Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Estimates—Portfolio additional estimates statements—Portfolios and executive departments—Environment portfolio—2015-16


Download PDF Download PDF

Portfolio Additional Estimates Statements 2015-16

Environment Portfolio

Explanations of Additional Estimates 2015-16

© Commonwealth of Australia 2016

ISBN 978-1-921069-00-0

This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the Department of the Environment logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from

http://creativecommons.org/licenses/by/3.0/au/legalcode.

Use of Department of the Environment material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of the Environment endorses you or your use of the work).

Department of the Environment material used 'as supplied'

Provided you have not modified or transformed Department of the Environment material in any way including, for example, by changing the Department of the Environment text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Department of the Environment statistics - then the Department of the Environment prefers the following attribution:

Source: The Australian Government Department of the Environment

Derivative material

If you have modified or transformed Department of the Environment material, or derived new material from those of the Department of the Environment in any way, then Department of the Environment prefers the following attribution:

Based on The Australian Government Department of the Environment data

Use of the Coat of Arms

The terms under which the Coat of Arms can be used are set out on the It’s an Honour website (see www.itsanhonour.gov.au)

Other Uses

Inquiries regarding this licence and any other use of this document are welcome at: First Assistant Secretary, Policy Analysis and Implementation Division in the Department of the Environment on 02 6274 1590.

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 Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the 2015-16 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

Greg Hunt

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

Chief Finance Officer in the Department of the Environment on (02) 6274 1812.

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

USER GUIDE TO THE

PORTFOLIO ADDITIONAL ESTIMATE STATEMENTS

vii

USER GUIDE

The purpose of the 2015-16 Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements, is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by entities within the portfolio. The focus of the PAES differs from the Portfolio Budget Statements in one important aspect. While the PAES include an Entity Resource Statement to inform Parliament of the revised estimate of the total resources available to an entity, the focus of the PAES is on explaining the changes in resourcing by outcome 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 programmes supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (No. 3 and No. 4) 2015-16. 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) 2015-16 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 entities 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 entities in the portfolio.

Entity Additional Estimates Statements

A statement (under the name of the entity) for each entity affected by Additional Estimates.

Section 1: Entity overview and resources This section details the changes in total resources available to an entity, the impact of any measures since Budget, and impact of

Appropriation Bill No. 3 and No. 4.

Section 2: Revisions to outcomes and planned performance

This section details changes to Government outcomes and/or changes to the planned performance of entity programmes.

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.

Portfolio glossary Explains key terms relevant to the Portfolio.

Index (Optional) Alphabetical guide to the Statements

ix

CONTENTS

Portfolio overview ......................................................................................................... 3

Department of the Environment ................................................................................ 10

Bureau of Meteorology ............................................................................................... 66

Clean Energy Regulator ............................................................................................. 88

Sydney Harbour Federation Trust ........................................................................... 110

PORTFOLIO OVERVIEW

3

PORTFOLIO OVERVIEW

Since the 2015-16 Budget, the structure of the Portfolio has changed through the Administrative Arrangements Order which took effect on 21 September 2015 and 30 September 2015. These changes include:

 Responsibility for the new Cities and the Built Environment agenda.

 The transfer of the Clean Energy Finance Corporation to the Portfolio from the Treasury Portfolio.

 The transfer of the Australian Renewable Energy Agency to the Portfolio from the Industry, Innovation and Science Portfolio.

 The transfer of responsibility for water resources programmes and policy and the Water Efficiency Labelling and Standards scheme from the Portfolio to the Agriculture and Water Resources Portfolio. The Department will continue to develop and implement policy and programmes related to environmental water use and the functions of the Commonwealth Environmental Water Holder, including the protection and conservation of wetlands and freshwater ecosystems consistent with international obligations.

 The transfer of the Murray-Darling Basin Authority from the Portfolio to the Agriculture and Water Resources Portfolio.

On 16 June 2015 the National Water Commission ceased operations.

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

The Portfolio is led by the Minister for the Environment and the Minister for Cities and the Built Environment.

Portfolio Overview

4

Figure 1: Environment Portfolio Structure and Outcomes

Clean Energy Finance Corporation Chief Executive Officer - Mr Oliver Yates

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

Bureau of Meteorology Director - 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.

Department of the Environment Portfolio Secretary - Dr Gordon de Brouwer

Outcome 1: Conserve, protect and sustainably manage Australia's biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances. Outcome 2: Reduce Australia's greenhouse gas emissions, adapt to the impacts of climate change and

contribute to the negotiation of an effective global solution to climate change, through developing and implementing a national response to climate change. Outcome 3: Advancement of Australia's strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.

Outcome 4: Improve the health of rivers and freshwater ecosystems and water use efficiency through implementing water reforms, and ensuring enhanced sustainability, efficiency and productivity in the management and use of water resources.

Minister for the Environment

The Honourable Greg Hunt MP

Clean Energy Regulator Chief Executive Officer - Ms Chloe Munro

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

Sydney Harbour Federation Trust Executive Director - Mr Geoff Bailey

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

Great Barrier Reef Marine Park Authority Chairperson - Dr Russell Reichelt

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

Director of National Parkes Director - 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.

Acting Minister for Cities and the Built Environment The Honourable Greg Hunt MP

Climate Change Authority Acting Chief Executive Officer - Ms Shayleen Thompson 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.

Portfolio Overview

5

Portfolio resources

Table 1 shows those entities reporting in the PAES and the additional resources provided to the Portfolio in the 2015-16 budget year, by entity.

Table 1: Portfolio Resources (2015-16 Additional Estimates) Appropriation Appropriation Special Receipts Total

Bill No. 3 Bill No. 4 appropriation

($m) ($m) ($m) ($m) ($m)

Department of the

Environment

Administered appropriations 0.3 - - - 0.3

Departmental appropriations 9.0 - - - 9.0

Total: 9.3

Bureau of Meteorology

Departmental appropriations 1.0 - - - 1.0

Total: 1.0

Clean Energy Regulator

Administered appropriations 1.1 - - - 1.1

Total: 1.1

Sydney Harbour Federation Trust

Departmental appropriations - 20.0 - - 20.0

Total: 20.0

Portfolio total 31.4

Resources available within portfolio: 31.4

Note: this table excludes the impact of measures that are not for publication (nfp).

ENTITY ADDITIONAL ESTIMATES STATEMENTS

Department of the Environment ................................................................................ 10

Bureau of Meteorology ............................................................................................... 66

Clean Energy Regulator ............................................................................................. 88

Sydney Harbour Federation Trust ........................................................................... 110

10

DEPARTMENT OF THE ENVIRONMENT Section 1: Entity overview and resources ................................................................ 12

1.1 Strategic direction statement.................................................................................. 12

1.2 Entity resource statement ...................................................................................... 13

1.3 Entity Measures ..................................................................................................... 16

1.4 Additional estimates and variations ....................................................................... 18

1.5 Breakdown of additional estimates by appropriation bill ........................................ 23

Section 2: Revisions to outcomes and planned performance ............................... 25

2.1 Outcomes and performance information ................................................................ 25

Section 3: Explanatory tables and budgeted financial statements ....................... 51

3.1 Explanatory tables .................................................................................................. 51

3.2 Budgeted financial statements ............................................................................... 53

12

DEPARTMENT OF THE ENVIRONMENT

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

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

The Department’s responsibilities have changed since the 2015-16 Budget as a result of the Administrative Arrangements Order that took effect on 21 September 2015 and 30 September 2015. This is outlined further below.

 The Department has established a Cities Taskforce to develop and implement the Government’s new Cities Agenda. The Cities Agenda aims to improve the productivity, liveability and accessibility of cities through reforms that stimulate economic growth and ensure the wellbeing of current and future generations of Australians.

 The responsibility for water resources policy and programmes transferred to the Agriculture and Water Resources Portfolio. The Department will continue to develop and implement policy and programmes related to environmental water use and the functions of the Commonwealth Environmental Water Holder, including the protection and conservation of wetlands and freshwater ecosystems consistent with international obligations.

 The Clean Energy Finance Corporation and the Australian Renewable Energy Agency were transferred to the Portfolio. On 28 October 2015 the Minister for the Environment announced the creation of the Office of Climate Change and Renewables Innovation. This Office brings together the Clean Energy Regulator, the Clean Energy Finance Corporation, the Australian Renewable Energy Agency, the Climate Change Authority and the climate change and renewable energy functions in the Department.

A full outline of the Department’s Strategic Direction can be found in the 2015-16 Portfolio Budget Statements.

Department of the Environment Additional Estimates Statements

13

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Department of the Environment at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year, including variations through Appropriation Bill No. 3 and No. 4, Special Appropriations and Special Accounts.

Table 1.1: Department of the Environment resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 Actual

Available Appropriation 2014-15 $'000

Estimate as at Budget 2015-16

$'000

Proposed Additional Estimates 2015-16

$'000

Total estimate at Additional Estimates 2015-16

$'000

Ordinary annual services (a)

Departmental appropriation

Prior year appropriations (b) 83,648 79,629 - 79,629

Departmental appropriation (c) 403,902 388,000 8,974 396,974

s75 transfer from Industry (d) - 4,688 - 4,688

s75 transfer to Agriculture (e) (4,614) (16,620) - (16,620)

Payments to corporate entities (f, g) 41,045 40,470 - 40,470

s74 Retained revenue receipts (h) 65,111 57,078 (16,295) 40,783

Total 589,092 553,245 (7,321) 545,924

Administered expenses

Outcome 1 - Clean Land 427,218 443,070 - 443,070

Outcome 2 - Clean Air 5,464 6,317 272 6,589

s75 transfer from Industry (d) - 182,180 - 182,180

Outcome 4 - Clean Water (e) 258,674 361,613 - 361,613

s75 transfer to Agriculture (e) (25,852) (315,885) - (315,885)

Total 665,504 677,295 272 677,567

Total ordinary annual services

including Special Accounts 1,254,596 1,230,540 (7,049) 1,223,491

Total ordinary annual services

excluding Special Accounts A 970,645 920,883 (7,049) 913,834

Other services (i)

Administered expenses

Specific payments to States,

ACT, NT and local government

Outcome 1 - Clean Land 120 - - -

Outcome 4 - Clean Water 5,500 2,100 - 2,100

s75 transfer to Agriculture (e) (5,500) (2,100) - (2,100)

Total 120 - - -

Departmental non-operating

Prior year appropriations (b) 16,065 5,912 - 5,912

Equity injections (j) 2,745 645 - 645

Total 18,810 6,557 - 6,557

Administered non-operating

Prior year appropriations (b) 131,368 61,402 - 61,402

s75 transfer to Agriculture (e) - (37,780) - (37,780)

Administered assets and liabilities 62,204 65,606 - 65,606

s75 transfer to Agriculture (e) (37,780) (61,746) - (61,746)

Total 155,792 27,482 - 27,482

Total other services B 174,722 34,039 - 34,039

Total available annual

appropriations 1,429,318 1,264,579 (7,049) 1,257,530

Department of the Environment Additional Estimates Statements

14

Table 1.1: Department of the Environment Resource Statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued) Actual

Available Appropriation 2014-15 $'000

Estimate as at Budget 2015-16

$'000

Proposed Additional Estimates 2015-16

$'000

Total estimate at Additional Estimates 2015-16

$'000

Special appropriations

Special appropriations limited by

criteria/entitlement

Ozone Protection and Synthetic Greenhouse

Gas Management Act 1989 948 1,000 1,000 2,000

Public Governance, Performance and

Accountability (Consequential and

Transitional Provisions) Act 2014 4,305 - - -

Public Governance, Performance and

Accountability Act 2013 - s77 (k) 239 - 180 180

Special appropriations limited by

amount

Water Act 2007 15,000 40,000 - 40,000

s75 transfer to Agriculture (e) - (38,175) - (38,175)

Australian Renewable Energy Agency Act 2011

- - - -

s75 transfer from Industry (d) - 341,293 - 341,293

Total special appropriations C 20,492 344,118 1,180 345,298

Total appropriations excluding

Special Accounts 1,165,859 1,299,040 (5,869) 1,293,171

Special Accounts

Opening balance (l) 488,788 496,454 - 496,454

s75 transfer from Industry (d) - 4,919,000 - 4,919,000

s75 transfer to Agriculture (e) - (55,304) - (55,304)

Appropriation receipts (m) 283,951 309,657 - 309,657

s75 transfer to Agriculture (e) - (215) - (215)

Non-appropriation receipts to

Special Accounts (n) 21,274 14,093 11,153 25,246

s75 transfer from Industry (d) - 388,873 - 388,873

s75 transfer to Agriculture (e) - (1,594) - (1,594)

Total special accounts D 794,013 6,070,964 11,153 6,082,117

Total resourcing A+B+C+D 1,959,872 7,370,004 5,284 7,375,288

Less appropriations drawn from

annual or special appropriations above

and credited to special accounts (283,951) (309,442) - (309,442)

and payments to corporate entities

through annual appropriations (41,045) (40,470) - (40,470)

Total net resourcing for the

Department of the Environment 1,634,876 7,020,092 5,284 7,025,376

(a) Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16.

(b) Estimated adjusted balance carried from previous year for annual appropriations.

(c) Includes an amount of $25.112 million in 2015-2016 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'.

(d) The responsibility for renewable energy technology development and the Australian Renewable Energy Agency transferred from the Department of Industry, Innovation and Science as a result of the amended Administrative Arrangements Order dated 21 September 2015.

Department of the Environment Additional Estimates Statements

15

Table 1.1: Department of the Environment Resource Statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued) (e) The responsibility for water policy and resources transferred to the Department of Agriculture and Water Resources as a result of the amended Administrative Arrangements Order dated 21 September 2015

and 30 September 2015.

(f) 'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the Public Governance, Performance and Accountability (PGPA) Act 2013.

(g) As per the Environment Protection and Biodiversity Conservation Act 1999 section 514S, the Department of the Environment is directly appropriated the Director of National Parks' appropriations, which is then allocated to the Director of National Parks by the Secretary.

(h) Estimated retained revenue receipts under section 74 of the PGPA Act 2013.

(i) Appropriation Act (No.2) 2015-2016 and Appropriation Bill (No. 4) 2015-2016.

(j) This excludes the impact of the measures Antarctica — acquisition of new icebreaker and Antarctica Aurora Australis — Life Extension. These measures are not for publication due to commercial-in-confidence considerations.

(k) Repayments not provided for under other appropriations.

(l) 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) adjusted to align with 2014-15 Annual Report. For further information on special accounts see table 3.1.1.

(m) Appropriation receipts from the Department of the Environment annual and special appropriations included above.

(n) Excludes the statutory credits to the Water for the Environment Special Account.

Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Third party payments from and on behalf of other entities Estimate at Estimate at

Budget Additional

Estimates

2015-16 2015-16

$'000 $'000

Payments made to other entities for the provision of services

(disclosed above) 29,340 25,958

Payments made to corporate entities within the portfolio

Director of National Parks Appropriation Act (No.1) 2015-2016 40,470 40,470

Sydney Harbour Federation Trust Appropriation Bill (No.4) 2015-2016 - 20,000

Department of the Environment Additional Estimates Statements

16

1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Department of the Environment 2015-16 measures since Budget

Programme 2015-16 $'000 2016-17 $'000

2017-18 $'000 2018-19 $'000

Revenue measures

Revised charging arrangements (a) 1.6

Administered revenues

- 340 1,015 1,041

Total

- 340 1,015 1,041

Total revenue measures

Administered

- 340 1,015 1,041

Total

- 340 1,015 1,041

Expense measures

National Landcare Programme — efficiencies (b) 1.1

Administered expenses

- - - (2,750)

Total

- - - (2,750)

Green Army — project cap (b) 1.1

Administered expenses

- (44,679) (90,300) (182,516)

Total

- (44,679) (90,300) (182,516)

International Whale and Marine Mammal Conservation Initiative — additional funding (b) 1.2

Departmental expenses

1,691 - - -

Total

1,691 - - -

Revised charging arrangements (a) 1.6

Departmental expenses

- 49 49 49

Total

- 49 49 49

Cities and the Built Environment Taskforce — establishment (b) 1.7

Departmental expenses

4,109 - - -

Total

4,109 - - -

Department of the Environment Additional Estimates Statements

17

Table 1.2: Department of the Environment 2015-16 measures since Budget (continued)

Programme 2015-16 $'000 2016-17 $'000

2017-18 $'000 2018-19 $'000

National Wind Farm Commissioner and Independent Scientific Committee on Wind Turbines — establishment (b) 2.1

Administered expenses

22 29 29 15

Departmental expenses

519 818 825 279

Total

541 847 854 294

Resolution of Legal Matter (c)

Departmental expenses

nfp - - -

Total

nfp - - -

Administered

22 (44,650) (90,271) (185,251)

Departmental

6,319 867 874 328

Total expense measures

6,341 (43,783) (89,397) (184,923)

Capital measures

Antarctica — acquisition of new icebreaker (d) 3.1

Departmental capital

nfp nfp nfp nfp

Total

nfp nfp nfp nfp

Antarctica — Aurora Australis life extension works (e) 3.1

Departmental capital

- - nfp -

Total

- - nfp -

Total capital measures

Departmental

nfp nfp nfp nfp

Total

nfp nfp nfp nfp

Prepared on a Government Financial Statistics (fiscal) basis.

(a) This measure was announced in the 2015-16 Mid-Year Economic and Fiscal Outlook. Revenue is expected to increase as a result moving from partial to full cost recovery of services provided in administering the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and associated Regulations. Cost recovery arrangements for the Australian Bird and Bat Banding Scheme will cease.

(b) This measure was announced in the 2015-16 Mid-Year Economic and Fiscal Outlook.

(c) This measure was announced in the 2015-16 Mid-Year Economic and Fiscal Outlook. The expenditure for this measure is not for publication (nfp) in accordance with the terms of the legal agreement.

(d) This measure was announced in a joint press release of 29 October 2015 issued by the Prime Minister and the Minister for the Environment. The expenditure for this measure is not for publication (nfp) due to commercial-in-confidence considerations.

(e) This measure was announced in the 2015-16 Mid-Year Economic and Fiscal Outlook. The expenditure for this measure is not for publication (nfp) due to commercial-in-confidence considerations.

Department of the Environment Additional Estimates Statements

18

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Department of the Environment at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2015-16 Budget in Appropriation Bill No. 3 and No. 4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme

impacted 2015-16 $'000 2016-17

$'000

2017-18 $'000 2018-19 $'000

Outcome 1

Increase in estimates (administered) Revised charging arrangements 1.6 - 340 1,015 1,041

Decrease in estimates (administered)

National Landcare Programme — efficiencies 1.1 - - - (2,750)

Green Army — project cap 1.1 - (44,679) (90,300) (182,516)

Net impact on estimates for

Outcome 1 (administered)

- (44,339) (89,285) (184,225)

Increase in estimates (departmental)

Resolution of Legal Matter

nfp - - -

International Whale and Marine Mammal Conservation Initiative — additional funding 1.2 1,691 - - -

Revised charging arrangements 1.6 - 49 49 49

Cities and the Built Environment Taskforce — establishment 1.7 4,109 - - -

Net impact on estimates for

Outcome 1 (departmental)

5,800 49 49 49

Outcome 2

Increase in estimates (administered) Independent Scientific Committee on Wind Turbines — establishment 2.1 22 29 29 15

Net impact on estimates for

Outcome 2 (administered)

22 29 29 15

Department of the Environment Additional Estimates Statements

19

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget (continued) Programme

impacted 2015-16 $'000 2016-17

$'000

2017-18 $'000 2018-19 $'000

Increase in estimates (departmental)

National Wind Farm Commissioner and Independent Scientific Committee on Wind Turbines — establishment 2.1 519 818 825 279

Net impact on estimates for

Outcome 2 (departmental)

519 818 825 279

Outcome 3

Increase in estimates (capital)

Antarctica — acquisition of new icebreaker

3.1 nfp nfp nfp nfp

Antarctica — Aurora Australis life extension works 3.1 - - nfp -

Net impact on estimates for

Outcome 3 (capital)

nfp nfp nfp nfp

Department of the Environment Additional Estimates Statements

20

Table 1.4: Additional estimates and variations to outcomes from other variations Programme impacted 2015-16

$'000

2016-17 $'000 2017-18 $'000

2018-19 $'000

Outcome 1

Increase in estimates (administered)

Movement of funds — Reef Trust 1.1 - 3,430 - -

Parameter adjustment 1.4 - 54 53 58

Decrease in estimates (administered)

Parameter adjustment 1.1 - - (117) (356)

Other variations 1.1 - (1,682) (1,888) (1,888)

Net impact on estimates for

Outcome 1 (administered) - 1,802 (1,952) (2,186)

Increase in estimates (departmental)

Other variations All 3,805 8,094 10,824 10,446

Decrease in estimates (departmental)

Parameter adjustment All - - (176) (348)

Whole of Government Savings — PSSAP Administration Costs All (100) (110) (109) (109)

Whole of Government Savings — Enterprise Resource Planning Systems All - - (196) (239)

Increase in estimates (departmental-capital)

Movement of funds — EPBC Act IT Systems All 284 - - -

Other variations All 1,941 2,154 3,302 3,240

Decrease in estimates (departmental-capital)

Parameter adjustment All - - (10) (19)

Other variations All (671) (541) (844) (867)

Net impact on estimates for

Outcome 1 (departmental) 5,259 9,597 12,791 12,104

Outcome 2

Increase in estimates (administered)

Movement of funds — Solar Towns 2.1 250 - - -

Section 75 transfer from Industry for ARENA 2.3 182,180 74,436 74,334 25,712

Decrease in estimates (administered)

Movement of funds — Solar Towns 2.1 - (250) - -

Net impact on estimates for

Outcome 2 (administered) 182,430 74,186 74,334 25,712

Department of the Environment Additional Estimates Statements

21

Table 1.4: Additional estimates and variations to outcomes from other variations (continued) Programme

impacted 2015-16 $'000 2016-17

$'000

2017-18 $'000 2018-19 $'000

Increase in estimates (departmental)

Section 75 transfer from Industry for ARENA 2.3 4,688 6,360 3,960 3,642

Other variations All 6,419 4,495 4,384 3,256

Decrease in estimates (departmental)

Parameter adjustment All - - (34) (69)

Whole of Government Savings — PSSAP Administration Costs All (17) (18) (20) (21)

Whole of Government Savings — Enterprise Resource Planning Systems All - - (36) (45)

Increase in estimates (departmental-capital)

Other variations All 3 - - -

Decrease in estimates (departmental-capital)

Other variations All - (542) (2,115) (2,138)

Net impact on estimates for

Outcome 2 (departmental) 11,093 10,295 6,139 4,625

Outcome 3

Decrease in estimates (departmental)

Parameter adjustment 3.1 - - (80) (162)

Whole of Government Savings — PSSAP Administration Costs 3.1 (47) (47) (48) (49)

Whole of Government Savings — Enterprise Resource Planning Systems 3.1 - - (84) (106)

Increase in estimates (departmental-capital)

Other variations 3.1 1,168 1,157 1,151 1,296

Decrease in estimates (departmental-capital)

Parameter adjustment (a) 3.1 - - (15) (30)

Net impact on estimates for

Outcome 3 (departmental) 1,121 1,110 924 949

Outcome 4

Increase in estimates (administered)

Other variations 4.2 6,458 - - -

Decrease in estimates (administered)

Section 75 transfer to Agriculture 4.1 (315,885) (272,212) (197,154) (138,617) Decrease in estimates (administered Bill 2 SPP)

Section 75 transfer to Agriculture 4.1 (2,100) - - -

Decrease in estimates (administered non-operating)

Section 75 transfer to Agriculture 4.1 (61,746) (86,522) (571,134) (324,166)

Net impact on estimates for

Outcome 4 (administered) (373,273) (358,734) (768,288) (462,783)

Department of the Environment Additional Estimates Statements

22

Table 1.4: Additional estimates and variations to outcomes from other variations (continued) Programme

impacted 2015-16 $'000 2016-17

$'000

2017-18 $'000 2018-19 $'000

Increase in estimates (departmental)

Other variations All 27 6 4 4

Decrease in estimates (departmental)

Section 75 transfer to Agriculture 4.1 (16,620) (26,029) (16,665) (14,334)

Parameter adjustment All - - (46) (85)

Whole of Government Savings — PSSAP Administration Costs All (40) (29) (27) (25)

Whole of Government Savings — Enterprise Resource Planning Systems All - - (47) (56)

Other variations All (10,142) (12,566) (15,187) (13,684)

Decrease in estimates (departmental-capital)

Other variations All (2,441) (2,228) (1,494) (1,531)

Net impact on estimates for

Outcome 4 (departmental) (29,216) (40,846) (33,462) (29,712)

(a) This excludes foreign exchange impact for Antarctica — acquisition of new icebreaker measure.

Department of the Environment Additional Estimates Statements

23

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Department of the Environment through Appropriation Bill No. 3 and No. 4.

Table 1.5: Appropriation Bill (No. 3) 2015-16 2014-15 2015-16 2015-16 Additional Reduced

Available Budget Revised Estimates Estimates

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

Administered items

Outcome 1 - Clean Land 427,218 443,070 443,070 - -

Outcome 2 - Clean Air 5,464 188,497 188,769 272 -

Outcome 4 - Clean Water 232,822 45,728 45,728 - -

Total administered 665,504 677,295 677,567 272 -

Departmental programmes

Outcome 1 - Clean Land 215,796 204,602 218,127 13,525 -

Outcome 2 - Clean Air 40,397 39,767 46,691 6,924 -

Outcome 3 - Antarctica 109,020 108,042 109,163 1,121 -

Outcome 4 - Clean Water 75,120 64,127 51,531 - (12,596)

Total departmental 440,333 416,538 425,512 21,570 (12,596)

Total administered and

departmental 1,105,837 1,093,833 1,103,079 21,842 (12,596)

Department of the Environment Additional Estimates Statements

24

Table 1.6: Appropriation Bill (No. 4) 2015-16 2014-15 2015-16 2015-16 Additional Reduced

Available Budget Revised Estimates Estimates

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

Non-operating

Equity injection (a) 2,745 645 645 nfp -

Total non-operating 2,745 645 645 - -

Total other services 2,745 645 645 - -

(a) The expenditure for this measure in not for publication (nfp) due to commercial-in-confidence considerations.

Department of the Environment Additional Estimates Statements

25

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

OUTCOME 1: CONSERVE, PROTECT AND SUSTAINABLY MANAGE AUSTRALIA’S BIODIVERSITY, ECOSYSTEMS, ENVIRONMENT AND HERITAGE THROUGH RESEARCH, INFORMATION MANAGEMENT, SUPPORTING NATURAL RESOURCE MANAGEMENT, ESTABLISHING AND MANAGING COMMONWEALTH PROTECTED AREAS, AND REDUCING AND REGULATING THE USE OF POLLUTANTS AND HAZARDOUS SUBSTANCES.

Outcome 1 Strategy

The following is an update to the Strategy outlined in the 2015-16 Portfolio Budget Statements for the Green Army programme and includes additional information on the new Cities and Built Environment agenda. A new Programme 1.7 Cities and the Built Environment has been created under Outcome 1 in these Additional Estimates Statements.

The Green Army programme will continue to engage Australia’s communities on local environmental projects to help deliver national environment and heritage outcomes. The Government has announced a revised project profile of 500 projects engaging up to 5,000 Australians each year from 2016-17.

The Department is the lead on international whales and whaling issues, including Australia’s engagement in the International Whaling Commission. Australia is committed to the protection of whales and dolphins, is working to bring about a permanent end to all forms of commercial whaling, and is a strong supporter of the global moratorium on commercial whaling. In 2016, the Department will continue to subject the design and implementation of Japan’s whaling research to robust scientific scrutiny, and actively support and promote non-lethal research.

In 2015-16 the Department will develop and implement the Government’s new Cities Agenda. The Department has established a dedicated Cities Taskforce, drawing on expertise across the Commonwealth, including secondments from key government agencies including the Department of Infrastructure and Regional Development, the Treasury and the Department of Social Services. The new agenda aims to improve the productivity, liveability and accessibility of cities through reforms that stimulate economic growth and ensure Australia’s future wellbeing.

Department of the Environment Additional Estimates Statements

26

Through the new agenda, the Commonwealth will work with other levels of government, the private sector and the Australian community, to help capitalise on the opportunities arising from the growth and development of our cities. The Cities Agenda will pursue collaborative reforms to improve:

 Integrated and strategic longer term planning, especially improved housing accessibility outcomes and better access to employment opportunities.

 Productivity in urban centres through new and existing infrastructure, including greater use of innovative financing mechanisms.

 Sustainability and greening of our cities through cleaner, more efficient and resilient urban communities.

Department of the Environment Additional Estimates Statements

27

Table 2.1.1 Budgeted expenses for Outcome 1 Outcome 1: Conserve, protect and sustainably manage Australia's biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.

2014-15 Actual expenses

$'000

2015-16 Estimated expenses

$'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) 318,798 347,490 Less special accounts (255,775) (243,073)

Special accounts 255,775 244,792

Expenses not requiring appropriation in the Budget year (b) 272 -

Departmental expenses

Departmental appropriation (a) 78,723 84,246

Expenses not requiring appropriation in the Budget year (b) 2,828 4,202

Total for programme 1.1 400,621 437,657

Programme 1.2: Environmental Information and Research

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 35,456 29,284 Departmental expenses

Departmental appropriation (a) 11,564 8,436

Expenses not requiring appropriation in the Budget year (b) 850 358

Total for programme 1.2 47,870 38,078

Programme 1.3: Land Sector Initiatives

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 71,295 58,210 Expenses not requiring appropriation in the Budget year (b) 50 -

Departmental expenses

Departmental appropriation (a) 2,369 6,416

Expenses not requiring appropriation in the Budget year (b) 330 226

Total for programme 1.3 74,044 64,852

Programme 1.4: Conservation of Australia's Heritage

and Environment

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 9,680 7,124 Departmental expenses

Departmental appropriation (a) 30,126 27,939

Expenses not requiring appropriation in the Budget year (b) 2,484 2,068

Total for programme 1.4 42,290 37,131

Programme 1.5: Environmental Regulation

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 200 433

Other services (Appropriation Act No. 2 and Bill No. 4) 120 -

Departmental expenses

Departmental appropriation (a) 58,450 55,489

Expenses not requiring appropriation in the Budget year (b) 4,321 4,595

Total for programme 1.5 63,091 60,517

Department of the Environment Additional Estimates Statements

28

Table 2.1.1 Budgeted expenses for Outcome 1 Outcome 1: Conserve, protect and sustainably manage Australia's biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances.

2014-15 Actual expenses

$'000

2015-16 Estimated expenses

$'000

Programme 1.6: Management of Hazardous Wastes,

Substances and Pollutants

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,127 529

Less special account (429) (429)

Special appropriations 1,740 2,000

Special accounts 12,672 14,547

Expenses not requiring appropriation in the Budget year (b) 296 56

Departmental expenses

Departmental appropriation (a) 47,070 46,273

Expenses not requiring appropriation in the Budget year (b) 2,229 1,798

Total for programme 1.6 64,705 64,774

Programme 1.7: Cities and the Built Environment

Departmental expenses

Departmental appropriation (a) - 4,109

Total for programme 1.7 - 4,109

Outcome 1 Totals by appropriation type

Administered Expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 180,352 199,568 Other services (Appropriation Act No. 2 and Bill No. 4) 120 -

Special appropriations 1,740 2,000

Special accounts 268,447 259,339

Expenses not requiring appropriation in the Budget year (b) 618 56

Departmental expenses

Departmental appropriation (a) 228,302 232,908

Expenses not requiring appropriation in the Budget year (b) 13,042 13,247

Total expenses for Outcome 1 692,621 707,118

2014-15 2015-16

Average Staffing Level (number) 1,039 1,018

(a) Departmental Appropriation combines 'Ordinary annual services (Appropriation Act No. 1 and Bill No.3)' and 'Revenue from independent sources (s 74)'. Outcome 1 also has a departmental capital budget of $9.062 million in 2015-16.

(b) Expenses not requiring appropriation consists of depreciation, amortisation expense, asset write-off and audit fees.

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

Department of the Environment Additional Estimates Statements

29

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

There has been no change to the Programme 1.1 Objectives since the 2015-16 Budget.

Programme expenses 1.1: Sustainable Management of Natural Resources and the Environment

2014-15

Actual

$'000

2015-16 Revised Budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

Annual administered expenses:

National Landcare Programme:

Natural Heritage Trust 249,547 227,294 214,081 202,307 202,026

Less special account (249,547) (227,294) (214,081) (202,307) (202,026)

Environmental Stewardship Programme 11,261 10,339 9,945 9,918 9,980

Green Army 41,463 90,867 89,357 90,306 91,257

Reef 2050 Plan 7,702 15,865 34,124 39,419 39,461

Less special account (6,228) (15,779) (34,038) (39,333) (39,375)

Great Barrier Reef Foundation — contribution 3,125 3,125 3,125 - -

Tasmanian Forests Agreement —

Implementation Package 5,700 - - - -

Special account expenses:

Natural Heritage Trust of Australia Account 249,547 227,294 214,081 202,307 202,026

Reef Trust Special Account 6,228 17,498 39,701 41,008 41,005

Administered expenses not requiring

appropriation in the Budget year (a) 272 - - - -

Annual departmental expenses:

Departmental programme support 78,723 84,246 80,025 78,502 79,158

Departmental expenses not requiring

appropriation in the Budget year (a) 2,828 4,202 2,432 2,615 3,882

Total programme expenses 400,621 437,657 438,752 424,742 427,394

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Department of the Environment Additional Estimates Statements

30

Programme Deliverables

The following is an update to the Programme 1.1 Deliverables outlined in the 2015-16 Portfolio Budget Statements.

Deliverables 2014-15

Actual

2015-16 Revised budget

2016-17 Forward year 1

2017-18 Forward year 2

2018-19 Forward year 3

Green Army projects commenced 333 500 500 500 500

Green Army participants engaged 3,288 5,000 5,000 5,000 5,000

The Green Army Programme has a revised project profile of 500 projects engaging up to 5,000 Australians each year over the forward estimates.

Programme Key Performance Indicators

There has been no change to the Programme 1.1 Key Performance Indicators since the 2015-16 Budget.

Department of the Environment Additional Estimates Statements

31

Programme Objective 1.2: Environmental Information and Research

There has been no change to the Programme 1.2 Objective since the 2015-16 Budget.

Programme expenses 1.2: Environmental Information and Research

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

National Environmental Science Programme 23,690 27,254 25,520 25,520 25,520 International Whale Science Initiative 1,000 - - - -

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

Sustainable Australia - Suburban Jobs 8,736 - - - -

Annual departmental expenses:

Departmental programme support 11,564 8,436 6,367 6,489 6,423

Departmental expenses not requiring

appropriation in the Budget year (a) 850 358 263 264 347

Total programme expenses 47,870 38,078 34,180 34,303 34,320

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Programme Deliverables There has been no change to the Programme 1.2 Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

There has been no change to the Programme 1.2 Key Performance Indicators since the 2015-16 Budget.

Department of the Environment Additional Estimates Statements

32

Programme Objective 1.3: Land Sector Initiatives

There has been no change to the Programme 1.3 Objective since the 2015-16 Budget.

Programme expenses 1.3: Land Sector Initiatives

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Biodiversity Fund 70,163 56,965 42,423 1,997 -

Regional NRM Planning for Climate Change 1,132 1,245 - - -

Administered expenses not requiring

appropriation in the Budget year (a) 50 - - - -

Annual departmental expenses:

Departmental programme support 2,369 6,416 5,539 2,879 -

Departmental expenses not requiring

appropriation in the Budget year (a) 330 226 171 85 -

Total programme expenses 74,044 64,852 48,133 4,961 -

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Programme Deliverables There has been no change to the Programme 1.3 Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

There has been no change to the Programme 1.3 Key Performance Indicators since the 2015-16 Budget.

Department of the Environment Additional Estimates Statements

33

Programme Objective 1.4: Conservation of Australia’s Heritage and the Environment

There has been no change to the Programme 1.4 Objectives since the 2015-16 Budget.

Programme expenses 1.4: Conservation of Australia’s Heritage and the Environment

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Heritage Grants 4,411 4,420 4,420 4,420 4,420

National Trusts Partnership Programme 927 927 927 927 927

Community Heritage and Icons Grants

Programme 463 467 467 - -

Giant Pandas 3,879 1,310 1,364 1,369 1,376

Annual departmental expenses:

Departmental programme support 30,126 27,939 27,049 29,993 30,046

Departmental expenses not requiring

appropriation in the Budget year (a) 2,484 2,068 1,810 1,217 1,125

Total programme expenses 42,290 37,131 36,037 37,926 37,894

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Programme Deliverables

There has been no change to the Programme 1.4 Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

The following is an update to the third and fifth Key Performance Indicators for Programme 1.4 outlined in the 2015-16 Portfolio Budget Statements.

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

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

Department of the Environment Additional Estimates Statements

34

Programme Objective 1.5: Environmental Regulation

There has been no change to the Programme 1.5 Objectives since the 2015-16 Budget.

Programme expenses 1.5: Environmental Regulation

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Remediation of land affected by the Tiwi

Islands Plantation Project - 74 - - -

Environment Protection and Biodiversity

Conservation Act - Water Resources

Amendment - 259 259 259 259

Orangutan Reintroduction 200 100 - - -

Sustainable Australia - Sustainable

Regional Development (SPP) 120 - - - -

Annual departmental expenses:

Departmental programme support 58,450 55,489 57,660 55,051 53,056

Departmental expenses not requiring

appropriation in the Budget year (a) 4,321 4,595 4,228 3,970 4,665

Total programme expenses 63,091 60,517 62,147 59,280 57,980

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Programme Deliverables

There has been no change to the Programme 1.5 Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

The following is an update to the first and fourth Key Performance Indicators for Programme 1.5 outlined in the 2015-16 Portfolio Budget Statements.

 The number of hectares of habitat protected by offsets1 compared with the area impacted2 for approved projects.

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

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

2 Project footprint.

Department of the Environment Additional Estimates Statements

35

Programme Objective 1.6: Management of Hazardous Wastes, Substances and Pollutants

There has been no change to the Programme 1.6 Objective since the 2015-16 Budget.

Programme expenses 1.6: Management of Hazardous Wastes, Substances and Pollutants

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

National Environment Protection Council 429 429 429 429 429

Less special account (429) (429) (429) (429) (429)

Other 698 100 100 100 100

Special appropriations:

Ozone Protection and Synthetic

Greenhouse Gas Management Act 1989 1,740 2,000 - - -

Special account expenses:

Ozone Protection & Synthetic Greenhouse

Gas Account 11,304 12,804 12,804 12,804 12,804

National Environment Protection

Council Special Account 1,368 1,743 951 680 680

Administered expenses not requiring

appropriation in the Budget year (a) 296 56 - - -

Annual departmental expenses:

Departmental programme support 47,070 46,273 46,479 48,294 49,063

Departmental expenses not requiring

appropriation in the Budget year (a) 2,229 1,798 1,630 1,711 2,161

Total programme expenses 64,705 64,774 61,964 63,589 64,808

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense, asset write-offs and audit fees.

Programme Deliverables

There has been no change to the Programme 1.6 Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

The following is an update to the first Key Performance Indicator for Programme 1.6 outlined in the 2015-16 Portfolio Budget Statements.

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

 50 per cent of total TV and computer waste is recycled nationally in 2015-16.

 90 per cent of recycled materials is recovered for re-use.

Department of the Environment Additional Estimates Statements

36

Programme Objective 1.7: Cities and the Built Environment

Improve the productivity, liveability and accessibility of Australia’s urban areas through collaborative reforms that improve integrated long-term strategic planning and sustainability of cities, and improve the outcomes achieved from Australian Government investments.

Programme expenses 1.7: Cities and the Built Environment

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual departmental expenses:

Departmental programme support - 4,109 - - -

Total programme expenses - 4,109 - - -

Programme Deliverables

 Develop and release a discussion paper on the Cities Agenda for public consultation by March 2016.

 Host a national summit on the Cities Agenda by April 2016.

 Develop a framework for measuring the performance of Australia’s urban areas by December 2016.

Programme Key Performance Indicators

 Bilateral agreements are in place with willing jurisdictions by December 2016.

Department of the Environment Additional Estimates Statements

37

OUTCOME 2: REDUCE AUSTRALIA’S GREENHOUSE GAS EMISSIONS, ADAPT TO THE IMPACTS OF CLIMATE CHANGE AND CONTRIBUTE TO THE NEGOTIATION OF AN EFFECTIVE GLOBAL SOLUTION TO CLIMATE CHANGE, THROUGH DEVELOPING AND IMPLEMENTING A NATIONAL RESPONSE TO CLIMATE CHANGE.

Outcome 2 Strategy

There has been an addition to the Strategy outlined in the 2015-16 Portfolio Budget Statements. A new Programme 2.3 Renewable Energy Technology Development has been created under Outcome 2 for the functions of the Australian Renewable Energy Agency.

The Department’s activities under Outcome 2 will be complemented by the work of the Australian Renewable Energy Agency and the Clean Energy Finance Corporation, both of which joined the Environment portfolio under the Administrative Arrangements Order effective 21 September 2015.

The creation of the Office of Climate Change and Renewables Innovation in the Department will drive the direction of climate and renewable research in Australia.

Since the 2015-16 Budget, the 2015 United Nations Climate Change conference was held in Paris. On 12 December 2015, all 196 parties to the United Nations Framework Convention on Climate Change adopted the Paris Agreement. The Agreement sets out an enduring framework where all countries play their part in tackling climate change.

The Australian Government has released a National Climate Resilience and Adaptation Strategy to articulate how Australian governments, businesses and communities are managing the risks of a variable and changing climate. Under the Strategy, the Government has established an interagency working group to consider cross-cutting risks and opportunities arising from natural disasters and climate change, and developed a set of priorities for national engagement on building resilience.

Department of the Environment Additional Estimates Statements

38

Table 2.1.2 Budgeted expenses for Outcome 2 Outcome 2: Reduce Australia's greenhouse gas emissions, adapt to the impacts of climate change and contribute to the negotiation of an effective global solution to climate change, through developing and implementing a national response to climate change.

2014-15 Actual expenses

$'000

2015-16 Estimated expenses

$'000

Programme 2.1: Reducing Australia's Greenhouse

Gas Emissions

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,382 2,097

Departmental expenses

Departmental appropriation (a) 48,438 39,784

Expenses not requiring appropriation in the Budget year (b) 9,188 8,187

Total for programme 2.1 59,008 50,068

Programme 2.2: Adapting to Climate Change

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 4,055 4,492

Departmental expenses

Departmental appropriation (a) 4,305 2,037

Expenses not requiring appropriation in the Budget year (b) 1 5

Total for programme 2.2 8,361 6,534

Programme 2.3: Renewable Energy Technology Development

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - 182,180

Departmental expenses

Departmental appropriation (a) - 4,688

Total for programme 2.3 - 186,868

Outcome 2 Totals by appropriation type

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 5,437 188,769 Departmental expenses

Departmental appropriation (a) 52,743 46,509

Expenses not requiring appropriation in the Budget year (b) 9,189 8,192

Total expenses for Outcome 2 67,369 243,470

2014-15 2015-16

Average Staffing Level (number) 202 240

(a) Departmental Appropriation combines 'Ordinary annual services (Appropriation Act No. 1 and Bill No.3)' and 'Revenue from independent sources (s 74)'. Outcome 2 also has a departmental capital budget of $0.750 million in 2015-16.

(b) Expenses not requiring appropriation consists of depreciation, amortisation expense, audit fees and an approved operating loss.

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

Department of the Environment Additional Estimates Statements

39

Programme Objective 2.1: Reducing Australia’s Greenhouse Gas Emissions

There has been no change to the Programme 2.1 Objective.

Programme expenses 2.1: Reducing Australia’s Greenhouse Gas Emissions

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Extending the benefits of the Carbon

Farming initiative 883 475 428 - -

Solar Towns 499 1,600 - - -

Independent Scientific Committee on Wind

Turbines - 22 29 29 15

Annual departmental expenses:

Departmental programme support (a) 48,438 39,784 36,787 38,463 37,570 Departmental expenses not requiring

appropriation in the Budget year (b) 9,188 8,187 783 520 165

Total programme expenses 59,008 50,068 38,027 39,012 37,750

(a) This includes funding for the National Wind Farm Commissioner and the departmental funding for the Independent Scientific Committee on Wind Turbines.

(b) Expenses not requiring appropriation consists of depreciation, amortisation expense, audit fees and an approved departmental operating loss in 2015-16 funded from prior year appropriation.

Programme Deliverables

An additional Deliverable has been added for Programme 2.1 to those outlined in the 2015-16 Portfolio Budget Statements.

 Establish and support the Wind Farm Commissioner and the Independent Scientific Committee on Wind Turbines.

Programme Key Performance Indicators

There has been no change to the Programme 2.1 Key Performance Indicators.

Department of the Environment Additional Estimates Statements

40

Programme Objective 2.2: Adapting to Climate Change

There has been no change to the Programme 2.2 Objective.

Programme expenses 2.2: Adapting to Climate Change

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Natural resource management for

climate change 1,250 1,226 - - -

National Climate Change Adaptation

Research Facility 2,805 3,266 2,730 - -

Annual departmental expenses:

Departmental programme support 4,305 2,037 2,200 2,249 2,239

Departmental expenses not requiring

appropriation in the Budget year (a) 1 5 5 5 5

Total programme expenses 8,361 6,534 4,935 2,254 2,244

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Programme Deliverables

There has been no change to the Programme 2.2 Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

There has been no change to the Programme 2.2 Key Performance Indicators.

Department of the Environment Additional Estimates Statements

41

Programme Objective 2.3: Renewable Energy Technology Development

There has been no change to the Programme Objectives that relate to the functions of the Australian Renewable Energy Agency outlined in the 2015-16 Industry and Science Portfolio Budget Statements.

Programme expenses 2.3: Renewable Energy Technology Development

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Australian Renewable Energy Agency (a) - 182,180 74,436 74,334 25,712

Annual departmental expenses:

Departmental programme support - 4,688 6,360 3,960 3,642

Total programme expenses - 186,868 80,796 78,294 29,354

(a) The responsibility for renewable energy technology development and the Australian Renewable Energy Agency transferred from the Department of Industry, Innovation and Science as a result of the Administrative Arrangements Order dated 21 September 2015.

Programme Deliverables

There has been no change to the Programme Deliverables that relate to the Australian Renewable Energy Agency outlined in the 2015-16 Industry and Science Portfolio Budget Statements.

Programme Key Performance Indicators

There has been no change to the Programme Key Performance Indicators that relate to the Australian Renewable Energy Agency outlined in the 2015-16 Industry and Science Portfolio Budget Statements.

Department of the Environment Additional Estimates Statements

42

OUTCOME 3: ADVANCEMENT OF AUSTRALIA’S STRATEGIC, SCIENTIFIC, ENVIRONMENTAL AND ECONOMIC INTERESTS IN THE ANTARCTIC REGION BY PROTECTING, ADMINISTERING AND RESEARCHING THE REGION.

Outcome 3 Strategy

The following Strategy is an update to that outlined in the 2015-16 Portfolio Budget Statements.

The Government announced the preferred tenderer to design, build, operate and maintain the new icebreaker in October 2015. The procurement of the new icebreaker represents the single biggest investment in the history of Australia's Antarctic programme, with additional funding committed by the Government to modernise shore-side infrastructure and equipment at Australia's Antarctic stations and in Hobart. The new icebreaker is expected to be commissioned in the 2019-20 Antarctic summer season.

Department of the Environment Additional Estimates Statements

43

Table 2.1.3 Budgeted expenses for Outcome 3 Outcome 3: Advancement of Australia’s strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.

2014-15 Actual expenses

$'000

2015-16 Estimated expenses

$'000

Programme 3.1: Antarctica: Science, Policy and Presence

Administered expenses

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

Departmental expenses

Departmental appropriation (a) 120,914 109,935

Expenses not requiring appropriation in the Budget year (b) 69,097 54,276

Total for programme 3.1 190,023 164,223

Outcome 3 Totals by appropriation type

Administered expenses

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

Departmental expenses

Departmental appropriation (a) 120,914 109,935

Expenses not requiring appropriation in the Budget year (b) 69,097 54,276

Total expenses for Outcome 3 190,023 164,223

2014-15 2015-16

Average Staffing Level (number) 370 380

(a) Departmental Appropriation combines 'Ordinary annual services (Appropriation Act No. 1 and Bill No.3)' and 'Revenue from independent sources (s 74)'. Outcome 3 also has a departmental capital budget of $15.300 million in 2015-16.

(b) Expenses not requiring appropriation consists of depreciation, amortisation expense, audit fees and an approved operating loss.

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

Department of the Environment Additional Estimates Statements

44

Programme Objective 3.1: Antarctica: Science, Policy and Presence

There has been no change to the Programme 3.1 Objective since the 2015-16 Budget.

Programme expenses 3.1: Antarctica: Science, Policy and Presence

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Administered expenses not requiring

appropriation in the Budget year 12 12 12 12 12

Annual departmental expenses:

Departmental programme support (a) 120,914 109,935 88,991 88,324 89,006 Departmental expenses not requiring

appropriation in the Budget year (b) 69,097 54,276 53,107 54,697 53,842

Total programme expenses 190,023 164,223 142,110 143,033 142,860

(a) Includes expenses associated with both appropriations and goods and services revenues. The profile of revenue and the subsequent funded expenses over the forward years reflects that goods and services revenue is recognised as contracts that are confirmed over time (with contracts yet to be confirmed).

(b) Expenses not requiring appropriation consists of depreciation, amortisation expense, audit fees and an approved operating loss.

Programme deliverables

There has been no change to the Programme 3.1 Deliverables since the 2015-16 Budget.

Programme key performance indicators

There has been no change to the Programme 3.1 Key Performance Indicators since the 2015-16 Budget.

Department of the Environment Additional Estimates Statements

45

OUTCOME 4: IMPROVE THE HEALTH OF RIVERS AND FRESHWATER ECOSYSTEMS AND WATER USE EFFICIENCY THROUGH IMPLEMENTING WATER REFORMS, AND ENSURING ENHANCED SUSTAINABILITY, EFFICIENCY AND PRODUCTIVITY IN THE MANAGEMENT AND USE OF WATER RESOURCES.

Outcome 4 Strategy

Outcome 4 has changed since the 2015-16 Budget. The responsibility for water resources policy and programmes and the Water Efficiency Labelling and Standards scheme transferred to the Agriculture and Water Resources Portfolio under the Administrative Arrangements Order which took effect on 21 September 2015 and 30 September 2015. The following Strategy is an update to that outlined in the 2015-16 Portfolio Budget Statements.

The Department is responsible for the management of water entitlements acquired by the Australian Government to protect and restore environmental assets (rivers, floodplains and wetlands) in the Murray-Darling Basin. The Department will continue to undertake targeted actions and monitoring and evaluation activities to ensure Australia meets its international and national obligations under the Ramsar Convention on wetlands and the relevant provisions of the Environment Protection and Biodiversity Conservation Act 1999.

The Department will continue to support the statutory Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development, and undertake bioregional assessments and other research to improve our knowledge of and inform decision making on the impacts of coal seam gas and coal mining development on water resources.

Department of the Environment Additional Estimates Statements

46

Table 2.1.4 Budgeted expenses for Outcome 4 Outcome 4: Improve the health of rivers and freshwater ecosystems and water use efficiency through implementing water reforms, and ensuring enhanced sustainability, efficiency and productivity in the management and use of water resources.

2014-15 Actual expenses

$'000

2015-16 Estimated expenses

$'000

Programme 4.1: Water Reform

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 143,056 19,788 Special appropriations 420 1,825

Less special account (420) (1,825)

Special accounts 2,097 2,727

Expenses not requiring appropriation in the Budget year (b) 65,781 427

Departmental expenses

Departmental appropriation (a) 67,518 40,085

Expenses not requiring appropriation in the Budget year (b) 2,977 42

Total for programme 4.1 281,429 63,069

Programme 4.2: Commonwealth Environmental Water

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 23,012 29,925 Less special account (23,012) (29,925)

Special accounts 23,012 29,925

Expenses not requiring appropriation in the Budget year (b) 611 593

Departmental expenses

Departmental appropriation (a) 11,371 11,746

Expenses not requiring appropriation in the Budget year (b) 661 26

Total for programme 4.2 35,655 42,290

Outcome 4 Totals by appropriation type

Administered Expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 143,056 19,788 Special accounts 25,109 32,652

Expenses not requiring appropriation in the Budget year (b) 66,392 1,020

Departmental expenses

Departmental appropriation (a) 78,889 51,831

Expenses not requiring appropriation in the Budget year (b) 3,638 68

Total expenses for Outcome 4 317,084 105,359

2014-15 2015-16

Average Staffing Level (number) 339 188

(a) Departmental Appropriation combines 'Ordinary annual services (Appropriation Act No. 1 and Bill No.3)' and 'Revenue from independent sources (s 74)'.

(b) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

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

Department of the Environment Additional Estimates Statements

47

Programme Objective 4.1: Water Reform

The Programme 4.1 Objectives have changed as a result of the transfer of water policy and programmes and the Water Efficiency Labelling and Standards scheme to the Agriculture and Water Resources Portfolio. The following is an update to the objectives outlined in the 2015-16 Portfolio Budget Statements.

 Improve the knowledge of, and inform decision making on, the impacts of coal seam gas and coal mining development on water resources.

 Protect and conserve the health of wetlands and freshwater ecosystems consistent with international obligations.

Department of the Environment Additional Estimates Statements

48

Programme expenses 4.1: Water Reform

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Sustainable Rural Water Use and

Infrastructure (a) 107,873 13,331 - - -

MDB Environmental Knowledge

and Research (b) 1,900 1,900 1,900 1,900 1,900

National Urban Water and Desalination

Plan (a) 21,223 1,000 - - -

Water Resources Assessment and

Research Grant (b) 175 175 175 - -

Independent Expert Scientific Committee

on Coal Seam Gas and Large

Coal Mining (b) 585 885 1,035 1,035 1,035

Commonwealth contribution under the

Murray Darling Basin Agreement (a) 11,300 2,497 - - -

Special appropriations:

Water Act 2007 (a) 420 1,825 - - -

Less special account (a) (420) (1,825) - - -

Special account expenses:

Water Efficiency Labelling and Standards

Account (a) 1,677 392 - - -

Water for the Environment Special

Account (a) 420 1,825 - - -

Services for Other Entities and

Trust Moneys (a, c) - 510 510 510 510

Administered expenses not requiring

appropriation in the Budget year (d) 65,781 427 71 - -

Annual departmental expenses:

Departmental programme support 43,091 16,372 2,960 4,133 4,092

Science Based Framework for Coal

Seam Gas and Coal Mining Impacts on Water (b) 24,427 23,713 10,333 10,517 10,984

Departmental expenses not requiring

appropriation in the Budget year (d) 2,977 42 16 21 21

Total programme expenses 281,429 63,069 17,000 18,116 18,542

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

(b) The responsibility for this activity has remained with the Department.

(c) The Department has no discretion over the receipts returned to the Services for Other Entities and Trust Moneys Special Accounts.

(d) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Department of the Environment Additional Estimates Statements

49

Programme Deliverables

The Programme 4.1 Deliverables have changed as a result of the transfer of water policy and programmes to the Agriculture and Water Resources Portfolio. The following is an update to the deliverables outlined in the 2015-16 Portfolio Budget Statements.

 Advice provided by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development meets statutory requirements, is timely and publicly available.

 Complete the bioregional assessments for all 13 subregions by 30 June 2016.

 Complete at least four research products for publication by 30 June 2016.

 Ensure Australia meets obligations under the Ramsar Convention.

Programme Key Performance Indicators

The Programme 4.1 Key Performance Indicators have changed as a result of the transfer of water policy and programmes to the Agriculture and Water Resources Portfolio. The following is an update to the Key Performance Indicators outlined in the 2015-16 Portfolio Budget Statements.

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

Department of the Environment Additional Estimates Statements

50

Programme Objective 4.2: Commonwealth Environmental Water

There has been no change to the Programme 4.2 Objectives since the 2015-16 Budget.

Programme expenses 4.2: Commonwealth Environmental Water

2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

Budget estimate estimate estimate

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

Annual administered expenses:

Commonwealth Environmental Water Office 23,012 29,925 33,636 4,400 4,400

Less special account (23,012) (29,925) (33,636) (4,400) (4,400)

Special account expenses:

Environmental Water Holdings

Special Account 23,012 29,925 33,636 4,400 4,400

Administered expenses not requiring

appropriation in the Budget year (a) 611 593 - - -

Annual departmental expenses:

Departmental programme support 11,371 11,746 793 799 805

Departmental expenses not requiring

appropriation in the Budget year (a) 661 26 - - -

Total programme expenses 35,655 42,290 34,429 5,199 5,205

(a) Expenses not requiring appropriation consists of depreciation, amortisation expense and audit fees.

Programme Deliverables

There has been no change to the Programme 4.2 Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

There has been no change to the Programme 4.2 Key Performance Indicators since the 2015-16 Budget.

Department of the Environment Additional Estimates Statements

51

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 of the Environment. The corresponding table in the 2015-16 Portfolio Budget Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances Opening Closing

balance Receipts Payments Adjustments balance

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

Natural Heritage Trust of Australia

Account (A) (a)

2015-16 1 391,237 228,582 (227,294) - 392,525

Natural Heritage Trust of Australia

Account (A) (a)

2014-15 411,773 232,505 (253,041) - 391,237

Ozone Protection and SGG

Account (A) (b)

2015-16 1 21,571 10,809 (12,804) - 19,576

Ozone Protection and SGG

Account (A) (b)

2014-15 21,652 10,860 (10,941) - 21,571

Reef Trust Special Account 2014 (A) (c)

2015-16 1 3,430 20,474 (17,498) - 6,406

Reef Trust Special Account 2014 (A) (c)

2014-15 - 9,658 (6,228) - 3,430

National Environment Protection

Council Special Account (A) (d)

2015-16 1 4,279 680 (1,743) - 3,216

National Environment Protection

Council Special Account (A) (d)

2014-15 - 5,688 (1,409) - 4,279

Clean Energy Finance Corporation

Special Account (A) (e)

2015-16 2 - 388,873 (150,000) 4,919,000 5,157,873

Clean Energy Finance Corporation

Special Account (A) (e)

2014-15 - - - - -

Services for Other Entities and Trust

Moneys Special Account (A) (f)

2015-16 4 1,265 510 (510) - 1,265

Services for Other Entities and Trust

Moneys Special Account (A) (f)

2014-15 828 698 (261) - 1,265

Department of the Environment Additional Estimates Statements

52

Table 3.1.1: Estimates of special account flows and balances (continued) Opening Closing

balance Receipts Payments Adjustments balance

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

Water Efficiency Labelling and

Standards Account (A) (g, j)

2015-16 4 2,370 151 (392) (2,129) -

Water Efficiency Labelling and Standards Account (A) (g)

2014-15 2,280 1,727 (1,637) - 2,370

Water for the Environment Special

Account (A) (h, j)

2015-16 4 15,000 40,000 (1,825) (53,175) -

Water for the Environment Special

Account (A) (h)

2014-15 - 15,000 - - 15,000

Environmental Water Holdings

Special Account (A) (i)

2015-16 4 58,567 32,398 (29,925) - 61,040

Environmental Water Holdings

Special Account (A) (i)

2014-15 53,083 29,787 (24,303) - 58,567

Total special accounts 2015-16 Budget estimate 497,719 722,477 (441,991) 4,863,696 5,641,901

Total special accounts 2014-15 actual 489,616 305,923 (297,820) - 497,719

(A) = Administered (D) = Departmental

(a) Natural Heritage Trust of Australia Account - s21 FMA Act [Natural Heritage Trust of Australia Act 1997].

(b) Ozone Protection and SGG Account - s21 FMA Act [Ozone Protection and Synthetic Greenhouse Gas Management Act 1989].

(c) Reef Trust Special Account 2014.

(d) National Environment Protection Council Special Account - Part 6, section 53 of the National Environment Protection Council Act 1994.

(e) Clean Energy Finance Corporation Special Account - s80 PGPA Act [s45 Clean Energy Finance Corporation Act 2012]. Transferred from the Department of Industry, Innovation and Science in the Administrative Arrangements Order dated 21 September 2015.

(f) Services for Other Entities and Trust Moneys Special Account - s20 FMA Act Det 2010/02.

(g) Water Efficiency Labelling and Standards Account - s21 FMA Act [Water Efficiency Labelling and Standards Act 2004].

(h) Water for the Environment Special Account - s21 FMA Act [Water Act 2007].

(i) Environmental Water Holdings Special Account - s21 FMA Act [Water Act 2007].

(j) Transferred to the Department of Agriculture and Water Resources in the Administrative Arrangements Order dated 21 September 2015 and 30 September 2015.

Department of the Environment Additional Estimates Statements

53

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

Changes to departmental and administered budgeted financial statements since the 2015-16 Portfolio Budget Statements includes the transfer of responsibility for water policy and resources functions and the Water Efficiency Labelling Standards scheme to the Department of Agriculture and Water Resources; the transfer of the responsibility for renewable energy technology development and the Australian Renewable Energy Agency from the Department of Industry, Innovation and Science into the Portfolio; and the transfer of responsibility for the Clean Energy Finance Corporation Act 2012 into the Portfolio from the Department of the Treasury as a result of the Administrative Arrangements Orders dated 21 September 2015 and 30 September 2015. Other changes include the actual financial results for 2014-15, new measures, whole of government savings, movement of funds between years, revised estimates of revenue from independent sources 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:

 New measures announced since budget, as outlined in Tables 1.2 and 1.3;

 Transfer of responsibility of functions between agencies from the amended Administrative Arrangements Orders, as outlined in Table 1.4;

 Whole of government savings, movement of funds between year, and indexation updates, as outlined in Table 1.4; and

 The revision of revenue from independent sources and associated expenses.

Balance Sheet

The budgeted departmental balance sheet has been updated for the impact of the 2014-15 actuals which changed the opening balances for 2015-16.

Statement of Changes in Equity

The changes in equity estimates from the 2015-16 Portfolio Budget Statements reflect the updated 30 June 2015 actual operating result.

Department of the Environment Additional Estimates Statements

54

Schedule of Administered Activity

Schedule of budgeted income and expenses

The revised schedule primarily reflects the impact on administered expenses of measures outlined in Tables 1.2 and 1.3 and the transfer of responsibility of functions between agencies from the amended Administrative Arrangements Orders.

Schedule of budgeted assets and liabilities

The overall change to the budgeted administered balance sheet primarily reflects the transfer of responsibility of functions between agencies from the amended Administrative Arrangements Orders and the update of the 2014-15 actuals which resulted in changed opening balances for 2015-16.

Department of the Environment Additional Estimates Statements

55

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

budget estimate estimate estimate

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

EXPENSES

Employee benefits 218,860 206,691 189,511 190,317 187,345

Suppliers 210,034 188,086 138,273 137,689 137,859

Grants 8,563 10,756 4,099 1,901 1,050

Payments to the Director of National Parks 41,184 40,470 39,983 40,069 40,153

Depreciation and amortisation 61,030 50,713 46,622 47,282 48,390

Finance costs 17,331 17,100 17,100 17,100 17,100

Write-down and impairment of assets 6,186 - - - -

Other expenses 12,626 3,150 400 400 400

Total expenses 575,814 516,966 435,988 434,758 432,297

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 48,564 40,783 26,075 24,250 24,250

Other revenue 9,923 723 723 723 723

Total own-source revenue 58,487 41,506 26,798 24,973 24,973

Gains

Gains from sale of assets 322 - - - -

Other gains 5,615 - - - -

Total gains 5,937 - - - -

Total own-source income 64,424 41,506 26,798 24,973 24,973

Net cost of services 511,390 475,460 409,190 409,785 407,324

Revenue from Government 419,596 400,400 345,468 345,403 341,834

Deficit attributable to the Australian

Government (91,794) (75,060) (63,722) (64,382) (65,490)

Total comprehensive loss attributable

to the Australian Government (91,794) (75,060) (63,722) (64,382) (65,490)

Note: Impact of net cash appropriation arrangements

2014-15 2015-16 2016-17 2017-18 2018-19

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

Total comprehensive loss excluding

depreciation/amortisation expenses previously funded

through revenue appropriations (30,764) (24,347) (17,100) (17,100) (17,100) less depreciation/amortisation expenses

previously funded through revenue

appropriations (a) 61,030 50,713 46,622 47,282 48,390

Total comprehensive loss - as per the

Statement of comprehensive income (91,794) (75,060) (63,722) (64,382) (65,490)

Prepared on Australian Accounting Standards basis.

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation and amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the Departmental Capital Budget) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding Departmental Capital Budgets, please refer to Table 3.2.5 Departmental Capital Budget Statement.

Department of the Environment Additional Estimates Statements

56

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

budget estimate estimate estimate

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

ASSETS

Financial assets

Cash and equivalents 1,772 1,772 1,772 1,772 1,772

Trade and other receivables 90,579 80,171 80,171 80,171 80,171

Other financial assets 2,910 2,910 2,910 2,910 2,910

Total financial assets 95,261 84,853 84,853 84,853 84,853

Non-financial assets

Buildings 261,559 245,145 228,972 210,960 191,508

Property, plant and equipment (a) 96,052 88,536 79,430 72,572 66,456

Intangibles 17,795 17,052 21,590 26,657 31,360

Inventories 8,278 8,278 8,278 8,278 8,278

Other non-financial assets 5,359 5,360 5,360 5,360 5,360

Total non-financial assets 389,043 364,371 343,630 323,827 302,962

Total assets 484,304 449,224 428,483 408,680 387,815

LIABILITIES

Payables

Suppliers 12,182 12,182 12,182 12,182 12,182

Grants 125 125 125 125 125

Other payables 16,230 6,976 6,976 6,976 6,976

Total payables 28,537 19,283 19,283 19,283 19,283

Provisions

Employee provisions 62,972 68,364 68,364 68,364 68,364

Antarctic make good provisions (b) 482,601 499,701 516,801 533,901 551,001 Other provisions 7,959 7,959 7,959 7,959 7,959

Total provisions 553,532 576,024 593,124 610,224 627,324

Total liabilities 582,069 595,307 612,407 629,507 646,607

Net assets (b) (97,765) (146,083) (183,924) (220,827) (258,792)

EQUITY (c)

Parent entity interest

Contributed equity 152,770 178,811 204,692 232,171 259,696

Reserves 326,227 326,227 326,227 326,227 326,227

Accumulated deficit (576,762) (651,121) (714,843) (779,225) (844,715)

Total parent entity interest (97,765) (146,083) (183,924) (220,827) (258,792) Total equity (97,765) (146,083) (183,924) (220,827) (258,792)

Prepared on Australian Accounting Standards basis.

(a) This excludes the impact of the measures Antarctica — acquisition of new icebreaker and Antarctica — Aurora Australis — Life Extension. These measures are not for publication due to commercial-in-confidence considerations.

(b) 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.

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

Department of the Environment Additional Estimates Statements

57

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget Year 2015-16) Retained Asset Contributed Total

earnings revaluation equity/ equity

reserve capital

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

Opening balance as at 1 July 2015

Balance carried forward from previous period (576,762) 326,227 152,770 (97,765)

Adjusted opening balance (576,762) 326,227 152,770 (97,765)

Comprehensive income

Deficit for the period (75,060) - - (75,060)

Total comprehensive income (75,060) - - (75,060)

of which:

Attributable to the Australian Government (75,060) - - (75,060)

Transactions with owners

Distributions to owners

Returns of capital:

Restructuring 701 - - 701

Contributions by owners

Equity Injection - Appropriations (a) - - 929 929

Departmental Capital Budget - - 25,112 25,112

Sub-total transactions with owners 701 - 26,041 26,742

Estimated closing balance as at 30 June 2016 (651,121) 326,227 178,811 (146,083)

Closing balance attributable to the

Australian Government (651,121) 326,227 178,811 (146,083)

Prepared on Australian Accounting Standards basis.

(a) This excludes the impact of the measure Antarctica — acquisition of new icebreaker. This measure is not for publication due to commercial-in-confidence considerations.

Department of the Environment Additional Estimates Statements

58

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

budget estimate estimate estimate

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

OPERATING ACTIVITIES

Cash received

Appropriations 527,348 451,591 371,543 369,653 366,084

Sale of goods and rendering of services 47,735 40,783 26,075 24,250 24,250

Net GST received 14,842 - - - -

Other 9,133 - - - -

Total cash received 599,058 492,374 397,618 393,903 390,334

Cash used

Employees 249,792 210,553 189,511 190,317 187,345

Suppliers 230,689 186,662 137,550 136,966 137,136

Grants 9,278 10,756 4,099 1,901 1,050

Payments to the Director of National Parks 41,184 40,470 39,983 40,069 40,153

s74 Retained Revenue Receipts

transferred to OPA 65,111 40,783 26,075 24,250 24,250

Other 2,243 3,150 400 400 400

Total cash used 598,297 492,374 397,618 393,903 390,334

Net cash used by operating activities 761 - - - -

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property,

plant and equipment 414 - - - -

Total cash received 414 - - - -

Cash used

Purchase of property, plant and

equipment and intangibles (a) 31,045 26,041 25,881 25,429 25,475

Total cash used 31,045 26,041 25,881 25,429 25,475

Net cash used by investing activities (30,631) (26,041) (25,881) (25,429) (25,475) FINANCING ACTIVITIES

Cash received

Contributed equity (a) 2,333 929 945 400 300

Departmental capital budget 25,555 25,112 24,936 25,029 25,175

Total cash received 27,888 26,041 25,881 25,429 25,475

Net cash from financing activities 27,888 26,041 25,881 25,429 25,475

Net increase (decrease)

in cash held (1,982) - - - -

Cash and cash equivalents at the

beginning of the reporting period 3,754 1,772 1,772 1,772 1,772

Cash and cash equivalents at the

end of the reporting period 1,772 1,772 1,772 1,772 1,772

Prepared on Australian Accounting Standards basis.

(a) This excludes the impact of the measures Antarctica — acquisition of new icebreaker and Antarctica — Aurora Australis — Life Extension. These measures are not for publication due to commercial-in-confidence considerations.

Department of the Environment Additional Estimates Statements

59

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June) 2014-15 2015-16 2016-17 2017-18 2018-19

Actual Revised Forward Forward Forward

budget estimate estimate estimate

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

NEW CAPITAL APPROPRIATIONS

Departmental Capital Budget - Act 1 25,351 25,112 24,936 25,029 25,175

Equity injections - Act 2 (a) 2,745 645 945 400 300

Total new capital appropriations 28,096 25,757 25,881 25,429 25,475

Provided for:

Purchase of non-financial assets (a) 28,096 25,757 25,881 25,429 25,475

Total Items 28,096 25,757 25,881 25,429 25,475

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriations (a, b) 5,490 929 945 400 300

Funded by capital appropriation (c) 25,555 25,112 24,936 25,029 25,175

TOTAL 31,045 26,041 25,881 25,429 25,475

RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLE

Total purchases (a) 31,045 26,041 25,881 25,429 25,475

Total cash used to

acquire assets 31,045 26,041 25,881 25,429 25,475

Prepared on Australian Accounting Standards basis.

(a) This excludes the impact of the measures Antarctica— acquisition of new icebreaker and Antarctica — Aurora Australis — Life Extension. These measures are not for publication due to commercial-in-confidence considerations.

(b) Includes both current and prior Appropriation Act 2 and Appropriation Bills 4/6 appropriations.

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

Department of the Environment Additional Estimates Statements

60

Table 3.2.6: Statement of asset movements (2015-16 Budget year)

Buildings

$'000

Other property, plant and equipment

$'000

Computer software and intangibles

$'000

Total

$'000

As at 1 July 2015

Gross book value 292,581 115,592 66,812 474,985

Accumulated depreciation/amortisation

and impairment (31,022) (19,540) (49,017) (99,579)

Opening net book balance 261,559 96,052 17,795 375,406

CAPITAL ASSET ADDITIONS

Estimated expenditure on

new or replacement assets

By purchase - appropriation equity (a) - - 929 929

By purchase - appropriation ordinary

annual services (b) 7,415 13,048 4,649 25,112

Total additions 7,415 13,048 5,578 26,041

Other movements

Depreciation/amortisation expense (23,827) (20,229) (6,657) (50,713)

Other (2) (335) 336 (1)

Total other movements (23,829) (20,564) (6,321) (50,714)

As at 30 June 2016

Gross book value 299,996 128,640 72,390 501,026

Accumulated depreciation/amortisation

and impairment (54,851) (40,104) (55,338) (150,293)

Closing net book balance 245,145 88,536 17,052 350,733

Prepared on Australian Accounting Standards basis.

(a) “Appropriation equity" refers to equity injections appropriations provided through Appropriation Act (No. 2) 2015-16 and Bill (No. 4) 2015-16.

(b) “Appropriation ordinary annual services" refers to funding provided through Appropriation Act (No.1) 2015-16 and Bill (No. 3) 2015-16 for Departmental Capital Budgets.

Entity Additional Estimates Statement — Department of the Environment

61

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES ADMINISTERED ON

BEHALF OF GOVERNMENT

Suppliers 132,789 201,444 189,044 155,912 147,603

Grants 489,732 497,362 372,031 318,658 277,063

Depreciation and amortisation 8,957 1,088 83 12 12

Write-down and impairment of assets 58,065 - - - -

Other expenses 1,740 3,310 1,364 1,369 1,376

Total expenses administered on

behalf of Government 691,283 703,204 562,522 475,951 426,054

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other taxes 1,754 985 1,498 1,498 1,498

Total taxation revenue 1,754 985 1,498 1,498 1,498

Non-taxation revenue

Sale of goods and rendering of services 864 6,490 - - -

Fees and fines 13,081 33,393 32,945 33,287 33,346

Interest 230 97 38 14 3

Other revenue 9,845 2,168 1,360 72 72

Total non-taxation revenue 24,020 42,148 34,343 33,373 33,421

Total own-source revenues administered on behalf of

Government 25,774 43,133 35,841 34,871 34,919

Gains

Reversal of previous asset

write-downs and impairments 213,099 - - - -

Other gains 132,806 137,003 168,447 587,262 324,166

Total gains administered on behalf

of Government 345,905 137,003 168,447 587,262 324,166

Total own-sourced income

administered on behalf of Government 371,679 180,136 204,288 622,133 359,085

Net cost of (contribution by) services 319,604 523,068 358,234 (146,182) 66,969

Surplus (deficit) after income tax (319,604) (523,068) (358,234) 146,182 (66,969) OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus 139,763 - - - -

Total other comprehensive income 139,763 - - - -

Total comprehensive income (loss) (179,841) (523,068) (358,234) 146,182 (66,969) Prepared on Australian Accounting Standards basis.

Department of the Environment Additional Estimates Statements

62

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS

Financial assets

Taxation receivables 274 274 274 274 274

Trade and other receivables 8,228 7,442 7,102 6,934 6,874

Other investments 678,219 1,683,295 1,678,643 1,530,979 1,469,562

Total financial assets 686,721 1,691,011 1,686,019 1,538,187 1,476,710

Non-financial assets

Land 1,467 - - - -

Property, plant and equipment 516,471 - - - -

Heritage and cultural assets 1,048 1,036 1,024 1,012 1,000

Water Assets 2,516,203 2,549,077 2,717,524 3,304,786 3,628,952

Computer Software 1,147 71 - - -

Inventories 12,137 12,137 12,137 12,137 12,137

Other 1,366 1,366 1,366 1,366 1,366

Total non-financial assets 3,049,839 2,563,687 2,732,051 3,319,301 3,643,455 Total assets administered on

behalf of Government 3,736,560 4,254,698 4,418,070 4,857,488 5,120,165 LIABILITIES

Payables

Suppliers 9,827 9,827 9,827 9,827 9,827

Grants 13,224 13,224 13,224 13,224 13,224

Other 792 792 792 792 792

Total payables 23,843 23,843 23,843 23,843 23,843

Provisions

Other 74 74 74 74 74

Total provisions 74 74 74 74 74

Total liabilities administered on

behalf of Government 23,917 23,917 23,917 23,917 23,917

Net assets 3,712,643 4,230,781 4,394,153 4,833,571 5,096,248

Prepared on Australian Accounting Standards basis.

Department of the Environment Additional Estimates Statements

63

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES

Cash received

Sales of goods and rendering of services 630 6,490 - - -

Interest 286 97 38 14 3

Taxes 23,223 985 1,498 1,498 1,498

Fees and fines 12,755 33,393 32,945 33,287 33,346

Net GST received 34,801 - - - -

Other 20,099 2,168 1,360 72 72

Total cash received 91,794 43,133 35,841 34,871 34,919

Cash used

Suppliers 141,842 201,444 189,044 155,912 147,603

Grants 579,145 497,362 372,031 318,658 277,063

Other 1,050 3,310 1,364 1,369 1,376

Total cash used 722,037 702,116 562,439 475,939 426,042

Net cash used by operating activities (630,243) (658,983) (526,598) (441,068) (391,123) INVESTING ACTIVITIES

Cash received

Repayments of advances and loans 2,310 786 340 168 60

Transfers from other entities - 338,213 169,979 123,346 81,558

Total cash received 2,310 338,999 170,319 123,514 81,618

Cash used

Purchase of intangibles 61,660 3,860 - - -

Total cash used 61,660 3,860 - - -

Net cash used by

investing activities (59,350) 335,139 170,319 123,514 81,618

Net decrease in cash held (689,593) (323,844) (356,279) (317,554) (309,505) Cash and cash equivalents at beginning of reporting period - - - - -

Cash from Official Public Account for:

- Appropriations 473,257 414,165 295,049 214,230 164,617

- Special Accounts 312,107 309,442 248,689 242,069 241,830

Total cash from Official Public Account 785,364 723,607 543,738 456,299 406,447 Cash to Official Public Account for:

- Appropriations (65,376) (18,903) (15,665) (19,799) (19,784)

- Special Accounts (30,395) (380,860) (171,794) (118,946) (77,158)

Total cash to Official Public Account (95,771) (399,763) (187,459) (138,745) (96,942) Cash and cash equivalents at end

of reporting period - - - - -

Prepared on Australian Accounting Standards basis.

Department of the Environment Additional Estimates Statements

64

Table 3.2.10: Schedule of administered capital budget (for the period ended 30 June) 2014-15 2015-16 2016-17 2017-18 2018-19 Actual Revised Forward Forward Forward

budget estimate estimate estimate

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

NEW CAPITAL APPROPRIATIONS

Administered Assets and

Liabilities - Act 2 62,204 3,860 - - -

Total new capital appropriations 62,204 3,860 - - -

Provided for:

Purchase of non-financial assets 62,204 3,860 - - -

Total Items 62,204 3,860 - - -

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriations (a) 61,660 3,860 - - -

TOTAL AMOUNT SPENT 61,660 3,860 - - -

RECONCILIATION OF CASH USED TO

ACQUIRE ASSETS TO ASSET

MOVEMENT TABLE

Total accrual purchases 61,660 3,860 - - -

Total cash used to acquire assets 61,660 3,860 - - -

Prepared on Australian Accounting Standards basis.

(a) Includes both current and prior Appropriation Act 2 and Appropriation Bills 4/6 appropriations.

Entity Additional Estimates Statement — Department of the Environment

65

Table 3.2.11: Statement of administered asset movements (2015-16 Budget year) Land Property, plant and equipment

Heritage and cultural assets

Water Assets Computer Software

Total

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

As at 1 July 2015

Gross book value 1,467 809,672 1,060 3,004,962 4,082 3,821,243

Accumulated depreciation,

amortisation and impairment - (293,201) (12) (488,759) (2,935) (784,907)

Opening net book balance 1,467 516,471 1,048 2,516,203 1,147 3,036,336

CAPITAL ASSET ADDITIONS

Estimated expenditure on new

or replacement assets

By purchase - appropriation equity (a) - - - 3,860 - 3,860

Total additions - - - 3,860 - 3,860

Other movements

Assets received free of charge - - - 137,003 - 137,003

Depreciation/amortisation expense - - (12) - (1,076) (1,088)

Disposals

From disposal of entities or

operations (inc restructuring) (1,467) (516,591) - (107,989) - (626,047)

Other - 120 - - - 120

Total other movements (1,467) (516,471) (12) 29,014 (1,076) (490,012)

As at 30 June 2016

Gross book value - 293,201 1,060 3,037,836 4,082 3,336,179

Accumulated depreciation,

amortisation and impairment - (293,201) (24) (488,759) (4,011) (785,995)

Closing net book balance - - 1,036 2,549,077 71 2,550,184

Prepared on Australian Accounting Standards basis.

(a) “Appropriation equity" refers to Administered Assets and Liabilities appropriations provided through Appropriation Act (No. 2) 2015-16 and Bill No. 4 2015-16.

66

BUREAU OF METEOROLOGY Section 1: Entity overview and resources ................................................................ 68

1.1 Strategic direction statement.................................................................................. 68

1.2 Entity resource statement ...................................................................................... 69

1.3 Entity Measures ..................................................................................................... 70

1.4 Additional estimates and variations ....................................................................... 71

1.5 Breakdown of additional estimates by appropriation bill ........................................ 72

Section 2: Revisions to outcomes and planned performance ............................... 73

2.1 Outcomes and performance information ................................................................ 73

Section 3: Explanatory tables and budgeted financial statements ....................... 76

3.1 Explanatory tables .................................................................................................. 76

3.2 Budgeted financial statements ............................................................................... 77

68

BUREAU OF METEOROLOGY

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

There has been an addition to the Strategy outlined in the 2015-16 Portfolio Budget Statements.

Under the Stronger Farmers, Stronger Economy — new drought management framework measure to support drought preparedness and drought-affected local communities, the Bureau will receive $3.3 million over four years from 2015-16 to improve the seasonal climate forecast service for the Australian agricultural sector. This service will provide more regular, detailed and accurate climate forecasts and forms part of the Government's White Paper on Agricultural Competitiveness.

Machinery of Government changes effected in September 2015 transferred responsibility for administration of the Water Act 2007 to the Minister for Agriculture and Water Resources, except for Part 6 of the Act, which remains with the Minister for the Environment. As a result of this change, the Bureau now reports to the Minister for Agriculture and Water Resources on water information matters, including seeking approval for water information legislative and policy changes.

Bureau of Meteorology Additional Estimates Statements

69

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Bureau of Meteorology at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year, including variations through Appropriation Bill No. 3 and No. 4.

Table 1.1: Bureau of Meteorology resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 Actual

available appropriation 2014-15

$'000

Estimate as at Budget 2015-16

$'000

Proposed Additional Estimate 2015-16

$'000

Total

estimate at Additional Estimates 2015-16

$'000

Ordinary annual services (a)

Departmental appropriation

Prior year departmental appropriation (b) 71,129 73,397 - 73,397

Departmental appropriation (c) (e) 262,628 254,462 1,024 255,486

s74 Retained Revenue Receipts (d) 70,409 68,893 9,548 78,441

Total 404,166 396,752 10,572 407,324

Total ordinary annual services [A] 404,166 396,752 10,572 407,324

Departmental non-operating

Equity injections (e) 9,842 40,746 (500) 40,246

Total 9,842 40,746 (500) 40,246

Total other services [B] 9,842 40,746 (500) 40,246

Total available annual appropriations 414,008 437,498 10,072 447,570

Total resourcing [A+B] 414,008 437,498 10,072 447,570

Total net resourcing for Bureau of Meteorology 414,008 437,498 10,072 447,570

(a) Appropriation Act (No. 1) 2015-2016 and Appropriation Bill (No. 3) 2015-2016.

(b) Estimated adjusted balance carried from previous year for annual appropriations.

(c) Includes an amount of $44.047m in 2015-16 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'.

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

(e) Excludes additional estimate funding in relation to the measure 'Bureau of Meteorology - improved data and services supporting supercomputer capability' which is not for publication.

Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Bureau of Meteorology Additional Estimates Statements

70

1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Bureau of Meteorology 2015-16 measures since Budget Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000 2018-19 $'000

Expense measures

Stronger Farmers, Stronger Economy — new drought management framework

Departmental expenses 1 326 324 370 374

Total 326 324 370 374

Bureau of Meteorology — improved data and services supporting supercomputer capability

Departmental expenses 1 nfp nfp - -

Total nfp nfp - -

Total expense measures

Departmental 326 324 370 374

Total 326 324 370 374

Capital measures

Stronger Farmers, Stronger Economy — new drought management framework

Departmental capital 1 651 647 282 285

Total 651 647 282 285

Bureau of Meteorology — improved data and services supporting supercomputer capability

Departmental capital 1 nfp nfp - -

Total nfp nfp - -

Total capital measures

Departmental 651 647 282 285

Total 651 647 282 285

Prepared on a Government Financial Statistics (fiscal) basis.

Bureau of Meteorology Additional Estimates Statements

71

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Bureau of Meteorology at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2015-16 Budget in Appropriation Bill No. 3 and No. 4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme impacted

2015-16 $'000 2016-17 $'000

2017-18 $'000 2018-19 $'000

Outcome 1

Increase in estimates (departmental-capital) Stronger Farmers, Stronger Economy — new drought

management framework 1 977 971 652 659

Bureau of Meteorology — improved data and services supporting supercomputer capability 1 nfp nfp - -

Net impact on estimates for Outcome 1 (departmental-capital) 977 971 652 659

Table 1.4: Additional estimates and variations to outcomes from other variations Programme impacted 2015-16

$'000

2016-17 $'000 2017-18 $'000

2018-19 $'000

Outcome 1

Increase in estimates (departmental)

Movement of Funds 1 - - 490 -

Parameter adjustment 1 - 502 31 2,091

Decrease in estimates (departmental)

Movement of Funds (a) 1 (367) - - (19,194)

Whole of Government Savings — Enterprise Resource Planning Savings 1 - - (250) (307)

Whole of Government Savings — PSSAP Administration Costs 1

(86) (86) (86) (86)

Net impact on estimates for Outcome 1 (departmental) (453) 416 185 (17,496)

(a) Includes a movement of $20.211 million into 2019-20.

Bureau of Meteorology Additional Estimates Statements

72

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Bureau of Meteorology through Appropriation Bill No. 3 and No. 4.

Table 1.5 - Appropriation Bill (No. 3) 2015-16 2014-15

Available $'000

2015-16 Budget $'000

2015-16 Revised $'000

Additional Estimates $'000

Reduced Estimates $'000

Departmental programmes

Outcome 1 - Bureau of Meteorology (a)

262,628 254,462 255,486 1,024 -

Total departmental 262,628 254,462 255,486 1,024 -

(a) Excludes additional estimate funding in relation to the measure 'Bureau of Meteorology — improved data and services supporting supercomputer capability'.

Table 1.6 - Appropriation Bill (No. 4) 2015-16 2014-15

Available $'000

2015-16 Budget $'000

2015-16 Revised $'000

Additional Estimates $'000

Reduced Estimates $'000

Non-operating

Equity injections (a) 9,842 40,746 40,246 - (500)

Total non-operating 9,842 40,746 40,246 - (500)

Total other services 9,842 40,746 40,246 - (500)

(a) Excludes additional estimate funding in relation to the measure 'Bureau of Meteorology — improved data and services supporting supercomputer capability'.

Bureau of Meteorology Additional Estimates Statements

73

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Details of the Bureau of Meteorology's resources and performance information are included in the 2015-16 Environment Portfolio Budget Statements.

OUTCOME 1: INFORMED SAFETY, SECURITY, AND ECONOMIC DECISIONS BY GOVERNMENTS, INDUSTRY, AND THE COMMUNITY THROUGH THE PROVISION OF INFORMATION, FORECASTS, SERVICES AND RESEARCH RELATING TO WEATHER, CLIMATE AND WATER.

Outcome 1 Strategy

There has been no change to the Bureau of Meteorology's Outcome Strategy since the 2015-16 Budget.

Bureau of Meteorology Additional Estimates Statements

74

Table 2.1 Budgeted expenses for Outcome 1 Outcome 1: Informed safety, security and economic decisions by governments, industry, and the community through the provision of information, forecasts, services and research relating to weather, climate and water

2014-15 Actual expenses

$'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Bureau of Meteorology

Departmental expenses

Departmental appropriation (a) 277,440 287,562

Expenses not requiring appropriation in the Budget year (b) 71,171 71,622

Total for Programme 1.1 348,611 359,184

Outcome 1 Totals by appropriation type

Departmental expenses

Departmental appropriation(a) 277,440 287,562

Expenses not requiring appropriation in the Budget year (b) 71,171 71,622

Total expenses for Outcome 1 348,611 359,184

2014-15 2015-16

Average Staffing Level (number) 1,471 1,413

(a) Departmental Appropriation combines "Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)" and "Retained Revenue Receipts under s74 of the PGPA Act 2013".

(b) Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense.

Programme Objective 1.1: Bureau of Meteorology

There has been no change to the Bureau of Meteorology's Programme Objectives since the 2015-16 Budget.

Bureau of Meteorology Additional Estimates Statements

75

Programme expenses 1.1: Bureau of Meteorology

2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Departmental Programme support 277,440 287,562 296,014 247,218 248,042 Expenses not requiring appropriation in the Budget year (a) 71,171 71,622 72,519 72,519 72,519

Total programme expenses 348,611 359,184 368,533 319,737 320,561

(a) Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense.

Programme Deliverables

There has been no change to the Bureau of Meteorology's Programme Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

There has been no change to the Bureau of Meteorology's Programme Key Performance Indicators since the 2015-16 Budget.

Bureau of Meteorology Additional Estimates Statements

76

Section 3: Explanatory tables and budgeted financial statements

3.1 EXPLANATORY TABLES

Estimates of special account flows

The Bureau of Meteorology operates one special account - Services for other entities and Trust Moneys. There are no movements of Commonwealth funds in this account.

Bureau of Meteorology Additional Estimates Statements

77

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

Changes to the Bureau of Meteorology budgeted financial statements since the 2015-16 Portfolio Budget Statements include:

 the funding associated with the measure Stronger Farmers, Stronger Economy - new drought management framework;

 funding associated with the 2015-16 measure Bureau of Meteorology — improved data and services supporting supercomputer capability;

 increased funding associated with cost recoverable projects and services; and

 reduced funding as a result of the 2015-16 measures Whole of Government savings - PSSAP Administration Costs.

Bureau of Meteorology Additional Estimates Statements

78

3.2.2 Budgeted financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June. 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES

Employee benefits 181,966 180,982 185,073 160,509 160,308

Suppliers 91,699 104,831 109,182 84,939 85,949

Depreciation and amortisation 71,171 71,622 72,519 72,519 72,519

Write-down and impairment of assets 1,018 1 1 1 1

Losses from asset sales 170 - - - -

Other expenses 2,587 1,748 1,758 1,769 1,784

Total expenses 348,611 359,184 368,533 319,737 320,561

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 76,900 78,441 70,216 64,432 62,591

Other revenue 807 - - - -

Total own-source revenue 77,707 78,441 70,216 64,432 62,591

Gains

Other 364 - - - -

Total gains 364 - - - -

Total own-source income 78,071 78,441 70,216 64,432 62,591

Net cost of (contribution by) services 270,540 280,743 298,317 255,305 257,970

Revenue from Government 218,077 213,977 228,359 185,347 188,012

Surplus/(deficit) attributable to the Australian Government (52,463) (66,766) (69,958) (69,958) (69,958)

Total comprehensive income/(loss) (52,463) (66,766) (69,958) (69,958) (69,958)

Bureau of Meteorology Additional Estimates Statements

79

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

Note: Impact of net cash appropriation arrangements

2014-15

$'000 2015-16 $'000 2016-17

$'000 2017-18 $'000 2018-19

$'000

Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations 18,708 4,856 2,561 2,561 2,561

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 71,171 71,622 72,519 72,519 72,519

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (52,463) (66,766) (69,958) (69,958) (69,958)

(a) 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 non-corporate Commonwealth entities 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.

Bureau of Meteorology Additional Estimates Statements

80

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS

Financial assets

Cash and cash equivalents 57 57 57 57 57

Trade and other receivables 116,536 107,489 105,312 104,913 105,663

Other financial assets 3,724 3,724 3,724 3,724 3,724

Total financial assets 120,317 111,270 109,093 108,694 109,444

Non-financial assets

Land and buildings 117,706 113,724 109,742 107,060 104,078

Property, plant and equipment 325,491 356,054 358,909 346,572 349,276

Intangibles 65,824 71,930 71,833 72,470 72,702

Inventories 7,634 7,634 7,634 7,634 7,634

Other non-financial assets 6,393 6,393 6,393 6,393 6,393

Total non-financial assets 523,048 555,735 554,511 540,129 540,083

Total assets 643,365 667,005 663,604 648,823 649,527

LIABILITIES

Payables

Suppliers 13,512 13,512 13,512 13,512 13,512

Other payables 51,305 47,115 47,115 47,115 47,115

Total payables 64,817 60,627 60,627 60,627 60,627

Non-Interest Bearing Liabilities

Other non-interest bearing liabilities 1,948 - - - -

Total Non-Interest Bearing Liabilities 1,948 - - - -

Provisions

Employee provisions 66,097 67,600 68,350 69,100 69,850

Other provisions 22,069 22,069 22,069 22,069 22,069

Total provisions 88,166 89,669 90,419 91,169 91,919

Total liabilities 154,931 150,296 151,046 151,796 152,546

Net assets 488,434 516,709 512,558 497,027 496,981

EQUITY*

Parent entity interest

Contributed equity 541,226 629,543 695,350 749,777 819,689

Reserves 243,400 243,398 243,398 243,398 243,398

Retained surplus/(accumulated deficit) (296,192) (356,232) (426,190) (496,148) (566,106) Total parent entity interest 488,434 516,709 512,558 497,027 496,981

Total Equity 488,434 516,709 512,558 497,027 496,981

Prepared on Australian Accounting Standards basis.

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

Bureau of Meteorology Additional Estimates Statements

81

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget Year 2015-16) Retained earnings

$'000

Asset

revaluation reserve $'000

Contributed equity/ capital

$'000

Total equity

$'000

Opening balance as at 1 July 2015

Balance carried forward from previous period (296,192) 243,400 541,226 488,434

Adjusted opening balance (296,192) 243,400 541,226 488,434

Comprehensive income

Surplus/(deficit) for the period (66,766) - - (66,766)

Total comprehensive income (66,766) - - (66,766)

Contributions by owners

Equity Injection - Appropriation - - 50,994 50,994

Departmental Capital Budget (DCB) - - 44,047 44,047

Sub-total transactions with owners - - 95,041 95,041

Estimated closing balance as at 30 June 2016 (362,958) 243,400 636,267 516,709

Closing balance attributable to the Australian Government (362,958) 243,400 636,267 516,709

Bureau of Meteorology Additional Estimates Statements

82

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES

Cash received

Appropriations 295,282 223,024 230,536 185,746 187,262

Sale of goods and rendering of services 102,879 78,441 70,216 64,432 62,591

Net GST received 5,261 8,310 8,310 8,310 8,310

Total cash received 403,422 309,775 309,062 258,488 258,163

Cash used

Employees 192,205 185,617 184,323 159,759 159,558

Suppliers 107,138 106,582 110,943 86,708 87,733

Net GST paid - 4,560 4,560 4,560 4,560

Section 74 receipts transferred to the OPA 99,748 - - - -

Other - (3) (3) - -

Total cash used 399,091 296,756 299,823 251,027 251,851

Net cash from/(used by) operating activities 4,331 13,019 9,239 7,461 6,312

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment 1,374 25 1,225 1,225 1,225

Total cash received 1,374 25 1,225 1,225 1,225

Cash used

Purchase of property, plant, equipment and intangibles 53,453 104,334 72,520 59,362 73,698

Other - 3,751 3,751 3,751 3,751

Total cash used 53,453 108,085 76,271 63,113 77,449

Net cash from/(used by) investing activities (52,079) (108,060) (75,046) (61,888) (76,224)

FINANCING ACTIVITIES

Cash received

Contributed equity 45,852 95,041 65,807 54,427 69,912

Total cash received 45,852 95,041 65,807 54,427 69,912

Net cash from financing activities 45,852 95,041 65,807 54,427 69,912

Net increase/(decrease) in cash held (1,896) - - - -

Cash and cash equivalents at the beginning of the reporting period 1,953 57 57 57 57

Cash and cash equivalents at the end of the reporting period 57 57 57 57 57

Bureau of Meteorology Additional Estimates Statements

83

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

NEW CAPITAL APPROPRIATIONS

Capital budget - Act No. 1 (DCB) 44,551 44,047 42,208 42,471 42,720

Equity injections - Act No. 2 and Bill 4 9,842 50,994 23,599 11,956 27,192

Total new capital appropriations 54,393 95,041 65,807 54,427 69,912

Provided for:

Purchase of non-financial assets 49,975 95,041 65,807 54,427 69,912

Total Items 49,975 95,041 65,807 54,427 69,912

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 3,093 52,306 26,526 13,105 27,192

Funded by capital appropriation - DCB (b) 42,759 47,147 42,208 42,471 42,720 Funded internally from departmental Resources (c) 6,373 4,881 3,786 3,786 3,786

TOTAL AMOUNT SPENT 52,225 104,334 72,520 59,362 73,698

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 52,225 104,334 72,520 59,362 73,698

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 52,225 104,334 72,520 59,362 73,698

(a) Includes both current and prior year Act (No. 3) and Bills 4/6 appropriations and special capital appropriations. (b) Does not include annual finance lease costs. Includes purchases from current and previous years’ Departmental Capital Budgets (DCBs). (c) Includes the following sources of funding:

- current and prior year Act (No.1) and Bills 3/5 appropriations (excluding amounts from the DCB). - internally developed assets - s74 Retained Revenue Receipts - proceeds from the sale of assets

Bureau of Meteorology Additional Estimates Statements

84

Table 3.2.6: Statement of asset movements (2015-16 Budget year) Land

$'000

Buildings

$'000

Other

property, plant and equipment $'000

Computer software and intangibles

$'000

Total

$'000

As at 1 July 2015

Gross book value 16,999 108,605 389,808 159,765 675,177

Accumulated depreciation/amortisation and impairment - (7,898) (64,317) (93,941) (166,156)

Opening net book balance 16,999 100,707 325,491 65,824 509,021

Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation equity(a) - - 49,860 2,446 52,306

By purchase - appropriation ordinary annual services(b) - 70 26,524 20,553 47,147

By purchase - other - 174 4,707 - 4,881

Total additions - 244 81,091 22,999 104,334

Other movements

Depreciation/amortisation expense - (4,226) (50,503) (16,893) (71,622)

Disposals(c) - - (25) - (25)

Total other movements - (4,226) (50,528) (16,893) (71,647)

As at 30 June 2016

Gross book value 16,999 108,849 470,874 182,764 779,486

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

Closing net book balance 16,999 96,725 356,054 71,930 541,708

(a) “Appropriation equity” refers to equity injections appropriations provided through Appropriation Act (No.2) 2015-16 and Bill (No.4) 2015-16, including CDABs. (b) "Appropriation ordinary annual services" refers to funding provided through Appropriation Act (No. 1) 2015-16 and Bill (No. 3) 2015-16 for depreciation/amortisation expenses, DCBs or other operational

expenses. (c) Net Proceeds may be returned to the OPA.

Bureau of Meteorology Additional Estimates Statements

85

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OWN-SOURCE INCOME

Own-source revenue

Non-taxation revenue

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

Total non-taxation revenue - - - - -

Total own-source revenue administered on behalf of Government - - - - -

Total own-source income administered on behalf of Government - - - - -

Total comprehensive income (loss) - - - - -

Prepared on Australian Accounting Standards basis.

Bureau of Meteorology Additional Estimates Statements

86

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) The Schedule of budgeted assets and liabilities administered on behalf of Government does not apply to the Bureau.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES

Cash received

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

Total cash received - - - - -

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

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

Cash and cash equivalents at beginning of reporting period - - - - -

Cash to Official Public Account for:

- Appropriations nfp nfp nfp nfp nfp

Total cash to Official Public Account - - - - -

Cash and cash equivalents at end of reporting period - - - - -

Prepared on Australian Accounting Standards basis.

88

CLEAN ENERGY REGULATOR Section 1: Entity overview and resources ................................................................ 90

1.1 Strategic direction statement.................................................................................. 90

1.2 Entity resource statement ...................................................................................... 91

1.3 Entity Measures ..................................................................................................... 92

1.4 Additional estimates and variations ....................................................................... 93

1.5 Breakdown of additional estimates by appropriation bill ........................................ 94

Section 2: Revisions to outcomes and planned performance ............................... 95

2.1 Outcomes and performance information ................................................................ 95

Section 3: Explanatory tables and budgeted financial statements ....................... 98

3.1 Explanatory tables .................................................................................................. 98

3.2 Budgeted financial statements ............................................................................... 99

90

CLEAN ENERGY REGULATOR

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

Details of the Clean Energy Regulator's Strategic Direction and Programme Structures are contained in the 2015-16 Environment Portfolio Budget Statements.

The adjustment to the Clean Energy Regulator's revenue and expenses, in the forward years, reflects the Government's commitment to provide certainty and growth for the renewable energy industry and respond to community concerns about wind farms.

The Clean Energy Regulator's appropriation is reduced by $2.731 million over the Budget and forward years through Government savings measures, parameter adjustments and efficiency dividends.

Clean Energy Regulator Additional Estimates Statements

91

1.2 ENTITY RESOURCE STATEMENT

The Entity 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 2015-16 Budget year, including variations through Appropriation Bill No. 3 and No. 4, Special Appropriations and Special Accounts.

Table 1.1: Clean Energy Regulator Resource Statement - Additional Estimates for 2015-16 as at Additional Estimates February 2016 Actual

available appropriation 2014-15

$'000

Estimate as at Budget 2015-16

$'000

Proposed Additional Estimate 2015-16

$'000

Total

estimate at Additional Estimates 2015-16

$'000

Ordinary annual services (a)

Departmental appropriation

Prior year departmental appropriation (b) 13,001 13,933 - 13,933

Departmental appropriation (c) 77,847 74,597 (438) 74,159

S74 Retained Revenue Receipts (d) 770 - - -

Total 91,618 88,530 (438) 88,092

Administered expenses

Outcome 1 79,269 303,600 1,078 304,678

Total 79,269 303,600 1,078 304,678

Total ordinary annual services [A] 170,887 392,130 640 392,770

Departmental non-operating

Prior year non-operating appropriations 4,186 814 - 814

Equity injections 4,406 - - -

Total 8,592 814 - 814

Total other services [B] 8,592 814 - 814

Total available annual appropriations 179,479 392,944 640 393,584

Special appropriations

Special appropriations limited by criteria/entitlement

Public Governance, Performance and Accountability Act 2013 - s77 (e) 9,047 100 - 100

Clean Energy Act 2011 s116 308,128 - - -

Clean Energy Act 2011 s132 10,026 - - -

Renewable Energy (Electricity) Act 2000 5 295 - 295

Total special appropriations [C] 327,206 395 - 395

Total resourcing [A+B+C] 506,685 393,339 640 393,979

(a) Appropriation Act (No. 1) 2015-2016 and Appropriation Bill (No. 3) 2015-2016. (b) Estimated adjusted balance carried from previous year for annual appropriations. (c) Includes an amount of $1.185 m in 2015-16 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'.

(d) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability (PGPA) Act 2013. (e) Repayments not provided for under other appropriations.

Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Clean Energy Regulator Additional Estimates Statements

92

1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Clean Energy Regulator 2015-16 measures since Budget Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000 2018-19 $'000

Revenue measures

Renewable Energy Target - amendments 1.1

Administered revenues - - (88) (263)

Total - - (88) (263)

Total revenue measures

Administered - - (88) (263)

Total - - (88) (263)

Expense measures

Renewable Energy Target - amendments 1.1

Departmental expenses - - (104) (245)

Total - - (104) (245)

National Wind Farm Commissioner and Independent Scientific Committee on Wind Turbines - establishment 1.1

Departmental expenses (438) (674) (680) (238)

Total (438) (674) (680) (238)

Total expense measures

Departmental (438) (674) (784) (483)

Total (438) (674) (784) (483)

Prepared on a Government Financial Statistics (fiscal) basis.

Clean Energy Regulator Additional Estimates Statements

93

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 2015-16 Budget in Appropriation Bill No. 3 and No. 4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme impacted

2015-16 $'000 2016-17 $'000

2017-18 $'000 2018-19 $'000

Outcome 1

Decrease in estimates (departmental)

Renewable Energy Target — amendments 1.1 - - (104) (245)

National Wind Farm Commissioner — Establishment 1.1 (438) (674) (680) (238)

Net impact on estimates for Outcome 1 (departmental) (438) (674) (784) (483)

Decrease in estimates (administered)

Renewable Energy Target — amendments 1.1 - - (88) (263)

Net impact on estimates for Outcome 1 (administered) - - (88) (263)

Table 1.4: Additional estimates and variations to outcomes from other variations Programme impacted 2015-16

$'000

2016-17 $'000 2017-18 $'000

2018-19 $'000

Outcome 1

Increase in estimates (administered)

Carbon Pricing Mechanism 1.1 1,078 - - -

Net impact on estimates for Outcome 1 (administered) 1,078 - - -

Decrease in estimates (departmental) 1.1

Public Sector Savings Tranche 1: Enterprise Resource Planning Systems

(63) (78)

Parameter Adjustments - - (69) (139)

Net impact on estimates for Outcome 1 (departmental) - - (132) (217)

Clean Energy Regulator Additional Estimates Statements

94

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Clean Energy Regulator through Appropriation Bill No. 3.

Table 1.5 - Appropriation Bill (No. 3) 2015-16 2014-15

Available $'000

2015-16 Budget $'000

2015-16 Revised $'000

Additional Estimates $'000

Reduced Estimates $'000

Administered items

Outcome 1 - Clean Energy Regulator 79,269 303,600 304,678 1,078 -

Total administered 79,269 303,600 304,678 1,078 -

Departmental programmes

Outcome 1 - Clean Energy Regulator 77,847 74,597 74,159 - (438)

Total departmental

77,847 74,597 74,159 - (438)

Total administered and departmental 157,116 378,197 378,837 1,078 (438)

Clean Energy Regulator Additional Estimates Statements

95

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Details of the Clean Energy Regulator's resources and performance information are included in the 2015-16 Environment Portfolio Budget Statements

OUTCOME 1: CONTRIBUTE TO A REDUCTION IN AUSTRALIA’S NET GREENHOUSE GAS EMISSIONS, INCLUDING THROUGH THE ADMINISTRATION OF MARKET BASED MECHANISMS THAT INCENTIVISE REDUCTION IN EMISSIONS AND THE PROMOTION OF ADDITIONAL RENEWABLE ELECTRICITY GENERATION.

Outcome 1 Strategy

There has been no change to the Clean Energy Regulator's Outcome Strategy since the 2015-16 Portfolio Budget Statements.

Clean Energy Regulator Additional Estimates Statements

96

Table 2.1 Budgeted expenses for Outcome 1 Outcome 1: Contribute to a reduction in Australia’s net greenhouse gas emissions, including through the administration of market based mechanisms that incentivise reduction in emissions and the promotion of additional renewable electricity generation.

2014-15 Actual expenses

$'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Clean Energy Regulator

Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 16,740 303,600 Special appropriations 16,797 2,128

Departmental expenses

Departmental appropriation (a) 76,648 72,974

Expenses not requiring appropriation in the Budget year (b) 154,074 14,649

Total for Programme 1.1 264,259 393,351

Outcome 1 Totals by appropriation type

Administered Expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 16,740 303,600 Special appropriations 16,797 2,128

Departmental expenses

Departmental appropriation (a) 76,648 72,974

Expenses not requiring appropriation in the Budget year (b) 154,074 14,649

Total expenses for Outcome 1 264,259 393,351

2014-15 2015-16

Average Staffing Level (number) 318 324

(a) Departmental Appropriation combines "Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)" and "Retained Revenue Receipts under s74 of the PGPA Act 2013". (b) Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, Makegood Expense, Audit Fees, Impairment of Assets, Adjustment to Accrual

for Carbon Price Revenue and Remission of Penalty Interest.

Programme Objective 1.1: Clean Energy Regulator

There has been no change to the Clean Energy Regulator's Programme Objectives since the 2015-16 Portfolio Budget Statements.

Clean Energy Regulator Additional Estimates Statements

97

Programme expenses 1.1: Clean Energy Regulator

2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Annual administered expenses:

Administered item 16,740 303,600 358,337 420,681 471,800

Special Appropriations:

Renewable Energy (Electricity) Act 2000 - 295 262 291 330

Clean Energy Act 2011 s132 - 1,833 - - -

Clean Energy Act 2011 s116 16,797 - - - -

Annual departmental expenses:

Programme support 76,648 72,974 71,631 71,898 72,589

Expenses not requiring appropriation in the Budget year(a) 154,074 14,649 14,685 8,152 4,789

Total programme expenses 264,259 393,351 444,915 501,022 549,508

(a) Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, Makegood Expense, Audit Fees, Impairment of Assets, Adjustment to Accrual for Carbon Price Revenue and Remission of Penalty Interest.

Programme Deliverables

There has been no change to the Clean Energy Regulator's Programme Deliverables since the 2015-16 Budget.

Programme Key Performance Indicators

There has been no change to the Clean Energy Regulator's Programme Key Performance Indicators since the 2015-16 Budget.

Clean Energy Regulator Additional Estimates Statements

98

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 2015-16 Portfolio Budget Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances Outcome Opening balance $'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing balance $'000

Renewable Energy Special Account (A) 2015-16 1 354 250,000 (250,354) - -

Total special accounts 2014-15 actual 1 63,759 (63,406) - 354

(A) = Administered

Clean Energy Regulator Additional Estimates Statements

99

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

The Clean Energy Regulator is budgeting to incur expenses of $87.6 million in 2015-16.

The Clean Energy Regulator is budgeting for a break-even position in 2015-16 excluding non-appropriated expenses relating to depreciation and amortisation.

3.2.2 Budgeted financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June. 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES

Employee benefits 38,579 39,483 39,118 38,578 38,050

Suppliers 37,172 33,899 32,924 33,731 34,950

Depreciation and amortisation 12,672 14,184 14,220 7,687 4,324

Finance costs 65 57 54 54 54

Write-down and impairment of assets 3,455 - - - -

Total expenses 91,943 87,623 86,316 80,050 77,378

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 50 - - - -

Total own-source revenue 50 - - - -

Gains

Other 438 465 465 465 465

Total gains 438 465 465 465 465

Total own-source income 488 465 465 465 465

Net cost of (contribution by) services

91,455 87,158 85,851 79,585 76,913

Revenue from Government 76,648 72,974 71,631 71,898 72,589

Surplus/(deficit) attributable to the Australian Government (14,807) (14,184) (14,220) (7,687) (4,324)

Total comprehensive income/(loss) (14,807) (14,184) (14,220) (7,687) (4,324)

Clean Energy Regulator Additional Estimates Statements

100

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

Note: Impact of net cash appropriation arrangements 2014-15

$'000 2015-16 $'000 2016-17

$'000 2017-18 $'000 2018-19

$'000

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

(2,134) - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 12,673 14,184 14,220 7,687 4,324

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (14,807) (14,184) (14,220) (7,687) (4,324)

(a) 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 non-corporate Commonwealth entities 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.

Clean Energy Regulator Additional Estimates Statements

101

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS

Financial assets

Cash and cash equivalents 307 307 307 307 307

Trade and other receivables 29,164 25,178 24,086 24,723 25,378

Other financial assets 51 51 51 51 51

Total financial assets 29,522 25,536 24,444 25,081 25,736

Non-financial assets

Land and buildings 4,083 2,181 446 446 446

Property, plant and equipment 1,022 1,380 1,228 1,081 934

Intangibles 27,679 20,538 10,890 4,541 1,562

Other non-financial assets 1,097 1,097 1,097 1,097 1,097

Total non-financial assets 33,881 25,196 13,661 7,165 4,039

Total assets 63,403 50,732 38,105 32,246 29,775

LIABILITIES

Payables

Suppliers 6,687 6,491 6,490 6,490 6,490

Other payables 346 229 - - -

Total payables 7,033 6,720 6,490 6,490 6,490

Provisions

Employee provisions 10,690 11,274 11,858 12,441 13,042

Other provisions 1,789 1,846 1,900 1,954 2,008

Total provisions 12,479 13,120 13,758 14,395 15,050

Total liabilities 19,512 19,840 20,248 20,885 21,540

Net assets 43,891 30,892 17,857 11,361 8,235

EQUITY*

Parent entity interest

Contributed equity 82,540 83,725 84,910 86,101 87,299

Reserves 3,985 3,985 3,985 3,985 3,985

Retained surplus/(accumulated deficit) (42,634) (56,818) (71,038) (78,725) (83,049)

Total parent entity interest 43,891 30,892 17,857 11,361 8,235

Total Equity 43,891 30,892 17,857 11,361 8,235

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

Clean Energy Regulator Additional Estimates Statements

102

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget Year 2015-16) Retained earnings

$'000

Asset

revaluation reserve $'000

Contributed equity/ capital

$'000

Total equity

$'000

Opening balance as at 1 July 2015

Balance carried forward from previous period (42,634) 3,985 82,540 43,891

Adjusted opening balance (42,634) 3,985 82,540 43,891

Comprehensive income

Surplus/(deficit) for the period (14,184) - - (14,184)

Total comprehensive income (14,184) - - (14,184)

Transactions with owners

Contributions by owners

Departmental Capital Budget (DCB) - - 1,185 1,185

Sub-total transactions with owners - - 1,185 1,185

Estimated closing balance as at 30 June 2016 (56,818) 3,985 83,725 30,892

Clean Energy Regulator Additional Estimates Statements

103

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES

Cash received

Appropriations 74,271 72,575 71,151 71,189 71,934

Net GST received 4,441 - - - -

Total cash received 78,712 72,575 71,151 71,189 71,934

Cash used

Employees 38,637 38,899 38,534 37,995 37,449

Suppliers 39,048 33,676 32,617 33,194 34,485

Other 770 - - - -

Total cash used 78,455 72,575 71,151 71,189 71,934

Net cash from/(used by) operating activities 257 - - - -

INVESTING ACTIVITIES

Cash used

Purchase of property, plant, equipment and intangibles 3,651 5,499 2,685 1,191 1,198

Total cash used 3,651 5,499 2,685 1,191 1,198

Net cash from/(used by) investing activities (3,651) (5,499) (2,685) (1,191) (1,198)

FINANCING ACTIVITIES

Cash received

Contributed equity 3,395 5,499 2,685 1,191 1,198

Total cash received 3,395 5,499 2,685 1,191 1,198

Net cash used by financing activities 3,395 5,499 2,685 1,191 1,198

Net increase/(decrease) in cash held 1 - - - -

Cash and cash equivalents at the beginning of the reporting period 306 307 307 307 307

Cash and cash equivalents at the end of the reporting period 307 307 307 307 307

Clean Energy Regulator Additional Estimates Statements

104

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

NEW CAPITAL APPROPRIATIONS

Capital budget - Act No. 1 (DCB) 1,199 1,185 1,185 1,191 1,198

Equity injections - Act No. 2 4,406 - - - -

Total new capital appropriations 5,605 1,185 1,185 1,191 1,198

Provided for:

Purchase of non-financial assets 5,605 1,185 1,185 1,191 1,198

Total Items 5,605 1,185 1,185 1,191 1,198

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 8,592 4,314 1,500 - -

Funded by capital appropriation - (DCB) (b) 1,199 1,185 1,185 1,191 1,198

TOTAL AMOUNT SPENT 9,791 5,499 2,685 1,191 1,198

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 9,791 5,499 2,685 1,191 1,198

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 9,791 5,499 2,685 1,191 1,198

(a) Includes both current and prior year Act (No. 2) and Bills 4/6 appropriations and special capital appropriations. (b) Does not include annual finance lease costs. Includes purchases from current and previous years’ Departmental Capital Budgets (DCB).

Clean Energy Regulator Additional Estimates Statements

105

Table 3.2.6: Statement of asset movements (2015-16 Budget year) Buildings

$'000

Other

property, plant and equipment $'000

Computer software and intangibles

$'000

Total

$'000

As at 1 July 2015

Gross book value 6,658 1,347 63,386 71,391

Accumulated depreciation/amortisation and impairment (2,575) (325) (35,707) (38,607)

Opening net book balance 4,083 1,022 27,679 32,784

Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation equity (a) - 500 4,999 5,499

Total additions - 500 4,999 5,499

Other movements

Depreciation/amortisation expense (1,902) (142) (12,140) (14,184)

Total other movements (1,902) (142) (12,140) (14,184)

As at 30 June 2016

Gross book value 6,658 1,847 68,385 76,890

Accumulated depreciation/amortisation and impairment (4,477) (467) (47,847) (52,791)

Closing net book balance 2,181 1,380 20,538 24,099

(a) “Appropriation equity” refers to equity injections appropriations provided through Appropriation Act (No.2) 2015-16 and Bill (No.4) 2015-16.

Clean Energy Regulator Additional Estimates Statements

106

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Suppliers 3,707 303,895 358,599 420,972 472,130

Subsidies 16,797 - - - -

Write-down and impairment of assets 3,226 - - - -

Other expenses 148,585 1,833 - - -

Total expenses administered on behalf of Government 172,315 305,728 358,599 420,972 472,130

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other taxes 1,720 563 595 637 712

Total taxation revenue 1,720 563 595 637 712

Non-taxation revenue

Fees and fines 14,165 12,265 12,758 13,256 13,880

Other revenue 12,431 - - - -

Total non-taxation revenue 26,596 12,265 12,758 13,256 13,880

Total own-source revenue administered on behalf of Government 28,316 12,828 13,353 13,893 14,592

Gains

Other gains 39,012 - - - -

Total gains administered on behalf of Government 39,012 - - - -

Total own-source income administered on behalf of Government 67,328 12,828 13,353 13,893 14,592

Net cost of/(contribution by) services 104,987 292,900 345,246 407,079 457,538 Total comprehensive income (loss) (104,987) (292,900) (345,246) (407,079) (457,538)

Clean Energy Regulator Additional Estimates Statements

107

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS

Financial assets

Cash and cash equivalents 416 416 416 416 416

Taxation receivables 213 213 213 213 213

Trade and other receivables 77 77 77 77 77

Total financial assets 706 706 706 706 706

Total assets administered on behalf of Government 706 706 706 706 706

LIABILITIES

Payables

Suppliers 11,031 11,031 11,031 11,031 11,031

Other payables 3,208 - - - -

Total payables 14,239 11,031 11,031 11,031 11,031

Total liabilities administered on behalf of Government 14,239 11,031 11,031 11,031 11,031

Net assets/(liabilities) (13,533) (10,325) (10,325) (10,325) (10,325)

Clean Energy Regulator Additional Estimates Statements

108

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) 2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES

Cash received

Fees 17,462 12,265 12,758 13,256 13,880

Net GST received 7 - - - -

Carbon price and other receipts 1,641,562 563 595 637 712

Total cash received 1,659,031 12,828 13,353 13,893 14,592

Cash used

Subsidies paid 309,206 1,078 - - -

Suppliers 11,565 303,895 358,599 420,972 472,130

Other 363 3,963 - - -

Total cash used 321,134 308,936 358,599 420,972 472,130

Net cash from/(used by) operating activities 1,337,897 (321,764) (345,246) (407,079) (457,538)

Net increase/(decrease) in cash held 1,337,897 (321,764) (345,246) (407,079) (457,538) Cash and cash equivalents at beginning of reporting period 1,012 416 416 416 416

Cash from Official Public Account for:

- Appropriations 333,837 308,936 358,599 420,972 472,130

Total cash from Official Public Account 333,837 308,936 358,599 420,972 472,130

Cash to Official Public Account for:

- Appropriations (1,672,330) (12,828) (13,353) (13,893) (14,592)

Total cash to Official Public Account (1,672,330) (12,828) (13,353) (13,893) (14,592) Cash and cash equivalents at end of reporting period 416 416 416 416 416

110

SYDNEY HARBOUR FEDERATION TRUST Section 1: Entity overview and resources .............................................................. 112

1.1 Strategic direction statement................................................................................ 112

1.2 Entity resource statement .................................................................................... 113

1.3 Entity Measures ................................................................................................... 114

1.4 Additional estimates and variations ..................................................................... 115

1.5 Breakdown of additional estimates by appropriation bill ...................................... 116

Section 2: Revisions to outcomes and planned performance ............................. 117

2.1 Outcomes and performance information .............................................................. 117

Section 3: Explanatory tables and budgeted financial statements ..................... 120

3.1 Explanatory tables ................................................................................................ 120

3.2 Budgeted financial statements ............................................................................. 121

112

SYDNEY HARBOUR FEDERATION TRUST

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Sydney Harbour Federation Trust manages some of Sydney’s most renowned and prominent foreshore lands on Sydney Harbour. These sites are the former Defence lands at Middle Head-Georges Heights and Chowder Bay in Mosman, the North Head former School of Artillery, Macquarie Light station near South Head, Woolwich Dock and Parklands, Cockatoo and Snapper Islands, the former Marine Biological Station at Watsons Bay and the former HMAS Platypus at Neutral Bay.

The Trust is adapting and reusing heritage buildings to bring life and activity to these harbour foreshores and, at the same time, generating revenue for operating and maintaining the sites. Its overarching objective is to transform its sites into precincts and parklands that will enhance the cultural and historical values of the city, while conserving the environmental integrity and unique heritage of the sites.

The Trust’s goals for 2015-16 and the forward estimates are to continue to focus on the sustainability of our precincts to ensure we leave them preserved for future generations. The Trust will also focus attention and resources on greater community engagement, enhancing the visitor and tenant experience and encouraging public use, understanding and enjoyment of Trust sites.

With the completion of the decontamination works at HMAS Platypus, Neutral Bay, the Trust will commence plans for partial opening of the site to the public. The Trust will prepare a more detailed plan for the rehabilitation and adaptive re-use of the site post decontamination. The rehabilitation works for the site will commence in 2015-16 as a result of funds provided to the Trust at Additional Estimates 2015-16.

Sydney Harbour Federation Trust Additional Estimates Statements

113

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Sydney Harbour Federation Trust at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year, including variations through Appropriation Bill No. 4.

Table 1.1: Sydney Harbour Federation Trust resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016

Actual available appropriation 2014-15

$'000

Estimate as at Budget 2015-16

$'000

Proposed Additional Estimates 2015-16

$'000

Total

estimate at Additional Estimates 2015-16

$'000

Opening balance/Reserves at bank 50,383 38,044 3,867 41,911

REVENUE FROM GOVERNMENT

Payments from related entities (a)

Amounts from the portfolio department - - 20,000 20,000

Total funds from Government - - 20,000 20,000

FUNDS FROM INDUSTRY SOURCES

FUNDS FROM OTHER SOURCES

Interest 105 260 (33) 227

Sale of goods and services 3,087 3,457 (116) 3,341

Other 14,450 12,990 (205) 12,785

Total 17,642 16,707 (354) 16,353

Total net resourcing for agency 68,025 54,751 23,513 78,264

(a) Funding provided by the Department of the Environment to the Sydney Harbour Federation Trust for remediation works at HMAS Platypus.

Reader note: All figures are GST exclusive.

Sydney Harbour Federation Trust Additional Estimates Statements

114

1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Sydney Harbour Federation Trust 2015-16 measures since Budget

Programme 2015-16 $'000 2016-17 $'000

2017-18 $'000 2018-19 $'000

Capital measures

HMAS Platypus Remediation 1.1

Departmental capital (a)

20,000 - - -

Total

20,000 - - -

Total capital measures

Departmental

20,000 - - -

Total 20,000 - - -

Prepared on a Government Financial Statistics (fiscal) basis.

(a) The full measure description and package details appear in Mid-Year Economic and Fiscal Outlook under the Environment Portfolio.

Sydney Harbour Federation Trust Additional Estimates Statements

115

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following table details the changes to the resourcing for the Sydney Harbour Federation Trust at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2015-16 Budget in Appropriation Bill No. 4.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme

impacted 2015-16 $'000 2016-17

$'000

2017-18 $'000 2018-19 $'000

Outcome 1

Increase in estimates (departmental)

HMAS Platypus Remediation 1.1 20,000 - - -

Net impact on estimates for Outcome 1 (departmental)

20,000 - - -

Sydney Harbour Federation Trust Additional Estimates Statements

116

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following table details the Additional Estimates sought for the Sydney Harbour Federation Trust through Appropriation Bill No. 4.

Table 1.6: Appropriation Bill (No. 4) 2015-16

2014-15 Available $'000

2015-16 Budget $'000

2015-16 Revised $'000

Additional Estimates $'000

Reduced Estimates $'000

Non-operating

Equity injections - - 20,000 20,000 -

Total non-operating - - 20,000 20,000 -

Total other services - - 20,000 20,000 -

Sydney Harbour Federation Trust Additional Estimates Statements

117

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Full details of the Sydney Harbour Trust’s resources and performance information are outlined in the 2015-16 Portfolio Budget Statements.

OUTCOME 1: ENHANCE 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.

Outcome 1 Strategy

The following Strategy is an update to that outlined in the 2015-16 Portfolio Budget Statements.

Over the forward estimates the Sydney Harbour Federation Trust will continue to focus on greater community engagement and enhancing the visitor experience on Trust sites. During this period the Trust will encourage public use, understanding and enjoyment of its sites through its interpretation projects, public programmes and enhanced visitor services and facilities. The Government has provided funding in the Additional Estimates 2015-16 to create an urban parkland at the old HMAS Platypus site in Sydney. The major decontamination stage of the works at HMAS Platypus is near completion. The Trust will complete the Management Plan for HMAS Platypus site in consultation with the community. Once the plan is endorsed the remediation works will commence.

Sydney Harbour Federation Trust Additional Estimates Statements

118

Table 2.1 Budgeted expenses for Outcome 1 Outcome 1: Enhance 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

2014-15 Actual expenses

$'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Sydney Harbour Federation Trust

Revenues from other independent sources 17,662 16,869

Total for Programme 1.1 17,662 16,869

Outcome 1 Totals by resource type

Revenues from other independent sources 17,662 16,869

Total expenses for Outcome 1 17,662 16,869

2014-15 2015-16

Average Staffing Level (number) 63 62

Sydney Harbour Federation Trust Additional Estimates Statements

119

Programme Objective 1.1

There has been no change to the Sydney Harbour Federation Trust’s Programme Objectives since the 2015-16 Budget.

Programme expenses 1.1: Sydney Harbour Federation Trust

2014-15

Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Programme support 17,662 16,869 17,825 18,911 19,466

Total programme expenses 17,662 16,869 17,825 18,911 19,466

Programme Deliverables

The following is an update to the Sydney Harbour Federation Trust’s Deliverables outlined in the 2015-16 Portfolio Budget Statements.

Deliverables 2014-15

Actual

2015-16 Revised budget

2016-17 Forward year 1

2017-18 Forward year 2

2018-19 Forward year 3

Capital spend on rehabilitation and conservation of sites ($m) 1 17 1 1 1

Capital spend on increasing amenity and services on sites ($m) 1.7 5 1 1 1

Spend on heritage and cultural interpretation ($m)

1 1 1 1 1

Programme Key Performance Indicators

There has been no change to the Sydney Harbour Federation Trust's Programme Key Performance Indicators since the 2015-16 Budget.

Sydney Harbour Federation Trust Additional Estimates Statements

120

Section 3: Explanatory tables and budgeted financial statements

3.1 EXPLANATORY TABLES

Estimates of special account flows

There are no special accounts for the Trust.

Sydney Harbour Federation Trust Additional Estimates Statements

121

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

Comprehensive Income Statement

The Trust has budgeted for a small operating surplus of $0.239 million in 2015-16.

Operating surpluses are maintained in forward years with an increasing trend in profitability as new income streams are realised. The Trust has received no operating funding from the Government since 2009-10. The majority of the Trust’s income comes from leasing its rehabilitated heritage buildings. Property leasing revenue remains steady in 2015-16 with growth picking up in the out-years as new leasing opportunities are made available through the remaining capital works programme and renewal reserves. Resources will be focused on the continued preservation and conservation of our aging assets and improved tenant and visitor experiences.

Balance Sheet

The Trust’s major assets are its lands and buildings, which it holds on behalf of the Commonwealth. In 2015-16 the value of the Trust’s non-financial assets will increase by $20 million as a result of an equity injection provided at Additional Estimates towards the rehabilitation of HMAS Platypus as an urban parkland.

Cash Flow

The Trust received a $20 million capital injection at Additional Estimates which has been reflected as a financing activity receipt and a corresponding purchase of land, building and infrastructure improvements.

Sydney Harbour Federation Trust Additional Estimates Statements

122

3.2.2 Budgeted financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June.

2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES

Employee benefits 6,796 6,592 6,798 7,009 7,255

Suppliers 8,669 7,833 8,523 9,349 9,597

Depreciation and amortisation 2,158 2,414 2,484 2,533 2,594

Write-down and impairment of assets 39 30 20 20 20

Total expenses 17,662 16,869 17,825 18,911 19,466

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 2,823 2,036 2,079 2,131 2,183

Interest 1,540 1,107 1,140 1,178 1,205

Rental income 12,097 12,225 12,937 14,510 15,233

Other 1,334 1,740 1,723 1,401 1,403

Total own-source revenue 17,794 17,108 17,879 19,220 20,024

Total own-source income 17,794 17,108 17,879 19,220 20,024

Net cost of (contribution by) services (132) (239) (54) (309) (558)

Surplus/(Deficit) attributable to the Australian Government 132 239 54 309 558

Total comprehensive income/(loss) attributable to the Australian Government 132 239 54 309 558

Sydney Harbour Federation Trust Additional Estimates Statements

123

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS

Financial assets

Cash and cash equivalents 3,282 1,095 1,273 1,118 1,091

Trade and other receivables 1,079 951 842 801 771

Other investments 38,629 35,729 35,129 35,029 35,429

Total financial assets 42,990 37,775 37,244 36,948 37,291

Non-financial assets

Land and buildings 274,705 290,797 291,081 291,437 291,328

Property, plant and equipment 29,103 33,406 33,182 32,894 32,642

Heritage & Cultural assets 25,447 25,946 26,446 26,946 27,371

Intangibles 243 247 215 126 80

Inventories 110 80 110 80 110

Other non-financial assets 179 213 201 188 176

Total non-financial assets 329,787 350,689 351,235 351,671 351,707

Total assets 372,777 388,464 388,479 388,619 388,998

LIABILITIES

Payables

Suppliers 133 725 775 790 795

Other payables 4,585 3,148 2,964 2,779 2,595

Total payables 4,718 3,873 3,739 3,569 3,390

Provisions

Employee provisions 1,629 1,807 1,903 1,903 1,903

Other provisions 3,885

Total provisions 5,514 1,807 1,903 1,903 1,903

Total liabilities 10,232 5,680 5,642 5,472 5,293

Net assets 362,545 382,784 382,837 383,147 383,705

EQUITY*

Parent entity interest

Contributed equity 257,735 277,735 277,735 277,735 277,735

Reserves 98,409 98,410 98,410 98,410 98,410

Retained surplus/(accumulated deficit) 6,401 6,639 6,692 7,002 7,560

Total parent entity interest 362,545 382,784 382,837 383,147 383,705

Total Equity 362,545 382,784 382,837 383,147 383,705

Prepared on Australian Accounting Standards basis

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

Sydney Harbour Federation Trust Additional Estimates Statements

124

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget Year 2015-16)

Retained earnings

$'000

Asset

revaluation reserve $'000

Other reserves

$'000

Contributed equity/ capital $'000

Total equity

$'000

Opening balance as at 1 July 2015

Balance carried forward from previous period 6,401 90,171 8,238 257,735 362,545

Adjustment for changes in accounting policies (1) 1 - - -

Adjusted opening balance 6,400 90,172 8,238 257,735 362,545

Comprehensive income

Other comprehensive income

-

Surplus/(deficit) for the period 239 - - - 239

Total comprehensive income 239 - - - 239

Transactions with owners

Contributions by owners

Equity Injection - Appropriation - - - 20,000 20,000

Sub-total transactions with owners - - - 20,000 20,000

Estimated closing balance as at 30 June 2016 6,639 90,172 8,238 277,735 382,784

Closing balance attributable to the Australian Government 6,639 90,172 8,238 277,735 382,784

Prepared on Australian Accounting Standards basis

Sydney Harbour Federation Trust Additional Estimates Statements

125

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES

Cash received

Sale of goods and rendering of services 3,087 3,341 3,376 3,492 3,545

Interest 105 227 260 260 260

Net GST received - 20 15 10 -

Other 14,450 12,765 13,457 14,580 15,303

Total cash received 17,642 16,353 17,108 18,342 19,108

Cash used

Employees 6,749 6,529 6,703 7,009 7,255

Suppliers 9,604 8,591 8,677 9,537 9,796

Net GST paid 1,010

Total cash used 17,363 15,120 15,380 16,546 17,051

Net cash from/(used by) operating activities 279 1,233 1,728 1,796 2,057

INVESTING ACTIVITIES

Cash received

Investments 90,217 72,937 71,480 71,518 70,545

Total cash received 90,217 72,937 71,480 71,518 70,545

Cash used

Purchase of property, plant, equipment and intangibles 10,186 27,155 3,030 2,970 2,630

Investments 79,438 69,200 70,000 70,500 70,000

Total cash used 89,624 96,355 73,030 73,470 72,630

Net cash from/(used by) investing activities 593 (23,418) (1,550) (1,952) (2,085)

FINANCING ACTIVITIES

Cash received

Contributed equity - 20,000 - - -

Total cash received - 20,000 - - -

Net cash from financing activities - 20,000 - - -

Net increase/(decrease) in cash held 872 (2,185) 178 (156) (28)

Cash and cash equivalents at the beginning of the reporting period 2,410 3,280 1,095 1,273 1,117

Cash and cash equivalents at the end of the reporting period 3,282 1,095 1,273 1,117 1,089

Prepared on Australian Accounting Standards basis.

Sydney Harbour Federation Trust Additional Estimates Statements

126

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June)

2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

NEW CAPITAL APPROPRIATIONS

Equity injections - Bill No. 4 - 20,000 - - -

Total new capital appropriations - 20,000 - - -

Provided for:

Purchase of non-financial assets - 20,000 - - -

Total Items - 20,000 - - -

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) - 20,000 - - -

Funded internally from departmental Resources (b) 4,549 3,311 3,030 2,970 2,630

TOTAL AMOUNT SPENT 4,549 23,311 3,030 2,970 2,630

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 4,549 23,311 3,030 2,970 2,630

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 4,549 23,311 3,030 2,970 2,630

Prepared on Australian Accounting Standards basis.

(a) Includes current year Bill (No. 4) appropriations. (b) Includes the following sources of funding: - donations and contributions; - gifts;

- internally developed assets; - s74 Retained revenue receipts; - proceeds from the sale of assets.

Sydney Harbour Federation Trust Additional Estimates Statements

127

Table 3.2.6: Statement of asset movements (2015-16 Budget year)

Land

$'000

Buildings

$'000

Other

property, plant and equipment $'000

Heritage and cultural

$'000

Computer software and intangibles

$'000

Total

$'000

As at 1 July 2015

Gross book value 196,708 77,997 31,636 25,447 533 332,321

Accumulated depreciation/amortisation and impairment - - (2,532) - (290) (2,822)

Opening net book balance 196,708 77,997 29,104 25,447 243 329,499

Capital asset additions

Estimated expenditure on new or replacement assets By purchase - appropriation equity(a) 481 15,337 4,182 - - 20,000

By purchase - other 300 1,350 1,061 499 101 3,311

Total additions 781 16,687 5,243 499 101 23,311

Other movements

Depreciation/amortisation expense

(1,376) (941)

(97) (2,414)

Total other movements - (1,376) (941) - (97) (2,414)

As at 30 June 2016

Gross book value 197,489 94,684 36,879 25,946 634 355,632

Accumulated depreciation/amortisation and impairment - (1,376) (3,473) - (387) (5,236)

Closing net book balance 197,489 93,308 33,406 25,946 247 350,396

(a) “Appropriation equity” refers to equity injections appropriations provided through Appropriation Act (No.2) 2015-16 and Bill (No.4) 2015-16, including CDABs.