NB: Commitments are GST inclusive where relevant.
Department
of Sustainability,
Environment, Water, Population and Communities 1
Annual Report 2011–12 1
Environmental Credentials Statement 1
Contents 3
Letter of transmittal 5
Guide to the annual report 6
Structure 6
Executive summary 6
Report on performance by outcome 6
Financial statements 7
Glossary, list of requirements and index 7
Further information 7
Executive summary 8
Secretary’s review 8
Biodiversity and ecosystems 9
Waste 9
Carbon pricing 9
Sustainable communities 10
Antarctica 10
Water 10
Portfolio structure 10
Department overview 10
Our mission 10
Role and functions 10
Outcome and program structure 11
Outcome and program structure 11
Senior executive team 11
Organisation overview of the portfolio at 30 June 2012 12
Summary of financial performance 15
Outcome 1: Biodiversity and ecosystems 16
‘Conserving and protecting Australia’s unique biodiversity.’ 16
Main responsibilities for this outcome 16
Objectives 16
Highlights 17
Key achievements 19
Strategies 21
Program 1.1: Sustainable management of natural resources and the environment 21
Caring for our Country 21
Australia’s Biodiversity Conservation Strategy 2010–30 26
Biodiscovery 26
Convention on Biological Diversity 27
Tasmanian Forests Intergovernmental Agreement 27
Program 1.2 Environmental regulation, information and research 27
Australian Biological Resources Study 27
Progressing the government’s international whale conservation agenda 28
National Environmental Research Program 29
International marine conservation initiatives 29
Environmental biosecurity 29
Effective management of existing Commonwealth marine reserves 30
Development of new Commonwealth marine reserves 30
Migratory birds agreements 30
Montara Environmental Monitoring Program 30
Program 1.3 Carbon pollution reduction—land sector initiatives 31
Land Sector Carbon and Biodiversity Board 31
Biodiversity Fund 31
Regional Natural Resource Management Planning for Climate Change Fund (Stream 1) 32
Evaluation and conclusions 33
Caring for our Country 33
Round One Biodiversity Fund online survey 35
Review of recovery plans 35
Case Study 1: Southern Tanami Indigenous Protected Area (part of Working on Country) 36
Case Study 2: Bush Blitz Northern Territory style 37
Case Study 3: Dugongs (part of Caring for our Country) 38
Case Study 4: Working on Country (part of Caring for our Country) 38
Results for Deliverables and Key Performance Indicators 39
Program 1.1: Sustainable Management of Natural Resources and the Environment 39
Program 1.2: Environmental Information and Research 44
Program 1.2: Environmental Information and Research 47
Program 1.3: Carbon Pollution Reduction–Land Sector Initiatives 50
Operation of the Natural Heritage Trust of Australia Act 1997 54
Purpose and objectives of the Natural Heritage Trust 54
Caring for our Country 54
2011–12 Natural Heritage Trust expenditure 55
Outcome 2: Sustainable population and communities 59
‘Improving environmental quality, reducing pollution and promoting a sustainable Australia.’ 59
Main responsibilities for this outcome 59
Objectives 59
Highlights 59
Key achievements 60
Strategies 61
Leading and promoting national approaches 61
National legislation and policy development 64
Suburban Jobs 66
Evaluation and conclusions 67
Review of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and Regulations 67
Case Study 1: National Television and Computer Recycling Scheme 67
Case Study 2: Enforcement of the Fuel Quality Standards Act 2000 68
Results for Deliverables and Key Performance Indicators 69
Program 2.1: Management of hazardous wastes, substances and pollutants 69
Program 2.3: Sustainable communities 73
Operation of the Product Stewardship Act 2011 75
Purpose of the Act 75
Operational aspects of the Act 75
Voluntary product stewardship 75
Co-regulatory product stewardship 75
Regulatory (mandatory) product stewardship 76
Product notice 76
Product Stewardship Advisory Group 77
Freedom of Information 78
Administrative Appeals Tribunal 78
Reporting 78
Financial information 78
Additional information 78
Operation of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 79
Purpose 79
Operation 79
Licensing 80
Quota 80
Revenue 80
End-use regulations 80
Product stewardship 81
Permits 81
Projects funded from the Ozone Protection and SGG Account 84
Refrigeration and air conditioning 85
Compliance and enforcement activities 85
Finances 86
Fire protection 86
Finances 86
Montreal Protocol’s Multilateral Fund 87
Operation of the Hazardous Waste (Regulation of Exports and Imports) Act 1989 88
Purpose of the Act 88
Operational aspects of the Act 88
Compliance and enforcement 88
Freedom of Information 88
Administrative Appeals Tribunal 88
Reporting 89
Monitoring and evaluation 89
Financial information 89
Committees 89
Additional information 89
Operation of the Fuel Quality Standards Act 2000 90
Purpose of the Act 90
Operational aspects of the Act 92
Fuel quality standards 92
Amendments to the Fuel Quality Standards Regulations 2001 92
Compliance and enforcement 92
Freedom of Information 93
Administrative Appeals Tribunal 93
Reporting 93
Monitoring and evaluation 94
Financial information 94
Committees 94
Operation of the Product Stewardship (Oil) Act 2000 101
Purpose of the Act 101
Operational aspects of the Act 101
Compliance and enforcement 103
Reporting 103
Product stewardship levy 103
Product stewardship benefits 104
Financial Information 106
Committees 106
Outcome 3: Antarctica 107
‘Advancing Australia’s interests in the Antarctic.’ 107
Main responsibilities for this outcome 107
Objectives 107
Highlights 107
Key achievements 108
Strategies 109
Case Study 1: Antarctic Oceanographic Research: a changing Southern Ocean 110
Case Study 2: Ice core reveals unusual decline in eastern Australian rainfall 110
Results for Deliverables and Key Performance Indicators 111
Program 3.1: Antarctica: Science, Policy and Presence 111
Outcome 4: Sustainable water 116
‘Improving water management to promote resilient and sustainable communities.’ 116
Main responsibilities for this outcome 116
Objectives 117
Highlights 117
1000 gigalitres of environmental water delivered since inception 117
More than halfway to bridging the gap 117
Infrastructure investment 117
Key achievements 118
Northern Victoria Irrigation Renewal Project, Stage 2 (NVIRP2) 118
Finalisation of the National Water Knowledge and Research Platform 118
Establishment of the Office of Water Science 118
Establishment of the Commonwealth Environmental Water Office 118
Launch of the National Hydrologic Modelling Platform 118
Strategies 119
Evaluation and conclusions 119
Survey of water entitlement sellers under the Restoring the Balance in the Murray–Darling Basin Program 120
Internal Audit Report–Management-initiated Review of the Sustainable Rural Water Use and Infrastructure Program (SRWUIP) 120
Audit of the Private Irrigation Infrastructure Operators Program by the Australian National Audit Office 120
Internal Audit Report–Good Start Review Function of the Commonwealth Environmental Water Holder 121
Case Study 1: First Private Irrigation Infrastructure Operators Program project completed 121
Results for Deliverables and Key Performance Indicators 123
Program 4.1: Water Reform 123
Operation of the Water Efficiency Labelling and Standards Act 2005 133
Purpose 133
2011–12 highlights 134
Operational aspects of the Act 135
Compliance and enforcement 135
Committees 137
Water Efficiency Labelling and Standards Officials Group 137
Water Efficiency Labelling and Standards Advisory Group 137
Communication 137
Consumer research 137
Reporting 137
Additional information 137
Annual report 2011–12 138
Commonwealth Environmental Water 138
Contents 138
Executive summary 138
The Commonwealth Environmental Water Office 138
Commonwealth environmental water in 2011–12 138
Progress on key issues 139
Tables 139
Executive summary 140
Overview for 2011–12 140
Outlook for 2012–13 141
The Commonwealth Environmental Water Office 142
Establishment of the Commonwealth Environmental Water Office 142
Improving transparency, accountability and stakeholder engagement 142
Advisory groups 143
Working with others 144
Commonwealth environmental water in 2011–12 145
Commonwealth environmental water available for use in 2011–12 145
Use of Commonwealth environmental water in 2011–12 146
Catchment summaries 146
Case Study 1: Providing fish refuge from the impact of hypoxic blackwater in the Murray River 150
Carryover of Commonwealth environmental water 151
Progress on key issues 151
2011–12 Portfolio Budget Statement key performance indicators 152
Priorities for 2011–12 152
Draft Basin Plan and environmental watering plan 153
Business and information systems 153
Commonwealth environmental water trading framework 154
Monitoring, evaluating and reporting on the use of Commonwealth environmental water 154
Environmental water shepherding 155
New South Wales water shepherding 155
Queensland water shepherding 155
Management of Commonwealth environmental water 155
Transparency and accountability in the use of Commonwealth environmental water 158
Commonwealth environmental water reporting 158
Environmental Water Holdings Special Account 2011–12 158
Appendix A—Commonwealth Environmental Water Office holdings in the Murray–Darling Basin 160
Appendix B—Commonwealth environmental water delivered in the Murray–Darling Basin in 2011–12 162
Appendix C—Basin catchment summaries of Commonwealth environmental water use in 2011–12 163
Appendix D—Commonwealth environmental water carryover into 2012–13 172
Appendix E—Ecological and management objectives for environmental water use under different water availability scenarios 174
Outcome 5: Environment protection and heritage conservation 176
‘Protecting and conserving Australia’s heritage – our natural, Indigenous and historic treasures.’ 176
Main responsibilities for this outcome 176
Objectives 177
Highlights 177
Key achievements 177
Protection of matters of national environmental significance 177
Heritage Conservation. 178
Protection of the Alligators River Region 179
Strategies 179
Program 5.1: Environment protection and heritage conservation 179
International heritage 179
Kokoda Initiative 180
World Heritage management 180
National and Commonwealth heritage listings 181
National and Commonwealth heritage management 182
Indigenous heritage 182
Committees 182
Program 5.2: Environmental regulation 186
Environment Protection and Biodiversity Conservation Act 1999 and the Environment Protection (Sea Dumping) Act 1981 187
Compliance and enforcement 192
The Supervising Scientist Division 193
Map 5.1: Alligator Rivers Region, Northern Territory 194
Evaluation and conclusions 195
Protection of matters of national environmental significance 195
The Supervising Scientist Division 196
Case Study 1: National Heritage listing of the West Kimberley 196
Case Study 2: Australia protects US warships lost in the Battle of the Coral Sea 197
Case Study 3: Listing of koalas 198
Case Study 4: A new paradigm for assessing water quality performance downstream of the Ranger uranium mine 199
Results for Deliverables and Key Performance Indicators 200
Program 5.1: Environment Protection and Heritage Conservation 200
Program 5.2: Environmental Regulation 203
Operation of the Environment Protection and Biodiversity Conservation Act 1999 206
Contents 206
Overview 207
Protecting the environment 211
1.1 Protecting matters of national environmental significance 211
World and National Heritage 211
World Heritage List 212
National Heritage List 212
Commonwealth Heritage List 212
Wetlands of international importance 212
Threatened species, ecological communities and migratory species 213
1.2 Wildlife trade and management 217
Live imports 217
Sustainable wildlife industries 218
Wildlife trade permits 219
Fisheries assessment and approvals 219
1.3 Protected areas 219
Commonwealth reserves 219
2. Promoting ecologically sustainable development 223
2.1 Strategic Approaches 223
Strategic assessments 223
Case Study 1: Western Sydney’s growth centres program strategic assessment 224
Case Study 2: Molongolo Valley Strategic Assessment 225
Marine bioregional planning 226
Bilateral agreements 226
2.2 Environmental impact assessment 227
Referrals 228
Assessments and approvals 229
Case Study 3: Regional Rail Link 229
Meeting statutory timeframes for assessment approach and approval decisions 230
Actions by the Australian Government and actions on Commonwealth land 230
Case Study 4: BP seismic survey referral decision under the EPBC Act 230
Case Study 5: Chevron Wheatstone approval under the EPBC Act 231
Statements of reasons 232
Reconsideration of a decision 232
Sea dumping 232
2.3 Compliance and enforcement 233
Working with others 233
Compliance audit plan 234
Breaches and investigations 235
Legal actions 237
3. EPBC Act regulatory reform 239
Regulatory reform taskforce 239
Legislation amendments 242
Appendix A: Statistics 243
Appendix B: Committees 256
Threatened Species Scientific Committee 256
Indigenous Advisory Committee 256
Appendix C: 2011–12 publications 258
Guidelines and policy statements 258
Pamphlets, factsheets, and other publications 259
Appendix D: Key threatening processes and threat abatement plans 260
Corporate outcome 262
Sustainable performance 262
‘Fostering a culture of excellence, achievement and good governance.’ 262
Main responsibilities for this outcome 262
Corporate governance 262
Corporate and operational planning 262
Executive committees 263
Internal audit 264
Risk management 265
External scrutiny 268
Courts and tribunals 268
Commonwealth Ombudsman 268
Auditor-General reports 268
Parliamentary committee reports 269
Environmental sustainability 274
How the department applies the principles 274
Contribution of outcomes 274
Environmental performance 276
Canberra offices 280
Darwin/Jabiru 284
Parks Australia 288
Australian Antarctic Division 293
Human rights 301
Human resources 301
Workforce profile 302
Performance management 302
Workforce planning 302
Enterprise agreement 303
Learning and development 303
Code of conduct and ethical standards 304
Remuneration for senior executive service officers 304
Disability reporting mechanisms 304
Social inclusion 305
Stakeholder relations 308
Public affairs 308
Online information 308
Ministerial and parliamentary services 308
Community Information 309
Service charter 309
Inquiries and complaints 309
Feedback on performance of service delivery 309
Support for environment, heritage and sustainability organisations 310
International policy advice 311
Procurement 313
Economic Indicators 318
Financial performance 319
Financial performance of departmental activities 319
Financial performance of administered activities 322
Financial position 326
Total assets 326
Total liabilities 326
Total equity 327
Asset management 327
Appendix 1—Workforce profile 327
Appendix 2—Occupational health and safety 329
Work health and safety 329
Health and safety initiatives 330
Workers compensation premium 330
Notifiable incidents 331
Details of notices 331
Investigations conducted by Comcare 332
Appendix 3—Grants programs 332
Outcome 1 Biodiversity and Ecosystems 332
Outcome 2 Sustainable Population and Communities 332
Outcome 3 Antarctica 332
Outcome 4 Sustainable Water 333
Outcome 5 Environmental Protection and Heritage Conservation 333
Appendix 4—Advertising and marketing expenditure 333
Appendix 5—Freedom of information 334
Appendix 6—Corrections to material errors in 2010–11 annual report 335
Appendix 7—Global Reporting Initiative 335
Appendix 8—Agency Resources Statement 2011–12 340
Appendix 9—Expenses for Outcome 343
Expenses for Outcome 1 343
Expenses for Outcome 2 345
Expenses for Outcome 3 346
Expenses for Outcome 4 347
Expenses for Outcome 5 349
Department of Sustainability, Environment, Water, Population and Communities
352
Financial Statements 352
Summary of Significant Accounting Policies 367
Events After the Reporting Period 386
Expenses 386
Income 390
Financial Assets 392
Non-Financial Assets 396
Payables 401
Interest Bearing Liabilities 403
Provisions 405
Restructuring 407
Cash Flow Reconciliation 412
Contingent Assets and Liabilities 413
Related Party Disclosures 413
Senior Executive Remuneration 414
Remuneration of Auditors 418
Financial Instruments 419
Financial Assets Reconciliation 422
Administered – Expenses 423
Administered – Income 426
Administered – Financial Assets 427
Administered – Non-Financial Assets 429
Administered – Payables 434
Administered – Cash Flow Reconciliation 435
Administered – Contingent Assets and Liabilities 436
Administered – Investments 436
Administered – Financial Instruments 436
Administered – Financial Assets Reconciliation 439
Appropriations 440
Special Accounts 449
Compensation and Debt Relief 455
Reporting of Outcomes 457
Cost Recovery 462
Net Cash Appropriation Arrangements 462
Natural Heritage Trust of Australia 463
Financial Statements 463
Note 1: Summary of Significant Accounting Policies 471
Note 2: Events After the Reporting Period 476
Note 3: Expenses 476
Note 4: Income 477
Note 5: Financial Assets 479
Note 6: Payables 480
Note 7: Cash Flow Reconciliation 481
Note 8: Contingent Assets and Liabilities 481
Note 9: Remuneration of Auditors 481
Note 10: Financial Instruments 482
Note 11: Financial Assets Reconciliation 484
Note 12: Special Accounts 484
Note 13: Compensation and Debt Relief 485
Note 14: Reporting of Outcomes 485
Glossary of terms, abbreviations and acronyms 486
List of requirements 494
Index 498
A 498
B 499
C 499
D 502
E 502
F 504
G 504
H 505
I 506
J 507
K 507
L 507
M 508
N 509
O 510
P 510
Q 511
R 512
S 513
T 514
U 515
V 515
W 515
Y 516
Back cover (L to R) 517
Front cover (L to R) 517
Outcome images 517