and storage, having joint authorship of key government reports on energy and resources data and administering oil and gas operations in Commonwealth waters. The Departments work collaboratively on international engagement with Australia’s key energy resource markets.

National Offshore Petroleum Safety and Environmental Management Authority

Programs

Program 1 – Regulatory oversight of Safety Cases, Well Operations Management Plans and Environment Plans coupled with effective monitoring, investigation and enforcement.


The National Offshore Petroleum Safety and Environmental Management Authority contributes to the work of the Department of the Environment and Energy through its policies and program relating to the effective management and administration of Australia’s offshore energy resources through the Offshore Petroleum and Greenhouse Gas Storage Act 2006.


72






Outcome 4: Support the reliable, sustainable and secure operations of energy markets through improving Australia's energy efficiency, performance and productivity for the community.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 4.1: Energy (a)




Energy Efficiency Programs 590 620 620 620 620

GEMS National Legislative Framework 5,722 5,832 5,832 5,832 5,832 International Energy Agency Compliance

- Collective Action Response - - 7,192 7,318 -

Energy Use Data Model for Better

Forecasting - - 2,500 2,500 2,500



Departmental appropriation (b) 35,363 57,224 47,163 47,458 45,443

Special account

Energy Special Account 2015 10,238 - - - -








(Appropriation Bill No. 1) 6,312 6,452 16,144 16,270 8,952



Departmental appropriation (b) 35,363 57,224 47,163 47,458 45,443

Special account 10,238 - - - -





2016-17 2017-18

Average staffing level (number) 185 220 (a) The responsibility for Energy functions transferred from the Department of Industry, Innovation and

Science as a result of the Administrative Arrangements Orders dated 19 July 2016 and 1 September 2016.


(c) Expenses not requiring appropriation in the Budget year represent audit fees.



73





Outcome 4 – Support the reliable, sustainable and secure operations of energy markets through improving Australia’s energy efficiency, performance and productivity for the community.

Program 4.1 – Energy

The objective of this program is to: lead energy market reform to support investment and market outcomes in the long-term interests of consumers through a national approach to the integration of renewable energy and technology into the National Electricity Market, improving the governance of energy markets and implementation of the Gas Market Reform Package; increase national energy productivity and energy efficiency performance; and support the security of domestic and international electricity, gas and liquid fuel supply chains.


Delivering national energy market reforms for the long-term interests of consumers by working with states and territories through the COAG Energy Council’s national reform agenda

Accelerating development of a wholesale gas market that provides improved signals for investment and supply, while ensuring efficient transportation of gas supply

Implementing the National Energy Productivity Plan 2015–2030

Implementing a series of agreed reforms to the Limited Merits Review regime to ensure better price outcomes for energy customers

Administering regulatory responsibilities under the Greenhouse and Energy Minimum Standards Act 2012, the Building Energy Efficiency Disclosure Act 2010 and the Nationwide House Energy Rating Scheme

Analysing Australia’s electricity, gas and liquid fuels systems and critical infrastructure to identify, monitor and inform responses to domestic energy security challenges

Developing a robust mandatory reporting regime for petroleum statistics that minimises the regulatory burden on industry

Implementing Australia’s plan to return to compliance with our International Energy Agency oil stockholding obligations.



2016–17 Well-functioning energy markets and a robust governance structure that provides efficient price and investment signals and reliable and secure supply to consumers.

On track

Obtain COAG Energy Council’s agreement to the gas market reform package.

Achieved

Implementation of the 2016–17 COAG Energy Council energy market reforms as a matter of priority.

On track

Sound policy advice to support the safe and sustainable operations of energy markets to provide reliable and competitive outcomes for consumers.

Achieved

Review the Limited Merits Review Regime.

Achieved

Support the independent feasibility study of a second Tasmanian interconnector.

On track

http://www.scer.gov.au/publications/national-energy-productivity-plan-2015-2030


74




Implementation of key elements of the National Energy Productivity Plan 2015–2030 including development of a Government Energy Productivity Plan to improve government building operations.

On track

Energy cost and use data used by stakeholders and/or supports evidence based decision-making.

On track

Energy Efficiency Programs:

Effective delivery of activities to support improved energy productivity of Australia's residential and commercial building stock.

Maintaining Commonwealth contribution to the ongoing development and improvement of the National Australian Built Environment Rating System which underpins the Commercial Building Disclosure Program.

On track

Greenhouse and Energy Minimum Standards National Legislative Framework:

2016 –17

2017 –18

2018 –19

2019 –20

New consultation Regulatory Impact Statements published

5 3 3 3

Number of new products registered under the Greenhouse and Energy Minimum Standards (GEMS) Act 2012

4500 4500 4500 4500


75




Effective implementation of the Equipment Energy Efficiency Program under the Greenhouse and Energy Minimum Standards Act 2012

On track

Australia meets its emissions reduction targets.

This target duplicates a target under Outcome 2, Program 2.1. Refer to Outcome 2.

Timely, comprehensive and accurate analysis is provided that informs government decisions in relation to energy security.

On track

Amendments to the Liquid Fuel Emergency Act 1984 introduced to Parliament by February 2017.

Not on track—Amendments are drafted and were listed for the Autumn sitting period but were not introduced to Parliament by February 2017. Amendments may be introduced in Winter 2017 sitting period.

Stand-alone legislation to deliver mandatory reporting of petroleum statistics introduced by March 2017.

On track

The third National Energy Security Assessment used by stakeholders and/or supports evidence based decision-making.

Not applicable—The third National Energy Security Assessment has been deferred until later in 2017.

Australia progresses towards compliance with its International Energy Agency stockholding obligation.

On track

Energy Counsellor to progress Australia’s interests in the International Energy Agency in place in early 2017.

Achieved

2017–18 Well-functioning energy markets and a robust governance structure that provides efficient price and investment signals and reliable and secure supply to consumers.

Implement energy market reforms.

Implement gas market reforms.

Implement governance reforms.

Improve national energy productivity and energy efficiency performance.

Increase energy productivity by 40 per cent by 2030 from 2015 level.


76




Implement the Building Energy Efficiency Disclosure Act 2010 to create a more informed commercial property market and demonstrate improvements in energy efficiency of commercial buildings.

Implement the Minimum Energy Performance Standards and Energy Rating Labelling requirements under the Greenhouse and Energy Minimum Standards (GEMS) Act 2012 to improve the energy efficiency of appliances and equipment sold in Australia.


Timely, comprehensive and accurate analysis is provided that informs government decisions in relation to energy security.

Implement the annual work programs of the National Gas Emergency Response Advisory Committee and the National Oil Supplies Emergency Committee, and represent the Commonwealth in the National Electricity Market Emergency Management Forum.

Australia progresses towards compliance with its International Energy Agency stockholding obligation.

Procurement framework for oil stock tickets developed for Australia to participate in an International Energy Agency collective action.

Mandatory reporting of statistics on petroleum and other fuels to commence in January 2018.

Influence the reform and modernisation agenda of the International Energy Agency.


As for 2017–18 Manage contracts for oil stock tickets in 2018–19 and 2019–20.

In 2019–20, prepare the second phase of Australia’s return to full compliance with its International Energy Agency oil stockholding obligation.

As for 2017–18 for remaining nine targets.

Purposes Support the reliable, sustainable and secure operations of energy markets through improving Australia’s energy efficiency, performance and productivity for the community.


Measure title – Energy for the Future – energy use data model for better forecasting

Measure title – Energy for the Future – gas supply and affordability



77

Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive

snapshot of entity finances for the 2017-18 budget year, including the impact of budget

measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Differences between entity resourcing and financial statements

Departmental

The Agency Resource Statement (Table 1.1) is prepared on a cash basis and provides a

consolidated view of all the cash resources available to the Department of the

Environment and Energy in 2017-18. For departmental items this includes equity

injections and appropriation receivable that is yet to be drawn down to cover payables

and provisions on the Departmental Balance Sheet (Table 3.2). The Comprehensive

Income Statement (Table 3.1) shows only the operating appropriation provided each

year and excludes the appropriation shown in the Departmental capital budget

statement (Table 3.5).

Administered

The resourcing provided to the Clean Energy Finance Corporation Special Account in

Table 1.1 is accounted for as equity funding and there is no impact on the Schedule of

Budgeted Income and Expenses Administered on Behalf of Government (Table 3.7).

The draw downs from the Special Account result in a corresponding increase to

Administered Investments in the Schedule of Budgeted Assets and Liabilities

Administered on Behalf of Government (Table 3.8).

3.1.2 Explanatory notes and analysis of budgeted financial statements

Departmental

Comprehensive Income Statement

The Revenue from Government estimate for 2017-18 of $441.9 million includes

$27.4 million in funding for the new measures outlined in Table 1.2. The Department’s

funding has also increased by $39.9 million across the forward estimates period due to

the measures outlined in Table 1.2.

In relation to expenses, the new funding is predominately directed towards suppliers’

expenditure with a modest increase in ASL and employee benefits expenditure.

Overall total expenses continue to exceed total revenues in each period and the

department has approval to budget for an operating loss in 2017-18 and the forward

estimates period. Expenses not requiring appropriation are a significant component of

the loss and result from maintaining a make-good provision for the Antarctic. The


78

expenditure of prior year appropriation provided by the Department of Foreign

Affairs and Trade also contribute to the loss in 2017-18 and 2018-19.

Budgeted Departmental Balance Sheet

The Department’s net assets position improves in 2017-18 to 2019-20 due to the

injection of equity funding by the Government for Antarctic operations to build a new

icebreaker and a new research station on Macquarie Island. The forward estimates also

include funding to purchase additional plant and equipment for the Antarctic.

Administered

Schedule of Budgeted Income and Expenses Administered on Behalf of Government

Budgeted administered expenses for 2017-18 total $718.4 million and the Department

will pay grants of $291.4 million and $260.0 million of payments to corporate entities in

2017-18. The corporate entity payments are to the Australian Renewable Energy

Agency and primarily sourced from the Special Appropriation received by the

Department for this purpose.

Administered income from gains in 2017-18 of $498.3 million and $1.1 billion over the

forward estimates period is due to water entitlements transferred from the Department

of Agriculture and Water Resources. The water entitlements are a non-cash adjustment

and the transfer is required to the Commonwealth Environmental Water Holder in the

Department.

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

The budgeted administered net assets position increases from $6.7 billion in 2016-17 to

$10.7 billion in 2020-21. The increase is driven by the drawdown of CEFC Special

Account funds, which are invested in CEFC for the purpose of making new loans and

equity investments in the renewable energy sector. The recognition of water

entitlements transferred from the Department of Agriculture and Water Resources is

also a significant factor.


79

3.2 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES

Employee benefits 215,857 227,986 227,230 230,180 242,684

Suppliers 205,780 206,289 167,487 176,668 174,660

Grants 4,148 1,100 1,100 1,050 1,050

Payments to the Director of National

Parks 42,829 46,548 47,397 45,802 44,129

Depreciation and amortisation 47,248 49,205 50,440 45,750 72,488

Finance costs 17,100 17,100 17,100 17,100 17,100

Other expenses 1,061 1,856 400 400 400

Total expenses 534,023 550,084 511,154 516,950 552,511

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 38,327 34,348 24,242 24,242 24,242

Other revenue 4,757 723 723 723 723

Total own-source revenue 43,084 35,071 24,965 24,965 24,965

Total own-source income 43,084 35,071 24,965 24,965 24,965

Net (cost of)/contribution by

services (490,939) (515,013) (486,189) (491,985) (527,546)

Revenue from Government 410,359 441,944 416,968 429,100 437,923

Surplus/(deficit) attributable to the

Australian Government (80,580) (73,069) (69,221) (62,885) (89,623)

Total comprehensive income/(loss) (80,580) (73,069) (69,221) (62,885) (89,623)

Total comprehensive income/(loss)

attributable to the Australian

Government (80,580) (73,069) (69,221) (62,885) (89,623)


80

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

Note: Impact of net cash appropriation arrangements

2016-17 2017-18 2018-19 2019-20 2020-21

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


excluding depreciation/

amortisation expenses previously

funded through revenue

appropriations (33,332) (23,864) (18,781) (17,135) (17,135)

less depreciation/amortisation expenses

previously funded through revenue

appropriations (a) 47,248 49,205 50,440 45,750 72,488


- as per the statement of

comprehensive income (80,580) (73,069) (69,221) (62,885) (89,623)

Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation

Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity appropriations. For information regarding Departmental Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.


81

Table 3.2: Budgeted departmental balance sheet (as at 30 June)

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 1,259 1,259 1,259 1,259 1,259

Trade and other receivables 136,589 70,808 69,127 69,092 69,057

Total financial assets 137,848 72,067 70,386 70,351 70,316

Non-financial assets

Buildings 244,578 234,237 230,323 226,839 222,083

Property, plant and equipment 260,535 448,078 512,174 607,463 575,955

Intangibles 16,769 20,627 20,721 21,991 23,638

Inventories 8,777 8,777 8,777 8,777 8,777

Prepayments 4,687 4,687 4,687 4,687 4,687

Total non-financial assets 535,346 716,406 776,682 869,757 835,140

Total assets 673,194 788,473 847,068 940,108 905,456

LIABILITIES

Payables

Suppliers 14,239 14,239 14,239 14,239 14,239

Grants 1,108 1,108 1,108 1,108 1,108

Other payables 5,659 5,659 5,659 5,659 5,659

Total payables 21,006 21,006 21,006 21,006 21,006

Provisions

Employee provisions 70,214 70,214 70,214 70,214 70,214

Antarctic make good provisions (a) 570,415 587,515 604,615 621,715 638,815

Other provisions 8,438 8,438 8,438 8,438 8,438

Total provisions 649,067 666,167 683,267 700,367 717,467

Total liabilities 670,073 687,173 704,273 721,373 738,473

Net assets 3,121 101,300 142,795 218,735 166,983

EQUITY (b)

Parent entity interest

Contributed equity 440,201 611,449 722,165 860,990 898,861

Reserves 288,488 288,488 288,488 288,488 288,488

Accumulated deficit (725,568) (798,637) (867,858) (930,743) (1,020,366)

Total parent entity interest 3,121 101,300 142,795 218,735 166,983

Total equity 3,121 101,300 142,795 218,735 166,983

Prepared on Australian Accounting Standards basis.

(a) The Department has a "make good" obligation for: the removal and site restoration of buildings and infrastructure located in Antarctica and on sub-Antarctic Macquarie Island; and remediation of past waste disposal sites and areas of ground contamination in Antarctica for which Australia is responsible. These make good provisions are calculated using a net present value methodology. This requires that each year the provision increases by the value of unwinding a discount on the future value of the provisions. This increase results in liabilities that are not covered by assets for the Department. Funding will not be provided to the Department until such time as payments are required to be made, which is beyond the forward estimates.

(b) Equity is the residual interest in assets after the deduction of liabilities.


82

Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2017-18)

Retained earnings

$'000

Asset revaluation

reserve $'000

Contributed equity/ capital $'000

Total equity

$'000

Opening balance as at 1 July 2017 Balance carried forward from previous period (725,568) 288,488 440,201 3,121

Adjusted opening balance (725,568) 288,488 440,201 3,121

Comprehensive income Deficit for the period (73,069) - - (73,069)

Total comprehensive income (73,069) - - (73,069)

of which: Attributable to the Australian Government (73,069) - - (73,069)

Transactions with owners Contributions by owners Equity Injection - Appropriations - - 146,656 146,656

Departmental Capital Budget - - 24,592 24,592

Sub-total transactions with owners - - 171,248 171,248

Estimated closing balance as at 30 June 2018 (798,637) 288,488 611,449 101,300

Closing balance attributable to the Australian Government (798,637) 288,488 611,449 101,300



83

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2016-17 Estimated

actual $’000

2017-18 Budget

$’000


$’000


$’000


$’000

OPERATING ACTIVITIES

Cash received

Appropriations 384,215 542,073 442,891 453,377 462,200

Sale of goods and rendering of

services 38,327 34,348 24,242 24,242 24,242

Other 18,649 - - - -

Total cash received 441,191 576,421 467,133 477,619 486,442

Cash used

Employees 207,707 227,986 227,230 230,180 242,684

Suppliers 205,009 205,566 166,764 175,945 173,937

Grants 4,148 1,100 1,100 1,050 1,050

Payments to Director of National Parks 42,829 46,548 47,397 45,802 44,129

s74 Receipts transferred to OPA 38,327 34,348 24,242 24,242 24,242

Other 1,061 1,856 400 400 400

Total cash used 499,081 517,404 467,133 477,619 486,442

Net cash used by operating activities (57,890) 59,017 - - -

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and

equipment and intangibles 113,918 230,265 110,716 138,825 37,871

Total cash used 113,918 230,265 110,716 138,825 37,871

Net cash used by investing activities (113,918) (230,265) (110,716) (138,825) (37,871)

FINANCING ACTIVITIES

Cash received


Departmental capital budget 27,026 24,592 24,467 24,562 24,711


Net cash from financing activities 171,808 171,248 110,716 138,825 37,871

Net increase (decrease)

in cash held - - - - -

Cash and cash equivalents at the

beginning of the reporting period 1,259 1,259 1,259 1,259 1,259


end of the reporting period 1,259 1,259 1,259 1,259 1,259



84

Table 3.5: Departmental capital budget statement (for the period ended 30 June)

2016-17 Estimated

actual $’000

2017-18 Budget

$’000


$’000


$’000


$’000

NEW CAPITAL APPROPRIATIONS

Capital budget – Bill 1 (DCB) 24,937 24,592 24,467 24,562 24,711

Equity injections – Bill 2 144,782 146,656 86,249 114,263 13,160

Total new capital appropriations 169,719 171,248 110,716 138,825 37,871

Provided for:

Purchase of non-financial assets 169,719 171,248 110,716 138,825 37,871

Total Items 169,719 171,248 110,716 138,825 37,871

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriation (a,b) 86,892 205,673 86,249 114,263 13,160

Funded by capital appropriation -

DCB (c) 27,026 24,592 24,467 24,562 24,711

TOTAL 113,918 230,265 110,716 138,825 37,871

RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLE

Total purchases 113,918 230,265 110,716 138,825 37,871

Total cash used to acquire assets 113,918 230,265 110,716 138,825 37,871

Prepared on Australian Accounting Standards basis. (a) Includes both current Appropriation Bill (No. 2) and prior Appropriations Act (No. 2/4/6)

appropriations.

(b) Assets funded by capital appropriation in 2016-17 and 2017-18 differ from the amounts included in the resource statement at Table 1.1 due to an approved Bill (No. 2) – Non Operating Movement of Funds for the acquisition of a new Antarctic Icebreaker.

(c) Includes purchases funded by current and previous years’ Departmental Capital Budgets.


85

Table 3.6: Statement of departmental asset movements (Budget year 2017-18)

Buildings

$’000

Other property, plant and

equipment $’000

Computer software

and intangibles

$’000

Total

$’000

As at 1 July 2017 Gross book value 320,338 313,675 79,393 713,406

Accumulated depreciation/amortisation and impairment (75,760) (53,140) (62,624) (191,524)

Opening net book balance 244,578 260,535 16,769 521,882

Capital asset additions Estimated expenditure on new or replacement assets By purchase – appropriation equity (a) 5,018 141,238 400 146,656

By purchase – non operating (b) - 59,017 - 59,017

By purchase – appropriation ordinary annual services (c) 8,393 4,996 11,203 24,592

Total additions 13,411 205,251 11,603 230,265

Other movements Depreciation/amortisation expense (23,752) (17,708) (7,745) (49,205)

Total other movements (23,752) (17,708) (7,745) (49,205)

As at 30 June 2018 Gross book value 333,749 518,926 90,996 943,671

Accumulated depreciation/amortisation and impairment (99,512) (70,848) (70,369) (240,729)

Closing net book balance 234,237 448,078 20,627 702,942


(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2017-18.

(b) Includes an approved Bill 2 – Non Operating Movement of Funds for the acquisition of a new Antarctic Icebreaker.

(c) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.


86

Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

2016-17 Estimated

actual $’000

2017-18 Budget

$’000


$’000


$’000


$’000

EXPENSES

Suppliers 190,437 165,690 130,271 95,281 69,451

Grants 305,968 291,354 269,062 306,200 257,353

Depreciation and amortisation 12 12 12 12 12

Payments to corporate entities 299,414 259,998 237,759 257,572 137,041

Other expenses 1,402 1,308 1,308 - -

Total expenses administered on

behalf of Government 797,233 718,362 638,412 659,065 463,857

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other taxes 171 171 171 171 171

Total taxation revenue 171 171 171 171 171

Non-taxation revenue

Fees and fines 19,223 20,304 22,951 23,227 23,255

Interest – state and territory

government loans 38 14 3 - -

Dividends 19,500 20,800 22,100 23,400 24,700

Other revenue 3,996 4,319 716 5,148 1,307

Total non-taxation revenue 42,757 45,437 45,770 51,775 49,262

Total own-source revenue

administered on behalf of

Government 42,928 45,608 45,941 51,946 49,433

Gains

Other gains 405,296 498,261 655,407 250,000 235,000

Total gains administered on behalf

of Government 405,296 498,261 655,407 250,000 235,000

Total own-sourced income administered

on behalf of Government 448,224 543,869 701,348 301,946 284,433

Net (cost of)/contribution by services (349,009) (174,493) 62,936 (357,119) (179,424)

Total comprehensive income/(loss) (349,009) (174,493) 62,936 (357,119) (179,424)



87

Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Taxation receivables 78 78 78 78 78


Other investments 3,350,782 3,901,158 4,431,339 5,051,694 5,701,694

Total financial assets 3,356,383 3,906,591 4,436,712 5,057,067 5,707,067


Heritage and cultural assets 1,025 1,013 1,001 989 977

Water assets 3,316,727 3,814,988 4,470,395 4,720,395 4,955,395

Computer software 5 5 5 5 5

Inventories 12,000 12,000 12,000 12,000 12,000

Prepayments 1,169 1,169 1,169 1,169 1,169

Total non-financial assets 3,330,926 3,829,175 4,484,570 4,734,558 4,969,546

Total assets administered on

behalf of Government 6,687,309 7,735,766 8,921,282 9,791,625 10,676,613

LIABILITIES

Payables

Suppliers 11,014 11,014 11,014 11,014 11,014

Grants 2,375 2,375 2,375 2,375 2,375

Total payables 13,389 13,389 13,389 13,389 13,389

Total liabilities administered on

behalf of Government 13,389 13,389 13,389 13,389 13,389

Net assets 6,673,920 7,722,377 8,907,893 9,778,236 10,663,224



88

Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Interest 38 14 3 - -

Taxes 171 171 171 171 171

Dividends 19,500 20,800 22,100 23,400 24,700

Fees and fines 19,223 20,304 22,951 23,227 23,255

Other 3,996 4,319 716 5,148 1,307


Cash used

Suppliers 190,437 165,690 130,271 95,281 69,451

Grants 305,968 291,354 269,062 306,200 257,353

Payments to corporate entities 299,414 259,998 237,759 257,572 137,041

Other 1,402 1,308 1,308 - -

Total cash used 797,221 718,350 638,400 659,053 463,845

Net cash used by operating

activities (754,293) (672,742) (592,459) (607,107) (414,412)


Cash received

Repayments of advances and loans 340 168 60 - -

Total cash received 340 168 60 - -

Cash used

Corporate entity investments 1,000,619 550,376 530,181 620,355 650,000

Total cash used 1,000,619 550,376 530,181 620,355 650,000

Net cash from/(used by) investing

activities (1,000,279) (550,208) (530,121) (620,355) (650,000)

Net increase/(decrease) in cash held (1,754,572) (1,222,950) (1,122,580) (1,227,462) (1,064,412)

Cash and cash equivalents at

beginning of reporting period - - - - -

Cash from Official Public Account for:

- Appropriations 406,223 358,332 318,160 330,045 191,963

- Special Accounts 3,263,860 2,863,250 838,383 932,866 909,192

Total cash from Official Public

Account 3,670,083 3,221,582 1,156,543 1,262,911 1,101,155

Cash to Official Public Account for:

- Appropriations (26,798) (30,164) (33,963) (35,449) (36,743)

- Special Accounts (1,888,713) (1,968,468) - - -

Total cash to Official Public Account (1,915,511) (1,998,632) (33,963) (35,449) (36,743)

Cash and cash equivalents at end

of reporting period - - - - -



89

Table 3.10: Statement of administered asset movements (Budget year 2017-18)

Heritage and

cultural assets

Water assets

Computer software

Total

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

As at 1 July 2017

Gross book value 1,060 3,442,853 2,870 3,446,783

Accumulated depreciation,

amortisation and impairment (35) (126,127) (2,865) (129,027)

Opening net book balance 1,025 3,316,726 5 3,317,756

CAPITAL ASSET ADDITIONS

Other movements

Assets received free of charge (a) - 498,261 - 498,261

Depreciation/amortisation expense (12) - - (12)

Total other movements (12) 498,261 - 498,249

As at 30 June 2018

Gross book value 1,060 3,941,114 2,870 3,945,044

Accumulated depreciation,

amortisation and impairment (47) (126,127) (2,865) (129,039)

Closing net book balance 1,013 3,814,987 5 3,816,005

Prepared on Australian Accounting Standards basis. (a) Water assets received from the Department of Agriculture and Water Resources.

91

AUSTRALIAN RENEWABLE ENERGY

AGENCY


PERFORMANCE

93

AUSTRALIAN RENEWABLE ENERGY AGENCY

SECTION 1: ENTITY OVERVIEW AND RESOURCES ............................................... 95

1.1 Strategic direction statement .......................................................................... 95

1.2 Entity resource statement ............................................................................... 96

1.3 Budget measures ............................................................................................ 98

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................... 99

2.1 Budgeted expenses and performance for Outcome 1 .................................. 100

SECTION 3: BUDGETED FINANCIAL STATEMENTS ............................................. 104

3.1 Budgeted financial statements...................................................................... 104

3.2 Budgeted financial statements tables ........................................................... 105

95

AUSTRALIAN RENEWABLE ENERGY AGENCY



The Australian Renewable Energy Agency is a Corporate Commonwealth Entity under

the Public Governance, Performance and Accountability Act 2013 and administers

Government financial assistance for renewable energy and related technologies in line

with the Australian Renewable Energy Agency Act 2011.

The Australian Renewable Energy Agency objectives are to improve the

competitiveness of renewable energy technologies and increase the supply of

renewable energy in Australia. Through this, the Agency provides options to meet

future emission reduction targets at lower cost.

The Australian Renewable Energy Agency’s functions include providing financial

assistance for:

the research, development, demonstration, deployment and commercialisation of renewable energy and related technologies

the storage and sharing of knowledge and information about renewable energy technologies.

The Australian Renewable Energy Agency also collects, analyses, interprets and

disseminates information and knowledge relating to renewable energy and related

technologies and provides advice to the Minister for the Environment and Energy

about these technologies and the renewable energy industry.

The Australian Renewable Energy Agency, with the Clean Energy Finance

Corporation, jointly manage the Clean Energy Innovation Fund.

In line with this, the Australian Government has announced that the Australian

Renewable Energy Agency will be given an expanded remit to enable it to consider

supporting a broader range of clean energy technology options, including energy

efficiency.

Australian Renewable Energy Agency Budget Statements

96



operations and to deliver programs and services on behalf of the government.


policy objectives) and by administered (on behalf of the government or the public) and


For more detailed information on special appropriations, please refer to Budget Paper

No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (i.e. appropriations/cash

available) basis, while the ‘Budgeted expenses by Outcome’ tables in Section 2 and the



97

Table 1.1: Australian Renewable Energy Agency resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual $'000

2017-18 estimate

$'000

Opening balance/cash reserves at 1 July 41,660 56,692

Funds from Government


Outcome 1 1,221 2,073

Total annual appropriations 1,221 2,073

Amounts received from related entities

Amounts from Portfolio Department (b) 298,193 257,925

Total amounts received from related entities 298,193 257,925

Total funds from Government 299,414 259,998

Funds from other sources

Interest 1,144 1,000

Other 12,700 -

Total funds from other sources 13,844 1,000

Total net resourcing for Australian Renewable Energy Agency 354,918 317,690

2016-17 2017-18

Average staffing level (number) (c) 2 2

Available appropriations according to the ARENA Act 299,414 259,998

Less: estimated actual expenses (299,414) (259,998)

Available appropriations carried forward (d) - -

Prepared on a resourcing (i.e. appropriations available) basis.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.

(a) Appropriation Bill (No. 1) 2017-18.

(b) Funding provided by the Portfolio Department that is not specified within the Annual Appropriation Bills as a payment to that corporate entity (for example, a grant awarded to a corporate entity from one of its Portfolio Department's administered programs).

(c) The Agency only has two employees, the CEO and CFO. Under section 62 of the Australian Renewable Energy Agency Act 2011 all other staff necessary to assist the Agency must be persons employed under the Public Services Act 1999 who are employed by the Department and made available to the Agency by the Secretary of the Department.

(d) Funding provided by the Portfolio Department reflects the Agency’s Special Appropriation under section 64 of the Australian Renewable Energy Agency Act 2011.


98

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Australian Renewable Energy Agency are

detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Australian Renewable Energy Agency 2017-18 Budget measures


There are no 2017-18 Budget measures relating to the Australian Renewable Energy

Agency.

Part 2: Other measures not previously reported in a portfolio statement

Program 2016-17

$'000 2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000

Measures

Budget Savings (Omnibus) Bill – amendments (a) 1.1


- 150,000 168,000 235,000 122,000

Total

- 150,000 168,000 235,000 122,000

Total measures

Departmental

- 150,000 168,000 235,000 122,000

Total - 150,000 168,000 235,000 122,000

Prepared on a Government Finance Statistics (fiscal) basis.

(a) The lead entity for measure Budget Savings (Omnibus) Bill – amendments is the Department of Social Services.


99










Note:







story.

The most recent corporate plan and annual performance statement for the Australian

Renewable Energy Agency can be found at https://arena.gov.au/about-

arena/corporate-publications/

https://arena.gov.au/about-arena/corporate-publications/

https://arena.gov.au/about-arena/corporate-publications/


100


Outcome 1: Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewable energy by administering financial assistance, developing analysis and advice about, and sharing information and knowledge with regard to, renewable energy and related technologies.

Linked programs




The Clean Energy Innovation Fund is jointly managed by the Agency and the Clean

Energy Finance Corporation, drawing on their complementary experience and

expertise. The Clean Energy Innovation Fund has up to $200 million available for

debt and equity investments in emerging clean energy projects and businesses, that

should allow projects at the later end of the innovation chain to deliver a financial

return to taxpayers, in addition to the public good return of improving

competitiveness of renewable energy and related technologies.





The Australian Renewable Energy Agency contributes to implementing policies for

the research, development, demonstration, deployment and commercialisation of

clean energy technologies. These policies are developed by the Department of the

Environment and Energy.


101






Outcome 1: Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewable energy by administering financial assistance, developing analysis and advice about, and sharing information and knowledge with regard to, renewable energy and related technologies.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Australian Renewable Energy Agency

Revenue from Government

Ordinary annual services (Appropriation Bill No. 1) 1,221 2,073 2,463 2,868 3,006

Payment from related entities 281,267 257,407 227,677 248,579 130,640

Expenses not requiring appropriation in the budget year 7,354 41,215 6,894 4,826 4,846

Revenues from other independent sources 3,844 1,000 200 200 200


Outcome 1 totals by resource type


Ordinary annual services (Appropriation Bill No. 1) 1,221 2,073 2,463 2,868 3,006


Expenses not requiring appropriation in the budget year 7,354 41,215 6,894 4,826 4,846

Revenues from other independent sources 3,844 1,000 200 200 200


2016-17 2017-18

Average staffing level (number) (a) 2 2

(a) The Department provides staff resources to the Agency free of charge under section 62 of the Australian Renewable Energy Agency Act 2011. This table does not include these staff resources. Budgeted expenses for staff made available to the Agency by the Secretary of the Department are included in Program 2.3 of the Department.


102


Table 2.1.2 details the performance criteria for each program associated with



Outcome 1 – Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewable energy by administering financial assistance, developing analysis and advice about, and sharing information and knowledge with regard to, renewable energy and related technologies.

Program 1.1 – Australian Renewable Energy Agency – to provide funding for research, development and pre-commercial deployment projects that have the potential to lead to the commercialisation of new renewable energy products or services; and to build and support networks, and share the knowledge, insights and data from our funded projects to help participants in Australia’s energy market learn from each other’s experiences.

Delivery To deliver this outcome, the Agency:

Provides financial assistance for the research, development, demonstration, deployment and commercialisation of renewable energy and related technologies

Provides financial assistance for, and undertakes, the collection, storage, analysis and sharing of knowledge and information about renewable energy and related technologies

Provides advice to the Minister for the Environment and Energy about renewable energy and related technologies and the renewable energy industry

Jointly administers the Clean Energy Innovation Fund with the Clean Energy Finance Corporation

The Agency’s financial assistance goes primarily to activities that are expected to advance renewable energy technologies towards commercial readiness, improve business models, or reduce overall industry costs. Organisations developing, testing or deploying innovative renewable energy solutions are the immediate beneficiaries of much of the Agency’s activity. In the long term it is Australian energy users who will benefit from the availability of more competitive renewable energy.



2016-17 Strategic Investment: Provide financial assistance to new projects in accordance with the principles and priorities outlined in the Agency’s General Funding Strategy and Investment Plan.

Target: Provide financial assistance to one or more new projects in each of the Agency’s priority areas, including, for 2016-17, conclusion and contracting of large-scale solar projects in accordance with ARENA’s $100 million competitive round.

- for 2016-17 and future years,

other research, development

and demonstration projects in

accordance with the Agency’s

Investment plan.

Forecast: On track


103

Program 1.1 – Australian Renewable Energy Agency – to provide funding for research, development and pre-commercial deployment projects that have the potential to lead to the commercialisation of new renewable energy products or services; and to build and support networks, and share the knowledge, insights and data from our funded projects to help participants in Australia’s energy market learn from each other’s experiences.


Strategic Investment: Jointly manage the Clean Energy Innovation Fund

Target: Clean Energy Innovation Fund jointly managed in accordance with arrangements established between the Agency and the Clean Energy Finance Corporation.

Forecast: Achieved

Strong Project Assessment, Negotiation Delivery and Knowledge Sharing: Effectively manage projects in accordance with agreement terms to deliver intended outcomes, learn and improve.

Target: Significant project outcomes and lessons learned disseminated.

Forecast: On Track

2017-18 Strategic Investment: Provide financial assistance to new projects in accordance with the principles and priorities outlined in the Agency’s General Funding Strategy and Investment Plan. 10

Provide financial assistance to one or more new projects in each of the Agency’s priority areas.

Strong Project Assessment, Negotiation Delivery and Knowledge Sharing: Effectively manage projects in accordance with agreement terms to deliver intended outcomes, learn and improve.

Significant project outcomes and lessons learned disseminated.

2018-19 and future years

As for 2017-18 As for 2017-18

Purpose To accelerate Australia’s shift to an affordable and reliable renewable energy future.11

10 The Agency’s General Funding Strategy is produced annually, to cover the following three years, and is provided to the Minister for the Environment and Energy for approval by the end of June each year. The Agency’s Investment Plan is prepared in accordance with the General Funding Strategy, and is updated from time to time. The current documents are available at www.arena.gov.au

11 Refers to updated purpose that will be reflected in the 2017-18 Corporate Plan.

http://www.arena.gov.au/


104







The Australian Renewable Energy Agency’s resourcing statement Table 1.1 is directly

comparable to the budgeted financial statements.


Since the publication of the 2016-17 Portfolio Budget Statements, the Parliament passed

the Budget Savings (Omnibus) Bill 2016, which saw $800 million of funding under the

Australian Renewable Energy Agency Act 2011 restored to the Australian Renewable

Energy Agency over five financial years between 2017-18 and 2021-22.

The budgeted financial statements for 2017-18 and forward years reflect the restored

level of the Australian Renewable Energy Agency’s legislated funding. In order to

have all available funds utilised in the next five years, the Australian Renewable

Energy Agency will need to commit the funds to projects in the next three years.

Accordingly, the Agency has budgeted for increased level of activity between 2017-18

and 2019-20, as reflected in increased operating expenses.

The Australian Renewable Energy Agency is budgeting for a deficit in 2017-18 due to

an expected outlay of $41 million in grant expenditure which will not require any

drawdown from its appropriation funding. This amount was returned to the Agency

from a grant project in 2015-16 and the funds were retained and invested by the

Agency for project funding in 2017-18.

All forward years are expected to provide a small surplus. The surplus primarily

represents the investment calls on the Australian Renewable Energy Agency made by

the Renewable Energy Venture Capital Fund. The Agency does not have a capital

appropriation, therefore runs at a surplus when calls are required.

Resources received free of charge represents the cost associated with the resources

made available to the Australian Renewable Energy Agency by the Secretary of the

Department under s62 of the Australian Renewable Energy Agency Act 2011.


105



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES

Employee benefits 932 951 970 979 1,009

Suppliers 28,848 31,725 32,360 33,007 26,406

Grants 262,718 267,501 201,986 220,659 109,449


Other expenses 1,013 1,000 1,000 1,000 1,000

Total expenses 293,686 301,695 237,234 256,473 138,692

LESS:

OWN-SOURCE INCOME

Own-source revenue

Interest 1,144 1,000 200 200 200

Other revenues 2,700 - - - -

Total own-source revenue 3,844 1,000 200 200 200

Gains

Resources received free of charge 7,179 6,640 5,976 3,998 4,018

Total gains 7,179 6,640 5,976 3,998 4,018


Net (cost of)/contribution by services (282,663) (294,055) (231,058) (252,275) (134,474)


Surplus/(deficit) attributable to the Australian Government 16,751 (34,057) 6,701 5,297 2,567

Total comprehensive income/(loss) 16,751 (34,057) 6,701 5,297 2,567

Total comprehensive income/(loss) attributable to the Australian Government 16,751 (34,057) 6,701 5,297 2,567



106


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets



Other investments 30,553 37,496 42,369 45,966 47,333



Property, plant and equipment 1,180 890 600 400 200

Intangibles 451 2,457 2,457 2,329 1,701

Other non-financial assets 174 174 174 174 174


Total assets 90,726 56,669 63,370 68,667 71,234

LIABILITIES

Payables

Suppliers 2,208 2,208 2,208 2,208 2,208

Grants 2,979 2,979 2,979 2,979 2,979

Total payables 5,187 5,187 5,187 5,187 5,187

Provisions

Employee provisions 160 160 160 160 160

Total provisions 160 160 160 160 160


Net assets 85,379 51,322 58,023 63,320 65,887

EQUITY*


Retained surplus (accumulated deficit) 85,379 51,322 58,023 63,320 65,887


Total equity 85,379 51,322 58,023 63,320 65,887

Prepared on Australian Accounting Standards basis. *Equity is the residual interest in assets after the deduction of liabilities.


107


Retained earnings

$'000

Total equity

$'000

Opening balance as at 1 July 2017

Balance carried forward from previous period 85,379 85,379

Adjusted opening balance 85,379 85,379

Comprehensive income Surplus/(deficit) for the period (34,057) (34,057)

Total comprehensive income (34,057) (34,057)

of which: Attributable to the Australian Government 51,322 51,322

Estimated closing balance as at 30 June 2018 51,322 51,322

Closing balance attributable to the Australian Government 51,322 51,322



108


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Receipts from Government 299,414 259,998 237,759 257,572 137,041

Return of grants 12,700 - - - -

Interest 1,144 1,000 200 200 200


Cash used

Employees 932 951 970 979 1,009

Suppliers 21,669 25,085 26,384 29,009 22,388

Grants 262,718 267,501 201,986 220,659 109,449

Total cash used 285,319 293,537 229,340 250,647 132,846

Net cash from/(used by) operating activities 27,939 (32,539) 8,619 7,125 4,395


Cash used


equipment and intangibles 1,270 2,234 628 500 -

Investments 11,637 7,943 5,873 4,597 2,367

Total cash used 12,907 10,177 6,501 5,097 2,367

Net cash from/(used by) investing activities (12,907) (10,177) (6,501) (5,097) (2,367)

Net increase/(decrease) in cash held 15,032 (42,716) 2,118 2,028 2,028

Cash and cash equivalents at the beginning of the reporting period 41,660 56,692 13,976 16,094 18,122

Cash and cash equivalents at the end of the reporting period 56,692 13,976 16,094 18,122 20,150



109


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from

departmental resources (a) 1,270 2,234 628 500 -

TOTAL 1,270 2,234 628 500 -

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 1,270 2,234 628 500 -

Total cash used to acquire assets 1,270 2,234 628 500 -


(a) Includes the following sources of funding:

funding provided by the Portfolio Department reflecting the Agency’s Special Appropriation under section 64 of the Australian Renewable Energy Agency Act 2011, including rollover of unspent funds; and

internally developed assets.


110



equipment $'000

Computer software and

intangibles $'000

Total

$'000

As at 1 July 2017 Gross book value 1,270 854 2,124

Accumulated depreciation/ amortisation and impairment (90) (403) (493)

Opening net book balance 1,180 451 1,631 Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - other - 2,234 2,234 Total additions - 2,234 2,234 Other movements Depreciation/amortisation expense (290) (228) (518) Total other movements (290) (228) (518) As at 30 June 2018

Gross book value 1,270 3,088 4,358 Accumulated depreciation/

amortisation and impairment (380) (631) (1,011) Closing net book balance 890 2,457 3,347


111

BUREAU OF METEOROLOGY


PERFORMANCE

113


SECTION 1: ENTITY OVERVIEW AND RESOURCES ............................................. 115

1.1 Strategic direction statement ........................................................................ 115

1.2 Entity resource statement ............................................................................. 117

1.3 Budget measures .......................................................................................... 119

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................. 120





115




The Bureau of Meteorology provides trusted, reliable and responsive weather, water,

climate and ocean services for Australia—all day, every day. The Bureau of

Meteorology’s work directly informs decisions by governments, industry and the

community and supports all Australians, the Australian Defence Force and key sectors

such as emergency management, aviation, transport, water management, agriculture

and environmental management.

To achieve this, across the domains of weather, water, climate and oceans, the Bureau

of Meteorology:

monitors and reports on current conditions

provides forecasts, warnings and long-term outlooks

analyses and explains trends

fosters greater public understanding and use of information, and

extends its understanding of, and ability to forecast, Australian conditions.

To drive competitive advantage for Australian businesses and industries, and

accumulate significant benefits for the wider community, the Bureau of Meteorology

will continue to pursue the outcome of informed safety, security and economic

decisions by governments, industry and the community through the provision of

information, forecasts, services and research relating to weather, climate and water.

To achieve this outcome in an intensely dynamic environment, the Bureau of

Meteorology has developed a new strategy that augments its strong science and

technology foundations with new skills and new ways of doing things to consistently

provide customers with an outstanding service experience. Taking effect at the start of

the 2017–18 financial year, the new Strategic Plan 2017–2022 will have four key areas of

focus:

Impact and Value - products and services that benefit the Australian community

and drive competitive advantage for businesses and industries.

Operational Excellence - outstanding people, science, systems, infrastructure and

partnerships working together for maximum simplicity, productivity and agility.

Bureau of Meteorology Budget Statements

116

Insight and Innovation - deep understanding and creative thinking that generates

novel solutions for our customers and our organisation.

The Bureau Way - one enterprise, that is safe and diverse, where our people grow

and are empowered to excel, and where our customers come first, trust us and

consider that we are a pleasure to work with.

During 2017–18, the Bureau of Meteorology will continue to implement the Water

Information Program, which received ongoing funding in the 2016–17 Mid-Year

Economic and Fiscal Outlook. Under this program, the Bureau will continue to provide

farmers, irrigators and rural water agencies with essential information and services

that are critical to the profitability and productivity of Australian agriculture and that

support our international competitiveness and community well-being.

Under the Stronger Farmers, Stronger Economy—new drought management

framework measure from 2015-16, the Bureau of Meteorology is continuing to improve

its seasonal climate forecast service for the Australian agricultural sector. Under this

initiative the Bureau is developing more regular, detailed and accurate climate

forecasts to support farmers in managing Australia’s highly-variable weather and

climate for increased competitive advantage.

Following the successful commissioning of the Bureau of Meteorology’s new

supercomputer in June 2016, the Bureau of Meteorology will continue to undertake a

program of improvements to enhance the frequency, accuracy and certainty of

forecasts in the coming years. Funded for seven years in the 2014–15 Budget, the

increased computing power will allow the Bureau to enhance its forecast services to

meet the growing needs of stakeholders into the future.

Under the measure Bureau of Meteorology — improved security and resilience, the

Bureau will improve the security and resilience of its Information Communications

Technology systems and business processes. This will assist the Bureau to continue to

provide reliable, ongoing access to weather, climate, water and oceans information.

The Bureau of Meteorology remains committed to increasing the efficient use of our

resources, investing in the skills and capabilities of our staff, and evaluating

opportunities to increase impact and revenue consistent with the Australian

Government Charging Framework.


117













118

Table 1.1: Bureau of Meteorology resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Departmental


Prior year appropriations available (b) 101,252 106,519

Departmental appropriation (c) 228,407 229,757

s 74 retained revenue receipts (d) 71,363 79,522

Departmental capital budget (e) 42,125 48,111


Prior year appropriations available (b) 6,554 -

Equity injection 28,781 40,217



Total resourcing for the Bureau of Meteorology 478,482 504,126

2016-17 2017-18


Third party payments from and on behalf of other entities

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Payments made to other entities for the provision of services (disclosed above) 28,636 28,929 Receipts received from other entities for the provision of services (disclosed above in s74 Retained revenue receipts section above) 6,461 7,344




(b) Excludes $3.9 million subject to administrative quarantine by Finance or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

(c) Excludes departmental capital budget (DCB).

(d) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

(e) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(f) Appropriation Bill (No. 2) 2017-18.


119

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Bureau of Meteorology are detailed in Budget

Paper No. 2 and are summarised below.

Table 1.2: Bureau of Meteorology 2017-18 Budget measures


Program 2016-17

$'000 2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000

Expense measures

Public Service Modernisation Fund – transformation and innovation stream (a) 1.1


- - - - -

Total

- - - - - Bureau of Meteorology – improved security and resilience 1.1


- nfp nfp nfp nfp

Total

- nfp nfp nfp nfp

Total expense measures

Departmental

- nfp nfp nfp nfp

Total

- nfp nfp nfp nfp

Capital measures

Bureau of Meteorology – improved security and resilience 1.1

Departmental capital

- nfp nfp nfp nfp

Total

- nfp nfp nfp nfp

Total capital measures

Departmental

- nfp nfp nfp nfp

Total - nfp nfp nfp nfp

Prepared on a Government Finance Statistics (fiscal) basis.

(a) This measure includes funding of $0.7 million in 2019-20.


120










Note:







story.

The most recent corporate plan for Bureau of Meteorology can be found at:

http://www.bom.gov.au/inside/Bureau-of-Meteorology-Corporate-Plan-2016-17.pdf.


http://www.bom.gov.au/inside/eiab/reports/ar15-16/doc/2.2-Bureau-of-

Meteorology-Annual-Performance-Statement.pdf.


121


Outcome 1: Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

Linked programs

The outcomes of Program 1.1 Bureau of Meteorology contribute to meeting the objectives of a number of programs delivered by other Commonwealth entities, including the Department of the Environment and Energy, the Department of Agriculture and Water Resources, the Attorney-General's Department, the Department of Health, and the Department of Defence.


122






Outcome 1: Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Bureau of Meteorology


Departmental appropriation 228,407 229,757 221,752 219,107 217,366

s 74 Retained revenue receipts (a) 69,538 74,161 69,284 61,758 61,758 Expenses not requiring appropriation in the Budget year (b) 73,228 73,228 73,228 73,228 73,228


Total expenses for program 1.1 371,173 377,146 364,264 354,093 352,352




s74 Retained revenue receipts (a) 69,538 74,161 69,284 61,758 61,758 Expenses not requiring appropriation in the Budget year (b) 73,228 73,228 73,228 73,228 73,228



2016-17 2017-18

Average staffing level (number) (c) 1,602 1,565 (a) Estimated expenses incurred in relation to receipts retained under section 74 of the Public

Governance, Performance and Accountability Act 2013. (b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

amortisation expenses, make good expenses and audit fees.

(c) ASL numbers include staff used for the purpose of asset construction (capitalised staff).


123





Outcome 1 – Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.


Provides Australians with the environmental intelligence they need to manage and live within their natural environment, encompassing the atmosphere, oceans, water and land.


Weather, water, climate and ocean products and services that benefit the Australian community and drive competitive advantage for businesses and industries.

Outstanding people, science, systems, infrastructure and partnerships working together for maximum simplicity, productivity and agility.

Deep understanding and creative thinking that generates novel solutions for our customers and our organisation.

One enterprise, that is safe and diverse, where our people grow and are empowered to excel, and where our customers come first, trust us and consider that we are a pleasure to work with.



2016-17 Observations meet accuracy, timeliness, completeness, coverage and accessibility specifications.

Forecasts meet accuracy, coverage and timeliness specifications, and are used extensively, and satisfy users.

Warnings meet accuracy, timeliness and coverage specifications, and are effective in influencing responses to impending critical events.

Data and information meet accuracy, timeliness and coverage specifications and satisfy users.

Accurate and timely advice effectively informs decision-making and satisfies the needs of stakeholders and users.

Increased accuracy and capacity of the Bureau’s products and services, and increased levels of stakeholder satisfaction.

Australia’s interests are protected and advanced through effective engagement and the maintenance and development of international agreements that deliver improved outcomes for Australia.

The Bureau is on track to meet the 2016-17 key performance indicators.

Evidence of achievement will be described in the Bureau's Annual Performance Statement 2016-17 in line with the evidence targets described in the 2016-17 Corporate Plan.


124


Provides Australians with the environmental intelligence they need to manage and live within their natural environment, encompassing the atmosphere, oceans, water and land.


2017-18 Financial and social value is delivered to Government, industry and the Australian community.

Delivery of products and services that meet customer requirements, are delivered to budget, meet quality and security specifications and benchmark well in relation to international standards and peer organisations.

The speed, maturity and quality of innovation and novel solutions meets customer needs or enhances internal capability.

Feedback from staff, customers and partners demonstrates alignment of our actual behaviours with our stated intent to create a safe, diverse and empowered enterprise that puts customers first, and provides an outstanding experience every time that they engage with us.

The Bureau’s enterprise level performance criteria have broad relevance across the agency as a whole. Both quantitative and qualitative targets that collectively demonstrate the achievement of the Bureau’s enterprise level performance criteria will be set in the Bureau’s Corporate Plan 2017-18 and reported in the Bureau’s Annual Performance Statement 2017-18.

2018-19 and beyond As for 2017-18 As for 2017-18

Purposes (b) To provide trusted, reliable and responsive weather, water, climate and ocean services for Australia—all day, every day.

Material changes to Program 1.1 resulting from the following measure:

Bureau of Meteorology – improved security and resilience


(b) Refers to updated purposes that will be reflected in the 2017-18 Corporate Plan.


125







An analysis of the Bureau of Meteorology’s budgeted financial statements, as reflected

in the Bureau’s budgeted departmental financial statements and administered

schedules for the 2017–18 Budget, is provided below:

Total revised revenue to the Bureau in 2017–18 is estimated to be $308.1 million, an

increase of $9.5 million from the 2016–17 Budget estimated actual. The movement in

funding is the result of:

funding associated with the Budget measure Stronger farmers, Stronger Economy

– new drought management framework

funding associated with the 2016-17 Additional estimates Budget measure –

Essential Commonwealth Water Functions

funding associated with the 2017-18 Budget measure – Improved security and

resilience

increased funding associated with cost recoverable projects and services, and

reduced funding as a result of the increase in the Efficiency Dividend.

Total expenses are estimated to be $377.1 million, an increase of $6.0 million from the

2016–17 estimated actual. Whilst the Bureau is no longer funded for Depreciation

through Appropriation Bill 1 the expenditure is still recognised on the Income

Statement.


126



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES


Suppliers 109,625 125,183 114,429 104,301 101,901


Losses from asset sales 1 1 1 1 1

Other expenses 1,968 1,947 1,940 1,943 1,944

Total expenses 371,173 377,146 364,264 354,093 352,352

LESS:

OWN-SOURCE INCOME

Own-source revenue


services 70,138 78,297 71,551 62,358 62,358





Surplus/(deficit) attributable to the Australian Government (72,628) (69,092) (70,961) (72,628) (72,628)


Total comprehensive income/(loss) attributable to the Australian Government (72,628) (69,092) (70,961) (72,628) (72,628)


2016-17

$'000 2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000

Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations 600 4,136 2,267 600 600

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 73,228 73,228 73,228 73,228 73,228

Total comprehensive income/(loss) - as per the statement of comprehensive income (72,628) (69,092) (70,961) (72,628) (72,628)


(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation (Bill No. 1) equity appropriations. For information regarding Department Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.


127


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 294 294 294 294 294


Other financial assets 3,454 3,454 3,454 3,454 3,454



Land and buildings 108,724 106,042 103,060 99,904 97,948


Intangibles 76,261 83,381 90,405 93,336 97,164

Inventories 7,205 7,205 7,205 7,205 7,205

Other non-financial assets 5,809 5,809 5,809 5,809 5,809


Total assets 675,033 695,019 690,091 688,372 665,668

LIABILITIES

Payables

Suppliers 35,815 35,815 35,815 35,815 35,815

Other payables 41,350 41,350 41,350 41,350 41,350

Total payables 77,165 77,165 77,165 77,165 77,165

Provisions





Net assets 504,646 523,882 518,204 515,735 493,031

EQUITY*



Reserves 243,400 243,400 243,400 243,400 243,400

Retained surplus (accumulated deficit) (444,787) (513,879) (584,840) (657,468) (730,096)


Total equity 504,646 523,882 518,204 515,735 493,031

Prepared on Australian Accounting Standards basis. *Equity is the residual interest in assets after the deduction of liabilities.


128


Retained earnings

$'000

Asset revaluation

reserve $'000


Total equity

$'000



Comprehensive income Surplus/(deficit) for the period (69,092) - - (69,092)


Transactions with owners Contributions by owners Equity injection - - 40,217 40,217

Departmental capital budget (DCB) - - 48,111 48,111






129


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Appropriations 303,762 294,506 283,520 280,715 279,724


Net GST received 8,310 8,310 8,310 8,310 8,310


Cash used

Employees 183,640 174,076 171,955 171,909 173,317

Suppliers 111,593 127,130 116,369 106,244 103,845

Net GST paid 4,560 4,560 4,560 4,560 4,560

s74 Retained revenue receipts transferred to OPA 70,138 64,350 62,518 62,358 62,358

Total cash used 369,931 370,116 355,402 345,071 344,080

Net cash from/(used by) operating activities 12,279 10,997 7,979 6,312 6,312


Cash received

Proceeds from sales of property, plant and equipment 1,225 1,225 1,225 1,225 1,225


Cash used



Other 3,751 3,751 3,751 3,751 3,751

Total cash used 84,410 100,550 74,487 77,696 57,461



Cash received



Net cash from/(used by) financing activities 70,906 88,328 65,283 70,159 49,924

Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 294 294 294 294 294

Cash and cash equivalents at the end of the reporting period 294 294 294 294 294



130

Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2016-17

Estimated actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Capital budget - Bill 1 (DCB) 42,125 48,111 48,155 44,381 45,475

Equity injections - Bill 2 28,781 40,217 17,128 25,778 4,449


Provided for:


Total items 70,906 88,328 65,283 70,159 49,924


Funded by capital appropriations (a) 34,748 41,366 17,128 25,778 4,449

Funded by capital appropriation - DCB (b) 42,125 48,111 48,155 44,381 45,475 Funded internally from departmental resources (c) 3,786 7,322 5,453 3,786 3,786

TOTAL 80,659 96,799 70,736 73,945 53,710


Total purchases 80,659 96,799 70,736 73,945 53,710



(a) Includes both current Appropriation Bill (No. 2) and prior Act No. 2/4 appropriations. (b) Does not include annual finance lease costs. Includes purchases from current and previous years'

Departmental Capital Budgets (DCBs). (c) Includes the following sources of funding:

- s 74 Retained revenue receipts; - proceeds from the sale of assets.


131


Land

$'000

Buildings

$'000


equipment $'000

Computer software

and intangibles

$'000

Other

$'000

Total

$'000

As at 1 July 2017 Gross book value 16,759 108,050 524,139 201,275 50 850,273

Accumulated depreciation/ amortisation and impairment - (16,085) (170,959) (125,027) (37) (312,108)

Opening net book balance 16,759 91,965 353,180 76,248 13 538,165

Capital asset additions Estimated expenditure on new

or replacement assets By purchase - appropriation equity (a) - - 41,084 282 - 41,366

By purchase - appropriation ordinary annual services (b) - 1,544 22,836 23,731 - 48,111

By purchase - other - 1,200 6,122 - - 7,322

Total additions - 2,744 70,042 24,013 - 96,799

Other movements

Depreciation/amortisation expense - (4,226) (54,070) (16,893) - (75,189)

Disposals (c) - (1,200) (25) - - (1,225)

Total other movements - (5,426) (54,095) (16,893) - (76,414)

As at 30 June 2018 Gross book value 16,759 109,594 594,156 225,288 50 945,847

Accumulated depreciation/ amortisation and impairment - (20,311) (225,029) (141,920) (37) (387,297)

Closing net book balance 16,759 89,283 369,127 83,368 13 558,550


(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2017-18.

(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2017-18 for depreciation/amortisation expenses, DCBs or other operational expenses.

(c) Net proceeds may be returned to the OPA.


132


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

OWN-SOURCE INCOME

Own-source revenue



services nfp nfp nfp nfp nfp

Total non-taxation revenue nfp nfp nfp nfp nfp

Total own-source revenue administered on behalf of Government nfp nfp nfp nfp nfp

Total own-sourced income administered on behalf of Government nfp nfp nfp nfp nfp

Net (cost of)/contribution by services nfp nfp nfp nfp nfp

Total comprehensive income/(loss) nfp nfp nfp nfp nfp



133


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Sales of goods and rendering of services nfp nfp nfp nfp nfp

Total cash received nfp nfp nfp nfp nfp

Net cash from/(used by) operating activities nfp nfp nfp nfp nfp

Net increase/(decrease) in cash held nfp nfp nfp nfp nfp

Cash and cash equivalents at beginning of reporting period


- Appropriations nfp nfp nfp nfp nfp

Total cash to Official Public Account nfp nfp nfp nfp nfp

Cash and cash equivalents at end of reporting period nfp nfp nfp nfp nfp


135

CLEAN ENERGY FINANCE

CORPORATION


PERFORMANCE

137

CLEAN ENERGY FINANCE CORPORATION




1.3 Budget measures .......................................................................................... 143






139

CLEAN ENERGY FINANCE CORPORATION



The Clean Energy Finance Corporation was established to facilitate increased flows of

finance into the clean energy sector. The Corporation invests in accordance with its

legislation, the Clean Energy Finance Corporation Act 2012 and the Clean Energy Finance

Corporation Investment Mandate Direction 2016 (No.2) [Investment Mandate 2016 (No.2)],

as made by the Minister for the Environment and Energy and the Minister for Finance

which took effect on 11 January 2017.

The Clean Energy Finance Corporation is an independent statutory authority - defined

as a corporate Commonwealth entity under the Public Governance, Performance and

Accountability Act 2013. The Corporation has access to $10 billion in appropriations via

the Clean Energy Finance Corporation Special Account (credited with $2 billion every

1 July from 2013 to 2017 inclusive, in accordance with section 46 of the Clean Energy

Finance Corporation Act 2012).

The Clean Energy Finance Corporation is governed by an independent Board which

has statutory responsibility for decision-making, performance of the Corporation’s

functions and managing the Corporation’s investments, and a Chief Executive Officer

who is responsible for the day to day administration of the Corporation. Staff are non-

APS and are employed under the Clean Energy Finance Corporation Act 2012. The Board

reports to Parliament through its responsible Ministers.

The Clean Energy Finance Corporation’s investment objectives are to catalyse and

leverage an increased flow of funds for the commercialisation and deployment of

Australian based renewable energy, energy efficiency and low-emissions technologies.

The Clean Energy Finance Corporation seeks diversity of technology and sector

exposure. All sectors of the economy can undertake investments which contribute to

emissions reduction and projects are drawn widely. The Corporation’s portfolio is

expected to evolve over time, noting the Clean Energy Finance Corporation Act 2012

requirement that on or after 1 July 2018, at least half of the funds invested must be

invested in renewable energy.

The Clean Energy Finance Corporation applies commercial rigour to investment

decisions and seeks to develop a portfolio across the spectrum of clean energy

technologies that, in aggregate, must have an acceptable but not excessive level of risk

relative to the sector. The Corporation applies a commercial filter when making its

investment decisions, focussing on projects and technologies at the later stages of

development. The filter is not as stringent as the private sector equivalent, as the

Clean Energy Finance Corporation Budget Statements

140

Corporation has a public policy purpose and values any positive externalities being

generated. The Corporation considers the positive externalities and public policy

outcomes when making investment decisions and when determining the extent of any

concessionality to be provided for an investment.

In the Investment Mandate 2016 (No.2) the responsible Ministers have directed the

Board to target an average return of at least the five–year Australian Government bond

rate, +3 to +4 per cent per annum as the benchmark return of the core portfolio and the

five–year Australian Government bond rate, +1 per cent per annum as the benchmark

return of the Clean Energy Innovation Fund portfolio. Performance against these

benchmarks is measured before operating expenses. The Portfolio benchmark returns

are medium-term targets and expected to be earned across the portfolios and over a

period of time. In targeting these benchmark returns:

The Australian Government is conscious of the risks inherent in investing in a

large portfolio of financial assets. It acknowledges that in practice this will involve

some short-term volatility in the Corporation’s returns, including the possibility

of losses in some years.

The Corporation undertakes rigorous due diligence and financial modelling

analysis along with assessments of other key investment risks, including credit

risk, to determine appropriate investment structures, financial covenants and the

required legal undertakings for an intended investment, all designed to enhance

and protect the Corporation’s position.

In the Investment Mandate 2016 (No.2) the responsible Ministers have also directed the

Board to make available up to:

$1 billion of investment finance over 10 years for a Reef Funding Program

$1 billion of investment finance over 10 years for a Sustainable Cities Investment

Program

$200 million for debt and equity investment through the Clean Energy Innovation

Fund.

The ways in which the Corporation addresses financial barriers include:

• attracting finance to the Australian market to improve the flow and diversification

of funds for investment into the sector

• assisting project proponents as an arranger, helping to develop the business case

and introduce the proponents to other financiers to seek transaction close

• building knowledge and capacity within the finance sector by participating in

transactions to de-risk the investment, familiarising financiers with new asset

types or through reducing their size of exposure


141

• working with the finance sector to develop and deliver new financial products to

the market, tailored to the needs, attributes and emerging delivery models for

new technologies, which in turn enables small and mid-sized businesses to access

finance for energy productivity enhancing capital investment

• building knowledge and capacity within industry through demonstration and

case studies to promote successful models and opportunities in energy

productivity and clean energy investment

• providing loans at commercial and concessional rates. Where it is necessary and

justified, the Corporation may choose to deploy concessional finance to assist in

overcoming financial impediments and facilitate realisation of the project.


142












Table 1.1: Clean Energy Finance Corporation resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual $'000

2017-18 estimate

$'000

Opening balance/cash reserves at 1 July (a, b) 232,778 300,733


Interest and fees 61,657 84,299


Total net resourcing for Clean Energy Finance Corporation 294,435 385,032

2016-17 2017-18




(a) The Corporation is not directly appropriated as it is a corporate Commonwealth entity as defined under the Public Governance, Performance and Accountability Act 2013.

(b) The Corporation does not hold the Special Account itself and therefore does not have a balance carried forward from earlier years. Under the Clean Energy Finance Corporation Act 2012, the Corporation is able to draw on the cumulative funds available in the Special Account, which are estimated to be $7.979 billion at 1 July 2017.


143

1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Clean Energy Finance

Corporation.


144










Note:







story.

The most recent corporate plan for the Clean Energy Finance Corporation can be found

at: http://www.cleanenergyfinancecorp.com.au/publications/corporate-plan.aspx.


http://annualreport2016.cleanenergyfinancecorp.com.au/performance/annual-

performance-statement/.

http://www.cleanenergyfinancecorp.com.au/publications/corporate-plan.aspx

http://annualreport2016.cleanenergyfinancecorp.com.au/performance/annual-performance-statement/

http://annualreport2016.cleanenergyfinancecorp.com.au/performance/annual-performance-statement/


145


Outcome 1: Facilitate increased flows of finance into Australia’s clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders.

Linked programs


Programs



The Clean Energy Innovation Fund is jointly managed by the Corporation and the Australian Renewable Energy Agency, drawing on their complementary experience and expertise. The Clean Energy Innovation Fund has up to $200 million available for debt and equity investments in emerging clean energy projects and businesses, that should allow projects at the later end of the innovation chain to deliver a financial return to taxpayers, in addition to the public good return of improving competitiveness of renewable energy and related technologies.


Programs


Program 2.1 – Reducing Australia's Greenhouse Gas Emissions




The Department of the Environment and Energy has responsibility for policies that reduce Australia’s greenhouse gas emissions. The Clean Energy Finance Corporation contributes to these programs by facilitating increased flows of finance into the clean energy sector, including through the funding it makes available to the Clean Energy Innovation Fund and Reef Funding Program.


146


Programs



The Corporation is working with the Department of the Prime Minister and Cabinet, state and local governments and other stakeholders to support the Government's Smart Cities Plan, by making up to $1.0 billion of investment finance available over 10 years for clean energy projects that improve the productivity and liveability of cities.


Programs



The Clean Energy Finance Corporation is providing a $1.0 billion investment over

10 years for the Reef Funding Program. The Program will deliver financial

investment in clean energy projects delivered in the Great Barrier Reef catchment

region. In targeting clean energy projects and businesses in the region the Reef

Funding Program supports delivery of the Government’s Reef 2050 plan.


147






Outcome 1: Facilitate increased flows of finance into Australia's clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Clean Energy Finance Corporation

Expenses not requiring appropriation in the Budget year (a) 24,048 36,472 39,719 47,007 51,646 Revenues from other independent sources 29,652 39,187 43,628 48,154 52,161



Expenses not requiring appropriation in the Budget year (a) 24,048 36,472 39,719 47,007 51,646 Revenues from other independent sources 29,652 39,187 43,628 48,154 52,161


2016-17 2017-18


(a) Expenses not requiring appropriation in the Budget year are non-cash charges largely in relation to concessional loan charges, write-down and impairment of assets, any losses on disposal of investments and depreciation and amortisation.


148





Outcome 1 – Facilitate increased flows of finance into Australia’s clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders.

Program 1.1 – Clean Energy Finance Corporation. The Clean Energy Finance Corporation’s mission is: “To accelerate Australia’s transformation towards a more competitive economy in a carbon constrained world, by acting as a catalyst to increase investment in emissions reduction” through:

• investing directly and indirectly, while also attracting private sector investment into clean energy technologies and projects, and

• applying commercial rigour and using financial products and structures to address the barriers inhibiting private sector investment in the sector.

Delivery The Corporation helps mobilise investment in renewable energy, low emissions and energy efficiency projects and technologies in Australia, as well as into manufacturing businesses and services that produce the required inputs. It uses financial products and structures to address the barriers inhibiting investment at the demonstration, commercialisation and deployment stages of innovation.

The Corporation works with private sector financiers and project sponsors, to facilitate and leverage increased flows of finance into the clean energy sector. In undertaking its investment activities, the Corporation must consider the potential effect on other market participants and the efficient operation of the Australian financial and energy markets.

The Corporation shares knowledge and expertise with project sponsors, lenders and the broader industry, helping build capacity within the private sector.

The Corporation is being directed to focus particular attention on investing debt and equity in:

emerging clean energy projects and businesses that involve technologies that have passed beyond the research and development stages but are not yet established or of sufficient maturity, size or otherwise commercially ready to attract sufficient private sector investment

renewable energy, low emissions and energy efficiency projects and businesses that improve liveability, accessibility and productivity of our Cities while reducing congestion and air pollution

supporting emerging and innovative renewable technologies and energy efficiency, such as large scale solar, storage associated with large and small-scale solar, offshore wind technologies, and energy efficiency technologies for the built environment.

The Corporation can also provide up to $300m per annum of concessionality in relation to loans issued at below market interest rates, and guarantees where appropriate and unavoidable. The Corporation must ensure the total value of guarantees at any time does not exceed 5% of the total amount that has been credited to the Special Account under section 46 of the Act.

The Corporation is not a grants making organisation. It seeks to generate positive financial returns and this is expressed in the Investment Mandate as a target portfolio benchmark rate of return. The Corporation therefore makes investments with a commercial approach, based on careful risk assessment and appropriate terms, with an expectation that such investments will be repaid. The Corporation undertakes its investment activity responsibly and manages risk to minimise the likelihood of losses.


149






2016-17 Investment in renewable energy, low emissions and energy efficiency technologies.

Forecast is to exceed the target $800m to $1bn of new contracted investments during the year.

Placement of funds into Australia’s clean energy sector.

Forecast is to exceed the deployment target of $450m.

Carbon abatement from committed projects at ‘cost’ to the Corporation of < $0 is in line with target.

On target to achieve financial leverage better than 1:1.

Performance against portfolio benchmark return set by the government.

The Corporation has taken all reasonable steps to achieve portfolio benchmark return target of the five–year Australian Government bond rate + 3 to + 4 per cent per annum, however portfolio returns are heavily influenced by the Corporation’s public policy purpose and are currently forecast to be in excess of relevant five–year Australian Government bond rate but less than the target portfolio benchmark return.

Operating expenditure before concession and impairment is forecast to be less than the target $31.3m or 4.0% of funds contracted.

Dissemination of information to industry stakeholders and building industry capacity.

Increase in value and diversity of tangible pipeline opportunities is reflected in the above target level of commitments and deployment.

The Corporation has participated in significant marketing and communications activity, media reach, conferences, events, symposiums and industry events and made a number of submissions to industry and government inquiries.


150





The Corporation has engaged in positive stakeholder awareness and knowledge including running board meetings followed by stakeholder events in Brisbane, Adelaide, and Melbourne in addition to the usual meetings in Sydney.

2017-18 Investment in renewable energy, low emissions and energy efficiency technologies.

Funds contracted during the year > $900m to $1.1bn


Funds Deployed > $650m.

Expected carbon abatement from committed projects at ‘cost’ to the Corporation of < $0.

Financial leverage in projects financed >1:1.

Performance against portfolio benchmark return set by the government in the 2016 Investment Mandate No. 2.

Optimise portfolio returns while recognising the Corporation’s public policy purpose, and taking all reasonable steps to achieve portfolio benchmark return targets of the five–year Australian Government bond rate + 3 to + 4 per cent per annum for the core portfolio and the five–year Australian Government bond rate + 1 per cent per annum for the Clean Energy Innovation Fund portfolio.

Operating expenditure before concession and impairment < $40m or 4% of funds contracted.

Dissemination of information to industry stakeholders and building industry capacity.

Increase the value and diversity of the investment pipeline.

Significant marketing and communications activity, including media outreach and targeted participation in conferences and industry events.

Positive stakeholder awareness and knowledge.


151


• investing directly and indirectly, while also attracting private sector investment into clean energy technologies and project,; and



2018-19 and beyond As for 2017-18, other than specific measures set out below:

Investment in renewable energy, low emissions and energy efficiency technologies.

Funds contracted during the year > $1bn to $1.2bn


Funds deployed > $650m

Performance against portfolio benchmark return set by the government.

Operating expenditure before concession and impairment < $45m or 4% of funds contracted.

Purposes The Corporation was established by the Clean Energy Finance Corporation Act 2012 with the stated and legislated objective: “…to facilitate increased flows of finance into the clean energy sector.”


152







The Corporation incurs significant non-cash expenses and income which give rise to a

significant difference between the financial information presented in the budgeted

financial statements and the underlying cash impact of its operations.

Table 3.1 Comprehensive income statement (showing net cost of services) includes a

reconciliation of the impact of the non-cash income and charges.


Basis of accounting

The financial statements, included in Tables 3.1 to 3.6 have been prepared in

accordance with the requirements of the Public Governance, Performance and

Accountability Act 2013, the Public Governance, Performance and Accountability (Financial

Reporting) Rule 2015, Australian Accounting Standards issued by the Australian

Accounting Standards Board and the Department of Finance guidance for the

preparation of financial statements. Noting additional disclosure of the reconciliation

of the impact of the significant non-cash income and charges is not required by

Australian Accounting Standards.

Forward estimates are prepared on the basis of accounting standards currently in

force. Adoption of new accounting standards such as AASB16 - Leases and AASB9 –

Financial Instruments will impact the measurement and classification of certain assets,

liabilities, revenues and expenses in future periods.

The financial report has been prepared on an accrual basis and is prepared in

accordance with the historical cost convention.

Notes to the budgeted financial statements

The budget statements and estimated forward years should be read taking into

account the following matters:


153

Concession loan discount

The Corporation is in the business of making loans, some of which may be at a

discount to the prevailing market equivalent rates or terms. For each investment, the

Corporation attempts to maximise its return and provide only the level of discount

from market rates/terms that is required to ensure the project proceeds. This may

involve the Corporation taking a position that is not generally offered by other market

participants (for example, longer term fixed-rate debt or subordinated debt) at rates

that may be below those that an equivalent market participant would demand if it

were to participate in this market.

The Corporation is required to record a non-cash charge referred to as a concessional

loan discount in relation to any such loans and it is a matter of judgment as to the

market equivalent rate used to ascertain the extent of the implicit discount attached to

the loan.

Concessionality is made available on an individual transaction basis through longer

tenor or lower cost of finance or by absorbing additional risk. The Corporation sets

terms on a case by case basis, lending at the rate that is commercially reasonable and

on the least generous terms possible for the project to proceed (that is, as close to

market terms as possible).

Impairment of loans

The Corporation is required to ascertain the extent to which its portfolio of loans is

likely to be recoverable. Given the Corporation is in the business of lending and

earning a margin it takes credit risk and it is appropriate to provision for expected

credit losses. As the Corporation’s portfolio is mainly senior secured debt and secured

project finance facilities, and there have been no specific impairments identified to

date, a statistical probability of default must be used to determine the level of

appropriate provisioning. The forecast impairment charge is a provision determined as

reasonable and appropriate when looking at the risks within the Corporation’s current

loans and in particular the current environment faced by the borrowers.

Variability in forecasts

The responsible Ministers give guidance to the Board in relation to the performance of

the Corporation’s investment function in the form of an Investment Mandate issued

under subsection 64(1) of the CEFC Act. The current Investment Mandate, the Clean

Energy Finance Corporation Investment Mandate Direction 2016 (No.2), was issued on

11 January 2017 by the Hon Josh Frydenberg MP, Minister for the Environment and

Energy, and Senator the Hon Mathias Cormann, Minister for Finance. The Investment

Mandate has a direct implication on the likely rate of return that is achievable in the

portfolio, the amount of risk that the Corporation will be incurring across its portfolio

and the variability of earnings from period to period.

For example, the Clean Energy Innovation Fund will likely result in a greater

proportion of equity investments than the Corporation’s existing portfolio. Similarly,


154

the focus on emerging clean energy projects and businesses that involve technologies

that have passed beyond the research and development stages, but are not yet

established or of sufficient maturity, size or otherwise commercially ready to attract

sufficient private sector investment, will expose the Corporation to a greater risk of

loss on individual investments and is likely to result in a greater variability in returns

between reporting periods. The Australian Government is conscious of the risks

inherent in investing in earlier stage technologies and acknowledges that in practice

this will involve some short-term volatility in the Corporation’s returns, including the

possibility of losses in some years.

In each of the areas of particular notional allocation for deployment:

emerging clean energy projects and businesses,

clean energy projects that improve the productivity and liveability of cities, and

clean energy projects and businesses that support delivery of the Government’s

Reef 2050 plan,

there is likely to be greater variability of earnings and less certainty when forecasting

as:

a) it may take longer than anticipated to scale up the portfolios with new

investments,

b) the size of individual investments may be smaller than is optimal resulting in a

lower net return with higher costs per transaction, and

c) it may require a larger than forecast use of (non-cash) concessionality in order

to incentivise a change from “business as usual”.

The budget and forecasts have been prepared on the basis of the best available

estimates as well as an assumption of stability in and continuity of the policy

environment.

The private sector has been able to refinance certain of the Corporation’s investments

once they have been de-risked and the commercial sector is able to confidently invest.

Given the current low interest rate environment in particular, there have been a

number of the Corporation’s investments that, for example having completed

construction, or obtained contractual certainty or operated successfully for a period,

are then sufficiently de-risked and able to be financed by the commercial banks. This

has resulted in some of the Corporation’s most profitable loans having been given up

to the private sector.


155



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES


Suppliers 7,555 9,866 10,092 10,561 11,083


Write-down and impairment of assets 3,640 7,896 9,890 15,623 19,219

Losses from asset sales 92 - - - -

Concessional loan charges 19,549 27,800 29,000 30,500 31,500

Total expenses 53,700 75,659 83,347 95,161 103,807

LESS:

OWN-SOURCE INCOME

Own-source revenue

Interest and fees 52,796 72,326 82,153 106,318 136,667

Dividend and other equity distributions 3,263 9,003 9,461 10,310 10,610

Unwind of concessional loan discount 2,356 3,634 5,538 9,792 15,008



Net (cost of)/contribution by services 4,715 9,304 13,805 31,259 58,478

Surplus/(deficit) attributable to the Australian Government 4,715 9,304 13,805 31,259 58,478

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus (3,892) (626) (626) (627) (626)

Total other comprehensive income (3,892) (626) (626) (627) (626)

Total comprehensive income/(loss) 823 8,678 13,179 30,632 57,852

Total comprehensive income/(loss) attributable to the Australian Government 823 8,678 13,179 30,632 57,852


156


Reconciliation of the impact of significant non-cash income and charges

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ADD SIGNIFICANT NON-CASH CHARGES

Concessional loan charge 19,549 27,800 29,000 30,500 31,500

Provision for asset impairment 3,640 7,896 9,890 15,623 19,219

Total significant non-cash charges 23,189 35,696 38,890 46,123 50,719

LESS SIGNIFICANT NON-CASH REVENUE

Unwind of concessional loan charge (2,356) (3,634) (5,538) (9,792) (15,008)

Changes in asset revaluation surplus 3,892 626 626 627 626

Total non-cash revenue 1,536 (3,008) (4,912) (9,165) (14,382)

Total comprehensive income attributable to the Australian Government after eliminating significant non-cash adjustments 25,548 41,366 47,157 67,590 94,189



157


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets


Advances and loans 1,086,422 1,374,565 1,626,353 1,971,935 2,484,012

Available for sale financial assets 749,744 912,833 1,119,935 1,402,705 1,655,022

Interest and other receivables 4,300 2,331 2,417 2,417 2,147


Total financial assets 2,218,431 2,779,989 3,328,543 3,984,491 4,696,980


Property, plant and equipment 954 1,083 1,189 1,270 1,338

Intangibles 324 424 494 544 585



Total assets 2,220,271 2,782,058 3,330,788 3,986,867 4,699,465

LIABILITIES

Payables

Suppliers 1,533 1,534 1,532 1,532 1,531

Unearned income 12,227 14,421 18,912 23,175 26,632

Other payables 497 497 497 497 497

Total payables 14,257 16,452 20,941 25,204 28,660

Provisions


Provision for impairment on irrevocable undrawn commitments 528 528 528 528 528

Provision for restoration 129 129 129 129 129



Net assets 2,199,954 2,758,632 3,301,811 3,952,443 4,660,295

EQUITY*


Contributed equity 2,108,363 2,658,363 3,188,363 3,808,363 4,458,363

Reserves 3,131 2,505 1,879 1,252 626 Retained surplus (accumulated

deficit) 88,460 97,764 111,569 142,828 201,306

Total parent entity interest 2,199,954 2,758,632 3,301,811 3,952,443 4,660,295

Total equity 2,199,954 2,758,632 3,301,811 3,952,443 4,660,295


*Equity is the residual interest in assets after the deduction of liabilities.


158


Retained earnings

$'000

Asset revaluation

reserve $'000


Total equity

$'000

Opening balance as at 1 July 2017 Balance carried forward from previous period 88,460 3,131 2,108,363 2,199,954

Adjusted opening balance 88,460 3,131 2,108,363 2,199,954

Comprehensive income Other comprehensive income - (626) - (626)

Surplus/(deficit) for the period 9,304 - - 9,304

Total comprehensive income 9,304 (626) - 8,678

of which: Attributable to the Australian Government 9,304 (626) - 8,678

Transactions with owners

Contributions by owners Equity injection - - 550,000 550,000


Estimated closing balance as at 30 June 2018 97,764 2,505 2,658,363 2,758,632

Closing balance attributable to the Australian Government 97,764 2,505 2,658,363 2,758,632



159


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Interest and fees 58,413 75,296 86,224 110,324 140,318 Dividends and other equity distributions 3,244 9,003 9,460 10,310 10,610


Cash used

Employees 21,921 28,406 32,475 36,409 39,789

Suppliers 7,357 9,866 10,092 10,562 11,083

Total cash used 29,278 38,272 42,567 46,971 50,872



Cash received

Loans and advances 79,781 179,612 196,604 192,981 309,148

Sale of investments 51,713 12,622 45,605 93,230 222,265

Other investing activities 284,200 295,098 143,712 150,000 169,400


Cash used


equipment and intangibles 515 1,005 1,005 1,015 1,036

Loans and advances 524,020 643,122 475,129 572,888 873,372

Purchase of Investments 606,905 289,837 340,583 404,125 430,458

Other investing activities 248,678 150,000 149,993 150,000 150,000

Total cash used 1,380,118 1,083,964 966,710 1,128,028 1,454,866



Cash received

Contributed equity 1,000,000 550,000 530,000 620,000 650,000

Total cash received 1,000,000 550,000 530,000 620,000 650,000

Net cash from/(used by) financing activities 1,000,000 550,000 530,000 620,000 650,000

Net increase/(decrease) in cash held 67,955 (605) 2,328 1,846 (3,997)





160


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Funded internally from departmental resources 515 1,005 1,005 1,015 1,036

TOTAL 515 1,005 1,005 1,015 1,036


Total purchases 515 1,005 1,005 1,015 1,036

Total cash used to acquire assets 515 1,005 1,005 1,015 1,036



161



equipment $'000

Computer software and

intangibles $'000

Total

$'000

As at 1 July 2017 Gross book value 2,578 986 3,564

Accumulated depreciation (1,624) (662) (2,286)

Opening net book balance 954 324 1,278


or replacement assets By purchase - other 500 505 1,005

Total additions 500 505 1,005

Other movements

Depreciation/amortisation expense (371) (405) (776)

Total other movements (371) (405) (776)

As at 30 June 2018 Gross book value 3,078 1,491 4,569

Accumulated depreciation/ amortisation and impairment (1,995) (1,067) (3,062)

Closing net book balance 1,083 424 1,507


163

CLEAN ENERGY REGULATOR


PERFORMANCE

165





1.3 Budget measures .......................................................................................... 171






167




The Clean Energy Regulator is a Non-corporate Commonwealth Entity established

under the Clean Energy Regulator Act 2011. The Clean Energy Regulator is responsible

for the Outcome:

Contribute to a reduction in Australia's net greenhouse gas emissions, including

through the administration of market based mechanisms that incentivise reduction

in emissions and the promotion of additional renewable electricity generation.

The following schemes administered by the Clean Energy Regulator work together to

provide economic incentives, backed up by robust data, to reduce greenhouse gas

emissions and increase the use of renewable energy to achieve the agency’s purpose of

‘accelerating carbon abatement for Australia.’ In administering its schemes, the Clean

Energy Regulator is actively supporting the Australian Government’s commitment to

addressing climate change while maintaining energy security and affordability.

The Emissions Reduction Fund, established under the Carbon Credits

(Carbon Farming Initiative) Act 2011, provides incentives for a range of

organisations and individuals to adopt new practices and technologies to

reduce their emissions. The safeguard mechanism ensures that emissions

reductions purchased by the Government are not offset by significant

increases in emissions above business-as-usual levels elsewhere in the

economy.

The National Greenhouse and Energy Reporting Scheme, established by

the National Greenhouse and Energy Reporting Act 2007, is a single national

framework for reporting and disseminating company information about

greenhouse gas emissions, energy production, energy consumption and

other information specified under the legislation.

The Renewable Energy Target, established by the Renewable Energy

(Electricity) Act 2000, encourages the additional generation of electricity

from renewable sources, reduces emissions of greenhouse gases in the

electricity sector and ensures that renewable energy sources are

ecologically sustainable.

http://www.comlaw.gov.au/Series/C2011A00101



Clean Energy Regulator Budget Statements

168

The Australian National Registry of Emissions Units, established by the

Australian National Registry of Emissions Units Act 2011, is a secure electronic

registry system that tracks the location and ownership of units issued

under the Kyoto Protocol and the Emissions Reduction Fund.

The Clean Energy Regulator’s strategies for delivering this outcome and achieving its

purpose are to:

Invest in knowing our clients and communicating with them in a way

which meets their needs. Use client education and guidance materials to

help potential clients understand how to participate in and comply with

our schemes. Use targeted enforcements to act as a deterrent to non-

compliance. Ensure our activities assist our clients to decide whether to

participate in our schemes based on their own assessment of whether they

have adequate capacity and capability to meet the requirements and

achieve the anticipated results.

Use risk-based and continuous improvement approaches to deploy agency

resources to best effect. Maintain and enhance the skills and expertise of

our people and encourage innovation.

Build and sustain the Clean Energy Regulator’s reputation and impact

through sound stakeholder and client relationships and partnerships with

other relevant institutions and regulatory bodies. Promote the value of our

assets, the quality of our results, the strength of our capabilities and the

importance of our data.

Ensure our regulatory infrastructure is reliable, resilient and able to be

reused in response to policy change. Protect the integrity and utility of the

core elements of our schemes, including greenhouse and energy data,

contracts, units and certificates.

Further information on the Clean Energy Regulator’s objectives, annual priorities and

key performance indicators is detailed in the Clean Energy Regulator Corporate Plan

on the Regulator’s website at www.cleanenergyregulator.gov.au.

http://www.cleanenergyregulator.gov.au/


169













170

Table 1.1: Clean Energy Regulator resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Departmental

Annual appropriations - ordinary annual services (a) Prior year appropriations available (b) 18,367 16,789

Departmental appropriation (c) 70,974 69,969

Departmental capital budget (d) 1,183 1,167

Annual appropriations - other services - non-operating (e)

Prior year appropriations available (b) 1,500 -

Equity injection 150 -



Administered


Prior year appropriations available (b) 38,233 30

Outcome 1 191,011 218,662

Total administered annual appropriations 229,244 218,692

Total administered special appropriations (f) 14,184 291

Special accounts (f) Opening balance 77,388 77,388 Non-appropriation receipts 623,000 560,000

Total special account receipts 700,388 637,388

Total administered resourcing 943,816 856,371

Total resourcing for Clean Energy Regulator 1,035,990 944,296

2016-17 2017-18





(b) Excludes $6.596 million subject to administrative quarantine by Finance or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act)

(c) Excludes departmental capital budget (DCB).

(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(e) Appropriation Bill (No. 2) 2017-18.

(f) For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.


171

1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Clean Energy Regulator.


172










Note:







story.

The most recent corporate plan for the Clean Energy Regulator can be found at:

www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Corporate-

plans.


www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Annual-

Reports.

http://www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Corporate-plans

http://www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Corporate-plans


173


Outcome 1: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

Linked programs


Programs




The Department of the Environment and Energy has policy responsibility for the Emissions Reduction Fund and the Renewable Energy Target. The Clean Energy Regulator works collaboratively with the Department as the delivery agency and regulator for these schemes. The Department is responsible for energy policy and the Clean Energy Regulator works collaboratively with the Department to understand the impacts of its regulatory activity on the market.


174






Outcome 1: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Clean Energy Regulator

Administered expenses Ordinary annual services

(Appropriation Bill No. 1) (a) 191,011 218,662 214,225 228,226 247,854

Special appropriations

Public Governance,

Performance & Accountability Act 2013 2,935 - - - -

Renewable Energy (Electricity) Act 2000 262 291 330 402 442

Clean Energy Act 2011 10,987 - - - -




Expenses not requiring appropriation in the Budget year (b) 13,714 8,289 6,391 4,266 3,764





Ordinary annual services (Appropriation Bill No. 1) (a) 191,011 218,662 214,225 228,226 247,854 Special appropriations 14,184 291 330 402 442




Expenses not requiring appropriation in the Budget year (b) 13,714 8,289 6,391 4,266 3,764




175


Movement of administered funds between years (c)

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Outcome 1:

Program 1.1: Clean Energy

Regulator (88,394) (45,182) (53,487) (40,565) (18,303)

Total movement of administered funds (88,394) (45,182) (53,487) (40,565) (18,303)

2016-17 2017-18


(a) This includes funding for the Emissions Reduction Fund. Following a number of Emissions

Reduction Fund auctions and the significant volume of contracts that have been entered into, there has been a movement of funds between years to better reflect known and anticipated Emissions Reduction Fund contractual commitments across the forward estimates. This has not change the total appropriation of $2.55 billion. The Clean Energy Regulator is able to commit the full level of remaining uncontracted funds at any time.

(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, make good expenses, and audit fees.

(c) Figures displayed in brackets represent a decrease in funds.



176





Outcome 1 – Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

Program 1.1 – Effective and efficient regulation of greenhouse and energy reporting and market based schemes that contribute to a reduction in Australia’s net greenhouse gas emissions and promote investment in renewable energy.

Delivery The Clean Energy Regulator delivers Program 1.1 by:

administering our schemes including the Emissions Reduction Fund, the Renewable Energy Target and the National Greenhouse and Energy Reporting Scheme

collecting, analysing, assessing and publishing emissions and energy data, to inform government policy and the Australian public, and support Australia’s emissions and energy data needs including data and registries to meet international reporting commitments

operating the Australian National Registry of Emissions Units and the Renewable Energy Certificate Registry for market participants, and manage the Emissions and Energy Reporting System

monitoring, facilitating and enforcing compliance by its clients for the schemes it administers

issuing Australian carbon credit units to organisations and individuals for approved projects that reduce greenhouse gas emissions

conducting auctions and managing contracts

accrediting greenhouse and energy auditors to undertake audit activities under its schemes

working with other Commonwealth, state and territory law enforcement and regulatory bodies

providing education and information to current and potential scheme participants on the schemes it administers and how they work.



2016-17 Proportion of contracted abatement delivered.

Expected achievement against criterion:

The delivery of abatement contracted through the Emissions Reduction Fund results in emissions reductions and contributes to meeting Australia’s emissions reduction targets.

On track.

Against a target of: ≥ 80% of contracted abatement is delivered on time.


177

Program 1.1 – Effective and efficient regulation of greenhouse and energy reporting and market based schemes that contribute to a reduction in Australia’s net greenhouse gas emissions and promote investment in renewable energy.


Compliance levels by regulated and liable entities.

Expected achievement against criterion:

Regulated entities comply with the National Greenhouse and Energy Reporting Scheme by reporting emissions and energy data which underpins the reduction of net greenhouse gas emissions and supports Australia’s emissions and energy data needs. Liable entities support achieving the Renewable Energy Target through compliance with their obligations by surrendering renewable energy certificates, which represent the generation of renewable energy.

On track.

Against a target of: ≥ 95% of regulated entities are materially compliant with their statutory obligations.

2017-18 Proportion of contracted abatement delivered. ≥ 80% of contracted abatement is delivered on time.

Compliance levels by regulated entities. ≥ 95% of regulated entities are materially compliant with their statutory obligations.


As for 2017–18. As for 2017–18.

Purposes Accelerating carbon abatement for Australia.

(a) Performance criteria for Outcome 1 are derived from the key performance indicators identified in the Clean Energy Regulator Corporate Plan 2016–20.


178







The Clean Energy Regulator has no significant differences between the resource

information presented in the Budget Papers and the Portfolio Budget Statements.


The Clean Energy Regulator is budgeting to incur departmental expenses of $78.3 million in 2017-18.

The Clean Energy Regulator is budgeting for a break-even position in 2017-18, excluding non-appropriated expenses relating to depreciation and amortisation.

3.1.3 Movement of Funds

The Clean Energy Regulator received approval for a movement of administered funds

related to the Emissions Reduction Fund. The movement of funds was requested to

better reflect known and anticipated Emissions Reduction Fund contractual

commitments across the forward estimates. The movement of administered funds has

not changed the total appropriation of $2.55 billion or the ability of the Clean Energy

Regulator to commit remaining uncontracted funds at any time.


179



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES


Suppliers 31,567 30,156 29,544 29,393 29,277


Other expenses 54 61 61 61 61

Total expenses 84,688 78,258 76,202 74,359 74,179

LESS: OWN-SOURCE INCOME Gains

Other 465 465 465 465 465

Total gains 465 465 465 465 465

Total own-source income 465 465 465 465 465



Surplus/(deficit) (13,249) (7,824) (5,926) (3,801) (3,299)



2016-17 $'000

2017-18 $'000

2018-19 $'000

2019-20 $'000

2020-21 $'000

Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations - - - - -


Total comprehensive income/(loss) - as per the statement of comprehensive income (13,249) (7,824) (5,926) (3,801) (3,299)


(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Bill 1 revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No.1) equity appropriations. For information regarding Departmental Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.


180


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 282 282 282 282 282




Land and buildings 3,000 2,400 1,800 1,200 600

Property, plant and equipment 1,423 1,203 993 885 794

Intangibles 13,257 7,420 3,464 1,532 90

Other non-financial assets 1,130 1,130 1,130 1,130 1,130


Total assets 43,044 37,024 32,913 30,273 28,140

LIABILITIES

Payables

Suppliers 4,943 4,936 4,929 4,868 4,807

Total payables 4,943 4,936 4,929 4,868 4,807

Provisions





Net assets 24,034 17,377 12,611 9,971 7,838

EQUITY*



Reserves 7,078 7,078 7,078 7,078 7,078 Retained surplus (accumulated deficit) (68,102) (75,926) (81,852) (85,653) (88,952)


Total equity 24,034 17,377 12,611 9,971 7,838




181


Retained earnings

$'000

Asset revaluation

reserve $'000


Total equity

$'000





Transactions with owners Contributions by owners Departmental capital budget (DCB) - - 1,167 1,167






182


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Appropriations 70,494 69,260 69,156 70,290 70,415


Cash used

Employees 39,234 39,580 40,016 41,304 41,542

Suppliers 31,260 29,680 29,140 28,986 28,873

Total cash used 70,494 69,260 69,156 70,290 70,415

Net cash from/(used by) operating activities - - - - -


Cash used

Purchase of property, plant and equipment and intangibles 2,833 1,167 1,160 1,161 1,166

Total cash used 2,833 1,167 1,160 1,161 1,166



Cash received





Cash and cash equivalents at the beginning of the reporting period 282 282 282 282 282

Cash and cash equivalents at the end of the reporting period 282 282 282 282 282



183


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Capital budget - Bill 1 (DCB) 1,183 1,167 1,160 1,161 1,166

Equity injections - Bill 2 150 - - - -


Provided for:


Total items 1,333 1,167 1,160 1,161 1,166


Funded by capital appropriations (a) 1,650 - - - - Funded by capital appropriation DCB (b) 1,183 1,167 1,160 1,161 1,166

TOTAL 2,833 1,167 1,160 1,161 1,166


Total purchases 2,833 1,167 1,160 1,161 1,166



(a) Includes both current Appropriation Bill (No. 2) and prior Appropriation Act (No. 2) appropriations.

(b) Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).


184


Buildings

$'000


equipment $'000

Computer software

and intangibles

$'000

Total

$'000


Accumulated depreciation/ amortisation and impairment (6,743) (939) (44,719) (52,401)



or replacement assets By purchase - appropriation ordinary

annual services (a) - - 1,167 1,167

Total additions - - 1,167 1,167

Other movements

Depreciation/amortisation expense (600) (220) (7,004) (7,824)

Total other movements (600) (220) (7,004) (7,824)


Accumulated depreciation/ amortisation and impairment (7,343) (1,159) (51,723) (60,225)



(a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.


185


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES

Suppliers 4,079 4,108 4,148 4,219 4,259

Other expenses 201,116 214,845 210,407 224,409 244,037

Total expenses administered on behalf of Government 205,195 218,953 214,555 228,628 248,296

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other taxes 143,883 607 664 706 749

Total taxation revenue 143,883 607 664 706 749



services 12,436 12,122 12,430 12,862 13,148


Total own-source revenue administered on behalf of Government 156,319 12,729 13,094 13,568 13,897





186


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets




Total assets administered on behalf of Government 90,461 90,461 90,461 90,461 90,461

LIABILITIES

Payables

Suppliers 3,050 3,050 3,050 3,050 3,050

Other payables 111,538 111,538 111,539 111,539 111,539

Total payables 114,588 114,588 114,589 114,589 114,589

Total liabilities administered on behalf of Government 114,588 114,588 114,589 114,589 114,589

Net assets/(liabilities) (24,127) (24,127) (24,128) (24,128) (24,128)



187


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Sales of goods and rendering of services 11,732 12,332 12,632 13,064 13,148

Taxes 144,696 607 664 706 749


Cash used

Suppliers 4,341 4,399 4,479 4,621 4,259

Other 200,854 214,554 210,075 224,007 244,037

Total cash used 205,195 218,953 214,554 228,628 248,296

Net cash from/(used by) operating activities (48,767) (206,014) (201,258) (214,858) (234,399)


Cash received

Special Account 623,000 560,000 560,000 560,000 560,000


Cash used

Special Account 623,000 560,000 560,000 560,000 560,000

Total cash used 623,000 560,000 560,000 560,000 560,000

Net cash from/(used by) financing activities - - - - -

Net increase/(decrease) in cash held (48,767) (206,014) (201,258) (214,858) (234,399)

Cash and cash equivalents at beginning of reporting period 85,416 85,416 85,416 85,416 85,416

Cash from Official Public Account for:

- Appropriations 204,930 218,953 214,554 228,628 248,296

Total cash from Official Public Account 204,930 218,953 214,554 228,628 248,296

Cash to Official Public Account for: - Appropriations (156,163) (12,939) (13,296) (13,770) (13,897)

Total cash to Official Public Account (156,163) (12,939) (13,296) (13,770) (13,897)

Cash and cash equivalents at end of reporting period 85,416 85,416 85,416 85,416 85,416


189

CLIMATE CHANGE AUTHORITY


PERFORMANCE

191





1.3 Budget measures .......................................................................................... 196






193




The Climate Change Authority is a Non-corporate Commonwealth Entity and a

statutory agency operating under the Climate Change Authority Act 2011. The Authority

is responsible for the Outcome:

Provide expert advice to the Australian Government on climate change mitigation

initiatives, including through conducting regular and specifically commissioned

reviews and undertaking climate change research.

The specific functions of the Authority are set out in the Climate Change Authority

Act 2011. These include conducting statutory reviews of climate change policies,

special reviews and research about matters relating to climate change.

In 2017-18, the Authority will complete (by 31 December 2017) its second review of the

Carbon Credits (Carbon Farming Initiative) Act 2011. The Authority will also begin work

on its review of the National Greenhouse and Energy Reporting Act 2007, which is due to

be completed by 31 December 2018.

Government policy is that the Climate Change Authority will be wound up within the

life of the current Parliament.

Climate Change Authority Budget Statements

194


Table 1.1 shows the total funding from all sources available to the Authority for its

operations and to deliver services on behalf of the Government.



departmental classification for the Authority’s operations.


available) basis, whilst the Budgeted expenses by Outcome tables in Section 2 and the



195

Table 1.1: Climate Change Authority resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Departmental


Prior year appropriations available 1,000 -

Departmental appropriation 2,563 -

s 74 retained revenue receipts (b) 662 1,456



Total resourcing for Climate Change Authority 4,225 1,456

2016-17 2017-18




(a) Appropriation Bill (No. 1) 2017-18. (b) Estimated retained revenue receipts under section 74 of the Public Governance,

Performance and Accountability Act 2013.


196

1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Climate Change Authority.


197










Note:







story.

The most recent corporate plan for the Climate Change Authority can be found at:

http://climatechangeauthority.gov.au.

The most recent annual performance statement can be found in the Authority’s annual

report for 2015-16 at http://climatechangeauthority.gov.au/about-cca.

http://climatechangeauthority.gov.au/about-cca


198


Outcome 1 – Provide expert advice to the Australian Government on climate change mitigation initiatives, including through conducting regular and specifically commissioned reviews and through undertaking climate change research.

Linked programs


Programs

Program 2.1 – Reducing Australia's Greenhouse Gas Emissions



The Climate Change Authority supports the Department of the Environment and

Energy in reducing Australia’s greenhouse gas emissions by providing independent

climate change mitigation policy advice to the Government, including in relation to

the energy sector.


199






Outcome 1: Provide expert advice to the Australian Government on climate change mitigation initiatives, including through conducting regular and specifically commissioned reviews and through undertaking climate change research.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Reviewing Climate Change Mitigation Policies


Departmental appropriation 2,563 - - - -

s74 Retained revenue receipts (a) 662 1,456 - - -

Expenses not requiring appropriation in the Budget year (b) 304 9 - - -

Departmental total 3,529 1,465 - - -

Total expenses for program 1.1 3,529 1,465 - - -



Departmental appropriation 2,563 - - - -

s74 Retained revenue receipts (a) 662 1,456 - - -


in the Budget year (b) 304 9 - - -

Departmental total 3,529 1,465 - - -

Total expenses for Outcome 1 3,529 1,465 - - -

2016-17 2017-18


(a) Estimated expenses incurred in relation to receipts retained under section 74 of the Public

Governance, Performance and Accountability Act 2013. (b) Expenses not requiring appropriation in the Budget year are made up of depreciation and

amortisation expenses.


200





Outcome 1 – Provide expert advice to the Australian Government on climate change mitigation initiatives, including through conducting regular and specifically commissioned reviews and through undertaking climate change research.


The Climate Change Authority’s objective is to provide rigorous, independent and balanced advice to the Minister for the Environment and Energy, to assist the Department and the Australian Parliament with climate change policy, in order to improve the quality of life for all Australians.

Delivery The Authority will conduct regular legislative reviews, and undertake climate change research by:

performing desktop and in-depth research and analysis

commissioning external resources to do analytic work where needed

conducting meaningful and transparent consultation with experts and stakeholders including business, industry, environment and other community groups

monitoring developments in climate change policy by reviewing publicly available resources and building networks with expert, local and international organisations.

The Authority secretariat will assist Authority decision making by:

providing briefing, draft reports and other supporting documents that are fit for purpose and of a high quality.



2016–17 Reviews and reports from research conducted by the Authority are high quality, well-received by stakeholders and used in public policy forums and discussions.

Research reports on recommendations on further work resulting from the Special Review into climate change policies and the second review of the Carbon Farming Initiative Act 2011 are of high quality, well-received by stakeholders and used in public policy forums and discussions.

Forecast: On track

Public consultation processes are transparent, accessible and are highly regarded by stakeholders. The Authority’s decision-making in conducting and completing reviews is independent and is perceived as independent by stakeholders.

Stakeholders express the view that consultation has been meaningful and transparent.

Forecast: On track

Economic modelling, submissions and review reports are accessible on the Authority’s website.

Forecast: On track


201


The Climate Change Authority’s objective is to provide rigorous, independent and balanced advice to the Minister for the Environment and Energy, to assist the Department and the Australian Parliament with climate change policy, in order to improve the quality of life for all Australians.


2017–18 Legislative reviews and research reports conducted by the Authority are timely, high quality, well-received by stakeholders, and inform or influence public policy forums and discussions.

Statutory deadlines for legislative reviews are met.

Stakeholders express the view that reports are of high quality and influential.

Public consultation processes are transparent, accessible and facilitate meaningful engagement with stakeholders.

Stakeholders express the view that consultation has been meaningful and transparent.

Issues papers, public submissions research reports and review reports are accessible on the Authority’s website.

The Authority secretariat’s work supports effective decision making by the Authority.

Authority members express satisfaction with the work of the secretariat.


As for 2017–18 As for 2017–18

Purposes (a) The Climate Change Authority’s objective is to provide rigorous, independent and balanced advice to the Minister for the Environment and Energy and the Australian Parliament on climate change policy, in order to improve the quality of life for all Australians.

The Authority will do this by conducting regular and specifically commissioned reviews, and undertaking climate change research published as issues papers, research and review reports.

(a) Refers to updated purposes that will be reflected in the 2017-18 Corporate Plan.


202







The financial statements reflect the Climate Change Authority’s operations to

30 June 2018, which include research reports on further work recommended by the

Climate Change Authority’s special review into climate goals and policies, and initial

work on the Carbon Farming Initiative legislative review.


203



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES

Employee benefits 2,781 977 - - -

Suppliers 444 479 - - -

Depreciation and amortisation 304 9 - - -

Total expenses 3,529 1,465 - - -

LESS:

OWN-SOURCE INCOME

Own-source revenue

Other 662 1,456 - - -

Total own-source revenue 662 1,456 - - -

Total own-source income 662 1,456 - - -

Net cost of services (2,867) (9) - - -

Revenue from Government 2,563 - - - -

Surplus/(deficit) attributable to the Australian Government (304) (9) - - -

Total comprehensive income/(loss) (304) (9) - - -

Total comprehensive income/(loss) attributable to the Australian Government (304) (9) - - -


2016-17 $'000

2017-18 $'000

2018-19 $'000

2019-20 $'000

2020-21 $'000

Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations - - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 304 9 - - -

Total comprehensive income/(loss) - as per the statement of comprehensive income (304) (9) - - -


(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity.


204


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 271 - - - -

Trade and other receivables 1,022 - - - -

Total financial assets 1,293 - - - -


Land and buildings 9 - - - -

Total non-financial assets 9 - - - -

Total assets 1,302 - - - -

LIABILITIES

Payables

Suppliers 125 - - - -

Total payables 125 - - - -

Provisions

Employee provisions 521 - - - -

Other provisions 120 - - - -

Total provisions 641 - - - -

Total liabilities 766 - - - -

Net assets 536 - - - -

EQUITY*


Retained surplus (accumulated deficit) 536 - - - -

Total parent entity interest 536 - - - -

Total equity 536 - - - -




205


Retained earnings

$'000

Total equity

$'000

Opening balance as at 1 July 2017 Balance carried forward from previous period 536 536

Adjusted opening balance 536 536

Comprehensive income Surplus/(deficit) for the period (9) (9)

Total comprehensive income (9) (9)

of which:

Attributable to the Australian Government (9) (9)

Transactions with owners

Distributions to owners Returns of capital: Distribution of equity (527) (527)

Sub-total transactions with owners (527) (527)

Estimated closing balance as at 30 June 2018 - -

Closing balance attributable to the Australian Government - -



206


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Appropriations 2,563 1,000 - - -

Net GST received - 22 - - -

Other 662 1,456 - - -

Total cash received 3,225 2,478 - - -

Cash used

Employees 2,781 1,498 - - -

Suppliers 444 604 - - -

Cash transferred to OPA - 647 - - -

Total cash used 3,225 2,749 - - -

Net cash used by operating activities - (271) - - -

Net increase/(decrease) in cash held - (271) - - -


beginning of the reporting period 271 271 - - -


end of the reporting period 271 - - - -



207


Buildings

$'000


equipment $'000

Computer software

$'000

Total

$'000

As at 1 July 2017

Gross book value 1,224 55 113 1,392

Accumulated depreciation/

amortisation and impairment (1,215) (55) (113) (1,383)

Opening net book balance 9 - - 9

Other movements

Depreciation/amortisation expense (9) - - (9)

Total other movements (9) - - (9)

As at 30 June 2018

Gross book value 1,224 55 113 1,392

Accumulated depreciation/

amortisation and impairment (1,224) (55) (113) (1,392)

Closing net book balance - - - -


209

DIRECTOR OF NATIONAL PARKS


PERFORMANCE

211





1.3 Budget measures .......................................................................................... 217






213




The Director of National Parks is a Corporate Commonwealth Entity, operating under

the Environment Protection and Biodiversity Conservation Act 1999 to administer and

manage Commonwealth reserves (national parks, botanic gardens, marine and

terrestrial reserves). These reserves include:

Booderee, Kakadu and Uluru-Kata Tjuta National Parks, which are each jointly

managed with their Aboriginal Traditional Owners. Kakadu and Uluru-Kata Tjuta

National Parks are World Heritage listed

national parks in the Australian territories of Norfolk, Christmas and Cocos

(Keeling) Islands

the Australian National Botanic Gardens, which is a major national institution for

the study of Australian plants

the 59 marine reserves in the South East, South West, North West, North and

Temperate East marine regions and the Coral Sea which comprise the

Commonwealth waters component of the National Representative System of

Marine Protected Areas.

The Director of National Parks’ goals and objectives are to deliver:

resilient places and ecosystems: to protect and conserve the natural and cultural

values of Commonwealth reserves

multiple benefits to traditional owners: to support the aspirations of traditional

owners in managing their land and sea country

amazing destinations: to offer world class natural and cultural experiences,

enhancing Australia’s visitor economy.

To deliver these priorities within the Government’s fiscal strategy, the Director of

National Parks will continue to look to diversify and increase external revenue and

partnerships, seek further improvements in the efficient use of our resources and

continue to invest in the skills and capabilities of our staff.

Director of National Parks Budget Statements

214

Diagram 1: Location of Commonwealth Parks and Reserves


215













216

Table 1.1: Director of National Parks resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual $'000

2017-18 estimate

$'000


Funds from Government Annual appropriations - other services (a)

Equity injection – transferred by Portfolio Department 619 376

Total annual appropriations 619 376

Amounts received from related entities Amounts from Portfolio Department (b) 42,829 46,548

Total amounts received from related entities 42,829 46,548

Total funds from Government 43,448 46,924

Funds from other sources Interest 1,291 1,200 Sale of goods and services 25,840 23,252 Other 653 926


Total net resourcing for Director of National Parks 117,796 118,866

2016-17 2017-18





(b) Funding provided by the Portfolio Department that is not specified within the Annual Appropriation Bills as a payment to the Director of National Parks.


217

1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Director of National Parks.


218

Figure 3: Changes to the outcome and program structures since the last portfolio statement

New Outcome 1

Management of Commonwealth reserves as outstanding natural places that enhance Australia's well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

Description of change:

Previously reported in 2016-17 Portfolio Additional Estimates Statements as Outcome 1.

Old statement:

Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.


219










Note:







story.

The most recent corporate plan for the Director of National Parks can be found at:

http://www.environment.gov.au/resource/corporate-plan-2016-20-director-national-

parks.


http://www.environment.gov.au/resource/annual-report-2015-16-director-national-

parks.


220


Outcome 1: Management of Commonwealth reserves as outstanding natural places that enhance Australia’s well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

Linked programs


Programs


Program 1.2 – Environmental Information and Research



The Department of the Environment and Energy and Director of National Parks work together through engagement on policy direction, heritage management and species conservation within Commonwealth-managed marine and terrestrial reserves.


Programs

Program 1.1 – Improving the Outlook for the Great Barrier Reef


The Coral Sea Commonwealth Marine Reserve managed by the Director of National Parks adjoins the Great Barrier Reef Marine Park and provides complementary protection for ecosystems and biodiversity in the region.


221






Outcome 1: Management of Commonwealth reserves as outstanding natural places that enhance Australia's well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Parks and Reserves



Expenses not requiring appropriation in the Budget year (a)

5,269 4,262 3,067 2,698 1,071

Revenues from other independent sources

31,918 29,498 28,599 28,722 28,743





Expenses not requiring appropriation in the Budget year (a)

5,269 4,262 3,067 2,698 1,071

Revenues from other independent sources

31,918 29,498 28,599 28,722 28,743


2016-17 2017-18


(a) Expenses not requiring appropriation in the Budget year comprise depreciation and amortisation

expenses.


222





Outcome 1 – Management of Commonwealth reserves as outstanding natural places that enhance Australia’s well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

Program 1.1 – Parks and Reserves: healthy and resilient parks, gardens and marine reserves, protecting nature and culture and valued by the community now and into the future.

Delivery With traditional owners and stakeholders, develop and implement management plans for Commonwealth reserves.



2016–17 Populations of threatened and significant species are increasing.

On track - forecast increase in populations of prioritised threatened and significant species.

Populations of priority invasive species are reduced.

On track - forecast decrease in size of populations of prioritised invasive species.

Increase in numbers of Indigenous staff and/or contractors directly or indirectly providing park services.

On track - forecast increase in numbers of Indigenous staff, with value of services provided by Indigenous providers steady.

Maintain or improve the level of visitor satisfaction and number of visitors.

On track - forecast to maintain high levels of visitor satisfaction.

Forecast to exceed 5 per cent increase in visitor numbers.

Enhance level of active management of marine reserves and engagement of users and stakeholders.

Not achieved - new management plans for Commonwealth marine reserves forecast to be in effect and implemented in the next financial year.

Increase the knowledge base for long term adaptive management of the marine reserves.

On track - forecast increase in the number of marine reserves long-term monitoring sites.

2017–18 Populations of threatened and significant species are increasing.

Increase in populations of prioritised threatened and significant species.

Populations of priority invasive species are reduced.

Decrease in size of populations of prioritised invasive species.


223

Program 1.1 – Parks and Reserves: healthy and resilient parks, gardens and marine reserves, protecting nature and culture and valued by the community now and into the future.


Increase in numbers of Indigenous staff and/or contractors directly or indirectly providing park services.

Increase in numbers of Indigenous staff.

Increase in value of services provided by Indigenous providers.

Maintain or improve the level of visitor satisfaction and number of visitors.

Maintain or improve levels of visitor satisfaction.

5 per cent increase in visitor numbers.

Enhance level of active management of marine reserves and engagement of users and stakeholders.

New management plans for Commonwealth marine reserves forecast to be in effect and implemented.

Increase the knowledge base for long term adaptive management of the marine reserves.

Increase in the number of marine reserves long-term monitoring sites.


As for 2017–18 As for 2017–18

Purposes (a) Resilient places and ecosystems: to protect and conserve the natural and

cultural values of Commonwealth reserves

Multiple benefits to traditional owners: to support the aspirations of traditional

owners in managing their land and sea country

Amazing destinations: to offer world class natural and cultural experiences,

enhancing Australia’s visitor economy



224







Estimates for the Director of National Parks have increased primarily as a result of the

measure supporting the Commonwealth Marine Reserves network.

Changes over the forward estimates for sale of goods and services represent

movements in delivery of Memorandum of Understanding activities, in particular and

Bush Blitz II reducing its program expeditions in 2017-18.

Other gains of $4.12 million relate to the estimate of the cost of corporate services

provided by the Department of the Environment and Energy free of charge under a

Service Delivery Agreement with the Director of National Parks.

The Director of National Parks received approval from the Minister for Finance for an

operating loss of $1.1 million in 2020-21 for depreciation of the entity’s asset base.


225


Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2016-17


2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES


Suppliers 31,176 33,974 35,236 35,273 34,287

Grants 54 - - - -


Other expenses - 1 - 1 -

Total expenses 80,016 80,308 79,063 77,222 73,943

LESS:

OWN-SOURCE INCOME

Own-source revenue


Interest 1,291 1,200 1,200 1,200 1,200

Other 653 926 903 912 916


Gains

Sale of assets 14 - - - -

Other 4,120 4,120 4,120 4,120 4,120

Total gains 4,134 4,120 4,120 4,120 4,120




Surplus/(deficit) attributable to the Australian Government (5,269) (4,262) (3,067) (2,698) (1,071)


Total comprehensive income/(loss) attributable to the Australian Government (5,269) (4,262) (3,067) (2,698) (1,071)



226


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets




Other financial assets 211 211 211 211 211





Intangibles 815 815 815 815 815



Total assets 261,034 257,148 254,262 251,919 250,848

LIABILITIES

Payables

Suppliers 2,796 2,796 2,796 2,796 2,796

Other payables 4,334 4,334 4,334 4,334 4,334

Total payables 7,130 7,130 7,130 7,130 7,130

Provisions


Other provisions 31 31 31 31 31



Net assets 245,440 241,554 238,668 236,325 235,254

EQUITY*



Reserves 172,562 172,562 172,562 172,562 172,562



Total equity 245,440 241,554 238,668 236,325 235,254




227


Retained earnings

$'000

Asset revaluation

reserve $'000


Total equity

$'000


Balance carried forward from previous period 35,814 172,562 37,064 245,440

Adjusted opening balance 35,814 172,562 37,064 245,440



of which: Attributable to the Australian Government (4,262) - - (4,262)

Transactions with owners Contributions by owners Equity injection - transferred by

Portfolio Department - - 376 376

Sub-total transactions with owners - - 376 376

Estimated closing balance as at 30 June 2018 31,552 172,562 37,440 241,554

Closing balance attributable to the Australian Government 31,552 172,562 37,440 241,554



228


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Receipts from Government 43,085 46,548 47,396 45,802 44,129 Sale of goods and rendering of services 25,840 23,252 22,376 22,490 22,507 Interest 1,291 1,200 1,200 1,200 1,200

Other 653 926 903 912 916


Cash used

Employees 35,058 33,356 32,044 30,535 29,870

Suppliers 27,057 29,854 31,116 31,153 30,167

Other 53 1 - 1 -

Total cash used 62,168 63,211 63,160 61,689 60,037



Cash received

Proceeds from sales of property, plant and equipment 14 - - - -

Total cash received 14 - - - -

Cash used



Total cash used 9,334 9,091 8,896 9,070 8,715



Cash received

Equity injection - transferred by Portfolio Department 619 376 181 355 -

Total cash received 619 376 181 355 -

Net cash from/(used by) financing activities 619 376 181 355 -






229


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Equity injection - transferred by

Portfolio Department 619 376 181 355 -

Total new capital appropriations 619 376 181 355 -

Provided for:

Purchase of non-financial assets 619 376 181 355 -

Total items 619 376 181 355 -


Funded by capital appropriations (a) 619 376 181 355 -

Funded internally from departmental resources (b) 8,715 8,715 8,715 8,715 8,715

TOTAL 9,334 9,091 8,896 9,070 8,715


(a) Includes current Appropriation Bill (No.2) appropriations. (b) Includes the following sources of funding:

- current Appropriation Bill (No. 1) and prior year Act (No. 1) appropriations; - donations and contributions; - internally developed assets; - proceeds from the sale of assets.


230


Land

$'000

Buildings

$'000


equipment

$'000

Computer software

and intangibles

$'000

Total

$'000

As at 1 July 2017 Gross book value 5,690 71,193 178,626 1,094 256,603

Accumulated depreciation/ amortisation and impairment - (11,449) (32,695) (279) (44,423)

Opening net book balance 5,690 59,744 145,931 815 212,180


or replacement assets By purchase - appropriation equity (a) - - 376 - 376

By purchase - appropriation ordinary annual services (b) - 2,500 6,215 - 8,715

Total additions - 2,500 6,591 - 9,091

Other movements

Depreciation/amortisation expense - (4,120) (8,857) - (12,977)

Total other movements - (4,120) (8,857) - (12,977)

As at 30 June 2018 Gross book value 5,690 73,693 185,217 1,094 265,694

Accumulated depreciation/ amortisation and impairment - (15,569) (41,552) (279) (57,400)

Closing net book balance 5,690 58,124 143,665 815 208,294


(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2017-18.

(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

231

GREAT BARRIER REEF MARINE

PARK AUTHORITY


PERFORMANCE

233

GREAT BARRIER REEF MARINE PARK AUTHORITY




1.3 Budget measures .......................................................................................... 240






235

GREAT BARRIER REEF MARINE PARK AUTHORITY



The Great Barrier Reef Marine Park Authority is Australia’s principal adviser for the

Great Barrier Reef, one of the world’s most valued natural wonders renowned for its

stunning beauty and diversity of marine life and habitats. The Great Barrier Reef

Marine Park Authority exists to protect the Great Barrier Reef Marine Park and the

World Heritage Area for current and future generations. This legislative responsibility

is established under the Great Barrier Reef Marine Park Act 1975.

The Great Barrier Reef Marine Park Act 1975 requires the Great Barrier Reef Marine Park

Authority to ensure the long-term protection, ecologically sustainable use,

understanding and enjoyment of the Great Barrier Reef for all Australians and the

international community through the care and development of the Marine Park.

To achieve this primary outcome the Great Barrier Reef Marine Park Authority

delivers its work under the Improving the Outlook of the Great Barrier Reef Program

with an emphasis on protecting, managing and restoring the Great Barrier Reef’s

ecosystem health, biodiversity, and heritage values. The Authority strives to achieve

this by:

Providing expert knowledge to influence and advise key decision makers on

managing, reducing or avoiding significant threats to the Reef

Regulating and ensuring Marine Park user compliance

Educating and fostering stewardship to enhance protection of the Reef

Enhancing reef resilience through continuous improvement and new initiatives

across all aspects of management.

The Great Barrier Reef has experienced two significant extreme weather events during

2017 — its second consecutive year of mass coral bleaching and the category 4 tropical

cyclone Debbie which crossed reefs in the Whitsundays region of the Marine Park.

The Great Barrier Reef Marine Park Authority is working with partners and

stakeholders to identify and implement actions to increase Reef resilience in response

to these major environmental disturbances, while continuing to focus on its essential

foundational management tools.

Great Barrier Reef Marine Park Authority Budget Statements

236

These tools include the Field Management Program, which the Authority implements

in close collaboration with the Queensland Government, a partnership which is

critically important for effectively managing such a large, diverse and complex marine

World Heritage Area.

These joint arrangements — which operate across the Commonwealth Marine Park

and the Queensland Great Barrier Reef Coast Marine Park — also underpin the

operation of a Reef-wide zoning plan and permitting system which regulates where

uses may occur, the types of activities allowed and the conditions under which these

may proceed.

Under the Field Management Program, the Great Barrier Reef Marine Park Authority

is purchasing a second state-of-the art patrol vessel to boost field capacity in the

southern region of the Great Barrier Reef, enabling improved policing of the Marine

Park, particularly against illegal fishing.

In carrying out its work, the Great Barrier Reef Marine Park Authority maintains

strong relationships with Traditional Owners who are the traditional custodians of the

Great Barrier Reef with connections to the area dating back more than 60,000 years.

The Authority also works with a wide range of agencies, Reef users, stakeholders, and

community members with an interest in the long-term protection, ecologically

sustainable use, understanding and enjoyment of the Great Barrier Reef.

The Great Barrier Reef Marine Park Authority continues to lead over 70 actions in the

Reef 2050 Plan for the Australian Government, including the implementation of the

Reef 2050 Integrated Monitoring and Reporting Program. The program will ensure the

Plan’s effectiveness is monitored in a scientifically sound and publicly transparent

manner. Implementation of this initiative will inform the development of the 2019

Great Barrier Reef Outlook Report.

The Great Barrier Reef Marine Park Authority is continuing to work in conjunction

with the Reef and Rainforest Research Centre and the Association of Marine Park

Tourism Operators, with funding from the $211.8 million Reef Trust, to protect coral

cover at key tourism and high value conservation sites by culling the crown-of-thorns

starfish. This critical work is part of the Authority’s work to reduce cumulative

impacts and boost Reef resilience.

The Australian Government’s Reef Program is aimed at addressing the threats of

declining water quality to the Great Barrier Reef World Heritage Area with the aim of

meeting the Authority’s Reef Water Quality Guidelines. The Reef Program also aims to

enhance the Reef’s resilience to climate change by minimising other pressures on the

Reef. The Authority assists in delivering components of the Reef Program, including:

Marine monitoring and reporting of the long-term health of the Reef


237

Land and sea country partnerships to strengthen communication between local

communities, managers and Reef stakeholders and to build a better understanding

of Traditional Owner issues relevant to managing the Marine Park, including the

sustainable use of traditional marine resources

Stewardship programs including the highly successful Reef Guardian initiative to

improve community, local government and industry capacity and facilitate the

adoption of environmentally sustainable best practices to achieve environmental

outcomes for the Great Barrier Reef.

The Great Barrier Reef Marine Park Authority is updating infrastructure and exhibits

associated with its award-winning national education centre for the Great Barrier Reef,

Reef HQ Aquarium, in Townsville. The aquarium fosters community and stakeholder

participation in actions to address threats to the Reef by ensuring they have a clear

understanding of the value of the Great Barrier Reef, the threats to its sustainable

future and the actions they can take to protect it.

Climate change remains the most significant threat to the Great Barrier Reef. Global

action on climate change, including effective implementation of the Paris Agreement to

reduce greenhouse gas emissions, is essential to avoid extreme weather events, such as

mass coral bleaching and severe tropical cyclones, becoming a more frequent

occurrence.

Other key issues for the Reef are declining water quality, commercial and recreational

fishing pressures, crown-of-thorns starfish outbreaks and coastal development.

Our challenge is to maintain the Great Barrier Reef Marine Park Authority’s role as

best practice marine park managers while also ensuring stakeholders are aware of the

impacts the cumulative pressures from outside of the Authority’s jurisdiction are

having on the Great Barrier Reef’s long-term health.

The impact is not just on the Reef ecosystem, it affects the cultural values of Traditional

Owners, tourism and fishing industries which rely on a healthy Reef, the communities

along the coast who have strong connections with the Reef, as well as the broader

Australian and international community who consider it to be ‘our Reef’.


238













239

Table 1.1: Great Barrier Reef Marine Park Authority resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Departmental


Prior year appropriations available 9,969 7,969

Departmental appropriation (b) 20,031 25,019

s 74 retained revenue receipts (c) 20,296 25,825

Departmental capital budget (d) 772 762

Annual appropriations - other services - non-operating (e)

Equity injection 467 1,016


Total departmental special appropriations (f) 11,000 11,000

Special accounts (f)

Opening balance 1,224 36,224

Appropriation receipts (g) 9,682 13,177

Non-appropriation receipts 43,731 10,000

Total special accounts 54,637 59,401

less departmental appropriations drawn from annual/special appropriations and credited to special accounts (9,682) (13,177)


Total resourcing for the Great Barrier Reef Marine Park Authority 107,490 117,815

2016-17 2017-18





(b) Excludes departmental capital budget (DCB).

(c) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(e) Appropriation Bill (No. 2) 2017-18.

(f) Excludes 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM), Services for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and Trust Moneys accounts (SOETM)). For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

(g) Amounts credited to the special account(s) from Great Barrier Reef Marine Park Authority annual and special appropriations.


240

1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Great Barrier Reef Marine Park

Authority.


241










Note:







story.

The most recent corporate plan for the Great Barrier Reef Marine Park Authority can

be found at: http://elibrary.gbrmpa.gov.au/jspui/handle/11017/3034


http://elibrary.gbrmpa.gov.au/jspui/handle/11017/3059





242


Outcome 1: The long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community through the care and development of the Marine Park.

Linked programs


Programs





Program 2.2 – Adapting to Climate Change


The Department of the Environment and Energy and the Great Barrier Reef Marine

Park Authority work together on heritage management, environment health, species

conservation and fisheries management as well as joint implementation of the Reef

2050 Plan to protect and conserve the Great Barrier Reef. Climate Change is the most

significant threat to the Great Barrier Reef. The Department of the Environment and

Energy is responsible for policy to support an effective global response to climate

change and for adapting to climate change.


Programs



The Clean Energy Finance Corporation is providing a $1 billion investment over 10 years for the Reef Funding Program. The Program will deliver financial investment in clean energy projects delivered in the Great Barrier Reef catchment region. The Program is targeting clean energy projects and businesses in the region that support delivery of the Government’s Reef 2050 plan.


243


Programs

Program 1.1 – Parks and Reserves: healthy and resilient parks, gardens and marine reserves, protecting nature and culture and valued by the community now and into the future


The Coral Sea Commonwealth Marine Reserve managed by the Director of National Parks adjoins the Great Barrier Reef Marine Park and provides complementary protection for ecosystems and biodiversity in the region.


244






Outcome 1: The long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community, through the care and development of the Marine Park.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Improving the Outlook for the Great Barrier Reef



s 74 Retained revenue receipts (a) 19,776 19,425 8,800 5,622 4,927 Special appropriations

Great Barrier Reef Marine Park Act 1975 11,000 11,000 11,000 11,000 11,000

Special accounts

Great Barrier Reef Field

Management Special Account 16,784 16,784 16,784 16,784 16,784 Expenses not requiring appropriation in the Budget year (b) 3,955 1,955 1,955 1,955 1,955




Departmental expenses Departmental appropriation 11,659 16,646 20,806 22,509 22,741 s74 Retained revenue receipts (a) 19,776 19,425 8,800 5,622 4,927 Special appropriations 11,000 11,000 11,000 11,000 11,000 Special accounts 16,784 16,784 16,784 16,784 16,784 Expenses not requiring appropriation in the Budget year (b) 3,955 1,955 1,955 1,955 1,955



2016-17 2017-18

Average staffing level (number) 210 210 (a) Estimated expenses incurred in relation to receipts retained under section 74 of the Public

Governance, Performance and Accountability Act 2013. (b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

amortisation expenses and audit fees. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


245





Outcome 1 – The long-term protection, ecologically sustainable use,

understanding and enjoyment of the Great Barrier Reef for all Australians and

the international community through the care and development of the Marine

Park.


This program contributes to the outcome through the implementation of actions which aim to protect, manage and restore the Great Barrier Reef’s ecosystem health, biodiversity and heritage values — ensuring use of the Marine Park is ecologically sustainable and benefits current and future generations.


Providing expert knowledge to influence and advise key decision makers on managing, reducing or avoiding significant threats to the Reef

Regulating, and ensuring Marine Park user compliance

Educating and fostering stewardship to enhance protection of the Reef

Enhancing reef resilience through continuous improvement and new initiatives across all aspects of management.



2016-17 Authority decisions and actions are informed by the best available knowledge and information, and contribute to the attainment of outcomes for the Reef’s values.

On track

75% of the Authority’s science needs to inform management decisions and actions are being addressed.

On track

The impacts of human activity on the Great Barrier Reef are reduced through effective environmental regulation.

On track

Action taken on 85% of reported permissions non-compliance related offences.

On track

740 dedicated compliance vessel patrol days funded or partially funded by the Field Management Program are undertaken in the World Heritage Area.

On track

23% of the Marine Park is managed in accordance with an accredited Traditional Use of Marine Resources Agreement or an Indigenous Land Use Agreement.

On track


246




Environmental outcomes for the Great Barrier Reef are improved through the communication and adoption of sustainable best practices.

On track

Increase in the number of participants within Great Barrier Reef Marine Park Authority stewardship programs (e.g. High Standard Tourism, Eye on the Reef, Reef Guardians, Sea Country Indigenous Partnerships).

On track

55% of visitors to the Great Barrier Reef use tourism operators which have been accredited as ‘high standard operators’.

On track

70% of visitors to Reef HQ Aquarium participate in talks and tours that deliver key messages about risks to the Great Barrier Reef.

On track

2017-18 Key threats to the Great Barrier Reef are identified, and either addressed or, where external, acknowledged through the provision of authoritative and trusted advice.

Entities and peak bodies we work with acknowledge the:

quality of the Authority’s advice

professionalism and expertise of Authority staff.

100% of very high or high risks to the Reef are identified in or have effective actions against them identified in the Reef 2050 Plan or other plans and strategies.

The impacts of human activity on the Great Barrier Reef are reduced through effective and efficient regulation and compliance.

Whitsundays Plan of Management finalised and in force.

New permit guidelines finalised and existing ones reviewed to improve transparency and consistency in permit decisions.

Spatial planning tools identified and priority sites determined for improved protection.


247




24% of the Marine Park coastline is managed in accordance with an accredited Traditional Use of Marine Resources Agreement or Indigenous Land Use Agreement.

740 compliance patrol days funded through the joint field management program.

New compliance tools are identified, trialled and reviewed for effectiveness to address key risks.

Improved awareness and adoption of sustainable best practices through education and stewardship programs.

Participants of stewardship and education programs, including ReefHQ programs, report:

improved awareness of the Great Barrier Reef’s values and threats

changed practice and behaviour to protect and enhance the Reef’s values.

Enhanced coral reef resilience through identifying and working with partners to implement adaptive management intervention.

Develop and release a Position Statement on potential interventions to enhance Reef resilience.

Management intervention options to support resilience are identified and prioritised.

A number of new interventions that are prioritised progress to piloting and evaluation.

2018-19 and beyond As for 2017-18

As for 2017-18 with the exception of the Whitsundays Plan of Management and Position Statement on potential interventions targets identified above.

Purposes (a) Our Purpose is to ensure the long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community through the care and development of the Marine Park.



248







There are no differences between the resource information presented in the Budget

Papers and the Portfolio Budget Statements.

3.1.2 Analysis of budgeted financial statements

Changes in appropriation from 2016-17 to 2017-18 are the result of the funding

received at MYEFO in 2016-17.

The operating loss in 2016-17 reflects additional legal costs and depreciation expenses.


249



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES


Suppliers 26,061 29,902 21,954 21,232 19,836

Grants 1,110 210 10 10 10

Depreciation and amortisation 1,900 1,900 1,900 1,900 1,900 Payments to Queensland Government for Field Management Program 12,341 12,341 12,341 12,341 12,341

Total expenses 63,174 65,810 59,345 57,870 57,407

LESS:

OWN-SOURCE INCOME

Own-source revenue

Permit Assessment Fees 340 340 340 340 340

Reef HQ Aquarium 2,630 2,630 2,630 2,630 2,630

Grants received from Government 17,116 16,965 5,820 2,642 1,947 Receipts from Queensland Government for Field Management Program 8,372 8,372 8,372 8,372 8,372

Other 250 6,450 50 50 50


Gains

Other 55 55 55 55 55

Total gains 55 55 55 55 55




Surplus/(deficit) attributable to the Australian Government (3,380) 5,020 (1,900) (1,900) (1,900)

Total comprehensive income/(loss) (3,380) 5,020 (1,900) (1,900) (1,900)

Total comprehensive income/(loss) attributable to the Australian Government (3,380) 5,020 (1,900) (1,900) (1,900)


250



2016-17 $'000

2017-18 $'000

2018-19 $'000

2019-20 $'000

2020-21 $'000

Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations (1,480) 6,920 - - -


Total comprehensive income/(loss) - as per the statement of comprehensive income (3,380) 5,020 (1,900) (1,900) (1,900)


(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity appropriations. For information regarding Department Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.


251

Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2016-17


2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 489 489 489 489 489 Closing balance of Field Management Special Account 36,224 36,224 36,224 36,224 36,224

Trade and other receivables 60 60 60 60 60

Appropriation receivable 7,969 14,369 14,369 14,369 14,369

GST receivable 353 353 353 353 353

Other financial assets 21 21 21 21 21





Intangibles 2,258 2,148 1,838 1,488 1,168

Inventories 73 73 73 73 73



Total assets 66,486 73,284 73,462 73,319 72,946

LIABILITIES

Payables

Suppliers 4,451 4,451 4,451 4,451 4,451

Other payables 258 258 258 258 258

Total payables 4,709 4,709 4,709 4,709 4,709

Provisions


Provision for remediation of Douglas Shoal (a) 35,000 35,000 35,000 35,000 35,000



Net assets 20,644 27,442 27,620 27,477 27,104

EQUITY*



Reserves 13,168 13,168 13,168 13,168 13,168 Retained surplus (accumulated deficit) (16,908) (11,888) (13,788) (15,688) (17,588)


Total equity 20,644 27,442 27,620 27,477 27,104



(a) Settlement for remediation of Douglas Shoal from Shen Neng 1 ship grounding in 2010. A plan of expenditure of the settlement funds over future years is in preparation. Held as a Provision under AASB137.


252


Retained earnings

$'000

Asset revaluation

reserve $'000


Total equity

$'000


Balance carried forward from previous period (16,908) 13,168 24,384 20,644


Comprehensive income Surplus/(deficit) for the period 5,020 - - 5,020

Total comprehensive income 5,020 - - 5,020

of which:

Attributable to the Australian Government 5,020 - - 5,020

Transactions with owners Contributions by owners Equity injection - Appropriation - - 1,016 1,016

Departmental capital budget (DCB) - - 762 762






253


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Appropriations 33,031 30,138 40,178 41,881 42,113

Receipts from Government 17,116 16,445 5,820 2,642 1,947

Reef HQ aquarium revenue 2,630 2,630 2,630 2,630 2,630

Permit assessment fees 340 340 340 340 340 Receipts from Queensland Government for Field Management Program 8,372 8,372 8,372 8,372 8,372

GST received 120 120 100 100 100

Litigation settlement to Field Management Special Account 35,000 - - - -

Other 370 6,570 50 50 50


Cash used

Employees 21,467 21,162 23,140 22,387 23,320

Suppliers 24,626 22,067 20,999 20,277 18,881

Payments to Queensland Government for Field Management Program 12,341 12,341 12,341 12,341 12,341

GST paid 1,620 1,620 1,000 1,000 1,000

Transfer to OPA - 6,400 - - -

Grants 1,110 210 10 10 10

Other 295 295 - - -

Total cash used 61,459 64,095 57,490 56,015 55,552

Net cash from/(used by) operating activities 35,520 520 - - -


Cash used

Purchase of property, plant and equipment and intangibles 1,759 2,298 2,078 1,757 1,527

Total cash used 1,759 2,298 2,078 1,757 1,527



Cash received




Net increase/(decrease) in cash held 35,000 - - - -

Cash and cash equivalents at the beginning of the reporting period 489 35,489 35,489 35,489 35,489




254


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Capital budget - Bill 1 (DCB) 772 762 757 757 762

Equity injections - Bill 2 467 1,016 1,321 1,000 765


Provided for:


Total items 1,239 1,777 2,078 1,757 1,527


Funded by capital appropriations (a) 467 1,016 1,321 1,000 765 Funded by capital appropriation - DCB (b) 772 762 757 757 762 Funded internally from departmental resources (c) 520 520 - - -

TOTAL 1,759 2,298 2,078 1,757 1,527


(a) Includes both current Appropriation Bill (No. 2) and prior Act (No. 2/4/6) appropriations.

(b) Does not include annual finance lease costs. Include purchases from current and previous years' Departmental Capital Budgets (DCBs).

(c) Includes s 74 retained revenue receipts.


255


Buildings

$'000


equipment $'000

Computer software

and intangibles

$'000

Total

$'000





or replacement assets By purchase - appropriation equity (a) - 1,016 - 1,016

By purchase - appropriation ordinary annual services (b) 433 549 300 1,282

Total additions 433 1,565 300 2,298

Other movements

Depreciation/amortisation expense (845) (645) (410) (1,900)

Total other movements (845) (645) (410) (1,900)





(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2017-18, including Collection Development Acquisition Budgets.

(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.


256


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

OWN-SOURCE INCOME

Own-source revenue


Environmental Management Charge 11,000 11,000 11,000 11,000 11,000

Infringement Notices 105 80 80 80 80

Rental income 345 345 345 345 345


Total own-source revenue administered on behalf of Government 11,450 11,425 11,425 11,425 11,425

Total own-sourced income administered on behalf of Government 11,450 11,425 11,425 11,425 11,425

Net (cost of)/contribution by services 11,450 11,425 11,425 11,425 11,425

Total comprehensive income/(loss) 11,450 11,425 11,425 11,425 11,425



257


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets






Total assets administered on behalf of Government 7,039 7,039 7,039 7,039 7,039

LIABILITIES

Payables

Other payables 3,057 3,057 3,057 3,057 3,057

Total payables 3,057 3,057 3,057 3,057 3,057

Total liabilities administered on behalf of Government 3,057 3,057 3,057 3,057 3,057

Net assets/(liabilities) 3,982 3,982 3,982 3,982 3,982



258


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received

Environmental Management Charge 11,000 11,000 11,000 11,000 11,000

Infringement Notices 105 80 80 80 80

Rental Income 345 345 345 345 345



Net increase/(decrease) in cash held 11,450 11,425 11,425 11,425 11,425

Cash and cash equivalents at beginning of reporting period - - - - -


- Special Appropriations (11,000) (11,000) (11,000) (11,000) (11,000)

- Other (450) (425) (425) (425) (425)

Total cash to Official Public Account (11,450) (11,425) (11,425) (11,425) (11,425)

Cash and cash equivalents at end of reporting period - - - - -



259

Table 3.10: Statement of administered asset movements (Budget year 2017-18)

Land

$'000

Total

$'000

As at 1 July 2017 Gross book value 3,982 3,982

Accumulated depreciation/amortisation and impairment - -

Opening net book balance 3,982 3,982

CAPITAL ASSET ADDITIONS Estimated expenditure on new or

replacement assets By purchase - appropriation equity (a) - -

Total additions - -

Other movements

Depreciation/amortisation expense - -

Total other movements - -

As at 30 June 2018 Gross book value 3,982 3,982

Accumulated depreciation/amortisation and impairment - -

Closing net book balance 3,982 3,982


(a) 'Appropriation equity' refers to Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2017-18, including Collection Development Acquisition Budgets.

261

SYDNEY HARBOUR FEDERATION

TRUST


PERFORMANCE

263

SYDNEY HARBOUR FEDERATION TRUST




1.3 Budget measures .......................................................................................... 269






265

SYDNEY HARBOUR FEDERATION TRUST



The Sydney Harbour Federation Trust manages some of Sydney’s most renowned and

prominent foreshore lands on Sydney Harbour. These sites are the former Defence

lands at Middle Head–Georges Heights and Chowder Bay in Mosman, the North Head

former School of Artillery, Macquarie Lightstation near South Head, Woolwich Dock

and Parklands, Cockatoo and Snapper Islands, the former Marine Biological Station at

Watsons Bay and the former HMAS Platypus site at Neutral Bay.

The Sydney Harbour Federation Trust is adapting and reusing heritage buildings to

bring life and activity to these harbour foreshores and, at the same time, generating

revenue for operating and maintaining the sites. Its overarching objective is to

transform its sites into precincts and parklands that will enhance the cultural and

historical values of the city, whilst conserving the environmental integrity and unique

heritage of the sites.

Over its life, the Sydney Harbour Federation Trust’s focus has moved from

predominantly community consultation and planning to rehabilitation of lands and

buildings, leasing and public programs. As decontamination, conservation,

refurbishment and rehabilitation of sites is completed, the emphasis of the Trust’s

activities is moving increasingly towards management and maintenance, increasing

visitation and enhancing the visitor and tenant experience. The extension of the life of

the Trust in 2007 to 2033 has influenced the way the organisation views itself and its

operations, with a renewed emphasis on its long-term financial sustainability.

The Sydney Harbour Federation Trust’s objective in 2017–18 and the forward estimates

will be to continue to focus on the sustainability of all of our precincts to ensure we

leave them preserved for future generations. The Trust will undertake a new

interpretive strategy and plan with NSW National Parks for Middle Head, Mosman, to

improve public awareness and appreciation of the natural and cultural values of the

former Aboriginal and military significant site. It will continue to improve visitor

services, amenities and accommodation integrated with event/conferencing use at

Cockatoo Island. The Trust will continue to pursue partnerships with both cultural and

corporate organisations to improve the Trust’s capacity to implement its charter.

Following decontamination of HMAS Platypus, North Sydney, the Sydney Harbour

Federation Trust has completed site planning for the next stage of rehabilitating

HMAS Platypus for public use. This stage includes public domain, access and

selective building refurbishment works. Detailed design development and

Sydney Harbour Federation Trust Budget Statements

266

construction programming is currently being finalised, with construction being

undertaken through 2017-18. Programmed completion is December 2018.

Apart from specific funding measures such as for the HMAS Platypus Stage 1

Rehabilitation, the Sydney Harbour Federation Trust does not receive a

Commonwealth appropriation. Accordingly, the Trust is committed to improving

existing revenue streams and identifying new revenue sources to enable the Trust to

achieve its objects under its enabling legislation.


267













268

Table 1.1: Sydney Harbour Federation Trust resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual $'000

2017-18 estimate

$'000



Interest 60 60

Sale of goods and services 3,871 3,706

Other 13,903 13,907


Total net resourcing for Sydney Harbour Federation Trust 77,248 72,183

2016-17 2017-18





269

1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Sydney Harbour Federation Trust.


270










Note:







story.

The most recent corporate plan for the Sydney Harbour Federation Trust can be found

at: http://harbourtrust.gov.au/about


http://www.harbourtrust.gov.au/publication/sydney-harbour-federation-trust-

annual-report-2015-2016

http://harbourtrust.gov.au/about

http://www.harbourtrust.gov.au/publication/sydney-harbour-federation-trust-annual-report-2015-2016

http://www.harbourtrust.gov.au/publication/sydney-harbour-federation-trust-annual-report-2015-2016


271


Outcome 1: Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.


Programs

Program 1.4 - Conservation of Australia’s Heritage and Environment


The Department of the Environment and Energy and the Sydney Harbour

Federation Trust work together through engagement on policy direction and site

management to preserve the natural and cultural heritage of Sydney Harbour

Federation Trust land and maximise public access.


272






Outcome 1: Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.

2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

Program 1.1: Sydney Harbour Federation Trust

Revenues from other independent sources 18,318 18,463 19,689 20,719 21,645


Outcome 1 totals by resource type

Revenues from other independent sources 18,318 18,463 19,689 20,719 21,645


2016-17 2017-18 Average staffing level (number) 62 63


273





Outcome 1 – Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.

Program 1.1 – Sydney Harbour Federation Trust

To manage emblematic lands around Sydney Harbour, preserve their natural and cultural heritage and foster and promote them as places of leisure, enjoyment and interest for all Australians.

Delivery Undertake works and develop programs and facilities to ensure the Trust sites are progressively rehabilitated, conserved and made available for public use and enjoyment.



2016-17 Urban Parklands - to preserve, enhance and promote the rich historical, cultural and natural values embodied in the Harbour Trust’s lands.

Management Plans for Cockatoo Island, Platypus and Middle Head are completed or on target for completion.

Growth and Enterprise – grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Harbour Trust’s sites.

North Head and HMAS Platypus commercial and public use strategy implemented.

Engagement – extend public engagement and affinity with the Trust’s lands.

Strategic Marketing Plan for accommodation and venue hire on target for completion.

Innovation – achieve operational and business efficiencies.

Implementation of Customer Relations Management leasing module to be implemented during 2017-18.

Asset Management – operate, maintain and upgrade the Harbour Trust’s facilities and infrastructure in an efficient and sustainable manner.

Condition based asset survey completed for all infrastructure and parkland assets.

Commence rehabilitation of HMAS Platypus.

2017-18 Urban Parklands - to preserve, enhance and promote the rich historical, cultural and natural values embodied in the Harbour Trust’s lands.

5% decrease in Work Health Safety incidents based on 2015-16 levels.

Renewal and redevelopment of priority assets as per works program.

Growth & Enterprise – grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Harbour Trust’s sites.

Public/Private investment partner identified.

Lease vacancies less than 4%.

Leasing and licensing income increasing by 6% based on 2015-16 levels.

Platypus commercial and public use strategy being implemented.


274

Program 1.1 – Sydney Harbour Federation Trust

To manage emblematic lands around Sydney Harbour, preserve their natural and cultural heritage and foster and promote them as places of leisure, enjoyment and interest for all Australians.


Engagement – extend public engagement and affinity with the Trust’s lands.

Five cultural/heritage partnerships undertaken.

Headland Park interpretation plan in place and implementation commenced.

Visitation numbers collection methods implemented at North Head and Headland Park.

Innovation – achieve operational and business efficiencies.

Property Management system deployed and integrated.

Asset Management – operate, maintain and upgrade the Harbour Trust’s facilities and infrastructure in an efficient and sustainable manner.

Asset Maintenance Plan in place with updated condition based assessment information for each Trust asset.

Platypus stage 1a completed and stage 1b 50% complete.

2018-19 and beyond As for 2017-18 Approved and revised site plans guiding Harbour Trust decision making.

Asset Management Plan guides the priority of work projects in line with site plans.

17% increase in total independent revenue from leasing and accommodation business based on 2015-16 levels.

Platypus commercial and public use strategy implemented.

Site interpretation completed for major sites.

Visitation increase by 2% to 5% based on 2015-16 levels.

Enterprise Resource Planning system implemented. Reduction in regretted staff turnover to < 5%

Majority of capital projects completed as per program and on budget.

Platypus stage 1 capital refurbishment completed with site activated.

Purposes To manage emblematic lands around Sydney Harbour, preserve their natural and cultural heritage and foster and promote them as places of leisure, enjoyment and interest for all Australians.


275







Income Statement

The Sydney Harbour Federation Trust has budgeted for a small operating surplus of

$0.08 million in 2017–18.

Operating surpluses are maintained in forward years with an increasing trend in

profitability as new income streams are realised. The Trust receives no operating

funding from the Government, with its final operating appropriation received in

2009–10. The majority of the Trust’s income comes from the leasing of its rehabilitated

heritage buildings. Property leasing and licensing revenue is estimated to grow by

6 per cent in 2017–18, with continued growth in the out-years as new leasing

opportunities are made available through the capital works program funded by capital

renewal reserves and HMAS Platypus capital appropriation. Overall expenditure

forecasts for the 2017–18 financial year is $18.5 million, which reflects additional funds

allocated for site interpretation projects and the Trust’s planned asset maintenance

program. Resources will be focused on the continued preservation and conservation of

our aging assets and the capture of asset condition information to assist in forward

resource allocation decision making. The Trust will continue to improve tenant and

visitor experiences at our sites. Improved agency efficiencies will be realised with the

implementation of an integrated property management system, which will enable the

redirection of limited resources to the ongoing management and maintenance of Trust

sites as capital works are completed.

Balance Sheet

The Trust’s major assets are its lands and buildings, which it holds on behalf of the

Commonwealth. In 2017–18, the value of the Trust’s non-financial assets is estimated

to increase to $348.0 million as a result of major building and infrastructure asset

upgrades on the former HMAS Platypus site.

An additional $20.0 million equity injection from Government for the rehabilitation of

the former HMAS Platypus site was allocated to the Trust as a new measure at the

2015-16 Additional Estimates. The community planning and consultation stage of

these works are now complete with the major construction works due to commence in

August 2017 and to be completed in December 2018.


276



2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

EXPENSES


Suppliers 8,681 8,593 9,336 9,884 10,420


Write-down and impairment of assets 205 71 85 90 95

Total expenses 18,318 18,463 19,689 20,719 21,645

LESS:

OWN-SOURCE INCOME

Own-source revenue


services 2,538 2,268 2,316 2,371 2,429

Fees and fines 360 360 360 360 360 Interest 1,544 1,215 1,031 991 924

Rental income 12,821 13,585 16,116 17,025 18,014

Grants 798 - - - -

Other 1,057 1,118 1,119 1,192 1,193



Net (cost of)/contribution by services 800 83 1,253 1,220 1,275

Surplus/(deficit) attributable to the Australian Government 800 83 1,253 1,220 1,275

Total comprehensive income/(loss) 800 83 1,253 1,220 1,275

Total comprehensive income/(loss) attributable to the Australian Government 800 83 1,253 1,220 1,275



277


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 849 1,052 848 677 1,032

Trade and other receivables 1,041 759 729 709 729






Heritage and collections 27,439 27,939 28,364 28,789 29,214

Intangibles 249 359 402 340 267

Inventories 156 126 156 126 156



Total assets 389,708 389,828 390,695 391,826 392,958

LIABILITIES

Payables

Suppliers 825 850 575 584 593

Other payables 3,534 3,448 3,294 3,089 2,945

Total payables 4,359 4,298 3,869 3,673 3,538

Provisions




Net assets 383,803 383,887 385,140 386,360 387,635

EQUITY*



Reserves 98,617 98,617 98,617 98,617 98,617



Total equity 383,803 383,887 385,140 386,360 387,635




278


Retained earnings

$'000

Asset revaluation

reserve $'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2017 Balance carried forward from previous period 7,451 90,171 8,446 277,735 383,803 Adjustment for changes in accounting policies 1 - - - 1

Adjusted opening balance 7,452 90,171 8,446 277,735 383,804

Comprehensive income Surplus/(deficit) for the period 83 - - - 83

Total comprehensive income 83 - - - 83

of which: Attributable to the Australian Government 83 - - - 83

Estimated closing balance as at 30 June 2018 7,535 90,171 8,446 277,735 383,887

Closing balance attributable to the Australian Government 7,535 90,171 8,446 277,735 383,887



279


2016-17 Estimated

actual $'000

2017-18 Budget

$'000


$'000


$'000


$'000


Cash received


Interest 60 60 60 60 60

Net GST received (40) 10 - - -

Other 13,943 13,897 16,188 17,088 18,039


Cash used

Employees 6,909 7,179 7,248 7,535 7,821

Suppliers 9,878 8,676 9,898 10,126 10,696

Total cash used 16,787 15,855 17,146 17,661 18,517



Cash received

Investments 90,084 79,755 69,571 70,531 70,464


Cash used



Investments 84,200 65,000 64,000 67,500 67,000

Total cash used 91,634 81,370 72,630 74,070 73,630


Net increase/(decrease) in cash held (503) 203 (205) (172) 355

Cash and cash equivalents at the beginning of the reporting period 1,353 850 1,053 848 676

Cash and cash equivalents at the end of the reporting period 850 1,053 848 676 1,031



280

Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2016-17


2017-18 Budget

$'000


$'000


$'000


$'000


Funded internally from departmental resources (a) 7,434 16,370 8,630 6,570 6,630

TOTAL 7,434 16,370 8,630 6,570 6,630


Total purchases 7,434 16,370 8,630 6,570 6,630



(a) Includes the following sources of funding: - current Appropriation Bill (No. 1) and prior year Act (No. 1/3/5) appropriations (excluding amounts from the Department Capital Budget); - donations and contributions; - gifts; - internally developed assets; - s 74 Retained revenue receipts; and - proceeds from the sale of assets.


281


Land

$'000

Buildings

$'000


equipment $'000

Heritage and

cultural

$'000

Computer software

and intangibles

$'000

Total

$'000

As at 1 July 2017 Gross book value 197,693 79,468 36,315 27,439 665 341,580

Accumulated depreciation/ amortisation and impairment - (2,608) (4,681) - (416) (7,705)

Opening net book balance 197,693 76,860 31,634 27,439 249 333,875


or replacement assets By purchase - appropriation equity (a) 946 12,306 2,461 500 200 16,413

Total additions 946 12,306 2,461 500 200 16,413

Other movements

Depreciation/amortisation expense - (1,349) (1,131) - (90) (2,570)

Total other movements - (1,349) (1,131) - (90) (2,570)

As at 30 June 2018 Gross book value 198,639 91,774 38,776 27,939 865 357,993

Accumulated depreciation/ amortisation and impairment - (3,957) (5,812) - (506) (10,275)

Closing net book balance 198,639 87,817 32,964 27,939 359 347,718


(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2017-18, including Collection Development Acquisition Budgets.

Documents

Environment and Energy Portfolio - Department of the ... CONTENTS PORTFOLIO OVERVIEW 1 Environment and Energy Portfolio overview 3 ENTITY RESOURCES AND PLANNED PERFORMANCE