Department of Sustainability, Environment, Water, Population and CommunitiesAnnual Report 2012–13Address:

Main Office: John Gorton BuildingKing Edward Terrace, Parkes ACT 2600, Australia

Mail:

GPO Box 787Canberra ACT 2601, Australia

Internet: www.environment.gov.au

Phone: 02 6274 1111+61 2 6274 1111 (international)

Fax: 02 6274 1666+61 2 6274 1666 (international)

© Copyright Commonwealth of Australia, 2013

ISSN: 1441-9335

The Department of Sustainability, Environment, Water, Population and Communities Annual Report 2012–2013 is licensed by the Commonwealth of Australia for use under a Creative Commons By Attribution 3.0 Australia licence with the exception of the Coat of Arms of the Commonwealth of Australia, the logo of the agency responsible for publishing the report, content supplied by third parties, and any images depicting people.

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Environmental Credentials Statements

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ContentsExecutive summarySecretary’s review

Department overview, outcome and program structure

Portfolio overview

Summary of financial performance

Outcome 1: Biodiversity and ecosystemsPrograms 1.1–1.3

Outcome 2: Sustainable population and communities Programs 2.1 and 2.2

Outcome 3: Antarctica Program 3.1

Outcome 4: Sustainable water Program 4.1

Outcome 5: Environmental protection and heritage conservationPrograms 5.1 and 5.2

Outcome 6: Commonwealth environmental water Programs 6.1

Corporate Outcome: Organisational effectiveness Corporate governance

External scrutiny

Environmental sustainability and performance

Human rights

Human resources

Stakeholder relations

Procurement

Financial performance

Financial position

Spatial reporting

Legislation reporting Appendices Workforce profile

Work, health and safety

Grants programs

Advertising and marketing expenditure

Freedom of information

Corrections to material errors in the 2011–12 annual report

Global reporting initiative

Agency resource statement 2012–13

Expenses for outcomes

Financial statements Glossary List of requirements Index

Guide to the Annual ReportThe Department of Sustainability, Environment, Water, Population and Communities Annual Report 2012–13 has been prepared in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, as approved by the Joint Committee of Public Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999. This report is presented in six sections as outlined below.

Executive summaryThis section provides:

a review by the Secretary for 2012–13 an overview of portfolio structure a summary of the department’s financial performance.

Report on performance by outcomeThis section contains seven chapters that detail the department’s activities, achievements and performance during the year against the seven outcomes as set down in the Portfolio Budget Statements 2012–13. These outcomes are:

Outcome 1: Biodiversity and ecosystems Outcome 2: Sustainable population and communities Outcome 3: Antarctica Outcome 4: Sustainable water Outcome 5: Environmental protection and heritage conservation Outcome 6: Commonwealth environmental water Corporate Outcome: Organisational effectiveness.

Legislation reportingThis report details the operation of the nine Acts the department administers that do not report separately, focusing on how the statutory requirements of the Acts were met during the reporting year and how the Acts were administered. The Acts covered are:

Environment Protection and Biodiversity Conservation Act 1999 Natural Heritage Trust of Australia Act 1997 Product Stewardship Act 2011 Product Stewardship (Oil) Act 2000 Fuel Quality Standards Act 2000 Hazardous Waste (Regulation of Exports and Imports) Act 1989 Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 Water Efficiency Labelling and Standards Act 2005 Water Act 2007.

AppendicesAppendices include additional information on the department’s: workforce profile; work, health and safety; grants programs; advertising and marketing expenditure; freedom of information; corrections to material errors in the 2011–12 annual report; global reporting initiative; agency resources statement 2012–13 and expenses for outcomes.

Financial statementsThis section contains the department’s audited financial statements for the year ended 30 June 2013.

Glossary, list of requirements and indexA glossary of terms and acronyms, a list of requirements for locating mandatory and suggested information and an alphabetic index are included.

Other portfolio annual reportsThe portfolio provides separate annual reports for the following:

National Water Commission Director of National Parks Great Barrier Reef Marine Park Authority Supervising Scientist Bureau of Meteorology Murray–Darling Basin Authority Sydney Harbour Federation Trust.

EnquiriesEnquiries and feedback may be directed to:

Assistant Secretary, Communications and Ministerial Services BranchDepartment of the EnvironmentGPO Box 787 Canberra ACT 2601 Australia.

This annual report is available electronically at: www.environment.gov.au

Executive SummarySecretary’s ReviewOver the year 1 July 2012 to 30 June 2013 the department supported the delivery of several major government policy initiatives to promote the conservation and sustainable use of Australia’s natural resources. The department continued to deliver a diverse ongoing work program spanning environmental regulation, program delivery and scientific research. Internally, a major focus was placed on improving the efficiency and effectiveness of the department, including reducing staffing levels to meet government budget targets.

A major achievement in water reform was the passage into law of the Murray–Darling Basin Plan on 22 November 2012. After several years of intense stakeholder consultation, the plan seeks to balance the needs of communities and farmers with the need to sustain the ecological functioning of the Murray–Darling system. It sets sustainable limits for the use of water to ensure healthy rivers, strong communities and sustainable food and fibre production for current and future generations. In 2012–13 a record amount of 1272 gigalitres of Commonwealth environmental water was delivered across the Basin, helping to benefit its rivers, wetlands and floodplains.

In July 2012 four marine bioregional plans were finalised under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), aimed at helping improve how our oceans are managed. This was followed by the proclamation of the Commonwealth marine reserves network in November 2012.

As part of the broader national environmental regulation reform agenda, the department further progressed a ‘big-picture’ approach to environment and heritage protection through strategic assessments under the EPBC Act. This approach provides greater certainty for future investment by determining where development can occur, the type of development that will be allowed and the conditions under which it may proceed. Once strategic assessments are in place, individual developments can proceed without further need for assessment under the EPBC Act. For example, the strategic assessment of proposed urban development in Gungahlin, ACT undertaken in 2012, provided for the streamlined approval of six new suburbs with up to 13 000 homes.

The department continued to support substantial government investments in Australia’s unique biodiversity through the Caring for our Country and the Biodiversity Fund programs. These programs aim to achieve healthy, well-managed and resilient ecosystems in a changing climate. In December 2012 a Prospectus of Investment was released by the Minister for Sustainability, Environment, Water, Population and Communities. This first national biodiversity investment prospectus identified investment priorities across the Caring for our Country and Biodiversity Fund programs.

In regions and cities the department worked with state government agencies, local government and industry to implement the National Waste Policy, including making major inroads into the management of e-waste through the National Television and Computer Recycling Scheme.

Several of the department’s programs are delivered in partnership with Indigenous communities. A major highlight in May 2013 was the hosting of a conference in Darwin to establish the World Indigenous Network for land and sea managers. This fulfilled an Australian commitment from the Rio+20 United Nations Conference on Sustainable Development held in Brazil in June 2012.

In May 2013 the first Sustainable Australia Report was released. This report included a wide ranging set of environmental and economic indicators to track the nation’s progress over time. Development of the report was overseen by the National Sustainability Council, which was established in late 2012 and is supported by the department.

The department was active on the international stage in pursuing matters of importance to Australia. Among other priorities, the department coordinated the Australian Government’s negotiations for the Minamata Convention on Mercury, a critical step in managing this potent neurotoxin. The department also continued to lead the Southern Ocean Research Partnership and to promote non-lethal whale research in the Southern Ocean. In a world first, Australia joined forces with scientists from Chile, New Zealand, the United Kingdom and the United States to use acoustic technology to successfully find, track and study the Antarctic blue whale, the largest creature on Earth.

Outcome 1: Biodiversity and ecosystemsThrough the National Environmental Research Program (NERP) $20 million was invested in 2012–13 for environmental research. The research hubs established under the program worked collaboratively with the department to deliver world-class research to inform decision making and environmental policy. Examples include the rediscovery of a missing critically endangered frog species, input to the EPBC Act offsets calculator and approaches for monitoring (particularly biological data) with the oil and gas industry.

The department supported significant investments in natural resource management programs including through the Caring for our Country program. This included the declaration of eight new Indigenous Protected Areas during 2012–13, increasing the National Reserve System by almost 10 million hectares.

Under the Working on Country program, more than 690 Indigenous rangers were engaged during 2012–13 to undertake significant environmental management and heritage conservation activities.

The department delivered the first stream of the Regional Natural Resource Management (NRM) Planning for Climate Change Fund which will support the inclusion of climate change adaptation and mitigation strategies into regional NRM plans.

Through the Great Barrier Reef Rescue program $53.68 million was provided to assist land managers in Queensland adopt improved land management practices to reduce nutrients, pesticides and sediments entering the reef lagoon.

Australia participated in the 64th annual meeting of the International Whaling Commission in Panama in July 2012. The meeting was successful in advancing Australia’s conservation and governance reform objectives.

Bush Blitz, a joint program between the department and BHP Billiton, completed its survey schedule across selected National Reserve System properties. Since 2009, 650 new species have been discovered and recorded under this program.

Outcome 2: Sustainable population and communitiesThe landmark National Television and Computer Recycling Scheme completed a successful first year with more than 480 free television and computer collection services delivered around Australia. To date, five arrangements have been approved to administer the scheme with all liable parties meeting their obligations to join these arrangements. This is the first co-regulatory product stewardship scheme established under the Product Stewardship Act 2011.

The department delivered the Suburban Jobs Program, which involves the practical demonstration of place-centred policies to promote community sustainability. Following a competitive grant round, funding was awarded in 2012–13 to three successful Suburban Jobs program projects which were announced to support local employment opportunities. Funding will be provided to these projects over three years (from 2012–13 to 2014–15).

Outcome 3: AntarcticaThe Australian Antarctic science program undertook 61 science projects involving researchers from 36 Australian institutions together with 71 international institutions from 23 countries. Overall, 80 students (53 PhD candidates) were associated with this work.

Australia also continued to promote its position within the Antarctic Treaty system by active participation in its various elements. At the 36th Antarctic Treaty Consultative Meeting (ATCM) in Brussels in May 2013, Australia secured agreement to a multi-year strategic work plan for the ATCM, an Antarctic Clean-Up Manual, several revised protected area management plans and site-specific guidelines, and two new guidelines for sites frequently visited by tourists.

Outcome 4: Sustainable WaterIn addition to the Murray–Darling Basin Plan, the Intergovernmental Agreement between the Commonwealth and Basin states on Implementing Water Reform in the Murray–Darling Basin came into effect on 5 June 2013.

The Strengthening Basin Communities program invested in more than 57 projects across the Murray–Darling Basin enabling local government authorities and urban water providers to support projects that improve water security by reducing demand on potable water supplies.

A new Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development was established, advancing the delivery of independent scientific advice to facilitate robust regulation of the potential impacts of development on water resources. The department worked closely with the statutory committee providing secretariat support and technical advice to assist the committee to meet its responsibilities.

Through the National Water Security Plan for Cities and Towns $56 million was invested to upgrade older water systems, install new infrastructure and support practical projects that save water or reduce water losses. This delivered a combined capacity capable of yielding 25 gigalitres per year of potable water savings.

The department supported the investment of $566.6 million under the national Sustainable Rural Water Use and Infrastructure Program in projects promoting better rural water use, management and efficiency, including water knowledge and market reform.

The department worked with the South Australian government to designate Piccaninnie Ponds Karst Wetlands as Australia’s 65th Ramsar site.

Outcome 5: Environmental Protection and Heritage ConservationThe department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act in 2012–13.

There were six threatened ecological community listings in 2012–13 including the first ever marine ecological community, the Giant Kelp Marine Forests of South-East Australia. There are now 1756 species, 62 ecological communities and 20 key threatening processes listed under the EPBC Act.

The Your Community Heritage program provided $8.8 million (GST exclusive) to 232 projects to protect, conserve and enhance the values of significant historic heritage. The program supports communities to celebrate their local heritage and share the local stories and traditions that tell our national story. The Indigenous Heritage Program provided $4.9 million (GST exclusive) to 53 projects across Australia to support the identification, conservation and promotion of Indigenous heritage.

The 16th meeting of the Conference of the Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora was held in Bangkok, Thailand, in March 2013. Nine Australian species proposals were adopted including stronger protection for the freshwater sawfish. Five shark and two manta ray species were listed on Appendix II of the Convention.

The department participated in Operation CETUS, a national cetacean compliance operation aimed at protecting migrating whales from disturbance and to enforce whale approach limits. The operation involved 123 separate compliance and enforcement activities.

Outcome 6: Commonwealth environmental waterIn 2012–13 a total of 1272 gigalitres (79 per cent of the total volume available) of Commonwealth water was delivered to the environment in the Murray–Darling Basin. This improved water quality, connected rivers to floodplains, and helped maintain food chains and fish movement. Wetlands were filled benefitting native fish, birds and other native animals. The recovery of the environment following the drought was supported, building resilience in preparation for the next drought.

Corporate outcome: Organisational effectivenessWork continued in 2012–13 to strengthen the department’s corporate systems and business practices. The department has maintained a strong focus on building its capability in the areas of leadership, cross-divisional relationships, risk management and accountabilities, change management and broadening its approach to policy development.

In June 2013 the department’s revised Strategic Plan 2013–2017 was released. The strategic plan sets out the key priorities for the department and how its staff will work, and incorporates the department’s approach to embedding the three pillars of sustainability—economic, social and environmental—in its business.

The department has explored ways to improve organisational and administrative capability. In the online business environment, the department worked with the Department of Education Employment and Workplace Relations to implement a standard parliamentary workflow solution across government to deliver better management of parliamentary documents.

Redevelopment continues on the department’s website, the preeminent tool to communicate and engage with stakeholders. The rollout of a full electronic document record management system has commenced and will become fully operational in 2013–14.

The many achievements over the past year are the product of considerable work by a very committed team of professionals. The department is well served in its mission by committed and dedicated officers at all levels and across all divisions.

Dr Gordon de BrouwerSecretary

The Hon Greg Hunt MPMinister for the EnvironmentParliament HouseCANBERRA ACT 2600

Dear Minister

In accordance with relevant statutory requirements, I present you with the annual report for the Department of Sustainability, Environment, Water, Population and Communities and the Commonwealth Environmental Water Office for the financial year ended 30 June 2013. This also incorporates the annual report of the Natural Heritage Trust of Australia Act 1997.

Please note the annual report retains the department’s previous title to reflect the name during the reporting period. This is a factual account of the department’s activities during the period 1 July 2012 to 30 June 2013 under the previous Government and Secretary.

The report has been prepared in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, as approved by the Joint Committee of Public Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999. Subsection 63(1) of the Public Service Act 1999 requires you to lay a copy of this annual report before each House of the Parliament on or before 31 October 2013.I certify that this agency complies with the Commonwealth Fraud Control Guidelines.

Yours sincerely

[signed]Gordon de Brouwer10 October 2013

GPO Box 787 Canberra ACT 2601 • Telephone 02 6274 1111 • Facsimile 02 6274 1666 • www.environment.gov.au

Department overviewOur missionTo advance a sustainable Australia: our environment, water, heritage and communities.

Outcome and program structureOUTCOMES PROGRAMS

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

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

Program 1.2: Environmental Information and Research.

Program 1.3: Carbon Pollution Reduction – Land Sector Initiatives.

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

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

Program 2.2: Sustainable Communities.

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

Program 3.1: Antarctica: Science, Policy and Presence.

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

Program 4.1: Water Reform.

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

Program 5.1: Conservation of Australia’s Heritage and Environment.

Program 5.2: Environmental Regulation.

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

Program 6.1: Commonwealth Environmental Water.

Corporate Outcome: Organisational Effectiveness Improve the effectiveness and efficiency of our department.

Portfolio overviewSUSTAINABILITY, ENVIRONMENT, WATER, POPULATION AND COMMUNITIES PORTFOLIOTHE HON. TONY BURKE MPMINISTER FOR SUSTAINABILITY, ENVIRONMENT, WATER, POPULATION AND COMMUNITIES

THE HON. AMANDA RISHWORTH MP PARLIAMENTARY SECRETARY FOR SUSTAINABILITY AND URBAN WATER

DEPARTMENT OF SUSTAINABILITY, ENVIRONMENT, WATER, POPULATION AND COMMUNITIESPAUL GRIMES—SECRETARYMalcolm ThompsonDeputy Secretary

Kimberley DrippsDeputy Secretary

David ParkerDeputy Secretary

Corporate Outcome: Organisational effectiveness

Portfolio Statutory Authorities/Positions

Environmental Quality Division

First Assistant Secretary: Diana Wright

Environment Assessment and Compliance Division

First Assistant Secretary: Dean Knudson

Australian Antarctic Division

First Assistant Secretary: Tony Fleming

Corporate Strategies Division

First Assistant Secretary: Dianne Carlos

Bureau of Meteorology

Director: Rob Vertessy

Sustainability, Policy and Analysis Division

First Assistant Secretary: Mark Flanigan

Supervising Scientist Division

First Assistant Secretary: Alan Hughes

Commonwealth Environmental Water Office

First Assistant Secretary: David Papps

Policy and Communications Division

First Assistant Secretary: Stephen Oxley

Great Barrier Reef Marine Park Authority

Chief Executive Officer: Russell Reichelt

Biodiversity Conservation Division

First Assistant Secretary: Sean Sullivan

Wildlife, Heritage and Marine Division

First Assistant Secretary: Alex Rankin

Water Efficiency Division

First Assistant Secretary: Mary Harwood

Sydney Harbour Federation Trust

Executive Director: Geoff Bailey

Parks Australia Division

Director of National Parks: Peter Cochrane

Water Reform Division

First Assistant Secretary: Tony Slatyer

Murray–Darling Basin Authority

Chief Executive: Rhondda Dickson

International Executive: Donna Petrachenko

Office of Water Science

First Assistant Secretary: Suzy Nethercott-Watson

National Water Commission

Chief Executive Officer: James Cameron

Note: On 18 September 2013, a new Ministry and Government were sworn in by the Governor-General.

Financial summaryDuring the 2012–13 financial year, the department reported a departmental comprehensive loss of $14.56 million. This was primarily due to non-cash provisions for restoration obligations (make good) for the Australian Antarctic regions. The result is within the Minister for Finance and Deregulation’s approved operating loss.

Expenditure on activities administered by the department on behalf of the Government totalled $968.2 million during 2012–13. This expenditure related to grants, suppliers, and the write down and impairment of water assets (non cash). A comprehensive list of the grant expenditure by program is provided in the department’s 2012–13 financial statements at Note 18C.

The department managed administered assets on behalf of the Government of $2.99 billion. This is largely comprised of water entitlement assets of $1.87 billion, investments in two other portfolio entities of $561.5 million and a share of land and buildings, other property, plant and equipment in the River Murray Operations joint venture of $506.86 million.

The Australian National Audit Office has issued an unmodified audit opinion for the department’s 2012–13 financial statements.

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

Main responsibilities for this outcomeInvasive species policy, listing of key threatening processes and threat abatement planning.

Developing and implementing marine bioregional plans.

International terrestrial and marine conservation and management initiatives.

Sustainable fisheries assessments.

Fisheries Adjustment Assistance Package

Wildlife, Heritage and Marine Division

Promoting the science and information base of the department in the areas of environment research, information and reporting.

Administering the National Environmental Research Program.

National Plan for Environmental Information initiative.

Sustainability Policy and Analysis Division

Administering the Caring for our Country initiative.

National biodiversity and native vegetation policies.

Implementing Australia’s strategy for the National Reserve System 2009–2030.

Implementing Australia’s Biodiversity Conservation Strategy 2010–2030.

Implementing programs for the protection of the Great Barrier Reef.

Administering the Biodiversity Fund.

Implementing the Clean Energy Future Plan as part of the Land Sector Package.

Secretariat for the Land Sector Carbon and Biodiversity Board.

Administering the Regional Natural Resource Management Planning for Climate Change Fund (Stream 1).

Administering Indigenous Carbon Farming Fund.

National Wildlife Corridors Plan.

Implementing the Tasmanian Forests Intergovernmental Agreement.

Initial establishment of the World Indigenous Network.

Biodiversity Conservation Division

Establishing and managing Commonwealth marine reserves.

Managing the Australian Biological Resources Study.

Developing Australian Government policy on management of Australia’s genetic resources.

Parks Australia

Progressing the government’s anti-whaling agenda. Policy and Communications Division

ObjectivesWildlife, Heritage and Marine Division

Support efforts to prevent and abate threats to biodiversity. Contribute to effective environmental biosecurity for the nation. Assess individual Australian fisheries against the Guidelines for the Ecologically Sustainable

Management of Fisheries, 2nd Edition. Ensure that Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requirements

are taken into account in whole-of-government fisheries policy initiatives. Through the maintenance of marine bioregional plans, support strategic, consistent and informed

decision-making under Commonwealth environment legislation in relation to Commonwealth marine areas and provide a framework for strategic intervention and investment to address priority conservation values and pressures in the Commonwealth marine environment.

Sustainability Policy and Analysis Division The National Environmental Research Program (NERP) delivers public-focused environmental

research designed to engage with end users and support evidence-based decision making by environmental managers and policy makers.

Parks Australia Conserve Australia’s biodiversity within the Commonwealth reserve estate. Establish a national network of Commonwealth marine reserves representative of Australia’s 41

provincial marine bioregions and develop and implement management arrangements for the Commonwealth marine estate.

Support biodiversity conservation by building Australia’s taxonomic knowledge and capacity through the Australian Biological Resources Study.

Establish and manage a regulatory framework that maximises social, economic and environmental returns from investment of biodiscovery in Australia.

Biodiversity Conservation Division Through the Caring for our Country initiative, promote an environment that is healthy, better protected,

well managed and resilient and provides essential ecosystem services in a changing climate. Through the Land Sector Package (an element of the Clean Energy Future plan) assist the transition to

a lower carbon economy while improving the resilience of Australia’s landscapes to the impacts of climate change.

Contribute to the conservation of Australia’s biodiversity at the landscape scale, in particular, by facilitating the linking of landscapes through the establishment of wildlife corridors.

Contribute to the conservation of Australia’s biodiversity through the National Reserve System and Indigenous Protected Areas.

Promote the development of Indigenous capacity in managing land and sea country through the establishment of the World Indigenous Network.

Through the Tasmanian Forests Intergovernmental Agreement 2013, support the protection and ongoing management of additional areas of native forest with important conservation values.

Key achievements During 2012–13 there was solid progress under the National Environmental Research Program

(NERP), with research across 127 projects, funded mainly through five multi-institutional research hubs. During the year, 603 researchers supported through NERP produced 172 research articles, papers and notes printed in peer-reviewed research journals, books or other publications (86 per cent are now publicly available). Staff from the research institutions, the department and the broader portfolio are working closely to ensure that research addresses the priority information needs of the portfolio. Research highlights for 2012–13 include:

o NERP Environmental Decisions Hub researchers worked with departmental policy officers to deliver an EPBC Act offsets calculator—the first of its kind operating in the world.

o Researchers in the Tropical Ecosystems Hub continued to evaluate the impacts of pesticides on seagrass and the impacts of management zones on inshore reefs and fish populations.

o The NERP Marine Biodiversity Hub worked with the department, the National Offshore Petroleum Safety and Environmental Management Agency and the Australian Petroleum Production and Exploration Association to develop a consistent approach to monitoring the oil and gas industry, particularly for biological data.

o The NERP Landscapes and Policy Hub used satellite data to identify areas likely to serve as refuges for protected animals against drought, climate change and fire. This information can be used for prioritising the protection of conservation assets.

o The NERP Northern Australia Hub, Parks Australia, Traditional Owners, scientists and environment groups worked together to improve the planning of threatened species management within Kakadu National Park and identify and prioritise actions to feed into the next park plan of management.

The Australian Biological Resources Study funded 38 research grants and taxonomic training positions (PhD, masters and honours scholarships) and 27 student bursaries in 2012–13 under the National Taxonomy Research Grant Program.

In 2012–13 the department completed an extensive consultative process to establish Australia’s network of marine reserves and to develop the statutory framework to ensure that the reserves are managed effectively and efficiently. Proclaimed on 17 November 2012 under the EPBC Act, the new marine reserves have added more than 2.3 million square kilometres to the former national system of Commonwealth marine reserves, expanding the overall size of the Commonwealth marine reserve estate to some 3.1 million square kilometres. The number of marine reserves has increased from 27 (including the Great Barrier Reef Marine Park) to 60, covering more than one-third of Commonwealth waters. This is the largest system of marine reserves in the world. These new marine reserves will be managed as regional networks to protect Australia’s marine biodiversity and habitats.

In November 2012 the Minister for Sustainability, Environment, Water, Population and Communities announced details of the Fisheries Adjustment Assistance Package to support the establishment of the new Commonwealth marine reserves network. The assistance package will help mitigate the impacts of the reserves through the provision of assistance to commercial fishers and fisheries.

In 2012–13 management plans for each network of marine reserves and the Coral Sea were developed. The management plans include the management arrangements for former Commonwealth marine reserves that were subsumed into the new networks of marine reserves through the proclamation process. The management plans provide a framework for efficient and consistent management of activities within the marine reserves.

Final marine bioregional plans for the South-west, North-west, North and Temperate East marine regions were released on 27 August 2012. Marine bioregional plans bring together available information on marine conservation values and the pressures affecting these values. They also identify a range of strategies and actions to address regional conservation priorities. These plans are now supporting strategic, consistent and informed decision making by government and other stakeholders under the EPBC Act.

Figure 1: Location and extent of the former Commonwealth marine reserves

Figure 2: Location and extent of the new Commonwealth marine reserves

Source: Commonwealth of Australia, 2013 (colour maps available on department’s website).

In 2012–13 the department issued 58 permits under the access and benefit-sharing provisions of the EPBC Act (EPBC Regulations 2000, Part 8A). The department also developed a model for implementing the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (Nagoya Protocol) in Australia, bringing together key stakeholders, including industry and regional partners in the first Oceania Biodiscovery Forum.

The second phase of Caring for our Country was announced on 8 May 2012. The Australian Government committed over $2 billion to continue Caring for our Country from 2013–14 to 2017–18. From July 2013 Caring for our Country investment funding will be delivered through Sustainable

Environment (over $1.5 billion) and Sustainable Agriculture (over $600 million) streams, which will be administered separately by the environment and agriculture portfolios respectively.

As a result of Caring for our Country investments during 2012–13 eight new Indigenous Protected Areas (IPAs) were declared, increasing the National Reserve System by almost 10 million hectares. Australia now has over 10 000 terrestrial protected areas covering more than 127 million hectares, or 16.5 per cent of our land mass.

Following extensive consultation, the Minister for Sustainability, Environment, Water, Population and Communities launched Australia’s first biodiversity conservation investment prospectus: One Land – Many Stories: Prospectus of Investment 2013–14 on 10 December 2012. The prospectus outlined, in a single document the places (target areas) and national priorities (investment themes) to guide the development of project proposals in the 2013–14 rounds of funding through biodiversity investment programs within the Land Sector Package and Caring for our Country.

Under the Working on Country program, over 690 Indigenous rangers were contracted to manage significant environmental outcomes. The program contributes to Closing the Gap targets by providing meaningful employment opportunities that enable Indigenous people to manage their country and maintain culture. This work brings economic, social and health benefits to Indigenous people and delivers environmental services to the Australian community.

Between July 2008 and December 2012 the Reef Rescue program provided financial assistance to more than 3400 land managers over 8 million hectares. More than 2300 farmers undertook projects to improve fertiliser, pesticide and soil management on over 1 million hectares of land. Additionally, almost 1100 pastoralists improved groundcover management on over 7 million hectares of land.

At the World Indigenous Network conference held in Darwin in May 2013, around 1200 Indigenous people from around the world gathered to discuss land and sea management issues. An international network has been established, hosted on an interim basis by the Equator Initiative, an initiative that brings together the United Nations, governments, civil society, businesses and grassroots organisations to recognise and advance local sustainable development solutions for people, nature and resilient communities. Work is underway to establish a domestic network of Indigenous land and sea managers.

In November 2012 the forestry industry, unions and environment groups reached agreement on wood supply and conservation: the Tasmanian Forest Agreement. That agreement has now become law through the Tasmanian Forests Agreement Act 2013. The agreement and its supporting legislation guarantees 137 000 cubic metres per annum in wood supply and provides for the protection of over 500 000 hectares of Tasmania’s iconic old-growth forests. Together the Australian and Tasmanian governments indicated that they will provide over $390 million through the Tasmanian Forests Intergovernmental Agreement 2013 to support the forest industry’s transition to a more sustainable long-term future.

The Indigenous Carbon Farming Fund supports Indigenous Australians to participate in the Carbon Farming Initiative. Under the Indigenous Carbon Farming Fund Capacity Building and Business Support stream over $4.2 million (GST exclusive) was granted over three years with $1.3 million (GST exclusive) spent in 2012–13. Forty-four projects were contracted across Australia to assist Indigenous Australians to access carbon farming specialists, business development expertise and legal advice for their participation in carbon farming projects.

The National Wildlife Corridors Plan was released on 4 November 2012. The plan lays the foundation for a collaborative, whole-of-landscape approach to conserving Australia’s native plants, animals and other organisms. An independent committee was established under the Land Sector Carbon and Biodiversity Board to oversee the implementation of the plan and the development of a nomination, assessment and declaration process for national wildlife corridors.

Australia’s Native Vegetation Framework was released in December 2012 by the Council of Australian Governments Standing Council on Environment and Water. This national framework guides the ecologically sustainable management of Australia’s native vegetation. Its development was the result of a cooperative effort between all Australian governments.

In December 2012 the Minister for Sustainability, Environment, Water, Population and Communities made the threat abatement plan to reduce the impacts on northern Australia’s biodiversity by the five listed invasive grasses. Three statutory reviews were completed of threat abatement plans for: beak and feather disease affecting endangered psittacine species; the impacts of tramp ants on biodiversity in Australia and its territories; and infection in amphibians with chytrid fungus resulting in chytridiomycosis. In supporting actions under threat abatement plans, a range of research and other

projects were funded including field efficacy trials for a new feral cat bait. All fisheries assessments were completed within agreed time frames for all Commonwealth-managed

and state-managed fisheries requiring approvals under the EPBC Act. In February 2013 the department completed its latest assessment of the Commonwealth Southern and

Eastern Scalefish and Shark Fishery against the requirements of the EPBC Act. By area, this is one of Australia’s largest fisheries, covering nearly half of the Australian Fishing Zone and catching over 300 species. The department’s assessment considered the impact of the fishery on target species, by-product species and the ecosystem and imposed conditions to ensure that interactions with protected species are minimised.

StrategiesNational Environmental Research Program All hubs delivered significant research outputs to the department in 2012–13. The department and the hubs were active in knowledge brokering and communication to increase the uptake of research results in environmental decision making and policy development. The department and the broader environmental research community developed and implemented a further set of 16 emerging priority projects to improve responsiveness to emerging issues within the program.

Australian Biological Resources Study Australia’s national focal point for taxonomy, the Australian Biological Resources Study, supports policy on taxonomy and systematics through the Convention on Biological Diversity and the Australian Government’s National Research Priorities. To make taxonomic information more widely available, it collaborates with other biodiversity information initiatives such as the Atlas of Living Australia, the Global Biodiversity Information Facility and the Australian Barcode of Life Network.

Bush BlitzBush Blitz is a multimillion dollar national biodiversity discovery partnership between the Australian Government, global resources company BHP Billiton and the not-for-profit conservation research organisation Earthwatch Australia. Bush Blitz supports key Australian Biological Resources Study priorities including promoting and raising the profile of taxonomy, completing the national biodiversity picture, strengthening the taxonomy funding and relationship base, and increasing Australia’s taxonomic capacity.

Proclamation of new Commonwealth marine reservesOn 11 July 2012 the Director of National Parks published a notice in the government gazette inviting public comment on the proposal to declare new Commonwealth marine reserves. The 60-day comment period concluded on 10 September 2012. Approximately 80 000 submissions were received.

The Director of National Parks considered the comments received and provided a report to the Minister for Sustainability, Environment, Water, Population and Communities, who recommended to the Governor-General that the reserves be proclaimed under Australia’s national environmental law.

On 17 November 2012, 40 Commonwealth marine reserves were proclaimed and the names of four existing reserves were amended. Associated with declaration of the new reserves was revocation of seven reserves and one conservation zone, as the areas were included in the new marine reserves.

Develop a Fisheries Adjustment Assistance Package to support the establishment of the new Commonwealth marine reservesThe Fisheries Adjustment Assistance Package was established in 2012–13 to assist commercial fishers and fisheries directly affected by the introduction of the new Commonwealth marine reserves. In consultation with fisheries management agencies and the commercial fishing industry the department advanced progress on the development of the package. Delivery of the package will begin in the 2013–14 financial year ahead of commercial fishing exclusions from the new reserves taking effect. In line with the 2011 Fisheries Adjustment Policy, there will be further consultation with the commercial fishing industry as the government finalises the guidelines and delivery arrangements for the key elements of the package.

Develop and implement management arrangements for the Commonwealth marine

networksFollowing the proclamation of the new Commonwealth marine reserves, the Director of National Parks invited public comment on the preparation of management plans for the Coral Sea Commonwealth Marine Reserve and four new networks of Commonwealth marine reserves. This consultation period was followed by an invitation for comments on the draft management plans for the Coral Sea Commonwealth Marine Reserve and the four new networks of Commonwealth marine reserves. Public consultation on the preparation of a management plan for the South-east Commonwealth Marine Reserves Network was also undertaken in July and August 2012.

The management plans were prepared in accordance with section 368 of the EPBC Act. They aim to provide for:

the protection and conservation of biodiversity and other natural and cultural values of the marine reserves

ecologically sustainable use of natural resources.

Management plans provide certainty about the activities that will be allowed in the reserves. They aim to provide guidance for and consistency in management of the reserves within the networks and across all the reserve networks for up to 10 years.

During the two public comment periods the Director of National Parks received over 100 000 submissions regarding management plans for each of the South-west, North-west, North, Temperate East and South-east Networks and the Coral Sea Commonwealth Marine Reserve. The finalised management plans for the five marine reserve networks and the Coral Sea Commonwealth Marine Reserve took account of public comments. The plans were approved by the Minister for Sustainability, Environment, Water, Population and Communities and tabled in parliament on 12 March 2013 alongside reports from the Director of National Parks outlining comments received and the director’s views on the comments.

The management plan for the South-East network came into effect on 1 July 2013. The management plans for the remaining networks and the Coral Sea Commonwealth Marine Reserve will come into effect on 1 July 2014. Detailed implementation arrangements for the management plans will be developed over the next 12 months.

Management of the former Commonwealth marine reservesUnder the EPBC Act, any activity in a marine reserve requires approval from the Director of National Parks during the period between proclamation of the reserves and the implementation of a management plan.

The former Commonwealth marine reserves are managed with ongoing research and environmental monitoring, community and stakeholder awareness and engagement, and vessel and aerial surveillance and compliance. Much of this work is implemented under partnership agreements and service arrangements with other Commonwealth agencies, including the Australian Fisheries Management Authority (AFMA), and Australian Customs and Border Protection Service, Border Protection Command (BPC) and state fisheries and conservation agencies in Western Australia, South Australia, Tasmania and New South Wales. At July 2013 over 60 state agency officers are appointed as wardens under the EPBC Act.

AFMA provides vessel monitoring system information for Commonwealth fishing vessels in marine reserves. The department is working with AFMA to introduce an alert system in 2013. The planned alert system, the first of its kind, will provide automatic and real-time information to owners and skippers when they enter marine reserves where their fishing activities are not allowed.

The Border Protection Command and the department in 2012–13 undertook a total of 564 aerial surveillance flights, which resulted in 610 individual visits to Commonwealth marine reserves. The department issued 648 approvals in compliance with the EPBC Regulations and executed 48 enforcement actions in response to compliance incidents in Commonwealth marine reserves.

BiodiscoveryAustralia’s biodiversity offers huge potential for basic and applied scientific research. Investigation of the biochemical and genetic makeup of our native species can be used to produce products with social, economic and environmental value—for example, in agriculture and bioremediation and for alternative fuels and new drugs.

The department manages a regulatory and policy framework for access to native genetic resources in Commonwealth areas and sharing the benefits arising from their use. The purpose of the framework is to provide legal certainty for researchers and innovators, ensure sustainable use of biological resources and obtain tangible benefits for Australia and the conservation of our biodiversity.

The department is responsible for providing policy advice on the Nagoya Protocol under the Convention on Biological Diversity and continues to represent Australia in ongoing international discussions on its implementation. In consultation with key stakeholders, including industry and regional partners in the first Oceania Biodiscovery Forum, the department is finalising an implementation model for the Nagoya Protocol so that the government can make an informed decision on its ratification.

Caring for our Country Phase 1 (2008–2013)The objective of Caring for our Country was to achieve an environment that is healthier, better protected, well managed, resilient and provides essential ecosystem services in a changing climate. In 2012–13 Caring for our Country invested over $12 million in new projects under the 2012–13 Business Plan across the country to achieve national objectives for biodiversity conservation and sustainable farm practices. This funding supported regional natural resource management (NRM) groups; local, state and territory governments; Indigenous groups; industry bodies; land managers; farmers; Landcare groups; and communities.

Community Action Grants The Community Action Grants program, jointly administered with the Department of Agriculture, Fisheries and Forestry, was established to support community groups and enable them to contribute to the outcomes of the Caring for our Country initiative. The program offered grants between $5000 and $20 000 to encourage their participation and engagement in NRM around the country. The grants assist grassroots organisations to deliver better environmental outcomes across Australia. In 2012–13 the Community Action Grants program provided over $4.9 million in small Community Action Grants for 290 projects across Australia. This included $576 000 to Indigenous organisations to fund 29 projects. The successful groups used the funding to conduct NRM work and record cultural heritage and traditional knowledge.

The National Reserve System The National Reserve System is Australia’s national network of formally recognised protected areas. The system is dedicated to the long-term protection of Australia’s terrestrial biodiversity. It consists of over 10 000 terrestrial protected areas covering more than 127 million hectares or over 16.5 per cent of the Australian landmass. It includes a broad range of habitats from lush rainforests to savannahs through to Australia’s alpine regions and deserts. The National Reserve System program provided funding assistance through Caring for our Country to support the collective effort of governments, non-government organisations and Indigenous and private landholders to expand the protected area estate.

Indigenous Protected AreasThe Caring for our Country initiative provides funding to support Indigenous Protected Areas (IPAs)—non-statutory protected areas that form part of the National Reserve System. The funding assisted Indigenous landowners to establish and manage IPAs on their lands and to develop cooperative management arrangements for existing protected areas with the relevant state and territory government agencies. The program also promotes the integration of Indigenous ecological and cultural knowledge into the management of these areas.

In 2012–13 the IPA program supported 59 declared IPAs. Another 24 consultation and co-management projects explored the potential for IPA declaration on Indigenous-owned lands and co-management arrangements over existing protected areas. The Dhimurru Aboriginal Corporation declared the first sea country Indigenous Protected Area over Commonwealth and Northern Territory waters in May 2013.

The Caring for our Country initiative provided over $14.3 million in grants and project support to IPAs in 2012–13, including to support the declaration of eight new IPAs covering almost 10 million hectares.

Indigenous programsCaring for our Country programs that support Indigenous people and communities contribute to closing the gap between Indigenous and non-Indigenous Australians.

Under Caring for our Country, the Working on Country program met its target of employing over 690

Indigenous rangers. Rangers were employed to manage and deliver significant environmental outcomes over 1.5 million square kilometres of land and sea country in remote and regional Australia. Working on Country provides nationally accredited training and career pathways for Indigenous Australians.

As part of the Stronger Futures in the Northern Territory jobs package, Working on Country is on track to employ up to an additional 50 Indigenous rangers by June 2015. These ranger positions have created real jobs, giving individuals, their families and their communities’ greater economic certainty while delivering improved environmental outcomes for the nation.

Reef Rescue Reef Rescue, jointly administered with the Department of Agriculture, Fisheries and Forestry, provided $200 million over five years (2008–09 to 2012–13) to improve the health of the Great Barrier Reef and its resilience to climate change by improving the quality of water entering the reef catchment. This initiative is helping land managers to adopt improved land management practices that reduce the nutrients, pesticides and sediments leaving their properties and entering the reef lagoon. Reef Rescue also supports monitoring, assessment, reporting and research to improve our understanding of the links between land management practices and environmental impacts.

Improved water quality management in the Tuggerah Lakes Caring for our Country invested in planning and on-ground actions that protect the conservation values of coastal and inland high ecological value aquatic ecosystems, including the Tuggerah Lakes estuary in New South Wales. Funding of $20 million was provided from 2007 to 2013 for the works under this program.

The project is managed through a range of partnerships with the New South Wales Government, the Hunter-Central Rivers Catchment Management Authority, Landcare groups and local landholders. Since 2011 almost 1300 volunteers and 36 community organisations had been involved in project activities.

By April 2012–13 project success included treating over 1200 hectares of land affected by weeds of national significance such as bitou bush, lantana and blackberry since 2011.

Additionally in 2012–13 a number of educational activities occurred including landowner workshops on topics such as creating frog-friendly environments, the Starting in Your Backyard—Porters Creek Wetland school education program to educate school children on what they can do to help the lakes and ‘catchment crawls’ of Ourimbah Creek were conducted to allow community members to observe the saltmarsh and streambank rehabilitation activities undertaken.

Caring for our Country Phase 2 (2013–2018)The second phase of Caring for our Country was announced on 8 May 2012. The Australian Government committed over $2 billion to continue Caring for our Country from 2013–14 to 2017–18. From July 2013 Caring for our Country investment funding will be delivered through Sustainable Environment (over $1.5 billion) and Sustainable Agriculture (over $600 million) streams, which will be administered separately by the environment and agriculture portfolios respectively. Programs in the Sustainable Environment stream that called for projects in 2012–13 for delivery after 1 July 2013 included:

Regional Delivery for NRM organisations (this also included Sustainable Agriculture stream investment)

Target Area Grants (open grants for medium to large-scale projects) Community Environment Grants (small grants for community groups) Reef Rescue (this program also included Sustainable Agriculture stream investment) Working on Country and Indigenous Protected Areas (IPAs).

National Wildlife Corridors Plan The National Wildlife Corridors Plan was released in November 2012 and lays the foundation for a collaborative, whole-of-landscape approach to conserving Australia’s native plants and animals by establishing an enduring network of wildlife corridors. These national wildlife corridors will create major links in the Australian landscape to support our biodiversity and its adaptation to a changing climate. The plan, based on voluntary cooperation and support for the existing efforts of communities, landholders, governments and industry, will help guide future government investments.

Tasmanian Forests Intergovernmental Agreement The Australian and Tasmanian governments continued to assist with the forestry industry to transition to a more sustainable long-term future and to provide protection to over 500 000 hectares of additional areas with important conservation values.

The Tasmanian Forests Intergovernmental Agreement aims to support the forestry industry, local jobs and communities and protect additional areas of native forests. It will help the forest industry to adapt to market changes while protecting the communities and families that rely on the sector for their livelihoods.

World Indigenous Network At the United Nations Conference on Sustainable Development (Rio+20), the then Prime Minister, the Hon. Julia Gillard MP announced the development of an International Indigenous Peoples and Local Communities Land and Sea Managers Network (the World Indigenous Network). The network was launched at the inaugural World Indigenous Network Conference, which was held in Darwin between 26 and 29 May 2013. Approximately 1200 delegates from more than 50 countries attended the conference, participating in over 70 presentations, workshops and keynote addresses.

This network underpins the important role that Indigenous peoples’ knowledge, connection to country and ability to care for country plays in the protection and sustainable management of the Earth’s natural resources. It also reinforces the Australian Government’s commitment to using traditional ecological knowledge alongside contemporary land management practices to ensure better management.

The results of work to date on the network, including the conference, are being taken up by the Equator Initiative – United Nations Development Programme, as interim host, to ensure delivery of an innovative and enduring World Indigenous Network. Work is progressing on a domestic network of Indigenous land and sea managers.

Land Sector Carbon and Biodiversity Board The Land Sector Carbon and Biodiversity Board was established in November 2011 under the Climate Change Authority Act 2011. The board provides advice to government on a range of Land Sector Package measures to help ensure the protection of Australia’s ecosystems and increase resilience to the impacts of climate change.

The board:

reports annually to the relevant minister(s) for presentation to the parliament about the operations of that year

advises the relevant minister(s) on implementation of the Land Sector Package measures advises the relevant minister(s) on performance indicators for the Land Sector Package measures.

The board is appointed by the relevant ministers. The members of the board in 2012–13 were:

The Hon. Robert Debus AM (Chair) Ms Anna Skarbek Mr David Crombie Mr Joe Ross Professor Lesley Hughes.

The board held two face-to-face meetings in Canberra and seven teleconferences during 2012–13. A separate board annual report for 2012–13 provides further details on the operations of the board and the progress of the Land Sector Package measures.

Biodiversity FundThe Biodiversity Fund provides investment to improve the resilience of Australia’s landscape to climate change, enhance the environmental outcomes of Carbon Farming Initiative projects and help landholders to protect carbon and biodiversity values on their land.

The Biodiversity Fund supports establishment, restoration and protection of biodiverse carbon stores as well as actions to prevent the spread of invasive species across connected landscapes. Rounds that called for applications in 2012–13 for delivery from 1 July 2013 included:

Investing in Tasmania’s Native Forests 2013–14 Northern Australia Targeted Investment 2013–14 Biodiversity Fund: Round Two 2013–14 Working on Country Reef Rescue.

Regional Natural Resource Management Planning for Climate Change Fund (Stream 1) The department supported the delivery of Stream 1 of the Regional Natural Resource Management Planning for Climate Change Fund. The Government approved over $24 million in funding over four years from 2012–13 to support 53 regional NRM organisations, in consultation with stakeholders, to update existing regional NRM plans to incorporate climate change adaptation and mitigation strategies.

Stream 2 is $15 million for regional level climate change information to support medium-term NRM planning and was managed in 2012–13 by the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.

Threat abatement plans and adviceThreat abatement plans were developed and reviewed where required to support efforts to prevent and abate threats to biodiversity.

The Minister for Sustainability, Environment, Water, Population and Communities made the threat abatement plan to reduce the impacts on northern Australia’s biodiversity by the five listed grasses in December 2012. Three statutory reviews were completed of threat abatement plans. A revised draft threat abatement plan for disease in natural ecosystems caused by Phytophthora cinnamomi was released for public comment period in 2013.

A draft threat abatement advice for predation, habitat degradation, competition and disease transmission by feral pigs was presented to the Threatened Species Scientific Committee (TSSC) for review in June 2013.

BiosecurityThe department contributed to work by the Department of Agriculture, Fisheries and Forestry (DAFF) and state and territory governments through the national biosecurity system to develop national policy on pest plants, animals and diseases that cause harm to the environment.

The department provided advice to DAFF on the environmental impact of nationally significant biosecurity threats, such as electric ants (Wasmannia auropunctata) and red imported fire ants (Solenopsis invicta) in Queensland and myrtle rust (Uredo rangelii). In December 2012 the department hosted a national workshop on myrtle rust in natural ecosystems to share information and management strategies and identify research gaps. The workshop was attended by all state and territory governments as well as the research community.

Fisheries assessmentsAustralian fisheries were assessed against the Guidelines for the Ecologically Sustainable Management of Fisheries, 2nd Edition, through active engagement with Commonwealth and state and territory management agencies.

Fisheries policy engagement has been achieved through consultation across the department and with relevant Commonwealth agencies.

Marine bioregional plansThe release of four marine bioregional plans represented a significant step toward informed, strategic management of the Commonwealth marine environment. For the first time, there is now a consolidated picture of the biophysical characteristics and diversity of marine life in Commonwealth waters and an assessment of pressures operating on those values. This will assist industry in the planning of new activities in Commonwealth waters, and will assist the department in assessing impacts of activities on key conservation values. The systematic identification of priorities will inform investment and research and the strategies and actions will guide government and industry.

Evaluation and conclusions

The projects under the National Environmental Research Program (NERP) program were managed and reviewed through hub steering committees and six-monthly progress reports. These reviews of progress informed the priorities of each hub’s 2013 annual work plan. The NERP program guidelines require an evaluation within four years of program establishment.

The Australian Biological Resources Study is contributing to furthering our knowledge of the taxonomy of Australia’s flora and fauna. Over the last 12 months, research projects funded by the Australian Biological Resources Study have resulted in the description of 32 new genera and 273 new species.

Bush Blitz has now completed its survey schedule. Since 2009 the program has undertaken a total of 17 species discovery surveys to more than 60 National Reserve System properties totalling over 3 million hectares. To date, the program has discovered more than 650 new species. Bush Blitz taxonomy contracts awarded to participating Bush Blitz scientists are helping to describe and publish these new species.

Following the proclamation of the new Commonwealth marine reserves, 40 of Australia’s 41 provincial marine bioregions are now represented in Commonwealth reserves.

Management plans for all new Commonwealth marine reserves are in place in advance of their implementation on the water.

The access and benefit-sharing regime administered by the department continues to be held in high regard internationally as countries around the world seek to implement the provisions of the Nagoya Protocol.

The Reef Plan 2011 (third) Report Card, produced under the joint Paddock to Reef Integrated Monitoring, Modelling and Reporting program, was released in April 2013. The report card presents monitoring data up to June 2011 and shows good progress, with 34 per cent of sugarcane growers, 17 per cent of graziers and 25 per cent of horticulture producers adopting improved management practices reducing nutrient and sediment loads into the reef. As a result of this practice change and Reef Rescue investment from July 2008 to June 2011 there was pollutant load reductions of 12.6 per cent in soluble nutrients (as indicated by dissolved inorganic nitrogen), 14.6 per cent reduction in pesticides, 5.6 per cent reduction in sediment and 5.2 per cent reduction in particulate nutrients (as indicated by particulate nitrogen).

Tangible and well-documented project and program (including research) outputs will underpin the capacity to measure and report progress towards meeting the objectives of the Biodiversity Fund. More broadly, this will enable measuring and reporting against the objectives of key overarching Australian conservation policies, including the National Wildlife Corridors Plan, Australia’s Biodiversity Conservation Strategy, Australia’s Native Vegetation Framework, the achievements of the Land Sector Package and the Clean Energy Future plan as a whole.

A Biodiversity Fund Monitoring and Reporting Framework was considered by the Land Sector Carbon and Biodiversity Board in November 2012. The framework was integrated into the Monitoring, Evaluation, Reporting and Improvement (MERI) Strategy for Caring for our Country and the Biodiversity Fund, and was made publically available in April 2013 at: www.nrm.gov.au/funding/meri.

The MERI strategy provides a consistent and integrated approach to monitoring and reporting, and supports a process of continual improvement by identifying what has worked well and lessons learned. Biodiversity Fund program monitoring will be underpinned by three types of monitoring data: recipient monitoring at the site level, targeted scientific monitoring to inform program progress, and landscape scale, research and other data including remote sensing monitoring.

Statutory requirements under the EPBC Act for the development and review of threat abatement plans were met. Assessments of the environmental performance of fisheries under the EPBC Act were completed for six Commonwealth-managed fisheries, 17 fisheries managed by the states and territories and one small-scale operation.

Results for Deliverables and Key Performance IndicatorsProgram 1.1: Sustainable Management of Natural Resources and the EnvironmentDELIVERABLES 2012–13 RESULTSDelivering on the final reporting requirements for the first five-year phase Caring for our Country.

The 2010–11 and 2011–12 report cards were released. The Caring for our Country Achievements Report is being finalised.

Developing the next phase of Caring for our Country from 2013–14 based on the findings of the review of the initiative in consultation with stakeholders.

Consultations were conducted between June and August 2012, commencing with the launch of Caring for our Country: An Outline for the Future 2013–18.

The broad design of sustainable environment elements of Caring for our Country was launched by the Minister for Sustainability, Environment, Water, Population and Communities through Australia’s first biodiversity conservation investment prospectus, One Land – Many Stories: Prospectus of Investment 2013–14 on 10 December 2012. The prospectus was supported by guidelines for each grants program. Caring for our Country funding rounds conducted in 2012–13 for funding from 2013–14 included:

Regional Delivery Target Area Grants Community Environment Grants Reef Rescue Working on Country and Indigenous Protected Area programs.

The new Monitoring Evaluation Reporting and Improvement Strategy: Caring for our Country and the Biodiversity Fund was developed and released in April 2013, ahead of phase 2 of the program.

Investing in projects under the annual Caring for our Country business plans.

Over $12 million in projects were funded through the 2012–13 business plan.

Developing Indigenous partnerships that engage Indigenous communities in delivering Caring for our Country outcomes.

Over $220 million was approved over five years to June 2013 and over 690 Indigenous rangers were employed under Working on Country, which is part of the Caring for our Country initiative.

A more comprehensive, representative and resilient National Reserve System.

The National Reserve System increased to over 16.5 per cent of Australia’s landmass. Over 127 million hectares are now protected, conserving examples of our unique landscapes, plants and animals for future generations.

Ensuring the continued use, support and reinvigoration of traditional ecological knowledge to underpin biodiversity conservation.

Both the Working on Country and Indigenous Protected Area programs supported Indigenous Caring for our Country activities, including the use, recording and transfer of traditional ecological knowledge.

Investing in projects to protect and conserve biodiversity and natural icons including environmental stewardship.

Caring for our Country invested in targeted activities to protect national icons and biodiversity. Funded activities focused on improving outcomes for nationally threatened species and ecological communities, enhancing habitat condition and connectivity and strengthening ecological resistance to climate change and other pressures.

Continuing to invest in Working on Country and support Indigenous communities to manage the natural and cultural values of their country.

Support has been expanded to provide training and employment to 730 Indigenous rangers by June 2015.

Twelve new Indigenous ranger positions were delivered as part of the expansion of Working on Country in the Northern Territory under the Stronger Futures in the Northern Territory policy and support was provided for two new remote ranger groups.

Investing in projects that address threats to the Great Barrier Reef.

$53.84 million was invested in the Reef Rescue program during 2012–13. This included funding for Land and Sea Country Partnerships, which strengthened communications between local communities, Great Barrier Reef managers and stakeholders and worked towards building a better understanding of Traditional Owner use of the Great Barrier Reef Marine Park.

Key findings of the Reef Water Quality Protection Plan 2011 Report Card published in 2012–13, indicates good progress towards targets and that a significant proportion of the agricultural industry has adopted improved land management practices since 2009. Pollutant load reductions represent progress towards the five year Reef Rescue targets with a reduction of 12.6 per cent in soluble nutrients (84 per cent achievement of pro-rata target), 14.6 per cent in pesticides (97 per cent achievement of pro-rata target), 5.2 per cent in particulate nutrients (87 per cent achievement of pro-rata target) and 5.6 per cent in sediment (93 per cent achievement of pro-rata target).

Investing in projects that protect or conserve the values of World Heritage areas, Ramsar wetlands, critical aquatic habitats and coastal hotspots.

In 2012–13 under the Caring for our Country initiative, 47 new projects were approved which addressed targets related to Ramsar wetlands and critical aquatic habitats and coastal hotspots. These projects had a total value of $17 613 089.

A further 11 new projects with a total value of $2 513 643 were approved to protect or conserve the values of Australia’s World Heritage areas.

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

The Australian Government undertakes a wide range of activities that directly contribute to the implementation of Australia’s Biodiversity Conservation Strategy.

Recent achievements include:

Finalising the Australian Government National Wildlife Corridors Plan in November 2012.

Funding of projects under the Biodiversity Fund and Sustainable Environment stream of the Caring for our Country initiative to conserve, protect and restore the Australian environment by making it healthier, better protected, well managed and resilient.

Establishment of 40 new Commonwealth marine reserves around Australia, adding more than 2.3 million square kilometres to Australia’s marine reserve estate.

The dedication of the Birriliburu IPA, comprising more than 6 million hectares; Australia now has a continuous wildlife corridor of more than 24 million hectares, taking in seven IPAs and two nature reserves.

Finalising the National Wildlife Corridors Plan and associated management arrangements.

The National Wildlife Corridors Plan was released on 4 November 2012.

The National Wildlife Corridors Committee was appointed under the Land Sector Carbon and Biodiversity Board in June 2013 to oversee implementation of the plan.

Contribution towards implementation of the 2010–12 Reconciliation Action Plan, development of a second departmental Reconciliation Action Plan (2013–15) and development of Indigenous engagement guidelines.

The department’s 2013–2015 Reconciliation Action Plan focuses on mainstream policy and programs in addition to the Indigenous-specific focus of the 2013–2015 Reconciliation Action Plan. It continues the department’s commitment to the Australian Government’s Closing the Gap initiative to overcome Indigenous disadvantage.

The department’s 2010–2012 Reconciliation Action Plan was completed at the end of 2012. Department highlights included deepening relationships with Traditional Owners; making programs more accessible to Aboriginal and Torres Strait Islander peoples and communities; developing staff cultural awareness; and strengthening our position as an employer of choice for Aboriginal and Torres Strait Islander peoples.

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

The department continued to work with state and territory jurisdictions and key stakeholders to promote nationally consistent practice, policy and legislation that facilitates access to genetic resources and provides legal certainty for researchers and innovators.

Representing Australia’s interests in the Intergovernmental science-policy Platform on Biodiversity and Ecosystems Services (IPBES), including actions to strengthen the domestic science-policy interface.

There was Australian representation at the first meeting of the IPBES Plenary in Bonn, Germany, from 21 to 26 January 2013. Dr Mark Lonsdale, Chief of CSIRO Ecosystem Sciences, was elected as co-chair of the interim Multidisciplinary Expert Panel of IPBES. There was also representation at the IPBES expert workshop—Contribution of Indigenous and Local Knowledge Systems to IPBES: Building Synergies with Science, held in Tokyo, Japan, from 9 to 11 June 2013. A formal request was submitted to IPBES to perform an assessment on ‘environmental accounting: from theory to practice’.

Developing, reviewing and implementing species recovery plans and conservation advice for listed threatened species and ecological communities.

In 2012–13, 26 recovery plans were made or adopted covering 41 species and three ecological communities.

In 2012–13, 27 threatened species and six ecological community conservation advices were approved.

Assessing individual Australian fisheries against the guidelines for the ecologically sustainable management of fisheries.

A total of 23 fisheries and one small-scale operation were assessed in 2012–13, with four being considered by the minister and the remainder under delegation. Four of the assessments completed included determination of non-detriment findings for the export of species listed under the Convention on International Trade in Endangered Species.

Developing threat abatement plans and threat abatement advice for key threatening processes related to invasive species.

In December 2012 the minister made a threat abatement plan to reduce the impacts on Northern Australia’s biodiversity of five listed grasses.

A revised draft threat abatement plan for disease in natural ecosystems caused by Phytophthora cinnamomi was released for public comment from 20 February 2013 until 20 May 2013.

A draft threat abatement advice for predation, habitat degradation, competition and disease transmission by feral pigs was prepared in consultation with state and territory governments and presented to the Threatened Species Scientific Committee for review

in June 2013.

Developing and implementing management arrangements for Commonwealth marine reserves.

To support the government’s intention to allow for a period of adjustment, transitional management arrangements were developed, providing certainty to marine industries and stakeholders that there would be no changes on the water for the new marine reserves until the management plans for these areas come into effect.

In advance of changes coming into effect on the water for all new Commonwealth marine reserves, management plans were developed and finalised along with the management plan for the South-east network. Management plans are now in place for the entire network of Commonwealth marine reserves.

The management plan for the South-east network came into effect on 1 July 2013. The remaining management plans for the four networks and the Coral Sea Reserve are due to commence on 1 July 2014.

Implementation of the management plans is underway and has included the development of class approvals for the South-east network with relevant industries and arrangements with partner agencies for ongoing services.

Implementing marine bioregional plans for the South-west, North-west, North and Temperate East marine regions.

Final marine bioregional plans for the South-west, North-west, North and Temperate East marine regions were released on 27 August 2012. These plans are now supporting strategic, consistent and informed decision making under the EPBC Act. They are also providing a framework for strategic intervention and investment by government to meet policy objectives and statutory responsibilities.

Contributing to a process to ensure additional areas of Tasmanian public native forest with high conservation values are further protected through inclusion in formal legislated reserves.

The Tasmanian Forest Agreement was signed on 23 November 2012 and was made part of Tasmanian law on 3 June 2013 through the Tasmanian Forests Agreement Act. The agreement provides protection to over 500 000 hectares of native forests with important conservation values.

Contributing to a process to ensure the Tasmanian forest industry has a sustainable and guaranteed wood supply.

The Tasmanian Forest Agreement was signed on 23 November 2012 and was made part of Tasmanian law through the Tasmanian Forests Agreement Act on 3 June 2013. The agreement provides certainty to the forestry industry of a minimum of 137 000 cubic metres of high-quality sawlog annually.

Program 1.1: Sustainable Management of Natural Resources and the Environment (continued)KEY PERFORMANCE INDICATORS

2012–13 RESULTS

National Reserve System (including Indigenous Protected Areas) to increase by five million hectares a year.

In 2012–13 eight new Indigenous Protected Areas were declared covering almost 10 million hectares.

Funded activities to address the threats by invasive species to allow regeneration and recovery of at least 10 000 hectares of high-quality native habitat or vegetation that supports critically endangered, endangered and threatened species and communities.

26 projects covering in excess of 360 000 hectares were funded to address the threats by invasive species to allow the regeneration and recovery of high quality native habitat or vegetation.

Ensured management arrangements in place for World Heritage Areas meet the requirements of the World Heritage Convention.

Management arrangements are in place for all of Australia’s World Heritage Areas, 13 of which are funded under the Caring for our Country initiative.

The government invested in several projects that addressed threats to World Heritage properties, including weed and pest control, fire and visitor management and climate change modelling and planning.

By 2013, reduced by 25 per cent the discharge of dissolved nutrients and chemicals and by 10 per cent the discharge of sediment and nutrients from agricultural lands to the Great Barrier Reef lagoon.

From July 2008 to December 2012, the Reef Rescue program supported more than 1100 pastoralists across 7 million hectares and more than 2300 sugarcane, horticulture, cotton and grain farmers over 1 million hectares to adopt land management practices to reduce the discharge of sediment, nutrients and chemicals into the reef lagoon.

From July 2008 to December 2012 Reef Rescue investment, resulted in the following pollutant load reductions catchment wide:

12 per cent reduction in dissolved inorganic nitrogen 14.6 per cent reduction in photosynthetic II pesticides 5.6 per cent reduction in total suspended sediments 5.2 per cent reduction in particulate nitrogen.

The Reef Plan 2013 Report Card will be released in late 2013 and will report on Reef Rescue investment between July 2008 to June 2013.

Responded to identified key threats to the ecological character of at least 200 000 hectares of Ramsar listed wetlands.

In 2012–13, $15.5 million was invested to address threats from invasive plant and animal species and improve land management practices in priority Ramsar wetlands and high ecological value aquatic ecosystems across Australia.

Responded to identified key threats to the environmental values of at least 500 000 hectares of (non-Ramsar) coastal and inland high conservation value aquatic ecosystems.

There are 33 projects working to protect high ecological value aquatic ecosystems. These projects are addressing threats from invasive plant and animal species and improving land management practices.

Improved water quality management priority coastal hotspots, including the Gippsland Lakes in Victoria and Tuggerah Lakes Estuary in New South Wales by funding at least 50 on-ground water quality projects.

In excess of 57 farmers adopted improved on-farm nutrient and dairy effluent and irrigation practices in the Gippsland Lakes. In the Tuggerah Lakes estuarine system, close to 1300 volunteers, along with 36 community and Indigenous organisations, were involved in on-ground activities to improve water quality management to reduce sediment in water sources feeding the lakes.

Engaged at least 500 community organisations in coastal and marine rehabilitation, restoration and conservation actions.

Caring for our Country exceeded the target of engaging at least 500 community organisations in coastal rehabilitation restoration and conservation projects under the Coastal Community Engagement target.

Facilitated involvement of Indigenous organisations or groups in at least 20 projects to achieve Caring for our Country outcomes and achieve a national target of over 690

Caring for our Country exceeded its target of involving Indigenous organisations or groups in at least 20 projects to achieve Caring for our Country outcomes.

Over 90 Working on Country ranger teams are working across Australia, through which over 690 Indigenous rangers are employed.

Indigenous rangers employed under Working on Country.

Twelve new Indigenous ranger positions were created as part of the Expansion of Working on Country in the Northern Territory under the Stronger Futures in the Northern Territory policy.

Funded activities that will increase managed native habitat and vegetation by at least one million hectares to reduce critical threats to biodiversity and enhance the condition, connectivity and resilience of habitats and landscapes.

An additional 771 850 hectares of managed native habitat and vegetation land were approved under 38 new projects for 2012–13. Funding for these projects totalled $11 626 995.

Established threat abatement plans (as required) to guide efforts to address invasive species related key threatening processes.

In December 2012 the Minister for Sustainability, Environment, Water, Population and Communities made a threat abatement plan to reduce the impacts on Northern Australia’s biodiversity of five listed grasses.

A revised draft threat abatement plan for disease in natural ecosystems caused by Phytophthora cinnamomi was released for public comment from 20 February 2013 until 20 May 2013.

A draft threat abatement advice for predation, habitat degradation, competition and disease transmission by feral pigs was prepared in consultation with state and territory governments and presented to the Threatened Species Scientific Committee for review in June 2013.

Statutory reviews were completed for three threat abatement plans:

The minister decided in February 2013 the threat abatement plans for beak and feather disease affecting endangered psittacine species (2005) and the impacts of tramp ants on biodiversity in Australia and its territories (2006) are still feasible, effective and efficient.

The minister decided in December 2012 the threat abatement plan for infection in amphibians with chytrid fungus resulting in chytridiomycosis (2006) should be revised and threat abatement advice should be developed.

Statutory reviews were initiated for four threat abatement plans:

competition and land degradation by unmanaged goats (2008) competition and land degradation by rabbits (2008) predation by European red fox (Vulpes vulpes) (2008) predation by feral cats (2008).

Finalised the proposed marine reserve networks for the South-west, North-west, North, Temperate and Coral Sea marine regions.

The Commonwealth marine reserve networks for the South-west, North-west, North, Temperate East and Coral Sea Reserve were proclaimed on 17 November 2012.

Ensured the representation and management of each of Australia’s provincial marine bioregions in the Commonwealth marine reserves system by 2014.

The new Commonwealth marine reserves were identified through the marine bioregional planning process as part of Australia’s commitment to establish a National Representative System of Marine Protected Areas by 2012.

With the proclamation of the new Commonwealth marine reserves on 17 November 2012, the Australian Government fulfilled its commitment to establish a representative network of marine protected areas in Commonwealth waters by 2012.

Selected indicators and baseline measurements established by June 2013 to support implementation and reporting on national biodiversity and native vegetation strategies.

A baseline measurement was established to support implementation and reporting on Target 1 of Australia’s Biodiversity Conservation Strategy 2010–2030.

Further indicators and baseline measurements to align the implementation and reporting of Australia’s Biodiversity Conservation Strategy 2010–2030, Australia’s Strategy for the National Reserve System 2009–2030 and Australia’s Native Vegetation Framework 2012 are being pursued and will form the basis of a nationally agreed implementation plan.

Finalise National Wildlife Corridors Plan by the end of 2013 and future investments prioritised accordingly.

The National Wildlife Corridors Plan was released in November 2012.

Integrated principles of connectivity described in the National Wildlife Corridors Plan into the Caring for our Country program. For example, one of the five-year outcomes of Caring for our Country is targeting connectivity and corridor investments.

Investment is prioritised consistent with a National Wildlife Corridors Plan and a landscape scale approach to biodiversity conservation and

Caring for our Country 2013–18 entrenches landscape-scale approaches and the contribution of investment to connectivity at multiple scales through the five-year outcomes and the guidelines for investment.

adaptation to climate change.

Program 1.2: Environmental Information and ResearchDELIVERABLES 2012–13 RESULTSThrough the National Environmental Research Program (NERP), delivering public good focused environmental research designed to engage with end users and support evidence-based decision making by environmental managers and policy makers.

There was solid progress in 2012–13 under NERP, with research across 127 projects, funded mainly through five multi-institutional research hubs. Staff from the research institutions, the department and broader portfolio worked closely to refine details of the research scope and expected outputs to ensure that research information products address the priority information needs of the portfolio. A significant number of research papers and other outputs were made publicly available in 2012–13.

Reviewing Australian Government activity in environmental information to identify opportunities for cooperation, consolidation, improvement and efficiencies.

The Independent Review of Australian Environmental Information Activity was published in March 2013. The department undertook consultation with other agencies on its findings, in the context of the National Plan for Environmental Information Initiative.

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

Australia has worked closely with other IWC member countries to progress conservation and governance reform initiatives over the intersessional period to the IWC’s 2014 annual meeting. This included the joint hosting with the United States of a whale-watching operators workshop in Brisbane on 24 and 25 May 2013 along with adjacent meetings of the IWC Standing Working Group on Conservation Management Plans and the IWC Conservation Committee.

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

Australia’s legal action against Japan’s program of ‘scientific’ whaling is being led by the Attorney-General’s Department. The department assisted in providing resources, policy support and technical advice. Departmental officials were included in Australia’s delegation to oral hearings in the case that were held in The Hague, The Netherlands, from 26 June to 16 July 2013.

Implementing the international whale and marine mammal conservation initiatives program.

The department continued to implement the six-year, $32 million International Whale and Marine Mammal Conservation Initiative, ensuring non-lethal whale research is aligned to the government’s overarching policy objectives.

DELIVERABLES 2012–13 BUDGET TARGET

2012–13 RESULTS

Number of research projects co-funded with other agencies. 102 123

Number of researchers supported under the NERP funding program. 376 603

Number of researchers supported under the Australian Biological Resources Study national taxonomic research grants program.

64 153

Number of biodiversity research projects co-funded with other agencies.

16 174

Program 1.2: Environmental Information and ResearchKEY PERFORMANCE INDICATORS

2012–13 RESULTS

A national framework is in place to guide coordinated approaches to cetacean conservation.

The department, in collaboration with the states and territories, progressed a number of national initiatives:

National guidance on the management of whale and dolphin incidents in Australian waters was finalised.

The National Vessel Strike Strategy was drafted and will be released for public comment early in 2013–14.

The southern right whale (Eubalaena australis) recovery plan was made in February 2013.

The draft blue whale (Balaenoptera musculus) recovery plan was released for public comment in January 2013 and the humpback whale (Megaptera novaeangliae) recovery plan was drafted.

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

Numerous research activities funded under the program were carried out in Australia’s waters, in regional waters (Indian and Pacific Oceans) and in the Southern Ocean, including the successful Antarctic Blue Whale expedition, which was conducted in early 2013. A conference of scientists from 16 countries was held in the Republic of Korea in June 2013 to showcase non-lethal research on whales in the Southern Ocean. Outcomes of the conference were reported to the IWC Scientific Committee meeting also held in Korea in June.

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

The department was closely engaged in the provision of policy and technical advice to the Attorney-General’s Department in support of Australia’s case in the International Court of Justice, including in the lead-up to and during the conduct of the oral hearings in The Hague, The Netherlands, from 26 June to 16 July.

KEY PERFORMANCE INDICATORS 2012–13 BUDGET TARGET

2012–13 RESULTS

NERP research information products publicly available (%).

95 95

Relative value of co-investment made by other stakeholders to NERP research projects (%).

50 54

Number of research articles, papers and notes printed in peer-reviewed research journals, books or other publications.

10 172

Number of other stakeholders organisations/groups or agencies engaged in the research process.

100 241

Number of research projects which involve researchers from three or more institutions.

50 58

A national plan to build an enduring capacity in environmental information incorporates, and builds on, foundations established for Australian Government coordination and priority setting.

Yes The department is considering the findings and recommendations of the Independent Review of Australian Environmental Information Activity in consultation with Australian Government agencies for the purposes of developing a long-term strategy for environmental information.

A formal mechanism exists for cross-agency priority setting on environmental information.

Yes The Environmental Information Advisory Group, established under the National Plan for Environmental Information Initiative, provides a formal mechanism for cross-agency priority setting on environmental information.

Priorities agreed across Australian Government agencies inform the development of a range of environmental information products and services.

Yes The Bureau of Meteorology released a Statement of Australian Government Requirements for Environmental Information. The statement identifies—across nine broad areas of interest—policy, research and operational activities of the Australian Government that are dependent upon environmental information.

Taxa revised or newly described under the Australian Biological Resources Study.

200 368

Program 1.3: Carbon Pollution Reduction – Land Sector InitiativesDELIVERABLES 2012–13 RESULTSAnnual report to Parliament about progress of land sector measures.

The Land Sector Carbon and Biodiversity Board Annual Report 2012–13 to be tabled in parliament as soon as practical after the end of the 2012–13 financial year.

Advice for relevant minister(s) on implementation of the land sector package.

The Land Sector Carbon and Biodiversity Board continued to provide advice to the minister on the implementation and outcomes of a number of measures in the Land Sector Package.

Advice on coordinated research activities.

The Land Sector Carbon and Biodiversity Board continued to successfully identify a number of areas of research collaboration across the measures in the Land Sector Package. Feedback from the board will focus on strengthening the government’s capacity to better align research with ongoing program needs and maximise investments.

Supporting projects that increase quantity and resilience of biodiverse ecosystems.

An investment of more than $270 million over six years was made across 312 Biodiversity Fund round one projects to revegetate, rehabilitate and restore around 18 million hectares of the Australian landscape over six years commencing 2011–12.

Three funding rounds of the Biodiversity Fund (Northern Australia Targeted Investment 2013–14, Biodiversity Fund: round two 2013–14 and Investing in Tasmania’s Native Forests 2013–14) were conducted in 2012–13. Investment will commence in 2013–14.

Supporting projects that enhance landscape connectivity.

The 2013–2014 rounds of the Biodiversity Fund (Northern Targeted Investment 2013–14, Biodiversity Fund round two 2013–14 and Investing in Tasmania’s Native Forests 2013–14) invest in projects that improve habitat condition and connectivity through protection, enhancement or re-establishment of vegetation and in activities that manage invasive species in a connected landscape.

Projects under these rounds will add to grants of more than $270 million over six years to support 312 Biodiversity Fund round one projects. Round one projects will revegetate over 100 000 hectares of land nationwide, while close to 5 million hectares will be restored and around 13 million hectares will be protected from invasive species. The majority of projects will improve connectivity within the landscape by building on and linking currently isolated habitat areas, relieving pressure on vulnerable native species and increasing the resilience of the landscape.

Regional natural resource management bodies are assisted to update regional natural resource management plans that guide land use planning to maximise carbon co-benefits such as landscape resilience and connectivity.

Under the Regional Natural Resource Management Planning for Climate Change Fund (Stream 1) the Australian Government approved over $24 million in funding over four years from 2012–13 to support 53 regional NRM organisations, in consultation with stakeholders, to update existing regional NRM plans to incorporate climate change adaptation and mitigation and adaptation strategies.

Regional natural resource management plan updates will be underpinned by the Principles for the Regional Natural Resource Management Planning for Climate Change Fund. The principles were developed to ensure that regional natural resource management plans guide decisions relating to the location and nature of biodiversity and carbon planting projects across the landscape.

Regional natural resource management organisations are assisted to update regional natural resource management plans that guide planning for climate change impacts on the land and to maximise the environmental benefits of carbon farming.

Regional NRM organisations were funded to update regional NRM plans to address the Principles for the Regional Natural Resource Management Planning for Climate Change Fund.

Support for the restoration and protection of landscapes to improve the resilience of Australia’s landscapes to climate change impacts.

Results for supporting the restoration and protection of Australian landscapes to improve the resilience to the impacts of climate change are outlined above.

Supporting projects that provide knowledge and information for Indigenous Australians to help decision-making on whether or not to participate in the carbon market.

Through the Indigenous Carbon Farming Fund, $4.24 million (GST exclusive) over the next three years has been granted to successful applicants under the Capacity Building and Business Support stream in 2012–13.

Supporting projects that provide business development support and capacity building to develop and implement Indigenous carbon businesses.

Results for supporting projects that provide business development support and capacity building to develop and implement Indigenous Carbon Business are outlined above.

Supporting projects that provide legal and governance support to develop contractual and governance arrangements around Indigenous carbon businesses.

Results for supporting projects that provide legal and governance support to develop contractual and governance arrangements around Indigenous carbon businesses are outlined above.

Program 1.3: Carbon Pollution Reduction – Land Sector InitiativesKEY PERFORMANCE INDICATORS 2012–13 RESULTSLand Sector Carbon and Biodiversity Board—Board operational (providing advice to Ministers on Land Sector Package).

The Land Sector Carbon and Biodiversity Board was established in November 2011 under the Climate Change Authority Act 2011. The Minister for Sustainability, Environment, Water, Population and Communities tabled the 2011–12 board annual report in October 2012. The existing members were reappointed in November 2012 for staggered periods of six months and three years. The board held two face-to-face meetings and seven teleconferences in 2012–13. The Land Sector Package Key Performance Indicators were endorsed by the Board at the April 2013 meeting.

Biodiversity Fund—round one (2012–13) ongoing program implementation.

In 2012–13 the department continued to manage the 312 projects totalling more than $270 million over six years funded under Biodiversity Fund Round One.

Biodiversity Fund—round two (2012–13) developed (incorporating lessons learnt, stakeholder input, and revised processes).

Guidelines for Biodiversity Fund round two 2013–14 were launched on 11 February 2013. The 2012–13 design of Biodiversity Fund round two was based on a broad range of considerations, including information presented in the State of the Environment 2011 report, stakeholder feedback, departmental analysis and feedback from the Land Sector Carbon and Biodiversity Board.

There were two additional funding rounds of the Biodiversity Fund (Northern Targeted Investment 2013–14 and Investing in Tasmania’s Native Forests 2013–14) conducted in 2012–13 for investments in 2013–14.

Regional Natural Resource Management Planning for Climate Change Fund – (Stream 1) (2012–13) commencement of program implementation.

Under the Regional Natural Resource Management Planning for Climate Change Fund (Stream 1) the Australian Government approved over $24 million in funding over four years from 2012–13 to support 53 regional natural resource management organisations, in consultation with stakeholders, to update existing regional natural resource management plans to incorporate climate change adaptation and mitigation and adaptation strategies.

Regional Natural Resource Management Planning for Climate Change Fund – 56 regional natural resource management plans updated (with guidance for carbon bio-sequestration in the landscape).

Regional natural resource management plan updates will be underpinned by the Principles for the Regional Natural Resource Management Planning for Climate Change Fund. The principles were developed to ensure that regional natural resource management plans guide decisions relating to the location and nature of biodiversity and carbon planting projects across the landscape.

Indigenous Carbon Farming Fund – round one (2012–13) commencement of program implementation.

In 2012–13, $4.24 million (GST exclusive) over the next three years was granted to successful applicants under the Capacity Building and Business Support stream.

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

Main responsibilities for this outcomeNational Waste Policy, National Waste Report and product stewardship, including the National Television and Computer Recycling Scheme.

Air quality, fuel standards and vehicle emissions.

Hazardous substance regulation and management.

Chemical policy and risk assessment.

Protection of the ozone layer and management of synthetic greenhouse gases.

Biotechnology risk assessment.

National Pollutant Inventory.

Environment Quality Division

Policy advice on population and sustainable communities, including the Sustainable Population Strategy.

Assist state and local governments to plan and provide for employment hubs to support local jobs through the Suburban Jobs Program.

Develop a set of headline sustainability indicators for Australia to inform decision making and planning at national and community levels, and commence regular reporting against these indicators.

Establish and support the National Sustainability Council, including in the production of the biannual Sustainable Australia Report.

Lead (jointly with AusAID) the Australian Government’s engagement in the development of Sustainable Development Goals.

Sustainability Policy and Analysis Division

Objectives Improve the quality of the environment and reduce pollution through national frameworks, standards,

regulation, and monitoring of wastes, hazardous substances, air pollutants, ozone depleting substances and synthetic greenhouse gases.

Promote sustainable communities; contributing to a sustainable Australia through supporting state and local governments to plan and provide for increased employment opportunities outside the central business districts of our major capital cities.

Improve access to information about Australia’s sustainability for use in decision making and planning at national and community levels, particularly through a set of sustainability indicators for Australia.

Key achievements Arrangements were in place to apply the equivalent carbon price on synthetic greenhouse gases on 1

July 2012 as part of the Clean Energy Future plan. Arrangements for destruction of waste synthetic greenhouse gases and ozone depleting substances

as part of the Clean Energy Future Package commenced from 1 July 2013. The department advanced work on a number of the 16 strategies under the National Waste Policy:

Less waste, more resources, including:o implementing the first target year of the National Television and Computer Recycling Scheme,

the first co-regulatory product stewardship scheme established under the Product Stewardship Act 2011 and Strategy 1 of the National Waste Policy

o publishing sustainable procurement guidelines under Strategy 2 of the National Waste Policy in April 2013

o establishing the Product Stewardship Advisory Group under the Product Stewardship Act 2011

and publishing the first product stewardship list in June 2013o opening the first application round for voluntary product stewardship accreditationo supporting consideration by environment ministers of submissions in response to the

Packaging Impacts Consultation Regulation Impact Statement. Ministers committed to development of a decision regulation impact statement which will provide a more detailed analysis of the potential impacts of the options.

In August 2012 an industry–government working group finalised guidelines for a voluntary industry-led tyre product stewardship scheme that aims to increase recycling of end-of-life tyres in Australia. The end-of-life tyre product stewardship scheme received Australian Competition and Consumer Commission authorisation in April 2013. The scheme is expected to commence in 2013–14.

Environment ministers agreed to the release of a consultation regulatory impact statement on the Council of Australian Governments (COAG) chemical reforms under Outcome 16 of the National Partnership Agreement to Deliver a Seamless National Economy. The regulatory impact statement, publicly released in April 2013, aligns with Strategy 12 of the National Waste Policy. Extensive consultation was conducted with the community, industry and government, including through public forums held in capital cities.

Environment ministers agreed to release a consultation regulatory impact statement on reducing emissions from wood heaters. The regulatory impact statement was publicly released in April 2013. Extensive consultation was conducted with the community, industry and government, including through public forums held in capital cities and regional areas. Work will continue in 2013–14.

The department represented Australia at the ordinary and extraordinary meetings of the conferences of the parties to the Basel, Rotterdam and Stockholm conventions in Geneva, Switzerland, in April 2013. Australia participated in key discussions on the listing of the chemical flame retardant hexabromocyclododecane (HBCD) as a persistent organic pollutant under the Stockholm Convention on Persistent Organic Pollutants (the Stockholm Convention).

The department managed and coordinated the Australian Government’s engagement with the negotiation of the Minamata Convention on Mercury. In January 2013 the international community agreed that a final text for a new convention on mercury would be opened for signature by countries in October 2013. This is an important step in managing this potent neurotoxin.

The department commenced an independent review of the Product Stewardship (Oil) Act 2000, including an assessment of the framework and benefit entitlements of the Product Stewardship for Oil Scheme. An issues paper was released in March 2013 for public consultation to seek feedback from stakeholders on issues that should be considered by the independent reviewers.

The Suburban Jobs Program provides a practical demonstration of place-centred policies to enhance community sustainability. Following a competitive grant round, funding was awarded in 2012–13 to three successful Suburban Jobs program projects which were announced to support local employment opportunities. Funding will be provided to these projects over three years (from 2012–13 to 2014–15).

o The University of Western Sydney will receive $13.5 million to support the $29.5 million Werrington Park Corporate Centre in Penrith, New South Wales.

o Melton City Council will receive $14.6 million towards the establishment of the $21 million Western Business Accelerator and Centre for Excellence in Melton, Victoria.

o The City of Playford will receive $11.3 million for the $15.3 million Stretton Centre in Playford, South Australia.

A set of sustainability indicators for Australia covering social, environmental and economic dimensions was announced by the Minister for Sustainability, Environment, Water, Population and Communities in October 2012.

A National Sustainability Council was established in October 2012 as a source of independent expert advice on sustainability issues and to report publicly against the sustainability indicators for Australia.

The National Sustainability Council’s first public report against the sustainability indicators was released in May 2013. The report, Sustainable Australia Report 2013—Conversations with the Future, provides an evidence base for decision making and planning by governments, businesses, communities and individuals.

Strategies

The department’s work to reduce waste generation, improve the quality of the environment and pursue sustainability is achieved by:

leading and promoting national approaches to environmental issues national legislation and policy delivery engagement on international agreements.

Leading and promoting national approachesThe National Waste Policy: Less waste, more resourcesThe National Waste Policy provides a strategic framework for addressing waste management issues and resource recovery to 2020. The policy was agreed by environment ministers in November 2009 and endorsed by COAG in October 2010.

The National Waste Policy provides the basis for strong collaboration among stakeholders to deliver effective approaches to national waste issues, to avoid the generation of waste, reduce the amount of waste for disposal, and manage waste as a resource to deliver economic, environmental and social benefits. Implementation of the policy means that all wastes, including hazardous wastes, will be managed in a way that is consistent with Australia’s international obligations and the protection of human health and the environment.

The National Waste Policy sets six key directions:

1. taking responsibility2. improving the market3. pursuing sustainability4. reducing hazard and risk5. tailoring solutions6. providing the evidence.

Sixteen priority strategies that build on these key directions have been identified to:

govern work that would benefit from a national or coordinated approach provide focus on work occurring in individual jurisdictions complement existing activity.

On behalf of the Australian Government, the department is progressing the strategies in collaboration with the states and territories.

The National Waste Policy Implementation Report 2012–2013 reports progress and achievements under the policy between January 2012 and June 2013.

Protection of the ozone layer and management of synthetic greenhouse gasesAs part of the Clean Energy Future Plan, the department implemented an equivalent carbon price on synthetic greenhouse gases from 1 July 2012. This was achieved through amendments to the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. Synthetic greenhouse gases are often used to replace ozone-depleting substances that have been, or are being, phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol). These synthetic greenhouse gases are controlled under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC). While these particular gases do not deplete the ozone layer, they have high global warming potential relative to carbon dioxide.

In 2012–13 the department developed a program to provide additional incentives for the destruction of waste synthetic greenhouse gases and ozone-depleting substances, which commenced on 1 July 2013.

The department works closely with Australian industry and international governments to promote the responsible use of ozone depleting substances and synthetic greenhouse gases to minimise their effect on the atmosphere. This work includes meeting Australia’s obligation to phase out ozone depleting substances under the Montreal Protocol and reduce the emissions of synthetic greenhouse gases under the Kyoto Protocol.

Chemicals reform agenda

In 2012–13 the department, on behalf of the Standing Council on Environment and Water, progressed the implementation of the reform agenda arising from the COAG response to recommendations in the Productivity Commission’s 2008 report on chemicals and plastics regulation.

The department is working with the states and territories to address the need to implement a set of national and consistent risk management standards to address the environmental risks associated with industrial chemicals. This will give environment ministers greater ability to manage the environmental impacts of chemicals.

The department released a consultation regulation impact statement in April 2013 which explores options for developing and implementing national risk management standards of industrial chemicals. The consultation period closed on 28 June 2013 and the department will develop and present the Decision Regulation Impact Statement in 2014.

National legislation and policy deliveryOzone protectionThe department administers the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 which places controls on the manufacture, import and export of all ozone depleting substances and their synthetic greenhouse gas replacements. Controls are also placed on imports of equipment containing ozone depleting substances and synthetic greenhouse gases, including refrigeration and air conditioning equipment.

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 enables Australia to meet its obligations under the Vienna Convention for the Protection of the Ozone Layer (Vienna Convention), the Montreal Protocol, the Framework Convention on Climate Change and the Kyoto Protocol.

Product stewardshipThe Product Stewardship Act 2011 delivers on a key commitment by the Australian Government under the National Waste Policy. Product stewardship is the approach to reducing the environmental, health and safety impacts of products by encouraging or requiring manufacturers, importers, distributors and consumers to take responsibility for products throughout their life cycle, including at end of life. The Product Stewardship Act 2011 establishes a national framework to support voluntary product stewardship arrangements, industry and government co-regulatory arrangements and mandatory product stewardship schemes.

A priority in 2012–13 was to develop and implement voluntary product stewardship arrangements under the Product Stewardship Act 2011. The Product Stewardship (Voluntary Arrangements) Instrument 2012 and the Product Stewardship Regulation 2012 came into effect in November 2012. These arrangements will support the Australian Government when assessing organisations that voluntarily seek product stewardship accreditation. Applications for voluntary product stewardship arrangements opened in June 2013.

End-of-life televisions and computers became the first products regulated under the co-regulatory provisions in November 2011. The National Television and Computer Recycling Scheme launched its first collection point in May 2012. In the first target year of 2012–13 the scheme achieved 100 per cent compliance from liable parties and delivered 482 collection services across Australia. These are the first steps towards ensuring that end-of-life televisions and computers are diverted from landfill.

The Product Stewardship Advisory Group was established in November 2012 under provisions included in the Product Stewardship Act 2011. The group represents a mix of industry and environment experts and will advise the minister on classes of products to be considered for either accreditation or regulation under the Act. The first list of product classes was published on the department’s website in June 2013.

Hazardous wasteThe department administers the export, import and transit of hazardous waste through the Hazardous Waste (Regulation of Exports and Imports) Act 1989. The process under this Act for granting permits ensures that the transboundary movement of hazardous wastes is dealt with in an environmentally sound manner, both within and outside of Australia.

National Pollutant InventoryThe National Pollutant Inventory was established under the National Environment Protection (National Pollutant Inventory) Measure 1998 to provide a database to inform the community, industry and government of the sources, types and amounts of pollutants emitted to air, water and land in Australia. The department hosts the inventory and works with states and territories to publish emissions data annually from industrial facilities such as mines, power stations and factories and other sources such as households and transport-related sources.

The National Pollutant Inventory now contains 14 years of data and publishes annual industry emission data by the statutory date of 31 March. The inventory includes emission estimates for 93 toxic substances that have been identified as important due to their possible effect on human health and the environment, and the source and location of these emissions.

Chemical assessmentsThe department prepares scientific assessments and management advice for the Australian Government regulators, the National Industrial Chemicals Notification and Assessment Scheme and the Australian Pesticides and Veterinary Medicine Authority on the environmental impacts of new and existing chemicals and veterinary medicines. In 2012–2013 the department completed risk assessments for 238 chemicals.

Biotechnology and nanotechnologyThe department assesses the environmental safety of biological products and genetically modified organisms, and provides advice to the minister. Based on this advice the minister then advises the Gene Technology Regulator under the Gene Technology Act 2000, administered by the Department of Health and Ageing. In 2012–13 the department completed six assessments of genetically modified organisms.

Fuel qualityThe department administers the Fuel Quality Standards Act 2000, which places an obligation on the fuel industry, including fuel suppliers, to supply fuels that meet strict environmental requirements. Fuel quality standards have been made for petrol, diesel, biodiesel, liquefied petroleum gas (autogas) and ethanol E85. Fuel quality information labelling standards have also been made for ethanol (in petrol) and ethanol E85. The E85 standard commenced on 1 November 2012 and ensures optimum vehicle and environmental performance of the fuel and labelling at the point of sale.

The department is currently considering introducing a fuel quality standard for diesel blended with up to 20 per cent biodiesel (B20) automotive fuel under the Fuel Quality Standards Act 2000. In 2012–2013 comment was sought from stakeholders on the technical considerations and labelling requirements for the proposed B20 standard.

The department undertakes fuel sampling nationally to monitor the quality of fuels sold in Australia and ensure compliance with the Fuel Quality Standards Act 2000. Through this program fuel samples are taken throughout the fuel supply chain, including at service stations.

Used oilEvery year about 600 million litres of used petroleum-based oil is sold in Australia. The department manages the Product Stewardship for Oil Program for the environmental sustainable management and re-refining of used oil and its re-use under the Product Stewardship (Oil) Act 2000.

The Product Stewardship (Oil) Act 2000 establishes a levy–benefit system, which is currently 5.449 cents per litre of new oil (or kilogram for greases). This levy on new oil is used to fund benefit payments to used oil recyclers. These arrangements provide incentives to increase used oil recycling in Australia and to keep it from entering the environment.

Engagement on international agreementsThe department leads Australia’s participation in a number of international agreements (see Table 1) that seek to minimise the impacts from hazardous chemicals and hazardous wastes. Australia has been an active and constructive participant in multilateral meetings held during 2012–13.

Australia has been a signatory to the Montreal Protocol since 1989 and has met or exceeded all of its phase-down obligations under the protocol. In 2012–13 the department worked with the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education to establish the Australian position on amendment proposals to phase down hydrofluorocarbons (HFCs). HFCs are often used as a substitute for other synthetic greenhouse gases or ozone depleting substances already controlled by the Montreal Protocol. The proposals will be discussed at the next meeting of parties, due to be held in Bangkok in October 2013.

A key priority for the department during 2012–13 has been working on treaty-making requirements for the Minamata Convention on Mercury. In January 2013 it was agreed that an international convention on mercury would be developed. The department has been managing and coordinating the Australian Government’s engagement with the negotiation process. The Minamata Convention on Mercury will be available for signature from October 2013. Although it is expected to take several years to enter into force, it is an important step in managing this potent neurotoxin.

In 2009 perfluorooctane sulfonate (PFOS) and polybrominated diphenyl ethers were added to the Annexes of the Stockholm Convention on Persistent Organic Pollutants (POPs). The department has commenced preparation of a regulation impact statement and national interest analysis as part of the treaty-making process for PFOS and polybrominated diphenyl ethers. In April and May 2013 the Conference of the Parties to the Stockholm Convention agreed to list the flame retardant hexabromocyclododecane in Annex A of the Stockholm Convention.

As part of Australia’s efforts as a signatory to the Stockholm Convention, the department has continued to monitor and assess the effects of chemicals in Australia which may have a harmful effect on human health and the environment. Monitoring provides important information on the temporal and long-term trends in POP levels and their behaviour, distribution and transport within Australia. Monitoring continues for a number of chemicals of concern using a range of sophisticated sampling techniques to test for levels of POPs in air, water, soil, dust, flora, fauna and the general population.

Table 1: Major international agreementsAGREEMENT PURPOSEBasel Convention on Transboundary Movement of Hazardous Wastes and their Disposal

Management of hazardous wastes

Minamata Convention on Mercury Management of mercury

Montreal Protocol on Substances that Deplete the Ozone Layer

Protection of the ozone layer

Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade

Management of hazardous chemicals

Stockholm Convention on Persistent Organic Pollutants Management of hazardous chemicals

Strategic Approach to International Chemicals Management Management of hazardous chemicals and wastes

Suburban jobsThe Suburban Jobs Program involves the practical demonstration of place-centred policies to enhance community sustainability. Following a competitive grant round, funding was awarded to three successful Suburban Jobs program projects which were announced to support local employment opportunities. Funding will be provided to these projects over three years (from 2012–13 to 2014–15).

The Suburban Jobs Program takes an innovative approach to the pressures faced by communities as a result of rapid growth by addressing economic development, planning and infrastructure, education and training, ‘liveability’ and amenity concerns. The program was designed to support the strategic planning undertaken by local and state governments in relation to the growing suburbs of Australia’s major capital cities.

Measuring Sustainability Program (Sustainable Australia Report 2013)The government announced a set of sustainability indicators for Australia in October 2012. Development of the indicators was informed by consultation across governments, with key stakeholders and experts. The indicators are designed to monitor key stocks of social, natural and economic capital that underpin wellbeing at national and community levels and that need to be maintained over time to ensure the wellbeing of future generations of Australians. The indicators will be reported against publicly every two years.

The National Sustainability Council is an independent expert body that was established in October 2012 to provide advice to government on sustainability issues and deliver public reports against the national sustainability indicators. The council’s role also includes providing targeted advice on sustainability issues at the request of the minister and providing advice on potential improvements to the sustainability indicators over

time. The council is made up of leading experts from social, environmental and economic domains and is supported by a secretariat within the department.

The National Sustainability Council’s inaugural report, Sustainable Australia Report 2013—Conversations with the Future, was released by the Minister for Sustainability, Environment, Water, Population and Communities in May 2013. The report provides detailed data and analysis against the set of sustainability indicators for Australia and identifies a set of key issues and challenges that need to be taken into account to ensure a sustainable Australia. The report is intended as an evidence base for planning, decision making and discussion by governments, businesses, communities and individuals about Australia’s future.

Evaluation and conclusionsReview of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations In 2012–13 the department progressed the review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and regulations. This will ensure that Australia effectively and efficiently meets its international obligations and national policy objectives for managing hazardous substances, hazardous wastes and other wastes.

The review has been initiated for a number of reasons. More than a decade has passed since the last review of the Act, during which time there have been significant changes to Australia’s international obligations, domestic legislation and national waste policy objectives. The review also provides an opportunity to consider industry experience with the operation of the Act and regulations since they were last reviewed and whether there are opportunities to reduce regulatory burdens on industry.

An issues paper was released on 14 June 2012 for public consultation to seek feedback from stakeholders on issues that should be addressed in the review. Following consideration of stakeholder feedback the department has prepared a consultation paper, to be released in 2013. The consultation papers undertake a more detailed analysis of issues and seek feedback on possible reforms. A cost-benefit analysis of possible changes to the current preference for domestic recycling over export to appropriate recovery and recycling providers in OECD member countries has been conducted to support the review.

Review of the Product Stewardship (Oil) Act 2000The third independent review of the Product Stewardship (Oil) Act 2000 and relevant provisions of customs and excise legislation commenced in March 2013 and will be completed in 2013. The independent review is being conducted by Professor Neil Byron.

The independent review is examining the operation of the Product Stewardship for Oil scheme and the extent to which the objectives of the Act have been achieved. A consultation paper was released in March 2013 to seek feedback from stakeholders. The outcomes from the review will be tabled in 2013–14.

Results for Deliverables and Key Performance IndicatorsProgram 2.1: Management of Hazardous Wastes, Substances and PollutantsDELIVERABLES 2012–13 RESULTSProgress implementation of the product stewardship legislative framework.

Implementation was progressed. The Product Stewardship Act 2011 commenced on 8 August 2011. It provides a national legislative framework for product stewardship.

In November 2012 the Product Stewardship (Voluntary Arrangements) Instrument 2012 and the Product Stewardship Regulation 2012 came into effect, which supports the accreditation of voluntary product stewardship arrangements. The regulation specifies the application fees for the accreditation of voluntary product stewardship arrangements.

Section 108B of the Act establishes the Product Stewardship Advisory Group. The advisory group was established to advise the minister on the annual list of classes of products for potential consideration, during the next financial year, for some form of accreditation or regulation under the Act.

In June 2013 the Parliamentary Secretary for Sustainability and Urban Water published the first annual product list. This list considered advice provided by the advisory group.

Progress the implementation of the Implementation was progressed. Three approved co-regulatory arrangements were

National Television and Computer Recycling Scheme, including recycling targets.

operational in the first target period under the National Television and Computer Recycling Scheme and a further two arrangements were approved during the year. The response of television and computer importers and manufacturers was positive, with 100 per cent of liable parties meeting their obligations in 2012–13. At 30 June 2013, 482 television and computer collection services had been delivered around Australia, including 388 ongoing services and 94 short-term recycling events. Co-regulatory arrangements are on track to deliver reasonable access to collection services across Australia by December 2013.

Applying an equivalent carbon price to import and manufacture synthetic greenhouse gases, as part of the Clean Energy Future Package.

This was achieved. From 1 July 2012, the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation placed an equivalent carbon price on synthetic greenhouse gases and equipment containing these gases.

Administering national legislation covering product stewardship, fuel quality standards, the disposal and re-use of used petroleum based oil, national environment protection measures, the export, import and transit of hazardous waste and the import, manufacture, use and destruction of ozone depleting substances and synthetic greenhouse gases.

Work is ongoing. The department administered national legislation covering:

Product stewardship, including the Product Stewardship (Televisions and Computers) Regulations 2011, to effectively manage the environmental, health and safety impacts of products and, in particular, the impacts associated with the disposal of products.

The Product Stewardship for Oil program, which is an economic incentives package for the disposal and re-use of used petroleum-based oil.

Fuel quality standards for petrol, automotive diesel, biodiesel, liquefied petroleum gas (autogas) and a new fuel quality standard for ethanol (E85).

Hazardous waste, through regulation of the export, import and transit of hazardous waste to ensure that transboundary movements are managed in an environmentally sound manner.

Controls on the import, export, manufacture, acquisition, use, storage, handling and disposal of ozone depleting substances and synthetic greenhouse gases, including a destruction incentives program, which will commence on 1 July 2013.

Fulfilling Australia’s obligations under international agreements on waste and hazardous substances, hazardous chemicals, synthetic greenhouses gases, and ozone depleting substances.

Work is ongoing. The department fulfilled its international obligations for:

Hazardous waste through administration of national legislation regulating the export, import and transit of hazardous waste to ensure that transboundary movements are managed in an environmentally sound manner.

Hazardous chemicals by:

finalising negotiations on a legally binding instrument to reduce the adverse impacts of mercury

administering the Prior Informed Consent procedure under the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (Rotterdam Convention) for chemicals in international trade and monitoring the levels of persistent organic pollutants in the environment as part of the effectiveness evaluation for the Stockholm Convention.

Synthetic greenhouse gases and ozone depleting substances under the Montreal Protocol. Imports of ozone depleting substances controlled under the Montreal Protocol in 2012–13 were 59.29 ozone depleting potential (ODP) tonnes (39.73 ODP tonnes of hydrochlorofluorocarbons and 19.56 ODP tonnes of methyl bromide) compared with Australia’s Montreal Protocol limit of 157.223 ODP tonnes.

Leading work with the states and territories to establish an environmental standards setting body under COAG reforms for chemicals relating to better environment protection and management.

Work is ongoing. The COAG Standing Council on Environment and Water released a consultation regulation impact statement on options for a standards setting body to manage the environmental risks of industrial chemicals on 11 April 2013. The consultation regulation impact statement was open for comment until 28 June 2013, with a number of public forums held in state capital cities.

Contributing to work led by the states and territories in the development of national air pollutant emission reduction strategies and the evidence base to support these strategies.

Work is ongoing. In 2012–13, the department worked with states and territories on a National Plan for Clean Air, which is being developed by the COAG Standing Council on Environment and Water for consideration by COAG. This plan will introduce a new strategic national approach for air quality that integrates air quality standard setting and actions to reduce pollution. It will also respond to the recommendations of the review of the National Environment Protection (Ambient Air Quality) Measure, released in

September 2011.

The department has contributed to the development of the national plan by supporting the work of the Standing Council on Environment and Water and its subcommittees in the analysis of cost-effective emission and exposure reduction actions to reduce air pollution. In particular, the department is leading two Standing Council on Environment and Water emissions reductions projects: non-road spark ignition engine and equipment emissions (NRSIEE) and wood heater smoke emissions. A NRSIEE consultation summary report was published on the Standing Council on Environment and Water website in November 2012. A consultation regulatory impact statement for reducing emissions from wood heaters was released by the Standing Council on Environment and Water on 11 April 2013 for public consultation. The closing date for submissions on the statement was 15 July 2013.

Providing advice to the statutory regulators on the risk and environmental impacts of the trial and release of genetically modified organisms, nanomaterials, chemicals and biological products.

This was achieved. 244 risk assessments with risk management recommendations and ad hoc professional advice provided to the statutory regulators.

Administer the National Pollutant Inventory and annual publication of previous year’s data set by 31 March.

This was achieved. The annual update of National Pollutant Inventory data was published on 2 April 2013. The delay was due to a system-wide computer fault. Development work was conducted on reporting systems and technical manuals that guide industry were updated.

KEY PERFORMANCE INDICATORS 2012–13 RESULTSThe National Pollutant Inventory contributes to managing pollution by monitoring, measuring and publicly reporting the quantities of 93 substances emitted by industry and providing estimates of emissions from households and motor vehicles.

This was achieved. The annual update of National Pollutant Inventory facility data means that the National Pollutant Inventory now includes 14 years of pollutant data covering more than 4300 facilities.

Placing an equivalent carbon price on imports and manufacture of synthetic greenhouse gases through the Clean Energy Future Package from 1 July 2012 encourages industry and consumers to reduce global warming emissions from these gases.

This was achieved. Under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and related legislation, synthetic greenhouse gases manufactured in or imported into Australia attract a levy based on their equivalent carbon price.

This applies to hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride and equipment containing these gases.

Eleven case studies on industry innovation following the introduction of the equivalent carbon price on synthetic greenhouse gases are available on the department’s website.

The Product Stewardship (Televisions and Computers) Regulations result in importers and manufacturers of televisions, computers, printers and computer products achieving a recycling target of 30 per cent in 2012–13.

The regulations provide that a report on performance against the recycling target will be given to the minister by 30 October each year. The department will publish the performance data after this date. The recycling target at 28 June 2013 was 41 399 tonnes. Any excess recycling or any shortfall can be carried forward by the co-regulatory arrangements and either subtracted from or added to the 2013–14 recycling target.

KEY PERFORMANCE INDICATORS (CONTINUED) 2012–13 BUDGET TARGET

2012–13 RESULTS

Used oil recovered for re-use over a 3-year average under the Product Stewardship (Oil) Act 2000 (megalitres).

>250 264

Number of site visits undertaken to test fuel samples as part of the compliance program under the Fuel Quality Standards Act 2000.

650 944

Number of assessments of chemicals and genetically modified Approx. 250 Completed risk assessments for 238 chemicals (170 industrial

organisms undertaken. chemicals and 68 ag-vet chemicals) and six genetically modified organisms.

Percentage of licences and permits to control import and export of ozone depleting substances and synthetic greenhouse gases issued within statutory timeframes.

100 100%

Program 2.2: Sustainable CommunitiesDELIVERABLES 2012–13 RESULTSEntering into funding agreements with successful local and state government grant applicants and commence implementation of Suburban Jobs projects.

Announcement of successful applicants was made in July and September 2012.

Funding agreements were executed with the University of Western Sydney (New South Wales), Melton City Council (Victoria), and the City of Playford (South Australia) by November 2012. All projects are underway.

Identifying and promoting a set of headline sustainability indicators that will track progress of key economic, social and environmental factors over time through regular public reporting against the indicators; and development of an online directory of sustainability information (to be available by 2013), including links to existing sustainability data and reports by Australian Government agencies.

A set of sustainability indicators for Australia covering economic, social and environmental domains was announced by the Minister for Sustainability, Environment, Water, Population and Communities in October 2012. A public report against indicators was released in May 2013. Work on the online directory will be a focus in the second half of 2013.

KEY PERFORMANCE INDICATORS 2012–13 RESULTSA set of sustainability indicators publicly reported. The first public report against the indicators was released on 9

May 2013.

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

Main responsibilities for this outcomeOverseeing the Antarctic Treaty system, Antarctic and Southern Ocean environment protection, Australian Antarctic Territory and Territory of Heard Island and McDonald Islands administration, Antarctic and Southern Ocean research, Antarctic and sub-Antarctic policy development and implementation, and grants for Antarctic and sub-Antarctic research.

Australian Antarctic Division

ObjectivesAustralia’s Antarctic program objectives are based on the region’s strategic, scientific, environmental and potential economic importance for Australia. They include:

Conducting scientific research in Antarctica and the Southern Ocean that supports national policy and environmental management priorities—in particular, taking advantage of the special opportunities the Antarctic offers for globally significant and coordinated research.

Preserving Australia’s sovereignty over the Australian Antarctic Territory, including our sovereign rights over adjacent offshore areas.

Protecting the Antarctic and the Southern Ocean environment, having regard to its special qualities and effects on our region.

Maintaining Antarctica’s freedom from strategic and/or political confrontation. Being informed about and able to influence developments in a region geographically proximate to

Australia. Deriving any reasonable economic benefits from living and non-living resources of the Antarctic and

the Southern Ocean (excluding deriving benefits from mining and oil drilling in the Antarctic Treaty area).

Developing arrangements with other Antarctic programs to enhance cooperation in science and logistics.

Key achievements A major marine science voyage to East Antarctica—Sea Ice Physics and Ecosystems Experiment II

(SIPEX II)—using the RSV Aurora Australis occurred during September to November 2012. The multidisciplinary study was designed to gather information to address major knowledge gaps in our understanding of the connection between sea ice and Southern Ocean ecosystems. This research voyage brought together 51 scientists from nine countries—Australia, the United States, Germany, France, New Zealand, Switzerland, Japan, Belgium and Canada. Scientists measured the physical and biological properties of sea ice on small to regional scales using classical methods and state-of-the-art technology including ice coring surveys, remotely-operated and autonomous underwater vehicles, drifting buoys and instrumented helicopters. The data from this voyage is currently being processed and will enhance our understanding of the role of sea ice in Antarctic climate and ecosystem processes, improve satellite estimates of sea ice thickness and provide input to sea ice models.

In a world first, acoustic technology was used to successfully find, track and study the biggest creature on Earth: the Antarctic blue whale. From 31 January to 17 March 2013 a major project on blue whales—the Antarctic Blue Whale Voyage—was undertaken by a team of 18 scientists from Australia, Chile, New Zealand, United Kingdom, the United States and 13 crew. They headed south from New Zealand to the Ross Sea area aboard the Amaltal Explorer, ultimately demonstrating that non-lethal research methods can be used and it is not necessary to kill whales in order to study them. The scientists on the voyage used a suite of non-lethal

techniques including:

o sightings and samples: 720 cetacean sightings, including humpback, minke, fin and bottle-nosed whales; environmental data; and Antarctic krill samples

o acoustic recordings: 626 hours of acoustic recordings with 26 545 calls of Antarctic blue whales analysed in real time

o photography, biopsy and tagging: 57 blue whale photo identifications, 23 biopsy samples and satellite tagging of two whales.

Australia again played a leading role in the Antarctic Treaty Consultative Meeting (ATCM) and the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR), with progress made on a number of Australia’s key priorities including:

o Australia, France and the European Union put forward a proposal to establish an East Antarctic representative system of marine protected areas. Agreement was reached to convene a special meeting of CCAMLR and its scientific committee in Germany in July 2013 to specifically consider the marine protected area proposals.

o A compliance evaluation procedure was adopted to strengthen the compliance framework for fishing vessels operating in the CCAMLR area. This is a significant development, as this procedure provides, for the first time, a formal mechanism for assessing vessel compliance with CCAMLR’s conservation measures.

o The 2013 ATCM adopted a multiyear strategic work plan and a range of environmental protection priorities.

StrategiesAustralia’s commitment to value, protect and understand Antarctica was furthered by:

Undertaking research into environmental systems and the effects of global climate change to ensure that management of Antarctica and the Southern Ocean is based on sound scientific principles and the best available scientific knowledge.

Developing internationally accepted environmental protection measures through the Antarctic Treaty system and advocating for other nations’ agreement to these measures.

Developing, implementing and managing practical ways to minimise the effects of our own activities. Restoring past sites of human activities. The inaugural Strategic Science in Antarctic conference, held in Hobart in June—a collaboration

between Australia and New Zealand, designed to share information on policy, current research and operational planning in Antarctica and the Southern Ocean.

Creating a Modernisation Taskforce to manage a range of interrelated capability concepts through to business case, funding approval, project approval and implementation to support Australia’s Antarctic operations into the future.

Helping to combat illegal, unreported and unregulated fishing in the Southern Ocean.

The department participated and lead discussion in key forums, including the:

Antarctic Treaty Consultative Meeting (ATCM) Committee for Environmental Protection (CEP) Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) Agreement on the Conservation of Albatrosses and Petrels (ACAP).

Australia continued to undertake scientific research in accordance with the Australian Antarctic Science Strategic Plan 2011–12 to 2020–21 for Australia’s Antarctic program. This was the first year that new projects were undertaken as part of this Science Strategic Plan. This represented a significant shift in emphasis for the science program towards undertaking projects that have a stronger focus on relevance for end users. For this reason, fewer but more targeted projects were undertaken.

The Australian Antarctic Division (AAD) continued to implement the AAD Strategic Directions 2012–2022, which outlines the work that the division has undertaken to support Australia’s Antarctic national interests and implement its responsibilities under the department’s strategic plan and Sustainability Framework.

Evaluation and conclusionsIn 2012–13 a wide range of objectives and key performance indicators were achieved to advance Outcome 3. The department evaluated activities through a comprehensive debrief of Antarctic and sub-Antarctic operations at the end of the season covering science, shipping, aviation, field support, emergency management, medical, safety, environment and human resources. Functional area debriefs were carried out with external stakeholders such as contractors. Learnings were captured from those processes and actions arising were assigned to relevant stakeholders. The work of science projects were considered under the science project assessment process to ensure they supported the objectives of the Australian Antarctic Science Strategic Plan and responded to the overall objectives of the Australian Government in Antarctica.

Results for Deliverables and Key Performance IndicatorsProgram 3.1: Antarctica: Science, Policy and PresenceDELIVERABLES 2012–13 RESULTSDeliver high priority Australian Antarctic scientific research in accordance with the goals of the Australian Antarctic Science Strategic Plan 2011–12 to 2020–21.

This has been achieved. The Australian Antarctic science program undertook a total of 61 science projects. These projects included researchers from 36 Australian institutions collaborating with a further 71 international institutions from 23 countries. Overall, 80 students (53 PhD candidates) were associated with the projects.

Protect the Antarctic environment and undertake work of practical, economic and international significance including compliance with all Australian Antarctic environmental legislation.

This has been achieved. There was full compliance with all Australian Antarctic environmental legislation.

Foundations for new waste treatment facilities have been completed at Davis Station and started at Casey Station. When completed, these facilities will house waste water treatment plants discharging high-quality water to the environment.

Pursue Australia’s Antarctic policy objectives through participation in the Antarctic Treaty system and related fora, including meetings of the:

Antarctic Treaty Consultative Parties and the Committee for Environmental Protection

Commission for the Conservation of Antarctic Marine Living Resources

Scientific Committee on Antarctic Research Council of Managers of National Antarctic Programs Agreement on the Conservation of Albatrosses and

Petrels.

This has been achieved. The department advanced Australian interests through the Antarctic Treaty system and related fora, as listed in the following key performance indicator table.

Administer the Australian Antarctic Territory and the Territory of Heard Island and McDonald Islands, including the authorisation and management of Australian activities in accordance with relevant legislation and environmental protection measures.

This has been achieved. The territories were administered in accordance with relevant legislation and environment protection measures.

Maintain three stations in the Australian Antarctic Territory and one station in the sub-Antarctic, listed below:

Casey Station (Antarctica)

Davis Station (Antarctica)

Mawson Station (Antarctica) Macquarie Island Station (sub-Antarctic).

This has been achieved. The four permanent research stations were maintained, providing a permanent presence and support for research.

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

transport expeditioners and cargo between Australia, Antarctica and sub-Antarctic Islands

support scientific research in Antarctica and the Southern Ocean.

This has been achieved. A total of 186 shipping days on the Aurora Australis supported Australia’s Antarctic program. The shipping schedule included a major marine science voyage at the beginning of the season. A separate dedicated whale research voyage was also conducted on a separately chartered fishing vessel.

Nine intercontinental flights were conducted in support of Australia’s Antarctic program: scheduled flights between

Hobart and Wilkins Aerodrome, one unscheduled medical evacuation flight and one flight positioning Australian expeditioners at the US McMurdo Station before travelling on to Casey Station on US transport or AAD chartered fixed-wing aircraft.

A further eight flights were undertaken through the Antarctic Airlink program to transfer passengers to Casey Station and other Antarctic destinations via the US ice runway at McMurdo Station.

Transport and logistics supported a total of 61 science projects.

DELIVERABLES 2012–13 BUDGET TARGET

2012–13 RESULTS

Participation in key Antarctic Treaty related forums (% attended).

100 100

Number of scientists active in Antarctica and the Southern Ocean during the financial year.

80 136 (this number includes 51 scientists on SIPEX II).

Number of permanent stations operated, maintained and resupplied.

4 4

Number of shipping days in support of Australia’s program.

180 186

Number of return flights between Hobart and Casey stations.

15 9

Fewer flights were scheduled because the runway was unserviceable during January on two previous seasons due to climatic conditions and this cast doubt on whether the runway would be serviceable during January this season.

KEY PERFORMANCE INDICATORS 2012–13 RESULTSInternationally recognised scientific research in Antarctica and the Southern Ocean will be measured by the number of published scientific papers and the number of international institutions collaborating in the Australian Antarctic program.

During the 2012 calendar year, 179 publications were produced within the Australian Antarctic science program. Of these, 80 were published in peer-reviewed international literature and 17 contributed to supporting Australia’s position in key policy fora such as the Antarctic Treaty, the Conservation of Antarctic Marine Living Resources, the Agreement on the Conservation of Albatrosses and Petrels and the International Whaling Commission.

The department has met this key performance indicator since 2009–10.

Enhanced Australian influence in the Antarctic Treaty system including through participation in its various fora as measured by the extent to which Australia’s objectives are achieved and the number of senior positions (e.g. Chairperson or Vice-Chairperson) held by Australia.

In 2012–13 Australia continued to advance its position within the Antarctic Treaty system by active participation in its various elements.

At the 36th Antarctic Treaty Consultative Meeting (ATCM) in Brussels in May 2013, Australia was successful in securing agreement to:

a multiyear strategic work plan for the ATCM an Antarctic Clean-Up Manual several revised protected area

management plans several revised site-specific guidelines two new guidelines for sites frequently visited by

tourists.

The department has met this key performance indicator since 2009–10.

Australia’s Antarctic program complies with all Australian Antarctic environmental legislation. The program’s target is 100 per cent compliance.

100 per cent compliance was achieved. The department has met this key performance indicator since 2011–12.

Effective shipping and air services as measured by the combined number of expeditions and the volume of cargo transported during the year.

There were 480 expeditioners this year, including 90 expeditioners on dedicated marine science/whales voyages. Excluding these marine voyages, 360 expeditioners represent 103 per cent of the key performance indicator target.

Five Aurora Australis voyages were undertaken this season including a major early season marine science voyage. A separate whale research voyage was also undertaken.

Nine direct flights from Hobart to Wilkins Aerodrome were conducted this season, one of which was an unscheduled medical evacuation.

The department has met the volume of cargo key performance indicator since 2010–11.

KEY PERFORMANCE INDICATORS 2012–13 BUDGET TARGET

2012–13 RESULTS

Number of scientific publications produced in the previous calendar year.

150 179

Number of international institutions collaborating in the Australian Antarctic program.

100 71

This number represents a significant shift in emphasis for the science program towards supporting projects that have a stronger focus on relevance for end users. For this reason, this result represents both fewer but more targeted projects and a better understanding of the nature of international collaboration within those projects.

Number of senior positions held on Antarctic Treaty related organisations.

2 2

Australian Antarctic program compliance with Antarctic environmental legislation (%).

100 100 per cent compliance was achieved.

Number of expeditioners transported to Australia’s Antarctic and the sub-Antarctic stations (round trips).

350 480 (including 90 expeditioners on dedicated marine science/whales voyages).

Volume of cargo transported to Australia’s Antarctic and the sub-Antarctic stations (cubic metres).

10 000 11 681

Station utilisation (number of occupied bed nights).

40 000 40 818 (increased winter population at Macquarie Island due to the Macquarie Island Pest Eradication Project).

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

Main responsibilities for this outcomeIn 2012–13 the department contributed to the sustainable and efficient use of Australia’s water resources through delivery of water reforms under the Water Act 2007, the 2004 National Water Initiative, the National Water Quality Management Strategy, and other Council of Australian Governments (COAG) agreed measures.

The Murray–Darling Basin Plan was signed into law on 22 November 2012. The department continues to work with the Murray–Darling Basin Authority (MDBA), basin governments, stakeholders and communities to help implement new Sustainable Diversion Limits specified in the Murray–Darling Basin Plan through water purchase and infrastructure investments, including priority projects agreed under the 2008 Intergovernmental Agreement on the Murray–Darling Basin.

Delivery of independent scientific advice to facilitate robust decision making through the establishment of the new statutory Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development.

Agreement on a scientific methodology and collaborative arrangements for delivery of the bioregional assessments with the Bureau of Meteorology, Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Geoscience Australia.

Water Efficiency Division

Water Reform Division

Office of Water Science

Objectives Help communities and industries, particularly in the Murray–Darling Basin, become more resilient and

sustainable, and better positioned to adapt to future water availability. Help to make irrigation more efficient and ensure that water savings are shared between irrigators and

the environment. Develop an effective and transparent water market. Help urban communities and businesses use water resources more efficiently and better secure their

water supply. Improve the health of rivers, wetlands and freshwater ecosystems. Help to meet the Sustainable Diversion Limit specified in the Murray–Darling Basin Plan by recovering

water for environmental use through water purchase and infrastructure initiatives. Support key bilateral partners to also improve their water management. Improve community confidence in decision making about the impacts of coal seam gas and coal

mining developments on water resources.

Key achievements Murray–Darling Basin Plan

The Murray–Darling Basin Plan (the Basin Plan), was signed into law on 22 November 2012 and commenced operation on 24 November 2012. The department provided advice to the minister in the discharge of his responsibilities in making the Basin Plan.

The department also chaired Commonwealth–state official processes that supported ministerial decision-making and comments on the Basin Plan.

The Basin Plan limits water use at environmentally sustainable levels by setting a Basin-wide Sustainable Diversion Limit, which is the maximum amount of water that can be taken for consumptive use. Under the Basin Plan by 30 June 2019, the equivalent of, 2750 gigalitres of environmental surface water recovery, or equivalent environmental outcomes, is required by 2019. At 30 June 2013, 1658 gigalitres long-term annual average of water has already been secured for the environment.

The Basin Plan also contains a mechanism to adjust the Sustainable Diversion Limit. The adjustment is either by supply measures that use up to 650 gigalitres less water to achieve the same environmental outcomes as delivered by the return of an average of 2750 gigalitres per annum (thereby reducing social and economic impacts), or by efficiency measures that recover and provide more water for the environment with no negative social or economic impacts. More than $1.7 billion in additional funds has been committed to deliver 450 gigalitres of additional water for the environment and to remove constraints to allow the use of that water.

As part of the work to implement the new Basin Plan, an intergovernmental agreement between the Commonwealth and Basin states on implementing water reform in the Murray–Darling Basin, came into effect on 5 June 2013. This agreement builds on the 2008 intergovernmental agreement and supports the objectives of the Murray–Darling Basin Plan. At 30 June 2013 this agreement had been signed by Victoria, the Australian Capital Territory and South Australia. The commencement of this new agreement also represents a major achievement for the department.

Meeting the Sustainable Diversion Limit in the Murray–Darling Basin The Australian Government is helping to meet the Sustainable Diversion Limit specified in the Basin Plan

by recovering water for the environment through investment in infrastructure and water purchases. At 30 June 2013 the volume of water held by the Commonwealth for the environment which helps reduce diversions to the Sustainable Diversion Limits had increased by approximately 136 gigalitres (Long Term Average Annual Yield). A total of 1658 gigalitres towards the 2750 gigalitre gap to the Sustainable Diversion Limits under the Basin Plan has been recovered.

Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development

In November 2012 the Minister for Sustainability, Environment, Water, Population and Communities announced the formation of the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development, a statutory committee enacted through the Environment Protection and Biodiversity Conservation Amendment (Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development) Act 2012, which received Royal assent on 24 October 2012. The Independent Expert Scientific Committee meets monthly and, in accordance with the functions in its Act, provides scientific advice on Coal Seam Gas and Large Coal Mining development proposals as requested by Commonwealth and state regulators regarding water related impacts of such proposals. The Committee also provides advice on the science for bioregional assessments and research priorities.

The department has worked closely with the statutory committee, providing secretariat support and technical advice to assist the statutory committee in meeting its responsibilities. This included providing advice to government regulators on the potential water-related impacts of 23 coal seam gas or large coal mining development proposals.

In collaboration with the Bureau of Meteorology, CSIRO and Geoscience Australia, the department has commenced the Bioregional Assessment Program, finalised the scientific methodology on how bioregional assessments are to be conducted and the proposed technical products which could be delivered, and commenced work on four priority subregions including Namoi, Gloucester, Galilee and Clarence. Substantial stakeholder engagement has been undertaken to introduce the approach and benefit bioregional assessments.

StrategiesIn 2012–13 the department continued to deliver programs to improve the sustainability of Australia’s water resources. Approaches and contributions towards achieving this outcome included:

improving environmental, social and economic outcomes with respect to water by progressing implementation of the 2004 National Water Initiative, including an efficient and effective national water market

assisting the Minister for Sustainability, Environment, Water, Population and Communities in the discharge of his responsibilities in the making of the Murray–Darling Basin Plan

improving the sustainability of the Murray–Darling Basin by progressing the implementation of the 2008 intergovernmental agreement and the water management partnership agreements

improving the sustainability of rural water use by investing in infrastructure with states, industry and communities across Australia, particularly in the Murray–Darling Basin

acquiring water to meet the Sustainable Diversion Limit specified in the Basin Plan securing water supplies for urban communities, cities and towns by funding investment in infrastructure, new technology and smart water use

providing water efficiency information and minimum standards for household water products helping communities and irrigation delivery bodies in the Murray–Darling Basin to plan more effectively

their future water use protecting freshwater ecosystems, rivers and wetlands by assisting states, territories and landowners

to meet their obligations setting the frameworks for water quality management sharing Australian knowledge and practice in water use with key bilateral partners and promoting

learning from international best practice in multilateral bodies.

Evaluation and conclusionsDuring 2012–13 the following reviews of the department’s programs were conducted.

Internal audit report—good start review—water infrastructure programs—Northern Victoria Irrigation Renewal Project, Stage 2 A review of the Northern Victoria Irrigation Renewal Project, Stage 2 (NVIRP2) was conducted by PricewaterhouseCoopers in July 2012. It focused primarily on the planning and early implementation phases of the project.

The review concluded that appropriate governance measures were in place and the water savings project milestones for NVIRP2 and project milestones for NVIRP2 on-farm were met. It found that the project would have further benefited from some improvements in relation to the project plans, risk management, fraud prevention, the development of a monitoring and review framework and the development of an outcome realisation strategy. Some minor delays occurred in the early works of the NVIRP2 project; however, new timelines for completion of NVIRP2 and NVIRP2 on-farm milestones have since been agreed.

Internal audit report—good start review of the Office of Water ScienceA review of the Office of Water Science (OWS) was conducted from August to September 2012 by PricewaterhouseCoopers to ensure that any risks associated with the OWS governance structure and operations, establishment of the Statutory Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development and compliance with statutory and legislative requirements were being adequately addressed. The review identified minor areas of improvement and made recommendations regarding some areas of OWS management. All the recommendations were agreed and appropriate actions were undertaken to address each recommendation.

Internal audit report—review of Stormwater Harvesting and Reuse Grants Round 3PricewaterhouseCoopers conducted an internal audit of this grants round between September and October 2012 as part of the Strategic Internal Audit Plan 2012–13. The audit aimed to determine whether appropriate processes and supporting procedures were in place to facilitate effective management and governance and to assess whether the project management and grant administration practices were consistent with the department’s project management and grant administration frameworks. It focused on how the lessons learnt from earlier rounds were used in the management of the third round of grants.

Overall the review found that the third competitive grants round had been managed in accordance with the requirements stipulated by the department’s project management and grant administration frameworks and that appropriate processes and supporting procedures were developed and utilised to enable the effective management and governance of the project. The audit identified areas where improvement in project management and grant administrative practices should be considered in the future.

Great Artesian Basin Sustainability Initiative phase 3 mid-term reviewAn evaluation of phase 3 of the Great Artesian Basin Sustainability Initiative (GABSI3) was undertaken for the department in February 2013. The evaluation used information gained from a literature review and analysis of

responses from a stakeholder engagement. It focused on:

the efficiency and effectiveness of the Commonwealth and state management/delivery arrangements in place to meet GABSI3 objectives and outcomes

the efficiency and effectiveness of the reporting requirements of the Commonwealth and the contract arrangements/protocols between the Commonwealth and the states

key achievements of GABSI3, progress towards objectives and identification of any deficiencies to date.

Great Artesian Basin coordinating committee reviewSinclair Knight Merz provided the department with an independent review of the role and operating arrangements of the Great Artesian Basin Coordinating Committee (GABCC) in February 2013. The evaluation involved a desktop review of existing arrangements of the committee, extensive stakeholder consultation and an evaluation of future options.

The review found that stakeholders held favourable views of the effectiveness of the GABCC. There were some mixed views on issues such as the appropriateness of its structure, roles and responsibilities.

Australian National Audit Office—audit of grants for the construction of the Adelaide Desalination Plant The Australian National Audit Office (ANAO) conducted an audit to assess the awarding of funding for the construction of the Adelaide Desalination Plant (ADP) against the requirements of the Commonwealth grants administration framework. The audit followed a request from South Australian Senator Simon Birmingham, shadow parliamentary secretary for the Murray–Darling Basin and the environment, to the Auditor General. The audit, submitted in May 2013, specifically looked at:

the assessment by relevant agencies of the merits of awarding Australian Government funding for the construction of the ADP project

the provision of departmental advice to ministersthe development of agreements signed in respect of approved grant funding.

The Auditor made findings in relation to the decision making process and recommended that, for grant spending proposals that result from election commitments or arise other than through a competitive process, the department should promote the achievement of value for money by:

clearly informing decision makers about the extent to which a proposal meets the program assessment criteriaapplying cost–benefit analysis as a key input to its advice on decisions about whether to provide Australian

Government funding towards public infrastructure projectsproviding ministers with other options should they wish to pursue funding for proposals that are not consistent

with the guidelines for the relevant grant program.

Results for Deliverables and Key Performance IndicatorsProgram 4.1: Water ReformDELIVERABLES 2012–13 RESULTSIn delivering Outcome 4 the department will work with states, territories, communities, industry and partner organisations through a range of interlinked programs and activities, including:

Delivering agreed water reforms under the 2004 National Water Initiative, COAG’s national water reform agenda, the Water Act 2007 and the 2008 Intergovernmental Agreement on Murray–Darling Basin Reform.

On 11 April 2013 COAG’s Standing Council on Environment and Water (SCEW) agreed to submit to COAG an enhanced water reform agenda building on the National Water Initiative, including a work plan for the next five years.

The SCEW released a consultation regulation impact statement on the potential regulation of water market intermediaries. The statement reviewed options to manage the risk of any misconduct by intermediaries to the integrity of Australian water markets.

The SCEW also approved modules 1 to 4 of the Aquatic Ecosystems Toolkit to identify, classify, delineate and describe high ecological value aquatic ecosystems. (Module 5 Integrated Ecological Condition Assessment Framework is under development.)

The multijurisdictional water quality policy subgroup under the COAG Water Thematic Oversight Group was established to oversee implementation of the strategic directions for the future of the National Water Quality Management Strategy.

On 22 November 2012 the Basin Plan, a legislative instrument under the Water Act 2007, was adopted to provide an integrated strategic framework for water reform to ensure that the Murray–Darling Basin’s water resources are managed by all levels of government in a coordinated and sustainable way.

Implementation of the Murray–Darling Basin Plan is supported by an Intergovernmental Agreement and National Partnership Agreement which entered into force on 5 June. At 30 June it has been signed by the Commonwealth, Victoria, South Australia and the Australian Capital Territory.

To assist in the implementation of Murray–Darling Basin reform, two amendments to the Water Act were made in 2012–13. The Water Amendment (Long-term Average Sustainable Diversion Limit Adjustment) Act 2012 enables the long-term average Sustainable Diversion Limits set by the Basin Plan to be adjusted within clearly defined limits without invoking the formal Basin Plan amendment process, and the Water Amendment (Water for the Environment Special Account) Act 2013, which amends the Act to establish the Water for the Environment Special Account pursuant to section 21 of the Financial Management and Accountability Act 1997.

On 10 October 2012 the Minister for Sustainability, Environment, Water, Population and Communities made amendments to the Water Market Rules 2009 and Water Charge (Termination Fees) Rules 2009 to address technical issues that arose during implementation. The amendments provide clarity for irrigation infrastructure operators and irrigators in the Murray–Darling Basin about how the rules operate.

Advising the Minister on tabling of the Murray–Darling Basin Plan (the Basin Plan) in Parliament.

The department undertook significant work with basin governments and the Murray–Darling Basin Authority to help deliver the Basin Plan that was adopted on 22 November 2012.

It also worked with basin governments to develop the Intergovernmental Agreement on Implementing Water Reform in the Murray–Darling Basin 2013 and an associated national partnership agreement, which are now in effect.

Investing in infrastructure with state and territory governments, industry and communities across Australia for urban and rural community water infrastructure.

The National Urban Water and Desalination Plan invested $116 million in urban water infrastructure during 2012–13.

The National Water Security Plan for Cities and Towns invested $56 million to upgrade older water systems, install new infrastructure and support practical projects that save water or reduce water losses during 2012–13.

The Strengthening Basin Communities Program invested in over 57 projects across the Murray–Darling Basin, enabling local government authorities and urban water providers to support projects that improve water security by reducing demand on potable water supplies.

Developing and adopting new technologies to improve water use efficiency and ensure greater water security.

There are currently 23 research projects underway at the Australian Centre of Excellence in Water Recycling which was established in 2009–10.

There are currently 42 research projects underway at the National Centre of Excellence in Desalination which was established in 2009–10.

The bulk of the research projects are due for completion before June 2016.

Funding communities and irrigation providers to support more efficient water management, with water savings to be shared between the communities, irrigators and the environment.

The Sustainable Rural Water Use and Infrastructure Program (SRWUIP) is a national program investing in rural water use, management and efficiency, including water knowledge and market reform. In 2012–13, $566.6 million was invested in projects under this program.

At 30 June 2013, $5.4 billion had been committed nationally, with over $5.2 billion committed to projects within the Murray–Darling Basin. More than $1.75 billion has been expended since the commencement of the program in 2007–08.

At 30 June 2013, 344 gigalitres (long-term average annual yield – LTAAY) had been recovered from SRWUIP projects which will count towards the

reduction in surface water diversions needed to reach the Sustainable Diversion Limit. This included an additional 72 GL LTAAY that was recovered from SRWUIP projects during 2012–13. A further 34 gigalitres (including groundwater) of environmental water had been secured from SRWUIP projects.

Help to meet the Sustainable Diversion Limit specified in the Murray–Darling Basin Plan by recovering water for environmental use through water purchase and infrastructure initiatives.

At 30 June 2013 investments made through Restoring the Balance in the Basin and SRWUIP for water infrastructure projects had recovered 1480 gigalitres (Long-Term Average Annual Yield (LTAAY)) which will count towards the Sustainable Diversion Limit under the Basin Plan. In total, 1658 gigalitres had been recovered by Australian and State Government programs towards the Sustainable Diversion Limit reduction target.

Help urban communities and businesses use water resources more efficiently and better secure water supplies for cities and towns by investing with states, territories and communities in upgraded infrastructure.

Under the National Urban Water and Desalination Plan $116 million was invested in urban water infrastructure during 2012–13. These investments in desalination, water recycling and stormwater harvesting and re-use contribute to securing the supply of water for cities and towns by upgrading infrastructure and diversifying water sources.

Under the National Water Security Plan for Cities and Towns, investments focused on delivering improved water recycling, re-use and metering infrastructure in cities and towns.

Completing the design and commence building of the Common Registry Solutions under the National Water Market Systems Program.

A project implementation partner was contracted on 3 September 2012 to commence the Common Registry Solutions. The first stream of work under the contract—a solutions architecture design developed in collaboration with jurisdictions—was completed on 30 June 2013.

Supporting key bilateral country partners to improve their water management and promote Australia’s interests in international bodies.

The department hosted a number of international delegations during 2012–13, including a senior Indian delegation attending the Indian–Australian Joint Working Group on Water Resource Management from 29 April to 3 May 2013, and the 3rd Australia–China High Level Water Policy Meeting in May 2013 in Canberra. These meetings further promoted high-level water policy linkages and information exchange on water management issues of mutual interest.

Developing a National Wetlands Policy Statement.

The department is working with states and territories to develop the policy. Input was sought from peak national organisations, professional associations and researchers through a questionnaire and a stakeholder forum held in May 2013. A consultation document will be available for public review in 2013–14.

Implementing the findings of the National Water Quality Management Strategy Review in conjunction with the states and territories.

Following the review of the National Water Quality Management Strategy (NWQMS), states and territories supported the proposed strategic directions for the future of the NWQMS. Implementation of the strategic directions commenced in 2012–13 will continue during 2013–14 and will be overseen by the recently established multijurisdictional Water Quality Policy Sub Group under the COAG Water Thematic Oversight Group.

Continuing to work with states, territories, landowners and community groups to improve the management of rivers, wetlands and freshwater ecosystems particularly those of national and international importance.

To enhance the implementation of the Ramsar Convention on Wetlands in Australia the department published Australian Ramsar Site Nomination Guidelines and a series of wetland fact sheets, and completed a number of ecological character descriptions and Ramsar information sheets for Australia’s wetlands of international importance.

Australia attended and contributed to the Ramsar Conference of the Contracting Parties in July 2012 and the Standing Committee of the Ramsar Convention in April 2013. The department provided advice on 63 referrals under the EPBC Act relating to Ramsar wetlands.

The department worked with the South Australian Government to designate Piccaninnie Ponds Karst Wetlands as Australia’s 65th Ramsar site.

The department funded the Great Artesian Basin Water Resource Assessment, a $6.25 million research project undertaken by CSIRO and Geoscience Australia to update the understanding of the geology and hydrogeology of the Great Artesian Basin.

In the first three years of the third five-year phase of the Great Artesian Basin Sustainability Initiative (funded jointly by the Australian, Queensland, New South Wales and South Australian Governments) 116 bores have been controlled, 2826 kilometres of open bore drains have been deleted, 4216 kilometres of piping have been installed and 27 674 megalitres of water per

annum have been recovered.

On 27 March 2013 the two and a half year Great Artesian Basin Research Assessment was released.

The Waterbirds in the Lake Eyre Basin (1983–2012) Report, together with data obtained from ongoing monitoring of hydrology, fish and water quality indicators as part of the Lake Eyre Basin Rivers Assessment Implementation Plan, will provide important input into the next assessment of the condition of the rivers and catchments of the Lake Eyre Basin.

Commissioning of bioregional assessments for priority regions to ensure understanding of the potential impacts of coal seam gas and large coal mining development. A standard approach will ensure compatibility across bioregional assessments.

The methodology for bioregional assessments of the impacts of coal seam gas and coal mining development on water resources was developed, peer reviewed (both nationally and internationally) and endorsed by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development. This methodology will ensure a scientifically robust and transparent process is undertaken, providing consistency across bioregional assessments while enabling appropriate customisation to represent the differing subregions’ circumstances.

Interagency collaboration, involving the department, Bureau of Meteorology, CSIRO and Geoscience Australia, was formally agreed and work commenced on detailed planning for all subregions.

Projects to identify water-dependent assets were undertaken by 29 natural resource management bodies across three states, providing local data which forms the basis of bioregional assessments.

Progress commenced on technical products for four priority subregions including Namoi, Galilee, Gloucester and Clarence.

Work on a prototype for an information platform to house the technical products for bioregional assessments was advanced.

Commissioning a research program to improve knowledge of the potential impacts of coal seam gas and coal mining on water resources on behalf of the statutory committee.

The statutory committee considered knowledge gaps and potential research priorities. The agreed priorities are designed to inform future research investments and projects commissioned by the government investigating the potential impacts of coal seam gas and coal mining on water resources.

Progress was made on the 31 agreed research and knowledge projects undertaken on the advice of the Interim Independent Expert Scientific Committee.

The department will continue to manage the delivery of these projects through to completion, expected to be in 2013 and 2014.

Facilitating advice provided by the statutory committee on relevant EPBC Act and state referrals, in accordance with the National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development.

The department assisted in the development of the Independent Expert Scientific Committee Information Guidelines which provide an understanding of the relevant water related information needed to provide robust scientific advice on proposals relating to the development of coal seam gas and large coal mines. These guidelines were published on the Committee’s website in February 2013.

The department also facilitated the referral of projects from Commonwealth and Queensland government regulators and developed supporting information to assist the committee in its deliberations on 23 proposed coal seam gas or large coal mining development proposals.

Communicating and making publicly accessible the role of the Committee and its findings.

In collaboration with the committee, the department developed, established and maintains the Committee’s website: www.environment.gov.au/coal-seam-gas-mining.

This publicly accessible website includes a fact sheet on the statutory Committee’s role: www.environment.gov.au/coal-seam-gas-mining/pubs/committee-factsheet.pdf

The department regularly updates the website with information on the Committee’s meeting research priorities and its advice on development proposals and bioregional assessments.

DELIVERABLES (CONTINUED) 2012–13 BUDGET

2012–13 RESULTS

TARGETIndependent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development meetings held.

11 The statutory Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (Statutory Committee) has met monthly since it was established in November 2012, following the delayed passing of the enabling legislation. A total of seven meetings of the statutory committee had been held to June 2013.

Before the enabling legislation was passed, the Interim Independent Expert Scientific Committee on Coal Seam Gas and Coal Mining (Interim Committee) met monthly.

Percentage of research projects commenced within 60 days of approval by the minister.

100 This has been achieved: 100% of research projects were commenced within 60 days of approval by the minister.

These research projects were identified, by the Interim Committee, as significant in addressing key knowledge gaps of the impacts of coal seam gas and coal mining developments on water resources.

The department continues to proactively manage the implementation of these projects through to their conclusion in 2014.

KEY PERFORMANCE INDICATORS 2012–13 RESULTSTotal water recovery from water purchases, contracted efficiency measures and state activities, exceeds 1560 GL towards meeting the Sustainable Diversion Limit under the Basin Plan.

At 30 June 2013 the total water recovery which helps reduce diversions to the Sustainable Diversion Limits is 1658 gigalitres LTAAY.

Completion of 28 urban water projects by 30 June 2013 that yield a total, in excess of 110 GL per year, of additional water supply capacity.

Twelve projects were completed during 2012–13. These projects have the combined capacity to yield in excess of 180 GL per year.

Under the National Water Security Plan for Cities and Towns, 49 projects were completed in 2012–13 with a combined capacity to yield 25 GL per year of potable water savings.

By 30 June 2013 bioregional assessments to determine the potential impacts of coal seam gas and large coal mining development on water resources, have commenced for five priority regions.

During 2012–13 work was undertaken by 29 natural resource management bodies to identify water-dependent assets, which will feed into work on the five priority regions.

The methodology for bioregional assessments of the impacts of coal seam gas and coal mining development on water resources was finalised in the final quarter of 2012–13, providing the necessary basis for commencing work.

Overarching contractual arrangements have been agreed for the program, and technical work by partner agencies has commenced for some subregions.

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

Main responsibilities for this outcomeAdministering relevant provisions of the Environment Protection and Biodiversity Conservation Act 1999 to ensure the identification and conservation of Australia’s heritage, threatened species and ecological communities, migratory species, Commonwealth marine areas and internationally traded flora and fauna and related biodiversity by:

Identifying and listing threatened species and ecological communities. Assessing the potential heritage values of places for possible inclusion on the

Commonwealth, National or World Heritage Lists. Developing and implementing strategies, conservation advice

and programs. Providing leadership for the conservation and sustainable use of Australia’s unique and

significant fauna and flora species. Managing the department’s engagement on biosecurity matters. Issuing permits and regulating the import and export of wildlife under

the EPBC Act. Enhancing Australia’s capacity to ensure the protection, conservation and sustainable

management of wildlife, both domestically and internationally. Helping countries in Australia’s region to implement the World

Heritage Convention.

Wildlife, Heritage and Marine Division

Administering relevant provisions of the EPBC Act to ensure the protection of the environment, especially matters of national environmental significance, through assessments of environmental impacts of activities; strategic assessments; and compliance, investigation and enforcement activities.

Managing sea dumping in accordance with the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 and 1996 Protocol Thereto (London Convention and Protocol) through the Environment Protection (Sea Dumping) Act 1981.

Providing information and tools to raise awareness of and compliance with environment protection law.

Environment Approvals and Compliance Division

Supervising uranium mining in the Alligator Rivers Region, which includes Kakadu National Park in accordance with the provisions of the Environment Protection (Alligator Rivers Region) Act 1978.

Supervising Scientist Division

Providing funding to support heritage protection, conservation and interpretation. Biodiversity Conservation Division

ObjectivesWildlife, Heritage and Marine Division

Identify and protect Australia’s natural, Indigenous and historic heritage places. Identify and list nationally threatened species and ecological communities (ecosystems) and prepare

conservation advice and recovery plans to mitigate threats and facilitate direct protection and conservation efforts (the Threatened Species Scientific Committee provides scientific advice on these matters).

Regulate international trade in Australian native species, species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the import of live animals.

Promote a cooperative approach to protecting and managing the environment and heritage involving

governments, the community, landholders and Indigenous peoples.

Environment Approvals and Compliance Division Administer environmental regulation under the Environment Protection and Biodiversity Conservation

Act 1999 (EPBC Act), Environment Protection (Sea Dumping) Act 1981 (Sea Dumping Act), the Historic Shipwrecks Act 1976, the Australian Heritage Council Act 2003 and the Aboriginal and Torres Strait Islander Heritage Protection Act 1984.

Provide for the protection of the environment, especially matters of national environmental significance (MNES).

Improve the delivery of regulatory services under the EPBC Act. Assist governments, businesses and communities to value biodiversity and ecosystems and comply

with environmental legislation. Improve sustainability in priority high-growth areas. Use regulation and compliance activities, cooperative partnerships with state and territory

governments, and provision of information to improve awareness of the EPBC Act to protect and conserve the environment.

Supervising Scientist Division Protect the Alligator Rivers Region from the impact of uranium mining under the Environment

Protection (Alligators Rivers Region) Act 1978.

Biodiversity Conservation Division Provide funding to support heritage protection, conservation and interpretation.

Key achievements In June 2013 the 37th session of the World Heritage Committee meeting approved a boundary

modification to the Tasmanian Wilderness World Heritage Area, adding over 170 000 hectares, and considered a state party report on the state of conservation of the Great Barrier Reef World Heritage Area.

The department administered $8.8 million (GST exclusive) over three years to 232 projects to protect, conserve and enhance the values of significant historic heritage under the 2012–13 Your Community Heritage program. The program supports communities to celebrate their local heritage, and share their local stories and traditions that together tell our national story.

The Indigenous Heritage Program provided funding for 53 projects across the country with a total value of $4.9 million (GST exclusive) over three years to support the identification, conservation and promotion of Indigenous heritage.

The department supported the Australian Government’s efforts to better define, protect and communicate the ‘outstanding universal value’ of the Great Barrier Reef through a range of activities. This included progressing research on the aesthetic and geological values of the property, and the development of guidance on outstanding universal value for proponents of actions under the EPBC Act. Interim guidelines on the Outstanding Universal Value of the Great Barrier Reef World Heritage Area—for Proponents of Actions is available at: www.environment.gov.au/epbc/publications/gbr-interim-guidelines.html.

In October 2012 the Government convened an independent expert scientific panel to prepare a report on the nature and extent of the natural heritage attributes of Cape York Peninsula that may be of potential outstanding universal value. Community consultation was undertaken as part of the preparation of a nomination for World Heritage listing, subject to Traditional Owner consent. A report assessing the outstanding universal values of the Dampier Archipelago in Western Australia was also prepared for consideration by the Australian Heritage Council.

Six ecological communities were incorporated in the national list of threatened ecological communities, including the first-ever marine ecological community—the Giant Kelp Marine Forests of South-East Australia. There are now 62 threatened ecological communities listed under the EPBC Act, representing more than 150 ecological communities (or equivalent) recognised as threatened by states and territories, and over 4.6 million hectares of protected environment.

Twenty-six recovery plans, a mix of revised and new recovery plans, were made or adopted under the EPBC Act, identifying and prioritising recovery actions for 41 listed threatened species and three listed threatened ecological communities. These include the Fitzgerald Biosphere Recovery Plan—a regional recovery plan covering 11 threatened plant species in the south-west of Western Australia and one of seven such regional plans now in force under the EPBC Act.

As part of the 2013 Anzac Day celebrations, the Minister for Sustainability, Environment, Water, Population and Communities made a declaration to protect the MV Limerick under the Historic Shipwrecks Act 1976, commemorating the contribution and sacrifice of merchant seamen during World War II.

The department continued to deliver the Kokoda Initiative under the Second Joint Understanding on the Owen Stanley Ranges, Brown River Catchment and Kokoda Track Region (2010–15). This bilateral agreement with Papua New Guinea works towards the sustainable development of the region and protection of its special heritage values. The department also supported the Australian Government’s provision of assistance to Pacific Island countries for World Heritage activities, including the February 2013 launch of the Pacific Heritage Hub to strengthen heritage management in the region.

At the 16th meeting of the Conference of the Parties to the CITES held in Bangkok, Thailand in March 2013, nine Australian species proposals were adopted, including stronger protection for the freshwater sawfish (Pristis microdon). The meeting also made several significant decisions to improve the regulation of the trade in marine species, including the listing of five shark and two manta ray species (Manta birostris and M.alfredi) on Appendix II of the convention.

In 2012–13 the department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act. Eighty-one proposals were approved subject to conditions, and one was determined to be clearly unacceptable. Key projects included:

o The Alpha Coal project undertaken by GVK Hancock Coal Pty Ltd in the Galilee Basin, which includes an open-cut coal mine in central Queensland and a 495 kilometre railway line to Abbot Point.

o The South of Embley Bauxite Mine and Port Development Project undertaken by RTA Weipa Pty Ltd, which will construct and operate a bauxite mine and port development, including associated shipping activities, near Weipa on the western side of Cape York, Queensland.

o The Great Keppel Island project undertaken by GKI Resort Pty Ltd (a subsidiary of Tower Holdings Pty Ltd), which will construct and operate a tourism and marina development on Great Keppel Island, Queensland.

o The Anketell Point Iron Ore Processing and Export Port Project undertaken by API Management Pty Ltd, which will develop and operate a major deepwater iron ore port in the Pilbara region of Western Australia.

The Environmental Offsets Policy, part of the national environment law reform agenda, was released by the department in October 2012. It provides guidance on the role of offsets in environmental impact assessments (EIAs), and how the department considers the suitability of a proposed offset. It aims to improve environmental outcomes through the consistent application of best practice offset principles, provide more certainty and transparency and encourage advanced planning of offsets.

The department released the Environmental Impact Assessment Client Service Charter in May 2013. The charter outlines the department’s commitments when undertaking EIAs under the EPBC Act. It provides clarity and guidance about the service that stakeholders can expect during the EIA process and outlines how the Australian Government will work with state and territory assessment agencies.

The department released the Strategic Assessment Prospectus in May 2013. This prospectus seeks input from industry and states regarding potential new strategic assessments.

The department improved awareness of the EPBC Act to protect and conserve the environment by using regulation and compliance activities, cooperative partnerships with state and territory governments and provision of information.

During the 2012–13 wet season the maximum total uranium concentration measured downstream from the Ranger Mine was 0.19 micrograms per litre. This value is approximately three per cent of the local ecotoxicologically derived limit of 6 micrograms per litre, and approximately one per cent of the 20 micrograms per litre guideline for potable water.

In 2012–13 an ecotoxicologically derived magnesium pulse exposure limit was developed that will

provide the basis for a significant revision of the statutory water quality monitoring program at Ranger mine utilising leading practice continuous monitoring technology.

The Minister for Sustainability, Environment, Water, Population and Communities added Indigenous heritage values to the existing listing of the Wet Tropics of Queensland and also added the Western Tasmania Aboriginal Cultural Landscape to the National Heritage List, bringing the total number of places in the list to 98.

StrategiesThe Supervising Scientist The Alligator Rivers Region, some 220 kilometres east of Darwin, contains a number of former, current and potential uranium mines, including:

Ranger, which is currently in operation Nabarlek, where mining has ceased and rehabilitation is underway Jabiluka, which has been in long-term care and maintenance since December 2003 the Koongarra Project Area, which was incorporated into the surrounding Kakadu National Park World

Heritage Area by the United Nations Educational Scientific and Cultural Organization (UNESCO) World Heritage Committee in June 2011 and was incorporated into Kakadu National Park in February 2013.

The first three sites listed above are not part of Kakadu National Park. However, a number of small former uranium deposits that were mined during the 1950s and 1960s are located in what is now the southern portion of Kakadu National Park. The Supervising Scientist Division monitors and conducts research into environmental management at these sites.

To achieve its objectives, the Supervising Scientist Division: Plays a key role in supervising the environmental aspects of regulatory arrangements applying to

uranium mining within the region. Works closely with the Northern Territory Government’s regulatory body and other stakeholders to

ensure that regulatory decisions are based on the best available scientific knowledge. Regularly audits and inspects existing and former uranium mine sites within the region. Undertakes detailed, independent scientific investigations of incidents, breaches of approval conditions

and environmental requirements of uranium mining operations. Oversees the regulation of uranium mining in the region to ensure that the government and community

can be confident that regulation is meeting expected standards. Undertakes an ongoing independent, comprehensive, chemical, biological and radiological monitoring

program designed to detect any potential effects of uranium mining in the region. Undertakes targeted scientific research to optimise the monitoring programs and to provide early

warning of any potential effects of uranium mining on the environment of the region.

Figure 1: Map of the Alligator Rivers Region, Northern Territory

Source: Supervising Scientist Division, 2011.

Heritage Grants Programs The department administers a range of grants programs to provide funding and advice to support heritage protection, conservation and interpretation.

Your Community Heritage program The Your Community Heritage program is aimed at helping the community tell its heritage stories, enhancing community engagement in heritage, bringing heritage online, protecting national heritage assets, and preserving and understanding skills at risk of being lost.

In 2012–13, $8.8 million (GST exclusive) over three years was provided to 232 projects to protect, conserve and enhance the values of significant historic heritage; enhance the resilience of heritage places to withstand natural disasters such as floods, bushfires, storms and earthquakes; and contribute to the management and the long-term sustainability of significant historic heritage sites.

In 2012–13 the program comprised the following subprograms:

Protecting National Historic Sites Recovering from Natural Disasters Commemorating Eminent Australians Sharing Community Heritage Stories Celebrating Community Heritage.

Indigenous Heritage Program The department administers the Australian Government’s Indigenous Heritage Program—an ongoing competitive grants program providing $3.645 million annually to support the identification, conservation and promotion of Indigenous heritage. The program funds projects that aim to conserve or promote the Indigenous heritage values of places.

In 2012–13 the Indigenous Heritage Program provided funding totalling $4.9 million (GST exclusive) over three years for 53 projects across Australia including two strategic projects for the Australian World Heritage Indigenous Network and a project that holds commemorative ceremonies and erects headstones for Indigenous veterans.

Across Australia nine projects were funded in New South Wales; four in the Northern Territory; 14 in Queensland; seven in South Australia; five in Victoria; and 15 in Western Australia. These projects not only conserve and promote Indigenous heritage but also contribute to Closing the Gap on Indigenous Disadvantage.

Recipients include shire councils, land councils, Elders groups, National Trust groups and educational institutions.

Environmental impact assessmentThe department works closely with proponents; state, territory and local governments; and other stakeholders, including consultants, to ensure that the requirements of the environmental assessment process under the EPBC Act are understood. Proponents are encouraged to engage with the department at an early stage of developing their project so that EPBC Act related issues can be highlighted and taken into account in a project’s planning.

Projects that most effectively achieve regulatory certainty under the EPBC Act are consistently characterised by:

Proponents engaging early with the department to ensure that EPBC Act obligations are fully understood and taken into account.

Proponents seeking to address EPBC Act requirements, where appropriate, at the same time as state or territory requirements, to maximise the opportunity to use accredited state and territory assessment processes where possible.

Projects using environmentally conscious design that avoids or minimises impacts such as habitat clearing.

Proponents providing high-quality information to regulatory agencies early in the assessment process. Proponents engaging positively with the community. Project outcomes clearly maintaining and enhancing the environment, including, where appropriate,

providing additional habitat for threatened species.

Proponents are responsible for satisfying regulatory requirements under the EPBC Act before taking their proposed action. The proponent can initiate this process by submitting a referral for a determination on whether a proposed action will have or is likely to have a significant impact on matters of national environmental significance (MNES). If a significant impact on MNES is likely and further assessment necessary, the proposed action will be determined to be a controlled action and approval by the minister (or their delegate) will be required.

The EPBC Act provides for a case-by-case assessment that is most appropriate to the complexity and scale of the project by either the Australian Government or an accredited state and territory process. (See also ‘Bilateral agreements and administrative arrangements’).

Reform agendaThe Australian Government is working to deliver a simpler environmental protection system that has clearer standards and provides for faster decisions.

More specifically, in 2012–13 the department:

Continued improvement in administration of environmental law. Implemented a client service charter for proponents (refer to the Legislation reporting chapter in this

report, section 2.2: Environmental impact assessment). Produced more guidance on species and ecological communities (refer to the Legislation reporting

chapter in this report, section 1.1: Threatened species, ecological communities and migratory species). Continued to work closely with states, territories and industry to increase the use of strategic

assessments (refer to the Legislation reporting chapter in this report, section 2.1: Strategic assessments).

Reviewed assessment bilateral agreements and administrative arrangements to improve efficiency and reduce duplication (refer to the Legislation reporting chapter in this report, section 2.1: Bilateral agreements).

Strategic assessments In 2012–13 strategic assessments continued to break new ground in promoting ecologically sustainable development and facilitating adaptive management methodologies. These approaches are collaborative between tiers of governments and have the capacity to better align Commonwealth and state/territory processes while achieving ecological sustainability through consideration of environmental assets at the landscape scale. Strategic assessments also provide a tool for reducing regulatory burden by considering Commonwealth and state/territory environmental planning issues in a single assessment process.

Under section 146 of the EPBC Act, the minister may agree to assess the impacts of action under a policy, plan or program, including, but not limited to:

regional-scale development plans and policies large-scale industrial development and associated infrastructure fire, vegetation, resource or pest management policies, plans or programs water extraction and use policies industry sector policies.

Within this context a strategic assessment can cover any number of projects that would otherwise need to be separately assessed under the EPBC Act.

Strategic assessments give greater certainty to developers, landholders, planners, industry, governments and the community, as they allow for individual future developments to proceed without further assessment if they are consistent with the approved policy, plan or program.

In 2012–13 the Australian government entered into four new strategic assessments: Urban development at Gungahlin, Australian Capital Territory; Biodiversity plan for coal mining in the Upper Hunter Valley, New South Wales; BHP Billiton iron ore expansion for the Pilbara, Western Australia; and Hamersley Iron Pty Ltd (Rio Tinto) iron ore expansion for the Pilbara, Western Australia.

In 2012–13, the urban development at Gungahlin, Australian Capital Territory was endorsed; the Midlands Water Scheme, Tasmania was approved; and the development at Heathcote Ridge, New South Wales was endorsed and approved, all under a strategic assessment.

Work also continued on five strategic assessments: Great Barrier Reef World Heritage Area, Queensland; Perth and Peel regions, Western Australia; Melbourne urban growth corridors, Victoria; Browse Basin LNG Precinct, Western Australia; and fire management policy, South Australia.

Bilateral agreements and administrative arrangements A key function of bilateral agreements is to reduce duplication of environmental assessment and regulation between the Commonwealth and the states and territories. Bilateral agreements allow the Commonwealth to accredit particular state and territory assessment processes. To be accredited, state and territory processes need to meet best practice criteria set out in the EPBC Act and its regulations. If proposed actions are covered

by an assessment bilateral then they are assessed under the accredited state and territory processes. After assessment, the proposed actions are approved by the minister under the EPBC Act. There are currently bilateral assessment agreements with all states except New South Wales.

Preserving the marine environment from pollutionThe Sea Dumping Act fulfils Australia’s international obligations under the London Convention and Protocol, which aims to protect and preserve the marine environment from pollution, especially from dumping at sea. During 2012–13 the department issued 10 sea dumping permits and nine variations.

Species and ecological community listings and informationThe Australian Government has formal and informal partnerships with all states and territories to improve the alignment of state, territory and national lists of threatened species.

Work is also progressing in some states to assess ecological communities that have been identified as the highest priority for potential listing as a matter of national environmental significance under the EPBC Act. During 2012–13 the department completed an assessment of one state-endemic ecological community in Western Australia and one in South Australia.

The minister decides whether to list a species or ecological community as threatened under the EPBC Act upon consideration of advice from the Threatened Species Scientific Committee (TSSC).

In 2012–13, based on assessments completed by the TSSC, 13 species and 6 ecological communities were listed and 14 species were transferred from one category of threat to another. At 30 June 2013 a further 120 species and 15 ecological communities were having their threat status assessed. More detail on the listings is provided in the report on the operation of the EPBC Act.

Permit approvals and wildlife managementThe international movement of wildlife and wildlife products is regulated under the EPBC Act. The Act provides for the regulation of export trade in specimens derived from regulated native species, imports and exports of species listed under the CITES, and the import of regulated live animals. Export approval can be given for commercial use provided the specimens have been derived from an approved captive breeding program, artificial propagation program, aquaculture program, wildlife trade operation, or a wildlife trade management plan.

Heritage listingsIn 2012–13 the department continued to support the protection, conservation and presentation of Australia’s heritage of outstanding universal value in consultation and cooperation with the relevant states:

A four-year, $20 million project that will help conserve the values of the Royal Exhibition Building and Carlton Gardens.

The department provided advice in relation to the review of the Strategic Overview for Management of the Gondwana Rainforests of Australia World Heritage Area.

In consultation with stakeholders the department developed Draft Referral Guidelines for National Heritage Listing of the West Kimberley and West Kimberley National Heritage Place – A Guide for Landholders.

In 2012–13 the department continued to process 22 applications made by Indigenous Australians under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 from previous years and received seven new applications, of which four were not made validly under the Act. No declarations were made.

The department provides secretariat services for the Australian Convict Sites Steering Committee. In August 2012 the department hosted a committee meeting in Canberra and the committee subsequently met via teleconference three times to discuss matters of relevance to the 11 sites that together form the Australian Convict Sites World Heritage Property. The committee is currently developing a strategic plan and a collaborative online presence.

In April 2013 an analysis on views and settings was published to inform development in Parramatta CBD that might be considered significant with regard to the World Heritage and National Heritage values of Old Government House and Domain.

The Australian Heritage Council is pursuing opportunities to engage with external organisations with the expertise and resources to undertake research that can be used to inform National Heritage place

assessments on the council’s work plan. These opportunities are currently being explored for the Australian Cornish mining heritage sites—Burra and Moonta, South Australia—and the Murtoa No. 1 Grain Store, Victoria.

In 2012–13 the Australian Heritage Council completed its assessment of the Tarkine and provided advice to the Minister for Sustainability, Environment, Water, Populations and Communities. After consideration of the social and economic impacts of a listing on the Tasmanian economy, the minister decided to list the Aboriginal values of the area and added the Western Tasmania Aboriginal Cultural Landscape to the National Heritage List.

Compliance and enforcementThe department takes a strategic approach to ensure that EPBC Act compliance and enforcement is consistent, efficient and effective across the marine and terrestrial environments. This approach includes the development and maintenance of relationships with other compliance and enforcement agencies of the Commonwealth, states and territories.

The EPBC Act contains a range of enforcement mechanisms for managing suspected or identified instances of non-compliance and for reviewing the compliance of referred projects. These mechanisms include environmental audits, civil or criminal penalties for contraventions of the EPBC Act, and remediation orders and determinations to repair or mitigate environmental damage.

The department’s Compliance Audit Plan comprises a random audit program and a strategic risk-based audit program to verify compliance with EPBC Act conditions of approval and particular manner requirements and permits granted under the Sea Dumping Act. The Compliance Audit Plan also evaluates the effectiveness of the conditions and requirements for protecting matters of national environmental significance.

The department has a program of actively monitoring projects post-approval to ensure adherence to conditions attached to approvals, and fulfilment of requirements attached to particular manner decisions.

To further encourage compliance, the department engages in cooperative partnerships to build public awareness of the EPBC Act. Training on awareness and use of EPBC Act compliance and enforcement powers was provided internally and to a number of co-regulator and partner agencies.

Further information on the department’s compliance and enforcement activities under the EPBC Act is found in the Legislation reporting chapter.

In 2012–13 the department provided information to the general public to raise understanding of the EPBC Act and its operations, and policies and guidelines to provide guidance for stakeholders in determining whether a proposed action is likely to have a significant impact on a species or ecological community listed under the EPBC Act. Departmental publications produced in 2012–13 are listed in Appendix C of this report.

The department continues to work closely with partner agencies to manage wildlife compliance by sharing intelligence and resources. This has included the state and territory wildlife authorities, the Australian Customs and Border Protection Service, the Australian Federal Police, state and territory police, CITES management authorities in other countries, Interpol and some non-government organisations.

The department considered all allegations of non-compliance under Part 13A of the EPBC Act.

Data that informs seizure and caution notices under Part 13A of the EPBC Act is provided by the Australian Customs and Border Protection Service. Administrative delays of weeks or months is often experienced before the data reaches the department’s database. Therefore, an accurate representation of all seizure notices to 30 June 2013 cannot accurately be reported at this time. Nonetheless, the department advises that at the time of writing, 1 August 2013, 2097 seizure and caution notices were issued by Australian enforcement authorities for the import and/or possession of suspected CITES specimens without appropriate permission under Part 13A of the EPBC Act.

The department continued to provide information sessions to the Australian Customs and Border Protection Service to assist with their enforcement of CITES at Australian borders. Training for new recruits and in-service training has been delivered in Darwin, Perth, Adelaide and Melbourne.

The department continued as Chair of the Coalition Against Wildlife Trafficking.

Evaluation and conclusionsThe Supervising Scientist The adequacy and content of research activities in the Alligator Rivers Region, including those of the Supervising Scientist Division, are regularly reviewed by the Alligator Rivers Region Technical Committee. This statutory committee, established under the provisions of the Environment Protection (Alligator Rivers Region) Act 1978, comprises stakeholder representatives and a majority of independent scientific experts. The committee provides a report to the minister after each meeting. Both reports from the committee during 2012–13 were highly complimentary of the Supervising Scientist Division research program.

Environmental impact assessmentsThe department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act in 2012–13. Of the 439 new referrals received, 193 referrals were determined not to be a controlled action, 96 referrals were determined not to be a controlled action subject to being undertaken in a particular manner and 118 referrals were determined to require formal assessment and approval under the EPBC Act. Eighty one proposals were approved under the EPBC Act and one project was deemed clearly unacceptable by the minister.

In May 2013 the department released the Environmental Impact Assessment Client Service Charter, which outlines its commitments in administering environmental impact assessments under the EPBC Act. The charter is intended to provide business and the public with greater certainty about what they can expect from the environmental impact assessment process. It also outlines how the Australian Government will work with state and territory assessment agencies.

The charter includes a post-decision feedback mechanism that will inform continuous improvement of how the department undertakes assessments under the EPBC Act.

Implementation of a case management approach for environmental impact assessment projects has seen expected timelines and milestone meetings established for complex projects. Regular discussions with state and territory jurisdictions to deal with relevant state and Commonwealth issues were established and maintained throughout 2012–13.

Strategic assessmentsThe Commonwealth entered into four new strategic assessments in 2012–13:

urban development at Gungahlin, Australian Capital Territory biodiversity plan for coal mining in the Upper Hunter Valley, New South Wales BHP Billiton iron ore expansion for the Pilbara, Western Australia Hamersley Iron Pty Ltd (Rio Tinto) iron ore expansion for the Pilbara, Western Australia.

Strategic plans for urban development at Heathcote Ridge (New South Wales) and Gungahlin (Australian Capital Territory) were endorsed.

Work also continued on five strategic assessments:

Great Barrier Reef World Heritage Area, Queensland Perth and Peel regions, Western Australia Melbourne urban growth corridors, Victoria Browse Basin LNG Precinct, Western Australia fire management policy, South Australia.

The following policies, plans or programs were endorsed and/or approved under a strategic assessment:

Midlands Water Scheme, Tasmania (approved) development at Heathcote Ridge, New South Wales (endorsed and approved) urban development at Gungahlin, Australian Capital Territory (endorsed).

Strategic assessments often save proponents from doing dozens, if not hundreds, of separate project referrals under the EPBC Act. For example, as a result of the approval of the Tasmanian Midlands Water Scheme,

approvals are not required for on-farm irrigation use, saving approximately 100 referrals by individual farmers.

As part of the Regional Sustainability Planning Program, an agreement under Section 146 of the EPBC Act was signed with the New South Wales Government to strategically assess a program based on the revised Lower Hunter Regional Conservation Plan.

As part of the Australian Government’s response to the 2012 decision of the World Heritage Committee regarding the ongoing protection and management of the Great Barrier Reef World Heritage property, the department supported work on the Independent Review of the Port of Gladstone.

Compliance and enforcementThe department considers all allegations of non-compliance under Part 3 of the EPBC Act. The 364 incidents examined by the department in 2012–13 appear to represent a decline from the 448 incidents examined in 2011–12 and 466 incidents examined in 2010–11. However, this can be attributed to a change in the way the department records and assesses allegations of non-compliance following the introduction of a departmental compliance and enforcement management database in early 2012. A further 195 matters reported to the department in 2012–13 were found not to represent potential breaches of the EPBC Act and were immediately resolved and recorded as enquiries rather than allegations of non-compliance.

Data that informs seizure and caution notices under Part 13A of the EPBC Act is provided by the Australian Customs and Border Protection Service. At 1 August 2013, 2097 seizure and caution notices were recorded as being issued by Australian enforcement authorities in 2012–13 for the import and/or possession of suspected CITES specimens without appropriate permission under Part 13A of the EPBC Act. This figure will increase as better data for 2012–13 are reported by the Australian Customs and Border Protection Service reflecting the lag in importing of data to the department.

Twenty-eight site inspections were undertaken to obtain information to assess whether alleged non-compliance actions had occurred. Incident reports are carefully examined to determine whether the EPBC Act applies. Thirty-two referrals were received as a result of departmental intervention and the department began 18 new formal investigations of alleged breaches of the EPBC Act. Details of these cases can be found in the Legislation reporting chapter, Breaches and investigations section.

The department executed six monitoring warrants under the EPBC Act and one search warrant under the Water Efficiency Labelling and Standards Act. Thirty-five notices to produce books and records were also served under section 486F of the EPBC Act.

Enforcement outcomes included four successful criminal prosecutions, three infringement notices, six enforceable undertakings and one remediation determination.

The department participated in Operation CETUS, a national joint cross-jurisdictional cetacean compliance operation aimed at protecting migrating whales from disturbance and to enforce whale approach limits. A significant operational effort was made by all jurisdictions across Australia involving a total of 123 separate compliance and enforcement activities. A strong educational campaign relating to whale protection laws was promoted through the media and by direct stakeholder engagement on the water.

The department undertakes both random compliance and risk-based audit programs across industry sectors, geographical areas and protected matters. Overall, the 15 audits identified a substantial level of compliance with conditions. Instances of non-compliance were addressed in accordance with the department’s Compliance

and Enforcement Policy.

At 21 June 2013 the Compliance and Enforcement Branch was monitoring 1137 projects. The branch processed variations of conditions attached to 81 approvals in 2012–13 and undertook 33 site visits. Details of these are found in the Legislation reporting chapter.

The department continues to work closely with partner agencies to manage wildlife compliance by sharing intelligence and resources. This has included the state and territory wildlife authorities, the Australian Customs and Border Protection Service, the Australian Federal Police, state and territory police, CITES management authorities in other countries, Interpol and some non-government organisations.

The department has continued to provide information sessions to the Australian Customs and Border Protection Service to assist with their enforcement of CITES at Australian borders. Training for new recruits and in-service training has been delivered in Darwin, Perth, Adelaide and Melbourne.

Preserving the marine environment—sea dumpingDuring 2012–13 the department issued 10 sea dumping permits and nine variations.

The above mentioned strategic risk-based audit program also reviewed an artificial reef located offshore from Sydney and a port facility in Western Australia and the related sea dumping permit.

Results for Deliverables and Key Performance IndicatorsProgram 5.1: Conservation of Australia’s Heritage and Environment DELIVERABLES 2012–13 RESULTSIdentification – Identifying places of special value in Australia that should be recognised and protected through inclusion on the World, National and Commonwealth Heritage Lists. Identifying nationally threatened species and ecological communities that should be recognised and protected through listing under the EPBC Act, and native and exotic flora and fauna that should be allowed or prevented from import/export to/from Australia.

In 2012–13 the Minister for Sustainability, Environment, Water, Population and Communities made listing decisions for 78 species and six ecological communities. These decisions included adding new listings for 13 species and six ecological communities, including the first-ever marine ecological community. Two species were downlisted to a lower category of threat, 12 were uplisted to a higher category of threat and 49 species were delisted. At 30 June 2013, 1756 species, 62 ecological communities and 20 key threatening processes were listed under the EPBC Act.

The department worked closely with Traditional Owners of Cape York Peninsula to identify and map natural and cultural heritage values to be included in a potential World Heritage nomination.

In early 2013 the department submitted a request for a minor boundary modification of the Tasmanian Wilderness World Heritage Area to the World Heritage Committee.

At the 37th session of the World Heritage Committee (meeting in Phnom Penh, Cambodia) on 24 June 2013 the Committee agreed to the minor boundary modification requested by the Australian Government to add more than 170 000 hectares to the Tasmanian Wilderness World Heritage Area.

The department supported the assessment and inclusion of the Western Tasmania Aboriginal Cultural Area in the National Heritage List; inclusion of 15 post offices in the Commonwealth Heritage List, taking the total to 396 places; addition of Indigenous values to the Wet Tropics of Queensland National Heritage place; and addition of values to two post offices in the Commonwealth Heritage List.

Management – Providing Commonwealth oversight on effective management of World, National and Commonwealth Heritage places; and providing targeted funding to support the conservation and interpretation of Australia’s special historic, Indigenous, natural and underwater values. Respond to World Heritage Committee requests. Assisting the management of threatened species and ecological communities through developing, identifying and prioritising on-ground management and research actions for inclusion in conservation advices, recovery plans and wildlife management plans, promoting their on-ground implementation, and providing targeted funding for a small number of high priority species.

In 2012–13, 26 recovery plans (a mix of revised and new recovery plans) were adopted, identifying and prioritising recovery actions for 41 listed threatened species and three listed threatened ecological communities.

The department responded to World Heritage Committee requests on the Great Barrier Reef, Tasmanian Wilderness and Macquarie Island.

The department has continued to inform the World Heritage Centre on a quarterly basis of new controlled action decisions with a section 12 (World Heritage) trigger under the EPBC Act; and of the approval, withdrawal or lapse of any previously notified controlled actions.

The department commissioned reports to define in more detail the geological and aesthetic values of the Great Barrier Reef and updated the 2002 World Heritage Management Strategy for the Riversleigh component of the Australian Fossil Mammal Sites (Riversleigh/Naracoorte).

Thirty-nine projects received funding from Caring for our Country to contribute to protection of World Heritage values and integrity.

The Historic Shipwrecks Program delivered year-two funding

under the 2011–2014 service level agreement with the state and territory governments.

The department supported actions to implement seven marine recovery plans covering 14 (non-migratory) species. Significant projects included providing support for two National Environmental Research Program projects covering a population study of the white shark and an investigation of habitat use and population estimates for three species of sawfish and two species of Glyphis sharks. Other actions included ensuring referrals are consistent with recovery plan objectives and working with state and territory governments to ensure consistency between jurisdictions in relation to the implementation of recovery plans.

Protection – Protection of heritage values, of Historic Shipwrecks and associated relics; and places or objects with Indigenous heritage value that may be under significant threat. Protection of Australia’s biodiversity through regulating the export and import of plants and animals. Providing information to regulators, land owners, managers and others to allow the effective protection and conservation of the wildlife matters through the Species Profile and Threats database, referral guidelines, farmers fact sheets, recovery plans, and listing and conservation advices.

The Species Profile and Threats database collates information about listed species and ecological communities. A total of 134 profiles were added or updated in 2012–13.

One final EPBC Act species referral guideline was published.

Six ecological community conservation advices and three ecological community stakeholder fact sheets were published. In addition, comprehensive guides to assist with the identification, assessment and management of two grassland and one woodland ecological communities were published.

The department continued to provide advice on development proposals referred under the EPBC Act to ensure that the outstanding universal value of all of Australia’s World Heritage properties is adequately taken into account.

Relics illegally removed from the historic shipwreck Lady Bowen were recovered. There was also a further successful prosecution of a diver for illegal penetration of the historic shipwreck SS Yongala.

The department successfully administered grant programs delivering funding to support heritage protection, conservation and interpretation.

The Indigenous Heritage Program provided $4.9 million (GST exclusive) to 53 projects to identify, conserve and promote Indigenous heritage places. The program was successfully administered, delivering funding to Indigenous communities to support heritage protection, conservation and interpretation of places important to Aboriginal and Torres Strait Islander people. The program contributes to the Australian Government policy of Closing the Gap on Indigenous Disadvantage.

Leadership – Providing high-level, strategic advice on heritage matters; advising on standards for best practice management of Australia’s significant heritage values and places; providing practical assistance to Papua New Guinea (PNG) and other pacific island countries to protect heritage places in our region, and sharing knowledge with the international community.

Supported the delivery of the Kokoda Initiative through assistance to the Kokoda Track Authority and the PNG Department of Environment and Conservation and Tourism Promotion Authority.

Continued to facilitate the development of the PNG Kuk World Heritage Site Management Plan.

Established the Pacific Heritage Hub at the University of the South Pacific.

Successfully completed a project to strengthen World Heritage and protected area governance in Vanuatu.

Continued to support the Solomon Islands to review the East Rennell World Heritage site management plan and protection legislation.

Worked with Australian Geographic to help prepare a map and publication that increases awareness of the Historic Shipwrecks Act 1976 and appropriate enjoyment of historic shipwrecks. The Minister for Sustainability, Environment, Water, Population and Communities also made a public call for

information about an offence that damaged the Japanese midget submarine M24 off Sydney.

Celebration – Recognising and communicating how heritage values enrich our lives and the Australian culture; providing opportunities for communities, industry and organisations to celebrate Australia’s heritage, including the places and events that contribute to our national identity; and enabling participation in the conservation and management of heritage values and places.

On 9 November 2012 the Minister for Sustainability, Environment, Water, Population and Communities recognised the Indigenous values of the Wet Tropics of Queensland and announced their inclusion in the National Heritage List.

The department successfully administered grant programs delivering funding to support heritage protection, conservation and interpretation.

$8.8 million (GST exclusive) was provided to 232 projects to assist the protection, conservation and promotion of nationally significant heritage places.

The minister announced the protection of the historic shipwreck MV Limerick on Anzac Day 2013.

KEY PERFORMANCE INDICATORS 2012–13 RESULTSImplementation of the Second Joint Understanding 2010–2015 between Papua New Guinea (PNG) and Australia on the Owen Stanley Ranges, Brown River Catchment and Kokoda Track Region, and progress towards meeting the goals.

Supported the Kokoda Track Authority in maintaining the Kokoda Track in a safe and well-managed condition, resulting in the track remaining open for 365 days and no reported trekker fatalities.

Supported the PNG Department of Environment and Conservation to investigate biodiversity survey methodologies and further develop spatial mapping systems to assist with the sustainable development and wise use of the Kokoda Track region.

Developed a heritage interpretation scoping study to assist with interpretation of military heritage in the Kokoda Track region.

Produced publication—Working Together on Cultural Tourism for the Future—to assist with sustainable tourism development in the Kokoda Track region.

Continued support for Livelihoods program, which is designed to increase the income generation capacity of the Kokoda Track communities.

Compliance with statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander Heritage Protection Act and the Historic Shipwrecks Act.

These obligations relate to the provision of advice for statutory decisions relating to matters of national environmental significance, Aboriginal and Torres Strait Islander sacred sites and objects, historic shipwrecks and wildlife.

The department assisted the Australian Heritage Council to comply with their statutory obligations in decisions related to nominations, assessment and listing of heritage places as matters of national environmental significance under the EPBC Act. The department also advised the minister regarding meeting statutory decision requirements under the Aboriginal and Torres Strait Islander Heritage Protection Act and the Historic Shipwrecks Act.

Compliance with statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander Heritage Protection Act and the Historic Shipwrecks Act.

These obligations relate to the provision of advice on areas of particular significance to Aboriginal and Torres Strait Islander peoples.

In 2012–13 the department continued to process 22 applications made by Indigenous Australians under the Aboriginal and Torres Strait Islander Heritage Protection Act from previous years and received seven new applications, of which four were not made validly under the Act. No declarations were made.

Compliance with statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander Heritage Protection Act and the Historic Shipwrecks Act.

These obligations relate to the completion of recovery plans and conservation advices on threatened species and ecological communities.

In 2012–13, 22 recovery plans were adopted, covering 32 listed threatened species and three listed ecological communities.

The department published conservation advices on 27 threatened species and six ecological communities.

The department coordinated a number of measures under provisions of the EPBC Act aimed at protecting threatened marine species. This included the completion of recovery plans for white sharks (Carcharodon carcharias) and the

Australian sea lion (Neophoca cinerea). These recovery plans were developed by the department in consultation with a range of stakeholders, including state governments, commercial and recreational fishers, research scientists and conservation non-government organisations. The department also commenced reviews of the recovery plans for three species of handfish and for the Sub-Antarctic fur seal (Arctocephalus tropicalis) and the southern elephant seal (Mirounga leonine).

Compliance with statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander Heritage Protection Act and the Historic Shipwrecks Act.

These obligations relate to the issuing of wildlife trade permits, and assessment of wildlife trade and shipwreck management plans/operations/agreements.

The department continues to work with state and territory shipwreck delegates and practitioners. New Australian and Netherlands committee members were appointed under the 1972 Agreement Between the Netherlands and Australia Concerning Old Dutch Shipwrecks. The following statutory actions were undertaken under the Historic Shipwrecks Act during 2012–13:

47 protected zone permits issued 11 shipwreck relic permits issued 27 shipwreck relic notifications two notifications of shipwreck discovery three declarations of historic shipwrecks.

The department approved the following wildlife trade programs in 2012–13:

three captive breeding programs two new and seven revised artificial propagation

programs two individual wildlife trade operations

(non-fisheries) four wildlife trade management plans.

The department ensures that live animals only go to appropriate zoological institutions through a review process and facility assessment.

In 2012–13, 58 assessments were completed for transfers of live animals for exhibition in zoos and aquaria. Forty-seven facility assessments were also completed for a wide range of animals, including komodo dragons (Varanus komodoensis), cheetah (Acinonyx jubatus) and white rhinoceros (Ceratotherium simum).

In 2012–13 the department issued 1810 permits for the import/export of regulated specimens in the above categories. Of that number, 1556 permits were issued for CITES specimens, 233 permits for the export of regulated native specimens and 21 permits for the import of live specimens. The number of personal accompanied baggage permits issued was 15 635.

Compliance with statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander Heritage Protection Act and the Historic Shipwrecks Act.

These obligations relate to the assessment of applications to amend the Live Import List.

Following environmental risk assessments, four species were added to the List of Specimens Taken to be Suitable for Live Import during 2012–13. Five other decisions regarding the Live Import List involved corrections/updates, amendment to existing listings, and one deletion.

Compliance with statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander Heritage Protection Act and the Historic Shipwrecks Act. These obligations relate to the awarding, executing and acquitting of grants.

The department successfully administered grant programs delivering funding to support heritage protection, conservation and interpretation.

The Indigenous Heritage Program provided $4.9 million (GST exclusive) to 53 projects to identify, conserve and promote Indigenous heritage places.

Compliance with statutory obligations under the EPBC Act, the Aboriginal and Torres Strait Islander Heritage Protection Act

The department supported the minister to meet statutory obligations related to the inclusion of places and additional

and the Historic Shipwrecks Act. These obligations relate to the inclusion of places, species, ecological communities and key threatening processes in statutory lists in accordance with the finalised priority assessment lists and assessments by the Threatened Species Scientific Committee and the Australian Heritage Council.

heritage values in statutory heritage lists under the EPBC Act.

The outcome of international forums on wildlife trade and heritage matters reflect Australia’s input.

Australia attended the 37th session of the World Heritage Committee in Cambodia and contributed to relevant agenda items. These included issues relating to Australia’s World Heritage sites, including the Great Barrier Reef, the Tasmanian Wilderness and Macquarie Island, along with the provision of strategic policy.

The 16th meeting of the Conference of the Parties of the CITES was held in Bangkok, Thailand in March 2013. Australia’s proposal to uplist the freshwater sawfish (Pristis microdon) from CITES Appendix II to Appendix I received unanimous support.

Australian proposals to delist eight extinct or incorrectly identified species were also successful.

Australia supported the proposals to list seven species of sharks and manta rays on CITES Appendix II, which was also successful. The species listed were porbeagle shark (Lamna nasus), oceanic whitetip shark (Carcharhinus longimanus), scalloped hammerhead shark (Sphyrna lewini), great hammerhead shark (S.mokarran), smooth hammerhead shark (S.zygaena); and the two manta ray species (Manta birostris and M.alfredi).

Of relevance to international fisheries was the adoption of amendments to the Resolution on Introduction from the Sea pertaining to the harvesting of CITES-listed species on the high seas. Australia was instrumental in ensuring the adopted resolution will enable a consistent understanding of the responsibilities of parties to issue introduction from the sea permits, allowing for effective implementation of CITES.

Program 5.2: Environmental RegulationDELIVERABLES 2012–13 RESULTSMajor amendments to the EPBC Act and associated policies, guidelines, standards and procedures.

A key amendment to the EPBC Act was made in 2012–13 to require the consideration of potential impacts on water resources from Coal Seam Gas and Large Coal Mining projects. There were a series of activities to support the efficient implementation of this amendment including:

Draft significant impact guidelines: Coal seam gas and large coal mining developments—impacts on water resources released in June 2013.

Draft of standard Terms of Reference for environmental impact statements and conditions of approvals for water related aspects of coal seam gas and large coal mining projects.

All departmental internal procedure, policy, guidelines and templates were updated to reflect the introduction of the new matter of national environmental significance, the water trigger.

In addition, the department updated a series of guidance documents for stakeholders including the: EPBC Act referral form; National Environmental Law fact sheet, Strategic Assessment Prospectus; Strategic Assessment FAQs and the Q&A Offset Policy.

Develop information and tools to make it easier for stakeholders to comply with the EPBC Act and the Environment Protection (Sea Dumping) Act 1981.

Refer to Program 5.1 results listed under ‘Protection’.

The department worked closely with CSIRO and state/territory environment agencies in Queensland, New South Wales, the Australian Capital Territory, Victoria and South Australia to commence a national flying fox monitoring program.

The department’s Environmental Offsets Policy released in October 2012 provides guidance on the role of offsets in environmental impact assessments, and how the department considers the suitability of a proposed offset.

The Strategic Assessment Prospectus released in May 2013 seeks input from industry and states regarding potential new strategic assessments

The department’s Environmental Impact Assessment Client Service Charter released in May 2013 outlines the department’s commitments when undertaking Environmental Impact Assessment (EIA) under the EPBC Act.

Improve administrative systems to increase the efficiency of our business processes and deliver increasingly high-quality, legally robust and consistent decisions.

A Reporting and Forecasting Tool was developed. It provides forecasted data for referrals and assessments currently being assessed under the EPBC Act.

A Referral Quality Assurance Checklist was developed to improve operational consistency of environmental assessments referred to the department.

The online statutory management component of the Australian National Shipwreck Database has continued to improve the efficiency, accountability and consistency of delegated activity by state and territory governments under the Historic Shipwrecks Act.

Develop bilateral agreements and strategic assessments with state and territory governments, in accordance with EPBC Act requirements, to increase the effectiveness of cooperative environmental protection efforts.

A technical review of assessment bilateral agreements occurred with most states in 2012–13:

Western Australian and Northern Territory proposed amendments were well advanced

discussions with South Australia and Queensland commenced

an invitation was sent to New South Wales inviting a

bilateral discussion.New administrative arrangements were agreed with Queensland, Tasmania and the Australian Capital Territory.

Four new strategic assessments were entered into during 2012–13 in Australian Capital Territory; New South Wales; and two in Western Australia. (see Evaluations and Conclusions – Strategic Assessments section).

Progress a comprehensive strategic assessment of the Great Barrier Reef World Heritage Area and adjacent Queensland coastal zone.

The terms of reference for the strategic assessment were approved.

An independent review of the Port of Gladstone commenced.

The Great Barrier Reef Marine Park Authority and the Queensland Government are preparing assessment reports for public exhibition, in consultation with the department.

Contribute funding for the implementation of a rehabilitation management plan to remediate damage to habitat buffer zones associated with the Tiwi Islands Plantation Project on western Melville Island.

Funding has been deferred until 2013–14 due to legal considerations.

Substantial commencement of at least three Regional Sustainability Plans (RSP) and investment in relevant environmental and socio-economic research to underpin sustainability planning at the local and regional scale.

Approval of three additional RSP regions was recommended by the interdepartmental RSP reference group (Perth Peel, Upper Spencer Gulf and Darwin) in November 2012.

Tasmania was approved as an RSP region in March 2013.

Scientifically rigorous and appropriate environmental performance criteria for the operation, closure and rehabilitation of uranium mines in the Alligator Rivers Region are developed and reviewed.

The department completed its magnesium pulse exposure ecotoxicology project, which will inform a significant review of the water quality guidelines for Ranger Mine.

Annual research program into the impact of uranium mining on the environment is conducted.

The annual research program and outcomes were endorsed by the independent Alligator Rivers Region Technical Committee.

Annual monitoring program is conducted to ensure protection of the environment from the impact of uranium mining.

The annual monitoring program was completed. It indicated that Kakadu National Park and the Ramsar-listed Magela Plains remained protected.

KEY PERFORMANCE INDICATORS 2012–13 RESULTSImproved client satisfaction with service delivery as measured by feedback on improved tools and client surveys.

A post-decision feedback form is a component of the EIA Client Service Charter. This ensures continuous improvement in the level of service the department provides to stakeholders. The Client Service Charter was released in May 2013.

EPBC Act assessments are completed within statutory timelines.

86 per cent of all statutory decisions under the EPBC Act were made within the statutory timeframes. This includes permits, listings, recovery plans and environmental impact assessments.

Using the prioritisation systems, 100 per cent of compliance and enforcement cases are prioritised and progressed within agreed timeframes.

Further details can be found on the operation of the EPBC Act in the Legislation reporting chapter.

Assess or investigate all reported compliance incidences under the EPBC Act.

The department considered all allegations of non-compliance under Parts 3 or 13A of the EPBC Act.

364 incidents or activities representing potential breaches of Part 3 of the EPBC Act were examined by the department.

Data that informs seizure and caution notices under Part 13A of the EPBC Act is provided by the Australian Customs and Border Protection Service. At 1 August 2013, 2097 seizure and caution notices were recorded as being issued by Australian enforcement authorities in 2012–13 for the import and/or possession of suspected CITES specimens without appropriate permission under Part 13A of the EPBC Act. This figure will increase as better data for 2012–13 are reported by the

Australian Customs and Border Protection Service reflecting the lag in importing of data to the department.

State and territory government processes are accredited in accordance with national standards and COAG agreements.

In December 2012 COAG agreed that the government would continue to work with state and territory governments to eliminate duplication, avoid delayed approval processes and utilise common information requirements for regulatory processes.

The department has continued to review bilateral agreements and administrative arrangements with states and territories and align processes as much as practicable.

Number of times the uranium concentration of surface water downstream of Ranger Mine exceeds

6 micrograms per litre.*

0

Annual research and monitoring program into the impact of uranium mining on the environment is endorsed by the Alligator Rivers Region Technical Committee.

Yes.

* Ecotoxicity assessment by the Supervising Scientist indicates that limiting uranium concentrations downstream of Ranger Mine to less than 6 micrograms per litre will ensure the protection of the aquatic environment. Given that uranium concentrations downstream of Ranger Mine are naturally low, the presence of elevated uranium concentrations is a good indicator of mine discharge effects on water quality.

Outcome 6: COMMONWEALTH ENVIRONMENTAL WATERProtection and restoration of environmental assets through the management and use of Commonwealth environmental water.

ContentsSummaryProgress against priorities for 2012–132012–13 Portfolio Budget Statement key performance indicators

Priorities for 2012–13

Management of Commonwealth environmental water in 2012–13

Commonwealth environmental water made available for useCatchment summariesCarryover of Commonwealth environmental water in 2012–13Trade of Commonwealth environmental water

Administration of Commonwealth environmental water

Directions given to the Commonwealth Environmental Water HolderAustralian National Audit Office reportManagement of the portfolio of Commonwealth environmental waterRisk management for Commonwealth environmental waterEnvironmental water shepherdingProviding informationWorking with and obtaining advice from othersBusiness and information systemsMonitoring and evaluating the use of Commonwealth environmental waterEnvironmental water holdings special account 2012–13

Appendix A—Commonwealth Environmental Water Office holdings in the Murray–Darling Basin

Appendix B—Commonwealth environmental water delivered in the Murray–Darling Basin in 2012–13

Appendix C—Basin catchment summaries of Commonwealth environmental water use in 2012–13

Appendix D—Commonwealth environmental water carryover into 2013–14

SummaryThe Commonwealth Environmental Water Holder (CEWH) is a statutory position established by the Water Act 2007 to manage the Commonwealth environmental water holdings. Commonwealth environmental water is made available to protect and restore rivers, wetlands and other environmental assets in the Murray–Darling Basin (the Basin). The CEWH leads and is supported by the Commonwealth Environmental Water Office (the office). Mr David Parker, Deputy Secretary, held the position of CEWH from May 2012 until I started in the role in December 2012.

On 22 November 2012 the Murray–Darling Basin Plan (the Basin Plan) was signed into law. The CEWH must perform its functions and exercise its powers consistent with and in a manner that gives effect to the Basin Plan, and must manage the water holdings in accordance with the Basin Plan’s environmental watering plan. The office successfully commenced the transition to meet the requirements of the Basin Plan during 2012–13.

The 2012–13 year saw a return to drier conditions across most of the Basin1. Commonwealth environmental watering in 2012–13 continued to build on the ecological recovery of riverine and wetland communities following the wetter conditions experienced in Basin catchments from 2010 to early 2012.

Since 2009, 2505 gigalitres of Commonwealth environmental water has been delivered for the environment across the Basin. During 2012–13:

the total volume of Commonwealth environmental water in Commonwealth accounts was 1676 gigalitres

a total of 1272 gigalitres was delivered after evaporative deductions, a total of 393 gigalitres of water (23 per cent of the total volume available

in Commonwealth accounts) was carried over into 2013–14 Commonwealth environmental water contributed to 34 actions across a total of 15 catchments in the

Basin 240 gigalitres of return flows from catchments of the Southern Connected Basin were used to achieve

multi-site environmental outcomes watering contributed to achieving significant environmental outcomes in the Basin, including:

o provided river flows that supported good water quality for the environment and water userso connected rivers to floodplains, which helped maintain food chains and supported fish

movemento filled wetlands that supported native fish, birds and other native animalso supported the recovery of the environment following the drought, as well as helped build

resilience in preparation for the next drought.

In 2012–13 a number of activities important to the successful implementation of Commonwealth environmental watering were completed or progressed:

the first partnership agreement for the use of Commonwealth environmental water by a non-government organisation (Nature Foundation South Australia) was entered into, and watering was undertaken

the Australian National Audit Office (ANAO) assessed the effectiveness of the office’s administration of environmental water holdings and found the office’s strategies for managing environmental water are generally sound

water use planning documents for the ten regions of the Basin for both the 2012–13 and 2013–14 water years were developed in collaboration with the Murray–Darling Basin Authority (MDBA), state agencies and local communities and were publically released

the Commonwealth Environmental Water Office 2011–12 outcomes report was released the office continued to actively participate in state and local environmental water planning and

management committees across the Basin the framework for determining Commonwealth environmental water use was updated to align with the

Basin Plan hosting arrangements for placing six Commonwealth environmental water local engagement officers

1 Bureau of Meteorology Murray–Darling Rainfall Deciles 1 July 2012 – 30 June 2013.

were determined, with recruitment expected to occur in 2013–14 the office engaged with the National Native Title Council to support the National Cultural Flows

Research Project, which will inform the office as to how environmental water could be applied in partnership with Indigenous communities to help contribute to achieving mutual environmental and cultural outcomes.

The office continues to progress the Commonwealth environmental water monitoring, evaluation, reporting and improvement framework, which will allow the outcomes of environmental water use to be assessed in the short, medium and long term. This work is critical to adaptive management and to ensuring that the best environmental outcomes are being achieved through the efficient and effective use of Commonwealth environmental water. The integration of the Environmental Water Management System and the Environmental Assets Database into the daily operations of the office is also expected to improve the efficiency of many of its business activities, including Basin Plan reporting requirements.

David PappsCommonwealth Environmental Water Holder

July 2013

Progress against priorities for 2012–132012–13 Portfolio Budget Statements key performance indicatorsThe office has met its key performance indicators identified in the 2012–13 Portfolio Budget Statements for the Australian Government Department of Sustainability, Environment, Water, Population and Communities, demonstrating:

the effective use of Commonwealth environmental water for the protection and restoration of environmental assets as demonstrated in the Commonwealth Environmental Water Office 2011–12 Outcomes Report (published in March 2013).

engagement with local communities and water delivery and water holding partners, having regard to local experience, knowledge and perspectives when undertaking environmental watering. This has been demonstrated by the development of annual water use options plans, regular attendance of meetings and site visits in Basin catchments and commencing the establishment of a network of Commonwealth Environmental Water Office local engagement officers.

Priorities for 2012–13The Commonwealth Environmental Water Office 2012–13 business plan identified the office priorities for 2012–13, which included and built upon the program deliverables outlined in the 2012–13 Portfolio Budget Statements. The progress and outcomes achieved against these priorities are outlined below.

Management of Commonwealth environmental water in 2012–13Commonwealth environmental water made available for useDuring 2012–13 for Commonwealth environmental water:

the total amount of water in Commonwealth accounts was 1676 gigalitres a total of 1272 gigalitres was delivered a total of 393 gigalitres of water (23 per cent of the total volume available in Commonwealth accounts)

was carried over into 2013–14—a reduction of 222 gigalitres from the carryover on 1 July 2012.

Commonwealth environmental water availability and use since 2008–09 is shown in Figure 1. The Commonwealth environmental entitlement holdings in the Basin grew from 1368 gigalitres to 1629 gigalitres during 2012–13 (at 30 June 2013—see Appendix A). These holdings will deliver, on average, 1190 gigalitres of water to the environment each year. Subsequent to the Basin Plan being made, the office delivered Commonwealth environmental water consistent with Basin Plan obligations.

Figure 1: Commonwealth environmental water availability and use since 2008–09

Note: Data have been updated since previous annual reports in accordance with revised accounting treatment of some entitlements and water use. Evaporative losses have been deducted from carryover figures.

Catchment summariesDrier conditions returned to the Basin in 2012–132. Commonwealth environmental watering in 2012–13 continued to build on the ecological recovery of riverine and wetland communities following the wetter conditions experienced in Basin catchments from 2010 to early 2012.

Watering actions throughout the Basin in 2012–13 were managed and delivered with the assistance of partners including water management authorities, local advisory groups, landholders and scientists. Commonwealth environmental water was usually delivered in conjunction with state government environmental water.

During 2012–13 the office, with the assistance of its partners, contributed to the following key environmental watering achievements:

coordinated environmental water planning and delivery with other state and local environmental water holders, water managers and infrastructure operators

worked with local communities and advisory groups to plan for and manage Commonwealth environmental water

generated ecological outcomes in response to Commonwealth environmental watering, which were supported by observations and intervention monitoring.

Commonwealth environmental water was used for the first time in a number of locations, including the Namoi River, the Mallowa wetlands in the Gwydir catchment, Whirlpool Corner, Disher Creek and Berri Basin in South Australia, Tuppal and Gwynnes Creeks of the Edward–Wakool catchment and wetland areas of the western lower Murrumbidgee floodplain near Balranald. Return flows totalling 240 gigalitres from catchments of the Southern Connected Basin were used to achieve multi-site environmental outcomes.

The office also undertook the first use of Commonwealth environmental water as part of a long-term agreement with a non-government organisation (the Nature Foundation South Australia) at Clarks Floodplain near Berri.

A summary of the volume of Commonwealth environmental water delivered in the Basin during 2012–13 is provided in Appendix B. More detail on each Commonwealth watering event undertaken during 2012–13 is provided in Appendix C.2 Bureau of Meteorology Murray–Darling Rainfall Deciles 1 July 2012 – 30 June 2013.

Carryover of Commonwealth environmental water in 2012–13Carryover is a water management mechanism available in regulated parts of the Basin. It entitles water licence holders to defer use of some water that is available in one year until the following year, when it may be of more benefit.

The Commonwealth carried 393 gigalitres (net, or 23 per cent of the Commonwealth water available in accounts) over from 2012–13 into 2013–14, which was a smaller volume of carryover than in the prior year because water use in the year exceeded allocations (see Appendix D). This proportion of carryover is slightly lower than that of other water users. The water is held across nine catchments and is equivalent to about 1.8 per cent of the total public storage capacity across the Basin. In 2013–14, 43 per cent of the carryover will be held in the Southern Connected Basin and 57 per cent of the carryover will be held in the Northern Basin.

Trade of Commonwealth environmental waterNo trade was conducted in 2012–13.

Monitoring of Commonwealth environmental wateringIn 2012–13 short term (one year) targeted intervention monitoring projects were commissioned by the office and undertaken in key areas across the Basin including the Murrumbidgee, Edward–Wakool, Lower Murray and Goulburn catchments. More detail about these projects is included in Table 1. Results of monitoring Commonwealth environmental water actions are published on the office’s website and demonstrate the environmental benefits of these actions.

Table 1: Summary of Commonwealth environmental water short-term ecological monitoring projects commenced in 2012–13 (results expected to be published in early 2014)CATCHMENT SITE INDICATORS OF

ECOLOGICAL RESPONSE TO ENVIRONMENTAL WATER

ORGANISATION

LEAD PARTNER

Goulburn-Broken Goulburn River and Broken Creek Primary productivity, fish, macroinvertebrates, habitat, sediment, vegetation and water quality.

University of Melbourne (Murray–Darling Freshwater Research Centre oversight)

Monash University, Arthur Rylah Institute

Murray Edward–Wakool River system Water quality, organic matter, zooplankton, macroinvertebrates, phytoplankton, biofilms, fish and frogs.

Charles Sturt University NSW Office of Environment and Heritage, Monash University, NSW Department of Primary Industry (DPI), Murray Catchment Management Authority (CMA), Wakool Landholders

Murrumbidgee Murrumbidgee River and adjacent wetlands

Biofilms, vegetation macroinvertebrates, fish, frogs, water quality, waterbirds, zooplankton and carbon/nutrients.

Charles Sturt University NSW Office of Environment and Heritage, University of NSW, NSW Department of Primary Industries, Murrumbidgee Catchment Management Authority

Lower Murray Murray River channel, Lower Lakes, Coorong

Fish (spawning, assemblage, recruitment, movement and natal origin); water quality (salt and nutrient export); larval fish food resources; fringing wetland connectivity and frogs.

South Australian Research and Development Institute

University of Adelaide, University of Western Australia, CSIRO

Administration of Commonwealth environmental waterDirections given to the Commonwealth Environmental Water HolderNo directions were given in 2012–13 to the CEWH by either the minister or the secretary of the department.

Australian National Audit Office reportIn May 2013 the Australian National Audit Office (ANAO) completed audit report No.36 2012–13 performance audit: Commonwealth environmental watering activities, which assessed the effectiveness of the office’s administration of environmental water holdings. The audit examined whether the office’s:

governance arrangements are appropriate to effectively manage and report on the office’s environmental watering activities

engagement of all relevant stakeholders effectively facilitates the management of the office’s environmental watering activities

arrangements to plan and target available Commonwealth environmental water at priority environmental assets are effective

arrangements to deliver Commonwealth environmental water to the designated environmental assets are effective and timely

monitoring and evaluation activities effectively identify the outcomes achieved from the office’s environmental watering activities, and influence future water use decisions.

The ANAO found that the strategies for managing Commonwealth environmental water are generally sound and made no formal recommendations for change, instead offering a number of suggestions for improvement. The office accepted those suggestions. Measures that the office is putting in place include:

improved stakeholder engagement through the employment of local engagement officers and the development of new communications and stakeholder engagement strategies

establishing a new water holdings register engaging in longer term portfolio planning undertaking more regular reviews of performance against the office’s business plan implementing a standard framework for determining operational monitoring requirements and

preparing a standardised acquittal report for each watering action.

Murray–Darling Basin Plan and environmental watering planIn November 2012 the Basin Plan came into effect under the Water Act 2007. The CEWH must manage the Commonwealth’s environmental water holdings in accordance with the Basin Plan’s environmental watering plan.

The office worked closely with the Murray–Darling Basin Authority to successfully align the planning and use of Commonwealth environmental water with the requirements of the environmental watering plan, including:

updated the Framework for Determining Commonwealth Environmental Water Use (including revised criteria for assessing options for Commonwealth environmental water use) so that decisions on Commonwealth water use are consistent with the requirements of the Basin Plan

developed the Commonwealth Environmental Water Annual Use Options 2013–14 (published in June 2013) to contribute to achieving the environmental watering plan’s overall objectives

reported on how 2012–13 watering actions have contributed to achieving the environmental watering plan objectives (Appendix C, tables A3–A13).

Management of the portfolio of Commonwealth environmental waterIn August 2012 the office published its first annual carryover report, which described Commonwealth environmental water carryover from 2011–12 into 2012–13. The annual Commonwealth Environmental Water Carryover Report for 2012–13 into 2013–14 has recently been published on the department’s website.

Statements related to management of the portfolio of Commonwealth environmental water were published on the office website in September and December 2012 and March 2013. Information about Commonwealth environmental water holdings was updated each month on the office website.

The office is developing protocols for water trading to ensure compliance with the Basin Plan trading rules. Water use planning documents for 2012–13 and 2013–14 were produced and made available on the office’s website.

Risk management for Commonwealth environmental waterIn 2011–12 the office engaged the Australian Government Solicitor to identify and assess the sources of the office’s strategic legal and governance risks and identify appropriate treatments where current controls were considered insufficient to manage risks rated medium or higher. The assessment was finalised in June 2012 and in 2012–13 the office implemented and updated its risk mitigation and treatment plan for its activities in line with the Australian Government Solicitor’s recommendations.

Environmental water shepherdingWater shepherding relates to the protection of Commonwealth environmental water from extraction as it flows downstream. A key focus of water shepherding is to ensure that third-party interests are neither increased nor diminished. This includes irrigators within a particular catchment and downstream.

The report Proposed Arrangements for Shepherding Commonwealth Environmental Water in New South Wales Outcomes of Consultation was published by the New South Wales Office of Water in November 2012. A preferred option for shepherding Commonwealth environmental water in the Barwon–Darling River upstream of Menindee Lakes (including shepherding of Commonwealth environmental water sourced from Queensland and New South Wales regulated and unregulated tributaries) was identified. This work is expected to continue in 2013–14, with consideration of three options to shepherd Commonwealth environmental water through the Menindee Lakes.

Providing information The office remains committed to providing up-to-date information on its activities. The website www.environment.gov.au/ewater is the office’s primary tool for making information publicly available. It includes information about the holdings, management and use of Commonwealth environmental water in each Basin catchment, frameworks for making water use decisions and managing water, and monitoring projects and outcomes. It also provides an avenue for people to give suggestions on the potential use of Commonwealth environmental water and makes available reports drafted or commissioned by the office.

During 2012–13 the following reports on the activities of the office were produced:

Annual report 2011–12 Commonwealth environmental water (in Department of Sustainability, Environment, Water, Population and Communities Annual Report 2011–12).

Commonwealth Environmental Water Office 2012–13 Business Plan. Commonwealth Environmental Water Office 2011–12 Outcomes Report. Murray–Darling Basin Environmental Water Holders’ Report. Commonwealth Environmental Water Portfolio Management Statements. Commonwealth Environmental Water Carryover from 2011–12 into 2012–13 Report. Commonwealth Environmental Water Annual Water Use Options Planning Documents for 2012–13

and 2013–14. Reports on Monitoring and Evaluation of Commonwealth Environmental Watering Commissioned by

the Office.

The Commonwealth Environmental Water Office 2012–13 Outcomes Report is anticipated to be published by January 2014.

A subscription email database is another mechanism the office uses for providing interested parties with the latest information on Commonwealth environmental water management.

Working with and obtaining advice from othersIn 2012–13 the office continued to focus on a range of stakeholder engagement activities, including:

determined hosting arrangements for placing six Commonwealth Environmental Water Office local engagement officers, who are expected to be recruited in 2013–14

actively sought input and feedback from stakeholders on governance, processes and decision

making participated in planning processes, including regularly met with local partners and landholders on a

catchment-by-catchment basis released publications and engaged in targeted consultation on issues including water use, water

trade, carryover, and monitoring and evaluation.

The CEWH’s decisions are informed by two advisory groups: the Commonwealth Environmental Water Scientific Advisory Panel, which met four times during 2012–13; and the Commonwealth Environmental Water Stakeholder Reference Panel, which met twice during 2012–13. More information about these panels and their members is available from the office’s website.

The office also proposed establishing a Commonwealth Environmental Water Advisory Council during 2012–13. It is currently considering whether a committee or some alternative approach would provide the most efficient and effective access to specialist advice.

The office is looking to increase its engagement with Indigenous people in order to progress the potential opportunities for achieving mutual environmental and cultural outcomes, including engaging with groups such as the Northern Basin Aboriginal Nations and the Murray Lower Darling Rivers Indigenous Nations. The office is engaging with the National Native Title Council to support the National Cultural Flows Research Project. This multi-year project is expected to provide information on water requirements to meet cultural values and will help to inform the office as to how environmental water could be applied to help contribute to achieving mutual environmental and cultural outcomes.

The Commonwealth Environmental Water Holder and Commonwealth Environmental Water Office respectfully acknowledge the Traditional Owners, their Elders past and present, their Nations of the Murray–Darling Basin, and their cultural, social, environmental, spiritual and economic connection to their lands and waters.

The office remains committed to effective collaboration, engagement and sharing of information with a broad range of partners within the Basin community in relation to Commonwealth environmental water planning, management and monitoring, to improve environmental water outcomes. The office engages with many stakeholder groups and individuals including state government bodies, river operators, catchment management authorities, local environmental watering advisory groups, not-for-profit water and land management organisations, other holders of environmental water, landholders and the Murray–Darling Basin Authority.

The engagement activities outlined in this section are part of the office’s approach to localism in the Basin. The office relies on input from Basin communities to inform its operations and is committed to improving the ability of local communities to become involved in environmental water management.

Business and information systemsTwo new key information management systems are in the process of being established and rolled out to improve the efficiency the office’s business activities, including Basin Plan reporting requirements:

The Environmental Water Management System manages Commonwealth environmental water holdings information, providing financial and volumetric tracking of watering actions.

The Environmental Assets Database, developed jointly by the office and the Murray–Darling Basin Authority, holds information on the management and health of environmental assets in the Basin and the use of Commonwealth environmental water to protect and restore the health of these assets.

Both databases are being integrated into the daily operations of the office.

Monitoring and evaluating the use of Commonwealth environmental waterIn 2012–13 the office continued work on implementing the Commonwealth Environmental Water Monitoring, Evaluation, Reporting and Improvement Framework that will support the efficient and effective use of Commonwealth environmental water and demonstrate the achievement of environmental outcomes over the long term. Key elements of the framework are now in place and it will continue to be implemented as more water is delivered. The framework has been aligned with the Basin Plan’s environmental watering objectives.

Each Commonwealth environmental watering action is monitored and reviewed from an operational perspective to ensure that water is delivered as planned and to help manage risks such as unintended inundation.

Targeted intervention monitoring is undertaken by scientists commissioned by the office to help understand environmental outcomes and inform water use (see ‘Monitoring of Commonwealth environmental watering’).

The focus of this monitoring is currently transitioning from short-term (one-year) projects to long-term (five-year) projects, which will commence in 2014–15.

The approach has a sound scientific basis. It will allow the office to interpret and translate the results of monitoring to other areas and identify the contribution of each project to the long-term Basin Plan objectives.

Environmental Water Holdings Special Account 2012–13The Environmental Water Holdings Special Account is established under the Water Act 2007 for the payment of costs, expenses and other obligations incurred in managing Commonwealth environmental water holdings. At the start of 2012–13 the special account balance was $36.132 million. Funding of $24.7 million was credited from the Sustainable Rural Water Use and Infrastructure Program to the account at the end of the financial year. As it was a high-use year, $13.93 million was expended on annual water entitlement fees, allocation trading and delivery costs. At 30 June 2013 the special account balance was $43.824 million (of which $15.091 million has been committed for environmental watering actions and other projects). The key expenditure in 2012–13 is shown in Table 2.

Table 2: Environmental Water Holdings Special Account expenditureCATEGORY OF EXPENSE TOTAL COSTS ($ MILLION)Fees and charges for holdings and allocations and for maintaining and providing for the replacement of rural water infrastructure1

13.930

Monitoring and evaluation 1.486

Development of environmental registers and other systems 1.586

Portfolio management 0.006

Total 17.008

Note: 1. Fees and charges include $8.491 million for annual water entitlement fees and $5.439 million for allocation use fees. No pumping costs were incurred by the office to deliver environmental water in 2012–13.

Appendix A—Commonwealth Environmental Water Office holdings in the Murray–Darling Basin Table A1: Commonwealth Environmental Water Office holdings in the Murray–Darling Basin (at 30 June 2013) (continued)RIVER SYSTEM SECURITY/

RELIABILITYREGISTERED ENTITLEMENTS (ML1)

LONG-TERM AVERAGE ANNUAL YIELD (ML)

Queensland

Border Rivers Medium 11 684 3969

Unsupplemented 4286 1814

Condamine Balonne Unsupplemented 46 950 32 437

Moonie Unsupplemented 1415 1100

Nebine Unsupplemented 5920 1000

Warrego Unsupplemented 16 050 8000

Total Queensland Medium 11 684 3969

Unsupplemented 74 621 44 351

New South Wales

Barwon–Darling Unregulated 22 275 22 275

Border Rivers General 298 119

Gwydir High 375 375

General 89 525 32 229

Supplementary 19 100 3629

Lachlan High 933 933

General 86 923 36 508

Lower Darling General 492 399

Macquarie/Cudgegong General 116 110 48 766

Supplementary 1888 397

Murray High 8553 8125

General 318 186 257 731

Supplementary 56 41

Groundwater 1141 1141

Conveyance 1230 964

Unregulated 30 24

Murrumbidgee High 4246 4034

General 200 145 128 093

Conveyance 8856 8413

Supplementary 20 820 2915

Namoi (upper) General 105 81

Namoi (lower) General 6218 4788

Warrego Unregulated 17 826 17 826

Total New South Wales

High 14 107 13 467

General 818 002 508 713

Conveyance 10 086 9378

Supplementary 41 864 6981

Unregulated 40 131 40 125

Groundwater 1141 1141

Victoria

Broken High 117 111

Low 4 3

Campaspe High 6547 6219

Low 395 194

Goulburn High 205 090 194 792

Low 11 389 4102

Loddon High 2775 2636

Low 527 142

Murray High 243 534 231 393

Low 11 765 3002

Ovens High 70 67

Wimmera–Mallee High 28 000 22 568

Total Victoria High 486 133 457 785

Low 24 081 7444

South Australia

Murray High 107 266 96 504

Total South Australia High 107 266 96 504

Total Murray–Darling Basin

High 607 467 567 756

General/Medium/Low 853 767 520 125

Conveyance 10 086 9378

Supplementary 41 864 6981

Unsupplemented/Unregulated

114 752 84 476

Groundwater 1141 1141

GRAND TOTAL2 1 629 077 1 189 857

Notes:1. One gigalitre equals 1000 megalitres. Some volumes may differ marginally from 30 June 2013 figures posted on the Commonwealth Environmental Water Office website due to accounting adjustments made after 30 June 2013.2. The volume of water currently in the holdings is less than the volume secured under Water for the Future, which includes water entitlements secured under contract but not yet formally transferred to the Commonwealth.

Appendix B—Commonwealth environmental water delivered in the Murray–Darling Basin in 2012–13Table A2: Summary of the volume of Commonwealth environmental water delivered in the Murray–Darling Basin in 2012–13CATCHMENT WATER DELIVERED

(GL)ACTIONS

Murray 548.9 Lower Murray

Edward–Wakool 33.9 In-stream flows and Colligen, Yallakool, Jimaringle, Cockran, Gwynnes and Tuppal Creeks

Murray (Groundwater)1 0.1 Lower Murray Groundwater

Macquarie 100.0 Macquarie Marshes

Murrumbidgee 156.0 Mid Murrumbidgee River flows and lower Murrumbidgee floodplain

Loddon 2.7 Instream flows

Campaspe 6.8 Instream flows

Goulburn 201.1 Instream flows

Lower Broken Creek 41.2 Instream flows

Upper Broken Creek 0.05 Instream flows

Ovens River 0.02 Ovens River flows

Lachlan 51.1 Booligal wetlands and Lachlan Swamps

Namoi 7.7 Instream flows

Border Rivers 0.9 Instream flows

Gwydir 27.7 Mallowa wetlands and Gwydir wetlands

Border Rivers (Severn) 1.0 Instream flows

Border Rivers (Macintyre) 0.7 Instream flows

Moonie 1.4 Instream flows

Condamine-Balonne (Lower Balonne)

64.9 Instream flows

Barwon–Darling (Toorale) 25.6 Instream flows

Total2 1272.00

Notes:1. In groundwater systems, the Commonwealth may ‘take’ water against its water entitlements by leaving the water in the ground (not extracting it).2. In addition return flows totalling 240 gigalitres from catchments of the Southern Connected Basin were used to achieve multi-site environmental outcomes.

Appendix C—Basin catchment summaries of Commonwealth environmental water use in 2012–13 Table A3: Commonwealth environmental watering actions for the Barwon–Darling catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND FLOODPLAIN

Barwon–Darling Rivers

Barwon–Darling Rivers unregulated

yes n/a n/a In-stream use in the Barwon–Darling to contribute to a more naturally variable flow regime that supports key ecosystem functions.

8.06(3)(b)(i)

8.06(6)(a) and (b)

November 2012–March 2013

25 616

Table A4: Commonwealth environmental watering actions for the Border Rivers catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND FLOODPLAIN

Border Rivers

Border Rivers yes n/a n/a To contribute to: stimulating production

through all levels of the aquatic food chain

providing migration and dispersal cues to native fish

wetting and interconnecting riparian areas.

8.05(3)(a)

8.06(3)(b)(i)

8.06(6)(a) and (b)

December 2012

895

Border Rivers

Severn River unregulated

yes n/a n/a To contribute to: providing a more naturally

variable flow regime in the Severn River within Sundown National Park

filling and reconnecting refugial waterholes

providing migration and spawning cues for large bodied native fish, encouraging the germination and maintenance of riverbank vegetation.

8.05(3)(a)

8.06(3)(b)(i)

8.06(6)(a) and (b)

January 2013–February–2013

976

Border Rivers

Lower Macintyre unregulated

yes n/a n/a To contribute to: supporting a more naturally

variable flow regime in these systems

improving fish habitat, through both recruitment and movement

carbon and nutrient cycling through the end of system.

8.05(3)(a)

8.06(3)(b)(i)

8.06(6)(a) and (b)

8.06(7)

January 2013-–ongoing at 30 June 2013

687

Table A5: Commonwealth environmental watering actions for the Condamine–Balonne catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATIONWETLAND FLOODPLAI

NBalonne Lower Balonne

unregulatedyes n/a n/a In-stream use in the Lower

Balonne to contribute to a more naturally variable flow regime that supports key ecosystem functions.

8.06(3)(b)(i)

8.06(6)(a) and (b)

February 2013–ongoing at 30 June 2013

64 946

Table A6: Commonwealth environmental watering actions for the Gwydir catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND

FLOODPLAIN

Gwydir Mallowa Wetlands

yes yes yes To contribute to: supporting and building upon the

extensive ecological responses in 2010–12

enabling growth, breeding and small-scale recruitment for a diverse range of native plants and animals

promoting low-lying floodplain-river connectivity.

8.05(2)(b)

8.05(3)(a) and (b)

8.06(3)(b)(ii)

8.06(5)

8.07(4)

December 2012–March 2013

5000

Gwydir Gwydir Wetlands

yes yes yes To contribute to: supporting and building upon the

extensive ecological responses and ensure survival of native plants and animals that recruited in 2010–12;

enabling growth, breeding and small-scale recruitment for a diverse range of native plants and animals

promoting low-lying floodplain-river connectivity

supporting medium–flow river and floodplain functional processes

helping suppress the growth of lippia (Phyla canescens) which is an introduced weed.

8.05(2)(a) and (b)

8.05(3)(a) and (b)

8.06(3)(b)(ii)

8.06(5)

8.07(4)

December 2012–March 2013

22 709

Table A7: Commonwealth environmental watering actions for the Lachlan catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND

FLOODPLAIN

Lachlan Lower Lachlan

yes yes n/a To contribute to supporting: successful breeding of colonial

nesting waterbird species the habitat requirements of

waterbirds.

8.05(2)(b)

8.05(3)(a) and (b)

8.06(3)(b)(ii)

8.06(5)

8.07(4)

October 2012–November2012

222

Lachlan Lower Lachlan

yes yes yes To contribute to: improving the condition of native plant

communities, particularly river red gum communities, lignum stands and reed bed areas, and their ability to undertake many of their natural processes, such as flowering, seeding and germination

building resilience in the Lower Lachlan system so that the environment can survive through dry periods and the impacts of drought

providing in-stream benefits in the Lachlan River channel and fringing river areas as well as connecting the river to its lakes, creeks and wetlands which provides the opportunity for plants, animals and nutrients to move to new areas.

8.05(2)(a), (b) and (c)

8.05(3)(a) and (b)

8.06(2)

8.06(3)(a), (b)(i) and (f)

8.06(6)(b)

8.07(2) and (3)

June 2013–ongoing at 30 June 2013

50 837

Table A8: Commonwealth environmental watering actions for the Macquarie–Castlereagh catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX

SITE RIVER FLOWS

INUNDATIONWETLAND

FLOODPLAIN

Macquarie Macquarie River and Marshes

n/a yes n/a To contribute to: maintaining adequate water

levels across approximately 50 000 hectares of native wetland plant communities, including river red gums, to contribute to the ongoing regeneration of these communities that, in turn, provide habitat for many native animals

restoring the marshes, which are recognised as a wetland of international importance

maintaining the connection of low-lying water courses on the floodplain to improve water quality and allow native plants and animals to move between different areas

providing the type of flow required to support the habitat needs and breeding sites of migratory shorebirds and waterbirds such as glossy ibis, Australian white ibis, straw-necked ibis, intermediate egrets and rufus night herons.

8.05(2)(a) and (b)

8.06(3)(b)(i) and (ii)

8.06(6)(b)

November 2012–January 2013

100 000

Table A9: Commonwealth environmental watering actions for the Moonie catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND

FLOODPLAIN

Moonie River

Moonie River unregulated

yes n/a n/a To contribute to a more naturally variable flow regime that supports key ecosystem functions.

8.06(3)(b)(i)

8.06(6)(a) and (b)

January 2013–February2013

1415

Table A10: Commonwealth environmental watering actions for the Namoi catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND

FLOODPLAIN

Namoi River Lower Namoi River

yes n/a n/a To contribute to: inundating in-channel habitat

associated with riffles, pools and bars

maintaining water quality and carbon/nutrient cycling processes

supporting the abundance and diversity of native plants and animals (including fish, turtles and invertebrates) by providing them with opportunities to access a range of habitats for sheltering, migration, feeding and breeding.

8.05(3)(a)

8.06(3)(b)(i)

8.06(6)(a) and (b)

8.06(7)

November 2012–February 2013

7727

Table A11: Commonwealth environmental watering actions for the Broken, Campaspe, Goulburn, Loddon, and Ovens catchments in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND

FLOODPLAIN

Goulburn–Broken

Lower Broken Creek

yes n/a n/a To contribute to: facilitating fish movement through the

fishway at Rices Weir maintaining native fish habitat,

particularly during fish migration and breeding seasons (by maintaining optimal levels of dissolved oxygen and restricting excessive aquatic plant growth)

contributing to increased flows to the lower Murray River channel, Lower Lakes and Coorong for the purpose of maintaining aquatic habitat and supporting targeted lake levels, barrage releases and flows through the barrage fishways.

8.05(3)(a)

8.06(3)(b)(i)

8.06(6)(a)

8.06(7)

September 2012–May 2013

41 230

Goulburn–Broken

Upper Broken Creek

yes n/a n/a To contribute to: providing for more natural flow

variability providing a wet/dry zone at the channel

edge maintaining aquatic habitats during

periods of cease to flow consistent with patterns from storms

promoting successional change in community composition through disturbance and habitat diversity.

8.06(3)(b)(i)

8.06(6)(a)

8.07(4)

February 2013–March 2013

51

Campaspe Campaspe River

yes n/a n/a To contribute to: maintaining the health and existing

extent of river native plant communities, and provide reproduction and recruitment opportunities

providing habitat, breeding and

8.06(3)(b)(i)

8.06(6)(a) and (b)

8.06(7)

August 2012–May 2013

6820

recruitment opportunities for native fish and invertebrates

supporting ecosystem functions that relate to the mobilisation, transport and dispersal of sediment, nutrients and organic matter

supporting lateral and longitudinal connectivity to maintain native plant and animal communities

creating and maintaining river bed and bank habitat.

Goulburn–Broken

Goulburn River

yes n/a n/a To contribute to: complementing natural flows and

supporting the on-going recovery of river-dependent native animals and plants

achieving multiple environmental benefits in the Murray River channel, Lower Lakes and Coorong.

8.05(3)(a)

8.06(3)(b)(i)

8.06(7)

July 2012–January 2013

69 383

Goulburn–Broken

Goulburn River

yes n/a n/a To contribute to supporting: breeding and recruitment of native plant

and animal communities ecosystem functions that relate to

mobilisation, transport and dispersal sediment, nutrients and organic matter

ecosystem functions that relate to connectivity along the river to maintain reproduction and recruitment opportunities for native plant and animal communities.

8.05(3)(a)

8.06(3)(b)(i)

8.06(7)

January 2013–June 2013

131 714

Loddon Loddon River

yes n/a n/a To contribute to: supporting a range of native plants and

animals, particularly through enabling native fish movement and improvements to macroinvertebrate habitat

maintaining native plant communities along the river in a healthy, dynamic and resilient condition

supporting key ecosystem functions, particularly those related to connectivity

8.06(3)(b)(i)

8.06(6)(a)

8.07(3)

November 2012

2745

along the river.

Ovens Ovens River yes n/a n/a To contribute to: maintaining the health of native plant

communities in riverbank areas, such as river red gums

supporting and connecting the habitat of native animal communities in the river, including fish, frogs, turtles and insects.

8.06(3)(b)(i)

8.06(6)(a)

April 2013–June 2013

20

Table A12: Commonwealth environmental watering actions for the Murray catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX

SITE RIVER FLOWS

INUNDATION

WETLAND

FLOODPLAIN

Edward–Wakool

Jimaringle, Cockran and Gwynnes creeks

yes n/a n/a To contribute to: providing flows to maintain and

improve water quality within the creeks, particularly salinity

maintaining and improving the health of native plant communities in the creeks including river red gum, black

box and lignum providing good-quality habitats in

which native animal communities, such as the pobblebonk frog, Peron’s tree frog and wrinkled toadlet, can successfully breed and grow.

8.06(3)(a)

8.06(6)(a)

8.06(7)

August 2012–November2012

3000

Edward–Wakool

Tuppal Creek yes n/a n/a To contribute to: providing flows through the system

to maintain and improve water quality within the creek, particularly salinity

maintaining and improving the health

8.06(3)(a)

8.06(6)(a)

8.06(7)

October 2012–December2012

2000

of native plant communities in the creek including river red gum, black box and lignum

contributing to providing good-quality habitat that supports the breeding and recruitment of native animals, particularly frogs.

Edward–Wakool

Edward River, Wakool River, Colligen and Yallakool creeks

yes n/a n/a To contribute to supporting: the movement, breeding and

recruitment of native fish (such as Murray cod, and golden and silver perch)

the habitat requirements of native fish and other native animals including frogs, turtles and invertebrates

ecosystem functions that relate to the connectivity of habitats along the watercourse.

8.05(3)(a)

8.06(3)(b)(i)

8.06(7)

October 2012–April 2013

28 943

Murray Gunbower Creek

yes n/a n/a Use of return flows to contribute to providing good-quality habitats in which native fish communities, including golden perch and silver perch, Murray cod, trout cod and the crimson spotted rainbowfish, can successfully migrate, breed and grow.

8.05(3)(a) August 2012–ongoing at 30 June 2013

2158

Murray Disher Creek yes yes n/a Use of return flows to contribute to: maintaining water quality at levels

suitable for providing habitat for Murray hardyhead (a native fish).

8.05(3)(a)

8.06(3)(b)(i) and (ii)

8.06(6)(a)

December 2012–June 2013

250

Murray Murray River yes yes n/a To contribute to: maintaining and improving the

health of riparian and wetland native plants

encouraging breeding and supporting the survival of native fish such as Murray cod, silver perch, golden perch and freshwater catfish

connecting habitats along the river and between the river channel and

8.05(2)(b) and (c)

8.05(3)(a)

8.06(3)(b)(i) and (ii)

8.06(6)(a) and (b)

8.07(3)

November 2012–January 2013

300 000

fringing wetlands transporting and dispersing

materials such as sediment, nutrients and organic matter

providing additional inflows to the Lower Lakes to improve water quality, enable barrage releases to the Coorong, help manage salinity and seasonal water levels for native water plants such as Ruppia tuberosa.

Murray Berri Basin yes yes n/a Use of return flows to contribute to: maintaining water quality at levels

suitable for providing habitat for Murray hardyhead

providing freshwater inflows to cue Murray hardyhead spawning.

8.05(3)(a)

8.06(3)(b)(i) and (ii)

8.06(6)(a)

December 2012–June 2013

543

Murray Clarks Floodplain

yes yes n/a Use of return flows to contribute to: providing breeding and recruitment

opportunities for native river bank plants including river red gums and black box

maintaining the health of existing native plant communities by freshening the floodplain soil and reducing the impact of salinity

improving native plant diversity by promoting the establishment of an understorey cover of salt-tolerant plants.

8.06(3)(b)(i) and (ii)

8.06(6)(a)

February 2013–June 2013

60

Murray Whirlpool Corner

yes yes n/a Use of return flows to contribute to: providing suitable conditions to

support the recruitment of river red gum seedlings

freshening the groundwater lens around the wetland to support the health of fringing vegetation

supporting habitat for threatened waterbirds and frogs.

8.05(2)(a)

8.05(3)(a)

8.06(3)(b)(i) and (ii)

8.06(6)(a)

December 2012–June 2013

91

Murray Ramco Lagoon yes yes n/a Use of return flows to contribute to supporting the recruitment of black box seedlings within

8.05(2)(c) March 2013–May

1

the wetland that naturally regenerated after the 2010–11 floods.

2013

Murray Lower Lakes, Coorong and Murray Mouth

yes yes n/a To contribute to: achieving water level and salinity

targets in Lake Alexandrina and Lake Albert, supporting the establishment of wetland native plants, the recruitment of native fish and frogs, and the availability of waterbird habitat

achieving salinity and seasonal water level targets in the Coorong that provides suitable conditions for the recruitment of Ruppia tuberosa and Murray hardyhead populations, and the availability of waterbird habitat in the South Lagoon

increasing the transport of salt and nutrients from the Murray River channel and through the Murray Mouth.

8.05(2)(a) and (b)

8.05(3)(a)

8.06(3)(b)(i) and (ii)

8.06(3)(c)

8.06(6)(a) and (b)

8.06(7)

December 2012–April 2013

98 853

Murray Lower Lakes, Coorong and Murray Mouth

yes yes n/a To contribute to: maintaining hydrological connectivity

between the Murray River, Lake Alexandrina, Coorong and Murray Mouth that will support fish movement and increase export of salt and nutrients

improve habitat conditions in the Coorong (North and South Lagoon) to support native fish, waterbird and plant condition

supporting increased ecosystem resilience in the Coorong and Lower Lakes that will continue the recovery of native plant and animal communities and increase resilience in the occurrence of dry inflow scenarios in 2013–14 and 2014–15.

8.05(2)(a), (b) and (c)

8.05(3)(a) and (b)

8.06(2)

8.06(3)(a)

8.06(3)(b)(i)

8.06(3)(f)

8.06(6)(b)

8.07(2)

8.07(3)

March 2013– June 2013

150 000

Murray Lower Lakes, Coorong and

yes yes n/a Use of return flows from environmental watering actions in the Victorian tributaries to

As per actions in the Lower Lakes, Coorong

July 2012– 237 118

Murray Mouth contribute to expected environmental outcomes from actions in the Lower Lakes, Coorong and Murray Mouth.

and Murray Mouth detailed above

June 2013

Table A13: Commonwealth environmental watering actions for the Murrumbidgee catchment in 2012–13LOCATION OF WATERING ACTION

TYPE OF ACTION EXPECTED ENVIRONMENTAL OUTCOME(S) OF WATERING ACTION

ENVIRONMENTAL WATERING PLAN OBJECTIVE(S)

TIMING TOTAL COMMONWEALTH ENVIRONMENTAL WATER DELIVERED (ML)

COMPLEX SITE RIVER FLOWS

INUNDATION

WETLAND

FLOODPLAIN

Mid Murrumbidgee

Murrumbidgee River channel

yes n/a n/a To contribute to: maintaining inundation of native

fish breeding habitat long enough to ensure breeding success

increasing flows to help native fish disperse throughout the river at the end of the breeding season

providing a gradual decrease in flows to limit the risk of stranding native fish that may have continued to occupy breeding habitat.

8.05(3)(a and b)

8.06(3)(b)(i)

8.06(6)(a and b)

October 2012–December 2012

150 000

Lower Murrumbidgee

Western floodplain lakes and wetlands

yes yes yes To contribute to: maintaining the health and

regeneration of native plant communities in Cherax Swamp, Yarrawol Creek and Narwie West, reed bed and black box wetlands

establishing and growing native plant communities in Hobblers Lake and Penarie Creek which have been isolated from the floodplain and have not received environmental water before

providing good-quality habitat for native animals including waterbirds, fish and frogs.

8.05(3)(a)

8.06(3)(b)(ii)

8.06(6)(a and b)

September 2012–December 2012

6000

Appendix D—Commonwealth environmental water carryover into 2013–14 Table A14: Summary of Commonwealth environmental water carryover in the Murray–Darling Basin into 2013–14PART OF BASIN WATER SOURCE CARRYOVER (GL)Southern Connected Basin Victorian Murray 87.6

Goulburn 15.3

New South Wales Murray 20.1

Murrumbidgee 45.5

Northern Basin Lachlan 65.6

Macquarie and Cudgegong 23.1

Gwydir 121.6

Namoi 5.5

Border Rivers 8.7

Total 393

Corporate Outcome: ORGANISATIONAL EFFECTIVENESSImprove the effectiveness and efficiency of our department.

Main responsibilities for this outcomeHigh-level strategic advice and support services to the minister, secretary and executive on cross-portfolio matters.

Strategic planning.

Secretariat services.

Legal advice.

Communication and stakeholder relations.

Ministerial and parliamentary business.

Program, project, risk, compliance and fraud services.

Policy and Communications Division

Human resources.

Financial management and reporting.

Office accommodation.

Environmental management systems.

Information communications technology.

Corporate Strategies Division

The department’s corporate outcome is to improve organisational effectiveness and efficiency through strengthening governance and accountability frameworks, including better management of projects and risks, strengthening whole-of-agency financial management capability; effective coordination of cross-cutting issues, best practice workforce management, strategic and innovative policy and technical advice, and greater use of knowledge, information and technology.

Corporate governanceThe department’s governance framework assists the department in delivering policy, program and regulatory objectives efficiently, effectively and ethically.

Corporate and operational planning The department’s Strategic Plan provides a high-level statement of the department’s mission, outcome structure and strategic priorities over the next four years. The plan is a public document and is reviewed annually to reflect the government’s policies and priorities. During 2012–13 the Strategic Plan was reviewed and a revised Strategic Plan 2013–2017 was released in June 2013.

The department also prepares an Annual Operational Plan, which details how the outcomes and priorities identified in the Strategic Plan and the Portfolio Budget Statements will be achieved. The Annual Operational Plan guides the development of division, branch and section planning documents, on which the performance agreements of individual staff are based.

Collectively, these elements provide the framework for the department’s corporate and operational planning.

Oversight of corporate and operational planning is aided by monthly reporting to the Executive Board. This reporting outlines the significant developments and risks associated with all major external and internal projects.

Table 1: Senior management committees and their rolesNAME OF COMMITTEE ROLEExecutive Board To provide assistance and advice to the Secretary

in meeting responsibilities under the Public Service Act 1999 to manage the department and meet accountability obligations to the parliament. As the central governance mechanism for the department, the Executive Board fulfils a leadership role in cross-cutting issues and decisions.

Workforce Management Committee To oversee the department’s achievement of best practice workforce management and to provide the Executive Board with recommendations on workforce policy.

Departmental Audit Committee To provide independent assurance to the Secretary on the integrity and reliability of the department’s management of financial processes, risk and fraud control.

Departmental Consultative Committee To promote good workplace relations in the department by providing a forum for consultation and exchange of information between management, staff and their representatives.

Departmental Environmental Performance Committee

To strengthen whole-of-department environmental performance and management and contribute to reducing any negative environmental impact of the department’s operations.

Departmental Health and Safety Committee To develop and maintain a partnership between management and workers to strategically manage the health, safety and welfare of all workers, visitors and third parties to the department.

Graduate Steering Committee To oversee the quality, appropriateness and operation of the department’s Graduate Program and provide guidance in relation to policy and direction.

Reconciliation Action Plan (RAP) Steering Committee

To oversee the development and implementation of the department’s RAP. Members champion the RAP and Indigenous issues within their division.

Regulatory Compliance Executive Committee To promote and guide consistent and effective regulatory compliance and enforcement work by the portfolio.

Incident Management Steering Committee To provide assurance and assistance to the Secretary on the operation and management of the department’s incident management framework. The committee is chaired by the Chief Operating Officer and reports to the Executive Board.

Internal auditThe department has a dedicated Internal Audit Section which was supported by PricewaterhouseCoopers, the appointed internal audit service provider to the department. During 2012–13 the internal audit program was delivered in line with the approved Internal Audit Work Plan. The internal audit function provides the secretary, through the Departmental Audit Committee, independent assurance that internal controls designed to manage organisational risks and achieve the department’s objectives are operating in an efficient, effective and ethical manner. Internal audit achieves this largely by communicating best practices and lessons learnt while monitoring implementation of audit recommendations.

The Departmental Audit Committee provided independent assurance to the secretary on the integrity and reliability of the department’s management of financial processes, risk and fraud control. Five meetings were held during 2012–13.

Ms Elizabeth Montano continued as Chair of the committee. In February 2013 the committee membership was reduced from six to five members with the expiry of Ms Evelyn Bosak’s appointment as an independent member.

Observers at the committee meetings include the Chief Operating Officer, First Assistant Secretary Policy and Communications Division, Assistant Secretary Governance and Legal Branch, the Chief Financial Officer,

representatives of the Australian National Audit Office (ANAO) and the internal audit service provider.

Table 2: Departmental Audit Committee membership and meeting attendance 2012–13MEMBER ROLE NO. OF MEETINGS

MEMBER IS ELIGIBLE TO ATTEND

NO. OF MEETINGS ATTENDED

Elizabeth Montano Independent chair 5 5

Evelyn Bosak Independent member 3 0

Geoff Knuckey Independent member 5 5

Michael Roche Independent member 5 4

David Parker Member (Deputy chair) 5 4

Sean Sullivan Member 5 4

Risk managementIn 2012–13 the department has further refined and improved its approach to risk management, providing specialist risk management support to all divisions. Work is underway to update the risk management framework with new guidance material and tools. Engaging appropriately with risk and participating in the risk management process are pivotal themes for developing the risk management capability across the department.

The department continues to support other portfolio agencies in their approach to risk management, including the Director of National Parks and the Great Barrier Reef Marine Park Authority.

The department’s 2011–12 annual report stated a vision to be a leader in risk management across government within three years. The recent 2013 Comcover Risk Management Benchmarking Survey results indicate that this journey is well established. The survey recorded a score of 8.4 for the department, which exceeded the total population score of 6.8 (143 Australian Government agencies).

Fraud controlIn 2012–13 the department reviewed its fraud control plan, following a comprehensive department-wide fraud risk assessment. There is a focus on consideration of fraud risk as part of general risk assessment activities across the department’s operations.

Fraud awareness programs have been developed and are being delivered across the department to provide greater fraud awareness and a focus on fraud prevention.

The department provides guidance for staff on identifying suspected fraud. Where suspected fraud is identified, the department takes action or refers matters to appropriate enforcement agencies. Of 16 cases of suspected fraud identified during 2012–13, the Australian Federal Police has not accepted any for further investigation. All 16 cases related to instances of suspected fraud external to the department.

In accordance with the Commonwealth Fraud Control Guidelines, the department has prepared fraud risk assessments and fraud control plans. It has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures to meet its needs and has taken all reasonable measures to minimise the incidence of fraud and to investigate and recover the proceeds of fraud.

Business continuity planThe department’s Business Continuity Plan describes the arrangements to be used to ensure continuity of key services after a major, unexpected and disruptive incident. It details the management structure, staff roles, responsibilities and actions that would be implemented in the event of a major incident.

The Business Continuity Plan forms part of a broader Incident Management Structure that provides for an effective response Australia wide. The Incident Management Structure captures plans across the department, including the IT Disaster Recovery Plan, Crisis Communication Plan, Security Plan and Pandemic Plan.

The Business Continuity Plan is overseen by the recently formed Incident Management Steering Committee. Appropriate maintenance, training and testing regimes have been implemented on an ongoing basis.

Certificate of compliance The department’s financial control framework includes the Certificate of Compliance. During the year the department implemented a new online real-time breach-recording system and moved to undertaking a self-assessment process twice a year. Results are provided to management and the Departmental Audit Committee. Other steps taken by the department to improve its performance include:

ongoing development of the finance portal to improve accessibility of guidance material

continual enhancements to the finance practice manual ongoing commitment to training and education using a variety of approaches rollout of system improvements to the department’s financial management information system regular communication to all staff of any changes to the financial management framework a continuation of risk-based substantive testing of financial transactions.

External scrutinyCourts and tribunalsLee and Anor v Commonwealth of Australia and Anor [HC no. 5 of 2012]The Commonwealth of Australia and the Murray–Darling Basin Authority have been named as respondents in proceedings originally commenced in the High Court but since transferred to the Federal Court [No. VID 1129 of 2012].

The applicants have challenged the constitutional validity of the Water Act 2007.

The parties were in the course of seeking orders resolving interlocutory issues at 30 June 2013.

Please refer to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) under Legislation Reporting for further details on judicial decisions and decisions of administrative tribunals that have had, or may have, an impact on the operations of the department.

Commonwealth OmbudsmanThe Commonwealth Ombudsman did not issue any formal reports about the operation of the department.

The department received three notifications of investigation in relation to particular programs. These matters are yet to be finalised.

The three matters outstanding from 2011–12 were all finalised on the basis of the Ombudsman’s determination that no further investigation was warranted.

Auditor-General reportsThe ANAO released three performance audits specific to the department during 2012–13. The department was also selected for detailed analysis in the cross-agency audit, Audit Report No.4 2012–13 Confidentiality in Government Contracts: Senate Order for Departmental and Agency Contracts.

Audit Report No.11 2012–13 Establishment, Implementation and Administration of the Quarantined Heritage Component of the Local Jobs Stream of the Jobs FundIn response to the global financial crisis, the Australian Government agreed to the establishment of an integrated $650 million Jobs Fund in March 2009, with $60 million quarantined under the Local Jobs stream for heritage-related projects.

Two recommendations were made in relation to the use of external advisory panels to identify and/or assess candidates for funding under future grant programs and improvements to the assessment processes of applications from future competitive, merit-based grant programs.

The department agreed with the audit recommendations and is committed to continuous improvement in grants administration processes. This has included implementation of a Grants Administration Framework in June 2011 and establishment of the Portfolio Project Management Office in May 2012.

Audit Report No.32 2012–13 Grants for the Construction of the Adelaide Desalination PlantThe $1 billion National Urban Water and Desalination Plan was outlined in the election policy document Labor’s

national plan to tackle the water crisis. It aimed to secure the water supplies of Australia’s major cities and, among other announcements, included an unquantified commitment to provide funding towards the construction of a desalination plant for Adelaide.

The ANAO made one recommendation to the department in relation to grant spending proposals from election commitments. The department agreed with the audit recommendation.

Audit Report No.36 2012–13 Commonwealth Environmental Watering ActivitiesThe environmental watering function of the Commonwealth Environmental Water Holder (CEWH) is a relatively new area of Commonwealth activity and a key element of the reforms introduced by the Australian Government to address the imbalance between consumptive and environmental water use in the Murray–Darling Basin. The Commonwealth Environmental Water Office (CEWO), which supports the CEWH, has developed and continues to refine environmental watering frameworks, policies and practices to manage and use water entitlements within a complex set of Basin system management rules.

The department noted the ANAO’s findings that the department’s strategies for managing environmental water are generally sound and that the existing arrangements are appropriate. While no recommendations were made, the department supported the suggestions made in the report to further strengthen the management of Commonwealth environmental water.

Parliamentary committee reportsHouse Standing Committee on Regional Australia—Cancer of the bush or salvation for our cities? Fly-in, fly-out and drive-in, drive-out workforce practices in Regional AustraliaOn 13 February 2013 the House Standing Committee on Regional Australia tabled its report on the inquiry into the use of ‘fly-in, fly-out’ (FIFO) and ‘drive-in, drive-out’ (DIDO) workforce practices in regional Australia.

The inquiry examined the locations, extent and projected growth of FIFO/DIDO practices, the social and economic benefits to and impacts on source and receiving communities, related infrastructure and social service requirements, and the initiatives and responses to FIFO/DIDO practices from all three levels of government.

An interdepartmental committee chaired by the Department of Regional Australia, Local Government, Arts and Sport is preparing a response to the report.

Senate Rural and Regional Affairs and Transport References Committee—Management of the Murray–Darling Basin system: Second interim report: The Basin PlanThe committee tabled its report on 3 October 2012. The department coordinated the government response, which was tabled on 31 May 2013. The department attended the inquiry on 23 August and 23 November 2012.

Senate Environment and Communications Legislation Committee—Water Amendment (Long-term Average Sustainable Diversion Limit Adjustment) Bill 2012 [Provisions] and the Water Amendment (Water for the Environment Special Account) Bill 2012 [Provisions]The committee tabled its report on 28 November 2012. The department coordinated the government responses, which were tabled on 31 May 2013. The department attended the inquiry on 12 November 2012.

House of Representatives Standing Committee on Regional Australia—Report into certain matters relating to the proposed Murray–Darling Basin PlanThe committee tabled its report on 6 July 2012. The department coordinated the government response, which was tabled on 3 June 2013.

Senate Standing Committee on Rural and Regional Affairs and Transport Committee—Report into the Management of the Murray–Darling BasinThe committee tabled its report on 13 March 2013. The department coordinated the government response, which was tabled on 31 May 2013.

House of Representatives Standing Committee on Regional Australia—Water Amendment (Water for the Environment Special Account) Bill 2012Department officials participated as witnesses in the public hearing on the inquiry into this Bill on 20 November 2012.

Senate Standing Committee on the Environment and Communications—Inquiry into recent trends in and preparedness for extreme weather eventsDepartment officials participated as witnesses in the public hearing on this inquiry on 11 April 2013.

Senate Standing Committees on Environment and Communications Legislation Committee—Environment Protection and Biodiversity Conservation Amendment Bill 2013 [Provisions]Department officials participated as witnesses in the public hearing on this inquiry on 18 April 2013.

The Senate Standing Committees on Environment and Communications Legislation Committee—Environment Protection and Biodiversity Conservation Amendment Bill 2013The Bill amended the EPBC Act to create a matter of environmental significance for coal seam gas and large coal mining developments, which are likely to have a significant impact on a water resource; and to establish penalties and offences to prohibit such action. The committee’s report was tabled on 14 May 2013. The Bill passed both houses on 19 June 2013 and received assent on 21 June 2013.

The Senate Standing Committees on Environment and Communications Legislation Committee—Environment Protection and Biodiversity Conservation Amendment (Great Barrier Reef) Bill 2013The Bill proposed to amend the EPBC Act to prohibit developments within and outside existing port areas along the Great Barrier Reef coastline; implement a moratorium from 20 March 2013 on approval of developments impacting on the Great Barrier Reef World Heritage Area until a strategic assessment is completed and deemed adequate by the World Heritage Committee; and prohibit approval of any developments that do not deliver a net benefit to the Great Barrier Reef World Heritage Area. The committee’s report was tabled on 13 March 2013. At 30 June 2013, the Bill remained before the Senate for debate.

The Senate Standing Committees on Environment and Communications Legislation Committee—Environment Protection and Biodiversity Conservation Amendment (Retaining Federal Approval Powers) Bill 2012The Bill proposed to amend the EPBC Act to prevent the Commonwealth from delegating the approval of proposed actions covered by bilateral agreements to a state or territory. The committee’s report was first tabled on 12 March 2013. At 30 June 2013, the Bill remained before the Senate for debate.

The House Standing Committee on Climate Change, Environment and the Arts—Managing Australia’s biodiversity in a changing climate: the way forwardOn 17 June 2013 the House Standing Committee on Climate Change, Environment and the Arts tabled its final report on the inquiry into Australia’s biodiversity in a changing climate—Managing Australia’s biodiversity in a changing climate: the way forward. The report highlighted the certainty that climate change is occurring. It noted, however, that effects on Australia’s environment, particularly in relation to biodiversity, are unknown beyond models and theories that are being used to make informed projections.

The report recommended the development of national environmental accounts, a central national database to store scientifically accredited information, and a review of funding arrangements.

Senate Standing Committee on Community Affairs References Committee—Inquiry into the impacts on health of air quality in AustraliaOn 29 November 2012 the Senate referred an inquiry into the impacts on health of air quality in Australia to the Standing Committee on Community Affairs References Committee. The terms of reference for the senate

inquiry are to report on the impacts on health of air quality in Australia, including:

particulate matter, its sources and effects those populations most at risk and the causes that put those populations at risk the standards, monitoring and regulation of air quality at all levels of government any other related matters.

The department’s submission to the inquiry, submitted on 15 March 2013, focused on air quality as it relates to sustainability and communities, as well as the ways in which air quality is currently managed in Australia.

The department provided evidence at a public hearing in Canberra on 5 June 2013 and provided additional information sought at that hearing.

Senate Standing Committee on Environment and Communications References Committee—Inquiry into the operation of the South Australian and Northern Territory container deposit schemesOn 11 October 2012, the Senate referred an inquiry on the operation of the South Australian and Northern Territory container deposit schemes to the Senate Environment and Communications References Committee.

On 26 October 2012 the department provided a submission to the inquiry outlining that the Standing Council on Environment and Water had been assessing policy options for better managing packaging waste in Australia, including national container deposit schemes.

The committee tabled its final report on 22 November 2012, which outlined six recommendations. A dissenting report was also submitted outlining three recommendations. The committee recommended that a national container deposit scheme be implemented through the decision regulation impact statement process.

The department coordinated the Australian Government response to the report, which was tabled on 20 June 2013.

Joint Standing Committee on TreatiesIt is a requirement that when any amendments are made to the appendices of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) a national interest analysis be tabled in parliament for the scrutiny of the Joint Standing Committee on Treaties.

Amendments to appendices I and II of the CITES, arising from the 16th conference of the parties held in Bangkok, Thailand in March 2013, were tabled on 14 May 2013. The obligations arising from the amendments include the uplisting of freshwater sawfish (Pristis microdon) from Appendix II to Appendix I; and the inclusion of the porbeagle shark (Lamna nasus), oceanic whitetip shark (Carcharhinus longimanus), scalloped hammerhead shark (Sphyrna lewini), great hammerhead shark (Sphyrna mokarran), smooth hammerhead shark (Sphyrna zygaena) and the two manta ray species (Manta birostris and Manta alfredi) in Appendix II.

Departmental officers appeared at a public hearing on the matter on 24 June 2013.

Environmental sustainabilityThis section is presented in accordance with the requirements of section 516A of the EPBC Act.

Section 516A requires government departments to report on:

how their activities accord with the principles of ecologically sustainable development (subsection (6)(a))

how their outcomes, specified in relevant Appropriation Acts, contributed to ecologically sustainable development (subsection (6)(b))

the environmental impacts of their operations during the year, and measures taken to minimise those impacts (subsections (6)(c), (d) and (e)).

How the department applies the principlesThe department administers the EPBC Act, which promotes ecologically sustainable development through the conservation and ecologically sustainable use of natural resources.

Examples of how the department applies the principles of ecologically sustainable development are summarised below. More details on specific programs are given in the chapters covering outcomes 1 to 6 of this annual report.

Contribution of outcomesThe department is one of the leading Australian Government agencies for developing and implementing national policy, programs and legislation to protect and conserve the natural environment. A key function of the department is to promote and support ecologically sustainable development.

The department has produced guidelines for Australian Government agencies to report on how they contribute to ecologically sustainable development. The guidelines are available from the department’s website at: www.environment.gov.au/epbc/publications/reporting-guidelines.html.

The department’s outcomes contribute to ecologically sustainable development as follows:

Outcome 1: Biodiversity and ecosystems—conserving and protecting Australia’s terrestrial and marine biodiversity and ecosystems contributes to the conservation of biological diversity and ecological integrity, thereby helping to maintain the ecological processes on which life depends.

Outcome 2: Sustainable population and communities—promoting waste reduction and regulating hazardous substances, wastes, pollutants, ozone-depleting substances and synthetic greenhouse gases helps to prevent and minimise harm to the environment as a result of human activities.

Outcome 3: Antarctica—Australia’s Antarctic interests include a strong focus on protecting the Antarctic environment and managing the sustainable use of marine resources.

Outcome 4: Sustainable water—Australia’s water resources are managed and used sustainably and efficiently.

Outcome 5: Environmental protection and heritage conservation—Australia’s cultural, natural, Indigenous and historic heritage values are protected from activities that impact on the environment.

Outcome 6: Commonwealth environmental water—Commonwealth environmental water is managed to protect and restore environmental assets and contributes to a healthy and working Murray–Darling Basin.

Corporate outcome:

Organisational effectiveness—the department’s policies and use of technology actively consider and implement

strategies to minimise harm to the environment.

Table 3: How the department applies the principles of ecologically sustainable developmentPRINCIPLES ACTIVITIESIntegration principle: decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations.

To ensure that decision-makers, stakeholders and the wider public can effectively take long-term and short-term economic, social, environmental and ethical considerations into account, the Measuring Sustainability Program has developed a set of indicators that encompass economic capital, social and human capital and natural capital.

The National Sustainability Council, an independent body appointed in October 2012, released the first ‘Sustainable Australia Report: Conversations with our future’ in May 2013, providing information and analysis relating specifically to a wide cross-section of sustainability matters.

Precautionary principle: if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.

The department applies the precautionary principle to prevent serious environmental damage when assessing the possible environmental impacts of proposed actions. Assessments must often be made in the absence of full scientific certainty, most notably assessments under the Environment Protection and Biodiversity Conservation Act 1999, and through chemical and gene technology assessment schemes.

The precautionary principle is applied when making decisions on Commonwealth environmental water use. Operating in a highly variable (and at times, unpredictable) environment means decisions are often made in the absence of full scientific certainty of the ecological outcomes. Importantly, adaptive management processes (including a monitoring and evaluation program) have been implemented to ensure knowledge improves over time.

Intergenerational principle: the present generation should ensure that the health, diversity and productivity of the

The department applies laws and National Environment Protection Measures to prevent environmentally harmful substances entering the environment. Laws include the Environment Protection (Sea Dumping) Act 1981, Hazardous Waste

environment is maintained or enhanced, for the benefit of future generations.

Act (Regulation of Exports and Imports) Act 1989, the Fuel Quality Standards Act 2000 and the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.

The department seeks to ensure that environmental protection is appropriately considered in the development of other Australian Government policies, including major energy and water reforms as demonstrated in the development and provision of advice and research on coal seam gas and development of the Murray–Darling Basin Plan.

Commonwealth environmental watering contributes to building the resilience of aquatic ecosystems in the Murray–Darling Basin and ensuring they are healthy and productive for the ongoing benefit of current and future generations.

Biodiversity principle: the conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making.

The department applies laws for the conservation of biodiversity to protect wildlife and heritage places with environmental values, including the Environment Protection and Biodiversity Conservation Act 1999, and, through the Caring for our Country program, marine protected areas, terrestrial parks and reserves.

All Commonwealth environmental watering actions are assessed against a set of five criteria, which include consideration of the ecological value of the targeted asset(s).

Valuation principle: improved valuation, pricing and incentive mechanisms should be promoted.

The department administers incentives for more efficient use of resources. This includes markets for waste products, such as lubricating oils, and water-efficiency labelling. It also contributes to reducing packaging waste, as a signatory to the National Packaging Covenant.

The department continues to strengthen its/our economic analytical capability, to ensure that our programs and policies consider and incorporate better valuation of natural capital, and promote the use of pricing and incentive structures where appropriate.

Departmental environmental performanceThe department continues its commitment to ensuring that corporate operations reflect environmental best practice in a Public Service agency for urban office environments and remote/regional areas that the department is responsible for managing.

The department does this by:

fostering a culture of environmental responsibility at work, including mandatory online environmental training for new staff, departmental instructions for all staff on their environmental responsibilities and online Green at Work information for all staff

providing environmental training for regional and remote area field staff, scientists and support staff in sound environmental management practices in Antarctica, World Heritage areas, national parks and reserves

promoting efficient use of energy, water, paper and other natural resources preventing or minimising pollution, waste-to-landfill and greenhouse gas emissions favouring the purchase of more sustainable goods and services in line with the Commonwealth

Procurement Rules ‘whole-of-life costing’ requirements fulfilling our local, national and international legal and other obligations relating to environmental

management developing and implementing environmental management plans that identify and address significant

environmental risks and opportunities for environmental improvement at all major sites monitoring and reporting on our environmental performance, both internally and externally.

Due to the diverse nature of the department’s operations across Australia, the Southern Ocean and its territories, day-to-day operational environmental performance is managed at a local level. However, where relevant, whole-of-department policies, initiatives and reporting are coordinated. These include:

a Departmental Environmental Performance Committee representing different regional and interest areas

enhanced sustainability reporting and benchmarking under the Departmental Operations Environmental Policy by combining environmental reporting data from the three main office locations of the department

participation by all state/territory offices and all four stations located in the Antarctic and Macquarie Island in Earth Hour 2013.

The local area management approach is also supported by a number of local environmental performance committees, environmental policies and environmental performance action plans, including climate change plans for all national parks and the botanic gardens and action plans with targets for the Australian Antarctic Division (AAD) and the main Canberra offices.

The department has Environmental Management Systems (EMS) for the operations of the main Canberra offices and the AAD. These systems continue to be certified to the international standard for Environmental Management Systems (ISO14001:2004).

The department has an active environmental contact officer network (ECONet). These staff volunteer in conjunction with the local environmental performance managers/teams, continue to provide leadership, ideas and initiatives such as tours of recycling facilities and tree planting to support and promote a culture of environmental responsibility.

The department is continuing to improve its sustainability reporting and is participating for the second year in an Australian Government sustainability reporting pilot using the Global Reporting Initiative (GRI) framework as a base for reporting. One of the key aims of this initiative is to improve the comparability of government agencies’ reporting about organisational sustainability. The indicators used in last year’s report have been used again in this year’s report and should be directly comparable, giving a three-year trend.

This chapter presents a comprehensive overview of the environmental impacts resulting from the department’s office-based operations including energy use in our buildings and for travel; water use and resource efficiency; and waste. Summaries are provided for the activities of around 1765 full time equivalent (FTE) staff in our three main offices in Canberra; 326 staff (FTE) in our Kingston Office, Tasmania; and 64 staff (FTE) in our offices in Darwin and Jabiru. The department undertakes a considerable amount of work in non-office-based environments.

Environmental impacts from these operations are also reported on later in this chapter. A supplementary environmental report will be published online.

Canberra officesSites and staffingThe department’s Canberra office operations includes major office tenancies in the John Gorton Building in Parkes and 33 Allara Street in Civic, an office sublease at Lovett Tower in Woden and a warehouse in Queanbeyan. The total number of staff (FTE) located in these offices increased by nine per cent from 2011–12.

Environmental management frameworkThe department’s Canberra office EMS provides a framework and methodical approach to planning, implementing and reviewing efforts to reduce negative environmental impacts. The Canberra office EMS has maintained certification to the international standard for Environmental Management Systems (ISO14001:2004) since 1999.

During 2012–13 the department continued to improve the environmental management of the office operations in the Canberra offices. The Canberra Environmental Performance Committee made significant progress towards new targets for the reduction of office electricity and paper use, greenhouse gas emissions associated with business travel, waste sent to landfill and procurement processes.

EnergyOffice electricity use in 2012–13 decreased by 14 per cent overall due to a major lighting upgrade in one of the offices. Tenant light and power energy use was 4407 megajoules per person, well below the government target of 7500 megajoules per person per year. The department continued to purchase 100 per cent GreenPower for its sites in Canberra, resulting in an offset of 2324 tonnes CO2-e in 2012–13.

The distances travelled by departmental staff in fleet cars decreased by 29 per cent. The Canberra pool car fleet was reduced over the year and continued to be comprised of predominantly fuel-efficient hybrid vehicles and one electric vehicle. Since 2002 all greenhouse gas emissions from fleet fuel use have been offset through GreenFleet - 67 tonnes CO2-e were offset in 2012–13. The department also continued to provide a fleet of bicycles for staff to use in Canberra.

Resource efficiency and wasteThe Canberra offices continued to participate in the ACT Smart Office Recycling Program. Improved waste management practices and extensive staff engagement continued to result in a reduction in the waste sent to landfill. In 2012–13, 85 per cent of all office waste was diverted from landfill.

The department continued to purchase 100 per cent post consumer recycled copy paper. There was a reduction of 14 per cent per person in the amount of copy paper ordered from 2011–12 to 2012–13.

WaterAlthough the Canberra offices used 1293 kilolitres more potable water in 2012–13 than in 2011–12, due to the larger staff numbers this still represents a reduction of two per cent water use per person. The department continues to implement water-saving measures in all of its Canberra Offices including grey water recycling and the use of non-potable water for the water feature at the John Gorton Building.

Table 4: Summary of environmental indicators—Canberra officesINDICATOR 2010–11

RESULT 2011–12 RESULT

2012–13 RESULT

% CHANGE

Staffing

Average staffing levels (full time equivalent)

1460 1614 1765 9%

Office/building energy use

Total office tenant light and power

9 521 863 MJ 9 055 480 MJ 7 777 019 MJ -14%

Tenant light and power per person

6524 MJ/FTE 5610 MJ/FTE 4407 MJ/FTE -21%

Tenant light and power per square metre

253 MJ/m2 240 MJ/m2 206 MJ/m2 -14%

Total base building energy use n/a n/a n/a n/a

Base building energy use by area

n/a n/a n/a n/a

Building energy use (electricity and gas):

Laboratories Public Buildings Accommodation Warehouse

n/an/an/a

128 873 MJ

n/an/an/a

52 005 MJ

n/an/an/a

115 276 MJ

n/an/an/a

122%

GreenPower purchased as a proportion of total electricity purchased

100% 100% 100% 0%

Renewable energy generated 0 MJ 0 MJ 0 MJ 0%

Transport

Total number of fleet vehicles by location:

Canberra pool cars Other fleet cars

1510

1511

911

-40%0%

Total number of operational vehicles

n/a 2 2 0%

Average green vehicle guide (GVG) rating of fleet vehicles by location (score out of 20):

Canberra pool cars Other fleet cars

17.010.6

16.79.8

16.99.4

1%-4%

Average fuel consumption of fleet vehicles by location:

Canberra pool cars Other fleet cars 6.8 L/100 km

10.4 L/100 km6.0 L/100 km

10.6 L/100 km7.6 L/100 km

10.8 L/100 km27%2%

Fleet vehicle fuel consumption by type:

Unleaded petrol E10 petrol Diesel LPG

6799 L6013 L

20 430 L498 L

8297 L6758 L

19 246 L0 L

8552 L3623 L

13 086 L0 L

3%-46%-32%

0%

Total distance travelled by vehicle fleet

366 870 km 361 047 km 257 599 km -29%

Greenhouse gas emissions

Greenhouse gas emissions (after offsets) attributed to office tenant light and power

0 t CO2-e 0 t CO2-e 0 t CO2-e 0%

Greenhouse gas emissions attributed to base building energy use

n/a n/a n/a n/a

Greenhouse gas emissions (after offsets) attributed to energy used by:

Laboratories Public buildings Accommodation Other—warehouse

n/an/an/a

n/an/an/a

n/an/an/a

n/an/an/a

0 t CO2-e 0 t CO2-e 0 t CO2-e 0%

Greenhouse gas emissions (after offsets) attributed to fleet vehicles

0 t CO2-e 0 t CO2-e 0 t CO2-e 0%

Greenhouse gas emissions attributed to operational aircraft use

n/a n/a n/a n/a

Total greenhouse gas emissions after offsets (not including commercial flights and waste)

0 t CO2-e 0 t CO2-e 0 t CO2-e 0%

Total greenhouse gas emissions after offsets (not including commercial flights and waste) per person

0 t CO2-e/FTE 0 t CO2-e/FTE 0 t CO2-e/FTE 0%

Water consumption

Total metered potable office water use

18 514 kL 17 991 kL 19 284 kL 9%

Total metered potable office water use per person

13 kL/FTE 11 kL/FTE 11 kL/FTE -2%

Total metered potable office water use by area

0.48 kL/m2 0.48 kL/m2 0.51 kL/m2 7%

Resource efficiency and waste

Internal copy paper per person 13.4 reams/FTE 10.9 reams/FTE 9.3 reams/FTE -14%

Percentage of paper purchased with post consumer recycled content

100% 100% 100% 0%

Office paper recycled 119.0 t 111.7 t 137.4 t 23%

Other waste sent to recycling facilities (excluding office paper):

Cardboard Co-mingled office

waste Organic waste

12.4 t35.3 t

30.0 t

14.2 t34.1 t

23.7 t

16.0 t25.3 t

27.7 t

12%-26%

17%

Waste sent to landfill 53.3 t 44.7 t 35.8 t -20%

Total waste production 250.0 t 228.5 t 242.2 t 6%

Total waste produced per person n/a n/a 23.3 kg/FTE n/a

Total waste recycled per person n/a n/a 134.1 kg/FTE n/a

Proportion of waste diverted from landfill

79% 80% 85% 6%

Notes: For work health and safety reasons, the department’s waste provider changed the pickup, weighing and reporting

arrangements for the waste to landfill, cardboard and co-mingled recycling streams during the reporting period. This data is not directly comparable to previous year’s data.

Fuel quality testing vans have been separated from the passenger fleet and reported as operational vehicles resulting in a minor update to the vehicle indicators.

Darwin/Jabiru officesSites and staffingThe Darwin/Jabiru operation covers two premises—the Darwin office and the Jabiru field station. These accommodate staff from the Supervising Scientist Division Darwin/Jabiru (SSD) and the Parks Operations and

Tourism Branch (POT), Parks Australia. The Darwin office is shared by the SSD and POT. SSD buildings at both sites are used for office and laboratory operations as well as storage of plant and equipment. POT only uses office space in Darwin. The Jabiru facility is also shared with a commercial tenant. It should be noted that calculations reported per person for electricity and water use at the Jabiru site will be inflated as the electricity and water totals are for both staff and commercial tenants but only departmental staff numbers have been used to calculate the per person figures. Staffing levels have increased by one FTE staff member.

Environmental management frameworkDarwin/Jabiru contributes to the department’s sustainability objectives through a range of measures aimed at continuously improving the environmental performance of business operations and minimising any associated environmental impacts.

Although there is no formal environmental management system in place, the Darwin/Jabiru operations are conducted in a manner consistent with the department’s aim to minimise the ecological footprint on the environment. This involves a range of strategies including complying with legal and other agreements, actively promoting sustainable work practices, preventing pollution as a result of work practices, focusing on continuous improvement, public reporting of environmental performance as part of the department’s annual report, and procurement and use of sustainable goods and services.

EnergyDuring 2012–13 total power consumption for all sites combined increased by 29 per cent from the previous year. With an aim to more effectively manage humidity build-up, major project work was undertaken to modify the Darwin laboratory building air-conditioning system. This has had an unexpected impact on the energy usage for the Darwin site resulting in an increase of 30 per cent for 2012–13. Continued routine maintenance of electrical items, including testing and tagging electrical items and replacing faulty and aged equipment, assists with the more efficient use of electricity. Due to its remote location Jabiru often has power blackouts. The office uses a generator for electricity during these times. Accordingly there are fluctuations every year in the amounts of electricity bought and electricity generated. It is important to note that both sites do not have separate metering, so individual components of the electricity reporting are estimates only, based on area.

Vehicle mileage decreased by six per cent from 162 655 kilometres to 152 310 kilometres, resulting in an overall decrease in fuel use of three per cent. Although there was an increase of seven per cent in diesel use, it was balanced out by the elimination of use of unleaded petrol (ULP). As fleet vehicle leases have expired, ULP vehicles have been replaced with more fuel-efficient diesel vehicles. At 30 June 2013 the SSD and POT had a fleet of diesel vehicles used primarily for travel to and from Darwin and Jabiru and for off-road remote fieldwork activities. Fleet vehicles have an average green vehicle guide (GVG) rating of nine and use an average of 9.18 litres per 100 kilometres.

The continued reduction of distances travelled has been achieved through initiatives such as car pooling and the use of videoconferencing facilities instead of driving or flying long distances to attend meetings.

Total greenhouse gas emissions for the Darwin office and Jabiru field station in 2012–13 were 839 tonnes CO2-e, an increase of 22.4 per cent compared with 2011–12. This higher emissions figure includes increases of 22.9 per cent in electricity and 3.2 tonnes CO2-e resulting from the need to run a generator to supply electricity at the Jabiru Field Station.

Resource efficiency and wasteThe waste figures reported are for Darwin only. The Jabiru field station does not collect data on waste, although it continues to sort waste to be recycled at the local waste repository. There was a decrease in total waste between 2011–12 and 2012–13. There was a six per cent (0.72 tonne) decrease in landfill waste, no change in paper product waste and a 41 per cent decrease in co-mingled waste (plastic/glass/cardboard) sent for recycling. Changes in the co-mingled waste figures are due to a different billing approach resulting in a more accurate measuring method. Darwin continues to operate a worm farm for recycling organic food waste.

All paper purchased is a partially recycled product. As with other areas in the department, the move to swipe-to-print technology has resulted in a decrease in paper purchased compared with 2011–12; for the SSD there was a 19 per cent reduction in the total amount of paper purchased. The organisation provides copies of all publications on the SSD website, which has reduced the need to print publications for stakeholders.

The SSD is currently working with the department to roll out a full electronic document record management system called SPIRE, which will be fully operational in early 2013–14. This will significantly reduce paper usage as all hardcopy files will be closed and all SSD departmental information will be maintained electronically.

Table 5: Summary of environmental indicators—Darwin/JabiruINDICATOR 2010–11

RESULT 2011–12 RESULT

2012–13 RESULT

% CHANGE

StaffingAverage staffing levels (full time equivalent)

68 63 64 2%

Office/building energy useTotal office tenant light and power

782 330 MJ 727 167 MJ 935 056 MJ 29%

Tenant light and power per person

11 488 MJ/FTE 11 542 MJ/FTE 14 565 MJ/FTE 26%

Tenant light and power per square metre

429 MJ/m2 399 MJ/m2 513 MJ/m2 29%

Total base building energy use

782 330 MJ 727 167 MJ 935 056 MJ 29%

Base building energy use by area

429 MJ/m2 399 MJ/m2 513 MJ/m2 29%

Building energy use (electricity and gas):

Laboratories Public buildings Accommodation Other—warehouse

984 457 MJn/an/a

819 666 MJ

915 042 MJ n/an/a

761 870 MJ

1 176 642 MJ n/an/a

979 680 MJ

29%n/an/a

29%GreenPower purchased as a proportion of total electricity purchased

0% 0% 0% 0%

Renewable energy generated

0 MJ 0 MJ 0 MJ 0%

TransportTotal number of fleet vehicles

8.5 8.5 9 6%

Total number of operational vehicles

n/a n/a n/a n/a

Average green vehicle guide (GVG) rating of fleet vehicles (score out of 20)

8.3 8.6 9.0 5%

Average fuel consumption of

fleet vehicles

14.2 L/100 km 12.7 L/100km 9.2 L/100km -28%

Fleet vehicle fuel consumption by type:

Unleaded petrol E10 petrol Diesel LPG

2184 Ln/a

13 547 Ln/a

1284 Ln/a

13 642 Ln/a

0 Ln/a

14 549 Ln/a

-100%n/a7%n/a

Total distance travelled by vehicle fleet

170 568 km 162 655 km 152 310 km -6%

Greenhouse gas emissionsGreenhouse gas emissions attributed to office tenant light and power

161 t CO2-e 150t CO2-e 184 t CO2-e 23%

Greenhouse gas emissions 161 t CO2-e 150t CO2-e 184 t CO2-e 23%

attributed to base building energy useGreenhouse gas emissions attributed to energy used by:

Laboratories Public buildings Accommodation Other—warehouse

203 t CO2-en/an/a

169 t CO2-e

189 t CO2-en/an/a

157 t CO2-e

232 t CO2-en/an/a

193 t CO2-e

23%n/an/a

23%Greenhouse gas emissions attributed to fleet vehicles

45 t CO2-e 40 t CO2-e 42 t CO2-e 5.5%

Greenhouse gas emissions attributed to operational aircraft use

n/a n/a n/a n/a

Total greenhouse gas emissions (not including commercial flights and waste)

760 t CO2-e 686 t CO2-e 839 t CO2-e 22%

Total greenhouse gas emissions (not including commercial flights and waste) per person

9.6 t CO2-e 10.9 t CO2-e 13.1 t CO2-e 12%

Water consumptionTotal metered potable water use (office, lab and irrigation)

Darwin Jabiru

2202 kL10 111 kL

10 745 kL8 217 kL

6324 kL3801 kL

-41% -54%

Total metered potable water use per person (office, lab and irrigation)

n/a n/a n/a n/a

Total metered potable water use by area

n/a n/a n/a n/a

Resource efficiency and wasteInternal copy paper per person

7.2 reams/FTE 6.4 reams/FTE 5.5 reams/FTE -15%

Percentage of paper purchased with post consumer recycled content

100% 100% 100% 0%

Office paper recycled 0. 6 t 0.5 t 0.5 t 0%Other waste sent to recycling facilities (excluding office paper):

Co-mingled office waste

Organic waste

11.2 t

Not measured

10.7 t

Not measured

6.3 t

Not measured

-41%

Not measuredWaste sent to landfill 12.0 t 12.5 t 11.8 t -6%Total waste production 23.7 t 23.7 t 18.6 t -22%Total waste produced per person

197.0 kg/FTE 213.0 kg/FTE 230.0 kg/FTE 8%

Total waste recycled per person

195.0 kg/FTE 207.0 kg/FTE 120.0 kg/FTE -42%

Proportion of waste diverted from landfill

49% 47% 42% -11%

Parks AustraliaSites and staffingThis Parks Australia report covers the activities of:

Kakadu National Park Uluru-Kata Tjuta National Park Christmas Island National Park Pulu Keeling National Park Booderee National Park Norfolk Island National Park and Botanic Garden Australian National Botanic Gardens.

The environmental performance for the Canberra-based staff is covered in the Canberra offices report, and the performance of Darwin-based staff is covered in the Darwin/Jabiru offices report.

In 2012–13 management plans were in place or in preparation for all sites to ensure environmental, economic and social objectives and considerations are outlined and integrated. Environmental monitoring and reporting regimes were also in place. A range of operational requirements contributed to the carbon footprint of each site, including electricity generation, transport, development of new infrastructure and waste management. Some properties have specialised needs; for example, the Australian National Botanic Gardens (ANBG) has to maintain climate-controlled conditions in its glasshouses. The remoteness of some parks limited opportunities to reduce environmental footprints. Park management activities such as revegetation projects and fire and pest control also had implications for carbon emissions.

Environmental management frameworkIn 2012–13 all Parks Australia parks and reserves had climate change strategies in place and continue to implement them.

Conserving biodiversity is a primary objective for all reserves, and careful management of the use of fire and vegetation can help to reduce greenhouse gas emissions. However, reliable indicators are not yet available to measure the contributions biodiversity management activities make to cutting emissions.

EnergyTotal energy consumption for the parks and reserves has slightly increased in 2012–13.

Kakadu and Uluru-Kata Tjuta national parks continue to rely primarily on diesel power generation as they are not on an electricity grid. However, at Uluru-Kata Tjuta, the Mutitjulu powerhouse has recently been upgraded to install a switchboard and datalogger system that enables the generators to switch automatically depending on the load required by the community. The switching will ensure the generators are running at their optimal capacity depending on load needs. Additionally the dataloggers enable the park to monitor production demands, fuel use and other systems that will enable the organisation to make more informed decisions relating to economical and efficient use of the generators.

The ANBG is constrained in reducing energy consumption due to its business requirements for maintaining constant plant and herbarium conditions. However, the ANBG continues to aim for a 10 per cent offset in its energy usage. In 2012–13 it purchased 1 126 330 kilowatt hours of GreenPower (approximately 10 per cent of purchased electricity).

Parks and reserves continue to implement and undertake a range of actions to improve energy use. While these actions may not result in a significant reduction in greenhouse gas emissions they do reflect the efforts being made to improve operations, including those in remote areas where there are limited opportunities for large-impact changes. Actions and improvements include:

Ongoing implementation of a capital works program at Booderee National Park to convert existing electric hot water storage systems in campgrounds to continuous flow gas hot water. A further section was converted in 2012–13, with one section remaining to be converted.

All amenity blocks at Booderee National Park are now fitted with the latest technology low-energy lighting. Some campground amenity blocks are closed during winter due to low visitation, significantly

reducing energy consumption. Dispersal of fertiliser for the Christmas Island forest rehabilitation program continues to be done by

hand instead of using the mechanical fertiliser, reducing diesel fuel use. A replacement survey boat with more fuel-efficient engines was purchased for Pulu Keeling National

Park.

Parks staff continue to make a conscious effort to minimise business-related travel, while recognising that face-to-face contact and visits to remote locations are sometimes necessary, particularly for the three parks that are managed jointly with their Indigenous owners. Parks Australia increasingly uses alternatives to air travel such as teleconferencing and videoconferencing.

WasteAccess to regional recycling facilities is gradually improving for more remote locations such as Kakadu and Uluru-Kata Tjuta national parks and external territories. Basic recycling facilities are available on Norfolk Island and office paper is being sourced from renewable sources when available. Kakadu National Park is participating in a regional recycling and resource recovery program, and will continue its recycling programs in and around offices for paper, glass and aluminium. Uluru-Kata Tjuta National Park is operating the Mutitjulu waste site facility in line with the Waste Management Guidelines for Small Communities in the Northern Territory—Working Towards Best Practice 2009 and has engaged the services of an appropriate provider to manage the facility. Recycling facilities continue to be available in all ANBG offices and on-site facilities, including composting of organic kitchen waste.

The ANBG is a rubbish bin free site for the public and they are encouraged to take home their waste for recycling. In 2012–13 approximately 114 cubic metres of plant material was recycled as mulch and used on site.

In 2012–13 Parks Australia purchased an average of 4.34 reams of paper per employee. This represented an increase in paper purchases from the previous year, and reflects the bulk purchasing patterns of remote parks.

WaterSince 2011 the ANBG has been extracting non-potable water from Lake Burley Griffin for irrigation requirements, saving up to 170 million litres of potable water from Canberra’s water supply. In addition, the gardens continue to use water-saving initiatives such as soil sensors, water-saving irrigation components and priority watering, recycling of water from catchment ponds, and use of mulch to reduce evaporation.

Uluru-Kata Tjuta National Park is developing a water management plan that will incorporate water-saving educational programs for the community. The park communicates directly with the community about reducing water use and actively seeks out businesses and residences that have not implemented water-saving techniques. Norfolk Island National Park uses only harvested rainwater. Parks and reserves continue to upgrade water infrastructure and reduce water use where possible.

Table 6: Summary of environmental indicators—Parks AustraliaINDICATOR 2010–11

RESULT2011–12 RESULT

2012–13 RESULT

% CHANGE

Staffing

Average staffing levels (full time equivalent)

226 215 225 5%

Office/Building Energy Use

Total office tenant light and power

295 085 MJ 225 061 MJ 232 945 MJ 4%

Tenant light and power per person

n/a n/a n/a n/a

Tenant light and power per square metre

297 MJ/m2 227 MJ/m2 258 MJ/m2 14%

Total base building energy use 518 997 MJ 450 626 MJ 453 107 MJ 1%

Base building energy use by area

485 MJ/m2 421 MJ/m2 410 MJ/m2 -3%

Building energy use (electricity and gas):

Public Buildings Laboratories Climate controlled

stores Other buildings Other uses

1 372 273 MJn/a

2 198 530 MJ

35 460 132 MJ191 051 MJ

1 168 824 MJn/a

2 763 436 MJ

32 671 686 MJ279 310 MJ

1 070 588 MJn/a

1 384 224 MJ

36 138 440 MJ496 964 MJ

-8%n/a

-50%

11%78%

GreenPower purchased as a proportion of total electricity purchased

6% 6% 6% -4.6%

Renewable energy generated Not recorded Not recorded 18 000 MJ n/a

Transport

Total number of fleet vehicles (ANBG only)

9 9 5 -44%

Total number of operational vehicles

112 127 227 79%

Average green vehicle guide (GVG) rating of fleet vehicles (score out of 20)

9.5 9.5 10.8 14%

Average fuel consumption of fleet vehicles

10.7 L/100km 15.1 L/100km 14.3 L/100km -6%

Fleet vehicle fuel consumption by type:

Unleaded Petrol E10 Petrol Diesel LPG

2459 Ln/a

6620 Ln/a

3246 Ln/a

9272 Ln/a

3171 Ln/a

9136 Ln/a

-2%n/a

-1%n/a

Total distance travelled by vehicle fleet

84 672 km 82 677 km 85 877km 4%

Greenhouse Gas Emissions

Greenhouse gas emissions (after offsets) attributed to office tenant light and power

69 t CO2-e 54 t CO2-e 55 t CO2-e 2%

Greenhouse gas emissions attributed to base building energy use

106 t CO2-e 98 t CO2-e 99 t CO2-e 1%

Greenhouse gas emissions (after offsets) attributed to energy used by:

Public Buildings Laboratories Climate controlled

stores Other buildings Other uses

297 t CO2-en/a

113 t CO2-e

3 343 t CO2-e22 t CO2-e

257 t CO2-en/a

142 t CO2-e

3 073 t CO2-e57 t CO2-e

234 t CO2-en/a

71 t CO2-e

3 221 t CO2-e94 t CO2-e

-9%n/a

-50%

5%65%

Greenhouse gas emissions attributed to fleet vehicles

23 t CO2-e 32 t CO2-e 32 CO2-e -1%

Greenhouse gas emissions attributed to operational vehicles

873 t CO2-e 818 t CO2-e 809 CO2-e -1%

Greenhouse gas emissions attributed to operational aircraft

25 t CO2-e 3 t CO2-e 1 t CO2-e -68%

use

Total greenhouse gas emissions after offsets (not including operational vehicles, commercial flights and waste)

3997 t CO2-e 3717 t CO2-e 3851 t CO2-e 4%

Total greenhouse gas emissions after offsets (not including operational vehicles, commercial flights and waste) per person

17.7 t CO2-e/FTE 17.3 t CO2-e/FTE 17.1 t CO2-e -1%

Water Consumption

Total metered potable office water use

200 926 kL 195 393 kL 228 716 kL 17%

Total metered potable office water use per person

888 kL/FTE 909 kL/FTE 1017 kL/FTE 12%

Total metered potable office water use by area

12.73 kL/ m2 12.38 kL/ m2 14.55 kL/m2 18%

Total harvested water use 29 903 kL 70 885 kL 93 135kL 31%

Total rainwater captured 254 504 kL 254 526 kL 254 515 kL 0%

Resource Efficiency and Waste

Internal copy paper per person 3.7 reams/FTE 3.7 reams/FTE 4.3 reams/FTE 17%

Percentage of paper purchased with post consumer recycled content

42% 29% 47% 62%

Office paper recycled 0.2 t 0.3 t 0.2 t -8%

Other waste sent to recycling facilities (excluding office paper):

Cardboard Co-mingled

office waste Organic waste

3.9 t15.8 t

31.5 t

3.8 t18.5 t

30.0 t

3.7 t20.5 t

52.5 t

-3%10%

75%

Waste sent to landfill Not recorded Not recorded Not recorded n/a

Total waste production Not recorded Not recorded Not recorded n/a

Total waste produced per person Not recorded Not recorded Not recorded n/a

Total waste recycled per person Not recorded Not recorded Not recorded n/a

Proportion of waste diverted from landfill

Not recorded Not recorded Not recorded n/a

Australian Antarctic Division Sites and staffingThe Australian Antarctic Division (AAD) reports on its environmental performance for the offices, laboratories and workshops at Kingston and the cargo facility at Hobart port, as well as environmental performance at subantarctic Macquarie Island station and three Antarctic stations—Davis, Mawson and Casey.

In 2012–13 the AAD had 301 full time equivalent (FTE) employees at Kingston and Hobart port as well as 25 FTE employees of the Marine Reserves Branch of Parks Australia at the Kingston site. This year 103 FTE expeditioners were employed and sent to one of three stations in Antarctica or to Macquarie Island station in the subantarctic to manage and support scientific research and operational programs. However, up to 300 other personnel go south each year (scientists, field workers and other summer personnel), increasing station numbers for periods ranging from hours to months. Therefore, instead of using expeditioner FTE in the following tables, a figure of 136 equivalent full time participants is used to account for those who participate in the Australian Antarctic program in calculating energy use, water use, paper use and

waste generation.

Environmental management frameworkThe AAD continues to act on its commitment to ecologically sustainable development principles as described in the AAD’s 2012–2015 Environmental Policy through its efforts to continually improve environmental performance across all its operations in Australia, the Southern Ocean and the Australian Antarctic Territory.

External certification of the AAD’s EMS to the international standard for Environmental Management Systems (ISO 14001:2004) is maintained through annual surveillance audits at Australian-based operations, and at least one station every three years. Australia continues to be the only Antarctic Treaty party to hold such certification for environmental management across all of its operations.

Energy Electricity use at the Kingston site is reported to the AAD by the energy provider as a total because individual buildings are not metered separately. Similarly, tenant light and power and base building energy use are also not metered separately and are estimated using known laboratory, workshop, warehouse and office areas. Electricity use is reported separately for the cargo facility at the port and, for the first time, for the small boat shed and training facility leased by the AAD at Kettering, south of Kingston.

Energy use at Kingston has increased slightly due to more people working on site, including seven Supply Services personnel who moved to Kingston in April when the lease expired on the sheds at the Hobart port. The decrease of 23 per cent in energy consumption at the port facility reflects this move. A new Cargo and Biosecurity Facility has been leased and personnel are expected to move back to Hobart port in August. Changes to the AAD’s expeditioner training program last year resulted in more use of the site for training programs on weekends, which has contributed to electricity consumption. One extra vehicle has been added to the AAD’s fleet at Kingston, resulting in commensurate increases in diesel use and distance travelled.

Greenhouse gas emissions at the Kingston site appear to have decreased by 30 per cent, but this reflects the change in the emissions factor for indirect emissions (scope 2) from purchased electricity from the grid in Tasmania, published in the Australian National Greenhouse Accounts Factors, July 2013.

In Antarctica, electricity use per person is affected by the weather and can fluctuate from year to year depending on temperatures and number of people on station at any one time. Wind turbines continue to make a significant renewable contribution to Mawson station’s electrical and heating energy requirements using cogeneration to capture waste heat from the station’s diesel-powered electrical generators. This heat is used to warm the station, along with boilers powered by the wind turbines and boosted by diesel-fired boilers. The 25 per cent increase in renewable energy contribution has reduced greenhouse gas emissions by 20 per cent and brings the renewable energy contribution back to normal levels after a less productive year in 2011–12 due to turbine breakdowns. For the last eight years, renewable energy has provided around 40 per cent of the energy needs of Mawson station. Further information and live data are on the AAD’s website at: www.antarctica.gov.au/living-and-working/stations/mawson.

Resource efficiency and wasteThe proportion of waste from the Kingston site that has been diverted from landfill has improved by 56 per cent. This is due to great efforts by the Property Services team to install new waste sorting bins and labelling in all of the tea rooms on site, resulting in a 27 per cent improvement in waste going into the co-mingled recycling stream over the last year and a 44 per cent reduction in waste going to landfill. Cleaning staff have noted a significant cultural change in AAD employees and their attention to sorting rubbish in tea rooms and reducing the number of bins in offices.

The amount of office paper recycled has decreased by three tonnes (34 per cent) due to last year’s figures being artificially inflated by a major cleanout of the warehouse facility. The AAD has just begun to monitor copy paper use in preparation for implementing a swipe-to-print facility across all of its printers.

The amount of waste returned to Australia from AAD stations appears to have been reduced by 20 per cent in 2012–13 as a result of improved packing, recycling and re-use practices and improvements in waste management labelling. Better storage and packing procedures have also led to improved manifesting of cargo and sorting for disposal on return to Australia, resulting in an 11 per cent improvement in recycling and re-use outcomes. The amount of waste sent to landfill decreased by 40 per cent, however, this could be due in part to less waste being returned to Australia overall; however, additional waste at Mawson was retrieved that was not collected last year due to weather and time constraints on shipping.

WaterPotable water consumption at the Kingston site has dropped by 22 per cent over last year. The washdown

facility for vehicles, plant and equipment at Kingston now uses rainwater instead of potable water. Two buildings at Kingston have refurbished toilet facilities with more efficient toilets and cisterns which save up to six litres of water per flush and sensor taps on sinks that save hand washing water.

Water production and consumption at the AAD’s Antarctic and Macquarie Island stations varies widely and is dependent upon the method of water production and storage employed at each station. Total water use has decreased 11 per cent over last year due to fewer people going south this year than last year.

Water at Davis Station is drawn from a tarn and then processed through a continuous micro-filtration system and a reverse osmosis desalination plant. The water produced is then pumped via a calcite filter to two 600 000 litre tanks for storage and then onto smaller tanks for consumption. Total water storage at Davis is 1 430 000 litres.

Water at both Mawson and Casey stations is produced primarily by melting snow and ice in a melt cavern using hot water pumped through a melt bell. The water is then pumped into storage tanks before passing through a gauze filter at Mawson and a calcite filter at Casey to the end user. During summer there is a limited amount of free water depending on ambient temperature, which controls the extent of the melt. Total water storage at Mawson and Casey stations is 270 000 litres each.

Macquarie Island sources its water as run off from the plateau, which is collected in a small dam and piped to two storage tanks before passing through gauze, sand and UV filters to the end user. The total water storage capacity at Macquarie Island is 104 000 litres.

Because fresh water is a precious commodity that has to be produced by the variety of methods outlined above, including the use of fuel to melt ice, station personnel are asked to conserve water and water-saving appliances are installed wherever possible on stations.

Table 7: Summary of environmental indicators—AAD Kingston OfficesINDICATOR 2010–11 RESULT 2011–12 RESULT 2012–13 RESULT % CHANGE

Staffing

Average staffing levels (full time equivalent)

314 316 319 1%

Office/building energy use

Total office tenant light and power

3 220 182 MJ 3 299 270 MJ 3 383 182 MJ 3%

Tenant light and power per person

10 255 MJ/FTE 10 441 MJ/FTE 10 606 MJ/FTE 2%

Tenant light and power per square metre

372 MJ/m2 381 MJ/m2 390 MJ/m2 2%

Total base building energy use 3 220 182 MJ 3 299 270 MJ 3 383 182 MJ 3%

Base building energy use by area

372 MJ/m2 381 MJ/m2 390 MJ/m2 2%

Building energy use (electricity and gas):

Laboratories Public Buildings Accommodation Other including

warehouse, workshops, outbuildings

Cargo facility at Hobart Port

WTF facility at Kettering

1 001 837 MJn/an/a

6 869 725 MJ

581 580 MJ

Not reported

1 026 439 MJn/an/a

7 038 446 MJ

683 784 MJ

Not reported

1 052 546 MJn/an/a

7 217 455 MJ

524 664 MJ

17 536 MJ

3%n/an/a3%

-23%

n/a

Green Power purchased as a proportion of total electricity purchased

0% 0% 0% 0%

Renewable energy generated 0 MJ 0 MJ 0 MJ 0%

Transport Total number of fleet vehicles 7 7 8 14%

Average green vehicle guide (GVG) rating of fleet vehicles (score out of 20)

12.6 12.6 12.1 -4%

Average fuel consumption of fleet vehicles

9.5 L/100km 10.8 L/100km 9.9 L/100km -8%

Fleet vehicle fuel consumption by type:

Unleaded Petrol E10 Petrol Diesel LPG

4648 L0 L

2665 L0 L

5480 L0 L

2308 L 0 L

5043 L 0 L

3155 L 0 L

-8%0%

37%0%

Total distance travelled by vehicle fleet

76 861 km 72 042 km 83 040 km 15%

Greenhouse Gas Emissions

Greenhouse gas emissions attributed to office tenant light and power

286 t CO2-e 293 t CO2-e 207 t CO2-e -30%

Greenhouse gas emissions attributed to base building energy use

286 t CO2-e 293 t CO2-e 207 t CO2-e -30%

Greenhouse gas emissions attributed to energy used by:

Laboratories Public buildings Accommodation Other (workshops,

warehouse, outbuildings)

Cargo facility WTF facility at

Kettering

89 t CO2-en/an/a

611 t CO2-e

52 t CO2-eNot reported

91 t CO2-en/an/a

626 t CO2-e

61 t CO2-eNot reported

64 t CO2-e n/a n/a

441 t CO2-e

32 t CO2-e1 t CO2-e

-30%n/an/a

-30%

-47%n/a

Greenhouse gas emissions attributed to fleet vehicles

19 t CO2-e 20 t CO2-e 22 t CO2-e 7%

Total greenhouse gas emissions (not including commercial flights and waste)

1 343 t CO2-e 1 384 t CO2-e 974 t CO2-e -30%

Total greenhouse gas emissions (not including commercial flights and waste) per person

4.2 t CO2-e/FTE 4.3 t CO2-e/FTE 3.0 t CO2-e/FTE -30%

Water Consumption

Total metered potable office water use

3 153 kL 3 376 kL 2 637 kL -22%

Total metered potable office water use per person

10.9 kL/FTE 11.3 kL/FTE 8.3 kL/FTE -27%

Total metered potable office water use by area

0.36 kL/m2 0.39 kL/m2 0.30 kL/m2 -22%

Resource Efficiency and Waste

Internal copy paper per person 7.27 reams/FTE 6.54 reams/FTE 6.04 reams/FTE -8%

Percentage of paper purchased with post consumer recycled content

100% 100% 100% 0%

Office paper recycled 4.3 t 10.7 t 7.1 t -34%

Other waste sent to recycling facilities (excluding office paper):

Co-mingled office waste

Organic waste

50.3 t

0 t

66.4 t

0 t

84.5 t

0 t

27%

0%

Waste sent to landfill 173.8 t 207.6 t 116.5 t -44%

Total waste production 228.4 t 284.7 t 201.0 t -29%

Total waste produced per person 541.4 kg/FTE 642.7 kg/FTE 357.4 kg/FTE -44%

Total waste recycled per person 170.1 kg/FTE 238.7 kg/FTE 259.2 kg/FTE 9%

Proportion of waste diverted from landfill

24% 27% 42% 56%

Table 8: Environmental indicators—Antarctic and Macquarie Island operations (four stations)INDICATOR 2010–11

RESULT2011–12 RESULT

2012–13 RESULT

% CHANGE

Energy Use Electricity generated by diesel

19 272 359 MJ 20 057 130 MJ 19 449 320 MJ -3%

Renewable energy generated 5 828 450 MJ 4 666 522 MJ 5 839 789 MJ 25%

Electricity use per person (expeditioners, round trippers, voyage management staff, crew etc.)

158 365 MJ/FTE 169 340 MJ/FTE 185 949 MJ/FTE 10%

Operational diesel fuel used (electricity generation, vehicles, plant, incinerators, boilers), Special Antarctic Blend

2 118 466 L 2 119 474 L 2 116 540 L 0%

Total number of operational vehicles

Not recorded 178 185 4%

Marine diesel oil used for shipping

3 946 272 L 3 661 719 L 3 747 230 L 2%

Aircraft fuel used (Aviation Turbine Kerosene)

613 544 L 630 980 L 667 716 L 6%

Greenhouse Gas Emissions

Greenhouse gas emissions attributed to diesel fuel (electricity generation, vehicles, plant, etc.)

5683 t CO2-e 5686 t CO2-e 5678 t CO2-e 0%

Greenhouse gas emissions attributed to shipping

11 455 t CO2-e 10 629 t CO2-e 10 877 t CO2-e 2%

Greenhouse gas emissions attributed to aircraft

1691 t CO2-e 1739 t CO2-e 1841 t CO2-e 6%

Total greenhouse gas emissions for Antarctic operations

18 829 t CO2-e 18 054 t CO2-e 18 396 t CO2-e 2%

Total greenhouse gas emissions for Antarctic operations per person

119 t CO2-e 124 t CO2-e 135 t CO2-e 9%

Greenhouse gas emissions saved through renewable energy generation

405 t CO2-e 324 t CO2-e 406 t CO2-e 25%

Water Consumption Total water use 6705 kL 7011 kL 6258 kL -11%

Total water use per person 42.30 kL/FTE 48.02 kL/FTE 46.00 kL/FTE -4%

Waste Returned to Australia (RTA)

Liquid waste treated and disposed

22.4 t 47.1 t 35.8 t -24%

Waste sent to recycling facilities 25.8 t 76.8 t 84.9 t 11%

Waste sent to landfill 120.5 t 113.2 t 68.0 t -40%

Total waste production 203.1 t 237.3 t 188.7 t -20%

Total waste produced per person 1281 kg/FTE 1625 kg/FTE 1124 kg/FTE -31%

Proportion of waste diverted from landfill—large amount of recycling from Mawson

33% 40% 36% 39%

AAD Greenhouse Gas EmissionsTotal greenhouse gas emissions (not including commercial flights and waste)—Kingston offices, labs, workshops, warehouse, outbuildings and cargo facility

1343 t CO2-e 1384 t CO2-e 974 t CO2-e -30%

Total greenhouse gas emissions for Antarctic operations.

18 829 t CO2-e 18 054 t CO2-e 18 396 t CO2-e 2%

Total AAD greenhouse gas emissions

20 172 t CO2-e 19 438 t CO2-e 19 370 t CO2-e 0%

Notes: Total greenhouse gas emissions are net emissions associated with fuel use in the department’s leased vehicle fleet and

electricity use in offices and includes all offsets and GreenPower purchased. Greenhouse gas emissions (excluding those from commercial flights) were estimated using methodology and emission

factors sourced from the July 2013 version of the National Greenhouse Accounts Factors workbook published by the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.

Methodology and emission factors for commercial flights were sourced from Worksheet 3—Calculating GHG Emissions from Flights published by EPA Victoria. An updated Radiative Forcing Index (RFI) of 1.9 was used and was sourced from the 2011 Guidelines to DEFRA/DECC’s GHG Conversion Factors for Company Reporting published by the UK Department of Energy and Climate Change (DECC) and Department of Environment, Food and Rural Affairs (DEFRA).

Corrections have been made to earlier estimates of greenhouse gas emissions attributed to base building energy use, which has flowed on to corrections for total greenhouse gas emissions and greenhouse gas emissions per person as well.

FTE = full-time equivalent staff.

Human rightsThe department operates within the context of Australia being a signatory to the seven key human rights treaties, with human rights being protected and promoted through a range of domestic legislation, policies and practices and independent bodies. In line with Australia’s Human Rights Framework, the department promotes a human rights culture. This involves an expectation that departmental staff treat all people with respect and consideration, and avoid making assumptions based on personal characteristics or behaviour. It also involves ensuring that the department is a safe and respectful workplace that reflects the diversity of the people it serves. This commitment is consistent with our obligations under the APS Values and Code of Conduct, as contained in the Public Service Act 1999.

Staff have access to a range of resources, including the publication In Our Hands: A Guide to Human Rights for Australian Public Servants provided by the Attorney-General’s Department to assist staff to understand human rights obligations and take them into account in their daily work. For more information and to access the

publication, visit the Attorney-General’s Department website at: www.ag.gov.au.

Human resourcesThe department aims to attract, develop, engage and retain quality people to ensure corporate goals are achieved and changing business needs are met.

Results for 2012–13 A new workforce plan was developed. The Strategic Workforce Plan 2013–2016 identifies challenges

the department’s workforce will face over the next four years and proposes a suite of strategies to address them.

The department contributed to the development of the whole-of-government Agency Multicultural Plan, which reflects a set of firm commitments and implementation obligations for Australian Government agencies to Australia’s culturally and linguistically diverse population.

The department conducted a national conference for Indigenous staff in late April/early May 2013. A new Diversity Strategy 2013–2017 was developed and is published on the department’s website at:

www.environment.gov.au. Work commenced on the development of a health and safety management system for the department,

reflecting its commitment to providing a safe and healthy workplace for all of its workers in accordance with its obligations under the Work, Health and Safety Act 2011 (WHS Act).

A new leadership and management course was developed and trialled for Australian Public Service Level 6 (APS6) to Executive Level 2 (EL2) staff.

A new capability framework was developed and implemented, linking to the enhanced performance management system.

Workforce profile The department has a diverse workforce with some 2724 people located in all states and territories, Australia’s external territories and Antarctica. Of these, 1907 employees, (70 per cent), were located in Canberra and 817 (30 per cent) outside of Canberra.

Approximately half (50.6 per cent) of employees were employed at the Executive Level 1 and Australian Public Service (APS) Level 6 classifications. Further information about the department’s workforce is provided at Appendix 1: Workforce profile.

Performance management The department strives for continuous improvement to its operations by:

encouraging leadership capabilities and behaviours and eliciting the best from staff developing strong relationships with stakeholders strengthening business systems and governance practices.

The department’s Core Capability Framework outlines the core skills and capabilities that are critical to the success of the department. It defines the core capabilities required of all staff and is a core component of the performance scheme.

A manager-one-removed upward feedback process was implemented during the year to encourage employees to provide constructive feedback on managers’ and teams’ performance. This process was designed to be similar to a 360 degree process whereby a more complete, accurate and fair appraisal of performance is provided. The department also updated the performance templates and rating descriptors to enable managers and employees to focus on good performance and to simplify procedures.

During 2012–13 the department continued to provide training through structured courses and one-on-one training assistance to managers. This helped managers identify performance issues and address them in a timely manner. Training and information sessions were also provided to divisions on the Performance Development Scheme framework, including the operation of the manager-one-removed process.

Completion rates and performance ratings of performance agreements continue to be provided to the Workforce Management Committee to highlight any trends.

Workforce planningThe retention rate for ongoing employees in 2012–13 was 87.5 per cent, compared to 89 per cent in 2011–12. The overall separation rate (excluding casuals, machinery of government changes and temporary transfer ends) was 26.1 per cent, an increase from 25.5 per cent in 2011–12. This figure includes the department’s non-ongoing employees, primarily employed to meet seasonal operational demands in the Australian Antarctic Division and some national parks and separations initiated by the department (dismissals and voluntary redundancies). Excluding these employees, the employee initiated separation rate for ongoing employees was 7.7 per cent, a decrease from 10.7 per cent in 2011–12.

During 2012–13 a comprehensive environmental scan was conducted that explored the department’s operating environment and identified challenges for the workforce over the next four years. The Environmental Scan 2012 did not identify any major or systemic workforce issues and the challenges and strategies outlined in the subsequent DSEWPaC Strategic Workforce Plan 2013–2016 (approved and endorsed by the Executive Board in March 2013) sought primarily to maintain aspects of the workforce that are performing well while building capacity in areas where there is the ability for the department to improve or excel.

The Strategic Workforce Plan 2013–2016 is supported by a schedule that breaks down the challenges and strategies identified in the plan into required actions. Progress against these actions will be monitored during the coming year and reported to the senior executive. Workforce planning is also being embedded in divisional action planning which encourages divisions to focus on challenges specific to the division.

Enterprise agreementThe department’s Enterprise Agreement 2011–2014 complies with the APS bargaining framework and aims to increase the department’s efficiency and effectiveness, improve the department’s policy and program outcomes, and enhance the quality of employees’ working lives.

The current enterprise agreement includes the provision of individual flexibility arrangements. These can be offered in recognition of particular skills, capabilities or additional responsibilities or to help meet special workplace circumstances and/or operational requirements. There were 57 individual flexibility arrangements in place at 30 June 2013.

Learning and developmentDeveloping people and demonstrating a commitment to a culture of learning remained central to attracting and retaining high-quality staff in 2012–13. The department provided opportunities for staff to access wide-ranging learning and development activities, both in house and externally. In addition, approximately 141 staff members received support to undertake tertiary study.

It has also remained a priority, particularly at the divisional level, to give employees development opportunities to continually strengthen the skills and knowledge needed to conduct the department’s business and achieve results. This includes specialist skill development, offered in a number of divisions to meet technical requirements. The ongoing use of a learning and development plan within performance agreements has played an important role in this regard.

Three courses were run under the Excellence in Leadership and Management Program (ELM), attended by 74 employees. This program developed participants’ strategic leadership and people management capabilities. Other offerings under the ELM program included insight seminars where senior executives shared their experiences of past departmental challenges and key learnings from those experiences. Harvard ManageMentor® licences were purchased for 500 senior executive and executive level staff. This program is an e-learning tool for performance support and self-development and a teaching resource to conduct leader-led activities.

Using other internal and external development programs, staff also undertook training in various aspects of public policy and administration, such as legislation and decision making in the APS. A new online program was rolled out to provide training aspects in cultural competency. Existing e-learning modules in selection advisory committee accreditation, orientation and security training were also updated.

In addition the department delivers significant learning and development activities as part of specialist recruitment programs such as the graduate program and some entry-level apprenticeships.

Code of conduct and ethical standardsThe department remains firmly committed to the APS Values and Code of Conduct and recognises the

importance of promoting a positive workplace culture and environment. It demonstrates this commitment by encouraging its workforce to articulate and model appropriate behaviours and by appropriately and decisively addressing incidents of workplace misconduct.

The department promotes its Conduct and Ethical Behaviour Framework Policies and Guidelines, which positively assists all employees and managers with their responsibilities and obligations in the context of the APS Values and ethical workplace behaviour standards and expectations.

The People Strategies Branch within the Corporate Strategies Division provides education, guidance and advice to staff on all aspects of the APS Values and Code of Conduct as well as fraud awareness initiatives. The branch also delivers specialised internal investigation services and takes appropriate action when allegations are received about suspected misconduct, internal fraud or other criminal behaviour by departmental staff.

Remuneration for senior executive service officersThe remuneration for senior executive service officers in the department reflects the work value and complexity of the roles; individual capabilities, contribution and performance; and other relevant market considerations.

In determining the parameters for remuneration, ranges are set for each classification following consideration of annual benchmarking data such as the APS Remuneration Survey, the Australian Government Employment Bargaining Framework, general economic conditions and portfolio and departmental performance.

Performance payThe department no longer offers performance bonuses to staff. Performance pay arrangements have not been made since 2009–10.

Disability reporting mechanismsSince 1994 Commonwealth departments and agencies have reported on their performance as policy advisers, purchasers, employers, regulators and providers under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at: www.apsc.gov.au. From 2010–11 departments and agencies are no longer required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by a new National Disability Strategy 2010–2020 which sets out a ten year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports will be available in 2014, and will be available at: www.dss.gov.au. The Social Inclusion Measurement and Reporting Strategy agreed by the government in December 2009 will also include some reporting on disability matters in its regular How Australia is Faring Report and, if appropriate, in strategic change indicators in agency annual reports. More detail on social inclusion matters can be found at: www.pandora.nla.gov.au.

DiversityThe department upholds the APS Values and Code of Conduct in promoting a positive culture where diversity is recognised, encouraged and celebrated through a number of employment strategies and programs, including the department’s Diversity Plan 2009–12. A new Diversity Strategy 2013–2017 has been developed.

The department’s diverse workforce includes Aboriginal and Torres Strait Islander people, people with disability and people from a non-English speaking background (NESB).

Table 9: Diversity groupsDIVERSITY GROUP PROPORTION OF

ONGOING STAFF (%)DEPARTMENT’S SUPPORTING STRATEGY

Aboriginal or Torres Strait Islander

3.3 Indigenous Employment and Capability Strategy 2012–2014

People with disability 2.3 Disability Action Plan 2012–14

NESB 7.0 Diversity Strategy 2013–17

Note: This data is for ongoing staff as at 31 December 2012. The data has been sourced from the Australian Public Service Employment Database, which is managed by the Australian Public Service Commission. It is important to note that it is voluntary for staff to identify as belonging to a diversity group.

As part of the Indigenous Employment and Capability Strategy 2012–14 the department held its second annual workshop for the executives of the Indigenous staff networks in Canberra and the annual national Indigenous staff conference in late April/early May. The department supports three networks for employees based in Canberra, in Kakadu and in Booderee.

Training activities included one cultural awareness seminar in June and the purchase of 40 Indigenous cultural competency licences to trial delivery of online training.

In 2012 four Indigenous participants completed the department’s graduate program; one Indigenous graduate was recruited to the 2013 graduate program. In 2012 four Indigenous cadets were employed by the department, two of whom were continuing cadets from 2011.

The 2013 Kevin McLeod Award was awarded to Bernie McLeod for an exchange to Kakadu National Park and to three school-based apprentices at Booderee National Park. The award honours the memory of Kevin McLeod, a long-term departmental staff member. It encourages staff to undertake projects with a strong emphasis on learning, which reflects Kevin’s passion for looking after country and people and for living reconciliation.

The department’s RAP for 2013–15 (its second) was launched on 28 February 2013. It consolidates and advances the department’s efforts to achieve mutual respect, build stronger relationships and provide opportunities with and for Aboriginal and Torres Strait Islander people.

The department’s RAP and Closing the Gap champion is Deputy Secretary Kimberley Dripps, who reports to the Executive Board on the work of the RAP Steering Committee.

Programs offered to staff in 2012–13 included:

five seminars on exploring the value of diversity to raise the awareness of staff about the importance of diversity

celebrations on key national days/weeks, including the International Day of People with Disability, International Women’s Day, Harmony Day, National Reconciliation Week and NAIDOC Week.

Programs for employees with disabilities are listed below:

The disability sponsor, Deputy Secretary David Parker, continued his role of promoting and supporting the inclusion of people with disability and listening to the views and concerns of people with disability. His role also ensures that the goals of the Disability Action Plan are progressed and that disability issues remain on the radar of the department’s senior executives and Executive Board.

The disability coordinator continued their role in the department. This is an executive level employee whose role includes providing a central point of coordination for people with disability and other colleagues to assist with individual and systemic issues.

The department continued support for the employee-run network for users of Dragon Naturally Speaking assistive technology to help identify and address systemic issues.

The department promoted support services available to employees with disability and their managers and colleagues on its intranet. In addition, the department developed and promoted a process for developing personal emergency evacuation plans for people who need assistance in an emergency evacuation, which is tested during mock building evacuations.

The department applied the principles of reasonable adjustment within the workplace to support improved work participation by employees with disabilities. In addition, consultation commenced on articulating these principles in a Reasonable Adjustment Policy.

The department sought to build and maintain strong relationships with the full range of stakeholders by providing good-quality information about activities and services that are accessible to all Australians. For example, it:

provided accessibility and safety information about public areas of Commonwealth parks and reserves

for the benefit of people with physical disability advertised complaint mechanisms on the department’s website for access-related complaints (no

complaints were received) maintained its membership of the Australian Network on Disability and participated in disability forums.

Stakeholder relationsPublic affairsThe Public Affairs section supports the department to deliver policies and programs by providing strategic communications advice to business teams and the minister and parliamentary secretary. Effective communications is essential to the successful delivery of the government’s policies and programs.

All communications activities—including media and issues management, advertising, media monitoring, publication development, multimedia, market research, and social media—are managed through the Public Affairs section.

The department is committed to exploring innovative channels to communicate with its stakeholders. The portfolio websites continue to be a primary source of information and traditional media is complemented with the use of social media such as Twitter, YouTube and Facebook.

The department continues to consider environmentally sustainable approaches in the development of all communication products. All printed products, such as booklets, banners, and fact sheets, are produced using paper that complies with international environmental standards. Further information on advertising and marketing expenditure is at Appendix 4.

Online informationThe department’s websites are the primary communication tool for its national and global audiences, providing continuous access to services and information.

The department continues to improve access to online information. For example, in August 2012 a major project commenced to build and migrate the majority of its online content into a new content management system (CMS). The CMS will enable the department to more effectively manage its websites, ensuring that it is easier for stakeholders to search for and locate information.

Ministerial and parliamentary servicesThe Parliamentary Services section manages parliamentary business for the portfolio including the coordination of ministerial correspondence, ministerial briefings, questions on notice and Senate estimates.

The section records, performs quality assurance checks on, and tracks documents flowing between the department and the offices of the minister and parliamentary secretary. The section also provides advice to portfolio line areas on ministerial and parliamentary matters.

In 2012–13 the department prepared 1549 briefing submissions for the minister and the parliamentary secretary.

There were 47 116 items of correspondence received by the minister and the parliamentary secretary and registered on the department’s database. The following table outlines statistics on ministerial correspondence over the past five years.

Table 10: Number of ministerial correspondence items over the past five yearsYEAR NUMBER OF CORRESPONDENCE ITEMS2008–09 19 472

2009–10 26 254

2010–11 11 459

2011–12 15 243

2012–13 47 116

Note:

The minister received large levels of correspondence in 2012–13 regarding a container deposit scheme, the Tarkine region of Tasmania and the proposed Carmichael coal mine in Queensland. Correspondence on these issues largely contributed to the significant increase in correspondence for 2012–13 comparative to previous years.

Community informationThe department maintained an in-house Community Information Unit that receives requests for information and feedback on the department’s services. The unit also manages the department’s web-based education centre, the distribution of departmental publications and the publications shopfront.

In 2012–13 the Community Information Unit responded to 16 783 enquiries from the Australian community; 43.4 per cent about grant and funding programs and 56.6 per cent seeking general information about the department and its programs. The unit managed the distribution of 20 770 publications, and 3216 people visited the publications shopfront.

Service charterThe department’s Service Charter 2011–14 sets out the standards of service clients can expect and how to give feedback on performance. The charter is available at: www.environment.gov.au/about/publications/charter.html or in hard copy by contacting the Community Information Unit toll free on 1800 803 772.

The client service officer can be contacted at:

Client Service Officer Department of the Environment GPO Box 787 Canberra ACT 2601Phone: 02 6274 2123Toll free: 1800 803 772Fax: 02 6274 1970Email: client.service@environment.gov.au

Inquiries and complaintsThe department’s client service officer received 12 enquiries in 2012–13. Of these, four were not related to the department and eight were complaints related to the department’s policies and programs. Requests for information and assistance were forwarded to the appropriate work area for action.

Feedback on performance of service deliveryThe department did not receive any feedback about its service delivery standards through the client service officer in 2012–13.

Support for environment, heritage and sustainability organisationsRegister of environmental organisations The Register of Environmental Organisations is a Commonwealth tax deductibility scheme for environmental organisations enabled under the Income Tax Assessment Act 1997. It allows eligible organisations to be endorsed as deductible gift recipients by the Australian Taxation Office.

In order for an organisation to be entered onto the register they must have a principal purpose of either:

the protection and enhancement of the natural environment or of a significant aspect of the natural environment, or

the provision of information or education, or the carrying on of research, about the natural environment or a significant aspect of the natural environment.

During 2012–13 the minister and the assistant treasurer approved the entry of 17 organisations and their public funds onto the register. At 30 June 2013 the register contained over 560 environmental organisations.

During 2011–12 approximately $130 million in donations (the latest information available) were made to deductible gift recipient environmental organisations to assist the protection and enhancement of the natural environment.

International policy advice

In addition to involvement in issue-specific international forums, the department participated in a number of multilateral and regional meetings in 2012–13.

United Nations Environment Programme The mandate of the United Nations Environment Programme (UNEP) was reinvigorated after the United Nations Conference on Sustainable Development (Rio+20). It is now working to be more widely recognised as the authoritative advocate for the global environment and as setting the global environmental agenda and promoting coherent implementation of the environmental dimension of sustainable development within the United Nations system. The department led Australia’s delegation to the first universal session of UNEP’s Governing Council (since renamed the United Nations Environment Assembly of UNEP) in Nairobi, Kenya, in February 2013. Both the meeting and the associated ministerial-level consultations agreed to implement key recommendations from Rio+20. Further information on the meeting is at: www.unep.org/GC/GC27/Docs/Proceedings/K1350945.pdf.

Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) was established in April 2012 as a global assessment mechanism designed to bring together, synthesise and analyse biodiversity information for decision making. The department led Australia’s delegation to the first plenary meeting of the platform in Bonn, Germany from 21 to 26 January 2013. Key decisions included election of officers of the bureau and members of the interim Multidisciplinary Expert Panel and agreement on an ambitious intersessional agenda to progress development of the initial work program. A report of the meeting is available at: www.ipbes.net.

East Asia Summit—environment stream The East Asia Summit (EAS) was established in 2005 as a forum of national leaders for strategic dialogue and action on key challenges facing the region. The department leads Australia’s engagement in the environment stream of the EAS. It represented Australia at the EAS senior officials’ meeting in Siem Reap, Cambodia, in August 2012 and at the third EAS environment ministers’ meeting in Bangkok, Thailand in September 2012. Australian initiatives on environmentally sustainable cities and climate change adaptation attracted significant support.

East Asia Summit—High-level Seminar on Environmentally Sustainable Cities The department co-organised (with the governments of Japan, Indonesia, Vietnam and the Republic of Korea) the fourth East Asia Summit High-level Seminar on Environmentally Sustainable Cities from 21 to 22 March 2013 in Hanoi, Vietnam. Over 200 stakeholders from government, international organisations, non-government organisations, educational institutions and consultants attended to discuss current issues and explore opportunities for collaborative actions. The seminar focused on solid waste management, urban water and sanitation and adaptation and resilience to climate change. A summary of the meeting is available at: www.hls-esc.org.

Free trade agreementsThe department works in the bilateral and multilateral trade and environment arena through its input into negotiations of Australia’s free trade agreements. In particular, the department has been involved in negotiations related to the Trans-Pacific Partnership (TPP). The TPP is the government’s highest regional trade negotiation priority. Its parties include Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States of America and Vietnam. While the Department of Foreign Affairs and Trade has the lead on trade agreements, the department provides advice and input on those issues related to its portfolio interests.

Convention on Biological DiversityAustralia participated in the 11th Conference of Parties (COP11) to the Convention on Biological Diversity in Hyderabad, India from 8 to 19 October 2012. The key outcome was a series of commitments to help support states deliver their commitments under the Strategic Plan for Biodiversity 2011 to 2020 and its Aichi targets. Among other things, parties committed by 2015 to: doubling financial flows to developing countries from a variety of sources (not just overseas development aid); including biodiversity in their national priorities or development plans; reporting on domestic biodiversity funding and gaps; and establishing national financial plans for biodiversity.

Annual bilateral discussions on environment with New ZealandThe annual discussions were held in Sydney from 23 to 24 October 2012. The department and the New Zealand Ministry for Environment continue to work closely to progress shared priorities. The next meeting will take place in New Zealand in November 2013.

International Whaling Commission Australia participated in the 64th annual meeting of the International Whaling Commission in Panama in July 2012. Overall, the meeting was successful in advancing Australia’s commission-endorsed conservation and governance reform objectives. The outcomes will result in a greater focus on cetacean (whale, dolphin and porpoise) conservation and improve the transparency and accountability of the commission in line with best practice approaches in other intergovernmental organisations.

Pacific Regional Environment Program The department led Australia’s delegation to the 23rd annual South Pacific Regional Environment Programme meeting in Noumea, New Caledonia in September 2012. The meeting noted many major commitments to better protect and manage the Pacific Ocean, adopted a series of Marine Species Action Plans and, in recognising the increasing problems of waste and pollution, endorsed the Pacific Regional E-waste strategy and action plan.

Convention on International Trade in Endangered Species of Wild Fauna and Flora The department led Australia’s delegation to the 16th meeting of the Conference of the Parties (CoP16) to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in Bangkok, Thailand from 3 to 14 March 2013. Key outcomes included the adoption of several significant decisions to improve the regulation of trade in marine species, including the Appendix II listing of five shark and two manta ray species; 83 amendments to Appendices I and II, including the delisting of eight endemic Australian species (seven extinct species and one invalid taxon) and the transfer of the freshwater sawfish from Appendix II to Appendix I; 11 changes to species annotations; and unprecedented support for addressing illegal wildlife trade. Further information on the meeting is available at: www.cites.org/eng/cop/index.php.

The department also represented the Oceania region at the 62nd, 63rd and 64th meetings of the CITES Standing Committee (Geneva, Switzerland, 23 to 27 July 2012; and Bangkok, Thailand, 2 and 14 March 2013). Key outcomes of the meetings included the adoption of actions to address the escalating illegal trade in elephant ivory and rhinoceros horn. Further information on the meetings is available at: www.cites.org/eng/com/sc/index.php.

ProcurementPurchasingThe department’s procurement guidelines are set out in the Chief Executive Instructions. They comply with the Commonwealth Procurement Rules, which are underpinned by the core principle of value for money. The department advertises tender opportunities through the AusTender website. The department’s Annual Procurement Plan for 2012–13 was published in June 2012 on AusTender and updated throughout the year. The Annual Procurement Plan for 2013–14 was published on AusTender in June 2013.

ReportingThe department met the requirement to report on the AusTender website all contracts entered into in 2012–13 with a value of $10 000 or more. The department met the requirement to report on the Senate Order on Departmental and Agency Contracts.

Consultancy servicesDuring 2012–13, 99 new consultancy contracts were entered into involving total actual expenditure of $7.82 million. In addition, 36 ongoing consultancy contracts were active during the 2012–13 year, involving total actual expenditure of $3.06 million. Information on contracts and consultancies is available through the AusTender website.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website at: www.tenders.gov.au.

The department engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or problem; carry out defined reviews or evaluations; or provide independent advice, information or creative solutions to assist in the department’s decision making.

Prior to engaging consultants, the department takes into account the skills and resources required for the task, the skills available internally, and the cost-effectiveness of engaging

external expertise. The decision to engage a consultant is made in accordance with the Financial Management and Accountability Act 1997 and related regulations including the Commonwealth Procurement Rules and relevant internal policies.

Exempt contractsDuring 2012–13 there were no standing offers or contracts in excess of $10 000 (inclusive of GST) exempted by the chief executive from being published on AusTender under the Freedom of Information Act 1982.

Australian National Audit Office access clausesDuring 2012–13 there were no standing offers or contracts in excess of $100 000 (inclusive of GST) that did not provide for the Auditor-General to have access to the contractor’s premises.

Economic indicatorsThe following tables summarise economic indicators for the department. The first relates to departmental funds and the other relates to administered funds.

Table 11: Departmental fundsINDICATOR 2012–13 2011–12 CHANGE (%)1

$000 $000Operating statement

Total expenses1 589 636 686 320 (14%)

Total own-source income1 110 781 91 273 21%

Net cost of service 478 855 595 047 (20%)

Economic viability

Total assets2 498 403 510 359 (2%)

Total liabilities2 529 894 552 465 (4%)

Notes:1. Refer to the Financial performance of departmental activities for further information on the variation.2. The department ended the year with total liabilities exceeding total assets. This does not make the department insolvent and has no bearing on whether the department’s debts will be paid, as the department is part of the legal entity that is the Australian Government, which is ultimately responsible for all the department’s debts. Further detail is provided in the department’s 2012–13 financial statements at Note 1.22.

Table 12: Administered fundsINDICATOR 2012–13 2011–12 CHANGE (%)3, 4

$000 $000Operating statement

Total expenses 968 199 888 298 9%

Total own-source income3 161 766 78 293 107%

Net cost of service 806 433 810 005 (0.4%)

Economic viability

Total assets 2 993 130 3 044 922 (2%)

Total liabilities4 30 224 42 049 (28%)

Notes:3. Refer to the Financial performance of administered activities for further information on the variation.4. Refer to the Administered financial position for further information on the variation.

Financial performanceThis section highlights the department’s financial performance during 2012–13 for both departmental and administered activities.

Financial performance of departmental activitiesThe department’s departmental financial performance for 2012–13 is summarised in the table below. Departmental resourcing includes assets, liabilities, revenues and expenses that the department controls directly and uses to produce outcomes on behalf of the Government.

Table 13: Departmental financial performanceDEPARTMENTAL 2012–13

ACTUALS2011–12 ACTUALS

VARIANCE

$000 $000 $000Outcome 1 Income 151 326 140 433 10 893

Expenses 151 845 143 791 8054

Surplus/(deficit) (519) (3358) 2839

Outcome 2 Income 53 939 49 893 4046

Expenses 56 383 51 149 5234

Surplus/(deficit) (2444) (1256) (1188)

Outcome 3 Income 147 291 132 182 15 109

Expenses 185 027 246 005 (60 978)

Surplus/(deficit) (37 736) (113 823) 76 087

Outcome 4 Income 84 766 114 684 (29 918)

Expenses 81 142 115 335 (34 193)

Surplus/(deficit) 3624 (651) 4275

Outcome 5 Income 95 439 100 708 (5269)

Expenses 102 583 108 919 (6336)

Surplus/(deficit) (7144) (8211) 1067

Outcome 6 Income 12 925 19 624 (6699)

Expenses 12 656 21 121 (8465)

Surplus/(deficit) 269 (1497) 1766

Total departmental Income 545 686 557 524 (11 838)

Expenses 589 636 686 320 (96 684)

Surplus/(deficit) (43 950) (128 796) 84 846

Notes:2012–13 Actuals Actual income and expenses for 2012–132011–12 Actuals Actual income and expenses for 2011–12Variance The difference between the actual results for 2012–13 and 2011–12(i.e. 2012–13 Actuals minus 2011–12 Actuals)

Table 14: Comparison of departmental financial performance with previous yearOUTCOME EXPENSESOutcome 1 Income increased in 2012–13 by $10.89 million

mainly due to:

An increase of $38.49 million in funding to support the Sustainable Management of Natural Resources and the Environment program.

A decrease of $27.06 million in funding for the Environmental Information and Research program.

A decrease of $2.11 million in funding for the Carbon Pollution Reduction – Land Sector Initiatives program.

Expenses increased in 2012–13 by $8.05 million mainly due to:

An increase of $2.53 million for payments relating to the department’s voluntary redundancy program.

An increase of $2.39 million for the whale and marine mammal research program being conducted in liaison with the Australian Antarctic Division.

An increase of $1.52 million in depreciation and amortisation charges.

Outcome 2 Income increased in 2012–13 by $4.05 million mainly due to:

An increase of $2.48 million for the Equivalent Carbon Price Program and the Ozone Depleting Substances and Synthetic Greenhouse Gas Destruction Program.

An increase in funding of $1.59 million to support the Sustainable Communities program.

An increase of $5.16 million in relation to the operation of the Ozone Protection and Synthetic Greenhouse Gas Special Account.

A $4.31 million reduction in income following the transfer of the Housing Supply and Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011.

Expenses increased by $5.23 million in 2012–13 mainly due to:

A $5.16 million increase in employee expenses relating to the Sustainability Communities Program, the Equivalent Carbon Price Program and the Ozone Depleting Substances and Synthetic Greenhouse Gas Destruction Program.

An increase of $4.42 million in support of the national air pollutant emission reduction strategies.

A $4.3 million reduction in expenses following the transfer of the Housing Supply and Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011.

Outcome 3 Income increased in 2012–13 by $15.11 million mainly due to:

A $6.29 million increase in revenue from air charter services provided by the Australian Antarctic Division.

$5.15 million contract settlement. A $1.25 million increase in revenue for

scientific activities conducted by the AAD on behalf of and in conjunction with other organisations.

A $3.27 million gain resulting from the decrease in the Antarctic restitution obligation provisions, following the increase in the 10 year Australian Government bond rate, which is used to discount the provision for accounting purposes.

Expenses decreased in 2012–13 by $60.98 million mainly due to:

The net decrease in expenses relating to the Antarctic restitution obligations. The expense fell by $54.58 million, reflecting the changes to the 10 year Australian Government bond rate, which is used to discount the provision for accounting purposes.

A $14.35 million decrease in costs associated with the early termination of a contract in the 2011–12 financial year.

A $6.33 million increase in operational costs associated with an increase in air charter services provided.

A $3.65 million increase in costs to extend the life of the aging resupply ship, the Aurora Australis.

Outcome 4 Income decreased in 2012–13 by $29.92 million mainly due to:

The reclassification of the Commonwealth’s contribution of $18.74 million to the Murray–Darling Basin Authority, as administered funding.

Expenses decreased in 2012–13 by $34.19 million mainly due to:

The reclassification of the Commonwealth’s contribution of $18.74 million to the Murray–Darling

A decrease of $7.83 million in funding for the Office of Water Science.

A decrease of $2.65 million in funding for the Water Reform program.

Basin Authority, as administered funding. A $10.73 million decrease in costs

associated with the Office of Water Science. The 2011–12 result included the costs of establishing the Office.

A $5.95 million decrease in operational costs due to savings measures.

Outcome 5 Income decreased in 2012–13 by $5.27 million due to:

A decrease of $3.56 million in funding for the Environment Protection and Heritage Conservation programs.

A decrease of $1.83 million in revenue relating primarily to work on the Kokoda Initiative.

Expenses decreased in 2012–13 by $6.34 million mainly due to reduced funding and cost saving activities for the Environment Protection and Heritage Conservation programs.

Outcome 6 Income decreased in 2012–13 by $6.70 million mainly due to decreased funding for the Commonwealth Environmental Water Office.

Expenses decreased in 2012–13 by $8.47 million primarily as a result of the decreased funding for the Commonwealth Environmental Water Office and other cost saving activities.

Financial performance of administered activitiesThe financial performance of the department’s administered activities for 2012–13 is summarised in the table below. Administered items are assets, liabilities, revenues and expenses that are controlled by the Government but managed or overseen by the department on behalf of the Government.

Table 15: Administered financial performance ADMINISTERED 2012–13

ACTUALS2011–12 ACTUALS

VARIANCE

$000 $000 $000Outcome 1 Income 1041 877 164

Expenses 306 971 316 024 (9 053)

Surplus/(deficit) (305 930) (315 147) 9 217

Outcome 2 Income 110 537 12 062 98 475

Expenses 25 011 89 692 (64 681)

Surplus/(deficit) 85 526 (77 630) 163 156

Outcome 3 Income 0 0 0

Expenses 12 12 0

Surplus/(deficit) (12) (12)

Outcome 4 Income 49 888 64 794 (14 906)

Expenses 608 639 460 945 147 694

Surplus/(deficit) (558 751) (396 151) (162 600)

Outcome 5 Income 300 560 (260)

Expenses 12 140 12 612 (472)

Surplus/(deficit) (11 840) (12 052) 212

Outcome 6 Income 0 0 0

Expenses 15 426 9013 6413

Surplus/(deficit) (15 426) (9013) (6413)

Total administered Income 161 766 78 293 83 473

Expenses 968 199 888 298 79 901

Surplus/(deficit) (806 433) (810 005) 3 572

Notes:2012–13 Actuals Actual income and expenses for 2012–132011–12 Actuals Actual income and expenses for 2011–12VarianceThe difference between the actual results for 2012–13 and 2011–12(i.e. 2012–13 Actuals minus 2011–12 Actuals)

Table 16: Comparison of administered financial performance with previous yearOUTCOME INCOME EXPENSESOutcome 1 The small increase in income of

$0.17 million in 2012–13 related mainly to the Caring for our Country initiative.

The decrease by $9.05 million in expenses in 2012–13 was the net result of the movement in several grant programs including:

A decrease of $23.19 million under the Caring for our Country Programs.

A decrease of $10.74 million under the Biodiversity Fund.

A decrease of $2.62 million under the Environmental Stewardship Program.

An increase of $18.16 million under the Tasmanian Forests Intergovernmental Agreement.

An increase of $2.13 million for the Community Infrastructure Grants – Cumberland Plains program.

An increase of $1.28 million for the Indigenous Carbon Farming Fund.

An increase of $1.51 million for the National Wildlife Corridor Plan.

An increase of $3.74 million for the Regional Natural Resources Management Planning for Climate Change initiative.

Outcome 2 The increase by $98.48 million in income in 2012–13 was primarily the result of the imposition of Carbon Charges prescribed by the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislation which commenced on 1 July 2012.

The decrease of $64.68 million in expenses in 2012–13 was primarily the result of:

A decrease of $79.24 million relating to the Housing Affordability Fund following the transfer of the function to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) on the restructure of administrative arrangements on 14 December 2011.

An increase of $5.59 million in expenditure from the Ozone Protection and Synthetic Greenhouse Gas special account.

An increase of $8.74 million for the Suburban Jobs Program to support local jobs.

Outcome 3 Not applicable. This item represents depreciation of the Antarctic Heritage Collection.

Outcome 4 The decrease by $14.91 million in income in 2012–13 was primarily the result of:

An increase of $19.54 million relating to water entitlements received under the Sustainable Rural Water Use and Infrastructure Program.

A decrease of $23.62 million relating to the change in the Commonwealth Government’s interest in the River Murray Operations Joint Venture.

A decrease of $5.31 million for the Water Smart Australia initiative.

A decrease of $4.21 million for the Living Murray Initiative.

A decrease of $1.61 million for the Water Efficiency and Labelling Standards Account.

The increase by $147.69 million in expenses in 2012–13 was primarily the result of:

An increase of $225.43 million for the Restoring the Balance in the Basin initiative.

The Commonwealth’s contribution of $19.32 million to the Murray–Darling Basin Authority which was previously classified as departmental funding.

A decrease of $34.35 million for the National Water Security Plan – Cities and Towns initiative.

A decrease of $12.71 million for the Sustainable Rural Water Use and Infrastructure Program.

A decrease of $24.62 million for the National Urban Water and Desalination Plan.

A decrease of $16.19 million for the Water Smart Australia initiative.

The cessation of funding for the Murray Environmental Flows initiative resulting in a decrease of $7.50 million and the Green Precincts initiative resulting in a decrease of $2.43 million.

Outcome 5 There was a small net decrease of $0.26 million in income in 2012–13, following small declines in fees relating to the Indigenous Heritage program $0.22 million and the National Historic Sites Program $0.11 million, partially offset by an increase in Environmental Regulation fees and penalties of $0.11 million.

The decrease in expenses of $0.472 million in 2012–13 was primarily the result of :

A decrease in expenditure of $1.7 million under National Historic Sites Program.

An increase of $0.86 million in Community Heritage Grants.

Increased expenditure of $0.36 million under the Sustainable Australia Regional Development initiative.

Outcome 6 There was no revenue recorded against Outcome 6 in 2012–13.

The increase of $6.41 million in 2012–13 represents the increase in expenditure from the Commonwealth Environmental Water Holder special account, used to manage the Commonwealth’s environmental water holdings.

Financial positionTable 17: Departments’ financial position

2012–13 2011–12 VARIANCE

$000 $000 $000Total assets 498 403 510 359 (11 956)

Total liabilities 529 894 552 465 (22 571)

Total equity (31 491) (42 106) 10 615

Total assetsDuring 2012–13 the total asset base controlled by the department, decreased by $12.0 million to $498.4 million. The decrease is mainly attributable to depreciation on buildings, property, plant and equipment.

Total liabilitiesTotal liabilities managed by the department decreased by $22.6 million during 2012–13 to $529.9 million as at 30 June 2013. This is mainly due to the change in the long term discount rates used to calculate the department’s provisions.

Total equityThe department ended the year with total liabilities exceeding total assets, primarily as a result of changes in provisions. This is reflected in the shortfall in total equity of $31.5 million. This does not make the department insolvent and has no bearing on whether the department’s debts will be paid, as the department is part of the legal entity that is the Australian Government, which is ultimately responsible for all the department’s debts. Further detail is provided in the department’s 2012–13 financial statements at Note 1.22.

Asset managementThe department’s assets are located throughout Australia, with the majority located in the Australian Antarctic Territory and managed by the Australian Antarctic Division. The Australian Antarctic Division manages and maintains Australia’s Antarctic stations, Casey, Davis and Mawson and a research station on sub-Antarctic Macquarie Island. The Australian Antarctic Division has in place an asset management plan for each station.

Table 18: Administered schedule of assets and liabilities2012–13 2011–12 VARIANCE

$000 $000 $000Total assets 2 993 130 3 044 922 (51 792)

Total liabilities 30 224 42 049 (11 825)

Total assetsThe assets administered on behalf of the Australian Government consist primarily of water entitlements held to achieve the government’s environmental policy objectives, the Australian Government’s interest in the net assets of the Director of National Parks (DNP) and the Sydney Harbour Federation Trust (SHFT) and the Australian Government’s share of the jointly controlled assets held in the River Murray Operations (RMO) and Living Murray Initiative (LMI) joint ventures.

In addition to the purchase of water entitlements by the department on behalf of the Australian Government, water entitlements have been acquired under the Federal Financial Relations (FFR) Framework, in accordance with the terms and conditions of payments made by the Treasury for the National Partnership on Water for the Future. Water entitlements have also been acquired as a result of water savings from projects funded to improve the efficiency of water use, under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP).

During 2012–13 the total asset base administered by the department, decreased by $51.8 million to $2,993.1 million. The value of water entitlements was impaired by $343.3 million, reflecting the lower market prices since the time of acquisition, as evidenced by state government water trading registers. Water entitlements of $269.0 million were acquired during the year. Taxation receivable increased by $22.8 million following the imposition of Carbon Charges prescribed by the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislation. Remaining variations relate to movements in the recorded values of DNP, SHFT and RMO and in operational trade and other receivables.

Total liabilitiesTotal liabilities administered by the department, consisting of suppliers and grants payable, decreased by $11.8 million during 2012–13, to $30.2 million as at 30 June 2013, consistent with the status of grant activity.

Asset managementThe department’s water holdings are recorded on the respective state government water trading registers and being classified as indefinite life intangible assets, are subject to annual impairment testing in accordance with Australian Accounting Standards Board (AASB) 138 Intangible Assets.

Spatial reportingTable 19 provides a summary of expenditure by program disaggregated between regional Australia, non-regional and non-specific location for the 2012–13 annual actual expenses for the Sustainability, Environment, Water, Population and Communities portfolio.

Table 19: 2012–13 Expenditure disaggregated for Sustainability, Environment, Water, Population and Communities PortfolioPROGRAM CATEGORY BUDGET ACTUAL  

Estimate1 Expenses1

2012–13 2012–13 Variation

$m $m $m

    (a) (b) (a-b)

Department of Sustainability, Environment, Water, Population and Communities

Program 1.1 – Sustainable Management of Natural Resources and the Environment2

Regional 215 175 403

Non-regional - 78 (78)3

Non-specific 39 - 393

Program 1.3 – Carbon Pollution Reduction - Land Sector Initiatives4

Regional 34 17 175

Non-regional - 8 (8)5

Non-specific - - -

Program 4.1 – Water Reform6 Regional 520 403 1177

Non-regional 63 101 (38)7

Non-specific 36 - 367

Other programs Regional 37 32 5

Non-regional 35 48 (13)

Non-specific 20 20

Total – Department of Sustainability, Environment, Water, Population and Communities

Regional 806 627 179

Non-regional 98 235 (137)

Non-specific 95 - 95

Total – Sustainability, Environment, Water, Population and Communities Portfolio

Regional 806 627 179

Non-regional 98 235 (137)

Non-specific 95 - 95

1. Budget Estimates used for spatial reporting were derived from the 2012–13 Portfolio Budget Statements for the Sustainability, Environment, Water, Population and Communications Portfolio. Actual expenses for 2012–13 have been geospatially categorised and disclosed appropriately. Actual expenditure is subject to a competitive selection process. In addition, actual payments may be made to an administrative site before being distributed more widely around Australia. The classification between regional and non-regional locations, therefore result in offsetting variations between budget and actual expenditure.2. This includes Caring for our Country, Working on Country and the Environmental Stewardship Program.3. Refer to footnote 1 as above. The overall net effect of the variation is immaterial.4. This does not include the Department of Agriculture, Fisheries and Forestry’s Landcare component of the Caring for our Country program.5. Refer to footnote 1 as above. The overall net effect of the variation is not material.6. The Water Reform include the expenditure for water entitlement purchases.7. Refer to footnote 1 as above. The variation is primarily due to the capitalisation of water entitlements acquired under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP). As part of the SRWUIP funding arrangement, the Australian Government acquires a share of the water saving in the form of a water entitlement, for use in delivering the government’s environmental watering objectives. The value of these water entitlements are offset against the SRWUIP grant expenses.

LEGISLATION REPORTING

ContentsAll outcomes

Environment Protection and Biodiversity Conservation Act 1999

Outcome 1: Biodiversity and ecosystems

Natural Heritage Trust of Australia Act 1997

Outcome 2: Sustainable population and communities

Product Stewardship Act 2011

Product Stewardship (Oil) Act 2000

Fuel Quality Standards Act 2000 272

Hazardous Waste (Regulation of Exports and Imports) Act 1989

Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

Outcome 4: Sustainable water

Water Efficiency Labelling and Standards Act 2005

Outcome 4: Sustainable water and Outcome 6: Commonwealth environmental water

Water Act 2007

Operation of the Environment Protection and Biodiversity Conservation Act 1999

This annual report has been prepared in accordance with section 516 of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act). It reports on the operation of the EPBC Act from 1 July 2012 to 30 June 2013 against the main objectives of the Act, which are to:

provide a clear role for the Australian Government in the protection of the environment, especially on matters of national environmental significance; to enhance the protection of important species and ecosystems, natural and cultural values and places; and to conserve biodiversity (section 1.1)

control the international movement of wildlife trade and ensure the sustainable management of wildlife industries (section 1.2)

protect and manage marine and terrestrial areas (section 1.3) work towards promoting ecologically sustainable development through increased intergovernmental

cooperation and reduced duplication in environmental impact assessment through strategic approaches (section 2.1)

provide an efficient and effective assessment and approval process (section 2.2) implement a comprehensive monitoring, audit, compliance and enforcement regime for all decisions

taken (section 2.3). As required, this annual report includes statistics on the operation of the EPBC Act, particularly compliance with statutory timeframes. This information, the membership of advisory committees and a list of EPBC Act publications produced in 2012–13 are contained in the appendices to this report. The report also provides an overview of regulatory reform activities relating to the future operation of the EPBC Act, including the proposed changes to the Act and its operational framework that were under development in 2012–13 (section 3).

The department’s activities relating to the operation of the EPBC Act are integral to achieving portfolio outcomes in a broad range of areas. These include the conservation and protection of biodiversity and ecosystems in terrestrial and marine areas and the conservation and preservation of Australia’s natural and human heritage. Consequently, some of these activities are also reported elsewhere in the department’s annual report.

ContentsOverview 2121. Protecting the environment 214

1.1 Protecting matters of national environmental significance 214World and National Heritage 216

Wetlands of international importance 217

Threatened species, ecological communities and migratory species 217

1.2 Wildlife trade and management 224Live imports 224

Sustainable wildlife industries 224

Wildlife trade permits 225

Fisheries assessments and approvals 225

1.3 Protected areas 226 Commonwealth reserves 226

2. Promoting ecologically sustainable development 2302.1 Strategic approaches 230Strategic assessments 230

Marine bioregional planning 231

Assessment bilateral agreements 232

2.2 Environmental impact assessment 232Referrals 233

Assessments and approvals 234

2.3 Compliance and enforcement 236Working with others 237

Compliance audit plan 237

Breaches and investigations 238

Legal actions 240

3. EPBC Act regulatory reform 243Legislation amendments 244

Appendices Appendix A—Statistics 245

Appendix B—Committees 256

Appendix C—Publications 258

Appendix D—Key threatening processes and threat abatement plans 259

Overview The EPBC Act is the Australian Government’s central environmental law. It provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places that are defined in the EPBC Act as ‘matters of national environmental significance’ (MNES).

The nine MNES to which the EPBC Act applies are:

World Heritage sites National Heritage places wetlands of international importance, or Ramsar wetlands nationally threatened species and ecological communities migratory species Commonwealth marine areas the Great Barrier Reef Marine Park nuclear actions a water resource, in relation to coal seam gas and large coal mining development.*

* This matter was added under the Environment Protection and Biodiversity Conservation Amendment Act 2013, which received royal assent on 21 June 2013.

In addition, the EPBC Act regulates actions that have a significant impact on the environment where the actions affect, or are taken on, Commonwealth land or are carried out by a Commonwealth agency (even if that significant impact does not directly relate to one of the nine MNES).

A major Australian Government priority is to ensure that Australian environmental regulation, including the EPBC Act, continues to effectively address the challenges involved in combining sustainable economic development with effective environmental protection. This priority was reflected in many aspects of the department’s work relating to the EPBC Act in 2012–13.

In August 2011 the government released its response to the Independent Review of the EPBC Act. The department continues to implement the national environmental reform agenda. Refer to section 3, EPBC regulatory reform, in this report.

The government response to the Hawke Review of the EPBC Act was built around four key themes:

a shift from individual project approvals to strategic approaches including new regional environment plans

streamlined assessment and approval processes better identification of national environmental assets cooperative national standards and guidelines to harmonise approaches between jurisdictions and

foster cooperation with all stakeholders.

An important part of the EPBC Act’s framework is the identification and listing of threatened species and ecological communities and key threatening processes. The Threatened Species Scientific Committee (TSSC) advises the Minister for Sustainability, Environment, Water, Population and Communities on nominations for these listings. In 2012–13 the minister made listing decisions for 78 species and six ecological communities. These decisions resulted in new listings for 13 species and six ecological communities, including the first ever marine ecological community. Two species were downlisted to a lower category of threat, 12 were uplisted to a higher category of threat and 49 species were delisted. In addition, two species were deemed ineligible for listing. At 30 June 2013, 1756 species, 62 ecological communities and 20 key threatening processes were listed under the EPBC Act. During 2012–13, 494 recovery plans were in place, including 26 plans that were made or adopted in that period. At 30 June 2013, 122 recovery plans were in preparation.

To clarify the requirements and process for nomination of Ramsar wetlands, Australian Ramsar site nomination guidelines were produced. At 30 June 2013 Australia had 65 Ramsar wetlands covering around 8.1 million hectares.

World and National HeritageInternational interest in Australia’s environment was highlighted by a joint monitoring mission by the World

Heritage Centre and the International Union for the Conservation of Nature (IUCN) to the Great Barrier Reef World Heritage Area in March 2012. The department is responding to the World Heritage Committee on the state of conservation of the Great Barrier Reef World Heritage Area.

The World Heritage Committee has recommended several actions for the Great Barrier Reef at its 36th and 37th sessions, including ensuring that the legislation protecting the property remains strong and adequate to maintain and enhance the Outstanding Universal Value of the Great Barrier Reef. Australia is requested to submit a State Party Report by 1 February 2014, which will be examined by the World Heritage Committee at its 38th Session in 2014. Other key developments relating to the protection of World Heritage sites during 2012–13 included:

The addition of 170 000 hectares and a minor boundary modification to the Tasmanian Wilderness World Heritage Area, known as Melaleuca–Cox Bight, now part of Southwest National Park. The Australian Government provided financial assistance for preparation of a management statement for the area and Melaleuca site and rehabilitation plan (including for its former mining sites) and some urgent remedial works.

The work towards a World Heritage nomination for appropriate areas of Cape York, subject to Traditional Owner consent. Community consultation was undertaken ahead of the preparation of a nomination document for submission to the World Heritage Centre.

The continued monitoring of rats and mice on Macquarie Island following the implementation of the Macquarie Island Pest Eradication Project through support from Caring for our Country. After careful planning, baiting for these three pest species began in winter 2010. Ongoing monitoring has confirmed no sighting of rats and mice since the last bait drop in July 2011. On 18 June 2013 the World Heritage Committee expressed its satisfaction with the results of the program.

The provision of $20 million for the protection and promotion of the Royal Exhibition Building and Carlton Gardens in Melbourne.

A joint commission (with the New South Wales Department of Planning and Infrastructure and Parramatta City Council) for a study to identify, document and describe views and settings that are important to the World and National Heritage listed values of Old Government House and Domain, titled Development in Parramatta City and the Impact on Old Government House and Domain’s World and National Heritage Listed Values: Technical Report.

The department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act in 2012–13. The department received 439 new referrals in 2012–13, and 118 referrals were determined to be controlled actions requiring further assessment and approval under the EPBC Act. A total of 193 referrals were determined not to be controlled actions and 96 referrals were determined not to be controlled actions subject to their being undertaken in a particular manner. Twenty nine per cent of proposals referred under the EPBC Act in 2012–13 were determined to require environmental impact assessment, compared with thirty five per cent in 2011–12.

In 2012–13, 81 proposals were approved under the EPBC Act, an increase on the 75 proposals approved in 2011–12. In 2012–13, 86 per cent of all statutory decisions under the EPBC Act were made within the statutory timeframes, the same percentage (86) for 2011–12 and slightly lower than the 90 per cent in 2010–11. In addition, the assessment framework strategic assessments under the EPBC Act provide a tool for reducing regulatory burden by considering Commonwealth and state or territory environmental planning issues in a single assessment process—refer to section 2.1.

Marine bioregional plans are used by the department in assessments under the EPBC Act (primarily relating to offshore proposals) to provide regional context—refer to section 2.1.

The department takes a strategic and active approach to ensuring compliance with the EPBC Act. The department’s monitoring and audit activities are undertaken under a Compliance Audit Plan, which involves both a Random Program and a Strategic Audit Program (based on higher environmental risk). The department also works closely with other Commonwealth, state and territory regulatory and enforcement agencies in investigating and prosecuting potential breaches of the EPBC Act.

The EPBC Act contains a range of enforcement mechanisms for managing suspected or identified instances of non-compliance and for reviewing the compliance of referred projects. These mechanisms include environmental audits, civil or criminal penalties for contraventions of the EPBC Act and remediation orders and determinations to repair or mitigate environmental damage. Section 2.3 details examples of the department’s use of enforcement and compliance mechanisms.

Further information on the department’s compliance and enforcement activities under the EPBC Act is in

section 1.3 in relation to Commonwealth marine areas and in section 2.3 in relation to all other activities.

1. Protecting the environment1.1 Protecting matters of national ecological significanceThis section reports on the operation of the EPBC Act in protecting matters of national environmental significance (MNES). It also reports on the work of statutory committees and the Australian Heritage Council, which advises on EPBC Act matters.

Three statutory committees currently operate under the EPBC Act: the Threatened Species Scientific Committee (TSSC); the Indigenous Advisory Committee (IAC); and the Independent Expert Scientific Committee (IESC). The work of the TSSC is reported under relevant sections of this report.

The IAC has a broad role in advising the Minister for Sustainability, Environment, Water, Population and Communities on the wider operation of the EPBC Act, taking into account Indigenous peoples’ knowledge of land management and the conservation and sustainable use of biodiversity.

The IAC held two meetings in 2012–13. The IAC advised the department and the minister on issues such as Indigenous engagement in the rollout of the Environmental Offsets Policy, broader environmental regulatory reforms, Indigenous sea country management, Indigenous management of dugongs (Dugong dugon) and sea turtles (Chelonioidea), Indigenous engagement with Commonwealth marine reserves and Indigenous consultation on the World Heritage listing for the Cape York Peninsula. The IAC and TSSC also agreed on protocols to assist the two committees to work together on strategic issues of common interest.

The Australian Heritage Council, which is established under the Australian Heritage Council Act 2003, is the Australian Government’s principal advisory body on heritage matters. The council is responsible under the EPBC Act for assessing the heritage values of places nominated for possible inclusion in the National Heritage List and Commonwealth Heritage List and for advising the Minister for Sustainability, Environment, Water, Population and Communities on heritage issues.

The Australian Heritage Council met six times in 2012–13, two of which were teleconferences. Council members Dr Elizabeth Mattiske, Rodney Dillon and Howard Tanner‘s terms expired during this year. Kate Clark was appointed as an historic heritage expert, Dr Jennie Whinam was appointed as a natural heritage expert, and Dr John Ah Kit was appointed as an Indigenous expert. Professor Carmen Lawrence’s term as chair of the council expired in May 2013 and she was reappointed for a second term.

The council has taken an active role in National Heritage assessments this year, and has also reviewed the thematic representation of places on the National Heritage List with a view to improving the comprehensiveness of representation on the list.

The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) was amended in late 2012 to establish the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development (the Statutory Committee).

The Statutory Committee provides scientific advice on the potential impacts of coal seam gas and large coal mining development proposals on water resources, as requested by government regulators.

During 2012–13, the Statutory Committee met seven times and received 23 referrals for advice. Of these, 20 were referred by the Australian Government; one was referred jointly by the Australian and Queensland governments and two by the Queensland government.

The Statutory Committee also provides advice to the Australian Government on bioregional assessments and research projects that will improve the knowledge base regarding the potential water related impacts of coal seam gas and large coal mining.

The Statutory Committee provided advice on the Bioregional Assessment Methodology, which will ensure a scientifically robust and transparent process is undertaken, providing consistency across bioregional assessments while enabling appropriate customisation to represent the differing subregions’ circumstances.

Progress was made on the 31 agreed research and knowledge projects undertaken on the advice of the Interim Independent Expert Scientific Committee.

For further information on the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development, please see Outcome 4: Sustainable Water.

World and National HeritageThe Australian Government provides protection under the EPBC Act for World Heritage and National Heritage listed places and for listing and protecting Commonwealth owned or controlled heritage places. Under the EPBC Act, the Minister for Sustainability, Environment, Water, Population and Communities approval must be obtained before any action can commence that may have a significant impact on the heritage values of a listed place.

World Heritage ListAustralia has 19 places on the World Heritage List, which are protected under the EPBC Act and have associated management requirements. Some properties have multiple sites.

Under the EPBC Act, the Minister for Sustainability, Environment, Water, Population and Communities must make a written plan for managing a property lying entirely within one or more Commonwealth areas. Where a property is in a state or self-governing territory, the Commonwealth must use its best endeavours to ensure that a plan is prepared and implemented cooperatively with the relevant state or territory. The plan must be consistent with Australia’s obligations under the World Heritage Convention and the Australian World Heritage management principles for managing a World Heritage property.

All Australian properties on the World Heritage List have management plans. The 2002 management strategy for the Riversleigh component of the Australian Fossil Mammal Sites is currently being updated along with others.

The World Heritage Committee has continued its focus on the state of conservation of the Great Barrier Reef World Heritage Area in 2012–13. Following the report of the joint World Heritage Centre – International Union for Conservation of Nature monitoring mission and the World Heritage Committee’s 2012 decision, the Australian Government has undertaken a range of work to better define, protect and communicate the outstanding universal value of the Great Barrier Reef, including through research on the aesthetic and geological values of the property and the development of guidance on outstanding universal value for proponents of actions under the EPBC Act.

National Heritage ListIn 2012–13 the Minister for Sustainability, Environment, Water, Population and Communities added the Western Tasmania Aboriginal Cultural Landscape to the National Heritage List, bringing the total number of places in the list to 98. Also, Indigenous heritage values were added to the Wet Tropics of National Heritage Place.

Commonwealth Heritage ListIn 2012–13, 15 post offices were added to the Commonwealth Heritage List and two post offices had additional values added to their inclusion in the list. At 30 June 2013 there were 396 places in the Commonwealth Heritage List.

Wetlands of international importanceThe Ramsar Convention encourages the designation of sites containing representative, rare or unique wetlands or wetlands that are important for conserving biological diversity. Contracting parties must advise the Ramsar Secretariat if the ecological character of a Ramsar-listed wetland has changed as a result of human influences. The ecological character of a Ramsar wetland is a matter of national environmental significance protected under the EPBC Act.

At 30 June 2013 Australia had 65 Ramsar wetlands covering around 8.1 million hectares. The most recent addition was Piccaninnie Ponds Karst Wetlands in South Australia, which was listed in December 2012.The department is working with state and territory governments to finalise ecological character descriptions for Australia’s Ramsar sites according to the National Framework and Guidance for Describing the Ecological Character of Australia’s Ramsar Wetlands. Ecological character descriptions will help support the operation of the EPBC Act by:

providing the baseline description of the ecological character of Ramsar wetlands making it easier to assess the likely impacts of proposed actions on the ecological character of Ramsar

wetlands guiding the development of management plans.

Threatened species, ecological communities and migratory species The EPBC Act protects Australia’s native species and ecological communities by providing for:

the identification and listing of threatened species and ecological communities the development of conservation advice and recovery plans for listed species and ecological

communities the recognition of key threatening processes and, where appropriate, reduction of the impacts of these

processes through threat abatement plans the issuing of permits for certain actions involving protected species.

Threatened fauna and flora may be listed in categories defined by the EPBC Act. Species listed as extinct in the wild, critically endangered, endangered, or vulnerable are matters of national environmental significance.

Ecological communities are unique and naturally occurring groups of plants, animals and other organisms that interact in a unique habitat. Their structure, composition and distribution are determined by factors such as soil type, position in the landscape, climate, and water availability. Threatened ecological communities listed as critically endangered and endangered are matters of national environmental significance. Threatened ecological communities may also be listed as vulnerable.

Listed threatened species and ecological communitiesThe Threatened Species Scientific Committee (TSSC) advised the Minister for Sustainability, Environment, Water, Population and Communities on amending and updating lists of threatened species, threatened ecological communities and key threatening processes. The TSSC also advised on the development or adoption of recovery and threat abatement plans.

The TSSC had three major meetings in 2012–13 and undertook a number of assessments of the conservation status of priority species, ecological communities and key threatening processes.

Assessment period commencing 1 October 2012New nominations were received for 18 species, three key threatening processes and five ecological communities. Several nominations from previous years were also eligible for reconsideration for inclusion on the assessment list. In June 2012 the TSSC assessed the public nominations received and determined its proposed priority assessment list for consideration by the Minister for Sustainability, Environment, Water, Population and Communities. The finalised priority assessment list was published in September 2012.

Listing assessment outcomesIn 2012–13 the Minister for Sustainability, Environment, Water, Population and Communities made listing decisions on the assessments for 78 species and six ecological communities. Seven species were from the Finalised Priority Assessment Lists and 71 were committee nominations which were assessed under arrangements to align state, territory and national lists. For species, as set out in Table 1, there were 13 new listings, 49 delistings and 14 transfers. In addition, two species were deemed ineligible for listing. Of the 14 transfers between categories, 12 species were uplisted and two species were downlisted.

Table 1: Species listing assessment outcomes 2012–13 SPECIES STATUSListings

Idiosoma nigrum

Pomaderris pilifera subsp. talpicutica

Listed as vulnerable

Grevillea corrugata Listed as endangered

Brachychiton sp. Ormeau (L.H.Bird 435851)

Caladenia lodgeana

Listed as critically endangered

Corybas sulcatus

Galium antarcticum

Leioproctus douglasiellus

Lysiosepalum abollatum

Muelleranthus crenulatus

Tetratheca nephelioides

Transferred species: uplistings

Banksia anatona

Banksia aurantia

Brachionichthys hirsutus

Pezoporus wallicus flaviventris

Pseudophryne corroboree

Transferred from endangered to critically endangered

Banksia serratuloides subsp. Perissa

Pseudophryne pengilleyi

Thymichthys politus

Transferred from vulnerable to critically endangered

Dichanthium queenslandicum

Eucalyptus alligatrix subsp. limaensis

Homoranthus decumbens

Rostratula australis

Transferred from vulnerable to endangered

Transferred species: downlistings

Eucalyptus beardiana

Hypocalymma longifolium

Transferred from endangered to vulnerable

Ineligible for listing

Cheilinus undulatus

Sargassum amaliae

Listed as conservation dependent

Centrophorus harrissoni

Centrophorus zeehaani

Delistings

Acacia guymeriAcacia ramifloraAcacia solenotaAcacia wardelliiBrachychiton vitifoliusCalamus warburgiiCentotheca philippinensisCommersonia argenteaCroton magneticusDelma labialisDendrobium superbiensDioclea hexandraDrosera fimbriataEremophila tetrapteraEucalyptus cerasiformisEucalyptus olivacea Brooker & Hopper ms.Grastidium tozerenseGrevillea venustaHemigenia viscidHodgkinsonia frutescensHuperzia phlegmarioidesJedda multicaulisLasjia claudiensisLaxmannia jamesiiLeucopogon cuspidatusMacrozamia crassifoliaMacrozamia fearnsideiMarsdenia coronataMesua sp. Boonjee (A.K. Irvine 1218)Meziella trifidaParadelma orientalisPhilotheca acrolophaPomatocalpa marsupialeSminthopsis griseoventer boullangerensisSowerbaea subtilisSpathoglottis plicataStawellia dimorphanthaStemona angustaStylidium merralliiSympterichthys sp.Trichoglottis australiensisTrigonostemon inopinatusTylophora williamsiiWodyetia bifurcataXanthostemon youngii

Deleting from vulnerable

Orthrosanthus muelleri

Synemon gratiosa

Deleting from endangered

Hydatella leptogyne Deleting from critically endangered

Calothamnus accedens Extinct from critically endangered

The Australian Government has partnership agreements with the states and territories to share information and align threatened species lists. Through these agreements, species that are endemic to a particular state or territory are first assessed in the relevant jurisdiction before national assessment by the Threatened Species Scientific Committee for their eligibility for listing under the EPBC Act. Listing advice for 84 species assessed through these partnership agreements were provided to the Minister for Sustainability, Environment, Water,

Population and Communities in 2012–13. At 30 June 2013 the Minister made 71 listing decisions for these species.

There were six threatened ecological community listings in 2012–13, including the first marine ecological community:

Giant Kelp Marine Forests of South East Australia Lowland Grassy Woodland in the South East Corner Bioregion Natural Grasslands of the Murray Valley Plains Monsoon vine thickets on the coastal sand dunes of Dampier Peninsula Scott River Ironstone

Association Western Sydney Dry Rainforest and Moist Woodland on Shale.

Assessments for six other ecological communities were also completed in 2012–13, with listing decisions to be made by the minister in 2013–14. At the time of listing, extensive information is published in Conservation Advice on the distribution of the ecological community and its key diagnostic characteristics, condition, relationship to state vegetation classifications, threats and priority conservation actions.

The department continued to identify ecological communities of high priority for potential listing as matters of national environmental significance under the EPBC Act.

Part of the prioritisation process focuses on endemic ecological communities listed by states and territories in the endangered and critically endangered categories that are likely to benefit most from additional protection under the EPBC Act. In 2012–13, two assessments were completed on state-endemic ecological communities (one in Western Australia and one in South Australia).

Managing threatened species and ecological communitiesThe listing of species and ecological communities triggers the protection mechanisms of the EPBC Act. This makes them a priority for funding and management to assist with their recovery and conservation, such as through the Caring for our Country initiative. For example, several listed woodlands and native grasslands are key targets under the Environmental Stewardship Program under Caring for our Country, which provides funds and information to support landholders in protecting threatened native vegetation on their properties.

Conservation advice for all new listings of species and ecological communities was prepared and published on the department’s website. Conservation advice provides guidance on immediate recovery and threat abatement activities that can be undertaken to ensure the conservation of newly listed species or ecological communities. The Minister for Sustainability, Environment, Water, Population and Communities approved conservation advice for 27 newly listed threatened species and six newly listed threatened ecological communities. To help inform the community about threatened species, 134 new or updated species profiles were published on the Species Profiles and Threats (SPRAT) database.

Recovery plansThe EPBC Act provides for the making or adopting of recovery plans and conservation advice for listed threatened species and ecological communities. Recovery plans set out the research and management actions needed to stop the decline and support the recovery of listed threatened species or threatened ecological communities.

The department, together with state and territory government environment agencies, made substantial investment in the recovery of threatened species and ecological communities by developing and implementing recovery plans. Twenty-six recovery plans covering 41 species and three ecological communities were approved by the minister or his delegate. Substantial progress was made on a further 81 recovery plans currently in preparation. The Threatened Species Scientific Committee (TSSC) continues to work with the department on national monitoring and reporting on significant species and ecological communities.

Key threatening processesThe EPBC Act provides for the listing of key threatening processes. A threatening process is one that threatens or may threaten the survival, abundance or evolutionary development of a native species or ecological community. The TSSC advises the minister in the listing of key threatening processes and whether a threat abatement plan or other actions are needed to abate key threatening processes.

One key threatening process—novel biota and their impact on biodiversity—was added to the list during 2012–

13.

A project reviewing departmental threat prioritisation and abatement processes which involved significant consultation with experts was completed in 2012. Recommendations from this review are being implemented where feasible.

Threat abatement plansThe Minister for Sustainability, Environment, Water, Population and Communities approved the Threat Abatement Plan to Reduce the Impacts on Northern Australia’s Biodiversity by the Five Listed Grasses in December 2012. The five listed grasses are introduced gamba grass (Andropogon gayanus), para grass (Urochloa mutica), olive hymenachne (Hymenachne amplexicaulis), mission grass (Cenchrus polystachios syn.) and annual mission grass (C. Pedicallatus syn. P. Pedicellatum).

A revised draft Threat Abatement Plan for Disease in Natural Ecosystems Caused By Phytophthora cinnamomi was released for public comment from 20 February 2013 until 20 May 2013.

The key threatening processes and threat abatement plans listed under the EPBC Act are at Appendix D.

Migratory speciesThe Memorandum of Understanding on the conservation of migratory sharks (Sharks MoU) came into effect in March 2010. On 4 February 2011 Australia became the 14th signatory to this agreement.

The global Sharks MoU is the first of its kind for sharks and aims to conserve migratory sharks throughout the world. It currently covers seven shark species: white shark (Carcharodon carcharias), whale shark (Rhincodon typus), basking shark (Cetorhinus maximus), porbeagle (Lamna nasus), shortfin mako (Isurus oxyrinchus), longfin mako (Isurus paucus) and the northern hemisphere populations of spiny dogfish (Squalus acanthias). All these species except for the spiny dogfish inhabit Australian waters.

The first signatory state meeting for the Sharks MoU was held in Bonn, Germany, in September 2012.

The work of an intergovernmental joint dugong taskforce with the Queensland Government was completed in December 2011. The taskforce assessed the effectiveness of dugong conservation and management activity in Queensland and provided recommendations for improvements.

The task force focused on:

better coordination and enhancing existing programs for dugong conservation enhancing compliance and enforcement improving community engagement consolidating current scientific knowledge and identifying future key research priorities.

A major outcome of the work of the dugong taskforce was the commitment by the Australian Government of $5 million to support sustainable dugong management and community led compliance work by Indigenous communities in Queensland.

The Sixth Meeting of Partners of the East Asian – Australasian Flyway Partnership was held in Palembang, Indonesia, from 19 to 22 March 2012. Three new partners —Mongolia, New Zealand and Rio Tinto—were welcomed, bringing the total partners to 27. Rio Tinto is the first partner from the international business sector. An important focus of the meeting was the work of Dr Richard Fuller from the University of Queensland. Dr Fuller is leading an Australian Research Council collaborative grant program, partly funded by the department, which aims to assess factors impacting on the status of Australia’s migratory shorebird populations.

1.2 Wildlife trade and managementThis section reports on the operation of the EPBC Act in regulating the import and export of Australia’s native flora and fauna and of species restricted through international trade controls, and the development of wildlife and fisheries conservation and management plans.

Live importsThe import of live animals and plants into Australia is controlled by the EPBC Act and the Quarantine Act 1908, administered by the Department of Agriculture, Fisheries and Forestry.

The list of specimens taken to be suitable for live import (the ‘live import list’) specifies all species and specimens that may be imported live into Australia. If a species is not listed then live specimens cannot be legally imported, even if the species has previously been imported or is already known to be in Australia. Anyone can apply to the minister to amend the live import list to include a new species. The applicant must provide a report that assesses the risks that the species may pose to the Australian environment. Each species proposed for inclusion on the live import list is the subject of a detailed assessment, including public consultation.

In 2012–13, five species were approved by the minister for inclusion on the live import list. These were New Zealand paua (Haliotis iris), a vinegar fly (Drosophila birchii), a parasitic blood fluke (Schistosoma haematobium) and the ram’s head snail (Bulinus truncates), all species for research purposes, and a geometrid moth (Eueupithecia cisplatensis) for biological control of Parkinsonia—a weed of national significance.

One species, the red-eared slider turtle (Trachemys scripta) was removed from the list due to its recognition as a serious pest. Two corrections/taxonomic updates were also approved in 2012–13; the scientific name of the sucker catfish (Otocinclus arnoldi) was updated and the conditions for import of the Mediterranean fruit fly (Ceratitis capitata) were corrected. Amendments were also made to the minimum size limits for certain species of ornamental fish to assist with better identification at ports of entry by border officials. Six further applications to amend the live import list received during the year are still under assessment. Three are for research purposes and three for zoological purposes.

There has been ongoing concern and confusion regarding importation of hybrid animals since the ministerial decision in 2008 to prohibit the savannah cat. The department published on its website a clarification of its position on the importation of hybrids and the reasons for its concern about the potential environmental risk posed by some hybrid animals.

Sustainable wildlife industriesThe international movement of wildlife and wildlife products is regulated under the EPBC Act. The EPBC Act provides for trade in specimens derived from regulated native species, species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the import of regulated live animals.

Approval can be given to export native and CITES specimens provided they have been derived from an approved captive breeding program, an artificial propagation program, an aquaculture program, a wildlife trade operation or a wildlife trade management plan.

The following wildlife programs were approved in 2012–13:

three captive breeding programs two new and seven revised artificial propagation programs two individual wildlife trade operations (non-fisheries) four wildlife trade management plans.

The department completed 58 assessments for transfers of live animals for exhibition in zoos and aquaria. Through a review process and facility assessment, the department ensures that live animals only go to appropriate zoological institutions. During 2012–13 the department completed 47 facility assessments for a wide range of animals, including komodo dragons (Varanus komodoensis), cheetah (Acinonyx jubatus) and white rhinoceros (Ceratotherium simum). The department also undertook an audit of all overseas institutions that hold koalas (Phascolarctos cinereus), wombats (Vombatidae), Tasmanian devils (Sarcophilus harrisii) or species listed as threatened under the EPBC Act to ensure the overseas institutions are complying with the agreed terms and conditions to hold these species.

Wildlife trade permitsUnder Part 13A of the EPBC Act it is an offence to import or export CITES specimens, export regulated native specimens and import regulated live specimens unless a permit has been issued or the import/export is

covered by an exemption under the EPBC Act.

In 2012–13 the department issued 1810 permits for the import/export of regulated specimens in the above categories. Of that number, 1556 permits were issued for CITES specimens, 233 permits for the export of regulated native specimens and 21 permits for the import of live specimens. The number of personal accompanied baggage permits issued was 15 635.

The department issued 217 non-commercial wildlife trade permits to scientists for a range of research purposes, including importing dugong samples from Palau and exporting Tasmanian devil DNA to the United States of America.

Fisheries assessment and approvalsUnder the EPBC Act the department assesses the management arrangements of Australian fisheries to ensure they are managed in an ecologically sustainable way and to identify areas for improvement. All Commonwealth-managed fisheries and all state and territory fisheries with an export component must undergo assessment.

A total of 110 fisheries are declared as either exempt from the export provisions of the EPBC Act for up to five years or as approved wildlife trade operations for periods of up to three years.

Of the 24 fisheries comprehensively assessed in 2012–13, six were Commonwealth managed, 17 were state managed and one was a small-scale operation. All were assessed within statutory timeframes. Twelve fisheries were approved as wildlife trade operations and 12 were exempt from the export provisions of the EPBC Act.

As a result of this assessment process, conditions and recommendations were agreed between the department and the management agencies for these fisheries that aim to actively enhance the ecologically sustainable management of these fisheries in the short to medium term. The outcomes are published in detailed reports on the department’s website at: www.environment.gov.au/coasts/fisheries/index.html.

1.3 Protected areasThe EPBC Act provides for the establishment and protection of Commonwealth reserves, including marine and terrestrial areas, through the preparation and implementation of management plans and the issuing of permits for a range of activities.

Commonwealth reservesThe Director of National Parks is responsible for the management of an estate of marine and terrestrial protected areas that are Commonwealth reserves under the EPBC Act. The Director of National Parks prepares a separate annual report on their management.

Commonwealth terrestrial reservesManagement plans provide for the protection and conservation of Commonwealth terrestrial reserves and must state how the reserves are to be managed. At 30 June 2013 the Director was responsible for managing seven Commonwealth terrestrial reserves. Management plans are currently in place for Kakadu and Uluru-Kata Tjuta National Parks, Norfolk Island National Park and Botanic Garden, and the Australian National Botanic Gardens.

Draft management plans have been prepared for Booderee and Christmas Island National Parks and have been the subject of public comment: at Booderee the draft is under consideration by the board of management, while the Christmas Island plan is expected to be finalised in late 2013. A draft management plan for Pulu Keeling National Park is also in preparation.

Permits in Commonwealth terrestrial reserves were issued for a range of activities, including scientific research in the following areas:

life-history traits, population genetics, population dynamics and nocturnal habits of robber crabs (Birgus latro) on Christmas Island

genetic distinctiveness of providence petrels (Pterodroma solandri) on Phillip Island compared with the Lord Howe Island population

presence and area occupied of Argentine ants (Linepithema humile) in Norfolk Island National Park and Botanic Garden

management threats to Kakadu National Park’s stone country by assessing condition and trends of

anbinik (Allosyncarpia spp.) and wetlands survival of ‘toad-smart’ northern quolls (Dasyurus hallucatus) in Kakadu National Park and

investigation of predator–prey relationships occurrence of bacteria causing melioidosis (an endemic infectious disease) in Top End soil and plants health of waterholes, mesic habitats and associated fauna at Uluru-Kata Tjuta National Park

influence of adjacent habitats on fish assemblages within Posidonia australis seagrass beds at Booderee National Park

remote sensing investigation of the extent of historic shipwreck material buried in Bherwerre Beach, Booderee National Park.

Access to biological resources and benefit sharing Part 8A of the Environment Protection and Biodiversity Conservation Regulations 2000 controls access to biological resources in Commonwealth areas for the purposes of research and development based on their genetic and biochemical properties.

In 2012–13, under Part 8A of the regulations, the department issued 58 permits for access to biological resources in Commonwealth areas. The permits covered a range of research topics including:

a survey of plants on Norfolk Island to determine the health status of all flora in order to improve plant biosecurity for Norfolk Island

an investigation of the resistance of native water lilies located in Kakadu National Park to a biocontrol agent for a pest species

a genetic study of the dugongs in the Torres Strait region to investigate genetic evidence for the distinctiveness and connectivity among Australian dugong populations to guide future management of the species.

Part 8A of the Regulations also requires the development of benefit-sharing arrangements where commercial or potentially commercial research is undertaken on biological resources from Commonwealth areas.

In 2012–13 one agreement was novated to another institution and one was terminated with mutual consent at the completion of research. No new agreements were required to be developed. Of the seven agreements made under the Regulations, three relate to currently active research, three relate to concluded research and one has been terminated.

Management of Commonwealth marine reservesOn 17 November 2012, 40 Commonwealth marine reserves were proclaimed under subsections 344(1) and 350(1) of the EPBC Act and the names of four existing reserves were amended. Associated with the declaration, seven reserves and one conservation zone were revoked, as these areas were included within the new marine reserves. As a consequence, there is now a total of 60 of Commonwealth marine reserves (including the Great Barrier Reef) covering more than one-third of Commonwealth waters and increasing the overall area of the Commonwealth marine reserve estate to some 3.1 million square kilometres.

There are no changes ‘on the water’ for users in the new areas added to the Commonwealth marine reserve estate until management plans come into effect on 1 July 2013 (for the South-east Commonwealth Marine Reserves Network) and 1 July 2014 (for other networks).

Management arrangements for the marine reserves (excluding the Great Barrier Reef and Heard and McDonald Islands Marine Reserve) that existed before the proclamation of the new reserves (including areas within new reserves that were formerly reserves) remain in place under the transitional arrangements until the new management plans come into effect.

The department is responsible for the daily management of these reserves (excluding the Great Barrier Reef) and collaborates with other Commonwealth agencies, including the Australian Fisheries Management Authority (AFMA) and Australian Customs and Border Protection Service (ACBPS) and state fisheries and conservation agencies in the delivery of management functions.

Under delegation from the Director of National Parks, the department managed Commonwealth marine reserves from July 2012 to March 2013. From March 2013 marine reserves and the transitional arrangements for the new marine reserves were transferred to the Director of National Parks. The Australian Antarctic Division continues to manage the Heard Island and McDonald Islands Marine Reserve under delegation from

the Director of National Parks.

Evaluation of Commonwealth marine reservesIn 2012–13 the department continued to implement a management program for Commonwealth marine reserves, building on partnerships with state and Commonwealth agencies for compliance, research and community education.

Cooperative management arrangements were developed with state agencies for services in the South-east Commonwealth Marine Reserves Network and the former Solitary Islands Marine Reserve (Commonwealth waters), Cod Grounds Commonwealth Marine Reserve, Mermaid Reef Marine National Nature Reserve, Ningaloo Marine Park (Commonwealth waters), Lord Howe Island Marine Park and Elizabeth and Middleton Reefs Marine National Nature Reserve and Great Australian Bight Marine Park (Commonwealth waters).

Australian Fisheries Management Authority (AFMA) currently provides Vessel Monitoring System (VMS) information for Commonwealth fishing vessels in marine reserves. The department is currently working with AFMA to introduce a VMS alert system in 2013 that will provide automatic and real-time information to owners and skippers when they enter marine reserves where their fishing activities are not allowed.

A total of 564 aerial surveillance flights were undertaken by the Border Protection Command and the department over Commonwealth marine reserves, resulting in 610 visits to Commonwealth marine reserves. Of these, the department undertook 36 flights, resulting in 82 visits to Commonwealth marine reserves.

A total of 142 vessel patrols have been undertaken under service agreements with state agencies. A range of activities in Commonwealth reserves require authorisation (through permits or approvals)

from the Director of National Parks. These include commercial activities (such as mining), commercial fishing, recreational fishing and scientific research. A total of 648 approvals and permits were issued or ongoing in 2012–13, comprising:

o 471 for commercial fishing o 137 for commercial tourism activities (charter fishing, scuba diving and whale and shark

watching)o 21 for scientific purposes (including one scientific research program with a seismic survey

component)o 14 for recreational access o three for media activitieso one for installationo one related to taking plants into the former Coral Sea Conservation Zone.

In response to compliance incidents in Commonwealth marine reserves, the department supported the execution of 48 enforcement actions, including 21 warning notices issued, 15 investigative actions (requests for information) issued, six infringement notices issued (including those subsequently reviewed), one formal investigation commenced, two matters pending criminal prosecutions and a further two matters pending civil action.

On 4 September 2012 the Federal Court of Australia ordered Venture Fishing Pty Ltd to pay a pecuniary penalty of $65 000 (plus costs of $28 000) and Desmond Woodley to pay a pecuniary penalty of $13 000 (and costs of $17 000) for contravention of section 354(1) of the EPBC Act by carrying on commercial fishing operations in the sanctuary zone of the Tasman Fracture Commonwealth Marine Reserve.

Ongoing implementation of a pest control program for introduced tropical fire ants (Solenopsis geminata–ginger ants) at a trial site on the Ashmore Reef has shown considerable success in reducing the numbers.

A survey of trepang and trochus at the Ashmore Reef Commonwealth Marine Reserve was undertaken in March 2013. The survey adopted new methodology following a scientific review of data collected from surveys over the last 10 years.

A patrol of the former Coringa Herald National Nature Reserve was undertaken in August 2012 with the ACBPS. Work undertaken included seabird monitoring, maintenance activities, ground truthing satellite imagery, collection of marine debris and surveys of vegetation condition and other natural

heritage values. In a cooperative effort with ACBPS and AFMA, seven large nets that were either abandoned or lost at

sea, commonly known as ‘ghost nets’, were recovered from northern Australian Commonwealth marine reserves and adjacent waters. The recovery of ghost nets prevents potentially significant impacts on marine animals and navigation. Of the nets recovered, a number of entangled marine animals were freed alive, including sea turtles, sharks and fish.

On 24 August 2012 the Heard Island and McDonald Islands Marine Reserve Management Plan 2005–2012 lapsed. A new management plan is under development. Interim management arrangements came into effect when the 2005–2012 management plan lapsed whereby the reserve would be subsequently managed in accordance with International Union for Conservation of Nature Category 1a Strict Nature Reserve principles.

Antarctic Treaty environment protectionThe EPBC Act exempts certain actions from requiring permits if a permit for that action has been issued under the Antarctic Treaty (Environment Protection) Act 1980 (ATEP Act). The EPBC Act states that, where an action is taken in accordance with a permit issued under the ATEP Act and the permit is in force, certain actions involving listed threatened species and ecological communities, migratory species and listed marine species are not offences. Four of the permits issued by the department under the ATEP Act in 2012–13 facilitated such exemptions.

2. Promoting ecologically sustainable developmentSection 516A of the EPBC Act requires the department to report on how the department’s activities and administration of the Act accorded with the principles of ecologically sustainable development. The principles of ecologically sustainable development embodied in section 3A of the EPBC Act are as follows:

Decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations.

If there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.

The principle of intergenerational equity—that the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations.

The conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making.

Improved valuation, pricing and incentive mechanisms should be promoted.

These principles are relevant to all activities and decisions made by the minister and the department in relation to the operation of the EPBC Act. These principles were complied with in all portfolio activities and decisions under the EPBC Act in 2012–13. In addition, the minister and the department have emphasised approaches such as strategic assessments, bilateral agreements between the Commonwealth and other jurisdictions and reform of regulatory arrangements as a means of better meeting the principles of ecologically sustainable development in the current and future operation of the EPBC Act. This section of the report describes the department’s work in these areas in 2012–13, specific environmental impact assessments and the department’s compliance and enforcement activities.

2.1 Strategic approachesStrategic assessmentsStrategic assessments under the EPBC Act provide a tool for reducing regulatory burden by considering Commonwealth and state or territory environmental planning issues in a single assessment process. These assessments can deliver greater certainty to developers, landholders, planners, industry, environmental groups, governments and the community in general. Strategic assessments are implemented at the landscape scale and explicitly consider cumulative environmental impacts.

The Commonwealth entered into four new strategic assessments during 2012–13.

urban development at Gungahlin with the Australian Capital Territory Government a biodiversity plan for coal mining in the Upper Hunter Valley, New South Wales, with the State of New

South Wales

BHP Billiton iron ore expansion for the Pilbara Hamersley Iron Pty Ltd (Rio Tinto) iron ore expansion for the Pilbara.

Work also continued on five strategic assessments including:

the comprehensive strategic assessment for the Great Barrier Reef World Heritage Area Perth and Peel regions, Western Australia additional urban growth corridors as part of the Melbourne strategic assessment Browse Basin LNG Precinct fire management policy, South Australia.

During 2012–13, the Minister for Sustainability, Environment, Water, Population and Communities (or his delegate) endorsed and/or approved the following policies, plans or programs assessed under a strategic assessment:

Midlands Water Scheme, Tasmania was approved (involving the third and final stage of three stages) development at Heathcote Ridge, New South Wales, was endorsed and approved urban development at Gungahlin, Australian Capital Territory, was endorsed.

As a result of the approval of the Tasmanian Midlands Water Scheme, approvals are not required for on-farm irrigation use, saving approximately 100 referrals by individual farmers.

In addition, as part of the Regional Sustainability Planning Program, an agreement under section 146 was signed with the New South Wales Government to strategically assess a program based on the revised Lower Hunter Regional Conservation Plan.

Marine bioregional planningThe Commonwealth marine environment is a matter of national environmental significance under the EPBC Act. With the release of these plans, the values and pressures within this vast and remote entity are systematically identified and prioritised for the first time. As such, the plans will contribute to improved decision making under the Act.

Marine bioregional plans were released in August 2012 for the South-west, North-west, North and Temperate East marine regions. These plans provide a comprehensive description of the conservation values of the marine regions, the pressures these values are under and priorities for further effort and investment. The plans also provide guidance on the risk of significant impact that some activities might represent, particularly in regard to location or timing. The minister must have regard to these plans, prepared under section 176 of the EPBC Act, in all decisions for which the plans are relevant.

The department uses these plans in the assessment of referrals and other assessments under the EPBC Act (primarily for offshore proposals), to provide regional context for other activities such as prosecution for breaches of the EPBC Act and to inform research and funding programs.

Assessment bilateral agreementsA key function of assessment bilateral agreements is to reduce duplication of environmental assessment and regulation between the Commonwealth and the states and territories. Assessment bilateral agreements allow the Commonwealth to accredit particular state and territory assessment processes and, in some cases, state and territory approval decisions. To be accredited, state and territory processes need to meet best-practice criteria set out in the EPBC Act and its regulations. Assessment bilateral agreements implement the Council of Australian Governments (COAG) national reform agenda to reduce duplication between jurisdictions for environmental impact assessment.

If proposed actions are covered by an assessment bilateral then they are assessed under the accredited state and territory processes. After assessment, the proposed actions still require approval from the Commonwealth minister under the EPBC Act.

At 30 June 2013 assessment bilateral agreements under the EPBC Act were in place between the Commonwealth and all jurisdictions except New South Wales. The New South Wales assessment bilateral agreement expired in January 2012 and a new agreement is being negotiated. Until a new assessment bilateral agreement is in place, proposals in New South Wales may be assessed by a one-off accredited assessment.

The department is working with Western Australia, the Northern Territory and Queensland to review current assessment bilateral agreements in view of recent amendments to those jurisdictions’ environmental assessment legislation. In addition, the department is also working with the Northern Territory and South

Australia to complete a five-year review of the operation of the current assessment bilateral agreement, as required by section 65 of the EPBC Act.

Separate administrative arrangements have been developed to provide for daily operational arrangements of matters in the assessment bilateral agreements. Administrative arrangements are currently in place with Queensland, the Northern Territory, Tasmania and the Australian Capital Territory. The department is working closely to develop arrangements with Western Australia and Victoria.

2.2 Environmental impact assessmentThe department works closely with proponents, state, territory and local governments and other stakeholders, including consultants, to ensure that the requirements of the environmental impact assessment process under the EPBC Act are understood. The department encourages proponents to engage with the department in the early stages of developing their project so that EPBC Act related issues can be highlighted and taken into account in a project’s decision making and planning.

Projects that most effectively achieve regulatory certainty under the EPBC Act are consistently characterised by:

Proponents engaging early with the department to ensure that EPBC Act obligations are fully understood and taken into account.

Proponents seeking to address EPBC Act requirements, where appropriate, at the same time as state or territory requirements, to maximise the opportunity to use accredited state and territory assessment processes where possible.

Projects using environmentally conscious design that avoids or minimises impacts such as habitat clearing.

Proponents providing high-quality information to regulatory agencies early in the assessment process. Proponents engaging positively with the community. Project outcomes clearly maintaining and enhancing the environment, including, where appropriate,

providing additional habitat for threatened species.

The proponent is responsible for satisfying regulatory requirements under the EPBC Act before taking their proposed action. The proponent initiates this process by submitting a referral for a determination on whether a proposed action will have or is likely to have a significant impact on matters of national environmental significance (MNES). If a significant impact on MNES is likely and further assessment is necessary, the proposed action will be determined to be a controlled action and approval by the minister or their delegate will be required.

The EPBC Act provides for a case-by-case assessment that is most appropriate to the complexity and scale of the project by either the Australian Government or an accredited state and territory process (see also section 2.1: Bilateral agreements).

In 2012–13 the statutory timeframes for the three key decision points in the environmental assessment process—a decision on whether the action is a controlled action, an assessment approach decision and the approval decision—were met 63 per cent of the time. Of the decisions that ran over the statutory timeframe, 49 per cent were made within a further 10 business days of the statutory due date.

Detailed statistics relating to EPBC Act referrals, assessments and approvals are in Appendix A.

ReferralsIn 2012–13, 439 actions were referred to the Australian Government for decision on whether approval was required under the EPBC Act. This is an increase of 7 per cent from the previous year. Thirty-two referrals were the result of compliance actions by the department. Queensland accounted for the highest proportion of referrals at 26 per cent of the total actions referred.

Mining; residential development; land transport; commercial development; marine mineral, oil and gas exploration; and tourism and recreation were the most heavily represented industries of total actions referred, reflecting broader trends within Australia’s economy. Smaller numbers of referrals received by the department related to energy generation (renewable and non-renewable); natural resource management, water management and use and waste management (sewerage and non-sewerage).

The possible outcomes of a referral are listed below:

Not a controlled action: no approval required, as the action described in the referral will not have a

significant impact on matters of national environmental significance. Not a controlled action/particular manner: no approval required, but the action must be undertaken in

the manner specified in the referral. This provision may be used when there is clear evidence that a particular mitigation or avoidance measure will reduce or avoid significant impacts. Penalties apply to breaches of particular manner decisions.

Controlled action: approval is required through the assessment and approval process under the EPBC Act.

Clearly unacceptable: the proposal is determined, without further assessment, to have an unacceptable impact on one or more matters of national environmental significance.

In 2012–13, decisions involving referrals were as follows:

193 actions were determined to be not controlled actions and to require no further assessment 96 actions were determined to be not controlled actions if carried out in a particular manner 118 actions were determined to be controlled actions and to require further assessment and approval

decision one action was determined to be clearly unacceptable.

The highest number of controlled action decisions (40) related to mining projects.

Thirty nine referrals were withdrawn before a controlled action decision, 43 were withdrawn after a controlled action decision and two lapsed after a controlled action decision. Four reconsideration requests were received during the year and five decisions were made.

Assessments and approvalsOnce a project is determined to be a controlled action under the EPBC Act, further assessment of the likely impacts to matters of national environmental significance is undertaken. A decision is made for all controlled action determinations on the approach by which this assessment is conducted (the ‘assessment approach decision’). There are five different levels of assessment. When deciding on the assessment approach the department considers factors such as the scale of the project, the likely impacts and the amount of information already provided. Each level requires technical information provided by the proponent to be considered and each allows for a public comment period. Comments received during this time are then considered as part of the environmental impact assessment.

The assessment of 16 projects were completed under bilateral agreements in 2012–13 and a further 83 projects were under assessment using a bilateral agreement at 30 June 2013.

Following assessment, the Minister for Sustainability, Environment, Water, Population and Communities or the minister’s delegate will decide whether to approve the proposed action and the conditions applied to that action. In 2012–13, 81 controlled actions were approved, an increase of 8 per cent on the 75 controlled actions approved in 2011–12. Conditions attached to approvals may include requirements to:

manage the environmental effects of construction provide compensatory habitat to offset impacts on listed species establish monitoring programs to ensure water quality is maintained use independent audits manage effects on cetaceans.

Decisions made, notices issued and invitations to comment under the EPBC Act are published on the department’s website.

Meeting statutory timeframes for assessment approach and approval decisionsThe assessment approach and approval decisions made under the EPBC Act are governed by statutory timeframes. In 2012–13, 45 of the 95 assessment approach decisions were made outside the prescribed statutory timeframes. The majority of late assessment approach decisions were made within 10 business days of the statutory due date.

Thirty-two of the eighty-one approval decisions were made outside the statutory timeframe.

Further information on statutory timeframes for referral, assessment and approval decisions are provided in Table A14 at Appendix A.

Actions by the Australian Government and actions on Commonwealth landIn addition to the eight MNES protected by the EPBC Act, the EPBC Act also regulates actions that have a significant environmental impact on Commonwealth land or that are carried out by an Australian Government agency.

In 2012–13 five controlled action determinations were made relating to Commonwealth land and four controlled action determinations were made relating to actions by Australian Government agencies.

The relevant Australian Government agency or employee must inform the Minister for Sustainability, Environment, Water, Population and Communities of the proposal and the minister must assess the action before advising the agency or employee on how to proceed.

In 2012–13 advice was requested on seven occasions by the Department of Infrastructure and Transport and the Civil Aviation Safety Authority for proposals involving Commonwealth airports. The minister’s delegate determined that advice was not required for five of those proposals and advice is required for two of the proposals. As at 30 June 2013, this advice had not been provided.

Statements of reasonsSections 77(4) and 78C(4) of the EPBC Act allow persons to request a statement of reasons about controlled action decisions and reconsideration of controlled action decisions respectively. Under the Administrative Decisions (Judicial Review) Act 1977 (ADJR Act) a statement of reasons can also be requested for administrative decisions made under legislation. In 2012–13, 28 requests were received and 29 statements provided under the ADJR Act and the EPBC Act (the statutory timeframe for providing one of the statement of reasons requested in 2011–12 carried into 2012–13).

Reconsideration of a decisionReconsideration of a decision is available in limited circumstances and is the only way to revoke and remake a decision. Typically, reconsiderations are undertaken on request when there is substantial new information or a substantial change in the likely effects on protected matters.

In 2012–13 five were reconsidered by the Minister for Sustainability, Environment, Water, Population and Communities or his delegate and three decisions were revoked and new decisions made.

Sea dumping The Environment Protection (Sea Dumping) Act 1981 fulfils Australia’s international obligations under the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 and 1996 Protocol Thereto (London Convention and Protocol), which aims to protect and preserve the marine environment from pollution, especially from dumping at sea. During 2012–13, 10 sea dumping permits and nine variations were issued by the department.

2.3 Compliance and enforcementThe department considers all allegations of non-compliance under Part 3 of the EPBC Act. The 364 incidents examined by the department in 2012–13 appear to represent a decline from the 448 incidents examined in 2011–12 and 466 incidents examined in 2010–11. However, this can be attributed to a change in the way the department records and assesses allegations of non-compliance following the introduction of a departmental compliance and enforcement management database in early 2012. A further 195 matters reported to the department in 2012–13 were found not to represent potential breaches of the EPBC Act and were immediately resolved and recorded as enquiries rather than allegations of non-compliance.

EPBC Act compliance and enforcement activity is consistent with the department’s overarching Compliance and Enforcement Policy, which was updated in September 2010 following approval by the Attorney–General’s Department and adoption by the minister. This policy provides regulated entities, stakeholders and the wider community with clear advice on how the department exercises its compliance and enforcement responsibilities across the entire range of legislation administered by the department. The policy is available on the department’s website at: www.environment.gov.au/epbc/publications/epbc-compliance-enforcement-policy.html.

The EPBC Act Compliance and Enforcement Policy sits beneath the overarching Compliance and Enforcement Policy and is specific to the EPBC Act. The policy is intended to describe the department’s approach to, and the principles that guide, compliance and enforcement activities under the EPBC Act; promote a consistent, transparent and fair approach to EPBC Act compliance and enforcement activities; and provide guidance for stakeholders and the wider community about how the department addresses potential contraventions of the

EPBC Act.

Further information on EPBC Act compliance and enforcement activities is in the cross-cutting activities section Regulatory compliance and enforcement in the Corporate Outcome chapter and also in the annual report of the Director of National Parks.

Working with others in compliance and enforcementThe department has an active EPBC Act compliance and enforcement program and shares information and undertakes a variety of joint enforcement operations with other state and territory environmental regulators through the Australasian Environmental Law Enforcement and Regulators Network (AELERT).

AELERT is a network of local, state, territory and Australian Government and New Zealand agencies that share information and develop cohesive regulatory practices. Joint compliance and enforcement operations are undertaken by AELERT members in priority operational areas.

The department continues to work closely with the Interpol Environment Crime Program on a number of operational and strategic matters. The department is the liaison portal between Commonwealth and state agencies and overseas law enforcement counterparts.

The department has established relationships with other Australian Government and state agencies for the provision of EPBC Act regulatory services, the Australian Customs and Border Protection Service, Australian Fisheries Management Authority and the Australian Quarantine Inspection Service. Cooperative arrangements are in place with a number of state agencies to provide compliance and enforcement services in state waters adjoining Commonwealth marine reserves.

To further encourage compliance, the department engages in cooperative partnerships to build public awareness of the EPBC Act. Training on awareness and use of EPBC Act compliance and enforcement powers was provided internally and to a number of co-regulator and partner agencies.

The department also provides information to the general public to raise understanding of the EPBC Act and its operations, and policies and guidelines to provide guidance for stakeholders in determining whether a proposed action is likely to have a significant impact on a species or ecological community listed under the EPBC Act. Departmental publications produced in 2012–13 are listed in Appendix C of this report.

Compliance audit planThe department’s compliance audit plan comprises a random audit program and a strategic risk-based audit program to verify compliance with EPBC Act conditions of approval and particular manner requirements and permits granted under the Environment Protection (Sea Dumping) Act 1981. The compliance audit plan also evaluates the effectiveness of the conditions and requirements for protecting matters of national environmental significance. The total number of audits conducted in 2012–13 across both audit programs was 15.

In 2012–13 the department audited, or commenced auditing, four projects under the random compliance audit program. These projects were selected from decisions made since the inception of the EPBC Act and included two road upgrade projects in Victoria, a gas and condensate field in the North West Shelf and a port facility in Western Australia.

The strategic risk-based audit program focuses on specific areas such as industry sectors, geographical areas and protected matters. During 2012–13 the program focused on 11 projects, including an artificial reef located offshore from Sydney and the related sea dumping permit, a road upgrade in South Australia, a water pipeline in South-east Queensland, a mine in Western Australia, a port facility in Western Australia and the related sea dumping permit, and a review of four approvals that included conditions requiring the establishment and management of habitat reserves and offsets. Overall, the audits identified a substantial level of compliance with conditions. Instances of non-compliance were addressed in accordance with the department’s Compliance and Enforcement Policy.

The audit programs have also increased cooperation with state and local government co-regulators by facilitating information sharing. A summary of the findings of each completed audit is published on the department’s website at: www.environment.gov.au.

The department has a program of actively monitoring projects post approval to ensure adherence to conditions attached to approvals and fulfilment of requirements attached to particular manner decisions. At 21 June 2013, 1137 projects were being monitored by the Compliance and Enforcement Branch. Variations of conditions attached to 81 approvals were processed in 2012–13. There were 33 site visits undertaken.

Breaches and investigations The department examined 364 new incidents or activities representing potential breaches of Part 3 of the EPBC Act in 2012–13 and dealt with 195 additional enquiries. This is fewer than the 448 incidents examined in 2011–12 and 466 incidents examined in 2010–11. Twenty-eight site inspections were undertaken to obtain information to assess whether alleged non-compliance actions had occurred. Incident reports are carefully examined to determine whether or not the EPBC Act applies. The person or organisation making the initial incident report is advised of the outcome of the completed matter. The most frequently reported matters relate to impacts on koalas in Queensland and New South Wales, Natural Temperate Grasslands of the Victorian Volcanic Plain in Victoria, and Carnaby’s black-cockatoos (Calyptorhynchus latirostris), Baudin’s black-cockatoos (Calyptorhynchus baudinii) and Forest red-tailed black-cockatoos (Calyptorhynchus banksii naso) in Western Australia.

Many reports involve actions that have not yet commenced. In these cases the department investigates them to see if the activity should be regulated. During 2012–13, 32 referrals were received as a result of departmental intervention. Of these, 11 were determined to be controlled actions and three were determined to be not controlled actions provided the actions were undertaken in a particular manner. Eleven were determined to be not controlled actions. The remaining six are yet to be determined as at 30 June 2013.

In 2012–13 the department began 18 new formal investigations of alleged breaches of the EPBC Act. Of these:

five relate to offences under EPBC Act Part 3 (matters of national environmental significance) two relate to offences under EPBC Act Part 7 (matters of national environmental significance—

approvals for action) eight relate to offences under EPBC Act Part 13 (wildlife related matters) two relate to offences under EPBC Act Part 15 (marine protected areas related matters). one relates to an offence under the Water Efficiency Labelling and Standards Act 2005.

In 2012–13 the department executed six monitoring warrants under the EPBC Act and one search warrant under the Water Efficiency Labelling and Standards Act 2005. Thirty-five notices to produce books and records under section 486F of the EPBC Act were also served.

In 2012–13 enforcement outcomes included four successful criminal prosecutions, three infringement notices, six enforceable undertakings and one remediation determination as follows:

August 2012—a Tasmanian resident and company were fined for commercial lobster fishing within the Tasman Fracture Commonwealth Marine Reserve (section 354(1)(f) of the EPBC Act). The resident received a penalty of $13 000 and was ordered to pay costs of $17 000. Venture Fishing received a penalty of $65 000 and was ordered to pay costs of $28 000: Minister for Sustainability, Environment, Water, Population and Communities v Woodley [2012] FCA 957.

August 2012—an enforceable undertaking for $305 000 was accepted from Hancock Victorian Plantations Pty Ltd for clearing of 0.7 hectares of critically endangered ecological community Natural Temperate Grasslands of the Victorian Volcanic Plain.

August 2012—an enforceable undertaking for $80 400 was accepted from Coppercats Pty Ltd and Gallivantour Super Pty Ltd for clearing 6.7 hectares of habitat for the vulnerable western ringtail possum (Pseudocheirus occidentalis) and endangered Carnaby’s black-cockatoo (Calyptorhynchus latirostris) at Picton East in Western Australia. The funds will be used to purchase habitat for conservation.

October 2012—a Darwin resident appeared at the Darwin Magistrates Court and entered a plea of guilty to two matters under the Historic Shipwrecks Regulations. He was fined a total of $500.

October 2012—an enforceable undertaking for $184 000 was accepted from Marloelle Pty Ltd for clearing 4 hectares of the critically endangered ecological community White Box–Yellow Box–Blakely’s Red Gum and Derived Native Grassland at Windmill Hill Estate, Tamworth, and New South Wales. The funds will be used for research and to manage the community elsewhere on the site.

October 2012—an enforceable undertaking for $200 000 was accepted from Goodman Property Services Pty Ltd for clearing 3.4 hectares of the critically endangered ecological community Cumberland Plain Shale Woodlands and Shale–Gravel Transition Forest at Bungarribee Industrial Estate in Eastern Creek, New South Wales. The funds will contribute to research on specific threats affecting the ecological community, of which less than 10 per cent of good quality remains.

November 2012—a remediation determination was issued to two residents of Victoria, requiring an offset valued at approximately $2 000 000 for damaging up to 6.8 hectares of the critically endangered ecological community Natural Temperate Grasslands of the Victorian Volcanic Plain. An environmental consultant must also be employed to prepare and oversee a management plan to retain and enhance the remnants of the community remaining onsite.

November 2012—the department negotiated three new conditions of approval with Koolan Iron Ore, including a payment of $415 000 to better protect island populations of the northern quoll (Dasyurus hallucatus) in Western Australia. A departmental investigation alleges that Koolan Iron Ore failed to meet its quarantine obligations for a period of time and placed the quolls at risk.

April 2013—an enforceable undertaking was accepted from Murrindindi Shire Council to pay $85 000 following road maintenance works which resulted in the disturbance and destruction of endangered spotted tree frog (Litoria spenceri) habitat. The funds will be directed towards various measures that will improve council management practices and provide direct benefits to the frog in this region.

May 2013—two people entered pleas of guilty to charges of exporting a regulated native species without a permit at the Downing Centre Local Court in Sydney on Thursday, 2 May 2013. They were placed on a 12-month good behaviour bond.

June 2013—an enforceable undertaking for $100 000 was accepted from the Oakford Land Company Pty Ltd in response to the clearing of 8.2 hectares of habitat for the endangered Carnaby’s black-cockatoo (Calyptorhynchus latirostris) at Nowergup, Western Australia. The money will be used to purchase habitat for conservation or for revegetation and rehabilitation projects which will benefit black cockatoos in south-west Western Australia.

June 2013—a Sydney fisherman pleaded guilty to violating section 10A of the Environment Protection (Sea Dumping) Act 1981, which prohibits the dumping of waste from any vessel into Australian waters. The fisherman was convicted of the offence and received a fine of $2000.

28 June 2013—a Sydney resident appeared at the Downing Centre Magistrates Court in relation to 24 charges under section 303GN of the EPBC Act. The matter has been adjourned until the 27 September 2013 for sentencing.

Legal actions The following legal actions occurred in 2012–13:

The Western Australian Land Authority (Landcorp) v Minister for Sustainability, Environment, Water, Population and Communities (WAD250/2011)The Western Australian Land Authority (Landcorp) made an application to review the minister’s approval decision in relation to the Mandurah Junction Landcorp Development. The matter was held in abeyance pending the outcome of an earlier challenge of the delegate’s controlled action decision in which Justice Gilmour quashed the delegate’s decision and referred the matter to the department for reconsideration according to law (The Western Australian Land Authority (Landcorp) v The Minister for Sustainability, Environment, Water, Population and Communities [2012] FCA 226). On 19 December 2012, by consent, the Federal Court quashed the minister’s approval decision.

Buzzacott v Minister for Sustainability, Environment, Water, Population and Communities (No 2) [2012] FCA 403Mr Buzzacott filed an application for judicial review of the minister’s decision to approve the expansion of the Olympic Dam processing plant and mine, subject to conditions. On 20 April 2012 Justice Besanko dismissed the application.

Mr Buzzacott appealed the decision. The appeal was heard by the Full Federal Court on 21 June 2012 in Adelaide. No decision has been handed down.

Secretary to the Department of Sustainability and Environment (Vic) v Minister for Sustainability, Environment, Water, Population and Communities (Cth) [2013] FCA 1The Secretary to the Department of Sustainability and Environment (DSE), Victoria, made an application to the Federal Court of Australia to review a decision of the minister that the DSE proposed action to conduct a research trial involving cattle grazing within the Alpine National Park would have clearly unacceptable impacts on a matter protected by Part 3 of the EPBC Act. On 3 August 2012 Justice Kenny dismissed DSE’s application on all four grounds of review.

Minister for Sustainability, Environment, Water, Population and Communities v Bill Bourchier Pty Ltd (VID1125/2012) On 21 December 2012 the department filed civil penalty proceedings in the Federal Court proceedings against Bill Bourchier Pty Ltd and William Henry Bourchier (as executive officer of Bill Bourchier Pty Ltd). The department alleged that the removal of 343 buloke trees (Allocasuarina luehmannii) and 106 grey box trees (Eucalyptus microcarpa) between 2007 and 2010 has, will or is likely to have a significant impact on the endangered south-eastern red-tailed black-cockatoo (Calyptorhynchus banksii graptogyne). The department alleged that Bill Bourchier Pty Ltd contravened sections 18(3)(b), 20(1)(b), 484 and 494 of the EPBC Act.

The department is in the process of settling the matter with Mr Bourchier following the court-ordered mediation on 9 April 2013.

Seafish Tasmania Pelagic Pty Ltd v Minister for Sustainability, Environment, Water, Population and Communities (QUD52/2013) On 4 February 2013 Seafish Tasmania Pelagic Pty Ltd filed an application for judicial review in the Federal Court challenging the decisions of the minister made under sections 390SD and 390SF of the EPBC Act to prohibit a ‘declared commercial fishing activity’ due to the uncertainty about the environmental impacts of the commercial fishing activity until an adequate scientific assessment can be undertaken.

The matter was heard for three days commencing 25 June 2013. No decision has been handed down.

Tarkine National Coalition Incorporated v Minister for Sustainability, Environment, Water, Population and Communities and Shree Minerals Limited (TAD8/2013)On 2 April 2013 the Tarkine National Coalition Incorporated applied to the Federal Court for judicial review of the minister’s decision to approve an action (developing and operating a magnetite and hematite mine in Tasmania). On 17 July 2013 the Federal Court upheld the challenge by the applicant to the decision of the minister to approve the development and operation of the proposed mine. The challenge was upheld on the grounds that the minister failed to have regard to a mandatory consideration in section 139(2) of the EPBC Act, namely a previously approved conservation advice for Sarcophilus harrisii (Tasmanian Devil), as the approved conservation advice was not contained in the proposed decision brief provided to the minister in November 2012, or in the final decision brief provided to the minister in December 2012.

Zoubi and Minister for Sustainability, Environment, Water, Population and Communities (2013/1448) On 11 April 2013 the department received notice that Mr Zoubi had lodged an application with the Administrative Appeals Tribunal for review of a decision to refuse an application for the export of two glossy black cockatoos (Calyptorhynchus lathami) and two gang gang cockatoos (Callocephalon fimbriatum) from Australia. Trade in these animals is regulated, as they are listed in Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) to which Australia is a party. At the directions hearing held on 31 May 2013, the tribunal ordered the department to provide a list of additional questions for Mr Zoubi and that Mr Zoubi provide information on whether Israeli authorities might provide a conditional import permit. The matter was ongoing as at 30 June 2013.

Esposito & Ors v The Commonwealth & Ors (Heritage Estates) (NSD924/2013)On 24 May 2013 an application was made in the Federal Court by a number of landowners in the Heritage Estates area in Shoalhaven City Council in New South Wales seeking a declaration that the Commonwealth has acquired or affected the acquisition of their property. At the interlocutory hearing on 31 May 2013 the applicants’ primary submission was that the Environment Minister’s refusal decision (refusal of proposed rezoning and public infrastructure works by Shoalhaven City Council) dated 13 March 2009 under section 130 of the EPBC Act amounted to compulsory acquisition of the applicants’ land given that the minister’s decision rendered the land empty of value and gave rise to a just terms claim under section 51(xxxi) of the Constitution and a claim for compensation under section 519 of the EPBC Act. The applicants were unsuccessful in obtaining the interlocutory relief sought and the matter was ongoing as at 30 June 2013.

Other litigation actionsLee and Anor v Commonwealth of Australia and Anor [HC No. 5 of 2012]The Commonwealth of Australia and the Murray–Darling Basin Authority have been named as respondents in proceedings originally commenced in the High Court but since transferred to the Federal Court [No. VID 1129 or 2012].

The applicants have challenged the constitutional validity of the Water Act 2007 (Cth).

The parties are in the course of seeking orders resolving interlocutory issues.

3. EPBC Act regulatory reform Since the release of the government response to the Independent Review of the EPBC Act in 2011, the government has been working to deliver a simpler environmental protection system that has clearer standards and provides for faster decisions. The government committed to achieve better environmental outcomes while improving the efficiency of Australia’s management of matters of national environmental significance.

In 2012–13 the department continued to implement the national environmental law reform agenda. There was a continued focus on streamlining assessment and approval processes and achieving better environmental outcomes for matters of national environmental significance, including:

Continued improvement in administration of environmental law. Implementing a client service charter for proponents (refer to section 2.2: Environmental impact

assessment). Producing more guidance on species and ecological communities (refer to section 1.1: Threatened

species, ecological communities and migratory species). Continuing to work closely with states, territories and industry to increase the use of strategic

assessments (refer to section 2.1: Strategic assessments). Reviewing assessment bilateral agreements and administrative arrangements to improve efficiency

and reduce duplication (refer to section 2.1: Bilateral agreements).

On 3 October 2012 the finalised EPBC Act Environmental Offsets Policy and Offsets Assessment Guide were released following extensive consultation and testing. An environmental offset is a conservation action that is intended to compensate for the negative environmental impacts of an action following the consideration of all reasonable avoidance and mitigation measures.

The offsets policy and assessment guide are consistent with best-practice offset principles and provide greater transparency around how suitable offsets are determined under the EPBC Act. The policy applies to environmental assessments and approvals (including strategic assessments) for all protected matters under the EPBC Act. The guide has been developed to give effect to the principles outlined in the policy. It provides specific guidance in relation to the suitability of offsets for threatened species and ecological communities listed under the EPBC Act.

In May 2013 the department released its Strategic Assessment Prospectus which seeks input from industry and states regarding potential new strategic assessments. Strategic planning that considers both development and ecological needs on a landscape scale has the potential to deliver increased regulatory efficiency, business certainty and better protection of matters of national environmental significance.

During 2013 the department is running an expression of interest process inviting stakeholders to submit proposals for potential strategic assessments and seek stakeholder feedback on criteria against which future strategic assessments would be prioritised. In 2013 the department released the Environmental Impact Assessment Client Service Charter, which outlines the department’s commitments in administering environmental impact assessment under the EPBC Act. The charter is intended to provide business and the public with greater certainty about what they can expect from the environmental impact assessment process. It also outlines how the department will work with state and territory assessment agencies.

Environmental impact assessment decisions are made in accordance with relevant legislation, policies and guidelines and take into account the individual circumstances of a particular project. The charter is intended to provide clarity and guidance about the service that stakeholders can expect during assessment process. The charter also provides clear advice about ways in which proponents, consultants, states and territories and members of the public can work with the department to streamline the assessment process under the EPBC Act.

New cost recovery measures for environmental impact assessments and strategic assessments under the EPBC Act were proposed in 2011 as part of the government’s Response to the Independent Review of the EPBC Act. Implementation of these arrangements has been deferred until the next period of government and is dependent on legislative change to the EPBC Act.

In relation to fees for wildlife trade permit applications a new cost recovery impact statement for 2013–2018 was prepared and published on the department’s website and new regulations detailing increased fees commenced on 1 July 2013. A new streamlined permit application system was introduced in 2013 to improve administrative efficiency and usability.

Legislation amendmentsDuring 2012–13 the government introduced two Bills to amend the EPBC Act:

Environment Protection and Biodiversity Conservation Amendment (Declared Commercial Fishing Activities) Bill 2012This Bill amended the EPBC Act to provide for the Minister for Sustainability, Environment, Water, Population and Communities to establish an independent expert panel to conduct an assessment into the potential environmental, social and economic impacts of a declared commercial fishing activity and to prohibit the declared commercial fishing activity while the assessment is undertaken. The Bill received Royal Assent on 19 September 2012.

Environment Protection and Biodiversity Conservation Amendment Bill 2013This Bill amended the EPBC Act to create a matter of national environmental significance for coal seam gas and large coal mining developments which are likely to have a significant impact on a water resource and establish penalties and offences to prohibit this action. The Bill received Royal Assent on 24 June 2013.

Appendix A: StatisticsTable A1: Overview of referralsREFERRALS 2012–13 TOTAL SINCE

COMMENCEMENT OF THE EPBC ACT IN 2000

Referrals being processed at 1 July 2012 114

Total referrals received 439 4833

Referrals withdrawn before (Controlled Action) decision 39 213

Referrals where a decision has been made (including reconsiderations) 408 4512

Approval Required – controlled action 118 1265

Approval Not Required – action to be taken in a particular manner 96 932

Approval Not Required – no conditions on action 193 2306

Action Clearly Unacceptable 1 9

Referrals lapsed after (Controlled Action) decision 2 48

Referrals withdrawn after (Controlled Action) decision 43 247

Referrals being processed at 30 June 2013 103

Table A2: Reconsideration of decisions RECONSIDERATION OF DECISIONS DECISIONSReconsideration decisions being processed at 1 July 2012 2

Reconsideration requests received 2012–13 4

Reconsideration decisions made Total 5

Original Decision Confirmed 1

Decision Revoked and New Decision Substituted 4

Decision changed from NCA (particular manner) to NCA 1

Decision changed from NCA (particular manner) to new manners 3

Reconsiderations pending at 30 June 2013 1

Note: CA = controlled action; NCA = not controlled action

Table A3: Referrals and referral decisions by jurisdictionDECISIONS MADE IN 2012–13

REFERRALS RECEIVED IN 2012–13

ACTION CLEARLY UNACCEPTABLE

APPROVAL REQUIRED

APPROVAL NOT REQUIRED

TOTAL DECISIONS

CA PM NCAAntarctica

Christmas Is 5 2 2 2 6

Cocos-Keeling Is 1 1 1 2

Commonwealth Marine 32 1 2 20 1 24

Norfolk Is 2 1 1 2

Other Aust Territory

Other Country

ACT 10 4 7 4 15

Jervis Bay Territory

NSW 70 26 14 19 59

NT 12 7 2 4 13

QLD 116 28 7 67 102

SA 16 2 3 9 14

Tas 15 10 6 3 19

Vic 63 18 16 24 58

WA 97 18 18 58 94

Total 439 1 118 96 193 408

Note: CA = controlled action; NCA = not controlled action; PM = action to be take in a particular manner.

Table A4: Referrals and referral decisions by activity categoryDECISIONS MADE IN 2012–13

REFERRALS RECEIVED IN 2012–13

ACTION CLEARLY UNACCEPTABLE

APPROVAL REQUIRED

APPROVAL NOT REQUIRED

TOTAL DECISIONS

CA PM NCAAgriculture and Forestry 2 2 1 1 4

Aquaculture 4 3 2 5

Commercial development 33 11 2 20 33

Commonwealth 10 3 4 5 12

Energy generation and supply (non-renewable)

22 3 3 10 16

Energy generation and supply (renewable)

15 6 4 6 16

Exploration (mineral, oil and gas – marine)

33 1 2 21 24

Exploration (mineral, oil and gas – non-marine)

7 1 2 1 4

Manufacturing 1

Mining 88 40 12 25 77

Natural Resources Management

23 4 5 19 28

Private 5 5 5

Residential development 64 13 7 36 56

Science and research 5 3 2 5

Telecommunications 2 1 1 2

Tourism and recreation 26 4 10 12 26

Transport – air and space 3 1 1 1 3

Transport – land 54 19 7 25 51

Transport – water 10 3 3 2 8

Waste management (non-sewerage)

9 1 2 5 8

Waste management (sewerage)

3 2 4 6

Water management and use

20 3 5 11 19

Total 439 1 118 96 193 408

Note: CA = controlled action; NCA = not controlled action; PM = action to be take in a particular manner.

Table A5: Decisions on assessment approach and assessments by typeTYPE OF ASSESSMENT DECIDED IN 2012–13

ASSESSMENTS COMPLETED IN 2012–13

ASSESSMENTS WITHDRAWN IN 2012–13

ASSESSMENTS LAPSED IN 2012–13

RECOMMENDATION REPORTS COMPLETED IN 2012–13

RECOMMENDATION REPORTS(NO APPROVAL) COMPLETED IN 2012–13

ASSESSMENTS IN PROGRESS AT 30 JUNE 2013

RECOMMENDATION REPORTS IN PROGRESS AT 30 JUNE 2013

Commonwealth assessments

Preliminary documentation

70 42 15 0 42 4 129 16

Public environment report

4 5 2 0 5 0 13 1

Referral information

3 3 0 0 3 0 1 1

Environmental impact statement

8 3 9 0 3 0 39 3

State/Territory assessments

Bilateral assessment

21 16 11 1 16 N/A 83

Accredited process

10 8 2 1 8 N/A 47 N/A

Table A6: Approvals in 2012–13TYPE OF APPROVAL NUMBER OF

APPROVALSNUMBER OF APPROVALS SINCE THE COMMENCEMENT OF THE ACT

Action approved 81 622

Action not approved 0 10

Total decisions 81 632

Awaiting approval at 30 June 2013 29

Awaiting further information from proponent 15

Table A7: Advice requested and provided under section 160AUTHORISATION PROVISION

REQUESTS FOR ADVICE

ADVICE NOT REQUIRED

ADVICE REQUIRED

ASSESSMENT COMPLETED

ADVICE PROVIDED

R6.01—Sea Dumping Permit 13 8 5 2 2

S160—Airport Major Development Plan

7 5 2 0 0

S160—Airspace Management 0 0 0 0 0

S160—Foreign Aid 1 0 0 0 0

Table A8: Number of matters protected by the EPBC ActMATTER PROTECTED NOT CONTROLLED

ACTION – PARTICULAR MANNER

CONTROLLED ACTION

Division 1 Matters of national environmental significance

Section 12 World heritage values of a world heritage listed property

9 12

Section 15B National heritage values of a national heritage listed place

10 13

Section 16 Ecological character of a declared Ramsar wetland

10 9

Section 18 Listed threatened species or ecological community

80 114

Section 20 Listed migratory species 42 41

Section 21 Nuclear activities with a significant impact on the environment

2 1

Section 23 Commonwealth marine environment 26 8

Section 24B Activities in the Great Barrier Reef Marine Park

1 6

Division 2

Section 26 Commonwealth land 4 5

Section 27B Activities involving Commonwealth heritage listed places overseas

1 0

Section 28 Commonwealth or Commonwealth agency activity

10 4

Total 195 213

Table A9: Processing of nominations and changes to the list of threatened species, ecological communities and key threatening processes

SPECIES ECOLOGICAL COMMUNITIES

KEY THREATENING PROCESSES

Items on which the Threatened Species Scientific Committee has provided advice to the minister*

94 10 1

Ministerial decisions made on Threatened Species Scientific Committee advice

78 6 0

Ministerial decisions pending Threatened Species Scientific Committee advice

16 4 1

Number of ministerial decisions made on Threatened Species Scientific Committee advice in the following categories:

Uplisted 12 0 0

Downlisted 2 0 0

New 13 6 0

Delisted 49 0 0

Number of amendments to the list 76 6 0

Rejected/ineligible 2 0 0

No change in status 0 0 0

Total number of listings as at 30 June 2013

1756 62 19

* Includes ongoing assessments from the 2007, 2008 and 2009 Finalised Priority Assessment Lists. Note: Figures include both public nominations and nominations from the Threatened Species Scientific Committee.

Table A10: Species and ecological communities covered by recovery plans (at 30 June 2013)*SPECIES ECOLOGICAL COMMUNITIES TOTAL

VULNERABLE ENDANGERED CRITICALLY ENDANGERED

EXTINCT IN THE WILD

VULNERABLE ENDANGERED CRITICALLY ENDANGERED

Total number of listed entities

806 671 176 1 1 37 24 1746

Number covered by plans in preparation

81 61 12 0 0 11 17 217

Number covered by plans in place

270 415 86 1 1 20 3 796

Percentage covered by plans in place or in preparation* (%)

44 71 56 100 100 84 83 58

* The remaining 42 per cent of listed species not covered by recovery plans are covered by conservation advices (see the section ‘Managing threatened species and ecological communities’).

Table A11: Number of recovery plans in preparation and in place at 30 June 2013SINGLE SPECIES

MULTISPECIES

ECOLOGICAL COMMUNITIES

MULTIREGIONAL

TOTAL

Number of plans in place 420 46 21 7 494

Number of plans in preparation*

76 18 27 1 122

Number of plans made or adopted in 2012–13

17 4 3 2 26

* Does not include 18 existing plans that are being revised.

Table A12: Cetacean permits and applications received and permits granted 2012–13EPBC ACT SECTION APPLICATIONS

RECEIVEDPERMITS GRANTED

CONDITIONS VARIED OR REVOKED

SUSPENDED OR CANCELLED

238(3)(a) cetacean conservation; or (b) incidental interference

8 5 (3 permits were pending at 30 June

2013)

2 permits had conditions varied

0

238(3)(c) whale watching 0 0 0 0

Total 8 5 2 0

Table A13: Assessments of Commonwealth and state managed fisheries completed 2012–13JURISDICTION FISHERY CURRENT

ASSESSMENT DECISIONS

DECISION DATE

QLD East Coast Spanish Mackerel Exempt 16/07/2012

WA Trochus Fishery Exempt 02/08/2012

WA Temperate Demersal Gillnet and Demersal Longline Fisheries

WTO 30/08/2012

NT Mud Crab Fishery Exempt 17/09/2012

NT Offshore Net and Line Fishery WTO 17/09/2012

Commonwealth Torres Strait Trochus Fishery WTO 05/10/2012

Commonwealth Western Trawl Fisheries WTO 28/11/2012

VIC PQ Aquatics WTO 07/12/2012

WA Marine Aquarium Fish Managed Fishery WTO 21/12/2012

NT Spanish Mackerel Exempt 25/01/2013

WA Shark Bay Scallop Managed Fishery Exempt 28/01/2013

WA Shark Bay Prawn Managed Fishery Exempt 28/01/2013

WA Exmouth Gulf Prawn Managed Fishery Exempt 04/02/2013

NT Aquarium Fishery WTO 12/02/2012

Commonwealth Southern and Eastern Scalefish and Shark Fishery

WTO 25/02/2013

Commonwealth Torres Strait Prawn Fishery WTO 13/03/2013

Commonwealth Bass Strait Central Zone Scallop Exempt 08/04/2013

WA Abrolhos Islands and Midwest Trawl Managed Fishery

Exempt 09/04/2013

WA West Coast Deep Sea Crustacean Exempt 03/05/2013

Managed Fishery

WA South Coast Trawl Fishery WTO 14/05/2013

Commonwealth Australian High Seas Permits Exempt 20/05/2013

WA West Coast Rock Lobster WTO 28/05/2013

QLD Coral Reef Fin Fish Fishery WTO 12/06/2013

VIC Victorian Abalone Fishery Exempt 19/06/2013

Note: WTO = World Trade Organization.

Compliance with timeframes (section 518 report) The EPBC Act and Regulations specify timeframes within which decisions must be made and other actions completed. If the timeframes are not met, then in accordance with section 518 of the EPBC Act a statement must be provided setting out the reasons for the delay. Matters not completed within statutory timeframes in 2012–13 are listed in tables A14 and A15 below.

Table A14: Referrals, assessments and approvals in 2012–13SECTION TOTAL LATE REASONS FOR DELAY75(5) Controlled action determination 404 139 Administrative delays

77(1) Controlled action determination notice

416 25 Administrative delays

77(4) Controlled action timing of reasons for decision

6 3 Administrative delays, Availability of decision-makers

88(1) Assessment approach decision 95 45 Administrative delays

88(2) Assessment approach decision and controlled action determination made on the same day

95 9 Administrative delays

91(1) Notice of decision on assessment approach

116 20 Administrative delays

95A(2) Request for further information 60 10 Administrative delays

95A(3) Direction to publish 47 17 Administrative delays

95C(2) Recommendation report 41 5 Administrative delays

96A(4)(a) Public Environment Report guidelines to designated proponent

3 1 Administrative delays

101A(4)(b) Provide Environmental Impact Assessment guidelines to designated proponent

8 3 Pressure of ministerial business

100(2) Provide Public environment report to the Minister

5 1 Further detailed information sought from proponent

130(1B) Timing of decision on approval 81 32 Administrative delays, Need for ongoing consultation with proponents over content of final approval conditions

145D(1) Minister must decide whether or not to extend the approval period

1 1 Administrative delays

156B(1) Decision whether to accept a varied proposal

23 6 Administrative delays, Delay in obtaining sufficient information to make decision

156E(2) Timing of written notice to accept a varied proposal

19 3 Administrative delays

156E(3) Direction to publish the request to accept a varied proposal

23 5 Administrative delays, Administrative error

156F(5) Publication of notice relating to change of person proposing to take action

10 3 Administrative delays, Administrative errors, Delay in reply from party invited to comment

170A(c) Publication of information relating to assessments: controlled action decisions

416 25 Administrative delays

170A(d) Publication of information relating to assessments: decisions on assessment approach

116 20 Administrative delays

170A(e) Publication of information relating to assessments: preliminary documentation

97 52 Administrative delays

170A(f) Publication of information relating to assessments: guidelines

15 6 Administrative delays

170A(h) Publication of information relating to assessments: reports or statements

17 13 Administrative delays

170A(ia) Publication of information relating to assessments: recommendation reports

50 41 Administrative delays

170A(j) Publication of information relating to assessments: other matters

81 9 Administrative delays

Table A15: Other provisionSECTION TOTAL LATE REASONS FOR DELAY194Q(3) Decision about inclusion of an item in the Subdivison A List. Minister to decide whether or not to include item

88 8 Delay in obtaining sufficient information to make decision and more information required to make decision.

194Q(8) Decision about inclusion of an item in the Subdivison A List. Additional requirements if Minister decides not to include item

51 49 Administrative delays

266B(6) Approved conservation advice for listed threatened species and listed threatened ecological communities

31 25 Administrative delays

273(1) Deadline for recovery plan 35 28 Delays by state governments preparing/providing input to plans for adoption (affected 27 entities)

303CI Time limit for making permit decisions – CITES species

1556 3 Administrative delays

303DH Time limit for making permit decisions – native species

233 1 Administrative delays

303EG(1) Timing of decision about proposed amendment of list

4 2 Pressure of ministerial business

324JI(1) Council must comply by the time specified in the finalised priority assessment list

2 2 Need for additional stakeholder consultation and consider all material

Appendix B: CommitteesThreatened Species Scientific Committee The Threatened Species Scientific Committee (TSSC) advises the minister on the amendment and updating of the EPBC Act’s lists of threatened species, threatened ecological communities and key threatening processes and on the making or adoption of recovery plans and threat abatement plans.

Table B16: Membership of the Threatened Species Scientific Committee at 30 June 2013Professor Helene Marsh (Chair)

Professor Peter Harrison

Dr Andrea Taylor

Dr Bill Humphreys

Dr Michelle Heupel

Dr Keith Walker

Dr Gordon Guymer

Ms Judy Backhouse

Dr Sue McIntyre

Dr Sarah Legge

Indigenous Advisory Committee The Indigenous Advisory Committee (IAC), established under section 505B of the EPBC Act, provides advice to the minister on the operation of the EPBC Act by incorporating Indigenous people’s knowledge of land management and the conservation and sustainable use of biodiversity.

Table B17: Membership of the Indigenous Advisory Committee at 30 June 2013Ms Melissa George (Chair)

Ms Chrissy Grant (Deputy Chair)

Mr Jason Field

Mr Dave Johnston

Mr Frank Loban

Ms Francine McCarthy

Mr Bruce Martin

Mr Joe Morrison

Mr Kado Muir

Mr Klynton Wanganeen

Australian Heritage Council The Australian Heritage Council (AHC), which is established under the Australian Heritage Council Act 2003, is the Australian Government’s principal advisory body on heritage matters. The AHC is responsible under the EPBC Act for assessing the heritage values of places nominated for possible inclusion in the National and Commonwealth heritage lists and for advising the minister on heritage issues.

Table B18: Membership of the Australian Heritage Council at 30 June 2013Membership

Professor Dr Carmen Lawrence (Chair)

Dr Jennie Whinam

Associate Professor Peter Valentine

Dr Jak Ah Kit

Dr Jacqueline Huggins AM

Ms Kate Clark

Ms Helen Lardner

The council met six times during 2012–13.

Appendix C: 2012–13 publicationsGuidelines and policy statementsAustralian Ramsar site nomination guidelines—Module 4 of the national guidelines for Ramsar wetlands—Implementing the Ramsar Convention in Australia.

Draft significant impact guidelines: Coal seam gas and large coal mining developments – impacts on water resources. Released for public consultation June 2013 until 25 July 2013.

Environmental Impact Assessment, Client Service Charter—May 2013.

Environment Protection and Biodiversity Conservation Act 1999: Environment Assessment Manual—Implementing Chapter 4, EPBC Act.

Environment Protection and Biodiversity Conservation Act 1999: Environmental Offsets Policy, October 2012.

Referral guidelines for three species of Western Australian black cockatoos.

Interim Guidelines on the Outstanding Universal Value of the Great Barrier Reef World Heritage Area—for Proponents of Actions—May 2013.

Interim Koala Referral Advice for Proponents.

Melbourne Urban Development—Policy Statement for Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) referrals—July 2012.

Strategic Assessments: Policy Statement for EPBC Act referrals—March 2013.

Pamphlets, fact sheets and other publicationsFact sheetsA World Heritage nomination for Cape York Peninsula.

Farming and nationally protected Natural Grasslands of the Murray Valley Plains.

Landholders & Upland Basalt Eucalypt Forests.

Wetland fact sheetsAustralia’s obligations under the Ramsar Convention: legislative support for wetlands.

Wetlands in Australia—roles and responsibilities.

Notification of change in ecological character.

Limits of acceptable change.

The wise use of wetlands in Australia.

GuidesNatural Grasslands on Basalt and Fine-textured Alluvial Plains of Northern New South Wales and Southern Queensland, and Natural Grasslands of the Queensland Central Highlands and the Northern Fitzroy Basin—a guide to the identification, assessment and management of nationally threatened ecological communities.

Grey Box (Eucalyptus microcarpa) Grassy Woodlands and Derived Native Grasslands of South-Eastern Australia—a guide to the identification, assessment and management of a nationally threatened ecological community.

Compliance audit summaries of findingsCompliance audits completed during 2012—summary of findings.

Compliance audits completed during 2013–summary of findings.

ReportsP Valentine et al. (2013) The natural attributes for World Heritage nomination of Cape York Peninsula, Australia.

ProspectusesStrategic assessment prospectus—May 2013.

Appendix D: Key threatening processes and threat abatement plansTable D19: Key threatening processes and threat abatement plansKEY THREATENING PROCESS DATE OF

EFFECTTHREAT ABATEMENT PLAN REQUIRED?

APPROVED THREAT ABATEMENT PLAN

Competition and land degradation by rabbits

16 July 2000 Yes 2008

Competition and land degradation by unmanaged goats 16 July 2000 Yes 2008

Dieback caused by the root-rot fungus (Phytophthora cinnamomi)

16 July 2000 Yes 2001*

Incidental catch (bycatch) of sea turtles during coastal otter-trawling operations within Australian waters north of 28 degrees south

4 April 2001 No

Incidental catch (or bycatch) of seabirds during oceanic longline fishing operations

16 July 2000 Yes 2006

Infection of amphibians with chytrid fungus resulting in chytridiomycosis

23 July 2002 Yes 2006

Injury and fatality to vertebrate marine life caused by ingestion of, or entanglement in, harmful marine debris

13 August 2003 Yes 2009

Invasion of northern Australia by gamba grass (Andropogon gayanus) and other introduced grasses

16 September 2009

Yes 2012

Land clearance 4 April 2001 No

Loss and degradation of native plant and animal habitat by invasion of escaped garden plants, including aquatic plants

8 January 2010 No+

Loss of biodiversity and ecosystem integrity following invasion by the yellow crazy ant (Anoplolepis gracilipes) on Christmas Island, Indian Ocean

12 April 2005 No# 2006#

Loss of terrestrial climatic habitat caused by anthropogenic emissions of greenhouse gases

4 April 2001 No

Novel biota and their impact on biodiversity 26 February 2013

No

Predation by European red fox (Vulpes vulpes)

16 July 2000 Yes 2008

Predation by exotic rats on Australian offshore islands of less than 1000 sq km (100 000 hectares)

29 March 2006 Yes 2009

Predation by feral cats 16 July 2000 Yes 2008

Predation, habitat degradation, competition and disease transmission by feral pigs

6 August 2001 Yes 2005

Psittacine circoviral (beak and feather) disease affecting endangered psittacine species

4 April 2001 Yes 2005

The biological effects, including lethal toxic ingestion, caused by cane toads (Bufo marinus)

12 April 2005 Yes 2011

The reduction in the biodiversity of Australian native fauna and flora due to the red imported fire ant (Solenopsis invicta)

2 April 2003 No# 2006#

* This threat abatement plan was disallowed in the Senate on 17 November 2009. Until such time as a new or revised plan is made, the 2001 threat abatement plan remains in place. A revised draft plan is under development.+ The department provides an annual report to the Threatened Species Scientific Committee on the implementation of the

Australian Weeds Strategy and additional measures that abate this key threatening process.# Both of these key threatening processes are covered by the 2006 threat abatement plan: The impacts of tramp ants on biodiversity in Australia and its territories.

Operation of the Natural Heritage Trust of Australia Act 1997This annual report is prepared in accordance with section 43 of the Natural Heritage Trust of Australia Act 1997 (the NHT Act) and reports on the operation of the NHT Act for the period 1 July 2012 to 30 June 2013. The NHT Act requires the report to include the financial statements relating to the operations of the Account and the Auditor-General’s report on the financial statements. This information is in the Financial Statements section of the annual report.

Activities carried out under the NHT Act are integral to achieving the department’s outcomes on biodiversity and ecosystems. Consequently, some of these activities are reported on elsewhere in this annual report. The Natural Heritage Trust provides the principal funding stream to support the government’s Caring for our Country initiative.

Purpose and objectives of the Natural Heritage TrustThe Natural Heritage Trust was established by the NHT Act to conserve, repair and replenish Australia’s natural resources. It is administered by the Natural Heritage Ministerial Board, which in 2012–13 comprised the Minister for Sustainability, Environment, Water, Population and Communities and the Minister for Agriculture, Fisheries and Forestry.

In order to meet the objectives of the NHT Act, the Australian Government invests in national priority areas of natural resource management, predominantly through the Caring for our Country initiative.

Caring for our CountryThe government established Caring for our Country in 2008 to:

conserve, protect and restore the Australian environment by making it healthier, better protected, well managed and resilient

secure our farming resource base and support sustainability of food and fibre industries by focusing on protecting ecosystems and promoting biodiversity, clean air and water and healthy soils

ensure that, in a changing climate, we can continue to provide a diversity of ecological services that Australians rely on.

The 2010–11 and the 2011–12 Caring for our Country Report Cards were released in March and June 2013 respectively. The report cards detail annual achievements and progress on the Caring for our Country five-year outcomes, including contributions made by projects funded under the Natural Heritage Trust and the other appropriations that contribute to the Caring for our Country initiative. Report cards are available on the Caring for our Country website at: www.nrm.gov.au.

Until 30 June 2013 Caring for our Country was managed jointly by the Department of Sustainability, Environment, Water, Population and Communities and the Department of Agriculture, Fisheries and Forestry. From 1 July 2013, the second five-year phase of Caring for our Country will commence. Future Caring for our Country funding will be administered as two streams—Sustainable Environment and Sustainable Agriculture—by the respective departments, working in close cooperation.

Operation of the Product Stewardship Act 2011Purpose The National Waste Policy, agreed by environment ministers in November 2009 and endorsed by Council of Australian Governments in October 2010, provides the strategic national framework for waste management and resource recovery to 2020. The policy set six key directions and identified 16 priority strategies that would benefit from a national or coordinated approach.

The Product Stewardship Act 2011 came into effect on 8 August 2011, delivering on a key commitment by the Australian Government under Strategy 1 of the National Waste Policy. The Act provides a national framework to effectively manage the environmental, health and safety impacts of products and, in particular, those impacts associated with the disposal of products.

The objectives of the Act are to:

reduce the impact that products have on the environment, throughout their life cycle reduce the impact that substances contained in products have on the environment, and on the health

and safety of human beings, throughout the lives of those products contribute to Australia meeting its international obligations concerning the impacts referred to above contribute to reducing the amount of greenhouse gases emitted, energy used and water consumed in

connection with products and waste from products.

OperationThe Act provides for three levels of product stewardship: voluntary, co-regulatory and mandatory.

Voluntary product stewardship The Act provides for organisations to voluntarily seek accreditation by the Australian Government for product stewardship arrangements that meet specified quality requirements. The purpose of voluntary accreditation is to provide an avenue for encouraging and recognising industry initiated product stewardship and to provide assurance to the community that a voluntary product stewardship arrangement is operating to achieve the outcomes it has committed to achieve.

In November 2012 the Product Stewardship Regulation 2012 and the Product Stewardship (Voluntary Arrangements) Instrument 2012 came into effect. The regulation and instrument support the accreditation of voluntary product stewardship arrangements and specify the application fees for the accreditation of arrangements under the Act. The first application round for accreditation under the Act opened in June 2013.

Co-regulatory product stewardshipThe National Television and Computer Recycling Scheme, established by the Product Stewardship (Televisions and Computers) Regulations 2011, is the first co-regulatory scheme under the Product Stewardship Act 2011. The scheme sets annual recycling targets for televisions and computers. Collection and recycling is funded by importers and manufacturers of these products through membership fees paid to industry-run co-regulatory arrangements. Co-regulatory arrangements are approved by the Australian Government to deliver against the outcomes of providing reasonable access to collection services, meeting annual recycling targets and, from 2014 to 2015, meeting a material recovery target.

All of the importers and manufacturers identified as liable parties under the scheme in 2012–13 have complied with their obligation to join a co-regulatory arrangement. Three co-regulatory arrangements were operational in 2012–13, with two further arrangements approved to commence operation.

A total of 482 television and computer collection services have been provided to the community under the scheme, including 388 ongoing collection sites and 94 temporary collection events.

The department’s experience in implementing the scheme, combined with feedback from stakeholders, drives a program based on review and continuous improvement. Through the first recycling target year, the department highlighted a number of areas in which the scheme could be improved through streamlined administrative processes. This included televisions and computers being combined into one product class and therefore one recycling target from 2013–14 onwards. This change simplifies the collection and recycling of these products, thereby having a positive influence on costs to industry and the on-ground delivery.

Regulatory (mandatory) product stewardship

The Act provides for mandatory product stewardship, where both requirements and outcomes are prescribed in regulations. There are currently no mandatory product stewardship schemes in place. There were no regulations under development for mandatory product stewardship schemes under the Act in 2012–13.

Product Stewardship Advisory GroupSection 108B of the Act establishes the Product Stewardship Advisory Group. The role of the group is to provide independent advice to the minister for consideration in developing a list of products for potential consideration, during the next financial year, for some form of accreditation or regulation under the Act. Members are appointed on the basis that they have appropriate qualification, knowledge and experience. The Product Stewardship Regulation 2012 sets out the group’s remuneration. In June 2013 the parliamentary secretary published the first annual product list.

Table 2: Membership of the Product Stewardship Advisory Group at 30 June 2013NAME START FINISHMs Kathleen Mackie (Chair) 21 November 2012 20 November 2015

Mr Jeff Angel 21 November 2012 20 November 2015

Ms Rebecca Brown 21 November 2012 20 November 2015

Dr Peter Burn 21 November 2012 20 November 2015

Mr Philip Casey 21 November 2012 20 November 2015

Mr John Gertsakis 21 November 2012 20 November 2015

Ms Karen Gomez 21 November 2012 20 November 2015

Mr Russ Martin 21 November 2012 20 November 2015

Ms Rose Read 21 November 2012 20 November 2015

Ms Val Southam 21 November 2012 20 November 2015

Reporting This section fulfils the reporting requirements of the Product Stewardship Act 2011 (section 107) for the period 1 July 2012 to 30 June 2013.

Operation of the Product Stewardship (Oil) Act 2000The Product Stewardship for Oil Program is underpinned by a package of legislation and associated regulations.

The Product Stewardship (Oil) Act 2000 is the primary piece of legislation that establishes the general framework and benefit entitlements. The Product Stewardship (Oil) Regulations 2000 prescribe the product stewardship benefit rates. The policy settings for the stewardship arrangements are established and governed by the parliamentary secretary. The Act also establishes the Oil Stewardship Advisory Council.

The Excise Tariff Amendment (Product Stewardship for Waste Oil) Act 2000 and the Customs Tariff Amendment (Product Stewardship for Waste Oil) Act 2000 and associated Regulations establish the product stewardship levy. The Product Stewardship (Oil) (Consequential Amendments) Act 2000 contributes to the establishment of the levy and the general administrative provisions in the Product Grants and Benefits Administration Act 2000. The Product Grants and Benefits Administration Act 2000 sets out eligibility criteria and establishes the administrative mechanisms used by the Australian Taxation Office to pay benefits to recyclers.

Purpose The Product Stewardship for Oil Program came into effect on 1 January 2001. The program’s objectives are to:

provide economic incentives to increase the uptake, and encourage appropriate recycling and use of, used oil

encourage the environmentally sustainable management and re-refining of used oil, and its re-use support economic recycling options for used oil.

The program aims to develop different forms of recycling and a diverse range of products and markets for recycled oil in order to help ensure the long-term viability of the used-oil recycling industry in Australia.

OperationThe Product Stewardship for Oil Program consists of an economic incentives package (a levy/benefit scheme). The department has policy responsibility for the program, but it is administered by the Australian Taxation Office. The Treasurer sets the levy amount.

The product stewardship oil levy was introduced on 1 January 2001. It is currently set at 5.449 cents per litre of lubricant oil produced or sold in Australia. The levy applies to both domestic and imported oils and is paid by oil producers and importers. Exported oil is not levied. The levy is collected as an excise by the Australian Taxation Office and as customs duty by the Australian Customs and Border Protection Service. While the levy is intended to offset the cost of benefits paid under the Product Stewardship for Oil program, it is not hypothecated to benefit payments.

Product stewardship benefits are paid to recyclers as a volume-based incentive to encourage increased oil recycling. Benefits are provided at different rates depending on the type of product: the lowest benefits are provided for basic burner fuels and the highest are provided for full recycling into as new, re-refined base oil. Table 3 shows the 2012–2013 benefit rates.

Benefit rates partly reflect the comparative effort involved in recycling and partly reflect the environmental benefit achieved. Rates are set by determining the amount of incentive required for industry to undertake and increase each form of recycling. Benefits were paid to 16 recyclers during 2012–2013.

On 23 April 2013 the Australian Taxation Office published a decision impact statement which advised that used oil which had only been filtered and dewatered was no longer eligible for a Category 6 benefit. This decision was a consequence of an Administrative Appeals Tribunal decision relating to excise. The Australian Taxation Office’s decision impact statement, on its website at: http://law.ato.gov.au/atolaw/view.htm?DocID=LIT/ICD/2011/3815/00001, explains how the Administrative Appeals Tribunal’s decision affects eligibility for Category 6 benefits.

The department will consider the implications of this decision in the context of the recommendations of the 2013 Independent Review of the Product Stewardship (Oil) Act 2000.

Table 3: Product stewardship benefit rates in 2012–13CATEGORY PRODUCT BENEFIT

(CENTS PER LITRE)

1 Re-refined base oil (for use as a lubricant or as hydraulic or transformer oil) that meets the prescribed criteria1

50

2 Other re-refined base oils (for example, chain bar oil) 10

3 Diesel fuels that comply with the Fuel Standard (Automotive Diesel) Determination 2001, as in force from time to time

7

4 Diesel extenders:

(a) that are filtered, dewatered and demineralised

(b) that, if combined with diesel fuels, would produce a combined fuel that complies with the determination mentioned in Category 3

5

5 High-grade industrial burning oils (filtered, dewatered and demineralised) 5

6 Low-grade industrial burning oils (filtered and dewatered) 3

7 Industrial process oils and process lubricants, including hydraulic and transformer oils (reprocessed or filtered, but not re-refined)

0

8 Gazetted oil, consumed in Australia for a gazetted use 5.449

1 The Product Stewardship (Oil) Regulations 2000 specify a health, safety and environmental standard for re-refined lubricants. The basic requirement of this standard is to produce a non-carcinogenic and non-toxic product.

Reporting This section fulfils the requirements of section 35 of the Product Stewardship (Oil) Act 2000 and covers the operation of that Act and the operation of the Product Stewardship for Oil Program from 1 July 2012 to 30 June 2013.

Product stewardship levyIn 2012–13 total revenue collected from the product stewardship levy was $33.5 million, comprising $21.6 million in excise collections on domestic production and $11.9 million in customs duty on imported oils. An amount of $2.3 million was paid back to clients in the form of drawbacks (for export) and refunds, bringing the balance of revenue from the levy to $31.3 million.

Levy collections are recorded against a number of categories based on the type of oil. Customs duty is recorded under international customs classifications. Tables 4 and 5 show excise and customs tariff collections for 2012–13 by category.

Product stewardship benefitsA total of $33.4 million was paid as product stewardship benefits in 2012–2013, with $31.5 million paid to recyclers for recycling used oil.2 This is a decrease of $1.4 million in benefits for recycling compared with 2011–12.

The volume of recycled oil on which benefits were paid in 2012–2013 was 253 million litres, compared to 271 million litres in 2011–12. Figure 2 shows the annual volume of used oil recycled since the program began.3

Table 4: Product stewardship levy collection (excise) by categoryITEM NUMBER CATEGORY LEVY COLLECTED15.1 Lubricant base oils $18 970 990

15.2 Lubricant base oils (recycled) $2 124 828

15.3 Petroleum-based greases and their synthetic equivalents $502 820

32 The difference between the two figures is that category eight benefits are not included in the second figure because they are not benefits for recycling used oil. Category eight benefits are a refund of the product stewardship levy where oil is incorporated into products.

Total $21 598 638

Source: Australian Taxation Office, 2013.

Table 5: Product stewardship levy collection (customs tariff) by categoryITEM NUMBER CATEGORY LEVY COLLECTED27101991 Petroleum based oils including lubricants, hydraulic fluids and

transformer oils$8 135 887

27101992 Petroleum-based greases $511 171

27109191 Petroleum-based oils including lubricants, hydraulic fluids and transformer oils

$2106

27109192 Petroleum-based greases $2940

27109991 Petroleum-based oils including lubricants, hydraulic fluids and transformer oils

$252 572

27109992 Petroleum-based greases $29 031

34031110 Preparations for the treatment of textiles, containing petroleum oils, solid $1313

34031190 Preparations for the treatment of textiles, containing petroleum oils, liquid $1754

34031910 Other preparations (for example, cutting oil, anti-corrosion) containing petroleum oils, solid

$65 446

34031990 Other preparations (for example, cutting oil, anti-corrosion) containing petroleum oils, liquid

$495 379

34039110 Preparations for the treatment of textiles, not containing petroleum oils, solid

$3097

34039190 Preparations for the treatment of textiles, not containing petroleum oils, liquid

$9390

34039910 Other preparations (for example, cutting oil, anti-corrosion) not containing petroleum oils, solid

$97 152

34039990 Other preparations (for example, cutting oil, anti-corrosion) not containing petroleum oils, liquid

$384 088

38112110 Additives for lubricating oil, containing petroleum oils, solid

$78 955

38112190 Additives for lubricating oil, containing petroleum oils, liquid

$1 770 578

38190000 Hydraulic brake fluids $90 688

Total $11 931 546

Source: Australian Customs and Border Protection Service, 2013.

Figure 1: Annual volume of oil recycled since the Product Stewardship for Oil program began

Note: The pre-PSO program value is an industry estimate. Program benefits commenced in January 2001, therefore the 2000–01 value was derived from data covering only six months.Source: Australian Taxation Office, 2013.

Figure 2: Annual volume of recycled oil in each category since the Product Stewardship for Oil program began

Note: Volumes reported for categories two and four are too small to chart. Category eight and the additional benefit do not contribute to the overall volume of used oil recycled. Program benefits commenced in January 2001, therefore the 2000–01 value was derived from data covering only six months.Source: Australian Taxation Office, 2013.

Figure 2 shows the annual volume of used oil claimed in each category since the program began. Table 6 provides a breakdown by product category for 2012–13, indicating volumes recycled and benefit payments.

The volume of recycled oil claimed in category one in 2012–13 was a decrease of 2.7 million litres on 2011–12. The volume claimed in category five decreased by 3.0 million litres while the volume in category six decreased by 12.0 million litres.

Table 6: Product stewardship benefit payments by category in 2012–13CATEGORY BENEFIT

PAYMENTSLITRES

1. Re-refined base oil (for use as a lubricant or a hydraulic or transformer oil) that meets the specified criteria

$22 628 518 45 257 035

2. Other re-refined base oils (for example, chain bar oil) $45 000 454 000

3. Diesel fuels that comply with the Fuel Standard (Automotive Diesel) Determination 2001, as in force from time to time

nil nil

4. Diesel extenders: (a) that are filtered, de-watered and de-mineralised (b) that, if combined with diesel fuels, would produce a combined fuel that complies with the determination mentioned in category 3

nil nil

5. High grade industrial burning oils (filtered, de-watered and de-mineralised)

$6 518 310 130 366 200

6. Low grade industrial burning oils (filtered and de-watered) $2 304 849 76 828 287

7. Industrial process oils and lubricants, including hydraulic and transformer oils (re-processed or filtered, but not re-refined)

nil nil

8. Gazetted oil consumed in Australia, for a gazetted use

$1 918 177 35 202 370

Total volume of recycled oil (excludes category eight3) 252 905 522

Total benefit payments $33 415 253

3 Benefits paid under category eight do not contribute to the overall volume of recycled oil.Source: Australian Taxation Office, 2013.

Monitoring and evaluation The third Independent Review of the Product Stewardship (Oil) Act 2000 commenced in March 2013 and is expected to be completed in June 2013. Once the review report has been tabled in parliament it will be publicly released and available on the department’s website. The Australian Government will respond to the recommendations of the review in due course.

Financial information The department’s 2012–13 operating costs for the Product Stewardship for Oil program, including staff salaries and allowances, consultancies, advertising and other related expenses, were $394 360.

The Australian Taxation Office’s operating costs for the program were $202 700. Services provided by the Australian Taxation Office include processing registrations and claims for benefits, compliance monitoring, and client liaison.

Committees The Oil Stewardship Advisory Council is established under Part 3 of the Product Stewardship (Oil) Act 2000. The council’s role is to provide advice to the Parliamentary Secretary for Sustainability and Urban Water on matters relating to the product stewardship of used oil. Members of the council are appointed on the basis of their relevant knowledge and experience, or as Australian Government representatives. Current members of the council were appointed on 4 April 2013 for a three year term (see Table 7). The council held one meeting in 2012–13, on 15 April 2013.

Table 7: Membership of the Oil Stewardship Advisory CouncilMEMBER AREA OF KNOWLEDGE OR EXPERIENCE Mr Mike Williamson Chair Broad waste management issues, from a business perspective

Mr Paul Barrett Oil production

Mr Mark Borlace National consumer issues

Ms Rebecca Brown Local Government Remote, including remote Indigenous, issues

Mr Paul Howlett Broad waste management issues, from a business perspective Non-government sector

Ms Kylie Hughes State or Territory government

Ms Jane O’Sullivan Representing the Department of Sustainability, Environment, Water, Population and Communities

Mr Bob Pullinger Used oil recycling

Ms Valerie Southam Broad waste management issues, from a business perspectiveNon-government sector

Ms Pauline Zdjelar Representing the Commissioner of Taxation

Operation of the Fuel Quality Standards Act 2000Purpose The purpose of the Fuel Quality Standards Act 2000 is to regulate the quality of fuel in Australia to:

reduce the level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems

facilitate the adoption of better engine and emission control technology and allow for more effective operation of engines

ensure that appropriate information about fuel is provided when it is supplied to the public.

The Fuel Quality Standards Regulations 2001 cover the regulation of fuel and fuel additives; the operations of the Fuel Standards Consultative Committee; the publication of notices about entries in the Register of Prohibited Fuel Additives; enforcement; record keeping and reporting obligations.

OperationFuel quality standard determinations set specific standards for petrol, automotive diesel, biodiesel and autogas. The determinations specify standards for a range of parameters, which address both environmental and operational performance. New fuel quality and fuel quality information standards for ethanol (E85) automotive fuel came into force on 1 November 2012.

The department continued development of a diesel–biodiesel blend (B20) fuel quality standard.

Compliance and enforcementThe department undertakes intelligence, monitoring, compliance and enforcement activities to detect and deal with non-compliance under the Fuel Quality Standards Act 2000 and the Fuel Quality Standards Regulations 2001.

Authorised fuel quality inspectors conduct site visits across Australia at all stages of the fuel supply chain, including importers, refineries, distributors and service station forecourts, to test fuel against the relevant standards, inspect ethanol labels and check fuel delivery documentation. The site visits program uses information provided by members of the public and industry as important intelligence for informing monitoring and enforcement activities.

Fuel samples are tested onsite for compliance with the standards and, if required, are further tested at an independent laboratory accredited by the National Association of Testing Authorities. Testing methods are accredited to international standards.

A site will be found to be non-compliant with the Act where laboratory tests indicate a fuel determination has not been met, fuel quality information is not displayed, documents are not correct or documents are not maintained.

In all cases, a breach of the Act will result in a warning letter being issued to the regulated entity requesting that the fuel no longer be supplied, fuel quality information be displayed or delivery documentation be corrected and/or maintained.

In some cases, the department may negotiate an enforceable undertaking or seek an interim or permanent injunction from the Federal Court to ensure that non compliant fuel is not further supplied.

Breaches may result in the issue of an infringement notice or prosecution. Successful prosecutions will result in a public announcement being made by the department.

The department may also disclose information to other government agencies, including state and territory consumer protection agencies and the Australian Taxation Office.

Sites found to have breached the Act will be monitored for ongoing compliance and may be the subject of additional site visits.

Table 8: Fuel sampling statistics 2011–12 and 2012–13ACTIONS 2011–12 2012–13Compliance incident reports 282 247

Site visits 1071 944

Number of compliant tests 2345 2930

Fuel quality breach 35 32

Ethanol labelling breach 47 41

Documentation requirements breach* 354 197

* The Act and Regulations require operators of service stations to keep and maintain records, including delivery documentation, stock reconciliation and fuel testing records in relation to the supply of fuel, at the premises where the fuel is supplied for two years. Fuel suppliers must also provide documentation to the supply site within 72 hours of the delivery of fuel.

Table 9: Enforcement actions 2012–13COMPANY ACTIONGas Point Guildford West Pty Ltd (operating the Gas Point Guildford West service station in Sydney)

On 5 June 2013 the Federal Court imposed a penalty of $22 500 for twice supplying diesel that did not comply with the Fuel Standard (Automotive Diesel) Determination 2001. The court also granted an injunction restraining the company from supplying diesel that does not comply with the Fuel Standard (Automotive Diesel) Determination 2001 for two years.

Freedom of informationThere were two freedom of information requests in the 2012–13 financial year.

ReportingThis section fulfils the reporting requirements of the Fuel Quality Standards Act 2000 (section 71) for the period 1 July 2012 to 30 June 2013.

Monitoring and evaluation The next statutory review of the Fuel Quality Standards Act 2000 is due to commence in the second half of 2014.

Financial informationThe department’s 2012–13 operating costs for the Fuel Quality Standards Act 2000, including staff salaries and allowances, consultancies, advertising and other related expenses, were $2 938 673.00.

Committees Section 24 of the Fuel Quality Standards Act 2000 establishes the Fuel Standards Consultative Committee as a formal consultation mechanism. Committee membership in 2012–13 is shown in Table 10.

Table 10: Membership of the Fuel Standards Consultative Committee 2012–13NAME REPRESENTING START DATE FINISH DATEPaul Barrett Fuel producers 9 July 2010 9 July 2013

David Bowman Environment non-government organisation

9 July 2010 9 July 2013

Fraser Brindley Victorian Government 2 December 2011 4 March 2013

Heather Brodie Alternative fuels industry 16 November 2009 16 November 2012

Brett Clifford Northern Territory Government 10 April 2013 10 April 2016

Ann-Louise Crotty New South Wales Government 10 September 2012 10 September 2015

James Hurnall Automotive industry 29 May 2012 29 May 2015

Bob Hyde Tasmanian Government 10 April 2013 10 April 2016

Lana Kovac Victorian Government 10 April 2013 10 April 2016

Guy Macklan Trucking industry 9 July 2010 9 July 2013

Mike McCullagh Independent fuel producers 09 July 2010 18 February 2013

Andrew McDonald Australian Government Department of Infrastructure and Transport

10 April 2013 10 April 2016

Craig Newland Consumer interests 24 August 2011 24 August 2014

Jane O’Sullivan Chair, Australian Government Department of Sustainability, Environment, Water, Population and Communities

17 October 2012 31 July 2013

David Power Australian Capital Territory Government

6 December 2012 6 December 2015

Linda Rasmussen Australian Government Department of Infrastructure and Transport

24 August 2011 18 February 2013

Samantha Read Alternative fuels industry 31 January 2013 31 January 2016

Greg Scott Northern Territory Government 13 July 2009 13 July 2012

Michael Sheldrick Australian Government Department of Resources, Energy and Tourism

13 July 2009 13 July 2012

Robin Smit Queensland Government 25 May 2012 25 May 2015

Kelvyn Steer South Australian Government 6 December 2012 6 December 2015

Peter Taylor West Australian Government 24 September 2012 24 September 2015

Stephen Woolcott Australian Government Department of Resources, Energy and Tourism

10 September 2012 10 September 2015

During 2012–13 the committee had two formal meetings, one in November 2012 and one in May 2013. The committee also considered several issues out of session.

Under section 24A the minister must consult the committee before:

granting an approval making a fuel quality standard making a fuel quality information standard deciding whether to enter a fuel additive to, or remove a fuel additive from, the Register of Prohibited

Fuel Additives preparing guidelines for more stringent fuel standards.

Under section 13 of the Fuel Quality Standards Act 2000 the committee also provides advice on applications to vary fuel standards, including recommendations on the conditions to be applied. In 2012–13 the committee

considered and made recommendations on 13 new applications and one extension of an existing approval under section 13 (see Table 11).

Table 11: Approvals granted in 2012–13 (see report glossary for terms)NAME OF APPROVAL HOLDER

PERIOD OF OPERATION

APPROVED VARIATION OF FUEL STANDARD: REFER TO THE GAZETTED GRANT OF APPROVAL FOR COMPLETE APPROVAL AND CONDITIONS

Bioworks Australia Pty Ltd 19 December 2012 to 30 June 2014

Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v

Glencore Singapore Pte. Ltd 19 December 2012 to 30 June 2014

Variation of the Fuel Standard (Automotive Diesel) Determination 2001 to allow the supply of diesel with a biodiesel content of more than 5% but no greater than 20% v/v

International Motorsport Solutions Pty Ltd

20 December 2012 to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 51.2% v/v, DIPE up to 7% v/v, MTBE up to 15% v/v and TBA up to 7% v/v

Just Fuel Petroleum Services Pty Ltd

20 December 2012 to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel (avgas) containing lead up to 0.85 g/L

Just Fuel Petroleum Services Pty Ltd

20 December 2012 to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing ethanol up to 20% v/v and oxygen up to 7% m/m in petrol containing ethanol

Netaway Pty Ltd 20 December 2012 to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist leaded racing fuel containing ethanol up to 15% v/v, lead up to 1.45 g/L, oxygen up to 10% m/m in petrol containing ethanol; and specialist unleaded racing fuel containing benzene up to 5% v/v, ethanol up to 13% v/v, oxygen up to 5% m/m in petrol containing ethanol

Northern Dynamics Pty Ltd 20 December 2012 to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist leaded racing fuel containing lead up to 2.1 g/L, MTBE up to 50.4% v/v and oxygen up to 13.9% m/m in petrol not containing ethanol

VP Racing Fuels Pty Ltd

20 December 2012 to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 55% v/v, ethanol up to 17% v/v, MTBE up to 55% v/v, olefins up to 55% v/v and oxygen up to 13% m/m in petrol not containing ethanol and up to 13% m/m in petrol containing ethanol

VP Racing Fuels Pty Ltd

20 December 2012 to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel containing lead up to 1.85 g/L, MTBE up to 55% v/v, olefins up to 60% v/v, oxygen up to 14.57% m/m in petrol not containing ethanol and up to 14.57% m/m in petrol containing ethanol, and sulfur up to 375 mg/kg

BP Australia Pty Ltd 20 December 2012 to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel (avgas), containing lead

up to 0.85 g/L

Race Fuels Pty Ltd 20 December 2012 to 31 December 2013

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of leaded racing fuel (avgas) containing lead up to 0.6 g/L and specialist leaded racing fuel containing aromatics up to 54.9% v/v, lead up to 1.65 g/L, MTBE up to 36% v/v, olefins up to 36.2% v/v, oxygen up to 18% m/m in petrol not containing ethanol

Race Fuels Pty Ltd 20 December 2012 to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 54.9% v/v, MTBE up to 36% v/v, olefins up to

36.2% v/v and oxygen up to 18% m/m in petrol not containing ethanol

ACB Group Pty Ltd 20 December 2012 to 31 December 2014

Variation of the Fuel Standard (Petrol) Determination 2001 to permit the supply of specialist unleaded racing fuel containing aromatics up to 78% v/v, ethanol up to 20% v/v and oxygen up to 7.0% m/m in petrol containing ethanol

The Shell Company of Australia Ltd

11 October 2011 to 30 June 2014

Extension of approvals, from 1 July 2012 to 30 June 2014: variation of the Fuel Standard (Automotive Diesel) Determination to allow the supply of diesel containing up to: 5% biodiesel, with a minimum DCN of 46 and a maximum density of 852 kg/m3; and more than 5% but no greater than 20% biodiesel, with a minimum DCN of 46 and a maximum density of 858 kg/m3

Operation of the Hazardous Waste (Regulation of Exports and Imports) Act 1989Purpose The purpose of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 is to regulate the export, import and transit of hazardous waste and to ensure that the waste is managed in an environmentally sound manner.

OperationIn 2012–13, 26 permits were granted and two were refused. Of the 26 permits granted, 15 were for imports and 11 were for exports. Details on each permit application and decision under the Hazardous Waste (Regulation of Exports and Imports) Act 1989 is published in the Australian Government Gazette.

Compliance and enforcementThe department continued to strengthen its enforcement activities and acted in cooperation with the Australian Customs and Border Protection Service to help prevent illegal traffic in hazardous waste. Those with information that may be helpful in stopping illegal exports can contact the department’s hazardous waste unit by calling 1800 803 772 or emailing hwa@environment.gov.au.

Administrative Appeals TribunalOne application made to the Administrative Appeals Tribunal in 2011–12 was withdrawn by the applicant in 2012–13. The application relates to the review of a decision not to grant a permit under the Hazardous Waste (Regulation of Exports and Imports) Act 1989.

ReportingThis section fulfils the reporting requirements of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 (section 61) for the period 1 July 2012 to 30 June 2013.

An annual report on the implementation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (Basel Convention) by Australia was submitted to the Secretariat of the Basel Convention during 2012–13. National reporting under the Basel Convention is on a calendar year basis. Published reports are available on the Basel Convention’s website at: www.basel.int/Countries/NationalReporting/StatusCompilations/tabid/1497/Default.aspx.

Financial information Section 32 of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 prescribes fees for the lodgement of permit applications. This year’s income from fees totalled $23 226.

CommitteesSection 58E of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 requires that the minister must establish a committee, to be known as the Hazardous Waste Technical Group, which may be called upon to advise on technical issues associated with the operation of the Act. The Hazardous Waste Technical Group met face-to-face and by teleconference twice during 2012–13 to discuss technical issues associated with the operation of the Act that required the group’s advice.

Table 12: Membership of the Hazardous Waste Technical GroupNAME APPOINTEDProfessor Paul Greenfield (Chair) 1995

Dr Peter Di Marco 1995

Mr John Hogan 1997

Ms Diane Kovacs 1995

Mr Stephen Moore 1995

Dr Peter Nadebaum 1997

Dr Neill Stacey 2000

Dr Jennifer Stauber 1997

Dr Bro Sheffield-Brotherton (Observer) -

Financial statementsInformation on the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and its operation is available at: www.environment.gov.au/settlements/chemicals/hazardous-waste.

Permit applications and decisions under the Hazardous Waste (Regulation of Exports and Imports) Act 1989 are published in the Commonwealth Gazette, available at: www.comlaw.gov.au/Browse/Results/ByPortfolio/Gazettes/Current/Sustainability,%20Environment,%20Water,%20Population%20and%20Communities/0.

Operation of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989Purpose The purpose of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 is to:

Implement the provisions of the 1985 Vienna Convention for the Protection of the Ozone Layer (Vienna Convention) and the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol).

Institute specific controls on the manufacture, import, export, distribution and use of ozone-depleting substances (ODSs).

Encourage Australian industry to replace ODSs and achieve a faster and greater reduction than is provided for in the Vienna Convention and the Montreal Protocol to the extent that is reasonably possible given the availability of suitable alternative substances and appropriate technology and devices.

Control the manufacture, import, export and use of synthetic greenhouse gases (SGGs) that are used to replace ODSs to give effect to Australia’s obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol to the United Nations Framework Convention on Climate Change (Kyoto Protocol).

Promote the responsible management of ODSs and SGGs to minimise their effect on the atmosphere. Apply an equivalent carbon price levy on imports and manufacture of SGGs listed under the Kyoto

Protocol to encourage industry and consumers to reduce emissions.

OperationLicensing The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 provides for a licensing system to enable Australia to meet its international obligations. The Act applies consistent controls on the use of ODSs, and the SGGs used to replace them, to minimise the emission of these substances to the atmosphere.

The Act also prohibits the import or manufacture of certain products, listed in Schedule 4, that contain or use a specified ODS unless the minister grants an exemption.

Five types of licences can be issued:

controlled substances licences ODSs/SGG equipment licences (EQPL) essential-uses licences used-substance licences exemptions under Section 40.

A description of each of the licence types can be found on the department’s website at: www.environment.gov.au.

There were 1241 licences active during the 2012–13 licensing period. This figure does not include one-off licences for imports of less than five items of equipment containing less than 10 kilograms of gas.

Table 13: Active licences as at 30 June 2013TYPE OF LICENCE NUMBERControlled substances hydrochlorofluorocarbons (HCFCs) 8

Controlled substances hydroflurocarbons (HFCs) 46

Controlled substances methyl bromide 8

ODSs/SGG equipment licences 1077

Used substances 3

Essential-uses 0

Section 40 exemptions 21

Quota Australia has legally binding obligations under the Montreal Protocol to phase out hydrochlorofluorocarbons (HCFCs) and the Act prescribes the quota for the quantity of controlled HCFCs that can be imported into Australia. The quota will reduce from 40 ozone-depleting potential1 (ODP) tonnes per year for 2012 and 2013 to 10 ODP tonnes per year in 2014 and 2015. From 2016 until completion of the phase-out in 2030, 2.5 ODP tonnes can be imported annually for equipment servicing.

In 2012, 464.61 ODP tonnes of bulk ODSs were imported into Australia. A further 1.95 ODP tonnes were imported in refrigeration and air-conditioning equipment.

In 2012, 13 773.36 CO2 equivalent (CO2e) kilotonnes of bulk hydrofluorocarbons were imported into Australia. A further 4067.00 CO2e kilotonnes of hydrofluorocarbons, 163.01 CO2e kilotonnes of sulfur hexafluoride and 7.64 CO2e kilotonnes of perfluorocarbons were imported into Australia in refrigeration, air-conditioning and fire protection equipment.

Revenue The Act provides for the collection of licence application fees at the levels set under the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 and import and manufacturing levies set under the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 and Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995.4

The Act also established the Ozone Protection and Synthetic Greenhouse Gas (SGG) Special Account. This allows revenue from licensing, the cost recovery component of the import and manufacture levies and the National Halon Bank to be directed towards the cost of administration, phase-out programs for ODSs, emission minimisation programs and the costs associated with the management of the National Halon Bank.

Levies on imports and manufacture under a controlled substance licence are payable each quarter and are applied according to the quantity and ozone-depleting potential of the hydrochlorofluoroccarbons (HCFCs), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexaflouride or methyl bromide imported or manufactured. Australia has not manufactured ODSs since 1996 and has never manufactured HFCs or PFCs.

Since 1 July 2012 an equivalent carbon price levy on SGGs has been applied through the legislation. The levy is to encourage industry and consumers to reduce emissions. Revenue from the levy is returned to government.

Funds received during 2012–13 from operation of the National Halon Bank and licence fees and levies are shown in Table 14.

Table 14: Ozone protection and synthetic greenhouse gases special account receiptsACTIVITY AMOUNT RECEIVED IN 2012–13 Levies $1 871 777.38

Licence fees $1 447 924.65

National Halon Bank sales and services $462 450.58

Refrigeration fees* $5 746 987.64

Penalties $31 198.73

Fire protection fees^ $76 492.82

Total $9 636 831.80

* The Australian Refrigeration Council administers the refrigeration and air-conditioning industry permit scheme and collects permit application fees on behalf of the department.^ The Fire Protection Association Australia administers the fire protection industry permit scheme and collects permit application fees on behalf of the department.

41 The difference between the two figures is that category eight benefits are not included in the second figure because they are not benefits for recycling used oil. Category eight benefits are a refund

Projects funded from the Ozone Protection and Synthetic Greenhouse Gases Account The department supports ozone research, including by the implementation of the Ozone Science Strategy. The goal is to support nationally coordinated stratospheric ozone research in Australia that contributes to a better understanding globally of ozone protection and recovery. The activities that occur under the strategy include:

supporting a group of Australian ozone scientists an annual top-up scholarship to a PhD student undertaking research that will improve our

understanding of atmospheric ozone depletion and recovery providing guidance to the Australian Government and research organisations on priorities for ozone

research and encouragement to align research priorities with Montreal Protocol priorities.

The Ozone Science Group is an informal group made up of Australian scientists and departmental representatives interested in stratospheric ozone science. Their work assists with the implementation of the Ozone Science Strategy. It comprises key Australian ozone scientists from the Australian Antarctic Division, Bureau of Meteorology, CSIRO Marine and Atmospheric Research, the Australian Radiation Protection and Nuclear Safety Agency and a number of research universities.

Product stewardship Holders of import licences under the Act are required to meet product stewardship obligations by joining an approved product stewardship scheme as a licence condition. The Refrigerant Reclaim Australia scheme requires its members to pay a levy of $2 for every kilogram of ODS or SGG refrigerant that they import. This money is used to fund the collection of used refrigerant at end-of-life and its subsequent destruction.

From 1 July 2013 the Australian Government is providing refrigerant contractors with an incentive payment of $1.50 per kilogram of waste SGGs and ODSs destroyed. This is a 50 per cent increase on the $3.00 per kilogram payment by Refrigerant Reclaim Australia for waste gas recovered and provided to Refrigerant Reclaim Australia for destruction. The Destruction Incentives Program supports the objectives of the Act.

End-use regulations The Act creates regulation making powers to allow the Australian Government to develop end-use controls on acquisition, purchase, sale, handling, use, storage and disposal of ODSs and SGGs.

End-use regulations have been implemented for the use of ODSs and SGGs in the refrigeration, air conditioning and fire protection industries. Regulations also control the use of methyl bromide as a feedstock and as a fumigant for approved critical uses and quarantine and pre-shipment uses.

End-use regulations assist Australia to meet its phase-out obligations under the Montreal Protocol. They also lead to reduced emissions of ODSs and SGGs through the establishment of minimum industry standards.

Fire protection The fire protection industry permit scheme is a competency-based permit scheme administered by the Fire Protection Association Australia (FPAA) on behalf of the Australian Government. Licences are issued to technicians who work on equipment containing controlled fire extinguishing agents; authorisations are issued to businesses that acquire, possess and dispose of controlled fire extinguishing agents; and Halon Special Permits are issued for the possession of halon for use in fire protection equipment. More information can be found on the FPAA website at: www.fpaa.com.au.

At 30 June 2013 the FPAA had issued 138 authorisations, 1407 licences and 38 Halon Special Permits.

Refrigeration and air conditioning The refrigeration and air conditioning industry permit scheme is a competency-based permit scheme. It requires technicians who work on equipment containing fluorocarbon refrigerants to hold a refrigerant handling licence; and businesses that store, possess or dispose of fluorocarbon refrigerants to hold a refrigerant trading authorisation. The scheme is administered by the Australian Refrigeration Council (ARC) on behalf of the Australian Government. More information can be found on their website at: www.arctick.org.

At 30 June 2013 the ARC had issued 17 057 refrigerant trading authorisations and 55 253 refrigerant handling licences.

Compliance and enforcement The department undertakes compliance and enforcement activities under the Act relating to the manufacture, import and export of ODSs and SGGs, including equipment containing ODSs and SGGs.

In cooperation with the Australian Customs and Border Protection Service, the department has a range of monitoring and inspection arrangements in place to ensure compliance with the Act.

The department promotes self-regulation and encourages the community to act in accordance with its administered legislation and programs through measures such as targeted communication and education activities, site inspections to view records or examine or test samples of ODSs and SGGs and provision of timely information and advice.

Where education, self-regulation or assisted self-regulation fails to achieve compliance with the Act, the department may employ a range of administrative, civil and criminal sanctions to ensure the most appropriate response to breaches of the legislation. In some cases, the department may seek an injunction from the Federal Court.

Table 15: Number of compliance and enforcement activities undertaken in 2012–13COMPLIANCE ACTIONS TOTALSite inspections undertaken 167

Warning letters sent 53

The ARC conducts a range of compliance and education audits including onsite (planned, scheduled audits), remote (paper-based), desktop (telephone-based) and educational audits. The ARC refers cases of extended non-compliance to the department for management. The ARC’s compliance and education activities during 2012–13 are shown in Table 16.

Table 16: Number of compliance and education activities undertaken by ARC in 2012–13COMPLIANCE ACTIONS TOTALARC audits (onsite and remote) undertaken 5121

Permit holders found compliant at time of ARC audit, or that demonstrated compliance as a result of education activities by the ARC

4734

The FPAA’s compliance activities have an educational focus and include site visits and awareness campaigns for industry and registered training organisations. In 2012–13, the FPAA undertook a pilot project to strengthen and streamline compliance activities. The project targeted companies that have lapsed permits or were identified as engaged in work that may deal with controlled fire extinguishing agents but do not hold a permit and aimed to raise their awareness of legislative obligations. The FPAA refers non-compliant companies and technicians to the department for appropriate enforcement action.

Financial information In 2012–13 the department paid the ARC $5 130 893.37 (GST exclusive) for the operation of the refrigeration and air conditioning industry permit scheme. The department paid the FPAA $465 738 (GST exclusive) for operating the fire protection industry permit scheme over the same period.

Montreal Protocol’s Multilateral FundAustralia provides financial assistance through the Montreal Protocol’s Multilateral Fund to assist developing countries to comply with the phase-out requirements under the protocol. In 2013 Australia was one of 14 members of the Executive Committee of the Multilateral Fund. The committee oversees governance of the funding, including considering project approvals and outcomes. Australia chaired the Executive Committee in 2011. Australia continued to participate in the Executive Committee in 2013, sharing membership with Canada.

Operation of the Water Efficiency Labelling and Standards Act 2005Purpose The Water Efficiency Labelling and Standards Act 2005 (the WELS Act) provides for the operation of a National Water Efficiency Labelling and Standards (WELS) scheme, implemented cooperatively by Australian, state and territory governments. The scheme aims to reduce the demand for water by requiring that comparative water efficiency information be provided to prospective purchasers of specified water-using products, setting mandatory minimum water efficiency standards in some instances and promoting the adoption of water-efficient technologies.

Showers, dishwashers, clothes washing machines, toilet equipment (including urinals) and taps must be registered with the scheme and display a water efficiency rating label when offered for supply. Minimum water efficiency requirements are specified for clothes washing machines and toilets. Based on analysis commissioned by the department, it is estimated that the current scheme will reduce domestic water use by more than 800 gigalitres between 2005 and 2021.

OperationThere are currently 20 663 models registered in the WELS scheme. The number of registrations has varied significantly during the year as the scheme transitioned between the previous five-year registration period and family of models provisions to the new annual registrations and changes to the definition of a model. During 2012–13, the department’s Water Information Line received more than 1098 telephone inquiries on its 1800 number regarding the WELS scheme. In addition, WELS scheme staff provided individual assistance to product manufacturers and suppliers, particularly giving guidance on product registrations, through telephone and online enquiries.

Compliance and enforcementThe department has regulatory responsibilities in respect to managing compliance with the WELS scheme. The WELS Scheme Enhancement 2012 allowed for increased powers, including the application of civil penalties, when managing issues of non-compliance. The WELS Act requires that all products be registered and labelled at all points in the supply chain.

Throughout 2012–13 there has been an increased emphasis on shifting the compliance activities towards a whole of supply chain operation to include distributors and suppliers.

In 2012–13 there were 53 compliance actions undertaken by the Regulator in conjunction with the administration of the enforceable undertakings. Actions were undertaken against retail, manufacturer and wholesale suppliers and used both site and internet inspections to determine if suppliers were complying with WELS obligations.

Overall compliance with WELS obligations is improving with a steadily growing group of suppliers integrating WELS requirements into their business processes to ensure compliance. All inspections and follow-up enforcement actions were undertaken in accordance with the department’s compliance and enforcement policy.

Reporting This section is prepared in accordance with section 75 of the WELS Act. It covers the operation of the WELS Scheme from 1 July 2012 to 30 June 2013.

The WELS website is at: www.waterrating.gov.au.

Financial information A copy of the approved WELS Scheme Cost Recovery Impact Statement is available at: www.environment.gov.au

Operation of the Water Act 2007PurposeThe Water Act 2007 provides the Commonwealth legal framework for the management of the water resources of the Murray–Darling Basin and for other matters of national interest in relation to water and water information and for related purposes.

The introduction of the Water Act 2007 responded to a need for a sustainable and integrated management approach to the water resources of the Murray–Darling Basin.

The Water Act 2007 commenced on 3 March 2008 and implemented key reforms for water management in Australia. The Water Act 2007:

Establishes the Murray–Darling Basin Authority (MDBA) with the functions and powers, including enforcement powers, needed to ensure that Basin water resources are managed in an integrated and sustainable way.

Requires the MDBA to prepare the Murray–Darling Basin Plan (the Basin Plan)—a strategic plan for the integrated and sustainable management of water resources in the Murray–Darling Basin.

Establishes a Commonwealth Environmental Water Holder (CEWH) to manage the Commonwealth’s environmental water holdings to protect and restore the environmental assets of the Murray–Darling Basin and outside the Basin where the Commonwealth holds water.

Provides the Australian Competition and Consumer Commission with a key role in developing and enforcing water charge and water market rules along the lines agreed in the National Water Initiative.

Gives the Bureau of Meteorology water information functions that are in addition to its existing functions.

OperationIn 2012–13 key measures under the Water Act 2007 were undertaken to meet the reform agenda for the Murray–Darling Basin. These measures were:

1. Basin PlanOn 22 November 2012 the Murray–Darling Basin Plan—a legislative instrument under the Water Act—was made. Based on the best available information and scientific analysis, the Basin Plan sets a long-term environmentally sustainable level of take of 10 873 gigalitres per year (GL/y) for surface water and 3324 GL/y for groundwater. For surface water this requires a 2750 gigalitre (GL) reduction from current levels of consumption. The reductions required to reach these environmentally sustainable levels of take are supported by the Commonwealth’s water recovery programs.

As required by the Water Act 2007, the core elements of the Basin Plan are:

long-term average sustainable diversion limits (SDLs) an environmental watering plan to optimise environmental outcomes for the Basin a water quality and salinity management plan requirements for the accreditation of state water resource plans a mechanism to manage critical human water needs requirements for monitoring and evaluation of the effectiveness of the Basin Plan.

The Basin Plan will ensure that Basin water resources are used and managed in a way that optimises social, economic and environmental outcomes.

2. Amendment of the Water Act 2007To assist in the implementation of Murray–Darling Basin reform, two amendments to the Water Act 2007 were also made in 2012–13.

The Water Amendment (Long-term Average Sustainable Diversion Limit Adjustment) Act 2012 (SDL Act) received royal assent on 21 November 2012. The SDL Act amended the Water Act to enable the long-term average sustainable diversion limits (SDLs) set by the Basin Plan to be adjusted within clearly defined limits without invoking the formal Basin Plan amendment process. The scope for adjustment is net plus or minus five per cent of the SDL for Basin water resources as a whole. The amendments also allowed the Basin Plan to

include in the requirements for the accreditation of water resource plans that a water resource plan includes a mechanism for incorporating and adjusting a relevant change to the SDL for that water resource plan area.

The Water Amendment (Water for the Environment Special Account) Act 2013 (Special Account Act) received royal assent on 15 February 2013. The Special Account Act amends the Water Act 2007 to establish the Water for the Environment Special Account pursuant to section 21 of the Financial Management and Accountability Act 1997. Over a 10-year period from 2014–15 the special account will fund infrastructure to acquire an additional 450 GL environmental water and remove constraints on the efficient use of environmental water in the Murray–Darling Basin.

3. Amendment of the Water RegulationsTo further assist the implementation of the Basin Plan, the Water Regulations 2008 were also amended in 2012–13.

The Water Amendment Regulation 2012 (No. 2), made 27 September 2012, further excluded certain water resources in South Australia and Victoria from the definition of ‘Basin water resources’ as these water resource areas either sit on the edge of state water planning areas or fall partially inside and partially outside the Basin Boundary. This amendment regulation also recognised the adoption by Queensland of the Water Act risk assignment framework and prescribed nine Victorian water resource plans as transitional water resource plans.

Freedom of information One Freedom of information request related to the Water Act legislative framework was received in 2012–13. This request related to the Water Amendment (Water for the Environment Special Account) Act 2013.

ReportingThe Water Act 2007 requires the Commonwealth Environmental Water Holder and the MDBA to provide annual reports to the minister.

The Water Act also requires the National Water Commission to provide a written report of audits it must conduct in relation to the Basin Plan. The first audit of the Basin Plan was provided in March 2013 and is publicly available at: www.nwc.gov.au/__data/assets/pdf_file/0007/29095/MDB-Plan-implementation-initial-report.pdf.

Financial statementThe Water Amendment (Water for the Environment Special Account) Act 2012 will appropriate $1.775 billion to the special account over a 10-year period from 2014–15 to 2023–24.

AppendicesAppendix 1: Workforce profileThe department has a diverse workforce carrying out a range of responsibilities across Australia, Australia’s external territories and Antarctica.

The department’s workforce statistics are presented in the tables on the following pages. All statistics are at 30 June 2013.

KEY TO JOB CLASSIFICATION SYMBOLS IN THE TABLES ON WORKFORCE STATISTICSSecretary Secretary of the department.

PEO Principal Executive Officer. Refers to the Director of National Parks, a statutory office holder.

SES 1–3 Senior Executive Service bands 1 to 3. Includes Chief of Division, Australian Antarctic Division.

EL 1–2 Executive Level bands 1 and 2.

APS 1–6 Australian Public Service levels 1 to 6. Includes graduate, school leaver and cadet recruits.

RS 1–3 Research Scientist (equivalent to APS 6 or EL 1) and Senior Research Scientist, Principal Research Scientist and Senior Principal Research Scientist (equivalent to EL 2).

AMP 1–2 Antarctic Medical Practitioner levels 1 and 2 (equivalent to EL 1 or EL 2).

AE 1–4 Antarctic Expeditioner bands 1 to 4 (equivalent to APS 2 to EL 2).

LO 1–3 Legal Officer (equivalent to APS 3 to 6), Senior Legal Officer (equivalent to EL 1) and Principal Legal Officer (equivalent to EL 2).

PAO 1–4 Public Affairs Officer 1 and 2 (equivalent to APS 4 to 6), Public Affairs Officer 3 (equivalent to EL 1) and Senior Public Affairs Officer (equivalent to EL 2).

Table 1: Job classification, gender, locationLOCATION GENDE

R CLASSIFICATION TOTA

LSECRETARY PEO SES 1–3 EL 1–2 APS 1–6 RS 1–3 AMP 1–2 AE 1–4 LO 1–3 PAO 1–4

ACT Female 25 414 701 21 30 1191

Male 1 1 31 324 344 1 7 7 716

Antarctica Female 2 2

Male 4 51 55

Indian Ocean Female 12 12

Male 1 29 30

Jervis Bay Female 3 9 12

Male 4 15 19

New South Wales Female 6 2 8

Male 1 1

Norfolk Island Female 3 3

Male 6 6

Northern Territory Female 1 15 119 3 138

Male 2 17 131 7 157

Queensland Female 3 3

Male 6 1 7

South Australia Female 1 1

Male 3 3

Tasmania Female 29 104 6 1 2 3 145

Male 5 47 110 32 4 198

Victoria Female 1 1 2

Male 4 4

Western Australia Female 4 3 7

Male 4 4

Total 1 1 64 883 1594 49 11 51 30 40 2724

Table 2: Full-time employees under the Public Service Act 1999NON-ONGOING ONGOING TOTAL BY GENDER TOTAL

FEMALE MALE SUBTOTAL

FEMALE MALE SUBTOTAL

FEMALE MALE

Parks Australia Division 26 24 50 115 136 251 141 160 301

Department—all other divisions 37 95 132 932 770 1702 969 865 1834

Total 63 119 182 1047 906 1953 1110 1025 2135

Table 3: Part-time employees under the Public Service Act 1999NON-ONGOING ONGOING TOTAL BY GENDER TOTAL

FEMALE MALE SUBTOTAL

FEMALE MALE SUBTOTAL

FEMALE MALE

Parks Australia Division 85 85 170 35 9 44 120 94 214

Department—all other divisions 23 13 36 271 66 337 294 79 373

Total 108 98 206 306 75 381 414 173 587

Note: These statistics do not include the Secretary or the Principal Executive Officer.

Appendix 2: Work health and safetyInformation in this appendix is provided in accordance with Schedule 2, Part 4 of the Work Health and Safety Act 2011 (WHS Act).

Health and safety management arrangementsDuring 2012–13 the department actively pursued its commitment to providing a safe and healthy workplace for all of its workers in accordance with its obligations under the WHS Act.

The department’s health and safety management arrangements outline the responsibilities of management, supervisors, employees and their representatives and provide the structural framework within which work health and safety is managed.

The departmental Health and Safety Committee met quarterly and represented the interests of all workers.

Subordinate work health and safety committees operated in Canberra and a number of other locations. The committees facilitated cooperation on WHS matters between management and workers and took an active role in the dissemination of health, safety and welfare information.

Comcare audit of the department’s safety management systemIn April 2013 Comcare conducted an audit of the department’s safety management system. Using the findings of the audit report as a basis for improvement, the department is focused on revising and implementing the safety-related policies and procedures necessary to support its health and safety management arrangements.

Incident reportingAll employees are obliged to report hazards and incidents in the workplace. Paper-based reporting has been replaced with online reporting in SAP. Hazard and incident data is provided to senior management forums and to health and safety committees as a standing agenda item for their consideration.

Return to work programWhere incidents do occur, the department assists ill and injured employees to return to work in a safe work environment. This is in accordance with the department’s fitness for duty and rehabilitation policy and guidelines.

Health and safety initiativesThe focus for 2012–13 was to ensure legislative compliance and to promote a safe and healthy workforce. The department was involved in:

implementing the WHS Act through a project plan, reported to a range of forums developing and reviewing internal policies and procedures to ensure that they are up to date and

address any new or emerging hazards supporting members of health and safety committees at all levels in their role funding influenza vaccinations for employees promoting the use of the Employee Assistance Program—a counselling service for employees and

their immediate families provided at no cost to employees using a panel of external providers to conduct workstation assessments for employees experiencing

discomfort supporting ill or injured employees and their managers when a work or non-work-related injury or

disease has affected a staff member’s attendance at work or their ability to perform in the workplace supporting health and safety representatives and first aid officers through regular meetings providing online instruction to staff about their obligations under the WHS Act providing training and information necessary to properly accredit health and safety representatives

under the new legislative regime.

Workers compensation premium

In 2012–13 the workers compensation premium rate for the department increased to 1.97 per cent. This was due to:

a revision of the 2011–12 premium from 1.63 to 1.47 per cent, reflecting the development of claims for injuries suffered in 2008, 2009 and 2010

an increase in the number of claims for injuries in 2012–13 compared to the 2011–12 reporting period the early development of 2011 claims, indicating a higher estimated lifetime cost for injuries suffered in

2011 compared to 2010 trends within other agencies an increase in the total workers compensation premium amount that Comcare needed to collect from

all Commonwealth agencies.

To address this increase, a review of 2011–12 cases was conducted to ensure active intervention in longer-term cases and early action to reduce the number and cost of claims received during the year. In addition, the department is liaising closely with Comcare to proactively manage those cases.

Notifiable incidentsUnder Schedule 1, Part 3 of the WHS Act, certain incidents must be notified to Comcare within specific time frames. The following table details the incidents that were notified in 2012–13.

Table 4: Incidents notified in 2012–13TYPE OF INCIDENT CANBERRA

WORKPLACES

PARKS AUSTRALIA

SUPERVISING SCIENTIST DIVISION

AUSTRALIAN ANTARCTIC DIVISION

Death of a person

(WHS Act section 35(a))

– 1 – –

Serious illness or injury

(WHS Act section 36)

– 4 – 1

A dangerous incident

(WHS Act section 37)

– 3 1 2

Details of noticesThere were no provisional improvement notices issued under Part 5, Division 7, section 90 of the WHS Act. There were no notices issued under Part 10, Division 1, 2 or 3 of the WHS Act.

Appendix 3: Grants programsOUTCOME 1: BIODIVERSITY AND ECOSYSTEMSSustainable management of natural resources and the environmentCaring for our Country / Natural Heritage Trust Coral Triangle InitiativeGrants to Voluntary Environment, Sustainability and Heritage Organisations.

Environmental information and researchNational Environment Research Program (NERP)Community Infrastructure GrantsAustralian Marine Mammal Centre Grants ProgramAustralian Biological Resources Study National Taxonomy Research Grant ProgramBush Blitz Strategic Taxonomy Grant Scheme.

Carbon pollution reduction—land sector initiativesBiodiversity FundIndigenous Carbon Farming FundRegional Natural Resource Management Planning for Climate Change Fund (Stream 1).

OUTCOME 2: SUSTAINABLE POPULATION AND COMMUNITIESSustainable communitiesSustainable Australia—Suburban Jobs.

OUTCOME 3: ANTARCTICAScience, policy and presenceAustralian Antarctic Science Program.

OUTCOME 4: SUSTAINABLE WATERWater reformRestoring the Balance in the Basin ProgramSustainable Rural Water Use and Infrastructure ProgramNational Urban Water and Desalination PlanNational Rainwater and Greywater Initiative National Water Security Plan for Cities and TownsGreen Precincts Water Smart Australia.

OUTCOME 5: ENVIRONMENTAL PROTECTION AND HERITAGE CONSERVATIONConservation of Australia’s heritage and environmentIndigenous Heritage ProgramNational Trusts Partnership ProgramYour Community Heritage.Environmental regulationSustainable Australia—Sustainable Regional Development.

OUTCOME 6: COMMONWEALTH ENVIRONMENTAL WATERNot applicable.

Appendix 4: Advertising and Marketing Expenditure This section is presented in accordance with the requirements of section 311A of the Commonwealth Electoral Act 1918.

During 2012–13 the department conducted two advertising campaigns: Recreational Fishers and the Water Efficiency Labelling Scheme. All other expenditure on advertising and public relations was non-campaign related.

Further information about government advertising campaigns is available on the Department of Finance and Deregulation website at: www.finance.gov.au/advertising/index.html.

Table 5: Advertising and market research expenditureADVERTISINGAgency Purpose Expenditure $ GST inclusive

2B Advertising and Design Creative advertising agency for the Recreational Fishers advertising campaign.

$3 976.40

Total $3 976.40

MARKET RESEARCHAgency Purpose Expenditure $ GST inclusive

Newspoll Omnibus Market research for the Recreational Fishers advertising campaign.

$20 068.40

Total $20 068.40

PUBLIC RELATIONSAgency Purpose Expenditure $ GST inclusive

Porter Novelli Media management of the World Indigenous Network conference.

$100 000

Total $100 000

POLLING ORGANISATIONS – NIL TO REPORT

DIRECT MAIL – NIL TO REPORTMEDIA ADVERTISINGAgency Purpose Expenditure $ GST inclusive

Adcorp Placement of non-campaign advertising in the media

$756 765.33

Universal McCann Placement of campaign advertising in the media

Recreational Fishers advertising campaign:

$203 056.82

Water Efficiency Labelling Scheme advertising: $37 708.23*

Subtotal: $204 765.05

Total $997 530.38

* While advertising for the Water Efficiency Labelling Scheme was classified as operational by the Department of Finance and Deregulation (in its determination on 4 June 2010), it falls within the scope of the Guidelines on information and advertising campaigns by Australian Government departments and agencies (March 2010) and should be listed as campaign advertising.

Appendix 5: Freedom of InformationFrom 1 May 2011 all agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish similar information to the public as part of the Information Publication Scheme (IPS). This requirement may be found in Part II of the FOI Act and replaces the former requirement to publish freedom of information in an annual report (previously a section 8 statement).

Procedures for gaining access to information The department’s agency plan, which shows what information is published in accordance with the IPS requirements, is accessible from the department’s website at: www.environment.gov.au/foi/ips.html.

Information that would previously have been found in the department’s section 8 statement is now found on the department’s website at: www.environment.gov.au/foi/index.html.

Freedom of information matters within the department are handled by the Legal section in the Policy and Communications Division. Contact details for the Freedom of Information Coordinator are:

Phone: 02 6275 9207Fax: 02 6274 2837Email: foi@environment.gov.au

Written requests for access to documents should be addressed to:

Freedom of Information Contact OfficerLegal SectionPolicy and Communications DivisionDepartment of the EnvironmentGPO Box 787Canberra ACT 2601

Appendix 6: Corrections to material errors in 2011–12 and 2010–11 annual reportsTable 1 (Consultancy services) of Appendix 5 of the 2010–11 annual report contains an error in the contract price amount (inclusive of GST) of one of the consultants listed:

The company, MA Habermehl Pty Ltd, is listed for: Provision of expert advice on water issues relating to Coal Seam Gas Projects. (Direct selection process; justification—need for independent research or assessment). Payment is shown as $77 000. The correct amount is $49 500 (GST inclusive).

Table A3 on page 279 of Appendix A: Statistics within the Operation of the Environment Protection and Biodiversity Conservation Act 1999 section of the 2011–12 annual report contains an error in the table title:

The table title shown as ‘referrals received in 2010–11’ is incorrect. The correct table title is ‘referrals received in 2011–12’.

Table A4 on page 280 of Appendix A: Statistics within the Operation of the Environment Protection and Biodiversity Conservation Act 1999 section of the 2011–12 annual report contains errors:

The table title shown as ‘referrals received in 2010–11’ is incorrect. The correct table title is ‘referrals received in 2011–12’.

The first line of the table in relation to agriculture and forestry is shown as blank for CA and 2 for PM, which is incorrect. The correct number for CA is 2 and the correct number for PM is 0.

Table A8 on page 284 of Appendix A: Statistics within the Operation of the Environment Protection and Biodiversity Conservation Act 1999 section of the 2011–12 annual report contains errors in the totals given:

The total in relation to a not controlled action—particular manner is shown as 199. The correct total for a not controlled action—particular manner is 221. The total in relation to a controlled action is shown as 221. The correct total for a controlled action is 291.

Table 6 (Summary of environmental indicators – Darwin/Jabiru (continued)) on page 324 of the 2011–12 annual report contains an error in the water consumption section for total metered potable water use (office, lab and irrigation) under Darwin’s 2011–12 result. The total metered potable water use for Darwin is stated as 3065kL but should be 10 745kL due to inaccurate meter readings that have since been corrected.

Appendix 7: Global Reporting InitiativeThe Global Reporting Initiative (GRI) was founded in 1997 and aims to fulfil the need for open, transparent communication about sustainability issues by providing a consistent and credible framework for organisations to report on their economic, environmental and social impacts.

The department is participating in a pilot of sustainability reporting using the GRI framework as a base for reporting. For the purposes of the pilot, GRI indicators have been selected for reporting based on their relevance and applicability in the context of the operations of Australian Government entities. As this is a pilot of sustainability reporting using selected GRI indicators, specific, independent assurance of reporting has not been undertaken. Further information on the GRI indicators is available at: www.globalreporting.org.

Table 6: Departmental reporting on Global Reporting Initiative indicators(G4) GRI INDICATOR GRI INDICATOR DESCRIPTION LEVEL OF

DISCLOSURE

PAGE REFERENCE

Strategy and analysis

G4-1 Statement from the most senior decision maker of the organisation about the relevance of sustainability to the organisation and its strategy.

Full 4

Organisational profile

G4-3 Name of organisation. Full Front cover

G4-4 Primary brands, products and services. Full 10

G4-5 Location of organisation’s headquarters. Full Inside cover title page

G4-6 Locations of operations. Full 163

G4-9 Scale of organisation. Full 11, 186 and 291

G4-10 Total workforce by employment type, employment contract and region, broken down by gender.

Full 163, 186 and 291

G4-11 Percentage of employees covered by collective bargaining agreements.

Partial 187

G4-13 Significant changes during the reporting period regarding size, and structure.

Partial 199 and 202

Report profile

G4-28 Reporting period of information provided. Full 9

G4-30 Reporting cycle. Full 9

G4-31 Contact point for questions regarding the report or its contents.

Full 3

Identified material aspects and boundaries

G4-18 Process for defining report content. Partial 465

G4-20 Boundary of the report. Partial* 2 and 9

G4-21 State any specific limitations on the scope or boundary of the report.

Partial* 2 and 9

Report profile: GRI content index

G4-32 Table identifying the location of the standard disclosures in report.

Full 303

Governance

G4-34 and G4-38 Governance structure of the organisation, including committees under the highest governance body.

Partial 11 and 150

G4-35 Process for delegating authority for economic, Partial 11 and 150

environmental and social topics from the highest governance body to senior executives and other employees.

G4-36 Executive level positions with responsibility for economic, environmental and social topics.

Full 11 and 150

G4-40 Process for determining composition, qualifications and expertise of highest governance body.

Partial 149–151

G4-42 Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organisation’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.

Full 149–151

G4-44 The processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics, evaluation type, frequency of performance review, and any actions taken in response to evaluation results.

Partial 149–151

G4-45 and G4-47 The highest governance body’s role in the identification and management of economic, environmental and social impacts, risks and opportunities, whether consultation was used, and the frequency of the highest governance body’s review.

Partial 149–151

G4-46 Report the highest governance body’s role in reviewing the effectiveness of the organisation’s risk management processes for economic, environmental and social topics.

Full 149–153

G4-48 Highest position that formally reviews and approves the organisation’s sustainability report and ensures that all material aspects are covered.

Partial* 11 and 150

Ethics and integrity

G4-56 Organisation’s values, principles, standards and behaviour such as codes of conduct and codes of ethics.

Full 188

G4-57 Internal and external mechanisms for seeking advice on ethical and lawful behaviour, and matters related to organisational integrity, such as help lines or advice lines.

Full 192 and 193

G4-58 Internal and external mechanisms for reporting concerns about unethical or unlawful behaviour, and matters related to organisational integrity.

Full 192 and 193

Economic

G4-EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments.

Full 319–452

G4-EC3 Coverage of an organisations’ defined benefit plan obligations.

Not reported

Human rights

G4-HR2 Total hours of employees training on policies and procedures concerning aspects of human rights that are relevant to operations, including percentage of employees trained.

Not reported

Social—practices and work

G4-LA1 Total number and rates of new employee hires and turnover by age group, gender and region.

Partial 186, 187 and 291–294

G4-LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on work, health and safety programs.

Partial 150 and 295–297

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days and absenteeism and total number of work-related fatalities by region and gender.

Partial 295–297

G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

Partial 185–191

G4-LA11 Percentage of employees receiving regular performance and career development reviews by gender and by employee category.

Partial 185–191

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership and other indicators of diversity.

Partial 150, 151, 186 and 291–294

Society

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified.

Not reported

G4-SO4 Communication and training on nti-corruption policies and procedures.

Not reported

Environmental

G4-EN1 Materials used by weight or volume. Partial 162–184

G4-EN2 Percentage of materials used that are recycled input materials.

Partial 162–184

G4-EN3 Energy consumption within the organisation. Full 162–184

G4-EN5 Organisation’s energy intensity. Full 162–184

G4-EN6 Reductions in energy consumption due to conservation and efficiency initiatives.

Partial 162–184

G4-EN8 Total water withdrawal by source. Full 162–184

G4-EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Partial 84–110

G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Partial 84–110

G4-EN13 Habitats protected or restored. Full 84–110

G4-EN15 and G4-EN16 Direct and indirect greenhouse gas emissions. Full 159–184

G4-EN17 Other indirect greenhouse gas emissions. Not reported

G4-EN18 Greenhouse gas emissions intensity. Full 159–184

G4-EN19 Reduction of greenhouse gas emissions. Full 159–184

G4-EN23 Total weight of waste by type and disposal method.

Partial 159–184

G4-EN30 Significant environmental impacts of transporting products and other goods, and transporting members of the workforce.

Partial 159–184

* Indicator is partial because material aspects are not reported on.

Appendix 8: Agency Resource Statement 2012–13    ACTUAL

AVAILABLE APPROPRIATIONFOR 2012–13

PAYMENTS MADE 2012–13

BALANCE REMAINING2012–13

$’000 $’000 $’000(a) (b) (a) - (b)

Ordinary Annual Services1

Prior year departmental appropriation 66 932 66 932 -

Departmental appropriation2 416 874 336 423 80 451

Payments to CAC Act bodies3 40 170 40 170 -

Section 31 Relevant agency receipts

100 220 100 220 -

Total 624 196 543 745 80 451

Administered expenses  

Outcome 1 – Biodiversity and Ecosystems 307 020 286 949  

Outcome 2 – Sustainable Population and Communities

11 006 10 271  

Outcome 4 – Sustainable Water 372 180 355 084  

Outcome 5 – Environmental Protection and Heritage Conservation

11 992 7246  

Outcome 6 – Commonwealth Environmental Water

24 700 24 700  

Total 726 898 684 250  

Total ordinary annual services A 1 351 094 1 227 995  

Other services4  

Administered expenses  

Specific payments to States, ACT, NT and local government

Outcome 4 – Sustainable Water 18 190 17 042  

Outcome 5 – Environmental Protection and Heritage Conservation

800 200  

Total 18 990 17 242  

Departmental non-operating

Prior years equity injections 837 837 -

Equity injections 1872 670 1202

Total 2709 1507 1202

Administered non-operating

Prior years administered Assets and Liabilities

469 620 119 117 350 503

Administered Assets and Liabilities 162 180 - 162 180

Total 631 800 119 117  

Total other services B 653 499 137 866  

Total Available Annual Appropriations and payments

2 004 593 1 365 861  

Special Accounts5  

Opening balance 449 478    

Appropriation receipts6 187 222    

Non-appropriation receipts to Special Accounts

10 738    

Payments made   194 463  

Total Special Account C 647 438 194 463 452 975

Total resourcing and payments (A+B+C) 2 652 031 1 560 324  

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations

(227 392) (227 392)  

Total net resourcing and payments for DSEWPaC

2 424 639 1 332 932  

1. Appropriation Bill (No.1) 2012–13 and Appropriation Bill (No.3) 2012–13. This may also include Prior Year departmental appropriation and S.31 relevant agency receipts.2. Includes an amount of $23.479m in 2012–13 for the Departmental Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.3. As per the Environment Protection and Biodiversity Conservation Act 1999 Section 514S, the department is directly appropriated the Director of National Parks’ (DNP) appropriations, which is then allocated to the DNP by the Secretary.4. Appropriation Bill (No.2) 2012–13 and Appropriation Bill (No.4) 2012–13.5. Does not include ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM). Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys Special accounts (SOETM).6. Appropriation receipts from DSEWPaC’s annual and special appropriations for 2012–13 included above.

Appendix 9: Expenses for outcomesEXPENSES FOR OUTCOME 1      Outcome 1: The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.

Budget* Actual Expenses Variation

2012–13 2012–13 2012–13

$’000 $’000 $’000

(a) (b) (a) - (b)

Program 1.1: Sustainable Management of Natural Resources and the Environment

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1)

90 374 90 272 102

Special Accounts 162 522 162 461 61

Expenses not requiring appropriation in the Budget year - 814 (814)

Departmental expenses

Departmental appropriation1 106 469 124 467 (17 998)3

Expenses not requiring appropriation in the Budget year

4050 3248 802

Total for Program 1.1 363 415 381 262 (17 847)

Program 1.2: Environmental Information and Research

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1)

28 616 27 948 668

Departmental expenses

Departmental appropriation1 26 470 19 024 74462

Expenses not requiring appropriation in the Budget year

1120 483 637

Total for Program 1.2 56 206 47 455 8751

Program 1.3: Carbon Pollution Reduction – Land Sector Initiatives

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 25 508 25 476 32

Departmental expenses

Departmental appropriation1 12 449 4392 80573

Expenses not requiring appropriation in the Budget year 987 231 756

Total for Program 1.3 38 944 30 099 8845

Outcome 1 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 144 498 143 696 802

Special Accounts 162 522 162 461 61

Expenses not requiring appropriation in the Budget year - 814 (814)

Departmental expenses

Departmental appropriation1 145 388 147 883 (2495)

Expenses not requiring appropriation in the Budget year 6157 3962 2195

Total expenses for Outcome 1 458 565 458 816 (251)

     

  2011–12 2012–13  

Average staffing level (number)** 513 567

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.** Represents actual average staffing level.1. Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.2. The variation is mainly due to lower expenditure in relation to Australian Biological Resources Study and the International Whale Science Initiative.3. The variation is the result of a restructure. The expenses for the Biodiversity fund have been recorded in Outcome 1.1 while the budget allocation is in Outcome 1.3.

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

Budget* Actual Expenses Variation

2012–13 2012–13 2012–13

$’000 $’000 $’000

(a) (b) (a) - (b)

Program 2.1: Management of Hazardous Wastes, Substances and Pollutants

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 2264 2262 2

Special Accounts 11 785 13 612 (1827)

Expenses not requiring appropriation in the Budget year - 395 (395)

Departmental expenses

Departmental appropriation1 48 860 50 468 (1608)

Expenses not requiring appropriation in the Budget year 2970 1820 1150

Total for Program 2.1 65 879 68 557 (2678)

Program 2.2: Sustainable Communities

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 8742 8742 -

Departmental expenses

Departmental appropriation1 4630 3950 680

Expenses not requiring appropriation in the Budget year 222 145 77

Total for Program 2.2 13 594 12 837 757

Outcome 2 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 11 006 11 004 2

Special Accounts 11 785 13 612 (1827)

Expenses not requiring appropriation in the Budget year - 395 (395)

Departmental expenses

Departmental appropriation1 53 490 54 418 (928)

Expenses not requiring appropriation in the Budget year 3192 1965 1227

Total expenses for Outcome 2 79 473 81 394 (1921)

 

  2011–12 2012–13  

Average staffing level (number)** 209 251

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.** Represents actual average staffing level.1. Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

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

Budget* Actual Expenses Variation

2012–13 2012–13 2012–13

$’000 $’000 $’000

(a) (b) (a) - (b)

Program 3.1: Antarctica: Science, Policy and Presence

Administered expenses

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

Departmental expenses

Departmental appropriation1 129 227 134 822 (5595)2

Expenses not requiring appropriation in the Budget year 53 974 50 205 3 7693

Total for Program 3.1 183 201 185 039 (1838)

Outcome 3 Totals by appropriation type

Administered expenses

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

Departmental expenses

Departmental appropriation1 129 227 134 822 (5595)

Expenses not requiring appropriation in the Budget year 53 974 50 205 3769

Total expenses for Outcome 3 183 201 185 039 (1838)

     

2011–12 2012–13  

Average staffing level (number)** 410 403

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.** Represents actual average staffing level.

1. Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.2. The variance is due to increased funding and expenses related to the whale and marine mammal research functions.3. The variance is due to the decrease in the Antarctic make good provision and base restitution liability, primarily resulting from the increase in the Australian Government Bond rate used in the long term forecast.

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

Budget* Actual Expenses Variation

2012–13 2012–13 2012–13

$’000 $’000 $’000

(a) (b) (a) - (b)

Program 4.1: Water Reform

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 365 180 244 396 120 7842

Other Services (Appropriation Bill No. 2) 18 190 17 410 780

Special Accounts 1850 3427 (1577)

Expenses not requiring appropriation in the Budget year - 343 406 (343 406)3

Departmental expenses

Departmental appropriation1 85 814 78 301 75134

Expenses not requiring appropriation in the Budget year 4766 2841 1925

Total for Program 4.1 475 800 689 781 (213 981)

Outcome 4 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 365 180 244 396 120 784

Other Services (Appropriation Bill No. 2) 18 190 17 410 780

Special Accounts 1850 3427 (1577)

Expenses not requiring appropriation in the Budget year - 343 406 (343 406)

Departmental expenses

Departmental appropriation1 85 814 78 301 7513

Expenses not requiring appropriation in the Budget year 4766 2841 1925

Total expenses for Outcome 4 475 800 689 781 (213 981)

     

  2011–12 2012–13  

Average staffing level (number)** 370 382

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.** Represents actual average staffing level.1. Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.2. The variance relates predominantly to the capitalisation of water assets in the Sustainable Rural Water Use and Infrastructure Program (SRWUIP). The capitalisation of these amounts offset the grant expenses.3. The variance relates to the water entitlement impairment charge which is an expense not requiring appropriation. There is no

budget for this item as an estimate cannot be reliably developed.4. The variance is mainly due to reduced operational activity.

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

Budget* Actual Expenses

Variation

2012–13 2012–13 2012–13

$’000 $’000 $’000

(a) (b) (a) - (b)

Program 5.1: Conservation of Australia’s Heritage and Environment

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 11 992 11 668 324

Expenses not requiring appropriation in the Budget year - 112 (112)

Departmental expenses

Departmental appropriation1 41 528 42 423 (895)

Expenses not requiring appropriation in the Budget year 2934 1817 1117

Total for Program 5.1 56 454 56 020 434

Program 5.2: Environmental Regulation

Administered expenses

Other Services (Appropriation Bill No. 2) 800 360 440

Departmental expenses

Departmental appropriation1 55 712 54 821 891

Expenses not requiring appropriation in the Budget year 4508 3522 986

Total for Program 5.2 61 020 58 703 2 317

Outcome 5 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 11 992 11 668 324

Other Services (Appropriation Bill No. 2) 800 360 440

Expenses not requiring appropriation in the Budget year - 112 (112)

Departmental expenses

Departmental appropriation1 97 240 97 244 (4)

Expenses not requiring appropriation in the Budget year 7442 5339 2103

Total expenses for Outcome 5 117 474 114 723 2 751

     

  2011–12 2012–13  

Average staffing level (number)** 591 583

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.** Represents actual average staffing level.1. Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

EXPENSES FOR OUTCOME 6      Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth environmental water

Budget* Actual Expenses Variation

2012–13 2012–13 2012–13

$’000 $’000 $’000

(a) (b) (a) - (b)

Program 6.1: Commonwealth Environmental Water

Administered expenses

Special Accounts 21 000 15 408 55922

Expenses not requiring appropriation in the Budget year - 18 (18)

Departmental expenses

Departmental appropriation1 12 672 12 124 548

Expenses not requiring appropriation in the Budget year 811 532 279

Total for Program 6.1 34 483 28 082 6401

Outcome 6 Totals by appropriation type

Administered expenses

Special Accounts 21 000 15 408 5592

Expenses not requiring appropriation in the Budget year - 18 (18)

Departmental expenses

Departmental appropriation1 12 672 12 124 548

Expenses not requiring appropriation in the Budget year 811 532 279

Total expenses for Outcome 6 34 483 28 082 6 401

     

  2011–12 2012–13  

Average staffing level (number)** 98 74

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.** Represents actual average staffing level.1. Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.2. The variation is mainly due to lower than anticipated expenditure due to unavoidable delays.

Department of Sustainability, Environment, Water, Population and Communities Financial Statementsfor the period ended 30 June 2013

Department of Sustainability, Environment, Water, Population and CommunitiesSTATEMENT BY THE SECRETARY AND CHIEF FINANCE OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2013 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

[Signed] [Signed]

Dr Paul Grimes Lily ViertmannSecretary Chief Finance Officer

29 August 2013 29 August 2013

Statement of Comprehensive Income forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2013

    2013   2012  Notes $'000   $'000EXPENSES        Employee benefits 3A 267,153   262,310Supplier 3B 213,719   258,156Grants 3C 6,480   7,914Transfer funding 3C 40,170   41,485Depreciation and amortisation 3D 46,435   42,652Finance costs 3E 13,196   16,654Write-down and impairment of assets 3F 105   593Other expenses 3G 2,378   56,556Total expenses   589,636   686,320         LESS:        OWN-SOURCE INCOME        Own-source revenue        Sale of goods and rendering of services 4A 102,494   86,137Other revenue 4B 3,917   4,211Total own-source revenue   106,411   90,348         Gains        Sale of assets 4C 220   101Reversals of previous asset write-downs and impairments 4D 33   30Other gains 4E 4,117   794Total gains   4,370   925Total own-source income   110,781   91,273         Net cost of services   478,855   595,047         Revenue from Government 4F 434,905   466,251Deficit attributable to the Australian Government   (43,950)   (128,796)         OTHER COMPREHENSIVE INCOME        Items not subject to subsequent reclassification to profit or loss        Changes in asset revaluation surplus 9B 29,393   (36,883)Total other comprehensive income   29,393   (36,883)         Total comprehensive income (loss) attributable to the Australian Government   (14,557)   (165,679)

The above schedule should be read in conjunction with the accompanying notes.

Balance Sheet forDepartment of Sustainability, Environment, Water, Population and Communitiesas at 30 June 2013

    2013   2012  Notes $'000   $'000ASSETS        Financial Assets        Cash and cash equivalents 5A 2,992   5,468Trade and other receivables 5B 96,168   78,096Other financial assets 5C 4,738   3,842Total financial assets   103,898   87,406         Non-Financial Assets        Land and buildings 6A/D 254,343   269,384Property, plant and equipment 6B/D 103,489   120,618Intangibles 6C/E 26,674   19,476Inventories 6F 8,078   7,754Other non-financial assets 6G 1,921   5,721Total non-financial assets   394,505   422,953         Total assets   498,403   510,359         LIABILITIES        Payables        Suppliers 7A 22,266   21,581Grants 7B 154   923Other payables 7C 32,891   26,599Total payables   55,311   49,103         Interest Bearing Liabilities        Leases 8A 2,623   5,052Total interest bearing liabilities   2,623   5,052         Provisions        Employee provisions 9A 65,591   70,647Other provisions 9B 406,369   427,663Total provisions   471,960   498,310         Total liabilities   529,894   552,465         Net assets 1.22 (31,491)   (42,106)         EQUITY        Contributed equity   49,659   24,308Reserves   302,223   272,674Accumulated deficit   (383,373)   (339,088)Total equity   (31,491)   (42,106)

The above schedule should be read in conjunction with the accompanying notes.

Statement of Changes in Equity forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2013

  Retained earningsAsset revaluation

surplusContributed

equity/capital Total equity  2013 2012 2013 2012 2013 2012 2013 2012  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Opening balance                Balance carried forward from previous period (339,088) (210,320) 272,674 309,557 24,308 (6,646) (42,106) 92,591Adjustment for errors (335) 28 156 - - - (179) 28Adjusted opening balance (339,423) (210,292) 272,830 309,557 24,308 (6,646) (42,285) 92,619Comprehensive income                Other comprehensive income - - 29,393 (36,883) - - 29,393 (36,883)Deficit for the period (43,950) (128,796) - - - - (43,950) (128,796)Total comprehensive income (43,950) (128,796) 29,393 (36,883) - - (14,557) (165,679)of which:                

Attributable to the Australian Government (43,950) (128,796) 29,393 (36,883) - - (14,557) (165,679)Transactions with owners                Distributions to owners                Returns of capital:                

Appropriation reductions - - - - - (496) - (496)Restructuring (Note 10A) - - - - - 392 - 392

Contributions by owners                Equity injection - Appropriations - - - - 1,872 1,545 1,872 1,545Departmental capital budget - - - - 23,479 29,513 23,479 29,513Sub-total transactions with owners - - - - 25,351 30,954 25,351 30,954Closing balance as at 30 June (383,373) (339,088) 302,223 272,674 49,659 24,308 (31,491) (42,106)Closing balance attributable to the Australian Government (383,373) (339,088) 302,223 272,674 49,659 24,308 (31,491) (42,106)

The above schedule should be read in conjunction with the accompanying notes.

Cash Flow Statement forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2013

    2013   2012  Notes $'000   $'000OPERATING ACTIVITIES        Cash received        Appropriations   519,722   556,134Sales of goods and rendering of services   101,208   88,970Grants   464   331Net GST received   15,251   14,138Other   1,709   3,089Total cash received   638,354   662,662         Cash used        Employees   264,511   247,790Suppliers   226,576   274,202Grants   7,253   7,445Transfer funding   40,170   41,485Section 31 receipts transferred to OPA   100,220   91,576Other   2,268   302Total cash used   640,998   662,800Net cash from (used by) operating activities 11 (2,644)   (138)         INVESTING ACTIVITIES        Cash received        Proceeds from sales of property, plant and equipment   255   545Total cash received   255   545         Cash used        Purchase of property, plant and equipment   17,710   26,318Purchase of intangibles   7,910   7,425Total cash used   25,620   33,743Net cash from (used by) investing activities   (25,365)   (33,198)         FINANCING ACTIVITIES        Cash received        Departmental capital budget   24,026   32,326Contributed equity   1,507   708Total cash received   25,533   33,034Net cash from (used by) financing activities   25,533   33,034         Net increase (decrease) in cash held   (2,476)   (302)Cash and cash equivalents at the beginning of the reporting period   5,468   5,770Cash and cash equivalents at the end of the reporting period 5A 2,992   5,468

The above schedule should be read in conjunction with the accompanying notes.

Schedule of Commitmentsas at 30 June 2013  2013   2012  $'000   $'000BY TYPE      Commitments receivable      

Joint activity contributions -   (1,885)Net GST recoverable on commitments (13,733)   (18,851)Other (145)   -

Total commitments receivable (13,878)   (20,736)Commitments payable      

Capital commitments1      Land and buildings 116   436Property, plant and equipment 5,773   6,519Intangibles 1,116   -Total capital commitments 7,005   6,955Other commitments      Operating leases2 149,653   159,754Project commitments3 2,488   2,540Other4 82,502   93,094Total other commitments 234,643   255,388

Total commitments payable 241,648   262,343Net commitments by type 227,770   241,607       BY MATURITY      Commitments receivable      

Other commitments receivable      One year or less (3,433)   (8,642)From one to five years (7,810)   (9,113)Over five years (2,635)   (2,981)Total other commitments receivable (13,878)   (20,736)

Total commitments receivable (13,878)   (20,736)Commitments payable      

Capital commitments      One year or less 6,303   4,052From one to five years 702   2,903Total capital commitments 7,005   6,955Operating lease commitments      One year or less 31,764   33,404From one to five years 86,353   93,722Over five years 31,536   32,628Total operating lease commitments 149,653   159,754Project commitments  One year or less 2,022   1,747From one to five years 466   793Total project commitments 2,488   2,540Other commitments      One year or less 22,806   55,094From one to five years 58,723   37,835Over five years 973   165Total other commitments 82,502   93,094

Total commitments payable 241,648   262,343Net commitments by maturity 227,770   241,607

The above schedule should be read in conjunction with the accompanying notes.

Schedule of Commitmentsas at 30 June 2013

Note: Commitments are GST inclusive where relevant.

1. Capital commitments relate to contractual payments for new assets and assets under construction.

2. Operating leases are effectively non-cancellable and include:

Nature of lease General description of leasing arrangementsLeases for office accommodation Lease payments are subject to increases in

accordance with terms as negotiated under the lease.

The Department's leases for office accommodation generally have options for renewal. Future options not yet exercised are not included as commitments.

Leases for transportation to and within the Antarctic Territory

Lease payments are subject to increases in accordance with terms as negotiated under the lease.

The transportation leases generally have options for renewal. Future options not yet exercised are not included as commitments.

Leases for support facilities for Antarctic operations Lease payments are subject to increases in accordance with terms as negotiated under the lease.

The facility leases each have options for renewal. Future options not yet exercised are not included as commitments.

3. Project commitments relate to grant amounts payable under agreements in respect of which the grantee has yet to complete the milestone required under the agreement.

4. Other commitments relate to contracts for goods and services in respect of which the contracted party has yet to provide the goods and services required under the contract.

The above schedule should be read in conjunction with the accompanying notes.

Schedule of Contingencies as at 30 June 2013

  2013   2012  $'000   $'000Contingent assets      Claims for damages or costs 5,345   3,428Total contingent assets 5,345   3,428Net contingent assets (liabilities) 5,345   3,428

Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 12, along with information on significant remote contingencies and contingencies that cannot be quantified.

The above schedule should be read in conjunction with the accompanying notes.

Administered Schedule of Comprehensive Income forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2013

    2013   2012  Notes $'000   $'000EXPENSES        Suppliers 18A 106,226   84,584Subsidies 18B -   11,025Grants 18C 516,348   717,974Depreciation and amortisation 18D 425   12Write-down and impairment of assets 18E 344,332   74,664Other expenses 18F 868   39Total expenses administered on behalf of Government   968,199   888,298         LESS:        OWN-SOURCE INCOME        Own-source revenue        Taxation revenue        Indirect tax 19A 1,991   1,369Other taxes 19B 99,819   -Total taxation revenue   101,810   1,369         Non-taxation revenue        Sale of goods and rendering of services 19C 572   839Fees and fines 19D 8,268   12,250Interest 19E 693   894Other revenue 19F 2,589   7,669Total non-taxation revenue   12,122   21,652Total own-source revenue administered on behalf of Government   113,932   23,021         Gains        Reversals of previous asset write-downs and impairments 19G 112   3,677Other gains 19H 47,722   51,595Total gains administered on behalf of Government   47,834   55,272

Total own-source income administered on behalf of Government   161,766   78,293         Net cost of services   806,433   810,005         

Deficit   (806,433)   (810,005)         OTHER COMPREHENSIVE INCOME        

Items not subject to subsequent reclassification to profit or loss        Changes in asset revaluation surplus   (6,009)   20,010Total other comprehensive income   (6,009)   20,010         

Total comprehensive loss   (812,442)   (789,995)

The above schedule should be read in conjunction with the accompanying notes.

Administered Schedule of Assets and Liabilities forDepartment of Sustainability, Environment, Water, Population and Communitiesas at 30 June 2013

    2013   2012  Notes $'000   $'000ASSETS        Financial assets        Cash and cash equivalents 20A -   -Taxation receivables 20B 22,806   -Trade and other receivables 20C 13,551   26,123Other investments 20D 561,520   570,761Total financial assets   597,877   596,884         Non-financial assets        Land 21A 1,467   1,467Property, plant and equipment 21B 506,448   492,047Intangibles 21C 1,874,779   1,942,628Inventories 21D 12,559   11,896Total non-financial assets   2,395,253   2,448,038         Total assets administered on behalf of Government   2,993,130   3,044,922         LIABILITIES        Payables        Suppliers 22A 7,166   8,715Grants 22B 23,058   33,334Total payables   30,224   42,049         Total liabilities administered on behalf of Government   30,224   42,049         Net assets   2,962,906   3,002,873

The above schedule should be read in conjunction with the accompanying notes.

Administered Reconciliation Schedule forDepartment of Sustainability, Environment, Water, Population and Communities

  2013   2012  $'000   $'000       Opening administered assets less administered liabilities as at 1 July

3,002,873   2,381,389Adjustment for errors -   45

Adjusted opening administered assets less administered liabilities 3,002,873   2,381,434Surplus (deficit) items:      

Plus: Administered income 161,766   78,293Less: Administered expenses (non CAC) (968,199)   (888,298)

Other comprehensive income:      Administered revaluations taken to/from reserves (6,009)   20,010

Administered transfers to/from Australian Government:      Appropriation transfers from OPA:      

Annual appropriations for administered expenses (non CAC) 591,890   698,292Administered asset and liabilities appropriations 119,118   542,796Special appropriations (limited) (non CAC) 205,221   238,970

Transfers to OPA (143,754)   (97,451)Restructuring -   28,827

Closing administered assets less administered liabilities as at 30 June 2,962,906   3,002,873

The above schedule should be read in conjunction with the accompanying notes.

Administered Cash Flow Statement forDepartment of Sustainability, Environment, Water, Population and Communitiesfor the period ended 30 June 2013

    2013   2012  Notes $'000   $'000         OPERATING ACTIVITIES        Cash received        Sales of goods and rendering of services   650   351Interest   741   938Indirect taxes   1,874   1,369Other taxes   77,130   -Fees and fines   8,263   12,276Net GST received   50,743   49,681Other   2,045   8,336Total cash received   141,446   72,951Cash used        Grants   683,409   824,946Subsidies paid   -   12Suppliers   110,506   88,807Other   882   39Total cash used   794,797   913,804Net cash flows from (used by) operating activities 23 (653,351)   (840,853)         INVESTING ACTIVITIES        Cash received        Repayments of advances and loans   2,118   1,923Total cash received   2,118   1,923Cash used        Purchase of intangibles   121,242   543,697CAC Act body investments   -   -Total cash used   121,242   543,697Net cash flows from (used by) investing activities   (119,124)   (541,774)         

Net increase (decrease) in Cash Held   (772,475)   (1,382,627)         Cash and cash equivalents at the beginning of the reporting period   -   20         Cash from Official Public Account for:        

- Appropriations   711,008   1,241,088- Special Accounts   205,221   238,970

    916,229   1,480,058Cash to Official Public Account for:        

- Appropriations   (120,078)   (39,889)- Special Accounts   (23,676)   (57,562)

    (143,754)   (97,451)         Cash and cash equivalents at the end of the reporting period 20A -   -

The above schedule should be read in conjunction with the accompanying notes.

Schedule of Administered Commitments as at 30 June 2013

  2013   2012  $'000   $'000BY TYPE      Commitments receivable      

Water entitlements (14,706)   (14,043)Net GST recoverable on commitments (51,796)   (73,532)

Total commitments receivable (66,502)   (87,575)       Commitments payable      

Capital commitments 1      Other 655   6,469Total capital commitments 655   6,469       Other commitments      

Project commitments 2 928,986   981,453Other 3 8,863   19,083Total other commitments 937,849   1,000,536

Total commitments payable 938,504   1,007,005Net commitments by type 872,002   919,430       BY MATURITY      Commitments receivable      

Other commitments receivable      One year or less (31,870)   (47,384)From one to five years (28,747)   (34,304)Over five years (5,885)   (5,887)Total other commitments receivable (66,502)   (87,575)

Total commitments receivable (66,502)   (87,575)       Commitments payable      

Capital commitments      One year or less 627   6,469From one to five years 19   -Over five years 9   -Total capital commitments payable 655   6,469       Project commitments      One year or less 330,179   509,905From one to five years 530,068   404,252Over five years 68,739   67,296Total project commitments payable 928,986   981,453       Other Commitments      One year or less 7,648   17,533From one to five years 1,215   1,550Total other commitments 8,863   19,083

Total commitments payable 938,504   1,007,005Net commitments by maturity 872,002   919,430

NB: Commitments are GST inclusive where relevant.

The above schedule should be read in conjunction with the accompanying notes.

Schedule of Administered Commitments as at 30 June 2013

1. Capital commitments relate to amounts payable in relation to the acquisition of water entitlements.

2. Project commitments relate to grant amounts payable under agreement in respect of which the grantee has yet to complete the milestone required under the agreement.

3. Other commitments relate to contracts for goods and services in respect of which the contracted party has yet to provide the goods and services required under the contract.

The above schedule should be read in conjunction with the accompanying notes.

Table of Contents - Notes

Note 1: Summary of Significant Accounting Policies

Note 2: Events After the Reporting Period

Note 3: Expenses

Note 4: Income

Note 5: Financial Assets

Note 6: Non-Financial Assets

Note 7: Payables

Note 8: Interest Bearing Liabilities

Note 9: Provisions

Note 10: Restructuring

Note 11: Cash Flow Reconciliation

Note 12: Contingent Assets and Liabilities

Note 13: Related Party Disclosures

Note 14: Senior Executive Remuneration

Note 15: Remuneration of Auditors

Note 16: Financial Instruments

Note 17: Financial Assets Reconciliation

Note 18: Administered – Expenses

Note 19: Administered – Income

Note 20: Administered – Financial Assets

Note 21: Administered – Non-Financial Assets

Note 22: Administered – Payables

Note 23: Administered – Cash Flow Reconciliation

Note 24: Administered – Contingent Assets and Liabilities

Note 25: Administered – Investments

Note 26: Administered – Financial Instruments

Note 27: Administered Financial Assets Reconciliation

Note 28: Appropriations

Note 29: Special Accounts

Note 30: Compensation and Debt Relief

Note 31: Reporting of Outcomes

Note 32: Cost Recovery

Note 33: Net Cash Appropriation Arrangements

Note 1: Summary of Significant Accounting Policies

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

The Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC / the Department) is an Australian Government controlled entity. It is a not-for-profit entity. The objective of the Department is to provide leadership on environment, water, heritage and sustainability matters with a national focus, or matters that are the direct responsibility of the Australian Government. The Department is also responsible for advancing Australia’s interests in the Antarctic, and supporting the Government’s sustainable population strategy.

The Department is structured to meet the following outcomes:

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

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

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

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

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

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

The continued existence of the Department in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programs.

The Department’s activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Department in its own right. Administered activities involve the management or oversight by the Department, on behalf of the Government, of items controlled or incurred by the Government.

The Department’s activities are identified under ten Programs. The relationship of Programs to Outcomes is as follows:

Outcome 1 Program 1.1: Sustainable Management of Natural Resources and the Environment Program 1.2: Environmental Information and Research Program 1.3: Carbon Pollution Reduction – Land Sector InitiativesOutcome 2 Program 2.1: Management of Hazardous Wastes, Substances and Pollutants Program 2.2: Sustainable CommunitiesOutcome 3 Program 3.1: Antarctica: Science, Policy and PresenceOutcome 4 Program 4.1: Water ReformOutcome 5 Program 5.1: Conservation of Australia’s Heritage and Environment Program 5.2: Environmental RegulationOutcome 6 Program 6.1: Commonwealth Environmental Water

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997.

The financial statements have been prepared in accordance with:

Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and

Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the Department or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the Department has made the following estimates and judgements that have the most significant impact on the amounts recorded in the financial statements:

The estimated values for the Antarctic and Sub-Antarctic related restoration obligations and related assets have been arrived at on a reasonableness basis. Further details on the valuation methodology are provided at Note 1.20.

Water entitlements are carried at cost where there is no active market. When an active market exists they are carried at fair value. Refer to Note 1.24, Water Entitlements, for further information.

No other accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

The following amending standard was issued prior to the sign-off date, was applicable to the current reporting period and had a financial impact on the Department.

AASB 2011-9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income (issued September 2011)

This Standard amends AASB 101 Presentation of Financial Statements to require entities to group together items within other comprehensive income (OCI) on the basis of whether they will eventually be reclassified to the profit or loss section. Its aim is to provide users with clarity about the nature of items presented as OCI and their future impact. It also amends the standard title of the financial statement from ‘Statement of Comprehensive Income’ to ‘Statement of Profit or Loss and Other Comprehensive Income’, although use of alternative titles is allowed.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the Department.

Future Australian Accounting Standard Requirements

The following new, revised and amending standards were issued by the Australian Accounting Standards Board prior to the sign-off date, which are expected to have a financial impact on the Department for future reporting periods.

AASB 10 Consolidated Financial Statements (issued December 2012)

AASB 10 provides a single consolidation model that identifies control as the basis for consolidation for all types of entities. This Standard replaces the consolidation requirements previously included in AASB 127 Consolidated and Separate Financial Statements. The major changes are the introduction of a broader concept of control and inclusion of detailed application guidance. The AASB has issued ED 238 Consolidated Financial Statements – Australian Implementation Guidance for Not-for-Profit Entities that proposes to explain how not-for-profit entities should apply AASB 10.

AASB 13: Fair Value Measurement (issued December 2012)

This Standard has been issued as a result of the International Accounting Standards Board (IASB)’s project to ensure consistency of fair value measurement and disclosure within financial statements. AASB 13 defines fair value, sets out a framework for measuring fair value, and requires disclosures about fair value measurements. The definition of fair value focuses on assets and liabilities because they are a primary subject of accounting measurement. However, the Standard does not specify when fair value should be applied. Guidance on when fair value measurements are to be applied is set out in other standards (e.g. AASB 116 Property, Plant and Equipment). Key features included in AASB 13 are the requirement to value non-financial assets at their highest and best use; identification of a principal (or most advantageous) market; and disclosure of all fair value measurements based on the fair value hierarchy.

AASB 119 Employee Benefits (issued September 2011)

The revised version of AASB 119 aims to improve the useability and comparability of post employment benefits. The amendments change the accounting for defined benefits plans, amend the definition of short term and long term employee benefits (such that annual leave balances not expected to be used within twelve months will require discounting) and change the timing of the recognition of termination benefits.

AASB 1055 Budgetary Reporting (issued March 2013)

The Australian Accounting Standards Board (AASB) has issued a new AASB 1055. This new Standard requires reporting of budgetary information and explanation of significant variance between actual and budgeted amounts by not-for-profit entities within the General Government Sector. The new Standard applies to reporting periods beginning on or after 1 July 2014.

AASB 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements (issued March 2013)

This Standard relocates the budgetary requirements currently in AASB 1049 Whole of Government and General Government Sector Financial Reporting into AASB 1055 to make it the complete

reference on this topic.

AASB 2012-5: Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle (AASB 1, 101, 116, 132, 134 and Interpretation 2) (issued June 2012)

This Standard makes amendments arising from the IASB’s annual improvements process. The Standard clarifies that a balance sheet as at the beginning of the comparative period only needs to be presented where it is materially affected by a retrospective change resulting from an error, changed accounting policy or reclassification. When such a balance sheet is presented, notes to that balance sheet are not necessary, except as required by AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The Standard also clarifies that spare parts, stand-by equipment and servicing equipment are accounted for as property, plant and equipment whenever they meet the definition of property, plant and equipment in AASB 116 Property, Plant and Equipment. Otherwise, such items are classified as inventory. Spare parts and servicing equipment are no longer automatically treated as property, plant and equipment because they can be used only in connection with an item of property, plant and equipment.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting period are not expected to have a future financial impact on the Department.

1.5 Principles of Consolidation (Natural Heritage Trust of Australia Account)

Subsection 43(1) of the Natural Heritage Trust of Australia Act 1997 requires financial statements to be prepared for the Natural Heritage Trust of Australia Account (NHT). Reporting by the NHT reflects the NHT as a separate reporting entity, with all transactions between the NHT and parties outside the NHT being reported.

Reporting of the NHT as part of the Department’s administered disclosure in these financial statements takes account of the treatment of administered items as a whole and the administered presentation rules as prescribed in the FMOs. The financial statements of the NHT are consolidated into the Department's administered financial statements. Where accounting policies and disclosure requirements differ between the NHT and the Department adjustments are made on consolidation to bring any dissimilar accounting policies and disclosures into alignment.

1.6 Revenue

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer;

b) the Department retains no managerial involvement or effective control over the goods;

c) the revenue and transaction costs incurred can be reliably measured; and

d) it is probable that the economic benefits associated with the transaction will flow to the Department.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b) the probable economic benefits associated with the transaction will flow to the Department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the Department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

1.7 Gains

Resources Received Free of Charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (Refer to Note 1.8).

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.8 Transactions with the Government as Owner

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other Distributions to Owners

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. In 2012-13, there were no distributions to owners. In 2011-12, by agreement with the Department of Finance and Deregulation, the Department relinquished control of surplus appropriation funding of $496,000 which was returned to the Official Public Account.

1.9 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Department is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Department’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2013. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The Department recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The Department’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap), the Australian Government Employees Superannuation Trust (AGEST) or other superannuation schemes held outside the Commonwealth.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation’s administered schedules and notes.

The Department makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The Department accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.10 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1.11 Borrowing Costs

All borrowing costs are expensed as incurred.

1.12 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand;

b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value;

c) cash held by outsiders; and

d) cash in special accounts.

1.13 Financial Assets

The Department classifies its financial assets as ‘loans and receivables’.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.14 Financial Liabilities

The Department classifies its financial liabilities as ‘other financial liabilities’. Financial liabilities are recognised and derecognised upon ‘trade date’.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.15 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.16 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.17 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than the following asset thresholds, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Asset Class Recognition ThresholdBuildings $10,000Leasehold improvements $50,000Property, plant and equipment $5,000Artworks $ Nil

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the Department where there exists an obligation to restore the property to its original condition and restitution obligations in the Antarctic where there exists an international obligation to clean-up abandoned work sites, buildings and infrastructure. These costs are included in the value of the Department’s leasehold improvements and property, plant and equipment assets with a corresponding provision for the ‘make good’ recognised.

Revaluations

Fair values for each class of asset are determined as shown below:

Asset Class Fair value measurementLand Market selling priceBuildings (excluding leasehold improvements)

Market selling price or, in the case of specialised assets, depreciated replacement cost

Leasehold improvements Depreciated replacement cost

Property, plant and equipment Market selling price or, in the case of specialised assets, depreciated replacement cost

Heritage and cultural assets Market selling price

Following initial recognition at cost, property plant and equipment assets are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Department using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2013 2012Buildings on freehold land 3 to 50 years 3 to 50 yearsLeasehold improvements Lease term Lease termProperty, plant and equipment 2 to 50 years 2 to 50 years

The Department has items of property, plant and equipment, that are heritage and cultural assets, that have limited useful lives and are depreciated.

Impairment

All assets were assessed for impairment at 30 June 2013. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Department were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

1.18 Intangibles

The Department’s intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Department’s software are 3 to 17 years (2012: 3 to 17 years).

All software assets were assessed for indications of impairment as at 30 June 2013.

1.19 Inventories

Inventories held for sale are valued at the lower of cost and net realisable value.

Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

a) raw materials and stores – purchase cost on a first-in-first-out basis;

b) fuel – weighted average cost; and

c) finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at

the date of acquisition.

1.20 Provision for Restoration Obligations

A provision for restoration obligations (make good) is recognised if, as a result of a past event, the Department has a present obligation (legal or constructive) that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Make good provisions are measured at the best estimate of the expenditure required to settle the present obligation at the reporting date, including the risks and uncertainties specific to the liabilities. Refer to Note 9B for further information.

Make good provisions are discounted to present value when the time value of money is material. Increases in present value are recognised as borrowing costs.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

Provision for Restoration Obligations - Antarctic Solid Waste Disposal Sites

Australia is a signatory to the Antarctic Treaty 1961, and Australia’s environmental responsibilities under the treaty are contained in Annex III of the Madrid Protocol. The Madrid Protocol requires past and present waste disposal sites in Antarctica be cleaned up by the generators of such wastes. Australia is required to clean up the past and present solid waste disposal sites it has generated in Antarctica. The provision for the restitution of Antarctic Solid Waste Disposal Sites is the estimated future costs of this obligation and is derived from an expert valuation which provides a “best estimate” in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets. Australia stopped disposing of its station solid waste in Antarctica in the mid 1980’s, and since then all waste has either been returned to Australia for disposal or incinerated on station. A process of gradual removal is in effect.

Provision for Restoration Obligations – Antarctic and Sub-Antarctic Regions

This provision represents the estimated future costs of making good buildings and infrastructure at Australia’s Antarctic and sub-Antarctic Stations, within Australian Territories. This provision represents the estimated future costs of decommissioning, dismantling, and expatriation to Australia of all buildings, infrastructure and associated materials and the cost of site rehabilitation. This provision is in accordance with AASB 116 Property, Plant and Equipment, which requires that the cost of an item of property, plant and equipment include an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired (or constructed) or as a consequence of having used the item during a particular period. This requirement in AASB 116 then requires a corresponding offsetting liability in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Buildings and infrastructure are decommissioned and replaced on an ongoing basis, infrequently, and the majority of costs will be incurred during any major Antarctic station rebuilding program. The provision is derived from an expert valuation and a costing model which provides a “best estimate” in accordance with AASB 137.

The estimated values for the Antarctic Solid Waste Disposal Sites, the Antarctic and Sub-Antarctic related restoration obligations and related assets have been arrived at on a reasonableness basis. These values have been calculated using a discounted cash flow methodology and therefore the value of the provisions can vary from year to year due to changes in the underlying estimated restoration costs, the assumed restoration methodologies, estimated indexation factors, discount rates at reporting date, and estimated cash flow timings. The estimate has been calculated on the assumption that each asset will be removed individually. Removal of multiple assets simultaneously may materially increase or decrease total costs depending on circumstances giving rise to their removal. The reported values as at 30 June 2013 are:

a) Restoration Obligation - Antarctic Solid Waste Disposal Sites $63,685,000

b) Restoration Obligation - Antarctic and Sub-Antarctic Stations $336,536,000

Provision for Restoration Obligations – Other Localities

This provision represents the estimated costs of making good leasehold premises occupied by the Department at the John Gorton Building, Barton ACT, the Temperate Marine Conservation Branch in Kingston Tasmania and the Jabiru Field Station NT. The provision is derived from an expert valuation which provides a “best estimate” in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

1.21 Taxation

The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

1.22 Going Concern

The Department is part of the legal entity that is the Australian Government, which is ultimately responsible for all the Department’s debts. In 2012-13, the Department’s total liabilities exceeded its total assets. This is primarily due to provisions for restoration obligations (make good) relating to Antarctica and sub-Antarctic Macquarie Island. The funding associated with the provisions will be provided at the time that the restoration work is undertaken. The existence of total liabilities in excess of total assets of the Department as reported in the balance sheet did not make the Department insolvent and has no bearing on whether the Department's debts will be met.

Australian Government Agencies have no separate legal personality but are part of the Australian Government and are ‘wound up’ only when the government decides that all their functions are to be performed by another entity or entities, or are not to be performed at all. This situation does not of itself mean that the Department is not a going concern.

1.23 Constitutional and Other Legal Requirements

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of Commonwealth programs.   In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

1.24 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the Department for use by the Government rather than the Department is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Department on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Revenue

All administered revenues are revenues relating to ordinary activities performed by the Department on behalf of the Australian Government. As such, administered appropriations are not revenues of the Department that oversees distribution or expenditure of the funds as directed.

Revenue is primarily generated from Carbon Charges, excise duties and licence fees prescribed by the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislation. The levies imposed on importers, manufacturers and exporters of synthetic greenhouse gases (SGG), SGG equipment or ozone depleting substance (ODS) equipment are determined by the type and quantity of those gases imported, manufactured or exported. Quarterly reports are required to be submitted before the 15 th day after the end of the quarter. Revenue in respect of these items is recognised on submission of the licence application or submission of the licencee report, when the quantity of the synthetic greenhouse gases imported, or

manufactured is able to be reliably measured. (Refer to Notes 19A, 19B and 19D).

Revenue also includes contributions from State and Territory governments in connection with the performance of the Water Efficiency Labelling and Standards (WELS) Regulator. The Regulator administers the WELS scheme and enforces the WELS standard that sets out the criteria for rating the water efficiency and performance of each WELS product type.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Loans and Receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through profit or loss.

Administered Investments

Administered investments in subsidiaries, joint ventures and associates are not consolidated because their consolidation is relevant only at the Whole of Government level.

Administered investments other than those held for sale are classified as available-for-sale and are measured at their fair value as at 30 June 2013. Fair value has been taken to be the Australian Government's proportional interest in the net assets of the entities as at end of reporting period. These entities include the Director of National Parks and the Sydney Harbour Federation Trust. The Director of National Parks is reliant on funding from the Government to establish and manage protected areas. The custodial obligations of the Sydney Harbour Federation Trust are consistent with those of a not-for profit entity, and whilst the Sydney Harbour Federation Trust generates non-government cash inflows the net assets valuation technique has been applied as it results in a more consistent, relevant and reliable measure of value. In accordance with Division 87 of the FMOs, the net assets valuation technique has been used to determine the fair value of the Australian Government's proportional interest in these entities as at 30 June 2013 (Refer to Note 20D).

Jointly Controlled Assets

The Australian Government is a venturer in jointly controlled assets held in the River Murray Operations (RMO) and Living Murray Initiative (LMI) joint ventures. The Australian Government has control over its share of future economic benefits through its 20% share of the jointly controlled assets (Refer to Note 21E). In respect of its interest in these jointly controlled assets, the Australian Government recognises in its financial statements its share of the jointly controlled assets, classified according to the nature of the assets, its share of any liabilities incurred in respect of the joint venture and any income from the sale or use of its share of the output of the joint venture, together with its share of any expenses incurred by the joint venture.

Clauses 3.2 and 3.3 of the “Asset Agreement for RMO Assets” state that the RMO assets are controlled jointly by the asset controlling governments for the purposes of the Murray-Darling Basin (MDB) Agreement. The asset controlling governments agree that through the MDB Agreement, they have established an unincorporated joint venture exercising joint control of assets by mutual agreement. Clauses 6.3 and 6.4 of the “Further Agreement on Addressing Water Overallocation and Achieving Environmental Objectives in the Murray-Darling Basin – Control and Management of Living Murray Assets” state that the Living Murray assets are controlled jointly by the Living Murray governments for the purposes of the Living Murray Initiative. The Living Murray governments agree that through the Living Murray Initiative, they have established an unincorporated joint venture exercising joint control of the Living Murray assets by mutual agreement.

Grants and Subsidies

The Department administers a number of grant and subsidy schemes on behalf of the Government.

Grant and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied.

Payments to CAC Act Bodies

Payments to CAC Act bodies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The appropriation to the Department

is disclosed in Table A of the appropriations note (Note 28).

National Halon Bank

In accordance with the Government’s National Halon Management Strategy, the Government operates the National Halon Bank. Halons are fire-fighting agents whose ozone depleting potential is ten times greater than that of chlorofluorocarbons. Under State and Territory legislation, the continued use of halon in non-essential equipment has been banned.

The National Halon Bank stores decommissioned halon for destruction or reclamation, and to meet Australia’s essential use needs until the year 2030 or until an alternative is found for all current uses.

There are four categories of Halon holdings:

Strategic reserve; Clean halon; and Other halon still in cylinders; and Waste halon (for destruction)

The halon stored in the National Halon Bank is a resource controlled by the Government and from which economic benefits are expected to flow to the Government. The current holdings of halon are recognised as inventory.

Water Entitlements

The Department acquires water entitlements to achieve the Government’s environmental policy objectives. Commonwealth water entitlements are held for non commercial, long term environmental purposes, beyond the shorter term weather and accounting cycles, the benefits of which are not being captured for accounting purposes. As its water entitlement holdings continue to increase so does the strategic importance of demonstrating a robust valuation assessment.

Under the Federal Financial Relations (FFR) Framework, National Partnership payments are processed centrally by the Commonwealth Treasury and paid directly to each state treasury. State treasuries are responsible for distributing the funding within their jurisdiction. In the Commonwealth, the Treasurer is accountable for the appropriations, estimates and payments under the framework. For National Partnership agreements, the primary responsibility for policy is with the relevant portfolio minister. DSEWPaC receives water entitlements ‘free of charge’ in accordance with the terms and conditions of payments made by the Treasury under the National Partnership on Water for the Future (Refer to Note 19H).

Under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP), there are a number of projects which improve the efficiency of irrigation infrastructure and generate savings in the use of water. As part of the SRWUIP funding arrangement, the Australian Government will take a share of that water saving in the form of a water entitlement for use in delivering the Government’s environmental watering objectives (Refer to Table B of Note 21C). Water acquired as a result of water savings arising from projects funded to improve the efficiency of water use are accounted for in accordance with the relevant Australian Accounting Standards.

The Department’s holdings of water entitlements are classified as indefinite life intangible assets and are therefore subject to annual impairment testing in accordance with AASB 138 Intangible Assets (AASB 138), AASB 136 Impairment of Assets (AASB 136) and the 2012-13 Finance Minister’s Orders (FMOs). Water entitlements are classified as indefinite life intangible assets as there is no foreseeable limit to the period over which the assets are expected to generate future economic benefits.

Under AASB 136, the impairment test is carried out by comparing the carrying amount (per the Department’s asset register) to the recoverable amount of the water entitlements. The recoverable amount of the water entitlements is the higher of fair value less costs to sell and value in use. The recoverable amount calculation is performed at the lowest practical level, taking into account the quality and availability of data.

The Department’s valuation methodology calculates the fair value of the water entitlements based on the best information available to reflect the amount that an entity could obtain from the disposal of the water entitlements in an arm’s length transaction between knowledgeable, willing parties. This approach is consistent with AASB 136. The Department has developed a model to assess whether there has been a significant decrease in price or whether there has been a prolonged decline in the value of the entitlement, using the median price of water entitlements extracted from State water registries. If either of these conditions is met an impairment loss is recorded. Having reviewed water entitlement price movements, the Department has determined that a decline in excess of 10 percent or a 9 months prolonged decline in the value of the

entitlement is an appropriate benchmark for this market.

In addition to generating a fair value consistent with AASB 136 as outlined above, the methodology calculates value in use or depreciated replacement cost for the water entitlements. In other words, the methodology satisfies the requirements of each of the recoverable amount calculation methods given by AASB 136.

Based on the results of the 2012-13 impairment testing, an additional impairment of $330.576m was identified on water entitlements. A further impairment of $13.389m was identified on water entitlements held in the Living Murray Initiative joint venture. Refer to Note 18E Write-Down and Impairment of Assets and Note 21C Intangibles for more details.

Constitutional and Other Legal Requirements

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of Commonwealth programs.  In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

Note 2: Events After the Reporting Period

Departmental

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Department.

Administered

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Department.

Note 3: Expenses  2013   2012  $'000   $'000Note 3A. Employee Benefits             Wages and salaries 192,950   184,064Superannuation:      

Defined contribution plans 15,738   14,763Defined benefit plans 23,813   20,246

Leave and other entitlements 27,586   42,474Separation and redundancies 7,066   763Total employee benefits 267,153   262,310

Note 3B. Supplier             Goods and services      Contractors 70,743   92,146General goods and services 33,482   53,886Information and communication technology 22,714   22,372Inventory consumed 5,191   5,275Travel 9,942   12,503Property operating expense 8,224   7,787Consultants 5,966   7,706Legal services 4,576   4,136Learning and development 3,208   3,326Total goods and services 164,046   209,137       Goods and services are made up of:      Provision of goods – external parties 22,730   24,525Rendering of services – related entities 24,844   49,768Rendering of services – external parties 116,472   134,844Total goods and services 164,046   209,137       Other supplier expenses      Operating lease rentals – external parties:      

Minimum lease payments 45,725   46,002Workers compensation expenses 3,948   3,017Total other supplier expenses 49,673   49,019Total supplier expenses 213,719   258,156

  2013   2012  $'000   $'000Note 3C. Grants and Transfer Funding             Public sector:      

Australian Government entities (related entities) 374   180State and Territory Governments 239   845

Private sector:      Non-profit organisations 1,855   2,528Profit-making entities 52   69Universities 2,009   2,239Individuals 3   2Overseas 1,948   2,051

Total grants 6,480   7,914       

Payment to the Director of National Parks 40,170   41,485Total transfer funding 40,170   41,485

Note 3D. Depreciation and Amortisation             Depreciation:      

Property, plant and equipment1 19,244   20,095Buildings 17,470   16,920Leasehold improvements 1,619   1,902

Total depreciation 38,333   38,917       Amortisation:      

Intangibles      Internally developed software 5,462   1,137Purchased software 2,640   2,598

Total amortisation 8,102   3,735Total depreciation and amortisation 46,435   42,652

1. Depreciation expenses for finance leases were included in the line ‘Property, plant and equipment’ above. Depreciation on equipment under finance lease arrangements was $3,741,000 (2012: $3,636,000).

Note 3E. Finance Costs             Finance leases 383   516Unwinding of discount 12,813   16,138Total finance costs 13,196   16,654

  2013   2012  $'000   $'000Note 3F. Write-Down and Impairment of Assets             Asset write-downs and impairments from:      

Impairment on financial instruments 98   452Impairment of property, plant and equipment 7   80Impairment on intangible assets -   61

Total write-down and impairment of assets 105   593

Note 3G. Other Expenses             Makegood provision increases 1,884   56,396Settlement of litigation 120   -Other 374   160Total other expenses 2,378   56,556

Note 4: Income  2013   2012  $'000   $'000OWN-SOURCE REVENUE             Note 4A. Sale of Goods and Rendering of Services             Rendering of services - related entities 87,885   75,339Rendering of services - external parties 14,609   10,798Total sale of goods and rendering of services 102,494   86,137

Note 4B. Other Revenue             Grants received 1,890   1,689Insurance recoveries 1,279   1,595Workers compensation received 70   17Repayment of prior years grant expenditure 182   109Other 496   801Total other revenue 3,917   4,211

GAINS             Note 4C. Sale of Assets             Property, plant and equipment:      

Proceeds from sale 112   224Carrying value of assets sold (35)   (444)       

Other (assets below recognition threshold):      Proceeds from sale 143   321

Net gain from sale of assets 220   101

Note 4D. Reversals of Previous Asset Write-Downs and Impairments             Reversal of impairment losses - financial assets 33   30Total reversals of previous asset write-downs and impairments 33   30

Note 4E. Other Gains             Makegood provision decreases 3,270   -Assets now recognised 83   8Write-down of provisions and payables 56   136Resources received free of charge 708   641Assets received free of charge -   9Total other gains 4,117   794

REVENUE FROM GOVERNMENT             Note 4F. Revenue from Government             Appropriations:      

Departmental appropriations 434,905   466,251Total revenue from Government 434,905   466,251

Note 5: Financial Assets  2013   2012

  $'000   $'000Note 5A. Cash and Cash Equivalents             Cash on hand or on deposit 2,992   5,468Total cash and cash equivalents 2,992   5,468

Note 5B. Trade and Other Receivables                 Goods and Services:        

Goods and services - related entities   5,572   4,506Goods and services - external parties   1,291   383

Total receivables for goods and services   6,863   4,889         Appropriations receivable:        

For existing programs   86,949   67,771Total appropriations receivable   86,949   67,771         Other receivables:        

GST receivable from the Australian Taxation Office   2,245   4,668Other   153   898

Total other receivables   2,398   5,566Total trade and other receivables (gross)   96,210   78,226         Less impairment allowance account:        

Goods and services   (42)   (130)Total impairment allowance account   (42)   (130)Total trade and other receivables (net)   96,168   78,096         Receivables are expected to be recovered in:        

No more than 12 months   96,168   78,096Total trade and other receivables (net)   96,168   78,096         Receivables are aged as follows:        

Not overdue   94,910   76,218Overdue by:        

0 to 30 days   972   816 31 to 60 days   221   471 61 to 90 days   33   13 More than 90 days   74   708

Total receivables (gross)   96,210   78,226         The impairment allowance account is aged as follows:        

Overdue by:        61 to 90 days   -   (10)More than 90 days   (42)   (120)

Total impairment allowance account   (42)   (130)

Credit terms for goods and services were within 30 days (2012: 30 days).

Reconciliation of the Impairment Allowance Account:             Movements in relation to 2013      

 Goods and

services   Total  $'000   $'000Opening balance (130)   (130)

Amounts written off 63   63Amounts recovered and reversed 37   37Increase/decrease recognised in net surplus (12)   (12)

Closing balance (42)   (42)       Movements in relation to 2012      

 Goods and

services   Total  $'000   $'000Opening balance (277)   (277)

Amounts written off 160   160Amounts recovered and reversed 45   45Increase/decrease recognised in net surplus (58)   (58)

Closing balance (130)   (130)

    2013   2012    $'000   $'000Note 5C. Other Financial Assets                 Accrued revenue - goods and services   4,738   3,842Total other financial assets   4,738   3,842         Total other financial assets - are expected to be recovered in:      

No more than 12 months   4,738   3,842Total other financial assets   4,738   3,842

Note 6: Non-Financial Assets  2013   2012  $'000   $'000Note 6A. Land and Buildings             Land:      

Land at fair value -   1,087Total land -   1,087       Buildings on freehold land:      

Work in progress 9,285   7,520Fair value 278,752   276,835Accumulated depreciation (48,551)   (31,256)

Total buildings on freehold land 239,486   253,099       Leasehold improvements:      

Work in progress 2,610   4,038Fair value 16,356   13,650Accumulated depreciation (4,109)   (2,490)

Total leasehold improvements 14,857   15,198       Total land and buildings 254,343   269,384

No indicators of impairment were found for land and buildings.

No land or buildings are expected to be sold or disposed of within the next 12 months.

Note 6B. Property Plant and Equipment             Other property, plant and equipment:      

Work in progress 7,462   13,346Fair value 142,950   135,357Accumulated depreciation (46,923)   (28,085)

Total other plant, property and equipment 103,489   120,618Total property, plant and equipment 103,489   120,618

Plant and equipment under finance leases were subject to revaluation. The carrying amount of $3,049,000 (2012: $6,790,000) was included in the valuation figures above.

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1. On 30 June 2011, an independent valuer conducted the revaluations.

There were no revaluation increments for land (2012: None)

There were no revaluation increments for buildings on freehold land (2012: None), leasehold improvements (2012: None) or other property, plant and equipment (2012: None)

No increments or decrements were transferred to the asset revaluation surplus by asset class and included in the equity section of the balance sheet. No decrements were expensed (2012: None).

  2013   2012  $'000   $'000Note 6C. Intangibles             Computer software:      

Internally developed – in progress 7,357   8,882Internally developed – in use 29,719   13,990Purchased - in progress 1,018   1,409Purchased - in use 14,490   13,003Accumulated amortisation (25,910)   (17,808)

Total computer software 26,674   19,476       Total intangibles 26,674   19,476

No indicators of impairment were found for intangible assets.

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 6D. Reconciliation of the Opening and Closing Balances of Land and Buildings, and Property, Plant and Equipment 2013               

  Land BuildingsLeasehold

Improvements

Total land and

buildings

Other property,

plant & equipment Total1

  $’000 $’000   $’000 $’000 $’000As at 1 July 2012            Gross book value 1,087 284,355 17,688 303,130 148,703 451,833Accumulated depreciation and impairment - (31,256) (2,490) (33,746) (28,085) (61,831)Net book value 1 July 2012 1,087 253,099 15,198 269,384 120,618 390,002             Additions:            

By purchase - 4,281 801 5,082 9,591 14,673Revaluations and impairments recognised in other comprehensive income (1,078) - - (1,078) - (1,078)Impairments recognised in the operating result - - - - (7) (7)Depreciation expense - (17,470) (1,619) (19,089) (19,244) (38,333)Other movements:            

Reclassifications (9) (424) 477 44 (7,434) (7,390)Disposals:            

Other - - - - (35) (35)Net book value 30 June 2013 - 239,486 14,857 254,343 103,489 357,832             Net book value as of 30 June 2013 represented by:            Gross book value - 288,037 18,966 307,003 150,533 457,536Accumulated depreciation and impairment - (48,551) (4,109) (52,660) (47,044) (99,704)Net book value 30 June 2013 - 239,486 14,857 254,343 103,489 357,832

1. Total equals total land and buildings (Note 6A) plus total property, plant and equipment (Note 6B).

Note 6D (Cont'd). Reconciliation of the Opening and Closing Balances of Land and Buildings, and Property, Plant and Equipment 2012             

  Land BuildingsLeasehold

Improvements

Total land and

buildings

Other property,

plant & equipment Total1

  $’000 $’000 $’000 $’000 $’000 $’000As at 1 July 2011            Gross book value 1,078 276,468 12,641 290,187 133,933 424,120Accumulated depreciation and impairment - (14,336) (606) (14,942) (8,702) (23,644)Net book value 1 July 2011 1,078 262,132 12,035 275,245 125,231 400,476             Additions:            

By purchase - 11,005 5,447 16,452 12,413 28,865Impairments recognised in the operating result - - - - (80) (80)Depreciation expense - (16,920) (1,902) (18,822) (20,095) (38,917)Other movements:            

Reclassifications 9 (3,118) (382) (3,491) 3,593 102Disposals:            

Other - - - - (444) (444)Net book value 30 June 2012 1,087 253,099 15,198 269,384 120,618 390,002             Net book value as of 30 June 2012 represented by:            Gross book value 1,087 284,355 17,688 303,130 148,703 451,833Accumulated depreciation and impairment - (31,256) (2,490) (33,746) (28,085) (61,831)Net book value 30 June 2012 1,087 253,099 15,198 269,384 120,618 390,002

1. Total equals total land and buildings (Note 6A) plus total property, plant and equipment (Note 6B).

Note 6E. Reconciliation of the Opening and Closing Balances of Intangibles 2013       

 

Computer software

internally developed

Computer software

purchased Total  $’000 $’000 $’000As at 1 July 2012      Gross book value 22,872 14,412 37,284Accumulated amortisation and impairment (9,881) (7,927) (17,808)Net book value 1 July 2012 12,991 6,485 19,476       Additions:      

By purchase or internally developed 5,743 2,167 7,910Impairments recognised in the operating result - - -Amortisation (5,462) (2,640) (8,102)Other movements:      

Reclassifications 8,461 (1,071) 7,390Net book value 30 June 2013 21,733 4,941 26,674       Net book value as of 30 June 2013 represented by:    Gross book value 37,076 15,508 52,584Accumulated amortisation and impairment (15,343) (10,567) (25,910)Net book value 30 June 2013 21,733 4,941 26,674

Note 6E (Cont'd). Reconciliation of the Opening and Closing Balances of Intangibles 2012       

 

Computer software internally

developed

Computer software

purchased Total  $’000 $’000 $’000As at 1 July 2011      Gross book value 17,050 13,404 30,454Accumulated amortisation and impairment (8,816) (5,689) (14,505)Net book value 1 July 2011 8,234 7,715 15,949Additions:      

By purchase or internally developed 5,469 1,956 7,425Impairments recognised in the operating result - (61) (61)Amortisation (1,137) (2,598) (3,735)Other movements:      

Reclassifications 425 (527) (102)Net book value 30 June 2012 12,991 6,485 19,476       Net book value as of 30 June 2012 represented by:    Gross book value 22,872 14,412 37,284Accumulated amortisation and impairment (9,881) (7,927) (17,808)Net book value 30 June 2012 12,991 6,485 19,476

  2013   2012  $'000   $'000Note 6F. Inventories             Inventories held for distribution:      

Finished goods 8,078   7,754Total inventories held for distribution 8,078   7,754

No items of inventory were recognised at fair value less cost to sell.

All inventories are expected to be distributed in the next 12 months.

Note 6G. Other Non-Financial Assets             Prepayments 1,921   5,721Total other non-financial assets 1,921   5,721       Total other non-financial assets - are expected to be recovered in:      

No more than 12 months 1,800   5,606More than 12 months 121   115

Total other non-financial assets 1,921   5,721

No indicators of impairment were found for other non-financial assets.

Note 7: Payables

  2013   2012  $'000   $'000Note 7A. Suppliers             Trade creditors and accruals 22,176   21,495Operating lease rentals 90   86Total supplier payables 22,266   21,581       Supplier payables expected to be settled within 12 months:      

Related entities 11,543   5,173External parties 10,723   16,408

Total 22,266   21,581       Total supplier payables 22,266   21,581

Settlement was usually made within 30 days.

Note 7B. Grants             Public sector:      

State and Territory Governments 23   -Private sector:      

Non-profit organisations 43   276Overseas 38   647Universities 50   -

Total grants 154   923       Total grants are expected to be settled in:      

No more than 12 months 154   923Total grants 154   923

Settlement was usually made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility.

Note 7C. Other Payables             Wages and salaries 5,337   5,711Superannuation 992   945Separations and redundancies 6,020   180Leave payable upon separation 4,087   1,464Unearned revenue 12,486   18,019Appropriations1 3,957   -Other 12   280Total other payables 32,891   26,599       Total other payables are expected to be settled in:      

No more than 12 months 32,891   26,599Total other payables 32,891   26,599

1. On 5 August 2013, the Finance Minister issued a determination that reduced departmental appropriations. The amount of the reduction under Appropriation Act (No.1) 2012-13 was $3,957,000.

Note 8: Interest Bearing Liabilities  2013   2012

  $'000   $'000Note 8A. Leases             Finance leases 2,623   5,052Total finance leases 2,623   5,052       Payable:      Within one year:      

Minimum lease payments 2,763   2,769Deduct: future finance charges (140)   (340)

In one to five years:      Minimum lease payments -   2,763Deduct: future finance charges -   (140)

Finance leases recognised on the balance sheet 2,623   5,052

In 2013, Finance leases existed in relation to certain IT equipment provided under the IT Services Agreement. The leases were non-cancellable and for fixed terms averaging 5 years, with a maximum of 10 years. The interest rate implicit in the leases averaged 8.62% (2012: 8.62%). The lease assets secure the lease liabilities. Cancellation penalties apply on early termination of the lease. There were no contingent rentals.

Note 9: Provisions

  2013   2012  $'000   $'000Note 9A. Employee Provisions             Leave 65,476   70,647Other 115   -Total employee provisions 65,591   70,647       Employee provisions are expected to be settled in:      

No more than 12 months 31,073   32,804More than 12 months 34,518   37,843

Total employee provisions 65,591   70,647

Note 9B. Other Provisions             Provision for restoration obligations - Antarctic solid waste disposal sites 63,685   65,909Provision for restoration obligations - Antarctic regions 336,536   355,248Provision for restoration obligations - other localities 5,978   6,056Other 170   450Total other provisions 406,369   427,663       Other provisions are expected to be settled in:      

No more than 12 months 3,823   4,103More than 12 months 402,546   423,560

Total other provisions 406,369   427,663

           

 

Antarctic solid

waste disposal

sitesAntarctic regions1

Other localities1 Other Total

  $’000 $’000 $’000 $’000 $’000Carrying amount 1 July 2012 65,909 355,248 6,056 450 427,663

Additional provisions made - 709 - 170 879Amounts used (794) - - (450) (1,244)Revaluation of change in discount rate1 (3,270) (30,221) (251) - (33,742)Unwinding of discount 1,840 10,800 173 - 12,813

Closing balance 30 June 2013 63,685 336,536 5,978 170 406,369

1. The revaluation decreases relating to following provisions have been taken to the asset revaluation reserve:

Provision for restoration obligations - Antarctic regions ($30,221,000) Provision for restoration obligations - other localities ($251,000)

The changes in asset revaluation surplus reported under Other Comprehensive Income also included current year asset revaluations of $1,079,000. As a result of these adjustments, the change in the asset revaluation surplus for 2013 was $29,393,000.

The Provision for restoration obligations – Antarctic regions” (Refer to Note 1.20) valuation is derived from a costing model developed by an expert valuer. Annually the valuation of provision is revised for any changes in the long term cost discount rate.

Note 10: Restructuring

Note 10A. Departmental Restructuring

  2013 2012

 Housing

Affordability

Housing Supply Policy

Housing Affordability

Housing Supply Policy

  FaHCSIA2 Treasury3 FaHCSIA2 Treasury3

           $'000 $'000 $'000 $'000FUNCTIONS RELINQUISHED        Assets recognised        

Trade and other receivables - - 916 161Total assets relinquished - - 916 161Liabilities recognised        

Suppliers - - (30) (5)Employee provisions - - (1,122) (312)

Total liabilities relinquished - - (1,152) (317)Net assets/(liabilities) relinquished4 - - (236) (156)

1. The Department was not impacted by any restructuring of administrative arrangements during 2013.

2. The Housing Affordability function was relinquished to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) during 2012 due to a restructuring of administrative arrangements on 14 December 2011.

3. The Housing Supply Policy function was relinquished to the Department of the Treasury (Treasury) during 2012 due to a restructuring of administrative arrangements on 14 December 2011.

4. The net liabilities relinquished to all entities were $392,000.

Note 10B. Administered Restructuring           2013 2012

 Housing

AffordabilityHousing

Affordability

  FaHCSIA2 FaHCSIA2

  $'000 $'000FUNCTIONS RELINQUISHED    Liabilities relinquished    

Subsidies - (14,896)Grants - (13,931)

Total liabilities relinquished - (28,827)Net assets/(liabilities) relinquished3 - (28,827)

1. The Department was not impacted by any restructuring of administrative arrangements during 2013.

2. The Housing Affordability function was relinquished to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) during 2012 due to a restructuring of administrative arrangements on 14 December 2011.

3. The net liabilities relinquished to all entities were $28,827,000.

Note 11: Cash Flow Reconciliation  2013   2012  $'000   $'000Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement             Cash and cash equivalents as per:      

Cash flow statement 2,992   5,468Balance sheet 2,992   5,468

Difference -   -       Reconciliation of net cost of services to net cash from operating activities:    

Net cost of services (478,855)   (595,047)Add revenue from Government 434,905   466,251

       Adjustments for non-cash items      

Adjustments made directly to balance sheet1 30,983   (41,214)Other income not providing cash (303)   (17)Depreciation / amortisation 46,435   42,652Net write down of non-financial assets 7   141Net (gains) / loss from sale of assets -   (101)

       Changes in assets / liabilities      

(Increase) / decrease in net receivables (18,254)   659(Increase) / decrease in accrued revenue (896)   967(Increase) / decrease in prepayments 3,800   (1,552)(Increase) / decrease in inventories (324)   (1,495)Increase / (decrease) in employee provisions (5,056)   13,704Increase / (decrease) in supplier payables 685   2,555Increase / (decrease) in other provisions (21,294)   114,694Increase / (decrease) in other payables 6,292   (2,804)Increase / (decrease) in grant liabilities (769)   469

Net cash from (used by) operating activities (2,644)   (138)              1. Balance sheet movements not related to operating activities:      Refer to the Statement of Changes in Equity:      

Adjustment for errors (145)   28Revaluation (increment) / decrement - make good provision 30,471   (36,883)Appropriation reductions -   (496)Restructuring -   392

Movements relating to investing activities:      Accrued asset purchases 1,365   1,754Additional make good provisions made (708)   (6,009)

Total adjustments made directly to balance sheet 30,983   (41,214)

Note 12: Contingent Assets and Liabilities

 Claims for damages or

costsTotal

  2013 2012 2013 2012  $'000 $'000 $'000 $'000Contingent assets        

Balance from previous period 3,428 4,214 3,428 4,214New contingent assets recognised 2,962 1,187 2,962 1,187Re-measurement (41) (462) (41) (462)Assets recognised (1,004) (1,511) (1,004) (1,511)

Total contingent assets 5,345 3,428 5,345 3,428         Net contingent assets (liabilities)     5,345 3,428

Quantifiable Contingencies

The Schedule of Contingencies contains $5,345,000 of contingent assets in respect to claims for damages or costs (2012: $3,428,000). The amount represents losses arising from events insured by the Australian Antarctic Division and insurance claims which are still pending as at 30 June 2013.

Unquantifiable Contingencies

At 30 June 2013, the Department carried one instance of an unquantifiable contingent liability (2012: One). It was not possible to estimate the amounts of any eventual payments that may be required in relation to this contingency.

Significant Remote Contingencies

The Department has entered into an arrangement with CIT Aerospace to guarantee Skytraders Pty Ltd financial performance of the A319 Airlink lease. The liability under the guarantee is capped at US$500 million; however this amount is then matched by the insurance obligations under the lease. The net effect is nil (2012: Nil).

Note 13: Related Party Disclosures

Loans to Key Management Personnel or Key Management Personnel-Related Entities

In 2013, no loans were made to key management personnel or key management personnel-related entities (2012: Nil).

Other Transactions with Key Management Personnel or Key Management Personnel-Related Entities

In 2013, no grants were made to key management personnel or key management personnel-related entities (2012: Nil).

Note 14: Senior Executive Remuneration

Note 14A. Senior Executive Remuneration Expenses for the Reporting Period         2013   2012  $   $Short-term employee benefits:      

Salary 11,776,301   11,141,532Annual leave accrued 1,252,867   1,108,717Motor vehicle and other allowances 514,260   354,377

Total short-term employee benefits 13,543,428   12,604,626       Post-employment benefits:      

Superannuation 2,593,729   3,125,936Total post-employment benefits 2,593,729   3,125,936       Other long-term employee benefits:      

Long-service leave5, 6 50,523   1,471,774Total other long-term employee benefits 50,523   1,471,774       Total senior executive remuneration expenses 16,187,680   17,202,336

1. Note 14A is prepared on an accrual basis.

2. Note 14A excludes acting arrangements and part-year service where total remuneration expensed as a senior executive was less than $180,000 ($180,000 is the threshold for 2013). The comparative (2012) figures have been restated to reflect the change in this threshold as per the Finance Minister’s Orders, in 2012 the threshold was $150,000.

3. No senior executive on secondment to another agency is included in the above table (2012: One).

4. Five senior executives on secondment to other agencies are excluded from the above table as the total remuneration expensed was less than $180,000 (2012: Two).

5. The comparative (2012 Long-service leave) has been restated from what was reported in the 2011-12 Financial Statements ($647,618). This was due to a disclosure error that was made at the time that the statements were prepared. The disclosure error of $825,951 related to a change in the long service leave discount rate from 90% in 2010-11 to 109.5% in 2011-12.

6. The significant decrease in long-service leave expense is the result of:

(a) A reduction in the discount rate used to calculate the present value of long-term leave benefits. The reduced discount factor of 97.8% (2012: 109.5%) is the result of increases in the 10 Year Australian Government Bond rate between 30 June 2012 and 30 June 2013, and

(b) A reduced on-cost rate of 10% (2012: 12%). The on-cost rate used to reflect the value of superannuation, long service leave and recreation leave that continues to accrue when an employee takes leave.

The impact of these in 2013 and similar adjustments that occurred in 2012 is as follows:

  2013   2012  $   $        Accrued leave entitlements for the period  614,183    645,823 Discount factor adjustments (437,903)   825,951 On-cost rate adjustments (125,757)   - Total long-service leave 50,523   1,471,774

Note 14B. Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period           Average annual reportable remuneration paid to substantive senior executives in 2013

Average annual reportable remuneration1

Substantive senior

executivesReportable

salary2Contributed

superannuation3Reportable

allowances4Total reportable

remuneration  No. $ $ $ $Total reportable remuneration (including part-time arrangements):          

Less than $180,000 13 94,037 17,921 - 111,958$180,000 to $209,999 6 167,127 33,330 - 200,457$210,000 to $239,999 24 187,595 35,388 - 222,983$240,000 to $269,999 9 212,318 36,689 - 249,007$270,000 to $299,999 9 231,480 54,894 - 286,374$300,000 to $329,999 5 257,944 54,054 - 311,998$360,000 to $389,999 2 310,170 57,349 - 367,519$390,000 to $419,999 1 341,365 73,972 - 415,337$600,000 to $629,999 1 521,051 79,779 - 600,830

Total number of substantive senior executives 70        

1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following:(a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);(b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes);(c) exempt foreign employment income; and(d) salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the entity for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

Note 14B (Cont'd). Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period           Average annual reportable remuneration paid to substantive senior executives in 2012

Average annual reportable remuneration1

Substantive senior

executivesReportable

salary2Contributed

superannuation3Reportable

allowances4Total reportable

remuneration  No. $ $ $ $Total reportable remuneration (including part-time arrangements):          

Less than $180,000 33 90,565 14,035 - 104,600$180,000 to $209,999 8 175,649 27,747 - 203,396$210,000 to $239,999 18 188,164 38,850 - 227,014$240,000 to $269,999 7 213,436 41,150 90 254,676$270,000 to $299,999 8 227,387 58,215 - 285,602$300,000 to $329,999 2 216,272 91,614 - 307,886$330,000 to $359,999 1 274,591 65,395 - 339,986$360,000 to $389,999 1 226,237 140,288 - 366,525$390,000 to $419,999 3 268,426 126,911 - 395,337$450,000 to $479,999 1 170,251 286,228 - 456,479$510,000 to $539,999 1 452,411 62,956 - 515,367

Total number of substantive senior executives 83        

1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following:(a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);(b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes);(c) exempt foreign employment income; and(d) salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the entity for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

Note 14C. Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period             Average annual reportable remuneration paid to other highly paid staff in 2013

Average annual reportable remuneration1

Other highly

paid staff Reportable salary2

Contributed superannuation3

Reportable allowances4

Total reportable remuneration

  No. $ $ $ $Total reportable remuneration (including part time arrangements):          

$180,000 to $209,999 21 154,515 39,828 - 194,343$210,000 to $239,999 7 179,440 41,351 - 220,791$240,000 to $269,999 4 219,107 30,334 - 249,441

Total number of other highly paid staff 32        

1. This table reports staff: (a) who were employed by the entity during the reporting period; (b) whose reportable remuneration was $180,000 or more for the reporting period; and (c) were not required to be disclosed in Table B. Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following: (a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); (b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes); (c) exempt foreign employment income; and (d) salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the entity for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

Note 14C (Cont'd). Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period             Average annual reportable remuneration paid to other highly paid staff in 2012

Average annual reportable remuneration1

Other highly

paid staff Reportable salary2

Contributed superannuation3

Reportable allowances4

Total reportable remuneration

  No. $ $ $ $Total reportable remuneration (including part time arrangements):          

$180,000 to $209,999 10 155,588 33,915 - 189,503$210,000 to $239,999 3 193,687 31,157 - 224,844$240,000 to $269,999 2 222,022 23,569 - 245,591$270,000 to $299,999 1 242,371 31,363 - 273,734$390,000 to $419,999 1 211,732 199,358 - 411,090

Total number of other highly paid staff 17        

1. This table reports staff: (a) who were employed by the entity during the reporting period; (b) whose reportable remuneration was $180,000 or more for the reporting period; and (c) were not required to be disclosed in Table B. Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following: (a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); (b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes); (c) exempt foreign employment income; and (d) salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the entity for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

Note 15: Remuneration of Auditors

  2013   2012  $'000   $'000Financial statement audit services were provided free of charge to the Department by the Australian National Audit Office (ANAO).             Fair value of the services provided      

Financial statement audit services 505   490Total 505   490

No other services were provided by the auditors of the financial statements.

Note 16: Financial Instruments

  2013   2012  $'000   $'000Note 16A. Categories of Financial Instruments             Financial Assets      Loans and receivables:      

Cash on hand or on deposit 2,992   5,468Goods and services receivables 6,821   4,759Other receivables 153   898Accrued revenue - goods and services 4,738   3,842

Total 14,704   14,967Carrying amount of financial assets 14,704   14,967       Financial Liabilities      At amortised cost:      

Suppliers payable 22,266   21,581Grants payable 154   923Other payables 12   280Finance leases 2,623   5,052

Total 25,055   27,836Carrying amount of financial liabilities 25,055   27,836

Note 16B. Net Income and Expense from Financial Assets             Loans and receivables      

Reversal of impairment losses 33   30Impairment (98)   (452)

Net gain/(loss) from loans and receivables (65)   (422)       Net gain/(loss) from financial assets (65)   (422)

Note 16C. Net Income and Expense from Financial Liabilities             Financial liabilities - at amortised cost      

Write-downs of provisions and payables 56   136Net gain/(loss) from financial liabilities - at amortised cost 56   136       Net gain/(loss) from financial liabilities 56   136

Note 16D. Fair Value of Financial Instruments                 The fair value of all financial assets and liabilities approximate their carrying amounts.           

Note 16E. Credit Risk                     The Department was exposed to minimal credit risk as loans and receivables were cash and trade receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of trade receivables (2013: $7,016,000 and 2012: $5,787,000).

The Department had assessed the risk of the default on payment and had allocated $42,000 in 2013 (2012: $130,000) to an impairment allowance account. The Department managed its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Department had policies and procedures that guided employees in debt recovery techniques that were to be applied.

The Department held no collateral to mitigate against credit risk.

The following table illustrates the Department's gross exposure to credit risk, excluding any collateral or credit enhancements.        2013 2012        $'000 $'000Financial assets          Loans and receivables          

Cash on hand or on deposit       2,992 5,468Goods and services receivables       6,821 4,759Other receivables       153 898Accrued revenue - goods and services       4,738 3,842

Total       14,704 14,967           Credit quality of financial instruments not past due or individually determined as impaired  

   

Not past due nor

impaired

Not past due nor

impaired

Past due or

impaired

Past due or

impaired    2013 2012 2013 2012    $'000 $'000 $'000 $'000Loans and receivables          

Cash on hand or on deposit   2,992 5,468 - -Goods and services receivables   5,563 2,881 1,258 1,878Other receivables   153 898 - -Accrued revenue - goods and services   4,738 3,842 - -

Total   13,446 13,089 1,258 1,878           Ageing of financial assets that were past due but not impaired for 2013      0 to 30 31 to 60 61 to 90 90+    days days days days Total  $'000 $'000 $'000 $'000 $'000Loans and receivables          

Goods and services and other receivables 972 221 33 32 1,258Total 972 221 33 32 1,258           Ageing of financial assets that were past due but not impaired for 2012        0 to 30 31 to 60 61 to 90 90+    days days days days Total  $'000 $'000 $'000 $'000 $'000Loans and receivables          

Goods and services and other receivables 816 471 3 588 1,878Total 816 471 3 588 1,878

Note 16F. Liquidity Risk            The Department’s financial liabilities were trade creditors, grant payables and finance leases. The exposure to liquidity risk was based on the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities.

This was highly unlikely as the Department is appropriated funding from the Australian Government and the Department manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Department has policies in place to ensure timely payments are made when due and has no past experience of default.

The following tables illustrate the maturities for financial liabilities.

             Maturities for non-derivative financial liabilities 2013          On Within 1 1 to 2 2 to 5 > 5    demand year years years years Total  $'000 $'000 $'000 $'000 $'000 $'000Other liabilities            Suppliers payable - 22,266 - - - 22,266Grants payable - 154 - - - 154Other payables including lease incentives - 12 - - - 12Finance lease - 2,623 - - - 2,623Total - 25,055 - - - 25,055             Maturities for non-derivative financial liabilities 2012          On Within 1 1 to 2 2 to 5 > 5    demand year years years years Total  $'000 $'000 $'000 $'000 $'000 $'000Other liabilities            Suppliers payable - 21,581 - - - 21,581Grants payable - 923 - - - 923Other payables including lease incentives - 280 - - - 280Finance lease - 2,429 2,366 257 - 5,052Total - 25,213 2,366 257 - 27,836

The Department had no derivative financial liabilities in either 2013 or 2012.

Note 16G. Market Risk             The Department held basic financial instruments that did not expose the Department to certain market risks, such as 'Currency risk' and 'Other price risk'.

The only interest-bearing item on the balance sheet was 'Finance leases'. Finance leases bear interest at a fixed interest rate and their values did not fluctuate due to changes in the market interest rate.

       

Note 17: Financial Assets Reconciliation

    2013   2012    $'000   $'000Financial assets Notes               Total financial assets as per balance sheet   103,898   87,406Less: non-financial instrument components        

Appropriation receivables   86,949   67,771GST receivable from the ATO   2,245   4,668

Total non-financial instrument components   89,194   72,439Total financial assets as per financial instruments note 16A 14,704   14,967

Note 18: Administered – Expenses

  2013   2012  $'000   $'000Note 18A. Suppliers             Goods and services      

NHT implementation costs1 42,100   39,954General goods and services 37,539   15,474Statutory fees and charges2 13,511   8,122Contractors 8,403   14,358Consultants 3,927   5,081Legal services 554   1,513Travel 192   82Total goods and services 106,226   84,584       Goods and services are made up of:      Provision of goods – related entities 62   150Provision of goods – external parties 234   224Rendering of services – related entities 80,299   59,358Rendering of services – external parties 25,631   24,852Total goods and services 106,226   84,584       

Total supplier expenses 106,226   84,584

1. Represents funding provided to the Department of Sustainability, Environment, Water, Population and Communities and the Department of Agriculture, Fisheries and Forestry to cover costs associated with implementing the Natural Heritage Trust of Australia’s (NHT) activities.

2. Annual fees and water delivery charges associated with the management of the Commonwealth Environmental Water Holdings.

Note 18B. Subsidies             Payable to external parties:      

National Rental Affordability Scheme -   11,025Total subsidies -   11,025

  2013   2012  $'000   $'000Note 18C. Grants             Public sector:      

Australian Government entities (related entities) 6,447   13,511State and Territory Governments 90,214   206,899Local Governments 79,720   144,271

Private sector:      Non-profit organisations 184,157   255,072Profit-making entities 131,164   71,130Individuals 5,005   5,804Universities 19,301   20,929Overseas 340   358

Total grants 516,348   717,974       The grants relate to the following programs      Sustainable Rural Water Use and Infrastructure Program 140,534   191,767Caring for Our Country 115,888   141,665National Urban Water and Desalination Plan 64,244   88,865Working on Country 56,687   51,958National Water Security Plan for Cities and Towns 26,758   61,105Tasmanian Forests Agreement - Implementation Package 20,280   -Biodiversity Fund 19,952   31,192Commonwealth Environment Research Facilities 17,878   16,796Environmental Stewardship Program 11,034   13,245Suburban Jobs 8,742   -Water Smart Australia 7,726   23,916Community Infrastructure Grants 4,782   2,650Community Heritage Program 4,241   3,385Regional NRM Planning for Climate Change 3,744   -Indigenous Heritage Program 3,526   3,645Protecting and Conserving Historic Built Assets 2,909   4,654Australian Biological Resources Study Participatory Program 1,795   1,811International Whale Science Initiative 1,709   1,628National Wildlife Corridor Plan 1,575   -National Trusts Partnership Program 912   927Indigenous Carbon Farming Fund 900   -Other Grants 532   370Housing Affordability Fund -   68,215Murray Environmental Flows -   7,500Green Precincts -   2,434National Rainwater and Greywater Initiative -   246Total grants 516,348   717,974

  2013   2012  $'000   $'000Note 18D. Depreciation and Amortisation             Depreciation:      

Property plant and equipment 12   12Total depreciation 12   12       Amortisation:      

Intangibles 413   -Total amortisation 413   -Total depreciation and amortisation 425   12

Note 18E. Write-Down and Impairment of Assets             Asset write-downs and impairments from:      

Impairment on financial instruments 926   402Impairment on intangible assets1 343,406   74,262

Total write-down and impairment of assets 344,332   74,664

1. The impairment on water assets is consistent with changes in market prices since the time of acquisition, as evidenced by State Government water trading registers and observed prices for Australian Government acquisitions over time. Refer to Note 1.24, Water Entitlements for further information.

During 2013, impairment on intangible assets includes impairment on water assets held by the Living Murray Initiative of $12,829,800 (2012: $11,799,000) (Refer to Note 21E).

Note 18F. Other Expenses             Other 868   39Total other expenses 868   39

Note 19: Administered – Income

  2013   2012  $'000   $'000OWN-SOURCE REVENUE             Taxation Revenue             Note 19A. Indirect Tax             

Excise duty1 1,991   1,369Total indirect tax 1,991   1,369

1. Import and manufacturing excises collected under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislative instruments.

Note 19B. Other Taxes             

Carbon charge1 99,683   -Other2 136   -Total other taxes 99,819   -

1. Equivalent carbon price collected under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislative instruments.

2. Penalties collected on the late payment of carbon charges and excises due under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislative instruments.

Non-Taxation Revenue             Note 19C. Sale of Goods and Rendering of Services             Provision of goods - external parties 148   267Rendering of services - related entities 35   216Rendering of services - external parties 389   356Total sale of goods and rendering of services 572   839

Note 19D. Fees and Fines             

Licence fees1 1,448   3,463Other fees from regulatory services 6,658   8,728Fines2 162   59Total fees and fines 8,268   12,250

1. Licence fees collected under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislative instruments.

2. This item includes contravention penalties collected under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislative instruments and penalties collected under the Environment Protection and Biodiversity Conservation Act 1999.

  2013   2012  $'000   $'000Note 19E. Interest             Loans - State and Territory Governments 693   894Total interest 693   894

Note 19F. Other Revenue             Grant repayments 2,509   7,669Other 80   -Total other revenue 2,589   7,669

GAINS             Note 19G. Reversals of Previous Asset Write-Downs and Impairments             Reversal of impairment losses 112   3,677Total reversals of previous asset write-downs and impairments 112   3,677

Note 19H. Other Gains             

Assets received free of charge1 35,427   16,301Audit services received free of charge for NHT 65   65Assets now recognised 12,068   34,917Other 162   312Total other gains 47,722   51,595

1. Water entitlements received ‘free of charge’ in accordance with the terms and conditions of payments made by the Treasury under the National Partnership on Water for the Future. Refer to Note 1.24, Water Entitlements for further information.

Note 20: Administered – Financial Assets  2013   2012  $'000   $'000Note 20A. Cash and Cash Equivalents             Cash on hand or on deposit -   -Total cash and cash equivalents -   -

       Note 20B. Taxation Receivables             Other tax 22,806   -Total taxation receivables (gross) 22,806   -       Less: impairment allowance account -   -Total taxation receivables (net) 22,806   -       Taxation receivables were aged as follows:      

Not overdue 22,479   -Overdue by:      

31 to 60 days 303   - More than 90 days 24   -

Total taxation receivables (gross) 22,806   -

  2013   2012  $'000   $'000Note 20C. Trade and Other Receivables             Goods and Services:      

Goods and services - external parties 1,812   1,396Total receivables for goods and services 1,812   1,396       Advances and Loans      

State and Territory Governments 5,998   8,116Total advances and loans 5,998   8,116       Other receivables:      

GST receivable from the Australian Taxation Office 6,512   16,837Interest 117   165Other 412   109

Total other receivables 7,041   17,111Total trade and other receivables (gross) 14,851   26,623       Less impairment allowance account:      

Goods and services (1,300)   (500)Total impairment allowance account (1,300)   (500)Total trade and other receivables (net) 13,551   26,123       Receivables are expected to be recovered in:      

No more than 12 months 9,888   20,125More than 12 months 3,663   5,998

Total trade and other receivables (net) 13,551   26,123       Receivables were aged as follows:      

Not overdue 13,401   25,821Overdue by:      

0 to 30 days 91   20231 to 60 days 10   261 to 90 days 12   -More than 90 days 1,337   598

Total receivables (gross) 14,851   26,623       The impairment allowance account is aged as follows:      

Overdue by:      More than 90 days (1,300)   (500)

Total impairment allowance account (1,300)   (500)

All receivables excluding GST receivable from Australian Taxation Office are with entities external to the Australian Government. Credit terms are within 30 days (2012: 30 days).

Loans to State and Territory Governments are made under financial assistance legislation for periods up to 40 years. No security is generally required. Principal is repaid in half yearly instalments over the life of the loan. Interest rates are fixed. Effective interest rates average 9.5% (2012: 9.5%). Principal and interest payments are due twice annually.

Reconciliation of the Impairment Allowance Account:             Movements in relation to 2013      

 Other

receivables   Total  $'000   $'000Opening balance (500)   (500)

Amounts written off 30   30Amounts recovered and reversed (46)   (46)Increase/decrease recognised in net surplus (784)   (784)

Closing balance (1,300)   (1,300)       Movements in relation to 2012      

 Other

receivables   Total  $'000   $'000Opening balance (358)   (358)

Amounts written off 40   40Amounts recovered and reversed 1   1Increase/decrease recognised in net surplus (183)   (183)

Closing balance (500)   (500)

  2013   2012  $'000   $'000Note 20D. Other Investments             Director of National Parks 229,648   238,938Sydney Harbour Federation Trust 331,872   331,823Total other investments 561,520   570,761       Other investments are expected to be recovered in:      

More than 12 months 561,520   570,761Total other investments 561,520   570,761

Refer to Note 25 for details on the principal activities of each of the Department's administered investments.

Note 21: Administered – Non-Financial Assets  2013   2012  $'000   $'000Note 21A. Land             Land:      

Land at fair value 1,467   1,467Total land 1,467   1,467

No indicators of impairment were found for land.No land is expected to be sold or disposed of within the next 12 months.

Note 21B. Property, Plant and Equipment             Heritage and cultural:      

Fair value 1,060   1,060Total heritage and cultural 1,060   1,060       

Other property, plant and equipment1:      Fair value 505,388   490,987

Total other property, plant and equipment 505,388   490,987Total property, plant and equipment 506,448   492,047

1. Other property, plant and equipment relates to the Departments 20% share in the River Murray Operations joint venture (Refer to Note 21E).

No indicators of impairment were found for property, plant and equipment.No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

TABLE A: Reconciliation of the Opening and Closing Balances of Land and Property, Plant and Equipment (2012-13)         

  Land

Other property, plant and

equipment2

Heritage and

cultural1, 2 Total3

  $’000 $’000 $’000 $’000As at 1 July 2012        Gross book value 1,467 490,987 1,060 493,514Accumulated depreciation and impairment - - - -Net book value 1 July 2012 1,467 490,987 1,060 493,514         Additions:        

From jointly controlled assets in River Murray Operations JV - 11,181 - 11,181Revaluations and impairments recognised in other comprehensive income - 3,220 12 3,232Depreciation expense - - (12) (12)Net book value 30 June 2013 1,467 505,388 1,060 507,915         Net book value as of 30 June 2013 represented by:        Gross book value 1,467 505,388 1,060 507,915Accumulated depreciation and impairment - - - -  1,467 505,388 1,060 507,915

1. Land and other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class.

2. Refer to Note 21B.

3. Total equals total land (Note 21A) plus total property, plant and equipment (Note 21B).

.

TABLE A (Cont'd): Reconciliation of the Opening and Closing Balances of Land and Property, Plant and Equipment (2011-12)         

  Land

Other property, plant and

equipment2

Heritage and

cultural1, 2 Total3

  $’000 $’000 $’000 $’000As at 1 July 2011        Gross book value 1,467 423,045 1,059 425,571Accumulated depreciation and impairment - - - -Net book value 1 July 2011 1,467 423,045 1,059 425,571Additions:        

From jointly controlled assets in River Murray Operations JV - 34,917 - 34,917Revaluations and impairments recognised in other comprehensive income - 33,025 13 33,038Depreciation expense - - (12) (12)Net book value 30 June 2012 1,467 490,987 1,060 493,514         Net book value as of 30 June 2012 represented by:        Gross book value 1,467 490,987 1,060 493,514Accumulated depreciation and impairment - - - -  1,467 490,987 1,060 493,514

1. Land and other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class.

2. Refer to Note 21B.

3. Total equals total land (Note 21A) plus total property, plant and equipment (Note 21B).

  2013   2012  $'000   $'000Note 21C. Intangibles             Water assets:      

Purchased 2,486,239   2,132,667Purchased - pending registration 72,559   157,126Accumulated impairment losses1 (696,250)   (352,956)

Total water assets 1,862,548   1,936,837       Computer software:      

Internally developed – in progress 11,632   5,791Internally developed – in use 1,012   -Accumulated amortisation (413)   -

Total computer software 12,231   5,791       

Total intangibles 1,874,779   1,942,628

1. Refer to Note 18E for further information.

No intangibles are expected to be sold or disposed of within the next 12 months.

TABLE B: Reconciliation of the Opening and Closing Balances of Intangibles (2012-13)       

 Water

Assets1

Computer software

internally developed Total

  $’000 $’000 $’000As at 1 July 2012      Gross book value 2,289,793 5,791 2,295,584Accumulated amortisation and impairment (352,956) - (352,956)Net book value 1 July 2012 1,936,837 5,791 1,942,628       Additions:      

By purchase or internally developed1 233,578 6,853 240,431Assets received free of charge 35,427 - 35,427From jointly controlled assets in Living Murray Initiative JV - - -

Impairments recognised in the operating result (343,406) - (343,406)Reversal of impairments recognised in the operating result 112 - 112Amortisation - (413) (413)Net book value 30 June 2013 1,862,548 12,231 1,874,779       Net book value as of 30 June 2013 represented by:      Gross book value 2,558,798 12,644 2,571,442Accumulated amortisation and impairment (696,250) (413) (696,663)  1,862,548 12,231 1,874,779

1. Under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP), there are a number of projects which improve the efficiency of irrigation infrastructure and generate savings in the use of water. As part of the SRWUIP funding arrangement, the Australian Government will take a share of that water saving in the form of a water entitlement for use in delivering the Government’s environmental watering objectives. In 2013, the Department acquired $119.189m of water entitlements under this program.

TABLE B (Cont'd): Reconciliation of the Opening and Closing Balances of Intangibles (2011-12)       

 Water

Assets1

Computer software internally

developed Total  $’000 $’000 $’000As at 1 July 2011      Gross book value 1,674,968 3,265 1,678,233Accumulated amortisation and impairment (282,370) - (282,370)Net book value 1 July 2011 1,392,598 3,265 1,395,863       Additions:      

By purchase or internally developed1 598,524 2,526 601,050Assets received free of charge 15,771 - 15,771From jointly controlled assets in Living Murray Initiative JV 530 - 530

Impairments recognised in the operating result (74,262) - (74,262)Reversal of impairments recognised in the operating result 3,676 - 3,676Net book value 30 June 2012 1,936,837 5,791 1,942,628       Net book value as of 30 June 2012 represented by:      Gross book value 2,289,793 5,791 2,295,584Accumulated amortisation and impairment (352,956) - (352,956)  1,936,837 5,791 1,942,628

1. Under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP), there are a number of projects which improve the efficiency of irrigation infrastructure and generate savings in the use of water. As part of the SRWUIP funding arrangement, the Australian Government will take a share of that water saving in the form of a water entitlement for use in delivering the Government’s environmental watering objectives. In 2012, the Department acquired $57.353m of water entitlements under this program.

  2013   2012  $'000   $'000Note 21D. Inventories             Inventories held for sale 12,559   11,896Total inventories 12,559   11,896       Inventories are expected to be sold in:      

No more than 12 months 111   105More than 12 months 12,448   11,791

Total inventories 12,559   11,896

During 2013, $224,800 of inventory held for sale was recognised as an expense (2012: $207,660).No items of inventory were recognised at fair value less cost to sell.

Note 21E. Jointly Controlled Assets                 The Department is a venturer in the following jointly controlled assets:        Share of Output  Principal 2013   2012  activity %   %Jointly Controlled Assets:        

River Murray Operations JV   20   20Living Murray Initiative JV   20   20

         

The Department’s interest, as a venturer, in assets employed in the above jointly controlled assets is detailed below. The amounts are included in the financial statements under their respective asset categories:             2013   2012    $’000   $’000Jointly Controlled Assets:        Non-current assets        

Land and buildings:        River Murray Operations   1,467   1,467

Property, plant and equipment:        River Murray Operations   505,388   490,987

Water assets:        River Murray Operations   814   814Living Murray Initiative   86,881   99,599

Total non-current assets   594,550   592,867Total assets   594,550   592,867

Note 22: Administered – Payables

  2013   2012  $'000   $'000Note 22A. Suppliers             Trade creditors and accruals 7,166   8,715Total suppliers 7,166   8,715       Supplier payables expected to be settled within 12 months:      

Related entities 4,324   6,971External parties 2,842   1,744

Total 7,166   8,715       Total suppliers 7,166   8,715

Settlement was usually made within 30 days

Note 22B. Grants             Public sector:      

Australian Government entities (related entities) 1,331   1,425State and Territory Governments 10,001   11,400Local Governments 3,936   4,680

Private sector:      Non-profit organisations 4,849   2,972Profit making entities 1,506   12,615Individuals 237   9Universities 1,158   133Overseas 40   100

Total grants 23,058   33,334       Total grants - are expected to be settled in:      

No more than 12 months 23,058   33,334Total grants 23,058   33,334

Settlement was made according to the terms and conditions of each grant within 30 days of performance or eligibility.

Note 23: Administered – Cash Flow Reconciliation

  2013   2012  $'000   $'000

Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement             Cash and cash equivalents as per:      

Schedule of administered cash flows -   -Schedule of administered assets and liabilities -   -

Difference -   -       Reconciliation of net cost of services to net cash from operating activities:      

Net cost of services (806,433)   (810,005)       Adjustments for non-cash items      

Restructuring -   28,827Adjustment for errors -   45Other income not providing cash (46,608)   (51,218)Depreciation / amortisation 425   12Net write down of non-financial assets 343,294   70,586Other expenses not requiring cash (119,189)   (57,353)

       Changes in assets / liabilities      

(Increase) / decrease in net receivables 10,454   (9,093)(Increase) / decrease in tax receivables (22,806)   -(Increase) / decrease in inventories (663)   208Increase / (decrease) in supplier payables (1,549)   3,540Increase / (decrease) in subsidies payable -   (3,883)Increase / (decrease) in grants payable (10,276)   (12,519)

Net cash from (used by) operating activities (653,351)   (840,853)

Note 24: Administered – Contingent Assets and Liabilities

Quantifiable Administered Contingencies

There are no quantifiable contingencies in either the current or the immediately preceding reporting periods, therefore there is no schedule for such items.

Unquantifiable Administered Contingencies

At 30 June 2013, the Department carried a contingent asset in respect of input tax credits receivable from the Australian Taxation Office (ATO). The ATO is currently calculating the extent of the credits and it is not possible to estimate the value of the receivable at this stage (2012: Nil).

At 30 June 2013, the Department carried a contingent asset in respect of funding, provided under the NSW State Priority Projects program, to the NSW Government to purchase land and water entitlements in the Nimmie-Caira area. It was not possible to estimate the value of the assets that may be received in relation to this program at this stage (2012: Nil).

The Department of Sustainability, Environment, Water, Population and Communities has detected some contamination at the former site of the National Halon Bank in Braybrook, Victoria, which was leased to the Commonwealth. Investigations are continuing into the cause, source and timing of the contamination. Once these investigations have been completed, the extent of any potential soil and groundwater remediation costs for the parties involved, including the Commonwealth, will be clearer.

Significant Remote Administered Contingencies

Under the 2013 Intergovernmental Agreement on Implementing Water Reform in the Murray Darling Basin, signatory Basin States have agreed that the capped financial support provided through the associated National Partnership for state implementation payments replaces the 'No Net Additional Costs' provision under the 2008 Intergovernmental Agreement on Murray-Darling Basin Reform. As at 15 July 2013, Victoria, South Australia and the ACT had signed the 2013 Intergovernmental Agreement, whilst NSW and Queensland were considering the matter further and are thus still covered under the provisions of the old 2008 Intergovernmental Agreement. The 2008 Intergovernmental Agreement specified that the Basin States will not bear additional net costs as a consequence of the reforms agreed between the parties and implementation of the Water Act 2007. This undertaking ceases on 30 June 2015.

Note 25: Administered – Investments

The principal activities of each of the Department's administered investments were as follows (Refer to Note 20D): Director of National ParksAssists the Minister and the Department in the conservation and appreciation of Australia's biological diversity and associated cultural heritage, through leadership and cooperation in the management of the Commonwealth's protected areas.

Sydney Harbour Federation TrustIs responsible for planning, managing, conserving, enhancing and making publicly accessible certain lands on or near the foreshores of Sydney Harbour.

Note 26: Administered – Financial Instruments

  2013   2012  $'000   $'000Note 26A. Categories of Financial Instruments             Financial Assets      Loans and receivables:      

Cash and cash equivalents -   -Advances and loans 5,998   8,116Goods and services and other receivables 1,041   1,170

Total loans and receivables 7,039   9,286       Carrying amount of financial assets 7,039   9,286       Financial Liabilities      At amortised cost:      

Trade creditors and accruals 7,166   8,715Grants payable 23,058   33,334

Total financial liabilities at amortised cost 30,224   42,049       Carrying amount of financial liabilities 30,224   42,049

Note 26B. Net Income and Expense from Financial Assets             Loans and receivables      Interest revenue 693   894Impairment (926)   (402)Net gain/(loss) from loans and receivables (233)   492       Net gain/(loss) from financial assets (233)   492

Note 26C. Net Income and Expense from Financial Liabilities             There have been no net gains/(losses) recorded for financial liabilities in 2013 financial year (2012: Nil).       

Note 26D. Fair Value of Financial Instruments                 The fair value of all financial assets and liabilities approximate their carrying amounts.         

Note 26E. Credit Risk                     

The administered activities of the Department were not exposed to a high level of credit risk as the majority of financial assets were cash, receivables, advances and loans to State and Territory Governments.

The Department managed its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Department had policies and procedures that guided employees in the debt recovery techniques that were to be applied.

The Department assessed the risk of the default on payment and allocated the following amounts to an impairment allowance account: Goods and services $1,300,000 (2012: $500,000).            

The following table illustrates the Department's gross exposure to credit risk, excluding any collateral or credit enhancements.        2013 2012        $'000 $'000Financial assets          Loans and receivables          

Cash and cash equivalents       - -Advances and loans       5,998 8,116Goods and services and other receivables       1,041 1,170

Total       7,039 9,286           The Department held no collateral to mitigate against credit risk.           Credit quality of financial instruments not past due or individually determined as impaired

   

Not past due nor

impaired

Not past due nor

impaired

Past due or

impaired

Past due or

impaired    2013 2012 2013 2012    $'000 $'000 $'000 $'000Financial assets          Loans and receivables          

Cash and cash equivalents   - - - -Advances and loans   5,998 8,116 - -Goods and services and other receivables   891 868 150 302

Total   6,889 8,984 150 302           Ageing of financial assets that were past due but not impaired for 2013  0 to 30 31 to 60 61 to 90 90+    days days days days Total  $'000 $'000 $'000 $'000 $'000Loans and receivables          

Other receivables 91 10 12 37 150Total 91 10 12 37 150           Ageing of financial assets that were past due but not impaired for 2012  0 to 30 31 to 60 61 to 90 90+    days days days days Total  $'000 $'000 $'000 $'000 $'000Loans and receivables          

Other receivables 202 2 - 98 302Total 202 2 - 98 302

Note 26F. Liquidity Risk                         

The Department’s financial liabilities were trade creditors and grant payables. The exposure to liquidity risk was based on the notion that the Department would encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the Department was appropriated funding from the Australian Government and the Department managed its budgeted funds to ensure it had adequate funds to meet payments as they fell due. In addition, the Department had policies in place to ensure timely payments were made when due and had no past experience of default.             Maturities for non-derivative financial liabilities 2013

 On

demandWithin 1

year1 to 2 years

2 to 5 years >5 years Total

  $'000 $'000 $'000 $'000 $'000 $'000Other liabilities            

Trade creditors and accruals - 7,166 - - - 7,166 Grants payable - 23,058 - - - 23,058

Total - 30,224 - - - 30,224             Maturities for non-derivative financial liabilities 2012

 On

demandWithin 1

year1 to 2 years

2 to 5 years >5 years Total

  $'000 $'000 $'000 $'000 $'000 $'000Other liabilities            

Trade creditors and accruals - 8,715 - - - 8,715 Grants payable - 33,334 - - - 33,334

Total - 42,049 - - - 42,049

The Department had no derivative financial liabilities in either 2013 or 2012.

Note 26G. Market Risk             

The Department held basic financial instruments that did not expose the Department to certain market risks. The Department was not exposed to 'Currency Risk'.

Interest Rate Risk

The only interest bearing items on the balance sheet were the ‘Loans to State and Territory Governments’. These items had fixed interest and would not fluctuate due to changes in the market interest rate.

Other Price Risk

The Department’s administered activities were not exposed to “Other Price Risk’. Its administered investments were not traded on the Australian Stock Exchange. It did not hold any other financial instruments that would be exposed to price risk.       

Note 27: Administered Financial Assets Reconciliation

    2013   2012    $'000   $'000Financial assets Notes               

Total financial assets as per schedule of administered assets and liabilities

 597,877   596,884

Less: non-financial instrument components        GST receivable from the Australian Taxation Office   6,512   16,837Taxation receivables   22,806   -Other investments   561,520   570,761

Total non-financial instrument components   590,838   587,598Total financial assets as per financial instruments note 26A 7,039   9,286

Note 28: Appropriations

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance and Deregulation (DoFD) provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

In 2012-13, following the receipt of additional legal advice, DoFD advised all agencies that there could be breaches of Section 83 under certain circumstances with the management of Goods and Services Tax payments made pursuant to the Financial Management and Accountability Act 1997 and with payments made under the Remuneration Tribunal Act 1973 and the Long Service Leave (Commonwealth employees) Act 1976.

The Department has reviewed its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments. The Department has determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to the Department. The Department is not aware of any specific breaches of Section 83 in respect of these items.

Table A. Annual Appropriations ('Recoverable GST exclusive')                   2013 Appropriations

Appropriation applied in 2013

(current and prior years)

   Appropriation Act FMA Act

Total appropriation

 

 Annual

AppropriationAppropriations

reduced1 Section 30 Section 31 Section 32 Variance  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL                

Ordinary annual services2, 3 461,001 (1,286) 15,766 100,220 - 575,701 (559,512) 16,189Other services                

Equity4 1,872 - -   - 1,872 (1,506) 366Total departmental 462,873 (1,286) 15,766 100,220 - 577,573 (561,018) 16,555ADMINISTERED                

Ordinary annual services                Administered items5 801,623 (97,398) 1,022   - 705,247 (714,781) (9,534)

Other services                States, ACT, NT and Local government6 24,085 (6,315) -   - 17,770 (19,126) (1,356)Administered assets and liabilities7 189,571 - -   - 189,571 (119,118) 70,453

Total administered 1,015,279 (103,713) 1,022   - 912,588 (853,025) 59,563

Notes:1. Appropriations reduced under Appropriation Acts (Nos. 1, 3 & 5) 2012-13: sections 10, 11, 12 and 15 and under Appropriation Acts (Nos. 2, 4 & 6) 2012-13: sections 12,

13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. On 22 November 2012, the Finance Minister determined a reduction in departmental appropriations following a request by the Minister for Sustainability, Environment, Water, Population and Communities. The amount of the reduction determined under Appropriation Act (No. 1) 2012-13 was $1,286,000.

As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos 1, 3 & 5) 2012-13 and section 12 of Appropriation Acts (Nos 2,4 & 6) 2012-13, the appropriation is taken to be reduced to the required amount specified in Table E of this note once the annual report is tabled in Parliament. The appropriation reduced due to the tabling of the 2011-12 annual report was $487,092,846.82. All administered appropriations may be adjusted by a Finance Minister’s determination, which is disallowable by Parliament. No administered appropriations were adjusted by a Finance Minister’s determination in 2013.

2. In 2013, an adjustment of $2,626,000 was recognised as a formal addition in revenue (in accordance with FMOs Division 101) but at law the appropriations had not been amended before the end of the reporting period.

3. ‘Departmental Ordinary annual services’ – The purpose of Departmental appropriations is to provide money for the annual operating costs of agencies and Departmental appropriations do not lapse at financial year end. The appropriation applied in 2013 is the cash paid and appropriation is being carried forward to meet costs incurred in 2013, but not yet paid.

4. ‘Equity’ – This variance represents funding that will be applied to complete software development projects.

5. ‘Administered items’ – This variance represents the current year retention funding of $19,974,128 less the prior year retention funding expended in the current year of $29,508,773 (refer Table F).

6. ‘States, ACT, NT and Local government’ – The variance represents the current year retention funding of $528,235 less the prior year retention funding of $1,883,493 expended in the current year.

7. ‘Administered assets and liabilities’ - This appropriation primarily relates to the Restoring the Balance in the Murray-Darling Basin (Water Purchasing) program. Water entitlement purchases are only pursued when there is enough uncommitted appropriation in the year a water purchase tender is commenced. Due to the time between the opening of a tender and the settlement of trades (tender opening and assessment, conveyance, including obtaining state trade approval) the water purchasing program will often have unspent appropriations.

Table A (Cont'd). Annual Appropriations ('Recoverable GST exclusive')                   2012 Appropriations

Appropriation applied in 2012

(current and prior years) Variance

  Appropriation Act FMA ActTotal

appropriation Annual

AppropriationAppropriations

reduced1 Section 30 Section 31 Section 32  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL                

Ordinary annual services 515,334 (15,000) 10,685 91,576 (3,453) 599,142 (599,146) (4)Other services                

Equity2 1,545 - -   - 1,545 (708) 837Total departmental 516,879 (15,000) 10,685 91,576 (3,453) 600,687 (599,854) 833ADMINISTERED                

Ordinary annual services                Administered items3 1,387,038 (447,791) 2,131   (118,257) 823,121 (828,642) (5,521)

Other services                States, ACT, NT and Local government4 78,432 (39,302) -   (30,000) 9,130 (7,247) 1,883Administered assets and liabilities5 410,889 - -   - 410,889 (542,796) (131,907)

Total administered 1,876,359 (487,093) 2,131   (148,257) 1,243,140 (1,378,685) (135,545)

Notes:

1. Appropriations reduced under Appropriation Acts (Nos. 1, 3 & 5) 2011-12: sections 10, 11, and 12 and under Appropriation Acts (Nos. 2, 4 & 6) 2011-12: sections 12, 13, and 14. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. On 26 June 2012, the Finance Minister determined a reduction in departmental appropriations following a request by the Minister for Sustainability, Environment, Water, Population and Communities. The amount of the reduction determined under Appropriation Act (No. 3) 2011-12 was $15,000,000.

As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos 1, 3 & 5) 2011-12 and section 12 of Appropriation Acts (Nos 2,4 & 6) 2011-12, the appropriation is taken to be reduced to the required amount specified in Table E of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister’s determination, which is disallowable by Parliament. The appropriation reduced due to the tabling of the 2010-11 annual report was $1,028,870,977.01, which included $50,206,372.77 for Outcome 6. On 21 May 2012, the Finance Minister issued a determination to reduce administered appropriations following a request by the Minister. The amount of the reduction under Appropriation Act (No 1) 2010-11 Outcome 6 was $51,852,562.41.

In 2012, there were no adjustments that met the recognition criteria of a formal addition or reduction in revenue (in accordance with FMOs Division 101) but at law the appropriations had not been amended before the end of the reporting period.

2. ‘Equity’ – This variance represents funding that will be applied to complete several software development projects.

3. ‘Administered items’ – This variance represents the current year retention funding of $29,509,000 less the prior year retention funding expended in the current year of $35,030,000 (refer Table F).

4. ‘States, ACT, NT and Local government’ – The $1,883,000 represents current year retention funding.

5. ‘Administered assets and liabilities’ - This appropriation primarily relates to the Restoring the Balance in the Murray-Darling Basin (Water Purchasing) program. Water entitlement purchases are only pursued when there is enough uncommitted appropriation in the year a water purchase tender is commenced. Due to the time between the opening of a tender to the settlement of trades (tender opening and assessment, conveyance, including obtaining state trade approval) the water purchasing program will necessarily have unspent appropriations each year.

Table B. Departmental and Administered Capital Budgets ('Recoverable GST exclusive')                           

 2013 Capital Budget Appropriations Capital Budget Appropriations applied in

2013 (current and prior years)

Variance4

  Appropriation Act FMA Act Total Capital Budget

Appropriations

Payments for non-financial

assets3

Payments for other

purposesTotal

payments Annual Capital

BudgetAppropriations

reduced2 Section 32  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL                

Ordinary annual services - Departmental                Capital Budget1 23,479 - - 23,479 (24,025) - (24,025) (546)

Notes:

1. Departmental Capital Budgets (DCB) are appropriated through Appropriation Acts (No.1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.

2. Appropriations reduced under Appropriation Acts (No.1, 3 & 5) 2012-13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.

3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases.

4. The variance of $546,000 represents amounts from the 2012 DCB expended in the current year.

Table B (Cont'd). Departmental and Administered Capital Budgets ('Recoverable GST exclusive')                         

 2012 Capital Budget Appropriations Capital Budget Appropriations applied in

2012 (current and prior years)

Variance4

  Appropriation Act FMA Act Total Capital Budget

Appropriations

Payments for non-financial

assets3

Payments for other

purposesTotal

payments Annual Capital

BudgetAppropriations

reduced2 Section 32  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000DEPARTMENTAL                

Ordinary annual services - Departmental                Capital Budget1 29,513 - - 29,513 (32,326) (1,054) (33,380) (3,867)

Notes:

1. Departmental Capital Budgets (DCB) are appropriated through Appropriation Acts (No.1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.

2. Appropriations reduced under Appropriation Acts (No.1, 3 & 5) 2011-12: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.

3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases.

4. The Department received $56,347,000 in Appropriation Act (No. 3) 2011-12 for Departmental ordinary annual services, which was comprised of $57,401,000 for operating purposes and a reduction of $1,054,000 against the Departmental Capital Budget (DCB). The reduction to the DCB was required as forward year budget estimates provided for operating purpose were transferred for capital purposes following a restructuring of administrative arrangements in 2011. The Department of Finance and Deregulation approved for the Department to draw down $1,054,000 from the DCB for operating purposes to achieve this notional split of the amount received under Appropriation Act (No. 3) 2011-12.

5. The variance of $3,867,000 represents amounts from the 2011 DCB expended in the current year.

Table C. Unspent Annual Appropriations ('Recoverable GST exclusive')     

Authority2013 2012$'000 $'000

DEPARTMENTAL    Appropriation Act (No. 1) 2011-12 - 66,932Appropriation Act (No. 2) 2011-12 - Non Operating - Equity Injection - 837Appropriation Act (No. 1) 2012-131 83,122 -Appropriation Act (No. 2) 2012-13 - Non Operating - Equity Injection 1,202 -Total 84,324 67,769ADMINISTERED    Appropriation Act (No. 2) 2010-11 - Administered Assets and Liabilities 85,438 204,555Appropriation Act (No. 1) 2011-12 - 253,919Appropriation Act (No. 2) 2011-12 - Administered Assets and Liabilities 265,065 265,065Appropriation Act (No. 2) 2011-12 - SPP - 27,586Appropriation Act (No. 3) 2011-12 - 6,418Appropriation Act (No. 4) 2011-12 - SPP - 800Appropriation Act (No. 1) 2012-13 42,648 -Appropriation Act (No. 2) 2012-13 - SPP 1,748 -Appropriation Act (No. 2) 2012-13 - Administered Assets and Liabilities1 189,571 -Appropriation Act (No. 4) 2012-13 - SPP - -Total 584,470 758,343

1. On 5 August 2013, the Finance Minister issued a determination that reduced the following appropriations:

Appropriation Act (No.1) 2012-13 $3,957,000 Appropriation Act (No. 2) 2012-13 - Administered Assets and Liabilities $27,391,000.

Table D. Special Appropriations ('Recoverable GST exclusive')           

Authority Type Purpose  

Appropriation applied2013 2012$'000 $'000

Financial Management and Accountability Act 1997 s.28(2), Administered

Refund

To provide an appropriation where an Act or other law requires or permits the repayment of an amount received by the Commonwealth and apart from this section there is no specific appropriation for the repayment.

206 5

Financial Framework Legislation Amendment Act (No. 1) 2013 : Appropriation - S69AD Special Appropriation (OPSGG S69AD Export Refunds)

Refund

A remission or refund payable under section 69AA, 69AB or 69AC is to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.

- -

Total       206 5

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. Further details of the Department’s compliance with section 83 are disclosed at Note 29A.

Note 28E. Reduction in Administered Items ('Recoverable GST exclusive')

2013 Amount required3 - by Appropriation Act Total amount required3

Total amount appropriated4 Total reduction5

Ordinary Annual Services Act (No.1) Act (No.3)      Outcome 1 292,825,035.40 0 292,825,035.40 316,119,000.00 23,293,964.60Outcome 2 11,004,665.16 0 11,004,665.16 11,006,000.00 1,334.84Outcome 3 0 0 0 0 0Outcome 4 364,028,530.93 0 364,028,530.93 435,795,000.00 71,766,469.07Outcome 5 11,666,314.94 0 11,666,314.94 13,310,000.00 1,643,685.06Outcome 6 24,700,000.00 0 24,700,000.00 25,393,000.00 693,000.00

Other Services Act (No. 2) Act (No. 4)      

Specific payments to States, ACT, NT and Local government          

Outcome 4 16,657,300.79 753,000.00 17,410,300.79 23,285,000.00 5,874,699.21Outcome 5 359,991.00 0 359,991.00 800,000.00 440,009.00

Notes:

1. Numbers in this section of the table must be disclosed to the cent.

2. Administered items for 2013 were reduced to these amounts when these financial statements were tabled in Parliament as part of the Department's 2013 annual report. This reduction was effective in 2014, but the amounts were reflected in Table A in the 2013 financial statements in the column 'Appropriations reduced' as they were adjustments to 2013 appropriations.

3. Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).

4. Total amount appropriated in 2013.

5. Total reduction effective in 2014.

Note 28 (Cont'd)E. Reduction in Administered Items ('Recoverable GST exclusive')

2012 Amount required3 - by Appropriation Act Total amount required3

Total amount appropriated4 Total reduction5

Ordinary Annual Services Act (No.1) Act (No.3)      Outcome 1 262,277,798.48 34,929,384.04 297,207,182.52 327,401,000.00 30,193,817.48Outcome 2 58,384,171.41 0 58,384,171.41 60,803,165.96 2,418,994.55Outcome 3 0 0 0 0 0Outcome 4 452,901,211.90 0 452,901,211.90 866,780,000.00 413,878,788.10Outcome 5 12,497,589.08 0 12,497,589.08 13,797,000.00 1,299,410.92

Other Services Act (No. 2) Act (No. 4)      Specific payments to States, ACT, NT and Local government          

Outcome 4 9,130,164.23 0 9,130,164.23 47,632,000.00 38,501,835.77Outcome 5 0 0 0 800,000.00 800,000.00

Notes:

1. Numbers in this section of the table must be disclosed to the cent.

2. Administered items for 2012 were reduced to these amounts when these financial statements were tabled in Parliament as part of the Department's 2012 annual report. This reduction was effective in 2013, but the amounts were reflected in Table A in the 2012 financial statements in the column 'Appropriations reduced' as they were adjustments to 2012 appropriations.

3. Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).

4. Total amount appropriated in 2012.

5. Total reduction effective in 2013.

Note 29: Special Accounts

Note 29A. Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance and Deregulation (DoFD) provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

During 2011-12, the Department developed a plan to review exposure to risks of not complying with statutory conditions on payments from appropriations. The plan involved:

identifying each special appropriation and special account; determining the risk of non-compliance by assessing the statutory conditions and the extent to which

existing payment systems and processes satisfy those conditions; and obtaining legal advice as appropriate to resolve questions of potential non-compliance.

The Department identified 10 appropriations involving statutory conditions for payment, comprising:

2 special appropriations:

- Financial Management and Accountability Act 1997 s.28(2), Administered- Financial Framework Legislation Amendment Act (No. 1) 2013 : Appropriation - S69AD Special

Appropriation (OPSGG S69AD Export Refunds), Administered

8 special accounts:

- Building Australia Fund Water Portfolio Special Account- Environmental Water Holdings Special Account- Natural Heritage Trust of Australia Account- Ozone Protection and Synthetic Greenhouse Gas Account- Sea Installations Account- Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage

and the Arts Special Account- Water Efficiency Labelling and Standards Account- Water for the Environment Special Account

As at 30 June 2013 this work had been completed in respect of all appropriations with statutory conditions for payment.

The work conducted has identified no issues of non-compliance with Section 83.

In 2012-13, following the receipt of additional legal advice, DoFD advised all agencies that there could be breaches of Section 83 under certain circumstances with the management of Goods and Services Tax payments made pursuant to the Financial Management and Accountability Act 1997 and with payments made under the Remuneration Tribunal Act 1973 and the Long Service Leave (Commonwealth employees) Act 1976.

The Department has reviewed its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments. The Department has determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to the Department. The Department is not aware of any specific breaches of Section 83 in respect of these items.

Note 29B. Special Accounts ('Recoverable GST exclusive')             

 

Environmental Water Holdings Special Account1

Natural Heritage Trust of Australia Account2

Ozone Protection and SGG Account3

 2013 2012 2013 2012 2013 2012$'000 $'000 $'000 $'000 $'000 $'000

Balance brought forward from previous period 36,133 23,499 385,868 391,885 22,984 20,120Increases:            

Appropriation credited to special account 24,700 - - - - -Amounts credited under section 6(2) of the NHT Act 1997 - - 13,505 18,615 - -Amounts credited under section 23 of the NHT Act 1997 - - 149,017 172,763 - -Costs recovered - 21,000 - - 7,728 10,345Other receipts - - 292 824 1,903 1,369

Total increases 24,700 21,000 162,814 192,202 9,631 11,714Available for payments 60,833 44,499 548,682 584,087 32,615 31,834Decreases:            

Administered            Payments made - suppliers (16,089) (8,366) (47,953) (47,232) (12,034) (8,553)Payments made - grants - - (113,972) (150,972) - -Payments made - asset acquisitions (919) - - - (368) (297)Payments made - other - - (159) (15) - -Total administered decreases (17,008) (8,366) (162,084) (198,219) (12,402) (8,850)

Total decreases (17,008) (8,366) (162,084) (198,219) (12,402) (8,850)Total balance carried to the next period 43,825 36,133 386,598 385,868 20,213 22,984

Note 29B (Cont'd). Special Accounts ('Recoverable GST exclusive')             

 WELS Account4 Services for Other Entities and

Trust Moneys5

 2013 2012 2013 2012$'000 $'000 $'000 $'000

Balance brought forward from previous period 4,493 4,609 1,480 1,226Increases:        

Appropriation credited to special account - - - -Costs recovered 816 2,494 390 735Other receipts - - - -

Total increases 816 2,494 390 735Available for payments 5,309 7,103 1,870 1,961Decreases:        

Administered        Payments made - suppliers (2,271) (2,610) - -Payments made - grants - - - -Payments made - asset acquisitions - - - -Payments made - other (698) - - -Total administered decreases (2,969) (2,610) - -Special Public Money        Payments made - suppliers - - (467) (216)Payments made - grants - - (369) (265)Total special public money decreases - - (836) (481)

Total decreases (2,969) (2,610) (836) (481)Total balance carried to the next period 2,340 4,493 1,034 1,480

1. Appropriation: Financial Management and Accountability Act 1997 section 21

Establishing Instrument: Water Act 2007; section 111

Purpose: Amounts standing to the credit of the account may be debited for:

(a) the payment or discharge of the costs, expenses and other obligations incurred by the Commonwealth Water Holder in the performance of the functions of the Commonwealth Environmental Water Holder; and

(b) meeting the expenses of administering the Account.

This account is non-interest bearing.

2. Appropriation: Financial Management and Accountability Act 1997 section 21

Establishing Instrument: Natural Heritage Trust of Australia Act 1997; section 4

Purpose: The purposes of the reserves are as follows:

(a) the National Vegetation initiative;

(b) the Murray-Darling 2001 Project;

(c) (the National Land and Water Resources Audit;

(d) the National Reserve System;

(e) the Coasts and Clean Seas Initiative;

(f) environmental protection (as defined by section 15 of the Act);

(g) supporting sustainable agriculture (as defined by section 16 of the Act);

(h) natural resources management (as defined by section 17 of the Act);

(i) a purpose incidental or ancillary to any of the above purposes;

(j) the making of grants of financial assistance for any of the above purposes; and

(k) an accounting transfer purpose (as defined by section 18 of the Act).

This account earns interest at the rate of interest earned by the Commonwealth as at the end of the financial year on deposits held with the Reserve Bank of Australia.

In accordance with section 42 of the Natural Heritage Trust of Australia Act 1997, the Department has ensured that the balance of the account has not fallen below the base amount.

3. Appropriation: Financial Management and Accountability Act 1997 section 21

Establishing Instrument: Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, section 65B

Purpose: The following are the purposes of the account:

(a) paying or reimbursing the Commonwealth's costs associated with the administration of the Act and the regulations;

(b) paying or reimbursing the Commonwealth's costs associated with furthering the following programs (including providing information about those programs):

(i) ODS phase out programs;(ii) emission minimisation programs for ODSs and SGGs

(c) paying or reimbursing the Commonwealth’s costs associated with the management of the National Halon Bank;

(ca) paying or reimbursing the Commonwealth’s costs associated with research relating to:(i) substances that deplete ozone in the atmosphere; or(ii) synthetic greenhouse gases; and

(d) refunding any amounts credited to the Account in error.

4. Appropriation: Financial Management and Accountability Act 1997 section 21

Establishing Instrument: Water Efficiency Labelling and Standards Act 2005; section 64

Purpose: The purpose of the account is to make payments:

(a) to further the objects of the Water Efficiency Labelling and Standards Act 2005 (as set out in section 3 of the Act); and

(b) otherwise in connection with the performance of the Regulator's functions under the Act, the regulations or a corresponding State-Territory law.

This account is non-interest bearing.

5. Appropriation: Financial Management and Accountability Act 1997 section 20

Establishing Instrument: Financial Management and Accountability Determination 2010/02 – Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage and the Arts Special Account Establishment 2010

Purpose: The purposes of the account, for which amounts may be debited from the account, are to:

(a) disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth;

(b) disburse amounts in connection with services performed on behalf of other governments and bodies that are not FMA Act agencies;

(c) repay amounts where an Act or other law requires or permits the repayment of an amount received; and

(d) reduce the balance of the Special Account (and, therefore, the available appropriation for the Account) without making a real or notional payment.

This account is non-interest bearing.

The Department had a Building Australia Fund Water Portfolio Special Account. This account was established under section 21 of the Financial Management and Accountability Act 1997 (FMA Act). For the year ended 30 June 2013 the account had a nil balance and there were no transactions debited or credited to it during the current or prior reporting period. The purpose of the Building Australia Fund Water Portfolio Special Account was to make payments in relation to the creation or development of water infrastructure, so long as the payments were specified under subsection 84(2) of the Nation-building Funds Act 2008.

The Department had a Sea Installations Account. This account was established under section 21 of the Financial Management and Accountability Act 1997 (FMA Act). For the year ended 30 June 2013 the account had a nil balance and there were no transactions debited or credited to it during the current or prior reporting period. The purpose of the Sea Installations Account was to receipt amounts equal to money paid as a security under section 37 of the Sea Installations Act 1987 by way of a cash deposit.

The Department had a Water for the Environment Special Account. This account was established under section 21 of the Financial Management and Accountability Act 1997 (FMA Act). For the year ended 30 June 2013 the account had a nil balance and there were no transactions debited or credited to it during the current or reporting period. The purpose of the Water for the Environment Special Account was to make payments in relation to furthering the object of Part 2AA of the Water Act 2007.

Note 30: Compensation and Debt Relief

  2013   2012  $   $Compensation and Debt Relief - Departmental      No ‘Act of Grace payments' were expensed during the reporting period (2012: No expenses). -   -       

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: No waivers). -   -       

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: No payments). -   -       No ex-gratia payments were provided for during the reporting period (2012: No payments). -   -       

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: No payments). -   -       

Compensation and Debt Relief - Administered      No ‘Act of Grace payments' were expensed during the reporting period (2012: No expenses). -   -       

One waiver of amounts owing to the Australian Government were made pursuant to subsection 34(1)(a) of the Financial Management and Accountability Act 1997 (2012: No waivers). 30,000   -       

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: No payments). -   -       

No ex-gratia payments were provided for during the reporting period (2012: No payments). -   -       

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: No payments). -   -

Note 31: Reporting of Outcomes

The Department uses an Activity Based Costing System to determine the attribution of its shared items. The basis of attribution in the table below is consistent with the basis used for the Budget.

Note 31A. Net Cost of Outcome Delivery                                   Outcome 11 Outcome 21 Outcome 31 Outcome 41

  2013 2012 2013 2012 2013 2012 2013 2012  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Departmental                

Expenses 151,845 143,791 56,383 51,149 185,027 246,005 81,142 115,335Own-source income 32,763 31,189 17,195 12,930 45,508 29,107 4,059 4,366

Administered                Expenses 306,971 316,024 25,011 89,692 12 12 608,639 460,945Own-source income 1,041 877 110,537 12,062 - - 49,888 64,794

Net cost/(contribution) of outcome delivery 425,012 427,749 (46,338) 115,849 139,531 216,910 635,834 507,120

               Outcome 51 Outcome 61 Total  2013 2012 2013 2012 2013 2012  $'000 $'000 $'000 $'000 $'000 $'000Departmental            

Expenses 102,583 108,919 12,656 21,121 589,636 686,320Own-source income 10,843 12,553 413 1,128 110,781 91,273

Administered            Expenses 12,140 12,612 15,426 9,013 968,199 888,298Own-source income 300 560 - - 161,766 78,293

Net cost/(contribution) of outcome delivery 103,580 108,418 27,669 29,006 1,285,288 1,405,0521. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome.

Refer to Outcome 1 Resourcing Table, Outcome 2 Resourcing Table, Outcome 3 Resourcing Table, Outcome 4 Resourcing Table, Outcome 5 Resourcing Table and Outcome 6 Resourcing Table of this Annual Report.

Note 31B. Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome           Outcome 11 Outcome 21

  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Employees 66,527 64,002 29,692 28,284Suppliers 37,485 33,527 24,542 20,668Grants 3,559 2,130 46 446Transfer funding 40,170 41,485 -  Depreciation and amortisation 3,776 2,260 1,887 1,581Finance costs 165 168 71 93Write-down and impairment of assets 21 130 6 68Other 142 89 139 9

Total 151,845 143,791 56,383 51,149Income        

Sale of goods and rendering of services 31,902 30,569 16,717 12,382Other own-source revenue 658 466 193 315Sale of assets - 2 - 1Reversals of previous asset write-downs and impairments 11 4 1 3Other gains 192 148 284 229Revenue from Government 118,563 109,244 36,744 36,963

Total 151,326 140,433 53,939 49,893Assets        

Cash and cash equivalents - 50 - 33Trade and other receivables 32,917 35,041 18,653 7,288Other financial assets 235 213 3,927 2,619Land and buildings 6,151 6,996 25 58Property, plant and equipment 5,469 16,819 104 101Intangibles 21,929 15,384 371 618Inventories - - - -Other non-financial assets 1,921 2,471 - -

Total 68,622 76,974 23,080 10,717Liabilities        

Suppliers 6,425 7,043 990 1,537Grants 81 256 - -Other payables 23,381 18,935 1,165 1,017Leases 2,623 5,052 - -Employee provisions 25,685 32,642 6,534 5,458Other provisions 6,149 3,174 - -

Total 64,344 67,102 8,689 8,012

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome. Refer to Outcome 1 Resourcing Table, Outcome 2 Resourcing Table, Outcome 3 Resourcing Table, Outcome 4 Resourcing Table, Outcome 5 Resourcing Table and Outcome 6 Resourcing Table of this Annual Report.

Note 31B (Cont'd). Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome           Outcome 31 Outcome 41

  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Employees 49,198 47,410 45,258 44,353Suppliers 87,856 93,470 32,873 68,296Grants 1,038 723 75 650Transfer funding - - - -Depreciation and amortisation 32,452 32,080 2,705 1,750Finance costs 12,640 15,889 125 153Write-down and impairment of assets 5 4 12 120Other 1,838 56,429 94 13

Total 185,027 246,005 81,142 115,335Income        

Sale of goods and rendering of services 40,168 26,752 3,532 3,884Other own-source revenue 1,850 2,263 380 342Sale of assets 220 92 - 2Reversals of previous asset write-downs and impairments - - 2 12Other gains 3,270 - 145 126Revenue from Government 101,783 103,075 80,707 110,318

Total 147,291 132,182 84,766 114,684Assets        

Cash and cash equivalents 762 3,110 - -Trade and other receivables 15,762 4,231 12,767 19,587Other financial assets 145 340 431 666Land and buildings 242,847 255,538 - -Property, plant and equipment 96,949 102,617 - -Intangibles 453 226 - 640Inventories 8,078 7,754 - -Other non-financial assets - 3,242 - -

Total 364,996 377,058 13,198 20,893Liabilities        

Suppliers 4,708 3,126 8,130 7,893Grants - - 23 -Other payables 3,945 2,386 1,160 1,138Leases - - - -Employee provisions 10,380 10,737 8,648 7,934Other provisions 400,220 421,157 - -

Total 419,253 437,406 17,961 16,965

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome. Refer to Outcome 1 Resourcing Table, Outcome 2 Resourcing Table, Outcome 3 Resourcing Table, Outcome 4 Resourcing Table, Outcome 5 Resourcing Table and Outcome 6 Resourcing Table of this Annual Report.

Note 31B (Cont'd). Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome           Outcome 51 Outcome 61

  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Employees 67,686 66,602 8,792 11,659Suppliers 27,653 34,078 3,310 8,117Grants 1,759 3,771 3 194Transfer funding - - - -Depreciation and amortisation 5,108 3,985 507 996Finance costs 172 264 23 87Write-down and impairment of assets 59 208 2 63Other 146 11 19 5

Total 102,583 108,919 12,656 21,121Income        

Sale of goods and rendering of services 9,853 11,678 322 872Other own-source revenue 772 644 64 181Sale of assets - 3 - 1Reversals of previous asset write-downs and impairments 19 9 - 2Other gains 199 219 27 72Revenue from Government 84,596 88,155 12,512 18,496

Total 95,439 100,708 12,925 19,624Assets        

Cash and cash equivalents - - - -Trade and other receivables 14,983 11,898 1,086 51Other financial assets - 4 - -Land and buildings 5,320 6,792 - -Property, plant and equipment 967 1,081 - -Intangibles 3,921 2,608 - -Inventories - - - -Other non-financial assets - 8 - -

Total 25,191 22,391 1,086 51Liabilities        

Suppliers 1,453 1,322 209 220Grants 50 667 - -Other payables 3,079 2,866 161 257Leases - - - -Employee provisions 12,924 12,867 1,420 1,009Other provisions - 3,332 - -

Total 17,506 21,054 1,790 1,486

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome. Refer to Outcome 1 Resourcing Table, Outcome 2 Resourcing Table, Outcome 3 Resourcing Table, Outcome 4 Resourcing Table, Outcome 5 Resourcing Table and Outcome 6 Resourcing Table of this Annual Report.

Note 31B (Cont'd). Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome           Not attributed2 Total  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Employees     267,153 262,310Suppliers     213,719 258,156Grants     6,480 7,914Transfer funding     40,170 41,485Depreciation and amortisation     46,435 42,652Finance costs     13,196 16,654Write-down and impairment of assets     105 593Other     2,378 56,556

Total     589,636 686,320Income        

Sale of goods and rendering of services     102,494 86,137Other own-source revenue     3,917 4,211Sale of assets     220 101Reversals of previous asset write-downs and impairments     33 30Other gains     4,117 794Revenue from Government     434,905 466,251

Total     545,686 557,524Assets        

Cash and cash equivalents 2,230 2,275 2,992 5,468Trade and other receivables - - 96,168 78,096Other financial assets - - 4,738 3,842Land and buildings - - 254,343 269,384Property, plant and equipment - - 103,489 120,618Intangibles - - 26,674 19,476Inventories - - 8,078 7,754Other non-financial assets - - 1,921 5,721

Total 2,230 2,275 498,403 510,359Liabilities        

Suppliers 351 440 22,266 21,581Grants - - 154 923Other payables - - 32,891 26,599Leases - - 2,623 5,052Employee provisions - - 65,591 70,647Other provisions - - 406,369 427,663

Total 351 440 529,894 552,465

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome. Refer to Outcome 1 Resourcing Table, Outcome 2 Resourcing Table, Outcome 3 Resourcing Table, Outcome 4 Resourcing Table, Outcome 5 Resourcing Table and Outcome 6 Resourcing Table of this Annual Report.

2. Assets and liabilities that could not be reliably attributed to outcomes.

Note 31C. Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcomes

  Outcome 11 Outcome 21

  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Suppliers 49,765 54,444 15,874 10,452Subsidies - - - 11,025Grants 256,222 261,139 8,742 68,215Depreciation and amortisation - - 395 -Write-down and impairment of

assets 814 402 - -Other expenses 170 39 - -

Total 306,971 316,024 25,011 89,692Income        

Indirect tax - - 1,991 1,369Other taxes - - 99,819 -Sale of goods and rendering of

services - - 572 839Fees and fines 1 3 7,192 9,673Interest - - - -Other revenue 975 808 76 181Reversals of previous asset write-downs and impairments - 1 - -Other gains 65 65 887 -

Total 1,041 877 110,537 12,062Assets        

Cash and cash equivalents - - - -Taxation receivables - - 22,806 -Trade and other receivables 3,933 7,837 375 279Other investments 561,520 570,761 - -Land - - - -Property, plant and equipment - - - -Intangibles - - 563 713Inventories - - 12,559 11,896

Total 565,453 578,598 36,303 12,888Liabilities        

Suppliers 1,658 2,908 3,098 1,957Grants 9,168 11,325 728 -

Total 10,826 14,233 3,826 1,957

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome.

Note 31C (Cont'd). Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcomes           Outcome 31 Outcome 41

  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Suppliers - - 25,099 10,675Subsidies - - - -Grants - - 239,436 376,008Depreciation and amortisation 12 12 - -Write-down and impairment of

assets - - 343,406 74,262Other expenses - - 698 -

Total 12 12 608,639 460,945Income        

Indirect tax - - - -Other taxes - - - -Sale of goods and rendering of

services - - - -Fees and fines - - 811 2,422Interest - - 693 894Other revenue - - 1,504 6,386Reversals of previous asset write-downs and impairments - - 112 3,676Other gains - - 46,768 51,416

Total - - 49,888 64,794Assets        

Cash and cash equivalents - - - -Taxation receivables - - - -Trade and other receivables - - 8,874 17,215Other investments - - - -Land - - 1,467 1,467Property, plant and equipment 1,060 1,060 505,388 490,987Intangibles - - 1,873,256 1,941,861Inventories - - - -

Total 1,060 1,060 2,388,985 2,451,530Liabilities        

Suppliers - - 2,385 3,150Grants - - 8,582 20,964

Total - - 10,967 24,114

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome.

Note 31C (Cont'd). Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcomes           Outcome 51 Outcome 61

  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Suppliers 80 - 15,408 9,013Subsidies - - - -Grants 11,948 12,612 - -Depreciation and amortisation - - 18 -Write-down and impairment of

assets 112 - - -Other expenses - - - -

Total 12,140 12,612 15,426 9,013Income        

Indirect tax - - - -Other taxes - - - -Sale of goods and rendering of

services - - - -Fees and fines 264 152 - -Interest - - - -Other revenue 34 294 - -Reversals of previous asset write-downs and impairments - - - -Other gains 2 114 - -

Total 300 560 - -Assets        

Cash and cash equivalents - - - -Taxation receivables - - - -Trade and other receivables 316 748 53 44Other investments - - - -Land - - - -Property, plant and equipment - - - -Intangibles - - 960 54Inventories - - - -

Total 316 748 1,013 98Liabilities        

Suppliers - - 25 700Grants 4,580 1,045 - -

Total 4,580 1,045 25 700

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome.

Note 31C (Cont'd). Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcomes           Not attributed2 Total  2013 2012 2013 2012  $'000 $'000 $'000 $'000Expenses        

Suppliers     106,226 84,584Subsidies     - 11,025Grants     516,348 717,974Depreciation and amortisation     425 12Write-down and impairment of

assets     344,332 74,664Other expenses     868 39

Total     968,199 888,298Income        

Indirect tax     1,991 1,369Other taxes     99,819 -Sale of goods and rendering of

services     572 839Fees and fines     8,268 12,250Interest     693 894Other revenue     2,589 7,669Reversals of previous asset write-downs and impairments     112 3,677Other gains     47,722 51,595

Total     161,766 78,293Assets        

Cash and cash equivalents - - - -Taxation receivables - - 22,806 -Trade and other receivables - - 13,551 26,123Other investments - - 561,520 570,761Land - - 1,467 1,467Property, plant and equipment - - 506,448 492,047Intangibles - - 1,874,779 1,942,628Inventories - - 12,559 11,896

Total - - 2,993,130 3,044,922Liabilities        

Suppliers - - 7,166 8,715Grants - - 23,058 33,334

Total - - 30,224 42,049

1. Outcomes 1, 2, 3, 4, 5 and 6 are described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome.

2. Assets and liabilities that could not be reliably attributed to outcomes.

Note 32: Cost Recovery

  2013   2012  $'000   $'000       Note 32A. Receipts Subject to Cost Recovery Policy      Other cost recovery arrangements      

Assessment and grant of permits      Fuel Quality Standards Act 2000 23   288Sea Dumping Permit Application Fees 182   200Australian Bird and Bat Banding Scheme 27   27Hazardous Waste Permits 25   17

Total receipts subject to cost recovery policy 257   532

Note 32B. Administered Receipts Subject to Cost Recovery Policy      Significant cost recovery arrangements      

Ozone Protection and Synthetic Greenhouse Gas Management Program1 7,272   9,592

       Other cost recovery arrangements      

Assessment and grant of permits      Water Efficiency Labelling and Standards Scheme 817   2,375Wildlife Trade Permits 105   96

Total administered receipts subject to Cost Recovery Policy 8,194   12,063       

1. The comparative has been restated from what was reported in the 2011-12 Financial Statements ($11,714,000). The figure reported in the 2011-12 Financial Statements included amounts relating to excise duties which were classified as taxation revenue and not reported in this note.

Note 33: Net Cash Appropriation Arrangements

  2013   2012  $'000   $'000

Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 31,878   (123,027)Plus: depreciation/amortisation expenses previously funded through revenue appropriation 46,435   42,652Total comprehensive income (loss) - as per the Statement of Comprehensive Income (14,557)   (165,679)

1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

Natural Heritage Trust of Australia

Financial Statementsfor the period ended 30 June 2013

Natural Heritage Trust of AustraliaSTATEMENT BY THE SECRETARY AND CHIEF FINANCE OFFICER

Subsection 43(3) of the Natural Heritage Trust of Australia Act 1997 requires that the financial statements of the Natural Heritage Trust of Australia Account comply with written guidelines issued by the Minister for Finance.

In our opinion, the attached financial statements for the year ended 30 June 2013 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

[Signed] [Signed]

Dr Paul Grimes

Secretary

29 August 2013

Lily Viertmann

Chief Finance Officer

29 August 2013

Statement of Comprehensive Income forNatural Heritage Trust of Australiafor the period ended 30 June 2013

    2013   2012  Notes $'000   $'000EXPENSES        Supplier 3A 46,428   49,358Grants 3B 115,888   141,665Write-down and impairment of assets 3C 42   197Other expenses 3D 145   29Total expenses   162,503   191,249         LESS:        OWN-SOURCE INCOME        Own-source revenue        Interest 4A 10,631   13,505Other revenue 4B 369   341Total own-source revenue   11,000   13,846         Gains        Other gains 4C 65   65Total gains   65   65Total own-source income   11,065   13,911         Net cost of services   151,438   177,338         Revenue from Government 4D 149,017   172,763Surplus (Deficit) attributable to the Australian Government   (2,421)   (4,575)         Total comprehensive income (loss) attributable to the Australian Government   (2,421)   (4,575)

The above statement should be read in conjunction with the accompanying notes.

Balance Sheet forNatural Heritage Trust of Australiaas at 30 June 2013

    2013   2012  Notes $'000   $'000ASSETS        Financial Assets        Cash and cash equivalents 5A -   -Trade and other receivables 5B 397,490   402,093Total financial assets   397,490   402,093         Total assets   397,490   402,093         LIABILITIES        Payables        Suppliers 6A 946   2,736Grants 6B 3,996   2,208Other payables 6C 244   2,424Total payables   5,186   7,368         Total liabilities   5,186   7,368         Net assets   392,304   394,725         EQUITY        Retained surplus   392,304   394,725Total equity   392,304   394,725

The above statement should be read in conjunction with the accompanying notes.

Statement of Changes In Equity forNatural Heritage Trust of Australiafor the period ended 30 June 2013

  Retained earnings Total equity  2013 2012 2013 2012  $'000 $'000 $'000 $'000Opening balance        Balance carried forward from previous period 394,725 399,300 394,725 399,300         Comprehensive income        Surplus (Deficit) for the period (2,421) (4,575) (2,421) (4,575)Total comprehensive income (2,421) (4,575) (2,421) (4,575)Closing balance as at 30 June 392,304 394,725 392,304 394,725Closing balance attributable to the Australian Government 392,304 394,725 392,304 394,725

The above statement should be read in conjunction with the accompanying notes.

Cash Flow Statement forNatural Heritage Trust of Australiafor the period ended 30 June 2013

    2013   2012  Notes $'000   $'000OPERATING ACTIVITIES        Cash received        Appropriations   159,308   200,430Interest   13,505   18,615Net GST received   12,732   20,064Other   313   970Total cash received   185,858   240,079         Cash used        Suppliers   50,627   52,019Grants   121,857   165,789Section 30A repayments to OPA   12,732   20,064Section 31 receipts transferred to OPA   469   2,192Other   173   15Total cash used   185,858   240,079         Net cash from (used by) operating activities 7 -   -         Net increase (decrease) in cash held   -   -Cash and cash equivalents at the beginning of the reporting period -   -Cash and cash equivalents at the end of the reporting period 5A -   -

The above statement should be read in conjunction with the accompanying notes.

Schedule of Commitments forNatural Heritage Trust of Australiaas at 30 June 2013

  2013   2012  $'000   $'000BY TYPE      Commitments receivable      

Net GST recoverable on commitments (173)   (9,773)Total commitments receivable (173)   (9,773)       Commitments payable      

Other commitments      Project commitments1 6,403   105,580Other2 -   5,108Total other commitments 6,403   110,688

Total commitments payable 6,403   110,688Net commitments by type 6,230   100,915       BY MATURITY      Commitments receivable      

Other commitments receivable      One year or less (173)   (9,643)From one to five years -   (130)Total other commitments receivable (173)   (9,773)

Total commitments receivable (173)   (9,773)       Commitments payable      

Project commitments      One year or less 6,403   104,146From one to five years -   1,434Total project commitments 6,403   105,580

       Other commitments      One year or less -   5,108From one to five years -   -Total other commitments -   5,108

Total commitments payable 6,403   110,688Net commitments by maturity 6,230   100,915

Note: Commitments are GST inclusive where relevant.

1. Project commitments relate to grant amounts payable under agreements in respect of which the grantee has yet to complete the milestone required under the agreement.

2. Other commitments relate to contracts for goods and services in respect of which the contracted party has yet to provide the goods and services required under the contract.

The above statement should be read in conjunction with the accompanying notes.

Natural Heritage Trust of AustraliaTable of Contents - Notes

Note 1: Summary of Significant Accounting Policies

Note 2: Events After the Reporting Period

Note 3: Expenses

Note 4: Income

Note 5: Financial Assets

Note 6: Payables

Note 7: Cash Flow Reconciliation

Note 8: Contingent Assets and Liabilities

Note 9: Remuneration of Auditors

Note 10: Financial Instruments

Note 11: Financial Assets Reconciliation

Note 12: Special Accounts

Note 13: Compensation and Debt Relief

Note 14: Reporting of Outcomes

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Natural Heritage Trust of Australia AccountThe Natural Heritage Trust of Australia Account (the Trust, NHT) is a special account for the purposes of section 21 of the Financial Management and Accountability Act 1997 (FMA Act). The Trust was established by the Natural Heritage Trust of Australia Act 1997 (NHT Act) to conserve, repair and replenish Australia’s natural capital infrastructure. The Trust’s objectives are:

Biodiversity Conservation – through protecting and restoring Australia’s terrestrial, freshwater, estuarine and marine ecosystems and habitat for native plants and animals

Sustainable Use of Natural Resources – through using and managing Australia’s land, water and marine resources in ways that maintain and improve the productivity and profitability of resource-based industries

Community Capacity-Building and Institutional Change – supporting individuals, landholders, industry and communities with skills, knowledge, information and institutional frameworks to promote biodiversity conservation and sustainable resource use and management.

The Trust contributes to the Government’s Caring for our Country program. Caring for our Country is an Australian Government initiative that seeks to achieve an environment that is healthy, better protected, well-managed and resilient, and provides essential ecosystem services in a changing climate.

Caring for our Country commenced on 1 July 2008. It integrates delivery of the Australian Government’s previous natural resource management programs, including the Natural Heritage Trust, the National Landcare Program (appropriated to the Department of Agriculture, Fisheries and Forestry), the Environmental Stewardship Program and the Working on Country Indigenous land and sea ranger program. It also incorporates the delivery of a range of other natural resource management funding elements including Community Coastcare, World Heritage, regional investments and relevant 2007 election commitments.

Caring for our Country aims to achieve its strategic goal by focusing on six national priority areas:

National Reserve System

Biodiversity and Natural Icons

Coastal Environments and Critical Aquatic Habitats

Sustainable Farm Practices

Natural Resource Management in Northern and Remote Australia

Community Skills, Knowledge and Engagement

The continued existence of the Trust in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Trust’s administration and programs.

1.2 Basis of Preparation of the Financial StatementsThe financial statements are general purpose financial statements and are required by clause 1(b) of section 43 of the Natural Heritage Trust of Australia Act 1997.

The financial statements have been prepared in accordance with:

Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and

Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the Trust or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and EstimatesIn the process of applying the accounting policies listed in this note, the Trust has not made any judgements that could have a significant impact on the amounts recorded in the financial statements.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

The following amending standards were issued prior to the sign-off date, were applicable to the current reporting period and did not have a financial impact on the Trust. They are disclosed to provide users with information about the main requirements:

AASB 2011-9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income (issued September 2011)

This Standard amends AASB 101 Presentation of Financial Statements to require entities to group together items within other comprehensive income (OCI) on the basis of whether they will eventually be reclassified to the profit or loss section. Its aim is to provide users with clarity about the nature of items presented as OCI and their future impact. It also amends the standard title of the financial statement from ‘Statement of Comprehensive Income’ to ‘Statement of Profit or Loss and Other Comprehensive Income’, although use of alternative titles is allowed.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the Trust.

Future Australian Accounting Standard Requirements

The following new standards were issued by the Australian Accounting Standards Board prior to the sign-off date, which are expected to have a financial impact on the Trust for future reporting periods.

AASB 1055 Budgetary Reporting (issued March 2013)

The Australian Accounting Standards Board (AASB) has issued a new AASB 1055. This new Standard requires reporting of budgetary information and explanation of significant variance between actual and budgeted amounts by not-for-profit entities within the General Government Sector. The new Standard applies to reporting periods beginning on or after 1 July 2014.

AASB 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements (issued March 2013)

This Standard relocates the budgetary requirements currently in AASB 1049 Whole of Government and General Government Sector Financial Reporting into AASB 1055 to make it the complete reference on this topic.

The following revised and amending standards were issued by the Australian Accounting Standards Board prior to the sign-off date, which are not expected to have a financial impact on the Trust for future reporting periods. They are disclosed to provide users with information about the main requirements:

AASB 13: Fair Value Measurement (issued December 2012)

This Standard has been issued as a result of the International Accounting Standards Board (IASB)’s project to ensure consistency of fair value measurement and disclosure within financial statements. AASB 13 defines fair value, sets out a framework for measuring fair value, and requires disclosures about fair value measurements. The definition of fair value focuses on assets and liabilities because they are a primary subject of accounting measurement. However, the Standard does not specify when fair value should be applied. Guidance on when fair value measurements are to be applied is set out in other standards (e.g. AASB 116 Property, Plant and Equipment). Key features included in AASB 113 are the requirement to value non-financial assets at their highest and best use; identification of a principal (or most advantageous) market; and disclosure of all fair value measurements based on the fair value hierarchy.

AASB 2012-5: Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle (AASB 1, 101, 116, 132, 134 and Interpretation 2) (issued June 2012)

This Standard makes amendments arising from the IASB’s annual improvements process. The Standard clarifies that a balance sheet as at the beginning of the comparative period only needs to be presented where it is materially affected by a retrospective change resulting from an error, changed accounting policy or reclassification. When such a balance sheet is presented, notes to that balance sheet are not necessary, except as required by AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting period are not expected to have a future financial impact on the Trust.

1.5 Revenue

Interest Revenue

Under subsection 6(2) of the Natural Heritage Trust of Australia Act 1997, the Trust is entitled to receive interest income equal to the fixed-income percentage of the uninvested amount standing to the credit of the Trust’s Special Account as at the end of the financial year. For 2012-13, the fixed-income percentage is the percentage equal to the rate of interest earned by the Commonwealth as at the end of the financial year on deposits held with the Reserve Bank of Australia.

The funds held in the Official Public Account constitute ‘uninvested funds’ and as such are subject to the interest income provision. The interest is also applicable to all funds held in the Trust’s bank account excluding unpresented cheques, together with cash on hand and unbanked money.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement (Refer to Note 4A).

Revenue from Government

Under subsection 23 of the Natural Heritage Trust of Australia Act 1997, if another Act appropriates an amount from the Consolidated Revenue Fund for credit to the Trust’s Special Account, the amount is to be credited to the Special Account. In 2013, $149,017,000 (2012: $172,763,000) was credited to the Special Account from administered appropriations received by the Department of Sustainability, Environment, Water, Population and Communities under Appropriation Act (No.1) 2012-2013.

1.6 GainsResources Received Free of Charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

1.7 Transactions with the Government as OwnerThere were no transactions with the Government as owner during 2012-13 (2011-12: none).

1.8 CashCash is recognised at its nominal amount. Cash and cash equivalents include:

a) cash on hand;

b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value; and

c) cash in special account.

1.9 Financial AssetsThe Trust classifies its financial assets as ‘loans and receivables’.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Financial assets are recognised and derecognised upon trade date.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.10 Financial LiabilitiesThe Trust classifies its financial liabilities as ‘other financial liabilities’.

Financial liabilities are recognised and derecognised upon trade date.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.

These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.11 Contingent Liabilities and Contingent AssetsContingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.12 TaxationThe Trust is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

for receivables and payables.

Note 2: Events After the Reporting PeriodThere was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Trust.

Note 3: Expenses

  2013   2012  $'000   $'000Note 3A: Supplier             Goods and services      Implementation costs1 42,100   39,954Contractors 4,050   6,137General goods and services 278   3,267Total goods and services 46,428   49,358       Goods and services are made up of:      Provision of goods – related entities 47   149Provision of goods – external parties 9   10Rendering of services – related entities 43,596   44,718Rendering of services - external parties 2,776   4,481Total goods and services 46,428   49,358       Total supplier expenses 46,428   49,358

1. Represents funding provided to the Department of Sustainability, Environment, Water, Population and Communities and the Department of Agriculture, Fisheries and Forestry to cover costs associated with implementing the Trust’s activities.

Note 3B: Grants             Public sector:      

Australian Government entities (related entities) 5,399   11,498State and Territory Governments 20,501   43,152Local Governments 7,832   8,206

Private sector:      Non-profit organisations 70,216   66,132Profit making entities 11,533   8,967Individuals 39   108Overseas -   -Universities 368   3,602

Total grants 115,888   141,665

Note 3C: Write-Down and Impairment of Assets             Asset write-downs and impairments from:      

Impairment on grants and other receivables 42   197Total write-down and impairment of assets 42   197

Note 3D: Other Expenses             Sponsorships 145   29Total other expenses 145   29

Note 4: Income

  2013   2012  $'000   $'000OWN-SOURCE REVENUE             Note 4A: Interest             Deposits 10,631   13,505Total interest 10,631   13,505

Note 4B: Other Revenue             Repayments of prior years grants expenditure 369   341Total other revenue 369   341

GAINS             Note 4C: Other Gains             Resources received free of charge 65   65Total other gains 65   65

REVENUE FROM GOVERNMENT             Note 4D: Revenue from Government             Appropriations:      

Other - amounts credited to special account 149,017   172,763Total revenue from Government 149,017   172,763

Note 5: Financial Assets  2013   2012  $'000   $'000Note 5A: Cash and Cash Equivalents             Cash on hand or on deposit -   -Total cash and cash equivalents -   -

Note 5B: Trade and Other Receivables             Appropriations receivable:      

For existing programs 386,598   385,868Total appropriations receivable 386,598   385,868       Other receivables:      

GST receivable from the Australian Taxation Office 155   2,655Interest 10,631   13,505Grants and other receivables 152   65

Total other receivables 10,938   16,225Total trade and other receivables (gross) 397,536   402,093       Less impairment allowance account      

Grants and other receivables (46)   -Total impairment allowance account (46)   -Total trade and other receivables (net) 397,490   402,093       Receivables are expected to be recovered in:      

No more than 12 months 397,490   402,093Total trade and other receivables (net) 397,490   402,093       Receivables are aged as follows:      

Not overdue 397,429   402,041Overdue by:      

0 to 30 days 25   6More than 90 days 82   46

Total receivables (gross) 397,536   402,093       The impairment allowance account is aged as follows:      

Overdue by:      More than 90 days (46)   -

Total impairment allowance account (46)   -        

Credit terms for grants and other receivables were within 30 days (2012: 30 days).

Reconciliation of the Impairment Allowance Account:         Movements in relation to 2013    

 

Grants and other

receivables Total  $'000 $'000Opening balance - -

Amounts written off - -Amounts recovered and reversed - -Increase recognised in net surplus 46 46

Closing balance 46 46     Movements in relation to 2012    

 

Grants and other

receivables Total  $'000 $'000Opening balance - -

Amounts written off - -Amounts recovered and reversed - -Increase recognised in net surplus - -

Closing balance - -

Note 6: Payables  2013   2012  $'000   $'000Note 6A: Suppliers             Trade creditors and accruals 946   2,736Total supplier payables 946   2,736       Supplier payables expected to be settled within 12 months:      

External parties 946   2,736Total 946   2,736Total supplier payables 946   2,736

Settlement was usually made within 30 days.

Note 6B: Grants             Public sector:      

Australian Government entities (related entities) 1,331   -State and Territory Governments 797   385Local Governments 210   -

Private sector:      Non-profit organisations 1,453   1,713Individuals -   -Other 196   110Universities 9   -

Total grants 3,996   2,208       Total grants are expected to be settled in:      

No more than 12 months 3,996   2,208Total grants 3,996   2,208

Settlement was usually made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility.

Note 6C: Other Payables             GST payable to OPA 244   2,424Total other payables 244   2,424       Total other payables are expected to be settled in:      

No more than 12 months 244   2,424Total other payables 244   2,424

Note 7: Cash Flow Reconciliation  2013   2012  $'000   $'000Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement             Cash and cash equivalents as per:      

Cash flow statement -   -Balance sheet -   -

Difference -   -       Reconciliation of net cost of services to net cash from operating activities:    

Net cost of services (151,438)   (177,338)Add revenue from Government 149,017   172,763

       Changes in assets / liabilities      

(Increase) / decrease in net receivables 4,603   12,108(Increase) / decrease in other financial asset -   -Increase / (decrease) in supplier payables (1,790)   2,260Increase / (decrease) in grants payable 1,788   (9,186)Increase / (decrease) in other payables (2,180)   (607)

Net cash from (used by) operating activities -   -

Note 8: Contingent Assets and Liabilities

Quantifiable ContingenciesThere are no quantifiable contingencies in either the current or the immediately preceding reporting period, therefore there is no Schedule for such items.

Unquantifiable ContingenciesThere are no unquantifiable contingencies in either the current or immediate preceding reporting period.

Significant Remote ContingenciesThere are no remote contingencies in either the current or immediate preceding reporting period.

Note 9: Remuneration of Auditors

  2013   2012  $'000   $'000Financial statement audit services were provided free of charge to the Trust by the Australian National Audit Office (ANAO).             Fair value of the services provided      

Financial statement audit services 65   65  65   65

No other services were provided by the auditors of the financial statements.

Note 10: Financial Instruments

  2013   2012  $'000   $'000Note 10A: Categories of Financial Instruments             Financial Assets      Loans and receivables:      

Grants and other receivables 106   65Total 106   65Carrying amount of financial assets 106   65       Financial Liabilities      At amortised cost:      

Trade creditors and accruals 946   2,736Grant payables 3,996   2,208

Total 4,942   4,944Carrying amount of financial liabilities 4,942   4,944

Note 10B: Net Income and Expense from Financial Assets             Loans and receivables      

Impairment 42   197Net loss from loans and receivables 42   197Net loss from financial assets 42   197

The Trust did not have any income and expenses from financial liabilities (2012: Nil).

Note 10C: Fair Value of Financial Instruments                 The fair value of all financial assets and liabilities approximate their carrying amounts.

Note 10D: Credit Risk                     

The Trust was exposed to minimal credit risk as loans and receivables were cash, grants and other receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of grants and other receivables (2013: $152,000 and 2012: $65,000). The Trust had assessed the risk of the default on payment and had allocated $46,000 in 2013 (2012: $0) to an impairment allowance account.

The Trust managed its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The Trust held no collateral to mitigate against credit risk. In addition, the Trust had policies and procedures that guided employees on debt recovery techniques that were to be applied.

The following table illustrates the Trust's gross exposure to credit risk, excluding any collateral or credit enhancements.        2013 2012        $'000 $'000Financial assets          Grants and other receivables       106 65Total       106 65           Credit quality of financial instruments not past due or individually determined as impaired  

   

Not past due nor

impaired

Not past due nor

impaired

Past due or

impaired

Past due or

impaired    2013 2012 2013 2012    $'000 $'000 $'000 $'000Grants and other receivables   45 13 61 52Total   45 13 61 52           Ageing of financial assets that were past due but not impaired for 2013      0 to 30 31 to 60 61 to 90 90+    days days days days Total  $'000 $'000 $'000 $'000 $'000Grants and other receivables 25 - - 36 61Total 25 - - 36 61           Ageing of financial assets that were past due but not impaired for 2012        0 to 30 31 to 60 61 to 90 90+    days days days days Total  $'000 $'000 $'000 $'000 $'000Grants and other receivables 6 - - 46 52Total 6 - - 46 52

Note 10E: Liquidity Risk         

The Trust’s financial liabilities were trade creditors, accruals and grants payables. The exposure to liquidity risk was based on the notion that the Trust will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the Trust is appropriated funding from the Australian Government and the Trust managed its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Trust had policies in place to ensure timely payments were made when due and has no past experience of default.     Maturities for non-derivative financial liabilities 2013      Within 1    year Total  $'000 $'000Trade creditors and accruals 946 946Grant payables 3,996 3,996Total 4,942 4,942     Maturities for non-derivative financial liabilities 2012      Within 1    year Total  $'000 $'000Trade creditors and accruals 2,736 2,736Grant payables 2,208 2,208Total 4,944 4,944

Note 10F: Market Risk             

The Trust held basic financial instruments that did not expose the Trust to certain market risks, such as 'Currency risk', 'Interest rate risk' and 'Other price risk'.

Note 11: Financial Assets Reconciliation

    2013   2012    $'000   $'000Financial assets Notes               Total financial assets as per balance sheet   397,490   402,093Less: non-financial instrument components        

Appropriation receivables 5B 386,598   385,868GST receivable from the ATO 5B 155   2,655Interest receivable 5B 10,631   13,505

Total non-financial instrument components   397,384   402,028Total financial assets as per financial instruments note 10A 106   65

Note 12: Special Accounts

Note 12A: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance and Deregulation (DoFD) provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

The Trust had a plan to review exposure to risks of not complying with section 83 of the Constitution. The plan involved determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions required for the payments and assessing the extent to which the existing payment systems and processes satisfy those conditions.

As at 30 June 2013 this work had been completed in respect of the Natural Heritage Trust of Australia Special Account. No issues of non-compliance with Section 83 were identified.

In 2012-13, following the receipt of additional legal advice, DoFD advised all agencies that there could be breaches of Section 83 under certain circumstances with the management of Goods and Services Tax payments made pursuant to the Financial Management and Accountability Act 1997 and with payments made under the Remuneration Tribunal Act 1973 and the Long Service Leave (Commonwealth employees) Act 1976.

The Trust has reviewed its processes and controls over the management of Goods and Services Tax payments made pursuant to the Financial Management and Accountability Act 1997 to minimise the possibility for future breaches as a result of these payments. The Trust has determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to the Trust. The Trust is not aware of any specific breaches of Section 83 in respect of these items. The Trust does not make any payments under the Remuneration Tribunal Act 1973 or the Long Service Leave (Commonwealth employees) Act 1976.

Note 12B: Special Accounts ('Recoverable GST exclusive')       NHT Account1

 2013 2012$'000 $'000

Balance brought forward from previous period 385,868 391,885Increases:    

Amounts credited under section 6(2) of the NHT Act 1997 13,505 18,615Amounts credited under section 23 of the NHT Act 1997 149,017 172,763Other receipts 292 824

Total increases 162,814 192,202Available for payments 548,682 584,087Decreases:    

Administered    Payments made - suppliers (47,953) (47,232)Payments made - grants (113,972) (150,972)Payments made - other (159) (15)Total administered decreases (162,084) (198,219)

Total decreases (162,084) (198,219)Total balance carried to the next period 386,598 385,868

1. Appropriation: Financial Management and Accountability Act 1997 section 21.

Establishing Instrument: Natural Heritage Trust of Australia Act 1997 section 4.

Purpose: The purposes of the reserves are as follows:

(a) the National Vegetation initiative;

(b) the Murray-Darling 2001 Project;

(c) the National Land and Water Resources Audit;

(d) the National Reserve System;

(e) the Coasts and Clean Seas Initiative;

(f) environmental protection (as defined by section 15 of the Act);

(g) supporting sustainable agriculture (as defined by section 16 of the Act);

(h) natural resources management (as defined by section 17 of the Act);

(i) a purpose incidental or ancillary to any of the above purposes;

(j) the making of grants of financial assistance for any of the above purposes; and

(k) an accounting transfer purpose (as defined by section 18 of the Act).

In accordance with section 42 of the Natural Heritage Trust of Australia Act 1997, the Trust has ensured that the balance of the account has not fallen below the base amount.

Note 13: Compensation and Debt Relief

  2013   2012  $   $No ‘Act of Grace payments' were expensed during the reporting period (2012: No expenses). -   -       

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: No waivers). -   -       

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: No payments). -   -       No ex-gratia payments were provided for during the reporting period (2012: No payments). -   -       

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: No payments). -   -

Note 14: Reporting of OutcomesThe Trust's Income, Expenses, Assets and Liabilities are part of the Department of Sustainability, Environment, Water, Population and Communities Outcome

Glossary of terms, abbreviations and acronymnsTERM MEANINGAdditional estimates A process through which the parliament may appropriate more funds to

portfolios if the amounts appropriated at Budget time are insufficient. There can also be supplementary additional estimates.

Administered items / administered appropriations Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Administered expenses include grants, subsidies and benefits and may fund the delivery of third party outputs. For example, the department administers appropriations for the Australian Government’s Natural Heritage Trust to provide grants. This annual report refers to appropriations for administered items as ‘administered appropriations’.

Administrative Arrangements Orders (AAOs) AAOs formally allocate executive responsibility among ministers. They set out which matters and legislation are administered by which department or portfolio. AAOs are reissued or amended to take into account changes in the structure of government.

Appropriations Authorisations by the parliament to spend moneys from the Consolidated Revenue Fund. Two appropriation Bills are introduced into parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates.

Avgas Aviation-grade leaded petrol, usually containing levels of lead between 0.56 g/L and 0.85 g/L.

Basin Plan The Water Act 2007 requires that the Murray–Darling Basin Authority (MDBA) develops and oversees the Basin Plan for the integrated management of Basin water resources. The Basin Plan provides limits on the quantity of water that may be taken from the Basin water resources.

Basin states The Basin states are Queensland, New South Wales, Victoria, South Australia and the Australian Capital Territory. The Murray–Darling Basin Ministerial Council was established under the Murray–Darling Basin Agreement, Schedule 1 to the Water Act 2007. Membership of the ministerial council comprises the Commonwealth water minister, who also chairs the ministerial council, and one minister from each of the Basin states (and one territory). The Murray–Darling Basin Authority manages the water resources of the Murray–Darling Basin in conjunction with the Basin states through a number of programs.

Biodiscovery The examination of biological resources (e.g. plants, animals, microorganisms) for characteristics that may have wider application and/or commercial value.

Biodiversity In essence this means the variety of life. The term ‘biodiversity’ is a contraction of, and synonymous with, ‘biological diversity’. Biological diversity is defined in Article 2 of the Convention on Biological Diversity to mean ‘the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems’ (a similar definition appears in the glossary to the Ramsar Convention on wetlands).

Bioregion A geographic area characterised by a combination of physical and biological characteristics—for example, terrain, climate and ecological communities. The glossary of terms related to the Convention on Biological Diversity provides the following definition: ‘a territory defined by a combination of biological, social, and geographic criteria, rather than geopolitical considerations; generally, a system of related, interconnected ecosystems’. The term ‘bioregion’ is a contraction of biogeographic region and is usually synonymous with that term. Bioregions are a useful way to analyse patterns of biodiversity. The definition of a particular bioregion depends on the scale at which its characteristic features are measured.

Biota In ecology, the plant and animal life of a region.

Biotechnology Any technology that introduces organisms or parts of organisms into industrial processes, agriculture or pharmacology or into services such as waste recycling.

Bycatch Accidental or incidental catch taken by fishers (non-target species).

Carbon credit A tradeable unit corresponding to one metric tonne of carbon dioxide equivalent emissions. Participants in the Carbon Farming Initiative will be issued with Australian Carbon Credit Units.

Carbon market A generic term for a trading system in which governments or private organisations may buy and sell carbon credits in an effort to meet limits on emissions.

Cetaceans Whales, dolphins and porpoises.

Commonwealth Heritage List Comprises places that are owned or controlled by the Australian Government and have natural, Indigenous and/or historic heritage values under the EPBC Act. This includes places connected to defence, communications, customs and other government activities that also reflect Australia’s development as a nation.

Commonwealth protected area A marine or terrestrial area protected under Commonwealth legislation, including a World Heritage Area, National Heritage place, Marine Protected Area, Ramsar Wetland, Indigenous Protected Area and other areas within the National Reserve System.

Controlled substance licence A licence required to manufacture, import or export methyl bromide, hydrochlorofluorocarbons, hydrofluorocarbons and perfluorocarbons.

Corporate governance The process by which agencies are directed, controlled and held to account. It is generally understood to encompass authority, accountability, stewardship, leadership, direction and control.

Cryosphere Refers collectively to the portions of the Earth where water is in solid form. It includes snow cover, floating ice, glaciers, ice caps, ice sheets, seasonally frozen ground and perennially frozen ground (permafrost).

DCN Derived cetane number.

Dendroglyphs Carved burial and initiation trees.

Departmental items/ departmental appropriations Assets, liabilities, revenues and expenses that are controlled by agencies in providing their 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. This annual report refers to appropriations for departmental items as ‘departmental appropriations’.

Desalination The process of removing excess salt and other minerals from water in order to obtain freshwater suitable for human consumption and other purposes.

DIPE Di-isopropyl ether.

Discretionary grants Payments made to particular applicants, either organisations or individuals, at the discretion of the portfolio minister or the paying agency. The definition of discretionary grants does not include service agreements, which are treated as contracts rather than grants; intra-Australian Government agency funding; payments to states and other government agencies (specific purpose payments) and intergovernment transfers; payments to overseas aid organisations; government income support programs; emergency payment programs; grants under commercial industry development programs (including to increase research and development, and assist exporters); grant programs specifically for educational institutions and medical research institutions; grants approved by Australian Government bodies outside the general government sector; or payments of a specific sum of money or a fixed percentage of shared funding to an organisation or individual that are made according to a Cabinet decision, a letter from the Prime Minister or a determination of a ministerial council.

Ecological communities Naturally occurring group of species inhabiting a common environment; interacting with each other, especially through food relationships; and relatively independent of other groups. Ecological communities may vary in size and larger ones may contain smaller ones. In the EPBC Act they are defined as assemblages of native species that inhabit particular areas in nature.

Ecologically sustainable The EPBC Act defines ecologically sustainable use of natural resources as ‘use of the natural resources within their capacity to sustain natural processes while maintaining the life-support systems of nature and ensuring that the benefit of the use to the present generation does not diminish the potential to

meet the needs and aspirations of future generations’.

Ecosystem A dynamic combination of plant, animal and micro-organism communities and their non-living environment (e.g. soil, water and the climatic regime) interacting as a functional unit. Examples of types of ecosystems include forests, wetlands, grasslands and tundra.

Ecotoxicology Seeks to understand how toxic chemicals (toxicants) affect the structure and function of natural ecological systems (populations, communities and ecosystems). The Environmental Research Institute of the Supervising Scientist ecotoxicology program investigates the risks and impacts of pollutants (toxicants) to the highly valued wetland ecosystems of northern Australia.

Endemic species An animal or plant species whose habitat is restricted to a particular area or space on the globe. This general term is used for a range of creatures including mammal species, reptile species, bird species and insect species. Details on an endemic species may differ depending on what kind of animal or plant is being referenced. Generally, an endemic species is a focus point for helping to protect biodiversity in a given environment.

Enforceable undertaking May be applied under section 486DA of the EPBC Act where the minister considers that an action contravenes a civil penalty provision of Part 3 of the Act. The minister may accept a written undertaking by a person to pay a specified amount within a specified period to the Commonwealth, or another specified person, to protect and conserve the matter covered by the civil penalty provision.

Environmental impact assessment An assessment of the possible impact of a proposed action undertaken to enable environment and heritage protection and biodiversity conservation.

Environmental water Water provided for the environment to sustain and, where necessary, restore ecological processes and biodiversity of water dependent ecosystems.

Essential uses licence May be granted under the EPBC Act for the import, export or manufacture of chlorofluorocarbons (CFC), halons, CH3CCl3 (methyl chloroform), CCl4 (carbon tetrachloride) and bromochloromethane (BCM) for uses that meet a very limited range of essential use criteria, including laboratory and analytical use. Essential uses licences are subject to quantitative restrictions and reporting requirements.

Expenses Total value of all of the resources consumed in producing goods and services.

Finalised Priority Assessment List (FPAL)

The list of nominated species, ecological communities and key threatening processes that have been approved for assessment by the minister for a particular assessment year (1 October – 30 September). Each item included on the FPAL is assessed by the Threatened Species Scientific Committee against a set of criteria. At the completion of the assessment the committee provides a ‘listing advice’ to the minister for decision, as well as a ‘conservation advice’ that outlines immediate conservation priorities.

Financial results The results shown in the financial statements of an agency.

Flow controller A device designed to regulate the flow of water so as to maintain a constant flow rate over a given range of pressures.

Forward osmosis The passage of a solvent through a semi-permeable partition into a more concentrated solution.

Geographic information system (GIS) An information system for capturing, storing, analysing, managing and presenting data that are spatially referenced (linked to location). GIS applications are tools that allow users to create interactive queries (user created searches), analyse spatial information, edit data, maps and present the results of all these operations.

Gigalitre (GL) One gigalitre is equal to 1000 megalitres and one megalitre is equal to one million litres.

g/L Grams per litre.

Greenhouse gases Heat-trapping gases that are a natural part of the atmosphere. They maintain higher temperatures at the earth’s surface than would otherwise be possible. This phenomenon is called the greenhouse effect. Water vapour is the most abundant greenhouse gas. Its concentration is highly variable and human activities have little direct impact on its amount in the atmosphere. Humans have most impact on carbon dioxide, methane and nitrous oxide. Various

artificial chemicals such as halocarbons also make a small contribution to climate change. The earth’s climate is warming. Scientists agree that some of this warming is due to human activities—particularly burning fossil fuels (coal, oil and natural gas) and land clearing—increasing the level of greenhouse gases in the atmosphere.

Hydrological connectivity The ability of water to move from one location to another, thereby facilitating the transfer of matter, energy and organisms.

Indigenous Protected Area (IPA) An area of Indigenous-owned land or sea where Traditional Owners have entered into an agreement with the Australian Government to promote biodiversity and cultural resource conservation.

Invasive species A species that occurs beyond its accepted normal distribution and which threatens valued environmental, agricultural, marine or social resources by the damage it causes.

kg/m3 Kilograms per metre cubed.

Machinery of government (MOG) changes Describes a variety of organisational or functional changes affecting the Commonwealth. Some common examples are: changes to the Administrative Arrangements Order following a prime ministerial decision to abolish or create a department or to move functions/responsibilities between epartments/agencies; creation of a new statutory agency or executive agency, or abolition of such agencies; movement of functions into, or out of, the Australian Public Service.

Marine benthic environment Refers to all marine organisms living upon or in the bottom of the ocean.

Marine protected area Parts of the ocean that are managed specifically to protect and maintain marine biodiversity and cultural heritage. These areas are reserved by law or other effective means to protect part or all of the marine environment (also known as marine reserve or marine park).

Matters of national environmental significance (MNES)

The matters of national environmental significance protected under the EPBC Act are listed threatened species and communities; listed migratory species; Ramsar wetlands of international importance; Commonwealth marine environment; World Heritage properties; National Heritage places; the Great Barrier Reef Marine Park; and nuclear actions.

Megalitres (ML) One megalitre is equal to one million litres.

mg/kg Milligrams per kilogram.

m/m Mass by mass.

MTBE Methyl tertiary butyl ether.

National Heritage List A written record of the places and their heritage values that the minister is satisfied have one or more National Heritage values.

Nutrient cycling The cycling through an ecosystem of minerals, compounds or elements that promote biological growth or development.

Operating costs Expenses associated with the day-to-day operation of the department.

Outcomes The intended results, impacts or consequences of actions by the government on the Australian community. They are listed in agencies’ portfolio budget statements and portfolio additional estimates statements.

Ozone depleting substances (ODSs) Substances that deplete the earth’s protective ozone layer. They are widely used in refrigerators, air conditioners, fire extinguishers, dry cleaning, electronic equipment, as solvents for cleaning and as agricultural fumigants. Ozone-depleting substances include chlorofluorocarbons, halon, hydrochlorofluorocarbons and methyl bromide. Countries have agreed to phase out ozone-depleting substances through the Montreal Protocol on Substances that Deplete the Ozone Layer. Some industries that use ozone-depleting substances are replacing those substances with synthetic greenhouse gases.

Persistent organic pollutants Hazardous and environmentally persistent substances that can be transported between countries by the earth’s oceans and atmosphere. The substances bioaccumulate and have been traced in the fatty tissues of humans and other animals. Persistent organic pollutants include dieldrin, polychlorinated byphenyls, dichlorodiphenyltrichloroethane (DDT), dioxins and furans. Countries have agreed to control the manufacture and trade of persistent

organic pollutants through the Stockholm Convention on Persistent Organic Pollutants.

Portfolio budget statements (PBS) Detailed information on the resources available and the planned performance of each agency within a portfolio. The PBS includes expenditure and revenue estimates for the current financial year, the budget year and the three forward years. The PBS informs senators, members of parliament and the public of the proposed allocation of resources to government outcomes. The PBS provides an important means by which the executive government remains accountable to the parliament.

Pre-charged equipment licence A licence is required to import into Australia refrigeration and/or air-conditioning equipment that contains a hydrofluorocarbon (HFC) or hydrochlorofluorocarbon (HCFC) refrigerant.

Procurement Encompasses the whole process of acquiring property and services. Procurement involves the processes of developing a business case, including risk assessment, identifying and evaluating alternative solutions, approaching the market, assessing tenders or quotes, contract award, delivery of and payment for the property and services and, where relevant, the ongoing management of a contract and consideration of options related to the contract. Procurement also extends to the ultimate disposal of property at the end of its useful life.

Product stewardship Recognises that manufacturers, importers and others who benefit from making and selling a product share some responsibility for the environmental impacts of that product.

Programs Agencies deliver programs that are the government actions taken to deliver the stated outcomes. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

Ramsar listing Denotes the inclusion of a wetland area on the List of Wetlands of International Importance—an inventory prescribed by the Convention on Wetlands (more commonly known as the Ramsar Convention, which was signed in Ramsar, Iran, in 1971). As one of the original contracting parties to the Convention, Australia has designated 65 sites for this list.

Remnant vegetation One or more areas of largely intact (structurally and/or compositionally) native vegetation which remains after the removal (usually by clearing) of parts of a natural area.

Revenue The total value of resources earned or received to cover the production of goods and services.

Riparian Vegetation situated on the banks of watercourses. In central Australia, where watercourses are usually dry, riparian communities often extend across the bed of the creek or river. The major threats to riparian communities are introduced weeds and fire.

River benches A terrace or step that extends along the side of a valley and represents a former level of the valley floor. It generally has a flat top made up of sedimentary deposits and a steep fore edge and it may be the remains of an old floodplain, cut through by the river and left standing above the present floodplain level.

Sclerophyll A typically Australian vegetation type having plants with hard, short and often spiky leaves. They occur in a band around Australia from southern Queensland to the south-west of Western Australia. Sclerophyll is a Greek word meaning ‘hard-leaved’ (sclero = hard; phyllon = leaf). The hardness in the leaves comes from lignin and prevents the leaves from wilting in dry conditions. However, Australian sclerophyllous plants evolved in response to low levels of soil phosphorus, not to low levels of moisture.

Shipping days 24-hour period during which a ship is under charter to the Australian Antarctic Division.

Special appropriations Moneys appropriated by the parliament in an Act separate to an annual Appropriation Act, where the payment is for a specified amount. For example, the department receives special appropriations under laws that require industry to pay a levy on the import of ozone-depleting substances. Special appropriations are not subject to annual budget control by the parliament, unlike the annual appropriations.

Sustainable diversion limits The maximum long-term annual average quantities of water that can be taken, on a sustainable basis, from Murray–Darling Basin water resources

as a whole and from the water resources, or particular parts of the water resources, of each water resource plan area in the Basin.

Synthetic greenhouse gases (SGGs) Greenhouse gases that are either used in industrial applications or emitted as a by-product of industrial activity. They include hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. Some industries that use ozone-depleting substances are replacing those substances with synthetic greenhouse gases.

TBA Tertiary butyl alcohol.

Threat abatement plan Threat abatement plans are developed when they are deemed by the minister to be a feasible, efficient and effective way of abating a listed key threatening process, having regard to the advice of the Threatened Species Scientific Committee and other nominated persons or bodies.

Threatened species Listed threatened species (together with listed threatened ecological communities) form one of the eight matters of national environmental significance protected by the EPBC Act. Listed threatened species are categorised under the Act as either ‘extinct’, ‘extinct in the wild’, ‘critically endangered’, ‘endangered’, ‘vulnerable’ or ‘conservation dependent’.

v/v Volume by volume.

Used substances licence A licence that may be granted under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 for the import or export of used or recycled chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), halons, carbon tetrachloride, CH3CCl3 (methyl chloroform), methyl bromide and bromochloromethane (BCM). The import and export of these substances has been banned under the Act since 1996 without a used substances licence.

Water buyback Under the Restoring the Balance in the Murray–Darling Basin program, the Australian Government is buying permanent water entitlements from irrigators for the environment. The water allocated to the entitlements will be used to improve the health of the Murray–Darling Basin’s rivers and wetlands.

World Heritage List A list of properties with cultural heritage and/or natural heritage which the World Heritage Committee considers as having outstanding universal value.

ACRONYM MEANINGAAD Australian Antarctic Division

AAT Administrative Appeals Tribunal

ABBBS Australian Bird and Bat Banding Scheme

ABRS Australian Biological Resources Study

AELERT Australasian Environmental Law Enforcement and Regulators Network

ANAO Australian National Audit Office

APEC Asia–Pacific Economic Cooperation

AQIS Australian Quarantine and Inspection Service

ARC Australian Refrigeration Council

B5 Blends of diesel and biodiesel where the biodiesel component is no greater than five per cent

B20 Blends of diesel and biodiesel where the biodiesel component is no greater than 20 per cent

CA Controlled action

CCAMLR Commission for the Conservation of Antarctic Marine Living Resources

CEWH Commonwealth Environmental Water Holder

CFC Chlorofluorocarbon

CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora

CMA Catchment Management Authority

CMP Conservation Management Plan

COAG Council of Australian Governments

CSG Coal seam gas

CSIRO Commonwealth Scientific and Industrial Research Organisation

DAFF Department of Agriculture, Fisheries and Forestry

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

EEZ Exclusive economic zone

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

EPHC Environment Protection and Heritage Council

ERISS Environmental Research Institute of the Supervising Scientist

FQS Act Fuel Quality Standards Act 2000

GL Gigalitre

HBFC Hydrobromofluorocarbon

HCFC Hydrochlorofluorocarbon

HFC Hydrofluorocarbon

IPA Indigenous Protected Area

IWC International Whaling Commission

KPI Key performance indicator

LNG Liquefied natural gas

MDBA Murray–Darling Basin Authority

MER Monitoring, evaluation and reporting

MTBE Methyl tertiary butyl ether

NEPM National Environment Protection Measure

NHT Natural Heritage Trust

NRSMPA National Representative System of Marine Protected Areas

ODP Ozone-depleting potential

PAES Portfolio additional estimates statements

PBS Portfolio budget statements

PFC Perfluorocarbon

PSO Act Product Stewardship (Oil) Act 2000

RAC Refrigeration and air conditioning

SCEW Standing Council on Environment and Water

SGG Synthetic greenhouse gas

SSD Supervising Scientist Division

TBA Tertiary butyl alcohol

TSSC Threatened Species Scientific Committee

UNEP United Nations Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organisation

WELS Water Efficiency Labelling and Standards

WTO World Trade Organization

List of requirementsPART OF REPORT

DESCRIPTION REQUIREMENT PAGE NUMBER

Letter of transmittal Mandatory 9

Table of contents Mandatory 1

Index Mandatory 470

Glossary Mandatory 453

Contact officer(s) Mandatory 3

Internet home page address and Internet address for report

Mandatory 3

Review by secretary

Review by departmental secretary Mandatory 4,5

Summary of significant issues and developments Suggested 4–8

Overview of department’s performance and financial results

Suggested 4–8,12

Outlook for following year Suggested 8, 18, 21, 25, 27, 30, 39–44, 47, 55, 59, 78, 108,

113–114, 147, 169, 196, 221 and 263

Significant issues and developments—portfolio

Portfolio departments—suggested

3, 4–8, 14–44 and 84–110

Departmental overview

Role and functions Mandatory 10 and 11

Organisational structure Mandatory 10 and 11

Outcome and program structure Mandatory 10

Where outcome and program structures differ from PB statements/PAES or other portfolio statements accompanying any other additional appropriation Bills (other portfolio statements), details of variation and reasons for change

Mandatory n/a

Portfolio structure Portfolio departments—mandatory

11

Report on performance

Review of performance during the year in relation to programs and contribution to outcomes

Mandatory 14–318

Actual performance in relation to deliverables and KPIs set out in PB Statements/PAES or other portfolio statements

Mandatory 14–318

Where performance targets differ from the PBS/PAES, details of both former and new targets, and reasons for the change

Mandatory 14–318

Narrative discussion and analysis of performance Mandatory 14–318

Trend information Mandatory 14–318

Significant changes in nature of principal functions/services

Suggested 199 and 202

Performance of purchaser/provider arrangements If applicable, suggested

196

Factors, events or trends influencing departmental performance

Suggested 14–318

Contribution of risk management in achieving objectives Suggested 151–153

Social inclusion outcomes If applicable, mandatory

189–191

Performance against service charter customer service standards, complaints data and the department’s response to complaints

If applicable, mandatory

192–193

Discussion and analysis of the department’s financial performance

Mandatory 198–207

Discussion of any significant changes from the prior year, from budget or anticipated to have a significant impact on future operations

Mandatory 198–207

Agency resource statement and summary resource tables by outcomes

Mandatory 308–318

Management and accountability

Corporate governance

Agency heads are required to certify that their agency comply with the Commonwealth Fraud Control Guidelines

Mandatory 9 and 152

Statement of the main corporate governance practices in place

Mandatory 149–153

Names of the senior executive and their responsibilities Suggested 11

Senior management committees and their roles Suggested 150

Corporate and operational planning and associated performance reporting and review

Suggested 149–150

Approach adopted to identifying areas of significant financial or operational risk

Suggested 151–152

Policy and practices on the establishment and maintenance of appropriate ethical standards

Suggested 188

How nature and amount of remuneration for SES officers is determined

Suggested 188

External scrutiny

Significant developments in external scrutiny Mandatory 153–158

Judicial decisions and decisions of administrative tribunals

Mandatory 153

Reports by the Auditor-General, a parliamentary committee or the Commonwealth Ombudsman

Mandatory 153–158

Management of human resources

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory 185–191

Workforce planning, staff turnover and retention Suggested 186–187

Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and AWAs

Suggested 187

Training and development undertaken and its impact Suggested 187–188

Work health and safety performance Suggested 295–297

Productivity gains Suggested 185

Statistics on staffing Mandatory 291–294

Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs

Mandatory 187

Performance pay Mandatory 188

Assets management Assessment of effectiveness of assets management If applicable, Mandatory

204–205

Purchasing Assessment of purchasing against core policies and principles

Mandatory 196

Consultants The annual report must include a summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website.

Mandatory 196

Australian National Audit Office access clauses

Absence of provisions in contracts allowing access by the Auditor-General

Mandatory 197

Exempt contracts Contracts exempt from the AusTender Mandatory 196

Financial statements Financial statements Mandatory 319–452

Other mandatory information

Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011)

Mandatory 295–297

Advertising and market research (section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 299–300

Ecologically sustainable development and environmental performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 159–184

Compliance with the agency’s obligations under the Carer Recognition Act 2010

If applicable, mandatory

n/a

Grant programs Mandatory 298

Disability reporting—explicit and transparent reference to agency-level information available through other reporting mechanisms

Mandatory 188–189

Information Publication Scheme statement

Mandatory 301

Spatial reporting—expenditure by program between regional and non regional Australia

If applicable, mandatory

206–207

Correction of material errors in previous annual report If applicable, mandatory

302

List of requirements Mandatory 465–469

IndexAabbreviations, 462–464Aboriginal and Torres Strait Islanders see Indigenous Australiansaccess clauses, ANAO, 197actions on Commonwealth Land, 235–236Adelaide Desalination Plant, 74–75, 154administered assets, 12administered funds, 197administrative tribunal decisions, 153advertising and marketing expenditure, 299–300advice under section 160, EPBC Act, 249advisory groups to CEWO, 122Agency Resources Statement, 308–309Agreement on the Conservation of Albatrosses and Petrels, 65air conditioning and refrigeration, 284air quality, 51

deliverables on, 58parliamentary committee reports, 157

Alligator Rivers Region, 85, 88–89Amaltal Explorer, 63amphibians, 25, 262animal refuges, 16annual report guide, 2–3Antarctic Airlink program, 66Antarctic Treaty, 63, 65, 229, 232Antarctica

deliverables, 65–67environmental protection, 67fishing, 63research voyages, 62shipping and air services, 67, 68

Antarctica outcome, 62–68key achievements, 62–63objectives, 62responsibility for, 62results, 65–68strategies, 63–64

APS Values and Code of Conduct, 185, 188assessment bilateral agreements, 232assessments and approvals, EISs, 234, 248–250asset management, 204assets and liabilities, 331Atlas of Living Australia, 20Audit Committee, Departmental, 150, 153

meetings, 150membership, 151

Auditor-General’s reports, 154–155Aurora Australis, 62, 66Austender, 196Australian Antarctic Division, 64

environmental performance, 177–184responsibilities, 62

Australian Antarctic Strategic Plan 2011–12 to 2020–21, 64Australian Barcode of Life Network, 20Australian Biological Resources Study, 15, 28

grants funded by, 16strategies, 20

Australian Customs and Border Protection Service, 22, 95, 97Australian Fisheries Management Authority (AFMA), 22, 228

vessel monitoring system, 22Australian Heritage Council, 214, 215, 257Australian National Audit Office (ANAO), 12, 151

access clauses, 197audit opinion, 12reports, 119reviews, 74–75

Australian Pesticides and Veterinary Medicine Authority, 52Australian Petroleum Production and Exploration Association, 16autogas see liquefied petroleum gasawards, 190

BB20 see biodiesel blended fuelbalance sheets, 324, 431beak and feather disease, 20, 260bilateral agreements, 92–93, 234–235biodiesel blended fuel (B20), 52biodiscovery, 22–23biodiversity and ecosystems outcome, 14–44

evaluation, 28–29key achievements, 16–20objectives, 15–16responsibility for, 14results, 30–44strategies, 20–28

Biodiversity Conservation Division, 84responsibilities, 15

Biodiversity Conservation Strategy, 32Biodiversity Fund, 27, 29biological products, 52

access to, 22–23, 227, 230deliverables on, 58see also Australian Biological Resources Study; Nagoya Protocol on Access to Genetic Resources

Bioregional Assessment Program, 72biosecurity, 27–28biotechnology, 52bitou bush, 25blackberry control, 25blue whales, 63Booderee National Park, 226, 227Border Protection Command (BPC), 22breaches and investigations, EPBC Act, 238–242Burke, the Hon. Tony MP, 11Bush Blitz, 20, 28Business Continuity Plan, 152

CCanberra offices operations, 163–167cane toads, 260Carbon Farming Initiative, 19, 27carbon pricing, 49

deliverables on, 59Caring for our Country, 15, 261

deliverables on, 30, 31Phase I, 23Phase II, 18, 25

carryover of environmental water, 147Casey Station (Antarctica), 66

waste treatment facilities, 65cash flow statements, 326, 433catchment management authorities, 24catchment summaries, Murray–Darling Basin, 116–117cats, feral, 20, 263certificate of compliance, 153cetaceans, 63, 98, 252changes in equity statements, 325, 432chemicals, 52, 54

assessments, 52COAG reforms, 47, 50deliverables on, 58flame retardants, 47, 53, 286

Chief Operating Officer, 151Christmas Island National Park, 226chytrid fungus, 20, 259Clean Energy Future Plan, 15, 29, 47, 49

deliverables on, 56, 59climate change, 27, 162

parliamentary committee reports, 157Closing the Gap, 19coal seam gas and coal mining, 80–81, 233

parliamentary committee reports, 156Coal Seam Gas and Large Coal Mining Development statutory committee, 72, 215–216code of conduct see APS Values and Code of ConductComcare audits, 295Comcover Risk Management Benchmarking Survey, 152Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR), 63, 65committees, departmental, 150Commonwealth Disability Strategy, 188–189Commonwealth environmental water, 112–147

administration, 119–124audit report, 154–155availability, 115–116carryover, 117, 147delivery, 128holdings, 71, 125–127management, 115–118, 120monitoring and evaluation, 117–118, 123parliamentary reports, 156risk management, 120stakeholder engagement, 121–122trade, 117, 120use, 115–116water shepherding, 121watering actions, 129–146

Commonwealth Environmental Water Holder (CEWH), 112–147, 154–155directions to, 119priorities for 2012–13, 115

Commonwealth Environmental Water Office (CEWO), 113–114audit report, 154–155business and information systems, 123key performance indicators, 115publications and communication, 121stakeholder engagement, 122

Commonwealth Fraud Control Guidelines, 52Commonwealth Heritage List, 217Commonwealth marine reserves, 15, 16, 21–22, 227–228, 227–229

aerial surveillance, 22

approvals, 22criminal prosecutions, 229deliverables on, 34enforcement actions, 22fishing permits and approvals, 228–229location and extent, 17–18management plans, 17, 21–22, 29new, 16, 21, 28–29scientific research, 228–229surveillance flights, 228vessel monitoring, 228

Commonwealth Ombudsman, 153Commonwealth Southern and Eastern Scalefish and Shark Fishery, 20communications products and activities, 191, 192, 258–259Community Action Grants, 23Community Information Unit, 192community sustainability initiatives, 54complaints and inquiries, 193compliance and enforcement, EPBC Act, 94–95, 97–98, 217, 239–245compliance audit summaries, 259compliance auditing, 94, 262compliance with timeframes, 253–256comprehensive income statements, 323, 430computers and televisions, 51, 59, 266Confidentiality in Government Contracts report, 154conservation policies, 29consultancies, 196Consultative Committee, Departmental, 150contact details, 3

client services, 192freedom of information, 301

container deposit schemes, 158contracts exempt from AusTender, 196Convention on Biological Diversity, 20, 23, 195Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), 33, 158, 195–196Coral Sea Commonwealth Marine Reserve, 21Core Capabiity Framework, 186corporate governance, 149–158corporate outcome, 159–207corporate planning, 149–150Corporate Strategies Division, 149corrections to material errors, 302Council of Australian Governments (COAG), 19, 47Council of Managers of National Antarctic Programs, 65Crisis Communication Plan, 152Customs and Border Protection Service (ACBPS), 228

DDarwin/Jabiru offices operations, 167–171Davis Station (Antarctica), 66

waste treatment facilities, 65Department of Agriculture, Fisheries and Forestry, 23, 24, 27–28Department overview, 10departmental committees, 150departmental funds, 197diesel quality standards, 52Director of National Parks, 21, 226

risk management, 151Disability Action Plan, 190disability strategy, 188–189, 190

diversity, workplace, 189–191

Ee-learning modules, 187Earth Hour 2013, 162East Asia Summit, 194ecologically sustainable development, 159–161, 233–242

strategies, 230–232ECONet, 162–163economic indicators, departmental, 197electric ants, 28emissions, toxic, 51 see also National Pollutant Inventoryendangered species and communities see threatened species and communitiesenergy use, departmental, 163–164, 168, 172–173, 178enterprise agreement, 187environment and heritage conservation, 84–110Environment Approvals and Compliance Division, 84Environment Protection and Biodiversity Conservation Act 1999, 15, 209–260

advice under section 160, 249assessments & approvals, 248–250benefit-sharing provisions, 18compliance and enforcement, 94–95, 97–98, 210, 214, 236–242controlled actions under, 214offsets calculator, 16overview of operations, 212–214proposals, 214referrals, 214regulatory reform, 243–244strategic assessments, 230–231

Environment Quality Division, 46Environmental Assets Database, 123Environmental Decisions research hub, 16environmental impact assessments, 90–91, 96, 232–236

assessments and approvals, 234, 248–250referrals, 233–234

environmental indicators summaries, departmental, 164–167, 169–171, 174–177, 180–184environmental law reform, 91Environmental Management Systems (EMS), departmental, 162Environmental Performance Committee, Departmental, 150environmental performance, departmental, 159–161

Australian Antarctic Division, 177–184Canberra offices, 163–167Darwin/Jabiru offices, 167–171Parks Australia, 172–177strategies, 162–163

Environmental Scan 2012, departmental, 186–187environmental water see Commonwealth environmental waterEnvironmental Water Holdings Special Account, 123–124Environmental Water Management System, 123Equator Initiative, 19equity, 204ethanol quality standards, 52ethical standards, 188Executive Board, 150executive summary, 4–12exempt contracts, 196expenditure, 12expenses, 197

by outcomes, 310–318Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development, 70external scrutiny, 153

FFacebook, 191fact sheets, 258Federal Court proceedings, 153feedback, 193female staff, 292–293feral animals, 20, 27, 263fertiliser management, 19financial performance

administered activities, 201–203departmental activities, 198–200

financial position, 204–205financial statements, 319–452financial summary, 12fire retardants, chemical, 47, 53, 286fisheries, 21, 29

assessment and approvals, 28, 228assessments and approvals, 225–226; Commonwealth-owned, 252–253deliverables on, 33state-owned, 252–253see also Guidelines for the Ecologically Sustainable Management of Fisheries

Fisheries Adjustment Assistance Package, 17, 21forestry industry, 25forum participation, 64foxes, 260fraud control, 152, 188free trade agreements, advice on, 194freedom of information, 301frogs, 25, 262Fuel Quality Standards Act 2000, 52, 272–277

approvals under, 276–277compliance and enforcement, 272–273

Fuel Standards Consultative Committee, 274–275full-time staff, 294functions, 10–11, 159funding guidelines, 18

Ggamba grass, 260gas see oil and gasgender of staff, 292–293Gene Technology Regulator, 52genetic resources, 22–23

deliverables on, 32genetically modified organisms, 52

deliverables on, 58Global Biodiversity Information Facility, 20Global Reporting Initiative, 303–307Global Reporting Initiative (GRI), 163, 303–307glossary, 453–464graduate program, 188Graduate Steering Committee, 150grants programs, 298Great Artesian Basin Coordinating Committee (GABCC), 74Great Artesian Basin Sustainability Initiative, 74

Great Barrier Reef, 16, 24deliverables on, 31parliamentary reports, 156–157risk management, 151water quality, 29, 31

greenhouse gas emissions, 260 departmental, 163–164, 168, 173, 178see also National Pollutant Inventory

Grimes, Paul (Secretary), 11guide to annual report, 2–3Guidelines for the Ecologically Sustainable Management of Fisheries, 15, 28guidelines published, 258

HHazardous Waste (Regulation of Exports and Imports) Act 1989, 278–279

review, 55hazardous waste management, 51, 53, 55

deliverables on, 57Hazardous Waste Technical Group, 279Health and Safety Committee, Departmental, 150Heard Island and McDonald Islands Marine Reserve, 229heritage and environment conservation outcome, 84–110

evaluation, 96–98key achievements, 86–88objectives, 85responsibilities, 84results, 99–110strategies, 88–95

heritage buildings, 213Heritage Grants Programs, 90heritage listings, 93–94human resources see staffhuman rights, 185

Iice core studies, 63Incident Management Steering Committee, 150, 152incident reporting, 295income, own-source, 197Independent Expert Scientific Committee (IESC), 214, 215Indigenous Advisory Committee (IAC), 214–215, 256–257Indigenous Australians, 19, 189–190, 215

organisations, 23–24programs, 24, 90see also Working on Country program; World Indigenous Network

Indigenous Carbon Farming Fund, 19Indigenous Employment and Capability Strategy 2012–14, 189Indigenous Protected Areas (IPAs), 15, 23–24

new, 18Indigenous rangers, 19, 24industrial chemicals management, 50, 52industry emission data, 51inquiries and complaints, 193Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES), 194

deliverables on, 33internal audit, 73–74, 151Internal Audit Section, 151Internal Audit Work Plan, 151international agreements, 53–54

deliverables on, 57international policy advice, 193–196International Whaling Commission (IWC), 39, 198invasive grasses, listed, 19, 27, 222, 260invasive species, 27–28, 260

deliverables on, 33irrigation, Murray–Darling Basin, 70, 77IT Disaster Recovery Plan, 152

JJobs Fund, 14judicial decisions, 153

KKakadu National Park, 16, 226Kevin McLeod Award 2013, 190key threatening processes, 222, 223, 250, 259–260Kyoto Protocol, 49

LLand Sector Carbon and Biodiversity Board, 19, 26, 29

meetings, 26membership, 26

Land Sector Package, 15, 18, 26, 29Landcare, 24–25landfill diversions, 51Landscapes and Policy research hub, 16lantana, 25learning and development, 187–188

diversity training, 189e-learning modules, 187fraud awareness, 152leadership and management, 187performance management, 186

Lee v Commonwealth, 153legal actions, 240–242legislation reporting, 209–290legislative review, amendment and reform, 212, 243–244

hazardous waste, 55product stewardship (oil), 55Water Act and Regulations, 289

liabilities, 197, 205liquefied petroleum gas quality standards, 52listed species, 218, 219–221

assessment outcomes, 218–221live imports, 224location of staff, 292–293

MMacquarie Island Pest Eradication Project, 213Macquarie Island Station (sub-Antarctic), 66Marine Biodiversity research hub, 16marine bioregional plans, 15, 231

deliverables on, 34new, 17, 28

marine debris, 229, 259

marine protected areas, 37, 63, 241marine reserves see Commonwealth marine reservesmatters of national environmental significance (MNES), 94, 212, 214–223, 217–219, 249–250Mawson Station (Antarctica), 66Measuring Sustainability Program, 54–55mentoring scheme, 187migratory species, 217, 223Minamata Convention on Mercury, 48, 53Minister for Finance and Deregulation, 12Minister for Sustainability, Environment, Water, Population and Communities, 11ministerial services, 191–192mission statement, 10monitoring and audit, EPBC Act, 214Monitoring, Evaluation, Reporting and Improvement (MERI) Strategy, 29Montreal Protocol on Substances that Deplete the Ozone Layer, 49, 53Multicultural Plan, departmental, 185Murray–Darling Basin, 70, 112–147

audit report, 154–155Basin Plan, 70, 71, 120, 288–290catchment summaries, 116–117parliamentary committee reports, 155–156water delivery, 128watering actions, 129–146see also Sustainable Diversion Limits

Murray–Darling Basin Authority (MDBA), 70, 123myrtle rust, 28

NNagoya Protocol on Access to Genetic Resources, 18, 23, 29nanotechnology, 52; deliverables on, 58National Disability Strategy, 188–189National Environmental Research Program (NERP), 15, 16

deliverables on, 38progress reports, 28research highlights, 16strategies, 20

national heritage, 213–214national heritage buildings and sites, 93–94, 216National Heritage List, 216National Industrial Chemicals Notification and Assessment Scheme, 52National Offshore Petroleum Safety and Environmental Management Agency, 16national parks management, 16National Plan for Clean Air, 58National Pollutant Inventory, 51

deliverables on, 58–59National Research Priorities, 20National Reserve System, 15, 18, 23, 226–227

deliverables on, 30National Sustainability Council, 48, 54–55National Taxonomy Research Grant Program, 16National Television and Computer Recycling Scheme, 47

deliverables on, 56National Urban Water and Desalination Plan, 77National Waste Policy, 47, 49National Water Initiative, 70, 72National Water Quality Management Strategy, 70National Wildlife Corridors Plan, 19, 25, 29

deliverables on, 32Native Vegetation Framework, 19, 29Natural Heritage Trust of Australia Act 1997, 261

neurotoxin management, 53new species discovery, 28New Zealand, engagement with, 195non-English-speaking background (NESB), people with, 189Norfolk Island, 226North and North-west marine bioregional plans, 17Northern Australia research hub, 16Northern Victoria Irrigation Renewal Project, 73notifiable incidents, 296–297nutrient runoff management, 24, 29, 31

Ooccupational health and safety see work health and safetyOceania Biodiscovery Forum, 23Office of Water Science, 70, 73offsets calculator, EPBC Act, 16oil and gas, 16

oil levy, 52oil recycling, 265–271oil stewardship, 52used oil, 52, 268–274

Oil Stewardship Advisory Council, 271Ombudsman’s reports and notifications, 153One Land – Many Stories prospectus, 18online information, 191operating loss, 12organisational effectiveness, 149–210outcomes

expenses by, 310–318program structure and, 10

overview, departmental, 10ozone layer

deliverables on, 57, 59ozone-depleting substances, 49–50, 53, 280–285protection, 49–50

Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, 49, 50, 280–285

PPacific Regional Environmental Program, 195Packaging Impacts Consultation Regulation Impact Statement, 47Paddock to Reef Integrated Monitoring, Modelling and Reporting program, 29pamphlets, 258–259Pandemic Plan, 152Papps, David (Commonwealth Environmental Water Holder), 113–114Parks Australia, 16

environmental performance, 172–177responsibilities, 15

parliamentary committee reports, 155–158parliamentary services, 191–192part-time staff, 294performance audits, 154–155performance management, 185, 186, 187performance pay, 188persistent organic pollutants, 47, 53pesticides runoff management, 16, 19, 24, 29petrol quality standards, 52Phillip Island, 226Phytophthora cinnamomi, 27, 259pigs, feral, 27, 263

plastics see chemicalsPolicy and Communications Division: responsibilities, 149policy statements published, 258pollutants see National Pollutant Inventoryportfolio overview, 11PricewaterhouseCoopers, 73–74, 151procurement, 196–197product stewardship, 50–51, 262–264

benefit payments, 266, 267, 270deliverables on, 56–57, 59levy, 267, 268

Product Stewardship (Oil) Act 2000, 48, 265–271review, 55

Product Stewardship (Televisions and Computers) Regulations, 59Product Stewardship Act 2011, 47, 50, 261–264Product Stewardship Advisory Group, 47, 51, 263–264Product Stewardship for Oil Program, 48, 52, 55programs, 10

expenditure on, 12property, plant and equipment, 12prospectuses, 259publications, 191, 258–259Pulu Keeling National Park, 226purchasing, 196

RRamsar wetlands, 79, 213, 217

deliverables on, 31Reconciliation Action Plan (RAP) 2013-2015, 190

deliverables on, 32Reconciliation Action Plan (RAP) Steering Committee, 150recovery plans, threatened species, 222recovery plans, threatened species and communities, 251, 252red imported fire ants, 28, 260Reef Plan 2011 Report Card, 29Reef Rescue, 19, 24

deliverables on, 31referrals, environmental impact assessments, 233–234, 245–257refrigeration and air conditioning, 284Regional Natural Resource Management Planning for Climate Change Fund, 27Register of Environmental Organisations, 193Regulatory Compliance Executive Committee, 150regulatory impact statements, 47remuneration, senior executive, 188reports published, 259research hubs, 16, 28resource recovery, 49resource use, departmental, 164, 168–169, 178–179return to work program, 295Rishworth, the Hon. Amanda, 11risk management, 151–152

Commonwealth environmental water, 120departmental vision, 152environmental, 162

River Murray Operations joint venture, 12role and functions, 10–11

SScientific Committee on Antarctic Research, 65

scientific research, Antarctic, 67, 68scientific whaling, 39sea dumping, 93, 98, 236Sea Ice Physics and Ecosystems Experiment II (SIPEX II), 62–63Secretary, 11

internal committee support, 151review 2012-13, 4–8

section 518 report, 253–256Security Plan, 152sediment runoff management, 24, 29, 35senior executives, 11

remuneration, 188senior management committees, 150service charter, 192Sharks Memorandum of Understanding, 223social inclusion, 188–191Social Inclusion Measurement and Reporting Strategy, 189social media, 191soil management, 19South-east Commonwealth Marine Reserves Network, 21South-west marine bioregional plan, 17spatial reporting, 206–207Species Profiles and Threats (SPRAT) database, 222species recovery plans, 33staff

Aboriginal and Torres Strait Islander, 189–190classifications, 186, 291diversity, 189–191feedback processes, 186full-time, 294gender, 292–293Indigenous, 185, 189–190learning and development, 187–188location, 186, 292–293part-time, 294performance management, 185, 186, 187profile, 186, 291–294retention, 186return to work program, 295senior, 11work health and safety, 295–297

stakeholder engagement, 191–196Standing Council on Environment and Water, 50Stockholm Convention on Persistent Organic Pollutants, 47, 53Stormwater Harvesting and Reuse Grants, 73–74strategic assessments, EPBC Act, 92, 96–97, 230–231Strategic Plan, 149–150Strategic Science in Antarctic conference, 64Strategic Workforce Plan 2013-2016, 187Strengthening Basin Communities Program, 77Stronger Futures in the Northern Territory, 24Suburban Jobs Program, 48, 54Supervising Scientist Division, 84, 88–89, 96sustainability see Measuring Sustainability Programsustainability indicators, 48, 54–55Sustainability Policy and Analysis Division, 15, 46sustainability reporting, departmental, 163Sustainable Australia Report 2013, 55Sustainable Diversion Limits, Murray–Darling Basin, 70, 71, 72

parliamentary committee report, 155sustainable population and communities outcome, 46–60

evaluation, 55key achievements, 47–48objectives, 46responsibility for, 46results, 56–60strategies, 48–55

sustainable procurement guidelines, 47sustainable water outcome, 70–82

evaluation, 73–75key achievements, 71–72objectives, 70responsibility for, 70results, 75–82strategies, 72–73

Sustainable Water Use and Infrastructure Program (SRWUIP), 77synthetic greenhouse gases, 49–50, 53, 280–285

carbon price, 49, 56deliverables on, 57, 59destruction of, 47

TTasmanian Forest Agreement, 19Tasmanian Forests Intergovernmental Agreement 2013, 16, 19, 25Tasmanian Wilderness World Heritage Area, 86, 213taxonomy, 15, 28

funding for, 16televisions and computers, 51, 59, 263Temperate East marine bioregional plan, 17terrestrial reserves, Commonwealth, 15, 18, 23, 226–227threat abatement plans, 19–20, 27, 29, 222–223, 259–260

deliverables on, 33threatened species and communities, 16, 93, 212–213, 217–223, 250

deliverables on, 33recovery plans, 251, 252see also threat abatement plans

Threatened Species Scientific Committee (TSSC), 27, 214, 218, 256timeframes see compliance with timeframestraining see learning and developmenttramp ants, 20transport use, departmental, 163–164, 168, 173Tropical Ecosystems research hub, 16Tuggerah Lakes, 24–25turnover of staff, 186Twitter, 191tyre product stewardship, 47

UUluru-Kata Tjuta National Park, 226United Nations Conference on Sustainable Development (Rio+20), 26United Nations Environment Programme, 193–194United Nations Framework Convention on Climate Change (UNFCCC), 49uranium mining, 88–89urban water, 82used oil, 52, 265–271

Vvessel monitoring system, AFMA, 22volunteer activities, 25

Wwaste management, 49

departmental, 164, 168–169, 173, 176, 178–179parliamentary committee reports, 158

waste treatment, Antarctica, 65water

assets, 12, 115–116consumption, departmental, 163–164, 171, 174, 179infrustructure investment, 77quality management, 24–25reforms, 71shepherding, 121use efficiency, 78see also sustainable water outcome

Water Act 2007, 70, 288–290litigation concerning, 153

Water Efficiency Division, 70Water Efficiency Labelling and Standards Act 2005, 286–287Water Reform Division, 70websites, 3, 191WELS scheme see Water Efficiency Labelling and Standards Act 2005wetlands of international importance, 213, 217whales, 39, 63, 98, 252wildlife corridors, 15, 19, 25wildlife trade and management, 93, 95, 224–226, 227–232

live imports, 224trade permits, 225see also National Wildlife Corridors Plan

wildlife trafficking, 95, 97Wildlife, Heritage and Marine Division

responsibilities, 15, 84wood heaters, 47work health and safety, 185, 295–297workers compensation premium, 296Workforce Management Committee, 150, 186workforce planning, 186–187workforce profile, 186Working on Country program, 19, 24

deliverables on, 31workplace diversity, 189–191world heritage, 213–214

deliverables on, 31World Heritage Committee, 213World Heritage List, 216World Indigenous Network, 16, 19, 26

Yyellow crazy ants, 260YouTube, 191