Portfolio Additional Estimates Statements 2013-14 · portfolio additional estimates statements 2013-14 environment portfolio explanations of additional estimates 2013-14

PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS 2013-14

ENVIRONMENT PORTFOLIO

EXPLANATIONS OF ADDITIONAL ESTIMATES 2013-14

© Commonwealth of Australia 2014

ISBN 987176004 4299

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iii

GREG HUNT

PARLIAMENT HOUSE

CANBERRA 2600

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Madam Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the

2013-14 Additional Estimates for the Environment Portfolio.

These statements have been developed, and are submitted to the Parliament, as a

statement on the funding requirements being sought for the Portfolio.

I present these statements by virtue of my ministerial responsibility for accountability

to the Parliament and, through it, the public.

Yours sincerely

iv

Abbreviations and conventions

The following notations may be used:

NEC/nec not elsewhere classified

- nil

.. not zero, but rounded to zero

na not applicable (unless otherwise specified)

nfp not for publication

$m $ million

Figures in tables and in the text may be rounded. Figures in text are generally rounded

to one decimal place, whereas figures in tables are generally rounded to the nearest

thousand. Discrepancies in tables between totals and sums of components are due to

rounding.

ENQUIRIES

Should you have any enquiries regarding this publication please contact Lily

Viertmann, Chief Financial Officer in the Department of the Environment

on (02) 6274 1812.

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

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

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

USER GUIDE TO THE

PORTFOLIO ADDITIONAL ESTIMATE STATEMENTS

vii

USER GUIDE

The purpose of the Portfolio Additional Estimates Statements (PAES), like that of the

Portfolio Budget Statements (PB Statements), is to inform Senators and Members of

Parliament of the proposed allocation of resources to Government outcomes by

agencies within the portfolio. The focus of the PAES differs from the PB Statements in

one important aspect. While the PAES include an Agency Resource Statement to

inform Parliament of the revised estimate of the total resources available to an agency,

the focus of the PAES is on explaining the changes in resourcing by outcome(s) since

the Budget. As such, the PAES provides information on new measures and their

impact on the financial and/or non-financial planned performance of programs

supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation

Bills (Nos. 3 and 4) 2013-14. In this sense the PAES is declared by the Additional

Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the

Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook (MYEFO) 2013-14 is a mid-year

budget report which provides updated information to allow the assessment of the

Government’s fiscal performance against its fiscal strategy, the PAES update the most

recent budget appropriations for agencies within the portfolio.

User Guide

viii

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User Guide

Provides a brief introduction explaining the purpose of the PAES.

Portfolio Overview

Provides an overview of the portfolio, including a chart that outlines the outcomes for agencies

in the portfolio.

Agency Additional Estimates Statements

A statement (under the name of the agency) for each agency affected by Additional

Estimates.

Section 1: Agency

Overview and

Resources

This section details the total resources available to an agency,

the impact of any measures since Budget, and impact on

Appropriation Bills Nos. 3 and 4.

Section 2: Revisions to

Outcomes and Planned

Performance

This section details changes to Government outcomes and/or

changes to the planned performance of agency programs.

Section 3: Explanatory

Tables and Budgeted

Financial Statements

This section contains updated explanatory tables on special

account flows and staffing levels and revisions to the budgeted

financial statements.

Glossary Explains key terms relevant to the Portfolio.

Index (Optional) Alphabetical guide to the Statements

ix

CONTENTS

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

Department of the Environment ................................................................................ 13

Clean Energy Regulator ............................................................................................. 93

PORTFOLIO OVERVIEW

Portfolio Overview

3

PORTFOLIO OVERVIEW

PORTFOLIO STRUCTURE

Since the 2013-14 Budget, the outcome structure of the Portfolio has changed through

the Administrative Arrangements Order announced by the Prime Minister and

approved by the Governor-General on 18 September 2013. These changes include:

the change of the portfolio name from the Sustainability, Environment, Water,

Population and Communities Portfolio to the Environment Portfolio;

the change of the department name from the Department of Sustainability,

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

Environment;

the transfer of responsibility for Indigenous Environmental Policy to the

Department of the Prime Minister and Cabinet; and

the transfer, from the former Portfolio of Industry, Innovation, Climate Change,

Science, Research and Tertiary Education, of responsibility for:

o development and co-ordination of domestic climate change policy;

o renewable energy target policy, regulation and co-ordination;

o greenhouse emissions and energy consumption reporting;

o climate change adaptation strategy and co-ordination;

o co-ordination of climate change science activities;

o renewable energy;

o greenhouse gas abatement programmes; and

o community and household climate action.

A revised Portfolio structure reflecting these changes is presented at Figure 1

Portfolio Overview

4

MINISTER AND PORTFOLIO RESPONSIBILITIES

The Portfolio is led by the Minister for the Environment and comprises the

Department, six prescribed agencies1 and two Commonwealth Authorities2.

The Department provides leadership on environment, domestic climate change, water,

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

of the Australian Government. In addition to these roles, the Department is also

responsible for advancing Australia’s interests in the Antarctic.

Bureau of Meteorology

The Bureau of Meteorology is an executive3 and prescribed agency and is responsible

for the outcome:

Informed safety, security and economic decisions by governments, industry and

the community through the provision of information, forecasts, services and

research relating to weather, climate and water.

The Bureau is Australia’s national meteorological authority. It makes observations of

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

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

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

international cooperation in these areas. The Bureau’s work supports all Australians

including the Australian Defence Force and key sectors such as emergency

management, aviation, transport, water management, agriculture and environmental

management. The Bureau operates under the Meteorology Act 1955 and the Water Act

2007.

1 ‘prescribed agency’ as defined under the Financial Management and Accountability Act 1997. 2 ‘Commonwealth Authority’ as defined under the Commonwealth Authorities and Companies Act

1997. 3 ‘executive agency’ as defined under the Public Service Act 1999.

Portfolio Overview

5

Climate Change Authority

The Climate Change Authority is a statutory4 and prescribed agency that is responsible

for the outcome:

Provide expert advice to the Australian Government on climate change

mitigation initiatives, including the level of carbon pollution caps, the carbon

price mechanism, the Renewable Energy Target and progress in achieving

Australia’s emissions reduction targets, through conducting periodic reviews

and undertaking climate change research.

The Government introduced a Bill to abolish the Authority into the Parliament in

November 2013, which is currently being considered by the Senate. The Bill provides

that the Authority will be abolished on a date to be proclaimed or 6 months after Royal

Assent, whichever is earlier.

Clean Energy Regulator

The Clean Energy Regulator is a statutory and prescribed agency that is responsible for

the outcome:

Contribute to a reduction in Australia's net greenhouse gas emissions, including

through the administration of a carbon price on liable emissions intensive

businesses and other entities (until such time as the carbon price is repealed);

promoting additional renewable electricity generation; and land-based initiatives

that support carbon abatement.

The Regulator undertakes a broad range of functions to facilitate participation in and

ensure the integrity of Australia’s carbon pricing mechanism and previously

established mechanisms for monitoring and strengthening Australia’s response to

climate change. Its vision is to support Australia’s transition to a low carbon economy

through an informed and efficient market for carbon and investment in renewable

energy.

The Government introduced bills to repeal the carbon pricing mechanism and related

measures imposing equivalent carbon prices in November 2013, which are currently

being considered by the Senate. The Bills provide that carbon price liabilities will no

longer arise after 30 June 2014.

4 ‘statutory agency’ as defined under the Public Service Act 1999.

Portfolio Overview

6

Director of National Parks

The Director of National Parks is a Commonwealth and statutory5 authority and is

responsible for the outcome:

Conservation and appreciation of Commonwealth reserves through the

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

stakeholders and neighbours.

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

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

provides national leadership in protected area management. The Director operates

under the Environment Protection and Biodiversity Conservation Act 1999.

Great Barrier Reef Marine Park Authority

The Great Barrier Reef Marine Park Authority is a prescribed and statutory agency and

is responsible for the outcome:

The long-term protection, ecologically sustainable use, understanding and

enjoyment of the Great Barrier Reef for all Australians and the international

community, through the care and development of the Marine Park.

The Authority protects and conserves the World Heritage values of the Great Barrier

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

Murray-Darling Basin Authority

The Murray-Darling Basin Authority is a prescribed and statutory agency, established

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

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

the community including through development and implementation of a

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

natural resource management programs, research, information and advice.

The Authority is responsible for planning integrated management of the water

resources of the Murray-Darling Basin. The Authority has developed, and will

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

and groundwater diversions across the Basin, an Environmental Watering Plan, a

Water Quality and Salinity Management Plan and water trading and transfer rules.

5 ‘statutory authority’ as defined under the Commonwealth Authorities and Companies Act 1997.

Portfolio Overview

7

National Water Commission

The National Water Commission is a prescribed and statutory agency within the

portfolio and is responsible for the outcome:

Informed decisions by governments on national water issues, and improved

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

independent advice.

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

improve water management across Australia by providing assessments and advice,

and undertaking activities that promote the National Water Initiative.

Sydney Harbour Federation Trust

The Sydney Harbour Federation Trust is a Commonwealth and statutory authority

and is responsible for the outcome:

Enhanced appreciation and understanding of the natural and cultural values of

Sydney for all visitors, through the remediation, conservation and adaptive re-

use of, and access to, Trust lands on Sydney Harbour.

The Trust is responsible for conserving and planning the future uses of former military

bases and other Commonwealth land around Sydney Harbour. The Trust operates

under the Sydney Harbour Federation Trust Act 2001.

Portfolio Overview

8

Minister for the EnvironmentThe Honourable Greg Hunt MP

Parliamentary Secretary to the Minister for the Environment

Senator the Honourable Simon Birmingham

Great Barrier Reef Marine Park AuthorityChairperson - Dr Russell Reichelt

Outcome: The long-term protection, ecologically sustainable use, understanding and enjoyment of the Great Barrier

Reef for all Australians and the international community, through the care and development of the Marine Park.

Sydney Harbour Federation TrustExecutive Director - Mr Geoff Bailey

Outcome: Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through

the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour.

National Water CommissionActing Chief Executive Officer - Ms Kerry Olsson

Outcome: Informed decisions by governments on national water issues, and improved management of Australia's water

resources, through advocacy, facilitation and independent advice.

Director of National ParksDirector - Ms Sally Barnes

Outcome: Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the

control of invasive species and working with stakeholders and neighbours.

Murray-Darling Basin AuthorityChief Executive Officer - Dr Rhondda Dickson

Outcome: Equitable and sustainable use of the Murray-Darling Basin by governments and the community including

through development and implementation of a Basin Plan, operation of the River Murray system, shared natural resource

management programs, research, information and advice.

Department of the Environment

Portfolio Secretary - Dr Gordon de Brouwer

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.

Outcome 7: Reduction of Australia's greenhouse gas emissions, adaptation to the impacts of climate change, and contribution towards the negotiation of an effective global solution to climate change, through the development and

implementation of a national response to climate change.

Bureau of MeteorologyDirector - Dr Rob Vertessy

Outcome: Informed safety, security and economic decisions by governments, industry and the community through the

provision of information, forecasts, services and research relating to weather, climate and water.

Climate Change AuthorityChief Executive Officer - Ms Anthea Harris

Outcome: Provide expert advice to the Australian Government on climate change mitigation initiatives, including the

level of carbon pollution caps, the carbon price mechanism, the Renewable Energy Target and progress in achieving

Australia’s emissions reduction targets, through conducting periodic reviews and undertaking climate change research.

Clean Energy RegulatorChief Executive Officer - Ms Chloe Munro

Outcome: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of

a carbon price on liable emissions intensive businesses and other entitites; promoting additional renewable electricity

generation; and land-based initiatives that support carbon abatement.

Figure 1: Environment Portfolio Structure and Outcomes

Portfolio Overview

9

Portfolio Resources

Table 1 shows for those agencies reporting in the PAES the additional resources

provided to the portfolio in the 2013-14 budget year, by agency.

Table 1: Portfolio Resources 2013-14 Receipts Total

Bill No. 3 Bill No. 4 Special

$m $m $m $m $m

Administered appropriations 0.350 0.088 - - 0.438

Departmental appropriations 4.966 38.141 - - 43.107

Clean Energy Regulator

Departmental appropriations 3.118 5.264 - - 8.382

Total: 51.927

Resources available within portfolio: 51.927

Appropriation

Department of the

Environment

AGENCY ADDITIONAL ESTIMATES

STATEMENTS

Department of the Environment ................................................................................ 13

Clean Energy Regulator ............................................................................................. 93

13

DEPARTMENT OF THE ENVIRONMENT

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

1.1 Strategic Direction .................................................................................................. 15

1.2 Agency Resource Statement ................................................................................. 17

1.3 Agency Measures Table ........................................................................................ 22

1.4 Additional Estimates and Variations ...................................................................... 26

1.5 Breakdown of Additional Estimates by Appropriation Bill ...................................... 33

Section 2: Revisions to Agency Outcomes and Planned Performance ................ 40

2.1 Resources and Performance Information .............................................................. 40

Section 3: Explanatory Tables and Budgeted Financial Statements ..................... 73

3.1 Explanatory Tables ................................................................................................ 73

3.2 Budgeted Financial Statements ............................................................................. 75

Agency Additional Estimates Statements — Department of the Environment

15

DEPARTMENT OF THE ENVIRONMENT

Section 1: Agency Overview and Resources

1.1 STRATEGIC DIRECTION

Since the 2013-14 Budget, the change of government at the federal election in

September 2013 has resulted in changes to the strategic priorities for the Department of

the Environment. The key priority for the Department is implementing the new

Government’s reform agenda, including its election commitments, along with meeting

existing obligations under environmental and other legislation and international

arrangements.

The four pillars of the Government’s Plan for a Cleaner Environment – Clean Air,

Clean Land, Clean Water and Heritage Protection – are a guiding framework for water

reform, environmental regulation, supporting Australia’s interests in Antarctica,

natural resource management, biodiversity conservation and action on climate change.

Work is well advanced on fulfilling the Government’s commitment to repeal the

carbon tax to lower costs for Australian businesses and ease cost of living pressures for

households. The package of carbon tax repeal bills was introduced as the first item of

legislative business for the 44th Parliament in November 2013. The bills have been

passed by the House of Representatives and are currently before the Senate.

A Green Paper was released in December 2013 on the Emissions Reduction Fund,

which will form the centrepiece of the Government’s Direct Action Plan. The Fund will

work together with other features of the Direct Action Plan and the Renewable Energy

Target to help meet the Government’s target of reducing greenhouse gas emissions by

five per cent below 2000 levels by 2020.

The Department is progressing implementation of the Government’s commitment to

establish a one stop shop for environmental approvals. This will accredit state and

territory planning systems under the Environment Protection and Biodiversity

Conservation Act 1999 (EPBC Act) to create a single environmental assessment and

approval process. The one stop shop policy aims to simplify the approvals process for

businesses, while maintaining high environmental standards. All states and territories

have signed Memoranda of Understanding committing to implement a one stop shop,

and the Government has signed assessment bilateral agreements with Queensland and

New South Wales.

In support of the Government’s broader deregulation agenda, the Department is also

progressing an audit of environmental regulation and identifying opportunities to

reduce red tape and costs to business and the community.


16

Funding of $300 million was announced in the 2013-14 Mid Year Economic and Fiscal

Outlook for the creation of the Green Army Programme, providing practical

opportunities for young Australians to engage in grassroots environmental actions.

Projects will commence in 2014-15 with a focus on supporting local communities to

achieve tangible environmental and heritage conservation outcomes.

The Government is providing national leadership in water reform through investing in

rural water use, management and efficiency projects. This is aimed at securing a

sustainable future for irrigated agriculture and delivering lasting water returns to the

environment. The Department has implemented a re-phasing of $650 million from

Murray-Darling Basin programs for water buyback and infrastructure to spread four

years worth of spending over six years, along with the amalgamation of two

programmes – the Restoring the Balance in the Murray-Darling Basin programme and

the Sustainable Rural Water Use and Infrastructure programme – to provide greater

flexibility in managing the Government’s water reform priorities.

The Portfolio has also implemented savings to assist the Government to meet its

Budget priorities. This has included savings of $45.0 million over the forward

estimates to 2016-17 through reducing the functions of the former Department of

Climate Change and Energy Efficiency and other savings associated with the repeal of

the carbon tax.

Machinery of Government changes have resulted in the transfer of domestic climate

change functions to the Department. A new Outcome 7 was created to reflect this

responsibility in these Additional Estimates Statements. In addition, Indigenous

functions have been transferred to the Department of the Prime Minister and Cabinet.

The Department is seeking additional appropriations for 2013-14, including an increase

of $5.3 million in Appropriation Bill (No.3) 2013-14, and an increase of $38.2 million in

Appropriation Bill (No.4) 2013-14. A detailed breakdown of these appropriations is

provided in Table 1.2.


17

1.2 AGENCY RESOURCE STATEMENT

The Agency Resource Statement details the resourcing for the Department at

Additional Estimates. Table 1.1 outlines the total resourcing available from all sources

for the 2013-14 Budget year, including variations through Appropriation Bill Nos. 3

and 4, Special Appropriations and Special Accounts.


18

Table 1.1: Department of the Environment Resource Statement Budget Estimates for 2013-14 as at Additional Estimates February 2014

Estimate as Proposed Total estimate Total

at Budget + Additional = at Additional

Estimates

available

Estimate appropriation

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

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

Ordina ry a nnua l se rvic e s 1

De pa rtme nta l a ppropria tion

Prior year departmental

appropriation 2

84,402 - 84,402 77,068

Departmental appropriation 3

411,890 4,966 416,856 415,588

s32 Transfer from Industry 4

- 30,676 30,676 -

Payment to CAC Act bodies 5

41,497 - 41,497 40,170

s31 Relevant agency receipts 6

91,343 2,354 93,697 100,220

Tota l 6 2 9 ,13 2 3 7 ,9 9 6 6 6 7 ,12 8 6 3 3 ,0 4 6

Administe re d e xpe nse s

Outcome 1 - Biodiversity & Ecosystems 578,000 (58,324) 519,676 292,825

Outcome 2 - Sustainable Population

and Communities 25,178 - 25,178 11,005

Outcome 4 - Sustainable Water 246,121 (12,439) 233,682 364,029

Outcome 5 - Environmental Protection

and Heritage Conservation 9,743 350 10,093 11,666

Outcome 6 - Commonwealth

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

s32 Transfer of function from 7

Industry Outcome 7 - Climate Change - 14,775 14,775 -

Tota l 8 8 6 ,4 7 5 (5 5 ,6 3 8 ) 8 3 0 ,8 3 7 7 0 4 ,2 2 5

Tota l ordina ry a nnua l se rvic e s

inc luding Spe c ia l Ac c ounts 1,5 15 ,6 0 7 (17 ,6 4 2 ) 1,4 9 7 ,9 6 5 1,3 3 7 ,2 7 1

Tota l ordina ry a nnua l se rvic e s

e xc luding Spe c ia l Ac c ounts A 1,2 0 5 ,16 5 (9 ,7 17 ) 1,19 5 ,4 4 8 1,14 9 ,7 5 7


19


Estimate as Proposed Total estimate Total

at Budget + Additional = at Additional

Estimates

available

Estimate appropriation

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

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

Othe r se rvic e s

Administe re d e xpe nse s 8

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

ACT, NT a nd loc a l gove rnme nt

Outcome 4 - Sustainable Water 5,204 - 5,204 17,410

Outcome 5 - Environmental Protection

and Heritage Conservation 800 - 800 360

Tota l 6 ,0 0 4 - 6 ,0 0 4 17 ,7 7 0

De pa rtme nta l non- ope ra ting

Equity injections 2,467 38,141 40,608 1,872

Prior year non- operating 2

1,202 - 1,202 -

Tota l 3 ,6 6 9 3 8 ,14 1 4 1,8 10 1,8 7 2

Administe re d non- ope ra ting

Administered assets and liabilities 6,261 88 6,349 162,180

Prior year administered assets and

liabilities appropriation 2

512,683 - 512,683 -

Tota l 5 18 ,9 4 4 8 8 5 19 ,0 3 2 16 2 ,18 0

Tota l othe r se rvic e s B 5 2 8 ,6 17 3 8 ,2 2 9 5 6 6 ,8 4 6 18 1,8 2 2

Tota l a va ila ble a nnua l

a ppropria tions 2 ,0 4 4 ,2 2 4 2 0 ,5 8 7 2 ,0 6 4 ,8 11 1,5 19 ,0 9 3

Tota l a ppropria tions e xc luding

Spe c ia l Ac c ounts 1,7 3 3 ,7 8 2 2 8 ,5 12 1,7 6 2 ,2 9 4 1,3 3 1,5 7 9


20


Special Accounts Estimate Proposed Total Total

of prior year + at Budget = estimate available

amounts appropriation

available in

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

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

Spe c ia l Ac c ounts

Opening balance 9

452,976 - 452,976 449,478

Appropriation receipts 310,442 (7,925) 302,517 187,514

Non- appropriation receipts to

Special Accounts 46,600 (190) 46,410 10,447

Tota l Spe c ia l Ac c ount C 8 10 ,0 18 (8 ,115 ) 8 0 1,9 0 3 6 4 7 ,4 3 9

Tota l re sourc ing

A+B+C 2 ,5 4 3 ,8 0 0 2 0 ,3 9 7 2 ,5 6 4 ,19 7 1,9 7 9 ,0 18

Less appropriations drawn from

annual or special appropriations above

and credited to special accounts (310,442) 7,925 (302,517) (187,514)

and/or CAC Act bodies through

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

Tota l ne t re sourc ing for

Environme nt 2 ,19 1,8 6 1 2 8 ,3 2 2 2 ,2 2 0 ,18 3 1,7 5 1,3 3 4

1 Appropriation Act (No.1) 2013- 14 and Appropriation Bill (No. 3) 2013- 14.

2 Estimate at Budget has been adjusted to reflect the actual balance carried from previous year for

annual appropriations. 3 Includes $26.550 million for the Departmental Capital Budget (DCB) in 2013- 14 (refer to table 3.2.5

for further details). For accounting purposes the DCB amount has been designated as

'contributions by owners'. 4 Ministerial responsibility for domestic Climate Change has been transferred from the Department

of Industry consistent with the AAO changes announced on 18 September 2013. $30.676 million was

transferred on the 31st of January 2014 via a section 32 determination. 5 As per the Environment Protection and Biodiversity Conservation Act 1999 section 514S, Environment

is directly appropriated the Director of National Parks's (DNP) appropriations, which is then allocated

to DNP by the Secretary.6 FMA Act s31 receipts, also known as FMA Regulation 15 receipts, are an estimate.

7 Ministerial responsibility for domestic Climate Change has been transferred from the Department

of Industry consistent with the AAO changes announced on 18 September 2013. $14.775 million was

transferred on the 31st of January 2014 via a section 32 determination.8Appropriation Act (No.2) 2013- 14 and Appropriation Bill (No. 4 ) 2013- 14.

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

as Services for Other Entities and Trust Moneys account as they do not constitute funds available

to the department for operations). For further information on special accounts see table 3.1.1.

Reader note: All figures are GST exclusive.


21


Third Party Payments from and on behalf of other agencies Estimate at

Budget

Estimate at

Additional

Estimates

2013- 14 2013- 14

$'000 $'000

Payments made to CAC Act bodies within the portfolio

Departmenta l

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

Appropriation Bill (No.3) 2013-14 - -

T o tal D epartmental C A C A ct bo dy payments disclo sed abo ve 41,497 41,497


22

1.3 AGENCY MEASURES TABLE

Table 1.2 summarises measures taken since the 2013-14 Budget. The table is split into

revenue, expense and capital measures, with the affected program identified.

Table 1.2: Agency 2013-14 Measures since Budget Program 2013-14 2014-15 2015-16 2016-17

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

Revenue measures

Carbon pricing mechanism — replacing

f ixed price w ith an emissions trading

scheme from 1 July 2014 1 2.1

Administered revenues - (150,000) - -

Departmental revenues - - - -

Total - (150,000) - -

Repeal of the Carbon Tax - forgone

revenue from repeal of the Carbon Tax 2.1

Administered revenues (10,000) (50,000) (50,000) (90,000)


Total (10,000) (50,000) (50,000) (90,000)

Repeal of the Carbon Tax - abolishing

other measures 2 2.1

Administered revenues - 7,200 3,000 4,000


Total - 7,200 3,000 4,000

Total revenue measures

Administered (10,000) (192,800) (47,000) (86,000)

Departmental - - - -

Total (10,000) (192,800) (47,000) (86,000)

Expense measures

Caring for our Country - redirection of

funding 3 1.1

Administered (1,100) (604) (1,117) (1,092)


Total (1,100) (604) (1,117) (1,092)

Caring for our Country - redirection of

funding 4 1.1

Administered (6,667) - - -


Total (6,667) - - -

Green Army - establishment 1.1

Administered - 48,345 96,351 144,621

Departmental 968 2,335 2,163 2,674

Total 968 50,680 98,514 147,295

Tasmanian Economic Diversif ication

Projects 5 1.1, 5.1

Administered - - - -


Total - - - -


23


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

International Whale and Marine Mammal

Conservation Initiative - extension 6 1.2



Total - - - -

Southern Ocean Flights - monitoring of

w haling and protest f leets 1.1, 1.2

Administered (348) - - -

Departmental 348 - - -

Total - - - -

Biodiversity Fund - reduction in funding

and termination 7 1.3

Administered (32,885) (57,600) (52,120) (59,650)

Departmental - (2,339) (3,118) (4,977)

Total (32,885) (59,939) (55,238) (64,627)

Biodiversity Fund - reduced funding 8 1.3

Administered (183) (297) (717) (252)


Total (183) (297) (717) (252)


land initiatives and unnecessary

bureaucracies 2

1.3, 7.1,

7.2

Administered (17,141) (23,761) (16,939) (16,461)

Departmental 568 (982) (2,988) (2,364)

Total (16,573) (24,743) (19,927) (18,825)


other measures 2

2.1, 7.1,

7.2

Administered - (1,892) (5,859) (5,487)

Departmental (580) (4,193) (5,238) (6,259)

Total (580) (6,085) (11,097) (11,746)

Australia-Antarctica shipping capability -

development of f inal detailed proposal 9 3.1


Departmental - (100) (100) (100)

Total - (100) (100) (100)

Water - rephase four years of

spending over six years 10 4.1

Administered (12,439) (18,225) (29,381) (29,133)

Departmental - (492) (490) -

Total (12,439) (18,717) (29,871) (29,133)

Murray-Darling Basin Plan - South

Australian River Murray Sustainability

Program - establishment 11 4.1

Administered - - (100,000) (20,000)


Total - - (100,000) (20,000)


24


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

Former Department of Climate Change

and Energy Eff iciency - reduction in

funding 12 7.1, 7.2


Departmental (3,661) (6,915) (6,915) (6,915)

Total (3,661) (6,915) (6,915) (6,915)

Public Service eff iciencies 13 All


Departmental (284) (1,065) (2,101) (2,833)

Total (284) (1,065) (2,101) (2,833)

Reforms to APS management and

eff icient procurement of agency

softw are 14 All


Departmental (735) (1,423) (2,459) (2,629)

Total (735) (1,423) (2,459) (2,629)

Efficiency Dividend – temporary

increase in the rate 14 All


Departmental - (4,073) (8,839) (12,901)

Total - (4,073) (8,839) (12,901)

Total expense measures

Administered (70,763) (54,034) (109,782) 12,546

Departmental (3,376) (19,247) (30,085) (36,304)

Total (74,139) (73,281) (139,867) (23,758)

Capital measures

International Whale and Marine Mammal

Conservation Initiative - extension 6 1.2

Administered capital - - - -

Departmental capital - - - -

Total - - - -


spending over six years 10 4.1

Administered capital (31,810) (109,454) (188,195) (220,381)

Departmental capital - - - -

Total (31,810) (109,454) (188,195) (220,381)

Efficiency Dividend - temporary

increase in the rate 14 All

Administered capital - - - -

Departmental capital - (243) (549) (854)

Total

Total capital measures

Administered (31,810) (109,454) (188,195) (220,381)

Departmental - (243) (549) (854)

Total (31,810) (109,697) (188,744) (221,235)

Prepared on a Government Financial Statistics (fiscal) basis


25

Table 1.2: Agency 2013-14 Measures since Budget

1 This is a cross portfolio measure announced in the Economic Statement 2013.

11 This measure also includes savings of $60 million in 2018-19. The expenditure component of

this measure sits w ith the Departments of the Treasury and Agriculture.

14 This is a cross portfolio savings measure announced in the Economic Statement 2013.

10 This measure w as announced in the 2013-14 MYEFO. Funding of $551.0 million in the Restoring

the Balance in the Murray-Darling Basin programme and $99.0 million in the Sustainable Rural

Water Use and Infrastructure programme w as re-phased to beyond the forw ard estimates

($459.5 million in 2017-18 and $190.5 million in 2018-19). This includes $10.0 million in funding held

by the Department of the Treasury.

13 This is a cross portfolio savings measure announced in the 2013-14 Budget but not previously

reported in a portfolio statement.

5 Provision for this funding w as already included in the forw ard estimates. The measure includes

some funding provided to the Department of the Treasury as payment to states and territories. It

w as announced in the Economic Statement 2013.

6 Funding for this measure w as included in the 2013-14 Budget as a 'decision taken but not yet

announced'.

12 This measure includes further savings reported in the estimates of the Clean Energy Regulator

and the Departments of Foreign Affairs and Trade and Industry. Total cross portfolio savings of

$45 million are provided over the forw ard estimates. This measure w as reported in the 2013-14

MYEFO.

9 This measure includes funding of $3.3 million in 2013-14. This component of the measure w as

included as a 'decision taken but not yet announced' in the 2013-14 Budget. It w as announced in

the Pre-Election Economic and Fiscal Outlook 2013. $0.4 million w ill be appropriated to the

Department of Finance over four years for undertaking a Gatew ay Review of the measure.

4 This measure w as announced in the 2013-14 MYEFO. It provides savings from the Fisheries

Adjustment Assistance Package component to partially offset the Royal Commission into the

Home Insulation Program.

3 This measure w as announced in the Economic Statement 2013.

8 This measure w as announced in the 2013-14 MYEFO and is in addition to savings taken from

this programme as part of the repeal of the Carbon Tax.

2 This is a cross portfolio measure announced in the 2013-14 Mid Year Economic and Fiscal

Outlook (MYEFO).

7 This measure w as announced in the Economic Statement 2013.


26

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Department at

Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and

variations resulting from new measures since the 2013-14 Budget in Appropriation

Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations through other

factors, such parameter adjustments.

Table 1.3: Additional Estimates and Variations to Outcomes from Measures since 2013-14 Budget

Programme 2013-14 2014-15 2015-16 2016-17

impacted $'000 $'000 $'000 $'000

All Outcome measures

Decrease in estimates (departmental)

Public Service eff iciencies All (284) (1,065) (2,101) (2,833)

Reforms to APS management and


softw are

All (735) (1,423) (2,459) (2,629)


increase in rateAll - (4,073) (8,839) (12,901)

Decrease in estimates (departmental-capital)

Eff iciency Dividend - temporary

increase in rateAll - (243) (549) (854)

Net impact on estimates

for all outcome (departmental) (1,019) (6,804) (13,948) (19,217)

Outcome 1

Increase in estimates (administered)

Green Army - establishment 1.1 - 48,345 96,351 144,621

International Whale and Marine

Mammal Conservation Initiative -

extension

1.2 - - - -

Decrease in estimates (administered)

Caring for our Country - redirection

of funding1.1 (1,100) (604) (1,117) (1,092)

Caring for our Country - redirection

of funding1.1 (6,667) - - -

Southern Ocean Flights -

monitoring of w haling and protest

f leets

1.1 (348) - - -

Biodiversity Fund - reduction in

funding and termination1.3 (32,885) (57,600) (52,120) (59,650)

Biodiversity Fund - Reduced

funding1.3 (183) (297) (717) (252)

Repeal of the Carbon Tax -

abolishing land initiatives and

unnecessary bureaucracies

1.3 (17,141) (22,109) (14,731) (14,161)


for Outcome 1 (administered) (58,324) (32,265) 27,666 69,466


27


Programme 2013-14 2014-15 2015-16 2016-17

impacted $'000 $'000 $'000 $'000

Increase in estimates (departmental)

Green Army - establishment 1.1 968 2,335 2,163 2,674

Tasmanian Economic

Diversif ication Projects1.1 - - - -



extension

1.2 - - - -

Southern Ocean Flights -

monitoring of w haling and protest

f leets

1.2 348 - - -


Biodiversity Fund - reduction in

funding and termination1.3 - (2,339) (3,118) (4,977)



unnecessary bureaucracies

1.3 (800) (1,456) (2,378) (1,670)

Increase in estimates (departmental-capital)



extension

1.2 - - - -


for Outcome 1 (departmental) 516 (1,460) (3,333) (3,973)

Outcome 2



abolishing other measures -

Revenue

2.1 - 7,200 3,000 4,000



abolishing other measures2.1 - (991) (5,183) (4,983)

Carbon pricing mechanism -

replacing f ixed price w ith an

emissions trading scheme from 1

July 2014 - Revenue

2.1 - (150,000) - -


forgone revenue from repeal of the

Carbon Tax - Revenue

2.1 (10,000) (50,000) (50,000) (90,000)


for Outcome 2 (administered) (10,000) (193,791) (52,183) (90,983)



abolishing other measures 1 2.1 - (4,193) (5,238) (6,259)


for Outcome 2 (departmental) - (4,193) (5,238) (6,259)


28


Programme 2013-14 2014-15 2015-16 2016-17

impacted $'000 $'000 $'000 $'000

Outcome 3


Australia-Antarctica shipping

capability - development of f inal

detailed proposal

3.1 - - - -


Australia-Antarctica shipping

capability - development of f inal

detailed proposal

3.1 - (100) (100) (100)


for Outcome 3 (departmental) - (100) (100) (100)

Outcome 4



spending over six years4.1 (12,439) (18,225) (29,381) (29,133)

Murray-Darling Basin Plan - South

Australian River Murray

Sustainability Programme -

establishment

4.1 - - (100,000) (20,000)

Decrease in estimates (administered-capital)


spending over six years4.1 (31,810) (109,454) (188,195) (220,381)


for Outcome 4 (administered) (44,249) (127,679) (317,576) (269,514)


spending over six years4.1 - (492) (490) -


for Outcome 4 (departmental) - (492) (490) -

Outcome 5


Tasmanian Economic

Diversif ication Projects5.1 - - - -


for Outcome 5 (administered) - - - -


29


Programme 2013-14 2014-15 2015-16 2016-17

impacted $'000 $'000 $'000 $'000

Outcome 7

Decrease in estimates (administered) - - - -



unnecessary bureacracies 1

7.1 & 7.2 - (1,652) (2,208) (2,300)


abolishing other measures 1 7.1 & 7.2 - (901) (676) (504)


for Outcome 7 (administered) - (2,553) (2,884) (2,804)




unnecessary bureaucracies 1

7.1 & 7.2 1,368 474 - -




unnecessary bureaucracies 1

7.1 & 7.2 - - (610) (694)


abolishing other measures 1 7.1 & 7.2 (580) - - -

Former Department of Climate

Change and Energy Efficiency -

reduction in funding

7.1 & 7.2 (3,661) (6,915) (6,915) (6,915)


for Outcome 7 (departmental) (2,873) (6,441) (7,525) (7,609)

1 This funding includes components w hich previously w ere the responsibility of the former

Portfolio of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. The

savings w ere taken before a section 32 determination under the Financial Management and

Accountability Act 1997 w as f inalised to transfer this funding to the Department of the

Environment.


30

Table 1.4: Additional Estimates and Variations to Outcomes from Other Variations Programme 2013-14 2014-15 2015-16 2016-17

impacted $'000 $'000 $'000 $'000

Outcome 1


Other variations 1.1 - - 1,096 3,324


Parameter adjustment 1.1 - (151) (257) (311)


for Outcome 1 (administered) - (151) 839 3,013


Other variations All - 3,397 3,517 2,934


Parameter adjustment All - (284) (438) (523)

Other variations All (4,331) - - -


Other variations All - 109 - -



Other variations All (611) - (298) (300)


for Outcome 1 (departmental) (4,942) 3,215 2,768 2,095

Outcome 2


Other variations All 327 - - -



Other variations All - (2,334) (2,334) (2,526)



Other variations All (70) (1,044) (392) (312)


for Outcome 2 (departmental) 257 (3,499) (2,888) (3,037)

Outcome 3



Other variations 3.1 (124) (307) (317) (229)


Other variations 3.1 1,330 1,607 1,749 1,766




for Outcome 3 (departmental) 1,206 1,006 945 961


31

Table 1.4: Additional Estimates and Variations to Outcomes from Other Variations

Programme 2013-14 2014-15 2015-16 2016-17

impacted $'000 $'000 $'000 $'000

Outcome 4


Other variations 4.1 4,332 4,765 2,418 4,624





Other variations 4.1 (439) (282) (279) (450)


for Outcome 4 (departmental) 3,893 4,265 1,770 3,847

Outcome 5


Other variations All 773 - 775 -



Other variations All - (1,353) - (510)



Other variations All (231) (335) (605) (527)


for Outcome 5 (departmental) 542 (1,931) (238) (1,531)

Outcome 6


Other variations 6.1 1,738 - - -



Other variations 6.1 - (2,480) (2,440) (2,711)


Other variations 6.1 21 - - -



Other variations 6.1 (55) (175) (177)


for Outcome 6 (departmental) 1,759 (2,559) (2,653) (2,930)


32


Programme 2013-14 2014-15 2015-16 2016-17

impacted $'000 $'000 $'000 $'000

Outcome 7


Section 32 transfer from Industry

for Climate Change functionsAll 14,775 10,209 9,501 8,228

Increase in estimates (administered non-operating)


for Climate Change functions 1 All 88 - - -


for Outcome 7 (administered) 14,863 10,209 9,501 8,228









Increase in estimates (departmental non-operating)


for Climate Change functions 1 All 38,141 - - -


for Outcome 7 (departmental) 68,817 39,501 37,957 36,5721 Funding transferred from the Department of Industry as a result of the AAO changes

announced on 18 September 2013.


33

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Department

through Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2013-14 2012-13 2013-14 2013-14 Additional Reduced

Available Budget Revised Estimates Estimates

($'000) ($'000) ($'000) ($'000) ($'000)

ADMINISTERED ITEMS

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

Commonw ealth protected areas

292,825 578,000 519,676 - (58,324)

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 w aste, pollutants

and hazardous substances

11,005 25,178 25,178 - -

Outcome 4

Adaptation to climate change,

w ise w ater use, secure w ater

supplies and improved health of

rivers, w aterw ays and

freshw ater ecosystems by

supporting research, and

reforming the management and

use of w ater resources

364,029 246,121 233,682 - (12,439)

Outcome 5

Increased protection,

aw areness and appreciation of

Australia’s environment and

heritage through regulating

matters of national

environmental signif icance and

the identif ication, conservation

and celebration of natural,

indigenous and historic places

of national and World Heritage

signif icance

11,666 9,743 10,093 350 -


34



($'000) ($'000) ($'000) ($'000) ($'000)

Outcome 6

Protection and restoration of

environmental assets through

the management and use of

Commonw ealth environmental

w ater

24,700 27,433 27,433 - -

Outcome 7

Reduction of Australia's

greenhouse gas emissions

adaption to the impacts of

climate change, and contribution

tow ards the negotiation of an

effective global solution to

climate change, through the

development and implementation

of a natural response to climate

change

- - - - -

Total 704,225 886,475 816,062 350 (70,763)


35



($'000) ($'000) ($'000) ($'000) ($'000)

DEPARTMENTAL PROGRAMS

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



119,137 113,387 110,528 - (2,859)

Outcome 2


Australia’s population,

communities and environment

through coordination and

development of sustainable

population and communities

policies and the reduction and

regulation of w aste, pollutants

and hazardous substances

38,839 44,010 44,168 158 -

Outcome 3

Advancement of Australia’s

strategic, scientif ic,

environmental and economic

interests in the Antarctic by

protecting, administering and

researching the region

112,757 118,597 122,771 4,174 -

Outcome 4

Adaptation to climate change,

w ise w ater use, secure w ater

supplies and improved health of

rivers, w aterw ays and

freshw ater ecosystems by

supporting research, and

reforming the management and

use of w ater resources

83,606 76,583 80,301 3,718 -

Outcome 5

Increased protection,

aw areness and appreciation of

Australia’s environment and

heritage through regulating

matters of national

environmental signif icance and

the identif ication, conservation

and celebration of natural,

indigenous and historic places

of national and World Heritage

signif icance

88,777 90,884 91,216 332 -


36

Table 1.5: Appropriation Bill (No. 3) 2013-14

2012-13 2013-14 2013-14 Additional Reduced


($'000) ($'000) ($'000) ($'000) ($'000)

Outcome 6


environmental assets through

the management and use of


w ater

12,642 9,926 11,662 1,736 -

Outcome 7



adaption to the impacts of

climate change, and contribution

tow ards the negotiation of an

effective global solution to

climate change, through the

development and implementation

of a natural response to climate

change

- - (2,293) - (2,293)

Total 455,758 453,387 458,353 10,118 (5,152)

Total administered and

departmental 1,159,983 1,339,862 1,274,415 10,468 (75,915)


37



($'000) ($'000) ($'000) ($'000) ($'000)

PAYMENTS TO STATES, ACT, NT

AND LOCAL GOVERNMENT

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



- - - - -

Outcome 2


Australia’s population, communities

and environment through

coordination and development of

sustainable population and

communities policies and the

reduction and regulation of w aste,

pollutants and hazardous

substances

- - - - -

Outcome 3


strategic, scientif ic, environmental

and economic interests in the

Antarctic by protecting,

administering and researching the

region

- - - - -

Outcome 4

Adaptation to climate change, w ise

w ater use, secure w ater supplies

and improved health of rivers,

w aterw ays and freshw ater

ecosystems by supporting

research, and reforming the

management and use of w ater

resources

17,410 5,204 5,204 - -

Outcome 5

Increased protection, aw areness

and appreciation of Australia’s

environment and heritage through

regulating matters of national

environmental signif icance and the

identif ication, conservation and

celebration of natural, indigenous

and historic places of national and

World Heritage signif icance

360 800 800 - -


38



($'000) ($'000) ($'000) ($'000) ($'000)

Outcome 6


environmental assets through the

management and use of


w ater

- - - - -

Outcome 7



adaption to the impacts of climate

change, and contribution tow ards

the negotiation of an effective

global solution to climate change,

through the development and

implementation of a natural

response to climate change

- - - - -

OTHER ADMINISTERED ITEMS

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



- - - - -

Outcome 2


Australia’s population, communities

and environment through

coordination and development of

sustainable population and

communities policies and the

reduction and regulation of w aste,

pollutants and hazardous

substances

- - - - -

Outcome 3


strategic, scientif ic, environmental

and economic interests in the

Antarctic by protecting,

administering and researching the

region

- - - - -


39



($'000) ($'000) ($'000) ($'000) ($'000)

Outcome 4

Adaptation to climate change, w ise

w ater use, secure w ater supplies

and improved health of rivers,

w aterw ays and freshw ater

ecosystems by supporting

research, and reforming the

management and use of w ater

resources

- - - - -

Outcome 5

Increased protection, aw areness

and appreciation of Australia’s

environment and heritage through

regulating matters of national

environmental signif icance and the

identif ication, conservation and

celebration of natural, indigenous

and historic places of national and

World Heritage signif icance

- - - - -

Outcome 6



management and use of


w ater

- - - - -

Outcome 7



adaption to the impacts of climate

change, and contribution tow ards

the negotiation of an effective

global solution to climate change,

through the development and

implementation of a natural

response to climate change

- - - - -

Total 17,770 6,004 6,004 - -

Non-operating

Equity injections1 1,872 2,467 40,608 38,141 -

Administered assets

and liabilities 1 162,180 6,261 6,349 88 -

Total non-operating 164,052 8,728 46,957 38,229 -

Department of the Environment

Total 181,822 14,732 52,961 38,229 -

1 Recognise prior year funding transferred from the Department of Industry as a result of the

AAO changes announced on 18 September 2013.


40

Section 2: Revisions to Agency Resources and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

2013-14 Portfolio Budget

Statements

2013-14 Portfolio Additional

Estimates Statements

Outcome 1: The conservation and

protection of Australia's terrestrial and

marine biodiversity and ecosystems

through supporting research, developing

information, supporting natural resource

management, and establishing and

managing Commonwealth protected

areas.

Outcome 1: 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.

Program 1.1: Sustainable Management of

Natural Resources and the Environment.

Program 1.1: Sustainable Management of

Natural Resources and the Environment.

Program 1.2: Environmental Information

and Research.

Program 1.2: Environmental Information

and Research.

Program 1.3: Carbon Pollution Reduction -

Land Sector Initiatives.

Program 1.3: Carbon Pollution Reduction -

Land Sector Initiatives.

Outcome 2: Improved sustainability of

Australia's population, communities and

environment through coordination and

development of sustainable population

and communities policies, and the

reduction and regulation of waste,

pollutants and hazardous substances.

Outcome 2: 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.

Program 2.1: Management of Hazardous

Wastes, Substances and Pollutants.

Program 2.1: Management of Hazardous

Wastes, Substances and Pollutants.

Outcome 3: Advancement of Australia's

strategic, scientific, environmental and

economic interests in the Antarctic by


researching the region.

Outcome 3: Advancement of Australia's

strategic, scientific, environmental and

economic interests in the Antarctic by


researching the region.

Program 3.1: Antarctica: Science, Policy

and Presence.

Program 3.1: Antarctica: Science, Policy

and Presence.


41

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 the use of water

resources.

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 the use of water

resources.

Program 4.1: Water Reform. Program 4.1: Water Reform.

Outcome 5: Increased protection,

awareness and appreciation of

Australia's environment and heritage

through regulating matters of national

environmental significance and the

identification, conservation and

celebration of natural, Indigenous and

historic places of national and World

Heritage significance.

Outcome 5: 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.

Program 5.1: Conservation of Australia's

Heritage and Environment.

Program 5.1: Conservation of Australia's

Heritage and Environment.

Program 5.2: Environmental Regulation. Program 5.2: Environmental Regulation.

Outcome 6: Protection and restoration of


management and use of Commonwealth

and environmental water.

Outcome 6: Protection and restoration of


management and use of Commonwealth

and environmental water.

Program 6.1: Commonwealth

Environmental Water.

Program 6.1: Commonwealth

Environmental Water.

Outcome 7: Reduction of Australia's

greenhouse gas emissions, adaptation to

the impacts of climate change, and

contribution towards the negotiation of

an effective global solution to climate

change, through the development and

implementation of a national response to

climate change.

Program 7.1: Reducing Australia's

Greenhouse Gas Emissions.

Program 7.2: Adapting to Climate Change.


42

OUTCOME 1: THE CONSERVATION AND PROTECTION OF AUSTRALIA’S

TERRESTRIAL AND MARINE BIODIVERSITY AND ECOSYSTEMS THROUGH

SUPPORTING RESEARCH, DEVELOPING INFORMATION, SUPPORTING

NATURAL RESOURCE MANAGEMENT, AND ESTABLISHING AND

MANAGING COMMONWEALTH PROTECTED AREAS.

Outcome 1 Strategy

The Department is committed to conserving and protecting Australia’s unique

biodiversity through provision of policy advice and the delivery of programmes,

information and research.

The Department is progressing design and implementation of the following

commitments, which will amend the Outcome 1 Strategy published in the 2013-14

Budget:

the National Landcare Programme will replace the Caring for our Country

initiative in 2014-15;

Reef 2050 Plan will contribute to the long term environmental protection of the

Great Barrier Reef;

the Government’s Commonwealth marine reserves proclaimed in November

2012 will be reviewed; and

the Green Army will be established.

The Green Army measure, announced in the 2013-14 Mid Year Economic and Fiscal

Outlook, will deliver local projects that support regional, national and international

conservation management objectives while also providing skills and training to

participants. The Department is supporting the Government’s natural resource

management priorities, in particular, a simple, local and long term approach, through

implementation of the National Landcare Programme.

The Department has made a contribution of $0.3 million in 2013-14 to undertake three

surveillance flights over the Southern Ocean.


43

Table 2.1.1 Budgeted Expenses for Outcome 1 Note: The Departmental appropriation splits and totals are indicative estimates and may change

during the course of the budget year as government priorities change.

2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Programme 1.1: Sustainable Management of Natural Resources

and the Environment

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 252,733 345,359

Less Special Accounts (162,461) (274,894)

Special Accounts

Natural Heritage Trust of Australia Account 162,461 274,894

Departmental expenses

Departmental appropriation 1 101,193 89,622

Revenues from independent sources (s31) 23,274 30,010

Expenses not requiring appropriation in the Budget year 2 4,062 2,480

Total for Programme 1.1 381,262 467,471

Programme 1.2: Environmental Information and Research






Expenses not requiring appropriation in the Budget year 2 483 476


Programme 1.3: Carbon Pollution Reduction – Land Sector Initiatives





Revenues from independent sources (s31) - 235



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.


44

Table 2.1.1 Budgeted Expenses for Outcome 1 2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Outcome 1 Totals by appropriation type

Administered Expenses


Special Accounts 162,461 274,894





Total expenses for Outcome 1 3 458,816 662,928

2012-13 2013-14

Average Staffing Level (number) 567 504

1 Outcome 1 also has a departmental capital budget of $2.401 million in 2013- 14.

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

resources received free of charge and other gains.

3 Indigenous functions will be transferred from the Department of the Environment consistent with the

AAO change announced on 18 September 2013. This revised arrangement will be reflected in the next

PB Statement.

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

The following Objective is in addition to those outlined in the 2013-14 Portfolio Budget

Statements:

Green Army Programme:

To support the delivery of environmental and heritage conservation outcomes at

the local, regional and national level through engaging and deploying young

Australians to participate in Green Army teams.


45

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

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

Actual Revised Forw ard Forw ard Forw ard

budget year 1 year 2 year 3

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

Annual administered expenses:

Caring for our Country: 1

Natural Heritage Trust 162,461 274,894 279,952 330,945 333,000

Less Special Accounts (162,461) (274,894) (279,952) (330,945) (333,000)

Environmental Stew ardship

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

Working on Country 57,337 46,783 51,227 52,035 52,610

Tasmanian Forests Agreement -

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

Caring for our Country - National

Wildlife Corridor Plan 1,609 3,807 - - -

Great Barrier Reef Foundation -

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

Grants to Voluntary Environment,

Sustainability and Heritage

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

Green Army - - 48,345 97,447 147,945

Special Account Expenses:

Natural Heritage Trust of

Australia Account 162,461 274,894 279,952 330,945 333,000

Annual departmental expenses:

Departmental Programme Support 2 122,967 119,632 113,562 111,245 110,299

Grants to Voluntary Environment,

Sustainability and Heritage

Organisations 1,500 - - - -

Expenses not requiring appropriation

in the Budget year:

Depreciation and amortisation 3,099 2,377 2,722 1,557 1,438

Other 3 963 103 118 118 123

Total programme expenses 381,262 467,471 522,846 614,849 667,341

1 Part of Caring for our Country funding has been transferred to the Department of the Treasury

in 2012- 13 to enable payments required under the Federal Financial Relations Act 2009.2 Includes other revenue in addition to Appropriation and Sale of Goods and Services.

3 Includes resources received free of charge, other gains and impairment of financial assets.


46

Program 1.1 Deliverables

The following Deliverables are in addition to those outlined in the 2013-14 Portfolio

Budget Statements:


Green Army Programme Guidelines, describing the design and delivery of the

programme are produced.

A tender process to assess and select suitable service provider/s is undertaken.

A project selection process will be conducted to assess and select suitable Green

Army projects for Rounds 1 and 2.

Program 1.1 Key Performance Indicators

The following Key Performance Indicators are in addition to those outlined in the

2013-14 Portfolio Budget Statements:


Completion of initial programme design, with the programme ready for delivery

from 1 July 2014.

Engagement of one or more service providers to recruit and deploy Green Army

teams from 1 July 2014.

Selection of up to 250 projects, via competitive assessment rounds (Rounds 1 and

2), for Green Army team deployment from 1 July 2014.


47

Program 1.2 Objective: Environmental Information and Research

There have been no changes to the Program 1.2 Objective since the 2013-14 Budget.

Program 1.2 Expenses: Environmental Information and Research 2012-13 2013-14 2014-15 2015-16 2016-17



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


National Environment Research Programme 19,487 20,520 20,520 24,020 24,020

International Whale Science Initiative 1,709 1,688 1,000 - -

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

Community Infrastructure Grants

- Cumberland Plains 4,782 - - - -




in the Budget year:

Depreciation and amortisation 448 461 339 133 119

Other 2 35 15 15 10 10


1 Includes other revenue in addition to Appropriation and Sale of Goods and Services.

2 Includes resources received free of charge and other gains.


There have been no changes to the Program 1.2 Deliverables since the 2013-14 Budget.


There have been no changes to the Program 1.2 Key Performance Indicators since the

2013-14 Budget.


48

Program 1.3 Objective: Carbon Pollution Reduction – Land Sector Initiatives

There have been no changes to the Program 1.3 Objectives since the 2013-14 Budget,

noting that the key programmes delivered under Programme 1.3 will be abolished as

part of the repeal of the carbon tax. Existing programme commitments will be

honoured, but no new commitments will be entered into.

the Biodiversity Fund will terminate on 30 June 2018;

the Indigenous Carbon Farming Fund will terminate on 30 June 2017;

the Land Sector Carbon and Biodiversity Board has been abolished; and

Regional Natural Resource Management (NRM) Planning for Climate Change

will terminate on 30 June 2016.

Program 1.3 Expenses: Carbon Pollution Reduction – Land Sector Initiatives 2012-13 2013-14 2014-15 2015-16 2016-17



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


Biodiversity Fund 20,452 129,405 85,867 70,165 42,423

Regional NRM Planning for Climate

Change 3,744 18,000 1,146 1,245 -

Indigenous Carbon Farming Fund 1,280 2,674 735 - -




in the Budget year:


Other 2 12 20 15 20 15





There have been no changes to the Program 1.3 Deliverables since the 2013-14 Budget,

noting that the key programmes delivered under Programme 1.3 will be abolished as

part of the repeal of the carbon tax.



2013-14 Budget, noting that the key programmes delivered under Programme 1.3 will

be abolished as part of the repeal of the carbon tax.


49

OUTCOME 2: IMPROVED SUSTAINABILITY OF AUSTRALIA’S

POPULATION, COMMUNITIES AND ENVIRONMENT THROUGH

COORDINATION AND DEVELOPMENT OF SUSTAINABLE POPULATION AND

COMMUNITIES POLICIES, AND THE REDUCTION AND REGULATION OF

WASTE, POLLUTANTS AND HAZARDOUS SUBSTANCES.

Outcome 2 Strategy

The following Strategy updates that outlined in the 2013-14 Portfolio Budget

Statements.

On 13 November 2013, the Government introduced bills into the Parliament to repeal

the equivalent carbon price on synthetic greenhouse gases. The application of an

equivalent carbon price to synthetic greenhouse gases commenced on 1 July 2012 and

is planned to be repealed from 1 July 2014.

On 8 November 2013, the Government announced its decision to abolish the National

Sustainability Council, with the functions of the Council to be absorbed by the

Department.


50



2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Programme 2.1: Management of Hazardous Wastes,

Substances and Pollutants



Special Accounts

Ozone & Synthetic Greenhouse Gas Account 13,612 11,933






Programme 2.2: Sustainable Communities





Revenues from independent sources (s31) 32 117











Total expenses for Outcome 2 81,395 98,041

2012-13 2013-14





Outcome 2: Improved sustainability of Australia's

population, communities and environment through

coordination and development of sustainable population

and communities policies, and the reduction and regulation

of waste, pollutants and hazardous substances.


51

Program 2.1 Objective


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

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



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


Destruction of SGG and Ozone Depleting

Substances - 1,192 - - -

Other 15,875 13,841 13,574 13,333 13,333

Less Special Accounts (13,612) (11,933) (12,346) (12,804) (12,804)


Ozone & Synthetic Greenhouse Gas

Account 13,612 11,933 12,346 12,804 12,804



Expenses not requiring appropriation in

the Budget year:


Other 2 70 266 271 266 271





The following Deliverables update those outlined in the 2013-14 Portfolio Budget

Statements:

Applying an equivalent carbon price to the import and manufacture of synthetic

greenhouse gases, and arrangements for destruction of waste synthetic

greenhouse gases and ozone depleting substances until 30 June 2014.

Implementing transitional arrangements for the export refund scheme and for

imports made between 1 April 2014 and 30 June 2014 where the synthetic

greenhouse gases were entered into a warehouse licensed under the Customs Act

1901.


52


The following Key Performance Indicator updates those outlined in the 2013-14

Portfolio Budget Statements:

The implementation of the equivalent carbon price on imports and manufacture

of synthetic greenhouse gases and arrangements for destruction of waste

synthetic green house gases is planned to be repealed from 1 July 2014 as part of

the Government’s repeal of the carbon tax.


53



Program 2.2 Expenses: Sustainable Communities 2012-13 2013-14 2014-15 2015-16 2016-17



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


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




the Budget year:


Other 3 8 10 10 5 5


1 For the Sustainable Australia - Sustainable Planning Initiative refer to Programme 5.2 Environmental

Regulation in Table 2.1.5.2 Includes other revenue in addition to Appropriation and Sale of Goods and Services.



With the abolition of the National Sustainability Council the Government is giving

consideration to how the Council’s functions will be absorbed by the Department.



2013-14 Budget.


54

OUTCOME 3: ADVANCEMENT OF AUSTRALIA’S STRATEGIC, SCIENTIFIC, ENVIRONMENTAL AND ECONOMIC INTERESTS IN THE ANTARCTIC BY

PROTECTING, ADMINISTERING AND RESEARCHING THE REGION.

Outcome 3 Strategy

The following Strategy is in addition to that outlined in the 2013-14 Portfolio Budget

Statements.

The Department is supporting preparation of a 20 Year Australian Antarctic Strategic

Plan. This involves a comprehensive review of Australia’s Antarctic engagement,

including: Australia’s Antarctic strategic interests; capacity to undertake and support

priority science; presence in the Antarctic; and international engagement.



2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Programme 3.1: Antarctica: Science, Policy and Presence












2012-13 2013-14




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

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

environmental and economic interests in the Antarctic by

protecting, administering and researching the region.




55

Program 3.1 Expenses: Antarctica: Science, Policy and Presence 2012-13 2013-14 2014-15 2015-16 2016-17



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




the Budget year:


Approved departmental operating loss - 15,880 15,880 15,880 -

Finance Costs 12,640 - - - -

Makegood provision increases 1,813 - - - -

Other 2 3,312 - - - -


1 Includes expenses associated with other revenue in addition to Appropriation and Sale

of Goods and Services. This revenue is recognised as contracts for services are confirmed

over time, thereby explaining the profile in 2013- 14 and the forward years (no forward

years contracts have been confirmed at this time).2 Includes expenses relating to Aurora Australis life extension works funded from existing resources.


The following Deliverable is in addition to those outlined in the 2013-14 Portfolio

Budget Statements:

Support delivery of a 20 Year Australian Antarctic Strategic Plan.



2013-14 Budget.


56

OUTCOME 4: ADAPTATION TO CLIMATE CHANGE, WISE WATER USE, SECURE WATER SUPPLIES AND IMPROVED HEALTH OF RIVERS, WATERWAYS AND FRESHWATER ECOSYSTEMS BY SUPPORTING

RESEARCH, AND REFORMING THE MANAGEMENT AND USE OF WATER

RESOURCES.

Outcome 4 Strategy


Statements.

A measure announced in the 2013-14 Mid Year Economic Fiscal Outlook re-phases

$650.0 million of spending on water buybacks and infrastructure from four years to six

years. The Restoring the Balance in the Murray-Darling Basin programme and the

Sustainable Rural Water Use and Infrastructure programme have been amalgamated

to provide greater flexibility in managing the Government’s water reform priorities,

reflecting the Government’s commitment to restoring the Murray-Darling Basin to

health while ensuring the viability of the Basin’s food and fibre producing

communities.


57



2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Programme 4.1: Water Reform



Other services (Appropriation Act No. 2 and Bill No. 4) 17,410 5,204

Special Accounts

Water Eff iciency Labelling and Standards Account 3,427 1,913

Services for Other Entities and Trust Monies Special Account - 510









Other services (Appropriation Act No. 2 and Bill No. 4) 17,410 5,204







2012-13 2013-14




resources received free of charge, other gains and impairment on water entitlements, partially offset

by the transfer of water entitlements from the Sustainable Rural Water Use and Infrastructure Programme.

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

secure water supplies and improved health of rivers,

waterways and freshwater ecosystems by supporting

research, and reforming the management and use of water

resources.


58


There have been no changes to the Program 4.1 Objective since the 2013–14 Budget.

Program 4.1 Expenses: Water Reform 2012-13 2013-14 2014-15 2015-16 2016-17



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


Sustainable Rural Water Use and

Infrastructure 1 259,253 191,061 279,871 563,926 348,575

Restoring the Balance in the Basin

(non capital expenditure) 147 - - - -

Water Smart Australia 7,731 - - - -

National Urban Water and Desalination

Plan 63,294 21,295 26,559 13,860 -

National Water Security Plan for Cities

and Tow ns 13,666 - - - -

Water Resources Assessment and

Research Grant 175 175 175 175 175

Independent Expert Scientif ic Committee

on Coal Seam Gas and Large

Coal Mining - 885 885 885 1,035

Commonw ealth Contribution under

the Murray-Darling Basin Agreement 2 19,320 20,266 21,077 22,300 23,100

National Urban Water and Desalination

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

National Water Security Plan for Cities

and Tow ns (SPP) 13,092 4,254 - - -

Sustainable Rural Water Use and

Infrastructure (SPP) 3,368 - - - -


Water Eff iciency Labelling and

Standards Account 3,427 1,913 1,948 1,963 1,981

Water for the Environment

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

Services for Other Entities and

Trust Moneys Special Account - 510 510 510 510


59

Program 4.1 Expenses: Water Reform 2012-13 2013-14 2014-15 2015-16 2016-17



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



Science Based Framew ork for

Coal Seam Gas and Coal Mining

Impacts on Water 24,519 28,252 28,332 28,329 13,875


in the Budget year:

Depreciation and amortisation 2,705 2,312 2,116 1,213 961

Approved departmental operating loss - - - - -

Other 4 136 103 93 93 83

Asset impairment expense 5 224,216 - - - -


1 The funding for Restoring the Balance of the Basin has been absorbed under the Sustainable Rural

Water Use and Infrastructure Programme from November 2013.2 The level of funding provided to the Murray- Darling Basin Authority under the MDB Agreement

has been agreed for the years 2012- 13 to 2014- 15. The contribution for 2015- 16 and 2016- 17 above

is an estimate.3 Includes other revenue in addition to Appropriation and Sale of Goods and Services.


5 Includes adjustments for impairment on water entitlements, partially offset by the transfer of water

entitlements from grant recipients of the Sustainable Rural Water Use and Infrastructure Programme. Program 4.1 Deliverables



There have been no changes to the Program 4.1 Key Performance Indicators since the 2013-14 Budget.


60

OUTCOME 5: INCREASED PROTECTION, AWARENESS AND

APPRECIATION OF AUSTRALIA’S ENVIRONMENT AND HERITAGE

THROUGH REGULATING MATTERS OF NATIONAL ENVIRONMENTAL

SIGNIFICANCE AND THE IDENTIFICATION, CONSERVATION AND

CELEBRATION OF NATURAL, INDIGENOUS AND HISTORIC PLACES OF

NATIONAL AND WORLD HERITAGE SIGNIFICANCE.

Outcome 5 Strategy


Statements.

A key aspect of the Department’s responsibilities is the administration of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The Department is working with the Government to implement the following election commitments:

Regulatory reform to reduce regulation. This includes reducing duplication of

assessments and approvals by creating a one stop shop for environmental

approvals under the EPBC Act by using state and territory government systems;

Streamlining approval processes for offshore petroleum activities with the

National Offshore Petroleum Safety and Environmental Management Authority

serving as the sole Commonwealth assessor of offshore development.

Priorities include working with the states and territories to streamline assessment

processes between jurisdictions, progressively publishing more guidance to help

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

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


61



2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Programme 5.1: Conservation of Australia's Heritage and

Environment








Programme 5.2: Environmental Regulation


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - 751

Other services (Appropriation Act No. 2 and Bill No. 4) 360 800









Other services (Appropriation Act No. 2 and Bill No. 4) 360 800





Total expenses for Outcome 5 3 114,723 114,241

2012-13 2013-14


1 Outcome 5 has a departmental capital budget of $3.364 million in 2013- 14.


resources received free of charge and other gains. 3 Indigenous functions will be transferred from the Department of the Environment consistent with the AAO

change announced on 18 September 2013. This revised arrangement will be reflected in the next PB

Statement.

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.


62



Program 5.1 Expenses: Conservation of Australia’s Heritage and Environment 2012-13 2013-14 2014-15 2015-16 2016-17



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


Heritage Grants 1 7,150 4,420 4,420 4,420 4,420

National Trusts Partnership Programme 912 927 927 927 927

Indigenous Heritage Programme 3,606 3,645 3,645 3,645 3,645

Replica of Maw son's Hut - 350 - - -




the Budget year:

Depreciation and amortisation 1,707 1,323 1,383 908 835

Other 3 222 49 49 49 49


1 This funding supports the Protection and Conservation of Australia's Heritage programme

(the 'Protecting National Historic Sites programme')2 Includes other revenue in addition to Appropriation and Sale of Goods and Services.

3 Includes resources received free of charge, other gains and impairment of financial assets.





2013-14 Budget.


63


The following Objective is in addition to those outlined in the 2013-14 Portfolio Budget Statements:

Implement the one stop shop policy for environmental approvals in a manner

that delivers greater regulatory efficiency, while maintaining high environmental

standards as required under the EPBC Act.

Program 5.2 Expenses: Environmental Regulation 2012-13 2013-14 2014-15 2015-16 2016-17



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


Remediation of land affected by the Tiw i

Islands Plantation Project - 612 194 194 -

Environment Protection and Biodiversity

Conservation Act - Water Resources

Amendment - 139 259 259 259

Sustainable Australia - Sustainable

Regional Development (SPP) 1 360 800 400 - -




the Budget year:


Other 3 111 108 113 123 127


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






64


The following Key Performance Indicators are in addition to those outlined in the 2013-14 Portfolio Budget Statements:

All assessment bilateral agreements with state and territory governments

reviewed and updated.

Signed Memorandum of Understanding with each jurisdiction that commits to

streamlining environmental assessments and negotiate an approval bilateral

agreement and to prioritise strategic assessments and other complementary

streamlining measures.

Approval bilateral agreements, as comprehensive in scope as possible, negotiated

with all willing jurisdictions whilst maintaining environmental standards

established in the EPBC Act.

Development of an assurance framework for the one stop shop that provides

confidence about the implementation of the approval bilateral agreements.


65

OUTCOME 6: PROTECTION AND RESTORATION OF ENVIRONMENTAL

ASSETS THROUGH THE MANAGEMENT AND USE OF COMMONWEALTH

ENVIRONMENTAL WATER.

Outcome 6 Strategy

There have been no changes to the Outcome 6 Strategy since the 2013-14 Budget.



2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Programme 6.1: Commonwealth Environmental Water



Less Special Account (15,408) (29,391)

Special Accounts

Environmental Water Holdings Special Account 15,408 29,391














2012-13 2013-14


1 Outcome 6 has a departmental capital budget of $0.344 million in 2013- 14.



Outcome 6: Protection and restoration of environmental

assets through the management and use of

Commonwealth environmental water.


66



Program 6.1 Expenses: Commonwealth Environmental Water 2012-13 2013-14 2014-15 2015-16 2016-17



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


Commonw ealth Environmental Water

Office 15,408 29,391 26,226 28,021 29,160

Less Special Accounts:

Environmental Water Holdings

Special Account (15,408) (29,391) (26,226) (28,021) (29,160)


Environmental Water Holdings

Special Account 15,408 29,391 26,226 28,021 29,160




in the Budget year:


Other 2 25 20 10 10 10







There have been no changes to the Program 6.1 Key Performance Indicators since the 2013-14 Budget.


67

OUTCOME 7: REDUCTION OF AUSTRALIA’S GREENHOUSE GAS

EMISSIONS, ADAPTATION TO THE IMPACTS OF CLIMATE CHANGE, AND

CONTRIBUTION TOWARDS THE NEGOTIATION OF AN EFFECTIVE GLOBAL

SOLUTION TO CLIMATE CHANGE, THROUGH THE DEVELOPMENT AND

IMPLEMENTATION OF A NATIONAL RESPONSE TO CLIMATE CHANGE.

Outcome 7 Strategy

The Department contributes to the Government’s Clean Air policy through its work implementing policies and programmes that will reduce Australia’s greenhouse gas emissions and facilitate adaptation to climate impacts. It further contributes to the reduction of cost of living pressures on households through supporting the repeal of the carbon tax. This strategy is delivered through the following areas of activity:

Achieving Australia’s greenhouse gas emissions reduction targets through

mechanisms that drive cost effective emissions reductions, including through

implementation of the Government’s Direct Action plan and support for

renewable energy technologies.

Supporting Australia’s capacity to adapt to a changing climate through well-

coordinated climate science, and practical guidance to assist decision makers.


68



2012-13 2013-14

Actual Revised

expenses estimated

expenses

$'000 $'000

Programme 7.1: Reducing Australia's Greenhouse Gas

Emissions 1


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - 3,098


Departmental appropriation 3 - 22,341


Expenses not requiring appropriation in the Budget year 4 - 1,085

Total for Programme 7.1 - 26,907

Programme 7.2: Adapting to Climate Change 2





Revenues from independent sources (s31) - -

Expenses not requiring appropriation in the Budget year 4 - 214

Total for Programme 7.2 - 16,289






Expenses not requiring appropriation in the Budget year 4 - 1,299

Total expenses for Outcome 7 - 43,196

2012-13 2013-14

Average Staffing Level (number) - 150 1 Reducing Australia's Greenhouse Gas Emissions programme was transferred from the Department

of Industry as the result of Administrative Arrangement Order (AAO) changes dated 18 September 2013

(please note that the 2012- 13 Actual expenses are reported by the Department of Industry).2 Adapting to Climate Change programme was transferred from the Department of Industry

as the result of Administrative Arrangement Order (AAO) changes dated 18 September 2013.

(please note that the 2012- 13 Actual expenses are reported by the Department of Industry).3 Outcome 7 has a departmental capital budget of $1.644 million in 2013- 14.



Outcome 7: Reduction of Australia's greenhouse gas

emissions, adaption to the impacts of climate change, and

contribution towards the negotiation of an effective global

solution to climate change, through the development and

implementation of a national response to climate change.


69

Program 7.1 Objective: Reducing Australia’s Greenhouse Gas Emissions

The Objective of Program 7.1 is to deliver Australia’s greenhouse gas emissions reduction targets through mechanisms that drive cost effective emissions reductions, including through the Direct Action Plan that includes the Emissions Reduction Fund (ERF) as a core element and development and deployment of renewable energy technologies.

Program 7.1 components contribute to achieving the objectives by:

providing incentives to encourage the transition towards low emissions and

energy efficient technologies, processes and products through the

implementation of the ERF;

encouraging investment in renewable electricity generation through the

Renewable Energy Target;

providing incentives to reduce emissions in the land sector through the

implementation of the Carbon Farming Initiative (CFI) and associated

programmes through the Direct Action Plan; and

providing opportunities for businesses to measure and assess their carbon

footprint through the Carbon Neutral Programme.

Program 7.1 Expenses: Reducing Australia’s Greenhouse Gas Emissions 2012-13 2013-14 2014-15 2015-16 2016-17



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


Extending the benefits of the Carbon

Farming initiative - 3,025 909 475 428

Carbon Farming Skills - 73 250 - -


Departmental Programme Support 1 - 22,724 27,674 25,862 24,678


in the Budget year:

Depreciation and amortisation - 1,085 2,157 1,806 680

Total programme expenses - 26,907 30,990 28,143 25,786



70


Develop and consult with the community through both the Green and White

papers on the detailed design of the ERF.

Finalisation of legislative amendments to implement the ERF, CFI and repeal the

carbon tax legislation.

Development of methodologies under the ERF, including legislative components.

Contribution to the Government’s 2014 review of the Renewable Energy Target.

Development of methodologies to include the CFI under the Direct Action Plan.

Provision of advice to the Department of Foreign Affairs and Trade in support of

international negotiations in relation to the land sector and international

accounting rules.


Timely legislative amendments to amend the CFI and repeal the carbon tax

legislation.

Timely development and delivery of new methodologies under the CFI and ERF.

Effective contribution to the 2014 review of the Renewable Energy Target.

The Methodology Development Program will expand opportunities under the

CFI by supporting the development of estimation methodologies for new

abatement activities.

The Indigenous Carbon Farming Fund is supporting Indigenous participation in

the CFI through the development of methodologies and tools that will enable

crediting of abatement activities likely to have high Indigenous participation.


71

Program 7.2 Objective: Adapting to Climate Change

The Objective of Program 7.2 is to build Australia’s capacity to manage climate risk through well-coordinated science and research and through policy support for effective adaptation action.

Components of Program 7.2 contribute to achieving the Objective through:

improving our understanding of the global climate system and how it influences

Australia’s climate through the Australian Climate Change Science Programme;

supporting research to help Natural Resource Management groups incorporate

climate impacts and adaptation options into regional plans; and

provision of policy advice, and coordination with Commonwealth agencies and

States and Territories in relation to development and provision of practical

guidance and information on adapting to a changing climate.

Program 7.2 Expenses: Adapting to Climate Change 2012-13 2013-14 2014-15 2015-16 2016-17



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


Climate Change Science Program - 6,116 7,800 7,800 7,800

Clean Energy Future - Natural resource

management for climate change - 5,561 1,250 1,226 -


Departmental Programme Support 1 - 4,398 5,447 5,091 4,858


in the Budget year:

Depreciation and amortisation - 214 425 355 134

Total programme expenses - 16,289 14,922 14,472 12,792



Coordinate national climate science research to ensure priority science activities

are delivered in an effective and streamlined manner.

Support for effective collaboration between climate scientists and Natural

Resource Management groups to deliver targeted information on climate impacts

and adaptation for regional planning.

Provision of policy advice on climate adaptation.

Provision and coordination of well-targeted advice and practical guidance to

decision makers on climate adaptation.


72


Timely, high quality, robust, evidence-based advice that meets ministerial

expectations and informs Government decisions.

Well-targeted information on climate projections that meet the needs of

government, business and communities.

Effective administration of the Natural Resource Management Planning for

Climate Change Fund (Stream 2) with timely delivery of information on climate

change impacts and adaptation.


73

Section 3: Explanatory Tables and Budgeted Financial Statements

3.1 EXPLANATORY TABLES

Estimates of Special Account Flows

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

purposes. Table 3.1.1 shows the expected additions (receipts) and reductions

(payments) for each account used by the Department. The corresponding table in the

2013-14 PB Statements is Table 3.1.2.


74

Table 3.1.1: Estimates of Special Account Flows and Balances

Opening Closing

balance Receipts Payments Adjustments balance

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

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

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

Natural Heritage Trust of 1 386,598 309,383 (274,894) - 421,087

Australia Account (A) 1 385,868 162,814 (162,084) - 386,598

Ozone Protection and SGG 2 20,213 10,201 (11,933) - 18,481

Account (A) 2 22,984 9,631 (12,402) - 20,213

Services for Other Entities and 4 1,034 510 (510) - 1,034

Trust Moneys Special Account (A) 3 1,480 390 (836) - 1,034

Water Eff iciency Labelling and 4 2,340 1,910 (1,913) - 2,337

Standards Account (A) 4 4,493 816 (2,969) - 2,340

Water for the Environment 4 - - - - -

Special Account (A) 5 - - - - -

Environmental Water Holdings 6 43,825 27,433 (29,391) - 41,867

Special Account (A) 6 36,133 24,700 (17,008) - 43,825

Total Special Accounts

2013-14 Budget estimate 454,010 349,437 (318,641) - 484,806


2012-13 actual 450,958 198,351 (195,299) - 454,010

(A) = Administered

1 Natural Heritage Trust of Australia Account - s21 FMA Act [Natural Heritage Trust of Australia

Act 1997].2 Ozone Protection and SGG Account - s21 FMA Act [Ozone Protection and Synthetic

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

4 Water Effic iency Labelling and Standards Account - s21 FMA Act [Water Effic iency Labelling

and Standards Act 2004].5 Water for the Environment Special Account - s21 FMA Act [Water Act 2007 ]. The account is credited with a

profiled special appropriation with annual amounts for a specified number of years, commencing in 1 July 2014.6 Environmental Water Holdings Special Account - s21 FMA Act [Water Act 2007 ].


75

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of Budgeted Financial Statements

Changes to departmental and administered budgeted financial statements since the

2013-14 Portfolio Budget Statements include the actual financial results for 2012-13, the

Administrative Arrangement Order (AAO) dated 18 September 2013, new measures,

revised estimates of revenue and indexation updates.

3.2.2 Budgeted Financial Statements

Departmental Financial Statements

Comprehensive Income Statement

The changes in Departmental expense, income and revenue estimates are primarily

attributable to the:

the transfer of funding to the Department as a result of the AAO dated 18

September 2013, and outlined in table 1.4;

new measures announced since budget, which encompass both expense and

savings measures as outlined in tables 1.2 and 1.3; and

income from independent sources, (including associated expenses) being revised.

Balance Sheet

The budgeted departmental balance sheet has been updated for the impact of:

the 2012-13 actuals which changed the opening balances for 2013-14; and

the transfer of asset and liability balances as a result of the AAO dated 18

September 2013.


76

Administered

Schedule of budgeted income and expenses

Changes to income administered on behalf of the Government include:

a reduction to Synthetic Greenhouse Gases Equivalent Carbon Price programme,

which is accounted for as Taxation revenue; and

gains from water entitlement assets received free of charge in accordance with

the terms and conditions of the National Partnership on Water for the Future.

The reduction in taxation revenue is attributable to both a measure in table 1.3 and an

estimates variation to align with revised revenue forecasts.

The revised schedule for Administered expenses reflects:

the transfer of funding to the Department as a result of the AAO dated 18

September 2013, and outlined in table 1.4; and

the new measures which encompass both expense and savings measures as

outlined in tables 1.2 and 1.3.

Schedule of budgeted assets and liabilities

The overall change to the budgeted administered balance sheet primarily reflects the

update of the 2012-13 actuals which resulted in changed opening balances for 2013-14.

The taxation receivable has also been adjusted for the reduction to revenue raised from

the Synthetic Greenhouse Gases Equivalent Carbon Price programme.

.


77



Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)

for the period ended 30 June


budget estimate estimate estimate

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

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

EXPENSES

Employee benefits 267,153 277,115 260,836 248,669 238,640

Suppliers 213,719 228,793 165,733 161,166 143,813

Grants 6,480 6,442 7,046 7,326 6,513

Transfer funding 40,170 41,497 41,072 40,678 40,351


Finance costs 13,196 15,880 15,880 15,880 -

Write-dow n and impairment of assets 105 - - - -

Other 2,378 397 396 396 396

Total expenses 589,636 618,058 540,709 517,717 471,348

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of

services

102,494 90,597 52,525 51,440 49,847

Other 3,917 3,100 940 2,164 1,646

Total own-source revenue 106,411 93,697 53,465 53,604 51,493

Gains

Sale of assets 220 - - - -

Other 4,150 694 694 694 693

Total gains 4,370 694 694 694 693

Total own-source income 110,781 94,391 54,159 54,298 52,186

Net cost of (contribution by)

services 478,855 523,667 486,550 463,419 419,162

Revenue from Government 434,905 459,853 420,924 403,937 377,527

Surplus (Deficit) attributable to

the Australian Government (43,950) (63,814) (65,626) (59,482) (41,635)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation reserves 29,393 - - - -

Total other comprehensive income 29,393 - - - -

Total comprehensive income (loss) (14,557) (63,814) (65,626) (59,482) (41,635)

Total comprehensive income (loss)

attributable to the Australian

Government (14,557) (63,814) (65,626) (59,482) (41,635)


78


Note: Impact of Net Cash Appropriation Arrangements

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

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

Total Comprehensive Income

(loss) less depreciation/amortisation

expenses previously funded through

revenue appropriations 31,878 (15,880) (15,880) (15,880) -

plus depreciation/amortisation expenses

previously funded through revenue

appropriations 1 46,435 47,934 49,746 43,602 41,635


(loss) - as per the Statement of

Comprehensive Income (14,557) (63,814) (65,626) (59,482) (41,635)

Prepared on Australian Accounting Standards basis.

1 From 2010- 11, the Government introduced net cash appropriation arrangements where

Appropriation Act No.1 or Bill No. 3 revenue appropriations for the depreciation/amortisation

expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental

Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity

appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital

Budget Statement.


79

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Actual Revised Forw ard Forw ard Forw ard


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

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

ASSETS

Financial assets

Cash and equivalents 2,992 5,651 5,651 5,651 5,651

Trade and other receivables 96,168 127,677 127,677 127,677 127,677

Accrued revenue 4,738 4,738 4,738 4,738 4,738

Total financial assets 103,898 138,066 138,066 138,066 138,066

Non-financial assets

Land and buildings 254,343 243,029 231,242 220,631 210,099

Property, plant and equipment 103,489 103,282 92,173 84,060 76,266

Intangibles 26,674 37,081 38,317 39,300 42,087

Inventories 8,078 8,078 8,078 8,078 8,078

Other non - f inancial assets 1,921 1,921 1,921 1,921 1,921

Total non-financial assets 394,505 393,391 371,731 353,990 338,451

Total assets 498,403 531,457 509,797 492,056 476,517

LIABILITIES

Payables

Suppliers 22,266 22,266 22,266 22,266 22,266

Grants 154 154 154 154 154

Other payables 32,891 13,143 13,143 13,143 13,143

Total payables 55,311 35,563 35,563 35,563 35,563

Interest bearing liabilities

Leases 2,623 2,623 2,623 2,623 2,623

Total interest bearing liabilities 2,623 2,623 2,623 2,623 2,623

Provisions

Employee provisions 65,591 90,574 90,574 90,574 90,574

Antarctic make good provisions 1 400,220 416,023 431,903 447,783 447,783

Other provisions 6,149 6,106 6,106 6,106 6,106

Total provisions 471,960 512,703 528,583 544,463 544,463

Total liabilities 529,894 550,889 566,769 582,649 582,649

Net assets/(liabilities) 1 (31,491) (19,432) (56,972) (90,593) (106,132)


80

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)



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

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

EQUITY

Parent entity interest

Contributed equity 49,659 118,451 146,537 172,398 198,494

Reserves 302,223 302,223 302,223 302,223 302,223

Retained surplus

(accumulated deficit) (383,373) (440,106) (505,732) (565,214) (606,849)

Total parent entity interest (31,491) (19,432) (56,972) (90,593) (106,132)

Total equity (31,491) (19,432) (56,972) (90,593) (106,132)


1 The Department has a "make good" obligation for: the removal and site restoration of buildings

and infrastructure located in Antarctica and on sub- Antarctic Macquarie Island; and remediation

of past waste disposal sites and areas of ground contamination in Antarctica for which Australia

is responsible. These make good provisions are calculated using a net present value methodology.

This requires that each year the provision increases by the value of unwinding a discount on

the future value of the provisions. This increase results in liabilities that are not covered by assets

for the Department. Funding will not be provided to the Department until such time as

payments are required to be made, which is beyond the forward estimates.


81

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2013-14)

Retained Asset Contributed Total

earnings revaluation equity/ equity

reserve capital

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

Opening balance as at 1 July 2013

Balance carried forw ard from

previous period (383,373) 302,223 49,659 (31,491)

Adjustment for changes in

accounting policies 7,081 - (7,081) -

Adjusted opening balance (376,292) 302,223 42,578 (31,491)

Comprehensive income

Surplus (deficit) for the period (63,814) - - (63,814)

Total comprehensive income (63,814) - - (63,814)

of w hich:

Attributable to the Australian Government (63,814) - - (63,814)

Attributable to non-controlling interest

Transactions with owners

Distributions to owners

Returns on capital:

Returns of capital:

Restructuring - - 8,396 8,396

Contributions by owners

Contribution/ distribution of equity - - 38,075 38,075

Equity Injection - Appropriation - - 2,852 2,852

Departmental Capital Budget (DCB) - - 26,550 26,550

Sub-total transactions with owners - - 75,873 75,873

Estimated closing balance

as at 30 June 2014 (440,106) 302,223 118,451 (19,432)

Less: non-controlling interests

Closing balance attributable to the

Australian Government (440,106) 302,223 118,451 (19,432)



82

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



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

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

OPERATING ACTIVITIES

Cash received

Sale of goods and rendering of services 101,208 90,597 52,525 51,440 49,847

Appropriations 519,722 424,499 420,924 403,937 377,527

Net GST received 15,251 - - - -

Other 2,173 3,745 940 2,164 1,646

Total cash received 638,354 518,841 474,389 457,541 429,020

Cash used

Employees 264,511 277,177 260,836 248,669 238,640

Suppliers 226,576 228,744 165,039 160,472 143,120

Grants 7,253 6,442 7,046 7,326 6,513

Transfer funding 40,170 41,497 41,072 40,678 40,351

Section 31 receipts transferred to OPA 100,220 - - - -

Other 2,268 397 396 396 396

Total cash used 640,998 554,257 474,389 457,541 429,020

Net cash from (used by)

operating activities (2,644) (35,416) - - -

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property,

plant and equipment 255 - - - -

Total cash received 255 - - - -

Cash used

Purchase of property, plant and

equipment and intangibles 25,620 29,402 28,086 25,861 26,096

Total cash used 25,620 29,402 28,086 25,861 26,096


investing activities (25,365) (29,402) (28,086) (25,861) (26,096)


83

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



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

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

FINANCING ACTIVITIES

Cash received


Finance leases - - - - -


Cash used

Total cash used - - - - -


financing activities 25,533 67,477 28,086 25,861 26,096

Net increase (decrease)

in cash held (2,476) 2,659 - - -

Cash and cash equivalents at the

beginning of the reporting period 5,468 2,992 5,651 5,651 5,651


end of the reporting period 2,992 5,651 5,651 5,651 5,651



84

Table 3.2.5: Departmental Capital Budget Statement Actual Revised Forw ard Forw ard Forw ard


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

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

NEW CAPITAL APPROPRIATIONS

Capital budget - Act No. 1 (DCB) 23,479 26,550 25,341 25,216 25,151

Equity injections - Act No. 2 1,872 40,608 2,745 645 945

Total new capital appropriations 25,351 67,158 28,086 25,861 26,096

Provided for:

Purchase of non-financial assets 25,351 29,083 28,086 25,861 26,096

Other Items 1 - 38,075 - - -

Total Items 25,351 67,158 28,086 25,861 26,096

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriations 2 1,872 2,852 2,745 645 945

Funded by capital appropriation - DCB 3 23,479 26,550 25,341 25,216 25,151

TOTAL 25,351 29,402 28,086 25,861 26,096

RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLE

Total purchases 25,351 29,402 28,086 25,861 26,096

Total cash used to

acquire assets 25,351 29,402 28,086 25,861 26,096


Consistent w ith information contained in the Statement of Asset Movements and the Budgeted

Statement of Cash Flow s.1 Includes $38.075m for Domestic Climate Change functions transferred from Department of

Industry as a result of AAO changes announced on 18 September 2013.2 Includes both current and prior year Appropriation Act No 2 and Bill No. 4.

3 Does not include annual finance lease costs. Includes purchases funded by current and previous

years' Departmental Capital Budgets.

85

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Table 3.2.6: Statement of Asset Movements (2013-14)

Buildings Other property, Computer Total

plant and software and

equipment intangibles

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

As at 1 July 2013

Gross book value 307,021 150,533 52,584 510,138

Accumulated depreciation/amortisation

and impairment (52,678) (47,044) (25,910) (125,632)

Opening net book balance 254,343 103,489 26,674 384,506

CAPITAL ASSET ADDITIONS

Estimated expenditure on

new or replacement assets

By purchase - appropriation equity 1 - - 2,852 2,852

By purchase - appropriation ordinary

annual services 2 8,020 12,648 5,882 26,550

From acquisition of entities or operations

(including restructuring) - 9,499 14,188 23,687

Total additions 8,020 22,147 22,922 53,089

Other movements

Depreciation/amortisation expense (19,334) (21,999) (6,601) (47,934)

Depreciation/amortisation expense -

restructuring - (355) (5,914) (6,269)

Total other movements (19,334) (22,354) (12,515) (54,203)

As at 30 June 2014

Gross book value 315,041 172,680 75,506 563,227


and impairment (72,012) (69,398) (38,425) (179,835)

Closing net book balance 243,029 103,282 37,081 383,392


1 "Appropriation equity" refers to equity injections provided through Appropriation Act No.2 and Bill No. 4 2013- 14 .

2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Act No.1 and Bill No. 3 2013- 14 for DCBs.

Agency Additional Estimates Statement — Department of the Environment

86

Schedule of Administered Activity

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



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

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

EXPENSES ADMINISTERED ON

BEHALF OF GOVERNMENT

Suppliers 106,226 57,155 53,897 58,857 54,971

Subsidies - - - - -

Grants 516,348 794,808 883,960 1,246,551 1,114,331

Depreciation and amortisation 425 - - - -

Write-dow n and impairment

of assets 344,332 - - - -

Other 868 1,192 - - -

Total expenses administered

on behalf of Government 968,199 853,155 937,857 1,305,408 1,169,302

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other 101,810 99,099 122 145 1,498

Total taxation revenue 101,810 99,099 122 145 1,498

Non-taxation revenue

Sale of goods and rendering

of services 572 1,530 1,530 1,530 1,530

Fees and fines 8,268 9,324 24,183 28,718 20,978

Interest 693 525 285 97 38

Grant repayments - - - - -

Other 2,589 3,178 2,228 2,228 15,465

Total non-taxation revenue 12,122 14,557 28,226 32,573 38,011

Total own-source revenues

administered on behalf of

Government 113,932 113,656 28,348 32,718 39,509


87




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

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

Gains

Reversal of previous asset

w rite-dow ns and impairments 112 - - - -

Other 47,722 118,474 142,376 149,836 170,450

Total gains administered

on behalf of Government 47,834 118,474 142,376 149,836 170,450

Total own-sourced income


Government 161,766 232,130 170,724 182,554 209,959

Net Cost of (contribution by)

services 806,433 621,025 767,133 1,122,854 959,343

Surplus (Deficit) (806,433) (621,025) (767,133) (1,122,854) (959,343)


Changes in asset revaluation surplus (6,009) - - - -

T o tal o ther co mprehensive inco me (6,009) - - - -

T o tal co mprehensive inco me ( lo ss) (812,442) (621,025) (767,133) (1,122,854) (959,343)



88

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



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

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

ASSETS ADMINISTERED ON


Financial assets

Cash and cash equivalents - - - - -

Receivables 13,551 11,216 8,906 8,120 5,785

Taxation receivables 22,806 35,000 - - -

Other investments 561,520 562,045 562,045 562,045 562,045



Land and buildings 1,467 1,467 1,467 1,467 1,467

Property, plant and equipment 506,448 506,448 506,448 506,448 506,448

Inventories 12,559 12,559 12,559 12,559 12,559

Intangibles 1,874,779 2,065,775 2,279,575 2,495,017 2,750,629

Total non-financial assets 2,395,253 2,586,249 2,800,049 3,015,491 3,271,103

Total assets administered

on behalf of Government 2,993,130 3,194,510 3,371,000 3,585,656 3,838,933

LIABILITIES ADMINISTERED ON


Payables

Suppliers 7,103 7,103 7,103 7,103 7,103

Grants 23,058 23,058 23,058 23,058 23,058

Other 63 63 63 63 63

Total payables 30,224 30,224 30,224 30,224 30,224

Total liabilities administered


Net assets/(liabilities) 2,962,906 3,164,286 3,340,776 3,555,432 3,808,709



89

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



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

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


Cash received

Sales of goods and rendering

of services 650 1,530 1,530 1,530 1,530

Fees and fines 8,263 9,324 24,183 28,718 20,978

Interest 741 525 285 97 38

Taxes 79,004 86,905 35,122 145 1,498


Other 2,045 3,178 2,228 2,228 15,465


Cash used

Suppliers 110,506 41,549 55,397 55,357 58,571

Grant payments 683,409 794,808 883,960 1,246,551 1,114,331

Other 882 1,192 - - -

Total cash used 794,797 837,549 939,357 1,301,908 1,172,902


operating activities (653,351) (736,087) (876,009) (1,269,190) (1,133,393)


90




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

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

INVESTING ACTIVITIES

Cash received

Repayments of advances

and loans 2,118 2,335 2,310 786 340

Total cash received 2,118 2,335 2,310 786 340

Cash used

Purchase of property, plant,


Total cash used 121,242 72,522 71,424 65,606 85,162



Net increase (decrease) in

cash held (772,475) (806,274) (945,123) (1,334,010) (1,218,215)

Cash and cash equivalents at

beginning of reporting period - - - - -

Cash from Official Public Account for:

- Appropriations 711,008 606,934 671,311 956,556 803,082

- Special Accounts 205,221 302,517 326,666 397,100 443,356

916,229 909,451 997,977 1,353,656 1,246,438

Cash to Official Public Account for:

- Appropriations 119,987 100,242 52,854 19,646 28,223

- Special Accounts 23,767 2,935 - - -

143,754 103,177 52,854 19,646 28,223


end of reporting period - - - - -



91

Table 3.2.10: Schedule of Administered Capital Budget Statement



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

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


Administered Assets and

Liabilities - Act 2 159,620 6,349 320,599 - 269,574

Total new capital appropriations 159,620 6,349 320,599 - 269,574

Provided for:

Purchase of non-financial assets 159,620 6,261 320,599 - 269,574

Other Items - 88 - - -

Total Items 159,620 6,349 320,599 - 269,574


ASSETS

Funded by capital appropriations 1 119,120 72,522 71,424 65,606 85,162

TOTAL AMOUNT SPENT 119,120 72,522 71,424 65,606 85,162




Total accrual purchases 119,120 72,522 71,424 65,606 85,162

Total cash used to

acquire assets 119,120 72,522 71,424 65,606 85,162



Statement of Cash Flow s.1 Includes funding from both current and prior appropriations.

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Table 3.2.11: Statement of Administered Asset Movements (2013-14)

Land Other property, Intangibles Total

plant and

equipment

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

As at 1 July 2013

Gross book value 1,467 506,448 1,874,779 2,382,694


and impairment - - - -

Opening net book balance 1,467 506,448 1,874,779 2,382,694


Estimated expenditure on new or

replacement assets

By purchase - appropriation equity 1 - - 72,522 72,522


Other 2 - - 118,474 118,474

Total additions - - 190,996 190,996

As at 30 June 2014

Gross book value 1,467 506,448 2,065,775 2,573,690


and impairment - - - -

Closing net book balance 1,467 506,448 2,065,775 2,573,690


1 "Appropriation equity" refers to Administered Assets and Liabilities appropriations provided through Appropriation Act No.2

and Bill No.4 2013- 14.2 Transfer of water entitlements from the Sustainable Rural Water Use and Infrastructure Programme.

93

CLEAN ENERGY REGULATOR

Section 1: Agency Overview and Resources ........................................................... 95

1.1 Strategic Direction .................................................................................................. 95

1.2 Agency Resource Statement ................................................................................. 95

1.3 Agency Measures Table ........................................................................................ 97

1.4 Additional Estimates and Variations ...................................................................... 99

1.5 Breakdown of Additional Estimates by Appropriation Bill .................................... 100

Section 2: Revisions to Agency Outcomes and Planned Performance .............. 101

2.1 Resources and Performance Information ............................................................ 101

Section 3: Explanatory Tables and Budgeted Financial Statements ................... 103

3.1 Explanatory Tables .............................................................................................. 103

3.2 Budgeted Financial Statements ........................................................................... 104

Agency Additional Estimates Statements — Clean Energy Regulator

94


95

CLEAN ENERGY REGULATOR

Section 1: Agency Overview and Resources

1.1 STRATEGIC DIRECTION

Details of the Clean Energy Regulator’s strategic direction and program structures are

contained in the 2013-14 Industry, Innovation, Climate Change, Science, Research and

Tertiary Education 2013-14 Portfolio Budget Statements.

The adjustment to the Clean Energy Regulator’s revenue and expenses, in the forward

years, reflects the Government’s commitment to repeal the carbon pricing mechanism.

The additional appropriation of $14.4 million over three years was provided to fund

the previous Government’s commitment to the early delivery of the flexible price

period and included accelerating delivery of other core capability.

The Clean Energy Regulator’s appropriation is reduced by $10.2 million over the

Budget and forward years through Government savings measures, parameter

adjustments and efficiency dividends.

1.2 AGENCY RESOURCE STATEMENT

The Agency Resource Statement details the resourcing for the Clean Energy Regulator

at Additional Estimates. Table 1.1 outlines the total resourcing available from all

sources for the 2013-14 Budget year, including variations through Appropriation Bill

Nos. 3 and 4, Special Appropriations and Special Accounts.


96

Table 1.1: Clean Energy Regulator Resource Statement Budget Estimates for 2013-14 as at Additional Estimates February 2014

Estimate as Proposed Total Total

at Budget+

Additional=

estimate available

Estimate at Additional appropriation

Estimates

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

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

Ordina ry a nnua l se rvic e s1

De pa rtme nta l a ppropria tion

Prior year departmental appropriation2

13,792 - 13,792 -

Departmental appropriation3

80,257 3,118 83,375 80,822

s31 Relevant agency receipts4

- 345 345 2,936

Tota l 9 4 ,0 4 9 3 ,4 6 3 9 7 ,5 12 8 3 ,7 5 8

Administe re d e xpe nse s

Outcome 1 3,745 - 3,745 3,862

Tota l 3 ,7 4 5 - 3 ,7 4 5 3 ,8 6 2

Tota l ordina ry a nnua l se rvic e s A 9 7 ,7 9 4 3 ,4 6 3 10 1,2 5 7 8 7 ,6 2 0

Othe r se rvic e s5

De pa rtme nta l non- ope ra ting

Equity injections 7,289 5,264 12,553 17,757

Tota l 7 ,2 8 9 5 ,2 6 4 12 ,5 5 3 17 ,7 5 7

Tota l othe r se rvic e s B 7 ,2 8 9 5 ,2 6 4 12 ,5 5 3 17 ,7 5 7

Tota l a va ila ble a nnua l

a ppropria tions 10 5 ,0 8 3 8 ,7 2 7 113 ,8 10 10 5 ,3 7 7

Spe c ia l a ppropria tions

Spe c ia l a ppropria tions limite d

by c rite ria /e ntitle me nt

Clean Energy Act 20116

1,262,671 2,203,808 3,466,479 704,029

Renewable Energy (Electricity) Act 2000 1,605 - 1,605 -

Tota l spe c ia l a ppropria tions C 1,2 6 4 ,2 76 2 ,2 0 3 ,8 0 8 3 ,4 6 8 ,0 8 4 70 4 ,0 2 9

Tot al net resourcing f o r C ER ( A +B +C ) 1,3 6 9 ,3 59 2 ,2 12 ,53 5 3 ,58 1,8 9 4 8 0 9 ,4 0 6

1 Appropriation Act No. 1 2013- 14 and Appropriation Bill No. 3 2013- 14.

2 Estimated adjusted balance carried from previous year for annual appropriations.

3 Includes an amount of $2.022m in 2013- 14 for the Departmental Capital Budget (refer to table 3.2.5 for

further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 Relevant Agency receipts - estimate.

5 Appropriation Act No. 2 2013- 14 and Appropriation Bill No. 4 2013- 14.

6 Estimates have been developed in consultation with Treasury.

Reader note: All figures are GST exclusive.


97

1.3 AGENCY MEASURES TABLE

Table 1.2 summarises new Government measures taken since the 2013-14 Budget. The

table is split into revenue, expense and capital measures, with the affected program

identified.


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

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

Revenue measures

Carbon pricing mechanism - replacing


scheme from 1 July 20141 1.1

Administered revenues - (6,970,000) - -

Total - (6,970,000) - -

Repeal of the carbon tax - forgone

revenue from the repeal of the carbon 1.1

Administered revenues - (2,020,000) (4,230,001) (6,220,000)

Total - (2,020,000) (4,230,001) (6,220,000)

Total revenue measures

Administered - (8,990,000) (4,230,001) (6,220,000)

Total - (8,990,000) (4,230,001) (6,220,000)

Expense measures

Carbon pricing mechanism - reforms

to energy security fund1 1.1

Administered expenses - 245,225 (512,972) (781,135)

Total - 245,225 (512,972) (781,135)




Administered expenses - (3,140,516) - -

Departmental expenses 3,694 2,754 688 -

Total 3,694 (3,137,762) 688 -

Repeal of the carbon tax - abolishing

business compensation1 1.1

Administered expenses - (679,230) (1,408,621) (2,192,376)

Total - (679,230) (1,408,621) (2,192,376)

Repeal of the carbon tax - abolishing

energy market compensation 1.1

Administered expenses - (513,806) - -

Total - (513,806) - -

Former Department of Climate Change

and Energy Efficiency - reduction in

funding 1.1

Departmental expenses (449) (847) (847) (847)

Total (449) (847) (847) (847)


98


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

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

Public Services eff iciencies2 1.1


Total (8) (39) (86) (119)

Reforms to the APS management and


softw are 1.1


Total (119) (150) (196) (118)


increase in the rate 1.1

Departmental expenses - (812) (1,775) (2,746)

Total - (812) (1,775) (2,746)

Total expense measures

Administered - (4,088,327) (1,921,593) (2,973,511)

Departmental 3,118 906 (2,216) (3,830)

Total 3,118 (4,087,421) (1,923,809) (2,977,341)

Capital measures




Departmental capital 5,264 2,027 - -

Total 5,264 2,027 - -

Total capital measures

Departmental 5,264 2,027 - -

Total 5,264 2,027 - -

Prepared on a Government Financial Statistics (f iscal) basis.1 Estimates have been developed in consultation w ith Treasury.

2 Public Services eff iciencies w ere announced in the 2013-14 Budget but have not been

previously reported in the Portfolio Statements


99

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Clean Energy

Regulator at Additional Estimates, by outcome. Table 1.3 details the Additional

Estimates and variations resulting from new measures since the 2013-14 Budget in

Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations

through other factors.


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

impacted $'000 $'000 $'000 $'000

Outcome 1


Carbon pricing mechanism -

replacing f ixed price w ith an

emissions trading scheme from 1

July 2014

1.1

Departmental expenses 3,694 2,754 688 -

Departmental capital 5,264 2,027 - -


Former Department of Climate

Change and Energy Efficiency -

reduction in funding

1.1


Public Services eff iciencies 1.1


Reforms to the APS management

and eff icient procurement of

agency softw are

1.1



increase in the rate1.1

Departmental expenses - (812) (1,775) (2,746)


for Outcome 1 (departmental) 8,382 2,933 (2,216) (3,830)


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

impacted $'000 $'000 $'000 $'000

Outcome 1


Parameter adjustments 1.1 - (230) (379) (456)


for Outcome 1 (departmental) - (230) (379) (456)


100

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION

BILL

The following tables detail the Additional Estimates sought for the Clean Energy

Regulator through Appropriation Bills Nos. 3 and 4.




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

DEPARTMENTAL PROGRAMS

Outcome 1

Contribute to a reduction in

Australia's net greenhouse gas

emissions, including through the

administration of a carbon price

on liable emissions intensive

businesses and other entities;

promoting additional renew able

electricity generation; and land-

based initiatives that support

carbon abatement.

80,822 80,257 83,375 3,118 -

Total departmental 80,822 80,257 83,375 3,118 -




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

Non-operating

Equity injections1 17,757 7,289 12,553 5,264 -

Total non-operating 17,757 7,289 12,553 5,264 -1 The equity injection available in 2012-13 includes an amount of $5.098m that is to be returned to

Government.


101

Section 2: Revisions to Agency Resources and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

Complete details of the Clean Energy Regulator’s resources and performance

information are contained in the 2013-14 Industry, Innovation, Climate Change,

Science, Research and Tertiary Education 2013-14 Portfolio Budget Statements.

OUTCOME 1

Outcome 1 Strategy

There has been no change to the Clean Energy Regulator’s outcome strategy since the

2013-14 Portfolio Budget Statements.

Table 2.1: Budgeted Expenses for Outcome 1

2012-13 2013-14

Actual Revised

expenses Estimated

expenses

$'000 $'000

Program 1.1: Clean Energy Regulator



Special appropriations1 704,029 3,468,084

Departmental expenses2

Departmental appropriation3 79,228 81,698

Expenses not requiring appropriation in the Budget year3 249,834 82,724

Total for Program 1.1 1,037,361 3,636,251




Special appropriations1 704,029 3,468,084

Departmental expenses2

Departmental appropriation3 79,228 81,698

Expenses not requiring appropriation in the Budget year4 249,834 82,724

Total expenses for Outcome 1 1,037,361 3,636,251

2012-13 2013-14

Average Staffing Level (number) 349 3441 Estimates have been developed in consultation w ith Treasury.2 Outcome 1 also has a departmental capital budget of $2.022 million in 2013-143 Departmental Appropriation combines "Ordinary annual services (Appropriation Act No. 1 and

Bill No. 3)" and "Revenue from independent sources (s31)".4 Expenses not requiring appropriation in the Budget year is made up of depreciation and

amortisation expense, make good expense, other gains, w rite-dow n of assets, liability for

buy-back of free permits and surrender of carbon credits.

Outcome 1: Contribute to a reduction in Australia's net greenhouse

gas emissions, including through the administration of a carbon

price on liable emissions intensive businesses and other entities;

promoting additional renew able electricity generation; and land-

based initiatives that support carbon abatement.


102


No changes have occurred to the program objectives since the 2013-14 Portfolio Budget

Statements.

Program 1.1 Expenses 2012-13 2013-14 2014-15 2015-16 2016-17



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


Administered item 4,270 3,745 3,817 3,817 3,817

Special Appropriations: `

Clean Energy Act 2011 1 704,029 3,466,479 - -

Renewable Energy (Electricity) Act 2000 - 1,605 2,588 2,947 2,617

Program support 79,228 81,698 77,166 74,310 73,525


the Budget year2 249,834 82,724 12,751 14,184 14,220

Total program expenses 1,037,361 3,636,251 96,322 95,258 94,1791 Estimates have been developed in consultation w ith Treasury.2 Expenses not requiring appropriation in the Budget year is made up of depreciation and

amortisation expense, make good expense, other gains, w rite-dow n of assets, liability for

buy-back of free permits and surrender of carbon credits.


No changes have occurred to the program deliverables since the 2013-14 Portfolio

Budget Statements.


No changes have occurred to the program key performance indicators since the

2013-14 Portfolio Budget Statements.


103

Section 3: Explanatory Tables and Budgeted Financial Statements

3.1 EXPLANATORY TABLES

Estimates of Special Account Flows

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

purposes. Table 3.1.1 shows the expected additions (receipts) and reductions

(payments) for each account used by the Clean Energy Regulator. The corresponding

table in the 2013-14 PB Statements is Table 3.1.2.

Table 3.1.1: Estimates of Special Account Flows and Balances

Opening Closing

balance Receipts Payments Adjustments balance

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

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

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

Renew able Energy Special

Account (Administered) 1 - 18,369 (18,369) - -


2013-14 Budget estimate - 18,369 (18,369) - -


2012-13 actual - - - - -


104

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of Budgeted Financial Statements

The Clean Energy Regulator is budgeting to incur expenses of $98.8 million in 2013-14.

The Clean Energy Regulator is budgeting for a break-even position in 2013-14

excluding non-appropriated expenses relating to depreciation and amortisation.




for the period ended 30 June



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

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

EXPENSES

Employee benefits 40,679 44,265 43,100 42,694 42,242

Suppliers 38,752 37,433 34,066 31,616 31,283


Finance costs 30 - - - -

Write-dow n and impairment of assets 2,524 - - - -

Losses from asset sales 123 - - - -

Total expenses 95,138 98,757 89,917 88,494 87,745

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 429 345 - - -

Total own-source revenue 429 345 - - -

Gains

Other gains 1,181 - - - -

Total gains 1,181 - - - -

Total own-source income 1,610 345 - - -

Net cost of (contribution by)

services 93,528 98,412 89,917 88,494 87,745

Revenue from Government 78,799 81,353 77,166 74,310 73,525

Surplus (Deficit) (14,729) (17,059) (12,751) (14,184) (14,220)


Items not subject to subsequent

reclassification to profit or loss

Changes in asset revaluation surplus 3,581 - - - -

Total other comprehensive income 3,581 - - - -

Total comprehensive income (loss) (11,148) (17,059) (12,751) (14,184) (14,220)


105


Note: Impact of Net Cash Appropriation Arrangements

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

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


(loss) excluding depreciation/

amortisation expenses

previously funded through

revenue appropriations 1,882 - - - -

less depreciation/amortisation expenses

previously funded through revenue

appropriations1 13,030 17,059 12,751 14,184 14,220


(loss) - as per the Statement of

Comprehensive Income (11,148) (17,059) (12,751) (14,184) (14,220)

Prepared on Australian Accounting Standards basis.1 From 2010-11, the Government introduced net cash appropriation arrangements w here

Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation

expenses of FMA Act agencies w ere replaced w ith a separate capital budget (the Departmental

Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity

appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital

Budget Statement.


106

Table 3.2.2: Departmental Balance Sheet (as at 30 June)



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

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

ASSETS

Financial assets

Cash and cash equivalents 297 297 297 297 297

Trade and other receivables 23,373 13,881 13,829 14,122 14,122

Other f inancial assets 162 88 98 110 110



Land and buildings 7,447 5,540 3,638 1,736 1

Property, plant and equipment 950 608 344 702 550

Intangibles 44,266 44,031 39,050 27,599 16,460

Other non-financial assets 373 356 356 354 354

Total non-financial assets 53,036 50,535 43,388 30,391 17,365

Total assets 76,868 64,801 57,612 44,920 31,894

LIABILITIES

Payables

Suppliers 11,167 9,820 9,278 9,081 9,081

Other payables 1,342 1,342 1,342 1,342 1,342

Total payables 12,509 11,162 10,620 10,423 10,423

Provisions

Employee provisions 9,431 9,931 10,431 10,931 10,931

Other provisions 1,407 1,407 1,407 1,407 1,407

Total provisions 10,838 11,338 11,838 12,338 12,338

Total liabilities 23,347 22,500 22,458 22,761 22,761

Net assets 53,521 42,301 35,154 22,159 9,133

EQUITY


Reserves 3,581 3,581 3,581 3,581 3,581

Retained surplus

(accumulated deficit) (16,058) (33,117) (45,868) (60,052) (74,272)

Total equity 53,521 42,301 35,154 22,159 9,133



107

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2013-14)

Retained Asset Contributed Total

earnings revaluation equity/ equity

reserve capital

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

Opening balance as at 1 July 2013

Balance carried forw ard from

previous period (16,058) 3,581 65,998 53,521

Adjusted opening balance (16,058) 3,581 65,998 53,521

Comprehensive income

Surplus (Deficit) for the period (17,059) - - (17,059)

Total comprehensive income (17,059) - - (17,059)

Transactions with owners

Distributions to owners

Returns of capital:

Distribution of equity - - (8,736) (8,736)

Contributions by owners

Equity Injection - Appropriation - - 12,553 12,553

Departmental Capital Budget (DCBs) - - 2,022 2,022

Sub-total transactions with owners - - 5,839 5,839

Estimated closing balance

as at 30 June 2014 (33,117) 3,581 71,837 42,301



108

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



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

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


Cash received

Appropriations 81,751 82,394 77,404 74,204 73,525

Sale of goods and rendering of services 96 345 - - -


Other 2,936 - - - -


Cash used

Employees 40,683 43,819 42,656 42,252 42,242

Suppliers 45,753 38,920 34,748 31,952 31,283

Section 31 receipts transferred to OPA 759 - - - -

Total cash used 87,195 82,739 77,404 74,204 73,525


operating activities 4,038 - - - -

Cash used

Purchase of property, plant,


Total cash used 38,788 14,575 5,604 1,189 1,194



FINANCING ACTIVITIES

Cash received



Net cash used by

financing activities 34,756 14,575 5,604 1,189 1,194

Net increase (decrease)

in cash held 6 - - - -


beginning of the reporting period 291 297 297 297 297


end of the reporting period 297 297 297 297 297



109

Table 3.2.5: Departmental Capital Budget Statement Actual Revised Forw ard Forw ard Forw ard


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

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


Capital budget - Act No. 1 (DCB) 2,023 2,022 1,198 1,189 1,194

Equity injections - Act No. 2 12,659 12,553 4,406 - -

Total new capital appropriations 14,682 14,575 5,604 1,189 1,194

Provided for:

Purchase of non-financial assets 14,682 14,575 5,604 1,189 1,194

Total Items 14,682 14,575 5,604 1,189 1,194


ASSETS

Funded by capital appropriations128,671 12,553 4,406 - -

Funded by capital appropriation - DCB22,023 2,022 1,198 1,189 1,194

Funded internally from

departmental resources3731 - - - -

TOTAL AMOUNT SPENT 31,425 14,575 5,604 1,189 1,194




Total purchases 38,788 14,575 5,604 1,189 1,194

Total cash used to

acquire assets 38,788 14,575 5,604 1,189 1,194


Statement of Cash Flow s.1 Includes both current and prior Act No. 2 and Bill No. 4 appropriations.2 Does not include annual f inance lease costs. Includes purchases from current and previous

years' Departmental Capital Budgets (DCBs).3 Includes additions by donations/gifts.


110

Table 3.2.6: Statement of Asset Movements (2013-14) Buildings Other property, Computer Total

plant and softw are and

equipment intangibles

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

As at 1 July 2013

Gross book value 7,612 950 59,598 68,160


and impairment (165) - (15,332) (15,497)

Opening net book balance 7,447 950 44,266 52,663-


Estimated expenditure on

new or replacement assets

By purchase - appropriation equity1 - - 12,553 12,553


annual services2 - - 2,022 2,022

Total additions - - 14,575 14,575

Other movements

Depreciation/amortisation expense (1,907) (342) (14,810) (17,059)

Total other movements (1,907) (342) (14,810) (17,059)

As at 30 June 2014

Gross book value 7,612 950 74,173 82,735


and impairment (2,072) (342) (30,142) (32,556)

Closing net book balance 5,540 608 44,031 50,179


1 "Appropriation equity" refers to equity injections provided through Appropriation Act No. 2 and

Bill No. 4 2013-14.2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Act

No. 1 and Bill No. 3 2013-14 for depreciation / amortisation expenses, DCBs or other operational

expenses.


111

Schedule of Administered Activity




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

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

EXPENSES ADMINISTERED ON


Suppliers 4,270 5,350 6,405 6,764 6,434

Write-down and impairment o f assets 209 - - - -

Total expenses administered


LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Carbon price permits1 5,047,404 7,340,000 - - -

Value of free permits and carbon credits1 (937,744) (3,532,144) - - -

Other taxes 825 6,088 5,816 5,322 5,631

Total taxation revenue 4,110,485 3,813,944 5,816 5,322 5,631

Non-taxation revenue

Fees and fines 19,383 12,332 10,925 10,680 11,142

Total non-taxation revenue 19,383 12,332 10,925 10,680 11,142

Total own-source revenues


Government 4,129,868 3,826,276 16,741 16,002 16,773

Gains

Fair value gains carbon price1 - 156,732 - - -

Total gains administered

on behalf of Government - 156,732 - - -

Total own-sourced income


Government 4,129,868 3,983,008 16,741 16,002 16,773

Net Cost of (contribution by)

services (4,125,389) (3,977,658) (10,336) (9,238) (10,339)

Surplus (Deficit) 4,125,389 3,977,658 10,336 9,238 10,339

T o tal co mprehensive inco me ( lo ss) 4,125,389 3,977,658 10,336 9,238 10,339

Prepared on Australian Accounting Standards basis.1 Estimates have been developed in consultation w ith Treasury.


112

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



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

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

ASSETS ADMINISTERED ON


Financial assets

Cash and cash equivalents 1,305 1,305 1,305 1,305 1,305

Carbon price revenue receivable1 1,417,729 1,695,000 - - -

Trade and other receivables 81 81 81 81 81

Total financial assets 1,419,115 1,696,386 1,386 1,386 1,386

Total assets administered

on behalf of Government 1,419,115 1,696,386 1,386 1,386 1,386

LIABILITIES ADMINISTERED ON


Payables

Suppliers 3,667 3,667 3,667 3,667 3,667

Subsidies1 231,151 332,896 - - -

Total payables 234,818 336,563 3,667 3,667 3,667

Provisions

Other provisions 262 262 262 262 262

Total provisions 262 262 262 262 262

Total liabilities administered


Net assets/(liabilities) 1,184,035 1,359,561 (2,543) (2,543) (2,543)



113




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

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


Cash received

Carbon price and other receipts1 3,631,103 7,186,088 1,700,816 5,322 5,631

Fees and fines 19,174 12,332 10,925 10,680 11,142

Net GST received 406 - - - -

Total cash received 3,650,683 7,198,420 1,711,741 16,002 16,773

Cash used

Subsidies paid1 704,029 3,466,479 332,896 - -

Suppliers 5,826 5,350 6,405 6,764 6,434

Total cash used 709,855 3,471,829 339,301 6,764 6,434

Net cash used by

operating activities 2,940,828 3,726,591 1,372,440 9,238 10,339

Net increase (decrease) in

cash held 2,940,828 3,726,591 1,372,440 9,238 10,339


beginning of reporting period 2,101 1,305 1,305 1,305 1,305

Cash from Official Public Account for:

- Appropriations 710,188 3,471,829 339,301 6,764 6,434

710,188 3,471,829 339,301 6,764 6,434

Cash to Official Public Account for:

- Appropriations (3,651,812) (7,198,420) (1,711,741) (16,002) (16,773)

(3,651,812) (7,198,420) (1,711,741) (16,002) (16,773)

Cash and cash equivalents at end

of reporting period 1,305 1,305 1,305 1,305 1,305



114

Notes to the Financial Statements

The statements have been prepared in accordance with:

Finance Minister’s Orders (FMOs), being the Financial Management and

Accountability Orders;

Australian Equivalents of International Financial Reporting Standards (AEIFRS)

issued by the Australian Accounting Standards Board (AASB) that apply for the

reporting period; and

interpretations issued by the AASB and Urgent Issues Group (UIG) that apply

for the reporting period.

The statements have been prepared on an accrual basis and are in accordance with

historical cost principles except for certain assets, which, as noted, are at valuation.

Departmental

Income

Income includes the following items:

Revenues from Government—amounts appropriated to the Agency.

Goods and Services—revenue is recognised upon the delivery of goods and

services to customers.

Expenses

All expenses are recognised on an accrual basis, as and when these can be reliably

estimated.

Assets

Land, buildings, plant and equipment are carried at their fair value.

Non-current assets are reviewed at balance date for internal and external indications of

impairment. Where indications of impairment are identified for an asset, its

recoverable amount is determined and where lower than its carrying amount, written

down to that amount.

The Department’s intangible assets comprise the acquisition of software configured for

internal use and internally developed software. These assets are carried at cost less

accumulated amortisation and accumulated impairment losses.


115

Liabilities

Liabilities for services rendered by employees are recognised at the reporting date to

the extent that they have not been settled. The liability for employee benefits includes

provision for annual leave and long service leave.

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination

benefits due within twelve months of balance date 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. All other employee benefit liabilities are measured

as the present value of the estimated future cash outflows to be made in respect of

services provided by employees up to the reporting date.

Trade creditors and accruals are recognised at their nominal amounts, being the

amounts at which the liabilities will be settled which represent their fair value.

Liabilities are recognised to the extent that the goods or services have been received

(and irrespective of having been invoiced).

Administered

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.

Documents

Portfolio Additional Estimates Statements 2013-14 · portfolio additional estimates statements 2013-14 environment portfolio explanations of additional estimates 2013-14