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Department of Immigration and Border Protection—Report for 2016-17


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2016-17

COPYRIGHT © Commonwealth of Australia 2017

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CONTACT OFFICER Requests for information about this report should be directed to:

Annual Report Coordinator - Governance and Evaluation Branch Department of Immigration and Border Protection PO Box 25, BELCONNEN, ACT 2616 Phone: (02) 6264 1111 Email: annual_report@border.gov.au Website: www.border.gov.au

Online versions of the annual report are available on the Department’s website at: www.border.gov.au/about/reports-publications/reports/annual

ISSN 2205-2070 (print)

ISSN 2205-2089 (online)

iii ii

Letter of transmittal

The Hon Peter Dutton MP Minister for Immigration and Border Protection Parliament House Canberra ACT 2600

Dear Minister

We are pleased to present the Department of Immigration and Border Protection Annual Report 2016−17 for the reporting period ending 30 June 2017, as is required by subsection 46(1) of the Public Governance, Performance and Accountability Act 2013.

The report has been prepared pursuant to the requirements for annual reports approved by the Joint Committee of Public Accounts and Audit and as prescribed in the Public Governance, Performance and Accountability Rule 2014 (the Rule).

I, the Secretary, as the accountable authority, certify that the Department has prepared fraud and corruption risk assessments and a fraud control and anti-corruption plan that comply with the requirements of section 10 of the Rule. We have fraud prevention, detection, investigation, reporting and data collection procedures and processes in place that align with the requirements of the Commonwealth Fraud Control Framework 2014.

We have taken reasonable measures to minimise the incidence of fraud within the Department and to investigate and recover the proceeds of fraud against the Department.

Yours sincerely

Michael Pezzullo Secretary

18 September 2017

Michael Outram APM

A/g Australian Border Force Commissioner

19 September 2017

6 Chan Street Belconnen ACT 2617

PO Box 25 Belconnen ACT 2616 • Telephone: 02 6264 1111 • Fax: 02 6225 6970 • www.border.gov.au

iii ii

iv

Contents Letter of transmittal iii

Reader’s guide x

PART 1: Overview 2

Secretary’s and Commissioner’s review 2

About the Department 10

Organisational structure 12

Legislation 19

PART 2: Annual performance statements 26

Statement by the accountable authority 26

Purpose 1: Manage the movement of people and goods to contribute to a str ong economy 26

SPM 1.1 Australia’s visa programmes are responsive to the needs of the economy 30

SPM 1.2 The collection of border r evenue is managed and enhanced 38

SPM 1.3 Seamless bor der management facilitates the flow of legitimat e travellers and goods 44

SPM 1.4 Effectiv e partnerships both within and outside Australia build a strong econom y 52

Purpose 2: Manage the movement and stay of people to contribute to a cohesiv e society 58

SPM 2.1 Australia’s visa programmes provide a strong foundation for social cohesion 60

SPM 2.2 Australian citizenship is valued 66

SPM 2.3 Australia contributes to the global management of refugees and displaced populations 72

SPM 2.

4 The int egrity of visa programmes is strengthened by effectiv e regulatory and enforcement activities 78

v

Purpose 3: Manage the border to contribute to a safer, secure Australia 86

SPM 3.1 Threa ts are detected before, at and after the border 88

SPM 3.2 The border is str engthened through the control and surveillance of the maritime domain 98

SPM 3.3 Collaboration with partners within and outside Australia improves border security 104

PART 3: Report on financial performance 116

P

ART 4: Financial statements 121

Independent auditor’s report 122

Statement by the Secretary and Chief Finance Officer 126

Financial statements 128

Notes to and forming part of the financial statements 140

PART 5: Management and accountability 196

Corporate governance 197

External scrutiny 209

Client service 218

Human resources management 225

Work health and safety 238

Pr

ocurement, services, assets and grants 242

Ecologic

ally sustainable development and environmental performance 248

v

vi

PART 6: Appendices 254

Appendix A: Year s at a Glance 254

Appendix B: Corr ection of material errors 258

Appendix C: Report on financial perf ormance 264

Appendix D: Salary and classific ation rates 27 2

Appendix E: Administr ation of the Office of the Migration Agents Registr ation Authority 27 6

Appendix F: Informa tion Publication Scheme 27 9

PART 7: Reference material 282

Abbreviations and acronyms 282

Glossary 288

List of requirements 300

Index 306

vii

Figures

Figure 1: Org anisational structure at 30 June 2017 12

Figure 2: Office and post loca tions at 30 June 2017 20

Figure 3: Outcome and pr ogramme structure 2016-17 23

F

igure 4: Purpose 1 perf ormance snapshot 29

Figure 5: Purpose 2 P erformance snapshot 59

Figure 6: Purpose 3 P erformance snapshot 87

Figure 7: Senior go vernance bodies for 2016-17 202

Figure 8: Senior Executiv e Service headcount by gender 227

F

igure 9: Staffing headcount by loc ation 30 June 2017 227

F

igure 10: Experience of regist ered migrant agents at 30 June 2017 277

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Tables

Table 1: Purpose 1 perf ormance criteria 27

T

able 2: SPM 1.1 - Austr alia’s visa programmes are responsive to the needs of the econom y 33

Table 3: SPM 1.2 - The collection of border r evenue is managed and enhanced 40

Table 4: SPM 1.3 - Seamless bor der management facilitates the flow of legitimat e traveller and goods 46

Table 5: SPM 1.4 - Eff ective partnerships within and outside Australia builds a strong econom y 54

Table 6: Purpose 2 perf ormance criteria 58

Table 7: SPM 2.1 - Austr alia’s visa programmes provide a strong foundation for s ocial cohesion 63

Table 8: SPM 2.2 - Austr alian citizenship is valued 68

Table 9: SPM 2.3 - Austr alian contributes to the global management of refug ees and displaced populations 75

T

able 10: SPM 2.4 - The in tegrity of visa programmes is strengthened by effectiv e regulatory and enforcement activities 81

Table 11: Purpose 3 perf ormance criteria 86

Table 12: SPM 3.1 - Thr eats are detected before, at and after the border 92

Table 13: SPM 3.2 - The bor der is strengthened through the control and surveillance of the maritime domain 100

Table 14: SPM 3.3 - C ollaboration with partners within and outside Austr alia improves border security 109

Table 15: Reports fr om parliamentary committees 2016-17 215

Table 16: Sy dney Service Centre performance 222

Table 17: Staffing headcount by actual clas sification 226

Table 18: Salary rang es for staff at 30 June 2017 234

T

able 19: Number of departmen tal employees on subsection 24 (1) Determina tions or IFAs at 30 June 2017 235

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Table 20: Perf ormance pay outcomes 2016-17 (Austr alian Customs and Border Protection Service Ent erprise Agreement 2011-2014) 23 7

Table 21: WHS outcomes 239

T

able 22: Three-y ear summary of mechanism of injury for accepted claims 240

T

able 23: Incidents notified t o Comcare under sections 35, 36 and 37 of the Work Health and Safety Act 2011 241

Table 24: Adv ertising and market research expenditure 244

T

able 25: Legal s ervices expenditure 245

T

able 26: The Department’ s energy performance against EEGO policy int ensity target 251

Table 27: Year s at a Glance 254

Table 28: Corr ectional errors for Annual Report 2015-16: Outcome 1 financial r esources summary for 2015-16 (Table 12 P age 98 Annual Report 2015-16) 259

Table 29: Corr ectional errors for Annual Report 2015-16: Outcome 2 financial r esources summary for 2015-16 (Table 13 P age 100 Annual Report 2015-16) 261

Table 30: Corr ectional errors for Annual Report 2015-16: Outcome 3 financial r esources summary for 2015-16 (Table 1 4 Page 102 Annual Report 2015-16) 262

Table 31: Salary and classific ation rates - Indigenous cadets and graduates 27 2

Table 32: Salary and classific ation rates - APS level staff 27 3

Table 33: Salary and classific ation rates - Executive Level Staff 27 4

Table 34: Salary and classific ation rates - Legal Officers 27 4

Table 35: Salary and classific ation rates - Public Affairs Officer 27 5

Table 36: Salary and classific ation rates - Medical officers 27 5

Table 37: Experience of regist ered migration agents at 30 June 2017 27 6

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Reader’s guide

T his is the Annual Report from the Secretary of the Department of Immigration and Border Protection and the Commissioner of the Australian Border Force (ABF) to the Minister for Immigration and Border Protection for the financial year ended 30 June 2017. The report reviews the purposes and outcomes of the Department and the ABF, collectively referred to as either the Department or DIBP within this report.

Report Structure

The structure of this report differs from reports of previous years. The Government’s Public Management Reform Agenda seeks to improve the quality of Commonwealth entities’ corporate planning and performance management. To effect this change, the report has been prepared in accordance with the Department of Finance’s Resource Management Guide No.135 Annual reports for non-corporate Commonwealth entities, issued in May 2017. The report is divided into seven parts:

PART 1: Overview This part contains a review of the year by the Secretary of the Department of Immigration and Border Protection and the Commissioner of the Australian Border Force, including significant achievements, developments, performance and financial performance. This part also provides an overview of the Department, its role, functions, organisational structure, and outcome and programme structure.

PART 2: Annual performance statements This part reports on the Department’s results against performance criteria as outlined in the Corporate Plan 2016-17, Portfolio Budget Statements 2016-17 and Portfolio Additional Estimate Statements 2016-17 and provides an analysis of the factors that contributed to its performance.

PARTS 3 and 4: Report on financial performance and financial statements These parts contain a discussion and analysis of the Department’s financial performance, audited financial statements and a report by the Auditor-General.

ANNUAL PERFORMANCE STATEMENT xi x

PART 5: Management and accountability This part provides information about the Department’s governance framework, fraud and risk management arrangements, external scrutiny, workforce planning, human resources and purchasing. It also includes information about workplace health and safety, small business, procurement initiatives, client services, advertising and market research, ecologically sustainable development and environmental performance, and grants programmes.

PART 6: Appendices This part provides supplementary information such as the Years at a Glance statistical table, corrected material errors from the 2015-16 Annual Report, tables relating to the report on financial performance section, and information on the operation of the Office of the Migration Agents Registration Authority (OMARA) and the Information Publication Scheme.

PART 7: Reference material This part comprises a list of abbreviations and acronyms, a glossary, the list of requirements under the Public Governance, Performance and Accountability Rule 2014, and the alphabetical index of contents.

ANNUAL PERFORMANCE STATEMENT xi x

Overview

PART 1

SECRETARY’S AND COMMISSIONER’S REVIEW

2

ABOUT THE DEPARTMENT 10

ORGANISATIONAL STRUCTURE 12

LEGISLATION 19

PART 1: Overview

SECRETARY’S AND COMMISSIONER’S REVIEW

T his annual report marks two years since the integration of the former Australian Customs and Border Protection Service and the Department of Immigration and Border Protection (the Department), and the standing up of its operational arm, the Australian Border Force (ABF).

Integration occurred have both—there can be no previous financial year. We against a complex backdrop, separation between the two. received a record 201,250 where the confluence of a applications for Australian

volatile threat environment The Department continues citizenship by conferral, with both enduring and to work towards a seamless and conferred Australian emerging threats, and border—where the majority citizenship on 137,750 ever-increasing volumes of legitimate migrants, people. We also delivered of trade and travellers travellers and trade can 183,608 places through within the Immigration move easily and effortlessly our Migration Programme. and Customs domains across the border without The ABF processed more necessitated a program of interference or unnecessary than 43 million air and sea modernisation and reform. delay, while our officers travellers. We received

focus their attention on the and risk assessed more

As we move into a new era non-compliant few. This than 42 million air cargo for border protection in requires an intelligence- consignments, three million Australia, we have developed informed, risk-based sea cargo consignments, the capabilities to more approach to managing and inspected more than effectively manage the rising the border to provide a 58 million international tide of complex threats in greater focus on unknown mail items. This resulted the border environment. or high-risk entities. in 1709 detections of Our secure trade and undeclared firearms, parts

migration programs are In the 2016-17 year, we and accessories and more built on the foundation of granted more than 8.4 million than seven tonnes of major a secure border. We can temporary visas—an 8.7 illicit drugs and precursors. have both and we must per cent increase on the The Tobacco Strike Team

OVERVIEW 3 2

continued to disrupt imports of illicit tobacco by organised crime syndicates and those attempting to evade import duties, detecting in excess of 123 million individual cigarettes and more than 64 tonnes of tobacco.

We have transformed the way we work end-to-end and are undertaking ongoing and comprehensive reform to ensure that our immigration and border protection arrangements support Australia’s security, economy and society in the 21st century. At the same time, we continue to do our day-to-day work— facilitating record border flows while safeguarding the integrity of our borders.

In the past year, we have seen yet more change on a global and domestic level, much of which affects our work. The 2016-17 year was a significant one for the portfolio.

Australia continues to rank as one of the top three resettlement countries in the world, with the Department committed to a strong Humanitarian Programme, focused on helping vulnerable people overseas to enter the country in a planned, orderly manner. We delivered 13,760 places through our Humanitarian Programme in 2016-17. Additionally, in September 2015, Australia committed to resettling an additional 12,000 people displaced by conflicts in

Syria and Iraq, and in March 2017 we met that milestone with the last of the 12,000 visas being granted. Priority was given to persecuted minorities, women, children and families displaced by the conflicts in Syria and Iraq with the least prospect of safe return to their home.

The Department has introduced a range of visa initiatives designed to ensure Australia’s visa programs remain internationally competitive while encouraging sustainable growth.

On 1 July 2016, the Department introduced the Simplified Student Visa Framework (SSVF), which streamlined the

OVERVIEW 3 2

visa application process market consultation paper, some considerable success for genuine students, Delivering visa services for with the disruption of large reduced red tape for Australia, was released scale border controlled

business, and bolstered in June 2017 to start the drugs through joint ABF immigration integrity. long-term process of and Australian Federal

market engagement. This Police (AFP) operations,

We also implemented a program of transformational and we continue to target new Entrepreneur visa change in service delivery illegal foreign fishing, and amended the points will continue in parallel which remains an ongoing test for skilled migration with work underway on threat to our resources to attract and retain transforming Australia’s and environment. talented, skilled migrants. In visa system to make it easier addition, we implemented to understand, easier to We undertook a $5 million new and innovative navigate and more responsive Bay Class Vessel Refresh tourist visa products, to Australia’s economic, Works Program to including a Lodgement in social and security interests. significantly improve the Simplified Chinese and operational capability of two

a 10-year validity Visitor In the maritime domain, we vessels from the existing (subclass 600) visa. We continue to maintain a robust ABF fleet, ABFC Roebuck Bay have progressed plans to surveillance and response and ABFC Storm Bay. The replace the Temporary posture in Australian waters. refreshed vessels form part of Work (Skilled) (subclass With nearly 60,000km of the new tiered Torres Strait 457) visa to provide coastline inclusive of our Marine Capability being incentives for businesses islands, Australia’s maritime delivered to combat specific to employ Australians first, Exclusive Economic Zone is challenges in the Torres expanded the Community 8.2 million square kilometres Strait region and increase Support Program, and are - larger than our country’s the ABF’s responsiveness to working towards changes to land mass. The ABF’s managing border issues. In citizenship requirements. Maritime Border Command addition, we have taken full

utilises both Australian command of the ABFC Ocean

On 9 May 2017, as part of Defence Force and ABF Shield for the first time. We the 2017-18 Budget, the vessels, aircraft and people to now operate the largest fleet Minister for Immigration effectively provide Australia of marine vessels in the and Border Protection with a multi-layered history of the ABF and its

announced a long-term approach to security. This predecessor organisations. program of transformational enables the ABF to address change to the way in threats offshore, before they Operation Sovereign Borders which visa and citizenship reach Australia’s shores. continues to disrupt, services are delivered. A The ABF has achieved deter and prevent illegal

OVERVIEW 5 4

maritime migration to Australia, maintaining secure Australian borders and preventing deaths at sea as a result of people smuggling. July 2017 marked three years since the last people smuggling venture reached mainland Australia. While Operation Sovereign Borders has significantly reduced the frequency of attempts to reach Australia illegally by boat, people smuggling remains an ongoing threat to border security in the region. There is no room for complacency—we must be resolute in ensuring the illegal maritime pathway to Australia remains closed.

The Department is committed to resolving the legacy caseload of 50,000 people who came to Australia illegally by boat between 2008 and 2014. On 21 May 2017 the Minister for Immigration and Border Protection announced that all people who came illegally by boat and are seeking protection in Australia must lodge a temporary protection visa application before 1 October 2017, or make arrangements to depart. The Department

is also continuing to support the Governments of Nauru and Papua New Guinea with those subject to regional processing arrangements.

An independent Child Protection Panel was established to review the Department’s practices and ensure that a comprehensive and contemporary framework relating to the protection of children is in place. The Panel provided the Department with 17 recommendations in its published report. The Department has accepted all recommendations and is in the process of implementing them.

In conjunction with the Panel’s findings, the Department launched its Child Safeguarding Framework in October 2016—a blueprint for how we will continue to build and strengthen our policies, processes and systems to protect children. This framework is supported by a series of new policies and procedures to ensure children are protected in our immigration programs. The Child Protection

Panel is returning in October 2017 to review the Department’s progress in implementing their report recommendations and the Child Safeguarding Framework.

We also released the Detention Capability Review report in January 2017. The internal review was undertaken to ensure that the Australian immigration detention network is affordable and sustainable for the future. The Department’s Executive endorsed all of the review’s 43 recommendations to support a series of changes across the Australian immigration detention system. Implementation of the recommendations is well under way, and will require a sustained approach over multiple years. This includes finalising a new Resolving Immigration Status operating model, an improved risk-based approach that supports the appropriate placement and management of individuals while their status is being resolved, and steps towards the realignment of the immigration detention estate to better

OVERVIEW 5 4

suit the new operating model and the future immigration environment.

Australia’s immigration detention network has continued to adapt in response to large-scale changes in the migration environment. The ongoing success of our strong border control policies has enabled the closure of 15 immigration detention facilities since December 2013. In the past year, we closed the Perth Immigration Residential Housing, and did not renew the lease for Wickham Point Detention Centre. We have seen a continued reduction in the number of people in Australian immigration detention, including removing all children from detention. However, we have seen an increase in the percentage of high-risk detainees, such as those with a criminal history and links to criminal associations.

The ABF continued to make Australia’s immigration detention facilities safer and more secure. Operation Safe Centres has provided coordinated activity to deter and disrupt criminal and high risk behaviour.

This includes enhanced screening arrangements to prevent contraband entering facilities. Through our ongoing enhancements to the management of the immigration detention network, we are better able to detect, prevent and respond to criminal activity and reduce the smuggling of contraband.

In the traveller space, the Department is continuing to develop our border control processes for the future in collaboration with industry, government and international partners.

In the sea environment, we are developing a trusted operator model for cruise ships. To inform this, we completed a series of proof-of-concept Provisional Clearance Trials between October 2016 and May 2017 to evaluate the feasibility of leveraging cruise ship operators’ capability and check-in processes to support provisional immigration clearance. We are planning further trials for next cruise ship season, and continue to work with stakeholders on a framework for the trusted operator model.

Australia is a global leader in implementing automated border clearances at our busy international airports. The Department is committed to advancing our intelligence and biometrics capabilities to further streamline travel while strengthening border integrity. This year, more than 14.6 million passengers used automated Departures SmartGates at our international airports— averaging more than 40,000 people every day. We also made progress towards the implementation of new generation Arrivals SmartGates, to begin rollout in the 2017-18 year. We also worked towards removing the paper Outgoing Passenger Card (OPC), with the information previously gathered via paper-based OPCs collated from existing Government data instead. This initiative supports the move towards a more seamless, secure and simplified border clearance process.

Regular international flights into Canberra Airport started in September 2016 thanks to the cooperation of various border agencies, the law enforcement

OVERVIEW 7 6

community, and the airport operator. Canberra Airport’s capabilities include the full range of enforcement technology, a Counter Terrorism Unit (CTU) team, Departures SmartGates and newly deployed ABF officers to manage regular international flights.

In June 2017, we collaborated with the Department of Agriculture and Water Resources and Canberra Airport to co-design and trial a range of innovative business processes in the customs-controlled precinct enabled by supporting infrastructure and technology. This was highly successful and will inform the design of future service delivery models at the border.

Our Airline Liaison Officer (ALO) program is an integral part of our layered approach to border management. Strategically located at 17 key international hubs, ALOs operate ahead of the border, working with airlines, airport security groups and host governments to identify and manage threats and risks before they reach the Australian border. During the 2016-17 year, ALOs

interdicted 174 people who were either improperly documented or imposters from entering Australia.

The ABF’s CTU teams have enhanced our ability to handle inbound and outbound national security risks by proactively identifying and interdicting persons of national security interest. CTU teams conducted 236,455 assessments and 14,042 patrols nationally. This resulted in 729 positive outcomes including the detection of undeclared excess currency, the suspension or cancellation of passports, or the imposition of infringement notices. A further number are the subject of ongoing intelligence and law enforcement investigation and interest.

In keeping with our identity as an intelligence-led organisation, we are working towards improving risk assessment processes with a new Visa Risk Assessment capability to support stronger national security outcomes and offer better protection to the Australian community. This capability enhances

assessment of terrorism and criminal threats to Australia before they arrive at the border. It consolidates broad-ranging immigration and border information that allows risks to be assessed through targeted intelligence and better use of consolidated data.

Visa Risk Assessment will allow us to identify potential issues earlier to enable swifter action, such as visa cancellations, earlier in the process. It also includes the capability to identify low-risk visa applicants, providing a more streamlined process and improved customer experience.

The Department and its frontline law enforcement agency, the ABF, is committed to ensuring the integrity of Australia’s migration and visa programs. We are engaged in regular operations around the country, targeting individuals who have overstayed their visa and companies who are either employing non-citizens who do not have work rights, or those engaged in worker exploitation across a wide range of industries. There were 15,885 location

OVERVIEW 7 6

events of unlawful non- or other criminal activity, concern while maintaining citizens, including 2,268 particularly targeting a strong industry education locations of illegal workers, outlaw motorcycle gangs program of work. Despite issued 396 illegal worker (OMCGs). We cancelled an increase in shipments warning notices to employers 1284 visas and refused 626 examined, there has not been for employing unlawful visa applications under a proportionate increase non-citizens or non- the character provisions of in the overall number of citizens in breach of their section 501 of the Migration positive detections. visa conditions, and made Act 1958. There were 38 57,161 visa cancellations OMCG members, associates On 15 May 2017, the for a variety of reasons. or those involved in organised Department stood up

crime cases who had visas Enforcement Command,

Through Taskforce Cadena, cancelled or refused. a new division within the ABF has targeted and the ABF. This division’s

disrupted the organisers of The ABF has a vital multidisciplinary and illegal work, visa fraud and community protection role in cross-skilled workforce the exploitation of foreign protecting Australia’s borders harnesses the ABF’s workers, and continues from the entry of illegal and specialist investigative and to confront systemic visa harmful goods. Working enforcement capabilities exploitation. The Taskforce with law enforcement to target serious and completed seven operations partners including the organised crime, serious across multiple states Australian Federal Police, and deliberate non-and industry types, and we made many significant compliance, and systemic executed 14 warrants. While detections of illicit drugs, vulnerabilities that threaten some of these matters are including record seizures the integrity of Australia’s ongoing, offences include of ice and cocaine—with trade and migration the referral or employment estimated street values of systems. Enforcement of unlawful non-citizens, the more than $600 million and Command works across concealment or harbouring $300 million respectively. the ABF and with our law of non-citizens, and visa enforcement partners.

holders being in breach In addition, we continued our of visa conditions. increased operational focus The Australian Trusted to deter and detect goods Trader (ATT) program has The Department continues to suspected of containing now been running for a year, work with law enforcement asbestos from entering our with 36 fully accredited and other agencies to identify, border through asbestos trusted traders and many and where appropriate, risk profiles and alerts that more coming. The program cancel visas for non-citizens identify and target high risk streamlines trade by engaging in gang violence shipments and importers of reducing regulatory barriers

OVERVIEW 9 8 8

for accredited traders and has increased efficiency without compromising supply chain security.

The establishment of Mutual Recognition Arrangements with Australia’s top trading partners is a key benefit to ATT and is anticipated to create a direct benefit of $2.4 billion for participants over 10 years.

Our young organisation has made tremendous progress in a relatively short amount of time. The Department, including the ABF, is now truly a border management agency for the 21st century. The information contained in this report will attest to the hard work, dedication and professionalism of our staff. As the Department looks forward to becoming part of

the new Department of Home Affairs, we remain committed to keeping Australia open for business and building the capabilities required for Australia’s future security and prosperity.

Michael Pezzullo Secretary Department of Immigration and Border Protection

Michael Outram A/g Australian Border Force Commissioner

OVERVIEW 9 8 8

ABOUT THE DEPARTMENT

At 30 June 2017 the Department had two Ministers: the Hon Peter Dutton MP, Minister for Immigration and Border Protection, and the Hon Alex Hawke MP, Assistant Minister for Immigration and Border Protection.

The Department is committed to its vision as Australia’s trusted global gateway. Its role is to protect Australia’s border while facilitating trade, travel and migration. The Department must uphold the trust of the Australian people and Government, stemming from its privileged role at the border and in the community.

The Department develops and manages responsive programmes (including Australia’s Migration, Humanitarian and Citizenship Programmes) to adapt to changing threats, technological advances and legislative amendments. Through these programmes the Department makes a significant contribution to the Australian economy, the global management of refugees and displaced populations, and Australian social cohesion. DIBP’s management of trade, customs, revenue collection, border protection and offshore maritime security also underpins

Australia’s economy, sovereignty and national security. The Department works closely with international and domestic governments, agencies and law enforcement bodies to enhance border security and facilitate the movement of legitimate travellers and goods.

The ABF, the Department’s operational enforcement arm and Australia’s customs service, is responsible for the continued management of compliance, investigations and immigration detention operations at air and seaports, and across Australia’s land and maritime domains.

11 10

The Department contributes to an Australia that is internationally competitive, prosperous and secure. Our purposes are to:

1. manage the movement of people and goods to contribute to a strong economy

2. manage the movement and stay of people to contribute to a cohesive society

3. manage the border to contribute to a safer, secure Australia.

An overview of each purpose statement and its associated strategic performance measures (SPMs) are provided in Part 2 of this report, annual performance statements.

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ORGANISATIONAL STRUCTURE Figure 1: Organisational structure at 30 June 2017

Department of Immigration and Border Protection

Secretary A/g Commissioner

Michael Pezzullo Michael Outram

Policy

Group

Corporate Intelligence and

Capability

Visa and Citizenship Services

Support Operations

Strategic Policy and Planning

Division

Executive Intelligence Visa and

Citizenship Management

Border Management

Maritime Border Command

Immigration and Citizenship Policy

Corporate Services

Information Communications Technology

Refugee and Humanitarian Visa Management

Border Force Capability

Strategic Border Command

Policy Group Taskforce

People Major Capability Community

Protection

Children, Community and Settlement Services

Detention and Offshore Operations Command

Traveller, Customs

Finance Identity and

Biometrics

Digital Transformation Detention Services Enforcement Command

and Industry Policy

and Channels

International Legal Health Services

and Policy

Operation Sovereign Borders Joint Agency Task Force

Integrity, Security and Assurance

Enterprise Strategy and Assurance

OVERVIEW 13 12

Policy

Deputy Secretary

Deputy Comptroller-General Rachel Noble PSM

Strategic Policy and Planning

FAS

Immigration and Citizenship Policy Policy Group Taskforce

Traveller Customs and Industry Policy International Lachlan Colquhoun

Jason Russo A/g David Wilden Linda Geddes Andrew Chandler A/g

Strategy and Future Capability

Ben Evans

AS/Commander

Community Protection and Border Policy

Policy Group Taskforce

Mark Jeffries

Traveller Branch John Gibbon Asia Branch Robert McGregor

Hamish Hansford

Chief Economist Chief Statistician Statistics and Information Governance

Economic Policy

Michael Willard

Policy Group Taskforce

Chloe Bird

Trade and Customs

Josh Hutton A/g

Americas, Europe, Middle East and Africa

Brett Schuppan A/g

Ciara Spencer A/g

Humanitarian, Trusted Trade Pacific and

Family and Citizenship Policy

and Industry

Genevieve Watson

Transnational Issues

Alice Ling Anthony Seebach

Planning, Design and Assurance Branch Michael Burke

International

Lachlan Colquhoun

Minister Counsellor Geneva Minister Counsellor Asia

Regional Director North Asia Regional Director Middle East and

Regional Director South East Asia

Richard Johnson Chris Wall Teresa Conolan Africa Chris Waters

John Moorhouse

Regional Director South Asia

Scott Matheson

Regional Director Europe Abi Bradshaw

Regional Director Americas

Derek Bopping

Regional Director Pacific

Phil Brezzo

Regional Director Mekong Region

David Ness

OVERVIEW 13 12

Corporate

Deputy Secretary

Chief Operating Officer Jenet Connell

Executive

Shannon Frazer

FAS

Corporate Services

Ben Wright

People

Murali Venugopal

Finance

Chief Finance Officer Steven Groves

Legal

General Counsel

Pip de Veau

Integrity, Security and Assurance

Chief Audit

Enterprise Strategy, Reform and Performance

Executive Chief Risk

Cheryl-anne Officer Moy Peta Dunn

Ministerial and Parliamentary

AS

Payroll and Payments

Ryan

Learning and Development

Allison

External Budget and Revenue

Legislation and Framework

Integrity and Professional Standards

Enterprise Strategy and Risk

Brett Marshall Summerton Denny-Collins Lisa Harris Greg Phillipson Mark Brown Catherine Seaberg

Communication and Engagement

Property and Commercial Services

People Strategy and Policy

Management Accounting

Stephanie

Litigation Branch

Miriam Moore

Audit and Assurance

Lisa-Ann

Enterprise Reform Programme

Sally Bower A/g Brad Clark Ben Wyers Cargill Howgego Audrey Gilrain

Executive FOI, Privacy Support and and Records Engagement Management

Workforce Management

Anne Leo

Financial Operations

Sam Hatherly

Commercial and Employment

Detention Assurance

Justine Jones

Governance and Evaluation

Susan Mathew

Senior Director Vidoshi Jana Nicole Ingram

Katie Gabriel A/g

WHS and Enterprise Agreement

David Leonard

Procurement and Contracts

Ian Laverock

Legal Advice and Operational Support

Security

Senior Director

Andrew Brooks

Administrative Compliance Review

Agnieszka

Steve McGlynn Holland

Special Counsel

Ian Deane PSM

OVERVIEW 15 14

Intelligence and Capability

Deputy Secretary

Maria Fernandez PSM

Intelligence

Cameron Ashe

FAS

Information Communications Technology

Major Capability

Michael Milford AM

Identity and Biometrics

Joe Franzi

Chief Information Officer

Randall Brugeaud

Intelligence Support

Dominique Poidevin

AS

Intelligence, Identity and Biometrics Systems Business Engagement and PMO

Enterprise Biometrics

Paul Cross

Thomas Bryan Rhys Goodwin

National intelligence

Adam Meyer

Visa, Citizenship and Digital Systems Strategy Architecture and Innovation

Enterprise Identity

Michael Minns

Anthony Warnock Dane Cupit A/g

Intelligence Development

Jeff Carige

Traveller, Cargo and Trade Systems

Sourcing and Vendor Management Identity Capability Management

Ben Staughton Duane Stokes Senior Director

Anna Lutz

Border Intelligence Fusion Centre

Corporate and Case Systems

Operational Capability

Rebecca Camp A/g

Lynn Moore Lynn White

Strategic Assessments and Intelligence Management

Technology Operations and Support

Sean Hugo

Senior Director

Ian Mayo A/g

OVERVIEW 15 14

Visa and Citizenship Services

Deputy Secretary

Kaylene Zakharoff A/g

Visa and Citizenship Management

Christine Dacey

FAS

Refugee and Humanitarian Visa Management

Community Protection

Peter Richards A/g

Digital Transformation and Channels

Tara Cavanagh A/g

Luke Mansfield

Permanent Visa and Citizenship Programme

Damien Kilner

AS

Refugee and Humanitarian Programme

Status Resolution

Dora Chin-Tan

Channel Strategies and Management

Renelle Forster

Libby Hampton

Temporary Visa Programme

Temporary Protection Visa Assessment Character Assessment and Cancellations

Visa Reform Implementation

Judith O’Neill Frances Finney PSM Fiona Andrew James Savage A/g

Network Planning and Support

Onshore Protection

Miranda Lauman

Caseload Assurance

Suzanne Muir A/g

Immigration Reform and Implementation Office

Tania Wilson Senior Director

Vacant

Labour/Skilled Visas Status Resolution

Senior Director Senior Director

Robyn Legg Sally Pfeiffer

Visa and Citizenship Management

Christine Dacey

Regional Director Regional Director NSW/ACT QLD

Regional Director Central

Regional Director Vic/TAS

Lesley Dalton Steve Biddle Jane Sansom Peter Van Vliet

West

Senior Director

Steven Karras

OVERVIEW 17 16

Support

Deputy Commissioner

Mandy Newton APM

Border Management

Jim Williams

Asst. Comm.

Border Force Capability

Stephen Hayward

Children, Community and Settlement Services

Claire

Detention Services

David Nockels

Health Services and Policy

Chief Medical Officer Surgeon

Regional Processing Taskforce

Commander

Kylie Scholten

Ramiform Taskforce

Chief Superintendent

Bjorn Roberts

Roennfeldt General

A/g Dr John

Brayley

Operational Strategies

Bill Ries

Commander

Air and Marine

David Luhrs

Community Programmes and Reporting

Service Management

Lee-ann Monterosso

Immigration Health

Deputy Chief Medical Officer

Kerry Rayner A/g

Dr Paul Douglas

Customs Compliance

Erin Dale

ABF Change and Career Management

Malcolm

Regional Processing and Performance

Detention Estate Management

Fatime Shyqyr

Health Strategy and Planning

Leonie

Phelps A/g Alana Sullivan Nowland

A/g

Immigration Compliance

Don Smith

Specialist Operations Support and Business Engagement (SOSBE)

Child Wellbeing

David Norris A/g

Craig Sommerville

Trusted Trader Programme

ABF College

Chief Superintendent

Chief Superintendent Jane Curry A/g

Sneha Chatterjee

OVERVIEW 17 16

Operations

A/g Deputy Commissioner

Wayne Buchhorn

Maritime Border Command (MBC)

RADM Peter Laver,

Asst. Com

Strategic Border Command

Clive Murray

Detention and Offshore Operations Command

Enforcement Command

Mark Antill A/g

Commander OSB JAFT

AVM Stephen

RAN m. Kingsley Osborne

Woodford-Smith

Deputy Commander MBC

Jo Crooks

Commander

Operations

Stephen Alexander

Detention Operations

Vanessa Holben

ABF Investigations

Matt Stock A/g

Operation Sovereign Borders Joint Agency Task Force (OSB JATF)

Deputy Commander Chief Superintendent

Tharanie Vithanage

Chief of Operations

AIRCDRE Andrew (Jake) Campbell

Offshore Operational Coordination

Special Investigations and Coordination

David Whitfield Sharon Huey

Field and Removal Operations

Robyn Miller

Strategic Border Command

Clive Murray

Regional Regional

Commander Commander

Regional Commander

Regional Commander

Regional Commander

NSW VIC/TAS QLD WA Central

Tim Fitzgerald James Watson Terry Price Rod O’Donnell Rachel Houghton

Chief Superintendent SA

Brett Liebich

OVERVIEW 19 18

LEGISLATION

The Department administers the following Acts, which provide a legislative framework for its functions and services: • Australian Border

Force Act 2015 • Australian Citizenship Act 2007 • Australian Citizenship

(Transitionals and Consequentials) Act 2007 • Commerce (Trade Descriptions) Act 1905 • Customs Act 1901,

other than Part XVB and Part XVC • Customs Licensing Charges Act 1997 • Customs Securities

(Penalties) Act 1981 • Customs Tariff Act 1995 • Customs Undertakings

(Penalties) Act 1981 • Immigration (Guardianship of

Children) Act 1946 • Import Processing Charges Act 2001 • Maritime Powers Act 2013 • Migration Act 1958 • Migration Agents

Registration Application Charge Act 1997

• Migration (Health Services) Charge Act 1991 • Migration (Sponsorship Fees) Act 2007 • Migration

(Visa Application) Charge Act 1997 • Narcotic Drugs Act 1967, sections 12 and 22 and

subsection 24(2), and so much of the remaining provisions of that Act (other than sections 9, 10, 11, 13, 19 and 23 and subsection 24(1)) as relate to powers and functions under those sections • Passenger Movement

Charge Act 1978 • Passenger Movement Charge Collection Act 1978 • Psychotropic

Substances Act 1976

Fifteen portfolio bills were introduced to the Australian Parliament during 2016-17. In that period, seven bills passed both Houses of Parliament and became Acts upon Royal Assent being given. Further, 23 Regulations were registered and 70 additional legislative instruments were made.

The Amendment Acts, Regulations and other legislative instruments are available on the Federal Register of Legislation1, administered by the Office of Parliamentary Counsel.

OVERVIEW 19 18

1 www.legislation.gov.au

20

OFFICE AND POST LOCATIONS

As a global organisation, the Department brings together 13,758 staff based primarily in Australia and in 52 locations around the world. As of 30 June 2017, the Department’s Office and Post locations were:

Figure 2: Office and post locations at 30 June 2017

Regional Directorates

ACT and Regions

Adelaide

Brisbane

Cairns

Darwin

Hobart

Melbourne

Parramatta

Perth

Sydney

Thursday Island

OVERVIEW 21

20

Embassies

Amman Jakarta

Ankara Madrid

Athens Manila

Bangkok

Beijing

Beirut

Mexico City

Moscow

Phnom Penh

Belgrade

Berlin

Santiago

Seoul

Brasilia Tehran

Brussels Tel Aviv

Buenos Aires

Cairo

Tokyo

Vienna

Dili Vientiane

Hanoi

Harare

Washington DC

Yangon

Consulates

Auckland

Dubai

Guangzhou

Ho Chi Minh City

Hong Kong

Shanghai

High Commissions

Apia

Colombo

Dhaka

Islamabad

Kuala Lumpur

London

Nairobi

New Delhi

Nuku’alofa

Ottawa

Port Louis

Port Moresby

Pretoria

Singapore

Suva

Other

Geneva

National Office

OFFICE AND POST LOCATIONS

OVERVIEW 21

Outcome and programme structure

Purposes are defined by section 8 of the Public Governance, Performance and Accountability Act 2013 as ‘the objectives, functions or role’ of an entity. For 2016−17, the Department worked to achieve three outcomes through the delivery of 11 programmes. The link between the outcome and programme

framework in the Portfolio Budget Statements 2016-17 and the Portfolio Additional Estimate Statements for 2016−17 and the purpose statements in Corporate Plan 2016−17 are set out in Figure 3. The Department’s annual performance statement, outlining the delivery of this framework, is at Part 2 of this report.

OVERVIEW 23 22

Figure 3: Outcome and programme structure 2016-17 Corporate Plan 2016-17 Purpose 1: Manage the movement of people and goods to contribute to a strong economy

SPM 1.1: Australia’s visa programmes are responsive to the needs of the economy SPM 1.2: The collection of the border revenue is managed and enhanced SPM 1.3: Seamless border management facilitates the flow of legitimate travellers and goods SPM 1.4: Effective partnerships both within and outside Australia build a strong economy

Purpose 2: Manage the movement and stay of people to contribute to a cohesive society

SPM 2.1: Australia’s visa programmes provide a strong foundation for social cohesion SPM 2.2: Australian citizenship is valued SPM 2.3: Australia contributes to the global management of refugees and displaced populations SPM 2.4: The integrity of visa programmes is strengthened by effective regulatory

and enforcement activities

Purpose 3: Manage the border to contribute to a safer, secure Australia

SPM 3.1: Threats are detected before, at and after the border SPM 3.2: The border is strengthened through the control and surveillance of maritime domain SPM 3.3: Collaboration with partners within and outside Australia improves border security

Programme 1.1: Border Enforcement

Programme 1.2: Border Management

Programme 1.3: Onshore Compliance and Detention

Programme 1.4: IMA Offshore Management

Programme 1.5: Regional Cooperation

Programme 2.2: Citizenship

Programme 2.2: Migration

Programme 2.2: Visas

Programme 2.2: Refugee and Humanitarian Assistance

Programme 3.1: Border Revenue Collection

Programme 3.2: Trade Facilitation and Industry Engagement

Outcome 1: Protect Australia’s sovereignty, security and safety by managing its border, including through managing the stay and departure of all non-citizens

Outcome 2: Support a prosperous and inclusive society and advance Australia’s economic interests through the effective management of the visa and citizenship programmes and provision of refugee and humanitarian assistance

Outcome 3: Advance Australia’s economic interests through the facilitation of trade of goods to and from Australia and the collection of border revenue

Portfolio Budget Statements 2016-17

OVERVIEW 23 22

Annual performance statements

PART 2

STATEMENT BY THE ACCOUNTABLE AUTHORITY

26

PURPOSE 1: Manage the movement of people and goods to contribute to a strong economy

27

PURPOSE 2: Manage the movement and stay of people to contribute to a cohesive society

58

PURPOSE 3: Manage the border to contribute to a safer, secure Australia

86

PART 2: Annual performance statements

STATEMENT BY THE ACCOUNTABLE AUTHORITY

I

Michael Pezzullo, as the accountable authority of the Department of Immigration and Border Protection, present the annual performance statements of the Department of Immigration and Border Protection for the period of 1 July 2016 to 30 June 2017, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the Department, and comply with subsection 39(2) of the PGPA Act.

PURPOSE 1: MANAGE THE MOVEMENT OF PEOPLE AND GOODS TO CONTRIBUTE TO A STRONG ECONOMY

Michael Pezzullo Accountable authority 18 September 2017

ANNUAL PERFORMANCE STATEMENT 27 26

PURPOSE 1: MANAGE THE MOVEMENT OF PEOPLE AND GOODS TO CONTRIBUTE

TO A STRONG ECONOMY

Table 1: Purpose 1 performance criteria

This Purpose encompasses:

Corporate Plan Strategic Performance Measure 1.1: Australia’s visa programmes 2016−17 are responsive to the needs of the economy

Strategic Performance Measure 1.2: The collection of border revenue is managed and enhanced

Strategic Performance Measure 1.3: Seamless border management facilitates the flow of legitimate travellers and goods

Strategic Performance Measure 1.4: Effective partnerships both within and outside Australia build a strong economy

Portfolio Budget Outcome 1: Protect Australia’s sovereignty, Program 1.1: Border Enforcement Statements 2016−17 security and safety by managing its border, including through managing the stay and Program 1.2: Border Management

departure of all non-citizens.

Outcome 2: Support a prosperous and inclusive Program 2.2: Migration society, and advance Australia’s economic interests through the effective management of Program 2.3: Visas

the visa and citizenship programs and provision of refugee and humanitarian assistance.

Outcome 3: Advance Australia’s economic Program 3.1: Border interests through the facilitation of the trade Revenue Collection of goods to and from Australia and the collection

of border revenue.

Program 3.2: Trade Facilitation and Industry Engagement

ANNUAL PERFORMANCE STATEMENT 27 26

28

The Department contributed to a strong Australian economy during 2016−17 through its management of temporary entrant and permanent migration programmes, and its facilitation and support for legitimate international trade and travel, ensuring Australia

remained an attractive destination. This was further supported through the effective collection of border-related revenue in the form of customs duty, visa application charges, other taxes, and other non-taxation revenue. The delivery of this purpose was

assisted by collaboration with partner agencies (including the Department of Foreign Affairs and Trade (DFAT), Austrade, and the Australian Taxation Office), and with Australian industry, international organisations and foreign countries.

ANNUAL PERFORMANCE STATEMENT 29 28

28

Figure 4: Purpose 1 performance snapshot2

REVENUE COLLECTED

$15.6b customs duty, passenger movement charges and import processing charges

$2b visa application charges

GOODS INSPECTED

58.5m international mail items3

85k sea cargo

PEOPLE

8.4m temporary visas granted

5.3m visitor visas

1.9m special category NZ visas

352k crew and transit visas

343k student visas

211k working holiday maker visas

145k other temporary resident visas

87k skilled temporary resident visas

4k other temporary visas

43.7m travellers crossed the Australian border4

40.8m air travellers 2.9m sea travellers 24.2m travellers processed using automated systems

2 Exact figures a vailable at Years at Glance table on page 254 and the Results Table on pages 33-111. 3 The number of inspections r eported is calculated from an algorithm comprising the total amount of international mail items received (reported by Australia Post) and inspection percentages for each targeted risk profile, defined by the International Mail Intervention Strategy. Due to the high volume of items received, individual inspections are not recorded. The number of detections

is recorded within the Detained Goods Management System. 4 All travellers numbers include passengers and crew.

ANNUAL PERFORMANCE STATEMENT 29 28

SPM 1.1 AUSTRALIA’S VISA PROGRAMMES ARE RESPONSIVE TO THE NEEDS OF THE ECONOMY

Analysis

During 2016-17, Australia’s visa programmes contributed significantly to the economy, society and the labour market, with the Department granting a record 8,411,187 temporary visas and 183,608 permanent visas within its Migration Programme. For detail on the Humanitarian Programme please refer to SPM 2.3.

Temporary visas once again showed strong growth across almost all categories. In particular, the visitor programme continued to strongly support global tourism, business travel and the domestic economy. The Department managed a record number of visitor visas in 2016-17, with more than five million visas granted. This was an increase of 11.4 per cent on 2015-16. In achieving this outcome the Department tested a range of innovations, including a trial of a 10-year validity visitor visa to reduce red

tape for frequent travellers from China, a trial of a ‘fast track’ visitor visa processing service, and an online visitor visa lodgement service in Chinese, all of which have been well received.

The student visa programme continued to facilitate continuing growth in the international education sector. In 2016-17, 343,035 student visas were granted, a 10.4 per cent increase on the previous year. Student visa grants have increased on average by 4.5 per cent a year over the past decade. A significant achievement in the 2016−17 programme year was the implementation of the Simplified Student Visa Framework (SSVF) on 1 July 2016. This facilitates the sustainable growth of Australia’s international education sector by simplifying the student visa application process for genuine students, reducing red tape for education

providers and delivering a more targeted approach to immigration integrity. The SSVF is an important component of the Australian Government’s first National Strategy for International Education5. SSVF allowed the Department to manage ongoing growth in the student visa programme without compromising integrity. Feedback from stakeholders has been positive. More broadly, the Department continues to engage with key international education stakeholders to support a long-term sustainable student sector. For example, the Department convenes the Education Visa Consultative Committee, a quarterly forum focused on the student visa programme and international education issues.

Where temporary skilled visas are concerned, the number of Temporary Work (Skilled) (subclass 457) visa holders in Australia at

5 www.internationaleducation.gov.au/International-network/Australia/InternationalStrategy/Pages/National-Strategy.aspx

ANNUAL PERFORMANCE STATEMENT 31 ANNUAL PERFORMANCE STATEMENT 31 30 30

30 June 2017 fell for the third consecutive year, consistent with the Government’s ongoing agenda to prioritise Australian workers. New subclass 457 visa restrictions were introduced in 2016, including a reduction from 90 days to 60 days in the time that a subclass 457 visa holder can stay after their employment has ended. Additional interim reforms were announced in April 2017 alongside an announcement of the planned abolition of the 457 visa in March 2018 and its replacement with a new Temporary Skills Shortage visa. The interim 457 reforms are being implemented in four phases. The first tranche was implemented from 19 April 2017 with the creation of two new occupations lists, the Short Term Skilled Occupation List (STSOL) and the Medium and Long-Term Strategic Skills List (MLTSSL), which reduced the number

of occupations available for 457 applications.

The size and composition of Australia’s permanent Migration Programme is set each year and the Department consults widely across the Australian Government and state and territory governments when planning the programme. In 2016-17, the Skill stream made up two thirds of the Migration Programme, and provided economic benefits by targeting migrants with investment or entrepreneurial capability or who have skills or abilities needed in Australia’s labour market.

The total permanent Migration Programme outcome was 183,608 places within the planning level of 190,000. This consisted of 123,567 places delivered in the Skill stream, 56,220 places delivered in the Family stream, 421 places

delivered in the Special Eligibility stream and 3400 Child places.

The Continuous Survey of Australia’s Migrants (CSAM) demonstrates the effectiveness of skilled visa programmes and informs future planning. Results from the 2016 survey show the overall employment rate for skilled primary visa holders at their 18-month settlement period was 93.4 per cent. The Productivity Commission Inquiry Report on Migrant Intake into Australia6, publicly released on 12 September 2016, found that the current immigration system has generally served the interests of the broader community well.

When delivering temporary and permanent visa programmes, the Department must balance client, economic and trade interests with its national

6 www.pc.gov.au/inquiries/completed/migrant-intake/report

ANNUAL PERFORMANCE STATEMENT 31 30 ANNUAL PERFORMANCE STATEMENT 31

security and community protection responsibilities. The Department continues to focus on visa programme integrity and community protection through the visa cancellation and visa refusal caseloads. In 2016−17 the Department refused 637 visa applications and cancelled 1837 visas on security or character grounds, an increase on the previous programme year.

Increasing complexity and risk, resource pressures, and lodgement volumes present challenges in many caseloads. Recognising this, the Department has changed the way it provides information to clients, moving to monthly reporting of average global processing times. These provide more meaningful processing timeframes for clients and more accurately reflect the broader challenges

and constraints associated with visa and citizenship programme delivery. Feedback received from clients, external stakeholders and departmental staff about this initiative has been overwhelmingly positive because it has increased transparency and provided clients with current processing times rather than aspirational service standards.

ANNUAL PERFORMANCE STATEMENT 33 32

Results

Table 2: SPM 1.1 - Australia’s visa programmes are responsive to the needs of the economy

KPI 1.1.1 Migration planning levels consider the needs of the economy

Target: Source:

No target Corporate Plan 2016−17 p. 27.

Result: Planning levels for the 2016−17 Migration Programme were considered in consultation with key economic stakeholders including the Treasury, the Department of the Prime Minister and Cabinet, the Department of Finance, the Department of Industry, Innovation and Science, the Department of Employment, and state and territory governments, taking into account the needs of the Australian economy. As a result, two-thirds of the permanent migrant intake in 2016-17 was allocated to migrants who hold visas that provide economic advantage either by being skilled in occupations in medium to long-term demand or through business and investment in Australia.

KPI 1.1.2 The skilled component of the managed migration programme is delivered within planning levels set by the Government for each category

Target: Source:

Deliver up to planning levels Corporate Plan 2016−17 p. 27.

Program 2.2 PBS p. 44.

Result: The Department granted over 183,600 permanent places to new migrants in 2016-17 to meet Australia’s skill and family needs. Of the permanent places granted, skill stream visas totalled more than 123,500.

KPI 1.1.3 Deliver a range of temporary and permanent visa programmes that support Australia’s economic needs

Target: Source:

No target Corporate Plan 2016−17 p. 27.

Result: The Department delivered the Migration Programme within planning levels (see KPI 1.1.2). Targets were met for visa grants against KPIs in 1.1.4. Visa and citizenship average global processing times have been publically available on the Department’s website since 13 March 2017. Feedback from clients, external stakeholders, and internal staff about this initiative has been positive overall because it has increased transparency and provided clients with current processing timeframes rather than aspirational service standards. Status-related phone enquiries to the onshore service centre have also noticeably reduced since publication. The Department continues to monitor feedback, trends and fluctuating processing times each month. Noticeable changes in global processing times as at 30 June 2017 included Working Holiday (subclass 417) visa processing times for the 75th percentile decreasing from 13 days to 11 days, for the 457 visa decreasing from 78 days to 71 days, and the Temporary Graduate (subclass 485) visa from 86 days to 69 days.

ANNUAL PERFORMANCE STATEMENT 33 32

Table 2: SPM 1.1 - Australia’s visa programmes are responsive to the needs of the economy

KPI 1.1.4 Number of visas granted: 1.1.4.1 visitor visas7 1.1.4.2 student visas 1.1.4.3 457 visas 1.1.4.4 other temporary visas that respond to the needs of the economy

Target: Source:

1.1.4.1 visitor visas - 4.5 million Corporate Plan 2016−17 p. 28.

1.1.4.2 student visas - 300,000 Program 2.3 PBS p. 46.

1.1.4.3 457 visas - 85,000 1.1.4.4 other temporary visas that respond to the needs of the economy - no target.

Result: 1.1.4.1 visitor visas - 5,345,684 1.1.4.2 student visas - 343,035 1.1.4.3 457 visas - 87,580 1.1.4.4 other temporary visas that respond to the needs of the economy - 404,777

KPI 1.1.5 Percentage of visa decisions made within service standards: 1.1.5.1 visitor visas 1.1.5.2 student visas 1.1.5.3 457 visas 1.1.5.4 other temporary visas that respond to the needs of the economy

Target: Source:

1.1.5.1 visitor visas - 75% Corporate Plan 2016−17 p. 28.

1.1.5.2 student visas - 70% Program 2.3 PBS p. 46.

1.1.5.3 457 visas - 75% 1.1.5.4 other temporary visas that respond to the needs of the economy - 75%

Results: 1.1.5.1 visitor visas - 90.5% 1.1.5.2 student visas - 24.6%8 1.1.5.3 457 visas - 73.8% 1.1.5.4 other temporary visas that respond to the needs of the economy - 93.5%

KPI 1.1.6 Finalisation9 of visa decisions increases proportionally with increase in visa applications: 1.1.6.1 visitor visas 1.1.6.2 student visas 1.1.6.3 457 visas

Target: Source:

No target Corporate Plan 2016−17 p. 28.

Result: 1.1.6.1 visitor visas - 99.3% 1.1.6.2 student visas - 100.3%10 1.1.6.3 457 visas - 89.8%

7 Figure includes auto-grants and Electronic Travel Authorities (ETAs). 8 Under the SSVF, implemented on 1 July 2016, the new Student (subclass 500) visa does not have a service standard. In relation t

o this KPI, the only student visas that could be measured against a service standard were repealed subclasses 570 to 576 where applications for these subclasses were lodged before 1 July 2016 and finalised in 2016-17. 9 Refers to the grant or refusal of a visa application. 10 This result indicates that more student visa applications were finalised in 2016-17 than were received in this period.

This is bec ause there was an increase in student visa applications received in May and June 2016 that were then finalised in 2016-17.

ANNUAL PERFORMANCE STATEMENT 35 34

Table 2: SPM 1.1 - Australia’s visa programmes are responsive to the needs of the economy

KPI 1.1.7 Migration and temporary entry programmes do not increase risks to the safety of the Australian community

Target: Source:

No target Corporate Plan 2016−17 p. 28.

Program 2.2 PBS p. 44.

Results: The Department actively screened and assessed health requirements as part of the visa application process. The Department also focused on visa programme integrity and community protection through the visa cancellation and visa refusal caseloads, and delivered an increase in this year’s programme outcome over last year.

KPI 1.1.8 The employment rate of surveyed skilled primary applicant migrants 6 months and 18 months after arrival/visa grant, as reported in the Continuous Survey of Australia’s Migrants

Target: Source:

At 6 months - ≥85% Corporate Plan 2016−17 p. 28.

At 18 months - ≥90%

Result: At 6 months - 88.4% At 18 months - 93.4%

KPI 1.1.9 Employment outcomes of surveyed skilled primary applicant migrants of Skill Level 311 or higher, at 18 months after arrival/visa grant, as reported in the Continuous Survey of Australia’s Migrants

Target: Source:

≥75% Corporate Plan 2016−17 p. 28.

Result: 76.5%

KPI 1.1.10 Employment characteristics of surveyed Skill stream primary applicants 18 months after arrival/visa grant as reported in the Continuous Survey of Australia’s Migrants: 1.1.10.1 percentage managers 1.1.10.2 percentage professionals 1.1.10.3 percentage technicians and trade workers

Target: Source:

1.1.10.1 percentage managers - ≥15% Corporate Plan 2016−17 p. 28.

1.1.10.2 percentage professionals - ≥50% 1.1.10.3 percentage technicians and trade workers - ≥15%

Result: 1.1.10.1 percentage managers - 17.9% 1.1.10.2 percentage professionals - 55.6% 1.1.10.3 percentage technicians and trade workers - 17.1%

11 Occupations at Skill Level 3 have a level of skill commensurate with one of the following: • NZ Register Level 4 qualification • AQF Certificate IV or • AQF Certificate III including at least two years of on-the-job training. At least three years of relevant experience may substitute for the formal qualifications listed above.

In s

ome instances, relevant experience and/or on-the-job training may be required in addition to the formal qualification.

ANNUAL PERFORMANCE STATEMENT 35 34

36

SPM 1.1 Case study

MANAGING STUDENT VISA PROGRAMME GROWTH

I nternational education is one of Australia’s largest export sectors, generating an income of $20.3 billion in 2016. At 30 June 2017, 443,798 international student visa holders were studying in Australia, with China, India, Nepal, Vietnam and South Korea being the largest source countries.

The 2016−17 programme year information have all contributed to saw an increase in international increased efficiencies and enhanced students applying to study in flexibility in the programme. Australia. There were 374,294 applications lodged during this In addition, a single external period, an increase of over 4.5 immigration risk framework, based per cent when compared with on a combination of a student’s the previous programme year. nationality and their intended This significant increase reflects Australian education provider, the efforts Australia has made to guides students about the evidence attract international students. required when lodging their visa

application. By giving students

The Department finalised 12 more individualised information 379,982 applications, up by nearly about the documents they need 9.0 per cent when compared with to provide, the Department the 2015−16 programme year. The can finalise applications more Department also granted 10.4 per quickly, and without having to cent more student visas compared request additional information. with the previous programme year.

Despite positive growth, there are

Reform and deregulation of the challenges in maintaining high student visa programme, introduced levels of visa compliance to ensure on 1 July 2016, enabled the that the integrity of the student Department to manage this growth visa programme is not undermined. while maintaining the programme’s The Department continues to integrity. A simpler framework, refine settings to facilitate genuine refined regulatory criteria, online students without compromising lodgement and better targeted risk the programme’s integrity.

12 This result indicates that more student visa applications were finalised in 2016-17 than were received in this period. This is because there was an increase in student visa applications received in May and June 2016 that were than finalised in 2016-17.

ANNUAL PERFORMANCE STATEMENT 37

36 ANNUAL PERFORMANCE STATEMENT 37

SPM 1.2 THE COLLECTION OF BORDER REVENUE IS MANAGED AND ENHANCED

Analysis

The Department contributed significantly to the continued health of the Australian economy in 2016−17 by collecting revenue on behalf of the Government. During the period under review, the Department collected $17,664 million in revenue in the form of customs duty, visa application charges and import processing charges and passenger movement charges.

The Department is committed to ensuring that the application of various border fees aligns with the Government’s fiscal and policy objectives, as well as preventing revenue evasion and non-compliance. The Department strives to ensure that the revenue collection process is not complex or arduous, so

that compliant entities can easily adhere to procedures and are not deterred from conducting trade across the Australian border.

As the Department focuses on streamlining systems and processes for revenue collection, concessions and exemptions, it also ensures that client service standards are maintained. The Department aims to satisfy clients by providing quick reimbursements and applying limited imposts. During the reporting period, the Department processed 85 per cent of drawbacks within the Department’s client service standard of 30 days of receipt of all necessary information. (The Duty Drawback Scheme enables exporters to obtain a refund of customs duty paid

on imported goods where those goods will be treated, processed, or incorporated in other goods for export, or are exported unused since importation.13) While this result is below the target of 90 per cent, performance improved slightly (1 percentage point) from 2015−16. The shortfall can be attributed to a rise in the volume of complex claims, which increased processing times per claim and necessitated the allocation of additional resources. However, 99 per cent of refunds delivered were within these same client service standards and well above the target of 90 per cent. Both results give the Department confidence that current refund processes are accessible and do not hinder the flow of trade.

13 www.border.gov.au/Busi/cargo-support-trade-and-goods/exporting-goods/duty-drawback-scheme

ANNUAL PERFORMANCE STATEMENT 39 38

There was an increase this financial year in the number of high-volume and high-value complex drawback claims. An increase in these types of exports will contribute to Australia’s economic growth. The Australian Border Force (ABF) will continue to encourage these types of exports by streamlining the relevant trade process and industry engagement.

In 2016−17 the Department engaged the international trade sector on border policies and programmes to enhance rates of voluntary compliance. This had a positive impact, as the number of customs compliance infringement notices declined by 3.0 per cent compared with the previous financial year.

The decrease was within expected levels of variance, given the actual volume of infringements issued. This complements the additional effort the Department has dedicated to influencing behavioural change over time by actively engaging the sector to improve compliance and increasing focus on alternative approaches to working with industry through initiatives such as the Australian Trusted Trader (ATT) Programme.

Enabling higher rates of compliance facilitates the flow of trade, which in turn generates more revenue collection at the border. The ATT has improved compliance from trusted entities. For example, when a trader applied for ATT accreditation, the

ABF identified compliance issues that involved the inappropriate use of exempt lines for certain export products. The company asked the ABF to help resolve the issues, including a discussion with their broker. By working with the business, issues around quality control and third-party engagement were identified. As a result, the company introduced reforms to training and quality assurance in the export side of the business. By working in partnership with the ABF, the business improved compliance and gained ATT accreditation.

ANNUAL PERFORMANCE STATEMENT 39 38

Results

Table 3: SPM 1.2 - The collection of border revenue is managed and enhanced

KPI 1.2.1 Levels of significant revenue collected against budget: 1.2.1.1 Visa Application Charge 1.2.1.2 Customs duty 1.2.1.3 Import Processing Charge 1.2.1.4 Passenger Movement Charge

Target: Source:

1.2.1.1 Visa Application Charge14 - $2,060.5 million Corporate Plan 2016−17 p. 29. 1.2.1.2 Customs duty15 - $14,259.2 million Program 3.1 PBS p. 51

1.2.1.3 Import Processing Charge - $399.4 million 1.2.1.4 Passenger Movement Charge - $984.6 million

Result: 1.2.1.1 Visa Application Charge - $2,045.5 million 1.2.1.2 Customs duty - $14,195.2 million 1.2.1.3 Import Processing Charge - $394.9 million 1.2.1.4 Passenger Movement Charge - $1,028.4 million

KPI 1.2.2 Percentage of refunds under the Refund Scheme that are delivered in accordance with client service standards

Target: Source:

90% Corporate Plan 2016−17 p. 29.

Program 3.1 PBS p. 52.

Result: 99%

KPI 1.2.3 Percentage of refund appeals decided in favour of the Commonwealth

Target: Source:

No target Corporate Plan 2016−17 p. 29.

Result: 100%

14 Target figure from Corporate Plan 2016-17, p. 29 and Program 3.1 in the PBS 2016-17, p. 60 was upda ted to the target figure in PAES 2016-17, p. 32 15 Target figure from Corporate Plan 2016-17, p. 29 and Program 3.1 in the PBS 2016-17, p. 59

was upda ted to the target figure in PAES 2016-17, p. 32

ANNUAL PERFORMANCE STATEMENT 41 40

Table 3: SPM 1.2 - The collection of border revenue is managed and enhanced

KPI 1.2.4 Percentage of drawbacks delivered in accordance with client service standards

Target: Source:

90% Corporate Plan 2016−17 p. 29.

Program 3.1 PBS p. 52.

Result: 85%

KPI 1.2.5 Number of infringement notices

Target: Source:

No target Corporate Plan 2016−17 p. 29.

Program 3.1 PBS p. 52.

Results: 255

ANNUAL PERFORMANCE STATEMENT 41 40

42

SPM 1.2 Case study

DETECTION OF CIGARETTES HIGHLIGHTS ABF’S ABILITIES

I n August 2016 the Australian Border Force (ABF) detected more than four million illicit cigarettes after they had been shipped to Australia from Korea. The cigarettes had a potential street value of up to $3.5 million and the total amount of duty evaded was $2.2 million.

The contents of a container originating in Korea were declared as toilet seat covers and trash cans. The ABF subsequently led an operation in conjunction with the Australian Federal Police (AFP) to identify the alleged importer. A 43-year-old Korean national was arrested after a search warrant was executed at a residential property in Sydney. The Korean national was charged with Customs Act offences in relation to smuggling and possession of illicit tobacco products.

This seizure followed the detection of 2.5 tonnes of illicit cigarettes when four Korean nationals were arrested in Sydney in June 2016, and the seizure of 13 million smuggled cigarettes in Melbourne in April that year.

These detections of illicit tobacco imports demonstrate the ABF’s ability to successfully collect and manage revenue at the border, including detecting attempts at revenue evasion and finding those allegedly responsible.

ANNUAL PERFORMANCE STATEMENT 43

42 ANNUAL PERFORMANCE STATEMENT 43

SPM 1.3 SEAMLESS BORDER MANAGEMENT FACILITATES THE FLOW OF LEGITIMATE TRAVELLERS AND GOODS

Analysis

The Department continues to facilitate and manage ever-growing volumes of travellers and goods in a complex global security environment. In a competitive global market for tourists, investors and skilled workers, innovative approaches such as the Australian Trusted Trader (ATT) Programme and digital platforms such as SmartGates are needed to manage demand. To meet these challenges, the Department has extended its traditional focus from managing threats at the physical border to managing a border continuum ( before, at, and after the border). This shift means taking an intelligence-led, risk-based, targeted approach to threats to support a seamless flow of travellers and goods across Australia’s border.

The Department is committed to expediting the flow of legitimate trade by assisting trusted entities through the ATT Programme. By removing red

tape for trusted traders at the border, the Department facilitates higher and more frequent volumes of trade and promotes consumer confidence. Innovative schemes that facilitate the flow and volume of goods are important to Australia’s economy through the profits that trade creates. The Department ensures that the ATT Programme benefits a broad range of Australian businesses by targeting a mix of small and medium sized businesses, including those from regional Australia, as well as high-value, high-volume companies. Under the ATT Programme, a mutual recognition agreement (MRA) was signed with New Zealand in July 2016, and further MRAs with Canada, South Korea and Hong Kong are expected to be implemented by the end of 2017. These, and other MRAs which have been proposed, are expected to encourage more traders to join the programme because they will have the added benefit

of using the seamless trade model for trusted entities between signatory countries.

The Department is also committed to increasing the levels of voluntary compliance by those involved in the reporting, movement and storage of goods, as this reduces compliance costs for both the Department and industry. In the 2016-17 financial year, the Department shifted further from a general transactional monitoring approach to a more concentrated focus on high-risk entities and cargo movements. Encouragingly, the level of compliance in reporting on the security of goods under customs control was relatively high. Over the course of the financial year only 3 per cent of all cargo control compliance checks identified a significant breach. Conversely, the Department observed a notable increase in non-compliant import declarations for goods. Under the Compliance Monitoring

ANNUAL PERFORMANCE STATEMENT 45 44

Programme for 2016-17 there was a 16.7 per cent increase in non-compliant import declarations. Inaccurate reporting or deliberately false statements seriously undermine our border controls, and the increase in non-compliant reporting is reflected in the significant number of financial penalties issued under the Infringement Notice Scheme for making false or misleading statements. The Department will continue its complementary regime of infringements and education activities to build compliant behaviour over the long term.

During 2016-17, the Department effectively managed increased international traveller volumes, brought about by the increased capacity and range of passenger aircraft and vessels, to expedite the efficient handling of legitimate passengers. The Department processed 21.99 million international passengers and crew arrivals,

a 10.6 per cent increase over the forecast target. Of these, 91.2 per cent of passengers were processed within 30 minutes of joining the inwards queue—a result only slightly below the target of 92.0 per cent and an improvement over the previous financial year (87.8 per cent). In addition, while traveller volumes increased, customer satisfaction with the primary line improved to 98 per cent from 96 per cent in the previous reporting period.

Traveller numbers continue to grow at more than 5 per cent per annum. The number of travellers is forecast to increase by almost 10 million (22 per cent) in the next four years, rising to over 53 million by 2020-21, creating a substantial pressure on the border. The rollout of new technologies, including streamlined systems for trusted traders and travellers, will enable the Department to better manage this pressure. By increased

efficiency in processing, the Department aims to create a seamless flow of legitimate trade and travel. Increasing volumes of foreign travellers will contribute to Australia’s economic growth and revenue.

ANNUAL PERFORMANCE STATEMENT 45 44

Results

Table 4: SPM 1.3 - Seamless border management facilitates the flow of legitimate travellers and goods

KPI 1.3.1 Number of declarations finalised: 1.3.1.1 import 1.3.1.2 export

Target: Source:

1.3.1.1 import - 4.0 million Corporate Plan 2016−17 p. 30.

1.3.1.2 export - 1.50 million

Result: 1.3.1.1 import - 3.9 million 1.3.1.2 export - 1.35 million

KPI 1.3.2 Number of imported sea cargo reports

Target: Source:

3.2 million Corporate Plan 2016−17 p. 30.

Result: 3,180,592

KPI 1.3.3 Number of tariff classification rulings completed

Target: Source:

2,900 Corporate Plan 2016−17 p. 30.

Program 1.2 PBS p. 32.

Result: 2,533

KPI 1.3.4 Number of valuation and origin rulings completed

Target: Source:

105 Corporate Plan 2016−17 p. 30.

Program 1.2 PBS p. 32.

Result: 741

KPI 1.3.5 Percentage of tariff classification, valuation and rules of origin advices completed within service standards

Target: Source:

85% Corporate Plan 2016−17 p. 30.

Results: 85%

ANNUAL PERFORMANCE STATEMENT 47 46

Table 4: SPM 1.3 - Seamless border management facilitates the flow of legitimate travellers and goods

KPI 1.3.6 Percentage of import declarations assessed pre-clearance through the general monitoring programme that are compliant

Target: Source:

86% Corporate Plan 2016−17 p. 30.

Program 1.2 PBS p. 32.

Result: 72%

KPI 1.3.7 Percentage of export declarations assessed pre-clearance through the general monitoring programme that are compliant

Target: Source:

59% Corporate Plan 2016−17 p. 30.

Program 1.2 PBS p. 32.

Result: 60%

KPI 1.3.8 Participants in the Australian Trusted Trader Programme include businesses considered as small-medium enterprise; regional Australian; service providers; and large value/volume traders

Target: Source:

No target Corporate Plan 2016−17 p. 30.

Program 3.2 PBS p. 54.

Results: The ATT Programme has targeted high value/high volume traders, small-medium enterprises and rural and regional based enterprises. Just under 20 per cent are based in regional areas, and just over 15 per cent are service providers.

KPI 1.3.9 By 2020, participants in the Australian Trusted Trader Programme will be entities that comprise 50% of value and 30% of volume of all two way trade

Target: Source:

To be reported from 2019-20 Corporate Plan 2016−17 p. 30.

Result: 36 entities were accredited as Australian Trusted Traders at 30 June 2017, totalling $37,222,070,495 or 5.63 per cent of the total value of two-way trade, and 1.43 per cent of the total two-way trade volume. Fifty per cent of these are high-value high-volume traders.

ANNUAL PERFORMANCE STATEMENT 47 46

Table 4: SPM 1.3 - Seamless border management facilitates the flow of legitimate travellers and goods

KPI 1.3.10 Percentage of customs compliance activities identifying a significant breach: 1.3.10.1 customs cargo control checks16 1.3.10.2 targeted declarations assessed pre-clearance

Target: Source:

1.3.10.1 customs cargo control checks16 - 24% Corporate Plan 2016−17 p. 30. 1.3.10.2 targeted declarations assessed pre-clearance - 16% Program 1.2 PBS p. 32.

Result: 1.3.10.1 customs cargo control checks - 3.0% 1.3.10.2 targeted declarations assessed pre-clearance - 16.0%

KPI 1.3.11 Number of international passengers (air and sea) and crew processed: 1.3.11.1 arrivals 1.3.11.2 departures

Target: Source:

1.3.11.1 arrivals - 19.878 million Corporate Plan 2016−17 p. 30.

1.3.11.2 departures - 19.644 million

Result: 1.3.11.1 arrivals - 21.990 million 1.3.11.2 departures - 21.740 million

KPI 1.3.12 Percentage of passengers processed within 30 minutes of joining the inwards queue

Target: Source:

92% Corporate Plan 2016−17 p. 30.

Program 1.1 PBS p. 30.

Result: 91%

KPI 1.3.13 Percentage of the total passenger and crew arrivals refused immigration clearance at airports and seaports

Target: Source:

<0.015% Corporate Plan 2016−17 p. 30.

Result: 0.018%

16 The 24 per cent target was derived some years prior and cannot accurately be compared to current reporting because of changes to methodology, reporting practices and agency structures as a result of the transition from the former Australian Customs and Border Protection Service. The curr

ent reporting is intended to measure serious breaches encountered during physical control checks conducted at wharves, airports, depots, warehouses and cargo terminals. The current methodology used and the result reports (of around 3 per cent) is consistent with data recorded since the ABF was established in July 2015.

ANNUAL PERFORMANCE STATEMENT 49 48

Table 4: SPM 1.3 - Seamless border management facilitates the flow of legitimate travellers and goods

KPI 1.3.14 Traveller satisfaction with primary line services

Target: Source:

>95% Corporate Plan 2016−17 p. 30.

Program 1.1 PBS p. 30.

Result: 98%

KPI 1.3.15 Percentage of eligible passengers and crew processed using automated systems: 1.3.15.1 arrivals 1.3.15.2 departures

Target: Source:

1.3.15.1 arrivals - 50% Corporate Plan 2016−17 p. 30.

1.3.15.2 departures - 90%

Result: 1.3.15.1 arrivals - 57.43% 1.3.15.2 departures - 82.0%

ANNUAL PERFORMANCE STATEMENT 49 48

50

SPM 1.3 Case study

MODERNISING AUSTRALIA’S BORDER - SMARTGATES MAKE DEPARTURE EASY

T he $50 million roll-out of departures SmartGates was completed by the end of August 2016, with all 86 gates now in operation across nine of Australia’s international airports.

The successful roll-out delivers the Australian Government’s commitment to streamline border control processes and enhanced border protection capability at our international airports. Automating the departure process enables the ABF to meet the challenge posed by increasing traveller numbers, while allowing ABF officers to focus on travellers who pose a risk at the border.

Departures SmartGates use state-of-the-art biometric facial recognition technology to confirm a traveller’s identity, with one

SmartGate being able to process as many as 150 people per hour. There are 25 gates operational in Sydney, 18 in Melbourne, 12 in Brisbane, nine in Perth, six on the Gold Coast and in Adelaide, four in Darwin, and three in Cairns and in Canberra.

The departures SmartGates project is one of many initiatives helping to modernise Australia’s border procedures. The gates improve the ABF’s capacity to process increasing traveller volumes while maintaining the integrity of the border clearance process.

ANNUAL PERFORMANCE STATEMENT 51

50 ANNUAL PERFORMANCE STATEMENT 51

SPM 1.4 EFFECTIVE PARTNERSHIPS BOTH WITHIN AND OUTSIDE AUSTRALIA BUILD A STRONG ECONOMY

Analysis

The Department is Australia’s trusted global gateway. In 2016−17 the Department worked with stakeholders domestically and internationally to improve the flow of people and goods across the border. This involved outreach and engagement activities with key stakeholders such as international bodies, partner countries, industry, and Australian Government and state and territory agencies.

The Department’s industry engagement strategies and main consultative fora underpinned its cooperation with industry. The strategies and engagement framework, developed in consultation with industry stakeholders, provides an arrangement for the Department and industry to work together on a broad range of policy, operational and regulatory issues.

During 2016−17,

the Department’s stakeholder engagement activities included: • the Industry Summit

held on 31 October 2016, which brought together more than 300 senior industry and Australian Government representatives to discuss strategic immigration and border protection issues • chairing the National

Committee on Trade Facilitation (NCTF), the National Passenger Facilitation Committee and National Sea Passenger Facilitation Committee • meetings with peak

industry bodies such as the Customs Brokers and Forwarders Council of Australia (CBFCA), the Conference of Asia Pacific Express Carriers (CAPEC), the Freight

and Tr

ade Alliance, the Australian Airports Association, the Federal Chamber of Automotive Industries and Shipping Australia Ltd • Trusted Traders

collaborating directly with the ABF in fora and workshops on the design and policy direction of the Australian Trusted Trader (ATT) Programme

- Industry representatives were involved in the Trusted Trader Symposium launch (in August 2016), and contributed to programme development through the ATT Industry Reference Group • Tourism Visa Advisory

Group meetings to consult major tourism industry stakeholders • Education Visa Consultative Committee

ANNUAL PERFORMANCE STATEMENT 53 52

meetings to facilitate consultation with key international education sector stakeholders • Ministerial Advisory

Council on Skilled Migration (MACSM) meetings for discussion with industry, union and government representatives on skilled migration policy, including a review of the Consolidated Skills Occupations List • Skilled Migration

Officials Group meetings to facilitate consultation with state and territory government representatives on skilled migration policy • consultations with

business and industry representatives on the changes to the subclass 457 visa programme • seeking submissions from

industry on migration, visa and citizenship policy

• continued conversations and ad hoc meetings with national advisory groups, regional stakeholder groups and inter-departmental committees on immigration, citizenship, traveller, trade and customs policy.

The views gained through these activities will inform future policy planning and development, including work being completed to reform the visa, immigration, citizenship, traveller, trade and customs framework.

ANNUAL PERFORMANCE STATEMENT 53 52

Results

Table 5: SPM 1.4 - Effective partnerships both within and outside Australia build a strong economy

KPI 1.4.1 Percentage of tariff classification, valuation and rules of origin advices completed within service standards

Target: 85%

Source: Corporate Plan 2016-17 p. 31. Program 3.2 PBS p. 54.

Result: 85%

KPI 1.4.2 The multilateral views of relevant stakeholders are attained through outreach and engagement activities and inform the immigration and citizenship policy development planning process

Target: No target

Source: Corporate Plan 2016-17 p. 31.

Result: Between 1 July 2016 and 30 June 2017, the Department secured the views of numerous stakeholders during engagement activities, including: • the Industry Summit on 31 October 2016 where senior industry representatives gave their views

on migration and mobility matters • Tourism Visa Advisory Group meetings to consult major tourism industry stakeholders • Education Visa Consultative Committee meetings for consultations with key international education

sector stakeholders • Ministerial Advisory Council on Skilled Migration discussions with leading industry, union and government representatives on skilled migration policy, including a review of the Consolidated Skills Occupations List • Skilled Migration Officials Group meetings with state and territory government representatives on skilled

migration policy • 457 visa reform meetings to consult business and industry representatives on changes to the subclass 457 visa programme. The Department received responses to the following public discussion/position papers: • Review of the Temporary Skilled Migration Income Threshold of the Subclass 457 Programme - 4 March 2016 • Australia’s Humanitarian Programme 2016-17 - 27 March 2016 • Introducing a Temporary Visa for Parents - 31 October 2016 • Strengthening the test for Australian Citizenship - 20 April 2017 Discussions were held with national advisory groups, regional stakeholder groups and inter-departmental committees on immigration and citizenship policy. The views gained through these activities will inform future policy planning and development, including work to reform the visa, immigration, and citizenship framework to support a prosperous, secure, and modern Australia.

ANNUAL PERFORMANCE STATEMENT 55 54

Table 5: SPM 1.4 - Effective partnerships both within and outside Australia build a strong economy

KPI 1.4.3 Industry partners are involved in trade and customs policy development process though outreach and engagement activities

Target: No target

Source: Corporate Plan 2016-17 p. 31.

Result: The Department’s Industry Engagement Strategy 2020, launched at the Industry Summit on 19 November 2015, underpins engagement with industry. During 2016−17 the Department provided opportunities for two-way engagement for industry stakeholders with Government, including: • the Industry Summit, the Department’s annual industry engagement event. It brought together more than

300 senior industry and Australian Government representatives to discuss strategic immigration, border protection, and trade facilitation issues • regular meetings with peak industry bodies such as the CBFCA and CAPEC • meetings of the National Sea Passenger Facilitation Committee, involving relevant stakeholders from industry and government to develop and implement initiatives to improve international sea passenger movements and set out a vision for the future of sea travel. The forum recently agreed on a sea traveller vision and will begin work to develop a Trusted Operator Model to achieve this • meetings of the National Passenger Facilitation Committee, a decision-making body that provides a strategic forum for government agencies and industry to improve movements of passengers through airports while maintaining appropriate border security. Its objective is to maintain a safe, secure civil aviation environment in which services are delivered reliably and efficiently • the work of the NCTF, which oversees the implementation of Australia’s obligations under the World Trade Organization’s Trade Facilitation Agreement (TFA). Membership includes representatives from Australian government agencies, customs brokers, freight forwarders, importers, exporters and business councils. In November 2016, the NTCF advised industry of major changes to the Harmonized System of Tariff Classification; agreed a forward work programme to build on the entry into force of the TFA; and secured industry participation in a new Single Window Working Group. In March 2017 the meeting of the NCTF legislative working group sought industry input on forthcoming legislation, including proposed changes to the Customs Act 1901 and the Customs Tariff Act 1995. The Department also runs workshops and consultation sessions so that industry partners are afforded every opportunity to be involved in trade and customs policy development.

KPI 1.4.4 Effective industry engagement through Australian Trusted Trader Programme increases facilitation of legitimate goods across the border resulting in a stronger economy

Target: To be reported from 2017-18

Source: Corporate Plan 2016-17 p. 31.

Result: Engaging with businesses during and after the accreditation process, the ATT Programme works to secure the international supply chain while facilitating the movement of legitimate trade.

ANNUAL PERFORMANCE STATEMENT 55 54

56

SPM 1.4 Case study

WORLD-CLASS TRADE BENEFITS: THE AUSTRALIAN TRUSTED TRADER PROGRAMME

A ustralian businesses enjoy a range of world-class trade-facilitation benefits following the implementation of the Australian Trusted Trader (ATT) Programme on 1 July 2016.

ATT is open to eligible Australian businesses that are active in the international supply chain. It aims to strengthen companies’ international competitiveness by streamlining processes at the border, reducing red tape and making faster access to market possible.

ATT is a voluntary initiative that was co-designed with industry. It recognises businesses that have a secure supply chain and compliant trade practices.

Trusted Traders also have the opportunity to work in partnership with the Department to influence the programme’s policy direction and take part in trials of new initiatives.

A key benefit for industry is access to mutual recognition arrangements (MRAs)—formal arrangements between customs administrations internationally that recognise Authorized Economic Operator (AEO) programmes, and provide reciprocal benefits to another country’s trusted partners.

The Department signed its first MRA with the New Zealand Customs Service in July 2016. It will deliver a mutually beneficial outcome that increases both nations’ contributions to international supply chain security and trade facilitation. It is anticipated that by 2020 this MRA will facilitate up to 13 per cent of New Zealand’s import volume—totalling $3 billion— to Australia, as well as $7.5 billion of Australian exports to New Zealand.

In 2016−17 the Department actively worked to finalise MRAs with the Korea Customs Service, the Canada Border Services Agency and the Hong Kong Customs and Excise Department. The Department also reaffirmed AEO cooperation with China.

By improving Australia’s international trade competitiveness, the nation will benefit from greater job opportunities and investment, strengthening our economy and ultimately national security.

For more information, visit the Australian Trusted Trader website17.

17 www.border.gov.au/trustedtrader

ANNUAL PERFORMANCE STATEMENT 57

56 ANNUAL PERFORMANCE STATEMENT 57

58

PURPOSE 2: MANAGE THE MOVEMENT AND STA Y OF PEOPLE TO CONTRIBUTE TO A COHESIVE SOCIETY

Table 6: Purpose 2 performance criteria

This Purpose encompasses:

Corporate Plan Strategic Performance Measure 2.1: Australia’s visa programmes provide 2016-17 a strong foundation for social cohesion

Strategic Performance Measure 2.2: Australian citizenship is valued

Strategic Performance Measure 2.3: Australia contributes to the global management of refugees and displaced populations

Strategic Performance Measure 2.4: The integrity of visa programmes is strengthened by effective regulatory and enforcement activities

Portfolio Budget Outcome 1: Protect Australia’s sovereignty, Program 1.2: Border Management Statements 2016-17 security and safety by managing its border, including through managing the stay and Program 1.3: Onshore Compliance

and Detention

departure of all non-citizens.

Outcome 2: Support a prosperous and inclusive Program 2.1: Citizenship society, and advance Australia’s economic interests through the effective management of the visa and citizenship programs and provision of refugee and humanitarian assistance.

Program 2.2: Migration

Program 2.4: Refugee and Humanitarian Assistance

The Department had a key role in contributing to Australia’s social cohesion during 2016−17. This included the provision of family reunification and other non-skills-based migration pathways, fostering shared values and observance of Australia’s laws, and ensuring that Australian citizenship represented a valued step towards

becoming part of Australian society. The Department supported these activities with a robust compliance system, ensuring that risks were adequately managed. In addition, the Department contributed to social cohesion by maintaining a Refugee and Humanitarian Programme which responded effectively to global humanitarian situations

and met the specific needs of these entrants. The Department collaborated with other Australian Government agencies, including the Department of Human Services, the Department of Social Services, and the Attorney General’s Department to achieve this purpose.

ANNUAL PERFORMANCE STATEMENT 59 58

58

Figure 5: Purpose 2 Performance snapshot18

PEOPLE

Australian Citizenship

137,750 people conferred

19,454 who applied by descent, adoption and resumption

Places granted

Places delivered

13,760 2016−17 Humanitarian Programme

8,208 Syrian and Iraqi Humanitarian Crisis Measure

Migrant employment rate

75% 17% employed not in labour force

18 months after arrival

PERMANENT MIGRATION PROGRAMME

56,220 Family stream

123,567 Skill stream

421 Special Eligibility stream

3,400 Child (outside the managed Migration Programme)

COMPLIANCE

6,948 unlawful non-citizens removed from Australia

396 illegal Worker Warning Notices issued to employers and business sponsors

99% temporary visa entrants remain lawful while in Australia

18 Exact figures a vailable at Years at Glance table on page 254 and the Results Table on pages 33-111.

ANNUAL PERFORMANCE STATEMENT 59 58

SPM 2.1 AUSTRALIA’S VISA PROGRAMMES PROVIDE A STRONG FOUNDATION FOR SOCIAL COHESION

Analysis

During 2016−17, the Department continued to support Australian social cohesion and prosperity by managing migration and visa programmes, complementing the work of other Australian Government and state and territory agencies. The Department met its key performance indicators in delivering visa programmes that contribute to Australia’s social and cultural diversity. It delivered all streams of the Migration Programme within planning levels set by Government. In total, the Department granted 8,411,187 visas under a range of temporary visa programmes that contribute to Australia’s social and cultural diversity.

The size and composition of the 2016−17 Migration Programme was designed to meet Australia’s economic and social needs, including its immediate and forecast

long-term social, economic and labour market needs, as well as Australians’ family reunion needs, while taking account of the impact on infrastructure. Migration Programme planning levels were developed in consultation with key stakeholders, including state and territory governments, industry and business, community groups, academics, migration agent representative bodies and Australian Government agencies.

Evidence indicates that the public supports the Migration Programme and accepts that it meets society’s needs. The Productivity Commission Inquiry Report Migrant Intake into Australia19 found that the current immigration system has generally served the interests of the broader community well. The Committee for Economic

Development of Australia’s report Migration: the economic debate20 noted that the Migration Programme has enjoyed very strong community support and is perceived to have contributed to the nation’s economic development. Mapping Social Cohesion—The Scanlon Foundation Surveys 201621 found a ‘continuing low level of concern over issues of immigration’. Thirty-four per cent of the 1500 respondents to this survey thought that the immigration intake was too high, the lowest proportion recorded since 2007. This result is similar to the findings of other recent polls and surveys conducted by the Lowy Institute, the Australian National University and Roy Morgan Research22.

The Department’s temporary visa programmes also support social cohesion by

19 www.pc.gov.au/inquiries/completed/migrant-intake/report/migrant-intake-report.pdf 20 www.ceda.com.au/CEDA/media/ResearchCatalogueDocuments/Research%20and%20Policy/PDF/32509- CEDAMigrationReportNovember2016Final.pdf 21 www.scanlonfoundation.org.au/wp-content/uploads/2016/11/2016-Mappings-Social-Cohesion-Report-FINAL-with-covers.pdf 22 www.lowyinstitute.org/publications/lowy-institute-poll-2016, www.roymorgan.com/findings/6507-australian-immigration-

population-october-2015-201510200401 , www.rsss.anu.edu.au/sites/default/files/images/ANU_36078_APER_FA.PDF,

ANNUAL PERFORMANCE STATEMENT 61 60

enhancing the exchange of knowledge and innovation. The Department granted a record 343,035 visas to students, 5,345,684 visas to visitors, and 211,011 to working holiday makers. Australia’s social and cultural diversity provides a competitive advantage in attracting international students, visitors, and people on youth exchange, and encourages international connections. The Temporary Activity (subclass 408) visa, which was introduced on 19 November 2016, allows people to come to Australia on a temporary basis to participate in activities enhancing people-to-people connections. They include religious work, work in the entertainment industry, and activities that provide cultural enrichment and community benefit.

The Family stream of the Migration Programme contributed to social

cohesion by providing opportunities to strengthen family and community bonds within Australia. It did so by preserving family unity where possible, always protecting the best interests of children, and enabling people to receive care and support from family members in Australia so that they were not excluded from the community. The Department introduced new measures to better protect sponsored family visa applicants. On 18 November 2016 a new Regulation came into effect requiring sponsors of partner and prospective marriage visa applicants to provide a police clearance to the Department. Sponsors must also consent to share relevant information about any criminal history with the visa applicant. If this does not occur, an application may be refused. The initiative aims to prevent people with serious and violent criminal records

from sponsoring potentially vulnerable spouses.

Within Australia’s Humanitarian Programme, both the Special Humanitarian Programme (SHP) and the Community Proposal Pilot engaged families, community and business organisations to support the resettlement of humanitarian entrants, thus strengthening social cohesion. From 1 July 2017 the Community Support Programme (CSP) replaced the pilot, which had been operating since 2013. It will enable communities and businesses to sponsor applicants and support new arrivals, including through employment and settlement support. Greater community and business engagement in resettling refugees benefits refugees as well as the wider community by contributing to social cohesion and stimulating economic and community participation.

ANNUAL PERFORMANCE STATEMENT 61 60

The Department continues to promote the importance of positive labour market outcomes as an indicator of successful settlement and integration into Australian society. The Social Research Centre’s Continuous Survey of Australia’s Migrants (CSAM)23, conducted on behalf of the Department, measures the labour-market integration of recently arrived migrants in the Skill

and Family streams at the six and 18 month points following arrival. The survey provides information on the effectiveness of these programmes and aspects of economic integration and social cohesion. In 2016−17 the Department met all its key performance indicators relating to the labour-market outcomes of migrants in Australia, as reported by the CSAM.

23 www.border.gov.au/about/reports-publications/research-statistics/research/live-in-australia/ continuous-survey-of-australias-migrants-csam

ANNUAL PERFORMANCE STATEMENT 63 62

Results

Table 7: SPM 2.1 - Australia’s visa programmes provide a strong foundation for social cohesion

KPI 2.1.1 The non-skilled component of the managed migration programme is delivered within planning levels set by the Government for each category

Target: Delivery within Government targets Source: Corporate Plan 2016−17 p. 32. Program 2.2 PBS p. 44.

Result: The Department granted over 183,600 permanent places to new migrants in 2016-17 to meet Australia’s skill and family needs. Of the permanent places granted, Family and Special Eligibility stream visas totalled more than 56,600.

KPI 2.1.2 Migration planning levels consider the needs of society

Target: No target Source: Corporate Plan 2016−17 p. 32.

Result: Planning levels for the 2016−17 Migration Programme considered the needs of society and evidence indicated that the majority of Australians considered the immigration intake to be acceptable. Mapping Social Cohesion - The Scanlon Foundation Surveys 2016 found ‘continuing low level of concern over issues of immigration’.  Only 34 per cent of the 1500 respondents to this survey thought that the immigration intake was too high, the lowest proportion recorded since 2007. This result is similar to the findings of other recent polls and surveys conducted by the Lowy Institute, the Australian National University and Roy Morgan Research.

KPI 2.1.3 Deliver a range of temporary visa programmes that appropriately contribute to Australia’s social and cultural diversity: 2.1.3.1 number of visa decisions 2.1.3.2 percentage that were decided within service standards

Target: No target Source: Corporate Plan 2016−17 p. 32.

Result: 2.1.3.1 number of visa decisions - 252,561 2.1.3.2 percentage that were decided within service standards - 69.4%

KPI 2.1.4 Labour market outcomes of surveyed migrants 18 months after arrival/visa grant as reported in the Continuous Survey of Australia’s Migrants: 2.1.4.1 percentage employed 2.1.4.2 percentage unemployed 2.1.4.3 percentage not in labour force

Target: Source: Corporate Plan 2016−17 p. 32.

2.1.4.1 percentage employed - ≥70% 2.1.4.2 percentage unemployed - <10% 2.1.4.3 percentage not in labour force - <20%

Result: 2.1.4.1 percentage employed - 75.0% 2.1.4.2 percentage unemployed - 8.1% 2.1.4.3 percentage not in labour force - 16.9%

ANNUAL PERFORMANCE STATEMENT 63 62

64

SPM 2.1 Case study

AN ADDITIONAL PERMANENT RESIDENCE PATHWAY FOR NEW ZEALAND CITIZENS

T he strong economic and cultural ties between Australia and New Zealand has meant a free flow of people between the countries under various arrangements since the 1920s.

The current arrangement is the 1973 Trans-Tasman Travel Arrangement (TTTA), which allows Australian and New Zealand citizens to enter each other’s country without needing to apply for authority to do so. In 1994 the Special Category (subclass 444) visa (SCV) was introduced to meet Australia’s universal visa requirement while respecting the Trans-Tasman agreement. Although the SCV allows New Zealand citizens to remain in Australia indefinitely, it has always been a temporary visa.

All non-citizens, regardless of nationality, must hold a permanent residence visa to be eligible to apply for Australian citizenship. New Zealand citizens seeking to apply for a permanent visa have always been encouraged to explore the range of options available under the Family and Skill streams of the Migration Programme.

On 19 February 2016 the Australian Government announced an additional pathway to permanent residence acknowledging the two countries’ special bilateral relationship. The intent of this measure is to recognise the ongoing commitment and contribution made to Australia by New Zealand citizens living in and contributing to the Australian community.

From 1 July 2017, many New Zealand citizens who have been living in Australia for at least five years and who show a commitment and continuous contribution to Australia will be able to apply for the new stream within the Skilled Independent (subclass 189) visa.

The Skilled Independent (subclass 189) (New Zealand) stream is an additional visa option for SCV holders who were usually resident in Australia on or before 19 February 2016 and who, at the time of lodging an application, have lived in Australia for at least five years. These arrangements will give many New Zealand citizens permanent residence status if they meet certain criteria, including: • contributing to Australia,

demonstrated through income tax returns which show assessable income at least equivalent to the Temporary Skilled Migration Income Threshold (TSMIT) for the qualifying period • meeting mandatory health,

character and security checks.

New Zealand citizens who are granted this visa will be eligible to apply for Australian citizenship after a period of 12 months, in addition to the five years’ residence as an eligible New Zealand SCV holder.

ANNUAL PERFORMANCE STATEMENT 65

64 ANNUAL PERFORMANCE STATEMENT 65

SPM 2.2 AUSTRALIAN CITIZENSHIP IS VALUED

Analysis

Citizenship unifies our multicultural nation and helps to build a cohesive society by providing individuals with the opportunity to demonstrate a commitment to the Australian people, Australian values and a common future. Citizenship is a privilege to be valued.

The Department delivered the Citizenship Programme during 2016-17 when 157,204 people acquired citizenship by conferral, descent, adoption (under full and permanent Hague Convention or bilateral arrangement) or resumption. The Citizenship Programme also delivered 42,450 approved applications for evidence of Australian citizenship, up 63.1 per cent from 2015−16, and 166 renunciations of citizenship, up 25.8 per cent from 2015−16.

On 20 April 2017 the A

ustralian Government announced a package of reforms to strengthen requirements for Australian citizenship. The changes include: • increasing the general

residence requirement • introducing an English-language test • strengthening the

Australian values statement • strengthening the test for Australian citizenship • introducing a requirement

for applicants to demonstrate their integration into the Australian community • strengthening the Pledge

of Commitment.

These reforms are subject to the passage of the Australian Citizenship Legislation Amendment (Strengthening the Requirements for Australian Citizenship and

Other Measur

es) Bill 2017,

which was introduced to Parliament on 15 June 2017.

The Department continued to promote the value of Australian citizenship in 2016−17 through stakeholder and community engagement activities, including: • working with local

government councils around Australia that host most of the citizenship ceremonies on behalf of the Department • working with the

National Australia Day Council to encourage the use of the Australian citizenship affirmation • sponsoring Australia’s

Local Hero Award (one of four categories in the Australian of the Year Awards) for the 14th consecutive year to promote Australian values • organising major

citizenship ceremonies

ANNUAL PERFORMANCE STATEMENT 67 66

for Australian Citizenship Day (17 September 2016) and Australia Day (26 January 2017).

The Department used its communications and media resources effectively to promote these events and activities and to reinforce the value of Australian citizenship. Analysis of media coverage of Australia Day in January 2017 found that 858 items on TV, radio, newspapers, online news and social media reached more than 23 million people.

The Department also enhanced community protection, identity management and quality assurance in managing the Citizenship Programme, introducing a range of caseload assurance measures to improve identity verification, quality assurance and risk management.

The largest component of the Citizenship Programme is citizenship by conferral. The number of people acquiring citizenship by conferral has risen by 63.6 per cent over the past five years, from 84,183 in 2011−12 to 137,750 in 2016−17. This increase, coupled with enhanced integrity processes and increasing case complexity, has led to changes to processing times.

The Department has changed the way it provides information to clients and average citizenship application processing times on its website with a view to increasing transparency for clients. Ninety per cent of people who acquired citizenship by conferral in 2016-17 did so within 11 months of lodging their applications.

Those who chose to become Australian citizens in 2016−17 made a commitment to Australia’s democracy and way of life. That commitment, made by five million individuals since 1949, has helped to secure and enrich our nation. The Citizenship Programme continues to provide new migrants with the opportunity to be full and active participants in Australian society, thereby contributing to unifying Australia’s multicultural society and building social cohesion.

ANNUAL PERFORMANCE STATEMENT 67 66

Results

Table 8: SPM 2.2 - Australian citizenship is valued

KPI 2.2.1 Number of visits to the Citizenship Wizard on DIBP’s website

Target: Source:

>300,000 Corporate Plan 2016−17 p. 33.

Program 2.1 PBS p. 42.

Result: 1,446 In 2016−17 the Citizenship Wizard was moved to a less visible location on the Department’s website, resulting in a significant reduction in visits.

KPI 2.2.2 Number of applications for citizenship lodged

Target: Source:

No target Corporate Plan 2016−17 p. 33.

Program 2.1 PBS p. 42.

Result: 222,90724 The Australian Citizenship Programme is demand-driven and the Department experienced a sustained high level of demand from people wanting to become Australian citizens. The number of applications lodged by primary and dependent applicants increased by 2 per cent from 2015−16 to 2016−17.

KPI 2.2.3 Percentage of citizenship conferral decisions made within service standards

Target: Source:

80% Corporate Plan 2016−17 p. 33.

Program 2.1 PBS p. 42.

Result: 45% The Department is working through an unprecedented number of citizenship applications, and some may take longer to be decided if they are particularly complex: if, for example, more information is required or additional checks outside the Department are needed. The Department has moved to publishing average citizenship processing times on its website to increase transparency for clients.

KPI 2.2.4 Percentage of refusal decisions for Australian citizenship overturned through an appeal process

Target: Source:

<1% Corporate Plan 2016−17 p. 33.

Program 2.1 PBS p. 42.

Result: <1% At 30 June 2017 less than 1 per cent of refusal applications were overturned after Administrative Appeals Tribunal review.

24 Number of applications for citizenship lodged in the financial year, including the conferr al, descent, adoption and resumption caseloads.

ANNUAL PERFORMANCE STATEMENT 69 68

Table 8: SPM 2.2 - Australian citizenship is valued

Other performance evidence

Number of individuals who acquired citizenship by conferral 137,750

Number of individuals who applied for citizenship by descent 19,236

Number of individuals who applied for citizenship through adoption (under full and permanent Hague Convention or bilateral arrangement)

52

Number of primary applicants who applied for citizenship through resumption 166

Number of individuals who received evidence of citizenship 42,450

Number of individuals who renounced citizenship 166

Number of individuals who had their citizenship revoked <5

Number of conferral applications for primary and dependent applicants refused 4,151

Number of people who acquired citizenship on Australia Day 2017 15,655

Number of people who acquired citizenship on Citizenship Day (17 September 2016)

1,734

Number of citizenship ceremonies (noting that most are hosted by local government councils)

3,130

ANNUAL PERFORMANCE STATEMENT 69 68

70

SPM 2.2 Case study

STRENGTHENING FAMILY PROTECTION

T he Family stream facilitates the reunion of family members. It strengthens the stability of families in Australia, particularly for permanent skilled migrants, and supports the growth of the Australian economy. Partners, children (including adopted children), parents and other family members are included in the programme, which is designed to complement skilled migration as well as reuniting Australian citizens with their families. 

In November 2016 the Government These disclosure provisions introduced new measures to allow an applicant to make a strengthen protection against more informed decision about family violence within the continuing with their application. migrant community. New powers were inserted into the Since these new powers Migration Regulations to allow the were introduced, at least five Department to compel sponsors of sponsorships have been refused partner and prospective marriage because convictions for relevant visa applicants to provide police offences indicated a high likelihood checks; and gave the Department that the sponsor would commit acts the power to refuse to approve of violence against their partner. sponsorship if the sponsor does not provide the requested police checks or if they have convictions for certain serious offences.

The new provisions also allow the Department to approve a sponsorship if it is considered reasonable to do so, as well as to disclose the sponsoring partner’s convictions for relevant offences to the visa applicant.

ANNUAL PERFORMANCE STATEMENT 71

70 ANNUAL PERFORMANCE STATEMENT 71

SPM 2.3 AUSTRALIA CONTRIBUTES TO THE GLOBAL MANAGEMENT OF REFUGEES AND DISPLACED POPULATIONS

Analysis

Australia continues to play an active role in the international protection of refugees, reflected in the 2016−17 Humanitarian Programme and humanitarian assistance. Resettlement and assistance programmes are targeted to help those most affected by global humanitarian crises and to provide ongoing support to displaced populations overseas, helping to stabilise them and prevent the onward movement of people from countries of first asylum. These programmes are carried out in line with Government priorities, and with the safety and security of the Australian people as the foremost consideration.

The Department delivered the Government’s commitment to resettle 12,000 Syrians and Iraqis displaced by the crisis in the Middle East. The last 8208 places were granted in March 2017. It brought to 22,398

the total number of places granted to Syrian and Iraqi nationals since 1 July 2015, encompassing both the Humanitarian Programme and the additional 12,000 places allocated under the Syrian and Iraqi Humanitarian Crisis Measure.

Places were granted to persecuted minorities, in particular women, children and families displaced by the conflicts in Syria and Iraq who have the least prospect of safe return to their home country. In total 4010 places were granted to women, 4358 to children and 11,863 to families. Local communities have welcomed the new arrivals, who are receiving settlement services. These include English classes and employment assistance to ensure that they have the support needed to participate actively in Australian society, including through employment.

All potential Syrian and Iraqi entrants were assessed in line with strict security procedures.

The Humanitarian Programme was fully delivered in 2016−17, with 13,760 visas granted. This means that Australia remained in the top three countries for resettlement of UNHCR-referred refugees. During 2016−17, 12,049 visas were granted in the offshore component and 1711 visas in the onshore component of the programme. Within the offshore component, 6642 were granted under the Refugee category and 5407 were delivered under the Special Humanitarian Programme. A total of 1607 visas were also granted to vulnerable women, children and dependents. This programme year was the third and last year of the Community Proposal Pilot, which allowed people and organisations

ANNUAL PERFORMANCE STATEMENT 73 72

to directly sponsor those in humanitarian need to come to Australia. In all, 608 people were granted visas to Australia under this pilot. The initiative has transitioned to the permanent Community Support Programme for future years. The Department also acted to rapidly resolve manifestly unfounded claims made by non-citizens onshore who were seeking to prolong their stay in Australia. This resulted in the refusal of more than 6253 permanent protection visa applications during 2016−17.

The Department also provided humanitarian care and management services to displaced populations through its International Capacity Building Programme. Activities delivered through funding arrangements with non-government organisations provided emergency assistance to over 230,000

people displaced by conflicts in Syria and Iraq, as well as return and reintegration assistance to more than 49,000 refugees across Tamil Nadu, India, and Sri Lanka. In total, over 386,000 people received assistance from our cooperation and capacity-building activities. 

Over the programme year, the Department accelerated the resolution of protection claims made by illegal maritime arrivals (IMAs) within the legacy caseload, with approximately 41 per cent of the caseload now decided. In 2016−17, 7866 primary decisions and 8000 final decisions were made. The Department also completed all eligibility assessments for the legacy caseload, with 1855 vulnerable IMAs referred for funded application assistance under the Primary Application and Information Service.

Reminder letters issued from December 2016 to IMAs who were yet to lodge an application prompted increased applications for Temporary Protection (subclass 785) visas and Safe Haven Enterprise (subclass 790) visas. Altogether, 2432 reminder letters were sent to IMAs who had been invited to apply for a Temporary Protection or Safe Haven Enterprise visa before 30 June 2016. Of those IMAs who were sent a reminder letter, 1909 lodged applications. During 2016−17 IMAs lodged a total of 15,181 applications. The Department will continue its strong focus on resolving the IMA legacy caseload in 2017−18, consistent with the announcement of a 1 October 2017 deadline for IMAs to apply for temporary protection.

The Department has implemented new processes and procedures to increase

ANNUAL PERFORMANCE STATEMENT 73 72

the rate of temporary protection decisions without compromising national security or programme integrity. A rigorous programme assurance framework was implemented in 2016−17, together with more targeted country information to ensure a high level of confidence and consistency in decision-making.

The Department continued to make a strong contribution to assisting refugees and displaced populations while maintaining Australia’s national security. Throughout 2016−17 work focused on ensuring that those most in need were offered Australia’s protection and assistance, and that entry and stay by non-citizens who would seek to do harm,

disguise their identity or make manifestly unfounded protection claims was prevented. The Department ensured that its capability, systems and processes were calibrated to support delivery of the Humanitarian Programme as it increases to 16,250 places in 2017−18 and 18,750 places in 2018−19.

ANNUAL PERFORMANCE STATEMENT 75 74

Results

Table 9: SPM 2.3 - Australia contributes to the global management of refugees and displaced populations

KPI 2.3.1 Number of places delivered in the 2016−17 Humanitarian Programme (excluding Syrian and Iraqi Humanitarian Crisis Measure)

Target: Source: Corporate Plan 2016−17 p. 34.

13,750 Program 2.4 PBS p. 27.

Result: 13,760

KPI 2.3.2 12,000 places delivered to Syrian and Iraqi refugees as part of the Syrian and Iraqi Humanitarian Crisis Measure by 2018−19

Target: Source: Corporate Plan 2016−17 p. 34.

7,000 Program 2.4 PBS p. 27.

Result: 8,208

KPI 2.3.3 IMA legacy caseload: 2.3.3.1 the number of indicative primary decisions25 made 2.3.3.2 the number of finalised cases 26

Target: Source:

2.3.3.1 the number of indicative primary decisions made - 9,100 Corporate Plan 2016−17 p. 34. 2.3.3.2 the number of finalised cases - no target

Result: 2.3.3.1 the number of indicative primary decisions made - 7,656 2.3.3.2 the number of finalised cases — 8,000

KPI 2.3.4 Number of people receiving humanitarian assistance through capacity-building projects in other countries

Target: Source:

No target Corporate Plan 2016−17 p. 34.

Result: 386,150

KPI 2.3.5 Australia’s ranking relative to other countries for resettlement of UNHCR-referred refugees, as reported by the United Nations High Commissioner for Refugees27

Target: Source:

Ranked 3rd Corporate Plan 2016−17 p. 34.

Result: Ranked 3rd

25 Pending health, character and security checks. Note that these decisions are indicative only. 26 Includes cas es which are finalised following merits and judicial review. 27 Ranking based on most r ecent edition of the UNHCR Statistical Yearbook at the time of reporting.

ANNUAL PERFORMANCE STATEMENT 75 74

76

SPM 2.3 Case study

AUSTRALIA ASSISTS PEOPLE DISPLACED BY CONFLICTS IN SYRIA AND IRAQ

K haled Naanaa worked as a surgical nurse at Syrian Government hospitals in Damascus. In 2011 he became part of an underground medical network treating wounded opposition supporters. In 2012 he moved to the opposition-held town of Madaya, near Damascus, where he helped set up a medical clinic and continued to work with people in need. By July 2015 Madaya was under siege. With access to food and medical supplies blocked and 30,000 to 40,000 people starving, Khaled went to the media to seek help. Extensive media coverage caused mounting international pressure, and the Syrian Government granted permission for the UN and the Red Cross to deliver food to the people of Madaya. Shortly after this, Khaled received death threats and was forced into hiding. He fled with his family to Lebanon, where they were granted visas as part of the Australian Government’s additional 12,000 places for people displaced by conflicts in Syria and Iraq.

Khaled Naanaa’s story shows the realities many refugees face, and the important role countries like Australia play in contributing to the global management of refugees and displaced people. From 2015 to 30 June 2017, under both the annual Humanitarian Programme and the fully-delivered additional 12,000 places, Australia granted a total of almost 22,400 visas to people displaced by conflicts in Syria and

Iraq. New arrivals are receiving a warm welcome from their local communities and excellent support from settlement services that is helping them to learn English, gain employment and play an active part in Australian life. Australia continues to provide high levels of humanitarian resettlement, with an increased 16,250 places in 2017−18, rising to 18,750 places in 2018−19.

ANNUAL PERFORMANCE STATEMENT 77

76 ANNUAL PERFORMANCE STATEMENT 77

SPM 2.4 THE INTEGRITY OF VISA PROGRAMMES IS STRENGTHENED BY EFFECTIVE REGULATORY AND ENFORCEMENT ACTIVITIES

Analysis

During 2016−17 the Department’s regulatory and enforcement activities contributed to the protection and good order of the Australian community. These activities, which are risk-based, support and strengthen the integrity of visa programmes and are integral to managing the movement and stay of people in Australia.

Overall, compliance with Australia’s visa programmes remained high in 2016−17, with more than 99 per cent of more than 7.1 million temporary arrivals remaining lawful while in Australia. The Department managed the removal of 6948 non-citizens from onshore immigration detention, compared with 4754 in 2015−16. These increased outcomes reflect the ongoing operational activity in removals as part of the broader status resolution framework.

Voluntary compliance is the primary approach for resolving the immigration status of people who have overstayed their visa, had their visa cancelled, or have entered Australia without authority. The Department uses a number of communication and awareness activities, as well as providing support services, to resolve people’s status. In all, 75 per cent of people voluntarily engaged with the Status Resolution Programme, an increase on the 74 per cent achieved in the 2015−16 reporting period.

The ratio of people the Department managed in the community on Bridging E visas (BVEs) in 2016−17, compared with those in held detention, was 25 to 1. This was above the ratio for the previous financial year, when only 17 people were managed on BVEs for every 1 in immigration

detention. The Department sought to resolve the status of 33,322 non-citizens, with 31,507 being managed in the community on BVEs. Unlawful non-citizens are placed in immigration detention or managed in the community based on risk. At 30 June 2017, with the use of a decision support tool, 98.5 per cent of detainees had their placement assessed within 14 days of entry into immigration detention.

The Department has statutory powers that can be used to cancel visas held by non-citizens who pose a risk to the Australian community, including those who pose a security threat or have engaged in criminal activity. In addition, general cancellation powers are used in support of visa caseload assurance priorities by addressing issues such as visa fraud, breach of visa conditions and identity

ANNUAL PERFORMANCE STATEMENT 79 78

concerns. In 2016−17 the issued 396 Illegal Worker delivered on 17 December Department cancelled 1837 Warning Notices to educate 2015. The framework is visas and refused 637 visa businesses about their designed to formalise a applications on security responsibilities when hiring strong, transparent and or character grounds. A non-citizens and to warn active departmental culture further 55,324 visas were them of the consequences that makes the safeguarding cancelled using general of continued breaches. A and wellbeing of children cancellation powers. total of 12 infringement a priority and does not

notices were issued to tolerate child abuse.

During the reporting period non-compliant employers. the Department undertook Since the framework was

979 employer awareness The ABF undertook 287 released, the Department has activities with business, sponsor site visits to monitor developed three safeguarding industry and stakeholder compliance with sponsorship policies, 16 supporting groups to encourage obligations, compared materials and two standard

voluntary compliance with with 541 in 2015-16. As a operation procedures. employer obligations. A key result of non-compliance Two tranches of the Child strategy is the promotion with their obligations, 447 Safeguarding eLearning of visa entitlement business sponsors were package are available for

verification online (VEVO) sanctioned (had their staff and service providers. checks as a reasonable sponsorships cancelled and/ step to assess whether a or barred), 158 were warned The framework non-citizen is allowed to and 16 were issued with acknowledges the statutory work. In 2016−17, 10,627 an infringement notice. rights of state and territory new businesses registered government child welfare

to use VEVO. Overall, The Department released authorities in protecting and 8,056,43828 VEVO checks the Child Safeguarding promoting the safety and were conducted in 2016−17 Framework29 on 17 October wellbeing of children. As compared with 6,150,844 in 2016, in response to the Child such, the Department began 2015−16, an increase of 31 Protection Panel’s Initial establishing memoranda of per cent. The Department Priorities for Reform paper understanding (MoUs) with

28 Combination of VEVO organisational checks (3,498,368) and VEVO self-checks (4,558,070). 29 www.border.gov.au/ReportsandPublications/Documents/child-safeguarding-framework.pdf

ANNUAL PERFORMANCE STATEMENT 79 78

these authorities to provide child protection services in immigration detention environments and, more broadly, to support children in the Unaccompanied Humanitarian Minors (UHM) Programme. At 30 June 2017 MoUs had been signed with New South Wales, Victoria, the Australian Capital Territory and Tasmania, and significant progress had been made towards establishing MoUs with the other states and territories.

The Department faces challenges in making sure that enforcement and regulatory activities keep pace with developments in technology and evolving integrity, security and character threats. Additionally, the Department

foresees an increase in status-resolution cases due to changes in visa policies and the processing of cohorts such as the IMA legacy caseload.

These challenges mean that the Department needs to remain innovative and responsive. It is committed to remaining engaged with stakeholders and to continuously evaluating internal processes and activities to develop enforcement and regulatory activities that support and strengthen the integrity of visa programmes and contribute to the protection and good order of Australian society.

Overall, the Department’s enforcement and regulatory activities have strengthened

the integrity of visa programmes and have contributed to the protection and good order of the community. The Department actively pursued status resolution, and those with no right to remain in Australia departed voluntarily or were removed. The Department continues to promote voluntary compliance with visa conditions and obligations as the primary approach, applying enforcement activities such as cancellation powers, the location, detention and removal of unlawful non-citizens, and sanctions to address non-compliance. It achieved strong results through a number of initiatives in 2016−17.

ANNUAL PERFORMANCE STATEMENT 81 80

Results

Table 10: SPM 2.4 - The integrity of visa programmes is strengthened by effective regulatory and enforcement activities

KPI 2.4.1 Employers are encouraged to voluntarily comply through the delivery of employer awareness activities

Target: Source: Corporate Plan 2016-17 p. 35.

No target Program 1.3 PBS p. 34.

Result: 97930

KPI 2.4.2 Voluntary compliance is the primary approach to avoiding breaches of visa conditions, evidenced by: 2.4.2.1 number of VEVO organisation checks 2.4.2.2 number of VEVO self-checks 2.4.2.3 new VEVO registrations

Target: Source: Corporate Plan 2016-17 p. 35.

No target Program 1.3 PBS p. 34.

Result: 2.4.2.1 number of VEVO organisation checks - 3,498,368 2.4.2.2 number of VEVO self-checks - 4,558,070 2.4.2.3 new VEVO registrations - 10,627

KPI 2.4.3 Number of Illegal Warning Notices and/or Infringements issued under Employer Sanctions, Payment for Visa and Business Sponsor Obligations legislation frameworks

Target: Source: Corporate Plan 2016-17 p. 35.

No target Program 1.2 PBS p. 32.

Result: 396 Illegal Worker Warning Notices and 12 Infringement Notices

KPI 2.4.4 Percentage of prosecution briefs completed as the result of a formal investigation under Employer Sanctions, Payment for Visa and Business Sponsor Obligations legislation frameworks

Target: Source: Corporate Plan 2016-17 p. 35.

No target Program 1.2 PBS p. 32.

Result: 0 There have not been any formal investigations that warranted the Department to undertake a formal prosecution brief. Formal investigations usually do not end in the completion of a prosecution brief because the Department’s preferred approach is to apply sanctions.

30 The result reflects the number of employer awareness activities conducted during 2016-17 and shows the extent of the Departmen t’s work in this area. Figures were extracted from Departmental systems as at 7 July 2017.

As data has been drawn from a live-systems environment, the figures provided may differ from previous or future reporting.

ANNUAL PERFORMANCE STATEMENT 81 80

Table 10: SPM 2.4 - The integrity of visa programmes is strengthened by effective regulatory and enforcement activities

KPI 2.4.5 Unlawful non-citizens seeking status resolution are appropriately accommodated based on risk

Target:31 Source:

100% Corporate Plan 2016-17 p.35.

Program 1.3 PBS p. 34.

Result: 98.5%

KPI 2.4.6 Implement the Detention Estate Management Plan in accordance with agreed budgets

Target: Source:

100% Corporate Plan 2016-17 p.35.

Result: 100%

KPI 2.4.7 Voluntary compliance is maintained as the primary approach to resolving the immigration status of people who have overstayed, had their visa cancelled, or who entered without authority: 2.4.7.1 percentage of people actively engaged with the status resolution programme who voluntarily approached the Department 2.4.7.2 ratio of people in the community lawfully on a Bridging E visa against those managed in immigration detention at 30 June

Target: Source:

2.4.7.1 percentage of people actively engaged with the status Corporate Plan 2016-17 p. 36. resolution programme who voluntarily approached the Department - 75% 2.4.7.2 ratio of people in the community lawfully on a Bridging E visa against those managed in immigration detention at 30 June — at least 25:1

Result: 2.4.7.1 percentage of people actively engaged with the status resolution programme who voluntarily approached the Department - 75% 2.4.7.2 ratio of people in the community lawfully on a Bridging E visa against those managed in immigration detention at 30 June — 25:1

31 The Department in troduced the Community Protection Assessment Tool (CPAT) during 2016-17. CPAT is a decision support tool Status Resolution Officers use in making risk-based placement decisions. The Department requires officers to complete a CPAT assessment for all relevant persons within 14 days of being referred for status resolution consideration.

ANNUAL PERFORMANCE STATEMENT 83 82

Table 10: SPM 2.4 - The integrity of visa programmes is strengthened by effective regulatory and enforcement activities

KPI 2.4.8 Number of unlawful non-citizens removed from Australia

Target: Source:

No target Corporate Plan 2016-17 p. 36.

Result: 6,948 removals from immigration detention in Australia

KPI 2.4.9 Percentage of temporary visa entrants that remain lawful while in Australia

Target: Source:

>99% Corporate Plan 2016-17 p. 36.

Program 1.2 PBS p. 32.

Result32: >99%

32 This measure s eeks to evaluate the effectiveness of the Department’s regulatory enforcement activities. The reported result of ‘>99 per cent’ indicates that the majority of temporary visa holders remain lawful relative to the overall number of visa grants, and has been consistently reported in this manner for a number of years.

ANNUAL PERFORMANCE STATEMENT 83 82

84

SPM 2.4 Case study

GENERAL CANCELLATIONS NETWORK RESPONDS SWIFTLY, FACILITATES VOLUNTARY REMOVAL

A non-citizen had spent considerable time in Australia on a working holiday visa and had developed a long-term relationship with an Australian citizen. Through its close working relationship with New South Wales Police, the Department was notified that the non-citizen was on bail awaiting a court outcome relating to charges of domestic violence.

The case was referred to the The General Cancellations General Cancellations Network Network was able to respond to consider cancellation of the quickly to cancel the visa, non-citizen’s visa. Due to the ensuring the non-citizen was not seriousness of the charges including able to commit further violent assault occasioning bodily harm crimes and ceasing his right to and wounding, and the risk the work in Australia. Through the non-citizen’s behaviour presented cancellation and status resolution to a member of the Australian processes, the Department community - his partner - his removed the threat he posed to working holiday visa was cancelled his Australian citizen partner under section 116 of the Migration and maintained the integrity of Act 1958. The man was detained Australia’s visa programmes. and removed from Australia.

People in this photograph have posed for illustrative purposes only.

ANNUAL PERFORMANCE STATEMENT 85

84 ANNUAL PERFORMANCE STATEMENT 85

86

PURPOSE 3: MANAGE THE BORDER TO CONTRIBUTE TO A SAFER, SECURE AUSTRALIA

Table 11: Purpose 3 performance criteria

This Purpose encompasses:

Corporate Plan Strategic Performance Measure 3.1: Threats are detected before, at and after the border 2016-17 Strategic Performance Measure 3.2: The border is strengthened through the control and surveillance of the maritime domain

Strategic Performance Measure 3.3: Collaboration with partners within and outside Australia improves border security

Portfolio Budget Outcome 1: Protect Australia’s sovereignty, Program 1.1: Border Enforcement Statements 2016-17 security and safety by managing its border, including through managing the stay and departure of all non-citizens.

Program 1.2: Border Management

Program 1.4: IMA Offshore Management

Program 1.5: Regional Cooperation

During 2016−17, the Department successfully fulfilled this purpose by treating the Australian border as a continuum and using an intelligence-informed, risk-based approach to ensure that threats were detected and disrupted by working before, at and after the border. As

part of these efforts, the Department conducted regular surveillance and patrols of the Australian maritime domain as well as risk-assessing all goods and travellers entering and leaving Australia. Disrupting border threats involved many Australian agencies. The Department

collaborated with key Australian Government agencies, including the Department of Defence and the Australian Federal Police, as well as intelligence and international partners. This ensured that the border was strengthened and that the safety and security of all Australians was protected.

ANNUAL PERFORMANCE STATEMENT 87 86

86

Figure 6: Purpose 3 Performance snapshot33

BORDER PROTECTION

119m square nautical miles aircraft coverage

15 foreign fishing vessels apprehended while in Australian waters

1,000+ days since a people smuggling venture reached Australia

3yrs+ since a people smuggling death at sea

PEOPLE

57,161 visa cancellations

ILLEGAL DETECTIONS

1,709

undeclared firearms, parts and accessories at the border

1,974 illicit substance detections supported by detector dogs

216m

undeclared cigarettes detected through the sea and international mail streams

139t 7t

undeclared tobacco detected major illicit drugs

through the sea and detected at the border

international mail streams

33 Exact figures av ailable at Years at Glance table on page 254 and the Results Table on pages 33-111.

ANNUAL PERFORMANCE STATEMENT 87 86

SPM 3.1 THREATS ARE DETECTED BEFORE, AT AND AFTER THE BORDER

Analysis

The Department protects visas to enter Australia. higher-risk traveller cohorts, Australia by using an The Department works leading to 3966 international intelligence-informed, risk- closely with its international travellers being refused based approach to secure the partners, sharing intelligence entry to Australia. These border continuum, ensuring and in combined operations, compliance operations had that threats are detected and to detect and resolve threats an impact on increasing disrupted. By maintaining a before the physical border. the refused immigration physical presence at airports, Our focus on intelligence- clearance (RIC) rate for seaports, in remote regions, informed activities has the reporting period. In at international locations paid dividends. During the 2016-17, the proportion of and in the maritime domain, reporting period, intelligence passengers and crew refused the Department provides a information caused 637 immigration clearance safe and secure border for the persons to have applications was 0.018 per cent, against Australian public through for visas cancelled, based the nominal benchmark prevention, deterrence and on character or security of less than 0.015 per cent. enforcement activities. grounds. A further 1837 This result demonstrates These include but are not had their visas cancelled the validity and efficacy of limited to: facilitating the at various points across compliance activities to lawful passage of people and the border continuum strengthen border security. goods; investigations; visa on the same grounds. compliance and enforcement; The trend of increasing

and inspections and The Department was vigilant traveller volumes continued examination of sea cargo, in ensuring that only properly in 2016-17. During the air cargo and international documented travellers reporting period, the mail across all points of entered Australia. During the Department processed entry to detect and goods. reporting period, in support 21.99 million international

of the Department’s visa traveller arrivals (including

International travellers regime, 0.63 per cent of all passengers and crew) The Department’s visa passengers and crew arriving compared with 20.42 million and intelligence regime by air and sea were referred arrivals in 2015-16. contributes to the strength for further scrutiny ahead Departures of international of the border continuum by of immigration clearance. passengers and crew also ensuring that people who The Department undertook a increased, with 21.74 million pose a risk to the Australian number of targeted activities international travellers community are not given and operations focused on processed on departure

ANNUAL PERFORMANCE STATEMENT 89 88

compared with 20.25 million departures in 2015-16—a 10.6 per cent increase over the Department’s forecast. These figures, considered together, show that the ABF is processing many more passengers than in the previous year and doing so more quickly, while identifying more passengers who pose a threat.

The ABF Counter Terrorism Units (CTU) strengthened the Department’s ability to respond to the threats in the broader global environment. More than 100 CTU-trained officers monitor outgoing and inbound travellers at 11 of Australia’s airports operating international sectors. In 2016-17, CTU teams conducted more than 235,000 real-time assessments, assisted with 118 passenger offloads and undertook intervention activities that led to the detection of more than $9 million in excess undeclared currency. In comparison, from 1 July 2015 to 30 June 2016, CTU teams conducted 199,009

real-time assessments, assisted with 408 passenger offloads and undertook intervention activities that led to the detection of more than $3 million in excess undeclared currency. Outcomes of CTU intervention activity include suspension or cancellation of passports, the imposition of infringement notices, or ongoing investigations. The CTU prevented minors from travelling to conflict areas, found evidence of movements of large sums of cash and detected images and material of an extremist nature.

Despite the Department’s work to mitigate risk ahead of the border, some travellers sought to enter Australia and circumvent Australian law by bringing illicit goods across the physical border and into the country. The Department used a range of enforcement and intervention activities to counter these threats. Based upon intelligence information and real-time assessment by skilled officers, the Department

examined on arrival 118,969 passengers suspected of carrying contraband. This led to 11,590 detections resulting in confiscation of goods, fines and /or convictions.

The overall efficiency of the Department’s efforts is illustrated by the fact that the vast majority of people coming to Australia comply with our migration laws. Overall compliance with the Migration Programme is high. From 1 July 2016 to 30 June 2017, more than 99 per cent of the over 7.1 million temporary entrants complied with the requirement to maintain their lawful immigration status or to depart Australian before their visa expired.

The Department’s work in monitoring the flow of travellers across the border has been largely successful during the reporting period. The Department enables and fosters a high level of voluntary compliance while dealing with those who do not comply, thus

ANNUAL PERFORMANCE STATEMENT 89 88

ensuring the integrity of the Migration Programme and the community’s safety and security. The Department encourages visa holders to comply with their conditions by providing information and education. The Department employs measures aimed at locating, detaining and ultimately removing those who are deliberately non-compliant or are engaged in serious non-compliance.

Goods The risks that illicit goods pose to the Australian community remain high. There continue to be numerous attempts to circumvent Australia’s border laws and bring such items into the country. Travel and trade patterns are increasingly complex, with significant growth in the range of goods carried and consequent biosecurity hazards and economic risks. Sea, air and international mail cargo continue to be used to move illicit goods. To counter this the Department continued to improve intelligence capability through increased

data integration and enhanced analytics that allow it to better detect, identify and intercept illicit activity at the border.

During 2016-17, 72,266 air cargo consignments were identified as warranting examination and, of these, 3.8 per cent resulted in the detection of an illicit good. This was a slight improvement from 2.8 per cent on the previous year. From 1 July 2016 to end of June 2017, the Department inspected 58.5 million international mail parcels and letters. Of these, 0.39 per cent were examined in more detail, resulting in 81,282 detections of illicit contraband. The Department also inspected 84,674 sea cargo twenty foot equivalent units (TEUs) during 2016-17, compared with 96,637 in 2015-16. This decrease from the previous year was due to the Department significantly upgrading sea cargo X-ray facilities. These upgrades are now finished and provide a greater capacity to detect the more complex concealments that increasingly are being

used by organised crime. The Department was aware that implementing the upgrade would restrict the number of cargo units it would inspect and in response it increased its visible presence and boosted enforcement in a range of other compliance activities during the period. As a result, the Department’s examination and detection rates were the same as in the previous reporting period.

The Department’s efforts to inspect and examine cargo (sea and air), international mail and passenger streams and its commitment to disrupting the movement of illicit drugs across the border resulted in detections and seizures of significant volumes of illicit goods. The number and weight of the combined drug detections increased in 2016-17, with 43,973 detections weighing 7085 kg recorded. Of these, 24,283 were major illicit, precursor and new psychoactive substance drugs, compared with 37,961 detections in 2015-16, with 18,241 major illicit drugs and precursors, weighing 5076 kg.

ANNUAL PERFORMANCE STATEMENT 91 90

This increase in all metrics for detections reflects better targeting and management of operational activities.

Smuggling of illicit tobacco continues to be a focus of entities trying to breach Australia’s border laws. They are becoming increasingly responsive and resilient to law enforcement interventions and tactics to disrupt and dismantle the involvement of organised crime. The Department’s sea cargo enforcement activities recorded 125 detections of illicit goods weighing 256.90 tonnes compared with 88 detections weighing 64.17 tonnes at the same point in 2015-16. Similarly, the Department’s activities in international mail resulted in the detection and seizure of 54.33 tonnes of illicit tobacco.

The Department’s inspection and examination activities continue to keep illegal firearms out of the community. During 2016-17, 1709 undeclared conventional firearms, parts and accessories were detected. To maintain the

efficiency in detecting undeclared conventional firearms, parts and accessories, the Department has implemented enhanced technology upgrades at its examination facilities, along with targeted prevention and coordinated compliance, deterrence and enforcement measures.

ANNUAL PERFORMANCE STATEMENT 91 90

Results

Table 12: SPM 3.1 - Threats are detected before, at and after the border

KPI 3.1.1 International passengers and crew (air and sea) processed: 3.1.1.1 arrivals 3.1.1.2 departures

Target: Source:

3.1.1.1 arrivals - 19.878 million Corporate Plan 2016-17 p. 37.

3.1.1.2 departures - 19.644 million

Result: 3.1.1.1 arrivals - 21.990 million 3.1.1.2 departures - 21.740 million

KPI 3.1.2 Number of import reports received: 3.1.2.1 air cargo 3.1.2.2 sea cargo

Target: Source:

3.1.2.1 air cargo - 38.0 million Corporate Plan 2016-17 p. 37.

3.1.2.2 sea cargo - 3.2 million

Result: 3.1.2.1 air cargo - 42.1 million 3.1.2.2 sea cargo - 3,180,592

KPI 3.1.3 Percentage of high risk vessels where targeted operational responses were performed

Target: Source:

85-100% Corporate Plan 2016-17 p. 38.

Program 1.1 PBS p. 30.

Result: 70% The data set represents a small number of vessels and therefore a relatively small variance will result in a large deviation in the percentage. Some vessels maintained a high-risk status after intervention at a previous port where they were cleared and this affected the national figure.

ANNUAL PERFORMANCE STATEMENT 93 92

Table 12: SPM 3.1 - Threats are detected before, at and after the border

KPI 3.1.4 Passenger and crew (air and sea) processed: 3.1.4.1 percentage of referrals in relation to immigration clearances 3.1.4.2 percentage of examinations on arrival 3.1.4.3 percentage of detections on arrival following examination 3.1.4.4 percentage of examinations on departure 3.1.4.5 percentage of detections on departure following examination

Target: Source:

3.1.4.1 percentage of referrals in relation Corporate Plan 2016-17 p. 38.

to immigration clearances - 0.65% 3.1.4.2 percentage of examinations on arrival - 0.60% 3.1.4.3 percentage of detections on arrival following examination - 13.5% 3.1.4.4 percentage of examinations on departure - 0.06% 3.1.4.5 percentage of detections on departure following examination - 0.65%

Result: 3.1.4.1 percentage of referrals in relation to immigration clearances - 0.63% 3.1.4.2 percentage of examinations on arrival - 0.57% 3.1.4.3 percentage of detections on arrival following examination - 11.98% 3.1.4.4 percentage of examinations on departure - 0.05% 3.1.4.5 percentage of detections on departure following examination - 7.02%

KPI 3.1.5 Air cargo consignments: 3.1.5.1 percentage of total inspected 3.1.5.2 percentage of inspections leading to an examination 3.1.5.3 percentage of examinations that result in a detection

Target: Source:

3.1.5.1 percentage of total inspected - 5.1% Corporate Plan 2016-17 p. 38.

3.1.5.2 percentage of inspections leading to an examination - 5% 3.1.5.3 percentage of examinations that result in a detection - 3.7%

Result: 3.1.5.1 percentage of total inspected - 4.8% 3.1.5.2 percentage of inspections leading to an examination - 3.61% 3.1.5.3 percentage of examinations that result in a detection - 4.3%

ANNUAL PERFORMANCE STATEMENT 93 92

Table 12: SPM 3.1 - Threats are detected before, at and after the border

KPI 3.1.6 Sea cargo twenty foot equivalent units (TEU): 3.1.6.1 number inspected 3.1.6.2 percentage of inspections leading to an examination 3.1.6.3 percentage of examinations that result in a detection

Target: Source:

3.1.6.1 number inspected34 - ≤101,500 TEU Corporate Plan 2016-17 p. 38.

3.1.6.2 percentage of inspections leading to an examination - 15% 3.1.6.3 percentage of examinations that result in a detection - 3.5%

Result: 3.1.6.1 number inspected - 84,674 3.1.6.2 percentage of inspections leading to an examination - 12.83% 3.1.6.3 percentage of examinations that result in a detection - 3.32%

KPI 3.1.7 International mail items: 3.1.7.1 number inspected 3.1.7.2 percentage of inspections leading to an examination 3.1.7.3 percentage of examinations that result in a detection

Target: Source:

3.1.7.1 number inspected - 50 million Corporate Plan 2016-17 p. 38.

3.1.7.2 percentage of inspections leading to an examination - 0.45% 3.1.7.3 percentage of examinations that result in a detection - 30%

Result: 3.1.7.1 number inspected35 - 58.5 million 3.1.7.2 percentage of inspections leading to an examination - 0.39% 3.1.7.3 percentage of examinations that result in a detection - 35.7%

KPI 3.1.8 Illicit goods: 3.1.8.1 number and weight36 of tobacco detections: a) sea cargo b) international mail

3.1.8.2 number of undeclared detections of conventional firearms, parts and accessories 3.1.8.3 number and weight37 of illicit drug detections 3.1.8.4 value of undeclared currency

Target: Source:

No targets Corporate Plan 2016-17 p. 39.

Result38: 3.1.8.1 number and weight of tobacco detections: a) sea cargo - 125 detections, 256.90 tonnes b) international mail - 59,612 detections, 54.33 tonnes

ANNUAL PERFORMANCE STATEMENT 95 94

34 The Department was aw are that planned upgrades to Container Examination Facilitation technology would have an impact on the number of TEU inspected. This an ticipated impact was represented in the use of a ‘less than’ target. 35 The number of inspections reported is c alculated from an algorithm comprising the total amount of international mail items received

(reported by Australia Post) and inspection percentages for each targeted risk profile, defined by the International Mail Intervention Strat egy. Due to the high volume of items received, individual inspections are not recorded. The number of detections

is recorded within the Detained Goods Management System. 36 Weight may be the confirmed weight (if available) or the gross, net, or estimated weight. 37 Weight may be the confirmed weight (if available) or the gross, net or estimated weight. 38 During 2016-17, the Department iden tified some areas for improvement, including in relation to KPI 3.1.8.3

which will be address

ed within future reporting periods.

Table 12: SPM 3.1 - Threats are detected before, at and after the border

3.1.8.2 number of undeclared detections of conventional firearms, parts and accessories - 1,709 3.1.8.3 number and weight of illicit drug detections - 43,973 detections of which 24,283 were major illicit drugs and precursors weighing 7,085 kilograms 3.1.8.4 value of undeclared currency - $17.2 million

KPI 3.1.9 Percentage of prosecution briefs completed as the result of a formal investigation

resulting in a conviction

Target: Source:

85-95% Corporate Plan 2016-17 p. 39.

Program 1.1 PBS p. 30.

Result: 86%

KPI 3.1.10 Percentage of the total passenger and crew refused immigration clearance at the border (air and sea)

Target: Source:

<0.015% Corporate Plan 2016-17 p. 39.

Program 1.1 PBS p. 30.

Result: 0.018%

KPI 3.1.11 Number of visa refusals based on security or character grounds

Target: Source:

No target Corporate Plan 2016-17 p. 39.

Result: 637

KPI 3.1.12 Number of visa cancellations based on security or character grounds

Target: Source:

No target Corporate Plan 2016-17 p. 39.

Result: 1,837

KPI 3.1.13 Percentage of temporary visa entrants that remain lawful while in Australia

Target: Source:

>99% Corporate Plan 2016-17 p. 39.

Program 1.2 PBS p. 32.

Result:39 >99%

39 This measure seeks t o evaluate the effectiveness of the Department’s regulatory enforcement activities. The reported result of ‘>99 per cent’ indicates that the majority of temporary visa holders remain lawful relative to the overall number of visa grants, and has been consistently reported in this manner for a number of years.

ANNUAL PERFORMANCE STATEMENT 95 94

96

SPM 3.1 Case study

COLLABORATION HALTS $101 MILLION CRYSTAL METHAMPHETAMINE IMPORT

O peration Valencia, a sophisticated joint agency operation conducted by NSW Joint Organised Crime Group (JOCG), comprising members of the ABF, Australian Federal Police (AFP), New South Wales Police, Australian Criminal Intelligence Commission (ACIC) and the New South Wales Crime Commission (NSWCC), led to the successful seizure of more than 100 kg of crystal methamphetamine, commonly known as ‘ice’, from China.

The investigation included Hong Kong national and significant collaboration 22-year-old Fijian national, were with Taskforce Blaze, an AFP charged with offences relating to partnership with the Chinese attempting to import a commercial National Narcotics Control quantity of a border controlled Commission. Information from drug and attempting to possess a Taskforce Blaze disclosed that commercial quantity of a border 101 kg of crystal methamphetamine controlled drug. The maximum were concealed in the floor of a penalty is life imprisonment. shipping container which was being Two men were arrested in used to send two tonnes of steel Guangdong Province for from Yantian Port, China, to an their alleged involvement address in Sydney’s southwest. The in the syndicate. drugs had an estimated street value of $101 million. The information The operation demonstrated the highlighted the benefit of significant ability of Australian law continuous collaboration between enforcement, including the ABF, partner agencies in protecting to detect illicit drugs before they the Australian community. reach the community. Through

strengthened international drug

This unprecedented collaboration law enforcement cooperation between China and Australia and partnerships, threats can be led to the arrest of five men in better understood, and the global Australia and China. The three men spread of drugs and transnational arrested in Australia, a 38-year-old drug trafficking can be detected Australian, 42-year-old and countered successfully.

ANNUAL PERFORMANCE STATEMENT 97

96 ANNUAL PERFORMANCE STATEMENT 97

SPM 3.2 THE BORDER IS STRENGTHENED THROUGH THE CONTROL AND SURVEILLANCE OF THE MARITIME DOMAIN

Analysis

The Australian maritime domain (AMD) is one of the largest in the world. Its total area of more than 10 million square kilometres equates to around 11 per cent of the Earth’s surface. Operating over this vast and often dangerous domain is Maritime Border Command (MBC), a multi-agency task force within the Australian Border Force comprising ABF and Australian Defence Force (ADF) personnel.

MBC is Australia’s lead civil maritime security authority. It primarily operates offshore to safeguard the AMD against a variety of threats and maintains surveillance operations 24 hours a day, 365 days a year. It undertakes aerial and on-water surveillance and coordinates maritime enforcement operations through assigned ABF and ADF assets. During 2016−17, ABF patrol vessels assigned to the MBC completed 262640 vessel patrol days. This was

in addition to patrols by ADF vessels reported separately.

Vessel patrols are complemented by intelligence-informed aerial surveillance using RAAF P3 Orions, contracted Dash-8 aircraft and contracted helicopters. Most operations focus on the high-risk areas of Christmas Island and the Cocos (Keeling) Islands, as well as the northern approaches to the Australian continent.

The ABF had an aerial patrol target of 136 million square nautical miles for 2016−17 and at 30 June 2017 had completed patrols over about 119 million square nautical miles.

MBC continues to work closely with other Government agencies, including state and territory police, to intercept vessels trafficking border-controlled drugs into Australia. On 2 February 2017 the ABF, in

a joint operation with NSW and federal police, conducted an on-water interception and boarding which resulted in Australia’s largest ever haul of cocaine, weighing 1,422 kg (1.4 tonnes) and having an estimated value of $312 million.

MBC leads the operational task group for maritime response under Operation Sovereign Borders, Australia’s whole-of-government operation designed to combat maritime people smuggling and protect Australia’s borders. In 2016−17, 37 people from three illegal people smuggling vessels were intercepted at sea and returned to their country of origin or departure. No people smuggling vessels arrived in Australia.

MBC also protected Australia’s fishing industry, natural resources and environment by dismantling illegal, unregulated and

40 Includes ABFCs Oce an Shield and Thaiyak.

ANNUAL PERFORMANCE STATEMENT 99 98

unreported syndicates. in the net and had to be cut exercises for 2017, which MBC apprehended 15 free. One turtle measured 60 will involve Australian illegal foreign fishing centimetres in length and Government agencies and vessels (FFV), resulting in weighed an estimated 15-20 state and territory police. 192 foreign fishers being kg. It was alive but sluggish, Activities will focus on detained and processed. having ingested some rope, command decision-making,

part of which was hanging strategic communications,

More than 99 per cent of from its mouth and the other links to the National Crisis vessels identified through end from its rectum. After Committee and interaction surveillance were operating the rope was removed the with state and Northern in compliance with turtle swam to depth with Territory jurisdictions. Australian requirements. no apparent problems. The Less than 1 per cent of vessels second turtle was alive and Successes in 2016-17 came in the Australian Exclusive vigorous, with a measured as the ABF faced multiple Economic Zone (AEEZ) 60 centimetres length and challenges. The ABF had a were non-compliant and weighed an estimated 12-15 2016−17 target of 3320 vessel MBC responded to almost kg. After being freed from the patrol days but at 30 June 80 per cent of them. netting, it was released and 2017 ABF vessels completed

swam to depth. Neither turtle 2626 vessel patrol days.

In parallel with fisheries had tags and their sex is The shortfall was primarily protection work, MBC also unknown. A small amount of the result of ongoing work responds to other maritime highly decomposed remains, to rectify defects with the threats, including marine apparently a small turtle, Cape Class patrol boats. pollution. On 30 November was also found in the net. The ABF is working closely 2016 the Australian Border with contracted parties to

Force Cutter (ABFC) Cape During 2016-17, MBC remediate availability issues. Leveque located a ghost net in demonstrated its ability the Arafura Sea, 32 nautical to coordinate a whole- While the P3 Orion target miles north-north-west of of-government maritime was achieved, coverage for Croker Island. The green counter-terrorism event the period was below the nylon gillnet weighed an by conducting a simulated PBS target, primarily estimated 250-500 kg. Two exercise. MBC also began because assets were turtles were found trapped developing a suite of re-assigned, flights

ANNUAL PERFORMANCE STATEMENT 99 98

cancelled, and crew issues affected Dash-8 capability. Aircraft maintenance, weather and crew issues were the causes of most of the partially completed missions for 2016-17.

In January 2017 the ABF issued the Dash-8 service provider with an official breach notice over its inability to meet the stipulated contract hours. The provider acknowledged

the deficiencies and responded with planning projections to overcome the problem. There is early evidence that the availability of aerial assets will improve as a result of recruiting initiatives by the contractor to address crew shortfalls. The ABF has maintained a close watch on the progress of improvements and will apply contractual leverage as appropriate.

The sheer size of the AEEZ means that the ABF has a challenging mission in ensuring that the Australian border is strengthened through the control and surveillance of the maritime domain. Despite successes, new challenges can be expected to arise. MBC, within the ABF, will continue to operate within the AMD to protect Australia’s interests.

Results

Table 13: SPM 3.2 - The border is strengthened through the control and surveillance of the maritime domain

KPI 3.2.1 Number of vessel patrol days

Target: Source:

3,320 Corporate Plan 2016-17 p. 40.

Programme 1.1 PBS p. 30.

Result: 2,62641

KPI 3.2.2 Joint ABF and ADF aircraft coverage

Target: Source:

136 million square nautical miles Corporate Plan 2016-17 p. 40.

Programme 1.1 PBS p. 30.

Result: 119.15 million square nautical miles

KPI 3.2.3 Number of people on-board people smuggling vessels not able to be transferred to a regional processing centre or returned

Target: Source:

0 Corporate Plan 2016-17 p. 40.

Result: 0

41 Includes ABFCs Oc ean Shield and Thaiyak.

ANNUAL PERFORMANCE STATEMENT 101 100

Table 13: SPM 3.2 - The border is strengthened through the control and surveillance of the maritime domain

KPI 3.2.4 The percentage of vessels identified through surveillance operating in a compliant manner in the maritime domain

Target: Source:

>90% Corporate Plan 2016-17 p. 40.

Result: 99.9%

KPI 3.2.5 The percentage of non-compliant vessels, identified through surveillance, where law enforcement responses were performed

Target: Source:

>50% Corporate Plan 2016-17 p. 40.

Result: 79%

KPI 3.2.6 Ability to coordinate a whole-of-government maritime counter terrorism event

Target: Source:

1 exercise Corporate Plan 2016-17 p. 40.

Result: 1 exercise

KPI 3.2.7 Number of illegal foreign fishing vessels apprehended and processed

Target: Source:

<40 Corporate Plan 2016-17 p. 40.

Result: 15

KPI 3.2.8 Number of illegal foreign fishers apprehended and processed

Target: Source:

25 Corporate Plan 2016-17 p. 40.

Result: 192

ANNUAL PERFORMANCE STATEMENT 101 100

102

SPM 3.2 Case study

MARITIME BORDER COMMAND CUTS OFF $312 MILLION COCAINE IMPORTATION

I n February 2017 a two-year operation culminated in MBC intercepting cocaine worth around $312 million before it could be landed in Australia.

The seizure of more than 1.4 tonnes of cocaine was the largest haul in Australia’s history and was the result of an AFP investigation supported by the New Zealand Customs Service, the Organised Financial Crime Agency of New Zealand, the Fijian Transnational Crime Unit, French Polynesian authorities and the ABF.

On 2 February 2017, while assigned to MBC, HMAS Bathurst intercepted the yacht Elakha off the NSW south coast. MBC officers boarded the vessel and discovered black bags containing a large quantity of blocks. Two crew members, a 63-year-old New Zealand man and a 54-year-old Swiss/Fijian dual national, were detained under the Maritime Powers Act 2013. Initial testing of the blocks returned a positive result for cocaine. The blocks weighed an estimated 1422 kg.

On 3 February 2017 two Sydney men, aged 63 and 62, travelled to the NSW south coast, where they met a 66-year-old man. Police will allege the three men intended to launch a motor vessel to meet the Elakha at sea before returning to shore with the drugs. The AFP arrested and charged the three men

with conspiracy to import a commercial quantity of a border-controlled drug. They appeared in Nowra Local Court on 4 February 2017 and were refused bail.

On 3 February 2017 police in Sydney arrested a fourth man who is also alleged to be involved in the conspiracy to import the cocaine.

On 5 February 2017, HMAS Bathurst returned to Sydney with the Elakha and its detained crew. The two men were arrested on arrival, and were later also charged with conspiracy to import a commercial quantity of a border-controlled drug. Six men, aged between 32 and 66, have been charged with serious drug importation offences as a result of the investigation.

MBC’s interception of the illicit drug means that it cannot harm vulnerable members of the community and that the organised crime groups behind the attempted import will not profit from trafficking.

This case is just one example of how the ABF strengthens Australia’s borders through control and surveillance of the maritime domain.

ANNUAL PERFORMANCE STATEMENT 103

102

The alleged cocaine smuggling vessel, the Elakha, in port after being intercepted by law enforcement.

ANNUAL PERFORMANCE STATEMENT 103

SPM 3.3 COLLABORATION WITH PARTNERS WITHIN AND OUTSIDE AUSTRALIA IMPROVES BORDER SECURITY

Analysis

Australia continues to play a leadership role in countering irregular migration in our region. Australia leads efforts to stop people smuggling, human trafficking and modern slavery as co-chair, with Indonesia, of the Bali Process on People Smuggling, Trafficking in Persons and Related Transnational Crime (the Bali Process).

Operation Sovereign Borders (OSB) is the whole-of-government border security operation that combats maritime people smuggling and protects Australia’s borders. Under OSB there has been a substantial reduction in the number of people smuggling ventures attempting to reach Australia. Since OSB began in September 2013 more than 770 people from 31 people smuggling vessels have been intercepted and returned.

The Department supports and participates in multilateral fora to foster cooperation and mutual assistance aimed

at strengthening the management of regional borders and entry systems. In 2016-17, these included: • The annual Pacific

Immigration Directors’ Conference (PIDC) meeting, a forum for the heads of official immigration agencies in the Pacific, held in June 2017. • The annual Oceania

Customs Organisation (OCO) conference in May 2017, a forum for Oceania customs administrations to cooperate on joint initiatives and discuss customs issues. • The Association of

Southeast Asian Nations (ASEAN)-Australia Workshop on Regional Training Cooperation in August 2016, which provided a forum for training experts from ASEAN member states and Australia to discuss current and emerging training needs and priorities. • Activities relating to the

Bali Process, including

continuing support to the Regional Support Office (RSO) in Bangkok. Key RSO outputs during this time included creating products to help frontline officers interview victims of trafficking, delivering training to Bali Process member states, hosting foreign officials to enhance their states’ responses to trafficking in persons and other border management issues, and developing a website to strengthen member states’ counter-trafficking responses and policies. • The Regional Cooperation

Agreement on Combatting Piracy and Armed Robbery against Ships in Asia (ReCAAP), which promotes safety and communication to counter piracy and armed robbery at sea. ReCAAP was instrumental in bringing about a 58 per cent reduction in the number of reported incidents from 203 in 2015 to 85 in 2016. • A Pacific Maritime

Domain Awareness

ANNUAL PERFORMANCE STATEMENT 105 104

(MDA) Workshop in April 2017, which the Department co-hosted with the Federated States of Micronesia. Twenty Pacific countries and territories participated in the workshop along with multilateral organisations including the PIDC, the OCO and the Forum Fisheries Agency. The conference focused on enhancing the collective understanding of the importance of MDA in the Pacific and the benefits of working together on MDA activities.

As the lead agency for migration and trade matters, the Department coordinated and delivered a range of multilateral initiatives to strengthen border management in the region and internationally. In 2016−17, these included: • In September 2016,

the Department hosted a World Customs Organization (WCO) AsiaPacific Regional Workshop on

NonIntrusive Inspection (NII) in Melbourne. DIBP officers presented sessions on topics such as ‘Detecting Contraband in Mail using NII’ and X-ray image analysis. A delegate from each country attending (32 participants in total) shared information on the technologies and processes on NII that their country uses. • In May 2017, the

Department hosted a joint WCO-Universal Postal Union (UPU) workshop in Sydney. The workshop was attended by over 100 participants from the Asia/Pacific region. It provided an excellent opportunity for Australia to strengthen its influence in the WCO and highlight Australia’s capabilities in electronic advance data, risk assessment and targeting in the postal environment, combatting illicit trade, and streamlining processes and revenue collection. • In January 2017, the

Department hosted a series of meetings in Canberra to progress the development of the WCO Asia-Pacific Regional Strategic Plan 2018−20. The meetings were attended by WCO members from the Asia- Pacific region, including Hong Kong, Japan, Malaysia, New Zealand, Papua New Guinea and Sri Lanka. The Department hosted this event in support of Fiji as the newly appointed WCO Asia- Pacific region Vice Chair. • A Regional Illicit Tobacco

Enforcement Package was initially developed by the ABF in collaboration with regional partners including Hong Kong and Fiji, and presented by the WCO Regional Intelligence Liaison Office Asia-Pacific (RILO AP) at the Asia-Pacific Regional Heads of Customs Administrations meeting in early March 2017, where it was endorsed by members. The package was subsequently

ANNUAL PERFORMANCE STATEMENT 105 104

presented by RILO AP at the WCO Enforcement Committee in Brussels in late March 2017, where it was positively received.

The Department conducts a range of senior meetings and activities with counterpart immigration and border control agencies to support bilateral engagement on border security issues. In 2016−17, key bilateral engagements included: • Official port visits to Sri

Lanka and India in May 2017 by the Australian Border Force Cutter (ABFC) Ocean Shield. • A Department-led

whole-of-government Joint Working Group on Transnational Crime with Malaysia in Canberra in May 2017, which focused on transnational threats, including cooperation to counter people smuggling. • A Maritime Security

Desktop Exercise co-chaired by the ABF and BAKAMLA (the Indonesian Coast Guard) in May 2017, which included delegates from 16 other regional countries. • Several high-level

engagements with heads of Papua New

Guinea immigration and customs, including at ministerial, secretary and commissioner level, on issues ranging from border and civil-maritime security, traditional movements in the Torres Strait to joint security exercises.

Strategic Border Command and MBC provided operational-level support to regional partners in 2016-17, including: • Coordinated or joint

activities with Indonesia, Papua New Guinea, the United States, New Zealand and France (New Caledonia). • Regular joint cross-border

patrols in the Torres Strait Protected Zone with Papua New Guinea. • Provision of aerial surveillance based on requests from regional neighbours and partners, including France (New Caledonia), New Zealand, Indonesia, the US and Papua New Guinea.

The Department funds capacity-building activities with partner countries. These are delivered by the Department or non-

government organisations. In 2016−17, these activities included: • The Regional Skills

Development Programme, which delivered 51 activities to 1083 participants from 49 countries. Training was delivered in Australia and overseas by departmental and ABF specialists in such areas as document examination, intelligence analysis, investigations, vessel search, strategic trade controls (counter-proliferation), counter terrorism, facial image comparison and X-ray image analysis. • The English Language

Training (ELT) Programme, that aims to enhance the English-language skills of foreign border officials, enabling better cooperation on border security issues. During 2016−17 the ELT Programme developed the skills of 567 participants—484 through overseas courses and 83 in Australia. • The Border Control

Agency Management Programme (BCAMP), a series of intensive three-week courses for middle

ANNUAL PERFORMANCE STATEMENT 107 106

managers with border control responsibilities within South East Asia and surrounding regions. Since its inception in 2009, 17 courses have been delivered to 342 participants by the Royal Melbourne Institute of Technology Vietnam campus. In 2016−17, 22 Vietnamese participants were trained in the sixteenth course, and 20 participants from nine regional countries in the seventeenth course. • Funding provided to the

International Organization for Migration (IOM) to build an integrated border management model in Sri Lanka. This aims to strengthen Sri Lanka’s national border management by enhancing its legal, institutional and technical capacity. • Funding provided to IOM

to deliver phase six of a border management training programme in Iraq. This aims to strengthen lawful migration across Iraq’s borders while enhancing the detection and deterrence of improperly documented passengers.

In addition t

o directly

funded capacity building activities, in 2016−17 the Department actively supported the Department of Foreign Affairs and Trade-led Strongim Gavman Program. This is a whole-of-government engagement programme involving Australian Government agencies in providing capacity development assistance and advice to counterpart Papua New Guinea Government agencies. During 2016−17, this programme supported the deployment of long-term embedded departmental advisors to Papua New Guinea’s immigration and customs agencies, as well as 24 specialised short-term deployments for specific projects, ranging from four weeks to 11 months in duration.

The Regional Cooperation Arrangement (RCA) in Indonesia is an important element of Australia’s approach to managing the risk of travel by potential illegal immigrants to Australia from Indonesia. Under the RCA, Australia funds the IOM to provide services to irregular

migrants held in Indonesian detention and community accommodation facilities. These services include assisted voluntary return and the provision of food, transport, counselling and medical care. This support provides irregular migrants with an alternative to illegal migration or a protracted stay in Indonesia.

Consistent with regional processing arrangements, the Department continues to support the Governments of Nauru and Papua New Guinea to resettle persons they have determined to be refugees. On 13 November 2016, Prime Minister Turnbull announced that Australia had reached a one-off resettlement arrangement with the United States for refugees in Nauru and Papua New Guinea. Implementation of the US Resettlement Arrangement is progressing.

The Department supported the Governments of PNG and Nauru through capacity building for voluntary returns and involuntary removals; and provided support for people requesting assistance to return voluntarily to their

ANNUAL PERFORMANCE STATEMENT 107 106

country of origin or a third country where they have the right to enter or reside. In 2016−17, the Department assisted 60 persons42 subject to regional processing arrangements with their request to depart voluntarily from PNG and Nauru.

The Department continued to assist the Government of Cambodia by funding settlement services for refugees settled under the Memorandum of Understanding. Settlement services help these refugees to integrate into Cambodian society.

42 In 2016-17 there wer e a total of 63 voluntary returns of persons subject to regional processing arrangements. Of these 63 cases three were not funded by DIBP, and have not been included within the assisted voluntary return figures.

ANNUAL PERFORMANCE STATEMENT 109 108

Results

Table 14: SPM 3.3 - Collaboration with partners within and outside Australia improves border security

KPI 3.3.1 Percentage of states43 receiving Australian assistance which have implemented processes and/or systems that have led to an improvement in the management of migration and border outcomes, including the management of refugees

Target: Source:

50% Corporate Plan 2016-17 p. 41.

Programme 1.5 PBS p. 37.

Result: 84%

KPI 3.3.2 Number of foreign and partner agency counterparts globally where training and capability development is successfully delivered

Target: Source:

1,500 Corporate Plan 2016-17 p. 41.

Programme 1.5 PBS p. 37.

Result: 12,32744

KPI 3.3.3 Number of major capacity-building projects funded

Target: Source:

No target Corporate Plan 2016-17 p. 41.

Result: 56

KPI 3.3.4 Number of people trained through capacity-building projects

Target: Source:

1,500 Corporate Plan 2016-17 p. 41.

Result: 12,327

43 Refers to countries receiving Australian assistance. 44 KPIs 3.3.2 and 3.3.4 measure the same data. This is due to a PBS indicator added to Corporate Plan 2016-17 aft

er KPI 3.3.4 was created.

ANNUAL PERFORMANCE STATEMENT 109 108

Table 14: SPM 3.3 - Collaboration with partners within and outside Australia improves border security

KPI 3.3.5 Arrangements in place that: 3.3.5.1 support the regional processing country to assess the protection claims of transferees 3.3.5.2 support the regional processing country to accommodate and provide services, including welfare and health, to transferees pending assessment of protection claims 3.3.5.3 support regional partners to settle transferees found to be in need of international protection 3.3.5.4 support regional processing countries to voluntarily return or remove those found not to be refugees

Target: Source:

No target Corporate Plan 2016-17 p. 41.

Programme 1.4 PBS p. 35.

Result: 3.3.5.1 support the regional processing country to assess the protection claims of transferees45 There were 902 people in PNG after being transferred from Australia under the Regional Resettlement Arrangement (RRA). Of these 900, or more than 99 per cent, had received a Minister’s Final Determination (MFD)46. A further 52 people were in Australia on medical transfer, yet to return to PNG. Of these, 22 had received a MFD. There were 1,12947 people in Nauru after being transferred from Australia under the Memorandum of Understanding (MoU) with Nauru. Of these 1,129 people, all had received a primary Refugee Status Determination (RSD). A further 362 people were in Australia on medical transfer or accompanying family. Of these 362 people, 87 had received a primary RSD.

3.3.5.2 support the regional processing country to accommodate and provide services, including welfare and health, to transferees pending assessment of protection claims The Department has contracts with organisations for garrison and welfare services, health services and claims assistance to help transferees in regional processing countries, pending assessment of their protection claims. The Department ensures appropriate services are provided through contractually required governance and meeting arrangements with key service provider personnel and established performance management frameworks. The Department has regular discussions with host governments to ensure that services are delivered in support of operational, whole-of-government, diplomatic and political directions. The Department also engages with host governments to ensure that appropriate health care is provided, reflecting clinical outcomes commensurate with local standards.

3.3.5.3 support regional partners to settle transferees found to be in need of international protection The Department continues to support the Governments of Nauru and PNG to resettle people they have determined to be refugees. On 13 November 2016 Prime Minister Turnbull and Minister Dutton announced that Australia had reached a new resettlement arrangement with the United States of America for refugees in a regional processing country. Implementation of the US arrangement is progressing, with US officials conducting interviews during several visits to both countries. Australia also supported arrangements for Nauru to increase a refugee’s stay in Nauru from 10 to 20 years, continued to support Nauru-determined refugees resettling in Cambodia under the Cambodia settlement arrangement, and supported PNG to settle refugees. Support was also provided to anyone independently seeking entry to a third country where they have the right to enter and reside.

3.3.5.4 support regional processing countries to voluntarily return or remove those found not to be refugees The Department supported the Governments of PNG and Nauru through capacity building for voluntary returns and involuntary removals, and assisted people asking to return voluntarily to their country of origin or a third country where they have a right to reside. In 2016-17, the Department assisted 6048 people subject to regional processing arrangements with their request to depart voluntarily from PNG and Nauru.

45 Figures are based on DIBP operational data. Nauru figures includes children born to transferees or r efugees who may be linked to the parent’s Refugee Status Determination (RSD). 46 The final decision stage in the PNG R efugee Status determination process where the Minister determines

if the transferee is considered to be a refugee or a non-refugee. 47 Includes five people (all with a primary RSD) r esiding in Port Moresby for medical treatment.

ANNUAL PERFORMANCE STATEMENT 111 110

Table 14: SPM 3.3 - Collaboration with partners within and outside Australia improves border security

KPI 3.3.6 Number of joint maritime operations with regional partners

Target: Source:

>5 Corporate Plan 2016-17 p. 41.

Result: 6

KPI 3.3.7 Percentage of task requests from client agencies where an operational response to a maritime threat was provided

Target: Source:

>60% Corporate Plan 2016-17 p. 41.

Result: 77%

48 In 2016-17 ther e were a total of 63 voluntary returns of person subject to regional processing arrangements. Of these 63 cases, three were not funded by DIBP, and have not been included within the assisted voluntary return figures.

ANNUAL PERFORMANCE STATEMENT 111 110

112

Officer of the Guard, Lieutenant PJ Bakelmun welcomes Commanding Officer of Ocean Shield, Superintendent Alan Champkin to Sri Lanka.

SPM 3.3 Case study

CIVIL MARITIME SECURITY COOPERATION REACHES A MILESTONE

I n May 2017 the ABFC Ocean Shield conducted port visits to Trincomalee, Sri Lanka, and Chennai, India, reciprocating a port visit made by the Indian Coast Guard Ship Sankalp to Darwin in 2014.

As the first overseas port visit by an ABF vessel, the trip was a major milestone in civil maritime security cooperation.

A high-level delegation accompanied the visit, including the ABF Commissioner, Roman Quaedvlieg, the Commander Joint Agency Task Force, Air Vice-Marshal Stephen Osborne, and Deputy Commander Maritime Border Command, Jo Crooks.

The ABFC Ocean Shield and its crew took part in a range of activities to strengthen the Department’s relationships with Sri Lankan and Indian counterpart

agencies. These included tours of ABFC Ocean Shield for representatives from counterpart agencies and participation in exercises with the Sri Lankan Navy and the Indian Coast Guard to enhance operational cooperation.

The visit demonstrated the Department’s commitment to bilateral and regional cooperation. Staff from the Department and from Indian and Sri Lankan agencies developed person-to-person links at the working and senior levels. The visit increased India’s and Sri Lanka’s awareness of Australia’s maritime security threats, responses, and operational capability.

ANNUAL PERFORMANCE STATEMENT 113

112 ANNUAL PERFORMANCE STATEMENT 113

Report on financial performance

PART 3

PART 3: Report on financial performance

Part 3: Report on financial performance

SUMMARY OF FINANCIAL PERFORMANCE

T he Department’s complete financial results for 2016-17 are available in the financial statements that form Part 4 of this annual report.

Departmental operating result

The 2016-17 financial statements report a $276.6 million operating deficit compared with a $299.2 million operating deficit in 2015-16. The Australian

Government has not funded depreciation and amortisation expenses since 2010-11. In 2016-17 the Department incurred $285.3 million in depreciation and

amortisation expenses. Had these items been funded, the 2016-17 result would have been an $8.7 million surplus.

Administered program performance

The Department’s 2016-17 administered expenses were $2,116.8 million, which was lower than budget and the prior year figure of $2,307.0 million. The variance is

mainly attributable to lower supplier costs due to lower rates of returns and removals, underspends in legal costs, and lower personal benefits expense

due to a reduction in the number of people receiving Income Support payments as part of the Status Resolution Support Services Program.

REPORT ON FINANCIAL PERFORMANCE 117 116

Net assets

Overall, the Department’s 2016-17 net asset position of $1,169.0 million (assets minus liabilities) increased in comparison with 2015-16 by $24.3 million.

The Department had a strong net asset position at 30 June 2017 whereby liabilities equated to 37 per cent of the total asset base.

REPORT ON FINANCIAL PERFORMANCE 117 116

All Outcomes - Summary Expense and Capital Expenditure 2016-17

Budget Actual Expenses

2016-17

a 2016-17

$’000 $’000

Administered    

 

Expenses funded through revenue appropriations

b

   

Outcome 1:

Protect Australia’s sovereignty, security

and safety by managing its border, including through

2,199,283 1,895,778

managing the stay and departure of all non-citizens. Outcome 2:

Support a prosperous and inclusive society,

and advance Australia’s economic interests through

51,550 49,292

the effective management of the visa and citizenship programs

and provision of refugee and humanitarian assistance. Outcome 3:

Advance Australia’s economic interests through

the facilitation of the trade of goods to and from Australia

- -

and the collection of border revenue. Total Administered Expenses funded through revenue appropriations

2,250,833 1,945,070

Total Administered Capital Expenditure

186,134 83,056

118 REPORT ON FINANCIAL PERFORMANCE 119

Budget Actual Expenses

2016-17

a 2016-17

$’000 $’000

Departmental    

Expenses funded through revenue appropriations

b

   

Outcome 1:

Protect Australia’s sovereignty, security and safety

by managing its border, including through managing the stay

1,688,151 1,683,399

and departure of all non-citizens. Outcome 2:

Support a prosperous and inclusive society,

and advance Australia’s economic interests through

766,796 827,820

the effective management of the visa and citizenship programs

and provision of refugee and humanitarian assistance. Outcome 3:

Advance Australia’s economic interests through

the facilitation of the trade of goods to and from Australia

118,770 108,914

and the collection of border revenue. Total Departmental Expenses funded

2,573,717 2,620,133

through revenue appropriations Total Departmental Capital Expenditure

309,883 277,286

a. Budget relates to the revised budget estimates reported in the PAES 2016-17.

b. Expenses funded through revenue appropriations exclude expenses related to depreciation and amortisation,

write down and impairment of assets.

118 REPORT ON FINANCIAL PERFORMANCE 119

PART 4: Financial statements

Financial statements

PART 4

INDEPENDENT AUDITOR’S REPORT 122

STATEMENT BY THE SECRETARY AND THE CHIEF FINANCE OFFICER 126

FINANCIAL STATEMENTS 128

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

140

INDEPENDENT AUDITOR’S REPORT

FINANCIAL STATEMENTS 123 122

FINANCIAL STATEMENTS 123 122

FINANCIAL STATEMENTS 125 124

FINANCIAL STATEMENTS 125 124

STATEMENT BY THE SECRETARY AND CHIEF FINANCE OFFICER

FINANCIAL STATEMENTS 127 126 126

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FINANCIAL STATEMENTS 127 126 126

FINANCIAL STATEMENTS

Statement of Comprehensive Income For the period ended 30 June 2017

Notes

2017 $’000

2016 $’000

Original Budget $’000

Net cost of services        

Expenses        

Employee benefits 6.1A 1,409,374 1,451,000 1,355,668

Suppliers 1.1A 1,207,851 1,228,253 1,155,628

Depreciation and amortisation 3.2A 285,258 277,511 232,453

Writedown and impairment of assets 1.1B 18,978 15,716 -

Finance costs   479 1,447 -

Other expenses   2,429 12,220 -

Total expenses   2,924,369 2,986,147 2,743,749

Own-source income        

Own-source revenue        

Sale of goods and rendering of services 1.2A 116,425 109,475 106,780

Recovery of costs 1.2B 37,340 35,695 34,159

Electronic travel authority fees   12,155 17,022 -

Rental income 1.2C 2,619 3,662 3,595

Software royalties   3,023 2,854 2,700

Other revenue 1.2D 11,115 20,249 7,778

Total own-source revenue   182,677 188,957 155,012

       

Gains        

Other gains 1.2E 5,123 3,021 33

Total gains   5,123 3,021 33

Total own-source income   187,800 191,978 155,045

       

Net cost of services   (2,736,569) (2,794,169) (2,588,704)

Revenue from Government   2,459,934 2,494,929 2,356,251

Deficit attributable to the Australian Government   (276,635) (299,240) (232,453)

       

Other comprehensive income        

Items not subject to subsequent reclassification to net cost of services        

Changes in asset revaluation surplus   (2,035) (3,569) -

Total other comprehensive income   (2,035) (3,569) -

Total comprehensive income   (278,670) (302,809) (232,453)

The above statement should be read in conjunction with the accompanying notes. Refer to Note 8.1 for explanations of major budget variances.

FINANCIAL STATEMENTS 129 128 FINANCIAL STATEMENTS 129 128

Statement of Financial Position As at 30 June 2017

Original

2017 2016 Budget

Notes $’000 $’000 $’000

Assets            

Financial assets            

Cash and cash equivalents 3.1A 4,214   3,409   6,547

Trade and other receivables 3.1B 499,289   518,425   523,484

Accrued revenue   3,661   2,010   41,910

Other financial assets   1,111   1,681   1,338

Total financial assets   508,275   525,525   573,279

Non-financial assets            

Land 3.2A 20,229   24,291   23,365

Buildings 3.2A 37,543   45,006   58,552

Leasehold improvements 3.2A 104,119   109,798   142,845

Vessels 3.2A 370,089   392,352   429,718

Plant and equipment 3.2A 221,011   234,042   256,332

Computer software 3.2A 514,157   477,157   516,745

Inventories held for distribution   22,140   23,907   12,813

Other non-financial assets 3.2B 60,754   50,111   47,567

Total non-financial assets   1,350,042   1,356,664   1,487,937

Total assets   1,858,317   1,882,189   2,061,216

Liabilities            

Payables            

Suppliers 3.3A 230,327   264,222   238,749

Other payables 3.3B 26,161   17,298   15,079

Total payables   256,488   281,520   253,828

Interest bearing liabilities            

Finance leases   -   -   389

Total interest bearing liabilities   -   -   389

Provisions            

Employee provisions 6.1B 397,253   417,726   449,726

Other provisions 3.4A 35,534   38,210   43,610

Total provisions   432,787   455,936   493,336

Total liabilities   689,275   737,456   747,553

Net assets   1,169,042   1,144,733   1,313,663

Equity            

Contributed equity   2,410,844   2,106,465   2,427,407

Reserves   239,667   241,702   245,269

Accumulated deficit   (1,481,469)   (1,203,434)   (1,359,013)

Total equity   1,169,042   1,144,733   1,313,663

The above statement should be read in conjunction with the accompanying notes. Refer to Note 8.1 for explanations of major budget variances.

FINANCIAL STATEMENTS 129 128 FINANCIAL STATEMENTS 129

Statement of Changes in Equity For the period ended 30 June 2017

Original

2017 2016 Budget

$’000 $’000 $’000

Contributed equity            

Opening balance            

Balance carried forward from previous period   2,106,465   768,267   2,109,709

Adjusted opening balance   2,106,465   768,267   2,109,709

Transactions with owners            

Distributions to owners            

Return of contributed equity   -   (17,488)   -

Contributions by owners            

Equity injection - Appropriations   183,860   226,857   197,179

Departmental capital budget   120,519   116,639   120,519

Restructuring   -   1,012,190   -

Total transactions with owners   304,379   1,338,198   317,698

Closing balance as at 30 June   2,410,844   2,106,465   2,427,407

             

Reserves            

Opening balance            

Balance carried forward from previous period   241,702   154,546   245,269

Adjusted opening balance   241,702   154,546   245,269

Comprehensive income            

Other comprehensive income   (2,035)   (3,569)   -

Total comprehensive income   (2,035)   (3,569)   -

Transactions with owners            

Contributions by owners            

Restructuring   -   90,723   -

Other movements   -   2   -

Total transactions with owners   -   90,725   -

Closing balance as at 30 June   239,667   241,702   245,269

FINANCIAL STATEMENTS 131 130

Statement of Changes in Equity For the period ended 30 June 2017

Original

2017 2016 Budget

$’000 $’000 $’000

Accumulated deficit            

Opening balance            

Balance carried forward from previous period   (1,203,434)   (474,196)   (1,126,561)

Adjustments to prior year’s surplus/deficit   (1,401)   2,601   -

Adjusted opening balance   (1,204,835)   (471,595)   (1,126,561)

Comprehensive income            

(Deficit) for the period   (276,635)   (299,240)   (232,453)

Total comprehensive income   (276,635)   (299,240)   (232,453)

Transactions with owners            

Distributions to owners            

Return of contributed equity   -   (3,275)   -

Contributions by owners            

Restructuring   -   (429,318)   -

Other movements   1   (6)   -

Total transactions with owners   1   (432,599)   -

Closing balance as at 30 June   (1,481,469)   (1,203,434)   (1,359,014)

             

Total equity   1,169,042   1,144,733   1,313,662

The above statement should be read in conjunction with the accompanying notes. Refer to Note 8.1 for explanations of major budget variances.

FINANCIAL STATEMENTS 131 130

Cash Flow Statement For the period ended 30 June 2017

Original

2017 2016 Budget

Notes $’000 $’000 $’000

Operating activities            

Cash received            

Goods and services   113,817   161,222   115,642

Appropriations   2,636,608   2,765,374   2,355,236

Net GSTa received   124,574   116,184   103,049

Other   40,473   50,187   34,972

Total cash received   2,915,472   3,092,967   2,608,899

             

Cash used            

Employees   1,424,048   1,509,782   1,367,010

Suppliers   1,316,321   1,310,906   1,241,889

Section 74 receipts transferred to the OPAb   155,054   211,194   -

Other   80   12,396   -

Total cash used   2,895,503   3,044,278   2,608,899

Net cash from operating activities   19,969   48,689   -

             

Investing activities            

Cash received            

Proceeds from sale of non-financial assets   342   53   -

Total cash received   342   53   -

             

Cash used            

Purchase of non-financial assets   313,943   325,329   317,698

Total cash used   313,943   325,329   317,698

Net cash (used by) investing activities   (313,601)   (325,276)   (317,698)

FINANCIAL STATEMENTS 133 132

Cash Flow Statement For the period ended 30 June 2017

Original

2017 2016 Budget

Notes $’000 $’000 $’000

Financing activities            

Cash received            

Contributed equity   294,437   273,839   317,698

Restructuring   -   4,830   -

Total cash received   294,437   278,669   317,698

             

Cash used            

Repayment of borrowings (finance leases)   -   389   -

Total cash used   -   389   -

Net cash from financing activities   294,437   278,280   317,698

             

Net increase in cash held   805   1,693   -

Cash and cash equivalents at the beginning of the reporting period   3,409   1,716   6,547

Cash and cash equivalents at the end of the reporting period 3.1A 4,214   3,409   6,547

a. Goods and Services Tax (GS T) b. Official Public Accoun t (OPA)

The above statement should be read in conjunction with the accompanying notes. Refer to Note 8.1 for explanations of major budget variances.

FINANCIAL STATEMENTS 133 132

Administered Schedule of Comprehensive Income For the period ended 30 June 2017

Original

2017 2016 Budget

Notes $’000 $’000 $’000

Net cost of services            

Income            

Revenue            

Taxation revenue            

Customs duty 2.1A 14,195,185   14,044,689   14,009,200

Other taxes 2.1A 3,483,130   3,214,364   3,411,762

Total taxation revenue   17,678,315   17,259,053   17,420,962

             

Non-taxation revenue            

Immigration fees 2.1B 51,600   41,943   48,066

Other revenue 2.1B 15,991   21,361   17,682

Total non-taxation revenue   67,591   63,304   65,748

Total revenue   17,745,906   17,322,357   17,486,710

             

Gains            

Other gains   5,700   2,710   -

Total gains   5,700   2,710   -

Total income   17,751,606   17,325,067   17,486,710

             

Expenses            

Suppliers 2.2A 1,604,192   1,715,411   1,718,525

Personal benefits 2.2B 322,131   401,825   382,085

Grants and contributions   16,768   21,083   6,711

Depreciation and amortisation 4.2A 133,317   125,337   74,268

Writedown and impairment of assets 2.2C 38,435   39,990   25,607

Other expenses 2.2D 1,979   3,387   -

Total expenses   2,116,822   2,307,033   2,207,196

             

Net contribution by services   15,634,784   15,018,034   15,279,514

             

Surplus   15,634,784   15,018,034   15,279,514

             

Other comprehensive income            

Items not subject to subsequent reclassification to net cost of services          

Changes in asset revaluation surplus   (10,286)   (1,060)   -

Total other comprehensive income/(loss)   (10,286)   (1,060)   -

Total comprehensive income   15,624,498   15,016,974   15,279,514

             

The above schedule should be read in conjunction with the accompanying notes. Refer to Note 8.1 for explanations of major budget variances.

FINANCIAL STATEMENTS 135 134

Administered Schedule of Assets and Liabilities As at 30 June 2017

Original

2017 2016 Budget

Notes $’000 $’000 $’000

Assets            

Financial assets            

Cash and cash equivalents   55,239   45,609   23,926

Taxation receivables 4.1A 499,503   341,152   258,217

Non-taxation receivables 4.1B 34,501   21,500   17,948

Accrued revenue   23,490   15,725   11,620

Total financial assets   612,733   423,986   311,711

             

Non-financial assets            

Land 4.2A 46,205   47,598   45,556

Buildings 4.2A 989,299   1,103,205   1,360,776

Leasehold improvements 4.2A 151,386   190,590   234,728

Plant and equipment 4.2A 267,369   173,855   160,673

Prepayments   459   1,226   661

Total non-financial assets   1,454,718   1,516,474   1,802,394

             

Assets held for sale 4.2A 9,750   25,135   27,885

Total assets administered on behalf of Government   2,077,201   1,965,595   2,141,990

             

Liabilities            

Payables            

Suppliers 4.3A 244,744   211,321   246,188

Personal benefits 4.3B 23,200   20,973   9,663

Unearned income   30,733   32,959   29,578

Other payables   12,004   4,741   6,320

Total payables   310,681   269,994   291,749

             

Provisions 4.4A 10,132   9,200   21,445

Total liabilities administered    

on behalf of Government   320,813 279,194 313,194

             

Net assets   1,756,388   1,686,401   1,828,796

             

The above schedule should be read in conjunction with the accompanying notes. Refer to Note 8.1 for explanations of major budget variances.

FINANCIAL STATEMENTS 135 134

Administered Reconciliation Schedule For the period ended 30 June 2017

2017 $’000

2016 $’000

Opening assets less liabilities as at 1 July 1,686,401   1,252,428

       

Net (cost of )/contribution by services      

Income 17,751,606   17,325,067

Expenses (2,116,822)   (2,307,033)

Transfers (to)/from the Australian Government      

Appropriation transfers from the OPA      

Annual appropriation for administered expenses 1,779,316   2,226,702

Administered assets and liabilities appropriations 94,506   195,512

Special appropriations (unlimited)      

Payments to entities other than corporate Commonwealth entities 460,435   518,579

Appropriation transfers to the OPA      

Transfers to the OPA (17,888,768)   (17,811,444)

Restructuring -   287,634

Drawings from the OPA on behalf of the ATOa 226,918   212,328

Payments on behalf of the ATOa out of special appropriations (226,918)   (212,328)

Administered revaluations taken to reserves (10,286)   (1,060)

Other movements -   16

Closing assets less liabilities as at 30 June 1,756,388   1,686,401

       

a. Australian Taxation Office (ATO) The above schedule should be read in conjunction with the accompanying notes.

Accounting policy

ADMINISTERED CASH TRANSFERS TO AND FROM THE OFFICIAL PUBLIC ACCOUNT

Revenue collected by the Department for use by Government, rather than the Department, is classified as administered revenue. Collections are transferred to the OPA maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Department on behalf of Government and reported as such in the Administered Reconciliation Schedule and the Administered Cash Flow Statement.

FINANCIAL STATEMENTS 137 136

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FINANCIAL STATEMENTS 137 136

Administered Cash Flow Statement For the period ended 30 June 2017

2017 2016

$’000 $’000

Operating activities        

Cash received        

Customs duty   14,441,317   14,410,901

Immigration fees   2,147,400   1,964,409

Passenger Movement Charge   1,004,494   935,230

Import Processing Charges and licenses   409,324   385,604

Net GST received   70,170   87,129

Bonds received   13,276   33,836

Tourist Refund Scheme drawings   2,582   2,505

Security deposits   1,716   914

Other   3,002   21,704

Total cash received   18,093,281   17,842,232

         

Cash used        

Suppliers   1,636,912   1,839,339

Refunds of duty and other taxes   442,063   448,858

Personal benefits   323,737   427,456

Tourist Refund Scheme   207,496   195,197

Bonds paid   11,812   44,953

Refunds of GST (on imports), WETa and LCTb   22,004   19,636

Grants and contributions paid   16,834   21,017

Security deposits   1,756   803

Other refunds paid   140   5,288

Total cash used   2,662,754   3,002,547

Net cash from operating activities   15,430,527   14,839,685

         

FINANCIAL STATEMENTS 139 138

Administered Cash Flow Statement For the period ended 30 June 2017

Investing activities        

Cash received        

Proceeds from sale of property, plant and equipment   82   725

Total cash received   82   725

         

Cash used        

Purchase of property, plant and equipment   93,431   125,831

Total cash used   93,431   125,831

Net cash (used by) investing activities   (93,349)   (125,106)

Financing activities        

Cash received        

Contributed equity   94,506   161,007

Other   -   2,667

Total cash received   94,506   163,674

Net cash from financing activities   94,506   163,674

Net increase in cash held   15,431,684   14,878,253

         

Cash and cash equivalents at the beginning of the reporting period   45,609   21,259

         

Cash from the OPA        

Appropriations   2,239,751   2,745,281

Refunds of GST (on imports), WETa and LCTb   22,049   19,568

Tourist Refund Scheme   207,496   195,197

Total cash from the OPA   2,469,296   2,960,046

         

Cash to the OPA        

Administered receipts   17,888,768   17,811,444

Return of Tourist Refund Scheme drawings   2,582   2,505

Total cash to the OPA   17,891,350   17,813,949

Cash and cash equivalents at the end of the reporting period   55,239   45,609

a. Wine Equalisation Tax (WET) b. Luxury Car Tax (LCT) The above statement should be read in conjunction with the accompanying notes.

FINANCIAL STATEMENTS 139 138

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 141 140

OVERVIEW

OBJECTIVES OF THE DEPARTMENT

The Department of Immigration and Border Protection (the Department) is an Australian Government controlled not-for-profit entity. The Department’s 2016-17 purpose was to protect Australia’s border and manage the movement of people and goods across it.

The Department provides policy, regulatory and corporate services as well as delivering intelligence and capability for the organisation. • It has immigration responsibilities to manage the entry and stay of temporary and permanent migrants, to promote and confer citizenship

and to meet Australia’s humanitarian and refugee obligations. • It also contributes to the strength of Australia’s national security and economy through effective border security control and the facilitation of seamless

legitimate movement of people and goods across Australia’s border.

The Australian Border Force (ABF) is the frontline operational arm of the Department, with responsibility to enforce customs and immigration law and to deliver specialised border capabilities including within the maritime domain.

The Department is structured to meet three outcomes.

Outcome Activity

Outcome 1: Protect Australia’s sovereignty, security and safety by managing its border, including through managing the stay and departure of all non-citizens.

Program 1.1: Border Enforcement (departmental)

Program 1.2: Border Management (departmental and administered)

Program 1.3: Onshore Compliance and Detention (departmental and administered)

Program 1.4: Illegal Maritime Arrivals Offshore Management (departmental and administered)

Program 1.5: Regional Cooperation (departmental and administered)

Outcome 2: Support a prosperous and inclusive society, and advance Australia’s economic interests through the effective management of the visa and citizenship programs and provision of refugee and humanitarian assistance.

Program 2.1: Citizenship (departmental)

Program 2.2: Migration (departmental)

Program 2.3: Visas (departmental and administered)

Program 2.4: Refugee and Humanitarian Assistance (departmental and administered)

Outcome 3: Advance Australia’s economic interests through the facilitation of the trade of goods to and from Australia and the collection of border revenue.

Program 3.1: Border Revenue Collection (departmental and administered)

Program 3.2: Trade Facilitation and Industry Engagement (departmental)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 141 140

Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Department in its own right. Administered activities involve the management or oversight by the Department, on behalf of Government, of items controlled or incurred by Government.

Details of planned activities for the year can be found in the Immigration and Border Protection Portfolio Budget and Portfolio Additional Estimates Statements for 2016-17 which have been tabled in Parliament.

The continued existence of the Department in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programs.

Basis of preparation of the financial statements These financial statements are general purpose financial statements as required by section 42 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and have been prepared in accordance with: • The Public Governance, Performance and Accountability (Financial Reporting)

Rule 2015 (FRR) for reporting periods ending on or after 1 July 2016; and • Australian Accounting Standards - Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities which have been reported at fair value. Except where stated, no allowance has been made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Comparative information has been adjusted to conform to changes in presentation in these financial statements where required.

The accounting policies described throughout the notes to the financial statements are applied consistently across all activities, whether departmental or administered. Disclosures about administered accounting policies include only items or treatments which are specific to administered activities.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 143 142

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are controlled by Government and managed or overseen by the Department. Administered items (including accounting policies applicable only to administered activities) are distinguished from departmental items using shading.

Taxation The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Receivables and payables are recognised inclusive of GST. All other revenues, expenses, assets and liabilities are recognised net of GST except where the amount of GST incurred is not recoverable from the Australian Taxation Office.

Key accounting judgements and estimates In applying the Department’s accounting policies, management has made a number of accounting judgements and applied estimates and assumptions to future events. Judgements and estimates that are material to the financial statements are found in the following notes: • 2.1 Administered - Income • 3.1 Financial assets • 3.2 Non-financial assets • 6.1 Employee expenses and provisions

Events after the reporting period Departmental On 18 July 2017, the Prime Minister announced that the Government will establish a Home Affairs portfolio of immigration, border protection, domestic security and law enforcement agencies. Specific details as to the implementation of this decision are still being worked through. It is considered possible but not probable that part or all of the Department may be transferred to other entities in a future financial period as result of this administrative restructuring.

There have been no other events after the reporting period which have the potential to significantly affect the ongoing structure and financial activities of the Department.

Administered

The events described above also have the potential to impact the Department’s administered activities. There have been no other events after the reporting period which have the potential to significantly affect the ongoing structure and financial activities that the Department administers on behalf of Government.

FINANCIAL STATEMENTS 143 142

Table of contents

Overview 140

1. Departmental Financial Performance 146

1.1 Expenses 146

1.2 Own-sour ce revenue and gains 148

2. Income and Expenses Adminis tered on Behalf of Government 151

2.1 Administered - Income 151

2.2 Administered - Expenses 154

3. Departmental Financial Position 156

3.1 Financial assets 156

3.2 Non-financial assets 158

3.3 Payables 163

3.4 Provisions 163

4. Assets and Liabilities Administered on Behalf of Government 165

4.1 Administered - Financial assets 165

4.2 Administered - Non-financial assets 167

4.3 Administered - Payables 169

4.4 Administered - Provisions 169

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 145 144

5. Funding 17 0

5.1 Appropriations 170

5

.2 Statutory conditions for payments from the Consolidated Revenue Fund 176

5

.3 Special accounts 177

5.4 Regulatory charging summary 178

5

.5 Net cash appropriation arrangements 179

6. People 180

6.1 Employ ee expenses and provisions 180

6.2 Key management personnel remuneration 183

6.3 Related party relationships 183

7. Managing Uncertainties 184

7.1 Contingent assets and liabilities 184

7.2 Administered - Contingent assets and liabilities 186

7.3 Financial instruments 188

8. Explanation of Budget Variances 189

8.1 Budget v ariances commentary and reporting 189

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 145 144

1. Departmental Financial Performance

1.1 Expenses

2017 2016

$’000 $’000

Note 1.1A: Suppliers      

Goods and services supplied or rendered      

Contractors and consultants 258,302   271,434

Information technology and communications 238,335   238,123

Border control operational 103,433   105,719

Office accommodation and consumables 103,877   94,145

Travel 62,262   84,397

Legal and litigation 47,893   45,392

Fringe Benefits Tax 27,351   28,219

Bank and merchant fees 16,642   14,054

Training 13,970   16,241

Other 55,882   55,141

Total goods and services supplied or rendered 927,947   952,865

       

Other suppliers      

Operating lease rentals 241,125   239,635

Workers compensation expenses 38,779   35,753

Total other suppliers 279,904   275,388

Total suppliers 1,207,851   1,228,253

       

Leasing commitments      

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:      

Within 1 year 289,716   264,187

Between 1 to 5 years 725,304   775,749

More than 5 years 212,664   153,249

Total operating lease commitments 1,227,684   1,193,185

The Department in its capacity as lessee has three types of leasing arrangements: a. Property leases. This includes leases for onshore and offshore office and staff accommodation; b

. Agreements in relation to support costs for desktop infrastructure, midrange infrastructure and software; and c. Other leases . This includes leases for coastal and maritime surveillance related activities.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 147 146

Accounting policy

MINIMUM LEASE PAYMENTS AND LEASE INCENTIVES

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets. Lease incentives, in the form of leasehold improvements or rent free periods, are initially recognised as liabilities and subsequent lease payments are allocated between a reduction of the liability and the expense over the lease term.

2017 2016

$’000 $’000

Note 1.1B: Writedown and impairment of assets      

Receivables and related instruments 13,393   8,774

Land and buildings -   303

Leasehold improvements 4   299

Vessels 83   34

Plant and equipment 573   1,103

Computer software 4,795   5,203

Inventories held for distribution 130   -

Total writedown and impairment of assets 18,978   15,716

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 147 146

1.2 Own-source revenue and gains

2017 2016

$’000 $’000

Note 1.2A: Sale of goods and rendering of services      

Sale of goods 521   561

Rendering of services 115,904   108,914

Total sale of goods and rendering of services 116,425   109,475

Note 1.2B: Recovery of costs      

Legal 14,250   13,878

Merchant fees 16,090   15,856

Comcover insurance recoveries 3,133   2,050

Other 3,867   3,911

Total recovery of costs 37,340   35,695

Note 1.2C: Rental income      

Operating lease property rental 2,619   3,662

Total rental income 2,619   3,662

       

Subleasing rental income commitments      

Commitments for sublease rental income receivables are as follows:      

Within 1 year 374   1,974

Between 1 to 5 years 732   256

More than 5 years 766   459

Total sublease rental income commitments 1,872   2,689

       

The Department in its capacity as lessor has a number of leasing arrangements in relation to property leases for onshore premises.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 149 148

2017 2016

$’000 $’000

Note 1.2D: Other revenue      

Resources received free of charge      

Property related 7,088   6,759

Remuneration of auditors 1,175   1,290

Other resources received free of charge 207   259

Transfers from Department of Foreign Affairs and Trade 2,000   9,500

Other revenue 645   2,441

Total other revenue 11,115   20,249

Note 1.2E: Other gains      

Resources received free of charge -   2,904

Gain on sale of property, plant and equipment 342   50

Foreign exchange gains - non speculative 90   67

Write back of financial instruments 2,137   -

Reduction in makegood provision 1,801   -

Other 753   -

Total other gains 5,123   3,021

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 149 148

Accounting policy

Revenue and gains are recognised to the extent that it is probable that the economic benefit will flow to the Department and the income can be measured reliably, regardless of whether payment is received. Revenue and gains are measured at the fair value of consideration received or receivable.

REVENUE FROM THE SALE OF GOODS AND GAINS FROM THE DISPOSAL OF ASSETS

Income is recognised when the risks and rewards of ownership have been transferred to the buyer (usually on delivery) when the Department retains no managerial involvement or effective control over the asset.

REVENUE FROM RENDERING OF SERVICES

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. Stage of completion is measured by reference to the extent that services are performed to date as a proportion of total services to be performed.

RESOURCES RECEIVED FREE OF CHARGE

Resources received free of charge are recognised as revenue when the fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 151 150

2. I ncome and Expenses Administered on Behalf of Government

2.1 Administered - Income

2017 $’000

2016 $’000

Note 2.1A: Taxation revenue      

Customs duty

Other taxes

14,195,185  

   

14,044,689

 

Visa Application Charges

Passenger Movement Charge

Import Processing Charges

Licenses

Total other taxes

Total taxation revenue

2,045,503  

1,028,442  

394,891  

14,294  

3,483,130  

17,678,315  

1,913,947

913,468

373,824

13,125

3,214,364

17,259,053

       

Note 2.1B: Non-taxation revenue      

Immigration fees

Citizenship

Other

   

51,600  

-  

 

41,248

695

Total immigration fees 51,600   41,943

       

Other revenue      

Recovery of detention costs

Immigration fines

Other penalties, fines and prosecutions

Other

Total other revenue

Total non-taxation revenue

6,007  

792  

3,200  

5,992  

15,991  

67,591  

9,872

1,693

2,923

6,873

21,361

63,304

       

Accounting policy

Administered revenues relate to ordinary activities performed by the Department on behalf of Government. Administered taxation and non-taxation revenues are recognised when Government gains control of, and can reliably measure or estimate, the future economic benefit that will flow to Government from the revenue items administered by the Department. Revenues are measured at the fair value of consideration received or receivable. In line with the relevant applicable legislative provisions, the revenue recognition policy adopted for the major classes of administered revenue is described as follows.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 151 150

CUSTOMS DUTY

Customs duty comprises Commonwealth charges levied on imported goods as a condition of their importation. These charges are determined by the classification of goods within the Customs Tariff Act 1995. Customs duty rates vary and depend on a number of factors, such as the type of goods and country of origin. Customs duty is reported by the Department in the financial statements as a net value. Net duty collections reflect gross duty less refunds paid on duty and drawbacks. Customs duty is levied on the following items: • Excise equivalent goods which includes petroleum

products, tobacco products and alcohol; • Passenger Motor Vehicles; • Textiles, clothing and footwear; and • Other (including machinery, base metals, plastics and rubber, furniture,

live animals, foodstuffs, chemical products, pulp and paper).

VISA APPLICATION CHARGES

Fees are charged for visa applications and migration applications under the Migration Act 1958 (Migration Act) and in accordance with the Migration (Visa Application) Charge Act 1997. As these fee amounts are only refundable in specific, prescribed circumstances, Administered revenues are recognised when collected by the Department. In some instances, payments are made in Australia in advance of visa applications being lodged overseas. These payments are not recognised as revenue until matched with a lodged application.

PASSENGER MOVEMENT CHARGE (PMC)

PMC is levied under the Passenger Movement Charge Act 1978. It is recognised when passengers depart Australia and collected by carriers under formal arrangements with Government. PMC is recognised within the reporting period when a passenger departs Australia, subject to certain legislative exemptions.

IMPORT PROCESSING CHARGE (IPC)

IPC also includes Depot Charges and the Depot Licence Charge. These charges are set by the Import Processing Charges Act 2001. The IPC recovers the costs associated with the Department’s trade and goods activities. IPC is levied on Full Import Declarations relating to goods greater than $1,000 in value. The IPC also includes charges relating to the issue of licences (primarily Depot Licences) which entitle brokers and importers to store goods prior to being exported overseas or brought into home consumption and the relevant duty applied. The Depot Licence Charges are recognised in the reporting period to which the licences relate.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 153 152

IMMIGRATION FINES, OTHER PENALTIES, FINES AND PROSECUTIONS

Other border related collections are fines which are charged for non-compliance with the Migration Act. Administered fines are recognised in the period in which the breach occurs.

Key accounting judgements and estimates

CUSTOMS DUTY

An estimate for Customs duty is recognised for those goods that have entered into home consumption during the reporting period, but for which duty has not yet been paid. Under legislative arrangements, goods can be moved into home consumption with certain importers having seven days from the date of release to make the requisite payment. The value of revenue recognised for this seven day period is estimated based on historical information and receipts subsequent to the reporting date.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 153 152

2.2 Administered - Expenses

2017 2016

$’000 $’000

Note 2.2A: Suppliers      

Services rendered      

Detention 949,982   1,107,330

Client support services 254,616   225,373

Health services 121,864   103,222

Property 103,250   106,057

Travel and transport 113,723   105,070

Contractors and consultants 9,245   6,218

Other 45,025   42,131

Total services rendered 1,597,705   1,695,401

       

Other suppliers      

Operating lease rentals 6,487   20,010

Total other suppliers 6,487   20,010

Total suppliers 1,604,192   1,715,411

       

Leasing commitments      

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:      

Within 1 year 84   16,937

Between 1 to 5 years 321   6,181

More than 5 years -   45

Total operating lease commitments 405   23,163

       

Operating leases included are effectively non-cancellable and include the leasing of facilities to accommodate Illegal Maritime Arrivals and residential leases to house contractors and interpreters.

Note 2.2B: Personal Benefits      

Direct 217,717   276,520

Indirect 94,973   118,831

State payments - refugee minors 9,441   6,474

Total personal benefits 322,131   401,825

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 155 154

ACCOUNTING POLICY

Personal benefits are paid on behalf of Government to provide living cost support to refugees and other recipients awaiting an immigration outcome. Direct personal benefits comprise current transfers provided directly to individuals or households. These benefits are reported separately to indirect personal benefits, which comprise benefits provided to households as social transfers and delivered by a third party (for example, medical and pharmaceutical benefits). Personal benefits are recognised when payments are made, or the Department has a present obligation either to a service provider or directly to recipients. Personal benefits do not require any economic benefit to flow back to Government.

2017 2016

$’000 $’000

Note 2.2C: Writedown and impairment of assets      

Financial instruments      

Taxation receivables 20,220   6,683

Non-taxation receivables 2,388   32,046

Land and buildings 10,915   739

Leasehold improvements 4,581   371

Plant and equipment 331   151

Total writedown and impairment of assets 38,435   39,990

       

Note 2.2D: Other expenses      

Foreign exchange losses - non-speculative 1,353   3,123

Losses from asset sales -   20

Act of grace payments 22   123

Gifting of public property 600   121

Other expenses 4   -

Total other expenses 1,979   3,387

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 155 154

3. Departmental Financial Position

3.1 Financial assets

2017 2016

$’000 $’000

Note 3.1A: Cash and cash equivalents      

Cash at bank 4,163   3,358

Cash on hand or on deposit 51   51

Total cash and cash equivalents 4,214   3,409

Note 3.1B: Trade and other receivables      

Goods and services receivables 45,745   41,542

       

Appropriations receivable      

Existing programs 381,800   445,045

Accrued for additional outputs 71,930   21,764

Total appropriations receivable 453,730   466,809

       

Other receivables      

Statutory receivables 20,704   29,217

Advances -   156

Other 2,209   234

Total other receivables (gross) 22,913   29,607

       

Less impairment allowance (23,099)   (19,533)

       

Total trade and other receivables (net) 499,289   518,425

Reconciliation of the impairment allowance    

Goods and Goods and

services services

2017 2016

$’000 $’000

As at 1 July (19,533) (15,454)

Restructuring - (1,391)

Amounts written-off 4,781 7,297

Amounts waived 16 39

Amounts recovered and reversed (684) (1,250)

Net increase recognised in net surplus/deficit (7,679) (8,774)

Total as at 30 June (23,099) (19,533)

All other receivables were assessed for impairment as at 30 June 2017. No amounts were considered unlikely to be recoverable (2015-16: nil).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 157 156

Accounting policy

Financial assets are measured at amortised cost using the effective interest method less any amounts for impairment allowances. Receivables arising from the sale of goods and rendering of services have 30 day trading terms and are recognised at the nominal amounts due less any impairment allowance for bad and doubtful debts. Collectability of debts is reviewed at the end of the reporting period. Impairment allowances are made when collectability of the debt becomes less probable.

Key accounting judgements and estimates

IMPAIRMENT OF FINANCIAL ASSETS

Goods and services receivables and statutory receivables are assessed for impairment at the end of the reporting period. The likelihood of recovery for all external receivables is assessed regularly and, where recovery becomes unlikely, an impairment allowance is raised. The impairment expense is recognised in the Statement of Comprehensive Income.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 157 156

3.2 Non-financial assets Note 3.2A: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

Land $’000

Buildings $’000

Leasehold

improvements

$’000

Vessels $’000

Plant and equipment $’000

Computer software $’000

Total $’000

As at 1 July 2016              

Gross book value 24,291 47,266 152,184 392,352 309,071 1,095,166 2,020,330

Accumulated depreciation and impairment

- (2,260) (42,386) - (75,029) (618,009) (737,684)

Total as at 1 July 2016

24,291 45,006 109,798 392,352 234,042 477,157 1,282,646

Additions              

Purchased or internally developed

180 516 25,675 2,643 55,700 192,572 277,286

Revaluations and impairments recognised

in other comprehensive income

(4,256) (6,288) - 8,509 - - (2,035)

Reclassifications 13 553 11,813 (5,485) 9,165 (16,059) -

Depreciation and amortisation

- (2,243) (43,163) (27,847) (77,288) (134,717) (285,258)

Disposals - - - - (33) - (33)

Write-offs - - (4) (83) (573) (4,795) (5,455)

Other movements 1 (1) - - (2) (1) (3)

Total as at 30 June 2017

20,229 37,543 104,119 370,089 221,011 514,157 1,267,148

               

Total as at 30 June 2017 represented by

             

Gross book value - fair value (recurring)

             

Assets in use 20,229 37,918 178,828 397,825 325,313 - 960,113

Assets under construction

- - 10,780 - 46,944 - 57,724

Gross book value - at cost

             

Internally developed - in progress

- - - - - 174,970 174,970

Internally developed - in use

- - - - - 873,483 873,483

Purchased - - - - - 70,889 70,889

Accumulated depreciation and amortisation

a

- (375) (85,489) (27,736) (151,246) (605,185) (870,031)

Total as at 30 June 2017

20,229 37,543 104,119 370,089 221,011 514,157 1,267,148

a. The accumulated depreciation balance as at 30 June 2017 includes the impact of the revaluation process. No material property, plant and equipment or intangibles are expected to be sold or disposed of within the next 12 months. No indicators of impairment were found for property, plant and equipment at 30 June 2017.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 159 158

Revaluation of non-financial assets All revaluations were conducted in accordance with the revaluation policy stated below. The Department engaged the services of Australian Valuation Solutions (AVS) to conduct the revaluations as at 30 June 2017.

Contractual commitments for the acquisition of property, plant and equipment and intangible assets As at 30 June 2017, contractual commitments for the acquisition of property, plant and equipment and intangible assets amounted to $22.103 million (2015-16: $33.150 million).

Accounting policy

Non-financial assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to restructuring.

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. Where an obligation exists under a lease arrangement to restore a property to its original condition, an initial estimate of these costs is included in the value of the Department’s leasehold improvements and a corresponding provision for the restoration obligations is recognised.

ASSET RECOGNITION THRESHOLD

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The Department’s intangible assets primarily comprise purchased and internally developed computer software for internal use. The recognition thresholds for internally developed software (IDS) are $250,000 for new IDS assets, $100,000 for enhancements to existing IDS assets, and $100,000 for purchased software. Purchases below these thresholds are expensed in the year of acquisition.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 159 158

REVALUATIONS

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The Department has adopted a strategic three year revaluation cycle based on an assessment as to the volatility of movements in market conditions and other inputs affecting the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is then restated to the revalued amount.

DEPRECIATION AND AMORTISATION

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using the straight-line method of depreciation. All new assets are generally assigned useful lives as identified below. In some limited cases, specific management advice may result in a useful life for a particular asset being assigned outside these ranges. • Buildings on freehold land - up to 40 years • Leasehold improvements - lesser of the useful life of the asset or the lease term • Vessels - 3 to 20 years • Plant and equipment - 3 to 10 years

Intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. Computer software is amortised on a straight-line basis over its anticipated useful life. The useful life of the Department’s software is 3 to 7 years. Useful lives of intangible assets are determined by the business unit responsible for the asset upon capitalisation based on its expected usage.

The policies applied for the selection of non-financial asset useful lives is consistent with prior reporting periods. The remaining useful lives and residual values for non-financial assets are reviewed at each reporting date and necessary adjustments are recognised in the current and future reporting periods.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 161 160

COMPONENTISATION OF NON-FINANCIAL ASSETS

Major assets, such as vessels and internally developed software, are componentised if it is likely that the components will have useful lives that differ significantly from the other parts of the asset. The useful lives of components are determined with reference to the individual component or the primary asset, whichever is shorter.

IMPAIRMENT

All non-financial assets are assessed for impairment at the end of the reporting period where indicators of impairment exist. An impairment adjustment is made if the asset’s estimated recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

ASSETS UNDER CONSTRUCTION

Assets under construction (AUC) are initially recorded at acquisition cost. They include expenditure to date on various capital projects carried as AUC. AUC projects are reviewed annually for indicators of impairment and all AUC older than 12 months at reporting date is externally revalued to fair value. Prior to rollout into service, the accumulated AUC balance is reviewed to ensure accurate capitalisation of built and purchased assets.

DERECOGNITION

Non-financial assets are derecognised upon disposal or when no further future economic benefit is expected from its use or disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised as a gain or loss in the period of derecognition.

Key accounting judgements and estimates

FAIR VALUE MEASUREMENT

The Department engages the services of an independent valuer to conduct asset materiality reviews of all non-financial assets held at fair value as at reporting date and relies upon those outcomes to establish carrying amounts. An annual assessment is undertaken to determine whether the carrying amount of assets differs materially from the fair value. Comprehensive valuations are undertaken at least once every three years. The fair value of property, plant and equipment is determined using either the Market Approach or the Cost Approach.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 161 160

MARKET APPROACH

The Market Approach seeks to estimate the current value of an asset in its highest and best use with reference to recent market evidence including transactions of comparable assets. Certain items of land, buildings, leasehold improvements, vessels, plant and equipment are valued using the Market Approach. Inputs utilised under the Market Approach comprise market transactions of comparable assets adjusted to reflect differences in price sensitive characteristics including: • Recent market sales of comparable land and buildings adjusted for size and location; • Sales of comparable commercial offshore supply vessels; and • Current prices for comparable or substitute items of leasehold improvements, plant

and equipment available within local second-hand markets or adjusted for location.

COST APPROACH

The Cost Approach seeks to estimate the amount required to replace the service capacity of an asset in its highest and best use. In cases where sufficient observable market evidence is unavailable, the Cost Approach is applied and determined as either the replacement cost of new assets (RCN) or the depreciated replacement cost (DRC).

AUC is valued as RCN determined as the amount a market participant would pay to acquire or construct a new substitute asset of comparable utility and relevant to the asset’s location. Inputs including current local market prices for asset components such as materials and labour costs are utilised in determining RCN.

Certain items of land, buildings, leasehold improvements, vessels, plant and equipment are valued using DRC. Under DRC the replacement costs of new assets is adjusted for physical depreciation and obsolescence such as physical deterioration, functional or technical obsolescence and conditions of the economic environment specific to the asset. This is determined based on the estimated physical, economic and external obsolescence factors relevant to the asset under consideration. For all leasehold improvements, the consumed economic benefit/asset obsolescence deduction is determined based on the term of the associated lease. Physical depreciation and obsolescence for buildings, vessels, plant and equipment is determined based on the asset’s estimated useful life.

2017 $’000

2016 $’000

Note 3.2B: Other non-financial assets      

Prepayments

Contract incentive

Total other non-financial assets

52,333

8,421

60,754

 

 

 

43,374

6,737

50,111

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 163 162

3.3 Payables

2017 2016

$’000 $’000

Note 3.3A: Suppliers      

Trade creditors and accruals 214,804   248,142

Operating lease rentals 15,523   16,080

Total suppliers 230,327   264,222

Note 3.3B: Other payables      

Wages and salaries 7,937   4,782

Superannuation 1,374   751

Unearned income 3,723   1,631

Separations and redundancies 8,330   7,088

Lease incentives 4,473   2,614

Other 324   432

Total other payables 26,161   17,298

Accounting policy

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received irrespective of whether an invoice has been received.

3.4 Provisions Note 3.4A: Other provisions      

Restoration Onerous

obligationsa contractsb Total

$’000 $’000 $’000

As at 1 July 2016 38,210 - 38,210

Additional provisions made - 122 122

Amounts reversed (1,801) - (1,801)

Amounts used (798) - (798)

Unwinding of discount or change in discount rate (199) - (199)

Total as at 30 June 2017 35,412 122 35,534

a. The Department has 109 (2015- 16: 110) agreements for leased premises both in Australia and overseas with obligations that require the premises to be restored to their original condition at the conclusion of the lease. The Department has made a provision to reflect the present value of these obligations. b. The Department has 1 (2015- 16: Nil) agreement for leased premises which are surplus to its requirements. The Department

has made a provision to reflect the present value of unavoidable future costs that exceed any expected economic benefit.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 163 162

Accounting policy

Provisions are recognised when the Department has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a rate that reflects the risks specific to the lability. When discounting is used, the increase in the provision due to the unwinding of the discount or change in the discount rates is recognised in the Statement of Comprehensive Income.

PROVISION FOR RESTORATION OBLIGATIONS

Provisions for restoration obligations are recognised where the Department is required to restore premises upon termination of a lease. The original estimates for future costs associated with restoration obligations are determined by independent valuation and discounted to their present value. The original provisions are adjusted for changes in expected future cost and the discount rate.

PROVISION FOR ONEROUS CONTRACTS

Provisions for onerous contracts are recognised where the Department expects the unavoidable costs of meeting the obligations under the contract exceed the economic benefit expected to be received under it. The provision is measured as the least net cost of exiting the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. Future costs are discounted to their present value and the original provision is adjusted for changes in expected future costs and the discount rate.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 165 164

4. Assets and Liabilities Administered on Behalf of Government

4.1 Administered - Financial assets

2017 $’000

2016 $’000

Note 4.1A: Taxation receivables      

Customs duty

Visa Application Charges

Passenger Movement Charge

Import Processing Charges and Licences

Total taxation receivables (gross)

386,150

3,356

133,439

1,497

524,442

 

 

 

 

 

238,101

4,210

108,124

1,729

352,164

       

Less impairment allowance (24,939)   (11,012)

       

Total taxation receivables (net) 499,503   341,152

       

Note 4.1B: Non-taxation receivables      

Personal benefits

Penalties, fines and prosecutions

Statutory receivables

Other

Total non-taxation receivables (gross)

23,359

5,560

14,734

15,042

58,695

 

 

 

 

 

25,417

30,343

15,832

5,070

76,662

       

Less impairment allowance (24,194)   (55,162)

       

Total non-taxation receivables (net) 34,501   21,500

       

Reconciliation of the impairment allowance

Taxation Non-taxation Taxation Non-taxation

receivables receivables receivables receivables

2017 2017 2016 2016

$’000 $’000 $’000 $’000

As at 1 July (11,012) (55,162)   - (5,249)

Restructuring - -   (7,294) (25,577)

Amounts written-off 6,293 33,356   2,965 7,710

Increase recognised in net surplus (20,220) (2,388)   (6,683) (32,046)

Total as at 30 June (24,939) (24,194)   (11,012) (55,162)

           

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 165 164

Accounting policy

Taxation revenue related receivables are statutory in nature with amounts determined under legislation or by court order. Administered taxation receivables are held at statutory value less any allowance for impairment.

Administered non-taxation receivables are held at amortised cost less any allowance for impairment.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 167 166

4.2 Administered - Non-financial assets Note 4.2A: Reconciliation of the opening and closing balances of property, plant and equipment

Land

a

$’000

Buildings

a

$’000

Leasehold improvements

a

$’000

Plant and equipment $’000

Total $’000

As at 1 July 2016          

Gross book value 63,748 1,194,483 221,089 188,323 1,667,643

Accumulated depreciation and impairment

-

(82,293) (30,499) (14,468) (127,260)

Total as at 1 July 2016

63,748

1,112,190 190,590 173,855 1,540,383

           

Additions          

Purchased - 32,238 8,341 42,477 83,056

Revaluations and impairments recognised

in other comprehensive income

(7,793)

(2,493) - - (10,286)

Reclassifications - (55,530) (14,882) 70,412 -

Depreciation - (86,191) (28,082) (19,044) (133,317)

Write-offs - (10,915) (4,581) (331) (15,827)

Total as at 30 June 2017

55,955

989,299 151,386 267,369 1,464,009

           

Total as at 30 June 2017 represented by

 

       

Gross book value - Fair value (recurring)

 

       

Assets in use 46,205 1,086,135 194,555 306,152 1,633,047

Assets held for sale 9,750 - - - 9,750

Assets under construction

-

70,779 - 1,884 72,663

Accumulated depreciation and impairment

b

- (167,615) (43,169) (40,667) (251,451)

Total as at 30 June 2017

c

55,955 989,299 151,386 267,369 1,464,009

           

a. Land, buildings and leasehold improvements amounts includes assets held for sale. These are assets that are surplus to the current requirements and are expected

to be sold to external parties in the next financial year. Total value is $9.75 million (2015-16: $25.135 million).

b. The accumulated depreciation balance as at 30 June 2017 includes the impact of the revaluation process. c. On 16 May 2017, the Minister for Immigration and Border Protection announced that the Government was working towards a 31 October 2017 closure date for the

Regional Processing Centre on Manus Island. As at 30 June 2017, the assets relating to Manus Island (net book value of $383.305 million) were recognised in these statements.

No indicators of impairment were found for property, plant and equipment at 30 June 2017. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 167 166

Revaluation of administered non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated in Note.3.2. The Department engaged the services of Australian Valuation Solutions (AVS) to conduct the revaluation as at 30 June 2017.

Contractual commitments for the acquisition of administered property, plant and equipment

As at 30 June 2017, contractual commitments for the acquisition of administered property, plant and equipment amounted to $22.525 million (2015-16: $71.482 million).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 169 168

4.3 Administered - Payables

2017 $’000

2016 $’000

Note 4.3A: Suppliers

Trade creditors and accruals

 

244,744

 

 

 

211,321

Total supplier payables 244,744   211,321

       

Note 4.3B: Personal benefits      

Direct 4,455   6,056

Indirect 16,770   13,142

State payments - refugee minors

Total personal benefits

1,975

23,200

 

 

1,775

20,973

4.4 Administered - Provisions Note 4.4A: Provisions

Bonds $’000

Security deposits $’000

Total $’000

As at 1 July 2016 7,676 1,524 9,200

Additional provisions made 13,799 2,423 16,222

Amounts refunded (11,886) (2,463) (14,349)

Amounts forfeited (941) - (941)

Total as at 30 June 2017 8,648 1,484 10,132

       

Accounting policy

PROVISION FOR BONDS AND SECURITY DEPOSITS

The Department collects and repays bonds on behalf of Government for the purposes of compliance with the Migration Act 1958 and associated regulations. The Department collects three types of bonds, namely compliance bonds, visitor visa bonds and professional development visa securities.

The Department collects and repays security deposits on behalf of Government for the purposes of compliance with the Customs Act 1901. The Department collects four types of security namely Security-Dumping and Countervailing, Security-IPR Copyright & Trademark, Security-Temp Imports and Security-Warehouse & General.

Receipts from these bonds and security deposits are treated as liabilities and provided for until such time as they are either forfeited or refunded to customers. Revenue is only recognised at the point of forfeiture.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 169 168

5. Funding

5.1 Appropriations

2017 2016

$’000 $’000

Note 5.1A: Annual and unspent appropriations      

Departmental      

Ordinary annual services      

Annual appropriationsa      

Ordinary annual services 2,412,468   2,517,660

Departmental capital budgetb 120,519   116,639

PGPA Act Section 74 receipts 155,054   211,194

Total annual appropriation 2,688,041   2,845,493

Appropriation applied (current and prior years)c (2,787,424)   (2,883,978)

Variancee (99,383)   (38,485)

Opening unspent appropriation balance 378,325   308,078

Adjustments to appropriationf -   108,732

Closing unspent appropriation balance (recoverable GST exclusive) 278,942   378,325

       

Balance comprises appropriations as follows:      

Appropriation Act (No. 1) 2012-2013g 522   522

Appropriation (Implementation of the Report of the Expert Panel Report on Asylum Seekers) Act (No. 2) 2012-2013h 600   600

Appropriation Act (No. 1) 2013-2014i,w 257   257

Appropriation Act (No. 1) 2014-2015j 10,538   10,538

Appropriation Act (No. 3) 2014-2015k 3,275   3,275

Appropriation Act (No. 1) 2015-2016 - Cash at Bank -   3,409

Appropriation Act (No. 1) 2015-2016m 1,589   295,739

Appropriation Act (No. 3) 2015-2016n 36,765   63,985

Appropriation Act (No. 1) 2016-2017 - Cash at Bank 4,214   -

Appropriation Act (No. 1) 2016-2017o 164,965   -

Appropriation Act (No. 3) 2016-2017 56,217   -

Total unspent annual appropriations (recoverable GST exclusive) 278,942   378,325

       

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 171 170

2017 2016

$’000 $’000

Other services      

Annual appropriationsa      

Equity injections 197,179   226,857

Total annual appropriation 197,179   226,857

Appropriation applied (current and prior years) (144,214)   (155,235)

Variancee 52,965   71,622

Opening unspent appropriation balance 144,871   41,346

Adjustments to appropriationf -   31,903

Closing unspent appropriation balance (recoverable GST exclusive) 197,836   144,871

       

Balance comprises appropriations as follows:      

Appropriation Act (No. 2) 2013-2014p,w 3,315   3,315

Appropriation Act (No. 4) 2013-2014q,w 550   550

Appropriation Act (No. 2) 2014-2015r 5,662   14,287

Appropriation Act (No.4) 2014-2015s 6,154   21,972

Appropriation Act (No. 2) 2015-2016t 14,639   104,747

Supply Act (No. 2) 2016-2017 36,268   -

Appropriation Act (No. 2) 2016-2017v 131,248   -

Total unspent annual appropriations (recoverable GST exclusive) 197,836   144,871

       

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 171 170

2017 2016

$’000 $’000

Administered      

Ordinary annual services      

Annual appropriationsa      

Administered items 2,250,836   2,396,702

Administered capital budgetb 18,856   26,098

Total annual appropriation 2,269,692   2,422,800

Appropriation applied (current and prior years)d (1,932,792)   (2,207,323)

Variancee 336,900   215,477

Opening unspent appropriation balance 1,001,153   785,528

Adjustments to appropriationf -   148

Closing unspent appropriation balance (recoverable GST exclusive) 1,338,053   1,001,153

       

Balance comprises appropriations as follows:      

Appropriation Act (No. 1) 2012-2013g 2,700   2,700

Appropriation Act (No. 1) 2013-2014i,w 10,036   10,036

Appropriation Act (No. 3) 2013-2014w 87   87

Appropriation Act (No. 1) 2014-2015j 341,999   347,217

Appropriation Act (No. 3) 2014-2015k 24,226   24,226

Appropriation Act (No. 5) 2014-2015l 172,582   172,582

Appropriation Act (No. 1) 2015-2016 - Cash at Bank -   9,461

Appropriation Act (No. 1) 2015-2016m 205,431   342,750

Appropriation Act (No. 3) 2015-2016n 50,656   92,094

Supply Act (No.1) 2016-2017 3,153   -

Appropriation Act (No. 1) 2016-2017 - Cash at Bank 8,831   -

Appropriation Act (No. 1) 2016-2017o 374,840   -

Appropriation Act (No.3) 2016-2017 143,512   -

Total unspent annual appropriations (recoverable GST exclusive) 1,338,053   1,001,153

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 173 172

2017 2016

$’000 $’000

       

Other services      

Annual appropriationsa      

Administered assets and liabilities 124,374   205,690

Total annual appropriation 124,374   205,690

Appropriation applied (current and prior years) (70,373)   (136,402)

Variancee 54,001   69,288

Opening unspent appropriation balance 354,664   285,376

Closing unspent appropriation balance (recoverable GST exclusive) 408,665   354,664

       

Balance comprises appropriations as follows:      

Appropriation Act (No. 4) 2013-2014q,w 62,000   126,311

Appropriation Act (No. 2) 2014-2015r 131,438   137,500

Appropriation Act (No. 2) 2015-2016t 28,853   28,853

Appropriation Act (No. 4) 2015-2016u 62,000   62,000

Supply Act (No.2) 2016-2017 28,012   -

Appropriation Act (No. 2) 2016-2017 96,062   -

Appropriation Act (No. 4) 2016-2017 300   -

Total unspent annual appropriations (recoverable GST exclusive) 408,665   354,664

       

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 173 172

a. Appropriations as per Appropriation Acts (1 through 6) 2016-17. Departmental appropriations do not lapse at financial year end, ho wever the responsible Minister may decide that part or all of a departmental or administered appropriation is not required and

request that the Finance Minister reduce that appropriation. The reduction in the appropriation is reflected by the Finance Minister’s determination. Such determinations for the 2016-17 year are reflected in the relevant line. b. Capital Budgets are appropriated through Appropriation Act (No.1). They form part of ordinary annual services, and ar

e not separately identified in the Appropriation Acts. c. Ordinary annual services applied: $2,670 million (2015-16: $2,765 million); Departmen

tal capital budget applied: $117 million (2015-16: $119 million). d. Administered ordinary annual services applied: $1,909 million (2015-16: $2,189 million); Administered capital budget applied: $24 million (2015-16: $18 million). e. The Departmental ‘Other s ervices’ equity variance relates to drawdowns from prior year appropriations. The Administered

‘Other services’ ‘Administered assets and liabilities’ variance relates to drawdowns from prior year appropriations. The Administered ‘Ordinary annual services’ variance relates to not yet paid liabilities under outcomes. f. Prior period adjustments r eflect transfer of receivable from the former Australian Customs and Border Protection Service on integration.

The balances within Note 5.1 include amounts that have been quarantined by the Department of Finance and as such the Department is unable to utilise the amounts detailed below for Departmental purposes. g. Departmental: $0 .522 million (2015-16: $0.522 million); Administered: $2.700 million (2015-16: $2.700 million). h. Departmental: $0 .600 million (2015-16: $0.600 million). i. Departmental: $0 .257 million (2015-16: $0.257 million). j. Departmental: $10 .538 million (2015-16: $10.538 million); Administered: $341.996 million (2015-16: $341.996 million). k. Departmental: $3 .275 million (2015-16: $3.275 million); Administered: $24.226 million (2015-16: $24.226 million). l. Administered: $155.143 million (2015-16: $155.43 million). m. Departmental: $1.589 million (2015- 16: $0.811 million); Administered: $205.431 million (2015-16: $197.865 million). n. Departmental: $36 .765 million (2015-16: nil); Administered: $50.656 million (2015-16: $12.251 million). o. Departmental: $2. 700 million (2015-16: nil); Administered: $144.384 million (2015-16: nil). p. Departmental: $3 .315 million (2015-16: $3.315 million). q. Departmental: $0 .550 million (2015-16: $0.550 million); Administered: $62.000 million (2015-16: $62.000 million). r. Departmental: $5 .662 million (2015-16: $5.662 million); Administered: $96.500 million (2015-16: $96.500 million). s. Departmental: $6 .154 million (2015-16: $6.154 million). t. Departmental: $1 4.639 million (2015-16: $14.639 million); Administered: $7.112 million (2015-16: $7.112 million). u. Administered: $58.228 million (2015-16: $58.228 million). v

. Departmental: $13 .319 million (2015-16: nil). w. These Appropriation Acts lapsed on 1 July 2017.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 175 174

Accounting policy

REVENUE FROM GOVERNMENT

Departmental amounts appropriated for the financial year (adjusted to reflect the department’s funding model agreements, formal additions and reductions) are recognised as Revenue from Government when the Department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. The Department has two funding models which inform appropriations from Government. As part of the annual funding model reconciliation process, any movements in funding earned are recognised as adjustments to Revenue from Government in the current financial year. The funding models are: • The broader immigration and citizenship services funding model. This

funding model has fixed and variable components, with variable funding adjusted to reflect actual movements in workload drivers including, for example, visa finalisations and citizenship decisions; and • The Passenger Workload Growth Agreement (PWGA) model which provides a mechanism for the Department to adjust its funding to cater for appropriate impacts in the passenger processing environment.

EQUITY INJECTIONS

Amounts appropriated which are designated as ‘equity injections’ for a financial year (less any formal reductions) and departmental capital budgets, are recognised directly in contributed equity in that year.

Note 5.1B: Special appropriations (recoverable GST exclusive)

Appropriation applied

2017 2016

$’000 $’000

Authority Type Purpose      

Public Governance, Unlimited Repayments required 460,435   517,776

Performance and Accountability account or permitted by law Act 2013, Section 77

           

Taxation Administration Act Refund Refund of receipts to 202,287   192,695

1953, Section 16 individuals under the

tourist refund scheme

Total     662,722   710,471

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 175 174

Note 5.1C: Disclosure by agent in relation to annual and special appropriations (recoverable GST exclusive)

DSSa ATO b DSSa ATO b

2017 2017 2016 2016

$’000 $’000 $’000 $’000

         

Total receipts 1,862 202,287 2,130 192,695

Total payments (1,862) (202,287) (2,130) (192,695)

         

a. The Department made w age supplementation payments from the Social and Community Services Pay Equity Special Account administered by the Department of Social Services (DSS) to eligible social and community services workers. b. The Department administ ers the Tourist Refund Scheme (TRS) on behalf of the Australian Taxation Office (ATO). The TRS allows for departing Australian international passengers and overseas tourists to claim back the

Wine Equalisation Tax and/or Goods and Services Tax on goods purchased in Australia and taken overseas with them.

5.2 Statutory conditions for payments from the Consolidated Revenue Fund The Department operates under a self-assessment regime for its Customs Duty collection and refunds, which facilitates trade and ensures collection of border related revenue in a cost effective manner. This process involves importers/brokers undertaking self-assessments to determine duty payable and refunds of that duty. This self-assessment regime is supported by a compliance function which targets high risk transactions with a view to identifying intentional misstatement and fraud.

Section 83 of the Constitution of Australia provides that no money shall be drawn from the Consolidated Revenue Fund except under appropriation made by law. During 2016-17, the Department improved its compliance governance and management oversight arrangements relevant to the collection of Customs Duty to improve the oversight of these high risk transactions and subsequently provide stakeholders with the assurance that the requirements of Section 83 are being complied with. The analysis for 2016-17 identified 367 (2015-16: 248) breaches, totalling approximately $431,205 (2015-16: $1,864,813) in relation to payments made under Section 77 of the PGPA Act. At 30 June 2017 $285,088 (2015-16: $1,856,884) of these amounts had been recovered or offset. The Department expects to recover or offset the remaining balance. Legislative amendments affecting the payment of refunds are waiting to be tabled in Parliament. These amendments would ensure payments due to wrongful self-assessment would not be subject to Section 83 breaches in the future.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 177 176

5.3 Special accounts Note 5.3A: Special accounts (recoverable GST exclusive)

Australian Population Multicultural and Immigration Research Program (APMIRP)

Special Account (administered)    

2017 $’000

2016 $’000

Balance brought forward from previous period - 54

Total available for payments - 54

     

Decreases    

Administered decreases - (54)

Total decreases - (54)

Total balance carried to the next period - -

The APMIRP special account ceased during the reporting period with the sunset clause taking effect on 1 October 2016.

Under Financial Management and Accountability Determination 2006/38:

1. The purposes of the A ustralian Population, Multicultural and Immigration Research Program special account in relation to which amounts may be debited from the special account are to: a. conduct res earch into migration, migration settlement, multicultural affairs and population trends in accordance with approval from the responsible

Minister in consultation with relevant state and territory ministers b. carry out activities that are incidental to the purpose mentioned in paragraph (a) c. repay to an original payer amounts credited to the special account and residual after

an

y necessary payments made for a purpose mentioned in paragraph (a) or ( b) d. reduce the balance of the special account (and therefore the available appr

opriation for the account) without making a real or notional payment e. repay amounts where an Act or other law requires or permits the r

epayment of an amount received.

2. To avoid doubt, incidental activities include: a . the administra tion of the special account

b. dealing with direct and indir ect costs.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 177 176

5.4 Regulatory charging summary Regulatory charging activities are those activities where the Government has agreed that a regulatory function is to be charged for on a full or partial cost recovery basis. This note provides industry, the Parliament and the public with assurance that these activities are being managed in a way that aligns expenses and revenues over time.

2017 2016

$’000 $’000

Amounts applied    

Departmental    

Annual appropriationsa 416,746 421,727

Total amounts applied 416,746 421,727

     

Expenses    

Departmental 464,922 466,455

Total expenses 464,922 466,455

     

Revenue    

Departmentalb 828 816

Administered 451,142 418,662

Total revenue 451,970 419,478

     

Amounts written off    

Administered 7 7

Total amounts written off 7 7

a. Annual appropria tions include the cash component of expenses plus any capital amounts for the given year. This will exclude the non-cash expenses of depreciation and amortisation and movement in provisions. b. Charges collected under the Import Processing Charges (IPC) as section 74 revenue.

Cost recovered activities The Department implements cost recovery arrangements for processing applications to acquire, renounce or resume Australian citizenship. Activities that are cost recovered include the assessment of applications and management of citizenship test resources, the provision of call centre and online support to applicants, the production and distribution of certificates, and the facilitation of some citizenship ceremonies. Costs are recovered through fees charged on applications, which are administered in nature. Fees differ by the type of application and eligibility of the applicant, and are set to recover the cost of processing each application. Charges recovered in relation to citizenship totalled $51.600 million (2015-16: $41.248 million). Expenses totalled $63.045 million (2015-16: $56.720 million).

IPC and Licensing charges recover the costs of the Department’s cargo and trade related activities. This includes fees for warehouse, depot and broker licences, warehouse declarations fees, location, time and travel fees along with the processing charges associated with administering the importation of goods into Australia. The majority of charges collected are administered in nature, however Government agreed that some charges be collected as departmental revenue. Charges recovered in relation to IPC and Licensing totalled $399.542 million (2015-16: $378.230 million). Expenses totalled $401.877 million (2015-16: $409.735 million).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 179 178

5.5 Net cash appropriation arrangements

2017 2016

$’000 $’000

Total comprehensive income/(loss) as per the Statement of Comprehensive Income

(278,670)   (302,809)

       

Depreciation/amortisation expenses previously funded through revenue appropriation

285,258   277,511

       

Total comprehensive income/(loss) less depreciation/ amortisation expenses previously funded through revenue appropriations 6,588   (25,298)

       

Changes in asset revaluation surplus 2,035   3,569

       

Surplus/(deficit) attributable to the Australian Government less depreciation/ amortisation expenses previously funded through revenue appropriation 8,623   (21,729)

From 2010-11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required. The Department is fully funded for capital expenditure through the Departmental Capital Budget (DCB) arrangements, except for major asset purchases/ replacements funded as equity injections through Appropriation Acts (No. 2, 4 and 6).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 179 178

6. People

6.1 Employee expenses and provisions

2017 2016

$’000 $’000

Note 6.1A: Employee benefits

Wages and salaries 893,539 910,124

Superannuation

Defined contribution plans 93,195 84,664

Defined benefit plans 110,739 123,861

Leave and other entitlements 213,421 248,841

Separation and redundancies 21,979 9,717

Other employee expenses 76,501 73,793

Total employee benefits 1,409,374 1,451,000

Note 6.1B: Employee provisions      

Leave 395,062   415,305

Other 2,191   2,421

Total employee provisions 397,253   417,726

The 2016-17 average staffing level for the Department was 13,972 (2015-16: 13,832).

Accounting policy

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits expected within 12 months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the amounts expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as the net total of the present value of the obligation at the end of the reporting period less the fair value at the end of the reporting period of plan assets (if any) from which the obligations will be settled directly.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 181 180

LEAVE

The liability for employee benefits includes provision for annual leave and long service leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will apply at the time the leave is expected to be taken, including the Department’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. Future salary rates are estimated for financial reporting purposes based on historical analysis, policy settings and, for long service leave, actuarial advice is obtained. On 5 October 2016, the Fair Work Commission issued an order under section 424(1) of the Fair Work Act 2009 terminating Protected Industrial Action for the proposed Department of Immigration and Border Protection Enterprise Agreement. The Agreement is subject to arbitration by the Full Bench of the Fair Work Commission. To the extent that the arbitration results in a change to future salary rates, the financial impact will be recognised prospectively in accordance with applicable accounting standards.

LOCALLY ENGAGED EMPLOYEES

Locally engaged employees (LEE) are covered by individual employment contracts which are negotiated between the employee and DFAT on behalf of the Department to ensure compliance with local labour laws and regulations. The individual contracts are supported and expanded upon by the Department’s LEE Conditions of Service Handbook which is specific to each post. Where there is conflict between the two documents the individual contract takes precedence.

Provisions for employee entitlements including unfunded liabilities are recognised in accordance with the conditions of service at each post. LEE conditions at some posts include separation payments, for any cessation of employment, based on years of service. The provisions recognised for these entitlements do not represent termination payments.

SEPARATION AND REDUNDANCY

The Department recognises a provision for termination payments when it has developed a detailed formal plan for the terminations and has informed employees affected that it will carry out the terminations.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 181 180

SUPERANNUATION

The Department’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap), or non-government superannuation funds where employees have exercised choice. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and all non-government funds are defined contribution schemes.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s financial statements administered schedules and notes. The Department makes employer contributions to the employee’s defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to Government. The Department accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at reporting date represents outstanding contributions.

KEY MANAGEMENT PERSONNEL REMUNERATION

Key management personnel are identified as those people having the authority and responsibility for planning, directing and controlling the activities of the Department, either directly or indirectly. Remuneration of key management personnel includes employee benefits paid to the Secretary, ABF Commissioner, Deputy Secretaries and Deputy Commissioners including those who have acted in any of the aforementioned roles for a continuous period of three months or more, or departed prior to reporting date.

Key accounting judgements and estimates

The liability for long service leave has been determined by reference to the work of an actuary. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. The estimate of future costs requires management and independent actuarial assessment of assumed salary growth rates, future on-cost rates and the experience of employee departures. The future costs are then discounted to present value using market yields on government bonds in accordance with AASB 119 Employee Benefits.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 183 182

6.2 Key management personnel remuneration 2017 2016

($) ($)

Note 6.2A: Key management personnel remuneration      

Short-term employee benefits 3,262,267   3,805,521

Post-employment benefits 532,910   689,083

Other long-term employee benefits 312,811   537,697

Termination benefits -   287,080

Total key management personnel remuneration expenses 4,107,988   5,319,381

The number of key management personnel directly remunerated by the Department that are included in the above table is 11 (2015-16: 11). As this number includes managers who were only employed by the Department for part of the year, on the basis of full time equivalency, the number of key management personnel directly remunerated during 2016-17 was 8.00 (2015-16: 10.39).

6.3 Related party relationships The Department is an Australian Government controlled entity. The Department’s related parties are key management personnel including the Portfolio Minister and other Australian Government entities. The remuneration of key management personnel within Note 6.2 excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister’s remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the Department.

Transactions with related parties Given the breadth of Government activities, related parties may transact with the Government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of duties, taxes or other fees. These transactions have not been separately disclosed in this note.

Significant transactions with related parties can include: • The payment of grants or loans; • Purchase of goods and services; • Asset purchases, sales transfers or leases; • Debts forgiven; and • Guarantees.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period, it has been determined that there are no related party transactions to be separately disclosed.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 183 182

7. Managing Uncertainties 7.1 Contingent assets and liabilities

Claims for Claims for

damages damages

Indemnities

or costs Other Total Indemnities or costs Other Total

2017 2017 2017 2017 2016 2016 2016 2016

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Contingent assets                

Balance from previous period

- - - - - - - -

New contingent assets recognised

- - 1,893 1,893 - - - -

Assets realised - - - - - - - -

Rights expired - - - - - - - -

Total contingent assets

- - 1,893 1,893 - - - -

                 

Contingent liabilities                

Balance from previous period

- - - - 292 287 - 579

New contingent liabilities recognised

- - - - - - - -

Liabilities realised - - - - - (100) - (100)

Obligations expired - - - - (292) (187) - (479)

Total contingent liabilities

- - - - - - - -

Net contingent assets/(liabilities)

- - 1,893 1,893 - - - -

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 185 184

Unquantifiable contingencies As at reporting date the Department had a number of legal claims lodged against it for damages and costs. The Department is responding to these claims in accordance with its obligations under the Legal Services Directions 2017. It is not possible to estimate the amount of any eventual payments in relation to these activities.

Accounting policy

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the Notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable, but not virtually certain and contingent liabilities are disclosed when the probability of settlement is greater than remote.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 185 184

7.2 Administered - Contingent assets and liabilities Claims for damages Claims for damages or costs or costs

2017 2016

$’000 $’000

Contingent liabilities    

Balance from previous period 700 1,860

New contingent liabilities recognised - 700

Liabilities recognised (700) (636)

Obligations expired - (1,224)

Total contingent liabilities - 700

     

As at 30 June 2017 the Department had no quantifiable contingent assets or liabilities.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 187 186

Unquantifiable contingencies

As at reporting date the Department had a number of claims and legal actions lodged against it for damages and costs. The Department is responding to these claims in accordance with its obligations under the Legal Services Directions 2017. It is not possible to estimate the amounts and the timing of any eventual payments that may be required in relation to these claims.

As at reporting date the Department holds a number of contingent assets in the form of securities that it collects as part of its revenue collection processes. The number of these securities that may be surrendered to the Commonwealth due to failure to meet legislative requirements cannot be estimated. The amount that may be collected is not quantifiable. From time to time, the Department needs to enforce these securities and collect the associated revenue.

IMMIGRATION DETENTION SERVICES BY STATE AND TERRITORY GOVERNMENTS - LIABILITY LIMIT

The Department has negotiated arrangements with a number of state and territory governments for the provision of various services (including health, education, corrections and policing services) to immigration detention facilities and people in immigration detention. Some jurisdictions sought indemnification by the Australian Government for the provision of those services. These agreements contain unquantifiable indemnities relating to any damage or loss incurred by state and territory governments arising out of, or incidental to, the provisions of services under the proposed agreements.

IMMIGRATION DETENTION SERVICES CONTRACT - LIABILITY LIMIT

The Department entered into a contract with Serco Australia Pty Ltd (Serco), which commenced on 11 December 2014, to deliver immigration detention services in Australia on behalf of the Australian Government at immigration detention facilities. The contract terms limit Serco’s liability to the Department to a maximum of any insurance proceeds recovered by Serco up to a value of $330 million. Serco’s liability is unlimited for specific events defined under the contract.

GARRISON AND WELFARE SERVICES AT REGIONAL PROCESSING CENTRES CONTRACT - LIABILITY LIMIT

The Department entered into a contract on 24 March 2014 with Broadspectrum Limited (BRS) (formally known as Transfield Services Ltd) for the provisions of garrison and welfare services at Regional Processing Centres on behalf of the Australian Government. The contract terms limit BRS’s liability to the Department to a maximum of any insurance proceeds recovered by BRS up to a value of $50 million.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 187 186

7.3 Financial instruments

2017 $’000

2016 $’000

Note 7.3A: Categories of financial instruments

Departmental

Financial assets measured at amortised cost

 

 

 

 

 

 

 

 

 

Cash and cash equivalents 4,214   3,409

Trade and other receivables 24,854   22,243

Total financial assets 29,068   25,652

       

Financial liabilities measured at amortised cost      

Suppliers

Total financial liabilities

214,804

214,804

 

 

264,222

264,222

Administered      

Financial assets measured at amortised cost      

Cash and cash equivalents 55,239   45,609

Non-taxation receivables 731   280

Total financial assets 55,970   45,889

       

Financial liabilities measured at amortised cost      

Suppliers 244,744   211,321

Total financial liabilities 244,744   211,321

       

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 189 188

8. Explanation of Budget Variances

8.1 Budget variances commentary and reporting The following provides an explanation of the variance between the original budget as presented in the 2016-17 Portfolio Budget Statements (PBS) and the 2016-17 final actual result. The budget is not audited. The budget figures as reported in the PBS have been restated to align with the presentation and classification adopted in the financial statements.

Explanations are provided for major budget variances. Variances are treated as major when it is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of the Department.

The nature and timing of the Commonwealth’s budget process can also contribute to the variances of an organisation. For the Department’s variance analysis, the major budget impacts include: • Estimated actual outcomes were published in the 2016-17 PBS before the closing 2015-16

and opening 2016-17 Statement of Financial Position were known. This has a flow-on impact to closing balances of items in the 2016-17 PBS Statement of Financial Position; • The original budget as presented in the 2016-17 PBS is amended by Government throughout the year. The Department’s budget for 2016-17 was updated as part

of the 2016-17 Portfolio Additional Estimates Statements (PAES) process and again as part of the 2017-18 PBS process where ‘revised actuals’ for 2016-17 are presented as comparatives for the 2017-18 budget figures; and • The Department is subject to a number of variable funding mechanisms which will automatically increase or decrease Departmental revenue from Government in the event that specified Immigration and Citizenship related activity levels deviate from those which were anticipated when the budget was prepared.

The variance commentary below will make mention of these factors where applicable.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 189 188

8.1A Explanations for major variances

DEPARTMENTAL EXPENSES

The total variance between departmental expenses and the original budget estimate is an increase of $181 million (or 7%). Increases in expenses can be attributed to: • Supplier expenses were $52 million higher than original budget as a result of providing an increased level of service. The additional service predominantly relates to the

International Settlement Strategies - enhanced border protection measures and resettlement of refugees, as well as supplier costs associated with the additional amount of visa processing achieved throughout the year above that reflected in the original budget. The majority of the increase ($45 million) was recognised in the PAES update; • Employee benefits were $54 million above the initial budget estimate, predominantly

due to the higher volume of service delivery than had been initially anticipated. Labour costs are a primary driver behind the number of achieved visa finalisations; and • Depreciation expense increased by $53 million compared to the original budget largely due to changes in asset values from external revaluations, changes in useful lives due to

adjustments in asset usage and the timing of capitalisations differing from that which was forecast in the original budget. PAES adjustments accounted for $41 million of this increase.

DEPARTMENTAL INCOME

The total variation between departmental income and the original budget estimate is an increase of $137 million (or 6%). This increase can predominantly be attributed to: • An additional $104 million appropriation funding recognised over the course of the year from a combination of variable funding model adjustments ($72 million) linked to higher

than anticipated levels of activity and new monies provided in the PAES update ($32 million - notably including $21 million for the International Settlement Strategy); and • Increases in own source revenue ($28 million), based on a combination of Electronic Travel Authority fees ($12 million revenue, $12 million expense which was budgeted

on net terms), and a range of smaller elements including the loaning of a number of Cape Class Vessels to the Department of Defence ($3 million), contribution from the Department of Foreign Affairs and Trade for the Nauru Hospital ($2 million) and general increases in activity since 2014-15 (the actuals on which the budget figure was based).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 191 190

DEPARTMENTAL ASSETS

Total departmental assets are $203 million (or 10%) less than the original budgeted position. This consists of $65 million in financial assets and $138 million in non-financial assets.

The variance for financial assets is primarily due to a number of non-recurring receivables and accruals recorded in 2014-15. Whilst these were not repeated in the following financial year, they did form the basis on which the original budget position was estimated. The final position is broadly in line with the revised estimate provided during the PAES process. The two key non-recurring items were: • $19 million linked to capital expenditure work supplied by the Department to ACBPS; and • A $15 million Fringe Benefits Tax (FBT) refund receivable relating to the

difference between FBT instalments paid and the final FBT liability.

The non-financial assets are lower by $138 million, with $50 million relating to the difference in the opening actuals balance as at 1 July 2016 compared to the 2015-16 estimated actuals used for the opening balance in the original budget set in May 2016. The difference was due to revaluations as at 30 June 2016 that were not reflected in the budgeted year-end position.

The remaining difference ($88 million) predominantly relates to: • An increase in depreciation expense of $53 million arising from new capitalisations and shortened useful lives of non-financial assets due to changes in usage; • An underspend of capital expenditure of $20 million mainly due to the slippage of

New Policy Proposal projects (notably including Enterprise Project Management, Outward Automated Passenger Processing (Foreign Fighters), ABF Mobile Technologies, Emerging International Airports and Equipping the ABF); and • A $19 million write down of assets that had not been anticipated at the time the budget was prepared.

DEPARTMENTAL LIABILITIES

Total departmental liabilities are $58 million (or 8%) less than the original budgeted position. This decrease is largely attributed to lower than anticipated employee provision balances of $53 million. The lower employee provision balances is the result of a changed staffing profile since 2014-15 (the actuals on which the budget figures were based) and a budgeted pay rise not occurring.

DEPARTMENTAL CASH FLOW

The amounts reported in the departmental Cash Flow Statement are interrelated with figures disclosed in the Statement of Comprehensive Income and Statement of Financial Position. Consequently, variances in this Statement will be attributable to the relevant variance explanations provided above under departmental expenses, departmental revenue, departmental assets and departmental liabilities.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 191 190

8.1B Explanations for major administered variances

ADMINISTERED EXPENSES

The total variation between the administered expense and the original budget estimate is a decrease of $90 million (or 4%).

This can be predominantly attributed to: • Supplier expenses were $114 million lower than budget largely due to lower rates of returns and removals and underspends in legal costs, as the rate of removals and flows of claims to litigation has been slower than anticipated.

Additionally, there has been lower than expected student numbers in the Education and English as a Second Language programs. The Department received government approval to move total funding of $118 million from the 2016-17 financial year into the forward estimates which is reflected in the results; • Personal benefits expense was lower than the original budget by $60 million

largely due to a reduction in the number of people receiving Income Support and associated payments as part of the Status Resolution Support Services (SRSS) program. This has been driven by finalisations of visa applications for individuals being assisted under the program; and • There was higher than expected depreciation and amortisation costs

of $59 million that offsets the lower expenses above. Depreciation increased due to changes in asset values from external revaluations, changes in useful lives due to changes in asset usage and the timing of capitalisations differing from what was forecast in the original budget.

ADMINISTERED INCOME

The total variation between the administered income and the original budget estimate is an increase of $265 million (or 2%).

The Customs Duty collected in 2016-17 was $14,195 million, $186 million above the original estimate of $14,009 million. This can predominantly be attributed to Excise Equivalent Goods with volumes remaining above budgeted values, in particular tobacco imports.

Visa Application charges actuals were $18m (or 1%) higher than the original budget due to increased demand in visitor visas.

Other tax collections were $39m (or 3%) higher than the original budget due to an increase in eligible departing passengers made up of visitors and departing residents.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 193 192

ADMINISTERED ASSETS

Total assets are $65 million (or 3%) less than the original budgeted position.

Financial assets ended $301 million above budget. The closing taxation receivables are $241 million (or 93%) higher than the original budget. This is in part due to slight increases in duty revenue recognition and the timing of weekly settlement process with large imports of Excise Equivalent Goods. This is a timing impact that was not included in the budget receivable figure.

Non-financial assets are $366 million less than the original budgeted position. Of this amount, $237 million relates to the difference in the opening actuals balance in July 2016 compared to the original budget set in May 2016. The remaining balance ($129 million) has been influenced by: • A decrease of $59 million due to depreciation being higher compared to the original

budget as a result of new capitalisations and shortened useful lives of non-financial assets linked to changes in planned usage of onshore detention centres; • Reduced capital expenditure of $24 million compared to budget that relates primarily to delays due to the Public Works Committee approval process

which was temporarily delayed due to the 2016 Federal Election; and • A decrease of $17 million due to valuation changes for eight blocks of land and one building as a result of current year external revaluation advice.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 193 192

Management and accountability

PART 5

CORPORATE GOVERNANCE 197

EXTERNAL SCRUTINY 209

CLIENT SERVICE 218

HUMAN RESOURCES MANAGEMENT 225

WORK HEALTH AND SAFETY 238

PROCUREMENT, SERVICES, ASSETS AND GRANTS

242

ECOLOGICALLY SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE

248

PART 5: Management and accountability

Statement of main governance practices

T he Department of Immigration and Border Protection (the Department or DIBP) has responsibility for administering legislation, policy development, programme management, compliance and service delivery. Given the breadth of these responsibilities, it is essential that the Department have a clear framework for its governance and decision-making processes, and that roles and responsibilities be clearly defined to ensure that objectives are achieved effectively and efficiently.

MANAGEMENT AND ACCOUNTABILITY 197 196

CORPORATE GOVERNANCE

Senior executives at 30 June 2017.

Michael Pezzullo was the Secretary of the Department, a position to which he was appointed on 13 October 2014. Michael was responsible for more than 13,700 staff across the Department and the Australian Border Force. He was responsible for ensuring the integrity of Australia’s borders, with border security a key component of Australia’s national security arrangements. Michael administered the effective management of the movement of people and goods across our border and maintained the integrated Department’s integrity.

Michael Outram APM was the acting Australia Border Force Commissioner. Michael leads officers responsible for protecting Australia’s national borders and fostering lawful cross-border trade and travel. Michael oversees a range of complex capabilities and assets, including a fleet of ocean-going patrol vessels, systems to manage people and goods at border entry and exit points, investigations into serious and organised fraud of our visa system and exploitation of illegal workers, and the onshore immigration detention network.

MANAGEMENT AND ACCOUNTABILITY 197 196

Jenet Connell was the Chief Operating Officer and Deputy Secretary, Corporate Group. Jenet had responsibility for the delivery of people, health, corporate support, finance, ministerial and parliamentary services, communications, property, enterprise strategy and reform, and legal, integrity, risk, security and assurance services.

Maria Fernandez was the Deputy Secretary of the Intelligence and Capability Group. Maria was responsible for bringing together integrated support and enabling functions for the Department, including delivering and sustaining ICT systems, managing delivery of the capital investment programme and providing the departmental intelligence and biometrics capabilities.

MANAGEMENT AND ACCOUNTABILITY 199 198

Rachel Noble PSM was the Deputy Secretary Policy Group and Deputy-Comptroller-General. Rachel was responsible for ensuring the Department’s comprehensive policy capability, including strategic policy and planning, immigration and citizenship, trade, traveller, customs, industry, and international policy.

MANAGEMENT AND ACCOUNTABILITY 199 198

Kaylene Zakharoff was the acting Deputy Secretary of the Visa and Citizenship Services Group, replacing Michael Manthorpe, who left the Department in May 2017. The Deputy Secretary Visa and Citizenship Services Group is responsible for visa and citizenship programmes, including service delivery and decision making spanning pre-lodgement, application, visa grant or refusal, visa cancellation, and conferral and revocation of citizenship. Kaylene is also responsible for the administration of the Refugee and Humanitarian Assistance Programme.

Wayne Buchhorn was the Acting Deputy Commissioner for the Operations Group within the Australian Border Force. Wayne was responsible for all operational activity relating to the management of travellers goods and cargo throughout the border continuum. This also included contributing to whole-of-government law enforcement and national security outcomes, while maintaining Australia’s sovereignty through border protection of both land and maritime domains.

MANAGEMENT AND ACCOUNTABILITY 201 200

Mandy Newton APM was the Deputy Commissioner of the Support Group within the Australian Border Force from April 2017. The Group was responsible for delivering operational continuity through planning, support and training to achieve the ABF’s operational outcomes. This included monitoring customs and immigration compliance and the delivery of specialist maritime capabilities, as well as the implementation and development of the operational workforce function. Mandy also led operational support for detention, including health and estate management, the wellbeing of children, and community programmes and settlement services, in addition to offshore regional processing activities, including the Manus Island decommissioning.

Senior management committees

Governance within the Department refers to the arrangements and practices that enable it to set directions and manage operations to achieve its mission, deliver stated priorities, and meet accountability obligations. It is a combination of mechanisms, processes and structures designed to support good decision-making at all levels.

The Department’s executive governance structure consists of a range of governance bodies and external/independent committees. It provides clear and transparent governance arrangements that have produced an effective and open decision-making

system with clearly defined roles and responsibilities. This includes accountability and delegation for decision-making that encourages the best use of organisational capabilities and support in achieving our goals and objectives.

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) sets out requirements for the governance, reporting and accountability of Commonwealth entities and for their use and management of public resources. It vests many of the powers and responsibilities for the financial management of a Commonwealth entity in

the hands of the accountable authority, and sets out a series of duties that the authority must meet.

The Secretary was the accountable authority under the PGPA Act, and was supported by the: • Executive Committee • Deputies Committee • Risk Committee • Audit Committee

The Australian Border Force Commissioner was supported by the: • Strategic Command Group • Operational

Requirements Group • Operational Tasking and Coordination Group

MANAGEMENT AND ACCOUNTABILITY 201 200

Figure 7: Senior governance bodies for 2016-17

External/ Independent

Department of Immigration and Border Protection

Secretary Commissioner Tier 1 Committees Tier 2 Committees

Audit Committee

Chair: Independent

Risk Committee

Chair:

Chief Operating Officer

Deputies Committee

Convenor: Chief Operating Officer

Operational Requirements Group Chair: Deputy Commissioner Support

Operational Tasking and Coordination

Group

Chair: Deputy Commissioner

Operations

Executive Committee

Chair: Secretary

Strategic Command Group

Chair: Commissioner

MANAGEMENT AND ACCOUNTABILITY 203 202

Executive Committee

The Executive Committee department-wide matters, The Executive Committee was the Department’s including high-level strategy, was chaired by the Secretary, premier forum for decision- planning, resource allocation, who was the final decision-making by the Secretary, the operations, implementation, maker on department-ABF Commissioner and the assurance and evaluation. wide matters brought Deputies on all corporate and before the Committee.

Deputies Committee

The Deputies Committee was the Department’s performance, resource was convened by the Chief forum for consultation allocation, financial Operating Officer, whose

and coordination on major management, people, culture, role was to facilitate open corporate and department- operations, implementation, discussion, problem solving wide matters, including assurance and evaluation. and the resolution of issues.

high-level strategy, planning, The Deputies Committee

Audit Committee

Section 45 of the PGPA Act requires the Secretary to Committee comprised Committee perform its ensure that the Department three external members, functions, a Financial has an audit committee. The including the Chair, and two Statements Sub-Committee, role of the Audit Committee departmental members. The chaired by an external was to review and provide Committee met six times in Audit Committee member, independent assurance and 2016−17, including a special met regularly to review assistance to the Secretary meeting to clear the financial the process of preparing and ABF Commissioner statements. The Chair the Department’s annual on the appropriateness reported to the Secretary and financial statements. of the Department’s risk ABF Commissioner after oversight and management, each meeting on key issues system of internal controls, arising from the Committee’s financial reporting and meeting and activities. performance reporting.

In 2016-17 the Audit To support the Audit

MANAGEMENT AND ACCOUNTABILITY 203 202

Risk Committee

The Risk Committee management improvement Group in the Department. advises the Secretary and activities. It is chaired by the The Risk Committee Commissioner, through Deputy Secretary Corporate replaces the previous the Executive Committee, Group and has representation Risk Working Group.   on critical risks and risk at the Band 2 level from every

Strategic Command Group

The Strategic Command operational priorities officer for the decisions and Group (SCG) was responsible for the financial year. directions of the SCG, which for endorsing input into met once every three months.

the Department’s strategic The ABF Commissioner was plan, and for setting ABF the chair and responsible

Operational Requirements Group

The Operational Requirements Group Group, set the capability monthly, with the option to (ORG) coordinated the direction aligned with the increase frequency and/or provision of advice and SCG’s operational priorities call emergency meetings information for the ABF’s and provided awareness and if the Chair required. support capabilities. The assessment of the ABF’s ORG, chaired by Deputy

Commissioner Support

existing and future capability

needs. Meetings were held

Operational Tasking and Coordination Group

The Operational Tasking and Coordination Group (OTCG), all organisational units priorities set by the SCG. formerly Strategic Tasking responsible for ABF and Coordination Group, operational activities. Deputy Commissioner supported the work of the Operations Group was the

Strategic Command Group The OTCG was responsible chair and the responsible (SCG) and reported to it. The for ensuring the officer for the decisions and OTCG was responsible for completion, monitoring directions of the OTCG, developing, implementing and implementation of which met monthly. and monitoring operational enforcement strategies and priorities authorised by the intelligence, disruption, the SCG. These were used enforcement and compliance

to provide direction to plans for operational

MANAGEMENT AND ACCOUNTABILITY 205 204

Business and corporate planning

Business planning aligns activities undertaken by the Department’s business areas to its strategic objectives and purposes. In 2016−17 the practice enabled business areas to identify their priorities by assessing how they would contribute to achieving the organisational outcomes outlined in Strategy 2020 and Corporate Plan 2016−17, and helped to establish clearer lines of accountability.

Corporate Plan 2016−17 is the Department’s principal annual planning document. It is the operational companion to Strategy 2020 and ABF 2020, and is aligned with the broader reform programme. Produced annually and covering a four-year period, it articulates what we will do and how we will measure our success.

Corpor ate Plan 2016−17,

published on 31 August 2016 (in accordance with the PGPA Act), was the second corporate plan to be produced under the enhanced Commonwealth performance framework and the first to include the Department’s three purposes: • manage the movement

of people and goods to contribute to a strong economy • manage the movement and stay of people to contribute to a cohesive society • manage the border to contribute to a safer, secure Australia.

These purposes describe the benefits delivered to the Australian community and form the basis against which departmental performance is measured. The performance measures contained within the 2016−17 plan are reported throughout this Annual Report.

MANAGEMENT AND ACCOUNTABILITY 205 204

Risk, fraud and integrity measures

Risk management The Department operates in a complex and high-risk environment. A comprehensive and active approach to risk management helps us anticipate, identify and respond to risk for all departmental activities and reflects our obligations in accordance with section 16 of the PGPA Act and the Commonwealth Risk Management Policy49.

In 2016−17 the Department focused on maturing its approach to identifying and managing risk. It established a Risk Committee, chaired by a Band 3 officer, to help to improve risk management at all levels and provide oversight of managing enterprise risks. The Committee also focused on reassessing and improving its approach to managing the Department’s enterprise risks.

The roadmap for strengthening the management of risk is focused on improving risk behaviour, integrating risk with other governance and strategic planning activities, and creating a positive risk culture within the Department.

Internal audit arrangements The Strategic Assurance Programme (SAP) is one of the principal risk-mitigation measures and an integral element of the Department’s assurance model. The SAP 2016−17 incorporated all independent assurance activities conducted within the Department, including internal audits.

It was developed following an analysis of the Department’s risk profile and extensive consultation with senior executives.

There were 16 activities completed from the SAP 2016-17, covering the following key themes: • national security • significant reform and

change support • programme management • project management • procurement and

contract management • core corporate activities • Australian Border Force • information technology.

Recommendations from all assurance activities delivered through the SAP are tracked and monitored by the Department’s Chief Audit Executive and the Audit Committee.

49 www.finance.gov.au/sites/default/files/commonwealth-risk-management-policy.pdf

MANAGEMENT AND ACCOUNTABILITY 207 206

External audit

Fraud control and anti-corruption measures Given the Department’s unique operating environment, robust and well-developed mechanisms to assess and manage fraud and corruption risks are critical.

Following the integration of DIBP with ACPBS from 1 July 2015, the Department developed the Fraud Control and Anti-corruption Framework and Fraud Control and Anti-corruption Plan 2015-2017 to detail its approach to and strategy for managing internal fraud and corruption risks. These documents focused on managing risks during integration.

As required by the Commonwealth Fraud Control Framework 2014 and section 10 of the Public Governance, Performance and Accountability Rule 2014, during 2016−2017

the Department conducted fraud and corruption risk assessments covering key functions. These guided the development of the Fraud Control and Corruption Prevention Plan 2017-2019, which details how the Department meets its obligations under the Commonwealth Fraud Control Framework to deter, detect and deal with fraud and corruption.

The Department’s Executive, line areas and the Integrity, Security and Assurance (ISA) Division manage fraud and corruption risk through a strategic partnership. The Division’s Fraud Control Office (FCO) plays a critical role by analysing systemic fraud and corruption risks across the Department and helping line areas to conduct and develop their own assessments by identifying risks, controls and treatment actions.

The FCO updates the Audit Committee on fraud and corruption matters, under a standing agenda item. The Committee is told whether matters have been considered and addressed through fraud and corruption risk assessments, and advised of their potential financial impact. This information enables the Audit Committee to fulfil its oversight responsibilities.

The Department is working to enhance its reporting capability, including improving the way in which instances of fraud and corruption are recorded and reported.

MANAGEMENT AND ACCOUNTABILITY 207 206

Accountability, integrity and ethical standards

Establishing and maintaining ethical standards The Department’s Integrity Framework, implemented at integration on 1 July 2015, had been in place for two years at the end of the reporting period. It contains policy measures to protect the Department and its staff against corruption risks, and to promote a professional, accountable and ethical workforce. These measures include mandatory reporting, drug and alcohol testing, employment suitability screening and integrity testing.

The Department’s Integrity and Professional Standards (I&PS) Branch investigates alleged breaches of the APS Code of Conduct and other Commonwealth

legislation. Over the 2016−17 financial year, the Special Investigations Unit, situated in the I&PS Branch, expanded its ability to investigate serious and sensitive integrity issues. The Branch also worked closely with the Australian Commission for Law Enforcement Integrity (ACLEI) and other partner agencies to detect, investigate and deter corruption issues in the Department.

In 2016−17 the Department released the Our Professional Standards eLearning course to help departmental staff to understand their obligations under the Integrity Framework. The course is the newest addition to a suite of mandatory eLearning courses that cover the professional standards

obligations of all staff, and must be completed annually.

An Ethical Decision-Making training programme, which was piloted in 2015−16, continued to be delivered across the Department in 2016−17. It is intended to provide staff with the skills to recognise ethical decisions in the workplace and to identify vulnerabilities, bias and risk in decision-making.

Leadership conversations continue to be held with Senior Executive Service (SES) and Executive Level (EL) staff to explore how the Integrity Framework applies in the workplace, and to equip EL staff to have similar conversations with their teams.

Notification requirements of section 19 (1)(e) of the Public Governance, Performance and Accountability Act 2013

There are no matters to be reported.

MANAGEMENT AND ACCOUNTABILITY 209 208

EXTERNAL SCRUTINY

Developments in external scrutiny

Reports by external bodies

Office of the Australian Information Commissioner The Department continued to work closely with the Office of the Australian Information Commissioner (OAIC) in 2016−17. The OAIC conducted six privacy assessments under the Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014 over the course of 2016−17: • Assessment of Schedule 5

of the Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014 - finalised October 2016 • Assessment of Schedule 6

of the Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014 - finalised October 2016 • Assessment of Schedule 7

of the Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014 - yet to be finalised • Assessment of Schedule 5

of the Counter-Terrorism Legislation Amendment (Foreign Fighters) Act

2014 - yet to be finalised • Assessment of Schedule 6 of the Counter-Terrorism

Legislation Amendment (Foreign Fighters) Act 2014 - yet to be finalised • Assessment of Schedule 5 of the Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014 - yet to be finalised.

All finalised assessments reports, which include the Department’s response to assessment recommendations, are publicly available on the OAIC website.50

The OAIC also undertook an additional privacy assessment examining the way the Department manages passenger name record (PNR) data. This assessment was conducted under a Memorandum of Understanding (MoU) between the Department and the OAIC. This MoU provides funding to the OAIC to undertake annual privacy

reviews of the Department’s handling of PNR data. The current assessment is yet to be finalised.

Australian Human Rights Commission The Australian Human Rights Commission (AHRC) reports under the Australian Human Rights Commission Act 1986. Ten reports concerning the Department’s activities were tabled in the Australian Parliament and subsequently published on the AHRC website.51 This was an increase from six reports tabled in 2015-16.

The reports were: • No. 104 Lee family and Misinale family v Commonwealth of

Australia (DIBP) (tabled November 2016) • No. 106 Ms Bakhtiari and Master Reza Bakhtiari

v Commonwealth of Australia (DIBP) (tabled November 2016) • No. 107 Six persons with adverse security

50 www.oaic.gov 51 www.humanrights.gov.au

MANAGEMENT AND ACCOUNTABILITY 209 208

assessments detained in immigration detention, and family members affected by their detention v Commonwealth of Australia (DIBP) (tabled November 2016) • No. 108 Bam v

Commonwealth of Australia (DIBP) (tabled April 2017) • No. 109 Bakhtiari v Commonwealth of Australia (DIBP) (tabled April 2017) • No. 110 Ms AR on behalf of Mr AS, Master AT and Miss AU v Commonwealth of Australia (DIBP) (tabled April 2017) • No. 111 BA v Commonwealth of Australia (DIBP) (tabled June 2017) • No. 112 AX v Commonwealth of Australia (DIBP) (tabled June 2017) • No. 114 BF on behalf of Master BG v Commonwealth of Australia (DIBP) (tabled June 2017) • No. 115 BW v Commonwealth of Australia (DIBP) (tabled June 2017).

Reports from the Office of the Commonwealth Ombudsman The Commonwealth Ombudsman released four investigation reports concerning the Department’s activities in 2016-17: • Investigation into the

Tourist Refund Scheme and the application of the 30 minute rule • The Administration of Section 501 of the Migration Act 1958 • The Administration of people who have had their bridging visa cancelled due to criminal charges or convictions and are held in immigration detention • Investigation into the processing of asylum seekers who arrived on the SIEV Lambeth in April 2013.

The annual report on the Commonwealth Ombudsman’s monitoring of agency access to stored communications and telecommunications data under Chapters 3 and 4 of the Telecommunications (Interception and Access) Act 1979 was also released in

2016−2017. It presents the results of the Commonwealth Ombudsman’s inspection of 20 law enforcement agencies, including DIBP.

The Commonwealth Ombudsman is required by the Migration Act 1958 to report on the appropriateness of immigration detention arrangements for each person detained for more than two years. Each report is provided to the Minister for Immigration and Border Protection, along with a de-identified version that the Minister must table in the Australian Parliament.

These reports are publicly available at the Commonwealth Ombudsman’s website.52

Reports by the Auditor-General The Auditor-General released seven audit reports that examined the Department in 2016−17.

Four of these reports assessed functions undertaken only by the Department:

52 www.ombudsman.gov.au.

MANAGEMENT AND ACCOUNTABILITY 211 210

• Delivery of Health Services in Onshore Immigration Detention (ANAO Report No. 13 2016−17): The audit objective was to assess the effectiveness of the Department’s administration of health services in onshore immigration detention. • Offshore Processing

Centres in Nauru and Papua New Guinea: Procurement of Garrison Support and Welfare Services (ANAO Report No. 16 2016−17): The audit objective was to assess whether the Department had appropriately managed the procurement of garrison support and welfare services at offshore processing centres in Nauru and Papua New Guinea (Manus Island), and whether the processes adopted met the requirements of the Commonwealth Procurement Rules, including consideration and achievement of value for money. • Offshore Processing

Centres in Nauru and

Papua New Guinea: Contract Management of Garrison Support and Welfare Services (ANAO Report No. 32 2016−17): The audit objective was to assess whether the Department adopted sound contract management practices for the delivery of garrison support and welfare services for offshore processing centres in Nauru and Manus Island. • The Australian Border

Force’s Use of Statutory Powers (ANAO Report No. 39 2016−17): The audit objective was to assess the establishment and administration of the ABF’s framework to ensure the lawful exercise of powers in accordance with applicable legislation.

Three of these reports assessed functions undertaken by several agencies, including the Department: • Controls over Credit Card

Use (ANAO Report No. 8 2016−17 - cross-entity audit): The audit objective was to assess whether

selected entities (DIBP, Australian Public Service Commission and Fair Work Ombudsman) are effectively managing and controlling the use of Commonwealth credit and other transaction cards for official purposes, in accordance with legislative and policy requirements. • Government Advertising:

March 2013 to June 2015 (ANAO Report No. 22 2016−17 - cross-entity audit): The audit objectives were to assess the effectiveness of the ongoing administration of the Australian Government’s campaign advertising framework ( by the Department of Finance); and assess the effectiveness of the selected entities’ (DIBP, Department of Treasury and Department of Education and Training) administrations in developing advertising campaigns and implementing key processes against the requirements of the campaign advertising

MANAGEMENT AND ACCOUNTABILITY 211 210

framework applying at the time, and relevant legal and government policy requirements. • Cybersecurity Follow-up

Audit (ANAO Report No. 42 2016−17 − cross-entity audit): The audit objective was to re-assess the three entities’ (DIBP, Australian Taxation Office and Department of Human Services) compliance with the ‘Top Four’ mandatory strategies in the Australian Government Information Security Manual (ISM). The audit also examined the typical challenges faced by entities to achieve and maintain their desired ICT security posture.

These reports were tabled in the Australian Parliament and are publicly available on the Australian National Audit Office’s website. 53

Child Protection Panel A public version of the Child Protection Panel’s report Making Children Safer: The wellbeing and protection of children in immigration detention and regional processing centres54, was released on 16 December 2016. The report made 17 formal recommendations which the Department accepted fully, partially or in principle.

Royal Commission into Institutional Responses to Child Sexual Abuse The Royal Commission into Institutional Responses to Child Sexual Abuse conducted a public hearing of Case Study 51 on 6-8 March 2017. Senior officers of the Department and a representative of the Child Protection Panel attended the hearing on

6 March 2017 to respond to the Commissioner’s inquiries regarding the Immigration portfolio. As part of the hearing, the Royal Commission examined the response of the Commonwealth Government to the recommendations of the Child Protection Panel in its report, Making Children Safer: The wellbeing and protection of children in immigration detention and regional processing centres.

53 www.anao.gov.au 54 www.border.gov.au/ReportsandPublications/Documents/cpp-report-making-children-safer.pdf

MANAGEMENT AND ACCOUNTABILITY 213 212

Capability reviews

The Department Functional and Mr Smith gave his report to

conducted three capability Efficiency Review the Minister for Immigration reviews in 2016−17. As part of the Government’s and Border Protection and Efficiency through the Minister for Finance in

Detention Contestability Programme, October 2016. It included

Capability Review55 the Department participated 48 recommendations, to The Detention Capability in a Functional and Efficiency which the Department is Review was a thorough Review. Led by Mr Ric Smith, preparing a formal response. examination of the a former Secretary of the

immigration detention Department of Defence, RAND report56 network, undertaken to the review assessed the In 2016 the RAND ensure that it is strategically efficiency and effectiveness Corporation, at the aligned, affordable, of the Department’s Department’s invitation,

sustainable and supports operations, programmes and analysed the effectiveness capability needs now and administration across the and efficiency of the in the future. The findings full extent of its functions, integrated Department. of the review reflect the including immigration, RAND found that, overall, limited utility and high customs, border protection integration had served as cost of the long-term and and civil maritime security, a catalyst for increasing widespread use of held to ensure they aligned operational effectiveness detention as a means of with the Government’s and efficiency, and that managing individuals priorities. The review further substantial progress had while their immigration considered the Department’s been made in building the status is being resolved. ability to achieve its capability of the integrated

Ultimately, better outcomes outcomes, whether its organisation. Significant and efficiencies can be functions were appropriate improvements were seen in achieved through improved for government to undertake, the integrated Department’s approaches involving greater and examined opportunities approach to intelligence use of placement options for contestability. sharing and investigations. aligned to an individual’s risk assessments.

55 www.border.gov.au/ReportsandPublications/Documents/reviews-and-inquiries/dcr-final-report.pdf 56 www.border.gov.au/ReportsandPublications/Documents/reviews-and-inquiries/assessment- consolidation-acbps-dibp-report-rand.pdf

MANAGEMENT AND ACCOUNTABILITY 213 212

RAND’s analysis also identified opportunities for improvement and the importance of continued leadership drive and commitment, which the Department is working to implement. The Department

is committed to fostering a single organisational culture and capacity building across the organisation to enhance its effectiveness. A year after publication of this report, the RAND Corporation will conduct

a follow-up evaluation of the progress of integration, along with an assessment of lessons learned from the Department’s integration experiences during 2014-17.

MANAGEMENT AND ACCOUNTABILITY 215 214

Reports from parliamentary committees

The Parliament of Australia may refer bills, policies or issues affecting the wider community to a

parliamentary committee for inquiry. The table below outlines parliamentary committee reports released

during the reportable period when the Department was the lead agency.

Table 15: Reports from parliamentary committees 2016-17

Report Committee Date

Migration Amendment (Family Violence and Other Measures) Bill 2016 [Provisions]57 Senate Legal and Constitutional Affairs Legislation Committee

10 October 2016

Review of the declaration of Islamic State as a terrorist organisation under the Australian Citizenship Act 200758

Parliamentary Joint Committee on Intelligence and Security 7 November 2016

Migration Legislation Amendment (Regional Processing Cohort) Bill 2016 [Provisions]59 Senate Legal and Constitutional Affairs References Committee

22 November 2016

Migration Amendment (Visa Revalidation and Other Measures) Bill 2016 [Provisions]60 Senate Legal and Constitutional Affairs References Committee

28 November 2016

Migration Legislation Amendment (Code of Procedure Harmonisation) Bill 2016 [Provisions]61

Senate Legal and Constitutional Affairs References Committee 14 February 2017

Proposed Yongah Hill Immigration Detention Centre Hardening Project at Mitchell Avenue, Northam, Western Australia62

Parliamentary Standing Committee on Public Works 30 March 2017

Serious allegations of abuse, self-harm and neglect of asylum seekers in relation to the Nauru Regional Processing Centre, and any like allegations in relation to the Manus Regional Processing Centre63

Senate Legal and Constitutional Affairs References Committee 21 April 2017

Proposed fit-out of new leased premises for the Department of Immigration and Border Protection Headquarters Project64

Parliamentary Standing Committee on Public Works 22 May 2017

Proposed Melbourne Immigration Transit Accommodation Project, Broadmeadows, Victoria65

Parliamentary Standing Committee on Public Works 29 May 2017

MANAGEMENT AND ACCOUNTABILITY 215 214

57 www.aph.gov.au/Parliamentary_Business/Committees/Senate/Legal_and_Constitutional_Affairs/MigrationFamilyViolence/Report 58 www.aph.gov.au/Parliamentary_Business/Committees/Joint/Intelligence_and_Security/decofIslamicState/Report 59 www.aph.gov.au/Parliamentary_Business/Committees/Senate/Legal_and_Constitutional_Affairs/RegionalProcessing2016/Report 60 www.aph.gov.au/Parliamentary_Business/Committees/Senate/Legal_and_Constitutional_Affairs/VisaRevalidation2016/Report 61 www.aph.gov.au/Parliamentary_Business/Committees/Senate/Legal_and_Constitutional_Affairs/MigrationHarmonisation/Report 62 www.aph.gov.au/Parliamentary_Business/Committees/Joint/Public_Works/YongahHill/Report_1 63 www.aph.gov.au/Parliamentary_Business/Committees/Senate/Legal_and_Constitutional_Affairs/NauruandManusRPCs/Report 64 www.aph.gov.au/Parliamentary_Business/Committees/Joint/Public_Works/DIBPHeadquarters/Report_4 65 www.aph.gov.au/Parliamentary_Business/Committees/Joint/Public_Works/MITAProject/Report_5

Judicial and administrative tribunal decisions

Notable decisions One of the most significant judgements of the year was Plaintiffs M96A & Anor v Commonwealth & Anor [2017] HCA 16. It was a positive result for the Minister, with the High Court confirming that the Migration Act 1958 validly authorises the detention of transitory persons while they are in Australia for a temporary purpose.

Civil litigation The Department receives a relatively small number of claims for monetary compensation. Under the Legal Services Directions 2017, monetary claims can only be settled in accordance with legal principle and practice. Such a settlement requires the existence of at least a meaningful prospect of liability being established.

At 30 June 2017, departmental records indicate that there were 93 claims for compensation in the courts or with the Fair Work Commission.

Complaints

Office of the Commonwealth Ombudsman The Department received 376 complaints from the Commonwealth Ombudsman in 2016−17, a slight decrease of 6 per cent from the previous year.

There were 382 complaints finalised during 2016−17.

The Department received eight own motions in 2016−17, and four were closed during this period.

Australian Human Rights Commission The Department received 70 complaints from the Australian Human Rights Commission in 2016−17, a substantial decrease of 42 per cent from the previous year. Complaints from people in detention have significantly decreased.

There were 70 complaints finalised during 2016−17.

Office of the Australian Information Commissioner The Department received 10 privacy complaints from the Office of the Australian Information Commissioner in 2016−17. In all, 12 matters were resolved during the period.

MANAGEMENT AND ACCOUNTABILITY 217 216

Freedom of Information

In 2016−17 the Department received 19,267 Freedom of Information (FOI) requests, including amendment requests, compared with 23,977 requests received in 2015−16. This represents a 19 per cent decrease from the previous year. Of the requests received in 2016−17, 18,747 were for personal and 520 for non-personal information.

During the year the Department finalised 20,266 FOI requests. Of these 19,163 were access requests and 1,103 were amendment requests. Of the 19,163 access requests: • 11,232 cases were

granted full access • 5,815 cases were granted part access • 920 cases were

refused access • 1,196 applicants withdrew their requests

before a decision on access was made.

The Department’s FOI compliance rate (requests finalised within statutory timeframes) for 2016−17 was 28.9 per cent. At 30 June 2017, the Department had 3,284 overdue requests on hand.

MANAGEMENT AND ACCOUNTABILITY 217 216

CLIENT SERVICE

The Department is committed to excellence in client service and continues

to improve services by developing existing channels and expanding online

service delivery across visa and citizenship services, customs and trade.

Channel Strategy 2017−20

The Department is driving fundamental changes to the way in which it engages with individuals and businesses. It seeks to be a world leader in border management and to set the global benchmark in all facets of its work. Digital and business transformation is integral to achieving this. The Department’s Channel Strategy 2017-20, which was

endorsed by the Department in May 2017, describes how this will be done.

The Channel Strategy provides the enterprise-wide approach to management across digital, paper, in-person and phone channels. It provides the framework for the way the Department will deliver migration,

citizenship and trade information and advice to clients, using high-quality cross-channel technology and digital services, such as messages and alerts. The Channel Strategy also sets the direction for the Department to improve its servive delivery to an increasing number of people and businesses.

The client experience

The Department undertakes client-focused research to improve the design and delivery of its services. It continues to develop its user-centred design capabilities to provide a seamless experience for people engaging with the Department.

During 2016−17 the Department’s research included in-depth interviews and focus groups to understand clients’

experience and frustrations. The Department also conducted several rounds of usability testing of its revised visa product web pages that have been designed to better answer client queries and provide information in a clear and simple way. The Department also undertook research to improve its correspondence and to help clients better understand the information required at different points during the visa application process.

The Department obtains regular feedback from clients. The citizenship appointment booking service, available in Melbourne, has consistently received user satisfaction scores of 95 per cent and above. A survey following the appointment also provides useful insights to continuously improve the service to meet user needs. This information is regularly published on the Digital Transformation Agency’s performance dashboard.

MANAGEMENT AND ACCOUNTABILITY 219 218

Digital services

ImmiAccount, the Department’s digital front door, allows individuals and businesses to lodge, track, manage and pay for a range of visa and citizenship applications online, and to access a range of other departmental services. Use of ImmiAccount continues to grow, with some 5.7 million accounts created since 2013, and an average of 7,500 new forms submitted every day.

User research and feedback show that ImmiAccount continues to meet client needs and expectations. At the end of 2016, the Department introduced a more friendly mobile application and improvements to the ImmiAccount registration process. Further changes to support improved data capture have seen validation

of email addresses in online application forms, as well as changes to the way the Department captures consent to communicate with clients electronically. This has significantly reduced postal correspondence.

There were further changes to the Department’s online visa and citizenship application processes during 2016−17. These included expanding online lodgement for Chinese and Indian passport holders to apply for the tourist and business visitor streams of the Visitor (subclass 600) visa, and a new digital form for clients to apply for evidence of Australian citizenship. Reform of the Temporary Activity visa programme introduced new online forms to support clients applying for the new visa subclasses.

A range of new services were introduced to allow Australian citizens applying for an Asia-Pacific Economic Cooperation (APEC) Business Travel Card to lodge, renew, pay and manage their application online, through ImmiAccount. In addition, new forms provide electronic lodgement options for protection visas as well as online requests for cancellation of a temporary visa.

ImmiAccount will continue to be enhanced to provide a better online experience and easier access to important information and services in support of the Department’s long-term programme of transformational change to the way in which visa and citizenship services are delivered.

MANAGEMENT AND ACCOUNTABILITY 219 218

In-person services

As the Department improves digital services, it will be possible to do online many transactions that have previously been done in person. This will reduce cost and time for individuals, businesses and government.

The Department has made considerable progress in encouraging self-service through digital channels for visa, customs and trade functions, and is moving to an appointment-only operating model. This

will support the Channel Strategy’s aim of having high-cost in-person services preserved for individuals and businesses that need to access services in person.

One step in delivering the appointment-only model has been the development of the appointment booking service, piloted in Melbourne in 2016, for citizenship appointments. This will be extended to other departmental offices in 2017−18. The service lets clients book appointments

and if necessary change them to a more convenient time.

The Department has reduced the number of face-to-face transactions at its cargo clearance counters. All cargo clearance payments are now made electronically and work has begun to modernise the way the Department identifies importers and their representatives so that they do not have to present themselves at a counter.

Translating and Interpreting Service

The Translating and Interpreting Service (TIS National) provides high-quality, cost-efficient and secure language services for the Department. TIS National helps non-English speakers to communicate effectively with government departments and agencies, healthcare service providers, police and emergency services, utilities, banks and other organisations and businesses.

In 2016−17 TIS National provided 1,016,982 phone interpreting services and 106,361 on-site services through 2,694 independent contracted interpreters.

The Department recently obtained formal authority to continue to offer language services to organisations other than DIBP, at a market rate. The endorsed pricing model was introduced in the 2016−17 financial year and reduced the median

interpreting cost to clients by 20 per cent. These savings follow reductions in the true cost of service that have been achieved through continuous improvements and technology investments made by the Department.

There has been significant investment in innovative technology at TIS National. This includes the launch of TIS Video Connect in February 2017, a new channel using

MANAGEMENT AND ACCOUNTABILITY 221 220

commercial-grade video-conferencing technology to deliver remote, video-based interpreting services, as well as enhancements to TIS National’s telephony platform and the launch of TIS Voice in December 2016. TIS Voice has multiple components that offer lower cost

channels to clients as part of the Department’s channel management strategies.

There has been continuing development of TIS Online, an application that allows clients to self-manage on-site interpreting job requests and allows interpreters to

self-select their work. TIS Online was awarded the DIBP 2016 Australia Day Award Achievement Medallion for improved customer service. TIS National also won two gold Government Design Awards in 2016.

Sydney Service Centre

The Department implemented the findings of the operational review of the Sydney Service Centre, the Streamline Services Project. One outcome of the review has been the simplification of the interactive voice-response menu, reducing caller queues from 19 to five and redesigning the enterprise knowledge management system. This has streamlined the provision of client information and services.

In 2016−17, 65 per cent of all service centre calls were answered within 10 minutes, a 1 per cent improvement in the Department’s service standard when compared with the previous year.

There were significant improvements in other key performance indicators. The average speed to answer calls was 14:25 minutes, which was 2:95 minutes faster than the previous year. The average call handling time was 6:36 minutes, a decrease of 26 seconds on the previous year.

Calls per open hour handled (CPOH) is an industry standard that measures the number of calls taken by an information officer per hour. The Department introduced CPOH into the Sydney Service Centre as a key performance indicator in April 2016. Since its introduction, CPOH has improved from 7.9 calls per hour in 2015-16 to 8.4 calls per hour in 2016−17.

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Service standards

TIS National continued to demonstrate improved service standards. In 2016−17, 49.72 per cent of all TIS National calls were answered within 30 seconds, a 2.21 per cent increase from the previous financial year. In the same period, 85.24 per cent of all on-site bookings were assigned within three days of receipt, a 2.19 per cent increase on the previous financial year. These improvements can be attributed to continual enhancement to TIS National’s self-service on-site bookings platform, TIS Online.

In 2016−17, 50.16 per cent of all TIS National calls were assigned to an interpreter within three minutes. TIS National showed a slight increase providing accredited interpreters, with 93.6 per cent of all jobs performed by an interpreter accredited by the National Accreditation Authority for Translators and Interpreters (NAATI). This is attributable to TIS National’s targeted recruitment activities throughout the period.

The service standard for the Sydney Service Centre is to answer 85 per cent of

calls within 10 minutes. This is known as the ‘grade of service’ (GOS). The Centre’s GOS for the 2016-17 financial year was 65 per cent. This is an improvement from the 2015-16 financial year. Other important call centre metrics include average handle time (AHT), average speed to answer (ASA) and calls per open hour (CPOH). The table below shows that the Centre’s performance has improved on most metrics.

Table 16: Sydney Service Centre performance

FY Calls offered Calls accepted CPOH AHT ASA GOS

2015-16 1,818,758 1,248,911 7.9 07:02 17:20 64%

2016-17 1,814,696 1,233,666 8.4 06:36 14:25 65%

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Service delivery partners

The Department has outsourcing arrangements with companies overseas to provide visa lodgement support services as service delivery partners (SDPs).

At 30 June 2017, the Department had four commercial partners operating Australian Visa Application Centres in 51 countries. They are: • VFS Global Services

Pvt. Limited

• TT Visa Services Limited • Teleperformance Limited (TLScontact is the subsidiary that

delivers the services) • CSRA Limited.

SDPs provide administrative tasks including: • information services (for example, pre-

lodgement enquiries) • visa lodgement (including a quality assurance

completeness check)

• visa fee payment • biometric enrolment • data input • courier services.

SDP staff do not make visa decisions. Applications are couriered to the Department for processing and decisions are made in accordance with Australian migration legislation and policy. SDPs operate on a user-pays basis, where the visa applicant pays for the cost of the service.

Purchaser-provider arrangements

The Department has arrangements with the Department of Foreign Affairs (DFAT) and the Australian Trade Commission (Austrade) to provide management services at overseas posts.

The service level agreements (SLAs) remove the potential for duplicating administrative services and help to ensure the efficient whole-of-government use of resources overseas. 

SLAs cover management services, agency responsibilities, performance indicators and cost-recovery arrangements. Management

services include personnel, office, property and financial services.

In June 2012 the Department signed a three-year agreement with DFAT to provide services to DIBP staff at DFAT-managed posts. Following an extension to the original agreement, the agreement expired on 30 June 2017 and a new three-year agreement was signed with DFAT, commencing on 1 July 2017.

In August 2012 the Department signed an agreement with Austrade to provide services at Austrade-managed posts.

This agreement was also extended and subsequently expired on 30 June 2017. A new three-year agreement was signed with Austrade, commencing on 1 July 2017.

The Department pays DFAT and Austrade global service fees which are calculated on the cost of locally engaged staff salaries, the time staff spend delivering management services for the Department, and the number of departmental Australia-based or locally engaged staff at post. The Department’s total 2016-17 SLA costs were $7,706,294 (DFAT) and $907,506 (Austrade).

MANAGEMENT AND ACCOUNTABILITY 223 222

Ethnic Liaison Officers and community engagement

The Department’s Ethnic Liaison Officers (ELOs) engage with communities around Australia to discuss departmental policies and programmes and to explore community sentiment and dynamics. Throughout 2016−17, ELOs were the trusted connection between

communities and the Department discussing migration, status resolution, border clearance procedures, citizenship, social cohesion and whole-of-government priorities such as countering violent extremism. Community engagement also occurred through

events such as Refugee Week 2016, information sessions for pilgrims travelling for Hajj, Australia’s response to the Syrian and Iraqi humanitarian crisis, and regional director morning teas.

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HUMAN RESOURCES MANAGEMENT

Workforce profile

At 30 June 2017 the Department’s workforce consisted of: • 13,086 ongoing and 671

non-ongoing staff, located in every state and territory and in more than 50 international locations • 83.1 per cent full-time,

13.7 per cent part-time and 3.3 per cent casual staff • 53.5 per cent female staff and 46.5 per

cent male staff • workers with an average age of 41.9.

In addition, there were 1,110 locally engaged staff, employed by DFAT in international locations.

For 2016-17, the voluntary separation rate of ongoing staff was 6.52 per cent and the external recruitment rate was 7.25 per cent.

Table 17 shows the staffing headcount by actual classification. Figure 8 shows the Senior Executive Service (SES) headcount by gender. Figure 9 shows the staffing headcount by location.

MANAGEMENT AND ACCOUNTABILITY 225 224

226

Table 17: Staffing headcount by actual classification

Actual classification 30 June 2016 30 June 2017

Non- Non-

Ongoing ongoing Total Ongoing ongoing Total

Graduate/Trainee/Cadet 162 - 162 174 - 174

APS Level 1 16 - 16 22 - 22

APS Level 2 43 297 340 32 447 479

APS Level 3 2,607 219 2,826 2,573 122 2,695

APS Level 4 1,787 85 1,872 1,706 32 1,738

APS Level 5 2,792 42 2,834 2,748 15 2,763

APS Level 6 2,884 84 2,968 2,883 44 2,927

Executive Level 1 2,256 25 2,281 2,065 8 2,073

Executive Level 2 752 4 756 715 2 717

SES Band 1 137 1 138 127 - 127

SES Band 2 40 - 40 36 - 36

SES Band 3 8 - 8 5 1 6

Total 13,484 757 14,241 13,087 671 13,757

Note: Figures are actual classification and figures include staff acting at different classifications on 30 June 2016 and 30 June 2017. Figures include staff on leave. Figures exclude the Secretary and ABF Commissioner, locally engaged staff and staff on secondment.

MANAGEMENT AND ACCOUNTABILITY 227 226

226

AUSTRALIA

ACT

NSW

VIC

QLD

WA66

SA

NT

TAS

180

1,022 1,296

590

2,766

5,344

2,160

162

85

152

1,110

OVERSEAS

Other67

Australia-based

Locally-engaged staff68

Figure 8: Senior Executive Service headcount by gender

30 JUNE 2016

BAND 1 76 male 62 female

BAND 2 28 male 12 female

BAND 3 3 male 5 female

male female

30 JUNE 2017

BAND 1 64 male 63 female

BAND 2 27 male 10 female

BAND 3 1 male 5 female

MANAGEMENT AND ACCOUNTABILITY 227 226

Figure 9: Staffing headcount by location 30 June 2017

66 Figures include staff located on Christmas Island. 67 Figure includes 27 staff in Nauru and 25 in Manus, 23 staff are Airline Liaison Officers, eight staff in PNG as part of the whole-of

-government Strongim Gavman Programme and two staff on short term missions located overseas. 68 Locally engaged staff are employed by DFAT on behalf of DIBP.

Workforce planning

During 2016−17 the Department developed workforce plans focused on short−term objectives for each division and continued to develop group strategic plans that have a three-to four-year focus. Workforce planning helps business areas

to achieve their objectives by identifying specific initiatives to mitigate future workforce impacts and risks.

Workforce initiatives are implemented by business areas with support from the People Division. To support

initiatives the Department is implementing a people business partner model. People business partners provide high quality client-focused services by linking business objectives to people services and programmes.

People management and development

Increasing demands and changing external factors require the Department’s workforce to be highly skilled, engaged and focused on protecting the border and managing the movement of people and goods across it. Continuing investment in workforce planning, learning and development, and in integrated human resource policies, are positioning the workforce to adapt to new operating models and technologies to meet changing demands.

Key initiatives in 2016−17 to build a high performing workforce included: • completing the Executive

Level (EL) Review and establishing talent management advisory committees that actively manage the development of the Department’s EL employees • delivering leadership

development programmes • ongoing review and modification of the five

work specialisations − border operations, policy,

client services, intelligence and enabling/support − to align workforce competencies and capabilities with changing workforce requirements • standardising work health

and safety practices across the Department • designing and implementing a new

operating model for human resource functions to better deliver the services that business areas need.

MANAGEMENT AND ACCOUNTABILITY 229 228

People Strategy 2020

The People Strategy 2020 sets out the Department’s approach to ensuring our workforce is professional, adaptable, capable and diverse. Key initiatives in the strategy focus on:

• Department-wide workforce planning capability • performance evaluations

to support accountability • support for professional development

• the health and wellbeing of employees • clear alignment of operational and workplace

structures to support the delivery of services.

Talent management

The Department has an integrated career management framework that supports workforce performance and provides opportunities to enhance career growth and increase staff engagement. In conjunction with workforce planning and recruitment initiatives, the framework ensures the Department can attract and manage the leadership and other capabilities it requires.

During 2016−17 the Department invested heavily in the leadership capability

of its EL employees, in recognition of their critical role in leading teams to successfully deliver the Department’s ongoing reform agenda. This has ensured that all EL roles are appropriately classified and that staff at these levels have the leadership capabilities to be effective in their roles now and in future. The EL Review has allowed EL staff to understand their strengths, potential and areas for development, and make better informed career decisions.

In 2016−17, the Department established talent management advisory committees at both group and divisional levels. With SES membership, these fora help to ensure that all EL staff have targeted opportunities to develop, fulfil their potential and demonstrate leadership. Continued focus on shaping the capability of the Department’s EL staff is important to achieving the culture to which the Department aspires and to improving productivity and performance.

MANAGEMENT AND ACCOUNTABILITY 229 228

Training and development

The Leadership Strategic Plan 2016-2020 was implemented developing leaders who will continue, including: during the r

eporting can build high-performing • development programmes period. It articulates the teams in a challenging for the APS and EL cohorts

Department’s leadership immigration and border • coaching for leadership philosophy and desired protection policy and workshops

characteristics, including operating environment. The • EL conferences: ‘Lead. individual and collective EL Review has enabled the Empower. Achieve’ capabilities, culture, Department to understand • Leadership in quantity and diversity. the capabilities and skills Action seminars.

of the EL cohort. This

Initiatives were taken to information is being used to During 2016−17, 1901 staff build the profile of future develop the overall leadership took part in leadership leaders. This reflected the skills of EL officers. programmes.

Department’s focus on Leader ship programmes

SES development strategy

Through the Leadership Strategic Plan, the Department continues to develop the leadership skills required to achieve its mission and vision. The plan draws from, and is underpinned by the APS Values, APS work level standards, the APS Integrated Leadership System and the DIBP values and behaviours. It

recognises the importance of both individual and collective SES capabilities and accountabilities.

The Secretary and Commissioner’s Talent Management Advisory Committee provides advice and strategic direction to develop the SES cohort. In addition to internal professional development,

external development opportunities continue to be offered through secondments and organisations such as the Australian Public Service Commission, the Australian and New Zealand School of Government, the Australian Institute of Police Management and the National Security College.

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Workforce diversity

The Department values and is committed to building the diversity of its workforce, reflecting the community which the Department serves - a workforce that fosters inclusiveness and embraces the diversity of its people, including differences in cultural background, race, ethnicity, disability, age, gender identity and sexual orientation.

The Department’s Statement of Commitment recognises the contribution of all genders and the need to ensure equality of opportunities for leadership,

career development, flexible work and equal participation. Departmental diversity networks include the Staff Advancing Gender Equality (SAGE) Network, two LGBTI networks (one staff-led and an online forum), a Disability Support Network, an Indigenous Employees Network and a Reconciliation Ambassadors Network. These networks provide opportunities for staff to meet, share experiences and discuss development opportunities. They also help to shape departmental initiatives supporting diversity.

The Department’s Gender Equality Action Plan 2017-2069 focuses on four priority areas: • driving a supportive

and enabling culture • ensuring gender equality in leadership • embedding gender equality

in employment practices • promoting flexible work arrangements for all staff.

Each focus area has goals, actions and targets to drive change and measure our progress towards achieving gender equality outcomes over the term of the action plan.

Disability reporting mechanisms

In 2016−17, the Department developed and implemented the Disability Action Plan 2016−2070, focused on developing and supporting an environment of trust and openness, and developing managers’ confidence to improve the way in which we attract, retain and support staff and leaders

with a disability. As a result, the Departmen t has raised

its profile as a disability-friendly employer.

The Department collaborated with Hewlett Packard Enterprises in the Dandelion Program, which provides skilled employment opportunities to people on

the autism spectrum. These tr ainees started work in the

Information Communication and Technology (ICT) Division to test software. The programme is proving to be beneficial to both participants and the Department. It highlights the value we place on our diverse workforce.

MANAGEMENT AND ACCOUNTABILITY 231 230

69 www.border.gov.au/about/careers-recruitment/working-with-us/gender-equality-action-plan-2017-20 70 www.border.gov.au/AccessandAccountability/Documents/Plans/dap-2016-20.pdf

Targeted diversity recruitment

The Department again participated in the Department of Human Services’ Indigenous Apprenticeships Programme. This national entry-level programme provides Indigenous Australians with employment in the APS while they study for a

Certificate IV in Government qualification and undertake on-the-job training.

The Department also recruited Indigenous staff under the affirmative action provisions. As well as general recruitment, affirmative measures were

applied throughout ABF recruitment programmes.

The APS RecruitAbility scheme was applied to all recruitment exercises to attract and engage people with a disability to the Department.

Significant days

The Department has diversity, disability and Indigenous champions as well as dedicated teams that manage and promote an annual programme of diversity and inclusion events, such as

NAIDOC Week, National Reconciliation Week, International Women’s Day, Harmony Day, Wear It Purple Day, National Carers Week, White Ribbon Day and International Day of People with Disability.

MANAGEMENT AND ACCOUNTABILITY 233 232

Employee entitlements

Enterprise Agreement The Department’s 2011-14 Enterprise Agreement (EA) nominally expired on 30 June 2014. Negotiations for a new EA were ongoing at the start of the 2016-17 financial year.

On 5 October 2016 the Fair Work Commission (FWC) found that Protected Industrial Action (PIA) was posing an unacceptable risk to the safety and security of the Australian community and terminated further PIA.

A proposed EA, developed before the FWC decision to terminate PIA, was put to a staff ballot between 31 October 2016 and 7 November 2016. The ballot was unsuccessful.

The terms and conditions for all non-SES staff will now be determined through arbitration before a Full Bench of the FWC. It will make a workplace determination

for the Department that will operate as an EA.

Until a workplace determination takes effect, the terms and conditions of employment contained in the Department of Immigration and Citizenship Enterprise Agreement 2011−2014 and determinations made under section 24 of the Public Service Act 1999 (PS Act) will continue to apply.

Salary ranges Table 18 shows the Department’s salary range by classification level. Classifications such as Medical Officers, Public Affairs Officers and Legal Officers have been reported under the relevant APS classification in accordance with the Public Service Classification Rules 2000. While most employees receive a salary that is set by the EA, there are exceptions where higher salaries have been paid as a result of the

machinery of government change whereby former Australian Customs and Border Protection Service (ACBPS) employees were on higher salaries before their transfer to the Department on 1 July 2015.

Individual flexibility arrangements (IFAs) may also have been used to attract and retain specialist skills sets where paying additional remuneration, over and above what is available under the EA salary range, is necessary. Appendix D in this report provides a breakdown of salary ranges within each level as prescribed by the EA.

The salary ranges of the Secretary and the Commissioner are not included. As statutory appointments, their remuneration arrangements are publicly available on the Remuneration Tribunal website71.

MANAGEMENT AND ACCOUNTABILITY 233 232

71 www.remtribunal.gov.au/offices/secretaries

Table 18: Salary ranges for staff at 30 June 2017

Classification Range of salaries

ICT Apprentices $42,419-$43,825

Trainee (APS) (Technical) $42,856-$42,865

APS Level 1 $43,825-$47,004

APS Level 2 $47,424-$53,353

APS Level 3 $53,937-$68,534

APS Level 4 $60,452-$72,022

APS Level 5 $67,638-$83,722

APS Level 6 $74,321-$118,000

Executive Level 1 $92,801-$140,760

Executive Level 2 $109,959-$258,506

SES Band 1 $165,548-$214,780

SES Band 2/SES Band 3 $216,487-$331,600

Senior Executive remuneration Senior Executive Service (SES) remuneration is outlined in the SES remuneration and performance management policy, which provides

an efficient, transparent and effective way of administering SES remuneration and managing performance. Table 18 above shows the salary ranges of SES employees within the Department.

All SES employees are provided with a comprehensive individual determination under section 24(1) of the Public Service Act 1999, which outlines their terms and conditions of employment.

MANAGEMENT AND ACCOUNTABILITY 235 234

Individual flexibility arrangements and workplace agreements

Table 19: Number of departmental employees on subsection 24 (1) Determinations or IFAs at 30 June 2017

Classification Employees on s. 24(1) Employees on IFAs Total

APS Level 3 3 3

APS Level 4 47 47

APS Level 5 72 72

APS Level 6 139 139

Executive Level 1 102 102

Executive Level 2 1 56 57

SES 133 - 133

Total 134 419 553

Determinations On 25 June 2015 a determination under subsection 24(3) of the Public Service Act 1999 was made by the Hon Christian Porter MP, Parliamentary Secretary to the Prime Minister, in relation to all non-SES seagoing staff in the Marine Unit who were to be moved to the Department on 1 July 2015. The determination preserved for these staff all terms and conditions of employment contained in the ACBPS Enterprise Agreement 2011-2014. At 30 June 2017, 538 non-

SES staff were covered under the determination. This transitional arrangement enables the Marine Unit to operate effectively until the new workplace determination for the integrated Department is in place.

On 26 June 2015 the Secretary, Mr Michael Pezzullo, made DIBP Determination 2015/01 under subsection 24(1) of the Public Service Act 1999 in relation to all non-SES ACBPS staff who were moved to the Department on 1 July 2015.

This determination preserved certain conditions from the ACBPS Enterprise Agreement 2011-2014, such as working hours and specific allowances and benefits, for former ACBPS staff, to ensure operations during the transition to the integrated Department. As at 30 June 2017, 4292 non-SES staff were covered under this determination.

To further support the Department’s operations, DIBP Determination 2015/02 was made in relation to all non-SES staff employed as

MANAGEMENT AND ACCOUNTABILITY 235 234

ABF recruits after 1 July 2015. This determination allocated a classification of Trainee (APS) (Technical) to ABF recruits. At 30 June 2017, 125 non-SES staff were covered under this determination.

A further five subsection 24(1) determinations were made to support the subsection 24(3) determination for non-SES seagoing Marine Unit staff: • DIBP Determination

2015/04 Marine Cooks. This determination allocates the APS 4 classification and provides the relevant APS 4 salary range for marine cooks. At 30 June 2017, this determination covered 20 non-SES staff. • DIBP Determination

2016/01 Marine Communication and Technical Officers. This

determination allocates the APS 4 classification and provides the relevant APS 4 salary ranges for marine communication and technical officers. At 30 June 2017, this determination covered 16 non-SES staff. • DIBP Determination

2016/03 Revocation− Marine Unit Engineers Attraction and Retention Payment. This determination revoked DIBP Determination 2015/03. It took effect on 3 November 2016. • DIBP Determination

2017/01 Marine Unit Engineers Attraction and Retention Payment-Ocean Shield. This determination provides an attraction and retention payment to engineers on ABFC Ocean Shield. At 30 June 2017, this determination covered 12 non-SES staff.

All of the above DIBP determinations are transitional arrangements that, unless revoked earlier, will apply until the new workplace determination for the integrated Department is in place.

Performance pay Performance pay is not available to staff under the EA or to those staff covered by DIBP Determination 2015/01. Performance pay is also not available to SES staff.

The subsection 24(3) determination for non-SES seagoing Marine Unit staff provides performance pay to those at the top of their salary range and who receive a rating of ‘performed above agreed requirements’ or ‘met agreed requirements’ through the performance management system.

MANAGEMENT AND ACCOUNTABILITY 237 236

Table 20: Performance pay outcomes 2016-17 (Australian Customs and Border Protection Service Enterprise Agreement 2011-2014)

ASP3 APS4 APS5 APS6 EL1 Total

Number of officers receiving bonus 122 2 55 22 17 218

Total amount paid ($) $151,158 $2,478 $79,212 $36,262 $31,741 $300,851

Average bonus amount ($) $1,239 $1,239 $1,440 $1,648 $1,867 $1,380

Minimum bonus paid ($) $1,239 $1,239 $ 1,239 $1,456 $1,738 N/A

Maximum bonus paid ($) $1,239 $1,239 $1,456 $1,738 $2,177 N/A

Non-salary benefits The range of non-salary benefits provided to staff under the EA and individual employment arrangements includes: • flexible working

arrangements, including flex time, flexible time-off arrangements, variable working hours, part-time employment, job-sharing and home-based work • flexible leave such as

adoption/foster leave, annual leave at both full and half pay, ceremonial leave, community

service volunteer leave, compassionate or bereavement leave, defence reserve leave, maternity leave, NAIDOC leave, parental leave, personal leave, purchased leave and war service sick leave • salary packaging • allowances, such as

community language allowance, first aid allowance, irregular maritime arrivals allowance, restrictions allowance and volunteer allowance.

DIBP Determination 2015/01 and the section 24(3) determination for non-SES seagoing Marine Unit staff maintained the following existing non-salary benefits for former ACBPS EL 2 staff who were in receipt of the benefit on 30 June 2015: • motor vehicle allowance • car parking allowance • home garaging.

These determinations also maintained airline lounge memberships and additional days off to former ACBPS EL 1 and EL 2 staff.

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WORK HEALTH AND SAFETY

Initiatives and outcomes

The Department implements and maintains effective work health and safety (WHS) strategies and systems

that promote continuous WHS improvement and a positive safety culture.

Key health and safety initiatives introduced during 2016−17

The Department reviewed and implemented the following key initiatives in work, health and safety and rehabilitation: • new Work Health and

Safety Governance Arrangements that set out the governance framework to manage health and safety across the Department. They also provide guidance on roles and responsibilities, and the systems that are in place to manage health and safety matters • a Due Diligence Framework

outlining the duties of departmental officers in managing their obligations under the Work Health

and Safety Act 2011 (Cth) • an independent assessment to identify

psychological risks for staff, review current strategies and recommend mitigating actions to reduce the risk of psychosocial injuries in the workplace. Implementing recommendations from this work will begin in September 2017 • the launch of updated

and improved intranet information about WHS and support services available to workers • implementation of

systemic improvements as a result of the

2016 rehabilitation management systems audit. They include injury management guidelines to standardise practices in early intervention, rehabilitation and return to work • joining other Australian

Government agencies in a national shared services panel for workplace rehabilitation providers. The terms of the arrangement will enable improved measurement of provider performance (quality of service delivery, costs and rehabilitation outcomes) in line with legislative requirements.

MANAGEMENT AND ACCOUNTABILITY 239 238

Outcomes of key health and safety initiatives

Initiatives undertaken during 2016-17 to increase WHS awareness and improve case management performance have contributed to lower numbers of workers’

compensation claims and a reduced workers’ compensation premium.

The Department’s workers’ compensation premium for

2017-18, at $26.14 million, is the lowest it has been for five years, down 19.5 per cent when compared with its 2016-17 premium.

Table 21: WHS outcomes

Claims experience72

Claims filed

2014-2015

258

2015-2016

258

2016-2017

196

Claims accepted 208 205 140

72 Figures are based on the number of claims with injuries occurring in each year.

MANAGEMENT AND ACCOUNTABILITY 239 238

Mechanism of injury

The Department identifies actions, events and situations that can cause serious injury and disease. Mechanism-

of-injury descriptors are based on a national classification system. Table 22 shows injury claims

by mechanism of injury accepted by Comcare.

Table 22: Three-year summary of mechanism of injury for accepted claims

Accepted claims73 2014-15 2015-16 2016−17

Falls, trips and slips 49 49 31

Hitting objects 5 17 5

Being hit by moving objects 18 19 16

Sound and pressure 2 1 0

Body stressing 91 82 43

Heat, electricity and other environmental 3 1 0

Chemicals and other substances 1 1 1

Biological factors 5 1 1

Mental stress 21 19 10

Hazard 0 0 0

Vehicle accidents and other 5 4 1

Other or unspecified 8 9 0

Total 208 203 108

MANAGEMENT AND ACCOUNTABILITY 241 240

73 Figures include Australian-based staff overseas but exclude locally engaged staff. Figures may increase over time as workers’ compensation claims continue to be lodged and accepted by Comcare for injuries or illnesses sustained in the given year. Figures analysed as at 24 May 2017 as the data for the Annual Report is extracted from Comcare Customer Information Systems database. Data is released through the system with a three-month lag.

Notifiable incidents

Table 23: Incidents notified to Comcare under sections 35, 36 and 37 of the Work Health and Safety Act 2011

Notifiable incident classification 2014-15 2015-16 2016-17

Death 674 7 1

Serious injury/illness 586 100 34

Dangerous incident 70 44 25

Total 662 151 60

Investigations

The Department liaises with WHS matters of interest The Department had three Comcare on all regulatory to both organisations. improvement notices and cooperative compliance Comcare conducted 51 issued under Part 10 of matters. The Department and investigations against the the Work Health and Comcare meet each month Department between 1 July Safety Act (Cth) 2011. to work collaboratively on 2016 and 30 June 2017.

Unscheduled absence management

The Department actively manages employee months, about half of the unscheduled absences taken attendance to achieve an Department’s workforce by employees in their team appropriate balance between took fewer than 10 days and to identify and manage supporting employees of unscheduled absence patterns of leave requiring who are genuinely ill or and almost a third took intervention. Employees with required to care for a family fewer than five days. serious illnesses received member, and managing combined support from

instances where leave The Department provided their local managers and patterns of individuals all employees with access professional support from the are not appropriate. to programmes designed People Division to help them to improve general health to recover and return to work.

Most employees are not and wellbeing. In addition, high users of unscheduled managers were provided

leave. Over the past 12 with new tools to review

74 This figure includes two Nauruan nationals.

MANAGEMENT AND ACCOUNTABILITY 241 240

PROCUREMENT, SERVICES, ASSETS AND GRANTS

Purchasing and procurement

The Department based its purchasing and procurement policies on the PGPA Act and the Commonwealth Procurement Rules (CPRs).

Corporate Group provided specialist advice and assistance to all departmental areas engaged in procurement and contract management through: • self-service, including

streamlined information, guidance and tools supported by a helpdesk function • dedicated procurement

staff to provide appropriate support and advice for approaches to market • developing and maintaining policy documentation and guidance • centralised advice to high value/high risk procurements • coordinating external procurement reporting • legal and probity advice.

Contract information is published on AusTender in accordance with the requirements of the CPRs and other relevant guidelines. In addition to the information published on AusTender, the Department has an in-house contract reporting system that includes procurement and contract documentation. Quality assurance measures and assurance processes in the system are used to maintain the accuracy and completeness of procurement-related information.

Australian National Audit Office (ANAO) access provisions The Department’s standard contract templates include provisions allowing the ANAO to access a contractor’s premises.

Exempt contracts The Department did not have any contracts with a value of $10,000 or more (inclusive of GST) or any standing offers that had been exempted by the Secretary from being published on AusTender on the basis that they would disclose exempt matters under the Freedom of Information Act 1982.

Supporting small and medium enterprises The Department supports small business participation in the Australian Government procurement market. Small and medium enterprises (SME) and small enterprise participation statistics are available on the Department of Finance’s website.75

75 www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts/

MANAGEMENT AND ACCOUNTABILITY 243 242

The Department recognises the importance of ensuring that small businesses are paid on time. The Department’s practice complies with the supplier pay-on-time or pay interest policy that is available on the Department of Finance website.76

The Department’s procurement practices to support SMEs were consistent with paragraph 5.4 of the CPRs.

For example, initiatives and practices by the Department in 2016-17 that demonstrated this commitment were: • the Commonwealth

Contracting Suite for low-risk procurements valued under $200,000; • Australian industry participation plans in whole-of-government procurement where applicable

• coordination of the Indigenous Procurement Policy • the small business

engagement principles (outlined in the Government’s Industry Innovation and Competitiveness Agenda), such as communicating in clear, simple language and presenting information in an accessible format • electronic systems or

other processes used to facilitate on-time payment performance, including the use of payment cards.

Consultancy services expenditure The Department’s policy for selecting and engaging consultants was based on the core principle of value for money and conducted in accordance with the CPRs.

In 2016-17, the Department entered into 115 new consultancy contracts as reflected on AusTender. Total actual expenditure against these contracts was $23.84 million (inclusive of GST). In addition, 53 ongoing consultancy contracts which were previously reported on AusTender remained active during 2016-17 and incurred total actual expenditure of $9.11 million (inclusive of GST) during the year.

Information on the value of contracts and consultancies is available on the AusTender website.77

76 www.finance.gov.au/resource-management/spending/pay-on-time-policy 77 www.tenders.gov.au

MANAGEMENT AND ACCOUNTABILITY 243 242

Advertising and market research expenditure

During 2016-17, the Department conducted the following advertising campaign: • Anti-People Smuggling

Communication Campaign

The advertising and market research expenditure

is outlined in Table 24. Further information on the advertising campaign is available at www.border. gov.au. Chief Executive Certification for Government advertising campaigns and in reports on Campaign advertising by Australian

Government Departments and Agencies prepared annually by the Department of Finance. Those reports are available at www.finance.gov. au/advertising/index.html.

Table 24: Advertising and market research expenditure

Media advertising and market research Total amount paid

against contract (GST exclusive)

Total amount paid against contract (GST inclusive)

Market research organisations

Whereto Research Based Consulting $91,886 $101,074

Essence Communications Trust $279,273 $307,200

McNair Ingenuity Research Pty Ltd $152,328 $167,561

Totala $523,486 $575,835

Media advertising organisations

Dentsu Mitchell Media Australia Pty Ltd $2,221,916 $2,194,046

Totala $2,221,916 $2,194,046

Advertising agencies78

STATT Consulting Limited $5,830,674 $5,830,674

Ensemble $70,725 $77,798

Expert Opinion Communications $53,144 $53,144

Lapis Middle East and Africa Fz-Llc $399,367 $399,367

Purplewood $94,757 $94,757

Tal Group Thompson Associates $1,409,243 $1,409,243

The International Organisation for Migration Vietnam $330,330 $330,330

Totala $8,188,240 $8,195,313

MANAGEMENT AND ACCOUNTABILITY 245 244

a. The figures r eported are rounded up to the nearest dollar. 78 The vendors listed under the advertising agencies category are not subject to GST, with the exception of Ensemble.

Legal services expenditure

Table 25 outlines the legal services expenditure by the Department for 2016-17, in compliance with paragraph 11.1( ba) of the Legal Services Directions 2017.

Table 25: Legal services expenditure

Description 2016-17 cost (excluding GST)

Total legal services expenditure $79,128,991

Total external legal services expenditure $46,913,671

External expenditure on solicitors79 $40,180,665

External expenditure on counsel80 $4,971,508

Number of matters in which male counsel briefed—792

Estimated value of briefs to male counsel $3,985,371

Number of matters in which female counsel briefed—182

Estimated value of briefs to female counsel $ 986,137

Disbursements on external legal services $1,761,497

Total internal legal services expenditure $32,215,320

Employees $27,606,852

Overheads (for example, office stores and stationery, training and travel, property and information technology related costs)81

$4,608,468

79 As the Department has en tered into a fixed fee arrangement for the payment of some litigation matters, this figure will also include some expenditure on counsel and disbursements that cannot be separately identified. 80 Statistics on counsel briefs relate to finalised litigation matters only. 81 Overheads—indirect property and IT costs are included. This amount is reported in accordance

with Offic e of Legal Services Coordination Guidance Note 8.

MANAGEMENT AND ACCOUNTABILITY 245 244

Assets management

The Department managed $2.8 billion of non-financial assets in 2016−17. The Department’s main asset classes are land and buildings, leasehold improvements, vessels, plant and equipment and intangible assets (software) which include: • $1.45 billion in

administered property, plant and equipment assets held to support the care and management of detainees, including IMAs in immigration detention • $1.27 billion in

departmental assets, including $0.51 billion in computer software supporting the Department’s operations and $0.37 billion in vessels that support the ABF, but excludes inventories held and other non-financial assets.

The Department’s governance framework for managing assets to enable the accurate reporting of asset balances in the financial statements encompasses: • asset investment − through

setting an annual capital plan that reflects both Government priorities and ongoing business requirements, which is regularly monitored to ensure that planned expenditure reflects the Department’s business requirements • monitoring existing assets

- by undertaking an annual stocktake and impairment review of non-current assets that is used to:

- update and verify the accuracy of asset records

- review the condition and utility of assets - assess expected useful lives of assets.

• fair value measurement - an annual fair-value assessment of assets, both capitalised and assets under construction, was undertaken by an external provider to ensure asset balances reported are reasonable • maintenance - property,

plant and equipment assets, including those leased under contract from various service providers, are maintained through specific maintenance programmes.

Additional information on the value, acquisition and disposal of assets is available in the 2016-17 financial statements in Part 3 of this Annual Report.

MANAGEMENT AND ACCOUNTABILITY 247 246

Grants programmes

Information on grants awarded by the Department during the period 1 July 2016 to 30 June 2017 is available on the Department’s website.82All grants awarded were consistent with the Commonwealth Grant Rules and Guidelines, which is available on the Department of Finance’s website.83

82 www.border.gov.au/about/reports-publications/reports/corporate/grants 83 www.finance.gov.au/resource-management/grants/

MANAGEMENT AND ACCOUNTABILITY 247 246

ECOLOGICALLY SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE

Improvement and sustainability initiatives

National environmental policy Under section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), Commonwealth organisations have a statutory requirement to report on their environmental performance and how they accord with, and advance the principles of, ecologically sustainable development. The following information reports on our environmental performance in accordance with these requirements.

The national environmental policy, endorsed by the previous departmental Secretary in 2009, has been the foundation for environmental stewardship within departmental offices. It sets out the level of environmental responsibility and performance that the Department expects.

Under this policy, the Department undertook to: • review and improve its environmental

performance by setting objectives and targets appropriate to the nature, scale and impact of its operations • ensure the use of

processes, practices, techniques, materials, products, services and/or energy to avoid, reduce or control the creation, emission or discharge of any type of pollutant or waste in order to reduce adverse environmental impacts • comply with applicable

Australian Government and state and territory government environmental legislation, regulations, policies, initiatives and other requirements that relate to the Department’s environmental aspects.

Environmental management systems The Department employed an environmental management system (EMS) to help meet its environmental policy objectives. The EMS was a strategic tool to manage the impact of the Department’s activities on the environment. It also provided a structured approach to daily operations in helping to plan and implement environmental protection measures.

The development of the EMS was based on international standard AS/NZS ISO 14001.

Green initiatives The Department undertook several environmental initiatives in 2016-17, including: • promoting and

participating in Earth Hour

MANAGEMENT AND ACCOUNTABILITY 249 248

• continued participation in mobile phone recycling in its National Office in Belconnen, ACT • recycling used printer

cartridges for multi-function devices • building management committee meetings

(green lease schedule [GLS] sites only) to allow for effective management of energy consumption • a review of server room

temperature set points at GLS sites to minimise energy consumption • lighting assessment for new lease term at 299 Adelaide St, Brisbane • review and adjustment of light control sensor times as issues were identified for some GLS sites • beginning staff awareness sessions across a number of sites about the use of personal electronic devices to reduce energy consumption

• investigating opportunities to invest in solar power for long−term lease sites • increasing the ratio of

fuel-efficient vehicles in the Department and making four-cylinder vehicles the default choice for leased fleet vehicles wherever practicable • setting a benchmark

for the selection of fleet vehicles, in consideration of the Australian Government’s Green Vehicle Guide.

Green lease schedule management The Department supported and complied with the green lease schedules, which are key Government policy requirements. In the reporting period, Jones Lang LaSalle (JLL) managed the 13 GLS departmental sites. Of these, seven met the target energy rating, two were a half-star below

target and the remaining sites had ratings in progress.

NABERS The National Australian Built Environment Rating System (NABERS) measures a building ’s environmental performance during operation, in particular the rating of its measured operational impact on such factors as energy, water, waste and indoor environment. The NABERS rating has been chosen as the performance benchmark for GLSs and the mandatory Commercial Building Disclosure Program. These environmental indicators and the associated measurement techniques have been subject to extensive research and deliberation, drawing on international and local expertise. More information can be found at the NABERS website.84

84 www.nabers.com.au

MANAGEMENT AND ACCOUNTABILITY 249 248

Information and communication technology sustainability initiatives The Department continued to transform its existing ICT infrastructure by introducing new energy-efficient blade server infrastructure at most major locations, and consolidating former ACBPS and DIBP infrastructure at a number of airport locations.

Overall, the energy consumption in the Canberra Data Centres (CDC) sites in Hume and Fyshwick has increased. This was due to ICT equipment growth as infrastructure continued to be relocated from Department-owned data centres.

Despite this increase, in 2016−17 the Department continued to improve on the whole-of-government July 2015 target for power usage effectiveness (PUE), which is 1.7. The actual PUE for the ACT sites were: • Hume centre - PUE = 1.49 • Fyshwick centre

- PUE = 1.38

Both ACT facilities used the latest energy-efficient technologies, with the Fyshwick facility using free cooling by circulating cold Canberra air to supplement the data centre cooling systems.

For the first time, energy use at the Department-owned data centre in Belconnen decreased to less than 50 per cent of the total building tenancy energy usage. The ICT energy load has fallen to 37 per cent of available capacity due to the Department’s ongoing data centre decommissioning activities, server virtualisation and infrastructure relocation to the CDC facilities. The Department expects energy cost savings to continue.

In December 2016 the Department’s critical mainframe systems were transitioned from the CSC (Computer Sciences Corporation) managed data centres in Clayton (Victoria) and Pyrmont (NSW) to the IBM data

centres in Baulkham Hills (NSW) and Ultimo (NSW). This has resulted in lower overall energy consumption by mainframe-related equipment operated on behalf of the Department.

The Department continued to meet whole-of-government requirements for an after-hours shut-down of desktops, with energy use equivalent to being powered off. In the last quarter of the reporting period, the Department began the rollout of new desktop PCs to coincide with the enterprise-wide upgrade to the Windows 10 operating environment. These new PCs consume around one third less energy, per desktop, than the previous standard desktop, delivering a 31 per cent energy efficient dividend. The rollout of the new desktop PCs will continue in 2017−18. The ongoing reduction in end-user IT energy usage and related heat generation in office tenancies can be expected to reduce the load on building cooling systems and tenancy energy use.

MANAGEMENT AND ACCOUNTABILITY 251 250

Energy performance The Energy Efficiency in Government Operations (EEGO) policy aims to reduce energy consumption by government operations, with particular emphasis on building energy efficiency.

A key EEGO objective was for government office buildings in all portfolios to achieve an energy intensity target of 7500 megajoules per person per annum for tenant light and power by June 2012.

Due to the merger of ACBPS and DIBP in July 2015, this is the second year reporting on consolidated energy performance. However, comparative performance is available for the individual agencies in previous years.

Table 26: The Department’s energy performance against EEGO policy intensity target

EEGO policy intensity target 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Tenant light and power at 7,500 MJ pp/ 6,322 5,829 5,155 4,325 8,95886 7,896

pa85 by June 2012 - DIBP

ACBPS 11,532 12,864 12,075 13,069 n/a n/a

Heritage strategy The Department continued to manage its obligations under the Environmental Protection and Biodiversity Conservation Act 1999 to preserve and promote Commonwealth heritage sites. The Villawood Immigration Detention Facility (IDF) is the only departmental property included on the Commonwealth Heritage List.

A heritage precinct has been established on the northern boundary of the Villawood IDF, facing Miowera and Gurney Roads. A heritage precinct master plan ensures the continuing protection of the site’s remaining heritage values.

The precinct features key elements of the Villawood migrant hostel, two Nissen accommodation huts, the former dining room

(Saar hut) and the boilers from the original laundry. A qualified heritage specialist was engaged to complete the development of the precinct.

85 MJ pp/pa means ‘megajoules per average staff level per annum’. 86 Figure represents consolidated Department.

MANAGEMENT AND ACCOUNTABILITY 251 250

Appendices

PART 6

APPENDIX A: Years at a Glance

254

APPENDIX B: Correction of material errors

258

APPENDIX C: Report on financial performance

264

APPENDIX D: Salary and classification rates

272

APPENDIX E: Administration of the Office of the Migration Agents Registration Authority

276

APPENDIX F: Information Publication Scheme

279

PART 6: Appendices

APPENDix A: YEARS AT A GLANCE

Table 27: Years at a Glance

2014-15 2015-16 2016-17

Migration

Permanent Migration Programme and Child outcome 189,097 189,770 183,608

Skill stream places 127,774 128,550 123,567

Family stream places 61,085 57,400 56,220

Special Eligibility stream places 238 308 421

Child places delivered outside the managed Migration Programme - 3,512 3,400

Temporary visas granted 7.1 million 7.7 million 8.4 million

Visitor visas granted 4.3 million 4.8 million 5.3 million

Number of eVisas granted88 3.1 million 3.4 million 4.1 million

Student visas granted 299,540 310,845 343,035

Working holiday maker visas granted 226,812 214,583 211,011

Special Category (subclass 444) visas granted 1.8 million 1.9 million 1.9 million

Maritime Crew and Transit visas granted 320,521 345,873 352,394

Temporary Work (Skilled) (subclass 457) visas granted89 96,084 85,611 87,580

Temporary residents (other) visas granted90 119,817 130,807 145,100

88 Number of eVisas granted is a subset of visitor visas granted. 89 This metric is inclusive of independent e xecutives. 90 Includes temporary gr aduates, economic (excluding subclass 457) and non-economic.

APPENDICES 255 254

Table 27: Years at a Glance

2014-15 2015-16 2016-17

Refugee and humanitarian entry

Humanitarian Programme visas granted (2016-17 includes 8208 places from the 12,000 additional places for displaced Syrian and Iraqi refugees)

13,731 17,540 21,968

Number of Illegal Maritime Arrival legacy caseload applications finally determined (grants and refusals) 757 2,165 8,000

Citizenship

Number of people conferred with Australian citizenship 136,572 133,126 137,750

Number of people whose applications for Australian citizenship by conferral, descent and resumption were approved 167,624 148,502 146,405

Border management

International air and sea travellers processed (including crew) 36.8 million 40.7 million 43.7 million

Ship arrivals and departures from Australian ports 35,732 35,912 36,654

Immigration clearances refused at airports and seaports 3,721 3,258 3,966

SmartGate clearances 6.8 million 15.0 million 24.2 million

Sea cargo consignments inspected 101,273 96,637 84,674

Air cargo consignments inspected 2.0 million 2.0 million 2.0 million

International mail items inspected 55.5 million 57.3 million 58.5 million

Number of illicit drug detections at the border 32,880 37,961 43,973

Combined weight of major illicit drug detections at the border 7,309kg 5,076kg 7,085kg

APPENDICES 255 254

Table 27: Years at a Glance

2014-15 2015-16 2016-17

Total weight of illicit tobacco91 182.35

tonnes

146.78 tonnes

381.49 tonnes

Number of illegal firearm detections at the border 92 1,775 1,751 1,709

Detector dog supported detections (passenger and cargo) 1,594 1,355 1,974

Border protection

People smuggling ventures that reached Australia 1 0 0

Conducted patrols at seaports, wharves and waterfront environments and surrounding areas, including remote and coastal regions

7,798 4,727 3,614

Marine unit patrol days93 1,691 1,952 1,987

Compliance

Percentage of temporary entrants who maintained their lawful immigration status while in Australia 99 99 99

Location events of unlawful non-citizens94 17,021 15,177 15,885

Location events of illegal workers95 2,714 1,970 2,268

Illegal Worker Warning Notices (IWWNs) issued to employers of illegal workers96

666 424 396

Removals and assisted departures of non-citizens onshore and transferees from regional processing centres97 11,70585 14,708 14,660

Total number of visa cancellations98 57,863 62,071 57,161

Total number of non-humanitarian visa refusals 188,163 214,889 240,046

91 Figures for 2014-15 relate to sea cargo only, 2015-16 relate to cargo (air and sea) and international mail and 2016-17 rela te to cargo (air and sea), international mail and passenger streams. 92 Firearm statistics are referred to in terms of ‘undeclared detections’ rather than seizures. An imported firearm is considered

an ‘undeclared det

ection’ when it has been detected and identified by the Department as a prohibited or restricted firearm and where it has not been declared to the Department in accordance with the import requirements. 93 Figure excludes ABFCs Ocean Shield and Thaiyak. 94 Some non-citizens may ha ve been located more than once in any given programme year. Each location event is counted. 95 Historical figures for previous financial years were refreshed and updated on 6 July 2017. As a result, due to retrospective

data en

tries, systems corrections and improvements to methodologies data, figures may differ from those previously reported. 96 The figures include returns and r emovals of non-citizens from the Australian mainland and regional processing centres, including IMAs, IMA cr

ew, IFFs and border turnarounds.

97 This figure accounts f or total onshore compliance departures and excludes IMAs, IMA crew, IMA BVE, IFFs and other authorised arriv als 98 The figures include all onshore /offshore visa cancellations. A visa may be recorded as cancelled more than once. This can occur

when a visa is c

ancelled, and the cancellation is subsequently revoked or set aside (this may occur for a number of reasons, including further legal proceedings, and administrative or jurisdictional errors), and then the visa is cancelled again. Duplication may also occur.

APPENDICES 257 256

Table 27: Years at a Glance

2014-15 2015-16 2016-17

Detention

Illegal foreign fishers taken into immigration detention 25 192 192

People in Australian immigration detention (mainland) at 30 June99 3,202 2,200 1,815

Trade, customs and revenue

Import and export entries 5.0 million 5.1 million 5.2 million

Revenue collected from visa application charges, customs duty, import processing charges and passenger movement charges 13.9 billion 17.2 billion 17.7 billion

Client contact

Telephone calls to service centres (general enquiries and citizenship information lines) 1.1 million 1.2 million 1.2 million

Telephone interpreting services 1.3 million 1.1 million 1.1 million

Telephone calls to TIS National’s contact centre 1.4 million 1.2 million 1.2 million

Staff

Total staff at 30 June 2017 9,559100

5,181101

14,241 13,758102

99 Figure includes people in immigration detention under residence determinations. 100 Department of Immigr ation Annual Report 2014-15. 101 Australian Customs and Border Protection Services Annual Report 2014-15. 102 Figure excludes Secretary, ABF Commissioner and staff on secondment. Figures inclusive of staff on leave,

emplo

yees engaged locally and staff based both in Australia and overseas.

APPENDICES 257 256

APPENDix B: CORRECTION OF MATERIAL ERRORS

Correction of errors in the Department of Immigration and Border Protection Annual Report 2015-16.

Page 64 The number of temporary entrant visa applications that were decided within service standards was incorrectly reported at 88.8 per cent. The correct figure is 88.7 per cent.

Page 72 The number of refugee and humanitarian places was incorrectly reported as 13,764 (published in table 6 on page 72). The correct figure is 13,765.

Page 94 Under Part 4, Report on financial performance, non-cash items were excluded from reported budget figures and, as a result, it was not

possible to make an accurate comparison of budget versus actual by outcome. The correct budgeted amounts (including non-cash items) in Table 10, page 94 are as follows:

Budgeted administered expenses: • Outcome 1—replace $2,307,255 with $2,448,595

• Outcome 3—replace $0 with $13,500 • For total budgeted administered expenses,

replace $2,396,702 with $2,551,542

Budgeted departmental expenses: • Outcome 1—replace $1,753,455 with $1,903,495

• Outcome 2—replace $773,119 with $833,985 • Outcome 3—replace $112,342 with $130,820

• For total departmental expenses, replace $2,638,916 with $2,868,300 • For total budgeted

departmental and administered expenses, replace $5,035,618 with $5,419,842.

Pages 98-103 The Outcome financial resources summary for 2015-16, tables 12-14 from page 98, have also been restated to ensure that the comparison of budget versus actual by outcome and programme is more clearly stated. The tables have been restated to ensure that the budget versus actual split between administered and departmental expenses and cash, non-cash items is aligned. The revised tables are below:

APPENDICES 259 258

Table 28: Correction of material errors for Annual Report 2015-16: Outcome 1 financial resources summary for 2015-16 (Table 12 Page 98 Annual Report 2015-16)

Outcome 1: Protect Australia’s sovereignty, security and Budget Actual Variations safety by managing its border, including through managing 2015-16a expense 2015-16 the stay and departure of all non-citizens. $’000 2015-16 $’000

$’000

Programme 1.1: Border Enforcement

Departmental expenses: Departmental appropriationb 917,057 970,625 53,568

Expenses not requiring appropriation in the Budget yearc 94,561 123,425 28,864

Total expenses for Programme 1.1 1,011,618 1,094,050 82,432

Programme 1.2: Border Management

Administered expenses: Ordinary annual services 23,094 - -23,094

(Appropriation Act No. 1 and Bill No. 3)

Departmental expenses: Departmental appropriationb 225,185 235,007 9,822

Expenses not requiring appropriation in the Budget yearc 27,332 29,102 1,770

Total expenses for Programme 1.2 275,611 264,109 -11,502

Programme 1.3: Compliance and Detention

Administered expenses: Ordinary annual services 219,069 251,977 32,908

(Appropriation Act No. 1 and Bill No. 3)

Expenses not requiring appropriation in the Budget yearc 23,948 19,818 -4,130

Departmental expenses: Departmental  appropriationb 216,706 225,597 8,891

Expenses not requiring appropriation in the Budget yearc 11,451 21,407 9,956

Total expenses for Programme 1.3 471,174 518,799 47,625

Programme 1.4: IMA Onshore Management

Administered expenses: Ordinary annual services 1,026,174 792,697 -233,477

(Appropriation Act No. 1 and Bill No. 3)

Expenses not requiring appropriation in the Budget yearc 46,701 48,719 2,018

Departmental expenses: Departmental  appropriationb 335,902 234,379 -101,523

Expenses not requiring appropriation in the Budget yearc 15,863 19,056 3,193

Total expenses for Programme 1.4 (2015-16 structure) 1,424,640 1,094,851 -329,789

APPENDICES 259 258

Table 28: Correction of material errors for Annual Report 2015-16: Outcome 1 financial resources summary for 2015-16 (Table 12 Page 98 Annual Report 2015-16)

Programme 1.5: IMA Offshore Management

Administered expenses: Ordinary annual services 965,420 950,774 -14,646

(Appropriation Act No. 1 and Bill No. 3)

Expenses not requiring appropriation in the Budget yearc 70,691 72,154 1,463

Departmental expenses: Departmental  appropriationb 44,757 101,102 56,345

Expenses not requiring appropriation in the Budget yearc 76 5,481 5,405

Total expenses for Programme 1.5 1,080,944 1,129,511 48,567

Programme 1.6: Regional Cooperation

Administered expenses: Ordinary annual services 73,498 78,627 5,129

(Appropriation Act No. 1 and Bill No. 3)

Expenses not requiring appropriation in the Budget yearc - 347 347

Departmental expenses: Departmental  appropriationb 13,848 23,893 10,045

Expenses not requiring appropriation in the Budget yearc 757 1,218 461

Total expenses for Programme 1.6 88,103 104,085 15,982

Total expenses for Outcome 1 4,352,090 4,205,405 -146,685

Average staffing level (number) 8,244 8,429 185

a. Budget relates to the revised Budget estimates reported in 2015-16 PAES. b. Departmental appropria tion combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’. c. Expenses not requiring appropriation in the Budget year are made up of depreciation expense, amortisa

tion expense and cost recovery expense.

APPENDICES 261 260

Table 29: Correction of material errors for Annual Report 2015-16: Outcome 2 financial resources summary for 2015-16 (Table 13 Page 100 Annual Report 2015-16)

Outcome 2: Support a prosperous and inclusive society, and Budget Actual Variations advance Australia’s economic interests through the effective 2015-16a expense 2015-16 management of the visa and citizenship programmes and $’000 2015-16 $’000

provision of refugee and humanitarian assistance. $’000

Programme 2.1: Citizenship

Departmental expenses: Departmental appropriationb 61,388 75,765 14,377

Expenses not requiring appropriation in the Budget yearc 4,975 8,604 3,629

Total expenses for Programme 2.1 66,363 84,369 18,006

Programme 2.2: Migration

Departmental expenses: Departmental appropriationb 257,903 252,607 -5,296

Expenses not requiring appropriation in the Budget yearc 21,336 39,413 18,077

Total expenses for Programme 2.2 279,239 292,020 12,781

Programme 2.3: Visa

Administered expenses: Ordinary annual services - 25 25

(Appropriation Act No. 1 and Bill No. 3)

Expenses not requiring appropriation in the Budget yearc - 12,688 12,688

Departmental expenses: Departmental  appropriationb 358,530 347,745 -10,785

Expenses not requiring appropriation in the Budget yearc 31,396 55,239 23,843

Total expenses for Programme 2.3 389,926 415,697 25,771

Programme 2.4: Refugee and Humanitarian Assistance

Administered expenses: Ordinary annual services 89,447 64,356 -25,091

(Appropriation Act No. 1 and Bill No. 3)

Expenses not requiring appropriation in the Budget yearc - 1,162 1,162

Departmental expenses: Departmental  appropriationb 95,298 86,749 -8,549

Expenses not requiring appropriation in the Budget yearc 3,159 12,700 9,541

Total expenses for Programme 2.4 187,904 164,967 22,937

Total expenses for Outcome 2 923,432 957,053 -33,621

Average staffing level (number) 5,045 4,857 -188

a. Budget relates to the revised Budget estimates reported in 2015-16 PAES. b . Departmental appr opriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’.

c. Expenses not requiring appropriation in the Budget year are made up of depreciation expense, amortis ation expense and cost recovery expense.

APPENDICES 261 260

Table 30: Correction of material errors for Annual Report 2015-16: Outcome 3 financial resources summary for 2015-16 (Table 14 Page 102 Annual Report 2015-16)

Outcome 3: Advance Australia’s economic interests through Budget Actual Variations the facilitation of the trade of goods to and from Australia 2015-16a expense 2015-16 and the collection of border revenue. $’000 2015-16 $’000

$’000

Programme 3.1: Border Revenue Collection

Administered expenses: Ordinary annual services - 123 123

(Appropriation Act No. 1 and Bill No. 3)

Expenses not requiring appropriation in the Budget yearc 13,500 13,565 65

Departmental expenses: Departmental  appropriationb 67,954 72,230 4,276

Expenses not requiring appropriation in the Budget yearc 9,728 11,052 1,324

Total expenses for Programme 3.1 91,182 96,970 5,788

Programme 3.2: Trade Facilitation and Industry Engagement

Departmental expenses: Departmental  appropriationb 44,388 31,527 -12,781

Expenses not requiring appropriation in the Budget yearc 8,750 2,225 -6,525

Total expenses for Programme 3.2 53,138 33,752 -19,386

Total expenses for Outcome 3 144,320 130,722 -13,598

Average staffing level (number) 461 547 86

a. Budget relates to the revised Budget estimates reported in 2015-16 PAES. b . Departmental appr opriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’. c. Expenses not requiring appropriation in the Budget year are made up of depreciation expense,

amortis ation expense and cost recovery expense.

APPENDICES 263 262

Page 156 The organisations reported under ‘media advertising organisations’ also included the creative advertising agencies. The organisations below are listed under the correct categories. There are no changes to the reported figures, nor to the organisations listed under ‘market research organisation’ category.

Media advertising organisations: • Mitchell Adcorp Alliance

Advertising agencies: • Put It Out There Pictures • Ensemble • LOTE Marketing • STATT Consulting Ltd • International Organization

for Migration Bangladesh • International Organization for Migration Vietnam • International Organization

for Migration Indonesia • Thompson Associates (PVT) Ltd / TAL

Group / Total Media Direction (PVT) Ltd • Expert Opinion Pakistan • Organisation for Eelam Refugee Rehabilitation (OfERR) India • India ADRA • Lapis • Zanala

Page 292 The number of registered migration agents cautioned was incorrectly reported as six (published in Appendix 6: Overview of OMARA, Compliant procession, Sanction outcomes). The correct figure is seven.

The number of registered migration agents that were barred from registering again as a migration agent for periods of one to five years was incorrectly reported as five. The correct figure is six.

APPENDICES 263 262

APPEND

ix C:

REPORT ON FINANCIAL PERFORMANCE

Financial resource statement 2016-17

Actual available appropriation for Payments made Balance remaining 2016-17 2016-17 2016-17

$’000 $’000 $’000

Ordinary annual services

     

Appropriation receivable

377,725 324,779 52,946

Departmental appropriation

a

2,532,987 2,307,591 225,396

Section 74 of the

Public Governance, Performance and Accountability Act 2013

(PGPA Act) - relevant agency receipts

155,054 155,054 -

Total 3,065,766 2,787,424 278,342

Administered expenses

     

Outcome 1 2,218,142 1,883,458  

Outcome 2 51,550 49,334  

Outcome 3 - -  

Total

b

2,269,692 1,932,792  

Total ordinary annual services

A 5,335,458 4,720,216  

Other services      

Administered expenses specific payments to states, ACT, NT and local Government

- - -

Total - - -

New Administered expenses

- - -

Total - - -

Departmental non-operating

     

Equity injections

c

342,650 144,214 198,436

Total 342,650 144,214 198,436

Administered non-operating

     

Administered assets and liabilities

124,374 70,373 54,001

Payments to Commonwealth Companies (PGPA Act) bodies-non-operating

- - -

Total 124,374 70,373 54,001

Total other services B 467,024 214,587 252,437

APPENDICES 265 264

Actual available appropriation for 2016-17 $’000

Payments made 2016-17 $’000

Balance remaining 2016-17 $’000

Total available annual appropriations and payments

5,802,482

4,934,803  

Special appropriations

 

   

Special appropriations limited by criteria/entitlement

 

   

Migration Act s. 332B   -  

Special appropriation

Public Governance, Performance and Accountability Act 2013

—section 77

  460,435  

Taxation Administration Act 1953

- s.16

  202,287  

Special appropriations limited

 

   

By amount   -  

Total special appropriations

C

  662,722  

Special accounts

d

     

Opening balance - -  

Appropriation receipts - -  

Appropriation receipts - other agencies

-

-  

Non-appropriation receipts to special accounts

-

-  

Payments made - -  

Total special account

D

- -  

Total resourcing and payments (A+B+C+D)

5,802,482

5,597,525  

Less appropriations drawn from annual or special appropriations above and credited

to special accounts and/or corporate entities through annual appropriations

-

-  

Total net resourcing and payments for the Department

5,802,482

5,597,525  

The Department operates on an activity-based funding model and revenue adjustments are recorded in the financial statements in the financial year in which the activity occurs. However, the corresponding appropriation adjustment occurs in the following financial year. Therefore, the appropriations in this table are as originally passed by the Australian Parliament. a. Supply Bill (No.1) 2016-2017, Appropriation Bill (No.1) 2016-2017 and Appropriation Bill (No.3) 2016-2017. Includes an amount of $120.5 million for the departmental capital budget.

For accounting purposes, this amount has been designated as ‘contributions by owners’.

b. Administered payments include all cash payments in 2016-17 for Administered expenses. Includes an amount of $24.2 million for the administered capital budget.

For accounting purposes, this amount has been designated as ‘Transfers from the Australian Government for administered assets and liabilities’.

c. Actual available appropriation for 2016-17 includes $145.5 million attributed to prior years. d. The Department had a zero balance brought forward in relation to the Australian Population Multicultural and Immigration Research Program (APMIRP) special account.

The APMIRP special account ceased during the reporting period with the sunset clause taking effect on 1 October 2016.

APPENDICES 265 264

Expenses for Outcome 1 2016-17 Outcome 1: Protect Australia’s sovereignty, security

Budget Actual Expenses Variations

and safety by managing its border, including through

2016-17

a 2016-17 2016-17

managing the stay and departure of all non-citizens.

$’000 $’000 $’000

Program 1.1: Border Enforcement

           

Departmental expenses:

           

Departmental appropriation

b

  932,245   989,480   57,235

Expenses not requiring appropriation in the Budget year

c

  130,149   125,229   (4,920)

Departmental total   1,062,394   1,114,709   52,315

Total expenses for Program 1.1

  1,062,394   1,114,709   52,315

             

Program 1.2: Border Management

           

Administered expenses:

           

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

  8   -   (8)

Expenses not requiring appropriation in the Budget year

c

  -   -   -

Administered total   8   -   (8)

Departmental expenses:

           

Departmental appropriation

b

  209,988   190,889   (19,099)

Expenses not requiring appropriation in the Budget year

c

  26,897   28,458   1,561

Departmental total   236,885   219,347   (17,538)

Total expenses for Program 1.2

  236,893   219,347   (17,546)

             

Program 1.3: Onshore Compliance and Detention

           

Administered expenses:

           

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

  1,138,280   902,777   (235,503)

Expenses not requiring appropriation in the Budget year

c

  63,785   56,806   (6,979)

Administered total   1,202,065   959,583   (242,482)

Departmental expenses:

           

Departmental appropriation

b

  457,357   383,289   (74,068)

Expenses not requiring appropriation in the Budget year

c

  27,014   41,863   14,849

Departmental total   484,371   425,152   (59,219)

Total expenses for Program 1.3

  1,686,436   1,384,735   (301,701)

Program 1.4: IMA Offshore Management

           

Administered expenses:

           

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

  973,234   907,642   (65,592)

266

Budget 2016-17

a

$’000

Actual Expenses 2016-17 $’000

Variations 2016-17 $’000

Expenses not requiring appropriation in the Budget year

c

  71,230   85,642   14,412

Administered total   1,044,464   993,284   (51,180)

Departmental expenses:

 

         

Departmental appropriation

b

  69,908   84,625   14,717

Expenses not requiring appropriation in the Budget year

c

  4,109   6,048   1,939

Departmental total   74,017   90,673   16,656

Total expenses for Program 1.4

 

1,118,481   1,083,957   (34,524)

             

Program 1.5: Regional Cooperation

 

         

Administered expenses:

 

         

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

 

87,761   85,359   (2,402)

Expenses not requiring appropriation in the Budget year

c

  -   -   -

Administered total   87,761   85,359   (2,402)

Departmental expenses:

 

         

Departmental appropriation

b

  18,653   35,116   16,463

Expenses not requiring appropriation in the Budget year

c

  988   1,772   784

Departmental total   19,641   36,888   17,247

Total expenses for Program 1.5

 

107,402   122,247   14,845

             

Outcome 1 Totals by appropriation type

 

         

Administered expenses:

 

         

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

 

2,199,283   1,895,778   (303,505)

Expenses not requiring appropriation in the Budget year

c

  135,015   142,448   7,433

Administered total   2,334,298   2,038,226   (296,072)

Departmental expenses:

 

         

Departmental appropriation

b

  1,688,151   1,683,399   (4,752)

Expenses not requiring appropriation in the Budget year

c

  189,157   203,370   14,213

Departmental total   1,877,308   1,886,769   9,461

Total expenses for Outcome 1

 

4,211,606   3,924,995   (286,611)

Average staffing level (number)

 

8,350   8,433   83

a. Budget relates to the revised budget estimates reported in the PAES 2016-17. b. Departmental appropriation combines ordinary annual services (Appropriation Act Nos. 1, 3 and Supply Act No.1) and retained revenue receipts under section 74

of the

Public Governance, Performance and Accountability Act 2013

.

c. Expenses not requiring appropriation in the Budget year include depreciation and amortisation, write down and impairment of assets.

APPENDICES 267 266

Expenses for Outcome 2 2016-17 Outcome 2: Support a prosperous and inclusive society, and advance Australia’s

Budget Actual Expenses Variations

economic interests through the effective management of the visa and citizenship

2016-17

a 2016-17 2016-17

programs and provision of refugee and humanitarian assistance.

$’000 $’000 $’000

             

Program 2.1: Citizenship

           

Departmental expenses:

           

Departmental appropriation

b

  57,901   82,599   24,698

Expenses not requiring appropriation in the Budget year

c

  7,264   9,255   1,991

Departmental total   65,165   91,854   26,689

Total expenses for Program 2.1

  65,165   91,854   26,689

             

Program 2.2: Migration

           

Departmental expenses:

           

Departmental appropriation

b

  273,552   261,762   (11,790)

Expenses not requiring appropriation in the Budget year

c

  21,619   26,598   4,979

Departmental total   295,171   288,360   (6,811)

Total expenses for Program 2.2

  295,171   288,360   (6,811)

             

Program 2.3: Visas            

Administered expenses:

           

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

  -   1,122   1,122

Expenses not requiring appropriation in the Budget year

c

  -   10,611   10,611

Administered total   -   11,733   11,733

Departmental expenses:

           

Departmental appropriation

b

  328,895   347,098   18,203

Expenses not requiring appropriation in the Budget year

c

  43,310   40,558   (2,752)

Departmental total   372,205   387,656   15,451

Total expenses for Program 2.3

  372,205   399,389   27,184

268

Budget 2016-17

a

$’000

Actual Expenses 2016-17 $’000

Variations 2016-17 $’000

Program 2.4: Refugee and Humanitarian Assistance

 

         

Administered expenses:

 

         

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

 

51,550   48,170   (3,380)

Expenses not requiring appropriation in the Budget year

c

  -   -   -

Administered total   51,550   48,170   (3,380)

Departmental expenses:

 

         

Departmental appropriation

b

  106,448   136,361   29,913

Expenses not requiring appropriation in the Budget year

c

  4,249   10,656   6,407

Departmental total   110,697   147,017   36,320

Total expenses for Program 2.4

 

162,247   195,187   32,940

             

Outcome 2 Totals by appropriation type

 

         

Administered expenses:

 

         

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

 

51,550   49,292   (2,258)

Expenses not requiring appropriation in the Budget year

c

  -   10,611   10,611

Administered total   51,550   59,903   8,353

Departmental expenses:

 

         

Departmental appropriation

b

  766,796   827,820   61,024

Expenses not requiring appropriation in the Budget year

c

  76,442   87,067   10,625

Departmental total   843,238   914,887   71,649

Total expenses for Outcome 2

 

894,788   974,790   80,002

Average staffing level (number)

 

5,090   4,921   (169)

             

a. Budget relates to the revised budget estimates reported in the PAES 2016-17. b. Departmental appropriation combines ordinary annual services (Appropriation Act Nos. 1, 3 and Supply Act No.1) and retained revenue receipts under section 74

of the

Public Governance, Performance and Accountability Act 2013

.

c. Expenses not requiring appropriation in the Budget year include depreciation and amortisation, write down and impairment of assets.

APPENDICES 269 268

Expenses for Outcome 3 2016-17

Budget Actual Expenses Variations

Outcome 3: Advance Australia’s economic interests through the facilitation of

2016-17

a 2016-17 2016-17

the trade of goods to and from Australia and the collection of border revenue.

$’000 $’000 $’000

             

Program 3.1: Border-Revenue Collection

           

Administered expenses:

           

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

  -   -   -

Expenses not requiring appropriation in the Budget year

c

  13,500   18,693   5,193

Administered total   13,500   18,693   5,193

Departmental expenses:

           

Departmental appropriation

b

  66,167   71,943   5,776

Expenses not requiring appropriation in the Budget year

c

  5,449   10,775   5,326

Departmental total   71,616   82,718   11,102

Total expenses for Program 3.1

  85,116   101,411   16,295

             

Program 3.2: Trade Facilitation and Industry Engagement

           

Departmental expenses:

           

Departmental appropriation

b

  52,603   36,971   (15,632)

Expenses not requiring appropriation in the Budget year

c

  2,391   3,024   633

Departmental total   54,994   39,995   (14,999)

Total expenses for Program 3.2

  54,994   39,995   (14,999)

             

APPENDICES 271 270

Budget 2016-17

a

$’000

Actual Expenses 2016-17 $’000

Variations 2016-17 $’000

Outcome 3 Totals by appropriation type

 

         

Administered expenses:

 

         

Ordinary annual services (Appropriation Act No. 1, 3, Supply Act No.1)

 

-   -   -

Expenses not requiring appropriation in the Budget year

c

  13,500   18,693   5,193

Administered total   13,500   18,693   5,193

Departmental expenses:

 

         

Departmental appropriation

b

  118,770   108,914   (9,856)

Expenses not requiring appropriation in the Budget year

c

  7,840   13,799   5,959

Departmental total   126,610   122,713   (3,897)

Total expenses for Outcome 3

 

140,110   141,406   1,296

Average staffing level (number)

 

560   618   58

             

a. Budget relates to the revised budget estimates reported in the PAES 2016-17. b. Departmental appropriation combines ordinary annual services (Appropriation Act Nos. 1, 3 and Supply Act No.1) and retained revenue receipts under section 74

of the

Public Governance, Performance and Accountability Act 2013

.

c. Expenses not requiring appropriation in the Budget year include depreciation and amortisation, write down and impairment of assets.

APPENDICES 271 270

APPENDix D: SALARY AND CLASSIFICATION RATES

The following tables provide a breakdown of salary ranges within each classification as prescribed by the Departments EA.

Table 31: Salary and classification rates - Indigenous cadets and graduates

APS classification Salary point Salary effective 30 June 2017

Indigenous Cadet pay rates during full-time $25,451

study are 60 per cent of full-time APS1

APS1 and Indigenous Cadet during practical training APS 1.1 $42,419

APS 1.2 $43,825

APS 1.3 $47,004

Graduate (APS Level 3) APS 3.1 $53,937

APS 3.2 $55,553

APS 3.3 $59,933

APPENDICES 273 272

Table 32: Salary and classification rates - APS level staff

APS classification Salary point Salary effective 30 June 2017

APS Level 1 APS 1.1 $42,419

APS 1.2 $43,825

APS 1.3 $47,004

APS Level 2 APS 2.1 $47,424

APS 2.2 $48,667

APS 2.3 $49,935

APS 2.4 $53,353

APS Level 3 APS 3.1 $53,937

APS 3.2 $55,553

APS 3.3 $59,933

APS Level 4 APS 4.1 $60,452

APS 4.2 $62,027

APS 4.3 $66,904

APS Level 5 APS 5.1 $67,638

APS 5.2 $68,948

APS 5.3 $72,856

APS Level 6 APS 6.1 $74,321

APS 6.2 $78,054

APS 6.3 $85,301

APPENDICES 273 272

Table 33: Salary and classification rates - Executive Level staff

APS classification Salary point Salary effective 30 June 2017

Executive Level 1 EL 1.1 $92,801

EL 1.2 $95,083

EL 1.3 $103,393

Executive Level 2 EL 2.1 $109,959

EL 2.2 $114,070

EL 2.3 $118,179

EL 2.4 $128,120

Table 34: Salary and classification rates - Legal Officers

APS classification Local title Salary point Salary effective 30 June 2017

APS Level 4 Legal Officer LO APS 4.1 $66,283

APS Level 5 LO APS 5.1 $72,022

APS Level 6 LO APS 6.1 $74,321

LO APS 6.2 $78,054

LO APS 6.3 $86,894

Executive Level 1 Senior Legal Officer SLO EL 1.1 $98,564

SLO EL 1.2 $106,945

SLO EL 1.3 $118,000

Executive Level 2 Principal Legal Officer PLO EL 2.1 $127,452

PLO EL 2.2 $134,059

APPENDICES 275 274

Table 35: Salary and classification rates - Public Affairs Officers

APS classification Local title Salary point Salary effective 30 June 2017

APS Level 4 Public Affairs Officer 1 PAO 1 APS 4.1 $60,452

PAO 1 APS 4.2 $66,736

APS Level 5 PAO 1 APS 5.1 $67,399

PAO 1 APS 5.2 $72,856

APS Level 6 Public Affairs Officer 2 PAO 2 APS 6.1 $76,188

PAO 2 APS 6.2 $78,054

PAO 2 APS 6.3 $80,442

PAO 2 APS 6.4 $87,806

Executive Level 1 Public Affairs Officer 3 PAO 3 EL 1.1 $104,800

PAO 3 EL 1.2 $106,945

PAO 3 EL 1.3 $115,836

Executive Level 2 Senior Public Affairs SPAO B EL 2.1 $114,697

Officer B

SPAO B EL 2.2 $124,463

Senior Public Affairs SPAO A EL 2.3 $121,022

Officer A

SPAO A EL 2.4 $131,103

Table 36: Salary and classification rates - Medical Officers

APS classification Salary point Salary effective 30 June 2017

Medical Officer Class 2 MO 2.1 $116,580

MO 2.2 $127,121

Medical Officer Class 3 MO 3.1 $130,311

MO 3.2 $141,226

Medical Officer Class 4 MO 4.1 $147,664

MO 4.2 $150,449

MO 4.3 $161,970

APPENDICES 275 274

APPENDix E: ADMINISTRATION OF THE OFFICE OF THE MIGRATION AGENTS REGISTRATION AUTHORITY

Overview of the Office of the Migration Agents Registration Authority

The Office of the Migration Agents Registration Authority (OMARA) regulates the activities of the Australian migration advice profession.

This provides consumers of migration advice services with appropriate protection and assurance.

In accordance with section 322 of the Migration Act 1958, OMARA is required to submit a report to Parliament on the administration of Part 3 of the Act during the financial year.

Information about migration agents

Overview of the profession On 30 June 2017, 7006 people were registered in Australia as migration agents. This compares with 6306 on 30 June 2016 and represents an increase of 12 per cent in 12 months.

Profile of r egistered

migration agents • 48 per cent are female and 52 per cent are male • 44 years is the average age • 2292 (33 per cent) of the

total number registered have a legal practising certificate; of the 573 agents who are registered

as not-for-pr

ofit,

77 per cent hold a legal practising certificate • 75 per cent have never had a complaint

made against them • 39 per cent report operating in a business

as a sole trader.

Table 37: Experience of registered migration agents at 30 June 2017

Experience (years) Agents Per cent (of total agents)

< 1 1499 21%

1 - 3 2010 29%

4 - 6 883 13%

7 - 9 918 13%

> 10 1696 24%

Total 7006 100%

APPENDICES 277 276

Figure 10: Experience of registered migrant agents at 30 June 2017

Percentage (of total agents)

0% 5% 10% 15% 20% 25% 30%

Experience

>10

7-9

4-6

1-3

<1

Table 37 shows that at 30 June 2017, some 1499 (21 per cent) of migration agents had been continuously registered for less than one year and 2010 (29 per cent) had been registered for between one and three years. In all, 1696 (24 per cent) agents were registered for more than 10 years.

Registration refusals and withdrawals During 2016-17, 11 registration applications were refused, comprising two initial applications and nine repeat applications. In addition, 47 applications

were withdrawn in anticipation of the application being refused, mostly for not meeting the English language requirement. Refusals of initial registration applications were based

on applicants not meeting the English language and qualification requirements. Refusals of repeat registration applications were based on fit and proper considerations.

APPENDICES 277 276

Complaint processing

The OMARA received 746 complaints during 2016-17 and finalised 584. Merit and jurisdiction were established for 235 complaints and 107 were finalised with a finding that the agent had breached the code of conduct for registered migration agents.

Sanction outcomes Disciplinary decisions were made in regard to 16 registered migration agents in 2016-17, in relation to 40 of the 107 complaints where breaches were found. These decisions resulted in seven agents having their

registration suspended, eight having their registration cancelled and one agent being barred from registering again as a migration agent for a period of five years.

OMARA review

The OMARA continues to implement recommendations from the independent review conducted by Dr Christopher N Kendall in 2014. As a result of the recommendations, the following have been implemented: • The agents’ registration

renewal process was streamlined to reduce the required supporting documents needed during re-registration. This has resulted in a faster process and a significantly reduced regulatory burden.

• From 1 July 2016, Australian legal practitioners no longer need to complete additional continuing professional development to renew their registration as a migration agent. • Legal profession

regulatory bodies were consulted on the removal of Australian legal practitioners who provide immigration assistance from regulation by the OMARA. Legislation was tabled in Parliament on 21 June 2017.

• Approval was granted to various Australian universities to develop and deliver the new entry-level qualification for migration agents at the graduate diploma level. The new course is expected to be available from January 2018.

APPENDICES 279 278

APPENDix F: INFORMATION PUBLICATION SCHEME

Agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act.

Information on the Department’s IPS is available on the Department’s website.103

103 www.border.gov.au/about/access-accountability/freedom-of-information-foi/information-publication-scheme

APPENDICES 279 278

Reference material

PART 7

ABBREVIATIONS 282

GLOSSARY 288

LIST OF REQUIREMENTS 300

INDEX 306

PART 7: Reference material

ABBREVIATIONS AND ACRONYMS

A

ABF Australian Border Force

ABFC Australian Border Force Cutter

AC Audit Committee

ACBPS Australian Customs and Border Protection Service

ADF Australian Defence Force

AEO

AFP

Authorised Economic Operator

Australian Federal Police

AHRC

AHT

AMD

Australian Human Rights Commission

Average handle time

Australian maritime domain

ANAO Australian National Audit Office

APEC

APM

Asia-Pacific Economic Cooperation

Australian Police Medal

APS Australian Public Service

APSC Australian Public Service Commission

ASEAN Association of Southeast Asian Nations

ATO Australian Taxation Office

ATT Australian Trusted Trader

Austrade Australian Trade and Investment Commission

REFERENCE MATERIALS 283 282

B

BVE

C

Bridging visa E (subclass 050-051)

CDC Commercial data centre

CMP

CPOH

CPRs

Compliance Monitoring Programme

Calls per open hour handled

Commonwealth Procurement Rules

CSAM

CSP

CSS

CTU

Continuous Survey of Australia’s Migrants

Community Support Programme

Commonwealth Superannuation Scheme

Counter-Terrorism Unit

D

DFAT

DIBP or the Department

E

Department of Foreign Affairs and Trade

Department of Immigration and Border Protection

EA

EEGO

EEZ

Enterprise Agreement

Energy Efficiency in Government Operations

Exclusive Economic Zone

EL Executive Level

ELOs Ethnic Liaison Officers

ELT

EMS

English language training

Environmental management system

REFERENCE MATERIALS 283 282

F

FCO Fraud Control Office

FFV

FOI

Foreign fishing vessel

Freedom of Information

FWC Fair Work Commission

G

GLS Green lease schedule

GOS Grade of Service

I

ICT

IDF

IFA

IMA

IOM

IPS

Information and communications technology

Immigration detention facility

Individual flexibility arrangement

Illegal maritime arrival

International Organization for Migration

Information Publication Scheme

ISA

J

Integrity, Security and Assurance

JLL

K

Jones Lang LaSalle

KPI

L

Key performance indicator

LGBTI

M

Lesbian, gay, bisexual, transgender or intersex

MBC Maritime Border Command

MoU

MRA

Memorandum of Understanding

Mutual recognition agreement

REFERENCE MATERIALS 285 284

N

NABERS

NAIDOC

NCTF

National Australian Built Environment Rating System

National Aborigines and Islanders Day Observance Committee

National Committee on Trade Facilitation

NII

NPWS

Non-intrusive inspection

National Parks and Wildlife Service

NRRT National Returns and Removals Taskforce

O

OAIC Office of the Australian Information Commissioner

OCO

OMARA

OMCGS

ORG

OSB

OTCG

P

Oceania Customs Organisation

Office of the Migration Agents Registration Authority

Outlaw motorcycle gangs

Operational Requirements Group

Operation Sovereign Borders

Operations Tasking and Coordination Group

PAES Portfolio Additional Estimates Statements

PBS

PGPA Act

PIA

Portfolio Budget Statements

Public Governance, Performance and Accountability Act 2013

Protected industrial action

PIDC

PNG

PNR

PSM

Pacific Immigration Director Conference

Papua New Guinea

Passenger name records

Public Service Medal

PSS

PUE

PWGA

Public Sector Superannuation Scheme

Power usage effectiveness

Passenger Workload Growth Agreement

REFERENCE MATERIALS 285 284

R

RCA Regional Cooperation Arrangement

ReCAAP The Regional Cooperation Agreement on Combating Piracy

and Armed Robbery against Ships in Asia

RILO AP Regional Intelligence Liaison Office Asia/Pacific

RPC Regional processing centre

RSD Refugee status determination

RSO Regional Support Office

S

SAP Strategic Assurance Programme

SCG Strategic Command Group

SCV Special Category (subclass 444) visa

SDP Service delivery partner

SES Senior Executive Service

SIEV Suspected illegal entry vessel

SLAs Service level agreements

SMEs Small and medium enterprises

SPM Strategic performance measure

SSVF Simplified student visa framework

T

TEU Twenty foot equivalent unit (cargo capacity measurement)

TIS Translating and Interpreting Service

U

UNHCR United Nations High Commissioner for Refugees

US United States

REFERENCE MATERIALS 287 286

V

VEVO Visa entitlement verification online

W

WCO

WHS

World Customs Organization

Work health and safety

REFERENCE MATERIALS 287 286

GLOSSARY

Term Definition

A

Asia-Pacific Economic Cooperation (APEC) Business Travel Card

Allows business travellers, who are citizens of APEC member countries, faster and easier entry to these countries.

Assisted voluntary return A service delivered in partnership with the International Organization for Migration that provides impartial immigration advice, counselling and financial support for clients who wish to return home but require some level of support to do so, thus avoiding the need to detain and enforce removal.

Association of Southeast Asian Nations (ASEAN) Established on 8 August 1967, ASEAN is a regional grouping that promotes economic, political, and security cooperation among its 10 members: Brunei,

Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

Asylum seeker Person claiming protection. As a party to the 1951 Convention Relating to the Status of Refugees and its 1967 Protocol, Australia is committed to providing protection to refugees consistent with the obligations set out in the convention and other relevant international treaties to which Australia is a party.

Australian Human Rights Commission Act 1986 An Act that establishes the Australian Human Rights Commission to ensure compliance with international covenants, declarations or other instruments

pertaining to human rights to which Australia is a signatory.

AusTender Australian Government’s tendering system.

Australian Trusted Trader A voluntary trade facilitation initiative open to all eligible Australian businesses active in the international trade supply chain.

B

Bali Process The Bali Process on People Smuggling, Trafficking in Persons and Related Transnational Crime is the preeminent multilateral forum in the Asia-Pacific to raise regional awareness of the consequences of people smuggling, trafficking in people and related transnational crime.

Border continuum The Department’s approach which views the Australian border as a complex continuum stretching offshore and onshore, including its overseas, maritime, physical and domestic dimensions.

Border Control Agency Management Programme An Australian Government sponsored programme to train migration officers from the Mekong region to facilitate the movement of regular and, through cooperation,

to act against people smuggling and human trafficking.

Bridging visa E (subclass 050-051) BVE A temporary visa that allows non-citizens to stay in Australia lawfully while they make arrangements to leave, finalise their immigration matter

or are waiting for an immigration decision.

REFERENCE MATERIALS 289 288

Term Definition

C

Channels Ways in which a person or business can contact or interact with the Department.

Citizenship Wizard An application on the Department’s website that provides information about applying for Australian citizenship.

Cocaine Addictive illicit drug derived from coca or prepared synthetically.

Comcare A statutory authority established under the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) and covered by the Commonwealth Authorities and Companies Act 1997 that administers the Commonwealth’s workers’ compensation scheme under the SRC Act; and the Work Health and Safety Act 2011.

Commercial Building Disclosure Program

Developed by the Department of Environment and Energy, it requires sellers and lessors of large office spaces to provide energy efficiency information to prospective buyers and tenants.

Commercial data centre A facility used to house computer systems and associated components, such as telecommunications and storage systems.

Community detention An alternative term for ‘residence determination’. This allows a person who is to be taken into immigration detention or who is in immigration detention to reside in the community at a specified address and in accordance with certain conditions, instead of being held in immigration detention. Under the Migration Act 1958, the Minister has a non-compellable, non-delegable power to make, vary or revoke a residence determination if it is thought to be in the public interest.

Community Proposal Pilot Established in 2013 to strengthen Australia’s commitment to assisting refugees by providing an additional resettlement pathway for people in humanitarian situations outside Australia. From 1 July 2017 the Community Support Programme replaced the Community Proposal Pilot.

Community Support Programme

From 1 July 2017 the establishment of 1000 places by which communities and businesses can sponsor humanitarian visa applicants and support new arrivals.

Comptroller-General of Customs

A role responsible for enforce of Customs law and collection of border-related revenue.

Conference of Asia Pacific Express Carriers An organisation that represents the world’s leading integrated express delivery service companies.

Counter-Terrorism Legislation Amendment (Foreign Fighters) Act 2014

An Act to amend the law relating to counter-terrorism and other matters, and for related purposes.

Customs Brokers and Forwarders Council of Australia

A peak industry body representing the interests of members of the international trade, logistic and supply chain management service industry.

REFERENCE MATERIALS 289 288

Term Definition

D

Disability Under the Disability Discrimination Act 1992 in relation to a person, disability is defined as: • total or partial loss of bodily or mental functions • total or partial loss of a part of the body • the presence in the body of organisms causing disease or illness • the presence in the body of organisms capable of causing disease or illness • the malfunction, malformation or disfigurement of a part of the body • disorder or malfunction that results in the person learning differently from

someone without the disorder or malfunction • a disorder, illness or disease that affects a person’s thought processes, perception of reality, emotions or judgement or that results in disturbed

behaviour and includes a disability that: • presently exists • previously existed but no longer exists • may exist in the future • is imputed to a person.

Displaced populations People who leave their homes in groups, usually because of a natural, technological or deliberate event, such as an earthquake, flood, threat or conflict.

E

Education Visa Consultative Committee A stakeholder forum that discusses immigration issues relevant to the education industry.

eLearning Learning conducted via electronic media, typically online.

Energy Efficacy in Government Operations Policy developed by the Department of Environment and Energy which aims to reduce the energy consumption of Australian Government operations, with

particular emphasis on building energy efficiency.

Environmental management system

A structured system or management tool designed to help an organisation reduce its negative impacts on the environment and improve its environmental performance.

Environment Protection and Biodiversity Conservation Act 1999

The Australian Government’s central piece of environmental legislation, providing a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places defined in the Act as matters of national environmental significance.

ePassport Passport with an embedded chip.

Examination Examination of cargo by an ABF officer.

Examination of mail item Examination of a mail item, including opening of the item itself, by an ABF officer.

REFERENCE MATERIALS 291 290

Term Definition

Exclusive Economic Zone (EEZ) The Australian EEZ is defined in the Seas and Submerged Lands Act 1973. It is the area beyond and adjacent to Australia’s territorial sea, the outer

limit of which does not extend beyond 200 nautical miles from the baseline. The Australian EEZ area is made up of 8.2 million square kilometres located off Australia and its remote offshore territories and 2 million square kilometres off the Australian Antarctic Territory.

F

Family migration programme Family stream migration is one of the main components of Australia’s Migration Programme. It has four main categories -partner, child, parent and other family visa categories.

Federal Chamber of Automotive Industries (FCAI)

The peak industry organisation representing the manufacturers and importers of passenger vehicles, light commercial vehicles and motorcycles in Australia.

Freedom of Information Act 1982 An Act that gives members of the public right of access to official documents of the Commonwealth Government and of its agencies.

Freight and Trade Alliance An Australian representative body for the international supply chain sector that brings together importers, customs brokers, freight forwarders and logistics service providers.

G

General Cancellation Network

Undertakes visa cancellation activity (other than character grounds) to support the integrity of Australia’s visa programme and to protect the Australian community. It supports operational, programme and policy areas and has a strong focus on national security, community protection, identity and other serious fraud, and breaches of visa conditions.

Green lease schedule A formal commitment to energy efficiency developed by the Department of Environment and Energy to reduce energy consumption by Australia Government operations.

H

Harmony Day A celebration of Australia’s cultural diversity held yearly on 21 March. It coincides with the United Nations International Day for the Elimination of Racial Discrimination.

HMAS Bathurst A Royal Australian Navy vessel with a range of 3,000 nautical miles at 12 knots and a maximum speed of 25 knots. It is the RAN’s principal contribution to the nation’s fisheries protection, immigration, customs and drug law enforcement operations.

Humanitarian Programme Australia’s Humanitarian Programme comprises the offshore resettlement and onshore protection components.

REFERENCE MATERIALS 291 290

Term Definition

I

Illegal maritime arrival (IMA) The word ‘illegal’ refers to the mode of entry of persons who enter Australia by boat without a valid visa. Asylum seekers and migrants who are smuggled to Australia may breach border controls and domestic laws in entering and seeking protection in Australia. Unauthorised arrivals are referred to in the Migration Act 1958 but in this report the term used is ‘illegal maritime arrivals’.

Illegal worker warning notice A written warning issued when an officer has reason to believe that a person has contravened a work-related provision.

ImmiAccount Single entry point for individuals, registered migration agents, service delivery partners, business and stakeholders to access the Department’s online services. Through ImmiAccount clients can create, submit, pay for and manage their online visa applications in one place. It also connects clients to other online services, including My Health Declarations, Visa Finder, visa entitlement verification online (VEVO), LEGENDcom and the Pricing Estimator.

Industry Hub Web page developed by the Department in consultation with members of the Industry Summit to improve communication with industry stakeholders and make information more readily available.

Industry Summit Hosted by the Department annually, the Industry Summit is a forum where industry and the Department can discuss strategic travel, trade and migration issues.

Inspection May include use of non-intrusive examination through X-ray technology (static or mobile), trace particle detection, detector dogs or physical examination of cargo.

Integrated Department A term describing the Department after the integration of the former Immigration Department and the Australian Customs and Border Protection Service. Integration created the Department of Immigration and Border Protection, with the Australian Border Force within the organisation.

Intelligence-informed approach An procedure that ensures that strategic and operational decision-making is based on intelligence information.

International Capacity Building Programme A scheme to develop and strengthen the skills, instincts, abilities, processes and resources of international organisations and communities.

International Day of People with Disability A United Nations-sanctioned day that is celebrated internationally. It aims to increase public awareness, understanding and acceptance of people with

disabilities and to celebrate their achievements and contributions.

International Women’s Day A commemoration of the movement and expansion of women’s rights, held annually on March 8.

Intervention Use of processes, including risk assessment, inspection and examination, to prevent the import or export of prohibited items and to control the movement of restricted items.

REFERENCE MATERIALS 293 292

Term Definition

K

Key performance indicator Quantitative or qualitative variable that provides a reliable way to measure intended changes. KPIs are used to chart progress and measure actual results as compared with expected results.

L

Legacy caseload The Department’s term to describe the cohort of illegal maritime arrivals (IMAs).

LGBTI Network A Departmental network that supports a safe and supportive workplace for all lesbian, gay, bisexual, transgender and intersex (LGBTI) people.

M

Megajoules A unit of measurement, a megajoule (MJ) is equal to one million joules, or approximately the kinetic energy of a one megagram (tonne) vehicle moving at 160 km/h.

Maritime Powers Act 2012 An Act that establishes a framework for the exercise of maritime enforcement powers.

Migration Act 1958 The principal piece of legislation that regulates travel to Australia and the stay of non-citizens.

Migration Programme The annual planned permanent intake, determined by the Australian Government in a budgetary context, which governs the number of visas granted for permanent entry from offshore and for permanent resident status onshore. It does not include New Zealand citizens intending to settle permanently in Australia.

Migration Programme planning levels The Migration Programme is designed to achieve a range of economic and social outcomes. The number of places available through the programme is set annually

in response to Australia’s needs.

N

NAIDOC Week NAIDOC (National Aboriginal and Islander Day Observance Committee) Week is an Australian observance lasting from the first Sunday in July until the following Sunday. It celebrates the history, culture and achievements of Aboriginal and Torres Strait Islander peoples.

National Australian Built Environment Rating System A national rating system that measures the environmental performance of Australian buildings.

National Carers Week An observance that marks the contribution unpaid carers make in Australia.

National Committee on Trade Facilitation A forum for the discussion of matters affecting Australian industry stakeholders in international trade.

REFERENCE MATERIALS 293 292

Term Definition

National Innovation and Science Agenda An Australian Government programme to foster new ideas in science and harness new sources of growth to deliver economic prosperity in Australia.

National Passenger Facilitation Committee A committee chaired by the Department that advises on passenger processing policy.

National Reconciliation Week An annual event that celebrates and builds on the respectful relationship shared by Aboriginal and Torres Strait Islander people and other Australians.

National Sea Passenger Facilitation Committee A body to explore ideas and options, and develop and implement initiatives to improve international sea passenger movements and other aspects of

international ocean vessel visits, while maintaining or enhancing Australia’s border protection capability.

Nautical miles A measurement of distances at sea, equal to 1,852 metres.

New Zealand Customs Service

The government agency entrusted with ensuring the security of the New Zealand border.

O

Ocean Shield The largest ship in the ABF fleet. It can respond to a range of maritime security threats and undertakes patrols in northern waters and the Southern Ocean.

Oceania Customs Organisation

The Oceania Customs Organisation (OCO) Secretariat exists to help customs administrations comply with international standards and best practice, increasing economic prosperity and border security.

Office of the Migration Agents Registration Authority An office within DIBP that regulates the migration advice industry to provide appropriate protection and assurance to people using migration advice services.

Online lodgement A method which allows applications to be completed and submitted on the internet.

Onshore and offshore Unless otherwise indicated, ‘onshore’ and ‘offshore’ refer to the location of the person at the time of applying for a visa or visa grant.

Operation Sovereign Borders Joint Agency Task Force Operation Sovereign Borders Joint Agency Task Force (OSB JATF) is a military-led, border security operation established to ensure a whole-of-government effort

to combat maritime people smuggling. OSB JATF is supported by 16 Australian Government agencies.

REFERENCE MATERIALS 295 294

Term Definition

P

Pacific Immigration Director’s Conference A forum for official immigration agencies in the Pacific region.

Partner and prospective marriage visa The Prospective Marriage (subclass 300) visa allows individuals to come to Australia to marry their fiancé.

Passenger name records Information on people taking or proposing to take international passenger flights into and out of Australia.

Patrols (CTU context) Overt and covert activity by CTU officers in airport precincts with the intention of detecting, deterring and disrupting terrorist-related activity.

People Strategy 2020 The Department’s overarching vision for its people and sets the tone for the organisational culture.

Planning level The Australian Government sets annual planning levels by visa category under the permanent Migration Programme for Skilled, Family and Special Eligibility stream migrants, and under the Humanitarian Programme for refugees and others in humanitarian need. Planning levels are ceilings, not targets.

Portfolio Budget Statements Documents that inform parliamentarians and the public of the proposed allocation of resources to achieve government outcomes.

Power usage effectiveness A measure of how efficiently a computer data centre uses energy; specifically, how much energy is used by the computing equipment (in contrast to cooling and other overheads).

Primary Application Information service

A government-funded service to help eligible illegal arrivals apply for a protection visa.

Priority processing direction The order in which the Department considers permanent skilled migrant applications.

Public Governance, Performance and Accountability Act 2013 (PGPA Act)

An Act about the governance, performance and accountability of, and the use and management of public resources by the Commonwealth, Commonwealth entities and Commonwealth companies, and for related purposes.

Public Service Act 1999 The principal Act governing the establishment and management of the Australian Public Service.

REFERENCE MATERIALS 295 294

Term Definition

R

RAND Corporation American-base-research organisation that develops public policy solutions.

Reconciliation Ambassadors Network An internal network developed by the Department to progress reconciliation initiatives.

RecruitAbility An Australian Public Service scheme that aims to attract and develop applicants with disabilities and to facilitate cultural changes in selection panels and agency recruitment.

Refugee and Humanitarian Assistance Programme Australia’s Refugee and Humanitarian Assistance Programme is an important part of the Department’s contribution to the international protection of refugees.

It is designed to ensure that Australia can respond effectively to global humanitarian needs and have support services available to meet the specific needs of people entering under the programme.

Refugee A person recognised as needing protection. The 1951 Convention Relating to the Status of Refugees defines a refugee is someone who is outside their country and is unable or unwilling to go back because they have a well-founded fear of being persecuted because of their race, religion, nationality, political opinions or membership of a particular social group.

The Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia

The first regional government-to-government agreement to promote and enhance cooperation against piracy and armed robbery against ships in Asia.

Regional processing country A country designated by the minister under subsection 198AB(1) of the Migration Act 1958 as a regional processing country.

S

Safe Haven Enterprise (subclass 790) visa (SHEV) A five-year temporary protection visa granted to those who arrive unlawfully in Australia and are found to engage Australia’s protection obligations. In some

instances it can lead to a permanent visa pathway.

Simplified student visa framework

A framework that came into effect on 1 July 2016 that is designed to simplify the student visa application process for genuine students.

Shipping Australia Limited Australian company that promotes and advances the interests of shipowners and shipping agents in all matters of shipping policy, environmentally sustainable practices and safe ship operations.

Skilled Independent Visa The Skilled Independent (subclass 189) visa is available to points-tested skilled workers who are not sponsored by an employer or family member.

Skill stream Those categories of the Migration Programme where the core eligibility criteria are based on the applicant’s employability or capacity to invest and/or do business in Australia. Any accompanying immediate family members of Skill stream principal applicants are also counted as part of the Skill stream.

REFERENCE MATERIALS 297 296

Term Definition

SmartGate Automated border processing system.

Special Category Visa The Special Category (subclass 444) visa allows New Zealand citizens to visit, study, stay and work in Australia.

Special Humanitarian Programme (SHP) A stream within the offshore Humanitarian Programme that allows people who face human rights abuse in their home country and have a connection

to the Australian community to settle permanently in Australia.

Special Eligibility stream A subset of the Migration Programme that provides for the migration of former residents of Australia.

Status resolution officers Status resolution officers work with clients to explain visa options and how decisions they make can affect options later on.

Statutory Of, relating to, or of the nature of a statute (an enactment made by a legislature and expressed in a formal document). For example, a statutory process would be a process that is prescribed or authorised by statute.

Strategic Performance Measure Strategic performance measures (SPM) form part of the Department’s performance framework. Each SPM represents one of the Department’s purposes

in a measureable and detailed form.

Strategy 2020 The tier-one document that guides the Department’s long-term strategy for fulfilling its mission, and that articulates its strategic objectives and responses.

Student A term referring to a holder of a student visa (subclasses 570-576).

T

Tariff classification Goods imported into Australia require classification under the Customs Tariff Act 1995.

Temporary Skilled Migration Income Threshold A major component of the Temporary Skilled (subclass 457) visa programme. It has been used as an entry-level salary threshold to protect lower-paid Australian

jobs and to ensure that 457 visa holders have reasonable means of support while in Australia.

Temporary Protection (subclass 785) visa A temporary protection visa offered by the Department to those who have arrived in Australia illegally.

Temporary visas or temporary entry visas Provides for the entry of people from overseas to Australia on a temporary basis for purposes that benefit Australia, such as tourism, study, work or other activities.

From 2014-15 this definition was expanded to include Special Category visas (subclass 444) provided to New Zealanders when they enter Australia.

Temporary Work (Skilled) (subclass 457) visa Allows a skilled worker travel to Australia to work in their nominated occupation for their approved sponsor for up to four years. On 18 April 2017 the Prime

Minster, the Hon Malcolm Turnbull MP, and Minister for Immigration and Border Protection, the Hon Peter Dutton MP, announced that the Temporary Work (Skilled) (subclass 457) visa would be abolished and replaced with the new Temporary Skill Shortage (TSS) visa. This will help businesses to meet genuine skill shortages.

REFERENCE MATERIALS 297 296

Term Definition

TIS National Provides interpreting services in more than 160 languages and dialects for people who do not speak English and for agencies and businesses that need to communicate with non-English-speaking clients.

TIS Online An online self-help service that provides better access for non-English speakers, reduces the cost of providing key government services, and adopts digital-first strategies to serve real-time community needs. It has transformed TIS National’s capability, providing faster and better services for clients at a lower cost per service.

Tourist Refund Scheme Allows for departing Australian international passengers and overseas tourists to claim back the Wine Equalisation Tax and/or Goods and Services Tax on goods purchased in Australia and taken overseas with them.

Transferee An IMA transferred to an offshore processing centre in an offshore regional processing country.

Trace particle detector Based on the principal of ion mobility spectrometry, it detects traces of substances in the low nanogram (1 billionth of a gram) range. The detector takes eight seconds to analyse collected particles and display the results on a computer screen. Detectors are in operation at airports, seaports, cargo and postal facilities throughout Australia.

Twenty foot equivalent units A unit of cargo capacity that describes the capacity of container ships and container terminals. It is based on the volume of a 20-foot-long (6.1m) intermodal container, a standard size metal box that can be easily transferred between different modes of transportation.

U

Unaccompanied The Unaccompanied Humanitarian Minors Programme facilitates the provision Humanitarian Minors of relevant care, supervision and support services to minors on certain visas who Programme are in Australia without a parent or legal guardian, who fall under the auspices of the Immigration (Guardianship of Children) Act 1946 (IGOC Act), and for whom

the Minister for Immigration and Border Protection is the legal guardian.

Unaccompanied minor A person under 18 years of age who arrives in Australia without a natural parent, or relative 21 years or older.

V

Visa entitlement verification An online service operated by the Department to check visa details and decisions. online (VEVO)

REFERENCE MATERIALS 299 298

Term Definition

W

Woman at Risk (subclass 204) visa

A visa for female applicants and their dependants who are subject to persecution or who are of concern to the UNHCR, are living outside their home country without the protection of a male relative and are in danger of victimisation, harassment or serious abuse because of their gender. This subclass recognises the priority the UNHCR gives to the protecting of refugee women who are in particularly vulnerable situations.

Work Health and Safety Act (Cth) 2011 An Act to secure the health and safety of persons at work. It superseded the Occupational Health and Safety Act 2000.

Working holiday makers A collective term referring to those holding Working Holiday (subclass 417) visas and Work and Holiday (subclass 462) visas.

REFERENCE MATERIALS 299 298

LIST OF REQUIREMENTS

PGPA Rule Reference Description Requirement Page

17AD(g) Letter of transmittal

17AI A copy of the letter of transmittal signed and dated

by accountable authority on date final text approved, with statement that the report has been prepared in accordance with section 46 of the Act and any enabling legislation that specifies additional requirements in relation to the annual report.

Mandatory iii

17AD (h) Aids to access

17AJ(a) Table of contents. Mandatory iv-vi

17AJ( b) Alphabetical index. Mandatory 306-319

17AJ(c) Glossary of abbreviations and acronyms. Mandatory 282-287

17AJ(d) List of requirements. Mandatory 300-305

17AJ(e) Details of contact officer. Mandatory ii

17AJ(f ) Entity’s website address. Mandatory ii

17AJ(g) Electronic address of report. Mandatory ii

17AD(a) Review by the accountable authority

17AD(a) A review by the accountable authority of the entity. Mandatory 2-9

17AD(b) Overview of the entity

17AE(1)(a)(i) A description of the role and functions of the entity. Mandatory 10-11

17AE(1)(a)(ii) A description of the organisational structure of the entity. Mandatory 12-18

17AE(1)(a)(iii) A description of the outcomes and programmes administered by the entity. Mandatory 22-23

17AE(1)(a)(iv) A description of the purposes of the entity as included in corporate plan. Mandatory 10-11

17AE(1)( b) An outline of the structure of the portfolio of the entity. Portfolio departments - Mandatory

n/a

17AE(2) Where the outcomes and programs administered by the entity differ from any Portfolio Budget Statement, Portfolio Additional Estimates Statement or other portfolio estimates statement that was prepared for the entity for the period, include details of variation and reasons for change.

If applicable, Mandatory.

n/a

REFERENCE MATERIALS 301 300

PGPA Rule Reference Description Requirement Page

17AD (c ) Report on the performance of the entity

Annual performance statements

17AD (c ) (i): 16F Annual performance statements in accordance with paragraph Mandatory 26-115 39(1)( b) of the Act and section 16F of the Rule.

17AD(c)(ii) Report on financial performance

17AF (1) (a) A discussion and analysis of the entity’s financial performance. Mandatory 116-119

17AF (1) ( b) A table summarising the total resources and total payments Mandatory 116-119, of the entity. 264-271

17AF (2) If there may be significant changes in the financial results If applicable, 116-119,

during or after the previous or current reporting period, Mandatory 264-271 information on those changes, including: the cause of any operating loss of the entity; how the entity has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the entity’s future operation or financial results.

17AD(d) Management and accountability

Corporate governance

17AG(2)(a) Information on compliance with section 10 (fraud systems) Mandatory iii

17AG(2)( b)(i) A certification by accountable authority that fraud risk Mandatory iii

assessments and fraud control plans have been prepared.

17AG(2)( b)(ii) A certification by accountable authority that appropriate Mandatory iii

mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place.

17AG(2)( b)(iii) A certification by accountable authority that all reasonable Mandatory iii measures have been taken to deal appropriately with fraud relating to the entity.

17AG(2)(c) An outline of structures and processes in place for the entity to Mandatory 201-205 implement principles and objectives of corporate governance.

17AG(2)(d) - (e) A statement of significant issues reported to Minister under If applicable, 208 paragraph 19(1)(e) of the Act that relates to non-compliance Mandatory with Finance law and action taken to remedy non-compliance.

REFERENCE MATERIALS 301 300

PGPA Rule Reference Description Requirement Page

External scrutiny

17AG(3) Information on the most significant developments in external scrutiny and the entity’s response to the scrutiny. Mandatory 209-212

17AG(3)(a) Information on judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the entity.

If applicable, Mandatory

216

17AG(3)( b) Information on any reports on operations of the entity by the Auditor-General (other than report under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman.

If applicable, Mandatory 209-215

17AG(3)(c) Information on any capability reviews on the entity that were released during the period. If applicable, Mandatory

213-214

Management of human resources

17AG(4)(a) An assessment of the entity’s effectiveness in managing and developing employees to achieve entity objectives. Mandatory 228-232

17AG(4)( b) Statistics on the entity’s APS employees on an ongoing and non-ongoing basis; including the following: • Statistics on staffing classification level; • Statistics on full-time employees; • Statistics on part-time employees; • Statistics on gender; • Statistics on staff location; • Statistics on employees who identify as Indigenous.

Mandatory 225-237

17AG(4)(c) Information on any enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999.

Mandatory 233-237

17AG(4)(c)(i) Information on the number of SES and non-SES employees covered by agreements etc identified in paragraph 17AG(4)(c). Mandatory 234-237

17AG(4)(c)(ii) The salary ranges available for APS employees by classification level. Mandatory 272-275

17AG(4)(c)(iii) A description of non-salary benefits provided to employees. Mandatory 237

17AG(4)(d)(i) Information on the number of employees at each classification level who received performance pay. If applicable, Mandatory

236-237

REFERENCE MATERIALS 303 302

PGPA Rule Reference Description Requirement Page

17AG(4)(d)(ii) Information on aggregate amounts of performance pay If applicable, 236-237 at each classification level. Mandatory

17AG(4)(d)(iii) Information on the average amount of performance payment, If applicable, 236-237 and range of such payments, at each classification level. Mandatory

17AG(4)(d)(iv) Information on aggregate amount of performance payments. If applicable, 236-237 Mandatory

Assets management

17AG(5) An assessment of effectiveness of assets management where If applicable, 246

asset management is a significant part of the entity’s activities. Mandatory

Purchasing

17AG(6) An assessment of entity performance against the Mandatory 242-243

Commonwealth Procurement Rules.

Consultants

17AG(7)(a) A summary statement detailing the number of new contracts Mandatory 243 engaging consultants entered into during the period; the total actual expenditure on all new consultancy contracts entered into during the period (inclusive of GST); the number of ongoing consultancy contracts that were entered into during a previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

17AG(7)( b) A statement that “During [reporting period], [specified Mandatory 243

number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period, involving total actual expenditure of $[specified million]”.

17AG(7)(c) A summary of the policies and procedures for selecting Mandatory 242

and engaging consultants and the main categories of purposes for which consultants were selected and engaged.

17AG(7)(d) A statement that “Annual reports contain information Mandatory 243

about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.”

REFERENCE MATERIALS 303 302

PGPA Rule Reference Description Requirement Page

Australian National Audit Office access clauses

17AG(8) If an entity entered into a contract with a value of more than If applicable, n/a

$100,000 (inclusive of GST) and the contract did not provide Mandatory the Auditor-General with access to the contractor’s premises, the report must include the name of the contractor, purpose and value of the contract, and the reason why a clause allowing access was not included in the contract.

Exempt contracts

17AG(9) If an entity entered into a contract or there is a standing offer If applicable, n/a

with a value greater than $10,000 (inclusive of GST) which has Mandatory been exempted from being published in AusTender because it would disclose exempt matters under the FOI Act, the annual report must include a statement that the contract or standing offer has been exempted, and the value of the contract or standing offer, to the extent that doing so does not disclose the exempt matters.

Small business

17AG(10)(a) A statement that “[Name of entity] supports small business Mandatory 242-243 participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.”

17AG(10)( b) An outline of the ways in which the procurement practices Mandatory 242-243 of the entity support small and medium enterprises.

17AG(10)(c) If the entity is considered by the Department administered by Mandatory 242-243 the Finance Minister as material in nature—a statement that “[Name of entity] recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website.”

Financial statements

17AD(e) Inclusion of the annual financial statements in accordance Mandatory 128-193

with subsection 43(4) of the Act.

REFERENCE MATERIALS 305 304

PGPA Rule Reference Description Requirement Page

17AD(f ) Other mandatory information

17AH(1)(a)(i) If the entity conducted advertising campaigns, If applicable, 244

a statement that “During [reporting period], the Mandatory [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.”

17AH(1)(a)(ii) If the entity did not conduct advertising campaigns, If applicable, n/a

a statement to that effect. Mandatory

17AH(1)( b) A statement that “Information on grants awarded If applicable, 247

to [name of entity] during [reporting period] is available Mandatory at [address of entity’s website].”

17AH(1)(c) Outline of mechanisms of disability reporting, including Mandatory 231

reference to website for further information.

17AH(1)(d) Website reference to where the entity’s Information Mandatory 279

Publication Scheme statement pursuant to Part II of FOI Act can be found.

17AH(1)(e) Correction of material errors in previous annual report. If applicable, 258-263 Mandatory

17AH(2) Information required by other legislation. Mandatory 238-241,

276-277, 248-251

REFERENCE MATERIALS 305 304

INDEX

A

abbreviations and acronyms, 282-7 ABF see Australian Border Force ABFC Ocean Shield, 4, 112 absenteeism, 241 accountable authority, iii, 201 statement by, 26 addr

ess and contact details, inside front cover advertising and market research, 244 2015-16 corrections, 263 aerial surv

eillance, 98-101

agency financial resource statement, 264-71 air passengers, 255 see also arrivals and departures Airline Liais

on Officer program, 7

airport clearances, 255 alternative places of detention see immigration detention facilities ANA

O see Australian National Audit Office annual performance statements compliance statement by accountable authority, 26 annual report contact officer, inside front cover annual reports, correction of material errors, 258-63 an

ti-corruption measures, 207 appointment booking services, 218, 220 arrivals and departures, 6, 45, 88 forecast numbers, 45 interventions, 88, 95 risk assessment of travellers, 7, 88 statistics, 2, 45, 48-9, 88-9, 92-3, 255 asbest

os, 8

Asia-Pacific Economic Cooperation Business Travel Card, 219 Asia-P

acific Regional Heads of Customs Administrations, 105 as

sets management, 246

Association of Southeast Asian Nations, 104 Audit Committee, 202, 203, 207 Auditor-General reports, 210-12 audits of financial stat ements, 122-5 internal, 206 see also A ustralian National Audit Office AusTender, 242, 243 Austrade (Australian Trade Commission), 223 Australia Day Awards, 221 Australian Airports Association, 52 Australian Border Force ABF 2020, 205 Commissioner’s remuneration, 233 Commissioner’s review of year, 2-9 Commissioner’s role, 201 Counter Terrorism Units, 7, 89 Enforcement Command, 8 Marine Unit employment provisions, 235 Maritime Border Command, 4, 98-103, 106 role and functions, 10 Strategic Border Command, 106 use of statutory powers, 211 A

ustralian Commission for Law Enforcement Integrity, 208 A

ustralian Customs and Border Protection Service determinations on former employ ee conditions, 233, 235-7 see also A ustralian Border Force Australian Customs and Border Protection Services Enterprise Agreement 2011-2014, 235, 236 Australian Defence Force personnel, 98 Australian economy, contribution to see Purpose 1

REFERENCE MATERIALS 307 306

Australian Federal Police, 4 independent auditor’s report on

Australian Human Rights Commission financial statements, 122-5 complaints, 216 reports, 210-12

reports, 209 Australian Trade Commission (Austrade), 223

Australian Information Commissioner Australian Trusted Trader Programme, see Office of the Australian 8-9, 39, 44, 47, 52, 55, 56

Information Commissioner Australian Visa Application Centres, 223 Australian maritime domain, 98 automated border processing see SmartGates Australian National Audit Office awards and recognition, 221 access provisions, 242

B

Bali Process on People Smuggling, 104 Bay Class vessels, 4 statistics, 29, 255

Border Control Agency Management border protection, 4, 7-9 Programme, 106-7 control and surveillance of the

border fees, charges and taxes maritime domain (performance

see revenue collection statements), 98-103, 111, 256

border management, 2, 6-9 people smuggling, 256

arrivals and departures, 255 threat detection (performance statements), cargo and mail, 2, 44, 90-5, 255 88-97

clearance processes, 6 Bridging E visas, 78

clearances, 255 Buchhorn, Wayne, 199

performance statements, 38-41, 44-51 business and corporate planning, 205

revenue collection, 38-41, 257

C

Cadena (taskforce), 8 case studies

calls per open hour handled, 221 Australian Trusted Trader

Cambodia, 108 Programme, 56-7

Canberra Airport, 7 civil maritime security cooperation, 112-13

Canberra Data Centres, 250 cocaine interception, 102-3

capability reviews, 213-14 crystal methamphetamine seizure, 96-7

capacity building in other General Cancellation Network, 84-5

countries, 73, 75, 106-9 illicit cigarettes detection, 42-3

Cape Class vessels, 99 permanent residence pathway

cargo, 2, 90-5, 220, 255 for New Zealand citizens, 64-5

REFERENCE MATERIALS 307 306

protection against family violence within the migran t community, 70-1 SmartGates, 50-1 student visa programme growth, 36-7 Syrian and Iraqi refugees, 76-7 c

ash movements, 89 Channel Strategy 2017-20, 218, 220 Child Protection Panel, 5, 79, 212 Child Safeguarding Framework, 5, 79 children Child places, 31, 254 protection of, 5, 79, 212 China

, visitors from, 4, 30 cigarettes see illicit tobacco seizures citizenship evidence application form, 219 performance statements, 66-71 promotion of, 66-7 requirements, 66 statistics, 2, 66, 67, 68-9, 255 citiz

enship appointment booking service, 218, 220 civil litig

ation see court cases civil maritime security cooperation, 112 client experience research, 218 client service, 218-24 client contact statistics, 257 reporting to clients, 32 service centres, 221 coc

aine interception, 102 cohesive society, 58-64 collaboration contribution to economy (performance statements), 52-7 partners within and outside Australia (performance statements), 104-13 C

omcare notifications, claims and investigations, 240-1 C

ommissioner, Australian Border Force see under Australian Border Force

Committee for Economic Development of Australia, 60 C

ommonwealth Fraud Control Framework 2014 compliance, iii, 207 C

ommonwealth Grant Rules and Guidelines, 2 47 Commonwealth Ombudsman, 210, 216 Commonwealth Procurement Rules, 242, 243 Commonwealth Risk Management Policy, 205 community engagement, 224 Community Proposal Pilot, 72-3 Community Support Programme, 61, 73 compensation claims, 216 complaints handling DIBP, 216 OMARA, 27 8 Compliance Monitoring Programme, 44-5 compliance with border policies see border management; border protection compliance with immigr

ation system,

78, 79, 83, 89-90, 95, 256 C onference of Asia Pacific Express Carriers, 52 C

onnell, Jenet, 198 consultants, 243 contact details, inside front cover Continuous Survey of Australia’s Migrants, 31, 35 con

traband, 89, 90-1 corporate governance, 196-208 governance structure, 201-2 risk, fraud and integrity measures, 206 senior executives, 197-200 senior management committees, 201-4 SES remuneration, out? statement of main governance practices, 196

Corporate Plan 2016-17, 205 performance criteria, 27 purposes and PBS programmes map, 23

REFERENCE MATERIALS 309 308

correction of material errors in previous annual reports, 258-63 corruption pr

evention and

management, 207-8 coun ter-terrorism initiatives, 99, 101 Counter-Terrorism Legislation Amendment

(Foreign Fighters) Act 2014, 209 C ounter Terrorism Units, 7, 89

court cases, 216

credit card use, 211 cruise ships, 6 crystal methamphetamine (ice) seizure, 96 Customs Brokers and Forwarders Council of Australia, 52 customs duty see revenue collection customs service see Australian Border Force cybersecurity, 212

D

Dandelion Program, 231 days of significance, 232 Department of Agriculture and Water Resources, 7 Departmen

t of Foreign Affairs and Trade, 107, 223 Departmen

t of Home Affairs, 9

Department of Human Services Indigenous Apprenticeships Programme, 232 departmen

tal office and post locations, 20-1 departures see arrivals and departures Deputies Committee, 202, 203 detector dogs, 255

detention see immigration detention digital services, 219 disability initiatives and services (employees with disability), 231 displaced per

sons see humanitarian

and refugee programmes div ersity in the workforce, 231, 232

drawbacks, 38-9, 41 see also revenue collection drug

s see illicit drug detections Dutton, Hon Peter, 10 Duty Drawback Scheme, 38

E

ecologically sustainable development, 248-51 education market, 30 Education Visa Consultative Committee, 30, 52-3 Efficiency thr

ough Contestability

Programme, 213-14 electr onic lodgement see digital services

employees (Department) see staff employer obligations in employment of non-citizens , 79, 81

Energy Efficiency in Government Operations, 251 ener

gy performance, 251

enforcement activities for visa programmes see under visa programmes enforcement arm of department see Australian Border Force engagement see international engagement; stakeholder consultation and engagement English Languag

e Training Programme, 106

enterprise agreements, 233, 235-7 enterprise risks see risk management Entrepreneur visa, 4 Environment Protection and Biodiversity Conservation Act 1999, 248, 251 en

vironmental performance, 248-51

REFERENCE MATERIALS 309 308

ethical standards, 208 ethnic liaison officers, 224 Exclusive Economic Zone, 4 Executive Committee, 202, 203 Executive Level staff Executive Level Review, 228, 229, 230 leadership conversations, 208 remuneration see remuneration exempt contracts, 242 expenses for outcomes, 266-71

exports, 38, 46-7, 257 external scrutiny capability reviews, 213-14 complaints , 216 FOI requests, 217 judicial and administra tive tribunal decisions, 216 parliamentary commit tee reports, 215 reports by external bodies, 209-12

F

Fair Work Commission, 216, 233 Family stream, 31, 61 places, 31, 254 f

amily violence, protection against, 70 Federal Chamber of Automotive Industries and Shipping Austr alia Ltd, 52 Fernandez, Maria, 198 financial performance 2015-16 corrections, 258-62 assets and liabilities, 117 audit report, 122-5 expenses for outcomes, 266-71 financial res ource statement, 264-5 operating result, 116 report, 116-19

financial statements, 121-93 Financial Statements Sub-Committee, 203 firearm detections at border, 2, 91, 255 fishers, illegal, 98-101, 256 fraud control, 207 statement of compliance, iii F

reedom of Information Act 1982, 242, 279 freedom of information requests, 217 Freight and Trade Alliance, 52 Functional and Efficiency Review, 213 functions (roles and functions) ABF, 10 department , 10-11, 19

G

General Cancellation Network, 84 glossary, 288-99 governance corporate see corporate governance framework for managing assets, 246 WHS, 238

government advertising, 211, 244 Government Design Awards, 221 grants, 247 green initiatives, 248-9 green lease schedule management, 249

REFERENCE MATERIALS 311 310

H

Hawke, Hon Alex, 10 health screening, 35 heritage strategy, 251 high-risk vessels, 92 human resources management, 225-37 see also staff

human rights reports, 209-10 humanitarian and refugee programmes, 3, 61 performance statements, 72-7 places, 72, 74, 75 visas granted, 72, 255

I

ice (crystal methamphetamine) seizure, 96 illegal firearm detections, 2, 91, 255 illegal maritime arrivals, 5 legacy caseload applications determined, 73, 75, 255

see also non-citizens; people smuggling illegal, unregulated and unreported fishing, 98-101

illegal foreign fishers taken into detention, 256 illeg

al workers, 8, 79, 81, 256 illicit drug detections, 2, 90, 96, 98, 102, 255 illicit tobacco seizures, 2-3, 42, 91, 255 ImmiAccount, 219 immigration detention, 6 Detention Capability Review, 5, 213 people in (statistics), 256 removal of non-citizens, 78 reports on, 210-11, 212 immigr

ation detention facilities, 6, 82 Villawood IDF heritage precinct, 251 immigr

ation status resolution, 5-6, 78, 82 import processing charges see revenue collection imports, 38, 44-5, 46-8, 92, 257 in-person services, 220 independent auditor’s report, 122-5 India, 73, 106, 112 Indigenous Australians Indigenous Apprenticeships Programme, 232

Indigenous businesses (procurement from), 243 individual fle

xibility arrangements, 233, 235 Indonesian Coast Guard, 106 industrial action, 233 Industry Summit 2016, 52 information and communications technology software testing, 231 sustainability initia tives, 250 Information Publication Scheme, 279 Infringement Notice Scheme, 45 Integrity Framework, 208 internal audit arrangements, 206 International Capacity Building Programme, 73 in

ternational education, 30 international engagement Mutual Recognition Arr angements, 9, 44 performance statements, 52-7, 104-13 see also collabor ation; regional capacity building; and names of specific international organisations International Organization for Migration, 107 international travellers see arrivals and departures In

ternet home page, inside front cover interpreter services, 220-1, 222, 257 Iraqi refugees, 3, 72, 75, 76, 255

REFERENCE MATERIALS 311 310

J

joint operations, 4 Joint Working Group on Transnational Crime, 106

judicial decisions, 216

K

Kendall review of OMARA, 278 key performance indicators see Strategic Performance Measures analysis and results

knowledge management system, 221

L

labour market, 30, 62, 63 leadership programmes, 208, 230 Legal Services Directions 2005, 216, 245 legal services expenditure, 245

legislative framework, 19 letter of transmittal, iii litigation see court cases Long-Term Strategic Skills List, 31

M

mail items inspected, 44, 90, 91, 255 Making Children Safer report, 212 Malaysia, 106 Manus, PNG see Papua New Guinea marine pollution, 99 Marine Unit employment provisions (ABF), 235-7 M

aritime Crew and Transit visas, 254 maritime security operations, 98-103 market research, 244 memoranda of understanding with Cambodia for refugee resettlement, 108 with government child welfare authorities, 79-80 Migration Act 1958, 210, 216 report on OMARA administration, 276-8

migration agents, 276-8 disciplinary action against, 277 disciplinary action against (2015-16 corr ections), 263 Migration Programme, 30-6, 58-64 community vie ws, 60 planning lev els, 33, 63 reports on, 31, 60, 62 results, 33-5 statistics, 2, 29, 30, 31, 71, 254 see also visa programmes; and names of specific visas Minist

erial Advisory Council on Skilled Migra tion, 52-3 Ministers, 10 Mutual Recognition Arrangements, 9, 44

REFERENCE MATERIALS 313 312

N

National Australian Built Environment Rating System (NABERS), 249 N

ational Committee on Trade Facilitation, 52 National Passenger Facilitation Committee, 52 N

ational Sea Passenger Facilitation Committee, 52 N

auru, 5, 107-8, 110

New Zealand citizens, permanent residence pathway for, 64 N

ewton, Mandy, 199 Noble, Rachel, 199 non-citizens, unlawful see unlawful non-citizens non-salary benefits, 237 notifiable incidents (WHS), 241

O

Ocean Shield, 4, 112 Oceania Customs Organisation, 104 office and post locations, 20-1 Office of the Australian Information Commissioner complaints , 216 reports, 209 Office of the C

ommonwealth Ombudsman

complaints , 216 reports, 210 Office of the Migr

ation Agents

Registration Authority, 276-8 2015-16 annual report corrections, 263 review of, 278 offshor

e processing centres, reports on, 211 Ombudsman, 210, 216 Operation Safe Centres, 6 Operation Sovereign Borders, 4-5, 98, 104 Operational Requirements Group, 202, 204 Operational Tasking and Coordination Group, 202, 204 or

ganisational structure, 12-18

Outcome 1 financial res ources summary, 264-7 financial res ources summary 2015-16 corrections, 258, 259-60 performance statements see Str ategic Performance Measures analysis and results

Outcome 2 financial res ources summary, 264-5, 268-9 financial res ources summary 2015-16 corrections, 258, 261 performance statements see Str ategic Performance Measures analysis and results

Outcome 3 financial res ources summary, 264-5, 270-1 financial res ources summary 2015-16 corrections, 258, 262 performance statements see Str ategic Performance Measures analysis and results

outcome and program structure, 22-3, 27 Outgoing Passenger Card, 6 outlaw motorcycle gangs, 8 Outram, Michael, 197 overseas posts management arrangements, 223

REFERENCE MATERIALS 313 312

P

Pacific Immigration Directors Conference, 104 P

acific Maritime Domain Awareness Workshop, 104-5 P

apua New Guinea, 5, 106, 107-8, 110 parliamentary committee reports, 215 partnerships partner agencies , 28 performance statements, 52-7 see also stak eholder consultation and engagement passenger movement charges see revenue collection passenger movements see arrivals and departures pas

senger name record data, 209 patrol activities, 98-103, 256 people smuggling, 5, 98, 104 see also illegal maritime arrivals People Strategy 2020, 229 performance environmental, 248-51 financial performance summary , 116-19 review by Secretary and Commissioner, 2-9 snapshots, 29 , 59, 87 statements see under Purposes see also s ervice standards performance pay, 236 permanent residence pathway for New Zealand citizens, 64 P

erth Immigration Residential Housing, 6 Plaintiffs M96A & Anor v Commonwealth & Anor [2017] HCA 16, 216 plans and planning business plans, 205 fraud control, 207 leadership plan, 230

Portfolio Budget Statements outcomes and programs, 27 Programme performance statements see under Purposes Programmes and performance measures map , 23 privacy assessments (OAIC), 209 procurement, 242-7 Productivity Commission Inquiry Report on Migrant Intake into Australia, 31, 60 pr

ogrammes performance statements see under Purposes structure, 23, 27 pr

osecutions, 95 Protected Industrial Action, 233 protection of children see children protection visas, 72-3, 219 psychosocial injuries in the workplace, 238 Public Governance, Performance, and Accountability Act 2013, iii, 22, 201, 206, 2 42 notification requirements, 208 statement by accountable authority concerning annual performance statements, 26

Public Service Act 1999 determinations, 233, 234, 235-6 pur

chaser-provider arrangements, 223 purchasing, 242-7 Purpose 1: Manage the movement of people and goods t o contribute to a strong economy, 11, 205 performance criteria, 27 performance snapshot, 29 performance summary, 28 Strategic Performance Measures analysis and results, 30-5, 38-41, 44-9, 52-5 Str

ategic Performance Measures case studies, 36, 42, 50, 56

REFERENCE MATERIALS 315 314

Purpose 2: Manage the movement and stay of people to contribute to a cohesive society, 11, 205 performance criteria, 58 performance snapshot, 59 performance summary, 58 Strategic Performance Measures analysis and results, 60-3, 66-9, 72-5, 78-83 Strategic Performance Measures case studies, 64, 70, 76, 84

Purpose 3: Manage the border to contribute to a safer, secure Australia, 11, 205 performance criteria, 86 performance snapshot, 87 performance summary, 86 Strategic Performance Measures analysis and results, 88-95, 98-101, 104-11 Strategic Performance Measures case studies, 96, 102, 112

R

RAND report, 213 recruitment, 232 red tape reduction, 30 refugee resettlement, 3, 107-11 country resettlement rankings, 72, 75 performance statements, 72-7 Syrian and Iraqi refugees, 3, 72, 75, 76, 255 r

egional capacity building, 73, 75, 106-9 Regional Cooperation Arrangement (Indonesia), 107 R

egional Cooperation Agreement on Combatting Piracy and Armed Robbery against Ships in Asia, 104 R

egional Illicit Tobacco Enforcement Package, 105-6 r

egional processing arrangements, 5, 107-8, 110 R

egional Skills Development Programme, 106 regulatory activities for visa programmes see under visa programmes

rehabilitation management, 238 remuneration classification levels and salary rates, 233-4, 272-5 SES, 234 R

epublic of Nauru see Nauru resettlement of refugees see refugee resettlement resource statement (DIBP), 264-71 revenue collection, 257 performance statements, 38-41 r

eviews and reports see external scrutiny risk assessment of travellers, 7, 88 Risk Committee, 202, 204, 206 risk management, 206 role and functions ABF, 10 department , 10-11, 19 Royal Commission into Institutional Responses to Child Sexual Abuse, 212

REFERENCE MATERIALS 315 314

S

Safe Haven Enterprise visas (SHEVs), 73 salaries see remuneration sea passengers see arrivals and departures Secretary remuneration, 233 role, 201 Secretary’s and Commissioner’s review, 2-9

section 24 of the PS Act, 233, 234, 235-6 self-service see digital services Senior Executive Service development strategy, 230 headcount and g ender, 227 leadership conversations, 208 remuneration, 234 s

enior executives, 197-200 senior management committees, 199-204 service centres, 221 client contact statistics, 257 s

ervice delivery partners, 223 service-level agreements with other agencies, 223 see also memoranda of understanding service standards, 222 ship arrivals and departures cruise ships clearance processes, 6 statistics, 255 Short T

erm Skilled Occupation List, 31 significant days, 232 Simplified Student Visa Framework, 3-4, 30 Skill stream, 4, 31, 33 employment rate of migrants, 35 places, 31, 33, 254 Skilled Migr

ation Officials Group, 53

skilled occupations lists, 31, 53 small business participation in procurement, 242-3 SmartG

ates, 6, 44, 50

clearances, 255

social cohesion, 58-64 Sovereign Borders see Operation Sovereign Borders Special C

ategory (subclass 444) visa, 254 Special Eligibility stream, 31, 254 Special Humanitarian Programme, 72 see also humanitarian and refugee programmes Sri Lanka, 73, 106, 112 staff, 257 employment arrangements, 233 leadership programmes, 208, 230 location, 227 non-salary benefits, 237 performance pay, 236-7 recruitment, 232 salaries, 233-4, 272-5 statistics, 225-7, 257 talent management, 228, 229 training and development, 208, 228, 230 unscheduled absences, 241 work health and safety, 238-41 workforce diversity, 231, 232 workforce planning, 228, 229 stak

eholder consultation and engagement, 52-5, 66-7 see also collabor ation; international engagement Statement of Commitment, 231 statistics (years at a glance), 254-7 Status Resolution Programme, 78 see also immigration status resolution Str

ategic Assurance Programme, 206 Strategic Command Group, 202, 204 Strategic Performance Measures mapped to PB S outcome and programmes, 23

REFERENCE MATERIALS 317 316

Strategic Performance Measures analysis and results SPM 1.1: Austr alia’s visa programmes are responsive to the needs of the economy , 30-6

SPM 1.2: The collection of border revenue is managed and enhanced, 38-43

SPM 1.3: Seamless bor der management facilitates the flow of legitimate travellers and goods, 44-51 SPM 1.4: Effective partnerships both within and outside Austr alia build a strong econom y, 52-7 SPM 2.1: Austr alia’s visa programmes provide a strong foundation for social cohesion, 60-5

SPM 2.2: Austr alian citizenship is valued, 66-71

SPM 2.3: Austr alia contributes to the global manag ement of refugees and displaced populations , 72-7

SPM 2.4: The integrity of visa programmes is strengthened by effective regulatory and enfor cement activities, 78-85 SPM 3.1: Threats are detected before, at and after the border, 88-97 SPM 3.2: The border is strengthened through the control and surveillance of the maritime domain, 98-103 SPM 3.3: Collaboration with partners within and outside A ustralia impro ves border security, 104-13 Strategic Tasking and Coordination Group see Operational Tasking and Coordination Group Strategy 2020, 205 Streamline Services Project, 221 Strongim Gavman Program, 107 student visa programme growth, 36 student visas, 3-4, 30, 36, 254 statistics, 30, 34 S

ydney Service Centre, 221, 222 Syrian refugees, 3, 72, 75, 76, 255

T

talent management, 228, 229, 230 Tamil Nadu, 73 Taskforce Cadena, 8 Telecommunications (Interception and Access) Act 1979, 210 T

emporary Activity visa programme, 61, 219 temporary protection visas (TPVs), 5, 73-4 Temporary Skills Shortage visa, 31 temporary visa programmes, 2, 30, 33-4, 60-1 compliance with, 78 , 83, 95 temporary visas granted, 60, 63, 254 T

emporary Work (Skilled) (subclass 457) visas, 30-1, 34, 53, 254

TIS National services, 220-1, 222, 257 Torres Strait Marine Capability, 4 Tourism Visa Advisory Group, 52 trade and customs see border management; cargo; exports; imports; revenue collection tr

afficking in persons see people smuggling training and development (staff ), 208 translating and interpreting services, 220-1, 222, 257 turtles

, 99

REFERENCE MATERIALS 317 316

U

unaccompanied minors, 80 undeclared currency, 89 United Nations High Commissioner for Refugees country resettlement rankings, 72, 75 U

nited States refugee resettlement arrangement, 107

unlawful non-citizens location and departures, 8, 78, 83, 256 performance statements, 82 uns

cheduled absence management, 241

V

vessel risk assessment, 92 vessels operated by ABF, 4, 98-100, 102-3 Villawood Immigration Detention Facility, 251 visa applications application process, 219 health screening, 35 police clearances , 61 risk assessment of travellers, 7, 88 service standards, 33-4 see also and names of specific visas visa cancellations and refusals, 8, 32, 73, 78-9, 88, 95, 256 vis

a entitlement verification (VEVO) online system, 79, 81

visa programmes, 3-4 compliance with, 78 , 79, 83, 89-90, 95 contribution to the economy (performance statements), 30-7 integrity, 7-8, 73-4, 78-85 service standards, 33-5 social cohesion (performance statements), 60-5 visas granted, 34, 60, 61, 254 visitor programme, 4, 30, 34 Visitor (subclass 600) visa, 4, 219, 254

REFERENCE MATERIALS 319 318

W

websites address, inside front cover client experience research, 218 W

ickham Point Detention Centre, 6 work health and safety, 238-41 Work Health and Safety Act 2011 due diligence framework, 238

workers’ compensation, 239-41 workforce see staff working holiday makers, 254 World Customs Organization, 105-6

Z

Zakharoff, Kaylene, 199

REFERENCE MATERIALS 319 318

320