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Portfolio Budget Statements 2017-18

Budget Related Paper No. 1.7Environment and Energy Portfolio

Budget Initiatives and Explanations of

Appropriations Specified by Outcomesand Programs by Entity

© Commonwealth of Australia 2017

ISBN 978-1-921069-06-2

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THE HON JOSH FRYDENBERG MPMINISTER FOR THE ENVIRONMENT AND ENERGY

PARLIAMENT HOUSECANBERRA 2600

President of the SenateAustralian SenateParliament HouseCANBERRA ACT 2600

SpeakerHouse of RepresentativesParliament HouseCANBERRA ACT 2600

Dear Mr PresidentDear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2017-18 Budget for the Environment and Energy Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the Portfolio.

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

Yours sincerely

Josh Frydenberg

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Abbreviations and conventionsThe following notation may be used:

NEC/nec not elsewhere classified- nil.. not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion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.

EnquiriesShould you have any enquiries regarding this publication please contact, Chief Financial Officer, Department of the Environment and Energy on (02) 6274 2203.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Statements) can be located on the Australian Government Budget website at: www.budget.gov.au.

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USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

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USER GUIDE

The purpose of the 2017-18 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by entities within the portfolio. Entities receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1 and No. 2) 2017-18 (or Appropriation (Parliamentary Departments) Bill (No. 1) 2017-18 for the parliamentary departments). In this sense, the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, only entities within the general government sector are included as part of the Commonwealth general government sector fiscal estimates and produce PB Statements where they receive funding (either directly or via portfolio departments) through the annual appropriation acts.

The Enhanced Commonwealth Performance Framework.

The following diagram outlines the key components of the enhanced Commonwealth performance framework. The diagram identifies the content of each of the publications and the relationship between them. Links to the publications for each entity within the Portfolio can be found in the introduction to Section 2: Outcomes and planned performance.

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Contents

PORTFOLIO OVERVIEW.................................................................Environment and Energy Portfolio overview...................................................................

ENTITY RESOURCES AND PLANNED PERFORMANCE........................Department of the Environment and Energy................................................................Australian Renewable Energy Agency.........................................................................Bureau of Meteorology...............................................................................................Clean Energy Finance Corporation............................................................................Clean Energy Regulator.............................................................................................Climate Change Authority..........................................................................................Director of National Parks..........................................................................................Great Barrier Reef Marine Park Authority...................................................................Sydney Harbour Federation Trust..............................................................................

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PORTFOLIO OVERVIEW

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ENVIRONMENT AND ENERGY PORTFOLIO OVERVIEW

Minister and Portfolio responsibilities

The Environment and Energy Portfolio is led by the Minister for the Environment and Energy and comprises the Department of the Environment and Energy and eight other entities.

Department of the Environment and Energy

The Department of the Environment and Energy advises on, and implements, environment and energy policy to support the Government in achieving a healthy environment, strong economy and thriving community now and into the future. The Department of the Environment and Energy is responsible for the following outcomes:

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

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

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

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

Australian Renewable Energy Agency

The Australian Renewable Energy Agency is a Corporate Commonwealth Entity1 established under the Australian Renewable Energy Agency Act 2011. The Australian Renewable Energy Agency is responsible for the Outcome:

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

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

The Australian Renewable Energy Agency’s key objectives are to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy. Its responsibilities include providing financial assistance for the research, development, demonstration, deployment and commercialisation of renewable energy and related technologies, and the storage and sharing of knowledge and information about renewable energy technologies. The Agency jointly manages the Clean Energy Innovation Fund with the Clean Energy Finance Corporation. The Australian Renewable Energy Agency collects, analyses, interprets and disseminates information and knowledge relating to renewable energy and related technologies and provides advice to the Minister for the Environment and Energy about these technologies and the renewable energy industry in Australia.

Bureau of Meteorology

The Bureau of Meteorology is a Non-corporate Commonwealth Entity2 and an Executive Agency3 operating under the Meteorology Act 1955 and the Water Act 2007. The Bureau of Meteorology is responsible for the Outcome:

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

The Bureau of Meteorology is Australia’s national meteorological authority. Its products and services include a dynamic range of observations, forecasts, warnings, analysis and advice covering Australia’s atmosphere, water, oceans and space environments. The Bureau of Meteorology’s work supports all Australians, including the Australian Defence Force and key sectors such as emergency management, aviation, transport, water management, agriculture and environmental management.

Clean Energy Finance Corporation

The Clean Energy Finance Corporation is a Corporate Commonwealth Entity established under the Clean Energy Finance Corporation Act 2012. The Clean Energy Finance Corporation is responsible for the Outcome:

2 ‘Non-corporate Commonwealth Entity’ as defined under the Public Governance, Performance and Accountability Act 2013.3 ‘Executive Agency’ as defined under the Public Service Act 1999.

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Portfolio overview

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

The Clean Energy Finance Corporation seeks to mobilise capital investment in renewable energy, low-emissions technology and energy efficiency in Australia through commercial loans, equity investments and in limited circumstances, loan guarantees. This includes three funding programs as directed by the Government through its Investment Mandate. One of these funding programs is the Clean Energy Innovation Fund which is a joint arrangement between the Clean Energy Finance Corporation and the Australian Renewable Energy Agency.

Clean Energy Regulator

The Clean Energy Regulator is a Non-corporate Commonwealth Entity established under the Clean Energy Regulator Act 2011. The Clean Energy Regulator is responsible for the Outcome:

Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

The Clean Energy Regulator provides data and information to Commonwealth organisations for policy development and to meet international reporting obligations. In addition, this information and data is provided to state and territory organisations to reduce their need to duplicate emissions and energy reporting.

Climate Change Authority

The Climate Change Authority is a Non-corporate Commonwealth Entity and a Statutory Agency4 operating under the Climate Change Authority Act 2011. The Climate Change Authority is responsible for the Outcome:

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

Director of National Parks

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

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Portfolio overview

The Director of National Parks is a Corporate Commonwealth Entity operating under the Environment Protection and Biodiversity Conservation Act 1999. The Director of National Parks is responsible for the Outcome:

Management of Commonwealth reserves as outstanding natural places that enhance Australia’s well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

The Director of National Parks manages the Commonwealth’s terrestrial and marine reserves and conservation zones and provides national leadership in protected area management.

Great Barrier Reef Marine Park Authority

The Great Barrier Reef Marine Park Authority is a Non-corporate Commonwealth Entity and is a Statutory Agency operating under the Great Barrier Reef Marine Park Act 1975. The Great Barrier Reef Marine Park Authority is responsible for the Outcome:

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

The Great Barrier Reef Marine Park Authority works to protect and conserve the World Heritage values of the Great Barrier Reef.

Sydney Harbour Federation Trust

The Sydney Harbour Federation Trust is a Corporate Commonwealth Entity and operates under the Sydney Harbour Federation Trust Act 2001. The Sydney Harbour Federation Trust is responsible for the Outcome:

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

The Sydney Harbour Federation Trust is responsible for conserving and planning the future uses of former military bases and other Commonwealth land around Sydney Harbour.

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Portfolio overview

For information on resourcing across the Portfolio, please refer to Part 1: Agency Financial Resourcing in Budget Paper No. 4: Agency Resourcing.

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Portfolio overview

Figure 1: Environment and Energy Portfolio structure and outcomes

Clean Energy Finance CorporationActing Chief Executive Officer - Mr Andrew Powell

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

capacity, and disseminating information to industry stakeholders.

Bureau of MeteorologyDirector - Dr Andrew Johnson

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

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

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

pollutants and hazardous substances.Outcome 2: Reduce Australia’s greenhouse gas emissions, adapt to the impacts of climate change,

contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.



Minister for the Environment and Energy The Honourable Josh Frydenberg MP

Clean Energy RegulatorActing Chief Executive Officer - Ms Jody Swirepik

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

additional renewable electricity generation.

Sydney Harbour Federation TrustExecutive Director - Ms Mary Darwell

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

Harbour.

Great Barrier Reef Marine Park AuthorityChairperson - Dr Russell Reichelt

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

Marine Park.

Director of National ParkesDirector - Ms Sally Barnes

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

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

Climate Change Authority Acting Chief Executive Officer - Ms Shayleen Thompson

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

climate change research.

Australian Renewable Energy AgencyChief Executive Officer - Mr Ivor Frischknecht

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

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ENTITY RESOURCES ANDPLANNED PERFORMANCE

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

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

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

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

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

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

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

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

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

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DEPARTMENT OF THE ENVIRONMENT AND ENERGY

ENTITY RESOURCES AND PLANNED PERFORMANCE

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SECTION 1: ENTITY OVERVIEW AND RESOURCES..........................1.1 Strategic direction statement..........................................................................1.2 Entity resource statement..............................................................................1.3 Budget measures...........................................................................................

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE.................2.1 Budgeted expenses and performance for Outcome 1....................................2.2 Budgeted expenses and performance for Outcome 2....................................2.3 Budgeted expenses and performance for Outcome 3....................................2.4 Budgeted expenses and performance for Outcome 4....................................

SECTION 3: BUDGETED FINANCIAL STATEMENTS..........................3.1 Budgeted financial statements.......................................................................3.2 Budgeted financial statements tables............................................................

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Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of the Environment and Energy advises on and implements, environment and energy policy to support the Australian Government achieving a healthy environment, strong economy and thriving community now and into the future.


The Department is delivering policies, programs, information and research that enable the conservation, protection and sustainable management of Australia’s natural environment and heritage places.

The Australian Government has extended the National Landcare Program, investing a further $1.1 billion from the Natural Heritage Trust over seven years from 2016-17. The National Landcare Program is the primary funding mechanism for Australian Government investment in environmental conservation and protection and sustainable land management, and implementation of Australia’s obligations under international conventions. The Department is working with other government agencies on the next phase of the program which will deliver long-term improvements to Australia’s biodiversity and natural resource condition and expand the Indigenous Protected Areas program. The Department does this by supporting communities to address national environmental, agricultural and indigenous priorities that provide economic and social benefits locally and regionally. The next phase of the program includes the additional $100.0 million directed to the National Landcare Program announced as part of the 2016-17 Mid-Year Economic and Fiscal Outlook.

The Department is continuing to implement the Reef 2050 Long-Term Sustainability Plan and progressing actions to protect and manage the Great Barrier Reef while allowing ecologically sustainable development. In 2017-18, the Australian Government will continue to contribute to priority actions across the whole Reef 2050 Plan - ecosystem health, biodiversity, heritage, water quality, community benefits, economic benefits and governance. Further, the Department works with the Clean Energy Finance Corporation to deliver the $1.0 billion Reef Funding Program.

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The Department is leading the implementation of the Government’s Threatened Species Strategy, through pursuing science-based approaches, shaping policy and programs and building partnerships to ensure threatened species are protected. The Threatened Species Strategy sets out a road map to achieve the long-term goal of reversing species decline and supporting species recovery, including through the activities of the Threatened Species Commissioner. Australian Government investment through the National Environmental Science Program and the National Landcare Program, including the 20 Million Trees program, is assisting to deliver the ambitious one, three and five year targets in the strategy.

The Government is investing an additional $5.0 million under the National Landcare Program from 2016-17 to 2018-19 in the Threatened Species Recovery Fund to support community-led threatened species projects aligned with the targets of Australia’s Threatened Species Strategy. The Government has released Australia’s first Threatened Species Prospectus to grow private sector interest and investment in threatened species recovery.

The Department is working with other government agencies to deliver the Government’s $30.0 million Support Your Local Parks and Environment election commitment. This commitment includes the Improving Your Local Parks and Environment Program, which supports communities to revitalise, maintain and improve local parks, nature reserves, rivers, coastal areas and community facilities, ensuring better and more accessible green spaces. The program will provide $22.8 million over four years from 2016-17 to 2019-20. A second part of this commitment is the $1.0 million Surf Life Saving Cleaner Outboard Engines Scheme that provides grants to surf lifesaving clubs to upgrade outboard engines and will reduce air pollution. The remaining funding of $6.2 million is supporting the Solar Communities program which is described in Outcome 2.

The Department will work closely with the Director of National Parks to finalise new management plans and implement management arrangements for Commonwealth Marine Reserves. The Government is providing $56.1 million to the Department and the Director of National Parks over four years from 2016-17 to 2019-20, including funding for fisheries adjustment assistance and marine user engagement. This funding will enable the Director of National Parks to transition to managing a marine protected areas estate six times larger than the current estate.

In partnership with heritage managers, organisations and the community, the Department is implementing the Australian Heritage Strategy. The strategy is a ten year action based framework under which Australia’s natural, historic and Indigenous heritage places are valued, protected for future generations and cared for by the community.

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Department of the Environment and Energy Budget Statements

The Department administers legislation to give effect to our international obligations and implement specific national priorities in relation to environmental protection and environmental health. The Department regulates to protect the environment by supporting and promoting ecologically sustainable development through the effective regulation of matters of national environmental significant Commonwealth areas and activities under the Environment Protection and Biodiversity Conservation Act 1999. The Department supports environmental health through pursuing national approaches to effectively and efficiently manage hazardous wastes, substances and pollutants.

The Department is implementing the Government’s new national emission standards for non-road spark ignition engines and equipment through the introduction of new legislation. The new product emission standards cover a range of petrol powered equipment, including garden engines like leaf blowers and outboard motors. Through the implementation of these standards, Australians will be assured they are getting high quality low-emitting engines and equipment, and air pollution harmful to both human health and the environment will be reduced. This initiative is an important element of the National Clean Air Agreement.

Through the Environment Protection and Biodiversity Conservation Act 1999, the Department is supporting the assessment and listing of threatened species and ecological communities and heritage places, and the protection of internationally traded flora and fauna. The Department will continue to work closely with states and territories to implement the Memorandum of Understanding on a Common Assessment Method for Listing of Threatened Species. The reform will deliver a nationally consistent approach to assessing threatened species, removing ambiguity, and reducing uncertainty for business and community conservation groups.

Australia is committed to the protection of whales and dolphins, continues its work to bring about a permanent end to all forms of commercial whaling and is a strong supporter of the global moratorium on commercial whaling. The Department is focusing on implementation of two Australian-led resolutions agreed at the 2016 International Whaling Commission meeting – on special permit whaling, and governance reform. The Department will continue to subject the design and implementation of Japan’s whaling research to robust scientific scrutiny, and actively support and promote non-lethal research.

The Department is continuing to strengthen the information and research evidence base to underpin environmental policy and decision-making, including through delivery of the National Environmental Science Program and by making the Department’s environmental data open access on data.gov.au.

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Building on the release of the 2016 Australia State of the Environment digital platform, the Department will work with other jurisdictions to develop a national approach to environmental economic accounting in 2017, and with relevant sectors to further improve the evidence base for future reporting on the condition of Australia’s environment and its interaction with economic activity.

The Department will continue the work of the Supervising Scientist to ensure the environment in the Alligator Rivers Region, including Kakadu National park, remains protected from the potential impacts of uranium mining, with a focus on the successful rehabilitation of the Ranger uranium mine.

The Department, through the Commonwealth Environmental Water Holder, manages Commonwealth environmental water holdings acquired by the Government to protect and restore environmental assets in the Murray-Darling Basin, including rivers, lakes, floodplains, wetlands and aquifers. The Department will continue to manage the water holdings and undertake research, monitoring and evaluation activities so as to give effect to the objects of the Water Act 2007, the Basin Plan 2012 and relevant international agreements.

The Department supports the management and protection of Australia's Ramsar wetlands. The Department will conduct assessments on the ecological character of wetlands to meet international obligations under the Ramsar Convention, and provide advice on the significant impacts of developments on Ramsar wetlands under the Environment Protection and Biodiversity Conservation Act 1999.

The Department will continue to support the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development in providing advice to Australian governments on the water-related impacts of coal seam gas and large coal mining development proposals, to strengthen the science underpinning regulatory decisions. In 2017-18 the Department will complete the delivery of targeted bioregional (regional scale) assessments of the impacts of coal seam gas and large coal mining development on water resources and water-dependent assets in selected regions across Queensland, New South Wales, Victoria and South Australia.

In addition, in 2017-18 the Department will commence new combined geological and bioregional resource assessments in three onshore areas that are underexplored but prospective for unconventional gas, and where commercial production to supply the East Coast Energy Market could commence in the medium term, through the Government’s Energy for the Future package. This new work will leverage off the nearly completed

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program of bioregional assessments. The scope for these new bioregional assessments will be extended to shale and tight gas resources.


The Department develops and implements policies and programs that reduce Australia’s greenhouse gas emissions and enable the consideration of climate change in the decisions taken by governments, business and individuals. The Portfolio contributes to the ongoing effort to understand the impacts of climate change so that responses are based on the best available science.

The 2017 review of climate change policies will ensure the Government’s climate change policies remain effective in achieving Australia’s 2030 emissions reduction target and Paris Agreement commitments, while maintaining affordable, reliable and secure energy.

The Emissions Reduction Fund supports practical actions by businesses and communities to achieve real reductions in emissions, lower their energy costs, increase their productivity and deliver valuable co-benefits to the environment, economy and society. The Fund’s Safeguard Mechanism ensures emissions reductions purchased by the Government are not offset by a significant increase in emissions above business as usual elsewhere in the economy. The National Carbon Offset Standard and carbon neutral certification framework enable businesses to undertake voluntary climate action. Growth in renewable and low emissions energy technologies is facilitated through the Renewable Energy Target and support for technology innovation and deployment through the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.

The Department provides information to support governments, business and the community to prepare for and respond to the effects of the changing climate, including through the National Climate Resilience and Adaptation Strategy. The Government is providing new funding of $550,000 in 2017-18 to establish an Adaptation Partnership to bring together Australia’s core national expertise on climate resilience and adaptation research: the National Climate Change Adaptation Research Facility and the CSIRO. The Department provides support for the National Climate Science Advisory Committee. The Committee’s role is to advise the Australian Government on a nationally aligned and integrated approach to climate science.

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Internationally, the Department contributes to an effective global response to climate change through the negotiation and implementation of obligations under the United Nations Framework Convention on Climate Change, its Kyoto Protocol and the Paris Agreement. This includes estimating and reporting Australia’s emissions and progress towards targets. Following ratification of the Paris Agreement on 4 November 2016, the Department, together with the Department of Foreign Affairs and Trade, will work with other countries to establish the Paris Agreement ‘rulebook’ ahead of 2018. The Portfolio, through the Department and the Clean Energy Regulator, is supporting Australia’s contribution to developing the rules for the International Civil Aviation Organisation’s carbon offsetting scheme. The Department provides support to other countries for emission measurement and reporting, and support for international partnerships that promote climate change action through protection of our natural carbon sinks including rainforests and ‘blue carbon’ (mangroves, tidal marshes and seagrasses).

The Department is working with other government agencies to deliver the $6.2 million Solar Communities program which supports community groups and food rescue charities to install rooftop solar photovoltaic, solar hot water and battery systems to reduce their electricity costs and reduce emissions.


The Department leads a whole of government approach to Antarctic and sub-Antarctic policy development and operations, and contributes to advancing Australia’s Antarctic interests within the Antarctic Treaty system. The Department conducts, leads and facilitates research relevant to national policy objectives in high priority areas of Antarctic and Southern Ocean science, particularly in protecting the Antarctic environment and understanding its role in the global climate system. The Department supports Antarctic and sub-Antarctic research by other institutions, including through logistics support.

The Australian Antarctic Strategy and 20 Year Action Plan set out the Government’s national interests in Antarctica and actions to support these interests over the next 20 years. The Australian Government is progressing implementation of key priorities identified under Year Two of the 20 Year Action Plan. This includes the investigation of options to deliver year-round aviation access between Hobart and Antarctica, augmenting science research funding through the establishment of an Antarctic Foundation and the development of over snow traverse capability enabling access to the interior of the Australian Antarctic Territory. This capability will build

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Australia’s scientific leadership in Antarctica, including by involvement in major international scientific research undertaking to retrieve a million-year old ice core.

The Australian Government has confirmed its commitment to continuing year-round access to Macquarie Island, with funding of $49.8 million over 11 years from 2016-17. Macquarie Island is located in the Southern Ocean around 1,500 kilometres southeast of Tasmania. The Island’s location makes it important for Australia’s contribution to a range of international scientific monitoring and Southern Ocean research programs. The Australian Government’s continued operation of a year-round research station will ensure that high priority scientific research and monitoring programs conducted on Macquarie Island continue. This includes continuing meteorological observations at the island which contribute to weather forecasting and international climate science programs.

The Department is procuring a new icebreaker which represents the single biggest investment in the history of Australia’s Antarctic Program. The design of, and preparation for, construction of a new world-class icebreaker to support the Australian Antarctic Program has commenced and will continue during 2017-18. The new icebreaker is expected to be commissioned in 2020-21 and will have its home-port in Hobart.

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The Australian Government is committed to maintaining a competitive and reliable energy system as we transition to a lower emissions future. In 2017-18, the Environment and Energy Portfolio will work with the Industry, Innovation and Science Portfolio to roll out the Government’s new Energy for the Future package. This package will deliver important reforms across Australia’s energy markets to address immediate challenges while laying the foundations for long term reforms to maintain the security and affordability of the energy market. The package includes:

$19.6 million to accelerate reform through the Gas Market Reform Group to improve transparency and access to gas markets.

$30.4 million over four years from 2017-18 for new combined geological and bioregional resource assessments to assess the potential impacts on waterways and aquifers in three onshore areas that are underexplored but prospective for unconventional gas.

$13.4 million over five years to support an Energy Use Data Model to improve forecasting and planning for energy markets – a critical measure to ensure the future energy market is more responsive to the needs of all consumers.

$5.2 million to examine the costs and benefits of constructing pipelines to link Northern and Western Australia gas reserves to the east coast, through Moomba in South Australia.

$0.5 million in 2017-18 to examine the constraints impinging on increased gas supply on the east coast of Australia including regulatory barriers and inconsistent policies.

$2.0 million to allow the Australian Energy Market Operator to improve publication of real time assessment of gas flows and market analysis, to make it easier for the market operator, businesses and investors to make informed decisions about gas market operations.

Through the Council of Australian Governments’ Energy Council, the Department is helping implement various changes including increasing gas market transparency, ensuring better regulation for competitive gas transport prices, improving affordability of electricity by reforming the Limited Merits Review Regime, and improving energy market governance. It will also assist the Government to respond to the Independent Review into

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the reliability and stability of the National Electricity Market (the Finkel Review).

The Department is implementing Australia’s plan to return to compliance with the International Energy Agency’s oil stockholding obligations, including the introduction of mandatory reporting of Australia’s stocks of petroleum and other fuels from 1 January 2018.

The Department will continue to implement the National Energy Productivity Plan which aims to deliver a 40 per cent improvement in Australia’s energy productivity by 2030. The economy-wide work plan aims to improve energy productivity through more productive consumer and business choices, and more productive energy services.

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1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total funding from all sources available to the entity for its operations and to deliver programs and services on behalf of the Government.

The table summarises how resources will be applied by outcome (government strategic policy objectives) and by administered (on behalf of the Government or the public) and departmental (for the entity’s operations) classification.

For more detailed information on special accounts and special appropriations, please refer to Budget Paper No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (that is, appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

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

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Departmental Annual appropriations - ordinary annual services (a)

Prior year appropriations available 73,860 74,679 Departmental appropriation 365,998 396,929 Payments to corporate entities (b, c) 42,829 46,548 s74 retained revenue receipts (d) 38,327 34,348 Departmental capital budget (e) 24,937 24,592

Annual appropriations - other services - non-operating (f) Equity injection 144,782 146,656

Total departmental annual appropriations 690,733 723,752 Special accounts (g)

Opening balance - 8,411 s75 transfer from Industry (h) 14,663 -

Non-appropriation receipts 3,986 - Total special accounts 18,649 8,411 Total departmental resourcing 709,382 732,163

Administered Annual appropriations - ordinary annual services (a)

Outcome 1 426,045 401,078 Outcome 2 5,608 3,678 Outcome 4 6,312 6,452 Payments to corporate entities (c) 1,221 2,073

Annual appropriations - other services - non-operating (f) Payments to corporate entities (c) 619 376

Total administered annual appropriations 439,805 413,657

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

Special accounts (g) Opening balance 5,471,743 6,435,319 Appropriation receipts (i) 2,257,032 2,289,196 Non-appropriation receipts 23,418 39,666

Total special account receipts 7,752,193 8,764,181 less administered appropriations drawn from annual/special

appropriations and credited to special accounts (2,257,032) (2,289,196)less payments to corporate entities from annual/special

appropriations (300,033) (260,374)less special account balances for corporate entities (6,979,000) (7,979,000)Total administered resourcing 845,090 907,193 Total resourcing for the Department of the Environment and Energy 1,554,472 1,639,356

2016-17 2017-18Average staffing level (number) 1,947 1,972

24


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

Third party payments from and on behalf of other entities

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000Payments made to other entities for the provision of services 7,742 6,770 Receipts received from other entities for the provision of services

(disclosed in s74 Retained revenue receipts section above) 483 - Payments made to corporate entities within the Portfolio

Australian Renewable Energy Agency (Appropriation Bill (No. 1) 2017-2018) 1,221 2,073

Australian Renewable Energy Agency (Australian Renewable Energy Agency Act 2011) 298,193 257,925

Clean Energy Finance Corporation (Clean Energy Finance Corporation Act 2012) 1,000,000 550,000

Director of National Parks (Appropriation Bill (No. 1) 2017-2018) 42,829 46,548 Director of National Parks (Appropriation Bill (No. 2) 2017-2018) 619 376

Prepared on a resourcing (i.e. appropriations available) basis.Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2017-18. (b) Following the Environment Protection and Biodiversity Conservation Act 1999 section 514S,

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

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

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

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

(f) Appropriation Bill (No. 2) 2017-18.(g) Excludes 'Special Public Money' held in accounts such as Services for Other Entities and

Trust Moneys accounts (SOETM). For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Section 2: Outcomes and Planned Performance for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

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

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

25


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Department of the Environment and Energy are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Department of the Environment and Energy 2017-18 Budget measures Part 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program 2016-17

$'000 2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000 Revenue measures National Emissions Standards for Non-Road Spark Ignition Engines and Equipment – cost recovery 1.6

Administered revenues - 429 2,658 2,658 2,658 Total - 429 2,658 2,658 2,658 Total revenue measures

Administered - 429 2,658 2,658 2,658 Total - 429 2,658 2,658 2,658 Expense measures National Landcare Programme – continuation (a) 1.1

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

Departmental expenses - 1,734 1,818 1,818 1,818

Total - 1,734 1,818 1,818 1,818 Adaptation Partnership (b) 1.1, 2.2

Administered expenses (550) - - - -Departmental expenses - 550 - - -

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

Departmental expenses - 25,914 9,595 11,673 10,386 Total - 25,914 9,595 11,673 10,386 Energy for the Future – energy use data model for better forecasting (d) 4.1

Administered expenses - - 2,500 2,500 2,500 Departmental expenses - 687 666 666 677

Total - 687 3,166 3,166 3,177 Energy for the Future –solar thermal in Port Augusta (e) 4.1

Administered expenses - - - - - Departmental expenses - - - - -

Total - - - - -

26


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

Program

2016-17$'000

2017-18$'000

2018-19$'000

2019-20$'000

2020-21$'000

Overseas Allowances for Australian Government Employees - efficiencies 4.1

Departmental expenses - - 11 11 11 Total - - 11 11 11 Public Service Modernisation Fund - transformation and innovation stream (f) All

Departmental expenses - - - - - Total - - - - - Total expense measures

Administered (550) - 2,500 2,500 2,500 Departmental - 28,885 12,090 14,168 12,892

Total (550) 28,885 14,590 16,668 15,392 Capital measures National Emissions Standards for Non-Road Spark Ignition Engines and Equipment – cost recovery 1.6

Departmental capital - 1,108 - - - Total - 1,108 - - - Total capital measures

Administered - - - - - Departmental - 1,108 - - -

Total - 1,108 - - - Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed brackets represent a decrease in funds.(a) This measure allocates funding of $1.1 billion in the Natural Heritage Trust from 2016-17 to 2022-23

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

(b) Funding for this measure will be offset from elsewhere in the Portfolio in 2016-17.(c) Funding will commence in 2017-18, although the Department will incur expenses in 2016-17 for this

measure.(d) This measure includes funding of $3.2 million in 2021-22.(e) Funding of $110.0 million has been included in the Contingency Reserve for this measure, to be

accessed if required to secure the delivery of a new solar thermal power generation facility in Port Augusta, South Australia.

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

27


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

NewOutcome 4

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

Description of change: Previously reported in 2016-17 Portfolio Additional Estimates Statements as Outcome 5.

Program changes

Program No.

Program title Description of change

1.1 Sustainable Management of Natural Resources and the Environment

Includes previous Program 1.3 Land Sector Initiatives.

1.2 Environmental Information and Research

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

1.3 Commonwealth Environmental Water

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

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

4.2 Commonwealth Environmental Water

Program moved to Outcome 1 now reported under Program 1.3.

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

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Section 2: Outcomes and planned performance

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.

Note:Performance reporting requirements in the Portfolio Budget Statements are part of the enhanced Commonwealth performance framework established by the Public Governance, Performance and Accountability Act 2013. It is anticipated that the performance criteria described in Portfolio Budget Statements will be read with broader information provided in an entity’s corporate plans and annual performance statements – included in Annual Reports - to provide an entity’s complete performance story.

The most recent corporate plan for the Department of the Environment and Energy can be found at: http://environment.gov.au/about-us/publications/corporate-plan-2016-17.

The most recent annual performance statement can be found at: http://environment.gov.au/annual-report-2015-16/performance-statements.

29

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

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


2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1


Linked programs

Australian Fisheries Management AuthorityPrograms

Program 1.1 – Australian Fisheries Management AuthorityContribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and Australian Fisheries Management Authority engage on sustainable management of Commonwealth fisheries.

Australian Institute of Marine SciencePrograms

Program 1.1 – Marine ResearchContribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Australian Institute of Marine Science work together on implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.

Australian Pesticides and Veterinary Medicines AuthorityPrograms

Program 1.1 – Australian Pesticides and Veterinary Medicines Authority

Contribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Australian Pesticides and Veterinary Medicines Authority work together to ensure regulation of pesticide and veterinary medicines protects Australia’s environment and our environmental health.

30


Australian Taxation OfficePrograms

Program 1.12 – Product Stewardship for Oil programContribution to Outcome 1 made by linked programsThe Department of the Environment and Energy works with the Australian Taxation Office, which administers financial aspects of the Product Stewardship for Oil program, pays the benefits on recycled motor oil and collects the levy on new oil entering the market from domestic sources.

Bureau of MeteorologyPrograms

Program 1.1 – Bureau of MeteorologyContribution to Outcome 1 made by linked programsThe Bureau of Meteorology is a partner in the Earth Systems and Climate Change Hub in the National Environmental Science Program.The Bureau of Meteorology is a collaborator in the delivery of the Bioregional Assessment program, managing and leading the technical component. The Bureau of Meteorology provides experience in building and maintaining environmental information systems, and sourcing and storing environmental information such as data, models and reports.In addition, the Bureau of Meteorology’s water information services inform Commonwealth environmental water planning and decision making in relation to water resource availability and environmental water requirements.

Clean Energy Finance Corporation Programs

Program 1.1 – Clean Energy Finance Corporation Contribution to Outcome 1 made by linked programsThe Department of the Environment and Energy has responsibility for policies that reduce Australia’s greenhouse gas emissions. The Clean Energy Finance Corporation contributes to these programs by facilitating increased flows of finance into the clean energy sector, including through the funding it makes available to the Clean Energy Innovation Fund and Reef Funding Program.

31


Commonwealth Scientific and Industrial Research OrganisationPrograms

Program 1.1 – Research – Science, Services and Innovation FundContribution to Outcome 1 made by linked programsThe Commonwealth Scientific and Industrial Research Organisation contributes to Outcome 1 through the delivery of research to support the implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.The Commonwealth Scientific and Industrial Research Organisation is a lead organisation in the Earth Systems and Climate Change Hub in the National Environmental Science Program.The Commonwealth Scientific and Industrial Research Organisation is also a collaborator in the delivery of the bioregional assessments, contributing expertise in ecology, hydrology, hydrogeology, informatics and risk analysis.

Department of Agriculture and Water ResourcesPrograms

Program 1.1 – Agricultural Adaptation Program 1.2 – Sustainable Management - Natural Resources Program 1.4 – Fishing Industry Program 2.1 – Biosecurity and Export Services Program 2.2 – Plant and Animal Health Program 3.1 – Water Reform

Contribution to Outcome 1 made by linked programsThe Departments of the Environment and Energy and Agriculture and Water Resources work together under a memorandum of understanding to deliver the National Landcare program and work collaboratively to implement the Murray-Darling Basin Plan and the Commonwealth’s water reform policy agenda.The Departments of the Environment and Energy and Agriculture and Water Resources engage on biosecurity, wildlife trade and fisheries policy.The Departments of the Environment and Energy, Agriculture and Water Resources, and Industry, Innovation and Science work collaboratively in the planning phase of the National Carp Control Plan.

32


Department of Foreign Affairs and TradePrograms

Program 1.1 – Foreign Affairs and Trade Operations Program 1.2 – Official Development Assistance

Contribution to Outcome 1 made by linked programsThe Department of Foreign Affairs and Trade provides support to the Department of the Environment and Energy on matters relating to the implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.The Department of the Environment and Energy receives funding from the Department of Foreign Affairs and Trade for a number of engagement activities in the Pacific and South-East Asia.

Department of HealthPrograms

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

Contribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Department of Health work together to manage policy and regulatory issues that have combined human and environmental health implications.

Department of Human ServicesPrograms

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

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

Department of Immigration and Border ProtectionPrograms

Program 1.1 – Border Enforcement Program 1.2 – Border Management

Contribution to Outcome 1 made by linked programsThe Departments of the Environment and Energy and Immigration and Border Protection work together to prevent illegal wildlife trade and control transboundary movements of hazardous wastes and their

33


Department of Immigration and Border Protectiondisposal.

Department of the Prime Minister and CabinetPrograms

Program 1.1 – Prime Minister and Cabinet Program 1.1 – Indigenous Advancement - Jobs, Land and Economy

ProgramContribution to Outcome 1 made by linked programsThe Departments of the Environment and Energy, the Prime Minister and Cabinet, and Agriculture and Water Resources work together to provide opportunities for indigenous communities and land managers to engage with the National Landcare Program. The Departments of the Environment and Energy and the Prime Minister and Cabinet work cooperatively on the Indigenous Protected Areas program and elements of the Indigenous Rangers program through the National Landcare Program.The Department of the Environment and Energy is supporting the Government's Cities agenda, through the delivery of the National Landcare Program, including the 20 Million Trees program, the use of strategic assessments under the Environment Protection and Biodiversity Conservation Act 1999 and national approaches to managing wastes and hazardous substances and air quality in cities.

Department of the TreasuryPrograms

Program 1.9 – National Partnership Payments to the States Contribution to Outcome 1 made by linked programsThe Department of the Treasury contributes to Outcome 1 by making payments on behalf of the Department of the Environment and Energy. A number of payments are made to States and territories for heritage management and species conservation.

Director of National ParksPrograms

Program 1.1 – Parks and ReservesContribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Director of National Parks work together through engagement on policy direction, science, heritage management and species conservation within Commonwealth managed marine and terrestrial reserves.

34


Great Barrier Reef Marine Park AuthorityPrograms

Program 1.1 – Improving the outlook for the Great Barrier ReefContribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Great Barrier Reef Marine Park Authority work together on heritage management, environment health, species conservation and fisheries management as well as joint implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef.

Murray-Darling Basin AuthorityPrograms

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

Contribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Murray Darling Basin Authority work together on implementation of the Basin Plan, operation of the River Murray System, shared natural resource management programs, research, information, advice and Basin Plan reporting obligations, all of which contribute to the management of Commonwealth environmental water.

National Offshore Petroleum Safety and Environmental Management AuthorityPrograms

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

Contribution to Outcome 1 made by linked programsThe National Offshore Petroleum Safety and Environmental Management Authority contributes to the work of the Department of the Environment and Energy through its policies and program relating to the effective management and administration of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and environment associated regulations.

Sydney Harbour Federation TrustPrograms

Program 1.1 – Sydney Harbour Federation TrustContribution to Outcome 1 made by linked programs

35


Sydney Harbour Federation TrustThe Department of the Environment and Energy and the Sydney Harbour Federation Trust work together through engagement on policy direction and site management to preserve the natural and cultural heritage of Sydney Harbour Federation Trust land and maximise public access.

Budgeted expenses for Outcome 1This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.

Table 2.1.1: Budgeted expenses for Outcome 1

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000

2018-19 Forward estimate

$'000


$'000

2020-21Forward estimate

$'000Program 1.1: Sustainable Management of Natural Resources and the EnvironmentAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)

National Landcare Program: Natural Heritage Trust 229,163 256,847 223,244 227,026 196,708

Less special account (229,163)(256,847

)(223,244

)(227,026

)(196,708

)Environmental Stewardship

Program 9,945 9,918 9,980 9,713 9,179 Green Army 74,014 21,283 - - - Reef 2050 Plan 34,124 39,419 39,461 40,000 15,000

Less special account (34,038) (39,333) (39,375) (40,000) (15,000)Great Barrier Reef Foundation - contribution 3,125 - - - - Commonwealth Marine Reserves - 10,575 10,262 7,496 - Improving your Local Parks and

Environment 1,140 6,265 5,436 2,073 - Biodiversity Fund 42,423 1,997 - - -

Special accounts Natural Heritage Trust of Australia

Account 227,163 258,584 224,744 227,526 196,708 Reef Trust Special Account 41,534 41,621 42,983 43,242 16,947

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

Departmental appropriation (a, b) 29,079 25,477 18,631 18,780 18,550 Payments to corporate entities (c) 42,829 46,548 47,397 45,802 44,129 Expenses not requiring appropriation

in the Budget year (d) 7,737 8,610 11,345 11,002 10,171 Departmental total 79,645 80,635 77,373 75,584 72,850

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

36


Table 2.1.1: Budgeted expenses for Outcome 1 (continued)


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Program 1.2: Environmental Information and ResearchAdministered expenses


National Environmental Science Program 25,520 25,520 25,520 25,520 25,520

Australian Biological Resources Study 2,030 2,030 2,030 2,030 2,030

Independent Expert Scientific Committee on Coal Seam Gas

and Large Coal Mining 1,035 1,035 1,035 1,035 1,035 Administered total 28,585 28,585 28,585 28,585 28,585

Departmental expenses Departmental appropriation (a, b) 18,807 32,681 27,645 28,873 27,733 Expenses not requiring appropriation

in the Budget year (d) 37 39 39 39 39 Departmental total 18,844 32,720 27,684 28,912 27,772

Total expenses for Program 1.2 47,429 61,305 56,269 57,497 56,357 Program 1.3: Commonwealth Environmental WaterAdministered expenses


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

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

and Research 1,900 1,900 1,900 1,900 2,500 Water Resources Assessment and

Research Grant 175 - - - - Special accounts

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


Departmental appropriation (a, b) 17,475 17,686 17,570 17,793 17,848 Expenses not requiring appropriation



37




2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Program 1.4: Conservation of Australia's Heritage and EnvironmentAdministered expenses


Protecting National Historic Sites (e) 4,420 4,420 4,420 4,420 4,420 National Trusts Partnership Program 927 927 927 927 927 Community Heritage and Icons

Grants Program 467 - - - - Giant Pandas 1,402 1,308 1,308 - -



in the Budget year (d) 4,997 2,248 494 68 68 Departmental total 35,388 31,133 30,278 29,952 29,532

Total expenses for Program 1.4 42,604 37,788 36,933 35,299 34,879 Program 1.5: Environmental RegulationAdministered expenses


Environment Protection and Biodiversity Conservation Act -

Water Resources Amendment 259 259 259 259 259 Administered total 259 259 259 259 259




38




2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Program 1.6: Management of Hazardous Wastes, Substances and PollutantsAdministered expenses


National Environment Protection Council 518 502 429 429 429 Less special account (518) (502) (429) (429) (429)

Biofuels - Monitoring, Compliance and Enforcement of Fuel Quality 100 100 100 100 100

Surf Life Saving Cleaner Outboard Engines Scheme 45 205 375 375 -

Special accounts Ozone Protection & Synthetic Greenhouse

Gas Account 13,586 13,763 13,969 14,193 14,405 National Environment Protection

Council Special Account 1,984 1,865 680 680 680 Administered total 15,715 15,933 15,124 15,348 15,185



Total expenses for Program 1.6 61,776 62,755 61,633 62,450 62,075 Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 169,013 87,828 63,638 55,848 45,970 Special accounts 316,874 360,394 320,421 329,363 271,882


Departmental appropriation (a, b) 193,184 200,595 188,668 192,471 192,294 Payments to corporate entities (c) 42,829 46,548 47,397 45,802 44,129 Expenses not requiring appropriation

in the Budget year (d) 14,295 12,232 13,380 12,480 11,597 Departmental total 250,308 259,375 249,445 250,753 248,020

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

39



Movement of administered funds between years (f)

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Outcome 1:

Environmental Water Holdings

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

Natural Heritage Trust of Australia

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

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

2016-17 2017-18

Average staffing level (number) 1,091 1,090

(a) Outcome 1 also has a departmental capital budget of $11.128 million in 2017-18.(b) Includes retained revenue receipts under section 74 of the Public Governance, Performance and

Accountability (PGPA) Act 2013.

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

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

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

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

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

40


Table 2.1.2: Performance criteria for Outcome 1Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It summarises how each program is delivered and where 2017-18 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Conserve, protect and sustainably manage Australia’s biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.Program 1.1 – Sustainable Management of Natural Resources and the EnvironmentThe objective of this program is to improve the extent, condition and connectivity of Australia’s unique biodiversity and natural resources, including the Great Barrier Reef, through protection of habitats and mitigation of threats to threatened species and ecological communities.

Delivery Program 1.1 will be delivered by: Delivering biodiversity conservation and natural resource management

programs, including the Reef Trust, 20 Million Trees, the National Landcare Program and Improving Your Local Parks and Environment Program

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

Implementing the Threatened Species Strategy and the Threatened Species Recovery Fund

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

Performance information

Year Performance criteria Targets

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

On track

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

On track

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

On track

41


Outcome 1 – Conserve, protect and sustainably manage Australia’s biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.Program 1.1 – Sustainable Management of Natural Resources and the EnvironmentThe objective of this program is to improve the extent, condition and connectivity of Australia’s unique biodiversity and natural resources, including the Great Barrier Reef, through protection of habitats and mitigation of threats to threatened species and ecological communities.

Program 1.1 – Sustainable Management of Natural Resources and the EnvironmentThe objective of this program is to improve the extent, condition and connectivity of Australia’s unique biodiversity and natural resources, including the Great Barrier Reef, through protection of habitats and mitigation of threats to threatened species and ecological communities.


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

On track

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

On track

Threatened Species Strategy targets are met.

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

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

On track

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

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

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

On track

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

42


extent.On track


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

5 Moved from 2016–17 to reflect June 2018 timeframe

43


Program 1.1 – Sustainable Management of Natural Resources and the EnvironmentThe objective of this program is to improve the extent, condition and connectivity of Australia’s unique biodiversity and natural resources, including the Great Barrier Reef, through protection of habitats and mitigation of threats to threatened species and ecological communities.

Year Performance criteria (a) Targets (a)

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

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

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

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

Threatened Species Strategy targets are met.

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

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

Green Army program objectives delivered.

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

2018–19 and beyond

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

As for 2017–18 with the exception of concluding programs

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

Material changes to Program 1.1 resulting from the following measures:

Measure title – National Landcare Programme – continuation

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

44


Program 1.2 - Environmental Information and ResearchThe objective of this program is to improve understanding of Australia’s environment and inform environmental decision-making through collaborative research and enhanced discovery, access and use of environmental information; improve the knowledge of, and inform decision-making on, the water-related impacts of coal seam gas and coal mining development.

Delivery Program 1.2 will be delivered by: Providing information to assist decision-makers to understand, manage

and conserve Australia’s environment, including under the Environment Protection and Biodiversity Conservation Act 1999

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

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

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

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



2016–17 Data and information generated by the Department are used by stakeholders and/or supports evidence based decision-making.

On Track

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

On track

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

On track

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

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

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

Achieved

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

Achieved


45


Program 1.2 - Environmental Information and ResearchThe objective of this program is to improve understanding of Australia’s environment and inform environmental decision-making through collaborative research and enhanced discovery, access and use of environmental information; improve the knowledge of, and inform decision-making on, the water-related impacts of coal seam gas and coal mining development.

Year Performance criteria (a) Targets (a)

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

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

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

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

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

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

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

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

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

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


Measure title – Energy for the Future – gas supply and affordability(a) New or modified performance criteria and/or targets that reflect new or materially changed programs are

shown in italics.

46


Program 1.3 – Commonwealth Environmental WaterThe objective of the program is to: protect and restore water-dependent ecosystems in the Murray–Darling Basin through the management and use of Commonwealth environmental water and manage Australia’s obligations under the Ramsar Convention; and improve the knowledge of, and inform decision-making on, the impacts to and management of water-dependent ecosystems consistent with international and national obligations.

Delivery Program 1.3 will be delivered by: Planning for the use, carryover and trade of Commonwealth environmental

water (integrated portfolio management plans) Managing, delivering, monitoring and reporting on Commonwealth

environmental water Engaging Murray–Darling Basin communities, Indigenous groups, irrigation

industries and others to incorporate local experience and knowledge in the management of Commonwealth environmental water

Contributing to the development of the National Carp Control Plan Undertaking research, conducting assessments, compiling information and

providing advice to improve the management of water-dependent ecosystems, including Ramsar wetlands

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




On track

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

On track

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

On track

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

On track

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

On track

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

On track

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

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

47


Program 1.3 – Commonwealth Environmental WaterThe objective of the program is to: protect and restore water-dependent ecosystems in the Murray–Darling Basin through the management and use of Commonwealth environmental water and manage Australia’s obligations under the Ramsar Convention; and improve the knowledge of, and inform decision-making on, the impacts to and management of water-dependent ecosystems consistent with international and national obligations.


Australia meets its obligations under international environmental agreements.

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

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


As for 2017–18 As for 2017–18


Program 1.4 – Conservation of Australia’s Heritage and EnvironmentThe objective of this program is to: (a) identify and protect world and nationally significant natural, Indigenous and historic heritage places; (b) identify, protect and conserve Australia’s threatened species, ecological communities, cetaceans and migratory species; and (c) protect internationally traded flora and fauna consistent with national and international obligations.

Delivery Program 1.4 will be delivered by: Administering regulation and providing advice on the delivery of funding

programs to support the identification and protection of threatened species and ecological communities and significant natural, Indigenous and historic heritage places

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

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



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

On track

All activities required by legislation are conducted within statutory timeframes.

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

48


Program 1.4 – Conservation of Australia’s Heritage and EnvironmentThe objective of this program is to: (a) identify and protect world and nationally significant natural, Indigenous and historic heritage places; (b) identify, protect and conserve Australia’s threatened species, ecological communities, cetaceans and migratory species; and (c) protect internationally traded flora and fauna consistent with national and international obligations.


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

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

On track

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

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


On track

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

On track

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

Activities required by legislation are conducted within statutory timeframes.



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


As for 2017–18 As for 2017–18


49


Program 1.5 – Environmental RegulationThe objective of this program is to support sustainable development outcomes by delivering efficient and effective regulation of matters of national environmental significance.

Delivery Program 1.5 will be delivered by: Undertaking individual and strategic environmental assessments and

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

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

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

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



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

On track


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

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

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

6 Location data available is only for those offsets that have been secured, noting there is often a lag once an offset has been approved as a condition to the actual securing of the offset. This dataset will mature over time and is indicative only.7 Project footprint.

50




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

On track

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

On track


On track

Improved compliance with national environmental legislation.

Achieved

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

On track

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

Achieved

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

Achieved

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


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

8 Location data available is only for those offsets that have been secured, noting there is often a lag once an offset has been approved as a condition to the actual securing of the offset. This dataset will mature over time and is indicative only.9 Project footprint.

51




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

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



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

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

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


As for 2017–18 As for 2017–18

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

52


Program 1.6 – Management of Hazardous Wastes, Substances and PollutantsThe objective of this program is to protect the environment through national approaches to effectively and efficiently manage hazardous wastes, substances and pollutants.

Delivery Program 1.6 will be delivered by: Discharge of legislative and regulatory functions and effective and efficient

delivery of government policies, programs and priorities in relation to environmental health

Significant progress on implementing government reforms in relation to environmental health

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


Year Performance criteria (a) Targets


On track


Achieved


On track


On track






As for 2017–18 As for 2017–18



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

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

53




Linked programs

Attorney-General’s Department Programs

Program 1.2 – National Security and Criminal JusticeContribution to Outcome 2 made by linked programsThe Attorney-General's Department provides joint secretariat support with the Department of the Environment and Energy for the Australian Government Disaster and Climate Resilience Reference Group. The Group is a senior forum to progress policy on disaster and climate resilience.

Australian Renewable Energy AgencyPrograms

Program 1.1 – Australian Renewable Energy AgencyContribution to Outcome 2 made by linked programsThe Department of the Environment and Energy has responsibility for developing and implementing policies that reduce Australia's greenhouse gas emissions. The Australian Renewable Energy Agency contributes to implementing these policies by providing financial assistance for the research, development, demonstration, deployment and commercialisation of clean energy technologies. This provides options to meet future emission reduction targets at lower cost.

Australian Taxation OfficePrograms

Program 1.1 – Australian Taxation OfficeContribution to Outcome 2 made by linked programsThe Department of the Environment and Energy shares information on Emissions Reduction Fund tree planting projects with the Australian Taxation Office which administers the Carbon Sink Forest Tax measure, a tax deduction available to these projects.

54



Program 1.1 – Bureau of MeteorologyContribution to Outcome 2 made by linked programsThe Bureau of Meteorology works collaboratively with the Department of the Environment and Energy to provide weather/climate information and to engage with other climate science providers to identify priority investment areas and research needs.

Clean Energy Finance CorporationPrograms

Program 1.1 – Clean Energy Finance CorporationContribution to Outcome 2 made by linked programsThe Department of the Environment and Energy has responsibility for policies that reduce Australia’s greenhouse gas emissions. The Clean Energy Finance Corporation contributes to these programs by facilitating increased flows of finance into the clean energy sector.

Clean Energy RegulatorPrograms

Program 1.1 – Clean Energy RegulatorContribution to Outcome 2 made by linked programsThe Department of the Environment and Energy has policy responsibility for the Emissions Reduction Fund and the Renewable Energy Target. The Clean Energy Regulator works collaboratively with the Department as the delivery agency and regulator for these schemes.

Climate Change AuthorityPrograms

Program 1.1 – Reviewing climate change mitigation policiesContribution to Outcome 2 made by linked programsThe Climate Change Authority supports the Department of the Environment and Energy in reducing Australia's greenhouse gas emissions by providing independent climate change mitigation policy advice to the Government.

55



Program 1.1 – Research – Science, Services and Innovation FundContribution to Outcome 2 made by linked programsThe Department of the Environment and Energy is collaborating with the Commonwealth Scientific and Industrial Research Organisation on climate science research needs through the Climate Science Centre.

Department of Foreign Affairs and Trade Programs

Program 1.1 – Foreign Affairs and Trade Operations Contribution to Outcome 2 made by linked programsThe Department of Foreign Affairs and Trade leads for the Government on international climate change negotiations under the United Nations Framework Convention on Climate Change (UNFCCC). The Department of the Environment and Energy works with DFAT in formulating advice to Government on these matters and representing Australia at UNFCCC meetings.

The Department of the Environment and Energy also delivers a number of Australian Government funded projects that support climate change capacity development projects in developing countries.

Department of Industry, Innovation and SciencePrograms

Program 3 – Program SupportContribution to Outcome 2 made by linked programsThe Department of the Environment and Energy provides joint secretariat support for the National Climate Science Advisory Committee. The Committee advises the Australian Government on a nationally integrated approach to climate change impacts and inform the direction and sustainability of Australia's climate science capacity and research priorities.

56


Department of Infrastructure and Regional DevelopmentPrograms

Program 2.2 – Infrastructure and Regional Development Contribution to Outcome 2 made by linked programsThe Department of Infrastructure and Regional Development is consulting on a proposal to implement fuel efficiency standards for light vehicles. Fuel efficiency standards would contribute to reducing Australia’s greenhouse gas emissions by reducing emissions from light vehicles.

Department of the Prime Minister and CabinetPrograms

Program 1.1 – Prime Minister and CabinetContribution to Outcome 2 made by linked programsThe Department of the Environment and Energy supports the Government's agenda to improve results for Indigenous Australians by offering opportunities to work on country and generate income through projects that reduce Australia's greenhouse gas emissions under the Emissions Reduction Fund.


Programs Program 1.1 – Improving the outlook for the Great Barrier Reef

Contribution to Outcome 2 made by linked programsClimate Change is the most significant threat to the Great Barrier Reef. The Department of the Environment and Energy is responsible for policy to support an effective global response to climate change and for adapting to climate change.

57


Budgeted expenses for Outcome 2

This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.

Table 2.2.1: Budgeted expenses for Outcome 2Outcome 2: Reduce Australia's greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Program 2.1: Reducing Australia's Greenhouse Gas EmissionsAdministered expenses


Extending the benefits of the Carbon Farming initiative 428 - - - -

Solar Towns 321 - - - - Independent Scientific Committee

on Wind Turbines 29 29 15 - - Solar Programs 2,100 3,649 423 - -

Administered total 2,878 3,678 438 - - Departmental expenses


in the Budget year (c) 6,761 5,433 1,392 84 84 Departmental total 48,978 46,937 41,331 39,695 40,888

Total expenses for Program 2.1 51,856 50,615 41,769 39,695 40,888 Program 2.2: Adapting to Climate ChangeAdministered expenses


National Climate Change Adaptation Research Facility 2,730 - - - -

Administered total 2,730 - - - - Departmental expenses


in the Budget year (c) 5 5 5 5 5 Departmental total 2,444 2,854 2,261 2,262 2,320


58


Table 2.2.1: Budgeted expenses for Outcome 2 (continued)Outcome 2: Reduce Australia's greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Program 2.3: Renewable Energy Technology DevelopmentAdministered expenses

Special appropriations Australian Renewable Energy

Agency Act 2011 189,037 257,925 235,296 254,704 134,035 Less payments to corporate

entities (d) (189,037)(257,925

)(235,296

)(254,704

)(134,035

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


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


Ordinary annual services (Appropriation Bill No. 1) 5,608 3,678 438 - - Payments to corporate entities (d) 299,414 259,998 237,759 257,572 137,041



in the Budget year (c) 6,766 5,438 1,397 89 89 Departmental total 58,601 56,431 49,568 45,969 47,226


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Movement of administered funds between years (e)

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Outcome 2:

Solar Towns (f) 321 - - - - Total movement of administered funds 321 - - - -

2016-17 2017-18

Average staffing level (number) 288 284

(a) Outcome 2 also has a departmental capital budget of $0.450 million in 2017-18.(b) Includes retained revenue receipts under section 74 of the Public Governance, Performance and

Accountability (PGPA) Act 2013.(c) Expenses not requiring appropriation comprise depreciation expenses, amortisation expenses,

audit fees and an approved operating loss.

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

(e) Figures displayed in brackets represent a decrease in funds.(f) This movement was from 2015-16.


60


Table 2.2.2: Performance criteria for Outcome 2Table 2.2.2 below details the performance criteria for each program associated with Outcome 2. It summarises how each program is delivered and where 2017–18 Budget measures have created new programs or materially changed existing programs.

Outcome 2 – Reduce Australia’s greenhouse gas emissions, adapt to the impacts of climate change, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change.Program 2.1 – Reducing Australia’s Greenhouse Gas Emissions The objective of this program is to shape the global response to climate change and achieve Australia’s greenhouse gas emissions reduction targets through effective emissions reduction mechanisms, including the Emissions Reduction Fund, Carbon Neutral Program and the Renewable Energy Target.

Delivery Program 2.1 will be delivered by: Implementing the Emissions Reduction Fund components (crediting,

purchasing and safeguard) and the Carbon Neutral Program Encouraging the uptake of additional renewable energy and energy

innovation through the Renewable Energy Target, the Solar Communities program and collaborating with the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.



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

On track

Australia meets its 2020 emissions reduction target.

On track

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

On track

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

On track

61


Program 2.1 – Reducing Australia’s Greenhouse Gas Emissions The objective of this program is to shape the global response to climate change and achieve Australia’s greenhouse gas emissions reduction targets through effective emissions reduction mechanisms, including the Emissions Reduction Fund, Carbon Neutral Program and the Renewable Energy Target.


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

Australia meets its 2020 emissions reduction target.

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

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


As for 2017–18 As for 2017–18

Purposes Develop and implement a national response to climate change.

62


Program 2.2 – Adapting to Climate ChangeThe objective of this program is to provide the guidance, information and national coordination needed to ensure that Australian Government operations and activities are resilient to climate change impacts, and that businesses and communities are better placed to manage their own risks.

Delivery Program 2.2 will be delivered by: Working with Australian Government agencies to improve understanding and

consideration of climate risk to Government operations, program, and policies

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



2016–17 Data and information generated or commissioned by the Department are used by stakeholders and/or support evidence based decision-making.

On track

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

On track

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

On track

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

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

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


As for 2017–18 As for 2017–18



Measure title – Adaptation Partnership(a) New or modified performance criteria that reflect new or materially changed programs are shown in

italics.

63


Program 2.3 – Renewable Energy Technology Development The objective of this program is to support the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.

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



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

On track

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


As for 2017–18 As for 2017–18


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Linked programs


Program 1.1 – Bureau of MeteorologyContribution to Outcome 3 made by linked programsThe Bureau of Meteorology provides meteorological and related services in support of the Australian Antarctic program under a Memorandum of Understanding.


Program 1.1 – Research – Science, Services and Innovation FundContribution to Outcome 3 made by linked programsThe Commonwealth Scientific and Industrial Research Organisation undertakes scientific research and monitoring in the Southern Ocean and at Australia’s Antarctic Stations, as part of the Australian Antarctic program.

Department of DefencePrograms

Program 2.3 – Chief Finance OfficerContribution to Outcome 3 made by linked programsThe Department of Defence provides a range of logistics support services and advice to the Australian Antarctic program, including hydrographic mapping services and heavy lift capability to supplement existing flights in the delivery of cargo and contributing to emergency responses in the region.

65



Program 1.1 – Foreign Affairs and Trade OperationsContribution to Outcome 3 made by linked programsThe Department of Foreign Affairs and Trade, in cooperation with the Department of the Environment and Energy, leads a whole of government approach to Antarctic policy development and international relations, including through the Antarctic Treaty System.

66





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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Program 3.1: Antarctica: Science, Policy and PresenceAdministered expenses

Expenses not requiring appropriation in the Budget year (a) 12 12 12 12 12

Administered total 12 12 12 12 12 Departmental expenses

Departmental appropriation (b, c) 125,475 120,932 109,811 121,731 133,162 Expenses not requiring appropriation

in the Budget year (a) 53,972 56,028 55,073 50,945 78,566 Departmental total 179,447 176,960 164,884 172,676 211,728


Expenses not requiring appropriation in

the Budget year (a) 12 12 12 12 12 Administered total 12 12 12 12 12

Departmental expenses Departmental appropriation (b, c) 125,475 120,932 109,811 121,731 133,162 Expenses not requiring appropriation

in the Budget year (a) 53,972 56,028 55,073 50,945 78,566 Departmental total 179,447 176,960 164,884 172,676 211,728


2016-17 2017-18Average staffing level (number) 383 378

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

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

Accountability (PGPA) Act 2013.


67



Outcome 3 – Advance Australia’s strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.Program 3.1 – Antarctica: Science, Policy and PresenceThe objective of this program is to conduct scientific research in Antarctica and the Southern Ocean that supports Australian Government policy and environmental management priorities.

Delivery Program 3.1 will be delivered by: Implementing the Australian Antarctic Strategy and 20 Year Action Plan Delivering the 2017–18 Australian Antarctic program including high priority

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

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



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

On track

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

On track

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

On track

Australian Antarctic program complies with relevant environmental legislation.

On track

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

On track

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

On track

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Outcome 3 – Advance Australia’s strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.Program 3.1 – Antarctica: Science, Policy and PresenceThe objective of this program is to conduct scientific research in Antarctica and the Southern Ocean that supports Australian Government policy and environmental management priorities.

69


Program 3.1 – Antarctica: Science, Policy and PresenceThe objective of this program is to conduct scientific research in Antarctica and the Southern Ocean that supports Australian Government policy and environmental management priorities.


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

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

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

Australian Antarctic program complies with relevant environmental legislation.

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

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


As for 2017–18 As for 2017–18

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

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Linked programs

Attorney-General's Department Programs

Program 1.7 – National Security and Criminal JusticeContribution to Outcome 4 made by linked programsThe Attorney-General's Department provides policy advice and support to the Department of the Environment and Energy in relation to the Critical Infrastructure Resilience Strategy and its application for critical energy infrastructure assets. The Attorney-General's Department also provides funding to the Department of the Environment and Energy for secretariat services to support the Energy Sector Group under the Trusted Information Sharing Network.

Australian Competition and Consumer CommissionPrograms

Program 1.2 – Australian Energy RegulatorContribution to Outcome 4 made by linked programsThe Department of the Environment and Energy works with the Australian Energy Regulator by promoting efficient investment in, and efficient operation and use of, energy services for the long term interests of end users of energy with respect to price, quality, safety, reliability and security. The Department facilitates the work streams of the COAG Energy Council in developing electricity and gas rules which the Australian Energy Regulator is responsible for enforcing.

Australian Renewable Energy Agency Programs

Program 1.1 – Australian Renewable Energy Agency Contribution to Outcome 4 made by linked programsThe Australian Renewable Energy Agency’s financial assistance for clean energy technologies includes support for projects and research on energy market security and reliability matters, such as the integration of variable renewable energy into the electricity system and the role of energy storage technologies. The Department of the Environment and Energy works with the Australian Renewable Energy Agency in formulating advice

71


Australian Renewable Energy Agency to the Government on these matters. Clean Energy Finance CorporationPrograms

Program 1.1 – Clean Energy Finance CorporationContribution to Outcome 4 made by linked programsThe Clean Energy Finance Corporation contributes to the reliable, sustainable and secure operations of energy markets by facilitating increased flows of finance into the clean energy sector, including finance for energy efficiency projects. The Department of the Environment and Energy works with the Clean Energy Finance Corporation in formulating advice to the Government on these matters.

Clean Energy Regulator Programs

Program 1.1 – Clean Energy RegulatorContribution to Outcome 4 made by linked programsThe Department of the Environment and Energy has policy responsibility for the Emissions Reduction Fund and the Renewable Energy Target. The Clean Energy Regulator works collaboratively with the Department as the delivery agency and regulator for these schemes. The Department is responsible for energy policy and the Clean Energy Regulator works collaboratively with the Department to understand the impacts of its regulatory activity on the market.

Climate Change Authority Programs

Program 1.1 – Reviewing Climate Change Mitigation PoliciesContribution to Outcome 4 made by linked programsThe Climate Change Authority supports the Department of the Environment and Energy in reducing Australia’s greenhouse gas emissions by providing independent climate change mitigation policy advice to the Government, including in relation to the energy sector.


Program 1.1 – Foreign Affairs and Trade OperationsContribution to Outcome 4 made by linked programsThe Department of Foreign Affairs and Trade provides diplomatic support to the Department of the Environment and Energy on matters relating to

72


Department of Foreign Affairs and Tradecompliance with the International Energy Agency treaty.

Department of Industry, Innovation and SciencePrograms

Program 2 – Growing Business Investment and Improving Business Capability

Contribution to Outcome 4 made by linked programsThe Department of Industry, Innovation and Science contributes to the reliable, sustainable and secure operations of domestic energy markets by working with the Department of the Environment and Energy to deliver more sustainable and competitive gas markets, and more gas supply, through the Domestic Gas Strategy, advancing low emissions fossil fuels technology, including carbon capture and storage, having joint authorship of key government reports on energy and resources data and administering oil and gas operations in Commonwealth waters. The Departments work collaboratively on international engagement with Australia’s key energy resource markets.

National Offshore Petroleum Safety and Environmental Management AuthorityPrograms

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

Contribution to Outcome 4 made by linked programsThe National Offshore Petroleum Safety and Environmental Management Authority contributes to the work of the Department of the Environment and Energy through its policies and program relating to the effective management and administration of Australia’s offshore energy resources through the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

73




Table 2.4.1: Budgeted expenses for Outcome 4Outcome 4: Support the reliable, sustainable and secure operations of energy markets through improving Australia's energy efficiency, performance and productivity for the community.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Program 4.1: Energy (a)

Administered expenses

Ordinary annual services

(Appropriation Bill No. 1)

Energy Efficiency Programs 590 620 620 620 620

GEMS National Legislative Framework 5,722 5,832 5,832 5,832 5,832

International Energy Agency Compliance - Collective Action Response - - 7,192 7,318 -

Energy Use Data Model for Better

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

Administered total 6,312 6,452 16,144 16,270 8,952

Departmental expenses

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

Special account

Energy Special Account 2015 10,238 - - - -

Expenses not requiring appropriation

in the Budget year (c) 66 94 94 94 94

Departmental total 45,667 57,318 47,257 47,552 45,537

74



Outcome 4 Totals by appropriation type

Administered expenses

Ordinary annual services

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

Administered total 6,312 6,452 16,144 16,270 8,952

Departmental expenses

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

Special account 10,238 - - - -

Expenses not requiring appropriation

in the Budget year (c) 66 94 94 94 94

Departmental total 45,667 57,318 47,257 47,552 45,537


2016-17 2017-18

Average staffing level (number)185 220

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

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

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


75


Outcome 4 – Support the reliable, sustainable and secure operations of energy markets through improving Australia’s energy efficiency, performance and productivity for the community.Program 4.1 – EnergyThe objective of this program is to: lead energy market reform to support investment and market outcomes in the long-term interests of consumers through a national approach to the integration of renewable energy and technology into the National Electricity Market, improving the governance of energy markets and implementation of the Gas Market Reform Package; increase national energy productivity and energy efficiency performance; and support the security of domestic and international electricity, gas and liquid fuel supply chains.

Delivery Program 4.1 will be delivered by: Delivering national energy market reforms for the long-term interests of

consumers by working with states and territories through the COAG Energy Council’s national reform agenda

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

Implementing the National Energy Productivity Plan 2015–2030 Implementing a series of agreed reforms to the Limited Merits Review regime to

ensure better price outcomes for energy customers Administering regulatory responsibilities under the Greenhouse and Energy

Minimum Standards Act 2012, the Building Energy Efficiency Disclosure Act 2010 and the Nationwide House Energy Rating Scheme

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

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

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



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

On track

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

Achieved

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

On track

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

Achieved

Review the Limited Merits Review Regime.Achieved

Support the independent feasibility study of a second Tasmanian interconnector.

On track

76


Program 4.1 – EnergyThe objective of this program is to: lead energy market reform to support investment and market outcomes in the long-term interests of consumers through a national approach to the integration of renewable energy and technology into the National Electricity Market, improving the governance of energy markets and implementation of the Gas Market Reform Package; increase national energy productivity and energy efficiency performance; and support the security of domestic and international electricity, gas and liquid fuel supply chains.


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

On track

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

On track

Energy Efficiency Programs: Effective delivery of activities to support

improved energy productivity of Australia's residential and commercial building stock.

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

On track

Greenhouse and Energy Minimum Standards National Legislative Framework:

2016–17

2017–18

2018–19

2019–20

New consultation Regulatory Impact Statements published

5 3 3 3

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

4500 4500 4500 4500

77




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

On track

Australia meets its emissions reduction targets.

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

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

On track

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

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

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

On track

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

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

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

On track

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

Achieved

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

Implement energy market reforms.

Implement gas market reforms.

Implement governance reforms.

Improve national energy productivity and energy efficiency performance.

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

78




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

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


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

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

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

Procurement framework for oil stock tickets developed for Australia to participate in an

International Energy Agency collective action. Mandatory reporting of statistics on petroleum

and other fuels to commence in January 2018. Influence the reform and modernisation agenda of the International Energy Agency.


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

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

As for 2017–18 for remaining nine targets.

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


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

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

79


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

Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2017-18 budget year, including the impact of budget measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Differences between entity resourcing and financial statementsDepartmental

The Agency Resource Statement (Table 1.1) is prepared on a cash basis and provides a consolidated view of all the cash resources available to the Department of the Environment and Energy in 2017-18. For departmental items this includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the Departmental Balance Sheet (Table 3.2). The Comprehensive Income Statement (Table 3.1) shows only the operating appropriation provided each year and excludes the appropriation shown in the Departmental capital budget statement (Table 3.5).

Administered

The resourcing provided to the Clean Energy Finance Corporation Special Account in Table 1.1 is accounted for as equity funding and there is no impact on the Schedule of Budgeted Income and Expenses Administered on Behalf of Government (Table 3.7). The draw downs from the Special Account result in a corresponding increase to Administered Investments in the Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (Table 3.8).

3.1.2 Explanatory notes and analysis of budgeted financial statementsDepartmentalComprehensive Income Statement

The Revenue from Government estimate for 2017-18 of $441.9 million includes $27.4 million in funding for the new measures outlined in Table 1.2. The Department’s funding has also increased by $39.9 million across the forward estimates period due to the measures outlined in Table 1.2.

80


In relation to expenses, the new funding is predominately directed towards suppliers’ expenditure with a modest increase in ASL and employee benefits expenditure. Overall total expenses continue to exceed total revenues in each period and the department has approval to budget for an operating loss in 2017-18 and the forward estimates period. Expenses not requiring appropriation are a significant component of the loss and result from maintaining a make-good provision for the Antarctic. The expenditure of prior year appropriation provided by the Department of Foreign Affairs and Trade also contribute to the loss in 2017-18 and 2018-19.

Budgeted Departmental Balance Sheet

The Department’s net assets position improves in 2017-18 to 2019-20 due to the injection of equity funding by the Government for Antarctic operations to build a new icebreaker and a new research station on Macquarie Island. The forward estimates also include funding to purchase additional plant and equipment for the Antarctic.

AdministeredSchedule of Budgeted Income and Expenses Administered on Behalf of Government

Budgeted administered expenses for 2017-18 total $718.4 million and the Department will pay grants of $291.4 million and $260.0 million of payments to corporate entities in 2017-18. The corporate entity payments are to the Australian Renewable Energy Agency and primarily sourced from the Special Appropriation received by the Department for this purpose.

Administered income from gains in 2017-18 of $498.3 million and $1.1 billion over the forward estimates period is due to water entitlements transferred from the Department of Agriculture and Water Resources. The water entitlements are a non-cash adjustment and the transfer is required to the Commonwealth Environmental Water Holder in the Department.

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

The budgeted administered net assets position increases from $6.7 billion in 2016-17 to $10.7 billion in 2020-21. The increase is driven by the drawdown of CEFC Special Account funds, which are invested in CEFC for the purpose of making new loans and equity investments in the renewable energy sector. The recognition of water entitlements transferred from the Department of Agriculture and Water Resources is also a significant factor.

81


3.2 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 215,857 227,986 227,230 230,180 242,684 Suppliers 205,780 206,289 167,487 176,668 174,660 Grants 4,148 1,100 1,100 1,050 1,050 Payments to the Director of National

Parks 42,829 46,548 47,397 45,802 44,129 Depreciation and amortisation 47,248 49,205 50,440 45,750 72,488 Finance costs 17,100 17,100 17,100 17,100 17,100 Other expenses 1,061 1,856 400 400 400

Total expenses 534,023 550,084 511,154 516,950 552,511 LESS: OWN-SOURCE INCOME Own-source revenue

Sale of goods and rendering of services 38,327 34,348 24,242 24,242 24,242 Other revenue 4,757 723 723 723 723

Total own-source revenue 43,084 35,071 24,965 24,965 24,965 Total own-source income 43,084 35,071 24,965 24,965 24,965 Net (cost of)/contribution by

services (490,939) (515,013) (486,189) (491,985) (527,546)Revenue from Government 410,359 441,944 416,968 429,100 437,923

Surplus/(deficit) attributable to the Australian Government (80,580) (73,069) (69,221) (62,885) (89,623)Total comprehensive income/(loss) (80,580) (73,069) (69,221) (62,885) (89,623)Total comprehensive income/(loss) attributable to the Australian

Government (80,580) (73,069) (69,221) (62,885) (89,623)

82


Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

Note: Impact of net cash appropriation arrangements

2016-17 2017-18 2018-19 2019-20 2020-21

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

Total comprehensive income/(loss)

excluding depreciation/

amortisation expenses previously

funded through revenue

appropriations (33,332) (23,864) (18,781) (17,135) (17,135)

less depreciation/amortisation expenses

previously funded through revenue

appropriations (a) 47,248 49,205 50,440 45,750 72,488

Total comprehensive income/(loss)

- as per the statement of

comprehensive income (80,580) (73,069) (69,221) (62,885) (89,623)Prepared on Australian Accounting Standards basis.(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation

Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity appropriations. For information regarding Departmental Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.

83


Table 3.2: Budgeted departmental balance sheet (as at 30 June)

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000ASSETS Financial assets

Cash and cash equivalents 1,259 1,259 1,259 1,259 1,259 Trade and other receivables 136,589 70,808 69,127 69,092 69,057

Total financial assets 137,848 72,067 70,386 70,351 70,316 Non-financial assets

Buildings 244,578 234,237 230,323 226,839 222,083 Property, plant and equipment 260,535 448,078 512,174 607,463 575,955 Intangibles 16,769 20,627 20,721 21,991 23,638 Inventories 8,777 8,777 8,777 8,777 8,777 Prepayments 4,687 4,687 4,687 4,687 4,687

Total non-financial assets 535,346 716,406 776,682 869,757 835,140 Total assets 673,194 788,473 847,068 940,108 905,456 LIABILITIES Payables

Suppliers 14,239 14,239 14,239 14,239 14,239 Grants 1,108 1,108 1,108 1,108 1,108 Other payables 5,659 5,659 5,659 5,659 5,659

Total payables 21,006 21,006 21,006 21,006 21,006 Provisions

Employee provisions 70,214 70,214 70,214 70,214 70,214 Antarctic make good provisions (a) 570,415 587,515 604,615 621,715 638,815 Other provisions 8,438 8,438 8,438 8,438 8,438

Total provisions 649,067 666,167 683,267 700,367 717,467 Total liabilities 670,073 687,173 704,273 721,373 738,473 Net assets 3,121 101,300 142,795 218,735 166,983 EQUITY (b) Parent entity interest

Contributed equity 440,201 611,449 722,165 860,990 898,861 Reserves 288,488 288,488 288,488 288,488 288,488 Accumulated deficit (725,568) (798,637) (867,858) (930,743) (1,020,366)

Total parent entity interest 3,121 101,300 142,795 218,735 166,983 Total equity 3,121 101,300 142,795 218,735 166,983

Prepared on Australian Accounting Standards basis.

(a) The Department has a "make good" obligation for: the removal and site restoration of buildings and infrastructure located in Antarctica and on sub-Antarctic Macquarie Island; and remediation of past waste disposal sites and areas of ground contamination in Antarctica for which Australia is responsible. These make good provisions are calculated using a net present value methodology. This requires that each year the provision increases by the value of unwinding a discount on the future value of the provisions. This increase results in liabilities that are not covered by assets for the Department. Funding will not be provided to the Department until such time as payments are required to be made, which is beyond the forward estimates.

(b) Equity is the residual interest in assets after the deduction of liabilities.

84


Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2017-18)

Retained earnings

$'000

Asset revaluation reserve

$'000

Contributed equity/ capital$'000

Total equity

$'000

Opening balance as at 1 July 2017

Balance carried forward from previous period(725,568

) 288,488 440,201 3,121

Adjusted opening balance(725,568

) 288,488 440,201 3,121 Comprehensive incomeDeficit for the period (73,069) - - (73,069)Total comprehensive income (73,069) - - (73,069)

of which:Attributable to the Australian Government (73,069) - - (73,069)

Transactions with ownersContributions by owners

Equity Injection - Appropriations - - 146,656 146,656 Departmental Capital Budget - - 24,592 24,592

Sub-total transactions with owners - - 171,248 171,248

Estimated closing balance as at 30 June 2018(798,637

) 288,488 611,449 101,300 Closing balance attributable to the

Australian Government(798,637

) 288,488 611,449 101,300 Prepared on Australian Accounting Standards basis.

85


Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2016-17 Estimated

actual$’000

2017-18Budget

$’000


$’000


$’000


$’000

OPERATING ACTIVITIES Cash received

Appropriations 384,215 542,073 442,891 453,377 462,200 Sale of goods and rendering of

services 38,327 34,348 24,242 24,242 24,242 Other 18,649 - - - -

Total cash received 441,191 576,421 467,133 477,619 486,442 Cash used

Employees 207,707 227,986 227,230 230,180 242,684 Suppliers 205,009 205,566 166,764 175,945 173,937 Grants 4,148 1,100 1,100 1,050 1,050 Payments to Director of National Parks 42,829 46,548 47,397 45,802 44,129 s74 Receipts transferred to OPA 38,327 34,348 24,242 24,242 24,242 Other 1,061 1,856 400 400 400

Total cash used 499,081 517,404 467,133 477,619 486,442 Net cash used by operating activities (57,890) 59,017 - - - INVESTING ACTIVITIES Cash used

Purchase of property, plant and equipment and intangibles 113,918 230,265 110,716 138,825 37,871

Total cash used 113,918 230,265 110,716 138,825 37,871 Net cash used by investing activities (113,918) (230,265) (110,716) (138,825) (37,871)FINANCING ACTIVITIES Cash received

Contributed equity 144,782 146,656 86,249 114,263 13,160 Departmental capital budget 27,026 24,592 24,467 24,562 24,711

Total cash received 171,808 171,248 110,716 138,825 37,871 Net cash from financing activities 171,808 171,248 110,716 138,825 37,871 Net increase (decrease)

in cash held - - - - - Cash and cash equivalents at the

beginning of the reporting period 1,259 1,259 1,259 1,259 1,259 Cash and cash equivalents at the

end of the reporting period 1,259 1,259 1,259 1,259 1,259 Prepared on Australian Accounting Standards basis.

86


Table 3.5: Departmental capital budget statement (for the period ended 30 June)

2016-17 Estimated

actual$’000

2017-18Budget

$’000


$’000


$’000


$’000

NEW CAPITAL APPROPRIATIONS Capital budget – Bill 1 (DCB) 24,937 24,592 24,467 24,562 24,711 Equity injections – Bill 2 144,782 146,656 86,249 114,263 13,160

Total new capital appropriations 169,719 171,248 110,716 138,825 37,871 Provided for:

Purchase of non-financial assets 169,719 171,248 110,716 138,825 37,871 Total Items 169,719 171,248 110,716 138,825 37,871 PURCHASE OF NON-FINANCIAL

ASSETS Funded by capital appropriation (a,b) 86,892 205,673 86,249 114,263 13,160 Funded by capital appropriation -

DCB (c) 27,026 24,592 24,467 24,562 24,711 TOTAL 113,918 230,265 110,716 138,825 37,871 RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLE Total purchases 113,918 230,265 110,716 138,825 37,871 Total cash used to acquire assets 113,918 230,265 110,716 138,825 37,871 Prepared on Australian Accounting Standards basis.(a) Includes both current Appropriation Bill (No. 2) and prior Appropriations Act (No. 2/4/6)

appropriations.(b) Assets funded by capital appropriation in 2016-17 and 2017-18 differ from the amounts included in

the resource statement at Table 1.1 due to an approved Bill (No. 2) – Non Operating Movement of Funds for the acquisition of a new Antarctic Icebreaker.

(c) Includes purchases funded by current and previous years’ Departmental Capital Budgets.

87


Table 3.6: Statement of departmental asset movements (Budget year 2017-18)

Buildings

$’000

Other property, plant and

equipment$’000

Computer software

and intangibles

$’000

Total

$’000As at 1 July 2017

Gross book value 320,338 313,675 79,393 713,406 Accumulated depreciation/amortisation

and impairment (75,760) (53,140) (62,624) (191,524)Opening net book balance 244,578 260,535 16,769 521,882 Capital asset additions

Estimated expenditure on new orreplacement assets

By purchase – appropriation equity (a) 5,018 141,238 400 146,656 By purchase – non operating (b) - 59,017 - 59,017 By purchase – appropriation ordinary

annual services (c) 8,393 4,996 11,203 24,592 Total additions 13,411 205,251 11,603 230,265 Other movementsDepreciation/amortisation expense (23,752) (17,708) (7,745) (49,205)Total other movements (23,752) (17,708) (7,745) (49,205)

As at 30 June 2018Gross book value 333,749 518,926 90,996 943,671 Accumulated depreciation/amortisation

and impairment (99,512) (70,848) (70,369) (240,729)Closing net book balance 234,237 448,078 20,627 702,942 Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill

(No. 2) 2017-18.(b) Includes an approved Bill 2 – Non Operating Movement of Funds for the acquisition of a new

Antarctic Icebreaker.(c) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill

(No.1) 2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

88


Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

2016-17 Estimated

actual$’000

2017-18Budget

$’000


$’000


$’000


$’000EXPENSES

Suppliers 190,437 165,690 130,271 95,281 69,451 Grants 305,968 291,354 269,062 306,200 257,353 Depreciation and amortisation 12 12 12 12 12 Payments to corporate entities 299,414 259,998 237,759 257,572 137,041 Other expenses 1,402 1,308 1,308 - -

Total expenses administered on behalf of Government 797,233 718,362 638,412 659,065 463,857

LESS: OWN-SOURCE INCOME Own-source revenue Taxation revenue

Other taxes 171 171 171 171 171 Total taxation revenue 171 171 171 171 171 Non-taxation revenue

Fees and fines 19,223 20,304 22,951 23,227 23,255 Interest – state and territory

government loans 38 14 3 - - Dividends 19,500 20,800 22,100 23,400 24,700 Other revenue 3,996 4,319 716 5,148 1,307

Total non-taxation revenue 42,757 45,437 45,770 51,775 49,262 Total own-source revenue

administered on behalf of Government 42,928 45,608 45,941 51,946 49,433

Gains Other gains 405,296 498,261 655,407 250,000 235,000

Total gains administered on behalf of Government 405,296 498,261 655,407 250,000 235,000

Total own-sourced income administered on behalf of Government 448,224 543,869 701,348 301,946 284,433

Net (cost of)/contribution by services (349,009) (174,493) 62,936 (357,119) (179,424)

Total comprehensive income/(loss) (349,009) (174,493) 62,936 (357,119) (179,424)Prepared on Australian Accounting Standards basis.

89


Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Taxation receivables 78 78 78 78 78 Trade and other receivables 5,523 5,355 5,295 5,295 5,295 Other investments 3,350,782 3,901,158 4,431,339 5,051,694 5,701,694

Total financial assets3,356,38

3 3,906,59

1 4,436,71

2 5,057,06

7 5,707,067 Non-financial assets

Heritage and cultural assets 1,025 1,013 1,001 989 977 Water assets 3,316,727 3,814,988 4,470,395 4,720,395 4,955,395 Computer software 5 5 5 5 5 Inventories 12,000 12,000 12,000 12,000 12,000 Prepayments 1,169 1,169 1,169 1,169 1,169

Total non-financial assets3,330,92

6 3,829,17

5 4,484,57

0 4,734,55

8 4,969,546 Total assets administered on

behalf of Government 6,687,309 7,735,766 8,921,282 9,791,625 10,676,613 LIABILITIES Payables

Suppliers 11,014 11,014 11,014 11,014 11,014 Grants 2,375 2,375 2,375 2,375 2,375

Total payables 13,389 13,389 13,389 13,389 13,389 Total liabilities administered on

behalf of Government 13,389 13,389 13,389 13,389 13,389 Net assets 6,673,920 7,722,377 8,907,893 9,778,236 10,663,224


90


Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIES Cash received

Interest 38 14 3 - - Taxes 171 171 171 171 171 Dividends 19,500 20,800 22,100 23,400 24,700 Fees and fines 19,223 20,304 22,951 23,227 23,255 Other 3,996 4,319 716 5,148 1,307


Suppliers 190,437 165,690 130,271 95,281 69,451 Grants 305,968 291,354 269,062 306,200 257,353 Payments to corporate entities 299,414 259,998 237,759 257,572 137,041 Other 1,402 1,308 1,308 - -

Total cash used 797,221 718,350 638,400 659,053 463,845 Net cash used by operating

activities (754,293) (672,742) (592,459) (607,107) (414,412)INVESTING ACTIVITIES Cash received

Repayments of advances and loans 340 168 60 - - Total cash received 340 168 60 - - Cash used

Corporate entity investments 1,000,619 550,376 530,181 620,355 650,000 Total cash used 1,000,619 550,376 530,181 620,355 650,000 Net cash from/(used by) investing

activities (1,000,279) (550,208) (530,121) (620,355) (650,000)Net increase/(decrease) in cash held (1,754,572) (1,222,950) (1,122,580) (1,227,462) (1,064,412)Cash and cash equivalents at

beginning of reporting period - - - - - Cash from Official Public Account for:

- Appropriations 406,223 358,332 318,160 330,045 191,963 - Special Accounts 3,263,860 2,863,250 838,383 932,866 909,192

Total cash from Official Public Account 3,670,083 3,221,582 1,156,543 1,262,911 1,101,155

Cash to Official Public Account for: - Appropriations (26,798) (30,164) (33,963) (35,449) (36,743)- Special Accounts (1,888,713) (1,968,468) - - -

Total cash to Official Public Account (1,915,511) (1,998,632) (33,963) (35,449) (36,743)Cash and cash equivalents at end

of reporting period - - - - - Prepared on Australian Accounting Standards basis.

91


Table 3.10: Statement of administered asset movements (Budget year 2017-18)

Heritage

and cultural assets

Water assets

Computer software

Total

$'000 $'000 $'000 $'000As at 1 July 2017

Gross book value 1,060 3,442,853 2,870 3,446,78

3 Accumulated depreciation,

amortisation and impairment (35) (126,127) (2,865) (129,027)

Opening net book balance 1,025 3,316,726 5 3,317,75

6 CAPITAL ASSET ADDITIONSOther movementsAssets received free of charge (a) - 498,261 - 498,261 Depreciation/amortisation expense (12) - - (12)Total other movements (12) 498,261 - 498,249

As at 30 June 2018

Gross book value 1,060 3,941,114 2,870 3,945,04

4 Accumulated depreciation,

amortisation and impairment (47) (126,127) (2,865) (129,039)

Closing net book balance 1,013 3,814,987 5 3,816,00

5 Prepared on Australian Accounting Standards basis.(a) Water assets received from the Department of Agriculture and Water Resources.

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AUSTRALIAN RENEWABLE ENERGY AGENCY


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SECTION 1: ENTITY OVERVIEW AND RESOURCES..........................1.1 Strategic direction statement..........................................................................1.2 Entity resource statement..............................................................................1.3 Budget measures...........................................................................................

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE.................2.1 Budgeted expenses and performance for Outcome 1..................................

SECTION 3: BUDGETED FINANCIAL STATEMENTS........................3.1 Budgeted financial statements.....................................................................3.2 Budgeted financial statements tables..........................................................

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The Australian Renewable Energy Agency is a Corporate Commonwealth Entity under the Public Governance, Performance and Accountability Act 2013 and administers Government financial assistance for renewable energy and related technologies in line with the Australian Renewable Energy Agency Act 2011.

The Australian Renewable Energy Agency objectives are to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia. Through this, the Agency provides options to meet future emission reduction targets at lower cost.

The Australian Renewable Energy Agency’s functions include providing financial assistance for:

the research, development, demonstration, deployment and commercialisation of renewable energy and related technologies

the storage and sharing of knowledge and information about renewable energy technologies.

The Australian Renewable Energy Agency also collects, analyses, interprets and disseminates information and knowledge relating to renewable energy and related technologies and provides advice to the Minister for the Environment and Energy about these technologies and the renewable energy industry.

The Australian Renewable Energy Agency, with the Clean Energy Finance Corporation, jointly manage the Clean Energy Innovation Fund.

In line with this, the Australian Government has announced that the Australian Renewable Energy Agency will be given an expanded remit to enable it to consider supporting a broader range of clean energy technology options, including energy efficiency.

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Table 1.1 shows the total funding from all sources available to the entity for its operations and to deliver programs and services on behalf of the government.

The table summarises how resources will be applied by outcome (government strategic policy objectives) and by administered (on behalf of the government or the public) and departmental (for the entity’s operations) classification.

For more detailed information on special appropriations, please refer to Budget Paper No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, while the ‘Budgeted expenses by Outcome’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

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Australian Renewable Energy Agency Budget Statements

Table 1.1: Australian Renewable Energy Agency resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual$'000

2017-18 estimate

$'000Opening balance/cash reserves at 1 July 41,660 56,692 Funds from Government

Annual appropriations - ordinary annual services (a) Outcome 1 1,221 2,073

Total annual appropriations 1,221 2,073 Amounts received from related entities

Amounts from Portfolio Department (b) 298,193 257,925 Total amounts received from related entities 298,193 257,925 Total funds from Government 299,414 259,998 Funds from other sources

Interest 1,144 1,000 Other 12,700 -

Total funds from other sources 13,844 1,000 Total net resourcing for Australian Renewable Energy Agency 354,918 317,690 2016-17 2017-18Average staffing level (number) (c) 2 2 Available appropriations according to the ARENA Act 299,414 259,998 Less: estimated actual expenses (299,414) (259,998)Available appropriations carried forward (d) - - Prepared on a resourcing (i.e. appropriations available) basis.Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.

(a) Appropriation Bill (No. 1) 2017-18.(b) Funding provided by the Portfolio Department that is not specified within the Annual

Appropriation Bills as a payment to that corporate entity (for example, a grant awarded to a corporate entity from one of its Portfolio Department's administered programs).

(c) The Agency only has two employees, the CEO and CFO. Under section 62 of the Australian Renewable Energy Agency Act 2011 all other staff necessary to assist the Agency must be persons employed under the Public Services Act 1999 who are employed by the Department and made available to the Agency by the Secretary of the Department.

(d) Funding provided by the Portfolio Department reflects the Agency’s Special Appropriation under section 64 of the Australian Renewable Energy Agency Act 2011.

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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Australian Renewable Energy Agency are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Australian Renewable Energy Agency 2017-18 Budget measuresPart 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO)There are no 2017-18 Budget measures relating to the Australian Renewable Energy Agency.

Part 2: Other measures not previously reported in a portfolio statement

Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Measures

Budget Savings (Omnibus) Bill – amendments (a) 1.1

Departmental expenses - 150,000 168,000 235,000 122,000

Total - 150,000 168,000 235,000 122,000 Total measures

Departmental - 150,000 168,000 235,000 122,000

Total - 150,000 168,000 235,000 122,000 Prepared on a Government Finance Statistics (fiscal) basis. (a) The lead entity for measure Budget Savings (Omnibus) Bill – amendments is the Department of

Social Services.

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The most recent corporate plan and annual performance statement for the Australian Renewable Energy Agency can be found at https://arena.gov.au/about-arena/corporate-publications/

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https://arena.gov.au/about-arena/corporate-publications/



Outcome 1: Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewable energy by administering financial assistance, developing analysis and advice about, and sharing information and knowledge with regard to, renewable energy and related technologies.

Linked programs

Clean Energy Finance Corporation Program 1.1 – Clean Energy Finance Corporation

Contribution to Outcome 1 made by linked programsThe Clean Energy Innovation Fund is jointly managed by the Agency and the Clean Energy Finance Corporation, drawing on their complementary experience and expertise. The Clean Energy Innovation Fund has up to $200 million available for debt and equity investments in emerging clean energy projects and businesses, that should allow projects at the later end of the innovation chain to deliver a financial return to taxpayers, in addition to the public good return of improving competitiveness of renewable energy and related technologies.

Department of the Environment and Energy Program 2.1 – Reducing Australia’s Greenhouse Gas Emissions Program 2.3 – Renewable Energy Technology Development

Contribution to Outcome 1 made by linked programsThe Australian Renewable Energy Agency contributes to implementing policies for the research, development, demonstration, deployment and commercialisation of clean energy technologies. These policies are developed by the Department of the Environment and Energy.

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Table 2.1.1: Budgeted expenses for Outcome 1Outcome 1: Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewable energy by administering financial assistance, developing analysis and advice about, and sharing information and knowledge with regard to, renewable energy and related technologies.

2016-17 Estimated actual

$'000

2017-18Budget

$'000


$'000

2019-20 Forward estimat

e$'000

2020-21Forward estimat

e$'000

Program 1.1: Australian Renewable Energy AgencyRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 1,221 2,073 2,463 2,868 3,006

Payment from related entities 281,267 257,407 227,677 248,579 130,640

Expenses not requiring appropriation in the budget year 7,354 41,215 6,894 4,826 4,846

Revenues from other independentsources 3,844 1,000 200 200 200

Total expenses for Program 1.1 293,686 301,695 237,234 256,473 138,692 Outcome 1 totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 1,221 2,073 2,463 2,868 3,006

Payment from related entities 281,267 257,407 227,67

7 248,579 130,640

Expenses not requiring appropriation in the budget year 7,354 41,215 6,894 4,826 4,846

Revenues from other independentsources 3,844 1,000 200 200 200

Total expenses for Outcome 1 293,686 301,695 237,23

4 256,473 138,692 2016-17 2017-18Average staffing level (number) (a) 2 2

(a) The Department provides staff resources to the Agency free of charge under section 62 of the Australian Renewable Energy Agency Act 2011. This table does not include these staff resources. Budgeted expenses for staff made available to the Agency by the Secretary of the Department are included in Program 2.3 of the Department.

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Table 2.1.2: Performance criteria for Outcome 1Table 2.1.2 details the performance criteria for each program associated with Outcome 1. It summarises how each program is delivered and where 2017-18 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewable energy by administering financial assistance, developing analysis and advice about, and sharing information and knowledge with regard to, renewable energy and related technologies.

Program 1.1 – Australian Renewable Energy Agency – to provide funding for research, development and pre-commercial deployment projects that have the potential to lead to the commercialisation of new renewable energy products or services; and to build and support networks, and share the knowledge, insights and data from our funded projects to help participants in Australia’s energy market learn from each other’s experiences.

Delivery To deliver this outcome, the Agency: Provides financial assistance for the research, development,

demonstration, deployment and commercialisation of renewable energy and related technologies

Provides financial assistance for, and undertakes, the collection, storage, analysis and sharing of knowledge and information about renewable energy and related technologies

Provides advice to the Minister for the Environment and Energy about renewable energy and related technologies and the renewable energy industry

Jointly administers the Clean Energy Innovation Fund with the Clean Energy Finance Corporation

The Agency’s financial assistance goes primarily to activities that are expected to advance renewable energy technologies towards commercial readiness, improve business models, or reduce overall industry costs. Organisations developing, testing or deploying innovative renewable energy solutions are the immediate beneficiaries of much of the Agency’s activity. In the long term it is Australian energy users who will benefit from the availability of more competitive renewable energy.



2016-17 Strategic Investment: Provide financial assistance to new projects in accordance with the principles and priorities outlined in the Agency’s General Funding Strategy and Investment Plan.

Target: Provide financial assistance to one or more new projects in each of the Agency’s priority areas, including, for 2016-17, conclusion and contracting of large-scale solar projects in accordance with ARENA’s $100 million competitive round.- for 2016-17 and future years, other research, development and demonstration projects in accordance with the Agency’s Investment plan.

Forecast: On track

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Program 1.1 – Australian Renewable Energy Agency – to provide funding for research, development and pre-commercial deployment projects that have the potential to lead to the commercialisation of new renewable energy products or services; and to build and support networks, and share the knowledge, insights and data from our funded projects to help participants in Australia’s energy market learn from each other’s experiences.


Strategic Investment: Jointly manage the Clean Energy Innovation Fund

Target: Clean Energy Innovation Fund jointly managed in accordance with arrangements established between the Agency and the Clean Energy Finance Corporation.Forecast: Achieved

Strong Project Assessment, Negotiation Delivery and Knowledge Sharing: Effectively manage projects in accordance with agreement terms to deliver intended outcomes, learn and improve.

Target: Significant project outcomes and lessons learned disseminated.Forecast: On Track

2017-18 Strategic Investment: Provide financial assistance to new projects in accordance with the principles and priorities outlined in the Agency’s General Funding Strategy and Investment Plan. 10

Provide financial assistance to one or more new projects in each of the Agency’s priority areas.

Strong Project Assessment, Negotiation Delivery and Knowledge Sharing: Effectively manage projects in accordance with agreement terms to deliver intended outcomes, learn and improve.

Significant project outcomes and lessons learned disseminated.

2018-19 and future years

As for 2017-18 As for 2017-18

Purpose To accelerate Australia’s shift to an affordable and reliable renewable energy future.11

10 The Agency’s General Funding Strategy is produced annually, to cover the following three years, and is provided to the Minister for the Environment and Energy for approval by the end of June each year. The Agency’s Investment Plan is prepared in accordance with the General Funding Strategy, and is updated from time to time. The current documents are available at www.arena.gov.au

11 Refers to updated purpose that will be reflected in the 2017-18 Corporate Plan.

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http://www.arena.gov.au/





3.1.1 Differences between entity resourcing and financial statementsThe Australian Renewable Energy Agency’s resourcing statement Table 1.1 is directly comparable to the budgeted financial statements.

3.1.2 Explanatory notes and analysis of budgeted financial statementsSince the publication of the 2016-17 Portfolio Budget Statements, the Parliament passed the Budget Savings (Omnibus) Bill 2016, which saw $800 million of funding under the Australian Renewable Energy Agency Act 2011 restored to the Australian Renewable Energy Agency over five financial years between 2017-18 and 2021-22.

The budgeted financial statements for 2017-18 and forward years reflect the restored level of the Australian Renewable Energy Agency’s legislated funding. In order to have all available funds utilised in the next five years, the Australian Renewable Energy Agency will need to commit the funds to projects in the next three years. Accordingly, the Agency has budgeted for increased level of activity between 2017-18 and 2019-20, as reflected in increased operating expenses.

The Australian Renewable Energy Agency is budgeting for a deficit in 2017-18 due to an expected outlay of $41 million in grant expenditure which will not require any drawdown from its appropriation funding. This amount was returned to the Agency from a grant project in 2015-16 and the funds were retained and invested by the Agency for project funding in 2017-18.

All forward years are expected to provide a small surplus. The surplus primarily represents the investment calls on the Australian Renewable Energy Agency made by the Renewable Energy Venture Capital Fund. The Agency does not have a capital appropriation, therefore runs at a surplus when calls are required.

Resources received free of charge represents the cost associated with the resources made available to the Australian Renewable Energy Agency by

107


the Secretary of the Department under s62 of the Australian Renewable Energy Agency Act 2011.

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2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 932 951 970 979 1,009 Suppliers 28,848 31,725 32,360 33,007 26,406 Grants 262,718 267,501 201,986 220,659 109,449 Depreciation and amortisation 175 518 918 828 828 Other expenses 1,013 1,000 1,000 1,000 1,000


Interest 1,144 1,000 200 200 200 Other revenues 2,700 - - - -

Total own-source revenue 3,844 1,000 200 200 200 Gains

Resources received free of charge 7,179 6,640 5,976 3,998 4,018 Total gains 7,179 6,640 5,976 3,998 4,018 Total own-source income 11,023 7,640 6,176 4,198 4,218 Net (cost of)/contribution by services (282,663)

(294,055)

(231,058)

(252,275)

(134,474)

Revenue from Government 299,414 259,998 237,759 257,572 137,041

Surplus/(deficit) attributable to the Australian Government 16,751 (34,057) 6,701 5,297 2,567 Total comprehensive income/(loss) 16,751 (34,057) 6,701 5,297 2,567

Total comprehensive income/(loss) attributable to the Australian Government 16,751 (34,057) 6,701 5,297 2,567 Prepared on Australian Accounting Standards basis.

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Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2016-17

Estimated actual$'000

2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 56,692 13,976 16,094 18,122 20,150 Trade and other receivables 1,676 1,676 1,676 1,676 1,676 Other investments 30,553 37,496 42,369 45,966 47,333


Property, plant and equipment 1,180 890 600 400 200 Intangibles 451 2,457 2,457 2,329 1,701 Other non-financial assets 174 174 174 174 174


Suppliers 2,208 2,208 2,208 2,208 2,208 Grants 2,979 2,979 2,979 2,979 2,979


Employee provisions 160 160 160 160 160 Total provisions 160 160 160 160 160 Total liabilities 5,347 5,347 5,347 5,347 5,347 Net assets 85,379 51,322 58,023 63,320 65,887 EQUITY* Parent entity interest

Retained surplus (accumulated deficit) 85,379 51,322 58,023 63,320 65,887

Total parent entity interest 85,379 51,322 58,023 63,320 65,887 Total equity 85,379 51,322 58,023 63,320 65,887 Prepared on Australian Accounting Standards basis.*Equity is the residual interest in assets after the deduction of liabilities.

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Retainedearnings

$'000

Totalequity

$'000Opening balance as at 1 July 2017

Balance carried forward from previous period 85,379 85,379 Adjusted opening balance 85,379 85,379 Comprehensive income

Surplus/(deficit) for the period (34,057)(34,057

)

Total comprehensive income (34,057)(34,057

)of which:

Attributable to the Australian Government 51,322 51,322 Estimated closing balance as at 30 June 2018 51,322 51,322Closing balance attributable to the Australian Government 51,322 51,322 Prepared on Australian Accounting Standards basis.

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2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Receipts from Government 299,414 259,998 237,759 257,572 137,041 Return of grants 12,700 - - - - Interest 1,144 1,000 200 200 200


Employees 932 951 970 979 1,009 Suppliers 21,669 25,085 26,384 29,009 22,388 Grants 262,718 267,501 201,986 220,659 109,449

Total cash used 285,319 293,537 229,340 250,647 132,846 Net cash from/(used by) operating activities 27,939 (32,539) 8,619 7,125 4,395 INVESTING ACTIVITIES Cash used

Purchase of property, plant andequipment and intangibles 1,270 2,234 628 500 -

Investments 11,637 7,943 5,873 4,597 2,367 Total cash used 12,907 10,177 6,501 5,097 2,367 Net cash from/(used by) investing activities (12,907) (10,177) (6,501) (5,097) (2,367)Net increase/(decrease) in cash held 15,032 (42,716) 2,118 2,028 2,028

Cash and cash equivalents at thebeginning of the reporting period 41,660 56,692 13,976 16,094 18,122

Cash and cash equivalents at the end of the reporting period 56,692 13,976 16,094 18,122 20,150 Prepared on Australian Accounting Standards basis.

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Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2016-17


2017-18Budget

$'000


$'000


$'000


$'000

PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from departmental resources (a) 1,270 2,234 628 500 -

TOTAL 1,270 2,234 628 500 - RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 1,270 2,234 628 500 - Total cash used to acquire assets 1,270 2,234 628 500 - Prepared on Australian Accounting Standards basis.(a) Includes the following sources of funding:

funding provided by the Portfolio Department reflecting the Agency’s Special Appropriation under section 64 of the Australian Renewable Energy Agency Act 2011, including rollover of unspent funds; and

internally developed assets.

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Other property,plant and

equipment$'000

Computersoftware and

intangibles$'000

Total

$'000

As at 1 July 2017Gross book value 1,270 854 2,124 Accumulated depreciation/ amortisation and impairment (90) (403) (493)

Opening net book balance 1,180 451 1,631 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - other - 2,234 2,234 Total additions - 2,234 2,234 Other movements Depreciation/amortisation expense (290) (228) (518)Total other movements (290) (228) (518)

As at 30 June 2018Gross book value 1,270 3,088 4,358 Accumulated depreciation/ amortisation and impairment (380) (631) (1,011)

Closing net book balance 890 2,457 3,347Prepared on Australian Accounting Standards basis.

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BUREAU OF METEOROLOGY


116


SECTION 1: ENTITY OVERVIEW AND RESOURCES.........................1.1 Strategic direction statement........................................................................1.2 Entity resource statement............................................................................1.3 Budget measures.........................................................................................

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE................2.1 Budgeted expenses and performance for Outcome 1..................................


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The Bureau of Meteorology provides trusted, reliable and responsive weather, water, climate and ocean services for Australia—all day, every day. The Bureau of Meteorology’s work directly informs decisions by governments, industry and the community and supports all Australians, the Australian Defence Force and key sectors such as emergency management, aviation, transport, water management, agriculture and environmental management.

To achieve this, across the domains of weather, water, climate and oceans, the Bureau of Meteorology: monitors and reports on current conditions

provides forecasts, warnings and long-term outlooks

analyses and explains trends

fosters greater public understanding and use of information, and

extends its understanding of, and ability to forecast, Australian conditions.

To drive competitive advantage for Australian businesses and industries, and accumulate significant benefits for the wider community, the Bureau of Meteorology will continue to pursue the outcome of informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

To achieve this outcome in an intensely dynamic environment, the Bureau of Meteorology has developed a new strategy that augments its strong science and technology foundations with new skills and new ways of doing things to consistently provide customers with an outstanding service experience. Taking effect at the start of the 2017–18 financial year, the new Strategic Plan 2017–2022 will have four key areas of focus: Impact and Value - products and services that benefit the Australian

community and drive competitive advantage for businesses and industries.

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Operational Excellence - outstanding people, science, systems, infrastructure and partnerships working together for maximum simplicity, productivity and agility.

Insight and Innovation - deep understanding and creative thinking that generates novel solutions for our customers and our organisation.

The Bureau Way - one enterprise, that is safe and diverse, where our people grow and are empowered to excel, and where our customers come first, trust us and consider that we are a pleasure to work with.

During 2017–18, the Bureau of Meteorology will continue to implement the Water Information Program, which received ongoing funding in the 2016–17 Mid-Year Economic and Fiscal Outlook. Under this program, the Bureau will continue to provide farmers, irrigators and rural water agencies with essential information and services that are critical to the profitability and productivity of Australian agriculture and that support our international competitiveness and community well-being.

Under the Stronger Farmers, Stronger Economy—new drought management framework measure from 2015-16, the Bureau of Meteorology is continuing to improve its seasonal climate forecast service for the Australian agricultural sector. Under this initiative the Bureau is developing more regular, detailed and accurate climate forecasts to support farmers in managing Australia’s highly-variable weather and climate for increased competitive advantage.

Following the successful commissioning of the Bureau of Meteorology’s new supercomputer in June 2016, the Bureau of Meteorology will continue to undertake a program of improvements to enhance the frequency, accuracy and certainty of forecasts in the coming years. Funded for seven years in the 2014–15 Budget, the increased computing power will allow the Bureau to enhance its forecast services to meet the growing needs of stakeholders into the future.

Under the measure Bureau of Meteorology — improved security and resilience, the Bureau will improve the security and resilience of its Information Communications Technology systems and business processes. This will assist the Bureau to continue to provide reliable, ongoing access to weather, climate, water and oceans information.

The Bureau of Meteorology remains committed to increasing the efficient use of our resources, investing in the skills and capabilities of our staff, and evaluating opportunities to increase impact and revenue consistent with the Australian Government Charging Framework.

121

Bureau of Meteorology Budget Statements






122


Table 1.1: Bureau of Meteorology resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000Departmental Annual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 101,252 106,519 Departmental appropriation (c) 228,407 229,757 s 74 retained revenue receipts (d) 71,363 79,522 Departmental capital budget (e) 42,125 48,111

Annual appropriations - other services - non-operating (f) Prior year appropriations available (b) 6,554 - Equity injection 28,781 40,217

Total departmental annual appropriations 478,482 504,126 Total departmental resourcing 478,482 504,126 Total resourcing for the Bureau of Meteorology 478,482 504,126 2016-17 2017-18Average staffing level (number) 1,602 1,565 Third party payments from and on behalf of other entities

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Payments made to other entities for the provision of services (disclosed above) 28,636 28,929 Receipts received from other entities for the provision of services (disclosed above in s74 Retained revenue receipts section above) 6,461 7,344 Prepared on a resourcing (i.e. appropriations available) basis.Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2017-18.

(b) Excludes $3.9 million subject to administrative quarantine by Finance or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

(c) Excludes departmental capital budget (DCB). (d) Estimated retained revenue receipts under section 74 of the Public Governance, Performance

and Accountability Act 2013 (PGPA Act).(e) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form

part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

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

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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: Bureau of Meteorology 2017-18 Budget measuresPart 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Expense measures Public Service Modernisation Fund – transformation and innovation stream (a) 1.1

Departmental expenses - - - - -

Total - - - - - Bureau of Meteorology – improved security and resilience 1.1

Departmental expenses - nfp nfp nfp nfp

Total - nfp nfp nfp nfp Total expense measures

Departmental - nfp nfp nfp nfp

Total - nfp nfp nfp nfp Capital measures

Bureau of Meteorology – improved security and resilience 1.1

Departmental capital - nfp nfp nfp nfp

Total - nfp nfp nfp nfp Total capital measures

Departmental - nfp nfp nfp nfp

Total - nfp nfp nfp nfp Prepared on a Government Finance Statistics (fiscal) basis.

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

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The most recent corporate plan for Bureau of Meteorology can be found at: http://www.bom.gov.au/inside/Bureau-of-Meteorology-Corporate-Plan-2016-17.pdf.

The most recent annual performance statement can be found at: http://www.bom.gov.au/inside/eiab/reports/ar15-16/doc/2.2-Bureau-of-Meteorology-Annual-Performance-Statement.pdf.

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Outcome 1: Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

Linked programs

The outcomes of Program 1.1 Bureau of Meteorology contribute to meeting the objectives of a number of programs delivered by other Commonwealth entities, including the Department of the Environment and Energy, the Department of Agriculture and Water Resources, the Attorney-General's Department, the Department of Health, and the Department of Defence.

126





Outcome 1: Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Program 1.1: Bureau of MeteorologyDepartmental expenses

Departmental appropriation 228,407 229,757 221,752 219,107 217,366 s 74 Retained revenue receipts (a) 69,538 74,161 69,284 61,758 61,758 Expenses not requiring appropriation in the Budget year (b) 73,228 73,228 73,228 73,228 73,228

Departmental total 371,173 377,146 364,264 354,093 352,352 Total expenses for program 1.1 371,173 377,146 364,264 354,093 352,352 Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 228,407 229,757 221,752 219,107 217,366 s74 Retained revenue receipts (a) 69,538 74,161 69,284 61,758 61,758 Expenses not requiring appropriation in the Budget year (b) 73,228 73,228 73,228 73,228 73,228

Departmental total 371,173 377,146 364,264 354,093 352,352 Total expenses for Outcome 1 371,173 377,146 364,264 354,093 352,352

2016-17 2017-18

Average staffing level (number) (c) 1,602 1,565 (a) Estimated expenses incurred in relation to receipts retained under section 74 of the Public

Governance, Performance and Accountability Act 2013.(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

amortisation expenses, make good expenses and audit fees.(c) ASL numbers include staff used for the purpose of asset construction (capitalised staff).

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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.Program 1.1 – Bureau of MeteorologyProvides Australians with the environmental intelligence they need to manage and live within their natural environment, encompassing the atmosphere, oceans, water and land.

Delivery Program 1.1 will be delivered by: Weather, water, climate and ocean products and services that benefit the

Australian community and drive competitive advantage for businesses and industries.

Outstanding people, science, systems, infrastructure and partnerships working together for maximum simplicity, productivity and agility.

Deep understanding and creative thinking that generates novel solutions for our customers and our organisation.

One enterprise, that is safe and diverse, where our people grow and are empowered to excel, and where our customers come first, trust us and consider that we are a pleasure to work with.



2016-17 Observations meet accuracy, timeliness, completeness, coverage and accessibility specifications.

Forecasts meet accuracy, coverage and timeliness specifications, and are used extensively, and satisfy users.

Warnings meet accuracy, timeliness and coverage specifications, and are effective in influencing responses to impending critical events.

Data and information meet accuracy, timeliness and coverage specifications and satisfy users.

Accurate and timely advice effectively informs decision-making and satisfies the needs of stakeholders and users.

Increased accuracy and capacity of the Bureau’s products and services, and increased levels of stakeholder satisfaction.

Australia’s interests are protected and advanced through effective engagement and the maintenance and development of international agreements that deliver improved outcomes for Australia.

The Bureau is on track to meet the 2016-17 key performance indicators.Evidence of achievement will be described in the Bureau's Annual Performance Statement 2016-17 in line with the evidence targets described in the 2016-17 Corporate Plan.

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Program 1.1 – Bureau of MeteorologyProvides Australians with the environmental intelligence they need to manage and live within their natural environment, encompassing the atmosphere, oceans, water and land.


2017-18 Financial and social value is delivered to Government, industry and the Australian community.

Delivery of products and services that meet customer requirements, are delivered to budget, meet quality and security specifications and benchmark well in relation to international standards and peer organisations.

The speed, maturity and quality of innovation and novel solutions meets customer needs or enhances internal capability.

Feedback from staff, customers and partners demonstrates alignment of our actual behaviours with our stated intent to create a safe, diverse and empowered enterprise that puts customers first, and provides an outstanding experience every time that they engage with us.

The Bureau’s enterprise level performance criteria have broad relevance across the agency as a whole. Both quantitative and qualitative targets that collectively demonstrate the achievement of the Bureau’s enterprise level performance criteria will be set in the Bureau’s Corporate Plan 2017-18 and reported in the Bureau’s Annual Performance Statement 2017-18.

2018-19 and beyond As for 2017-18 As for 2017-18

Purposes (b) To provide trusted, reliable and responsive weather, water, climate and ocean services for Australia—all day, every day.

Material changes to Program 1.1 resulting from the following measure:

Bureau of Meteorology – improved security and resilience (a) New or modified performance criteria and/or targets that reflect new or materially changed programs are

shown in italics. (b) Refers to updated purposes that will be reflected in the 2017-18 Corporate Plan.

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3.1.1 Explanatory notes and analysis of budgeted financial statementsAn analysis of the Bureau of Meteorology’s budgeted financial statements, as reflected in the Bureau’s budgeted departmental financial statements and administered schedules for the 2017–18 Budget, is provided below:

Total revised revenue to the Bureau in 2017–18 is estimated to be $308.1 million, an increase of $9.5 million from the 2016–17 Budget estimated actual. The movement in funding is the result of:

funding associated with the Budget measure Stronger farmers, Stronger Economy – new drought management framework

funding associated with the 2016-17 Additional estimates Budget measure – Essential Commonwealth Water Functions

funding associated with the 2017-18 Budget measure – Improved security and resilience

increased funding associated with cost recoverable projects and services, and

reduced funding as a result of the increase in the Efficiency Dividend.

Total expenses are estimated to be $377.1 million, an increase of $6.0 million from the 2016–17 estimated actual. Whilst the Bureau is no longer funded for Depreciation through Appropriation Bill 1 the expenditure is still recognised on the Income Statement.

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2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 184,390 174,826 172,705 172,659 173,317 Suppliers 109,625 125,183 114,429 104,301 101,901 Depreciation and amortisation 75,189 75,189 75,189 75,189 75,189 Losses from asset sales 1 1 1 1 1 Other expenses 1,968 1,947 1,940 1,943 1,944


Sale of goods and rendering ofservices 70,138 78,297 71,551 62,358 62,358

Total own-source revenue 70,138 78,297 71,551 62,358 62,358 Total own-source income 70,138 78,297 71,551 62,358 62,358 Net (cost of)/contribution by services (301,035)

(298,849)

(292,713)

(291,735)

(289,994)

Revenue from Government 228,407 229,757 221,752 219,107 217,366 Surplus/(deficit) attributable to the Australian Government (72,628) (69,092) (70,961) (72,628) (72,628)Total comprehensive income/(loss) (72,628) (69,092) (70,961) (72,628) (72,628)Total comprehensive income/(loss) attributable to the Australian Government (72,628) (69,092) (70,961) (72,628) (72,628)


2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000

Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations 600 4,136 2,267 600 600

less depreciation/amortisationexpenses previously funded throughrevenue appropriations (a) 73,228 73,228 73,228 73,228 73,228

Total comprehensive income/(loss) - as per the statement of comprehensive income (72,628) (69,092) (70,961) (72,628) (72,628)Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where

Appropriation Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation (Bill No. 1) equity appropriations. For information regarding Department Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.

131


Table 3.2: Budgeted departmental balance sheet (as at 30 June)2016-17


2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 294 294 294 294 294Trade and other receivables 120,106 119,707 120,457 121,207 121,207Other financial assets 3,454 3,454 3,454 3,454 3,454


Land and buildings 108,724 106,042 103,060 99,904 97,948Property, plant and equipment 353,180 369,127 359,407 357,163 332,587Intangibles 76,261 83,381 90,405 93,336 97,164Inventories 7,205 7,205 7,205 7,205 7,205Other non-financial assets 5,809 5,809 5,809 5,809 5,809


Suppliers 35,815 35,815 35,815 35,815 35,815Other payables 41,350 41,350 41,350 41,350 41,350


Employee provisions 70,902 71,652 72,402 73,152 73,152Other provisions 22,320 22,320 22,320 22,320 22,320

Total provisions 93,222 93,972 94,722 95,472 95,472 Total liabilities 170,387 171,137 171,887 172,637 172,637 Net assets 504,646 523,882 518,204 515,735 493,031 EQUITY* Parent entity interest

Contributed equity 706,033 794,361 859,644 929,803 979,727 Reserves 243,400 243,400 243,400 243,400 243,400

Retained surplus (accumulated deficit) (444,787)

(513,879)

(584,840)

(657,468)

(730,096)


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Retainedearnings

$'000

Assetrevaluation

reserve$'000

Contributedequity/capital$'000

Totalequity

$'000

Opening balance as at 1 July 2017Balance carried forward from previous period (444,787) 243,400 706,033 504,646

Adjusted opening balance (444,787) 243,400 706,033 504,646 Comprehensive income

Surplus/(deficit) for the period (69,092) - - (69,092)Total comprehensive income (69,092) - - (69,092)Transactions with owners Contributions by owners

Equity injection - - 40,217 40,217 Departmental capital budget (DCB) - - 48,111 48,111

Sub-total transactions with owners - - 88,328 88,328 Estimated closing balance as at 30 June 2018 (513,879) 243,400 794,361 523,882 Closing balance attributable to the Australian Government (513,879) 243,400 794,361 523,882


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2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Appropriations 303,762 294,506 283,520 280,715 279,724 Sale of goods and rendering of services 70,138 78,297 71,551 62,358 62,358 Net GST received 8,310 8,310 8,310 8,310 8,310


Employees 183,640 174,076 171,955 171,909 173,317 Suppliers 111,593 127,130 116,369 106,244 103,845 Net GST paid 4,560 4,560 4,560 4,560 4,560 s74 Retained revenue receiptstransferred to OPA 70,138 64,350 62,518 62,358 62,358

Total cash used 369,931 370,116 355,402 345,071 344,080 Net cash from/(used by) operating activities 12,279 10,997 7,979 6,312 6,312 INVESTING ACTIVITIES Cash received

Proceeds from sales of property,plant and equipment 1,225 1,225 1,225 1,225 1,225


Purchase of property, plant andequipment and intangibles 80,659 96,799 70,736 73,945 53,710 Other 3,751 3,751 3,751 3,751 3,751

Total cash used 84,410 100,550 74,487 77,696 57,461 Net cash from/(used by) investing activities (83,185) (99,325) (73,262) (76,471) (56,236)FINANCING ACTIVITIES Cash received

Contributed equity 70,906 88,328 65,283 70,159 49,924 Total cash received 70,906 88,328 65,283 70,159 49,924 Net cash from/(used by) financing activities 70,906 88,328 65,283 70,159 49,924 Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 294 294 294 294 294 Cash and cash equivalents at the end of the reporting period 294 294 294 294 294 Prepared on Australian Accounting Standards basis.

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2017-18Budget

$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 42,125 48,111 48,155 44,381 45,475 Equity injections - Bill 2 28,781 40,217 17,128 25,778 4,449


Purchase of non-financial assets 70,906 88,328 65,283 70,159 49,924 Total items 70,906 88,328 65,283 70,159 49,924 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 34,748 41,366 17,128 25,778 4,449 Funded by capital appropriation - DCB (b) 42,125 48,111 48,155 44,381 45,475 Funded internally from departmental resources (c) 3,786 7,322 5,453 3,786 3,786

TOTAL 80,659 96,799 70,736 73,945 53,710 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 80,659 96,799 70,736 73,945 53,710 Total cash used to acquire assets 80,659 96,799 70,736 73,945 53,710 Prepared on Australian Accounting Standards basis.(a) Includes both current Appropriation Bill (No. 2) and prior Act No. 2/4 appropriations.(b) Does not include annual finance lease costs. Includes purchases from current and previous years'

Departmental Capital Budgets (DCBs).(c) Includes the following sources of funding:

- s 74 Retained revenue receipts;- proceeds from the sale of assets.

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Bureau of Meteorology Budget StatementsTable 3.6: Statement of departmental asset movements (Budget year 2017-18)

Land

$'000

Buildings

$'000


equipment$'000

Computersoftware

andintangibles

$'000

Other

$'000

Total

$'000

As at 1 July 2017Gross book value 16,759 108,050 524,139 201,275 50 850,273 Accumulated depreciation/ amortisation and impairment - (16,085) (170,959) (125,027) (37) (312,108)

Opening net book balance 16,759 91,965 353,180 76,248 13 538,165 Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation equity (a) - - 41,084 282 - 41,366 By purchase - appropriation ordinary annual services (b) - 1,544 22,836 23,731 - 48,111 By purchase - other - 1,200 6,122 - - 7,322 Total additions - 2,744 70,042 24,013 - 96,799 Other movements Depreciation/amortisation expense - (4,226) (54,070) (16,893) - (75,189)Disposals (c) - (1,200) (25) - - (1,225)Total other movements - (5,426) (54,095) (16,893) - (76,414)

As at 30 June 2018Gross book value 16,759 109,594 594,156 225,288 50 945,847 Accumulated depreciation/ amortisation and impairment - (20,311) (225,029) (141,920) (37) (387,297)

Closing net book balance 16,759 89,283 369,127 83,368 13 558,550 Prepared on Australian Accounting Standards basis.(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill

(No. 2) 2017-18.(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1)

2017-18 for depreciation/amortisation expenses, DCBs or other operational expenses.(c) Net proceeds may be returned to the OPA.

136



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

OWN-SOURCE INCOME Own-source revenue Non-taxation revenue

Sale of goods and rendering of services nfp nfp nfp nfp nfpTotal non-taxation revenue nfp nfp nfp nfp nfpTotal own-source revenue administered on behalf of Government nfp nfp nfp nfp nfpTotal own-sourced income administered on behalf of Government nfp nfp nfp nfp nfpNet (cost of)/contribution by services nfp nfp nfp nfp nfpTotal comprehensive income/(loss) nfp nfp nfp nfp nfpPrepared on Australian Accounting Standards basis.

137



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Sales of goods and rendering of services nfp nfp nfp nfp nfp

Total cash received nfp nfp nfp nfp nfpNet cash from/(used by) operating activities nfp nfp nfp nfp nfpNet increase/(decrease) in cash held nfp nfp nfp nfp nfp

Cash and cash equivalents atbeginning of reporting period

Cash to Official Public Account for:

- Appropriations nfp nfp nfp nfp nfpTotal cash to Official Public Account nfp nfp nfp nfp nfp

Cash and cash equivalents at end of reporting period nfp nfp nfp nfp nfpPrepared on Australian Accounting Standards basis.

138

CLEAN ENERGY FINANCE CORPORATION


140





142




The Clean Energy Finance Corporation was established to facilitate increased flows of finance into the clean energy sector. The Corporation invests in accordance with its legislation, the Clean Energy Finance Corporation Act 2012 and the Clean Energy Finance Corporation Investment Mandate Direction 2016 (No.2) [Investment Mandate 2016 (No.2)], as made by the Minister for the Environment and Energy and the Minister for Finance which took effect on 11 January 2017.

The Clean Energy Finance Corporation is an independent statutory authority - defined as a corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013. The Corporation has access to $10 billion in appropriations via the Clean Energy Finance Corporation Special Account (credited with $2 billion every 1 July from 2013 to 2017 inclusive, in accordance with section 46 of the Clean Energy Finance Corporation Act 2012).

The Clean Energy Finance Corporation is governed by an independent Board which has statutory responsibility for decision-making, performance of the Corporation’s functions and managing the Corporation’s investments, and a Chief Executive Officer who is responsible for the day to day administration of the Corporation. Staff are non-APS and are employed under the Clean Energy Finance Corporation Act 2012. The Board reports to Parliament through its responsible Ministers.

The Clean Energy Finance Corporation’s investment objectives are to catalyse and leverage an increased flow of funds for the commercialisation and deployment of Australian based renewable energy, energy efficiency and low-emissions technologies.

The Clean Energy Finance Corporation seeks diversity of technology and sector exposure. All sectors of the economy can undertake investments which contribute to emissions reduction and projects are drawn widely. The Corporation’s portfolio is expected to evolve over time, noting the Clean Energy Finance Corporation Act 2012 requirement that on or after 1 July 2018, at least half of the funds invested must be invested in renewable energy.

The Clean Energy Finance Corporation applies commercial rigour to investment decisions and seeks to develop a portfolio across the spectrum of clean energy technologies that, in aggregate, must have an acceptable

144

but not excessive level of risk relative to the sector. The Corporation applies a commercial filter when making its investment decisions, focussing on projects and technologies at the later stages of development. The filter is not as stringent as the private sector equivalent, as the Corporation has a public policy purpose and values any positive externalities being generated. The Corporation considers the positive externalities and public policy outcomes when making investment decisions and when determining the extent of any concessionality to be provided for an investment.

In the Investment Mandate 2016 (No.2) the responsible Ministers have directed the Board to target an average return of at least the five–year Australian Government bond rate, +3 to +4 per cent per annum as the benchmark return of the core portfolio and the five–year Australian Government bond rate, +1 per cent per annum as the benchmark return of the Clean Energy Innovation Fund portfolio. Performance against these benchmarks is measured before operating expenses. The Portfolio benchmark returns are medium-term targets and expected to be earned across the portfolios and over a period of time. In targeting these benchmark returns:

The Australian Government is conscious of the risks inherent in investing in a large portfolio of financial assets. It acknowledges that in practice this will involve some short-term volatility in the Corporation’s returns, including the possibility of losses in some years.

The Corporation undertakes rigorous due diligence and financial modelling analysis along with assessments of other key investment risks, including credit risk, to determine appropriate investment structures, financial covenants and the required legal undertakings for an intended investment, all designed to enhance and protect the Corporation’s position.

In the Investment Mandate 2016 (No.2) the responsible Ministers have also directed the Board to make available up to:

$1 billion of investment finance over 10 years for a Reef Funding Program

$1 billion of investment finance over 10 years for a Sustainable Cities Investment Program

$200 million for debt and equity investment through the Clean Energy Innovation Fund.

The ways in which the Corporation addresses financial barriers include:

• attracting finance to the Australian market to improve the flow and diversification of funds for investment into the sector

145

Clean Energy Finance Corporation Budget Statements

• assisting project proponents as an arranger, helping to develop the business case and introduce the proponents to other financiers to seek transaction close

• building knowledge and capacity within the finance sector by participating in transactions to de-risk the investment, familiarising financiers with new asset types or through reducing their size of exposure

• working with the finance sector to develop and deliver new financial products to the market, tailored to the needs, attributes and emerging delivery models for new technologies, which in turn enables small and mid-sized businesses to access finance for energy productivity enhancing capital investment

• building knowledge and capacity within industry through demonstration and case studies to promote successful models and opportunities in energy productivity and clean energy investment

• providing loans at commercial and concessional rates. Where it is necessary and justified, the Corporation may choose to deploy concessional finance to assist in overcoming financial impediments and facilitate realisation of the project.

146







Table 1.1: Clean Energy Finance Corporation resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual$'000

2017-18 estimate

$'000

Opening balance/cash reserves at 1 July (a, b) 232,778 300,733

Funds from other sources Interest and fees 61,657 84,299

Total funds from other sources 61,657 84,299 Total net resourcing for Clean Energy Finance Corporation 294,435 385,032 2016-17 2017-18Average staffing level (number) 80 101 Prepared on a resourcing (i.e. appropriations available) basis.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) The Corporation is not directly appropriated as it is a corporate Commonwealth entity as

defined under the Public Governance, Performance and Accountability Act 2013.(b) The Corporation does not hold the Special Account itself and therefore does not have a

balance carried forward from earlier years. Under the Clean Energy Finance Corporation Act 2012, the Corporation is able to draw on the cumulative funds available in the Special Account, which are estimated to be $7.979 billion at 1 July 2017.

147


1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Clean Energy Finance Corporation.

148






The most recent corporate plan for the Clean Energy Finance Corporation can be found at: http://www.cleanenergyfinancecorp.com.au/publications/corporate-plan.aspx.

The most recent annual performance statement can be found at: http://annualreport2016.cleanenergyfinancecorp.com.au/performance/annual-performance-statement/.

149

http://annualreport2016.cleanenergyfinancecorp.com.au/performance/annual-performance-statement/

http://annualreport2016.cleanenergyfinancecorp.com.au/performance/annual-performance-statement/

http://www.cleanenergyfinancecorp.com.au/publications/corporate-plan.aspx

http://www.cleanenergyfinancecorp.com.au/publications/corporate-plan.aspx



Outcome 1: Facilitate increased flows of finance into Australia’s clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders.

Linked programs


Programs Program 1.1 – Australian Renewable Energy Agency

Contribution to Outcome 1 made by linked programsThe Clean Energy Innovation Fund is jointly managed by the Corporation and the Australian Renewable Energy Agency, drawing on their complementary experience and expertise. The Clean Energy Innovation Fund has up to $200 million available for debt and equity investments in emerging clean energy projects and businesses, that should allow projects at the later end of the innovation chain to deliver a financial return to taxpayers, in addition to the public good return of improving competitiveness of renewable energy and related technologies.

Department of the Environment and EnergyPrograms

Program 1.1 – Sustainable Management of Natural Resources and the Environment

Program 2.1 – Reducing Australia's Greenhouse Gas Emissions Program 2.3 – Renewable Energy Technology Development Program 4.1 – Energy

Contribution to Outcome 1 made by linked programsThe Department of the Environment and Energy has responsibility for policies that reduce Australia’s greenhouse gas emissions. The Clean Energy Finance Corporation contributes to these programs by facilitating increased flows of finance into the clean energy sector, including through the funding it makes available to the Clean Energy Innovation Fund and Reef Funding Program.

150


Department of the Prime Minister and Cabinet Programs

Program 1.1 – Prime Minister and CabinetContribution to Outcome 1 made by linked programsThe Corporation is working with the Department of the Prime Minister and Cabinet, state and local governments and other stakeholders to support the Government's Smart Cities Plan, by making up to $1.0 billion of investment finance available over 10 years for clean energy projects that improve the productivity and liveability of cities.


Programs Program 1.1 – Improving the outlook for the Great Barrier Reef

Contribution to Outcome 1 made by linked programsThe Clean Energy Finance Corporation is providing a $1.0 billion investment over 10 years for the Reef Funding Program. The Program will deliver financial investment in clean energy projects delivered in the Great Barrier Reef catchment region. In targeting clean energy projects and businesses in the region the Reef Funding Program supports delivery of the Government’s Reef 2050 plan.

151





Outcome 1: Facilitate increased flows of finance into Australia's clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders.

2016-17


2017-18Budget

$'000


$'000


$'000


$'000

Program 1.1: Clean Energy Finance Corporation

Expenses not requiring appropriation in the Budget year (a) 24,048 36,472 39,719 47,007 51,646

Revenues from other independent sources 29,652 39,187 43,628 48,154 52,161


Outcome 1 Totals by appropriation type

Expenses not requiring appropriation in the Budget year (a) 24,048 36,472 39,719 47,007 51,646



2016-17 2017-18

Average staffing level (number) 80 101

(a) Expenses not requiring appropriation in the Budget year are non-cash charges largely in relation to concessional loan charges, write-down and impairment of assets, any losses on disposal of investments and depreciation and amortisation.

152



Outcome 1 – Facilitate increased flows of finance into Australia’s clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders.Program 1.1 – Clean Energy Finance Corporation. The Clean Energy Finance Corporation’s mission is: “To accelerate Australia’s transformation towards a more competitive economy in a carbon constrained world, by acting as a catalyst to increase investment in emissions reduction” through:• investing directly and indirectly, while also attracting private sector investment into clean energy

technologies and projects, and• applying commercial rigour and using financial products and structures to address the barriers inhibiting

private sector investment in the sector.

Delivery The Corporation helps mobilise investment in renewable energy, low emissions and energy efficiency projects and technologies in Australia, as well as into manufacturing businesses and services that produce the required inputs. It uses financial products and structures to address the barriers inhibiting investment at the demonstration, commercialisation and deployment stages of innovation. The Corporation works with private sector financiers and project sponsors, to facilitate and leverage increased flows of finance into the clean energy sector. In undertaking its investment activities, the Corporation must consider the potential effect on other market participants and the efficient operation of the Australian financial and energy markets.The Corporation shares knowledge and expertise with project sponsors, lenders and the broader industry, helping build capacity within the private sector.The Corporation is being directed to focus particular attention on investing debt and equity in: emerging clean energy projects and businesses that involve technologies

that have passed beyond the research and development stages but are not yet established or of sufficient maturity, size or otherwise commercially ready to attract sufficient private sector investment

renewable energy, low emissions and energy efficiency projects and businesses that improve liveability, accessibility and productivity of our Cities while reducing congestion and air pollution

supporting emerging and innovative renewable technologies and energy efficiency, such as large scale solar, storage associated with large and small-scale solar, offshore wind technologies, and energy efficiency technologies for the built environment.

The Corporation can also provide up to $300m per annum of concessionality in relation to loans issued at below market interest rates, and guarantees where appropriate and unavoidable. The Corporation must ensure the total value of guarantees at any time does not exceed 5% of the total amount that has been credited to the Special Account under section 46 of the Act. The Corporation is not a grants making organisation. It seeks to generate positive financial returns and this is expressed in the Investment Mandate as a target portfolio benchmark rate of return. The Corporation therefore makes investments with a commercial approach, based on careful risk assessment and appropriate terms, with an expectation that such investments will be repaid. The Corporation undertakes its investment activity responsibly and manages risk to minimise the likelihood of losses.

153


Program 1.1 – Clean Energy Finance Corporation. The Clean Energy Finance Corporation’s mission is: “To accelerate Australia’s transformation towards a more competitive economy in a carbon constrained world, by acting as a catalyst to increase investment in emissions reduction” through:• investing directly and indirectly, while also attracting private sector investment into clean energy





2016-17 Investment in renewable energy, low emissions and energy efficiency technologies.

Forecast is to exceed the target $800m to $1bn of new contracted investments during the year.

Placement of funds into Australia’s clean energy sector.

Forecast is to exceed the deployment target of $450m.Carbon abatement from committed projects at ‘cost’ to the Corporation of < $0 is in line with target.On target to achieve financial leverage better than 1:1.

Performance against portfolio benchmark return set by the government.

The Corporation has taken all reasonable steps to achieve portfolio benchmark return target of the five–year Australian Government bond rate + 3 to + 4 per cent per annum, however portfolio returns are heavily influenced by the Corporation’s public policy purpose and are currently forecast to be in excess of relevant five–year Australian Government bond rate but less than the target portfolio benchmark return. Operating expenditure before concession and impairment is forecast to be less than the target $31.3m or 4.0% of funds contracted.

Dissemination of information to industry stakeholders and building industry capacity.

Increase in value and diversity of tangible pipeline opportunities is reflected in the above target level of commitments and deployment.The Corporation has participated in significant marketing and communications activity, media reach, conferences, events, symposiums and industry events and made a number of submissions to industry and government inquiries.

154






The Corporation has engaged in positive stakeholder awareness and knowledge including running board meetings followed by stakeholder events in Brisbane, Adelaide, and Melbourne in addition to the usual meetings in Sydney.

2017-18 Investment in renewable energy, low emissions and energy efficiency technologies.

Funds contracted during the year > $900m to $1.1bn


Funds Deployed > $650m.Expected carbon abatement from committed projects at ‘cost’ to the Corporation of < $0.Financial leverage in projects financed >1:1.

Performance against portfolio benchmark return set by the government in the 2016 Investment Mandate No. 2.

Optimise portfolio returns while recognising the Corporation’s public policy purpose, and taking all reasonable steps to achieve portfolio benchmark return targets of the five–year Australian Government bond rate + 3 to + 4 per cent per annum for the core portfolio and the five–year Australian Government bond rate + 1 per cent per annum for the Clean Energy Innovation Fund portfolio.Operating expenditure before concession and impairment < $40m or 4% of funds contracted.

Dissemination of information to industry stakeholders and building industry capacity.

Increase the value and diversity of the investment pipeline.Significant marketing and communications activity, including media outreach and targeted participation in conferences and industry events.Positive stakeholder awareness and knowledge.

155



technologies and project,; and• applying commercial rigour and using financial products and structures to address the barriers inhibiting



2018-19 and beyond As for 2017-18, other than specific measures set out below:

Investment in renewable energy, low emissions and energy efficiency technologies.

Funds contracted during the year > $1bn to $1.2bn


Funds deployed > $650m

Performance against portfolio benchmark return set by the government.

Operating expenditure before concession and impairment < $45m or 4% of funds contracted.

Purposes The Corporation was established by the Clean Energy Finance Corporation Act 2012 with the stated and legislated objective: “…to facilitate increased flows of finance into the clean energy sector.”

156





3.1.1 Differences between entity resourcing and financial statementsThe Corporation incurs significant non-cash expenses and income which give rise to a significant difference between the financial information presented in the budgeted financial statements and the underlying cash impact of its operations.

Table 3.1 Comprehensive income statement (showing net cost of services) includes a reconciliation of the impact of the non-cash income and charges.

3.1.2 Explanatory notes and analysis of budgeted financial statements

Basis of accounting

The financial statements, included in Tables 3.1 to 3.6 have been prepared in accordance with the requirements of the Public Governance, Performance and Accountability Act 2013, the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015, Australian Accounting Standards issued by the Australian Accounting Standards Board and the Department of Finance guidance for the preparation of financial statements. Noting additional disclosure of the reconciliation of the impact of the significant non-cash income and charges is not required by Australian Accounting Standards.

Forward estimates are prepared on the basis of accounting standards currently in force. Adoption of new accounting standards such as AASB16 - Leases and AASB9 – Financial Instruments will impact the measurement and classification of certain assets, liabilities, revenues and expenses in future periods.

The financial report has been prepared on an accrual basis and is prepared in accordance with the historical cost convention.

Notes to the budgeted financial statements

The budget statements and estimated forward years should be read taking into account the following matters:

157


Concession loan discount

The Corporation is in the business of making loans, some of which may be at a discount to the prevailing market equivalent rates or terms. For each investment, the Corporation attempts to maximise its return and provide only the level of discount from market rates/terms that is required to ensure the project proceeds. This may involve the Corporation taking a position that is not generally offered by other market participants (for example, longer term fixed-rate debt or subordinated debt) at rates that may be below those that an equivalent market participant would demand if it were to participate in this market.

The Corporation is required to record a non-cash charge referred to as a concessional loan discount in relation to any such loans and it is a matter of judgment as to the market equivalent rate used to ascertain the extent of the implicit discount attached to the loan.

Concessionality is made available on an individual transaction basis through longer tenor or lower cost of finance or by absorbing additional risk. The Corporation sets terms on a case by case basis, lending at the rate that is commercially reasonable and on the least generous terms possible for the project to proceed (that is, as close to market terms as possible).

Impairment of loans

The Corporation is required to ascertain the extent to which its portfolio of loans is likely to be recoverable. Given the Corporation is in the business of lending and earning a margin it takes credit risk and it is appropriate to provision for expected credit losses. As the Corporation’s portfolio is mainly senior secured debt and secured project finance facilities, and there have been no specific impairments identified to date, a statistical probability of default must be used to determine the level of appropriate provisioning. The forecast impairment charge is a provision determined as reasonable and appropriate when looking at the risks within the Corporation’s current loans and in particular the current environment faced by the borrowers.

Variability in forecasts

The responsible Ministers give guidance to the Board in relation to the performance of the Corporation’s investment function in the form of an Investment Mandate issued under subsection 64(1) of the CEFC Act. The current Investment Mandate, the Clean Energy Finance Corporation Investment Mandate Direction 2016 (No.2), was issued on 11 January 2017 by the Hon Josh Frydenberg MP, Minister for the Environment and Energy, and Senator the Hon Mathias Cormann, Minister for Finance. The Investment Mandate has a direct implication on the likely rate of return that is achievable in the portfolio, the amount of risk that the

158


Corporation will be incurring across its portfolio and the variability of earnings from period to period.

For example, the Clean Energy Innovation Fund will likely result in a greater proportion of equity investments than the Corporation’s existing portfolio. Similarly, the focus on emerging clean energy projects and businesses that involve technologies that have passed beyond the research and development stages, but are not yet established or of sufficient maturity, size or otherwise commercially ready to attract sufficient private sector investment, will expose the Corporation to a greater risk of loss on individual investments and is likely to result in a greater variability in returns between reporting periods. The Australian Government is conscious of the risks inherent in investing in earlier stage technologies and acknowledges that in practice this will involve some short-term volatility in the Corporation’s returns, including the possibility of losses in some years.

In each of the areas of particular notional allocation for deployment: emerging clean energy projects and businesses, clean energy projects that improve the productivity and liveability of

cities, and clean energy projects and businesses that support delivery of the

Government’s Reef 2050 plan,there is likely to be greater variability of earnings and less certainty when forecasting as:

a) it may take longer than anticipated to scale up the portfolios with new investments,

b) the size of individual investments may be smaller than is optimal resulting in a lower net return with higher costs per transaction, and

c) it may require a larger than forecast use of (non-cash) concessionality in order to incentivise a change from “business as usual”.

The budget and forecasts have been prepared on the basis of the best available estimates as well as an assumption of stability in and continuity of the policy environment.

The private sector has been able to refinance certain of the Corporation’s investments once they have been de-risked and the commercial sector is able to confidently invest. Given the current low interest rate environment in particular, there have been a number of the Corporation’s investments that, for example having completed construction, or obtained contractual certainty or operated successfully for a period, are then sufficiently de-

159


risked and able to be financed by the commercial banks. This has resulted in some of the Corporation’s most profitable loans having been given up to the private sector.

160




2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 22,097 29,321 33,536 37,593 41,078 Suppliers 7,555 9,866 10,092 10,561 11,083 Depreciation and amortisation 767 776 829 884 927 Write-down and impairment of assets 3,640 7,896 9,890 15,623 19,219 Losses from asset sales 92 - - - - Concessional loan charges 19,549 27,800 29,000 30,500 31,500


Interest and fees 52,796 72,326 82,153 106,318 136,667 Dividend and other equity distributions 3,263 9,003 9,461 10,310 10,610 Unwind of concessional loan discount 2,356 3,634 5,538 9,792 15,008

Total own-source revenue 58,415 84,963 97,152 126,420 162,285 Total own-source income 58,415 84,963 97,152 126,420 162,285 Net (cost of)/contribution by services 4,715 9,304 13,805 31,259 58,478 Surplus/(deficit) attributable to the Australian Government 4,715 9,304 13,805 31,259 58,478 OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus (3,892) (626) (626) (627) (626)Total other comprehensive income (3,892) (626) (626) (627) (626)Total comprehensive income/(loss) 823 8,678 13,179 30,632 57,852 Total comprehensive income/(loss) attributable to the Australian Government 823 8,678 13,179 30,632 57,852

161



Reconciliation of the impact of significant non-cash income and charges 2016-17


2017-18Budget

$'000


$'000


$'000


$'000

ADD SIGNIFICANT NON-CASH CHARGES Concessional loan charge 19,549 27,800 29,000 30,500 31,500 Provision for asset impairment 3,640 7,896 9,890 15,623 19,219 Total significant non-cash charges 23,189 35,696 38,890 46,123 50,719 LESS SIGNIFICANT NON-CASH REVENUE Unwind of concessional loan charge (2,356) (3,634) (5,538) (9,792) (15,008)Changes in asset revaluation surplus 3,892 626 626 627 626 Total non-cash revenue 1,536 (3,008) (4,912) (9,165) (14,382)Total comprehensive income attributable to the Australian Government after eliminating significant non-cash adjustments 25,548 41,366 47,157 67,590 94,189 Prepared on Australian Accounting Standards basis.

162




2017-18Budget

$'000


$'000


$'000


$'000

ASSETS Financial assets

Cash and cash equivalents 300,733 300,128 302,456 304,302 300,305Advances and loans 1,086,422 1,374,565 1,626,353 1,971,935 2,484,012Available for sale financial assets 749,744 912,833 1,119,935 1,402,705 1,655,022Interest and other receivables 4,300 2,331 2,417 2,417 2,147Other investments 77,232 190,132 277,382 303,132 255,494

Total financial assets 2,218,43

1 2,779,98

9 3,328,543 3,984,491 4,696,98

0 Non-financial assets

Property, plant and equipment 954 1,083 1,189 1,270 1,338Intangibles 324 424 494 544 585Other non-financial assets 562 562 562 562 562

Total non-financial assets 1,84

0 2,06

9 2,245 2,376 2,48

5 Total assets 2,220,271 2,782,058 3,330,788 3,986,867 4,699,465 LIABILITIES Payables

Suppliers 1,533 1,534 1,532 1,532 1,531Unearned income 12,227 14,421 18,912 23,175 26,632Other payables 497 497 497 497 497

Total payables 14,25

7 16,45

2 20,941 25,204 28,66

0 Provisions

Employee provisions 5,403 6,317 7,379 8,563 9,853Provision for impairment on irrevocable undrawn commitments 528 528 528 528 528Provision for restoration 129 129 129 129 129

Total provisions 6,060 6,974 8,036 9,220 10,510 Total liabilities 20,317 23,426 28,977 34,424 39,170 Net assets 2,199,954 2,758,632 3,301,811 3,952,443 4,660,295 EQUITY* Parent entity interest

Contributed equity 2,108,363 2,658,363 3,188,363 3,808,363 4,458,363 Reserves 3,131 2,505 1,879 1,252 626 Retained surplus (accumulated

deficit) 88,460 97,764 111,569 142,828 201,306

Total parent entity interest 2,199,954 2,758,632 3,301,811 3,952,443 4,660,29

5 Total equity 2,199,954 2,758,632 3,301,811 3,952,443 4,660,295 Prepared on Australian Accounting Standards basis.*Equity is the residual interest in assets after the deduction of liabilities.

163



Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward from previous period 88,460 3,131 2,108,363 2,199,954

Adjusted opening balance 88,460 3,131 2,108,363 2,199,954 Comprehensive income

Other comprehensive income - (626) - (626)Surplus/(deficit) for the period 9,304 - - 9,304

Total comprehensive income 9,304 (626) - 8,678 of which:

Attributable to the Australian Government 9,304 (626) - 8,678

Transactions with owners Contributions by owners

Equity injection - - 550,000 550,000 Sub-total transactions with owners - - 550,000 550,000 Estimated closing balance as at 30 June 2018 97,764 2,505 2,658,363 2,758,632 Closing balance attributable to the Australian Government 97,764 2,505 2,658,363 2,758,632


164



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Interest and fees 58,413 75,296 86,224 110,324 140,318 Dividends and other equity distributions 3,244 9,003 9,460 10,310 10,610


Employees 21,921 28,406 32,475 36,409 39,789 Suppliers 7,357 9,866 10,092 10,562 11,083


Loans and advances 79,781 179,612 196,604 192,981 309,148 Sale of investments 51,713 12,622 45,605 93,230 222,265 Other investing activities 284,200 295,098 143,712 150,000 169,400


Purchase of property, plant and equipment and intangibles 515 1,005 1,005 1,015 1,036

Loans and advances 524,020 643,122 475,129 572,888 873,372 Purchase of Investments 606,905 289,837 340,583 404,125 430,458 Other investing activities 248,678 150,000 149,993 150,000 150,000

Total cash used1,380,11

8 1,083,96

4 966,710 1,128,02

8 1,454,86

6 Net cash from/(used by) investing activities (964,424) (596,632)

(580,789) (691,817) (754,053)

FINANCING ACTIVITIES Cash received

Contributed equity 1,000,000 550,000 530,000 620,000 650,000

Total cash received1,000,00

0 550,000 530,000 620,000 650,000 Net cash from/(used by) financing activities 1,000,000 550,000 530,000 620,000 650,000 Net increase/(decrease) in cash held 67,955 (605) 2,328 1,846 (3,997)

Cash and cash equivalents at the beginning of the reporting period 232,778 300,733 300,128 302,456 304,302 Cash and cash equivalents at the end of the reporting period 300,733 300,128 302,456 304,302 300,305 Prepared on Australian Accounting Standards basis.

165



Estimated actual

$'000

2017-18Budget

$'000


$'000


$'000


$'000


Funded internally from departmental resources 515 1,005 1,005 1,015 1,036 TOTAL 515 1,005 1,005 1,015 1,036 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 515 1,005 1,005 1,015 1,036 Total cash used to acquire assets 515 1,005 1,005 1,015 1,036 Prepared on Australian Accounting Standards basis.

166

Clean Energy Finance Corporation Budget StatementsTable 3.6: Statement of departmental asset movements (Budget year 2017-18)


equipment$'000

Computersoftware and

intangibles$'000

Total

$'000

As at 1 July 2017Gross book value 2,578 986 3,564 Accumulated depreciation (1,624) (662) (2,286)

Opening net book balance 954 324 1,278 Capital asset additions


By purchase - other 500 505 1,005 Total additions 500 505 1,005 Other movements Depreciation/amortisation expense (371) (405) (776)Total other movements (371) (405) (776)

As at 30 June 2018Gross book value 3,078 1,491 4,569 Accumulated depreciation/

amortisation and impairment (1,995) (1,067) (3,062)Closing net book balance 1,083 424 1,507 Prepared on Australian Accounting Standards basis.

168

CLEAN ENERGY REGULATOR


170





172




The Clean Energy Regulator is a Non-corporate Commonwealth Entity established under the Clean Energy Regulator Act 2011. The Clean Energy Regulator is responsible for the Outcome:

Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

The following schemes administered by the Clean Energy Regulator work together to provide economic incentives, backed up by robust data, to reduce greenhouse gas emissions and increase the use of renewable energy to achieve the agency’s purpose of ‘accelerating carbon abatement for Australia.’ In administering its schemes, the Clean Energy Regulator is actively supporting the Australian Government’s commitment to addressing climate change while maintaining energy security and affordability.

The Emissions Reduction Fund, established under the Carbon Credits (Carbon Farming Initiative) Act 2011, provides incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. The safeguard mechanism ensures that emissions reductions purchased by the Government are not offset by significant increases in emissions above business-as-usual levels elsewhere in the economy.

The National Greenhouse and Energy Reporting Scheme, established by the National Greenhouse and Energy Reporting Act 2007, is a single national framework for reporting and disseminating company information about greenhouse gas emissions, energy production, energy consumption and other information specified under the legislation.

The Renewable Energy Target, established by the Renewable Energy (Electricity) Act 2000, encourages the additional generation of electricity from renewable sources, reduces emissions of greenhouse gases in the electricity sector and ensures that renewable energy sources are ecologically sustainable.

174

The Australian National Registry of Emissions Units, established by the Australian National Registry of Emissions Units Act 2011, is a secure electronic registry system that tracks the location and ownership of units issued under the Kyoto Protocol and the Emissions Reduction Fund.

The Clean Energy Regulator’s strategies for delivering this outcome and achieving its purpose are to:

Invest in knowing our clients and communicating with them in a way which meets their needs. Use client education and guidance materials to help potential clients understand how to participate in and comply with our schemes. Use targeted enforcements to act as a deterrent to non-compliance. Ensure our activities assist our clients to decide whether to participate in our schemes based on their own assessment of whether they have adequate capacity and capability to meet the requirements and achieve the anticipated results.

Use risk-based and continuous improvement approaches to deploy agency resources to best effect. Maintain and enhance the skills and expertise of our people and encourage innovation.

Build and sustain the Clean Energy Regulator’s reputation and impact through sound stakeholder and client relationships and partnerships with other relevant institutions and regulatory bodies. Promote the value of our assets, the quality of our results, the strength of our capabilities and the importance of our data.

Ensure our regulatory infrastructure is reliable, resilient and able to be reused in response to policy change. Protect the integrity and utility of the core elements of our schemes, including greenhouse and energy data, contracts, units and certificates.

Further information on the Clean Energy Regulator’s objectives, annual priorities and key performance indicators is detailed in the Clean Energy Regulator Corporate Plan on the Regulator’s website at www.cleanenergyregulator.gov.au.

175

Clean Energy Regulator Budget Statements






176


Table 1.1: Clean Energy Regulator resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Departmental Annual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 18,367 16,789 Departmental appropriation (c) 70,974 69,969 Departmental capital budget (d) 1,183 1,167

Annual appropriations - other services - non-operating (e) Prior year appropriations available (b) 1,500 - Equity injection 150 -

Total departmental annual appropriations 92,174 87,925 Total departmental resourcing 92,174 87,925

Administered Annual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 38,233 30 Outcome 1 191,011 218,662

Total administered annual appropriations 229,244 218,692 Total administered special appropriations (f) 14,184 291 Special accounts (f)

Opening balance 77,388 77,388 Non-appropriation receipts 623,000 560,000

Total special account receipts 700,388 637,388 Total administered resourcing 943,816 856,371 Total resourcing for Clean Energy Regulator 1,035,990 944,296 2016-17 2017-18Average staffing level (number) 324 323 Prepared on a resourcing (i.e. appropriations available) basis.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2017-18. (b) Excludes $6.596 million subject to administrative quarantine by Finance or withheld under

section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act)(c) Excludes departmental capital budget (DCB).(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form


(e) Appropriation Bill (No. 2) 2017-18.(f) For further information on special appropriations and special accounts, please refer to Budget

Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

177


1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Clean Energy Regulator.

178






The most recent corporate plan for the Clean Energy Regulator can be found at: www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Corporate-plans.

The most recent annual performance statement can be found at: www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Annual-Reports.

179

http://www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Corporate-plans

http://www.cleanenergyregulator.gov.au/About/Accountability-and-reporting/Corporate-plans



Outcome 1: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

Linked programs

Department of the Environment and Energy Programs

Program 2.1 – Reducing Australia’s Greenhouse Gas Emissions Program 4.1 – Energy

Contribution to Outcome 1 made by linked programsThe Department of the Environment and Energy has policy responsibility for the Emissions Reduction Fund and the Renewable Energy Target. The Clean Energy Regulator works collaboratively with the Department as the delivery agency and regulator for these schemes. The Department is responsible for energy policy and the Clean Energy Regulator works collaboratively with the Department to understand the impacts of its regulatory activity on the market.

180




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 1: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Program 1.1: Clean Energy RegulatorAdministered expenses

Ordinary annual services(Appropriation Bill No. 1) (a) 191,011 218,662 214,225 228,226 247,854

Special appropriations Public Governance, Performance & Accountability Act 2013 2,935 - - - - Renewable Energy (Electricity) Act 2000 262 291 330 402 442 Clean Energy Act 2011 10,987 - - - -


Departmental appropriation 70,974 69,969 69,811 70,093 70,415 Expenses not requiringappropriation in the Budgetyear (b) 13,714 8,289 6,391 4,266 3,764

Departmental total 84,688 78,258 76,202 74,359 74,179 Total expenses for program 1.1 289,883 297,211 290,757 302,987 322,475 Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services(Appropriation Bill No. 1) (a) 191,011 218,662 214,225 228,226 247,854 Special appropriations 14,184 291 330 402 442


Departmental appropriation 70,974 69,969 69,811 70,093 70,415 Expenses not requiringappropriation in the Budgetyear (b) 13,714 8,289 6,391 4,266 3,764


181



Movement of administered funds between years (c)

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Outcome 1:

Program 1.1: Clean Energy Regulator (88,394) (45,182) (53,487) (40,565) (18,303)

Total movement of administered funds (88,394) (45,182) (53,487) (40,565) (18,303)

2016-17 2017-18Average staffing level (number) 324 323 (a) This includes funding for the Emissions Reduction Fund. Following a number of Emissions

Reduction Fund auctions and the significant volume of contracts that have been entered into, there has been a movement of funds between years to better reflect known and anticipated Emissions Reduction Fund contractual commitments across the forward estimates. This has not change the total appropriation of $2.55 billion. The Clean Energy Regulator is able to commit the full level of remaining uncontracted funds at any time.

(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, make good expenses, and audit fees.

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


182



Outcome 1 – Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.Program 1.1 – Effective and efficient regulation of greenhouse and energy reporting and market based schemes that contribute to a reduction in Australia’s net greenhouse gas emissions and promote investment in renewable energy.

Delivery The Clean Energy Regulator delivers Program 1.1 by: administering our schemes including the Emissions Reduction Fund, the

Renewable Energy Target and the National Greenhouse and Energy Reporting Scheme

collecting, analysing, assessing and publishing emissions and energy data, to inform government policy and the Australian public, and support Australia’s emissions and energy data needs including data and registries to meet international reporting commitments

operating the Australian National Registry of Emissions Units and the Renewable Energy Certificate Registry for market participants, and manage the Emissions and Energy Reporting System

monitoring, facilitating and enforcing compliance by its clients for the schemes it administers

issuing Australian carbon credit units to organisations and individuals for approved projects that reduce greenhouse gas emissions

conducting auctions and managing contracts accrediting greenhouse and energy auditors to undertake audit activities

under its schemes working with other Commonwealth, state and territory law enforcement and

regulatory bodies providing education and information to current and potential scheme

participants on the schemes it administers and how they work.



2016-17 Proportion of contracted abatement delivered.

Expected achievement against criterion:The delivery of abatement contracted through the Emissions Reduction Fund results in emissions reductions and contributes to meeting Australia’s emissions reduction targets.

On track.

Against a target of: ≥ 80% of contracted abatement is delivered on time.

183


Program 1.1 – Effective and efficient regulation of greenhouse and energy reporting and market based schemes that contribute to a reduction in Australia’s net greenhouse gas emissions and promote investment in renewable energy.


Compliance levels by regulated and liable entities.Expected achievement against criterion:Regulated entities comply with the National Greenhouse and Energy Reporting Scheme by reporting emissions and energy data which underpins the reduction of net greenhouse gas emissions and supports Australia’s emissions and energy data needs.Liable entities support achieving the Renewable Energy Target through compliance with their obligations by surrendering renewable energy certificates, which represent the generation of renewable energy.

On track.Against a target of: ≥ 95% of regulated entities are materially compliant with their statutory obligations.

2017-18 Proportion of contracted abatement delivered. ≥ 80% of contracted abatement is delivered on time.

Compliance levels by regulated entities. ≥ 95% of regulated entities are materially compliant with their statutory obligations.


As for 2017–18. As for 2017–18.

Purposes Accelerating carbon abatement for Australia.

(a) Performance criteria for Outcome 1 are derived from the key performance indicators identified in the Clean Energy Regulator Corporate Plan 2016–20.

184





3.1.1 Differences between entity resourcing and financial statementsThe Clean Energy Regulator has no significant differences between the resource information presented in the Budget Papers and the Portfolio Budget Statements.

3.1.2 Explanatory notes and analysis of budgeted financial statements

The Clean Energy Regulator is budgeting to incur departmental expenses of $78.3 million in 2017-18.

The Clean Energy Regulator is budgeting for a break-even position in 2017-18, excluding non-appropriated expenses relating to depreciation and amortisation.

3.1.3 Movement of Funds

The Clean Energy Regulator received approval for a movement of administered funds related to the Emissions Reduction Fund. The movement of funds was requested to better reflect known and anticipated Emissions Reduction Fund contractual commitments across the forward estimates. The movement of administered funds has not changed the total appropriation of $2.55 billion or the ability of the Clean Energy Regulator to commit remaining uncontracted funds at any time.

185


3.2 Budgeted financial statements tables


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 39,818 40,217 40,671 41,104 41,542 Suppliers 31,567 30,156 29,544 29,393 29,277 Depreciation and amortisation 13,249 7,824 5,926 3,801 3,299 Other expenses 54 61 61 61 61

Total expenses 84,688 78,258 76,202 74,359 74,179 LESS:OWN-SOURCE INCOMEGains

Other 465 465 465 465 465 Total gains 465 465 465 465 465 Total own-source income 465 465 465 465 465 Net (cost of)/contribution by services (84,223) (77,793) (75,737) (73,894) (73,714)

Revenue from Government 70,974 69,969 69,811 70,093 70,415 Surplus/(deficit) (13,249) (7,824) (5,926) (3,801) (3,299)Total comprehensive income/(loss) (13,249) (7,824) (5,926) (3,801) (3,299) Note: Impact of net cash appropriation arrangements

2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations - - - - -

less depreciation/amortisationexpenses previously funded throughrevenue appropriations (a) 13,249 7,824 5,926 3,801 3,299

Total comprehensive income/(loss) - as per the statement of comprehensive income (13,249) (7,824) (5,926) (3,801) (3,299)Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where

Appropriation Bill 1 revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No.1) equity appropriations. For information regarding Departmental Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.

186



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 282 282 282 282 282Trade and other receivables 23,952 24,589 25,244 25,244 25,244


Land and buildings 3,000 2,400 1,800 1,200 600Property, plant and equipment 1,423 1,203 993 885 794Intangibles 13,257 7,420 3,464 1,532 90Other non-financial assets 1,130 1,130 1,130 1,130 1,130


Suppliers 4,943 4,936 4,929 4,868 4,807Total payables 4,943 4,936 4,929 4,868 4,807 Provisions

Employee provisions 12,177 12,760 13,361 13,361 13,361Other provisions 1,890 1,951 2,012 2,073 2,134


Contributed equity 85,058 86,225 87,385 88,546 89,712 Reserves 7,078 7,078 7,078 7,078 7,078 Retained surplus (accumulateddeficit) (68,102) (75,926) (81,852) (85,653) (88,952)


187



Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity

$'000

Opening balance as at 1 July 2017Balance carried forward fromprevious period (68,102) 7,078 85,058 24,034

Adjusted opening balance (68,102) 7,078 85,058 24,034 Comprehensive income

Surplus/(deficit) for the period (7,824) - - (7,824)Total comprehensive income (7,824) - - (7,824)Transactions with owners Contributions by owners

Departmental capital budget (DCB) - - 1,167 1,167 Sub-total transactions with owners - - 1,167 1,167 Estimated closing balance as at 30 June 2018 (75,926) 7,078 86,225 17,377 Closing balance attributable to the Australian Government (75,926) 7,078 86,225 17,377


188



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 70,494 69,260 69,156 70,290 70,415 Total cash received 70,494 69,260 69,156 70,290 70,415 Cash used


Total cash used 70,494 69,260 69,156 70,290 70,415 Net cash from/(used by) operating activities - - - - - INVESTING ACTIVITIES Cash used



Contributed equity 2,833 1,167 1,160 1,161 1,166 Total cash received 2,833 1,167 1,160 1,161 1,166 Net cash from/(used by) financing activities 2,833 1,167 1,160 1,161 1,166 Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 282 282 282 282 282

Cash and cash equivalents at the end of the reporting period 282 282 282 282 282 Prepared on Australian Accounting Standards basis.

189


Table 3.5: Departmental capital budget statement (for the period ended 30 June)


$'000

2017-18Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 1,183 1,167 1,160 1,161 1,166 Equity injections - Bill 2 150 - - - -



Funded by capital appropriations (a) 1,650 - - - - Funded by capital appropriationDCB (b) 1,183 1,167 1,160 1,161 1,166


Total purchases 2,833 1,167 1,160 1,161 1,166 Total cash used to acquire assets 2,833 1,167 1,160 1,161 1,166 Prepared on Australian Accounting Standards basis.(a) Includes both current Appropriation Bill (No. 2) and prior Appropriation Act (No. 2)

appropriations.(b) Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).

190



Buildings

$'000


equipment$'000

Computersoftware

andintangibles

$'000

Total

$'000As at 1 July 2017

Gross book value 9,743 2,362 57,976 70,081 Accumulated depreciation/ amortisation and impairment (6,743) (939) (44,719)

(52,401)

Opening net book balance 3,000 1,423 13,257 17,680 Capital asset additions


By purchase - appropriation ordinary annual services (a) - - 1,167 1,167 Total additions - - 1,167 1,167 Other movements Depreciation/amortisation expense (600) (220) (7,004) (7,824)Total other movements (600) (220) (7,004) (7,824)

As at 30 June 2018Gross book value 9,743 2,362 59,143 71,248 Accumulated depreciation/ amortisation and impairment (7,343) (1,159) (51,723)

(60,225)

Closing net book balance 2,400 1,203 7,420 11,023 Prepared on Australian Accounting Standards basis.(a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation

Bill (No.1) 2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

191




$'000

2017-18Budget

$'000


$'000


$'000


$'000

EXPENSES Suppliers 4,079 4,108 4,148 4,219 4,259 Other expenses 201,116 214,845 210,407 224,409 244,037

Total expenses administered on behalf of Government 205,195 218,953 214,555 228,628 248,296 LESS: OWN-SOURCE INCOME Own-source revenue Taxation revenue

Other taxes 143,883 607 664 706 749 Total taxation revenue 143,883 607 664 706 749 Non-taxation revenue

Sale of goods and rendering ofservices 12,436 12,122 12,430 12,862 13,148

Total non-taxation revenue 12,436 12,122 12,430 12,862 13,148 Total own-source revenue administered on behalf of Government 156,319 12,729 13,094 13,568 13,897 Net (cost of)/contribution by services (48,876) (206,224)

(201,461)

(215,060) (234,399)

Total comprehensive income/(loss) (48,876) (206,224)(201,461

)(215,060

) (234,399)Prepared on Australian Accounting Standards basis.

192




$'000

2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 85,416 85,416 85,416 85,416 85,416 Trade and other receivables 5,045 5,045 5,045 5,045 5,045

Total financial assets 90,461 90,461 90,461 90,461 90,461 Total assets administered on behalf of Government 90,461 90,461 90,461 90,461 90,461 LIABILITIES Payables

Suppliers 3,050 3,050 3,050 3,050 3,050 Other payables 111,538 111,538 111,539 111,539 111,539

Total payables 114,588 114,588 114,589 114,589 114,589 Total liabilities administered on behalf of Government 114,588 114,588 114,589 114,589 114,589 Net assets/(liabilities) (24,127) (24,127) (24,128) (24,128) (24,128)Prepared on Australian Accounting Standards basis.

193



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Sales of goods and rendering of services 11,732 12,332 12,632 13,064 13,148 Taxes 144,696 607 664 706 749


Suppliers 4,341 4,399 4,479 4,621 4,259 Other 200,854 214,554 210,075 224,007 244,037

Total cash used 205,195 218,953 214,554 228,628 248,296 Net cash from/(used by) operating activities (48,767) (206,014) (201,258) (214,858) (234,399)FINANCING ACTIVITIES Cash received

Special Account 623,000 560,000 560,000 560,000 560,000 Total cash received 623,000 560,000 560,000 560,000 560,000 Cash used

Special Account 623,000 560,000 560,000 560,000 560,000 Total cash used 623,000 560,000 560,000 560,000 560,000 Net cash from/(used by) financing activities - - - - - Net increase/(decrease) in cash held (48,767) (206,014) (201,258) (214,858) (234,399)

Cash and cash equivalents atbeginning of reporting period 85,416 85,416 85,416 85,416 85,416

Cash from Official Public Account for: - Appropriations 204,930 218,953 214,554 228,628 248,296

Total cash from Official Public Account 204,930 218,953 214,554 228,628 248,296 Cash to Official Public Account for:

- Appropriations (156,163) (12,939) (13,296) (13,770) (13,897)Total cash to Official Public Account (156,163) (12,939) (13,296) (13,770) (13,897)

Cash and cash equivalents at end of reporting period 85,416 85,416 85,416 85,416 85,416 Prepared on Australian Accounting Standards basis.

194

CLIMATE CHANGE AUTHORITY


196





198




The Climate Change Authority is a Non-corporate Commonwealth Entity and a statutory agency operating under the Climate Change Authority Act 2011. The Authority is responsible for the Outcome:

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

The specific functions of the Authority are set out in the Climate Change Authority Act 2011. These include conducting statutory reviews of climate change policies, special reviews and research about matters relating to climate change.

In 2017-18, the Authority will complete (by 31 December 2017) its second review of the Carbon Credits (Carbon Farming Initiative) Act 2011. The Authority will also begin work on its review of the National Greenhouse and Energy Reporting Act 2007, which is due to be completed by 31 December 2018.

Government policy is that the Climate Change Authority will be wound up within the life of the current Parliament.

200


Table 1.1 shows the total funding from all sources available to the Authority for its operations and to deliver services on behalf of the Government.

The table summarises how resources will be applied by outcome (government strategic policy objectives) and by administered (on behalf of the Government or the public) and departmental classification for the Authority’s operations.

Information in this table is presented on a resourcing (that is, appropriations/cash available) basis, whilst the Budgeted expenses by Outcome tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

201

Climate Change Authority Budget Statements

Table 1.1: Climate Change Authority resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate


Prior year appropriations available 1,000 - Departmental appropriation 2,563 - s 74 retained revenue receipts (b) 662 1,456

Total departmental annual appropriations 4,225 1,456 Total departmental resourcing 4,225 1,456 Total resourcing for Climate Change Authority 4,225 1,456

2016-17 2017-18Average staffing level (number) 9 9 Prepared on a resourcing (i.e. appropriations available) basis.Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2017-18. (b) Estimated retained revenue receipts under section 74 of the Public Governance,

Performance and Accountability Act 2013.

202


1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Climate Change Authority.

203






The most recent corporate plan for the Climate Change Authority can be found at: http://climatechangeauthority.gov.au.

The most recent annual performance statement can be found in the Authority’s annual report for 2015-16 at http://climatechangeauthority.gov.au/about-cca.

204

http://climatechangeauthority.gov.au/about-cca



Outcome 1 – Provide expert advice to the Australian Government on climate change mitigation initiatives, including through conducting regular and specifically commissioned reviews and through undertaking climate change research.

Linked programs

Department of the Environment and Energy Programs

Program 2.1 – Reducing Australia's Greenhouse Gas Emissions Program 4.1 – Energy

Contribution to Outcome 1 made by linked programsThe Climate Change Authority supports the Department of the Environment and Energy in reducing Australia’s greenhouse gas emissions by providing independent climate change mitigation policy advice to the Government, including in relation to the energy sector.

205




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 1: Provide expert advice to the Australian Government on climate change mitigation initiatives, including through conducting regular and specifically commissioned reviews and through undertaking climate change research.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Program 1.1: Reviewing Climate Change Mitigation PoliciesDepartmental expenses

Departmental appropriation 2,563 - - - - s74 Retained revenue receipts (a) 662 1,456 - - - Expenses not requiring appropriation

in the Budget year (b) 304 9 - - - Departmental total 3,529 1,465 - - -

Total expenses for program 1.1 3,529 1,465 - - - Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 2,563 - - - - s74 Retained revenue receipts (a) 662 1,456 - - - Expenses not requiring appropriation

in the Budget year (b) 304 9 - - - Departmental total 3,529 1,465 - - -

Total expenses for Outcome 1 3,529 1,465 - - -

2016-17 2017-18Average staffing level (number) 9 9 (a) Estimated expenses incurred in relation to receipts retained under section 74 of the Public

Governance, Performance and Accountability Act 2013.(b) Expenses not requiring appropriation in the Budget year are made up of depreciation and

amortisation expenses.

206



Outcome 1 – Provide expert advice to the Australian Government on climate change mitigation initiatives, including through conducting regular and specifically commissioned reviews and through undertaking climate change research. Program 1.1 – Reviewing climate change mitigation policiesThe Climate Change Authority’s objective is to provide rigorous, independent and balanced advice to the Minister for the Environment and Energy, to assist the Department and the Australian Parliament with climate change policy, in order to improve the quality of life for all Australians.

Delivery The Authority will conduct regular legislative reviews, and undertake climate change research by:

performing desktop and in-depth research and analysis commissioning external resources to do analytic work where needed conducting meaningful and transparent consultation with experts and

stakeholders including business, industry, environment and other community groups

monitoring developments in climate change policy by reviewing publicly available resources and building networks with expert, local and international organisations.

The Authority secretariat will assist Authority decision making by: providing briefing, draft reports and other supporting documents that are

fit for purpose and of a high quality.



2016–17 Reviews and reports from research conducted by the Authority are high quality, well-received by stakeholders and used in public policy forums and discussions.

Research reports on recommendations on further work resulting from the Special Review into climate change policies and the second review of the Carbon Farming Initiative Act 2011 are of high quality, well-received by stakeholders and used in public policy forums and discussions.Forecast: On track

Public consultation processes are transparent, accessible and are highly regarded by stakeholders. The Authority’s decision-making in conducting and completing reviews is independent and is perceived as independent by stakeholders.

Stakeholders express the view that consultation has been meaningful and transparent.Forecast: On track

Economic modelling, submissions and review reports are accessible on the Authority’s website.Forecast: On track

207


Program 1.1 – Reviewing climate change mitigation policiesThe Climate Change Authority’s objective is to provide rigorous, independent and balanced advice to the Minister for the Environment and Energy, to assist the Department and the Australian Parliament with climate change policy, in order to improve the quality of life for all Australians.


2017–18 Legislative reviews and research reports conducted by the Authority are timely, high quality, well-received by stakeholders, and inform or influence public policy forums and discussions.

Statutory deadlines for legislative reviews are met.Stakeholders express the view that reports are of high quality and influential.

Public consultation processes are transparent, accessible and facilitate meaningful engagement with stakeholders.

Stakeholders express the view that consultation has been meaningful and transparent.Issues papers, public submissions research reports and review reports are accessible on the Authority’s website.

The Authority secretariat’s work supports effective decision making by the Authority.

Authority members express satisfaction with the work of the secretariat.


As for 2017–18 As for 2017–18

Purposes (a) The Climate Change Authority’s objective is to provide rigorous, independent and balanced advice to the Minister for the Environment and Energy and the Australian Parliament on climate change policy, in order to improve the quality of life for all Australians.

The Authority will do this by conducting regular and specifically commissioned reviews, and undertaking climate change research published as issues papers, research and review reports.

(a) Refers to updated purposes that will be reflected in the 2017-18 Corporate Plan.

208





3.1.1 Explanatory notes and analysis of budgeted financial statementsThe financial statements reflect the Climate Change Authority’s operations to 30 June 2018, which include research reports on further work recommended by the Climate Change Authority’s special review into climate goals and policies, and initial work on the Carbon Farming Initiative legislative review.

209





$'000

2017-18Budget

$'000

2018-19 Forward estimat

e$'000


$'000


$'000

EXPENSES Employee benefits 2,781 977 - - - Suppliers 444 479 - - - Depreciation and amortisation 304 9 - - -

Total expenses 3,529 1,465 - - - LESS: OWN-SOURCE INCOME Own-source revenue

Other 662 1,456 - - - Total own-source revenue 662 1,456 - - - Total own-source income 662 1,456 - - - Net cost of services (2,867) (9) - - -

Revenue from Government 2,563 - - - - Surplus/(deficit) attributable to the Australian Government (304) (9) - - - Total comprehensive income/(loss) (304) (9) - - - Total comprehensive income/(loss) attributable to the Australian Government (304) (9) - - -


2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000

Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations - - - - -

less depreciation/amortisationexpenses previously funded throughrevenue appropriations (a) 304 9 - - -

Total comprehensive income/(loss) - as per the statement of comprehensive income (304) (9) - - - Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where

Appropriation Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity.

210



Estimated actual

$'000

2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 271 - - - - Trade and other receivables 1,022 - - - -

Total financial assets 1,293 - - - - Non-financial assets

Land and buildings 9 - - - - Total non-financial assets 9 - - - -

Total assets 1,30

2 - - - - LIABILITIES Payables

Suppliers 125 - - - - Total payables 125 - - - - Provisions

Employee provisions 521 - - - - Other provisions 120 - - - -

Total provisions 641 - - - - Total liabilities 766 - - - -

Net assets 53

6 - - - - EQUITY* Parent entity interest

Retained surplus (accumulated deficit) 536 - - - -

Total parent entity interest 536 - - - - Total equity 536 - - - - Prepared on Australian Accounting Standards basis.*Equity is the residual interest in assets after the deduction of liabilities.

211



Retained earnings

$'000

Total equity


Balance carried forward from previous period 536 536 Adjusted opening balance 536 536 Comprehensive income

Surplus/(deficit) for the period (9) (9)Total comprehensive income (9) (9)

of which: Attributable to the Australian Government (9) (9)

Transactions with owners Distributions to owners

Returns of capital:Distribution of equity (527) (527)

Sub-total transactions with owners (527) (527)Estimated closing balance as at 30 June 2018 - - Closing balance attributable to the Australian Government - -


212




$'000

2017-18Budget

$'000


$'000


$'000


$'000


Appropriations 2,563 1,000 - - - Net GST received - 22 - - - Other 662 1,456 - - -

Total cash received 3,225 2,478 - - - Cash used

Employees 2,781 1,498 - - - Suppliers 444 604 - - - Cash transferred to OPA - 647 - - -

Total cash used 3,225 2,749 - - - Net cash used by operating

activities - (271) - - - Net increase/(decrease) in cash

held - (271) - - - Cash and cash equivalents at the

beginning of the reporting period 271 271 - - - Cash and cash equivalents at the

end of the reporting period 271 - - - - Prepared on Australian Accounting Standards basis.

213



Buildings

$'000

Other property, plant and

equipment$'000

Computer software

$'000

Total

$'000As at 1 July 2017

Gross book value 1,224 55 113 1,392 Accumulated depreciation/

amortisation and impairment (1,215) (55) (113) (1,383)Opening net book balance 9 - - 9

Other movements Depreciation/amortisation expense (9) - - (9)Total other movements (9) - - (9)

As at 30 June 2018Gross book value 1,224 55 113 1,392 Accumulated depreciation/

amortisation and impairment (1,224) (55) (113) (1,392)Closing net book balance - - - -


214

DIRECTOR OF NATIONAL PARKS


216





218




The Director of National Parks is a Corporate Commonwealth Entity, operating under the Environment Protection and Biodiversity Conservation Act 1999 to administer and manage Commonwealth reserves (national parks, botanic gardens, marine and terrestrial reserves). These reserves include:

Booderee, Kakadu and Uluru-Kata Tjuta National Parks, which are each jointly managed with their Aboriginal Traditional Owners. Kakadu and Uluru-Kata Tjuta National Parks are World Heritage listed

national parks in the Australian territories of Norfolk, Christmas and Cocos (Keeling) Islands

the Australian National Botanic Gardens, which is a major national institution for the study of Australian plants

the 59 marine reserves in the South East, South West, North West, North and Temperate East marine regions and the Coral Sea which comprise the Commonwealth waters component of the National Representative System of Marine Protected Areas.

The Director of National Parks’ goals and objectives are to deliver:

resilient places and ecosystems: to protect and conserve the natural and cultural values of Commonwealth reserves

multiple benefits to traditional owners: to support the aspirations of traditional owners in managing their land and sea country

amazing destinations: to offer world class natural and cultural experiences, enhancing Australia’s visitor economy.

To deliver these priorities within the Government’s fiscal strategy, the Director of National Parks will continue to look to diversify and increase external revenue and partnerships, seek further improvements in the efficient use of our resources and continue to invest in the skills and capabilities of our staff.

Diagram 1: Location of Commonwealth Parks and Reserves

220

221

Director of National Parks Budget Statements






222


Table 1.1: Director of National Parks resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual$'000

2017-18 estimate

$'000Opening balance/cash reserves at 1 July 46,564 46,564 Funds from Government Annual appropriations - other services (a)

Equity injection – transferred by Portfolio Department 619 376 Total annual appropriations 619 376 Amounts received from related entities

Amounts from Portfolio Department (b) 42,829 46,548 Total amounts received from related entities 42,829 46,548 Total funds from Government 43,448 46,924 Funds from other sources

Interest 1,291 1,200 Sale of goods and services 25,840 23,252 Other 653 926

Total funds from other sources 27,784 25,378 Total net resourcing for Director of National Parks 117,796 118,866 2016-17 2017-18Average staffing level (number) 321 326 Prepared on a resourcing (i.e. appropriations available) basis.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 2) 2017-18.(b) Funding provided by the Portfolio Department that is not specified within the Annual

Appropriation Bills as a payment to the Director of National Parks.

223


1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Director of National Parks.

224


Figure 3: Changes to the outcome and program structures since the last portfolio statement

NewOutcome 1

Management of Commonwealth reserves as outstanding natural places that enhance Australia's well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

Description of change: Previously reported in 2016-17 Portfolio Additional Estimates Statements as Outcome 1.

Old statement:

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

225






The most recent corporate plan for the Director of National Parks can be found at: http://www.environment.gov.au/resource/corporate-plan-2016-20-director-national-parks.

The most recent annual performance statement can be found at: http://www.environment.gov.au/resource/annual-report-2015-16-director-national-parks.

226



Outcome 1: Management of Commonwealth reserves as outstanding natural places that enhance Australia’s well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

Linked programs

Department of the Environment and EnergyPrograms

Program 1.1 – Sustainable Management of Natural Resources and the Environment

Program 1.2 – Environmental Information and Research Program 1.4 – Conservation of Australia’s Heritage and

EnvironmentContribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and Director of National Parks work together through engagement on policy direction, heritage management and species conservation within Commonwealth-managed marine and terrestrial reserves.

Great Barrier Reef Marine Park Authority Programs

Program 1.1 – Improving the Outlook for the Great Barrier Reef Contribution to Outcome 1 made by linked programsThe Coral Sea Commonwealth Marine Reserve managed by the Director of National Parks adjoins the Great Barrier Reef Marine Park and provides complementary protection for ecosystems and biodiversity in the region.

227




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 1: Management of Commonwealth reserves as outstanding natural places that enhance Australia's well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Program 1.1: Parks and ReservesRevenue from Government

Payment from related entities 42,829 46,548 47,397 45,802 44,129 Expenses not requiring appropriation

in the Budget year (a) 5,269 4,262 3,067 2,698 1,071


Total expenses for Program 1.1 80,016 80,308 79,063 77,222 73,943 Outcome 1 Totals by appropriation typeRevenue from Government

Payment from related entities 42,829 46,548 47,397 45,802 44,129 Expenses not requiring appropriation

in the Budget year (a) 5,269 4,262 3,067 2,698 1,071



2016-17 2017-18Average staffing level (number) 321 326 (a) Expenses not requiring appropriation in the Budget year comprise depreciation and amortisation

expenses.

228



Outcome 1 – Management of Commonwealth reserves as outstanding natural places that enhance Australia’s well-being through the protection and conservation of their natural and cultural values, supporting the aspirations of Aboriginal and Torres Strait Islander people in managing their traditional land and sea country, and offering world class natural and cultural visitor experiences.Program 1.1 – Parks and Reserves: healthy and resilient parks, gardens and marine reserves, protecting nature and culture and valued by the community now and into the future.

Delivery With traditional owners and stakeholders, develop and implement management plans for Commonwealth reserves.



2016–17 Populations of threatened and significant species are increasing.

On track - forecast increase in populations of prioritised threatened and significant species.

Populations of priority invasive species are reduced.

On track - forecast decrease in size of populations of prioritised invasive species.

Increase in numbers of Indigenous staff and/or contractors directly or indirectly providing park services.

On track - forecast increase in numbers of Indigenous staff, with value of services provided by Indigenous providers steady.

Maintain or improve the level of visitor satisfaction and number of visitors.

On track - forecast to maintain high levels of visitor satisfaction.

Forecast to exceed 5 per cent increase in visitor numbers.

Enhance level of active management of marine reserves and engagement of users and stakeholders.

Not achieved - new management plans for Commonwealth marine reserves forecast to be in effect and implemented in the next financial year.

Increase the knowledge base for long term adaptive management of the marine reserves.

On track - forecast increase in the number of marine reserves long-term monitoring sites.

2017–18 Populations of threatened and significant species are increasing.

Increase in populations of prioritised threatened and significant species.

Populations of priority invasive species are reduced.

Decrease in size of populations of prioritised invasive species.

229


Program 1.1 – Parks and Reserves: healthy and resilient parks, gardens and marine reserves, protecting nature and culture and valued by the community now and into the future.


Increase in numbers of Indigenous staff and/or contractors directly or indirectly providing park services.

Increase in numbers of Indigenous staff.

Increase in value of services provided by Indigenous providers.

Maintain or improve the level of visitor satisfaction and number of visitors.

Maintain or improve levels of visitor satisfaction.

5 per cent increase in visitor numbers.

Enhance level of active management of marine reserves and engagement of users and stakeholders.

New management plans for Commonwealth marine reserves forecast to be in effect and implemented.

Increase the knowledge base for long term adaptive management of the marine reserves.

Increase in the number of marine reserves long-term monitoring sites.


As for 2017–18 As for 2017–18

Purposes (a) Resilient places and ecosystems: to protect and conserve the natural and cultural values of Commonwealth reserves

Multiple benefits to traditional owners: to support the aspirations of traditional owners in managing their land and sea country

Amazing destinations: to offer world class natural and cultural experiences, enhancing Australia’s visitor economy


230





3.1.1 Explanatory notes and analysis of budgeted financial statementsEstimates for the Director of National Parks have increased primarily as a result of the measure supporting the Commonwealth Marine Reserves network.

Changes over the forward estimates for sale of goods and services represent movements in delivery of Memorandum of Understanding activities, in particular and Bush Blitz II reducing its program expeditions in 2017-18.

Other gains of $4.12 million relate to the estimate of the cost of corporate services provided by the Department of the Environment and Energy free of charge under a Service Delivery Agreement with the Director of National Parks.

The Director of National Parks received approval from the Minister for Finance for an operating loss of $1.1 million in 2020-21 for depreciation of the entity’s asset base.

231



Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2016-17


2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 34,802 33,356 32,045 30,535 29,870 Suppliers 31,176 33,974 35,236 35,273 34,287 Grants 54 - - - - Depreciation and amortisation 13,984 12,977 11,782 11,413 9,786 Other expenses - 1 - 1 -


Sale of goods and rendering of services 25,840 23,252 22,376 22,490 22,507 Interest 1,291 1,200 1,200 1,200 1,200 Other 653 926 903 912 916

Total own-source revenue 27,784 25,378 24,479 24,602 24,623 Gains

Sale of assets 14 - - - - Other 4,120 4,120 4,120 4,120 4,120

Total gains 4,134 4,120 4,120 4,120 4,120 Total own-source income 31,918 29,498 28,599 28,722 28,743 Net (cost of)/contribution by services (48,098) (50,810) (50,464) (48,500) (45,200)

Revenue from Government 42,829 46,548 47,397 45,802 44,129 Surplus/(deficit) attributable to the Australian Government (5,269) (4,262) (3,067) (2,698) (1,071)Total comprehensive income/(loss) (5,269) (4,262) (3,067) (2,698) (1,071)Total comprehensive income/(loss) attributable to the Australian Government (5,269) (4,262) (3,067) (2,698) (1,071)Prepared on Australian Accounting Standards basis.

232




2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 20,442 20,442 20,442 20,442 20,442Trade and other receivables 1,527 1,527 1,527 1,527 1,527Other investments 26,122 26,122 26,122 26,122 26,122Other financial assets 211 211 211 211 211


Land and buildings 65,434 63,814 63,000 62,190 61,846Property, plant and equipment 145,931 143,665 141,593 140,060 139,333Intangibles 815 815 815 815 815Other non-financial assets 552 552 552 552 552


Suppliers 2,796 2,796 2,796 2,796 2,796Other payables 4,334 4,334 4,334 4,334 4,334


Employee provisions 8,433 8,433 8,433 8,433 8,433Other provisions 31 31 31 31 31


Contributed equity 37,064 37,440 37,621 37,976 37,976 Reserves 172,562 172,562 172,562 172,562 172,562 Retained surplus (accumulated deficit) 35,814 31,552 28,485 25,787 24,716


233



Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward fromprevious period 35,814 172,562 37,064 245,440

Adjusted opening balance 35,814 172,562 37,064 245,440 Comprehensive income

Surplus/(deficit) for the period (4,262) - - (4,262)Total comprehensive income (4,262) - - (4,262)

of which: Attributable to the AustralianGovernment (4,262) - - (4,262)


Equity injection - transferred by Portfolio Department - - 376 376

Sub-total transactions with owners - - 376 376 Estimated closing balance as at 30 June 2018 31,552 172,562 37,440 241,554 Closing balance attributable to the Australian Government 31,552 172,562 37,440 241,554


234



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Receipts from Government 43,085 46,548 47,396 45,802 44,129 Sale of goods and rendering of services 25,840 23,252 22,376 22,490 22,507 Interest 1,291 1,200 1,200 1,200 1,200 Other 653 926 903 912 916


Employees 35,058 33,356 32,044 30,535 29,870 Suppliers 27,057 29,854 31,116 31,153 30,167 Other 53 1 - 1 -


Proceeds from sales of property, plant and equipment 14 - - - -

Total cash received 14 - - - - Cash used



Equity injection - transferred byPortfolio Department 619 376 181 355 -

Total cash received 619 376 181 355 - Net cash from/(used by) financing activities 619 376 181 355 - Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 20,442 20,442 20,442 20,442 20,442


235



Estimated actual

$'000

2017-18Budget

$'000


$'000


$'000



Equity injection - transferred by Portfolio Department 619 376 181 355 -

Total new capital appropriations 619 376 181 355 - Provided for:

Purchase of non-financial assets 619 376 181 355 - Total items 619 376 181 355 - PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 619 376 181 355 - Funded internally from departmental resources (b) 8,715 8,715 8,715 8,715 8,715

TOTAL 9,334 9,091 8,896 9,070 8,715 Prepared on Australian Accounting Standards basis.(a) Includes current Appropriation Bill (No.2) appropriations.(b) Includes the following sources of funding:

- current Appropriation Bill (No. 1) and prior year Act (No. 1) appropriations;- donations and contributions;- internally developed assets;- proceeds from the sale of assets.

236



Land

$'000

Buildings

$'000


equipment

$'000

Computersoftware

andintangibles

$'000

Total

$'000As at 1 July 2017

Gross book value 5,690 71,193 178,626 1,094 256,603 Accumulated depreciation/ amortisation and impairment - (11,449) (32,695) (279) (44,423)

Opening net book balance 5,690 59,744 145,931 815 212,180 Capital asset additions


By purchase - appropriation equity (a) - - 376 - 376 By purchase - appropriation ordinary annual services (b) - 2,500 6,215 - 8,715 Total additions - 2,500 6,591 - 9,091 Other movements Depreciation/amortisation expense - (4,120) (8,857) - (12,977)Total other movements - (4,120) (8,857) - (12,977)

As at 30 June 2018Gross book value 5,690 73,693 185,217 1,094 265,694 Accumulated depreciation/

amortisation and impairment - (15,569) (41,552) (279) (57,400)Closing net book balance 5,690 58,124 143,665 815 208,294 Prepared on Australian Accounting Standards basis.(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation

Bill (No. 2) 2017-18.(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1)

2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

237

GREAT BARRIER REEF MARINE PARK AUTHORITY


238





240




The Great Barrier Reef Marine Park Authority is Australia’s principal adviser for the Great Barrier Reef, one of the world’s most valued natural wonders renowned for its stunning beauty and diversity of marine life and habitats. The Great Barrier Reef Marine Park Authority exists to protect the Great Barrier Reef Marine Park and the World Heritage Area for current and future generations. This legislative responsibility is established under the Great Barrier Reef Marine Park Act 1975.

The Great Barrier Reef Marine Park Act 1975 requires the Great Barrier Reef Marine Park Authority to ensure the long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community through the care and development of the Marine Park.

To achieve this primary outcome the Great Barrier Reef Marine Park Authority delivers its work under the Improving the Outlook of the Great Barrier Reef Program with an emphasis on protecting, managing and restoring the Great Barrier Reef’s ecosystem health, biodiversity, and heritage values. The Authority strives to achieve this by:

Providing expert knowledge to influence and advise key decision makers on managing, reducing or avoiding significant threats to the Reef

Regulating and ensuring Marine Park user compliance

Educating and fostering stewardship to enhance protection of the Reef

Enhancing reef resilience through continuous improvement and new initiatives across all aspects of management.

The Great Barrier Reef has experienced two significant extreme weather events during 2017 — its second consecutive year of mass coral bleaching and the category 4 tropical cyclone Debbie which crossed reefs in the Whitsundays region of the Marine Park.

The Great Barrier Reef Marine Park Authority is working with partners and stakeholders to identify and implement actions to increase Reef resilience in response to these major environmental disturbances, while continuing to focus on its essential foundational management tools.

242

These tools include the Field Management Program, which the Authority implements in close collaboration with the Queensland Government, a partnership which is critically important for effectively managing such a large, diverse and complex marine World Heritage Area.

These joint arrangements — which operate across the Commonwealth Marine Park and the Queensland Great Barrier Reef Coast Marine Park — also underpin the operation of a Reef-wide zoning plan and permitting system which regulates where uses may occur, the types of activities allowed and the conditions under which these may proceed.

Under the Field Management Program, the Great Barrier Reef Marine Park Authority is purchasing a second state-of-the art patrol vessel to boost field capacity in the southern region of the Great Barrier Reef, enabling improved policing of the Marine Park, particularly against illegal fishing.

In carrying out its work, the Great Barrier Reef Marine Park Authority maintains strong relationships with Traditional Owners who are the traditional custodians of the Great Barrier Reef with connections to the area dating back more than 60,000 years. The Authority also works with a wide range of agencies, Reef users, stakeholders, and community members with an interest in the long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef.

The Great Barrier Reef Marine Park Authority continues to lead over 70 actions in the Reef 2050 Plan for the Australian Government, including the implementation of the Reef 2050 Integrated Monitoring and Reporting Program. The program will ensure the Plan’s effectiveness is monitored in a scientifically sound and publicly transparent manner. Implementation of this initiative will inform the development of the 2019 Great Barrier Reef Outlook Report.

The Great Barrier Reef Marine Park Authority is continuing to work in conjunction with the Reef and Rainforest Research Centre and the Association of Marine Park Tourism Operators, with funding from the $211.8 million Reef Trust, to protect coral cover at key tourism and high value conservation sites by culling the crown-of-thorns starfish. This critical work is part of the Authority’s work to reduce cumulative impacts and boost Reef resilience.

The Australian Government’s Reef Program is aimed at addressing the threats of declining water quality to the Great Barrier Reef World Heritage Area with the aim of meeting the Authority’s Reef Water Quality Guidelines. The Reef Program also aims to enhance the Reef’s resilience to climate change by minimising other pressures on the Reef. The Authority assists in delivering components of the Reef Program, including:

243

Great Barrier Reef Marine Park Authority Budget Statements

Marine monitoring and reporting of the long-term health of the Reef

Land and sea country partnerships to strengthen communication between local communities, managers and Reef stakeholders and to build a better understanding of Traditional Owner issues relevant to managing the Marine Park, including the sustainable use of traditional marine resources

Stewardship programs including the highly successful Reef Guardian initiative to improve community, local government and industry capacity and facilitate the adoption of environmentally sustainable best practices to achieve environmental outcomes for the Great Barrier Reef.

The Great Barrier Reef Marine Park Authority is updating infrastructure and exhibits associated with its award-winning national education centre for the Great Barrier Reef, Reef HQ Aquarium, in Townsville. The aquarium fosters community and stakeholder participation in actions to address threats to the Reef by ensuring they have a clear understanding of the value of the Great Barrier Reef, the threats to its sustainable future and the actions they can take to protect it.

Climate change remains the most significant threat to the Great Barrier Reef. Global action on climate change, including effective implementation of the Paris Agreement to reduce greenhouse gas emissions, is essential to avoid extreme weather events, such as mass coral bleaching and severe tropical cyclones, becoming a more frequent occurrence.

Other key issues for the Reef are declining water quality, commercial and recreational fishing pressures, crown-of-thorns starfish outbreaks and coastal development.

Our challenge is to maintain the Great Barrier Reef Marine Park Authority’s role as best practice marine park managers while also ensuring stakeholders are aware of the impacts the cumulative pressures from outside of the Authority’s jurisdiction are having on the Great Barrier Reef’s long-term health.

The impact is not just on the Reef ecosystem, it affects the cultural values of Traditional Owners, tourism and fishing industries which rely on a healthy Reef, the communities along the coast who have strong connections with the Reef, as well as the broader Australian and international community who consider it to be ‘our Reef’.

244







245


Table 1.1: Great Barrier Reef Marine Park Authority resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate


Prior year appropriations available 9,969 7,969 Departmental appropriation (b) 20,031 25,019 s 74 retained revenue receipts (c) 20,296 25,825 Departmental capital budget (d) 772 762

Annual appropriations - other services - non-operating (e) Equity injection 467 1,016

Total departmental annual appropriations 51,535 60,591 Total departmental special appropriations (f) 11,000 11,000 Special accounts (f)

Opening balance 1,224 36,224 Appropriation receipts (g) 9,682 13,177 Non-appropriation receipts 43,731 10,000

Total special accounts 54,637 59,401 less departmental appropriations drawn from annual/special appropriations and credited to special accounts (9,682) (13,177)Total departmental resourcing 107,490 117,815 Total resourcing for the Great Barrier Reef Marine Park Authority 107,490 117,815 2016-17 2017-18Average staffing level (number) 210 210 Prepared on a resourcing (i.e. appropriations available) basis.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2017-18. (b) Excludes departmental capital budget (DCB). (c) Estimated retained revenue receipts under section 74 of the Public Governance, Performance

and Accountability Act 2013.(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form


(e) Appropriation Bill (No. 2) 2017-18.(f) Excludes 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM),

Services for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and Trust Moneys accounts (SOETM)). For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

(g) Amounts credited to the special account(s) from Great Barrier Reef Marine Park Authority annual and special appropriations.

246


1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Great Barrier Reef Marine Park Authority.

247






The most recent corporate plan for the Great Barrier Reef Marine Park Authority can be found at: http://elibrary.gbrmpa.gov.au/jspui/handle/11017/3034

The most recent annual performance statement can be found at: http://elibrary.gbrmpa.gov.au/jspui/handle/11017/3059

248

http://elibrary.gbrmpa.gov.au/jspui/handle/11017/3059

http://elibrary.gbrmpa.gov.au/jspui/handle/11017/3034



Outcome 1: The long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community through the care and development of the Marine Park.

Linked programs


Programs Program 1.1 – Sustainable Management of Natural Resources and

the Environment Program 1.4 – Conservation of Australia’s Heritage and

Environment Program 1.5 – Environmental Regulation Program 2.1 – Reducing Australia’s Greenhouse Gas Emissions Program 2.2 – Adapting to Climate Change

Contribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Great Barrier Reef Marine Park Authority work together on heritage management, environment health, species conservation and fisheries management as well as joint implementation of the Reef 2050 Plan to protect and conserve the Great Barrier Reef. Climate Change is the most significant threat to the Great Barrier Reef. The Department of the Environment and Energy is responsible for policy to support an effective global response to climate change and for adapting to climate change.

Clean Energy Finance Corporation Programs

Program 1.1 – Clean Energy Finance Corporation Contribution to Outcome 1 made by linked programsThe Clean Energy Finance Corporation is providing a $1 billion investment over 10 years for the Reef Funding Program. The Program will deliver financial investment in clean energy projects delivered in the Great Barrier Reef catchment region. The Program is targeting clean energy projects and businesses in the region that support delivery of the Government’s Reef 2050 plan.

249


250


Director of National Parks Programs

Program 1.1 – Parks and Reserves: healthy and resilient parks, gardens and marine reserves, protecting nature and culture and valued by the community now and into the future

Contribution to Outcome 1 made by linked programsThe Coral Sea Commonwealth Marine Reserve managed by the Director of National Parks adjoins the Great Barrier Reef Marine Park and provides complementary protection for ecosystems and biodiversity in the region.

251




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 1: The long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community, through the care and development of the Marine Park.

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000Program 1.1: Improving the Outlook for the Great Barrier ReefDepartmental expenses

Departmental appropriation 11,659 16,646 20,806 22,509 22,741 s 74 Retained revenue receipts (a) 19,776 19,425 8,800 5,622 4,927 Special appropriations

Great Barrier Reef Marine Park Act 1975 11,000 11,000 11,000 11,000 11,000

Special accounts Great Barrier Reef Field Management Special Account 16,784 16,784 16,784 16,784 16,784

Expenses not requiring appropriation in the Budget year (b) 3,955 1,955 1,955 1,955 1,955

Departmental total 63,174 65,810 59,345 57,870 57,407 Total expenses for program 1.1 63,174 65,810 59,345 57,870 57,407 Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 11,659 16,646 20,806 22,509 22,741 s74 Retained revenue receipts (a) 19,776 19,425 8,800 5,622 4,927 Special appropriations 11,000 11,000 11,000 11,000 11,000 Special accounts 16,784 16,784 16,784 16,784 16,784 Expenses not requiring appropriation in the Budget year (b) 3,955 1,955 1,955 1,955 1,955


2016-17 2017-18Average staffing level (number) 210 210 (a) Estimated expenses incurred in relation to receipts retained under section 74 of the Public

Governance, Performance and Accountability Act 2013.(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

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

252



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.

Program 1.1 – Improving the outlook for the Great Barrier ReefThis program contributes to the outcome through the implementation of actions which aim to protect, manage and restore the Great Barrier Reef’s ecosystem health, biodiversity and heritage values — ensuring use of the Marine Park is ecologically sustainable and benefits current and future generations.

Delivery Program 1.1 will be delivered by: Providing expert knowledge to influence and advise key decision makers

on managing, reducing or avoiding significant threats to the Reef Regulating, and ensuring Marine Park user compliance Educating and fostering stewardship to enhance protection of the Reef Enhancing reef resilience through continuous improvement and new

initiatives across all aspects of management.



2016-17 Authority decisions and actions are informed by the best available knowledge and information, and contribute to the attainment of outcomes for the Reef’s values.

On track

75% of the Authority’s science needs to inform management decisions and actions are being addressed.

On track

The impacts of human activity on the Great Barrier Reef are reduced through effective environmental regulation.

On track

Action taken on 85% of reported permissions non-compliance related offences.

On track

740 dedicated compliance vessel patrol days funded or partially funded by the Field Management Program are undertaken in the World Heritage Area.

On track

23% of the Marine Park is managed in accordance with an accredited Traditional Use of Marine Resources Agreement or an Indigenous Land Use Agreement.

On track

253




Environmental outcomes for the Great Barrier Reef are improved through the communication and adoption of sustainable best practices.

On track

Increase in the number of participants within Great Barrier Reef Marine Park Authority stewardship programs (e.g. High Standard Tourism, Eye on the Reef, Reef Guardians, Sea Country Indigenous Partnerships).

On track

55% of visitors to the Great Barrier Reef use tourism operators which have been accredited as ‘high standard operators’.

On track

70% of visitors to Reef HQ Aquarium participate in talks and tours that deliver key messages about risks to the Great Barrier Reef.

On track

2017-18 Key threats to the Great Barrier Reef are identified, and either addressed or, where external, acknowledged through the provision of authoritative and trusted advice.

Entities and peak bodies we work with acknowledge the: quality of the Authority’s

advice professionalism and

expertise of Authority staff.

100% of very high or high risks to the Reef are identified in or have effective actions against them identified in the Reef 2050 Plan or other plans and strategies.

The impacts of human activity on the Great Barrier Reef are reduced through effective and efficient regulation and compliance.

Whitsundays Plan of Management finalised and in force.New permit guidelines finalised and existing ones reviewed to improve transparency and consistency in permit decisions.Spatial planning tools identified and priority sites determined for improved protection.

254




24% of the Marine Park coastline is managed in accordance with an accredited Traditional Use of Marine Resources Agreement or Indigenous Land Use Agreement.740 compliance patrol days funded through the joint field management program.New compliance tools are identified, trialled and reviewed for effectiveness to address key risks.

Improved awareness and adoption of sustainable best practices through education and stewardship programs.

Participants of stewardship and education programs, including ReefHQ programs, report: improved awareness of the

Great Barrier Reef’s values and threats

changed practice and behaviour to protect and enhance the Reef’s values.

Enhanced coral reef resilience through identifying and working with partners to implement adaptive management intervention.

Develop and release a Position Statement on potential interventions to enhance Reef resilience.Management intervention options to support resilience are identified and prioritised.A number of new interventions that are prioritised progress to piloting and evaluation.

2018-19 and beyond As for 2017-18 As for 2017-18 with the exception of the Whitsundays Plan of Management and Position Statement on potential interventions targets identified above.

Purposes (a) Our Purpose is to ensure the long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef for all Australians and the international community through the care and development of the Marine Park.


255





3.1.1 Differences between entity resourcing and financial statementsThere are no differences between the resource information presented in the Budget Papers and the Portfolio Budget Statements.

3.1.2 Analysis of budgeted financial statementsChanges in appropriation from 2016-17 to 2017-18 are the result of the funding received at MYEFO in 2016-17.

The operating loss in 2016-17 reflects additional legal costs and depreciation expenses.

256




2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 21,762 21,457 23,140 22,387 23,320 Suppliers 26,061 29,902 21,954 21,232 19,836 Grants 1,110 210 10 10 10 Depreciation and amortisation 1,900 1,900 1,900 1,900 1,900 Payments to Queensland Government for Field Management Program 12,341 12,341 12,341 12,341 12,341


Permit Assessment Fees 340 340 340 340 340 Reef HQ Aquarium 2,630 2,630 2,630 2,630 2,630 Grants received from Government 17,116 16,965 5,820 2,642 1,947 Receipts from Queensland Government for Field Management Program 8,372 8,372 8,372 8,372 8,372 Other 250 6,450 50 50 50

Total own-source revenue 28,708 34,757 17,212 14,034 13,339 Gains

Other 55 55 55 55 55 Total gains 55 55 55 55 55 Total own-source income 28,763 34,812 17,267 14,089 13,394 Net (cost of)/contribution by services (34,411) (30,998) (42,078) (43,781) (44,013)

Revenue from Government 31,031 36,018 40,178 41,881 42,113 Surplus/(deficit) attributable to the Australian Government (3,380) 5,020 (1,900) (1,900) (1,900)Total comprehensive income/(loss) (3,380) 5,020 (1,900) (1,900) (1,900)Total comprehensive income/(loss) attributable to the Australian Government (3,380) 5,020 (1,900) (1,900) (1,900)

257




2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000

Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations (1,480) 6,920 - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 1,900 1,900 1,900 1,900 1,900 Total comprehensive income/(loss) - as per the statement of comprehensive income (3,380) 5,020 (1,900) (1,900) (1,900)Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where

Appropriation Bill (No. 1) revenue for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity appropriations. For information regarding Department Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.

258




2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 489 489 489 489 489 Closing balance of Field Management Special Account 36,224 36,224 36,224 36,224 36,224 Trade and other receivables 60 60 60 60 60 Appropriation receivable 7,969 14,369 14,369 14,369 14,369 GST receivable 353 353 353 353 353 Other financial assets 21 21 21 21 21


Land and buildings 16,329 15,917 15,496 15,020 14,523 Property, plant and equipment 2,420 3,340 4,249 4,932 5,376 Intangibles 2,258 2,148 1,838 1,488 1,168 Inventories 73 73 73 73 73 Other non-financial assets 290 290 290 290 290


Suppliers 4,451 4,451 4,451 4,451 4,451 Other payables 258 258 258 258 258


Employee provisions 6,133 6,133 6,133 6,133 6,133 Provision for remediation of Douglas Shoal (a) 35,000 35,000 35,000 35,000 35,000


Contributed equity 24,384 26,162 28,240 29,997 31,524 Reserves 13,168 13,168 13,168 13,168 13,168 Retained surplus (accumulated deficit) (16,908) (11,888) (13,788) (15,688) (17,588)

Total parent entity interest 20,644 27,442 27,620 27,477 27,104 Total equity 20,644 27,442 27,620 27,477 27,104 Prepared on Australian Accounting Standards basis.*Equity is the residual interest in assets after the deduction of liabilities. (a) Settlement for remediation of Douglas Shoal from Shen Neng 1 ship grounding in 2010. A plan

of expenditure of the settlement funds over future years is in preparation. Held as a Provision under AASB137.

259



Retainedearnings

$'000

Assetrevaluatio

nreserve

$'000


Totalequity

$'000

Opening balance as at 1 July 2017Balance carried forward from previous period (16,908) 13,168 24,384 20,644

Adjusted opening balance (16,908) 13,168 24,384 20,64

4 Comprehensive income

Surplus/(deficit) for the period 5,020 - - 5,020 Total comprehensive income 5,020 - - 5,020

of which:

Attributable to the Australian Government 5,020 - - 5,020


Equity injection - Appropriation - - 1,016 1,016 Departmental capital budget (DCB) - - 762 762

Sub-total transactions with owners - - 1,778 1,778 Estimated closing balance as at 30 June 2018 (11,888) 13,168 26,162 27,442 Closing balance attributable to the Australian Government (11,888) 13,168 26,162 27,442 Prepared on Australian Accounting Standards basis.

260



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 33,031 30,138 40,178 41,881 42,113 Receipts from Government 17,116 16,445 5,820 2,642 1,947 Reef HQ aquarium revenue 2,630 2,630 2,630 2,630 2,630 Permit assessment fees 340 340 340 340 340 Receipts from Queensland Government for Field Management Program 8,372 8,372 8,372 8,372 8,372 GST received 120 120 100 100 100 Litigation settlement to Field

Management Special Account 35,000 - - - - Other 370 6,570 50 50 50


Employees 21,467 21,162 23,140 22,387 23,320 Suppliers 24,626 22,067 20,999 20,277 18,881 Payments to Queensland Government for Field Management Program 12,341 12,341 12,341 12,341 12,341 GST paid 1,620 1,620 1,000 1,000 1,000 Transfer to OPA - 6,400 - - -Grants 1,110 210 10 10 10 Other 295 295 - - -

Total cash used 61,459 64,095 57,490 56,015 55,552 Net cash from/(used by) operating activities 35,520 520 - - - INVESTING ACTIVITIES Cash used



Contributed equity 1,239 1,778 2,078 1,757 1,527 Total cash received 1,239 1,778 2,078 1,757 1,527 Net cash from/(used by) financing activities 1,239 1,778 2,078 1,757 1,527 Net increase/(decrease) in cash held 35,000 - - - -

Cash and cash equivalents at the beginning of the reporting period 489 35,489 35,489 35,489 35,489


261




2017-18Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 772 762 757 757 762 Equity injections - Bill 2 467 1,016 1,321 1,000 765



Funded by capital appropriations (a) 467 1,016 1,321 1,000 765 Funded by capital appropriation - DCB (b) 772 762 757 757 762 Funded internally from departmental resources (c) 520 520 - - -

TOTAL 1,759 2,298 2,078 1,757 1,527 Prepared on Australian Accounting Standards basis.(a) Includes both current Appropriation Bill (No. 2) and prior Act (No. 2/4/6) appropriations.(b) Does not include annual finance lease costs. Include purchases from current and previous years'

Departmental Capital Budgets (DCBs).(c) Includes s 74 retained revenue receipts.

262



Buildings

$'000


equipment$'000

Computersoftware

andintangibles

$'000

Total

$'000As at 1 July 2017

Gross book value 18,054 3,633 5,491 27,178 Accumulated depreciation/ amortisation and impairment (1,725) (1,213) (3,233) (6,171)

Opening net book balance 16,329 2,420 2,258 21,007 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity (a) - 1,016 - 1,016 By purchase - appropriation ordinary annual services (b) 433 549 300 1,282 Total additions 433 1,565 300 2,298 Other movements Depreciation/amortisation expense (845) (645) (410) (1,900)Total other movements (845) (645) (410) (1,900)

As at 30 June 2018Gross book value 18,487 5,198 5,791 29,476 Accumulated depreciation/ amortisation and impairment (2,570) (1,858) (3,643) (8,071)

Closing net book balance 15,917 3,340 2,148 21,405 Prepared on Australian Accounting Standards basis.

(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2017-18, including Collection Development Acquisition Budgets.

(b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2017-18 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

263



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000OWN-SOURCE INCOME Own-source revenue Non-taxation revenue

Environmental Management Charge 11,000 11,000 11,000 11,000 11,000 Infringement Notices 105 80 80 80 80 Rental income 345 345 345 345 345

Total non-taxation revenue 11,450 11,425 11,425 11,425 11,425 Total own-source revenue administered on behalf of Government 11,450 11,425 11,425 11,425 11,425 Total own-sourced income administered on behalf of Government 11,450 11,425 11,425 11,425 11,425 Net (cost of)/contribution by services 11,450 11,425 11,425 11,425 11,425 Total comprehensive income/(loss) 11,450 11,425 11,425 11,425 11,425 Prepared on Australian Accounting Standards basis.

264




$'000

2017-18Budget

$'000


$'000


$'000


$'000


Trade and other receivables 3,057 3,057 3,057 3,057 3,057 Total financial assets 3,057 3,057 3,057 3,057 3,057 Non-financial assets

Land and buildings 3,982 3,982 3,982 3,982 3,982 Total non-financial assets 3,982 3,982 3,982 3,982 3,982 Total assets administered on behalf of Government 7,039 7,039 7,039 7,039 7,039 LIABILITIES Payables

Other payables 3,057 3,057 3,057 3,057 3,057 Total payables 3,057 3,057 3,057 3,057 3,057 Total liabilities administered on behalf of Government 3,057 3,057 3,057 3,057 3,057 Net assets/(liabilities) 3,982 3,982 3,982 3,982 3,982 Prepared on Australian Accounting Standards basis.

265



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Environmental Management Charge 11,000 11,000 11,000 11,000 11,000 Infringement Notices 105 80 80 80 80 Rental Income 345 345 345 345 345

Total cash received 11,450 11,425 11,425 11,425 11,425 Net cash from/(used by) operating activities 11,450 11,425 11,425 11,425 11,425 Net increase/(decrease) in cash held 11,450 11,425 11,425 11,425 11,425

Cash and cash equivalents at beginning of reporting period - - - - -

Cash to Official Public Account for: - Special Appropriations (11,000) (11,000) (11,000) (11,000) (11,000)- Other (450) (425) (425) (425) (425)

Total cash to Official Public Account (11,450) (11,425) (11,425) (11,425) (11,425)Cash and cash equivalents at end of reporting period - - - - - Prepared on Australian Accounting Standards basis.

266


Table 3.10: Statement of administered asset movements (Budget year 2017-18)

Land

$'000

Total

$'000As at 1 July 2017

Gross book value 3,982 3,982 Accumulated depreciation/amortisation and impairment - -

Opening net book balance 3,982 3,982 CAPITAL ASSET ADDITIONSEstimated expenditure on new or

replacement assetsBy purchase - appropriation equity (a) - -

Total additions - - Other movements

Depreciation/amortisation expense - - Total other movements - -

As at 30 June 2018Gross book value 3,982 3,982 Accumulated depreciation/amortisation and impairment - -

Closing net book balance 3,982 3,982 Prepared on Australian Accounting Standards basis.

(a) 'Appropriation equity' refers to Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2017-18, including Collection Development Acquisition Budgets.

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SYDNEY HARBOUR FEDERATION TRUST


268





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The Sydney Harbour Federation Trust manages some of Sydney’s most renowned and prominent foreshore lands on Sydney Harbour. These sites are the former Defence lands at Middle Head–Georges Heights and Chowder Bay in Mosman, the North Head former School of Artillery, Macquarie Lightstation near South Head, Woolwich Dock and Parklands, Cockatoo and Snapper Islands, the former Marine Biological Station at Watsons Bay and the former HMAS Platypus site at Neutral Bay.

The Sydney Harbour Federation Trust is adapting and reusing heritage buildings to bring life and activity to these harbour foreshores and, at the same time, generating revenue for operating and maintaining the sites. Its overarching objective is to transform its sites into precincts and parklands that will enhance the cultural and historical values of the city, whilst conserving the environmental integrity and unique heritage of the sites.

Over its life, the Sydney Harbour Federation Trust’s focus has moved from predominantly community consultation and planning to rehabilitation of lands and buildings, leasing and public programs. As decontamination, conservation, refurbishment and rehabilitation of sites is completed, the emphasis of the Trust’s activities is moving increasingly towards management and maintenance, increasing visitation and enhancing the visitor and tenant experience. The extension of the life of the Trust in 2007 to 2033 has influenced the way the organisation views itself and its operations, with a renewed emphasis on its long-term financial sustainability.

The Sydney Harbour Federation Trust’s objective in 2017–18 and the forward estimates will be to continue to focus on the sustainability of all of our precincts to ensure we leave them preserved for future generations. The Trust will undertake a new interpretive strategy and plan with NSW National Parks for Middle Head, Mosman, to improve public awareness and appreciation of the natural and cultural values of the former Aboriginal and military significant site. It will continue to improve visitor services, amenities and accommodation integrated with event/conferencing use at Cockatoo Island. The Trust will continue to pursue partnerships with both cultural and corporate organisations to improve the Trust’s capacity to implement its charter.

Following decontamination of HMAS Platypus, North Sydney, the Sydney Harbour Federation Trust has completed site planning for the next stage of

272

rehabilitating HMAS Platypus for public use. This stage includes public domain, access and selective building refurbishment works. Detailed design development and construction programming is currently being finalised, with construction being undertaken through 2017-18. Programmed completion is December 2018.

Apart from specific funding measures such as for the HMAS Platypus Stage 1 Rehabilitation, the Sydney Harbour Federation Trust does not receive a Commonwealth appropriation. Accordingly, the Trust is committed to improving existing revenue streams and identifying new revenue sources to enable the Trust to achieve its objects under its enabling legislation.

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Sydney Harbour Federation Trust Budget Statements






274


Table 1.1: Sydney Harbour Federation Trust resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 estimated

actual$'000

2017-18 estimate

$'000Opening balance/cash reserves at 1 July 59,414 54,510 Funds from other sources

Interest 60 60 Sale of goods and services 3,871 3,706 Other 13,903 13,907

Total funds from other sources 17,834 17,673 Total net resourcing for Sydney Harbour Federation Trust 77,248 72,183 2016-17 2017-18Average staffing level (number) 62 63 Prepared on a resourcing (i.e. appropriations available) basis.Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.

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1.3 BUDGET MEASURES

There are no 2017-18 Budget measures relating to the Sydney Harbour Federation Trust.

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The most recent corporate plan for the Sydney Harbour Federation Trust can be found at: http://harbourtrust.gov.au/about

The most recent annual performance statement can be found at: http://www.harbourtrust.gov.au/publication/sydney-harbour-federation-trust-annual-report-2015-2016

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http://www.harbourtrust.gov.au/publication/sydney-harbour-federation-trust-annual-report-2015-2016

http://www.harbourtrust.gov.au/publication/sydney-harbour-federation-trust-annual-report-2015-2016

http://harbourtrust.gov.au/about



Outcome 1: Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.


Programs Program 1.4 - Conservation of Australia’s Heritage and

EnvironmentContribution to Outcome 1 made by linked programsThe Department of the Environment and Energy and the Sydney Harbour Federation Trust work together through engagement on policy direction and site management to preserve the natural and cultural heritage of Sydney Harbour Federation Trust land and maximise public access.

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Outcome 1: Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.

2016-17


2017-18Budget

$'000


$'000


$'000


$'000Program 1.1: Sydney Harbour Federation TrustRevenues from other independent sources 18,318 18,463 19,689 20,719 21,645 Total expenses for Program 1.1 18,318 18,463 19,689 20,719 21,645 Outcome 1 totals by resource typeRevenues from other independent sources 18,318 18,463 19,689 20,719 21,645 Total expenses for Outcome 1 18,318 18,463 19,689 20,719 21,645 2016-17 2017-18Average staffing level (number) 62 63

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Sydney Harbour Federation Trust Budget StatementsTable 2.1.2: Performance criteria for Outcome 1Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It summarises how each program is delivered and where 2017-18 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.Program 1.1 – Sydney Harbour Federation TrustTo manage emblematic lands around Sydney Harbour, preserve their natural and cultural heritage and foster and promote them as places of leisure, enjoyment and interest for all Australians.

Delivery Undertake works and develop programs and facilities to ensure the Trust sites are progressively rehabilitated, conserved and made available for public use and enjoyment.



2016-17 Urban Parklands - to preserve, enhance and promote the rich historical, cultural and natural values embodied in the Harbour Trust’s lands.

Management Plans for Cockatoo Island, Platypus and Middle Head are completed or on target for completion.

Growth and Enterprise – grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Harbour Trust’s sites.

North Head and HMAS Platypus commercial and public use strategy implemented.

Engagement – extend public engagement and affinity with the Trust’s lands.

Strategic Marketing Plan for accommodation and venue hire on target for completion.

Innovation – achieve operational and business efficiencies.

Implementation of Customer Relations Management leasing module to be implemented during 2017-18.

Asset Management – operate, maintain and upgrade the Harbour Trust’s facilities and infrastructure in an efficient and sustainable manner.

Condition based asset survey completed for all infrastructure and parkland assets.Commence rehabilitation of HMAS Platypus.

2017-18 Urban Parklands - to preserve, enhance and promote the rich historical, cultural and natural values embodied in the Harbour Trust’s lands.

5% decrease in Work Health Safety incidents based on 2015-16 levels. Renewal and redevelopment of priority assets as per works program.

Growth & Enterprise – grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Harbour Trust’s sites.

Public/Private investment partner identified. Lease vacancies less than 4%. Leasing and licensing income increasing by 6% based on 2015-16 levels.Platypus commercial and public use strategy being implemented.

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Program 1.1 – Sydney Harbour Federation TrustTo manage emblematic lands around Sydney Harbour, preserve their natural and cultural heritage and foster and promote them as places of leisure, enjoyment and interest for all Australians.


Engagement – extend public engagement and affinity with the Trust’s lands.

Five cultural/heritage partnerships undertaken. Headland Park interpretation plan in place and implementation commenced.Visitation numbers collection methods implemented at North Head and Headland Park.

Innovation – achieve operational and business efficiencies.

Property Management system deployed and integrated.

Asset Management – operate, maintain and upgrade the Harbour Trust’s facilities and infrastructure in an efficient and sustainable manner.

Asset Maintenance Plan in place with updated condition based assessment information for each Trust asset.Platypus stage 1a completed and stage 1b 50% complete.

2018-19 and beyond As for 2017-18 Approved and revised site plans guiding Harbour Trust decision making. Asset Management Plan guides the priority of work projects in line with site plans.

17% increase in total independent revenue from leasing and accommodation business based on 2015-16 levels.Platypus commercial and public use strategy implemented.

Site interpretation completed for major sites. Visitation increase by 2% to 5% based on 2015-16 levels.

Enterprise Resource Planning system implemented. Reduction in regretted staff turnover to < 5%

Majority of capital projects completed as per program and on budget. Platypus stage 1 capital refurbishment completed with site activated.

Purposes To manage emblematic lands around Sydney Harbour, preserve their natural and cultural heritage and foster and promote them as places of leisure, enjoyment and interest for all Australians.

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3.1.1 Explanatory notes and analysis of budgeted financial statementsIncome Statement

The Sydney Harbour Federation Trust has budgeted for a small operating surplus of $0.08 million in 2017–18.

Operating surpluses are maintained in forward years with an increasing trend in profitability as new income streams are realised. The Trust receives no operating funding from the Government, with its final operating appropriation received in 2009–10. The majority of the Trust’s income comes from the leasing of its rehabilitated heritage buildings. Property leasing and licensing revenue is estimated to grow by 6 per cent in 2017–18, with continued growth in the out-years as new leasing opportunities are made available through the capital works program funded by capital renewal reserves and HMAS Platypus capital appropriation. Overall expenditure forecasts for the 2017–18 financial year is $18.5 million, which reflects additional funds allocated for site interpretation projects and the Trust’s planned asset maintenance program. Resources will be focused on the continued preservation and conservation of our aging assets and the capture of asset condition information to assist in forward resource allocation decision making. The Trust will continue to improve tenant and visitor experiences at our sites. Improved agency efficiencies will be realised with the implementation of an integrated property management system, which will enable the redirection of limited resources to the ongoing management and maintenance of Trust sites as capital works are completed.

Balance Sheet

The Trust’s major assets are its lands and buildings, which it holds on behalf of the Commonwealth. In 2017–18, the value of the Trust’s non-financial assets is estimated to increase to $348.0 million as a result of major

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building and infrastructure asset upgrades on the former HMAS Platypus site.

An additional $20.0 million equity injection from Government for the rehabilitation of the former HMAS Platypus site was allocated to the Trust as a new measure at the 2015-16 Additional Estimates. The community planning and consultation stage of these works are now complete with the major construction works due to commence in August 2017 and to be completed in December 2018.

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2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 6,948 7,229 7,338 7,595 7,860 Suppliers 8,681 8,593 9,336 9,884 10,420 Depreciation and amortisation 2,484 2,570 2,930 3,150 3,270 Write-down and impairment of assets 205 71 85 90 95


Sale of goods and rendering of services 2,538 2,268 2,316 2,371 2,429 Fees and fines 360 360 360 360 360 Interest 1,544 1,215 1,031 991 924 Rental income 12,821 13,585 16,116 17,025 18,014 Grants 798 - - - -Other 1,057 1,118 1,119 1,192 1,193

Total own-source revenue 19,118 18,546 20,942 21,939 22,920 Total own-source income 19,118 18,546 20,942 21,939 22,920 Net (cost of)/contribution by services 800 83 1,253 1,220 1,275 Surplus/(deficit) attributable to the Australian Government 800 83 1,253 1,220 1,275 Total comprehensive income/(loss) 800 83 1,253 1,220 1,275 Total comprehensive income/(loss) attributable to the Australian Government 800 83 1,253 1,220 1,275 Prepared on Australian Accounting Standards basis.

284



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 849 1,052 848 677 1,032Trade and other receivables 1,041 759 729 709 729Other investments 53,661 40,061 35,461 33,361 30,761


Land and buildings 274,553 286,456 292,056 295,630 299,136Property, plant and equipment 31,635 32,964 32,582 32,113 31,598Heritage and collections 27,439 27,939 28,364 28,789 29,214Intangibles 249 359 402 340 267Inventories 156 126 156 126 156Other non-financial assets 125 112 97 81 65


Suppliers 825 850 575 584 593Other payables 3,534 3,448 3,294 3,089 2,945


Employee provisions 1,546 1,643 1,686 1,793 1,785Total provisions 1,546 1,643 1,686 1,793 1,785 Total liabilities 5,905 5,941 5,555 5,466 5,323 Net assets 383,803 383,887 385,140 386,360 387,635 EQUITY* Parent entity interest

Contributed equity 277,735 277,735 277,735 277,735 277,735 Reserves 98,617 98,617 98,617 98,617 98,617 Retained surplus (accumulated deficit) 7,451 7,535 8,788 10,008 11,283


285



Retainedearnings

$'000

Assetrevaluatio

nreserve

$'000

Otherreserves

$'000


Totalequity

$'000

Opening balance as at 1 July 2017Balance carried forward from previous period 7,451 90,171 8,446 277,735 383,803 Adjustment for changes in accounting policies 1 - - - 1

Adjusted opening balance 7,452 90,171 8,446 277,735 383,804 Comprehensive income

Surplus/(deficit) for the period 83 - - - 83 Total comprehensive income 83 - - - 83

of which: Attributable to the Australian Government 83 - - - 83

Estimated closing balance as at 30 June 2018 7,535 90,171 8,446 277,735 383,887 Closing balance attributable to the Australian Government 7,535 90,171 8,446 277,735 383,887 Prepared on Australian Accounting Standards basis.

286



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Sale of goods and rendering of services 3,871 3,706 3,752 3,880 3,939 Interest 60 60 60 60 60 Net GST received (40) 10 - - - Other 13,943 13,897 16,188 17,088 18,039




Investments 90,084 79,755 69,571 70,531 70,464 Total cash received 90,084 79,755 69,571 70,531 70,464 Cash used

Purchase of property, plant and equipment and intangibles 7,434 16,370 8,630 6,570 6,630 Investments 84,200 65,000 64,000 67,500 67,000

Total cash used 91,634 81,370 72,630 74,070 73,630 Net cash from/(used by) investing activities (1,550) (1,615) (3,059) (3,539) (3,166)Net increase/(decrease) in cash held (503) 203 (205) (172) 355

Cash and cash equivalents at the beginning of the reporting period 1,353 850 1,053 848 676

Cash and cash equivalents at the end of the reporting period 850 1,053 848 676 1,031 Prepared on Australian Accounting Standards basis.

287



Estimated actual

$'000

2017-18Budget

$'000


$'000


$'000


$'000


Funded internally from departmental resources (a) 7,434 16,370 8,630 6,570 6,630


Total purchases 7,434 16,370 8,630 6,570 6,630 Total cash used to acquire assets 7,434 16,370 8,630 6,570 6,630 Prepared on Australian Accounting Standards basis.(a) Includes the following sources of funding:

- current Appropriation Bill (No. 1) and prior year Act (No. 1/3/5) appropriations (excluding amounts from the Department Capital Budget);- donations and contributions;- gifts;- internally developed assets;- s 74 Retained revenue receipts; and- proceeds from the sale of assets.

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Land

$'000

Buildings

$'000


equipment$'000

Heritageand

cultural

$'000

Computersoftware

andintangibles

$'000

Total

$'000As at 1 July 2017

Gross book value 197,693 79,468 36,315 27,439 665 341,580Accumulated depreciation/ amortisation and impairment - (2,608) (4,681) - (416) (7,705)

Opening net book balance 197,693 76,860 31,634 27,439 249 333,875 Capital asset additions


By purchase - appropriation equity (a) 946 12,306 2,461 500 200 16,413 Total additions 946 12,306 2,461 500 200 16,413 Other movements Depreciation/amortisation expense - (1,349) (1,131) - (90) (2,570)Total other movements - (1,349) (1,131) - (90) (2,570)

As at 30 June 2018Gross book value 198,639 91,774 38,776 27,939 865 357,993 Accumulated depreciation/ amortisation and impairment - (3,957) (5,812) - (506) (10,275)

Closing net book balance 198,639 87,817 32,964 27,939 359 347,718 Prepared on Australian Accounting Standards basis.(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation

Bill (No. 2) 2017-18, including Collection Development Acquisition Budgets.

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Documents

Portfolio Budget Statements · Web viewThe Portfolio contributes to the ongoing effort to understand the impacts of climate change so that responses are based on the best available