PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS 2012-13

RESOURCES, ENERGY AND TOURISM PORTFOLIO Part C: Agency Additional Estimates Statements — Agency

EXPLANATIONS OF ADDITIONAL ESTIMATES 2012-13

ii © Commonwealth of Australia 2013

ISBN 978-1-922106-54-4

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PARLIAMENT HOUSE CANBERRA 2600 President of the Senate Australian Senate Parliament House CANBERRA ACT 2600

Speaker House of Representatives Parliament House CANBERRA ACT 2600

Dear Mr President Dear Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the 2012-13 Additional Estimates for the Resources, Energy and Tourism 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

Martin Ferguson

iv Abbreviations and conventions The following notations may be used:

NEC/nec not elsewhere classified - nil .. not zero, but rounded to zero na not applicable (unless otherwise specified) nfp not for publication $m $ million Figures in tables and in the text may be rounded.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 the Chief Financial Officer in the Department of Resources, Energy and Tourism on (02) 6276 1000.

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

v USER GUIDE TO THE PORTFOLIO ADDITIONAL ESTIMATE 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 (No. 3 and No. 4) 2012-13. 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 2012-13 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.

vii User Guide

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 This section details the total resources available to an agency, Overview and the impact of any measures since Budget, and impact on Resources Appropriation Bills No. 3 and No. 4.

Section 2: Revisions to This section details changes to Government outcomes and/or Outcomes and Planned changes to the planned performance of agency programs. Performance

Section 3: Explanatory This section contains updated explanatory tables on special Tables and Budgeted account flows and staffing levels and revisions to the budgeted Financial Statements financial statements.

Glossary Explains key terms relevant to the Portfolio.

Index (Optional) Alphabetical guide to the Statements

viii CONTENTS

Portfolio Overview...... 3

Department of Resources, Energy and Tourism...... 9 National Offshore Petroleum Safety and Environmental Management Authority...... 39

Glossary...... 55

ix PORTFOLIO OVERVIEW PORTFOLIO OVERVIEW

The Hon Martin Ferguson AM MP is the Minister for Resources and Energy and the Minister for Tourism. The Minister is responsible for improving the strength, competitiveness and sustainability of the resources, energy and tourism sectors. These sectors are key drivers of the Australian economy underpinning the competitiveness of regions, industries and business across the economy and are at the forefront of the economic and environmental challenges facing Australia.

The portfolio structure and outcomes are consistent with those reported during the 2012-13 Budget, with the Australian Solar Institute ceasing operations in 2012-13 and functions incorporated into the Australian Renewable Energy Agency by 1 January 2013.

The additional funding through Appropriation Bills No. 3 and No. 4 will assist the portfolio in meeting its responsibilities and achieving its outcomes.

2 Portfolio Overview

Figure 1: Resources, Energy and Tourism portfolio structure and outcomes

Portfolio Minister The Hon Martin Ferguson AM MP

Minister for Resources and Energy Minister for Tourism

Department of Resources, Energy and Tourism Portfolio Secretary Mr Drew Clarke Outcome 1: The improved strength, competitiveness and sustainability of the resources, energy and tourism industries to enhance Australia's prosperity through implementation of government policy and programs.

Geoscience Australia Tourism Australia Chief Executive Officer: Managing Director: Dr Chris Pigram Mr Andrew McEvoy Outcome 1: Informed government, Outcome 1: Increase demand for industry and community decisions on the Australia as a destination, strengthen the economic, social and environmental travel distribution system, and contribute management of the nation's natural to the development of a sustainable resources through enabling access to tourism industry through consumer geoscientific and spatial information. marketing, trade development and research activities.

National Offshore Petroleum Safety Australian Solar Institute and Environmental Management Executive Director: Authority Mr Mark Twidell Chief Executive Officer Outcome 1: Encourage innovation and Ms Jane Cutler cost effective developments in solar Outcome 1: Promote and enforce the energy technologies to accelerate effective management of risks to the commercial deployment through workforce, the environment and the knowledge building and collaborative structural integrity of facilities, wells and research, development and support for well-related equipment of the Australian Australian industries and research offshore petroleum and greenhouse gas institutions. storage industries through regulatory oversight.

Australian Renewable Energy Agency Chief Executive Officer: Mr Ivor Frischknecht Outcome 1: Support improvements in the competitiveness of renewable energy and related technologies and the supply of renewables energy by administering financial assistance, developing analysis and advice about and sharing information and knowledge with regard to, renewable energy and related technologies.

3 Portfolio Overview

Portfolio resources

Table 1 shows for those agencies reporting in the Portfolio Additional Estimates Statements the additional resources provided to the portfolio in the 2012-13 budget year, by agency.

Table 1: Portfolio resources 2012-13

Appropriation Receipts Total Bill No. 3 Bill No. 4 Special $m $m $m $m $m

Department of Resources,

Energy and Tourism

Administered appropriations Departmental appropriations 26,080 5,217 - - 31,297 Total: 31,297

National Offshore Petroleum Safety and Environmental Management Authority

Departmental appropriations 3,794 - - - 3,794 Total: 3,794

Portfolio total 35,091

Resources available within portfolio: 35,091

4 AGENCY ADDITIONAL ESTIMATES STATEMENTS

Department of the Resources, Energy and Tourism...... 9

National Offshore Petroleum Safety and Environmental Management Authority...... 39 DEPARTMENT OF RESOURCES, ENERGY AND TOURISM

Section 1: Agency overview and resources...... 11 1.1 Strategic Direction...... 11 1.2 Agency Resource Statement...... 11 1.3 Agency Measures table...... 15 1.4 Additional Estimates and variations...... 17 1.5 Breakdown of Additional Estimates by appropriation bill...... 19

Section 2: Revisions to agency Outcomes and Planned Performance. .20 2.1 Resources and performance information...... 20

Section 3: Explanatory tables and budgeted financial statements...... 27 3.1 Explanatory tables...... 27 3.2 Budgeted financial statements...... 29

6 DEPARTMENT OF RESOURCES, ENERGY AND TOURISM

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION

The purpose of the Department of Resources, Energy and Tourism (the Department) is to enhance Australia’s economic prosperity by improving the productivity, competitiveness, security and sustainability of the resources, energy and tourism sectors through the provision of high quality policy advice and program delivery services for the Australian Government.

Additional appropriations of $31.3 million are being provided to the Department to: continue implementation of the Department’s outcomes; and implement new initiatives within the Department’s three programs:

 Resources related initiatives and management program;

 Energy related initiatives and management program; and

 Tourism related initiatives and management program.

Other variations to the current appropriation funding have been undertaken to align funding profiles with the Department’s priorities.

1.2 AGENCY RESOURCE STATEMENT

The Agency Resource Statement details the resourcing for the Department of Resources, Energy and Tourism at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2012-13 Budget year, including variations through Appropriation Bills No.3 and No.4, special appropriations and special accounts.

7 Agency Additional Estimates Statements — RET

Table 1.1: Department of Resources, Energy and Tourism resource statement — Additional estimates for 2012-13 as at Additional Estimates February 2013 Estimate as Proposed Total Total at Budget + Additional = estimate Available Estimate at Additional appropriation Estimates 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Ordinary annual services1 Departmental appropriation Prior year departmental 13,126 - 13,126 16,489 appropriation2 Departmental appropriation3 81,680 26,080 107,760 114,045 s31 Relevant agency receipts4 2,000 - 2,000 2,000 Total 96,806 26,080 122,886 132,534

Administered expenses Outcome 15 318,779 (87,878) 230,901 986,741 Payments to CAC Act bodies 130,178 (522) 129,656 136,821 Total 448,957 (88,400) 360,557 1,123,562

Total ordinary annual services A 545,763 (62,320) 483,443 1,256,096

Departmental non-operating Equity injections6 - 5,217 5,217 6,841 Total - 5,217 5,217 6,841 Administered non-operating Administered assets and - - - 5,300 liabilities Total - - - 5,300

Total other services B - 5,217 5,217 12,141

Total available annual appropriations 545,763 (57,103) 488,660 1,268,237

Special appropriations Special appropriations limited by criteria/entitlement - Offshore Petroleum and Greenhouse Gas Storage Act 1,500 - 1,500 1,801 2006 - Ashmore Cartier Islands - Offshore Petroleum and Greenhouse Gas Storage Act 15,000 (15,000) - 17,000 2006 - Offshore Petroleum Fees - Offshore Minerals Act 1994 - 60 - 60 60 Offshore Minerals Act (Fees) Special appropriations limited by amount

-Australian Renewable Energy 292,565 (50,000) 242,565 - Agency Act 2011 Total special appropriations C 309,125 (65,000) 244,125 18,861

Total appropriations excluding Special Accounts 854,888 (122,103) 732,785 1,287,098

8 Agency Additional Estimates Statements — RET

Table 1.1: Department of Resources, Energy and Tourism resource statement — Additional estimates for 2012-13 as at Additional Estimates February 2013 (continued)

Estimate as Proposed Total Total at Budget + Additional = estimate available Estimate at Additional appropriation Estimates 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Special Accounts Opening balance7 912,409 (272,539) 639,870 583,286 Appropriation receipts 272,339 (216,681) 55,658 528,739 Non-appropriation receipts to Special Accounts 17,883 (2,973) 14,910 13,536 Total Special Account D 1,202,631 (492,193) 710,438 1,125,561

Total resourcing A+B+C+D 2,057,519 (614,296) 1,443,223 2,412,659 Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations (695,082) 267,203 (427,879) (665,560) Total net resourcing for the 1,362,437 (347,093) 1,015,344 1,747,198 Department

1. Appropriation Act (No.1) 2012-13 & Appropriation Bill (No.3) 2012-13. 2. Estimated adjusted balance carried from previous year for annual appropriations. 3. Includes an amount of $0m in 2012-13 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. Section 31 Relevant Agency receipts — estimate. 5. Includes an amount of $0m in 2012-13 for the Administered Capital Budget (refer to table 3.2.10 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. 6. Appropriation Act (No.2) 2012-13 & Appropriation Bill (No.4) 2012-13. 7. Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts). For further information on special accounts see Table 3.1.1.

Reader note: All figures are GST exclusive.

9 Agency Additional Estimates Statements — RET

Table 1.1: Department of Resources, Energy and Tourism resource statement — Additional estimates for 2012-13 as at Additional Estimates February 2013 (continued) Third Party Payments from and on behalf of other agencies Estimate at Estimate at Budget Additional Estimates 2012-13 2012-13 $’000 $'000

Payments made to other agencies for the provision of services Tourism Australia 8,500 8,500

Payments made to CAC Act bodies within the Portfolio Tourism Australia Appropriation Bill 1 130,178 129,656 Australian Renewable Energy Agency Special Appropriation 292,565 242,565

10 Agency Additional Estimates Statements — RET

1.3 AGENCY MEASURES TABLE

Table 1.2 summarises new Government measures taken since the 2012-13 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Agency 2012-13 Measures since Budget Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Revenue measures

Offshore Petroleum Registration Fee Surplus Revenue3 1 Administered 79,700 - - - Total 79,700 - - -

Selective cash bidding for offshore petroleum exploration acreage establishment1 1 Administered - - 57,700 44,900 Total - - 57,700 44,900

Total revenue measures Administered 79,700 - 57,700 44,900 Total 79,700 - 57,700 44,900

Expense measures

Asia Marketing Fund - reduction in funding 3 Administered expenses - (1,500) (4,000) (7,000) Total - (1,500) (4,000) (7,000)

Advanced Lignite Demonstration Program - establishment 1 Administered expenses - - (19,000) 19,000 Total - - (19,000) 19,000

Low Emission Technology Demonstration Fund - reduction in funding 2 (100,000 Administered expenses - - - ) (100,000 Total - - - )

Australia in the Asian Century2 3 Administered expenses (999) (4,976) - - Departmental expenses 999 1,095 1,139 1,371 Total - (3,881) 1,139 1,371 Tourism Industry Regional Development Fund - establishment 3 Administered expenses 7,121 11,110 12,099 12,585 Departmental expenses 1,379 1,390 1,401 1,415

11 Agency Additional Estimates Statements — RET

Total 8,500 12,500 13,500 14,000

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Expense measures (continued)

Department of Resources, Energy and Tourism - departmental funding3 1,2,3 Departmental expenses 9,000 10,500 - - Total 9,000 10,500 - -

Selective cash bidding for offshore petroleum exploration acreage establishment3 1 Departmental expenses 457 15 16 16 Total 457 15 16 16

Offshore Petroleum Registration Fee Surplus Revenue3 1 Departmental expenses 14,022 - - - Total 14,022 - - - International Energy Agency Statistics reporting 1 Departmental expenses - 1,100 1,028 730 Total - 1,100 1,028 730 Supplementation for fringe benefits tax changes to the living-away-from- home-allowance 1,2,3 Departmental expenses 40 100 100 100 Total 40 100 100 100 Contract for closure program - cessation 2 Departmental expenses - - - - Total - - - - Energy Brix Australia Corporation - assistance 2 Departmental expenses - - - - Total - - - -

Prior year Supplementary Appropriation 1,2,3 Departmental expenses 5,217 - - - Total 5,217 - - -

Total expense measures Administered 6,122 4,634 (10,901) (75,415) Departmental 31,114 14,200 3,684 3,632 Total 37,236 18,834 (7,217) (71,783)

Prepared on a Government Financial Statistics (fiscal) basis Note 1 – There is also revenue of $57.7 million in 2016-17 Note 2 - There is also funding of $1.4 million in 2016-17. This measure is funded through a reduction in administered expenditure. Note 3 - Measure relates to a decision made post MYEFO.

12 Agency Additional Estimates Statements — RET

A decision taken but not yet announced of $1.5 million is not published in the above table.

13 Agency Additional Estimates Statements — RET

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The 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 2012-13 Budget in Appropriation Bills No.3 and No.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 2012-13 Budget Program 2012-13 2013-14 2014-15 2015-16 impacted $'000 $'000 $'000 $'000 Outcome 1 Increase in estimates (administered revenue) Offshore Petroleum Registration Fee Surplus 1 79,700 - - - Revenue Selective cash bidding for offshore petroleum 1 - - 57,700 44,900 exploration acreage establishment Increase in estimates (administered expenditure) Tourism Industry Regional Development Fund - 3 7,121 11,110 12,099 12,585 establishment Decrease in estimates (administered expenditure) Asia Marketing Fund - reduction in funding 3 - (1,500) (4,000) (7,000) Advanced Lignite Demonstration Program - 1 - - (19,000) 19,000 establishment Low Emission Technology Demonstration Fund (100,000 2 - - - - reduction in funding ) Australia in the Asian Century1 1,2 (999) (4,976) - - Net impact on estimates for Outcome 1 (administered) 85,822 4,634 46,799 30,515 Increase in estimates (departmental) Tourism Industry Regional Development Fund - 3 1,379 1,390 1,401 1,415 establishment Department of Resources, Energy and Tourism 1,2,3 9,000 10,500 - - - departmental funding Selective cash bidding for offshore petroleum 1 457 15 16 16 exploration acreage establishment Offshore Petroleum Registration Fee Surplus 1 14,022 - - - Revenue International Energy Agency Statistics reporting 2 - 1,100 1,028 730 Supplementation for fringe benefits tax changes 1,2,3 40 100 100 100 to the living-away-from-home-allowance Australia in the Asian Century1 1,2 999 1,095 1,139 1,371 Prior year Supplementary Appropriation 1,2,3 5,217 - - - Net impact on estimates for Outcome 1 (departmental) 31,114 14,200 3,684 3,632 Note 1 - There is also funding of $1.4 million in 2016-17. This measure is funded through a reduction in administered expenditure. A decision taken but not yet announced of $1.5 million is not published in the above table.

14 Agency Additional Estimates Statements — RET

Table 1.4: Additional estimates and variations to outcomes from other variations Program 2012-13 2013-14 2014-15 2015-16 impacted $'000 $'000 $'000 $'000 Outcome 1 Decrease in estimates (administered expenditure) National Low Emission Coal Initiative - movement of funds 1 (20,000) 20,000 - - Coal Mining Abatement - movement 1 (9,000) 9,000 - - of funds

Changes to price and wages indices 3 - (778) (1,043) (1,054) - payments to Tourism Australia

Savings - payments to CAC Act 3 (522) (412) (412) (412) agency - Tourism Australia

Decrease in estimates (administered special appropriation expenditure) ARENA - movement of funds 2 (50,000) 50,000 - -

Offshore Petroleum Fees decrease 1 (15,000) (15,000) (15,000) (15,000)

Net impact on estimates for Outcome 1 (administered) (94,522) 62,810 (16,455 ) (16,466)

Increase in estimates (departmental) DFAT devolution of utilities and 1,2 - 3 3 3 cleaning overseas posts Decrease in estimates (departmental) Changes to price and wages 1,2,3 - (431) (484 ) (493) indices Savings 1,2,3 (368) (364) (364) (364) Net impact on estimates for Outcome 1 (departmental) (368) (792) (845) (854)

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1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Department through Appropriation Bills No.3 and No.4.

Table 1.5: Appropriation Bill (No. 3) 2012-13 2011-12 2012-13 2012-13 Additional Reduced Available Budget Revised Estimates Estimates $'000 $'000 $'000 $'000 $'000 ADMINISTERED ITEMS Outcome 1 The improved strength, competitiveness and sustainability of the resources, 986,741 318,779 230,379 7,121 (95,521) energy and tourism industries to enhance Australia's prosperity through implementation of government policy and programs. Total 986,741 318,779 230,379 7,121 (95,521)

DEPARTMENTAL PROGRAMS Outcome 1 The improved strength, competitiveness and sustainability of the resources, 114,045 81,680 107,760 26,448 (368) energy and tourism industries to enhance Australia's prosperity through implementation of government policy and programs. Total 114,045 81,680 107,760 26,448 (368) Total administered and departmental 1,100,786 400,459 338,139 33,569 (95,889) Note 1: 2011-12 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Table 1.6: Appropriation Bill (No. 4) 2012-13

2011-12 2012-13 2012-13 Additional Reduced Available Budget Revised Estimates Estimates $'000 $'000 $'000 $'000 $'000

Non-operating Equity injections Equity injection 4,963 - - - - Prior year appropriation - - 5,217 5,217 - Total non-operating Department of Resources, Energy

and Tourism Total 4,963 - 5,217 5,217 - Note 1: 2011-12 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year.

16 Agency Additional Estimates Statements — RET

Section 2: Revisions to Outcomes and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

OUTCOME 1

Outcome 1 strategy There are no changes to the Outcome statement or program structure from reported during the 2012-13 Budget.

Table 2.1 Budgeted Expenses and Resources for Outcome 1 2011-12 2012-13 Outcome 1: The improved strength, competitiveness and Actual Revised sustainability of the resources, energy and tourism industries expenses estimated to enhance Australia's prosperity through implementation of government policy and programs. expenses $'000 $'000

Program 1: Resources related initiatives and management

Administered expenses Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 167,453 208,795 Special appropriations 5,078 1,560 Special Accounts 45,412 115,832 Departmental expenses Departmental appropriation 1 52,510 48,076 Expenses not requiring appropriation in the Budget year 2 3,897 8,787

Total for Program 1 274,350 383,050

Program 2: Energy related initiatives and management Administered expenses Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 272,214 10,770 Special appropriations - 242,565 Special Accounts 61,392 1,485 Departmental expenses Departmental appropriation 1 47,223 38,941 Special Accounts 7,019 7,334 Expenses not requiring appropriation in the Budget year 2 1,018 155

Total for Program 2 388,866 301,250

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Table 2.1 Budgeted Expenses and Resources for Outcome 1 (continued)

2011-12 2012-13

Actual Revised Outcome 1: The improved strength, competitiveness and sustainability of the resources, energy and tourism industries expenses estimated to enhance Australia's prosperity through implementation of government policy and programs. expenses

$'000 $'000

Program 3: Tourism related initiatives and management

Administered expenses

Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 9,087 23,980

Special appropriations - -

Payments to CAC Act agencies 136,821 129,656

Departmental expenses

Departmental appropriation 1 22,516 22,743

Special Accounts 1,058 1,312

Expenses not requiring appropriation in the Budget year 2 426 65

Total for Program 3 169,908 177,756

Outcome 1 Totals by appropriation type

Administered Expenses

Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 448,754 243,545

18 Agency Additional Estimates Statements — RET

Special appropriations 5,078 244,125

Special Accounts 106,804 117,317

Payments to CAC Act agencies 136,821 129,656

Departmental expenses

Departmental appropriation 1 122,249 109,760

Special Accounts 8,077 8,646

Expenses not requiring appropriation in the Budget year 2 5,341 9,007

Total expenses for Outcome 1 833,124 862,056

2011-12 2012-13

Average Staffing Level (number) 551 441

1 Departmental Appropriation combines "Ordinary annual services (Appropriation Act No. 1 & Bill No. 3)" and "Revenue from independent sources (s31)".

2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, expenses related to contributions from industry and Audit Fees.

19 Agency Additional Estimates Statements — RET

Program 1: Resources related initiatives and management

Program 1 Objective

Program objective • The program objective is consistent with that reported during the 2012-13 Budget process.

Program 1 Deliverables

The following deliverables are in addition to those reported during the 2012-13 Budget: • Develop a Carbon Capture and Storage roadmap in conjunction with the National Carbon Capture and Storage Council.

• Effective conduct of the Australian Extractive Industries Transparency Initiative Pilot.

• Finalise the establishment of National Offshore Petroleum Titles Administrator and National Offshore Petroleum Safety and Environmental Management Authority including implementation of ICT systems; completion of the National Electronic Approval Tracking System; and creation of the National Offshore Petroleum Data and Core Repository.

Program 1 Key Performance Indicators

There are no changes to the Key Performance Indicators from those reported during the 2012-13 Budget.

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Program 1 Expenses

2011-12 2012-13 2013-14 2014-15 2015-16

Actual Revised Forward Forward Forward

budget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000

Annual administered expenses:

40 40 40 40 40 - Petroleum Royalties Administration 115,278 170,500 173,600 200,300 200,300 - Ethanol Production Subsidy 25,000 - - - - - Ethanol Production Grants - Global Carbon Capture and Storage 35, Institute 25,000 000 20,000 20,000 2,500 941 2,000 - - - - Radioactive Waste Management 173 239 239 239 239 - Maralinga Maintenance 21 16 - - - - Rum Jungle 1,000 1,000 1,000 1,000 - - Syntroleum Depreciation 56 - - - - - Other expenditure

Special Account Expenses:

Clean Energy Initiative Special Account:1

6,775 64,961 102,220 278,839 450,400 - Carbon Capture and Storage Flagships 25,612 30,871 65,591 81,423 19,000 - National Low Emissions Coal Initiative 13,025 20,000 15,000 5,650 -

- National CO2 Infrastructure Plan

21 Agency Additional Estimates Statements — RET

Expenditure in special account not requiring appropriation: 2,823 8,632 8,632 8,632 8,632 - National Offshore Petroleum Titles Administrator2

Special Appropriations: - Offshore Petroleum and Greenhouse Gas Storage Act 2006 - Offshore 4,927 - - - - Petroleum Fees

- Offshore Petroleum and Greenhouse Gas Storage Act 2006 - Ashmore and 139 1,500 1,500 1,500 1,500 Cartier Islands

12 60 60 60 60 - Offshore Minerals Act 1994 (Fees)

Annual departmental expenses:

- Program support 52,510 48,076 34,542 25,140 22,432

- Expenditure not requiring 1,018 155 155 155 155 appropriation3

383,0 Total program expenses 274,350 50 422,579 622,978 705,258 1 The expenses from this special account are funded by administered appropriations. 2 The expenses from this special account are funded by industry.

3 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense,

Amortisation Expense and Audit Fees.

Program 2: Energy related initiatives and management

Program 2 Objective

Program Objectives • The program objective is consistent with that reported during the 2012-13 Budget process.

Program 2 Expenses

2011-12 2012-13 2013-14 2014-15 2015-16

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Actual Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: - Asia Pacific Partnership on Clean 2,273 360 - - - Development and Climate - Smart Grid, Smart City 50,997 9,410 - - - - Connecting Renewables to the Grid - - 25,000 50,000 55,000 - Coal Mining Abatement Technology - 1,000 24,000 14,000 14,000 Support Package - Coal Sector Jobs Package 218,800 - 229,900 241,500 276,000 - Energy Market Reform - Direct 144 - - - - Commonwealth Reform Special Account Expenses: Clean Energy Initiative Special Account:1 - Australian Centre for Renewable 23,842 - - - - Energy2 - Australian Solar Institute2 32,665 - - - - - Solar Flagships2 3,760 - - - - - Low Emission Technology - - 20,000 40,000 - Demonstration Fund Standing Council on Energy and 1,125 1,485 1,100 1,100 - Resources Special Account

Special Appropriations: - Australian Renewable Energy Agency - 242,565 394,904 436,640 321,810 Act 2011 - Payments to ARENA

Annual departmental expenses: - Program support 47,223 38,941 34,356 30,018 26,978 - Energy Special Account 7,019 7,334 7,334 7,334 7,334 - Expenditure not requiring 1,018 155 155 155 155 appropriation3 Total program expenses 388,866 301,250 736,749 820,747 701,277

1 The expenses from this special account are funded by administered appropriations from RET.

2 These programs will become the responsibility of ARENA on 1 July 2012.

3 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense,

Amortisation Expense and Audit Fees.

Program 2 Deliverables

The following deliverables supplement those reported during the 2012-13 Budget: • Provision of secretariat support to the Standing Council on Energy and Resources and progression of the Council’s work program, including the Energy Market Reform package endorsed by the Council of Australian Governments on 7

23 Agency Additional Estimates Statements — RET

December 2012.

• Administer the Energy Efficiency Opportunity Act 2006 and deliver the Energy Efficiency Opportunities (EEO) program to large energy users and the expansion of EEO to electricity generators.

Program 2 Key Performance Indicators The following Key Performance Indicators adjust those reported during the 2012-13 Budget to reflect the program outcomes.

2011-12 2012-13 2013-14 2014-15 2015-16 Key Performance Actual Revised Forward Forward Forward Indicators Target year 1 year 2 year 3

Delivery of the Energy Efficiency Opportunities program to large energy users: - Produce a report on results of Jun-13 the first five year cycle

Coal Mine Abatement Technology and Support Program (CMATSP) developed and launched - Select projects for funding under the program May-13

24 Agency Additional Estimates Statements — RET

Program 3: Tourism related initiatives and management

Program 3 Objective

Program objective • The program objective is consistent with that reported during the 2012-13 Budget process.

Program 3 Expenses

2011-12 2012-13 2013-14 2014-15 2015-16

Actual Revised Forward Forward Forward

budget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000

Annual administered expenses:

- T-QUAL Grants 9,037 8,309 7,604 9,600 -

- National Tourism Accreditation 50 50 50 - - Framework - Establishment

- Asia Marketing Fund - 8,500 12,500 13,500 14,000

- Tourism Industry Regional - 7,121 11,110 12,099 12,585 Development Fund

- Payment to CAC Act body1 136,821 129,656 130,970 131,631 133,090

Annual departmental expenses:

- Program support 22,516 22,743 23,701 19,077 17,017

- Special Account 1,058 1,312 - - -

- Expenditure not requiring 426 65 65 65 65 appropriation2

177, Total program expenses 169,908 756 186,000 185,972 176,757 1 Represents payments made to Tourism Australia.

25 Agency Additional Estimates Statements — RET

2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense,

Amortisation Expense and Audit Fees.

Program 3 Deliverables

The following deliverable is in addition to those reported during the 2012-13 Budget • Establishment of the Tourism Industry Regional Development Fund (TIRF) program, including the delivery of the first round of TIRF grants.

26 Agency Additional Estimates Statements — RET

Program 3 Key Performance Indicators The following Key Performance Indicators are additional to those reported in the 2012-13 Budget.

2011-12 2012-13 2013-14 2014-15 2015-16 Key Performance Actual Revised Forward Forward Forward Indicators Target year 1 year 2 year 3

Tourism Industry Regional Development Fund (TIRF) Grants Program

- Completion rate for TIRF Grant projects in accordance with executed Funding Agreements 90% between the Recipient and the Commonwealth.

- Additional investment in TIRF Grant projects, including matching 110% or funding of recipients, will be at least more 110% of grant funding awarded. - Completed grant projects to have met the recipient-specific KPIs 90% or outlined in executed Funding more Agreements. - Demonstrated increase in visitor numbers, revenue and employment by recipient businesses, benchmarked against the relevant Tourism Region, measured during Increase the period between the submission of grant application, and 12 months following the completion of the grant project.

- Grants recipients eligible for T- QUAL accreditation to be T-QUAL accredited by completion of their 60% funded project.

27 Agency Additional Estimates Statements — RET

Section 3: Explanatory tables and budgeted financial statements

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 2012-13 PB Statements is Table 3.1.2.

Table 3.1.1: Estimates of Special Account flows Opening Closing balance Receipts Payments Adjustments balance 2012-13 2012-13 2012-13 2012-13 2012-13 2011-12 2011-12 2011-12 2011-12 2011-12 Outcome $'000 $'000 $'000 $'000 $'000

1 61,324 3,152 - - 64,476 Ranger Rehabilitation (A) 58,184 3,140 - - 61,324

Standing Council on 1 10,089 6,601 (7,252) - 9,438 Resources and Energy Special Account (D) 20,518 7,315 (7,765) (9,979) 10,089

Services for Other Entities 1 1,692 1,312 (2,000) 1,004 and Trust Moneys (D) 1,012 1,919 (1,239) - 1,692

1 566,740 50,871 (115,832) 501,779 Clean Energy Initiative

Special Account (A) 503,572 (111,419) - 566,740 174,587

National Offshore Petroleum 25 8,632 (8,632) 25 Titles Administrator Special - 2,848 (2,823) - 25 Account (A)

Total Special Accounts 2012-13 Budget estimate 639,870 70,568 (133,716) - 576,722

Total Special Accounts

2011-12 actual 583,286 (123,246) (9,979) 639,870 189,809

(A) = Administered (D) = Departmental

28 Agency Additional Estimates Statements — RET

29 Agency Additional Estimates Statements — RET

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements Changes to the financial statements primarily reflect decisions made at after the 2012-13 Budget and updated estimates to revenue programs.

3.2.2 Budgeted financial statements Departmental financial statements Table 3.2.1: Budgeted departmental Comprehensive Income Statement (Showing Net Cost of Services) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000

EXPENSES Employee benefits 72,753 65,953 62,729 46,042 30,696 Suppliers 54,070 52,658 37,408 35,732 43,270 Depreciation and amortisation 1,415 170 170 170 170 Other Expenses 4,552 - - - - 118,78 100,30 81,94 74,13 Total expenses 132,790 1 7 4 6

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 12,383 10,646 9,334 9,334 9,334 Total own-source revenue 12,383 10,646 9,334 9,334 9,334

Gains Other 744 205 205 205 205 Total gains 744 205 205 205 205 Total own-source income

Net cost of (contribution by) (107,930 services (119,663) ) (90,768) (72,405) (64,597)

Revenue from Government 114,534 107,760 90,598 72,235 64,427

Surplus (Deficit) attributable to the Australian Government (5,129) (170) (170) (170) (170)

Total comprehensive income (loss) attributable to the Australian Government (5,129) (170) (170) (170) (170) Prepared on Australian Accounting Standards basis.

30 Agency Additional Estimates Statements — RET

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 442 442 442 442 442 Trade and other receivables 32,389 28,417 28,417 28,417 28,417 Total financial assets 32,831 28,859 28,859 28,859 28,859

Non-financial assets Land and buildings 5,147 5,147 5,147 5,147 5,147 Property, plant and equipment 1,175 1,005 835 665 495 Intangibles 1,310 1,310 1,310 1,310 1,310 Other non-financial assets 597 597 597 597 597 Total non-financial assets 8,229 8,059 7,889 7,719 7,549 Assets held for sale Total assets 41,060 36,918 36,748 36,578 36,408

LIABILITIES Payables Suppliers 127 127 127 127 127 Other payables 16,749 10,988 10,988 10,988 10,988 Total payables 16,876 11,115 11,115 11,115 11,115

Provisions Employee provisions 19,395 21,184 21,184 21,184 21,184 Other 2,288 2,288 2,288 2,288 2,288 Total provisions 21,683 23,472 23,472 23,472 23,472

Total liabilities 38,559 34,587 34,587 34,587 34,587

Net assets 2,501 2,331 2,161 1,991 1,821 EQUITY Parent entity interest Contributed equity 9,362 9,362 9,362 9,362 9,362 Reserves Retained surplus (6,861) (7,031) (7,201) (7,371) (7,541) (accumulated deficit) Total parent entity interest 2,501 2,331 2,161 1,991 1,821

Total Equity 2,501 2,331 2,161 1,991 1,821 Prepared on Australian Accounting Standards basis.

31 Agency Additional Estimates Statements — RET

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2012-13) Retained Contributed Total earnings equity/ equity capital $'000 $'000 $'000 Opening balance as at 1 July 2012 Balance carried forward from previous period (6,861) 9,362 2,501 Adjusted opening balance (6,861) 9,362 2,501

Comprehensive income Surplus (deficit) for the period (170) - (170) Total comprehensive income (170) - (170)

Attributable to the Australian Government (170) - (170) Estimated closing balance as at 30 June 2013 (7,031) 9,362 2,331 Closing balance attributable to the Australian Government (7,031) 9,362 2,331 Prepared on Australian Accounting Standards basis

32 Agency Additional Estimates Statements — RET

Table 3.2.4: Budgeted departmental statement of cash flows (as at 30 June) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 119,561 111,732 90,615 72,235 64,427 Sale of goods and rendering of 12,520 10,646 9,334 9,334 9,334 services Other 22 - - - - Total cash received 132,103 122,378 99,949 81,569 73,761

Cash used Employees 65,686 69,925 63,950 46,042 30,696 Suppliers 63,334 52,453 35,999 35,527 43,065 Other 4,465 - - - - Total cash used 133,485 122,378 99,949 81,569 73,761 Net cash from (used by) operating activities (1,382) - - - -

INVESTING ACTIVITIES Cash used Purchase of property, plant, 4,380 - - - - equipment and intangibles Total cash used 4,380 - - - - Net cash from (used by) investing activities (4,380) - - - - FINANCING ACTIVITIES Cash received Contributed equity 5,646 - - - - Total cash received 5,646 - - - -

Net cash from (used by) financing activities 5,646 - - - - Net increase (decrease) in cash held (116) - - - - Cash and cash equivalents at the beginning of the reporting period 558 442 442 442 442 Cash and cash equivalents at the end of the reporting period 442 442 442 442 442 Prepared on Australian Accounting Standards basis.

33 Agency Additional Estimates Statements — RET

Table 3.2.5: Statement of Asset Movements (2012-13) Other Buildings property, Computer Total plant and software and equipment intangibles $'000 $'000 $'000 $'000 As at 1 July 2012 Gross book value 5,749 2,756 2,385 10,890 Accumulated depreciation/amortisation and impairment (602) (1,581) (1,075) (3,258) Opening net book balance 5,147 1,175 1,310 7,632

Other movements Depreciation/amortisation expense - (170) - (170)

As at 30 June 2013 Gross book value 5,749 2,756 2,385 10,890 Accumulated depreciation/amortisation and impairment (602) (1,751) (1,075) (3,428) Closing net book balance 5,147 1,005 1,310 7,462 Prepared on Australian Accounting Standards basis.

34 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) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Suppliers 14,951 12,240 13,839 14,839 14,239 Subsidies and Grants 545,008 349,182 695,676 955,011 1,031,385 Depreciation and amortisation 1,000 1,000 1,000 1,000 1,000 Payments to CAC Bodies 139,321 372,221 525,874 568,271 454,900 Other expenses 56 - - - - Total expenses administered on behalf of Government 700,336 734,643 1,236,389 1,539,121 1,501,524

LESS: OWN-SOURCE INCOME Own-source revenue Taxation revenue Other taxes 171 171 171 171 171 Total taxation revenue 171 171 171 171 171

Non-taxation revenue Supply of goods and services 11,401 - - - - Fees from regulatory services 24,861 79,900 3,300 - - Interest 4,161 4,199 4,476 4,772 5,087 Dividends 31,200 31,200 24,700 24,700 26,000 Industry Contributions 2,848 8,632 8,632 8,632 8,632 Royalties 1,626,591 1,664,175 1,580,969 1,557,476 1,506,938 Other revenue 414 3,160 3,160 3,160 3,160 Total non-taxation revenue 1,701,476 1,791,266 1,625,237 1,598,740 1,549,817 Total own-source revenues administered on behalf of Government 1,701,647 1,791,437 1,625,408 1,598,911 1,549,988

Total own-sourced income administered on behalf of Government 1,701,647 1,791,437 1,625,408 1,598,911 1,549,988

Net Cost of (contribution by) services Surplus (Deficit) 1,001,311 1,056,794 389,019 59,790 48,464

Total comprehensive income (loss) 1,001,311 1,056,794 389,019 59,790 48,464 Prepared on Australian Accounting Standards basis.

35 Agency Additional Estimates Statements — RET

Table3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Trade and other Receivables 92,978 83,482 79,006 74,234 69,148 Other investments 715,221 715,221 715,221 715,221 715,221 Other financial assets 170,305 170,305 170,305 170,305 170,305 Total financial assets 978,504 969,008 964,532 959,760 954,674

Non-financial assets Intangibles 5,343 4,343 3,343 2,343 1,343 Total non-financial assets 5,343 4,343 3,343 2,343 1,343

Total assets administered on behalf of Government 983,847 973,351 967,875 962,103 956,017

LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Grants 5,614 5,614 5,614 5,614 5,614 Other payables 671 671 671 671 671 Total payables 6,285 6,285 6,285 6,285 6,285 Total liabilities administered on behalf of Government 6,285 6,285 6,285 6,285 6,285

Net assets/(liabilities) 977,562 967,066 961,590 955,818 949,732 Prepared on Australian Accounting Standards basis.

36 Agency Additional Estimates Statements — RET

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Supply of goods and services 5,082 - - - - Fees from regulatory services 24,861 79,900 3,300 - - Dividends 31,200 31,200 24,700 24,700 26,000 Taxes 171 171 171 171 171 Royalties 1,622,917 1,675,967 1,592,761 1,569,268 1,518,730 Other 434 5,300 - - - Total cash received 1,684,665 1,792,538 1,620,932 1,594,139 1,544,901

Cash used Grants and subsidies 551,690 356,556 724,840 985,175 1,045,049 Suppliers 14,782 12,240 13,839 14,839 14,239 Net GST paid 13,962 - - - - Employees 2,888 - - - - Payments to CAC Bodies 139,321 372,221 525,874 568,271 454,900 Other Total cash used 722,643 733,643 1,235,389 1,538,121 1,500,524 Net cash from (used by) operating activities 962,022 1,058,895 385,543 56,018 44,377

INVESTING ACTIVITIES Cash used Purchase of property, plant, 2,260 - - - - equipment and intangibles Total cash used 2,260 - - - - Net cash from (used by) investing activities (2,260) - - - -

Net increase (decrease) in cash held 959,762 1,051,521 356,379 25,854 30,713 Cash and cash equivalents at beginning of reporting period - - - - - Cash from Official Public Account: 752,532 694,990 1,151,844 1,430,417 1,481,524 Cash to Official Public Account for: 1,712,294 1,746,511 1,508,223 1,456,271 1,512,237 Cash and cash equivalents at end of reporting period - - - - - Prepared on Australian Accounting Standards basis.

37 Agency Additional Estimates Statements — RET

Table 3.2.11: Statement of Administered Asset Movements (2012-13) Computer Total software and intangibles $'000 $'000 As at 1 July 2012 Gross book value 17,260 17,260 Accumulated depreciation/amortisation and impairment (11,917) (11,917) Opening net book balance 5,343 5,343 Other movements Depreciation/amortisation expense (1,000) (1,000)

As at 30 June 2013 Gross book value 17,260 17,260

Accumulated depreciation/amortisation and impairment (12,917) (12,917) Closing net book balance 4,343 4,343

Notes to the financial statements The Department’s budget statements have been prepared on an accrual accounting basis in accordance with:

 The Finance Minister’s Orders; and

 Australian Accounting Standards and interpretations issued by the Australian Accounting Standards Board.

38 39 NATIONAL OFFSHORE PETROLEUM SAFETY AND ENVIRONMENTAL MANAGEMENT AUTHORITY

Section 1: Agency overview and resources...... 41 1.1 Strategic Direction...... 41 1.2 Agency Resource Statement...... 43 1.3 Agency Measures table...... 44 1.4 Additional Estimates and variations...... 44 1.5 Breakdown of Additional Estimates by appropriation bill...... 45

Section 2: Revisions to agency Outcomes and Planned Performance. .46 2.1 Resources and performance information...... 46

Section 3: Explanatory tables and budgeted financial statements...... 48 3.1 Explanatory tables...... 48 3.2 Budgeted financial statements...... 49

40 NATIONAL OFFSHORE PETROLEUM SAFETY AND ENVIRONMENTAL MANAGEMENT AUTHORITY

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) regulates the safety, integrity and environmental management of the Australian offshore petroleum and greenhouse gas storage industries through the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

These industries continue to experience a period of unprecedented growth together with the challenges of major new technologies, the ageing of existing facilities and increasing demand for skilled and experienced people. Unless carefully managed these challenges have the potential to significantly impact on safety and environmental management performance.

In recent years, a series of high profile incidents in Australia and overseas have led to loss of life and damage to the environment. Subsequent investigations and inquiries have highlighted the importance of competency and operating discipline within the industry being overseen by a competent, well resourced and independent regulator.

NOPSEMA’s legislated functions include:

 To promote the occupational health and safety (OHS) of persons engaged in offshore petroleum operations or offshore greenhouse gas storage operations;  To develop and implement effective monitoring and enforcement strategies to secure compliance by persons with their OHS obligations under the Act and the regulations, obligations under a structural integrity law and obligations under an environmental management law;  To investigate accidents, occurrences and circumstances that: – affect or have the potential to affect, the OHS of persons engaged in offshore petroleum operations or offshore greenhouse gas storage operations; – involve or may involve deficiencies in the structural integrity of facilities, wells or well-related equipment located in Commonwealth waters; and – involve or may involve deficiencies in offshore petroleum or offshore greenhouse gas storage environmental management in connection with operations in Commonwealth waters.

41 Agency Additional Estimates Statements — NOPSEMA

 To advise persons on OHS matters relating to offshore petroleum operations or offshore greenhouse gas storage operations, structural integrity of facilities, wells or well-related equipment, and offshore petroleum or greenhouse gas storage environmental management;  To make reports and recommendations to Ministers; and  To cooperate with a whole of government approach. As part of the Government’s response to the report of the Montara Commission of Inquiry, the Government extended the functions of the National Offshore Petroleum Safety Authority (NOPSA) to include the oversight of non-OHS structural integrity of facilities, wells and well-related equipment, and environmental management. Consequently, NOPSA was renamed the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) on 1 January 2012.

NOPSEMA will continue to focus on its primary functions of promoting and securing compliance and improvement by dutyholders through monitoring, enforcement and proactive engagement with stakeholders to reduce risks to the workforce, the environment and the structural integrity of facilities, wells and well-related equipment of the Australian offshore petroleum and greenhouse gas storage industries.

In particular, NOPSEMA’s work priorities will include:

 Emphasising the importance of industry leadership to exercise a high level of managerial control around the precursors to major accident events;  Recruiting to the approved establishment level to enhance NOPSEMA’s capability as a Regulator;  Assessing safety cases, applications for authorisation to undertake well activities, Well Operations Management Plans and Environment Plans;  Inspecting, investigating and, where appropriate, taking enforcement action;  Engaging with operators, titleholders and other duty holders to foster best practice, highlighting lessons learned, and supporting the industries’ safety and environment representatives;  Publishing policies and guidance notes to inform dutyholders on the regulatory requirements;  Responding to matters arising from the recommendations of inquiries and reviews; and  Upgrading NOPSEMA’s systems to maintain consistency of operating procedures and provide stakeholder access to relevant information.

42 Agency Additional Estimates Statements — NOPSEMA

1.2 AGENCY RESOURCE STATEMENT

The Agency Resources Statement details the resourcing for NOPSEMA at Additional Estimates. Table 1.1 outlines the total resourcing available for the 2012-13 Budget year, including variations through Appropriation Bills No.3 and special accounts.

Resources are provided by industry, through safety case levies, well levies and environment plan levies which are determined by industry activity level and are estimated to be $26.764 million. In addition, an appropriation of $3.794 million is received from government through a new measure to fund the finalisation of the establishment of NOPSEMA. The total resources for 2012-13 are estimated to be $30.758 million which includes an interest equivalency payment estimated at $0.200 million. This is also received from government as NOPSEMA has no investment powers.

Table 1.1: NOPSEMA resource statement — Additional estimates for 2012-13 as at Additional Estimates February 2013

Estimate as Proposed Total Total

+ = at Budget Additional estimate available

Estimate at Additional appropriation

Estimates

2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000

Special Accounts

Opening balance 2,571 935 3,506 1,480

Appropriation receipts 200 3,794 3,994 123

Non-appropriation receipts to

Special Accounts 26,371 - 26,371 27,602

Total Special Account 29,142 4,729 34,264 29,205

43 Agency Additional Estimates Statements — NOPSEMA

Total resourcing 29,142 4,729 34,264 29,205

Total net resourcing for NOPSEMA 29,142 4,729 34,264 29,205

Note: All figures are GST exclusive

44 Agency Additional Estimates Statements — NOPSEMA

1.3 AGENCY MEASURES TABLE

Table 1.2 summarises new Government measures taken since the 2012-13 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Agency 2012-13 Measures since Budget

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Expense measures Offshore Petroleum Registration 1 Fee Surplus Revenue

Departmental expenses 3,794 - - - Total 3,794 - - - Total expense measures Departmental 3,794 - - - Total 3,794 - - -

Prepared on a Government Financial Statistics (fiscal) basis

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for NOPSEMA at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2012-13 Budget in Appropriation Bills No.3 and No.4.

Table 1.3: Additional estimates and variations to outcomes from measures since 2012-13 Budget

Program 2012-13 2013-14 2014-15 2015-16 impacted $'000 $'000 $'000 $'000 Outcome 1

Increase in estimates (departmental) Offshore Petroleum Registration Fee Surplus 1 3,794 - - - Revenue Net impact on estimates for Outcome 1 (departmental) 3,794 - - -

45 Agency Additional Estimates Statements — NOPSEMA

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for NOPSEMA through Appropriation Bills No.3 and No.4.

Table 1.4: Appropriation Bill (No. 3) 2012-13

2011-12 2012-13 2012-13 Additional Reduced Available Budget Revised Estimates Estimates $'000 $'000 $'000 $'000 $'000

DEPARTMENTAL PROGRAMS Outcome 1 Promote and enforce the effective management of risks to the workforce, the environment and the structural integrity of facilities, wells 123 200 3,994 3,794 - and well-related equipment of the Australian offshore petroleum and greenhouse gas storage industries through regulatory oversight. Total 123 200 3,994 3,794 -

Total departmental 123 200 3,994 3,794 -

46 Agency Additional Estimates Statements — NOPSEMA

Section 2: Revisions to Outcomes and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

OUTCOME 1

Outcome 1 strategy No change to the outcome strategy reported in the 2012-13 budget.

Table 2.1 Budgeted Expenses and Resources for Outcome 1 Outcome 1: Promote and enforce the effective management of 2011-12 2012-13 risks to the workforce, the environment and the structural Actual Revised integrity of facilities, wells and well-related equipment of the expenses estimated Australian offshore petroleum and greenhouse gas storage expenses industries through regulatory oversight. $'000 $'000

Program 1: Regulatory oversight of Safety Cases, Well Operations Management Plans and Environment Plans coupled with effective monitoring, investigation and enforcement.

Departmental expenses Departmental appropriation 1 22,455 29,705 Expenses not requiring appropriation in the Budget year 1,222 1,053

Total for Program 1 23,677 30,758

Outcome 1 Totals by appropriation type Departmental expenses Departmental appropriation 1 22,455 29,705 Expenses not requiring appropriation in the Budget year 1,222 1,053

Total expenses for Outcome 1 23,677 30,758

2011-12 2012-13 Average Staffing Level (number) 91 100

Note 1 - Departmental Appropriation combines "Ordinary annual services (Appropriation Act No. 1 & Bill No. 3)" and "Revenue from independent sources (s31)".

47 Agency Additional Estimates Statements — NOPSEMA

Program 1 Expenses

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: Employee benefits 14,086 22,591 22,997 24,103 25,309 Supplier expenses 8,369 7,114 4,030 4,251 4,545 Expenses not requiring appropriation in the Budget year1 1,222 1,053 1,023 796 396 Total program expenses 23,677 30,758 28,050 29,150 30,250 Note 1: Expenses not requiring appropriation in the Budget year is made up of Depreciation and amortisation expense.

Program 1 Deliverables

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward Deliverables budget year 1 year 2 year 3 Ensuring compliance and promotion of safety and environmental management within the offshore petroleum and greenhouse gas storage industries 23,677 30,758 28,050 29,150 30,250

Program 1 Key Performance Indicators

2011-12 2012-13 2013-14 2014-15 2015-16 Key Performance Actual Revised Forward Forward Forward Indicators Target year 1 year 2 year 3

Total resources for key performance indicators 23,677 30,758 28,050 29,150 30,250

48 Agency Additional Estimates Statements — NOPSEMA

Section 3: Explanatory tables and budgeted financial statements

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 NOPSEMA. The corresponding table in the 2012-13 PB Statements is Table 3.1.2.

Table 3.1.1: Estimates of Special Account Flows and Balances

Opening Closing balance Receipts Payments Adjustments balance 2012-13 2012-13 2012-13 2012-13 2012-13 2011-12 2011-12 2011-12 2011-12 2011-12 Outcome $'000 $'000 $'000 $'000 $'000 3,50 30,36 (29,1 4,69 National Offshore Petroleum Safety and 6 5 78) - 3 Environmental Management Authority Special Account - section 682 Offshore Petroleum and Greenhouse Gas Storage Act 2006 (D) 1 1,480 27,725 (25,699) - 3,506

Total Special Accounts 2012-13 Budget estimate 3,506 30,365 (29,178) - 4,693

Total Special Accounts 2011-12 actual 1,480 27,725 (25,699) - 3,506

(D) = Departmental

49 Agency Additional Estimates Statements — NOPSEMA

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

The budget figures for 2012-13 were updated to reflect the additional establishment funding of $3.794 million, received from government for the finalisation of the implementation of NOPSEMA.

3.2.2 Budgeted financial statements Departmental financial statements

Table 3.2.1: Budgeted departmental Comprehensive Income Statement (Showing Net Cost of Services) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 14,086 22,591 22,997 24,103 25,309 Suppliers 8,369 7,114 4,030 4,251 4,545 Depreciation and amortisation 1,222 1,053 1,023 796 396 28,05 30,25 Total expenses 23,677 30,758 0 29,150 0

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 20,233 26,764 27,900 29,000 30,100 Other 8,517 - - - - 27,90 30,10 Total own-source income 28,750 26,764 0 29,000 0

Net cost of (contribution by) services 5,073 (3,994) (150) (150) (150)

Revenue from Government - 3,994 150 150 150

Surplus (Deficit) attributable to the Australian Government 5,073 - - - -

Prepared on Australian Accounting Standards basis.

50 Agency Additional Estimates Statements — NOPSEMA

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 3,506 4,693 5,698 6,495 6,937 Trade and other receivables 4,940 5,134 5,112 5,112 5,112 Total financial assets 8,446 9,827 10,810 11,607 12,049

Non-financial assets Property, plant and equipment 5,716 5,163 4,640 4,344 4,448 Other non-financial assets 93 93 93 93 93 Total non-financial assets 5,809 5,256 4,733 4,437 4,541 Total assets 14,255 15,083 15,543 16,044 16,590

LIABILITIES Payables Suppliers 360 2,260 2,011 1,767 1,530 Other payables 40 40 40 40 40 Total payables 400 2,300 2,051 1,807 1,570

Provisions Employee provisions 2,880 3,531 4,215 4,932 5,685 Other provisions 2,166 443 468 496 527 Total provisions 5,046 3,974 4,683 5,428 6,212 Total liabilities 5,446 6,274 6,734 7,235 7,782

Net assets 8,809 8,809 8,809 8,809 8,808

EQUITY Parent entity interest Contributed equity 896 896 896 896 896 Retained surplus 7,913 7,913 7,913 7,913 7,912 (accumulated deficit) Total parent entity interest 8,809 8,809 8,809 8,809 8,808 Total Equity 8,809 8,809 8,809 8,809 8,808 Prepared on Australian Accounting Standards basis.

51 Agency Additional Estimates Statements — NOPSEMA

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2012-13) Retained Asset Other Contributed Total earnings revaluation reserves equity/ equity reserve capital $'000 $'000 $'000 $'000 $'000 Opening balance as at 1 July 2012 Balance carried forward from previous period 7,913 - - 896 8,809 Adjusted opening balance 7,913 - - 896 8,809

Surplus (deficit) for the period - - - - - Estimated closing balance as at 30 June 2013 7,913 - - 896 8,809 Prepared on Australian Accounting Standards basis

Table 3.2.4: Budgeted departmental statement of cash flows (as at 30 June) Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 123 3,994 150 150 150 Sale of goods and rendering of 27,602 26,371 27,772 28,850 29,950 services Total cash received 27,725 30,365 27,922 29,000 30,100

Cash used Employees 13,287 21,940 22,313 23,386 24,556 Suppliers 6,869 6,738 4,103 4,317 4,602 Total cash used 20,156 28,678 26,416 27,703 29,158 Net cash from (used by) operating activities 7,569 1,687 1,506 1,297 942

INVESTING ACTIVITIES

Cash used Purchase of property, plant, equipment and intangibles 5,543 500 500 500 500 Total cash used (5,543) (500) (500) (500) (500) Net cash from (used by) investing activities (5,543) (500) (500) (500) (500)

52 Agency Additional Estimates Statements — NOPSEMA

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued)

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 Net increase (decrease) in cash held 2,026 1,187 1,006 797 442 Cash and cash equivalents at the beginning of the reporting period 1,480 3,506 4,692 5,698 6,495 Cash and cash equivalents at the end of the reporting period 3,506 4,693 5,698 6,495 6,937 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Capital Budget Statement — Departmental Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000

PURCHASE OF NON-FINANCIAL ASSETS Funded internally from departmental resources 5,543 500 500 500 500 5,54 50 50 50 50 TOTAL AMOUNT SPENT 3 0 0 0 0

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE 5,54 50 50 50 50 Total accrual purchases 3 0 0 0 0 Total cash used to acquire assets 5,543 500 500 500 500 Consistent with information contained in the Statement of Asset Movements and the Budgeted Statement of Cash Flows.

53 Agency Additional Estimates Statement — NOPSEMA

Table 3.2.6: Statement of Asset Movements (2012-13)

Other property, Total plant and equipment $'000 $'000 As at 1 July 2012 Gross book value 8,888 8,888 Accumulated depreciation/amortisation and impairment (3,172) (3,172) Opening net book balance 5,716 5,716

CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase - other 500 500 Total additions 500 500

Other movements Depreciation/amortisation expense (1,053) (1,053)

As at 30 June 2013 Gross book value 9,388 9,388 Accumulated depreciation/amortisation and impairment (4,225) (4,225) Closing net book balance 5,163 5,163 Prepared on Australian Accounting Standards basis.

Notes to the financial statements NOPSEMA’s budget statements have been prepared on an accrual basis, in accordance with the Finance Minister’s Orders and Australian Accounting Standards.

The analysis of budgeted financial statements provides an overview of the key elements that could significantly impact NOPSEMA’s results.

54 GLOSSARY

Term Meaning Accrual Accounting System of accounting where items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Accumulated Depreciation The aggregate depreciation recorded for a particular depreciating asset.

Administrative The functions and activities of the Government are Arrangements Order administered in accordance with AAOs, issued from (AAOs) time to time by the Government and signed by the Governor-General. The AAOs establish the principal matters or government outcomes to be dealt with by each Department of State, and the Acts of Parliament to be administered by each Minister.

Administered Item Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the agency and any unspent appropriation is returned to the Consolidated Revenue Fund at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right.

Additional Estimates Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

Appropriation An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the Consolidated Revenue Fund). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under Special Appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

55 Index

Term Meaning Annual Appropriation Acts of Parliament, which provide appropriation for the government's activities during a specific financial year. Three appropriation Bills are introduced into Parliament in May and comprise the Budget. Further supplementary Bills are introduced later in the financial year as part of the Additional Estimates process. The Parliamentary Departments have their own Appropriation Bills.

Capital expenditure Expenditure by an agency on capital projects, for example purchasing a building.

Consolidated Revenue The principal operating fund from which money is Fund (CRF) drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government forms one consolidated revenue fund from which appropriation are made for the purposes of the Australian Government.

Departmental Item Resources (assets, liabilities, revenues and expenses) that agency Chief Executive Officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or passage of time.

Estimated Actual Details the current year’s estimated full final figures as Expenses included in the Budget documentation. As the Budget is released in May each year, but the financial year does not close off until 30 June, the current year numbers that are used for comparison with Budget amounts can only be estimates.

Equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

56 Index

Term Meaning Expense Expenses represent the full costs of an activity, that is, the total value of all the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of the entity. Expenses include cash items such as salary payments as well as expenses that have been incurred, such as accruing employee entitlements that will be paid in the future.

Fair value Valuation methodology: The amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

Measure A new policy or savings decision of the Government with financial impacts. Such proposals are normally made in the context of the annual Budget process.

Operating result Equals revenue less expenses.

Outcomes The Government's objectives in each portfolio area. Outcomes are desired results, impacts or consequences for the Australian community as influenced by the actions of the Australian Government. Actual outcomes are assessments of the end-results or impacts actually achieved.

Portfolio A Minister’s area of responsibility as a member of Cabinet. A portfolio consists of a Department of State (a.k.a the Portfolio Department) and a number of agencies with similar general objectives and outcomes.

Price One of the three key efficiency indicators. The amount the government or the community pays for the delivery of agreed outcomes.

Quality One of the three key efficiency indicators. Relates to the characteristics by which customers or stakeholders judge an organisation, product or service. Assessment of quality involves use of information gathered from interested parties to identify differences between user's expectations and experiences.

57 Index

Term Meaning Quantity One of the three key efficiency indicators. Examples include: the size of an output; count or volume measures; how many or how much.

Revenue Total value of resources earned or received to cover the production of goods and services.

Special Accounts Balances existing within the Consolidated Revenue Fund (CRF) that are supported by standing appropriations (Financial Management and Accountability (FMA) Act 1997, ss.20 and 21). Special accounts allow money in the CRF to be acknowledged as set-aside (hypothecated) for a particular purpose. Amounts credited to a Special Account may only be spent for the purposes of the Special Account. Special Accounts can only be established by a written determination of the Finance Minister (s.20 FMA Act) or through an Act of Parliament (referred to in s.21 of the FMA Act).

Special Appropriations An amount of money appropriated by a particular Act of (including Standing Parliament for a specific purpose and number of years. Appropriations) For special appropriations the authority to withdraw funds from the Consolidated Revenue Fund does not generally cease at the end of the financial year.

Standing appropriations are a sub-category consisting of ongoing special appropriations — the amount appropriated will depend on circumstances specified in the legislation.

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