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PORTFOLIO BUDGET STATEMENTS 2014–15BUDGET RELATED PAPER NO. 1.1

AGRICULTURE PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OFAPPROPRIATIONS SPECIFIED BY OUTCOMESAND PROGRAMMES BY AGENCY

© Commonwealth of Australia 2014

ISBN 9781 7600 46 132

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18 Marcus Clarke Street Canberra City 2601Email: [email protected]

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mailto:[email protected]

THE HON. BARNABY JOYCE MPPARLIAMENT HOUSE

CANBERRA 2600

President of the SenateAustralian SenateParliament HouseCANBERRA ACT 2600

SpeakerHouse of RepresentativesParliament HouseCANBERRA ACT 2600

Dear Mr PresidentDear Madam Speaker

I hereby submit Portfolio Budget Statements in support of the 2014–15 Budget for the Agriculture 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

Barnaby Joyce

Minister for Agriculture

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 not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion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 Jo Evans, Chief Finance Officer, Department of Agriculture on (02) 6272 3270.

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au.

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User Guideto the

Portfolio Budget Statements

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USER GUIDE

The purpose of the 2014–15 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and Special Accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2014–15 (or Appropriation Bill [Parliamentary Departments] No. 1 2014–15 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

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

As required under section 12 of the Charter of Budget Honesty Act 1998, non-general Government sector entities are not consolidated into the Commonwealth general Government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

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CONTENTS

Portfolio Overview 1Agriculture Portfolio Overview 3

Agency Resources and Planned Performance 7Department of Agriculture 9Australian Grape and Wine Authority 101Cotton Research and Development Corporation 117Fisheries Research and Development Corporation 133Grains Research and Development Corporation 153Rural Industries Research and Development Corporation 171Australian Fisheries Management Authority 191Australian Pesticides and Veterinary Medicines Authority 217

Glossary 237

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Portfolio Overview

AGRICULTURE PORTFOLIO OVERVIEW

Minister and Portfolio Responsibilities

The Agriculture portfolio supports the sustainability, profitability and competitiveness of Australia’s agriculture, food, fisheries and forestry industries. The Minister for Agriculture and the Parliamentary Secretary to the Minister for Agriculture oversee the portfolio.

From 1 July 2014 the portfolio will consist of:

The Australian Government Department of Agriculture.

Two prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act):

– Australian Fisheries Management Authority

– Australian Pesticides and Veterinary Medicines Authority

One statutory marketing authority under the Commonwealth Authorities and Companies Act 1997 (CAC Act):

– Australian Grape and Wine Authority

Four research and development corporations under the CAC Act:

– Cotton, Fisheries, Grains and Rural Industries.

The Australian Fisheries Management Authority and the Australian Pesticides and Veterinary Medicines Authority also undertake regulatory roles.

The Grape and Wine Research and Development Corporation and Wine Australia Corporation will merge to form a new statutory marketing authority, the Australian Grape and Wine Authority, to commence on 1 July 2014.

Each agency within the portfolio has at least one outcome and programme. Details are provided in each agency’s section of this document.

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Figure 1: Agriculture Portfolio Structure and Outcomes

Minister for AgricultureThe Hon. Barnaby Joyce MP

Parliamentary Secretary to the Minister for AgricultureSenator the Hon. Richard Colbeck

Australian Government Department of AgricultureSecretary: Dr Paul Grimes

Outcome 1: More sustainable, productive, internationally competitive and profitable Australian agricultural, food and fibre industries through policies and initiatives that promote better resource management practices, innovation, self-reliance

and improved access to international markets.

Outcome 2: Safeguard Australia’s animal and plant health status to maintain overseas markets and protect the economy and environment from the impact of exotic pests and diseases, through risk assessment, inspection and certification and

the implementation of emergency response arrangements for Australian agricultural, food and fibre industries.

Australian Pesticides and Veterinary Medicines Authority

Chief Executive Officer: Ms Kareena ArthyOutcome: Protection of the health and safety of people, animals, the environment, and agricultural and livestock

industries through regulation of pesticides and veterinary medicines.

Cotton Research and Development CorporationExecutive Director: Mr Bruce Finney

Outcome: Adoption of innovation that leads to increased productivity, competitiveness and

environmental sustainability through investment in research and development that benefits the Australian

cotton industry and the wider community.

Grains Research and Development CorporationManaging Director: Mr John Harvey

Outcome: New information and products that enhance the productivity, competitiveness and environmental

sustainability of Australian grain growers and benefit the industry and wider community, through planning,

managing and implementing investments in grains research and development.

Rural Industries Research and Development Corporation

Managing Director: Mr Craig BurnsOutcome: Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries

and furthers understanding of national rural issues through research and development in government-

industry partnership.

Australian Fisheries Management AuthorityChief Executive Officer: Dr James Findlay

Outcome: Ecologically sustainable and economically efficient Commonwealth fisheries, through

understanding and monitoring Australia’s marine living resources and regulating and monitoring commercial fishing, including domestic licensing and deterrence of

illegal foreign fishing.

Fisheries Research and Development CorporationExecutive Director: Dr Patrick Hone

Outcome: Increased knowledge that fosters sustainable economic, environmental and social benefits for the

Australian fishing industry; including indigenous, recreational, commercial and aquaculture sectors, and

the community; through investing in research, development and adoption.

Australian Grape and Wine AuthorityNote

TBAOutcome: Foster and enable a competitive Australian

wine industry by investing in research and development, building markets, disseminating knowledge and

ensuring compliance.

Note: The Grape and Wine Research and Development Corporation and Wine Australia Corporation will merge to form a new statutory marketing authority, the Australian Grape and Wine Authority (AGWA), to commence on 1 July 2014. An interim outcome statement is included in this document. A new outcome statement will be developed by the AGWA board once it is in place.

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Portfolio Overview

PORTFOLIO RESOURCESTable 1 shows the total new resources provided to the portfolio in the 2014–15 Budget year by agency.Table 1: Portfolio Resources 2014–15

Special Receipts TotalBill No. 1 Bill No. 2 Special accounts

$'000 $'000 $'000 $'000 $'000 $'000Department of Administered appropriations 155,283 450,000 703,816 - - 1,309,099 Departmental appropriations 302,591 80 - 365,529 22,222 690,422 Total: 457,874 450,080 703,816 365,529 22,222 1,999,521 Australian Grape and Wine AuthorityAdministered appropriations - - - - - - Departmental appropriations - - - - 34,667 34,667 Total: - - - - 34,667 34,667 Cotton Research and Development Administered appropriations - - - - - - Departmental appropriations - - - - 20,690 20,690 Total: - - - - 20,690 20,690 Fisheries Research and Development Administered appropriations - - - - - - Departmental appropriations - - - - 27,001 27,001 Total: - - - - 27,001 27,001 Grains Research and Development Administered appropriations - - - - - - Departmental appropriations - - - - 188,615 188,615 Total: - - - - 188,615 188,615 Rural Industries Research and Development Administered appropriations - - - - - - Departmental appropriations - - - - 20,076 20,076 Total: - - - - 20,076 20,076 Australian Fisheries Management AuthorityAdministered appropriations 5,309 - - - - 5,309 Departmental appropriations 21,199 - - 17,104 3,104 41,407 Total: 26,508 - - 17,104 3,104 46,716 Australian Pesticides and Veterinary Medicines AuthorityAdministered appropriations - - - - - - Departmental appropriations 743 - - 29,620 339 30,702 Total: 743 - - 29,620 339 30,702 Portfolio total 485,125 450,080 703,816 412,253 316,714 2,367,988 Less amounts transferred w ithin portfolio (255,191)

2,112,797

Appropriation

Resources available within portfolio:

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Portfolio Overview

Agency Resources and Planned Performance

Department of Agriculture 9

Australian Grape and Wine Authority 101

Cotton Research and Development Corporation117

Fisheries Research and Development Corporation 133

Grains Research and Development Corporation 153

Rural Industries Research and Development Corporation 171

Australian Fisheries Management Authority 191

Australian Pesticides and Veterinary Medicines Authority 217

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DEPARTMENT OF AGRICULTURE

Section 1: Agency Overview and Resources 111.1 Strategic Direction Statement111.2 Agency Resource Statement 141.3 Budget Measures 19

Section 2: Outcomes and Planned Performance 242.1 Outcomes and Performance Information 24

Section 3: Explanatory Tables and Budgeted Financial Statements83

3.1 Explanatory Tables 833.2 Budgeted Financial Statements 86

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DEPARTMENT OF AGRICULTURE

Section 1: Agency Overview and Resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of Agriculture’s mission is to sustain the way of life and prosperity of all Australians.

To achieve this the department leads the development of policy advice and provides services to improve the productivity, competitiveness and sustainability of agriculture, fisheries, forestry and related industries; and assists people and goods to move in and out of Australia, while managing the risks to the environment and animal, plant and human health.

The department achieves this through its two outcomes:

Outcome 1: More sustainable, productive, internationally competitive and profitable Australian agricultural, food and fibre industries through policies and initiatives that promote better resource management practices, innovation, self-reliance and improved access to international markets.

Outcome 2: Safeguard Australia’s animal and plant health status to maintain overseas markets and protect the economy and environment from the impact of exotic pests and diseases, through risk assessment, inspection and certification and the implementation of emergency response arrangements for Australian agricultural, food and fibre industries.

In 2014–15 the portfolio will place priority under both outcomes on:

developing and implementing deregulation initiatives to reduce the regulatory burden on business and farmers as a result of Agriculture portfolio activities, in particular for the regulation of biosecurity and agricultural and veterinary chemicals;

working closely with other agencies, industry and foreign governments to maintain and increase access to global markets for Australia’s agriculture, fisheries, forestry and related industry export products;

supporting the development of the White Paper on Agricultural Competitiveness and the White Paper on the Development of Northern Australia by the Department of the Prime Minister and Cabinet;

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delivering high quality forecasts, research and statistics to support effective decision making by the Government and the private sector; and

maintaining a positive workplace in times of change.

For Outcome 1, additional priorities include:

implementing the comprehensive package of support for drought affected farmers announced by the Government in February 2014;

implementing the Farm Household Allowance that will provide support to farmers experiencing financial hardship, irrespective of the cause, to access basic support for their families;

supporting rural research, development and extension, including through research and development corporations;

improving access to agricultural and veterinary chemicals, including minor use chemicals;

supporting commercial and recreational fishing peak bodies to participate more fully in fisheries policy development;

supporting a ministerial working group to identify infrastructure projects to deliver Australia’s future water supply needs; and

extending Regional Forest Agreements to provide resource security and a stable investment environment to the forestry industry.

For Outcome 2, additional priorities include:

providing efficient and effective biosecurity and export certification services within a risk based approach;

strengthening biosecurity and quarantine arrangements, including emergency response arrangements for incursions of exotic pests and disease;

supporting the eradication and management of nationally significant agricultural and environmental plant and animal pests and diseases;

assisting small exporters with the costs of gaining export certification;

initiating work to better understand and manage marine pests;

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Department of Agriculture Budget Statements

progressing biosecurity reforms to more effectively and efficiently manage biosecurity risk in the context of continued growth in trade volumes;

progressing the transition of post entry quarantine operations to a single facility, which will occur from late 2015; and

conducting a review of the structure of fees and charges under cost recovery arrangements to ensure that they are appropriate as part of a sustainable funding model for biosecurity and export certification services.

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1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Department of Agriculture Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014

Estimate Proposed Total Actualof prior at Budget estimate available

year amounts appropriation available in

2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000

Ordinary annual servicesDepartmental appropriation

Prior year departmental appropriation1 32,410 - 32,410 36,718 Departmental appropriation2,3 - 302,591 302,591 326,243 s. 31 Relevant agency receipts4 - 22,222 22,222 51,034 Total 32,410 324,813 357,223 413,995

Administered expensesOutcome 1 - 137,415 137,415 190,525 Outcome 2 - 17,868 17,868 14,744 Total - 155,283 155,283 205,269

Total ordinary annual services A 32,410 480,096 512,506 619,264

Other services5

Departmental non-operatingOpening balance1 - - - - Equity injections - 80 80 1,465 Total - 80 80 1,465

Administered non-operatingAdministered assets and liabilities - 450,000 450,000 250,000 Total - 450,000 450,000 250,000

Total other services B - 450,080 450,080 251,465 Total available annual

appropriations (A+B) 32,410 930,176 962,586 870,729 Special appropriationsSpecial appropriations limited

by criteria/entitlementAustralian Animal Health Council (Live-stock Industries) Funding Act 1996, s. 5 - 6,768 6,768 6,753 Australian Grape and Wine Authority Act 2013, s.32 – payments to the Authority - 28,194 28,194 - Australian Meat and Live-stock Industry Act 1997, s. 63(2) –payments to the industry marketing body - 74,517 74,517 74,805

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Continued on following pages

Table 1.1: Department of Agriculture Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014 (continued)



2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000

Australian Meat and Live-stock Industry Act 1997, s. 64(2) – payments to the industry research body - 24,769 24,769 24,434 Australian Meat and Live-stock Industry Act 1997, s. 64A(2) – payments to the livestock export marketing body - 3,225 3,225 3,432 Australian Meat and Live-stock Industry Act 1997, s. 64B(2) – payments to the livestock export research body - 806 806 733 Australian Meat and Live-stock Industry Act 1997, s. 64C(2) – payments to the meat processor marketing body - 6,028 6,028 7,090 Australian Meat and Live-stock Industry Act 1997, s. 64D(2) – payments to the meat processor research body - 10,717 10,717 12,758 Australian Meat and Live-stock Industry Act 1997, s. 66(1) – Commonw ealth contribution to industry research body - 43,871 43,871 45,480 Dairy Produce Act 1986, s. 6(1) - 52,822 52,822 52,569 Egg Industry Service Provision Act 2002, s. 8(1) - 8,171 8,171 8,290 Farm Household Support Act 1992, s. 57(3) – Exceptional Circumstances Relief Payments - - - 50 Farm Household Support Act 2014, s. 105 – payments for Farm Household Allow ance - 27,171 27,171 - Forestry Marketing and Research and Development Services Act 2007, s. 9(1) payments and matching payments to an industry services body and - 7,860 7,860 7,668 Horticulture Marketing and Research and Development Services Act 2000, s. 16(9) - 86,826 86,826 82,884


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2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000

Pig Industry Act 2001, s. 10(1) - 18,424 18,424 18,754 Plant Health Australia (Plant Industries) Funding Act 2002, - 1,655 1,655 1,770 Plant Health Australia (Plant Industries) Funding Act 2002,s. 10B - 604 604 619 Primary Industries Research and Development Act 1989, s. 30(3) – Cotton R&D Corporation - 17,131 17,131 20,604 Primary Industries Research and Development Act 1989, s. 30(3) – Grains R&D Corporation – Other Grains - 70,942 70,942 80,660 Primary Industries Research and Development Act 1989, s. 30(3) – Grains R&D Corporation - 103,793 103,793 102,435 Primary Industries Research and Development Act 1989, s. 30(3) – Grape and Wine R&D - - - 24,084 Primary Industries Research and Development Act 1989, s. 30(3) – Rural Industries R&D - 7,250 7,250 9,133 Primary Industries Research and Development Act 1989, s. 30(3) – Sugar R&D Corporation - - - 188 Primary Industries Research and Development Act 1989, s. 30A(3) & s. 30B(9) – Fisheries R&D Corporation - 18,287 18,287 18,161 Sugar Research and Development Services Act 2013, s. 7 – payment to the - 27,485 27,485 27,775 Wine Australia Corporation Act 1980, s. 32 - - - 5,860 Wool Services Privatisation Act 2000, s. 31(4) - 56,500 56,500 60,140

Total special appropriations C - 703,816 703,816 697,129 Total appropriations excluding

Special Accounts (A+B+C) 32,410 1,633,992 1,666,402 1,567,858 Continued on following pages

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2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000

Special AccountsOpening balance6 30,112 - 30,112 54,704 Appropriation receipts7 - 151,478 151,478 158,284 Non-appropriation receipts toSpecial Accounts - 365,529 365,529 343,087

Total Special Accounts D 30,112 517,007 547,119 556,075 Total resourcing (A+B+C+D) 62,522 2,150,999 2,213,521 2,123,933 Less appropriations draw n fromannual appropriations aboveand credited to Special Accounts - (151,478) (151,478) (158,284)

Less appropriations draw n fromannual and special appropriationsabove and credited to CAC Act and FMA Act bodies - (255,191) (255,191) (273,636) Total net resourcing for Agriculture 62,522 1,744,330 1,806,852 1,692,013

1. Estimated adjusted balance carried forward from previous year.2. Appropriation Bill (No. 1) 2014–15.3. Includes an amount of $9.9 million in 2014–15 for the Departmental Capital Budget (refer to table 3.2.5

for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4. s. 31 relevant agency receipts – estimate.5. Appropriation Bill (No. 2) 2014–15.6. Estimated opening balance for Special Accounts (less ‘Special Public Money’ held in a Service for Other

Entities and Trust Moneys Special Accounts (SOETM)). For further details on Special Accounts see Table 3.1.1.

7. Appropriation receipts from annual appropriation for 2014–15 included above.

Reader note: All figures are GST exclusive.

Continued on following page

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Table 1.1: Department of Agriculture Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014 (continued)Third party payments from and on behalf of other agencies

Appropriation 2014–15 2013–14Type $'000 $'000

FMA Act s. 31 8,133 26,257 8,133 26,257

Department of Human ServicesBill 1 - 7,542 Bill 1 3,355 2,198

Special - 50

Special 27,171 - 30,526 9,790

provision of services Bill 1 51,634 73,926

Bill 1 145 142 Special 28,194 -

Cotton R&D Corporation Special 17,131 20,604 Fisheries R&D Corporation Special 18,287 18,161 Grains R&D Corporation Special 174,735 183,095

Special - 24,084 Bill 1 9,449 11,319

Special 7,250 9,133 Sugar R&D Corporation Special - 188 Wine Australia Corporation Bill 1 - 1,050 Wine Australia Corporation Special - 5,860 Total payments to portfolio bodies 255,191 273,636

Grape and Wine R&D CorporationRural Industries R&D CorporationRural Industries R&D Corporation

Payments made by other agencies on behalf of Agriculture

Payments made to CAC Act and FMA Act bodies w ithin the portfolio

Transitional Farm Family Payment

Total receipts received from other agencies

Receipts received from other agencies for the provision of services

Department of the Environment

Australian Pesticides and Veterinary Medicines Authority

Interim Farm Household Allow anceFarm Household Support Act 1992, s. 57(3) – Exceptional Circumstances Relief PaymentsFarm Household Support Act 2014, s. 105 – payments for Farm Household Allow ance

Total payments made by other agenciesPayments made to other agencies for the

Australian Grape and Wine Authority

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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the department are detailed in Budget Paper No. 2, Budget Measures 2014–15 and are summarised below.

Table 1.2: Department of Agriculture 2014–15 Budget measuresPart 1: Measures announced since the 2013–14 MYEFO

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Revenue measuresBiosecurity services for imports and live animal exports – ensuring full cost recovery1 2.1

Administered revenues - nfp nfp nfp nfpDepartmental revenues - nfp nfp nfp nfp

Total - nfp nfp nfp nfp

Changes to agricultural production levies2

1.5, 2.1, 2.2

Administered revenues - 3,291 3,291 3,291 3,291 Departmental revenues - - - - -

Total - 3,291 3,291 3,291 3,291 Total revenue measures

Administered - 3,291 3,291 3,291 3,291 Departmental - - - - -

Total - 3,291 3,291 3,291 3,291 Expense measuresA Competitive Agriculture Sector – boosting farm profits through rural research and development 1.10

Administered expenses - 19,291 29,295 29,299 19,194 Departmental expenses - 709 705 701 806

Total - 20,000 30,000 30,000 20,000 A Competitive Agriculture Sector – improved access to Agricultural and Veterinary Chemicals 1.10

Administered expenses - 350 1,718 2,532 1,930 Departmental expenses - 350 382 368 371

Total - 700 2,100 2,900 2,301 A Competitive Agriculture Sector – stronger biosecurity and quarantine arrangements 2.2

Administered expenses - 2,554 1,853 1,888 1,926 Departmental expenses - 3,039 2,872 2,861 2,913

Total - 5,593 4,725 4,749 4,839 A Competitive Agriculture Sector – support for small exporters 2.1

Administered expenses - - 513 2,564 2,050 Departmental expenses - 4,140 1,965 1,888 1,880

Total - 4,140 2,478 4,452 3,930

Programme


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Table 1.2: Department of Agriculture 2014–15 Budget measures (continued)Part 1: Measures announced since the 2013–14 MYEFO (continued)

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

A more competitive and sustainable f isheries sector3

1.2, 1.4, 2.2

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

Total - - - - - Agriculture Advancing Australia – International Agricultural Cooperation programme – reduced funding 1.13

Administered expenses - - (600) (600) (600) Departmental expenses - - - - -

Total - - (600) (600) (600) Australian Animal Welfare Strategy – cessation 1.10

Administered expenses - - (1,066) (1,086) (1,108) Departmental expenses - - - - -

Total - - (1,066) (1,086) (1,108) Biosecurity services for imports and live animal exports – ensuring full cost recovery1 2.1

Administered revenues - nfp nfp nfp nfpDepartmental revenues - nfp nfp nfp nfp

Total - nfp nfp nfp nfpCease indexation of the Clean Energy Supplement 1.12

Administered expenses - (3) (13) (33) (49) Departmental expenses - - - - -

Total - (3) (13) (33) (49)

Changes to agricultural production levies2

1.5, 2.1, 2.2

Administered expenses - 3,291 3,291 3,291 3,291 Departmental expenses - - - - -

Total - 3,291 3,291 3,291 3,291 Efficiency Dividend – a further temporary increase of 0.25 per cent ALL

Administered expenses - - - - - Departmental expenses - (725) (1,540) (2,263) (2,252)

Total - (725) (1,540) (2,263) (2,252)

Exotic Disease Preparedness Programme – cessation 2.2


Total - - - - -

Programme


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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Fisheries Resources Research Fund – reduced funding 1.4

Administered expenses - - (1,300) (1,300) (1,300) Departmental expenses - - - - -

Total - - (1,300) (1,300) (1,300) Leveraging Australia's Brand for Food – cessation 1.13

Administered expenses - (880) (90) (70) - Departmental expenses - (7) (7) (7) -

Total - (887) (97) (77) - Live Animal Exports – Business Assistance Supply Chain and Official Development Assistance (Improved Animal Welfare Programme) – 1.10

Administered expenses - (2,300) - - - Departmental expenses - - - - -

Total - (2,300) - - - Maintain eligibility thresholds for Australian Government payments for three years 1.12


Total - - - - -

National Landcare Programme – establishment4 1.2

Administered expenses - (9,544) (4,405) (7,801) (35,538) Departmental expenses - (300) (600) (1,000) (1,600)

Total - (9,844) (5,005) (8,801) (37,138) Payments of memberships to international commodity organisations – changed arrangements

1.4, 1.7, 1.10

Administered expenses - (1,711) (1,733) (1,756) (1,780) Departmental expenses - - - - -

Total - (1,711) (1,733) (1,756) (1,780) Rural Industries Research and Development Corporation – reduced funding 1.10

Administered expenses - (2,000) (3,000) (3,000) (3,000) Departmental expenses - - - - -

Total - (2,000) (3,000) (3,000) (3,000) Total expense measures

Administered - 9,048 24,463 23,928 (14,984) Departmental - 7,206 3,777 2,548 2,118

Total - 16,254 28,240 26,476 (12,866)

Programme


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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Capital measuresA Competitive Agriculture Sector – stronger biosecurity and quarantine arrangements 2.2

Administered capital - - - - - Departmental capital - 80 5 5 5

Total - 80 5 5 5 Efficiency Dividend – a further temporary increase of 0.25 per cent ALL

Administered capital - - - - - Departmental capital - (25) (52) (78) (78)

Total - (25) (52) (78) (78) Total capital measures

Administered - - - - - Departmental - 55 (47) (73) (73)

Total - 55 (47) (73) (73)

Programme


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1. Fees will be adjusted for import clearance, seaports, post entry animal quarantine and live animal exports. The additional revenue is not for publication due to ongoing consultation with the relevant industries. The new fees will come into effect on 1 July 2014.

2. The measure for ‘Changes to agricultural production levies’ is reflected under both the revenue and expense measure headings. The changes to the agricultural production levies are as follows:

2013–14 2014–15 2015–16 2016–17 2017–18Title $'000 $'000 $'000 $'000 $'000

1. Increase the rate of the marketing component of the mushroom levy from $1.62 per kg to $3.24 per kg of mushroom spawn. - 2,062 2,062 2,062 2,062

2. Increase the rate of the research and development (R&D) component of the mushroom levy from $0.54 per kg to $1.08 per kg of mushroom spawn. - 687 687 687 687

Total revenue impact - 2,749 2,749 2,749 2,749 Total expense impact - 2,749 2,749 2,749 2,749

1. Increase the R&D levy and charge from $1.60 per tonne to $2.90 per tonne. - 322 322 322 322

2. Reduce the National Residue Survey levy and charge from $0.40 per tonne to $0.00 per tonne.

- (94) (94) (94) (94) 3. Introduce a statutory levy and charge

component for marketing at a rate of $1.00 per tonne.

- 236 236 236 236 4. Establish an Emergency P lant P est

Response (EP P R) levy and charge set at $0.00 per tonne.

- - - - - 5. Establish a P lant Health Australia (P HA)

subscription levy and charge set at $0.10 per tonne. - 7 7 7 7

Total revenue impact - 471 471 471 471 Total expense impact - 471 471 471 471

1. Increase the rate of the EP P R component of the mango levy/charge from 0.000 centsper kg to 0.114 cents per kg. - 56 56 56 56

2. Introduce a P HA membership component as part of the mango levy/export charge at 0.029 cents per kg. - 3 3 3 3

3. Increase to Horticulture Australia Limited R&D based on the estimated P HA levy that will be raised over and above the P HA membership fee.

- 11 11 11 11 Total revenue impact - 70 70 70 70 Total expense impact - 70 70 70 70

- 3,291 3,291 3,291 3,291 - 3,291 3,291 3,291 3,291 Total changes to agricultural levies – Expense

Total changes to agricultural levies – Revenue

TreatmentMushroom levy amendment

Mango levy amendment

Hard Onions levy increase

3. ‘A more competitive and sustainable fisheries sector’ comprises three components: ‘Recognise

OceanWatch as a Natural Resource Management Group’, ‘Support for Recreational and Commercial Fishing Peak Bodies’ and ‘Review of Invasive Marine Pests’.

4. This relates to National Landcare Programme funds appropriated to the Department of Agriculture. The full measure is reflected in Budget Paper No. 2 under the Environment portfolio.

Prepared on a Government Finance Statistics (fiscal) basis.

23


Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

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

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the department in achieving Government outcomes.

Outcome 1: More sustainable, productive, internationally competitive and profitable Australian agricultural, food and fibre industries through policies and initiatives that promote better resource management practices, innovation, self-reliance and improved access to international markets.

Outcome 1 StrategyContributions to achieving this outcome during 2014–15 will include: implementing the comprehensive package of support for drought

affected farmers announced by the Government in February 2014; implementing the Farm Household Allowance that will provide support

to farmers experiencing financial hardship, irrespective of the cause, to access basic support for their families;

supporting the development of the White Paper on Agricultural Competitiveness and the White Paper on the Development of Northern Australia by the Department of the Prime Minister and Cabinet;

supporting rural research, development and extension, including through research and development corporations;

improving access to agricultural and veterinary chemicals, including minor use chemicals;

supporting commercial and recreational fishing peak bodies to participate more fully in fisheries policy development;

supporting a ministerial working group to identify infrastructure projects to deliver Australia’s future water supply needs; and

24


extending Regional Forest Agreements to provide resource security and a stable investment environment to the forestry industry.

25

Outcome 1 Expense Statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted Expenses for Outcome 12013–14 2014–15

Estimated Estimatedactual expenses

expenses$'000 $'000

Programme 1.1: Agricultural AdaptationAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)Carbon Farming Initiative 200 -Clean Energy Future – Creating Opportunities on the Land – extending the benefits of the Carbon Farming Initiative 57,361 42,313Transitional Farm Family Payment 7,712 -Interim Farm Household Allow ance 2,198 3,355

Departmental expensesDepartmental appropriation1,2 6,443 6,514

Expenses not requiring appropriation in the Budget year3 280 280

Total for Programme 1.1 74,194 52,462Programme 1.2: Sustainable Management – Natural Administered expenses

Ordinary annual services (Appropriation Bill No. 1)A more competitive and sustainable f isheries sector – Recognise OceanWatch as a Natural Resource Management Group4

- 600National Landcare Programme5 17,197 10,390National Landcare Programme transfer to special account (17,197) (10,390)National Landcare Programme – extra assistance to support farmers – w ater-related infrastructure 10,128 -Natural Disaster Recovery and Rebuilding – assistance for communities af fected by the 2012–13 Queensland f loods – Reef Rescue 10,000 -

Special AccountsNatural Resources Management Account – s. 21, FMA Act 1997 [s. 11, Natural Resources Management (Financial Assistance) Act 1992 ]

`22,602 10,390



Total for Programme 1.2 67,404 20,454

Outcome 1: More sustainable, productive, internationally competitive and profitable Australian agricultural, food and fibre industries through policies and initiatives that promote better resource management practices, innovation, self-reliance and improved access to


26


Table 2.1: Budgeted Expenses for Outcome 1 (continued)2013–14 2014–15


expenses$'000 $'000

Programme 1.3: Forestry IndustryAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)Forest Industry Certif ication 500 -

Special appropriationsForestry Marketing and Research and Development Services Act 2007, s. 9(1) payments and matching payments to an industry services body and Commonw ealth 7,668 7,860



Total for Programme 1.3 13,672 13,422Programme 1.4: Fishing IndustryAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)A more competitive and sustainable f isheries sector – Support for Recreational and Commercial Fishing Peak Bodies4

- 400Fisheries Resources Research Fund 2,075 339

Special appropriationsPrimary Industries Research and Development Act 1989, s. 30A(3) & s. 30B(9) – Fisheries R&D Corporation 18,161 18,287



Total for Programme 1.4 28,444 27,321Programme 1.5: Horticulture IndustryAdministered expenses

Special appropriationsHorticulture Marketing and Research and Development Services Act 2000, s. 16(9) 82,884 86,826



Total for Programme 1.5 84,270 88,226Programme 1.6: Wool IndustryAdministered expenses

Special appropriationsWool Services Privatisation Act 2000, s. 31(4) 58,000 56,500

Departmental expensesDepartmental appropriation1,2 795 804


Total for Programme 1.6 58,811 57,320Continued on following pages

27




expenses$'000 $'000

Programme 1.7: Grains IndustryAdministered expenses

Special appropriationsPrimary Industries Research and Development Act 1989, s. 30(3) – Grains R&D Corporation – Other Grains 80,198 70,255Primary Industries Research and Development Act 1989, s. 30(3) – Grains R&D Corporation – Wheat 101,877 103,395

Departmental expensesDepartmental appropriation1,2 1,488 1,504Special accounts

Wheat Industry Special Account – s. 21, FMA Act 1997 [s. 58, Wheat Export Marketing Act 2008 ] 1,111 1,500


Total for Programme 1.7 184,718 176,698Programme 1.8: Dairy IndustryAdministered expenses

Special appropriationsDairy Produce Act 1986, s. 6(1) 52,569 52,822

Departmental expensesDepartmental appropriation1,2 843 852


Total for Programme 1.8 53,432 53,694Programme 1.9: Meat and Livestock IndustryAdministered expenses

Special appropriationsAustralian Meat and Live-stock Industry Act 1997,s. 63(2) – payments to the industry marketing body 73,344 74,517Australian Meat and Live-stock Industry Act 1997,s. 64(2) – payments to the industry research body 24,434 24,769Australian Meat and Live-stock Industry Act 1997,s. 64A(2) – payments to the livestock export marketing body 3,432 3,225Australian Meat and Live-stock Industry Act 1997,s. 64B(2) – payments to the livestock export research body 733 806Australian Meat and Live-stock Industry Act 1997,s. 64C(2) – payments to the meat processor marketing body 6,028 6,028Australian Meat and Live-stock Industry Act 1997,s. 64D(2) – payments to the meat processor research body 10,717 10,717Australian Meat and Live-stock Industry Act 1997,s. 66(1) – Commonw ealth contribution to industry research 45,480 43,871Pig Industry Act 2001, s. 10(1) 17,682 18,424

Departmental expensesDepartmental appropriation1,2 581 588Total for Programme 1.9 182,431 182,945


28




expenses$'000 $'000

Programme 1.10: Agricultural ResourcesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)A Competitive Agriculture Sector – boosting farm profits through rural research and development - 19,291A Competitive Agriculture Sector – improved access to Agricultural and Veterinary Chemicals - 350Agricultural and Veterinary Chemicals Minor Use Program 142 145Australian Animal Welfare Strategy 346 629Beef Australia 2015 – Rockhampton – contribution 2,500 -Live Animal Exports – Business Assistance – improved supply chains and Official Development Assistance (ODA) 2,706 404Rural Industries Research and Development Corporation 11,319 9,449Wine Industry Support 1,050 -

Special appropriationsAustralian Grape and Wine Authority Act 2013, s. 32 – payments to the Authority - 28,194Egg Industry Service Provision Act 2002, s. 8(1) 8,036 8,171Primary Industries Research and Development Act 1989, s. 30(3) – Cotton R&D Corporation 20,604 17,131Primary Industries Research and Development Act 1989, s. 30(3) – Grape and Wine R&D Corporation 24,084 -Primary Industries Research and Development Act 1989, s. 30(3) – Rural Industries R&D Corporation 8,733 7,250Primary Industries Research and Development Act 1989, s. 30(3) – Sugar R&D Corporation 188 -Sugar Research and Development Services Act 2013, s. 7 – payment to the sugar industry services body 25,900 27,485Wine Australia Corporation Act 1980, s. 32 5,860 -



Total for Programme 1.10 164,979 172,569Programme 1.11: Drought ProgramsAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)Drought relief package – concessional loans – administration 2,000 8,000

Special appropriationsFarm Household Support Act 1992, s. 57(3) – Exceptional Circumstances Relief Payments 50 -



Total for Programme 1.11 4,597 10,574Continued on following pages

29




expenses$'000 $'000

Programme 1.12: Rural ProgramsAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)Farm Finance – concessional loans – administration 9,750 8,150Live Animal Exports – Business Assistance 1,227 -Rural Financial Counselling Service 17,519 17,032

Special appropriationsFarm Household Support Act 2014, s. 105 – payments for Farm Household Allow ance - 27,171



Total for Programme 1.12 35,942 59,878Programme 1.13: International Market AccessAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)Agriculture Advancing Australia – International Agricultural Cooperation 615 307Food and Agriculture Organization of the United Nations 11,756 12,263Indonesia – Australia Red Meat and Cattle Partnership 300 2,200International Organisations Contributions 1,762 1,798National Food Plan 928 -



Total for Programme 1.13 41,000 42,476Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 171,291 137,415Special appropriations 676,662 693,704Special Accounts 22,602 10,390Less amounts transferred w ithin the department (17,197) (10,390)

Departmental expensesDepartmental appropriation1,2 136,339 122,218Special Accounts 1,111 1,500

Expenses not requiring appropriation in the Budget year3 3,086 3,202

Total expenses for Outcome 1 993,894 958,039

2013–146 2014–15Average Staffing Level (number) 735.0 689.8


30


1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s. 31)’.

2. Departmental appropriation allocations are notional and reflect the current structure of the department, and may change in the course of the Budget year.

3. ‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation and amortisation expenses and resources received free of charge.

4. ‘A more competitive and sustainable fisheries sector’ comprises three components: ‘Recognise OceanWatch as a Natural Resource Management Group’ (programme 1.2); ‘Support for Recreational and Commercial Fishing Peak Bodies’ (programme 1.4); and ‘Review of Invasive Marine Pests’ (programme 2.2).

5. ‘National Landcare Programme’ formerly known as ‘Caring for our Country – Landcare’.6. Casual employees were not accounted for in previous Average Staffing Level estimates presented in the

PB Statements.

31


Contributions to Outcome 1

Programme 1.1: Agricultural Adaptation

Programme ObjectiveIncrease the capacity for primary producers to adapt and adjust to change in climate while maintaining productivity.

Linked to: Department of Human Services (DHS):

- Programme 1.1: Services to the Community – Social Security and Welfare. Department of the Environment:

- Programme 1.3: Carbon Pollution Reduction – Land Sector Initiatives.- Programme 2.1: Reducing Australia’s Greenhouse Gas Emissions.- Programme 2.2: Adapting to Climate Change.

Programme Expenses2013–14 2014–15 2015–16 2016–17 2017–18

Estimated Budget Forw ard Forw ard Forw ardactual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Programme 1.1: Agricultural Annual administered expenses:

Carbon Farming Initiative 200 - - - -Clean Energy Future – Creating Opportunities on the Land – extending the benefits of the Carbon Farming 57,361 42,313 17,529 10,526 -Transitional Farm Family Payment 7,712 - - - -Interim Farm Household Allow ance 2,198 3,355 - - -

Annual departmental expenses:Departmental appropriation1,2 6,443 6,514 7,099 7,040 -

Expenses not requiring appropriation inthe Budget year3 280 280 280 280 -

Total Programme expenses 74,194 52,462 24,908 17,846 -1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue

from independent sources (s. 31)’.2. Departmental appropriation allocations are notional and reflect the current structure of the department,

and may change in the course of the Budget year.3. ‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation and amortisation

expenses and resources received free of charge.

32


Programme 1.1 Deliverables Provide analysis and advice on Australia’s agriculture and food industries to support the

evidence-based information available to the Government and external decision makers.

Administer ongoing projects to assist farmers to reduce emissions and adapt to change in climate.

Work with DHS to assist farm families experiencing financial hardship and needing household support to manage the impacts of change in climate on their businesses, set goals and take action to improve their long term financial security.

Work with DHS to implement the Interim Farm Household Allowance (FHA).

Integrated scientific and economic research Provide professionally independent research, information, analysis and advice as a

sound evidence base for improved policy for Australia’s agriculture and food industries.

Programme 1.1 Key Performance Indicators2013–14 2014–15 2015–16 2016–17 2017–18

Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3PolicyEffective policies, programmes and regulations that contribute to enhanced productivity, profitability, competitiveness and

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryAdminister ongoing projects according to deed of agreement requirements for payments and acquittals by June 2017.

100% of contracted milestones

for f inancial


for financial


for financial


for f inancial

-

Claims processed in accordance w ith the Transitional Farm Family Payment (TFFP) Services Schedules w ith DHS, w hich includes requirements that:● Claims are assessed in a timely manner (80% w ithin 42 days for simple assessments, or 91 days for complex assessments)● Payments are made to the right person (95%), at the right rate (95%), at the right time (100%).

95% Note1 - - -

Rural Financial Counselling Service (RFCS) case manage TFFP recipients to develop an action plan to improve self reliance, preparedness for changing economic and climatic conditions and long term financial

100% Note1 - - -


33


Programme 1.1 Key Performance Indicators (continued)2013–14 2014–15 2015–16 2016–17 2017–18

Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Claims processed in accordance w ith the Interim FHA Service Schedule w ith DHS, w hich includes requirements that:● Claims are assessed in a timely manner (80% w ithin 42 days for simple assessments, or 91 days for complex assessments)● Payments are made to the right person (95%), at the right rate (95%), at the right time (100%).

95% 95% Note2 - -

Integrated scientific and economic researchUnderpinning research, advice, forecast, projects, products and data services meet stakeholder expectations, and are delivered w ithin agreed timelines.

85% 85% 85% 85% 85%

1. TFFP was closed on 28 February 2014 and recipients were transferred to the Interim FHA on 1 March 2014.

2. No new claims for Interim FHA can be lodged after 30 June 2014. DHS may continue to process existing claims, but only until 30 September 2014.

34


Contributions to Outcome 1 (continued)

Programme 1.2: Sustainable Management – Natural Resources

Programme Objective Strengthen the capacity for primary producers to use sustainable Natural Resource

Management (NRM) practices to increase their on-farm profitability and competitiveness.

Strengthen the national approach to weed and pest animal management to reduce the impact of invasive species on agricultural production.

Linked to: Department of the Environment:

- Programme 1.1: Sustainable Management of Natural Resources and the Environment. Department of the Prime Minister and Cabinet:

- Programme 2.1: Indigenous Advancement – Jobs, Land and Economy Programme. The Treasury:

- Programme 1.10: National Partnership Payments to the States:o National Partnership for Water Infrastructure and Pest Management in

Drought-Affected Areas.o National Partnership on Caring for our Country – Extra Assistance to Support

Farmers – Water-related Infrastructure.o South Australian River Murray Sustainability Programme.

35




Programme 1.2: Sustainable Management – Natural ResourcesAnnual administered expenses:A more competitive and sustainable

f isheries sector – Recognise OceanWatch as a Natural Resource Management Group1 - 600 600 600 600National Landcare Programme2 17,197 10,390 5,862 909 -National Landcare Programme transfer to Special Account (17,197) (10,390) (5,862) (909) -National Landcare Programme – extra assistance to support farmers – w ater-related infrastructure 10,128 - - - -Natural Disaster Recovery and Rebuilding – assistance for communities af fected by the 2012–13 Queensland 10,000 - - - -

Special AccountsNatural Resources Management Account – s. 21, FMA Act 1997 [s. 11, Natural Resources Management (Financial Assistance) Act 1992 ] 22,602 10,390 5,862 909 -

Annual departmental expenses:Departmental appropriation3,4 24,217 9,007 8,299 6,823 7,433

Expenses not requiring appropriation inthe Budget year5 457 457 457 457 501

Total Programme expenses 67,404 20,454 15,218 8,789 8,5341. ‘A more competitive and sustainable fisheries sector’ comprises three components: ‘Recognise

OceanWatch as a Natural Resource Management Group’ (programme 1.2); ‘Support for Recreational and Commercial Fishing Peak Bodies’ (programme 1.4); and ‘Review of Invasive Marine Pests’ (programme 2.2).

2. ‘National Landcare Programme’ formerly known as ‘Caring for our Country – Landcare’.3. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue




36


Programme 1.2 Deliverables Develop policies to help farmers manage the natural resource base for increased

farmgate returns, including through engagement with state and territory governments and collaboration with industry and other stakeholders.

Facilitate the implementation of nationally agreed strategies for weeds and pest animals and other cross-sectoral issues impacting on natural resources management.

Supplement existing state and territory government emergency water infrastructure programmes to provide water for emergency animal welfare requirements and improve long-term drought resilience by farm businesses in drought affected areas.

Support state and territory governments to manage pest impacts in drought affected areas.

Communicate information and provide policy advice on sustainable land management practices, including the adoption of new management practices to increase sustainable resource management practices.

Lead the development of an options paper on water infrastructure to investigate how investment could be targeted to improve the management of water resources.

Provide leadership and support for national collaboration and engagement with primary industries on sustainable resource management, including:

- contributing to the implementation of the reforms of the Environment Protection and Biodiversity Conservation Act 1999;

- providing analysis and advice on the water reform agenda, including impacts on portfolio industries; and

- supporting national databases that help evaluate sustainable resource management investments.

Implement the National Landcare Programme.

Provide support to the Advocate for Soil Health, including coordination of reporting to the Government.

Administer ongoing projects relating to carbon farming, community networks and capacity building.


sound evidence base for improved NRM policy, including on weed and pest animal management issues.

37



Key Performance Revised Budget1 Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3PolicyEffective policies, programmes and regulations that contribute to enhanced productivity, profitability, competitiveness and

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

In collaboration w ith other stakeholders, contribute to cross-sectoral policy development e.g. for priorities identified in national strategies for w eeds or pest animals, the RD&E strategy on soil and the RD&E strategy on w ater use in agriculture.2

- Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryNational Landcare Programme implemented.

- 100% of funds for

this f inancial

year

100% of funds for

this f inancial

year

100% of funds for

this f inancial

year

100% of funds for

this f inancial

year Administer ongoing projects according to Commonw ealth Grant Guideline requirements for payments and acquittals by June 2018.


for f inancial year met.








for financial year met.

Coordination of reporting by the Soil Advocate provided to the Government in accordance w ith Soil Advocate's contracted milestones to June 2015.

- 100% based on

milestones in the Soil

Advocate's contract.

- - -

Data and informationAvailable national data used in policy development and reporting to June 2018.

- 100% of available

data used.

100% of available

data used.

100% of available

data used.

100% of available

data used.Integrated scientific and economic researchUnderpinning research, advice, forecast, projects, products and data services meet stakeholder expectations and are delivered w ithin agreed timelines.

85% 85% 85% 85% 85%

1. Key Performance Indicators (KPIs) have been revised for 2014–15 onwards to reflect the Government’s election commitments and the new National Landcare Programme.

2. Not a cumulative measure.

38



Programme 1.3: Forestry Industry

Programme ObjectiveFoster and enable productive, profitable, internationally competitive and sustainable Australian forest and forest product industries.

Linked to: Department of Foreign Affairs and Trade:

- Programme 1.4: International Climate Change Engagement.



Programme 1.3: Forestry IndustryAnnual administered expenses:

Forest Industry Certif ication 500 - - - -Special appropriations

Forestry Marketing and Research and Development Services Act 2007, s. 9(1) payments and matching payments to an industry services body and Commonw ealth administration expenses 7,668 7,860 8,018 8,178 8,341



Total Programme expenses 13,672 13,422 14,060 14,171 14,6571. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue




39


Programme 1.3 Deliverables Provide analysis and advice on forestry industries to support the evidence-based

information available to Government and external decisions makers.

Continue to support Regional Forest Agreements (RFAs), including working with the RFA states to undertake five-yearly reviews to provide for the sustainable management and conservation of Australia’s forests.

Working in consultation with the RFA states, extend and establish rolling terms for the RFAs.

Continue to support the Government’s policy agenda in relation to Tasmanian forestry.

Develop and implement regulatory and administrative approaches to implement the Government’s illegal logging policy.

Maintain productive relationships with domestic stakeholders, including supporting the work of the Forest and Wood Products Council (operating as the Forest Industry Advisory Council).

Maintain and promote engagement with international stakeholders and participate in international forums to advance Australia’s interests.

Manage departmental programmes and bilateral agreements to improve the capacity for, and implementation of, sustainable forest management activities in the Asia Pacific region, in particular improvement of timber legality and verification systems.

Support Forest and Wood Products Australia (FWPA) to meet statutory responsibilities and objectives.


sound evidence base to improve the productivity, profitability, competitiveness and sustainability of Australian forest and forest product industries.

40




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage peak industry bodies through the Forest and Wood Products Council (operating as Forest Industry Advisory Council) and state and territory departments through the Forestry and Forest Products Committee.

2 meetings. 2 meetings. 2 meetings. 2 meetings. 2 meetings.

Engage states on intent and performance of RFAs monitoring, compliance and review to ensure continued effectiveness in sustaining Australian forests and the forest products industries.

Reports tabled in

Parliament for New

South Wales.

Reports tabled in

Parliament for

Tasmania, Victoria

and Western

Reports tabled in

Parliament as agreed w ith RFA

states.

Reports tabled in


states.

Reports tabled in


states.

Engage the RFA states through bilateral negotiation processes to develop, agree and f inalise extended RFAs.

- Bilateral negotiations w ith RFA

states on RFA

extensions.

Bilateral negotiation

s w ith other RFA states on

RFA extensions.

Bilateral negotiations w ith RFA

states on RFA

extensions.

Bilateral negotiations w ith RFA

states on RFA

extensions completed.

Implement and maintain an effective policy and regulatory framew ork to administer the Illegal Logging Prohibition Act 2012.

Develop subordinat

e legislation.

Policy and regulatory regime in

operation.

Maintain policy and regulatory

regime and respond to

enquiries and

allegations.

Maintain policy and regulatory

regime and respond to

enquiries and

allegations.

Delivery of review into

the operation

of the Illegal

Logging Prohibition


41



Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Effective engagement w ith international stakeholders to promote Australia's forest policies.

- Sign new MoUs w ith

Papua New Guinea and Indonesia.

All bilateral and

multilateral relations

are

All bilateral and


are

All bilateral and


are All levy funds paid to FWPA. 100% 100% 100% 100% 100%Engage w ith FWPA to ensure compliance w ith the Statutory Funding Agreement (SFA) and relevant legislation and to discuss industry activities.


Timely f inalisation of a new SFA. Implement new SFA.

- - - -

Integrated scientific and economic researchUnderpinning research, advice, forecast, projects, products and data services meet stakeholder expectations and are delivered w ithin agreed timelines.

85% 85% 85% 85% 85%

42



Programme 1.4: Fishing Industry

Programme ObjectiveFoster and enable productive, profitable, internationally competitive and sustainable Australian fishing and aquaculture industries.



Programme 1.4: Fishing IndustryAnnual administered expenses:A more competitive and sustainable

f isheries sector – Support for Recreational and Commercial Fishing Peak Bodies1 - 400 300 200 200Fisheries Resources Research Fund 2,075 339 2,188 2,255 2,328

Special appropriationsPrimary Industries Research and Development Act 1989, s. 30A(3) & s. 30B(9) – Fisheries R&D Corporation 18,161 18,287 18,761 19,116 19,476








43


Programme 1.4 Deliverables Provide analysis and advice on fishing industries to support the evidence-based

information available to Government and external decisions makers.

Progress ecologically sustainable development policy designs for Commonwealth fisheries within legislative and broader environmental commitments.

Implement a revised fisheries policy framework and implement agreed recommendations of a fisheries management review.

Support the Australian Fisheries Management Authority (AFMA) and the Fisheries Research and Development Corporation (FRDC) to meet statutory responsibilities and objectives.

Develop strategies to improve communication and engagement with the recreational, Indigenous and commercial fishing sectors.

Maintain productive relationships with domestic and international stakeholders and participate in domestic and international forums to advance Australia’s interests.

Engage regionally and internationally on fisheries issues, including through capacity building and collaboration, to reduce the impacts of illegal foreign fishing on Australian fisheries.

Engage with state and territory governments and industry to develop a National Aquaculture Strategy.

Engage with state and territory governments and industry to streamline Australian fisheries management arrangements.

Commission the development of a survey methodology for the collection of recreational fishing catch/effort and social-economic data.

Provide leadership and support to activities that lead to the review of the Marine Bioregional Planning process being undertaken by the Department of the Environment.


sound evidence base to improve the productivity, profitability, competitiveness and sustainability of Australia’s fisheries industries.

Provide information on the status of Commonwealth fish stocks through the Fisheries Status report, and nationally through the status of key Australian fish stocks reports.

44



Key Performance Revised Budget1 Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3PolicyEffective policies, programmes and regulations that contribute to enhanced productivity, profitability, competitiveness and

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryDevelop a National Aquaculture Strategy.

- Consult w ith all

state jurisdiction

Release strategy.

- -

Prepare briefing papers prior to meetings for regional negotiations on fisheries management, trade and marine conservation to advance Australia’s interests.

- Attend relevant

meetings.

Attend relevant

meetings.

Attend relevant

meetings.

Attend relevant

meetings.

Develop arrangements for ef ficiencies in fisheries management.

- Provide advice to Govern-

ment.

Implement arrange-

ments.

- -

Participate in the review of marine protected areas.

- Attend 5 meetings.

- - -

Develop a methodology to undertake a National Recreational Fishing Survey and report w ithin 18 months.

- - Develop methodolog

y and report to

Parliament-ary

- -

Establish national representative bodies for commercial fishing and recreational f ishing.

- Provide options to

Parliament-ary

Secretary.

Implement agreed

options.

- -

Establish a National Recreational Fishing Council.

- Provide options to

Parliament-ary

Secretary.

Implement agreed

options.

- -


45



Key Performance Revised Budget1 Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Promote Indigenous engagement in commercial and/or customary f isheries and aquaculture.

- Consult w ith FRDC Indigenous Reference Group on

RD&E priorities

and develop a

project

- - -

All levy funds paid to FRDC. - 100% 100% 100% 100%Progress the domestic processes in relation to the Niue Treaty Subsidiary Agreement and ongoing cooperation w ith Pacif ic Island countries to combat illegal foreign fishing.

- Arrange for

Government consider

-ation of signing the

- - -

Assist commercial and recreational f ishing organisations adapt to national maritime safety standards.

- Provide support to

commercial and

recreational f ishing

organisat-ions.

- - -


85% 85% 85% 85% 85%

1. KPIs have been revised for 2014–15 onwards.

46



Programme 1.5: Horticulture Industry

Programme ObjectiveFoster and enable productive, profitable, internationally competitive and sustainable Australian horticulture industries.



Programme 1.5: Horticulture IndustrySpecial appropriations

Horticulture Marketing and Research and Development Services Act 2000, s. 82,884 86,826 86,826 86,826 86,826







Programme 1.5 Deliverables Provide analysis and advice on horticulture industries to support the evidence-based

information available to the Government and external decisions makers.

Implement new and change existing regulation, industry levies and fees to support Australian horticulture industries.

Support Horticulture Australia Limited (HAL) to meet statutory and contractual responsibilities and objectives including the review of governance arrangements for HAL.

Maintain productive relationships with domestic and international stakeholders and participate in domestic and international forums to advance Australia’s horticulture interests.

Provide information and advice on standard setting and other access issues affecting international trade for Australian horticulture industries.

Integrated scientific and economic research Provide professionally independent research, analysis and advice as a sound evidence

base to improve the productivity, profitability, competitiveness and sustainability of Australia’s horticulture industries.

47




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage w ith domestic and international stakeholders on horticulture issues.


All levy funds paid to HAL. 100% 100% 100% 100% 100%Timely and effective engagement w ith HAL to ensure compliance w ith the Statutory Funding Agreement and relevant legislation and to discuss industry activities.



85% 85% 85% 85% 85%

48



Programme 1.6: Wool Industry

Programme ObjectiveFoster and enable a productive, profitable, internationally competitive and sustainable Australian wool industry.



Programme 1.6: Wool IndustrySpecial appropriations

Wool Services Privatisation Act 2000, s. 31(4) 58,000 56,500 56,500 56,500 56,500

Annual departmental expenses:Departmental appropriation1,2 795 804 874 867 913






Programme 1.6 Deliverables Provide analysis and advice on the wool industry to support the evidence-based

information available to the Government and external decision makers.

Implement new and change existing industry regulation, levies and fees to support the Australian wool industry.

Support Australian Wool Innovation Limited (AWI) to meet statutory responsibilities and objectives.

Maintain productive relationships with domestic and international stakeholders and participate in domestic and international forums to advance Australia’s wool interests.

Provide information and advice on standard setting and other access issues affecting international trade for the Australian wool industry.


base to improve the productivity, profitability, competitiveness and sustainability of Australia’s wool industry.

49




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage w ith domestic and international stakeholders on w ool issues.


Requests under w oolpack regulations are actioned in a timely and accurate manner.

100% 100% 100% 100% 100%

All levy funds paid to AWI. 100% 100% 100% 100% 100%Timely and effective engagement w ith AWI to ensure compliance w ith the Statutory Funding Agreement and relevant legislation and to discuss industry activities.



85% 85% 85% 85% 85%

50



Programme 1.7: Grains Industry

Programme ObjectiveFoster and enable a productive, profitable, internationally competitive and sustainable Australian grains industry.



Programme 1.7: Grains IndustrySpecial appropriations

Primary Industries Research and Development Act 1989, s. 30(3) – Grains R&D Corporation – Other Grains 80,198 70,255 70,989 73,024 76,870Primary Industries Research and Development Act 1989, s. 30(3) – Grains R&D Corporation – 101,877 103,395 105,778 111,802 117,754


Special accountsWheat Industry Special Account – s. 21, FMA Act 1997 [s. 58, Wheat Export Marketing Act 1,111 1,500 1,088 - -






51


Programme 1.7 Deliverables Provide analysis and advice on the grains industry to support the evidence-based


Implement new and change existing industry regulation, levies and fees to support the Australian grains industry.

Support the Grains Research and Development Corporation (GRDC) to meet statutory responsibilities and objectives.

Maintain productive relationships with domestic and international stakeholders and participate in domestic and international forums to advance Australia’s grains interests.

Provide information and advice on standard setting and other access issues affecting international trade for the Australian grains industry.

Work with industry to identify and implement wheat market information arrangements.


base to improve the productivity, profitability, competitiveness and sustainability of Australia’s grains industry.

52




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage w ith domestic and international stakeholders on grain issues.


Actions relating to w heat marketing implemented in accord w ith the timetable set out in the

100% - - - -

Engage w ith industry w orking groups to develop new arrangements for w heat

2 meetings. - - - -

Develop port access code of conduct before 1 October 2014.

- 100% - - -

All levy funds paid to GRDC. 100% 100% 100% 100% 100%Timely and effective engagement w ith GRDC to ensure compliance w ith relevant legislation and to discuss industry activities, w ith meetings no more than eight



85% 85% 85% 85% 85%

53



Programme 1.8: Dairy Industry

Programme ObjectiveFoster and enable productive, profitable, internationally competitive and sustainable Australian dairy industry.



Programme 1.8: Dairy IndustrySpecial appropriations

Dairy Produce Act 1986, s. 6(1) 52,569 52,822 53,993 54,315 55,628Annual departmental expenses:

Departmental appropriation1,2 843 852 927 920 968Expenses not requiring appropriation in

the Budget year3 20 20 20 20 22Total Programme expenses 53,432 53,694 54,940 55,255 56,618




Programme 1.8 Deliverables Provide analysis and advice on the dairy industry to support the evidence-based


Implement new and change existing industry regulations, levies and fees to support the Australian dairy industry.

Support Dairy Australia Limited (DAL) to help meet statutory responsibilities and objectives.

Maintain productive relationships with domestic and international stakeholders and participate in domestic and international forums to advance Australia’s dairy interests.

Provide information and advice on standard setting and other access issues affecting international trade for the Australian dairy industry.

Manage quota arrangements for dairy exports under international obligations.


base to improve the productivity, profitability, competitiveness and sustainability of Australia’s dairy industry.

54




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage w ith domestic and international stakeholders on dairy issues.


Allocation of quota to dairy industry in accordance w ith

100% 100% 100% 100% 100%

All levy funds paid to DAL. 100% 100% 100% 100% 100%Timely and effective engagement w ith DAL to ensure compliance w ith the Statutory Funding Agreement (SFA) and relevant legislation and to discuss industry



85% 85% 85% 85% 85%

55



Programme 1.9: Meat and Livestock Industry

Programme ObjectiveFoster and enable productive, profitable, internationally competitive and sustainable Australian meat and livestock industries.



Programme 1.9: Meat and Livestock IndustrySpecial appropriations

Australian Meat and Live-stock Industry Act 1997, s. 63(2) – payments to the industry marketing body 73,344 74,517 75,107 75,818 76,458Australian Meat and Live-stock Industry Act 1997, s. 64(2) – payments to the industry research body 24,434 24,769 24,927 25,132 25,306Australian Meat and Live-stock Industry Act 1997, s. 64A(2) – payments to the livestock export marketing body 3,432 3,225 3,386 3,556 3,734Australian Meat and Live-stock Industry Act 1997, s. 64B(2) – payments to the livestock export research body 733 806 847 889 933Australian Meat and Live-stock Industry Act 1997, s. 64C(2) – payments to the meat processor marketing body 6,028 6,028 6,028 6,028 6,028Australian Meat and Live-stock Industry Act 1997, s. 64D(2) – payments to the meat processor research body 10,717 10,717 10,717 10,717 10,717Australian Meat and Live-stock Industry Act 1997, s. 66(1) – Commonw ealth contribution to industry research body 45,480 43,871 43,271 42,921 43,131Pig Industry Act 2001, s. 10(1) 17,682 18,424 18,565 19,834 19,975

Annual departmental expenses:Departmental appropriation1,2 581 588 638 633 667



and may change in the course of the Budget year.

56


Programme 1.9 Deliverables Provide analysis and advice on the meat and livestock industries to support the

evidence-based information available to the Government and external decision makers.

Support Meat and Livestock Australia (MLA), Australian Meat Processor Corporation (AMPC), Australian Livestock Export Corporation (Livecorp), Australian Egg Corporation Limited (AECL) and Australian Pork Limited (APL) to meet statutory responsibilities and objectives.

Maintain productive relationships with domestic and international stakeholders and participate in domestic and international forums to advance Australia’s meat and livestock interests.

Provide information and advice on standard setting and other access issues affecting international trade for the Australian meat and livestock industries.

Manage quota arrangements for meat and livestock exports under international obligations.


base to improve the productivity, profitability, competitiveness and sustainability of Australia’s meat and livestock industries.

57




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage w ith domestic and international stakeholders on meat and livestock issues.


Allocation of quota to meat and livestock industry in accordance w ith legislation.

100% 100% 100% 100% 100%

All levy funds paid to MLA, AMPC, Livecorp, AECL and APL.

100% 100% 100% 100% 100%

Timely and effective engagement w ith MLA, AMPC, Livecorp, AECL and APL to ensure compliance w ith the Statutory Funding Agreement and relevant legislation and to discuss industry activities.

2 meetings each.

2 meetings each.

2 meetings each.

2 meetings each.

2 meetings each.


85% 85% 85% 85% 85%

58



Programme 1.10: Agricultural Resources

Programme Objective Foster and enable productive, profitable, internationally competitive and sustainable

Australian primary industries, including food and wine industries.

Support and streamline the National Registration Scheme for agricultural and veterinary chemicals.

Support rural research, development and extension, including through research and development corporations.



Programme 1.10: Agricultural Annual administered expenses:

A Competitive Agriculture Sector – boosting farm profits through rural research and development - 19,291 29,295 29,299 19,194A Competitive Agriculture Sector – improved access to Agricultural and Veterinary Chemicals - 350 1,718 2,532 1,930Agricultural and Veterinary Chemicals Minor Use Program 142 145 148 151 154Australian Animal Welfare Strategy 346 629 - - -Beef Australia 2015 – Rockhampton – contribution 2,500 - - - -Live Animal Exports – Business Assistance – improved supply chains and Off icial Development Assistance 2,706 404 - - -Rural Industries Research and Development Corporation 11,319 9,449 8,654 8,876 9,114Wine Industry Support 1,050 - - - -

Programme expenses (continued) 18,063 30,268 39,815 40,858 30,392Continued on following page

59


Programme Expenses (continued)2013–14 2014–15 2015–16 2016–17 2017–18


Programme 1.10: Agricultural Special appropriations

Australian Grape and Wine Authority Act 2013, s. 32 – payments to the - 28,194 28,193 28,191 28,190Egg Industry Service Provision Act 2002, 8,036 8,171 8,398 8,585 8,776Primary Industries Research and Development Act 1989, s. 30(3) – Cotton R&D Corporation 20,604 17,131 13,078 12,852 15,275Primary Industries Research and Development Act 1989, s. 30(3) – Grape and Wine R&D 24,084 - - - -Primary Industries Research and Development Act 1989, s. 30(3) – Rural Industries R&D 8,733 7,250 6,865 6,868 6,868Primary Industries Research and Development Act 1989, s. 30(3) – Sugar R&D Corporation 188 - - - -Sugar Research and Development Services Act 2013, s. 7 – payment to the sugar industry services body 25,900 27,485 27,483 27,701 27,698Wine Australia Corporation Act 1980, s. 5,860 - - - -


Expenses not requiring appropriation inthe Budget year3 866 982 982 982 1,075





60


Programme 1.10 Deliverables Provide analysis and advice on primary industries, including food chain issues and

agricultural productivity, to support the evidence-based information available to the Government and external decision makers.

Implement new and change existing industry levies and fees to support primary industries.

Implement the boosting farm profits through rural research and development programme.

Support the Cotton Research and Development Corporation (CRDC), Rural Industries Research and Development Corporation (RIRDC), Sugar Research Australia (SRA) and the Australian Grape and Wine Authority (AGWA) to meet statutory responsibilities and objectives.

Develop statutory funding agreements for the statutory rural research and development corporations.

Implement the programme to improve access to agricultural and veterinary (agvet) chemicals.

Support the Australian Pesticides and Veterinary Medicines Authority (APVMA) implementation of legislative reforms and meet reporting responsibilities.

Implement Council of Australian Governments (COAG) reforms to the national agvet chemicals and medicines regulatory system.

Maintain productive relationships with domestic and international stakeholders and participate in domestic and international forums to advance Australia’s agricultural and processed food interests.

Support the development and coordinate implementation of the outcomes of the White Papers on Agricultural Competitiveness and the Development of Northern Australia.

Provide information and advice on standard setting and other access issues affecting international trade for the Australian primary industries, including food standards and chemical use conventions.


sound evidence base to improve the productivity, profitability, competitiveness and sustainability of Australia’s agricultural industries.

61




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage w ith domestic and international stakeholders on industry issues.


Effective and timely contribution to amendments to Australia and New Zealand Food Standards Code.

By due date, in

consultation w ith

industry.

By due date, in

consultation w ith

industry.

By due date, in

consultation w ith

industry.

By due date, in

consultation w ith

industry.

By due date, in

consultation w ith

industry.Timely delivery of allocated funding under the Rural Research and Development for Profit

- 100% 100% 100% 100%

Timely development and implementation of the strategy and the associated actions for research and development.

Implement actions.

Implement actions.

Implement actions.

Implement actions.

Implement actions.

Effective engagement w ith states and territories to deliver productivity w ork plan.

Deliver productivity w ork plan.





Implement the Australian Animal Welfare Strategy (AAWS).

100% of funds

committed.

Projects f inalised.1

- - -

Provide assistance to Official Development Assistance (ODA) eligible countries that import livestock from Australia by providing training and improving their capacity to implement World Organisation for Animal Health (OIE) animal w elfare standards.

3–5 projects.

Projects f inalised.2

- - -

Work w ith jurisdictions on the development of priority national animal w elfare standards.

100% Projects f inalised.1

- - -


62



Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Timely delivery of allocated funding under the minor use agvet chemical programme.

- 100% 100% 100% 100%

Work w ith APVMA to implement reforms to its systems and processes in a timely manner in accord w ith legislation.

Implement APVMA reforms.





Progress reforms to the national agvet chemicals system in partnership w ith the states and territories.

Implement reforms.

Implement reforms.

Implement reforms.

Implement reforms.

Implement reforms.

All levy funds paid to recipient 100% 100% 100% 100% 100%Timely and effective engagement w ith portfolio agencies to ensure compliance w ith Statutory Funding Agreements (as relevant), legislation and to discuss industry

2 meetings each.

2 meetings each.

2 meetings each.

2 meetings each.

2 meetings each.


85% 85% 85% 85% 85%

1. The AAWS will terminate on 30 June 2015.2. This programme will terminate on 30 June 2014.

63



Programme 1.11: Drought Programmes

Programme ObjectiveIncrease the resilience and capacity of farmers, farming families and communities to better prepare for and manage the impacts of drought, climate variability and reduced water availability.

Linked to: Department of Human Services (DHS):

- Programme 1.1: Services to the Community – Social Security and Welfare. The Treasury:

- Programme 1.10: National Partnership Payments to the States:o National Partnership on the pilot of drought reform measures in Western

Australia.



Programme 1.11: Drought ProgramsAnnual administered expenses:

Drought relief package – concessional loans – administration 2,000 8,000 - - -

Special appropriationsFarm Household Support Act 1992, s. 57(3) – Exceptional Circumstances Relief Payments 50 - - - -







64


Programme 1.11 Deliverables Provide analysis and advice on helping farmers prepare for and manage risks including

drought through engagement and consultation with state and territory governments and industry stakeholders.

Provision of concessional loans to farmers affected by drought through agreements with state and territory governments.

Work with each state and territory to implement concessional loans to assist farmers to recover from and prepare for severe drought and return to viability in the long term.

Collect quantitative and qualitative information on the achievement of services obtained through client surveys, performance audits and programme reviews.


sound evidence base for improved drought policy for Australia’s agricultural industries.

65




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEligible farmers receive suff icient financial resources to meet immediate needs w ithin timeframe specified by the Bilateral Management Arrangement.1,2,3

100% - - - -

Exceptional Circumstances (EC) Relief Payments claims to be processed w ithin 42 days in accordance w ith the Bilateral Management Arrangement w ith DHS.1,2,3

80% - - - -

Effective understanding of stakeholder view s on policies and programmes to help producers prepare for and manage the impact of drought.

Consult stakeholders.

- - - -

Work w ith each state and territory to implement drought concessional loans.

Eligible drought

af fected farm

businesses access loan

funds for debt

restructuring, operating expenses

and drought

Eligible drought

af fected farm

businesses access loan

funds for debt

restructuring, operating expenses

and drought

- - -

Integrated scientific and economic researchUnderpinning research, advice, forecast, projects, products and data services meet stakeholder expectations and are delivered w ithin

85% 85% 85% 85% 85%

1. While no EC payments have been made in 2013–14, the performance indicator remains valid as payments could be made during 2013–14 if an area is declared.

2. There are no estimates from 2013–14 onwards as the EC arrangements will terminate on 30 June 2014.3. Bilateral Management Arrangement – previously the Business Partnership Agreement.

66



Programme 1.12: Rural Programmes

Programme ObjectiveSupport eligible primary producers and small rural businesses with targeted assistance to manage adjustment pressures and remain viable in the long term.

Linked to:Expense item Farm Household Support Act 2014, s. 105 – payments for Farm Household Allowance is linked to: Department of Human Services (DHS):

– Programme 1.1: Services to the Community – Social Security and Welfare.



Programme 1.12: Rural ProgramsAnnual administered expenses:

Farm Finance – concessional loans – administration 9,750 8,150 - - -Live Animal Exports – Business 1,227 - - - -Rural Financial Counselling Service 17,519 17,032 14,336 14,608 14,901

Special appropriationsFarm Household Support Act 2014, s. 105 – payments for Farm Household - 27,171 35,036 47,088 34,319







67


Programme 1.12 Deliverables Provide analysis and advice on Australia’s agricultural industries to support the

evidence-based information available to the Government and external decisions makers for rural policy.

Work with DHS to deliver the FHA from 1 July 2014.

Support Rural Financial Counselling Service organisations to deliver services to eligible clients to manage change and adjustment in accordance with appropriate governance arrangements.

Implement measures to assist farm families to build their financial resilience and better manage debt including Farm Finance measures.

Support Australian pastoralists and related businesses to manage the impacts of the temporary suspension of the live cattle export trade to Indonesia.


sound evidence base for improved rural policy for Australia’s agricultural industries.



Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryWork w ith the Rural Financial Counselling Service (RFCS) providers to acquit the funds in accordance w ith the relevant agreed governance

100% of funds

acquitted.

100% of funds

acquitted.

Note1 - -

Provide effective support across rural Australia through the RFCS programme.

Support 14 service

providers.

Support 14 service

providers.

Note1 - -

Work w ith RFCS providers to provide the services specif ied in the agreed governance

100% of services provided.

100% of services provided.

Note1 - -


68



Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Work w ith each of the states and the Northern Territory on the implementation and delivery of Farm Finance concessional loans.

Eligible farm

businesses access

loan funds for debt

restructuring or

productivity enhance-

ment

Eligible farm

businesses access

loan funds for debt

restructuring or

productivity enhance-

ment Current FHA recipients have engaged in targeted education or training w ithin 12 months of commencing payment.

- 60% of recipients.

60% of recipients.

60% of recipients.

60% of recipients.

Current FHA recipients w ho have identif ied that they w ish to remain on the farm, develop a business plan w ithin 12 months of commencing payment.


70% of recipients.

70% of recipients.

70% of recipients.

Current FHA recipients w ho have an impediment(s) to participating in targeted education or business planning have engaged in an activity or activities to address that impediment(s) w ithin 12 months of commencing payment.


80% of recipients.

80% of recipients.

80% of recipients.

752 eligible applicants have access to cash f low to assist w ith the impacts of the temporary suspension of the live cattle

752 Note3 - - -

Work w ith DHS to ensure systems are in place to enable the FHA to be implemented from 1 July 2014.

Systems in place by

1 July 2014.

- - - -


85% 85% 85% 85% 85%

1. While funding for the RFCS is ongoing, no KPIs have been developed beyond current contracts.2. These numbers are the number of recipients. Applications closed on 10 February 2012. Payments will

be made to recipients for up to two years. Numbers reported are not aggregated across financial years.3. No KPIs have been developed beyond current appropriation.

69



Programme 1.13: International Market Access

Programme ObjectiveMaintain and improve international market access opportunities for Australia’s agriculture industries.



Programme 1.13: International Market Annual administered expenses:

Agriculture Advancing Australia – International Agricultural Cooperation 615 307 318 335 354Food and Agriculture Organization of the United Nations (FAO) 11,756 12,263 12,580 12,580 12,580Indonesia – Australia Red Meat and Cattle Partnership 300 2,200 2,200 700 699International Organisations Contributions 1,762 1,798 1,831 1,865 1,902National Food Plan 928 - - - -







70


Programme 1.13 Deliverables Provide analysis and advice on Australia’s agricultural industries to support the

evidence-based information available to the Government and external decisions makers for improved international market access opportunities.

Maximise market access opportunities and counter market access threats for Australian agriculture including through targeted international negotiations and/or liaison with industry.

Build and maintain relationships with trading partners to facilitate the resolution of trade issues including through ministerial visits and exchanges of delegations.

Represent Australia’s agriculture interests in international forums, such as the G20.

Provide targeted agricultural cooperation and technical assistance to support market access objectives through the International Agricultural Cooperation Programme and other capacity building avenues.

Ensure portfolio obligations are met and interests are reflected in international agreements, organisations and standards relating to animal, plant, and food products and environmental health and sustainability, including the World Trade Organization, the World Organisation for Animal Health, the Codex Alimentarius Commission, the International Plant Protection Convention and the Organisation for Economic Cooperation and Development.

Manage the Government’s engagement with the Food and Agriculture Organization of the United Nations to best meet the needs of Australia’s agricultural industries.

Develop, maintain and improve strong and productive relationships with domestic and international stakeholders including industries, partner agencies and overseas counterparts to advance Australia’s agriculture, food and fibre interests.

Integrated scientific and economic research Provide professionally independent research, information, analysis and advice for

improved international market access opportunities for Australia’s agricultural industries.

71




Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Accurate and timely

advice provided.

Programme deliveryEngage w ith trading partners to support access to overseas markets for portfolio industries.

100% Note1 - - -

Host and/or participate in agricultural w orking groups.

5 w orking groups.

5 w orking groups.

5 w orking groups.

5 w orking groups.

5 w orking groups.

Support incoming and outgoing delegations.

30 delegations

30 delegations

30 delegations

30 delegations

30 delegations

Support ministerial and other high level visits.

Up to 5. Up to 5. Up to 5. Up to 5. Up to 5.

Support a netw ork of Department of Agriculture off icers overseas located in key regions to maintain and improve Australia's market access opportunities and

13 posts. 18 key

overseas markets.

18 key overseas markets.




Meet all portfolio statutory reporting obligations under international agreements.

100% 100% 100% 100% 100%

Distribute membership funds to international organisations in accordance w ith Australia's international obligations and statutory requirements.

100% of obligations

met.

Member-ships paid.

Member-ships paid.

Member-ships paid.

Member-ships paid.

Support capacity building and cooperation projects w ith trading partners and international institutions.

5–10 projects.

5–10 projects.

5–10 projects.

5–10 projects.

5–10 projects.


85% 85% 85% 85% 85%

1. From 2014–15, this KPI has been included in the KPIs below.

72


Outcome 2: Safeguard Australia’s animal and plant health status to maintain overseas markets and protect the economy and environment from the impact of exotic pests and diseases, through risk assessment, inspection and certification and the implementation of emergency response arrangements for Australian agricultural, food and fibre industries.

Outcome 2 StrategyContributions to achieving this outcome during 2014–15 will include:

providing efficient and effective biosecurity and export certification services within a risk based approach;

strengthening biosecurity and quarantine arrangements, including emergency response arrangements for incursions of exotic pests and disease;

supporting the eradication and management of nationally significant agricultural and environmental plant and animal pests and diseases;

assisting small exporters with the costs of gaining export certification;

initiating work to better understand and manage marine pests;

progressing biosecurity reforms to more effectively and efficiently manage biosecurity risk in the context of continued growth in trade volumes;

progressing the transition of post entry quarantine operations to a single facility, which will occur from late 2015; and

conducting a review of the structure of fees and charges under cost recovery arrangements to ensure that they are appropriate as part of a sustainable funding model for biosecurity and export certification services.

73






expenses

$'000 $'000Programme 2.1: Biosecurity and Export ServicesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)A Competitive Agriculture Sector – support for small - -Centre of Excellence for Biosecurity Risk Analysis and 1,784 1,816

Expenses not requiring appropriation in the Budget year1 9,730 9,682Departmental expenses

Departmental appropriation2,3 148,860 141,453Special Accounts

Australian Quarantine and Inspection Service Special Account– s. 20, FMA Act 19974

378,915 359,856National Residue Survey Account – s. 21, FMA Act 1997[s. 6, National Residue Survey Administration Act 1992 ] 13,596 12,913


Total for Programme 2.1 561,932 534,230Programme 2.2: Plant and Animal HealthAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)A Competitive Agriculture Sector – stronger biosecurity and quarantine arrangements - 2,554A more competitive and sustainable f isheries sector – Review of Invasive Marine Pests6 - 340Animal Biosecurity & Response Reform 980 982Commonw ealth membership of Animal Health Australia and Plant Health Australia 2,093 2,120International Organisations Contribution – World Organisation for Animal Health 241 246Other Exotic Disease Preparedness Programme 601 614Payment to CSIRO – Contribution to the operating costs of the Australian Animal Health Laboratory 7,665 7,812Plant Biosecurity & Response Reform 1,380 1,384

Programme 2.2 carried forward 12,960 16,052

Outcome 2: Safeguard Australia's animal and plant health status to maintain overseas markets and protect the economy and environment from the impact of exotic pests and diseases, through risk assessment, inspection and certification, and the implementation of emergency response arrangements for Australian


74




expenses$'000 $'000

Special appropriationsAustralian Animal Health Council (Live–stock Industries) Funding Act 1996, s. 5 6,665 6,768Plant Health Australia (Plant Industries) Funding Act 2002, 1,770 1,655Plant Health Australia (Plant Industries) Funding Act 2002, 597 604



Total for Programme 2.2 59,769 60,956Outcome 2 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 14,744 17,868Special appropriations 9,032 9,027Expenses not requiring appropriation in the Budget year1 9,730 9,682

Departmental expensesDepartmental appropriation2,3 185,583 176,276Special Accounts 392,511 372,769


Total expenses for Outcome 2 621,701 595,186

2013–147 2014–15Average Staffing Level (number) 3,662.0 3,475.0

1. Administered ‘Expenses not requiring appropriation in the Budget year’ relates to the National Residue Survey Special Account.

2. Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s. 31)".


4. The Australian Quarantine Inspection Service ceased to be a business operation in the department from 29 February 2012, but the title of the Special Account has not yet been changed.


6. ‘A more competitive and sustainable fisheries sector’ comprises three components: ‘Recognise OceanWatch as a Natural Resource Management Group’ (programme 1.2); ‘Support for Recreational and Commercial Fishing Peak Bodies’ (programme 1.4); and ‘Review of Invasive Marine Pests’ (programme 2.2).

7. Casual employees were not accounted for in previous Average Staffing Level estimates presented in the PB Statements.

75



Programme 2.1: Biosecurity and Export Services

Programme ObjectiveTo support access to overseas markets and protect the economy and the environment from the impacts of unwanted exotic pests and diseases through the safe movement to and from Australia of animals, plants and their products, including genetic material, people and cargo. The focus for 2014–15 is to:

strengthen Australia’s biosecurity and export certification systems across the continuum;

deliver efficient, effective and sustainably funded biosecurity and export certification services; and

improve partnerships to deliver better biosecurity outcomes.

Linked to: Australian Customs and Border Protection Service:

- Programme 1.1: Border Enforcement.- Programme 1.2: Border Management.

Department of Finance:

- Programme 2.2: Property and Construction.

76




Annual administered expenses:A Competitive Agriculture Sector – support for small exporters - - 513 2,564 2,050Centre of Excellence for Biosecurity Risk Analysis and Research 1,784 1,816 1,850 1,885 1,923Expenses not requiring appropriation in the Budget year1 9,730 9,682 9,682 9,812 9,819


Special AccountsAustralian Quarantine and Inspection Service Special Account – s. 20, FMA Act 19974 378,915 359,856 351,851 353,149 356,352National Residue Survey Account – s. 21, FMA Act 1997 [s. 6, National Residue Survey Administration Act 13,596 12,913 12,625 12,672 12,787

Expenses not requiring appropriation inthe Budget year5 9,047 8,510 8,510 8,510 8,510

Total Programme expenses 561,932 534,230 523,149 527,251 531,433

Programme 2.1: Biosecurity and Export

1. Administered ‘Expenses not requiring appropriation in the Budget year’ relates to the National Residue Survey Special Account.



4. The Australian Quarantine Inspection Service ceased to be a business operation in the department from 29 February 2012, but the title of the Special Account has not yet been changed.


77


Programme 2.1 Deliverables Progress reforms to Australia's biosecurity system to continue to deliver a modern and

efficient system that is responsive and targeted, in a changing global trading environment.

Develop and implement changes to biosecurity cost recovery arrangements, including reducing the number and complexity of fees paid and structuring of fees to better align with risk-based delivery of biosecurity services.

Integrate biosecurity activities, scientific capabilities and analysis across the biosecurity continuum.

Continue to develop and implement risk-based intervention strategies for vessels, sea and air cargo, international passengers and mail to optimise deployment of resources to provide the greatest benefit to Australia’s biosecurity status.

Evaluate and encourage industry compliance with regulatory arrangements through education, audit and performance-based rewards and sanctions.

Perform robust science-based import risk analyses (IRAs) and biosecurity risk assessments.

Provide scientific and technical advice, perform inspections and audits and issue export certification to support access to overseas markets for Australian exporters.

Provide effective national biosecurity services for the clearance of imported goods, vessels and people.

Implement the Australian Government’s requirements for the future of Australia’s animal and plant post entry quarantine facilities, including the procurement of a new, consolidated post entry quarantine facility for operation from 2015.

Improve partnerships across the biosecurity continuum, particularly with all governments in Australia by implementing priorities in the Intergovernmental Agreement on Biosecurity.

Implement continuous improvement to export certification arrangements, while maintaining market access for our dairy, fish, grain, horticulture, live animal and meat export industries.

Integrated scientific and economic research Provide professionally independent research, information, analysis and advice to

support efficient and effective biosecurity outcomes.

78



Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Implementation of risk-based biosecurity intervention for sea cargo, air cargo vessels, international passengers and mail.

Monitor and review change

projects.


projects.


projects.


projects.


projects.Changes to biosecurity cost recovery arrangements developed and implemented.

Revised Cost

Recovery Impact

Statements developed.

Implementa-tion of

revised Cost

Recovery Impact

Statements

Number of import cost

recovery fees

reduced by at least

25%.

Number of reduced

fees maintained.

Number of reduced

fees maintained.

Engage w ith industry to design and implement reforms.

2 industry meetings.

Design and implement reforms.









Transition to revised arrangements for a single post entry quarantine station.

Plan transition to

new facility.

Commence early

commission-ing of new

facility. Commence

transition implement-

ation.

Fully implement

f irst phase transition.

Fully commission f irst phase.

Commence second phase

construction.

Fully implement

second phase

transition.

Engage w ith state and territory governments on biosecurity


Markets lost as a consequence of failed departmental certif ication services.

Nil Nil Nil Nil Nil

Export consignments rejected because of failure to meet export certif ication requirements.

Less than 1%.

Less than 1%.

Less than 1%.

Less than 1%.

Less than 1%.

Proportion of IRAs conducted in accordance w ith regulations.

100% 100% 100% 100% 100%

Proportion of expanded IRAs supported by the Eminent Scientists Group.

100% 100% 100% 100% 100%

Develop closer partnerships w ith other agencies to deliver better biosecurity outcomes.

Monitor partnering.

Review partnering.

Review partnering.

Review partnering.

Review partnering.


85% 85% 85% 85% 85%


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Programme 2.2: Plant and Animal Health

Programme ObjectiveTo support access to overseas markets and protect the economy and the environment from the impacts of unwanted exotic pests and diseases through the safe movement to and from Australia of animals, plants and their products, including genetic material, people and cargo. The focus for 2014–15 is to:

improve the preparedness of governments, industry and the community to quickly and effectively respond to exotic pest and disease incursions; and

improve Australia’s biosecurity interests nationally and internationally to maintain Australia’s current pest and disease free status.

Linked to: The Treasury

- Programme 1.10: National Partnership Payments to the States:o Animal and plant pest and disease eradication.

80




Programme 2.2: Plant and Animal Annual administered expenses:

A Competitive Agriculture Sector – stronger biosecurity and quarantine - 2,554 1,853 1,888 1,926A more competitive and sustainable f isheries sector – Review of Invasive Marine Pests1 - 340 969 1,139 839Animal Biosecurity & Response Reform 980 982 983 983 983Commonw ealth membership of Animal Health Australia and Plant Health 2,093 2,120 2,144 2,171 2,215International Organisations Contribution – World Organisation for Animal Health 241 246 250 255 260Other Exotic Disease Preparedness Programme 601 614 625 637 650Payment to CSIRO – Contribution to the operating costs of the Australian Animal Health Laboratory 7,665 7,812 7,952 8,103 8,264Plant Biosecurity & Response Reform 1,380 1,384 1,385 1,385 1,385

Special appropriationsAustralian Animal Health Council (Live–stock Industries) Funding Act 1996, s. 5 6,665 6,768 6,824 6,889 6,948Plant Health Australia (Plant Industries) Funding Act 2002, s. 6 1,770 1,655 1,619 1,604 1,566Plant Health Australia (Plant Industries) Funding Act 2002, s. 10B 597 604 586 579 560


Expenses not requiring appropriation inthe Budget year4 1,054 1,054 1,054 1,054 1,054






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Programme 2.2 Deliverables Progress reforms to Australia’s biosecurity system to better integrate biosecurity

activities, scientific capabilities and analysis across the biosecurity continuum.

Strengthened partnerships between all governments in Australia, other countries, industry and the broader community, in line with Government priorities and the Intergovernmental Agreement on Biosecurity.

Provide scientific and policy improvements to strengthen Australia’s exotic pest and disease prevention, preparedness and response capabilities.

Provide effective national coordination of responses to emergency and re-emerging exotic diseases, including technical, policy, training and funding support for national exotic pest and animal disease emergency management.

Develop and implement a rapid response capability under the stronger biosecurity and quarantine arrangements measure to contain significant exotic pest and disease outbreaks and maintain market access.

Strengthen surveillance efforts across the biosecurity continuum by working closely with states and territories and surveillance networks to detect pests and diseases of concern.

Improve national animal and plant surveillance arrangements, tools and diagnostic capability to underpin Australia’s quarantine policies in support of market access and trade.

Develop and implement national agreements and processes for managing the impact of major pest and disease incursions on Australia’s agricultural, food, fisheries and forestry industries.

Coordinate and contribute to the management of pest and disease incursions affecting the environment and social amenity through the National Environmental Biosecurity Response Agreement (NEBRA).

Maintain currency of the Australian Veterinary Emergency Plan (AUSVETPLAN), the Australian Aquatic Veterinary Emergency Plan (AQUAVETPLAN), and the Australian Emergency Marine Pest Plan (EMPPLAN) and contribute to reviews of the Australian Emergency Plant Pest Response Plan (PLANTPLAN) to effectively manage emergency responses to pests and diseases.

Build collaborative and strategic partnerships with other countries to deliver capacity building projects that assist our near neighbours to manage pests and diseases effectively.

Represent Australia’s interests in the development of domestic and international standards for animal and plant health to meet Australia’s international obligations for disease reporting and to manage domestic animal and plant health.


sound evidence base for the management of pest and disease incursions.

82



Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Responses to pest and disease incursions and outbreaks are managed according to relevant framew orks.

100% 100% 100% 100% 100%

Requests for rapid response assistance in the event of a signif icant exotic pest or disease outbreak are responded to immediately.

- 100% 100% 100% 100%

Reports to international bodies provide up-to-date information on Australia's animal, plant and marine health status, as required by international agreements.

100% 100% 100% 100% 100%

Fund key national surveillance, response and diagnostic

100% 100% 100% 100% 100%

Deliver capacity building projects to the Asia Pacif ic region, to manage pests and diseases.

100% of budget

utilised.

100% of budget utilised.




AUSVETPLAN, AQUAVETPLAN, EMPPLAN and PLANTPLAN reflect current science of emergency responses to plant and animal pests and diseases.

All plansreflect

current science.

All plansreflect

current science.

All plansreflect

current science.

All plansreflect

current science.

All plansreflect

current science.


85% 85% 85% 85% 85%

83


Section 3: Explanatory Tables and Budgeted Financial StatementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014-15 Budget year. It explains how Budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, Special Accounts and Government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of Administered Funds between YearsThe department does not have any movement of administered funds.

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3.1.2 Special AccountsSpecial Accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the Financial Management Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the department.

Table 3.1.1: Estimates of Special Account Flows and BalancesOpening Closingbalance Receipts Payments Adjustments balance

2014–15 2014–15 2014–15 2014–15 2014–152013–14 2013–14 2013–14 2013–14 2013–14

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

26,662 485,011 (479,061) - 32,612 44,206 459,913 (477,457) - 26,662

15 - - - 15 15 - - - 15

847 21,606 (21,543) - 910 879 24,261 (24,293) - 847

- 10,390 (10,390) - - 5,405 17,197 (22,602) - -

2,588 - (1,500) - 1,088 4,199 - (1,611) - 2,588

Total Special Accounts 2014–15 Budget estimate 30,112 517,007 (512,494) - 34,625

Total Special Accounts2013–14 estimated actual 54,704 501,371 (525,963) - 30,112

Australian Quarantine and Inspection Service Special Account – s. 20, FMA Act 1997 (D)1 2

1

National Residue Survey Account – s. 21, FMA Act 1997 [s. 6, National Residue Survey Administration Act 1992 ] (D and A) 2

Wheat Industry Special Account – s. 21, FMA Act 1997 [s. 58 Wheat Export Marketing Act 2008 ] (D)

National Cattle Disease Eradication Account – s. 21, FMA Act 1997 [s. 4, National Cattle Disease Eradication Account Act 1991 ] (A) 1

Natural Resources Management Account – s. 21, FMA Act 1997 [s. 11, Natural Resources Management (Financial Assistance) Act 1

(A) = Administered(D) = Departmental1. The Australian Quarantine Inspection Service ceased to be a business operation in the department from

29 February 2012, but the title of the Special Account has not yet been changed.

85


3.1.3 Australian Government Indigenous Expenditure (AGIE)Table 3.1.2: Australian Government Indigenous Expenditure

Other TotalBill No. 1 Bill No. 2 Special Total Programme

$'000 $'000 $'000 $'000 $'000 $'000Department of AgricultureOutcome 1Departmental 2014–15

Forestry Industry 70 - - 70 - 70 1.3Sustainable Management – Natural Resources 280 - - 280 - 280 1.2

Departmental 2013–14Forestry Industry 70 - - 70 - 70 1.3Sustainable Management – Natural Resources 280 - - 280 - 280 1.2

Total Outcome 1 2014–15 350 - - 350 - 350 Total Outcome 1 2013–14 350 - - 350 - 350

Total departmental 2014–15 350 - - 350 - 350 Total departmental 2013–14 350 - - 350 - 350

Total AGIE 2014–15 350 - - 350 - 350 Total AGIE 2013–14 350 - - 350 - 350

Appropriation

86


3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in Agency Resourcing and Financial StatementsThe financial statements are prepared on an accrual basis where revenues and expenses are recognised as and when the resources are received and used. The agency resourcing table recognises the cash resources available to be used during the period and includes amounts recognised as revenue in previous periods.

3.2.2 Analysis of Budgeted Financial StatementsAn analysis of the primary causes of movements in the budgeted financial statements and administered schedules is provided below. The 2013–14 Portfolio Additional Estimates Statements (PAES) and the 2013–14 estimated actual results are used as comparatives in the analysis.

Budgeted Comprehensive Departmental Income Statement

Comparison to the 2013–14 PAESAs anticipated in the PAES, the department is budgeting for a loss of $20.0 million in 2013–14 after allowing for the financial impact of the net cash appropriation arrangements. The anticipated loss is primarily related to cost recovery arrangements and timing between revenue and expenses.

The department is forecasting expenses of $728.7 million in 2013–14, an increase of $41.9 million from the PAES. The increase is primarily due to increased expenses of $19.1 million associated with staff reductions and the recognition of an operating loss in 2013–14.

The department is budgeting for a loss of $3.4 million in 2014–15 after allowing for the financial impact of the net cash appropriation arrangements. The anticipated loss is mainly due to timing differences between revenue and expenses.

Total expenses in 2014–15 are estimated to be $685.5 million, an increase of $12.8 million from the estimated 2014–15 expenses published in the PAES. The increase reflects the impact of election commitments ($8.2 million), movement of funds ($2.1 million) and additional own-source income ($4.5 million). There are also reductions in expenses relating to the impact of the temporary increase in the annual efficiency dividend ($0.7 million) and reduced funding for the National Landcare Programme ($12.0 million).Trend Analysis

87


Forecast departmental expenses for 2014–15 are $43.2 million less than the 2013–14 estimated actual. This is mainly due to reduced expenses of $15.2 million in the National Landcare Programme (refer Programme 1.2), reduced employee costs associated with staff reductions of $14.7 million and one-off expenses in 2013–14 of $19.1 million to fund voluntary redundancies.

Budgeted Departmental Balance Sheet

The budgeted net asset position as at 30 June 2015 of $23.0 million represents a decrease of $23.3 million from the forecast in the PAES. The decrease is primarily due to the recognition of operating losses in 2013–14 and 2014-15.

Schedule of Budgeted Income and Expenses Administered on Behalf of the Government

Comparison to the PAESEstimated administered income for 2013–14 has increased to $453.3 million from $437.9 million estimated in the PAES. The change is due to increased levies collection from industries ($25.5 million) and a decrease in interest revenue from the Farm Finance – concessional loans programme ($3.6 million).

Estimated administered expenses for 2013–14 have decreased to $886.9 million from $893.3 million estimated in the PAES. A change in the accounting treatment for the Farm Finance – concessional loans programme reduced expenses by $30.5 million. However, there were also increased expenses from measures ($5.5 million) and payments of levies collected from industries ($18.3 million).

The department is forecasting administered income of $467.2 million in 2014–15, an increase of $4.0 million from the estimate published in the PAES ($463.3 million). This is mainly due to a net increase in interest revenue from the Farm Finance – concessional loans programme and an increase in the estimate of levies expected to be collected from industries ($0.9 million).

The department is forecasting administered expenses of $867.7 million in 2014–15, an increase of $6.5 million from the figure reported in the PAES ($861.2 million). The change reflects increased annual administered expenses of $18.4 million for measures, increased special appropriation of $17.1 million for the Farm Household Allowance and a decrease of $30.5 million as a result of the change in accounting treatment for the Farm Finance – concessional loans programme.

Trend Analysis

88


Forecast administered income for 2014–15 is $13.9 million higher than the 2013–14 estimated actual. The change is primarily due to an increase of $21.5 million in interest revenue from the Farm Finance – concessional loans programme and a decrease in levies collected from industries ($7.6 million).

Forecast administered expenses for 2014–15 have decreased by $19.2 million from the 2013–14 estimated actual. Reductions to the administered appropriation total $73.1 million, including: a $15.1 million decrease to Carbon Farming Futures; a $10.1 million decrease in special appropriations relating to levies collected from industries; and a $34.2 million decrease due to terminating measures including $10.0 million for Natural Disaster Recovery and Rebuilding – assistance for communities affected by the 2012–13 Queensland floods; $10.1 million for Extra Assistance to Support Farmers – water-related infrastructure; and $7.7 million for the Transitional Farm Family Payment. These reductions have been partially offset by increases to the administered appropriation totalling $54.0 million, including: $19.3 million for the boosting farm profits through rural research and development programme; and $27.1 million for the Farm Household Allowance special appropriation.

Schedule of Budgeted Assets and Liabilities Administered on Behalf of the Government

Administered assets as at 30 June 2014 and 30 June 2015 are estimated to increase from the PAES by $57.5 million and $319.9 million respectively. This is mainly due to increased loans for the Support to Drought Affected Farmers measure.

Administered liabilities as at 30 June 2014 are estimated to be $67.5 million, a decrease from the $75.0 million estimated in the PAES. This is due to decreased payables to industry bodies. The 30 June 2015 figure is a decrease of $1.1 million from the 2013–14 estimated actual.

The administered net assets as at 30 June 2015 of $961.8 million represents an increase of $451.1 million from the 2013–14 estimated actual. This increase is mainly due to $450.0 million of administered assets and liabilities appropriations provided through Appropriation Bill (No. 2) 2014–15 for the Farm Finance – concessional loans programme and the Support to Drought Affected Farmers measure.

89


3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)for the period ended 30 June

Estimated Budget Forw ard Forw ard Forw ardactual estimate estimate estimate estimate

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 503,116 469,318 467,582 465,775 462,853Suppliers 185,053 193,348 193,081 192,539 200,012Grants 8,472 1,959 2,108 2,028 2,128Depreciation and amortisation 17,248 17,731 18,035 18,900 18,900Finance costs 286 286 286 286 286Write-dow n and impairment of assets 9,336 2,000 - - -Other expenses 5,220 887 887 887 887Total expenses 728,731 685,529 681,979 680,415 685,066LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 343,754 358,164 352,109 358,998 365,309Interest 713 515 438 219 -Other revenue 36,154 17,978 17,322 15,979 16,589Total own-source revenue 380,621 376,657 369,869 375,196 381,898GainsOther gains 3,434 2,900 2,900 2,900 2,900Total gains 3,434 2,900 2,900 2,900 2,900Total own-source income 384,055 379,557 372,769 378,096 384,798Net cost of (contribution by)

services 344,676 305,972 309,210 302,319 300,268Revenue from Government 314,962 292,661 299,344 292,453 290,402* * * *Surplus (Deficit) attributable to

the Australian Government (29,714) (13,311) (9,866) (9,866) (9,866)Total comprehensive income (loss) (29,714) (13,311) (9,866) (9,866) (9,866)Total comprehensive income (loss)

attributable to the Australian Government (29,714) (13,311) (9,866) (9,866) (9,866)


90


Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)for the period ended 30 June (continued)

Note: Impact of Net Cash Appropriation ArrangementsEstimated Budget Forw ard Forw ard Forw ard

actual estimate estimate estimate estimate2013–14 2014–15 2015–16 2016–17 2017–18

$'000 $'000 $'000 $'000 $'000Total comprehensive income

(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations (19,961) (3,445) - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations1 (9,753) (9,866) (9,866) (9,866) (9,866)

Total comprehensive income (loss) – as per the statement ofcomprehensive income (29,714) (13,311) (9,866) (9,866) (9,866)

1. From 2010–11, the Government introduced net cash appropriation arrangements where Appropriation Bill (No. 1) revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

Prepared on Australian Accounting Standards basis.

91


Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)Estimated Budget Forw ard Forw ard Forw ard


$'000 $'000 $'000 $'000 $'000ASSETSFinancial assets

Cash and cash equivalents 3,304 3,304 3,304 3,304 3,304Trade and other receivables 83,461 76,268 85,919 91,433 96,947Other investments 10,500 5,500 1,500 1,500 1,500Other financial assets 5,909 5,822 5,822 5,822 5,822

Total financial assets 103,174 90,894 96,545 102,059 107,573Non-financial assets

Land and buildings 44,767 40,281 34,500 30,169 25,838Property, plant and equipment 17,626 17,948 18,052 17,757 17,462Intangibles 67,422 76,243 77,409 76,669 76,059Inventories 2,749 2,749 2,749 2,749 2,749Other non-financial assets 4,793 4,728 4,728 4,728 4,728

Total non-financial assets 137,357 141,949 137,438 132,072 126,836 Total assets 240,531 232,843 233,983 234,131 234,409LIABILITIESPayables

Suppliers 6,457 6,457 6,457 6,457 6,457Other payables 37,004 35,666 35,666 35,666 35,666

Total payables 43,461 42,123 42,123 42,123 42,123 Interest bearing liabilities

Leases 3,019 3,019 3,019 3,019 3,019Other interest bearing liabilities 9,280 8,150 8,150 8,150 8,150

Total interest bearing liabilities 12,299 11,169 11,169 11,169 11,169 Provisions

Employee provisions 136,252 135,031 136,033 136,033 136,033Other provisions 22,202 21,504 21,504 21,504 21,504

Total provisions 158,454 156,535 157,537 157,537 157,537 Total liabilities 214,214 209,827 210,829 210,829 210,829 Net assets 26,317 23,016 23,154 23,302 23,580 EQUITY*Parent entity interest

Contributed equity 71,051 81,061 91,065 101,079 111,223Reserves 34,925 32,925 32,925 32,925 32,925Retained surplus

(accumulated deficit) (79,659) (90,970) (100,836) (110,702) (120,568)Total parent entity interest 26,317 23,016 23,154 23,302 23,580Total Equity 26,317 23,016 23,154 23,302 23,580

* 'Equity' is the residual interest in assets after deduction of liabilities.


92


Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2014–15)

Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2014Balance carried forw ard from

previous period (79,659) 15,644 19,281 71,051 26,317 Adjustment for changes in

accounting policies - - - - - Adjusted opening balance (79,659) 15,644 19,281 71,051 26,317 Comprehensive income

Surplus (def icit) for the period (13,311) - - - (13,311) Total comprehensive income (13,311) - - - (13,311)

of w hich:Attributable to the Australian Government (13,311) - - - (13,311)

Transactions with ownersContributions by owners

Equity Injection – Appropriation - - - 80 80 Departmental Capital Budget (DCB) - - - 9,930 9,930

Sub-total transactions with owners - - - 10,010 10,010 Transfers betw een equity

components 2,000 - (2,000) - -Estimated closing balance

as at 30 June 2015 (90,970) 15,644 17,281 81,061 23,016 Closing balance attributable to the

Australian Government (90,970) 15,644 17,281 81,061 23,016 Prepared on Australian Accounting Standards basis.

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Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

Appropriations 344,382 299,685 289,524 286,770 284,719 Sale of goods and rendering

of services 334,418 356,164 352,109 358,998 365,309 Interest 713 515 438 219 - Net GST received 18,352 17,464 18,843 18,671 20,050 Other 36,541 18,065 17,322 15,979 16,589

Total cash received 734,406 691,893 678,236 680,637 686,667 Cash used

Employees 503,021 470,539 466,580 465,775 462,853 Suppliers 203,892 210,315 209,024 208,310 217,162 Grants 8,472 1,959 2,108 2,028 2,128 Borrow ing costs 117 117 117 117 117 Other 5,525 1,585 887 887 887

Total cash used 721,027 684,515 678,716 677,117 683,147 Net cash from (used by)

operating activities 13,379 7,378 (480) 3,520 3,520 INVESTING ACTIVITIESCash received

Proceeds from sales of f inancial instruments 12,000 9,000 4,000 - -

Total cash received 12,000 9,000 4,000 - - Cash used

Purchase of property, plant and equipment 29,125 22,388 13,524 13,534 13,664

Purchase of f inancial instruments 9,000 4,000 - - - Total cash used 38,125 26,388 13,524 13,534 13,664 Net cash from (used by)

investing activities (26,125) (17,388) (9,524) (13,534) (13,664) FINANCING ACTIVITIESCash received

Contributed equity 12,746 10,010 10,004 10,014 10,144 Total cash received 12,746 10,010 10,004 10,014 10,144 Net cash from (used by)

financing activities 12,746 10,010 10,004 10,014 10,144 Net increase (decrease)

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

beginning of the reporting period 3,304 3,304 3,304 3,304 3,304 Cash and cash equivalents at the

end of the reporting period 3,304 3,304 3,304 3,304 3,304 Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental Capital Budget StatementEstimated Budget Forw ard Forw ard Forw ard


$'000 $'000 $'000 $'000 $'000NEW CAPITAL APPROPRIATIONS

Capital budget – Bill 1 (DCB) 11,281 9,930 9,999 10,009 10,139 Equity injections – Bill 2 1,465 80 5 5 5

Total new capital appropriations 12,746 10,010 10,004 10,014 10,144 Provided for:

Purchase of non-financial assets 12,746 10,010 10,004 10,014 10,144 Total Items 12,746 10,010 10,004 10,014 10,144

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations 1,465 80 5 5 5 Funded by capital appropriation – DCB1 11,281 9,930 9,999 10,009 10,139 Funded internally from

departmental resources2 16,379 12,378 3,520 3,520 3,520 TOTAL 29,125 22,388 13,524 13,534 13,664 RECONCILIATION OF CASH

USED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 29,125 22,388 13,524 13,534 13,664 Total cash used to

acquire assets 29,125 22,388 13,524 13,534 13,664 1. Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental Capital Budgets.2. Includes the following sources of funding:

– annual and prior year appropriations– internally developed assets– s. 31 relevant agency receipts– proceeds from the sale of assets.

Consistent with information contained in the Statement of Asset Movements and the Budgeted Statement of Cash Flows.

95


Table 3.2.6: Statement of Asset Movements (2014–15)Land Buildings Other Intangibles Total

property,plant and

equipment$'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 2,930 73,501 29,125 112,555 218,111 Accumulated (10) (31,654) (11,499) (45,133) (88,296) Opening net book balance 2,920 41,847 17,626 67,422 129,815 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – appropriation equity1 - - 80 - 80 By purchase – appropriation

ordinary annual services2 - 2,900 4,130 15,278 22,308 Total additions - 2,900 4,210 15,278 22,388 Other movementsAssets held for sale or in a disposal

group held for saleDepreciation/amortisation expense - (7,386) (3,888) (6,457) (17,731)

As at 30 June 2015Gross book value 2,930 76,401 33,335 127,833 240,499 Accumulated

and impairment (10) (39,040) (15,387) (51,590) (106,027) Closing net book balance 2,920 37,361 17,948 76,243 134,472

1. "Appropriation equity" refers to equity injections, appropriations provided through Appropriation Bill (No. 2) 2014-15.

2. "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No. 1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.


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Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 50,330 43,879 29,359 31,012 23,721 Personal benef its 9,790 30,526 35,036 47,088 34,319 Grants 826,744 793,291 773,165 773,171 774,107

Total expenses administeredon behalf of Government 886,864 867,696 837,560 851,271 832,147

LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Other taxes 447,250 439,689 441,724 452,578 462,494 Total taxation revenue 447,250 439,689 441,724 452,578 462,494 Non-taxation revenue

Interest 2,393 23,879 30,100 30,100 30,100 Other revenue 3,675 3,675 3,675 3,675 3,675

Total non-taxation revenue 6,068 27,554 33,775 33,775 33,775 Total own-source revenues

administered on behalf of Government 453,318 467,243 475,499 486,353 496,269

Net cost of (contribution by)services 433,546 400,453 362,061 364,918 335,878

Surplus (Deficit) (433,546) (400,453) (362,061) (364,918) (335,878) Total comprehensive income (loss) (433,546) (400,453) (362,061) (364,918) (335,878)


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Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and cash equivalents 63 63 63 63 63 Trade and other receivables 264,386 714,386 714,386 714,386 714,386 Investments accounted for

using the equity method 243,157 243,157 243,157 243,157 243,157 Other financial assets 69,972 69,972 69,972 69,972 69,972

Total financial assets 577,578 1,027,578 1,027,578 1,027,578 1,027,578 Non-financial assets

Other non-financial assets 651 651 651 651 651 Total non-financial assets 651 651 651 651 651 Total assets administered

on behalf of Government 578,229 1,028,229 1,028,229 1,028,229 1,028,229 LIABILITIESPayables

Suppliers 6,969 6,969 6,969 6,969 6,969 Grants 60,574 59,489 59,489 59,489 59,489

Total payables 67,543 66,458 66,458 66,458 66,458 Total liabilities administered

on behalf of Government 67,543 66,458 66,458 66,458 66,458 Net assets/(liabilities) 510,686 961,771 961,771 961,771 961,771


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Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Taxes 447,250 439,689 441,724 452,578 462,494 Interest 2,393 23,879 30,100 30,100 30,100 Net GST received 46,031 46,175 46,175 46,175 46,175 Other 3,675 3,675 3,675 3,675 3,675


Grant 838,179 794,376 773,165 773,171 774,107 Personal benefits 9,790 30,526 35,036 47,088 34,319 Suppliers 50,330 43,879 29,359 31,012 23,721


operating activities (398,950) (355,363) (315,886) (318,743) (289,703) INVESTING ACTIVITIESCash used

Advances and loans made 250,000 450,000 - - - Total cash used 250,000 450,000 - - - Net cash from (used by)

investing activities (250,000) (450,000) - - - Net increase (decrease) in

cash held (648,950) (805,363) (315,886) (318,743) (289,703) Cash and cash equivalents at

beginning of reporting period 63 63 63 63 63 Cash from Official Public Account for:

– Appropriations 1,123,697 1,306,391 829,698 850,362 832,147 – Special accounts 22,602 10,390 5,862 909 -

1,146,299 1,316,781 835,560 851,271 832,147 Cash to Official Public Account for:

– Appropriations 480,152 501,028 513,812 531,619 542,444 – Special Accounts 17,197 10,390 5,862 909 -

497,349 511,418 519,674 532,528 542,444 Cash and cash equivalents at endof reporting period 63 63 63 63 63


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Table 3.2.10: Schedule of Administered Capital Budget StatementEstimated Budget Forw ard Forw ard Forw ard


$'000 $'000 $'000 $'000 $'000NEW CAPITAL APPROPRIATIONS

Administered Assets andLiabilities – Bill 2 250,000 450,000 - - -

Total new capital appropriations 250,000 450,000 - - -Provided for:

Other Items 250,000 450,000 - - -Total Items 250,000 450,000 - - -

PURCHASE OF NON-FINANCIALASSETS

TOTAL AMOUNT SPENT - - - - -RECONCILIATION OF CASH


Total cash used toacquire assets - - - - -


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AUSTRALIAN GRAPE AND WINE AUTHORITY





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AUSTRALIAN GRAPE AND WINE AUTHORITY



The Australian Grape and Wine Authority (AGWA) will commence on 1 July 2014, following a merger of the Grape and Wine Research and Development Corporation (GWRDC) and Wine Australia Corporation (Wine Australia).

In 2014–15, the AGWA will build on the solid foundations laid down by the GWRDC and Wine Australia to foster and enable a competitive Australian wine industry by investing in research and development (R&D), building markets, disseminating knowledge and ensuring compliance.

The AGWA’s R&D investments are funded from levies paid by grapegrowers and winemakers and matched funding from the Australian Government.

The AGWA’s market development and compliance activities are funded from levies paid by winemakers and wine exporters and by the users of fee-for-service activities. The AGWA’s compliance activities help preserve Australian wine’s international reputation for quality and integrity by licensing exporters, issuing permits for Australian wine and brandy exports, running a label integrity programme to prevent false and misleading labelling and through the Geographical Indications Committee, defining the wine grape producing regions of Australia.

The Australian wine industry, with its 6,300 grapegrowers and 2,500 wineries, is a $4.2 billion industry that provides an estimated $48 billion economic value to Australia and creates 54,000 jobs, many of which are based in 71 regional communities.

The wine industry is Australia’s fifth biggest agricultural exporting sector and each day, almost 30 million glasses of Australian wine are consumed around the world.

Continued successful investment in the development of the Australian wine industry will see the industry further improve its competitiveness and financial sustainability.

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Table 1.1: CAC Act Body Australian Grape and Wine Authority Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–141

Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 2 - 4,569 4,569 3,382 REVENUE FROM GOVERNMENTPayments from related entities

Amounts from the portfolio department - - - 1,050 Total - - - 1,050

Special appropriations3

Australian Grape and Wine Authority Act 2013, s. 32 – payments to the Authority - 28,194 28,194 29,944 Total special appropriations - 28,194 28,194 29,944

Total funds from Government - 28,194 28,194 30,994 FUNDS FROM INDUSTRY SOURCES

Levies4 - 16,625 16,625 18,260 less amounts paid to the CRF - (16,625) (16,625) (18,260) Total - - - -

FUNDS FROM OTHER SOURCESInterest - 295 295 292 Other - 6,178 6,178 5,444 Total - 6,473 6,473 5,736

Total net resourcing for agency - 39,236 39,236 40,112

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AGWA Budget Statements

1. The 2013–14 estimated actual is the sum of the GWRDC and Wine Australia for comparative purposes.2. These funds are carried forward from 2013–14 from the GWRDC and Wine Australia.3. The AGWA is not directly appropriated as it is a CAC Act body. Appropriations are made to the

Department of Agriculture which are then paid to the AGWA and are considered 'departmental' for all purposes.

4. Levies comprise the Grape Research and Development levy and the Wine Research and Development levy, imposed by the Primary Industries (Excise) Levies Act 1999 and Primary Industries (Customs) charges Act 1999.


CRF – Consolidated Revenue Fund

1.3 BUDGET MEASURES

The AGWA does not have any 2014–15 Budget measures.

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Section 2: Outcomes and Planned Performance


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

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the AGWA in achieving Government outcomes.

Outcome 1: Foster and enable a competitive Australian wine industry by investing in research and development, building markets, disseminating knowledge and ensuring compliance.

Outcome 1 StrategyThe AGWA will deliver Outcome 1 through investments in R&D, building markets, disseminating knowledge and ensuring compliance to foster and enable a competitive Australian wine industry. The AGWA’s R&D investments are guided by the wine sector’s strategic priorities, which have been grouped into the four themes of environment and sustainability; consumers and markets; improving products and processes; and extension and adoption.

The AGWA expects to continue its key investments with research providers such as the Australian Wine Research Institute, the National Wine and Grape Industry Centre, the Commonwealth Scientific and Industrial Research Organisation, universities and state agencies to deliver value for its levy payers and the Australian Government and to generate new knowledge in line with stakeholder priorities.

New investments in 2014–15 will build on existing investments to deliver R&D across the four themes. High-priority areas for new investments are process efficiency, vineyard profitability and biosecurity.

The AGWA will provide strategic support to help the wine sector increase and sustain the demand for Australian wine through market development activities to develop and expand the global market for Australian wine; knowledge development to deliver a range of analytical tools and maintain

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an extensive database of wine sector information to help stakeholders make effective decisions; compliance to preserve Australian wine’s international reputation for quality and integrity, and market access to increase Australian wine exports by addressing market access barriers.

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Outcome 1 Expense StatementTable 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted expenses for Outcome 12013–141 2014–15Estimated Estimated

actual expensesexpenses

$'000 $'000Programme 1.1: Australian Grape and Wine AuthorityRevenue from Government

Payment from related entities 1,050 - Special appropriations 29,944 28,194

Revenues from other independent sources 6,698 6,072 Total for Programme 1.1 37,692 34,266

Outcome 1 Totals by resource typeRevenue from Government

Payment from related entities 1,050 - Special appropriations 29,944 28,194

Revenues from other independent sources 6,698 6,072 Total expenses for Outcome 1 37,692 34,266


Outcome 1: Foster and enable a competitive Australian w ine industry by investing in research and development, building markets, disseminating knowledge and ensuring compliance.

1. The 2013–14 estimated actual is the sum of the GWRDC and Wine Australia for comparative purposes.

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Programme 1.1: Australian Grape and Wine Authority

Programme ObjectiveInvest in research and development, building markets, disseminating knowledge and ensuring compliance to foster and enable a competitive Australian wine industry.


Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000Annual departmental expenses:

Australian Grape and Wine Authority 37,692 34,664 34,106 34,152 34,151 Total Programme expenses 37,692 34,664 34,106 34,152 34,151

1. The 2013–14 estimated actual is the sum of the GWRDC and Wine Australia for comparative purposes.

Programme 1.1 DeliverablesEnvironment and sustainability – Wine sector environmental stewardship and sustainability and new knowledge, tools and planting material. The goal of this programme is to ensure that the sector is resilient in the face of a variable and changing climate, production challenges posed by pests and diseases, increased pressure on and scarcity of natural resources and a need to demonstrate and adopt production practices that minimise our environmental footprint.

AGWA investments will help develop tools and strategies to manage a changing climate as well as ones to improve pest and disease management and control. Tools to manage prioritised pest incursions will be developed, as will strategies to enhance the sustainability of the wine sector.

Consumers and markets – The Australian wine sector will be competitive if it produces the wines consumers want, if those wines are produced in a profitable and sustainable manner, and if those wines are accessible to those consumers.

AGWA investments will help the wine sector understand what wine consumers want to buy and why and how to maintain market access in existing markets and improve market access in developing markets. The AGWA will also actively address market access barriers.

Improving products and processes – Enhancing the value proposition for the consumer and producer requires a new set of tools and the evolution of practices by the grape and wine sector. This programme aims to improve products and processes across the value chain.

The AGWA will invest in projects that allow objective measures of quality to be defined and the effects of transport on wine quality better understood.


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Programme 1.1 Deliverables (continued)Market development – Category positioning of Australia to develop awareness of our regions and the diversity of our fine wine offer, extending our presence and reputation globally.

AGWA investments will ensure that the education and engagement of key influencers remains the cornerstone of the AGWA’s approach to market development. The AGWA will continue to deliver global education programs for key influencers, including trade, media, sommeliers, buyers, importers, wine educators, consumers and other key influencers. The AGWA will also facilitate market based programs for Australian wine exporters and local importers to develop and expand the global market for Australian wine.Knowledge development – support the Australian wine sector’s competitiveness through the collection, presentation and dissemination of the global wine sector intelligence.The AGWA will invest in the maintenance and updating of the analytical tools and extensive database of wine sector information that is readily available to assist stakeholders make effective decisions.

Innovation and adoption – The Australian wine sector is faced with the challenge of capturing comparative advantage through clever R&D and constant innovation in grape and wine production techniques, packaging technologies and various route-to-market strategies. The value of our investments are only truly realised when R&D outcomes are taken up and effectively implemented. The AGWA will invest in adoption strategies to increase the rate of adoption of R&D outcomes in the Australian wine sector.Compliance – preservation of Australia’s international reputation for quality and integrity. AGWA investments will ensure that the systems and processes used to licence exporters, issue permits for Australian wine and brandy exports, operate the label integrity programme to prevent false and misleading labelling and manage the Geographical Indications Committee to define wine grape producing regions of Australia, are maintained.

Programme 1.1 Key Performance IndicatorsThe Key Performance Indicators (KPIs) shown on the following page are designed to demonstrate whether or not the AGWA has invested in R&D, helped build markets, disseminated knowledge and ensured compliance to foster and enable a competitive Australian wine industry.The first two KPIs are designed to indicate whether R&D projects have been funded in line with the AGWA’s Annual Operational Plan 2014–15 and actively managed. The next two KPIs measure the effectiveness of the AGWA’s international and domestic market development activities. The subsequent three KPIs measure the wine sector’s satisfaction with knowledge development services and participation in two of the AGWA’s key extension programs as a measure of the dissemination of wine sector intelligence and R&D outcomes to wine sector stakeholders.The final KPI measures the effectiveness of the AGWA’s compliance regime in ensuring the absence of significant adverse incidents affecting the international reputation of Australian wine.


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Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3R&D projects are funded in line w ith the approved Annual Operational Plan.

100% 100% 100% 100% -

R&D contracts are actively managed through regular and ongoing monitoring of the research.

100% 100% 100% 100% -

Continued increase in the percentage of shipments of bottled w ine exports each year > $4.00 per litre.

38.1% 38.3% 38.5% 38.7% 38.9%

Maintained market share for Australian w ine in the Australian domestic market, measured by w holesale sales data (Note: Domestic volume share of total w holesale sales w as 84.5% in calendar year 2013).

84.5% 84.5% 84.5% 84.5% 84.5%

Improvement in customer satisfaction rating for usage of w ine sector intelligence services, as measured by actual customer satisfaction survey.

73.0% 73.5% 74.0% 74.5% 75.0%

An increased number of Innovators’ Netw ork members.

1000 1000 1000 1000 -

The number of regional clusters participating in the regional programme is maintained.

11 11 11 11 -

Absence of any significant adverse incidents affecting the international reputation of Australian w ine.

Absent. Absent. Absent. Absent. -

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Section 3: Explanatory Tables and Budgeted Financial Statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014–15 Budget year. It explains how Budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, Special Accounts and Government Indigenous expenditure.


3.1.1 Movement of Administered Funds Between YearsThe AGWA does not have any administered funds.

3.1.2 Special AccountsThe AGWA does not have any Special Accounts.

3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous statement is not applicable because the AGWA has no Indigenous specific expenses.

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3.2.1 Differences in Agency Resourcing and Financial StatementsThere are no differences between the agency resourcing and financial statements.

3.2.2 Analysis of Budgeted Financial StatementsThe 2014–15 Budget reflects the amalgamation of the activities of Wine Australia and the GWRDC.

The Budget incorporates the contracted and committed research, development and extension activities of the GWRDC and the anticipated marketing programmes and statutory duties of Wine Australia.

The Budget also incorporates any anticipated administrative savings from the merging of the two entities.

AGWA receives levies on the tonnage of fruit grown (Research Levy); grape products used in the manufacture of wine (Wine Grape Levy); and on the value of wine exported (Wine Export Charge). Revenue from these levies, which are collected by the Levies Revenue Service of the Department of Agriculture, is expected to be approximately $17 million for the 2014–15 year, based on an expected 2014 vintage of 1.65 million tonnes.

Research, development and extension expenditure attracts Commonwealth matching funding which is calculated in accordance with the provisions of the Primary Industries Research and Development Act 1989 (PIRD Act).

Other major sources of revenue are export licence and associated fees, promotional user-pay events, export partnership sponsorships and Australian Wine Overseas scheme sales.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (showing net cost of services)(for the period ended 30 June)


2013–141 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 6,109 6,787 6,383 6,499 6,499 Supplier expenses 10,315 6,722 7,929 7,878 7,877 Grants 20,814 20,649 19,496 19,496 19,527 Depreciation and amortisation 454 506 298 279 248 Total expenses 37,692 34,664 34,106 34,152 34,151 LESS: OWN-SOURCE INCOMEOwn-source revenueInterest 292 295 292 292 292 Other 215 398 315 315 315 Sales of goods and services 5,723 5,780 5,421 5,488 5,488 Total own-source revenue 6,230 6,473 6,028 6,095 6,095 Total own-source income 6,230 6,473 6,028 6,095 6,095 Net cost of (contribution by)

services 31,462 28,191 28,078 28,057 28,056 Revenue from Government2

Commonw ealth contribution 12,734 11,569 11,568 11,566 11,565 Industry contributions 18,260 16,625 16,625 16,625 16,625

Total revenue from Government 30,994 28,194 28,193 28,191 28,190 Surplus (Deficit) attributable to the Australian Government (468) 3 115 134 134 Total comprehensive income (loss) (468) 3 115 134 134 Total comprehensive income (loss)

attributable to theAustralian Government (468) 3 115 134 134

1. The 2013–14 estimated actual is the sum of the GWRDC and Wine Australia for comparative purposes.2. Revenue from Government includes a Commonwealth contribution under the PIRD Act and levies

collected from industry by the Department of Agriculture for R&D activities.


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actual estimate estimate estimate estimate

2013–141 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 4,569 4,911 5,199 5,487 5,869 Trade and other receivables 1,744 1,744 1,744 1,744 1,744 Other investments 7,806 7,806 7,806 7,806 7,806

Total financial assets 14,119 14,461 14,749 15,037 15,419 Non-financial assets

Property, plant and equipment 821 783 719 616 458 Intangibles 76 47 38 87 97 Other 580 380 280 180 80

Total non-financial assets 1,477 1,210 1,037 883 635 Total assets 15,596 15,671 15,786 15,920 16,054 LIABILITIESPayables

Suppliers 1,757 1,757 1,757 1,757 1,757 Grants 3,257 3,257 3,257 3,257 3,257 Other 1,507 1,561 1,561 1,561 1,561

Total payables 6,521 6,575 6,575 6,575 6,575 Provisions

Employee provisions 716 734 734 734 734 Other 37 37 37 37 37

Total provisions 753 771 771 771 771 Total liabilities 7,274 7,346 7,346 7,346 7,346 Net assets 8,322 8,325 8,440 8,574 8,708 EQUITY*Parent entity interest

Reserves 202 202 202 202 202 Retained surplus

(accumulated deficit) 8,120 8,123 8,238 8,372 8,506 Total equity 8,322 8,325 8,440 8,574 8,708

1. The 2013–14 estimated actual is the sum of the GWRDC and Wine Australia for comparative purposes.* 'Equity' is the residual interest in assets after deduction of liabilities.


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Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2014–15)

Retained Asset Totalearnings Revaluation equity

Reserve$'000 $'000 $'000


previous period1 8,120 202 8,322 Adjusted opening balance 8,120 202 8,322 Comprehensive income

Surplus (deficit) for the period 3 - 3 Total comprehensive income 3 - 3

of w hich:Attributable to the Australian Government 3 - 3

Estimated closing balanceas at 30 June 2015 8,123 202 8,325

Closing balance attributable to the Australian Government 8,123 202 8,325

1. These funds are carried forward from 2013–14 from the GWRDC and Wine Australia.


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Table 3.2.4: Budgeted Departmental Statement of Cash Flows(for the period ended 30 June)


2013–141 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Interest 292 295 292 292 292 Grants 30,994 28,194 28,193 28,191 28,190 Net GST received 2,276 - - - - Other 5,444 5,904 5,636 5,454 5,703


Employees 5,919 6,769 6,383 6,493 6,499 Suppliers 10,097 8,495 7,574 7,280 7,877 Grants 21,233 18,467 19,496 19,496 19,527 Net GST paid 355 355 355 355 -


operating activities 1,402 307 313 313 282 INVESTING ACTIVITIESCash received

Investments - 200 100 100 100 Total cash received - 200 100 100 100 Cash used

Purchase of property, plant and equipment 215 165 125 125 -

Total cash used 215 165 125 125 - Net cash from (used by)

investing activities (215) 35 (25) (25) 100 Net increase (decrease)

in cash held 1,187 342 288 288 382 Cash and cash equivalents at the

beginning of the reporting period2 3,382 4,569 4,911 5,199 5,487 Cash and cash equivalents at the

end of the reporting period 4,569 4,911 5,199 5,487 5,869 1. The 2013–14 estimated actual is the sum of the GWRDC and Wine Australia for comparative purposes.2. These funds are carried forward from 2013–14 from the GWRDC and Wine Australia.


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$'000 $'000 $'000 $'000 $'000PURCHASE OF NON-FINANCIAL

ASSETSFunded internally from

departmental resources2 215 165 125 125 - TOTAL 215 165 125 125 - RECONCILIATION OF CASH


Total purchases 215 165 125 125 - Total cash used to

acquire assets 215 165 125 125 - 1. The 2013–14 estimated actual is the sum of the GWRDC and Wine Australia for comparative purposes.2. Includes the following source of funding:

– internally developed assets.


Table 3.2.6: Statement of Asset Movements (2014–15)Other Intangibles Total

property,plant and

equipment$'000 $'000 $'000

As at 1 July 2014Gross book value 3,712 657 4,369 Accumulated depreciation/amortisation

and impairment (2,755) (443) (3,198) Opening net book balance1 957 214 1,171 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – other 165 - 165 Total additions 165 - 165 Other movementsDepreciation/amortisation expense (339) (167) (506) Total other movements (339) (167) (506) As at 30 June 2015Gross book value 3,877 657 4,534 Accumulated depreciation/amortisation

and impairment (3,094) (610) (3,704) Closing net book balance 783 47 830

1. These funds are carried forward from 2013–14 from the GWRDC and Wine Australia.


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COTTONRESEARCH AND DEVELOPMENT CORPORATION





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CRDC Budget Statements

COTTONRESEARCH AND DEVELOPMENT CORPORATION



The Cotton Research and Development Corporation (CRDC) is committed to its role of enabling the Australian cotton industry to be globally competitive and responsible through strategically investing in research, development and extension (RD&E).

In 2014–15 the CRDC plans to invest $24.2 million in RD&E in alignment with the priorities established under its five-year Strategic Research and Development (R&D) Plan 2013–2018. This will be the second year of operation under the strategy and follows a fourth consecutive year of above average cotton production and revenue. These circumstances have facilitated a growth in R&D expenditure and the rebuilding of research capacity and financial reserves for the purpose of sustaining cotton industry RD&E during drought.

The CRDC’s five-year strategy responds to ongoing challenges to industry profitability, competitiveness and sustainability. The strategy is based on connecting insights about changes in society with the evolving cotton sector issues and identifies the critical importance of responding with better knowledge sharing and even stronger relationships between farmers, industry and customers.

Australian cotton farmers achieve exceptionally high yields, nearly three times the world average, but are increasingly concerned with the impact of rising input costs on profitability. Farmers have relied upon annual productivity gains from improved varieties and management but the potential for ongoing gains is at risk as yields approach current genetic yield limits for cotton. In response the CRDC is investing in research focused on protecting the crop from pests as well as enhancing crop management for quality and yield outcomes. The CRDC’s strategy places greater emphasis on driving optimal resource efficiency and includes a new commitment to seeking innovations to transform the future profitability of cotton production.

Nationally, the Australian cotton industry generates significant wealth, with exports in excess of $2 billion annually. It also provides an economic foundation to many regional and remote economies with employment of up

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to 14,000 people. Despite this, the industry faces ongoing challenges from competition for land, water and labour, climate variability, a reliance on key technologies and, like all industries, is subject to a growing social and environmental awareness and scrutiny. These challenges are equally opportunities for the Australian cotton industry given its acceptance of responsibilities for improved environmental performance and demonstrated capacity to act collectively. In response, the CRDC is investing in industry’s biosecurity preparedness, stewardship of key production technologies and the responsible management of natural resources. The CRDC’s strategy places greater emphasis on landscape-scale management approaches and recognition of the inter-relationships with other industries. The strategy includes a new commitment to proactively developing an understanding of emerging social and environmental issues, including changes in technology, so that the Australian cotton industry can be a global leader in sustainable agriculture into the future.

As a result of the CRDC’s past investments in supply chain research, the industry has a greater understanding of the needs of customers beyond spinning mills to the markets for Australian cotton and the value of its products. This knowledge has informed a new industry-led marketing initiative that seeks to secure access to preferred markets and increase demand along the supply chain for Australian cotton. This comes at a time where, globally, cotton’s ongoing competitiveness as a fibre is subject to challenges from man-made fibres and the Australian cotton industry is critically exposed as one of the top five cotton exporters in the world. In response, the CRDC is investing in research to better inform customers of the qualities of Australian cotton and differentiate the value of its products. The CRDC’s strategy places greater emphasis on ensuring customers can be assured of the fibre quality, sustainable practices and impact of Australian cotton production. The strategy includes a new commitment to instigating R&D that can prepare industry for market changes, transform consumer demand and enable the Australian cotton industry to capture the full value if its products into the future.

The capacity of the Australian cotton industry to innovate, adapt and adopt the results of its R&D remains key to the ultimate impact of the CRDC’s investments. In response the CRDC is investing in the capability of people and the adoption of research through a unique joint venture industry collaboration in extension. The CRDC’s strategy places a greater emphasis on providing knowledge to underpin development of an industry workforce strategy and includes a new commitment to measuring the performance of the industry and its RD&E to inform continuous improvement.

The CRDC recognises the importance of responding to stakeholder and corporate requirements for improvement to the efficiency and effectiveness of operations. In doing so the CRDC is actively engaged with the national

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rural R&D effort to ensure its investments and activities are aligned and synergistic.

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Table 1.1: CAC Act body Cotton Research and Development Corporation Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 39,748 - 39,748 39,261 REVENUE FROM GOVERNMENTSpecial appropriations1

Primary Industries and Energy Research and Development Act 1989 s.30(3) – Cotton R&D - 17,131 17,131 20,604 Total special appropriations - 17,131 17,131 20,604



FUNDS FROM OTHER SOURCESInterest - 850 850 2,069 Royalties - 1,182 1,182 3,502 Other - 1,527 1,527 1,366 Total - 3,559 3,559 6,937

Total net resourcing for agency 39,748 20,690 60,438 66,802 1. The CRDC is not directly appropriated as it is a CAC Act body. Appropriations are made to the

Department of Agriculture which are then paid to the CRDC and are considered 'departmental' for all purposes.

2. The levy is imposed and collected under the following legislation: Primary Industries Research and Development Act 1989 (PIRD Act), Primary Industries (Excise) Levies Act 1999, Primary Industries Levies and Charges Collection Act 1991 and associated legislation.



1.3 BUDGET MEASURES

The CRDC does not have any 2014–15 Budget measures.

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

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the CRDC in achieving Government outcomes.

Outcome 1: Adoption of innovation that leads to increased productivity, competitiveness and environmental sustainability through investment in research and development that benefits the Australian cotton industry and the wider community.

Outcome 1 StrategyThe CRDC goals, performance indicators and targets for measuring the achievement of the outcome are set out in the CRDC’s strategic plan that finishes in 2018.

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expenses$'000 $'000

Program 1.1: Cotton Research and Development CorporationRevenue from Government

Special appropriations 8,736 8,513 Special appropriations – Industry Levies 8,736 8,618

Revenues from other independent sources 4,474 3,313 Reserves - 3,734

Total for Program 1.1 21,946 24,178 Outcome 1 Totals by resource typeRevenue from Government

Special appropriations 8,736 8,513 Special appropriations – Industry Levies 8,736 8,618

Revenues from other independent sources 4,474 3,313 Reserves - 3,734 Total expenses for Outcome 1 21,946 24,178


Outcome 1: Adoption of innovation that leads to increased productivity, competitiveness and environmental sustainability through investment in research and development that benefits the Australian cotton industry and the w ider community.

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Programme 1.1: Cotton Research and Development Corporation

Programme ObjectiveEnhanced performance of the Australian cotton industry and community through investments in research and development, and its application.

Programme Expenses2013–14 2014–15 2015–16 2016–17 2017–18Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3


Cotton Research and DevelopmentCorporation 21,946 24,178 21,843 14,807 16,779


Programme 1.1 DeliverablesUnder the strategic plan, five goals set the direction for initiatives to be undertaken that deliver the outcome. They are:

cotton is profitable and consistently farmers’ crop of choice;

the Australian cotton industry is the global leader in sustainable agriculture;

the Australian cotton industry captures the full value of its products;

capable and connected people driving the cotton industry; and

measured performance of the Australian cotton industry and its RD&E drives continuous improvement.


Key performance Revised Budget Forw ard Forw ard Forw ardindicators Budget year 1 year 2 year 3Industry productivity grow th per hectare per annum.

3% 3% 3% 3% 3%

Industry reports to customer needs for sustainability indicators.

Report. Report. Report. Report. Report.

Coverage of Best Management Practice systems across Australian cotton industry.

65% 70% 75% 80% 80%

Primary Industries Skills Council (PISC) cotton and cross-sectoral RD&E strategies supported.

Report. Report. Report. Report. Report.

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3.1.1 Movement of Administered Funds Between YearsThe CRDC does not have any administered funds.

3.1.2 Special AccountsThe CRDC does not have any Special Accounts.

3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous statement is not applicable because the CRDC has no Indigenous specific expenses.

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3.2.1 Analysis of Budgeted Financial StatementsThe forecast for 2013–14 is for a reduction in cotton production (3.0 million bales) and revenue. Forward estimates by industry and Australian Bureau of Agricultural and Resource Economics and Sciences are for reduced levels of cotton production for2014–15 and 2015–16. The decline in production will result in revenue declining below forecast expenditure resulting in deficits in 2014–15 and 2015–16.

To achieve the strategic priorities of the R&D strategic plan for the period 2013–18, the CRDC is budgeting for $100 million of expenditure during the five year strategic plan. The CRDC has budgeted for revenue of $20.4 million in 2014–15 and expenditure of $24.1 million, resulting in a deficit of $3.7 million.

The Australian Government general matching of industry contributions is expected to be limited by either the value of levies collected or 0.5 per cent of the cotton industry’s three year average gross value of production. Which trigger will apply depends on the price of cotton, timing of the harvest and ginning, and the variability of the crop size. Royalties from the sale of domestic and international planting seed, interest on investments, external grant revenue and research project refunds make up the balance of the CRDC’s income.

Reserves have increased due to surpluses in the 2010–11 to 2013–14 years. The CRDC plans to use the reserves to maintain research expenditure at a consistent level in future years when crop levels are below historical averages. The balance of expenditure and reserves will be closely monitored to ensure that reserves remain at an appropriate level.

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3.2.2 Budgeted Financial Statements Tables

Table 3.2.1 Comprehensive Income Statement (showing net cost of services) (for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benef its 2,067 2,221 2,275 1,999 1,922 Supplier expenses 1,239 1,091 1,117 1,039 1,132 Grants 18,530 20,756 18,311 11,629 13,645 Depreciation and amortisation 110 110 140 140 80 Total expenses 21,946 24,178 21,843 14,807 16,779 LESS: OWN-SOURCE INCOMEOwn-source revenueInterest 1,575 850 625 690 630 Rental income 5 5 5 5 5 Royalties 2,452 1,182 754 612 660 Other 1,245 1,276 779 648 209 Total own-source revenue 5,277 3,313 2,163 1,955 1,504

Net cost of (contribution by)services 16,669 20,865 19,680 12,852 15,275

Revenue from Government1

Commonw ealth contribution 10,302 8,513 6,486 6,372 7,445 Industry contributions 10,302 8,618 6,592 6,480 7,830

Total revenue from Government 20,604 17,131 13,078 12,852 15,275 Surplus (Deficit) 3,935 (3,734) (6,602) - - Surplus (Deficit) attributable to the

Australian Government 3,935 (3,734) (6,602) - - 1. Revenue from Government includes a Commonwealth contribution under the PIRD Act and levies

collected from industry by Department of Agriculture for R&D activities.


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Cash and cash equivalents 39,748 35,858 29,108 29,193 29,073 Trade and other receivables 4,501 4,500 4,500 4,500 4,500


Land and buildings 807 842 887 902 907 Property, plant and equipment 84 118 166 159 187 Intangibles 99 186 241 148 235 Other 10 10 10 10 10

Total non-financial assets 1,000 1,156 1,304 1,219 1,339 Total assets 45,249 41,514 34,912 34,912 34,912 LIABILITIESPayables

Suppliers 31 30 30 30 30 Grants 2,000 2,000 2,000 2,000 2,000 Other 30 30 30 30 30


Employee provisions 322 322 322 322 322 Total provisions 322 322 322 322 322 Total liabilities 2,383 2,382 2,382 2,382 2,382 Net assets 42,866 39,132 32,530 32,530 32,530 EQUITY*

Reserves 346 346 346 346 346 Retained surplus 42,520 38,786 32,184 32,184 32,184

Total equity 42,866 39,132 32,530 32,530 32,530 * 'Equity' is the residual interest in assets after deduction of liabilities.


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Retained Asset Totalearnings revaluation equity

reserve$'000 $'000 $'000


previous period 42,520 346 42,866 Adjusted opening balance 42,520 346 42,866 Comprehensive income

Surplus (deficit) for the period (3,734) - (3,734) Total comprehensive income (3,734) - (3,734)

of w hich:Attributable to the Australian Government (3,734) - (3,734)




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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Industry contributions 10,302 8,513 6,486 6,372 7,445 Revenue from Government 10,302 8,618 6,592 6,480 7,830 Interest 2,069 850 625 690 630 Net GST received 2,040 1,966 1,818 1,146 1,410 Other 4,868 2,709 1,692 1,392 961


Employees 2,087 2,220 2,275 1,999 1,923 Suppliers 1,574 1,198 1,228 1,119 1,235 Grants 25,080 22,832 20,142 12,792 15,009 Other 30 30 30 30 30


operating activities 810 (3,624) (6,462) 140 79 INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 323 266 288 55 200

Total cash used 323 266 288 55 200 Net cash from (used by)

investing activities (323) (266) (288) (55) (200) Net increase (decrease)

in cash held 487 (3,890) (6,750) 85 (121) Cash and cash equivalents at the



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departmental resources1 323 266 288 55 200 TOTAL 323 266 288 55 200 RECONCILIATION OF CASH


Total purchases 323 266 288 55 200 Total cash used to

acquire assets 323 266 288 55 200 1. Includes the following sources of funding:



Table 3.2.6: Statement of Asset Movements (2014–15)Land Buildings Other Computer Total

property, softw areplant and and

equipment intangibles$'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 180 656 196 293 1,325 Accumulated

depreciation/amortisation and impairment - (29) (112) (194) (335)

Opening net book balance 180 627 84 99 990 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – other - 50 61 155 266 Total additions - 50 61 155 266 Other movementsDepreciation/amortisation expense - (15) (27) (68) (110)

Total other movements - (15) (27) (68) (110) As at 30 June 2015Gross book value 180 706 257 448 1,591 Accumulated

depreciation/amortisation and impairment - (44) (139) (262) (445)

Closing net book balance 180 662 118 186 1,146 Prepared on Australian Accounting Standards basis.

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FISHERIESRESEARCH AND DEVELOPMENT CORPORATION





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FISHERIESRESEARCH AND DEVELOPMENT CORPORATION



1.1.1 The Business EnvironmentThe Fisheries Research and Development Corporation’s (FRDC’s) role is to plan and invest in fisheries research, development and extension (RD&E) activities in Australia. As a national organisation with strong linkages to industry, managers and researchers, the FRDC has a fundamental role to provide leadership and is strategically placed to coordinate. This positioning also allows the FRDC to communicate and network with partners to leverage and broker knowledge to get the best results from RD&E for the Government, industry and the community.

The role the FRDC plays is unique among the rural research and development corporations (RDCs) in that it balances investment priorities between natural resource management and industry productivity and development. The majority of the FRDC’s RD&E investment addresses public good priorities so as to ensure sustainable fisheries management and sustainable habitats. The key roles the FRDC plays in fisheries RD&E are:

• project planning, management and extension across Government agencies and industry nationally;

• facilitation and partnership activities with research partners;• collaboration across other RDCs, independent agencies/states and

international organisations; and• leverage of investment funds across Australia.

The FRDC aims to maximise the benefits from its investment by ensuring that the activity is well targeted, meets the RD&E priorities of the Government and industry and builds on previous achievements where applicable.

The FRDC achieves this through establishing strong relationships and putting in place mechanisms to identify and address RD&E priorities with the Government and industry stakeholders. In addition the FRDC monitors and evaluates the adoption of research and development (R&D) outputs to better inform future decisions.

With its partners, the FRDC promotes the results of RD&E and pursues adoption and, when appropriate, commercialisation by the end-users. It also

135

raises awareness of vital issues related to the fishing and aquaculture industry such as industry development, social and economic impacts on fishing communities and the health benefits of eating seafood.

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FRDC Budget Statements

1.1.2 External Drivers for R&D InvestmentThe Australian fishing industry, comprising commercial, Indigenous and recreational sectors, is complex and diverse in nature. Forecasting conditions for the industry remains variable as is the case for all primary industries. The value of Australia’s currency, fuel prices and climate variability all play a role. Notwithstanding, it is the Australian Government’s focus to reduce red and green tape, reduce operating costs and improve profitability. A significant component of the regulatory reduction will involve improved harmonisation of fisheries and aquaculture management between jurisdictions including resolving and improving shared stock arrangements as well as sharing of research and development capabilities.

The fishing industry is Australia’s sixth most valuable food-based primary industry with a landed value of more than $2.4 billion a year (Australian Fisheries Statistics, December 2013). In addition an estimated 3.4 million Australians fish recreationally each year (Australian Fisheries Statistics, 2011), spending an estimated $2.5 billion (extrapolated from the National Recreational and Indigenous Fishing Survey, 2000). For Indigenous communities, the fishing industry not only provides a significant role in culture and subsistence but also an avenue for economic and community development.

The FRDC is responsible for investing in and delivering information to stakeholders. It provides RD&E services in response to demand from industry and government stakeholders. Knowledge generated by the FRDC’s investment in RD&E assists stakeholders to meet a range of economic, social and environmental objectives for the fishing industry. The competing demands of stakeholders for the limited resources available to the FRDC are balanced through strategic planning and associated stakeholder consultative processes to develop balanced investment RD&E programmes.

The FRDC’s investments are informed primarily by advice from its representative organisations. In addition it consults widely with other stakeholders. The business environment in which the FRDC operates is characterised by:

• an emphasis on natural resource management;• specific priorities of the diverse sectors of the fishing and aquaculture

industry (commercial, recreational and Indigenous);• geographic diversity, because Australia’s waters extend from the tropics

to the Antarctic, and include both marine and freshwater; and• a broad range of products, including commercial and recreational

species, and farmed species; and consideration of any protected species.

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National Fishing and Aquaculture RD&E Strategy and FRDC Strategic Plan

The FRDC will take a lead role in developing the next version of the Strategy, while continuing to implement the current Strategy. The FRDC will work in partnership with the Australian Fisheries Management Forum and the FRDC’s representative bodies to help advance RD&E principles, funding and management arrangements within a regional and national approach.

The FRDC is also required to prepare a new Strategic Plan for approval by the Minister for Agriculture. There is considerable synergy between the development of the National Strategy and the FRDC Plan; as a result, the FRDC will align the planning processes.

Improve public confidence in fishing and aquaculture as a major part of Australia’s economy

The FRDC will focus on evolving the approach it uses from an investor in RD&E to include being a service provider for non RD&E activities such as marketing and promotion, market access, and standards development. It will continue to invest in promoting the science that underpins the fishing industry.

Address resource access and allocation issues

The FRDC will assist with the risk-based assessment of threats facing the marine environment for marine bioregional planning. It will also look to address resource allocation issues between resource users (commercial, Indigenous and recreational), and as part of this develop a proposal to fund the national recreational fishing survey.

Address bycatch and habitat loss

The FRDC will develop options for habitat improvement based on science to inform and evaluate the performance of direct action to re-establish productivity. It will also invest in R&D to assist managers and industry to develop an acceptable reporting process for threatened, endangered and protected (TEP) species and bycatch.

Reduce regulation complexity and duplication

The FRDC will invest in research that will underpin fisheries management decisions, including looking at how to mainstream adaptation to climate change and variability within current management arrangements. It will contribute to establishing the principles for a harmonised national and regional fisheries management framework – including simplified

138


performance reporting using equivalence principles – linked to the Status of Key Australian Fish Stocks Reports. The FRDC will also look for opportunities to develop new fisheries standards where possible.

139


Grow the value and productivity of the industry

The FRDC will invest in areas that will improve productivity and value of all sectors of the industry. This will include working to improve the consumer experience; working on consistency and quality of Australian seafood products, and improving seafood labelling by expanding and promoting the Fish Names Standard; increasing production volumes by expanding and developing new fisheries and aquaculture operations (National Aquaculture Strategy); and improving recreational fishing quality experiences. Supporting this growth, the FRDC will review its investment in aquatic animal health and ensure it aligns and contributes to improved biosecurity investment planning and implementation of the new AquaVet Plan. The FRDC will work with the Indigenous Reference Group to assist in delivering the RD&E identified for Indigenous communities.

Market research

Understanding markets and what they mean to industry is a large part of growing the value and productivity of the industry. Market research will play a central role to improve knowledge and identify any trade and market access issues and technical barriers.

Marketing and Promotion

The FRDC put in place resources, policies and mechanisms to carefully consult with stakeholders on how they might benefit from the FRDC undertaking marketing and promotion activities if requested. This consultation will include how to establish industry funding mechanisms for national and sector based marketing.

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Table 1.1: CAC Act body Fisheries Research and Development Corporation Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 5,398 - 5,398 4,963 REVENUE FROM GOVERNMENT


Corporation - 18,287 18,287 18,161 Total special appropriations - 18,287 18,287 18,161


Levies2 - 900 900 890 less amounts paid to the CRF - (900) (900) (890) Industry contributions - 7,832 7,832 8,032 Total - 7,832 7,832 8,032

FUNDS FROM OTHER SOURCESInterest - 260 260 250 Sale of goods and services - 20 20 52 Other - 602 602 500 Total - 882 882 802

Total net resourcing for agency 5,398 27,001 32,399 31,958

Primary industries Research and Development Act 1989, s. 30A(3) & s. 30B(9) – Fisheries R&D

1. The FRDC is not directly appropriated as it is a CAC Act body. Appropriations are made to the Department of Agriculture, which are then paid to the FRDC and are considered 'departmental' for all purposes.

2. The levies are collected under the Primary Industries Research and Development Act 1989 (PIRD Act) and the Fishing Levy Regulations and are remitted to the Department of Agriculture and transferred to the CRF. An equivalent amount of FRDC management levy is paid by the Department of Agriculture to the FRDC under a special appropriation under the PIRD Act.



1.3 BUDGET MEASURES

The FRDC does not have any 2014–15 Budget measures.

141





Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the FRDC in achieving Government outcomes.

Outcome 1: Increased knowledge that fosters sustainable economic, environmental and social benefits for the Australian fishing industry; including indigenous, recreational, commercial and aquaculture sectors, and the community; through investing in research, development and adoption.

Outcome 1 StrategyThe FRDC’s mission is to maximise economic, environmental and social benefits for its stakeholders through effective investment and partnership in research and development.

The FRDC has defined the following five RD&E programme components to address the diverse nature of the FRDC’s business environment and the range of demands of its stakeholders:• environments;• industries;• communities;• people; and• extension and adoption.

In 2014–15, the FRDC will also continue to work to address the key issues for all sectors of the fishing industry including:• profitability and cost of production;• marketing and promotion;• improving coastal marine habitats and increasing fish stocks;• aquatic animal health and biosecurity;• development of new seafood products;• price competition in the domestic market; and

142


• addressing perceptions of the science that underpins the fishing industry.



Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Increased knowledge that fosters sustainable 2013–14 2014–15economic, environmental and social benefits for the Estimated EstimatedAustralian fishing industry; including indigenous, actual expensesrecreational, commercial and aquaculture sectors, expensesand the community; through investing in research,development and adoption. $'000 $'000Programme 1.1: Fisheries Research & Development Revenue from Government 18,161 18,287 Revenues from industry sources 9,089 8,872 Revenues from other independent sources 302 280

Total for Programme 1.1 27,552 27,439 Outcome 1 Totals by resource typeRevenue from Government 18,161 18,287 Revenues from industry sources 9,089 8,872 Revenues from other independent sources 302 280 Total expenses for Outcome 1 27,552 27,439


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Programme 1.1: Fisheries Research and Development Corporation

Programme ObjectiveTo invest in research, development and extension to deliver increased knowledge that fosters sustainable economic, environmental and social benefits for the Australian fishing industry; including Indigenous, recreational, commercial, aquaculture sectors, and the community.



Fisheries Research & Development Corporation 27,552 27,439 27,614 27,598 28,122


Programme Components2013–14 2014–15 2015–16 2016–17 2017–18Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'0001.1.1 – Component 1

Annual Departmental Expenses:Environment 9,640 10,552 10,447 10,344 10,481

1.1.2 – Component 2Annual Departmental Expenses:

Industry 8,965 8,670 8,557 8,445 8,557 1.1.3 – Component 3

Annual Departmental Expenses:Communities 467 491 486 481 487

1.1.4 – Component 4Annual Departmental Expenses:

People Development 2,055 2,209 2,186 2,165 2,194 1.1.5 – Component 5

Annual Departmental Expenses:Extension and Adoption 1,362 1,472 1,458 1,443 1,463

Management and Accountability 5,063 4,045 4,480 4,720 4,940 Total Programme expenses 27,552 27,439 27,614 27,598 28,122

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Programme 1.1 Deliverables

EnvironmentProvide investment in research and development that addresses: biosecurity and aquatic animal health; ecologically sustainable development; ecologically sustainable development; habitat and ecosystem protection; and climate change.

Industry Development Provide investment in research and development that addresses: resource access and allocation; growth and profitability; governance and regulatory systems; maximising value from aquatic resources; and consumers and markets.

Communities Provide investment in research and development that addresses community resilience and development.

People DevelopmentProvide investment in research and development that addresses: leadership development; workforce development; and innovation skills.

Extension and AdoptionProvide investment in extension and adoption activities that aim to transfer knowledge generated from research and development activities.

Management, Communications and Accountability Meet statutory and Australian Government requirements. Undertake cost-benefit analysis to quantify the effectiveness of FRDC investments. Provide access to information about research outputs and outcomes through websites, publications and reports.

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Key performance Revised Budget Forw ard Forw ard Forw ardindicators Budget year 1 year 2 year 3Projects focus on the FRDC Board’s assessment of priority research and development issues.

95% 95% 95% 95% 95%

Projects are assessed as meeting high standards/peer review requirements for improvements in performance and likely adoption.

95% 95% 95% 95% 95%

Establishment of Atlantic Salmon health centre.

Centre Established.

- - - -

One project to develop positive control materials for exotic pathogens.

1 project. - - - -

One project to develop techniques to mitigate w hale interactions w ith f ishing gear.

1 project. - - - -

One project to assess interaction of f ishing gear southern ocean

1 project. - - - -

Report on the completion of Fishing and Aquaculture Climate Change Programme.

1 report. - - - -

One project to assess potential for reporting on social economic and environmental parameters for individual f isheries.

1 project. - - - -

Second Status of Australian Fish Stocks report Completed.

1 report. - - - -

Extension of National Harvest Strategy Guidelines undertaken.

Guidelines extended to stakeholder

- - - -

Methods for setting economic target reference points multi-species f isheries completed.

Methods established.

- - - -

Report on Indigenous cultural f ishing and f isheries governance.

1 report.

Transition of Seafood CRC projects and outputs to the FRDC.

Projects transitioned.

- - - -

Tw o industries undertaken market development activities into export markets.

2 markets developed.

- - - -

Establishment of tw o new FRDC subprogrammes to address priorities for the Indigenous and recreational sectors.

2 sub-programmes created.

- - - -


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Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3One report that develops and tests social objectives for f isheries management completed.

1 report. - - - -

17 participants complete leadership courses.

17 participants.

- - - -

Second capability audit completed for research capacity.

Audit completed.

- - - -

15 participants complete bursary programme.

15 participants.

- - - -

80% of projects complete extension strategies at start of

80% - - - -

Maintain ISO9001:2008 1 1 1 1 1Submit planning and reporting documents in accordance w ith legislative and Australian Government requirements and

100% 100% 100% 100% 100%

Implement best practice governance arrangements to promote transparency, good business performance and

100% 100% 100% 100% 100%

Demonstrate the benefits of RD&E investments by positive benef it cost analysis results.

100% 100% 100% 100% 100%

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3.1.1 Movement of Administered Funds Between YearsThe FRDC does not have any administered funds.

3.1.2 Special AccountsThe FRDC does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure (AGIE)Table 3.1.1: Australian Government Indigenous Expenditure

Other TotalBill No. 1 Bill No. 2 Special Total Programme

$'000 $'000 $'000 $'000 $'000 $'000Fisheries Research & Development CorporationOutcome 1Departmental 2014–15 - - - - 694 694 1.1Departmental 2013–14 - - - - 1,102 1,102 1.1Total Outcome 1 2014–15 - - - - 694 694 Total Outcome 1 2013–14 - - - - 1,102 1,102

Total departmental 2014–15 - - - - 694 694 Total departmental 2013–14 - - - - 1,102 1,102

Total AGIE 2014–15 - - - - 694 694 Total AGIE 2013–14 - - - - 1,102 1,102

Appropriation

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3.2.1 Analysis of Budgeted Financial StatementsThe FRDC’s RD&E expenditure is dependent on the gross value of production (GVP) for the Australian fishing industry. The Australian Bureau of Agricultural and Resource Economics and Sciences indicate the GVP for the Australian fishing industry will remain relatively static, with only limited growth expected in the 2014–15 year. This is based on aquaculture which is anticipated to grow; however some uncertainty remains around the size of this growth. Income contributions from the commercial sector are expected to maintain current levels. There may be an additional income stream related to the commencement of marketing activities. The amount of income from this stream is not likely to be significant in 2014–15, but is likely to grow in future years.

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3.2.2 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (showing net cost of services) (for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 2,158 2,375 2,542 2,669 2,802 Supplier expenses 1,265 1,420 1,685 1,795 1,880 Grants 22,339 22,934 22,434 22,078 22,342 Depreciation and amortisation 450 250 253 256 258 Write-dow n of intangibles 1,140 - - - - Other 200 460 700 800 840 Total expenses 27,552 27,439 27,614 27,598 28,122 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 52 20 20 20 20 Interest 250 260 260 260 260 Contributions 7,960 7,881 7,483 7,106 6,846 Other 593 1,002 1,103 1,103 1,525 Total own-source revenue 8,855 9,163 8,866 8,489 8,651 Total own-source income 8,855 9,163 8,866 8,489 8,651 Net cost of (contribution by)


Commonw ealth contribution 18,161 18,287 18,761 19,116 19,476 Total revenue from Government 18,161 18,287 18,761 19,116 19,476 Surplus (Deficit) attributable to the

Australian Government (536) 11 13 7 5 Total comprehensive income (loss) (536) 11 13 7 5 Total comprehensive income (loss)

attributable to theAustralian Government (536) 11 13 7 5

1. Revenue from Government includes a Commonwealth contribution under the PIRD Act and levies collected from industry by the Department of Agriculture for R&D activities.


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Cash and cash equivalents 5,398 5,071 5,373 5,851 5,919 Trade and other receivables 1,126 1,526 1,382 1,087 1,107 Investments 5 5 5 5 5


Property, plant and equipment 77 75 83 82 89 Intangibles 819 719 584 443 328

Total non-financial assets 896 794 667 525 417 Total assets 7,425 7,396 7,427 7,468 7,448 LIABILITIESPayables

Suppliers 175 170 161 175 180 Projects 190 200 210 210 210 Other 85 85 85 85 85

Total payables 450 455 456 470 475 Provisions

Employee provisions 758 713 730 750 720 Total provisions 758 713 730 750 720 Total liabilities 1,208 1,168 1,186 1,220 1,195 Net assets 6,217 6,228 6,241 6,248 6,253 EQUITY*

Reserves 194 194 194 194 194 Retained earnings 6,023 6,034 6,047 6,054 6,059



151




reserve$'000 $'000 $'000



Surplus (def icit) for the period 11 - 11 Total comprehensive income 11 - 11

of w hich:Attributable to the Australian Government 11 - 11




152




2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Goods and services 52 20 20 20 20 Revenue from Government 18,161 18,287 18,761 19,116 19,476 Contributions 8,332 7,974 8,045 7,740 7,511 Interest 250 260 260 260 260 Other 200 460 700 800 840


Employees 2,224 2,360 2,525 2,649 2,832 Suppliers 918 1,434 1,685 1,781 1,875 Projects 22,764 23,384 23,124 22,878 23,182


operating activities 1,089 (177) 452 628 218 INVESTING ACTIVITIESCash used


Purchase of Intangibles 280 100 100 100 100 Total cash used 330 150 150 150 150 Net cash from (used by)

investing activities (330) (150) (150) (150) (150) FINANCING ACTIVITIESCash used

Other 324 - - - - Total cash used 324 - - - - Net cash from (used by)

financing activities (324) - - - - Net increase (decrease)

in cash held 435 (327) 302 478 68 Cash and cash equivalents at the



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

PURCHASE OF NON-FINANCIALASSETSFunded internally from




acquire assets 330 150 150 150 150 1. Includes the following source of funding:




property,plant and

equipment$'000 $'000 $'000

As at 1 July 2014Gross book value 212 5,256 5,468 Accumulated depreciation/amortisation (135) (4,437) (4,572) Opening net book balance 77 819 896 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – other 50 100 150 Total additions 50 100 150 Other movementsDepreciation/amortisation expense (50) (200) (250) Other (2) - (2) Total other movements (52) (200) (252) As at 30 June 2015Gross book value 262 5,356 5,618 Accumulated depreciation/amortisation (187) (4,637) (4,824) Closing net book balance 75 719 794


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GRAINSRESEARCH AND DEVELOPMENT CORPORATION





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GRDC Budget Statements

GRAINSRESEARCH AND DEVELOPMENT CORPORATION



The Grains Research and Development Corporation (GRDC) is a statutory authority established to invest in research and development (R&D) and related activities to benefit the Australian grains industry and the wider Australian community.

The GRDC invests in research, development and extension (RD&E) activities across a portfolio spanning temperate and tropical cereals, coarse grains, pulses and oilseeds. This involves coordinating and funding the activities; monitoring, evaluating and reporting on their impact; and facilitating the dissemination, adoption and commercialisation of their results.

The GRDC’s primary objective is to drive the discovery, development and delivery of world-class innovation to enhance the productivity, profitability and sustainability of Australian grain growers and benefit the industry and the wider community.

The GRDC does not undertake R&D itself. Rather, it relies on other organisations that have the necessary capabilities to undertake the specialised work. As an investor in RD&E, the GRDC often partners with co-funding organisations, many of which also provide RD&E services.

The GRDC also contributes to the development of strategic national approaches to grains industry RD&E, to reduce fragmentation and duplication, and to help address industry-wide issues such as biosecurity and climate change.

While its focus is on delivering benefits to Australian grain growers, the GRDC also generates outcomes from investing in RD&E that benefit other participants in the Australian grains industry value chain and the wider Australian community, as well as the research community in Australia and overseas.

Because effective delivery is critical to achieving benefits of R&D, the GRDC undertakes activities to raise awareness of grains industry R&D and extend the results of GRDC-supported projects to grain growers and their advisers, other participants in rural industry, and the wider community. Recognising

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different needs and preferences for receiving information, the GRDC uses a range of products and channels, from phone apps to field days.

The GRDC works closely with Australian grain growers and the Australian Government to ensure that their RD&E priorities are effectively addressed through GRDC investments. The GRDC also maintains strong connections with its other stakeholders, particularly in the R&D and agribusiness sectors.

Effective partnerships with other Australian organisations enable the GRDC to leverage resources and research capability; share market knowledge, technologies and intellectual property; and reduce the risk associated with particular investments. The GRDC also builds strong relationships with organisations overseas, both to broaden the resources available to the Australian grains industry and to access international RD&E efforts that offer potential benefits, such as food security, for Australia.

The GRDC’s Strategic R&D Plan 2012–17 provides a template to ensure that the GRDC will invest in RD&E in a sustainable manner, balancing long-term and short-term, high-risk and low-risk, and strategic and adaptive research needs, over the five years from July 2012 to June 2017.

The five-year strategy is informed by consultation with grain growers, representatives of Government and research partners, and other relevant stakeholders. It embraces the principles, strategies and implementation plan set out in the Grains Industry National Research, Development and Extension Strategy, and integrates them with the identified priorities of Australian grain growers and the Australian Government.

The GRDC’s Strategic R&D Plan 2012–17 also takes into account the priorities of other cross-sectoral research strategies in areas with relevance to the grains industry – for example, climate change; water use in agriculture; and biofuels and bioenergy.

The outcomes of the Strategic R&D Plan 2012–17 are delivered through six investment themes – meeting market requirements, improving crop yield, protecting your crop, advancing profitable farming systems, improving your farm resource base and building skills and capacity – supported by five corporate strategies, as detailed in the Outcome 1 strategy statement.

The Strategic R&D Plan sets out targets, intermediate outcomes and aspirational outcomes for each theme. These provide the framework for the GRDC’s annual operational plans and the annual investment process through which the GRDC refines its RD&E portfolio to respond to changes in the business environment and optimally address the priorities of its stakeholders.

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Table 1.1: CAC Act Body Grains Research and Development Corporation Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 206,581 - 206,581 219,644 REVENUE FROM GOVERNMENTSpecial appropriations1

Primary Industries Research and Development Act 1989,s. 30(3) – Grains and Wheat R&D Corporation - 174,735 174,735 183,095 Total special appropriations - 174,735 174,735 183,095



FUNDS FROM OTHER SOURCESInterest - 5,144 5,144 5,796 Royalties - 5,065 5,065 4,917 Grant income - 732 732 1,077 Other - 2,939 2,939 3,359 Total - 13,880 13,880 15,149

Total net resourcing for agency 206,581 188,615 395,196 417,888 1. The GRDC is not directly appropriated as it is a CAC Act body. Appropriations are made to the

Department of Agriculture which are then paid to the GRDC and are considered 'departmental' for all purposes.

2. The levies collected under the Primary Industries Levies and Charges Collection Act 1991 are remitted to the Department of Agriculture and transferred to the Consolidated Revenue Fund. An equivalent amount is paid by Department of Agriculture to the GRDC as a special appropriation under the Primary Industries Research and Development Act 1989 (PIRD Act).



1.3 BUDGET MEASURES

The GRDC does not have any 2014–15 Budget measures.

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Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.The GRDC’s single outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the GRDC in achieving Government outcomes.

Outcome 1: New information and products that enhance the productivity, competitiveness and environmental sustainability of Australian grain growers and benefit the industry and wider community, through planning, managing and implementing investments in grains research and development.

Outcome 1 StrategyOutcome 1 will be delivered through six RD&E investment themes set out in the Strategic R&D Plan 2012–17. The themes are underpinned by five key corporate strategies to drive performance and respond effectively to challenges and opportunities in the business environment:• Create value – deliver value by investing in programmes that address the

key industry priorities with the greatest potential returns.• Coordinate nationally – ensure that programmes are nationally

coordinated and the Australian grains industry has access to the RD&E infrastructure and capability that it needs for the future.

• Deliver regionally – deliver the outputs of research in innovative products and services relevant to growers and their advisers in each region.

• Connect globally – proactively source new technologies and innovation from around the world for the Australian grains industry.

• Engage with growers and industry – actively listen to and engage with growers and the broader grains industry.

Factors expected to influence the GRDC’s business environment in 2014–15 include:• New arrangements under the Primary Industries Research and

Development Act 1989.

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• Significant changes within the global grain market, including an increase in overseas demand for Australian grain and global food security issues.

• The Wheat Industry Advisory Taskforce’s review of wheat export marketing arrangements.

• The need to adapt to the requirements of private sector collaboration on ownership of intellectual property.

• Reduced farm profitability.• The increasing risk of grain production as input costs increase.• Climate variability, affecting on-farm decisions and requiring an increase

in innovative tools to forecast and manage risks.• Pressure on productivity growth rates.• Volatility in grain production, the exchange rate and grain prices.• Changing status of some GRDC R&D investment activities for

participation in the competitive grants system, which impacts on the leverage the GRDC is likely to achieve with Australian universities.

• Implementation of the Grains Industry National Research, Development and Extension Strategy.

The GRDC will work in consultation with grain growers, the Australian Government and other stakeholders, including research and commercialisation partners and other rural R&D corporations, to manage the effects of such factors.



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expenses$'000 $'000

Programme 1.1: Grains Research and Development CorporationRevenue from Government

Special appropriations 62,055 68,917 Revenues from industry sources 106,501 104,733 Revenues from other independent sources 15,936 13,710 Reserves - 25,740

Total for Programme 1.1 184,492 213,100 Outcome 1 Totals by resource typeRevenue from Government

Special appropriations 62,055 68,917 Revenues from industry sources 106,501 104,733 Revenues from other independent sources 15,936 13,710 Reserves - 25,740 Total expenses for Outcome 1 184,492 213,100


Outcome 1: New information and products that enhance the productivity, competitiveness and environmental sustainability of Australian grain growers and benefit the industry and w ider community, through planning, managing and implementing investments in grains

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Programme 1.1: Grains Research and Development Corporation

Programme ObjectiveDrive the discovery, development and delivery of world-class innovation to enhance the productivity, profitability and sustainability of Australian grain growers and benefit the industry and the wider community.



Grains Research and DevelopmentCorporation 184,492 213,100 203,793 194,010 204,753


Programme 1.1 DeliverablesEfficient and effective investment in grains RD&E based on robust business cases and stakeholder input that will address the research priorities of the Australian Government and Australian grain growers and deliver: improved grain quality and functionality knowledge that growers can use to select crop,

variety and cropping sequence to increase profit and manage risk; cereal, pulse and oilseed varieties with significantly increased yield potential and stability

over current elite varieties that growers can access and adapt to increase production; new genetic, biological, cultural and chemical weed, pest, and disease management tools

to reduce crop losses and minimise control costs for grain growers; effective biosecurity measures and science-based support for pesticide and genetic

technology stewardship; new information to help growers identify and understand the opportunities, risks and

potential impacts of key farming practices in each agroecological zone; integrated management of opportunities and constraints to increase profit and minimise

risk across seasons (strategic decisions) and within each season (tactical decisions); farm business plans providing the flexibility to respond to the risks and opportunities of a

changing and variable climate; new information to assist growers to improve soil health and reduce soil, nutrient and

chemical losses; improved biodiversity management on farm for profit; a skilled agricultural advisory extension sector, and world-class RD&E personnel, with the

appropriate skills to meet current and future needs of the Australian grains industry; and support for training to facilitate acquisition of skills and knowledge for use in the grains

industry.

Programme 1.1 Key Performance Indicators

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2013–14 2014–15 2015–16 2016–17 2017–18Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Australian Export Grains Innovation Centre (AEGIC) joint venture is established and operating appropriately.

AEGIC established

and operating.

Required market

information available.

Maintain programme

target.

Maintain programme

target.

n.a.

Grow ers are interested in the benefits of measuring grain quality to meet customer requirements.

90% Maintain programme

target.

Maintain programme

target.

Maintain programme

target.

n.a.

Grow ers storing grain on-farm use sealed silos to meet market requirements and provide for the continued effectiveness of pest control measures.

60% 65% 70% 70% n.a.

New cereal, pulse and oilseed varieties have minimum increases in genetic yield potential per annum as measured in National Variety Trials (NVT).

Cereals 1% Pulses 2%

Oilseeds 1.5%.

Maintain programme

target.

Maintain programme

target.

Maintain programme

target.

n.a.

New varieties currently available meet the expectations of grow ers.


target.

Maintain programme

target.

Maintain programme

target.

n.a.

Grow ers and advisers use NVT data in selection of varieties to plant.

30% access data, of

w hich 90% consider

35% and 90%

35% and 90%

40% and 90%

n.a.

Grow ers and advisers are aw are of and use integrated w eed, pest or disease management practices.

60% aw are,

45% use.

70% aw are,

50% use.

Maintain programme

target.

Maintain programme

target.

n.a.

Grow ers undertake on-farm practices to maintain or improve their biosecurity.

20% 30% 40% 50% n.a.

Grow ers place a high importance on the use of decision tools to assist them w ith strategic or tactical decision-making.


target.

Maintain programme

target.

Maintain programme

target.

n.a.

Grow ers have a w hole-farm business plan w hich takes account of strategic opportunities,


target.

Maintain programme

target.

Maintain programme

target.

n.a.

Grow ers consider the potential ef fects of climate change on their farm business w hen making long-term decisions.

45% 50% 55% 60% n.a.


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Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Grow ers undertake activities to improve the condition and productive capacity of their soils.

65% 70% Maintain programme

target.

Maintain programme

target.

n.a.

Grow ers use nutrient budgeting to better match application w ith anticipated crop needs.

55% 55% 60% 65% n.a.

Each year Nuff ield scholars include people from the grains

At least 3. At least 3. At least 3. At least 3. n.a.

Grow ers and advisers undertake at least one activity each year to learn more about opportunities to improve farm profit or

70% 70% 75% 75% n.a.

n.a. = not available1. No KPIs have been developed for forward year 3, 2017–18. This will be the first year of the new five-year

plan for 2017–22. All current key performance indicators that are extended into 2017–18 will maintain ongoing programme targets.

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3.1.1 Movement of Administered Funds Between YearsThe GRDC does not have any administered funds.

3.1.2 Special AccountsThe GRDC does not have any Special Accounts.

3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous statement is not applicable because the GRDC has no Indigenous specific expenses.

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3.2.1 Differences in Agency Resourcing and Financial StatementsThe financial statements are prepared on an accrual basis where revenues and expenses are recognised as and when the resources are received and used. The agency resourcing table recognises cash resources available to be used during the period and includes amounts recognised as revenue in previous periods.

3.2.2 Analysis of Budgeted Financial StatementsBudgeted Comprehensive Income Statement

The GRDC’s revenue is primarily from industry contributions in the form of levies paid on the farm gate value of grain sold and Commonwealth contributions which are determined at 0.5 per cent of the three year rolling average of gross value of production (GVP). GRDC’s revenue streams are therefore subject to the volatility of local and international grain commodity markets, farm gate costs, and the marketing decisions of growers. This means the assumptions in developing financial forecasts have a high degree of uncertainty and change frequently.

In 2013–14 the GRDC is estimating an operating surplus of $14.8 million. This is primarily due to higher than expected industry contributions.

In 2014–15 the GRDC is budgeting for an operating deficit of $25.7 million which will be funded from its own accumulated reserves. Industry contributions are expected to fall by $10.3 million primarily due to a decrease in grain production. Commonwealth Contributions are expected to increase by $2.1 million and own source income is expected to decrease by $3.5 million due to the gain on sale of investments recognised in 2013–14 and lower grants and other income. Supplier expenses are expected to increase by $27.4 million due to increased R&D expenditure in 2014–15.

Budgeted Balance Sheet

The estimated actual net asset position for 2013–14 is $195.4 million which reflects a higher than expected operating surplus.

The budgeted net asset position for 2014–15 is $169.7 million which is $25.7 million less than the estimated actual for 2013–14. This decrease is due to the budgeted operating deficit for 2014–15.

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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 10,118 11,100 11,488 11,890 12,307 Supplier expenses 171,637 199,062 189,398 179,742 190,094 Depreciation and amortisation 487 938 907 878 852 Write-dow n and impairment of assets 2,250 2,000 2,000 1,500 1,500 Total expenses 184,492 213,100 203,793 194,010 204,753 LESS: OWN-SOURCE INCOMEOwn-source revenueInterest 5,796 5,144 4,997 5,154 5,679 Grant income 1,077 732 340 - - Royalties 4,917 5,065 5,217 5,373 5,534 Other 3,709 2,769 3,189 3,030 2,950 Total own-source revenue 15,499 13,710 13,743 13,557 14,163 GainsGain on sale of investments 1,716 - - - - Total gains 1,716 - - - - Total own-source income 17,215 13,710 13,743 13,557 14,163 Net cost of (contribution by)


Commonw ealth contributions 67,032 68,917 69,669 70,191 73,484 Industry contributions 115,043 104,733 107,098 114,635 121,140 Total revenue from Government 182,075 173,650 176,767 184,826 194,624 Surplus (Deficit) attributable to the

Australian Government 14,798 (25,740) (13,283) 4,373 4,034 Total comprehensive income (loss) 14,798 (25,740) (13,283) 4,373 4,034 Total comprehensive income (loss)

attributable to theAustralian Government 14,798 (25,740) (13,283) 4,373 4,034



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Cash and cash equivalents 49,190 34,337 26,952 30,521 18,070 Trade and other receivables 29,976 28,721 28,059 28,017 30,919 Investments 157,391 147,391 137,391 132,391 147,391 Investments accounted for under

the equity method 3,299 4,699 5,599 6,499 7,699 Other investments 8,517 11,217 13,517 15,817 15,817


Land and buildings 5,508 5,312 5,116 4,920 4,724 Property, plant and equipment 5,422 5,060 4,734 4,441 4,177 Intangibles 521 541 556 567 575 Other non-financial assets 367 367 367 367 367


Suppliers 62,305 65,449 63,328 60,154 62,269 Total payables 62,305 65,449 63,328 60,154 62,269 Provisions

Employee provisions 2,123 2,173 2,223 2,273 2,323 Other provisions 350 350 350 350 350

Total provisions 2,473 2,523 2,573 2,623 2,673 Total liabilities 64,778 67,972 65,901 62,777 64,942 Net assets 195,413 169,673 156,390 160,763 164,797 EQUITY*

Reserves 114,513 108,113 102,113 105,613 109,913 Retained earnings 80,900 61,560 54,277 55,150 54,884



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Retained Asset Other Totalearnings revaluation reserves equity

reserve$'000 $'000 $'000 $'000


previous period 80,900 3,913 110,600 195,413 Adjusted opening balance 80,900 3,913 110,600 195,413 Comprehensive income

Surplus (def icit) for the period (25,740) - - (25,740) Total comprehensive income (25,740) - - (25,740)

of w hich:Attributable to the Australian Government (25,740) - - (25,740)

Transfers betw een equitycomponents 6,400 - (6,400) -

Estimated closing balanceas at 30 June 2015 61,560 3,913 104,200 169,673

Closing balance attributable to the Australian Government 61,560 3,913 104,200 169,673


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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Industry contributions 115,065 104,733 107,098 114,635 121,140 Revenue from Government 68,030 70,172 70,331 70,233 70,583 Interest 5,796 5,144 4,997 5,154 5,679 Grant income 1,077 732 340 - - Net GST received 17,164 19,906 18,940 17,974 19,009 Other 8,276 7,834 8,406 8,403 8,484


Employees 9,968 11,050 11,438 11,840 12,257 Suppliers 209,186 215,824 210,459 200,890 206,989


operating activities (3,746) (18,353) (11,785) 3,669 5,649 INVESTING ACTIVITIESCash received

Investments 2,179 10,000 10,000 5,000 5,000 Total cash received 2,179 10,000 10,000 5,000 5,000 Cash used

Purchase of property, plant and equipment 5,040 400 400 400 400

Investments 16,456 6,100 5,200 4,700 22,700 Total cash used 21,496 6,500 5,600 5,100 23,100 Net cash from (used by)

investing activities (19,317) 3,500 4,400 (100) (18,100) Net increase (decrease)

in cash held (23,063) (14,853) (7,385) 3,569 (12,451) Cash and cash equivalents at the



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

PURCHASE OF NON-FINANCIALASSETSFunded internally from

departmental resources1 5,390 400 400 400 400 TOTAL 5,390 400 400 400 400 RECONCILIATION OF CASH


Total purchases 5,040 400 400 400 400 plus provision for makegood 350 - - - - Total cash used to acquire assets 5,390 400 400 400 400

1. Includes the following source of funding:– internally developed assets



property,plant and

equipment$'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 1,000 4,900 5,703 1,889 13,492 Accumulated

and impairment - (392) (281) (1,368) (2,041) Opening net book balance 1,000 4,508 5,422 521 11,451 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – other - - 200 200 400 Total additions - - 200 200 400 Other movementsDepreciation/amortisation expense - (196) (562) (180) (938) Total other movements - (196) (562) (180) (938) As at 30 June 2015Gross book value 1,000 4,900 5,903 2,089 13,892 Accumulated

and impairment - (588) (843) (1,548) (2,979) Closing net book balance 1,000 4,312 5,060 541 10,913


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RURAL INDUSTRIESRESEARCH AND DEVELOPMENT CORPORATION





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RURAL INDUSTRIESRESEARCH AND DEVELOPMENT CORPORATION



The Rural Industries Research and Development Corporation (RIRDC) increases the competitiveness, productivity and sustainability of Australian agriculture by investing in research, development and extension (RD&E). The RIRDC addresses national rural issues that impact across rural industries and invests in productivity and technology innovation for our industry levy payers and identifies new plants and animals, which have the potential to become significant agricultural industries in Australia.

The RIRDC is the lead RD&E Corporation for investment that addresses cross-sectoral national issues that impact on the competitiveness of all rural industries. These issues affect all rural industries and their communities including trade policy, foreign investment, skills, resource competition and the urban/rural divide.

The profitability, productivity and sustainability of the RIRDC’s portfolio industries remains the RIRDC’s core business. The RIRDC will continue to work closely with its industry levy stakeholders from the rice, chickenmeat, honeybee and small animal industries to deliver outcomes through RD&E which advance their industries. The RIRDC will also continue to support a number of small, prospective industries for Australia.

A major initiative for the RIRDC in 2014–15 will be its continued leadership of a proposal for a new Cooperative Research Centre (CRC) for Agricultural Development in Northern Australia. This proposal is supported by the Western Australian, Northern Territory, and Queensland Governments, the Commonwealth Scientific and Industrial Research Organisation, the RIRDC and the northern universities and will attract significant private sector investment. If the bid is successful the CRC will commence operations in mid 2015.

The RIRDC will continue to participate, and lead where appropriate in strategies under the National RD&E Framework. The RIRDC hosts the secretariats for the Climate Change Research Strategy for Primary Industries and the Bioenergy Strategy. RIRDC also manages the collaboration in Primary Industries Health and Safety.

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Skills, leadership and capacity remain important commitments for the RIRDC. The Rural Women's Award increased participation in the capacity building and networking opportunities of the Award by 60 per cent, connecting with a larger number of rural women. The RIRDC Horizon Scholarship programme which assists young people to transition to university will grow by an additional sixteen scholars and the RIRDC will continue to support the Australian Broadcasting Corporation’s (ABC’s) Heywire youth programme. The purpose of Heywire is to give young rural and regional people the skills to be heard, not just on the ABC, but also in their communities and nationwide, and it is open to young people aged 16 to 22. RIRDC also continues to support the Australian Rural Leadership Foundation Rural Leaders Programme which supports established leaders in rural Australia.

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RIRDC Budget Statements



Table 1.1: CAC Act body Rural Industries Research and Development Corporation Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 13,846 - 13,846 13,510 REVENUE FROM GOVERNMENT

Payments from related entities1

Amounts from the portfolio department - 9,449 9,449 11,319 Total - 9,449 9,449 11,319


Primary Industries Research and Development Act 1989, s. 30(3) – Rural Industries R&D Corporation - 7,250 7,250 9,133 Total special appropriations - 7,250 7,250 9,133



FUNDS FROM OTHER SOURCESInterest - 600 600 600 Royalties - 220 220 220 Industry contributions - 2,264 2,264 2,154 Other - 293 293 600 Total - 3,377 3,377 3,574

Total net resourcing for agency 13,846 20,076 33,922 37,536 1. Appropriation Bill (No. 1) 2014–15.2. The RIRDC is not directly appropriated as it is a CAC Act body. Appropriations are made to the

Department of Agriculture which are then paid to the RIRDC and are considered 'departmental' for all purposes.

3. The levies are imposed by the Primary Industries (Excise) Levies Act 1999. The levies are collected by Department of Agriculture under the Primary Industries Levies and Charges Collection Act 1991 and are transferred to the CRF. An equivalent amount is paid by Department of Agriculture to the RIRDC as a special appropriation under the Primary Industries Research and Development Act 1989 (PIRD Act).



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1.3 BUDGET MEASURES

The RIRDC does not have any 2014–15 Budget measures.

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Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the RIRDC in achieving Government outcomes.

Outcome 1: Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development ingovernment-industry partnership.

Outcome 1 StrategyThe RIRDC’s Outcome 1 strategy is to invest in RD&E to respond to key drivers which have been identified by the Australian Government and industry stakeholders as follows:

Promote leadership and innovation in the rural sector:

• deliver analysis on issues of national importance to the rural sector and the broader community;

• assess the feasibility, value and potential competitiveness of new plant and animal industry opportunities; and

• encourage research that fosters science and industry creativity.

Increase profit and productivity in rural industries:

• manage demand driven RD&E that meets industry needs;• facilitate investments which deliver economic, social and environmental

benefits for rural industries; and• adopt a life-cycle approach to the investment in new, developing and

established industries.

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Enhance sustainability across the rural sector:

• work collaboratively on cross-sector issues which impact across industries;

• increase knowledge about rural industry options which offer regional economic development opportunities;

• encourage the sustainable use and management of natural resources; and

• promote leadership, capacity, skills and pathways which create opportunities.

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expenses$'000 $'000

Programme 1.1: Rural Industries Research and Development CorporationRevenue from Government

Ordinary annual services 11,319 9,449 Special appropriations 8,733 7,250

Revenues from industry sources 2,264 2,259 Revenues from other independent sources 1,420 1,113

Total for Programme 1.1 23,736 20,071 Outcome 1 Totals by resource typeRevenue from Government

Ordinary annual services 11,319 9,449 Special appropriations 8,733 7,250

Revenues from industry sources 2,264 2,259 Revenues from other independent sources 1,420 1,113 Total expenses for Outcome 1 23,736 20,071


Outcome 1: Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development in government-industry partnership.

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Programme 1.1: Rural Industries Research and Development Corporation

Programme ObjectiveIncreased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development in government-industry partnership.



Rural Industries Research and Development Corporation 23,736 20,071 18,761 18,986 19,224


Programme 1.1 DeliverablesUnder the framework of the Corporate Plan, the RIRDC will deliver outcomes through three lines of investment which are:

Promote leadership and innovation in the rural sector

Invest in research targeting current and emerging national rural issues to inform and improve policy debate by the Government and industry on issues relevant to agricultural and rural policy in Australia.

Undertake research that addresses impediments and opportunities to Australian agriculture that have arisen as a result of the global economy, including trade policy, agricultural productivity, and food security.

Enhance the global competitiveness of Australia’s agricultural sector through initiatives such as the modelling of the impacts of free trade agreements, analyzing the differences in agricultural productivity growth between Australia and its competitors, comparing the competitiveness of Australian agriculture with its competitors and reaffirming the benefits of supporting a free trade agenda.

Support Australia’s negotiations in multilateral trade agreements through the analysis of challenging issues such as tariff quotas and special safeguards.

Introduction of foresighting studies to identify new and emerging issues likely to impact on future productivity and competitiveness of rural industries.

Invest in animal and plant industries which are new to Australia and have the potential to boost productivity, offer diversification options to farmers and expand domestic and export market opportunities.

Develop a consortium to support a bid for a new CRC for Northern Australia which is targeted at premium food and agricultural produce which can grow export markets into Asia.


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Programme 1.1 Deliverables (continued)

Increase profit and productivity in rural industries

Maintain and add further case studies to “Biomass Producer”, the new communications and extension initiative for the farming community to raise their awareness about the risks and opportunities of feedstock production for Bioenergy.

Implement the new animal industries RD&E five-year plan, and conduct RD&E for new and developing animal industries that contribute to the profitability, sustainability and productivity of regional Australia.

Support roll-out of the step-by-step framework, ‘Managing Indigenous Pastoral Lands’, across northern Australia.

Continue breeding programme for working dogs using genomic technologies to reduce the cost of wastage, and improve behavioral and health traits.

Evaluate strategies for improving the welfare of chickens during grow-out and transportation.

Review measures that can be taken which reduce biosecurity risks posed by wild birds to meat chickens.

Determine the viability of a net energy system of feed formulation for meat chickens. Optimise whole grain feeding strategies for improved performance of meat chicken

production. Evaluate a new technology for diagnosing important poultry disease agents. Invest to resolve the identity of the key factors that impact on sorghum starch digestibility

for meat chickens. Improve the National Bee Pest Surveillance Programme to increase the likelihood of

intercepting an incursion of Asian honey bees that could harm the Australian beekeeping industry and industries reliant on honeybees.

Complete a national survey of pathogens in Australian honeybees to assist the re-opening of export markets for live bees; development of a code of practice that will specify best practice disease and pest management; and release a website known as ‘BeeAware’.

Increase productivity and profits for the ginger industry by investment in a code of practice.

Continue to work with the Thoroughbred horse industry in the expectation of the introduction of an R&D levy and conclude research including into an adenoviral vector vaccine, macrocyclic lactone resistance and injury prevention in young racehorses.

Determine the safety and efficacy of essential oils and plant extracts for cosmetic and animal health end uses.

Determine key agronomic parameters for new, developing and maturing plant-based industries (e.g. integrated pest management, varietal selection, biosecurity management, irrigation scheduling, nutritional requirements etc).

Establish two genetic orchards of Kakadu Plum to enable assessment of variability across a Northern Australian collection.


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Increase profit and productivity in rural industries (continued)

Support the increased productivity and sustainability of the rice industry through development of more profitable varieties of rice, researching solutions to pests and diseases, implementing precision agriculture methods, examining the development and feasibility of new products like biodegradable polymer sheeting, and investigating the potential of rice production in the Ord.

Support the increased productivity and sustainability of the pasture seeds industry through development of new varieties, working with the Australian Seeds Federation to implement Best Practice Guidelines, to partner with the Pasture Renewal Initiative, and to continue to trial the effectiveness of fertilizers and varieties.

Increase productivity in fodder through improved oated hay and vetch varieties for hay and silage.

Increase productivity through investment in the New and Developing Plant Industries by supporting product development for plant extracts to be used in the cosmetic industry, gluten and allergen free foods, exotic tropical fruit, and crop diversification options for farmers. Some industries that will be supported are guar, quinoa, native grasses, dates, wild rice, truffles, hazelnuts, carob, coffee and teff.

Enhance sustainability across the rural sector

Complete regional scale projects that focus on productivity, competitiveness and structural change issues as they impact on rural industries and their supporting communities. Completion of existing Wet Tropics and North West Tasmania projects and new Riverina study.

Support Horizon Scholarships in 2014 with sponsors from research and development corporations (RDCs), Government and the private sector.

Sponsor Course 21 of the Australian Rural Leadership Programme and ABC Heywire 2014.

Deliver the 2014 Australian RIRDC Rural Women's Award, seek applicants for the 2015 Award and maintain the Alumni network.

Complete RD&E investments made under the Dynamic Rural Communities Research and Development Plan, 2009–14, which address transformation of rural communities.

Invest in RD&E to drive sustainable improvements to work health and safety outcomes for all those working in the primary industries, including agriculture, fishing and forestry.

Continue implementation of the National Primary Industries RD&E Framework Strategies for Climate Change, New and Emerging Industries, Biofuels and Bioenergy and Chickenmeat.


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Enhance sustainability across the rural sector (continued)

Promote collaboration on climate research through the Climate Change Research Strategy for Primary Industries and support more accurate climate forecasts through the Managing Climate Variability programme.

Publish guidelines and provide other tools to help meat chicken producers evaluate the commercial viability of a solar installation on their farm.

Manage the National Hendra Virus Research Programme on behalf of the Australian, New South Wales and Queensland governments and the horse industry: models to predict Hendra virus prevalence in flying-fox populations; a national flying-fox monitoring programme; techniques for early detection and improved diagnostics and therapeutics for Hendra virus infections in horses; and recommendations to authorities to support decisions to reduce the risk of Hendra virus transmission to horses and humans.

Complete research to identify an effective response to myrtle rust for the native foods, tea tree oil, essential oils, plant extracts and wildflowers industries.

Continue to support research into on ground risk mitigation measures that will assist farmers to withstand cyclonic winds.

Support the development of a rice extension network. Launch an online diversification knowledge hub to assist existing primary producers and

new entrants about opportunities in new, developing and established plant and animal industries.

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Programme 1.1 Key Performance IndicatorsThe RIRDC evaluates its key performance indicators for research and development against the following: Sector five-year research and development plans are meeting their objectives to provide

the knowledge:- for diversification in Australia’s rural industries;- to increase the profitability, resilience and sustainability of the RIRDC’s established

industries; and- to address national rural issues and to meet the needs of industry, community and

Government. Demonstrating high level of support from industry, Government stakeholders and

partners through regular stakeholder surveys and continuing investment and co-investment.

Implementation of a revised strategy for the RIRDC’s knowledge investments leading to:- adoption of new technologies and industries;- adoption of knowledge to increase profitability;- resilience and sustainability of the RIRDC’s established industries; and- adoption of knowledge to address national rural issues demonstrated by client

surveys and programme elevations.2013–14 2014–15 2015–16 2016–17 2017–18

Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3Improved delivery effectiveness including in access to the information provided to industry, evidenced by new delivery mechanisms and stakeholder satisfaction w ith access. Level of satisfaction of stakeholders

90% 90% 90% 90% 90%

Sector f ive year research and development plans are meeting their objectives.

85% 85% 85% 85% 85%

Evaluate projects, programs and portfolios to show a strongly positive return on investment.

3:1 3:1 3:1 3:1 3:1

The RIRDC's RD&E investments address the Government's National and Rural Research Priorities, priorities of industry partners, and optimise partnerships w ith other research agencies.

95% 95% 95% 95% 95%

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3.1.1 Movement of Administered Funds Between YearsThe RIRDC does not have any administered funds.3.1.2 Special AccountsThe RIRDC does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure (AGIE)

Table 3.1.1: Australian Government Indigenous ExpenditureOther Total

Bill No. 1 Bill No. 2 Special Total Programme$'000 $'000 $'000 $'000 $'000 $'000

Rural Industries Research & Development CorporationOutcome 1Departmental 2014–15 - - - - 125 125 1.1Departmental 2013–14 - - - - 200 200 1.1Total outcome 2014–15 - - - - 125 125 Total outcome 2013–14 - - - - 200 200

Total departmental 2014–15 - - - - 125 125 Total departmental 2013–14 - - - - 200 200

Total AGIE 2014–15 - - - - 125 125 Total AGIE 2013–14 - - - - 200 200

Appropriation

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3.2.1 Differences in Agency Resourcing and Financial StatementsThe financial statements are prepared on an accrual basis where revenues and expenses are recognised as and when the resources are received and used. The agency resourcing table recognises the cash resources available to be used during the period and includes amounts recognised as revenue in previous periods.

3.2.2 Analysis of Budgeted Financial StatementsThe RIRDC is budgeting to break even in 2014–15.

The RIRDC’s balance sheet remains strong with estimated total assets of $16.6 million in 2014–15 and in the forward years. Of the total assets, approximately $13.8 million is represented by cash.

Payables to R&D providers and suppliers are the main liabilities in the balance sheet representing $1.6 million of the total $2.6 million expected in the budget and forward years. Employee entitlement liabilities are estimated at $0.9 million over the same period.

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3.2.3 Budgeted Financial Statements Tables

Table 3.2.1 Comprehensive Income Statement (showing net cost of services) (for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 3,918 3,591 3,493 3,654 3,654 Supplier expenses 3,331 2,841 2,602 2,613 2,613 Grants 16,307 13,459 12,486 12,539 12,777 Depreciation and amortisation 180 180 180 180 180 Total expenses 23,736 20,071 18,761 18,986 19,224 LESS: OWN-SOURCE INCOMEOwn-source revenueIndustry contributions 2,264 2,259 2,129 2,129 2,129 Interest 600 600 600 600 600 Royalties 220 220 220 220 220 Other 600 293 293 293 293 Total own-source revenue 3,684 3,372 3,242 3,242 3,242 Total own-source income 3,684 3,372 3,242 3,242 3,242 Net cost of (contribution by)


Commonw ealth contribution 14,748 12,663 11,871 12,096 12,334 Industry contribution 5,304 4,036 3,648 3,648 3,648

Total revenue from Government 20,052 16,699 15,519 15,744 15,982 Surplus (Deficit) attributable to the

Australian Government - - - - - Total comprehensive income (loss) - - - - - Total comprehensive income (loss)

attributable to theAustralian Government - - - - -



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Cash and cash equivalents 3,846 3,786 3,806 3,826 3,846 Trade and other receivables 2,290 2,285 2,285 2,285 2,285 Investments – Deposits 10,000 10,000 10,000 10,000 10,000


Property, plant and equipment 234 281 261 241 221 Intangibles 175 193 193 193 193 Other 21 21 21 21 21

Total non-financial assets 430 495 475 455 435 Total assets 16,566 16,566 16,566 16,566 16,566 LIABILITIESPayables

Suppliers 645 645 645 645 645 Grants 941 941 941 941 941 Other 43 43 43 43 43


Employee provisions 916 916 916 916 916 Other 61 61 61 61 61

Total provisions 977 977 977 977 977 Total liabilities 2,606 2,606 2,606 2,606 2,606 Net assets 13,960 13,960 13,960 13,960 13,960 EQUITY*Parent entity interest

Reserves 474 474 474 474 474 Retained surplus 13,486 13,486 13,486 13,486 13,486



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reserve$'000 $'000 $'000



Surplus (def icit) for the period - - - Total comprehensive income - - -

of w hich:Attributable to the Australian Government - - -




189




2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Revenue from Government 20,452 16,699 15,519 15,744 15,982 Interest 600 600 600 600 600 Net GST received 1,963 1,630 1,509 1,515 1,539 Other 2,974 2,777 2,642 2,642 2,642


Employees 3,897 3,591 3,493 3,654 3,654 Suppliers 3,658 3,125 2,862 2,874 2,874 Grants 17,938 14,805 13,735 13,793 14,055


operating activities 496 185 180 180 180 INVESTING ACTIVITIESCash used



investing activities (160) (245) (160) (160) (160) Net increase (decrease)

in cash held 336 (60) 20 20 20 Cash and cash equivalents at the



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acquire assets 160 245 160 160 160 1. Includes the following sources of funding:

– annual and prior year appropriations– internally developed assets.

Consistent with information contained in the Statement of Asset Movements and the Budgeted Departmental Statement of Cash Flows.


property,plant and

equipment$'000 $'000 $'000

As at 1 July 2014Gross book value 601 515 1,116 Accumulated depreciation/amortisation

and impairment (367) (340) (707) Opening net book balance 234 175 409 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – Government funding 167 78 245 Total additions 167 78 245 Other movementsDepreciation/amortisation expense (120) (60) (180) Total other movements (120) (60) (180) As at 30 June 2015Gross book value 768 593 1,361 Accumulated depreciation/amortisation

and impairment (487) (400) (887) Closing net book balance 281 193 474


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AUSTRALIAN FISHERIES MANAGEMENT AUTHORITY





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AUSTRALIAN FISHERIES MANAGEMENT AUTHORITY



The Australian Fisheries Management Authority (AFMA) was established under the Fisheries Administration Act 1991 (FAA) to manage Australia’s Commonwealth fisheries on behalf of the Australian community using the provisions of the Fisheries Management Act 1991 (FMA).

The AFMA Commission is responsible for exercising the AFMA’s domestic fisheries management functions and powers under the FAA and FMA. The Chief Executive Officer is responsible for assisting the Commission, including giving effect to its decisions and is a Commissioner. The Chief Executive Officer is also responsible for exercising the AFMA’s foreign compliance functions and powers and for the AFMA’s financial and human resources management under the Financial Management and Accountability Act 1997 and the Public Service Act 1999. Those roles are expected to remain under the Public Governance and Performance Accountability Act 2013 commencing on 1 July 2014.

The AFMA’s legislated functions and objectives provide for the implementation of efficient and cost effective fisheries management consistent with the principles of ecologically sustainable development, including the precautionary principle, and maximising the net economic returns to the Australian community from the management of Australian fisheries. The AFMA is to have regard to the impact of fishing on non-target species and the long-term sustainability of the marine environment.

In support of the objectives, the AFMA’s work concentrates on providing fisheries management arrangements, compliance programmes, licensing services and developing operational policies and regulations based on understanding and monitoring Australian marine living resources potentially affected by Commonwealth fisheries.

The AFMA undertakes its foreign compliance functions through participation in the Australian Government’s civil maritime surveillance and response programme and outreach activities providing advice and training in neighbouring countries. The AFMA’s role includes fisheries enforcement, planning, training and vessel disposal activities. The activities protect Commonwealth and State-managed fisheries from illegal foreign fishing and contribute to managing wider border security issues including biosecurity.

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The AFMA also provides fisheries management services for the Protected Zone Joint Authority (PZJA) under the Torres Strait Fisheries Act 1984 (TSFA). Decisions under this legislation are made by the PZJA which comprises of the Commonwealth as Chair and the Torres Strait Regional Authority and Queensland Government as other members. The key objectives of the TSFA are to acknowledge and protect the traditional way of life and livelihood of traditional inhabitants, including their rights in relation to traditional fishing and to protect and preserve the marine environment and Indigenous fauna and flora in and in the vicinity of the Protected Zone.

When developing and implementing fisheries management arrangements, the AFMA works in partnership with the public and key stakeholders, including commercial fishing operators, Indigenous interests, the prescribed peak industry body, sectoral industry associations, recreational/charter fishing representatives, researchers, environment/conservation organisations and others with an interest in Commonwealth fisheries management. The AFMA engages with stakeholder groups through management advisory committees, resource assessment groups, working groups, liaison meetings, port visits, electronic newsletters and direct mail to concession holders in Commonwealth fisheries. These partnership arrangements are especially important as the AFMA continues to engage stakeholders so they can more actively manage fisheries to ensure their ecological sustainability and to assume more responsibility for managing fisheries to ensure their sustainability. In accordance with legislation The AFMA consults the public on the development of fishery and amendments to management plans, and is expanding its communications with stakeholders through contemporary digital, web and social media.

In managing Commonwealth fisheries, the AFMA applies the Australian Government’s cost recovery policy through the Cost Recovery Impact Statement (CRIS) 2010. The commercial fishing industry pays for costs directly attributed to and recoverable from the fishing industry while the Government pays for foreign compliance and activities that benefit the broader community. The CRIS is scheduled for review in accord with the Government’s guidelines from 2014–15.

To fulfil these and other functions, the AFMA commissions and places a high importance on scientific and economic research to inform its decision-making.

The AFMA’s focus over the current and forecast period is on:

• managing Commonwealth fisheries in-line with the Commonwealth Harvest Strategy Policy and Guidelines that facilitate sustainable and profitable fisheries;

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AFMA Budget Statements

• preventing unacceptable impacts of Commonwealth fisheries on marine ecosystems and organisms by assessing risk and applying ecological risk assessment and ecological risk management frameworks and managing all fisheries in line with Commonwealth policy on fisheries bycatch;

• improving the efficiency and cost effectiveness of fisheries administration by streamlining business processes, and reducing red tape and unnecessary regulatory requirements;

• increasing opportunities for co-management1 of fisheries;

• deterring illegal fishing in Commonwealth fisheries through targeted enforcement based on compliance risk assessments and available resources;

• deterring and preventing illegal foreign fishing in the Australian Fishing Zone and adjoining regions by providing the fisheries focus in the Australian Government border protection arrangements, prosecuting offences, disposing of forfeited boats, gear and catches, and engaging in capacity building programmes and cooperative monitoring, control and surveillance activities with regional countries; and

• effective engagement with the community and other stakeholders to improve communications and increase public awareness and accessibility of fishery management information.

1. Fisheries co-management is an arrangement in which responsibilities and obligations for sustainable fisheries management are negotiated, shared and potentially delegated between Government, fishers and other stakeholders where appropriate.

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Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: Australian Fisheries Management Authority Resource Statement— Budget Estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000

Ordinary annual servicesDepartmental appropriation

Prior year departmental appropriation - - - - Departmental appropriation1 - 21,199 21,199 23,219 s. 31 Relevant agency receipts2 3,104 3,104 3,093 Total - 24,303 24,303 26,312

Administered expensesOutcome 1 - 5,309 5,309 4,075 Total - 5,309 5,309 4,075

Total ordinary annual services A - 29,612 29,612 30,387

Special AccountsOpening balance3 13,959 - 13,959 16,299 Appropriation receipts - 20,729 20,729 23,065 Non-appropriation receipts to Special Accounts - 17,104 17,104 15,329

Total Special Accounts B 13,959 37,833 51,792 54,693 Total resourcing (A+B) 13,959 67,445 81,404 85,080 Less appropriations draw n fromannual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through annual appropriations - (20,729) (20,729) (23,065) Total net resourcing for AFMA 13,959 46,716 60,675 62,015

1. Appropriation Bill (No.1) 2014–15 includes an amount of $0.5 million in 2014–15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

2. s. 31 relevant agency receipts – estimate.3. Estimated opening balance for Special Accounts (less ‘Special Public Money’ held in Services for Other

Entities and Trust Monies Special accounts (SOETM)). For further information on Special Accounts see Table 3.1.2.


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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the AFMA are detailed in Budget Paper No. 2, Budget Measures 2014–15 and are summarised below.

Table 1.2: Australian Fisheries Management Authority 2014–15 Budget MeasuresPart 1: Measures announced since the 2013–14 MYEFO

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Expense measures Efficiency Dividend – a further temporary increase of 0.25 per cent 1.1

Administered expenses - - - - - Departmental expenses - (53) (106) (158) (160)

Total - (53) (106) (158) (160)

Total Expense measuresAdministered - - - - - Departmental - (53) (106) (158) (160)

Total - (53) (106) (158) (160)

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Capital measures Efficiency Dividend – a further temporary increase of 0.25 per cent 1.1


Total - (1) (2) (4) (4)

Total Capital measuresAdministered - - - - - Departmental - (1) (2) (4) (4)

Total - (1) (2) (4) (4)

Programme

Programme


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Part 2: MYEFO Measures not Previously Reported in a Portfolio Statement2013–14 2014–15 2015–16 2016–17 2017–18

$'000 $'000 $'000 $'000 $'000Expense measures Efficiency Dividend – temporary increase in the rate1 1.1

Administered expenses - - - - -

Departmental expenses - (212) (478) (749) (207) Total - (212) (478) (749) (207)

Public Service Efficiencies2 1.1Administered expenses - - - - -

Departmental expenses (5) (27) (59) (82) - Total (5) (27) (59) (82) - Reforms to the APS management and efficient procurement of agency softw are1 1.1

Administered expenses - - - - -

Departmental expenses (22) (22) (22) - - Total (22) (22) (22) - -

Total Expense measuresAdministered - - - - - Departmental (27) (261) (559) (831) (207)

Total (27) (261) (559) (831) (207)

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Capital measures

Efficiency Dividend – temporary increase in the rate1 1.1


Total - (5) (11) (17) (5)

Total Capital measuresAdministered - - - - - Departmental - (5) (11) (17) (5)

Total - (5) (11) (17) (5)

Programme

Programme

1. This measure was published in the Economic Statement – August 2013.2. The lead agency for the 'Public Service Efficiencies' measure is the Department of Finance. The full

measure description and package details appeared in the 2013–14 Budget Paper No. 2 but has not previously been reported in a portfolio statement.

Prepared on a Government Financial Statistics (fiscal) basis.

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Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the AFMA in achieving Government outcomes.

Outcome 1: Ecologically sustainable and economically efficient Commonwealth fisheries, through understanding and monitoring Australia’s marine living resources and regulating and monitoring commercial fishing, including domestic licensing and deterrence of illegal foreign fishing.

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Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Ecologically sustainable and economically 2013–14 2014–15efficient Commonwealth fisheries, through understanding Estimated Estimatedand monitoring Australia’s marine living resources and actual expensesregulating and monitoring commercial fishing, including expensesdomestic licensing and deterrence of illegal foreign fishing. $'000 $'000Program 1.1: Australian Fisheries Management AuthorityAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 4,075 5,309 Departmental expenses

Departmental appropriation 1 28,158 23,833 Special accounts 12,236 14,000

Expenses not requiring appropriation in the budget year 2 1,810 1,895 Total for Program 1.1 46,279 45,037

Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 4,075 5,309 Departmental expenses

Departmental appropriation 1 28,158 23,833 Special accounts 12,236 14,000

Expenses not requiring appropriation in the budget year 2 1,810 1,895 Total expenses for Outcome 1 46,279 45,037



2. ‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation expense and amortisation expense for both departmental and administered items.

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

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Programme 1.1: Australian Fisheries Management Authority

Programme ObjectiveTo sustainably manage Commonwealth fisheries and deter illegal fishing.

Programme Expenses The AFMA’s expenditure on domestic fisheries management is a combination of cost

recovered and Government funded activities. This expenditure, including the departmental appropriation, is managed through the AFMA Special Account.

Administered expenditure is for the caretaking and disposal of illegal foreign fishing vessels. Expenses not requiring appropriation represent the depreciation of disposal facilities (administered assets).

2013–14 2014–15 2015–16 2016–17 2017–18Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000Annual administered expenses:

Ordinary Annual Services (Appropriation Bill No. 1) 4,075 5,309 5,408 5,392 5,499

Annual departmental expenses:Departmental appropriation1 28,158 23,833 23,669 23,661 23,936

Special Account expenses: AFMA Special Account 12,236 14,000 14,420 14,853 15,299

Expenses not requiring appropriation inthe budget year2 1,810 1,895 1,895 1,929 1,929

Total Programme expenses 46,279 45,037 45,392 45,835 46,663 1. Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue

from independent sources (s. 31)'.2. ‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation expense and

amortisation expense for both departmental and administered items.

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Programme 1.1 DeliverablesThe AFMA aims to improve the long term sustainable catch of target species through:

regularly assessing the status of target species; and applying Commonwealth Harvest Strategy Policy, which defines targets for pursuing

precautionary and economically efficient catch levels.The AFMA pursues ecological sustainability by:

applying the Commonwealth Bycatch Policy, which seeks to reduce or minimise interactions with non-target species;

conducting risk based compliance programmes to deter illegal fishing in AFMA managed fisheries;

conducting ecological risk assessments and putting in place management responses for species considered at risk from fishing activity; and

supporting the fishing industry to meet the requirements of the Environment Protection and Biodiversity Conservation Act 1999.

The AFMA seeks to maximise the net economic returns to the Australian community from Commonwealth fisheries by:

increasing the number of fisheries and/or species with specific targets for maximum economic yield, where it is cost effective to do so.

The AFMA aims to deter and prevent illegal foreign fishing in the Australian Fishing Zone and thereby minimise its impact on Australian fisheries resources by:

providing the fisheries focus within the Australian Government Civil Maritime Surveillance and Response Programme; and

carrying out capacity building projects and cooperative enforcement operations to improve the sustainability of fish resources in neighbouring countries.


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Programme 1.1 Deliverables (continued)2013–14 2014–15 2015–16 2016–17 2017–18Revised Budget Forw ard Forw ard Forw ard

Deliverables Budget year 1 year 2 year 3Complete research projects including Torres Strait Fisheries.1

Minimum of 10.

Minimum of 10.

Minimum of 10.

Minimum of 5.

Minimum of 5.

Complete f ishery independent surveys.

10 10 10 5 5

Number of f isheries regulated under plans of management, including Torres Strait Fisheries.

12 13 13 13 13

Number of harvest strategies applied to regulated fisheries.

11 11 11 11 11

Complete licensing transactions:a) manual 400 200 200 200 200b) automated. 2500 2700 2700 2700 2700Amount of levies collected. Greater

than 99% of levies

collected.

Greater than 99% of levies

collected.


collected.


collected.


collected.Prosecute illegal foreign f ishers. Note2 Note2 Note2 Note2 Note2

Dispose of illegal foreign f ishing vessels.

Note2 Note2 Note2 Note2 Note2

Capacity building programmes in regional countries.

4 4 4 4 4

Evidence of suspected illegal foreign fishing vessels forw arded to regional

100% of cases.

100% of cases.

100% of cases.

100% of cases.

100% of cases.

Forfeited vessels disposed of.3 100% 100% 100% 100% 100%Review annual domestic compliance risk assessment.

100% 100% 100% 100% 100%

Administered: Illegal foreign fishing vessel caretaking and disposal

1 Includes only research projects that the AFMA contracts with the research provider. It does not include research projects administered by other agencies in which the AFMA co-invests.

2. Performance cannot be forecast reliably. Actual results will be included in the AFMA Annual Report.3. Expressed as a proportion of forfeited vessels brought to AFMA-commissioned caretaking and disposal

facilities. The actual numbers depend on the number apprehended and brought to the disposal facilities through the Civil Maritime Surveillance and Response Programme and cannot be forecast reliably.

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Programme 1.1 Key Performance IndicatorsThe Commonwealth Harvest Strategy Policy and associated guidelines provide a framework to maintain key commercial fishery stocks at ecologically sustainable levels and maximise net economic returns through fisheries management and applying a precautionary approach.

2013–14 2014–15 2015–16 2016–17 2017–18Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators Budget year 1 year 2 year 3

a) Maximise the number of key commercial stocks w ith harvest strategy targets based on maximum economic yield (MEY) or the best available proxy.2

19 19 20 20 20

b) Improve the number of stocks in (a) assessed as being on target.

13 13 16 17 18

c) For those stocks in (a) that are assessed as not on target, improve the number that are heading tow ards their target reference point.

6 6 4 3 2

Number of f ish stocks subject to overfishing.3

0 0 0 0 0

Minimise the number of species assessed as remaining at high risk after mitigation.4

69 66 64 50 40

Maximise the disposal of apprehended foreign illegal, unregulated and unreported (IUU) vessels and suspected illegal entry vessels (SIEVs).

100% 100% 100% 100% 100%

Treatments targets for all priority domestic compliance risks met.

90% 90% 90% 90% 90%

For economically significant stocks:1

1. Please note that not all Commonwealth fish stocks can be managed by MEY, for example, those managed under international regional bodies.

2. Where higher and lower value species are caught together, different targets for the lower value species may maximise net economic returns overall.

3. In AFMA managed fisheries, not including jointly and internationally managed fisheries.4. Ecological Risk Assessments for Commonwealth managed fisheries and sub-fisheries have been

completed covering almost 1200 species. Species considered to be potentially at high risk are the subject of mitigation measures and further assessment. This may mean that projections of numbers of high risk species may vary from year to year.

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Section 3: Explanatory Tables and Budgeted Financial StatementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014–15 Budget year. It explains how Budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, Special Accounts and Government Indigenous expenditure.


3.1.1 Movement of Administered Funds Between YearsThe AFMA does not have any movement of administered funds.

3.1.2 Special AccountsSpecial Accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the AFMA.

Table 3.1.1: Estimates of Special Account Flows and BalancesOpening Closingbalance Receipts Payments Adjustments balance

2014–15 2014–15 2014–15 2014–15 2014–152013–14 2013–14 2013–14 2013–14 2013–14

Outcome $'000 $'000 $'000 $'000 $'000AFMA Special Account (D)1 1 13,959 37,833 37,833 13,959

16,299 38,394 40,734 - 13,959

AFMA Services for Other Entitiesand Trust Monies Special 218 - - - 218 Account (A) 1 218 - - - 218

Total Special Accounts 2014–15 Budget estimate 14,177 37,833 37,833 - 14,177

Total Special Accounts2013–14 estimated actual 16,517 38,394 40,734 - 14,177

1. The AFMA Special Account was established as at 1 July 2008 under s. 94B of the Fisheries Administration Act 1991. The Act also includes a crediting right provision to provide an equivalent amount to the AFMA for its management levies and license fees that are banked to consolidated revenue.

(D) = Departmental(A) = Administered

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3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous statement is not applicable because the AFMA has no Indigenous specific expenditure.

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3.2.1 Analysis of Budgeted Financial StatementsThe AFMA expects to maintain a balanced Budget position over the forward years.The AFMA collects levies via regulations under the Fishing Levy Act 1991, in accordance with the Fisheries Management Act 1991, the Fisheries Administration Act 1991, Australian Government cost recovery policy AFMA’s CRIS.The AFMA will be reviewing its cost recovery in line with the Government’s requirements over the 2014–15 financial year, which may result in changes to future year estimates.Funding for depreciation and amortisation expenses have been attributed between Government and cost recovered activities in accordance with AFMA’s CRIS. From 2010–11 the Government introduced net cash appropriation arrangements. The cumulative effect of these arrangements will lead to the AFMA’s accumulated results equity declining over the forward years as depreciation and amortisation expenses are greater than equity appropriations. For the 2013–14 financial year, the AFMA has changed its internal process regarding levy collections. Levy revenue no longer flows through the AFMA’s Administered Special Account and now is receipted directly into the Departmental Special Account.Administered income reflects the fines imposed by the AFMA for domestic and international illegal fishing activities and the receipt of administered revenue for expenditure incurred.Administered expenditure reflects payments to the providers of illegal foreign fishing vessel caretaking and disposal services.

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3.2.2 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (showing net cost of services)(for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 22,561 22,937 23,657 24,400 24,473 Supplier expenses 17,867 14,930 14,466 14,148 14,796 Depreciation and amortisation 1,713 1,798 1,798 1,798 1,798 Total expenses 42,141 39,665 39,921 40,346 41,067 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 2,527 2,527 2,527 2,527 2,527 Rental income 566 577 588 600 612 Levies and license fees provided via

crediting right to Special Account 12,236 14,000 14,420 14,853 15,299 Other revenue 34 34 34 34 34 Total own-source revenue 15,363 17,138 17,569 18,014 18,472 Total own-source income 15,363 17,138 17,569 18,014 18,472 Net cost of (contribution by)

services 26,778 22,527 22,352 22,332 22,595 Revenue from Government 23,065 20,729 20,554 20,534 20,797

Surplus (Deficit) attributable to the Australian Government (3,713) (1,798) (1,798) (1,798) (1,798)

Total comprehensive income (loss) (3,713) (1,798) (1,798) (1,798) (1,798) Total comprehensive income (loss)

attributable to the Australian Government (3,713) (1,798) (1,798) (1,798) (1,798)

Note: Impact of net cash appropriation arrangements2013–14 2014–15 2015–16 2016–17 2017–18


(loss) excluding depreciation/amortisation expenses previously funded through revenue - - - - - appropriations.

less depreciation/amortisation expensespreviously funded through revenueappropriations1 1,713 1,798 1,798 1,798 1,798

Total comprehensive income (loss) – as per the statement ofcomprehensive income (3,713) (1,798) (1,798) (1,798) (1,798)

1. From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced appropriations. For information regarding Departmental Capital Budgets (DCBs), please refer to Table 3.2.5 Departmental Capital Budget Statement.


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Cash and cash equivalents 356 356 356 356 356 Trade and other receivables 14,271 14,271 14,271 14,271 13,889


Land and buildings 5,414 4,875 4,271 3,762 3,078 Property, plant and equipment 818 495 597 445 401 Intangibles 1,886 1,775 1,311 999 780 Other 758 758 758 758 758


Suppliers 1,470 1,384 1,027 767 767 Accrued expenses 2,554 2,507 2,409 2,409 2,409


Employee provisions 4,946 5,080 5,218 5,160 5,160 Total provisions 4,946 5,080 5,218 5,160 5,160 Total liabil ities 8,970 8,971 8,654 8,336 8,336 Net assets 14,533 13,559 12,910 12,255 10,926 EQUITY*Parent entity interest

Contributed equity 10,182 10,651 11,121 11,585 12,054 Reserves 4,543 4,543 4,543 4,543 4,543 Retained surplus

(accumulated deficit) (192) (1,635) (2,754) (3,873) (5,671) Total equity 14,533 13,559 12,910 12,255 10,926



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Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000


previous period (192) 4,543 10,181 14,532 Adjusted opening balance (192) 4,543 10,181 14,532 Comprehensive income

Surplus (def icit) for the period (1,798) - - (1,798) Total comprehensive income (1,798) - - (1,798)

of w hich:Attributable to the Australian Government (1,798) - - (1,798)

Transactions with ownersContributions by ow ners

Departmental Capital Budget (DCBs) 355 - 470 825 Sub-total transactions with owners 355 - 470 825 Estimated closing balance

as at 30 June 2015 (1,635) 4,543 10,651 13,559 Closing balance attributable to the

Australian Government (1,635) 4,543 10,651 13,559 Prepared on Australian Accounting Standards basis.

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Table 3.2.4: Budgeted Departmental Statement of Cash Flows(for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Goods and services 3,093 3,104 3,115 3,127 3,510 Appropriations 23,065 20,607 20,432 20,412 20,673 Net GST received 309 310 312 313 315 Other 14,236 14,000 14,420 14,853 15,299




operating activities 683 355 361 361 360 INVESTING ACTIVITIESCash used



investing activities (837) (825) (832) (825) (851) FINANCING ACTIVITIESCash received

Contributed equity 154 470 471 464 491 Total cash received 154 470 471 464 491 Net cash from (used by)

financing activities 154 470 471 464 491 Net increase (decrease)

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

beginning of the reporting period 356 356 356 356 356 Cash and cash equivalents at the

end of the reporting period 356 356 356 356 356 Prepared on Australian Accounting Standards basis.

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$'000 $'000 $'000 $'000 $'000CAPITAL APPROPRIATIONS

Capital budget – Bill 1 (DCB) 154 470 471 464 469 Total capital appropriations 154 470 471 464 469 Total new capital appropriationsrepresented by:

Purchase of non-financial assets 154 470 471 464 469 Total items 154 470 471 464 469 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation – DCB1 154 470 471 464 469 Funded internally from




acquire assets 837 825 832 825 851 1. Does not include annual finance lease costs. Includes purchase from current and previous years DCBs.2. Includes the following sources of funding:

– annual and prior year appropriations– internally developed assets– s. 31 relevant agency receipts– proceeds from the sale of assets– the AFMA Special Account under s. 94B of the Fisheries Administration Act 1991.


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property,plant and

equipment$'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 1,220 6,941 3,103 5,551 16,815 Accumulated depreciation/amortisation

and impairment - (2,747) (2,285) (3,665) (8,697) Opening net book balance 1,220 4,194 818 1,886 8,118 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – appropriation

annual services1 - 145 126 554 825 Total additions - 145 126 554 825 Other movementsDepreciation/amortisation - (684) (449) (665) (1,798) Total other movements - (684) (449) (665) (1,798) As at 30 June 2015Gross book value 1,220 7,086 3,229 6,105 17,640 Accumulated depreciation/amortisation

and impairment - (3,431) (2,734) (4,330) (10,495) Closing net book balance 1,220 3,655 495 1,775 7,145

1. "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No. 1) 2014–15 for depreciation/amortisation expenses, DCBs or other operational expenses.


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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSupplier expenses 4,075 5,309 5,408 5,392 5,499 Depreciation and amortisation 63 63 63 63 63

Total expenses administeredon behalf of Government 4,138 5,372 5,471 5,455 5,562

LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Sale of goods and rendering of services1 700 721 742 764 786

Total non-taxation revenue 700 721 742 764 786 Total own-source revenues

administered on behalf of Government 700 721 742 764 786

Total own-source income administered on behalf of Government 700 721 742 764 786

Net Cost of (contribution by)services 3,438 4,651 4,729 4,691 4,776

Surplus (Deficit) (3,438) (4,651) (4,729) (4,691) (4,776) Total comprehensive income (loss) (3,438) (4,651) (4,729) (4,691) (4,776)

1. This includes an estimated $0.7 million per annum collected on behalf of the Fisheries Research and Development Corporation, which is not claimed by the AFMA through the crediting right.


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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Receivables 222 222 222 222 222 Total financial assets 222 222 222 222 222 Non-financial assets

Land and buildings 567 504 441 378 315 Total non-financial assets 567 504 441 378 315 Total assets administered

on behalf of Government 789 726 663 600 537 LIABILITIESPayables

Suppliers 155 155 155 155 155 Total payables 155 155 155 155 155 Total liabilities administered

on behalf of Government 155 155 155 155 155 Net assets/(liabilities) 634 571 508 445 382


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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Sales of goods and rendering of services 698 721 742 764 786

Total cash received 698 721 742 764 786 Cash used

Suppliers 4,075 5,309 5,408 5,392 5,499 Total cash used 4,075 5,309 5,408 5,392 5,499 Net cash from (used by)

operating activities (3,377) (4,588) (4,666) (4,628) (4,713) Net increase (decrease) in

cash held (3,377) (4,588) (4,666) (4,628) (4,713) Cash and cash equivalents at

beginning of reporting period 2 - - - - Cash from Official Public Account for:

– Appropriations 4,075 5,309 5,408 5,392 5,499Cash to Official Public Account for:

– Special Accounts 700 721 742 764 786 Cash and cash equivalents at endof reporting period - - - - -


Table 3.2.10: Statement of Administered Asset Movements (2014–15)Buildings Total

$'000 $'000As at 1 July 2014Gross book value 837 837 Accumulated depreciation/amortisation and impairment (270) (270) Opening net book balance 567 567 Other movementsDepreciation/amortisation expense (63) (63) Total other movements (63) (63) As at 30 June 2015Gross book value 837 837 Accumulated depreciation/amortisation and impairment (333) (333) Closing net book balance 504 504


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AUSTRALIAN PESTICIDES AND VETERINARY MEDICINES AUTHORITY





217

AUSTRALIAN PESTICIDES AND VETERINARY MEDICINES AUTHORITY



The Australian Pesticides and Veterinary Medicines Authority (APVMA) is established under the Agricultural and Veterinary Chemicals (Administration) Act 1992 (Administration Act). The APVMA’s principal responsibilities are described in the Administration Act and the Agricultural and Veterinary Chemicals Code Act 1994.

The APVMA is the independent statutory authority responsible for registering pesticides and veterinary medicines and regulating them up to and including retail sale.

The APVMA is responsible for administering and managing the National Registration Scheme. The scheme sets out the regulatory framework for the management of pesticides and veterinary medicines in Australia. The APVMA carries out its work in partnership with state and territory governments and with the active involvement of other Australian Government agencies including the Office of Chemical Safety within the Department of Health and the Department of the Environment.

The APVMA uses robust risk assessment methods to scientifically evaluate new and existing pesticides and veterinary medicines to protect the health and safety of people, animals and the environment, and to support international trade. The APVMA aims to operate a system for regulating pesticides and veterinary medicines that is efficient, effective, open and transparent and gives opportunity for public input.

In 2010–11 the Australian Government announced funding for the APVMA of $8.8 million over four years to support reforms to the regulation of agricultural and veterinary (agvet) chemicals in Australia.

These reforms aim to improve the systems that protect human health and the environment and enhance the APVMA’s business and operational functions. This funding has also enabled the APVMA to upgrade its information and communications technology infrastructure.

The Better Regulation of Agvet Chemicals legislation has been passed by the Parliament, with an implementation date of 1 July 2014.

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The APVMA’s focus in the 2014–15 financial year will be bedding down the implementation of the legislation and embarking on a new program to reduce the administration and regulatory burden to industry.

220

APVMA Budget Statements



Table 1.1: Australian Pesticides and Veterinary Medicines Authority Resource Statement — Budget Estimates for 2014–15 as at Budget May 2014


year appropriation available in

2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000

Ordinary annual services1

Departmental appropriationPrior year departmental appropriation2 - - - 2,145

Departmental appropriation - 743 743 981

s. 31 Relevant agency receipts3 - 339 339 274 Total - 1,082 1,082 3,400

Total ordinary annual services A - 1,082 1,082 3,400 Total appropriations excluding

Special Accounts (A) - 1,082 1,082 3,400 Special Accounts

Opening balance4 18,698 - 18,698 20,104

Non-appropriation receipts5 - 29,620 29,620 28,927 Total Special Accounts B 18,698 29,620 48,318 49,031 Total resourcing (A+B) 18,698 30,702 49,400 52,431 Total net resourcing for the APVMA 18,698 30,702 49,400 52,431

1. Appropriation Bill (No. 1) 2014–15.2. Estimated adjusted balance carried forward from previous year.3. s. 31 relevant agency receipts – estimate.4. Estimated opening balance for Special Accounts. For further information on Special Accounts see

Table 3.1.1.5. Appropriation receipts from the APVMA annual and special appropriations for 2013–14 included above.


Third party payments from and on behalf of other agencies2014–15 2013–14

$'000 $'000Receipts received from other agencies for the provision of services

(disclosed above w ithin departmental section 31) 145 142 Total receipts received from other agencies 145 142

Payments made to other agencies for the provision of services(disclosed above) 3,229 2,850 Total payments made by other agencies 3,229 2,850

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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the APVMA are detailed in Budget Paper No. 2, Budget Measures 2014–15 and are summarised below.

Table 1.2: Australian Pesticides and Veterinary Medicines Authority 2014–15 Budget MeasuresPart 1: Measures announced since the 2013–14 MYEFO

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Expense measures

Efficiency Dividend – a further temporary increase of 0.25 per cent 1.1

Administered revenues - - - - - Departmental revenues - (2) (4) (5) (5)

Total - (2) (4) (5) (5)

Total Expense measuresAdministered - - - - - Departmental - (2) (4) (5) (5)

Total - (2) (4) (5) (5)

Programme

Part 2: MYEFO Measures not Previously Reported in a Portfolio Statement2013–14 2014–15 2015–16 2016–17 2017–18

$'000 $'000 $'000 $'000 $'000Expense measures

Efficiency Dividend – temporary increase in the rate1 1.1

Administered expenses - - - - - Departmental expenses - (8) (17) (25) -

Total - (8) (17) (25) - Reform to the APS management and efficient procurement of agency 1.1

Administered expenses - - - - - Departmental expenses - - - (39) (73)

Total - - - (39) (73) Total Expense measures


Total - (8) (17) (64) (73)

Programme

1. This measure was published in the Economic Statement – August 2013.

Prepared on a Government Finance Statistics (fiscal) basis.

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Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the APVMA in achieving Government outcomes.

Outcome 1: Protection of the health and safety of people, animals, the environment, and agricultural and livestock industries through regulation of pesticides and veterinary medicines.

Outcome 1 StrategyThe role of the APVMA is to independently evaluate the safety and performance of pesticides and veterinary medicines intended for sale, ensuring that the health and safety of people, animals and crops, the environment and trade are protected. All registered products must be shown to work and be safe for people and the environment. The use of registered products must also not unduly jeopardise Australia’s trade with other nations.

To ensure that only those products that meet the APVMA’s requirements are actually supplied, the APVMA monitors the market for compliance. The APVMA also reviews registered chemical products to ensure that they continue to meet contemporary standards.

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Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.



expenses$'000 $'000

Programme 1.1: Australian Pesticides and Veterinary Medicines AuthorityDepartmental expenses

Departmental appropriation1 1,219 1,045 Special Account

Australian Pesticides and Veterinary Medicines Special Account – s. 21, FMA Act [s. 58, Agricultural and Veterinary Chemicals (Administration) Act 1992 ] 29,593 29,993

Expenses not requiring appropriation in the budget year2 799 1,144 Total for Programme 1.1 31,611 32,182

Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation1 1,219 1,045 Special Account 29,593 29,993

Expenses not requiring appropriation in the budget year2 799 1,144 Total expenses for Outcome 1 31,611 32,182

2013–14 2014–15Average Staffing Level (number)3 165.8 176.0

Outcome 1: Protection of the health and safety of people, animals, the environment, and agricultural and livestock industries through regulation of pesticides and veterinary medicines.


2. ‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation and amortisation expense, makegood expense and audit fees.

3. Average Staffing Level numbers for 2014–15 include staff required to conduct the re-registration and re-approval scheme.

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

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Programme 1.1: Australian Pesticides and Veterinary Medicines Authority

Programme ObjectiveRegulate agvet chemicals to protect the health and safety of people, animals and crops, the environment and trade and support Australian primary industries.



Departmental appropriation1 1,219 1,045 1,039 1,006 950 Special Account 29,593 29,993 31,206 31,875 32,675

Expenses not requiring appropriation inthe Budget year2 799 1,144 1,163 1,186 1,213

Total Programme expenses 31,611 32,182 33,408 34,067 34,838 1. Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue

from independent sources (s. 31)’.2. ‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation and amortisation

expense, makegood expense and audit fees.

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Programme 1.1 DeliverablesThe APVMA delivers an efficient and effective system of regulation of pesticides and veterinary medicines, and will:

integrate Australian Government reforms into core business;

conduct robust, risk-based, scientific evaluations to support sound regulatory decisions;

identify and reconsider existing chemicals of regulatory concern;

identify and resolve non-compliance;

identify and manage emerging regulatory issues;

engage stakeholders to add value to our work;

conduct our business efficiently and effectively; and

enhance performance through our people.2013–14 2014–15 2015–16 2016–17 2017–18Revised Budget Forw ard Forw ard Forw ard

Deliverables Budget year 1 year 2 year 3

Determine product applications w ithin the statutory timeframe.

90% 90% n.a. n.a. n.a.

Determine active constituent applications w ithin the statutory timeframe.

60% 60% n.a. n.a. n.a.

Determine permit applications w ithin the statutory timeframe.

85% 85% n.a. n.a. n.a.

Determine product applications w ithin the statutory timeframe.

n.a. 100% 100% 100% 100%

Determine active constituent applications w ithin the statutory timeframe.

n.a. 100% 100% 100% 100%

Determine permit applications w ithin the statutory timeframe.

n.a. 100% 100% 100% 100%

Applications received under the current registration scheme

Applications received after the implementation of the Better Regulation of Agricultural and Veterinary Chemicals reform

n.a. = not available

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Key performance Revised Budget Forw ard Forw ard Forw ardindicators Budget year 1 year 2 year 3Adverse experience reports from the use of products according to the label leading to significant regulatory action.

<1% <1% <1% <1% <1%

Instances of signif icant regulatory action resulting from non-compliance w ith registration

6 6 6 6 6

Compliance w ith maximum residues limits in food commodities for pesticides and veterinary medicines (Australian National

99% 99% 99% 99% 99%

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Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014–15 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, Special Accounts and Government Indigenous expenditure.


3.1.1 Movement of Administered Funds Between YearsThe APVMA does not have any movement of administered funds.

3.1.2 Special AccountsSpecial Accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the APVMA.

Table 3.1.1: Estimates of Special Account Flows and BalancesOpening Closingbalance Receipts PaymentsAdjustments balance

2014–15 2014–15 2014–15 2014–15 2014–152013–14 2013–14 2013–14 2013–14 2013–14

Outcome $'000 $'000 $'000 $'000 $'000Australian Pesticides and Veterinary Medicines Authority Special Account – s. 58 Agricultural & Veterinary Chemicals (Administered) 18,698 29,620 30,529 - 17,789 Act 1992 20,104 28,927 30,333 - 18,698 - Total Special Accounts

2014–15 Budget estimate 18,698 29,620 30,529 - 17,789 - Total Special Accounts

2013–14 estimated actual 20,104 28,927 30,333 - 18,698

1

3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous statement is not applicable because the APVMA has no Indigenous specific expenses.

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3.2.1 Analysis of Budgeted Financial StatementsBudgeted Comprehensive Income StatementTotal expenditure in 2014–15 is budgeted to be $29.8 million, an increase of $2.3 million. As outlined in the APVMA’s Cost Recovery Impact Statement, this increase is largely due to the introduction of the re-registration and re-approval scheme as well as the increase in compliance and enforcement activities.As stated previously, the APVMA received $8.8 million in funding to support the implementation of the Better Regulation of Agvet Chemicals legislation. This funding was received from 2010–11 through to 2013–14. The $0.2 million received in 2013–14 was the final instalment of this funding.

Budgeted Balance Sheet

The APVMA’s forecast total asset position of $18.8 million at 30 June 2015 is $1.4 million lower than the estimated balance at 30 June 2014. The main reason for this decrease is the additional spending forecast for 2014–15 as the APVMA transactions to its post-reform state.

Total liabilities at 30 June 2015 are budgeted to increase slightly from the 30 June 2014 estimated balance, rising to $10.9 million from $10.7 million.

As the APVMA’s revenue can vary significantly from year-to-year as a result of fluctuations in agricultural and veterinary (agvet) chemical sales, the APVMA aims to maintain equity levels that allow revenue fluctuations to be managed.

The equity target is currently set at $7.0 million (approximately three months operating expenses). At 30 June 2015 the APVMA’s equity is estimated to be $7.9 million.

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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSES1

Employee benefits 21,163 21,063 22,111 22,552 23,065 Supplier expenses 9,685 10,012 10,172 10,368 10,600 Depreciation and amortisation 763 1,107 1,125 1,147 1,173 Total expenses 31,611 32,182 33,408 34,067 34,838 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 238 302 306 310 318 Levies, fee and charges provided viacrediting right to Special Account 27,306 29,496 32,331 33,022 33,848 Other 36 37 38 39 40 Total own-source revenue 27,580 29,835 32,675 33,371 34,206 Total own-source income 27,580 29,835 32,675 33,371 34,206 Net cost of (contribution by)

services 4,031 2,347 733 696 632 Revenue from Government 981 743 733 696 632 * * * *Surplus (Deficit) attributable to

the Australian Government (3,050) (1,604) - - - Total comprehensive income (loss) (3,050) (1,604) - - - Total comprehensive income (loss)

attributable to theAustralian Government (3,050) (1,604) - - -

Note: Impact of net cash appropriation arrangements2013–14 2014–15 2015–16 2016–17 2017–18


(loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations. (2,287) (497) 1,125 1,147 1,173

less depreciation/amortisation expensespreviously funded through revenueappropriations2 (763) (1,107) (1,125) (1,147) (1,173)

Total comprehensive income (loss) – as per the statement ofcomprehensive Income (3,050) (1,604) - - -

1. Expenses for 2014–15 and the forward estimates include the cost of conducting the re-registration and

re-approval scheme.2. From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

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231





Cash and cash equivalents 13,969 12,942 13,784 14,613 15,428 Trade and other receivables 264 270 277 284 291


Land and buildings 2,225 2,015 1,801 1,582 1,358 Property, plant and equipment 808 819 827 831 830 Intangibles 2,590 2,382 1,883 1,371 843 Other 345 345 345 345 345


Suppliers 3,183 3,263 3,345 3,429 3,514 Other 878 809 702 554 361


Employee provisions 6,240 6,396 6,556 6,720 6,888 Other 430 439 448 457 466

Total provisions 6,670 6,835 7,004 7,177 7,354 Total liabilities 10,731 10,907 11,051 11,160 11,229 Net assets 9,470 7,866 7,866 7,866 7,866 EQUITY*Parent entity interest

Contributed equity 373 373 373 373 373 Reserves 1,123 1,123 1,123 1,123 1,123 Retained surplus

(accumulated deficit) 7,974 6,370 6,370 6,370 6,370 Total equity 9,470 7,866 7,866 7,866 7,866



232



Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000


previous period 7,974 1,123 373 9,470 Adjusted opening balance 7,974 1,123 373 9,470 Comprehensive income

Surplus (deficit) for the period (1,604) - - (1,604)

Total comprehensive income (1,604) - - (1,604) of w hich:

Attributable to the Australian Government (1,604) - - (1,604)

Estimated closing balanceas at 30 June 2015 6,370 1,123 373 7,866

Closing balance attributable to the Australian Government 6,370 1,123 373 7,866


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2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Appropriations 1,626 743 733 696 632 Net GST received 1,031 1,074 1,097 1,122 1,152 Other 29,078 29,833 32,672 33,368 34,203




operating activities 124 (327) 1,262 1,249 1,235 INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 1,645 700 420 420 420

Total cash used 1,645 700 420 420 420 Net cash from (used by)

investing activities (1,645) (700) (420) (420) (420) Net increase (decrease)

in cash held (1,521) (1,027) 842 829 815 Cash and cash equivalents at the



234






departmental resources1 1,645 700 420 420 420 TOTAL 1,645 700 420 420 420 RECONCILIATION OF CASH


Total purchases 1,645 700 420 420 420 Total cash used to

acquire assets 1,645 700 420 420 420 1. Includes the following sources of funding:

– annual and prior year appropriations– donations and contributions– gifts– internally developed assets– s. 31 relevant agency receipts (for FMA agencies only)– proceeds from the sale of assets.


Table 3.2.6: Statement of Asset Movements (2014–15)Buildings Other Intangibles Total

property,plant and

equipment$'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 2,638 1,003 4,713 8,354 Accumulated depreciation/amortisation

and impairment (413) (195) (2,123) (2,731) Opening net book balance 2,225 808 2,590 5,623 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – other 25 205 470 700 Total additions 25 205 470 700 Other movementsDepreciation/amortisation expense (235) (194) (678) (1,107) Total other movements (235) (194) (678) (1,107) As at 30 June 2015Gross book value 2,663 1,208 5,183 9,054 Accumulated depreciation/amortisation

and impairment (648) (389) (2,801) (3,838) Closing net book balance 2,015 819 2,382 5,216


235




2013–14 2014–15 2015–16 2016–17 2017–18 $'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSupplier expenses - - - - -

Total expenses administeredon behalf of government - - - - -

LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Other taxes 28,806 29,496 32,331 33,022 33,848 Total taxation revenue 28,806 29,496 32,331 33,022 33,848 Total own-source revenues

administered on behalf of government 28,806 29,496 32,331 33,022 33,848

Total own-source incomeadministered on behalf of government 28,806 29,496 32,331 33,022 33,848

Net Cost of (contribution by)services (28,806) (29,496) (32,331) (33,022) (33,848)

Surplus (Deficit) 28,806 29,496 32,331 33,022 33,848 Total comprehensive income (loss) 28,806 29,496 32,331 33,022 33,848




2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 4,968 5,092 5,219 5,349 5,483 Total financial assets 4,968 5,092 5,219 5,349 5,483 Total assets administered

on behalf of Government 4,968 5,092 5,219 5,349 5,483 LIABILITIESPayables

Other 4,968 5,092 5,219 5,349 5,483 Total payables 4,968 5,092 5,219 5,349 5,483 Total liabilities administered

on behalf of Government 4,968 5,092 5,219 5,349 5,483 Net assets/(liabilities) - - - - -


236




2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Taxes 28,927 29,620 32,458 33,152 33,982 Total cash received 28,927 29,620 32,458 33,152 33,982 Net cash from (used by)

operating activities 28,927 29,620 32,458 33,152 33,982 Net increase (decrease) in

cash held 28,927 29,620 32,458 33,152 33,982 Cash and cash equivalents at

beginning of reporting period 4,847 4,968 5,092 5,219 5,349 Cash to Official Public Account for:

– Special Accounts 28,806 29,496 32,331 33,022 33,848

Cash and cash equivalents at endof reporting period 4,968 5,092 5,219 5,349 5,483


237

PORTFOLIO GLOSSARY

AAA Agriculture Advancing Australia.

AAWS Australian Animal Welfare Strategy.

ABARES Australian Bureau of Agricultural and Resource Economics and Sciences.

ABC Australian Broadcasting Corporation.

ABS Australian Bureau of Statistics.

Accrual accounting

System of accounting where items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Accumulated depreciation

The aggregate depreciation recorded for a particular depreciating asset.

Additional estimates

Where amounts appropriated at budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

Administered Revenues, expenses, assets or liabilities managed by agencies on behalf of the Commonwealth. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

AECL Australian Egg Corporation Limited.

AEGIC Australian Export Grains Innovation Centre.

AFMA Australian Fisheries Management Authority.

AGIE Australian Government Indigenous Expenditure.

Agvet Agricultural and veterinary.

AGWA Australian Grape and Wine Authority.

ALC Australian Landcare Council.

AMPC Australian Meat Processor Corporation.

237

Annual Appropriation

Two appropriation Bills are introduced into Parliament in May and comprise the Budget for the financial year beginning 1 July. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

APL Australian Pork Limited.

Appropriation An authorisation by Parliament to spend monies from the Consolidated Revenue Fund for a particular purpose.

APS Australian Public Service.

APVMA Australian Pesticides and Veterinary Medicines Authority.

AQUAVETPLAN Australian Aquatic Veterinary Emergency Plan.

ARLF Australian Rural Leadership Foundation.

AUSVETPLAN Australian Veterinary Emergency Plan.

AWI Australian Wool Innovation Limited.

AWO Australian Wine Overseas.

AWRI Australian Wine Research Institute.

CAC Act Commonwealth Authorities and Companies Act 1997.

Capital expenditure

Expenditure by an agency on capital projects, for example purchasing a building.

CFI Carbon Farming Initiative.

COAG Council of Australian Governments.

CRC Cooperative Research Centre.

CRDC Cotton Research and Development Corporation.

CRF Consolidated Revenue Fund. Section 81 of the Constitution stipulates that all revenue raised or money received by the Commonwealth forms the

238

Portfolio Glossary

one Consolidated Revenue Fund.

CRIS Cost Recovery Impact Statement.

CSIRO Commonwealth Scientific and Industrial Research Organisation.

DAL Dairy Australia Limited.

DCB Departmental Capital Budget.

Departmental Revenue, expenses, assets and liabilities that are controlled by the agency in providing its outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services and most employee expenses, supplier costs and other administrative expenses incurred.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time.

DHS Department of Human Services.

EC Exceptional Circumstances.

EMPPLAN Australian Emergency Marine Pest Plan.

EPPR Emergency Plant Pest Response.

Equity or net assets

Residual interest in the assets of an entity after deduction of its liabilities.

Expense Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

FAA Fisheries Administration Act 1991.

Fair value Valuation methodology: the amount for which an asset could be exchanged, or a liability settled, between knowledgeable and willing parties in an arm’s length transaction. The fair value can be affected by the conditions of the sale, market

239

Portfolio Glossary

conditions and the intentions of the asset holder.

FAO Food and Agriculture Organization of the United Nations.

FRDC Fisheries Research and Development Corporation.

FHA Farm Household Allowance.

FMA Fisheries Management Act 1991.

FMA Act Financial Management and Accountability Act 1997.

FWPA Forest and Wood Products Australia.

G20 The Group of Twenty Finance Ministers and Central Bank Governors.

GRDC Grains Research and Development Corporation.

GST Goods and Services Tax.

GVP Gross value of production.

GWRDC Grape and Wine Research and Development Corporation.

HAL Horticulture Australia Limited.

Intermediate outcomes

More specific medium-term impacts (for example, trend data, targets or milestones) below the level of the planned outcomes specified in the budget. A combination of several intermediate outcomes can at times be considered as a proxy for determining the achievement of outcomes or progress towards outcomes (see outcomes).

IRA Import Risk Analysis.

Items The level at which funds are appropriated from the consolidated revenue.

IUU Illegal, unregulated and unreported.

kg Kilogram.

KPI Key Performance Indicator.

240

Portfolio Glossary

Livecorp Australian Livestock Export Corporation.

MEY Maximum economic yield.

MLA Meat and Livestock Australia.

MoU Memorandum of Understanding.

MP Member of Parliament.

MYEFO Mid-year Economic and Fiscal Outlook.

n.a. Not available.

NEBRA National Environmental Biosecurity Response Agreement.

nfp Not for publication.

NLAC National Landcare Advisory Committee.

NLP National Landcare Programme.

NRM Natural Resource Management.

NVT National Variety Trials.

NWGIC National Wine and Grape Industry Centre.

ODA Official Development Assistance.

OIE World Organisation for Animal Health.

Operating result Equals revenue less expense.

Outcomes The Government’s objectives in each portfolio area. Outcomes are desired results, impacts or consequences for the Australian community as influenced by the actions of the Australian Government. Actual outcomes are assessments of the end-results or impacts actually achieved.

PAES Portfolio Additional Estimates Statements.

PB Statements Portfolio Budget Statements.

PHA Plant Health Australia

PIRD Act Primary Industries Research and Development Act

241

Portfolio Glossary

1989.

PISC Primary Industries Skills Council.

PLANTPLAN Australian Emergency Plant Pest Response Plan.

Programmes A logical aggregation of agency items for the provision of adequate information for key performance monitoring and measurement of deliverables.

PZJA Protected Zone Joint Authority.

R&D Research and Development.

RDC Research and Development Corporation.

RD&E Research, Development and Extension.

Revenue Total value of resources earned or received to cover the production of goods and services.

RFA Regional Forest Agreement.

RFCS Rural Financial Counselling Service.

RIRDC Rural Industries Research and Development Corporation.

RLF Regional Landcare Facilitator.

SA South Australia.

SFA Statutory Funding Agreement.

SIEVs Suspected illegal entry vessels.

SOETM Services for Other Entities and Trust Monies Special Account.

Special Account Balances existing within the Consolidated Revenue Fund (CRF) that are supported by standing appropriations (Financial Management and Accountability (FMA) Act 1997, subsection 20 and 21). Special Accounts allow money in the CRF to be acknowledged as set-aside (hypothecated) for a particular purpose. Amounts credited to a Special Account may only be spent for the purposes of the

242

Portfolio Glossary

Special Account. Special Accounts can only be established by a written determination of the Finance Minister (section 20 FMA Act) or through an Act of Parliament (referred to in section 21 of the FMA Act).

Special appropriations (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations the authority to withdraw funds from the Consolidated Revenue Fund does not generally cease at the end of the financial year.

Standing appropriations are a sub-category consisting of ongoing special appropriations— the amount appropriated will depend on circumstances specified in the legislation.

SRA Sugar Research Australia.

TEP Threatened, endangered and protected.

TFFP Transitional Farm Family Payment.

TSFA Torres Strait Fisheries Act 1984.

WA Western Australia.

WAC Wine Australia Corporation.

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