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Portfolio Budget Statements 2016-17Budget Related Paper No. 1.7

Environment Portfolio

Budget Initiatives and Explanations of

Appropriations Specified by Outcomesand Programs by Entity

© Commonwealth of Australia 2016

ISBN 978-1-921069-02-4

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GREG HUNTPARLIAMENT HOUSE

CANBERRA 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 2016-17 Budget for the Environment 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

Greg Hunt

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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 not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion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 the Chief Finance Officer, Department of the Environment 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 2016-17 Portfolio Budget 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 Portfolio Budget Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1 and No. 2) 2016-17 (or Appropriation (Parliamentary Departments) Bill (No. 1) 2016-17 for the parliamentary departments). In this sense the Portfolio Budget Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The Portfolio Budget 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 Portfolio Budget Statements where they receive funding (either directly or via portfolio departments) through the annual appropriation acts.

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CONTENTS

Portfolio overview........................................................................................................1Environment portfolio overview......................................................................................3

Entity resources and planned performance..............................................................9Department of the Environment...................................................................................11Australian Renewable Energy Agency.........................................................................83Bureau of Meteorology...............................................................................................103Clean Energy Finance Corporation............................................................................127Clean Energy Regulator.............................................................................................153Climate Change Authority..........................................................................................179Director of National Parks..........................................................................................197Great Barrier Reef Marine Park Authority...................................................................219Sydney Harbour Federation Trust..............................................................................247

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PORTFOLIO OVERVIEW

1

ENVIRONMENT PORTFOLIO OVERVIEW

Minister and portfolio responsibilities

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

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

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:

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 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 about these technologies and the renewable energy industry in Australia.

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

2

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:

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 limited loan guarantees. The Clean Energy Finance Corporation also runs funding programs as directed by the Government through its Investment Mandate. This includes the Clean Energy Innovation Fund which is a joint arrangement between the Clean Energy Finance Corporation and the Australian Renewable Energy Agency.

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.

3

Portfolio overview

Clean Energy Regulator

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

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

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

Climate Change Authority

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

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

Director of National Parks

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

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

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

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

4

Portfolio overview

Great Barrier Reef Marine Park Authority

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

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

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

Sydney Harbour Federation Trust

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

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

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

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

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Portfolio overview

Figure 1: Environment portfolio structure and outcomes

Clean Energy Finance CorporationChief Executive Officer - Mr Oliver Yates

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 MeteorologyActing Director - Ms Vicki Middleton

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 EnvironmentPortfolio Secretary - Dr Gordon de Brouwer

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

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

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

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

Outcome 4: Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge base.

Minister for the Environment The Honourable Greg Hunt MP

Clean Energy RegulatorChief Executive Officer - Ms Chloe Munro

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 - Mr Geoff Bailey

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

Sydney Harbour.

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

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.

6

ENTITY RESOURCES ANDPLANNED PERFORMANCE

Department of the Environment................................................................................11

Australian Renewable Energy Agency.....................................................................83

Bureau of Meteorology............................................................................................103

Clean Energy Finance Corporation........................................................................127

Clean Energy Regulator...........................................................................................153

Climate Change Authority.......................................................................................179

Director of National Parks.......................................................................................197

Great Barrier Reef Marine Park Authority..............................................................219

Sydney Harbour Federation Trust..........................................................................247

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Department of the Environment

Entity resources and planned performance

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DEPARTMENT OF THE ENVIRONMENT

Section 1: Entity overview and resources...............................................................151.1 Strategic direction statement..........................................................................151.2 Entity resource statement..............................................................................201.3 Budget measures...........................................................................................23

Section 2: Outcomes and planned performance.....................................................272.1 Budgeted expenses and performance for Outcome 1....................................282.2 Budgeted expenses and performance for Outcome 2....................................482.3 Budgeted expenses and performance for Outcome 3....................................572.4 Budgeted expenses and performance for Outcome 4....................................61

Section 3: Budgeted financial statements...............................................................703.1 Budgeted financial statements.......................................................................703.2.1 Budgeted financial statements tables............................................................72

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Department of the Environment Budget Statements

DEPARTMENT OF THE ENVIRONMENT

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of the Environment advises on and implements environment policy to support the Government to achieve a healthy environment, strong economy and thriving community now and into the future. The programs and initiatives of the Government work to protect and improve the environment through the four pillars of the Government’s Plan for a Cleaner Environment – Clean Air, Clean Land, Clean Water and Heritage Protection.

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

The Department is leading the implementation of the Australian Government’s Plan for a Cleaner Environment by delivering policies, programs, information and research that enable the conservation, protection and sustainable management of Australia’s natural environment and heritage places.

The Department is implementing the Reef 2050 Long-Term Sustainability Plan and progressing actions to protect and manage the Great Barrier Reef while allowing ecologically sustainable development. From 2016-17 to 2021-22, the Australian Government will allocate additional funding of $101.0 million through the National Landcare Program and further funding of $70.0 million to the Reef Trust. This investment in the Reef will contribute to priority actions across the Reef 2050 Plan including supporting ecosystem health, biodiversity, water quality, community benefits, economic benefits and governance.

The Department is administering the National Landcare Program which supports a long term approach to land management, so communities across Australia can take practical action to improve their local environment and productive landscapes. A further $20.0 million will be directed to the 20 Million Trees program under the National Landcare Program. This will fulfil the Government’s commitment of establishing 20 million native trees on both public and private land in urban, peri-urban and regional Australia. An additional $22.6 million has been committed to the National Landcare

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Program from 2016-17 to 2018-19 to support environment protection and natural resource management and the recovery of Australia’s precious wildlife.

The Green Army program funds activities to restore the landscape and protect threatened species at the local level, encouraging community participation in protecting Australia’s environment. Under the Green Army program, an average of 500 Green Army projects will be delivered, engaging up to 5,000 Australians, each year from 2016-17.

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 declines and supporting species recovery, including through the activities of the Threatened Species Commissioner. Australian Government investment through the National Landcare Program, Green Army program, 20 Million Trees program and the National Environmental Science Program is assisting to deliver the ambitious one, three and five year targets in the strategy.

In the marine environment, the Department will work closely with the Director of National Parks to manage Commonwealth Marine Reserves, after the independent review is released and public consultation on management arrangements commences in the second half of 2016. Funding totalling $56.1 million will be provided to the Department and the Director of National Parks from 2016-17 to 2019-20, including funding for fisheries adjustment assistance, marine user engagement and to enable the Director of National Parks to transition to managing a marine protected estate six times larger than the current estate.

Australia is committed to the protection of whales and dolphins, is working 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 will maintain Australia’s efforts 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 will continue to streamline and focus its environmental regulation of major projects under the Environment Protection and Biodiversity Conservation Act 1999. This will be done to ensure that our regulatory approach is both efficient and effective, and achieves strong environmental outcomes. This involves the Commonwealth setting clear standards, working with states, business and citizens to meet those standards, and ensuring there is risk-based monitoring and reporting against the standards.

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Similarly, the Department will continue to work with states, territories and business to effectively manage environmental health, related to air quality, chemicals management and waste.

The Department will support 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 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 ensure a nationally consistent approach to assessing threatened species and will enable all jurisdictions where a species exists to list it in the same threat category. This will remove ambiguity about the threat status of nationally threatened species, reducing uncertainty for business and community conservation groups.

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.

In 2016-17, the Department will deliver the 2016 Australia State of the Environment report. This report will provide the Minister for the Environment and other decision makers with information to support national environmental policy and management decisions. It will provide the public with access to accurate, up-to-date information and data on the state of the Australian environment.

Through the National Environmental Science Program, the Department will support collaborative co-investment with research partners and deliver publicly available information and research to underpin evidence based environmental management and policy.

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.

The Department is making its environmental data open access, with higher value data such as the Collaborative Australian Protected Areas Database and the National Vegetation Inventory System published directly by the Department or on data.gov.au.

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

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and renewable energy, through developing and implementing a national response to climate change.

The Department’s Office of Climate Change and Renewables Innovation contributes to the Government’s Clean Air policy by implementing policies and programs that reduce Australia’s greenhouse gas emissions and facilitate adaptation to the impacts of climate change.

The centrepiece of the Government’s climate change policy, 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 will ensure the emissions reductions purchased by the Government are not offset by a significant increase in emissions above business as usual elsewhere in the economy. 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 National Carbon Offset Standard supports companies and precincts to go ‘carbon neutral’.

The Department provides information to support activities by government at all levels, business and the community to adapt to the unavoidable impacts of climate change, including through the National Climate Change Adaptation Research Facility and the National Climate Resilience and Adaptation Strategy.

Internationally, the Department contributes to an effective global response to climate change through the negotiation and implementation of obligations under the Kyoto Protocol and Paris Agreement, including estimating and reporting Australia’s emissions and progress towards targets. The Department provides support to other countries for emission measurement and reporting, and rainforest protection.


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 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.

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The Department conducts 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 procurement of the new icebreaker represents the single biggest investment in the history of Australia’s Antarctic program, with additional funding committed by the Government to modernise shore-side infrastructure and equipment at Australia’s Antarctic Stations and in Hobart. The new icebreaker is expected to be commissioned in 2020-21.

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The Icebreaker will be complemented by other major science and operational infrastructure initiatives to be undertaken by the Department, including drilling capability that can reach across the Australian Antarctic Territory and consideration of year-round aviation access to Antarctica and an ice traverse. This capability will build Australia’s scientific leadership in Antarctica, including by involvement in a major scientific research undertaking to retrieve a million-year old ice core.


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 leads Australian Government initiatives to strengthen the science underpinning regulatory decisions on the water-related impacts of coal seam gas and large coal mining development. This includes supporting the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development. The Committee provides advice to Australian governments on the water-related impacts of coal seam gas and large coal mining development proposals. The Department also works to address critical gaps in the scientific understanding of the water-related impacts of coal seam gas and large coal mining development. For example, the Department will continue to deliver targeted bioregional (regional scale) assessments of the impacts of coal seam gas and large coal mining development on water resources in areas across Queensland, New South Wales, Victoria and South Australia with significant coal resource deposits and development pressure.

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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 (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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Table 1.1: Department of the Environment resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 estimate

$'000

Departmental Annual appropriations - ordinary annual services (a)

Prior year appropriations available 79,629 71,436 Departmental appropriation 358,432 338,011 Payments to corporate entities (b, c) 40,470 42,829 s74 retained revenue receipts (d) 41,032 31,204 Departmental capital budget (e) 25,112 24,887

Annual appropriations - other services - non-operating (f) Prior year appropriations available 5,912 1,075 Equity injection 91,891 139,498 Payments to corporate entities (c) 20,000 619

Total departmental annual appropriations 662,478 649,559 Total departmental resourcing 662,478 649,559

Administered Annual appropriations - ordinary annual services (a)

Outcome 1 - Clean Land 443,070 445,473 Outcome 2 - Clean Air 6,589 3,187 Outcome 4 - Clean Water 45,728 3,251 Payments to corporate entities (c) - 1,221

Annual appropriations - other services - non-operating (f) Prior year appropriations available 23,622 - Administered assets and liabilities 3,860 -

Total administered annual appropriations 522,869 453,132

Administered special appropriations (g) 198,142 2,189,037

Special accounts (g) Opening balance 496,454 5,552,349

s75 transfer from Treasury (h) 4,919,000 - s75 transfer to Agriculture and Water Resources (i) (55,304) -

Appropriation receipts (j) 309,442 2,265,669 Non-appropriation receipts 412,874 54,203

Total special account receipts 6,082,466 7,872,221 less administered appropriations drawn from annual/special

appropriations and credited to special accounts (309,442) (2,265,669)less payments to corporate entities from annual/special

appropriations (173,942) (190,877)less special account balances for corporate entities (4,919,000) (6,919,000)Total administered resourcing 1,401,093 1,138,844 Total resourcing for the Department of the Environment 2,063,571 1,788,403

2015-16 2016-17Average staffing level (number) 1,828 1,755

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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(a) Appropriation Bill (No.1) 2016-17.(b) Following the Environment Protection and Biodiversity Conservation Act 1999 section 514S, the

Department of the Environment 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 Act 2013.

(d) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability 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) 2016-17.(g) Excludes 'Special Public Money' held in accounts such as Services for Other Entities and Trust Moneys

accounts. For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please 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 renewable energy technology development, including the Clean Energy Finance Corporation Special Account transferred from the Department of the Treasury as a result of the amended Administrative Arrangements Order dated 21 September 2015.

(i) The responsibility for water policy and resources transferred to the Department of Agriculture and Water Resources as a result of the amended Administrative Arrangements Orders dated 21 September 2015 and 30 September 2015.

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

Third party payments from and on behalf of other entities

2015-16 Estimated

actual $'000

2016-17 estimate

$'000

Payments made to other entities for the provision of services 15,658 6,267 Receipts received from other entities for the provision of services

(disclosed in s74 Retained revenue receipts section above) 2,450 483 Payments made to corporate entities within the Portfolio

Australian Renewable Energy Agency (Appropriation Bill (No. 1) 2016-2017) - 1,221

Australian Renewable Energy Agency (Australian Renewable Energy Agency Act 2011) 153,942 189,037

Clean Energy Finance Corporation (Clean Energy Finance Corporation Act 2012) 238,873 176,341

Director of National Parks (Appropriation Bill (No. 1) 2016-2017) 40,470 42,829 Director of National Parks (Appropriation Bill (No. 2) 2016-2017) - 619 Sydney Harbour Federation Trust (Appropriation Act (No. 4)

2015-2016) 20,000 -

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1.3 BUDGET MEASURES

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

Table 1.2: Department of the Environment 2016-17 Budget measuresPart 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program

2015-16$'000

2016-17$'000

2017-18$'000

2018-19$'000

2019-20$'000

Revenue measures Environment Protection and 1.5 Biodiversity Conservation – revised charging arrangements

Administered revenues - (2,196) (1,569) (1,206) (990)

Total - (2,196) (1,569) (1,206) (990)Fuel Quality Standards – 1.6 revised charging arrangements

Administered revenues - 53 48 48 55 Departmental revenues - (38) (38) (38) (38)

Total - 15 10 10 17 Total revenue measures

Administered - (2,143) (1,521) (1,158) (935)Departmental - (38) (38) (38) (38)

Total - (2,181) (1,559) (1,196) (973)

Expense measures Reef 2050 Plan and Reef Trust – 1.1 additional contribution (a)

Administered expenses - 8,891 8,891 (17,782

) 40,000

Total - 8,891 8,891 (17,782

) 40,000 National Landcare Program – 1.1 emerging priorities (b)

Administered expenses - 8,000 10,649 (6,000)(12,600

)

Total - 8,000 10,649 (6,000)(12,600

)20 Million Trees Program – 1.1 extension (c)

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

Total - - - - -

Commonwealth Marine Reserves 1.1 – implementation (d)

Administered expenses - - 10,575 10,262 7,496 Total - - 10,575 10,262 7,496

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Part 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) (Continued)

Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Environment Protection and 1.5 Biodiversity Conservation – revised charging arrangements

Departmental expenses - (2,196) (1,569) (1,206) (990)Total - (2,196) (1,569) (1,206) (990)Fuel Quality Standards – 1.6 revised charging arrangements

Departmental expenses - 53 48 48 55 Total - 53 48 48 55 Regulatory Workflow Systems – 1.1, 1.5 Improvements

Departmental expenses - 1,717 - - - Total - 1,717 - - - Clean and Renewable Energy 2.3 Innovation – Clean Energy Finance Corporation and the Australian Renewable Energy Agency (e)

Departmental expenses - 852 2,845 2,559 1,750 Total - 852 2,845 2,559 1,750 Antarctic Traverse and Year-Round Aviation Access (f) 3.1

Departmental expenses - 3,800 3,888 3,108 478 Total - 3,800 3,888 3,108 478 Antarctica – maintaining Australia's 3.1, 1.1 presence (g)

Administered expenses - - - - (12,900

)Departmental expenses - 20,500 20,600 17,820 16,200

Total - 20,500 20,600 17,820 3,300 Commonwealth Environmental Water Office (h) 1.1, 4.2

Administered expenses - - - - (8,510)Departmental expenses - 8,510 - - -

Total - 8,510 - - (8,510)

National Carp Control Plan 4.2 − Development

Departmental expenses - 221 223 113 - Total - 221 223 113 - Total expense measures

Administered - 16,891 30,115 (13,520) 13,486 Departmental - 33,457 26,035 22,442 17,493

Total - 50,348 56,150 8,922 30,979

24


Part 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) (Continued)

Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Capital measures Regulatory Workflow Systems – 1.1, 1.5 Improvements

Departmental capital - - 1,795 - -

Total - - 1,795 - - Antarctic Traverse and Year-Round 3.1 Aviation Access

Departmental capital - - - 6,344 7,340

Total - - - 6,344 7,340 Commonwealth Environmental Water Office (h) 4.2

Administered capital - - - - (201)Departmental capital - 201 - - -

Total - 201 - - (201)Trans-Pacific Partnership – All Implementation

Departmental capital - 300 - - - Total - 300 - - - Total capital measures

Administered - - - - (201)Departmental - 501 1,795 6,344 7,340

Total - 501 1,795 6,344 7,139 Prepared on a Government Finance Statistics (fiscal) basis.Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.(a) Funding of $40.0 million in 2019-20, $15.0 million in 2020-21 and $15.0 million in 2021-22 will be

credited to the Reef Trust Special Account. Funding of $101.0 million will be allocated from uncommitted funds within the National Landcare Program – Natural Heritage Trust to implementation of the Reef 2050 Plan (comprising $8.9 million a year from 2016-17 to 2019-20 and $32.7 million a year in 2020-21 and 2021-22). As part of this allocation, funding from 2018-19 (totalling $17.8 million) will be moved to 2016-17 and 2017-18 ($8.9 million a year).

(b) The measure includes funding of $8.0 million in 2016-17, $10.6 million in 2017-18, and $4.0 million in 2018-19. The numbers in the measure reflect the effect of offsetting savings from elsewhere in the portfolio.

(c) Funding of $11.0 million in 2018-19 and $9.0 million in 2019-20 will be allocated from existing funding in the National Landcare Program – Natural Heritage Trust.

(d) Funding of $27.8 million will be appropriated to the Director of National Parks and is reflected in Table 1.2 of the Director of National Parks – Agency Resources and Planned Performance chapter.

(e) Funding provided to the Department of the Environment for employment of Australian Renewable Energy Agency staff, as required by section 62 of the Australian Renewable Energy Agency Act 2011 (Cth).

(f) The measure includes $38.3 million in departmental funding from 2016-17 to 2025-26 and $16.6 million in capital funding from 2018-19 to 2022-23 for the Department of the Environment.

(g) The Government will be providing an additional $200 million over 10 years from 2016-17 to Antarctica – maintaining Australia's presence, with further additional ongoing funding beyond 2025-26. Additional funding of $20.8 million in 2018-19 and $21.2 million in 2019-20 will be provided through this measure. The numbers in the measure reflect the effect of offsetting savings from elsewhere in the portfolio. Funding associated with the acquisition of the replacement icebreaker is included in Table 3.5 Departmental Capital Budget Statement.

(h) The measure includes a total of $8.7 million in funding in 2016-17. The numbers in the measure reflect the effect of offsetting savings from elsewhere in the portfolio.

25


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

NewOutcome 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.

Description of change:New outcome, created for Budget 2016-17, supersedes the old Outcome 2.

Old Statement: Reduce Australia's greenhouse gas emissions, adapt to the impacts of climate

change and contribute to the negotiation of an effective global solution to climatechange, through developing and implementing a national response to climate change.

NewOutcome 3

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

Description of change:New outcome, created for Budget 2016-17, supersedes the old Outcome 3.

Old Statement: Advancement of Australia’s strategic, scientific, environmental and economic

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

NewOutcome 4

Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge base.

Description of change:New outcome, created for Budget 2016-17 to reflect changes to the responsibility of the Portfolio following Machinery of Government changes of 21 and 30 September 2015. This supersedes the old Outcome 4.

Old Statement: Improve the health of rivers and freshwater ecosystems and water use efficiency

through implementing water reforms, and ensuring enhanced sustainability, efficiency and productivity in the management and use of water resources.

Program changes

Program No.

Program title Description of change

4.1 Water Science and Wetlands Program renamed to reflect changes following Machinery of Government changes of 21 and 30 September 2015.

26


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:From 1 July 2015, performance reporting requirements in the Portfolio Budget Statements sit alongside those required under the enhanced commonwealth performance framework. 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 from October 2016 – to provide an entity’s complete performance story.

27


2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

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

Linked programs

Australian Fisheries Management Authority

Programs Program 1.1 – Australian Fisheries Management Authority

Contribution to Outcome 1 made by linked programsThe Department of the Environment and Australian Fisheries Management Authority engage on fisheries management.

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 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.

Australian Taxation OfficePrograms

Program 1.12 – Product Stewardship for Oil Contribution to Outcome 1 made by linked programsThe Department of the Environment 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.

28


Bureau of MeteorologyPrograms

Program 1.1 – Bureau of Meteorology

Contribution 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.

Commonwealth Scientific and Industrial Research OrganisationPrograms

Program 1.1 – Research – National Flagships, Science and ServicesContribution to Outcome 1 made by linked programsThe Commonwealth Scientific and Industrial Research Organisation is a partner in the Earth Systems and Climate Change Hub in the National Environmental Science Program.

Department of Agriculture and Water ResourcesPrograms

Program 1.1 – Agriculture 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

Contribution to Outcome 1 made by linked programsThe Departments of the Environment and Agriculture and Water Resources work together under a memorandum of understanding to deliver the National Landcare Program.The Departments of the Environment and Agriculture and Water Resources engage on biosecurity, wildlife trade and fisheries policy.

Department of Foreign Affairs and TradePrograms

Program 1.2 – Official Development Assistance

Contribution to Outcome 1 made by linked programsThe Department of the Environment 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

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Department of Foreign Affairs and Trade Program 7.7 – Regulatory Policy

Contribution to Outcome 1 made by linked programsThe Department of the Environment and the Department of Health work together to manage policy 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 Immigration and Border Protection work together to prevent illegal wildlife trade and control transboundary movements of hazardous wastes and their disposal.

30


Department of the Prime Minister and CabinetPrograms

Program 1.1 – Prime Minister and Cabinet Program 2.1 – Indigenous Advancement – Jobs, Land and Economy

ProgramContribution to Outcome 1 made by linked programsThe Departments of the Environment, 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 the Prime Minister and Cabinet work cooperatively to deliver the funding for the Indigenous Protected Areas Program and elements of the Indigenous Rangers Program through the National Landcare Program.The Department of the Environment is supporting the Government's Cities agenda, through the delivery of the National Landcare Program, including the 20 Million Trees Program, and the Green Army, 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 Partnerships Payment 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. A number of payments are made to states and territories for heritage management and species conservation.


Programs Program 1.1 – Parks and Reserves

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

31


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

32

Budgeted expenses for Outcome 1

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

Table 2.1.1: Budgeted expenses for Outcome 1Outcome 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.

2015-16 Estimated

actual$'000

2016-17Budget

$'000

2017-18 Forward estimate

$'000


$'000

2019-20Forward estimate

$'000

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

Ordinary annual services (Appropriation Bill No. 1)

National Landcare Program: Natural Heritage Trust 227,294 230,972 221,847 188,244 202,026

Less special account (227,294) (230,972)

(221,847) (188,244) (202,026

)Environmental Stewardship

Program 10,339 9,945 9,918 9,980 9,713 Green Army 90,867 89,241 90,247 91,198 92,102 Reef 2050 Plan 15,865 34,124 39,419 39,461 40,000

Less special account (15,779) (34,038) (39,333) (39,375) (40,000)Great Barrier Reef Foundation - contribution 3,125 3,125 - - - Commonwealth Marine Reserves - - 10,575 10,262 7,496

Special accounts Natural Heritage Trust of Australia

Account 227,294 230,972 221,847 188,244 202,026 Reef Trust Special Account 17,498 39,697 41,006 41,003 41,788

Administered total 349,209 373,066 373,679 340,773 353,125 Departmental expenses

Departmental appropriation (a) 40,539 39,650 38,435 39,009 39,105 s74 Retained revenue receipts (b) 3,445 598 17 18 17 Payments to corporate entities (c) 40,470 42,829 47,414 48,856 47,486 Expenses not requiring appropriation

in the Budget year (d) 4,967 3,812 3,827 5,091 5,012 Departmental total 89,421 86,889 89,693 92,974 91,620

Total expenses for Program 1.1 438,630 459,955 463,372 433,747 444,745


Table 2.1.1: Budgeted expenses for Outcome 1 (Continued)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.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.2: Environmental Information and ResearchAdministered expenses


National Environmental Science Program 27,254 25,520 25,520 25,520 25,520

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


Departmental appropriation (a) 6,689 6,333 6,471 6,403 6,429 s74 Retained revenue receipts (b) 59 15 5 5 5 Expenses not requiring appropriation

in the Budget year (d) 518 311 322 414 408 Departmental total 7,266 6,659 6,798 6,822 6,842

Total expenses for Program 1.2 36,550 34,209 34,348 34,372 34,392 Program 1.3: Land Sector InitiativesAdministered expenses


Biodiversity Fund 56,965 42,423 1,997 - - Regional NRM Planning for Climate

Change 1,245 - - - - Administered total 58,210 42,423 1,997 - -

Departmental expenses Departmental appropriation (a) 6,393 5,515 2,873 - - s74 Retained revenue receipts (b) 24 9 - - - Expenses not requiring appropriation

in the Budget year (d) 393 266 141 - - Departmental total 6,810 5,790 3,014 - -

Total expenses for Program 1.3 65,020 48,213 5,011 - -

34



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

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


Heritage Grants 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 467 467 - - - Giant Pandas 1,310 1,402 1,402 1,427 -


Departmental appropriation (a) 28,388 26,423 29,908 29,954 31,057 s74 Retained revenue receipts (b) 1,252 533 10 10 10 Expenses not requiring appropriation


Total expenses for Program 1.4 43,236 37,432 37,884 37,863 37,512 Program 1.5: Environmental RegulationAdministered expenses


Remediation of land affected by the Tiwi Islands Plantation Project 74 - - - -

Environment Protection and Biodiversity Conservation Act -

Water Resources Amendment 259 259 259 259 259 Orangutan Reintroduction 100 - - - -

Administered total 433 259 259 259 259 Departmental expenses

Departmental appropriation (a) 52,087 53,418 50,110 48,472 51,156 s74 Retained revenue receipts (b) 3,420 3,333 3,248 3,248 3,248 Expenses not requiring appropriation



35



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

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


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

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

Special appropriations Ozone Protection & Synthetic Green-

house Gas Management Act 1989 4,000 - - - - Special accounts

Ozone Protection & Synthetic Greenhouse Gas Account 12,804 11,521 11,614 11,724 11,835

National Environment Protection Council Special Account 1,506 1,984 871 680 680

Expenses not requiring appropriation in the Budget year (d) 56 - - - -


Departmental appropriation (a) 30,465 31,083 32,964 33,723 32,818 s74 Retained revenue receipts (b) 15,820 15,318 15,268 15,267 15,267 Expenses not requiring appropriation


Total expenses for Program 1.6 66,847 61,733 62,659 63,880 62,985 Program 1.7: Cities and the Built EnvironmentDepartmental expenses

Departmental appropriation (a) 2,611 - - - - Departmental total 2,611 - - - -

Total expenses for Program 1.7 2,611 - - - -

36



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No.1) 199,568 179,945 147,481 146,209 142,567

Special appropriations 4,000 - - - - Special accounts 259,102 284,174 275,338 241,651 256,329 Expenses not requiring appropriation

in the Budget year (d) 56 - - - - Administered total 462,726 464,119 422,819 387,860 398,896

Departmental expenses Departmental appropriation (a) 167,172 162,422 160,761 157,561 160,565 s74 Retained revenue receipts (b) 24,020 19,806 18,548 18,548 18,547 Payments to corporate entities (c) 40,470 42,829 47,414 48,856 47,486 Expenses not requiring appropriation


Total expenses for Outcome 1 712,064 701,202 659,460 625,364 637,913

2015-16 2016-17Average staffing level (number) 1,018 983

(a) Outcome 1 also has a departmental capital budget of $9.494 million in 2016-17.(b) Estimated expenses incurred in relation to receipts retained under section 74 of the Public Governance,

Performance and Accountability 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 Resource Statement.(d) Expenses not requiring appropriation comprise depreciation, amortisation expense, audit fees and an

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

37


Table 2.1.2: Performance criteria for Outcome 1

Table 2.1.2 details the performance criteria for each program associated with Outcome 1. It summarises how each program is delivered and where 2016-17 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. Corporate Plan purpose: Conserve, protect and sustainably manage Australia’s terrestrial and marine biodiversity, threatened species, ecosystems, environment and heritage.

Program 1.1 – Sustainable Management of Natural Resources and the EnvironmentThe objective of this program is to improve the extent and condition of Australia’s unique biodiversity and natural resources, including the Great Barrier Reef, through protection of habitats and mitigation of threats. Delivery Program 1.1 will be delivered by:

Delivering biodiversity conservation and natural resource management programs including the Reef Trust, Green Army, 20 Million Trees, and the National Landcare Program

Implementing initiatives to improve the health of the Great Barrier Reef including the Reef 2050 Plan and Reef Plan Report Card 2014-15

Implementing the Threatened Species Strategy Representing Australia’s interests at international forums on biodiversity matters

and meeting obligations under international agreements.

Performance information

Year Key performance indicators Forecast against indicators

2015-16 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, by at least: 50 per cent for anthropogenic dissolved inorganic nitrogen; 60 per cent for pesticides; and 20 per cent for anthropogenic sediment and particulate nitrogen.

On track

Any EPBC Act approved offset delivered under the Reef Trust maintains or improves the condition of matters of national and state environmental significance.

On track

Any EPBC Act approved offset delivered under the Reef Trust maintains or improves the condition of matters of national and state environmental significance.

On track

Increase in extent and connectivity of vegetation communities in project areas.5

On track

Number of natural resource management On track

38



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

projects demonstrating maintenance or improvement in the condition of targeted threatened species habitat by June 2018.

Increase in area of land on which farmers have adopted better management practices to improve their long-term yield by June 2018.

On track

Number of projects funded annually with focus on threatened species recovery.

On track

Reverse population decline in 20 mammal species by 2020.

On track

Increase in area of land managed to reduce threats to nationally listed threatened species and ecological communities by June 2018.

On track

Increase in the level of participation, skill-development and/or employment of Indigenous Australians through natural resource management projects.

On track

Year Performance criteria (a) Targets

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

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, by at least: 50 per cent for anthropogenic dissolved inorganic nitrogen; 60 per cent for pesticides; and 20 per cent for anthropogenic sediment and particulate nitrogen.6

Australia meets its obligations under international environmental agreements.

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

5 For projects reporting through the online Monitoring, Evaluation, Reporting and Information Tool.6 These targets subject to change following the planned review in late 2016 with revised targets identified by June 2017.

39




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.

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.

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.

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

2017-18 and beyond

As for 2016-17 Continued implementation of the Reef 2050 plan with a focus on medium term priorities in the Reef 2050 Plan implementation strategy. Continued stakeholder engagement through the Reef 2050 governance structure including the Reef Advisory Committee and Independent Scientific Expert Panel.

Reef Trust continues investment through phased Investment strategies to deliver projects that address key threats, with a focus on improving

40




water quality and coastal habitats, and protecting biodiversity.

As for 2016-17 for remaining four targets.

Material changes to Program 1.1 resulting from the following measures:

Measure title – Reef 2050 Plan and Reef Trust – additional contribution

Measure title – National Landcare Program – emerging priorities

Measure title – 20 Million Trees Program – extension

Measure title – Commonwealth Marine Reserves – implementation

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

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.

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.



2015-16 Increase in the number of environmental datasets which are openly accessible and available on the internet and follow guidance provided under the National Plan for Environmental Information initiative.

On track

Qualitative assessment shows that departmental staff, state governments, business, community groups and others are using research outputs from the National

On track

41


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.

Environmental Science Program to inform management and policy development.

Qualitative assessment shows that departmental staff, state governments, business, community groups and others are using data which draws on the Essential Environmental Measures for Australia program to inform policy development and environmental decision making.

On track

Qualitative assessment shows that departmental staff, state governments, business, community groups and others are using the 2016 State of the Environment report to inform policy development and environmental decision making.

Reporting methodology under development


2016-17 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.

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

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

2017-18 and beyond

As for 2016-17 As for 2016-17

Program 1.3 – Land Sector InitiativesThe objective of this program is to improve the extent, condition and connectivity of Australia’s unique biodiversity and natural resources through protection of habitats and mitigation of threats to threatened species and ecological communities.

Delivery Program 1.3 will be delivered by: Delivering Biodiversity Fund projects from funding agreements to achieve

biodiversity conservation and Natural Resource Management outcomes.



2015-16 Increase in extent of native vegetation in project areas.

On track

Number of natural resource management projects demonstrating maintenance or improvement in the condition of targeted threatened species habitat by June 2018.

On track

42


Program 1.3 – Land Sector InitiativesThe objective of this program is to improve the extent, condition and connectivity of Australia’s unique biodiversity and natural resources through protection of habitats and mitigation of threats to threatened species and ecological communities.

Increase in area of land managed to reduce threats to nationally listed threatened species and ecological communities by July 2018.

On track

Amount of carbon that has been sequestered through project investments.

On track

Year Performance criteria Targets


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


2017-18 and beyond

As for 2016-17 95 per cent of Biodiversity Fund projects substantially complete, delivering 53,800 ha of revegetation to improve vegetation condition and/or increase extent.

Program 1.4 – Conservation of Australia’s Heritage and the 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 and migratory species; and (c) protect internationally traded flora and fauna consistent with national and international obligations.


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

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

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



2015-16 Australia’s objectives for engagement in international forums on heritage, wildlife, the marine environment and biodiversity are achieved.

Achieved to date

Documentation published under the EPBC Act on significant natural, Indigenous and historic heritage places supports their protection and management.

On track

43


Program 1.4 – Conservation of Australia’s Heritage and the 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 and migratory species; and (c) protect internationally traded flora and fauna consistent with national and international obligations.

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

On track

Public access and use of the Species Profile and Threats (SPRAT) database, as indicated by the average monthly number of unique page views of the SPRAT website, does not fall below 40,000.

Achieved to date

Australian support through the Kokoda Initiative enables the protection of the region’s important heritage values.

On track



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


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

All activities required by legislation are conducted within statutory timeframes.

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

2017-18 and beyond

As for 2016-17 As for 2016-17

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.


Undertaking individual and strategic environmental assessments and approvals under the EPBC Act and Environment Protection (Sea Dumping) Act 1981

Significant progress on implementing government reforms in relation to environment protection

Effective and efficient delivery of government policies, programs and priorities in relation to environmental protection

Implementing a risk based approach to compliance and enforcement activities to support regulation under the EPBC Act and the Environment Protection (Sea Dumping) Act 1981

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

44



(Alligator Rivers Region) Act 1978. Undertake an annual scientific research and monitoring programs into the

environmental impacts 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.



2015-16 The number of hectares of habitat protected by offsets7 compared with the area impacted8 for approved projects.

On track

The number and area of strategic assessments completed has increased:– number of strategic assessments completed in 2015-16– km2/ha already approved under strategic assessments.

On track

Estimated number of projects that did not require referral to the Department as these projects are able to be assessed under an approved Strategic Assessment.

On track

Ensure the concentration of uranium in surface water downstream of Ranger Mine remains less than 2.8 micrograms per litre.

Achieved to date

Annual research and monitoring programs are scientifically rigorous, appropriately targeted to key knowledge needs and independently endorsed by the Alligator Rivers Technical Committee.

On track


2016-17 Australia’s biodiversity, including threatened species, ecological communities and migratory species, and significant heritage places, are identified, conserved and protected.Data and information generated or commissioned by the Department are used by stakeholders and/or support evidence based decision making.

All activities required by legislation are conducted within statutory timeframes.The number of hectares of habitat protected by offsets9 is equal to or greater than the area impacted10 for approved projects.

Program 1.5 – Environmental Regulation

7 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. 8 Project footprint. 9 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. 10 Project footprint.

45



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

Improved compliance with national environmental legislation.

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

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

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

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.

2017-18 and beyond

As for 2016-17 As for 2016-17

Material changes to Program 1.5 resulting from the following measure:

Measure title – Regulatory Workflow Systems - Improvements(a) New or modified performance criteria that reflect new or materially changed programs are shown in

italics.

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


Discharge of legislative and regulatory functions related to environmental health

Significant progress on implementing government reforms in relation to environmental health

Effective and efficient delivery of government policies, programs and priorities 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.

46


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



2015-16 98 per cent of the population provided with access to TV and computer recycling services:

On track

- 50 per cent of total TV and computer waste is recycled nationally in 2015-16- 90 per cent of recycled materials are recovered for re-use.

Annual imports of ozone depleting substances do not exceed 28 Ozone Depleting Potential tonnes in 2015.

Achieved to date

Collaboration with government, industry and the community through national approaches results in increased recycling and a reduction in the amount of waste and hazardous substances being released into the environment.

On track


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

All activities required by legislation are conducted within statutory timeframes.

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

Improved compliance with national environmental legislation.

2017-18 and beyond As for 2016-17 As for 2016-17

47



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

Linked programs


Programs Program 1.1 – Australian Renewable Energy Agency

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

Australian Taxation Office

Programs Program 1.1 – Australian Taxation Office

Contribution to Outcome 2 made by linked programsThe Department of the Environment 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.


Programs Program 1.1 – Bureau of Meteorology

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

48



Programs Program 1.1 – Clean Energy Finance Corporation

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


Programs Program 1.1 – Clean Energy Regulator

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


Programs Program 1.1 – Reviewing climate change mitigation policies

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

Department of Industry, Innovation and Science

Programs Program 3 – Program Support

Contribution to Outcome 2 made by linked programsThe Department of Industry, Innovation and Science supports the Department of the Environment's Emissions Reduction Fund by raising awareness of participation opportunities and assisting businesses to develop project applications.

49


Department of the Prime Minister and Cabinet

Programs Program 1.1 – Prime Minister and Cabinet

Contribution to Outcome 2 made by linked programsThe Department of the Environment is supporting the Government’s Cities agenda, through the delivery of the National Landcare Program, including the 20 Million Trees program and the Green Army, 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.The Department of the Environment 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.

50




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.

2015-16 Estimated actual

$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 2.1: Reducing Australia's Greenhouse Gas EmissionsAdministered expenses


Extending the benefits of the Carbon Farming initiative 475 428 - - -

Solar Towns 1,600 - - - - Independent Scientific Committee

on Wind Turbines 22 29 29 15 - Administered total 2,097 457 29 15 -

Departmental expenses Departmental appropriation (a) 39,166 36,115 37,863 37,000 36,856 s74 Retained revenue receipts (b) 594 505 452 452 453 Expenses not requiring appropriation

in the Budget year (c) 8,983 8,965 2,578 165 165 Departmental total 48,743 45,585 40,893 37,617 37,474

Total expenses for Program 2.1 50,840 46,042 40,922 37,632 37,474 Program 2.2: Adapting to Climate ChangeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) Natural resource management for

climate change 1,226 - - - - National Climate Change

Adaptation Research Facility 3,266 2,730 - - - Administered total 4,492 2,730 - - -

Departmental expenses Departmental appropriation (a) 2,027 2,189 2,244 2,234 2,232 s74 Retained revenue receipts (b) 11 4 - - - Expenses not requiring appropriation

in the Budget year (c) 5 5 5 5 5 Departmental total 2,043 2,198 2,249 2,239 2,237



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.


$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 2.3: Renewable Energy Technology DevelopmentAdministered expenses

Special appropriations Australian Renewable Energy

Agency Act 2011 153,942 189,037 107,925 67,296 19,704 Less payments to corporate

entities (d) (153,942) (189,037) (107,925) (67,296) (19,704)

Payments to corporate entities (d) 153,942 190,258 109,998 69,759 22,572 Administered total 153,942 190,258 109,998 69,759 22,572

Departmental expenses Departmental appropriation (a) 4,688 7,193 6,794 6,190 4,166

Departmental total 4,688 7,193 6,794 6,190 4,166 Total expenses for Program 2.3 158,630 197,451 116,792 75,949 26,738 Outcome 2 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 6,589 3,187 29 15 -

Payments to corporate entities (d) 153,942 190,258 109,998 69,759 22,572 Administered total 160,531 193,445 110,027 69,774 22,572

Departmental expenses Departmental appropriation (a) 45,881 45,497 46,901 45,424 43,254 s74 Retained revenue receipts (b) 605 509 452 452 453 Expenses not requiring appropriation

in the Budget year (c) 8,988 8,970 2,583 170 170 Departmental total 55,474 54,976 49,936 46,046 43,877


2015-16 2016-17Average staffing level (number) 242 257

(a) Outcome 2 also has a departmental capital budget of $0.200 million in 2016-17.(b) Estimated expenses incurred in relation to receipts retained under section 74 of the Public Governance,

Performance and Accountability Act 2013.(c) Expenses not requiring appropriation comprise depreciation, 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 Resource Statement.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.




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 changeCorporate Plan purpose: Develop and implement 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 and collaborating with the Australian Renewable Energy Agency and the Clean Energy Finance Corporation



2015-16 Australia’s annual emissions are consistent with meeting the Government’s 2020 target to reduce emissions by 5 per cent on 2000 levels.

On track

Percentage of national emissions covered by Emissions Reduction Fund methods.

On track, seven new methods covering the oil and gas, facilities, agriculture, waste and energy efficiency sectors have been made bringing the total number of methods to 33.

Increase in the number of Australian carbon credit units issued.

Achieved to date. Between 1 July 2015 and 31 December 2015, 4,266,673 Australian Carbon Credit Units were issued. This brought the total number of ACCUs issued by the end of 2015 to 19,715,431.

Compliance with Emissions Reduction Fund safeguard mechanism – covered facilities do not exceed safeguard mechanism baselines.

On track. Subordinate legislation to enable the operation of the safeguard mechanism was made and will come into force on 1 July 2016.

The uptake of additional renewable energy is encouraged and the Renewable Energy Target is achieved.

On track

Key countries and civil society organisations from across the region commit to a collective plan to slow, halt and reverse the loss of tropical

On track

54


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 changeCorporate Plan purpose: Develop and implement 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.

rainforests across the Asia-Pacific region.


2016-17 Australia meets its obligations under international climate change agreements

Australia’s annual emissions are consistent with meeting the Government’s 2020 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, 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.

2017-18 and beyond

As for 2016-17 As for 2016-17

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.



2015-16 Independent evaluation of the effectiveness of the National Climate Change Adaptation Research Facility program undertaken by 30 June 2017 demonstrates:

On track

55


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.

number of end-users engaged in design of coastal risk management tool,

the number of coastal communities using the information and tools from the project to inform local policy and plans,

the degree of awareness among relevant government agencies, coastal councils and business and industry groups of National Climate Change Adaptation Research Facility Phase 2 outputs,

the extent to which the risk management tool is aligned with state and territory government initiatives in climate change adaptation in the coastal zone.

Information on climate change projections and adaptation approaches is well-targeted to the needs of regional natural resource management organisations and other decision-makers.

On track


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

Department supports capability development across Government in adaptation 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.

2017-18 and beyond

As for 2016-17 As for 2016-17

56


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.



2015-16 Number of projects supported to improve uptake of renewable energy

On track. 213 projects for 2015-16.


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.

2017-18 and beyond

As for 2016-17 As for 2016-17


Measure title – Clean and Renewable Energy Innovation - Clean Energy Finance Corporation and the Australian Renewable Energy Agency


57




Linked programs



Contribution 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.

Commonwealth Scientific and Industrial Research OrganisationPrograms

Program 1.1 – Research – National Flagships, Science and ServicesContribution 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 Defence

Programs Program 1.13 – Chief Finance Officer

Contribution 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.

58



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

Table 2.3.1: Budgeted expenses for Outcome 3Outcome 3: Advance Australia’s strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.

2015-16 Estimated

actual$'000

2016-17Budget

$'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


Departmental appropriation (b) 93,863 107,341 107,600 107,965 119,708 s74 Retained revenue receipts (c) 16,072 10,875 5,208 5,208 5,208 Expenses not requiring appropriation

in the Budget year (a) 54,298 53,142 54,714 53,838 59,190 Departmental total 164,233 171,358 167,522 167,011 184,106

Total expenses for Program 3.1 164,245 171,370 167,534 167,023 184,118 Outcome 3 Totals by appropriation typeAdministered expenses

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


Departmental appropriation (b) 93,863 107,341 107,600 107,965 119,708 s74 Retained revenue receipts (c) 16,072 10,875 5,208 5,208 5,208 Expenses not requiring appropriation

in the Budget year (a) 54,298 53,142 54,714 53,838 59,190 Departmental total 164,233 171,358 167,522 167,011 184,106



(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 $15.193 million in 2016-17.(c) Estimated expenses incurred in relation to receipts retained under section 74 of the Public Governance,

Performance and Accountability Act 2013. The profile of revenue and the subsequent funded expenses over the forward years reflects that goods and services revenue is recognised as contracts that are confirmed over time (with contracts yet to be confirmed).

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

59




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

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 2016-17 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.



2015-16 Scientific research conducted in Antarctica and the Southern Ocean is internationally recognised, as indicated by:- the number of scientific papers published in peer reviewed journals and/or submitted to key international forums in the previous calendar year, and- the number of international institutions collaborating in the Australian Antarctic program during the financial year.

On track

Exercise enhanced Australian influence in the Antarctic Treaty system, including through participation in its various forums, as measured by the extent to which Australia’s objectives are achieved and the number of senior positions (for example, Chair or Vice-Chair) held by Australia during the financial year.

On track


2016-17 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 Strategic Plan.

60


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

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.

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

Australian Antarctic program complies with relevant environmental legislation during 2016-17.

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 during 2016-17 including collaborative agreements or logistics with three-four Antarctic programs.- At least 100 scientific publications published in peer reviewed journals.

2017-18 and beyond

As for 2016-17 As for 2016-17


Measure title – Antarctic Traverse and Year-Round Aviation Access Measure title – Antarctica – maintaining Australia’s Presence


61




Linked programs



Contribution to Outcome 4 made by linked programsThe Bureau of Meteorology is a collaborator in the delivery of the Bioregional Assessment Program, managing and leading the technical component. The Bureau 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’s water information services inform Commonwealth environmental water planning and decision making in relation to water resource availability and environmental water requirements.

Commonwealth Scientific and Industrial Research Organisation

Programs Program 1.1 – Research – National Flagships, Science and Services

Contribution to Outcome 4 made by linked programsThe Commonwealth Scientific and Industrial Research Organisation is a collaborator in the delivery of bioregional assessments, contributing expertise in ecology, hydrology, hydrogeology, informatics and risk analysis.

62


Department of Agriculture and Water Resources

Programs Program 1.2 – Sustainable Management – Natural Resources Program 3.1 – Water Reform

Contribution to Outcome 4 made by linked programsThe Departments of the Environment and Agriculture and Water Resources work collaboratively to implement the Murray-Darling Basin Plan and the Commonwealth’s water reform policy agenda.The Departments of the Environment, Agriculture and Water Resources, and Industry, Innovation and Science work collaboratively in the planning phase of the National Carp Control Plan.

Department of Industry, Innovation and Science

Programs Sub-program 2.4 – Resources

Contribution to Outcome 4 made by linked programsThe Office of Water Science has responsibilities assigned to it under the Australian Government’s Domestic Gas Strategy (led by Department of Industry, Innovation and Science).The Departments of the Environment, Agriculture and Water Resources, and Industry, Innovation and Science work collaboratively in the planning phase of the National Carp Control Plan.

Geoscience Australia

Programs Program 1.1 – Geoscientific and Spatial Information Services

Contribution to Outcome 4 made by linked programsGeoscience Australia is a collaborator in the delivery of bioregional assessments, providing information and advice on groundwater resources and processes.

63


Murray-Darling Basin Authority

Programs Program 1.1 – Equitable and Sustainable use of the Murray-Darling

Basin Contribution to Outcome 4 made by linked programsThe Department of the Environment 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.

64




Table 2.4.1: Budgeted expenses for Outcome 4Outcome 4: Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge base.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 4.1: Water Science and WetlandsAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) Sustainable Rural Water Use and

Infrastructure (a) 13,331 - - - - MDB Environmental Knowledge

and Research (b) 1,900 1,900 1,900 1,900 - National Urban Water and

Desalination Plan (a) 1,000 - - - - Water Resources Assessment and

Research Grant (b) 175 175 - - - Independent Expert Scientific

Committee on Coal Seam Gas and Large Coal Mining (b) 885 1,035 1,035 1,035 1,035

Cwlth contribution under the Murray Darling Basin Agreement (a) 2,497 - - - -

Special appropriations Water Act 2007 (a) 1,825 - - - -

Less special account (a) (1,825) - - - - Special accounts

Water Efficiency Labelling and Standards Account (a) 392 - - - -

Water for the Environment Special Account (a) 1,825 - - - -

Services for Other Entities and Trust Moneys (a, c) 510 510 510 510 510

Expenses not requiring appropriation in the Budget year (e) 427 71 - - -

Administered total 22,942 3,691 3,445 3,445 1,545

65


Table 2.4.1: Budgeted expenses for Outcome 4 (Continued)Outcome 4: Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge base.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Departmental expenses Departmental appropriation 16,112 2,897 4,096 4,053 4,032 Science Based Framework for Coal

Seam Gas and Coal Mining Impacts on Water (b) 23,702 10,333 10,517 10,984 10,090

s74 Retained revenue receipts (d) 274 14 4 4 4 Expenses not requiring appropriation

in the Budget year (e) 42 16 21 21 21 Departmental total 40,130 13,260 14,638 15,062 14,147

Total expenses for Program 4.1 63,072 16,951 18,083 18,507 15,692 Program 4.2: Commonwealth Environmental WaterAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) Commonwealth Environmental

Water Office 25,940 141 - - - Less special account (25,940) (141) - - -

Special accounts Environmental Water Holdings

Special Account 29,925 33,636 4,400 4,400 2,215 Expenses not requiring appropriation

in the Budget year (e) 593 - - - - Administered total 30,518 33,636 4,400 4,400 2,215

Departmental expenses Departmental appropriation 11,702 9,521 1,020 916 - s74 Retained revenue receipts (d) 61 - - - - Expenses not requiring appropriation

in the Budget year (e) 26 19 23 23 23 Departmental total 11,789 9,540 1,043 939 23


66


Table 2.4.1: Budgeted expenses for Outcome 4Outcome 4: Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge base.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Outcome 4 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 19,788 3,110 2,935 2,935 1,035

Special accounts 32,652 34,146 4,910 4,910 2,725 Expenses not requiring appropriation

in the Budget year (e) 1,020 71 - - - Administered total 53,460 37,327 7,845 7,845 3,760

Departmental expenses Departmental appropriation 51,516 22,751 15,633 15,953 14,122 s74 Retained revenue receipts (d) 335 14 4 4 4 Expenses not requiring appropriation

in the Budget year (e) 68 35 44 44 44 Departmental total 51,919 22,800 15,681 16,001 14,170



(a) The responsibility for Water policy and resources transferred to the Department of Agriculture and Water Resources as a result of the amended Administrative Arrangements Orders dated 21 September 2015 and 30 September 2015.

(b) The responsibility for this activity has remained with the Department.(c) The Department has no discretion over the receipts returned to the Services for Other Entities and Trust

Moneys Special Accounts.(d) Estimated expenses incurred in relation to receipts retained under section 74 of the Public Governance,

Performance and Accountability Act 2013.(e) Expenses not requiring appropriation in the Budget year comprise 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.

67




Outcome 4 – Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge baseCorporate Plan purpose: Improve the health of rivers and freshwater ecosystems (a)

Program 4.1 – Water science and wetlandsThe objective of this program is to improve the knowledge of, and inform decision-making on, the impacts to and management of water-dependent ecosystems consistent with international and national obligations (including coal seam gas and coal mining development impacts) and manage Australia’s obligations under the Ramsar Convention.

Delivery Program 4.1 will be delivered by: 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

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

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.



2015-16 Scientific products on the impacts of coal seam gas and coal mining development on water resources and advice provided by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development are used by decision makers during 2015-16.

Reporting methodology under development

Year Performance criteria Targets2016-17 Data and information generated by the

Department are used by stakeholders and/or supports evidence based decision-making.


All advice provided to regulators by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (IESC) is delivered within statutory timeframes and made publicly available.

Completion and release of bioregional assessments for all 13 bioregions by 30 June 2017.

68


Outcome 4 – Improve the health of freshwater ecosystems (rivers, wetlands, flood plains) through research, education and environmental watering and strengthen the water resources knowledge baseCorporate Plan purpose: Improve the health of rivers and freshwater ecosystems (a)

Program 4.1 – Water science and wetlandsThe objective of this program is to improve the knowledge of, and inform decision-making on, the impacts to and management of water-dependent ecosystems consistent with international and national obligations (including coal seam gas and coal mining development impacts) and manage Australia’s obligations under the Ramsar Convention.

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.

2017-18 and beyond

As for 2016-17 As for 2016-17

(a) Refers to updated purpose that will be reflected in 2016-17 Corporate Plan.

Program 4.2 – Commonwealth Environmental WaterThe objective of this program is to protect and restore water-dependent ecosystems in the Murray-Darling Basin through the management and use of Commonwealth environmental water.

Delivery Program 4.2 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 Commonwealth Environmental Water Holder’s decisions.

Contributing to the development of the National Carp Control Plan



2015-16 Intervention monitoring demonstrates that Commonwealth environmental water has contributed to the environmental objectives of the Murray-Darling Basin Plan including for water quality, ecosystem resilience and function, species diversity and populations of water dependent vegetation, fish and waterbirds at selected monitoring sites in the Murray-Darling Basin.

On track

The extent to which local knowledge and solutions inform the implementation of environmental watering.

On track

69


Program 4.2 – Commonwealth Environmental WaterThe objective of this program is to protect and restore water-dependent ecosystems in the Murray-Darling Basin through the management and use of Commonwealth environmental water.


2016-17 Environmental watering improves the condition of water-dependent ecosystems in the Murray-Darling Basin.

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

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

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

2017-18 and beyond

As for 2016-17 As for 2016-17


Measure title – Commonwealth Environmental Water Office Measure title – National Carp Control Plan - Development


70


Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2016-17 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 in 2016-17. 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 for 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 statementsDepartmental

Comprehensive Income Statement

The Revenue from Government estimate for 2016-17 has increased by $35.4 million since the 2015-16 Portfolio Additional Estimates Statements and the net impact of new measures outlined in Table 1.2 primarily account for the change. The Department’s funding from Government stabilises from 2016-17 to 2018-19. From 2019-20, additional funding for the commencement of the new icebreaker is received.

71


The new funding received since Portfolio Additional Estimates directed towards suppliers’ expenditure and spending on employee benefits has remained stable. Overall the Comprehensive Income Statement projects a $73.5 million loss for 2016-17, an increase of $9.7 million from Portfolio Additional Estimates. The $9.7 million primarily relates to the expenditure of funds received in a prior year from the Department of Foreign Affairs and Trade. Expenses not requiring appropriation primarily account for the remaining loss in 2016-17, and the losses over the forward estimates period covers off the make-good provision for the Antarctic and depreciation and amortisation on the Department’s asset base.

Budgeted Departmental Balance Sheet

The Department’s net assets position improves over the forward estimates period due to the injection of equity funding by the Government to build a new icebreaker for Antarctic operations. The Budget also provides funding in the forward estimates to purchase additional plant and equipment for the Antarctic, refer Table 1.2.

Administered

Schedule of Budgeted Income and Expenses Administered on Behalf of Government

Budgeted administered expenses for 2016-17 total $694.9 million and the Department will pay grants of $314.7 million and $190.3 million of payments to corporate entities in 2016-17. The payments to corporate entities is primarily comprised of transfer payments to the Australian Renewable Energy Agency from the special appropriation managed by the Department.

Administered income from gains has increased at Budget due to the recognition of $239 million in 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 $4.3 billion in 2015-16 to $7.8 billion in 2019-20. The increase is driven by the drawdown of Clean Energy Finance Corporation Special Account funds, which are invested in the Clean Energy Finance Corporation 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.

72


3.2.1 BUDGETED FINANCIAL STATEMENTS TABLES

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

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 209,532 200,286 193,342 189,574 187,822 Suppliers 189,196 174,785 162,245 160,814 173,312 Grants 10,756 4,099 1,901 1,050 1,050 Payments to the Director of National

Parks 40,470 42,829 47,414 48,856 47,486

Depreciation and amortisation 50,760 46,718 47,378 48,768 54,000 Finance costs 17,100 17,100 17,100 17,100 17,100 Other expenses 3,150 400 400 400 400 Total expenses 520,964 486,217 469,780 466,562 481,170 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 41,032 31,204 24,212 24,212 24,212 Other revenue 723 723 723 723 723 Total own-source revenue 41,755 31,927 24,935 24,935 24,935 Total own-source income 41,755 31,927 24,935 24,935 24,935 Net cost of services 479,209 454,290 444,845 441,627 456,235 Revenue from Government 398,902 380,840 378,309 375,759 385,135 Deficit attributable to the Australian

Government (80,307) (73,450) (66,536) (65,868) (71,100)Total comprehensive loss (80,307) (73,450) (66,536) (65,868) (71,100)Total comprehensive loss attributable

to the Australian Government (80,307) (73,450) (66,536) (65,868) (71,100)

Note: Impact of net cash appropriation arrangements 2015-16 2016-17 2017-18 2018-19 2019-20

$'000 $'000 $'000 $'000 $'000Total comprehensive loss excluding

depreciation/amortisation expenses previously funded through revenue appropriations (29,547) (26,732) (19,158) (17,100) (17,100)

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 50,760 46,718 47,378 48,768 54,000

Total comprehensive loss - as per the Statement of comprehensive

income (80,307) (73,450) (66,536) (65,868) (71,100)

Prepared on Australian Accounting Standards basis.(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation

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

73


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

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

ASSETS Financial assets

Cash and cash equivalents 1,772 1,772 1,772 1,772 1,772 Trade and other receivables 74,871 65,239 63,181 63,181 63,181 Accrued revenue - goods and services 2,657 2,657 2,657 2,657 2,657

Total financial assets 79,300 69,668 67,610 67,610 67,610 Non-financial assets

Buildings 245,921 231,191 215,215 200,543 191,701 Property, plant and equipment 179,107 307,860 437,413 503,714 591,225 Intangibles 16,904 20,548 25,157 22,780 15,989 Inventories 8,278 8,278 8,278 8,278 8,278 Prepayments 5,360 5,360 5,360 5,360 5,360

Total non-financial assets 455,570 573,237 691,423 740,675 812,553 Total assets 534,870 642,905 759,033 808,285 880,163 LIABILITIES Payables

Suppliers 11,124 11,124 11,124 11,124 11,124 Grants 125 125 125 125 125 Other payables 5,904 5,904 5,904 5,904 5,904

Total payables 17,153 17,153 17,153 17,153 17,153 Provisions

Employee provisions 65,841 65,841 65,841 65,841 65,841 Antarctic make good provisions (a) 499,701 516,801 533,901 551,001 568,101 Other provisions 7,959 7,959 7,959 7,959 7,959

Total provisions 573,501 590,601 607,701 624,801 641,901 Total liabilities 590,654 607,754 624,854 641,954 659,054 Net assets (a) (55,784) 35,151 134,179 166,331 221,109 EQUITY (b) Parent entity interest

Contributed equity 270,057 434,442 600,006 698,026 823,904 Reserves 326,227 326,227 326,227 326,227 326,227

Accumulated deficit (652,068) (725,518)

(792,054)

(857,922)

(929,022)

Total parent entity interest (55,784) 35,151 134,179 166,331 221,109 Total equity (55,784) 35,151 134,179 166,331 221,109

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 in 2015-16. 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.

74


Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2016-17)

Retained earnings

$'000

Asset revaluation

reserve$'000

Contributed equity/ capital$'000

Total equity

$'000

Opening balance as at 1 July 2016

Balance carried forward from previous period (652,068) 326,227 270,057 (55,784)

Adjusted opening balance (652,068) 326,227 270,057 (55,784)

Comprehensive incomeDeficit for the period (73,450) - - (73,450)Total comprehensive income (73,450) - - (73,450)

of which:Attributable to the Australian Government (73,450) - - (73,450)

Transactions with ownersContributions by owners

Equity Injection - Appropriations - - 139,498 139,498 Departmental Capital Budget - - 24,887 24,887

Sub-total transactions with owners - - 164,385 164,385

Estimated closing balance as at 30 June 2017 (725,518) 326,227 434,442 35,151

Closing balance attributable to the

Australian Government (725,518) 326,227 434,442 35,151

Prepared on Australian Accounting Standards basis.

75


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


$'000

2016-17Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIES Cash received

Appropriations 454,570 421,676 404,579 399,971 409,347 Sale of goods and rendering of

services 39,960 31,204 24,212 24,212 24,212

Other 253 - - - - Total cash received 494,783 452,880 428,791 424,183 433,559 Cash used

Employees 211,617 200,286 193,342 189,574 187,822 Suppliers 188,830 174,062 161,522 160,091 172,589 Grants 10,756 4,099 1,901 1,050 1,050 Payments to Director of National Parks 40,470 42,829 47,414 48,856 47,486 s74 Receipts transferred to OPA 39,960 31,204 24,212 24,212 24,212 Other 3,150 400 400 400 400

Total cash used 494,783 452,880 428,791 424,183 433,559 Net cash used by operating activities - - - - - INVESTING ACTIVITIES Cash used

Purchase of property, plant and equipment and intangibles 117,287 164,385 165,564 98,020 125,878

Total cash used 117,287 164,385 165,564 98,020 125,878

Net cash used by investing activities (117,287) (164,385)

(165,564) (98,020) (125,878)

FINANCING ACTIVITIES Cash received

Contributed equity 92,175 139,498 140,530 72,794 100,401 Departmental capital budget 25,112 24,887 25,034 25,226 25,477

Total cash received 117,287 164,385 165,564 98,020 125,878 Net cash from financing activities 117,287 164,385 165,564 98,020 125,878 Net increase (decrease)

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

beginning of the reporting period 1,772 1,772 1,772 1,772 1,772 Cash and cash equivalents at the

end of the reporting period 1,772 1,772 1,772 1,772 1,772 Prepared on Australian Accounting Standards basis.

76


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

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS Departmental Capital Budget - Bill 1 25,112 24,887 25,034 25,226 25,477 Equity injections - Bill 2 91,891 139,498 140,530 72,794 100,401

Total new capital appropriations 117,003 164,385 165,564 98,020 125,878 Provided for:

Purchase of non-financial assets 117,003 164,385 165,564 98,020 125,878 Total Items 117,003 164,385 165,564 98,020 125,878 PURCHASE OF NON-FINANCIAL

ASSETS Funded by capital appropriations (a) 92,175 139,498 140,530 72,794 100,401 Funded by capital appropriations -

DCB (b) 25,112 24,887 25,034 25,226 25,477

TOTAL 117,287 164,385 165,564 98,020 125,878 RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases (a) 117,287 164,385 165,564 98,020 125,878 Total cash used to

acquire assets 117,287 164,385 165,564 98,020 125,878 Prepared on Australian Accounting Standards basis.(a) Includes both current Appropriation Bill (No.2) and prior Appropriation Act 2/4/6 appropriations.(b) Includes purchases funded by current and previous years' Departmental Capital Budgets.

77


Table 3.6: Statement of asset movements (Budget year 2016-17)

Buildings

$'000

Other property, plant and

equipment$'000

Computer software

and intangible

s$'000

Total

$'000As at 1 July 2016

Gross book value 299,996 219,886 72,390 592,272 Accumulated depreciation/amortisation

and impairment (54,075) (40,779) (55,486) (150,340)Opening net book balance 245,921 179,107 16,904 441,932 CAPITAL ASSET ADDITIONSEstimated expenditure on new or

replacement assetsBy purchase - appropriation equity (a) - 138,052 1,446 139,498 By purchase - appropriation ordinary

annual services (b) 7,635 8,806 8,446 24,887 Total additions 7,635 146,858 9,892 164,385 Other movements

Depreciation/amortisation expense (22,365) (18,105) (6,248) (46,718)Total other movements (22,365) (18,105) (6,248) (46,718)As at 30 June 2017

Gross book value 307,631 366,744 82,282 756,657 Accumulated depreciation/amortisation

and impairment (76,440) (58,884) (61,734) (197,058)Closing net book balance 231,191 307,860 20,548 559,599

Prepared on Australian Accounting Standards basis.(a) "Appropriation equity" refers to equity injections appropriations provided through Appropriation Bill (No.2)

2016-17.(b) "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1)

2016-17 for Departmental Capital Budgets.

78


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


$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Suppliers 190,165 188,462 163,218 149,585 116,252 Grants 326,224 314,698 266,073 244,708 286,404 Depreciation and amortisation 1,088 83 12 12 12 Payments to corporate entities 153,942 190,258 109,998 69,759 22,572 Other expenses 5,310 1,402 1,402 1,427 -

Total expenses administered on behalf of Government 676,729 694,903 540,703 465,491 425,240

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

Other taxes 985 1,498 1,498 1,498 1,498 Total taxation revenue 985 1,498 1,498 1,498 1,498 Non-taxation revenue

Sale of goods and rendering of services 6,490 - - - -

Fees and fines 20,831 16,070 17,399 17,818 18,102 Interest - state and territory

government loans 97 38 14 3 - Other revenue 2,517 1,096 3,310 591 4,224

Total non-taxation revenue 29,935 17,204 20,723 18,412 22,326 Total own-source revenues

administered on behalf of Government 30,920 18,702 22,221 19,910 23,824

Gains Other gains 129,576 407,656 548,308 324,166 250,000

Total gains administered on behalf of Government 129,576 407,656 548,308 324,166 250,000

Total own-sourced income administered on behalf of Government 160,496 426,358 570,529 344,076 273,824

Net Cost of/(contribution by) services 516,233 268,545 (29,826) 121,415 151,416

Surplus (deficit) after income tax (516,233) (268,545) 29,826 (121,415

)(151,416

)

Total comprehensive income (loss) (516,233) (268,545) 29,826 (121,415

)(151,416

)Prepared on Australian Accounting Standards basis.

79


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

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents - - - - - Taxation receivables 274 274 274 274 274 Trade and other receivables 5,792 5,452 5,284 5,224 5,224

Other investments 1,772,168 1,944,476 2,321,522 3,065,397 3,711,395

Total financial assets 1,778,234 1,950,202 2,327,080 3,070,895 3,716,893

Non-financial assets Heritage and cultural assets 1,036 1,024 1,012 1,000 988

Water assets 2,541,650 2,949,306 3,497,614 3,821,780 4,071,780

Computer software 71 - - - - Inventories 12,137 12,137 12,137 12,137 12,137 Prepayments 1,366 1,366 1,366 1,366 1,366

Total non-financial assets 2,556,260 2,963,833 3,512,129 3,836,283 4,086,271

Total assets administered on

behalf of Government 4,334,494 4,914,035 5,839,209 6,907,178 7,803,164

LIABILITIES Payables

Suppliers 9,437 9,437 9,437 9,437 9,437 Grants 6,240 6,240 6,240 6,240 6,240 Other 792 792 792 792 792


Other provisions 74 74 74 74 74 Total provisions 74 74 74 74 74 Total liabilities administered on

behalf of Government 16,543 16,543 16,543 16,543 16,543

Net assets 4,317,951 4,897,492 5,822,666 6,890,635 7,786,621


80


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


$'000

2016-17Budget

$'000


$'000


$'000


$'000


Sales of goods and rendering of services 4,677 - - - -

Interest 97 38 14 3 - Taxes 985 1,498 1,498 1,498 1,498 Fees and fines 20,831 16,070 17,399 17,818 18,102 Net GST received 1,475 - - - - Other 2,517 1,096 3,310 591 4,224

Total cash received 30,582 18,702 22,221 19,910 23,824 Cash used

Suppliers 188,567 188,462 163,218 149,585 116,252 Grants 327,484 314,698 266,073 244,708 286,404 Payments to corporate entities 153,942 190,258 109,998 69,759 22,572 Other 5,310 1,402 1,402 1,427 -

Total cash used 675,303 694,820 540,691 465,479 425,228 Net cash used by operating

activities (644,721) (676,118) (518,470) (445,569) (401,404)INVESTING ACTIVITIES Cash received

Repayments of advances and loans 786 340 168 60 -

Investments 388,873 40,823 187,258 99,192 153,187 Total cash received 389,659 41,163 187,426 99,252 153,187 Cash used

Purchase of intangibles 3,860 - - - - Corporate entity investments 258,873 176,960 524,710 805,292 764,501

Total cash used 262,733 176,960 524,710 805,292 764,501 Net cash from/(used by) investing

activities 126,926 (135,797) (337,284) (706,040) (611,314)Net decrease in cash held (517,795) (811,915) (855,754) (1,151,609) (1,012,718)Cash and cash equivalents at

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

- Appropriations 407,947 411,412 260,819 219,099 166,529 - Special Accounts 548,315 2,442,010 2,785,943 1,033,159 1,006,601

Total cash from Official Public Account 956,262 2,853,422 3,046,762 1,252,258 1,173,130

Cash to Official Public Account for: - Appropriations (7,395) (5,152) (6,256) (6,526) (6,712)- Special Accounts (431,072) (2,036,355) (2,184,752) (94,123) (153,700)

Total cash to Official Public Account (438,467) (2,041,507) (2,191,008) (100,649) (160,412)Cash and cash equivalents at end

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

81


Table 3.10: Administered capital budget statement (for the period ended 30 June)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS Administered Assets and

Liabilities - Bill 2 3,860 - - - - Total new capital appropriations 3,860 - - - -

Provided for: Purchase of non-financial assets 3,860 - - - -

Total Items 3,860 - - - - PURCHASE OF NON-FINANCIAL

ASSETS Funded by capital appropriations (a) 3,860 - - - -

TOTAL AMOUNT SPENT 3,860 - - - - RECONCILIATION OF CASH USED TO

ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total accrual purchases 3,860 - - - - Total cash used to acquire assets 3,860 - - - -

Prepared on Australian Accounting Standards basis.(a) From prior Appropriation Act 2/4/6 appropriations.

82


Table 3.11: Statement of administered asset movements (Budget year 2016-17)

Property, plant and equipmen

t

Heritage and

cultural assets

Water assets

Computer

software

Total

$'000 $'000 $'000 $'000 $'000As at 1 July 2016Gross book value 104 1,060 3,030,409 4,082 3,035,655 Accumulated depreciation,

amortisation and impairment (104) (24) (488,759) (4,011) (492,898)Opening net book balance - 1,036 2,541,650 71 2,542,757

CAPITAL ASSET ADDITIONSOther movementsAssets received free of charge (a) - - 407,656 - 407,656 Depreciation/amortisation expense - (12) - (71) (83)Total other movements - (12) 407,656 (71) 407,573

As at 30 June 2017Gross book value 104 1,060 3,438,065 4,082 3,443,311 Accumulated depreciation,

amortisation and impairment (104) (36) (488,759) (4,082) (492,981)Closing net book balance - 1,024 2,949,306 - 2,950,330

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

83



84

AUSTRALIAN RENEWABLE ENERGY AGENCY

Section 1: Entity overview and resources...............................................................871.1 Strategic direction statement..........................................................................871.2 Entity resource statement..............................................................................881.3 Budget measures...........................................................................................90

Section 2: Outcomes and planned performance.....................................................912.1 Budgeted expenses and performance for Outcome 1....................................92

Section 3: Budgeted financial statements...............................................................963.1 Budgeted financial statements.......................................................................963.2.1 Budgeted financial statements tables............................................................97

86

Australian Renewable Energy Agency Budget Statements

AUSTRALIAN RENEWABLE ENERGY AGENCY



The Australian Renewable Energy Agency is a Corporate Commonwealth Entity under the Public Governance, Performance and Accountability Act 2013 and administers Government financial assistance for renewable energy and related technologies in line with the Australian Renewable Energy Agency Act 2011 (ARENA Act). The Agency commenced operations on 1 July 2012, with the objectives of improving the competitiveness of renewable energy technologies and increasing the supply of renewable energy in Australia. Through this, the Agency provides options to meet future emission reduction targets at lower cost.

The Agency’s responsibilities 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 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 about these technologies and the renewable energy industry.

A significant new function for the Agency for 2016-17 is the $1 billion Clean Energy Innovation Fund, which the Agency will jointly manage with the Clean Energy Finance Corporation. The Clean Energy Innovation Fund is expected to cover the full range of clean energy technology options within the Corporation’s mandate, and to offer debt and equity.

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

88





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


89


Table 1.1: Australian Renewable Energy Agency resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000

Opening balance/cash reserves at 1 July 469 469 Funds from Government

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

Total annual appropriations - 1,221 Amounts received from related entities

Amounts from portfolio department (b) 168,613 189,037 Total amounts received from related entities 168,613 189,037 Total funds from Government 168,613 190,258 Total net resourcing for Australian Renewable Energy Agency 169,082 190,727 2015-16 2016-17Average staffing level (number) (c) 2 2 Available appropriations according to the ARENA Act 363,293 251,630 Less: estimated actual expenses (168,613) (190,258)Available appropriations carried forward (d) 194,680 61,372

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) 2016-17.(b) Funding provided by the Portfolio Department that is not specified within the Annual Appropriation Bills

as a payment to Australian Renewable Energy Agency.(c) The Agency only has two employees, the CEO and CFO. Under section 62 of the ARENA Act 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 and includes the rollover of unspent funds of $194.7 million from 2015-16 to 2016-17.

90


1.3 BUDGET MEASURES

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

Table 1.2: Australian Renewable Energy Agency 2016-17 Budget measuresPart 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program

2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Expense measures Clean and Renewable Energy 1.1 Innovation – Clean Energy Finance Corporation and the Australian Renewable EnergyAgency

Departmental expenses - 5,348 4,902 7,690 5,367

Total - 5,348 4,902 7,690 5,367 Total expense measures

Departmental - 5,348 4,902 7,690 5,367

Total - 5,348 4,902 7,690 5,367 Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

91






92



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 CorporationProgram 1.1 – Clean Energy Finance CorporationContribution to Outcome 1 made by linked programsThe Clean Energy Innovation Fund will be jointly managed by the Clean Energy Finance Corporation and the Australian Renewable Energy Agency, drawing on their complementary experience and expertise. The Clean Energy Innovation Fund has up to $100 million a year available from 2016-17 to 2025-26 from the Clean Energy Finance Corporation, 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 EnvironmentProgram 2.1 – Reducing Australia’s Greenhouse Gas EmissionsProgram 2.3 – Renewable Energy Technology DevelopmentContribution to Outcome 1 made by linked programsThe Department of the Environment works with the Australian Renewable Energy Agency on renewable energy and emissions reduction policy.

93



This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program.

Table 2.1.1: Budgeted expenses for Outcome 1

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.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Australian Renewable Energy AgencyRevenue from Government (a)

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

Payment from related entities 157,302 180,028 100,982 62,424 16,108 Expenses not requiring appropriation

in the budget year 10,518 10,676 7,600 5,521 3,369 Total expenses for Program 1.1 167,820 191,925 110,655 70,408 22,345 Outcome 1 totals by resource typeRevenue from Government (a)

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


in the budget year 10,518 10,676 7,600 5,521 3,369 Total expenses for Outcome 1 167,820 191,925 110,655 70,408 22,345

2015-16 2016-17Average staffing level (number) (b) 2 2

(a) Budgeted expenses are based on current Government policy which is to amend the ARENA Act to reduce funding available to the Agency.

(b) The Department provides staff resources to the Agency free of charge under section 62 of the ARENA Act. 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.

94




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

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 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.



2015-1611 Number of projects supported to improve uptake of renewable energy.

Target: 21312

Forecast: 211

11 The Agency was part of the Industry and Science Portfolio in 2015-16 before transferring to the Environment Portfolio in October 2015. The performance criteria and target for 2015-16 were contained in the 2015-16 Industry and Science Portfolio Budget Statements. The performance measures and targets for 2016-17 and following years are summarised from those published in the Agency’s Corporate Plan in August 2015.

12 The 2015-16 Industry and Science Portfolio Budget Statements set a target of 213 active projects during the year for the ARENA Program, reflecting some new projects offset by some project completions.

95


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

2016-17, 2017-18 and 2018-19

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. 13

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.

Strategic Investment: Jointly manage the Clean Energy Innovation Fund

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

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 published.

Purposes (b) The Agency’s main objective, as set out in the ARENA Act is to: improve the competitiveness of renewable energy technologies increase the supply of renewable energy in Australia.The Agency takes a long-term view of its objectives, with the aim of having maximum impact from 2020 to 2040. Within this range, the Agency aims to both: demonstrate renewable energy’s role in addressing Australia’s current energy

issues and/or provide renewable energy technology options for the long term.Together with financial assistance for energy efficiency and other low-emissions technologies, delivering on these objectives provides options to meet future emission reduction targets at lower cost.

Material changes to Program 1 resulting from the following measures:

Measure title – Clean and Renewable Energy Innovation – Clean Energy Finance Corporation and the Australian Renewable Energy Agency

(a) New or modified performance criteria that reflect new or materially changed programs are shown in italics.(b) Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan.

13 The Agency’s General Funding Strategy is produced annually, to cover the following three years, and is provided to the Minister for the Environment 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

96

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





3.1.1 Differences between entity resourcing and financial statementsThe 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 statementsThe Agency did not present its budgeted financial statements in 2014-15 and 2015-16 as a result of the Government’s intention to abolish the Agency. The budget measures to retain the Agency and establish the Clean Energy Innovation Fund mean that in 2016-17 the Agency will continue to administer its existing grant portfolio and new projects (including a scheduled Large Scale Solar competitive round of $100 million), and jointly manage the Fund with the Clean Energy Finance Corporation.

The budgeted financial statements for 2016-17 and forward years reflect the current Government policy. Funding from Government is estimated to match the outstanding commitments of the Agency’s existing grant portfolio over the four years, and the planned investments in the Large Scale Solar round.

The Agency is forecasting budgeted surpluses in 2016-17 and the forward estimates. The surplus represents the investment calls on the 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.

Under the ARENA Act, unspent funds of $194.7 million from 2015-16 are carried forward to 2016-17 and available to the Agency.

97




2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 977 1,226 1,232 1,247 1,247 Suppliers 10,012 15,188 11,525 12,126 7,555 Grants 146,228 164,750 90,213 51,429 10,089 Depreciation and amortisation 85 85 85 85 85 Other expenses 10,518 10,676 7,600 5,521 3,369 Total expenses 167,820 191,925 110,655 70,408 22,345 LESS: OWN-SOURCE INCOME Gains Resources received free of charge 10,518 10,676 7,600 5,521 3,369 Total gains 10,518 10,676 7,600 5,521 3,369 Total own-source income 10,518 10,676 7,600 5,521 3,369

Net (cost of)/contribution by services (157,302)(181,249

)(103,055

) (64,887) (18,976)Revenue from Government 168,613 190,258 109,998 69,759 22,572

Surplus/(deficit) attributable to the Australian Government 11,311 9,009 6,943 4,872 3,596 Total comprehensive income/(loss) 11,311 9,009 6,943 4,872 3,596 Total comprehensive income/(loss) attributable to the Australian Government 11,311 9,009 6,943 4,872 3,596


98


Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2015-16

Estimated actual

$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 469 556 641 725 809Trade and other receivables 3,737 3,737 3,737 3,737 3,737Other investments 24,454 33,461 40,404 45,277 48,874Other financial assets 329 329 329 329 329


Intangibles 633 548 463 378 293Total non-financial assets 633 548 463 378 293

Total assets 29,622 38,631 45,574 50,446 54,042

LIABILITIES Payables

Suppliers 1,036 1,036 1,036 1,036 1,036Grants 3,186 3,186 3,186 3,186 3,186Other payables 2 2 2 2 2


Employee provisions 188 188 188 188 188Total provisions 188 188 188 188 188

Total liabilities 4,412 4,412 4,412 4,412 4,412

Net assets 25,210 34,219 41,162 46,034 49,630

EQUITY* Parent entity interest

Retained surplus (accumulated deficit) 25,210 34,219 41,162 46,034 49,630 Total parent entity interest 25,210 34,219 41,162 46,034 49,630 Total equity 25,210 34,219 41,162 46,034 49,630

* ‘Equity’ is the residual interest in assets after the deduction of liabilities. Prepared on Australian Accounting Standards basis.

99



Retained earnings

$'000

Total equity $'000

Opening balance as at 1 July 2016Balance carried forward from previous period 25,210 25,210

Adjusted opening balance 25,210 25,210 Comprehensive income

Surplus/(deficit) for the period 9,009 9,009 Total comprehensive income 34,219 34,219

of which: Attributable to the Australian Government 34,219 34,219

Estimated closing balance as at 30 June 2017 34,219 34,219 Closing balance attributable to the Australian Government 34,219 34,219


100



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Receipts from Government 168,613 190,258 109,998 69,759 22,572 Total cash received 168,613 190,258 109,998 69,759 22,572 Cash used

Employees 977 1,226 1,232 1,247 1,247 Suppliers 10,012 15,188 11,525 12,126 7,555 Grants 146,228 164,750 90,213 51,429 10,089

Total cash used 157,217 181,164 102,970 64,802 18,891 Net cash from/(used by) operating activities 11,396 9,094 7,028 4,957 3,681 INVESTING ACTIVITIES Cash used

Investments 11,396 9,007 6,943 4,873 3,597 Total cash used 11,396 9,007 6,943 4,873 3,597 Net cash from/(used by) investing activities (11,396) (9,007) (6,943) (4,873) (3,597)Net increase/(decrease) in cash held - 87 85 84 84

Cash and cash equivalents at the beginning of the reporting period 469 469 556 641 725

Cash and cash equivalents at the end of the reporting period 469 556 641 725 809


101



Computer software

and intangibles

$'000Total$'000

As at 1 July 2016Gross book value 718 718 Accumulated depreciation/amortisation and impairment (85) (85)

Opening net book balance 633 633 Other movements Depreciation/amortisation expense (85) (85)Total other movements (85) (85)

As at 30 June 2017Gross book value 718 718 Accumulated depreciation/ amortisation and impairment (170) (170)

Closing net book balance 548 548 Prepared on Australian Accounting Standards basis.

102



104

BUREAU OF METEOROLOGY

Section 1: Entity overview and resources.............................................................1071.1 Strategic direction statement........................................................................1071.2 Entity resource statement............................................................................1091.3 Budget measures.........................................................................................111

Section 2: Outcomes and planned performance...................................................1122.1 Budgeted expenses and performance for Outcome 1..................................113

Section 3: Budgeted financial statements.............................................................1173.1 Budgeted financial statements.....................................................................1173.2.1 Budgeted financial statements tables..........................................................119

106

Bureau of Meteorology Budget Statements

BUREAU OF METEOROLOGY



The Bureau of Meteorology provides Australians with the environmental intelligence they need to manage and live within their natural environment, encompassing the atmosphere, oceans, water and land. To achieve this, the Bureau:

• monitors and reports on current environmental conditions

• provides forecasts, warnings and long-term outlooks on weather, climate, water and other environmental phenomena

• analyses and explains trends in environmental data

• fosters greater public understanding and use of environmental intelligence, and

• extends its understanding of, and ability to forecast, Australia’s weather, climate and water resources.

The Bureau will continue to support the safety, sustainability, security, well-being and prosperity of all Australians, contributing to a strong and productive economy and helping to meet national challenges. The Bureau’s work directly informs decisions by governments, industry and the community and supports all Australians, the Australian Defence Force and key sectors such as emergency management, aviation, transport, water management, agriculture and environmental management.

Since 2008 the Bureau, in cooperation with its partners, has developed a comprehensive, reliable and up-to-date picture of Australia’s water resources. These products and services assist in managing Australia’s major challenges of sustainable water supply in the face of a changing climate and rising demand for water.

The Bureau’s Strategic Plan 2015–20 sets out directions for its people, operations, infrastructure, observing systems, information systems, and science and technology, and will guide the work of the organisation over this period.

108


The Plan encompasses four key strategies that will maintain and further build on its world-class services and help Australians respond to the challenges of the 21st century:

• enhancing product utilisation by providing the products and services that users need in an accessible and effective format

• lowering the cost of operations to increase efficiency and improve value and strengthen the organisation’s sustainability

• delivering higher-value functions that provide the greatest benefit for Australia, and

• growing business development capability to diversify external revenue streams and increase impact.

Under the Stronger Farmers, Stronger Economy — new drought management framework measure from 2015-16 to support drought preparedness and drought affected local communities, the Bureau will continue to improve the seasonal climate forecast service for the Australian agricultural sector. This service will provide more regular, detailed and accurate climate forecasts.

Commissioning of the Bureau’s new supercomputer and data centre will continue to be a major priority for 2016-17. The new high performance computing facilities will operate for five years from mid-2016, ensuring the Bureau will provide high quality forecasts and warnings, delivering more accurate, responsive and up-to-date information with greater certainty, and meet the growing needs of stakeholders into the future.

In 2016-17, the Bureau will complete its implementation of the Australian Government’s response to the Review of the Bureau of Meteorology's capacity to respond to future extreme weather and natural disaster events and to provide seasonal forecasting services, which was released in 2013. Delivery of this initiative is improving the Bureau's capacity to respond to extreme weather events by reinforcing the operational delivery of forecasts and warnings and enhancing the Bureau’s national capabilities. Funds have been used to boost frontline forecaster numbers, establish an extreme weather desk within the Bureau's National Operations Centre, and develop and operationalise a next-generation flood forecasting system. The Bureau will continue work to identify and progressively adopt nationally consistent standards for supporting emergency service organisations across all States and Territories. It will be developing, testing and operationalising a new storm surge prediction system.

109






110


Table 1.1: Bureau of Meteorology resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000


Prior year appropriations available (b) 95,521 82,006 Departmental appropriation 213,977 227,853 s 74 retained revenue receipts (c) 78,441 70,138 Departmental capital budget (d) 44,047 42,125

Annual appropriations - other services - non-operating (e) Prior year appropriations available 9,700 - Equity injection 50,994 23,642

Total departmental annual appropriations 492,680 445,764 Total departmental resourcing 492,680 445,764 Total resourcing for Bureau of Meteorology 492,680 445,764 2015-16 2016-17Average staffing level (number) 1,581 1,602 Third party payments from and on behalf of other entities

2015-16 Estimated

actual $'000

2016-17 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) 6,594 6,461

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) 2016-17.(b) Excludes $0.126 million subject to administrative quarantine by Finance, withheld under section 51 of the

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

Accountability Act 2013.(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of

ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(E) Appropriation Bill (No. 2) 2016-17.

111


1.3 BUDGET MEASURES

There are no Budget measures relating to the Bureau in 2016-17.

112






113



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, Department of Agriculture and Water Resources and the Attorney-General's Department.

114




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 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.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Bureau of MeteorologyDepartmental expenses

Departmental appropriation 213,977 227,853 185,146 187,885 186,916 s 74 Retained revenue receipts (a) 75,546 69,538 63,750 61,918 61,758 Expenses not requiring appropriation in the Budget year (b) 77,584 70,558 70,558 70,558 70,558

Departmental total 367,107 367,949 319,454 320,361 319,232 Total expenses for program 1.1 367,107 367,949 319,454 320,361 319,232

Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 213,977 227,853 185,146 187,885 186,916 s 74 Retained revenue receipts (a) 75,546 69,538 63,750 61,918 61,758 Expenses not requiring appropriation in the Budget year (b) 77,584 70,558 70,558 70,558 70,558

Departmental total 367,107 367,949 319,454 320,361 319,232 Total expenses for Outcome 1 367,107 367,949 319,454 320,361 319,232

2015-16 2016-17Average staffing level (number) (c) 1,581 1,602

(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.(b) Expenses not requiring appropriation in the Budget year comprise depreciation expenses, amortisation

expenses, audit fees and an approved operating loss for the 2015-16 year.(c) ASL numbers include staff used for the purpose of Asset construction (Capitalised staff).

115




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 Take and gather observations of weather, water, ocean, climate and space conditions.

Prepare and disseminate weather, water, ocean, climate, and space variability forecasts to the Australian community and key sectors, including emergency services, aviation, the Australian Defence Force, maritime, agriculture and water management sectors.

Issue warnings and advisories for heavy rain, hail, strong winds, floods, tropical cyclones, bushfire weather, heatwaves, volcanic ash, heavy seas, tsunamis, aviation hazards and space weather disturbances.

Provide and maintain public access to national weather, water, ocean, climate and space weather data sets and information.

Provide advice on Australia’s weather, water, ocean, climate and space matters.

Undertake operational research and development leading to efficiency and effectiveness improvements in the Bureau’s weather, water, ocean, climate and space services.

Participate in international collaboration with overseas hydrological and meteorological service providers and international bodies including the World Meteorological Organization, International Civil Aviation Organization, Intergovernmental Oceanographic Commission of UNESCO and International Maritime Organization.


Year Key Performance Indicators Forecast against indicators

2015-16 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 Bureau is on track to meet the 2015-16 key performance indicators.Evidence of achievement will be described in the Bureau's Annual Performance Statement 2015-16 in line with the evidence targets described in the 2015-16 Corporate Plan.

116


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.


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 obligations are met and its interests are protected and advanced through effective engagement and the maintenance and development of international agreements that deliver improved outcomes for Australia.

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 2016-17 and reported in the Bureau’s Annual Performance Statement 2016-17.


Purposes To provide Australia with products and services across the weather, water, ocean, climate, and space domains to protect lives and property, support national security, contribute to a strong and productive economy and meet other national challenges.

117





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 2016–17, is provided below:

Budgeted Departmental Income Statement

Total revenue to the Bureau in 2016–17 is estimated to be $298.0 million, an increase of $5.6 million from the 2015–16 estimated actual. The movement in funding is the result of:

• funding associated with the 2015-16 measure Stronger Farmers, Stronger Economy – new drought management framework

• funding associated with the 2015-16 measure Bureau of Meteorology – improved data and services supporting supercomputer capability

• funding associated with the 2014-15 Budget measure Supercomputer

• funding associated with the 2013-14 Budget measure Resourcing Requirements in Response to the Munro Review

• funding associated with the 2013-14 Budget measure Website Advertising on a Permanent Basis

• funding associated with the Water for the Future initiative announced in the 2007-08 Budget

• increased funding for economic parameter adjustments

• reduced funding associated with cost recoverable projects and services

• reduced funding as a result of the increase in the efficiency dividend

118


• reduced funding as a result of the 2015-16 Whole of Government savings – PSSAP Administrative Costs.

Total expenses in 2016-17 are estimated to be $367.9 million, an increase of $0.8 million from the 2015–16 estimated actual. Whilst the Bureau is no longer funded for depreciation through Appropriation Bill 1 the expenditure is still recognised on the Income Statement.

Budgeted Departmental Balance Sheet

The Bureau’s anticipated budgeted equity position of $504.6 million in 2016-17 represents a decrease of $4.2 million from the 2015–16 estimated actual. The small decrease in equity is attributable to a small reduction in replacement capital spend funding and lower equity injection funding for measures compared to the 2015-16 year.

The Bureau’s major asset class, ‘property, plant and equipment’, is projected to increase slightly to a total of $365.1 million in 2016-17, due primarily to the increased Bureau property plant and equipment capital works offset by depreciation expense.

The Bureau’s primary liability continues to be accrued employee entitlements that total $68.4 million.

Schedule of Budgeted Assets and Liabilities Administered on behalf of Government

The Bureau has no administered assets or liabilities.

119




2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 180,982 184,390 160,035 159,872 160,756 Suppliers 112,754 109,071 84,920 85,975 83,949 Depreciation and amortisation 71,622 72,519 72,519 72,519 72,519 Write-down and impairment of assets 1 1 1 1 1 Other expenses 1,748 1,968 1,979 1,994 2,007 Total expenses 367,107 367,949 319,454 320,361 319,232 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 78,441 70,138 64,350 62,518 62,358 Total own-source revenue 78,441 70,138 64,350 62,518 62,358 Total own-source income 78,441 70,138 64,350 62,518 62,358

Net (cost of)/contribution by services (288,666)(297,811

)(255,104

)(257,843

)(256,874

)Revenue from Government 213,977 227,853 185,146 187,885 186,916 Surplus/(deficit) attributable to the Australian Government (74,689) (69,958) (69,958) (69,958) (69,958)Total comprehensive income/(loss) (74,689) (69,958) (69,958) (69,958) (69,958)Total comprehensive income/(loss) attributable to the Australian Government (74,689) (69,958) (69,958) (69,958) (69,958)

Note: Impact of net cash appropriation arrangements

2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations.

(5,028) 600 600 600 600 less depreciation/amortisation expenses previously funded through revenue appropriations (a) 69,661 70,558 70,558 70,558 70,558

Total comprehensive income/(loss) - as per the statement of comprehensive income

(74,689) (69,958) (69,958) (69,958) (69,958)Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation

Bill (No.1) revenue appropriations 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) provided through Appropriation Bill (No.1) equity appropriations. For information regarding Departmental Capital Budgets, please refer to Table 3.5 Departmental Capital Budget Statement.

120


Table 3.2: Budgeted departmental balance sheet (as at 30 June)2015-16

Estimated actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 57 57 57 57 57 Trade and other receivables 93,378 91,201 90,802 91,552 92,302 Other financial assets 3,724 3,724 3,724 3,724 3,724


Land and buildings 113,724 109,742 107,060 104,078 100,922 Property, plant and equipment 362,242 365,057 353,210 356,439 360,590 Intangibles 71,930 71,833 72,470 72,702 72,649 Inventories 7,634 7,634 7,634 7,634 7,634 Other non-financial assets 6,393 6,393 6,393 6,393 6,393


Suppliers 13,512 13,512 13,512 13,512 13,512 Other payables 47,115 47,115 47,115 47,115 47,115


Employee provisions 67,600 68,350 69,100 69,850 70,600 Other provisions 22,069 22,069 22,069 22,069 22,069

Total provisions 89,669 90,419 91,169 91,919 92,669 Total liabilities 150,296 151,046 151,796 152,546 153,296 Net assets 508,786 504,595 489,554 490,033 490,975 EQUITY* Parent entity interest

Contributed equity 629,543 695,310 750,227 820,664 891,564 Reserves 243,398 243,398 243,398 243,398 243,398

Retained surplus (accumulated deficit) (364,155)(434,113

)(504,071

)(574,029

)(643,987

)Total parent entity interest 508,786 504,595 489,554 490,033 490,975 Total equity 508,786 504,595 489,554 490,033 490,975

Prepared on Australian Accounting Standards basis.* ‘Equity’ is the residual interest in assets after deduction of liabilities.

121



Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000

Opening balance as at 1 July 2016

Balance carried forward from previous period (364,155) 243,398 629,543 508,786

Adjusted opening balance (364,155) 243,398 629,543 508,786

Comprehensive incomeSurplus/(deficit) for the period (69,958) - - (69,958)

Total comprehensive income (69,958) - - (69,958)Transactions with owners

Contributions by ownersEquity injection - Appropriation - - 23,642 23,642 Departmental Capital Budget - - 42,125 42,125

Sub-total transactions with owners - - 65,767 65,767

Estimated closing balance as at 30 June 2017 (434,113) 243,398 695,310 504,595

Closing balance attributable to the Australian Government

(434,113) 243,398 695,310 504,595


122



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 315,576 300,168 249,895 249,653 248,524 Sale of goods and rendering of services 78,441 70,138 64,350 62,518 62,358 Net GST received 8,310 8,310 8,310 8,310 8,310


Employees 185,617 183,640 159,285 159,122 160,006 Suppliers 114,502 111,039 86,899 87,969 85,956 Net GST paid 4,560 4,560 4,560 4,560 4,560 s74 Retained revenue receipts transferred to OPA 78,441 70,138 64,350 62,518 62,358

Total cash used 383,120 369,377 315,094 314,169 312,880 Net cash from/(used by) operating activities 19,207 9,239 7,461 6,312 6,312 INVESTING ACTIVITIES Cash received

Proceeds from sales of property, plant and equipment 25 1,225 1,225 1,225 1,225

Total cash received 25 1,225 1,225 1,225 1,225 Cash used

Purchase of property, plant and equipment and intangibles 110,522 72,480 59,852 74,223 74,686 Other 3,751 3,751 3,751 3,751 3,751

Total cash used 114,273 76,231 63,603 77,974 78,437 Net cash from/(used by) investing activities (114,248) (75,006) (62,378) (76,749) (77,212)FINANCING ACTIVITIES Cash received

Contributed equity 95,041 65,767 54,917 70,437 70,900 Total cash received 95,041 65,767 54,917 70,437 70,900 Net cash from/(used by) financing activities 95,041 65,767 54,917 70,437 70,900

Net increase/(decrease) in cash held- - - - -




123


Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2015-16


2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS Departmental Capital Budget - Bill 1 44,047 42,125 42,429 42,678 42,970 Equity injections - Bill 2 50,994 23,642 12,488 27,759 27,930


Purchase of non-financial assets 95,041 65,767 54,917 70,437 70,900 Total items 95,041 65,767 54,917 70,437 70,900

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 52,306 26,569 13,637 27,759 27,930 Funded by capital appropriation -

DCB (b) 53,335 42,125 42,429 42,678 42,970 Funded internally from departmental

resources (c) 4,881 3,786 3,786 3,786 3,786 TOTAL 110,522 72,480 59,852 74,223 74,686

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 110,522 72,480 59,852 74,223 74,686 Total cash used to acquire assets 110,522 72,480 59,852 74,223 74,686

Prepared on Australian Accounting Standards basis.(a) Includes both current Appropriation Bill (No.2) and prior Act 2/4/6 appropriations. (b) Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental Capital Budgets.(c) Includes the following sources of funding:

- s 74 Retained revenue receipts; and- proceeds from the sale of assets.

124



Land$'000

Buildings$'000

Other property, plant and equipmen

t$'000

Computer software

and intangibles

$'000Total$'000

As at 1 July 2016Gross book value 16,999 108,849 477,062 182,764 785,674

Accumulated depreciation/amortisation and impairment - (12,124) (114,820) (110,834) (237,778)

Opening net book balance 16,999 96,725 362,242 71,930 547,896 Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation equity (a) - - 25,248 1,321 26,569 By purchase - appropriation ordinary annual services (b) - 70 26,580 15,475 42,125 By purchase - other - 1,374 2,412 - 3,786 Total additions - 1,444 54,240 16,796 72,480 Other movements Depreciation/amortisation expense - (4,226) (51,400) (16,893) (72,519)Disposals (c) (1,200) (25) - (1,225)Total other movements - (5,426) (51,425) (16,893) (73,744)

As at 30 June 2017Gross book value 16,999 109,093 531,277 199,560 856,929 Accumulated depreciation/ amortisation and impairment - (16,350) (166,220) (127,727) (310,297)

Closing net book balance 16,999 92,743 365,057 71,833 546,632 Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill (No.2)

2016-17.(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1)

2016-17 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

(c) Net proceeds may be returned to the Official Public Account.

125



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

OWN-SOURCE INCOME Own-source revenue Non-taxation revenue

Sale of goods and rendering of services nfp nfp nfp nfp nfp

Total non-taxation revenue - - - - -

Total own-source revenue administered on behalf of Government

- - - - -

Total own-sourced income administered on behalf of Government

- - - - -

Total comprehensive income/(loss) - - - - - Prepared on Australian Accounting Standards basis.

126



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Sales of goods and rendering of services nfp nfp nfp nfp nfp

Total cash received - - - - - Net cash from/(used by) operating activities - - - - -

Net increase/(decrease) in cash held - - - - - Cash and cash equivalents at

beginning of reporting period - - - - -

Cash to Official Public Account for: - Appropriations nfp nfp nfp nfp nfp

Total cash to Official Public Account - - - - - Cash and cash equivalents at end of reporting period - - - - -


127



128

CLEAN ENERGY FINANCE CORPORATION




130

Clean Energy Finance Corporation Budget Statements

CLEAN ENERGY FINANCE CORPORATION



The Clean Energy Finance Corporation was established to facilitate increased flows of finance into the clean energy sector. The Corporation invests in accordance with its legislation, the Clean Energy Finance Corporation Act 2012 and the Clean Energy Finance Corporation Investment Mandate Direction 2015 (No.2) [Investment Mandate 2015 (No.2)], as issued by the Minister for the Environment and the Minister for Finance on 3 December 2015.

The Corporation is a Corporate Commonwealth Entity under the Public Governance, Performance and Accountability Act 2013. The Corporation has access to funding of $10 billion comprising appropriations to the Clean Energy Finance Corporation Special Account of $2 billion every 1 July from 2013 to 2017 inclusive, in accordance with section 46 of the CEFC Act.

The 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 CEFC Act. The Board reports to Parliament through its responsible Ministers.

The 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 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 CEFC Act requirement that on or after 1 July 2018, at least half of the funds invested must be invested in renewable energy.

The Corporation applies commercial rigour to investment decisions and seeks to develop a portfolio across the spectrum of clean energy technologies that, in aggregate, must have an acceptable but not excessive level of risk relative to the sector. The Corporation applies a commercial filter when making its investment decisions, focussing on projects and technologies at the later stages of development. The filter is not as

132


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 2015 (No.2) the responsible Ministers have directed the Board to target an average return of at least the five–year Australian Government bond rate, +4 to +5 per cent per annum as the benchmark return of the portfolio. Performance against this benchmark will be measured before operating expenses. The Portfolio benchmark return is a medium-term target and expected to be earned across the portfolio and over a period of time. In targeting the benchmark return:

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.

The ways in which the Corporation addresses financial barriers include:

• attracting finance to the Australian market to improve the flow and diversification of funds for investment into the sector

• assisting project proponents as an arranger, helping to develop the business case and introduce the proponents to other financiers to seek transaction close

• building knowledge and capacity within the finance sector by participating in transactions to de-risk the investment, familiarising financiers with new asset types or through reducing their size of exposure

• 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

133


• 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.

134







135


Table 1.1: Clean Energy Finance Corporation resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000

Opening balance/cash reserves at 1 July 149,577 147,337

Funds from other sources Interest and fees 44,044 50,977

Total funds from other sources 44,044 50,977 Total net resourcing for Clean Energy Finance Corporation 193,621 198,314 2015-16 2016-17Average staffing level (number) 65 65

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. The Corporation is not directly appropriated as it is a Corporate Commonwealth Entity as defined under the Public Governance, Performance and Accountability Act 2013. The Corporation does not hold the Special Account itself and therefore does not have a balance carried forward from earlier years. Under the CEFC Act, the Corporation is able to draw on the cumulative funds available in the Special Account, which are estimated to be $7.1 billion at 1 July 2016. (d)

136


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to Clean Energy Finance Corporation are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Clean Energy Finance Corporation 2016-17 Budget measuresPart 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program

2015-16$'000

2016-17$'000

2017-18$'000

2018-19$'000

2019-20$'000

Revenue measures Clean and Renewable Energy Innovation – Clean Energy Finance Corporation and the Australian Renewable Energy Agency (a) 1.1

Departmental revenues 2,978 10,124 26,343 62,970 106,148

Total 2,978 10,124 26,343 62,970 106,148 Total revenue measures

Departmental 2,978 10,124 26,343 62,970 106,148

Total 2,978 10,124 26,343 62,970 106,148 Expense measures Clean and Renewable Energy Innovation – Clean Energy Finance Corporation and the Australian Renewable Energy Agency (a) 1.1

Departmental expenses 1,960 50,928 61,391 64,693 68,051 Total 1,960 50,928 61,391 64,693 68,051 Total expense measures

Departmental 1,960 50,928 61,391 64,693 68,051

Total 1,960 50,928 61,391 64,693 68,051 Capital measures Clean and Renewable Energy Innovation – Clean Energy Finance Corporation and the Australian Renewable Energy Agency (a) 1.1

Departmental capital 50 515 505 1,005 1,015 Total 50 515 505 1,005 1,015 Total capital measures

Departmental 50 515 505 1,005 1,015

Total 50 515 505 1,005 1,015 Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.(a) The figures for this measure are presented on a fiscal basis and include significant non-cash expenses

and revenues (such as adjustments to reflect concessional loan charges). On an underlying cash basis, the net effect of this measure is positive over the forward estimates. Beyond the forward estimates, the measure is projected to have a positive impact on both an underlying cash and fiscal basis. An additional reconciliation has been added to the Comprehensive Income Statement at Table 3.1 to demonstrate the overall positive financial impact over the forward estimates on both a fiscal and underlying cash basis from the Corporation’s operations.

137






138



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

Australian Renewable Energy Agency Program 1.1 – Australian Renewable Energy Agency

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

Contribution to Outcome 1 made by linked programsThe Clean Energy Innovation Fund will be 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 $100 million a year available from 2016-17 to 2025-26 from the Corporation, for debt and equity investments in emerging clean energy projects and businesses that should allow projects at the later end of the innovation chain to deliver a financial return to taxpayers, in addition to the public good return of improving competitiveness of renewable energy and related technologies.The Department of the Environment works with the Corporation on renewable energy and emissions reduction policy.

139




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 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

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Clean Energy Finance CorporationExpenses not requiring appropriation in the budget year (a) - 2,386 - - - Revenues from other independent sources 34,421 54,741 68,831 80,024 93,082 Total expenses for Program 1.1 34,421 57,127 68,831 80,024 93,082 Total expenses for Outcome 1 34,421 57,127 68,831 80,024 93,082 2015-16 2016-17Average staffing level (number) 65 65

(a) Expenses not requiring appropriation in the budget year are non-cash charges in relation to concessional loans.

140




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 stakeholdersProgram 1.1 – Clean Energy Finance Corporation

Delivery The Corporation helps mobilise investment in renewable energy, low emissions and energy efficiency projects and technologies in Australia, as well as manufacturing businesses and services that produce the required inputs. It uses financial products and structures to address the barriers inhibiting investment and invests 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

a) 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

b) 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.

141





2015-16 Investment in renewable energy, low emissions and energy efficiency technologies

$ contracted during the year > $600m to $800m

Placement of funds into Australia’s clean energy sector

$ Deployed > $400mExpected carbon abatement from committed projects at ‘cost’ to the Corporation of < $0Financial leverage in projects financed >1:1

Performance against portfolio benchmark return set by the government in the 2015 Investment Mandate and 2015 Investment Mandate No. 2

Optimise portfolio returns while recognising Corporation’s public policy purpose, and taking all reasonable steps to achieve portfolio benchmark return target of the five–year Australian Government bond rate + 4 to + 5 per cent per annumOperating expenditure before concession and impairment < $26.5m or 4.35% of $ contracted

Dissemination of information to industry stakeholders and building industry capacity

Increase in value and diversity of tangible pipeline opportunitiesSignificant marketing and communications activity, media reach, conferences, events, symposiums and industry events participated inPositive stakeholder awareness and knowledge

2016-17 As for 2015-16, other than specific measures set out below:

Investment in renewable energy, low emissions and energy efficiency technologies

$ contracted during the year > $800m to $1bn


$ Deployed > $450m

Performance against portfolio benchmark return set by the government

Operating expenditure before concession and impairment < $31.3m or 4.0% of $ contracted

142



2017-18 and beyond As for 2016-17, other than specific measures set out below:

Investment in renewable energy, low emissions and energy efficiency technologies

$ contracted during the year > $1bn to $1.2bn


$ Deployed > $650m

Performance against portfolio benchmark return set by the government

Operating expenditure before concession and impairment < $36m or 4% of $ 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.” Ultimately, this objective is achieved through investing directly and indirectly and in doing so, encouraging and facilitating others to also invest in renewable energy, energy efficiency and low emissions technologies and projects.

Material changes to Program 1 resulting from the following measures:

Measure title – Clean and Renewable Energy Innovation – Clean Energy Finance Corporation and the Australian Renewable Energy Agency

This measure includes the retention of the Corporation and a direction to focus particular investments in debt and equity into specific areas.

143





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

In March 2016, the Government announced its intention to retain the Corporation. Accordingly, the financial statements below are prepared on the basis of the Corporation continuing to operate.

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).

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:

144


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 2015 (No.2), was issued on 3 December 2015 by the Hon Greg Hunt MP, Minister for the Environment, and Senator the Hon Mathias Cormann, Minister for Finance. The Government intends to issue a new Investment Mandate to include specific areas of focus. These areas of focus have direct implication on the likely rate of return that is achievable in the portfolio, the amount of risk that the

145


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.

The budget and forecasts have been prepared on the basis of the best available estimates as well as an assumption of stability in and continuity of the policy environment.

The private sector has been able to refinance certain of the Corporation’s investments once they have been de-risked and the commercial sector is able to confidently invest. Given the current low interest rate environment in particular, there have been a number of the Corporation’s investments that, for example having completed construction, or obtained contractual certainty or operated successfully for a period, are then sufficiently de-risked and able to be financed by the commercial banks. This has resulted in some of the Corporation’s most profitable loans having been given up to the private sector.

146




2015-16 Estimated

actual$'000

2016-17Budget

$'000

2017-18 Forward estimat

e$'000


$'000


$'000

EXPENSES Employee benefits 17,999 22,393 24,534 26,436 28,177 Suppliers 5,627 8,205 8,417 8,733 9,032 Depreciation and amortisation 625 742 792 850 905 Write-down and impairment of assets 162 4,387 6,388 13,305 21,628 Losses from asset sales 8 - - - - Concessional loan charges 10,000 21,400 28,700 30,700 33,340 Total expenses 34,421 57,127 68,831 80,024 93,082 LESS: OWN-SOURCE INCOME Own-source revenue Interest and fees 48,509 54,741 73,584 106,542 149,291 Dividends 30 - - - - Total own-source revenue 48,539 54,741 73,584 106,542 149,291 Total own-source income 48,539 54,741 73,584 106,542 149,291 Net (cost of)/contribution by services 14,118 (2,386) 4,753 26,518 56,209

Surplus/(deficit) attributable to the Australian Government 14,118 (2,386) 4,753 26,518 56,209 OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus 2,105 78 78 78 78 Total other comprehensive income 2,105 78 78 78 78 Total comprehensive income/(loss) 16,223 (2,308) 4,831 26,596 56,287

Total comprehensive income/(loss) attributable to the Australian Government 16,223 (2,308) 4,831 26,596 56,287


147


Reconciliation of the impact of significant non-cash income and charges

2015-16 Estimated

actual$'000

2016-17Budget

$'000


e$'000


$'000


$'000

ADD SIGNIFICANT NON-CASH CHARGES Concessional loan charge 10,000 21,400 28,700 30,700 33,340 Provision for asset impairment 162 4,387 6,388 13,305 21,628 Total significant non-cash charges 10,162 25,787 35,088 44,005 54,968 LESS SIGNIFICANT NON-CASH REVENUE Unwind of concessional loan charge (1,540) (3,903) (4,071) (8,472) (13,885)Changes in asset revaluation surplus (2,105) (78) (78) (78) (78)Total non-cash revenue (3,645) (3,981) (4,149) (8,550) (13,963)

Total comprehensive income attributable to the Australian Government after eliminating significant non-cash adjustments 22,740 19,498 35,770 62,051 97,292

148




2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 147,337 150,068 153,653 153,109 154,654 Advances and loans 800,074 1,126,971 1,509,303 2,043,310 2,565,789 Interest and other receivables 2,386 3,710 5,425 7,276 11,205 Other investments 165,444 189,703 288,063 422,831 587,097

Total financial assets 1,115,241 1,470,452 1,956,444 2,626,526 3,318,745 Non-financial assets

Property, plant and equipment 592 540 653 738 798 Intangibles 435 260 360 430 480 Other non-financial assets 559 559 559 559 559

Total non-financial assets 1,586 1,359 1,572 1,727 1,837 Total assets 1,116,827 1,471,811 1,958,016 2,628,253 3,320,582 LIABILITIES Payables

Suppliers 1,246 1,245 1,247 1,250 1,250 Unearned income 4,403 5,696 8,802 12,950 16,370

Total payables and unearned income 5,649 6,941 10,049 14,200 17,620 Interest bearing liabilities

Leases 507 507 507 507 507 Total interest bearing liabilities 507 507 507 507 507 Provisions

Employee provisions 4,102 4,738 5,461 6,258 7,110 Provision for concessional loans 18,108 33,472 51,015 64,708 76,478 Other provisions 129 129 129 129 129

Total provisions 22,339 38,339 56,605 71,095 83,717 Total liabilities 28,495 45,787 67,161 85,802 101,844 Net assets 1,088,332 1,426,024 1,890,855 2,542,451 3,218,738 EQUITY* Parent entity interest

Contributed equity 1,008,363 1,348,363 1,808,363 2,433,363 3,053,363 Reserves 3,243 3,321 3,399 3,477 3,555 Retained surplus (accumulated

deficit) 76,726 74,340 79,093 105,611 161,820 Total parent entity interest 1,088,332 1,426,024 1,890,855 2,542,451 3,218,738 Total equity 1,088,332 1,426,024 1,890,855 2,542,451 3,218,738


149



Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity $'000

Opening balance as at 1 July 2016Balance carried forward from previous

period 76,726 3,243 1,008,363 1,088,332 Adjusted opening balance 76,726 3,243 1,008,363 1,088,332 Comprehensive income

Other comprehensive income - 78 - 78Surplus/(deficit) for the period (2,386) - - (2,386)

Total comprehensive income (2,386) 78 - (2,308)of which:

Attributable to the Australian Government (2,386) 78 - (2,308)


Equity injection - - 340,000 340,000 Total transactions with owners - - 340,000 340,000 Estimated closing balance as at 30 June 2017 74,340 3,321 1,348,363 1,426,024 Closing balance attributable to the Australian Government 74,340 3,321 1,348,363 1,426,024


150




$'000

2016-17Budget

$'000


$'000


$'000


$'000


Interest and fees 44,035 50,977 71,136 100,682 135,271 Other 9 - - - -


Employees 17,716 21,757 23,811 25,639 27,326 Suppliers 5,656 8,204 8,416 8,733 9,031


Investments 539,314 26,924 2,310 111,776 75,748 Loans and advances 130,394 60,482 106,575 43,603 198,104 Sale of investments 200,204 194 194 194 194


Purchase of property, plant and equipment and intangibles 500 515 1,005 1,005 1,015

Investments 187,813 25,000 97,875 135,875 167,750 Loans and advances 323,351 420,370 505,523 710,547 822,650 Other 221,160 - - - -

Total cash used 732,824 445,885 604,403 847,427 991,415 Net cash from/(used by) investing activities 137,088

(358,285)

(495,324)

(691,854)

(717,369)

FINANCING ACTIVITIES Cash received

Contributed equity - 340,000 460,000 625,000 620,000 Total cash received - 340,000 460,000 625,000 620,000 Cash used

Return of equity 160,000 - - - - Total cash used 160,000 - - - - Net cash from/(used by) financing activities (160,000) 340,000 460,000 625,000 620,000 Net increase/(decrease) in cash held (2,240) 2,731 3,585 (544) 1,545

Cash and cash equivalents at the beginning of the reporting period 149,577 147,337 150,068 153,653 153,109

Cash and cash equivalents at the end of the reporting period 147,337 150,068 153,653 153,109 154,654


151




2016-17Budget

$'000


$'000


$'000


$'000


Funded internally from departmental resources 1,000 515 1,005 1,005 1,015

TOTAL 1,000 515 1,005 1,005 1,015

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 1,000 515 1,005 1,005 1,015

less additions by lease incentive (500) - - - - Total cash used to acquire assets 500 515 1,005 1,005 1,015


152




equipment$'000

Computer software

and intangibles

$'000Total$'000

As at 1 July 2016Gross book value 2,080 954 3,034 Accumulated depreciation/amortisation and impairment (1,488) (519) (2,007)

Opening net book balance 592 435 1,027 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - other 315 200 515 Total additions 315 200 515 Other movements Depreciation/amortisation expense (367) (375) (742)Total other movements (367) (375) (742)

As at 30 June 2017Gross book value 2,395 1,154 3,549 Accumulated depreciation/ amortisation and impairment (1,855) (894) (2,749)

Closing net book balance 540 260 800 Prepared on Australian Accounting Standards basis.

153



154

CLEAN ENERGY REGULATOR




156

Clean Energy Regulator Budget Statements

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 administers the following schemes that support the Australian Government’s Plan for a Cleaner Environment on behalf of the Government:

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, including through the introduction of the safeguard mechanism.

The National Greenhouse and Energy Reporting Scheme, established by the National Greenhouse and Energy Reporting Act 2007, which 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, reduce emissions of greenhouse gases in the electricity sector and ensures that renewable energy sources are ecologically sustainable.

The Australian National Registry of Emissions Units, established by the Australian National Registry of Emissions Units Act 2011, is a secure electronic registry system. Any organisation or individual that is required to or wishes to hold, transfer, cancel, surrender or relinquish units must have an Australian National Registry of Emissions Units account. The registry is designed to track accurately the location and ownership of emissions units issued under the Kyoto Protocol and Australian carbon credit units issued under the Emissions Reduction Fund.

These schemes work together to provide economic incentives, backed up by robust data, to reduce greenhouse gas emissions and increase the use of

158


renewable energy to achieve the Clean Energy Regulator’s purpose of ‘accelerating carbon abatement for Australia’. From 1 July 2016, the Clean Energy Regulator will implement the safeguard mechanism which aims to ensure purchased emissions reductions under the Emissions Reduction Fund are not displaced by significant emissions increases above business-as-usual levels elsewhere in the economy. Under the safeguard, Australia's largest emitters will be required to keep their emissions below a set baseline or surrender credits to offset any emissions over the baseline. The safeguard will work through the National Greenhouse and Energy Reporting Scheme, with baselines set using data reported under that scheme.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.

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 relationships and partnerships and authoritative data. Promote the value of our assets, the quality of our results and the strength of our capabilities.

Ensure our 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 responsibilities and functions of the Clean Energy Regulator is outlined in the Clean Energy Regulator Corporate Plan on the Regulator’s website at www.cleanenergyregulator.gov.au.

159

http://www.cleanenergyregulator.gov.au/







160


Table 1.1: Clean Energy Regulator resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual $'000

2016-17 estimate

$'000Departmental Prior year appropriations available (a) 23,666 19,680 Annual appropriations - ordinary annual services (b)

Outcome 1 72,974 70,981 Departmental capital budget (c) 1,185 1,183

Annual appropriations - other services - non-operating (d) Equity injection - 150

Total departmental annual appropriations 97,825 91,994 Total departmental resourcing 97,825 91,994 Administered Prior year appropriations available (a) 74,140 - Annual appropriations - ordinary annual services (b)

Outcome 1 145,010 279,405 Total administered annual appropriations 219,150 279,405 Total administered special appropriations (e) 6,558 262 Special accounts (e)

Non-appropriation receipts 350,000 - Total special account receipts 350,000 - Total administered resourcing 575,708 279,667 Total resourcing for Clean Energy Regulator 673,533 371,661 2015-16 2016-17Average staffing level (number) 324 324

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) Includes estimated unspent appropriations available from 2014-15 and 2015-16, as well as opening

special account balances. Excludes $5.098m subject to administrative quarantine by Finance. (b) Appropriation Bill (No.1) 2016-17.(c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of


(d) Appropriation Bill (No. 2) 2016-17.(e) 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.

161


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Clean Energy Regulator are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Clean Energy Regulator 2016-17 Budget measuresPart 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Capital measures

Trans- Pacific Partnership - Implementation 1.1

Departmental capital - 150 - - -

Total - 150 - - - Total capital measures

Departmental - 150 - - -

Total - 150 - - - Prepared on a Government Finance Statistics (fiscal) basis.Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

162






163



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 EnvironmentPrograms

Program 2.1 – Reducing Australia’s Greenhouse Gas EmissionsContribution to Outcome 1 made by linked programsThe Department of the Environment works with the Clean Energy Regulator to reduce Australia’s greenhouse gas emissions.

164




Table 2.1.1: Budgeted expenses for Outcome 1

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.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Clean Energy RegulatorAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) (a) 139,502 279,405 263,844 267,711 268,791

Special appropriations Public Governance,

Performance and

Accountability Act 2013 2,300 - - - - Renewable Energy (Electricity)

Act 2000 295 262 291 330 402 Clean Energy Act 2011 3,963 - - - -


Departmental appropriation (b) 72,917 70,927 71,331 72,036 72,765 Expenses not requiring

appropriation in the Budget

year (c) 15,775 13,313 6,167 4,635 2,929 Departmental total 88,692 84,240 77,498 76,671 75,694

Total expenses for program 1.1 234,752 363,907 341,633 344,712 344,887 Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) (a) 139,502 279,405 263,844 267,711 268,791

Special appropriations 6,558 262 291 330 402 Departmental expenses

Departmental appropriation (b) 72,917 70,927 71,331 72,036 72,765 Expenses not requiring

appropriation in the Budget

year (c) 15,775 13,313 6,167 4,635 2,929 Total expenses for Outcome 1 234,752 363,907 341,633 344,712 344,887

165


Table 2.1.1: Budgeted expenses for Outcome 1 (Continued)Movement of administered funds between years 2015-16 2016-17 2017-18 2018-19 2019-20

Outcome 1: Program 1.1: Clean Energy

Regulator (159,668) (78,932) (156,837) (204,089) (168,864)

Total movement of administered funds (159,668) (78,932) (156,837) (204,089) (168,864)


Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.(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 changed 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 funded from both ‘Ordinary annual services (Appropriation Bill No.1)’ and ‘Revenue from independent sources (s74).

(c) Expenses not requiring appropriation in the Budget year comprise depreciation expenses, amortisation expenses, make good expenses, audit fees and impairment of assets, and special account expenses.

166




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.

Emissions Reduction Fund

Delivery Administer the Emissions Reduction Fund by registering projects, issuing Australian carbon credit units, conducting auctions, managing contracts and implementing the safeguard mechanism.



2015-16 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.

It is expected that the targeted cumulative contracted abatement will be delivered for 2015-16.

[Against a target of: ≥ 80% of cumulative contracted abatement is delivered on time]

2016-17 Proportion of contracted abatement delivered. ≥ 80% of cumulative contracted abatement is delivered on time

2017-18 and beyond As for 2016-17. ≥ 80% of cumulative contracted abatement is delivered on time

Purpose Accelerating carbon abatement for Australia.

National Greenhouse and Energy Reporting Scheme

Delivery Administer the National Greenhouse and Energy Reporting Scheme to inform government policy formulation and the Australian public sector, underpin Australia’s international reporting obligations, assist Commonwealth, state and territory government programs and activities, and reduce the need for duplication of similar reporting requirements by the states and territories.



2015-16 Compliance levels by regulated entities.Expected achievement against criterion:The collection and assurance of reported emissions and energy data by the Clean Energy Regulator ensures the reliability of the data, which underpins the reduction of net

For the 2014-15 reporting period, 810 of 822 (98.4 %) of expected reporters submitted reports by the statutory deadline.

[Against a target of: ≥ 95% of regulated entities are materially

167


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.

greenhouse gas emissions and supports Australia’s emissions and energy data needs.

compliant with their statutory obligations.]

2016-17 Compliance levels by regulated entities. ≥ 95% of regulated entities are materially compliant with their statutory obligations.

2017-18 and beyond As for 2016-17. ≥ 95% of regulated entities are materially compliant with their statutory obligations.

Purpose Accelerating carbon abatement for Australia.

Renewable Energy Target

Delivery Operation of the Renewable Energy Target by ensuring the integrity of renewable energy certificate market supply and demand, and maintaining the registry that facilitates the administration of renewable energy certificates by market participants.



2015-16 Compliance levels by liable entities.Expected achievement against criterion: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.

For the 2015 calendar year, compliance with certificate surrender obligations by liable entities was 99.7%.

[Against a target of: ≥ 95% compliance with certificate surrender obligations by liable entities.]

2016-17 Compliance levels by liable entities. ≥ 95% compliance with certificate surrender obligations by liable entities.

2017-18 and beyond As for 2016-17. ≥ 95% compliance with certificate surrender obligations by liable entities.

Purpose 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 2015-19.

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Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2016-17 budget year, including the impact of Budget measures and resourcing on financial statements.


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 statementsThe Clean Energy Regulator is budgeting to incur departmental expenses of $84.2 million in 2016-17.

The Clean Energy Regulator is budgeting for a break-even position in 2016-17 excluding non-appropriated expenses relating to depreciation and amortisation.

3.1.3 Movement of fundsThe 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.

169




2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 39,493 39,007 38,969 38,899 39,206 Suppliers 33,889 32,385 32,827 33,602 34,024 Depreciation and amortisation 15,253 12,794 5,702 4,170 2,464 Other expenses 57 54 - - - Total expenses 88,692 84,240 77,498 76,671 75,694 LESS: OWN-SOURCE INCOME Gains Other 465 465 465 465 465 Total gains 465 465 465 465 465 Total own-source income 465 465 465 465 465 Net (cost of)/contribution by services (88,227) (83,775) (77,033) (76,206) (75,229)Revenue from Government 72,974 70,981 71,331 72,036 72,765 Surplus/(deficit) attributable to the Australian Government (15,253) (12,794) (5,702) (4,170) (2,464)Total comprehensive income/(loss) (15,253) (12,794) (5,702) (4,170) (2,464)Total comprehensive income/(loss) attributable to the Australian Government (15,253) (12,794) (5,702) (4,170) (2,464)


2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations. - - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a)

15,253 12,794 5,702 4,170 2,464

Total comprehensive income/(loss) - as per the statement of comprehensive income (15,253) (12,794) (5,702) (4,170) (2,464)

Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation


170



Estimated actual

$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 307 307 307 307 307Trade and other receivables 25,178 24,086 24,723 25,378 25,378Other financial assets 51 51 51 51 51

Total financial assets 25,536 24,444 25,081 25,736 25,736Non-financial assets

Land and buildings 1,580 - - - - Property, plant and equipment 952 661 465 276 103Intangibles 20,498 12,408 8,092 5,308 4,222Other non-financial assets 1,097 1,097 1,097 1,097 1,097

Total non-financial assets 24,127 14,166 9,654 6,681 5,422

Total assets 49,663 38,610 34,735 32,417 31,158LIABILITIES Payables

Suppliers 6,491 6,490 6,490 6,490 6,490

Total payables 6,491 6,490 6,490 6,490 6,490Interest bearing liabilities

Leases 229 - - - -

Total interest bearing liabilities 229 - - - - Provisions

Employee provisions 11,274 11,858 12,441 13,042 13,042Other provisions 1,846 1,900 1,954 2,008 2,008

Total provisions 13,120 13,758 14,395 15,050 15,050


Net assets 29,823 18,362 13,850 10,877 9,618EQUITY* Parent entity interest

Contributed equity 83,725 85,058 86,248 87,445 88,650 Reserves 3,985 3,985 3,985 3,985 3,985 Retained surplus (accumulated

deficit) (57,887) (70,681) (76,383) (80,553) (83,017)Total Equity 29,823 18,362 13,850 10,877 9,618


171



Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity $'000

Opening balance as at 1 July 2016Balance carried forward from previous period (57,887) 3,985 83,725 29,823

Adjusted opening balance (57,887) 3,985 83,725 29,823 Comprehensive income

Surplus/(deficit) for the period (12,794) - - (12,794)

Total comprehensive income (12,794) - - (12,794)of which:

Attributable to the Australian Government (12,794) - - (12,794)Transactions with owners

Contributions by ownersEquity Injection - Appropriation - - 150 150 Departmental Capital Budget - - 1,183 1,183

Sub-total transactions with owners - - 1,333 1,333 Estimated closing balance as at 30 June 2017 (70,681) 3,985 85,058 18,362 Closing balance attributable to the Australian Government (70,681) 3,985 85,058 18,362


172



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 72,575 70,501 70,622 71,381 72,962 Total cash received 72,575 70,501 70,622 71,381 72,962 Cash used


Total cash used 72,575 70,501 70,622 71,381 72,962 Net cash from/(used by) operating activities - - - - - INVESTING ACTIVITIES Cash used



Contributed equity 5,499 2,833 1,190 1,197 1,205 Total cash received 5,499 2,833 1,190 1,197 1,205 Net cash from/(used by) financing activities 5,499 2,833 1,190 1,197 1,205 Net increase/(decrease) in cash held - - - - -




173


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

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 1,185 1,183 1,190 1,197 1,205 Equity injections - Bill 2 - 150 - - -


Purchase of non-financial assets 1,185 1,183 1,190 1,197 1,205

Total Items 1,185 1,183 1,190 1,197 1,205 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 4,314 1,650 - - - Funded by capital appropriation –

DCB (b) 1,185 1,183 1,190 1,197 1,205

TOTAL 5,499 2,833 1,190 1,197 1,205

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 5,499 2,833 1,190 1,197 1,205

Total cash used to acquire assets 5,499 2,833 1,190 1,197 1,205 Prepared on Australian Accounting Standards basis.(a) Includes prior Appropriation Act (No.2) appropriations.(b) Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental Capital Budgets.

174



Buildings

$'000


equipment$'000

Computer software

and intangible

s$'000

Total$'000

As at 1 July 2016Gross book value 6,658 1,847 68,385 76,890 Accumulated depreciation/amortisation

and impairment (5,078) (895) (47,887) (53,860)Opening net book balance 1,580 952 20,498 23,030Capital asset additions


By purchase - appropriation equity (a) - - 150 150 By purchase - appropriation ordinary

annual services (b) - - 1,183 1,183 By purchase - other - - 1,500 1,500 Total additions - - 2,833 2,833 Other movements Depreciation/amortisation expense (1,580) (291) (10,923) (12,794)Total other movements (1,580) (291) (10,923) (12,794)

As at 30 June 2017Gross book value 6,658 1,847 71,218 79,723 Accumulated depreciation/amortisation

and impairment (6,658) (1,186) (58,810) (66,654)Closing net book balance - 661 12,408 13,069

Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill (No.

2) 2016-17(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)

2016-17 depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

175




$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Suppliers 3,817 3,817 3,817 3,817 3,817 Other expenses 142,243 275,850 260,318 264,224 265,376

Total expenses administered on behalf of Government 146,060 279,667 264,135 268,041 269,193 LESS: OWN-SOURCE INCOME Own-source revenue Taxation revenue

Other taxes 563 595 637 712 712 Total taxation revenue 563 595 637 712 712 Non-taxation revenue

Sale of goods and rendering of services 10,065 12,758 13,256 13,880 14,318

Total non-taxation revenue 10,065 12,758 13,256 13,880 14,318 Total own-source revenue administered on behalf of Government 10,628 13,353 13,893 14,592 15,030 Net cost of/(contribution by) services 135,432 266,314 250,242 253,449 254,163

Surplus/(Deficit) after income tax (135,432) (266,314) (250,242

) (253,449

) (254,163)

Total comprehensive income/(loss) (135,432) (266,314)(250,242

)(253,449

) (254,163)Prepared on Australian Accounting Standards basis.

176




$'000

2016-17Budget

$'000


$'000


$'000


$'000


Taxation receivables 213 213 213 213 213 Trade and other receivables 493 493 493 493 493

Total financial assets 706 706 706 706 706 Total assets administered on behalf of Government 706 706 706 706 706 LIABILITIES Payables

Suppliers 11,031 11,031 11,031 11,031 11,031 Total payables 11,031 11,031 11,031 11,031 11,031 Total liabilities administered on behalf of Government 11,031 11,031 11,031 11,031 11,031 Net assets/(liabilities) (10,325) (10,325) (10,325) (10,325) (10,325)


177



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Sales of goods and rendering of services 10,065 12,758 13,256 13,880 14,318

Taxes 563 595 637 712 712 Total cash received 10,628 13,353 13,893 14,592 15,030 Cash used

Subsidies paid 1,078 - - - - Suppliers 3,817 3,817 3,817 3,817 3,817 Other 144,019 275,850 260,318 264,224 265,376

Total cash used 148,914 279,667 264,135 268,041 269,193 Net cash from/(used by) operating activities (138,286) (266,314)

(250,242) (253,449)

(254,163)

Net increase/(decrease) in cash held (138,286) (266,314)

(250,242) (253,449)

(254,163)

Cash and cash equivalents at beginning of reporting period 416 - - - -

Cash from Official Public Account for: - Appropriations 151,468 279,667 264,135 268,041 269,193

Total cash from Official Public Account 151,468 279,667 264,135 268,041 269,193

Cash to Official Public Account for: - Appropriations (13,598) (13,353) (13,893) (14,592) (15,030)

Total cash to Official Public Account (13,598) (13,353) (13,893) (14,592) (15,030)Cash and cash equivalents at end of reporting period - - - - -


178



180

CLIMATE CHANGE AUTHORITY

Section 1: Entity overview and resources.............................................................1831.1 Strategic direction statement........................................................................1831.2 Entity resource statement............................................................................184



182

CLIMATE CHANGE AUTHORITY



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 through 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 2016-17, the Authority will commence work on its second review of the Carbon Credits (Carbon Farming Initiative) Act 2011, which is due to be completed by 31 December 2017.

In 2014, the Minister for the Environment requested that the Authority undertake a Special Review into Australia’s policies and future targets for reducing greenhouse gas emissions. This review is due to conclude formally on 30 June 2016 and is expected to include recommendations for further research and analytical work. The Authority will progress these research tasks recommended in the Special Review as part of its work plan in 2016–17.

Government policy is that the Climate Change Authority will be wound up after the life of the current Parliament.

184





185

Climate Change Authority Budget Statements

Table 1.1: Climate Change Authority resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000


Prior year appropriations available 2,470 - Departmental appropriation 3,561 2,563

Total departmental annual appropriations 6,031 2,563 Total departmental resourcing 6,031 2,563 Total resourcing for Climate Change Authority 6,031 2,563


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) 2016-17.

186






187



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.

188




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.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Reviewing Climate Change Mitigation PoliciesDepartmental expenses

Departmental appropriation 3,561 2,563 - - - Expenses not requiring appropriation

in the Budget year (a) 2,254 307 - - - Departmental total 5,815 2,870 - - -

Total expenses for Program 1.1 5,815 2,870 - - -


Departmental appropriation 3,561 2,563 - - - Expenses not requiring appropriation

in the Budget year (a) 2,254 307 - - - Departmental total 5,815 2,870 - - -

Total expenses for Outcome 1 5,815 2,870 - - -


(a) Expenses not requiring appropriation in the Budget year comprise depreciation expenses, amortisation expenses and an approved operating loss (2015-16).

189




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.Delivery The Authority will conduct regular and specifically commissioned reviews, and

undertake climate change research.


Year Key Performance Indicators Forecast Against Indicators2015-16 Reviews conducted by the Authority

are of high quality, well-received by stakeholders and used in public policy forums and discussions.

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.

The first and second draft reports of the Special Review (released in June and November 2015) are generally well received and attract a reasonable level of discussion by stakeholders.

The consultation paper on electricity sector modelling and the final report on the Special Review are well received and attract a reasonable level of discussion by stakeholders.

Stakeholders express the view that consultation has been meaningful and transparent.

Economic modelling, submissions and review reports are accessible on the Authority’s website.

The Authority makes its recommendations in accordance with its statutory principles after reviewing a large body of material.

Year Performance Criteria Targets2016-17 Reviews and reports from research

conducted by the Authority are of high quality, well-received by stakeholders and used in public policy forums and discussions.

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.

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.

Stakeholders express the view that consultation has been meaningful and transparent.

Economic modelling, submissions and

190


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.

review reports are accessible on the Authority’s website.

Purpose The Climate Change Authority’s objective is to provide rigorous, independent and balanced advice to the Minister for the Environment 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 by undertaking climate change research.

191





3.1.1 Differences between entity resourcing and financial statementsThe Authority has no significant differences between the resource information presented in the Budget Papers and Portfolio Budget Statements.

3.1.2 Explanatory notes and analysis of budgeted financial statementsThe financial statements reflect Authority operations to 31 December 2016, which include the delivery of a special review under section 59 of the Climate Change Authority Act 2011 and the performance of other legislated functions. The financial statements have been presented to reflect the closure of the Authority on 31 December 2016.

192





$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 3,125 2,210 - - - Suppliers 2,405 353 - - - Depreciation and amortisation 285 307 - - - Total expenses 5,815 2,870 - - - Net cost of services (5,815) (2,870) - - - Revenue from Government 3,561 2,563 - - - Deficit attributable to the Australian

Government (2,254) (307) - - - Total comprehensive loss (2,254) (307) - - - Total comprehensive loss attributable

to the Australian Government (2,254) (307) - - -


2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations

(1,969) - - - - less depreciation/amortisation expenses previously funded through revenue appropriations (a)

285 307 - - - Total comprehensive loss - as per the statement of comprehensive income (2,254) (307) - - -

Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation

Bill 1 revenue appropriations 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) provided through Appropriation Bill 1 equity appropriations.

193



Estimated actual

$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 378 - - - - Trade and other receivables 604 - - - -

Total financial assets 982 - - - - Non-financial assets

Land and buildings 266 - - - - Intangibles 41 - - - - Other non-financial assets 49 - - - -

Total non-financial assets 356 - - - - Total assets 1,338 - - - - LIABILITIES Payables

Suppliers 113 - - - - Other payables 105 - - - -

Total payables 218 - - - - Provisions

Employee provisions 810 - - - - Total provisions 810 - - - - Total liabilities 1,028 - - - - Net assets 310 - - - - EQUITY* Parent entity interest

Contributed equity 1,309 - - - - Retained surplus (accumulated

deficit) (999) - - - - Total parent entity interest 310 - - - - Total equity 310 - - - -


194



Retained earnings

$'000


Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period (999) 1,309 310

Adjusted opening balance (999) 1,309 310 Comprehensive income

Surplus/(deficit) for the period (307) - (307)Total comprehensive income (307) - (307)

of which: Attributable to the Australian Government (307) - (307)

Transactions with owners Distributions to owners

Returns of capital:Distribution of equity (3) - (3)Other 1,309 (1,309) -

Sub-total transactions with owners 1,306 (1,309) (3)Estimated closing balance as at 30 June 2017 - - - Closing balance attributable to the Australian Government - - -


195




$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 5,520 3,074 - - - Sale of goods and rendering of

services - 78 - - - Net GST received - 15 - - -

Total cash received 5,520 3,167 - - - Cash used

Employees 3,115 3,020 - - - Suppliers 2,405 465 - - - Cash transferred to OPA - 3 - - - Other - 57 - - -

Total cash used 5,520 3,545 - - - Net cash used by operating activities - (378) - - - Net increase/(decrease) in cash held - (378) - - -

Cash and cash equivalents at the beginning of the reporting

period 378 378 - - - Cash and cash equivalents at the

end of the reporting period 378 - - - - Prepared on Australian Accounting Standards basis.

196



Buildings

$'000


equipment$'000

Computer software

$'000Total$'000

As at 1 July 2016Gross book value 1,224 55 112 1,391 Accumulated depreciation/

amortisation and impairment (958) (55) (71) (1,084)Opening net book balance 266 - 41 307

Other movements Depreciation/amortisation expense (266) - (41) (307)Total other movements (266) - (41) (307)

As at 30 June 2017Gross book value 1,224 55 112 1,391 Accumulated depreciation/

amortisation and impairment (1,224) (55) (112) (1,391)Closing net book balance - - - -


197



198

DIRECTOR OF NATIONAL PARKS




200

Director of National Parks Budget Statements

DIRECTOR OF NATIONAL PARKS



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.

A significant focus of the Director of National Parks in 2016-17 is the completion of marine reserve management plans based on the outcomes of the Independent Marine Reserves Review.

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

ecologically sustainable use: to contribute to social, economic and local community well-being while protecting natural and cultural values of Commonwealth reserves

amazing destinations: to offer world class natural and cultural experiences, enhancing Australia’s visitor economy.

202


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

203






204


Table 1.1: Director of National Parks resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000

Opening balance/cash reserves at 1 July 43,390 43,390 Funds from Government Annual appropriations - other services (a)

Equity injection - transferred by portfolio department - 619 Total annual appropriations - 619 Amounts received from related entities

Amounts from portfolio department (b) 40,470 42,829 Total amounts received from related entities 40,470 42,829 Total funds from Government 40,470 43,448 Funds from other sources

Interest 1,000 1,010 Sale of goods and services 18,221 17,547 Other 1,339 665

Total funds from other sources 20,560 19,222 Total net resourcing for Director of National Parks 104,420 106,060 2015-16 2016-17Average staffing level (number) 317 321

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) 2016-17.(b) Funding provided by the Portfolio Department that is not specified within the Annual Appropriations Bills

as a payment to the Director of National Parks.

205


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Director of National Parks are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Director of National Parks 2016-17 Budget measuresPart 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program

2015-16$'000

2016-17$'000

2017-18$'000

2018-19$'000

2019-20$'000

Expense measures Commonwealth Marine Reserves - 1.1 implementation

Departmental expenses - 2,906 7,375 8,733 7,250

Total - 2,906 7,375 8,733 7,250

Total expense measures

Departmental - 2,906 7,375 8,733 7,250

Total - 2,906 7,375 8,733 7,250 Capital measures Commonwealth Marine Reserves - 1.1 implementation

Departmental capital - 619 376 181 355

Total - 619 376 181 355

Total capital measures

Departmental - 619 376 181 355

Total - 619 376 181 355 Prepared on a Government Finance Statistics (fiscal) basis.Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.Note: Measure includes ongoing funding of $5.3m from 2020-21.

206






207



Outcome 1: Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.

Linked programs


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 Environment

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

208




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 1: Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Parks and ReservesRevenue from Government


in the budget year (a) 5,769 5,269 4,262 3,067 2,698 Revenues from other independent sources 24,637 23,299 20,702 19,638 19,091

Total expenses for Program 1.1 70,876 71,397 72,378 71,561 69,275 Average staffing level (number) 2015-16 2016-17 317 321

(a) Expenses not requiring appropriation in the Budget year comprise depreciation and amortisation expenses.

209




Outcome 1 – Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.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.


Year Key performance indicators (a) Forecast against indicators

2015-16 Populations of threatened and significant species are increasing.

Four populations forecast to increase.

Populations of priority invasive species are reduced.

Three populations forecast to reduce.

Increase in numbers of Indigenous staff and/or contractors directly or indirectly providing park services.

Forecast increase in numbers of Indigenous staff and/or contractors.

Maintain or improve the level of visitor satisfaction and number of visitors.

Forecast increase in numbers of visitors and in levels of visitor satisfaction.


2016-17 Populations of threatened and significant species are increasing.Populations of priority invasive species are reduced.Increase in numbers of Indigenous staff and/or contractors directly or indirectly providing park services.Maintain or improve the level of visitor satisfaction and number of visitors.Enhance level of active management of marine reserves and engagement of users and stakeholders.Increase the knowledge base for long term adaptive management of the marine reserves.

Increase in populations of threatened and significant species. Decrease in size of populations of invasive species.Increase in numbers of Indigenous staff.5 per cent increase in visitor numbers.Maintain or increase levels of visitor satisfaction. New management plans for Commonwealth marine reserves in effect and implemented.Increase in the number of marine reserves long-term monitoring sites.



210


211


Outcome 1 – Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.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.

Purposes 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

ecologically sustainable use; to contribute to social, economic and local community well-being while protecting natural and cultural values of Commonwealth reserves

amazing destinations: to offer world class natural and cultural experiences, enhancing Australia’s visitor economy.


Measure title – Commonwealth Marine Reserves – implementation (a) New or modified performance criteria that reflect new or materially changed programs are shown in

italics.

212





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 new 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 Bush Blitz II coming to an end in 2017-18.

Other gains of $4.08 million relate to the estimate of the cost of corporate services provided by the Department of the Environment free of charge under a Service Delivery Agreement with the Director of National Parks.

The Director of National Parks received approval from the Minister of Finance to revise the operating loss estimates relating to depreciation in 2019-20.

213




2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 28,654 27,955 28,230 29,125 28,685 Suppliers 27,441 29,291 31,004 30,487 29,015 Depreciation and amortisation 14,484 13,984 12,977 11,782 11,413 Other expenses 297 167 167 167 162 Total expenses 70,876 71,397 72,378 71,561 69,275 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 18,221 17,547 14,951 14,441 13,903 Interest 1,000 1,010 1,010 1,010 1,003 Other 1,182 665 664 110 107 Total own-source revenue 20,403 19,222 16,625 15,561 15,013 Gains Sale of assets 157 - - - Other 4,077 4,077 4,077 4,077 4,078 Total gains 4,234 4,077 4,077 4,077 4,078 Total own-source income 24,637 23,299 20,702 19,638 19,091 Net (cost of)/contribution by services (46,239) (48,098) (51,676) (51,923) (50,184)Revenue from Government 40,470 42,829 47,414 48,856 47,486

Surplus/(deficit) attributable to the Australian Government (5,769) (5,269) (4,262) (3,067) (2,698)Total comprehensive income/(loss) (5,769) (5,269) (4,262) (3,067) (2,698)

Total comprehensive income/(loss) attributable to the Australian Government (5,769) (5,269) (4,262) (3,067) (2,698)


214



Estimated actual

$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 25,248 25,248 25,248 25,248 25,248Trade and other receivables 1,971 1,971 1,971 1,971 1,971Other investments 18,142 18,142 18,142 18,142 18,142Other financial assets 1,921 1,921 1,921 1,921 1,921


Land and buildings 68,431 66,428 64,808 63,994 63,184Property, plant and equipment 153,035 150,388 148,122 146,050 144,517Intangibles 722 722 722 722 722Other non-financial assets 539 539 539 539 539

Total non-financial assets 222,727 218,077 214,191 211,305 208,962

Total assets 270,009 265,359 261,473 258,587 256,244LIABILITIES Payables

Suppliers 2,750 2,750 2,750 2,750 2,750Other payables 5,427 5,427 5,427 5,427 5,427

Total payables 8,177 8,177 8,177 8,177 8,177Provisions

Employee provisions 9,223 9,223 9,223 9,223 9,223Other provisions 41 41 41 41 41

Total provisions 9,264 9,264 9,264 9,264 9,264Total liabilities 17,441 17,441 17,441 17,441 17,441Net assets 252,568 247,918 244,032 241,146 238,803EQUITY* Parent entity interest


deficit) 43,561 38,292 34,030 30,963 28,265 Total parent entity interest 252,568 247,918 244,032 241,146 238,803 Total equity 252,568 247,918 244,032 241,146 238,803

Prepared on Australian Accounting Standards basis.* ‘Equity’ is the residual interest in assets after the deduction of liabilities.

215



Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity $'000

Opening balance as at 1 July 2016Balance carried forward from previous period 43,561 172,562 36,445 252,568

Adjusted opening balance 43,561 172,562 36,445 252,568 Comprehensive income

Surplus/(deficit) for the period (5,269) - - (5,269)Total comprehensive income (5,269) - - (5,269)

of which: Attributable to the Australian Government (5,269) (5,269)


Equity injection - transferred byPortfolio Department - - 619 619

Sub-total transactions with owners - - 619 619 Estimated closing balance as at 30 June 2017 38,292 172,562 37,064 247,918 Closing balance attributable to the Australian Government 38,292 172,562 37,064 247,918


216




$'000

2016-17Budget

$'000


$'000


$'000


$'000


Receipts from Government 40,470 42,829 47,414 48,855 47,486 Sale of goods and rendering

of services 18,221 17,547 14,951 14,441 13,903 Interest 1,000 1,010 1,010 1,010 1,003 Other 1,182 921 664 110 107


Employees 27,567 28,211 28,230 29,124 28,685 Suppliers 24,451 25,214 26,927 26,410 24,937 Other 297 167 167 167 162


Proceeds from sales of property, plant and equipment 157 - - - -

Total cash received 157 - - - - Cash used

Purchase of buildings and property, plant and equipment 8,715 9,334 9,091 8,896 9,070


Equity injection - transferred by Portfolio Department - 619 376 181 355

Total cash received - 619 376 181 355 Net cash from/(used by) financing activities - 619 376 181 355 Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting

period 25,248 25,248 25,248 25,248 25,248 Cash and cash equivalents at the end of the reporting period 25,248 25,248 25,248 25,248 25,248


217


Table 3.5 Departmental capital budget statement (for the period ended 30 June) 2015-16

Estimated actual

$'000

2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS Equity injection - transferred by

portfolio department - 619 376 181 355

Total new capital appropriations - 619 376 181 355 Provided for:

Purchase of non-financial assets - 619 376 181 355 Total items - 619 376 181 355


Funded by capital appropriations (a) - 619 376 181 355 Funded internally from departmental

resources (b) 8,715 8,715 8,715 8,715 8,715 TOTAL 8,715 9,334 9,091 8,896 9,070

Prepared on Australian Accounting Standards basis.(a) Includes current Appropriation Bill (No.2) appropriations.(b) Includes the following sources of funding:

- annual and prior year revenue from Government- donations and contributions- internally developed assets- proceeds from the sale of assets.

218


Table 3.6: Statement of departmental asset movements (Budget year 2016-17)

Land$'000

Buildings$'000


equipment$'000

Computer software

and intangibles

$'000Total$'000

As at 1 July 2016Gross book value 5,690 70,764 174,572 855 251,881 Accumulated depreciation/amortisation

and impairment - (8,023) (21,537) (133) (29,693)Opening net book balance 5,690 62,741 153,035 722 222,188 Capital asset additions


By purchase - appropriation equity (a) - 619 - 619 By purchase - appropriation ordinary

annual services (b) - 2,500 6,215 - 8,715 Total additions - 2,500 6,834 - 9,334 Other movements Depreciation/amortisation expense - (4,503) (9,481) - (13,984)Total other movements - (4,503) (9,481) - (13,984)

As at 30 June 2017Gross book value 5,690 73,264 181,406 855 261,215 Accumulated depreciation/amortisation

and impairment - (12,526) (31,018) (133) (43,677)Closing net book balance 5,690 60,738 150,388 722 217,538

Prepared on Australian Accounting Standards basis.(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No.2)


2016-17 for depreciation/amortisation expenses, DCBs or other operational expenses.

219

Great Barrier Reef Marine Park Authority


220

GREAT BARRIER MARINE PARK AUTHORITY




222

Great Barrier Reef Marine Park Authority Budget Statements

GREAT BARRIER REEF MARINE PARK AUTHORITY



Under the Great Barrier Reef Marine Park Act 1975, the Great Barrier Reef Marine Park Authority is responsible for managing one of the world’s premier natural resources — the Great Barrier Reef.

The Authority’s primary outcome 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.

This outcome is delivered through the Improving the Outlook of the Great Barrier Reef Program which is supported by four goals — protecting and restoring the Reef’s ecosystem health and biodiversity, reducing cumulative impacts, safeguarding the Reef’s heritage, and ensuring use of the Marine Park is ecologically sustainable and benefits current and future generations.

The Authority and the Queensland Government jointly manage the Marine Park and this close collaboration is critically important for effectively managing such a large, diverse and complex marine area. The Field Management Program between the Australian and Queensland governments coordinates the day-to-day activities and field operations required for managing the Marine Park, the associated Queensland Great Barrier Reef Coast Marine Park, and the World Heritage Area. These joint arrangements also underpin the operation of the zoning plan and permitting system which regulates where uses may occur, the types of activities allowed and the conditions under which these may proceed.

In carrying out its functions, the Authority maintains strong relationships with Traditional Owners and a wide range of agencies, reef users, stakeholders, and community members with an interest in the long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier Reef.

A major focus for the Authority will be continuing to work with other Australian Government entities, particularly the Department of the Environment and the Queensland Government to implement the Reef 2050 Plan and the new initiatives outlined in the 2014 Great Barrier Reef Region Strategic Assessment Program Report. The Great Barrier Reef Ministerial Forum agreed in June 2015 that the Authority would lead the implementation of the Reef 2050 Integrated Monitoring and Reporting

224


Program, to ensure the Plan’s effectiveness is monitored in a scientifically sound and publicly transparent manner.

The Authority is continuing to implement a number of actions through the Reef Trust, as one of the key mechanisms for delivering the Reef 2050 Plan, to address key threats to the Reef. These actions include the crown-of-thorns starfish control program and actions under the Turtle and Dugong Protection Plan.

The Australian Government’s Reef Program is a component of the National Landcare Program which represents a coordinated approach to environmental management in Australia. The Reef Program is aimed at addressing the threats of declining water quality and climate change to the Great Barrier Reef World Heritage Area. Under the Reef Program land managers across the catchment are assisted to adopt improved agricultural and urban management practices that will reduce the discharge of nutrients, sediments and pesticides in the Reef lagoon. Additionally the Program 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 Program, including:

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 and knowledge and information sharing, ultimately achieving critical environmental outcomes for the Great Barrier Reef.

The Authority’s future program of work will provide greater certainty on the standards to be met when undertaking activities in the Marine Park, the requirements for assessments and, most importantly, the outcomes the Authority is working to achieve.

225







226


Table 1.1: Great Barrier Reef Marine Park Authority resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000


Prior year appropriations available 10,855 8,210 Departmental appropriation 17,361 17,090 s 74 retained revenue receipts (b) 15,034 21,037 Departmental capital budget (c) 778 772

Annual appropriations - other services - non-operating (d) Equity injection - 150

Total departmental annual appropriations 44,028 47,259

Total departmental special appropriations (e) 10,000 10,000

Special accounts Opening balance 1,347 1,312 Appropriation receipts (f) 8,372 8,372 Non-appropriation receipts 8,412 8,412

Total special accounts 18,131 18,096

less departmental appropriations drawn from annual/special appropriations and credited to special accounts (8,372) (8,372)Total departmental resourcing 63,787 66,983 Total resourcing for the Great Barrier Reef Marine Park Authority 63,787 66,983 2015-16 2016-17Average staffing level (number) 207 210

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) 2016-17.(b) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and

Accountability Act 2013.(c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of


(d) Appropriation Bill (No.2) 2016-17.(e) 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.

(f) Amounts credited to the special account(s) from the Authority's annual and special appropriations.

227


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Great Barrier Reef Marine Park Authority are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Great Barrier Reef Marine Park Authority 2016-17 Budget measuresPart 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Capital measures Trans-Pacific Partnership - 1.1 Implementation

Departmental capital - 150 - - - Total - 150 - - - Total capital measures

Departmental - 150 - - - Total - 150 - - -

Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

228






229



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 program


Program 1.1 – Sustainable Management of Natural Resources and the Environment

Program 1.3 – Land Sector Initiatives Program 1.4 – Conservation of Australia’s Heritage and

Environment Program 1.5 – Environmental Regulation

Contribution to Outcome 1 made by linked programsThe Department of the Environment 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.

230




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.

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Improving the outlook for the Great Barrier ReefDepartmental expenses

Departmental appropriation 8,989 8,718 8,733 8,822 9,106 s74 Retained revenue

receipts (a) 14,474 16,077 14,967 3,892 2,980

Special appropriations Great Barrier Reef Marine Park Act 1975 10,000 10,000 10,000 10,000 10,000

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) 4,955 1,955 1,955 1,955 1,955

Departmental total 55,202 53,534 52,439 41,453 40,825

Total expenses for program 1.1 55,202 53,534 52,439 41,453 40,825


Departmental appropriation 8,989 8,718 8,733 8,822 9,106 s74 Retained revenue

receipts (a) 14,474 16,077 14,967 3,892 2,980

Special appropriations 10,000 10,000 10,000 10,000 10,000 Special accounts 16,784 16,784 16,784 16,784 16,784 Expenses not requiring

appropriation in the Budget year (b) 4,955 1,955 1,955 1,955 1,955

Departmental total 55,202 53,534 52,439 41,453 40,825 Total expenses for Outcome 1 55,202 53,534 52,439 41,453 40,825


(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 comprise depreciation expenses, amortisation expenses, make good expenses and audit fees.

231




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 The Authority uses a number of tools including zoning plans, plans of management, permissions, policies and strategies, formal agreements and site management arrangements. Various management approaches are used including education and awareness, planning, environmental impact assessment, monitoring, stewardship programs, habitat protection and restoration works and compliance and enforcement.Management is enhanced through partnership arrangements with Traditional Owners, the community, business, industry, scientists and government. The Field Management Program, a jointly funded program, is a cooperative partnership with the Queensland Government. It undertakes foundational activities to support operational and routine day-to-day management in the Marine Park, the adjacent Queensland Government Great Barrier Reef Coast Marine Park and on national park islands.



2015-16(a) Percentage of the Marine Park managed in accordance with an accredited Traditional Use of Marine Resources Agreement or an Indigenous Land Use Agreement.

Percentage of visitors to the Reef using tourism operators accredited as ‘High Standard Operators’.

Student participants within the Reef Guardian Schools program.

There are currently seven Traditional Use of Marine Resources Agreements and one Indigenous Land Use Agreement in place which covers 24.6% of the Marine Park.Against a target of 23%

Expected to surpass the target in line with the increase in the number of tourists visiting the Great Barrier Reef Marine Park.Against a target: 55%

More than 119,000 students from 275 schools involved in the Reef Guardian Schools ProgramAgainst a target: 113,000

232



Percentage of visitors to Reef HQ that participate in talks and tours that deliver key messages about risks to the Great Barrier Reef.

In the period to 31 December 2015, more than 71% of visitors, representing more than 52,890 people, to Reef HQ participated in talks and tours that delivered key messages about risks to the Great Barrier Reef. Target: 63%

2016-17 (b) 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.

The impacts of human activity on the Great Barrier Reef are reduced through effective environmental regulation.

Environmental outcomes for the Great Barrier Reef are improved through the communication and adoption of sustainable best practices.

75% of the Authority’s science needs to inform management decisions and actions are being addressed.

Action taken on 85% of reported permissions non-compliance related offences.

740 dedicated compliance vessel patrol days funded or partially funded by the Field Management Program are undertaken in the World Heritage Area.

23% of the Marine Park is managed in accordance with an accredited Traditional Use of Marine Resources Agreement or an Indigenous Land Use Agreement.

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).

55% of visitors to the Great Barrier Reef use tourism operators which have been accredited as ‘high standard operators’. (c)

70% of visitors to Reef HQ Aquarium participate in talks and tours that deliver key messages about risks to the Great Barrier Reef.

233



2017-18 and beyond As above. As above with the following addition:The Great Barrier Reef Outlook Report 2019 demonstrates increasing levels of confidence for the Regions’ values.

Purposes (d) Ensure best available knowledge is captured and used to inform management decisions

Effective and efficient environmental regulation Strengthen engagement

(a) Performance criteria and targets for 2015-16 refer to the quantitative Key Performance Indicators (KPIs) from the 2015-16 Portfolio Budget Statements. Progress against all KPIs (qualitative and quantitative) will be reported in the Agency’s 2015-16 Annual Report.

(b) Performance criteria and targets for 2016-17 and beyond have changed to reflect new performance measures outlined in the 2015-16 Corporate Plan (shown in italics).

(c) The Great Barrier Reef Marine Park Authority recognises the ECO Certification Program operated by Ecotourism Australia as a certification scheme for the marine park and relies on independent certification to identify high standard tourism operations.

(d) Purposes refer to the strategies in the 2015-16 Corporate Plan. The 2016-17 Corporate Plan will be updated to enable alignment with the 2016-17 Portfolio Budget Statement.

234





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 Explanatory notes and analysis of budgeted financial statementsChanges in appropriation from 2015-16 to 2016-17 are the result of the efficiency dividend, shared and common services savings measures, funding received to improve reporting relating to the Trans-Pacific Partnership Agreement and the variation in Special Appropriation. The Special Appropriation derived from the Environmental Management Charge in 2015-16 and over the forward estimates is expected to be around $10 million.

Significant funding for management of the Great Barrier Reef is derived from related Government entities (e.g. the Department of the Environment), delivered through a number of Memorandum of Understanding agreements. The funding is tied to the delivery of specific activities over a set period of time.

The Authority is continually seeking to improve performance and reporting capacity with fewer resources. The Authority works with the Australian and Queensland governments to ensure the Great Barrier Reef Marine Park is well managed within the resources available.

The operating loss in 2015-16 reflects additional legal costs and depreciation expenses.

235




2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 21,272 21,462 21,157 18,015 17,588 Suppliers 19,794 17,936 17,146 9,302 9,101 Grants 10 10 10 10 10 Depreciation and amortisation 1,900 1,900 1,900 1,900 1,900 Payments to Queensland Government for Field Management Program 12,226 12,226 12,226 12,226 12,226 Total expenses 55,202 53,534 52,439 41,453 40,825 LESS: OWN-SOURCE INCOME Own-source revenue Receipts from Queensland Government for Field Management Program 8,372 8,372 8,372 8,372 8,372 Permit Assessment Fees 340 340 340 340 340 Reef HQ Aquarium 2,630 2,630 2,630 2,630 2,630 Other 50 4,450 50 50 50 Grants received from Government 12,014 13,617 12,507 912 - Total own-source revenue 23,406 29,409 23,899 12,304 11,392 Gains Other 55 55 55 55 55 Total gains 55 55 55 55 55 Total own-source income 23,461 29,464 23,954 12,359 11,447 Net (cost of)/contribution by services (31,741) (24,070) (28,485) (29,094) (29,378)Revenue from Government 27,361 27,090 27,105 27,194 27,478 Surplus/(deficit) attributable to the Australian Government (4,380) 3,020 (1,380) (1,900) (1,900)Total comprehensive income/(loss) (4,380) 3,020 (1,380) (1,900) (1,900)Total comprehensive income/(loss) attributable to the Australian Government (4,380) 3,020 (1,380) (1,900) (1,900)

236


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


2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations.

(2,480) 4,920 520 - - 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

(4,380) 3,020 (1,380) (1,900) (1,900)Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation


237



Estimated actual

$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 508 508 508 508 508Trade and other receivables 85 85 85 85 85Appropriations receivable 6,167 10,567 10,567 10,567 10,567Closing balance of the Field Management Special Account 1,312 1,312 1,312 1,312 1,312GST receivable 342 342 342 342 342Other financial assets 204 204 204 204 204


Land and buildings 16,764 16,369 15,974 15,579 15,136Property, plant and equipment 2,231 2,128 2,030 1,616 1,296Intangibles 2,197 2,237 2,127 1,817 1,467Inventories 89 89 89 89 89Other non-financial assets 1,269 1,269 1,269 1,269 1,269


Suppliers 3,661 3,661 3,661 3,661 3,661Other payables 263 263 263 263 263


Employee provisions 6,203 6,203 6,203 6,203 6,203Other provisions 74 74 74 74 74

Total provisions 6,277 6,277 6,277 6,277 6,277


Net assets 20,967 24,909 24,306 23,187 22,074

EQUITY* Parent entity interest


deficit) (15,346) (12,326) (13,706) (15,606) (17,506)

Total parent entity interest 20,967 24,909 24,306 23,187 22,074 Total equity 20,967 24,909 24,306 23,187 22,074


238



Retained earnings

$'000

Asset revaluation

reserve$'000

Contributed equity/

capital$'000

Total equity $'000


period (15,346) 13,168 23,145 20,967 Adjusted opening balance (15,346) 13,168 23,145 20,967 Comprehensive income

Surplus/(deficit) for the period 3,020 - - 3,020 Total comprehensive income 3,020 - - 3,020

of which: Attributable to the Australian

Government 3,020 - - 3,020 Transactions with owners

Contributions by ownersEquity injection - Appropriation - - 150 150 Departmental capital budget - - 772 772

Sub-total transactions with owners - - 922 922 Closing balance attributable to the Australian Government (12,326) 13,168 24,067 24,909


239



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 30,737 22,690 27,105 27,194 27,478 Grants received from Government 12,014 13,617 12,507 912 -


Receipts from Queensland Government for Field Management Program 8,372 8,372 8,372 8,372 8,372

Net GST received 120 120 120 100 100 Other - 4,400 - - -


Employees 20,977 21,167 20,862 18,015 17,588 Suppliers 18,359 16,501 15,711 8,347 8,146 Payments to Queensland

Government for Field Management Program 12,226 12,226 12,226 12,226 12,226

Net GST paid 1,620 1,620 1,620 1,000 1,000 Grants 10 10 10 10 10 Other 295 295 295 - -

Total cash used 53,487 51,819 50,724 39,598 38,970 Net cash from/(used by) operating activities 896 520 520 - - INVESTING ACTIVITIES Cash used

Purchase of property, plant and equipment and intangibles 1,298 1,442 1,297 781 787

Total cash used 1,298 1,442 1,297 781 787 Net cash from/(used by) investing activities (1,298) (1,442) (1,297) (781) (787)FINANCING ACTIVITIES Cash received

Contributed equity 778 922 777 781 787 Total cash received 778 922 777 781 787 Net cash from/(used by) financing activities 778 922 777 781 787

240


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


$'000

2016-17Budget

$'000


$'000


$'000


$'000

Net increase/(decrease) in cash held 376 - - - -




241




2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 778 772 777 781 787 Equity injections - Bill 2 - 150 - - -

Total new capital appropriations 778 922 777 781 787 Provided for:

Purchase of non-financial assets 778 922 777 781 787 Total items 778 922 777 781 787


Funded by capital appropriations (a) - 150 - - - Funded by capital appropriation - DCB (b) 778 772 777 781 787

Funded internally from departmental resources (c) 520 520 520 - -

TOTAL 1,298 1,442 1,297 781 787

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 1,298 1,442 1,297 781 787 Total cash used to acquire assets 1,298 1,442 1,297 781 787

Prepared on Australian Accounting Standards basis.(a) Appropriation Bill (No.2) 2016-17.(b) Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental Capital Budgets.(c) Includes the following sources of funding:

- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the Departmental Capital Budget)

- internally developed assets- s 74 Retained revenue receipts.

242



Buildings

$'000


equipment$'000

Computer software

and intangibles

$'000Total$'000

As at 1 July 2016Gross book value 17,638 2,887 5,238 25,763

Accumulated depreciation/ amortisation and impairment (874) (656) (3,041) (4,571)

Opening net book balance 16,764 2,231 2,197 21,192 Capital asset additions


By purchase - appropriation equity (a) - - 150 150 By purchase - appropriation ordinary

annual services (b) 450 542 300 1,292 Total additions 450 542 450 1,442 Other movements Depreciation/amortisation expense (845) (645) (410) (1,900)Total other movements (845) (645) (410) (1,900)

As at 30 June 2017Gross book value 18,088 3,429 5,688 27,205

Accumulated depreciation/ amortisation and impairment (1,719) (1,301) (3,451) (6,471)

Closing net book balance 16,369 2,128 2,237 20,734 Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill (No.2)


2016-17 for depreciation/amortisation expenses, Departmental Capital Budgets or other operational expenses.

243



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


e$'000


$'000

OWN-SOURCE INCOME Own-source revenue Non-taxation revenue

Rental income 285 285 285 285 285 Environmental Management Charge 10,000 10,000 10,000 10,000 10,000

Total non-taxation revenue 10,285 10,285 10,285 10,285 10,285

Total own-source revenue administered on behalf of Government 10,285 10,285 10,285 10,285 10,285 Net cost of/(contribution by) services (10,285) (10,285) (10,285) (10,285) (10,285)

Surplus/(deficit) 10,285 10,285 10,285 10,285 10,285 Total comprehensive income/(loss) 10,285 10,285 10,285 10,285 10,285


244




$'000

2016-17Budget

$'000


$'000


$'000


$'000


Trade and other receivables 2,378 2,378 2,378 2,378 2,378 Total financial assets 2,378 2,378 2,378 2,378 2,378 Non-financial assets

Land and buildings 3,880 3,880 3,880 3,880 3,880 Total non-financial assets 3,880 3,880 3,880 3,880 3,880 Total assets administered on behalf of Government 6,258 6,258 6,258 6,258 6,258 LIABILITIES Payables

Other payables 2,378 2,378 2,378 2,378 2,378 Total payables 2,378 2,378 2,378 2,378 2,378 Total liabilities administered on behalf of Government 2,378 2,378 2,378 2,378 2,378 Net assets/(liabilities) 3,880 3,880 3,880 3,880 3,880


245



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Rental income 285 285 285 285 285 Environmental Management

Charge 10,000 10,000 10,000 10,000 10,000

Total cash received 10,285 10,285 10,285 10,285 10,285 Net cash from/(used by) operating activities 10,285 10,285 10,285 10,285 10,285 Net increase/(decrease) in cash held 10,285 10,285 10,285 10,285 10,285

Cash and cash equivalents at beginning of reporting period - - - - -

Cash to Official Public Account for: - Special Appropriation (10,000) (10,000) (10,000) (10,000) (10,000)- Other (285) (285) (285) (285) (285)

Total cash to Official Public Account (10,285) (10,285) (10,285) (10,285) (10,285)Cash and cash equivalents at end of reporting period - - - - -


246


Table 3.10: Statement of administered asset movements (Budget year 2016-17)

Land$'000

Total$'000

As at 1 July 2016Gross book value 3,880 3,880 Accumulated depreciation/amortisation and impairment - -

Opening net book balance 3,880 3,880 CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase - appropriation equity (a) - - Total additions - - Other movements

Depreciation/amortisation expense - - Total other movements - -

As at 30 June 2017Gross book value 3,880 3,880 Accumulated depreciation/amortisation and impairment - -

Closing net book balance 3,880 3,880 Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to Administered Assets and Liabilities provided through Appropriation Bill

(No. 2) 2016-17.

247

Sydney Harbour Federation Trust


248

SYDNEY HARBOUR FEDERATION TRUST




250

Sydney Harbour Federation Trust Budget Statements

SYDNEY HARBOUR FEDERATION TRUST



The Sydney Harbour Federation Trust manages some of Sydney’s most renowned and prominent foreshore lands on Sydney Harbour. These sites are the former Defence lands at Middle Head–Georges Heights and Chowder Bay in Mosman, the North Head former School of Artillery, Macquarie Lightstation near South Head, Woolwich Dock and Parklands, Cockatoo and Snapper Islands, the former Marine Biological Station at Watsons Bay and the former HMAS Platypus at Neutral Bay.

The 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, while conserving the environmental integrity and unique heritage of the sites.

Over its life the 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 2007 extension of the life of the Trust to 2033 has influenced the way the organisation views itself and its operations, with a renewed emphasis on its long-term financial sustainability.

The Trust’s goals over the forward estimates are to continue to focus on the sustainability of all of our precincts to ensure we leave them preserved for future generations. The Trust will continue to improve public awareness, access and appreciation of the natural and cultural values of the former Artillery School and North Fort at North Head. It will 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.

With the completion of the decontamination works at HMAS Platypus, Neutral Bay, the Trust will commence plans for partial opening of the site to the public. The Trust will prepare a more detailed plan for the rehabilitation


and adaptive re-use of the site post decontamination. The rehabilitation works for the site will continue in 2016-17 as a result of funding announced in the 2015-16 Portfolio Additional Estimates.

The Trust is now solely reliant on its own income generation. Apart from specific funding measures such as for the HMAS Platypus Remediation, it no longer receives 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.






254


Table 1.1: Sydney Harbour Federation Trust resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000

Opening balance/cash reserves at 1 July 41,911 56,274 Funds from Government Annual appropriations - other services (a)

Equity injection 20,000 - Total annual appropriations 20,000 - Total funds from Government 20,000 - Funds from other sources

Interest 227 260 Sale of goods and services 3,341 3,376 Other 12,765 13,457

Total funds from other sources 16,333 17,093 Total net resourcing for Sydney Harbour Federation Trust 78,244 73,367 2015-16 2016-17Average staffing level (number) 62 62

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) 2016-17.

255


1.3 BUDGET MEASURES

There are no Budget measures relating to the Trust in 2016-17.

256






257



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.

258




Table 2.1.1: Budgeted expenses for Outcome 1Outcome 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

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Program 1.1: Sydney Harbour Federation TrustRevenues from other independent sources 16,869 17,825 18,911 19,466 20,035

Total expenses for Program 1.1 16,869 17,825 18,911 19,466 20,035 Outcome 1 totals by resource typeRevenues from other independent sources 16,869 17,825 18,911 19,466 20,035



259




Outcome 1 – Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.Program 1.1 – Sydney Harbour Federation Trust

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.



2015-16 Urban Parklands - to preserve, enhance and promote the rich historical, cultural and natural values embodied in the Trust’s lands.

Review of existing site Plans completed and four year capital works program implemented.

Growth and Enterprise – grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Trust’s sites.

Future of conservancy finalised and strategic business development plan in place.

Engagement – extend public engagement and affinity with the Trust’s lands.

Four year public event program in place.

Innovation – achieve operational and business efficiencies.

Site interpretation inventory and gap analysis completed.New financial management system in place.Strategic people plan developed.

Asset Management – operate, maintain and upgrade the Trust’s facilities and infrastructure in an efficient and sustainable manner.

Capital and renewal work projects prioritised in line with Strategic Plan.

2016-17 Urban Parklands - to preserve, enhance and promote the rich historical, cultural and natural values embodied in the Trust’s lands.Growth and Enterprise – grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Harbour Trust’s sites.

Revised Plans drafted and stakeholder consultation completed with capital works executed to plan.North Head and HMAS Platypus commercial and public use strategy implemented.

260


Outcome 1 – Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.Program 1.1 – Sydney Harbour Federation Trust

Engagement – extend public engagement and affinity with the Trust’s lands.Innovation – achieve operational and business efficiencies.Asset Management – operate, maintain and upgrade the Harbour Trust’s facilities and infrastructure in an efficient and sustainable manner.

Public and grant partnerships in place and Strategic Marketing Plan in place for accommodation and venue hireCRM system utilised by property leasing and workforce plan revised and in place.Condition based asset survey completed for all infrastructure and parkland assets.Commence rehabilitation of HMAS Platypus.

2017-18 and beyond Urban Parklands - to preserve, enhance and promote the rich historical, cultural and natural values embodied in the Trust’s lands.Growth and Enterprise – grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Trust’s sites.Engagement – extend public engagement and affinity with the Trust’s lands.Innovation – achieve operational and business efficiencies.Asset Management – operate, maintain and upgrade the Harbour Trust’s facilities and infrastructure in an efficient and sustainable manner.

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.Platypus commercial and public use strategy implementedSite interpretation completed for major sites. Visitation increase by 2 to 5%.Enterprise Resource Planning system implemented. Reduction in regretted staff turnover < 5%.Majority of capital projects completed as per Program and on budget.

Purposes (b) 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.


Measure title – HMAS Platypus Remediation (reported in 2015-16 Portfolio Additional Estimates Statements)


(b) Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan.

261





3.1.1 Differences between entity resourcing and financial statementsThere are no differences between the resource information presented in the Budget Papers and Portfolio Budget Statements.

3.1.2 Explanatory notes and analysis of budgeted financial statementsIncome Statement

The Sydney Harbour Federation Trust has budgeted for a small operating surplus of $0.054 million in 2016–17.

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 revenue is estimated to grow by $0.71 million in 2016–17, 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 2016–17 financial year is $17.83 million, which reflects additional funds allocated to the Trust’s planned asset maintenance program. Resources will be focused on the continued preservation and conservation of our aging assets and improved tenant and visitor experiences. This reflects improvements in agency efficiencies and the allocation of additional 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 2016–17 the value of the Trust’s non-financial assets is estimated to increase to $340.91 million as a result of major

262


building and infrastructure asset upgrades on the former HMAS Platypus site.

An additional $20 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.

263




2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 6,592 6,798 7,009 7,255 7,509 Suppliers 7,833 8,523 9,349 9,597 9,851 Depreciation and amortisation 2,414 2,484 2,533 2,594 2,655 Write-down and impairment of assets 30 20 20 20 20 Total expenses 16,869 17,825 18,911 19,466 20,035 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 2,036 2,079 2,131 2,183 2,238 Interest 1,107 1,140 1,178 1,205 1,336 Rental income 12,225 12,937 14,510 15,233 15,585 Other 1,740 1,723 1,401 1,403 1,471 Total own-source revenue 17,108 17,879 19,220 20,024 20,630 Total own-source income 17,108 17,879 19,220 20,024 20,630

Net (cost of)/contribution by services 239 54 309 558 595 Surplus/(deficit) attributable to the Australian Government 239 54 309 558 595 Total comprehensive income/(loss) 239 54 309 558 595 Total comprehensive income/(loss) attributable to the Australian Government 239 54 309 558 595


264




2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 1,095 1,273 1,118 1,091 1,059 Trade and other receivables 951 842 801 771 750 Investments 55,179 45,454 35,029 35,429 35,829


Land and buildings 275,279 282,388 291,437 291,328 291,220 Infrastructure, plant and equipment 29,474 31,550 32,894 32,642 32,391 Heritage and collections 25,946 26,446 26,946 27,371 27,796 Intangibles 247 215 126 80 35 Inventories 80 110 80 110 140 Other non-financial assets 213 201 188 176 162


Suppliers 725 775 790 795 805 Other payables 3,148 2,964 2,779 2,595 2,412


Employee provisions 1,807 1,903 1,903 1,903 1,903 Total provisions 1,807 1,903 1,903 1,903 1,903 Total liabilities 5,680 5,642 5,472 5,293 5,120 Net assets 382,784 382,837 383,147 383,705 384,262 EQUITY* Parent entity interest

Contributed equity 277,735 277,735 277,735 277,735 277,735 Reserves 98,410 98,410 98,410 98,410 98,410 Retained surplus (accumulated deficit) 6,639 6,692 7,002 7,560 8,117

Total parent entity interest 382,784 382,837 383,147 383,705 384,262 Total equity 382,784 382,837 383,147 383,705 384,262


265



Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000


Total equity $'000


period 6,639 90,172 8,238 277,735 382,784 Adjustment for changes in accounting

policies (1) - - - (1)Adjusted opening balance 6,638 90,172 8,238 277,735 382,783 Comprehensive income

Surplus/(deficit) for the period 54 - - - 54 Total comprehensive income 54 - - - 54

of which: Attributable to the Australian

Government 54 - - - 54 Estimated closing balance as at 30 June 2017 6,692 90,172 8,238 277,735 382,837 Closing balance attributable to the Australian Government 6,692 90,172 8,238 277,735 382,837


266



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000



Interest 227 260 260 260 130 Net GST received 20 15 10 - -Other 12,765 13,457 14,580 15,303 15,293



Total cash used 15,120 15,380 16,546 17,051 17,046

Net cash from/(used by) operating activities 1,233 1,728 1,796 2,057 1,922 INVESTING ACTIVITIES Cash received

Investments 72,937 71,480 71,518 70,545 70,676 Total cash received 72,937 71,480 71,518 70,545 70,676 Cash used


Investments 88,650 60,875 60,175 70,000 70,000 Total cash used 96,355 73,030 73,470 72,630 72,630 Net cash from/(used by) investing activities (23,418) (1,550) (1,952) (2,085) (1,954)FINANCING ACTIVITIES Cash received

Contributed equity 20,000 - - - - Total cash received 20,000 - - - -

Net cash from/(used by) financing activities 20,000 - - - - Net increase/(decrease) in cash held (2,185) 178 (156) (28) (32)

Cash and cash equivalents at the beginning of the reporting period 3,280 1,095 1,273 1,117 1,089

Cash and cash equivalents at the end of the reporting period 1,095 1,273 1,117 1,089 1,057


267




2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS Equity injections - Bill 2 20,000 - - - -

Total new capital appropriations 20,000 - - - - Provided for:

Purchase of non-financial assets 20,000 - - - - Total items 20,000 - - - -


Funded by capital appropriations (a) 550 9,125 10,325 - -

Funded internally from departmental resources (b) 7,155 3,013 2,970 2,630 2,630

TOTAL 7,705 12,138 13,295 2,630 2,630

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 7,705 12,138 13,295 2,630 2,630 Total cash used to acquire assets 7,705 12,138 13,295 2,630 2,630

Prepared on Australian Accounting Standards basis.(a) Includes prior Appropriation Act 2/4/6 appropriations.(b) Includes the following sources of funding:

- donations and contributions- internally developed assets- own-source income

268



Land$'000

Buildings$'000


equipment$'000

Heritage and

culturalassets$'000

Computer software

and intangibles

$'000Total$'000

As at 1 July 2016Gross book value 197,058 79,596 32,947 25,946 634 336,181

Accumulated depreciation/ amortisation and impairment - (1,376) (3,473) - (387) (5,236)

Opening net book balance 197,058 78,220 29,474 25,946 247 330,945 Capital asset additions


By purchase - appropriation equity (a) 25 6,800 2,300 - - 9,125

By purchase - other 350 1,351 757 500 55 3,013 Total additions 375 8,151 3,057 500 55 12,138 Other movements

Depreciation/amortisation expense - (1,416) (981) - (87) (2,484)Total other movements - (1,416) (981) - (87) (2,484)

As at 30 June 2017Gross book value 197,433 87,747 36,004 26,446 689 348,319

Accumulated depreciation/ amortisation and impairment - (2,792) (4,454) - (474) (7,720)

Closing net book balance 197,433 84,955 31,550 26,446 215 340,599 Prepared on Australian Accounting Standards basis.(a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Act No.4

2015-16.

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2016-17 portfolio budget statements environment … · web viewgreat barrier reef marine park...

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