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Civil Aviation Safety Authority—Corporate plans—2021-22—Replacement plan


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CORPORATE PLAN 2021-2022

2   Civil Aviation Safety Authority Corporate Plan 2021-2022 Civil Aviation Safety Authority Corporate Plan 2021-2022   3

About this Plan The Corporate Plan presents the Civil Aviation Safety Authority’s (CASA) direction for the period 2021-22 to 2024-25. It is designed as the principal planning and operational document outlining the purposes of CASA and the strategies to be implemented to achieve our objectives. The Plan details how CASA will meet the aviation safety expectations of the Australian Government and the Australian public. The Plan positions CASA to contribute to the effective and efficient management of aviation safety risks and to improve relationships with the wider aviation community within a strong governance framework.

Key terms used in this Plan

Term Meaning

Goals CASA’s strategic aims

Key performance areas (KPAs) Specific areas CASA will report against using the performance measures

Key performance indicators (KPIs) Indicators applied to CASA’s performance which will be measured against the KPAs to determine success in terms of meeting CASA’s goals

Strategies and plans Specific activities expected to take place during the period of the Corporate Plan

Performance measures Clear, unambiguous measures, including both qualitative and quantitative measures (where possible), against which the progress of each initiative will be tracked and reported

Wider aviation community Government, commercial, industrial, consumer and other relevant bodies and organisations, including the International Civil Aviation Organization (ICAO) and bodies representing the aviation industry

ISSN: 1328-5521

ISBN: 978-1-921475-86-3

© Commonwealth of Australia 2021

Creative Comms licence

With the exception of the Coat of Arms and all photos and graphics, this publication is licensed under a Creative Commons Attribution 4.0 International Licence. The Creative Commons Attribution 4.0 International Licence is a standard form licence agreement that allows you to copy, distribute, transmit and adapt this publication provided that you attribute the work. The full licence terms are available from: www.creativecommons.org/licenses/by/4.0/.

The Civil Aviation Safety Authority asserts the right to be recognised as the author of the original material in the following manner:

The document must be attributed as the Civil Aviation Safety Authority Corporate Plan 2021-22 to 2024-25.

Requests and enquiries should be directed to: Section Manager, Government and Parliamentary Services Civil Aviation Safety Authority GPO Box 2005, Canberra ACT 2601 AUSTRALIA

LETTER TO THE MINISTER

CHAIR - CASA BOARD CASA Ref: D20/489185

25 June 2021

The Hon Barnaby Joyce MP Deputy Prime Minister Minister for Infrastructure, Transport and Regional Development Parliament House CANBERRA ACT 2600

Dear Deputy Prime Minister

Civil Aviation Safety Authority’s Corporate Plan 2021-22

On behalf of the Board, I am pleased to provide the Civil Aviation Safety Authority’s Corporate Plan for the period 2021-22 to 2024-25 for your approval.

The Plan incorporates the Minister’s direction under section 12A of the Civil Aviation Act 1988; and has been prepared under the requirements of Subsection 35(1) of the Public Governance, Performance and Accountability (PGPA) Act 2013 and Section 44 of the Civil Aviation Act 1988.

Yours sincerely

Anthony Mathews Chair CASA Board

cc Simon Atkinson, Secretary, Department of Infrastructure, Transport, Regional Development and Communications

2102.4191

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CONTENTS

Letter to the Minister 3

Introduction 5

Chair’s Foreword 2021-22 6

Director’s Preface 7

Our Purpose and Role 9

CASA’s Strategic Approach 16

Financial Environment 16

Operating Environment 19

Risk Oversight and Management 23

Regulatory Performance Guide 25

Key Performance Areas 26

INTRODUCTION As the Chair of the Board of the Civil Aviation Safety Authority (CASA), I present the 2021-22 to 2024-25 CASA Corporate Plan (the Plan) for the reporting period 2021-22, as required under subsection 35(1) of the Public Governance, Performance and Accountability 2013 (PGPA Act) and section 44 of the Civil Aviation Act 1988. The Plan incorporates the Minister’s Direction issued under section 12A of the Civil Aviation Act 1988. The Plan is also prepared in accordance with the Public Governance, Performance and Accountability Rule 2014.

Anthony Mathews Chair CASA Board

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CHAIR’S FOREWORD 2021-22

The 2021-22 Corporate Plan sets out how CASA will achieve the core objective of the Civil Aviation Act 1988 - maintaining, enhancing and promoting the safety of civil aviation, with particular emphasis on preventing aviation accidents and incidents.

The COVID-19 pandemic has had a serious adverse effect on sectors of the aviation community and CASA has a key role to play to support its recovery. Many people have been affected directly by this pandemic; for some it is personal tragedy through the loss of friends or relatives, for many it is the profound impact on business and livelihoods. CASA is committed to assisting people and businesses in the aviation community to recover from the devastating impact of the COVID-19 crisis. We are actively working with the aviation community to provide solutions and reduce the regulatory impact where possible.

One of the challenges of the COVID-19 crisis is the fact that there will be no defining moment when it disappears and has been dealt with. While we manage domestic aviation in an Australian environment that has been largely successful in containing the growth of coronavirus cases, international travel has been decimated and the flow on effect has similarly impacted the recovery of our domestic sectors.

Yet as 2022 approaches, the world is planning for the year ahead - and the years beyond. As governments begin to relax restrictions and stimulate economic growth, the recovery phase commences. On the surface, this phase includes progressively returning domestic and international travel numbers to levels we are more familiar with. Economic momentum is beginning to accelerate domestically while we continue to monitor and hope the international landscape will mirror Australia’s own domestic growth. Our regulatory priorities respond to the needs of both the domestic and international environments and are informed and influenced by activity across the global regulatory landscape.

In the coming years, CASA will continue our regulatory efforts to achieve the goals and objectives set out in our Corporate Plan. The Plan includes an assessment of the challenges and risks not only brought about by the COVID-19 crisis, but a range of other factors likely to affect aviation safety in the coming period.

Regardless of what the future brings, we remain focused on ensuring Australia’s enviable aviation safety record is maintained.

Anthony Mathews Chair of the CASA Board

DIRECTOR’S PREFACE

This Corporate Plan is my first as CASA’s new Chief Executive Officer and Director of Aviation Safety since taking up my appointment on 17 May 2021.

I have worked alongside CASA for many years, and I understand the past year in particular has placed significant pressures on the aviation industry due to the impact of the COVID-19 pandemic. Much of the industry has suffered through these challenging times but operations have continued without compromising aviation safety. CASA not only took the view to support the industry through direct relief from regulatory requirements but also adapted and improved the way our business was conducted through centralising the majority of our services and applying a different approach to surveillance.

Improvements to digital services were also made to the myCASA portal to assist industry in submitting applications and renewals online for Remotely Piloted Aircraft Systems transactions. It also gave industry the ability to view a digital version of their licence.

These improvements have been focused on making it easier for industry to interact with CASA and allowed us to holistically

support industry. This will stand us in good stead beyond the COVID-19 pandemic to further drive continuous improvement in the organisation.

A key focus for this year will be to continue to support a smooth industry transition to the Flight Operations Regulations, coming into effect on 2 December 2021. We have been working with industry to finalise the Manual of Standards and published a number of Plain English Guides. We will continue to finalise other guidance material this year and work closely with industry in the lead up to 2 December 2021.

We will fully embed the national functionally based oversight operating model that has been under development over the past couple of years, to improve consistency and standardisation in guidance, regulatory services and surveillance.

To complement our national operating model, we will continue to integrate the European Aviation Processing (EAP) system, a comprehensive aviation information management tool, into our business as the primary source of information for use in regulatory oversight.

We will continue to focus on the safe introduction of new and emerging technologies, to ensure piloted and pilotless aircraft can operate safely in our airspace.

We will continue to adhere to our values, code of conduct and regulatory philosophy when conducting our business and interacting with others. We are committed to providing ongoing support for Australia’s aviation industry to help them get back on their feet while maintaining high standards of aviation safety to ensure ‘Safe skies for all’.

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I would like to thank CASA staff and industry for their resilience over the past year and I hope the coming year brings us back to a more normal level and way of operation. I look forward to leading CASA through the next five years and contributing to the maintenance of Australia’s strong aviation safety record.

Pip Spence PSM Chief Executive Officer and Director of Aviation Safety

OUR PURPOSE AND ROLE The Civil Aviation Safety Authority (CASA) is an independent statutory authority established in 1995 under the Civil Aviation Act 1988 (the Act).

The main objective of this Act is to establish a regulatory framework for maintaining, enhancing and promoting the safety of civil aviation, with particular emphasis on preventing aviation accidents and incidents.

In accordance with the Act and the regulations, CASA’s key function is to conduct the safety regulation of civil air operations in Australian territory and the operation of Australian aircraft outside Australian territory.

CASA also has responsibility for classifying Australian-administered airspace and determining the services and facilities provided by approved air navigation service providers, having regard to the efficient use of, and equitable access to, Australian-administered airspace.

In performing its functions and exercising its powers, CASA must take into account the economic and cost impact of the standards it sets, the differing risks associated with different aviation industry sectors and, to the extent practicable, the environmental effects of the operation and use of aircraft on the environment. In all cases, the safety of air navigation must be CASA’s most important consideration.

While safety regulation of civil aviation remains its primary function, CASA also provides safety-focused education and training programs.

CASA’s Corporate Plan details the activities and initiatives to be undertaken to meet these expectations.

As set out in the Minister’s Statement of Expectations (SOE), CASA’s strategic direction and the manner in which CASA will perform its functions are calculated to enable CASA to continue its regulatory approach. This is in accordance with its regulatory philosophy, with:

• a focus on the safety of air navigation as the highest priority;

• consideration of the economic and cost impacts on individuals, businesses and the community;

• a pragmatic, practical and proportionate approach to regulation as it applies to different industry sectors; and

• performance of its functions consistent with Australia’s international obligations where appropriate, including the requirements of the International Civil Aviation Organization (ICAO).

CASA, the Australian Transport Safety Bureau, the Department of Infrastructure, Transport, Regional Development and Communications, Airservices Australia and the Department of Defence constitute key components of Australia’s aviation safety framework, each with distinctive functions, but working together as parts of an integrated system.

In keeping with CASA’s fundamental obligations as an independent statutory authority, it actively endeavours to ensure that its decision-making and other actions are lawful, fair, reasonable and consistent, and in all cases contribute to optimal safety outcomes, while not unnecessarily impeding the efficient operation of entities that CASA regulates.

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Minister’s Statement of Expectations

1. Overview

This instrument is the Statement of Expectations for the Board of the Civil Aviation Safety Authority for the period 1 July 2021 to 30 June 2023.

This Statement of Expectations (SOE) applies in respect of the period commencing 1 July 2021 and ending 30 June 2023, and replaces the previous SOE issued on 4 July 2019.

This SOE serves as a notice to the Board of the Civil Aviation Safety Authority (CASA) under section 12A of the Civil Aviation Act 1988 (the Act) and formalises my expectations concerning the operations and performance of CASA.

CASA should perform its functions in accordance with the Act, the Airspace Act 2007 and the Public Governance, Performance and Accountability Act 2013 (PGPA Act) as well as other relevant legislation.

I reiterate the Government’s expectation that CASA’s resources be used in an efficient, effective, economical and ethical way, following best practice principles and guidelines.

I also expect that the conduct and values of CASA’s Board and staff should be consistent with that of the Australian Public Service.

2. Governance

I expect that the Board and the Director of Aviation Safety (DAS) will continue to work to enable the effective operation of CASA as the national aviation safety regulator.

I expect the Board to be responsible for the matters set out in the Act, including in particular, CASA’s strategic direction, risk management and corporate planning.

I also expect the Board to facilitate effective interaction between CASA and all stakeholders.

Subject to the Act, I expect the DAS, as the CEO of CASA, to be responsible for managing the operations of CASA, its organisational capacity, and the performance of its statutory functions. This includes the development and implementation of effective and efficient regulation, executive-decision making, and all day-to-day operational, financial, personnel and administrative activities.

I expect the Board to keep the Secretary of the Department of Infrastructure, Transport, Regional Development and Communications (Department) and myself fully informed of CASA’s actions in relation to the requirements stated in this SOE, and promptly advise of any events or issues that may materially impact on the operations of CASA, including through quarterly progress reports from the Board against the Corporate Plan and this SOE.

I expect CASA to perform its functions consistent with Australia’s international obligations where appropriate, including the requirements of the International Civil Aviation Organization (ICAO).

3. Regulatory Approach

I expect CASA will continue its regulatory approach, in accordance with its regulatory philosophy, with:

(a) a focus on the safety of air navigation as the highest priority;

(b) consideration of the economic and cost impacts on individuals, businesses and the community; and

(c) a pragmatic, practical and proportionate approach to regulation as it applies to different industry sectors.

4. Key Initiatives

I expect CASA, in conducting its responsibilities as the aviation safety regulator, will focus on the following key initiatives:

(a) continue effective engagement with industry in the lead up to the implementation of the flight operations suite of regulations.

(b) support Airservices Australia (Airservices) and the Department of Defence (Defence) in the implementation of the OneSKY project through timely approval and certification, in addition to the continuing regulatory oversight of Australia’s existing air traffic management system.

(c) work closely with the Department and Airservices to ensure the integration of Remotely Piloted Aircraft Systems (RPAS) into Australian airspace, including regulatory oversight of the safety aspects of unmanned aviation operations. This includes supporting the development and progression of initiatives outlined in the National Emerging Aviation Technologies (NEAT) Policy Statement.

(d) support Airservices in its development and implementation of a new Flight Information Management System (FIMS) to underpin Australia’s Unmanned Traffic Management (UTM) ecosystem, through timely regulatory review.

(e) provide regulatory oversight for major aerodrome infrastructure projects, including significant new runway projects, as well as providing authoritative and timely advice to me and the Department on matters related to leased federal airport developments.

(f) ensure sufficient resources are applied to the regulatory oversight of the development of Western Sydney Airport and associated airspace in order to support the safe and on-time delivery of regulatory decisions required for the project.

(g) continue to share safety information consistent with the Safety Information Policy Statement agreed with the Australian Transport Safety Bureau (ATSB).

(h) work collaboratively with the Department and Airservices on modernising airspace management, including, as the regulator, leading the development of an Australian future airspace framework consistent with the Government’s airspace policy objectives, and shaping Australia’s future airspace policy and regulatory framework.

(i) work collaboratively with Geoscience Australia and Airservices to help ensure CASA’s regulatory oversight enables safe and timely implementation of satellite-based augmentation systems in the aviation environment.

(j) work collaboratively with the Australian Space Agency to facilitate the advancement of Australia’s space policies and industry through timely decision-making and the provision of advice.

(k) continue to ensure CASA’s training and recruitment strategies provide the organisation with the skills and expertise to meet the current and emerging challenges in aviation safety regulation.

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5. Stakeholder Engagement

I expect CASA will continue to:

(a) undertake effective and appropriate engagement with Government, commercial, industrial, consumer and other relevant stakeholders and bodies, recognising the various sectors that encapsulate the aviation industry, and undertake effective and ongoing engagement with those various sectors.

(b) communicate clearly and regularly with relevant Government agencies, industry and other key stakeholders regarding CASA’s activities and functions.

(c) work closely with the Department and other Government agencies, including the ATSB, Airservices and Defence, to deliver integrated and comprehensive safety advice to the Government, the aviation industry and the community.

The SOE is a legislative instrument and is available on the Federal Register of Legislation at: legislation.gov.au

Portfolio Budget Statements (PBS) 2021-22 CASA is responsible for a single portfolio outcome outlined in the Infrastructure, Transport, Regional Development and Communications Portfolio - Portfolio Budget Statements 2021-22:

Maximise aviation safety through a regulatory regime, detailed technical material on safety standards, comprehensive aviation industry oversight, risk analysis, industry consultation, education and training.

The Infrastructure, Transport, Regional Development and Communications Portfolio - Portfolio Budget Statements 2021-22 also set out the performance criteria and targets the Government expects CASA to achieve to support the outcome. CASA’s key initiatives align with the Government’s performance criteria, as set out on pages 261-263.

Performance Criteria Target

Number of accidents per hours flown by industry sector Reducing trend (a)

Number of incidents per hours flown by industry sector Reducing trend (a)

CASA maintains the Effective Implementation (EI) Score determined by ICAO Universal Safety Oversight Audit Program (USOAP)

Maintain or improve EI score

Regulatory implementation delivered in accordance with planned and reviewed targets

80% of regulatory development achieved against planned targets

Surveillance determined via a National Oversight Plan consisting of scheduled and response events informed by risk

80% of surveillance events conducted for the period

Deliver a program of aviation safety education seminars to industry participants 90% of seminars delivered against program with satisfaction rate for effectiveness of 80%

Clear, open and transparent engagement with the industry to support the continuous improvement of an efficient and effective aviation safety regulatory framework

100% of significant regulatory changes publicly consulted and outcomes informed by industry feedback

Improving trend in stakeholder satisfaction from regular surveys

Improving trend in audience engagement across CASA’s online channels and social media

Regulatory service applications are decided within published service delivery timeframes

80% processed within published timeframes

All regulatory service activities have a service delivery timeframe applied

(a) This key performance indicator relies on the availability of data which is not published by the Bureau of Infrastructure, Transport and Regional Economics (BITRE) until after 30 June each year.

CASA reports to the Government on progress against the outcome in its Annual Report.

VISION:

Safe skies for all

MISSION:

To promote a positive and collaborative safety culture through a fair, effective and efficient aviation safety regulatory system, supporting our aviation community.

VALUES

To maintain a highly skilled and motivated workforce that embraces these values:

Excellence: to strive to excel in all we do.

Courage: to act with strength of character and conviction while being accountable for our actions.

Integrity: our actions and behaviour are open, transparent and ethical.

Teamwork: to work together to promote a strong, cohesive and highly effective workforce.

Innovation:

to challenge existing practices and look for opportunities to support effective continuous improvement.

Fairness:

to ensure our actions and decisions are informed, consistent, risk-based, evidence driven and without bias.

Respect: to engage with our peers, colleagues and the wider aviation community in a clear, concise and respectful manner at all times.

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CASA’S STRATEGIC APPROACH CASA has three goals to deliver and meet its commitments over the life of this plan:

Goal 1: Maintain and enhance a fair, effective and efficient aviation safety regulation system

Goal 2: Engage collaboratively with the wider aviation community to promote and support a positive safety culture

Goal 3: Continuously improve organisational performance

FINANCIAL ENVIRONMENT The Australian Government handed down its 2021-22 Budget on 11 May 2021. For 2021-22, CASA has budgeted for expenses totalling $212.2 million, including 832 Average Staffing Level to meet its obligations under the Act.

CASA receives funding from three major sources: a 3.556 cents per litre excise on aviation fuel consumed by all domestic aircraft (all of which is provided to CASA); a Government annual appropriation; and regulatory services fees. Whilst CASA conducts surveillance and regulatory oversight of Remotely Piloted Aircraft Systems (RPAS), aerodromes and international carriers, these do not contribute to the fuel excise funding model.

Government has decided that the current funding arrangements, supplemented through Government appropriation for 2021-22 and forward years due to the impacts of COVID-19, should predominately remain in place, ending in 2023-24, apart from one new measure with two components.

The first component is four years of funding for RPAS. This will coincide with the introduction of an annual registration levy for drones. As an initial step towards full cost recovery, for commercial and excluded category drones, all drones weighing not more than 500g will still require annual registration but there will be no associated charge. An annual registration levy of $40 per drone for drones weighing more than 500g will come into effect from 1 July 2021. Additional work on cost recovery arrangements will occur in 2021-22 as the increase in the number of applicable drones becomes evident.

The second component of this measure is the simplification of CASA’s regulatory fee arrangements and is expected to be in place in 2022-23.

Opposite is CASA’s budgeted comprehensive income statement for 30 June 2022 - reference Portfolio Budget Statements.

2021-22

Budget

$’000

2022-23 Forward estimate $’000

2023-24 Forward estimate $’000

2024-25 Forward estimate $’000

EXPENSES

Employee benefits 136,247 140,313 144,501 148,815

Suppliers 51,313 47,952 47,221 48,578

Depreciation and amortisation 24,383 27,101 27,693 28,644

Finance costs 257 334 1,285 1,163

Total expenses 212,200 215,700 220,700 227,200

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 8,900 33,480 33,870 35,990

Interest 150 190 290 500

Other 1,000 1,000 1,000 1,000

Total own-source revenue 10,050 34,670 35,160 37,490

Net (cost of)/contribution by services (202,150) (181,030) (185,540) (189,710)

Revenue from Government 218,982 194,309 196,011 163,642

Surplus/(deficit) attributable to the Australian Government 16,832 13,279 10,471 (26,068)

Total comprehensive income/(loss) 16,832 13,279 10,471 (26,068)

Total comprehensive income/ (loss) attributable to the Australian Government 16,832 13,279 10,471 (26,068)

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Forward Years CASA is budgeting for operating surpluses across the forward estimates, except for 2024-25 after the appropriation funding provided for the impact of COVID-19, through the Australian Airline Financial Relief package ceases at the end of 2023-24. This projected loss will be monitored and may reduce as the aviation industry is expected to be in a recovery phase from the pandemic.

Budgeted departmental balance sheet CASA’s net asset (or equity) position for 2021-22 is forecast to increase by $16.8 million compared to 2020-21, consistent with the anticipated operating surplus and projected capital investment.

Total budgeted assets of $152.3 million in 2021-22 represents an increase of $8.3 million from the estimated 2020-21 closing position, primarily due to an increase in investments. CASA’s financial assets are budgeted to increase in 2022-23 and 2023-24 as the full impact of the RPAS measure takes effect while it decreases in 2024-25 when the Australian Airline Financial Relief package ceases.

Total budgeted liabilities of $82.3 million in 2021-22 represents a planned decrease of $8.5 million from the estimated 2020-21 closing position, primarily driven by a planned decrease in lease liabilities of $8.0 million. CASA’s primary liability continues to be accrued employee leave entitlements of $41.0 million and lease liabilities of $30.8 million.

Capital investment strategy During 2021-22, CASA will be investing $21.8 million in capital expenditure. The 2021-22 investments centre on the delivery of enhanced functionality of CASA’s EAP system and the myCASA portal, as well as activities for transition to the cloud, business intelligence capability uplift, the replacement of desktop, office and data centre equipment and the fit out of Cairns office accommodation. CASA’s investment profile for the period of the Plan is:

• 2022-23 - $27.7 million - the main investment for this period includes planned fitouts for our Canberra office and other regional offices along with continued improvements of our EAP, myCASA portal, cloud and cybersecurity capabilities.

• 2023-24 - $8.1 million - the main investment for this period includes updates of key business systems along with continued improvements of our EAP, myCASA portal, cloud and cybersecurity capabilities.

• 2024-25 - $11.2 million - the main investment for this period includes fitouts for regional offices and updates of key business systems along with continued improvements of our EAP, myCASA portal, cloud and cybersecurity capabilities.

OPERATING ENVIRONMENT

Aviation context In the last Plan, the Australian aviation industry overall was forecast to have year-on-year sustained growth. The onset of the COVID-19 pandemic in March 2020 and the subsequent closing of international and state borders have resulted in a significant adjustment and expected reduction in large regular public transport operations both internationally and domestically impacting the major airline groups and capital city airports. CASA also recognises that the COVID-19 pandemic has had a significant impact on regional airports and operators as well.

Demand for Fly In Fly Out services and cargo operations has remained strong during the COVID-19 pandemic with increases in the transport of essential workers for the resource sector and necessary supplies to regional Australia respectively. Domestic air travel, aerial work, flight training, sport aviation and recreational flying activities will continue to increase over the coming months, however a return to 2019 international air travel levels is expected to take many years. Ad hoc short-term state border closures and travel restrictions may continue to disrupt the sustained reestablishment of domestic operations across Australia.

In the coming years the Australian aviation environment is expected to be more diverse than it has ever been as we continue to see exponential growth in the number of drones used for both commercial and recreational purposes, finalisation of large airport infrastructure projects, initial trials of air taxis, rationalisation and modernisation of aircraft fleets by the larger domestic air transport operators and the possibility of further consolidation across the aviation industry.

Large airline operators will minimise the costs resulting from their limited international operations by continuing to store unused aircraft and reducing the number of active operational and support personnel. As international borders begin to re-open, Australian air transport operators will continue to evaluate the opportunities and the options available to them.

In a connected and open world, regulatory planning for safe operations will need to address challenges from the coexistence of piloted and pilotless aircraft leveraging the emerging technologies associated with advances in automation and self-deconfliction. The exploitation of readily available and accurate data coupled with sound analytics will enhance the ways we monitor, understand and effectively address emerging risks for the respective aviation sectors.

For the period of this plan, CASA expects to adjust those projections based on the significant reductions in international air travel activity in the past year.

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Over the next financial year and forward estimates period CASA anticipates that:

There will be growth or activity similar to pre-COVID-19 levels in:

• Fly in/Fly out operations

• Cargo operations

• Aerial work

• Some flight training

• RPAS operations

• Industry requests to CASA for changes to operating models to optimise business opportunities.

Improvements that will approach pre-COVID-19 level in:

• Domestic travel

• Sport and Recreational flying

• Private flying

• Business aviation.

Continued significant reductions in:

• International travel

• International Passengers

• Domestic Passengers.

Table 1 Summary of areas of change in CASA’s operating environment.

Trend of registered aircraft between 2010-2020.

1. Bureau of Infrastructure, Transport and Regional Economics Aviation Statistics. 2. Figures are consistent with CASA annual reports for period 2010-20.

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Stakeholder context

CASA will continue to ensure the decisions it makes are safe, fair and effective, efficient, timely, transparent, properly documented and compliant with applicable legal requirements. CASA is committed to ensuring its actions are consistent with the principles reflected in its regulatory philosophy. Maintaining strong and constructive relationships with stakeholders is fundamental to this commitment.

CASA has the benefit of regular and positive interaction with a highly engaged sector. We are conscious that our actions have an impact on livelihoods, recreational and business interests and travellers. CASA is committed to building and maintaining collaborative and cooperative relationships with industry in ways that maintain the trust and respect of the travelling public and the wider community.

The Australian aviation community calls for a flexible, pragmatic, practical, proportionate and multi-dimensional approach.

Workforce context

Changes in the aviation industry impact on the demands on CASA’s workforce, systems and processes. Technology is advancing at unprecedented and often unpredictable ways.

To achieve its mission today and into the future, CASA must maintain and support a geographically wide-spread workforce with the right knowledge, skills, experience and other necessary attributes.

Ensuring we have a highly capable, flexible and agile workforce that is adaptable and change-ready is crucial. As the aviation industry changes, CASA must be able to meet its capability requirements and ensure we are able to attract, recruit, develop and retain high quality employees across our operational and enabling functions alike.

We must support our managers to model and embed our values, recognise and reward high performance and address underperformance to enable all employees to be the best they can be.

We continue to foster and maintain a positive safety culture ensuring effective work health and safety practices are embedded in our everyday business activities across our national footprint and through all levels of the organisation.

RISK OVERSIGHT AND MANAGEMENT CASA maintains an appropriate system of risk oversight and management consistent with our duties under the PGPA Act. Our management of risk is guided by the Risk Management Policy, and operationalised through our Risk Management Framework and Risk Management Guideline. Together, these guide the management of risk in accordance with the CASA Board Risk Appetite Statement 2021-22.

CASA’s risk management architecture is maintained in accordance with the Commonwealth Risk Management Policy and the underpinning international standard relating to risk management, ISO 31000:2018. An update to the CASA Risk Management Policy, Framework and Guideline is scheduled for 2021-22, with a focus on enhanced monitoring and the formulation of Key Risk Indicators.

The CASA Board has expressed a low appetite for risk overall, except for risks relating to innovation and continuous improvement, where it is acknowledged that some level of risk taking is necessary to steadily mature as a contemporary regulator. The Board revises the Risk Appetite Statement at least annually, and the Statement is communicated to all CASA staff as a set of guiding principles in relation to engaging with and managing risk.

The CASA Board has identified five strategic risks in 2021-22:

Regulatory failure: A serious accident or incident is attributed to a CASA failure in regulatory or safety oversight which leads to sustained criticism and loss of public and political confidence.

Controls for this risk include:

• National Surveillance Selection Process

• CASA response activities to emerging safety trends

• Campaign targeted surveillance

• Regulatory services

• Systemic approach to aviation safety.

Operating environment: CASA’s operating model is unable to predict, adapt and respond to, the evolving strategic and operational aviation regulatory landscape, including resource (people, IT, infrastructure and finance) requirements in an agile manner. This could potentially compromise CASA’s ability to deliver its services consistent with industry and the Government’s expectations.

Controls for this risk include:

• Adoption of a portfolio view of organisational priorities through CASA governance arrangements

• Workforce Planning arrangements.

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Cyber security: A cyber-security incident that leads to a denial of service or a data breach which results in reputational damage to CASA.

Controls for this risk include:

• Adoption and application of the Protective Security Policy Framework

• Application of security controls in accordance with Information Security Manual

• Implementation of the Australian Signals Directorate Essential 8 risk and mitigation strategy.

Industry capture: CASA staff are perceived as being subject to industry capture leading to a trade-off between industry and safety requirements impacting unacceptably upon CASA’s safety and regulatory decision making.

Controls for this risk include:

• Accountability Framework

• CASA Fraud and Integrity plan and reporting requirements

• Declaration of non-conflict of interest requirements.

Workplace Health and Safety: CASA fails in its duties as a Person conducting a business or undertaking (PCBU), or a CASA officer fails to exercise due diligence to ensure the PCBU complies with the Work Health and Safety Act 2011 and Work Health and Safety (WHS) Regulations, leading to loss of life or lost time injury, including infectious disease such as COVID-19.

Controls for this risk include:

• CASA’s WHS Management system including:

- WHS Quality Assurance program

- Health and Safety Management Arrangements

- Hazard and Incident Reporting process

- WHS Risk Register

- WHS consultative forums

• CASA’s Pandemic Action Plan and Pandemic Planning Team

• CASA’s Early Intervention program.

The strategic and operational risk control environment is subject to regular review through CASA’s internal governance committee structure, the CASA Board, and the Board Audit and Risk Committee.

REGULATORY PERFORMANCE GUIDE The Australian Government’s Regulatory Performance Guide (the Guide) applies to all Commonwealth regulators that administer, monitor or enforce regulation. The Guide articulates the Government’s overarching expectations of regulator performance and comprises three principles of Regulator Best Practice. These are designed to support regulators in developing tailored performance monitoring and reporting processes and metrics.

Principles of Regulator Best Practice:

1. Continuous improvement and building trust: regulators adopt a whole-of-system perspective, continuously improving their performance, capability and culture, to build trust and confidence in Australia’s regulatory settings.

2. Risk-based and data-driven: regulators maintain essential safeguards, using data and digital technology to manage risks proportionately to minimise regulatory burden and to support those they regulate to comply and grow.

3. Collaboration and engagement: regulators are transparent and responsive, implementing regulations in a modern and collaborative way.

The Guide requires regulators to reconcile performance outcomes in their annual performance statements, as part of the annual reporting process, with reference to the best practice principles.

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KEY PERFORMANCE AREAS Goal 1 Maintain and enhance a fair, effective and efficient aviation safety regulation system

Performance statement

Key performance areas Strategies and plans 2021-22 to 2024-25 (Link to PBS, SOE)

Key performance indicators Measures of success Performance statement data

Enhancing CASA’s regulatory framework

1.1 Ensure the Australian civil aviation safety regulatory regime is complete and optimised for aviation safety performance, refresh and recommit to the principles of CASA’s regulatory philosophy (PBS, SOE)

1.2 Improve risk based regulatory management (SOE)

CASA demonstrates excellence in development of the aviation safety regulatory framework.

• CASA follows relevant Government policies leading to standards that meets Government requirements and expectations.

• CASA will understand the risk to include likelihood and consequence related to legislative changes and meaningfully consider the cost and burden associated with introduction of required changes.

• CASA will capture adherence to Government and CASA regulatory development requirements with additional attention to alignment with ICAO Standards and Recommended Practices (SARPs) where possible.

• Terms of reference for all Technical Working Groups include the consideration of cost when developing regulations.

Enhance international compliance

1.3 Engage with ICAO to enhance global and regional aviation safety approaches (SOE)

1.4 Collaborate with overseas regulators to share information, reduce duplication and encourage consistency in safety outcomes (SOE)

1.5 Support regulators in the Asia-Pacific to safely manage growth of aviation in the region (SOE)

CASA’s actions in the international sphere are in accordance with its legal responsibilities and international agreements.

• CASA supports Australia’s membership on the ICAO Council and the Air Navigation Commission, consistent with the Government’s expectations and CASA’s commitments under the Memorandum of Understanding for Australia’s Participation in ICAO.

• CASA has regard to the standards and practices of comparable aviation jurisdictions (The United States, Canada, the European Union, United Kingdom and New Zealand).

• International activities undertaken by CASA should involve the collection, exchange and dissemination of relevant safety-related information, consistent with agreement and protocols governing the collection of such data.

• CASA’s capacity building activities make a significant contribution to the safety-related needs and expectations of the international aviation community.

• CASA participates in all relevant ICAO panels and workgroups.

• CASA makes use of available and appropriate global resources in support of its audit and certification processes, with a view to reducing duplication of effort for both CASA and the aviation industry. (>85%). CASA monitors and assesses international safety developments to inform benchmarks and own safety program improvement. At the same time, CASA contributes to activities and events that allow CASA to influence and affect regional and global safety developments.

• CASA will continue to play an important role in Australia’s engagement in the Asia- Pacific region on aviation safety matters. CASA will continue to provide assistance to its regional counterparts through Australian Government initiatives.

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Performance statement

Key performance areas Strategies and plans 2021-22 to 2024-25 (Link to PBS, SOE)

Key performance indicators Measures of success Performance statement data

Enhance Regulatory execution capabilities

Entry Control

1.6 Develop modern enforcement strategies, policies and practices (PBS, SOE)

Entry control is delivered in accordance with the regulations and assessment made proportionate to the activity being undertaken.

• Government and CASA policies are applied to processing regulatory services applications.

• Reviews of regulatory services practices are undertaken to support continuous improvement.

• Regulatory service decisions are made in a lawful manner and in accordance with published service delivery timeframes.

Compliance assurance and Surveillance

CASA’s National Surveillance Program ensures systematic and responsive surveillance capability to address ongoing and emerging safety issues.

• CASA provides timely notification to industry of future activities, safety findings and compliance expectations.

• 80% of safety findings resulting from surveillance activities finalised and provided to industry participants within defined timelines contained within the CASA surveillance manual.

Non-compliance and Enforcement

CASA’s compliance monitoring approaches are standardised and coordinated relative to the aviation sector.

• CASA notifies industry participants of surveillance safety findings within defined timelines - CASA requires industry participant corrective actions to return to state of compliance within defined timelines.

• 80% of industry participant corrective actions in response to CASA surveillance safety findings completed within defined timelines contained within the CASA surveillance manual.

Actions undertaken are fair consistent and transparent and in accordance with CASA’s enforcement procedures that incorporate relevant principles of CASA’s regulatory philosophy.

• Proportionate enforcement action is taken.

• Enforcement action is taken when corrective action plans fail or is otherwise required.

• Operators who are unable or unwilling to return to compliant operations will be dealt with in accordance with CASA’s enforcement policy and practice.

• Annual review of enforcement actions to determine if changes to the National Surveillance plan are warranted or additional regulatory guidance.

• In accordance with the Prosecution Policy of the Commonwealth, serious breaches of the legislation are referred to the Director of Public Prosecutions (DPP).

• Report on number of matters referred to the DPP and the number of briefs accepted.

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Goal 2 Collaborative engagement with the aviation industry and wider community to promote and support aviation safety

Performance statement

Key performance areas Strategies and plans 2021-22 to 2024-25

Key performance indicators Measures of success Performance statement data

Engagement 2.1 Maintain and enhance stakeholder relationships (PBS, SOE)

2.2 Contribute to confidence in CASA as a fair and effective aviation safety regulator (PBS, SOE)

CASA maintains productive working relationships with key stakeholders.

• Stakeholder satisfaction with CASA’s performance in key areas. • Stakeholder satisfaction measured via regular surveys and client sentiment.

• Stakeholder feedback through the Aviation Safety Advisory Panel and its technical working groups.

• Public consultation feedback via the Consultation Hub.

Promote Safety and Education 2.3 Provide comprehensive safety promotion programs to aviation

stakeholders (PBS)

CASA supports industry awareness and understanding.

• Effective communication to key staff and industry stakeholders using appropriate channels.

• Industry forums conducted openly and transparently.

• Communication to CASA staff is timely to ensure consistent and accurate responses to industry inquiries.

• Guidance material published at identified milestones in rulemaking process.

CASA’s education and safety promotion is relevant, timely, effective and appropriately targeted.

• Education and safety promotion activities meet the needs of aviation stakeholders and CASA staff.

• Industry communication feedback measured via AvSafety seminar feedback and pulse surveys.

• Effective use of all relevant channels including social media.

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Goal 3 Continuous improvement of organisational performance

Performance statement

Key performance areas Strategies and plans 2021-22 to 2024-25

Key performance indicators Measures of success Performance statement data

Robust structures, systems and processes supporting good governance

3.1 Continue to maintain sound financial management (SOE)

3.2 Adopt, develop and drive a digital service delivery environment incorporating contemporary technology environments (PBS)

CASA operates as a solvent entity with strong financial controls.

CASA deploys and leverages information and technology platforms to achieve business improvement and digital service transformation using a client centric development approach.

• Unqualified audit of financial statements.

• Improvements are implemented to enhance CASA’s digital services for staff and clients.

• Unqualified audit opinion and an ANAO report with no category A or B audit findings.

• Effective use of ICT platforms to deliver enhanced digital services capability. Periodic reporting of legacy applications in the application portfolio indicating progress towards end-state and accumulated technical debt at the system-level.

• Technology solutions are deployed effectively to improve IT services for CASA staff and clients. Effectiveness of technology solutions for staff to be measured by per-CASA-user internal Service Desk ticket statistics over time. Effectiveness of technology for clients to be measured by external support incident requests per unique external user statistics.

A skilled workforce

3.3 Develop CASA’s capability and capacity (SOE) Training and development delivered and evaluated to effectively deliver

aviation safety regulatory services.

CASA undertakes workforce planning to ensure that appropriate investment is made in effective people management initiatives.

• The rolling four-year workforce profile is delivered.

• Performance is assessed on delivery of outcomes along with the application of specific capabilities and adherence to CASA’s Values.

• CASA’s workforce is maintained at +/- 2% of Average Staffing Level.

• A capability plan that defines learning pathways for all staff.

• All regulatory functions are performed by trained and qualified staff.

• Implementation of CASA’s Workforce Plan, Capability Plan, Inclusion Plan and Work Health and Safety Plan.

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On the Horizon Australian Aviation will have continuing challenges during the recovery from the COVID-19 pandemic but some sectors will continue to grow at the same time. CASA expects, in the out years, that several new focus areas will emerge that will demand CASA attention in the form of maintaining an awareness of emerging technologies or making new or amending current legislation and standards to support new opportunities.

CASA believes that the following areas will demand some level of ongoing attention (not an exhaustive list):

• Establishing and maintaining pandemic related travel corridors in relation to current regulations.

• Unmanned Traffic Management (UTM) development and integration into the existing Air Traffic Management (ATM) system.

• Increased understanding of Urban and Regional Air Mobility.

• Determining licensing, certification and design requirements for Urban Air Mobility (UAM).

• Consideration of Design and Type Certification standards for drones and UAM aircraft.

• Maximising use of Technical Working Groups to address targeted regulatory changes that most benefit industry e.g. Part 61 enhancements.

• Continue to work with Airservices to progress the move to OneSky - a unified air traffic management solution.

• Continue to work with Geoscience Australia and Airservices to progress safe and timely implementation of satellite based augmentation systems in the air traffic management environment.

Compliance table The Plan has been prepared in accordance with the statutory provisions of:

• Section 44 of the Civil Aviation Act 1988

• Section 35(1) of the Public Governance, Performance and Accountability Act 2013

• Public Governance, Performance and Accountability Rule 2014.

CASA has an obligation to provide details of the following matters:

Requirement Page(s)

Statement of preparation 5

Purposes of the entity 9

Operating environment 19

Risk oversight and management 23-24

CASA’s performance measures 26-33

Notes

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CASA National Headquarters Aviation House 16 Furzer Street Phillip ACT 2606

GPO Box 2005 Canberra ACT 2601