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Department of Foreign Affairs and Trade—Report for 2019-20


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ANNUAL REPORT

ANNUAL REPORT

OUR POSTS AND PEOPLE

Lima

Buenos Aires

Santiago

Auckland

Port Moresby

Lae

Jakarta

Singapore Bandar Seri Begawan

Manila

Koror

Taipei*

Tokyo

Seoul

Osaka

Kuala Lumpur

Yangon

Hanoi

Hong Kong

Guangzhou

Chengdu Shanghai

Beijing

Ulaanbaatar

Shenyang

Ho Chi Minh City

Phnom Penh

Vientiane

Bangkok

Phuket

Colombo

Chennai

Mumbai

New Delhi

Islamabad

Kabul Tehran

Baghdad

Kuwait City

Dubai Abu Dhabi

Doha Riyadh

Amman

Beirut

Nicosia

Athens

Malta

Lisbon

Rabat

Accra

Abuja Addis Ababa

Nairobi

Port Louis

Harare

Pretoria

Madrid

Rome

Vatican City

Milan

Ankara

Istanbul

Belgrade

Zagreb Vienna

Berlin

Copenhagen

Stockholm

Warsaw

Kyiv

Moscow

Frankfurt

Brussels

The Hague

Dublin

London

Paris Geneva

Çanakkale Ramallah*

Tel Aviv

Cairo

Kathmandu

Kolkata

Dhaka

Bali

Surabaya

Makassar

Dili

Wellington

Noumea

Hobart

Melbourne

Adelaide

Perth

Darwin

Brisbane

Sydney

Canberra

Port Vila

Nauru

Tarawa

Pohnpei

Honiara

Suva

Nuku’alofa Rarotonga

Apia

Funafuti

São Paulo

Brasilia

Bogotá

Mexico City

Houston

Washington DC

New York

Chicago

Los Angeles

Honolulu

San Francisco

Toronto Ottawa

Port of Spain

Atlantic Ocean

Pacific Ocean

Indian Ocean

Southern Ocean

Arctic Ocean

5,988

120 9

2,106

staff

We have

2,939 are overseas

including

posts in 84 countries

locations across Australia

locally engaged staff

DFAT posts

State and territory offices

Torres Strait Treaty Liaison Office

Austrade-managed posts providing consular assistance

Our posts include embassies, high commissions, multilateral missions, consulates-general, consulates and representative offices*

We also managed 48 consulates headed by an honorary consul

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HIGHLIGHTS 2019-20

• Elevated our relationship with India, announcing a Comprehensive Strategic Partnership

• Adapted Pacific Step-up, including the newly launched Australian Infrastructure Financing Facility for the Pacific and Pacific labour mobility, to support Pacific island countries to respond to COVID-19

• Further enhanced our relationship with Vietnam, including work on an Australia-Vietnam Enhanced Economic Engagement Strategy

• Drove international cooperation on counter-terrorism in our region and beyond

• Challenged disinformation and malicious cyber activity, and worked to support an open, free and secure cyberspace

• Enhanced international participation in measures to counter human trafficking

• Ratified free trade agreements with Hong Kong, Indonesia and Peru and concluded negotiations on the text of the Regional Comprehensive Economic Partnership

• Used our global network to maintain critical supply chains during the pandemic

• Helped Australian businesses to access commercial opportunities overseas and assisted them to respond to bushfires and COVID-19

• Launched Partnerships for Recovery to guide Australia’s whole-of-government development efforts in responding to COVID-19

• Delivered urgent humanitarian assistance to Fiji, Solomon Islands, Tonga and Vanuatu after Tropical Cyclone Harold

• Pivoted gender equality programming to meet the immediate needs of women and girls in response to COVID-19

Deliver an effective and responsive development assistance program

Keep Australia and Australians safe and secure

Promote a stable and prosperous Indo-Pacific

Pursue our economic, trade and investment opportunities

• Delivered a comprehensive audit of Australia’s multilateral engagement

• Kept human rights at the forefront of our work, including through our engagement at the United Nations and in response to COVID-19

• Partnered with other countries to secure an independent, impartial and comprehensive evaluation into COVID-19

• Established two new posts, in Koror (Palau) and Rarotonga (Cook Islands)

• Built a prefabricated chancery in Sydney for our post in Rabat (Morocco) using Australian know-how and Australian jobs

• Enabled remote working and rapid response support for whole-of-government staff across the global network

• Delivered the largest and most complex consular operation in our history, under extensive lockdown conditions, helping over 26,600 Australians return

• Provided accurate and reliable information to help Australians stay informed and prepared while overseas

• Helped Australians affected by bushfires and COVID-19 with passports for identity and travel

Support Australians overseas

Provide a secure and effective overseas presence

Advance global cooperation

COVID-19 RESPONSE

As the impact of COVID-19 was felt in Australia and around the world, we pivoted our operations to support a comprehensive, agile and multi-faceted Australian Government response—often in challenging local lockdown circumstances. DFAT’s global network and offices in every state and territory were vital to supporting Australians stranded overseas and helping thousands to return to Australia. Our international expertise helped deliver critical medical supplies for Australians and for our Indo-Pacific neighbours.

Supporting Australians overseas

Supported

Responded to

26,600+ 250,000+ Australians to COVID-19-related return from 90 countries on phone calls acrossthe diplomatic network likes, retweets, comments 26m+ 315 commercial flights—63 directly including 75,000+ or shares of DFAT to our emergency social media content facilitated by government and consular call units during COVID-19 Supporting Australians at home

Diplomatic efforts in

300+ Led efforts to collaboration with other DFAT staff and suspend Australian agencies helped to secure contractors deployed tariffs on products, critical PPE and medical across the APS to such as medical supplies including over boost frontline devices and PPE 40% of all ventilators government services in Australian ICUs Supporting Australia’s economy and businesses Supported delivery of Australia’s economic recovery package through the COVID-19 Relief and Recovery Fund $1 billion Worked with Export Finance Australia $500m to establish the COVID-19 Export Capital Facility to ensure trade-exposed Australian businesses affected by COVID-19 can access vital financing Supporting our Indo-Pacific neighbours Working with our neighbours in the Pacific facilitated movements of over 2,000 people and 10 tonnes of essential and Timor-Leste, Government’s visa changes to Supported the Australian enable approximately 8,000 Pacific workers to remain $280m in Australia for a further supplies to 14 countries redirected to health security, 12 months to continue workingstability and economic recovery to support themselves and critical through the essential in the Pacific and Southeast Asia industries, including redeploying services and around 3,500 workers humanitarian corridor

¥

Australian Government

Department of Foreign Affairs and Trade

Secretary

If September 2020

Senator the Hon Marise Payne Minister for Foreign Affairs Minister for Women

Senator the Hon Simon Birmingham Minister for Trade, Tourism and Investment

File Number: 20/ 12165#1

I am pleased to present to you the Annual Report of the Department of Foreign Affairs and Trade for the financial year 2019-20.

The report has been prepared for the purposes of section 46 of the Public Governance, Peiformance and Accountability Act 2013, which requires that an annual report be given to the entity's responsible ministers for presentation to the Parliament.

The report contains information as required under other applicable legislation including the Work Health and Safety Act 2011, the Commonwealth Electoral Act 1918 and the Environment Protection and Biodiversity Conservation Act 1999.

As required by sections 10 and 17AG(2)(b) of the Public Governance, Peiformance and Accountability Rule 2014, I certify that I am satisfied that the department:

• prepared fraud risk assessments and fraud control plans • had in place appropriate fraud prevention, detection, investigation and reporting mechanisms that met its specific needs, and • took all reasonable measures to appropriately deal with fraud.

Frances Adamson

R G Casey Building, Barton ACT 0221 www.dfat.gov.au

ISSN 1032-2019 (print) ISSN 1839-5147 (online) ISBN 978-1-74322-549-3 (book, softcover) ISBN 978-1-74322-550-9 (pdf) ISBN 978-1-74322-551-6 (web page)

Copyright

© Commonwealth of Australia 2020

The material in this publication is licensed under a Creative Commons Attribution 4.0 International Licence (creativecommons.org/licenses/ by/4.0/), with the exception of:

• the Commonwealth Coat of Arms

• the Department of Foreign Affairs and Trade logo, and any other material protected by a trademark

• any image where credit is not directly provided to the Department of Foreign Affairs and Trade.

Creative Commons Attribution 4.0 International Licence is a standard form license agreement that allows you to copy, distribute, transmit and adapt this publication provided that you attribute the work. The full legal code for the licence (which includes any relevant licence conditions) is available on the Creative Commons website accessible by using this link: creativecommons.org/licenses/by/4.0/legalcode.

The Commonwealth’s preference is that you attribute this publication (and any material sourced from it) using the following wording:

Department of Foreign Affairs and Trade Annual Report 2019-20. © Commonwealth of Australia 2020. Licensed from the Commonwealth of Australia under a Creative Commons Attribution 4.0 International Licence.

Written requests for permission or enquiries should be emailed to: annualreport@dfat.gov.au

Third party copyright Some material in this Annual Report, made available under the Creative Commons Licence framework, may be derived from material supplied by third parties. In these instances, the work will be clearly labelled with the source of the original material. If a third party holds copyright in materials in the Annual Report, the copyright remains with that party and their permission may be required to use the material.

Use of the Coat of Arms The terms under which the Coat of Arms can be used are detailed on the website of the Department of the Prime Minister and Cabinet:

https://www.pmc.gov.au/resource-centre/government/ commonwealth-coat-arms-information-and-guidelines

Acknowledgements

Executive Editor Abby Rossiter

Coordinating Editors John Collins Michael L. Dean Shaun Ellmers Alicia Mollaun Tom Overton-Clarke Robyn Stern

Editorial Consultant Morris Walker

Indexer Michael Harrington

Website https://dfat.gov.au/about-us/publications/corporate/ annual-reports/Pages/annual-reports.aspx

Contact Inquiries about the annual report are welcome and should be directed to:

Executive Assistant to the First Assistant Secretary Executive Division Department of Foreign Affairs and Trade RG Casey Building, John McEwen Crescent Barton ACT 0221

Phone 02 6261 1111 Email annualreport@dfat.gov.au

Design and typesetting by Katherine Croft

Printing by CanPrint Communications

LETTER OF TRANSMITTAL

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CONTENTS

Our posts and people 2

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Letter of transmittal 7

OVERVIEWS 6HFUHWDU\·V*UHYLHZ 12

Departmental overview 16

REPORT ON PERFORMANCE Annual performance statement 21

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MANAGEMENT AND ACCOUNTABILITY The reform agenda 110

Our people 112

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Our performance 116

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([WHUQDO*DFFRXQWDELOLW\ 120

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FINANCIAL STATEMENTS Independent Auditor’s Report 127

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Financial Statements 132

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APPENDIXES $SSHQGL[****6WD੕QJ*RYHUYLHZ 202

Appendix 2: Executive remuneration 210

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REFERENCE MATERIAL *ORVVDU\*RI*DFURQ\PV**DEEUHYLDWLRQV*DQG*WHUPV 246

Index 249

•••••••••••••••• ••••••••••••••••• •••••••••••••••• ••••••••••••••••• ••••••••••••••••• •••••••••••••••••••• •

OVERVIEWS

12 | | 13

OVERVIEWS

DFAT ANNUAL REPORT 2019-20

Frances Adamson, Secretary Department of Foreign Affairs and Trade [DFAT/Thierry Nguyen Cuu]

SECRETARY’S REVIEW

COVID-19 has changed our world. We do not yet know its full impact, but already it is the most disruptive and multi-faceted crisis we have ever experienced. Our focus on the national interest has never been clearer. Our sense of purpose is strong. I am tremendously proud of our contribution to Australia’s COVID-19 response and recovery.

The department pivoted hard to drive Australia’s international engagement. We navigated strategic uncertainty to deliver complex agendas in fast-moving and unprecedented circumstances. We worked hard to keep Australians safe and help them return to Australia, secure vital medical and protective equipment and keep our businesses trading and our economy open. The extraordinary

conditions we confronted affected our ability to deliver against our performance measures. When we rate the department’s performance as ‘on track’ in this report it can reflect incremental progress, or holding the line against sliding backwards. In some cases—including because of COVID-19—progress has been more difficult and we have rated our performance as ‘partially on track’.

Staff across our network—in Australia and in challenging conditions around the world— undertook the largest and most complex consular operation in Australia’s history. Every post stayed open. Some operated with vastly reduced staff. Many of our staff sent their families home but stayed to keep delivering vital services. We pivoted staff in Canberra to support a global 24/7 operation, helping those most in need and working around the clock to deliver comprehensive, accurate and up-to-date information to Australians. Over 350,000 Australians returned—we supported over 26,600 to return from 90 countries on 315 flights. We helped governments from around the world support their nationals to leave Australia. Over 300 of our people redeployed across the public service, stepping up to new roles to help provide cross-government services to Australians.

While our consular and crisis response was in full swing, our strategic focus did not waver. Nor did our trade and economic advocacy. Our immediate actions helped Australian businesses navigate international supply chain disruptions, including through the International Freight Assistance Mechanism. We secured critical medical supplies and personal protective equipment for Australia’s frontline health workers. As one example, our global network helped secure over 40 per cent of ventilators in intensive care units across Australia.

Our strategic context is more uncertain than at any other time in living memory as the pandemic accelerates the trends identified in the 2017 Foreign Policy White Paper. Nations have turned inwards and divisions have sharpened. The competition for power and influence in our region has intensified.

I am proud of the work we do each and every day to defend, protect and prosecute Australia’s interests. We use every lever of influence at our disposal to achieve this objective—we negotiate rules and treaties that reflect Australian interests and values, we build coalitions to help support Australia’s goals on the global stage and cultivate relationships with key decision-makers. Our strongest relationships are in our region, the Indo-Pacific. Increasing tensions between the United States and China were exacerbated by COVID-19. This sharper strategic competition influenced developments in and beyond our

SECRETARY’S REVIEW

region, affecting relationships and regional and multilateral institutions. The department played a vital role at the centre of government in assessing and responding to these challenges.

In the Indo-Pacific, we upgraded the architecture of Australia’s most important relationships, establishing contemporary mechanisms for dialogue and to deliver new and deeper cooperation with partners including the United States, Japan, India, Indonesia, Vietnam and ASEAN. Our shared experience of a rapidly changing region has expanded the scope for collaboration, from the immediate COVID-19 crisis to the longer-term challenges of economic recovery, cyber and maritime security and infrastructure development. These stronger connections with our Indo-Pacific partners, grounded in converging interests and outlooks, reinforce Australia’s efforts to secure an open, inclusive and prosperous region.

As the pandemic spread, protectionist instincts sharpened around the world. One in every five jobs in Australia is trade-related. The global rules-based trading system is fundamental to Australian jobs and industry. We worked to develop new agreements and modernise trade rules on multiple fronts—through multilateral, regional and bilateral negotiations—to benefit Australian businesses and consumers and to build further pathways to economic recovery.

Our expanding network of free trade agreements is at the heart of this. Following several years of hard work, we ratified FTAs with Indonesia, Hong Kong, and Peru and concluded negotiations on the text of the Regional Comprehensive Economic Partnership (RCEP). We progressed negotiations on an FTA with the European Union and launched negotiations with the United Kingdom. In the World Trade Organization we played an important role in establishing an arrangement to help settle trade disputes. A functioning WTO dispute settlement mechanism has real consequences for Australia, as we saw in our historic win defending Australia’s tobacco plain packaging laws and our efforts to remove Canada’s long-standing discriminatory measures against Australian wine.

14 | | 15

OVERVIEWS

DFAT ANNUAL REPORT 2019-20

Through our Pacific Step-up, we strengthened the longstanding people-to-people, cultural, economic and security links between Australia and our Pacific family. We established new missions in Palau and the Cook Islands and signed a new partnership with Fiji based on family (vuvale in Fijian) principles of trust, respect and mutual support. We worked quickly to support our Pacific neighbours to prepare and respond to the pandemic. We established a humanitarian corridor to move essential supplies and personnel through the region, and reprioritised development assistance to address urgent health, economic and social needs in both the Pacific and Timor-Leste as part of our broader COVID-19 immediate response package.

Our reorientation of the development program in response to COVID-19 was fast and targeted. Our Partnerships for Recovery strategy delivered a rapid reprioritisation of our development and humanitarian program with a focus on health security, stability and economic recovery. We worked alongside our neighbours to enhance resilience and responses to health security issues. Our emphasis on gender equality and disability inclusion throughout our development programs remained strong.

Bilateral and regional relationships are at the centre of our international engagement, but we also draw strength from multilateral engagement. Our comprehensive audit of multilateral institutions considered Australia’s involvement in bodies in every area of global interaction. It is clear the multilateral system is under severe strain. But the audit affirmed the importance of these institutions to set standards and help solve problems that nations cannot address alone. This includes new threats. The pandemic has reinforced the importance of an open, free and secure cyberspace to Australians’ everyday lives and to our national prosperity. It has also highlighted the increasing use by some nations of ‘grey-zone’ tools of influence to achieve their strategic goals, such as disinformation campaigns, foreign interference, and trade and economic coercion. We will continue to work to build support for stronger international norms against these malign activities.

The disruptions wrought first by the bushfires and then by COVID-19 have challenged the

department. Like all Australians, DFAT staff have faced uncertainty and anxiety. But the crisis has revealed a strong, resilient department staffed by dedicated professionals. More than ever, I value the strength that comes from the diversity of our people. A confident, inclusive workplace culture empowers us to represent all of the Australian community we serve. And our culture has been further strengthened by an ambitious program of organisational reform across people management, IT, security, service delivery and overseas operations. This helped us pivot when we needed, to focus on immediate priorities without losing sight of longer term strategic objectives.

The year ahead The next twelve months will be at least as demanding as those just past. Our focus will be on economic recovery and the security of Australia and Australians. We will harness our global network to deliver outcomes that matter for Australian citizens and businesses alike. We will continue to work collaboratively, creatively and flexibly with like-minded nations to ensure our interests and universal values are protected and advanced in international rules and institutions. We are clear eyed about the challenges ahead. Australia will need to use its influence as a pivotal power in the Indo-Pacific region to advance our national interests. We will collaborate with partners bilaterally, regionally and in multilateral organisations on systems, rules and norms that protect our values and our people. And we will deliver a development program that supports economic, social and health security across our region, in the knowledge that Australia is safer, stronger and more prosperous when our neighbours are resilient and stable.

To keep delivering outcomes for government and world-class services for Australians, we will build on the lessons learnt from COVID-19, embracing the positive and learning from setbacks. We will make greater use of virtual tools and technology to work smarter and manage the challenges of COVID-19. In a tight resource environment, we will keep building on the gains from organisational reform and engage actively with risk in our management and in our strategic pursuit of Australia’s national interest.

SECRETARY’S REVIEW

COVID-19 and virtual diplomacy

Minister for Foreign Affairs Senator Marise Payne with ASEAN Foreign Ministers and the ASEAN Secretary-General discussing Australia’s cooperation with ASEAN to combat COVID-19 and to chart a course to economic recovery in the Indo-Pacific region [DFAT]

Our investment in recent years in advanced audiovisual technology supported the department to move quickly to new ways of working. We embraced virtual diplomacy and took full advantage of technology to ensure that we were able to keep pursuing Australia’s interests, despite global travel restrictions. This included international engagement on the response to the pandemic.

We supported ministers in high-level engagement with their counterparts across the globe, bilaterally and in regional and multilateral forums, including the first Australia-India Virtual Summit in June at

which Prime Ministers Morrison and Modi announced a Comprehensive Strategic Partnership.

Officials across our network used virtual tools to connect, advocate and cooperate. We engaged virtually with domestic stakeholders, including partnering with Austrade to deliver webinars to raise Australian businesses’ awareness and use of our free trade agreements. We also advanced work on trade agreements, including by holding the first round of negotiations with the United Kingdom virtually in June.

Minister for Trade, Tourism and Investment Senator Simon Birmingham meeting virtually with his counterparts from 10 ASEAN member states and Japan, Korea, China and New Zealand to discuss the Regional Comprehensive Economic Partnership Agreement [DFAT]

16 | | 17

OVERVIEWS

DFAT ANNUAL REPORT 2019-20

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DEPARTMENTAL OVERVIEW The global COVID-19 pandemic presents unprecedented challenges for Australia and the world. Against this uncertain background, the department’s

purpose remains clear and resolute: to make Australia stronger, safer and more prosperous, to provide timely and responsive consular and passport services, and to ensure a secure Australian Government presence overseas.

The department’s structure facilitates delivery of our core outcomes. The Secretary leads five deputy secretary-managed strategic groups and the Office of the Pacific to implement the department’s work in Australia and overseas. Our ambitious program of management reform and organisational change is enabling the department to be agile and responsive as we pursue the government’s agenda in Australia and overseas and deliver world-class services to Australians.

Our 2019-20 Corporate Plan outlined how the department will achieve its purpose, building on the strategic direction set in the 2017 Foreign Policy White Paper and continuing to support our Step-up in the Pacific. The plan also set out how we are working to shape our capability and engage with risk to ensure we are fit for purpose to protect Australia’s interests in the face of heightened global complexity and uncertainty. This provided a firm foundation from which we have reprioritised and pivoted to respond to the challenges of COVID-19.

COVID-19 will continue to have a profound impact on the department’s core business and Australia’s capacity to engage with key partners overseas for many years to come. Our leadership at home and abroad will be increasingly important to achieving Australia’s interests in security and prosperity at home and in our neighbourhood.

In 2019-20 we are rating our performance under very different circumstances to previous reporting periods. We are reviewing how we measure our performance in the future to take account of the longer term impacts of COVID-19.

This year’s Annual Performance Statement applies four ratings to the assessment of our work:

ACHIEVED

ON TRACK

PARTIALLY ON TRACK

We met the goal set out in the performance measure.

The activity is ongoing and we have made progress towards our goal.

We made progress towards the goal but not to the extent planned. This may be due to COVID-19 or other factors.

NOT ON TRACK We did not achieve our goal. The activity is ongoing but we have not made satisfactory progress towards our goal.

DEPARTMENTAL OVERVIEW

Figure 1 Corporate Plan priorities

Purpose

To make Australia stronger, safer and more prosperous, to provide timely and responsive consular and passport services, and to ensure a secure Australian Government presence overseas.

Portfolio Budget Statements Outcome 1

The advancement of Australia’s international strategic, security and economic interests including through bilateral, regional and multilateral engagement on Australian Government foreign, trade and international development policy priorities.

Promote a stable and prosperous Indo-Pacific Corporate Plan priority 1

Pursue our economic, trade and investment opportunities Corporate Plan priority 2

Keep Australia and Australians safe and secure Corporate Plan priority 3

PBS 1.1, 1.2, 1.3, 1.4, 1.5, 1.6 Page 23 PBS 1.1, 1.4 Page 39 PBS 1.1, 1.2, 1.3, 1.4 Page 51

Deliver an effective and responsive Advance global cooperation development assistance program Corporate Plan priority 4 Corporate Plan priority 5

PBS 1.2, 1.3 Page 59 PBS 1.1, 1.2, 1.3, 1.4, 1.6 Page 77

Portfolio Budget Statements Outcome 2

The protection and welfare of Austalians abroad and access to secure international travel documentation through timely and responsive travel advice and consular and passport services in Australia and overseas.

Portfolio Budget Statements Outcome 3

A secure Australian Government presence overseas through the provision of security services and information and communications technology infrastructure, and the management of the Commonwealth’s overseas property estate.

Support Australians overseas

Corporate Plan priority 6

Provide a secure and effective overseas presence Corporate Plan priority 7

PBS 2.1, 2.2 Page 88 PBS 1.1, 3.1, 3.2 Page 100

PBS 1.1 Foreign affairs and trade operations PBS 1.6 Public information services and public diplomacy

PBS 1.2 Official Development Assistance PBS 2.1 Consular services

PBS 1.3 Official Development Assistance - multilateral replenishments PBS 2.2 Passport services

PBS 1.4 Payments to international organisations PBS 3.1 Foreign affairs and trade, security and IT

PBS 1.5 New Colombo Plan PBS 3.2 Overseas property

*Department of Foreign Affairs and Trade Portfolio Budget Statements 2019-20 and Portfolio Additional Estimates Statements 2019-20

18 | | 19

OVERVIEWS

DFAT ANNUAL REPORT 2019-20

Secretary Frances Adamson

Executive Branch

Assistant Secretary / Chief Risk Officer Suzanne McCourt & Robert Fergusson

COVID-19 Coordination Unit Head of Office Cathy Raper

Internal Audit Branch Chief Auditor Samantha Montenegro

Global Cooperation, Development & Partnerships Group

Deputy Secretary Clare Walsh

People Division

Chief People Officer Daniel Sloper

Pacific Strategy

Deputy Head Kathy Klugman

Southeast Asia Division

First Assistant Secretary Julie Heckscher

Human Development & Governance Division

First Assistant Secretary Elizabeth Peak

Economic Growth & Sustainability Division

First Assistant Secretary Jamie Isbister

Multilateral Policy Division

First Assistant Secretary Justin Lee

International Security Division

First Assistant Secretary

Ambassador for Arms Control & Counter Proliferation Amanda Gorely

Ambassador for Cyber Affairs & Critical Technology

Tobias Feakin

Ambassador for People Smuggling & Human Trafficking Lucienne Manton

North Asia Division

First Assistant Secretary Elly Lawson

US and Indo-Pacific Strategy Division

First Assistant Secretary Craig Chittick

South and West Asia Division

A/g First Assistant Secretary Julia Niblett

Strategic Policy, Contestability & Futures Branch

Assistant Secretary Nigel Stanier

Humanitarian, NGOs & Partnerships Division

First Assistant Secretary James Gilling

Legal Division

Chief Legal Officer Simon Newnham

Global Counter Terrorism, Middle East & Africa Division

First Assistant Secretary Angela Macdonald

Ambassador for Counter-Terrorism Paul Foley

Australian Safeguards & Non-proliferation Office

Director General Robert Floyd

Consular & Crisis Management Division

First Assistant Secretary

George Mina/ Fiona Webster (A/g)

National Foundation for Australia-China Relations

Interim CEO Michaela Browning

Pacific Operations & Development

First Assistant Secretary Danielle Heinecke

Pacific Bilateral

First Assistant Secretary Gerald Thomson

Finance Division

Chief Finance Officer Murali Venugopal

Diplomatic Security Division

Chief Security Officer Minoli Perera

Office of the Chief Economist

Chief Economist Jenny Gordon

Trade, Investment & Business Engagement Division

First Assistant Secretary Elizabeth Ward

Regional Trade Agreements Division

First Assistant Secretary Elisabeth Bowes

Europe & Latin America Division

A/g First Assistant Secretary Dougal McInnes Diplomatic Academy

Executive Director Paula Ganly

Australian Passports Office

Executive Director Bridget Brill

Overseas Property Office & Services

Executive Director Suzanne Pitson

Protocol Branch

Chief of Protocol Kate Logan

Contracting & Aid Management Division

First Assistant Secretary Beth Delaney

Soft Power, Communications & Scholarships Division

First Assistant Secretary John Geering

Indo-Pacific Centre for Health Security

Head of Centre Robin Davies

Office of Development Effectiveness

Assistant Secretary Robert Christie

Ambassador for Gender Equality Julie-Ann Guivarra

Ambassador for Regional Health Security Stephanie Williams

Information Management & Technology Division

Chief Information Officer Tim Spackman

Trade, Investment & Business Engagement Group

Deputy Secretary Christopher Langman

Office of Trade Negotiations

First Assistant Secretary James Baxter

Chief Negotiator EU FTA Alison Burrows

Office of the Pacific

Head of Office Ewen McDonald

Indo-Pacific Group

Deputy Secretary Justin Hayhurst

International Security, Humanitarian & Consular Group

Deputy Secretary Tony Sheehan

Service Delivery Group

Deputy Secretary Penny Williams PSM

Figure 3 Organisational Chart as at 30 June 2020

The executive of the Department of Foreign Affairs and Trade

Figure 2 Foreign Affairs and Trade Portfolio Structure as at 30 June 2020

Minister for Foreign Affairs and Minister for Women Senator the Hon Marise Payne

Minister for Trade, Tourism and Investment Senator the Hon Simon Birmingham

Assistant Defence Minister and Minister for International Development and the Pacific The Hon Alex Hawke MP

Minister for Decentralisation and Regional Education and Minister Assisting the Minister for Trade and Investment The Hon Andrew Gee MP

Assistant Minister for Regional Tourism and Assistant Minister for Forestry and Fisheries Senator the Hon Jonathon Duniam

Department of Foreign Affairs and Trade

Secretary, Ms Frances Adamson

Australian Centre for International Agricultural Research

Chief Executive Officer, Professor Andrew Campbell, FTSE FAICD

Australian Secret Intelligence Service

Director-General, Mr Paul Symon AO

Export Finance Australia

Chair, Mr James Millar AM Managing Director and CEO, Ms Swati Dave

Australian Trade and Investment Commission

Chief Executive Officer, Dr Stephanie Fahey

Tourism Australia

Chair, Mr Bob East

Managing Director, Ms Phillipa Harrison

From left: Deputy Secretary Justin Hayhurst, Head of the Office of the Pacific Ewen McDonald, Deputy Secretary Clare Walsh, Secretary Frances Adamson, Deputy Secretaries Tony Sheehan, Penny Williams PSM and Christopher Langman [DFAT/Nathan Fulton]

DEPARTMENTAL OVERVIEW

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REPORT ON PERFORMANCE

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REPORT ON PERFORMANCE

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DFAT ANNUAL REPORT 2019-20

Government

Department of Foreign Affairs and Trade

I, Frances Adamson, as the accountable authority of the Department of Foreign Affairs and Trade,

present the 2019-20 annual performance statement of the Department of Foreigh Affairs and Trade,

as required under paragraph 39{1)(a) of the Public Governance, Performance and Accountability Act

2013 {PGPA Act). In my opinion, this annual performance statement is based on properly maintained records, accurately reflects the performance of the Department of Foreign Affairs and Trade, and complies with subsection 39(2) of the PGPA Act.

Frances Adamson

Secretary

Department of Foreign Affairs and Trade

... ~-~------

- - - - - - - - - - ·.. ..· ......

I I

ANNUAL PERFORMANCE STATEMENT PROMOTE A STABLE

AND PROSPEROUS INDO-PACIFIC Australia’s future is tied to the Indo-Pacific. This is the region where our interests are most directly affected and where we can have the greatest impact.

Before COVID-19, a profound transition was underway in a more complex and contested Indo-Pacific region. Australia’s 2017 Foreign Policy White Paper outlined a policy agenda to respond to this transition. Its settings and long-term priorities remain broadly appropriate, but COVID-19 has accelerated some trends and our strategic context is now characterised by greater uncertainty and economic fragility. We continue to pursue our vision of a region in which adherence to rules delivers lasting peace, where the rights and sovereignty of all states are respected and where open markets facilitate the free flow of trade and capital. Australia still seeks a balance in the regional order that serves our interests, even in the face of disruption and sharper strategic competition.

The department supported government to deepen Australia’s Indo-Pacific engagement, including in response to COVID-19, in ways that strengthen our network of partnerships. We have further invested in the resilience of our neighbours to external shocks and interference. This contributes to Australia’s own security and influence. We pursued active and determined diplomacy through bilateral channels, small groups and regional institutions. We have worked to reinforce rules that constrain the exercise of coercive power and to deliver agreements that expand access and opportunity for Australian business. The department supported the government in navigating a more complex relationship with China. We continued to invest in the long-term stability, resilience and development of our Pacific family by coordinating whole-of-government activities under the Pacific Step-up.

How the Indo-Pacific responds to and recovers from COVID-19 will have a strong bearing on Australia’s future security and prosperity, including our own economic recovery. Australia will continue to protect our national interests and will support our neighbours to chart a course for the region and out of the crisis.

We helped our neighbours prepare for and respond to the pandemic and started to build a regional pathway to sustainable economic recovery under our Partnerships for Recovery strategy. Through cooperation with others, we amplified our impact and reinforced our key relationships.

Advancing Australia’s interests in the Indo-Pacific

Performance measure How we rate our performance*

Our diplomatic efforts in the Indo-Pacific advance Australia’s interests. On track

Australia’s Step-up in Pacific and Timor-Leste engagement supports stronger and more resilient economies, development outcomes and regional security.

Partially on track, because of the impact of COVID-19

Source: Corporate Plan 2019-20 p. 11, PBS 2019-20 program 1.1 p. 28 | Funding: PBS 2019-20 programs 1.1, 1.2, 1.3, 1.4 and 1.6 *Our assessments are informed by economic and trade data, tracking our implementation of government decisions, agreements with foreign governments, outcomes from dialogues with foreign governments, and development results from the department’s Aid Program Performance Reports

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Our performance In 2019-20 the department supported engagement and outcomes that advanced the long-term regional objectives outlined in the 2017 Foreign Policy White Paper. Highlights from the first nine months of the year included supporting the Prime Minister’s visits to the United States and Vietnam, the launch of the Australian Infrastructure Financing Facility for the Pacific, the Fiji-Australia Vuvale Partnership, the Plan of Action for the Indonesia-Australia Comprehensive Strategic Partnership, concluding a new digital economy agreement with Singapore, elevating quadrilateral consultations with the United States, Japan and India to ministerial level, and establishing two new diplomatic missions in Palau and the Cook Islands.

In the wake of the pandemic, the department reoriented a wide range of its capabilities to support Australians in the region, the resilience of our neighbours, and economic and security interests. Despite travel restrictions, ministers and senior officials continued to invest in our Indo-Pacific relationships, through virtual means. For example, we supported the elevation of ties with India to a Comprehensive Strategic Partnership at a Leaders’ Virtual Summit in June, and our relationship with ASEAN countries at a Special ASEAN-Australia Foreign Ministers’ Meeting on COVID-19.

At the same time, the unprecedented disruption caused by COVID-19 had a significant impact on our operating environment. The day-to-day business of regional diplomacy and delivering projects was constrained by travel restrictions and border closures, and competing demands on some partners. While all posts in our overseas network remained open, there was a temporary reduction of staff at many. The majority of our Indo-Pacific initiatives remain on track, but we have needed to pause others. On balance, we rate our performance under this measure as ‘on track’.

Engaging the United States The United States plays a central role in Australia’s prosperity and security and makes a vital contribution to our Indo-Pacific interests. Our relationship is underpinned by leader-level engagement, which was advanced by the Prime Minister’s state visit to Washington in September, supported by the department. The strength of the leaders’ relationship was made clear when the President hosted a State Dinner for the Prime Minister during the visit—the second only of the Trump Administration. Leaders agreed to expand bilateral cooperation in areas including science, space and critical minerals.

The United States and Australia are working together—and with like-minded partners—to shape a region that is open, inclusive, prosperous and rules-based. In August we organised the Australia-United States Ministerial Consultations (AUSMIN) hosted by Foreign Minister Payne with Defence Minister Reynolds in Sydney. This affirmed and shaped the Alliance’s regional focus, including to further assist countries in Southeast Asia and the Pacific to advance their economic and security priorities through initiatives such as high-quality infrastructure financing and a commitment to support all countries’ national resilience and sovereignty in the face of emerging threats.

In 2020 we marked the 15th anniversary of the signing of the Australia-United States Free Trade Agreement. Over this time, goods and services trade between our countries has almost doubled. The department continued comprehensive advocacy to maintain our market access, including in the context of US tariffs on steel and aluminum, and the challenging economic conditions created by COVID-19.

The department drove work with the United States to tackle the twin health and economic challenges posed by the pandemic. Our diplomatic collaboration helped ensure availability of medical supplies for our two countries, facilitated the return of Australian citizens from overseas and advocated for minimal disruption to international trade. Our cooperation to address the pandemic followed the invaluable assistance provided during the Australian summer by US firefighters, three of who lost their lives fighting bushfires in the Snowy Mountains.

PROMOTE A STABLE AND PROSPEROUS INDO-PACIFIC

China Our relationship with China has never been more complex and China-related issues never more consequential to our national interests. The department has played a critical role at the centre of government in responding to this challenge.

Both countries have benefited from our Comprehensive Strategic Partnership, natural economic complementarities and extensive people-to-people links. Australia is important to China as a reliable supplier of safe, quality foods (meat, grains, horticulture, dairy) as well as minerals and resources (iron ore, LNG, coal)—the building blocks of China’s economy. China is our number one export market and a source of foreign direct investment. Australia’s trade with China grew by 17 per cent in 2019, having grown on average by 12 per cent annually over the past five years.

Australia and China also have differences: we are an open democracy and China is a one-party state. At times we have needed to stand firm on areas of difference. It is important for Australia’s national resilience and prosperity that we advance the full range of Australia’s national interests, across security and economic and trade interests. The department supported the government in navigating this complex relationship, working across government to progress policies that uphold our security and values while maintaining scope for cooperation.

Throughout 2019 and 2020 the department advocated for the interests of Australian exporters, for example the barley industry in response to China’s imposition of anti-dumping and countervailing duties and beef producers facing noncompliance issues.

We consistently expressed our concerns about human rights, including in the Xinjiang Uyghur Autonomous Region, and led the government’s response to the situation in Hong Kong.

Hong Kong

Australia has a strong interest in ground, and to ensure policy-makers Hong Kong’s success—it is home to one in Canberra were making decisions of our largest expatriate communities based on the latest and most accurate and our largest commercial presence in information. Asia. We have extensive and enduring

With the devastating effects of COVID-19

interests in Hong Kong, built on strong and impacts on international travel, the

trade and investment connections and Australian Consulate-General in

close people-to-people links.

Hong Kong provided timely advice to

The department led the government’s the 100,000 Australians based there, and response to protests in Hong Kong in helped travellers transiting en route to 2019-20, ensuring up-to-date travel Australia from across the region. advice and the delivery of consular

The Australian Government expressed

services to Australian travellers. Between deep concern—including through

August and February, we deployed statements issued jointly with other

15 crisis response team personnel to countries—at China’s imposition of a

Hong Kong. We supported ministers national security law on Hong Kong on

to promote and advocate Australian 30 June. The law undermines the ‘One

interests, including through a number Country Two Systems’ framework and

of high-level statements issued with the city’s high degree of autonomy

international partners. The Australian guaranteed in the legally binding Sino-

Consulate-General in Hong Kong worked British Joint Declaration and Hong Kong’s

closely with Australian business and Basic Law.

community members to keep abreast of the rapidly evolving situation on the

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At the same time, the department organised and supported high-level engagements with China— including between leaders at the East Asia Summit in November—to progress our economic and strategic interests. The Trade, Tourism and Investment Minister led Australia’s delegation to the China International Import Expo.

We worked to facilitate the departure from Wuhan of Australian citizens after the outbreak of COVID-19 and continued to provide consular advice and assistance to others. We facilitated delivery to Wuhan of much-needed personal protective equipment, helped resolve issues relating to trade in medical products and supported implementation of the international freight mechanism.

Australia supports practical cooperation and engagement with China, for the benefit of both countries. The announcement of the National Foundation for Australia-China Relations supports this commitment. The Foundation has been operational ahead of its formal launch, building on existing and developing new cooperation and community links. As part of its operations, the Foundation supported the Australia-China High Level Dialogue in January 2020. It also provided an ad hoc grant to the Doherty Institute to collaborate on COVID-19 research with Hong Kong and Chinese universities on immune responses and vaccine efficacy.

Australian and Chinese representatives at the 6th Australia-China High Level Dialogue in Sydney. Left to right: former Prime Minister the Hon John Howard OM AC, Secretary Frances Adamson, Honorary President of the Chinese People’s Institute of Foreign Affairs Li Zhaoxing and Australia’s Ambassador to China Graham Fletcher [Peter Morris]

Working with Indo-Pacific partners The value of our Special Strategic Partnership with Japan continues to grow, as we work closely together towards an open, prosperous and inclusive Indo-Pacific region. The department supported frequent, high-level engagement with Japan, including between our prime ministers, foreign and trade ministers. This helped to further expand our cooperation in priority areas such as maritime security and infrastructure development.

We have worked with Japan in times of need. We facilitated Japan’s generous support to Australia’s bushfire response, including protective masks, two Hercules transport aircraft, and over $5 million in cash donations. During COVID-19, we worked with Japan to repatriate both countries’ citizens, including the return of 170 Australians aboard the Diamond Princess cruise ship. We also cooperated in mitigating the health and economic impacts of the pandemic in the Pacific.

PROMOTE A STABLE AND PROSPEROUS INDO-PACIFIC

Our economic partnership continues to grow and evolve, focusing on new opportunities in hydrogen, critical minerals and rare earths, and critical technology, including 5G. At the second Ministerial Economic Dialogue in January, Australia and Japan signed the Joint Statement on Cooperation on Hydrogen and Fuel Cells. We marked the fifth anniversary of the Japan-Australia Economic Partnership Agreement, under which two-way trade has increased 31 per cent since 2015.

Minister for Foreign Affairs Senator Marise Payne with then Japanese Foreign Minister (later Defense Minister) Kono Taro and United States Secretary of State Michael Pompeo at the Trilateral Strategic Dialogue Ministerial Meeting held in Bangkok on 1 August [DFAT/Korakosh Phanpruksa]

We worked closely together to counter terrorism and support arms control. Japan supported the Statement on Preventing Exploitation of the Internet for Terrorism and Violent Extremism Conducive to Terrorism proposed by Australia and adopted by the G20. We jointly convened a ministerial meeting of the Nuclear Non-Proliferation and Disarmament Initiative in November.

The Australia-Japan Foundation continued to promote people-to-people links and supported science and technology, sport, arts and education programs.

Australia’s ties with Indonesia are of first order importance for Australia. The department supported President Joko Widodo’s state visit in February, which included an address to a joint session of Parliament and signing the Plan of Action for the Indonesia-Australia Comprehensive Strategic Partnership. The President’s visit also foreshadowed closer bilateral and regional engagement in response to COVID-19. The Plan of Action (2020-2024) reinforces existing joint priorities, including managing common defence and security challenges, and promoting democracy in the Indo-Pacific through the Bali Democracy Forum. In December we supported the Foreign Minister’s attendance at the Bali Democracy Forum and the 2+2 Foreign and Defence Ministers’ Meeting in Bali.

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............................................................................................................................

Another pillar of the Plan of Action involves forging a stronger economic partnership. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will be the centrepiece of our economic relationship and a focal point for developing new trade and investment opportunities as we emerge from COVID-19. We have also worked closely with Indonesia and regional partners to share best practice for coral reef management, including through our role as co-hosts of the Secretariat for the International Coral Reef Initiative.

Our relationship with India is grounded in shared heritage of democracy and the rule of law, converging strategic and economic interests, and strong people-to-people links. To pursue our aligned goals for the region, we elevated our relationship to a Comprehensive Strategic Partnership (CSP) at a Virtual Prime Ministerial Summit in June. The Prime Ministerial Summit delivered eight agreements to drive cooperation with India covering defence, maritime safety and security, the marine environment, cyber security, critical minerals, water resources, skills and governance.

We continued to build on our economic relationship with India, guided by an independent report to government—An India Economic Strategy to 2035. We supported a visit by the Minister for Trade, Tourism and Investment in February, leading a delegation of more than 120 business people to build stronger links with Indian industry. As part of the CSP, India and Australia decided to re-engage on the proposed Comprehensive Economic Cooperation Agreement, which has the potential to generate new export opportunities for Australian businesses.

Our relationship with the Republic of Korea—Australia’s fourth largest trading partner—continues to deepen. There were five ministerial visits to Seoul, including an August visit by the Minister for Trade, Tourism and Investment which strengthened our engagement in hydrogen issues, and a visit by the Foreign Minister in November to reinforce support for peace on the Korean Peninsula and cooperation on gender equality.

In December we hosted the fourth Australia-Republic of Korea Foreign and Defence Ministers’ 2+2 Meeting. Ministers committed to closer engagement to support and shape an open, inclusive and transparent Indo-Pacific, signed an updated Memorandum of Understanding on Development Cooperation and agreed to resume annual Joint Economic Committee meetings.

Our relationship with New Zealand is our closest and most comprehensive. We continued to work closely to promote the global rule of law and an open and liberalised trading system in an increasingly challenging global context. Our partnership has deepened during COVID-19 as we worked together to plan a future trans-Tasman Safe Travel Zone, when conditions allow. We also worked with New Zealand to support Pacific partners under Australia’s Step-up and New Zealand’s Pacific Reset policies, and coordinated COVID-19 health and economic assistance to our neighbours in the Pacific.

The enduring strength of the trans-Tasman relationship was demonstrated by the efforts of New Zealand firefighters during Australia’s 2019-20 bushfire emergency and in the cooperation of emergency responders and medical personnel in response to the tragic Whakaari/White Island volcanic eruption on 9 December.

Stepping up in the Pacific and Timor-Leste Australia’s relationships with our neighbours in the Pacific region are underscored by our common interests and values, shared history, decades of sustained engagement, and our collective interests in a stable and prosperous Pacific. In partnership over many years with countries of our region, we have worked to help grow economies, build resilience and enhance regional stability through our development programs, our defence, policing and border security cooperation, and our humanitarian and disaster responses in times of need.

PROMOTE A STABLE AND PROSPEROUS INDO-PACIFIC

Through the Pacific Step-up we have lifted the ambition and scope of our engagement, elevating the Pacific to one of our highest foreign policy priorities and making it a central part of our long-term objective of an open, inclusive and prosperous region. The Office of the Pacific led delivery of the government’s ambitious whole-of-government policy agenda, including Australia’s largest ever development assistance contribution of $1.4 billion in 2019-20. This positioned us well to respond quickly to support Pacific countries prepare for and respond to COVID-19. Most Step-up initiatives remain on track, while a number have been paused due to travel restrictions and border closures. We are adapting our major initiatives, like the Pacific labour mobility scheme and the Australian Infrastructure Financing Facility for the Pacific (AIFFP), to respond to new circumstances. We have assessed our overall performance on our Step-up objectives as ‘partially on track’. Between July and March, we supported 33 Australian ministerial-level visits to the Pacific and two visits to Australia by Pacific island Prime Ministers. This high level of engagement enabled discussions with Pacific counterparts to continue virtually as COVID-19 unfolded.

In May we facilitated the Pacific Women Leaders’ virtual meeting co-chaired by Foreign Minister and Minister for Women Marise Payne and Samoan Deputy Prime Minister Fiame Naomi Mata’afa. This focused on the impact of COVID-19 on women’s health, economic security and personal safety in the Pacific.

Australia’s diplomatic network—already the largest across the region—expanded in late 2019 with the establishment of our embassy in Koror, Palau, and our high commission in Rarotonga, the Cook Islands.

The Fiji-Australia Vuvale Partnership

Prime Minister Morrison and Fijian hearts of the local communities they Prime Minister Bainimarama signed helped. Australia has since reciprocated. the Vuvale Partnership in Canberra in When COVID-19 and Tropical Cyclone September. In Fijian, vuvale means family. Harold struck in March and April, Australia The Vuvale Partnership is a platform for responded quickly by delivering health strengthening the enduring Australia-Fiji and humanitarian supplies. Australia relationship, based on family principles: also redirected development assistance trust, respect and mutual support. to provide direct budget support to the

Government of Fiji, demonstrating a fast,

Already, both countries have shown their effective way of meeting the country’s

commitment to the Vuvale Partnership. needs, a sign of our vuvale spirit.

In January, Fiji deployed troops to assist with bushfire recovery in Victoria. The ’Bula Force’ cleared roads and won the

We continued to advance our bilateral partnerships and Pacific regionalism by supporting our membership of the Pacific Islands Forum. The Foreign Minister joined the Special Forum Foreign Ministers Meeting virtually in April and the Pacific Humanitarian Pathway’s Ministerial Action Group in June to lock in best-practice protocols to reduce the spread of COVID-19 and enable the movement of essential personnel and supplies around our region. In June Australia provided $5.5 million to the World Food Programme to support our regional COVID-19 response, including $4 million for air transport and logistics services for the Pathway and assessments of the impact of COVID-19 on food security in the Pacific.

Australia provided a USD300 million loan to help Papua New Guinea (PNG) align its budget on a more sustainable trajectory, fund delivery of core government services, and support longer-term economic reforms. The loan injected much-needed foreign currency into the market, stimulating private sector activities and benefiting trade and investment in PNG.

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The department led a significant intensification in our engagement with Timor-Leste . This included supporting the Prime Minister and Foreign Minister to visit Dili in August to mark the 20th anniversary of the Popular Consultation that led to Timor-Leste’s independence. The first visit by an Australian prime minister in over a decade, it heralded a new chapter in our bilateral relationship. The Prime Minister exchanged notes with his Timorese counterpart, bringing into force our new Maritime Boundary Treaty. This reflects our full commitment to the independence, sovereignty and economic sustainability of Timor-Leste. The Prime Minister announced Australia’s support for the design of a new undersea fibre-optic cable connecting Australia and Timor-Leste.

In December the department hosted officials from Timor-Leste and Indonesia in Darwin to discuss strengthening trade and investment links with each other and Northern Australia. In January a meeting of Australian and Timorese senior officials agreed to strengthen cooperation in maritime security, and support Timor-Leste’s ability to monitor and protect its interests in the Timor Sea.

Australia’s labour mobility initiatives make a valuable contribution to our economy—including in the agriculture sector—and support Pacific and Timor-Leste communities through remittances. Before COVID-19, demand had been growing for both the Seasonal Worker Programme and the Pacific Labour Scheme. Since the pandemic was declared, we have been supporting workers in Australia who were unable to return home. New visa measures, announced on 4 April, enabled around 11,000 Pacific and Timorese workers to remain in Australia and continue working for an additional 12 months. We provided workers and their employers with the latest health advice and other support, including pastoral care and information in their languages.

African Swine Fever - Papua New Guinea and Timor-Leste

Australia supported PNG and Timor-Leste to diagnose and manage their first ever outbreak of African Swine Fever. This livestock disease causes significant mortality in pigs—animals that play an important economic and cultural role for our near neighbours.

The first cases of African Swine Fever were publicly confirmed in PNG in March. The department provided funding to provide technical on-the-ground support for PNG, including mapping and epidemiology advice, laboratory support, training and laboratory supplies, a nation-wide risk awareness campaign, logistics and containment support and training for farmers to strengthen animal health. Our support has helped PNG implement a rapid response effort which has significantly raised awareness of the disease and helped limit the spread.

In Dili, the first cases were diagnosed in September after local samples were sent to the Australian Centre for Disease Preparedness. Australia deployed veterinarians, laboratory technicians and testing equipment to support Timor-Leste to manage the disease. The Australian team helped train local experts to use laboratory equipment, and to survey the extent of the outbreak. This helped farmers to manage the disease and establish disease-free quarantine zones. With the onset of COVID-19, Australian experts, through a partnership with the Victorian Department of Agriculture, continued to support Timor-Leste remotely with technical advice and essential laboratory supplies.

We progressed the Pacific Agreement on Closer Economic Relations (PACER) Plus to support stronger regional economic integration and trade relations. It has been ratified by seven countries (Australia, New Zealand, Samoa, Kiribati, Tonga, Niue and Solomon Islands) with eight required for it to enter into force. We will continue to work with New Zealand and our Pacific partners to secure the agreement’s entry into force and ensure the benefits are realised.

PROMOTE A STABLE AND PROSPEROUS INDO-PACIFIC

Since January, the department has worked with Pacific island countries and Timor-Leste to prepare for and respond to COVID-19. We swiftly reorientated our Step-up initiatives to respond to their acute needs. While this challenge was unprecedented, we have drawn on our well-established relationships with the region to chart a path to economic recovery and build resilience to future pandemics.

We established an essential services and humanitarian corridor to help move essential supplies and personnel into the region. We reprioritised development assistance to meet urgent health, economic, social and humanitarian needs in the Pacific and Timor-Leste and to ensure critical government services could be delivered. We also supported community responses and investments focused on the impact of COVID-19 on women and girls.

As the pandemic unfolded and global partners withdrew international staff, we moved quickly to put special measures in place to retain 71 per cent of our critical development personnel in the Pacific and Southeast Asia, and ensure additional deployments where possible. We continued delivering development assistance with support from partner country nationals, and ensured international staff who were unable to remain in country could provide services remotely.

We continued to build people-to-people links with the Pacific. The Office of the Pacific’s PacificAus Sports delivered 27 high-profile sports activities in Australia and the Pacific, involving more than 130 individual Pacific and Australian athletes—61 per cent of all funded activities targeted women and girls. COVID-19 delayed the planned first intake of students in the Secondary Schools Scholarships Program.

We delivered phase one of the Pacific Church Partnership Program with Pacific church leaders, hosted by Prime Minister Morrison at Parliament House in December. In April, the program pivoted to help church partners in Solomon Islands and Vanuatu respond to Tropical Cyclone Harold and to implement hygiene activities focusing on COVID-19 awareness.

Working with Southeast Asia COVID-19 has underscored the value of our close and longstanding partnerships in Southeast Asia with our posts able to quickly pivot and support countries to respond. The department’s work across the year demonstrated the region’s critical importance to Australia’s efforts to promote a stable and prosperous Indo-Pacific.

The ambition of Australia’s Strategic Partnership with Vietnam drove regular and deep engagement on a wide range of bilateral, regional and strategic issues. We supported the visit to Vietnam by the Prime Minister in August, during which an Australia-Vietnam Enhanced Economic Engagement Strategy was announced. We hosted the inaugural Vietnam-Australia Economic Ministers’ Meeting in Adelaide in November, which agreed to terms of reference for the strategy. The strategy aims to make Australia and Vietnam top 10 trading partners, double two-way investment and support economic recovery of both countries following COVID-19.

Australia’s deep ties with Singapore continued to strengthen. In March the department supported the annual Australia-Singapore leaders’ meeting, convened for the first time via video conference. Leaders concluded a treaty on military training and a digital economy agreement. The treaty will lead to the development and upgrading of military training facilities in Australia for the use of Australian and Singaporean forces. The digital economy agreement will lower costs and increase opportunities for Australian businesses.

We deepened engagement with Malaysia under our Strategic Partnership. This included supporting the Minister for Trade, Tourism and Investment to co-chair the 18th Joint Trade Committee Meeting in August, advancing bilateral trade and investment interests. We also supported the second annual Foreign Ministers’ Meeting in Sydney in November, furthering cooperation in defence and security, trade and investment, and education. These meetings underscored the enduring strength of the Australia-Malaysia partnership and set an ambitious agenda for further cooperation into 2020.

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In the lead-up to Brunei’s chairing of ASEAN in 2021, Australia and Brunei are working together to promote economic integration and prosperity in the region. The Foreign Minister’s successful visit to Brunei in February, supported by the department, will help drive that effort.

In the Philippines we continued Australia’s long-standing support for peace-building in Muslim Mindanao and for maritime security. We also worked with government and civil society partners to improve judicial responses to terrorism through our development partnership. Due to COVID-19, a virtual meeting replaced a scheduled visit to Australia by Philippine Foreign Secretary Teodoro Locsin Jr. in April.

The department led an increase in Australia’s work across the Mekong subregion. We supported closer engagement with Thailand following its elections in 2019, leading to Prime Ministers Morrison and Prayut agreeing to work towards an Australia-Thailand Strategic Partnership. The department also hosted inaugural senior officials’ talks with Cambodia, which included broad-ranging discussions on strategic, political, governance and development assistance issues.

We hosted constructive Human Rights Dialogues with Laos and Vietnam in August, and raised individual cases and key thematic issues. We continued to engage with senior members of the Myanmar government to advocate for improved human rights for minority groups, including the Rohingya, humanitarian access to conflict-affected areas and adherence to international humanitarian law. We expressed concern at the escalation of violence in 2020 in Rakhine and southern Chin states, which undermined work towards a durable solution to the Rohingya crisis. We continued to encourage Myanmar to engage constructively with international accountability mechanisms.

Working with South Asia The department led the Australian delegation to the inaugural Strategic Maritime Dialogue with Sri Lanka to advance shared interests in the Indian Ocean. Held in September alongside senior officials’ and trade and investment talks, it has further strengthened our relationship and our close cooperation to counter people smuggling and other transnational crime.

Our aid contribution to Afghanistan—Australia’s fourth largest bilateral development program— included assistance for the presidential elections, finalised in February. Australia also marked the 50th anniversary of its diplomatic relationship with Afghanistan. The department provided funding and assistance for a visit and performance at the Sydney Opera House by Afghanistan’s first female orchestra.

We supported the Foreign Minister’s visit to Bangladesh in September, the first Australian foreign minister to visit in more than 20 years. The Minister visited the Rohingya refugee camp to highlight Australia’s humanitarian assistance—notably food, education and protection support for women and girls—and met with the host community in Cox’s Bazar District to hear views on the impact of the crisis. The Foreign Minister attended the Third Indian Ocean Rim Association (IORA) Ministerial Blue Economy Conference in Dhaka, announcing the establishment of the CSIRO-IORA Blue Carbon Hub.

Australia and Nepal celebrated 60 years of diplomatic relations in 2020. The department facilitated a visit to Australia from Nepal’s Minister for Tourism Yogesh Kumar Bhattarai in January.

We expanded our engagement with Maldives by supporting the Maldivian Defence Minister’s visit to Australia in November, which generated a number of whole-of-government security-related initiatives.

Australia managed a complex period in our relationship with Pakistan, as we phased out our bilateral aid program and transitioned to regional and global development programs. We supported Pakistan’s progress in combating terrorism by completing critical items required by the Financial Action Task Force. We also held the first senior officials’ talks in four years in Islamabad. We responded to sudden-onset humanitarian challenges in Balochistan and Azad Kashmir, providing food assistance, shelter and safe spaces for women.

PROMOTE A STABLE AND PROSPEROUS INDO-PACIFIC

Building regional collaboration The Association of Southeast Asian Nations (ASEAN) is central to Australia’s Indo-Pacific agenda and during the year played an important role in promoting regional responses to COVID-19. The department led negotiations on the ambitious ASEAN-Australia Plan of Action to expand regional cooperation, which was adopted by the Foreign Minister and her ASEAN counterparts in August. We engaged ASEAN closely on COVID-19, including by convening the senior officials level ASEAN-Australia Forum in May, and a Special ASEAN-Australia Foreign Ministers’ Meeting in June, where the Foreign Minister announced $23 million in new initiatives with ASEAN to promote health security and economic recovery.

We helped strengthen the East Asia Summit (EAS) as the premier forum for leader-led discussion on strategic issues facing our region. We initiated a statement on cooperation to combat transnational crime, which was adopted by leaders at the Summit in Bangkok in November. This recognised the importance of countering terrorists’ use of the internet. Our plans to co-host an EAS cyber workshop with Singapore in early 2020 were disrupted by COVID-19, and we began work to reschedule the initiative.

Our support for the inaugural Australia-India-Japan-United States Quadrilateral (Quad) Foreign Ministers’ Meeting in September helped advance cooperation on our complementary visions for the Indo-Pacific. We also participated in regular Quad senior officials’ consultations and activities. Through the Trilateral Strategic Dialogue with Japan and the United States, we coordinated engagement on maritime security and infrastructure.

To help galvanise responses to COVID-19, we engaged partners in new and existing groups. The Five Eyes group was a key forum for discussing the implications of the crisis, and meetings were arranged at ministerial and senior officials’ levels. The Secretary joined counterparts from India, Indonesia, Japan, New Zealand, the Republic of Korea, the United States and Vietnam for regular Indo-Pacific coordination calls. The department supported an unprecedented level of virtual diplomacy between portfolio ministers and their regional counterparts, enabling progress on shared priorities despite COVID-19 travel restrictions.

Promoting women’s role in peace-building in our region

We are strengthening women’s roles in officers to ensure messaging reached peacebuilding and peacekeeping across a broader audience. On polling our region. day, around 49 per cent of voters

were women, and women’s groups

In November and December, Australia participated as polling station officials

supported the UN Development and observers.

Programme’s Bougainville Referendum Support Project—a multi-donor fund Through Pacific Women, Australia is that contributed significantly to Women, partnering with the International Women’s Peace and Security efforts at this crucial Development Agency and the Nazareth juncture in the Autonomous Region of Centre for Rehabilitation in Bougainville, Bougainville’s history. to address family and sexual violence by

promoting shared power and decision-

With the project’s support, women’s making between women and men. The

groups were active throughout the program has supported 800 community

process, driving community discussions leaders throughout Bougainville to apply

and action on safety and security, and new knowledge and analytical skills to

developing polling day processes to manage and implement community

allow women to vote freely. The project peacebuilding activities.

helped recruit women as awareness

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COR L

...........................................................................................................................

The Pacific Islands Forum , through its unique convening power and ability to mobilise coordinated regional responses, remains a central part of Australia’s Pacific engagement—including in response to the COVID-19 pandemic. Prime Minister Morrison joined other Forum leaders at the August meeting in Tuvalu in endorsing the Kainaki II Declaration, which called on all countries to take action to address the challenges of climate change.

Under the Canberra Fellowships Program, the department designed and delivered six visit programs involving 40 current and emerging leaders from 15 Indo-Pacific countries. These visits covered Pacific island education policy, defence and security cooperation, digital connectivity, and infrastructure.

In 2019-20 the department’s Australian Water Partnership program supported 12 Indo-Pacific countries through 56 projects and activities. This included developing a river basin management plan for the Ayerwaddy River in Myanmar—home to 37.7 million people—and striving for gender inclusion outcomes in Vietnam’s water utility twinning program.

Maritime security As a major trading nation with a vast maritime jurisdiction, Australia has a vital interest in an open, stable and rules-based maritime domain throughout the Indo-Pacific.

Australia has a substantial interest in the stability of the South China Sea—a crucial international waterway—and the rules and norms that govern it. Our diplomatic engagement this year continued to promote adherence to international law, particularly the United Nations Convention on the Law of the Sea. In the context of COVID-19, we emphasised the importance of all parties refraining from destabilising activities so countries could devote full attention to addressing the pandemic.

In Southeast Asia, we worked to enhance resilience to maritime security threats that can undermine sovereignty and the capacity of countries to realise the economic potential of their maritime domains. We continued to facilitate practical maritime cooperation through regional bodies, including as the co-leads (with Vietnam and the EU) of the ASEAN Regional Forum (ARF) maritime security work-stream. In February we co-chaired with Timor-Leste and Malaysia an ARF workshop on dispute resolution and the law of the sea in Dili, Timor-Leste. That same month, we co-led with India and Indonesia an East Asia Summit conference on maritime security in Chennai, India.

Contributing to regional and maritime security

The Office of the Pacific launched the border closures and disseminated a series Australia Pacific Security College in of COVID-19-related analytical reports. November as a critical part of the Step- Its website traffic increased 40 per cent up. The college focused on training between April and June. We supported Pacific officials in line with the 2018 Boe maritime security in the Pacific by: Declaration on Regional Security. With

• providing a maritime domain

the emergence of COVID-19, the college awareness tool and publishing

moved its scheduled course offerings, analytical products on the Pacific

stakeholder outreach and advisory board Fusion Centre website

meetings online. The Office of the Pacific established the interim Pacific Fusion • supporting Pacific island countries to Centre in August, which has been staffed define their maritime boundaries by Australians and 20 secondees from 13

• working with countries and partners

Pacific island countries so far. The centre in the region to enforce maritime

published daily COVID-19 awareness rights, including fisheries.

videos, developed a map of regional

PROMOTE A STABLE AND PROSPEROUS INDO-PACIFIC

The Indian Ocean region was another focus of our work. The department led negotiations on the Joint Maritime Declaration adopted by leaders at the Australia-India virtual summit in June. This commits our nations to support the rules-based maritime order in the region; work together to strengthen maritime domain awareness throughout the Indo-Pacific; and combat transnational challenges, such as people smuggling, arms and narcotics trafficking, climate change, terrorism, and illegal, unregulated and unreported fishing.

Infrastructure investment The Australian Infrastructure Financing Facility for the Pacific (AIFFP) became operational on 1 July. As we respond to the challenges of the pandemic, AIFFP will continue to focus on high-quality, climate-resilient infrastructure that maximises local engagement, including local employment and business opportunities. AIFFP has a dedicated climate infrastructure window to advance the region’s energy transition and climate ambitions. The facility’s priorities are in energy, water, telecommunications and transport sectors, which are key areas in meeting the challenges of climate change.

The 5,500km Coral Sea Cable System (CS2) and Solomon Islands Domestic Network are examples of Australia stepping up in the Pacific, providing high-quality, secure infrastructure without leading to a heavy debt burden on Pacific island countries. With construction and installation now complete, both systems have been available for customers in PNG and Solomon Islands since early February.

Building on the Coral Sea cable experience, the Office of the Pacific—including through the AIFFP—is working with Papua New Guinea, the United States, Japan and New Zealand to deliver greater access to electricity for PNG businesses and households under the PNG Electrification P artnership. This is a key economic priority for Papua New Guinea and a number of AIFFP investments will support it.

Australia’s High Commissioner to Papua New Guinea, Jon Philp, joins Prime Minister James Marape and ministers to open the Coral Sea Cable Project. Left to right: Prime Minister Marape, Jon Philp, Minister for State Enterprises, Sasindran Muthuvel, and Minister for Information and Communications Technology, Timothy Masiu [DFAT]

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To advance the Trilateral Infrastructure Partnership (TIP), which supports high-quality infrastructure investment in the Indo-Pacific, the department worked with Export Finance Australia and counterparts in Japan and the United States to share information about project pipelines and identify opportunities for trilateral cooperation.

In November the Minister for Trade, Tourism and Investment joined ASEAN counterparts to launch the Rolling Pipeline of Potential ASEAN Infrastructure Projects. The pipeline will help ASEAN member states select infrastructure projects in strategic sectors such as energy, transportation, and information and communications technology. Our work on the pipeline will be complemented by other Australian-funded infrastructure initiatives such as the Southeast Asia Economic Governance and Infrastructure Facility that will provide technical assistance on infrastructure decision-making to support economic growth.

Responding to the threat posed by North Korea The department supported the Foreign Minister to issue statements on 24 August and 1 November condemning North Korea’s repeated shorter-range ballistic missile launches since May, and calling on North Korea to cease provocations that risk instability on the Korean Peninsula.

Australia remained committed to implementing UN Security Council and Australian autonomous sanctions against North Korea until it takes clear steps towards complete, verifiable and irreversible denuclearisation.

We conducted regular advocacy to other states, particularly in the Indo-Pacific, calling on them to fully implement UN Security Council sanctions.

We supported the Department of Defence’s deployment of maritime patrol aircraft to Japan and a naval vessel to the region to monitor ships evading UN Security Council sanctions against North Korea. We followed up with the states where vessels of concern were registered, and shared information with the United Nations for further investigation.

Building relationships through the New Colombo Plan The New Colombo Plan (NCP) supports thousands of young Australians to study and undertake internships in the Indo-Pacific. It helps expand institutional links and develop connections for a new generation of leaders. It is also growing cultural understanding and contributing to stability and prosperity in the Indo-Pacific.

Performance measure How we rate our performance*

The New Colombo Plan delivers improved people-to- people, institutional and business links:

• at least 10,000 Australian under

graduates supported to

study in the Indo-Pacific each year, and

• more high quality engagement with Australian univer

sities, businesses, alumni and other stakeholders in the New Colombo Plan.

Partially on track

Source: Corporate Plan 2019-20 p. 12, PBS 2019-20 program 1.5 p. 33 | Funding: PBS 2019-20 programs 1.1 and 1.5 *Our assessments are informed by feedback from students, universities, the private sector and partner governments; analysis of our NCP and alumni databases; and surveys of participants

Our performance In 2019-20 the department awarded 11,321 NCP scholarships and short-term grants for Australian undergraduates to study and have work-based experiences in 37 Indo-Pacific locations. This brings the total awards since 2014 to approximately 60,000. While we have achieved this measure in terms of awards announced, we rate our performance as ‘partially on track’ to reflect delays in student mobilisation due to COVID-19.

Returned student surveys reported that 99 per cent of NCP scholars and 94 per cent of short-term grant recipients believed they were better prepared to engage with the Indo-Pacific after their NCP experiences. Private sector partners confirmed the value of the program in delivering an Indo-Pacific literate and connected workforce by sponsoring 18 NCP scholarships in 2020 (up from eight in 2019), and streamlining graduate recruitment for NCP alumni. More than 320 Australian and regional private sector organisations offered internships to NCP students.

All NCP scholars and most mobility students returned to Australia due to COVID-19. We provided opportunities for them to continue their engagement by delivering a three-month series of weekly webinars which were supported by senior business and academic leaders.

We supported the ongoing connection of NCP alumni with the Indo-Pacific through more than 35 networking and development events—including online webinars—during the COVID-19 period.

We appointed 51 NCP Alumni Ambassadors from all universities and every state and territory— including two NCP Indigenous Ambassadors. They promoted the NCP and the value of engaging with the Indo-Pacific region on their campuses and in communities across Australia.

The NCP alumni LinkedIn group grew to 5,165 members during the year—up from 3,196 the previous year—reflecting a strong and active alumni cohort.

Figure 4 2019-20 NCP Scholars

1.6 %Indigenous

56 %Female

33%Low socio-economic backgrounds

27 %Regional/remote

26 %Spoke a language other than English at home

8%Living with disability

2020 NCP scholars

26 %First in family to attend university 2020 NCP scholars

PROMOTE A STABLE AND PROSPEROUS INDO-PACIFIC

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--~·········. . . . . . . . . . . . . . . •• 0 •• ········

• t

Feedback on the NCP from regional governments, the business sector and universities was positive. We received applications for projects to the value of approximately $97 million (against available funding of $23 million) for the 2021 NCP round which closed on 25 June. We improved program delivery and administration, including by working with the market to establish a strategically integrated delivery model with industry partners.

Advising and supporting our ministers

Performance measure How we rate our performance*

High level of satisfaction of ministers and key stakeholders On track with the quality and timeliness of advice, briefing and support provided by the department. Source: Corporate Plan 2019-20 p. 11 and 13, PBS 2019-20 program 1.1 p. 28 | Funding: PBS 2019-20 program 1.1

* Our assessments are informed by consultation with portfolio ministers’ offices, the department’s internal divisional business reviews and regular feedback from our ministers and stakeholders

We assess our performance against this measure as ‘on track’, based on assessments from our internal reviews and feedback received, including during the pandemic. In response to COVID-19 we developed new and different ways to support ministers’ international engagement, including high-level virtual meetings with bilateral, regional and multilateral partners. This helped ensure Australia’s international objectives were advanced during the pandemic. We streamlined how we worked with ministers and their offices to provide timely and high-quality information on COVID-19 and its implications for Australian interests. At the peak of the consular response to COVID-19, the department deployed additional staff to the Foreign Minister’s office to help parliamentarians respond to constituents affected by the pandemic.

We supported ministers through a period of unprecedented Cabinet activity. Our overseas network provided comprehensive, accurate analysis and information on global developments on the pandemic, directly contributing to ministers’ engagement in whole-of-government action on Australian responses.

In the first half of the reporting period we supported 35 visits for our five portfolio ministers to 40 countries for a combined duration of 123 days; seven visits by the Prime Minister; and three by the Governor-General. Overall, we supported fewer high-level physical visits as travel was restricted.

Feedback on our performance from ministers’ offices was that the department was responsive and provided high-quality advice including for Cabinet processes. Updates from our Global Watch Office were well regarded, as was reporting from the overseas network. Ministers’ offices strongly agreed that the department provided high-quality support for overseas visits. Feedback on our support for correspondence from the public was less strong and we are continuing to strengthen the quality of our support for ministers in this important area of our work.

As COVID-19 delayed internal business review processes, we did not formally survey external stakeholders in 2019-20, but received positive informal feedback throughout the period, including from business.

PURSUE OUR ECONOMIC, TRADE AND INVESTMENT OPPORTUNITIES Australia’s openness to trade and investment has supported an unprecedented period of economic growth and enviable improvements in living standards. Enhancing opportunities for trade and investment creates jobs and prosperity, with one in five jobs in Australia trade-related.

Figure 5 Australia’s trade and investment

Total level In 2019 of outward Australia’s total investment and services increased by 7.5 per cent to $917.6 billion

trade in goods

from Australia

$3.0

$3.8 trillion Level of foreign investment in Australia 7.8%

trillion

15.9%

COVID-19 driven shocks to demand and supply have had an unprecedented impact on the Australian economy and exacerbated already challenging trade and investment conditions. Yet parts of our economy have demonstrated resilience. For example our export sector has been a source of strength, consistent with our long-running commitment to being an open, trading nation. Despite a worldwide downturn in global trade between February and June, the value of Australia’s goods exports grew by two per cent (seasonally adjusted). This was driven in part by our exports of iron ore and gold, which grew in value over the first six months of 2020 by 13.3 per cent (to $50.9 billion) and 13.8 per cent (to $12 billion) respectively.

Success in these markets was helped by resilient global demand, supply constraints in our key competitors and falls in the value of the US dollar. However, growth in Australia’s goods exports was offset by falls in the value of our services exports. Between February and June, the value of services exports fell by 15.3 per cent (seasonally adjusted) as the pandemic severely disrupted the international tourism and education markets.

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Supporting Australian business and keeping markets open Australia’s prosperity relies significantly on open, transparent and rules-based trade. In 2019-20 we continued to work to support the global rules-based trading system centred on the World Trade Organization (WTO) and to keep markets open and global supply chains functioning. International economic cooperation will be essential to a strong recovery. We worked in the WTO and other forums including the G20 and APEC to maintain support for global trading rules and open markets.

Performance measure How we rate our performance*

Effective support to the global rules-based trading system Partially on track and opening of markets. Source: Corporate Plan 2019-20 p. 13, PBS 2019-20 program 1.1 p. 28 | Funding: PBS 2019-20 programs 1.1 and 1.4 *Our assessments are informed by WTO, APEC, G20 and OECD outcomes, diplomatic reporting on feedback from foreign governments and new trade agreements

Our performance We are ‘partially on track’ against this performance measure. The global trading system is under pressure from rising protectionism, unilateral trade measures and concerns about aspects of the WTO. Face-to-face WTO meetings ceased from March and the 12th WTO Ministerial Conference was postponed due to COVID-19. Despite these challenges, the WTO remains the cornerstone of the rules-based trading system and we worked to shore it up, including the transparency and notification functions given the increase in new COVID-19 related trade measures.

We engaged across government to ensure Australia’s COVID-19 measures supported the government’s response and recovery efforts and were in line with WTO rules.

In the WTO, we made substantial progress on e-commerce negotiations, working to advance the first set of global digital trade rules. Australia helped drive progress in negotiations on reducing fisheries subsidies and on agricultural trade reform by proposing a new Framework for Negotiations on Domestic Support to tackle harmful agricultural subsidy entitlements. We also advanced plurilateral negotiations on services domestic regulation. In June, together with many of our Cairns Group partners, we launched a new WTO COVID-19 initiative to protect global food security through open trade. We also responded to over 500 questions on Australia’s trade and investment-related policies from 31 WTO Members as part of the WTO’s eighth trade policy review of Australia—the first virtual review after COVID-19 shut down WTO meetings.

We successfully led the defence of Australia’s tobacco plain packaging measure in challenges before the WTO Appellate Body. This positive result underscored that genuine health measures and trade rules are mutually supportive. We used our challenge to Canada’s wine measures to gain further opportunities for our wine producers in that market. We led the response to Indonesia’s challenge to Australia’s imposition of anti-dumping measures on A4 copy paper, and progressed Australia’s challenges to Indian sugar subsidies. With WTO Members unable to reach consensus on the appointment of new Appellate Body members, the WTO Appellate Body ceased to have a quorum to hear new appeals from December. In response, Australia helped negotiate a Multi-Party Interim Appeal Arbitration Arrangement (MPIA) to ensure the finalisation of WTO disputes between MPIA participants while the Appellate Body remains unable to function.

In the G20 we worked with 2019 host Japan, and 2020 host Saudi Arabia, as well as with like-minded economies, to support WTO reform. In response to COVID-19 we helped secure agreements on strong commitments by G20 leaders and trade ministers to support an economic recovery, including by keeping global supply chains open and combating protectionism. Tourism plays a significant role in G20 economies and we have worked to support a recovery, including through a commitment to supporting a safe travel environment that helps rebuild consumer confidence in the sector as health conditions allow.

PURSUE OUR ECONOMIC, TRADE AND INVESTMENT OPPORTUNITIES

We supported economic recovery in our region by adapting our APEC capacity building support. We prioritised areas such as supply chain resilience, digital trade and support for groups and sectors disproportionately impacted by COVID-19, such as women and small businesses. While progress in APEC was difficult—in part because of the cancellation of the APEC Leaders’ meetings due to civil unrest in Chile—we negotiated outcomes on sustainable oceans and women’s economic empowerment. We supported Chile to deliver its policy agenda with the secondment of a departmental officer. In February the department brought some 200 senior business representatives to Australia from around the APEC region to engage with ministers, officials and businesses on key economic and trade issues. Malaysia pivoted its 2020 host year to respond to the COVID-19 crisis and economic recovery, while focusing APEC’s post-2020 agenda on support in the region for open markets and the rules-based trading system.

We also adapted our ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) Economic Cooperation Support Program to align with COVID-19 economic recovery efforts. We helped regional consumer protection agencies address anti-competitive behaviour and price gouging during the pandemic. Other activities focused on streamlining trading rules to support resilience in regional supply chains, increasing regional economic integration and connectivity, and further liberalising trade and investment in the region.

We advocated for Australia’s interests in shaping international export credit rules and practices in the Organisation for Economic Co-operation and Development (OECD) and the International Working Group on Export Credits.

Supporting Australian businesses to secure opportunities globally Our ambitious agenda of negotiation, implementation, review and advocacy of free trade agreements is providing Australian businesses with new market opportunities, reducing the cost of doing business overseas and delivering greater choice and more affordable products to Australians. This work is central to Australia’s economic prosperity and recovery.

Minister for Trade, Tourism and Investment, Senator Simon Birmingham, visits Alchemy, a unique Australia-India collaboration microbrewery, in Bengaluru, India. The brewery is a collaboration between the Chancery Pavilion Hotel, run by Australian alumnus Pradeep K Raju, and Melbourne’s Cavalier Brewing. Alchemy’s success shows the potential for ‘Australian-style’ beers, using Australian hops and malt, to thrive in foreign markets [DFAT/ ArtsyLens Photography]

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It is challenging to negotiate, conclude and implement comprehensive trade agreements. Our partners have different political cycles, trade and economic interests, and priorities for economic development. These challenges have been amplified by COVID-19 but we have been able to continue to negotiate virtually.

COVID-19 and resulting widespread border closures significantly impacted global supply chains and consumer confidence, including for key Australian products. The long-term impact of the pandemic on Australia’s export and import markets is not yet clear. We have been engaging intensively with Australian business about the impact of COVID-19 on them. We have provided them with information about developments in a wide range of markets and about ways they may be able to mitigate the impact of disruptions to supply chains. At the same time, we have been working with other governments, bilaterally, in forums such as APEC and in the WTO, to keep markets open and supply chains operating.

On track

Performance measure How we rate our performance*

Increased opportunities for Australian businesses. Source: Corporate Plan 2019-20 p. 13, PBS 2019-20 program 1.1 p. 28 | Funding: PBS 2019-20 program 1.1 *Our assessments are informed by economic data, new market access for Australian firms, and progress in negotiating new FTAs and in reviewing existing FTAs.

Australia’s trade is increasingly covered by concluded free trade agreements, with a target of:

• 80 per cent of trade covered by 2020, and

• 90 per cent of trade covered by 2022.

Partially on track

Source: Corporate Plan 2019-20 p. 13 | Funding: PBS 2019-20 program 1.1 *Our assessments are informed by economic data, market access for Australian firms, and progress in negotiating new FTAs

Our performance We assess that we are ‘on track’ in providing increased opportunities for Australian businesses. Our performance against this measure relies in large part on concluding current FTA negotiations, looking for potential new agreements and upgrading our existing agreements. Based on data from the 2019 calendar year, 70.3 per cent of Australia’s two-way trade is covered by FTAs. This includes the PACER Plus agreement, which Australia has ratified but which has not entered into force. India’s decision late in 2019 not to join the Regional Comprehensive Economic Partnership, compounded by the impact of COVID-19 on trade, has negatively impacted our ability to achieve the goal of 80 per cent coverage of Australia’s trade by FTAs by the end of 2020. However, we are working to meet the government’s goal for FTAs to cover around 90 per cent of Australia’s two-way trade by 2022. A successful conclusion of ongoing FTA negotiations with major trading partners such as the European Union and the United Kingdom would contribute to achieving this goal. We rate our performance against this second measure as ‘partially on track’.

In November leaders from 15 of the 16 Regional Comprehensive Economic Partnership (RCEP) countries (except India) concluded negotiations on all 20 chapters of the RCEP agreement, and essentially on all market access commitments on goods, services and investment. RCEP will be the world’s largest free trade agreement, bringing together nine of Australia’s top 15 trading partners into a single economic framework and will link Australian businesses more closely with the most economically dynamic region of the world. This will increase opportunities for Australian businesses and consumers to benefit from regional value chains. India’s decision not to join RCEP means less regional trade will be covered by this FTA.

Australia ratified the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) in December. Under this agreement more than 99 per cent of Australian goods exports by value will enter Indonesia duty-free or under significantly improved preferential arrangements. This includes key agricultural exports such as live cattle, red meat, feed grains, citrus,

PURSUE OUR ECONOMIC, TRADE AND INVESTMENT OPPORTUNITIES

carrots and potatoes. The services and investment outcomes in IA-CEPA provide greater certainty and access for Australian businesses and service suppliers in the Indonesian market, including guaranteed levels of Australian ownership.

The Australia-Hong Kong Free Trade Agreement (A-HKFTA) entered into force in January. This agreement locks in duty-free access for Australian goods exports to Hong Kong and provides better certainty for Australian investors and service providers, including in the education, financial and professional services sectors.

The Peru-Australia Free Trade Agreement (PAFTA) entered into force in February. PAFTA opens significant diversification opportunities for Australian businesses, delivering duty-free access for wine, sheep meat, most horticulture products, kangaroo meat, wheat, pharmaceuticals, medical devices, and paper and paperboard. Australian producers gained duty-free access (up to certain quotas) for sugar, sorghum, rice and dairy. PAFTA also removed barriers to services trade, providing more transparent and predictable operating conditions in Peru for Australian service suppliers.

In March we concluded negotiations on the Australia-Singapore Digital Economy Agreement, delivering a comprehensive framework of trade rules and bilateral cooperation to help businesses and consumers capitalise on the digital economy. We negotiated cutting-edge new rules and signed memorandums of understanding including on data innovation, artificial intelligence, e-invoicing, e-certification for agricultural exports and imports, trade facilitation, personal data protection and digital identity.

We advanced FTA negotiations with the European Union, including through virtual negotiations. A comprehensive and liberalising FTA will deliver significant economic returns through improved access to the restricted EU agricultural market, and enhanced conditions for investment, services trade and procurement. The FTA will be an important element in our supply chain diversification and resilience, and economic recovery strategies. FTA negotiations with the United Kingdom were launched and a first round of negotiations was held in June. Australia seeks an ambitious and comprehensive FTA with the United Kingdom that drives increased trade in goods and services, two-way investment, economic growth and job creation. An FTA with the United Kingdom will support our economic recovery and signal a shared commitment to open markets and the rules-based global trading system.

FTA discussions with the Pacific Alliance were reinvigorated in the second half of 2019, but momentum was stymied by the pandemic. We will restart work with the Pacific Alliance grouping when it is able to re-engage.

We continued work to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) effectively, including to encourage the remaining four signatories to ratify and to encourage other interested countries to consider joining.

The department also engaged with our ASEAN and New Zealand counterparts on the ongoing implementation of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). This included preparing for the launch of the AANZFTA upgrade negotiations, to ensure the agreement remains contemporary and contributes to COVID-19 regional economic recovery.

We conducted a post-implementation review of the Japan-Australia Economic Partnership Agreement (JAEPA). This found that JAEPA had met its broad objectives of creating opportunities for Australian businesses, and increasing trade and investment flows between Australia and Japan, since its entry into force in January 2015. We are working with Japan on a review of certain market access outcomes under JAEPA, ahead of a general review of the agreement in 2021.

We supported the Minister for Trade, Tourism and Investment to establish a Ministerial Advisory Council on FTA Negotiations (MAC) in June. The Council reflects the government’s commitment to

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enhance the transparency of FTA negotiations. It builds on and complements existing FTA consultative processes, including the important role of the Parliament’s Joint Standing Committee on Treaties. The MAC’s broad membership is drawn from a cross-section of Australian society, including business and community-based organisations.

Sharing our foreign, trade and investment policy expertise and our knowledge of the international environment helps Australian businesses take advantage of international opportunities and is an important component of our regular outreach. We held over 25 high-level briefings during the year— including two strategic dialogues in Sydney and Melbourne—for the Australian business community. This enabled frank exchanges on geostrategic and economic developments, and helped position businesses to make informed decisions about commercial opportunities and the offshore operating environment.

Building opportunities for the resources and energy sector

Australia’s network of overseas diplomatic missions plays a valuable role in helping Australian businesses access commercial opportunities, navigate market challenges,

and understand political developments, in overseas markets. It is an important resource for Australian business. Jennifer Westacott, Chief Executive Officer

Business Council of Australia

In addition, together with Austrade, we delivered 14 information seminars and webinars—including in regional areas—promoting awareness and use of free trade agreements. In response to COVID-19 restrictions, we and Austrade moved the seminars online. The total number of participants for the seminars and webinars over 2019-20 was 1,805. We also participated in industry stakeholder events and undertook a social media campaign to boost business awareness and use of Australian free trade agreements.

Working closely with whole-of-government partners, the department is helping build opportunities for the Australian resources and energy sector, and providing advice on international trade, climate and security policy that impacts domestic energy security issues. The department is implementing the international engagement aspects of the National Hydrogen Strategy, and discussions are underway including with Japan, the Republic of Korea and Germany. We coordinated international engagement on critical minerals following the release of the National

Critical Minerals Strategy. We also supported the government’s focus on financing critical minerals projects and related infrastructure through Export Finance Australia.

As Chair of the Voluntary Principles Initiative on Security and Human Rights, Australia has helped promote a responsible and sustainable global extractives industry in line with our national interests. We aim to increase implementation of the Voluntary Principles standard in the Indo-Pacific and around the world.

CHINA

23.4 %

$96.2 billion 51.8 %

COAL

GOLD

NATURAL GAS

IRON ORES AND

CONCENTRATES

EDUCATION- RELATED TRAVEL SERVICES

$63.9 billion 4.4 %

$48.7 billion 12.4 %

12.4%

$40.3 billion 14.5 %

$23.4 billion 22.1 %

Total value of exports $492.7 billion

Australia’s top 5 exports: goods and services

Australia’s goods and services exports by destination

PERSONAL TRAVEL (EXCL EDUCATION) SERVICES

REFINED PETROLEUM

CRUDE PETROLEUM

PASSENGER MOTOR

VEHICLES TELECOM

EQUIPMENT AND PARTS

$47.1 billion 4.7 %

$25.1 billion 0.1 %

$21.4 billion 4.5 %

$14.9 billion 3.4 %

$12.3 billion 10.6 %

2.3% Total value of imports $424.9 billion

Australia’s top 5 imports: goods and services

$168.6 billion

JAPAN

2.8 %

$60.4 billion

REPUBLIC OF KOREA

6.2 %

$28.2 billion

UNITED STATES

9.9 %

$25.4 billion

INDIA

2.8 %

$21.8 billion

$82.8

billion

CHINA

5.8 %

Australia’s goods and services imports by origin

UNITED STATES

9.2 %

$55.5 billion

JAPAN

2.3 %

$26.4 billion

GERMANY

2.3 %

$18.2 billion

THAILAND

2.9 %

$17.4 billion

Figure 6 Australia’s trade with the world 2019

PURSUE OUR ECONOMIC, TRADE AND INVESTMENT OPPORTUNITIES

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REPORT ON PERFORMANCE

DFAT ANNUAL REPORT 2019-20

Ensuring domestic policies support trade and investment Australian business faced unprecedented challenges in 2019-20, including devastating bushfires followed immediately by the COVID-19 crisis, related supply chain disruptions and subsequent economic downturn. We drew on the reach and expertise of our diplomatic network to provide detailed insights into global responses to COVID-19, informing Australia’s response and domestic policy settings. The department’s newly established Office of the Chief Economist facilitated high-level economic analysis and greater engagement in domestic policy formulation processes.

Performance measure How we rate our performance*

Trade and investment is factored into Australia’s economic On track policy settings.

Source: Corporate Plan 2019-20 p. 14 | Funding: PBS 2019-20 program 1.1 *Our assessments are informed by economic data, statistical analysis, diplomatic reporting on feedback from business, public polls and consultations, and contributions to whole-of-government policy

Our performance We assess our performance against this measure as ‘on track’. During the bushfires and COVID-19 we supported over 100 consultations with business, and weekly crisis video conferences with peak business bodies. Each day our state and territory offices and diplomatic network reached out to help individual businesses. We supported evidence-based decision making by responding to more than 2,000 requests for trade and investment data from the public, ministers and government departments.

The department developed trade and investment policy initiatives to support the COVID-19 response and recovery phases. Complementing other initiatives to sustain exporters—and position them to rebound quickly—the department worked with Export Finance Australia to establish the $500 million COVID-19 Export Capital Facility to support the government’s economic response to the pandemic. This facility is helping ensure Australia’s businesses are able to access vital financing support to ride out the crisis and recover stronger. The department also led efforts to suspend Australian tariffs on products needed to help combat the pandemic, such as medical devices and personal protective equipment.

We provided advice on a range of government proposals to alleviate the economic impact of COVID-19 on Australian businesses trading overseas, and on the Australian Government’s response to the crisis. For example, we advised the government on the International Freight Assistance Mechanism (IFAM) which helped restore critical supply chains disrupted by COVID-19. In addition to bringing Australian goods to market, IFAM also enabled much-needed medical supplies and equipment to be imported to Australia. We also advised on government proposals to help communities and businesses affected by the Australian bushfires, including initiatives to improve tourism, local production capability and employment.

The department ensured government policy initiatives took into account Australia’s international trade and investment obligations. We provided legal support for the gradual re-opening of Australia’s borders. Our advice on international trade law obligations covered 40 proposals under the $1 billion COVID-19 Relief and Recovery Fund, and 20 proposals under the $2 billion National Bushfire Recovery Fund. Our advice enabled the government to respond quickly, while ensuring Australia’s response was consistent with our international obligations and supported the global rules-based trading system. We also worked across agencies to minimise any unintended impacts from temporary export restrictions on certain COVID-19 related products to help combat hoarding and profiteering.

PURSUE OUR ECONOMIC, TRADE AND INVESTMENT OPPORTUNITIES

Secretary Frances Adamson speaks at the launch of the government’s response to Industry’s Recommendations - An Action Plan to Boost Australia’s Services Exports at Parliament House, Canberra [DFAT/Mark Graham]

We contributed to work undertaken across government on significant reforms to Australia’s foreign investment framework. Our advice helped ensure foreign investors understand the proposed reforms and that our international legal obligations were taken into account. We helped promote Australia as an attractive investment destination. We also supported the work of the Department of Home Affairs’ Critical Infrastructure Centre.

Despite the impact of COVID-19 on global investment conditions, in 2019-20 we supported strong foreign investment inflows by helping assess Foreign Investment Review Board (FIRB) applications. Referrals to the department increased 9.2 per cent compared to 2018-19. This helped the stock of foreign direct investment in Australia to reach a record level of $1.02 trillion at the end of 2019 and to bolster job creation.

Showcasing innovation, export capacity and diversity in the ‘Food Bowl’ of Victoria

The department’s Victoria state office As part of the visit, the delegation toured led a senior delegation of the a number of major agricultural producers Melbourne-based consular corps to and food processing facilities, and also Shepparton and the Goulburn Valley visited businesses across a variety of in October as part of our Economic sectors of increasing trade and investment and Commercial Diplomacy Agenda potential. This included education and to promote Australian business. biotech, and sustainability and water Shepparton is home to agricultural management. Economic and business and food-processing companies such development outcomes were achieved as SPC, Tatura Milk Industries and for the region through the visit, including Freedom Foods. This multicultural Rubicon Water’s scoping expedition to regional centre has more than 13 per Egypt and North Africa. cent of its population born overseas, and is home to an entrepreneurial Indigenous community with significant cultural, spiritual and historical heritage. It accounts for more than a quarter of Victoria’s agricultural production.

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Supporting Australian trade and investment outcomes During the year we pivoted our economic and commercial diplomacy agenda to help Australian businesses take advantage of global opportunities, and also to mitigate the challenges of COVID-19. We continued work to deliver the 2017 Foreign Policy White Paper commitment to bolster positive community sentiment toward trade and investment, and the benefits of economic openness.

Performance measure How we rate our performance*

Positive trade and investment outcomes supported by the On track department’s economic and commercial diplomacy and domestic advocacy efforts. Source: Corporate Plan 2019-20 p. 14 | Funding: PBS 2019-20 program 1.1

*Our assessments are informed by surveys, statistical analysis, progress in negotiations, diplomatic reporting on feedback from business and customs data

Our performance To help Australian businesses navigate rapid disruptions to their global markets and supply chains, we shared real-time market intelligence from our diplomatic and state and territory office network. We also mobilised our diplomatic network to support many individual businesses. We regularly connected our diplomats with peak business bodies, to position them to help Australian business respond to the COVID-19 crisis. We assess our performance against this measure as ‘on track’.

In February we supported an Australian media delegation visit to Indonesia. This generated domestic print and television reporting on the bilateral trade and investment relationship, including new market opportunities under IA-CEPA.

We deepened our engagement with young people through a forum in September which featured the top-placed entrants in an inaugural essay competition for high school and university students highlighting the benefits of trade.

Minister Assisting the Minister for Trade and Investment Andrew Gee speaking with cattle graziers at Pipers Flat, NSW, about new export opportunities available under the Indonesia-Australia Comprehensive Economic Partnership Agreement. Left to right: James Brazier, Tim Sullivan, Minister Andrew Gee and Brent Bannister [Trease Clarke]

PURSUE OUR ECONOMIC, TRADE AND INVESTMENT OPPORTUNITIES

We published market insights reports for over 70 countries, prepared by our diplomatic network. These reports help businesses World in a box identify and navigate new market opportunities. We also developed Staff and students

80 market-specific economic and commercial diplomacy strategies at the University of

to guide our posts’ support to Australian business. Adelaide’s Institute

for International Trade We held international business literacy courses in every state helped launch a short and territory during the year. These helped ensure that federal, film with the Minister state and territory, and local governments have the skills and for Trade, Tourism and relationships to support Australian business and capitalise on Investment, Senator global opportunities. We also provided input into Australia’s Simon Birmingham, next tourism strategy and shared international best practice in October. World in tourism recovery initiatives in relation to COVID-19. a Box celebrates the 50th anniversary of In November we delivered the first part of the industry-led Services the arrival of the first Export Action Plan and the government’s response. This included 44 international container recommendations to increase the competitiveness of our services ship in Australia. The exports. We worked closely with the health, creative, fintech and advent of trade via Mining Equipment, Technology and Services (METS) sectors to shipping container identify further recommendations. revolutionised Australia’s

trade with the world. The

The department supported Australian professional bodies to department supported

advance mutual recognition arrangements in seven professions the production of the

across 10 economies. This included a new mutual recognition film, which is available at agreement for accountants in Singapore and a memorandum of www.rounding-up.com/ understanding for engineers in China. These arrangements will world-in-a-box/ help Australian professionals meet local licensing, registration and other requirements, making it easier for them to provide their services overseas. In recognition of our progress in this area, Australia was invited to lead capacity-building initiatives across Asia-Pacific economies as the 2020 APEC Champion for mutual recognition agreements and professional licensure.

As a global, diversified financial group operating in 31 markets, Macquarie maintains a close, longstanding working relationship with the Department of Foreign Affairs and Trade. Over many years, DFAT’s expertise and engagement

has supported the growth of our businesses in new and established international markets. We value and commend the counsel and advocacy that DFAT provides for our organisation and for

Australian businesses more broadly. - Macquar ie Group

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We met regularly with industry to advance a whole-of-government action plan to address non-tariff barriers (NTBs) that restrict Australian exports. A department-managed NTB Gateway website, tradebarriers.gov.au, was established to enable businesses to register concerns about specific NTBs (over 300 actual and potential NTBs across more than 70 markets have been listed). We are working on a new NTB case management system to facilitate whole-of-government coordination and action. Roundtables were held with industry to discuss NTBs in the seafood, services and innovation sectors.

Figure 7 Non-Tariff Barriers Action Plan: taking action on trade barriers

300+ 10,000+ 70+

Actual and potential Businesses Markets

non-tariff barriers provided updates where we are

being addressed on the Non-Tariff working to remove or

across government Barrier Action Plan reduce trade barriers

20+ 30+

Industry sectors Agricultural

assisted by government market access

regarding actual or achievements

potential non-tariff barriers

*Based on aggregated data from NTB Action Plan government partners: the Departments of Agriculture, Water and the Environment; Foreign Affairs and Trade; Industry Science, Energy and Resources; and Austrade

Increasing market access through innovative approaches to NTBs

Australia’s innovative approaches to will continue work with trading partners non-tariff barriers have opened up and exporters to drive positive, long-new market access opportunities. term trade facilitating changes post-During COVID-19, we advocated for COVID-19. For example, our in-transit e-documentation where possible for cold treatment of malting barley, Australian exporters. This helped get apples, stone fruit and table grapes has Australian goods into countries faster created new opportunities for Australian and minimised disruptions to the supply products to be exported to India. of Australian products. The government

KEEP AUSTRALIA AND AUSTRALIANS SAFE AND SECURE

We have worked with determination to support the government’s fundamental responsibility to ensure the safety and security of Australia and Australians. The 2017 Foreign Policy White Paper underlined the need for us to be more active in our efforts to shape a global balance favourable to our interests. Increased major power competition continues to generate heightened uncertainty elevating the risks of miscalculation and instability. Traditional and emerging security threats have continued to evolve.

Our international engagement has been vital to upholding and building the network of rules, norms and institutions that govern peace and security and enable the international community to take action. We have worked to enforce these rules and to adapt them to new threats. We have continued to build strong coalitions with partners to tackle pernicious and complex security threats and constrain the exercise of coercive power. We have called out violations of the rules and sought to hold state and non-state actors to account.

The government’s extensive measures to strengthen Australia’s national resilience to a range of emerging threats have been amplified by our international work, generating significant interest from partners. We have fortified Australia’s domestic measures by encouraging regional resilience and capacity. Our work is reinforcing Australia’s sovereignty and that of our neighbours.

The long-term security implications of COVID-19 are not yet clear but it is unlikely to have quelled the activities of malign actors and has created a more permissive environment for some. Disinformation has flourished, undermining public health messaging with potential deadly consequences. The pandemic caused the postponement of some important global rule-setting conferences, but the international architecture is holding up with some significant progress achieved in some areas.

Promoting Australia’s security interests

Performance measure How we rate our performance*

Effective outcomes that promote Australia’s security On track interests in:

• counter-terrorism

• an open, free and secure cyberspace

• confidence-building measures and strong rules and laws that apply to space

• reduction of weapons of mass destruction and conventional weapons risks, and

• countering foreign interference. Source: Corporate Plan 2019-20 p. 15, PBS 2019-20 program 1.1 p. 28 | Funding: PBS 2019-20 programs 1.1, 1.2, 1.3 and 1.4 *Our assessments are informed by progress in adopting and implementing norms of behaviour, UN resolutions, robust statements and commitments in international organisations and forums, agreements with foreign governments, feedback from partner agencies and civil society, and diplomatic reporting

Our performance Despite considerable disruption during the year due to COVID-19 we achieved significant progress against this performance measure. Overall we assess our performance as ‘on track’.

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Countering terrorism and violent extremism International terrorism continues to threaten Australia’s national security. Our work to enhance regional and global cooperation on terrorism and violent extremism helps protect Australia and Australians. COVID-19 affected both the terrorism threat environment in our region and how we engaged with partners to counter that threat. Violent extremists stayed connected online and sought to exploit the pandemic in their propaganda.

The Ambassador for Counter-Terrorism led engagement to promote and consolidate strong relationships with Australia’s regional and strategic partners, helping to improve legal and policy frameworks and capacity and capability to counter terrorism and violent extremism. The Ambassador led whole-of-government consultations with Indonesia (July), Thailand (August), Malaysia (September) and the Philippines (March). We adapted quickly to continue bilateral and multilateral counter-terrorism cooperation online.

The consultations strengthened operational relationships and technical assistance, and helped enhance Australia’s national security and the security of Australians and Australian interests in partner countries. Outcomes included the Philippines Congress adopting counter-terrorism reforms in June, and modelling key aspects—such as preparatory offences—on Australian practice.

We maintained Australian leadership in the Global Counterterrorism Forum (GCTF), a multi-state body that strengthens global counter-terrorism norms by developing best practices for policy makers and practitioners. Australia co-chaired with Indonesia the Forum’s Working Group on Countering Violent Extremism and progressed its Initiative on National-Local Cooperation in Preventing and Countering Violent Extremism. In April we moved the initiative online and conducted a series of webinars with representatives from more than 20 countries, including national and local governments, civil society, multilateral organisations, academia and the private sector.

Mainstreaming gender in Countering Violent Extremism

We played a leading role in mainstreaming GCTF Good Practices on Women and gender perspectives in setting international Countering Violent Extremism. GCTF norms on Countering Violent Extremism members welcomed the addendum (CVE) to generate a deeper understanding as a significant contribution toward of the motivations behind female mainstreaming gender in CVE, by radicalisation to violence, the role of providing clear direction on effective women and girls in terrorist organisations, policy design. GCTF ministers endorsed and their roles in preventing and the addendum in September, providing countering violent extremism. guidance to governments on gender-

sensitive CVE approaches in line with

As co-chairs of the Global

UN Security Council Resolution 2242 on

Counterterrorism Forum’s CVE Working Women, Peace, and Security.

Group, Australia and Indonesia led the development of the Addendum to the

In Africa, the evolving security situation in the Sahel presented challenges for Australian companies whose interests and personnel are vulnerable to terrorist activity. We liaised closely with like-minded and host countries to help Australian companies address security risks. COVID-19 caused the postponement of the second West Africa Mining Security Conference, which we were due to host in May. This initiative will be rescheduled when circumstances allow.

KEEP AUSTRALIA AND AUSTRALIANS SAFE AND SECURE

We supported the Minister for Foreign Affairs in her exercise of counter-terrorism financing powers under Part 4 of the Charter of the United Nations Act 1945. The Minister listed one new individual and renewed the existing listings of 28 individuals and 37 entities for a further three years. These targeted financial sanctions help prevent terrorists and terrorist organisations from raising, moving and using funds.

Countering foreign interference and disinformation The department supported the government’s robust action domestically to counter foreign interference in Australia. We led the government’s diplomatic strategy to counter foreign interference—the CFI Diplomatic Strategy pilot program. This program focuses on cooperation with regional partners to enhance their resilience, as well as efforts to build support for stronger international norms against foreign interference.

In May we commenced a pilot program to counter COVID-19 disinformation in our region, focusing on amplifying a positive, accurate narrative around Australia’s response to the virus, our democratic values and COVID-19 assistance. We called out egregious disinformation contrary to Australia’s national security interests and co-led a cross-regional statement in the United Nations on the ‘Infodemic’ in the context of COVID-19 which was co-sponsored by over 120 countries.

With the United Kingdom, we hosted a workshop in March with the Singapore Institute of International Affairs on building strategic communications to counter disinformation. The workshop focused on best practice to counter threats from fake news and foreign interference. The initiative built capability of officials from ASEAN governments to better understand and counter hostile disinformation.

Advocating for an open, free and secure cyberspace The importance of the internet in daily life has been reinforced with more Australians working from home because of COVID-19. Malicious cyber actors—whether rogue states or criminals—have sought to exploit this changing environment for strategic or financial gain, including through cybercrime, disinformation and malicious activity designed to damage or impair the operation of hospitals, medical services and facilities.

Australia’s ability to benefit from global connectivity depends on cyberspace remaining open, free and secure. This hinges on states adhering to existing international law and agreed norms of responsible behaviour. We must also strengthen our collective capacity to deter and respond to malicious incidents.

As part of the government’s enhanced approach to managing our national security interests in critical technology, we expanded the role of the Ambassador for Cyber Affairs to include responsibility for critical technology. The Ambassador led whole-of-government international engagement through bilateral and multilateral forums, and is leading development of a cyber and critical technology international engagement strategy aimed at shaping the global cyber and technology environment and promoting Australia’s vision of technology as a tool for prosperity, social connection and keeping people safe.

We strengthened our cyber and critical technology collaboration with key Indo-Pacific countries, including through bilateral cooperation agreements with Singapore and India. These agreements provide new opportunities for Australian industry and businesses. They will:

• help shape a more interconnected technology environment

• improve private sector innovation and productivity

• enable practical international cooperation to achieve a cyber-resilient Indo-Pacific region.

Our innovative and proactive international outreach in response to COVID-19 meant our key international partners were mobilised and cooperating to ensure the pandemic did not undermine Australia’s long-term interests and goals in cyberspace. Australia and Denmark hosted cyber and tech ambassadors from 25 countries across 19 time zones for the first Cyber and Tech Retreat virtual ‘check-in’ to share best practice response to threats exacerbated by COVID-19.

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Protecting cyberspace during COVID-19

As malicious cyber actors sought to take Japan, Kazakhstan and the United States advantage of the COVID-19 pandemic, on protecting health infrastructure from the department joined international malicious cyber activity. partners to call out this unacceptable

We also issued a joint statement with the

behaviour, and to encourage all

Australian Cyber Security Centre urging

countries to uphold their commitments all countries to:

to existing international law and norms of responsible state behaviour in • immediately cease any cyber cyberspace. The Ambassador for Cyber activity—or support for such Affairs and Critical Technology delivered activity—that is inconsistent with a statement—an Australian first during existing international law and agreed an informal UN Security Council cyber norms of behaviour debate—calling for greater adherence

• take all reasonable measures to

to the rules already agreed, and greater protect against this malicious

accountability when they are broken. behaviour occurring in their

At the UN Open-Ended Working Group jurisdictions.

on cyber, Australia introduced a joint proposal with the Czech Republic, Estonia,

Australia will continue to call out malicious, state-sponsored cyber activity, particularly where it threatens to undermine global economic growth, national security and international stability. In September the Minister for Foreign Affairs co-sponsored with the United States and the Netherlands the Joint Statement on Advancing Responsible State Behaviour in Cyberspace. In February we joined with international partners to publicly attribute malicious cyber activity by Russia against Georgia.

We pivoted activities under our flagship seven-year, $34 million Cyber Cooperation Program to respond to malicious cyber activity exploiting the pandemic. The program supported activities to:

• improve knowledge and understanding of how international law and norms apply in cyberspace

• improve partners’ ability to investigate and prosecute cybercrime

• strengthen capacity to better secure information and communication technology systems.

We continued to deliver on our goal of enhancing Papua New Guinea’s cyber security capability through our $14 million Australia-Papua New Guinea Cyber Security Cooperation Program. The program delivers accredited cybersecurity training for government and industry. Although COVID-19 disrupted some course delivery, eight trainees completed a tier 1 cyber security analyst (CSA) course, with up to another 30 trainees set to undergo this course in 2020-21. Two trainees began a pilot of a remotely delivered tier 2 CSA course, with the potential for another six to commence in 2020-21 pending evaluation of the pilot.

In June the government announced a new four-year, $12.7 million Australia-India Cyber and Critical Technology Partnership, to be coordinated by the department.

Advocating for responsible behaviour in space Space is an increasingly contested domain which brings both opportunities and risks for Australia. We continued work to shape rules and norms on responsible behaviour in space within the United Nations and other forums. In January we co-sponsored and supported a Wilton Park conference in Singapore where policy makers from 18 Indo-Pacific countries considered protocols and mechanisms to improve

KEEP AUSTRALIA AND AUSTRALIANS SAFE AND SECURE

communication between commercial and government satellite operators—and between states—to reduce the perception of threats in outer space.

In October at the UN General Assembly First Committee devoted to disarmament and international security, we worked to encourage both stability and responsible behaviour in space, promoting international cooperation. The aim is to build transparency and confidence between nations, rather than an outright prohibitions-based approach, which fails to recognise the dual-use nature of many space objects.

Advocating for arms control and counter-proliferation The threat posed by nuclear, chemical, biological and conventional weapons has not diminished. Our work to progress arms control, disarmament and counter-proliferation priorities was strengthened by the appointment in December of Australia’s inaugural Ambassador for Arms Control and Counter-Proliferation.

On nuclear weapons, in November we supported the Foreign Minister’s co-chairing of a Ministerial Meeting in Nagoya, Japan, as coordinator for the 12-country, cross-regional Non-Proliferation and Disarmament Initiative (NPDI).The ministers’ statement promoting the Nuclear Non-Proliferation Treaty as the cornerstone of the non-proliferation and disarmament regime was an important step to reinforce the treaty’s importance. A Review Conference in 2020 marking the 50th anniversary of the entry into force of the Non-Proliferation Treaty was delayed by COVID-19 and rescheduled for 2021.

We supported the Foreign Minister to issue statements on 24 August and 1 November condemning North Korea’s repeated shorter-range ballistic missile launches since May 2019. Any ballistic missile launch by North Korea, of any range, clearly violates multiple UN Security Council resolutions. Australia is strictly enforcing sanctions until North Korea takes clear steps towards complete, verifiable and irreversible denuclearisation. We also urged Iran to return to full compliance with the Joint Comprehensive Plan of Action, and joined efforts to ensure Iran cooperates fully with the International Atomic Energy Agency.

We led a number of key arms control bodies as Vice-President of the 74th session of the UN General Assembly First Committee, President of the Conference on Disarmament (CD) and Chair of the UN Disarmament Commission. COVID-19 meant we were unable to hold CD plenary meetings, so we focused our efforts on improving governance and started a process to make the rules of procedure gender neutral, to support our broader efforts to strengthen gender equality.

IAEA inspections during COVID-19

We maintained Australia’s longstanding physical inventory verification inspection support for the nuclear safeguards and in June at the Australian Nuclear Science inspection work of the International and Technology Organisation at Atomic Energy Agency (IAEA). In March Lucas Heights in Sydney. We negotiated IAEA Director General Rafael Grossi mutually acceptable conditions for the vowed that the IAEA’s safeguards and inspectors to enter and conduct their inspections work would ‘not stop for a work in Australia, in compliance with our single minute’ despite the challenges quarantine requirements. This included posed by COVID-19 restrictions. a complementary access inspection Australia complied fully with the under Australia’s Additional Protocol agency’s request to conduct the annual with the IAEA.

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The Comprehensive Nuclear-Test-Ban Treaty (CTBT) maintains a strong normative value against nuclear testing, underpinned by a world-class verification system. With Mexico and New Zealand, we maintained Australia’s leadership of the annual resolution at the UN General Assembly, calling for those yet to sign and ratify the treaty to do so. The Foreign Minister reinforced these calls at the 2019 CTBT Article XIV Conference in New York.

We achieved positive outcomes on chemical weapons through diplomatic efforts in the Organisation for the Prohibition of Chemical Weapons (OPCW) to ensure all chemical weapon users—and those who enable or shield those who use chemical weapons—are held responsible. The Foreign Minister issued a strong statement in April in response to the OPCW’s first report under a new mechanism, which Australian diplomatic efforts helped establish, to investigate whether a chemical attack has taken place and determine who was responsible. The OPCW concluded there were reasonable grounds to believe the Syrian Arab Air Force used chemical weapons on three occasions in March 2017.

We worked with OPCW member states to add additional nerve agents—including Novichok agents—to the relevant Schedule of the Chemical Weapons Convention (CWC). This was formalised in November at the Conference of the States Parties to the Chemical Weapons Convention. Australia contributed $200,000 to the OPCW’s Centre for Chemistry and Technology project to ensure it is well-placed to respond to future chemical weapons threats.

The Australian Safeguards and Non-Proliferation Office (ASNO) ensured that CWC changes were given effect in Australian regulations so that the CWC continues to be fully implemented in Australia.

We maintained Australia’s strong engagement in export control regimes and related international instruments, including the practical implementation of Australia’s obligations in promoting effective and responsible arms control. As permanent Chair of the Australia Group strategic export control

Counsellor for Disarmament Affairs at the Australian Mission to the UN in Geneva Vanessa Wood delivers a statement outlining Australia’s collaborative approach to its Presidency of the Conference on Disarmament in 2020 [DFAT/ Thuy Nguyen]

KEEP AUSTRALIA AND AUSTRALIANS SAFE AND SECURE

regime, we helped limit risks of proliferation of chemical and biological weapons of mass destruction to countries of concern and non-state actors, and strengthened global counter-proliferation architecture.

A workshop planned for early June on conventional weapons and arms regulation treaties in the Pacific was deferred due to COVID-19. The scheduled Seventh Biennial Meeting of States to the United Nations Plan of Action on Small Arms and Light Weapons was also postponed to 2021.

We provided financial support to the Arms Trade Treaty Voluntary Trust Fund and the United Nations Trust Facility Supporting Cooperation on Arms Regulation, enabling these bodies to continue their valuable work promoting responsible and effective arms control.

We maintained constructive engagement in multilateral bodies working to address the challenges of artificial intelligence and robotics in military capabilities, including the UN Group of Governmental Experts on Lethal Autonomous Weapons Systems (LAWS). We voiced support for the overarching principle that international humanitarian law applies to all weapons systems, and argued that beneficial research and developing artificial intelligence for use in the civilian sector should not be stifled by policy measures relating to the potential development of LAWS.

The department demonstrated its commitment to gender-sensitive approaches to security and disarmament issues.

• In August we delivered strong statements on the important role of the Arms Trade Treaty in reducing gender-based violence and addressing the Women, Peace and Security agenda.

• We supported the inclusion of substantive gender-sensitive measures in the Anti-Personnel Mine Ban Convention’s Oslo Action Plan in December.

• We also progressed gender-inclusive disarmament through our leadership role as co-chair of the Group of Friends for Women in Nuclear initiative, which is seeking to increase the representation of women in the International Atomic Energy Agency’s Secretariat.

Tackling irregular migration and human trafficking People smuggling and human trafficking has the potential to undermine our security and the security of our region. Regional and international engagement remains critically important—no country can tackle these transnational issues alone. We worked to increase participation by governments, international groupings, the private sector and civil society, including against the background of COVID-19 and consequent strengthening of international border settings.

Performance measure How we rate our performance*

Enhanced participation by states, business and United On track Nations agencies in the Bali Process, Alliance 8.7 and other multilateral migration organisations and agreements in line with Australia’s interests.

Source: Corporate Plan 2019-20 p. 16 | Funding: PBS 2019-20 programs 1.1, 1.2 and 1.4 *Our assessments are informed by feedback from the membership and outcomes of the Bali Process meetings, diplomatic reporting and engagement with other partners

Our performance COVID-19 has caused economic disruption and increased risks to vulnerable populations around the world. It also affected, and in some cases delayed, how we work to tackle people smuggling and human trafficking.

The Ambassador for People Smuggling and Human Trafficking led work with regional countries to deter people smugglers who risk the lives of the most vulnerable people. We continued advocacy in support of Australia’s strong border protection settings and engaged internationally on refugee resettlement and regional processing issues. Overall, we assess our performance against this measure as ‘on track’.

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The department worked to enhance participation in the Bali Process on People Smuggling, Trafficking in Persons and Related Transnational Crime, facilitating and co-chairing a number of its meetings. The Ad Hoc Group Senior Officials meeting in Danang, Vietnam in July advanced the Bali Process program of work. When COVID-19 forced the postponement of subsequent meetings, we worked with co-chair Indonesia to find virtual and new ways of engaging members to take the agenda forward, including in advance of the next ministerial conference.

Our work to enhance participation in these processes also built on the outcomes of the 2018 ministerial conference, which confirmed the Government and Business Forum (GABF) as an additional new track of the Bali Process. We worked closely with Minderoo/Walk Free to build stakeholder engagement in the GABF, recognising the importance of governments and business working together to improve supply chain transparency, ethical recruitment and worker redress to tackle human trafficking and modern slavery.

We led Australia’s engagement with the Financial Sector Commission on Modern Slavery and Human Trafficking—supporting the Foreign Minister as co-convener with the Foreign Ministers of the Netherlands and Liechtenstein—which engages the financial sector on countering moder n slavery and human trafficking. The commission’s deliberations culminated in the release of a Blueprint for Mobilizing Finance Against Slavery and Trafficking (FAST) in September. We encouraged governments, financial institutions and industry to engage with FAST by disseminating the Blueprint in our region, and at the UN Forum on Business and Human Rights in November.

As a member and former Chair of the Global Coordinating Group, Australia remained strongly committed to supporting Alliance 8.7—a partnership of governments, UN agencies, businesses and civil society. The group is committed to pursuing Sustainable Development Goal 8.7 to eradicate forced labour, end modern slavery and human trafficking, and to secure the prohibition and elimination of the worst forms of child labour. In November the Ambassador for People Smuggling and Human Trafficking delivered the keynote address at the inaugural Asian Regional meeting of pathfinder countries in Nepal. The session underscored the importance of regional governments ratifying and implementing the relevant international legal instruments.

The department consulted experts and stakeholders to update Australia’s current (2016) International Strategy on Human Trafficking and Slavery. This will outline key international priorities consistent with Australia’s National Action Plan on Human Trafficking and Modern Slavery. Submissions from business and civil society will help develop a new strategy.

Working with the National Intelligence Community

Performance measure How we rate our performance*

Full participation in the National Intelligence Community’s governance architecture—including through the Office of National Intelligence-led prioritisation and evaluation process— to ensure support for Australia’s foreign policy interests.

On track

Source: Corporate Plan 2019-20 p. 16 | Funding: PBS 2019-20 program 1.1 *Our assessment is informed by National Intelligence Community stakeholder feedback and close engagement by relevant DFAT line areas

Our performance We are participating in the National Intelligence Community’s governance architecture to support Australia’s foreign policy interests. This includes the international implications of COVID-19. We also engaged in the comprehensive review of the legal framework governing the National Intelligence Community, known as the Richardson Review. The review has provided a classified report and an unclassified report to the government. We rate our performance against this measure as ‘on track’.

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

Australia’s $4 billion† international development program is an important national asset and a powerful mechanism to support sustainable development and to build partnerships across the world, particularly in our region. The Indo-Pacific is where we have the most extensive partnerships and can make the most impact.

The full extent of COVID-19’s impact is still playing out, but global poverty rates are estimated to rise for the first time since 1998. Our region is not immune. The growth, openness and stability of the Indo-Pacific, which has underpinned Australia’s prosperity and security for decades, is at risk.

Our development program has made and will continue to make a meaningful contribution to support our neighbours to tackle the impacts of COVID-19, address their most pressing development needs, and foster inclusive economic recovery and stability in our region. To maximise impact, the development program will continue to work in step with Australia’s full suite of national capabilities, including diplomacy, defence, economic ties, scientific skills and people-to-people links.

Figure 8 DFAT official development assistance, 2019-20 Budget Estimate

Middle East and Africa $192.1m

South and West Asia $259.5m

Latin America and the Caribbean $3.3m

Southeast and East Asia $806.5m

Pacific $1.2b

Other ODA not attributable to particular countries plus departmental

$1.1b

$3.6b Total*

* Difference due to rounding

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Promoting a stable and prosperous region Our development program complements other steps the government is taking to help make our region more stable and more prosperous. Australia and our neighbours benefit when our region is healthy, prosperous and stable. This is why we worked to reduce poverty and improve education and health outcomes, and it is a primary driver for the Pacific Step-up. It is why we continued to invest in priority infrastructure like the Coral Sea Cable System (CS²), which will open up access to technology and new opportunities across neighbouring countries.

The department responded to the emerging challenge of COVID-19 by pivoting Australia’s development program to support our neighbours. This involved an initial rapid redirection of $280 million from across the development program—including from investments disrupted by the pandemic—and a refocus of existing investments guided by the new development strategy, Partnerships for Recovery. In some cases, existing or planned activities were no longer relevant or could not proceed due to travel and movement restrictions. For example, travel restrictions meant we were unable to receive new Australia Awards scholarship students. In other cases, existing programs were able to change how they were working to respond directly to the pandemic. For example, in Vietnam the Aus4Equality program, which works with female independent tourism operators, shifted its focus to help women find new sources of income due to the impact of COVID-19 on their existing tourism businesses.

The new strategy resets our development program to tackle COVID-19 with a focus on health security, stability and economic recovery. Our priorities continue to include the most vulnerable people in our region, particularly women and girls, people with disability and those living in poverty. Our development program can make a critical contribution to regional recovery.

Performance measure How we rate our performance*

Australia’s interests are promoted by our development Partially on track, because of the program: impact of COVID-19

• investments promote sustainable and inclusive economic growth and poverty reduction

• 90 per cent of country attributable development assistance spent in the Indo-Pacific, and

• Indo-Pacific countries make progress towards achieving the Sustainable Development Goals. Source: Corporate Plan 2019-20 p. 17, PBS 2019-20 programs 1.2 and 1.3 pp. 29-31 | Funding: PBS 2019-20 programs 1.2 and 1.3 *Our assessments are informed by Aid Quality Checks, Business Review processes, independent evaluations, surveys, reporting by program partners, and the multilateral performance framework

Our performance In 2019-20 the department managed $3.6 billion of the Australian Government’s $4 billion development program.† Based on our estimates, we have exceeded our target of 90 per cent of country-attributable development assistance being spent in the Indo-Pacific. Actual expenditure across the entire development program will be published in December following collection of information from other government departments and delivery partners. Some of our financial reporting in this chapter is based on Budget Estimates because of the disruptions caused by the extraordinary circumstances of the pandemic. This is referenced in the endnote to this chapter. Details of Budget Estimates are at Appendix 4.

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

The first half of 2019-20 saw positive gains against a range of development indicators including the Sustainable Development Goals (SDGs) such as:

• health, early warning systems and vaccines (SDGs 3 and 6)

• good decision-making and governance (SDG 16)

• jobs, growth and sustainable consumption (SDGs 4, 8, 12 and 15)

• ensuring the most vulnerable are not left behind (SDGs 5 and 10)

• addressing climate change and building resilience (SDG 13).

However the impact of COVID-19 has substantially disrupted economic growth and affected the delivery of programs. Notwithstanding the gains made pre-COVID-19, progress has been affected and consequently we have rated our performance under this measure as ‘partially on track’.

Health security

Australian High Commission Fiji Regional Health Program Manager Dr Frances Bingwor receives medical supplies, including critical GeneXpert test cartridges for Fiji. The cartridges were delivered by the Royal Australian Air Force and procured by the World Health Organization with funding from the department, New Zealand’s Ministry of Foreign Affairs and Trade, the Pacific Community and the Pacific Island Health Officers Association. Australia and its partners are working together to ensure Fiji and all our Pacific neighbours have access to world-class COVID-19 test kits that produce accurate results within 45 minutes [DFAT/Aaron Ballekom]

Working across government, the Indo-Pacific Centre for Health Security has positioned Australia to respond with speed to the health security challenges of COVID-19, channelling support, investments and technical advice to country and regional partners.

This enabled the provision of 15,000kg of personal protective equipment—such as masks and goggles—and medical equipment, and the deployment of experts to health ministries across

our region. We provided vital support to develop COVID-19 vaccines and diagnostics with funding to the Coalition for Epidemic Preparedness Innovations (CEPI) and the Foundation for Innovative New Diagnostics (FIND). On 30 June the Foreign Minister announced a $23 million package to enhance cooperation with the Association of Southeast Asian Nations (ASEAN) to combat COVID-19 with a focus on health security, stability and economic recovery.

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Pacific Australia’s $1.4 billion development program for the Pacific, of which DFAT managed $1.2 billion †, helped partners progress towards achieving the Sustainable Development Goals (SDGs), supported Pacific island countries towards economic sustainability and assisted their responses to COVID-19. Our programs supported:

• around 11,000 Pacific and Timorese workers to secure employment in Australia under the Seasonal Worker Programme and Pacific Labour Schemes, providing remittances critical to their communities and economies and supporting rival and regional Australian businesses to fill critical labour shortages

• 5,975 students to graduate from the University of the South Pacific in 2019

• 1,306 Pacific islanders to obtain internationally recognised technical and vocational education and training qualifications

• climate-resilient initiatives, such as the construction of modern, climate-resilient government buildings in Tonga, following damage to Tonga’s Parliament House during Cyclone Gita in 2018.

The Australian Infrastructure Financing Facility for the Pacific (AIFFP), operational since 1 July 2019, assessed potential projects in sectors such as renewable energy, telecommunications, airports and transport infrastructure, and flood mitigation. Our continued investment ($625 million 2014-2022) to maintain national roads across Papua New Guinea helped drive economic growth by connecting towns and communities, and supported the PNG Government to deliver a planned and prioritised road maintenance program. We exceeded our $300 million (2016-2020) commitment to support climate change and disaster resilience initiatives in the Pacific, and the Australian Government has further committed $500 million (2020-2025) for renewable energy, and climate change and disaster resilience support.

Minister for International Development and the Pacific, Alex Hawke, and then Vanuatu Minister for Education and Training, Jean-Pierre Nirua, at the ground-breaking ceremony for the reconstruction of the National Fitness and Evacuation Centre in Port Vila, Vanuatu. Australia was the main sponsor for the demolishing and rebuilding of the complex, which was damaged in Tropical Cyclone Pam [DFAT/Australian High Commission in Vanuatu]

Social protection

We moved quickly to provide assistance to 14 countries to deliver social protection initiatives—extending economic lifelines to households, businesses and vulnerable groups directly affected by COVID-19, including in Timor-Leste, Fiji, Tonga, Vanuatu, Indonesia and the Philippines.

This builds on Australia’s ongoing efforts to improve the coverage and quality of social protection in the Indo-Pacific. These interventions often focus on women and, in Timor-Leste and Tonga, transfers are also provided through dedicated programs for people with disability. In Timor-Leste, we provided technical and logistics assistance to help the Timor-Leste Government expand its social protection system with a temporary program providing US$200 of Timor-Leste Government funds to every poor household in the country.

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

The pandemic threatens development progress in the Pacific as well as the effectiveness of our development programs. In March, as part of Australia’s $280 million response, we repurposed existing funding to deliver $100 million in immediate financing to Papua New Guinea, Fiji, Solomon Islands, Samoa, Tonga, Nauru, Kiribati, Vanuatu, Tuvalu and Timor-Leste. The Pacific and Timor-Leste COVID-19 Response Package supported poverty reduction, COVID-19-specific health system support and budget support to meet immediate finance needs. For example we supported Fiji to prepare for and respond to COVID-19 with more than $17.5 million in assistance, two-thirds of which was in direct budget support to enable delivery of critical government services, such as public health and social welfare. We also provided $4.5 million through Vanuatu’s Ministry of Finance and Economic Management to support its Employment Stabilisation Payment, the centrepiece of the Vanuatu Government’s stimulus package.

We responded to more than 80 requests for COVID-19 assistance from Pacific neighbours and Timor-Leste, cementing our health security partnerships. These involve many of Australia’s premier health and medical research institutions, focused on laboratory strengthening, disease surveillance, field epidemiology, and infection prevention and control.

We helped Pacific island countries with quarantine support to reduce the spread of COVID-19. For example in Solomon Islands we established a temporary quarantine facility and procured diagnostic equipment for accurate in-country testing. This enabled the publication and distribution of community awareness materials and 500 hygiene kits for people in quarantine.

Gender equality in the Pacific Gender equality in the Pacific remains a key foreign policy and development priority, and a core component of the Pacific Step-up. In 2019 activities through Pacific Women ($320 million 2012-2022) reached an estimated 208,529 Pacific island women and children. This included providing:

• crisis services to 21,123 women and children

• skills building and training for 4,808 women

• access to financial literacy services and information to an estimated 3,492 women.

In August we launched the Pacific Girl program in six countries to support adolescent girls achieve their potential. We reoriented our Pacific Women investments to support women’s safety, economic security and meaningful participation in national COVID-19 response efforts.

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Counsellor Nick Cumpston, Second Secretary Amanda Andonovski (blue hats) and Senior Coordinator Joaquim Viana (front right) from the Australian Embassy Dili participate in an onion harvest in Baucau, Timor-Leste with farmers supported by TOMAK, a nutrition and agricultural livelihoods program funded by Australia [TOMAK/Modesto Lopes]

Southeast and East Asia The department provided an estimated $806.5 million† through our development program to Southeast Asia and East Asia in 2019-20. This is helping to build prosperity, stability and resilience, and to support our neighbours’ response to COVID-19.

In Indonesia Australian expertise supported government efforts to improve budgeting, taxation, education and social safety net systems, and infrastructure planning. In Vietnam we supported the government’s economic priorities through investments in infrastructure and policy-making. Our Aus4Reform program helped reduce business regulations in Vietnam, while the Australia-World Bank Strategic Partnership II successfully advocated for improved clauses for gender equality in Vietnam’s Labour Code to equalise entitlements and protections at work.

Through the Decentralizing Funding for Schools Program in Myanmar, Australian-funded stipends enabled more than 200,000 vulnerable students to attend school in 55 townships, including in Rakhine State. The Livelihoods and Food Security Fund improved social cohesion and livelihood opportunities in Rakhine State and other conflict-affected areas.

We supported Southeast Asian governments to counter threats and respond to shared regional challenges. In August 2019 the Foreign Minister announced the Mekong-Australia Program on Transnational Crime, a new regional program that will support local efforts to tackle serious threats such as drug trafficking, child sexual exploitation and financial crimes. In the Philippines, we supported the peace process by:

• providing economic opportunities for former militants

• delivering training for the new transitional government

• supporting long-term stability and development in the Bangsamoro Autonomous Region in Muslim Mindanao.

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

This assistance focused on improving school enrolments, an inclusive curriculum, and recruiting and training 1,000 new teachers.

As part of Partnerships for Recovery, the Foreign Minister announced in June a targeted COVID-19 response package for Southeast Asia. In Timor-Leste our assistance helped establish isolation facilities, trained over 1,600 health workers, delivered essential medical supplies and provided funding for critical community infrastructure projects to support economic recovery. We accelerated partnerships in health security and disaster risk management in Indonesia. In Laos we facilitated training for staff in emergency operations centres, and provided supplies for hospitals and technical specialists in infection prevention and intensive care. In addition to the COVID-19 support package, our health assistance in Cambodia helped ensure 2.4 million poor Cambodians maintained access to free healthcare and supported the purchase of 20 new ambulances in line with the Royal Cambodian Government’s COVID-19 response.

Gender equality

This year the department has • the Water for Women program

spent approximately $1.3 billion on (2017-2022), to enable an additional investments that contribute towards four million people to access safe gender equality and women’s and affordable water and sanitation

empowerment. This remains a high facilities, and improve hygiene priority for Australia. High-level practices

engagement and advocacy led by the • an emergency relief and resilience

Foreign Minister has raised the profile fund through Investing in Women.

of gender equality as an important This helped women’s small and

feature in the response to COVID-19. We medium enterprises in Southeast Asia

supported this by providing assistance respond to the pandemic.

that targets immediate and long-term needs, including support for: In November an independent evaluation of Australia’s efforts in ending violence • women and girls affected by violence.

against women and girls in the

$10 million has been granted for Indo-Pacific found we had provided

UN Women to deliver essential strong and sustained regional

services and targeted support across leadership which helped to build partner

the Indo-Pacific over three years government commitment and capacity

(2020-2022). In addition, through our to address this major problem.

Nabilan program, we worked with the Government of Timor-Leste to help prevent the spread of COVID-19 in women’s shelters

South and West Asia The department focused our $260 million† in development cooperation in South and West Asia on inclusive economic growth and regional connectivity, climate resilience, and the empowerment of women and girls. We reprioritised our investments to assist the response to COVID-19. Progress against the SDGs was mixed across the region.

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The Sustainable Development Investment Portfolio finalised its second phase, addressing growing water, food and energy insecurity across Nepal, India, Pakistan, Bangladesh, Bhutan and Afghanistan. An independent evaluation found the program achieved particular success in contributing to climate change adaptation and mitigation. For example in India we supported more than 10,000 women to work as sales agents for quality off-grid solar products.

We mobilised the South Asia Regional Infrastructure Connectivity Program to improve economic integration and connectivity in South Asia. We supported the growth of cross border trade through the South Asia Regional Trade Facilitation Program. This included developing a tourism plan linking historical sites across India, Nepal and Bhutan to boost tourism revenue. In partnership with UN Women in Afghanistan, we helped provide shelter and support services to more than 1,200 women and nearly 300 children who are survivors of gender-based violence. We strengthened this support early in the pandemic in response to a spike in gender-based violence.

Professionals from across the region benefited from scholarships, short courses and other learning opportunities through the Australia Awards program. More than half of the 833 scholars commencing long-term awards were women—an important result for one of the most gender-inequitable regions in the world.

Under our Strategic Partnership with the largest NGO in Bangladesh—BRAC—Australia helped more than 700,000 children to access quality education. In addition we supported our partners in Bangladesh to respond quickly to COVID-19, including through health awareness campaigns and the supply of immediate food and income support.

Africa and the Middle East The department provided approximately $192 million† through our development program in Africa and the Middle East. This includes bilateral, humanitarian and other funding. More information on our humanitarian support is on page 72.

In Africa, Australia Awards enabled around 300 professionals from government, civil society and the private sector in 19 countries to complete courses in Australia, building people-to-people links and supporting economic engagement, including with Australian universities.

We contributed $2 million to Geoscience Australia for its Digital Earth Africa satellite imagery platform. This will generate data to help African countries manage their water and food security resources, and economic recovery from COVID-19.

We provided approximately $42.6 million† of development assistance to the Palestinian Territories. This helped deliver basic health, education and livelihood services for Palestinians and focused on women’s economic self-sufficiency. We worked with partners to pivot approximately 30 per cent of this funding to address COVID-19. We funded frontline health services, personal protective equipment, ICU equipment and health education.

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

Disability

People with disability are among the International Disability Alliance and the poorest and most marginalised groups Disability Rights Advocacy Fund, in developing countries. Key to our to enable them to support approach is providing technical assistance disability-inclusive COVID-19 responses. and capacity building support, particularly Through these partnerships we for disabled people’s organisations. In supported sign language interpretation 2020 we extended our partnership with and other accessible information about CBM Australia to provide the virus in Cambodia, Indonesia, Samoa,

disability-inclusive technical assistance Solomon Islands and Timor-Leste and to our partners and staff across the advocacy campaigns. This advocacy Australian development program. helped prompt the Director-General of the World Health Organization to join

COVID-19 is likely to disproportionately the call for COVID-19 responses to be

affect people with disability. The

inclusive of people with disability and

department renewed its funding to key ensure their rights are protected.

international partners, including the

Working with others The department works in partnership with multilateral institutions, the private sector and non-government and community-based organisations to deliver an effective and responsive development program. This strengthens and extends our reach, and ensures we use Australian skills and knowledge. Our deep partnerships have enabled us to support a rapid response to COVID-19.

Multilateral partners We continued to strengthen the impact of our funding and engagement with multilateral and humanitarian organisations. The department led Australian negotiations on the 19th replenishment of the World Bank’s International Development Association (IDA19) fund. We championed strong allocations to Pacific countries, as well as policy commitments to enhance gender equality and disability inclusion, both of which were included in the final policy package. The department also worked with the World Bank Group and Asian Development Bank to influence their respective multi-billion dollar COVID-19 responses.

We worked closely with the:

• World Health Organization

• United Nations Population Fund

• Global Fund to Fight AIDS, Tuberculosis and Malaria (the Global Fund)

• GAVI, the Vaccine Alliance.

These long-standing multilateral partnerships are key to our support for essential health services, including sexual and reproductive health and routine immunisations. Across all of these partnerships we advocated strongly for a focus on the Indo-Pacific in response to COVID-19. In October we increased support to the Global Fund ($242 million from 2020-2022). The Global Fund is responding rapidly to COVID-19 through funding of USD 1 billion to prevent fragile health systems—including those in the Indo-Pacific— from becoming overwhelmed.

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Our multi-year core contributions to UN agencies helped them to respond flexibly and quickly to COVID-19, and to focus on a coordinated response in the Pacific. Our positions on the governing boards of the United Nations Development Programme and the United Nations Children’s Fund (UNICEF) contributed greater transparency and financial accountability, and stronger implementation of UN development system reform.

We piloted an annual performance process to provide better oversight and more consistent management of our multilateral investments. Performance reports were completed for 23 multilateral development and humanitarian partners, accounting for more than 90 per cent of Australia’s total multilateral development funding. The assessments demonstrated good performance by almost 80 per cent of organisations and adequate performance by a further 15 per cent, providing a strong basis for constructive engagement into the future. The department is also leading better and more coherent whole-of-government multilateral engagement on development issues.

The private sector We work in partnership with the private sector to harness private investment for development objectives in the Indo-Pacific. Catalysing private sector activity will be crucial for economic recovery from COVID-19. At the Pacific Islands Forum Leaders Meeting in August, the Prime Minister announced a $140 million fund to mobilise private sector investment in lower emission and climate-resilient technologies such as renewable energy, improved agricultural techniques and sustainable transport for the Pacific and Southeast Asia. Partnership arrangements have been finalised to operationalise the fund from the second half of 2020 subject to the restrictions of COVID-19.

In January we launched the Impact Private Sector Partnerships program, the next chapter of our successful Business Partnerships Platform. This will deepen our partnerships with the private sector across the Indo-Pacific, and particularly Samoa, Fiji, Vietnam and Sri Lanka, with a focus on supporting COVID-19 economic recovery. Through the Business Partnerships Platform, we co-invest with businesses to deliver benefits to people and communities alongside commer cial returns.

We have actively supported Business Partnerships Platform partners to respond to COVID-19, including to address impacts on the capacity of businesses to continue to operate. We helped businesses in partner countries to move quickly to produce new products and disseminate accurate health information to help with emergency responses. For example we supported Sri Lankan telecommunications provider Dialog to set up a public hotline to provide credible health advice to affected communities.

Australia’s aid for trade investments have improved developing countries’ participation in the global trading system, with flow-on benefits to their economic and social development. Our investments focused on the Pacific and Southeast Asia, and on addressing sectoral issues such as trade facilitation, trade finance and reforms to attract greater investment for sustainable development.

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

Market Development Facility - Fiji

The department is working in Fiji through • supporting medium and small our Market Development Facility. This enterprises through online business helps increase earnings for low-income coaching and a social media men and women by helping to identify campaign and address market constraints. It is

• helping arrange local food delivery

helping partner countries respond to the and logistics for agricultural

economic impacts of COVID-19 as well producers.

as other regional shocks such as Tropical Cyclone Harold. For example, in Fiji the These interventions also help reduce the facility is: risk of longer-term market destabilisation

and potential impacts to Australia’s

• working with businesses to facilitate economic interests in the region.

local production of hand sanitiser and face shields

Civil society Non-government organisations (NGOs) are vital development partners. They have close connections to local communities in Australia and overseas, and strong development expertise. Working with NGOs helps the department respond quickly to emerging issues.

We signed a new five-year agreement with the Australian Council for International Development, the peak body for international development NGOs. This will enhance dialogue and increase effectiveness and accountability through standard setting and organisational development.

Australia-NGO Cooperation Program

The department contributed $132 million† to the Australian NGO Cooperation Program (ANCP) during the year. NGOs matched this by a minimum 10 per cent (over $13 million). In 2019-20, 57 trusted NGOs worked with more than 2,000 local partners to implement 431 projects in 59 countries. An estimated 82 per cent of ANCP expenditure was in the Indo-Pacific.

ANCP rapidly adapted existing projects to COVID-19. Australian NGOs worked alongside local partners to:

• prevent transmission

• respond to social and economic impacts with an emphasis on the needs of women, children and people with disability

• deliver local-language hygiene messaging, soap and protective equipment to clinics

• ensure basic food security and livelihoods were sustained

• continue education for children during lockdown.

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Australian Volunteers Program

The Australian Volunteers Program supported 931 skilled Australians to volunteer in 600 partner organisations across 26 countries throughout the year. Volunteers provide long-term capacity building and strengthen Australia’s people-to-people links through relationships that support locally led community development. COVID-19 meant 470 volunteers had to return to Australia, but many remained in contact with their organisations; a testament to the enduring relationships that develop. The Australian Volunteers Program continued to support partner organisations with remote volunteering and small grants.

Australian Aid: Friendship Grants

We launched the second round of this three-year program to strengthen relationships between Australian community organisations and our neighbours across the Indo-Pacific. We received more than 200 applications for grants of $30,000 to $60,000 before COVID-19 meant the initiative was postponed.

Delivering an effective, efficient and transparent development program Our development program is underpinned by a comprehensive planning, management and reporting system which focuses on performance, evaluation and innovation. It is subject to regular oversight for financial and program accountability. The Minister for Foreign Affairs and the Minister for International Development and the Pacific launched our Partnerships for Recovery strategy in May. It includes a new performance system to monitor and report the context, annual results and the effectiveness of Australian efforts in addressing the challenges of COVID-19 and supporting progress towards the 2030 Sustainable Development Goals. We will draw on the performance system to capture lessons and communicate the results and impact of Australia’s development program including through the department’s annual report.

Performance measure How we rate our performance*

The development program is effective, efficient and On track transparent:

• at least 85 per cent of investments are assessed as satisfactory on both effectiveness and efficiency criteria in the Aid Quality Check process**, and

• all country and regional Aid Program Performance Reports published on the department’s website annually. Source: Corporate Plan 2019-20 p. 18, PBS program 1.2 p. 29 | Funding: PBS 2019-20 programs 1.2 and 1.3 * Our assessments are informed by Aid Quality Checks, independent evaluations, surveys and reporting by program partners, and the multilateral performance framework.

**The 2019-20 Corporate Plan noted that the target of 85 per cent was under internal review and may be updated in 2019-20. This was reviewed as part of developing the new development policy and performance framework, Partnerships for Recovery. There was no amendment to this target for 2019-20

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

Our performance Assessment of our development program includes independent checks and balances. This year the Australian National Audit Office completed an audit on Value for Money in Delivery of Overseas Development Assistance through Facility Arrangements. It found that:

• facility design and contractor procurement processes were well structured

• partnering with managing contractors was effective

• suitable frameworks were established for evaluating the performance of aid investments.

It recommended a broader consideration of costs during planning, improved value-for-money approval processes within facility structures, and better management of risks associated with supply chain management. The department accepted these recommendations.

We produce aid quality checks for all development program investments worth more than $3 million. This comprised 294 annual aid quality checks, 31 final aid quality checks and 15 humanitarian aid quality checks over the year. Overall effectiveness ratings for final aid quality checks were lower than for annual aid quality checks indicating that investment managers may be satisfied with the delivery of outputs during implementation, but find it more challenging to rate some investments as successful when comparing eventual outcomes to those planned in investment design frameworks. In 2019-20, 88 per cent of investments were assessed as satisfactory against both effectiveness and efficiency criteria in the aid quality check process.

We carefully design and implement development program investments, but sometimes these are not as successful as planned. If our monitoring and evaluation systems identify underperformance, remediation plans are put in place. If investments fail to meet expectations, they are cancelled. In the 2018-19 aid quality checks, 10 investments were identified as underperforming. In 2019-20, five of these had improved their performance, four were completed and one investment was again assessed as underperforming. Of the 340 investments which completed aid quality checks in 2019-20, 15 have been identified as underperforming. Ten of these are continuing with management actions identified to improve performance, four have been completed and the remaining investment which has been underperforming for the past two years has been cancelled. Seventy-seven per cent of our aid investments effectively addressed gender equality issues in their implementation.

We published all 25 Aid Program Performance Reports on our website. We also made available online information on our international development program, including detailed statistics, policies, plans, results and evaluations.

The department’s Office of Development Effectiveness (ODE) played a role in assessing our development program’s performance, evaluating its impact and supporting program areas to continue to improve aid effectiveness. ODE completed and published three strategic evaluations of Australia’s development assistance covering the past seven to 10 years. These addressed ending violence against women, strengthening health systems and building skills in the Indo-Pacific. Five ODE evaluations were deferred because of the focus on our response to COVID-19. The department also published 50 aid evaluations, up from 45 last year.

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Leading the Australian Government’s response to humanitarian crises Our region is particularly vulnerable to natural hazards, and climate change is exacerbating this trend. This year the department responded to humanitarian emergencies in our region quickly and effectively.

Performance measure How we rate our performance*

Timely and effective responses to humanitarian On track emergencies, including an enhanced Indo-Pacific ability to prepare for, respond to and recover from crises:

• Australia responds within 48 hours of a request from a country in the Indo-Pacific

• effective Australian Government response to humanitarian crises, displacement and conflict measured through end-of-program reviews of protracted crisis response packages and Strategic Partnership Frameworks, and

• Australian support builds the capacity of Pacific governments and communities to better prepare for, respond to and recover from climate change and disasters. Source: Corporate Plan 2019-20 p. 18 | Funding: PBS 2019-20 programs 1.2 and 1.3 *Our assessments are informed by the UNFPA Afghanistan 2019 project annual report, partner engagement and reporting, the annual DFAT Quality Reporting processes, AHP reporting and AUSMAT Measles Response reporting

Our performance The department provided more than $400 million to help communities affected by humanitarian crises and to build resilience to disasters. Our work ensured that Australia met its commitment to respond within 48 hours to requests for humanitarian assistance from a country in the Indo-Pacific. We rate our performance against this measure as ‘on track’.

Our Australia Assists program helped provide health care, food security, logistical preparedness and communications, with 31 specialists providing in-country and remote assistance in the Pacific and Southeast Asia.

Tropical Cyclone Harold

In early April Tropical Cyclone Harold the Red Cross, NGOs and governments swept through Solomon Islands, to provide immediate assistance to Vanuatu, Fiji and Tonga, leaving a trail of affected communities and to support destruction and claiming 31 lives. early recovery activities, including

restoring education and health services.

Australia released humanitarian relief supplies that had been pre-positioned The risk of COVID-19 transmission with local partners and assisted complicated relief work. We developed governments to conduct damage strict protocols on handling, packing and assessments. Following formal requests storing relief supplies. for assistance, eight Australian Defence

Australia is supporting repairs to schools

Force flights to Fiji and Vanuatu delivered and health facilities, and distributing

224 tonnes of blankets, lanterns, shelters, food crop seedlings and cuttings.

hygiene kits and other essential items. Our funding (over $17 million) enabled

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

Australia deployed an Australian Medical Assistance Team (AUSMAT) to support Samoa’s response to the worst measles outbreak in its history. The team worked alongside Samoan health personnel to provide urgent care to critically ill patients, mainly children. Australia also provided medical supplies, including an eight-bed intensive care field hospital, a 20-bed paediatric ward and emergency oxygen equipment. AUSMAT facilities treated more than 130 patients and helped local clinicians treat over 1,000 patients in Samoan hospitals. Australian specialists also helped the Ministry of Health manage the long-term needs of people hit by the crisis.

Pacific essential services and humanitarian corridor

Staff of the Australian High Commission in Suva—Program Manager Climate Change and Humanitarian Response Ken Cokanasiga and Program Manager Climate Change and Resilience Natasha Verma—inspect the consignment of relief supplies provided by Australia which arrived on a Royal Australian Air Force aircraft in Nadi earlier this year to support Fijian Government efforts post Tropical Cyclone Harold [DFAT]

As part of the COVID-19 response, the Office of the Pacific partnered with other Australian government agencies to establish an essential services and humanitarian corridor. The Corridor complements and supports the Pacific Islands Forum’s Pacific Humanitarian Pathway by connecting the Pathway to Australia, recognising we are an important transport hub for the Pacific island region. We provided $3 million to the World Food Programme for air transport and logistics services for the Pathway, enabling the delivery of humanitarian and critical medical supplies.

The Corridor ensured supplies and new rapid diagnostic tests could be delivered to

13 Pacific island countries and Timor-Leste. It also helped return home more than:

• 600 Australians

• 600 Pacific island and Timorese nationals

• 800 third country citizens.

The Corridor also ensured life-saving supplies reached Vanuatu and Fiji after Tropical Cyclone Harold. This work was done in a way that minimised the risk of COVID-19 transmission, and respected our partners’ efforts to protect their own borders, populations and economies from a potential outbreak.

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Pacific island countries face increasingly frequent and complex climate and disaster hazards, resulting in growing economic losses. In November the department published a Climate Change Action Strategy to outline our approach to responding to climate change in the development program. Its focus is on working directly with countries in our region, particularly in the Pacific.

Australia’s support for disaster preparedness is paying off. Faced with three cyclones and COVID-19, organisations in Fiji, Vanuatu, Solomon Islands and Tonga drew on networks supported through the Australian Humanitarian Partnership (AHP) program to:

• provide early warning

• move people to evacuation shelters

• distribute assistance to the most vulnerable.

The department rapidly scaled up support through AHP partners to help more than 1.5 million people across the Pacific and Timor-Leste.

Over 2.3 million people are estimated to be in need of humanitarian assistance in Bangladesh and Myanmar. In addition to our wide-reaching support in these countries, Australia provided $100.1 million for humanitarian assistance to support refugees, internally displaced people and affected communities. This funding delivered food assistance, health and sanitation, education, and protection services to women and girls who experienced violence. It also supported new COVID-19 quarantine and treatment facilities for Rohingya in Cox’s Bazar.

We extended our Syria Crisis Humanitarian and Resilience Package by almost $52 million to a total of $249 million since 2017 across Syria, Jordan and Lebanon. Our assistance contributed to primary health services for 7.6 million people and sexual and reproductive health services for 1.2 million. Together with partners we reoriented activities to prepare for and respond to COVID-19, including provision of water and sanitation infrastructure, medicines, ventilators and personal protective equipment.

Second Secretary at the Australian Embassy Beirut, Sarah Schmitt, and United Nations High Commissioner for Refugees (UNHCR) representative, Felix Eldridge, monitor the situation of Syrian refugees during a visit to an informal tent settlement in Bar Elias, Bekaa, Lebanon. Australia has provided support to Syrian refugees since the displacement crisis began, through partners such as UNHCR, the World Food Programme and Leb Relief [DFAT/Seema Chandra]

DELIVER AN EFFECTIVE AND RESPONSIVE DEVELOPMENT ASSISTANCE PROGRAM

Work to deliver our three-year $100 million Humanitarian and Stabilisation Package in Iraq continued. We provided humanitarian assistance to people liberated from Da’esh control, including:

• healthcare

• physical rehabilitation for people with disability

• critical infrastructure.

A 2020 independent review found our investment to be well designed, in Australia’s national interest and performing well.

The department continued to champion the Charter for Disability Inclusion in Humanitarian Action. In particular we integrated disability inclusion through our responses to the Iraq and Syria humanitarian crises.

Australia provided humanitarian and resilience support to countries in Africa. This included providing food and shelter to flood victims in South Sudan and helping poor far mers in Somalia increase their yields. We orientated part of these contributions towards the COVID-19 response in both countries.

Australia’s support to the United Nations Population Fund (UNFPA) in Afghanistan addresses the urgent health and protection needs of Afghan returnees, internally displaced and host communities. In 2019 this project reached approximately 246,000 beneficiaries through:

• mobile health teams in areas of high return and conflict displacement

• women-friendly and family-protection centres

• gender-specific youth service centres.

Australia provides over $100 million annually in core funding to humanitarian agencies to enable them to meet ongoing global humanitarian needs and to rapidly respond to new crises, such as COVID-19. As well as this flexible core funding, Australia was able to use long-standing humanitarian partnerships to rapidly direct $18 million to the UN’s humanitarian pandemic response in the Indo-Pacific through the World Food Programme, the United Nations High Commissioner for Refugees, UNICEF and UNFPA.

†Figure from Budget Estimates. Further details of Budget Estimates are at Appendix 4. Actuals are published on the departmental website in December in Australia’s Official Development Assistance: Statistical Summary, following collection of information from other government departments and delivery partners including detailed breakdowns of geographic flows of expenditure

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Figure 9 Aggregate development results 2019-20

1,694,497 Number of girls and boys vaccinated

2,292,310 Number of women and men with increased access to

basic sanitation

1,982,942 Number of women and men with increased access to

safe water

HEALTH

378,643 Number of additional births attended by a skilled birth attendant

835,055 Number of poor women and men who adopted innovative

agricultural and fisheries practices

USD169,641,228 Value of additional agricultural and fisheries production

AGRICULTURE, FISHERIES AND WATER

576,732 Number of additional girls and boys enrolled in school

149, 831 Number of teachers (women and men) trained in order to

improve learning outcomes

3,537 Workforce skills development: number of women and men

assisted to gain recognised post-secondary qualifications

EDUCATION

9,104 Number of management committees in which

women are equally represented

33,113 Number of women survivors of violence receiving services such

as counselling

GENDER EQUALITY AND EMPOWERING WOMEN AND GIRLS

7,791

Number of police and law and justice officials trained (women and men)

EFFECTIVE GOVERNANCE

INFRASTRUCTURE AND TRADE

2,672 Distance (km) of roads constructed, rehabilitated or

maintained

5,797

Number of women and men trained in trade policy and regulation

826,329 Number of poor women and men who increased their

access to financial services

$102,219,960 Value of exports facilitated, including new exports

998,416 Number of additional poor women and men able to access social transfers (such as cash

or in kind transfers including food)

1,136,728 Number of poor women and men with increased incomes

4,761,948 Number of vulnerable women, men, girls and boys provided with

life-saving assistance in conflict and crisis situations

BUILDING RESILIENCE: HUMANITARIAN, DISASTER RISK REDUCTION AND SOCIAL PROTECTION

ADVANCE GLOBAL COOPERATION

COVID-19 is a powerful reminder that Australia’s interests are best served through cooperation with others, underpinned by a robust and effective multilateral system and international law, including human rights.

This system complements our bilateral and regional partnerships in the Indo-Pacific and around the world. We work with diverse partners to strengthen ties, build influence and mitigate risk. These relationships are of special value in times of crisis.

Shaping international rules and norms The department leads Australia’s engagement in the multilateral system. We advocate for openness, transparency and upholding international law, and aim to ensure these institutions, rules and norms operate in ways that support Australia’s interests.

Performance measure How we rate our performance*

Australia’s diplomatic efforts and financial contributions help shape institutions, rules and forms of cooperation in line with our national interests.

On track

Source: Corporate Plan 2019-20 p. 19, PBS 2019-20 program 1.4 p. 32 | Funding: PBS 2019-20 programs 1.1, 1.2, 1.3 and 1.4 *Our assessments are informed by international resolutions and statements, multilateral assessments and audit, engagement with domestic and international stakeholders, international treaties and outcomes documents, diplomatic reporting, membership of multilateral bodies and implementation of reform processes

Our performance On balance we rate the department as ‘on track’ against this performance measure, but acknowledge the multilateral system is under considerable strain. Details of our performance are provided under the headings below.

Multilateral audit The department’s whole-of-government audit of Australia’s engagement with the United Nations and international standard-setting bodies examined more than 100 multilateral institutions, processes and forums. The audit affirmed multilateral institutions deliver outcomes vital to global prosperity and stability, and to Australia’s interests, but are under strain from shifts in global power, technological disruption and unprecedented global challenges.

Following the audit, we have implemented a strategy for multilateral engagement, which seeks to ensure global institutions are fit for purpose to address current challenges, accountable to member states, free from undue influence and focused appropriately on our Indo-Pacific region. We aim to support fundamental parts of the multilateral system, including the rules, norms, standards and values, which underpin stability, prosperity and our trade and economic interests. Consistent with this approach, Australia has continued to play an active role in influencing and shaping global institutions, including pursuing candidacies for leadership and board positions.

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Human rights We were active in human rights institutions in line with our national interests through our membership of the UN Human Rights Council (HRC) (2018-2020) and engagement in human rights discussions in the UN General Assembly and other forums.

In three HRC sessions over the year, we negotiated 103 resolutions (co-sponsoring 60), delivered 65 national statements, and joined 34 statements to advance country-specific and thematic human rights issues. These actions defended the universality of established human rights norms and in particular promoted the rights of women and girls, and Indigenous and LGBTI people. We advocated for freedom of expression, good governance, strong national human rights institutions and freedom of religion or belief.

We held countries to account on their human rights records, particularly those serving as fellow members of the HRC. This included action on human rights situations in Eritrea, the Philippines and Xinjiang, China. We also led a joint HRC statement on human rights violations in Saudi Arabia, which called for truth and accountability in relation to the killing of Jamal Khashoggi.

As part of our commitment to amplify the voices of the Pacific during our HRC membership, Australia coordinated two Pacific joint statements on issues of importance to our region: in July on youth employment and education, and in June on women in multilateralism.

We supported a strong role for multilateral human rights institutions in responding to COVID-19. We delivered and joined statements at the HRC and the UN General Assembly calling for COVID-19 emergency measures to comply with international human rights law, highlighting concerns over backsliding on human rights during the pandemic.

Gender equality Australia considers gender equality and human rights as important for security, stability and prosperity in the Indo-Pacific region.

During COVID-19 the Foreign Minister and Minister for Women has led discussions in our region, including with Pacific Women Leaders, which recognised that meaningful participation of women in responses to the crisis will be important to our longer-term economic recovery efforts. Interactions across the region have highlighted the disproportionate impact of the pandemic on women and girls and have informed our activities under the development program.

In the year which marks the 25th anniversary of the Beijing Action Plan on Women, Australia has continued our defence of gender equality and international gender rights and norms, including sexual reproductive health and rights, in our final year on the HRC, in the G20, APEC, MIKTA (Mexico, Indonesia, the Republic of Korea, Turkey and Australia), the Commonwealth and beyond. We supported the Office for Women in promoting Australia’s candidacy for the Committee on the Elimination of Discrimination Against Women, the first such campaign in 30 years. If successful, it will provide another opportunity for Australian leadership on gender equality issues globally.

We continued Australia’s strong advocacy of the Women, Peace and Security (WPS) Agenda introduced by UN Security Council Resolution (UNSC) 1325, this year advocating for women’s roles in conflict resolution and peacekeeping at the UNSC and HRC. As part of our COVID-19 response, the department contributed additional funding to UN Women’s two key WPS funds with grass-roots partners: the WPS Global Facility and the Women’s Peace and Humanitarian Fund. These delivered projects in humanitarian contexts through:

ADVANCE GLOBAL COOPERATION

• Elsie Initiative funding, to pr omote women’s meaningful participation in peacebuilding and peacekeeping (both at risk during the pandemic)

• increased support to women and girl survivors of sexual and gender-based violence, the demand for which has increased during COVID-19.

Climate change As chair of the Umbrella Group of countries—one of four major groups in global climate change negotiations that includes the United States, Canada, Japan, Russia and others—Australia played a leading role in negotiations on Paris Agreement implementation. Our officials:

• served on technical bodies under the United Nations Framework Convention on Climate Change (UNFCCC), including the Standing Committee on Finance and the Warsaw International Mechanism on Loss and Damage

• contributed technical expertise

• supported policy development.

At the 2019 Madrid COP25 Climate Conference, the department worked with countries to deliver an enhanced, five-year Gender Action Plan for 2020-2024. This will suppor t women’s participation in the UNFCCC process and help countries integrate gender equality into climate change action.

Australia has worked with Pacific partners to build recognition of the connection between oceans and climate change, and we welcome the upcoming dialogue at COP26 to highlight and profile the importance of climate change mitigation and adaptation in relation to the ocean. We engaged internationally and regionally to build resilience of ocean ecosystems to climate change and enhance international efforts towards a sustainable ocean economy.

COVID-19 had a direct impact on how we work, limiting international meetings and deferring the 2020 COP26 climate conference to 2021. This has delayed agreement on rules for carbon markets and the transparency framework under the Paris Agreement. Australia is working with partners to continue progress through virtual forums.

Strengthening international law We led Australia’s engagement in reforming the International Criminal Court and supporting its core mandate as a court of last resort. We participated in initiatives to strengthen compliance with international humanitarian law, including the 33rd Conference of the International Committee of the Red Cross.

We worked within international forums and with international partners to share sanctions policy and regulatory best practice. We also supported countries in the region to strengthen their implementation of sanctions obligations.

Australia partnered with Thailand in proposing the East Asia Summit Leaders’ Statement on Cooperation to Combat Transnational Crime in November. Our leadership on this issue recognises the threat from trans-boundary crime to regional stability.

We led Australia’s international engagement in the Antarctic Treaty system, which celebrated the treaty’s 60th anniversary in December. The department and the Australian Antarctic Division of the then Department of Environment and Energy inspected foreign bases throughout East Antarctica—the most extensive Australian inspection program to date—finding a high level of compliance with the Antarctic Treaty system.

Following the conclusion of the conciliation between Australia and Timor-Leste, the Maritime Boundaries Treaty entered into force in August. The treaty establishes permanent maritime boundaries between our

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............................................................................................................................

two countries and a stable legal framework for the development of gas and oil resources in the Timor Sea. It upholds Australia’s commitment to international rules and the peaceful resolution of disputes, and reflects our full commitment to the independence, sovereignty and economic sustainability of Timor-Leste.

We promoted the UN Convention on the Law of the Sea and maritime cooperation with regional partners, co-hosting with Timor-Leste and Malaysia an ASEAN Regional Forum Workshop. This focused on the Timor-Leste and Australia Conciliation, providing an opportunity to engage in the detail and consider different models of dispute resolution for the region, as well as highlighting the strong bilateral relationship between Australia and Timor-Leste.

Australia remains committed to pursuing justice for all 298 victims of MH17, including the 38 people who called Australia home. We supported the commencement of the Dutch prosecution of four suspects in the downing. Prosecuting these crimes in an open and independent court sends a powerful message that perpetrators will face justice, and reinforces the rule of law and international rules-based order. Australia contributed $9.1 million to the Dutch Government to help support the internationalisation of the trials. Our MH17 Family Support Package also supported next of kin to travel to the Netherlands to observe and participate in the prosecution. We continue, together with the Netherlands, to hold talks with Russia regarding its role in the downing of the aircraft.

Working with the UN and the Commonwealth We protected and shaped international rules and standards that reflect our values and interests through pragmatic engagement and consensus building in the UN General Assembly and its subsidiary organs. We drove priority issues such as human rights, gender equality, disability inclusion and system reform. Our successful advocacy for greater UN coordination and resourcing in the Pacific helped Pacific countries prepare and respond to COVID-19.

The impact of COVID-19 in New York resulted in all UN meetings being held virtually. We adapted our working methods to continue remote participation in UN events, briefings, negotiations and elections.

Australia worked closely with the UN and international partners to promote security and stability in the immediate region and globally, including through our contribution to UN peacekeeping missions and in response to COVID-19. Following a cross-government review of Australia’s contributions to peace operations, Australia committed to preserving our position as a peacekeeping partner of choice for Indo-Pacific countries, and to maintaining our leadership role in shaping the peace and security agenda.

We worked to strengthen the effectiveness of UN institutions, holding them to account through our positions on governing boards and key donor groups. We influenced reform measures on governance, transparency and accountability, and ensured appropriate rigour was applied to UN budgets and activities. Australia is effectively promoting transparency and evidence-based decision making through our seat on the World Heritage Committee (2017-2021).

The department supported successful campaigns for Australia to be re-elected to the governing councils of the International Maritime Organization Council and the International Civil Aviation Organization Council. These UN agencies regulate international cooperation on maritime transport and civil aviation, which are vital for Australia’s prosperity.

Australia is an active member of the Commonwealth and supporter of the organisation’s values of democracy, rule of law, development and peace. As Vice-Chair of the Commonwealth Ministerial Action Group, Australia welcomed Maldives back to the Commonwealth, which brought the membership to 54 countries. The Commonwealth Heads of Government Meeting scheduled for June 2020 in Rwanda was put on hold due to COVID-19.

ADVANCE GLOBAL COOPERATION

World Health Organization The department played a key role in securing and shaping a mandate for an independent evaluation into the COVID-19 response through a resolution of the World Health Assembly. Active engagement with partner countries by the Prime Minister, Foreign Minister and our diplomatic network helped secure 145 co-sponsors of the resolution.

The evaluation will look at lessons learnt from the COVID-19 response so our global health architecture is well equipped to respond to future health crises—an example of how the department is helping shape institutions to advance Australia’s national interests.

The department partnered with the World Health Organization (WHO) to promote health security and stability in our region. WHO’s operational efforts in the Pacific and Southeast Asia prior to and during the pandemic have supported vulnerable countries to prepare and respond to multiple health emergencies. In response to COVID-19 in our region, Australian funding supported WHO to:

• respond to more than 250 requests for assistance

• despatch more than 368,109 individual items of personal protective equipment to 16 countries and territories

• deploy 41 technical staff to 17 Pacific island countries

• coordinate procurement and distribution of diagnostic tests.

WHO also played a critical role in supporting countries in our region to maintain safe, quality essential health services during the pandemic, such as immunisation, maternal and child health, and chronic disease treatment.

Gavi, the Vaccine Alliance

Australia’s partnership with Gavi, the Through our partnership with Gavi Vaccine Alliance, is central to our impressive results have been achieved COVID-19 response in the region. Gavi, towards health security in the region. with its cutting-edge private-public Sixteen countries have been supported model, hosts the COVAX Advance with more than USD3 billion in vaccine Market Commitment, the centrepiece of and health system support since multilateral efforts to ensure developing 2000, averting more than 3.2 million countries do not miss out on a safe and deaths from vaccine-preventable effective COVID-19 vaccine. In June 2020 diseases. Papua New Guinea will see an the Prime Minister announced $300 additional 400,000 children immunised million core funding for Gavi over the over the next three years. In January next period (2021-2025), setting a strong Indonesia announced it will introduce foundation for future investments in a pneumococcal vaccine with Gavi, vaccine access for our region. Our protecting four million children a year long-term commitment and role as Board against pneumonia—currently one of the Vice Chair helped secure an expansion biggest killers of Indonesian children. of eligibility for Pacific island countries to vaccines, including a potential COVID-19 vaccine, supported by Gavi.

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Promoting our interests around the world We continued to strengthen relationships in Europe, the Middle East, Africa, Latin America and the Caribbean to advance our Indo-Pacific and global interests.

Performance measure How we rate our performance*

Our relationships with Europe, the Middle East, Latin On track America and Africa advance Australia’s interests. Source: Corporate Plan 2019-20 p. 19 | Funding: PBS 2019-20 programs 1.1, 1.2, 1.3, 1.4 and 1.6 *Our assessments are informed by diplomatic reporting, meeting outcomes, agreements and treaties

Our performance We rate the department’s performance as ‘on track’ against this performance measure. COVID-19 disrupted our work, but it also provided opportunities to strengthen our partnerships in unprecedented ways.

We advanced Australia’s relationships in Europe, underpinned by significant engagement on strategic challenges and strong common interests, including in negotiating an ambitious free trade agreement with the European Union. We continued to build on our deep relationship with the United Kingdom as it moves toward Brexit and launched work on a bilateral free trade agreement. Given the growing alignment of strategic interests, we advanced engagement with key European partners and the United Kingdom in the Indo-Pacific and on supporting the rules-based international order.

We also worked closely to respond to COVID-19, to promote respect for international law and human rights, to share views about strategic developments in the Indo-Pacific and to address disinformation. We supported many high-level engagements with European countries, including the Prime Minister’s participation in Austria’s Smart COVID-19 Management Leaders’ Group and the Foreign Minister co-hosting with Spain a meeting of female foreign ministers to address the pandemic’s impacts on women and girls.

We ensured early contact across government with the new European Commission and supported high-level visits from member countries. We hosted the inaugural Trade and Investment Dialogue with France, at which trade ministers agreed to cooperate on a range of issues, including infrastructure and energy.

We also facilitated a wide range of other exchanges between ministers during the period. We hosted visits by the UK Foreign and International Trade Secretaries and put in place arrangements, including new bilateral treaties, to help Australian businesses to continue operating after Brexit.

Australia introduced new sanctions to counter Russia’s occupation of Crimea and Sevastopol, renewed existing designations, and supported Ukraine and Georgia’s sovereignty and territorial integrity in multilateral forums. We continued our counter-terrorism cooperation with Turkey, a critical partner for Australia’s efforts to mitigate the threat posed by Islamist extremists and foreign terrorist fighters.

We continued to advance Australia’s interests in the Middle East, where ongoing volatility raised risks for regional and international security. We provided advice to government on policy responses, worked with the United States and other partners towards de-escalation, and advocated for freedom of navigation through the International Maritime Security Construct. We helped enhance our trade, investment and commercial links with the Gulf States, including improved market access for Australia’s high-quality agricultural products. We also worked with like-minded countries to urge restraint in northeast Syria.

Under Australia’s contribution to the Global Coalition to Defeat Da’esh, we led political engagement and shaping of coalition strategies. We supported Australia’s ongoing military contributions to the Middle East, including Australian Defence Force training for Iraqi security forces.

ADVANCE GLOBAL COOPERATION

We supported the Governor-General’s visit to Iraq in December for a head of state engagement with Iraq’s President, Dr Barham Salih. This visit reinforced Australia’s commitment to Iraq’s stability and recovery. With our assistance, the Governor-General also visited Israel to commemorate the 75th anniversary of the liberation of the Auschwitz-Birkenau Concentration Camp. We supported a reciprocal visit to Australia by the Israeli President, further deepening our bilateral ties. Through the Council for Australian-Arab Relations, we built vital people-to-people links.

In December we opened a new chancery compound in Abuja, Nigeria, reflecting Australia’s commitment to relations with Africa’s most populous country and largest economy. We joined Nigeria in senior officials’ consultations in February, the first in seven years. We collaborated with Australian mining companies to address challenges in operating in West Africa, including providing advice and support during COVID-19.

We supported study tours for journalism students between Australia and Morocco, enabling participants to produce more informed cross-cultural reporting on the complexities of Australia-Arab relations.

We continued strong activity to improve human rights outcomes, both directly and through the UN Human Rights Council. Ending the death penalty, preventing sexual and gender-based violence and enhancing women’s, journalists’ and LGBTI rights were consistent elements of our diplomatic representations.

We collaborated with African members of the Indian Ocean Rim Association (IORA), such as South Africa and Mauritius, to advance discussions on the sustainable use of ocean resources and trade and investment facilitation, for example by hosting in Mauritius an IORA meeting on Blue Carbon financing.

In Latin America and the Caribbean, we deepened our trade, investment, people-to-people and education links. Brazil and Colombia became top five source countries for international students. The Peru-Australia Free Trade Agreement (PAFTA) entered into force, removing barriers for some key service industries and providing new access for our sugar, dairy and grains farmers. A new Bilateral Investment Agreement with Uruguay will protect and promote investment opportunities. We worked with the region’s Cairns Group members in the WTO to address trade-distorting agricultural subsidies. Australia, Brazil and Guatemala cooperated closely on our respective WTO challenges to India’s sugar subsidies. With Chile as APEC host, we helped deliver strong outcomes in that forum, including on marine waste, illegal fishing and women’s economic engagement. With like-minded countries in the HRC and other international forums, we worked for the return of democracy and rule of law in Venezuela.

Soft power and building influence Soft power is the ability to influence the behaviour or thinking of others across the globe through the power of ideas and attraction. By leveraging soft power strengths, we can advance Australia’s global reputation and prosperity.

Performance measure How we rate our performance*

Soft power initiatives advance Australia’s interests and On track influence. Source: Corporate Plan 2019-20 p. 20, PBS 2019-20 program 1.6 p. 34 | Funding: PBS 2019-20 programs 1.1 and 1.6 *Our assessments are informed by a global alumni survey, sector and community engagement (sports advisory council), program reach through online delivery and growth

in social media followers

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t t

Our performance We rate our performance as ‘on track’ against this performance measure.

During the Australian bushfires our diplomatic network mobilised to amplify and promote Australia’s reputation and economy, including showcasing our world-class international tourism, education and exports industries. We repurposed numerous events, including G’day USA and Australia Day public diplomacy events, to project key messages and promote affected sectors.

In response to COVID-19 we dramatically increased social media use to provide additional information and support to Australians overseas and highlight the department’s unprecedented crisis response. At its peak in March, our global social media content was viewed more than 322 million times and elicited more than 8.5 million public interactions. Since the onset of COVID-19 in January, the department’s social media network published an average of 7,809 posts per month—a 49 per cent increase on the same period in 2019. During this same period, our social media following increased by 17 per cent (more than 581,000 followers), bringing our total social media audience to 4.04 million followers at 30 June.

Figure 10 Social media in response to COVID-19

Engagement Posts Audience

26.4m* 47k* 4m

229% 49%

1,078 HOM/ HOP videos posted**

with

3.7m views

*from 01/01/2020 to 30/06/2020; percentage increases compared to same six-month period in 2019 **by our heads of mission and heads of post from 25/03/2020 to 30/06/2020

We promoted Australian excellence, creativity and values with coordinated communication and public diplomacy delivered across our global network. We took our highly successful Australia now program to the 10 countries of ASEAN. Australia now ASEAN 2019 enabled approximately 350 Australians to demonstrate their excellence in technology, design, sport, film and performing arts, and start-up skills at more than 250 individual events. COVID-19 disrupted activities in 2020, but we continued planning for online and future events.

ADVANCE GLOBAL COOPERATION

The department also purchased Australian products, particularly from bushfire-affected areas, to support Australia now.

We marked the UNESCO 2019 International Year of Indigenous Languages by supporting around 20 Indigenous performers, academics and others working in Indigenous languages to participate in overseas events. We also brought the Soul Harvest Gospel Choir from Vanuatu to perform in Nakanamanga language alongside the Central Australian Aboriginal Women’s Choir at the 2019 Desert Song Festival in Alice Springs.

During a visit supported by our consulate-general in Noumea, Indigenous Australian rapper and dancer, Baker Boy, conducts one of a series of culturally and linguistically diverse musical workshops with children across New Caledonia in celebration of the International Year of Indigenous Languages [DFAT/Australian Consulate-General in Noumea]

We strengthened people-to-people links with the Pacific through the Australia Awards Women’s Leadership Initiative training and mentoring programs. Moving online in response to COVID-19 enabled us to enhance support and expand the original cohort of 67 Pacific women scholars to include an additional 91 Pacific scholars through the online LeadershipConnect 2020 program.

A survey of 6,300 Australia Awards alumni (1996-2016) found 96 per cent used their Australian studies to improve professional outcomes, and their views of Australia were more positive as a result of their scholarship experience. Initiatives engaging our global alumni of approximately three million strengthened Australia’s global connections and influence by bolstering business and people-to-people links. These initiatives showcased the positive experiences of students and Australia’s world-class education services.

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We used Australia’s strengths as a sporting nation to connect with people and communities around the world through our international sports exchange programs, PacificAus Sports (2019-2023) and the Australian Sports Partnerships Program (2018-2028). We:

• suppor

ted regional sports with a focus on gender equality and community cohesion

• o

ffered pathways for Pacific athletes to play and train in Australia

• suppor

ted the establishment of the government’s Sports Diplomacy Advisory Council

• played an active r

ole in Australia’s successful campaign to co-host the FIFA Women’s World Cup 2023 with New Zealand.

We enhanced public and official understanding of Australian foreign and trade policy through the department’s Documents on Australian Foreign Policy (DAFP) series. We published DAFP: Australia and the World, 1920-1930, by Professor James Cotton, and a monograph by Dr Bob Bowker (ANU): Australia, Menzies and Suez. We also supported the Australian Institute for International Affairs’ publication of India, the United States, Australia and the Difficult Birth of Bangladesh, by Ric Smith AO PSM.

Protocol services for the diplomatic corps Our partners from around the world are represented in Australia by the diplomatic and consular corps. Providing them with immunities, privileges, security and courtesies under the Vienna Conventions on Diplomatic and Consular Relations is essential to good relations with their countries and ensuring reciprocal treatment of Australian officials overseas.

Performance measure How we rate our performance*

The diplomatic and consular corps posted or accredited to Australia are satisfied with the delivery of protocol services. Achieved

Source: Corporate Plan 2019-20 p. 20, PBS 2019-20 program 1.1 p. 28 | Funding: PBS 2019-20 program 1.1 *Our assessments are informed by the results of a survey of the diplomatic corps and feedback

Our performance The department worked closely with foreign diplomatic and consular missions during the COVID-19 pandemic. We facilitated:

• outbound r

epatriation flights

• transits o

f foreign nationals through Australian airports to enable their return

• complex visa issues

• movement to and fr

om exit points for foreign officials during border closures.

Our r

esponsiveness and cooperation with the diplomatic corps enabled Australia to leverage support overseas for our own consular efforts. We rate our performance against this measure as ‘achieved’.

In its second annual survey to assess our performance, the department received responses from 93 of the 108 diplomatic missions in Canberra.

Results showed 98 per cent of respondents were

satisfied or very satisfied that protocol services supported their mission’s ability to perform their functions.

Responses on the quality and timeliness of information provided to the corps were overwhelmingly positive, with our intensive communication campaigns during the bushfire and COVID-19 crises attracting praise. We used a WhatsApp group comprising foreign heads of mission in Australia to get messages to the corps quickly during fast-moving situations.

Helping foreign citizens in Australia get home

As well as assisting Australians at home and overseas, we supported repatriation efforts by the diplomatic and consular corps in Australia, when travel restrictions and visa issues complicated their nationals’ ability to return during COVID-19. This involved intensive liaison and negotiation with Australian federal and state authorities and our overseas network to enable visitors and temporary entrants to reach exit points and depart. A series of urgent compassionate cases required careful and prompt management.

Among the foreign nationals we assisted were over 20,000 foreign passengers and crew caught on 23 cruise ships in Australian waters at the outbreak of the pandemic. This complex operation was undertaken against fast-moving

developments and different requirements in each jurisdiction, including for crew members who had contracted COVID-19. Several foreign crew sadly lost their lives while in Australia, but the overwhelming majority made their way safely home on special flights or by commercial means supported by the department.

We also worked across government to enable thousands of international travellers to transit Australian airports from New Zealand and the Pacific.

Throughout the pandemic, we communicated regularly with foreign government representatives in Australia to alert them to new developments and arrangements affecting their consular work.

Figure 11 Satisfaction of diplomatic missions with protocol services

97 %Diplomatic visas 97 % Identity cards

92 %Airport facilitations 98 %

Information in the Protocol Guidelines

98%Advice on practical matters 100 %

Chief of Protocol’s regular updates

90 %Protocol Branch responsiveness 98 % Assistance with repatriations,

transits and consular work during COVID-19 = satisfied or very satisfied

ADVANCE GLOBAL COOPERATION

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......

{·~ .. ··· ... . . . . . . . . . . . ........ ··

SUPPORT AUSTRALIANS OVERSEAS As the year unfolded, the department reprioritised resources from ‘business as usual’ to prolonged crisis support for Australians at home and overseas in response to the bushfires and COVID-19. We also worked with Australian Public Service colleagues in other agencies, including Services Australia, to help Australians directly affected by the pandemic.

Consular COVID-19 has had a profound impact on Australians in every part of the world, with unprecedented demand for consular services and assistance. Against fast-moving and unpredictable developments, staff in Canberra and across the overseas network worked 24/7 to assist those most in need. We supported over 26,600 Australians to return in complex and unpredictable circumstances, including in locations heavily impacted by the pandemic. We provided fast, comprehensive and accurate information to millions of Australians overseas enabling over 350,000 to return to Australia without direct assistance.

But COVID-19 was not our only consular challenge. Before and during the pandemic, we managed a demanding load of work not related to COVID-19. We maintained a high standard of consular service to Australians in need.

Performance measure How we rate our performance*

A responsive consular service through our 24/7 global On track network, focusing on Australians most in need. Source: Corporate Plan 2019-20 p. 22, PBS 2019-20 program 2.1 p. 39 | Funding: PBS 2019-20 program 2.1 *Our assessment is based on our analysis of our consular case management database, consular mailboxes and other systems used to manage and track the provision of

consular assistance

Our performance In the course of the year, and in addition to the pandemic response, the department managed an average of more than 1,200 ongoing consular cases at any one time. This included high-profile, complex and resource-intensive cases, such as death penalty and kidnapping cases. We rate our performance against this measure as ‘on track’.

We coordinated the inter-agency response to three criminal kidnap cases. We also managed the release and return of two Australians from detention in Iran and of an Australian held hostage in Afghanistan. These cases demonstrate the value and importance of discreet and quiet diplomatic efforts in resolving sensitive consular cases.

On a business as usual footing, before COVID-19 the Consular Emergency Centre responded to over 35,000 public phone enquiries.

In January, as parts of Australia were still affected by the bushfires, the COVID-19 outbreak in Wuhan, China took hold. The virus created a complex situation for Australians and permanent residents in Hubei province. On 29 January the government decided to conduct an assisted departure operation on public health grounds of Australians from Wuhan, and this soon expanded to include Australians on the Diamond Princess cruise ship in Yokohama, Japan. Combined, we helped over 700 Australians return.

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Table 1 Consular services provided to Australians

2016-17 2017-18 2018-19 2019-20

Australian resident departures(1) 10,756,890 10,759,300 11,231,700 8,048,092

Cases of Australians hospitalised given general welfare and guidance 1,701 1,585 1,506 1,555

Cases of Australians evacuated to another location for medical purposes 14 7 10 5

Cases of next of kin of Australians who died overseas given guidance and assistance 1,653 1,671 1,695 1,546

Cases of Australians having difficulty arranging their own return to Australia given guidance and assistance 52 44 23 297

Number of Australians who have been assisted in a crisis, including to return to Australia 2,546 2,510 4,957 30,078(2)

Cases of Australians arrested overseas 1,641 1,540 1,572 1,443

Cases of Australians in prison 370 386 371 386(3)

Cases of Australians given general welfare and guidance 4,477 4,137 3,573 5,803

(4)

Total number of cases involving Australians in difficulty who received consular assistance 12,454 11,880 13,707* 41,113

Notarial acts 219,463 199,448 201,696* 175,033(5)

Total assistance - total number of cases of Australians provided with consular services 231,917 211,328 215,403* 216,146

Australians in financial difficulty who were lent public funds 211 180 149 519

*Corrections to 2018-19 report (see page 237 for further information)

1. Statistics for 2016-17 draw from ABS data. Statistics for 2017-18, 2018-19 and 2019-20 draw from Home Affairs data. All figures include permanent long-term and short-term departures of Australian citizens and permanent residents

2. In previous years this category reported enquiries about Australians overseas who could not be contacted by their next of kin. Under the extraordinary circumstances of COVID-19, in 2019-20 this data also captures the number of Australians who received crisis assistance during the period, including to return to Australia. This figure comprises all crisis-related cases, including those related to the Whakaari/White Island volcano eruption and over 26,600 Australians who were impacted by the pandemic and received support to come home

3. This figure shows the total number of cases of Australians in prison during the year

4. Welfare and guidance figure includes the following sub-categories: general (four), welfare and other serious matters (5,085), theft (160), assaults (278) and child parental responsibility (276)

5. Figures include notarial services performed by overseas posts, and services in Canberra and at state and territory offices in Australia

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...........................................................................................................................

The department led this complex operation. In China and from Australia, we worked closely with government agencies, Qantas and international partners to help hundreds of Australians and permanent residents return from Wuhan. The first flight landed on 3 February and the second on 9 February. We deployed six officers from Beijing and Shanghai and four Crisis Response Team members to Wuhan to assist Australians and support the assisted departures.

In a short period following this operation, we scaled up our response to what would become the largest and most complex consular challenge in our history.

High Commissioner to South Africa Gita Kamath (centre) with Australian High Commission staff at the assembly point in Pretoria for Australians departing South Africa on Australian Government-facilitated commercial flights [DFAT/Australian High Commission in Pretoria]

Deputy Head of Mission in Lima Brendan Hodgson and Second Secretary Christina Yiannakis discuss health checks with health care professionals for Australian passengers preparing to board a Qantas flight from Lima during Peru’s COVID-19 State of Emergency [DFAT/Australian Embassy in Lima]

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The department’s consular response to COVID-19

The declaration of a global pandemic in • organise sweeper flights and March resulted in severe disruptions to ground transport options to transfer international travel, including a lack of passengers to international airports commercial flights worldwide. Significant (for example, in the Philippines) numbers of Australians across the and to regional flight hubs in South world sought to return. Harnessing our America and the Middle East consular capability and global reach, we

• secure seats for Australians on:

shifted focus to help sick Australians and those stranded overseas. ◦ flights to Australia organised by

other governments to repatriate

On 9 March the department advised

their nationals

Australians to reconsider taking an overseas cruise at that time. On 13 March ◦ cargo flights the government advised all Australians ◦ medivac flights

to reconsider the need to travel overseas. On 17 March the government advised ◦ RAAF flights returning from Australians overseas who wanted to delivering humanitarian supplies return to do so as soon as possible by

• respond to more than 75,000 phone

commercial means. On 18 March the calls through our emergency and

government raised the travel advice for consular call units.

anywhere overseas to ‘Do Not Travel’.

From 13 March to 30 June, over 350,000 We provided direct consular assistance Australians returned safely, including to more than 2,600 Australians overseas over 26,600 who were supported who experienced welfare or other issues to return via a range of facilitated as a result of COVID-19 measures. This commercial flights. included 94 Australians who tested

positive to COVID-19 and 305 Australians

Our COVID-19 consular response was who were quarantined in a hospital, hotel

multi-faceted and underpinned by our or at home, based on local requirements.

network of embassies, high commissions, Sadly, 10 Australians who tested positive

consulates, honorary consuls and overseas died as a result of COVID-19.

representative offices. It involved officials The department provided financial

at all levels, up to and including the assistance through the Travellers’

Foreign Minister. Our staff drew on their Emergency Loan scheme to 519

deep understanding of local operating Australians in difficulty overseas (383 of

environments and strong relationships to: these as a result of COVID-19), and kept

• support over 26,600 Australians to Australians informed of developments return from across the globe during the crisis. Smartraveller provided real-time information relevant to their

• negotiate safe passage for more than locations, covering travel restrictions,

6,500 Australians to disembark 51 available flights to Australia and advice

cruise ships, as well as helping more on sheltering in place.

than 230 Australian crew on these ships to return

• assist with more than 315 flights from more than 90 countries to help Australians return, including through the direct facilitation of 63 non-scheduled commercial flights

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Informing Australian travellers

Performance measure How we rate our performance*

Australians have information to prepare for safe travel overseas and are empowered to help themselves:

• 100 per cent o

f Travel Advisories reviewed bi-annually for posts in a volatile risk environment and/or where there are high Australian interests, and

• 100 per cent o

f Travel Advisories reviewed annually for all other posts.

Achieved

Source: Corporate Plan 2019-20 p. 22, PBS 2019-20 program 2.1 p. 39 | Funding: PBS 2019-20 program 2.1 *Our assessment is based on in-built system reporting tools, analysis of Smartraveller data and communications with subscribers

Our per

formance

Smartraveller promotes safe travel behaviour and empowers Australians to help themselves overseas. The Smartraveller website provides travel advice and information about our consular services to help Australians make informed decisions about their travel and avoid problems while away. Smartraveller also provides clear public messaging during a crisis.

Before and during the pandemic, we used Smartraveller, industry partnerships and public outreach to ensure Australians living or travelling overseas had access to accurate, up-to-date information. We assess our performance against this measure as ‘achieved’.

1,949 Published updates to travel advice for 177 destinations

14m+

63m+

Subscription emails sent

115,000+ Critical alerts via SMS

5x

Increase in subscribers

2,200+ Facebook posts

2,400+ Tweets

13,500 Direct message responses

Advice level for all destinations - a first in Smartraveller history Level 4 - Do Not Travel

website page views, including 26m unique page views

12,980 Email responses

Figure 12 Smartraveller supporting the COVID-19 response, 21 January-30 June*

*The first COVID-19 update was posted on 21 January

SUPPORT AUSTRALIANS OVERSEAS

We launched our upgraded Smartraveller website on 21 November. It is simpler, easy to navigate, accessible and user-friendly. New and upgraded features include an enhanced subscription service for travel updates, critical alerts by SMS, and news. It also includes improved crisis communication functionality with crisis and alert bars.

We issued 2,108 updates to travel advisories for 177 destinations, and published numerous news bulletins and social media posts on events. We reviewed 100 per cent of travel advisories at least twice. We updated all travel advisories as part of the Smartraveller website redevelopment project and also updated them all at least once—and many on multiple occasions—with COVID-19 related information.

Our new Smartraveller ‘check your travel smarts’ campaign highlighted the importance of travel planning and preparation, as well as taking personal responsibility and a self-reliant approach to travel. Our multi-channel strategy ran across television, online video, search, digital and social media advertising, and included in-language material to target culturally and linguistically diverse communities. We also partnered with Red Frogs Australia and the Nicole Fitzsimons Foundation to promote safe travel messages to young people. This included publishing an overseas survival guide for school leavers and delivering travel safety presentations to schools across Australia.

The department maintained strong relationships with the travel, insurance and tourism industries. These networks proved valuable during COVID-19 as we worked with industry to provide information and assistance to Australians in need.

We further strengthened our public outreach by publishing the 2018-19 Consular State of Play report—a snapshot of the number and types of consular services provided to Australians overseas. This helps the public and the media to better understand our work and its limits. We responded to 1,972 consular-related media enquiries—77 per cent of all media enquiries received by the department.

Figure 13 Smartraveller website use

84m

1

918,543

Smartraveller website hits & 35 million unique page views

Indonesia

up 129%*

1 in 5 People visited the site more than once

193,940 Subscribers to new subscription service

258,656 Facebook followers up 41%*

667,449 Japan up 483%*

585,973 Italy up 617%*

463,106 Thailand up 167%*

429,923 Singapore up 473%*

32,758 Twitter followers up 28%*

2 3 4 5

Smartraveller’s most visited country pages**

*from 2018-19 **measuring unique page views

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Responding to crises overseas The department leads Australia’s whole-of-government response to overseas crises. Our Global Watch Office provides real time information to help decision-making and initial crisis response.

Performance measure How we rate our performance*

The department is prepared to respond to overseas crises:

• 100 per cent of crisis action plans reviewed and exercised annually for countries of resident accreditation.

On track

Source: Corporate Plan 2019-20 p. 22, PBS 2019-20 program 2.1 p. 40 | Funding: PBS 2019-20 program 2.1 The PBS on p. 40 incorrectly referred to reviewing and exercising Travel Advisories. The correct performance measure, as set out above, is to review and exercise crisis action plans *Our assessment is based on lessons learned from our international responses, exercises and training programs, case studies, internal and external feedback. It is also informed by analysis of data in our registration and IT systems used during COVID-19 to track flights, cruise ships and Australians registered overseas

On track

Performance measure How we rate our performance*

Effective coordination of whole-of-government responses to crises overseas. Source and Funding: PBS 2019-20 program 2.1 p. 39 *Our assessment is based on lessons learnt from our international responses, case studies, internal and external feedback

Our performance In addition to COVID-19, the department led whole-of-government responses to a number of overseas incidents and crises during the year, including:

• civil unrest in Hong Kong

• a measles outbreak in Samoa

• the Whakaari/White Island volcano eruption in New Zealand

• Tropical Cyclone Harold in the Pacific.

We deployed members of our highly trained and rapidly deployable Crisis Response Team and activated the department’s Emergency Call Unit. We also supported the response to the bushfires in January, working with Emergency Management Australia to coordinate Australian jurisdictions’ responses to 156 offers of international assistance from 70 countries. This included embedding staff in Emergency Management Australia. We rate our assessment against these measures as ‘on track’.

Republic of Fiji Military Forces Ordinary Seaman Epeli Bale (right) and Corporal Simeli Nitaboko clear a fallen tree in Victoria during Operation Bushfire Assist. The department worked with Emergency Management Australia to coordinate Australian jurisdictions’ responses to 156 offers of international assistance from 70 countries [Department of Defence/Kieren Whiteley]

SUPPORT AUSTRALIANS OVERSEAS

Whakaari/White Island volcanic eruption

The Whakaari/White Island volcano in Our close collaboration with authorities the Bay of Plenty, New Zealand, erupted in New Zealand and Australia—including on 9 December. Of the 21 people killed, state and territory governments— 17 were Australian citizens or residents. facilitated the swift medical evacuation

of 12 injured Australians and one

We responded quickly, sending staff permanent resident from New Zealand,

from the high commission in Wellington including complex arrangements for their

and consular officers from Canberra reception and ongoing care in Australia.

to Auckland, Whakatane and Waikato. The department also supported the

Our staff worked with Royal Caribbean Australian Federal Police to assist

Lines to support affected families and New Zealand authorities with disaster

loved ones. We also expedited passport victim identification.

arrangements and helped relatives to travel quickly to New Zealand.

A crisis during the pandemic, Tropical Cyclone Harold swept through the Pacific in April, just as the effects of COVID-19 were being felt more intensely in Australia and around the world. We worked closely with the Royal Australian Air Force to deliver humanitarian relief supplies, and to assist 109 Australians and permanent residents—and 12 approved foreign nationals—to depart impacted countries.

We bolstered our preparedness to respond to the breadth and complexity of future overseas crises we may face in our region and beyond. We implemented new ways to help posts test and practise crisis response plans, and introduced a new crisis registration system. During COVID-19 this system allowed us to:

• provide targeted consular assistance to those most in need

• inform decision-making on facilitated flights

• provide advice to registered Australians on local conditions and other commercial flight options where available.

Crisis Action Plans are a fundamental planning and preparation tool for overseas posts, covering all countries to which posts are accredited. We updated, reviewed and exercised all plans and developed a COVID-19 annex for use by posts in responding to the pandemic. We adopted a cloud-based platform using the whole-of-government GovTEAMS to share the department’s 230+ plans in real time. This enhanced our whole-of-government contingency planning and information sharing.

Effective inter-agency coordination is central to our leadership of a whole-of-government response to overseas crises. We led four joint DFAT-Defence Crisis Preparedness Assurance Team visits to Southeast Asia (Singapore, Malaysia and the Philippines), Africa (Zimbabwe, Kenya and Ethiopia), Papua New Guinea and the Middle East (Jordan and Israel). The regional format enhanced our planning for multi-country crises and whole-of-government collaboration. Our staff also participated in 12 joint exercises, including the Australian Joint Warfighting Series, Talisman Sabre and Exercise Croix du Sud. These exercises highlight our capability to provide foreign policy and humanitarian advice and assistance alongside Defence and other agencies. During the Wuhan assisted departures operation we worked with the Departments of Health and Agriculture, Water and the Environment, and the Australian Border Force to have Australian Medical Assistance Teams (AUSMAT), border and biosecurity officials on those flights.

We further built our crisis preparedness by delivering contingency planning and crisis management training to more than 200 staff before they were deployed overseas. We delivered regional crisis management workshops for our posts in South and Southeast Asia. An innovative pilot of live testing

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exercises—based on a trial between select posts and the department’s Crisis Centre—was a useful and low-cost way to enhance crisis preparedness. It enabled posts to exercise and test crisis plans with Canberra-based officials in real-time and real-world settings. Live testing will now be rolled out across the global network.

Passports

Efficiency and integrity of the passport system

Performance measure How we rate our performance*

The department maintains a high standard in processing passport applications, investigating and prosecuting fraud:

• 95 per cent of passports processed within 10 business days

• 98 per cent of priority passports processed within two business days

• 100 per cent of identified high risk passport applications scrutinised by specialist staff

• 90 per cent of administrative investigations finalised within five business days, and

• 95 per cent of referrals to prosecuting authorities accepted for prosecution.

Achieved

Source: Corporate Plan 2019-20 p. 21, PBS 2019-20 program 2.2 pp. 41-42 | Funding: PBS 2019-20 program 2.2 *Our assessment is informed by internal data sources tracking delivery against targets

Our performance Passport demand told two very different stories during the year.

Before COVID-19, demand for passports was at a historically high level—1.4 million applications by the end of February, a 7.2 per cent increase against the same period the previous year. The onset of COVID-19 saw a sharp decline in passport applications, followed by three months of unprecedented low demand. We issued 1,745,340 passports in 2019-20—an 18 per cent drop compared to 2018-19. Of these, 134,787 were priority passports, 27 per cent fewer than in 2018-19.

We met all of our passport service standards. We processed 96 per cent of passports within 10 business days and 98 per cent of priority passports within two business days. We met these targets by enhancing our surge capacity planning to better respond during periods of peak demand, and improving our efficiency and production workflows.

We referred 48,464 passport applications to our face comparison experts for specialist manual assessment. We identified three cases of passport identity fraud, all of which were historic.

Of the 182 administrative investigations we completed, 97 per cent were finalised within five business days. We refused to process 73 applications on suspicion of fraud or dishonesty in the application, with most decisions related to forged parental consent for child passports.

Six matters were referred to the Commonwealth Director of Public Prosecutions. It accepted five of these cases for prosecution and one remains under assessment. The Commonwealth Director of Public Prosecutions also finalised its assessment of one 2018-19 brief and accepted it for prosecution.

The Minister for Foreign Affairs cancelled 129 passports of reportable child sex offenders. Competent authorities (usually state or territory police) requested that a further 275 offenders without passports be refused travel documents should they apply. These actions were taken under the Australian Passports Act 2005 administered by the department.

Passport staff supporting the government’s COVID-19 response

COVID-19 had a dramatic impact on passport demand between March and June. With fewer staff needed to process applications, the department responded quickly by redeploying passport staff to support the broader Australian Government response to the pandemic.

In the early weeks of COVID-19, passport employees worked in consular emergency call units operating out of our state and territory offices. From early March passport staff redeployed to Services Australia offices to help Australians who had lost their jobs due to COVID-19. By the end of May 243 employees—just over

40 per cent of the department’s total passport staff—had been redeployed to Services Australia roles.

Some of our passport offices made exceptional individual contributions to the government’s COVID-19 evacuation efforts overseas. In early February, staff in our Sydney office worked into the night to process passports so Qantas crew could depart for China’s Hubei province to return stranded Australians. In early April, staff in our Melbourne office processed close to 200 financial transactions within 48 hours to facilitate an evacuation flight for Australians from Peru.

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Figure 14 2019-20 passport statistics

24 %

Applicants were aged 0-5 or +60

70 %

the highest to date

priority passports

emergency passports

Online applications:

1.7m passports

Issued Issued

14.6m Australians have a current passport

End to end, the number of passports printed would stretch from Byron Bay to Noosa Heads.

31,073

134,787

Passports reported lost or stolen

5,915 Issued

The Minister for Foreign Affairs also cancelled 43 passports and refused two passports in 2019-20 on national security and law enforcement grounds other than for child sex offenders.

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Passport-related support for bushfire-affected clients

Many Australians whose homes and personal belongings were destroyed in the 2019-20 bushfires used their passports to help establish their identity. If these documents were lost or damaged in the fires, the department helped by providing replacement passports free of charge.

a bushfire-affected area. Applications were also handled directly by our state and territory passport offices—rather than centrally—which made processing quicker and collection a little easier. We issued 208 free replacement passports and on average most applications were processed in less than a week.

We put in place a streamlined replacement process. No application form was required, only basic information to confirm a passport holder’s identity, and that they were in

The department also facilitated access to its passport face-matching service so Services Australia could fast-track financial assistance to those affected by the fires.

Client satisfaction

Performance measure How we rate our performance*

Clients are satisfied with passport services, including online Achieved services:

• 60 per cent of applications commenced online, and

• 85 per cent satisfaction rate of overall passport service from client survey. Source: Corporate Plan 2019-20 p. 22, PBS 2019-20 program 2.2 pp. 41-42 | Funding: PBS 2019-20 program 2.2 *Our assessment is informed by delivering targets, using internal data sources and quarterly survey results

Our performance The department places a premium on client satisfaction with its passport services. To ensure rigorous performance measurement, we continued our quarterly independent surveys conducted by ORIMA Research. Overall, 93 per cent of respondents rated the department’s passport services as satisfactory or very satisfactory, exceeding our target of 85 per cent. Despite the challenges of COVID-19, satisfaction levels continued to increase, with ORIMA’s quarterly survey ending April 2020 reporting the highest ‘very satisfied’ rating on record.

Australians continued to embrace our online application service as an alternative to paper forms. The proportion of clients using online passport applications surpassed our target of 60 per cent, increasing from 68 per cent in 2018-19 to 70 per cent in 2019-20.

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Delivering the R series passport

Performance measure How we rate our performance*

Delivery of the R series passport by 2020-21. Not on track

Source: Corporate Plan 2019-20 p. 22, PBS program 2.2 p. 41 | Funding: PBS 2019-20 program 2.2 *Our assessment is based on progress of R Series Passport development

Our performance The next generation of Australian passports—the R series—will build on the world-leading security features of the current P series passport, designed to prevent forgeries and detect any alterations.

Progress to deliver the R series by 2020-21 has been directly affected by COVID-19. The pandemic’s impact on international travel, passport issuing rates, and manufacturers’ longer lead times for key components meant we deferred the release date to 2021-22.

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tt@,···· .. °} . . . . . . .. .. ·····

PROVIDE A SECURE AND EFFECTIVE OVERSEAS PRESENCE

The pandemic, growing cyber threats, sporadic civil unrest and world-wide protest movements added to an already complex operating environment in 2019-20. We responded strongly to these challenges, giving staff the tools and skills to identify, assess and mitigate, where possible, security risks, no matter where they work or what work they do. We harnessed technological advancements to enable remote and accessible working, and prioritised cyber resilience. We refocused our property services to protect staff and visitors to our domestic and overseas premises during COVID-19.

Security of our network

On track

Performance measure How we rate our performance*

Effective security culture and practices guided by the DFAT Security Framework.

On track

Source: Corporate Plan 2019-20 p. 23, PBS program 3.1 p. 45 | Funding: PBS 2019-20 programs 1.1 and 3.1

Staff engagement with security materials and products, and evidence of risk-based decision making on security issues using the DFAT Security Framework security risk management tools.

Source: Corporate Plan 2019-20 p. 23, PBS program 3.1 p. 45 | Funding: PBS 2019-20 programs 1.1 and 3.1 *Our assessments are informed by tracking implementation of recommendations from internal and external audits and reviews, assurance reports, project reporting and qualitative data

Our performance We improved transparency, capability and accountability of our services, strengthening the department’s security culture and risk management practices. We rate our performance as ‘on track’ against these measures, while acknowledging we need to continue long-term investment in our people and our physical security measures.

Effective security culture and practices To deepen the department’s security culture, we drew on recommendations from a number of previously conducted audits and internal reviews, as well as seeking feedback from our own network. We also reviewed security breach, incident and other data.

We delivered innovative security awareness campaigns to educate staff, most recently on the government’s new sensitivity and security classifications. This resulted in a high level of engagement with intranet content, attracting more than 950 hits in the first month. We reviewed and streamlined risk management tools and key security policies to improve the DFAT Security Framework (DSF). This enhanced staff engagement, with a 43 per cent increase in the number of staff reviewing the risk management tools and a 173 per cent increase in staff accessing the revamped travel security policy. 1

We made our security clearance processes more efficient by digitising and transforming key elements.

PROVIDE A SECURE AND EFFECTIVE OVERSEAS PRESENCE

This contributed to a significant service enhancement with a 61 per cent increase in the number of initial Negative Vetting clearances completed compared to 2018-19, and a 12 per cent reduction in overall processing times. We are also making a concerted effort to build the number of departmental staff with Positive Vetting clearances.

Adapting to the COVID-19 operating environment, we refocused resources to provide support remotely and tailored advice to our network. We provided targeted security guidance to support the transition to remote working arrangements, completing threat and risk assessments and awareness raising to continue protecting people, information and assets across the globe. We streamlined risk assessment processes to facilitate essential staff travel.

Managing security risk We implemented a peer review process and targeted training to improve the quality and consistency of reporting, enhance governance and improve security risk management. As a result, the reporting provided a more nuanced understanding of posts’ security environments and guided resources to areas of highest risk. We completed security fit-outs for new interim chanceries in Tehran, Abuja and Washington, and upgraded perimeter fences in New Delhi, Port of Spain and Port Moresby to address key security vulnerabilities. We started security upgrades in a further 19 locations.

By integrating the Security Enhancements Program into ‘business as usual’, we were able to respond swiftly to COVID-19 challenges. As global travel restrictions affected infrastructure builds and security inspections at overseas posts, we pivoted to bring forward domestic projects—including improved security measures at the RG Casey Building in Canberra—and enhance secure communications facilities.

We began an overhaul of security training to lift our ability to understand and manage security risks and the quality of our service to all Australian agencies represented overseas. To overcome COVID-19 restrictions that prevented face-to-face learning, we combined online pre-course work, virtual tours of posts and live web sessions. Our training delivery model is now more integrated, agile and responsive. We delivered 117 training courses either face-to-face or through other mechanisms over the year.

We continued building a network of security specialists to provide real-time access to security expertise for posts, and a more comprehensive understanding of regional security environments. A new regional security officer commenced in Abuja. A further eight security specialists will be deployed as COVID-19 restrictions allow.

Fit-for-purpose and secure ICT Our ICT environment has been undergoing significant reform since 2018 through careful investment and measured decisions in line with our Corporate Plan. With many of our technological reform foundations in place before COVID-19, the department was able to mobilise operations, test and strengthen remote and innovative technologies, and transition these into normal working life.

Performance measure How we rate our performance*

Fit-for-purpose and secure ICT systems. On track

Source: Corporate Plan 2019-20 p. 24, PBS 2019-20 program 3.1 p. 45 | Funding: PBS 2019-20 programs 1.1 and 3.1 * Our assessments are informed by our rapid delivery of large scale remote working arrangements during COVID-19, the shared audit assurance program and our maturing compliance with the ACSC Essential Eight (E8) Cyber Security Maturity Model

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ICT Response to COVID-19

When the department activated its pandemic plan, we had advanced audiovisual technology and a strong remote working capability ready and waiting. Staff made more than 19,000 video conferencing calls in April—13,000 more than the same time last year. From 1 March the department supported an average of 3,400 remote users a day. This compared to an average of 315 remote users before COVID-19.

We had already invested in expanding our gateway infrastructure, environment and associated licencing and we ramped up quickly to meet the department’s needs. The ICT supply chain quickly became the one area outside of our control that had potential to significantly affect our IT capability. Quick planning and engagement with multiple vendors enabled us to source additional equipment to meet our needs.

We introduced game changing tools to the department’s central COVID-19 Coordination Unit, improving the quality

of information provided to decision makers and the speed of operations. Microsoft Teams—a cloud-based platform—enhanced collaboration and reduced the need for face-to-face staff handovers. We delivered five desktop applications to the department in a few weeks and these became critical to the government’s efforts to enable Australians overseas—including our staff—to return safely. Data from these custom-built applications fed directly into daily briefings for the Prime Minister, Foreign Minister and the Secretary, supporting critical COVID-19 decisions with real-time information.

These technological advances will remain long after the pandemic. COVID-19 has provided valuable lessons and shown that our ICT transformation agenda is on point and delivering fit for purpose and secure ICT systems.

We will continue investing in innovation and emerging technologies. Moving the department to the cloud is our initial priority. Close to 50 per cent of staff are using cloud-based email. Investment in cloud-based platforms has allowed us to rapidly develop and deploy technology to meet specific business needs, such as relationship management capability in ‘Contacts and Events’.

We also continued to build cyber maturity in accordance with the Australian Cyber Security Centre’s Essential Eight Cyber Security Maturity Model (E8). This has increased our compliance and enabled us to stay ahead of malicious cyber actors—a key part of our cloud transition activities.

Centralised logging capabilities across the majority of our global network are enabling us to detect, analyse and respond quickly to suspicious network activity, and to keep our information safe. We used increased cyber assessment capability to proactively block the use of several mobile applications, reducing the risk of malicious actors gaining access to our information.

Effectively managing our property The department applies best practice measures to ensure safe work sites and bespoke solutions in some of the most challenging environments in the world. We manage the differing approval requirements in various overseas jurisdictions, sometimes in challenging markets where there is varying availability of materials and skills provided by local industry.

We apply a range of industry methodologies and financial principles in project delivery. We review lessons learnt for all completed capital works projects and apply the outcomes to future project development and delivery, including forward planning to identify and treat project risks.

Performance measure How we rate our performance*

Construction and refurbishment of departmental overseas property estate completed to agreed quality standards to meet government requirements and deliver operational efficiencies.

Partially on track

Source: Corporate Plan 2019-20 p. 24, PBS 2019-20 program 3.2 p. 47 | Funding: PBS 2019-20 programs 1.1 and 3.2 *Our assessment is informed by tracking project progress against baseline schedules, outcomes delivered against defined deliverables, and the impact of COVID-19 on construction from February 2020

Management and refurbishment of the domestic property portfolio, including the state and territory offices, to meet government requirements and deliver operational efficiencies.

On track

Source: Corporate Plan 2019-20 p. 24 | Funding: PBS 2019-20 program 1.1 *Our assessment is informed by tracking project progress against schedules, outcomes delivered against departmental priorities

Our performance COVID-19 affected construction and refurbishment projects across the overseas property estate, disrupting availability of workforce, resources and supply chains. Projects in the construction phase slowed or were paused, while projects in the planning phase were delayed by the inability to conduct proper feasibility studies and due diligence. Our forward planning will take account of likely further impact in subsequent years on project completion times. Despite this, we maintained revised schedules to deliver capital works projects. We assess our performance as ‘partially on track’ for the overseas estate and ‘on track’ domestically.

We delivered interim chanceries in compressed timeframes in Tehran and Abuja. We delivered an interim chancery in Washington on schedule, completing the department’s largest commercial office fit-out. We handed over the former chancery for demolition and works are progressing, but the project has been challenged by the impact of COVID-19, fluctuations in foreign exchange rates, and the application of tariffs. As a result, completion is now forecast for the first half of 2023.

We sourced property solutions to operationalise new posts in Koror and Rarotonga. COVID-19-related travel restrictions hindered progress on new posts in Majuro, Papeete and Alofi, but the department remains focused on establishing all new posts by 2022. We completed residential refurbishments in Apia, Honiara, Port Moresby, Port Vila and Suva.

Our projects model safe work practices aligned with Australian construction industry expectations in challenging environments. We delivered construction and fit-out works with a recorded Long Term Injury frequency lower than comparable Australian industry benchmarks.

We collaborated with the Australian prefabrication construction industry to deliver two new solutions for Rabat and Tarawa. Our first off-site constructed chancery—for Rabat—was built, tested and commissioned in Sydney and then shipped to Casablanca. Installation was delayed by COVID-19 restrictions, but the chancery is ready to be transported and reassembled in the Canadian Embassy compound in Rabat, and we have recommenced site works in preparation. This world-first innovation demonstrated a new capability to deliver fast-tracked, high-quality, low-maintenance, environmentally friendly, secure buildings anywhere in the world. With 75 per cent of the project budget spent in Australia, this model will be refined for further use in other locations.

COVID-19 travel restrictions affected site works, causing delays in the Tarawa Property Replacement Project. Five residential properties and a new chancery—designed and manufactured in Australia— will be shipped from Melbourne to Tarawa for assembly. This project showcases environmentally sustainable design and will set a new benchmark for future Pacific projects.

PROVIDE A SECURE AND EFFECTIVE OVERSEAS PRESENCE

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Our first prefabricated chancery—for our post in Rabat—was built, tested and commissioned in Sydney in collaboration with the Australian prefabrication construction industry. It was loaded at Port Botany for shipping to Morocco [C.C. Pines/ Admiralty Maritime Consultants]

Our domestic portfolio management included a strong focus on health and safety. We responded to bushfire-related smoke hazards by reprioritising services and working with building owners to maintain air quality across our portfolio.

In response to COVID-19, we worked through the department’s business continuity mechanisms to protect the health and safety of staff in Australia. We supported relocation efforts to prevent interruption of key services and functions while adhering to social distancing restrictions. We also established protocols to support health and hygiene in the workplace, underscored by a comprehensive internal communication campaign.

We completed a range of capital projects to support departmental priorities at our Canberra sites.

Managing our assets

Performance measure How we rate our performance

Asset management plans are in place for all owned Achieved properties in the overseas estate. Source: Corporate Plan 2019-20 p. 24, PBS 2019-20 program 3.2 p. 47 | Funding: PBS 2019-20 programs 1.1 and 3.2 *Our assessment is informed by the delivery of asset management plans contained in the property management system, which is the repository for property-related

information

PROVIDE A SECURE AND EFFECTIVE OVERSEAS PRESENCE

Our performance Asset management plans are in place for all properties in the overseas owned estate, including those where COVID-19 has limited detailed inspections. The plans guide decision-making on priorities for maintenance, upgrades, replacements and divestments to optimise the management and performance of building assets.

The need for new capital initiatives to support security and foreign policy priorities has increased demand on resources to maintain assets to acceptable standards. We are monitoring this risk to improve decision-making, taking account of both property and strategic priorities.

Client satisfaction with property services The Commonwealth’s owned and leased portfolio is managed by the department’s Overseas Property Office and Services (OPO) and global real estate service provider, Jones Lang LaSalle (JLL).

Performance measure How we rate our performance

Satisfaction ratings of over 80 per cent on the Achieved performance of the service provider and the Overseas Property Office. Source: Corporate Plan 2019-20 p. 24, PBS 2019-20 program 3.2 p. 47 | Funding: PBS 2019-20 programs 1.1 and 3.2

*Our assessment is informed by the annual client satisfaction survey results conducted by an independent third party

Our performance Independent research group ORIMA Research conducted the annual online survey to assess client satisfaction with the performance of OPO and JLL’s management of the domestic and international property portfolio. The 2020 survey received 229 individual responses from 107 locations, a 96 per cent response rate. The survey recorded ratings of 98 per cent satisfaction for OPO and 93 per cent satisfaction for JLL—the highest ratings on record.

The 2019-20 survey showed a strengthening in results across a broad range of measures, exceeding the target of 80 per cent satisfaction, a solid increase compared to 84 per cent in 2018-19. We worked in partnership with JLL to manage the COVID-19 risk on properties in Australia and overseas by implementing best practice measures and delivering property services, despite supply chain challenges. We completed approximately 12,500 planned and preventative maintenance tasks and 19,000 reactive maintenance tasks initiated by staff across the network.

1 The number of staff reviewing or accessing the material in December 2019 compared to in December 2018

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REPORT ON FINANCIAL PERFORMANCE

Departmental operating result The department continued to operate in an environment of strong financial discipline. The increased complexity in the broader international operating environment and tightening departmental budget position has required careful reprioritisation of resources to deliver against departmental goals.

While COVID-19 saw increases in costs for consular, staff welfare, IT support for remote working and property cleaning expenses, these were partially offset by decreases in expenditure on travel and representation activities. The remaining impact of COVID-19 was largely covered by $10.6 million in funding received to respond to the pandemic.

See also Managing our financial resources, pages 121-123, and the financial statements, pages 127-199.

Revenue The department reported $1,645.0 million of revenue in the Statement of Comprehensive Income, comprising:

• $1,473.2 million of appropriation revenue from government

• $159.0 million of own source income

• $12.8 million in gains including sale of assets.

This represents an increase of $41.0 million from 2018-19. The main factor contributing to this movement is an increase in appropriation revenue from government, including $10.6 million in funding towards the department’s response to COVID-19.

The department also reported $131.3 million of other comprehensive income arising from asset revaluation movements in the Statement of Financial Position. This is recorded directly as equity on the Statement of Financial Position and is not incorporated into the departmental operating result.

Expenses The department reported $1,840.3 million of expenses in the Statement of Comprehensive Income. This is an increase of $42.8 million over 2018-19.

The main factors contributing to the movement in 2019-20 were:

• an increase in employee expenses of $35.0 million due to the decrease in the 10-year government bond rate which increased the long service leave provision; an increase in overseas expenses due to exchange rate fluctuations; and the impact of a two per cent pay rise on salary, superannuation and leave expenses

• an increase in expenses of $34.9 million from implementation of the new accounting standard AASB 16 Leases, which resulted in increases in depreciation, finance costs and unrealised foreign exchange losses offset by a decrease in property lease expenses

• a decrease in other depreciation and amortisation of $10.4 million and a decrease in supplier costs of $12.3 million due to net COVID-19 impacts on business as usual.

Assets and liabilities The department reported a strong net asset position of $4,565.5 million in the Statement of Financial Position, with liabilities equating to 26 per cent of the total asset base.

This is an increase of $74.9 million from 2018-19. The main factors contributing to the movement in 2019-20 were:

REPORT ON FINANCIAL PERFORMANCE

• implementation o f AASB 16 Leases which resulted in right-of-use lease assets of $1,181.8 million and lease liabilities of $1,166.0 million being recognised and removal of lease straight-lining which decreased payables by $26.3 million

• an increase in building assets of $136.1 million, predominantly through revaluation and acquisition

• a decrease in appropriation receivable of $70.6 million for operating, which resulted from the net cost of services exceeding revenue from government and $36.1m in capital spend on projects where funding was carried over from last year.

Figure 15 Summary of departmental expenses

Passport expenses **

$1,840.299 TOTAL million

Security expenses

$106.317 million $86.965 million

Depreciation and Information and

amortisation communications technology

(excluding ROU $106.616 million

asset depreciation)

Travel expenses $187.183 million $47.528 million

Other expenses Property-related expenses* $148.435 million $268.698 million

Employee-related expenses $888.534 million

* Property-related expenses includes depreciation on right-of-use (ROU) property assets under AASB 16 Leases. ** Passport expenses only include the direct supplier costs for passport production

Administered program performance In 2019-20 expenses administered by the department on behalf of government were $4,404.7 million, an increase of $341.2 million over 2018-19. The majority of the increase is attributed to an increase in multilateral replenishments and other loans of $335.0 million resulting from a new pledge and loss from re-measuring multilateral liabilities due to changes in the Australian Government bond rate and foreign exchange fluctuations. Other grants and contributions increased by $53.0 million compared to 2018-19, due primarily to funding to Tourism Australia for the Bushfire Response Package.

The department’s $3,661.4 million administered development program is focused on the Indo-Pacific (see pages 59-76 for more information on the development program).

In 2019-20 income administered by the department on behalf of government was $583.7 million, which is $63.4 million less than 2018-19. The movement was due predominantly to a decrease of $95.5 million for passport, consular and other fee revenue resulting from the COVID-19 travel restrictions. Return of prior year administered expenses following acquittal of aid funds increased by $18.0 million. The Export Finance Australia (EFA) dividend, which is calculated on prior year net profits, and the EFA competitive neutrality payments increased by $12.3 million.

Other comprehensive income was $140.6 million, a decrease of $100.2 million from 2018-19. This decrease was primarily driven by an increase in the value of multilateral subscriptions by $42.7 million as assessed by independent experts, and a smaller increase in the value of investments relating to net assets of Tourism Australia and EFA’s commercial account.

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MANAGEMENT AND

ACCOUNTABILITY

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MANAGEMENT AND ACCOUNTABILITY In 2019-20 we saw the benefits of the ambitious program of management reform and organisational change we have been undertaking over several years. We were positioned to respond with agility to the challenges of COVID-19 and to keep the overseas network operating to deliver services to Australians and support the government’s international agenda.

Managing a global operation during COVID-19

As the impact of the pandemic was felt Chief Operating Officers Committee— around the world, we managed complex on cross-government responses to the logistics in Australia and overseas to pandemic. keep the network functioning effectively.

We worked decisively and collaboratively,

We rolled out technology and equipment embedding a stronger risk culture to to enable a swift and secure transition to a ensure the department continued to highly mobile workforce within weeks. In deliver the highest standard of services Canberra we relocated over 250 staff and to ministers and to the Australian public. adopted practices to ensure COVIDsafe We will build on our experiences as we workplaces across all our buildings. address the longer term implications for

our overseas operations.

We worked with colleagues across the APS—including through the

The reform agenda While we pivoted to deal with the challenges of COVID-19, we also continued our program of organisational reform. Its value was clear during the pandemic response.

Transform22 is a three-year comprehensive program reforming corporate enabling services in Canberra and at posts. By 2022 it will have reshaped our core enabling services and delivery of whole-of-government services internationally. A year into Transform22, we are benefiting from simplified, streamlined services, enhanced data management and new ways of working.

Our investment in enhancing data capture and business intelligence reporting is making a tangible difference to how we work and paid dividends during COVID-19 for departmental and partner agency staff. Data from our custom-built applications, for example, provided real-time information for briefings for the Prime Minister, Foreign Minister and the Secretary and supported COVID-19-related decision making. For more information, see page 102.

Finance reform In 2019-20 we took advantage of new technologies to replace routine tasks, supporting the department to rationalise its corporate finance processes. We progressively implemented global banking arrangements, streamlining banking relationships and improving our financial management system (SAP). This substantially reduced time-consuming payment runs and centralised visibility of cash management at overseas posts.

MANAGEMENT AND ACCOUNTABILITY

We strengthened internal financial reporting practices to improve financial accountability and sustainability. This helped us focus on emerging challenges. During COVID-19 our expanded global banking process enabled fast switching of payments operations from posts to Canberra, freeing up staff to respond to consular issues overseas.

Modernising our overseas operations The reDESIGN program continued to strengthen our global service delivery model in support of low administration, high impact posts. Its hub-and-spoke approach currently covers 49 posts, streamlining processes and removing duplication. We moved some work to central hubs or Canberra and automated manual processes. We started with European regional posts in 2019-20 and will expand to posts in other regions in coming years.

COVID-19 demonstrated reDESIGN’s value. Regional hubs were able to quickly reprioritise work to provide leadership to and support client posts with staff welfare, consular services, payroll and supplier payments.

We also applied new and innovative approaches to achieve better outcomes as we established new posts in Koror, Palau and Rarotonga, Cook Islands, expanding our diplomatic footprint to reflect our strategic approach in the region.

Leading whole-of-government services overseas As an overseas hub under the APS-wide shared services program, we are driving a stronger service culture and improving coordination across the department and partner agencies. This is being achieved through our leadership of the reinvigorated deputy secretary-level Global Service Delivery Board, and through the department’s review of our delivery frameworks for management, ICT and security services.

Under the Service Level Arrangement for Management Services, we provided a catalogue of over 200 services to Australia-based and locally engaged staff of 28 partner agencies. This included financial management, human resources, and property and fleet management.

In addition, the department’s ICT workforce and mobile technology supported:

• 170 sites in Australia and overseas

• more than 16,300 users in Canberra, at posts and at ministerial and state and territory offices

• 39 partner agencies.

Under the ICT memorandum of understanding, partner agencies in Australia and overseas received:

• secure communications and networks

• secure devices (computers, printers and mobile phones) and applications (PDMS, cables)

• support and maintenance of the global communications environment.

Our services and support were critical during the response to COVID-19. We provided the enabling technology and assistance for partner agencies to support remote and flexible work arrangements in support of overseas operations.

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Our people The department operates posts in 111 locations overseas, with an additional nine posts managed by Austrade providing consular services. We also have offices in every Australian state and territory capital and the Torres Strait. At 30 June, 3,049 APS staff worked in Australia and 833 APS employees worked at our overseas posts, with some temporarily working from Australia due to the impact of the pandemic (see appendix 1, page 202).

Before COVID-19, the department had commenced a modernisation program to lift our HR management, systems, practices and policies, and to frame the way we recruit, retain and develop our people. As a global organisation grounded in the Australian Public Service—and working in an increasingly complex operating environment—we need people with diverse capabilities.

To strengthen our strategic workforce planning, the department is moving to a capability-based workforce model, initially focused on international development expertise. Our planning drew on our strengthened workforce data and analytical capability—critical for supporting diversity and inclusion and the broader HR modernisation program. We ran targeted recruitment rounds in priority areas, and adapted our recruitment practices under COVID-19 restrictions using technology and online tools to run cost-effective and streamlined recruitment processes.

Learning and development Our Diplomatic Academy (DAC) moved quickly to deliver training programs online, including for 26 languages and other courses using flexible and ‘bite-sized learning’ options. Over the year, we delivered over 400 face-to-face and online courses and learning opportunities to more than 8,000 learners. Our focus is on building the capability of staff in core tradecraft skills. Participation from across the APS and state and territory governments has fostered stronger whole-of-government knowledge and skills transfer.

We continued to encourage international participation in core programs, including in a new four-week online program ‘Understanding the Pacific’. Twenty-six international participants—including strong representation from Pacific countries—joined the department’s 48 graduate trainees in 2019 for a six-week training program.

Employment arrangements and non-salary benefits The department’s Enterprise Agreement sets out the terms and conditions for non-Senior Executive Service (SES) APS employees.

SES staff are employed under the terms of a determination made by the Secretary under section 24(1) of the Public Service Act 1999. Key management personnel, SES and other highly paid staff remuneration is set out in Note 6.2 of the financial statements (see page 178) and in appendix 2. Following the government’s decision on 9 April, we paused general wage increases for six months and implemented a freeze on increases in remuneration, entitlements and allowances for all SES.

The department provides a range of non-salary benefits, including influenza vaccinations, on-site gym facilities in Canberra and some posts, and prioritised access to designated childcare centres in Canberra.

At 30 June we employed 2,106 locally engaged staff in our overseas missions. These staff play a crucial role in promoting, protecting and advancing Australia’s interests internationally, and contributing to economic growth and global stability. They provide essential in-country knowledge, networks and continuity at our overseas posts. Locally engaged staff are engaged under local labour law as it applies to diplomatic and consular missions.

MANAGEMENT AND ACCOUNTABILITY

Staff welfare We operate in high-risk locations and staff welfare is our top priority. We are committed to embedding an organisational culture that effectively manages work health and safety risks, and fosters behaviours to sustain healthy and safe work environments. We consider WHS in all our operational decision-making.

We also provide staff with counselling services to build resilience and cope with complex and stressful environments.

Our Staff and Family Support Office and the department’s mental health strategy were at the centre of efforts to ensure a mentally healthy and inclusive workplace. We maintained Gold level status as a workplace with Mental Health First Aid Australia.

During the year, staff and families accessed:

• 1,797 individual sessions supporting over 862 staff and family members

• 138 training courses (in person and virtually) reaching over 2,671 staff, on topics such as workplace mental health for managers, stress management and self-care, and working with objectionable materials

• five mental health first aid courses.

We maintained regular contact and communication to support the health and wellbeing of our staff during COVID-19, including staff at post and those temporarily returned to Australia. We worked collectively across the department in Canberra, offices in Australia and our posts overseas to provide regular updates on the pandemic and the department’s responses, medical advice and counselling services. Our Employee Assistance Program providers further built our capacity to support staff.

Engaging with risk Over the past three years we have refined our risk management framework. This positioned us well to support agile decision making in response to COVID-19 to:

• address risks to Australia’s national interests

• meet the significant increase in consular demands

• ensure staff wellbeing.

Management of risk is at the core of our strategic decision-making processes, including robust discussion by senior governance committees on risks of proposed actions. In 2019 the department won the Risk Management (Enterprise Wide) category of the Comcover Awards for Excellence in Risk Management. This recognised our work to systematically embed risk management across the department and to develop a high level of risk capability and maturity.

Our Enterprise Risk Register is updated three times a year and provides routine assurance of the critical controls to manage operations. Risk also underpinned the business continuity measures we put in place to respond to COVID-19 (see page 114).

Promoting a positive risk culture is a priority. The COVID-19 experience highlighted to staff the importance of engaging with risk. The results of annual surveys to gauge staff views of risk management, along with the outcomes of the APS Employee Census, inform engagement to help build risk management capability across the department.

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Ensuring business continuity during COVID-19 Before COVID-19, the department had refined its business continuity planning to ensure essential business functions in the event of a major disruption. We prioritised consular and passport services to ensure ongoing support to Australians. This positioned us strongly as COVID-19 disrupted every aspect of our business operations in different ways and at different times.

Enterprise business continuity The department activated its Enterprise Pandemic Plan on 18 March, with three priorities driving business continuity across the network:

• Ensuring the welfare of staff, including measures to manage the risks of COVID-19 infection, and of psychosocial injury resulting from prolonged, high-tempo operations.

• Continuing services for Australians, including meeting the increased level of consular demand.

• Supporting the whole-of-government response to the pandemic, including:

◦ supporting regional and global partners in managing the pandemic

◦ working to keep supply chains open and supporting Australian businesses

◦ providing government assessments of management of the pandemic across the world and the potential security, trade and economic implications for Australia.

We redirected resources and changed structures to ensure operational agility. We redeployed staff internally to focus on immediate priorities and deployed 326 staff and contractors to contribute to the whole-of-government COVID-19 response, and to help the Australian public.

Our Enterprise Pandemic Plan supported effective decision-making through the department’s governance structure, with a live COVID-19 Management Enterprise Risk Register monitoring business continuity measures. We continued to revise our plan in response to changing circumstances in Australia and internationally.

We conducted real-time evaluations and embedded lessons learnt in annual business performance assessment processes, assisted by innovative data visualisation tools delivered by a dedicated COVID-19 Data Analytics Unit.

Business continuity in the overseas network Business continuity for posts is managed through crisis action plans. Plans were updated in early 2020 to include a COVID-19 annex. All posts activated their plans in March.

All Australian posts remained operational to deliver essential services. Post-by-post decisions on physical access and face-to-face services were based on risk assessments for staff and visitors. In some cases, dedicated teams in Australia provided additional support, including surge support for telephone switchboards, consular services and administration. Posts also used remote work arrangements and virtual communication channels to support continuity of operations.

Almost 300 departmental staff and 800 dependants temporarily returned from posts to manage medical, welfare and safety risks, although more than 70 per cent of our overseas staff remained at post to deliver essential services. Rotation plans provided staff respite and mitigated work health and safety risks. This included through temporary backfill with staff from Australia. Where travel safety and individual circumstances allowed, some staff and dependants were able to return to posts. As the lead agency managing the government’s presence overseas, we worked closely with partner agencies to align our approaches in protecting staff and families overseas.

MANAGEMENT AND ACCOUNTABILITY

Director in the department’s Indo-Pacific Centre for Health Security, Miriam Carter, works from home in Canberra as part of the department’s business continuity arrangements during COVID-19 [Elsie Carter]

Business continuity for Australian-based operations We managed Australia-based operations in line with the direction of the Australian Public Service Commission (APSC) and local state and territory health authorities.

Business continuity arrangements commenced in Canberra on 18 March. In line with APSC direction, on 30 March the department directed all staff who were able to work from home to do so, and put measures in place in offices to meet social distancing requirements. At the highest point, more than 3,400 staff were working remotely in Australia and overseas. We issued an unprecedented 3,041 remote access permissions in March and April to enable this.

The department commenced a phased return to usual workplaces for Australian-based operations on 8 May in line with the APSC’s direction and with clear structures and guidelines to maintain a COVIDsafe workplace. We continued to monitor and adjust arrangements to the local situation at each office.

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Our performance

Enterprise performance The department is committed to rigorous, evidence-based planning and performance processes as part of our accountability to ministers, parliament and the Australian people. Measuring our impact in a volatile global operating environment can be difficult, but the impact of COVID-19 has underlined the importance of robust assurance systems. We use a number of methods to test and make judgements about our performance supported by verifiable evidence.

Our performance framework is as follows:

Plan: the Corporate Plan is the department’s primary planning document alongside the Portfolio Budget Statement. It informs the business plans of work areas and heads a cascading system to individual performance and development agreements.

Monitor: we monitor progress against the targets and metrics we establish, and those set by government. Results are endorsed by individual members of the department’s executive and through our governance committees.

Review: once a year, members of the department’s executive review the performance of each group and division, and agree a rating against relevant Corporate Plan and Portfolio Budget Statement performance measures. The Performance, Risk and Resourcing Committee endorses results. The executive reviews the performance of posts on a rolling basis.

Learn: divisions and groups identify lessons learnt as part of their annual reviews. These lessons and feedback to business units on their performance inform business plans. Plans are living documents and we encourage teams to update these to reflect feedback and changed contexts.

Individual performance We formally assess individual performance annually, with mid-term feedback after six months.

The department encourages employees and managers to be open and generous in giving formal and informal feedback. We provide training, support, online toolkits and mentoring programs to help improve individual performance, including support for complex issues. COVID-19 and working from home arrangements reinforced the importance of regular performance feedback, and keeping staff connected through frequent, meaningful communication.

MANAGEMENT AND ACCOUNTABILITY

Diversity and inclusion The department is the face of Australia to the world. Our staff must represent the breadth of talent and diversity of the Australian people, a diversity which is a core national strength.

We are committed to a safe and inclusive workplace. Senior Canberra-based diversity champions provide high-level support and work with staff networks. The department’s Diversity and Inclusion Framework provides practical actions to build an inclusive culture that supports our people to be their authentic selves and reach their full potential.

The 2019 Australian Public Service Employee Census results indicated that 85 per cent of staff (both APS and locally engaged staff) who responded believed the department is committed to creating a diverse workforce, and 89 per cent believed their work colleagues behave in an accepting manner towards people from diverse backgrounds.

We are improving employment outcomes for Aboriginal and Torres Strait Islander Peoples by implementing our Indigenous Recruitment and Career Development Strategy 2016-2020. In 2019-20, 3.09 per cent of our APS employees identified as Aboriginal and/or Torres Strait Islander, with 118 ongoing Indigenous APS employees (see appendix 1, page 208). We applied affirmative measures for Indigenous Australians in bulk recruitment at the APS6 level and for a specialist EL1 position.

We recruited a new Indigenous careers adviser to work with Indigenous employees to identify and pursue career development opportunities, provide strategic advice to senior leaders, and improve cultural competency in the department’s broader workforce.

Our Disability Action Strategy 2017-2020 is building the representation of people with disability in our workforce. In 2019-20, 125 of our APS employees reported a disability (3.24 per cent). This was lower than the 2019 APS Employee Census, where four per cent of those who responded identified as having a disability. We applied the RecruitAbility scheme in all our recruitment processes and conducted bulk affirmative measures (disability) recruitment at the APS6 level. Disability reporting details under the National Disability Strategy 2010-2020 are available at www.dss.gov.au

We provided disability confident training to staff, managers and recruitment panels. We also supported staff with disability to participate in the department’s International Skills Development Program.

In June 684 APS employees reported being from a culturally and linguistically diverse background—17.78 per cent of our APS employees. According to the 2019 APS Employee Census, 43 per cent of staff who responded (including locally engaged staff) were born overseas, and 41 per cent spoke a language other than English at home. During Harmony Week in March, we launched a ‘Faces of Diversity’ intranet page for staff to share their stories.

According to the APS Employee Census, five per cent of our employees identified as lesbian, gay, bisexual, trans, gender diverse and/or intersex (LGBTI). In June the Secretary appointed a new LGBTI Champion, confirming our commitments set out in our LGBTI Strategy 2018-2021. We participated in a range of initiatives to improve inclusion in Australia and at our posts. We are a member of Pride in Diversity and participate in the annual Australian Workplace Equality Index.

We refreshed our Women in Leadership (WIL) strategy—to be launched in 2020-21—to enable WIL to reach every corner of the department and for change to be embedded in our culture. We reached new heights in gender equality in the Senior Executive Service and with our heads of mission overseas. As COVID-19 tested our usual ways of working, we increased our uptake of flexible, agile and inclusive work practices introduced through the WIL agenda.

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Governance The department’s governance framework provides a mechanism for oversight, contestability, transparency and collaboration in decision-making, and supports the department to meet its strategic and operational objectives. Our governance arrangements foster a culture of leadership, inclusion and innovation, and ensure a strong focus on enterprise risk and performance.

The Secretary chairs the department’s primary governance bodies—the Strategic Policy Committee and the Performance, Risk and Resourcing Committee. These committees are supported by the Operations Committee and the Aid Governance Board, both chaired at Deputy Secretary level.

The Strategic Policy Committee defines the department’s strategic priorities and ensures a coherent policy approach. The Performance, Risk and Resourcing Committee ensures the department is achieving its strategic and operational objectives.

The Operations Committee oversees management and effective delivery of the department’s enabling services, including human resources, finance, information and communications technology, and property. It has one independent member.

The Aid Governance Board oversees the development program and acts as an advisory body to the Strategic Policy Committee, and the Performance, Risk and Resourcing Committee. It ensures the development program is consistent with government policy, achieves development impact, and promotes value for money. It has one independent member.

The Ethics Committee oversees the department’s conduct and ethics policies, and promotes high standards of probity, professionalism, accountability and conduct.

The Workplace Relations Committee comprises employee, union and management representatives and is our principal forum for consulting our workforce about employment conditions and exchanging views on workplace issues.

The Indigenous Taskforce provides advice and guidance on Indigenous issues across the department. It is a forum for the Indigenous Employees Network to engage with the executive.

The Audit and Risk Committee (ARC) provides independent advice to the Secretary on the department’s:

• financial and performance reporting responsibilities

• risk oversight and management

• internal control and compliance framework, and

• external accountability requirements.

It has five independent members, including the Chair, and three internal members. The Australian National Audit Office (ANAO) attends as an observer. Committee members bring a broad range of private and public sector experience and skills, including strategy, policy, risk management, performance, international development, security, finance, legal, compliance, change management and project management.

See appendix 5 for further details on committee members.

The committee complies with section 45 of the PGPA Act and section 17 of the PGPA Rule, in line with its charter: https://www.dfat.gov.au/about-us/corporate/Pages/corporate-information-and-resources/ audit-and-risk-committee

The Chief Auditor leads our Internal Audit Branch and, through the ARC, provides independent assurance and advisory services to the Secretary on managing risks and systems for internal control in

MANAGEMENT AND ACCOUNTABILITY

relation to business performance and conformance. Internal Audit also works with second line assurance functions to promote accountability, transparency, performance and sound governance aims.

In 2019-20 the Independent Evaluation Committee oversaw the work of the Office of Development Effectiveness and provided independent strategic and technical advice.

Countering fraud In 2019-20 the department had in place reasonable and appropriate measures, mechanisms and programs to prevent, detect, investigate, record and report on fraud and corruption. An ANAO performance audit in June determined fraud control arrangements in the department complied with mandatory requirements of the Commonwealth Fraud Control Framework.

We collaborated with other Australian Government departments to identify emerging risks arising from COVID-19 and how best to respond to them. Regular communication with staff and stakeholders helped coordinate our activities to prevent fraud.

Values, conduct and ethics The highest standards of conduct, integrity and professionalism are fundamental to our work in Australia and overseas. In 2019-20 we promoted the APS Values and Employment Principles through e-learning, face-to-face training and pre-posting conduct and ethics briefings. We provided advice on ethics and investigated allegations of fraud and misconduct involving staff, including locally engaged staff overseas. The department’s Conduct and Ethics Manual contains our policies and procedures and is available on our external website. Consistent with the Public Interest Disclosure Act 2013, the department helps staff to report wrongdoing in the APS.

During the year, 55 allegations of misconduct were reported. Most of these were unsubstantiated or resolved through managerial action. We formally investigated nine of these allegations and four were determined to be breaches. Sanctions applied included termination of employment, reduction in classification and reprimand. We ceased two investigations because the employees resigned, and in another case the employee resigned before we applied a sanction. The remaining two cases were determined not to be breaches.

The department pursues a One Approach, Zero Tolerance policy towards bullying, harassment (including sexual harassment) and discrimination. We provide mandatory e-learning to all staff in Australia and overseas, and access to support options, including a global network of more than 200 diversity and anti-harassment officers. The department’s anti-bullying, harassment and discrimination policy clearly sets out the standard of behaviour expected of our employees and contracted partners, as well as the obligations for reporting when these expectations are not met. We have a single telephone number for reporting or seeking assistance on any inappropriate behaviour, sexual harassment or sexual exploitation, or abuse of children and vulnerable adults. Our external website provides easy and quick access to information and support.

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MANAGEMENT AND ACCOUNTABILITY

DFAT ANNUAL REPORT 2019-20

External accountability

Courts and tribunals We managed a range of legal matters before courts and tribunals during the reporting period.

The department was a defendant in three matters before the Federal Court of Australia, which commenced during 2019-20. One of these matters related to employee entitlements and another related to consular assistance provided by the department. Both are ongoing. A passport-related matter was concluded. Three matters from the previous financial year relating to passport and employment issues were finalised.

The department appeared as an interested party in one coronial inquest which was finalised by the Coroner’s Court of Queensland.

The department continued to defend applications before the Administrative Appeals Tribunal (AAT) concerning passport decisions. In 2019-20 six new matters in relation to passport decisions were initiated against the department and two were finalised. The department also defended two applications concerning freedom of information decisions, both of which are ongoing. At the end of the financial year, six AAT matters remained active.

We defended a number of matters in foreign courts or tribunals, one of which was finalised and two remained ongoing at the end of the year.

The department complied with discovery, subpoena and other document production obligations in a range of matters. This included a number of matters brought against the Commonwealth and other Australian Government agencies.

The department facilitated via diplomatic channels the service of documents and taking of evidence in private litigation in more than 80 matters brought overseas and in Australia. We also facilitated the service of documents on foreign states in a number of matters under the Foreign States Immunities Act 1985.

FOI and privacy In 2019-20 the department finalised 164 freedom of information (FOI) applications. The Information Commissioner received one privacy complaint about the department. The department has provided submissions to the Information Commissioner in this matter. Detailed information on how the department manages FOI requests can be found on the Office of the Australian Information Commissioner’s website at: https://www.oaic.gov.au/freedom-of-information/guidance-and-advice/

Consistent with requirements of the Freedom of Information Act 1982 (FOI Act), we continued to publish information under the Information Publication Scheme contained in Part II of the FOI Act. The content is available at: https://www.dfat.gov.au/about-us/corporate/freedom-of-information/Pages/ information-publications-scheme

MANAGEMENT AND ACCOUNTABILITY

Reports by the Auditor-General The Auditor-General tabled in parliament the following reports by the Australian National Audit Office (ANAO) related to the department’s operations:

• Report No. 32 of 2019-20: Value for Money in the Delivery of Official Development Assistance through Facility Arrangements.

• Report No. 42 of 2019-20: Fraud Control Arrangements in the Department of Foreign Affairs and Trade.

Details of these reports, including our responses, are available on the ANAO website.

Parliamentary committees of inquiry Information on the department’s engagement with parliamentary committees of inquiry is in appendix 8, page 226.

Commonwealth Ombudsman The Commonwealth Ombudsman commenced six investigations in 2019-20 with respect to the department’s activities. No notices were provided to the department under subsection 12(4) of the Ombudsman Act 1976 and no formal reports were issued.

Australian Human Rights Commission The Australian Human Rights Commission investigated three claims with respect to the department’s activities in 2019-20. Two have been resolved and one remains ongoing.

Compensation for detriment caused by defective administration, acts of grace, ex gratia payments In 2019-20, 18 claims were made under the Scheme for Compensation for Detriment caused by Defective Administration with respect to the department’s activities. The department finalised 14 cases during the same period, including four which had been initiated in the previous financial year.

One application for an act of grace payment received in 2018-19 was finalised during the reporting period.

Managing our financial resources

Assets management Internal allocations for capital investments are set by the department’s executive following assessment of key work units’ planned programs of work. The executive reviewed capital investment throughout the year and reallocated resources as necessary. The finance division supported this through long-term strategic planning of the department’s investments through implementation of a capital management plan. We conduct reviews and impairment testing of asset classes annually to ensure asset values are fairly stated in the end-of-year financial statements, and use this as a basis for forward planning.

Purchasing The department’s purchasing was undertaken in accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Commonwealth Procurement Rules.

122 | | 123

MANAGEMENT AND ACCOUNTABILITY

DFAT ANNUAL REPORT 2019-20

We continued to support the government’s Indigenous supplier diversity strategy, including through our Reconciliation Action Plan, Indigenous Business Charter and Indigenous People’s Strategy.

The department has consistently met its annual targets since the inception of the Indigenous Procurement Policy. In July we won the 2019 Chartered Institute of Procurement and Supply Australasia award for our ongoing commitment to engaging the Indigenous business sector in our international development program.

We encouraged best practice in Indigenous procurement, including by showcasing Indigenous businesses to posts and embedding Indigenous procurement in our policies and practices. We profiled a number of export-ready Indigenous businesses and their details on our website https://dfat.gov.au/ about-us/business-opportunities/Pages/indigenous-business-engagement.aspx

Consultants During 2019-20, six new consultancy contracts were entered into involving total actual expenditure of $176,193 (inclusive of GST). In addition, 13 ongoing consultancy contracts were active during the period, involving total actual expenditure of $672,035 (inclusive of GST).

The department engaged consultants when required in accordance with the PGPA Act and related rules, including the Commonwealth Procurement Rules, and relevant departmental policies. We engaged consultants when required for specialist expertise or independent research, review, assessment or creative solutions to assist decision-making.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.

Table 2 Consultants

Total

No. of new contracts entered into during the period 6

Total actual expenditure during the period on new contracts (inc GST) $176,193

No. of ongoing contracts engaging consultants that were entered into during a 13 previous period

Total actual expenditure during the period on ongoing contracts (inc GST) $672,035

ANAO access clauses The department’s standard contract templates include provisions allowing the ANAO to access a contractor’s premises.

Exempt contracts There were 14 contracts in excess of $10,000 (inclusive of GST), with a value of $19,298,025 exempted from being published in AusTender on the basis that publication would disclose exempt matters under the Freedom of Information Act 1982.

Procurement initiatives to support small business The department supports small business participation in the Commonwealth Government procurement market and we continued to support small business throughout the reporting period. In collaboration with the National Bushfire Recovery Agency, Austrade and local councils, we supported over 60 bushfire-affected small businesses by purchasing products for major overseas promotions. Over 97 per cent of the bushfire recovery funding managed by the department was spent in Australia.

MANAGEMENT AND ACCOUNTABILITY

Small and medium enterprises and small enterprise participation statistics are available on the Department of Finance’s website.

We held our fourth Aid Supplier conference and tradeshow in November to foster communication and understanding of working with the department to deliver the international development program. The event attracted widespread interest from diverse suppliers, and helped participants build networks with government and the private sector.

The department recognises the importance of small businesses being paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Department of Industry, Science, Energy and Resources website: industry.gov.au

Grants Information on grants awarded by the department during 2019-20 is available at www.grants.gov.au

•••••••••••••••••••• ••••••••••••••••••• ••••••••••••••••••• •••••••••••••••••••• ••••••••••• 4

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT

To the Minister for Foreign Affairs

To the Minister for Trade, Tourism and Investment

Opinion

In my opinion, the financial statements of the Department of Foreign Affairs and Trade (the Entity) for the year ended 30 June 2020:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the Entity as at 30 June 2020 and its financial performance and cash flows for the year then ended.

The financial statements of the Entity, which I have audited, comprise the following as at 30 June 2020 and for the year then ended:

• Statement by the Secretary and Chief Finance Officer; • Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Cash Flow Statement; • Administered Schedule of Comprehensive Income; • Administered Schedule of Assets and Liabilities; • Administered Reconciliation Schedule; • Administered Cash Flow Statement; and • Notes to and forming part of the financial statements, comprising a summary of significant accounting

p

olicies and other explanatory information.

Basis for opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Key audit matters

Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.

GPO Box 707 CANBERRA ACT 2601 38 Sydney Avenue FORREST ACT 2603 Phone (02) 6203 7300 Fax (02) 6203 7777

126 | | 127

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Key audit matter

Valuation of overseas properties

Refer to Note 3.2A Land and buildings and Note 7.2A Fair value measurement, valuation techniques and inputs used

As at 30 June 2020, the reported fair value of land was $1,989 million and the carrying value of buildings was $2,835 million (which is carried at fair value except for $1,180 million right-of-use assets carried at cost). Overseas properties represents a significant proportion of the balances. The Entity engaged an independent expert to undertake the valuation.

I focused on this area due to the:

• significant value of the properties;

• variety of valuation methodologies applied; and

• inherent subjectivity applied in the

determination of the fair value of the properties.

Key audit matter

Completeness and accuracy of financial information associated with overseas posts

Refer to Note 2.1A International development assistance

The Entity manages over 120 posts in 83 countries, with financial processes and transactions managed and generated by these posts impacting a large portion of the Entity’s financial statements, including:

• international development assistance ($3,153 million);

• locally engaged staff costs;

• procurement; and

• management of overseas property assets.

I focused on this area due to the:

• devolved nature of these operations, which include varying systems and controls in place to manage financial processing, including the inability to segregate duties;

• the significant value of payments made through the Entity’s aid programs; and

• the significant reliance on third party

arrangements to maintain the Entity’s overseas property assets.

128 |

How the audit addressed the matter

To address this key audit matter, I:

• evaluated the competence, capability and objectivity of the Entity’s valuation expert;

• assessed the appropriateness of methodologies us ed including evaluating the appropriateness of key assumptions applied in the property valuations which included the review of the assessment of movements in the market conditions undertaken by the Entity’s valuation ex

pert; and

• evaluated the relevance, completeness and accuracy of the reports and underlying data used by the Entity’s expert.

How the audit addressed the matter

Management of international development assistance

To address this key audit matter I:

• assessed and tested, on a sample basis, the design and operating effectiveness of the key controls supporting international development assistance relating to the recording, monitoring and approval of funding agreements and expenditure;

• assessed whether the Entity’s aid management system’s information technology general controls:

- interface between the aid management system and financial management information systems; and

- workflow approval process were designed and operating effectively to support the accurate and complete transfer of data.

- examined supporting documentation for a sample of international development assistance payments to assess the accuracy of expenditure amounts including compliance with funding agreements and applicable a

cquittal processes.

Management of overseas posts (excluding aid)

To address this key audit matter I:

• reviewed the results of reviews undertaken by Internal Audit on frameworks and controls in

INDEPENDENT AUDITOR’S REPORT

place at selected overseas posts, and assessed the implications of any findings on the financial statements; and

• undertook testing, on a sample basis, of transactions across various financial statements line items initiated at overseas posts including:

- the commencement and termination of l ocally engaged staff;

- procurement activities at the post; and

- supporting services provided under third party arrangements in relation to the management of overseas property assets.

Accountable Authority’s responsibility for the financial statements

As the Accountable Authority of the Entity, the Secretary is responsible under the Public Governance, Performance and Accountability Act 2013 (the Act) for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under the Act. The Secretary is also responsible for such internal control as the Secretary determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Secretary is responsible for assessing the ability of the Entity to continue as a going concern, taking into account whether the Entity’s operations will cease as a result of an administrative restructure or for any other reason. The Secretary is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

Auditor’s responsibilities for the audit of the financial statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is s

ufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material m

isstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of

the Entity’s internal control; • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates a

nd related disclosures made by the Accountable Authority; • conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or c

onditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related di

sclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My c

onclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern; and

| 129

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

• evaluate the overall presentation, structure and content of the financial statements, including the di sclosures, and whether the financial statements represent the underlying transactions and events in a

m

anner that achieves fair presentation.

I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

From the matters communicated with the Accountable Authority, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Australian National Audit Office

Mark Vial Senior Director

Delegate of the Auditor-General

Canberra

3 September 2020

FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade STATEMENT BY THE SECRETARY AND CHIEF FINANCE OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2020 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

The following exemptions to the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) are published on the Department of Finance website and have been applied to the Department of Foreign Affairs and Trade’s (DFAT) financial statements: a) Subsections 37(a) and 43(2)(b) to require net recording of receipts on behalf of other entities as per section 74 of the PGPA

Act.

b) Subsection 43(3)(a) to require net recording of cash payments on behalf of other entities made from appropriations. c) Section 47 to not require separate disclosure of money paid on behalf of other entities.

In our opinion, at the date of this statement, there are reasonable grounds to believe that DFAT will be able to pay its debts as and when they fall due.

Signed.................................................... Signed..................................................

Frances Adamson Murali Venugopal

Secretary Chief Finance Officer

September 2020 September 2020

130 | | 131

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2020

NET COST OF SERVICES Expenses Employee benefits Suppliers

Depreciation and amortisation Impairment loss on financial instruments Write-down and impairment of other assets Grants and other contributions Finance costs Losses from asset sales Foreign exchange losses Other expenses

Notes

1.1A 1.1B 3.2A 1.1C 1.1D

1.1E

1.1F

Original

2019 Budget 2020 $'000 $'000 $'000

853,458 808,342 888,534 727,856 730,435 558,427 195,539 185,883 353,283 9 - 263

5,100 - 4,284 11,197 - 9,799 383 - 16,247 - 1,180 -

- - 9,462 3,903 - - 1,797,445 1,725,840 1,840,299 Total expenses

Own-source income Own-source revenue Revenue from contracts with customers Rental income

Other revenue

1.2A 102,603 111,429 144,060

1.2B 49,848 35,889 -

1.2C 6,550 9,414 11,258

Total own-source revenue 159,001 156,732 155,318

Gains Gains from sale of assets Other gains Foreign exchange gains

Total gains Total own-source income Net cost of services

1.2D

12,500 325 -

12,825 171,826 (1,668,473)

303 2,543 5,143 7,989 164,721 (1,632,724)

-

674 -

674

155,992 (1,569,848)

Revenue from Government - departmental appropriations

Deficit from continuing operations

1,473,158 (195,315)

1,439,258 (193,466)

1,442,165 (127,683)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation surplus

Total other comprehensive income

131,309 131,309

220,517 220,517

-

-

Total comprehensive (loss) / income (64,006) 27,051 (127,683)

The above statement should be read in conjunction with the accompanying notes.

132 |

Department of Foreign Affairs and Trade STATEMENT OF FINANCIAL POSITION as at 30 June 2020

ASSETS Financial assets Cash and cash equivalents

FINANCIAL STATEMENTS

Original

2019 Budget 2020 $'000 $'000 Notes $'000

430,643 256,798 3.1A 428,027 504,542 503,574 Trade and other receivables 3.1B 391,844

935,185 760,372 819,871 Total financial assets

Non-financial assets Land Buildings Plant and equipment Computer software Inventories Assets held for sale

3.2A 1,989,064 1,973,538 1,769,952

3.2A 2,834,777 1,518,846 1,593,348

3.2A 278,516 304,239 375,322

3.2A 145,689 124,714 130,232

3.2B 42,430 40,228 46,383

12,428 19,618 -

Prepayments 69,305 62,218 68,023

Total non-financial assets 5,372,209 4,043,401 3,983,260

Total assets 6,192,080 4,978,586 4,743,632

LIABILITIES Payables Suppliers 3.3A 89,843 128,841 110,302

Other payables 3.3B 62,443 59,747 58,208

Total payables 152,286 188,588 168,510

Interest bearing liabilities Leases 3.4A 1,166,047 - -

Total interest bearing liabilities 1,166,047 - -

Provisions Employee provisions 6.1A 278,741 274,081 231,444

Other provisions 3.5A 29,528 25,385 18,038

Total provisions 308,269 299,466 249,482

Total liabilities 1,626,602 488,054 417,992

Net assets 4,565,478 4,490,532 4,325,640

EQUITY Contributed equity 2,817,056 2,713,340 2,886,734

Asset revaluation reserve 2,087,655 1,956,346 1,735,829

Accumulated deficit (339,233) (179,154) (296,923)

Total equity 4,565,478 4,490,532 4,325,640

The above statement should be read in conjunction with the accompanying notes.

| 133

5

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2020

The above statement should be read in conjunction with the accompanying notes.

6

Balance carried forward from previous period

(179,154) 14,312 (158,617) 1,956,346 1,735,829 1,735,829 2,713,340 2,618,447 2,782,711 4,490,532 4,368,588 4,359,923

Adjustment on initial application of AASB 16

35,236

- -

-

- -

-

- - 35,236 - -

Adjusted opening balance

(143,918)

14,312

(158,617)

1,956,346

1,735,829

1,735,829

2,713,340

2,618,447

2,782,711

4,525,768

4,368,588

4,359,923

Comprehensive income Revaluation adjustment

-

-

132,075

225,846

-

-

-

-

132,075

225,846

-

Makegood revaluation adjustment

-

-

(766)

(5,329)

-

-

-

-

(766)

(5,329)

-

(Deficit) for the period

(195,315)

(193,466)

(127,683)

-

-

-

-

-

-

(195,315)

(193,466)

(127,683)

Total comprehensive income

(195,315)

(193,466)

(127,683)

131,309

220,517

-

-

-

-

(64,006)

27,051

(127,683)

Transactions with owners Distribution to owners Returns on / of capital: Dividends

-

-

-

-

-

-

-

(7,200)

-

-

(7,200)

-

Departmental equity returns

-

-

-

-

-

-

(59,155)

-

-

(59,155)

-

Contributions by owners Equity injection - Appropriations

-

-

-

-

-

-

43,546

101,121

43,546

43,546

101,121

43,546

Departmental capital budget

-

-

-

-

-

-

60,170

60,127

60,477

60,170

60,127

60,477

Other

-

(10,623)

-

-

-

-

-

-

-

-

(10,623)

Total transactions with owners

-

-

(10,623)

-

-

-

103,716

94,893

104,023

103,716

94,893

93,400

Closing balance as at 30 June

(339,233)

(179,154)

(296,923)

2,087,655

1,956,346

1,735,829

2,817,056

2,713,340

2,886,734

4,565,478

4,490,532

4,325,640

Accounting Policy Equity Injections Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Departmental Equity Returns Lapsed appropriations are recognised as departmental equity returns.

Departmental Cap

ital Budget

2019-20 includes nil (2019: $9.638m) withheld under section 51.

Dividends 2018-19 included a transfer of $7.2m from the Overseas Property Office special account to the consolidated revenue fund. This was accounted for against retained earnings in 2018-19 in error. In 2019-

20 the prior year comparative has

been corrected and accounted for against contributed equity.

RETAINED EARNINGS

ASSET REVALUATION RESERVE

CONTRIBUTED EQUITY

TOTAL EQUITY

Original

Original

Original

Original

2020

2019

Budget

2020

2019

Budget

2020

2019

Budget

2020

2019

Budget

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Opening balance

Department of Foreign Affairs and Trade CASH FLOW STATEMENT for the period ended 30 June 2020

Original

2020 2019 Budget

Notes $'000 $'000 $'000

OPERATING ACTIVITIES Cash received Appropriations 1,710,617 1,595,586 1,435,414

Sale of goods and rendering of services 131,386 135,956 154,143

GST received 43,224 37,901 41,098

Other 6,116 8,320 11,258

Total cash received 1,891,343 1,777,763 1,641,913

Cash used Employees 854,720 825,095 806,131

Suppliers 681,389 723,143 777,582

Interest payments on lease liabilities 15,966 - -

Section 74 receipts transferred to OPA 129,978 114,931 10,623

Other 9,513 15,971 -

Total cash used 1,691,566 1,679,140 1,594,336

Net cash from operating activities 199,777 98,623 47,577

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 32,715 864 11,803

Total cash received 32,715 864 11,803

Cash used Purchase of land and buildings 99,763 89,868 189,226

Purchase of plant and equipment 64,210 55,498 57,108

Purchase and development of computer software 46,913 31,491 14,500

Total cash used 210,886 176,857 260,834

Net cash used by investing activities (178,171) (175,993) (249,031)

FINANCING ACTIVITIES Cash received Contributed equity 136,810 104,127 109,943

Total cash received 136,810 104,127 109,943

Cash used Principal payments of lease liabilities 151,570 - -

Dividends paid - 7,200 -

Total cash used 151,570 7,200 -

Net cash (used by) / from financing activities (14,760) 96,927 109,943

Net increase / (decrease) in cash held 6,846 19,557 (91,511)

Cash and cash equivalents at the beginning of the reporting period 430,643 405,943 348,309

Effect of exchange rate movements on cash and cash equivalents at the beginning of the reporting period (9,462) 5,143 -

430,643 256,798 Cash and cash equivalents at the end of the reporting period 3.1A 428,027

The above statement should be read in conjunction with the accompanying notes.

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FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

I

I

I

I

I

I

I

I

I

I I

I

I

I

FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the period ended 30 June 2020

Department of Foreign Affairs and Trade ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES as at 30 June 2020

Original

2020 2019 Budget

Notes $'000 $'000 $'000

NET COST OF SERVICES

Expenses International development assistance 2.1A 3,153,451 3,205,464 3,151,642

Multilateral replenishments and other loans 2.1B 589,818 254,833 556,733

Other grants and contributions 2.1C 507,919 454,965 588,350

Export Finance Australia (EFA) 3,677 1,365 1,300

Impairment loss on financial instruments 2.1D 427 242 -

Other expenses 2.1E 8,932 10,617 3,882

Payments to corporate Commonwealth entities - Tourism Australia 139,534 135,141 135,618

Depreciation and amortisation 4.2A 914 847 500

Total expenses 4,404,672 4,063,474 4,438,025

Income Fees and charges 2.2A 464,488 559,992 569,712

Loan Interest 2.2B 12,999 12,697 12,999

EFA National Interest Account (NIA) 2.2C 35,882 35,513 31,774

EFA dividend and competitive neutrality 2.2D 27,359 15,023 17,647

Return of prior year administered expenses 2.2E 37,216 19,259 34,559

Other revenue and gains 2.2F 5,782 4,605 255

Total income 583,726 647,089 666,946

Net cost of services (3,820,946) (3,416,385) (3,771,079)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Remeasurements of defined benefit plans (6,696) (5,309) -

Items subject to subsequent reclassification to net cost of services Remeasurements of multilateral subscriptions 108,300 150,987 -

Movement in the carrying amount of investments 39,001 95,127 -

Total other comprehensive income 140,605 240,805 -

Total comprehensive loss (3,680,341) (3,175,580) (3,771,079)

Original

2020 2019 Budget

Notes $'000 $'000 $'000

ASSETS Financial assets Cash and cash equivalents 4.1A 23,138 41,796 27,666

Receivables and loans 4.1B 204,405 190,146 37,300

Investments 4.1C 3,155,707 3,006,238 2,958,500

Total financial assets 3,383,250 3,238,180 3,023,466

Non-financial assets Plant and equipment 4.2A - - 19

Computer software internally developed 4.2A 2,230 2,675 3,078

Prepayments - 181 64

Total non-financial assets 2,230 2,856 3,161

Total assets administered on behalf of Government 3,385,480 3,241,036 3,026,627

LIABILITIES Payables Grants 4.3A 1,058,130 930,179 1,604,677

Other payables 4.3B 808,713 631,120 229,957

Total payables 1,866,843 1,561,299 1,834,634

Provisions Employee provisions 6.1B 93,714 86,943 79,611

Total provisions 93,714 86,943 79,611

Total liabilities administered on behalf of Government

1,960,557 1,648,242 1,914,245

Net assets 1,424,923 1,592,794 1,112,382

The above statement should be read in conjunction with the accompanying notes. The above statement should be read in conjunction with the accompanying notes.

8 9

136 | | 137

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade Department of Foreign Affairs and Trade

ADMINISTERED RECONCILIATION SCHEDULE ADMINISTERED CASH FLOW STATEMENT

as at 30 June 2020 as at 30 June 2020

2020 2019

$'000 $'000

Opening assets less liabilities as at 1 July 1,592,794 1,004,360

Net (cost of) / contribution by services Income 583,726 647,089

Expenses Payments to entities other than corporate Commonwealth entities (4,265,138) (3,928,333)

Payments to corporate Commonwealth entities - Tourism Australia (139,534) (135,141)

Other comprehensive income Movement in the carrying amount of investments 39,001 95,127

Movement in the carrying amount of multilateral subscriptions 108,300 150,987

Actuarial (losses) / gains on defined benefit plans (6,696) (5,309)

Transfers (to) / from the Australian Government Appropriation transfers from OPA Annual appropriations Payments to entities other than corporate Commonwealth entities 4,095,958 4,376,986

Payments to corporate Commonwealth entities - Tourism Australia 139,534 135,141

Special accounts Payments to entities other than corporate Commonwealth entities 39,468 24,677

Special appropriations (unlimited) Payments to entities other than corporate Commonwealth entities 1,861 1,054

Appropriation transfers to OPA Transfers to OPA (764,351) (773,844)

Closing assets less liabilities as at 30 June 1,424,923 1,592,794

Accounting Policy

Administered cash transfers to and from the Official Public Account

Revenue collected by DFAT on behalf of the Government is 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 the Government. These transfers to and from the OPA are adjustments to the administered cash held by DFAT on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.

Payments to corporate Commonwealth entities

Payments to corporate Commonwealth entities from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The appropriation to DFAT is disclosed in Note 5.1A: Annual Appropriations (‘Recoverable GST exclusive’).

2020 2019

Notes $'000 $'000

OPERATING ACTIVITIES Cash received Fees and charges 453,962 561,832

GST received 118,738 137,915

Return of prior year administered expenses 37,216 19,259

EFA dividend 13,425 6,941

EFA competitive neutrality 13,934 8,082

EFA - NIA 34,576 32,422

Other 1,037 3,431

Total cash received 672,888 769,882

Cash used International development assistance 3,391,592 3,755,726

Other contributions 507,918 454,965

Payments to corporate Commonwealth entities - Tourism Australia 139,534 135,141

Other 5,274 3,641

Total cash used 4,044,318 4,349,473

Net cash (used by) operating activities (3,371,430) (3,579,591)

INVESTING ACTIVITIES Cash received Proceeds from concessional financial instruments 9,751 9,751

Total cash received 9,751 9,751

Cash used Purchase of intangibles 469 457

Purchase of concessional financial instruments 168,980 154,513

Total cash used 169,449 154,970

Net cash (used by) investing activities (159,698) (145,219)

Net (decrease) in cash held (3,531,128) (3,724,810)

Cash and cash equivalents at the beginning of the reporting period 41,796 2,592

Cash from Official Public Account Appropriations 4,237,353 4,513,181

Special accounts 39,468 24,677

Total cash from official public account 4,276,821 4,537,858

Cash to Official Public Account Appropriations (764,351) (773,844)

Total cash to official public account (764,351) (773,844)

Cash and cash equivalents at the end of the reporting period 4.1A 23,138 41,796

The above statement should be read in conjunction with the accompanying notes. The above statement should be read in conjunction with the accompanying notes.

10 11

138 | | 139

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Overview Objectives of the Department of Foreign Affairs and Trade

The Department of Foreign Affairs and Trade (DFAT) is an Australian Government controlled entity. It is a not-for-profit, non-corporate Commonwealth entity. The continued existence of DFAT in its present form and with its present outcomes and programs is dependent on Government policy and on continuing funding by Parliament for DFAT's administration and programs.

DFAT’s role is to advance the interests of Australia and Australians internationally, providing foreign, trade and investment, development and international security policy advice to the Government. DFAT works with other Government agencies to ensure that Australia’s pursuit of its global, regional and bilateral interests is coordinated effectively. DFAT’s role involves working to strengthen Australia’s security, enhancing Australia’s prosperity, delivering an effective and high quality aid program and helping Australian travellers and Australians overseas. The DFAT Portfolio Budget Statements are structured to meet three outcomes:

 Outcome 1: The advancement of Australia's international strategic, security and economic interests including through bilateral, regional and multilateral engagement on Australian Government foreign, trade and international development policy priorities,

 Outcome 2: The protection and welfare of Australians abroad and access to secure international travel documentation through timely and responsive travel advice and consular and passport services in Australia and overseas, and

 Outcome 3: A secure Australian Government presence overseas through the provision of security services and information and communications technology infrastructure, and the management of the Commonwealth's overseas property estate.

DFAT's activities that contribute towards these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by DFAT in its own right. Administered activities involve the management or oversight by DFAT, on behalf of the Government, of items controlled or incurred by the Government.

DFAT conducts the following administered activities on behalf of the Government:

 Official development assistance,  Consular and passport services,  Public information services and public diplomacy,  International climate change engagement,  The New Colombo Plan,  Programs to promote Australia’s international tourism interests, and  Payments to international organisations.

Official development assistance administered by DFAT includes international development assistance and multilateral replenishments. Appropriation funding is allocated through country, regional and global programs, and includes payments to international organisations, emergency and humanitarian programs, contributions to non-Government organisations (NGOs) and volunteer programs. The aid program promotes Australia’s national interest by contributing to sustainable economic growth and poverty reduction, particularly in the Indo-Pacific.

Basis of Preparation

The financial statements and notes are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements and notes have been prepared in accordance with:

a) the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR), and

b) Australian Accounting Standards and Interpretations Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

DFAT has applied the Reduced Disclosure Requirements issued by the AASB with the exception of disclosures prepared under the following accounting standards, as required under subsection 18(3) of the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR):

 AASB 7 Financial Instruments: Disclosure (administered only),  AASB 12 Disclosure of Interests in Other Entities (administered only),  AASB 13 Fair Value Measurement (administered and departmental), and  AASB 116 Property, Plant and Equipment (administered and departmental).

The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current at the end of the reporting period. Exchange gains and losses are reported in the Statement of Comprehensive Income. DFAT does not enter into hedging arrangements for its foreign currency transactions and all foreign exchange gains or losses are considered non-speculative in nature.

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes. Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Taxation

DFAT is exempt from all forms of Australian taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Overseas, DFAT may be subject to Value Added Tax (VAT) or similar on the purchase of goods and services. Revenues, expenses, assets and liabilities are recognised net of GST / VAT except:

a) where the amount of GST or VAT incurred is not recoverable from the Australian Taxation Office or overseas taxation authority, and

b) for receivables and payables.

Events After the Reporting Period

There have been no events after 30 June 2020 which will affect the financial position of DFAT materially at the reporting date.

New Accounting Standards

No accounting standard has been adopted earlier than the application date as stated in the standard.

Standard / Interpretation

Nature of change in accounting policy, transitional provisions1, and adjustment to financial statements

AASB 16 became effective on 1 July 2019.

AASB 16 Leases

This new standard has replaced AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease, Interpretation 115 Operating Leases—Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

AASB 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value.

| 141 140 |

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Standard / Interpretation

Nature of change in accounting policy, transitional provisions1, and adjustment to financial statements (continued)

AASB 16 Leases (continued)

AASB 16 substantially carries forward the lessor accounting in AASB 117, with the distinction between operating leases and finance leases being retained. The details of changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

AASB 15, AASB 2016-8 and AASB 1058 became effective 1 July 2019.

AASB 15 Revenue from Contracts with Customers

AASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities

AASB 1058 Income of Not-For-Profit Entities

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and Interpretation 13 Customer Loyalty Programmes. The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

AASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the not-for-profit (NFP) provisions of AASB 1004 Contributions and applies to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable the entity to further its objectives, and where volunteer services are received.

The details of the changes in accounting policies are disclosed in the relevant notes to the financial statements.

1. Where transitional provisions apply, all changes in accounting policy are made in accordance with their respective transitional provisions

Application of AASB 16 Leases

DFAT adopted AASB 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under AASB 117 and related interpretations.

DFAT elected to apply the practical expedient to not reassess whether a contract is, or contains a lease at the date of initial application. Contracts entered into before the transition date that were not identified as leases under AASB 117 were not reassessed. The definition of a lease under AASB 16 was applied only to contracts entered into or changed on or after 1 July 2019.

AASB 16 provides for certain optional practical expedients, including those related to the initial adoption of the standard. DFAT applied the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:  Exclude initial direct costs from the measurement of right-of-use assets at the date of initial application for leases where

the right-of-use asset was determined as if AASB 16 had been applied since the commencement date;  Measured the right-of-use asset at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the specific lease; and,  Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term

remaining as of the date of initial application.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

As a lessee, DFAT previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under AASB 16, DFAT recognises right-of-use assets and lease liabilities for most leases. However, DFAT has elected not to recognise right-of-use assets and lease liabilities for low value assets (less than $10,000) based on the value of the underlying asset when new or for short-term leases with a lease term of 12 months or less.

On adoption of AASB 16, DFAT recognised right-of-use assets and lease liabilities in relation to leases of storage space, vehicles and property leases, which had previously been classified as operating leases.

The lease liabilities were measured at the present value of the remaining lease payments, discounted using the DFAT’s incremental borrowing rate as at 1 July 2019. DFAT’s incremental borrowing rate, which is based on zero coupon yields, is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 1.3%.

Impact on transition of AASB 16

On transition to AASB 16, DFAT recognised additional right-of-use assets and additional lease liabilities, recognising the difference in retained earnings. The impact on transition is summarised below:

Departmental 1 July 2019

Non-financial assets - buildings (right-of-use assets) 1,259,312,265

Non-financial assets - plant and equipment (right-of-use assets) 3,791,896

Other non-financial assets - property prepayments (37,133,901)

Interest bearing liabilities - leases liabilities (1,225,970,260)

Payables - suppliers - operating lease rentals (26,338,977)

Payables - other payables - lease incentives (8,896,798)

Retained earnings 35,235,775

The following table reconciles the Departmental minimum lease commitments disclosed in the entity's 30 June 2019 annual financial statements to the amount of lease liabilities recognised on 1 July 2019: 1 July 2019 Minimum operating lease commitment at 30 June 2019 815,685,493

Less: recoverable taxes included in minimum operating lease commitment at 30 June 2019 (45,230,998) Less: leases commencing after 30 June 2019 included in minimum operating lease commitment (26,595,359) at 30 June 2019 Less: short-term leases not recognised in lease liability under AASB 16 (1,772,253)

Plus: effect of extension options reasonably certain to be exercised and other differences 626,525,701 Undiscounted lease payments 1,368,612,584

Less: effect of discounting using the incremental borrowing rate as at the date of initial application (142,642,324) Lease liabilities recognised at 1 July 2019 1,225,970,260

Significant Accounting Judgements and Estimates

In the process of applying the accounting policies detailed in these statements, DFAT has made the following estimates and judgements that have a significant impact on the amounts recorded in the departmental financial statements:  The fair value of land and buildings has been taken to be the market value of similar properties as determined by an independent valuer. In some instances, DFAT’s buildings are purpose built and may in fact realise more or less in the

market.  The fair value of plant and equipment has been taken to be the market value of similar assets or depreciated replacement value as determined by an independent valuer.  The employee provisions have been determined by reference to advice from the Australian Government Actuary.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.

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FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Administered

In the process of applying the accounting policies detailed in these statements, DFAT has made the following estimates and judgements that have a significant impact on the amounts recorded in the Administered financial statements:

 The fair value of the administered financial instruments in 2019-20 has been determined using professional valuation advice. The fair value of the financial instruments reported in future periods will be affected by variables such as discount rates, exchange rates and possible impairment.  A number of debts recorded on the EFA NIA are impaired, with the impairment assessment based on judgement of the

risks to repayment of the debts. For some debts the judgement is discussed and agreed between DFAT and EFA, and is informed by assessment of the economic and political environment and previous repayment history.  The fair value of DFAT’s defined benefit obligations have been determined on a basis consistent with previous years using professional actuarial calculations that require assumptions about future events. The fair value of the defined

benefit schemes reported in future periods will be affected by variables such as discount rates, exchange rates, salary fluctuations and inflation rates.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.

Changes in accounting policy Certain comparative amounts have been reclassified or adjusted to conform with current financial reporting guidelines. These are reflected as minor changes in the comparative figures in the statement of changes in equity and notes 1.2A: Revenue from contracts with customers, 3.1B: Trade and other receivables and 7.3A: Categories of financial instruments.

Changes in accounting policy Certain comparative amounts have been reclassified or adjusted to conform with current financial reporting guidelines. These are reflected as minor changes in the comparative figures in the notes 2.1A: International development assistance, 4.1B: Trade and other receivables, and 6.1B: Employee provisions.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

1. Departmental Financial Performance 1.1 Expenses

2020 2019

$'000 $'000

Note 1.1A: Employee benefits Wages and salaries 594,935 561,590

Superannuation Defined contribution plans 44,234 46,161

Defined benefit plans 49,181 42,194

Leave and other entitlements 71,692 74,837

Fringe benefits expense 117,163 118,511

Separations and redundancies 6,713 6,243

Other employee expenses 4,616 3,922

Total employee benefits 888,534 853,458

Accounting policy

Accounting policies for employee benefits are included in Section 6 People and Relationships.

Note 1.1B: Suppliers Goods and services supplied or rendered Passport expenses 106,317 125,804

Property related expenses (excluding rent) 99,317 105,921

Security expenses 86,965 80,822

Information and communication technology 106,616 99,406

Travel expenses 47,528 54,227

Staff related expenses 35,560 40,785

Office expenses 19,487 20,926

Legal and other professional services 12,537 12,735

Contractors 10,516 9,855

Consultants 4,851 5,570

Remuneration of auditors 611 630

Other expenses 21,045 17,527

Total goods and services supplied or rendered 551,350 574,208

Goods supplied 73,788 73,346

Services rendered 477,562 500,862

Total goods and services supplied or rendered 551,350 574,208

Other suppliers Operating lease rentals1 - 150,217

Short-term leases 3,281 -

Workers compensation expenses 3,796 3,431

Total other suppliers 7,077 153,648

727,856 Total suppliers 558,427

1. DFAT has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117. For further details on the adjustments to DFAT’s accounts upon transition to AASB 16 refer to the disclosures under New Accounting Standards within the Overview section of these statements.

DFAT has short-term lease commitments of $0.209m as at 30 June 2020.

The above lease disclosures should be read in conjunction with the accompanying notes 1.1E, 1.2B, 3.2A and 3.4A.

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FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2020 2019

$'000 $'000

Note 1.1C: Impairment loss on financial instruments Write-down of financial assets 68 21

Movement in impairment loss allowance 195 (12)

9 Total impairment loss on financial instruments 263

Note 1.1D: Write-down and impairment of other assets Write-down of leasehold improvements 1,631 695

Write-down of plant and equipment 1,727 2,031

Write-down of computer software 170 555

Impairment of non-current assets held for sale and divestment 756 1,676

Write-down of assets under construction - 5

Write-off of inventories - 138

Total write-down and impairment of other assets 4,284 5,100

Accounting policy

Impairment Divestment

Some selling costs relate to divestments that have not yet settled, and are not considered held for sale per the AASB criteria. These assets may not be in use but are not held for sale either.

Note 1.1E: Finance costs Unwinding of discount 279 382

Interest on lease liabilities 15,966 -

Other interest payments 2 1

383 Total finance costs 16,247

Note 1.1F: Other expenses Act of grace payments - 3,903

Total other expenses - 3,903

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

1.2 Own-source revenue and gains

2020 2019

$'000 $'000

Note 1.2A: Revenue from contracts with customers Sale of goods 290 585

Rendering of services 102,313 110,844

Total revenue from contracts with customers 102,603 111,429

Disaggregation of revenue from contracts with customers

DFAT generates revenue from agreements with customers. A significant portion of this revenue is derived from DFAT providing services for other Commonwealth agencies overseas $100.567m (2019: $108.708m). The remainder of the revenue are contributions by employees in relation to expenses that are incurred by DFAT $1.746m (2019: $2.136m).

DFAT can categorise services provided overseas into accommodation and general support $75.511m (2019: $85.223m) and information technology support $25.056m (2019: $23.485m). The risks and uncertainties in relation to timing of revenue and associate cash flows for both services are identical. Per unit costs are determined at the beginning of the revenue period. Revenue is recognised from customers in arrears based on the agreed unit values. At the end of the revenue period the unit costs are reviewed to determine appropriateness in terms of cost that have been incurred. Revenue recognised for each customer is then adjusted to reflect the actual costs that have been incurred in determining the unit value.

Accounting policy

Revenue from the sale of goods is recognised when control has been transferred to the buyer.

DFAT will classify a service based agreement as within the scope of AASB 15 and recognise revenue in relation to services rendered from that agreement when all the following conditions are satisfied:  DFAT has an agreement that has been approved by all parties to the agreement;  The obligations of each party under the agreement can be identified;

 A pattern of transfer of services can be identified;  The agreement has commercial substance;  It is highly probable that DFAT will collect the payments.

Service revenue is predominately generated from providing services to other Commonwealth agencies overseas. The agreements with customers typically involve multiple services. The services all relate to specific performance obligations, and as such the services are bundled for the purpose of revenue recognition. Revenue is recognised on a per unit basis and is not considered variable revenue. The transaction price is the total amount of consideration to which the department expects to be entitled in exchange for transferring the promised services to a customer. The transaction price is based on a service unit price for recovering costs and is initially determined applying judgement. The unit price is reviewed at the end of the revenue period to adjust revenues recognised

for the actual unit cost. This process can result in the recognition of a customer contract liability or receivable.

The benefits to the customers under the agreements are provided and consumed simultaneously. The likelihood of re-performance of any aspects of the services are low and, as such, DFAT recognises the services revenue over time with proportionate recognition over the period of the agreement. The services are typically charged in arrears and as such, liabilities are not raised in relation to those obligations.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance amount. Collectability of debts are reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

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FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

I

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2020 2019

$'000 $'000

Note 1.2B: Rental income Operating lease: Lease income 34,105 35,889

Subleasing right-of-use assets1 15,743 -

35,889 Total rental income 49,848

1. DFAT has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

DFAT has in place a number of lease arrangements for operating lease commitments for right-of-use assets and DFAT owned properties. Lease revenue expected to be received is $131.777m (2019: $150.987m).

Maturity analysis of operating lease income receivables: Within 1 year 45,658

One to two years 35,560

Two to three years 24,810

Three to four years 15,187

Four to five years 6,879

More than 5 years 3,683

Total undiscounted lease payments receivable 131,777

The above lease disclosures should be read in conjunction with the accompanying notes 1.1B, 1.1E, 3.2A and 3.4A.

Note 1.2C: Other revenue Foreign tax refunds 4,815 5,767

Sponsorship revenue 890 2,644

Resources received free of charge 619 630

Other revenue 226 373

Total other revenue 6,550 9,414

Accounting policy

Resources received free of charge, which relates to remuneration of auditors, are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Sponsorship revenue is recognised as revenue at the fair value of the sponsorship received or receivable when the probable economic benefits of the transaction will flow to DFAT.

Foreign tax refunds are recognised as revenue at the fair value of the foreign tax refund when the probable economic benefits of the transaction will flow to DFAT.

Note 1.2D: Other gains Gain on restoration obligation 39 1,265

Assets previously expensed 286 1,278

2,543 Total other gains 325

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2. Income and Expenses Administered on Behalf of Government 2.1 Administered Expenses

2020 2019

$'000 $'000

Note 2.1A: International development assistance

Delivery of Australian international development assistance International development assistance - suppliers 3,114,351 3,168,562

Employee benefits supporting delivery 39,100 36,902

Total international development assistance 3,153,451 3,205,464

Accounting Policy Employee benefit expenses relate to both APS and locally engaged staff working on the direct delivery of the aid program.

Note 2.1B: Multilateral replenishments and other loans New multilateral replenishments 230,726 72,506

Loss from measuring multilateral financial liabilities - at fair value through profit or loss 341,228 137,056 Unwinding costs - multilateral grants and contributions 17,865 45,271

254,833 Total multilateral replenishments and other loans 589,818

Accounting Policy Accounting policies for other loans and multilateral replenishments are included in Note 4.1: Administered - Financial Assets and Note 4.3: Administered - Payables.

Note 2.1C: Other grants and contributions Payments to international organisations 384,447 373,118

New Colombo Plan 48,998 49,379

Tourism Australia - Asia marketing fund 14,000 14,000

Tourism Australia - Working holiday makers 2,500 5,000

Tourism Australia - Bushfire response package 41,500 -

Tourism Australia - Implementing Sport 2030 2,000 -

Other 14,474 13,468

454,965 Total other grants and contributions 507,919

Accounting Policy

DFAT administers a number of agreements on behalf of the Australian Government with international organisations. Liabilities are recognised to the extent that: a) the services required to be performed by the recipient have been performed, or b) the eligibility criteria has been satisfied, but payments due have not been made.

Note 2.1D: Impairment loss on financial instruments Write-down and impairment of financial assets 427 242

242 Total impairment loss on financial instruments 427

Note 2.1E: Other expenses Defined benefit pension schemes 7,423 6,691

Passport fee refunds 933 811

Consular services refunds 7 8

Other foreign exchange losses 569 3,107

Total other expenses 8,932 10,617

148 | | 149

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

I

I

I

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade Department of Foreign Affairs and Trade

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2.2 Administered Income

Administered income relates to ordinary activities performed by DFAT on behalf of the Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

2020 2019

$'000 $'000

Note 2.2A: Fees and charges Passport fees 449,328 542,826

Consular fees 14,285 16,302

Nuclear safeguard charges 875 864

Total fees and charges 464,488 559,992

Accounting Policy

Passport and consular income are based on a fee arrangement, collected both domestically and internationally, for the processing of new passport applications, registering lost or stolen passports, issuing emergency passports, and for other travel related documents and notarial endorsements. Fees are determined under the Australian Passports (Application Fees) Act 2005 and the income is recognised on receipt of the fees and all income collected is returned to consolidated revenue. The nuclear safeguard charge income is the Uranium Producers Charge, under the Nuclear Safeguards (Producers of Uranium Ore Concentrates) Act 1993, for each kilogram of uranium ore concentrate produced in Australia with the income recognised on receipt of the charge and is all income returned to consolidated revenue.

Note 2.2B: Loan interest Australia-Indonesia Partnership for Reconstruction and Development (AIPRD) loan interest 12,999 12,697 Total loan interest 12,999 12,697

Accounting Policy

Accounting policies for loans are included in Note 4.1B: Receivables and loans.

Note 2.2C: EFA - NIA NIA premiums 12,951 11,823

NIA repayments of interest subsidies and recoveries 22,931 23,690

Total EFA - NIA 35,882 35,513

Accounting Policy

Accounting policies for EFA are included in Note 4.1B: Receivables and loans. On 1 July 2019, the Export Finance Investment Corporation (Efic) changed it’s trading name to Export Finance Australia (EFA).

2020 2019

$'000 $'000

Note 2.2D: EFA dividend and competitive neutrality EFA dividend 13,425 6,941

Competitive neutrality 13,934 8,082

Total EFA dividend and competitive neutrality 27,359 15,023

Accounting Policy

Under section 61A of the Export Finance and Insurance Corporation Act 1991 (the Efic Act) the Minister may apply to EFA a debt neutrality charge in respect of short-term insurance contracts entered into by EFA. These arrangements ensure EFA does not, through its Commonwealth ownership, have an unfair advantage over private sector financiers.

Note 2.2E: Return of prior year administered expenses Return of prior year administered expenses 37,216 19,259

Total return of prior year administered expenses 37,216 19,259

Accounting Policy

Return of prior year administered expenses relates to funds returned after finalisation or acquittal of an agreement or funding arrangement which were originally paid from prior year appropriations. These funds are treated as administered revenue in the year the funds are returned and are transferred back to consolidated revenue.

Note 2.2F: Other revenue and gains Defined benefit pension schemes - contributions 5,461 4,406

Other interest 311 171

Other revenue 10 28

Total other revenue and gains 5,782 4,605

Accounting Policy

Defined benefit schemes

Accounting policies for the defined benefit pension schemes - contributions are included in Note 7.6: Administered - Defined Benefit Pension Schemes.

150 | | 151

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

3. Departmental Financial Position 3.1 Financial Assets

2020 2019

$'000 $'000

Note 3.1A: Cash and cash equivalents Cash on hand or on deposit 92,667 92,821

Overseas property special account cash held by the entity 1,331 2,293

Overseas property special account cash held in the OPA 334,029 335,529

Total cash and cash equivalents 428,027 430,643

Accounting policy

Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits on hand in bank accounts and special account cash held (excluding trust balances) in the OPA.

Note 3.1B: Trade and other receivables Goods and services receivables Goods and services 96,898 75,450

Other 24,853 17,967

Total goods and services receivables 121,751 93,417

Goods and services are associated with providing services for other Commonwealth agencies and contributions by employees in relation to expenses that are incurred by the Department.

Refer to Note 3.3B: Other payables for more information relating to contract liabilities.

Appropriations receivables Departmental - operating 166,336 273,818

Departmental - capital 83,029 116,122

Total appropriations receivable 249,365 389,940

Other receivables Advances 15,375 15,412

Statutory receivables 4,360 4,208

Cash held by outsiders 168 159

Other 1,119 1,505

Total other receivables 21,022 21,284

Total trade and other receivables (gross) 392,138 504,641

Less impairment loss allowance (294) (99)

504,542 Total trade and other receivables (net) 391,844

Accounting policy

Aside from cash, financial assets are all classified as receivables. Terms for receivables for goods and services are 30 days (2019: 30 days).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 3.1B: Trade and other receivables (continued)

Accounting Policy

Receivables

Receivables have fixed or determinable payments and are not quoted in an active market. Receivables are initially measured at fair value and subsequently at amortised cost using the effective interest method less impairment.

Receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest that are not provided at below-market interest rates are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

Under AASB 9 Financial Instruments, DFAT can classify its financial assets in the following categories: a) financial assets at fair value through profit or loss; b) financial assets at fair value through other comprehensive income; and c) financial assets measured at amortised cost.

The classification depends on both DFAT's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when DFAT becomes a party to the contract and, as a consequence, has a legal right to receive cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date. Therefore, DFAT’s financial assets are measured, and carried, at amortised costs.

Financial Assets at Amortised Cost

Financial assets included in this category need to meet two criteria: 1. the financial asset is held in order to collect the contractual cash flows; and 2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Appropriations

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when DFAT gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Impairment

Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses (ECL). The simplified approach has been adopted in measuring the impairment loss allowance for trade and other receivables at an amount equal to lifetime ECL.

152 | | 153

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 3.2A: Reconciliation of the opening and closing balances of property, plant and equipment and computer software (continued)

Contractual commitments for the acquisition of property, plant, equipment and computer software assets

DFAT has a number of contractual commitments in place for the purchase and / or development of buildings, leasehold improvements and computer software assets, aged as follows:

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

3.2

Non-Financial Assets Note 3.2A: Reconciliation of the o

p enin

g and closin

g

balances of

p ro p

ert y ,

p lant and e

q ui p

ment and com

p uter software

Reconciliation of the o

p enin

g and closin

g balances for 2020

Land

Buildings

Plant and equipment

Computer software

1

Total

$'000

$'000

$'000

$'000

$'000

As at 1 Jul

y 2019

Gross book value

1,973,538

1,666,641

342,898

233,899

4,216,976

Accumulated depreciation, amortisation and impairment

-

(147,795)

(38,659)

(109,185)

(295,639)

Total as at 1 July 2019

1,973,538

1,518,846

304,239

124,714

3,921,337

Recognition of right of use asset

on initial application of AASB 16

-

1,259,312

3,792

-

1,263,104

Adjusted total as at 1 July 2019

1,973,538

2,778,158

308,031

124,714

5,184,441

Additions: Purchase

3

101,955

62,491

25,805

190,254

Internally develope

d

-

880

1,719

21,108

23,707

Ri g ht-of-use assets

-

87,855

134

-

87,989

Revaluations and im

p airments reco

g nised in other com

p rehensive income

25,310

105,852

913

-

132,075

Write-offs and im

p airments on ri

g ht-of-use assets reco

g nised in net cost of services

-

(1,213)

-

-

(1,213)

Assets held for sale

2

(9,787)

(3,228)

-

-

(13,015)

Depreciation and am

ortisation expense

-

(83,888)

(69,662)

(31,647)

(185,197)

Depreciation on right-of-use assets

-

(166,073)

(2,013)

-

(168,086)

Other movements Asset reclassification

-

14,897

(20,776)

5,879

-

Disposals

-

(418)

(2,321)

(170)

(2,909)

Total as at 30 June 2020

1,989,064

2,834,777

278,516

145,689

5,248,046

Net book value as of 30 June 2020 represented by: Gross book value

1,989,064

3,005,010

385,534

281,255

5,660,863

Accumulated depreciation, amortisation and impairment

-

(170,233)

(107,018)

(135,566)

(412,817)

Total

1,989,064

2,834,777

278,516

145,689

5,248,046

Carrying amount of right-of-use assets

-

1,179,881

1,913

-

1,181,794

1. The carrying amount of computer software included $9.393m

purchased software and $136.296m internally generated software.

2. The assets held for sale relates to two properties located in London. The land and buildings for these properties were reval

ued prior to classification as assets held for sale with losses due to estimated disposal

costs of $0.585m included in Note 1.1D Write-down and impairment

of other assets. The properties are expected to be disposed via orderly market transactions within the forward estimates period.

No indicators of impairment were identified for prop

erty, plant and equipment, and computer software.

No land and building assets are to be sold

within the next 12 months, other than those identified as assets held for sale in the Statement of Financial Position.

2020 2019

$’000 $’000

Within 1 year 88,451 39,759

Between 1 to 5 years 85,992 10,803

More than 5 years - -

Total commitments 174,443 50,562

The majority of these commitments relate to contracts in place for the development, refurbishment and upgrade of properties in DFAT’s diplomatic network, and are managed through the Overseas Property Office. Commitments are GST / VAT inclusive where relevant.

154 | | 155

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

28

Note 3.2A: Reconciliation of the o

p enin

g and closin

g

balances of

p ro p

ert y ,

p lant and e

q ui p

ment and com

p uter software (continued)

Reconciliation of the opening an

d closing balances for 2019

Lan

d

Buildin

g s

Plant and e q ui

p ment

Computer software

1

Total

$’000

$’000

$’000

$’000

$’000

As at 1 July 2018 Gross book value

1,821,170

1,638,843

334,015

218,703

4,012,731

Accumulated depreciation, amortisation and impairment

-

(125,743)

(53,120)

(98,569)

(277,432)

Net book value 1 July 2018

1,821,170

1,513,100

280,895

120,134

3,735,299

Additions: Purchase

5,682

86,912

55,498

8,113

156,205

Internall

y develo

p e d

-

-

-

23,378

23,378

Othe

r

-

-

1,278

-

1,278

Revaluations and impairments recogni

sed in other comprehensive income

167,664

45,902

12,280

-

225,846

Assets held for sale

2

(20,806)

(488)

-

-

(21,294)

De p reciation and amortisation ex

p ense

-

(106,460)

(61,301)

(27,778)

(195,539)

Other movements Asset transfers

-

(19,425)

18,003

1,422

-

Disposals

(172)

(695)

(2,414)

(555)

(3,836)

Net book value 30 June 2019

1,973,538

1,518,846

304,239

124,714

3,921,337

Net book value as of 30 June 2019 represented by: Gross book value

1,973,538

1,666,641

342,898

233,899

4,216,976

Accumulated depreciation, amortisation and impairment

-

(147,795)

(38,659)

(109,185)

(295,639)

Total

1,973,538

1,518,846

304,239

124,714

3,921,337

1. The carrying amount of computer software in

cluded $14.756m purchased software and $109.958m internally generated software.

2. The assets held for sale relates to the staff residence in Ma

nilla. The land and building for this property were revalued prior to classification as held for sale with losses due to estimated disposal costs

of $1.676m included in Note 1.1D: Write-down

and impairment of other assets. The property is expected to be disposed via orderly market transactions within the forward estimates period.

No indicators of impairment were identified for prope

rty, plant and equipment, and computer software.

No land and building assets are to be sold within the next 12 mo

nths, other than those identified as assets held for sale in the Statement of Financial Position.

Note 3.2A: Reconciliation of the opening and closing balances of property, plant and equipment and computer software (continued)

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.

Non-financial assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor's accounts immediately prior to the restructuring.

Lease Right of Use (ROU) Assets

Lease ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for as separate asset classes to the corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 DFAT has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any ROU lease asset that shows indicators of impairment and an impairment loss is recognised against any ROU lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition.

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 (2019: $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 initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to 'make good' provisions in property leases taken up by DFAT where there exists an obligation to restore the property to its original condition on termination of the lease. These costs are included in the value of DFAT's leasehold improvements with a corresponding provision for the 'make good' disclosed in Note 3.5A: Other provisions.

Depreciation

Depreciable property, plant and equipment assets are written-down to their estimated residual values over their estimated useful lives to DFAT using, in all cases, the straight-line method of depreciation. Depreciation and amortisation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following typical useful lives:

Asset Class 2020 2019

Buildings Based on remaining useful life Based on remaining useful life

Leasehold Improvements Lesser of lease term or up to 15 years Lesser of lease term or up to 15 years

Plant and Equipment (other than Works 3 to 25 years 3 to 25 years

of Art)

Plant and Equipment (Works of Art) 100 years 100 years

The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

156 | | 157

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

 

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 3.2A: Reconciliation of the opening and closing balances of property, plant and equipment and computer software (continued)

Revaluations

Following initial recognition at cost, property, plant and equipment (excluding ROU assets) are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure the carrying amount of assets did not differ materially from the assets' fair value as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

The Commonwealth owned, non-Defence overseas property estate, comprising both land and buildings, and managed by OPO, is subject to a three-year rolling revaluation cycle in which each property is subject to a full revaluation once in the cycle. A desktop report is required where there has been material movement in the market in excess of 10% over the past 12 months, or when

substantial works have been undertaken on an asset. The top 20 by value property assets receive a desktop update as a minimum each year, with remaining properties subject to a market review.

The other tangible assets are subject to revaluation every three years by class based on the following cycle:

Asset Class to be Revalued

Year 1 Vehicles / Plant and Equipment / Furniture and Fittings / Office Equipment

Year 2 Works of Art / Leasehold Improvement

Year 3 IT Equipment / Special Assets

DFAT has engaged CIVAS to undertake the revaluation of land and buildings and JLL to undertake the revaluation of other tangible 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 in the surplus / deficit. 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 restated to the re-valued amount. Assets held overseas are valued in local currencies and translated into Australian dollars at the exchange rates current at revaluation date.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment existed, the asset's recoverable amount was estimated and an impairment adjustment made if the asset's recoverable amount was less than its carrying amount.

The recoverable amount of any 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 DFAT were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Computer software

DFAT's computer software comprises purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful life of DFAT’s software is 5 to 10 years (2019: 5 to 10 years).

All software assets were assessed for indications of impairment as at 30 June 2020.

158 |

NO

TES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 3.2A: Reconciliation of the opening and closing balances of property, plant and equipment and computer software (continued)

Assets held for sale

Non-current assets are classified as held for sale if the carrying amount is to be recovered principally through a sale transaction rather than through continuing use. On classification as held for sale, the asset is measured at the lower of its carrying amount and fair value less costs to sell. Any write down to fair value less costs to sell is recognised as an impairment loss. Assets which have been classified as held for sale are no longer subject to depreciation or amortisation.

Accounting Judgements and Estimates

Restrictions on Title

Due to the diplomatic nature of the overseas property portfolio, some properties have restrictions on title. Restrictions on title vary depending on local Government rules and regulations, such as long term title that prohibits the Commonwealth of Australia from profiting from sale of land. Whilst the effect of restrictions on some titles can be quantified, there are others that cannot, such as those titles held in limited or unsophisticated markets. As part of the valuation process, consideration is given to the restrictions on title.

Assets Under Construction

Assets under construction (AUC) are 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 tangible AUC older than 12 months prior to the reporting date are externally revalued to fair value. Computer software AUC is reviewed through an internal monthly process. Prior to rollout into service, the accumulated AUC balance is reviewed to ensure accurate capitalisation of built or purchased assets.

2020 2019

$'000 $'000

Note 3.2B: Inventories Inventories held for sale Finished goods 42,430 40,228

Total inventories 42,430 40,228

During 2020, $40.608m of inventory held for sale was recognised as an expense (2019: $48.415m) and nil inventory was written off in the current financial year (2019: $0.138m).

Accounting policy

Inventories held for sale are valued at cost. Costs incurred in bringing each item of inventory to its present location and condition include the cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

| 159

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

3.3 Payables

2020 2019

$'000 $'000

Note 3.3A: Suppliers Trade creditors and accruals 79,152 97,346

Operating lease rentals1 - 26,339

Other 10,691 5,156

Total suppliers 89,843 128,841

Settlement terms for trade creditors were within 20 days (2019: 30 days).

1. DFAT has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Note 3.3B: Other payables Wages and salaries 11,831 7,896

Superannuation 12,238 6,743

Separations and redundancies 121 151

Prepayments received / unearned income 37,657 35,401

Lease incentive1 - 8,897

Other 596 659

Total other payables 62,443 59,747

1. DFAT has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Accounting policy

Payables are classified as other financial liabilities and are recognised and measured at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

The liability for wages and salaries and superannuation recognised as at 30 June 2020 represents outstanding amounts and contributions for the final payroll fortnight of the financial year.

Prepayments received relate to revenue recognised when control has been transferred to the buyer. Prepayments received are $6.6m (2019: $4.4m).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

3.4 Leases

2020 2019

$'000 $'000

Note 3.4A: Leases Lease Liabilities1 Buildings 1,166,047 -

Total leases 1,166,047 -

1. DFAT has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

3.5 Provisions

Note 3.5A: Other provisions Provision for restoration obligations 29,528 25,385

Total other provisions 29,528 25,385

Provision for restoration As at 1 July 2019 25,385 17,810

Additional provisions made 3,052 2,726

Amounts used - (25)

Amounts reversed (39) (1,265)

Revaluation of Provision 766 5,329

Changes in Foreign Exchange Rates 85 428

Unwinding of discount 279 382

Total as at 30 June 2020 29,528 25,385

DFAT currently has 69 agreements (2019: 63) for the leasing of premises where DFAT has raised a provision to restore the premises to their original condition at the conclusion of the lease. The provision reflects the present value of these obligations.

Accounting Policy

For a number of property leases, DFAT has obligations to restore to their original condition or makegood leasehold improvements. These are assessed on a site-by-site basis in line with the relevant clauses of the underlying lease, with fair value calculated based on estimated costs per square metre at the time the makegood obligation falls due, discounted to present value.

DFAT engages an independent expert to assist in the valuation of the estimated costs to makegood. The total provision is reviewed at the end of each reporting period and adjusted to reflect the current best estimate. Where the adjustment relates to the revaluation of the provision and there is sufficient related asset revaluation surplus for the associated leasehold improvement assets, the adjustment is recorded against the asset revaluation reserve. All other adjustments are recognised in the Statement of Comprehensive Income.

160 | | 161

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

4. Assets and Liabilities Administered on Behalf of Government 4.1 Administered Financial Assets

2020 2019

$'000 $'000

Note 4.1A: Cash and cash equivalents Cash on hand or on deposit 5,001 5,012

Special account cash held by the entity - 5

Cash in special accounts held in the OPA 18,137 36,779

Total cash and cash equivalents 23,138 41,796

Accounting policy

The closing balance of cash in special accounts does not include amounts held in trust of $4.981m (2019: $3.439m). See Note 5.2A: Special accounts and Note 5.2B: Assets held in trust for more information.

Note 4.1B: Receivables and loans Receivables Goods and services receivable 28 29

Scholarship debts 1,966 1,748

Statutory receivables 17,291 13,438

Net position of EFA - NIA 12,749 15,120

Other 10,241 1,951

Total receivables 42,275 32,286

Loans Concessional loan receivable - AIPRD 162,337 159,088

Other - travellers emergency loans 2,495 1,194

Total loans 164,832 160,282

Total receivables and loans (gross) 207,107 192,568

Less impairment allowance Advances and loans - travellers emergency loans (712) (651)

Other receivables - external parties (1,990) (1,771)

Total impairment allowance (2,702) (2,422)

Total receivables (net) 204,405 190,146

Receivables and loans (net) are expected to be recovered No more than 12 months 42,039 30,412

More than 12 months 162,366 159,734

Total receivables and loans (net) 204,405 190,146

The impairment loss allowance is based on an assessment of debts outstanding and is predominantly aged more than 90 days.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 4.1B: Receivables and loans (continued)

Reconciliation of the impairment loss allowance

Movements in relation to 2020

Advances and loans

Receivables - external parties Total

$'000 $'000 $'000

Opening balance 651 1,771 2,422

Amounts impaired 61 220 281

Amounts recovered and reversed - (1) (1)

Closing balance 712 1,990 2,702

Movements in relation to 2019

Advances Receivables - and loans external parties Total

$'000 $'000 $'000

Opening balance 729 1,592 2,321

Amounts impaired - 182 182

Amounts recovered and reversed (78) (3) (81)

Closing balance 651 1,771 2,422

Accounting Policy

Receivables and loans

Consistent with DFAT’s outcomes, long-term loans are provided to other entities at concessional rates. On DFAT providing the loan funds, differences between the nominal value of the loan subscription and the fair value of the associated assets are recorded in the administered schedule of comprehensive income as an expense administered on behalf of Government.

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, de-recognition and amortisation are recognised through profit or loss.

EFA - NIA

Part 5 of the Efic Act provides for the Minister for Trade, Tourism and Investment to give an approval or direction to EFA to undertake any transaction that the Minister considers is in the national interest. Such transactions may relate to a class of business which EFA is not authorised to undertake, or involve terms and conditions EFA would not accept in the normal course of business on its Commercial Account. EFA manages these transactions on the NIA.

For these transactions, the credit risk is borne by the Government and the funding risk is borne by EFA on the Commercial Account. Accordingly, premium or other income arising from these transactions are paid by EFA to the Government. EFA recovers from the Government the costs of administration and any losses incurred in respect of such business. Loans on the NIA are funded from the EFA Commercial Account at fair value. The amount disclosed above reflects the Commonwealth’s exposure on business undertaken on the NIA. It reflects the net amount of: a) Assets in the form of loans to and rescheduled credit insurance debts owing by foreign governments, commitment fees on loans

received by EFA but not yet paid to the Commonwealth and bond premiums receivable from exports; and, b) Liabilities relating to the reimbursement to EFA for debt forgiveness on loans, provisions for unearned income on loan premiums, accrued expenses including EFA administration fees and other creditors.

162 | | 163

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

I

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2020 2019

$'000 $'000

Note 4.1C: Investments Non-monetary IDA and ADF Subscriptions - fair value through OCI 2,556,415 2,445,947

EFA - Commercial Account 537,045 539,300

Tourism Australia 62,247 20,991

Total investments 3,155,707 3,006,238

Accounting Policy

Administered investments are measured at their fair value through other comprehensive income as at 30 June 2020. Administered investments in subsidiaries, joint ventures and associates are not consolidated because their consolidation is relevant only at the whole-of-Government level. Financial instruments are recognised on a trade date basis.

Non-monetary International Development Association (IDA) and Asian Development Fund (ADF) Subscriptions

The Australian Government holds these investments long-term for policy reasons, with the issuers being partner foreign governments and multilateral aid organisations including the IDA and the ADF. The investment represents subscription-based membership rights held by the Australian Government in accordance with the articles of association for the IDA and the ADF.

The subscriptions to the IDA and the ADF are classified as equity investments and have been reclassified at fair value through other comprehensive income under AASB 9: Financial Instruments. There is no intention to trade these investments, as there is no observable market value for them. DFAT, based on independent expert valuation advice, values the investment on a discounted cash flow basis. The basis assumes the redemption of the Commonwealth’s pro-rata share of the outstanding loan principal for each fund. The redemption basis is consistent with the withdrawal provisions of the articles of association with the IDA and the ADF.

The discount rate used to equate the future cash flows to a present value reflects the risk adjusted rate of return demanded by a hypothetical investor. The discount rate range uses the “build up method” based on the following components: risk free rate (20 year US Government bond rate), currency risk premium, sovereign risk premium and liquidity risk premium. Changes in fair value are recognised directly in the administered reconciliation schedule. Foreign currency movements and impairment losses and reversals are recorded in the administered schedule of comprehensive income.

EFA - Commercial Account

EFA's principal activity is the provision of competitive finance and insurance services to Australian exporters and Australian companies investing in new projects overseas. The Australian Government guarantees to EFA’s creditors the payment of monies payable by EFA on the Commercial Account. The Minister for Trade, Tourism and Investment has the powers to determine and instruct EFA to pay a dividend in accordance with section 55(1) of the Efic Act. Fair value has been taken to be the Australian Government's proportional interest in the net assets of EFA as at the end of the reporting period.

Tourism Australia

Tourism Australia is the Australian Government agency responsible for attracting international visitors to Australia, both for leisure and business events. DFAT administers Tourism Australia on behalf of the Government for oversight and management purposes and to improve linkages internationally. Funding appropriated to DFAT for Tourism Australia is disclosed as Payments to corporate Commonwealth entities in the Administered Schedule of Comprehensive Income. Fair value has been taken to be the Australian Government's proportional interest in the net assets of Tourism Australia as at the end of the reporting period.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

4.2 Administered Non-Financial Assets

Note 4.2A: Reconciliation of the opening and closing balances for computer software

2020 2019

$’000 $’000

As at 1 July Gross book value 12,675 12,218

Accumulated depreciation, amortisation & impairment (10,000) (9,172)

Net book value 1 July 2,675 3,046

Additions Internally developed 469 457

Depreciation & amortisation expenses (914) (828)

Net book value 30 June 2,230 2,675

Net book value as of 30 June represented by Gross book value 13,144 12,675

Accumulated depreciation, amortisation & impairment (10,914) (10,000)

Net book value 30 June 2,230 2,675

No indicators of impairment were identified for computer software in 2020.

In 2019, plant and equipment was fully depreciated, no further purchases have been made.

Accounting Policy

Accounting policies are included in Note 3.2: Non-Financial Assets.

164 | | 165

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

I

I

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

4.3 Administered Payables

2020 2019

$'000 $'000

Note 4.3A: Grants Multilateral grants payable - fair value through profit or loss 1,058,130 930,179

Total grants 1,058,130 930,179

Note 4.3B: Other payables Multilateral contributions - fair value through profit or loss 664,311 494,521

International development assistance 144,402 136,599

Total other payables 808,713 631,120

Accounting Policy

Financial liabilities are classified either at fair value through profit or loss, or as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘Trade Date’.

Financial liabilities at fair value through profit or loss include multilateral grants payable and multilateral contributions payable. Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss.

Other financial liabilities include trade creditors and accruals and are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

5. Funding 5.1

Appropriations Note 5.1A: Annual a

pp ro

p riations ('recoverable GST exclusive')

Annual A

pp ro

p riations for 2020

Annual

A pp

ro p riation

Section 74 PGPA Act

Total

a

pp ro

p riation

Appropriation applied in

2020 (current and

p rior

y ears)

Variance

1

$'000

$'000

$'000

$'000

$'000

Departmental

2

Ordinary annual services

1,510,017

129,978

1,639,995

(1,710,618)

(70,623)

Capital budget

3

60,170

-

60,170

(60,170)

-

Equity 43,546 - 43,546 (76,640) (33,094)

Total departmental

1,613,733

129,978

1,743,711

(1,847,428)

(103,717)

Administered Ordinary annual services

Capital budget

3

528

-

528

(457)

71

Administered items

4

3,971,208

-

3,971,208

(3,970,677)

531

Payments to corporate Commonwealth entities

139,534

-

139,534

(139,534)

-

Other services Administered assets and liabilities

605,072

-

605,072

-

605,072

Total administered

4,716,342

-

4,716,342

(4,110,668)

605,674

1. Variances in appropriation may result from using prior year

non-lapsed appropriations to fund operating and capital expenditure incurred in the current financial year, making payments for benefits

to be received in future years and where obligations in the

current financial year are not settled by financial year end.

2. In 2019-20, there were adjustments that met the recognition

criteria of a formal addition or reduction in revenue, capital budget or in equity but at law the appropriations had not been amended

before the end of the reporting period as De

partmental appropriations do not lapse at financial year end. The adjustments were: an increase to revenue of $17.661m relating to no-win/no-loss funding

for foreign exchange; a decrease to revenue of $18.897m rela

ting to no-win/no-loss funding for Passport Funding Agreement; and, a decrease to revenue of $12.507m relating to no-win/no-loss

funding for FBT payable on living away from home allowance. The net decrease in appropriation of $13.743m

will be applied against 2019-20 Appropriation Act (No.1).

3. Departmental and Administered Capital Budgets are appropriated through Appropriations

Acts (No. 1, 3 and 5). They form part of the ordinary annual services, and are not separately identified in

the Appropriation Acts. 4. Commonwealth Superannuation Corporation (C

SC) spends money from the Consolidated Revenue Fund on behalf of DFAT in accordance with the Papua New Guinea (Staffing Assistance) Act 1973

. In 2019-20 CSC has drawdown $4.525m from DFAT

's administered appropriation. The Department of Education (DoE) also makes withdrawals on behalf of DFAT under the New Colombo

Plan Agreement. In 2019-20, DoE has drawndow

n $26.908m from DFAT's administered appropriation for this purpose. These amounts are included in the appropriation applied amount above.

166 | | 167

39

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 5.1B: Unspent annual appropriations ('recoverable GST exclusive')

2020 2019

$'000 $'000

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

Note 5.1A: Annual a

pp ro

p riations ('recoverable GST exclusive') (continued)

Annual Appropriations for 2019

Annual

A pp

ro p riation

1

Section 74 PGPA Act

Total

a

pp ro

p riation

Appropriation applied in 2019 (current and prior

y ears

)

Variance

2

$'000

$'000

$'000

$'000

$'000

Departmental Ordinary annual services

1,416,142

114,931

1,531,073

(1,598,742)

(67,669)

Capital budget

3

69,765

-

69,765

(60,127)

9,638

Equity 104,137 - 104,137 (43,998) 60,139

Total de

p artmental 1,590,044 114,931 1,704,975 (1,702,867) 2,108

Administered Ordinary annual services

Capital budget

3

504

-

504

(43)

461

Administered items

4

3,844,822

-

3,844,822

(4,277,711)

(432,889)

Payments to corporate Commonwealth entities

135,141

-

135,141

(135,141)

-

Other services Administered assets and liabilities

-

-

-

-

-

Total administered

3,980,467

-

3,980,467

(4,412,895)

(432,428)

1. Variances in appropriation may result from using prior year

non-lapsed appropriations to fund operating and capital expenditure incurred in the current financial year, making payments for benefits

to be received in future years and where obligations in the

current financial year are not settled by financial year end.

2. In 2018-19, there were adjustments that met the recognition

criteria of a formal addition or reduction in revenue, capital budget or in equity but at law the appropriations had not been amended

before the end of the reporting period as De

partmental appropriations do not lapse at financial year end. The adjustments were: an increase to revenue of $19.831m relating to no-win / no-loss

funding for foreign exchange; a reduction to revenue of $6.686m

relating to no-win / no-loss funding for Passport Funding Agreement; an increase to revenue of $17.968m relating to no-win / no-

loss funding for FBT payable on living away from home allowance;

a reduction to revenue of $7.996m relating to no-win / no-loss for Security Funding Agreements; a reduction in equity of

$3.016m relating to no-win/no-loss for Security Funding Agreements;

and, a section 51 reduction of $9.638m to Department Capital Budgets relating to 2018/19 Additional Estimates measures.

The net increase in appropriation of $23.117m and a net decrease in appropriation of $3.016m will be applied against 2019-

20 Appropriation Act (No. 3) and 2018-19 Appropriation Act (No. 2)

respectively. 3. Departmental and Administered Capital Budgets are appropriated through Appropriations

Acts (No. 1, 3 and 5). They form part of the ordinary annual services, and are not separately identified in

the Appropriation Acts. 4. Commonwealth Superannuation Corporation (C

SC) spends money from the Consolidated Revenue Fund on behalf of DFAT in accordance with the Papua New Guinea (Staffing Assistance) Act 1973

. In 2018-19 CSC drew down $5.142m from DFAT's

administered appropriation. The Department of Education (DoE) also makes withdrawals on behalf of DFAT under the New Colombo Plan

Agreement. In 2018-19 the DoE drew down $46.190m from DFAT's admi

nistered appropriation. These amounts are included in the appropriation applied amount above.

Departmental Appropriation Act (No. 1) 2016-171 - 28,170

Appropriation Act (No. 1) 2017-182 4,384 4,384

Appropriation Act (No. 2) 2017-183 5,829 20,830

Appropriation Act (No. 1) 2018-19 - 250,701

Appropriation Act (No. 1) 2018-19 - DCB4 9,638 9,638

Appropriation Act (No. 2) 2018-195 3,016 22,182

Appropriation Act (No. 4) 2018-19 39,483 81,955

Appropriation Act (No. 1) 2018-19 - Cash at bank and on hand - 92,821

Appropriation Act (No. 1) 2019-206 180,079 -

Appropriation Act (No. 2) 2019-20 25,401 -

Supply Act (No. 2) 2019-20 18,145 -

Appropriation Act (No. 1) 2019-20 - Cash at bank and on hand 92,667 -

Total departmental 378,642 510,681

1. Appropriation Act (No. 1) 2016-17 ($28.170m) was repealed on 1 July 2019. 2. Appropriation Act (No. 1) 2017-18 includes $4.384m withheld under section 51. 3. Appropriation Act (No. 2) 2017-18 includes $5.829m withheld under section 51. 4. Appropriation Act (No. 1) 2018-19 DCB includes $9.638m withheld under section 51. 5. Appropriation Act (No. 2) 2018-19 includes $3.016m withheld under section 51. 6. Appropriation Act (No.1) 2019-20 includes $13.743m which is quarantined.

DFAT has in place a number of no-win / no-loss funding agreements due to the complex and variable environment the department operates in overseas. The difference between the balance of departmental appropriation receivable disclosed in Note 3.1B: Trade and other receivables and the above balance on unspent annual appropriations is due to these agreements and cash at bank and on hand. Adjustments relating to the no-win / no-loss agreements are recognised as formal additions or reductions in DFAT's accounts.

168 | | 169

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

1-----

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 5.1B: Unspent annual appropriations ('recoverable GST exclusive') (continued)

2020 2019

$'000 $'000

Administered Supply Act (No. 1) 2016-171 - 155,860

Appropriation Act (No. 1) 2016-171 - 104,775

Appropriation Act (No. 1) 2016-17 - ACB1 - 89

Appropriation Act (No. 2) 2016-171 - 581,531

Appropriation Act (No. 1) 2017-182 125,108 151,563

Appropriation Act (No. 1) 2017-18 - ACB 95 95

Appropriation Act (No. 1) 2018-19 73,156 224,200

Appropriation Act (No. 1) 2018-19 - ACB 461 461

Appropriation Act (No. 3) 2018-19 - 472

Appropriation Act (No. 1) 2018-19 - Cash at Bank and on hand - 5,012

Supply Act (No. 1) 2019-20 202 -

Appropriation Act (No. 1) 2019-2020 167,529 -

Appropriation Act (No. 1) 2019-2020 - ACB 71 -

Appropriation Act (No. 1) 2019-20 - Cash at Bank and on hand 5,001 -

Supply Act (No. 2) 2019-20 252,114 -

Appropriation Act (No. 2) 2019-20 352,958 -

Total administered 976,695 1,224,058

1. Appropriation Acts (No. 1 and 2) 2016-17 and Supply Act (No.1) were repealed on 1 July 2019. 2. Appropriation Act (No. 1) 2017-18 includes $10.772m withheld under section 51.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 5.1C: Special appropriations ('recoverable GST exclusive')

Appropriation applied 2020 2019

Authority Type Purpose $'000 $'000

Export Finance and Insurance Unlimited For the payment by the - -

Corporation (Efic) Act 1991 Amount Commonwealth to EFA of

s.54(10), Administered amounts equal to the amount of

capital determined by the EFA Board as necessary to overcome the inadequacies, in the moneys or other assets of EFA to meet the expected liabilities, losses or claims against EFA.

Public Governance, Performance and Refund To provide an appropriation 1,861 1,054

Accountability Act 2013 s77, where an Act or other law

Administered1 requires or permits the repayment

of an amount received by the Commonwealth and apart from this section there is no specific appropriation for the repayment.

Total special appropriation applied 1,861 1,054

1. DFAT uses section 77 of the PGPA Act to make refunds of passport and consular fees in certain circumstances, where there is no other specific appropriation available to make the repayment.

Compliance with statutory conditions for payments from the consolidated revenue fund

Section 83 of the Constitution provides that no amount may be paid out of the consolidated revenue fund except under an appropriation made by law. An internal reconciliation process identified 36 drawdowns totalling $914,315.87 from the special appropriation in error, which breached section 83 of the Constitution in the 2019-20 financial year. A valid appropriation did exist at the time of payment and these funds should have been paid from the Administered Appropriation Act (No. 1) 2019-2020 and will be returned to consolidated revenue during the 2020-2021 financial year.

170 | | 171

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

5.2

Special Accounts Note 5.2A: Special accounts ('recoverable GST exclusive')

Overseas property special account

1

(Departmental)

Services for other entities and trust moneys -DFAT special account

2

(Administered)

DFAT SOETM Special Account 2019

3

(Administered)

2020

2019

2020

2019

2020

2019

$'000

$'000

$'000

$'000

$'000

$'000

Balance brought forward from previous period

337,822

357,325

5,202

9,403

-

-

Increases

185,807

129,085

18,163

18,918

23,554

-

Total increases

185,807

129,085

18,163

18,918

23,554

-

Available for payments

523,629

486,410

23,365

28,321

23,554

-

Decreases Administered

-

-

(23,365)

(23,119)

(17,935)

-

Departmental

(188,269)

(148,588)

-

-

-

-

Total decreases

(188,269)

(148,588)

(23,365)

(23,119)

(17,935)

-

Total balance carried to the next period

335,360

337,822

-

5,202

5,619

-

Balance represented by: Cash held in entity bank accounts

1,331

2,293

-

-

-

-

Cash held in the Official Public Accoun

t

334,029

335,529

-

5,202

5,619

-

Total balance carried to the next period

335,360

337,822

-

5,202

5,619

-

Consular services special account

4

(Administered)

EXPO 2020 Dubai

5

(Administered)

2020

2019

2020

2019

$'000

$'000

$'000

$'000

Balance brought forward from previous period

47

50

34,974

-

Increases

240

99

1,044

41,756

Total increases

240

99

1,044

41,756

Available for payments

287

149

36,018

41,756

Decreases Administered

(250)

(102)

(18,504)

(6,782)

Departmental

-

-

-

-

Total decreases

(250)

(102)

(18,504)

(6,782)

Total balance carried to the next period

37

47

17,514

34,974

Balance represented by: Cash held in entity bank accounts

-

-

-

5

Cash held in the Official Public Account

37

47

17,514

34,969

Total balance carried to the next period

37

47

17,514

34,974

Note 5.2A: Special accounts ('recoverable GST exclusive') (continued)

1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 78 Establishing Instrument: PGPA Act Determination (Establishment of Overseas Property Special Account 2017) Purpose: a) acquire, lease, construct, manage, operate, repair, maintain, divest, finance, identify or advise on, and undertake any

other activities in relation to, the real property of the Commonwealth outside Australia b) repay to an original payer amounts credited to the special account or to the former special account, after any necessary payments made for the purposes mentioned in paragraph (a) c) carry out activities that are incidental to a purpose mentioned in paragraph (a) d) reduce the balance of the Special Account (and, therefore, the available appropriation for the Account) without making a

real or notional payment, including to give effect to the remittance of amounts to the Official Public Account as agreed between the Finance Minister and the responsible minister e) repay amounts where an Act or other law requires or permits the repayment of an amount received.

2. Appropriation: Public Governance, Performance and Accountability Act 2013 section 78 Establishing Instrument: Financial Management and Accountability (Special Accounts) Determination 2009/25 Purpose: a) disburse amounts held in trust or otherwise for the benefit of a person other than the Commonwealth

b) disburse amounts in connection with services performed on behalf of other governments and bodies that are corporate Commonwealth entities under the PGPA Act c) repay amounts where an Act or other law requires or permits the repayment of an amount received d) reduce the balance of the Special Account (and, therefore, the available appropriation for the Account) without making a

real or notional payment.

This special account was sunsetted on 18 September 2019 and replaced with the below special account from this date.

3. Appropriation: Public Governance, Performance and Accountability Act 2013 section 78 Establishing Instrument: PGPA Act Determination (DFAT SOETM Special Account 2019) Purpose: a) to disburse an amount held on trust or otherwise for the benefit of a person other than the Commonwealth;

b) to disburse an amount in connection with services performed for or on behalf of other governments and bodies, including Commonwealth entities; c) to disburse an amount in connection with joint activities performed for, on behalf of, or together with, another Commonwealth entity, Commonwealth company, another government, organisation or person; d) to disburse an amount in connection with an agreement between the Commonwealth and another government; e) to repay an amount where a court order, Act or other law requires or permits the repayment of an amount received; and f) to reduce the balance of the special account (and, therefore, the available appropriation for the special account) without

making a real or notional payment.

The SOETM Special Account includes the balance of funds held in trust for overseas governments via delegated co-operation agreements and for private individuals for amounts being transferred back to Australia in accordance with established policy. These amounts are $4,942,286.42 and $2,430.78 respectively and have, therefore, been excluded from presentation in the Administered Financial Statements.

172 | | 173

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

I

I

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 5.2A: Special accounts ('recoverable GST exclusive') (continued)

4. Appropriation: Public Governance, Performance and Accountability Act 2013 section 78 Establishing Instrument: PGPA Act (Consular Services Special Account 2015 - Establishment) Determination 2015/05 Purpose: a) providing assistance to Australian citizens and permanent residents overseas:

i. in circumstances of urgency ii. when commercial money transfer services are unavailable or inappropriate b) to repay to an original payer amounts credited to the Special Account and residual after any necessary payments have been made under paragraph (a) c) activities that are incidental to a purpose mentioned in paragraphs (a) or (b) d) to reduce the balance of the Special Account (and, therefore, the available appropriation for that Account) without

making a real or notional payment e) to repay amounts where an Act or other law requires or permits the repayment of an amount received.

The entire balance of the Consular Special Account is held in trust.

5. Appropriation: Public Governance, Performance and Accountability Act 2013 section 78 Establishing Instrument: PGPA Act Determination (Expo 2020 Dubai Special Account). Purpose: a) to undertake activities in relation to the Commonwealth’s participation at Expo 2020, including, but not limited to:

i. acquiring, leasing, hiring, constructing, managing, operating, repairing, maintaining, identifying or advising on assets; ii. costs related to staff and contractors to carry out activities listed in clause (a)i above, and; iii. activities that are incidental to those listed in clause (a)i above. b) to disburse an amount in connection with an agreement between the Commonwealth and another government in relation

to the Expo 2020; c) to repay an amount where an Act, other law, or court order requires or permits the repayment of an amount credited to the special account; d) to reduce the balance of the special account (and, therefore, the available appropriation for the special account) without

making a real or notional payment.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2020 2019

$'000 $'000

Note 5.2B: Assets held in trust As at 1 July 3,439 7,866

Receipts 24,436 14,403

Payments (22,894) (18,830)

Total as at 30 June 4,981 3,439

Total assets held in trust 4,981 3,439

Accounting policy

All trust funds are held as cash within special accounts in OPA for the benefit of third parties. The SOETM Special Account includes the balance of funds held in trust for overseas governments via delegated co-operation agreements and for private individuals for amounts being transferred back to Australia in accordance with established policy. Consular trust funds are held to provide assistance to Australian citizens and permanent residents overseas in circumstances of urgency, or when commercial money transfer services are unavailable or inappropriate.

174 | | 175

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade Department of Foreign Affairs and Trade

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

6. People and Relationships 6.1 Employee Provisions

2020 2019

$'000 $'000

Note 6.1A: Employee provisions Leave 204,795 184,169

Separations and redundancies 22,511 21,687

Superannuation 17,716 16,060

Other employee provisions 33,719 52,165

Total employee provisions 278,741 274,081

Accounting policy

Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts. Other long-term employee benefit liabilities are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including DFAT’s employer superannuation contribution rates and other employment on-costs, to the extent that the leave is likely to be taken during service rather than paid out on separation.

The liability for long service leave has been determined with reference to the work of an actuary as at 31 October 2019. The estimate of the present value of the liability takes into account attrition rates, pay increases through promotion and inflation. DFAT engages an actuary every three years unless it is assessed that there is a material movement in DFAT’s staff profile.

Separation and Redundancy

In some countries, locally engaged staff employed by DFAT at overseas posts are entitled to separation benefits under local labour laws. DFAT provides for these separation benefits, and they have been classified as an employee benefit.

DFAT recognises a provision for redundancy when a decision by management has been made and affected employees have been informed that DFAT will carry out those terminations of employment.

Superannuation

The Australian-based staff of DFAT are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the Public Sector Superannuation accumulation plan (PSSap), or other superannuation schemes. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and the other superannuation schemes 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 administered schedules and notes.

DFAT makes employer contributions to the employee superannuation schemes at rates determined by the Government. For defined benefit scheme employer contribution rates are determined by an actuary to be sufficient to meet the current cost to the Government. DFAT accounts for these as if they were contributions to defined contributions plans.

Where required, DFAT makes superannuation contributions for locally engaged staff overseas to comply with local labour laws. Australian based staff who are engaged on a temporary basis and locally engaged staff overseas who are considered to be Australian residents for taxation purposes have compulsory employer superannuation contributions made on their behalf by DFAT.

2020 2019

$'000 $'000

Note 6.1B: Administered employee provisions Leave 5,686 4,832

Superannuation 428 353

Separations and redundancies 4,947 4,145

Defined benefit pension schemes 82,653 77,613

Total administered employee provisions 93,714 86,943

Accounting Policy

DFAT administers defined benefit pension schemes for some locally engaged staff in Washington, Ottawa, London, Port Louis and New Delhi on behalf of the Australian Government. DFAT recognises an administered liability for the present values of the Government's expected future payments arising from the unfunded components of the Washington, Ottawa, London and Port Louis Pension Schemes and the New Delhi Gratuity Scheme.

Increases in the accrued benefits liability, pursuant to regular estimates of the liability taking account of actuarial reviews, are recognised as an expense and classified as employee superannuation expense. Re-measurement of the net defined benefit obligation is recognised in other comprehensive income as outlined in AASB 119 Employee Benefits. DFAT engages actuaries to estimate the unfunded provisions and expected future cash flows as at the end of the reporting period each year. More details on the defined benefit pension schemes are included in Note 7.6: Administered - Defined Benefit Pension Schemes.

176 | | 177

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

178 | | 179

Total key management personnel remuneration expenses1 4,580 4,118

The total number of key management personnel that are included in the above table are 12 (2019: 12).

1. The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Ministers. The Portfolio Ministers remuneration and other benefits are set by the Remuneration Tribunal and are not paid by DFAT.

6.3 Related Party Disclosures

Related party relationships:

DFAT is an Australian Government controlled entity. DFAT’s related parties are key management personnel including the DFAT Portfolio and Assisting Ministers, and other Australian Government entities.

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.

Transactions with related parties of DFAT have occurred within normal customer or supplier relationships on terms and conditions no more favourable than those which it is reasonable to expect DFAT would have entered into on an arm's-length basis. These transactions have not been separately disclosed in this note.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by DFAT, it has been determined that there are no related party transactions (2019: nil) to be separately disclosed.

2020 2019

$'000 $'000

Short-term employee benefits 3,804 3,517

Post-employment benefits 622 526

Other long-term employee benefits 154 75

6.2 Key Management Personnel Remuneration

DFAT’s key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the department. DFAT has determined the key management personnel to be the Portfolio and Assisting Ministers, the Secretary, Deputy Secretaries, Chief People Officer, Chief Risk Officers and Chief Finance Officer. Key management personnel remuneration is reported in the table below:

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

7. Managing Uncertainties 7.1

Contingent Assets and Liabilities 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 th

e amount cannot be reliably measured. Contingent assets are reported when settlement is probable but not virtually certain and contingent

liabilities are disclosed when the probability of settlement is greater than remote. Note 7.1A: Contingent assets and liabilities

Guarantees

Claims for damages or costs

Total

2020

2019

2020

2019

2020

2019

$'000

$'000

$'000

$'000

$'000

$'000

Contingent liabilities Balance from previous period

709 706 1,905 423 2,614 1,129

New contingent liabilities recognised

- - - 1,467 - 1,467

Re-measurement

1 3 32 15 33 18

Obligations expired

- - (1,467) - (1,467) -

Total contingent liabilities

710 709 470 1,905 1,180 2,614

Net contingent (liabilities)

(710) (709) (470) (1,905) (1,180) (2,614)

Quantifiable Contingencies The above table reports continge

nt liabilities in respect of claims for damages / costs of $0.470m (2019: $1.905m). This amount represents an estimate of DFAT's liability based on precedent cases

and on advice from DFAT's extern

al legal service providers. The department is defending the claims.

The above table also reports contingent li

abilities in respect of financial guarantees made by the department of $0.710m (2019: $0.709m)

Unquantifiable Contingencies At 30 June 2020, DFAT was involved in a number of litigation ma

tters for alleged losses suffered by claimants. DFAT is defending these claims. It is not possible to estimate the amounts of any

eventual payments that may be required in relation to these claims.

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 7.1B: Administered - contingent assets and liabilities DFAT has no administered contingent assets or liabilities (2019: nil).

Quantifiable Administered Contingencies There are no quantifiable administered contingencies disclosed in the Administered Schedule of Assets and Liabilities (2019: nil).

Unquantifiable Administered Contingencies At 30 June 2020, DFAT was involved in a number of matters relating to the recovery of funds. It is not possible to estimate the amounts of any eventual recoveries that may be received in relation to these matters. There are no unquantifiable administered liabilities.

Significant Remote Administered Contingencies Under section 62 of the Efic Act, the Australian Government guarantees EFA’s creditors the due payment of all monies payable, or that may at any time become payable, by EFA on the Commercial Account and has a $1.2B (2019: $1.2B) callable capital facility available for this purpose. This guarantee has never been utilised. Details of remote contingencies are shown in the following table.

2020 2019

$'000 $'000

Contracts of insurance and guarantees 462,100 678,500

Statement of financial position liabilities 1,943,100 2,433,100

NIA contracts of insurance, guarantees and statement of position liabilities 843,000 395,600

Total 3,248,200 3,507,200

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

7.2 Fair Value Measurements

The following tables provide an analysis of assets and liabilities that are measured at fair value. The remaining assets and liabilities disclosed in the statement of financial position do not apply the fair value hierarchy.

The different levels of the fair value hierarchy are defined below.

 Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date.  Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.  Level 3: Unobservable inputs for the asset or liability.

Accounting policy

An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from their fair value. DFAT's assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all non-financial assets is considered their highest and best use. DFAT's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. There were no transfers between levels 1 and 2 for recurring fair value

measurements during the year.

The methods utilised to determine and substantiate the unobservable inputs are derived and evaluated as follows:

Buildings and Leasehold Improvements - Replacement Cost of New Assets and Contracted Prices

DFAT also controls assets situated in locations where construction cost evidence is limited. In determining the replacement cost for new assets measured using the depreciated replacement cost approach, reference has been made to the available building cost information. The valuer has used significant professional judgement in determining the fair value measurements of these assets.

Leasehold improvements - Physical depreciation and obsolescence

Assets that are not transacted with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the Depreciated Replacement Cost approach. Under the Depreciated Replacement Cost approach, the estimated cost to replace the asset is calculated and then adjusted to take into account physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration. For all leasehold improvement assets, the consumed economic benefit / asset obsolescence deduction is determined based on the term of the associated lease.

Land and Buildings - Adjusted Market Transactions, Estimated Market Rental Values and Capitalisation Rates

DFAT also controls assets situated in locations where property markets experience relatively few transactions. In determining fair value of these assets, reference has been made to available sales evidence together with other relevant information related to local economic conditions and property market conditions. The valuer has used significant professional judgement in determining the fair value measurements of these assets.

Investment in the EFA Commercial Account and Tourism Australia

DFAT has determined that the reported net asset values represent fair value at the end of the reporting period.

Financial Liabilities at Fair Value Through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

| 181 180 |

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 7.2A: Fair value measurements, valuation techniques and inputs used

2020 $'000

2019 $'000

Category (Level 1, 2 or 3)

Valuation Technique

Inputs Used

Non-financial assets: Land 1,082,222 1,483,830 2 Market approach AMT

Land 906,842 489,708 3 Market approach AMT, SPJ

Buildings 181,560 173,597 2 Market approach AMT

Buildings 9,672 3,235 3 Market approach AMT, SPJ

Buildings 301,890 570,765 2 Income approach MRT, CR

Buildings 17,600 17,997 3 Income approach MRT, CR, SPJ

Buildings 819,349 553,090 3 Cost approach RCN, CEB

Leasehold Improvements 324,825 200,162 3 Cost approach RCN, CEB

Plant and Equipment 199,152 203,384 2 Market approach AMT

Plant and Equipment 831 956 3 Market approach AMT, SPJ

Plant and Equipment 76,620 99,899 3 Cost approach RCN, CEB

Assets held for sale - land 9,346 19,141 2 Market approach AMT

Assets held for sale - buildings 3,082 477 2 Market approach AMT

Total non-financial assets 3,932,991 3,816,241

Total fair value measurement of assets in the statement of financial position 3,932,991 3,816,241

Valuation Techniques: Market Approach: This approach seeks to estimate the current value of an asset with reference to recent market transactions involving identical or comparable assets. Income Approach: Converts future amounts (cash flows or income and expenses) to a single current (i.e. discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts. Cost Approach: The amount a market participant would be prepared to pay to acquire or construct a substitute asset of comparable utility, adjusted for physical depreciation and obsolescence.

Inputs Used: Adjusted Market Transactions (AMT): market transactions of comparable assets, adjusted to reflect differences in price sensitive characteristics. Significant Professional Judgement (SPJ): Significant professional adjustments, made by the independent valuer, to the available market transactions to reconcile the valuation. Market Rental Transactions (MRT): market rental transactions of comparable assets, adjusted to reflect differences in price. Capitalisation Rate (CR): Capitalisation rates as represented by the income produced by an investment property, expressed as a percentage of the assets value. Replacement Cost of New Assets (RCN): the amount a market participant would pay to acquire or construct a new substitute asset of comparable utility. Consumed Economic Benefits (CEB): obsolescence of assets, physical deterioration, functional or technical obsolescence and conditions of the economic environment specific to the asset.

The COVID-19 pandemic has had varied financial impacts on markets in which DFAT controls property, plant and equipment which has led to some uncertainty over values at year end. The external independent valuer has taken into account the impact of COVID-19 on the valuation inputs by using the best available market data, noting that in some cases the markets have experienced limited observable inputs. DFAT reclassified two land and two building assets in 2020 valued at $13.015m (2019: $19.618m) to assets held for sale. The land and building were measured at fair value less cost to sell at 30 June.

182 |

NO

TES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 7.2B: Reconciliation for recurring level 3 fair value measurements

Non-Financial assets - 2020 Leasehold improve- Plant and

Land Buildings ments equipment Total

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

Opening balance - 1 July 2019 489,708 574,322 200,162 100,855 1,365,047

Total gains / (losses) recognised in other comprehensive income1 (14,918) (3,796) 49,490 (23,785) 6,991

Purchases - 6,557 75,591 1,074 83,222

Disposals - - (418) (693) (1,111)

Transfers into Level 32 432,052 269,538 - - 701,590

Transfers out of Level 33 - - - - -

Closing balance - 30 June 2020 906,842 846,621 324,825 77,451 2,155,739

Non-Financial assets - 2019 Leasehold improve- Plant and

Land Buildings ments equipment Total

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

Opening balance - 1 July 2018 408,677 522,245 246,820 53,899 1,231,641

Total gains / (losses) recognised in other comprehensive income1 20,089 13,719 (50,685) (8,563) (25,440)

Purchases 5,682 36,957 4,027 56,112 102,778

Disposals - - - (593) (593)

Transfers into Level 32 55,710 4,188 - - 59,898

Transfers out of Level 33 (450) (2,787) - - (3,237)

Closing balance - 30 June 2019 489,708 574,322 200,162 100,855 1,365,047

1. These gains / (losses) are presented in the Statement of Comprehensive Income under Depreciation and Amortisation, Write-down and Impairment of Assets, and change resulting from asset revaluation. 2. There have been transfers of land and buildings assets into Level 3 due to a combination of, limited market transactions, use of significant professional judgement, or a change in the valuation technique from the market approach to depreciated replacement

cost approach. 3. There have been transfers of land and buildings assets out of Level 3 due to a combination of, the identification of market transactions, or a change in the valuation technique from the depreciated replacement cost approach to the market approach.

| 183

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

Financial assets at amortised cost Cash and cash equivalents Goods and services receivables (gross) Cash held by outsiders

Total financial assets at amortised cost Total financial assets

3.1A 3.1B 3.1B

428,027 96,898 168

525,093 525,093

430,643 75,450 159

506,252 506,252

Financial liabilities Financial liabilities measured at amortised cost Trade creditors and accruals Total financial liabilities measured at amortised cost

Total financial liabilities

3.3A 79,152

79,152 79,152

97,347 97,347 97,347

Accounting policy

Accounting policies for financial assets can be found in Note 3.1: Financial Assets. Accounting policies for financial liabilities can be found in Note 3.3: Payables.

Note 7.3B: Net gains or losses on financial assets Financial assets at amortised cost Foreign exchange (losses) / gains (11,448) 3,461

Write-down of financial assets 1.1C (68) (21)

Movement in impairment loss allowance 1.1C (195) 12

Net (losses) / gains on financial assets at amortised cost (11,711) 3,452

Net (losses) / gains on financial assets (11,711) 3,452

Note 7.3C: Net gains or losses on financial liabilities Financial liabilities measured at amortised cost Foreign exchange gains 1,986 1,682

Net gains on financial liabilities measured at amortised cost 1,986 1,682

Net gains on financial liabilities 1,986 1,682

7.3 Financial Instruments

2020 2019

$'000 $'000

Note 7.3A: Categories of financial instruments Notes

Financial assets

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

7.4

Administered Fair Value Measurements The following tables provide an analysis of

administered assets and liabilities measured at fair value. The remaining assets and liabilities disclosed in the Schedule of Administered Assets and

Liabilities do not apply the fair value hierarchy. See Note 7.2:

Fair Value Measurements for an overview of the different levels of the fair value hierarchy and techniques and inputs used to determine

fair value. Note 7.4A: Fair value measurements,

valuation techniques and inputs used

Non-monetary IDA and ADF subscriptions at

2,556,415 2,445,947 3 Discounted cash A discounted rate range using the “build up” method

FVOCI flow method based on the following components: risk free rate (20 year

US government bond rate), currency risk premium, sovereign risk premium and liquidity risk premium to discount the expected loan principal repayments of the loan portfolio of IDA and ADF.

Fair value measurements at the end of the reporting

period using For Levels 2 and 3 fair value measurements

2020

2019

Level

Valuation

$'000

$'000

(1, 2 or 3)

technique(s)

1

Inputs used

2

Financial assets: Other investments:

Investment in EFA's Commercial Account

537,045 539,300 3 Net asset position Statement of financial position of EFA's Commercial

Account.

Tourism Australia

62,247 20,991 3 Net asset position Statement of financial position of Tourism Australia.

Total financial assets

3,155,707 3,006,238

Total non-financial assets

- -

Total fair value measurem

ents of assets in the

administered schedule of assets and liabilities

3,155,707 3,006,238

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

184 | | 185

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

Multilateral grants

1,058,130 930,179 3 Discounted cash

flow method

A discounted rate range and a 10 year government bond rate is used to discount the expected payment schedules of each loan agreement.

Multilateral contributions payable

662,142 494,521 3 Discounted cash

flow method

A 10 year Australian government bond rate and a discounted rate range (comprising a risk free rate (20 year US government bond rate), and currency, sovereign and liquidity risk premium) is used to discount the expected payment schedules of each loan agreement.

Total financial liabilities

1,720,272

1,424,700

Total fair value measuremen

ts of liabilities in the

administered schedule of assets and liabilities

1,720,272

1,424,700

There have been no transfers between levels during the year (201

9: nil). DFAT's policy for determining when transfers between levels are deemed to have occurred can be found in Note 7.2: Fair

Value Measurements. Fair value measurements - hi

g hest and best use differs from current use for non-financial assets

DFAT's Administered assets are held for operational purposes and not held for the purposes of deriving a profit. The current us

e of all controlled assets is considered their highest and best use.

1. There have been no changes to valuation techniques used. 2. There were no significant inter-re

lationships between unobservable inputs that materially affect fair value.

The future economic benefits of DFAT's assets are not primarily

dependent on their ability to generate cash flows. The determination of fair value and the use of observable and unobservable data is

disclosed as part of Note 4.1C: Investments. Note 7.4A: Fair value measurements, valuati

on techniques and inputs used (continued)

Fair value measurements at the end of the reporting

p eriod usin

g

For Levels 2 and 3 fair value measurements

2020

2019

Level

Valuation

$'000

$'000

(1, 2 or 3)

technique(s)

1

Inputs used

2

Financial liabilities:

Financial assets Investments Total

2020 2020

$'000 $'000

Closing balance - 30 June 2020 3,153,539 3,153,539

Note 7.4B: Reconciliation for recurring level 3 fair value measurements

Recurring Level 3 fair value measurements - reconciliation for assets

Opening balance - 1 July 2019 3,006,238 3,006,238

Total gains recognised in other comprehensive income1 147,301 147,301

Changes in unrealised gains / (losses) recognised in net cost of

- -

services for assets held at the end of the reporting period3

Financial assets Investments Total

2019 2019

$'000 $'000

Opening balance - 1 July 2018 2,756,164 2,756,164

Total gains recognised in other comprehensive income1 250,074 250,074

Closing balance - 30 June 2019 3,006,238 3,006,238

Changes in unrealised gains / (losses) recognised in net cost of

- -

services for assets held at the end of the reporting period2

186 | | 187

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

I

I

I

I

I

I

I

I

I

I

I

~------ • -

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

Note 7.4B: Reconciliation for recurring leve

l 3 fair value measurements (continued)

Recurrin

g Level 3 fair value measurements

- reconciliation for liabilities

Financial Liabilities

Multilateral

g rants

Multilateral

contributions

p a y

able

Total

2020 2020 2020

$'000 $'000 $'000

Opening balance - 1 July 2019

930,179

494,521

1,424,700

Total

g ains reco

g nised in net cost of services

3

253,217

336,602

589,819

Settlements

(125,266)

(168,980)

(294,246)

Closing balance - 30 June 2020

1,058,130

662,143

1,720,273

Changes in unrealised gains / (losses) recognised in net cost of services for assets held at the end of the re

p ortin

g

p erio

d 2

-

-

-

Financial Liabilities

Multilateral grants

Multilateral

contributions payable

Total

2019

2019

2019

$'000

$'000

$'000

Opening balance - 1 July 2018

980,661

702,157

1,682,818

Total gains / (losses) recogni

sed in net cost of services

3

311,916

(53,123)

258,793

Settlements

(362,398)

(154,513)

(516,911)

Closing balance - 30 June 2019

930,179

494,521

1,424,700

Changes in unrealised gains / (losses) recognised in net cost of services for assets held at the end of the re

p ortin

g

p erio

d 2

-

-

-

1. These gains / (losses) are represented in the Administered Schedule of Comprehensive Income. 2. There are no unrealised gains (losses) for level 3 assets an

d liabilities in the Administered Schedule of Comprehensive Income as at both 30 June 2020 and 30 June 2019.

3. These gains / (losses) are represented in the Administered Sc

hedule of Comprehensive Income and in Note 2.1B: Multilateral replenishments and other loans.

7.5 Administered Financial Instruments

2020 2019

Notes $'000 $'000

Note 7.5A: Categories of financial instruments Financial assets Financial assets at amortised cost Cash and cash equivalents 4.1A 23,138 41,796

Goods and services receivables 4.1B 4 6

Concessional loan receivable 4.1B 162,337 159,088

Net position of EFA - NIA 4.1B 12,749 15,120

Traveller Emergency Loans 4.1B 1,783 543

Total financial assets at amortised cost 200,011 216,553

Financial assets at fair value through other comprehensive income (FVOCI) Non-monetary equity instrument 4.1C 2,556,415 2,445,947

EFA - Commercial Account 4.1C 537,045 539,300

Tourism Australia 4.1C 62,247 20,991

Total financial assets at fair value through other comprehensive income 3,155,707 3,006,238 Total financial assets 3,355,718 3,222,791

Financial Liabilities Financial liabilities measured at amortised cost International development assistance 4.3B 144,402 136,599

Total financial liabilities measured at amortised cost 144,402 136,599

Financial liabilities at fair value through profit or loss Multilateral grants payable 4.3A 1,058,130 930,179

Multilateral contributions payable 4.3B 664,311 494,521

Total financial liabilities at fair value through profit or loss 1,722,441 1,424,700

Total financial liabilities 1,866,843 1,561,299

The carrying value of DFAT’s administered assets and liabilities has also been assessed as the fair value of the assets and liabilities. The process for determining fair value is regularly reviewed.

The table at Note 7.4A: Fair value measurements, valuation techniques and inputs used provides an analysis of financial instruments that are measured at fair value, by valuation method.

Note 7.5B: Net gains or losses on financial assets Financial assets at amortised cost Interest revenue 13,310 12,868

Impairment 4.1B (281) (104)

Write-off 2.1D (146) (138)

Dividend revenue 2.2D 13,425 6,941

Competitive neutrality revenue 2.2D 13,934 8,082

Net gain on financial assets at amortised cost 40,243 27,649

Financial assets at fair value through other comprehensive income Revaluation gain recognised in equity 39,001 95,127

Net gain on financial assets at fair value through other comprehensive income 39,001 95,127

Net gain on financial assets 79,244 122,776

188 | | 189

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

----.- .--

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2020 2019

$'000 $'000

Note 7.5C: Net income and expense from financial liabilities Financial liabilities measured at amortised cost Foreign exchange loss (569) (3,107)

Net gain on financial liabilities measured at amortised cost (569) (3,107)

Financial liabilities at fair value through profit or loss (held for trading) Loss on remeasuring at fair value through profit or loss (341,228) (137,056)

Net (loss) on financial liabilities at fair value through profit or loss (held for trading) (341,228) (137,056) Net (loss) on financial liabilities (341,797) (140,163)

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

Note 7.5D: Credit risk Recognised in the DFAT Administered Accounts DFAT's senior executive has endorsed policies and procedures for

debt management (including the provision of credit terms) to reduce the incidence of credit risk. Collateral is not required on any

loan.

2020 $'000

Credit risk is the possibility that a debtor will not repay all or a portion of a loan or will not repay in a timely manner and

will therefore cause a loss to DFAT. DFAT has exposure to concentrations of

credit risk with regard to the ‘loan receivable’ and the ‘non-mone

tary available for sale debt instrument at fair value’. The maximum exposure DFAT has to credit risk at reporting date in relation to

each class of recognised financial assets is presented in the

following table excluding any collateral or credit enhancements.

DFAT has assessed the risk of default on payment and has allocated $2,702 (2019: $2,422)

to an impairment allowance for doubtful debts account. DFAT has no collateral to mitigate against credit

risk.

Maximum exposure to credit risk (excluding any collateral or credit enhancements)

2019 $'000

Credit quality of financial instruments not best

representing maximum exposure to credit risk

Amortised cost

187,114

176,708

Fair value through other comprehensive income

3,155,707

3,006,238

Total credit quality of financial instruments not be

st representing maximum exposure to credit risk 3,342,821

3,182,946

Credit quality of financial liabilities not best representing maximum exposure to credit risk Amortised cost

144,402

136,599

Through profit or loss

1,722,441

1,424,700

Total credit quality of financial liabilities not be

st representing maximum exposure to credit risk 1,866,843

1,561,299

Credit quality of financial assets not past

due or individually determined as impaired

Not past due

Not past due

Past due or

Past due or

or impaired

or impaired

impaired

impaired

2020

2019

2020

2019

$'000

$'000

$'000

$'000

Loans and receivables

185,822 175,716 1,292

992

Fair value through other comprehensive income

3,155,707 3,006,238 -

-

Total

3,341,529 3,181,954 1,292

992

190 | | 191

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF

THE FINANCIAL STATEMENTS

Note 7.5E: Li

q uidit

y risk

The continued existence of DFAT in its pr

esent form and with its present programs is dependent on government policy and on continuing appropriations by Parliament for DFAT’s administration and

programs. The probability of the Government encountering diffi

culties meeting its administered financial obligations is less than remote.

Maturities for non-derivative financial liabilities 2020

On

Within 1

Between 1

Between 2

More than

demand

y ear

to 2

y ears

to 5

y ears

5

y ears

Total

$'000

$'000

$'000

$'000

$'000

$'000

Financial liabilities measured at amortised cost

-

144,402

-

-

-

144,402

Financial liabilities at fair value through profit or loss

-

274,461

284,312

728,036

435,632

1,722,441

Total

-

418,863

284,312

728,036

435,632

1,866,843

Maturities for non-derivativ

e financial liabilities 2019

On

Within 1

Between 1 to

Between 2 to

More than

deman

d

yea r

2 years

5 years

5 years

Total

$'000

$'000

$'000

$'000

$'000

$'000

Financial liabilities measured at amortised cost

-

136,599

-

-

-

136,599

Financial liabilities at fair value through profit or loss

-

204,394

307,539

683,465

229,302

1,424,700

Total

-

340,993

307,539

683,465

229,302

1,561,299

DFAT had no derivative financial liabilities in both the current and prior financial year.

Note 7.5F: Market risk

Market risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises the following types of risk, either alone or in combination: interest rate risk, sovereign risk and liquidity risk (for the purposes of discounting the future value of the non-monetary available-for-sale debt instrument); currency risk (for the purposes of converting to Australian dollars the discounted United States dollar value of the non-monetary available-for-sale debt instrument); and the 10-year government bond rate for the purposes of discounting future liabilities relating to multilateral loan and grant commitments. The following sensitivity analysis discloses the effect that a reasonable possible change in each risk variable, either alone, or in total, would have on DFAT’s administered income and expenses.

The following table illustrates the effect on DFAT's administered net income less expenses and equity as at 30 June 2020 from 8.41% (2019: 8.70%) increase or decrease against the AUD in the currencies in which the financial instruments were administered by DFAT with all other variables held constant.

Sensitivity analysis of the risk that the entity is exposed to for 2020

Risk variable Change in risk variable

Effect on

Profit and loss Equity

% $'000 $'000

Currency risk $/USD + 8.41% (198,366) (198,366)

Currency risk $/USD - 8.41% 234,540 234,540

Interest rate risk Discount rates + 0.09% (9,431) (9,431)

Interest rate risk Discount rates - 0.09% 16,659 16,659

Sensitivity analysis of the risk that the entity is exposed to for 2019

Risk variable Change in risk variable

Effect on

Profit and loss Equity

% $'000 $'000

Currency risk $/USD + 8.70% (195,766) (195,766)

Currency risk $/USD - 8.70% 233,075 233,075

Interest rate risk Discount rates + 0.20% (70,312) (70,312)

Interest rate risk Discount rates - 0.20% (30,694) (30,694)

All other items are denominated in AUD and are not subject to market risk due to exchange fluctuations.

192 | | 193

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

- -

I

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade Department of Foreign Affairs and Trade

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

7.6 Administered Defined Benefit Pension Schemes

2020 2019

$'000 $'000

The amounts recognised in the Administered Schedule of Assets and Liabilities are as follows: Present value of funded obligations 63,070 61,970

Fair value of plan assets (41,092) (40,361)

21,978 21,609

Present value of unfunded obligations 60,675 56,004

Net liability in schedule of administered assets and liabilities 82,653 77,613

Movements in the net liability recognised in the Administered Schedule of Assets and Liabilities as follows: Net liability at the start of the year 77,613 69,609

Adjustment for addition of Port Louis Scheme net liability - 76

Exchange differences on foreign plans 622 3,126

Net expense recognised in the Administered Schedule of Comprehensive Income 3,089 3,792

Net actuarial losses 6,696 5,309

Contributions by employers (5,367) (4,299)

Net liability at the end of the year 82,653 77,613

Reconciliation of opening and closing balance of the defined benefit obligation: Opening liability 117,974 107,375

Adjustment for addition of Port Louis Scheme liabilities - 554

Exchange differences on foreign plans 104 3,860

Service cost 771 1,328

Interest cost 3,371 3,529

Contributions by plan participants (funded schemes) 18 56

Actuarial gains due to experience (14) (1,758)

Actuarial losses due to changes in financial assumptions 7,469 8,060

Actuarial gains due to changes in demographic assumptions (698) (168)

Benefits paid (5,250) (4,862)

Closing liability 123,745 117,974

Reconciliation of opening and closing balance of the fair value of plan assets: Opening assets 40,361 37,767

Adjustment for addition of Port Louis Scheme assets - 477

Exchange differences on foreign plans (518) 734

Expected return on plan assets 1,053 1,065

Contributions by plan participants (funded schemes) 18 56

Contributions by employer 2,143 1,068

Actuarial gains 61 825

Benefits paid (2,026) (1,631)

Closing liability 41,092 40,361

7.6 Administered Defined Benefit Pension Schemes (continued)

2020 2019

$'000 $'000

The amounts recognised in the Administered Schedule of Comprehensive Income are as follows: Current service cost 771 1,328

Net interest on net defined benefit liability 2,318 2,464

Total included 'employee benefit expense account' 3,089 3,792

Amounts recognised directly in administered equity

Financial year ended

2020 2019

$'000 $'000

Actuarial losses (6,696) (5,309)

Cumulative amounts of losses recognised in administered equity

Financial year ended

2020 2019

$'000 $'000

Actuarial losses (49,655) (42,959)

Pension Scheme Assets The fair value of scheme assets is represented by:

Financial year ended

2020 2019

Cash 0.8% N/A

Insured Pensioner 1.7% 1.7%

Investment in LIC India 5.3% 4.5%

Diversified Growth Fund 74.9% 76.2%

Liability Driven Investments 16.0% 16.3%

Deposite Administration Policy 1.3% 1.3%

Fair Value of pension scheme assets The fair value of scheme assets does not include amounts relating to: - any of DFAT's (and the Australian Government's) own financial instruments, and - any property occupied by, or other assets used by DFAT (or the Australian Government).

Principal actuarial assumptions at the reporting date (expressed as weighted averages):

Financial year ended

2020 2019

Discount rate at 30 June 2.09% 2.79%

Expected return on assets at 30 June Salary growth 2.60% 3.04%

Price inflation 2.81% 3.07%

Pension growth 2.66% 2.82%

194 | | 195

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade Department of Foreign Affairs and Trade

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

7.6 Administered Defined Benefit Pension Schemes (continued)

Historical Information

Financial year ended

2020 2019 2018 2017 2016

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

Present value of defined benefit obligations (123,745) (117,974) (107,375) (110,624) (116,122)

Fair value of scheme assets 41,092 40,361 37,767 37,221 36,095

Deficit in the scheme (82,653) (77,613) (69,608) (73,403) (80,028)

Actuarial gains / (losses) - net liabilities (6,696) (5,309) 6,414 2,991 (8,618)

Effect of exchange rate gains / (losses) (622) (3,126) (2,966) 3,213 254

Expected Employer Contributions

Financial year ended

2021 2020

$'000 $'000

Expected employer contributions 4,747 4,174

Scheme information DFAT administers on behalf of the Australian Government, defined benefit pension schemes for locally engaged staff across a number of agencies at posts in London, Port Louis and New Delhi, and also Ottawa and Washington (the North American Pension Scheme). Port Louis and New Delhi are still open to new employees. All schemes, with the exception of the New Delhi Gratuity Scheme, provide pensions that are linked to final salaries. Figures disclosed are based on formal actuarial reviews that are generally conducted triennially and reviewed and updated by the actuary on an annual basis. The New Delhi, Port Louis and London schemes are partially funded and the North American Pension Scheme is fully unfunded. Contributions for the North American Scheme are made to the Consolidated Revenue Fund, which will provide funding for the benefits payable under the scheme.

Weighted average maturity profile of defined benefit obligation Financial year ended 2020 2019

Weighted average duration of defined benefit obligation (years)

13.83 13.55

Sensitivity to assumptions

8. Other Info rmation 8.1 Aggregate Assets and Liabilities

2020 2019

$'000 $'000

Note 8.1A: Aggregate assets and liabilities

Assets expected to be recovered in: No more than 12 months 885,607 1,036,576

More than 12 months 5,306,473 3,942,010

Total assets 6,192,080 4,978,586

Liabilities expected to be settled in: No more than 12 months 384,271 275,565

More than 12 months 1,242,331 212,489

Total liabilities 1,626,602 488,054

Note 8.1B: Administered - aggregate assets and liabilities Assets expected to be recovered in: No more than 12 months 63,423 72,492

More than 12 months 3,322,057 3,168,544

Total assets 3,385,480 3,241,036

Liabilities expected to be recovered in: No more than 12 months 362,080 346,833

More than 12 months 1,598,477 1,301,409

Total liabilities 1,960,557 1,648,242

DFAT’s defined benefit obligation at the reporting date has been determined using actuarial calculations that require assumptions about future events. The estimated sensitivity of the defined benefit obligation to each significant assumption shown below has been determined at an individual scheme level if each assumption were changed in isolation. In practice, the schemes are subject to multiple externally experienced items which may vary the defined benefit obligation over time. The methods and assumptions used in preparing these sensitivity results remain consistent with those used in previous reporting periods.

The estimated effects of variations in the principal actuarial assumptions on DFAT’s defined benefit obligation at the reporting date are as follows: Increase / (decrease) in defined benefit obligation

Financial year ended

2020 2019

$'000 $'000

Discount rate Increase of 0.5% (8,629) (8,100)

Decrease of 0.5% 9,008 8,419

Future salary increases Increase of 0.5% 579 554

Decrease of 0.5% (556) (533)

Future inflation increases Increase of 0.5% 8,495 8,277

Decrease of 0.5% (8,215) (8,033)

196 | | 197

FINANCIAL STATEMENTS

DFAT ANNUAL REPORT 2019-20

-

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

8.2 Budgetary Reporting Explanation of Major Variances

8.2A: Explanation of major departmental variances

The following provides explanations of major variances between DFAT’s original budget estimates, as published in the 2019-20 Portfolio Budget Statements (PBS) and the final outcome for the financial year, as presented, in accordance with the Australian Accounting Standards. Major variances are those relevant to an analysis of DFAT’s performance, not merely on numerical differences between the actual amounts and budget. Unless otherwise individually significant, no additional commentary has been included.

There are a number of items not incorporated into PBS estimates due to their unpredictable, uncontrollable and/or unplanned nature. This includes:  The write-down, impairment and sale of assets reported in the Statement of Comprehensive Income;  Gains or losses from foreign exchange differences reported in the Statement of Comprehensive Income and Cash Flow

Statement;  Accounting adjustments for DFAT's provision for the future make-good of leasehold improvements in leased properties reported in the Statement of Comprehensive Income and Statement of Changes in Equity; and  Adjustments to revenue from Government for no-win / no-loss funding arrangements with the Department of Finance

which are reported in the Statement of Comprehensive Income and Statement of Financial Position.

DFAT does not estimate or factor in revaluation adjustments for land, buildings and plant and equipment assets as these movements are beyond DFAT's control and are difficult to predict. This item impacts other comprehensive income reported in the Statement of Comprehensive Income and Statement of Changes in Equity and non-financial asset balances reported in the Statement of Financial Position.

Major variances between actual figures reported in the financial statements and the PBS estimates include:  Employee benefits increased by $80.2m (9.9%) and employee provisions increased by $47.3m (20.4%) primarily due to a decrease in the long term Government bond rate used for valuing employee provisions, an increase in staff related expenses due to COVID-19 crisis impacts and the devaluation of the Australian dollar;  Gain on sale of assets increased by $12.5m (100%) due to the sale of a Manila staff residence which was not known at

the time of preparing the budget;  Cash and cash equivalents are $171.1m (66.7%) higher due to several Posts holding additional cash balances to accommodate emergency needs for payments during the COVID-19 crisis. In addition, payments relating to building the Washington Chancery have been delayed due to COVID-19 and DFAT received additional funds from the sale of the

Manila staff residence, which were not budgeted;  Trade and other receivables are $111.7m (22.2%) lower from the spend of prior year appropriation receivable balances in the current financial year to fund the operating deficit after excluding the surplus from the Overseas Property Office, and

from use of capital appropriation receivable to fund completion of projects that had been delayed from the prior year;  Impacts from implementation of the new accounting standard AASB 16 Leases were not quantified at the time of budget preparation, and therefore were not factored into the budget. This impacts a number of line items including Buildings (77.9%), Lease liabilities (100%) and Retained earnings (14.2%) on the Statement of Financial Position; Depreciation

(90.1%), Suppliers (23.5%) and Finance costs (100%) on the Statement of Comprehensive Income and Interest (100%) and Principal payments of lease liabilities (100%) on the Cash Flow Statement.

The Cash Flow Statement variances to budget also include variances due to items excluded from PBS estimates. Excluded items are section s74 receipts transferred to the Official Public Account (OPA) and subsequently re-drawn as appropriations, GST payments to suppliers and subsequent refunds received from the Australian Taxation Office.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Foreign Affairs and Trade NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

8.2B: Explanation of Major Administered Variances

There are a number of items excluded from the Portfolio Budget Statement (PBS) estimates on the Administered Schedule of Comprehensive Income, due to the unpredictable, uncontrollable and/or unplanned nature of some transactions, specifically items such as contributions, unplanned revenue and gains and EFA NIA income.

Further, DFAT does not estimate or factor in adjustments for re-measurement of the net liability for defined benefit pension schemes or movements in the carrying amount of investments, on the Administered Schedule of Assets and Liabilities for PBS purposes. Nor does it estimate the corresponding entries in Other Comprehensive Income (100.0% variance) as part of the PBS estimates. This is because the main factors that drive these movements are beyond DFAT's control, such as movements due to changes in the value of the Australian Dollar (AUD) on currency markets.

Overall expenses are $33.4m (0.8%) lower then budget with other grants and contributions decreasing by $80.4m (13.7%), offset by increases in multilateral replenishment expenses of $33.1m (5.9%). The actuals for multilateral replenishments include the effects of discounting ($17.9m) not budgeted for as discussed above. The original PBS estimates for other grants and contributions were based on obligations to pay as assessed by international organisations such as the United Nations (UN), whereas the actual contributions paid depend on resolutions passed by UN members. Driving the reduction are a range of resolutions passed by UN members during the year, which discontinued or reduced certain peacekeeping missions as well as foreign exchange fluctuations.

Total administered revenue is $83.2m (12.5%) lower than budget. Passport and consular fees, which comprise the majority of fees and charges collected, has decreased by $105.2m (18.5%) due to a significant drop in demand for passports and notarial services since March associated with the COVID-19 pandemic and restrictions on travel. This is offset by higher EFA NIA revenue of $4.1m (12.9%) resulting from increased activity on the NIA and as amounts are settled in foreign currencies before being converted to AUD. The EFA dividend and competitive neutrality revenue is $9.7m (55.0%) higher than budgeted and based on a percentage of prior year (i.e. 18/19) net after tax profits and can therefore be difficult to accurately determine when preparing PBS estimates.

Returns of prior year administered expenses reported as revenue were higher than budget by $2.7m (7.7%). These funds relate to unspent monies from previous funding arrangements and the amounts are dependent on acquittals being completed, requires estimations of funding requirements upfront and can be subject to unforeseen circumstances in the delivery that can significantly influence the amounts spent. Accordingly, the actual funds returned and the budget can be difficult to anticipate.

The actual cash on hand or on deposit balance reported in the Administered Schedule of Assets and Liabilities include a non-trust special account balance of $17.5m held for the Dubai Exposition 2020. Movements in this account can be difficult to estimate resulting in the variance of $4.5m (16.4%).

Other payables, which includes international development assistance accruals, were $85.6m (37.2%) lower than budget. This was due to the focus of the aid program changing to providing more upfront grant funding due to the COVID-19 pandemic rather than contract payments, which are normally accrued at 30 June.

The timing of the preparation of estimates included in the PBS can also result in variances to actual results. PBS estimates generally prepared in March for inclusion in the Federal Budget, are based on the current financial year estimates at that point in time. Significant movements and adjustments that occur late in a financial year are not able to be incorporated into the estimates, resulting in variances.

The impacts of the timing of PBS estimates are most pronounced through higher variances to budget for investments (12.9%), employee provisions including defined benefit pension schemes (17.7%) and multilateral grants and contributions payables (7.3%) administered on behalf of Government and reported in the Administered Schedule of Assets and Liabilities. The higher values result from revaluation and discounting factors applied at 30 June including the government bond rate and exchange rate fluctuations.

| 199 198 |

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APPENDIXES

APPENDIXES

DFAT ANNUAL REPORT 2019-20

APPENDIX 1: STAFFING OVERVIEW Table 3 All ongoing employees 2019-20

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

NSW 15 1 16 35 14 49 65

Qld 9 0 9 26 10 36 45

SA 2 2 4 9 3 12 16

Tas 9 0 9 6 2 8 17

Vic 26 1 27 56 13 69 96

WA 8 2 10 12 7 19 29

ACT 1,013 64 1,077 1,361 266 1,627 2,704

NT 2 0 2 5 2 7 9

Overseas 1,045 22 1,067 1,202 81 1,283 2,350

Americas 99 3 102 117 6 123 225

Asia 533 10 543 567 33 600 1,143

South Asia 141 1 142 88 2 90 232

Southeast Asia 305 9 314 374 19 393 707

North Asia 87 0 87 105 12 117 204

Europe 151 3 154 151 28 179 333

Middle East and Africa 124 2 126 116 1 117 243

Multilateral 29 1 30 46 4 50 80 Multilateral 6 2 8 8 2 10 18

New Zealand and the Pacific 109 3 112 205 9 214 326 New Zealand and the Pacific 86 4 90 102 12 114 204

APPENDIX 1: STAFFING OVERVIEW

Table 5 All non-ongoing employees 2019-20

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

NSW 0 0 0

Qld 0 0 0

SA 0 0 0

Tas 0 0 0

Vic 0 0 0

WA 0 0 0

ACT 18 17 35 21 12 33 68

NT 0 0 0

Overseas 231 30 261 274 54 328 589

Americas 11 2 13 14 2 16 29

Asia 73 14 87 73 23 96 183

South Asia 29 1 30 9 1 10 40

Southeast Asia 38 6 44 54 18 72 116

North Asia 6 7 13 10 4 14 27

Europe 9 7 16 24 8 32 48

Middle East and Africa 46 1 47 53 7 60 107

Total 2,129 92 2,221 2,712 398 3,110 5,331 Total 249 47 296 295 66 361 657

Table 4 All ongoing employees 2018-19

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

NSW 15 1 16 39 11 50 66

Qld 13 13 29 9 38 51

SA 2 1 3 9 3 12 15

Tas 7 2 9 6 3 9 18

Vic 25 1 26 55 13 68 94

WA 7 1 8 10 13 23 31

ACT 987 69 1,056 1,238 292 1,530 2,586

NT 2 2 7 7 9

Overseas 1,066 12 1,078 1,279 61 1,340 2,418

Americas 103 0 103 130 4 134 237

Asia 543 4 547 606 19 625 1,172

South Asia 141 0 141 99 1 100 241

Southeast Asia 311 3 314 393 10 403 717

North Asia 91 1 92 114 8 122 214

Europe 149 2 151 161 23 184 335

Middle East and Africa 125 1 126 120 2 122 248

Multilateral 29 3 32 54 4 58 90 Multilateral 6 1 7 6 1 7 14

New Zealand and the Pacific 117 2 119 208 9 217 336 New Zealand and the Pacific 99 9 108 108 17 125 233

Table 6 All non-ongoing employees 2018-19

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

NSW 0 0 0

Qld 0 0 0

SA 0 0 0

Tas 0 0 0

Vic 0 2 2 2

WA 0 0 0

ACT 20 8 28 29 13 42 70

NT 0 0 0

Overseas 264 56 320 300 98 398 718

Americas 16 3 19 20 5 25 44

Asia 81 29 110 88 46 134 244

South Asia 32 12 44 13 5 18 62

Southeast Asia 44 15 59 59 27 86 145

North Asia 5 2 7 16 14 30 37

Europe 12 10 22 23 16 39 61

Middle East and Africa 50 4 54 55 13 68 122

Total 2,124 87 2,211 2,672 405 3,077 5,288 Total 284 64 348 331 111 442 790

202 | | 203

APPENDIXES

DFAT ANNUAL REPORT 2019-20

Table 7 APS ongoing employees 2019-20

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

Secretary 0 1 1 1

Dir Safeguards 1 1 0 1

SES Band 3 8 8 5 5 13

SES Band 2 27 27 27 27 54

SES Band 1 103 1 104 79 3 82 186

Medical Officer Cl 5 1 1 0 1

SES Unattached 19 19 7 7 26

Medical Officer Cl 4 0 0 0

Medical Officer Cl 3 0 0 0

EL 2 252 8 260 276 27 303 563

EL 1 470 33 503 547 116 663 1,166

APS 6 237 13 250 362 58 420 670

APS 5 223 10 233 420 86 506 739

APS 4 25 25 31 1 32 57

APS 3 11 1 12 20 6 26 38

APS 2 0 0 0

APS 1 0 0 0

Graduates 46 46 49 49 95

Non-SES Unattached 63 5 68 95 24 119 187

APPENDIX 1: STAFFING OVERVIEW

Table 9 APS non-ongoing employees 2019-20

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

Secretary 0 0 0

Dir Safeguards 0 0 0

SES Band 3 5 5 1 1 6

SES Band 2 3 3 1 1 4

SES Band 1 2 2 1 1 3

Medical Officer Cl 5 0 0 0

SES unattached 0 0 0

Medical Officer Cl 4 5 5 2 2 7

Medical Officer Cl 3 0 1 1 1

EL 2 3 3 2 1 3 6

EL 1 7 15 22 7 6 13 35

APS 6 2 1 3 4 1 5 8

APS 5 4 1 5 8 2 10 15

APS 4 0 0 0

APS 3 0 0 0

APS 2 0 0 0

APS 1 0 0 0

Graduates 0 0 0

Non-SES unattached 0 0 0

Total 1,486 71 1,557 1,919 321 2,240 3,797 Total 31 17 48 25 12 37 85

Table 8 APS ongoing employees 2018-19

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

Secretary 0 1 1 1

Dir Safeguards 1 1 0 1

SES Band 3 9 9 5 5 14

SES Band 2 33 33 17 17 50

SES Band 1 110 1 111 75 5 80 191

Medical Officer Cl 5 0 1 1 1

SES Unattached 13 13 10 1 11 24

Medical Officer Cl 4 0 0 0

Medical Officer Cl 3 0 0 0

EL 2 239 4 243 241 27 268 511

EL 1 465 42 507 515 129 644 1,151

APS 6 213 10 223 328 61 389 612

APS 5 226 13 239 440 93 533 772

APS 4 20 20 35 35 55

APS 3 14 1 15 25 7 32 47

APS 2 0 0 0

APS 1 0 0 0

Graduates 53 53 56 1 57 110

Non-SES Unattached 64 4 68 85 21 106 174

Table 10 APS non-ongoing employees 2018-19

Male Female

Total Full time Part time

Total male

Full time

Part time

Total female

Secretary 0 0 0

Dir Safeguards 0 0 0

SES Band 3 4 4 1 1 5

SES Band 2 5 5 1 1 6

SES Band 1 3 3 1 1 4

Medical Officer Cl 5 0 0 0

SES unattached 0 0 0

Medical Officer Cl 4 3 3 1 1 4

Medical Officer Cl 3 0 1 1 1

EL 2 2 2 1 2 3 5

EL 1 8 5 13 4 5 9 22

APS 6 3 1 4 4 4 8

APS 5 3 2 5 22 5 27 32

APS 4 0 1 1 1

APS 3 0 0 0

APS 2 0 0 0

APS 1 0 0 0

Graduates 0 0 0

Non-SES unattached 0 0 0

Total 1,460 75 1,535 1,834 345 2,179 3,714 Total 31 8 39 36 13 49 88

204 | | 205

APPENDIXES

DFAT ANNUAL REPORT 2019-20

Table 11 APS employees by full-time and part-time status 2019-20

Ongoing Non-ongoing

Total Full-time Part-time Total Ongoing Full-time Part-time Total Non-

ongoing

Secretary 1 1 0 1

Dir Safeguards 1 1 0 1

SES Band 3 13 13 6 6 19

SES Band 2 54 54 3 1 4 58

SES Band 1 182 4 186 3 3 189

Medical Officer Cl 5 1 1 0 1

SES unattached 26 26 0 26

Medical Officer Cl 4 0 7 7 7

Medical Officer Cl 3 0 1 1 1

EL 2 528 35 563 5 1 6 569

EL 1 1,017 149 1,166 14 21 35 1,201

APS 6 599 71 670 6 2 8 678

APS 5 643 96 739 12 3 15 754

APS 4 56 1 57 0 57

APS 3 31 7 38 0 38

APS 2 0 0 0

APS 1 0 0 0

Graduates 95 95 0 95

Non-SES unattached 158 29 187 0 187

Total 3,405 392 3,797 56 29 85 3,882

Table 12 APS employees by full-time and part-time status 2018-19

Ongoing Non-ongoing

Total Full-time Part-time Total Ongoing Full-time Part-time Total Non-

ongoing

Secretary 1 1 0 1

Dir Safeguards 1 1 0 1

SES Band 3 14 14 5 5 19

SES Band 2 50 50 6 6 56

SES Band 1 185 6 191 4 4 195

Medical Officer Cl 5 1 1 0 1

SES unattached 23 1 24 0 24

Medical Officer Cl 4 0 4 4 4

Medical Officer Cl 3 0 1 1 1

EL 2 480 31 511 3 2 5 516

EL 1 980 171 1,151 12 10 22 1,173

APS 6 541 71 612 7 1 8 620

APS 5 666 106 772 25 7 32 804

APS 4 55 55 1 1 56

APS 3 39 8 47 0 47

APS 2 0 0 0

APS 1 0 0 0

Graduates 109 1 110 0 110

Non-SES unattached 149 25 174 0 174

APPENDIX 1: STAFFING OVERVIEW

Table 13 APS employment type by location 2019-20

Ongoing Non-ongoing Total

NSW 65 65

Qld 45 45

SA 16 16

Tas 17 17

Vic 96 96

WA 29 29

ACT 2,704 68 2,772

NT 9 9

Overseas 816 17 833

Americas 69 3 72

Asia 368 7 375

South Asia 70 1 71

Southeast Asia 207 5 212

North Asia 91 1 92

Europe 96 1 97

Middle East and Africa 106 106

Multilateral 39 2 41

New Zealand and the Pacific 138 4 142

Total 3,797 85 3,882

Table 14 APS employment type by location 2018-19

Ongoing Non-ongoing Total

NSW Qld SA Tas Vic WA ACT NT Overseas

Americas Asia South Asia Southeast Asia

North Asia Europe Middle East and Africa Multilateral New Zealand and the Pacific Total

66 51 15 18 94 31

2,586 9

844 72 374 72

206 96 105 107

43 143

3,714

2

70

16 4

5

4

1

1

1

5

88

66 51 15 18 96

31

2,656 9

860 76 379 72

210 97 106 107

44 148 3,802

Total 3,294 420 3,714 67 21 88 3,802

206 | | 207

APPENDIXES

DFAT ANNUAL REPORT 2019-20

Table 15 APS Indigenous employment 2019-20 2018-19

Total Total

Ongoing 118 Ongoing 104

Non-ongoing 2 Non-ongoing 1

Total 120 Total 105

Total

SES Band 2 1

SES Band 1 5 SES Band 1 6

Exec. Level 2 9 Exec. Level 2 5

Exec. Level 1 19 Exec. Level 1 22

APS Level 6 19 APS Level 6 12

APS Level 5 37 APS Level 5 26

APS Level 4 18 APS Level 4 16

APS Level 3 4 APS Level 3 8

Graduate 8 Graduate 10

Total

Total 120 Total 105

Table 16 APS employment arrangements 2019-20

SES Non-SES Total

Enterprise agreement 3,558 3,558

Individual flexibility arrangements 0

Australian workplace agreements 0

Common law contracts 0

Determinations under subsection 24(1) 293 29 322 of the Public Service Act 1999 Total 293 3,587 3,880

The Secretary and the Director General of the Australian Safeguards and Non-proliferation Office have not been included in the above figures as they are statutory appointments

APPENDIX 1: STAFFING OVERVIEW

Table 17 APS employment salary ranges by classification level 2019-20

Minimum Salary Maximum Salary

SES 3 $252,123 $386,560

SES 2 $228,652 $291,480

SES 1 $177,294 $245,491

Med 5 $255,316 $255,316

Med 4 $209,222 $247,770

Med 3 $146,120 $203,373

EL 2 $127,067 $194,702

EL 1 $104,903 $165,986

APS 6 $83,900 $133,986

APS 5 $77,619 $128,748

APS 4 $70,390 $77,619

APS 3 $62,816 $77,259

APS 2 APS 1 Graduate $67,124 $70,610

* Includes annualised shift penalties

** Includes Executive Level 2 staff deployed to Head of Mission SES positions overseas

*** The Secretary and the Director General of the Australian Safeguards and Non-proliferation Office have not been included in the above figures as their remuneration is set by Prime Ministerial determinations and the Remuneration Tribunal respectively

Table 18 APS performance pay by classification level 2019-20

Number of employees receiving performance

pay

Aggregated (sum total) of all payments made ($)

Average of all payments made ($) Minimum

payment made ($)

Maximum payment made ($)

SES 3 - - - - -

SES 2 - - - - -

SES 1 - - - - -

EL 2 378 1,086,943 2,875 988 3,526

EL 1 880 2,024,413 2,300 1,007 2,765

APS 6 461 851,941 1,848 522 2,141

APS 5 519 824,565 1,589 536 1,659

APS 4 - - - - -

APS 3 32 40,619 1,269 570 1,369

APS 2 - - - - -

APS 1 - - - - -

Other - - - - -

Total 2,270 4,828,481

Note: SES employees in DFAT do not receive performance pay. Non-SES staff who have worked 100 days at their APS level and are not on probation, are eligible to receive a pay point progression if they receive a rating of performing well or above. If they are at the top of their substantive APS level and meet the above criteria, they are eligible to receive a two per cent payment in lieu of a pay point progression

| 209 208 |

APPENDIXES

DFAT ANNUAL REPORT 2019-20

APPENDIX 2: EXECUTIVE REMUNERATION

Remuneration policies and practices SES staff are remunerated via determinations made under subsection 24 (1) of the Public Service Act. The Secretary is the delegate for any changes made to the remuneration provided by the determinations. The remuneration of the Secretary and the Director General of the Australian Safeguards and Non-proliferation Office is determined by the Remuneration Tribunal.

All other highly paid personnel are remunerated under the terms set out in the DFAT Enterprise Agreement 2019.

‘Other short-term benefits’ include overseas allowances, accommodation and fringe benefits tax paid on behalf of APS employees posted overseas. Employees posted overseas are remunerated in accordance with the department’s ‘overseas conditions of service’ framework. The framework exists to compensate for the differences in locations such as cost of living, hardship and security environment. It also addresses additional costs incurred, such as family medical and educational costs, to ensure posted staff are not disadvantaged.

The department provides accommodation for staff and their families for the duration of their posting. While staff and families benefit from this provision, they do not receive direct remuneration for rental costs. Instead, relevant allowances factor in staff contributions for rent and utilities. The value of the rents is determined by the location of posting rather than the work or performance of individual staff.

The number of staff and reported value of total remuneration in Tables 22 and 23 reflect the high property costs and consequent rental costs in many of the 111 locations of our posts, such as Hong Kong, Moscow or New York.

The total remuneration reported also covers the full rental value of properties used by ambassadors and high commissioners. It does not recognise that most official residences have a residential component and a working component, which is used to support Australian Government objectives, including engagement with local political and business representatives and visiting Australian ministers.

Remuneration governance arrangements The department’s Performance, Risk and Resourcing Committee, chaired by the Secretary, is responsible for assessing and reallocating resources across the department.

The department adjusts overseas allowances fortnightly in response to changes to the overseas environment and foreign exchange movements based on a common methodology used by all APS agencies with staff posted to Australian posts. These adjustments draw on data fr om an independent commercial provider (Conditions Abroad International ECA).

Key management personnel The department’s key management personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the activities of the department. The department has determined the key management personnel to be the Secretary, Deputy Secretaries, Head of the Office of the Pacific, Chief People Officer, Chief Risk Officers and Chief Finance Officer.

APPENDIX 2: EXECUTIVE REMUNERATION

Table 19 Key management personnel Name Position title Terms as KMP

Frances Adamson Secretary 1 July 2019 - 30 June 2020

Penny Williams Deputy Secretary 1 July 2019 - 30 June 2020

Ewen McDonald Head, Office of the Pacific 1 July 2019 - 30 June 2020

Tony Sheehan Deputy Secretary 1 July 2019 - 30 June 2020

Richard Maude Deputy Secretary 1 July 2019 - 17 January 2020

Christopher Langman Deputy Secretary 1 July 2019 - 30 June 2020

Clare Walsh Deputy Secretary 1 July 2019 - 30 June 2020

Justin Hayhurst Deputy Secretary 16 March 2020 - 30 June 2020

Murali Venugopal Chief Finance Officer 1 July 2019 - 30 June 2020

Daniel Sloper Chief People Officer 1 July 2019 - 30 June 2020

Suzanne McCourt Chief Risk Officer 1 July 2019 - 30 June 2020

Angela Robinson Chief Risk Officer 1 July 2019 - 19 January 2020

The following tables are prepared on an accruals basis.

Table 20 Key management personnel remuneration for the reporting period

2020 $

Short-term benefits Base salary 3,597,229

Bonus -

Other benefits and allowances 207,278

Total short-term benefits 3,804,507

Superannuation 621,976

Total post-employment benefits 621,976

Other long-term benefits -

Long service leave 153,587

Total other long-term employee benefits 153,587

Termination benefits -

Total key management personnel remuneration 4,580,070

In accordance with the PGPA Rule, this information is disaggregated in table 21.

Table 21 Key management personnel remuneration 2019-20 Short-term benefits Post-

employment benefits Other long-term benefits

Termination benefits Total remuneration

Other Other

Name

Position title

Base salary Bonuses

benefits and

allowances Superannuation contributions

Long service leave

long-term

benefits

Frances Secretary 781,298 - 18,335 113,195 26,840 - - 939,668

Adamson Penny Deputy 317,465 - 25,941 60,649 12,596 - - 416,651

Williams Secretary Ewen Head, Office 350,723 - 32,579 65,552 15,264 - - 464,118

McDonald of the Pacific Tony Deputy 399,593 - - 69,546 14,737 - - 483,876

Sheehan Secretary Richard Deputy 208,347 - 14,641 38,041 11,645 - - 272,674

Maude Secretary

Christopher Deputy 299,776 - 26,401 57,275 13,904 - - 397,356

Langman Secretary Clare Deputy 333,922 - 25,941 60,098 11,585 - - 431,546

Walsh Secretary

Justin Deputy 99,257 - 6,658 17,187 22,678 - - 145,780

Hayhurst Secretary Murali Chief 295,267 - - 44,069 7,330 - - 346,666

Venugopal Finance Officer

Daniel Chief 251,220 - 23,648 49,345 9,295 - - 333,508

Sloper People

Officer

Suzanne Chief Risk 178,267 - 19,685 30,565 4,989 - - 233,866

McCourt Officer

Angela Chief Risk 81,734 - 13,449 16,454 2,724 - - 114,361

Robinson Officer Total 3,597,229 - 207,278 621,976 153,587 -

- 4,580,070

NOTE: Some figures are impacted by the duration of service as KMP. Table 19 provides details of the length of service for officers that were classified as KMP. Other benefits and allowances include car parking, car and language allowances, overseas-related allowances and fringe benefits tax expenses

210 | | 211

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DFAT ANNUAL REPORT 2019-20

Table 22 Senior executive staff remuneration 2019-20

Remuneration Band Number of SES

Short-term Benefits

Post

Employment Benefits Other Long-term Benefits Termination Benefits

Average TOTAL REMUNERATION ($)

Average Base Salary ($)

Average Bonuses ($)

Average Other Benefits and Allowances Average Superannuation

Contributions ($)

Average

Long Service Leave ($)

Average Other

Long-term Benefits ($)

Average Termination Benefits ($)

Overseas Housing Allowances ($)

Other ($)

Excluding overseas housing allowances

($)

Including overseas housing allowances

($)

Under 51 80,354 57 1,604 12,932 20,578 5,748 - 2,261 121,929 123,534 $220,000 225,001 - 6 179,447 - - 19,732 33,551 7,451 - - 240,181 240,181 245,000 245,001 - 54 192,502 - 1,258 25,914 36,443 5,890 - - 260,750 262,007 270,000 270,001 - 21 184,048 - 6,913 30,577 35,939 7,595 - 15,976 274,136 281,048 295,000 295,001 - 12 206,855 - 20,588 33,875 39,059 8,573 - - 288,363 308,951 320,000 320,001 - 25 217,531 116 13,764 46,330 40,818 9,792 - - 314,588 328,352 345,000 345,001 - 8 215,368 - 7,588 67,127 38,649 31,348 - - 352,491 360,079 370,000 370,001 - 7 209,199 - 29,028 107,755 40,374 110 - - 357,438 386,466 395,000 395,001 - 5 202,251 - 46,845 106,207 37,800 9,408 - - 355,666 402,511 420,000 420,001 - 8 207,565 364 43,815 127,696 37,897 9,307 - - 382,828 426,643 445,000 445,001 - 6 199,386 - 94,155 125,636 36,132 6,185 - - 367,338 461,493 470,000 470,001 - 9 193,198 - 90,929 156,550 36,228 6,413 - - 392,389 483,318 495,000 495,001 - 8 216,656 - 97,126 145,921 41,201 8,572 - - 412,350 509,476 520,000 520,001 - 7 195,058 - 105,277 189,515 37,850 6,075 - - 428,499 533,775 545,000 545,001 - 10 206,243 - 116,120 192,694 36,250 8,161 - - 443,348 559,469 570,000 570,001 - 5 214,803 - 105,315 213,254 40,672 10,871 - - 479,599 584,914 595,000 595,001 - 4 185,745 - 194,281 179,848 34,716 8,523 - - 408,832 603,113 620,000 620,001 - 8 232,049 - 145,658 208,945 40,334 6,514 - - 487,842 633,499 645,000 645,001 - 5 214,359 - 234,264 165,918 40,446 4,985 - - 425,709 659,973 670,000 670,001 - 2 218,693 - 154,545 261,763 40,697 7,294 - - 528,447 682,992 695,000 695,001 - 4 202,644 - 170,275 288,982 37,318 6,156 - - 535,099 705,375 720,000 720,001 - 2 231,221 - 202,662 258,154 42,508 7,690 - - 539,573 742,235 745,000 745,001 - 2 307,124 - 200,824 183,426 49,925 11,337 - - 551,812 752,636 770,000 770,001 - 5 232,228 - 311,249 193,681 45,441 7,828 - - 479,178 790,427 795,000 795,001 - 3 222,471 - 275,026 269,164 42,689 8,119 - - 542,443 817,469 820,000 820,001 - 1 285,846 - 118,282 362,283 49,568 6,027 - - 703,724 822,006 845,000 845,001 - 5 259,392 - 363,424 180,187 45,302 8,464 - - 493,345 856,769 870,000 895,001 - 1 205,220 - 284,120 375,341 38,096 5,482 - - 624,140 908,260 920,000 920,001 - 2 262,410 - 368,662 229,247 48,625 24,543 - - 564,826 933,488 945,000 970,001 - 1 241,215 - 565,621 94,447 58,269 14,323 - - 408,255 973,876 995,000 995,001 - 2 247,215 - 284,571 425,718 42,933 7,283 - - 723,149 1,007,720 1,020,000 1,045,001 - 1 321,679 - 360,242 303,061 53,468 11,644 - - 689,852 1,050,093 1,070,000 1,070,001 - 1 265,524 - 608,058 153,302 53,999 9,500 - - 482,324 1,090,382 1,095,000 1,095,001 - 2 221,612 - 667,319 180,227 36,596 6,835 - - 445,271 1,112,590 1,120,000

1,120,001 - 1 251,407 - 670,260 152,809 56,145 8,294 - - 468,655 1,138,916 1,145,000 1,420,001 - 1 389,844 - 771,844 196,066 69,359 13,702 - - 668,971 1,440,815 1,445,000 1,445,001 - 1 212,446 - 982,968 204,225 40,934 7,807 - - 465,413 1,448,381 1,470,000 1,720,001 - 1 256,376 - 1,273,068 152,867 48,796 6,303 - - 464,341 1,737,409 1,745,000 1,745,001 - 1 255,445 - 1,221,367 235,113 47,660 7,194 - - 545,412 1,766,779 1,770,000 2,370,001 - 1 317,659 - 1,897,464 111,243 49,267 8,568 - - 486,737 2,384,201 2,395,000

Employees posted overseas reside in Commonwealth leased or owned residences,or privately leased residences and the rental value (described in the table as overseas housing allowance) is not received by the individual as direct remuneration. Residences, in particular those used by ambassadors and high commissioners, are used for official events and to conduct official Australian Government business. The amount included for Average Other Benefits and Allowances does not include tax paid on non-reportable fringe benefits (included in 2018-19). Employee rent and utlity contributions are factored into relevant allowances

212 |

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2: EXECUTIVE REMUNERATION

Table 23 Other highly paid staff remuneration 2019-20

Remuneration Band Number of Other Highly

Paid Staff

Short-term Benefits

Post

Employment Benefits Other Long-term Benefits Termination Benefits Average TOTAL REMUNERATION ($)

Average Base Salary ($)

Average Bonuses ($)

Average Other Benefits and Allowances Average Superannuation

Contributions ($)

Average

Long Service Leave ($)

Average Other

Long-term Benefits ($)

Average Termination Benefits ($)

Overseas Housing Allowances ($)

Other ($)

Excluding overseas housing allowances

($)

Including overseas housing allowances

($)

225,001 - 245,000 65 106,360 1,442 36,069 66,605 18,711 5,697 - - 198,814 234,882

245,001 - 270,000 95 103,393 1,395 51,199 79,325 17,836 4,251 - 1,400 207,600 258,799

270,001 - 295,000 85 103,705 1,639 59,802 94,719 18,562 3,608 - - 222,232 282,034

295,001 - 320,000 89 112,048 1,954 65,897 101,654 20,294 3,839 - 1,747 241,535 307,432

320,001 - 345,000 72 115,891 1,856 79,429 110,341 20,418 3,727 - - 252,234 331,663

345,001 - 370,000 57 121,600 2,212 81,968 126,584 22,089 3,704 - - 276,188 358,156

370,001 - 395,000 56 128,145 2,245 89,252 136,165 22,487 4,012 - - 293,054 382,307

395,001 - 420,000 41 127,675 2,077 97,038 152,942 23,361 4,210 - - 310,266 407,303

420,001 - 445,000 37 134,066 2,031 114,731 151,758 25,329 4,660 - - 317,844 432,575

445,001 - 470,000 23 150,916 2,247 115,248 156,710 27,040 5,203 - - 342,115 457,363

470,001 - 495,000 18 151,259 1,723 115,332 177,312 27,196 6,222 - - 363,712 479,044

495,001 - 520,000 13 149,381 2,156 121,157 199,315 26,911 4,580 - - 382,343 503,499

520,001 - 545,000 10 153,077 1,225 127,717 211,417 28,125 8,396 - - 402,240 529,957

545,001 - 570,000 6 150,444 2,903 138,480 231,511 30,142 4,093 - - 419,092 557,572

570,001 - 595,000 9 160,487 2,007 188,082 197,665 30,658 5,152 - - 395,970 584,052

595,001 - 620,000 5 184,843 582 147,941 229,904 28,957 14,520 - - 458,805 606,747

620,001 - 645,000 5 158,329 1,745 215,976 216,516 33,209 3,959 - - 413,758 629,734

670,001 - 695,000 2 167,695 - 211,980 270,168 30,573 2,580 - - 471,016 682,995

745,001 - 770,000 1 186,681 - 129,087 395,802 31,236 5,655 - - 619,374 748,461

1,145,001 - 1,170,000 1 135,753 2,384 853,289 133,423 29,922 5,088 - - 306,571 1,159,860

Employees posted overseas reside in Commonwealth leased or owned residences,or privately leased residences and the rental value (described in the table as overseas housing allowance) is not received by the individual as direct remuneration. Residences, in particular those used by ambassadors and high commissioners, are used for official events and to conduct official Australian Government business. The amount included for Average Other Benefits and Allowances does not include tax paid on non-reportable fringe benefits (included in 2018-19). Employee rent and utlity contributions are factored into relevant allowances

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DFAT ANNUAL REPORT 2019-20

APPENDIX 3: AGENCY RESOURCE STATEMENT Table 24 Department of Foreign Affairs and Trade Resource Statement 2019-20

Actual Available

Appropriation for 2019-20 $’000

Payments made 2019-20 $’000

Balance remaining 2019-20 $’000

Ordinary annual services1 Departmental appropriation Total

1,714,187 1,714,187

1,770,788 1,770,788

(56,601) (56,601)

Administered expenses Outcome 1 3,970,895 3,970,566

Outcome 2 313 111

Administered capital budget Payments to corporate entities2 Total

528

139,534 4,111,270

457

139,534 4,110,668

Total ordinary annual services [A] 5,825,457 5,881,456

Other services Departmental non-operating3 Equity injections Total

91,874 91,874

76,640 76,640

15,234 15,234

Administered non-operating4 Administered assets and liabilities 605,072 -

Total 605,072 -

Total other services [B] 696,946 76,640

Total available annual appropriations [A+B] 6,522,403 5,958,096

Special appropriations

Special appropriations limited by criteria/entitlement

Public Governance, Performance and Accountability 1,861

Act 2013-s77 Administered

Total special appropriations [C] 1,861

Special accounts5 Opening balance 337,822

Appropriation receipts 83,041

Appropriation receipts from other entities 70,060

Non-appropriation receipts to Special 32,706

Accounts Payment made 188,269

Total special accounts [D] 523,629 188,269

Total resourcing [A+B+C+D] 7,046,032 6,148,226

Less appropriations drawn from annual or (153,101) -

special appropriations above and credited to special accounts and/or payments to corporate entities through (139,534) (139,534)

annual appropriations

Total net resourcing and payments for DFAT 6,753,397 6,008,692

1. Includes Supply Act (No.1) 2019-20, Appropriation Act (No.1) 2019-20, Appropriation Act (No.3) 2019-20 and Appropriation (Coronavirus Economic Response Package) Act (No.1) 2019-20. This also includes prior year departmental appropriation and section 74 Retained Revenue Receipts 2. ‘Corporate entities’ are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act 2013 3. Supply Act (No.2) 2019-20 and Appropriation Act (No.2) 2019-20. This also includes prior year equity injections available for use 4. Includes appropriations carried forward from previous years to extinguish multiyear agreements 5. Excludes Special Public Money held in accounts like Consular Services Account (CSA), Services for Other Entities and Trust

Moneys accounts (SOETM) and EXPO Dubai 2020

214 |

APPENDIX

3: AGENCY RESOURCE STATEMENT

Table 25 Expenses for Outcome 1

Outcome 1: The advancement of Australia’s international strategic, security and economic interests including through bilateral, regional and multilateral engagement on Australian Government foreign, trade and international development policy priorities

Program 1.1: Foreign Affairs and Trade Operations Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) Expenses not requiring appropriation in the Budget year²

Special appropriations Other services (Appropriation Act No. 2 and 4)

9,401 1,375 100 -

7,917 7,335 7

-

1,484 (5,960) 93 -

Departmental expenses -

Budget*

2019-20 $’000 (a)

Actual Expenses Variation 2019-20

$’000 (b)

2019-20 $’000 (a - b)

Total for program 1.1 897,825 892,019 5,806

Departmental appropriation1 734,727 723,615 11,112

Expenses not requiring appropriation in the Budget year2 152,222 153,145 (923)

Program 1.2: Official Development Assistance Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) Expenses not requiring appropriation in the Budget year²

3,151,642 500 3,151,229 3,486

413

(2,986)

Departmental expenses

Total for program 1.2 3,411,120 3,413,693 (2,573)

Departmental appropriation¹ 258,978 258,978 -

Program 1.3: Official Development Assistance - Multilateral Replenishments Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) Other services (Appropriation Act No. 2 and 4)

Expenses not requiring appropriation in the Budget year²

227,794 605,072 328,939

243,952 -

345,867

(16,158) 605,072 (16,928)

Total for Program 1.3 1,161,805 589,819 571,986

Program 1.4: Payments to International Organisations Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) 442,991 384,447 58,544 Total for Program 1.4 442,991 384,447 58,544

Program 1.5: New Colombo Plan - Transforming Regional Relationships Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) Other services (Appropriation Act No. 2 and 4)

50,933 -

48,998 -

1,935 -

Total for Program 1.5 50,933 48,998 1,935

Program 1.6: Public Information Services and Public Diplomacy Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) 11,304 9,821 1,483

Total for Program 1.6 11,304 9,821 1,483

Program 1.7: Programs to Promote Australia’s International Tourism Interests Administered expenses Tourism Australia - Corporate Commonwealth Entity Ordinary annual services (Appropriation Act Nos. 1 and 3)

139,534 60,000

139,534 60,000

-

-

Total for Program 1.7 199,534 199,534 -

| 215

APPENDIXES

DFAT ANNUAL REPORT 2019-20

Outcome 1: The advancement of Australia’s international strategic, security and economic interests including through bilateral, regional and multilateral engagement on Australian Government foreign, trade and international development policy priorities

Outcome 1 Totals by appropriation type Administered Expenses

Budget*

2019-20 $’000 (a)

Actual Expenses 2019-20 $’000

(b)

Variation

2019-20 $’000 (a - b)

Ordinary annual services (Appropriation Act Nos. 1 and 3) Corporate Commonwealth Entity Other services (Appropriation Act No. 2 and 4) Expenses not requiring appropriation in the Budget year² Special appropriations

3,954,065 139,534 605,072 330,814

100

3,906,364 139,534 -

356,688 7

47,701 -

605,072 (25,874) 93

Departmental expenses Departmental appropriation¹ Expenses not requiring appropriation in the Budget year² 993,705

152,222

982,593 153,145

11,112 (923)

Total expenses for Outcome 1 6,175,512 5,538,331 637,181

2018-19 2019-20

Average staffing level (number) 3,702 3,691

* Full year budget, including any subsequent adjustments made to the 2019-20 budget through 2019-20 Portfolio Additional Estimates

1. Departmental appropriation combines ‘ordinary annual services (Appropriation Act No.1, Act No.3 and Coronavirus Economic Response Package Act No.1)’ and ‘section 74 revenue receipts’

2. Expenses not requiring appropriation in the budget year may include depreciation expenses (excluding right-of-use depreciation which is funded from appropriation), amortisation expenses, make good expenses, audit fees, concessional costs for loans, finance costs, and impairment of financial instruments

Table 26 Expenses for Outcome 2

Outcome 2: The protection and welfare of Australians abroad and access to secure international travel documentation through timely and responsive travel advice and consular and passport services in Australia and overseas

Program 2.1: Consular Services

Budget*

2019-20 $’000

Actual Variation

(a) (b) (a - b)

Expenses 2019-20 $’000 2019-20

$’000

Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) Expenses not requiring appropriation in the Budget year² Special appropriations

200 -

100

149 77 7

51 (77) 93

Departmental expenses Departmental appropriation¹ 106,943 106,925 18

Total for program 2.1 107,243 107,158 85

Program 2.2: Passport Services Administered expenses Expenses not requiring appropriation in the Budget year² Special appropriations

-

2,000

-

1,847

-

153

Departmental expenses Departmental appropriation¹ 245,988 228,033 17,955

Total for program 2.2 247,988 229,880 18,108

216 |

APPENDIX

3: AGENCY RESOURCE STATEMENT

Outcome 2: The protection and welfare of Australians abroad and access to secure international travel documentation through timely and responsive travel advice and consular and passport services in Australia and overseas

Outcome 2 Totals by appropriation type

Budget*

2019-20 $’000

Actual Variation

(a) (b) (a - b)

Expenses 2019-20 $’000 2019-20

$’000

Administered expenses Ordinary annual services (Appropriation Act Nos. 1 and 3) Expenses not requiring appropriation in the Budget year² Special appropriations

200 -

2,100

149 77

1,854

51 (77) 246

Departmental expenses Departmental appropriation¹ 352,931 334,958 17,973

Total expenses for Outcome 2 355,231 337,038 18,193

2018-19 2019-20

Average staffing level (number) 1,058 1,053

* Full year budget, including any subsequent adjustments made to the 2019-20 budget through additional estimates and estimated outcome as published in the 2020-21 Budget

1. Departmental appropriation combines ‘ordinary annual services (Appropriation Act No. 1 & Act No. 3)’

2. Expenses not requiring appropriation in the budget year may include depreciation expenses, amortisation expenses, make good expenses, audit fees, concessional costs for loans, finance costs and impair ment of financial instruments

Table 27 Expenses for Outcome 3

Budget*

2019-20 $’000 (a)

Actual Expenses Variation 2019-20

$’000 (b)

2019-20 $’000 (a - b)

Outcome 3: A secure Australian Government presence overseas through the provision of security services and information and communications technology infrastructure, and the management of the Commonwealth’s overseas property estate

Program 3.1: Foreign Affairs and Trade Security and IT Departmental expenses Departmental appropriation¹ 261,937 262,579 (642)

Total for program 3.1 261,937 262,579 (642)

Program 3.2: Overseas Property Departmental expenses Expenses not requiring appropriation in the Budget year² 35,334 107,024 (71,690) Total for program 3.2 35,334 107,024 (71,690)

Outcome 3 Totals by appropriation type Departmental expenses Departmental appropriation¹ Expenses not requiring appropriation in the Budget year²

261,937 35,334

262,579 107,024

(642)

(71,690)

Total expenses for Outcome 3 297,271 369,603 (72,332)

2018-19 2019-20

Average staffing level (number) 856 853

* Full year budget, including any subsequent adjustments made to the 2019-20 budget through additional estimates and estimated outcome as published in the 2020-21 Budget

1. Departmental appropriation combines ‘ordinary annual services (Appropriation Act No. 1 & Act No. 3)’

2. Expenses not requiring appropriation in the budget year may include depreciation expenses, amortisation expenses, make good expenses, audit fees, concessional costs for loans, finance costs and impair ment of financial instruments

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APPENDIX 5: AUDIT AND RISK COMMITTEE

APPENDIX 4: DEVELOPMENT APPENDIX 5: AUDIT AND RISK

PROGRAM EXPENDITURE COMMITTEE

The following table provides details of estimated spend by country and region for 2019-20. Actuals are published on the departmental website in December in Australia’s Official Development Assistance: Statistical Summary following collection of information from other government departments and delivery partners including detailed breakdowns of geographic flows of expenditure.

name meetings

attended / total number of meetings

remuneration

Member Qualifications, knowledge, skills or experience Number of Total annual

Myanmar 42.1 38.4 80.4 Wendy Jarvie

Laos 20.6 14.6 35.2

Mongolia 5.9 3.8 9.7

Southeast and East Asia Regional - 74.2 74.2

Total Southeast and East Asia 562.7 243.7 806.5

Afghanistan 80.0 2.1 82.1

Bangladesh 38.5 29.2 67.7

Sri Lanka 19.9 7.2 27.1

Nepal 9.1 12.4 21.5

Bhutan 2.1 4.2 6.4

Maldives 1.8 0.8 2.6

Pakistan 19.0 10.7 29.7

South and West Asia Regional - 22.6 22.6

Total South and West Asia 170.4 89.1 259.5

Sub-Saharan Africa 31.8 79.5 111.3

The Middle East and North Africa (includes the 20.5 60.2 80.7 Palestinian Territories)3 Latin America and the Caribbean - 3.3 3.3

Donna

Other ODA not attributed to particular countries - 944.0 944.0 Hardman or regions4 Total Bilateral and Regional or Global 1,595.0 1,846.2 3,441.2

Departmental (ODA) - - 259.0

Adjustments5 - - -100.3

Grand Total* 1,595.0 1,846.2 3,599.9

*Differences due to rounding 1. Regional totals include amounts attributable to the region but not a specific country 2. Federated States of Micronesia, Palau and Republic of Marshall Islands 3. Includes Iraq, Syria and other flows to the region 4. Includes payments to some UN and Commonwealth organisations and UN peacekeeping operations. The ODA eligible

components of cash payments to the International Development Association, Asian Development Fund, Global Environment

Professor Sargeant is Professor of Practice in Defence and Strategic Studies, and Head of the Strategic and Defence Studies Centre at the Coral Bell School of Asia Pacific Studies at the Australian National University. He retired from the APS in October 2017 after many years working on the development and implementation of Defence policy. As the associate secretary of Defence from September 2013 to October 2017, he oversaw implementation of the First Principles Review, a major reform of Defence organisation and enterprise governance, planning, performance and risk management.

Ms James is a professional company director and independent committee member. She has more than 30 years’ experience in the global financial services industry specialising in governance, risk and compliance. She is currently an independent director on the Commonwealth Bank’s superannuation and investments subsidiaries, and an independent member on the compliance committees of a number of large investment managers. She is a Fellow of the Australian Institute of Company Directors.

Dr Jarvie is a performance measurement and aid management professional. She is currently Adjunct Professor, Public Service Research Group, School of Business at the University of NSW (Canberra). She has 22 years of APS experience, including as a deputy secretary in the departments of Education, Science and Training, and Education, Employment and Workplace Relations. She has extensive experience in evaluations and strategy development and worked for the World Bank in Washington, Vietnam and the Pacific. She is a member of the Indigenous Evaluation Committee for the National Indigenous Australians Agency, and is chair of the OCHRE evaluation committee for the NSW Department of Aboriginal Affairs. Dr Jarvie was a member of DFAT’s Independent Evaluation Committee for Australian aid (2012-2020).

Ms Hardman is a professional company director with experience in business and IT transformation, change leadership and governance. She has over 30 years’ experience in the global financial services industry specialising in business strategy, general management, and transformational change leadership. She is currently an independent director on two public sector boards, Chairman of the Civil Aviation Safety Authority Board’s Audit and Risk Committee, and consults to the private sector on board performance, enhancement and future-readiness.

8/8 $38,700

8/8 $19,700

Table 28 Total DFAT Official Development Assistance flows by country and region of benefit, 2019-20 Budget Estimate

2019-20 country and region Bilateral $m Regional and

Global $m

Total $m

Country and Region1 Papua New Guinea 512.3 62.5 574.8

Solomon Islands 122.3 36.8 159.2

Vanuatu 41.9 23.1 65.0

Fiji 35.0 20.7 55.7

Samoa 23.6 6.7 30.3

Nauru 21.2 3.6 24.9

Kiribati 20.2 6.9 27.1

Tonga 17.6 7.0 24.6

Tuvalu 6.6 2.6 9.2

North Pacific 2 5.0 3.4 8.4

Niue and Tokelau 1.8 3.0 4.8

Cook Islands 1.9 1.8 3.7

Pacific Regional - 248.3 248.3

Total Pacific 809.5 426.3 1,235.8

Indonesia 255.7 38.0 293.8

Timor-Leste 73.0 25.4 98.3

Philippines 63.7 13.3 77.0

Vietnam 58.4 15.6 74.1

Cambodia 43.4 20.5 63.8

Brendan Sargeant (Chair)

Penni James

8/8 $21,470

8/8 $19,700

Facility, Heavily Indebted Poor Countries Initiative and the Montreal Protocol Multilateral Fund are also included 5. Adjustments are necessary for reconciliation of ODA accrual to cash basis and include returns from prior years and returns of AIPRD loans. Adjustments are not an appropriation and are not listed in the PBS

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APPENDIX 6: WORKPLACE HEALTH AND SAFETY

Member name

Qualifications, knowledge, skills or experience Number of meetings attended / total number

of meetings

Total annual remuneration

APPENDIX 6: WORKPLACE HEALTH AND SAFETY

Chris Ramsden Mr Ramsden is a highly experienced APS officer 6/6 $13,003

(now retired), who specialises in corporate and Health and safety management in the department

enabling service roles. He has served as chief financial officer for the Australian Customs Service The health and safety of our staff and those helping to achieve our objectives is a high priority. This

and ComSuper. He was also chief operations officer priority is also a complex undertaking in a global operating context, which this year was made more

for the Clean Energy Regulator and was responsible for managing all corporate support functions difficult by COVID-19 and the 2019-20 bushfires.

(finance, human relations, information technology, project management, risk management, We are committed to building a culture of safety leadership across the department to manage risks,

communications and investigations) for this newly improve work practices and foster attitudes that sustain healthy and safe work environments across formed agency. our network. Tony Sheehan Mr Sheehan joined DFAT as Deputy Secretary 8/8 $0 (Deputy Chair) International Security, Humanitarian and Consular Group on 2 October 2018. He was most recently Work health and safety initiatives and outcomes Commonwealth Counter-Terrorism Coordinator from September 2016. In that position, he was We began implementing initiatives to strengthen work health and safety performance. These included responsible for coordinating Australia’s Counter- a new annual survey and risk dashboard, a revitalised management system, and specific measures to Terrorism arrangements for the Prime Minister and Minister for Home Affairs, working in close respond to COVID-19 and the bushfires. partnership with Commonwealth and state and territory agencies. Before that he served as deputy We implemented a functional review, through which we increased the number of technically qualified director-general in ASIO, chief operating officer in the Attorney-General’s Department and first staff managing work health and safety and rehabilitation management functions. This resulted in assistant secretary, homeland and border security greater operational responsiveness to COVID-19 and the bushfires, a more sustainable rehabilitation in the Department of the Prime Minister and Cabinet. Before this, he spent 19 years at DFAT and management caseload, a more effective work health and safety management system, and a undertook overseas postings to Taipei, Beijing and centralised wellness unit. Jakarta, and held several SES positions in Canberra with responsibility for counter-terrorism, people smuggling and other transnational issues. Revitalising the work health and safety management system The department continued addressing the findings from our 2018 audit of the department’s work Jamie Isbister Mr Isbister has more than 25 years’ experience in 5/8 $0 international development and the humanitarian health and safety management system. We revised our incident response procedure and improved area through senior roles across both government our investigation analysis model to assist in the prevention of incidents recurring. We integrated these and non-government sectors. He was the AustralianGovernment’s humanitarian coordinator from 2014 processes into the work health and safety incident reporting system workflow. to 2019 and is currently First Assistant Secretaryfor DFAT’s Economic Growth and SustainabilityDivision. He is also Australia’s Ambassador for the Work health and safety annual survey and risk dashboard Environment and leads Australia’s international Between July and December our global network completed the latest work health and safety annual negotiations on climate change. survey, which sought to identify hazards and ensure these are managed effectively. We continued work Julie Ms Heckscher is currently First Assistant Secretary 6/8 $0 to improve safety outcomes, drawing on consolidated data from physical inspections of workplaces Heckscher for DFAT’s Southeast Asia Division. She has responsibility for Australia’s relationships with as well as work activity reviews to assess risks and identify hazards. For the first time we asked our Timor-Leste and the 10 ASEAN member countries, senior leadership to complete a due diligence self-assessment which will assist these individuals with including Australia’s bilateral development assistance programs to those countries. Ms complying with their legislated duties. Heckscher is also a member of DFAT’s Aid Governance Board. She has held a number A WHS risk dashboard that amalgamated our risk registers was completed in March 2020. This permits of other senior DFAT positions, which include heading up the Americas Division and serving in the department to provide effective assurance reporting on the WHS risk profile and the development senior positions at Australian diplomatic posts in of targeted strategies to eliminate or minimise those risks. Singapore, Ottawa and Moscow. Ms Heckscher has also served in a number of legal roles in DFAT, including as the corporate counsel. Australian bushfiresThe department used a combination of mitigation strategies to respond to air quality hazards from the bushfires. We worked with our property team and building management to ensure better internal air quality in our office buildings compared to the outside environment. 220 | | 221

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COVID-19 Consistent with government requirements and Australian Public Service Commission guidance, the department implemented a range of measures to respond to COVID-19, including:

• physical distancing

• hygiene, cleaning and control measures

• working from home arrangements.

As conditions overseas deteriorated, we returned some staff and dependants to Australia to protect their health and safety, consistent with travel advice to the Australian public not to travel overseas.

We took a risk-managed and phased approach to returning staff to the office, embedding flexible work, physical distancing and hygiene practices, and undertaking additional cleaning.

Reporting requirements under the Work Health and Safety Act 2011 • Incident notification—12 incidents wer e notified to Comcare under Part 3 of the Act.

• Enforceable undertakings—no directions were given to the department under Part 11, Section 217 of the Act.

• Securing compliance—one external investigation was finalised under Part 9 of the Act.

• Enforcement measures—no notices were issued under Part 10, Section 191 of the Act.

Rehabilitation management Following a Comcare compliance audit of the Rehabilitation Management System in April 2019, we began implementing corrective actions (in consultation with Comcare). Overall, the department is satisfactorily caring for staff injured in the workplace. Our premium rate for the reporting period remains lower than the Commonwealth average of 0.87 per cent.

Comcare claims accepted 2017-18 2018-19 2019-20

Total number of claims accepted by Comcare 17 16 17

Department premium rate as a percentage of total 0.54 0.47 0.78

departmental wages and salaries

Note: the figures for the total number of claims accepted by Comcare in 2017-18 and 2018-19 have been corrected in the table above, compared to the table which appeared on page 229 of the 2018-19 Annual Report. The ‘total number of claims accepted by Comcare’ and reported in a specific financial year may need to be adjusted based on factors, including:

• date of lodgement until acceptance

• back-dating claims to date of injury

• decisions subject to the Administrative Appeals Tribunal

• reconsideration of claims.

APPENDIX 7: ECOLOGICALLY SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE

APPENDIX 7: ECOLOGICALLY SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE The department’s policy activities and operations accorded with the principles of ecologically sustainable development as required by section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act). Under our three outcomes we:

• contributed to the development of global frameworks supporting ecologically sustainable development, including:

◦ shaping a new global treaty for the conservation and sustainable use of marine biological diversity in areas beyond national jurisdiction (BBNJ), including supporting effective Pacific participation in the BBNJ negotiations

◦ promoting environmental protection in the Antarctic Treaty system

◦ ensuring a precautionary approach is taken to regulation of deep seabed mining

• applied our environmental and social safeguard policy and operational procedures to ensure our development assistance investments were delivered in accordance with the principles of ecologically sustainable development

• conducted assessments in accordance with our Environmental and Social Safeguard framework to determine whether a referral to the Minister for the Environment was required under the EPBC Act. In 2019-20 no projects required referral

• commissioned an independent review of the department’s Environmental and Social Safeguard Policy

• published the Climate Change Action Strategy (2020-2025) to guide integration of climate change action and disaster risk reduction across our development program

• stayed on track to exceed Australia’s commitment to provide $1 billion in climate finance over five years (2015-2020), including our $300 million commitment to the Pacific

• promoted healthy oceans for sustainable development and shared Australia’s marine ecosystems management expertise, including funding and supporting the General Meeting of the International Coral Reef Initiative

• supported sustainable fisheries management and oceans governance at the local, national and regional scale across the Pacific, for economic growth, food security and environmental conservation

• led global efforts to conserve coastal ecosystems, including blue carbon ecosystems (mangroves, tidal marshes and seagrasses), which play a significant role in carbon sequestration and coral reefs

• worked to develop a framework to more systematically consider sustainability and resilience objectives in our operations, secure savings by adopting new technologies, and reduce—where possible—our overall environmental footprint

• ensured sustainable development and environmental performance were considered in applicable property-related decisions in the overseas estate through overarching portfolio environmental policy and environmental management plans

• applied contemporary and cost-effective sustainability measures in all new construction projects and—where possible—benchmarking project specifications to achieve local

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environmental sustainability ratings. We aim to reduce waste to landfill by using Australian prefabricated products

• included sustainability measures in all new construction projects where possible. This included photovoltaic cells, green roofs, energy-efficient lighting, daylight and motion sensors, zoned air-conditioning systems, rainwater harvesting and building management systems

• initiated two large-scale renewable energy pilot projects at posts (currently on hold due to COVID-19)

• expanded our water saving initiatives through a rainwater harvesting project at our post in Islamabad

• continued implementing smart metering strategies to reliably measure and monitor energy consumption. This will help make posts more efficient and reduce energy consumption.

The Energy Efficiency in Government Operations (EEGO) policy sets the minimum energy performance standard for Australian Government buildings to achieve energy targets, ensuring that entities progressively improve their performance through the procurement and ongoing management of energy efficient office buildings and environmentally sound equipment and appliances. Under the policy, agencies must meet the target of no more than 7,500 megajoules (MJ) per person each year for office tenant light and power. In 2019-20 the department met this target, using 7,185 MJ per person.

Table 29 DFAT domestic portfolio EEGO summary data

Classification EEGO Target Units

Year Compliance

with EEGO policy 2016-17 2017-18 2018-19 2019-20

MJ/ Tenant light 7,500 person/ 8,305 7,910 7,343 7,185  and power a year Other MJ/m2/ N/A 541 612 588 565 N/A Buildings a year Note: some of the data in table 29 above differs to that reported in the 2018-19 annual report due to better data collection and validation processes. These processes have been applied to recent historic data to help establish accurate trends

Table 30 DFAT’s domestic portfolio stationary energy consumption

Category of consumption 2016-17 2017-18 2018-19 2019-20

Per cent change

(2018-19 to 2019-20)

Office tenant light and power electricity 34,816,200 31,979,227 29,819,247 29,179,249 -2%

(MJ)

Office gas (MJ) 5,209,922 4,676,612 4,456,126 4,450,126 -0.1%

Other building 814,092 935,620 885,742 850,246 -4% energy (MJ)

APPENDIX 7: ECOLOGICALLY SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE

by efficiency initiatives during the year, together with a drop in building occupation as staff worked from home due to COVID-19. Overall consumption was not significantly different to the previous two years. As the building returns to normal use, we expect the benefits of our efficiency measures to be further realised.

As part of our strategic accommodation planning, we aim to meet the requirements of the Green Lease Schedule Policy: that is, for tenancies of greater than 2,000m2 with a lease term greater than two years, accommodation must meet the ‘A’ grade standard of the Building Owners and Managers Association International guidelines and meet a minimum National Australian Built Environment Rating System (NABERS) rating of 4.5 stars.

Table 31 summarises the department’s green lease agreements across our domestic property portfolio during the reporting period, and—where relevant—the corresponding NABERS ratings.

Table 31 Domestic estate Green Lease Schedule and NABERS ratings

Site Green Lease Schedule

NABERS tenancy rating

Target Current

RG Casey Building, Barton A (gross lease) 4.5 TBC (1)

Nil (lease in place prior to GLS 255 London Circuit(2) 4.5 4.5 development) 40 Allara Street, Canberra City B 4.5 5.0

L2, 747 Collins Street, Melbourne B 4.5 4.5

44 Sydney Avenue, Barton C2 4.5 TBC(1)

1. Rating yet to be formally completed

2. Voluntary rating

Compared to the previous reporting period, the number of domestic and international trips originating in Australia reduced by 32 and 30 per cent respectively (a total of 4,132 trips). This was mainly due to COVID-19.

All Australian passports issued during the reporting period were printed on paper produced from wood pulp certified as sustainable and ethically-sourced.

Total energy (MJ) 40,840,214 37,591,459 35,161,115 34,479,622 -2%

MJ = megajoule

The RG Casey Building is the department’s main source of domestic energy consumption. We monitor this closely and during the year worked with the building owner’s representative to identify, implement and review energy efficiency measures. The building’s energy consumption increased significantly over January and February 2020 to prevent smoke build-up from bushfires. This increase was largely offset

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APPENDIX 8: PARLIAMENTARY COMMITTEES OF INQUIRY This appendix contains information on the department’s engagement with parliamentary committees of inquiry during the reporting period.

Departmental officers appeared as witnesses before the Joint Standing Committee on Treaties (JSCOT) in relation to nine proposed treaty actions. This figure does not include occasions on which the department’s International Law: Advising and Treaties Section staff attended JSCOT hearings in an advisory or observer capacity.

In October the department made a submission to the Senate Foreign Affairs, Defence and Trade References Committee in relation to its inquiry into Australia’s declarations made under certain international laws. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Foreign_Affairs_Defence_and_ Trade/EastTimor/Submissions/

The committee’s report can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Foreign_Affairs_Defence_and_ Trade/EastTimor/Report

In October the department and Austrade made a submission to the Senate Select Committee inquiry on the effectiveness of the Australian Government’s Northern Australia agenda. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/NorthernAustraliaAgenda/ NorthernAustraliaAgenda

On 9 October JSCOT tabled its report on the:

• Comprehensive Economic Partnership Agreement between the Government of Australia and the Government of Indonesia

• Free Trade Agreement between Australia and Hong Kong, China

• Investment Agreement between the Government of Australia and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China.

The department coordinated the government’s response to the report which was tabled on 19 February 2020. The report and the government response can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties/Completed_inquiries

On 3 December JSCOT tabled its report on the:

• Agreement between Australia and the Oriental Republic of Uruguay on the Promotion and Protection of Investments

• United Nations Convention on Transparency in Treaty-based Investor-State Arbitration

• Convention establishing the Square Kilometre Array Observatory.

The committee’s report can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties/InvestmentsUruguay/Report_188

The department coordinated the government response which was tabled on 16 June 2020 and can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties/InvestmentsUruguay/ Government_Response

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APPENDIX

8: PARLIAMENTARY COMMITTEES OF INQUIRY

On 20 February the department tabled a portfolio submission to the Joint Standing Committee on Foreign Affairs, Defence and Trade - Trade Sub-committee inquiry into Australia activating greater trade and investment with Pacific island countries. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Foreign_Affairs_Defence_and_Trade/ TradewithPacific/Submissions

In March the department and Austrade made a submission to the Senate Economics References Committee in relation to its inquiry into foreign investment proposals. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Foreigninvestment/ Submissions

In March the department made a submission to the Human Rights Sub-committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade, in relation to its inquiry into the use of targeted sanctions to address human rights abuses. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Foreign_Affairs_Defence_and_Trade/ MagnitskyAct/Submissions

The department provided input to the Department of Defence submission (dated 3 March 2020) to the Joint Standing Committee on Foreign Affairs Defence and Trade - Defence Sub-committee inquiry into Australia’s defence relationships with Pacific Island nations. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Foreign_Affairs_Defence_and_Trade/ PacificIslandnations/Submissions

On 25 March the department made a submission to the Senate Select Committee on Temporary Migration inquiry into the impact temporary migration has on the Australian economy, wages and jobs, social cohesion and workplace rights and conditions. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Temporary_Migration/ TemporaryMigration/Submissions

On 11 May the department made a submission to the Senate Select Committee inquiry into the Australian Government’s response to the COVID-19 pandemic. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/COVID-19/COVID19

On 30 June the department made a submission to the Joint Standing Committee on Foreign Affairs, Defence and Trade - Foreign Affairs and Aid Sub-Committee inquiry into strengthening Australia’s relationships with countries in the Pacific region. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Foreign_Affairs_Defence_and_Trade/ PacificRelationships/Submissions

On 30 June the department made a joint portfolio submission with Austrade, Tourism Australia and Export Finance Australia to the Joint Standing Committee on Foreign Affairs, Defence and Trade inquiry into the implications of the COVID-19 pandemic for Australia’s foreign affairs, defence and trade. The submission can be found at: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Foreign_Affairs_Defence_and_Trade/ FADTandglobalpandemic/Submissions

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APPENDIX 9: ADVERTISING AND MARKET RESEARCH As required under section 311A of the Commonwealth Electoral Act 1918, following is a list of agencies and organisations contracted by the department (including at overseas posts) to provide advertising and market research services. The list includes payments above $14,000 (GST inclusive).

The department launched the Smartraveller ‘check your travel smarts’ campaign (phase V) in February 2020. We ran Phase 1 of the COVID-19 campaign in response to COVID-19 from 23 March to 30 June. Further information on this campaign is available at dfat.gov.au and smartraveller.gov.au and in the reports on Australian Government advertising prepared by the Department of Finance (finance.gov.au).

Table 32 Advertising and market research

Account name Service provided Program Amount

Advertising agencies Clemenger BBDO (Melbourne) P/L Smartraveller ‘check your travel 2.1 1,572,738

smarts’ campaign (Phase V) and COVID-19 Phase 1 - advertising services

Market research organisations Kantar Public (Taylor Nelson Sofres) Smartraveller ‘check your travel 2.1 66,550

smarts’ campaign (Phase V) - market research services for culturally and linguistically diverse audiences

Kantar Public (Taylor Nelson Sofres) Market research for Services Export 1.1 69,300 Action Plan to help boost the competitiveness of the Australian economy

Hall & Partners Pty Ltd Smartraveller ‘check your travel 2.1 118,624

smarts’ campaign (Phase V) and COVID-19 Phase 1 - market research services (benchmarking & tracking)

Orima Research Pty Ltd Passport client satisfaction survey 1.1 & 2.2 86,501

Sapere Research Group Ltd Market research on geographic 1.1 71,500

indications in the Australian market

IP Australia Market research on geographic 1.1 100,000

indications in the Australian market

Media advertising organisations Universal McCann Smartraveller ‘check your travel 2.1 3,288,999

smarts’ campaign (Phase V) and COVID-19 Phase 1 - advertising services (media placement)

Universal McCann Recruitment advertising 1.1, 2.1 21,866

& 2.2

Coffey International Development Pty Ltd Short films on Australia Awards 1.2 60,000 Alumni in Papua New Guinea COVID-19 response efforts Media Niugini Limited (EMTEK) Short film showcasing the partnership 1.2 36,224

between Australia and Papua New Guinea

Australian Public Service Commission Recruitment advertising 1.1 23,488

228 |

APPENDIX

10: CONTRIBUTIONS

APPENDIX 10: CONTRIBUTIONS Table 33 lists payments made by the department totalling $384.4 million, consisting of $172 million to 26 international organisations and international treaty secretariats, and $212.4 million to 13 international peacekeeping missions.

Table 33 Contributions to international organisations and peacekeeping operations

International organisations 2019-20

$

ABAC Secretariat 52,664

Antarctic Treaty Secretariat 94,346

APEC Secretariat 615,577

Arms Trade Treaty 38,038

Asia Europe Foundation 55,752

Biological Weapons Convention 49,323

Commission for the Conservation of Antarctic Marine Living Resources 1,009,781

Commonwealth Secretariat 3,946,581

Comprehensive Nuclear-Test-Ban Treaty 4,301,873

Convention on Certain Conventional Weapons 68,586

Energy Charter Conference 355,221

International Atomic Energy Agency 16,106,947

International Bureau of Permanent Court of Arbitration 77,098

International Centre for the Study of the Preservation and Restoration of Cultural Property 152,306

International Criminal Court 9,450,959

International Tribunal for the Law of the Sea 613,471

International Tribunals for War Crimes 3,271,994

MH17 Dutch National Prosecution Contribution 9,089,900

Organisation for Economic Co-operation and Development 15,557,579

Organisation for the Prohibition of Chemical Weapons 2,616,257

Ottawa Convention 36,008

United Nations - assessed contribution 89,537,029

United Nations Educational, Scientific and Cultural Organization 10,928,498

Voluntary Principles on Security and Human Rights 39,522

Wassenaar Arrangement 83,021

World Trade Organization 3,863,847

International organisations total 172,012,178

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APPENDIX 11: LIST OF SPONSORS

International peacekeeping operations

2019-20 $

UN Disengagement Observer Force 2,398,467

UN Hybrid Operation in Darfur 16,525,423

UN Interim Force in Lebanon 15,857,730

UN Interim Mission in Kosovo 1,088,212

UN Interim Security Force for Abyei 8,735,099

UN Mission for the Referendum in Western Sahara 1,840,087

UN Mission in South Sudan 41,105,357

UN Multidimensional Integrated Stabilization Mission in Mali 39,299,921

UN Multidimensional Integrated Stabilization Mission in the Central African Republic 29,440,655

UN Organization Stabilisation Mission in the Democratic Republic of the Congo 35,437,409

UN Peacekeeping Force in Cyprus 896,610

UN Stabilization Mission in Haiti 1,243,265

UN Support Office for African Union Military Observer Mission in Somalia 18,567,104

International peacekeeping operations total 212,435,340

Grand total 384,447,518

APPENDIX 11: LIST OF SPONSORS The following is a list of sponsors who supported projects or programs undertaken by the department during the year. The list includes sponsorship equivalent to $10,000 and above (GST inclusive).

Table 34 List of sponsors

Sponsor Project/Event Program Amount ($)

Devenish Nutrition Ltd Taste of West Cork Food Festival (Dublin) 1.1 24,546

Foreign Correspondents’ Club 2019 Christmas Card Competition (Hong Kong) 1.1 45,120

Treasury Wine Estates 2020 Australia Day Reception(Hong Kong) 1.1 11,280

CPA Australia - Hong Kong Branch 2020 Australia Day Reception(Hong Kong) 1.1 11,280

Chow Tai Fook Enterprises Limited 2020 Australia Day Reception (Hong Kong) 1.1 11,280

King & Wood Mallesons 2020 Australia Day Reception (Hong Kong) 1.1 11,280

Goodman Asia Limited 2020 Australia Day Reception(Hong Kong) 1.1 11,280

CK Infrastructure Holdings Limited 2020 Australia Day Reception(Hong Kong) 1.1 11,280 Far East Consortium International Limited 2020 Australia Day Reception

(Hong Kong) 1.1 11,280

CLP Holdings 2020 Australia Day Reception(Hong Kong) 1.1 11,280

Sino Land Company Limited 2020 Australia Day Reception(Hong Kong) 1.1 11,280

Blackmores 2020 Australia Day Reception(Hong Kong) 1.1 11,280

Aristocrat Technologies Macau Limited 2020 Australia Day Reception (Hong Kong) 1.1 11,280

BHP Australia-Mexico Business Gala (Mexico City) 1.1 11,872

IFM & Aleatica Australia-Mexico Business Gala (Mexico City) 1.1 11,860

Macquarie Australia-Mexico Business Gala (Mexico City) 1.1 11,857

American Australian Association Anzac Day Commemoration Book (New York) 1.1 15,742

Lendlease Americas Australia Day Luncheon(New York) 1.1 13,842

Dow Chemical Co Limited Australia Day Luncheon(New York) 1.1 13,842

Tennis Australia Limited Australia and the US Open Luncheon (New York) 1.1 12,728

IDP Education Cambodia Limited Australia Day Function 2020(Phnom Penh) 1.1 10,200

Macquarie Bank Australian Focus Film Festival (Rome) 1.1 16,364

| 231 230 |

APPENDIXES

DFAT ANNUAL REPORT 2019-20

APPENDIX 12: SUMMARY OF THE OVERSEAS NETWORK

APPENDIX 12: SUMMARY OF THE Sponsor Project/Event Program Amount ($) Australia Day 2020 10,286 OVERSEAS NETWORK Orica Chile S.A. 1.1 (Santiago De Chile) Australia Day 2020 At 30 June the overseas network comprised 120 posts in 84 countries including nine Austrade- BHP Chile Inc. 1.1 10,794 (Santiago De Chile) managed posts providing consular services. As part of the Canada-Australia Consular Sharing Australia Day 2020 & 2021 Agreement, 13 Canadian missions provided consular assistance to Australians in 16 locations. At Lendlease Asia Holdings Pte Ltd 1.1 15,664 (Singapore) 30 June we also managed 48 consulates headed by an honorary consul.Australia Day 2020 & 2021 Curtin Singapore 1.1 15,664 (Singapore) More information about our overseas network is available at the department’s website at http://dfat.gov.au/about-us/our-locations/missions/Pages/our-embassies-and-consulates-overseas.aspx and at Australia Day 2020 & 2021 Australian International School 1.1 15,664 (Singapore) www.smartraveller.gov.au BHP Billiton Marketing Asia Pte Ltd Australia Day 2020 & 2021 1.1 15,664 Table 35 Australian Government embassies, high commissions, consulates, multilateral missions (Singapore) and representative offices managed by DFAT and Austrade Australia Day 2020 & 2021 NS BlueScope Pte Ltd 1.1 15,664 (Singapore) Location City Type Australia Day 2020 & 2021 Afghanistan Kabul Embassy James Cook University 1.1 15,664 (Singapore) Argentina Buenos Aires Embassy Austria Vienna Embassy and Permanent Mission to the Australia Day 2020 & 2021 Deloitte & Touche LLP 1.1 15,664 (Singapore) United Nations Australia Day 2020 & 2021 Bangladesh Dhaka High Commission Griffith University 1.1 11,363 (Singapore) Belgium Brussels Embassy and Mission to the European Union Australia Day 2020 & 2021 Brazil Brasilia Embassy Murdoch Singapore Pte Ltd 1.1 10,443 (Singapore) São Paulo Consulate-General* Australia Day 2020 & 2021 Brunei Darussalam Bandar Seri Begawan High Commission Westpac Banking Corporation 1.1 10,443 (Singapore) Cambodia Phnom Penh Embassy Australia Day in Spring 2020 & 2021 Canada Ottawa High Commission Toll Express Japan Co Ltd 1.1 16,900 (Tokyo) Toronto Consulate-General* Australia Day in Spring 2020 & 2021 Chile Santiago Embassy National Australia Bank Limited 1.1 16,900 (Tokyo) China Beijing Embassy Australia Day in Spring 2020 & 2021 Chengdu Consulate-General Macquarie Group Japan 1.1 16,900 (Tokyo) Guangzhou Consulate-General Thank You Reception and Bushfire Hong Kong Consulate-General Pratt Holdings Pty Ltd 1.1 53,912 Benefit (Washington) Shanghai Consulate-General Shenyang Consulate-General Cook Islands Rarotonga High Commission Colombia Bogotá Embassy Croatia Zagreb Embassy Cyprus Nicosia High Commission Denmark Copenhagen Embassy Egypt Cairo Embassy Ethiopia Addis Ababa Embassy Federated States of Pohnpei Embassy Micronesia Fiji France Suva Paris High Commission Embassy and Permanent Delegation to UNESCOGermany Paris Berlin Frankfurt Delegation to the OECD Embassy Consulate-General* Ghana Accra High Commission Greece Athens Embassy 232 | | 233

APPENDIXES

DFAT ANNUAL REPORT 2019-20

APPENDIX 12: SUMMARY OF THE OVERSEAS NETWORK

Location City Type

India New Delhi

Chennai

High Commission Consulate-General

Kolkata Consulate-General

Mumbai Consulate-General

Indonesia Jakarta

Jakarta ASEAN

Embassy Mission

Bali (Denpasar) Makassar

Consulate-General Consulate-General

Iran Iraq Ireland Israel Italy

Surabaya Tehran Baghdad Dublin Tel Aviv Rome Milan

Consulate-General Embassy Embassy Embassy Embassy Embassy and Permanent Mission to the FAO Consulate-General*

Japan Tokyo

Osaka

Embassy Consulate-General*

Jordan Kenya Kiribati Korea, Republic of Kuwait Laos Lebanon Malaysia Malta Mauritius Mexico Mongolia Morocco Myanmar Nauru Nepal Netherlands New Caledonia (France) New Zealand

Amman Nairobi Tarawa Seoul Kuwait City Vientiane Beirut Kuala Lumpur Malta Port Louis Mexico City Ulaanbaatar Rabat Yangon Nauru Kathmandu The Hague Noumea Wellington Auckland

Embassy High Commission High Commission Embassy Embassy Embassy Embassy High Commission High Commission High Commission Embassy Embassy Embassy Embassy High Commission Embassy Embassy Consulate-General High Commission Consulate-General*

Nigeria Pakistan Palau Papua New Guinea

Abuja Islamabad Koror Port Moresby Lae

High Commission High Commission Embassy High Commission Consulate-General

Peru Lima Embassy

Philippines Manila Embassy

Poland Warsaw Embassy

Portugal Lisbon Embassy

Qatar Doha Embassy

Russia Moscow Embassy

Samoa Apia High Commission

Location City Type

Saudi Arabia Riyadh Embassy

Serbia Belgrade Embassy

Singapore Singapore High Commission

Solomon Islands Honiara High Commission

South Africa Pretoria High Commission

Spain Madrid Embassy

Sri Lanka Colombo High Commission

Sweden Stockholm Embassy

Switzerland Geneva Permanent Mission to the United Nations

Geneva Permanent Mission to the WTO and

Consulate-General

Thailand Bangkok

Phuket

Embassy and Permanent Mission to ESCAP Consulate-General

Timor-Leste Tonga Trinidad and Tobago Turkey

Dili Nuku’alofa Port of Spain Ankara Çanakkale

Embassy High Commission High Commission Embassy Consulate

Istanbul Consulate-General

Tuvalu Ukraine United Arab Emirates

Funafuti Kyiv Abu Dhabi Dubai

High Commission Embassy Embassy Consulate-General*

United Kingdom London High Commission

Washington DC Embassy

Chicago Consulate-General

Honolulu Consulate-General

Houston Consulate-General*

Los Angeles Consulate-General

New York Consulate-General

New York Permanent Mission to the United Nations

San Francisco Consulate-General*

Vanuatu Port Vila High Commission

Vatican City Vatican City Embassy to the Holy See

Vietnam Hanoi Embassy

Ho Chi Minh City Consulate-General

Zimbabwe Harare Embassy

*Posts managed by Austrade and providing consular services In Ramallah, the Australian Government maintains the Australian Representative Office In Taipei, the Australian Office represents Australian interests in Taiwan in the absence of formal relations

United States of America

234 | | 235

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DFAT ANNUAL REPORT 2019-20

Table 36 Consulates headed by honorary consuls

Region Country City Responsible Post

Africa Angola

Botswana

Luanda Gaborone

Pretoria Pretoria

Cameroon Madagascar Malawi Namibia

Yaounde Antananarivo Lilongwe Windhoek

Abuja Port Louis Harare Pretoria

Nigeria Uganda Zambia

Lagos Kampala Lusaka

Abuja Nairobi Harare

Asia Kazakhstan

Malaysia Malaysia Malaysia Pakistan

Almaty Kota Kinabalu Kuching Penang Lahore

Moscow Kuala Lumpur Kuala Lumpur Kuala Lumpur Islamabad

Caribbean

Central/South America

Thailand Bahamas Barbados Jamaica Bolivia Brazil

Chiang Mai Nassau St James / Bridgetown Kingston La Paz Rio de Janeiro

Bangkok Port of Spain Port of Spain Port of Spain Lima Brasilia

Europe

Costa Rica Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Paraguay Uruguay Bulgaria Czech Republic Estonia

San Jose Guayaquil San Salvador Guatemala City Tegucigalpa Cancun Managua Panama City Asuncion Montevideo Sofia Prague * Tallinn

Mexico City Santiago Mexico City Mexico City Mexico City Mexico City Mexico City Mexico City Buenos Aires Buenos Aires Athens Warsaw Stockholm

Finland Helsinki Stockholm

Greece Thessaloniki Athens

Latvia Lithuania

Riga Vilnius

Stockholm Warsaw

North Macedonia Romania

Skopje Bucharest

Belgrade Athens

Middle East

North America

Russia Slovenia Spain Oman Saudi Arabia Canada

St Petersburg Ljubljana Barcelona Muscat Jeddah Vancouver*

Moscow Vienna Madrid Riyadh Riyadh Ottawa

Pacific

USA USA French Polynesia (France)

Denver Miami

Papeete

Los Angeles Washington

Noumea

* Austrade-managed consulate.

236 |

APPENDIX

13 LIST OF CORRECTIONS

APPENDIX 13 LIST OF CORRECTIONS The following errors appeared in DFAT Annual Report 2018-19.

Location: Preceding title and page number Printed text Correct text

Pursue our This is good for our economy—one in This is good for our economy—one economic, trade and every seven Australian jobs is with one in every seven Australian jobs is investment agenda of the more than 53,000 businesses export-related and more than 53,000 for opportunity, that export goods and services. businesses export goods and services. p. 40

Figure 7, Benefits of trade and investment for Australians, p. 40

Australian NGO Cooperation Program, p. 74

Advance global cooperation— strengthening international law, p. 82

Helping Australians in trouble, Table 1 Consular services provided to Australians, 2018-19 column, p. 98

Table 20, Key management personnel remuneration for the reporting period, p. 219

1 in 5 jobs rely on trade 1 in 7 jobs rely on exports Trade liberalisation delivered about $8,448 in extra real income to the average family

Eighty per cent of ANCP’s work is in the Indo-Pacific, with the remainder predominantly in Africa. Projects included: • teaching children about

respectful relationships

Australia and Malaysia co-chaired an East Asia Summit seminar on maritime security and international law and security, and we co-chaired with Vietnam an ASEAN Regional Forum workshop on implementing UNCLOS.

Total number of cases involving Australians in difficulty who received consular assistance 13,715 Notarial acts 201,522 Total assistance - total number of cases of Australians provided with consular services 215,237

Base salary 3,307,575 Other benefits and allowances 209,538 Total short-term benefits 3,517,113 Total key management personnel remuneration 4,118,533

1 in 5 jobs are trade-related 1 in 7 jobs are export-related Trade liberalisation delivered about $8,448 in extra real income to the average family over the 30 year period 1986-2016

Eighty-seven per cent of ANCP expenditure is in the Indo-Pacific, with the remainder predominantly in Africa. Projects included: • teaching children about

acceptable behaviour from others

Australia and Malaysia co-chaired an East Asia Summit seminar on maritime security and international law, and we co-chaired with Vietnam an ASEAN Regional Forum workshop on implementing UNCLOS.

Total number of cases involving Australians in difficulty who received consular assistance 13,707 Notarial acts 201,696 Total assistance - total number of cases of Australians provided with consular services 215,403

Base salary 3,090,632 Other benefits and allowances 229,576 Total short-term benefits 3,320,208 Total key management personnel remuneration 3,921,628

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Location: Preceding title and page number Printed text Correct text

Table 21, Key management personnel remuneration 2018-19, p. 220

Frances Adamson Base salary 786,730 Other benefits and allowances 21,249 Total remuneration 936,442

Nikki Penelope Williams Base salary 345,789 Other benefits and allowances 23,897 Total remuneration 435,182

Caroline Millar Base salary 78,475 Other benefits and allowances 7,261 Total remuneration 100,227

Tony Sheehan Base salary 308,431 Total remuneration 368,712

Richard Maude Base salary 427,887 Other benefits and allowances 23,897 Total remuneration 530,340

Christopher Langman Base salary 338,209 Other benefits and allowances 23,897 Total remuneration 418,460

Clare Walsh Base salary 337,543 Other benefits and allowances 44,922 Total remuneration 447,625

Paul Wood Base salary 228,928 Other benefits and allowances 19,310 Total remuneration 287,244

Daniel Sloper Base salary 259,460 Other benefits and allowances 21,615 Total remuneration 334,676

Suzanne McCourt Base salary 86,813 Other benefits and allowances 11,544 Total remuneration 117,873

Angela Robinson Base salary 85,036 Other benefits and allowances 11,946 Total remuneration 113,267

Total base salary 3,307,575

Total other benefits and allowances 209,538

Total remuneration 4,118,533

Frances Adamson Base salary 747,386 Other benefits and allowances 21,678 Total remuneration 897,527

Nikki Penelope Williams Base salary 320,864 Other benefits and allowances 26,471 Total remuneration 412,831

Caroline Millar Base salary 64,446 Other benefits and allowances 7,876 Total remuneration 86,813

Tony Sheehan Base salary 293,653 Total remuneration 353,934

Richard Maude Base salary 400,493 Other benefits and allowances 26,471 Total remuneration 505,520

Christopher Langman Base salary 320,673 Other benefits and allowances 26,471 Total remuneration 403,498

Clare Walsh Base salary 309,251 Other benefits and allowances 47,496 Total remuneration 421,907

Paul Wood Base salary 205,973 Other benefits and allowances 21,594 Total remuneration 266,573

Daniel Sloper Base salary 237,471 Other benefits and allowances 24,189 Total remuneration 315,261

Suzanne McCourt Base salary 83,272 Other benefits and allowances 14,118 Total remuneration 116,906

Angela Robinson Base salary 82,876 Other benefits and allowances 13,212 Total remuneration 112,373

Total base salary 3,090,632

Total other benefits and allowances 229,576

Total remuneration 3,921,628

Appendix 12 The overseas network comprises 120 The overseas network comprises 120 Summary of the posts in 83 countries including 11 posts in 82 countries including 11 overseas network, posts managed by Austrade. posts managed by Austrade. p. 242

238 |

APPENDIX

14: LIST OF REQUIREMENTS

APPENDIX 14: LIST OF REQUIREMENTS PGPA Rule Reference Part of

Report Description Requirement

17AD(g) 17AI

17AD(h) 17AJ(a) 17AJ(b) 17AJ(c) 17AJ(d) 17AJ(e) 17AJ(f) 17AJ(g) 17AD(a) 17AD(a) 17AD(b) 17AE(1)(a)(i) 17AE(1)(a)(ii)

17AE(1)(a)(iii)

17AE(1)(a)(iv)

17AE(1)(aa)(i)

17AE(1)(aa)(ii)

17AE(1)(aa)(iii)

17AE(1)(b)

17AE(2)

17AD(c)

Letter of transmittal p. 7 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. Aids to access p. 8-9 Table of contents.

p. 249-262 Alphabetical index.

p. 246-248 Glossary of abbreviations and acronyms.

p. 239-243 List of requirements.

p. 6 Details of contact officer.

p. 6 Entity’s website address.

p. 6 Electronic address of report.

Review by accountable authority p. 12-15 A review by the accountable authority of the entity. Overview of the entity p. 16 A description of the role and functions of the entity. p. 19 A description of the organisational structure of the

entity.

p. 17 A description of the outcomes and programmes administered by the entity. p. 17 A description of the purposes of the entity as included in corporate plan. p. 18 Name of the accountable authority or each member

of the accountable authority.

p.18 Position title of the accountable authority or each member of the accountable authority. p. 211 Period as the accountable authority or member of the accountable authority within the reporting period. p.18 An outline of the structure of the portfolio of the

entity.

N/A 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. Report on the Performance of the entity Annual performance Statements

Mandatory

Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory

Mandatory

Mandatory Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

Portfolio departments mandatory If applicable, Mandatory

17AD(c)(i); 16F p. 22-105 Annual performance statement in accordance with paragraph 39(1)(b) of the Act and section 16F of the Rule.

Mandatory

17AD(c)(ii) 17AF(1)(a)

17AF(1)(b)

Report on Financial Performance p. 106-107 A discussion and analysis of the entity’s financial performance. p. 214-217 A table summarising the total resources and total

payments of the entity.

Mandatory

Mandatory

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APPENDIXES

DFAT ANNUAL REPORT 2019-20

If applicable, Mandatory.

PGPA Rule Reference

Part of Report Description Requirement

17AF(2) N/A If there may be significant changes in the financial

results during or after the previous or current reporting period, 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) p. 7 Information on compliance with section 10 (fraud Mandatory

systems).

17AG(2)(b)(i) p. 7 A certification by accountable authority that fraud Mandatory

risk assessments and fraud control plans have been prepared.

17AG(2)(b)(ii) p. 7 A certification by accountable authority that Mandatory

appropriate 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) p. 7 A certification by accountable authority that all Mandatory

reasonable measures have been taken to deal appropriately with fraud relating to the entity.

17AG(2)(c) p. 118-119 An outline of structures and processes in place for Mandatory the entity to implement principles and objectives of corporate governance. 17AG(2)(d) - (e) N/A A statement of significant issues reported to Minister If applicable,

under paragraph 19(1)(e) of the Act that relates to Mandatory non-compliance with Finance law and action taken to remedy non-compliance. Audit Committee 17AG(2A)(a) p. 118 A direct electronic address of the charter determining Mandatory

the functions of the entity’s audit committee.

17AG(2A)(b) p. 219-220 The name of each member of the entity’s audit Mandatory committee. 17AG(2A)(c) p. 219-220 The qualifications, knowledge, skills or experience of Mandatory each member of the entity’s audit committee. 17AG(2A)(d) p. 219-220 Information about the attendance of each member of Mandatory

the entity’s audit committee at committee meetings.

17AG(2A)(e) p. 219-220 The remuneration of each member of the entity’s Mandatory audit committee. External Scrutiny 17AG(3) p. 120-121 Information on the most significant developments Mandatory

in external scrutiny and the entity’s response to the scrutiny.

17AG(3)(a) p. 120-121 Information on judicial decisions and decisions If applicable, of administrative tribunals and by the Australian Mandatory Information Commissioner that may have a significant effect on the operations of the entity.

17AG(3)(b) p. 121; Information on any reports on operations of the If applicable,

p. 226-227 entity by the Auditor General (other than report Mandatory under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman. 17AG(3)(c) N/A Information on any capability reviews on the entity If applicable,

that were released during the period. Mandatory

Management of Human Resources

17AG(4)(a) p. 112-117 An assessment of the entity’s effectiveness in Mandatory

managing and developing employees to achieve entity objectives.

240 |

APPENDIX

14: LIST OF REQUIREMENTS

PGPA Rule Reference

Part of Report Description Requirement

17AG(4)(aa) p. 202-203 Statistics on the entity’s employees on an ongoing Mandatory and non-ongoing basis, including the following: (a) statistics on full-time employees; (b) statistics on part-time employees; (c) statistics on gender; (d) statistics on staff location. 17AG(4)(b) p. 204-208 Statistics on the entity’s APS employees on an Mandatory

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.

17AG(4)(c) p. 112; Information on any enterprise agreements, Mandatory

p. 208 individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999.

17AG(4)(c)(i)

17AG(4)(c)(ii)

p. 112; p. 208

p. 209

Information on the number of SES and non-SES employees covered by agreements etc identified in paragraph 17AG(4)(c). The salary ranges available for APS employees by classification level.

Mandatory

Mandatory

17AG(4)(c)(iii)

17AG(4)(d)(i)

17AG(4)(d)(ii)

17AG(4)(d)(iii)

p. 112

p. 209

p. 209

p. 209

A description of non-salary benefits provided to employees. Information on the number of employees at each classification level who received performance pay. Information on aggregate amounts of performance pay at each classification level.

Information on the average amount of performance payment, and range of such payments, at each classification level.

Mandatory

If applicable, Mandatory If applicable, Mandatory If applicable, Mandatory

17AG(4)(d)(iv) p. 209 Information on aggregate amount of performance payments. Assets Management

If applicable, Mandatory

17AG(5) p. 121

Purchasing

An assessment of effectiveness of assets management where asset management is a significant part of the entity’s activities.

If applicable, mandatory

17AG(6) p. 121-122 An assessment of entity performance against the Commonwealth Procurement Rules. Mandatory Consultants 17AG(7)(a) p. 122 A summary statement detailing the number of

new contracts 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).

Mandatory

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DFAT ANNUAL REPORT 2019-20

APPENDIX 14: LIST OF REQUIREMENTS

PGPA Rule Reference

Part of Report Description Requirement

17AG(7)(b) p. 122 A statement that “During [reporting period], Mandatory

[specified 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) p. 122 A summary of the policies and procedures for Mandatory

selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged.

17AG(7)(d) p. 122 A statement that “Annual reports contain information Mandatory about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.” Australian National Audit Office Access Clauses 17AG(8) p. 122 If an entity entered into a contract with a value If applicable,

of more than $100,000 (inclusive of GST) and the Mandatory contract did not provide 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) p. 122 If an entity entered into a contract or there is a

standing offer with a value greater than $10 000 (inclusive of GST) which has 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.

If applicable, Mandatory

Small business

17AG(10)(a) p. 122-123 A statement that “[Name of entity] supports small Mandatory business 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) p. 122-123 An outline of the ways in which the procurement Mandatory

practices of the entity support small and medium enterprises.

17AG(10)(c) p. 123 If the entity is considered by the Department If applicable,

administered by the Finance Minister as material Mandatory 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) p. 127-199 Inclusion of the annual financial statements in Mandatory

accordance with subsection 43(4) of the Act. Executive Remuneration 17AD(da) p. 210-213 Information about executive remuneration in Mandatory accordance with Subdivision C of Division 3A of

Part 2-3 of the Rule.

242 |

17AH(1)(a)(i) p. 228

PGPA Rule Reference

Part of Report Description Requirement

17AD(f) Other Mandatory Information If the entity conducted advertising campaigns, a statement that “During [reporting period], the [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)(e) p. 237-238 Correction of material errors in previous annual If applicable, report. mandatory

17AH(2) p. 113; Information required by other legislation. Mandatory

p. 221-225; p. 228

If applicable, Mandatory

17AH(1)(a)(ii) N/A If the entity did not conduct advertising campaigns, a If applicable, statement to that effect. Mandatory

17AH(1)(b) p. 123 A statement that “Information on grants awarded by If applicable, [name of entity] during [reporting period] is available Mandatory at [address of entity’s website].” 17AH(1)(c) p. 117 Outline of mechanisms of disability reporting, Mandatory

including reference to website for further information.

17AH(1)(d) p. 120 Website reference to where the entity’s Information Mandatory Publication Scheme statement pursuant to Part II of FOI Act can be found.

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••••••••••••••••••••••••••••••••••••• ••••••••••••••••••• ••••••••••••••••••••••••••• 4

REFERENCE MATERIAL

REFERENCE MATERIAL

DFAT ANNUAL REPORT 2019-20

GLOSSARY OF ACRONYMS, ABBREVIATIONS AND TERMS

Term Definition

A-HKFTA Australia-Hong Kong Free Trade Agreement

AAT Administrative Appeals Tribunal

AANZFTA ASEAN-Australia-New Zealand Free Trade Agreement

AFinti Australia-France Initiative

AHP Australian Humanitarian Partnership

AIFFP Australian Infrastructure Financing Facility for the Pacific

ANAO Australian National Audit Office

ANU Australian National University

APEC Asia-Pacific Economic Cooperation

APIS Australian Passport Information Service

APS Australian Public Service

APSC Australian Public Service Commission

ARF ASEAN Regional Forum

ASEAN Association of Southeast Asian Nations

ASNO Australian Safeguards and Non-proliferation Office

ASPI Australian Strategic Policy Institute

AUSMIN Australia-United States Ministerial Consultations

CD Conference on Disarmament

CEC Consular Emergency Centre

CEPI Coalition for Epidemic Preparedness Innovations

CFI counter foreign interference

CHS Indo-Pacific Centre for Health Security

25th Conference of the Parties, 2019 United Nations Climate Change Conference, COP25 Madrid, Spain 26th Conference of the Parties, 2021 United Nations Climate Change Conference, COP26 Glasgow, United Kingdom CPTPP Comprehensive and Progressive Agreement for Trans-Pacific Partnership

CS2 Coral Sea Cable System

CSP Comprehensive Strategic Partnership

CTBT Comprehensive Nuclear-Test-Ban Treaty

CVE Countering Violent Extremism

246 |

GL

OSSARY OF ACRONYMS, ABBREVIATIONS AND TERMS

Term Definition

CWC Chemical Weapons Convention

DAC Diplomatic Academy

DFC US International Development Finance Corporation

DSF DFAT Security Framework

EAS East Asia Summit

ECU Emergency call units

FAST Blueprint for Mobilizing Finance Against Slavery and Trafficking

FATF Financial Action Task Force

FIND Foundation for Innovative New Diagnostics

FOI Freedom of Information

FTA Free Trade Agreement

GABF Government and Business Forum

GCTF Global Counterterrorism Forum

Group of Twenty (19 member countries and the European Union)—forum for G20 international economic cooperation HRC United Nations Human Rights Council

IA-CEPA Indonesia-Australia Comprehensive Economic Partnership Agreement

IAEA International Atomic Energy Agency

ICT Information and communications technology

IFAM International Freight Assistance Mechanism

IEC Independent Evaluation Committee

IORA Indian Ocean Rim Association

JAEPA Japan-Australia Economic Partnership Agreement

JLL Jones Lang LaSalle

KAFTA Korea-Australia Free Trade Agreement

LAWS Lethal Autonomous Weapons Systems

LES Locally engaged staff

LTI Long Term Injury

MAC Ministerial Advisory Council on FTA Negotiations

MIKTA Mexico, Indonesia, the Republic of Korea, Turkey and Australia

NPDI Non-Proliferation and Disarmament Initiative

NPT Non-Proliferation Treaty

ODE Office of Development Effectiveness

OEWG Open-Ended Working Group

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REFERENCE MATERIAL

DFAT ANNUAL REPORT 2019-20

Term Definition

OPCW Organisation for the Prohibition of Chemical Weapons

OPO Overseas Property Office and Services

PACER Plus Pacific Agreement on Closer Economic Relations Plus

PAFTA Peru-Australia Free Trade Agreement

PBS Portfolio Budget Statements

PCPP Pacific Church Partnership Program

PNG Papua New Guinea

RCEP Regional Comprehensive Economic Partnership

SIDN Solomon Islands Domestic Network

SES Senior Executive Service

TIP Trilateral Infrastructure Partnership

UNESCO United Nations Educational, Scientific and Cultural Organization

UNFCCC United Nations Framework Convention on Climate Change

UNSC United Nations Security Council

VPI Voluntary Principles Initiative on Security and Human Rights

WHO World Health Organization

WMD weapons of mass destruction

WPS Women, Peace and Security

WTO World Trade Organization

INDEX A A4 copy paper, 40

AANZFTA, 41, 43

Aboriginal Australians, see Indigenous Australians

Abuja, 83, 101, 103

accommodation planning, 225

accountability and management, 110-23

accounting standards, 106

act of grace payments, 121

Addendum to the GCTF Good Practices on Women and Countering Violent Extremism, 52

administered program, 107

administrative tribunals, matters before, 120

Advance global cooperation, 77-87, 237

advertising and market research, 228

Afghanistan, 32, 66, 75, 88

Africa, 66, 75

DFAT-Defence Crisis Preparedness Assurance Team visits, 95

human rights, 78

mining, 52, 83

posts in, 83, 101, 103

terrorist activity, 52

African Swine Fever, 30

agency resource statement, 214-17

agriculture and agricultural markets, 30, 40, 47, 50, 76, 83

China, 25

Fiji, 69

India, 50

Indonesia, 42-3

Peru, 43

aid for trade, 68

Aid Governance Board, 118

aid program, see development assistance program

Aid Program Performance Reports, 71

aid quality checks, 71

Alliance 8.7 initiative, 58

Alofi, 103

aluminium, 24

alumni and alumni engagement, 37, 85

Ambassador for Arms Control and Counter-Proliferation, 55

Ambassador for Counter-Terrorism, 52

Ambassador for Cyber Affairs and Critical Technology, 53, 54

Ambassador for People Smuggling and Human Trafficking, 57, 58

annual performance statement, 23-107

ratings, 16

Annual Report

corrections to errors in previous, 237-8

list of requirements, 239-43

Antarctic Treaty system, 79

Anti-Personnel Mine Ban Convention Oslo Action Plan, 57

anti-dumping measures, 40

China, 25

APEC, 41, 49, 78, 83

Apia, 103

apples, 50

appropriation revenue, see finance

APS Employee Census, 113, 117

arms control and counter-proliferation, 55-7

Japan, 27

North Korea, 36, 55

Arms Trade Treaty Voluntary Trust Fund, 57

artificial intelligence, 43, 57

ASEAN, 32, 33, 61

Australia now program, 84

hostile disinformation workshop, 53

Rolling Pipeline of Potential ASEAN Infrastructure Projects, 36

ASEAN-Australia Foreign Ministers’ Meeting, 24, 33

ASEAN-Australia-New Zealand Free Trade Agreement, 41, 43

ASEAN Regional Forum, 34, 80, 237

Asian Development Bank, 67

assets and assets management, 104-5, 106-7, 121

Association of Southeast Asian Nations, see ASEAN

Audit and Risk Committee, 118, 219-20

audits, 71, 118-19, 121

multilateral engagement, 77

workplace health and safety, 221, 222

Aus4Equality program, 60

Aus4Reform program, 64

Auschwitz-Birkenau Concentration Camp, 83

AUSMIN, 24

Austrade, 122, 226, 227

information seminars and webinars, 44

overseas posts managed, 112

Australia, Menzies and Suez, 86

Australia Assists program, 72

Australia Awards, 60, 66, 85

Australia-China High Level Dialogue, 26

Australia Group, 56

Australia-Hong Kong Free Trade Agreement, 43, 226

Australia-India Cyber and Critical Technology Partnership, 54

Australia-India Virtual Summit, 28, 35

Australia-India-Japan-United States Quadrilateral Foreign Ministers’ Meeting, 33

Australia-Japan Foundation, 27

Australia-Malaysia Strategic Partnership, 31

Australia now program, 84-5

Australia Pacific Security College, 34

Australia-Papua New Guinea Cyber Security Cooperation Program, 54

Australia-Republic of Korea Foreign and Defence Ministers’ 2+2 meeting, 28

Australia-Singapore Digital Economy Agreement, 43

Australia-Thailand Strategic Partnership, 32

Australia-United States Free Trade Agreement, 24

Australia-United States Ministerial Consultations, 24

INDEX

| 249 248 |

REFERENCE MATERIAL

Australia-Vietnam Enhanced Economic Engagement Strategy, 31

Australia-World Bank Strategic Partnership, 64

Australian Aid: Friendship Grants, 70

Australian Antarctic Division, 79

Australian Border Force, 95

Australian Centre for Disease Preparedness, 30

Australian Council for International Development, 69

Australian Cyber Security Centre, 54, 102

Australian Defence Force (Department of Defence), 36, 72, 82, 95, 227

Australian Federal Police, 95

Australian Human Rights Commission, 121

Australian Humanitarian Partnership, 74

Australian Information Commissioner, 120

Australian Infrastructure Financing Facility for the Pacific (AIFFP), 29, 35, 62

Australian Institute for International Affairs, 86

Australian Medical Assistance Teams, 73, 95

Australian National Audit Office (ANAO, Auditor-General), 118, 122

audits, 71, 119, 121

Australian NGO Cooperation Program, 69, 237

Australian Nuclear Science and Technology Organisation, 55

Australian Passport Office, see passports

Australian Public Service Employee Census, 113, 117

Australian Safeguards and Non-proliferation Office, 56, 210

Australian Trade and Investment Commission, see Austrade

Australian Volunteers Program, 70

Australian Water Partnership program, 34

Australian Workplace Equality Index, 117

Australians overseas, 88-99

Australians overseas, return of, 24, 25, 88, 91

Diamond Princess cruise ship passengers, 26

New Colombo Plan (NCP) scholars, 37

from Peru, 97

volunteers, 70

from Wuhan, 26, 88, 90, 95, 97

Austria, 82

awards (recognition), 113, 122

awards (scholarships), see scholarships and awards

Ayerwaddy River, 34

Azad Kashmir, 32

B

Bali Democracy Forum, 27

Bali Process, 58

ballistic missiles, 36, 55

Balochistan, 32

Bangladesh, 32, 66, 74, 86

Bangsamoro Autonomous Region in Muslim Mindanao, 64

banking process, DFAT, 110, 111

barley, 25, 50

beef, 25

Beijing Action Plan on Women, 78

belief, freedom of, 78

Bhutan, 66

biological diversity, 223

biological weapons, 57

blue economy, 32, 83

Boe Declaration on Regional Security, 34

Bougainville, 33

Bowker, Dr Bob, 86

Brazil, 83

Brexit, 82

Britain, see United Kingdom

Brunei, 32

budget, see finance

Building Owners and Managers Association International guidelines, 225

bullying, 119

Burma, see Myanmar

bushfire response, 46, 84

Fiji, 29, 94

Japan, 26

New Zealand, 28

passports, 98

procurement initiatives, 85, 122

protocol services, 86

Tourism Australia funding, 107

United States, 24

workplace health and safety, 104, 221, 224

Bushfire Response Package, 107

business, support for, 41-4, 46, 49-50

China, 26

Hong Kong, 25

India, 28

Indigenous business, 122

business continuity planning, 114-15

Business Partnerships Platform, 68

business sponsors, 37, 231-2

C

Cairns Group, 40, 83

Cambodia, 32, 65, 67

Canada, 40, 233

Rabat embassy, 103

Canberra Fellowships Program, 34

cancelled passports, 96, 97

capacity building, 28, 65, 71

APEC support, 41

Australia Pacific Security College, 34

Canberra Fellowships Program, 34

cyber security, 54

diplomats, 112

international business literacy courses, 49

Iraqi forces, 83

mutual recognition agreements, 49

trade policy and regulation, 76

women, 33, 63

see also education

capital management plan, 121

capital works, 102-4, 223-4

Caribbean, 83

posts in, 101

CBM Australia, 67

Central Australian Aboriginal Women’s Choir, 85

Charter for Disability Inclusion in Humanitarian Action, 75

Charter of the United Nations Act 1945, 53

Chartered Institute of Procurement and Supply Australia award, 122

‘check your travel smarts’ campaign, 93

chemical weapons, 56, 57

Chief Auditor, 118-19

Chief Finance Officer, 210-11

Chief People Officer, 210-11

Chief Risk Officer, 210-11

child labour, 58

child sex offenders, 96

children, 73

passports, 96

vaccination, 76, 81

see also education

Chile, 41, 83

China, 25-6

Hong Kong, 25, 26, 43, 226

mutual recognition arrangements, 49

trade, 25, 45

Wuhan and Hubei province, 26, 88, 90, 95, 97

China International Import Expo, 26

church partners, 31

civil society, 69-70

climate change, 35, 61, 68, 79, 223

Pacific, 35, 62, 74, 79; Kainaki II Declaration, 34

South Asia, 66

coal, 45

Coalition for Epidemic Preparedness Innovations, 61

Colombia, 83

Comcare, 222

Comcover Award, 113

Committee on the Elimination of Discrimination Against Women, 78

Commonwealth, 80

Commonwealth Director of Public Prosecution referrals, 96

Commonwealth Ombudsman, 121

Commonwealth Scientific and Industrial Research Organisation, 32

compensation for detriment caused by defective administration, 121

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), 43

Comprehensive Nuclear-Test-Ban Treaty, 56

computing, see information and communications technology; intranet; websites and web services

conduct, values and ethics, 118, 119

Conference of the States Parties to the Chemical Weapons Convention, 56

construction projects, 102-4, 223-4

Consular Emergency Centre, 88, 97

consular services, 88-96, 112, 120

corrections to Annual Report 2018-19, 237

Hong Kong, 25

redeployment of passport services staff to, 97

Consular State of Play report, 93

consultants, 122

consumer protection, 41

container shipping, 49

contract services, see purchasing

Convention on the Law of the Sea, 34, 80

Cook Islands (Rarotonga), 29, 103

coral reefs, 28, 223

Coral Sea Cable System, 35

coronial inquest, 120

corporate governance, 118-19

Corporate Plan, 16, 116

priority functions, 17

see also performance measures

costs, see finance

Cotton, Professor James, 86

Council for Australian-Arab relations, 83

Countering Foreign Interference (CFI) Diplomatic Strategy pilot program, 53

counter-terrorism, 51-53 see also terrorism

court actions, 120

COVAX Advance Market Commitment, 81

COVID-19, 16

Australians overseas tested positive/quarantined, 91

disinformation, 53

financial performance, effects on, 106

International Atomic Energy Agency inspections, 55

passports, effects on, 96, 99

vaccine, 19, 26, 61, 81

COVID-19 Coordination Unit, 102

COVID-19 Data Analytics Unit, 114

COVID-19 Export Capital Facility, 46

COVID-19 Relief and Recovery Fund, 46

COVID-19 response and recovery, 12-15, 33, 40, 46, 110, 114-15, 227

Australian business, engagement with, 42

China, 26

consular services, 88, 90-2, 95

cyber security, 53-4

development assistance program, 60, 61, 63, 65, 66, 67-8, 69, 73, 74, 75

disability, people with, 67, 69

domestic property management, 104

food security, 29, 40, 69

global cooperation, 78-9, 80, 81, 82, 83, 84, 86, 87

Hong Kong, 25, 26

Japan, 26

ministerial and parliamentary support, 38

New Zealand, 28, 87

overseas presence, 101, 102, 105

Pacific, 29, 30, 31, 34, 63, 67, 68, 69, 73, 80, 87

Palestinian Territories, 66

INDEX

| 251 250 |

REFERENCE MATERIAL

DFAT ANNUAL REPORT 2019-20

passport services, 97

redeployment of staff, 31, 38, 97, 114

repatriation of foreign citizens in Australia, 87

South Asia, 66

Southeast Asia, 31, 32, 33, 60, 65, 67, 68, 74; Indonesia, 27, 28, 67

staff redeployments, 31, 97, 114

United States, 24

World Health Organization evaluation, 81

see also Australians overseas, return of

Cox’s Bazar District, 32, 74

Crimea, 82

crises, 94-6

Hong Kong, 25

see also bushfire response; COVID-19; humanitarian crises

Crisis Action Plans, 95

Crisis Centre, 96

Crisis Preparedness Assurance Team, 95

Crisis Response Team, 25, 90, 94

Critical Infrastructure Centre, 47

critical minerals, 24, 27, 28, 44

cruise ships, 87, 91

Diamond Princess, 26, 88

Whakaari/White Island volcanic eruption, 95

CSIRO, 32

cultural and linguistic diversity, 117

see also languages

Cyber Cooperation Program, 54

cyber issues, see information and communications technology

cyclones, see tropical cyclones

Czech Republic, 54

D Da’esh, 75, 82

DAFP: Australia and the World, 1920-1930, 86

dairy products, 43

data requests, 46

death penalty, 83

defective administration, compensation for, 121

defence and security, 27, 28, 51-8

Pacific, 34

South Asia, 32

Southeast Asia, 31

see also arms control and counter-proliferation; protective security; terrorism

Democratic People’s Republic of Korea, 36, 55

Denmark, 53

Department of Agriculture, Water and the Environment, 95

Department of Defence (Australian Defence Force), 36, 72, 82, 95, 227

Department of Health, 95

Department of Home Affairs, 47

depreciation and amortisation expenses, 106

deputy secretaries, 16, 118, 210-11

Desert Song Festival, 85

detriment caused by defective administration, 121

252 |

development assistance program, 59-76, 107, 218

Aid Governance Board, 118

memorandums of understanding, 28

Diamond Princess cruise ship, 26

Digital Earth Africa satellite imagery, 66

digital media, see information and communications technology; social media; websites and web services

Diplomatic Academy, 112

Director of Public Prosecution referrals, 96

disability, people with, 63, 67, 69, 75

New Colombo Plan (NCP) scholars, 37

staff, 117

Disability Rights Advocacy Fund, 67

disarmament, see arms control and counter-proliferation

disasters, see humanitarian crises

discrimination, 119

see also human rights

disinformation, 53

displaced persons, see refugees

diversity and inclusion, 117

Documents on Australian Foreign Policy, 86

Doherty Institute, 26

domestic property, 104, 224-5

E

e-commerce (digital trade), 40, 41, 43

e-learning courses, 112, 119

East Antarctica, 79

East Asia Summit, 26, 33, 34, 79, 237

East Timor, see Timor-Leste

ecologically sustainable development, see environment

economic and commercial diplomacy, see investment; trade

education, 39, 45, 69, 76, 84

Bangladesh, 66

Latin America, 83

New Colombo Plan, 36-8

Pacific, 31, 34, 62

Southeast Asia, 31, 64, 65

see also capacity building; scholarships and awards; staff learning and development

effectiveness, efficiency and transparency in development program, 70-1

Iraq package, 75

multilateral investments and engagement, 68, 77

effectiveness, efficiency and transparency of passport system, 96-8

elections, 32

to international organisations, 78, 80

electricity, see energy

Elsie Initiative, 79

email, 102

Smartraveller, supporting COVID-19 response, 92

Emergency Call Unit, 94

Emergency Management Australia, 94

emergency passports, 97

employees, see staff

employment arrangements, DFAT, 112, 118, 208

energy (electricity), 35, 62, 68

DFAT usage, 224-5

hydrogen and fuel cells, 27, 28, 44

off-grid solar products, 66

engineers, 49

Enterprise Agreement, 112

Enterprise Pandemic Plan, 114

Enterprise Risk Register, 113

environment (ecologically sustainable development), 223-5

marine, 28, 41, 79, 83, 223

see also climate change; energy

Eritrea, 78

essay competition, 48

Essential Eight Cyber Security Maturity Model (E8), 102

essential services and humanitarian corridor, 73

Estonia, 54

ethics, values and conduct, 119

Ethics Committee, 118

Ethiopia, 95

Europe, 82

cyber security, 53, 54

Germany, 44, 45

posts in, 111

Russia, 54, 80, 82

smartraveller website page visits, 93

see also United Kingdom

European Commission, 82

European Union (EU), 34, 43

ex-gratia payments, 121

exempt contracts, 122

expenses, see finance

export credit rules, 41

Export Finance Australia, 36, 44, 107, 227

COVID-19 Export Capital Facility, 46

exports, see trade

expression, freedom of, 78

external accountability, 120-1

extractive industry, see mining and minerals

F

face-matching service, 98

passport applications referred to, 96

face shields, 69

Facebook, 92, 93

fake news, 53

family violence, see violence against women and girls

farming, see agriculture

Federal Court actions, 120

females, see women and girls

FIFA Women’s World Cup, 86

Fiji, 29, 63, 68

humanitarian crises, 72, 73; preparedness, 74

Market Development Facility, 69

Suva, 103

INDEX

Fiji-Australia Vuvale Partnership, 29

films, 49

final aid quality checks, 71

finance, 106-7, 121-99, 214-18, 228-32

Comcare premium rate, 222

Pacific budget support, 29

reform, 110-11

salaries and remuneration, 112, 209-13, 237-8

see also purchasing

financial governance, 29, 64

financial literacy services, 63

Financial Sector Commission on Modern Slavery and Human Trafficking, 58

financial services, 76

DFAT banking process, 110, 111

financial statements, 127-99

financing against slavery and trafficking, 58

financing of terrorism, 53

fish and fisheries, 34, 40, 76, 223

irregular and unreported, 35, 83

Five Eyes group, 33

floods, 75

food security, 40, 69, 73

Myanmar, 64

Pacific, 29

see also agriculture

foreign aid, see development assistance

foreign court and tribunal actions, 120

foreign interference and disinformation, 53

foreign investment, see investment

Foreign Investment Review Board application assessments, 47

foreign nationals, repatriation of, 87

Foreign Policy White Paper, 16, 23, 24, 48, 51

Foreign States Immunities Act 1985, 120

Foundation for Innovative New Diagnostics, 61

France, 82

fraud control, 119

passports, 96

free trade agreements (FTAs), 41-4

Hong Kong, 43, 226

Indonesia (IA-CEPA), 28, 42-3, 48, 226

Japan, 27, 43

Pacific Agreement on Closer Economic Relations Plus (PACER Plus), 30

United Kingdom, 15, 43

United States, 24

freedom of information, 120

freedoms, 78

French Polynesia (Papeete), 103

fruit, 50

fuel cells, 27

full-time employees, 206

G G20, 27, 40, 78

gas, 45

| 253

REFERENCE MATERIAL

DFAT ANNUAL REPORT 2019-20

Gavi, 81

gender equality, see women and girls

Georgia, 54, 82

Geoscience Australia, 66

Germany, 44, 45

girls, see women and girls

Global Coalition to Defeat Da’esh, 82

global cooperation, 77-87, 237

Global Counterterrorism Forum, 52

Global Fund to Fight AIDS, Tuberculosis and Malaria, 67

Global Watch Office, 38

gold, 39, 45

governance and governance reforms, 28, 32, 61, 76, 78

financial, 29, 64

international organisations, 55, 68, 80

governance arrangements, DFAT, 118-19

Governor-General, 38, 83

grains, 25, 43, 50

grants, 123

grapes, 50

Green Lease Schedule Policy, 225

Group of Friends for Women in Nuclear initiative, 57

Guatemala, 83

H hand sanitiser, 69

harassment, 119

Harmony Week, 117

health, 61, 65, 71, 74, 76, 81

African Swine Fever, 30

measles, 73

sexual and reproductive, 67, 74, 78; births attended by skilled attendant, 76

see also COVID-19; medical supplies and personal protective equipment; water and sanitation; workplace health and safety

health security, 61, 81

health worker training, 65

Hong Kong, 25, 26

free trade agreement, 43, 226

investment agreement, 226

Honiara, 103

horticultural products, 43, 50

Hubei province and Wuhan, 26, 88, 90, 95, 97

human resources, see staff

human rights, 32, 78, 83, 227

Australian Human Rights Commission, 121

China, 25

see also women and girls

human trafficking and people smuggling, 32, 57-8

humanitarian aid quality checks, 71

humanitarian crises, 72-5, 76

Pakistan, 32

Rohingya, 32, 74

humanitarian crises, preparedness for, 74

hydrogen, 27, 28, 44

254 |

I

ICT, see information and communications technology

identity fraud, 96

immunisation and vaccines, 26, 61, 76, 81

import duties, see tariffs and import duties

imports, see trade

incidents reported to Comcare, 222

incomes, 76

Independent Evaluation Committee, 119

India, 28, 33, 34

cyber security, 53, 54

economic relations, 28, 42, 45, 50; WTO dispute, 83

New Delhi, 101

sustainable development investment, 66

virtual summit, 28; Joint Maritime Declaration, 35

India, the United States, Australia and the Difficult Birth of Bangladesh, 86

An India Economic Strategy to 2035, 28

Indian Ocean, 32, 35

Indian Ocean Rim Association (IORA), 32, 83

Indigenous Australians, 85, 122

New Colombo Plan (NCP) scholars, 37

staff, 117, 118, 208

Indigenous languages, 85

Indigenous people, 78

Indigenous Taskforce, 118

Indo-Pacific, 23-38

see also Pacific; South Asia; Southeast Asia

Indo-Pacific Centre for Health Security, 61

Indonesia, 27-8, 33, 34, 78

Bali Process, 58

counter-terrorism, 52

development assistance, 63, 64, 65, 67

economic relations, 28, 30, 42-3, 226; WTO dispute, 40

media delegation visit to, 48

pneumococcal vaccine, 81

smartraveller website page visits, 93

Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), 28, 42-3, 48, 226

Indonesia-Australia Comprehensive Strategic Partnership Plan of Action, 27-8

information and communications technology (cyber issues), 28, 33, 34, 53-4

Singapore, agreement with, 43

see also social media; websites and web services

information and communications technology (cyber issues), Department, 101-2

delivered to partner agencies, 111

financial management system, 110-11

security clearance processes, 100-1

see also intranet; social media; websites and web services

Information Publication Scheme, 120

infrastructure, 33, 34, 35-6, 76

Pacific, 35; New Guinea, 35, 62

South Asia, 66

telecommunication cables, 30, 35

Timor-Leste, 30

Intelligence Community, 58

Internal Audit Branch, 118-19

international agreements, see treaties and other international agreements

international aid, see development assistance program

International Atomic Energy Agency, 55, 57

International Civil Aviation Organization Council, 80

International Coral Reef Initiative, 28

International Criminal Court, 79

International Development Association fund, 67

International Disability Alliance, 67

International Freight Assistance Mechanism, 26, 46

international law, 79-80, 226

see also treaties and other international agreements

International Maritime Organization Council, 80

International Maritime Security Construct, 82

international organisations, 67-8, 77-81, 107, 229-30

Organisation for Economic Co-operation and Development (OECD), 41

World Bank, 64, 67

World Trade Organization (WTO), 40, 83

see also United Nations

international rules-based order, 24, 34-5, 40, 41, 77-81

international security, see defence and security

International Skills Development Program, 117

International Strategy on Human Trafficking and Slavery, 58

International Women’s Development Agency, 33

International Working Group on Export Credits, 41

International Year of Indigenous Languages, 85

internet services, see websites and web services

intranet, 100

‘Faces of Diversity’ page, 117

online learning and development courses, 112, 119

investment and investment markets, 39, 41, 47, 227

China, 25

Indonesia, 48

Malaysia, 31

Uruguay, 83, 226

Vietnam, 31

Iran, 55, 88

Tehran, 101, 103

Iraq, 75, 82-3

iron ore, 39, 45

Israel, 83, 95

Italy, 93

J

Japan, 26-7, 33, 40, 88

cyber security, 54

economic relations, 27, 43, 44, 45

infrastructure investment, 35, 36

North Korea, 36

Smartraveller website page visitors, 93

Japan-Australia Economic Partnership, 27, 43

Joint Statement on Advancing Responsible State Behaviour of Cyber Space, 54

INDEX

Jones Lang LaSalle (JLL), 105

Jordan, 74, 95

journalism, 83

see also media

K kangaroo meat, 43

Kazakhstan, 54

Keep Australia and Australians safe and secure, 51-8

Kenya, 95

key management personnel, 210-11, 237

Khashoggi, Jamal, 78

kidnap cases, 88

Kiribati, 30, 63

Tarawa, 103

Korea, Republic of, 28, 33, 44, 45, 78

Korea, North, 36, 55

Koror, 29, 103, 111

L

laboratory services and supplies, 30

languages, 112

Indigenous, 85

information provided in, 30, 67, 69, 93

spoken at home, 37, 117

Laos, 32, 65

Latin America, 41, 82-3

evacuation from, 91, 97

investment agreement, 83, 226

Law of the Sea, 34, 80

learning and development, see education; staff learning and development

Lebanon, 74

Legislation, 96

counter-terrorism financing powers, 53

lethal autonomous weapons systems (LAWS), 57

LGBTI rights, 78

LGBTI staff, 117

liabilities, 106-7

Liechtenstein, 58

LinkedIn, 37

locally engaged staff, 112

location of staff, 207

lost or stolen passports, 97

M Madrid COP25 Climate Conference, 79

Majuro, 103

Malaysia, 31, 41, 52, 95

ASEAN Regional Forum Workshop, 34, 80

corrections to Annual Report 2018-19, 237

Malaysia Airlines Flight MH17, 80

Maldives, 32, 80

management and accountability, 110-23

marine environment, 28, 41, 79, 83, 223

| 255

REFERENCE MATERIAL

DFAT ANNUAL REPORT 2019-20

maritime boundaries, 34

treaty with Timor-Leste, 30, 79-80

maritime security, 30, 33, 34-5, 82

Sri Lanka dialogue, 32

market insights reports, 49

market research, 228

markets and market access, 39-50

China, 25, 26, 49

France, 82

India, 28, 50

Indonesia, 28, 30, 42-3, 226

Japan, 27

Malaysia, 31

Timor-Leste, 30

United States, 24

Vietnam, 31

see also free trade agreements

Marshall Islands (Majuro), 103

Mauritius, 83

measles, 73

meat, 25, 43

media, 93

delegation to Indonesia, 48

Morocco, 83

medical supplies and personal protective equipment, 13, 24, 43, 46

hand sanitiser and face shields, 69

Indo-Pacific region, 61, 63, 65, 73

Middle East, 66, 74

World Health Organization funding, 81

Wuhan, 26

Mekong, 32

Mekong-Australia Program on Transnational Crime, 64

memorandums of understanding ICT, 111

development cooperation, 28

mutual recognition of professional qualifications, 49

mental health and wellbeing, 113

Mexico, 56, 78

MH17 victims, 80

Microsoft Teams, 102

Middle East, 66, 74-5, 82-3

DFAT-Defence Crisis Preparedness Assurance Team visits, 95

human rights, 78

posts in, 101, 103

MIKTA, 78

military training, 31

Mindanao, 32, 64

Minderoo/Walk Free, 58

mines (anti-personnel), 57

mining and minerals, 39, 44, 45, 49

Africa, 52, 83

Ministerial Advisory Council on FTA Negotiations, 43-4

ministers, 38

modern slavery, 58

256 |

Morocco, 83

Rabat, 103

motor vehicles, 45

multilateral partners, see international organisations

music, 32, 85

mutual recognition of professional qualifications, 49

Myanmar, 32, 64, 74

Ayerwaddy River, 34

N Nabilan program, 65

Nakanamanga language, 85

National Australian Built Environment Rating System (NABERS), 225

National Bushfire Recovery Agency, 122

National Bushfire Recovery Fund, 46

National Critical Minerals Strategy, 44

National Foundation for Australia-China Relations, 26

National Hydrogen Strategy, 44

National Intelligence Community, 58

national security, see defence and security

natural disasters, see crises

natural gas, 45

Nauru, 63

navigation, freedom of, 82

Nazareth Centre for Rehabilitation, 33

Nepal, 32, 58, 66

nerve agents, 56

Netherlands, 54, 58, 80

New Colombo Plan (NCP), 36-8

New Delhi, 101

New Zealand, 28, 33, 56, 86, 87

free trade agreements, 30, 41, 43

PNG Electrification Partnership, 35

Whakaari/White Island volcanic eruption, 95

Nicole Fitzsimons Foundation, 93

Nigeria (Abuja), 83, 101, 103

Niue, 30

Alofi, 103

non-government organisations (NGOs), 69-70, 237

non-ongoing employees, 203, 205

non-proliferation and disarmament, see arms control and counter-proliferation

non-salary benefits, 112

non-tariff barriers, 50

North Korea, 36, 55

Northern Australia, 30, 226

Novichok agents, 56

Nuclear Non-Proliferation Treaty, 55

nuclear weapons, see arms control and counter-proliferation

O oceans, see marine environment; maritime security

office accommodation planning, 225

Office for Women, 78

Office of Development Effectiveness, 71, 119

Office of the Australian Information Commissioner, 120

Office of the Chief Economist, 46

Office of the Pacific, 29, 210-11

essential services and humanitarian corridor, 73

maritime security, 34

PacificAus Sports, 31

PNG Electrification Partnership, 35

official development assistance, 59, 60, 218

Ombudsman, 121

ongoing employees, 202, 204

online services, see websites and web services

operating result, 106-7

Operations Committee, 118

organisation and structure, 16-19, 110-11

Organisation for Economic Co-operation and Development (OECD), 41

Organisation for the Prohibition of Chemical Weapons, 56

ORIMA Research, 98, 105

outcomes and programs, 17, 215-17

outer space, 54-5

overseas aid, see development assistance program

overseas-born staff, 117

overseas court and tribunal actions, 120

overseas investment, see investment

overseas posts, 38, 100-5, 110, 112, 233-6

business continuity planning, 114

corrections to Annual Report 2018-19, 238

established in 2019, 29

reDESIGN program, 111

staff, 114; locally engaged, 112

see also consular services

Overseas Property Office and Services (OPO), 105

overseas travel, see tourism; travel

P

Pacific, 28-31, 62-3, 80, 87, 112, 227

arms control, 57

climate change, 35, 62, 74, 79; Kainaki II Declaration, 34

humanitarian crises, 72-4

infrastructure investment, 35, 62

maritime security, 34

posts in, 29, 103

vaccines, eligibility for, 81

women and girls, 29, 31, 33, 63, 78; Australia Awards scholars, 85

young people, 78

see also Fiji; New Zealand; Papua New Guinea; Samoa; Solomon Islands; Timor-Leste; Vanuatu

Pacific Agreement on Closer Economic Relations Plus (PACER Plus), 30

Pacific Alliance FTA, 43

Pacific and Timor-Leste COVID-19 Response Package, 63

Pacific Church Partnership Program, 31

Pacific Fusion Centre, 34

Pacific Girl program, 63

Pacific Humanitarian Pathway, 29, 73

Pacific Islands Forum, 29, 34, 68, 73

Pacific Labour Scheme, 30

Pacific Reset, 28

Pacific Step-up, 16, 28-31, 60, 63

Pacific Women, 29, 33, 63, 78

PacificAus Sports, 31, 86

Pakistan, 32, 66

Palau (Koror), 29, 103

Palestinian Territories, 66

pandemic, see COVID-19

Papeete, 103

paper, 40, 43

Papua New Guinea, 63, 95

Bougainville, 33

budget alignment loan, 29

cyber security, 54

health, 81; African Swine Fever, 30

infrastructure, 35, 62

Port Moresby, 101, 103

Paris Agreement, 79

parliamentary committees, 226-7

part-time employees, 206

Partnerships for Recovery strategy, 60, 65, 70

passports, 96-9, 120

paper used, 225

peacebuilding and peacekeeping, 28, 80, 230

Philippines, 64-5

women’s role and gender, 33, 52, 57, 78-9

people smuggling and human trafficking, 32, 57-8

people-to-people links, 25, 28, 70

Arab countries, 83

Japan, 27

New Colombo Plan, 36-8

Pacific, 31, 86

see also scholarships and awards

People’s Republic of China, see China

performance management, 116

performance measures

Australians overseas: consular, 88, 92, 94; passports, 96, 98, 99

development assistance program, 60, 70, 72

economic, trade and investment agenda, 40, 42, 46, 48

global cooperation, 77, 82, 83, 86

Indo-Pacific, 23, 36, 38

international security, 51, 57, 58

overseas presence, 100, 101, 103, 104, 105

performance report, 23-107

ratings, 16

performance reporting on multilateral investments, 68

Performance, Risk and Resourcing Committee, 116, 118, 210

personal protective equipment, see medical supplies and personal protective equipment

Peru, 43, 97

petroleum, 45

INDEX

| 257

REFERENCE MATERIAL

DFAT ANNUAL REPORT 2019-20

Philippines, 32, 63, 78, 95

counter-terrorism, 52

peace process, 64-5

plain packaging measure, 40

plans and planning, 16, 116

asset management, 105

business continuity, 114-15

capital management, 121

crisis action, 95

office accommodation, 225

property management, 103

workforce, 112

pneumococcal vaccine, 81

Port Moresby, 101, 103

Port of Spain, 101

Port Vila, 103

portfolio, 18

Portfolio Budget Statements (PBS), 116

outcomes and programs, 17

post-secondary qualifications, 76

prefabricated construction, 103, 224

Pride in Diversity, 117

prime ministerial travel, 24, 30, 31, 34, 38, 68

priority passports, 96

privacy, 120

private sector development, 53

Fiji, 69

Papua New Guinea, 29

Vietnam, 64

private sector partnerships, 68, 123

New Colombo Plan, 37, 38

procurement, see purchasing

professional qualifications, recognition of, 49

programs and outcomes, 17, 215-17

Promote a stable and prosperous Indo-Pacific, 23-38

property management, 102-4, 223-4

protocol services, 86-7

Provide a secure and effective overseas presence, 100-5

public diplomacy, 83-6

see also people-to-people links; scholarships and awards

purchasing (procurement), 106, 121-3

advertising and market research, 228

Australia now support, 85

purpose, 16

Pursue our economic, trade and investment agenda, 39-50, 237

Q Qantas, 90, 97

Quadrilateral Foreign Ministers’ Meeting, 33

qualifications, recognition of, 49

Queensland Coroner’s Court, 120

258 |

R R series passport, 99

Rabat, 103

Rakhine State, 32, 64

rare earths, 27

Rarotonga, 29, 103

recruitment, 112, 117

Red Cross, 72, 79

Red Frogs Australia, 93

reDESIGN program, 111

reefs, 28, 223

refugees and internally displaced people, 57, 74, 75

Rohingya, 32, 74

regional collaboration, 33-4

Regional Comprehensive Economic Partnership (RCEP), 42

regional/remote Australia, New Colombo Plan (NCP) scholars from, 37

regional security, see defence and security

rehabilitation management, 222

religion, 78

remote access permissions, 115

remuneration, 112, 209-13, 237-8

renewable energy, 62, 66, 68, 224

repatriation of Australian citizens, see Australians overseas, return of

repatriation of foreign citizens, 86-7

reportable child sex offenders, 96

reproductive health, see sexual and reproductive health

Republic of Korea, 28, 33, 44, 45, 78

requests for trade and investment data, 46

revenue, see finance

RG Casey Building, 101, 224-5

rice, 43

Richardson Review, 58

risk management, 113

security, 100, 101

workplace health and safety, 221

roads, 62, 76

robotics, 57

Rohingya crisis, 32, 74

Royal Australian Air Force, 95

Royal Caribbean Lines, 95

Rubicon Water, 47

rules-based international order, 24, 34-5, 40, 41, 77-81

Russia, 54, 80, 82

S

Sahel, 52

salaries and remuneration, 112, 209-13, 237-8

Samoa, 29, 30, 63, 67, 68

Apia, 103

measles outbreak, 73, 94

sanctions, 53, 79, 227

North Korea, 36

Russia, 82

satisfaction

passport clients, 98

property services, 105

protocol services delivery, 86-7

Saudi Arabia, 40, 78

Scheme for Compensation for Detriment caused by Defective Administration, 121

scholarships and awards, 31

Australia Awards, 60, 66, 85

New Colombo Plan (NCP), 37

seafood, 50

Seasonal Worker Programme, 30, 62

Secondary Schools Scholarships Program, 31

Secretary, 16, 33, 102, 112, 117

committees chaired and advised by, 118

remuneration, 210-11

review of year, 12-14

security, see defence and security; protective security

security clearances, 100-1

Security Enhancements Program, 101

Security Framework, 100-1

Senior Executive Service (SES) staff, 112, 212

gender equality, 117

Service Level Arrangement for Management Services, 111

services, trade in, 39, 40, 43, 45, 49, 50

Services Australia, staff redeployed to, 88, 97

Services Export Action Plan, 49

Sevastopol, 82

sexual and reproductive health, 67, 74, 78

births attended by skilled attendant, 76

sexual equality, see women and girls

sexual exploitation and abuse, 119

child sex offenders, 96

see also violence against women and girls

sheep meat, 43

Shepparton, 47

shipping, 49

see also cruise ships; maritime security

sign language interpretation, 67

Singapore, 31, 33, 95

agreements with, 24, 31, 43, 49, 53

smartraveller website page visits, 93

Wilton Park conference, 54-5

Singapore Institute of International Affairs, 53

skills development, see capacity building

slavery, 58

small arms and light weapons, 57

small business, 122-3

Smartraveller services, 92-3

Smith, Ric, 86

SMS travel advice, 92, 93

Snowy Mountains bushfires, 24

social media, 44, 69

COVID-19 response, 84, 92

travel advisories, 92, 93

social protection, 63, 76

soft power, 83-6

see also people-to-people links; scholarships and awards

Solomon Islands, 30, 31, 63, 67, 72

disaster preparedness, 74

Honiara, 103

infrastructure, 35

Somalia, 75

sorghum, 43

Soul Harvest Gospel Choir, 85

South America, see Latin America

South Asia, 32, 68, 86

development assistance program, 65-6

terrorism and violent extremism, 32

see also India

South Asia Regional Infrastructure Connectivity Program, 66

South Asia Regional Trade Facilitation Program, 66

South China Sea, 34

South Korea, see Korea, Republic of

South Pacific, see Pacific

South Sudan, 75

Southeast Asia, 31-2

Ambassador for Counter Terrorism consultations, 52

development assistance program, 64-5, 74

DFAT-Defence Crisis Preparedness Assurance Team visits, 95

Economic Governance and Infrastructure Initiative, 36

maritime security, 34

smartraveller website page visits, 93

terrorism and violent extremism, 32, 52

see also ASEAN

space, responsible behaviour in, 54-5

Spain, 82

sponsors, 231-2

sport, 31, 86

Sri Lanka, 32, 68

staff, 112-13, 117, 202-13

court and tribunal actions, 120

COVID-19 redeployments, 31, 38, 97, 114

expenses, 106

performance management, 116

secondments, 41

security clearances, 100-1

values, conduct and ethics, 119

working from home, 115

see also workplace health and safety

Staff and Family Support Office, 113

staff learning and development, 112, 119

crisis management, 95-6

disability confidence, 117

health and wellbeing, 113

security awareness, 100, 101

staff recruitment, 112, 117

staff welfare, 113

Statement on Preventing Exploitation of the Internet for

INDEX

| 259

REFERENCE MATERIAL

DFAT ANNUAL REPORT 2019-20

Terrorism and Violent Extremism Conducive to Terrorism, 27

steel, 24

Step-up in Pacific and Timor-Leste, 16, 28-31, 60, 63

stolen or lost passports, 97

Strategic Policy Committee, 118

sugar, 40, 43, 83

Support Australians overseas, 88-99

Sustainable Development Goals, 61

Suva, 103

Syria, 56, 74, 75, 82

T

Tarawa, 103

tariffs and import duties, 42-3, 46

China, 25

United States, 24

teachers, 65, 76

Tehran, 101, 103

telecommunications, 45, 68

cables, 30, 35

tenders, see purchasing

terrorism and violent extremism, 32, 51-3, 82

Da’esh, 75, 82

Statement on Preventing Exploitation of the Internet for Terrorism and Violent Extremism Conducive to Terrorism, 27

Thailand, 32, 45, 52, 79

smartraveller website page visits, 93

timeliness

passport processing, 96

security clearances, 101

Timor-Leste, 30-1, 63, 65, 67, 73

ASEAN Regional Forum Workshop, 34, 80

Maritime Boundaries Treaty, 30, 79-80

Timor Sea, 30, 80

tobacco plain packaging measure, 40

Tonga, 30, 63, 72, 74

Parliament House, 62

Torres Strait Islanders, see Indigenous Australians

tourism, 39, 40, 49

bushfire response, 46, 84, 107

South Asia, 66

Vietnam, 60

see also consular services; passports

Tourism Australia, 107, 227

trade, 39-50, 68, 76

arms control, 56-7

with China, 25, 45

corrections to Annual Report 2018-19, 237

with Japan, 27, 45

parliamentary committees of inquiry, 226, 227

with Republic of Korea, 28, 45

South Asia Regional Trade Facilitation Program, 66

with United States, 24

see also investment; markets and market access

260 |

trade delegations, 26, 28

trade disputes, 40

trade in services, 39, 40, 43, 45, 49, 50

trafficking in humans and people smuggling, 32, 57-8

training, see capacity building; education; staff learning and development

Transform22, 110

transnational crime, 33, 64, 79

people smuggling and human trafficking, 32, 57-8

see also terrorism and violent extremism

transparency, see effectiveness, efficiency and transparency in development program

transport infrastructure, 62, 76

travel, 38, 45, 225

Governor-General, 38, 83

Prime Minister, 24, 30, 31, 34, 38, 68

to/from New Zealand, 28

see also Australians overseas, return of; consular services; passports; tourism

travel advice, 25, 91, 92-3

Travellers’ Emergency Loan Scheme, 91

treaties and other international agreements, 226

Antarctica, 79

arms control and non-proliferation, 55, 56, 57

climate change, 79

cyber cooperation, 31, 53

Law of the Sea, 34, 80

marine biological diversity, 223

maritime boundaries, 30, 79-80

military training, 31

mutual recognition of professional qualifications, 49

WTO negotiations, 40

tribunals, matters before, 120

Trilateral Infrastructure Partnership, 36

Trilateral Strategic Dialogue, 33

Trinidad and Tobago (Port of Spain), 101

tropical cyclones, 74

Gila, 62

Harold, 31, 72, 73, 95

Turkey, 78, 82

Tuvalu, 34, 63

Twitter, 92, 93

2+2 consultations, 27, 28

U Ukraine, 82

Umbrella Group, 79

UN Women, 65, 66, 78

undersea cables, 30, 35

UNESCO International Year of Indigenous Languages, 85

United Kingdom, 53, 82

free trade agreement, 15, 43

United Nations, 53, 80

United Nations Children’s Fund (UNICEF), 68, 75

United Nations Convention on the Law of the Sea, 34, 80

United Nations Development Programme, 33, 68

United Nations Disarmament Commission, 55

United Nations Forum on Business and Human Rights, 58

United Nations Framework Convention on Climate Change, 79

United Nations General Assembly, 56, 78

First Committee, 55

United Nations Group of Governmental Experts on Lethal Autonomous Weapons Systems, 57

United Nations High Commissioner for Refugees, 75

United Nations Human Rights Council, 78, 83

United Nations Open-Ended Working Group on cyber, 54

United Nations Population Fund, 75

United Nations Security Council

resolutions, 52, 55, 78

sanctions, 36

statement by Ambassador for Cyber Affairs and Critical Technology, 54

United Nations Trust Facility Supporting Cooperation on Arms Regulation, 57

United States, 24, 33, 82, 86

cyber security, 54

infrastructure investment, 35, 36

trade, 45

Washington, 101, 103

University of Adelaide, 49

University of the South Pacific, 62

university students, 36-8

Uruguay, 83, 226

V vaccines and immunisation, 26, 61, 76, 81

values, conduct and ethics, 118, 119

Vanuatu, 31, 63, 72, 73, 74

Port Vila, 103

Soul Harvest Gospel Choir, 85

Venezuela, 83

ventilators, 13, 74

Victoria, 29, 47

Victorian Department of Agriculture, 30

video conferencing, 31, 32, 46, 102

Australia-India virtual summit, 28, 35

Vietnam, 31, 33, 34, 68

development assistance, 64

error in 2018-19 Annual Report, 237

gender equality, 34, 60, 64

human rights, 32

Vietnam-Australia Economic Ministers’ Meeting, 31

violence against women and girls, 33, 57, 65, 71, 74, 76

Afghanistan, 66

survivor support, 79

visas, 30, 87

INDEX

volcanic eruption, NZ, 95

Voluntary Principles Initiative on Security and Human Rights, 44

volunteers, 70

W Washington, 101, 103

water and sanitation, 28, 74, 76

Australian Water Partnership program, 34

Water for Women program, 65

weapons, 57

see also arms control and counter-proliferation

websites and web services, 53-4, 102

Aid Program Performance Reports, 71

consular crisis planning and information sharing, 95

Digital Earth Africa satellite imagery, 66

e-commerce (digital trade) rules, 40, 41, 43

market insights reports, 49

NTB Gateway, 50

Pacific Fusion Centre, 34

passport applications, 98

Smartraveller, 92, 93

terrorists’ internet use, 27, 33

webinars, 37, 44, 52

see also intranet; social media; video conferencing

West Africa mining, 52, 83

Whakaari/White Island volcanic eruption, 95

wheat, 43

White Paper, 16, 23, 24, 48, 51

Wilton Park conference, 54-5

wine, 40, 43

women and girls (gender equality), 41, 65, 69, 71, 78-9

Afghanistan, 32, 66, 75

Australia Awards scholars, 66, 85

impacts of COVID-19, 31, 82

India, 66

Indigenous Australians, 85

in international organisations, 55, 57, 78, 79

on management committees, 76

New Colombo Plan (NCP) scholars, 37

Pacific, 29, 31, 33, 63, 78; Australia Awards scholars, 85

Rohingya, 32

social protection, 63

terrorism and violent extremism, role in countering, 52

Vietnam, 34, 60, 64

see also violence against women and girls

Women in Leadership strategy, 117

Women, Peace and Security agenda, 33, 52, 57, 78-9

workforce, see staff

workforce planning, 112

workplace diversity and inclusion, 117

workplace health and safety, 113, 119, 221-2

bushfire-related hazards, 104, 221, 224

COVID-19, 114, 115, 117, 222

property management services, 103

see also protective security

| 261

DFAT ANNUAL REPORT 2019-20

Workplace Relations Committee, 118

World Bank, 64

International Development Association fund, 67

World Food Programme, 29, 73, 75

World Health Organization, 67, 81

World Heritage Committee, 80

World in a Box, 49

World Trade Organization (WTO), 40, 83

Wuhan and Hubei province, 26, 88, 90, 95, 97

X Xinjiang Uyghur Autonomous Region, 25, 78

Y

young people, 48, 78

travel safety messages to, 93

Z

Zimbabwe, 95

262 |

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