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PORTFOLIO ADDITIONALESTIMATES STATEMENTS 2013-14

ENVIRONMENT PORTFOLIO

EXPLANATIONS OF ADDITIONAL ESTIMATES 2013-14

© Commonwealth of Australia 2014

ISBN 987176004 4299

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GREG HUNTPARLIAMENT HOUSE

CANBERRA 2600

President of the SenateAustralian SenateParliament HouseCANBERRA ACT 2600

SpeakerHouse of RepresentativesParliament HouseCANBERRA ACT 2600

Dear Mr PresidentDear Madam Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the2013-14 Additional Estimates for the Environment Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the funding requirements being sought for the Portfolio.

I present these statements by virtue of my ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

iii

Abbreviations and conventions The following notations may be used:

NEC/nec not elsewhere classified- nil.. not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

ENQUIRIES

Should you have any enquiries regarding this publication please contact Lily Viertmann, Chief Financial Officer in the Department of the Environment on (02) 6274 1812.

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au.

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USER GUIDETO THE

PORTFOLIO ADDITIONALESTIMATE STATEMENTS

USER GUIDE

The purpose of the Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements (PB Statements), is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES include an Agency Resource Statement to inform Parliament of the revised estimate of the total resources available to an agency, the focus of the PAES is on explaining the changes in resourcing by outcome(s) since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or non-financial planned performance of programs supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4) 2013-14. In this sense the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook (MYEFO) 2013-14 is a mid-year budget report which provides updated information to allow the assessment of the Government’s fiscal performance against its fiscal strategy, the PAES update the most recent budget appropriations for agencies within the portfolio.

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Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User Guide

Provides a brief introduction explaining the purpose of the PAES.

Portfolio Overview

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

Agency Additional Estimates Statements

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

Section 1: Agency Overview and Resources

This section details the total resources available to an agency, the impact of any measures since Budget, and impact on Appropriation Bills Nos. 3 and 4.

Section 2: Revisions to Outcomes and Planned Performance

This section details changes to Government outcomes and/or changes to the planned performance of agency programs.

Section 3: Explanatory Tables and Budgeted Financial Statements

This section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.

Glossary Explains key terms relevant to the Portfolio.

Index (Optional) Alphabetical guide to the Statements

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CONTENTS

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

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

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

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PORTFOLIO OVERVIEW

Portfolio Overview

PORTFOLIO OVERVIEW

PORTFOLIO STRUCTURESince the 2013-14 Budget, the outcome structure of the Portfolio has changed through the Administrative Arrangements Order announced by the Prime Minister and approved by the Governor-General on 18 September 2013. These changes include:

the change of the portfolio name from the Sustainability, Environment, Water, Population and Communities Portfolio to the Environment Portfolio;

the change of the department name from the Department of Sustainability, Environment, Water, Population and Communities to the Department of the Environment;

the transfer of responsibility for Indigenous Environmental Policy to the Department of the Prime Minister and Cabinet; and

the transfer, from the former Portfolio of Industry, Innovation, Climate Change, Science, Research and Tertiary Education, of responsibility for:

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

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

o greenhouse emissions and energy consumption reporting;

o climate change adaptation strategy and co-ordination;

o co-ordination of climate change science activities;

o renewable energy;

o greenhouse gas abatement programmes; and

o community and household climate action.

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

3

Portfolio Overview

MINISTER AND PORTFOLIO RESPONSIBILITIESThe Portfolio is led by the Minister for the Environment and comprises the Department, six prescribed agencies1 and two Commonwealth Authorities2.

The Department provides leadership on environment, domestic climate change, water, and heritage matters with a national focus, or matters that are the direct responsibility of the Australian Government. In addition to these roles, the Department is also responsible for advancing Australia’s interests in the Antarctic.

Bureau of Meteorology

The Bureau of Meteorology is an executive3 and prescribed agency and is responsible for the outcome:

Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

The Bureau is Australia’s national meteorological authority. It makes observations of the atmosphere, space, oceans, water and the land, provides forecasts of weather, climate and water availability, issues extreme weather warnings, studies climate variability and change, assesses the nation’s water resources, and supports international cooperation in these areas. The Bureau’s work supports all Australians including the Australian Defence Force and key sectors such as emergency management, aviation, transport, water management, agriculture and environmental management. The Bureau operates under the Meteorology Act 1955 and the Water Act 2007.

1 ‘prescribed agency’ as defined under the Financial Management and Accountability Act 1997.2 ‘Commonwealth Authority’ as defined under the Commonwealth Authorities and Companies

Act 1997.3 ‘executive agency’ as defined under the Public Service Act 1999.

4

Portfolio Overview

Climate Change Authority

The Climate Change Authority is a statutory4 and prescribed agency that is responsible for the outcome:

Provide expert advice to the Australian Government on climate change mitigation initiatives, including the level of carbon pollution caps, the carbon price mechanism, the Renewable Energy Target and progress in achieving Australia’s emissions reduction targets, through conducting periodic reviews and undertaking climate change research.

The Government introduced a Bill to abolish the Authority into the Parliament in November 2013, which is currently being considered by the Senate. The Bill provides that the Authority will be abolished on a date to be proclaimed or 6 months after Royal Assent, whichever is earlier.

Clean Energy Regulator

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

Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of a carbon price on liable emissions intensive businesses and other entities (until such time as the carbon price is repealed); promoting additional renewable electricity generation; and land-based initiatives that support carbon abatement.

The Regulator undertakes a broad range of functions to facilitate participation in and ensure the integrity of Australia’s carbon pricing mechanism and previously established mechanisms for monitoring and strengthening Australia’s response to climate change. Its vision is to support Australia’s transition to a low carbon economy through an informed and efficient market for carbon and investment in renewable energy.

The Government introduced bills to repeal the carbon pricing mechanism and related measures imposing equivalent carbon prices in November 2013, which are currently being considered by the Senate. The Bills provide that carbon price liabilities will no longer arise after 30 June 2014.

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

5

Portfolio Overview

Director of National Parks

The Director of National Parks is a Commonwealth and statutory5 authority and is responsible for the outcome:

Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.

The Director manages the Commonwealth’s terrestrial and marine reserves and conservation zones, including Kakadu and Uluru–Kata Tjuta National Parks, and provides national leadership in protected area management. The Director operates under the Environment Protection and Biodiversity Conservation Act 1999.

Great Barrier Reef Marine Park Authority

The Great Barrier Reef Marine Park Authority is a prescribed and statutory agency and is responsible for the outcome:

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

The Authority protects and conserves the World Heritage values of the Great Barrier Reef and operates under the Great Barrier Reef Marine Park Act 1975.

Murray-Darling Basin Authority

The Murray-Darling Basin Authority is a prescribed and statutory agency, established by the Water Act 2007, and is responsible for the outcome:

Equitable and sustainable use of the Murray-Darling Basin by governments and the community including through development and implementation of a Murray-Darling Basin Plan, operation of the River Murray system, shared natural resource management programs, research, information and advice.

The Authority is responsible for planning integrated management of the water resources of the Murray-Darling Basin. The Authority has developed, and will implement and enforce, the Basin Plan, which includes a sustainable cap on surface and groundwater diversions across the Basin, an Environmental Watering Plan, a Water Quality and Salinity Management Plan and water trading and transfer rules.

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

6

Portfolio Overview

National Water Commission

The National Water Commission is a prescribed and statutory agency within the portfolio and is responsible for the outcome:

Informed decisions by governments on national water issues, and improved management of Australia’s water resources, through advocacy, facilitation and independent advice.

The Commission operates under the National Water Commission Act 2004, and works to improve water management across Australia by providing assessments and advice, and undertaking activities that promote the National Water Initiative.

Sydney Harbour Federation Trust

The Sydney Harbour Federation Trust is a Commonwealth and statutory authority and is responsible for the outcome:

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

The Trust is responsible for conserving and planning the future uses of former military bases and other Commonwealth land around Sydney Harbour. The Trust operates under the Sydney Harbour Federation Trust Act 2001.

7

Portfolio Overview

Figure 1: Environment Portfolio Structure and Outcomes

8

Minister for the EnvironmentThe Honourable Greg Hunt MP

Parliamentary Secretary to the Minister for the Environment Senator the Honourable Simon Birmingham

Great Barrier Reef Marine Park AuthorityChairperson - Dr Russell Reichelt

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

Sydney Harbour Federation TrustExecutive Director - Mr Geoff Bailey

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

National Water CommissionActing Chief Executive Officer - Ms Kerry Olsson

Outcome: Informed decisions by governments on national water issues, and improved management of Australia's water resources, through advocacy, facilitation and independent advice.

Director of National ParksDirector - Ms Sally Barnes

Outcome: Conservation and appreciation of Commonwealth reserves through the provision of safe visitor access, the control of invasive species and working with stakeholders and neighbours.

Murray-Darling Basin AuthorityChief Executive Officer - Dr Rhondda Dickson

Outcome: Equitable and sustainable use of the Murray-Darling Basin by governments and the community including through development and implementation of a Basin Plan, operation of the River Murray system, shared natural resource

management programs, research, information and advice.

Department of the EnvironmentPortfolio Secretary - Dr Gordon de Brouwer

Outcome 1: The conservation and protection of Australia's terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing

Commonwealth protected areas.Outcome 2: Improved sustainability of Australia's population, communities and environment through coordination and development of sustainable population and communities policies, and the reduction and regulation of waste, pollutants

and hazardous substances.Outcome 3:Advancement of Australia's strategic, scientific, environmental and economic interests in the Antarctic by

protecting, administering and researching the region.Outcome 4: Adaptation to climate change, wise water use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water

resources.Outcome 5: Increased protection, awareness and appreciation of Australia's environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous

and historic places of national and World Heritage significance.Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth

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

implementation of a national response to climate change.

Bureau of MeteorologyDirector - Dr Rob Vertessy

Outcome: Informed safety, security and economic decisions by governments, industry and the community through the provision of information, forecasts, services and research relating to weather, climate and water.

Climate Change AuthorityChief Executive Officer - Ms Anthea Harris

Outcome: Provide expert advice to the Australian Government on climate change mitigation initiatives, including the level of carbon pollution caps, the carbon price mechanism, the Renewable Energy Target and progress in achieving

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

Clean Energy RegulatorChief Executive Officer - Ms Chloe Munro

Outcome: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of a carbon price on liable emissions intensive businesses and other entitites; promoting additional renewable electricity

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

Portfolio Overview

Portfolio ResourcesTable 1 shows for those agencies reporting in the PAES the additional resources provided to the portfolio in the 2013-14 budget year, by agency.

Table 1: Portfolio Resources 2013-14

9

Receipts TotalBill No. 3 Bill No. 4 Special

$m $m $m $m $m

Administered appropriations 0.350 0.088 - - 0.438 Departmental appropriations 4.966 38.141 - - 43.107 Clean Energy RegulatorDepartmental appropriations 3.118 5.264 - - 8.382 Total: 51.927

Resources available w ithin portfolio: 51.927

Appropriation

Department of the Environment

AGENCY ADDITIONAL ESTIMATES STATEMENTS

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

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

DEPARTMENT OF THE ENVIRONMENT

Section 1: Agency Overview and Resources...........................................................151.1 Strategic Direction.................................................................................................151.2 Agency Resource Statement.................................................................................171.3 Agency Measures Table........................................................................................221.4 Additional Estimates and Variations......................................................................261.5 Breakdown of Additional Estimates by Appropriation Bill......................................33

Section 2: Revisions to Agency Outcomes and Planned Performance................402.1 Resources and Performance Information..............................................................40

Section 3: Explanatory Tables and Budgeted Financial Statements.....................733.1 Explanatory Tables................................................................................................733.2 Budgeted Financial Statements............................................................................75

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Agency Additional Estimates Statements — Department of the Environment

DEPARTMENT OF THE ENVIRONMENT


1.1 STRATEGIC DIRECTION

Since the 2013-14 Budget, the change of government at the federal election in September 2013 has resulted in changes to the strategic priorities for the Department of the Environment. The key priority for the Department is implementing the new Government’s reform agenda, including its election commitments, along with meeting existing obligations under environmental and other legislation and international arrangements.

The four pillars of the Government’s Plan for a Cleaner Environment – Clean Air, Clean Land, Clean Water and Heritage Protection – are a guiding framework for water reform, environmental regulation, supporting Australia’s interests in Antarctica, natural resource management, biodiversity conservation and action on climate change.

Work is well advanced on fulfilling the Government’s commitment to repeal the carbon tax to lower costs for Australian businesses and ease cost of living pressures for households. The package of carbon tax repeal bills was introduced as the first item of legislative business for the 44th Parliament in November 2013. The bills have been passed by the House of Representatives and are currently before the Senate.

A Green Paper was released in December 2013 on the Emissions Reduction Fund, which will form the centrepiece of the Government’s Direct Action Plan. The Fund will work together with other features of the Direct Action Plan and the Renewable Energy Target to help meet the Government’s target of reducing greenhouse gas emissions by five per cent below 2000 levels by 2020.

The Department is progressing implementation of the Government’s commitment to establish a one stop shop for environmental approvals. This will accredit state and territory planning systems under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) to create a single environmental assessment and approval process. The one stop shop policy aims to simplify the approvals process for businesses, while maintaining high environmental standards. All states and territories have signed Memoranda of Understanding committing to implement a one stop shop, and the Government has signed assessment bilateral agreements with Queensland and New South Wales.

In support of the Government’s broader deregulation agenda, the Department is also progressing an audit of environmental regulation and identifying opportunities to reduce red tape and costs to business and the community.

15


Funding of $300 million was announced in the 2013-14 Mid Year Economic and Fiscal Outlook for the creation of the Green Army Programme, providing practical opportunities for young Australians to engage in grassroots environmental actions. Projects will commence in 2014-15 with a focus on supporting local communities to achieve tangible environmental and heritage conservation outcomes.

The Government is providing national leadership in water reform through investing in rural water use, management and efficiency projects. This is aimed at securing a sustainable future for irrigated agriculture and delivering lasting water returns to the environment. The Department has implemented a re-phasing of $650 million from Murray-Darling Basin programs for water buyback and infrastructure to spread four years worth of spending over six years, along with the amalgamation of two programmes – the Restoring the Balance in the Murray-Darling Basin programme and the Sustainable Rural Water Use and Infrastructure programme – to provide greater flexibility in managing the Government’s water reform priorities.

The Portfolio has also implemented savings to assist the Government to meet its Budget priorities. This has included savings of $45.0 million over the forward estimates to 2016-17 through reducing the functions of the former Department of Climate Change and Energy Efficiency and other savings associated with the repeal of the carbon tax.

Machinery of Government changes have resulted in the transfer of domestic climate change functions to the Department. A new Outcome 7 was created to reflect this responsibility in these Additional Estimates Statements. In addition, Indigenous functions have been transferred to the Department of the Prime Minister and Cabinet.

The Department is seeking additional appropriations for 2013-14, including an increase of $5.3 million in Appropriation Bill (No.3) 2013-14, and an increase of $38.2 million in Appropriation Bill (No.4) 2013-14. A detailed breakdown of these appropriations is provided in Table 1.2.

16


1.2 AGENCY RESOURCE STATEMENT

The Agency Resource Statement details the resourcing for the Department at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2013-14 Budget year, including variations through Appropriation Bill Nos. 3 and 4, Special Appropriations and Special Accounts.

17


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

18

Estimate as Proposed Total estimate Totalat Budget + Additional = at Additional

Estimatesavailable

Estimate appropriation

2013-14 2013-14 2013-14 2012-13$'000 $'000 $'000 $'000

Ordinary annual services 1

Departmental appropriationPrior year departmental

appropriation 2 84,402 - 84,402 77,068 Departmental appropriation 3 411,890 4,966 416,856 415,588 s32 Transfer from Industry 4 - 30,676 30,676 - Payment to CAC Act bodies 5 41,497 - 41,497 40,170 s31 Relevant agency receipts 6 91,343 2,354 93,697 100,220 Total 629,132 37,996 667,128 633,046

Administered expenses Outcome 1 - Biodiversity & Ecosystems 578,000 (58,324) 519,676 292,825 Outcome 2 - Sustainable Population

and Communities 25,178 - 25,178 11,005 Outcome 4 - Sustainable Water 246,121 (12,439) 233,682 364,029 Outcome 5 - Environmental Protection

and Heritage Conservation 9,743 350 10,093 11,666 Outcome 6 - Commonwealth

Environmental Water 27,433 - 27,433 24,700 s32 Transfer of function from 7 Industry Outcome 7 - Climate Change - 14,775 14,775 - Total 886,475 (55,638) 830,837 704,225

Total ordinary annual services including Special Accounts 1,515,607 (17,642) 1,497,965 1,337,271 Total ordinary annual services excluding Special Accounts A 1,205,165 (9,717) 1,195,448 1,149,757



19

Estimate as Proposed Total estimate Totalat Budget + Additional = at Additional

Estimatesavailable

Estimate appropriation

2013-14 2013-14 2013-14 2012-13$'000 $'000 $'000 $'000

Other services Administered expenses 8

Specific payments to States, ACT, NT and local governmentOutcome 4 - Sustainable Water 5,204 - 5,204 17,410 Outcome 5 - Environmental Protection

and Heritage Conservation 800 - 800 360 Total 6,004 - 6,004 17,770

Departmental non- operatingEquity injections 2,467 38,141 40,608 1,872 Prior year non-operating 2 1,202 - 1,202 - Total 3,669 38,141 41,810 1,872

Administered non- operatingAdministered assets and liabilities 6,261 88 6,349 162,180 Prior year administered assets and

liabilities appropriation 2 512,683 - 512,683 - Total 518,944 88 519,032 162,180

Total other services B 528,617 38,229 566,846 181,822

Total available annual appropriations 2,044,224 20,587 2,064,811 1,519,093

Total appropriations excludingSpecial Accounts 1,733,782 28,512 1,762,294 1,331,579



Special Accounts

20

Estimate Proposed Total Totalof prior year + at Budget = estimate available

amounts appropriationavailable in

2013-14 2013-14 2013-14 2012-13$'000 $'000 $'000 $'000

Special AccountsOpening balance 9 452,976 - 452,976 449,478 Appropriation receipts 310,442 (7,925) 302,517 187,514 Non-appropriation receipts to

Special Accounts 46,600 (190) 46,410 10,447 Total Special Account C 810,018 (8,115) 801,903 647,439

Total resourcingA+B+C 2,543,800 20,397 2,564,197 1,979,018

Less appropriations drawn fromannual or special appropriations aboveand credited to special accounts (310,442) 7,925 (302,517) (187,514)and/or CAC Act bodies through annual appropriations (41,497) - (41,497) (40,170)

Total net resourcing forEnvironment 2,191,861 28,322 2,220,183 1,751,334 1 Appropriation Act (No.1) 2013-14 and Appropriation Bill (No. 3) 2013-14.2 Estimate at Budget has been adjusted to reflect the actual balance carried from previous year forannual appropriations. 3 Includes $26.550 million for the Departmental Capital Budget (DCB) in 2013-14 (refer to table 3.2.5 for further details). For accounting purposes the DCB amount has been designated as 'contributions by owners'. 4 Ministerial responsibility for domestic Climate Change has been transferred from the Department of Industry consistent with the AAO changes announced on 18 September 2013. $30.676 million was transferred on the 31st of J anuary 2014 via a section 32 determination. 5 As per the Environment Protection and Biodiversity Conservation Act 1999 section 514S, Environmentis directly appropriated the Director of National Parks's (DNP) appropriations, which is then allocatedto DNP by the Secretary.6 FMA Act s31 receipts, also known as FMA Regulation 15 receipts, are an estimate.7 Ministerial responsibility for domestic Climate Change has been transferred from the Department of Industry consistent with the AAO changes announced on 18 September 2013. $14.775 million was transferred on the 31st of J anuary 2014 via a section 32 determination.8Appropriation Act (No.2) 2013-14 and Appropriation Bill (No. 4 ) 2013-14.9 Estimated opening balance for special accounts (less 'Special Public Money' held in accounts suchas Services for Other Entities and Trust Moneys account as they do not constitute funds availableto the department for operations). For further information on special accounts see table 3.1.1.

Reader note: All figures are GST exclusive.



Third Party Payments from and on behalf of other agencies

21

Estimate at Budget

Estimate at Additional Estimates

2013-14 2013-14$'000 $'000

Payments made to CAC Act bodies within the portfolioDepartmental

Director of National Parks Appropriation Act (No.1) 2013-14 41,497 41,497 Appropriation Bill (No.3) 2013-14 - -

Total Departmental CAC Act body payments disclosed above 41,497 41,497


1.3 AGENCY MEASURES TABLE

Table 1.2 summarises measures taken since the 2013-14 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Agency 2013-14 Measures since Budget

22

Program 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000

Revenue measuresCarbon pricing mechanism — replacing f ixed price w ith an emissions trading scheme from 1 July 2014 1 2.1

Administered revenues - (150,000) - -Departmental revenues - - - -

Total - (150,000) - -Repeal of the Carbon Tax - forgone revenue from repeal of the Carbon Tax 2.1

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

Total (10,000) (50,000) (50,000) (90,000)Repeal of the Carbon Tax - abolishing other measures 2 2.1

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

Total - 7,200 3,000 4,000Total revenue measures

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

Total (10,000) (192,800) (47,000) (86,000)Expense measuresCaring for our Country - redirection of funding 3 1.1

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

Total (1,100) (604) (1,117) (1,092)Caring for our Country - redirection of funding 4 1.1

Administered (6,667) - - -Departmental - - - -

Total (6,667) - - -Green Army - establishment 1.1

Administered - 48,345 96,351 144,621Departmental 968 2,335 2,163 2,674

Total 968 50,680 98,514 147,295Tasmanian Economic Diversif ication Projects 5 1.1, 5.1

Administered - - - -Departmental - - - -

Total - - - -



23

Program 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000

International Whale and Marine Mammal Conservation Initiative - extension 6 1.2

Administered - - - -Departmental - - - -

Total - - - -Southern Ocean Flights - monitoring of w haling and protest f leets 1.1, 1.2

Administered (348) - - -Departmental 348 - - -

Total - - - -Biodiversity Fund - reduction in funding and termination 7 1.3

Administered (32,885) (57,600) (52,120) (59,650)Departmental - (2,339) (3,118) (4,977)

Total (32,885) (59,939) (55,238) (64,627)Biodiversity Fund - reduced funding 8 1.3

Administered (183) (297) (717) (252)Departmental - - - -

Total (183) (297) (717) (252)Repeal of the Carbon Tax - abolishing land initiatives and unnecessary bureaucracies 2

1.3, 7.1, 7.2

Administered (17,141) (23,761) (16,939) (16,461)Departmental 568 (982) (2,988) (2,364)

Total (16,573) (24,743) (19,927) (18,825)Repeal of the Carbon Tax - abolishing other measures 2

2.1, 7.1,7.2

Administered - (1,892) (5,859) (5,487)Departmental (580) (4,193) (5,238) (6,259)

Total (580) (6,085) (11,097) (11,746)Australia-Antarctica shipping capability - development of f inal detailed proposal 9 3.1

Administered - - - -Departmental - (100) (100) (100)

Total - (100) (100) (100)Water - rephase four years of spending over six years 10 4.1

Administered (12,439) (18,225) (29,381) (29,133)Departmental - (492) (490) -

Total (12,439) (18,717) (29,871) (29,133)Murray-Darling Basin Plan - South Australian River Murray Sustainability Program - establishment 11 4.1

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

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



24

Program 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000

Former Department of Climate Change and Energy Eff iciency - reduction in funding 12 7.1, 7.2

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

Total (3,661) (6,915) (6,915) (6,915)Public Service eff iciencies 13 All

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

Total (284) (1,065) (2,101) (2,833)Reforms to APS management and eff icient procurement of agency softw are 14 All

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

Total (735) (1,423) (2,459) (2,629)Eff iciency Dividend – temporary increase in the rate 14 All

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

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

Administered (70,763) (54,034) (109,782) 12,546Departmental (3,376) (19,247) (30,085) (36,304)

Total (74,139) (73,281) (139,867) (23,758)Capital measuresInternational Whale and Marine Mammal Conservation Initiative - extension 6 1.2

Administered capital - - - -Departmental capital - - - -

Total - - - -Water - rephase four years of spending over six years 10 4.1

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

Total (31,810) (109,454) (188,195) (220,381)Eff iciency Dividend - temporary increase in the rate 14 All

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

TotalTotal capital measures

Administered (31,810) (109,454) (188,195) (220,381)Departmental - (243) (549) (854)

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

Prepared on a Government Financial Statistics (fiscal) basis



25

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

11 This measure also includes savings of $60 million in 2018-19. The expenditure component of this measure sits w ith the Departments of the Treasury and Agriculture.

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

10 This measure w as announced in the 2013-14 MYEFO. Funding of $551.0 million in the Restoring the Balance in the Murray-Darling Basin programme and $99.0 million in the Sustainable Rural Water Use and Infrastructure programme w as re-phased to beyond the forw ard estimates ($459.5 million in 2017-18 and $190.5 million in 2018-19). This includes $10.0 million in funding held by the Department of the Treasury.

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

5 Provision for this funding w as already included in the forw ard estimates. The measure includes some funding provided to the Department of the Treasury as payment to states and territories. It w as announced in the Economic Statement 2013.6 Funding for this measure w as included in the 2013-14 Budget as a 'decision taken but not yet announced'.

12 This measure includes further savings reported in the estimates of the Clean Energy Regulator and the Departments of Foreign Affairs and Trade and Industry. Total cross portfolio savings of $45 million are provided over the forw ard estimates. This measure w as reported in the 2013-14 MYEFO.

9 This measure includes funding of $3.3 million in 2013-14. This component of the measure w as included as a 'decision taken but not yet announced' in the 2013-14 Budget. It w as announced in the Pre-Election Economic and Fiscal Outlook 2013. $0.4 million w ill be appropriated to the Department of Finance over four years for undertaking a Gatew ay Review of the measure.

4 This measure w as announced in the 2013-14 MYEFO. It provides savings from the Fisheries Adjustment Assistance Package component to partially offset the Royal Commission into the Home Insulation Program.

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

8 This measure w as announced in the 2013-14 MYEFO and is in addition to savings taken from this programme as part of the repeal of the Carbon Tax.

2 This is a cross portfolio measure announced in the 2013-14 Mid Year Economic and Fiscal Outlook (MYEFO).

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


1.4 ADDITIONAL ESTIMATES AND VARIATIONSThe following tables detail the changes to the resourcing for the Department at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2013-14 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations through other factors, such parameter adjustments.

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

26

Programme 2013-14 2014-15 2015-16 2016-17impacted $'000 $'000 $'000 $'000

All Outcome measuresDecrease in estimates (departmental)

Public Service eff iciencies All (284) (1,065) (2,101) (2,833)Reforms to APS management and eff icient procurement of agency softw are

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

Eff iciency Dividend - temporary increase in rate

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

Decrease in estimates (departmental-capital)Eff iciency Dividend - temporary increase in rate

All - (243) (549) (854)

Net impact on estimates for all outcome (departmental) (1,019) (6,804) (13,948) (19,217)

Outcome 1Increase in estimates (administered)

Green Army - establishment 1.1 - 48,345 96,351 144,621International Whale and Marine Mammal Conservation Initiative - extension

1.2 - - - -

Decrease in estimates (administered)Caring for our Country - redirection of funding

1.1 (1,100) (604) (1,117) (1,092)

Caring for our Country - redirection of funding

1.1 (6,667) - - -

Southern Ocean Flights - monitoring of w haling and protest f leets

1.1 (348) - - -

Biodiversity Fund - reduction in funding and termination

1.3 (32,885) (57,600) (52,120) (59,650)

Biodiversity Fund - Reduced funding

1.3 (183) (297) (717) (252)

Repeal of the Carbon Tax - abolishing land initiatives and unnecessary bureaucracies

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

Net impact on estimates for Outcome 1 (administered) (58,324) (32,265) 27,666 69,466



27


Increase in estimates (departmental)Green Army - establishment 1.1 968 2,335 2,163 2,674Tasmanian Economic Diversif ication Projects

1.1 - - - -

International Whale and Marine Mammal Conservation Initiative - extension

1.2 - - - -

Southern Ocean Flights - monitoring of w haling and protest f leets

1.2 348 - - -

Decrease in estimates (departmental)Biodiversity Fund - reduction in funding and termination

1.3 - (2,339) (3,118) (4,977)

Repeal of the Carbon Tax - abolishing land initiatives and unnecessary bureaucracies

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

Increase in estimates (departmental-capital)International Whale and Marine Mammal Conservation Initiative - extension

1.2 - - - -

Net impact on estimates for Outcome 1 (departmental) 516 (1,460) (3,333) (3,973)


Repeal of the Carbon Tax - abolishing other measures - Revenue

2.1 - 7,200 3,000 4,000

Decrease in estimates (administered)Repeal of the Carbon Tax - abolishing other measures

2.1 - (991) (5,183) (4,983)

Carbon pricing mechanism - replacing f ixed price w ith an emissions trading scheme from 1 July 2014 - Revenue

2.1 - (150,000) - -

Repeal of the Carbon Tax - forgone revenue from repeal of the Carbon Tax - Revenue

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

Net impact on estimates for Outcome 2 (administered) (10,000) (193,791) (52,183) (90,983)

Decrease in estimates (departmental)Repeal of the Carbon Tax - abolishing other measures 1

2.1 - (4,193) (5,238) (6,259)

Net impact on estimates for Outcome 2 (departmental) - (4,193) (5,238) (6,259)



28


Outcome 3Increase in estimates (departmental)

Australia-Antarctica shipping capability - development of f inal detailed proposal

3.1 - - - -

Decrease in estimates (departmental)Australia-Antarctica shipping capability - development of f inal detailed proposal

3.1 - (100) (100) (100)

Net impact on estimates for Outcome 3 (departmental) - (100) (100) (100)

Outcome 4Decrease in estimates (administered)

Water - rephase four years of spending over six years

4.1 (12,439) (18,225) (29,381) (29,133)

Murray-Darling Basin Plan - South Australian River Murray Sustainability Programme - establishment

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

Decrease in estimates (administered-capital)Water - rephase four years of spending over six years

4.1 (31,810) (109,454) (188,195) (220,381)

Net impact on estimates for Outcome 4 (administered) (44,249) (127,679) (317,576) (269,514)Water - rephase four years of spending over six years

4.1 - (492) (490) -

Net impact on estimates for Outcome 4 (departmental) - (492) (490) -


Tasmanian Economic Diversif ication Projects

5.1 - - - -

Net impact on estimates for Outcome 5 (administered) - - - -



29


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

30


Outcome 7Decrease in estimates (administered) - - - -

Repeal of the Carbon Tax - abolishing land initiatives and unnecessary bureacracies 1

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

Repeal of the Carbon Tax - abolishing other measures 1 7.1 & 7.2 - (901) (676) (504)

Net impact on estimates for Outcome 7 (administered) - (2,553) (2,884) (2,804)

Increase in estimates (departmental)Repeal of the Carbon Tax - abolishing land initiatives and unnecessary bureaucracies 1

7.1 & 7.2 1,368 474 - -

Decrease in estimates (departmental)Repeal of the Carbon Tax - abolishing land initiatives and unnecessary bureaucracies 1

7.1 & 7.2 - - (610) (694)

Repeal of the Carbon Tax - abolishing other measures 1

7.1 & 7.2 (580) - - -

Former Department of Climate Change and Energy Eff iciency - reduction in funding

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

Net impact on estimates for Outcome 7 (departmental) (2,873) (6,441) (7,525) (7,609)

1 This funding includes components w hich previously w ere the responsibility of the former Portfolio of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. The savings w ere taken before a section 32 determination under the Financial Management and Accountability Act 1997 w as finalised to transfer this funding to the Department of the Environment.


31



Other variations 1.1 - - 1,096 3,324 Decrease in estimates (administered) Parameter adjustment 1.1 - (151) (257) (311) Net impact on estimates

for Outcome 1 (administered) - (151) 839 3,013Increase in estimates (departmental)

Other variations All - 3,397 3,517 2,934 Decrease in estimates (departmental)

Parameter adjustment All - (284) (438) (523) Other variations All (4,331) - - -

Increase in estimates (departmental-capital)Other variations All - 109 - -

Decrease in estimates (departmental-capital)Parameter adjustment All - (7) (13) (16) Other variations All (611) - (298) (300)

Net impact on estimates for Outcome 1 (departmental) (4,942) 3,215 2,768 2,095


Other variations All 327 - - - Decrease in estimates (departmental)

Parameter adjustment All - (115) (155) (190) Other variations All - (2,334) (2,334) (2,526)

Decrease in estimates (departmental-capital)Parameter adjustment All - (6) (7) (9) Other variations All (70) (1,044) (392) (312)

Net impact on estimates for Outcome 2 (departmental) 257 (3,499) (2,888) (3,037)

Outcome 3Decrease in estimates (departmental)

Parameter adjustment 3.1 - (254) (422) (497) Other variations 3.1 (124) (307) (317) (229)

Increase in estimates (departmental-capital)Other variations 3.1 1,330 1,607 1,749 1,766

Decrease in estimates (departmental-capital)Parameter adjustment 3.1 - (40) (65) (79)

Net impact on estimates for Outcome 3 (departmental) 1,206 1,006 945 961



32



Other variations 4.1 4,332 4,765 2,418 4,624 Decrease in estimates (departmental)

Parameter adjustment 4.1 - (212) (357) (313) Decrease in estimates (departmental-capital)

Parameter adjustment 4.1 - (6) (12) (14) Other variations 4.1 (439) (282) (279) (450)

Net impact on estimates for Outcome 4 (departmental) 3,893 4,265 1,770 3,847


Other variations All 773 - 775 -Decrease in estimates (departmental)

Parameter adjustment All - (233) (390) (472) Other variations All - (1,353) - (510)

Decrease in estimates (departmental-capital)Parameter adjustment All - (10) (18) (22) Other variations All (231) (335) (605) (527)

Net impact on estimates for Outcome 5 (departmental) 542 (1,931) (238) (1,531)


Other variations 6.1 1,738 - - - Decrease in estimates (departmental)

Parameter adjustment 6.1 - (23) (36) (40) Other variations 6.1 - (2,480) (2,440) (2,711)

Increase in estimates (departmental-capital)Other variations 6.1 21 - - -

Decrease in estimates (departmental-capital)Parameter adjustment 6.1 - (1) (2) (2) Other variations 6.1 (55) (175) (177)

Net impact on estimates for Outcome 6 (departmental) 1,759 (2,559) (2,653) (2,930)



33


1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILLThe following tables detail the Additional Estimates sought for the Department through Appropriation Bills Nos. 3 and 4.

34



Section 32 transfer from Industry for Climate Change functions

All 14,775 10,209 9,501 8,228

Increase in estimates (administered non-operating)Section 32 transfer from Industry for Climate Change functions 1 All 88 - - -

Net impact on estimates for Outcome 7 (administered) 14,863 10,209 9,501 8,228

Increase in estimates (departmental)Section 32 transfer from Industry for Climate Change functions

All 29,032 37,891 36,328 34,917

Decrease in estimates (departmental)Parameter adjustment All - (2) (5) (5)

Increase in estimates (departmental-capital)Section 32 transfer from Industry for Climate Change functions

All 1,644 1,612 1,634 1,660

Increase in estimates (departmental non-operating)Section 32 transfer from Industry for Climate Change functions 1 All 38,141 - - -

Net impact on estimates for Outcome 7 (departmental) 68,817 39,501 37,957 36,572

1 Funding transferred from the Department of Industry as a result of the AAO changesannounced on 18 September 2013.


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

35

2012-13 2013-14 2013-14 Additional ReducedAvailable Budget Revised Estimates Estimates

($'000) ($'000) ($'000) ($'000) ($'000)ADMINISTERED ITEMSOutcome 1The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonw ealth protected areas

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

Outcome 2Improved sustainability of Australia’s population, communities and environment through coordination and development of sustainable population and communities policies and the reduction and regulation of w aste, pollutants and hazardous substances

11,005 25,178 25,178 - -

Outcome 4Adaptation to climate change, w ise w ater use, secure w ater supplies and improved health of rivers, w aterw ays and freshw ater ecosystems by supporting research, and reforming the management and use of w ater resources

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

Outcome 5Increased protection, aw areness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identif ication, conservation and celebration of natural, indigenous and historic places of national and World Heritage signif icance

11,666 9,743 10,093 350 -



36


($'000) ($'000) ($'000) ($'000) ($'000)Outcome 6Protection and restoration of environmental assets through the management and use of Commonw ealth environmental w ater

24,700 27,433 27,433 - -

Outcome 7Reduction of Australia's greenhouse gas emissions adaption to the impacts of climate change, and contribution tow ards the negotiation of an effective global solution to climate change, through the development and implementation of a natural response to climate change

- - - - -

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



37


($'000) ($'000) ($'000) ($'000) ($'000)DEPARTMENTAL PROGRAMSOutcome 1The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonw ealth protected areas

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

Outcome 2 Improved sustainability of Australia’s population, communities and environment through coordination and development of sustainable population and communities policies and the reduction and regulation of w aste, pollutants and hazardous substances

38,839 44,010 44,168 158 -

Outcome 3Advancement of Australia’s strategic, scientif ic, environmental and economic interests in the Antarctic by protecting, administering and researching the region

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


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

Outcome 5Increased protection, aw areness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identif ication, conservation and celebration of natural, indigenous and historic places of national and World Heritage signif icance

88,777 90,884 91,216 332 -



38



39



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


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

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

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


40


($'000) ($'000) ($'000) ($'000) ($'000)PAYMENTS TO STATES, ACT, NT

AND LOCAL GOVERNMENTOutcome 1The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonw ealth protected areas

- - - - -


- - - - -


- - - - -


17,410 5,204 5,204 - -

Outcome 5Increased protection, aw areness and appreciation of Australia’s environment and heritage through regulating matters of national environmental signif icance and the identif ication, conservation and celebration of natural, indigenous and historic places of national and World Heritage signif icance

360 800 800 - -



41



- - - - -


- - - - -

OTHER ADMINISTERED ITEMSOutcome 1The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonw ealth protected areas

- - - - -


- - - - -


- - - - -



42


($'000) ($'000) ($'000) ($'000) ($'000)Outcome 4Adaptation to climate change, w ise w ater use, secure w ater supplies and improved health of rivers, w aterw ays and freshw ater ecosystems by supporting research, and reforming the management and use of w ater resources

- - - - -

Outcome 5Increased protection, aw areness and appreciation of Australia’s environment and heritage through regulating matters of national environmental signif icance and the identif ication, conservation and celebration of natural, indigenous and historic places of national and World Heritage signif icance

- - - - -

Outcome 6Protection and restoration of environmental assets through the management and use of Commonw ealth environmental w ater

- - - - -


- - - - -

Total 17,770 6,004 6,004 - - Non-operating

Equity injections1 1,872 2,467 40,608 38,141 - Administered assets and liabilities 1 162,180 6,261 6,349 88 -

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

Department of the Environment

Total 181,822 14,732 52,961 38,229 - 1 Recognise prior year funding transferred from the Department of Industry as a result of theAAO changes announced on 18 September 2013.


Section 2: Revisions to Agency Resources and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

43

2013-14 Portfolio Budget Statements

2013-14 Portfolio Additional Estimates Statements

Outcome 1: The conservation and protection of Australia's terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.

Outcome 1: The conservation and protection of Australia's terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.

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

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

Program 1.2: Environmental Information and Research.

Program 1.2: Environmental Information and Research.

Program 1.3: Carbon Pollution Reduction - Land Sector Initiatives.

Program 1.3: Carbon Pollution Reduction - Land Sector Initiatives.

Outcome 2: Improved sustainability of Australia's population, communities and environment through coordination and development of sustainable population and communities policies, and the reduction and regulation of waste, pollutants and hazardous substances.


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

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

Outcome 3: Advancement of Australia's strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.

Outcome 3: Advancement of Australia's strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.

Program 3.1: Antarctica: Science, Policy and Presence.

Program 3.1: Antarctica: Science, Policy and Presence.


44

Outcome 4: Adaptation to climate change, wise water use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and the use of water resources.

Outcome 4: Adaptation to climate change, wise water use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and the use of water resources.

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

Outcome 5: Increased protection, awareness and appreciation of Australia's environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of national and World Heritage significance.

Outcome 5: Increased protection, awareness and appreciation of Australia's environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of national and World Heritage significance.

Program 5.1: Conservation of Australia's Heritage and Environment.

Program 5.1: Conservation of Australia's Heritage and Environment.

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

Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth and environmental water.

Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth and environmental water.

Program 6.1: Commonwealth Environmental Water.

Program 6.1: Commonwealth Environmental Water.

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

Program 7.1: Reducing Australia's Greenhouse Gas Emissions.

Program 7.2: Adapting to Climate Change.


OUTCOME 1: THE CONSERVATION AND PROTECTION OF AUSTRALIA’S TERRESTRIAL AND MARINE BIODIVERSITY AND ECOSYSTEMS THROUGH SUPPORTING RESEARCH, DEVELOPING INFORMATION, SUPPORTING NATURAL RESOURCE MANAGEMENT, AND ESTABLISHING AND MANAGING COMMONWEALTH PROTECTED AREAS.

Outcome 1 Strategy

The Department is committed to conserving and protecting Australia’s unique biodiversity through provision of policy advice and the delivery of programmes, information and research.

The Department is progressing design and implementation of the following commitments, which will amend the Outcome 1 Strategy published in the 2013-14 Budget:

the National Landcare Programme will replace the Caring for our Country initiative in 2014-15;

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

the Government’s Commonwealth marine reserves proclaimed in November 2012 will be reviewed; and

the Green Army will be established.

The Green Army measure, announced in the 2013-14 Mid Year Economic and Fiscal Outlook, will deliver local projects that support regional, national and international conservation management objectives while also providing skills and training to participants. The Department is supporting the Government’s natural resource management priorities, in particular, a simple, local and long term approach, through implementation of the National Landcare Programme.

The Department has made a contribution of $0.3 million in 2013-14 to undertake three surveillance flights over the Southern Ocean.

45


Table 2.1.1 Budgeted Expenses for Outcome 1

46

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

2012-13 2013-14Actual Revised

expenses estimatedexpenses

$'000 $'000Programme 1.1: Sustainable Management of Natural Resources and the EnvironmentAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 252,733 345,359 Less Special Accounts (162,461) (274,894)

Special AccountsNatural Heritage Trust of Australia Account 162,461 274,894

Departmental expensesDepartmental appropriation 1 101,193 89,622 Revenues from independent sources (s31) 23,274 30,010

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

Total for Programme 1.1 381,262 467,471

Programme 1.2: Environmental Information and ResearchAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 27,948 24,238 Departmental expenses

Departmental appropriation 1 11,984 8,085 Revenues from independent sources (s31) 7,040 1,464

Expenses not requiring appropriation in the Budget year 2 483 476


Programme 1.3: Carbon Pollution Reduction – Land Sector InitiativesAdministered expenses


Departmental appropriation 1 4,392 10,420 Revenues from independent sources (s31) - 235



Outcome 1: The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.



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

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

Green Army Programme:

To support the delivery of environmental and heritage conservation outcomes at the local, regional and national level through engaging and deploying young Australians to participate in Green Army teams.

47



$'000 $'000Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 143,696 244,782 Special Accounts 162,461 274,894



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

2012-13 2013-14Average Staffing Level (number) 567 504

1 Outcome 1 also has a departmental capital budget of $2.401 million in 2013-14.2 Expenses not requiring appropriation consists of depreciation and amortisation expense, resources received free of charge and other gains. 3 Indigenous functions will be transferred from the Department of the Environment consistent with the AAO change announced on 18 September 2013. This revised arrangement will be reflected in the next PB Statement.


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

48

2012-13 2013-14 2014-15 2015-16 2016-17Actual Revised Forw ard Forw ard Forw ard

budget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual administered expenses:Caring for our Country: 1

Natural Heritage Trust 162,461 274,894 279,952 330,945 333,000 Less Special Accounts (162,461) (274,894) (279,952) (330,945) (333,000) Environmental Stew ardship

Programme 11,046 14,404 14,730 16,033 17,459 Working on Country 57,337 46,783 51,227 52,035 52,610

Tasmanian Forests Agreement - Implementation Package 20,280 1,000 7,720 1,000 -

Caring for our Country - National Wildlife Corridor Plan 1,609 3,807 - - -

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

Grants to Voluntary Environment, Sustainability and Heritage

Organisations - 1,346 1,345 1,344 1,342 Green Army - - 48,345 97,447 147,945

Special Account Expenses: Natural Heritage Trust of

Australia Account 162,461 274,894 279,952 330,945 333,000 Annual departmental expenses:

Departmental Programme Support 2 122,967 119,632 113,562 111,245 110,299 Grants to Voluntary Environment,

Sustainability and Heritage Organisations 1,500 - - - -

Expenses not requiring appropriationin the Budget year:

Depreciation and amortisation 3,099 2,377 2,722 1,557 1,438 Other 3 963 103 118 118 123

Total programme expenses 381,262 467,471 522,846 614,849 667,341 1 Part of Caring for our Country funding has been transferred to the Department of the Treasuryin 2012-13 to enable payments required under the Federal Financial Relations Act 2009.2 Includes other revenue in addition to Appropriation and Sale of Goods and Services.3 Includes resources received free of charge, other gains and impairment of financial assets.


Program 1.1 Deliverables

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


Green Army Programme Guidelines, describing the design and delivery of the programme are produced.

A tender process to assess and select suitable service provider/s is undertaken. A project selection process will be conducted to assess and select suitable Green

Army projects for Rounds 1 and 2.

Program 1.1 Key Performance Indicators

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


Completion of initial programme design, with the programme ready for delivery from 1 July 2014.

Engagement of one or more service providers to recruit and deploy Green Army teams from 1 July 2014.

Selection of up to 250 projects, via competitive assessment rounds (Rounds 1 and 2), for Green Army team deployment from 1 July 2014.

49


Program 1.2 Objective: Environmental Information and Research

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

Program 1.2 Expenses: Environmental Information and Research


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


There have been no changes to the Program 1.2 Key Performance Indicators since the 2013-14 Budget.

50



Annual administered expenses:National Environment Research Programme 19,487 20,520 20,520 24,020 24,020 International Whale Science Initiative 1,709 1,688 1,000 - - Australian Biological Resources Study 1,970 2,030 2,030 2,030 2,030 Community Infrastructure Grants

- Cumberland Plains 4,782 - - - - Annual departmental expenses:

Departmental Programme Support 1 19,024 9,549 6,789 5,653 5,552 Expenses not requiring appropriation

in the Budget year:Depreciation and amortisation 448 461 339 133 119 Other 2 35 15 15 10 10

Total programme expenses 47,455 34,263 30,693 31,846 31,731 1 Includes other revenue in addition to Appropriation and Sale of Goods and Services.2 Includes resources received free of charge and other gains.


Program 1.3 Objective: Carbon Pollution Reduction – Land Sector Initiatives

There have been no changes to the Program 1.3 Objectives since the 2013-14 Budget, noting that the key programmes delivered under Programme 1.3 will be abolished as part of the repeal of the carbon tax. Existing programme commitments will be honoured, but no new commitments will be entered into.

the Biodiversity Fund will terminate on 30 June 2018; the Indigenous Carbon Farming Fund will terminate on 30 June 2017; the Land Sector Carbon and Biodiversity Board has been abolished; and Regional Natural Resource Management (NRM) Planning for Climate Change

will terminate on 30 June 2016.

Program 1.3 Expenses: Carbon Pollution Reduction – Land Sector Initiatives


There have been no changes to the Program 1.3 Deliverables since the 2013-14 Budget, noting that the key programmes delivered under Programme 1.3 will be abolished as part of the repeal of the carbon tax.


There have been no changes to the Program 1.3 Key Performance Indicators since the 2013-14 Budget, noting that the key programmes delivered under Programme 1.3 will be abolished as part of the repeal of the carbon tax.

51



Annual administered expenses:Biodiversity Fund 20,452 129,405 85,867 70,165 42,423 Regional NRM Planning for Climate

Change 3,744 18,000 1,146 1,245 - Indigenous Carbon Farming Fund 1,280 2,674 735 - -

Annual departmental expenses:Departmental Programme Support 1 4,392 10,655 7,534 7,986 6,067


Depreciation and amortisation 219 440 334 255 170 Other 2 12 20 15 20 15



OUTCOME 2: IMPROVED SUSTAINABILITY OF AUSTRALIA’S POPULATION, COMMUNITIES AND ENVIRONMENT THROUGH COORDINATION AND DEVELOPMENT OF SUSTAINABLE POPULATION AND COMMUNITIES POLICIES, AND THE REDUCTION AND REGULATION OF WASTE, POLLUTANTS AND HAZARDOUS SUBSTANCES.

Outcome 2 Strategy

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

On 13 November 2013, the Government introduced bills into the Parliament to repeal the equivalent carbon price on synthetic greenhouse gases. The application of an equivalent carbon price to synthetic greenhouse gases commenced on 1 July 2012 and is planned to be repealed from 1 July 2014.

On 8 November 2013, the Government announced its decision to abolish the National Sustainability Council, with the functions of the Council to be absorbed by the Department.

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53




$'000 $'000Programme 2.1: Management of Hazardous Wastes, Substances and PollutantsAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 2,263 3,100 Special Accounts

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




Programme 2.2: Sustainable CommunitiesAdministered expenses


Departmental appropriation 1 3,918 5,617 Revenues from independent sources (s31) 32 117



Outcome 2 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 11,005 25,178 Special Accounts 13,612 11,933



Total expenses for Outcome 2 81,395 98,041

2012-13 2013-14Average Staffing Level (number) 251 256 1 Outcome 2 also has a departmental capital budget of $1.336 million in 2013-14.2 Expenses not requiring appropriation consists of depreciation and amortisation expense,resources received free of charge and other gains.



Program 2.1 Objective


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


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

Applying an equivalent carbon price to the import and manufacture of synthetic greenhouse gases, and arrangements for destruction of waste synthetic greenhouse gases and ozone depleting substances until 30 June 2014.

Implementing transitional arrangements for the export refund scheme and for imports made between 1 April 2014 and 30 June 2014 where the synthetic greenhouse gases were entered into a warehouse licensed under the Customs Act 1901.

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Annual administered expenses:Destruction of SGG and Ozone Depleting

Substances - 1,192 - - - Other 15,875 13,841 13,574 13,333 13,333

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

Ozone & Synthetic Greenhouse GasAccount 13,612 11,933 12,346 12,804 12,804


Expenses not requiring appropriation inthe Budget year:





The following Key Performance Indicator updates those outlined in the 2013-14 Portfolio Budget Statements:

The implementation of the equivalent carbon price on imports and manufacture of synthetic greenhouse gases and arrangements for destruction of waste synthetic green house gases is planned to be repealed from 1 July 2014 as part of the Government’s repeal of the carbon tax.

55




Program 2.2 Expenses: Sustainable Communities


With the abolition of the National Sustainability Council the Government is giving consideration to how the Council’s functions will be absorbed by the Department.



56



Annual administered expenses:Sustainable Australia - Suburban Jobs 1 8,742 22,078 8,736 - -



Depreciation and amortisation 137 220 223 64 57 Other 3 8 10 10 5 5

Total programme expenses 12,837 28,042 14,219 3,225 3,143 1 For the Sustainable Australia - Sustainable Planning Initiative refer to Programme 5.2 Environmental Regulation in Table 2.1.5.2 Includes other revenue in addition to Appropriation and Sale of Goods and Services.3 Includes resources received free of charge and other gains.


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

Outcome 3 Strategy

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

The Department is supporting preparation of a 20 Year Australian Antarctic Strategic Plan. This involves a comprehensive review of Australia’s Antarctic engagement, including: Australia’s Antarctic strategic interests; capacity to undertake and support priority science; presence in the Antarctic; and international engagement.




57




$'000 $'000Programme 3.1: Antarctica: Science, Policy and PresenceDepartmental expenses




Outcome 3 Totals by appropriation typeDepartmental expenses





1 Outcome 3 also has a departmental capital budget of $15.660 million in 2013-14.2 Expenses not requiring appropriation consists of depreciation and amortisation expense,approved operating loss, resources received free of charge and other gains.

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


Program 3.1 Expenses: Antarctica: Science, Policy and Presence


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

Support delivery of a 20 Year Australian Antarctic Strategic Plan.



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Depreciation and amortisation 32,452 33,410 33,856 32,708 32,629 Approved departmental operating loss - 15,880 15,880 15,880 - Finance Costs 12,640 - - - - Makegood provision increases 1,813 - - - - Other 2 3,312 - - - -

Total programme expenses 185,039 186,034 140,506 138,437 120,253 1 Includes expenses associated with other revenue in addition to Appropriation and Sale of Goods and Services. This revenue is recognised as contracts for services are confirmedover time, thereby explaining the profile in 2013-14 and the forward years (no forward years contracts have been confirmed at this time).2 Includes expenses relating to Aurora Australis life extension works funded from existing resources.


OUTCOME 4: ADAPTATION TO CLIMATE CHANGE, WISE WATER USE, SECURE WATER SUPPLIES AND IMPROVED HEALTH OF RIVERS, WATERWAYS AND FRESHWATER ECOSYSTEMS BY SUPPORTING RESEARCH, AND REFORMING THE MANAGEMENT AND USE OF WATER RESOURCES.

Outcome 4 Strategy


A measure announced in the 2013-14 Mid Year Economic Fiscal Outlook re-phases $650.0 million of spending on water buybacks and infrastructure from four years to six years. The Restoring the Balance in the Murray-Darling Basin programme and the Sustainable Rural Water Use and Infrastructure programme have been amalgamated to provide greater flexibility in managing the Government’s water reform priorities, reflecting the Government’s commitment to restoring the Murray-Darling Basin to health while ensuring the viability of the Basin’s food and fibre producing communities.

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60




$'000 $'000Programme 4.1: Water ReformAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 363,586 233,682 Other services (Appropriation Act No. 2 and Bill No. 4) 17,410 5,204 Special Accounts

Water Eff iciency Labelling and Standards Account 3,427 1,913 Services for Other Entities and Trust Monies Special Account - 510





Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 363,586 233,682 Other services (Appropriation Act No. 2 and Bill No. 4) 17,410 5,204 Special Accounts 3,427 2,423





1 Outcome 4 also has a departmental capital budget of $1.801 million in 2013-14.2 Expenses not requiring appropriation consists of depreciation and amortisation expense,resources received free of charge, other gains and impairment on water entitlements, partially offset by the transfer of water entitlements from the Sustainable Rural Water Use and Infrastructure Programme.

Outcome 4: Adaptation to climate change, w ise water use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of w ater resources.



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

Program 4.1 Expenses: Water Reform

61



Annual administered expenses:Sustainable Rural Water Use and

Infrastructure 1 259,253 191,061 279,871 563,926 348,575 Restoring the Balance in the Basin

(non capital expenditure) 147 - - - - Water Smart Australia 7,731 - - - - National Urban Water and Desalination

Plan 63,294 21,295 26,559 13,860 - National Water Security Plan for Cities

and Tow ns 13,666 - - - - Water Resources Assessment and

Research Grant 175 175 175 175 175 Independent Expert Scientif ic Committee

on Coal Seam Gas and LargeCoal Mining - 885 885 885 1,035

Commonw ealth Contribution underthe Murray-Darling Basin Agreement 2 19,320 20,266 21,077 22,300 23,100

National Urban Water and DesalinationPlan (SPP) 950 950 5,500 2,100 -

National Water Security Plan for Citiesand Tow ns (SPP) 13,092 4,254 - - -

Sustainable Rural Water Use and Infrastructure (SPP) 3,368 - - - -

Special Account Expenses:Water Efficiency Labelling and

Standards Account 3,427 1,913 1,948 1,963 1,981 Water for the Environment

Special Account - - 15,000 40,000 110,000 Services for Other Entities and

Trust Moneys Special Account - 510 510 510 510


Program 4.1 Expenses: Water Reform





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Annual departmental expenses:Departmental Programme Support 3 53,782 53,393 51,147 48,614 45,414 Science Based Framew ork for

Coal Seam Gas and Coal MiningImpacts on Water 24,519 28,252 28,332 28,329 13,875


Depreciation and amortisation 2,705 2,312 2,116 1,213 961 Approved departmental operating loss - - - - - Other 4 136 103 93 93 83 Asset impairment expense 5 224,216 - - - -

Total programme expenses 689,781 325,369 433,213 723,968 545,709 1 The funding for Restoring the Balance of the Basin has been absorbed under the Sustainable Rural Water Use and Infrastructure Programme from November 2013.2 The level of funding provided to the Murray-Darling Basin Authority under the MDB Agreementhas been agreed for the years 2012-13 to 2014-15. The contribution for 2015-16 and 2016-17 above is an estimate.3 Includes other revenue in addition to Appropriation and Sale of Goods and Services.4 Includes resources received free of charge and other gains.5 Includes adjustments for impairment on water entitlements, partially offset by the transfer of water entitlements from grant recipients of the Sustainable Rural Water Use and Infrastructure Programme.


Outcome 5: Increased protection, awareness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of national and World Heritage significance.

Outcome 5 Strategy


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

Regulatory reform to reduce regulation. This includes reducing duplication of assessments and approvals by creating a one stop shop for environmental approvals under the EPBC Act by using state and territory government systems;

Streamlining approval processes for offshore petroleum activities with the National Offshore Petroleum Safety and Environmental Management Authority serving as the sole Commonwealth assessor of offshore development.

Priorities include working with the states and territories to streamline assessment processes between jurisdictions, progressively publishing more guidance to help proponents understand and meet the requirements of the EPBC Act, and to maintain the focus on the increased use of strategic approaches under the EPBC Act.

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64




$'000 $'000Programme 5.1: Conservation of Australia's Heritage andEnvironmentAdministered expenses





Programme 5.2: Environmental RegulationAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - 751 Other services (Appropriation Act No. 2 and Bill No. 4) 360 800





Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 11,668 10,093 Other services (Appropriation Act No. 2 and Bill No. 4) 360 800



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

2012-13 2013-14Average Staffing Level (number) 583 556 1 Outcome 5 has a departmental capital budget of $3.364 million in 2013-14.2 Expenses not requiring appropriation consists of depreciation and amortisation expense,resources received free of charge and other gains. 3 Indigenous functions will be transferred from the Department of the Environment consistent with the AAO change announced on 18 September 2013. This revised arrangement will be reflected in the next PB Statement.

Outcome 5: Increased protection, awareness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, indigenous and historic places of national and World Heritage significance.




Program 5.1 Expenses: Conservation of Australia’s Heritage and Environment





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Annual administered expenses:Heritage Grants 1 7,150 4,420 4,420 4,420 4,420 National Trusts Partnership Programme 912 927 927 927 927 Indigenous Heritage Programme 3,606 3,645 3,645 3,645 3,645 Replica of Maw son's Hut - 350 - - -



Depreciation and amortisation 1,707 1,323 1,383 908 835 Other 3 222 49 49 49 49

Total programme expenses 56,020 43,989 37,343 33,937 31,352 1 This funding supports the Protection and Conservation of Australia's Heritage programme(the 'Protecting National Historic Sites programme')2 Includes other revenue in addition to Appropriation and Sale of Goods and Services.3 Includes resources received free of charge, other gains and impairment of financial assets.



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

Implement the one stop shop policy for environmental approvals in a manner that delivers greater regulatory efficiency, while maintaining high environmental standards as required under the EPBC Act.

Program 5.2 Expenses: Environmental Regulation



66



Annual administered expenses:Remediation of land affected by the Tiw i

Islands Plantation Project - 612 194 194 - Environment Protection and Biodiversity

Conservation Act - Water ResourcesAmendment - 139 259 259 259

Sustainable Australia - SustainableRegional Development (SPP) 1 360 800 400 - -




Total programme expenses 58,703 70,252 65,221 66,425 66,477 1 For further Sustainable Australia initiatives refer to Program 2.2 in Table 2.1.2.2 Includes other revenue in addition to Appropriation and Sale of Goods and Services.3 Includes resources received free of charge and other gains.



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

All assessment bilateral agreements with state and territory governments reviewed and updated.

Signed Memorandum of Understanding with each jurisdiction that commits to streamlining environmental assessments and negotiate an approval bilateral agreement and to prioritise strategic assessments and other complementary streamlining measures.

Approval bilateral agreements, as comprehensive in scope as possible, negotiated with all willing jurisdictions whilst maintaining environmental standards established in the EPBC Act.

Development of an assurance framework for the one stop shop that provides confidence about the implementation of the approval bilateral agreements.

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OUTCOME 6: PROTECTION AND RESTORATION OF ENVIRONMENTAL ASSETS THROUGH THE MANAGEMENT AND USE OF COMMONWEALTH ENVIRONMENTAL WATER.

Outcome 6 Strategy

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


68




$'000 $'000Programme 6.1: Commonwealth Environmental WaterAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 15,408 29,391 Less Special Account (15,408) (29,391)

Special AccountsEnvironmental Water Holdings Special Account 15,408 29,391

Departmental expensesDepartmental appropriation 1 11,802 11,318 Revenues from independent sources (s31) 322 235




Special Accounts 15,408 29,391 Departmental expenses

Departmental appropriation 1 11,802 11,318 Revenues from independent sources (s31) 322 235




1 Outcome 6 has a departmental capital budget of $0.344 million in 2013-14.2 Expenses not requiring appropriation consists of depreciation and amortisation expense,resources received free of charge and other gains.

Outcome 6: Protection and restoration of environmental assets through the management and use of Commonw ealth environmental water.




Program 6.1 Expenses: Commonwealth Environmental Water





69



Annual administered expenses:Commonw ealth Environmental Water

Office 15,408 29,391 26,226 28,021 29,160 Less Special Accounts:

Environmental Water HoldingsSpecial Account (15,408) (29,391) (26,226) (28,021) (29,160)

Special Account Expenses:Environmental Water Holdings

Special Account 15,408 29,391 26,226 28,021 29,160 Annual departmental expenses:

Departmental Programme Support 1 12,124 11,553 5,759 5,031 4,075 Expenses not requiring appropriation

in the Budget year:Depreciation and amortisation 525 440 223 128 113 Other 2 25 20 10 10 10



Outcome 7: Reduction of Australia’s greenhouse gas emissions, adaptation to the impacts of climate change, and contribution towards the negotiation of an effective global solution to climate change, through the development and implementation of a national response to climate change.

Outcome 7 Strategy

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

Achieving Australia’s greenhouse gas emissions reduction targets through mechanisms that drive cost effective emissions reductions, including through implementation of the Government’s Direct Action plan and support for renewable energy technologies.

Supporting Australia’s capacity to adapt to a changing climate through well-coordinated climate science, and practical guidance to assist decision makers.

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71


2012-13 2013-14

Actual Revised


$'000 $'000

Programme 7.1: Reducing Australia's Greenhouse Gas Emissions 1

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

Departmental expensesDepartmental appropriation 3 - 22,341 Revenues from independent sources (s31) - 383

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

Total for Programme 7.1 - 26,907 Programme 7.2: Adapting to Climate Change 2

Administered expensesOrdinary annual services (Appropriation Act No. 1 and Bill No. 3) - 11,677

Departmental expensesDepartmental appropriation 3 - 4,398 Revenues from independent sources (s31) - -

Expenses not requiring appropriation in the Budget year 4 - 214 Total for Programme 7.2 - 16,289 Administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - 14,775 Departmental expenses

Departmental appropriation 3 - 26,739 Revenues from independent sources (s31) - 383

Expenses not requiring appropriation in the Budget year 4 - 1,299 Total expenses for Outcome 7 - 43,196

2012-13 2013-14Average Staffing Level (number) - 150 1 Reducing Australia's Greenhouse Gas Emissions programme was transferred from the Department of Industry as the result of Administrative Arrangement Order (AAO) changes dated 18 September 2013(please note that the 2012-13 Actual expenses are reported by the Department of Industry).2 Adapting to Climate Change programme was transferred from the Department of Industry as the result of Administrative Arrangement Order (AAO) changes dated 18 September 2013.(please note that the 2012-13 Actual expenses are reported by the Department of Industry).3 Outcome 7 has a departmental capital budget of $1.644 million in 2013- 14.4 Expenses not requiring appropriation consists of depreciation and amortisation expense, resources received free of charge and other gains.

Outcome 7: Reduction of Australia's greenhouse gas emissions, adaption to the impacts of climate change, and contribution towards the negotiation of an effective global solution to climate change, through the development and implementation of a national response to climate change.


Program 7.1 Objective: Reducing Australia’s Greenhouse Gas Emissions

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

Program 7.1 components contribute to achieving the objectives by:

providing incentives to encourage the transition towards low emissions and energy efficient technologies, processes and products through the implementation of the ERF;

encouraging investment in renewable electricity generation through the Renewable Energy Target;

providing incentives to reduce emissions in the land sector through the implementation of the Carbon Farming Initiative (CFI) and associated programmes through the Direct Action Plan; and

providing opportunities for businesses to measure and assess their carbon footprint through the Carbon Neutral Programme.

Program 7.1 Expenses: Reducing Australia’s Greenhouse Gas Emissions

72



Annual administered expenses:Extending the benefits of the Carbon

Farming initiative - 3,025 909 475 428 Carbon Farming Skills - 73 250 - -

Annual departmental expenses:Departmental Programme Support 1 - 22,724 27,674 25,862 24,678


Depreciation and amortisation - 1,085 2,157 1,806 680 Total programme expenses - 26,907 30,990 28,143 25,786 1 Includes other revenue in addition to Appropriation and Sale of Goods and Services.


Program 7.1 Deliverables Develop and consult with the community through both the Green and White

papers on the detailed design of the ERF. Finalisation of legislative amendments to implement the ERF, CFI and repeal the

carbon tax legislation. Development of methodologies under the ERF, including legislative components. Contribution to the Government’s 2014 review of the Renewable Energy Target. Development of methodologies to include the CFI under the Direct Action Plan. Provision of advice to the Department of Foreign Affairs and Trade in support of

international negotiations in relation to the land sector and international accounting rules.

Program 7.1 Key Performance Indicators Timely legislative amendments to amend the CFI and repeal the carbon tax

legislation. Timely development and delivery of new methodologies under the CFI and ERF. Effective contribution to the 2014 review of the Renewable Energy Target. The Methodology Development Program will expand opportunities under the

CFI by supporting the development of estimation methodologies for new abatement activities.

The Indigenous Carbon Farming Fund is supporting Indigenous participation in the CFI through the development of methodologies and tools that will enable crediting of abatement activities likely to have high Indigenous participation.

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Program 7.2 Objective: Adapting to Climate Change

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

Components of Program 7.2 contribute to achieving the Objective through:

improving our understanding of the global climate system and how it influences Australia’s climate through the Australian Climate Change Science Programme;

supporting research to help Natural Resource Management groups incorporate climate impacts and adaptation options into regional plans; and

provision of policy advice, and coordination with Commonwealth agencies and States and Territories in relation to development and provision of practical guidance and information on adapting to a changing climate.

Program 7.2 Expenses: Adapting to Climate Change

Program 7.2 Deliverables Coordinate national climate science research to ensure priority science activities

are delivered in an effective and streamlined manner. Support for effective collaboration between climate scientists and Natural

Resource Management groups to deliver targeted information on climate impacts and adaptation for regional planning.

Provision of policy advice on climate adaptation. Provision and coordination of well-targeted advice and practical guidance to

decision makers on climate adaptation.

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Annual administered expenses:Climate Change Science Program - 6,116 7,800 7,800 7,800 Clean Energy Future - Natural resource

management for climate change - 5,561 1,250 1,226 - Annual departmental expenses:

Departmental Programme Support 1 - 4,398 5,447 5,091 4,858 Expenses not requiring appropriation

in the Budget year:Depreciation and amortisation - 214 425 355 134

Total programme expenses - 16,289 14,922 14,472 12,792 1 Includes other revenue in addition to Appropriation and Sale of Goods and Services.


Program 7.2 Key Performance Indicators Timely, high quality, robust, evidence-based advice that meets ministerial

expectations and informs Government decisions. Well-targeted information on climate projections that meet the needs of

government, business and communities. Effective administration of the Natural Resource Management Planning for

Climate Change Fund (Stream 2) with timely delivery of information on climate change impacts and adaptation.

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3.1 EXPLANATORY TABLES

Estimates of Special Account Flows

Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Department. The corresponding table in the 2013-14 PB Statements is Table 3.1.2.

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Table 3.1.1: Estimates of Special Account Flows and Balances

77

Opening Closingbalance Receipts Payments Adjustments balance2013-14 2013-14 2013-14 2013-14 2013-14

2012-13 2012-13 2012-13 2012-13 2012-13Outcome $'000 $'000 $'000 $'000 $'000

Natural Heritage Trust of 1 386,598 309,383 (274,894) - 421,087 Australia Account (A) 1 385,868 162,814 (162,084) - 386,598

Ozone Protection and SGG 2 20,213 10,201 (11,933) - 18,481 Account (A) 2 22,984 9,631 (12,402) - 20,213

Services for Other Entities and 4 1,034 510 (510) - 1,034 Trust Moneys Special Account (A) 3 1,480 390 (836) - 1,034

Water Efficiency Labelling and 4 2,340 1,910 (1,913) - 2,337 Standards Account (A) 4 4,493 816 (2,969) - 2,340

Water for the Environment 4 - - - - - Special Account (A) 5 - - - - -

Environmental Water Holdings 6 43,825 27,433 (29,391) - 41,867 Special Account (A) 6 36,133 24,700 (17,008) - 43,825

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

Total Special Accounts2012-13 actual 450,958 198,351 (195,299) - 454,010

(A) = Administered1 Natural Heritage Trust of Australia Account - s21 FMA Act [Natural Heritage Trust of Australia Act 1997].2 Ozone Protection and SGG Account - s21 FMA Act [Ozone Protection and Synthetic Greenhouse Gas Management Act 1989].3 Services for Other Entities and Trust Moneys Special Account - s20 FMA Act Det 2010/02.4 Water Efficiency Labelling and Standards Account - s21 FMA Act [Water Efficiency Labelling and Standards Act 2004].5 Water for the Environment Special Account - s21 FMA Act [Water Act 2007 ]. The account is credited with a profiled special appropriation with annual amounts for a specified number of years, commencing in 1 J uly 2014.6 Environmental Water Holdings Special Account - s21 FMA Act [Water Act 2007 ].


3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of Budgeted Financial Statements

Changes to departmental and administered budgeted financial statements since the 2013-14 Portfolio Budget Statements include the actual financial results for 2012-13, the Administrative Arrangement Order (AAO) dated 18 September 2013, new measures, revised estimates of revenue and indexation updates.

3.2.2 Budgeted Financial Statements

Departmental Financial Statements

Comprehensive Income Statement

The changes in Departmental expense, income and revenue estimates are primarily attributable to the:

the transfer of funding to the Department as a result of the AAO dated 18 September 2013, and outlined in table 1.4;

new measures announced since budget, which encompass both expense and savings measures as outlined in tables 1.2 and 1.3; and

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

Balance Sheet

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

the 2012-13 actuals which changed the opening balances for 2013-14; and the transfer of asset and liability balances as a result of the AAO dated 18

September 2013.

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Administered

Schedule of budgeted income and expenses

Changes to income administered on behalf of the Government include:

a reduction to Synthetic Greenhouse Gases Equivalent Carbon Price programme, which is accounted for as Taxation revenue; and

gains from water entitlement assets received free of charge in accordance with the terms and conditions of the National Partnership on Water for the Future.

The reduction in taxation revenue is attributable to both a measure in table 1.3 and an estimates variation to align with revised revenue forecasts.

The revised schedule for Administered expenses reflects:

the transfer of funding to the Department as a result of the AAO dated 18 September 2013, and outlined in table 1.4; and

the new measures which encompass both expense and savings measures as outlined in tables 1.2 and 1.3.

Schedule of budgeted assets and liabilities

The overall change to the budgeted administered balance sheet primarily reflects the update of the 2012-13 actuals which resulted in changed opening balances for 2013-14. The taxation receivable has also been adjusted for the reduction to revenue raised from the Synthetic Greenhouse Gases Equivalent Carbon Price programme.

.

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

80

for the period ended 30 JuneActual Revised Forw ard Forw ard Forw ard

budget estimate estimate estimate2012-13 2013-14 2014-15 2015-16 2016-17

$'000 $'000 $'000 $'000 $'000EXPENSESEmployee benefits 267,153 277,115 260,836 248,669 238,640 Suppliers 213,719 228,793 165,733 161,166 143,813 Grants 6,480 6,442 7,046 7,326 6,513 Transfer funding 40,170 41,497 41,072 40,678 40,351 Depreciation and amortisation 46,435 47,934 49,746 43,602 41,635 Finance costs 13,196 15,880 15,880 15,880 - Write-dow n and impairment of assets 105 - - - - Other 2,378 397 396 396 396 Total expenses 589,636 618,058 540,709 517,717 471,348

LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services

102,494 90,597 52,525 51,440 49,847 Other 3,917 3,100 940 2,164 1,646 Total own-source revenue 106,411 93,697 53,465 53,604 51,493

GainsSale of assets 220 - - - - Other 4,150 694 694 694 693 Total gains 4,370 694 694 694 693 Total own-source income 110,781 94,391 54,159 54,298 52,186

Net cost of (contribution by)services 478,855 523,667 486,550 463,419 419,162

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

Surplus (Deficit) attributable tothe Australian Government (43,950) (63,814) (65,626) (59,482) (41,635)

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserves 29,393 - - - - Total other comprehensive income 29,393 - - - - Total comprehensive income (loss) (14,557) (63,814) (65,626) (59,482) (41,635)

Total comprehensive income (loss)attributable to the Australian

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



81


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

82

Note: Impact of Net Cash Appropriation Arrangements2012-13 2013-14 2014-15 2015-16 2016-17

$'000 $'000 $'000 $'000 $'000Total Comprehensive Income

(loss) less depreciation/amortisationexpenses previously funded through

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

plus depreciation/amortisation expensespreviously funded through revenue

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

Total Comprehensive Income(loss) - as per the Statement of

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

Prepared on Australian Accounting Standards basis.1 From 2010-11, the Government introduced net cash appropriation arrangements whereAppropriation Act No.1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the DepartmentalCapital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


83

Actual Revised Forw ard Forw ard Forw ardbudget estimate estimate estimate

2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and equivalents 2,992 5,651 5,651 5,651 5,651 Trade and other receivables 96,168 127,677 127,677 127,677 127,677 Accrued revenue 4,738 4,738 4,738 4,738 4,738

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

Non-financial assetsLand and buildings 254,343 243,029 231,242 220,631 210,099 Property, plant and equipment 103,489 103,282 92,173 84,060 76,266 Intangibles 26,674 37,081 38,317 39,300 42,087 Inventories 8,078 8,078 8,078 8,078 8,078 Other non - f inancial assets 1,921 1,921 1,921 1,921 1,921

Total non-financial assets 394,505 393,391 371,731 353,990 338,451 Total assets 498,403 531,457 509,797 492,056 476,517

LIABILITIESPayables

Suppliers 22,266 22,266 22,266 22,266 22,266 Grants 154 154 154 154 154 Other payables 32,891 13,143 13,143 13,143 13,143

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

Interest bearing liabilitiesLeases 2,623 2,623 2,623 2,623 2,623

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

ProvisionsEmployee provisions 65,591 90,574 90,574 90,574 90,574 Antarctic make good provisions 1 400,220 416,023 431,903 447,783 447,783 Other provisions 6,149 6,106 6,106 6,106 6,106

Total provisions 471,960 512,703 528,583 544,463 544,463 Total liabilities 529,894 550,889 566,769 582,649 582,649

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


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

84


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

EQUITYParent entity interest

Contributed equity 49,659 118,451 146,537 172,398 198,494 Reserves 302,223 302,223 302,223 302,223 302,223 Retained surplus

(accumulated deficit) (383,373) (440,106) (505,732) (565,214) (606,849) Total parent entity interest (31,491) (19,432) (56,972) (90,593) (106,132) Total equity (31,491) (19,432) (56,972) (90,593) (106,132)

Prepared on Australian Accounting Standards basis.1 The Department has a "make good" obligation for: the removal and site restoration of buildingsand infrastructure located in Antarctica and on sub-Antarctic Macquarie Island; and remediationof past waste disposal sites and areas of ground contamination in Antarctica for which Australiais responsible. These make good provisions are calculated using a net present value methodology.This requires that each year the provision increases by the value of unwinding a discount onthe future value of the provisions. This increase results in liabilities that are not covered by assetsfor the Department. Funding will not be provided to the Department until such time aspayments are required to be made, which is beyond the forward estimates.


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

85

Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000

Opening balance as at 1 July 2013Balance carried forw ard from

previous period (383,373) 302,223 49,659 (31,491) Adjustment for changes inaccounting policies 7,081 - (7,081) -

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

Comprehensive income

Surplus (def icit) for the period (63,814) - - (63,814)

Total comprehensive income (63,814) - - (63,814) of w hich:

Attributable to the Australian Government (63,814) - - (63,814) Attributable to non-controlling interest

Transactions w ith ownersDistributions to owners

Returns on capital:Returns of capital:

Restructuring - - 8,396 8,396 Contributions by owners

Contribution/ distribution of equity - - 38,075 38,075 Equity Injection - Appropriation - - 2,852 2,852 Departmental Capital Budget (DCB) - - 26,550 26,550

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

Estimated closing balanceas at 30 June 2014 (440,106) 302,223 118,451 (19,432) Less: non-controlling interests

Closing balance attributable to the Australian Government (440,106) 302,223 118,451 (19,432)

Prepared on Australian Accounting Standards basis.


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

86


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

Sale of goods and rendering of services 101,208 90,597 52,525 51,440 49,847 Appropriations 519,722 424,499 420,924 403,937 377,527 Net GST received 15,251 - - - - Other 2,173 3,745 940 2,164 1,646

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

Cash usedEmployees 264,511 277,177 260,836 248,669 238,640 Suppliers 226,576 228,744 165,039 160,472 143,120 Grants 7,253 6,442 7,046 7,326 6,513 Transfer funding 40,170 41,497 41,072 40,678 40,351 Section 31 receipts transferred to OPA 100,220 - - - - Other 2,268 397 396 396 396

Total cash used 640,998 554,257 474,389 457,541 429,020 Net cash from (used by)

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

INVESTING ACTIVITIESCash received

Proceeds from sales of property, plant and equipment 255 - - - -

Total cash received 255 - - - - Cash used

Purchase of property, plant andequipment and intangibles 25,620 29,402 28,086 25,861 26,096

Total cash used 25,620 29,402 28,086 25,861 26,096 Net cash from (used by)

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


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

87


Table 3.2.5: Departmental Capital Budget Statement

88


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

FINANCING ACTIVITIESCash received

Contributed equity 25,533 67,477 28,086 25,861 26,096 Finance leases - - - - -

Total cash received 25,533 67,477 28,086 25,861 26,096 Cash usedTotal cash used - - - - - Net cash from (used by)

financing activities 25,533 67,477 28,086 25,861 26,096 Net increase (decrease)

in cash held (2,476) 2,659 - - - Cash and cash equivalents at the

beginning of the reporting period 5,468 2,992 5,651 5,651 5,651 Cash and cash equivalents at the

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



89


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Act No. 1 (DCB) 23,479 26,550 25,341 25,216 25,151 Equity injections - Act No. 2 1,872 40,608 2,745 645 945

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

Provided for:Purchase of non-financial assets 25,351 29,083 28,086 25,861 26,096 Other Items 1 - 38,075 - - -

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

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations 2 1,872 2,852 2,745 645 945 Funded by capital appropriation - DCB 3 23,479 26,550 25,341 25,216 25,151

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

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

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

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

Prepared on Australian Accounting Standards basis.Consistent w ith information contained in the Statement of Asset Movements and the BudgetedStatement of Cash Flow s.1 Includes $38.075m for Domestic Climate Change functions transferred from Department of Industry as a result of AAO changes announced on 18 September 2013.2 Includes both current and prior year Appropriation Act No 2 and Bill No. 4.3 Does not include annual finance lease costs. Includes purchases funded by current and previousyears' Departmental Capital Budgets.

90

Agency A

dditional Estimates Statem

ent — D

epartment of the Environm

entTable 3.2.6: Statement of Asset Movements (2013-14)

Buildings Other property, Computer Totalplant and software and

equipment intangibles$'000 $'000 $'000 $'000

As at 1 July 2013Gross book value 307,021 150,533 52,584 510,138 Accumulated depreciation/amortisation

and impairment (52,678) (47,044) (25,910) (125,632) Opening net book balance 254,343 103,489 26,674 384,506 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equity 1 - - 2,852 2,852 By purchase - appropriation ordinary

annual services 2 8,020 12,648 5,882 26,550 From acquisition of entities or operations

(including restructuring) - 9,499 14,188 23,687 Total additions 8,020 22,147 22,922 53,089

Other movementsDepreciation/amortisation expense (19,334) (21,999) (6,601) (47,934) Depreciation/amortisation expense - restructuring - (355) (5,914) (6,269) Total other movements (19,334) (22,354) (12,515) (54,203)

As at 30 June 2014Gross book value 315,041 172,680 75,506 563,227 Accumulated depreciation/amortisation

and impairment (72,012) (69,398) (38,425) (179,835) Closing net book balance 243,029 103,282 37,081 383,392

Prepared on Australian Accounting Standards basis.1 "Appropriation equity" refers to equity injections provided through Appropriation Act No.2 and Bill No. 4 2013-14 .2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Act No.1 and Bill No. 3 2013-14 for DCBs.

Agency Additional Estimates Statement — Department of the Environment

Schedule of Administered Activity

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)

91


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 106,226 57,155 53,897 58,857 54,971 Subsidies - - - - - Grants 516,348 794,808 883,960 1,246,551 1,114,331 Depreciation and amortisation 425 - - - - Write-dow n and impairment

of assets 344,332 - - - - Other 868 1,192 - - -

Total expenses administeredon behalf of Government 968,199 853,155 937,857 1,305,408 1,169,302

LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Other 101,810 99,099 122 145 1,498 Total taxation revenue 101,810 99,099 122 145 1,498

Non-taxation revenueSale of goods and rendering

of services 572 1,530 1,530 1,530 1,530 Fees and f ines 8,268 9,324 24,183 28,718 20,978 Interest 693 525 285 97 38 Grant repayments - - - - - Other 2,589 3,178 2,228 2,228 15,465

Total non-taxation revenue 12,122 14,557 28,226 32,573 38,011 Total own-source revenues

administered on behalf of Government 113,932 113,656 28,348 32,718 39,509



92


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

GainsReversal of previous asset

w rite-dow ns and impairments 112 - - - - Other 47,722 118,474 142,376 149,836 170,450

Total gains administeredon behalf of Government 47,834 118,474 142,376 149,836 170,450

Total own-sourced incomeadministered on behalf of

Government 161,766 232,130 170,724 182,554 209,959 Net Cost of (contribution by)

services 806,433 621,025 767,133 1,122,854 959,343 Surplus (Deficit) (806,433) (621,025) (767,133) (1,122,854) (959,343)

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus (6,009) - - - -

Total other comprehensive income (6,009) - - - -

Total comprehensive income (loss) (812,442) (621,025) (767,133) (1,122,854) (959,343) Prepared on Australian Accounting Standards basis.


Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

93


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

ASSETS ADMINISTERED ONBEHALF OF GOVERNMENTFinancial assets

Cash and cash equivalents - - - - - Receivables 13,551 11,216 8,906 8,120 5,785 Taxation receivables 22,806 35,000 - - - Other investments 561,520 562,045 562,045 562,045 562,045

Total financial assets 597,877 608,261 570,951 570,165 567,830

Non-financial assetsLand and buildings 1,467 1,467 1,467 1,467 1,467 Property, plant and equipment 506,448 506,448 506,448 506,448 506,448 Inventories 12,559 12,559 12,559 12,559 12,559 Intangibles 1,874,779 2,065,775 2,279,575 2,495,017 2,750,629

Total non-financial assets 2,395,253 2,586,249 2,800,049 3,015,491 3,271,103

Total assets administered on behalf of Government 2,993,130 3,194,510 3,371,000 3,585,656 3,838,933

LIABILITIES ADMINISTERED ONBEHALF OF GOVERNMENTPayables

Suppliers 7,103 7,103 7,103 7,103 7,103 Grants 23,058 23,058 23,058 23,058 23,058 Other 63 63 63 63 63

Total payables 30,224 30,224 30,224 30,224 30,224

Total liabilities administeredon behalf of Government 30,224 30,224 30,224 30,224 30,224

Net assets/(liabilities) 2,962,906 3,164,286 3,340,776 3,555,432 3,808,709 Prepared on Australian Accounting Standards basis.


Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)

94


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000


Sales of goods and rendering of services 650 1,530 1,530 1,530 1,530

Fees and f ines 8,263 9,324 24,183 28,718 20,978 Interest 741 525 285 97 38 Taxes 79,004 86,905 35,122 145 1,498 Net GST received 50,743 - - - - Other 2,045 3,178 2,228 2,228 15,465

Total cash received 141,446 101,462 63,348 32,718 39,509

Cash usedSuppliers 110,506 41,549 55,397 55,357 58,571 Grant payments 683,409 794,808 883,960 1,246,551 1,114,331 Other 882 1,192 - - -

Total cash used 794,797 837,549 939,357 1,301,908 1,172,902 Net cash from (used by)

operating activities (653,351) (736,087) (876,009) (1,269,190) (1,133,393)



95


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

INVESTING ACTIVITIESCash received

Repayments of advances and loans 2,118 2,335 2,310 786 340

Total cash received 2,118 2,335 2,310 786 340

Cash usedPurchase of property, plant,

equipment and intangibles 121,242 72,522 71,424 65,606 85,162 Total cash used 121,242 72,522 71,424 65,606 85,162 Net cash from (used by)

investing activities (119,124) (70,187) (69,114) (64,820) (84,822)

Net increase (decrease) incash held (772,475) (806,274) (945,123) (1,334,010) (1,218,215) Cash and cash equivalents at

beginning of reporting period - - - - - Cash from Official Public Account for:- Appropriations 711,008 606,934 671,311 956,556 803,082 - Special Accounts 205,221 302,517 326,666 397,100 443,356

916,229 909,451 997,977 1,353,656 1,246,438 Cash to Official Public Account for:

- Appropriations 119,987 100,242 52,854 19,646 28,223 - Special Accounts 23,767 2,935 - - -

143,754 103,177 52,854 19,646 28,223 Cash and cash equivalents at

end of reporting period - - - - -



Table 3.2.10: Schedule of Administered Capital Budget Statement

96


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSAdministered Assets and

Liabilities - Act 2 159,620 6,349 320,599 - 269,574 Total new capital appropriations 159,620 6,349 320,599 - 269,574

Provided for:Purchase of non-f inancial assets 159,620 6,261 320,599 - 269,574 Other Items - 88 - - -

Total Items 159,620 6,349 320,599 - 269,574

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations 1 119,120 72,522 71,424 65,606 85,162

TOTAL AMOUNT SPENT 119,120 72,522 71,424 65,606 85,162

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total accrual purchases 119,120 72,522 71,424 65,606 85,162 Total cash used to

acquire assets 119,120 72,522 71,424 65,606 85,162

Prepared on Australian Accounting Standards basis.Consistent w ith information contained in the Statement of Asset Movements and the Budgeted Statement of Cash Flow s.1 Includes funding from both current and prior appropriations.

97

Agency A

dditional Estimates Statem

ent — D

epartment of the Environm

entTable 3.2.11: Statement of Administered Asset Movements (2013-14)

Land Other property, Intangibles Totalplant and

equipment$'000 $'000 $'000 $'000

As at 1 July 2013Gross book value 1,467 506,448 1,874,779 2,382,694 Accumulated depreciation/amortisation

and impairment - - - - Opening net book balance 1,467 506,448 1,874,779 2,382,694

CAPITAL ASSET ADDITIONSEstimated expenditure on new or

replacement assetsBy purchase - appropriation equity 1 - - 72,522 72,522 By purchase - appropriation ordinaryOther 2 - - 118,474 118,474 Total additions - - 190,996 190,996

As at 30 June 2014Gross book value 1,467 506,448 2,065,775 2,573,690 Accumulated depreciation/amortisation

and impairment - - - - Closing net book balance 1,467 506,448 2,065,775 2,573,690

Prepared on Australian Accounting Standards basis.1 "Appropriation equity" refers to Administered Assets and Liabilities appropriations provided through Appropriation Act No.2 and Bill No.4 2013-14.2 Transfer of water entitlements from the Sustainable Rural Water Use and Infrastructure Programme.

CLEAN ENERGY REGULATOR

Section 1: Agency Overview and Resources...........................................................951.1 Strategic Direction.................................................................................................951.2 Agency Resource Statement.................................................................................951.3 Agency Measures Table........................................................................................971.4 Additional Estimates and Variations......................................................................991.5 Breakdown of Additional Estimates by Appropriation Bill....................................100

Section 2: Revisions to Agency Outcomes and Planned Performance..............1012.1 Resources and Performance Information............................................................101

Section 3: Explanatory Tables and Budgeted Financial Statements...................1033.1 Explanatory Tables..............................................................................................1033.2 Budgeted Financial Statements..........................................................................104

93

Agency Additional Estimates Statements — Clean Energy Regulator

CLEAN ENERGY REGULATOR


1.1 STRATEGIC DIRECTION

Details of the Clean Energy Regulator’s strategic direction and program structures are contained in the 2013-14 Industry, Innovation, Climate Change, Science, Research and Tertiary Education 2013-14 Portfolio Budget Statements.

The adjustment to the Clean Energy Regulator’s revenue and expenses, in the forward years, reflects the Government’s commitment to repeal the carbon pricing mechanism. The additional appropriation of $14.4 million over three years was provided to fund the previous Government’s commitment to the early delivery of the flexible price period and included accelerating delivery of other core capability.

The Clean Energy Regulator’s appropriation is reduced by $10.2 million over the Budget and forward years through Government savings measures, parameter adjustments and efficiency dividends.

1.2 AGENCY RESOURCE STATEMENT

The Agency Resource Statement details the resourcing for the Clean Energy Regulator at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2013-14 Budget year, including variations through Appropriation Bill Nos. 3 and 4, Special Appropriations and Special Accounts.

99


Table 1.1: Clean Energy Regulator Resource Statement Budget Estimates for 2013-14 as at Additional Estimates February 2014

100

Estimate as Proposed Total Totalat Budget + Additional = estimate available

Estimate at Additional appropriationEstimates

2013-14 2013-14 2013-14 2012-13$'000 $'000 $'000 $'000

Ordinary annual services1

Departmental appropriationPrior year departmental appropriation2 13,792 - 13,792 -Departmental appropriation3 80,257 3,118 83,375 80,822s31 Relevant agency receipts4 - 345 345 2,936Total 94,049 3,463 97,512 83,758

Administered expensesOutcome 1 3,745 - 3,745 3,862Total 3,745 - 3,745 3,862

Total ordinary annual services A 97,794 3,463 101,257 87,620Other services5

Departmental non- operatingEquity injections 7,289 5,264 12,553 17,757Total 7,289 5,264 12,553 17,757

Total other services B 7,289 5,264 12,553 17,757Total available annual

appropriations 105,083 8,727 113,810 105,377Special appropriationsSpecial appropriations limited

by criteria/entitlementClean Energy Act 2011 6 1,262,671 2,203,808 3,466,479 704,029Renewable Energy (Electricity) Act 2000 1,605 - 1,605 -

Total special appropriations C 1,264,276 2,203,808 3,468,084 704,029Total net resourcing for CER (A+B+C) 1,369,359 2,212,535 3,581,894 809,4061 Appropriation Act No. 1 2013-14 and Appropriation Bill No. 3 2013-14.2 Estimated adjusted balance carried from previous year for annual appropriations.3 Includes an amount of $2.022m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 Relevant Agency receipts - estimate.5 Appropriation Act No. 2 2013-14 and Appropriation Bill No. 4 2013-14.6 Estimates have been developed in consultation with Treasury.Reader note: All figures are GST exclusive.


1.3 AGENCY MEASURES TABLE

Table 1.2 summarises new Government measures taken since the 2013-14 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.


101

Program 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000

Revenue measuresCarbon pricing mechanism - replacing f ixed price w ith an emissions trading scheme from 1 July 20141 1.1

Administered revenues - (6,970,000) - -Total - (6,970,000) - -Repeal of the carbon tax - forgone revenue from the repeal of the carbon 1.1

Administered revenues - (2,020,000) (4,230,001) (6,220,000)Total - (2,020,000) (4,230,001) (6,220,000)Total revenue measures

Administered - (8,990,000) (4,230,001) (6,220,000)Total - (8,990,000) (4,230,001) (6,220,000)

Expense measuresCarbon pricing mechanism - reforms to energy security fund1 1.1

Administered expenses - 245,225 (512,972) (781,135)Total - 245,225 (512,972) (781,135)Carbon pricing mechanism - replacing f ixed price w ith an emissions trading scheme from 1 July 20141 1.1

Administered expenses - (3,140,516) - -Departmental expenses 3,694 2,754 688 -

Total 3,694 (3,137,762) 688 -Repeal of the carbon tax - abolishing business compensation1 1.1

Administered expenses - (679,230) (1,408,621) (2,192,376)Total - (679,230) (1,408,621) (2,192,376)Repeal of the carbon tax - abolishing energy market compensation 1.1

Administered expenses - (513,806) - -Total - (513,806) - -Former Department of Climate Change and Energy Eff iciency - reduction in funding 1.1

Departmental expenses (449) (847) (847) (847)Total (449) (847) (847) (847)



102

Program 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000

Public Services eff iciencies2 1.1Departmental expenses (8) (39) (86) (119)

Total (8) (39) (86) (119)

Reforms to the APS management and eff icient procurement of agency softw are 1.1

Departmental expenses (119) (150) (196) (118)Total (119) (150) (196) (118)

Eff iciency Dividend - temporary increase in the rate 1.1

Departmental expenses - (812) (1,775) (2,746)Total - (812) (1,775) (2,746)

Total expense measuresAdministered - (4,088,327) (1,921,593) (2,973,511)Departmental 3,118 906 (2,216) (3,830)

Total 3,118 (4,087,421) (1,923,809) (2,977,341)Capital measuresCarbon pricing mechanism - replacing f ixed price w ith an emissions trading scheme from 1 July 2014 1.1

Departmental capital 5,264 2,027 - -Total 5,264 2,027 - -Total capital measures

Departmental 5,264 2,027 - -Total 5,264 2,027 - -Prepared on a Government Financial Statistics (f iscal) basis.1 Estimates have been developed in consultation w ith Treasury.2 Public Services eff iciencies w ere announced in the 2013-14 Budget but have not been previously reported in the Portfolio Statements


1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Clean Energy Regulator at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2013-14 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations through other factors.



103

Program 2013-14 2014-15 2015-16 2016-17impacted $'000 $'000 $'000 $'000


Carbon pricing mechanism - replacing fixed price w ith an emissions trading scheme from 1 July 2014

1.1

Departmental expenses 3,694 2,754 688 -Departmental capital 5,264 2,027 - -

Decrease in estimates (departmental)Former Department of Climate Change and Energy Eff iciency - reduction in funding

1.1

Departmental expenses (449) (847) (847) (847)Public Services eff iciencies 1.1

Departmental expenses (8) (39) (86) (119)Reforms to the APS management and eff icient procurement of agency softw are

1.1

Departmental expenses (119) (150) (196) (118)Eff iciency Dividend - temporary increase in the rate

1.1

Departmental expenses - (812) (1,775) (2,746)Net impact on estimates

for Outcome 1 (departmental) 8,382 2,933 (2,216) (3,830)

Program 2013-14 2014-15 2015-16 2016-17impacted $'000 $'000 $'000 $'000

Outcome 1Decrease in estimates (departmental)

Parameter adjustments 1.1 - (230) (379) (456)Net impact on estimates

for Outcome 1 (departmental) - (230) (379) (456)


1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Clean Energy Regulator through Appropriation Bills Nos. 3 and 4.



104


$'000 $'000 $'000 $'000 $'000DEPARTMENTAL PROGRAMSOutcome 1

Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of a carbon price on liable emissions intensive businesses and other entities; promoting additional renew able electricity generation; and land-based initiatives that support carbon abatement.

80,822 80,257 83,375 3,118 -

Total departmental 80,822 80,257 83,375 3,118 -


$'000 $'000 $'000 $'000 $'000Non-operatingEquity injections1 17,757 7,289 12,553 5,264 -Total non-operating 17,757 7,289 12,553 5,264 -1 The equity injection available in 2012-13 includes an amount of $5.098m that is to be returned to Government.


Section 2: Revisions to Agency Resources and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

Complete details of the Clean Energy Regulator’s resources and performance information are contained in the 2013-14 Industry, Innovation, Climate Change, Science, Research and Tertiary Education 2013-14 Portfolio Budget Statements.

OUTCOME 1

Outcome 1 Strategy

There has been no change to the Clean Energy Regulator’s outcome strategy since the 2013-14 Portfolio Budget Statements.

Table 2.1: Budgeted Expenses for Outcome 1

105


expenses Estimatedexpenses

$'000 $'000Program 1.1: Clean Energy RegulatorAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 4,270 3,745Special appropriations1 704,029 3,468,084

Departmental expenses2

Departmental appropriation3 79,228 81,698Expenses not requiring appropriation in the Budget year3 249,834 82,724

Total for Program 1.1 1,037,361 3,636,251Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 4,270 3,745Special appropriations1 704,029 3,468,084

Departmental expenses2

Departmental appropriation3 79,228 81,698Expenses not requiring appropriation in the Budget year4 249,834 82,724

Total expenses for Outcome 1 1,037,361 3,636,251

2012-13 2013-14Average Staffing Level (number) 349 3441 Estimates have been developed in consultation w ith Treasury.2 Outcome 1 also has a departmental capital budget of $2.022 million in 2013-143 Departmental Appropriation combines "Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)" and "Revenue from independent sources (s31)".4 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense, make good expense, other gains, w rite-dow n of assets, liability for buy-back of f ree permits and surrender of carbon credits.

Outcome 1: Contribute to a reduction in Australia's net greenhouse gas emissions, including through the administration of a carbon price on liable emissions intensive businesses and other entities; promoting additional renew able electricity generation; and land-based initiatives that support carbon abatement.



No changes have occurred to the program objectives since the 2013-14 Portfolio Budget Statements.

Program 1.1 Expenses


No changes have occurred to the program deliverables since the 2013-14 Portfolio Budget Statements.


No changes have occurred to the program key performance indicators since the 2013-14 Portfolio Budget Statements.

106



Annual administered expenses:Administered item 4,270 3,745 3,817 3,817 3,817

Special Appropriations: `Clean Energy Act 2011 1 704,029 3,466,479 - - Renewable Energy (Electricity) Act 2000 - 1,605 2,588 2,947 2,617

Program support 79,228 81,698 77,166 74,310 73,525 Expenses not requiring appropriation in

the Budget year2 249,834 82,724 12,751 14,184 14,220 Total program expenses 1,037,361 3,636,251 96,322 95,258 94,1791 Estimates have been developed in consultation w ith Treasury.2 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense, make good expense, other gains, w rite-dow n of assets, liability for buy-back of f ree permits and surrender of carbon credits.



3.1 EXPLANATORY TABLES

Estimates of Special Account Flows

Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Clean Energy Regulator. The corresponding table in the 2013-14 PB Statements is Table 3.1.2.

Table 3.1.1: Estimates of Special Account Flows and Balances

107

Opening Closingbalance Receipts Payments Adjustments balance2013-14 2013-14 2013-14 2013-14 2013-142012-13 2012-13 2012-13 2012-13 2012-13

Outcome $'000 $'000 $'000 $'000 $'000Renew able Energy SpecialAccount (Administered) 1 - 18,369 (18,369) - -Total Special Accounts

2013-14 Budget estimate - 18,369 (18,369) - -Total Special Accounts

2012-13 actual - - - - -


3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of Budgeted Financial Statements

The Clean Energy Regulator is budgeting to incur expenses of $98.8 million in 2013-14.

The Clean Energy Regulator is budgeting for a break-even position in 2013-14 excluding non-appropriated expenses relating to depreciation and amortisation.




108

for the period ended 30 JuneActual Revised Forw ard Forw ard Forw ard

budget estimate estimate estimate2012-13 2013-14 2014-15 2015-16 2016-17

$'000 $'000 $'000 $'000 $'000EXPENSESEmployee benef its 40,679 44,265 43,100 42,694 42,242Suppliers 38,752 37,433 34,066 31,616 31,283Depreciation and amortisation 13,030 17,059 12,751 14,184 14,220Finance costs 30 - - - -Write-dow n and impairment of assets 2,524 - - - -Losses from asset sales 123 - - - -Total expenses 95,138 98,757 89,917 88,494 87,745LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 429 345 - - -Total own-source revenue 429 345 - - -GainsOther gains 1,181 - - - -Total gains 1,181 - - - -Total own-source income 1,610 345 - - -Net cost of (contribution by)

services 93,528 98,412 89,917 88,494 87,745Revenue from Government 78,799 81,353 77,166 74,310 73,525Surplus (Deficit) (14,729) (17,059) (12,751) (14,184) (14,220)OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to profit or loss

Changes in asset revaluation surplus 3,581 - - - -

Total other comprehensive income 3,581 - - - -Total comprehensive income (loss) (11,148) (17,059) (12,751) (14,184) (14,220)



109

Note: Impact of Net Cash Appropriation Arrangements2012-13 2013-14 2014-15 2015-16 2016-17

$'000 $'000 $'000 $'000 $'000Total Comprehensive Income

(loss) excluding depreciation/amortisation expenses previously funded throughrevenue appropriations 1,882 - - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations1 13,030 17,059 12,751 14,184 14,220

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (11,148) (17,059) (12,751) (14,184) (14,220)

Prepared on Australian Accounting Standards basis.1 From 2010-11, the Government introduced net cash appropriation arrangements w here Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies w ere replaced w ith a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


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

110


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and cash equivalents 297 297 297 297 297Trade and other receivables 23,373 13,881 13,829 14,122 14,122Other f inancial assets 162 88 98 110 110

Total financial assets 23,832 14,266 14,224 14,529 14,529Non-financial assets

Land and buildings 7,447 5,540 3,638 1,736 1Property, plant and equipment 950 608 344 702 550Intangibles 44,266 44,031 39,050 27,599 16,460Other non-financial assets 373 356 356 354 354

Total non-financial assets 53,036 50,535 43,388 30,391 17,365Total assets 76,868 64,801 57,612 44,920 31,894LIABILITIESPayables

Suppliers 11,167 9,820 9,278 9,081 9,081Other payables 1,342 1,342 1,342 1,342 1,342

Total payables 12,509 11,162 10,620 10,423 10,423Provisions

Employee provisions 9,431 9,931 10,431 10,931 10,931Other provisions 1,407 1,407 1,407 1,407 1,407

Total provisions 10,838 11,338 11,838 12,338 12,338Total liabilities 23,347 22,500 22,458 22,761 22,761Net assets 53,521 42,301 35,154 22,159 9,133EQUITY

Contributed equity 65,998 71,837 77,441 78,630 79,824Reserves 3,581 3,581 3,581 3,581 3,581Retained surplus

(accumulated deficit) (16,058) (33,117) (45,868) (60,052) (74,272)Total equity 53,521 42,301 35,154 22,159 9,133Prepared on Australian Accounting Standards basis.


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

111

Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000

Opening balance as at 1 July 2013Balance carried forw ard from

previous period (16,058) 3,581 65,998 53,521Adjusted opening balance (16,058) 3,581 65,998 53,521Comprehensive income

Surplus (Def icit) for the period (17,059) - - (17,059)

Total comprehensive income (17,059) - - (17,059)Transactions w ith owners

Distributions to ownersReturns of capital:

Distribution of equity - - (8,736) (8,736)Contributions by owners

Equity Injection - Appropriation - - 12,553 12,553Departmental Capital Budget (DCBs) - - 2,022 2,022

Sub-total transactions with owners - - 5,839 5,839Estimated closing balance

as at 30 June 2014 (33,117) 3,581 71,837 42,301Prepared on Australian Accounting Standards basis.


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

112


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000


Appropriations 81,751 82,394 77,404 74,204 73,525Sale of goods and rendering of services 96 345 - - -Net GST received 6,450 - - - -Other 2,936 - - - -

Total cash received 91,233 82,739 77,404 74,204 73,525Cash used

Employees 40,683 43,819 42,656 42,252 42,242Suppliers 45,753 38,920 34,748 31,952 31,283Section 31 receipts transferred to OPA 759 - - - -

Total cash used 87,195 82,739 77,404 74,204 73,525Net cash from (used by)

operating activities 4,038 - - - -Cash used

Purchase of property, plant,equipment and intangibles 38,788 14,575 5,604 1,189 1,194

Total cash used 38,788 14,575 5,604 1,189 1,194Net cash from (used by)

investing activities (38,788) (14,575) (5,604) (1,189) (1,194)FINANCING ACTIVITIESCash received

Contributed equity 34,756 14,575 5,604 1,189 1,194Total cash received 34,756 14,575 5,604 1,189 1,194Net cash used by

financing activities 34,756 14,575 5,604 1,189 1,194Net increase (decrease)

in cash held 6 - - - -Cash and cash equivalents at the

beginning of the reporting period 291 297 297 297 297Cash and cash equivalents at the

end of the reporting period 297 297 297 297 297Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental Capital Budget Statement

113


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Act No. 1 (DCB) 2,023 2,022 1,198 1,189 1,194Equity injections - Act No. 2 12,659 12,553 4,406 - -

Total new capital appropriations 14,682 14,575 5,604 1,189 1,194

Provided for:Purchase of non-financial assets 14,682 14,575 5,604 1,189 1,194

Total Items 14,682 14,575 5,604 1,189 1,194PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations1 28,671 12,553 4,406 - -Funded by capital appropriation - DCB2 2,023 2,022 1,198 1,189 1,194Funded internally f rom

departmental resources3 731 - - - -TOTAL AMOUNT SPENT 31,425 14,575 5,604 1,189 1,194RECONCILIATION OF CASH

USED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 38,788 14,575 5,604 1,189 1,194Total cash used to

acquire assets 38,788 14,575 5,604 1,189 1,194Consistent w ith information contained in the Statement of Asset Movements and the Budgeted Statement of Cash Flow s.1 Includes both current and prior Act No. 2 and Bill No. 4 appropriations.2 Does not include annual f inance lease costs. Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).3 Includes additions by donations/gifts.


Table 3.2.6: Statement of Asset Movements (2013-14)

114

Buildings Other property, Computer Totalplant and softw are and

equipment intangibles$'000 $'000 $'000 $'000

As at 1 July 2013Gross book value 7,612 950 59,598 68,160Accumulated depreciation/amortisation

and impairment (165) - (15,332) (15,497)Opening net book balance 7,447 950 44,266 52,663-CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equity1 - - 12,553 12,553By purchase - appropriation ordinary

annual services2 - - 2,022 2,022Total additions - - 14,575 14,575Other movementsDepreciation/amortisation expense (1,907) (342) (14,810) (17,059)Total other movements (1,907) (342) (14,810) (17,059)As at 30 June 2014Gross book value 7,612 950 74,173 82,735Accumulated depreciation/amortisation

and impairment (2,072) (342) (30,142) (32,556)Closing net book balance 5,540 608 44,031 50,179

Prepared on Australian Accounting Standards basis.1 "Appropriation equity" refers to equity injections provided through Appropriation Act No. 2 and

Bill No. 4 2013-14.2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Act

No. 1 and Bill No. 3 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses.


Schedule of Administered Activity


115


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 4,270 5,350 6,405 6,764 6,434Write-down and impairment of assets 209 - - - -

Total expenses administeredon behalf of Government 4,479 5,350 6,405 6,764 6,434

LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Carbon price permits1 5,047,404 7,340,000 - - -Value of free permits and carbon credits1 (937,744) (3,532,144) - - -Other taxes 825 6,088 5,816 5,322 5,631

Total taxation revenue 4,110,485 3,813,944 5,816 5,322 5,631Non-taxation revenue

Fees and f ines 19,383 12,332 10,925 10,680 11,142Total non-taxation revenue 19,383 12,332 10,925 10,680 11,142Total own-source revenues

administered on behalf of Government 4,129,868 3,826,276 16,741 16,002 16,773

GainsFair value gains carbon price1 - 156,732 - - -

Total gains administeredon behalf of Government - 156,732 - - -

Total own-sourced incomeadministered on behalf ofGovernment 4,129,868 3,983,008 16,741 16,002 16,773

Net Cost of (contribution by)services (4,125,389) (3,977,658) (10,336) (9,238) (10,339)

Surplus (Deficit) 4,125,389 3,977,658 10,336 9,238 10,339Total comprehensive income (loss) 4,125,389 3,977,658 10,336 9,238 10,339Prepared on Australian Accounting Standards basis.1 Estimates have been developed in consultation w ith Treasury.


Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

116


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000

ASSETS ADMINISTERED ONBEHALF OF GOVERNMENTFinancial assets

Cash and cash equivalents 1,305 1,305 1,305 1,305 1,305Carbon price revenue receivable1 1,417,729 1,695,000 - - -Trade and other receivables 81 81 81 81 81

Total financial assets 1,419,115 1,696,386 1,386 1,386 1,386Total assets administered

on behalf of Government 1,419,115 1,696,386 1,386 1,386 1,386LIABILITIES ADMINISTERED ONBEHALF OF GOVERNMENTPayables

Suppliers 3,667 3,667 3,667 3,667 3,667Subsidies1 231,151 332,896 - - -

Total payables 234,818 336,563 3,667 3,667 3,667Provisions

Other provisions 262 262 262 262 262Total provisions 262 262 262 262 262Total liabilities administered

on behalf of Government 235,080 336,825 3,929 3,929 3,929

Net assets/(liabilities) 1,184,035 1,359,561 (2,543) (2,543) (2,543)Prepared on Australian Accounting Standards basis.1 Estimates have been developed in consultation w ith Treasury.



117


2012-13 2013-14 2014-15 2015-16 2016-17$'000 $'000 $'000 $'000 $'000


Carbon price and other receipts1 3,631,103 7,186,088 1,700,816 5,322 5,631Fees and f ines 19,174 12,332 10,925 10,680 11,142Net GST received 406 - - - -

Total cash received 3,650,683 7,198,420 1,711,741 16,002 16,773Cash used

Subsidies paid1 704,029 3,466,479 332,896 - -Suppliers 5,826 5,350 6,405 6,764 6,434

Total cash used 709,855 3,471,829 339,301 6,764 6,434Net cash used by

operating activities 2,940,828 3,726,591 1,372,440 9,238 10,339Net increase (decrease) in

cash held 2,940,828 3,726,591 1,372,440 9,238 10,339Cash and cash equivalents at

beginning of reporting period 2,101 1,305 1,305 1,305 1,305Cash from Off icial Public Account for:

- Appropriations 710,188 3,471,829 339,301 6,764 6,434710,188 3,471,829 339,301 6,764 6,434

Cash to Official Public Account for:- Appropriations (3,651,812) (7,198,420) (1,711,741) (16,002) (16,773)

(3,651,812) (7,198,420) (1,711,741) (16,002) (16,773)Cash and cash equivalents at endof reporting period 1,305 1,305 1,305 1,305 1,305Prepared on Australian Accounting Standards basis.1 Estimates have been developed in consultation w ith Treasury.


Notes to the Financial Statements

The statements have been prepared in accordance with:

Finance Minister’s Orders (FMOs), being the Financial Management and Accountability Orders;

Australian Equivalents of International Financial Reporting Standards (AEIFRS) issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and

interpretations issued by the AASB and Urgent Issues Group (UIG) that apply for the reporting period.

The statements have been prepared on an accrual basis and are in accordance with historical cost principles except for certain assets, which, as noted, are at valuation.

DepartmentalIncomeIncome includes the following items:

Revenues from Government—amounts appropriated to the Agency. Goods and Services—revenue is recognised upon the delivery of goods and

services to customers.

ExpensesAll expenses are recognised on an accrual basis, as and when these can be reliably estimated.

AssetsLand, buildings, plant and equipment are carried at their fair value.

Non-current assets are reviewed at balance date for internal and external indications of impairment. Where indications of impairment are identified for an asset, its recoverable amount is determined and where lower than its carrying amount, written down to that amount.

The Department’s intangible assets comprise the acquisition of software configured for internal use and internally developed software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

118


LiabilitiesLiabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. The liability for employee benefits includes provision for annual leave and long service leave.

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within twelve months of balance date are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled which represent their fair value. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

AdministeredAdministered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

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