Portfolio Budget Statements 2013-14: Budget related paper ... · portfolio budget statements 2013-14 budget related paper no. 1.17 sustainability, environment, water, population and

PORTFOLIO BUDGET STATEMENTS 2013-14 BUDGET RELATED PAPER NO. 1.17 SUSTAINABILITY, ENVIRONMENT, WATER, POPULATION AND COMMUNITIES PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OF APPROPRIATIONS SPECIFIED BY OUTCOMES AND PROGRAMS BY AGENCY

2

© Commonwealth of Australia 2013

ISBN 978174357 697 7

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TONY BURKE

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 Madam Speaker

I hereby submit Portfolio Budget Statements in support of the 2013–14 Budget for the

Sustainability, Environment, Water, Population and Communities 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

TONY BURKE

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nfp not for publication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

Lily Viertmann, Chief Financial Officer, Department of Sustainability, Environment,

Water, Population and Communities on (02) 6274 1111.

A copy of this document can be located on the Australian Government Budget website

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

v

USER GUIDE TO THE

PORTFOLIO BUDGET STATEMENTS

vi

USER GUIDE

The purpose of the 2013–14 Portfolio Budget Statements (PB Statements) is to inform

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

Government outcomes by agencies within the portfolio. Agencies 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 2013–14. In this sense the

Portfolio Budget 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, non-general

government sector entities are not consolidated into the Commonwealth general

government sector fiscal estimates and accordingly, these entities are not reported in

the PB Statements.

vii

CONTENTS

Portfolio Overview......................................................................................................... 1

Sustainability, Environment, Water, Population and Communities Portfolio Overview ......................................................................................................................... 3

Agency Resources and Planned Performance .......................................................... 9

Department of Sustainability, Environment, Water, Population and Communities ................................................................................................................. 11

Bureau of Meteorology ................................................................................................ 101

Director of National Parks ........................................................................................... 127

Great Barrier Reef Marine Park Authority ................................................................... 147

Murray-Darling Basin Authority ................................................................................... 177

National Water Commission ........................................................................................ 205

Sydney Harbour Federation Trust ............................................................................... 227

1

PORTFOLIO OVERVIEW

2

Portfolio Overview

3

SUSTAINABILITY, ENVIRONMENT, WATER, POPULATION

AND COMMUNITIES PORTFOLIO OVERVIEW

Minister and Portfolio Responsibilities

The Sustainability, Environment, Water, Population and Communities portfolio (the

portfolio) is led by the Minister for Sustainability, Environment, Water, Population and

Communities, the Honourable Tony Burke MP, and the Parliamentary Secretary for

Sustainability and Urban Water, the Honourable Amanda Rishworth MP. It comprises

the Department of Sustainability, Environment, Water, Population and Communities

(DSEWPaC), four prescribed agencies1 and two Commonwealth authorities2.

DSEWPaC provides leadership on environment, water, heritage and sustainability

matters with a national focus, or matters that are the direct responsibility of the

Australian Government. In addition to these roles, DSEWPaC is also responsible for

advancing Australia’s interests in the Antarctic, and supporting the Government’s

sustainable population strategy.

Bureau of Meteorology

The Bureau of Meteorology (the Bureau) is an executive3 and prescribed agency and 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 is Australia’s national meteorological authority. It makes observations of

the atmosphere, space, oceans, water and the land, provides forecasts of weather,

climate and water availability, issues extreme weather warnings, studies climate

variability and change, assesses the nation’s water resources, and supports

international cooperation in these areas. The Bureau’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. The Bureau operates under the Meteorology Act 1955 and the Water Act

2007.

1 ‘prescribed agency’ under the Financial Management and Accountability Act 1997 2 ‘Commonwealth authority’ under the Commonwealth Authorities and Companies Act 1997 3 ‘executive agency’ under the Public Service Act 1999

Portfolio Overview

4

Director of National Parks

The Director of National Parks (DNP) is a Commonwealth authority and is responsible

for the outcome:

Conservation and appreciation of Commonwealth reserves through the

provision of safe visitor access, the control of invasive species and working

with stakeholders and neighbours.

The DNP manages the Commonwealth’s terrestrial and marine reserves and

conservation zones, including Kakadu and Uluru–Kata Tjuta National Parks, and

provides national leadership in protected area management. DNP operates under the

Environment Protection and Biodiversity Conservation Act 1999.

Great Barrier Reef Marine Park Authority

The Great Barrier Reef Marine Park Authority (GBRMPA) is a prescribed and statutory

agency4 and 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 GBRMPA protects and conserves the World Heritage values of the Great Barrier

Reef and operates under the Great Barrier Reef Marine Park Act 1975.

Murray-Darling Basin Authority

The Murray-Darling Basin Authority (MDBA) is a prescribed and statutory agency,

established by the Water Act 2007, and is responsible for the outcome:

Equitable and sustainable use of the Murray-Darling Basin by governments

and the community including through development and implementation of a

Murray-Darling Basin Plan, operation of the River Murray system, shared

natural resource management programs, research, information and advice.

The MDBA is responsible for planning integrated management of the water resources

of the Murray-Darling Basin. The MDBA has developed, and will implement and

enforce, the Basin Plan, which includes a sustainable cap on surface and groundwater

diversions across the Basin, an Environmental Watering Plan, a Water Quality and

Salinity Management Plan and water trading and transfer rules.

4 ‘statutory agency’ under the Public Service Act 1999 (agency engaging personnel under this Act)

Portfolio Overview

5

National Water Commission

The National Water Commission (NWC) is a prescribed and statutory agency within

the portfolio and is responsible for the outcome:

Informed decisions by governments on national water issues, and improved

management of Australia’s water resources, through advocacy, facilitation and

independent advice.

The NWC operates under the National Water Commission Act 2004, and works to

improve water management across Australia by providing assessments and advice,

and undertaking activities that promote the National Water Initiative.

Sydney Harbour Federation Trust

The Sydney Harbour Federation Trust (SHFT) is a Commonwealth authority and 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 SHFT is responsible for conserving and planning the future uses of former military

bases and other Commonwealth land around Sydney Harbour. SHFT operates under

the Sydney Harbour Federation Trust Act 2001.

Portfolio Overview

6

Figure 1: Sustainability, Environment, Water, Population and Communities Portfolio Structure and Outcomes

Minister for Sustainability, Environment, Water, Population and CommunitiesThe Honourable Tony Burke MP

Parliamentary Secretary for Sustainability and Urban Water The Honourable Amanda Rishworth MP

Department of Sustainability, Environment, Water, Population and CommunitiesPortfolio Secretary - Dr Paul Grimes

Outcome 1: The conservation and protection of Australia's terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing

Commonwealth protected areas.Outcome 2: Improved sustainability of Australia's population, communities and environment through coordination and

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

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

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

Outcome 5: Increased protection, awareness and appreciation of Australia's environment and heritage through regulating

matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of national and World Heritage significance.

Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth environmental water.

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.

Sydney Harbour Federation TrustExecutive Director - Mr Geoff Bailey

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.

National Water CommissionChief Executive Officer - Mr James Cameron

Outcome: Informed decisions by governments on national water issues, and improved management of Australia's water resources, through advocacy, facilitation and independent advice.

Director of National ParksDirector - Mr Peter Cochrane

Outcome: Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.

Murray-Darling Basin AuthorityChief Executive Officer - Dr Rhondda Dickson

Outcome: Equitable and sustainable use of the Murray-Darling Basin by governments and the community including through development and implementation of a Basin Plan, operation of the River Murray system, shared natural resource management

programs, research, information and advice.

Bureau of MeteorologyDirector - Dr Rob Vertessy

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.

Portfolio Overview

7

PORTFOLIO RESOURCES

Table 1 shows the total new resources provided to the portfolio in the 2013–14 budget

year by agency.

Table 1: Portfolio Resources 2013-14

Receipts Total

Bill No. 1 Bill No. 2 Special

$m $m $m $m $m

Department of Sustainability,

Environment, Water,

Population and Communities

Administered appropriations 886.5 12.3 - 67.8 966.6

Departmental appropriations 453.4 2.5 - 91.3 547.2

Total: 1,513.8


Administered appropriations - - - - -

Departmental appropriations 255.1 14.6 - 76.6 346.3

Total: 346.3


Departmental appropriations - - - 56.7 56.7

Total: 56.7

Great Barrier Reef Marine

Park Authority

Administered appropriations 0.9 - - - 0.9

Departmental appropriations 23.5 - 4.8 16.0 44.3

Total: 45.2

Murray-Darling Basin

Authority

Administered appropriations 3.0 - - - 3.0

Departmental appropriations 47.9 - - 105.1 153.0

Total: 156.0


Administered appropriations - - - - -

Departmental appropriations 8.3 1.2 - - 9.5

Total: 9.5

Sydney Harbour Federation

Trust

Departmental appropriations - - - 15.2 15.2

Total: 15.2

Portfolio total 2,142.7

Less amounts transferred

w ithin portfolio (80.7)

Resources available w ithin portfolio: 2,062.0

Appropriation

9

AGENCY RESOURCES AND PLANNED PERFORMANCE

Department of Sustainability, Environment, Water, Population and Communities ................................................................................................................ 11

Bureau of Meteorology ............................................................................................. 101

Director of National Parks ........................................................................................ 127

Great Barrier Reef Marine Park Authority ............................................................... 147

Murray-Darling Basin Authority ............................................................................... 177

National Water Commission .................................................................................... 205

Sydney Harbour Federation Trust ........................................................................... 227

11

Department of Sustainability,

Environment, Water, Population and Communities

Agency Resources and Planned Performance

13

DEPARTMENT OF SUSTAINABILITY, ENVIRONMENT, WATER, POPULATION AND COMMUNITIES

Section 1: Agency Overview and Resources ........................................................... 15

1.1 Strategic Direction Statement ......................................................................... 15 1.2 Agency Resource Statement .......................................................................... 18 1.3 Budget Measures ............................................................................................ 21

Section 2: Outcomes and Planned Performance ..................................................... 26

2.1 Outcomes and Performance Information ........................................................ 26

Section 3: Explanatory Tables and Budgeted Financial Statements ..................... 82

3.1 Explanatory Tables ......................................................................................... 82

3.2 Budgeted Financial Statements ...................................................................... 85

15

DEPARTMENT OF SUSTAINABILITY, ENVIRONMENT, WATER, POPULATION AND COMMUNITIES

Section 1: Agency Overview and Resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of Sustainability, Environment, Water, Population and Communities

(DSEWPaC) supports the Australian Government’s strategic priority to advance a

sustainable Australia. DSEWPaC is progressing this priority across its six outcomes

through the provision of policy advice, the development and implementation of

programs, research, natural resource planning and management, and regulation.

Outcome 1: Biodiversity and ecosystems

The key strategic priorities for DSEWPaC under outcome 1 include: supporting the

health, resilience and conservation of Australia’s environmental assets through key

environmental initiatives; managing Commonwealth marine and terrestrial reserves;

continuing Australia’s efforts to reform international whaling policy; supporting

efforts to build resilience in marine, aquatic and terrestrial ecosystems; and building a

trusted, comprehensive and accessible national environmental information base.

In line with these priorities, a number of new measures will be delivered from 2013–14

under outcome 1:

The implementation of the second phase of Caring for our Country by DSEWPaC

and the Department of Agriculture, Fisheries and Forestry (DAFF), including a

$200.0 million investment over five years that will continue to improve the

quality of water entering the Great Barrier Reef World Heritage Area.

Funding of $30.0 million over four years to support the implementation of the

Tasmanian Forest Agreement.

Outcome 2: Sustainable population and communities

The key strategic priorities for DSEWPaC under outcome 2 include: supporting

analysis of sustainability issues by government; implementing the National Waste

Policy (in particular by supporting the operation of the Product Stewardship Act 2011

and National Television and Computer Recycling Scheme); completing Council of

Australian Government reforms for managing chemical impacts on the environment

and the review of national legislation to safely manage hazardous waste; reducing

carbon pollution through the application of an equivalent carbon price for synthetic

greenhouse gases; and developing and implementing measures to support sustainable

communities across Australia.

DSEWPaC Budget Statements

16


under outcome 2:

Retention and support of the existing industry funded and operated scheme for

the destruction of waste synthetic greenhouse gases and ozone depleting

substances, through additional government incentives.

Exemption for importers of medicines, veterinary medicines, medical and

veterinary devices and of low volumes of synthetic greenhouse gases from the

licensing and levy provisions of the ozone protection and synthetic greenhouse

gas legislation.

Outcome 3: Antarctica

The key strategic priorities for DSEWPaC under outcome 3 are: furthering Australia’s

research and policy interests in Antarctica and enhancing Australia’s capability to

deliver on Antarctic priorities by modernising and maintaining infrastructure,

deriving optimum benefit from our assets in the region, and being an international

leader and collaborator in Antarctic science and environmental management.


under outcome 3:

Maintaining and delivering Australia’s Antarctic program, with funding of

$9.5 million in 2013–14 to maintain critical Antarctic functions.

High priority life extension works, at a cost of $7.9 million over four years, on the

RSV Aurora Australis, the Antarctic program’s multi-purpose icebreaker vessel.

Outcome 4: Sustainable water

The key strategic priorities for DSEWPaC under outcome 4 are: supporting the

implementation of the Murray-Darling Basin Plan; helping communities and

industries to use water resources sustainably and efficiently; implementing reforms

that deliver more efficient use of water resources; and ensuring community access to

transparent, objective scientific evidence on coal seam gas and coal mining

developments, which potentially impact on water resources.

In line with these priorities, a number of new and existing measures and programs will

be delivered from 2012–13 under outcome 4, to support the continued implementation

of the Murray-Darling Basin Plan, with funding of $3.5 billion over 12 years to 2023–24

for the Murray-Darling Basin Plan – additional support measure (including funding to

the Murray-Darling Basin Authority and the National Water Commission). This

support includes a number of components:

South Australian Riverland Floodplains Integrated Infrastructure program;

Investment in ‘supply measures’ such as Environmental Works and Measures;


17

Investment in ‘efficiency measures’ and constraints removal for Enhanced

Environmental Outcomes;

State basin plan implementation costs;

Local engagement officers;

Murray-Darling Basin Water Knowledge and Research Fund.

The Government’s commitment to bridging the gap has also been extended to 2023–24.

Outcome 4 will also support the Independent Expert Scientific Committee on Coal

Seam Gas and Large Coal Mining Development to provide advice on coal seam gas

and large coal mining developments. This role is likely to be expanded with the

proposed amendments to the Environment Protection and Biodiversity Conservation Act

1999 (EPBC Act) to consider the significant impact of these developments on water

resources.

Outcome 5: Environmental protection and heritage conservation

The key strategic priorities for DSEWPaC under outcome 5 are: ensuring efficient and

effective environmental regulation in cooperation with stakeholders, especially in

relation to protecting matters of national environmental significance; improving the

delivery of regulatory services under the EPBC Act; protecting and increasing

awareness and enjoyment of the places and stories that make Australia special and are

part of our heritage; and ensuring that the environment and natural values of the

Alligator Rivers Region are protected from the impacts of uranium mining.

In line with these priorities, DSEWPaC will continue to administer the EPBC Act in

2013–14. DSEWPaC will likely undertake environmental assessment and approval for

coal seam gas and large coal mining developments that are likely to have a significant

impact on water resources, in line with the proposed amendments to the EPBC Act.

Outcome 6: Commonwealth environmental water

The key strategic priorities for DSEWPaC under outcome 6 are: improving the health

of Murray-Darling Basin rivers, wetlands and freshwater ecosystems; managing the

Commonwealth environmental water holdings in accordance with the Murray-Darling

Basin Environmental Watering Plan and the obligations under the Water Act 2007; and

implementing a monitoring, evaluation and reporting framework to evaluate

outcomes from the use of Commonwealth environmental water.

In line with these priorities, DSEWPaC will continue to deliver elements of the

Murray-Darling Basin Plan under outcome 6 in 2013–14, including the recruitment of

new local engagement officers in key regions of the Murray-Darling Basin.

Further information on all new programs and measures that will be delivered by

DSEWPaC in 2013–14 is provided in Section 2.


18

1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how

resources will be applied by outcome and by administered and departmental

classification.

Table 1.1: Department of Sustainability, Environment, Water, Population and Communities Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013

Estimate Proposed Total Total

of prior year at Budget estimate available

amounts appropriation

available in

2013- 14 2013- 14 2013- 14 2012- 13

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

Ordina ry a nnua l se rvic e s 1

De pa rtme nta l a ppropria tion

Prior year departmental

appropriation 2

52,907 - 52,907 77,068

Departmental appropriation 3

- 411,890 411,890 416,874

Payment to CAC Act bodies 4

- 41,497 41,497 40,170

s31 Relevant agency receipts 5

- 91,343 91,343 90,265

Tota l 5 2 ,9 0 7 5 4 4 ,7 3 0 5 9 7 ,6 3 7 6 2 4 ,3 7 7

Administe re d e xpe nse s

Outcome 1 - Biodiversity & Ecosystems - 578,000 578,000 307,020

Outcome 2 - Sustainable Population

and Communities - 25,178 25,178 11,006

Outcome 4 - Sustainable Water - 246,121 246,121 365,180

Outcome 5 - Environmental Protection

and Heritage Conservation - 9,743 9,743 11,992

Outcome 6 - Commonwealth -

Environmental Water - 27,433 27,433 24,700

Tota l - 8 8 6 ,4 7 5 8 8 6 ,4 7 5 7 19 ,8 9 8

Tota l ordina ry a nnua l se rvic e s

inc luding Spe c ia l Ac c ounts 5 2 ,9 0 7 1,4 3 1,2 0 5 1,4 8 4 ,112 1,3 4 4 ,2 7 5

Tota l ordina ry a nnua l se rvic e s

e xc luding Spe c ia l Ac c ounts A 5 2 ,9 0 7 1,12 0 ,7 6 3 1,17 3 ,6 7 0 1,15 7 ,0 5 3


19

Table 1.1: Department of Sustainability, Environment, Water, Population and Communities Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 (continued)


of prior year at Budget estimate available


available in

2013- 14 2013- 14 2013- 14 2012- 13

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

Othe r se rvic e s 6


Spe c ific pa yme nts to S ta te s,

ACT, NT a nd loc a l gove rnme nt

Outcome 4 - Sustainable Water - 5,204 5,204 18,190

Outcome 5 - Environmental Protection

and Heritage Conservation - 800 800 800

Tota l - 6 ,0 0 4 6 ,0 0 4 18 ,9 9 0

De pa rtme nta l non- ope ra ting

Equity injections - 2,467 2,467 1,872

Prior year non- operating 2

837 - 837 -

Tota l 8 3 7 2 ,4 6 7 3 ,3 0 4 1,8 7 2

Administe re d non- ope ra ting

Administered assets and liabilities - 6,261 6,261 162,180

Prior year administered assets and

liabilities appropration 2

510,188 - 510,188 -

Tota l 5 10 ,18 8 6 ,2 6 1 5 16 ,4 4 9 16 2 ,18 0

Tota l othe r se rvic e s B 5 11,0 2 5 14 ,7 3 2 5 2 5 ,7 5 7 18 3 ,0 4 2

Tota l a va ila ble a nnua l

a ppropria tions 5 6 3 ,9 3 2 1,4 4 5 ,9 3 7 2 ,0 0 9 ,8 6 9 1,5 2 7 ,3 17

Tota l a ppropria tions e xc luding

Spe c ia l Ac c ounts 5 6 3 ,9 3 2 1,13 5 ,4 9 5 1,6 9 9 ,4 2 7 1,3 4 0 ,0 9 5


20

Table 1.1: Department of Sustainability, Environment, Water, Population and Communities Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 (continued)


of prior year + at Budget = estimate available


available in

2013- 14 2013- 14 2013- 14 2012- 13

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

Spe c ia l Ac c ounts

Opening balance 7

461,013 - 461,013 437,344

Appropriation receipts - 310,442 310,442 187,222

Non- appropriation receipts to

Special Accounts - 46,600 46,600 33,604

Tota l Spe c ia l Ac c ount C 4 6 1,0 13 3 5 7 ,0 4 2 8 18 ,0 5 5 6 5 8 ,17 0

Tota l re sourc ing

A+B+C 1,0 2 4 ,9 4 5 1,4 9 2 ,5 3 7 2 ,5 17 ,4 8 2 1,9 9 8 ,2 6 5

Less appropriations drawn from

annual or special appropriations above

and credited to special accounts - (310,442) (310,442) (187,222)

and/or CAC Act bodies through

annual appropriations - (41,497) (41,497) (40,170)

Tota l ne t re sourc ing for

DSEWPa C 1,0 2 4 ,9 4 5 1,14 0 ,5 9 8 2 ,16 5 ,5 4 3 1,7 7 0 ,8 7 3 1 Appropriation Bill (No.1) 2013–14.

2 Estimated adjusted balance carried from previous year for appropriations.

3 Includes an amount of $2.626 million for Australian Antarctic Division (AAD) life extension works and

$24.706 million for the Departmental Capital Budget (DCB) in 2013–14 (refer to table 3.2.5 for further details). For accounting purposes the DCB amount has been designated as 'contributions by owners'.

4 As per the Environment Protection and Biodiversity Conservation Act 1999 section 514S, DSEWPaC is

directly appropriated the Director of National Parks’ (DNP) appropriations, which is then allocated to DNP by the Secretary.

5 Financial Management and Accountability Act 1997 (FMA Act) section 31 receipts, also known as FMA

Regulation 15 receipts, are an estimate. 6 Appropriation Bill (No.2) 2013–14.

7 Estimated opening balance for special accounts (less 'Special Public Money' held in accounts such as

Services for Other Entities and Trust Moneys account as they do not constitute funds available to the department for operations). For further information on special accounts see table 3.1.2.

Reader note: All figures are GST exclusive.

Third party payments from and on behalf of other agencies

2013- 14 2012- 13

$'000 $'000

Payments made to CAC Act bodies within the portfolio

Departmenta l

Director of National Parks Appropriation Act (No.1) 2013-14 41,497 40,170

- -

Tota l Departmenta l CAC Act body payments disc losed above 41,497 40 ,170


21

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to DSEWPaC are detailed in Budget Paper No. 2

and are summarised below.

Table 1.2: Department of Sustainability, Environment, Water, Population and Communities 2013-14 Budget measures Part 1: Measures announced since the 2012–13 MYEFO

Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Revenue measures

Synthetic greenhouse gases

and ozone depleting

substances - implementation

of destruction incentives

program and reduction in

regulatory burden1 2.1

Administered revenues - (503) (510) (510) (510)

Departmental revenues - - - - -

Total - (503) (510) (510) (510)

Environment Protection and

Biodiversity Conservation

Act - deferral2 5.2

Administered revenues (4,105) (7,654) (4,147) (2,221) 335


Total (4,105) (7,654) (4,147) (2,221) 335



Act - w ater resources

amendment 5.2

Administered revenues - - 5,845 5,919 5,977


Total - - 5,845 5,919 5,977

Total revenue measures

Administered (4,105) (8,157) 1,188 3,188 5,802

Departmental - - - - -

Total (4,105) (8,157) 1,188 3,188 5,802

Expense measures

Tasmanian Forests

Agreement - implementation

package3 1.1

Administered expenses 20,280 1,000 7,720 1,000 -

Departmental expenses - - - - -

Total 20,280 1,000 7,720 1,000 -


22

Part 1: Measures announced since the 2012-13 MYEFO (continued)

Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Reef Rescue - continuation4 1.1

Administered expenses - 2,000 2,000 2,000 2,000


Total - 2,000 2,000 2,000 2,000


and ozone depleting

substances - implementation of

destruction incentives program

and reduction in regulatory

burden5 2.1

Administered expenses - (22,242) (27,763) (32,337) (32,537)

Departmental expenses - 6,149 7,849 7,874 7,829

Total - (16,093) (19,914) (24,463) (24,708)

Antarctica - maintaining

Australia's presence6 3.1

Administered expenses - - - - -

Departmental expenses - 9,537 - - -

Total - 9,537 - - -

Antarctica - Aurora Australis

life extension w orks7 3.1


Departmental expenses 2,626 3,956 - 1,282 -

Total 2,626 3,956 - 1,282 -

Liverpool Plains Regional

Water Supply Strategy -

design and scoping study8 4.1

Administered expenses - 400 - - -


Total - 400 - - -

Murray-Darling Basin Plan -

additional support 9 4.1 / 6.1

Administered expenses (693) (1,572) (1,275) (1,280) 19,265

Departmental expenses 191 772 779 510 1,993

Total (502) (800) (496) (770) 21,258


Biodiversity Conservation Act -

w ater resources amendment10 4.1 / 5.2

Administered expenses - 353 473 473 473

Departmental expenses - 8,099 9,704 9,455 9,493

Total - 8,452 10,177 9,928 9,966

Total expense measures

Administered 19,587 (20,061) (18,845) (30,144) (10,799)

Departmental 2,817 28,513 18,332 19,121 19,315

Total 22,404 8,452 (513) (11,023) 8,516


23


Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Savings measures

Targeted savings - public

service eff iciencies All

Administered savings - - - - -

Departmental savings - (907) (1,139) (1,147) (1,002)

Total - (907) (1,139) (1,147) (1,002)

Caring for our Country -

redirection of funding11 1.1

Administered savings (21,005) (4,661) (9,141) (13,351) (9,098)

Departmental savings - - - - -

Total (21,005) (4,661) (9,141) (13,351) (9,098)

Biodiversity Fund - redirection

of funding 1.3

Administered savings - (11,645) (15,673) (3,000) (2,000)


Total - (11,645) (15,673) (3,000) (2,000)

Biodiversity Fund - rephasing

of funding12 1.3

Administered savings - (50,106) (69,548) (52,539) (48,935)

Departmental savings - (839) (1,040) (1,155) (1,229)

Total - (50,945) (70,588) (53,694) (50,164)

Water for the Future - urban

w ater programs - reduced

funding13 4.1

Administered savings (7,375) (2,225) - - -


Total (7,375) (2,225) - - -

Great Artesian Basin

Sustainability Initiative -

reduced funding14 4.1



Total - - - - -



Act - deferral 5.2


Departmental savings - (2,306) (5,344) (384) (1,648)

Total - (2,306) (5,344) (384) (1,648)

Total savings measures

Administered (28,380) (68,637) (94,362) (68,890) (60,033)

Departmental - (4,052) (7,523) (2,686) (3,879)

Total (28,380) (72,689) (101,885) (71,576) (63,912)


24


Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Capital measures


and ozone depleting

substances - implementation

of destruction incentives

program and reduction in

regulatory burden1 2.1

Administered capital - - - - -

Departmental capital - 1,017 195 195 195

Total - 1,017 195 195 195

Water for the Future - bridging

the gap in the Murray-Darling

Basin - extension15 4.1

Administered capital - - - - -

Departmental capital - - - - -

Total - - - - -

Murray-Darling Basin Plan -

additional support9 4.1 / 6.1

Administered capital (2,500) (19,326) (39,344) (30,602) (21,324)

Departmental capital - - - - -

Total (2,500) (19,326) (39,344) (30,602) (21,324)

Total capital measures

Administered (2,500) (19,326) (39,344) (30,602) (21,324)

Departmental - 1,017 195 195 195

Total (2,500) (18,309) (39,149) (30,407) (21,129) 1 This measure includes exemptions from the equivalent carbon price applying to synthetic greenhouse

gases for: medical or veterinary devices, veterinary medicines, low volume imports of equipment containing certain synthetic greenhouse gases, and synthetic greenhouse gases destroyed during manufacturing processes. This measure will also result in a reduction in cost recovery revenue amounting to $1.3 million over four years from 2013–14, with a corresponding reduction in associated departmental expenditure.

2 This measure represents a reduction in revenue as a result of the deferral of cost recovery activity under

the Environment Protection and Biodiversity Conservation Act 1999 from 1 December 2012 to 1 July 2014. Revenue reduction to be offset from within DSEWPaC resources.

3 Total funding of $94.5 million over five years from 2012–13 will be provided for the Tasmanian Forests

Agreement. DSEWPaC will deliver $30.0 million of this funding from 2012–13 to 2015–16. The balance of funding will be delivered by other portfolios.

4 The second phase of Reef Rescue ($200.0 million over five years from 2013–14) will be funded through

Caring for our Country, the Biodiversity Fund and the Natural Disaster Recovery and Rebuilding package. Funding of $10.0 million over five years from 2013–14 will be transferred to DSEWPaC from the COAG Reform Fund special appropriation from the Department of the Treasury (Animal and Plant Pest and Disease Eradication program).

5 This measure retains and supports an industry operated program for the destruction of synthetic

greenhouse gases and ozone depleting substances through the provision of additional government incentives. This proposal also includes departmental funding to supplement the administration of the Equivalent Carbon Price. This includes funding for activities such as enhanced licensing, revenue collection and compliance and enforcement activities and ensuring that financial management and governance arrangements reduce regulatory burden and avoid further disruption of the market. Includes an ongoing saving of administered funding of $32.5 million per year from 2017–18.

6 The measure will maintain critical functions that support Australia’s presence in Antarctica, including

maintenance of stations, continued transport operations and Antarctic science projects. Funding of $9.5 million in 2013–14 to be offset by existing resources within DSEWPaC.


25

Part 1: Measures announced since the 2012-13 MYEFO (continued) 7

This measure provides funding to enable high priority life extension works to be undertaken on the RSV Aurora Australis so that it can remain in operation until the end of the 2016–17 season and allow the government sufficient time to explore options for a new icebreaker.

Funding of $7.9 million over four

years from 2012–13 to be offset by existing resources within DSEWPaC. 8 This measure will provide funding for a design and scoping study for the Liverpool Plains Regional Water

Supply Strategy that will contribute to drought proofing the region. 9 This measure includes components represented as a decision taken not yet announced in both the

2012-13 Budget and the 2012–13 Mid-Year Economic and Fiscal Outlook. The Government subsequently amended the funding profile for some components of the measure. The total package includes funding of $3.5 billion over 12 years to 2023–24 to be delivered by DSEWPaC, the Murray-Darling Basin Authority and the National Water Commission (refer related agency chapters for related components of the measure). The measure includes the final funding profile for the following components: South Australian Riverland Floodplains Integrated Infrastructure program ($155.0 million for the MDBA); Environmental Works and Measures ($1.4 billion); Enhanced Environmental Outcomes ($1.8 billion); Murray-Darling Basin Water Knowledge and Research Fund ($10.0 million); Commonwealth Environmental Water Office Local Engagement Officers ($4.9 million) (this component was also previously reported in the 2012–13 Portfolio Additional Estimates Statements), and the State Basin Plan Implementation Costs ($142.9 million), which will be funded through the Department of the Treasury under Federal Financial Relations arrangements to deliver program funding to states. The measure includes a reprofile and redirection of $2.9 billion funding from the Restoring the Balance program (includes $34.5 million for development of business cases from the Environmental Works and Measures program through Treasury) and a redirection of $12.6 million from the Commonwealth Environmental Water Office.

10 This measure involves implementation of the proposed amendments to the Environment Protection and

Biodiversity Conservation Act 1999 to include impacts of coal seam gas and large coal mining projects on water resources as a matter of national environmental significance. Funding will provide for additional assessment and compliance activities, as well as an expanded role for the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development. Funding of $38.5 million over 4 years from 2013-14 to be offset from resources within DSEWPaC as well as potential cost recovery activity under the Environment Protection and Biodiversity Conservation Act 1999.

11 This measure includes a saving of $14.6 million from the Sustainable Agriculture stream of Caring for our

Country – Natural Heritage Trust for the drought reform package (refer Department of Agriculture, Fisheries and Forestry). This measure also includes $15.9 million from the Sustainable Environment stream of Caring for our Country – Natural Heritage Trust and $26.8 million over five years from 2012–13 from the Environmental Stewardship Program. This funding will be directed to the Tasmanian Forest Agreement package, and to support other portfolio priorities.

12 This measure involves a deferral of Biodiversity Fund funding of $225.4 million to beyond the forward

estimates. 13

This measure includes a reduction in funding for the National Water Security Plan for Cities and Towns ($2.7 million), the National Urban Water and Desalination Plan ($6.6 million) and the Water Smart Australia program ($0.3 million).

14 This measure is a saving of $22.9 million in 2013–14 currently appropriated to the Department of the

Treasury under Federal Financial Relations arrangements to deliver program funding to the states. 15

This measure is an extension of the Bridging the Gap measure (from the 2011–12 Mid-Year Economic and Fiscal Outlook) and includes an additional $310.0 million per year from 2019–20 to 2023–24 for the Restoring the Balance in the Murray-Darling Basin program.

Part 2: Measures not previously reported in a portfolio statement All measures have previously been reported in prior portfolio statements.


26

Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

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 agencies achieve the intended results of their

outcome statements. Agencies 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, specifying the

performance indicators and targets used to assess and monitor the performance of

DSEWPaC in achieving Government outcomes.

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

Outcome 1 Strategy

DSEWPaC is committed to conserving and protecting Australia’s unique biodiversity

through provision of policy advice and the delivery of programs, information and

research. Outcome 1 is delivered through three programs: Sustainable Management of

Natural Resources and the Environment; Environmental Information and Research;

and the Carbon Pollution Reduction – Land Sector Initiatives.

In response to a review of the Caring for our Country initiative, and in consultation

with stakeholders, the next phase of the initiative has been developed and a suite of

programs are being launched for funding in 2013–14.

DSEWPaC will continue working with governments, Indigenous and private

landholders, businesses and non-government organisations to progress

implementation of Australia’s Biodiversity Conservation Strategy 2010–2030,

Australia’s Strategy for the National Reserve System 2009–2030 and Australia’s Native

Vegetation Framework.

Implementation of the National Wildlife Corridors Plan will further underpin delivery

of these national frameworks and assist the Government in prioritising

Commonwealth investment in sustainable natural resource management in order to

promote connectivity and greater resilience of ecosystems across Australian

landscapes.

Implementation of the second phase of the Reef Rescue program under Caring for our

Country will see a further $200.0 million invested over five years, commencing in


27

2013-14, to improve the quality of water entering the Great Barrier Reef Lagoon. The

program aims to assist land managers across the reef catchment adopt improved

agricultural and urban land and water management practices that will reduce the

discharge of nutrients, sediments and pesticides in the reef lagoon and improve the

reef’s resilience to the impacts of climate change. The program will be delivered via

competitive grants, extension and training programs.

As part of the Government’s Clean Energy Future plan, DSEWPaC continues to

administer important land sector initiatives including the Biodiversity Fund, Regional

Natural Resource Management Planning for Climate Change, and the Indigenous

Carbon Farming Fund to provide opportunities for landholders to protect biodiversity

values and carbon on their land.

This landmark agreement aims to provide certainty for Tasmania’s forestry industry,

support local jobs and communities, and protect and manage additional areas of high

conservation value native forests. DSEWPaC will continue to support implementation

of the Tasmanian Forests Intergovernmental Agreement.

In partnership with the Bureau of Meteorology, DSEWPaC will continue to coordinate

and prioritise the way the Australian Government collects, manages and uses

environmental information through the National Plan for Environmental Information

initiative.

The declaration of a network of Commonwealth marine reserves under the

Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) has been a key

achievement since the 2012–13 Budget, with the November 2012 proclamation

permanently protecting more than 2.3 million square kilometres of ocean environment.

The Government is committed to the ongoing management and protection of these

reserves, through Parks Australia.

DSEWPaC will also continue to support the Government in the development and

implementation of the Fisheries Adjustment Assistance Package, which will support

the fishing businesses affected by the establishment of the network of Commonwealth

marine reserves.

In 2013–14 Australia’s international efforts to stop commercial whaling, including

so-called ‘scientific whaling’, will continue to be progressed. Australia’s whale

conservation priorities will be pursued through strategic international engagement

and supported by a range of conservation management arrangements in our waters.

DSEWPaC will continue to work in partnership with state and territory governments

to implement the Nationally Consistent Approach for Access to and the Utilisation of

Australia’s Native Genetic and Biochemical Resources, and to support the ratification

of the Nagoya Protocol to the Convention on Biological Diversity which provides for

the equitable sharing of benefits from genetic resources.


28

Outcome Expense Statement

Table 2.1 provides an overview of the total expenses for outcome 1, by program.

Table 2.1: Budgeted Expenses for Outcome 1 Note: Departmental appropriation splits and totals are indicative estimates and may change during the course of the budget year as Government priorities change.

2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 1.1: Sustainable Management of Natural Resources

and the Environment

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 252,896 353,474

Less Special Accounts (162,522) (283,009)

Special Accounts

Natural Heritage Trust of Australia Account 162,522 283,009

Departmental expenses

Departmental appropriation 1 85,371 84,720

Revenues from independent sources (s31) 21,098 40,095

Expenses not requiring appropriation in the Budget year 2 4,050 1,606

Total for Program 1.1 363,415 479,895

Program 1.2: Environmental Information and Research






Expenses not requiring appropriation in the Budget year 2 1,120 582


Program 1.3: Carbon Pollution Reduction – Land Sector Initiatives





Revenues from independent sources (s31) 523 292

Expenses not requiring appropriation in the Budget year 2 987 275


Outcome 1: The conservation and protection of Australia’s

terrestrial and marine biodiversity and ecosystems

through supporting research, developing information,

supporting natural resource management, and

establishing and managing Commonwealth protected

areas


29

Table 2.1: Budgeted Expenses for Outcome 1 (continued)

2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Outcome 1 Totals by appropriation type

Administered Expenses


Special Accounts 162,522 283,009





Total expenses for Outcome 1 458,565 736,642

2012-13 2013-14

Average Staffing Level (number) 559 535

Outcome 1: The conservation and protection of Australia’s

terrestrial and marine biodiversity and ecosystems

through supporting research, developing information,

supporting natural resource management, and

establishing and managing Commonwealth protected

areas

1 Outcome 1 also has a departmental capital budget of $2.812 million in 2013–14.

2 Expenses not requiring appropriation consists of depreciation and amortisation expense, approved

operating loss, resources received free of charge and other gains.


30

Contributions to Outcome 1

Program 1.1: Sustainable Management of Natural Resources and the Environment

Program Objective

Caring for our Country Initiative: Sustainable Environment Stream

Promote an environment that is healthy, better protected, well managed, resilient and provides essential ecosystem services in a changing climate by investing in projects that contribute to its three strategic objectives:

o Maintenance of ecosystem services, including ecological and cultural values,

now and into the future;

o Protection of our conservation estate; and

o Enhanced capacity of Indigenous communities to conserve and protect

natural resources.

Other initiatives

Develop a consistent, strategic national approach to managing biodiversity and native vegetation through:

o conserving Australia’s biodiversity within our national conservation estate

and, at landscape scale, through the establishment of national wildlife

corridors;

o addressing biodiversity adaptation to climate change;

o establishing and managing a regulatory framework which maximises social,

economic and environmental returns from investment in biodiscovery; and

o supporting greater participation in Indigenous natural resource management

to achieve greater environmental, economic and social outcomes, and

strengthen the department’s contribution towards Closing the Gap on

Indigenous Disadvantage.

Facilitate the protection of areas of high conservation value native Tasmanian forests and contribute to the management of these areas.

Support work to advance efforts to build resilience in marine, aquatic and terrestrial ecosystems and biodiversity through supporting efforts to prevent and abate threats to biodiversity and supporting the ecologically sustainable use of marine resources.

Linked to:

Department of Agriculture, Forestry and Fisheries’ Program 1.2: Sustainable Management – Natural Resources; and

Department of Families, Housing, Community Services and Indigenous Affairs’ Program 7: Indigenous.


31

Program Expenses

Variances to the program expenses over the forward estimates period primarily

relate to the expenditure under the Natural Heritage Trust.

In 2013–14 payments previously made by the Treasury will be paid from the Natural

Heritage Trust. The increase in expenses between 2014–15 and 2015–16 is due

mainly to termination of savings measures from the Caring for Our Country

program. The increase in departmental program support in 2013–14 primarily

reflects increased Section 31 revenue. The increase in expenses not requiring

appropriation in 2012–13 for the approved departmental operating loss reflects the

estimated costs of DSEWPaC’s voluntary redundancy program.


32

Program Expenses 1.1: Sustainable Management of Natural Resources and the Environment

2012-13 2013-14 2014-15 2015-16 2016-17

Revised Budget Forw ard Forw ard Forw ard

Budget year 1 year 2 year 3

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

Annual administered expenses:

Caring for our Country: 1

Natural Heritage Trust 162,522 283,009 280,556 332,062 334,092

Less Special Accounts (162,522) (283,009) (280,556) (332,062) (334,092)

Environmental Stew ardship

Program 11,046 14,404 14,730 16,033 17,459

Working on Country 57,428 46,783 51,378 52,292 52,921

Tasmanian Forests Agreement -

Implementation Package 20,280 1,000 7,720 1,000 -

Caring for our Country - National

Wildlife Corridor Plan 1,620 3,807 - - -

Great Barrier Reef Foundation -

contribution - 3,125 3,125 3,125 3,125

Grants to Voluntary Environment,

Sustainability and Heritage

Organisations - 1,346 1,345 1,344 1,342

Special Account Expenses:

Natural Heritage Trust of

Australia Account 162,522 283,009 280,556 332,062 334,092

Annual departmental expenses:

Departmental Program Support 2 104,969 124,815 106,767 105,874 106,917

Grants to Voluntary Environment,

Sustainability and Heritage

Organisations 1,500 - - - -

Expenses not requiring appropriation

in the Budget year:

Depreciation and amortisation 1,537 1,537 1,536 1,561 1,561

Approved departmental

operating loss 2,435 - - - -

Other 3 78 69 78 78 88

Total program expenses 363,415 479,895 467,235 513,369 517,505 1 Part of Caring for our Country funding has been transferred to the Department of the Treasury to enable

payments required under the Federal Financial Relations Act 2009. 2 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services.

3 Includes resources received free of charge and other gains.


33

Program 1.1 Deliverables


Initiative deliverables for 2013–14 include:

o Policy guidance documents for 2014–15 produced and communicated to the

public.

o A Monitoring Evaluation Reporting and Improvement Plan that defines

monitoring and evaluation methodologies and key performance indicators

for the Initiative.

Funding and support for projects that deliver against the strategic objectives and five year outcomes, as follows:

o Maintenance of ecosystem services, including ecological and cultural values,

now and into the future:

- conserve and protect species and ecosystems;

- restore and maintain urban waterways and coastal environments;

- build natural resource management community skills, knowledge and

engagement;

- address threats to the Great Barrier Reef; and

- assistance for commercial fishers to adjust to the changes brought about

by the establishment of the new Commonwealth marine reserves.

o Enhanced capacity of Indigenous communities to conserve and protect

natural resources:

- build Indigenous people’s capacity for natural resource management;

including through continued investment in the Working on Country

initiative; and

- enable the continued use, support and reinvigoration of traditional

ecological knowledge to underpin biodiversity conservation.

Other initiatives

Continuing to implement Australia’s Biodiversity Conservation Strategy 2010–2030;

Implementing the National Wildlife Corridors Plan and associated management arrangements;

Contributing towards implementation of the Reconciliation Action Plan (2013-15) and development of an Indigenous Engagement Guidelines package;

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

Assessing individual Australian fisheries including against the Guidelines for the Ecologically Sustainable Management of Fisheries;

Developing, implementing and reviewing threat abatement plans and threat abatement advice for key threatening processes; and


34

Contributing to a process to ensure:

o additional areas of Tasmanian public native forest with high conservation

values are further protected through inclusion in formal legislated reserves;

and

o the Tasmanian forest industry has a sustainable and guaranteed wood

supply.

Program 1.1 Key Performance Indicators


By 2014–15, all Caring for our Country Initiative funding rounds have been implemented.

By 2015–16, project proponents have commenced data collection, as per agreed methodologies.

Working on Country program

By June 2014, a national target of over 715 Indigenous rangers will be employed, with an overall target of 730 by June 2015.

Other initiatives

Selected indicators and baseline measurements established by June 2014 to support implementation and reporting on national biodiversity and native vegetation strategies.

The National Wildlife Corridors declaration process is established by June 2014.

Model developed for the implementation of the Nagoya Protocol within Australia to support domestic and international consultation or possible ratification by the end of 2013.

Advice prepared on the protection and conservation of species and key threatening processes according to statutory requirements.

Funding allocated to the Tasmanian Forest Agreement is spent in accordance with the National Partnership Agreement on the Implementation of the Tasmanian Forests Intergovernmental Agreement.


35

Program 1.2: Environmental Information and Research

Program Objective

Developing world-class, public good environmental research that engages with end-users, promotes collaboration between researchers and provides results accessible to government, industry and the community.

Improving, in collaboration with the Bureau of Meteorology, the quality and availability of environmental information for decision makers through:

o coordinating and prioritising environmental information activity;

o developing nationally consistent, authoritative information on key environmental assets for decision makers; and

o developing a plan for an enduring national capacity that builds on these foundations.

Enhancing Australia’s capabilities in taxonomy and species discovery, through training and mentoring of early career researchers.

Documenting and disseminating information on the taxonomy and biogeography of Australia’s biota, providing scientifically verified species information for bio-security and environmental decision-making.

Actively engaging in international efforts towards permanently ending all forms of commercial whaling, including so-called ‘scientific’ whaling.


36

Program Expenses

Variations in administered expenses and departmental program support over the

forward estimates period primarily relate to the International Whale and Marine

Mammal Conservation Initiative.

The increase in expenses not requiring appropriation in 2012–13 for the approved

departmental operating loss reflects the estimated costs of DSEWPaC’s voluntary

redundancy program.

Program Expenses 1.2: Environmental Information and Research

2012-13 2013-14 2014-15 2015-16 2016-17



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


National Environment Research Program 20,020 20,520 20,520 24,020 24,020

International Whale Science Initiative 1,776 1,688 - - -

Australian Biological Resources Study 1,970 2,030 2,030 2,030 2,030

Community Infrastructure Grants

- Cumberland Plains 4,850 - - - -




in the Budget year:

Depreciation and amortisation 548 548 551 557 557

Approved departmental operating loss 538 - - - -

Other 2 34 34 29 34 34

Total program expenses 56,206 43,085 36,522 40,581 40,487 1 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services.



37


Through the National Environmental Research Program (NERP), delivering 'public good' focused environmental research designed to support evidence-based decision making by environmental managers and policy makers.

Developing, in collaboration with the Bureau of Meteorology, a national plan for consolidating and coordinating Australian Government activity in critical environmental information.

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

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

Implementing the International Whale and Marine Mammal Conservation Initiative.

2012-13 2013-14 2014-15 2015-16 2016-17


Deliverables budget year 1 year 2 year 3

Number of research projects co-

funded w ith other agencies

102 102 102 102 102

Number of researchers supported

under the NERP Funding Program *

376 376 376 376 376

Number of researchers supported

under the ABRS National Taxonomic

Research Grants Program

64 64 64 64 64

Biodiversity research projects co-

funded w ith other agencies

16 11 11 11 11

* Actual numbers may differ as this does not account for all post-doctoral, PhD and Honours students and

part-time staff that will be engaged throughout the life of the program.


38


Research funded by the DSEWPaC (through the National Environmental Research Program) and data and information products resulting from that research are made publicly available under open access.

Policy and technical advice to the Attorney-General’s Department is effective, accurate and timely, in supporting Australia’s case against Japan’s program of so-called ‘scientific’ whaling in the Southern Ocean.

In liaison with the Australian Antarctic Division, the program of non-lethal whale and marine mammal research clearly demonstrates to the international community that all necessary conservation management questions can be addressed without the use of lethal whale research methods.

2012-13 2013-14 2014-15 2015-16 2016-17

Key Performance Revised Budget Forw ard Forw ard Forw ard

Indicators budget year 1 year 2 year 3

NERP research information

products publicly available [%]

95 95 95 95 95

Relative value of co-investment

made by other stakeholders to

NERP research projects [%]

50 50 50 TBD TBD

Number of research articles,

papers and notes printed in peer

review ed research journals,

books or other publications

10 20 50 TBD TBD

Number of other stakeholder

organisations/groups or agencies

engaged in the research process

100 100 100 TBD TBD

Number of research projects

w hich involve researchers from 3

or more institutions

na 50 50 TBD TBD

Number of early career

researchers trained in taxonomy

and species discovery funded

through ABRS

na 45 45 45 45

Taxa revised or new ly described

under the ABRS #

200 200 200 200 200

TBD = To be determined.


39

Program 1.3: Carbon Pollution Reduction – Land Sector Initiatives

Program Objective

Land Sector Carbon and Biodiversity Board

Provision of secretariat services to the Land Sector Carbon and Biodiversity Board (the Board) which advises the Government on implementation of Land Sector Package measures.

Ensure land sector initiatives are well-targeted and opportunities maximised through the Board’s consideration, advice and review.

Biodiversity Fund

Improving Australian landscape resilience to climate change.

Enhancing environmental outcomes in Carbon Farming Initiative (CFI) projects.

Helping landholders protect carbon and biodiversity values.

Establishing, restoring and/or protecting biodiverse carbon stores by:

o supporting revegetation;

o managing and protecting existing biodiverse carbon stores in high conservation value areas; and

o supporting actions that prevent the spread of invasive species across connected landscapes.

Stream 1 of the Regional Natural Resource Management (NRM) Planning for Climate

Change Fund

Supporting regional NRM organisations to update their existing regional NRM plans to:

o incorporate climate change mitigation and adaptation approaches; and

o help guide the location and nature of biodiversity and carbon bio-sequestration opportunities and optimise carbon co-benefits for biodiversity, water and agricultural production.

Indigenous Carbon Farming Fund

Supporting the participation of Indigenous Australians in the Carbon Farming Initiative.

Linked to:

Stream 2 (Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education) which will produce updated climate change projections and information on climate change, its impacts and potential adaptation responses for use in regional NRM planning.


40

Program Expenses

Variations in expenses over the forward estimates period primarily relate to the

funding profile of the Carbon Pollution Reduction – Land Sector Initiatives –

Biodiversity Fund and Regional NRM Planning for Climate Change measures.


departmental operating loss reflects estimated costs related to DSEWPaC’s

voluntary redundancy program.

Program Expenses 1.3: Carbon Pollution Reduction – Land Sector Initiatives

2012-13 2013-14 2014-15 2015-16 2016-17



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


Biodiversity Fund 20,462 179,614 164,733 132,663 111,526

Regional NRM Planning for Climate

Change 3,760 18,000 1,150 1,250 -

Indigenous Carbon Farming Fund 1,286 2,674 1,871 5,065 4,960




in the Budget year:



Other 2 29 29 29 29 29




41



Annual report to Parliament about progress of land sector measures;

Advice for relevant Ministers on implementation of the land sector package; and

Advice on coordinated research activities.

Biodiversity Fund

Monitoring Evaluation Reporting and Improvement Plan that defines monitoring and evaluation methodologies and key performance indicators.

Supporting projects that:

o increase quantity and resilience of biodiverse ecosystems; and

o enhance landscape connectivity.

Stream 1 of the Regional NRM Planning for Climate Change Fund

Regional NRM organisations are assisted with funding to update existing regional NRM plans through activities appropriate to the region’s circumstances including:

o community consultation;

o use of planning tools; and

o adopting information about anticipated climate change impacts on regions.


Supporting projects that provide:

o information for Indigenous Australians to help decision-making on whether or not to participate in the carbon market;

o business development support and capacity building to develop and implement Indigenous carbon businesses; and

o legal and governance support to develop contractual and governance arrangements around Indigenous carbon businesses.


42



Board provides advice to Ministers on Land Sector Package and meet as required;

Board reports annually to Parliament on the progress of Land Sector Package measures; and

Board provides effective, accurate and timely advice to relevant Ministers on implementation, research and key performance indicators on Land Sector Package measures.

Biodiversity Fund

Program rounds have been implemented to support the aims of the Biodiversity Fund.

Establishing, restoring and/or protecting biodiverse carbon stores by:

o supporting revegetation;

o managing and protecting existing biodiverse carbon stores in high conservation value areas; and

o supporting actions that prevent the spread of invasive species across connected landscapes.

Project proponents have commenced data collection, as per agreed methodologies, which has been used to publicly report on program progress.

Stream 1 of the Regional NRM Planning for Climate Change Fund

Principles for the Regional NRM Planning for Climate Change Fund developed to guide the process of updating existing regional NRM plans in a nationally consistent way;

Updated regional NRM plans address the Principles for the Regional NRM Planning for Climate Change Fund;

Regional NRM plans across Australia updated by the end of the 2015–16 financial year; and

Regional NRM organisations have improved capacity to plan for climate change adaptation and mitigation.


Program rounds continue to be implemented to support the aims of the Indigenous Carbon Farming Fund for the provision of:

o knowledge and information for Indigenous Australians to help decision-making on whether or not to participate in the carbon market;

o business development support and capacity building to develop and implement Indigenous carbon businesses; and

o legal and governance support to develop contractual and governance arrangements around Indigenous carbon businesses.


43

Outcome 2: Improved sustainability of Australia’s population, communities and environment through coordination and development of sustainable population and communities policies, and the reduction and regulation of waste, pollutants and hazardous substances.

Outcome 2 Strategy

DSEWPaC contributes to advancing a sustainable Australia by advising on policies

and delivering programs to promote a sustainable environment, population and

communities. Under outcome 2, DSEWPaC will continue to administer initiatives

contained in the Sustainable Australia: Sustainable Communities Strategy announced

in 2011. In addition, administration of national legislation and implementation of

international commitments covering waste and hazardous substances, hazardous

chemicals, synthetic greenhouses gases, and ozone depleting substances plays a

significant role in ensuring a cleaner and more sustainable future for Australia.

The overarching objective to improve the sustainability of Australia’s population and communities will continue to be addressed through the implementation of the Measuring Sustainability program and Suburban Jobs program. In 2013–14:

the Measuring Sustainability program will support the work of Australia’s

National Sustainability Council and will communicate information about the

status and trends associated with national sustainability indicators announced in

2012 to help inform government, community and business decision making; and

the Suburban Jobs program will continue to support the implementation of the

Werrington Park Corporate Centre in Penrith, the Western Business Accelerator

and Centre of Excellence in Melton, and the Stretton Centre in Playford, to

demonstrate, and promote information about, approaches to achieve sustainable,

diverse employment in suburban locations.

A key milestone in the implementation of the National Waste Policy (endorsed by the

Council of Australian Governments (COAG) in 2010) was achieved with passage of the

Product Stewardship Act 2011 (the Act). The first scheme implemented under the

legislation, the National Television and Computer Recycling Scheme, will enter its

second full year of operation in 2013–14 with more than 500 recycling drop-off points

across Australia administered by four industry arrangements. This includes the first

industry-led stewardship schemes accredited under the voluntary provisions of the

Act. In 2013–14, states and territories will commence work with the household battery

and waste paint industries to consider future stewardship arrangements for those

products. Another key deliverable during 2013–14 will be the publication of the second

National Waste Report, providing a national snapshot of waste and resource recovery

and changes since the first National Waste Report was released in 2010.

The Government is committed to addressing emissions of synthetic greenhouse gases

as part of the Clean Energy Future Package. The application of an equivalent carbon

price to synthetic greenhouse gases commenced on 1 July 2012 and will continue to be

implemented in 2013–14. Support for the existing industry funded and operated


44

scheme, and additional government incentives for the destruction of synthetic

greenhouse gases and ozone depleting substances will commence on 1 July 2013.

Likewise, subject to legislative change, many importers of equipment that contains

very low volumes of synthetic greenhouse gases, such as air conditioners and

refrigerators, will be exempt from applying for an import licence and paying an

equivalent carbon price. These exemptions will significantly reduce regulatory burden

and the cost of applying for an import licence for businesses.

Revenue estimates for the equivalent carbon price on synthetic greenhouse gases have

been revised downwards by $70.0 million in 2012–13 to $120.0 million; $30.0 million in

2013-14 to $190.0 million; $20.0 million in 2014-15 to $200.0 million; $200.0 million in

2015-16 to $50.0 million; and $160.0 million in 2016-17 to $90.0 million based on the

quantity of synthetic greenhouse gases imported for the first two quarters of 2012–13

and forward year analysis by the Treasury.

Import data for these quarters show a reduced demand for imported synthetic

greenhouse gases compared with previous years, particularly for bulk gas. There are a

range of factors influencing demand for imported synthetic greenhouse gases in

2012-13. A major factor has been the higher than usual quantity of stock on hand at

30 June 2012 reflecting higher synthetic greenhouse gas imports in that year prior to

the introduction of the equivalent carbon price. Other potential factors include the

adoption of alternatives to synthetic greenhouse gases, improved equipment

maintenance, and increased levels of recycling.




45

Table 2.1: Budgeted Expenses for Outcome 2 Note: Departmental appropriation splits and totals are indicative estimates and may change during the course of the budget year as government priorities change.

2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 2.1: Management of Hazardous Wastes,

Substances and Pollutants



Special Accounts

Ozone & Synthetic Greenhouse Gas Account 11,785 11,933






Program 2.2: Sustainable Communities

















2012-13 2013-14


Outcome 2: Improved sustainability of Australia's

population, communities and environment through

coordination and development of sustainable population

and communities policies and the reduction and regulation

of waste, pollutants and hazardous substances





46


Program 2.1: Management of Hazardous Wastes, Substances and Pollutants

Program Objective

To improve the quality of the environment and reduce pollution through the

implementation of national frameworks, standards, regulation, and

monitoring; reporting of wastes, hazardous substances, air pollutants, ozone

depleting substances and synthetic greenhouse gases; and destruction of

synthetic greenhouse gases.

Linked to: Department of Health and Ageing: Program 1.4 Regulatory Policy.

Program Expenses

The increase in expenses over the forward estimates primarily relates to the

Synthetic Greenhouse Gases and Ozone Depleting Substances Implementation of

Destruction Incentive Scheme measure.



redundancy program.


47

Program Expenses 2.1: Management of Hazardous Wastes, Substances and Pollutants

2012-13 2013-14 2014-15 2015-16 2016-17



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


Destruction of SGG and Ozone Depleting

Substances - 1,192 991 5,183 4,983

Other 14,049 13,841 13,574 13,333 13,333



Ozone & Synthetic Greenhouse Gas

Account 11,785 11,933 12,346 12,804 12,804



Expenses not requiring appropriation in

the Budget year:


Approved departmental operating loss 1,424 - - - -

Other 2 210 215 215 210 218




48


National Waste Policy, including:

o delivery of the product stewardship legislative framework, including

legislative arrangements for voluntary product stewardship; and

o delivery of the National Television and Computer Recycling Scheme.

Administering national legislation covering product stewardship; fuel quality

standards; the disposal and reuse of used petroleum based oil, national

environment protection measures; the export, import and transit of hazardous

waste; and the import, manufacture, use and destruction of ozone depleting

substances and synthetic greenhouse gases.

Applying an equivalent carbon price to the import and manufacture of

synthetic greenhouse gases, and arrangements for destruction of waste

synthetic greenhouse gases and ozone depleting substances as part of the Clean

Energy Future Package.

Meeting Australia’s obligations under international agreements on waste and

hazardous substances, hazardous chemicals, synthetic greenhouses gases, and

ozone depleting substances.

Leading Australia’s consideration of the ratification of the Minamata

Convention on Mercury.

Leading work with the states and territories to advise governments on an

environmental standards setting body for chemicals relating to better

environment protection and management.

Contributing to work led by the states and territories in the development of

national air pollutant emission reduction strategies and the evidence base to

support these strategies.

Providing advice to the statutory regulators on the risk and environmental

impacts of the trial and release of genetically modified organisms,

nanomaterials, chemicals and biological products.

Administering the National Pollutant Inventory and annual publication of the

previous year’s data set by 31 March.


49


Ramp up roll out of the voluntary product stewardship arrangements in

2013-14.

Importers and manufacturers of televisions, computers, printers and computer

products achieve a recycling target of 33 per cent in 2013–14.

Continued implementation of the equivalent carbon price on imports and

manufacture of synthetic greenhouse gases and arrangements for destruction

of waste synthetic greenhouse gases.

Accurate and readily accessible data on emissions and transfers of 93 key

pollutants from industrial facilities are published by the National Pollutant

Inventory by 31 March, with data on emissions from diffuse sources, such as

motor vehicles and households, updated as required.

2012-13 2013-14 2014-15 2015-16 2016-17



Used oil recovered for re-use

over a 3 year average under the

PSO Act1

>250 >250 >250 >250 >250

Site visits undertaken to test fuel

samples as part of the complete

program under the FQS Act2 [#]

650 650 650 650 650

Assessments of chemicals and

genetically modif ied organisms [#]

Approx

250

Approx

250

Approx

250

Approx

250

Approx

250

Licences and permits to control

import and export of ozone

depleting substances and

synthetic greenhouse gases

issued w ithin statutory timeframes

[%]

100 100 100 100 100

1 Product Stewardship (Oil) Act 2000

2 Fuel Quality Standards Act 2000.


50

Program 2.2: Sustainable Communities

Program Objective

To promote sustainable communities, contributing to a sustainable Australia

through:

supporting state and local governments to plan and provide for increased

employment opportunities outside the central business districts of our major

capital cities; and

improving awareness and accessibility of sustainability information to inform

decision-making by governments, the private sector and communities.

Linked to:

Regional Sustainability Planning under outcome 5

Program Expenses

Variations in expenses over the forward estimates period primarily relate to grant

activity under the Suburban Jobs program.



redundancy program.

Program Expenses 2.2: Sustainable Communities

2012-13 2013-14 2014-15 2015-16 2016-17



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


Sustainable Australia - Suburban Jobs 1 8,742 22,078 8,736 - -




the Budget year:



Other 3 5 10 10 5 5

Total program expenses 13,594 27,726 14,242 3,471 3,489 1 For the Sustainable Australia - Sustainable Planning Initiative refer to Program 5.2 Environmental

Regulation in Table 2.1.5. 2 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services.



51


Continued implementation of three projects funded under the Suburban Jobs

program in Penrith NSW (through the University of Western Sydney), Melton,

Victoria (through the Melton City Council) and Playford, South Australia

(through the City of Playford).

A set of headline sustainability indicators that will track progress of key

economic, social and environmental factors over time; biennial public reporting

against the indicators by an independent National Sustainability Council; and

an online directory of sustainability information.


Suburban Jobs program projects implemented and information shared across

project proponents.

A biennial public report against a set of sustainability indicators by

30 June 2015.


52

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

Outcome 3 Strategy

The Australian Antarctic Division of DSEWPaC leads Australia’s Antarctic program. It

pursues the vision of ‘Antarctica – valued, protected and understood’.

In pursuing outcome 3, the primary activities to be undertaken are:

advancing Australia’s Antarctic interests within the Antarctic Treaty system;

leading a whole of government approach to Antarctic and sub-Antarctic policy

development and implementation;

administering the Australian Antarctic Territory and Territory of Heard Island

and McDonald Islands;

conducting and facilitating research that is relevant to national policy objectives

in high priority areas of Antarctic and Southern Ocean science, particularly

climate change, ecosystems, natural resource management and environmental

protection;

supporting Antarctic and sub-Antarctic research by other institutions through

grants and logistics support;

coordinating and managing logistics support for Australia’s Antarctic program

including permanent stations, marine science, field support, transport,

communication and medical services; and

providing a repository and primary source of Australian Antarctic information.

To further support DSEWPaC’s provision of transport logistics support for the

Australian Antarctic program, funding has been provided in the 2013–14 Budget for

high priority life extension works to be undertaken on the RSV Aurora Australis, the

multi-purpose icebreaker vessel. This will enable the Aurora Australis to continue to re-

supply cargo and fuel to Australia’s Antarctic and sub-Antarctic stations, transfer

Antarctic expeditioners and provide a platform for marine and ice science in the

Southern Ocean while the government works towards a replacement vessel in coming

years.

DSEWPaC will continue to maintain and deliver the Antarctic Science program

through the Australian Antarctic Division, with one year of additional funding of

$9.5 million provided in the 2013–14 Budget to continue vital operations in Antarctica,

including continuing Australian research and expedition activities as well as operation

of the Antarctic and sub-Antarctic stations.

Outcome 3 is delivered through one program – Antarctica: Science, Policy and

Presence.


53




2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 3.1: Antarctica: Science, Policy and Presence












2012-13 2013-14


Outcome 3: Advancement of Australia’s strategic, scientific,

environmental and economic interests in the Antarctic by

protecting, administering and researching the region





54


Program 3.1: Antarctica: Science, Policy and Presence

Program Objective

Australia’s Antarctic program objectives are based on the region’s strategic,

scientific, environmental and economic importance for Australia. They include:

conducting scientific research in Antarctica and the Southern Ocean that

supports national policy and environmental management priorities, in

particular taking advantage of the special opportunities the Antarctic offers for

globally significant and coordinated research;

preserving our sovereignty over the Australian Antarctic Territory, including

our sovereign rights over adjacent offshore areas;

protecting the Antarctic and the Southern Ocean environment, having regard

to its special qualities and effects on our region;

contributing to maintaining Antarctica’s freedom from strategic and/or

political confrontation;

being informed about and able to influence developments in a region

geographically proximate to Australia; and

facilitating the deriving of any reasonable economic benefits from living and

non-living resources of the Antarctic and the Southern Ocean (excluding

deriving benefits from mining and oil drilling in the Antarctic Treaty area).

Program Expenses

Variations in expenses over the forward estimates period primarily relate to

movements in Section 31 receipts and the Antarctica - Maintaining Australia’s

Presence measure.


55

Program Expenses 3.1: Antarctica: Science, Policy and Presence

2012-13 2013-14 2014-15 2015-16 2016-17



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




the Budget year:


Approved departmental operating loss 18,639 15,880 15,880 15,880 15,880

Makegood provision increases - - - - -

Other 2 2,626 - - - -

Total program expenses 183,201 168,900 141,450 142,293 141,350 1 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services. This revenue is recognised

as contracts for services are confirmed over time, thereby explaining the profile in 2013–14 and the forward years (no forward years contracts have been confirmed at this time).

2 Includes expenses relating to AAD Life Extension work funded from existing resources.


56


Deliver high priority Australian Antarctic scientific research in accordance with

the goals of the Australian Antarctic Science Strategic Plan 2011–12 to 2020–21.

Protect the Antarctic environment and undertake work of practical, economic

and international significance including compliance with all Australian

Antarctic environmental legislation.

Pursue Australia’s Antarctic policy objectives through participation in the

Antarctic Treaty system and related fora, including meetings of:

o the Antarctic Treaty Consultative Parties and the Committee for

Environmental Protection;

o the Commission for the Conservation of Antarctic Marine Living Resources;

o the Scientific Committee on Antarctic Research;

o the Council of Managers of National Antarctic programs; and

o the Agreement on the Conservation of Albatrosses and Petrels.

Administer the Australian Antarctic Territory and the Territory of Heard

Island and McDonald Islands, including the authorisation and management of

Australian activities in accordance with relevant legislation and environmental

protection measures.

Maintain three stations in the Australian Antarctic Territory and one station in

the sub-Antarctic, listed below:

o Casey Station (Antarctica);

o Davis Station (Antarctica);

o Mawson Station (Antarctica); and

o Macquarie Island Station (sub-Antarctic).

Operate a transport and logistics network using shipping and air services to:

o transport expeditioners and cargo between Australia, Antarctica and

sub-Antarctic islands; and

o support scientific research in Antarctica and the Southern Ocean.


57

2012-13 2013-14 2014-15 2015-16 2016-17



Participation in key Antarctic Treaty

related forums [% attended]

100 100 100 100 100

Scientists active in Antarctica, the

sub-Antarctic and the Southern

Ocean during the f inancial year [#]

90 80 80 80 80

Permanent stations operated,

maintained and resupplied [#]

4 4 4 4 4

Shipping days in support of

Australia’s Antarctic Program [#]

180 180 180 180 180

Flights betw een Hobart and Casey

stations [# of return f lights] *

15 15 0 0 0

Volume of cargo transported to

Australia’s Antarctic and sub-

Antarctic stations [cubic metres]

10,000 10,000 10,000 10,000 10,000

Station utilisation

[# of occupied bed nights]

40,000 40,000 40,000 40,000 40,000

* This deliverable reflects the activity relating to the Australia-Antarctica Airlink measure. The reduction in

flights in 2014–15 reflects that funding is not yet confirmed for this measure beyond 2013–14.


58


Internationally recognised scientific research in Antarctica and the Southern

Ocean will be measured by the number of published scientific papers and the

number of international institutions collaborating in the Australian Antarctic

program.

Enhanced Australian influence in the Antarctic Treaty system including

through participation in its various fora as indicated by the extent to which

Australia’s objectives are achieved and the number of senior positions

(e.g. Chairperson or Vice-Chairperson) held by Australia.

Australia’s Antarctic program complies with all Australian Antarctic

environmental legislation. The program’s target is 100 per cent compliance.

2012-13 2013-14 2014-15 2015-16 2016-17



Scientif ic publications produced in

the previous calendar year [#]*

150 150 150 150 150

International institutions

collaborating in the Australian

Antarctic program [#]*

100 100 100 100 100

Senior positions held on Antarctic

Treaty related organisations [#]

2 2 2 2 2

Australian Antarctic program

compliance w ith Antarctic

environmental legislation [#]

100 100 100 100 100

Number of expeditioners

transported to Australia’s

Antarctic and sub-Antarctic

stations [round trips]

350 350 350 350 350

Environmental authorisations

assessed relating to tourism

6 6 6 6

* These figures have been revised in response to the Australian Antarctic Science Strategic Plan 2011–12 to

2020–21, which represents a refocusing of priorities.


59

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

Outcome 4 Strategy

Outcome 4 is delivered through one program, Water Reform.

In 2013–14 DSEWPaC will continue to contribute to improving the sustainability of

Australia’s water resources through its ongoing development and implementation of

water reforms and programs. DSEWPaC will progress the implementation of the 2004

National Water Initiative, the Water Act 2007, the 2008 Intergovernmental Agreement

on the Murray-Darling Basin, the Murray-Darling Basin Plan and the Government’s

Water for the Future programs and policies.

A number of new measures are given effect in the 2013–14 Budget to further support

the implementation of the Murray-Darling Basin Plan, with funding of $3.5 billion

provided over 12 years (including funding for the Murray-Darling Basin Authority,

National Water Commission and Commonwealth Environmental Water Office to

deliver components of the package). This includes funding of $1.4 billion over 11 years

for additional Environmental Works and Measures, as well as funding of $1.8 billion

over 11 years for Enhanced Environmental Outcomes. The Government will continue

its commitment to bridge the gap from 2019–20 to 2023–24.

DSEWPaC will continue to support the statutory Independent Expert Scientific

Committee on Coal Seam Gas and Large Coal Mining Development (the Committee) to

build understanding of the impacts of coal seam gas and coal mining developments on

water resources. The Committee will provide advice on research priorities and on

Commonwealth and state referrals for development projects, in accordance with the

National Partnership Agreement on Coal Seam Gas and Large Coal Mining

Development, and the Environment Protection and Biodiversity Conservation Act 1999

(EPBC Act). This includes an expanded advice role as a result of proposed

amendments to the EPBC Act that require federal assessment and approval of coal

seam gas and large coal mining developments which have a significant impact on

water resources. DSEWPaC will commission research projects and coordinate

bioregional assessments with scientific oversight by the Committee.




60


2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 4.1: Water Reform



Other services (Appropriation Bill No. 2) 18,190 5,204

Water Eff iciency Labelling and Standards Account 1,850 1,910

Services for Other Entities and Trust Monies Special Account 510 510









Other services (Appropriation Bill No.2) 18,190 5,204







2012-13 2013-14


Outcome 4: Adaptation to climate change, w ise water use,

secure water supplies and improved health of rivers,

waterways and freshwater ecosystems by supporting

research, and reforming the management and use of water

resources





61



Program Objective

Deliver water reforms under the 2004 National Water Initiative, the Water Act

2007 and other Council of Australian Governments agreed measures.

Support implementation of the Murray-Darling Basin Plan.

Help communities, irrigators and businesses, particularly in the

Murray-Darling Basin, use water resources sustainably and efficiently.

Improve the health of rivers, wetlands and freshwater ecosystems.

Advance the Government’s ‘bridge the gap’ commitment for the recovery of

water for the environment in the Murray-Darling Basin.

Ensure community access to transparent, objective scientific evidence

informing regulatory decisions regarding coal seam gas and coal mining

developments, which potentially impact on water resources.

Linked to:

Program 6.1: Commonwealth Environmental Water

Program Expenses


timing of expected water efficiency projects, reclassifications between appropriation

Bills, the reclassification of the Commonwealth contribution to the Murray-Darling

Basin Authority from departmental program support to the Commonwealth

Contribution under the Murray-Darling Basin Agreement administered

sub-program, the transfer of funding to the Murray-Darling Basin Authority from

the Driving Reform in the Basin program and the new expense and savings

measures reflected in the Portfolio Budget Statements 2013–14.



redundancy program.


62

Program Expenses 4.1: Water Reform

2012-13 2013-14 2014-15 2015-16 2016-17



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


Sustainable Rural Water Use and

Infrastructure 256,596 203,200 297,796 693,007 397,258

Restoring the Balance in the Basin

(non capital expenditure) 300 300 300 300 450

Water Smart Australia 8,700 - - - -

National Urban Water and Desalination

Plan 65,969 21,295 26,559 13,860 -

National Water Security Plan for Cities

and Tow ns 13,954 - - - -

Water Resources Assessment and

Research Grant 175 175 175 175 175

Independent Expert Scientif ic Committee

on Coal Seam Gas and Large

Coal Mining - 885 885 885 1,035

Commonw ealth Contribution under

the Murray-Darling Basin Agreement 1 19,486 20,266 21,077 22,300 23,100

National Urban Water and Desalination

Plan (SPP) 950 950 5,500 2,100 -

National Water Security Plan for Cities

and Tow ns (SPP) 13,871 4,254 - - -

Sustainable Rural Water Use and

Infrastructure (SPP) 3,369 - - - -


Water Eff iciency Labelling and

Standards Account 1,850 1,910 1,960 2,020 2,020

Water for the Environment

Special Account - - 15,000 40,000 110,000

Services for Other Entities and

Trust Moneys Special Account 2 510 510 510 510 510



Science Based Framew ork for

Coal Seam Gas and Coal Mining

Impacts on Water 24,585 30,060 30,065 30,072 14,250


in the Budget year:



Other 4 113 107 118 127 117

Total program expenses 476,310 333,094 448,814 855,722 594,666


63

Program Expenses 4.1: Water Reform (continued) 1 The level of funding provided to the Murray-Darling Basin Authority under the MDB Agreement has been

agreed for the years 2012–13 to 2014–15. The contribution for 2015–16 and 2016–17 above is an estimate.

2 The department has no discretion over the receipts returned to the Services for Other Entities and Trust

Moneys Special Accounts. 3 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services.

4 Includes resources received free of charge, other gains and impairment expenses on water entitlements.


Work with states, territories, communities, industry and partner organisations,

through a range of interlinked policy measures and program activities, including:

implementing actions under Council of Australian Governments national

water reform agenda, the Murray-Darling Basin Plan and the relevant

Intergovernmental Agreements on Murray-Darling Basin Reform;

investing with state and territory governments, industry and communities

across Australia to improve urban and rural community water infrastructure;

recovering water for the environment through investment in infrastructure and

water purchases, to ‘bridge the gap’ between the Sustainable Diversion Limits

included in the Basin Plan and existing diversions;

enhancing the effectiveness and transparency of the water market, particularly

through implementation of the Common Registry Solutions under the National

Water Market Systems program;

developing and adopting new technologies to improve water use efficiency

and ensure greater water security;

continuing to work with states, territories, landowners and community groups

to improve the management of rivers, wetlands and freshwater ecosystems,

particularly those of national and international importance;

administration of the Great Artesian Basin (GAB) Sustainability Initiative and

coordination of management actions of the GAB through the GAB

Coordinating Committee;

effective implementation of the Lake Eyre Basin Agreement;

implementing the outcomes of the National Water Quality Management

Strategy Review in conjunction with the states and territories; and

informing the application and monitoring of reform measures by working with

key bilateral country partners to share water management experience and

contributing to the improvement of water knowledge globally.

The Office of Water Science will continue to deliver its objective by:

supporting the Independent Expert Scientific Committee on Coal Seam Gas

and Large Coal Mining Development (the Committee) to deliver its legislative


64

functions within the Environment Protection and Biodiversity Conservation Act

1999 (EPBC Act);

implementing bioregional assessments for six priority regions;

implementing a research program with reference to the Committee’s Research

Strategy;

facilitating advice provided by the Committee on relevant EPBC Act and state

referrals, in accordance with the National Partnership Agreement on Coal

Seam Gas and Large Coal Mining Development; and

communicating and making publicly accessible the role of the Committee and

its findings.

2012-13 2013-14 2014-15 2015-16 2016-17



Independent Expert Committee on

Coal Seam Gas and Large Coal

Mining Development meetings held

11 11 11 11 TBA


Water Policy and Programs

Enhance the progress of national water reform through assisting and

participating in measures driving agreed water reform agendas.

Delivery of water infrastructure programs.

Total water recovery from water purchases, contracted efficiency measures and

state activities, exceeds 1750 GL by 30 June 2014 towards meeting the

Government’s ‘bridge the gap’ commitment.

Water Science

Scientific advice provided by the Independent Expert Scientific Committee on

Coal Seam Gas and Large Coal Mining Development (the Committee), in

relation to proposed coal seam gas and large coal mining developments which

potentially impact on water resources, is published on the Committee’s website.

Research on water related matters of coal seam gas and large coal mining

developments, endorsed by the Committee, is published on the Committee’s

website.


65

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

Outcome 5 Strategy

The overarching objective of outcome 5, to increase protection of Australia’s

environment and heritage, will be achieved by:

identification, assessment and strategic analysis of environmental, sustainability

and biodiversity values in cooperation with state, territory and local governments;

identification of special places in Australia that should be recognised and

protected through inclusion on the World and National Heritage lists;

identification of threatened species and ecological communities in Australia that

should be recognised and protected under Environment Protection and Biodiversity

Conservation Act 1999 (EPBC Act) listing;

ensuring effective management arrangements are in place to protect Australia’s

biodiversity and world, national, Indigenous, and maritime heritage places; and

continuing to protect the Alligator Rivers region from the impact of uranium

mining.

A key aspect of DSEWPaC’s responsibilities is the administration of the EPBC Act. In

2013-14 DSEWPaC will continue its focus on improving the administration of the

EPBC Act. Priorities include working with the states and territories to streamline

assessment processes between jurisdictions, progressively publishing more guidance

to help proponents understand and meet the requirements of the EPBC Act, and to

maintain the focus on the increased use of strategic approaches under the EPBC Act.

The recently proposed amendment to the EPBC Act to include water resources as a

new matter of national environmental significance, which passed the House of

Representatives on 21 March 2013, builds upon the National Partnership Agreement

on Coal Seam Gas and Large Coal Mining and the work of the Independent Expert

Scientific Committee on Coal Seam Gas and Large Coal Mining Development. The

proposed amendments are intended to provide increased protection for water

resources in relation to coal seam gas and large coal mining development.

DSEWPaC also continues to ensure international and domestic wildlife trade and

heritage conventions, intergovernmental agreements and obligations are fulfilled,

including improved administration of the EPBC Act, the Historic Shipwrecks Act 1976,

the Sea Dumping Act 1981 (Sea Dumping Act), and the Environment Protection (Alligator

Rivers Region) Act 1978. The protection of the Alligator Rivers Region from the impact

of uranium mining continues to be a priority.


66

A key deliverable during 2013–14 will be to support the identification, conservation

and promotion of heritage places important to Aboriginal and Torres Strait Islander

people, and assisting owners and managers of nationally significant historic heritage

sites to maintain and conserve the heritage values of those sites.




67


2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 5.1: Conservation of Australia's Heritage and

Environment








Program 5.2: Environmental Regulation


Ordinary annual services (Appropriation Bill No. 1) - 751

Other services (Appropriation Bill No. 2) 800 800









Other services (Appropriation Bill No. 2) 800 800






2012-13 2013-14


Outcome 5: Increased protection, awareness and

appreciation of Australia’s environment and heritage

through regulating matters of national environmental

significance and the identification, conservation and

celebration of natural, indigenous and historic places of

national and World Heritage significance

1 Outcome 5 has a departmental budget of $3.595 million in 2013–14.




68


Program 5.1: Conservation of Australia’s Heritage and Environment

Program Objective

To conserve natural, Indigenous and historic heritage, threatened species and

ecological communities, and internationally traded flora and fauna and related

biodiversity consistent with the EPBC Act and international obligations.

Protection of heritage, species and ecological communities - compliance with

statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander

Heritage Protection Act 1984 and Historic Shipwrecks Act 1976.

International fora - shape international wildlife trade and heritage matters

through strategic engagement in international fora.

Kokoda Initiative - provision of leadership through the implementation of the

Kokoda Initiative Annual Works Plan 2013 under the Second Joint

Understanding 2010–2015 between Papua New Guinea (PNG) and Australia on

the Owen Stanley Ranges, Brown River Catchment and Kokoda Track Region.

Program Expenses


termination of the Community Heritage Grants – establishment measure, a decrease

in Section 31 revenue and a change in the funding profile for the EPBC Act –

implementation of reforms package.



redundancy program.

http://www.comlaw.gov.au/comlaw/Legislation/ActCompilation1.nsf/0/55E0993527F830A3CA256FD5001F69E0?OpenDocument

http://www.comlaw.gov.au/comlaw/Legislation/ActCompilation1.nsf/0/55E0993527F830A3CA256FD5001F69E0?OpenDocument


69

Program Expenses 5.1: Conservation of Australia's Heritage and Environment

2012-13 2013-14 2014-15 2015-16 2016-17



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


Heritage Grants 7,420 4,420 4,420 4,420 4,420

National Trusts Partnership Program 927 927 927 927 927

Indigenous Heritage Program 3,645 3,645 3,645 3,645 3,645

Protection of the Kokoda Track and

Region - Australian Government

support to PNG 1 - - - - -




the Budget year:



Other 3 64 64 69 69 75

Total program expenses 56,454 48,905 51,575 49,807 49,489 1 The Kokoda Initiative will continue from 2012–13 to 2015–16 with funding of up to $12.5 million to be met

from existing resources within the Australian Agency for International Development. 2 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services.



70


Identification – identifying places of special value in Australia that should be

recognised and protected through inclusion on the World, and National

Heritage Lists. Identifying nationally threatened species and ecological

communities that should be recognised and protected through listing under the

EPBC Act, and native and exotic flora and fauna that should be allowed or

prevented from import or export to and from Australia.

Management – providing Commonwealth oversight on effective management

of World, National and Commonwealth Heritage places; and providing targeted

funding to support the conservation and interpretation of Australia’s special

historic, Indigenous, natural and underwater values. Respond to World

Heritage Committee requests. Assisting the management of threatened species

and ecological communities through developing, identifying and prioritising

on-ground management and research actions for inclusion in conservation

advices, recovery plans, wildlife management plans and threat abatement plans,

promoting their on-ground implementation, and providing targeted funding for

a small number of high priority species and threat abatement activities.

Protection – protection of heritage values, of historic shipwrecks and associated

relics; and places or objects with Indigenous heritage value that may be under

significant threat. Protection of Australia’s biodiversity through regulating the

export and import of plants and animals. Providing information to regulators,

land owners, managers and others to allow the effective protection and

conservation of the wildlife matters through the Species Profile and Threats

database, referral guidelines, farmers fact sheets, recovery plans, and listing and

conservation advice.

Leadership – providing high level, strategic advice on heritage matters;

advising on standards for best practice management of Australia’s significant

heritage values and places; providing practical assistance to Papua New Guinea

and other pacific island countries to protect heritage places in our region, and

sharing knowledge with the international community.

Celebration – recognising and communicating how heritage values enrich our

lives and the Australian culture; providing opportunities for communities,

industry and organisations to celebrate Australia’s heritage, including the places

and events that contribute to our national identify; and enabling participation in

the conservation and management of heritage values and places.


71


Protection of heritage, species and ecological communities

Compliance with statutory obligations under the EPBC Act, the Aboriginal and

Torres Strait Islander Heritage Protection Act 1984 and the Historic Shipwrecks Act

1976. These obligations relate to the:

o provision of advice for statutory decisions relating to matters of national environmental significance, Aboriginal and Torres Strait Islander sacred sites and objects, historic shipwrecks and wildlife;

o provision of advice on areas of particular significance to Aboriginal and Torres Strait Islander people;

o completion of recovery plans and conservation advice on threatened species and ecological communities;

o issuing of wildlife trade permits, and assessment of wildlife trade and shipwreck management plans/operations/agreements;

o assessment of applications to amend the Live Import List; and o inclusion of places, species, ecological communities and key threatening

processes in statutory lists in accordance with the finalised priority assessment lists and assessments by the Threatened Species Scientific Committee and the Australian Heritage Council.

International fora

The outcomes of international fora on wildlife trade and heritage matters reflect

the high level strategic advice and leadership provided by Australia, contribute

to Australia’s international reputation, and assists with the achievement of

legislated/desired environmental outcomes.

Kokoda Initiative

Implementation of the Second Joint Understanding for sustainable development

of the Kokoda Track Region and protection of its special values including:

o an open track with no reported closures along the 96kms of track in the Interim Protection Zone for 365 days a year;

o an authentic and well managed track that is accessed by more than 3500 trekkers a year; and

o a safe track where the Kokoda Track Authority is supported to effectively manage known hazards along the 96 km of track in the Interim Protection Zone.


72

Program 5.2: Environmental Regulation

Program Objectives

Provide for the protection of the environment, in particular matters of national

environmental significance;

Administer environmental regulation under the EPBC Act and the Sea Dumping

Act;

Improve the delivery of regulatory services under the EPBC Act;

Protect the Alligator Rivers Region from the impacts of uranium mining under

the Environment Protection (Alligators Rivers Region) Act 1978;

Improve knowledge and understanding of the environmental effects of uranium

mining in the Alligator Rivers Region through ongoing scientific research and

monitoring;

Promote a cooperative approach to protecting and managing the environment

involving governments, the community, land-holders and Indigenous peoples;

Assist governments, businesses and communities to value biodiversity and

ecosystems and comply with environmental legislation; and

Contribute to regional sustainability (considering social, economic and

environmental aspects) in priority high growth areas through better planning.


73

Program Expenses

The decrease in expenses from 2013–14 to 2014–15 primarily relates to the

Sustainable Australia - Sustainable Regional Development measure.



redundancy program.

Program Expenses 5.2: Environmental Regulation

2012-13 2013-14 2014-15 2015-16 2016-17



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


Remediation of land affected by the Tiw i

Islands Plantation Project - 612 194 194 -

Environment Protection and Biodiversity

Conservation Act - Water Resources

Amendment - 139 259 259 259

Sustainable Australia - Sustainable

Regional Development (SPP) 1 800 800 400 - -




the Budget year:



Other 3 88 93 78 74 78


1 For further Sustainable Australia initiatives refer to Program 2.2 in Table 2.1.2.

2 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services.



74


Implementation of amendments to the EPBC Act and associated policies,

guidelines, standards and procedures.

Develop information and tools to make it easier for stakeholders to comply with

the EPBC Act and the Sea Dumping Act.

Timely assessment, management oversight and advice of individual and

strategic environmental assessments and approvals under the EPBC Act.

Update or develop, as appropriate, bilateral agreements and strategic

assessments with state and territory governments, in accordance with EPBC Act

requirements, to increase the effectiveness of cooperative environmental

protection efforts.

Complete a comprehensive strategic assessment of the Great Barrier Reef World

Heritage Area and adjacent Queensland coastal zone.

Finalise five further strategic assessments under the EPBC Act.

Contribute funding for the implementation of a rehabilitation management plan

to remediate damage to habitat buffer zones associated with the Tiwi Islands

Plantation Project on western Melville Island.

Substantial commencement of at least three Regional Sustainability Plans and

investment in relevant environmental and socio-economic research to underpin

sustainability planning at the local and regional scale.

Develop and review scientifically rigorous and appropriate environmental

performance criteria for the operation, closure and rehabilitation of uranium

mines in the Alligator Rivers Region.

Undertake an annual scientific research program into the environmental

impacts of uranium mining to address key knowledge needs.

Undertake annual biological, chemical and radiological monitoring programs to

ensure the environment remains protected from uranium mining impacts

consistent with statutory requirements.


75


Amendments to the EPBC Act developed.

Number of policies, guidelines, standards and procedures related to the EPBC

Act created or updated, where appropriate.

Percentage of EPBC Act assessments and Sea Dumping Act permits completed

within statutory timelines increased by 10 per cent.

All reported compliance incidents under the EPBC Act and the Sea Dumping

Act are assessed or investigated within statutory timeframes.

All bilateral agreements with state and territory governments reviewed and

updated.

Comprehensive strategic assessment of the Great Barrier Reef World Heritage

Area and adjacent Queensland coastal zone submitted to World Heritage

Committee for consideration at its meeting in 2015.

Completion of five further strategic assessments under the EPBC Act.

Effective monitoring to ensure concentration of uranium in surface water

downstream of Ranger Mine remains less than 6 micrograms per litre.

Annual research and monitoring programs are endorsed by the Alligator Rivers

Region Technical Committee and implemented.

Three new Regional Sustainability Plans and associated research priorities

commenced this year.


76

Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth environmental water.

Outcome 6 Strategy

In 2013–14 the Commonwealth Environmental Water Office (CEWO) will continue to

make decisions on the use of Commonwealth environmental water so it can be

delivered to protect and restore environmental assets in the Murray-Darling Basin.

The CEWO will continue to work with the states and local partners across the

Murray-Darling Basin to plan for the use of environmental water, having regard to the

Basin-wide annual watering priorities determined by the Murray-Darling Basin

Authority, and to identify opportunities to improve the effective and efficient use of

Commonwealth environmental water.

The CEWO will monitor and evaluate the contribution of Commonwealth

environmental water to the environmental objectives of the Murray-Darling Basin

Plan, and will employ local engagement officers, based in communities in key regions

of the Murray-Darling Basin, to work with local communities to inform decisions on

the use of environmental water.




77


2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000




Less Special Account (21,000) (24,533)

Special Accounts

Environmental Water Holdings Special Account 21,000 24,533








Ordinary annual services (Appropriation Bill No. 1) - -







2012-13 2013-14


Outcome 6: Protection and restoration of environmental

assets through the management and use of

Commonwealth environmental water

1 Outcome 6 has a departmental capital budget of $0.323 million in 2013–14




78



Program Objective

Manage the Commonwealth environmental water holdings in accordance with

the Environmental Watering Plan and obligations under the Water Act 2007.

Ensure maximum environmental outcomes are achieved with available water

through efficient and effective management and use of the Commonwealth

environmental water portfolio.

Improve transparency, accountability and stakeholder engagement in the

management of Commonwealth environmental water.

Linked to:

Program 4.1 Water Reform

Program Expenses



redundancy program.


79

Program Expenses 6.1: Commonwealth Environmental Water

2012-13 2013-14 2014-15 2015-16 2016-17



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


Commonw ealth Environmental Water

Office 21,000 24,533 26,226 28,021 29,160

Less Special Accounts:

Environmental Water Holdings

Special Account (21,000) (24,533) (26,226) (28,021) (29,160)


Environmental Water Holdings

Special Account 21,000 24,533 26,226 28,021 29,160




in the Budget year:



Other 2 20 20 15 15 15


1 Includes Other Revenue in addition to Appropriation and Sale of Goods and Services.



80


The Commonwealth Environmental Water Office will work with the

Murray-Darling Basin Authority (MDBA), the states, communities and industry to

deliver environmental water to protect or restore environmental assets including

rivers, wetlands and floodplains in accordance with the Environmental Watering

Plan of the Murray-Darling Basin Plan (the Basin Plan). In 2013–14 and onwards,

Commonwealth Environmental Water will:

plan and manage Commonwealth environmental water, having regard to Basin-

wide annual priorities and views of local communities;

participate in a coordinated planning process with environmental water

partners, including local advisory groups, catchment management bodies, state

agencies, river operators and the MDBA, to identify how Commonwealth

environmental water is best used;

develop and publish annual water use options to guide environmental water

priorities in 2013–14;

collaborate and implement arrangements with delivery partners to deliver

environmental water to agreed priority environmental assets, having regard to

the Basin-wide annual watering priorities;

identify opportunities for more efficient and effective use of environmental

water, such as through changes to infrastructure, accounting rules, river

operations and complementary land and water management;

produce and update Commonwealth environmental water portfolio

management statements to reflect seasonal conditions and environmental

watering needs;

implement a monitoring, evaluation and reporting framework to evaluate the

outcomes from the use of Commonwealth environmental water;

maintain accurate records of Commonwealth environmental water holdings,

use, carryover and trade;

further develop the approach to managing the portfolio of Commonwealth

environmental water assets including strategies for carryover and trade of

water;

publish the 2012–13 Commonwealth Environmental Watering Outcomes Report

by January 2014 and demonstrate measureable outcomes from use of

environmental water;

provide information to stakeholders on Commonwealth environmental water

holdings and activities in 2013–14 through the Commonwealth Environmental

Water Holder’s Annual Report, the Commonwealth Environmental Water

Outcomes Reports and other Commonwealth environmental water publications

and communication products; and

increase and strengthen engagement with Basin communities to support


81

effective and efficient use of Commonwealth environmental water;

employ local engagement officers in regional areas of the Murray-Darling Basin

to work with communities on the management of Commonwealth

environmental water.


The Commonwealth Environmental Water Outcomes Report, published during

2013–14, demonstrates effective use of Commonwealth environmental water for

the protection and restoration of environmental assets in accordance with the

requirements of the Murray-Darling Basin Plan.

Monitoring reports that demonstrate outcomes from the use of Commonwealth

environmental water are published throughout 2013–14.

The Commonwealth Environmental Water Office has engaged with local

communities and their stakeholders and has regard to local experience,

knowledge and perspectives when undertaking environmental watering.


82

Section 3: Explanatory Tables and Budgeted Financial Statements

Section 3 presents explanatory tables and budgeted financial statements which provide

a comprehensive snapshot of agency finances for the 2013–14 budget year. It explains

how budget plans are incorporated into the financial statements and provides further

details of the reconciliation between appropriations and program expenses,

movements in administered funds, Special Accounts and government Indigenous

expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of Administered Funds Between Years

Administered funds can be provided for a specified period, for example under annual

Appropriation Acts. Funds not used in the specified period with the agreement of the

Finance Minister may be moved to a future year. Table 3.1.1 shows the movement of

administered funds approved between years.

Table 3.1.1: Movement of Administered Funds Between Years1

2012-13 2013-14 2014-15 2015-16 2016-17

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

Appropriation Bill 1:

Outcome 4:

Restoring the Balance in the Murray (1,700) - - - -

Darling Basin 2

Outcome 5:

Remediation of land affected by the

Tiw i Islands Plantation Project (318) 318 - - -

Appropriation Bill 2 - SPP:

Outcome 4:

National Urban Water and (2,550) (5,050) 5,500 2,100 -

Desalination Plan

Total Movement of

Administered Funds (4,568) (4,732) 5,500 2,100 -

1 Figures displayed as negative (-) represent a decrease in funds and positive reflects an increase in funds.

2 Also includes a movement of $0.850 million into 2017–18 and $0.850 million into 2018–19


83

3.1.2 Special Accounts

Special Accounts provide a means to set aside and record amounts used for specified

purposes. Special Accounts can be created by a Finance Minister’s Determination

under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the

expected additions (receipts) and reductions (payments) for each account used by the

Department of Sustainability, Environment, Water, Population and Communities.

Table 3.1.2: Estimates of Special Account Flows and Balances

Opening Closing

balance Receipts Payments Adjustments balance

2013-14 2013-14 2013-14 2013-14 2013-14

2012-13 2012-13 2012-13 2012-13 2012-13

Outcome $'000 $'000 $'000 $'000 $'000

Natural Heritage Trust of 1 407,068 317,498 (283,009) - 441,557

Australia Account (A) 1 385,868 183,722 (162,522) - 407,068

Ozone Protection and SGG 2 21,753 10,201 (11,933) - 20,021

Account (A) 2 22,984 10,554 (11,785) - 21,753

Services for Other Entities and 4 1,480 510 (510) - 1,480

Trust Moneys Special Account (A) 3 1,480 510 (510) - 1,480

Water Eff iciency Labelling and 4 4,493 1,910 (1,910) - 4,493

Standards Account (A) 4 4,493 1,850 (1,850) - 4,493

Environmental Water Holdings 6 27,699 27,433 (24,533) - 30,599

Special Account (A) 5 23,999 24,700 (21,000) - 27,699

Water for the Environment 4 - - - - -

Special Account (A) 6 - - - - -

Total Special Accounts

2013-14 Budget estimate 462,493 357,552 (321,895) - 498,150


2012-13 estimated actual 438,824 221,336 (197,667) - 462,493

(A) = Administered 1 Natural Heritage Trust of Australia Account - s21 FMA Act [Natural Heritage Trust of Australia Act 1997].

2 Ozone Protection and SGG Account - s21 FMA Act [Ozone Protection and Synthetic Greenhouse Gas

Management Act 1989]. 3 Services for Other Entities and Trust Moneys Special Account - s20 FMA Act Det 2010/02

4 Water Efficiency Labelling and Standards Account - s21 FMA Act [Water Efficiency Labelling and

Standards Act 2004] 5 Environmental Water Holdings Special Account - s21 FMA Act [Water Act 2007]

6 Water for the Environment Special Account - s20 FMA Act [Water Act 2007]. The account is credited with a

profiled special appropriation with annual amounts for a specified number of years, commencing in 1 July 2014.


84

3.1.3 Australian Government Indigenous Expenditure

Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)

Outcome Other Total Program

Bill Bill Special Total

No. 1 No. 2 approp approp

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

DSEWPaC

Outcome 1

Administered 2013-14 76,681 - - 76,681 - 76,681 1.1

Administered 2012-13 77,774 - - 77,774 - 77,774 1.1

Departmental 2013-14 300 - - 300 - 300 1.1

Departmental 2012-13 315 - - 315 - 315 1.1

Total outcome 2013-14 76,981 - - 76,981 - 76,981

Total outcome 2012-13 78,089 - - 78,089 - 78,089

Outcome 5

Administered 2013-14 3,645 - - 3,645 - 3,645 5.1

Administered 2012-13 3,645 - - 3,645 - 3,645 5.1

Departmental 2013-14 268 - - 268 - 268 5.1

Departmental 2012-13 268 - - 268 - 268 5.1

Total outcome 2013-14 3,913 - - 3,913 - 3,913

Total outcome 2012-13 3,913 - - 3,913 - 3,913

Total administered 2013-14 80,326 - - 80,326 - 80,326

Total administered 2012-13 81,419 - - 81,419 - 81,419

- --

Total departmental 2013-14 568 - - 568 - 568

Total departmental 2012-13 583 - - 583 - 583

Total AGIE 2013-14 80,894 - - 80,894 - 80,894

Total AGIE 2012-13 82,002 - - 82,002 - 82,002

Appropriations


85

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in Agency Resourcing and Financial Statements

There are no differences between the agency resourcing table 1.1 and financial

statements.

3.2.2 Analysis of Budgeted Financial Statements

Budgeted departmental comprehensive income statement

Changes in appropriation revenue are the net result of new measures announced since

the 2012–13 Portfolio Additional Estimates Statements, reallocation of funding to the

Murray-Darling Basin Authority from the Driving Reform in the Basin program and

adjustments relating to prior years. The new measures encompass expense and saving

measures and are outlined in Table 1.2.

Overall, there has been realignment between expense items (employee, supplier and

grant expenses) to better reflect the expected expenditure patterns across the forward

estimates. This realignment has resulted in a minimal difference in total expenses in

the budget estimates.

The increase in total expenses compared with the 2012–13 Portfolio Additional

Estimates Statements are the net result of the new measures and the impact of

DSEWPaC’s 2012–13 voluntary redundancy program. The voluntary redundancies

increase employee expenses in 2012–13.

The DSEWPaC’s operating loss reflects anticipated voluntary redundancies, the

provision for make-good for the Australian Antarctic Division and depreciation and

amortisation expenses.

Additionally, transfer funding, which reflects the funding transferred to the Director of

National Parks, is reported separately from grant expenditure to ensure consistency

between Portfolio Budget Statement reporting and Financial Statement reporting in the

Annual Report.

Budgeted departmental balance sheet

Changes in the departmental balance sheet since the 2012–13 Portfolio Additional

Estimates Statements reflect the estimated impact of the 2012–13 voluntary

redundancy program on receivables and employee provisions.

The increase in make-good provisions over the forward estimates relates to the obligation on the Department for the removal and site restoration of buildings and infrastructure located in Antarctica and on sub-Antarctic Macquarie Island, and to remediate past waste disposal sites and areas of ground contamination for which the Commonwealth is responsible. These make-good provisions are calculated using a net present value methodology. This requires that each year the provision be increased by


86

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 DSEWPaC. Funding will not be provided to DSEWPaC until such time as payments are required to be made, which is beyond the forward estimates.

Schedule of budgeted income and expenses administered on behalf of Government

Changes in administered revenue are the net result of the new measures outlined in

Table 1.2 and a reduction in forecast revenue for the Synthetic Greenhouse Gases

Equivalent Carbon Price program.

The changes in administered expenses are the net result of:

New measures announced since the 2012–13 Portfolio Additional Estimates

Statements. The new measures encompass both expense and savings measures and

are outlined in Table 1.2.

Movements of administered funds between years approved by the Minister for

Finance and Deregulation since the 2012–13 Portfolio Additional Estimates

Statements. Movements of administered funds are outlined in Table 3.1.1.

Estimated underspends in 2012–13 in grant payments under the Sustainable Rural

Water Use and Infrastructure program.

The transfer of administered funding to the Department of the Treasury Council of

Australian Governments Reform Fund to provide for payments to be made under

the Federal Financial Relations Act 2009 for the Water Reform program.

Schedule of budgeted assets and liabilities administered on behalf of Government

Changes to administered taxation receivables reflect an update to the profiles of

collecting revenue for the Synthetic Greenhouse Gases Equivalent Carbon Price

program.

There are no other significant movements.


87

Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)

Estimated Budget Forw ard Forw ard Forw ard

actual estimate estimate estimate estimate

2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES

Employee benefits 273,089 254,209 239,883 235,529 215,031

Supplier expenses 223,865 217,438 174,893 175,483 172,464

Grant expenses 4,545 4,498 4,500 4,333 6,901

Transfer funding 40,170 41,497 41,587 41,779 42,002


Finance costs 15,880 15,880 15,880 15,880 15,880

Other 428 397 396 396 396

Total expenses 600,172 576,120 519,869 516,148 495,422

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 90,265 78,243 59,711 59,028 57,406

Other - 13,100 940 2,164 1,646

Total own-source revenue 90,265 91,343 60,651 61,192 59,052

Gains

Other 641 641 641 641 659

Total gains 641 641 641 641 659

Total own-source income 90,906 91,984 61,292 61,833 59,711

Net cost of (contribution by)

services 509,266 484,136 458,577 454,315 435,711

Revenue from Government 436,191 426,055 399,967 395,687 377,083

Surplus (Deficit) attributable to

the Australian Government (73,075) (58,081) (58,610) (58,628) (58,628)

OTHER COMPREHENSIVE INCOME

Total other comprehensive income - - - - -

Total comprehensive income (loss) (73,075) (58,081) (58,610) (58,628) (58,628)

Total comprehensive income (loss)

attributable to the Australian

Government (73,075) (58,081) (58,610) (58,628) (58,628)


88

Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June) (continued) Note: Impact of Net Cash Appropriation Arrangements



2012-13 2013-14 2014-15 2015-16 2016-17

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

Total comprehensive income

(loss) less depreciation/amortisation

expenses previously funded through

revenue appropriations (30,880) (15,880) (15,880) (15,880) (15,880)

plus depreciation/amortisation expenses

previously funded through revenue

appropriations 1 42,195 42,201 42,730 42,748 42,748


(loss) - as per the Statement of

Comprehensive Income (73,075) (58,081) (58,610) (58,628) (58,628)

Prepared on Australian Accounting Standards basis. 1 From 2010–11, the Government introduced net cash appropriation arrangements where Appropriation Bill 1

revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


89

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)



2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets

Cash and equivalents 2,475 5,134 5,134 5,134 5,134

Trade and other receivables 56,089 53,430 53,430 53,430 53,430

Accrued revenue 3,842 3,842 3,842 3,842 3,842

Total financial assets 62,406 62,406 62,406 62,406 62,406

Non-financial assets

Land and buildings 256,612 245,612 234,521 222,829 211,202

Property, plant and equipment 112,321 102,927 90,064 77,851 65,755

Intangibles 23,921 29,287 37,298 43,348 49,755

Inventories 7,754 7,754 7,754 7,754 7,754

Other 5,721 5,721 5,721 5,721 5,721

Total non-financial assets 406,329 391,301 375,358 357,503 340,187

Total assets 468,735 453,707 437,764 419,909 402,593

LIABILITIES

Payables

Suppliers 21,581 21,581 21,581 21,581 21,581

Grants 923 923 923 923 923

Other 18,299 18,299 18,299 18,299 18,299

Total payables 40,803 40,803 40,803 40,803 40,803

Interest bearing liabilities

Leases 5,052 5,052 5,052 5,052 5,052

Total interest bearing liabilities 5,052 5,052 5,052 5,052 5,052

Provisions

Employee provisions 68,947 68,947 68,947 68,947 68,947

Antarctic make good provisions 1 437,037 452,917 468,797 484,677 500,557

Other 6,506 6,506 6,506 6,506 6,506

Total provisions 512,490 528,370 544,250 560,130 576,010

Total liabilities 558,345 574,225 590,105 605,985 621,865

Net assets/(liabilities) 1 (89,610) (120,518) (152,341) (186,076) (219,272)


90

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) (continued)



2012-13 2013-14 2014-15 2015-16 2016-17

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

EQUITY

Parent entity interest

Contributed equity 49,659 76,832 103,619 128,512 153,944

Reserves 272,674 272,674 272,674 272,674 272,674

Retained surplus

(accumulated deficit) (411,943) (470,024) (528,634) (587,262) (645,890)

Total parent entity interest (89,610) (120,518) (152,341) (186,076) (219,272)

Total equity (89,610) (120,518) (152,341) (186,076) (219,272)

Prepared on Australian Accounting Standards basis. 1 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.


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Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2013-14)

Retained Asset Contributed Total

earnings revaluation equity/ equity

reserve capital

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

Opening balance as at 1 July 2013

Balance carried forw ard from

previous period (411,943) 272,674 49,659 (89,610)

Adjustment for changes in

accounting policies - - - -

Adjusted opening balance (411,943) 272,674 49,659 (89,610)

Comprehensive income

Surplus (deficit) for the period (58,081) - - (58,081)

Total comprehensive income (58,081) - - (58,081)

of w hich:

Attributable to the Australian Government (58,081) - - (58,081)

Transactions with owners

Distributions to owners

Appropriation (equity injection) - - 2,467 2,467

Departmental Capital Budget (DCB) - - 24,706 24,706

Sub-total transactions with owners - - 27,173 27,173

Estimated closing balance

as at 30 June 2014 (470,024) 272,674 76,832 (120,518)

Less: non-controlling interests

Closing balance attributable to the

Australian Government (470,024) 272,674 76,832 (120,518) Prepared on Australian Accounting Standards basis.


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Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)



2012-13 2013-14 2014-15 2015-16 2016-17

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

OPERATING ACTIVITIES

Cash received

Goods and services 90,265 78,243 59,711 59,028 57,406

Appropriations 458,198 428,714 399,967 395,687 377,083

Other - 13,100 940 2,164 1,646

Total cash received 548,463 520,057 460,618 456,879 436,135

Cash used

Employees 283,089 254,209 239,883 235,529 215,031

Suppliers 223,224 216,797 174,252 174,842 171,805

Grants 4,545 4,498 4,500 4,333 6,901

Transfer funding 40,170 41,497 41,587 41,779 42,002

Other 428 397 396 396 396

Total cash used 551,456 517,398 460,618 456,879 436,135

Net cash from (used by)

operating activities (2,993) 2,659 - - -

INVESTING ACTIVITIES

Cash received

Total cash received - - - - -

Cash used

Purchase of property, plant and

equipment and intangibles 25,351 27,173 26,787 24,893 25,432

Total cash used 25,351 27,173 26,787 24,893 25,432


investing activities (25,351) (27,173) (26,787) (24,893) (25,432)

FINANCING ACTIVITIES

Cash received



Cash used

Total cash used - - - - -


financing activities 25,351 27,173 26,787 24,893 25,432

Net increase (decrease)

in cash held (2,993) 2,659 - - -

Cash and cash equivalents at the

beginning of the reporting period 5,468 2,475 5,134 5,134 5,134


end of the reporting period 2,475 5,134 5,134 5,134 5,134

Prepared on Australian Accounting Standards basis.


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Table 3.2.5: Departmental Capital Budget Statement



2012-13 2013-14 2014-15 2015-16 2016-17

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

NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 23,479 24,706 24,042 24,248 24,487

Equity injections - Bill 2 1,872 2,467 2,745 645 945

Total new capital appropriations 25,351 27,173 26,787 24,893 25,432

Provided for:

Purchase of non-financial assets 25,351 27,173 26,787 24,893 25,432

Total Items 25,351 27,173 26,787 24,893 25,432

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriations 1 1,872 2,467 2,745 645 945

Funded by capital appropriation - DCB 2 23,479 24,706 24,042 24,248 24,487

TOTAL 25,351 27,173 26,787 24,893 25,432

RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLE

Total purchases 25,351 27,173 26,787 24,893 25,432

Total cash used to

acquire assets 25,351 27,173 26,787 24,893 25,432

Prepared on Australian Accounting Standards basis. 1 Includes both current and prior Appropriation Bill 2 and 4 appropriations.

2 Does not include annual finance lease costs. Includes purchases funded by current and previous years

Departmental Capital Budgets.

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Table 3.2.6: Statement of Asset Movements (2013-14) Land Buildings Other property, Intangibles Total

plant and

equipment

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

As at 1 July 2013

Gross book value 1,087 307,759 160,154 45,486 514,486

Accumulated depreciation/amortisation

and impairment - (52,234) (47,833) (21,565) (121,632)

Opening net book balance 1,087 255,525 112,321 23,921 392,854

CAPITAL ASSET ADDITIONS

Estimated expenditure on

new or replacement assets

By purchase - appropriation equity 1 - - - 2,467 2,467

By purchase - appropriation ordinary

annual services 2 - 7,402 10,473 6,831 24,706

Total additions - 7,402 10,473 9,298 27,173

Other movements

Depreciation/amortisation expense - (18,402) (19,867) (3,932) (42,201)

Other - - - - -

Total other movements - (18,402) (19,867) (3,932) (42,201)

As at 30 June 2014

Gross book value 1,087 315,161 170,627 54,784 541,659


and impairment - (70,636) (67,700) (25,497) (163,833)

Closing net book balance 1,087 244,525 102,927 29,287 377,826 Prepared on Australian Accounting Standards basis. 1 "Appropriation equity" refers to equity injections provided through Appropriation Bill (No.2) 2013-14.

2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for DCBs.


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Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)



2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES ADMINISTERED ON

BEHALF OF GOVERNMENT


Grants 706,372 851,403 923,642 1,337,926 1,082,757

Other - 1,192 991 5,183 4,983

Total expenses administered

on behalf of Government 749,333 903,932 978,292 1,402,023 1,142,750

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other 121,120 191,099 201,122 51,145 91,498

Total taxation revenue 121,120 191,099 201,122 51,145 91,498

Non-taxation revenue

Sale of goods and rendering

of services 1,850 1,910 1,960 2,020 -

Fees and fines 9,549 9,324 23,151 27,674 19,923

Interest 741 525 285 97 38

Other 1,798 2,798 1,798 1,798 17,055

Total non-taxation revenue 13,938 14,557 27,194 31,589 37,016

Total own-source revenues

administered on behalf of

Government 135,058 205,656 228,316 82,734 128,514

Total own-sourced income


Government 135,058 205,656 228,316 82,734 128,514

Net Cost of (contribution by)

services 614,275 698,276 749,976 1,319,289 1,014,236

Surplus (Deficit) (614,275) (698,276) (749,976) (1,319,289) (1,014,236)


Total other comprehensive

income- - - - -


(loss) (614,275) (698,276) (749,976) (1,319,289) (1,014,236)



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Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)



2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets

Cash and cash equivalents - - - - -

Receivables 24,005 21,670 19,360 18,574 16,239

Taxation receivables 35,000 45,000 45,000 15,000 25,000

Other investments 570,761 570,761 570,761 570,761 570,761





Heritage and cultural assets 1,060 1,060 1,060 1,060 1,060

Inventories 11,896 11,896 11,896 11,896 11,896

Intangibles 2,064,309 2,168,641 2,349,519 2,603,320 2,908,863

Total non-financial assets 2,569,719 2,674,051 2,854,929 3,108,730 3,414,273

Total assets administered

on behalf of Government 3,199,485 3,311,482 3,490,050 3,713,065 4,026,273

LIABILITIES

Payables

Suppliers 8,715 8,715 8,715 8,715 8,715

Grants 33,334 33,334 33,334 33,334 33,334

Total payables 42,049 42,049 42,049 42,049 42,049

Total liabilities administered

on behalf of Government 42,049 42,049 42,049 42,049 42,049

Net assets/(liabilities) 3,157,436 3,269,433 3,448,001 3,671,016 3,984,224



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Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)



2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Sales of goods and rendering

of services 1,850 1,910 1,960 2,020 -

Fees and f ines 9,549 9,324 23,151 27,674 19,923

Interest 741 525 285 97 38

Taxes 86,120 181,099 201,122 81,145 81,498

Other 1,798 2,798 1,798 1,798 17,055


Cash used

Suppliers 92,961 47,837 50,159 55,414 58,610

Grant payments 652,871 851,403 923,642 1,337,926 1,082,757

Other - 1,192 991 5,183 4,983

Total cash used 745,832 900,432 974,792 1,398,523 1,146,350


operating activities (645,774) (704,776) (746,476) (1,285,789) (1,027,836)


Cash received

Repayments of advances

and loans 2,118 2,335 2,310 786 340

Total cash received 2,118 2,335 2,310 786 340

Cash used

Purchase of property, plant,

equipment and intangibles 121,680 104,332 180,878 253,801 305,543

Total cash used 121,680 104,332 180,878 253,801 305,543



Net increase (decrease) in

cash held (765,336) (806,773) (925,044) (1,538,804) (1,333,039)

Cash and cash equivalents at

beginning of reporting period - - - - -

Cash from Official Public Account for:

- Appropriations 673,346 686,369 837,572 1,280,407 1,105,995

- Special Accounts 187,222 310,442 310,282 358,002 334,233

860,568 996,811 1,147,854 1,638,409 1,440,228

Cash to Official Public Account for:

- Appropriations 91,475 187,582 219,887 99,605 107,189

- Special Accounts 3,757 2,456 2,923 - -

95,232 190,038 222,810 99,605 107,189


end of reporting period - - - - -



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Table 3.2.10: Schedule of Administered Capital Budget Statement



2012-13 2013-14 2014-15 2015-16 2016-17

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


Administered Assets and

Liabilities - Bill 2 162,180 6,261 442,610 175,638 489,955


Provided for:


Total Items 162,180 6,261 442,610 175,638 489,955


ASSETS

Funded by capital appropriations 1 121,680 104,332 180,878 253,801 305,543

TOTAL AMOUNT SPENT 121,680 104,332 180,878 253,801 305,543




Total accrual purchases 121,680 104,332 180,878 253,801 305,543

Total cash used to

acquire assets 121,680 104,332 180,878 253,801 305,543

Prepared on Australian Accounting Standards basis. 1 Includes funding from both current and prior appropriations.

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Table 3.2.11: Statement of Administered Asset Movements (2013-14)

Land Other property, Heritage and Intangibles Total

plant and cultural assets

equipment

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

As at 1 July 2013

Gross book value 1,467 490,987 1,060 2,064,309 2,557,823

Opening net book balance 1,467 490,987 1,060 2,064,309 2,557,823


Estimated expenditure on new or

replacement assets

By purchase - appropriation equity 1 - - - 104,332 104,332

Total additions - - - 104,332 104,332

As at 30 June 2014

Gross book value 1,467 490,987 1,060 2,168,641 2,662,155

Closing net book balance 1,467 490,987 1,060 2,168,641 2,662,155

Prepared on Australian Accounting Standards basis. 1 "Appropriation equity" refers to Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2013-14.

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BUREAU OF METEOROLOGY

Section 1: Agency Overview and Resources ......................................................... 105

1.1 Strategic Direction Statement ....................................................................... 105 1.2 Agency Resource Statement ........................................................................ 107 1.3 Budget Measures .......................................................................................... 108

Section 2: Outcomes and Planned Performance ................................................... 110

2.1 Outcomes and Performance Information ...................................................... 110

Section 3: Explanatory Tables and Budgeted Financial Statements ................... 115

3.1 Explanatory Tables ....................................................................................... 115

3.2 Budgeted Financial Statements .................................................................... 116

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BUREAU OF METEOROLOGY



The Bureau of Meteorology (the Bureau) provides Australians with the environmental

intelligence they need to manage and live within their natural environment,

encompassing the atmosphere, oceans, water and land. To achieve this, the Bureau:

provides forecasts, warnings and long-term outlooks on weather, climate, water

and other environmental phenomena;

monitors and reports on current environmental conditions;

analyses and explains trends in environmental data; and

fosters greater public understanding and use of environmental intelligence.

Under its Strategic Plan 2010–15, the Bureau will continue to refine its range of

products and services and improve accessibility to better meet the needs of

Australians, increasing the contribution it makes to their safety, sustainability, well-

being and prosperity by:

designing and delivering products and services to maximise the value to Australia;

pursuing operational improvements to continue to deliver efficient and effective

outcomes;

closely engaging with stakeholders, including governments, industry and the

community, to better inform the Bureau’s priorities and activities;

creating and maintaining a high-performing and diverse workforce, with a culture

of innovation and service, and a workplace that keeps staff safe and fulfilled

professionally;

modernising and extending the capability of operational infrastructure, including

information and communication technologies, observing systems and facilities;

and

extending its understanding of, and ability to forecast, Australia’s climate, land

and water resources and the ecosystems that depend on them.

The Bureau’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. The Bureau’s program of activities is facilitated by

supporting functions including information technology, research and development,

data systems, and corporate and business units.

Bureau of Meteorology Budget Statements

106

The Bureau faces a number of challenges as the demand for its services continues to

rise. The increasing incidence and severity of extreme weather events in Australia,

along with greater community awareness of the risks, is stretching the Bureau’s ability

to respond to the expectations of stakeholders and users. As the community’s

preference for receiving information via the internet and mobile communication

devices continues to grow, the Bureau must look at delivering products and services in

new ways that build on and enhance its current service access for all Australians. The

Bureau must also carefully manage its information communication technology and

infrastructure assets to ensure they continue to effectively support the delivery of

frontline services.

From 1 July 2013, the Bureau will host commercial advertising on its website on a

permanent basis, with revenue from this measure to support essential services.

Major continuing initiatives in 2013–14 include the further rollout of the Next

Generation Weather Forecast and Warning System which, by 2015, will provide seven-

day weather forecasts for more than 650 locations across Australia, bringing the level

of weather forecasting service for towns and regional centres in line with capital cities.

Other major initiatives include the Strategic Radar Enhancement Project, improving

Water Information under the Water for the Future program, and building capability

through the National Plan for Environmental Information initiative. The Bureau will

continue its efforts towards modernisation and automation of its observing

infrastructure, with a strategic focus on building greater resilience and sustainability in

all of its operations.


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classification.

Table 1.1: Bureau of Meteorology Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013

Estimate Proposed Total Actual

of prior at Budget estimate available

year amounts appropriation

available in

2013-14 2013-14 2013-14 2012-13

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

Ordinary annual services1

Departmental appropriation

Prior year departmental appropriation2 76,634 - 76,634 78,424

Departmental appropriation3 - 255,119 255,119 251,657

s31 Relevant agency receipts4 - 75,408 75,408 72,025

Total 76,634 330,527 407,161 402,106

Total ordinary annual services A 76,634 330,527 407,161 402,106

Other services5

Departmental non-operating

Equity injections - 14,592 14,592 8,984

Total - 14,592 14,592 8,984

Total other services B - 14,592 14,592 8,984

Total available annual

appropriations 76,634 345,119 421,753 411,090

Total appropriations excluding

Special Accounts 76,634 345,119 421,753 411,090

Total resourcing

A+B 76,634 345,119 421,753 411,090

Total net resourcing for Bureau

of Meteorology 76,634 345,119 421,753 411,090 1 Appropriation Bill (No.1) 2013–14

2 Estimated adjusted balance carried forward from previous year

3 Includes an amount of $41.794 million in 2013–14 for the Departmental Capital Budget (refer to table 3.2.5

for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4 s31 Relevant Agency receipts - estimate

5 Appropriation Bill (No.2) 2013–14


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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: Agency 2013-14 Budget measures

Part 1: Measures announced since the 2012-13 MYEFO

Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Revenue measures


- website advertising

Administered revenues 1.1 nfp nfp nfp nfp nfp

Total nfp nfp nfp nfp nfp

Total revenue measures

Administered nfp nfp nfp nfp nfp

Total nfp nfp nfp nfp nfp

Expense measures


- website advertising

Departmental expenses 1.1 - 491 306 279 326

Total - 491 306 279 326


- recommissioning of Tennant Creek

radar

Departmental expenses 1.1 - 197 153 - -

Total - 197 153 - -


Departmental - 688 459 279 326

Total - 688 459 279 326

Capital measures


- recommissioning of Tennant Creek

radar

Departmental Capital - 460 - - -

Total - 460 - - -

Total capital measures

Departmental - 460 - - -

Total - 460 - - - Prepared on a Government Finance Statistics (fiscal) basis.


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Part 2: MYEFO measures not previously reported in a portfolio statement

Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Savings Measures

Targeted Savings - public service 1.1

efficiencies

Departmental (1,128) (1,599) (1,670) (1,653) (684)

Total (1,128) (1,599) (1,670) (1,653) (684)

Total savings measures

Departmental (1,128) (1,599) (1,670) (1,653) (684)

Total (1,128) (1,599) (1,670) (1,653) (684) Prepared on a Government Finance Statistics (fiscal) basis.


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Section 2: Outcomes and Planned Performance








performance indicators and targets used to assess and monitor the performance of the

Bureau of Meteorology in achieving Government outcomes.

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.


Table 2.1 provides an overview of the total expenses for outcome 1 by program.


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Table 2.1: Budgeted Expenses for Outcome 1

Outcome 1: Informed safety, security and economic 2012-13 2013-14

decisions by governments, industry, and the Estimated Estimated

community through the provision of information, actual expenses

forecasts, services and research relating to weather, expenses

climate and water $'000 $'000

Program 1.1: Bureau of Meteorology










2012-13 2013-14

Average Staffing Level (number) 1,519 1,536 1 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and Revenue

from independent sources (s31)". 2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense and

Amortisation Expense.


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Program 1: Bureau of Meteorology

Program Objective

Provide Australians with the information they need to manage and live within their

natural environment, encompassing the atmosphere, oceans, water and land.

Linked to:

Department of Sustainability, Environment, Water, Population and

Communities: Programs: 1.2 – Environmental Information and Research; 3.1 –

Antarctica: Science, Policy and Presence; 4.1 – Water Reform; and 5.2 –

Environmental Regulation

Attorney-General’s Department: Programs 1.2 – Attorney-General’s Department

Operating Expenses – National Security and Criminal Justice; and 1.6 – National

Security and Criminal Justice

Program 1.1 Expenses: Bureau of Meteorology 2012-13 2013-14 2014-15 2015-16 2016-17

Revised Budget Forward Forward Forward

budget year 1 year 2 year 3

('000) $'000 $'000 $'000 $'000 $'000


Departmental Program Support 279,974 286,753 282,718 286,925 300,287


the Budget year 1

64,203 66,447 66,455 67,211 68,108

Total program expenses 344,177 353,200 349,173 354,136 368,395 1

Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense and Amortisation Expense.


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Weather, hydrological, oceanographic, marine, solar, space and atmospheric

observations recorded for use in preparing forecasts, reports, warnings and

other outputs.

Weather, marine, climate and hydrological forecasts provided to the Australian

community and key sectors, including emergency services, aviation, the

Australian Defence Force, mariners, primary producers and water managers.

Warning services that contribute to maintaining the safety of life and property

from severe weather, floods, tropical cyclones, fire, volcanic ash, tsunamis and

space weather disturbances.

Maintenance and provision of information for analysis, research and decision

making, and fostering greater public understanding and use of environmental

intelligence products and services.

Publication of reports and provision of advice to governments, businesses and

the community, including through the National Climate Record.

Collection, interpretation and dissemination of water resource information

including status and patterns of usage reports and forecasts on the future

availability of water resources. Compile and maintain the National Water

Account and issue national water information standards.

Sustained operational capability delivered through scientific and technical

improvements from research and development activities, contributions to

international meteorological programs and effective management and

organisational practices.


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Observations that meet or exceed requirements in terms of accuracy, timeliness,

completeness, coverage and accessibility.

Forecasts that are accurate, used extensively and satisfy users.

Warnings that are accurate, timely and effective in influencing responses to

impending critical events.

Information products and services that are used extensively and satisfy users,

and greater public understanding and awareness of the risks and impact of

severe weather events.

High quality reports and advice that effectively informs and influences analysis,

research and decision making, and satisfies the needs of these stakeholders and

users.

Water resource information reports and forecasts, including the National Water

Account, that meets or exceeds requirements in accuracy, timeliness,

completeness, and the issuing of national water information standards that

satisfy stakeholders and users.

Increased accuracy and capacity of products and services, and high levels of

stakeholder satisfaction, including international stakeholders, from research and

development and international activities, and management and organisational

practices.


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movements in administered funds, special accounts and government Indigenous

expenditure.


3.1.1 Movement of administered funds between years

There are no movement of funds between years for the Bureau.


The Bureau of Meteorology (the Bureau) operates one special account – Services for

other entities and Trust Moneys. There are no movements of Commonwealth funds in

this account.


The 2013–14 Australian Government Indigenous Expenditure Statement is not

applicable because the Bureau has no Indigenous specific expenses.


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3.2.1 Differences in agency resourcing and financial statements

There are no differences between the resource information presented in the Budget

Papers and the Portfolio Budget Statements as a result of differences between

Australian Accounting Standards (AAS) and Government Finance Statistics (GFC).

3.2.2 Analysis of budgeted financial statements

An analysis of the Bureau budgeted financial statements, as reflected in the Bureau's

budgeted departmental financial statements and administered schedules for 2013–14 is

provided below:

Budgeted Departmental Income Statement

Total revenue to the Bureau in 2013–14 is estimated to be $288.7 million, an increase of

$6.8 million from the 2012–13 estimated actual. The change is primarily the result of:

increased funding associated with the 2013–14 Budget measure Recommissioning

the Tennant Creek Radar;

increased funding associated with the 2013–14 Budget measure Website

Advertising on a Permanent Basis;

increased funding associated with the Water for the Future initiative announced in

the 2007–08 Budget;

increased funding for economic parameter adjustments;

increase in the number and quantum of cost recoverable projects and services;

reduced funding as a result of the Efficiency dividend; and

reduced funding as a result of the measure Targeted savings – public service

efficiencies.

Total expenses are estimated to be $353.2 million, an increase of $9.0 million from the

2012–13 estimated actual.

The net increase is due to expenses associated with the measures as detailed above.

Whilst the Bureau is no longer funded for Depreciation through Appropriation Bill 1

the expenditure is still recognised on the Income Statement.


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Budgeted Departmental Balance Sheet

The Bureau’s anticipated budgeted equity position of $353.8 million represents a

decrease of $8.1 million from the 2012–13 estimated actual. The decrease in equity is

attributable to the changed arrangement for Depreciation and replacement Capital

spend funding and change in equity injection funding for New Policy proposals.

The Bureau’s major asset, ‘Infrastructure, Plant and Equipment’, is projected to

decrease by $6.3 million to a total of $280.7 million in 2013–14 due primarily to

increased depreciation expense offsetting the Bureau capital works programme.


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3.2.3 Budgeted Financial Statements Tables

Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June

Estimated Budget Forward Forward Forward


2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES


Suppliers 95,599 95,902 95,553 96,554 103,149


Write-down and impairment of assets 1 1 1 1 1

Other expenses 1,740 1,748 1,745 1,760 1,776

Total expenses 344,177 353,200 349,173 354,136 368,395

LESS:

OWN-SOURCE INCOME

Own-source revenue





services 272,152 277,792 279,133 283,096 296,495

Revenue from Government 209,931 213,325 214,639 217,846 230,348* * * *








Government (62,221) (64,467) (64,494) (65,250) (66,147)

Total Comprehensive Income

(loss) excluding depreciation/amortisation


revenue appropriations. 1,982 1,980 1,961 1,961 1,961

less depreciation/amortisation expenses


appropriations1 64,203 66,447 66,455 67,211 68,108



Comprehensive Income (62,221) (64,467) (64,494) (65,250) (66,147) Prepared on a Government Finance Statistics (fiscal) basis. 1 From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget, the Departmental Capital Budget (DCB) provided through Bill 1 equity appropriations. For information regarding the DCB, please refer to Table 3.2.5 Departmental Capital Budget Statement.


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2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets

Cash and cash equivalents 444 444 444 444 444


Other financial assets 2,367 2,367 2,367 2,367 2,367





Intangibles 33,130 31,094 27,755 24,416 21,077

Inventories 11,519 11,519 11,519 11,519 11,519

Other non-financial assets 6,748 6,748 6,748 6,748 6,748


Total assets 505,749 498,002 476,397 459,216 440,778

LIABILITIES

Payables

Suppliers 18,987 18,987 18,987 18,987 18,987

Other payables 29,711 29,711 29,711 29,711 29,711

Total payables 48,698 48,698 48,698 48,698 48,698

Provisions


Other provisions 17,867 17,867 17,867 17,867 17,867



Net assets 361,851 353,770 337,216 319,285 300,097

EQUITY*



Reserves 93,786 93,786 93,786 93,786 93,786

Retained surplus


Total parent entity interest 361,851 353,770 337,216 319,285 300,097

Total Equity 361,851 353,770 337,216 319,285 300,097 Prepared on a Government Finance Statistics (fiscal) basis.


120


Retained Asset Contributed Total

earnings revaluation equity/ equity

reserve capital

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


Balance carried forward from

previous period (156,019) 93,786 424,084 361,851

Adjusted opening balance (156,019) 93,786 424,084 361,851


Surplus (deficit) for the period (64,467) - - (64,467)

Total comprehensive income (64,467) - - (64,467)


Contributions by owners

Equity Injection - Appropriation - - 14,592 14,592

Departmental Capital Budget (DCBs) - - 41,794 41,794

Sub-total transactions with owners - - 56,386 56,386


as at 30 June 2014 (220,486) 93,786 480,470 353,770


Australian Government (220,486) 93,786 480,470 353,770 Prepared on a Government Finance Statistics (fiscal) basis.


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2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Appropriations 211,721 213,233 219,715 217,096 229,598


Net GST received 8,310 8,310 8,310 8,310 8,310


Cash used

Employees 182,310 188,768 190,480 187,860 194,611

Suppliers 97,329 97,650 97,288 98,314 104,925

Other 4,560 4,560 4,560 4,560 4,560

Total cash used 284,199 290,978 292,328 290,734 304,096


operating activities 7,857 5,973 5,737 5,712 5,712


Cash received

Proceeds from sales of property,

plant and equipment 186 1,225 1,225 1,225 1,225

Total cash received 186 1,225 1,225 1,225 1,225

Cash used

Purchase of property, plant

and equipment 55,002 59,833 51,151 50,505 50,145

Other 3,751 3,751 3,751 3,751 3,751

Total cash used 58,753 63,584 54,902 54,256 53,896




Cash received




financing activities 50,710 56,386 47,940 47,319 46,959


in cash held - - - - -


beginning of the reporting period 444 444 444 444 444


end of the reporting period 444 444 444 444 444 Prepared on a Government Finance Statistics (fiscal) basis.


122

Table 3.2.5: Departmental Capital Budget Statement



2012-13 2013-14 2014-15 2015-16 2016-17

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


Capital budget - Bill 1 (DCB) 41,726 41,794 45,123 45,477 46,285

Equity injections - Bill 2 8,984 14,592 2,817 1,842 674


Provided for:


Total Items 50,710 56,386 47,940 47,319 46,959


ASSETS

Funded by capital appropriations 1

9,414 14,834 2,817 1,842 674

Funded by capital appropriation - DCB 2

43,420 41,794 45,123 45,477 46,285

Funded internally from

departmental resources 3

2,168 3,205 3,211 3,186 3,186

TOTAL 55,002 59,833 51,151 50,505 50,145




Total purchases 55,002 59,833 51,151 50,505 50,145

Total cash used to

acquire assets 55,002 59,833 51,151 50,505 50,145 Prepared on a Government Finance Statistics (fiscal) basis. 1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.

2 Does not include annual finance lease costs. Include purchase from current and previous years’

Departmental Capital Budgets (DCB). 3 Includes the following sources of funding:

– Current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB). – s31 relevant agency receipts (for FMA agencies only) – proceeds from the sale of assets

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Table 3.2.6: Statement of Asset Movements (2013-14) Land Buildings Other property, Heritage Investment Computer L&B, IP&E Other Total

plant and and cultural property software and held for sale

equipment intangibles

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

As at 1 July 2013

Gross book value 13,385 84,635 403,925 - - 91,295 - - 593,240


and impairment - (15,159) (116,887) - - (58,165) - - (190,211)

Opening net book balance 13,385 69,476 287,038 - - 33,130 - - 403,029




By purchase - appropriation equity 1

- - 14,834 - - - - - 14,834


annual services 2

168 5,212 31,938 - - 4,476 - - 41,794

By purchase - other - 1,200 2,005 - - - - - 3,205

Total additions 168 6,412 48,777 - - 4,476 - - 59,833

Other movements

Depreciation/amortisation expense - (4,864) (55,071) - - (6,512) - - (66,447)

Disposals - 1,200 25 - - - - - 1,225

Total other movements - (3,664) (55,046) - - (6,512) - - (65,222)

As at 30 June 2014

Gross book value 13,553 89,847 452,677 - - 95,771 - - 651,848


and impairment - (20,023) (171,958) - - (64,677) - - (256,658)

Closing net book balance 13,553 69,824 280,719 - - 31,094 - - 395,190 Prepared on a Government Finance Statistics (fiscal) basis. 1 "Appropriation equity" refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2013–14, including

CDABs. 2 “Appropriation ordinary annual services” refers to funding provided through Appropriation Bill (No. 1) 2013–14 for depreciation / amortisation expenses, DCBs or

other operational expenses. 3 Net proceeds may be returned to the OPA.

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2012-13 2013-14 2014-15 2015-16 2016-17

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




on behalf of Government - - - - -

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Total taxation revenue - - - - -


Sale of goods and rendering

of services nfp nfp nfp nfp nfp

Total non-taxation revenue - - - - -



Government - - - - -





services - - - - -

Surplus (Deficit) - - - - -

Total comprehensive income (loss) - - - - - Prepared on a Government Finance Statistics (fiscal) basis.

Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June) The schedule of budgeted assets and liabilities administered on behalf of Government does not apply to the Bureau.


125




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Sales of goods and rendering

of services nfp nfp nfp nfp nfp


Cash used



operating activities - - - - -


Cash received



cash held - - - - -


- Appropriations nfp nfp nfp nfp nfp

- Special Accounts

- Transfers to other entities

(Finance - Whole of Government) - - - - -

Cash and cash equivalents at end

of reporting period - - - - - Prepared on a Government Finance Statistics (fiscal) basis.

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Agency resources and planned performance

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DIRECTOR OF NATIONAL PARKS








Director of National Parks Budget Statements

131

DIRECTOR OF NATIONAL PARKS

Section 1: Agency overview and resources


The Director of National Parks (DNP) is a statutory corporation established under the

Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) to

administer and manage Commonwealth reserves (national parks, botanic gardens,

marine and terrestrial reserves) declared under the EPBC Act.

These reserves include: Booderee, Kakadu and Uluru-Kata Tjuta National Parks, which

are each jointly managed with their Aboriginal Traditional Owners; national parks in

the Australian territories of Norfolk, Christmas and Cocos (Keeling) Islands; and the

Australian National Botanic Gardens, which is a major national institution for the

study of Australian plants. Kakadu and Uluru-Kata Tjuta National Parks are World

Heritage listed.

The reserves also include the recently declared Commonwealth marine reserves in the

South West, North West, North and Temperate East marine regions and the Coral Sea.

These reserves, together with the South East marine reserves network and a number of

pre-existing reserves in each region comprise the Commonwealth waters component

of the National Representative System of Marine Protected Areas.

Priority outcomes for the DNP continue to be the conservation and appreciation of the

natural and cultural values of Commonwealth reserves, including the provision of

inspirational, rewarding and safe visitor experiences, the control of invasive species

and working with stakeholders and neighbours. In the jointly managed parks,

improving Indigenous employment and participation in management is also a priority.

The integration of the administration and management of Australia’s marine reserve

network into the business of Parks Australia will be a significant focus in 2013–14

along with the completion of the interpretive signage in Kakadu National Park.

The DNP will continue to improve visitor facilities in reserves and further develop

partnerships with the tourism industry.

To deliver these priorities within the current Government’s fiscal strategy, the DNP

will continue to diversify and increase external revenue, seek further improvements in

the efficiency of resource use, and continue to invest in the skills and capabilities of our

staff.


132

Diagram 1: Location of Commonwealth Parks and Reserves

Note: The Commonwealth marine reserves are managed by the Parks Australia

Division of the Department of Sustainability, Environment, Water, Population and

Communities – outcome 1 refers.


133




classification.

Table 1.1: Director of National Parks Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013




available in

2013-14 2013-14 2013-14 2012-13

Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 36,651 - 36,651 43,689

REVENUE FROM GOVERNMENT

Payments from related entities¹

Amounts from the portfolio department - 41,497 41,497 40,170

Total funds from Government - 41,497 41,497 40,170

FUNDS FROM OTHER SOURCES

Interest - 655 655 786

Sale of goods and services - 14,280 14,280 15,352

Other - 277 277 413

Total - 15,212 15,212 16,551

Total net resourcing for agency 36,651 56,709 93,360 100,410 All figures are GST exclusive The Director of National Parks is not directly appropriated as it is a CAC Act body. Appropriations are made to the

Department of Sustainability, Environment, Water, Population and Communities which are then paid to the Director of National Parks and are considered 'departmental' for all purposes.

¹ Funding provided by a Government body that is not specified within the annual appropriation bills as a payment to the CAC Act body (for example, a fee for service from an FMA Act agency paid to a CAC Act body would appear here and may be explained within this footnote, as would a payment from a third agency's special appropriation).

1.3 BUDGET MEASURES

There are no Budget measures relating to the DNP in 2013–14.


134





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





DNP in achieving Government outcomes.

Outcome 1: Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours

Outcome 1 Strategy

Continue, within the limits of available resources to: systematically repair and replace

essential infrastructure and assets; control priority feral animal and weed species;

provide for safe, inspirational and rewarding visitor experiences; train, develop and

employ directly or indirectly local Indigenous staff; provide safe workplaces; value

and develop staff; manage resources efficiently and transparently; and work closely

with key stakeholders, neighbours and partners to achieve shared objectives.




135

Table 2.1: Budgeted Expenses for Outcome 1 2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 1.1: Parks and Reserves

Revenue from Government

Payment from related entities 40,170 41,497

Revenues from other independent sources 20,451 19,112

Expenses not requiring appropriation in the Budget year 1

9,799 5,617



2012-13 2013-14


Outcome 1: Conservation and appreciation of Commonwealth

reserves through the provision of safe visitor access, the control of

invasive species and working with stakeholders and neighbours

1 Expenses not requiring appropriation consist of depreciation, amortisation expense and an approved

operating loss.


136


Program 1.1: Parks and Reserves

Program objective

The conservation and appreciation of natural and cultural values of Commonwealth

reserves through best-practice management of nationally significant assets, working

with Traditional Owners and stakeholders, providing appropriate recreation and

tourism and improving understanding of the values of reserves.

Program expenses

Movements in total expenses over the forward years primarily reflect changes in

depreciation expenses as a result of an asset revaluation in 2010–11 and revised

estimates of visitor revenue.

Program Expenses 1.1 Parks and Reserves

2012-13 2013-14 2014-15 2015-16 2016-17

Revised Budget Forward Forward Forward


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


Parks and Reserves 60,621 60,609 57,023 56,366 56,541


the Budget year 1

9,799 5,617 5,046 4,550 -


1 Expenses not requiring appropriation consist of depreciation, amortisation expenses and an approved

operating loss.


137


Manage Commonwealth reserves in accordance with their assigned

International Union for Conservation of Nature (IUCN) protected area category

and relevant management principles.

Maintain natural values for which Commonwealth reserves were declared

and/or recognised.

Minimise the impacts of threats to natural values of Commonwealth reserves.

Protect and conserve cultural heritage values for which parks were declared

and/or recognised.

Ensure the effective participation of traditional owners and Indigenous

communities in management of jointly-managed national parks.

Provide inspirational, satisfying and safe experiences to visitors to

Commonwealth reserves.

Promote the effective involvement and contribution of stakeholders and

partners to reserve management activities.

Undertake planning and decision-making that is based on the best available

scientific information, legal obligations and government and agency policies.

Provide high quality, comprehensive and current information to the Australian

community through enhanced web sites to facilitate and foster understanding of

the values of Commonwealth reserves.


138


Performance of this program is measured through regular and targeted monitoring

of the following key performance indicators:

2012-13 2013-14 2014-15 2015-16 2016-17



Viable populations of selected

signif icant species

Maintain Maintain Maintain Maintain Maintain

Distribution/abundance of

signif icant invasive species

No net

increase

No net

increase

No net

increase

No net

increase

No net

increase

Increase in the number of full time

equivalent Indigenous staff and/or

contractors directly or indirectly

providing park services [%]

5 5 5 5 5

Annual Comcover Risk

Benchmarking for DNP ranks w ith

the top Commonw ealth agencies

[%]

5 5 5 5 5

Number of major injuries to staff,

contractors, volunteers and

visitors relating to an undertaking

of the DNP [#]

0 0 0 0 0

Level of visitor satisfaction [%] > 95 > 95 > 95 > 95 > 95

Increase in w ebsite unique users

and publications accessed [%]

5 5 5 5 5


139






movements in administered funds, special accounts and government indigenous

expenditure.



There are no movements of administered funds between years for the DNP.


DNP does not manage any special accounts.



applicable because the DNP has no Indigenous-specific expenses, although significant

investments are being made in training and employment of Indigenous people in

jointly managed parks.


140


3.2.1 Differences in agency resourcing and financial statements


Papers and Portfolio Budget Submission as a result of differences between Australian

Accountant Standards (AAS) and Government Finance Statistics (GFS).

3.2.2 Analysis of budgeted financial statements

Movements in sale of goods and services over the out-years represent a revised

estimate to visitation in the jointly managed parks. The agency is working on

efficiencies particularly around supplier expenditure relating to more coordinated

approaches in procurement across the organisation.

The operating loss over the forward estimates primarily relates to increased

depreciation expenses as a result of a revaluation in 2010–11.

Other income of $3.9 million relates to the estimate of the cost of corporate services

provided by DSEWPaC free of charge under a service delivery agreement with the

Director.

Funding for the administration and management of Australia’s new marine reserve

network will continue to be delivered by the Parks Australia Division of DSEWPaC in

2013-14 under a memorandum of understanding with the agency. This is reflected in

DSEWPaC’s outcome 1 financial tables.


141

3.2.3 Budgeted financial statements tables

Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June



2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES




Other 167 167 167 167 167

Total expenses 70,420 66,226 62,069 60,916 56,541

LESS:

OWN-SOURCE INCOME

Own-source revenue

Amouts received from portfolio department1

40,170 41,497 41,587 41,779 42,005


Interest 786 655 655 655 655

Other 413 277 277 277 277


Gains

Other 3,900 3,900 3,900 3,900 3,900

Total gains 3,900 3,900 3,900 3,900 3,900



services 9,799 5,617 5,046 4,550 -

Surplus (deficit) attributable to the

Australian Government (9,799) (5,617) (5,046) (4,550) -

Total comprehensive income (9,799) (5,617) (5,046) (4,550) -


attributable to the

Australian Government (9,799) (5,617) (5,046) (4,550) - Prepared on Australian Accounting Standards basis. 1 Represents amounts received from DSEWPaC.


142




2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets

Cash and cash equivalents 36,651 33,440 33,440 33,440 33,440

Trade and other receivables 897 897 897 897 897

Other 235 235 235 235 235





Intangibles & other assets 232 232 232 232 232

Other Non-financial assets 530 530 530 530 530


Total assets 243,174 237,557 232,511 227,961 227,961

LIABILITIES

Payables

Suppliers 2,111 2,111 2,111 2,111 2,111

Other 3,533 3,533 3,533 3,533 3,533

Total payables 5,644 5,644 5,644 5,644 5,644

Provisions


Other 32 32 32 32 32



Net assets 229,140 223,523 218,477 213,927 213,927

EQUITY



Reserves 125,572 125,572 125,572 125,572 125,572

Retained surplus 67,123 61,506 56,460 51,910 51,910

(accumulated deficit)


Total Equity 229,140 223,523 218,477 213,927 213,927 Prepared on Australian Accounting Standards basis.


143


Retained Asset Other Contributed Total

earnings revaluation reserves equity/ equity

reserve capital

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


Balance carried forward from

previous period 67,123 125,572 - 36,445 229,140

Adjusted opening balance 67,123 125,572 - 36,445 229,140


Surplus (deficit) for the period (5,617) - - - (5,617)

Total comprehensive income (5,617) - - - (5,617)

of which:

Attributable to the Australian Government (5,617) - - - -


Australian Government 61,506 125,572 - 36,445 223,523



144




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Goods and services 15,352 14,280 10,604 9,755 9,704

Grants Received 39,892 41,543 41,587 41,779 42,261

Interest 786 655 655 655 655

Other 413 277 277 277 277


Cash used

Employees 25,038 25,488 25,761 25,500 27,221

Suppliers 26,241 22,385 18,480 18,084 16,794

Other 167 167 167 167 167

Total cash used 51,446 48,040 44,408 43,751 44,182




Cash used


and equipment 12,035 11,926 8,715 8,715 8,715

Other - - - - -

Total cash used 12,035 11,926 8,715 8,715 8,715




in cash held (12,035) (11,926) (8,715) (8,175) (8,715)




end of the reporting period 36,651 33,440 33,440 33,440 33,440 Prepared on Australian Accounting Standards basis.


145

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forward Forward Forward


2012-13 2013-14 2014-15 2015-16 2016-17

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


ASSETS


departmental resources1

12,035 11,926 8,715 8,715 8,715

TOTAL 12,035 11,926 8,715 8,715 8,715

Total cash used to

acquire assets 12,035 11,926 8,715 8,715 8,715 Prepared on Australian Accounting Standards basis. 1 Includes the following sources of funding:

- annual and prior year appropriations - donations and contributions - internally developed assets

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Table 3.2.6: Statement of Asset Movements (2013-14) Land Buildings Other property, Heritage Investment Intangibles Other Total

plant and and cultural property

equipment assets

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

As at 1 July 2013

Gross book value 6,826 75,553 153,790 - - 164 93 236,426


and impairment - (7,679) (23,861) - - (25) - (31,565)

Opening net book balance 6,826 67,874 129,929 - - 139 93 204,861





annual services 1

- 2,879 9,047 - - - - 11,926

Total additions - 2,879 9,047 - - - - 11,926

Other movements

Depreciation/amortisation expense - (4,508) (9,824) - - - - (14,332)

As at 30 June 2014

Gross book value 6,826 78,432 162,837 - - 164 93 248,352


and impairment - (12,187) (33,685) - - (25) - (45,897)

Closing net book balance 6,826 66,245 129,152 - - 139 93 202,455 Prepared on Australian Accounting Standards basis. 1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013–14 for depreciation / amortisation expenses, DCBs / ACBs

or other operational expenses.

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Great Barrier Reef Marine Park

Authority


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GREAT BARRIER REEF MARINE PARK AUTHORITY

Section 1: Agency Overview and Resources ......................................................... 151 1.1 Strategic Direction Statement ....................................................................... 151 1.2 Agency Resource Statement ........................................................................ 154 1.3 Budget Measures .......................................................................................... 155






151

GREAT BARRIER REEF MARINE PARK AUTHORITY



Under the Great Barrier Reef Marine Park Act 1975, the Great Barrier Reef Marine Park

Authority (the Authority) is responsible for managing one of the world’s premier

natural resources through the care and development of the Great Barrier Reef Marine

Park (the Marine Park). This will ensure the long-term protection of the environment,

biodiversity and heritage values of the region and its ecological sustainability for all

Australians and the international community. The Authority has one outcome; 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. This outcome is

supported by three objectives – which, in brief, are to protect and restore biodiversity,

to safeguard heritage values and to ensure use of the region is ecologically sustainable

and the socio-economic benefits derived from the reef are maintained.

The Great Barrier Reef Outlook Report 2009 (Outlook Report 2009) provided a

comprehensive assessment of what is known about the Great Barrier Reef ecosystem,

its use, its management and the pressures it is facing. The Report states that while the

Great Barrier Reef is one of the healthiest coral reef ecosystems in the world, its long-

term outlook is now at a crossroad and the decisions made in the next few years are

likely to determine its long-term future. The Authority aims to improve the resilience

and therefore the outlook of the Great Barrier Reef by developing and implementing

strategies to address the key risks highlighted in the Outlook Report 2009, namely the

impacts of climate change, declining water quality from catchment runoff, degradation

of coastal habitats from coastal development and remaining impacts from fishing,

illegal fishing and poaching.

Since the Outlook Report 2009, other risks to the long term outlook for the Great

Barrier Reef have become increasingly apparent, namely increases in shipping activity

as a result of port expansions; population growth as a result of expanding urban and

industrial activities along the Great Barrier Reef coast; coastal development and

intensification and changes in land use within the Great Barrier Reef catchment; the

impacts from marine debris; and extreme weather events including floods and

cyclones.

The relationship between the Authority, the Queensland Government and a range of

Australian Government agencies is of critical importance for effective management of

the Great Barrier Reef. In particular, the Field Management program is a co-operative

partnership between the Commonwealth and Queensland Governments that

co-ordinates the day-to-day activities and field operations required for the

Great Barrier Reef Marine Park Authority Budget Statements

152

management of the Marine Park, the associated Queensland Great Barrier Reef Coast

Marine Park and the World Heritage Area.

In carrying out its functions, the Authority will maintain strong relationships with

Traditional Owners and 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 next phase of Reef Rescue (2013–14 to 2017–18) builds on the success of the first

phase of the program. An additional five year investment of $200.0 million will

continue to improve the quality of water entering the Great Barrier Reef by helping

land managers across the reef catchment adopt improved agricultural and urban

management practices that will reduce the discharge of nutrients, sediments and

pesticides in the reef lagoon and thereby improve the reef’s resilience to climate

change. The Authority will assist to delivery of components of the program, including:

Marine monitoring and reporting of the long term health of the reef.

Crown of thorns starfish control which aims to decrease the impact of the crown of

thorns starfish by supporting tourism operators to continue to defend high value

tourism sites. The program will also fund research on new control methods.

Land and sea country partnerships which will strengthen communications

between local communities, managers and reef stakeholders and build a better

understanding of Traditional Owner issues about the management of the Great

Barrier Reef Marine Park, including the sustainable use of traditional marine

resources.

Management of the Marine Park including the highly successful Reef Guardian

initiative to improve community, local government and industry capacity and

facilitate the adoption of environmentally sustainable best practices and

knowledge and information sharing, ultimately achieving critical environmental

outcomes for the Great Barrier Reef.

A major focus of the Authority will be to continue working with DSEWPaC and the

Queensland Government to finalise and begin implementing the recommendations of

the comprehensive strategic assessment of the Great Barrier Reef World Heritage Area.

It is intended that the Authority’s future program of work will provide greater

certainty about the standards to be met when undertaking activities, the requirements

the Authority will use for assessments and, most importantly, the outcomes the

Authority is working to achieve.

The Authority will continue implementation of its Biodiversity Conservation Strategy

2013, Recreation Management Strategy, and Climate Change Adaptation Strategy and

Action Plan 2012–2017 and will incorporate findings from Informing the Outlook for

Great Barrier Reef coastal ecosystems into its planning and advice in relation to coastal

development.


153

The current economic environment will continue to be felt throughout 2013–14 and the

forward estimates and may impact on two areas of the Authority’s operations. The

first is the Special Appropriation raised through the Environmental Management

Charge on tourist visitors to the Marine Park. The second is the visitor numbers to the

Reef HQ Aquarium, which operates as the Authority’s primary education facility. Both

areas are key contributors to the resources available to perform the Authority’s

functions and both will continue to be affected by the downturn in tourism resulting

from global economic influences.


154




classification.

Table 1.1: Great Barrier Reef Marine Park Authority Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013




available in

2013- 14 2013- 14 2013- 14 2012- 13

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

Ordina ry a nnua l se rvic e s1


Prior year departmental appropriation2

9,068 - 9,068 9,298

Departmental appropriation3

- 23,535 23,535 23,566

s31 Relevant agency receipts4

- 16,039 16,039 22,872

Less s31 Relevant agency receipts

received by Special Accounts - (8,386) (8,386) (8,427)

Tota l 9 ,0 6 8 3 1,18 8 4 0 ,2 5 6 4 7 ,3 0 9


Outcome 15

- 900 900 900

Tota l - 9 0 0 9 0 0 9 0 0

Tota l ordina ry a nnua l se rvic e s A 9 ,0 6 8 3 2 ,0 8 8 4 1,15 6 4 8 ,2 0 9

Tota l othe r se rvic e s B - - - -


a ppropria tions 9 ,0 6 8 3 2 ,0 8 8 4 1,15 6 4 8 ,2 0 9

Spe c ia l a ppropria tions

Spe c ia l a ppropria tions limite d

by a mount

Special Appropriation: Great Barrier Reef

Marine Park Act 1975 - 4,750 4,750 4,750

Tota l spe c ia l a ppropria tions C - 4 ,7 5 0 4 ,7 5 0 4 ,7 5 0

Tota l a ppropria tions e xc luding

Spe c ia l Ac c ounts 9 ,0 6 8 3 6 ,8 3 8 4 5 ,9 0 6 5 2 ,9 5 9


Opening balance7

- - - -

Appropriation receipts8

- 8,456 8,456 8,387

Non- appropriation receipts to


Tota l Spe c ia l Ac c ount D - 16 ,8 4 2 16 ,8 4 2 16 ,8 14

Tota l re sourc ing

A+B+C+D 9,068 53,680 62,748 69,773



and credited to special accounts - (8,456) (8,456) (8,387)

Tota l ne t re sourc ing for Gre a t

Ba rrie r Re e f Ma rine Pa rk

Authority 9 ,0 6 8 4 5 ,2 2 4 5 4 ,2 9 2 6 1,3 8 6


155

Table 1.1: Great Barrier Reef Marine Park Authority Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 (continued) 1 Appropriation Bill (No.1) 2013–14.

2 Estimated adjusted balance carried forward from previous year.

3 Includes an amount of $0.9m in 2013–14 for the Departmental Capital Budget (refer to table 3.2.5 for

further details). For accounting purposes this amount has been designated as 'contributions by owners. 4 s31 Relevant Agency receipts - estimate.

5 The Great Barrier Reef Marine Park Authority does not receive an Administered Capital Budget in 2013–14.

6 Appropriation Bill (No.2) 2013–14.

7 Estimated opening balance for special accounts (less ‘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 Special accounts (SOETM)). For further information on special accounts see Table 3.1.2.

8 Appropriation receipts from GBRMPA annual and special appropriations for 2012–13 included above.

Note: All figures are GST exclusive.

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Great Barrier Reef Marine Park Authority are

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

Part 1: Measures announced since the 2012–13 MYEFO

Great Barrier Reef Marine Park Authority does not have any new measured announced since the Mid Year Economic and Fiscal Outlook (MYEFO).

Table 1.2: Great Barrier Reef Marine Park Authority 2013-14 Budget measures Part 2: MYEFO measures not previously reported in a portfolio statement

Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Measures (if applicable)

Targeted savings - public service

efficiencies 1.1

Departmental expenses (102) (155) (257) (280) (270)

Total (102) (155) (257) (280) (270) Prepared on a Government Financial Statistics (fiscal) basis.


156










Authority in achieving Government outcomes.

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.

Outcome 1 Strategy

The Authority works to achieve outcome 1 by implementing policy, programs,

management strategies and legislative measures within the statutory framework of the

Great Barrier Reef Marine Park Act 1975, the Environment Protection and Biodiversity

Conservation Act 1999 (EPBC Act) and by complying with other legislation under

Commonwealth and Queensland State law, together with relevant international

conventions.

The outcome will be delivered through three objectives:

To protect and restore biodiversity;

To safeguard heritage values; and

To ensure use of the region is ecologically sustainable and the socio-economic

benefits derived from the reef are maintained.

Within these objectives, over the next four years, the priorities of the Authority are:

to finalise the comprehensive strategic assessment and associated program report;

to implement new initiatives resulting from the comprehensive strategic

assessment to protect and restore values, reduce pressures and ensure use is

managed within ecologically sustainable limits;


157

to have a collaborative approach to management, especially with Traditional

Owners, the Queensland and Commonwealth Governments, Reef industries, the

scientific community and the broader community; and

to enable the Authority to evolve as a knowledge-based organisation, where

decisions regarding the management of the Marine Park are fully informed by the

best science and information available.




2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 1.1: Improving the outlook for the Great Barrier

Reef


Ordinary annual services (Appropriation Bill No. 1) 900 900



Less Special Accounts (16,814) (16,842)

Special appropriations 4,750 4,750






Ordinary annual services (Appropriation Bill No. 1) 900 900



Special appropriations 4,750 4,750




2012-13 2013-14


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

1 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from

independent sources (s31)". 2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation

Expense, Make good Expense and Audit Fees.


158


Program 1.1: Improving the outlook for the Great Barrier Reef

Program Objective

To protect and restore biodiversity;

To safeguard heritage values; and



Linked to:

Department of Sustainability, Environment, Water, Population and

Communities: Program 1.1: Sustainable management of natural resources and

the environment.


159

Program Expenses

For 2012–13 and 2013–14 the Government has provided funding through the Caring

for Our Country program to support the Authority to ensure the resilience of the

Great Barrier Reef. The Environmental Management Charge on tourists to the

Marine Park will continue to be reduced by $2.50 for the next two years (to 31 March

2015). The reduction to the Special Appropriation will be offset by an increase in

departmental appropriation.

Program 1.1 Expenses: Improving the outlook for the Great Barrier Reef

2012-13 2013-14 2014-15 2015-16 2016-17



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


Climate Change Adaptation 900 900 900 900 900


Departmental program support 45,054 38,116 34,342 31,135 31,413


Special Appropriations:

Great Barrier Reef Marine Park Act 1975 4,750 4,750 4,750 8,200 8,200


Great Barrier Reef Field Management

Special Account 16,814 16,842 16,965 17,122 17,201


the Budget year 1 1,635 1,631 1,631 1,631 1,631

Total program expenses 52,339 45,397 41,623 41,866 42,144 1 Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,

Amortisation Expenses, Make good Expenses and Audit Fees.


160


Protect and restore the Reef’s biodiversity

Implement the Great Barrier Reef Biodiversity Conservation Strategy 2013

Implement the marine and island conservation and the compliance program

components of the 2013–14 Annual Business Plan for Field Management

Respond to the emerging crown of thorn starfish outbreak

Finalise the Great Barrier Reef Outlook Report 2014

Safeguard the Reef’s heritage value

Fulfil heritage obligations under the World Heritage Convention and

Environment Protection and Biodiversity Conservation Act 1999

Implement the cultural heritage protection components of the 2013–14 Annual

Business Plan for Field Management

Finalise the Great Barrier Reef Region strategic assessment



Develop new and implement the existing policy, planning and regulatory

framework

Implement the incident response management, recreation & tourism facilities

and Indigenous engagement components of the 2013–14 Annual Business Plan

for Field Management

Expand stewardship and partnership programs

Implement education and engagement programs

Co-host the International Coral Reef Initiative in 2012 and 2013

Deliver enabling services to support high performance and productivity across

the agency


161

2012-13 2013-14 2014-15 2015-16 2016-17



Permits issued per annum [#] 650 650 650 650 650

Local marine Advisory Committees in

place [#]11 11 11 11 11

Local marine Advisory Committee

meetings held [#]55 55 55 55 55

Reef Advisory Committees in place [#] 4 4 4 4 4

Reef Advisory Committee meetings

held [#]8 8 8 8 8

Reef HQ Aquarium visitors [#] 118,000 120,000 122,000 122,000 122,000

Reef Guardian Schools [#] 205 210 215 215 215

Reef Guardian Councils [#] 15 15 15 16 16


Protect and restore biodiversity

Improved protection for Great Barrier Reef habitats and species.

Restored health of coastal ecosystems.

The standards set in the Reef Water Quality Guidelines are met.

Safeguard heritage values

Enhanced identification, understanding, recognition, protection and

conservation of the Great Barrier Reef’s Outstanding Universal Value and of

Aboriginal and Torres Strait Islander’s and historic heritage.



Use of the Great Barrier Reef Region is ecologically sustainable.

Increased support for and the uptake of best practice approaches

Improved community understanding and consideration of the benefits the Great

Barrier Reef provides

Integrated, efficient and effective business systems and management processes.


162

Key Performance Indicators 2012-13 2013-14 2014-15 2015-16 2016-17

Key Performance Indicators Revised Budget Forw ard Forw ard Forw ard


Trends in sediment loads, nitrogen

and phosphorus loads and

pesticide loads for end-of-

catchment w aters of the Northern,

Central and Southern regions of

the Great Barrier Reef Lagoon

[increasing / decreasing]

Decreasing Decreasing Decreasing Decreasing Decreasing

Area of Marine Park managed in

accordance w ith an accredited

Traditional use of Marine

Resources Agreement or an

Indigenous Land Use Agreement

[%]

18 18 18 18 18

Research projects (that are either

the responsibility of the agency or

that the agency has influenced)

w hich address science

information needs that relate to

issues of high or medium concern

to management (as identif ied by

the Outlook Report)

100 100 100 100 100

Visitors to the Great Barrier Reef

using tourism operators

accredited as “High Standard

Operators” [%]

50 50 55 55 55

Student participants w ithin the

Reef Guardian School programs

[#]

110,000 111,000 112,000 113,000 114,000

Visitors to Reef HQ that participate

in talks and tours that deliver key

messages about risks to the Great

Barrier Reef [%]

63 63 63 63 63

Proactive media releases w hich

have resulted in published articles

/ new s clips [%]

90 90 90 90 90


163






movements in administered funds, special accounts and government indigenous

expenditure.



There are no movements of administered funds between years for the Authority.






Great Barrier Reef Marine Park Authority.


Opening Closing


2013-14 2013-14 2013-14 2013-14 2013-14

2012-13 2012-13 2012-13 2012-13 2012-13

Outcome $'000 $'000 $'000 $'000 $'000

Great Barrier Reef Field

Management Special Account

(D)*

1 - 16,842 16,842 - -

- 16,814 16,814 - -


2013-14 Budget estimate - 16,842 16,842 - -


2012-13 estimated actual - 16,814 16,814 - - * Established under s49 of the Great Barrier Reef Marine Park Act 1975. (D) = Departmental


164


Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)

Outcome Other Total Program

Bill Bill Special Total

No. 1 No. 2 approp approp

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

Great Barrier Reef Marine

Park Authority

Outcome 1

Departmental 2013-14 1,200 - - 1,200 - 1,200 1.1

Departmental 2012-13 1,200 - - 1,200 2,920 4,120 1.1

Total outcome 2013-14 1,200 - - 1,200 - 1,200 1.1

Total outcome 2012-13 1,200 - - 1,200 2,920 4,120 1.1

Total AGIE 2013-14 1,200 - - 1,200 - 1,200 1.1

Total AGIE 2012-13 1,200 - - 1,200 2,920 4,120 1.1

Appropriations


165





Australian Accounting Standards (AAS) and Government Finance Statistics (GFS).


Funding provided in 2010–11, 2011–12 and 2012–13 to support the continuation of the

work of the Authority towards improving the outlook for the Great Barrier Reef will

continue to be funded from Caring for our Country in 2013–14. Revenue will also

contribute to Capital Expenditure.

The Special Appropriation derived from the Environmental Management Charge has

been reduced in 2013–14 and 2014–15 and will be offset by an increase in Departmental

Appropriation for those years.

In 2012–13 the Authority received additional funding to contribute to the procurement

of a new vessel for field management, for a targeted crown of thorns starfish control

program and from the regional sustainable planning. .

The 2008–2013 Reef Rescue funding for Marine Monitoring and Indigenous

partnerships was until June 2013. Additional funding to ensure the extension of the

Reef Rescue program until 2018 has been announced. The Authority will work with

DSEWPaC to deliver components of the Reef Rescue program, including: the targeted

crown of thorns starfish control program and research on new control methods;

Indigenous partnerships; and monitoring and research. Additional Reef Rescue

funding will also be provided to the Authority to provide critical operational support

to enhance its management of the Great Barrier Reef Marine Park. Not all funding

allocations have been finalised for the second phase of Reef Rescue therefore, the

financial statements show a reduction in program expenses in the Budget and forward

years pending the allocation of funds.


166





2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES


Suppliers 14,666 9,569 8,106 8,358 8,557

Grants 500 - - - -


Other expenses 12,185 12,110 12,113 12,104 12,183

Total expenses 51,439 44,497 40,723 40,966 41,244

LESS:

OWN-SOURCE INCOME

Own-source revenue


Other 19,844 13,011 8,439 8,513 8,592


Gains

Other 48 48 48 48 48

Total gains 48 48 48 48 48



services 28,567 28,458 29,256 29,425 29,624


Surplus (deficit) attributable to







Government (1,127) (1,053) (1,583) (1,583) (1,583)


(loss) excluding depreciation/

amortisation expenses

previously funded through

revenue appropriations. 460 530 - - -

Less depreciation/amortisation expenses


appropriations1 1,587 1,583 1,583 1,583 1,583



Comprehensive Income (1,127) (1,053) (1,583) (1,583) (1,583) Prepared on Australian Accounting Standards basis. 1 From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


167




2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets







Intangibles 2,269 2,344 2,104 1,864 1,624

Inventories 64 64 64 64 64

Other non-financial assets 317 317 317 317 317


Assets held for sale

Total assets 34,531 33,808 33,111 32,423 31,744

LIABILITIES

Payables

Suppliers 1,083 783 783 783 783

Other payables 1,154 904 904 904 904

Total payables 2,237 1,687 1,687 1,687 1,687

Provisions


Other provisions 380 380 380 380 380



Net assets 25,868 25,695 24,998 24,310 23,631

EQUITY*



Reserves 21,654 21,654 21,654 21,654 21,654

Retained surplus



Total non-controlling interest - - - - -

Total Equity 25,868 25,695 24,998 24,310 23,631 Prepared on Australian Accounting Standards basis.


168




reserve capital

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



previous period (7,922) 13,078 8,576 12,136 25,868

Adjusted opening balance (7,922) 13,078 8,576 12,136 25,868


Surplus (deficit) for the period (1,053) (1,053)


of w hich:

Attributable to the Australian Government (1,053) - - - (1,053)

Attributable to non-controlling interest* -



Departmental Capital Budget (DCBs) - - - 880 880

Sub-total transactions with owners - - - 880 880


as at 30 June 2014 (8,975) 13,078 8,576 13,016 25,695


Australian Government (8,975) 13,078 8,576 13,016 25,695 Prepared on Australian Accounting Standards basis.


169




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Appropriations 27,440 27,405 27,673 27,842 28,041

Receipts from Government 11,417 4,625 - - -

Sale of goods and rendering of

services2,980 2,980 2,980 2,980 2,980

Other 8,202 8,241 8,144 8,218 8,297


Cash used

Employees 22,206 20,940 18,626 18,626 18,626

Suppliers 14,618 9,521 8,058 8,310 8,509

Grants 500 - - - -

Other 12,185 12,110 12,113 12,104 12,183

Total cash used 49,509 42,571 38,797 39,040 39,318


operating activities 530 680 - - -


Cash used


and equipment 1,436 1,410 886 895 904

Total cash used 1,436 1,410 886 895 904


investing activities (1,436) (1,410) (886) (895) (904)


Cash received

Contributed equity 876 880 886 895 904

Total cash received 876 880 886 895 904

Cash used



financing activities 876 880 886 895 904


in cash held (30) 150 - - -




end of the reporting period 326 476 476 476 476 Prepared on Australian Accounting Standards basis.


170

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard


2012-13 2013-14 2014-15 2015-16 2016-17

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


Capital budget - Bill 1 (DCB) 876 880 886 895 904

Total new capital appropriations 876 880 886 895 904

Provided for:

Purchase of non-financial assets 876 880 886 895 904

Total Items 876 880 886 895 904


ASSETS

Funded by capital appropriation - DCB1876 880 886 895 904


departmental resources 2560 530 - - -

TOTAL 1,436 1,410 886 895 904




Total purchases 1,436 1,410 886 895 904

Total cash used to

acquire assets 1,436 1,410 886 895 904 Prepared on Australian Accounting Standards basis. 1 Figures do not include annual finance lease costs. Include purchase from current and previous years’

Departmental Capital Budgets (DCBs). 2 Includes the following sources of funding:

– Current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB). – s31 relevant agency receipts (for FMA agencies only) – proceeds from the sale of assets Bill

Great B

arrier Reef M

arine P

ark Au

thority

Bu

dg

et Statem

ents

171

Table 3.2.6: Statement of Asset Movements (2013-14)

Prepared on Australian Accounting Standards basis

1 "Appropriation equity" refers to equity injections or Administered Assets and Liabilities appropriations

2 “Appropriation ordinary annual service” refers to funding provided through Appropriation Bill (No. 1) 2013–14 for depreciation / amortisation expenses, DCBs or other

operational expenses. 3 Net proceeds may be returned to the OPA

Land Buildings Other property, Heritage Investment Computer L&B, IP&E Other Total



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

As a t 1 July 2 0 13

Gross book value - 20,819 4,633 - - 4,258 - - 29,710


and impairment - (2,526) (1,187) - - (1,989) - - (5,702)

Ope ning ne t book ba la nc e - 18 ,2 9 3 3 ,4 4 6 - - 2 ,2 6 9 - - 2 4 ,0 0 8


Estima te d e xpe nditure on

ne w or re pla c e me nt a sse ts


- - - - - - - - -


annual services 2

- 500 495 - - 415 - - 1,410

Tota l a dditions - 5 0 0 4 9 5 - - 4 15 - - 1,4 10

Othe r move me nts

Depreciation/amortisation expense - (843) (400) - - (340) - - (1,583)

Disposals 3

- - - - - - - - -

Tota l othe r move me nts - (8 4 3 ) (4 0 0 ) - - (3 4 0 ) - - (1,5 8 3 )

As a t 3 0 June 2 0 14

Gross book value - 21,319 5,128 - - 4,673 - - 31,120


and impairment - (3,369) (1,587) - - (2,329) - - (7,285)

Closing ne t book ba la nc e - 17 ,9 5 0 3 ,5 4 1 - - 2 ,3 4 4 - - 2 3 ,8 3 5


172




2012-13 2013-14 2014-15 2015-16 2016-17

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



Suppliers 900 900 900 900 900


on behalf of Government 900 900 900 900 900

LESS:

OWN-SOURCE INCOME

Own-source revenue


Rental income 285 285 285 285 285

Other revenue 4,750 4,750 4,750 8,200 8,200

Total non-taxation revenue 5,035 5,035 5,035 8,485 8,485



Government 5,035 5,035 5,035 8,485 8,485



Government 5,035 5,035 5,035 8,485 8,485


services 4,135 4,135 4,135 7,585 7,585

Surplus (deficit) 4,135 4,135 4,135 7,585 7,585



Total comprehensive income (loss) 4,135 4,135 4,135 7,585 7,585 Prepared on Australian Accounting Standards basis


173

Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)



2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets







Total assets administered


LIABILITIES

Payables

Suppliers 201 201 201 201 201

Other payables 1,501 1,501 1,501 1,501 1,501

Total payables 1,702 1,702 1,702 1,702 1,702

Total liabilities administered


Net assets (liabilities) 9,350 9,350 9,350 9,350 9,350 Prepared on Australian Accounting Standards basis


174




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Rental income 285 285 285 285 285

Other 4,750 4,750 4,750 8,200 8,200


Cash used

Suppliers 900 900 900 900 900

Total cash used 900 900 900 900 900




cash held 4,135 4,135 4,135 7,585 7,585


beginning of reporting period 164 164 164 164 164


- Appropriations 900 900 900 900 900

900 900 900 900 900


- Appropriations 4,750 4,750 4,750 8,200 8,200

- Other 285 285 285 285 285

5,035 5,035 5,035 8,485 8,485


of reporting period 164 164 164 164 164 Prepared on Australian Accounting Standards basis

175

Great B

arrier Reef M

arine P

ark Au

thority

Bu

dg

et Statem

ents

Table 3.2.11: Statement of Administered Asset Movements (2013-14) Land Buildings Other property, Heritage Investment Computer L&B, IP&E Other Total



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


Gross book value 9,350 - - - - - - - 9,350


and impairment

Ope ning ne t book ba la nc e 9 ,3 5 0 - - - - - - - 9 ,3 5 0




Tota l a dditions - - - - - - - - -

Othe r move me nts

Tota l othe r move me nts - - - - - - - - -

As a t 3 0 June 2 0 14

Gross book value 9,350 - - - - - - - 9,350


and impairment - - - - - - - - -

Closing ne t book ba la nc e 9 ,3 5 0 - - - - - - - 9 ,3 5 0

Prepared on Australian Accounting Standards basis

177

Murray-Darling Basin

Authority


179

MURRAY-DARLING BASIN AUTHORITY

Section 1: Agency overview and resources ........................................................... 181


Section 2: Outcomes and planned performance ................................................... 186 2.1 Outcomes and Performance Information ...................................................... 186

Section 3: Explanatory tables and budgeted financial statements ..................... 194



181

MURRAY-DARLING BASIN AUTHORITY

Section 1: Agency overview and resources


The Murray-Darling Basin Authority (MDBA) is a Commonwealth statutory authority

established under the Water Act 2007 (the Act). The Act establishes the MDBA as the

body responsible for developing and overseeing a planning framework for the

integrated management of the Murray-Darling Basin’s water and other natural

resources in a way that optimises economic, social and environmental outcomes in the

national interest. This responsibility includes but is not limited to:

protecting, restoring and providing for the ecological values and ecosystem

services of the Murray-Darling Basin (the Basin);

ensuring the return to environmentally sustainable levels of extraction of water

resources that are over allocated or overused;

promoting the using and management of the Basin resources in a way that

optimises economic, social and environmental outcomes; and

giving effect to relevant international agreements.

In addition to its functions under the Act, the MDBA has functions under the

Murray-Darling Basin Agreement (the Agreement), which forms Schedule 1 to the Act.

These include giving effect to decisions of the Ministerial Council and the Basin

Officials Committee in relation to natural resource management programs and River

Murray operations, advising these bodies and providing them with administrative

support. The MDBA delivers its functions under the Agreement in conjunction with

and on behalf of the contracting governments.

These two roles are bought together under the MDBA’s single outcome:

Equitable and sustainable use of the Murray-Darling Basin by governments and the

community including through development and implementation of a Basin Plan, operation of

the River Murray system, shared natural resource management programs, research,

information and advice.

The MDBA’s focus during 2013–14 will be to continue implementation of the

Murray-Darling Basin Plan (the Basin Plan), which was adopted by the Minister for

Sustainability, Environment, Water, Population and Communities in November 2012.

Key implementation priorities in 2013–14 will be to:

develop implementation agreements with each Basin state or territory government

to guide Basin Plan implementation and assist all stakeholders understand how,

when and by whom particular requirements of the Basin Plan will be carried out;

Murray-Darling Basin Authority Budget Statements

182

develop detailed statutory guidelines for water resource planning and critical

human water needs;

determine the first Basin scale annual environmental water priorities to guide

Commonwealth and state watering activities for the 2013–14 water year;

develop a method to assess the potential for projects developed by the states to

deliver equivalent environmental outcomes for less environmental water than

required by the sustainable diversion limits in the Basin Plan;

develop a Constraints Management Strategy by working with the states and the

community to develop options to address constraints in the system and achieve

better outcomes with environmental water delivery;

meet the MDBA’s obligations under the Basin Plan in regard to water quality and

flow/salinity targets;

advance the Northern Basin work program to conduct further analysis of

biophysical, social and economic matters with community input in the northern

basin;

review groundwater sustainable diversion limits and baseline diversion limits in

three aquifers in NSW and Victoria;

work with the states and irrigation infrastructure operators to develop user-

friendly guidelines to accompany the new water trading rules;

ensure that implementation arrangements are clearly communicated and include

opportunities for the community to be involved; and

establish the MDBA as an authoritative information service for water resource

management in the Basin and to improve the system’s capability to gather, access,

analyse, use and report information in a consistent manner across the Basin.

Additional departmental funding has been provided to the MDBA from 2013–14 to

undertake the above priorities including:

$76.2 million over four years for the implementation of the Basin Plan;

$39.4 million over 11 years for the assessment and implementation of

environmental works and measures projects associated with the adjustment

mechanism for sustainable diversion limits in the Basin Plan;

$31.6 million over seven years to achieve enhanced environmental watering

outcomes through the analysis and progressive removal of constraints to efficient

water delivery.

Further, $155.0 million is provided over seven years in administered funds for South

Australian Riverland floodplain integrated infrastructure projects.

The MDBA will deliver a revised suite of joint programs under the Agreement in

2013-14 as agreed by the Murray-Darling Basin Ministerial Council following further


183

reductions in contributions to joint programs by New South Wales in 2013–14. The

MDBA will continue working with the Basin governments to develop options for

alternative cost sharing, governance and institutional arrangements for the delivery of

joint programs in the Basin including for the maintenance of existing and future jointly

owned assets.

A range of environmental works and measures which have been significantly delayed

over the last two years due to flooding will be substantially completed in 2013–14,

together with the construction of the spillway southern training wall at Hume Dam,

which is part of the MDBA’s dam safety program.




classification.


184

Table 1.1: Murray-Darling Basin Authority Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013




available in

2013- 14 2013- 14 2013- 14 2012- 13

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



Prior year departmental appropriation2

129,187 - 129,187 196,456

Departmental appropriation3

- 47,913 47,913 50,654

s31 Relevant agency receipts4

- 88,978 88,978 104,102

Tota l 12 9 ,18 7 13 6 ,8 9 1 2 6 6 ,0 7 8 3 5 1,2 12


Outcome 1 5

- 3,000 3,000 -

Tota l - 3 ,0 0 0 3 ,0 0 0 -

Tota l ordina ry a nnua l se rvic e s A 12 9 ,18 7 13 9 ,8 9 1 2 6 9 ,0 7 8 3 5 1,2 12


a ppropria tions 12 9 ,18 7 13 9 ,8 9 1 2 6 9 ,0 7 8 3 5 1,2 12


Opening balance6

129,187 - 129,187 196,456

Appropriation receipts7 - 47,913 47,913 50,654

Non- appropriation receipts to8


Tota l Spe c ia l Ac c ount B 12 9 ,18 7 15 2 ,9 8 3 2 8 2 ,17 0 3 6 9 ,9 3 8

Tota l re sourc ing

A+B 258,374 292,874 551,248 721,150



and credited to special accounts

and/or CAC Act bodies through

annual appropriations (129,187) (136,891) (266,078) (351,212)

Tota l ne t re sourc ing for MDBA 12 9 ,18 7 15 5 ,9 8 3 2 8 5 ,17 0 3 6 9 ,9 3 8 1 Appropriation Bill (No.1) 2013–14.

2 Estimated adjusted balance carried forward from previous year.

3 MDBA does not receive a Departmental Capital Budget in 2013–14 (refer to table 3.2.5 for further details).

4 s31 Relevant Agency receipts — estimate.

5 MDBA does not receive an Administered Capital Budget in 2013–14 (refer to table 3.2.10 for further

details). For accounting purposes this amount has been designated as 'contributions by owners'.

6 Estimated opening balance for special accounts. For further information on special accounts see Table

3.1.2. 7 Appropriation receipts include Interest Equivalency of $5.230 million.

8 Non-appropriation receipts to Special Accounts primarily include contributions from jurisdictions for MDB

Agreement functions and GST receipts. Reader note: All figures are GST exclusive.


185

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the MDBA are detailed in Budget Paper No. 2

and are summarised below.

Table 1.2: Agency 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO

Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Expense measures

Murray-Darling Basin Plan - additional

support 1.1

Administered expenses1 - - - - -

Departmental expenses2 - - - - -

Total - - - - -


Administered - - - - -

Departmental - - - - -

Total - - - - - Prepared on a Government Finance Statistics (fiscal) basis. 1 This measure represents as a decision taken not yet announced at 2012–13 Mid-Year Economic and Fiscal

Outlook (MYEFO). $155.0 million over seven years will be provided to the MDBA to undertake the South Australian Riverland Floodplains Integrated Infrastructure program, to restore the health of significant floodplain wetland on River Murray in the Riverland region of South Australia. $55.0 million (of the $155 million) is being transferred from the existing resourcing of DSEWPaC. Refer National Water Commission and DSEWPaC Tables 1.2 and chapters for additional related components of the Murray-Darling Basin Plan – additional support measure.

2 Additional Departmental appropriations over 11 years also represent a decision taken not yet announced at

2012–13 Mid-Year Economic and Fiscal Outlook: a. MDBA - Environmental Works and Measures - $39.358 million from 2013–14 to 2023–24; and b. MDBA - Enhanced Environmental Outcomes - $31.592 million from 2013–14 to 2019–20.


Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Saving measures


efficiencies 1.1


Departmental savings (188) (208) (285) (311) (305)

Total (188) (208) (285) (311) (305)

Total saving measures


Departmental savings (188) (208) (285) (311) (305)

Total (188) (208) (285) (311) (305) Prepared on a Government Finance Statistics (fiscal) basis.


186








The MDBA’s outcome is described below together with the Strategic Goals and

Objectives which contribute to its achievement. Described in later pages are the key

deliverables and performance indicators used to assess and monitor the performance

of the MDBA in achieving the Government’s outcome.

The MDBA objectives, deliverables and key performance indicators have been

reviewed and revised to reflect the adoption of the Murray-Darling Basin Plan and

commencement of implementation of the Murray-Darling Basin Plan. The activity

relating to The Living Murray (TLM) program has also been realigned from Goal 4 to

Goal 2 to reflect the link to river and ecosystem health.

Outcome 1: Equitable and sustainable use of the Murray-Darling Basin by governments and the community including through development and implementation of a Basin Plan, operation of the River Murray system, shared natural resource management programs, research, information and advice.

Outcome Strategy

The delivery of the MDBA’s outcome is achieved through Program 1.1 – Equitable and

sustainable use of the Murray-Darling Basin and has the following strategic goals:

Strategic Goal 1: Integrated Water Management – Sustainable water planning and

management arrangements that optimise the social, economic and environmental

outcomes from the use of Basin water resources.

Strategic Goal 2: River and Ecosystem Health – Protect, restore or improve the

ecological health and resilience of the Basin’s key environmental assets and water

dependent ecosystems.

Strategic Goal 3: Knowledge into Action – Develop authoritative information,

monitoring and research, in partnership with governments, scientists, and

communities, to underpin decision making and adaptive management.


187

Strategic Goal 4: River Murray Asset Management – To equitably, efficiently and

effectively manage, operate and sustain the River Murray System assets to deliver

states’ water allocations and environmental outcomes.


Table 2.1 provides an overview of the total expenses for the outcome by Program 1.1.


2012-13

Estimated

actual

expenses

2013-14

Estimated

expenses

$'000 $'000

Program 1.1: Equitable & sustainable use of the Murray-

Darling Basin


Ordinary annual services (Appropriation Bill No. 1) - 3,000







Ordinary annual services (Appropriation Bill No. 1) - 3,000






2012-13 2013-14


Outcome 1: Equitable and sustainable use of the Murray-

Darling Basin by governments and the community

including through development and implementation of a

Basin Plan, operation of the River Murray system, shared

natural resource management programs, reserch,

information and advice

1 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue

from independent sources (s31)". Revenue from independent sources includes primarily jurisdiction contribution to the MDB Agreement functions which are credited directly to the MDB Special Account pursuant to the provisions under the Water Act 2007.

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

Expense, Make-good Expense, and Audit Fees. The MDBA does not receive a Departmental Capital Budget through Appropriation Bill 1 equity appropriations for capital acquisitions.

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


188


Program 1.1: Equitable and Sustainable use of the Murray-Darling Basin

Program Objective

Strategic Goal 1: Integrated Water Management

To optimise social economic and environmental outcomes arising from the use

of Basin-wide water resources in the national interest.

To embed sustainable and long-term adaptive management of Basin water

resources.

To improve water security for all uses of Basin water resources.

To strengthen support for the Basin Plan working together closely with

governments and the wider community, in a way that respects the roles and

responsibilities of all parties.

Strategic Goal 2: River and Ecosystem Health

To optimise ecological outcomes of environmental water in the Basin.

To improve the understanding of river health including ecosystem health,

function and response to watering and management interventions.

To reduce adverse impacts on river and ecosystem health.

Strategic Goal 3: Knowledge into Action

To continuously build an evidence base to support the implementation of the

Basin Plan through data acquisition, research and dissemination of knowledge.

To improve availability and accessibility of evidence to the community,

Government and industry.

Strategic Goal 4: River Murray Asset Management

To build, maintain and improve River Murray system assets to achieve

contemporary best practice standards

To manage the water sharing of the River Murray system between states to meet

multiple social, economic and environmental objectives and support the

community.


189

Program Expenses

Program expenses are projected to decrease in 2013–14 and over the forward years

reflecting the net result of the following:

additional appropriation for new measures as reflected in Table 1.2 and for the

implementation of the Basin Plan;

completion of a range of environmental works and measures projects in 2012–13

and 2013–14;

completion of the dam safety program at Hume Dam in 2013–14;

reductions in the amount of interest equivalency appropriation as funds held in

the MDBA special account are used to complete environmental works and

measures projects; and

implementation of Murray-Darling Basin Ministerial Council decisions on the

cessation and/or reduction in the delivery of Murray-Darling Basin Agreement

joint programs following the reductions in contributions to joint programs by

New South Wales of $19.8 million in 2012–13 and a further reduction of

$3.5 million in 2013–14 and the forecast reduction of 50 per cent in contributions

(approximately $13.2 million) by South Australia from 2014–15.

Program 1.1 Expenses: Equitable & sustainable use of the Murray-Darling Basin

2012-13 2013-14 2014-15 2015-16 2016-17



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


Administered item - 3,000 7,000 25,000 40,000


Murray-Darling Basin Special Account -

s21 FMA Act{s209 Water Act 2007 - Act

No. 137] (D)

169,361 145,506 85,154 73,440 73,434


Departmental Appropriation 50,654 47,913 46,641 48,589 47,530

Program support


the Budget year 1 2,454 2,134 2,869 2,316 2,322

Total program expenses 222,469 198,553 141,664 149,345 163,286 (D) = Departmental 1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation

Expense, Make-good Expense and, Audit Fees. The MDBA does not have a Departmental Capital Budget. Any capital acquisitions and/or investments are

funded from non-appropriation receipts.


190



Establish Basin Plan reporting, evaluation and audit framework.

Develop a Constraints Management Strategy and progress the Sustainable

Diversion Limit (SDL) Adjustment Mechanism.

Establish a 3 year work program of research and investigation into aspects of the

Basin Plan in the northern Basin.

Conduct groundwater SDL reviews as required in the Basin Plan.

Finalise the Guidelines for accreditation of Water Resource Plans.

Finalise clear transitional arrangements for the Basin Plan.

Develop reporting arrangements for provisional SDL compliance.

Implement water trading rules.

Establish agreed arrangements to meet critical human water use needs and

apply, if necessary, during times of severe water shortage.

Finalise an Implementation Agreement with Basin states and territories for the

Basin Plan.

Establish internal structures, processes and reporting arrangements to ensure

Basin governments and the community are involved in implementation of the

Basin Plan.

Establish the formal and informal arrangements to support close community

collaboration in implementing the Plan.


Publish the Basin Annual Environmental Watering Priorities.

Develop draft Basin Environmental Watering Strategy.

Publish a report that identifies and accounts for the use of held environmental

water in the Basin each financial year.

Approve The Living Murray (TLM) annual water plan and obtain relevant

approvals.

Approve contracts for effective Icon site environmental management and TLM

monitoring priorities.

Develop the method to calculate environmental equivalents in the SDL

adjustment process.

Establish effective cooperation between environmental water holders.

Develop a conservation planning process to underpin environmental water

delivery in line with the recommendation of the Commonwealth Scientific and


191

Industrial Research Organisation (CSIRO) led review 2011.

Develop Basin Plan reporting, evaluation and audit framework that allows

assessment of ecosystem health function and response.

Carry out River Murray Water Quality monitoring program as supported by

joint governments.

Develop method for estimating salt discharge from River Murray system.

Produce material to support implementation of the Water Quality and Salinity

Management Plan.

Prepare salinity registers and reports.

Compile, analyse and report water quality data.

Develop an agreed position on the links and interactions between the Basin Plan

and Schedule B of the Murray-Darling Basin (MDB) Agreement.


Develop partnerships with research institutions and agencies to give effect to

the MDBA science and research strategy.

Develop indicators for monitoring and evaluating the long-term social,

economic and environmental impacts of the Basin Plan.

Progress the adoption of integrated water resource modelling to support the

development and implementation of the Basin Plan.

Complete Stage 1 of the Cultural Flows research project.

Establish information co-ordination and collaboration arrangements to enhance

MDBA's access to the best data, information and knowledge.

Establish the MDBA website as the primary source of information for

stakeholders.

Develop communication products to promote availability of information to

stakeholders.


Carry out annual planned maintenance and renewals program according to

contemporary best practice.

Reduce risks associated with joint venture assets to acceptable levels in

accordance with jurisdictional dam safety regulations through the Dam

Improvement program.

Progress and/or complete Environmental Works and Measures projects.

Operate and maintain existing salt interception schemes in accordance with the

Corporate Plan and agreed operating rules and operating and maintenance

procedures.


192

Conduct day to day operation of the River Murray System assets in accordance

with the objectives and outcomes set by the Basin Officials Committee.

Transparently determine State Water Entitlements in accordance with the

Agreement.

Effectively maintain the River Murray system water accounts.



Reporting, evaluation and audit activities indicate that Basin Plan

implementation is:

o improving the health of water-dependent ecosystems and ecosystem

functions in the Basin;

o facilitating water reaching its most productive use; and

o contributing to productive and resilient water-dependent industries.

Basin Plan actions on SDL adjustment, constraints management, northern basin

work program and review of certain groundwater SDLs demonstrate a balanced

approach to achieving social, economic and environmental outcomes.

Progressive accreditation of state water resource plans that meet the Basin Plan

requirements for sustainable and adaptable water management.

Basin Plan implementation activities give effect to the principle of adaptive

management.

Compliance with SDLs.

Compliance with water trading rules.

Effective management of critical human water needs during times of severe

water shortage.

Effective arrangements in place for working with Basin governments in Basin

Plan implementation, with a rolling implementation work program updated

annually.

Local knowledge and solutions inform the implementation of the Basin Plan.


Basin Plan implementation is improving the health of water-dependent

ecosystems and ecosystem functions in the Basin as indicated by the targets in

Schedule 7 of the Basin Plan.

Basin Annual and long term Environmental Watering Priorities are met.

Basin Annual Environmental Watering Priorities add a Basin perspective over

and above state priorities.


193

Reduced barriers to the efficient and effective use of environmental water.

Positive report of the Independent River Operations Review Group (IRORG)

endorsed by the Basin Officials Committee in relation to TLM water.

Assessment method for Environmental equivalency component of the SDL

adjustment mechanism supported by peer review.

Published evidence on river health of the Basin aligned to the requirements of

the Basin Plan (Chapter 13 and Schedule 7).

Annual revisions to Basin Annual Environmental Watering Priorities take

account of experience from previous water years.

Water quality and salinity targets in the Basin Plan are met and risks are

considered and mitigated, consistent with clauses 8.36, 8.58 and 9.14 of the Basin

Plan.

Salinity accountability framework assists governments in meeting agreed

outcomes.


Knowledge gaps are identified and priority gaps are addressed.

Adoption of integrated water resource modelling across the Basin.

Evaluation of Basin Plan effectiveness is well supported by evidence.

Increased stakeholder access to data and information.


No adverse rulings from jurisdictional dam safety regulators.

Annual inspection assesses all assets to have achieved a good or high standard

of maintenance.

Environmental Works and specific projects are managed efficiently to achieve

their objectives and are maintained to contemporary standards.

Positive annual performance report for all salt interception schemes.

Positive report on River Murray System operations of the IRORG endorsed by

the Basin Officials Committee.


194







expenditure.



There are no movements of administered funds between years for the MDBA.






MDBA.


Opening Closing


2013-14 2013-14 2013-14 2013-14 2013-14

2012-13 2012-13 2012-13 2012-13 2012-13

Outcome $'000 $'000 $'000 $'000 $'000

Murray-Darling Basin Special Account (D)* 129,187 152,983 (211,521) - 70,649


2013-14 Budget estimate 129,187 152,983 (211,521) - 70,649


2012-13 estimated actual 196,456 173,482 (240,751) - 129,187

* Established under s21 FMA Act [s209 Water Act 2007 - Act No. 137] (D) = Departmental The MDBA is in receipt of Interest Equivalency Payment (IEP) of $5.230 million. IEP is included in the

receipts to the MDB Special Account.



applicable because the MDBA has no Indigenous-specific expenses.


195

3.2 Budgeted financial statements



Papers and Portfolio Budget Statements as a result of differences between Australian

Accounting Standards (AAS) and Government Finance Statistics (GFS).


Revenue credited to the MDB Special Account is from three sources:

Australian Government Departmental appropriation for Basin Plan functions and interest equivalency;

Australian Government contribution to the Agreement functions; and

State and Territory Government contributions and other income sources (e.g.

property revenues, hydro generation and sale of assets) for the Agreement

functions.

Changes in 2013–14 appropriation revenue reflect the following adjustments:

new funding as detailed in the notes to Table 1.2;

additional funding of $19.1 million provided via transfer from the Department of

Sustainability, Environment, Water, Population and Communities for the

implementation of the Basin Plan;

a reduction of $4.2 million in interest equivalency due to the reducing balance

being held in the MDB Special Account;

a reduction of $2.8 million in the MDBA base funding;

a reduction of $3.3 million reflecting completion of dam safety program at Hume

Dam; and

a reduction of $0.3 million in the MDBA base funding due to the net result of

changes in parameter adjustments and efficiency dividends/adjustments

including other Departmental savings.

Australian Government and state and territory government contributions to the

Agreement joint programs, which are reflected as grants income in the Financial

Statements and grants cash in the balance sheet, for 2013–14 are estimates based on

current advice from Basin jurisdictions. This advice incorporates a further reduction in

contributions by New South Wales from 2013–14 of $3.5 million. The final 2013–14

contributions are to be confirmed by Basin jurisdictions prior to 30 June 2013.

Contributions for 2014–15 and beyond are also estimates only and reflect current

advice from Basin jurisdictions regarding future funding of joint programs, and

incorporates the forecast reduction of 50 per cent in contributions (approximately

$13.2 million) by South Australia from 2014–15. The Murray-Darling Basin Ministerial

Council will consider options for alternative cost sharing, governance and institutional


196

arrangement for the delivery of joint programs including for the maintenance of

existing and future jointly owned assets during 2013–14. Any changes in contributions

will be reflected in the 2014–15 Portfolio Budget Statements.

The expenses, both employees and suppliers, have been revised reflecting the net

result of the appropriation and reductions in revenues resulting from the revised

contributions to joint programs outlined above.

The MDBA has budgeted for an operating deficit in 2013–14 which reflects the

completion of a number of environmental works and measures projects for which

funds are held in the Murray-Darling Basin Special Account.

Administered expenses have been included for the first time reflecting the new

administered measures detailed in note of Table 1.2 for the South Australia Riverland

floodplain integrated infrastructure projects which will commence in 2013–14.


197





2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES


Suppliers 182,413 154,789 92,331 83,303 82,075


Total expenses 222,469 195,553 134,664 124,345 123,286

LESS:

OWN-SOURCE INCOME

Own-source revenue

Grants 100,187 86,657 73,435 73,435 73,435

Royalties 600 477 477 477 477

Other 3,315 1,844 1,844 1,844 1,844




services 118,367 106,575 58,908 48,589 47,530



the Australian Government (67,713) (58,662) (12,267) - -



Total comprehensive income (loss) (67,713) (58,662) (12,267) - -



Government (67,713) (58,662) (12,267) - -




revenue appropriations. (67,713) (58,662) (12,267) - -

less depreciation/amortisation expenses

previously funded through revenue - - - - -

appropriations1



Comprehensive Income (67,713) (58,662) (12,267) - - Note: Impact of Net Cash Appropriation Arrangements Prepared on Australian Accounting Standards basis. 1 From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations.

For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement. The MDBA does not receive a Departmental Capital Budget in 2013–14 (refer to table 3.2.5 for further

details).


198




2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets



Other f inancial assets 459 459 459 459 459




Intangibles 2,108 2,276 1,943 1,943 1,943



Assets held for sale - - - - -

Total assets 140,186 81,524 69,257 69,257 69,257

LIABILITIES

Payables

Suppliers 37,518 37,543 37,683 37,823 37,919

Other payables 3,693 3,693 3,693 3,693 3,693

Total payables 41,211 41,236 41,376 41,516 41,612

Interest bearing liabilities

Other interest bearing liabilities 656 481 306 131 -

Total interest bearing liabilities 656 481 306 131 -

Provisions





Net assets 87,559 28,897 16,630 16,630 16,630

EQUITY*


Contributed equity (11,199) (11,199) (11,199) (11,199) (11,199)

Reserves 87 87 87 87 87

Retained surplus 98,671 40,009 27,742 27,742 27,742


Total Equity 87,559 28,897 16,630 16,630 16,630 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.


199




reserve capital

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



previous period 98,671 87 - (11,199) 87,559

Adjusted opening balance 98,671 87 - (11,199) 87,559


Surplus (deficit) for the period (58,662) (58,662)


of w hich:

Attributable to the Australian

Government(58,662) - - - (58,662)


as at 30 June 2014 40,009 87 - (11,199) 28,897


Australian Government 40,009 87 - (11,199) 28,897



200




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Appropriations 50,654 47,913 46,641 48,589 47,530

Receipts from Government


services600 477 477 477 477

Cash from Official Public Account 67,269 58,538 11,408 (306) (312)

Grants cash received 100,187 86,657 73,435 73,435 73,435

Net GST received 18,726 16,092 9,704 8,712 5,696

Other 3,315 1,844 1,844 1,844 1,844


Cash used

Employees 37,452 38,480 39,429 38,691 38,854

Suppliers 201,289 171,031 102,070 92,050 87,806

Total cash used 238,741 209,511 141,499 130,741 126,660




Cash received


Cash used


and equipment 2,010 2,010 2,010 2,010 2,010

Total cash used 2,010 2,010 2,010 2,010 2,010



Financing activities






201



2012-13 2013-14 2014-15 2015-16 2016-17

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


ASSETS


departmental resources 12,010 2,010 2,010 2,010 2,010

TOTAL 2,010 2,010 2,010 2,010 2,010




Total purchases 2,010 2,010 2,010 2,010 2,010

Total cash used to

acquire assets 2,010 2,010 2,010 2,010 2,010 1 Purchase of the non-financial assets are funded from non-appropriation receipts. The MDBA does not

receive a Departmental Capital Budget in 2013–14. Prepared on Australian Accounting Standards basis.

Mu

rray-D

arling

Basin

Au

thority

Bu

dg

et Statem

ents

202




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


Gross book value - - 5,086 - - 6,871 - - 11,957


and impairment - - (2,144) - - (4,763) - - (6,907)

Ope ning ne t book ba la nc e - - 2 ,9 4 2 - - 2 ,10 8 - - 5 ,0 5 0




By purchase - other1

- - 425 - - 1,585 - - 2,010

Tota l a dditions - - 4 2 5 - - 1,5 8 5 - - 2 ,0 10

Othe r move me nts

Depreciation/amortisation expense - - (717) - - (1,417) - - (2,134)

Tota l othe r move me nts - - (7 17 ) - - (1,4 17 ) - - (2 ,13 4 )

As a t 3 0 June 2 0 14

Gross book value - - 5,511 - - 8,456 - - 13,967


and impairment - - (2,861) - - (6,180) - - (9,041)

Closing ne t book ba la nc e - - 2 ,6 5 0 - - 2 ,2 7 6 - - 4 ,9 2 6 1 Purchase of 'Other property, plant and equipment' and internally developed software (Intangibles) are funded from non-appropriation receipts.



203




2012-13 2013-14 2014-15 2015-16 2016-17

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



Grants - 3,000 7,000 25,000 40,000


on behalf of Government - 3,000 7,000 25,000 40,000

LESS:

OWN-SOURCE INCOME

Total taxation revenue - - - - -


Total non-taxation revenue - - - - -




Gains

Total gains administered

on behalf of Government - - - - -





services - 3,000 7,000 25,000 40,000

Surplus (deficit) - (3,000) (7,000) (25,000) (40,000)

Total comprehensive income (loss) - (3,000) (7,000) (25,000) (40,000) Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June) The Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government do not apply to the Murray-Darling Basin Authority.


204




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Net GST received - 300 700 2,500 4,000

Total cash received - 300 700 2,500 4,000

Cash used

Grant - 3,300 7,700 27,500 44,000

Total cash used - 3,300 7,700 27,500 44,000


operating activities - (3,000) (7,000) (25,000) (40,000)


cash held - (3,000) (7,000) (25,000) (40,000)


- Appropriations - 3,000 7,000 25,000 40,000

- 3,000 7,000 25,000 40,000


of reporting period - - - - -

Table 3.2.10: Schedule of Administered Capital Budget Statement The MDBA is not in receipt of Administered Capital Budget. The Schedule of Administered Capital Budget statement does not apply to the Murray-Darling Basin Authority.

Table 3.2.11: Statement of Administered Asset Movements (2013-14)

There are no movement of Administered assets for the Murray-Darling Basin

Authority.

205



207

NATIONAL WATER COMMISSION



Section 2: Outcomes and Planned Performance ................................................... 212 2.1 Outcomes and Performance Information ...................................................... 212




209

NATIONAL WATER COMMISSION



The National Water Commission (NWC) is an independent statutory authority whose

key responsibilities are to provide independent assurance of governments’ progress on

water reform and to promote the objectives and outcomes of the Intergovernmental

Agreement on a National Water Initiative (NWI). The NWC was created as a result of

the NWI, and formally established by the National Water Commission Act 2004.

The NWC has one outcome – informed decisions by governments on national water

issues, and improved management of Australia’s water resources, through advocacy,

facilitation and independent advice.

In addition to meeting its functional requirements under the National Water Commission

Act 2004, the NWC is required under other Commonwealth legislation or agreements

to independently undertake a number of activities and to provide advice and reports.

The NWC has an ongoing function established under the Water Act 2007 to audit the

effectiveness of the implementation of the Murray-Darling Basin Plan and associated

water resource plans. The NWC also has functions under the Carbon Credits (Carbon

Farming Initiative) Regulations 2011.

In 2013–14 the NWC will continue to deliver on its functions as set out in its strategic

work program which has been formulated through consultation with the

Commonwealth and state and territory governments, industry and other stakeholders,

and the Council of Australian Governments (COAG).

Additional funding has been provided from 2013–14 for the NWC to conduct

assessments of Murray-Darling Basin states’ performance in meeting their agreed

milestones under the National Partnership Agreement on Implementing Water Reform

in the Murray-Darling Basin.

National Water Commission Budget Statements

210




classification.

Table 1.1: National Water Commission Resource Statement

Budget estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual



available in

2013- 14 2013- 14 2013- 14 2012- 13

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



Prior year departmental appropriation2 5,470 - 5,470 5,774

Departmental appropriation - 8,314 8,314 10,217

Tota l 5 ,4 7 0 8 ,3 14 13 ,7 8 4 15 ,9 9 1


Outcome 1 - Water reform - - - 3,371

Tota l - - - 3 ,3 7 1

Tota l ordina ry a nnua l se rvic e s A 5 ,4 7 0 8 ,3 14 13 ,7 8 4 19 ,3 6 2

Othe r se rvic e s3

De pa rtme nta l non- ope ra ting

Equity injections4

- 1,238 1,238 -

Tota l B - 1,2 3 8 1,2 3 8 -


a ppropria tions (A+B) 5 ,4 7 0 9 ,5 5 2 15 ,0 2 2 19 ,3 6 2

Tota l re sourc ing

A+B 5 ,4 7 0 9 ,5 5 2 15 ,0 2 2 19 ,3 6 2

Reader note: All figures are GST exclusive. 1 Appropriation Bill (No.1) 2013-14

2 Estimated adjusted balance carried forward from previous year

3 Appropriation Bill (No. 2) 2013-14

4 Includes an amount of $1.238 million in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5

for further details). For accounting purposes this amount has been designated as 'contributions by owners'.


211

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the National Water Commission are detailed in

Budget Paper No. 2 and are summarised below.

Table 1.2: Agency 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO

Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Expense measures

Murray-Darling Basin Plan - additional

support 1 1.1


Departmental expenses - (14) (15) (16) (17)

Total expense measures - (14) (15) (16) (17)



Departmental - (14) (15) (16) (17)

Total - (14) (15) (16) (17) Prepared on a Government Finance Statistics (fiscal) basis. 1 This measure represents as a decision taken not yet announced at 2012–13 Mid-Year Economic and Fiscal

Outlook. $3.43 million over 7 years will be provided to the National Water Commission to undertake assessments of the Basin States performance against agreed milestones. Refer Murray-Darling Basin Authority and Sustainability, Environment, Water, Population and Communities chapters for additional related components of the total Murray-Darling Basin Plan – additional support measure.


Program 2012-13 2013-14 2014-15 2015-16 2016-17

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

Saving measures


efficiencies 1.1


Departmental expenses (35) (48) (99) (122) (119)

Total saving measures (35) (48) (99) (122) (119)

Total measures


Departmental (35) (48) (99) (122) (119)

Total (35) (48) (99) (122) (119) Prepared on a Government Finance Statistics (fiscal) basis.


212










National Water Commission (NWC) in achieving Government outcomes.

Outcome 1: Informed decisions by governments on national water issues, and improved management of Australia’s water resources, through advocacy, facilitation and independent advice.

Outcome 1 Strategy

The outcome will be achieved through:

providing strategic assessments, independent advice and recommendations to the

Commonwealth of Australian Governments (COAG), the Minister for

Sustainability, Environment, Water, Population and Communities, and to the

federal, state and territory governments on the implementation of the National

Water Initiative (NWI);

reporting to the Commonwealth Parliament, through the Minister; and to state and

territory governments on the performance of the Murray-Darling Basin Authority

(MDBA) and Murray-Darling Basin states in implementing the Murray-Darling

Basin Plan and associated water resource plans;

assessment of Murray-Darling Basin states’ performance in meeting their agreed

milestones under the National Partnership Agreement on Implementing Water

Reform in the Murray-Darling Basin;

conducting assessment and monitoring of water reform issues, including

identifying priority and emerging issues that impact on the sustainability and use

of Australia’s water resources; and

consulting with COAG, jurisdictions and other stakeholders to identify priorities

for water reform.

The NWC will maintain a high level of consultation with COAG and other

stakeholders to ensure its strategic work program is directed towards priority

assessment, monitoring and review matters so as to ensure the NWC’s work delivers

the best outcome for water reform.


213

As required by the National Water Commission Act 2004, every 3 years the NWC will

undertake an assessment and report to COAG on jurisdictions’ performance in

meeting NWI commitments. The first such triennial assessment is due to be provided

by the end of 2014.

The ongoing function of auditing the Murray-Darling Basin Plan and associated water

resource plans will also further the NWC’s role in providing independent advice on

water management matters. This function requires the NWC to report to the

Commonwealth Parliament, through the Minister, and to COAG and Murray-Darling

Basin states on the Murray-Darling Basin Plan, and the states’ performance in

implementing the Murray-Darling Basin Plan.




2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000



Ordinary annual services (Appropriation Bill No. 1) 3,371 -





2012-13 2013-14


Outcome 1: Informed decisions by governments on

national water issues, and improved management of

Australia's water resources through advocacy,

facilitation and independent advice

1 Departmental Appropriation is ‘Ordinary annual services (Appropriation Bill No. 1)’.


Expense 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.


214



Program objectives

To assist with the implementation of the NWI and water reform by:

assessing, monitoring and providing advice and recommendations on priority

national issues related to water management in Australia and on progress in

implementing the NWI;

independently auditing the effectiveness of the implementation of the Murray-

Darling Basin Plan and associated water resource plans; and

working with all Australian governments and other stakeholders to facilitate

water reform initiatives.

Program Expenses

The level of NWC expenses funding in 2013–14 and future years for supplier costs

has been reduced from the 2012–13 level reflecting Budget decisions announced in

2012–13 following a review of the NWI’s ongoing role and functions. Additional

funding has been provided from 2013–14 to meet the costs of the new role of

assessing Basin states’ performance under the National Partnership Agreement on

Implementing Water Reform in the Murray-Darling Basin.

The administered appropriation in 2012–13 was provided to meet the cost of Raising

National Water Standards (RNWS) projects not complete at 30 June 2012 on the

closure of the program. All RNWS projects will be completed in 2012–13 and no

future Administered appropriation is required.

Program Expenses 1.1: Water Reform

2012-13 2013-14 2014-15 2015-16 2016-17



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


Other 3,371 - - - -


Employees 6,104 5,771 5,914 6,061 6,213

Suppliers 4,113 2,543 2,427 2,390 2,325

Program support


the Budget year 1 354 421 510 487 395

Total program expenses 13,942 8,735 8,851 8,938 8,933 1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation

Expense and Audit Fees.


215


Audits, assessments and monitoring activities on priority national issues related

to water management in Australia and on progress in implementing the NWI.

An audit of the MDBA, Murray-Darling Basin states and other relevant entities

implementation of the Murray-Darling Basin Plan and associated water resource

plans, tabled in the Parliament.

Assessment of Murray-Darling Basin states’ performance in implementing

agreed milestones under the National Partnership Agreement on Implementing

Water Reform in the Murray-Darling Basin.

Information and advice to governments, stakeholders and the community to

inform improved water management.

2012-13 2013-14 2014-15 2015-16 2016-17

Revised Budget Forward Forward Forward Deliverables budget year 1 year 2 year 3

Assessment of progress of parties towards addressing the objectives and outcomes of the NWI completed - - Yes - -

Assessments of other matters relating to the NWI conducted Yes Yes Yes Yes Yes

Murray-Darling Basin audits completed and reports provided to the Minister Yes - - Yes - Assessment of Murray-Darling Basin states' performance in implementing water reform in the Murray-Darling Basin completed - Yes Yes Yes Yes

Monitoring conducted of areas that are significant to the NWI Yes Yes Yes Yes Yes


216


Strategic assessments and advice provided to the Minister and COAG on

national water reform issues;

Assessments of Basin states’ performance in implementing agreed reform in the

Murray-Darling Basin completed;

Murray-Darling Basin audits are undertaken as required by the Water Act 2007;

Effective engagement with all Australian governments and other stakeholders

on the NWC’s work program to facilitate water reform initiatives.

2012-13 2013-14 2014-15 2015-16 2016-17



Assessments and advice to the

Minister and COAG are credible

and independent Yes Yes Yes Yes Yes

Murray-Darling Basin audits

completed and provided to the

Minister Yes - - Yes -

Work program contributes to

implementation of w ater reform Yes Yes Yes Yes Yes


217



a comprehensive snapshot of National Water Commission (NWC) finances for the

2013–14 budget year. It explains how budget plans are incorporated into the financial

statements and provides further details of the reconciliation between appropriations

and program expenses, movements in administered funds, special accounts and

Australian Government Indigenous expenditure.



There are no movement of administered funds between years for the NWC.


The NWC does not operate a special account.


The Australian Government Indigenous Expenditure Statement 2013–14 is not

applicable because the NWC has no Indigenous specific expenses.


218





Australian Accounting Standards (AAS) and Government Financial Statistics (GSF).


The reduction in the level of funding in 2013–14 compared to that provided in 2012–13

is due to the government’s decision on NWC funding levels in the 2012–13 Budget

following a review of the ongoing role and functions of the NWC and amendment of

its enabling legislation.

Departmental appropriation in 2013–14 will enable the NWC to achieve key

deliverables contained within its strategic work program. This includes new additional

funding of $0.5 million in 2013–14 and a total of $3.4 million over seven years from

2013–14, for the NWC to undertake a new role of conducting assessments of Murray-

Darling Basin states’ performance in meeting the agreed milestones under the National

Partnership Agreement on Implementing Water Reform in the Murray-Darling Basin.

Administered appropriation in 2012–13 was provided for expenditure on projects

under the Raising National Water Standards program which were not completed by

30 June 2012 on the closure of the program, and to meet minor employee liabilities.

A departmental equity injection of $1.2 million will be provided in 2013–14 to meet

capital expenditure associated with relocating office accommodation and make good

of current leased accommodation, on the cessation of the current lease on 30 June 2014.

The current leased office accommodation is in excess of the NWC’s ongoing needs

following the reduction in staff numbers in the 2012–13 Budget.


219





2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES


Suppliers 4,189 2,619 2,503 2,466 2,401


Total expenses 10,571 8,735 8,851 8,938 8,933

LESS:

OWN-SOURCE INCOME

Own-source revenue

Total own-source revenue - - - - -

Gains

Other 76 76 76 76 76

Total gains 76 76 76 76 76

Total own-source income 76 76 76 76 76


services 10,495 8,659 8,775 8,862 8,857

Revenue from Government 10,217 8,314 8,341 8,451 8,538


the Australian Government (278) (345) (434) (411) (319)



Government (278) (345) (434) (411) (319)




revenue appropriations. - - - - -

Less depreciation/amortisation expenses


appropriations1 278 345 434 411 319



Comprehensive Income (278) (345) (434) (411) (319) 1 From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.



220




2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets





Land and buildings 129 1,215 985 746 507

Property, plant and equipment 134 209 104 32 40

Intangibles 64 69 70 70 82


Total non-financial assets 432 1,598 1,264 953 734


Total assets 5,897 6,797 6,363 5,952 5,633

LIABILITIES

Payables

Suppliers 222 222 222 222 222

Other payables 44 44 44 44 44

Total payables 266 266 266 266 266

Provisions





Net assets 3,880 4,773 4,339 3,928 3,609

EQUITY*



Reserves 595 595 595 595 595

Retained surplus

(accumulated deficit) 1,364 1,019 585 174 (145)


Total Equity 3,880 4,773 4,339 3,928 3,609 Prepared on Australian Accounting Standards basis. * 'Equity' is the residual interest in assets after deduction of liabilities.


221




reserve capital

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



previous period 1,364 595 - 1,921 3,880

Adjusted opening balance 1,364 595 - 1,921 3,880


Other comprehensive income - - - - -

Surplus (deficit) for the period (345) - - - (345)

Total comprehensive income (345) - - - (345)

of w hich:

Attributable to the Australian Government (345) - - - (345)



Equity Injection - Departmental capital

Budget (DCB)- - - 1,238 1,238

Sub-total transactions with owners - - - 1,238 1,238


as at 30 June 2014 1,019 595 - 3,159 4,773


Australian Government 1,019 595 - 3,159 4,773 Prepared on Australian Accounting Standards basis.


222




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received

Appropriations 10,521 8,711 8,441 8,551 8,638


Cash used

Employees 6,235 5,764 5,914 6,061 6,213

Suppliers 4,126 2,556 2,427 2,390 2,325

Total cash used 10,361 8,320 8,341 8,451 8,538


operating activities 160 391 100 100 100


Cash received - - - - -


Cash used

Purchase of property, plant (160) (1,511) (100) (100) (100)

and equipment

Total cash used (160) (1,511) (100) (100) (100)


investing activities (160) (1,511) (100) (100) (100)


Cash received

Contributed equity - 1,238 - - -

Total cash received - 1,238 - - -

Cash used



financing activities - 1,238 - - -


in cash held - 118 - - -




end of the reporting period 127 245 245 245 245 Prepared on Australian Accounting Standards basis.


223



2012-13 2013-14 2014-15 2015-16 2016-17

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


Equity injections - Bill 2 - 1,238 - - -

Total new capital appropriations - 1,238 - - -

Provided for:

Purchase of non-financial assets - 1,238 - - -

Total Items - 1,238 - 8,314 -


ASSETS

Funded by capital appropriations 1- 1,238 - - -


departmental resources 2160 273 100 100 100

TOTAL 160 1,511 100 100 100




Total purchases 160 1,511 100 100 100

Total cash used to

acquire assets 160 1,511 100 100 100 Prepared on Australian Accounting Standards basis. 1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations

2 Funding source includes current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from

DCB)

Nation

al Water C

omm

ission B

ud

get S

tatemen

ts

224




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


Gross book value - 418 298 - - 350 - - 1,066


and impairment - (289) (164) - - (286) (739)

Ope ning ne t book ba la nc e - 12 9 13 4 - - 6 4 - - 3 2 7





- 1,238 - - - - - - 1,238


annual services 2

- - 238 - - 35 - - 273

Tota l a dditions - 1,2 3 8 2 3 8 - - 3 5 - - 1,5 11

Othe r move me nts

Depreciation/amortisation expense - (152) (163) (30) (345)

Tota l othe r move me nts - (15 2 ) (16 3 ) - - (3 0 ) - - (3 4 5 )

As a t 3 0 June 2 0 14

Gross book value - 1,656 536 - - 385 - - 2,577


and impairment - (441) (327) - - (316) - - (1,084)

Closing ne t book ba la nc e - 1,2 15 2 0 9 - - 6 9 - - 1,4 9 3

Prepared on Australian Accounting Standards basis. 1 "Appropriation equity" refers to equity injections provided through Appropriation Bill (No.2) 2013-14.

2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other

operational expenses.


225




2012-13 2013-14 2014-15 2015-16 2016-17

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



Employee benefits 30 - - - -

Suppliers 3,341 - - - -


on behalf of Government 3,371 - - - -

LESS:

OWN-SOURCE INCOME





services 3,371 - - - -

Surplus (Deficit) (3,371) - - - -

Total comprehensive income (loss) (3,371) - - - - Prepared on Australian Accounting Standards basis.


226




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received


Cash used

Employee 30 - - - -

Suppliers 3,341 - - - -

Total cash used 3,371 - - - -


operating activities (3,371) - - - -


cash held (3,371) - - - -


beginning of reporting period - - - - -


- Appropriations 3,371 - - - -

3,371 - - - -


of reporting period - - - - - Prepared on Australian Accounting Standards basis.

227

Sydney Harbour Federation

Trust


229

SYDNEY HARBOUR FEDERATION TRUST








231

SYDNEY HARBOUR FEDERATION TRUST



The Sydney Harbour Federation Trust (SHFT) 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 Head 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 at Neutral Bay.

SHFT 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 site.

Over its life SHFT’s focus has moved from predominantly community consultation

and planning to rehabilitation of lands and buildings, leasing and public programs.

SHFT is progressing well with its plans and from a works perspective is approximately

90 per cent through its program of remediation and rehabilitation of the lands and

buildings (except the former HMAS Platypus). As decontamination, conservation,

refurbishment and rehabilitation of sites is completed, the emphasis of SHFT’s

activities is moving increasingly towards management and maintenance, increasing

visitation and enhancing the visitor and tenant experience. The extension of the life of

SHFT to 2033 has influenced the way the organisation views itself and its operations,

with a renewed emphasis on its long-term financial sustainability.

SHFT’s goals for 2013–14 and the forward estimates are to continue to focus on the

sustainability of our precincts to ensure we leave them preserved for future

generations. SHFT will also focus attention and resources on greater community

engagement, enhancing the visitor and tenant experience and encouraging public use,

understanding and enjoyment of SHFT sites. SHFT is expanding its network of

volunteers and pursuing partnerships with both cultural and corporate organisations

to improve SHFT’s capacity to implement its charter.

During 2013–14 the final remediation stage of the decontamination works at HMAS

Platypus, Neutral Bay will be completed in late December 2013. The SHFT will prepare

a more detailed plan for the rehabilitation and adaptive re-use of the site post

decontamination.

Sydney Harbour Federation Trust Budget Statements

232

In 2013–14 and the forward years, the SHFT will continue to improve public

awareness, access and appreciation of the natural and cultural values of the former

Artillery School and North Fort at North Head. It will also improve visitor services,

amenities and accommodation integrated with event use at Cockatoo Island.

SHFT is now solely reliant on its own income generation as it no longer receives a

Commonwealth appropriation. Accordingly, SHFT is committed to improving existing

revenue streams and identifying new revenue sources.


233




classification.

Table 1.1: Sydney Harbour Federation Trust Resource Statement

Budget Estimates for 2013-14 as at Budget May 2013




available in

2013- 14 2013- 14 2013- 14 2012- 13

Source $'000 $'000 $'000 $'000

Ope ning ba la nc e /Re se rve s a t ba nk 5 1,7 17 5 1,7 17 8 0 ,5 5 5

REVENUE FROM GOVERNMENT

FUNDS FROM INDUSTRY SOURCES

FUNDS FROM OTHER SOURCES

Interest - 818 818 737

Royalties - - - -

Sale of goods and services - 3,104 3,104 2,820

Other - 11,230 11,230 11,849

Tota l - 15 ,15 2 15 ,15 2 15 ,4 0 6

Tota l ne t re sourc ing for a ge nc y 5 1,7 17 15 ,15 2 6 6 ,8 6 9 9 5 ,9 6 1 All figures are GST exclusive

1.3 BUDGET MEASURES

There are no Budget measures relating to the SHFT in 2013–14.


234

Section 2: Outcomes and planned performance









Sydney Harbour Federation Trust (SHFT) in achieving Government outcomes.

Outcome 1: Enhance 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.

Outcome 1 Strategy

Over the forward estimates SHFT’s focus will be on greater community engagement

and enhancing the visitor experience. During this period SHFT will encourage public

use, understanding and enjoyment of its sites through its interpretation projects, public

programs and enhanced visitor services and facilities. To this end, SHFT has

committed to deliver a program of events through the year and expand opportunities

for third party events, meetings and conferencing on Cockatoo Island.

Rehabilitation and building works on the unfinished sites will also be a key focus.

Works to complete the Middle Head site are expected within 2013–14, including the

refurbishment of the barracks buildings and 10 terminal complex. SHFT will continue

to develop and deliver program content on Cockatoo Island during 2013–14.

Conservation works on the World Heritage listed convict structures and their

interpretation will continue.

Works are underway at the North Head Sanctuary site. By the end of 2013–14 these

improvements will help to integrate access through the site with the surroundings,

conserve and interpret its Indigenous, institutional and military heritage as well as

offer scope for research, education and leasing opportunities. The major

decontamination stage of the works at HMAS Platypus which commenced during

2011–12 will be completed in December 2013.


235




2012-13 2013-14

Estimated Estimated

actual expenses

expenses

$'000 $'000

Program 1.1: Sydney Harbour Federation Trust



Outcome 1 Totals by resource type



2012-13 2013-14


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

1Departmental Appropriation is ‘Ordinary annual services (Appropriation Bill No. 1)’.


Expense and Audit Fees.


236


Program 1: Sydney Harbour Federation Trust

Program Objective

The transformation of its sites into precincts and parklands that will enrich the

cultural and historical values of the city, whilst conserving the environmental

integrity and unique heritage of the sites. This includes:

increasing public awareness, appreciation and enjoyment of the Sydney

Harbour Federation sites;

ensuring the public lands are restored, maintained and kept in good repair;

leasing and hiring of residential and commercial buildings to bring compatible

activities to the sites, and generate revenue; and

ensuring the financial sustainability of the ongoing management and operations.

Program Expenses

To undertake works and develop programs and facilities to ensure SHFT sites are

progressively rehabilitated, conserved and made available for public use and

enjoyment.

Program Expenses 1.1

2012-13 2013-14 2014-15 2015-16 2016-17



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

Program support 14,533 14,194 16,207 16,637 17,227


the Budget year 1 2,192 2,312 2,411 2,491 2,572

Total program expenses 16,725 16,506 18,618 19,128 19,799 1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation

Expense, Make good Expense, and Audit Fees.


237


To undertake works and develop programs and facilities to ensure SHFT sites

are progressively rehabilitated, conserved and made available for public use and

enjoyment.

2012-13 2013-14 2014-15 2015-16 2016-17



Total visitation to all sites [#] 600,000 660,000 720,000 790,000 870,000

Capital spend on rehabilitation and

conservation of sites [$m]

22 16 2 1 1

Capital spend on increasing amenity

and services on sites [$m]

3 2 1 1 1

Spend on heritage and cultural

interpretation [$m]

0.5 1 0.6 0.6 0.6

Percentage of total expenditure spent

on marketing and Public Relations [%]

3 4 4 4 4


238


Performance of this program is measured through reported increases in

awareness and visitation, site improvement, rehabilitation and conservation

activities undertaken.

2012-13 2013-14 2014-15 2015-16 2016-17



Percentage of increased visitation

on Trust sites from previous year

[%]

43 8 10 10 10

Number of SHFT site/buildings

new ly rehabilitated, conserved

and made available for public

enjoyment [#]

7 7 5 3 1

Percentage increase in revenue

from commercial operations from

previous year [%]

1 9 18 10 5

Number of w ebsite hits [#] 1,840,000 2,114,000 2,438,000 2,821,000 3,230,000

Positive media coverage [#] 600 625 650 700 700


239







expenditure.



There are no movements of administered funds for the SHFT.


There are no special accounts for the SHFT.



applicable because the SHFT has no Indigenous specific expenses.


240




Papers and Portfolio Budget Statements.


Income Statement

The SHFT has budgeted for a small operating surplus of $0.04 million in 2013–14.

Operating surpluses are maintained in forward years with an increasing trend in

profitability as new income streams are realised. SHFT receives no funding from the

government with its final capital appropriation received in 2009–10. The majority of

the SHFT’s income comes from the leasing of its rehabilitated heritage buildings.

Property leasing revenue is expected to increase by $1.3 million in 2013–14 with steady

growth in the out-years as new leasing opportunities are made available through the

remaining capital works program. Overall expenditure forecasts for the 2013–14

financial year are $16.5 million, a small decrease over 2012–13 estimated expenditure.

This reflects improvements in agency efficiencies and the allocation of additional

resources to the ongoing management and maintenance of SHFT sites as capital works

are completed.

Balance Sheet

The SHFT major assets are its lands and buildings, which it holds on behalf of the

Commonwealth. During 2013–14 the major remediation works will be completed at

HMAS Platypus. The cost of these works is offset against the provision held on the

balance sheet. In 2013–14 the value of SHFT’s non-financial assets is estimated to

increase by $0.5 million to $299.0 million as a result of SHFT’s continued capital works

program.

Equity injections from government for capital works program ceased in 2009–10.


241





2012-13 2013-14 2014-15 2015-16 2016-17

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

EXPENSES


Suppliers 7,761 7,204 8,780 8,950 9,272


Write-dow n and impairment of assets 267 20 20 20 20

Total expenses 16,725 16,506 18,618 19,128 19,799

LESS:

OWN-SOURCE INCOME

Own-source revenue


Interest 3,077 1,933 1,559 1,633 1,794

Other 3,646 3,321 3,417 3,824 3,946


Total gains - - - - -



services (27) (39) (1,492) (2,546) (2,938)


the Australian Government 27 39 1,492 2,546 2,938



Total comprehensive income (loss) 27 39 1,492 2,546 2,938



Government 27 39 1,492 2,546 2,938


(loss) excluding heritage and cultural

depreciation expenses previously

funded through revenue appropriations 27 39 1,492 2,546 2,938



Comprehensive Income 27 39 1,492 2,546 2,938

Prepared on Australian Accounting Standards basis. 1 From 2009-10, the Government replaced Bill 1 revenue appropriations for the heritage and cultural

depreciation expenses of designated Collection Institutions, with a separate capital budget (the Collection Development Acquisition Budget, or CDAB) provided through Bill 2 equity appropriations. For information regarding CDABs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


242




2012-13 2013-14 2014-15 2015-16 2016-17

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

ASSETS

Financial assets


Trade and other receivables 560 520 570 570 570

Other investments 46,422 31,912 33,312 36,712 39,112





Heritage & Cultural assets 32,803 33,142 33,142 33,142 33,142

Intangibles 1,141 1,014 881 769 666

Inventories 54 54 54 54 54



Total assets 350,830 337,070 338,241 340,749 343,599

LIABILITIES

Payables

Suppliers 1,970 425 225 225 225

Other payables 3,458 3,274 3,090 2,906 2,722

Total payables 5,428 3,699 3,315 3,131 2,947

Provisions


Other provisions 12,100 - - - -



Net assets 331,852 331,891 333,383 335,928 338,866

EQUITY*



Reserves 60,149 60,149 60,149 60,149 60,149

Retained surplus

(accumulated deficit) 13,968 14,007 15,499 18,044 20,982


Total Equity 331,852 331,891 333,383 335,928 338,866 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.


243




reserve capital

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



previous period 13,968 60,149 - 257,735 331,852

Adjustment for changes in

accounting policies - - - - -

Adjusted opening balance 13,968 60,149 - 257,735 331,852


Other comprehensive income - - - - -

Surplus (deficit) for the period 39 - - - 39

Total comprehensive income 39 - - - 39


as at 30 June 2014 14,007 60,149 - 257,735 331,891


Australian Government 14,007 60,149 - 257,735 331,891



244




2012-13 2013-14 2014-15 2015-16 2016-17

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


Cash received


services2,912 3,104 3,203 3,304 3,408

Interest 812 818 817 835 844

Grants 225 - - - -

Net GST received 170 40 20 - -

Other 10,185 11,230 15,002 16,443 17,230


Cash used

Employees 6,280 6,940 7,345 7,519 7,839

Suppliers 9,034 8,953 9,184 9,156 9,476

Total cash used 15,314 15,893 16,529 16,675 17,315


operating activities (1,010) (701) 2,513 3,907 4,167


Cash received

Other 121,885 63,903 40,619 41,693 40,854


Cash used


and equipment 30,366 14,875 2,000 2,000 2,000

Purchase of f inancial instruments

Investments 99,000 48,000 41,000 44,000 42,000

Other

Total cash used 129,366 62,875 43,000 46,000 44,000


investing activities (7,481) 1,028 (2,381) (4,307) (3,146)



in cash held (8,491) 327 132 (400) 1,021






245



2012-13 2013-14 2014-15 2015-16 2016-17

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


Total new capital appropriations - - - - -

Provided for:

Total Items - - - - -


ASSETS


departmental resources 30,366 14,875 2,000 2,000 2,000

TOTAL 30,366 14,875 2,000 2,000 2,000




Total purchases 30,366 14,875 2,000 2,000 2,000

Total cash used to

acquire assets 30,366 14,875 2,000 2,000 2,000 Prepared on Australian Accounting Standards basis.

Sy

dn

ey H

arbour F

ederation

Tru

st Bu

dg

et Statem

ents

246

Table 3.2.6: Statement of Asset Movements (2013-14) Land Buildings Other property, Heritage Investment Computer Other Total

plant and and cultural property software and


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


Gross book value 178,890 78,137 16,588 32,803 - 2,002 - 308,420


and impairment - (6,177) (2,883) - (861) - (9,921)

Ope ning ne t book ba la nc e 17 8 ,8 9 0 7 1,9 6 0 13 ,7 0 5 3 2 ,8 0 3 - 1,14 1 - 2 9 8 ,4 9 9




By purchase - other 500 1,336 600 339 - - - 2,775

Tota l a dditions 5 0 0 1,3 3 6 6 0 0 3 3 9 - - - 2 ,7 7 5

Othe r move me nts

Depreciation/amortisation expense - (1,318) (867) - - (127) - (2,312)

Disposals 3

Tota l othe r move me nts - (1,3 18 ) (8 6 7 ) - - (12 7 ) - (2 ,3 12 )

As a t 3 0 June 2 0 14

Gross book value 179,390 79,473 17,188 33,142 - 2,002 - 311,195


and impairment - (7,495) (3,750) - - (988) - (12,233)

Closing ne t book ba la nc e 17 9 ,3 9 0 7 1,9 7 8 13 ,4 3 8 3 3 ,14 2 - 1,0 14 - 2 9 8 ,9 6 2 Prepared on Australian Accounting Standards basis.

Documents

Portfolio Budget Statements 2013-14: Budget related paper ... · portfolio budget statements 2013-14 budget related paper no. 1.17 sustainability, environment, water, population and