Australian Trade Commission

Trade Commission Australian 01 Annual Report 2014–15 Report Annual

austrade.gov.au

2014–15AUSTRALIAN TRADE COMMISSION

Part XX / Subtile. Section Title. Internal Page Concepts 1 a AUSTRADE AT A GLANCE

Who are we? Our staff

The Australian Trade Commission (Austrade) At 30 June 2015, contributes to Australia’s economic prosperity Austrade employed by helping Australian businesses, education 1,045 staff, 69 per cent institutions, tourism operators, governments and citizens of whom were employed in as they: client-focused operations in ›› develop international markets and promote Australia and overseas. Staff international education turnover was 7.2 per cent and the ›› win productive foreign direct investment gender balance was 56 per cent female and 44 per cent male. ›› strengthen Australia’s tourism industry ›› seek consular and passport services.

What we do Our network

Austrade promotes Australian exports At 30 June 2015, Austrade and attracts investment into Australia had 79 overseas offices in by generating market information and 47 different markets, and insights, promoting Australian capabilities, making 17 of those offices also provided connections through an extensive global network of consular services on behalf of the contacts, leveraging the ‘badge of government’ offshore, Australian Government. Within providing quality advice and services to exporters and Australia, Austrade had 10 offices, investors, and developing policy. Austrade also has complemented by a further 27 offices responsibility for policies and programmes to strengthen managed through Austrade’s Australia’s tourism sector. TradeStart network.

Our outcomes

OUTCOME 1 OUTCOME 2 Contribute to Australia’s economic prosperity The protection and welfare of by promoting Australia’s export and other Australians abroad through international economic interests through the provision timely and responsive consular and of information, advice and services to business, passport services in specific locations associations, institutions and government. overseas.

Performance reporting

Austrade’s success in achieving its outcomes is measured against the deliverables and key performance indicators detailed in the 2014–15 Portfolio Budget Statements for the Foreign Affairs and Trade portfolio. Results are summarised in Part 2 of this report, starting on page 15.

b Australian Trade Commission Annual Report 2014–15 Cover photo: Anzac Bridge, Sydney. The dot graphic represents Austrade’s network. HIGHLIGHTS 2014–15 01 Provided value to Australian businesses Strengthened Australia’s tourism industry Austrade’s Service Improvement Study found Austrade helped attract foreign direct investment its net promoter score is very strong at +33, up into tourism infrastructure, including through five from +25 in the previous year, with 80 per cent major tourism projects, progressing more than of clients saying Austrade made a positive $2 billion worth of development that will support contribution to their business, and 78 per cent 12,000 jobs. Austrade also helped shape the new saying they’d achieved a commercial outcome as trial of 10-year visitor visas for Chinese tourists, a result of working with Austrade. See page 41. advanced reforms to working holiday visas, and delivered seven tourism employment plans in key Promoted the new North Asia free ‘hot spot’ regions experiencing acute labour and trade agreements skills pressures. See page 68. In partnership with the Department of Foreign Affairs and Trade, Austrade began promoting Supported Australian businesses through the benefits of the new North Asia free trade minister-led business missions and events agreements, helping Australian businesses Austrade delivered results for Australian to understand how they can fully exploit the businesses through minister-led business opportunities that the new agreements provide. missions and at business events around the See page 39. world, including Australia Business Week in India, the largest ever Australian business event to take Strengthened Australia’s capacity to attract place in India. See page 84. foreign investment Austrade organised 14 minister-led missions this Austrade appointed five senior investment year, involving 517 Australian companies and 650 specialists from the private sector, adding to registered Australian delegates. See page 103. Australia’s capacity to attract foreign investment. They work in close partnership with Austrade’s Provided for the long-term growth of the domestic and overseas networks, as well as state education and training sector and territory governments, to win productive Austrade initiated a long-term market foreign direct investment for Australia. See development plan for the education and training page 65. sector, Australian International Education 2025, to ensure the sector’s ongoing growth and Gained new investor visa responsibilities maximise its already valuable contribution to Austrade was given nomination responsibilities Australia’s economy, society and international for the Significant Investor Visa and a new standing. See page 50. Premium Investor Visa, working with the Department of Immigration and Border Protection Provided assistance through the Export on the design of the new complying investment Market Development Grants scheme framework for both programmes. See page 101. Austrade continued to administer the Export Market Development Grants scheme, which Opened a new Consulate-General in Houston, provides incentives for businesses to enter United States into export and grow to become sustainable In May 2015, Austrade opened an office in exporters, with nearly 3,200 exporters applying Houston, Texas, to attract productive foreign for grants in 2014–15, up 18 per cent on the direct investment to Australia, with a particular previous year. See page 116. focus on resources and energy, agribusiness, and advanced services, manufacturing and technologies. The new office also added to Austrade’s consular network. See page 92. Part XX / Subtile. Section Title. Internal Page Concepts 1 i Letter of transmittal

Office of the Chief Executive Officer

14 September 2015

The Hon Andrew Robb AO MP Minister for Trade and Investment Parliament House Canberra ACT 2600

Dear Minister

It is my pleasure to present to you the annual report of the Australian Trade Commission (Austrade) for the financial year 2014–15.

The report has been prepared pursuant to section 63 of the Public Service Act 1999 and in accordance with the Requirements for annual reports for departments, executive agencies and other non-corporate Commonwealth entities, as approved by the Joint Committee of Public Accounts and Audit on 25 June 2015.

The report reflects the matters that Austrade dealt with and the legislation it has administered in pursuing the outcomes of contributing to Australia’s economic prosperity and protecting the welfare of Australians abroad, at 30 June 2015.

I certify that I am satisfied that Austrade, in accordance with section 10 of the Public Governance, Performance and Accountability Rule 2014, has: ›› prepared appropriate fraud risk assessments and a fraud control plan for 2014–15 ›› put in place appropriate fraud prevention, detection, investigation and reporting mechanisms that meet the specific needs of Austrade ›› taken all reasonable measures to appropriately deal with fraud relating to Austrade. In presenting this annual report, I would also like to acknowledge the contributions of my colleagues in Austrade and the professionalism with which they carry out their work.

Yours sincerely

Bruce Gosper Chief Executive Officer

ii Australian Trade Commission Annual Report 2014–15 Australian Trade Commission Annual Report 2014–15

CONTENTS

Austrade at a glance inside cover PART 04 Highlights from 2014–15 i FINANCIAL STATEMENTS 169 Letter of transmittal ii Independent auditor’s report 170 Certification of financial statements 172 PART 01 AGENCY OVERVIEW 1 Notes to and forming part of the financial statements 183 About Austrade 2 Austrade’s network 4 PART 05 Organisational structure 6 APPENDIXES 243 Chief Executive Officer’s review 7 A Austrade and TradeStart locations in Australia, and TradeStart partners 244 Chief Finance Officer’s review 13 B Austrade’s Service Charter 246 PART 02 C Work health and safety 248 REPORT ON PERFORMANCE 15 D Financial and staffing resources 250 Reporting framework 16 E Ecologically sustainable development and Outcome 1 17 environmental performance 253 Programme 1.1: Promotion of Australia’s export F Advertising and market research 256 and other international economic interests 17 G List of requirements 262 Programme 1.2: Programmes to promote Australia’s export and other international economic interests 113 List of figures and tables 267 Abbreviations and acronyms 269 Outcome 2 127 Index 270 Programme 2.1: Consular and passport services 127 Auditors and other information 280 PART 03 Austrade locations 281 MANAGEMENT AND ACCOUNTABILITY 133 Corporate governance 134 Corporate planning 139 Risk management 141 Legislative framework and external scrutiny 143 Management of human resources 145 Financial management and business assurance 161 Managing knowledge and information 165

Contents iii A brief history of Austrade

1 2 3 4

5 6 7 8 1985-86 9 10 11 12 Austrade was established by the Australian Trade Commission Act 1985, and several export assistance agencies, including the Export Market Development 1990 Grants board, were consolidated into one organisation. Austrade’s board commissioned McKinsey & Company Austrade also provided consular services in certain to review the span of the agency’s activity and the locations overseas. Operations commenced on 6 January way it was organised in Australia and overseas. As a 1986 and Austrade was located in the Industry portfolio. result, Austrade was restructured to include a group of 10 executive general managers, with six of those 1991 positions each directing an overseas region. Austrade moved from the Industry portfolio to the Foreign Affairs and Trade portfolio. Its head office also 1992 moved from Canberra to Sydney. Austrade established its National Export Hotline— 13 28 78. 1996 Austrade was again restructured, with its 10 executive 1997-98 general managers reduced to seven. The Business Club Australia programme was launched. Eight TradeStart offices were also opened, 2001-02 extending Austrade’s export advisory services to regional Australia. The network has since been An agreement was negotiated between federal, state expanded and now includes 27 TradeStart offices and territory governments to cooperate in doubling located around Australia. the number of Australian companies exporting. 2006 2008 From 1 July 2006, Austrade operated under the Austrade was given responsibility for the promotion Financial Management and Accountability Act and attraction of productive foreign direct investment 1997 and its board of directors was replaced with an into Australia. executive management structure. Prior to 1 July 2006, Austrade operated under the Commonwealth 2010 Authorities and Companies Act 1997. Austrade was given responsibility for the international 2011 promotion of Australia’s education and training sector. A comprehensive review of Austrade resulted in a realignment of its network, with trade resources 2013 focused on Asian and growth and emerging markets Austrade was given responsibility for tourism policy, that provide the greatest opportunities for Australian programmes and research. businesses. Austrade’s investment resources were focused on more mature, capital-rich markets. 2014 Austrade was given nomination responsibilities for the Significant Investor Visa and a new Premium Investor Visa, with a new complying investment framework for both coming into effect from 1 July 2015.

iv Australian Trade Commission Annual Report 2014–15 01 01 PART AGENCY OVERVIEW

About Austrade 2

Austrade’s network 4

Organisational structure 6

Chief Executive Officer’s review 7

Chief Finance Officer’s review 13

Part XX / Subtile. Section Title. Internal Page Concepts 1 1 About Austrade

The Australian Trade Commission—Austrade— Attracting foreign direct investment to contributes to Australia’s economic prosperity Australia—Austrade provides coordinated by helping Australian businesses, education government assistance at a national level to institutions, tourism operators, governments promote, attract and facilitate productive foreign and citizens as they develop international direct investment into Australia. markets and promote international education; Strengthening Australia’s tourism industry— win productive foreign direct investment; Austrade develops policy, manages programmes strengthen Australia’s tourism industry; and and provides research to support Australia’s seek consular and passport services in certain tourism industry and to grow Australia’s tourism locations overseas. market share. Austrade achieves this by generating market Working across government—Austrade information and insight, promoting Australian delivers advice to the Australian Government on capabilities, developing policy, making its trade, tourism, international education and connections through an extensive global training, and investment policy agendas. network of contacts, leveraging the ‘badge of government’ offshore and providing quality Promoting Australia through online channels, advice and services. media and marketing—Austrade’s objectives are supported by its marketing activities, Austrade operates in a way that represents a including management of the nation branding good investment for the taxpayer and meets programme, Brand Australia, administration or exceeds all appropriate standards of of Austrade’s websites and business ethical behaviour. communications, as well as related market research and major events. Austrade’s functions Delivering consular services—Austrade provides Australian consular, passport and other Promoting Australian trade internationally— government services in designated overseas Austrade helps Australian companies to grow locations in support of the Department of their business in international markets, including Foreign Affairs and Trade’s consular network. through the administration of the Export Market Development Grants (EMDG) scheme and the Austrade’s network TradeStart network. At 30 June 2015, Austrade had 79 overseas Promoting Australian education offices in 47 different markets, and 17 of those internationally—Austrade promotes the offices also provided consular services on behalf Australian education and training sector in of the Australian Government. Within Australia, international markets and works with institutions Austrade had 10 offices, complemented by a and industry stakeholders to grow demand for further 27 offices managed through Austrade’s Australian education and training. TradeStart network. Austrade’s Australian and overseas locations are shown in Figure 1.

2 Australian Trade Commission Annual Report 2014–15 01

Austrade’s international network works with its In 2014–15, staff turnover was 7.2 per cent, onshore network to contribute to Australia’s compared with 13.5 per cent in 2013–14. The economic prosperity through its trade promotion gender balance was 56 per cent female and and investment attraction activities, promotion 44 per cent male. Further staffing information is of Australia as an international study destination, provided in Part 3 of this report (see page 145). and connecting tourism attraction and policy work across its wider spectrum of work. Financial report

In 2014–15, Austrade continued to maintain Legislation an effective financial management framework Austrade was established by the Australian and achieved improvements in practices and Trade Commission Act 1985. It is a non- processes. Further analysis of Austrade’s corporate Commonwealth entity under financial poition is provided in the Chief Finance the Public Governance, Performance and Officer’s review on page 13, and the financial Accountability Act 2013, and a statutory agency statements in Part 4 of this report. under the Public Service Act 1999. Austrade is part of the Foreign Affairs and Trade portfolio. Austrade’s Service Improvement Study

Each year, Austrade undertakes its Ministerial responsibility comprehensive Service Improvement Study to Austrade, through its CEO, reports to the assess its service delivery and identify areas Minister for Trade and Investment. The Hon for improvement in its services to Australian Andrew Robb AO MP held the position of organisations. The study is conducted Minister for Trade and Investment for the independently and results are delivered duration of the reporting period. quarterly.

In December 2014, the Prime Minister In 2014–15, the Service Improvement Study announced the appointment of the Hon Steven found that 89 per cent of Austrade’s clients were Ciobo MP to the position of Parliamentary satisfied with their dealings with the agency Secretary to the Minister for Trade and during the past 12 months. This result reflects Investment. He was sworn into the position the strong client service culture that exists within on 23 December 2014. Mr Ciobo also holds Austrade. For more information, see page 41. the position of Parliamentary Secretary to the Minister for Foreign Affairs.

Staffing

Austrade has a highly skilled, educated and multilingual workforce with a mix of private and public sector experience, from diverse cultural backgrounds. At 30 June 2015, Austrade employed 1,045 staff, 69 per cent of whom were employed in client-focused operations in Australia and overseas.

Part 01 / Agency overview. About Austrade 3 Austrade’s network

Figure 1: Austrade’s Australian and overseas locations at 30 June 2015

Stockholm Moscow London Frankfurt Warsaw Vancouver Prague Paris Ulaanbaatar Vladivostok Toronto Milan Madrid Shenyang Sapporo Chicago Beijing New York Istanbul Seoul San Francisco Qingdao Tokyo Washington DC Nanjing Islamabad Osaka Tel Aviv Houston Lahore Chandigarh Wuhan Kuwait Chengdu Shanghai Fukuoka Jaipur New Delhi Riyadh Dubai Guangzhou Ahmedabad Kunming Taipei Karachi Dhaka Abu Dhabi Kolkata Shenzhen Jeddah Mumbai Yangon Hanoi Hong Kong Mexico City Hyderabad Manila Bangalore Bangkok Kochi Chennai Ho Chi Minh City Accra Colombo Kuala Bogota Lumpur Bandar Seri Begawan Nairobi Singapore

Jakarta Darwin Port Moresby y Lima

Port Louis Suva Johannesburg Sao Paulo Brisbane ne Perth Canberra Newcastle stle Santiago Sydney Adelaide Wollongong Auckland Buenos Aires Melbourne

Hobart

Australian Government mission managed by the Department of Foreign Affairs and Trade (DFAT), and where Austrade also has an office Consulate or office where Austrade manages the official Australian Government presence Austrade office in Australia

4 Australian Trade Commission Annual Report 2014–15 01

Jakarta Darwin Port Moresby y Lima

Port Louis Suva Johannesburg Sao Paulo Brisbane ne Perth Canberra Newcastle stle Santiago Sydney Adelaide Wollongong Auckland Buenos Aires Melbourne

Hobart

Notes: A DFAT regional consular officer is based in Dubai. A DFAT policy officer is based in Houston. TradeStart locations are detailed in Appendix A.

Part 01 / Agency overview. Austrade’s network 5 Organisational structure

Figure 2: Austrade’s organisational structure at 30 June 2015

Chief Executive Officer

Bruce Gosper

Head of Strategy, Policy Coordination, Governance Chief Economist and Media Mark Thirlwell Lynne Ashpole

Executive Director Executive Director Chief Operating Officer International Tourism, Investment, Education Corporate Services Group Operations Group and Programmes Group Marcia Kimball Grame Barty (acting) Tim Beresford

Human Growth East Asian Tourism Established Resources and Emerging Growth Trade Markets Markets Markets

Security, Europe Investment Consular and Marketing, Online Property Israel Africa and Business ASEAN Japan Practice Latin America Korea Government, China Legal, Middle East Ministerial and Mongolia Procurement Hong Kong International New Zealand Russia and Fraud and Pacific Taiwan Education International South Asia North America Issues Turkey Export Market Development Finance Grants

IT Services

Note: Austrade’s management committees and subcommittees are detailed on page 138.

6 Australian Trade Commission Annual Report 2014–15 Chief Executive Officer’s review 01

and 78 per cent said they had achieved a commercial outcome as a result of working with us. I’m pleased with these results, which reflect the strong, commercially focused, client-service culture that exists within Austrade.

We led a national strategy to attract foreign direct investment...

Austrade leads a national, whole-of-government Bruce Gosper, Chief Executive Officer, Austrade. strategy to promote and facilitate foreign investment into Australia, focusing on investment Year in review that delivers the greatest value to the Australian Austrade has achieved a great deal in the past economy and contributes to economic prosperity. year. We’ve taken on some new responsibilities, The five agreed national priorities that Austrade and our clients continue to value our focuses on are agribusiness and food, resources services highly. We’ve started to promote the and energy, major infrastructure, tourism opportunities arising from the three new North infrastructure and advanced manufacturing, Asia free trade agreements and we’ve expanded services and technology. our work promoting Australia as a destination for productive foreign direct investment. Tourism ... with greater support through new senior maintains its place as one of Australia’s strongest investment specialists export sectors, and Austrade has continued its During the year, Austrade recruited five new work to strengthen the sector through policy, senior investment specialists from the private programmes and research. International student sector, adding to our capacity to attract foreign numbers continue to grow, and we’ve taken steps direct investment. The senior investment to ensure this trend continues. Austrade has specialists, who each bring deal-making and also continued to provide consular services to facilitation experience as well as deep expertise Australians in 17 locations overseas. in their respective sectors, work with investors and local jurisdictions to attract foreign direct Australian organisations valued investment into the national priority sectors. Austrade’s services

Austrade’s Service Improvement Study for … and through a new office extending our 2014–15 showed we are providing client services reach overseas that make an impact, and that satisfaction In March 2015, Austrade opened a new office with Austrade is high. The study found that in Houston, Texas. Houston is regarded as 89 per cent of Austrade’s clients were satisfied the global energy capital of the world, and with their dealings with us during the past provides an ideal location to focus on attracting 12 months, with Austrade’s net promoter score investment into the resources and energy sector, very strong at +33, up from +25 in the previous as well as in agribusiness and advanced services, year. Eighty per cent of our clients said Austrade manufacturing and technologies. made a positive contribution to their business,

Part 01 / Agency overview. Chief Executive Officer’s review 7 Austrade assumed new investor provides a framework for growth to help tourism visa responsibilities... businesses remain competitive in a dynamic global environment. In 2014–15, Austrade was given new investment- related responsibilities, with the Minister for Trade and Investment asking us to design a new We helped to develop the White Paper on Premium Investor Visa programme and develop Developing Northern Australia a new complying investment framework for that In June 2015, the Government released its White programme and for the Significant Investor Visa Paper on Developing Northern Australia: Our programme. These changes were part of a suite North, Our Future. It included several important of government initiatives to promote investment, tourism and investment attraction measures that innovation and commercialisation of Australian are expected to bring significant benefits to the ideas, research and development. Australian economy. Austrade contributed to the policy development process, providing advice … and we contributed to the Minister’s and insights from our international network and inaugural Investment Statement tourism policy team to the Department of the to Parliament Prime Minister and Cabinet and the Department of Immigration and Border Protection. We also provided significant input into the Minister for Trade and Investment’s inaugural We helped shape measures to assist the tourism annual Investment Statement, delivered sector, including the trial of 10-year visas for to Parliament on 23 September 2014. Chinese tourists, visa applications in Chinese, The statement highlighted the priority the and improvements to online visa application government has placed on attracting foreign services, which will help to give Australia an direct investment to support Australia’s edge in attracting visitors. Reforms to the continued economic growth. working holiday visa, which will increase the time visa holders can work with the same employer We worked to strengthen the tourism sector in Northern Australia, were also announced, as were changes that will allow access for some As well as working to attract foreign direct visa holders to a second-year visa to work in ‘in- investment into critical tourism infrastructure, demand’ industries in Northern Australia, such as Austrade helped strengthen the tourism sector tourism and hospitality. in other ways by developing policy, managing programmes and providing research to grow Austrade delivered major business missions Australia’s tourism market share. We worked to and events give the tourism sector a more effective voice in policy development and to improve policy This year, Austrade delivered results for settings in immigration, transport, employment Australian businesses through major business and the business environment to enable the missions and events in Australia and overseas, sector to prosper and grow. We also worked and we helped spread the word about Australian with state and territory governments, tourism capability among our major trading partners. organisations and the tourism industry to Australia Business Week in India in January implement the Tourism 2020 strategy, which

8 Australian Trade Commission Annual Report 2014–15 01

2015 was a major undertaking, pulling they can fully exploit the opportunities these together a programme of 125 events for 450 new agreements present. businesspeople across 14 sectors in eight Indian cities. Feedback from delegates and We assisted exporters through the Export government officials, in Australia and India, was Market Development Grants scheme overwhelmingly positive and our follow-up has Nearly 3,200 exporters applied for grants under revealed that 90 per cent of participants expect the Export Market Development Grants (EMDG) commercial outcomes in India in the next year. scheme in 2014–15, 18 per cent more than the We also delivered a substantial programme previous year. Those exporters represented of other ministerial business missions to the $3.8 billion of export sales and claimed Middle East, Asia, Canada, New Zealand and reimbursement of $165 million in international Latin America, to name a few. More than 1,000 promotional costs. With 2015–16 marking 40 companies have been represented on business years since the first EMDG claims were made in missions since early 2014, with more to come in 1975, the scheme has supported thousands of 2015–16. Australian small and medium-sized enterprises to enter new markets and grow their exports. The Match Australia programme, administered by Austrade, connected Australian businesses The EMDG team met a challenging workload in with global partners through major sporting the last 12 months and worked hard to improve events, including the Cricket World Cup and the the scheme’s administration, publishing online AFC Asian Cup. Match Australia is an important guides on the grants and claim processes, and tool to help promote Australia as a destination streamlining application processes. Austrade for foreign direct investment and is used to also supported the legislated review of the connect Australian exporters with overseas EMDG scheme, undertaken by Michael Lee. customers, delivering trade, investment and education opportunities. We worked towards a sustainable international education sector for Australia

We helped businesses understand the In 2014–15, Austrade initiated Australian benefits of new free trade agreements International Education 2025, a long-term 2014–15 was a landmark year for Australian market development plan for the education trade policy, with Australia signing free trade and training sector, and embarked on a agreements with three of Asia’s strongest comprehensive programme of consultation. economies—Japan, Korea and China. There have The plan will help sustainably increase the already been some tangible results for Australian supply of education and training services exporters (see pages 87 and 93). Working with to international students coming to study in the Department of Foreign Affairs and Trade, Australia and significantly increase offshore Austrade is promoting the benefits of those delivery of education and training services. agreements to the Australian community and to businesses in Australia and overseas, and is helping Australian businesses understand how

Part 01 / Agency overview. Chief Executive Officer’s review 9 Austrade also continued to promote Australian respectful, and value working in an organisation education internationally through the Future that contributes to the economic wellbeing of Unlimited brand and the Study in Australia Australia. In this work, the qualities that shine website, and subscribers to our Market through are a can-do attitude and strong Information Package also increased. culture of collaboration and teamwork. We continued to develop our staff and support Austrade contributed to the second a diverse workforce through a range of Australia’s International Business Survey initiatives, including the Trade Commissioner Development Programme, short-term overseas Austrade worked with Efic, the Export Council assignments, scholarships, programmes to of Australia and the University of Sydney build cross-cultural awareness and language on Australia’s International Business Survey capabilities, as well as inclusive leadership, 2015, the follow-up to last year’s first report. women’s mentoring, disability employment, and The survey provided new insights into the Indigenous programmes. market development activities of exporters, with respondents saying that visiting overseas customers in person was their most important Outlook for 2015–16 activity. Other important activities included attending overseas trade shows, using We already know that next year will be a big digital channels, online search marketing year. Recognising the value that Austrade’s and advertising, social media and selling via commercial acumen, its knowledge of and third-party e-commerce websites. The results extensive contacts in international markets, and confirmed that Austrade’s services to exporters its status as a government organisation can bring are valid and valuable and help Australian to Australian businesses, Austrade received new businesses succeed internationally. funding in the 2015–16 Budget. This included new resources to expand Austrade’s investment We provided consular services overseas facilitation work, to promote the new free trade agreements, and to ramp up the successful Austrade provided high-quality and responsive programme of major business events and consular support to 891 Australians overseas minister-led business missions. during 2014–15, including assistance to 180 people arrested or imprisoned overseas, A stronger focus on promoting Australia as a 120 people requiring medical assistance or foreign investment destination hospitalisation, and support to the families of 83 people who died overseas. Our consular staff Attracting foreign direct investment into processed 13,486 new passport applications Australia is a key part of the Government’s push and undertook 12,558 notarial acts. to lift Australia’s productivity and prosperity. With new budget funding next financial year, we will significantly expand our capacity to We continued to develop our staff attract and facilitate foreign investment in The results from the most recent APS employee each of the Government’s five priority areas, census show that Austrade employees and with new resources within Australia and in our managers are professional, engaged and international network.

10 Australian Trade Commission Annual Report 2014–15 01

As part of this work, we will attract and facilitate Tourism employs nearly a million Australians investment into Northern Australia, and organise directly and indirectly but, as the industry the Northern Australia Investment Forum in continues to grow, vacancies and skills gaps Darwin in November 2015. The forum will help are significant. We will work with colleagues build the business-to-business and business- across the Australian Government and state and to-government links essential to winning new territory agencies to improve the skills of the foreign investment and boosting reinvestment tourism and hospitality workforce, and effectively in Northern Australia. At the same time, we will promote the value of a career in the industry. seek other opportunities to support the North’s Austrade will also work with key industry development, including through working with partners and investors to attract significant the Department of Industry and Science on a investment in tourism accommodation and grants programme to help attract more foreign experiences. Facilitating this investment is investment to commercialise tropical medicine equally important—Austrade will help major research. tourism project investors navigate various From 1 July 2015, we will also gain responsibility Australian and state and territory government for nominating potential applicants for the approval processes and assist them with access Significant Investor Visa, along with the state and to relevant government programmes. territory governments, and we will also become the sole nominator for the new Premium Investor Continuing free trade agreement promotion Visa programme. and outreach To help the community and Australian Strengthening Australia’s tourism sector businesses understand the benefits of new With tourism a high-value export sector for North Asia free trade agreements, Austrade Australia, Austrade will continue advocating will expand the free trade agreement (FTA) across government, working to reduce barriers awareness programme, delivered in partnership to growth, developing policies and programmes with the Department of Foreign Affairs and to strengthen the sector, and making sure it can Trade. This work includes seminars delivered exploit opportunities through business missions by Austrade to provide practical advice to and Australia Week events. businesses around Australia, helping them to access the opportunities the new FTAs bring, Simple visa settings that encourage visitors along with grants and information kits for without compromising the integrity of Australia’s business organisations to help them extend this borders are critical to the success of the message even further. An advertising campaign Australian tourism industry. Austrade will build will help inform the community and businesses on the positive tourism outcomes in the White about the new FTAs. Paper on Developing Northern Australia, working with our colleagues in the Department of Expanding the Australia Week business Immigration and Border Protection to implement events to more overseas markets... key visitor visa and working holiday reforms, particularly the 10-year validity visitor visa for The Government has asked Austrade to Chinese tourists. deliver an expanded series of Australia Week trade missions and promotional events, to be

Part 01 / Agency overview. Chief Executive Officer’s review 11 organised biannually in China and India, with …and education and training institutions an Australia Week in China to be held next We will also continue to work with the year. There will also be a coordinated Australia education and training sector to capture the Week programme across ASEAN, with the first opportunities being created by the huge growth to be held in Indonesia in November 2015, and of global demand for education and training, a similar event in the United States in February and we will finalise and implement the new 2016. Along with other minister-led business Australian International Education 2025 market missions in international markets, which development plan. Austrade will continue to coordinate, these events will use the badge of government to Continuing to provide value to create opportunities for Australian businesses, Australian exporters and will continue to broaden engagement and business contacts in markets crucial to Austrade’s strategy and operations remain Australia’s economic prosperity. focused on providing maximum value to the Government and Australian businesses …and strengthening our overseas network and institutions. In a rapidly changing global economy, Austrade’s role in helping exporters Switzerland is a significant investment market exploit emerging opportunities in markets for Australia, and Austrade is set to expand around the world is becoming increasingly our network into the Swiss market in 2015–16, important. We know we help exporters opening a new office in Zurich to work across overcome the cultural and regulatory barriers the investment priority sectors. Austrade will they say are the biggest impediments to also open a new office in Boston, United States, successful exporting. With the Australian which will focus on investment attraction, economy shifting focus from the mining including for advanced manufacturing. investment boom, Austrade’s work in supporting exporters, helping to diversify Australia’s export Capturing opportunities for Australian sectors, and our increased focus on attracting businesses… productive foreign direct investment to Australia, Austrade will continue to identify and promote play an important role in growing the prosperity high-value export opportunities for Australian and productivity of the Australian economy. businesses and institutions, including Bruce Gosper those arising from the North Asia free trade Chief Executive Officer agreements. We will continue to help Australian exporters understand and access new paths to international markets through global value chains and e-commerce, and provide new export and investment opportunities through the expanded Match Australia programme.

12 Australian Trade Commission Annual Report 2014–15 Chief Finance Officer’s review 01

Year in review Outlook for 2015–16 Austrade continued to maintain an effective In the 2015–16 Budget, Austrade received new financial management framework and achieved departmental funding of $65.2 million across the improvements in practices and processes. forward estimates, with $20.2 million allocated These included steps to strengthen the to 2015–16. Austrade will work hard to ensure framework of onsite internal reviews of the that these activities are undertaken and fully controls, compliance and processes in offshore functional in accordance with the underlying and onshore locations, together with further funding agreements. enhancements to internal compliance processes The funding covers five new measures: and reporting. ›› free trade agreement outreach ($12.0 million) In 2014–15, the Government provided Austrade ›› strengthening investment ($5.9 million) with $182.5 million in funding for ordinary annual › the Match Australia programme ($1.1 million) services. Revenue from Government increased › by $5.7 million compared to 2013–14. This was ›› Australia Week events ($0.8 million) primarily due to the supplementation for foreign ›› developing Northern Australia ($0.4 million). exchange losses arising from the weakening Despite the new funding, the tight fiscal Australian dollar under the Government’s ‘no win, environment remains challenging. Austrade’s no loss’ provisions. Executive continues to explore options to In addition, Austrade received $26 million in identify the least impactful strategies available revenue from external sources, up $2.1 million to address a progressive reduction in base from 2013–14, primarily because of increased appropriation across the next few years. As a cost recovery from the provision of tourism result of the actions it will implement, Austrade research services to other government agencies. expects to continue to achieve its outcomes Expenditure was also higher this year in line with within its reduced base funding envelope. inflation, foreign exchange movements and the Robert O’Meara Government’s decisions. Austrade also received Chief Finance Officer $17.8 million to fund capital expenditure.

Administered expenditure was significantly higher in 2014–15 due to higher demand experienced by the Export Market Development Grants scheme.

Table 1 shows Austrade’s financial performance during the last four years, and the change in dollar value from 2013–14 to 2014–15 measured as a percentage (see page 14).

Part 01 / Agency overview. Chief Finance Officer’s review 13 Table 1: Austrade’s financial performance, 2011–12 to 2014–15

Departmental financial performance

2011–12 2012–13 2013–14 2014–15 Change from ($m) ($m) ($m) ($m) 2013–14 (%)

Revenue from government 167.2 160.0 176.8 182.5 3.2

Revenue from other sources 19.9 17.4 23.9 26.0 8.8

Gains 0.2 0.2 0.3 0.3 0.0

Total income 187.3 177.5 201.0 208.8 3.9

Employee expenses 108.9 110.5 124.6 129.3 3.8

Supplier expenses 75.1 63.6 71.3 74.6 4.6

Depreciation 17.6 17.5 18.1 19.2 6.1

Other expenses 0.3 0.6 0.8 1.1 37.5

Total expenses 201.9 192.2 214.8 224.3 4.4

Operating result (loss) (14.6) (14.7) (13.8) (15.5) 12.3

Financial assets A 57.4 59.8 46.7 53.6 14.8

Non-financial assets B 46.9 57.8 63.9 61.0 4.5

Liabilities C 49.2 54.1 53.1 51.6 2.8

Net assets = A+B–C 55.1 63.5 57.5 62.9 9.4

Administered financial performance

2011–12 2012–13 2013–14 2014–15 Change from ($m) ($m) ($m) ($m) 2013–14 (%)

EMDG scheme—grants expense 127.2 118.4 116.1 137.8 18.7

ABEP—grants expense – – 1.8 1.4 22.2

Total administered expenses(a) 135.1 125.9 124.6 146.0 17.2

EMDG = Export Market Development Grants ABEP = Asian Business Engagement Plan (a) Includes EMDG scheme administrative costs.

Notes: Some figures have been rounded. An increase in dollar value (revenue, expense, asset or liability) is shown as a positive percentage, and a decrease is shown as a negative percentage. The exception is the operating result, where a movement to a smaller loss shows as a positive percentage. (All positive percentage changes are shown as an upward arrow, and all negative percentage changes are shown as a downward arrow.)

14 Australian Trade Commission Annual Report 2014–15 02 PART REPORT ON PERFORMANCE

Reporting framework 16 Programme 1.2: Programmes to promote Australia’s export and other Outcome 1 17 international economic interests 113 Contribute to Australia’s economic Objective 113 prosperity by promoting Australia’s export and other international economic interests Deliverables and key performance through the provision of information, advice indicators 113 and services to business, associations, Export Market Development Grants scheme 116 institutions and government. Asian Business Engagement Plan 126 Programme 1.1: Promotion of Australia’s Outcome 2 127 export and other international economic The protection and welfare of Australians interests 17 abroad through timely and responsive Objectives 17 consular and passport services in specific Deliverables and key performance indicators 19 locations overseas. Promoting Australian trade internationally 32 Programme 2.1: Consular and passport Austrade’s services to Australian businesses 36 services 127 Promoting Australian education and Objective 127 training internationally 50 Deliverables and key performance Attracting productive foreign direct indicators 127 investment to Australia 57 Austrade-managed consulates 130 Strengthening Australia’s tourism industry 68 Austrade’s international network 83 Working across government 99 Promoting Australia through online channels, media and marketing 109 Reporting framework

Austrade operates under the Australian In this report, objectives, deliverables and key Government’s outcomes and programmes performance indicators, including a summary framework. Government outcomes are the of key results against Austrade’s performance intended results, impacts or consequences of framework, are provided at the start of actions by the Government on the Australian each programme. community. Government programmes are the Achievements are reported using a combination primary means by which agencies achieve their of methods, including charts, tables, narrative intended outcomes. discussion and case studies. The performance The 2014–15 Portfolio Budget Statements for reporting in this section is structured to align the Foreign Affairs and Trade portfolio identify with Austrade’s key functions and enables this the outcomes and associated deliverables and report to be easily read with Austrade’s 2014–15 key performance indicators that the Government Portfolio Budget Statements, its reporting uses to assess Austrade’s performance. framework and 2014–15 Corporate Plan.

In 2014–15, Austrade had two outcomes that were achieved through specific programmes. Its outcome and programme framework is shown in Figure 3.

Figure 3: Austrade’s outcome and programme reporting framework for 2014–15

Outcome 1 Outcome 2 Contribute to Australia’s economic prosperity by The protection and welfare of promoting Australia’s export and other international Australians abroad through economic interests through the provision of information, timely and responsive consular advice and services to business, associations, and passport services in institutions and government. specific locations overseas.

Programme 1.1 Programme 1.2 Programme 2.1

Promotion of Programmes to promote Consular and Australia’s export and Australia’s export and passport services other international other international economic interests economic interests

16 Australian Trade Commission Annual Report 2014–15 Outcome 1 02

Contribute to Australia’s economic prosperity by promoting Australia’s export and other international economic interests through the provision of information, advice and services to business, associations, institutions and government.

Programme 1.1: Promotion of Australia’s export and other international economic interests

Objectives ›› Identify international commercial opportunities ›› Work in partnership with Australian that match Australian comparative Government departments, and state advantage, particularly in agribusiness and and territory governments, to effectively food, services sectors (including tourism, influence foreign companies to make wealth management, and education and productive foreign investment into Australia, training), advanced manufacturing, mining particularly in the priority areas of food and and gas equipment technology and agribusiness, resources and energy, economic services, plus knowledge-based and other infrastructure, tourism infrastructure, innovative industries. and advanced manufacturing, services ›› Provide market information, specific services and technology. and advice to help businesses and institutions ›› Provide access to in-market networks and capitalise on opportunities that Austrade or decision-makers. others identify. ›› Lead the development and implementation ›› Contribute to the growth in demand for of tourism policy to maintain and promote a Australian education, the repositioning competitive tourism sector and facilitate the of Australia as a provider of high-quality growth of domestic and international tourism. education services to international students, ›› Provide tourism research and statistics to and the building of a sustainable Australian guide policy development and support international education sector by promoting business marketing and decision-making. Australia’s education sector overseas. ›› Effectively coordinate with other Australian Government agencies, and the states and territories.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 17 Programme 1.1 highlights

Trade ›› Austrade was given nomination responsibilities ›› 78 per cent of Australian organisations indicated for the Significant Investor Visa and a new that Austrade made a positive contribution to Premium Investor Visa. Austrade worked with their international business activities. the Department of Immigration and Border Protection on the design of the new complying › 75 per cent of Australian organisations indicated › investment framework for both programmes. that they achieved some form of commercial outcome as a result of working with Austrade. Tourism ›› Austrade worked with the Department of Foreign ›› In 2014, Austrade provided assistance to five Affairs and Trade to commence delivery of an major tourism projects, progressing more than Australia-wide free trade agreement seminar $2 billion worth of development that will support series that shows how companies can take 12,000 jobs. advantage of the trade agreements with Japan, ›› Austrade delivered seven tourism employment Korea and China. Relevant ministers and plans in key ‘hot spot’ regions that are Austrade’s senior trade commissioners have experiencing acute labour and skills pressures. given presentations at seminars held to date. ›› 81 per cent of tourism operators who use ›› Austrade published E-commerce in China: Austrade’s tourism research and information A guide for Australian business and began indicated that it helped support their marketing work on an outreach programme promoting and business decisions. e-commerce as a major new avenue to the China market. Business missions ›› Austrade supported Australian businesses Education and institutions at international business ›› Austrade began work on a long-term market events around the world, including Australia development plan for the education and Business Week in India. This year, Austrade training sector, called Australian International organised 14 minister-led missions involving Education 2025, to maximise the sector’s 517 Australian companies and 650 registered contribution to Australia’s economy, society and Australian delegates. international standing. ›› Austrade progressed its global value chains ›› Austrade continued to expand the reach of strategy, including through a minister-led the Future Unlimited brand, with 75 per cent aerospace mission to Singapore. A number of of students in the Top 200 CRICOS-registered participants are in advanced negotiations with organisations in Australia covered by Future their Singapore counterparts on taking part in Unlimited brand licences. their multinational supply chains.

Investment Online ›› Austrade shared 312 investor leads with state ›› There were more than 1.8 million visitors to and territory governments, including 91 site Austrade’s website, www.austrade.gov.au. visits by investors, and identified and qualified The website is a valuable source of information 39 investor-ready projects across Australia within and market intelligence to exporters, the Government’s five investment priority sectors. international students and overseas businesses ›› Austrade conducted 109 investment events, seeking suppliers. including 29 investor roundtables hosted by the Minister for Trade and Investment in 10 countries.

18 Australian Trade Commission Annual Report 2014–15 02

Deliverables and key performance indicators This section includes narrative discussion, Tables 2 and 3 summarise the results for case studies and other specific examples that programme 1.1 against the deliverables and key demonstrate Austrade’s performance against its performance indicators set out in Austrade’s deliverables and key performance indicators for 2014–15 Portfolio Budget Statements. the year.

Table 2: Summary of results for programme 1.1 deliverables

Deliverables

Australia’s export and other economic interests are maximised through a strategic approach. Austrade works with other Australian Government agencies, state and territory governments, and industry associations on the planning and execution of work programmes to provide a coordinated approach to assist Australian businesses to take advantage of identified opportunities and broaden Austrade’s impact and reach. In international markets, work programmes target international business opportunities that align with Australian industries’ comparative advantage. Within Australia, Austrade uses its unique commercial information and insight gathered within its international and domestic network to provide government with policy advice and economic information. Austrade’s deliverables are as follows:

Assist Australian businesses and institutions to access in-market opportunities identified by Austrade and others, through the provision of relevant and commercially useful information and market-related services and advice. Austrade provides the most value for Australian businesses and institutions in markets where language and business culture can be a barrier, where there is less openness of regulatory frameworks and transparency of business processes, where there are difficulties accessing distribution channels and commercial connections, and where the value of Austrade’s status as a government agency (the badge of government) is highest. Austrade’s trade facilitation resources are weighted towards Asian and other growth and emerging markets that have high potential, with a strong focus on international trade and education opportunities that align with the comparative advantage of Australian businesses; and when there is a clear role for government involvement. In Asia, Austrade promotes foreign direct investment only in countries with deep capital markets. In 2014–15, drawing on its commercial knowledge, its international network, PAGE and its relationships and connections with international customers, investors 32 and decision-makers, Austrade identified valuable trade and other international business opportunities for Australian businesses and institutions that matched their capability, capacity and interest.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 19 Deliverables These reliable international business opportunities came from sectors in which PAGE Australia has a comparative advantage and Austrade can add value in helping 36 businesses and institutions to access these opportunities. During the year, Austrade advised exporters on the most promising markets for their business, provided services—such as market research and identifying and establishing contact with potential partners, service providers and customers—and provided global value chain and e-commerce access advice and programmes. In 2014–15, Austrade worked with other countries to improve their regulatory and PAGE governance systems by learning from the Australian experience and promoting 86 Australian policy and regulatory frameworks as solutions to foreign governments. This also provided Australian exporters with a competitive edge, as shown in Austrade’s work in delivering Australian road safety expertise and services in India. Another example of how Austrade delivers opportunities to Australian businesses PAGE and institutions is through the management of international trade and business 103 missions led by ministers and the Prime Minister (see below).

Build linkages and networks with key decision-makers, buyers, investors and institutions, and facilitate access for Australian businesses and institutions in international markets. Austrade has deep networks of connections and contacts in overseas markets PAGE that include businesses, industry associations, governments and authorities. 83 Through these networks, Austrade identifies significant or emerging international business opportunities, and connects Australian businesses with them. Feedback from the businesses that Austrade works with indicates that they value the agency’s ability to help them gain access to these networks.

Assist and facilitate Australian businesses’ and institutions’ participation at international business events and in minister-led overseas business delegations. Austrade supported Australian businesses and institutions at international PAGE business events around the world, including through minister-led business 103 missions. In 2014–15, Austrade organised 14 minister-led trade and investment missions involving 517 Australian companies and 650 registered Australian delegates. By participating in these missions, Australian businesses can connect with PAGE potential international customers and investors and achieve commercial 84 outcomes. For example, 90 per cent of the 450 participants in the Australia Business Week in India mission expect a commercial outcome in the next year.

20 Australian Trade Commission Annual Report 2014–15 02

Deliverables

Assist Australian firms and institutions with ‘behind the border’ barriers to trade and investment, consistent with legal obligations, including anti-bribery and corruption laws both in Australia and overseas. For Australian businesses and institutions, market access is most challenging where governments play a significant role in the economy, where language and business culture are a barrier, where there is less openness of regulatory frameworks and transparency of business processes, and where there are difficulties accessing distribution channels and commercial connections. In such markets, the value of the badge of government is highest. In 2014–15, Austrade continued to work with Australian firms in overseas markets to help them navigate different business cultures and languages and local regulatory requirements, and provided advice on how to engage local customers and authorities. Austrade also promoted market access improvements for services exporters PAGE arising from the North Asia free trade agreements that have entered into force. 94 Austrade worked closely with the Department of Foreign Affairs and Trade and the PAGE Department of Agriculture to influence policy development in Australia’s trading 103 partners to try to reduce regulatory barriers and provide a competitive advantage to Australian exporters. Austrade collaborated with other Australian Government agencies, business PAGE groups, chambers of commerce and other organisations on anti-bribery 142 programmes in support of the work of the Organisation for Economic Co-operation and Development and Transparency International.

Provide Australian business and education providers with quality referrals to third-party professional and business service providers to assist them in complex and unfamiliar international service markets. Austrade provides quality referrals to third-party professional and business PAGE service providers when they are better placed to assist Australian organisations 36 with a specific need. In 2014–15, Austrade provided 853 referrals to third-party service providers for Australian organisations.

Help increase demand for Australia’s education services, particularly transnational education, by positioning Australia as a provider of high-quality services to international students, including through the Future Unlimited brand, in order to assist in building a sustainable Australian international education sector. In 2014–15, Austrade began work on a long-term market development plan for PAGE the education and training sector. Titled Australian International Education 2025, 51 the plan is being developed through an extensive consultation process with stakeholders.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 21 Deliverables

The number of Future Unlimited brand licensees increased by 25 per cent, PAGE from 315 at 30 June 2014 to 394 at 30 June 2015. This includes 281 Australian 52 institutions and 113 overseas stakeholders and education agents. Austrade also conducted a transnational education roadshow in various locations PAGE around Australia in October 2015 to encourage education and training providers 55 to diversify by delivering their programmes offshore, in addition to recruiting international students to Australia.

Manage the Study in Australia website, which promotes the benefits of studying in Australia to international students; provides information on courses that meet Australia’s registration, accreditation and quality assurance standards in their own country; and provides guides to study costs and information about living in Australia. Austrade continued to administer the Study in Australia website. In 2014–15, PAGE the number of visitors to the website was 1,653,593, an increase of almost 53 14 per cent, with almost 85 per cent of visitors from offshore. Study in Australia on Facebook, Twitter and YouTube also had significant interest from social media participants.

Assess applications for income tax exemption available under section 23AF of the Income Tax Assessment Act 1936, to assist the international competitiveness of Australian companies and government organisations competing to win international tenders. In 2014–15, Austrade granted 87 approvals in response to 80 applications from PAGE 20 applicants under section 23AF of the Income Tax Assessment Act 1936. 38

Partnering with state and territory government agencies, implement productive foreign direct investment strategies in agreed priority areas of food and agribusiness, resources and energy, economic infrastructure, tourism infrastructure, and advanced manufacturing, services and technology. Austrade chaired, managed or played a major role in a number of forums or PAGE committees that provide avenues for consultation and coordination between state 99 and territory governments, including: ›› Trade and Investment Ministers’ Meetings, held twice in 2014–15, chaired by the Minister for Trade and Investment ›› the Senior Officials Trade and Investment Group, which met twice in 2014–15 ›› the National Investment Advisory Board, which met twice in 2014–15.

22 Australian Trade Commission Annual Report 2014–15 02

Deliverables

Austrade worked with the Department of Immigration and Border Protection and PAGE stakeholders on the development of the new complying investor visa framework 101 for the Significant Investor Visa and Premium Investor Visa.

Proactively target potential investors, promoting specific investment opportunities, promoting Australia’s economic credentials and detailing the regulatory environment. From July 2014, five senior investment specialists were appointed to Austrade PAGE from the private sector to add to Australia’s capacity to attract foreign investment. 65 Each specialist brings deal-making and facilitation experience, as well as deep expertise in their respective sectors that aligns with the Government’s five investment priorities. Austrade’s senior investment specialists work with Austrade’s onshore investment teams, and with states and territories, to identify specific investment opportunities in Australia, facilitate investment projects, and provide aftercare and reinvestment services.

This year, Austrade collaborated across all levels of government on a number of PAGE events and initiatives, including: 61

›› the Australian Investment Forum in Sydney in July 2014—Austrade’s engagement with organisations contributed to 12 investment outcomes, six of which had a total investment value exceeding $2 billion ›› the International Mining and Resources Conference in Melbourne in September 2014 the International Dairy Investment Forum in Melbourne, in September 2014, ›› PAGE through which Austrade identified 12 investors with strong interests in Australia 62 ›› the China Entrepreneur Club’s Australian visit in December 2014—Austrade demonstrated key investment opportunities to representatives of some of China’s leading privately owned companies ›› the Australia Business Week in India in January 2015, which included investment events on innovation in the resources and energy sectors, involving 62 delegates from India’s top private and public sector energy and steel producers; the week also included roundtable and boardroom briefings ›› investor roundtables, hosted by the Hon Andrew Robb AO MP, Minister for Trade and Investment, held as part of the Match Australia programme in early 2015, coinciding with the Australian Open tennis quarter final, the AFC Asian Cup final, and the ICC Cricket World Cup. Mr Robb hosted a total of 29 investor roundtables in 10 countries throughout 2014–15.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 23 Deliverables

Introduce potential foreign investors to state and territory governments. During 2014–15, Austrade shared 312 investor leads with state and territory PAGE governments, including 91 site visits by investors. 58 Austrade worked closely with state and territory governments and key industry stakeholders to identify and qualify 39 investor-ready projects across Australia within the five investment priority sectors.

Continue to promote Australia using collateral developed through the Australia Unlimited brand programme in target markets to advance Australia’s image and reputation in trade, investment and education. Austrade continued to encourage the use of the Australia Unlimited brand by other PAGE government agencies and industry bodies as part of their international marketing 110 activities. The brand featured prominently at events such as Australia Business Week in India; Investing in African Mining Indaba in South Africa; Australia Unlimited MENA 2015 in the Middle East and North Africa region; SIAL China; and the International Mining and Resources Conference in Melbourne. Around 70 new stories profiling Australians and Australian achievements were also made available on a number of digital platforms, and successful campaigns on Twitter, Facebook and LinkedIn have resulted in the number of social media followers increasing to nearly 15,000.

Administer and manage the main Austrade website, which provides information and online services to Australian businesses and institutions, showcases Australia’s capability and potential to international buyers and investors, and provides a centralised point of contact and engagement between businesses, institutions and Austrade staff. In 2014–15, there were more than 1.8 million visits to Austrade’s website and page PAGE views increased by 25 per cent compared to last year. Around 40 per cent of 109 Austrade’s website traffic this year was from overseas users seeking information about Australian products and services, or investing in Australia. Austrade updated its 200 country profiles in 2014–15. This was the most accessed area of the website, receiving more than 800,000 page views.

24 Australian Trade Commission Annual Report 2014–15 02

Deliverables

Implement Tourism 2020 to improve the productive capacity of the tourism industry, including contributing to the delivery of 2014 priorities agreed by tourism ministers and development of the Tourism 2020 Strategic Plan. Austrade worked with Tourism Australia, the Department of Foreign Affairs and PAGE Trade, state and territory tourism organisations and the tourism industry to 70 develop and implement the next phase of the Tourism 2020 strategy, including a programme of activities endorsed at the Tourism Ministers’ Meeting in October 2014, and reforms recommended by the Australian Standing Committee on Tourism in April 2015. Austrade cooperated with other government agencies and tourism industry PAGE stakeholders to enhance tourism access, including through streamlining visa 72 and passenger facilitation arrangements, and improving air services and aviation connectivity.

Engage with key tourism stakeholders to ensure their interests are taken into account within policy development and implementation, including in relation to labour and skills, infrastructure development and regulatory issues that impact tourism. Austrade continued to provide policy advice to the Government throughout PAGE the year to remove barriers and encourage investment in tourism infrastructure 73 and the supply of services to tourists. These services include transport (such as aviation and cruise shipping), visas, labour and skills, building and planning regulations, and other barriers to investment and the ongoing productivity of the sector.

Austrade worked with Australian, state and territory government agencies PAGE to foster a supportive and streamlined regulatory environment for tourism 73 investment, which included participation in the Investment Attraction Partnership Group. Austrade also worked closely with the sector’s four peak industry groups, consulting more than 160 industry leaders to identify potential reform areas that were prioritised by governments and representatives of the four industry groups. Austrade delivered seven tourism employment plans (TEPs) in key ‘hot spot’ PAGE regions that are experiencing acute labour and skills pressures, with an eighth 76 TEP to be delivered in Tasmania in 2015–16. At 30 June 2015, TEPs had delivered 120 targeted strategies, working with 1,200 stakeholders to support regional workforce planning. Austrade also developed A guide to developing tourism employment plans and a TEP advisory service to support additional regions with labour and skills shortages. Other resources developed include a workforce planning guide and TEP tools website, with information to support tourism and hospitality businesses with recruitment, retention and skills needs.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 25 Deliverables

Deliver an enhanced China Approved Destination Status scheme, to ensure a quality tourism experience for Chinese group leisure tourists. Austrade released a revised Code of Business Standards and Ethics for the China PAGE Approved Destination (ADS) scheme in December 2014, which came into effect 82 in January 2015. The revised code provided for the inclusion of tour guides in the ADS scheme, in addition to inbound tourism operators. At 30 June 2015, there were 69 approved ADS inbound tourism operators and 2,316 tour guides had been approved under the scheme.

Transition the National Tourism Accreditation Framework (T-QUAL Accreditation) to industry. The Government announced before the 2013 federal election that it would PAGE transfer responsibility for T-QUAL Accreditation to industry through a 77 tender process. The tender process found no industry-based organisation that demonstrated an ongoing and long-term business model for T-QUAL Accreditation. The Government ceased T-QUAL Accreditation on 30 June 2014. Austrade implemented strategies for closure and stakeholder engagement to wind up the programme.

Produce and disseminate strategic tourism research and forecasts, including the 2014 State of the Industry report. Austrade, through Tourism Research Australia (TRA), continued to measure the PAGE structure and performance of the Australian tourism industry through strategic 78 and economic research. It delivered tourism business and employment data, and economic impact and regional expenditure data. Key publications released in 2014–15 included the State of the Industry 2014, Tourism Investment Monitor 2015, Tourism Forecasts: Autumn 2014, State Tourism Satellite Accounts 2013–14, Tourism Regional Profiles 2013–14, and Local Government Area Profiles. TRA also delivered its quarterly International Visitor Survey and National Visitor Survey, and its Destination Visitor Survey, and undertook Asia Marketing Fund research in partnership with Tourism Australia to assist efforts to grow tourism demand from Asia. TRA released 24 research reports in 2014–15.

Administer and manage the Tourism Research Australia website, which provides information and research services that underpin tourism policy development and help improve the performance of the tourism industry for the benefit of the Australian community. Austrade continued to manage the Tourism Research Australia (TRA) website, PAGE which received 89,342 visits in 2014–15. The website freely supplied most TRA 80 research, including a broad range of statistics collected from the International Visitor Survey and National Visitor Survey. TRA continued to generate revenue from customised data requests and subscriptions to TRA Online, a database containing time-series data from the International Visitor Survey and National Visitor Survey.

26 Australian Trade Commission Annual Report 2014–15 02

Deliverables

Draw on Austrade’s global and commercial perspective to provide policy advice and economic insight to government. Austrade provided global and commercial perspectives throughout the year to PAGE inform the policy advice and economic insights of Australian, state and territory 99 government agencies. It did this through a number channels, including strategic partnerships, collaborating on joint initiatives, and convening or taking part in a number of forums that provide avenues for consultation and coordination between state and territory governments on trade, investment, education, and tourism policy issues.

Table 3: Summary of results for programme 1.1 key performance indicators

Key performance indicator

Satisfaction

High level of satisfaction by ministers, Australian business community, institutions and key partners with Austrade’s services. Austrade’s Service Improvement Study is independently conducted on a quarterly basis to assess the agency’s service delivery and identify areas of improvement in its services to businesses and institutions. In 2014–15, the Service Improvement Study found that 89 per cent of Austrade’s PAGE clients were satisfied with their dealings with the agency during the past 41 12 months. The same result was achieved in 2013–14. The survey also showed that 80 per cent of clients rated Austrade’s paid services as representing good value for money. This is an increase on the 2013–14 figure of 79 per cent. Austrade also updated several service policies and procedures throughout the year to help staff deliver consistent levels of service across Austrade’s dispersed network. The office of the Minister for Trade and Investment indicated a high level of PAGE satisfaction with Austrade’s comprehensive ministerial business missions 84 programme. Mission participants have also expressed positive feedback; for example, 98 per cent of Australia Business Week in India participants were satisfied with their experience.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 27 Key performance indicator

Trade

Proportion of Australian businesses that have engaged with Austrade, and say Austrade made a positive contribution to their international business activities. In 2014–15, Austrade’s Service Improvement Study found that 78 per cent of PAGE Australian organisations indicated that Austrade made a positive contribution to 42 their international business activities. The same result was recorded in 2013–14.

Proportion of Australian businesses that have engaged with Austrade, and say they achieved some form of commercial outcome as a result of working with Austrade. In 2014–15, Austrade’s Service Improvement Study found that 75 per cent of PAGE Australian organisations indicated that they achieved some form of commercial 42 outcome as a result of working with Austrade. This is an increase on the 2013–14 figure of 71 per cent.

Education

Proportion of Australian education institutions that have engaged with Austrade, and say Austrade made a positive contribution to their international business activities. In 2014–15, Austrade’s Service Improvement Study found that 88 per cent of Australian institutions indicated that Austrade made a positive contribution to their international business activities. This is an increase on the 2013–14 figure of 79 per cent.

Proportion of Australian education institutions that have engaged with Austrade, and say they achieved some form of commercial outcome as a result of working with Austrade. In 2014–15, Austrade’s Service Improvement Study found that 87 per cent of Australian institutions indicated that they achieved some form of commercial outcome as a result of working with Austrade. This is an increase on the 2013–14 figure of 76 per cent.

Investment

Austrade has a shared set of key performance indicators with the states and territories: The number of investment outcomes facilitated. Austrade, along with its key partners in state and territory governments and PAGE industry sectors, contributed to 92 inward investments during 2014–15. This is an 58 increase of 28 per cent on last year’s figure of 72 inward investments.

28 Australian Trade Commission Annual Report 2014–15 02

Key performance indicator

The amount of capital expenditure associated with foreign direct investment outcomes facilitated. There was $7.75 billion of capital expenditure associated with foreign direct PAGE investment outcomes facilitated in 2014–15. 58 Please note that this information is supplied by inward investors only, on a voluntary basis, and does not cover all inward investments.

The number of new jobs created/retained (ongoing full-time equivalents) as a direct result of investment outcomes facilitated. There were 17,685 new ongoing full-time equivalent jobs created or retained as a PAGE direct result of investment outcomes facilitated. 58 Please note that this information is supplied by inward investors only, on a voluntary basis, and does not cover all inward investments.

The anticipated annual exports from investment outcomes facilitated. There were $14.5 million worth of anticipated annual exports from investment outcomes facilitated in 2014–15. Please note that this amount is supplied by inward investors only, on a voluntary basis, and most did not supply this information in 2014–15. Noting that investments can have gestation times that span multiple years from the initial investor contact to actual investment commitment, results will not be fully realised in the short term. In the shorter term, in accordance with the protocols developed with the states and territories, Austrade is responsible for proactively promoting Australia as an attractive investment destination measured by:

The number of investment promotional events and roundtables conducted. Austrade conducted 109 investment events throughout 2014–15. This included PAGE 29 investor roundtables hosted by the Minister for Trade and Investment in 63 10 countries.

The number of information, project and visitation requests generated from potential investors. There were 171 information, project and visitation requests generated from potential investors in 2014–15. This is an increase of 44 per cent on the 2013–14 figure of 119.

The number of investor introductions provided to the states and territories. There were 141 investor introductions provided to the states and territories in 2014–15. This is an increase of 36 per cent on the 2013–14 figure of 104.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 29 Key performance indicator

Tourism

Priorities and outputs outlined in the Tourism 2020 Implementation Plan for 2014 progressed in accordance with agreed timeframes. Austrade progressed the four priorities it has responsibility for in the Tourism 2020 Implementation Plan 2015–2020 in accordance with agreed timeframes set by the Australian Standing Committee on Tourism. These included: Increase cross-portfolio collaboration

›› Austrade engaged extensively with Australian Government agencies to PAGE progress key reforms, including visa reform and improved aviation capacity. 70 Improve visa arrangements

›› Four visa trials were announced as part of the White Paper on Developing PAGE Northern Australia, including a 10-year multiple entry visitor visa for Chinese 72 nationals, fast-tracked processing (for a fee), online application lodgement in simplified Chinese, and the rollout of online visitor visa lodgements for visitors from China and India. ›› Reforms to the working holiday visa and seasonal worker programme were also announced as part of the White Paper on Developing Northern Australia. Improve aviation capacity

›› New air services arrangements were introduced with China, Chile and the PAGE Philippines, resulting in a significant increase in capacity and providing greater 73 access to Australian gateway airports. Develop a skilled tourism workforce

›› Austrade delivered seven tourism employment plans in key ‘hot spot’ regions PAGE that are experiencing acute labour and skills pressures. 76 In 2014, Austrade provided assistance to five major tourism projects, progressing more than $2 billion worth of development that will support 12,000 jobs.

30 Australian Trade Commission Annual Report 2014–15 02

Key performance indicator

Proportion of tourism operators who use Austrade’s tourism research and information and say it helped support their marketing and business decisions. 81 per cent of tourism operators who use Austrade’s tourism research and information indicated that it helped support their marketing and business decisions.

Whole-of-government

Effective contribution to whole-of-government policy development using Austrade’s commercial perspectives on export, investment, international education and tourism. Austrade uses its commercial perspective, working collaboratively across all PAGE levels of government, as well as with industry associations and chambers of 99 commerce, specifically on trade, investment, education, and tourism policy issues. Key examples included supporting various government policy initiatives, including a new complying investor visa framework, and several white papers and cross- government initiatives, such as the White Paper on Developing Northern Australia, the Agricultural Competitiveness White Paper, the Rethink tax: Better tax, better Australia discussion paper, the Energy White Paper, the Australian Customs and Border Protection Service’s Trusted Trader programme, and the Industry Productivity and Competitiveness Agenda.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 31 Promoting Australian trade internationally Austrade assists Australian businesses and ›› e-commerce—Online retail and cross- institutions to access commercial opportunities border e-commerce portals have now been in overseas markets. It draws on its deep combined with international delivery and commercial knowledge, its international payment agencies, such as Australia Post network, and its relationships and connections and Alipay, to provide a simplified, end-to- with international customers and decision- end logistics solution. It is particularly useful makers to identify valuable international for small businesses, enabling them to reach business opportunities and help Australian into large and growing consumer markets like businesses and institutions take advantage of China, Japan, Korea, India and the Association those opportunities. of Southeast Asian Nations (ASEAN).

Through a framework of four different routes ›› trade missions and events—Austrade targets that exporters can take to access international Australian comparative advantage, capacity markets, Austrade directs its resources to the and capability within inbound and outbound areas of greatest opportunity for Australian missions and events, delivering a more exporters. These are: targeted business opportunity for participants in these activities. ›› global value chains—More than 80 per cent of the world’s manufactured exports In 2014–15, building on extensive market are unfinished goods. The integration of analysis of global demand, Austrade focused on business supply chain processes with global six key industry sectors that reflect Australian digital access provides new opportunities capability, capacity, appetite and competitive for best-in-class Australian solutions and advantage. These were: competitive advanced manufacturing ›› food and agribusiness—leveraging Australia’s suppliers to more easily and efficiently credentials for clean and safe premium participate in the procurement requirements food and beverages, as well as sustainable of multinational corporations. and productive agricultural techniques ›› Policy, Research, Equipment, Technology, and solutions Skills and Services (PRETSS) framework— ›› resources and energy—particularly mining This Austrade framework takes a holistic, equipment, technology and services, and market-wide approach to defining exactly related education, training and research; oil what is required to meet a high-value and gas technologies, including engineering opportunity. It targets and sometimes and technology solutions and work health and helps develop the policies, regulations and safety; and energy efficiency technologies and governance required to meet that opportunity, management solutions as well as the research requirements and ›› health—focusing on disruptive technologies equipment or goods, technology, skills and and health services, including health services needed that can be supplied by information technology and software, Australian companies. The PRETSS framework medical devices, aged care and senior has proven to be particularly effective in living, biotechnology research, clinical trials emerging markets. and pharmaceuticals

32 Australian Trade Commission Annual Report 2014–15 02

›› advanced manufacturing innovation— the pace of trade expansion, with trade volumes focusing on aerospace, defence, marine and expected to rise by 4.1 per cent in 2015, and automotive components and aftermarket 4.4 per cent in 2016. However, in recent years, technologies, and helping businesses to official forecasts have tended to consistently access global value chains overestimate the actual outcomes. Part of this ›› infrastructure—focusing on sustainable gap likely reflects the still subdued pace of urban development; rail, road, port global output (GDP) growth. and aviation infrastructure, including There is also an emerging consensus among technology, equipment, skills development analysts of a structural shift in the world and services; and water and waste economy, meaning that a given rate of world management, environment protection and GDP growth is now associated with a lower remediation solutions rate of trade growth than in the past. A range of ›› services—focusing on financial services, possible explanations have been advanced for information and communications technology, this change, including a slowdown in the pace professional business advisory services, and of international trade liberalisation, shifts in the Australia’s capability in the delivery of major nature of emerging economy growth models, sporting events. and a decline in the rate of expansion of global value chains—although, as yet, there is no Trade operating context definitive conclusion. As a result, the prospects Austrade’s operating context in relation to trade for future world trade growth remain subject to is discussed below, followed by examples of significant uncertainty. achievements relating to its deliverables and key performance indicators for the promotion of Australia’s exporter community Australian trade internationally (see tables In 2013–14, Australian businesses sold a 2 and 3 on pages 19–31). total of $330 billion in exports of goods and 2 For Austrade to operate effectively, it needs services. This total included 45,306 exporters to understand the global trade environment of goods worth around $273 billion, and and the characteristics of Australia’s exporters around 2,788 exporters of services valued 3 and exports. at $57 billion. As is the case for many of the world’s economies, a relatively small number of exporters accounted for the bulk of total exports The global trade environment by value. Figures 4 and 5 provide profiles of Annual world trade growth has continued to run Australian goods and services exporters by at rates well below its pre–global financial crisis value of exports and by number of exporters. average of around 7 per cent. According to the International Monetary Fund (IMF), the volume of world trade in goods and services grew by 2 Australian Bureau of Statistics 2015, Characteristics of Australian a relatively sluggish 3.2 per cent in 2014, little exporters, 2013–14, cat. no. 5368.05.55.006. There is no accurate methodology to calculate the overlap between goods and services changed from the 3.3 per cent recorded in exporters. 2013.1 The IMF forecasts a gradual increase in 3 The Australian Bureau of Statistics excludes businesses that supply goods and services to foreign tourists and students domestically, sales of goods and services by Australian businesses to other 1 International Monetary Fund 2015, World Economic Outlook update, Australian businesses for subsequent export, and exports of goods July 2015. consignments with a value less than $2,000.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 33 Goods exports Services exports

Eighty-nine per cent of all goods exports were Australia’s exports of services exhibit a similar exported by just 423 Australian businesses, relationship between the size of exporter and which each had exports greater than $50 million the contribution to total exports. In 2013–14, in value. These large firms accounted for there were 108 exporters, or about 4 per cent about 1 per cent of the total number of goods of the total, each with exports worth more than exporters. A total of 9,112 exporters, or about $50 million. This group was responsible for 20 per cent of all goods exporters, each about $13.5 billion, or 67 per cent, of the total had exports worth between $250,000 and value of services exports attributed to individual $50 million. This group accounted for more exporters.4 Ninety-six per cent of services than $28 billion of exports in 2013–14, or about exporters, each with exports worth less than 10 per cent of total goods exports by value. $50 million, were responsible for the remaining A further 35,771 exporters, or about 79 per 33 per cent of total services exports (Figure 5). cent of all goods exporters, each had exports worth less than $250,000. This largest group of Figure 5: Australian services exporters, 2013–14 exporters was responsible for about $1.5 billion

of exports, or less than 1 per cent of the total $20.2 billion of exports 2,788 exporters goods exports for the year (Figure 4). 100

$6.8 billion (33%) 2,680 (96%)

Figure 4: Australian goods exporters, 2013–14 80

$273 billion of exports 45,306 exporters 60 $1.5 billion (1%) 100 $28 billion (10%) $13.5 billion (67%) 90 Percentage 40

70 20

60 108 (4%) $243 billion (89%) 35,771 (79%) 0 50 Value of exports Number of exporters 40

Percentage Exporters with less than $50 million of exports 30 Exporters with more than $50 million of exports 20

10 9,112 (20%) Note: Figures may not add up due to rounding. 423 (1%) 0 Source: Characteristics of Australian exporters, 2013–14, Value of exports Number of exporters cat. no. 5368.0.55.006, released 23 June 2015. Exporters with less than $250,000 of exports Exporters with between $250,000 and $50 million of exports Exporters with more than $50 million of exports

4 The Australian Bureau of Statistics (ABS) excludes businesses Note: Figures may not add up due to rounding. that supply goods and services to foreign tourists and students domestically, sales of goods and services by Australian businesses Source: ABS, Characteristics of Australian exporters, to other Australian businesses for subsequent export, and exports 2013–14, cat. no. 5368.0.55.006, released 23 June 2015. of goods consignments with a value less than $2,000. Due to these exclusions, the ABS does not produce a breakdown by size and number for services exporters accounting for $37 billion or 65 per cent of the total.

34 Australian Trade Commission Annual Report 2014–15 02

Direction of exports United States, which is Australia’s fourth-largest export market, were around 5.7 per cent of total In 2014, Australia exported a total of $327 billion exports. A breakdown of Australia’s top 10 export of goods and services, comprising $267 billion of destinations is shown in Figure 6. goods and $60 billion of services.5 Total exports were up about 2.5 per cent on the previous year in value terms, with goods exports rising Composition of exports by almost 1.3 per cent, while exports of services Exports of minerals and fuels accounted were up by 8.5 per cent. for almost half of total Australian goods and services exports in 2014, and exports of rural Northeast Asia continued to dominate Australia’s goods accounted for more than 12 per cent. export profile, receiving 56 per cent of Australia’s Exports of manufactures had a 13 per cent share total exports. Australia’s exports to ASEAN of total exports, while exports of other goods, accounted for a further $40 billion, or around including gold, accounted for around 6 per cent. 12.3 per cent of total exports. Total Australian Services exports made up more than 18 per cent exports of goods and services to East Asia in of the total.6 The composition of Australia’s 2014 were worth almost $224 billion, or just top 10 exports in 2014 is shown in Figure 7. over two-thirds of all export earnings. Exports to the European Union nations were around 6.8 per cent of total exports, while exports to the

5 Department of Foreign Affairs and Trade 2015, Composition of Trade 6 Department of Foreign Affairs and Trade 2015, Composition of Trade Australia 2014, at http://dfat.gov.au/about-us/publications/Pages/ Australia 2014, at http://dfat.gov.au/about-us/publications/Pages/ composition-of-trade.aspx. composition-of-trade.aspx.

Figure 6: Australia’s top 10 export destinations for goods and services, 2014

100

40 Value of exports ($ billion) 20

0 a N a India Chin Japan Kore ASEA Taiwan Hong Kong United States New Zealand European Union

Source: Department of Foreign Affairs and Trade 2015, Composition of Trade Australia 2014, at http://dfat.gov.au/about-us/ publications/Pages/composition-of-trade.aspx.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 35 Figure 7: Composition of Australia’s top 10 exports, 2014

Iron ores and concentrates

Coal

Natural gas

Education-related travel services

Personal travel (excluding education)

Gold

Crude petroleum

Beef

Aluminium ores and concentrates

Wheat

010203040506070

Value of exports ($ billion)

Source: Department of Foreign Affairs and Trade 2015, Composition of Trade Australia 2014, at http://dfat.gov.au/about-us/ publications/Pages/composition-of-trade.aspx.

Austrade’s services to Austrade undertook an internal review of its Australian businesses opportunities model in 2014, and a more flexible approach to quickly disseminating simple Austrade provides exporters with relevant and opportunities (sales leads) was established, commercially useful information and advice, with which companies can pursue easily and without access to its in-market networks, to decision- Austrade assistance. This approach means makers, and to business identified by Austrade Austrade can focus on delivering longer-term, and others. more productive business opportunities that may lead to higher returns, including through the Delivering opportunities to exporters PRETSS model and engaging in e-commerce. Delivering valuable international business In 2014–15, Austrade distributed 303 sales leads. opportunities to Australian firms, and helping Austrade provides quality referrals to third- those firms to make business connections party professional and business service in international markets, is an integral part providers when they are better placed to assist of Austrade’s work. Through its in-depth Australian organisations with a specific need. relationships with overseas customers, In 2014–15, Austrade provided 853 referrals to Austrade identifies opportunities that correlate 644 organisations. with Australian industry capability, capacity and appetite to export. It then delivers those Accessing global value chains opportunities to Australian exporters. Increased globalisation has led to the In 2014–15, Austrade provided 11,450 general emergence of global value chains, where and tailored services to 4,498 Australian different stages of one production process organisations to help them access opportunities are located around the world. In 2013, it was identified by Austrade and others. estimated that approximately 80 per cent of world trade was structured within global

36 Australian Trade Commission Annual Report 2014–15 02 value chains,7 causing a paradigm shift solutions and firms that can deliver gains in in business growth and international efficiency, sustainability, safety and productivity. competitiveness. Overcoming obstacles to Australian suppliers are then able to present their participation in global value chains can pay solutions to multinational companies. big dividends—developing economies with the For example, Austrade has been engaging with fastest-growing participation in global value multiple contacts across aerospace hubs in chains have GDP per capita growth rates 2 per cent above average.8 Singapore to explore how Australian component manufacturers, with assembly and sub-assembly Among Organisation for Economic Co-operation capabilities, can add value to relevant supply and Development (OECD) countries, Australia’s chains. firms are currently in the bottom half of the participation rate in global value chains,9 so Austrade’s global mining customer access Austrade is putting considerable resources into programme has built strong networks in Latin improving Australian businesses’ engagement America, resulting in interest from procurement in global value chains. Austrade’s extensive executives at Colombia’s Cerrejon, one of offshore network is uniquely positioned the world’s largest open-pit mines. Cerrejon to understand the policies, organisations is in discussions with Australian exporters for and people that influence the decisions of solutions in dump truck design, dust suppression multinational companies, and to connect and fuel efficiency. Australian services and manufacturing firms with decision-makers. Facilitating missions and events

Austrade facilitates Australian businesses’ Achieving outcomes in global value chains and institutions’ participation at international In 2014–15, Austrade advanced its Accessing business events, including minister-led missions, Global Value Chains five-year strategy, focusing helping organisations to make connections with initially on the aerospace, automotive, and mining potential customers. Likewise, Austrade also equipment, technology and services sectors. supports other onshore and offshore events, As part of this strategy, Austrade has targeted such as trade shows. Austrade assisted major multinational companies to help identify 517 organisations’ participation in minister-led particular gaps or requirements within their value business missions to destinations like India, chains. Working with other government agencies, Latin America and New Zealand, among Austrade promoted best-in-class Australian other markets.

For more information on Austrade’s coordination

7 OECD 2013, Implications of global value chains for trade, of minister-led business missions, where it takes investment, development and jobs, OECD, World Trade the lead across government, see page 103. Organization and United Nations Conference on Trade and Development, p. 7, www.oecd.org/sti/ind/G20-Global-Value- Chains-2013.pdf. 8 United Nations Conference on Trade and Development 2013, Global value chains and development: Investment and value added trade in the global economy. 9 OECD 2014, Global value chains: challenges, opportunities, and implications for policy, OECD, World Trade Organization and World Bank Group, www.oecd.org/tad/gvc_report_g20_july_2014.pdf.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 37 Engaging online Approving exemptions under section 23AF of the Income Tax Assessment Act 1936 Existing and potential exporters can learn about and access Austrade’s services through Supporting the work of the Australian Taxation its website, www.austrade.gov.au. In 2014–15, Office, Austrade has the delegation to determine there were 1,831,177 visits to Austrade’s website approved project status under section 23AF and 5,722,586 page views. Approximately of the Income Tax Assessment Act 1936. This 40 per cent of Austrade’s website traffic is allows individuals who worked overseas on an from overseas users seeking information about approved project, for a continuous period of Australian products and services, or investing at least 91 days, to be exempt from Australian in Australia. For more information on Austrade’s income tax. While Austrade approves project applications, actual granting of exemptions rests online services, see page 109. with the Australian Taxation Office.

Providing advice through Austrade Direct This exemption typically applies to projects in countries where individuals do not pay Australian organisations can also learn about income tax, or where income tax is not levied and access services from Austrade through on foreign workers because the project is Austrade Direct. This team of advisers provides funded by an international development agency practical advice over the phone or by email (such as the World Bank). It can enhance the to help Australian companies assess their competitiveness of international tender bids by international readiness, and to guide them Australian organisations, as well as strengthen through their options as they pursue international Australian companies’ capabilities, broaden markets and customers for their products and employees’ skills, and raise the international services. In 2014–15, Austrade Direct delivered profile of Australian industry. export advice through 7,685 email enquiries and In 2014–15, Austrade granted 87 approvals in 7,500 inbound phone calls. Austrade Direct can response to 88 applications from 20 applicants; be contacted via its dedicated phone number, this compares to 114 approvals, 119 applications 13 28 78, or by email to [email protected]. and 24 applicants in 2013–14. The overall decline in project volume is mostly due to reductions in the number of petroleum projects in the Middle East and electricity projects in Africa.

13,232 15,185 1.8M+ 40%

overall services email and phone of visitors to Austrade’s visits to Austrade’s provided by Austrade to enquiries received website were from website Australian exporters(a) through Austrade Direct overseas

(a) This figure includes general and tailored services, sales leads, referrals and minister-led mission participation.

38 Australian Trade Commission Annual Report 2014–15 02

Australian company reinvents the blood test

overseas business partners. The company believes that Australian Government support played a crucial role in the success of what was to become its AtomoRapid platform.

Seeing the opportunities to improve the accuracy of HIV testing, and following market research conducted by Austrade, Atomo Diagnostics decided to first test its Atomo Diagnostics is an award-winning AtomoRapid HIV rapid test in the South Australian medical technology company African cities of Johannesburg, Cape Town that develops and commercialises rapid and Pretoria. diagnostic solutions, fundamentally changing The AtomoRapid HIV integrated rapid the way that diseases can be diagnosed. antibody test won ‘best in show’ at the 2014 The company launched in 2010 with the goal Medical Design Excellence Awards in New of creating a straightforward, accurate and York, with the judges declaring that the immediate blood test. product was ‘earth-shaking in its potentially Austrade has been working with Atomo significant impact on third-world detection of Diagnostics on its export plans since its infectious disease, global public health and inception, providing market briefings and individual healthcare’. advice on local business practices across Pictured: Atomo Diagnostics’ AtomoRapid platform. several international markets, as well as Austrade has worked with the company on its export introductions to key government officials and strategy since 2010. Photo: Atomo Diagnostics.

Approved projects were located in the Free trade agreement outreach following regions: In a landmark year, the Australian Government ›› Middle East—37 (43 per cent) negotiated or concluded free trade agreements ›› Indo-Pacific—36 (41 per cent) (FTAs) with North Asia’s three largest ›› Africa—8 (9 per cent) economies—Korea, Japan and China. Austrade ›› Central Asia—6 (7 per cent). has played a crucial role in explaining the FTAs to Australia’s business community. In 2014–15, 40 approved projects (46 per cent) were commercially funded; the remaining 47 Austrade, with the Department of Foreign Affairs (54 per cent) were funded by international and Trade (DFAT), has delivered an Australia- development agencies. wide FTA seminar series that shows how companies can take advantage of opportunities

Part 02 / Report on performance. Outcome 1 – Programme 1.1 39 provided by the China–Australia Free Trade Leveraging opportunities from free Agreement, the Korea–Australia Free Trade trade agreements Agreement and the Japan–Australia Economic To leverage opportunities emerging from these Partnership Agreement. agreements, Austrade initiated the Australian The Hon Andrew Robb AO MP, Minister for Services Framework Project, a qualitative Trade and Investment; the Hon Bruce Billson research project that aims to identify the barriers MP, Minister for Small Business; and the Hon and impediments to Australia-based legal and Steven Ciobo MP, Parliamentary Secretary to the advisory firms across four markets—Japan, Minister for Trade and Investment, opened the Korea, Singapore and Indonesia. seminar series, which provided briefings about Austrade partnered with the Department of the benefits of the FTAs and practical information Industry and Science, the Australian Services on how to use them. Roundtable and Asialink Business to undertake Local businesses shared their experiences, intensive interview-based research into barriers and attendees participated in an interactive for the four modes of service delivery by legal panel and question-and-answer discussion with and advisory firms—cross-border trade (services the ministers and representatives from DFAT, supplied from the location of one country into Austrade, TradeStart, AusIndustry and Efic. the location of the consumer); consumption abroad (services supplied in the territory of Business representatives were also able to the producer to the consumers of another speak with government representatives in country); commercial presence (services networking sessions and take home a ‘trade supplied through a business or professional toolkit’ of relevant information, dependent establishment that has relocated to be near on the company’s level of exporting. the consumer); and temporary movement of Early feedback from attendees has been natural persons (services supplied by nationals overwhelmingly positive. of one country moving to the consumer’s country). The research outcomes will inform Austrade’s trade development strategies to assist professional services firms to access new international markets.

Austrade’s TradeStart network

In 2014–15, Austrade’s TradeStart network of 27 offices operating in metropolitan and regional Australia broadened the reach of the agency’s L–R: His Excellency Shinzō Abe, Prime Minister of Japan, trade and education promotion services. A and the Hon Tony Abbott MP, Prime Minister of Australia, tender process was finalised and new contracts shake hands after signing the Japan–Australia Economic Partnership Agreement at Parliament House, Canberra, in July commenced on 1 September 2014. Partner 2014. Photo: Andrew Taylor. organisations for the 2014 to 2018 period were also announced, including new partners in Canberra and Perth.

40 Australian Trade Commission Annual Report 2014–15 02

Craig Malcolm TradeStart Adviser, Melbourne

Craig Malcolm is Craig has a master in international business, the trade adviser and uses his 20 years’ experience working in Melbourne for in small businesses, as well as extensive Austrade’s TradeStart knowledge and experience in Asia, to network. He is one of assist Australian companies to expand into three advisers employed international markets. by partner organisation, With eight new advisers having joined the Australian Industry Austrade’s TradeStart network in 2014, Craig Group. Craig started in his role in 2003 and is has been able to share his experience with his one of the longest-serving TradeStart advisers. new colleagues, including mentoring them on He works with a large portfolio of exporters finding unique selling propositions for clients. across diverse sectors, ranging from premium He said, ‘We see a lot of different exporting processed food to technology. ‘I work with approaches and it’s very rewarding to advise so many different products and services and a client on how to maximise their commercial different overseas markets—I learn something impact’. new every day’, he said.

Jointly delivered by state, territory and local Achieving high standards of service governments, industry associations and Each year, Austrade undertakes a chambers of commerce, TradeStart partner comprehensive Service Improvement Study organisations offer a range of assistance to assess its service delivery and identify for exporters or potential exporters that areas for improvement in its services to complements Austrade’s services for export- Australian businesses. The study is conducted ready businesses. Austrade’s TradeStart network independently and results are now delivered provides exporters with a local contact who quarterly. can help them navigate overseas markets, and provide direct access to Austrade’s In 2014–15, the Service Improvement Study overseas network. found that 89 per cent of Austrade’s clients were satisfied with their dealings with the agency Apart from export advice, Austrade’s TradeStart during the past 12 months. Austrade’s net network provides insights on issues concerning promoter score is very strong, at +33, up from regional areas, including the significant effects of +25 in the previous year. These results reflect seasonal or natural disaster events on Australian the strong client service culture that exists export capacity. TradeStart locations and partner within Austrade. organisations are listed in Appendix A.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 41 The survey also collected a range of more into Austrade’s work. It also allows for complaints detailed information and feedback, including: to be resolved in a timelier manner, as well as ›› 80 per cent of all clients rated Austrade’s paid supporting follow-up activities through a re- services as representing good value for money. contact programme. The new methodology identifies Austrade’s service areas that clients ›› 80 per cent of all clients said Austrade made a believe will have the greatest impact on their positive contribution to their business. business. In turn, this allows Austrade to tailor and ›› 78 per cent of all clients said they achieved improve its services to focus on activities that a commercial outcome as a result of working deliver maximum impact to businesses. with Austrade. The 2015 Service Improvement Study found Figure 8 shows clients’ ratings of Austrade’s that the number of clients who rated Austrade’s services over the past five years. services as extremely good or very good was at its highest level since 2008. This reflects a Client ratings of Austrade’s service, Figure 8: refinement of Austrade’s initiatives to better match 2011 to 2015 Australian businesses’ capability, capacity and

100 interest in growing sectors of global demand, as 87 87 89 89 85 well as a renewed focus on delivering high-quality

80 14 13 13 18 23 Extremely good client services that are tailored to the needs Very good of individual businesses and their objectives Good 60 internationally. 41 39 41 39 40 Poor Neutral 40 During the year, Austrade also updated several service policies and procedures to help staff 20 33 33 34 32 26 deliver consistent levels of service across its dispersed network. Staff can access a range of 0 8109 67 online tools to help them provide the highest 4 2 4 4 -20 5 quality service when working with other 2011 2012 2013 2014 2015 organisations. Service policies also reinforce (n=1,001) (n=1,200) (n=1,302) (n=1,080) (n=1,112) service standards and support a culture of Note: Due to rounding, totals may not add up to 100 per cent. consistent business practices. In 2014, Austrade changed its survey Organisations engaging with Austrade can methodology from a yearly survey to a quarterly provide formal compliments and complaints at online survey. This allows for the collection of any time. Feedback is reviewed regularly, and is feedback on services closer to the date they were used to improve service delivery in Australia and delivered, providing more current perspectives 89% 80% 80% 78%

of organisations said of all clients were of all clients rated of all clients achieved a Austrade made a positive satisfied with Austrade’s Austrade’s paid services commercial outcome by contribution to their services in the past year as good value for money working with Austrade business

42 Australian Trade Commission Annual Report 2014–15 02 overseas, as well as identify issues of importance upgrade of the database was undertaken and to stakeholders. In 2014–15, Austrade received around 1,000 company profiles were updated 39 formal complaints about its services. It also so the latest products, services and contact received many compliments during the year. details of Australian exporters are available to While compliments are not consistently tracked, potential customers. a sample of up to 40 compliments is provided to Austrade’s Executive each month, along with Match Australia programme complaints. Austrade’s Service Charter can be The Australian Government’s international sports found on www.austrade.gov.au and in this report business programme, Match Australia, connects at Appendix B. Australian businesses with global partners through major sporting events. Austrade, in partnership Highlighting Australia’s export capabilities with state and territory governments, manages Another core focus for Austrade is demonstrating the programme. It is one of a range of initiatives Australia’s comparative advantages to potential under the Major Sporting Events Taskforce, which overseas customers, promoting Australian is managed by the Office for Sport. suppliers as productive, efficient, sustainable Earlier in 2015, Austrade implemented a and safe. Austrade has developed a library of comprehensive business engagement strategy industry capability reports as part of this work. in 10 countries to encourage high-level business These comprehensive reports cover the global delegations to visit Australia and take part demand trends impacting different industries and in business networking activities during the how Australian suppliers can provide solutions for AFC Asian Cup, Australian Open Tennis and global customers. ICC Cricket World Cup. This outreach included a number of networking activities in Japan, China, Austrade has 25 industry capability reports within Korea, the United Arab Emirates, Qatar, Jordan, its library, with infrastructure finance and road India, Pakistan, Sri Lanka and South Africa. safety among the 10 reports newly produced in the past financial year. The reports are used by Programmes during the tournaments attracted Austrade, other Australian Government agencies, more than 100 international investors and customers to Australia, who participated in a state and territory governments, and industry series of ministerial investment roundtables, stakeholders to promote Australia’s strengths to individual business programmes, and state and potential customers. territory trade and investment networking events. Austrade also uses online technology to International attendees included sovereign connect customers and exporters through wealth funds looking to build partnerships with the Australian Suppliers Directory, a web- Australian financial services providers; resources, based tool available at www.austrade.gov.au, energy, agribusiness and tourism firms seeking to promote Australia’s high-quality products, new or expanded investment opportunities in services and solutions. This database allows Australia; and organising committees of major customers to search through more than 6,000 international tournaments seeking information Australian exporting organisations, across and introductions to Australian companies with 17 industries, by keyword, sector or company world-class capability in the planning, delivery and name. In 2014–15, a comprehensive review and legacy of major sporting events.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 43 The Match Australia programme will be expanded departments and agencies, state and territory from 1 July 2015 and will continue to showcase governments, industry associations and Australia to international businesspeople chambers of commerce, and industry and attending major sporting events, such as the 2016 professional service providers. Partnering Rio de Janeiro Olympic Games. with these organisations supports Austrade’s corporate strategy, extends its reach, and results Working with partners in greater outcomes for Australian businesses.

Austrade works with partner organisations For example, during the year, Austrade to build collective knowledge, networks and formalised partnerships with industry resources, with the common goal of contributing associations such as AusBiotech and Food to Australia’s economic prosperity. Austrade’s Innovation Australia Limited. In March 2015, partners include other Australian Government Austrade worked with Austmine, the peak

Australian clean technology powers global markets

investment and $58 million in sales) signed in 2014.

Austrade started working with RayGen in 2013 when the company was a finalist in the Australian Technologies Competition, which is funded by the Department of Industry and Science. Austrade invited RayGen to join Australian solar technology company, the November 2013 clean technology trade RayGen Resources, has paved the way for mission to China, during which they were the global export of utility-scale solar energy introduced to Juye Solar. This introduction with the official opening of the world’s first resulted in the signing of the $60 million concentrated solar photovoltaic (CSPV) investment and distribution deal to supply power station in Newbridge in Victoria. its leading-edge solar power generation technology into China. The signing was In March 2015, a memorandum of observed by the Hon Andrew Robb AO MP, understanding was signed with China’s Minister for Trade and Investment, during the Juye Solar for a capital investment of Australia Week in China business mission $6 million, enabling RayGen to boost its held in April 2014. Mr Robb described the export manufacturing capability and increase agreement as a ‘tremendous example of production to 50 megawatts per year. A Australian innovation finding a market in further $15 million capital injection by Juye China which results in jobs, investment and Solar in China will increase production on trade for Australia’. the ground, and help drive sales to hundreds of megawatts. This agreement builds on Pictured: RayGen’s 200-kilowatt CSPV facility operating the previous $60 million deal ($2 million at Newbridge, Victoria. Photo: RayGen.

44 Australian Trade Commission Annual Report 2014–15 02 industry body for the mining equipment, ›› a contract signed between China’s Shanxi technology and services (METS) sector, to Everpride Pharmaceutical Company and deliver a mission to Cambodia and Vietnam, the School of Medicine at the University of which resulted in agreements between Tasmania on joint research of earthworm Australian companies and local mine extract for use against Alzheimer’s disease operators. Austrade arranged a comprehensive ›› the commencement, in November 2014, of programme, including meetings with key fruit and seafood imports from Tasmania government officials, regulators and mine site by Yonghui Superstores, one of the largest visits. Similar activities between Austrade and supermarkets in China, worth $1.5 million Austmine in New Caledonia have been positively to date. received by Australian METS companies. For more information on Austrade’s work across Austrade’s state and territory directors unit government, see page 99. worked with state and territory governments to ensure a coordinated approach to the Australian Women in Global Business programme Government’s trade and investment agendas. Work included delivering industry seminars, The Women in Global Business (WIGB) briefings and coordinated programmes for programme is another way Austrade engages inbound buyers and investors. In 2015, the state with state and territory governments. This joint and territory directors unit was strengthened by initiative aims to increase female participation in staff returning from overseas postings in Japan, international trade and investment, and deliver India, Indonesia and China. Their firsthand increased economic benefits and job creation market knowledge and experience is highly in Australia. valued by partners and firms looking to develop WIGB provides support to Australian pan-Asian market strategies. businesswomen, allowing them to grow their Austrade’s overseas network can extend businesses internationally through skills and the international reach of state and territory capacity-building seminars; a mentoring governments. For example, by leveraging programme; research on barriers experienced Austrade’s extensive network in China, the by women in exporting; engaging the recipient Tasmanian Government was able to achieve of the annual Beryl Wilson Austrade Scholarship significant outcomes in 2014–15, including: for Women in International Business; and undertaking promotion of businesswomen at ›› a letter of intent signed between Essential major economic development conferences Oils of Tasmania and Beijing Gingko Group around the world. to set up a joint venture for the extraction of bioactives from Tasmanian-grown produce. In 2014–15, there was significant outreach to This is a project with the potential to revitalise the female business community through the the Tasmanian blackcurrant industry Engaging with Developed Asia: Free Trade ›› a memorandum of understanding between Agreements speaker series, which was delivered TasTAFE and China’s Chambroad Group on in partnership with ANZ Global Wealth in cooperation in education and training in the eight Australian cities, attracting more than aged care and hospitality sectors 500 attendees. Two of Austrade’s female trade

Part 02 / Report on performance. Outcome 1 – Programme 1.1 45 commissioners provided keynote presentations Joint study on women in international business on their experiences in Korea and Japan. The second report from a five-year joint study Last year, the Government announced an by WIGB and the University of Melbourne Asia–Pacific Economic Cooperation (APEC) found that Australia’s female international project to enhance the ability of international entrepreneurs are predominantly baby boomers trade promotion agencies to connect women’s who moved rapidly into international growth. businesses to export markets. Austrade worked The report, entitled Women, global trade with the Department of Foreign Affairs and Trade and what it takes to succeed, surveyed to showcase WIGB as a best practice example 416 Australian businesswomen and was released to 11 APEC nations during a three-day workshop in March 2015. The study found that they were in the Philippines in November 2014. quick to embrace global opportunities, with WIGB is undertaking further engagement 42 per cent internationalising their business with trade promotion agencies across the within a year of start-up, and 81 per cent doing APEC region to embed the concept and so within the first five years. promote development of ‘sister’ programmes Almost three-quarters indicated an intention with similar structures and objectives. The to expand into even more markets and none establishment of the first WIGB international intended to scale back their global reach. chapter in Indonesia during the year was a China was the most important target market positive way to build the skills and capacity of for 34 per cent of women surveyed, up from Indonesian businesswomen, and to act as an 18 per cent in 2013, while 52 per cent ranked additional connection between Indonesian and Asia as their number-one priority market. The full Australian exporters. report is available at www.wigb.gov.au.

Participants at the Women in Global Business Indonesia official launch, Jakarta, March 2015. Photo: Women in Global Business.

46 Australian Trade Commission Annual Report 2014–15 02

Beryl Wilson Austrade Scholarship for Women in International Business

speaks Mandarin and Cantonese, and can now add this scholarship to her long list of achievements.

‘I was very surprised to receive the scholarship. I am also very honoured, excited and nervous. It’s a mix of emotions. Receiving this scholarship confirms what I’m doing and the direction I’m heading in—it gives me a lot more encouragement and I’m In February 2015, the Hon Andrew excited for the future’, said Fei. Robb AO MP, Minister for Trade and As part of the scholarship, Fei will also Investment, announced Melbourne student participate in Austrade’s Women in Global Fei Li as the 2015 recipient of the Beryl Business programme and undertake work Wilson Austrade Scholarship for Women in experience in its Melbourne office. In International Business. The scholarship was acknowledging her achievements, Fei was established last year, on the 50th anniversary quick to summarise the importance of Beryl of the appointment of Beryl Wilson as Wilson’s role in paving the way for women Australia’s first female trade commissioner, in business. ‘Beryl Wilson’s experience to encourage women to consider a career in motivates and encourages other women to international business. see what opportunities and possibilities exist The scholarship will support Fei’s completion for them. It’s amazing to know that people of a Master of International Business degree can achieve what they want through hard at the University of Melbourne, which is part work. It’s what you do that leads you there’, of a dual programme run by HEC Montréal, Fei said. a university business school in Canada, Pictured: Fei Li, recipient of the 2015 Beryl Wilson and will see Fei also complete a Master of Austrade Scholarship for Women in International Global Supply Chain Management. Fei holds Business, with the Hon Andrew Robb AO MP, Minister a double bachelor degree in commerce and for Trade and Investment, in Canberra, February 2015. Photo: Austrade. economics, has a background in marketing,

Part 02 / Report on performance. Outcome 1 – Programme 1.1 47 Researching Australia’s internationally of respondents said that exporting related to a active businesses supply contract with an overseas multinational corporation, or the export of intermediate goods Following last year’s major survey of Australian and services into further production processes, internationally active businesses, Australia’s were important to their business. International Business Survey 2014, Austrade again collaborated with Efic, the Export Council Australia’s International Business Survey 2015 of Australia and the University of Sydney in 2015 also provided new insights into the market to produce the Australia’s International Business development activities of respondents. Figure 9 Survey: 2015 report, which conveyed the views shows that the most important activity identified of 1,237 Australian businesses drawn from by respondents to develop international business 19 industry sectors—including 93 subsectors— was visiting overseas customers in person. Other operating across 114 international markets. activities included attending overseas trade shows, using digital channels, online search The 2015 survey confirmed one of the key marketing and advertising, social media and findings of the first survey—that Australian selling via third-party e-commerce websites, internationally active businesses participate such as eBay and Alibaba. in a diverse range of complementary cross- border activities. This goes well beyond Participants were also asked about specific traditional exporting. About 88 per cent of barriers in overseas markets that they survey respondents were involved in exporting, considered their most important and most 50 per cent in importing, and 47 per cent difficult (Figure 10). Consistent with the findings in other international activities,10 including of the 2014 survey, 2015 respondents identified greenfield investment overseas (35 per cent); local language, culture and business practices cross-border mergers and acquisitions (22 per as the most important barriers across overseas cent); international research and development markets. The next most important barrier activities (37 per cent); offshore manufacturing identified by participants was payment issues, of products or components (25 per cent); and followed by regulations that favour local firms, inward investment from international investors and the difficulties faced in understanding (22 per cent). local regulations. With its detailed market and commercial knowledge, Austrade is uniquely While 93 per cent of exporters said exporting able to assist Australian businesses to overcome of final goods and services directly from these ‘behind the border’ barriers to trade and Australia was important or very important, about investment, consistent with legal obligations, 59 per cent also said the same was true for including anti-bribery and corruption laws both in exporting indirectly via foreign sales branches Australia and overseas. or subsidiaries. Participation in global value chains and relationships with multinational corporations were also important channels of international engagement. At least 50 per cent

10 Since most internationally active businesses were involved in more than one activity, totals sum to more than 100 per cent.

48 Australian Trade Commission Annual Report 2014–15 02

Looking ahead, Australian internationally active They also identified their key target markets businesses were relatively optimistic about the for the next two years, with the United States, outlook for their international business in 2015, China and Indonesia topping the list for future with many citing the lower value of the Australian opportunities. The full report is available at dollar as a key contributing factor. www.austrade.gov.au.

Figure 9: Importance of various market development activities in earning international revenue

Visiting overseas customers in person 76% 17% 93%

Growing your own international 38% 35% sales and markting team 73% Overseas promotions campaigns, directly or via an agent 34% 36% 70%

Overseas trade shows 31% 37% 68%

Appointing a new agent/ distributor/partner 33% 32% 65%

Online search marketing and advertising 21% 34% 55%

Social media 14% 33% 47% Very important Moderately important Third-party e-commerce websites 8% 20% 26%

020406080100 Percentage of survey respondents Source: Australia’s International Business Survey 2015.

Figure 10: Most significant barriers to doing business in overseas markets

Local language, culture 29% and/or business practices

Payment issues 10%

Regulations that favour local ﬁrms 9%

Understanding local regulations 8%

Licence or product standard requirements; 6% tariﬀs, quotas and import duties

051015202530 Percentage of survey respondents Source: Australia’s International Business Survey 2015.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 49 Promoting Australian education and training internationally Austrade supports Australia’s international ›› delivering high-quality and timely market education sector by promoting Australia as an research, intelligence and services to the international education and training destination international education sector through the and a provider of high-quality education and Market Information Package website training services; helping to grow demand ›› identifying and qualifying opportunities for Australian education and training; and for Australian international education and contributing to the development of a sustainable training providers, including cross-industry international education sector. and transnational education and training Austrade works to accomplish these goals opportunities, especially in Asia and other through its international education and training growth and emerging markets promotion framework. It focuses on: ›› executing an effective engagement strategy ›› improving perceptions of Australia’s with offshore education agents international education and training sector ›› undertaking effective stakeholder through measures such as the Future engagement with key government and non- Unlimited brand and providing accurate government organisations and individual information to potential international students institutions, both onshore and offshore. through the Study in Australia website

Developing global human capital in Japan

With a commitment to increasing the numbers of Japanese students studying overseas, and an ability to create platforms across Japan to market study abroad, a strategic alliance with the Eiken Foundation has significantly improved Austrade’s capacity to promote Australia’s international education and training sector in Japan.

A particular focus of the Austrade–Eiken strategic alliance is to encourage Japanese students to In October 2014, Austrade and the Eiken consider studying in Australia from a young age. Foundation of Japan formalised an alliance Austrade has gained the backing of five state to promote studying in Australia to Japanese government education departments, with 533 high students and their families. It is the only such schools in Western Australia, New South Wales, agreement that the Eiken Foundation has Queensland, South Australia and Victoria now entered into with a foreign government agency. recognising Eiken Foundation qualifications. The foundation administers Japan’s most widely Pictured (L–R): Leonie Muldoon, Austrade; Bruce Miller, recognised English language test, and has access Australia’s Ambassador to Japan; Koichi Matsukawa, to 60,000 high school teachers nationwide. It Chairman, Eiken Foundation; and Mitsuo Kimura, actively supports the Japanese Government’s Executive Director and Secretary-General, Eiken Foundation, at the signing of the collaboration agreement goal of developing the nation’s stock of global in Tokyo, October 2014. Photo: Eiken Foundation of human capital. Japan.

50 Australian Trade Commission Annual Report 2014–15 02

International education operating context Developing the Australian International Austrade’s operating context in relation to Education 2025 strategy international education is discussed below, In 2014–15, Austrade initiated a long-term market followed by examples of achievements relating development plan for the sector called Australian to its deliverables and key performance International Education 2025, and embarked on indicators for the promotion of Australia’s a comprehensive programme of consultation international education and training sector with the Australian education and training sector. (see tables 2 and 3 on pages 19–31). Australian International Education 2025 will align with the draft National Strategy for International International education sector performance Education, which was launched in April 2015 Demand for Australia’s international education by the Hon Christopher Pyne MP, Minister for sector continued to increase in 2014–15 across Education and Training. It will play a key role in the higher education, vocational education the implementation of the draft strategy’s vision and training, schools and English language for the international education sector. sectors, following strong growth experienced in During April 2015, Austrade held 11 consultations 2013–14.11 There was a 12 per cent increase in in nine locations around Australia, involving enrolments and a 17 per cent increase in course 800 members of the education and training, commencements in the previous year. This government and business sectors. The growth was reflected in the export value of the consultations considered what the long- sector, which increased by $2.1 billion in 2014 term aspiration for the sector could be and (Figure 11). the actions that could be undertaken in individual states, territories and regions for Australia’s education exports, 2005 Figure 11: implementation. Recommendations arising to 2014 from the consultations will be considered 20 by senior leaders from government and the $17.6 education and business sectors at a roundtable $16.7 $16.7 $15.8 15 $15.1 $15.5 $14.3 expected to be convened by the Hon Andrew $11.9 Robb AO MP, Minister for Trade and Investment, 10 $10.3 $9.4 in August 2015.

5 Australian International Education 2025 will Value of exports ($ billion) provide concrete steps to enable Australia to 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 sustainably increase the supply of education and training services to international students Source: ABS, International trade in goods and services, coming to study in Australia, and to significantly Australia, cat. no. 5368.0. increase the offshore delivery of education and The sector shows strong growth prospects training services. The plan is expected to be for 2015–16, following a 7 per cent increase in finalised in late 2015. international student course commencements in the first half of 2015.

11 Department of Education and Training 2014 statistics, December.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 51 Members of the education and training sector consider ideas The internationally recognised Future Unlimited branding at consultations held by Austrade to inform the Australian in use at the Australia pavilion at the China International International Education 2025 market development plan for Education Exhibition Tour in Beijing, March 2015. Photo: the sector, in Perth, April 2015. Photo: Austrade. Austrade.

Improving perceptions of Australia’s integral to Austrade’s education activities across international education sector its global network. It is used at major events such as the Australia pavilion at the annual Austrade continued to expand the reach of China International Education Exhibition Tour the Future Unlimited brand through its brand (one of the largest education events in China); licensing programme, with the number of the annual NAFSA conference (the leading Future Unlimited brand licensees increasing by international education conference in the United 25 per cent, from 315 at 30 June 2014 to 394 States and Canada); the annual conference at 30 June 2015. This includes 281 Australian of the European Association for International institutions and 113 overseas stakeholders and Education; and Austrade’s Future Unlimited education agents. education exhibitions around the world. Future Unlimited licensed Australian education During 2014–15, Austrade streamlined processes and training institutions accounted for around for Future Unlimited licence renewals, making 400,000 students in the top 200 international it easier for licensees and more efficient for education and training providers in Australia Austrade to manage licence extensions. in 2014. Updated electronic marketing collateral was also Introduced in June 2011, the Future Unlimited made available to licensees. brand is now recognised internationally and is 394 400,000 1.6M+ 85%

overseas students enrolled of visitors to the Study in Future Unlimited brand in the top 200 education visitors to the Study in Australia website were licensees at 30 June 2015 and training providers in Australia website from overseas Australia in 2014

52 Australian Trade Commission Annual Report 2014–15 02

In addition to establishing an international brand delivered through Austrade’s online subscriber presence for Australia’s international education service, the Market Information Package (MIP). sector, Austrade also administers the Study in In 2014–15, subscriptions to the MIP service Australia website, www.studyinaustralia.gov.au. increased by 12 per cent to 314. Endorsed by the Council of Australian In 2014–15, there were 518 articles published Governments as the official source of information on the MIP, including 249 market opportunities, for international students, the website provides 165 market updates, 10 market snapshots, six details of all courses available to international country research reports and nine data insights. students, as well as information about studying This was consistent with the number of articles and living in Australia. published in 2013–14. In 2014–15, visitors to the website grew by Since October 2013, the use of Twitter to almost 14 per cent to 1,650,000, with around publicise new MIP articles has been well 85 per cent visiting from offshore. The received, with the number of MIP Twitter website was enhanced with new content and followers growing to 1,103 at 30 June 2015. functionality, including the ability for students to Austrade also publishes a free e-newsletter, create their own personal guide to studying and MIP Weekly, which highlights the latest articles living in Australia. and drives traffic to the MIP website. In 2014–15, Social media is an essential means by which the number of recipients of this e-newsletter Austrade extends the reach and impact of the increased by 21 per cent, from 4,255 to 5,145. Study in Australia website, as well as its other During the year, Austrade continued to make student engagement activities. Sharing content, enhancements to the MIP, including the addition news, updates, events and student experiences of video content of education market insights, through Facebook, Twitter, YouTube and original research reports, market snapshots, Weibo has provided increased opportunity for and data and trend analysis. In August 2014, engagement between Austrade and international Austrade published an original research report, students. The Study in Australia Facebook page called Return to growth, which focused on had 202,590 likes in 2014–15, and the Study the growth trend for Australian international in Australia Twitter account reached 11,406 education and training during 2013–14. Return to followers. There were 33,856 views of the Study growth was the most popular MIP data report in in Australia YouTube channel in 2014–15. 2014–15, with more than 1,400 page views and numerous external references.12 Delivering market research and intelligence

Austrade uses its extensive offshore network to identify opportunities and market intelligence to help Australian education and training providers expand their services globally. Market intelligence, analysis and opportunities are

12 For example, the report was referenced in Alan Olsen 2014, ‘Education as an export to be $30b within six years’, Australian Financial Review, 6 October.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 53 Enhancing the education sector’s ›› an opportunity for a partnership for corporate understanding of international student training with a banking institution in India, data trends published in the MIP in February 2015. Responses were received within hours An important feature of the MIP is the of publication and continued over the international student data provided by the following days, with 25 per cent of Australian Department of Education and Training and universities responding to the opportunity the Department of Immigration and Border ›› an opportunity for the delivery of Protection. To enhance access to this often environmental management training with complex data and deliver greater insight the Guangdong Department of Organisation on trends to the education sector, Austrade in China, published in the MIP in 2014. developed a data visualisation tool for MIP This led to four expressions of interest and subscribers called MIP Orbis. This tool enables subsequently an agreement with an Australian deeper analysis and visual manipulation of institution in 2015 student enrolment and commencement data, ›› an opportunity to deliver joint masters and provides comparisons with complementary programmes with the Vietnam data sources, such as student visa applications Commerce University, published in the and grants. Austrade identified the need for this MIP in December 2013. This resulted in data tool from feedback within the 2014 MIP 11 expressions of interest from Australian survey, as well as subscriber consultations and universities and two Australian universities website analytics. signing a memorandum of understanding for the delivery of joint masters programmes in Identifying opportunities for Australian commerce and marketing international education and training providers ›› an opportunity for Australian education Austrade also identifies opportunities for institutions to partner with institutions in Australian international education and training China to deliver teacher training, study tours providers to increase demand, particularly and the recruitment of English language through cross-industry and transnational teachers, published in the MIP in 2013. education and training opportunities in Asia This resulted in 27 expressions of interest. Successful Australian institutions provided and other growth and emerging markets. training for 454 teachers in Beijing between These opportunities are also accessed through October 2013 and March 2015 in preschool the MIP. Examples of successful outcomes and high school education and also in multiple from opportunities promoted in the MIP in subject teaching. 2014–15 include:

314 518 1,103 5,145

subscribers to Austrade’s articles published on the recipients of Austrade’s Market Information MIP Twitter followers MIP website MIP Weekly e-newsletter Package (MIP)

54 Australian Trade Commission Annual Report 2014–15 02

Engaging offshore education agents Data collected from the survey will provide essential insights into global education markets, Education agents, contracted by Australian including international student trends, regional education institutions, play a critical role in analysis, cross-market comparisons and the recruitment of international students, as international student intentions. This is the first well as the promotion of Australia as a high- time Austrade has conducted a centralised quality international education destination. global agent survey to allow for intensive Austrade maintains strong relationships with a cross-market comparison. wide network of education agents through its specialised agent newsletters, regular seminars, The survey found there was a positive long-term and related events held across its network outlook for Australia’s international education of offices. sector, with 65 per cent of all agents surveyed In 2014–15, Austrade produced an in-depth expecting strong, ongoing growth in placements assessment for Australian education providers to Australia in the next five years. on education agent activity in the Japanese market. The Japan agent engagement report: Engaging other education Realising productive partnerships was compiled sector stakeholders from survey results taken from 19 Japanese A major part of Austrade’s engagement with education agents, from industry reports, and education stakeholders was through its work from discussions with agents at networking on the Australian global alumni engagement events. The publication was distributed through strategy. Austrade collaborated with the the MIP, and received 316 page views. Department of Foreign Affairs and Trade and Education agents also play a key role in the Australian universities to contribute to the continuing expansion of the Future Unlimited strategy, which aims to maximise the economic brand. By working with reputable education and diplomatic advantages that alumni, agents and their associations in key markets, institutions and governments can accrue from Austrade has been able to increase the global more collective engagement. The strategy is reach of the Future Unlimited brand through expected to be launched in the second half its brand licensing programme. The number of of 2015. international education agents and associations Australia’s international student alumni are licensed to use the brand increased from 122 to estimated to total around 2.5 million and play 144 in 2014–15, covering 61 countries. a key role in advancing Australia’s economic diplomacy. Through their success, they Austrade’s global education agent survey demonstrate the values that underpin the Future In April 2015, Austrade conducted its first Unlimited brand for Australian education and global survey of education agents engaged by training, and support Austrade’s work promoting Australian education institutions. The survey Australia internationally as a destination for high- targeted nearly 1,000 education agents who quality education and training services. were located across 20 markets. It was designed In October 2014, as part of its client engagement to determine the most accurate and up-to-date programme, Austrade held a transnational market intelligence about future demand for education roadshow, Responding to Growth, Australian education and training, and inform in Brisbane, Melbourne, Sydney and Perth. The strategic planning for student recruitment.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 55 Brazil education mission to Australia formalises stronger bilateral relationship

Australian institutions, including universities and the Commonwealth Scientific and Industrial Research Organisation (CSIRO), work with industry on applied research projects, with a view to exploring where Australia and Brazil can best collaborate and build alliances. The delegates visited federal and state government departments and agencies, industry skills councils, VET institutes, universities and research institutes, In March 2015, Austrade organised a high-level as well as Australian businesses in Canberra, Brazilian vocational education and training Melbourne and Hobart. (VET) mission to Australia, which comprised senior representatives from the Brazilian The mission’s key outcomes included Ministry of Education, and advisers from the signing of an updated memorandum Brazilian VET public institutes. The mission of understanding on education and was the result of a long-term opportunity training between Australia and Brazil, and identified by Austrade for Australian VET memorandums of understanding with CSIRO providers to assist in the development of and TAFE Directors Australia. Brazil’s workforce through skills and training, Pictured: Patricia Monteiro, Austrade (third from left) and and to encourage stronger linkages between Ollie Shugg, Austrade (second from right), with Professor Paulo de Souza, Scientific Director, CSIRO Hobart (far Australian and Brazilian VET organisations. right), and members of the Brazilian VET mission to Brazilian delegates gained a broad overview Australia on a visit to the Marine National Facility in Hobart, March 2015. Photo: Austrade. of the VET system in Australia, including how

purpose of the roadshow was to encourage have included publications distributed on the education and training providers to diversify by Market Information Package website, such as delivering their programmes offshore, in addition Latin America—transnational education and to recruiting international students to Australia. A new model for VET growth in South Asia, as well as the Australia–Sichuan Aged Care and The roadshow included presentations from Health Vocational Education and Training Forum Austrade staff from Latin America, Myanmar, held in China in April 2015. Saudi Arabia and South Asia, highlighting opportunities for the Australian education During the year, Austrade also worked closely sector to diversify source markets, regions, with other Australian Government agencies, disciplines and delivery modes. Participants and state and territory governments, to achieve were encouraged to consider opportunities to its education and training outcomes. For more deliver tailored training in addition to formal information on Austrade’s work across all levels Australian qualifications. Follow-up activities of government in Australia, see page 99.

56 Australian Trade Commission Annual Report 2014–15 02

Attracting productive foreign direct investment to Australia As Australia’s foreign direct investment Austrade’s promotion and attraction work promotion agency, Austrade leads a national, extends across its global network, but is focused whole-of-government strategy for promotion and primarily in 32 key markets where opportunities facilitation of foreign investment into Australia. are greatest. Austrade also works closely with To deliver the greatest value to the Australian professional services firms and industry partners economy, Austrade focuses on foreign direct to win foreign investment for Australia. Figure 12 investment that contributes to economic is an illustration of Austrade’s investment prosperity through creating and retaining attraction process. Australian jobs, developing new industries and infrastructure, introducing new technologies and Figure 12: Austrade’s investment attraction skills, encouraging innovation and competition, life cycle raising productivity, and strengthening Australia’s overall economic linkages with the world. Policy, research and strategy In order to achieve its deliverables and key performance indicators for investment attraction, Austrade:

›› targets potential investors, including Aftercare and Investor at Promotion introducing them to state and reinvestment the heart of our work territory governments ›› promotes Australia’s economic credentials and capabilities ›› promotes specific investment opportunities Facilitation Attraction ›› explains the market and regulatory environment ›› cooperates with state and territory Austrade working closely with federal partners, states and territories and the private sector governments to facilitate investment Austrade lead into Australia. Austrade working closely with states and territories Within this framework, Austrade works in All stages cooperating closely with the Department of partnership with state and territory governments Foreign Affairs and Trade. to implement strategies around five ministerially agreed national investment priorities. These Investment operating context priority sectors are: Austrade’s operating context in relation to foreign ›› agribusiness and food direct investment is discussed on the next ›› resources and energy page, followed by examples of achievements relating to its deliverables and key performance ›› major infrastructure indicators for the attraction of foreign direct › tourism infrastructure › investment to Australia (see tables 2 and 3 on ›› advanced manufacturing, services pages 19–31). and technology.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 57 Australia’s investment environment Australia is a global leader and important contributor to global growth in five key sectors— Australia’s inward foreign direct investment (FDI) agribusiness, education, tourism, mining and stock reached $688.4 billion in 2014, double the wealth management—and ongoing demand level of 2005. The European Union (including the across these sectors is expected to drive trade United Kingdom) and the United States remain and investment. dominant sources of FDI for Australia, with totals of $170 billion and $163 billion respectively. Major Australia is also renowned globally for its Asian nations are fast-growing sources of FDI, innovative capabilities with world-class with China’s FDI stock recording a compound scientific and academic institutions, high levels annual growth rate over the past five years of of investment in research and development, 27 per cent, followed by Korea at 20 per cent modern ICT infrastructure and strong intellectual (albeit from a low base), ASEAN at 14 per cent property protection. and Japan at 8 per cent. The Australian labour force is one of the most As a percentage of domestic GDP, FDI stock in educated, multicultural and multilingual in Australia remained strong at 39 per cent in 2014, the world. Around 40 per cent of Australia’s sharply up from 29 per cent of GDP in 2008. workforce holds a tertiary qualification, and According to the United Nations Conference on more than a quarter of Australia’s workers were Trade and Development,13 Australia’s global share born overseas. of FDI, measured in US dollars, was 2.2 per cent Austrade publishes this information and other in 2014, compared with a 2.1 per cent share six research in its various sector-based publications, years ago. This improvement was partly due to the annual Why Australia—Benchmark Report Australian FDI growth—84 per cent over the six and monthly investment newsletter. years to 2014—being stronger than the average for developed economies (61 per cent). Delivering investment outcomes Australia’s economic resilience, together with its Austrade, along with its key partners in state strategic location in the booming Asia region, and territory governments and industry sectors, strong global trade and investment ties, a proven contributed to 92 investment outcomes during track record of innovation, skilled labour force 2014–15, with recorded capital expenditure of and an open, friendly and outward-looking around $7.75 billion and the creation of around business environment, continue to present strong 17,000 jobs. investment opportunities for Austrade to promote and facilitate. North America (United States and Canada) was the largest source of inward investment Australia’s economy has achieved a real GDP outcomes with 35 per cent of the total. annual average growth rate of 3.3 per cent over the past 23 years, and its forecast economic This was followed by Western Europe (including growth rate between 2015 and 2020 is the the United Kingdom) with 23 per cent. highest among major advanced economies. Northeast Asian markets collectively accounted for 28 per cent of outcomes. Figure 13 shows the

13 United Nations Conference on Trade and Development 2015, distribution of investment outcomes assisted by World Investment Report 2015: Reforming international investment Austrade in 2014–15. governance.

58 Australian Trade Commission Annual Report 2014–15 02

Among the agreed investment priority sectors, Figure 13: Austrade-assisted investment advanced manufacturing, services and outcomes by source market, 2014–15 technology accounted for 42 per cent. The resources and energy sector accounted for Korea Brazil 1% 19 per cent, major infrastructure accounted for 1%

17 per cent, tourism infrastructure accounted ASEAN for 7 per cent, and the agribusiness and food 5% sectors accounted for 11 per cent. Non-priority Japan sectors accounted for 4 per cent of outcomes. 10% North America Figure 14 shows the industry sector distribution 35% India of investment outcomes assisted by Austrade. 8% To deliver investment outcomes, Austrade manages a comprehensive pipeline of qualified investors and investor leads, which are shared Greater China(a) with state and territory governments. During 17% 2014–15, Austrade shared 312 investor leads with state and territory governments, including Western Europe and UK 23% 91 site visits by investors.

The traditional FDI markets of North America (a) Includes Hong Kong and Taiwan. and Western Europe continue to dominate the investment pipeline, although investor interest Figure 14: Austrade-assisted investment from China and India is growing. From an outcomes by industry sector, 2014–15 industry perspective, 94 per cent of qualified investor leads are within the investment priority industries—25 per cent in resources and energy,

16 per cent in agribusiness and food, 27 per cent Non- priority Tourism Agribusiness in advanced manufacturing, services and 4% infrastructure and food technology, 8 per cent in tourism infrastructure 7% 11% and 18 per cent in major infrastructure.

Achieving priority milestones Resources and energy Advanced Recognising the long-term nature of investment 19% manufacturing, services and decision-making, Austrade also recorded technology 61 investment priority milestones during 42% the year. These tangible demonstrations of commitment to the Australian market are Major infrastructure an important indicator of Austrade’s long- 17% term success in promoting Australia as an investment destination.

Milestones generally provide an indication of expected future investment. In 2014–15, Austrade-supported investment milestones

Part 02 / Report on performance. Outcome 1 – Programme 1.1 59 included support for investors submitting bids closely with state and territory governments and or expressions of interest to tenders, signing key industry stakeholders, Austrade identified non-disclosure agreements with Australian and qualified 39 investor-ready projects across institutions and research centres, and assisting Australia within the five investment priority multinational companies to expand their sectors. These projects were distributed presence in Australia. where appropriate, either as part of ministerial roundtables or one-on-one meetings with Undertaking research projects potential investors. In 2014–15, Austrade undertook a review of Developing capability Australia’s value proposition across three investment priorities—advanced manufacturing, To further enhance capability across Austrade services and technology; resources and energy; and its key stakeholders at Australian and and agribusiness and food. The aim was to state and territory government levels, in better promote and attract investment into these 2014–15, Austrade again provided its Winning areas. The research covered global investor Investment in Australia training courses in responses to current investment drivers and the Adelaide, Melbourne and Darwin, as well role of Australia in those responses. as one dedicated course for NSW Trade & Investment. Additionally, an investment attraction The investigation provided Austrade with a masterclass for Austrade’s senior investment much stronger understanding of Australia’s specialists and senior onshore staff was held in value proposition for investors and the capacity Sydney in May 2015. to adjust that value proposition more quickly and accurately as investment drivers change. During the year, Austrade developed a The research also strengthened capability comprehensive investment capability within Austrade’s global network to articulate development strategy for its employees investment opportunities and win foreign to ensure they had access to training and investment in these sectors. development opportunities that would enhance their knowledge, skills and expertise. A key Identifying the investment pipeline element of the strategy was sector-based workshops, held in May and June 2015. These An important new programme of work for workshops brought together key investment Austrade during 2014–15 was the identification managers from across Austrade’s network to of a pipeline of projects that illustrate investment enhance their understanding of Australia’s opportunities available to foreign investors capability, regulatory environment, market entry considering investing in Australia. Working models and investment opportunities.

92 $7.75B 17,000 61 312 investment in reported capital investment leads jobs created as a outcomes delivered expenditure investment shared with state result of investment by Austrade and its generated from milestones recorded and territory outcomes partners investment outcomes governments

60 Australian Trade Commission Annual Report 2014–15 02

Promoting investment in Australia for Agriculture; and the Hon Jamie Briggs MP, Assistant Minister for Infrastructure and In July 2014, Austrade organised the Australian Regional Development. Investment Forum in Sydney, bringing together more than 100 leading executives from around The forum provided significant insights into 15 investment markets, to consider the benefits what drives foreign investors’ decisions and and barriers to investing in Australia. The concerns. It also strengthened Australia’s forum included four investment roundtables ‘open for business’ message to potential and was jointly hosted by the Hon Andrew investors. Austrade’s engagement with invited Robb AO MP, Minister for Trade and Investment; organisations before and after the forum the Hon Joe Hockey MP, Treasurer; the Hon contributed to 14 of the outcomes achieved with Ian Macfarlane MP, Minister for Industry and a total investment value of around $2 billion and Science; the Hon Barnaby Joyce MP, Minister 11 priority milestones.

Austrade assists infrastructure investment from Europe

CEO of Salini Impregilo, and the Hon Julie Bishop MP, Minister for Foreign Affairs, in Milan. In November 2014, Matteo Renzi, Prime Minister of Italy, visited the skytrain bridge site with the Hon Mike Baird MP, Premier of New South Wales, and the Hon Gladys Berejiklian MP, the then NSW Minister for Transport. Austrade supported this visit in Austrade assisted a significant investment by partnership with the NSW Government. Italy’s Salini Impregilo, a global construction firm. The company was awarded the contract Salini Impregilo has also been tendering for for the design and construction of the a number of other major projects in Australia. skytrain bridge and related civil works that The company regularly seeks Austrade’s represent one of the main sections of Sydney insights in Italy and Australia to evaluate Metro Northwest (formerly the North West the best options for its ongoing expansion Rail Link). in Australia.

Since 2011, Austrade has provided Salini In 2014, the group’s annual turnover was Impregilo with in-depth information about the €4.2 billion, an increase of 10.7 per cent infrastructure market and project pipeline in on 2013. Its order backlog is more than Australia. Austrade has supported numerous €32.4 billion, and more than 80 per cent of site visits with high-level introductions to revenues are generated abroad.

government and private sector stakeholders. Pictured: Cav. Pietro Salini, CEO, Salini Impregilo, and the Hon Julie Bishop MP, Minister for Foreign Affairs, in In October 2014, Austrade facilitated a Milan, October 2014. Photo: Giorgio Vianini. private meeting between Cav. Pietro Salini,

Part 02 / Report on performance. Outcome 1 – Programme 1.1 61 Ministers from state and territory governments in Melbourne, through which Austrade engaged also attended the forum, including the Hon with five investors who had strong interests Louise Asher MP, Victoria’s Minister for Tourism; in Australia. the Hon Matthew Groom MP, Tasmania’s Also in September 2014, Austrade worked Minister for State Growth; the Hon Martin with Dairy Australia and the Victorian, South Hamilton-Smith MP, South Australia’s Minister Australian and Tasmanian governments to for Trade and Investment; and the Hon Dominic provide a joint presence at the International Perrottet MP, NSW Minister for Finance and Dairy Investment Forum in Melbourne. Austrade Services. Feedback from industry participants identified 12 investors with strong interests in was very positive and Austrade continues to Australia. Following this event, Austrade again engage with attendees. worked with Dairy Australia to develop a Building In September 2014, Austrade collaborated Dairy Investment Coordination workshop with state and territory governments to deliver hosted by Dairy Australia, also in Melbourne, in a whole-of-government presence at the February 2015. The workshop was attended by International Mining and Resources Conference 30 industry participants, and delivered insights from state and territory stakeholders on trends and developments in the dairy sector.

In December 2014, Austrade hosted a high-level visit to Australia by the China Entrepreneur Club, whose exclusive membership includes China’s leading privately owned companies. This visit allowed Austrade to demonstrate Australia’s strengths as an investment destination, and highlight key investment opportunities. It included a tour of the Barangaroo development site in Sydney.

In January 2015, the Austrade-organised Australia Business Week in India included two investment programmes on innovation and resources and energy. Sixty-three delegates from Australia’s resources and energy sector presented a range of investment opportunities to India’s top private and public sector energy and steel producers. Separate roundtables and boardroom briefings, involving 37 Australian delegates, discussed business opportunities in Australian research and innovation with Australia Unlimited branding was used to consolidate a joint groups such as Tata, Tata Consultancy Services, presence when Austrade worked with state and territory Mahindra, Aditya Birla and Motherson. For more governments and industry stakeholders at the International Dairy Investment Forum in Melbourne in September 2014. information on the Australia Business Week in Photo: Dairy Australia. India, see page 84.

62 Australian Trade Commission Annual Report 2014–15 02

Investor roundtables were also held as part of the Match Australia programme in early 2015, including a roundtable hosted by Mr Robb in January, coinciding with the Australian Open Tennis quarter final. This roundtable included eight VIP investors from five companies from Korea, Japan, China and the United Kingdom, and focused on infrastructure, tourism, and agribusiness and food investment priorities.

Coinciding with the AFC Asian Cup final on Representatives from the China Entrepreneur Club visit the 31 January 2015, Mr Robb also hosted an Barangaroo site in Sydney in December 2014. Photo: Austrade. investor roundtable with 20 VIP investors from 12 companies, primarily from Gulf Cooperation Advancing the investment proposition in Council countries, as well as two from China. Northern Australia The roundtable focused on the resources The Government is committed to the and energy, tourism, agribusiness and food, development of Northern Australia to capitalise and major infrastructure investment priorities. on its close proximity to the booming economies In February 2015, Mr Robb hosted another of North Asia and Southeast Asia, and the rapidly roundtable, this time with Indian investors at developing economies of the tropics. the ICC Cricket World Cup. Mr Robb hosted a The Government’s White Paper on Developing total of 29 investor roundtables in 10 countries Northern Australia has a strong focus on creating throughout 2014–15. the right conditions for private sector investment, In June 2015, Austrade led a significant innovation, enterprise growth and business cross-government presence at the World formation. Austrade played a key role in the Gas Conference in Paris. As a key sponsor development of the white paper, using its global of the event, Austrade, in collaboration with networks and expertise to bring an investor’s the Department of Foreign Affairs and Trade, perspective to developing policy on the north the Department of Industry and Science, the as a trade and investment gateway. Austrade Queensland Government and the LNG 18 also seconded a senior team member from its Conference, undertook a range of initiatives to investment division to the white paper taskforce demonstrate Australia’s competitive advantages to provide business and commercial insights. as an oil and gas investment destination. The During 2014–15, Austrade began developing Hon Julie Bishop MP, Minister for Foreign the Northern Australia Investment Forum, Affairs, Austrade’s Senior Trade Commissioner, a showcase for investment opportunities in Frankfurt, and Austrade’s Senior Investment Northern Australia. The forum, taking place in Specialist for Resources and Energy engaged November 2015, will be an invitation-only event with important decision-makers from companies to highlight investment opportunities across identified as potential investors, as well as those Northern Australia to key global investors. that have already invested in Australia, and are Work on the forum, with the governments of considering future projects. Queensland, the Northern Territory and Western

Part 02 / Report on performance. Outcome 1 – Programme 1.1 63 Austrade assists Japan–Australia health research partnership

that underlie gastrointestinal diseases and develop new, highly innovative approaches to their treatment.

The research partnership reflects more than four years of engagement with Takeda by Austrade in Japan and Australia, including support for a number of site visits, and introductions to state governments, Australian Japan’s largest pharmaceutical company, research institutes and biotechnology Takeda, and Australia’s Monash University industry contacts. have formed a strategic research alliance to Dr Tetsuyuki Maruyama, General Manager, develop new medicines for the treatment of Pharmaceutical Research Division, Takeda, gastrointestinal diseases and disorders. said the company’s drug discovery unit The research programme will build on is highly specialised and ‘is actively work already undertaken by the Monash seeking to leverage the best scientific Institute of Pharmaceutical Sciences to and pharmaceutical expertise all over the better understand gastrointestinal disorders, world’. Takeda was particularly impressed potentially leading to powerful new therapies. by the Monash team, which has a proven The institute’s expertise in nanomedicine track record for collaborative delivery of will be used to deliver drugs to the source of clinical candidates.

disease within the body. Funding from Takeda Pictured: Scientists at Takeda working on the will enable scientists from both partners to development of new medicines. Photo: Takeda. collaboratively research the mechanisms

Australia, has proceeded in parallel with the agreements like the Trans-Pacific Partnership, development of the white paper. In June 2015, offer Australia the opportunity to take advantage the Government released the Northern Australia: of Northern Australia’s untapped potential to Emerging opportunities in an advanced integrate with the Asian and tropical economies. economy report that demonstrates the breadth Austrade continues to develop a dynamic of opportunities available to potential investors pipeline of investment opportunities for from across the world who are keen to develop Northern Australia. links with integrating Asian and tropical markets.

Recently negotiated free trade agreements with China, Korea and Japan, existing free trade arrangements with Singapore, Thailand, Malaysia and ASEAN as a whole, ongoing negotiations with India and Indonesia, and regional

64 Australian Trade Commission Annual Report 2014–15 Austrade’s senior investment specialists 02

Since July 2014, five senior investment Notable achievements by the senior investment specialists have been appointed to Austrade specialists during 2014–15 included: from the private sector to add to Australia’s ›› facilitation support for the $1.45 billion capacity to attract foreign investment. Each acquisition of Primo by JBS specialist brings deal-making and facilitation ›› proactive promotion of the infrastructure asset experience, as well as deep expertise in their recycling initiative respective sectors that aligns with the five › a roundtable of key interested parties on investment priorities. The specialists work › international medicines hand in hand with Austrade’s domestic and overseas networks, as well as state and territory ›› capability mapping and identification of governments, to win productive foreign direct investment opportunities in Northern Australia, investment for Australia. particularly in resources and agribusiness ›› capability mapping and identification of investment opportunities in the life sciences, particularly in infectious and tropical diseases.

Tony Eyres

Senior Investment Specialist Resources and energy

Tony Eyres has a strong background in global capital markets, covering investment banking, capital raising and advisory roles to corporate and government clients. He has engaged with investors across Asia, the United States and Europe, including large institutional investors, such as pension funds, specialist private equity firms and high- net-worth individuals.

Immediately prior to joining Austrade, Tony was an executive director with UBS Global Asset Management in Sydney. This followed 20 years working in and alongside corporate and financial entities, non-government organisations and government agencies in Australia, and in New Zealand with Fonterra, a global fast-moving consumer goods company.

Tony has a Bachelor of Science (Agriculture) from the University of Western Australia and was awarded a Churchill Fellowship for travel to the United States, the United Kingdom and Europe in 2000. He maintains a passion for rural and regional Australia, and an understanding of the importance of investment, including in infrastructure, to generate growth and employment.

Tony brings to Austrade a strong strategic acuity, an impressive depth of knowledge of industry supply chains and a strong alignment with the Government’s investment agenda. At Austrade, Tony is focused on the resources and energy sectors.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 65 Paul Field

Senior Investment Specialist Advanced manufacturing, services and technology

Paul Field has an extensive background in the life sciences industry, having facilitated commercial deals in areas such as novel therapeutics, biomarkers, medical devices and other technologies developed by Australian biotechnology companies and research institutions. At Austrade, he is focused on attracting investment in advanced manufacturing, services and technology.

Previously, Paul was Executive Chairman at Bio-Link Australia; CEO of Bio-Link Partners Limited; Biotechnology Director at the Australian Technology Park; Commercialisation Manager at the University of Technology, Sydney; and Marketing Manager for Cellabs Pty Ltd, an Australian immunodiagnostics company, which included a posting to Munich. He is currently a non- executive director of the Cooperative Research Centre for Living with Autism Spectrum Disorders (Autism CRC), and was, until recently, a non-executive director of the ANZ Breast Cancer Trials Group Limited.

David Watson

Senior Investment Specialist Agribusiness and food

David Watson is an experienced food industry executive. He has worked in senior executive roles at Mars Inc. in Dubai, where he held a regional role for Africa, India and the Middle East; and more recently at Mars Inc.’s head office in Washington DC, where he was part of the management team responsible for the chocolate division globally. In those roles, David was actively involved in investment decisions, so he understands the investment drivers for a global food company. At Austrade, he is fittingly focused on attracting investment in agribusiness and food.

David holds Master of Law, Bachelor of Law and Bachelor of Arts degrees from the University of Sydney. In his legal career, David was a partner at law firm Minter Ellison in its New York and Sydney offices, where he specialised in cross-border mergers and acquisitions.

David’s board experience includes roles as a non-executive director at Serco Asia Pacific, a director of Mars Superannuation, Chairman of Mars Australia, and a director of the Australian Food and Grocery Council.

66 Australian Trade Commission Annual Report 2014–15 02

Hugh Funder

Senior Investment Specialist Major infrastructure

Hugh Funder holds a Master of Business Administration from Sciences Po in Paris, a Master of Public Policy from Georgetown University, and a Bachelor of Arts from the University of Melbourne. He brings a depth of knowledge and experience in state government policy, particularly public–private partnerships. Hugh comes to Austrade from Lend Lease Engineering, where he was Manager of Business Development.

Earlier in his career, Hugh held structured finance and infrastructure advisory roles at ABN AMRO and Royal Bank of Scotland, where he worked to inform potential investors of market possibilities. He has also been chief of staff to two federal ministers and a state minister. At Austrade, Hugh is focused on attracting investment in major economic and social infrastructure.

Karen Wales

Senior Investment Specialist Tourism infrastructure

Karen Wales has more than 20 years’ experience in the hotel and tourism industry, with extensive knowledge of the Asia–Pacific hotel investment market. Immediately prior to joining Austrade, Karen was Executive Vice President, Research and Consulting for Jones Lang LaSalle. In this role, Karen oversaw the Asia–Pacific research business and provided consultancy services to the Pacific hotel market. She was previously a hotel financial consultant with Dransfield Hotels and Resorts and was involved in the acquisition, development and asset management of hotel resort management businesses across Australia.

Karen holds a Master of Business Administration from the Australian Graduate School of Management, University of New South Wales, and a Bachelor of Combined Studies from Newcastle University in the United Kingdom (majoring in history and politics). This wealth of experience is instrumental in her role at Austrade, where she is focused on attracting offshore investment in tourism infrastructure.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 67 Strengthening Australia’s tourism industry Austrade’s role in strengthening Australia’s and industry stakeholders with information tourism industry is to develop policy, manage to help underpin tourism policy and planning programmes and provide research to grow and strengthen investment, marketing and Australia’s tourism market share. Austrade’s business decisions. tourism and investment divisions work together with Tourism Australia to promote, attract and Tourism operating context facilitate foreign direct investment into tourism Austrade’s operating context in relation to infrastructure. Austrade aims to influence key tourism is discussed below, followed by policy decision-makers to create an environment examples of achievements relating to its that supports investment, enhanced productivity deliverables and key performance indicators for and sustainable growth in the visitor economy. strengthening Australia’s tourism industry (see Austrade works with other areas of the Australian tables 2 and 3 on pages 19–31). Government to facilitate improvements in policy settings that impact on the tourism sector, Tourism sector performance including immigration, transport, employment and the business environment. This allows International visitors to Australia spent a tourism businesses to prosper and grow. record $32.5 billion in the year ending March Austrade also works with state and territory 2015—10 per cent or $2.9 billion more than the tourism organisations, in collaboration with previous year (Figure 15). There was also strong the Australian tourism industry, to develop and growth of 8 per cent in the number of visitors implement the Tourism 2020 strategy. aged 15 years and over, and 7 per cent for nights spent in Australia. Accurate and timely data and research are important tools for measuring the performance Across Australia’s top five markets, China of the tourism sector and its contribution to the continues to lead growth. China’s trip spend Australian economy, monitoring tourism trends, increased by 25 per cent to $6.4 billion. China and informing decision-making by governments now accounts for 20 per cent of all trip spend and industry. Through national surveys and by international visitors to Australia—up from analytical research, Tourism Research Australia 7 per cent 10 years ago. Visitor numbers (TRA) delivers independent high-quality data and nights from China have also increased and analysis on international and domestic significantly, both up 19 per cent to 829,000 and tourism. TRA provides all levels of government 36 million nights respectively.

Figure 15: International visitors in Australia, year ending March 2015

VISITORS ▲8% NIGHTS ▲7% EXPENDITUREEXPENDITURE(a)(a) ▲▲10%10% 6.5 MILLION 231 MILLION $32.5$32.5 BILLIONBILLION

(a) All expenditure by international visitors when travelling to Australia. Includes international pre-paid airfares and packages. Source: TRA, International visitors in Australia, at http://tra.gov.au/documents/ivs/IVS_one_pager_March2015_FINAL.PDF.

68 Australian Trade Commission Annual Report 2014–15 02

Visitor numbers and spend were also up for most leisure travel, which is made up of those visiting other key markets. These markets include the friends and relatives and holiday visitors. United States, where visitors were up 10 per cent Those visiting friends and relatives increased to 535,000 and spend up 14 per cent to by 10 per cent to 1.8 million and their total trip $2.9 billion; New Zealand, where visitors were up spend increased by 13 per cent to $5.4 billion. 5 per cent to 1.1 million and spend up 7 per cent Holiday visitors were up by 7 per cent to to $2.5 billion; and Singapore, where visitors 2.9 million and their total trip spend also grew were up 6 per cent to 325,000 and spend up by 7 per cent to reach $12.7 billion. 8 per cent to $1.2 billion. Results for the United With growth in leisure travel and across both Kingdom, however, remain flat with visitors emerging and traditional markets, most states (631,000) and spend ($3.5 billion) unchanged. had record visitor arrivals (Figure 16). Across all markets, the largest growth occurred Domestic travel accounts for around three- for India. Boosted by the ICC Cricket World quarters of total visitor expenditure. Latest data Cup held in Australia and New Zealand during from the National Visitor Survey for the year February and March 2015, trip spend was up ending March 2015 show that Australians spent 35 per cent to $959 million, visitor numbers a record $74.1 billion on travel within Australia— were up 25 per cent to 202,000, and nights an increase of 5 per cent on the previous year. were up 30 per cent to 12 million. Growth was strong for domestic overnight The increase in visitor numbers during the year travel. Overnight trips increased 6 per cent to ending March 2015 continued to be led by 82.3 million and overnight expenditure grew

Figure 16: Visitor numbers and spend by state and territory, year ending March 2015

288,870 VISITORS ▶ 9%

$472 MILLION SPEND 18▶ %

2,196,434 VISITORS 7%▶

$4,400 MILLION SPEND ▶ 11%

833,073 VISITORS ▶ 7%

$2,384 MILLION SPEND ▶ 7%

3,272,578 VISITORS 7%▶

$7,461 MILLION SPEND 9%▶ ▶ 177,065 VISITORS 2% ▶

$360 MILLION SPEND ▶ 1% 380,830 VISITORS 1% ▶ $690 MILLION SPEND 7%

197,561 VISITORS ▶ 28%

2,230,933 VISITORS ▶ 12% $304 MILLION SPEND ▶ 42%

$5,450 MILLION SPEND ▶ 14%

Note: All percentage changes are as compared to year ending March 2014. Source: TRA, International visitors in Australia, at http://tra.gov.au/documents/ivs/IVS_one_pager_March2015_FINAL.PDF.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 69 6 per cent to $55.7 billion (Figure 17). Strong growth also occurred in mixed-use Furthermore, domestic day-trip expenditure developments—valued at $33.6 billion (up increased by 1 per cent to $18.1 billion. The $11.9 billion). These types of developments continuing lower value of the Australian include accommodation components as well dollar is likely to encourage greater domestic as other residential, commercial, recreational holiday numbers as overseas travel becomes or gaming components. The accommodation more expensive. components of these types of developments have the potential to generate a total of around Investment in Australia’s tourism industry 18,315 new rooms, separate to those from stand- alone accommodation developments. Ongoing investment in critical tourism infrastructure—including for the accommodation, The Tourism 2020 Implementation Plan aviation, and arts, recreation and business (2015–2020) services sectors—is crucial to industry growth and will ensure that the industry remains In 2014–15, Austrade worked with Tourism globally competitive. Solid growth in both the Australia, the Department of Foreign Affairs volume and value of projects in the pipeline and Trade, state and territory tourism in 2014, compared to 2013, was boosted by organisations and the tourism industry to investors’ continued confidence in the Australian develop and implement the next phase of the tourism industry and the opportunities it Tourism 2020 strategy. presents, and also by the strength of the current Tourism ministers from the Australian and state development cycle. and territory governments have identified four TRA estimated that the tourism investment policy priorities under Tourism 2020. These are to: pipeline (from planning to completion) ›› encourage high-quality tourism experiences, included 168 projects valued at $53.7 billion including Indigenous tourism in 2014 (Figure 18). This was up by 29 projects ›› limit the tax, red tape and other regulatory and $4.3 billion on the previous year, with burden industry faces investment in stand-alone accommodation undertake coordinated and effective projects potentially adding 15,915 new rooms to ›› marketing campaigns to drive demand accommodation supply. ›› work with industry to support the development of tourism infrastructure that can drive demand.

Figure 17: Domestic travel in Australia, year ending March 2015

TRIP SPEND ▲6% OVERNIGHT TRIPS ▲6% NIGHTS ▲9% $55.7 BILLION 82.3 MILLION 312 MILLION

Source: TRA, Travel by Australians, at http://tra.gov.au/documents/nvs/NVS_Summary_March_2015.pdf.

70 Australian Trade Commission Annual Report 2014–15 02

Figure 18: Australian tourism investment pipeline, 2014

AUSTRALIAN TOURISM INVESTMENT PIPELINE 2014

$53.7b 168 PROJECTS(a) TOTAL VALUE OF PIPELINE

} ▶ ▶ $4.3b 29 PROJECTS 5 OF THE 168 PROJECTS IN THE PIPELINE WERE ACCOUNTED FOR IN BOTH THE 71 NEW PROJECTS, AS WELL AS THE NEW 21 PROJECTS THAT WERE COMPLETED IN 2014.

71 CONTINUING C O M Value: $10.9b STILL IN PROGRESS REMAIN PL ▶ $6.9b ▶ 23 PROJECTS PLANNING/ FROM COMMITTED/ E

UNDER PLANNING TO UNDER T

E CONSIDE RATION COMMITTED CONSTRUCTION 21 D

ACCOMMODATION

▶

32 14 35

5 15

PROJECTS

Value: $12.2b Value: $1.2b Value: $28.1b

$3.9b $1.3b Value: $1.5b ▶ ▶▶

▶ $3.9b $1.5b $5.2b

▶ $421 MILLION ▶ 5 PROJECTS ▶ 9 PROJECTS 7 PROJECTS

▶ 4 PROJECTS

AVIATION INFRASTRUCTURE AND FLEET ▶ $31.3b $1.8b 13 PROJECTS AND 182 FLEET ORDERS(b) INFRASTRUCTURE PROJECTS $4.1b $10.9b ▶ ▶ $ + FLEET INVESTMENT $20.4b $5.9b +

ARTS, RECREATION AND BUSINESS SERVICES AVIATION PROJECTS

$13.9b ▶ $5.0b 57 PROJECTS Value: 3 $640 MILLION

ACCOMMODATION 88 PROJECTS ARTS,

$8.5b ▶ $1.1b RECREATION

▶ 3,890 ROOMS 15,915 ROOMS AND BUSINESS SERVICES MIXED-USE ACCOMMODATION PROJECTS + 7 Value: 69 PROJECTS $936 MILLION

$33.6b ▶ $11.9b

18,315 ROOMS ▶ 9,710 ROOMS

(a) The size and value of the total tourism investment pipeline includes 21 accommodation projects worth $1.5 billion that were completed in 2014. The total pipeline does not account for the remaining 10 aviation and arts, recreation and business services projects worth $1.6 billion that were also completed in 2014. This is due to benchmarking the progress of the Tourism 2020 accommodation rooms target. (b) The 182 aircraft fleet currently on order in the pipeline are spread across 10 separate orders by Australian airlines. Note: All changes are as compared to 2013. Source: TRA, Tourism Investment Monitor 2015, May, at www.tra.gov.au.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 71 A programme of activities under the ›› employment—address the predicted Tourism 2020 Implementation Plan (2015–2020) 56,000 unfilled jobs gap was endorsed at the Tourism Ministers’ Meeting ›› investment—provide up to 20,000 new rooms. in October 2014. Australian, state and territory Austrade is responsible for influencing relevant governments and tourism industry stakeholders agencies to improve visa arrangements, increase agreed to work together to deliver several key aviation capacity, and attract investment into reforms consistent with the four policy priorities. tourism infrastructure. In April 2015, at the Australian Standing Committee on Tourism meeting, several reforms were recommended. They are to: Improving tourism access ›› increase cross-portfolio collaboration within During 2014–15, Austrade cooperated with all levels of Australian government to plan and other government agencies and tourism drive reform of the visitor economy industry stakeholders to enhance tourism ›› improve visa arrangements to make Australia’s access, including through streamlining visa visitor visas easier, quicker and competitive and passenger facilitation arrangements, and improving air services and aviation connectivity. ›› improve aviation capacity and customer experience to improve access and Streamlining visa and passenger flexibility to meet demand in the tourism facilitation arrangements transport environment ›› develop a skilled tourism workforce to better Austrade supported the Department of Immigration and Border Protection’s work to service the visitor economy streamline Australia’s visitor visa processes, › integrate national and state tourism plans into › influencing policy outcomes to ensure there regional development and local government are benefits for the visitor economy. Recent planning to generate effective infrastructure significant improvements include a trial of to service regional communities and provide online visitor visa lodgement for Chinese and services to the visitors, and to encourage Indian nationals. Austrade was also involved private investment in tourism infrastructure in working on the White Paper on Developing ›› identify partnerships, efficiencies and Northern Australia, which announced a number opportunities to increase marketing spend of important visa reforms, including trials to allow to drive demand for travel to Australia and visa applications in simplified Chinese, fast- improve conversion. tracked processing, and a multiple entry visitor visa valid for 10 years for Chinese tourists. In line with these reforms, the following targets have been set: In September 2014, the governments of Australia ›› overnight visitor expenditure—achieve and New Zealand announced a trans-Tasman $115 billion to $140 billion in overnight spend visa arrangement that allowed international visitors attending the 2015 Cricket World Cup by the year 2020 to be granted entry to both Australia and New › aviation seat capacity—achieve an additional › Zealand on the one visa application. This was 3.1 million inbound international seats to reach the first time the two countries had cooperated the targets under Tourism 2020 on trans-Tasman visa arrangements.

72 Australian Trade Commission Annual Report 2014–15 02

Austrade supported the Australian Customs and For the year ended February 2015, international Border Protection Service’s work to improve carriers operated 22.1 million seats into the experience for international passengers Australian ports. This was up from 21.4 million entering and exiting Australia. SmartGate seats for the previous year to February—an technology provides a secure, efficient way for increase of around 3.9 per cent. eligible passengers to clear passport control In November 2014, Austrade participated in and is permanently available to eligible travellers the International Civil Aviation Organization Air from New Zealand, the United States, the Services Negotiation Event (ICAN 2014) in Bali, United Kingdom, Switzerland and Singapore Indonesia. The Australian delegation held more (which received permanent access in July than 20 meetings with foreign aeronautical 2014). Earlier in 2015, Customs and Border authorities. Importantly, Australia’s delegation Protection commenced SmartGate trials had positive interactions with representatives for eligible visitors from China, Hong Kong, from Qatar, China and Malaysia—three of the Macau, Taiwan and Japan. This is in addition tourism industry’s important visitor markets or to the existing trials for Ireland and Canada. aviation hubs. Austrade will work with Customs and Border Protection to ensure SmartGate eligibility is Attracting investment into expanded to further markets and introduced for tourism infrastructure departing passengers. Austrade provides coordinated government assistance to promote, attract and facilitate Improving air services and aviation connectivity productive foreign direct investment into tourism infrastructure in Australia, partnering Austrade worked with the Department of with Tourism Australia and state and territory Infrastructure and Regional Development to governments. This activity includes identifying strategically influence outcomes that support and engaging with potential foreign investors via a stronger, internationally competitive and meetings and other events. sustainable transport system. This in turn supports competition, engenders consumer In line with the Government’s red tape reduction confidence, and provides traveller choice. agenda, Austrade works closely with Australian, state and territory government agencies to Austrade is a delegation member for foster a supportive and streamlined regulatory international air services arrangement environment for tourism investment. This work negotiations and ensures that tourism and is supported by the Investment Attraction trade interests are appropriately considered. Partnership Group (comprising representatives In 2014–15, Austrade participated in talks with from Commonwealth and all state and territory China and the Philippines. Significant capacity government agencies), which meets regularly increases were achieved with both countries, to discuss opportunities for regulatory reform which will assist in reaching the aviation targets that supports tourism investment. The pursuit under Tourism 2020. Austrade also participated of regulatory reform is important to ensure in talks with Hong Kong and provided input for that Australia remains competitive, not just in negotiations with Chile and Myanmar. terms of attracting visitation, but in attracting investment in accommodation and attractions to meet the needs and expectations of visitors.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 73 Wanda to invest $1.2 billion in prime Sydney tourism precinct

will include a new 160-room, five-star Wanda Vista hotel and renovation of one of Australia’s paramount tourism precincts.

The Wanda Group identified Australia as a priority market after participating in an investment roundtable during Australia Week in China, coordinated by Austrade in April 2014. Austrade continued to work closely with Wanda during the following year, introducing a range of different investment opportunities to the company.

The development follows Wanda’s purchase of Gold Fields House at 1 Alfred Street and the adjacent Fairfax House, both in Sydney, and its Jewel Project—a US$900 million investment in a three-tower, five-star hotel and apartment complex in Surfers Paradise, Queensland, announced in October 2014. The Jewel development includes a 170-room five-star The Wanda Group is China’s largest five-star Wanda hotel, which will cover 146,000 square hotel owner and manager. During 2014–15, it metres on absolute beachfront. It is due for announced an almost $1.2 billion investment completion in 2018. in a major mixed-use development at Circular Quay in Sydney. The development, which is a Pictured: Artist’s impression of the Jewel project in Surfer’s Paradise, Queensland. Photo: Wanda Group. major win for tourism infrastructure in Australia,

The Australian Tourism Investment Attraction Austrade also supports the tourism industry Partnership is a five-year agreement through the Tourism Major Project Facilitation between Austrade and Tourism Australia. The service, which assists proponents of major partnership sets out a whole-of-government tourism projects to obtain government approvals. approach for attracting foreign investment State and territory governments also provide to the tourism industry, as well as promoting tourism investment facilitation services. In tourism investment opportunities to potential 2014, Austrade provided assistance to five investors through Austrade’s onshore and major tourism projects, progressing more than offshore network. $2 billion of development that will support 12,000 jobs.

74 Australian Trade Commission Annual Report 2014–15 02

Engaging with tourism industry decision- implementation of the Tourism 2020 strategy, makers and stakeholders and consider tourism policy matters of mutual interest. Industry stakeholders from the Tourism Austrade works cooperatively with other and Transport Forum, the National Tourism Australian Government agencies, state Alliance, the Australian Regional Tourism and territory governments and the tourism Network and the Australian Tourism Export industry to increase participation in and Council were invited to participate on relevant implementation of the Tourism 2020 strategy. agenda items. This involves influencing decisions by other Australian Government agencies that support ASCOT supported the continuation of the the achievement of outcomes under the Survey of Tourist Accommodation in 2014–15; Tourism 2020 strategy. advanced the Tourism 2020 key reforms for tourism ministers’ endorsement; and established This work includes providing policy advice to the the funding framework for the Tourism Demand- Government to remove barriers and encourage Driver Infrastructure programme. investment in tourism infrastructure and the supply of services to tourists. These services include transport (such as aviation and cruise Business events roundtable and shipping), visas, labour and skills, building industry presentations and planning regulations, and other barriers In March 2015, Austrade participated in the to investment and ongoing productivity of Business Events Roundtable, which brought the sector. the business events industry together to discuss how Australian Government agencies, The tourism sector is represented by four including Tourism Australia and Austrade, can peak industry groups—the National Tourism work together to support the industry when Alliance, the Tourism and Transport Forum, it is bidding for, marketing or leveraging an the Australian Tourism Export Council and international event. the Australian Regional Tourism Network. During the year, Austrade consulted more than Throughout the year, Austrade gave several 160 industry leaders to identify potential reform industry presentations about the Tourism 2020 areas that were prioritised by governments key reforms, achievements in 2014–15 and and representatives of the four industry upcoming milestones under Tourism 2020. groups. These areas were then put forward Presentations were made at a number of for consideration by tourism ministers, to form events, including the Tourism and Transport the basis of reforms under the Tourism 2020 Forum, Tourism Australia industry briefings Implementation Plan (2015–2020). and the National Tourism Alliance’s Australian Tourism Roundtable.

Australian Standing Committee on Tourism In November 2014, Austrade gave a presentation Austrade and state and territory government on subnational statistics at the OECD Global tourism officials met twice in 2014–15 at the Forum on Tourism Statistics in Japan. This Australian Standing Committee on Tourism activity also included engagement with investors (ASCOT). The aim of ASCOT is to support and research agencies through Austrade’s the Tourism Ministers’ Meetings, drive the Osaka and Tokyo offices.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 75 Daniel Boyer Assistant General Manager, Tourism Policy and Operations, Canberra

Daniel Boyer and his Status scheme, which supports and regulates team work closely with Chinese tour group operators in Australia; Australian, state and as well as the Tourism Demand-Driver territory government Infrastructure programme, which provides agencies to develop support to state and territory governments in policy that strengthens developing tourism infrastructure. the Australian tourism Daniel joined Austrade in 2014 from the industry. The team is Department of Immigration and Border particularly focused on supply-side factors like Protection, where he held senior roles, visas, aviation and planning regimes and has including managing Australia’s visa excellent relationships across government, processing arrangements in North Asia and which are integral to its success. the Mekong region (based in Beijing), and As well as this policy leadership role, Daniel’s running Australia’s refugee and humanitarian team also manages a range of tourism-related resettlement programme. programmes, like the Approved Destination

Productivity review of Australian to improve the competitiveness of tourism international tourism industry businesses. At 30 June 2015, TEPs had delivered 120 targeted strategies, working with In November 2014, Austrade made a submission 1,200 stakeholders to support regional workforce to the Productivity Commission’s review of planning. TEPs have been recognised by the Australia’s international tourism industry. The OECD as best practice learning models to submission detailed the agency’s role in support quality jobs in tourism. developing policy, managing programmes and providing research to strengthen Australia’s Austrade has also developed A guide to tourism industry and to grow Australia’s tourism developing tourism employment plans and a TEP market share. advisory service to support additional regions with labour and skills shortages. Other resources Increasing tourism employment developed include a workforce planning guide and TEP tools website, with information to A priority under the Tourism 2020 strategy is support tourism and hospitality businesses with to increase the supply of labour and skills, and recruitment, retention and skills needs. Indigenous participation, in the tourism industry. Tourism employment plans (TEPs) are being Access to international labour is important for rolled out across eight ‘hot spot’ regions that are Australia’s tourism industry, particularly when experiencing acute labour and skills pressures. local labour cannot be sourced. Working holiday TEPs address specific regional employment visas allow businesses to manage seasonal peak issues and deliver practical workforce solutions labour demand with short-term, low-skilled labour from overseas.

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The Australian Government is currently its state and territory counterparts, this grant negotiating new working holidaymaker programme is delivering $43 million over agreements with around 20 countries that will four years. This programme reiterates the support the industry’s employment needs. The Government’s commitment to refocus tourism Government has also negotiated a new work and grants funding to a programme that will ensure holidaymaker arrangement with China, and since the benefits of government investment are 1 July 2014, the occupation of ‘chef’ has been multiplied across the tourism sector. included on the Skilled Occupations List. Funds for the TDDI programme are provided to To support Tourism 2020, Austrade state and territory governments, which are best commissioned Deloitte Access Economics to placed to decide their tourism infrastructure undertake another national tourism labour force priorities. Projects should stimulate demand survey in mid-2015. This survey will update along the tourism supply chain, with the previous work from 2010 to determine how the benefits of each project accruing to more than industry is tracking against shortages, and will one business. also identify key issues impacting on the sector’s The T-QUAL Grants Programme provided labour force. competitive merit-based project grants. The programme terminated in 2014–15. All existing Grants programmes projects were completed by 30 June 2015. In 2014–15, Austrade administered a number of The Tourism Industry Regional Development tourism-related grants programmes on behalf Fund grants programme provided competitive of the Department of Foreign Affairs and Trade grants for accommodation and attractions (DFAT). They were: projects in regional areas. Existing projects were ›› the Tourism Demand-Driver Infrastructure completed by 30 June 2015 and no further TIRF (TDDI) programme grant rounds will be offered. › the T-QUAL Grants Programme › Unallocated funds under the ceased TIRF ›› the Tourism Industry Regional Development and T-QUAL grants programmes have been Fund (TIRF) grants programme consolidated into the TDDI programme in ›› the Tasmanian Regional Tourism Package. line with the Government’s policy priorities for tourism. DFAT was the appropriated entity for the TIRF, T-QUAL and TDDI programmes in 2014–15. The Tasmanian Regional Tourism Package is Austrade provided staff within its tourism division a part of the Government’s Tasmanian Jobs to administer grants under these programmes, and Growth Package, with funding provided with DFAT then making the grants payments.14 for 2014–15 and 2015–16. At the request of the A brief description of the programmes is Tasmanian Government, approval was given for given below. the bulk of the funds allocated to the Regional Tourism Infrastructure and Innovation Fund to be The TDDI programme delivers demand-driver moved to the 2015–16 funding year. infrastructure for the tourism industry. Through

14 From 2015–16, Austrade will be the appropriated entity for the remaining TDDI programme.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 77 Tourism Research Australia In partnership with Tourism Australia, TRA has undertaken Asia Marketing Fund research Tourism Research Australia (TRA) provides to assist efforts to grow tourism demand tourism data and analysis across Australia’s from Asia—another priority area under the international and domestic tourism markets, Tourism 2020 strategy. Through its Destination as well as forecasts of tourism activity. TRA Visitor Survey, TRA, in collaboration with state supports the Tourism 2020 strategy by and territory government tourism agencies, providing independent research that informs has also prepared research aligned to areas of the development of the strategy’s principal strategic priority under Tourism 2020. objectives, and tracks the progress of tourism’s critical performance indicator, the 2020 Tourism TRA’s data and reports provide knowledge and Industry Potential. information to assist in shaping policy settings that impact tourism labour and skills, transport policy and investment. This also informs the tourism industry and assists those in the industry who make critical business decisions.

Tourism’s role in Australia’s economic prosperity

Australia’s tourism sector provides the people- leisure travellers. In January 2015, at Australia to-people links necessary to promote a deeper Business Week in India, Austrade coordinated knowledge and appreciation of Australia as a whole-of-government presence, working a world-class holiday, study, business and closely with the Department of Foreign Affairs investment destination. This in turn leads to and Trade, Tourism Australia, other Australian increased levels of trade and investment, and Government agencies, and state and territory higher economic growth. governments. For more information on Australia Business Week in India, see page 84. Austrade, through its role in tourism policy, is able to connect tourism across its wider Business events spectrum of work supporting Australian The Hon Andrew Robb AO MP, Minister for businesses internationally, attracting Trade and Investment, launched the productive foreign investment into Australia, Attracting business events to Australia and promoting Australia’s education sector. guide in November 2014. It sets out how Specific examples are described below. Austrade and Tourism Australia can support Ministerial business missions event organisers through the event bidding and delivery process, and strengthen Ministerial business missions are an excellent Australia’s share of the international business opportunity to promote Australian tourism, as events market. well as an opportunity for particular tourism groups to target key customer segments like business and conference travel, and high-end

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TRA delivers tourism information for Australian to Australia and the money they spend. The tourism regions and local government areas. outputs are used extensively by all levels of It also undertakes strategic regional research government and by industry and investors projects, such as the Destination Visitor for business planning, policy formulation, Survey, in conjunction with state and territory marketing, and identifying and supporting government tourism agencies. TRA released investment opportunities. 24 research reports in 2014–15, as outlined in The TRA’s National Visitor Survey collects Table 4 (see page 81). information on the travel behaviour of Australian residents, including overnight trips, day trips National surveys and overseas travel. The introduction of mobile Through its International Visitor Survey, TRA phone interviewing has removed the bias collects information on the travel behaviour caused by non-coverage of the increasing of international visitors. This is the only number of Australian residents who do not comprehensive collection of data on the have a fixed-line phone. It also means that the travel characteristics of international travellers National Visitor Survey age profile will more

The guide can be used as a resource for tourism Corporate groups are developing hotels or industry stakeholders to understand how and acquiring established assets for repositioning as when to seek the support of Austrade and a way of growing a brand globally. Tourism Australia in three key areas—bidding for, Australian hotel asset trades reached a new marketing and leveraging events. high in 2014, with more than $2.5 billion of Business events demonstrate Australia’s accommodation real estate changing hands. 1 capabilities; they make a significant contribution This is the highest level ever recorded, and to the tourism industry; and they develop around 30 per cent higher than the 2007 peak. trade and investment relationships. They This highlights the current weight of capital play an important role in connecting industry globally, and the positive sentiment towards the leaders and accelerating innovation through Australian hotel and tourism sector. the exchange of information and ideas. They Austrade’s senior investment specialist for are also a significant platform to attract foreign tourism infrastructure promotes Australia as an investment and talent flows to Australia. investment destination of first choice, working with state and territory governments to ensure Tourism investment projects get off the ground. This specialist plays Australia’s hotel industry has a long history an important role in identifying regulatory and of foreign direct investment. High real estate other barriers to tourism investment in Australia. transparency is a major factor behind the strong demand from global investors, who seek quality hotel assets or development opportunities. 1 Transaction data has been sourced from Jones Lang LaSalle, and pipeline data sourced from Austrade’s in-house research.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 79 closely reflect that of the population aged economic contribution to states and 15 years or older, addressing the under-coverage territories. Contribution is measured both of young people (who are more likely to be directly and indirectly by gross value added, mobile-only) and the over-representation of output, gross state product and employment older residents (more likely to live in fixed-line in the tourism sector. households). ›› Tourism Regional Profiles 2013–14—provide Results of the International Visitor Survey and comprehensive tourism demand and supply National Visitor Survey are released quarterly, data for 77 Australian tourism regions, and and data from these surveys, in conjunction all states and territories. These reports are released annually. with the regional expenditure estimates, are key components of the ABS Tourism Satellite ›› Local Government Area Profiles—provide Account within the Australian National Accounts. comprehensive tourism demand data from The survey data also informs TRA’s tourism TRA, along with business and demographic forecasts and numerous other publications. data from the ABS, for more than 200 local government areas.

Strategic and economic research Most TRA research, including a broad range of TRA measures the structure and performance of statistics collected from the International Visitor the Australian tourism industry through strategic Survey and National Visitor Survey, is freely and economic research. It also delivers tourism available on the TRA website, www.tra.gov.au. business and employment data, and economic TRA generates revenue from customised data impact and regional expenditure data. This requests and subscriptions to TRA Online, a research supports policymaking, marketing and database containing time-series data from industry development. Key publications released the International Visitor Survey and National in 2014–15 include: Visitor Survey. ›› State of the Industry 2014—analyses the performance of the Australian tourism industry Engaging with the China tourism market against the 2020 Tourism Industry Potential. China continues to be Australia’s most important It examines the challenges ahead and how inbound tourism market. Chinese tourists spend the industry needs to respond. This report is more per capita than any other international released annually. visitors, contributing around $5.4 billion to ›› Tourism Investment Monitor 2015—provides the Australian economy for the year ended an estimate of the total value of large-scale September 2014. The Australia–China tourism projects in the tourism investment relationship was enhanced in November 2014, pipeline. This report is released annually. when Australia and China negotiated a historic ›› Tourism Forecasts: Autumn 2014—provides free trade agreement that promises to yield 10-year forecasts for inbound and domestic strong economic benefits for both nations. From tourism sectors at the national and state and the tourism policy, programmes and research territory levels. perspective, Austrade engages with the China ›› State Tourism Satellite Accounts 2013–14— tourism market in a number of ways. These are provides time-series measures of tourism’s described on page 82.

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Table 4: Reports released by Tourism Research Australia, 2014–15

Report name Date published International Visitors in Australia: December 2014 quarterly results of the 21 June 2015 International Visitor Survey Tourism Investment Monitor 2015 8 May 2015 State Tourism Satellite Accounts 2013–14 24 April 2015 Tourism Region Profiles 2013–14 21 April 2015 Dispersal of Chinese Free and Independent Leisure Visitors in Australia 18 March 2015 Travel by Australians: December 2014 quarterly results of the National Visitor 11 March 2015 Survey Tourism Profiles for Local Government Areas in Regional Australia 26 February 2015 Food and Wine Tourism in New South Wales 28 January 2015 Tourism Businesses in Australia, June 2010 to June 2013 23 January 2015 Tourism Ready Reckoner: September Quarter 2014 23 December 2014 Tourism Update: Updated Results to ‘State of the Industry 2014’, September 23 December 2014 Quarter 2014 Travel by Australians: September 2014 quarterly results of the National Visitor 10 December 2014 Survey International Visitors in Australia: September 2014 quarterly results of the 3 December 2014 International Visitor Survey State of the Industry 2014 29 October 2014 Tourism Ready Reckoner: June Quarter 2014 28 October 2014 Travel by Australians: June 2014 quarterly results of the National Visitor 10 September 2014 Survey Chinese Resident Perception of Queensland 8 September 2014 International Visitors in Australia: June 2014 quarterly results of the 3 September 2014 International Visitor Survey Northern Territory Visitor Touch Points 15 August 2014 Visitor Perceptions of the ACT 8 August 2014 Events: Drivers of Regional Tourism 8 August 2014 Tourism Update: Updated Results to ‘State of the Industry 2013’, March 22 July 2014 Quarter 2014 State Tourism Forecasts 2014 10 July 2014 Travel by Australians: March 2014 quarterly results of the National Visitor 9 July 2014 Survey

Part 02 / Report on performance. Outcome 1 – Programme 1.1 81 China Approved Destination Status scheme Air services arrangements

The China Approved Destination Status (ADS) In January 2015, the Australian Government scheme is a bilateral tourism arrangement negotiated a landmark air services agreement between the Australian and Chinese with China. Both countries agreed on governments allowing Chinese leisure tourists to reconfigured arrangements that will triple travel to Australia in groups. Australia can host gateway capacity between Australia and leisure group tours from China. Austrade’s role China by the end of 2016. Under the new is to ensure that inbound operators deliver the arrangements, airlines from both nations may product they promise the traveller. operate 26,500 seats per week between The Chinese Government views Australia’s China’s gateway airports—Guangzhou, ADS scheme as best practice. Maintaining this Shanghai and Beijing—and Australia’s gateway relationship is important both for the economic airports—Sydney, Melbourne, Brisbane and benefit Chinese tourism brings to Australia, Perth. This is an increase of 4,000 more and the broader relationship between the two seats than was previously permitted from all countries. Since 1999, Australia has hosted of China into Australia’s gateway airports. A more than 1 million ADS tourists, and currently further 7,000 weekly seats will be phased in 35 per cent of leisure tourists from China are during the next 18 months, bringing the total ADS tourists. For the year ended March 2015, weekly gateway entitlement for each country to Tourism Research Australia data show Chinese 33,500 seats by the end of 2016. arrivals increased by around 19 per cent to a Both countries also agreed on a new package record 891,500 visitors. of 26,500 seats per week for flights between A revised ADS Code of Business Standards China’s regional cities and Australia’s gateway and Ethics, which sets out the responsibilities airports. This arrangement will be supplemented of inbound tour operators and tour guides, was by an additional 7,000 seats per week during the released in December 2014, following a change next 18 months. to legislation in China. The new code sets out the responsibilities of inbound tour operators and Agreement with the China Tourism Academy tour guides operating within the ADS scheme. In November 2014, Austrade, through Tourism Research Australia, signed a memorandum of Australia–China Tourism Dialogue understanding with the China Tourism Academy. In September 2014, Austrade hosted a delegation This agreement will strengthen Australia’s from the China National Tourism Administration relationship with China on tourism research. in Sydney for the annual Australia–China The initial agenda is to develop common metrics Tourism Dialogue. The dialogue is a meeting around visitation and satisfaction. between senior officials to identify and progress work on bilateral tourism issues under the 2011 Memorandum of Understanding on Tourism Cooperation between Australia and China.

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Austrade’s international network Austrade’s international network works with its strong investment growth as they seek new onshore network to contribute to Australia’s markets and technologies, and access to natural economic prosperity through its trade promotion resources to secure India’s supply chains for and investment attraction activities, promotion rapid industrialisation. of Australia as an international study destination, In September 2014, the Prime Minister, the and connecting tourism attraction and policy Hon Tony Abbott MP, visited India along with work across its wider spectrum of work. a delegation of 30 senior Australian business Austrade complements the economic diplomacy executives from the resources, energy and agenda of the Department of Foreign Affairs and education sectors. Austrade worked with the Trade, and its international network extends—and Department of Foreign Affairs and Trade on a sometimes leads—the Australian Government’s programme for the accompanying delegates presence in a number of international markets. that included meetings with the heads of some At 30 June 2015, Austrade’s network had 79 of India’s largest companies, Indian government overseas offices in 47 markets, and 32 of those ministers and officials, as well as firm-level offices were in cities where the Department engagement at a major Indian Chambers of of Foreign Affairs and Trade does not have Commerce event. In November 2014, India’s an embassy, consulate or high commission. Prime Minister, the Hon Narendra Modi, made Examples of Austrade’s achievements of its a reciprocal visit to Australia. Further official deliverables and key performance indicators, in visits by ministers and senior government a number of international markets, are provided representatives from both countries have below and on the following pages. followed, reinforcing the growing importance of the Australia–India relationship.

India Energy has been the traditional focus of the With a projected growth rate of 7.5 per cent Australia–India economic relationship. Australia in 2015–16, India is set to become the world’s supplies coal and other resources to India, and fastest-growing major economy. By 2019, India’s strong growth is predicted for gas. Austrade economy will double in size, compared with is assisting Australian mining equipment, 2009.15 Australia and India have many common technology and services (METS) companies areas of interest, including trade and cultural ties to enter the Indian market, and Australia’s within an Indo-Pacific context. The completion METS capabilities are highly regarded—around of a Comprehensive Economic Cooperation 30 Australian METS companies are currently Agreement between the two countries will operating in India. These firms have won result in expanded opportunities for trade, contracts in areas such as mine planning reduced barriers and increased regulatory software, mine safety systems and equipment, transparency. Indian companies are in the coal washery power supply, mineral weighing process of internationalising, and this is driving systems and on-belt mineral scanning systems.

15 Christine Lagarde, Managing Director, International Monetary Fund, 16 March 2015, at www.imf.org/external/np/speeches/2015/031615.htm.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 83 Australia Business Week in India

›› the India–Australia Business Summit, co-hosted by the Confederation of Indian Industries and Austrade, and attended by more than 800 delegates ›› India Water Week, where Australia was ‘partner country’ ›› two gala dinners, held in partnership with Tourism Australia, showcasing Australian food, wine and tourism to more than 1,200 guests in Delhi and Mumbai, with a menu curated by In January 2015, Austrade organised the chef Adam D’Sylva largest-ever Australian business event to take place in India, Australia Business Week in ›› several investor roundtables, industry India. The Hon Andrew Robb AO MP, Minister and government meetings, site visits and for Trade and Investment, led a business networking events. delegation of 450 representatives to India. The Australia Business Week in India focused mission focused on 14 industry sectors across on building on the momentum created by 125 events, and covered eight cities during a high-level reciprocal visits in 2014 by the five-day programme. Highlights included: prime ministers of both countries. Mr Robb’s ›› Vibrant Gujarat Summit in Ahmedabad with a participation in Australia Business Week in delegation supported by the Australia–India India, along with other senior Australian and Business Council, and where Australia held state government representatives, emphasised ‘partner country’ status Australia’s commitment to expanding economic ties with India. Business delegates gained

From an investment perspective, Indian productivity and build an export-focused companies such as Larsen & Toubro, Aarvee manufacturing sector. Accordingly, Austrade Engineering and AMR have established offices has established the Australian Innovation in Australia to provide engineering solutions Showcase, a five-year initiative to position for major mining and liquified natural gas Australia as a source of world-class research, projects. Attracting investment in resources technology and innovation. In October 2014, and associated infrastructure is a key priority Austrade coordinated a month-long series of for Austrade. events for Indian industry to interact with groups of Australia’s leading research and technology Indian companies Tata & Sons, Mahindra, experts from the ICT, life sciences, and materials Motherson, Hero Corporation, Reliance and science sectors. Essar are increasingly investing in research to improve their product offerings, to drive

84 Australian Trade Commission Annual Report 2014–15 02

unprecedented access to India’s federal Australian participants in Australia Business and state government officials and CEOs. Week in India completed a follow-up survey Meetings were held with Prime Minister from Austrade. The results found that 98 per Narendra Modi, as well as 13 Indian federal cent of participants were satisfied with their ministers, four state chief ministers, and key experience at Australia Business Week in corporate representatives. India, of whom 82 per cent rated the event as extremely good or very good. Nearly three- Austrade worked with the Department quarters of participants said they intended of Foreign Affairs and Trade to make the to return to India to pursue opportunities programme a success, taking a coordinated identified during Australia Business Week in approach with Tourism Australia, the India, and 90 per cent expect commercial Department of Infrastructure and Regional outcomes to develop in India over the next Development, the Department of Agriculture 12 months. Through this survey, Austrade and the Department of the Environment. The was able to identify aspects of major offshore Hon Jamie Briggs MP, Assistant Minister for event programmes that are valued highly Infrastructure and Regional Development, by participants. These include the quality of and Senator the Hon Richard Colbeck, business networks and contacts introduced; Parliamentary Secretary for Agriculture, the relevance of the mission programme participated in the event. Austrade provided to their business; and the on-the-ground input to programmes for the Hon Mike execution of the event. Baird MP, Premier of New South Wales; the Hon Martin Hamilton-Smith MP, South Pictured: Some of the 450 delegates at the gala dinner at the Australian High Commission in Delhi, during the Australian Minister for Trade and Investment; Australia Business Week in India mission in January 2015. and Trade and Investment Queensland. Photo: Graham Crouch.

In materials science, 24 Australian business and seminars were held in New Delhi, Mumbai, leaders and researchers met with Indian Bangalore, Chennai, Hyderabad, Pune and corporations to demonstrate expertise and Ahmedabad. They highlighted the potential for explore commercial opportunities. The meetings bigger Australia–India commercial partnerships

450 98% 125 90%

of Australia Business of Australia Business Australian business Week in India business events were Week in India representatives attended participants were held during Australia participants expect Australia Business Week satisfied with their Business Week in India commercial outcomes in in India experience India in the next year

Part 02 / Report on performance. Outcome 1 – Programme 1.1 85 and investment in advanced services and Austrade has identified 14 areas of the India technology. Austrade collaborated with the market where Australian organisations could Department of Foreign Affairs and Trade, the compete for and win new business.16 Some Department of Industry, the Department of of the areas in which Austrade has assisted Education, CSIRO, and state and territory Australian organisations to grow their business in governments to make this programme a India during 2014–15 include: success. Early outcomes have included ›› advanced manufacturing innovation—Orbital active interest from Indian companies in Australia, for automotive engineering and investing in Australian research programmes, design services commercialising Australian research outputs, ›› water management—Hydronumerics, for and using Australian technologies in their global desalination modelling services supply chains. Several Australian participants › cultural heritage and tourism services—Sue subsequently signed research deals worth more › Hodges Productions, for cultural heritage than $2 million and non-disclosure agreements services such as cultural and natural heritage to take forward commercial discussions. interpretation in the state of Punjab The showcase was well received by Indian ›› sports development—Victoria University, businesses and media, as well as the for consultancy work to develop a sports participating Australian research institutions, framework for the state of Kerala universities and technology companies. They › dairy management—Profitable Dairy liked the practical approach to demonstrating › Systems and Chamberlain Veterinary Australia’s innovation credentials, identifying new Services, to undertake dairy development sources of funding to commercialise Australian feasibility studies technology, and providing access to the global value chains of India’s multinational companies. ›› road safety—Martin Small Consulting, which secured a World Bank–funded road safety A growing number of Australian education technical design project institutions are taking advantage of changing › heavy haul rail—TTG was chosen as the demographics in India, such as Deakin › preferred supplier for an Indian Railways University, which, in 1996, was the first energy optimisation project. Australian university to establish an office in India. Austrade works closely with Deakin University, and supported collaborations such as research partnerships with Bharat Forge and Max India Group, and the establishment of a nanobiotechnology research centre, which received $10 million expansion funding in 2014 from Deakin University and the Energy and

Resources Institute based in Delhi. As a result of 16 The 14 areas are: agriculture equipment, technology, services this wider engagement, Deakin’s Indian student and dairy; cultural services; education; health and assisted living; health—life sciences and tropical medicine; investment—resources population has grown significantly—including and energy; investment—innovation and research; premium food and undergraduate and PhD students. beverages; resources—mining equipment, technology and services; sport; tourism; transport—rail; transport—road safety; and water.

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China China remains an important source of foreign China is Australia’s number-one trading partner direct investment (FDI) into Australia. China’s and export market; it’s the largest source worldwide outbound FDI in 2014 reached of international students, the most valuable US$116 billion, a year-on-year increase of 23 tourism market, a major source of foreign direct 15 per cent. China now ranks in third place 24 investment, and Australia’s largest agricultural as a leading global source of FDI. goods market. Australia is China’s seventh- In 2014–15, Austrade achieved significant largest trading partner, and in 2014, the total outcomes in FDI from China, including Wanda value of two-way trade in goods and services Group’s decision to develop major new hotels on reached almost $153 billion. China accounts for the Gold Coast and at Sydney’s Circular Quay. 17 23 per cent of Australia’s total trade. This was a direct result of its participation in China is also Australia’s largest services export the tourism investment roundtable, led by the market. In 2014, services exports to China were Hon Andrew Robb AO MP, Minister for Trade valued at $8.2 billion. Travel, including education- and Investment, at Australia Week in China related travel, accounted for around 80 per cent in April 2014. For more information on Wanda of Australia’s services exports to China.18 More Group’s investments, see page 74. than 150,000 Chinese nationals studied in Austrade also supported Landbridge Group’s 19 Australia on a student visa in the same year, with $200 million investment in the oil and gas Chinese students accounting for 26 per cent of sector through the acquisition of Brisbane- Australia’s total international student population, based WestSide Corporation. Austrade has which contributed an unprecedented $4.4 billion been working with Landbridge since 2012, and 20 in export income. In the last year, there was an the company participated in a CEO investment overall increase of 8.4 per cent in the number of roundtable, hosted by Mr Robb, also during Chinese students on a student visa. Australia Week in China.

The number of outbound trips made by Chinese Australian companies continue to reap rewards tourists exceeded 100 million in 2014, and in from their participation in the Australia Week the year ended June 2014, tourist numbers in in China 2014 programme. A $5.5 million milk Australia from China grew 21 per cent to a record supply contract signed by Freedom Foods is 935,000 visitors, making China our second‑largest indicative of the commercial benefits that can 21 source of tourists after New Zealand. The total flow from in-market relationships fostered during spend by Chinese visitors reached $5.7 billion, a Australia Week promotions or other business 22 year-on-year increase of 19 per cent. missions in markets such as China.

17 Department of Foreign Affairs and Trade 2014, Composition of Trade Australia 2014. 18 Department of Foreign Affairs and Trade, Trade and Economic Fact Sheets, China. 19 Department of Education and Training, End-of-year summary of international student enrolment data—Australia—2014. 20 Department of Education and Training, Export income to Australia from international education activity in 2014, June 2015. 21 Australian Bureau of Statistics, cat. no. 3401.0, Overseas arrivals and departures, Australia, Table 4: Short-term Movement, Visitor 23 United Nations Conference on Trade and Development (UNCTAD), Arrivals—Selected Countries of Residence: Seasonally adjusted. World Investment Report 2015, Web table 2: FDI outflows, by region 22 Tourism Research Australia, International visitors in Australia, and economy, 1990–2014. Year ending December 2014. 24 Ibid.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 87 E-commerce in China—an opportunity for Australian businesses

In recent years, the volume of more than 100 per cent during dynamic growth of the campaign. This includes the purchase of the online retail sector more than 1,000 litres of fresh Australian milk. in China has attracted In June 2015, Austrade published the world’s attention E-commerce in China: A guide for Australian because it has business. The guide is highly practical and transformed the way comprehensive, covering every facet of online in which businesses business in China. It is freely available to can reach and Australian businesses on www.austrade.gov.au. understand Chinese consumers. E-commerce in China: A guide for Australian By June 2014, it was estimated that more business was launched in conjunction with than 300 million Chinese consumers a series of seminars held in Melbourne shopped online. In 2014, total sales were and Sydney and on the Gold Coast. more than half-a-trillion Australian dollars—a There was strong interest, with almost 50 per cent increase on the previous year.1 400 Australian companies attending. For Demand is particularly strong for baby the first time, representatives from major products, healthcare and packaged foods, Chinese online platforms Alibaba, JD.com, while cross-border policies being trialled Yihaodian and VIP.com were on hand to give by the Chinese Government substantially presentations and answer questions from simplify import regulations for small and Australian businesses. medium-sized enterprises selling directly Austrade has initiated a China e-commerce to consumers. outreach programme, which is being In September 2014, Austrade supported implemented through the TradeStart network, Tmall’s ‘Australia Campaign’, which featured state and territory governments and industry more than 40 Australian food and wine partners. More seminars, webinars and other brands and products, including Weet-Bix, information sessions will be delivered in Berri, Devondale, Bega Cheese and Penfolds. metropolitan and regional centres across The promotion received almost 15 million Australia in the future. impressions and 18,000 comments, with Pictured: Cover shot of E-commerce in China: 40 per cent of participating merchants A guide for Australian business, released by Austrade in June 2015. recording an increase in gross merchandise

1 National Bureau of Statistics, China.

88 Australian Trade Commission Annual Report 2014–15 02

Austrade continued to work in close Australian Government ministers throughout collaboration with food and beverage industry Australian capital cities and regional areas, to bodies, such as Meat & Livestock Australia prepare industry for the opportunities ahead. (MLA), Dairy Australia and Wine Australia. Ten seminars had been conducted at In November 2014, Austrade organised an 30 June 2015. Now that ChAFTA has been Australian food safety event in Changsha, signed and is expected to come into force working in collaboration with the Department later this year, Austrade’s efforts are raising of Agriculture, MLA, Wine Australia and the awareness of the benefits of the agreement, and Seafood Cooperative Research Centre. The the agreements with Japan and Korea, among event focused on Australia’s food safety systems existing and potential buyers and investors. and excellent credentials.

The signing of the China–Australia Free Trade Association of Southeast Asian Nations Agreement (ChAFTA) in June 2015 was a The Association of Southeast Asian Nations landmark in China–Australia economic relations. (ASEAN) is an intergovernmental political and Austrade and its industry partners have been economic organisation made up of 10 member actively raising awareness of the benefits of states—Brunei, Cambodia, Indonesia, Laos, ChAFTA in Australia since the conclusion of Malaysia, Myanmar, Philippines, Singapore, negotiations in November 2014. Thailand and Vietnam. Australia has a substantial trade relationship with ASEAN and Austrade is Austrade was asked to deliver a two-year active within the region. In 2014, Australia’s trade programme of onshore seminars, hosted by in goods and services with ASEAN accounted

Liu Bing Senior Trade Commissioner, Shanghai

Liu Bing leads Austrade’s served as a Trade Commissioner in Beijing, Shanghai office, which Guangzhou and Shanghai, and has developed has around 30 staff. It a deep understanding of doing business in the is one of the largest dynamic Chinese commercial environment. and busiest offices in Bing said she is excited about the new Austrade’s network. commercial opportunities that will be available She is also responsible to Australian businesses as a result of the for the Yangtze River Delta Region along China–Australia Free Trade Agreement the East China coast, which is regarded as (ChAFTA). ‘The implementation of ChAFTA, China’s financial and economic hub, and is coupled with an economic restructuring home to many large financial institutions and towards sustainable development in China, will e-commerce companies. provide many lead-ins for Australian businesses Educated in Australia, Bing is fluent in Mandarin beyond traditional industries’, she said. ‘My and Cantonese, and was previously involved team and I look forward to helping Australian in the Australian health sector before joining businesses to access new industries such as Austrade in 2002 in China. Since then, she has financial services and e-commence.’

Part 02 / Report on performance. Outcome 1 – Programme 1.1 89 for around 15 per cent of total trade, worth Thailand $102 billion,25 up from $43 billion in 2001. This Two-way trade between Australia and Thailand makes ASEAN Australia’s second-largest trading in goods and services approached $19 billion in partner, behind China. 2014.28 Australia has also received significantly Australia’s exports to ASEAN are mostly natural increased investment from Thailand in recent resources and agricultural products. The region years, particularly in mining, agriculture, is Australia’s primary export market for wheat, renewable energy and tourism infrastructure. milk and honey, as well as ferrous waste and Austrade facilitated six Thai investments scrap. In 2014, two-way trade in services was in Australia last year, making a significant worth $22.8 billion, of which Australia exported contribution to the increase of overall FDI stock $9.7 billion. ASEAN accounted for about 16.2 per from Thailand, up from $52 million in 2005 to 29 cent of Australian services exports.26 $4.6 billion in 2014.

Singapore Vietnam Singapore is Australia’s largest trading partner Vietnam is a significant recipient of development in ASEAN, accounting for around 30 per cent of assistance from Australia. This year, Austrade all Australian trade with the region, followed by identified and prioritised the crossover points Malaysia, Thailand and Indonesia.27 In August between Australia’s trade promotion and aid 2014, the Hon Andrew Robb AO MP, Minister programmes in Vietnam. A number of economic for Trade and Investment, led an diplomacy initiatives were set up to contribute Austrade-organised aerospace business to Vietnam’s development needs and create mission to Singapore. As a result of this mission, commercial opportunities for Australian a number of participants are in advanced businesses. Austrade is progressing initiatives negotiations with their Singapore counterparts, in aviation safety and sustainable mining, including BAE Systems, which has entered while water and food safety initiatives are into a collaborative agreement with Singapore under development. Technologies Aerospace Limited. In January 2015, Vietnam’s Minister for Natural Australia is evolving as an investment destination Resources and Energy visited Australia of choice within ASEAN, in response to risk to learn about mining capabilities in the mitigation, vertical integration and access to private and public sectors, and in research Australian advanced manufacturing expertise. and development. In February 2015, senior Singapore is the largest ASEAN investor in representatives from three Vietnamese firms Australia, particularly in hotels and infrastructure. visited the Avalon Air Show, resulting in the signing of two memorandums of understanding in the flight training area. In April 2015, Austrade led an Australian mining delegation 25 Department of Foreign Affairs and Trade, Composition of Trade Australia 2014, (http://dfat.gov.au/about-us/publications/Documents/ cot-cy-2014.pdf), Table 7: Australia’s Trade in Goods and Services, 28 Department of Foreign Affairs and Trade, Thailand fact sheet. page 43. 29 Australian Bureau of Statistics 2015, cat. no.352.0, International 26 Department of Foreign Affairs and Trade, Composition of Trade investment position, Australia: Supplementary statistics, 2014, Table Australia 2014, (http://dfat.gov.au/about-us/publications/Documents/ 2: ‘Foreign investment in Australia: Level of investment by country cot-cy-2014.pdf), Table 13: Australia’s Trade in Services, page 53. and country groups by type of investment and year ($million)’, 27 Ibid, page 43. released 8 May.

90 Australian Trade Commission Annual Report 2014–15 02 to Vietnam for meetings with regulators and development. Austrade is especially keen to prospective partners. build Australia’s reputation in the healthcare sector, given the rise of non-communicable Indonesia diseases in Malaysia, as well as its ageing population. Austrade developed an The ASEAN region remains a significant ‘Empowering the Elderly’ strategy, which source of international students for Australia, has included introducing Australian aged with around 118,000 enrolments from ASEAN care companies to Malaysian healthcare in 2014.30 Students from ASEAN countries professionals, government agencies and comprised 20 per cent of total international developers at three major conferences enrolments, and contributed $3.6 billion to the organised by Austrade during the last two years. Australian economy in 2014.31 As a result, 10 Australian aged care companies During the year, Austrade reached out to are involved in projects in Malaysia, including Indonesian provinces to identify businesses My Flex Health Group, Optimum Aged Care keen to engage with Australian vocational Systems, Lightwave International and Zencare education providers and researchers. As a Lifestyles Group. Austrade has also achieved result of Austrade’s visits to Medan in North greater visibility and commercial involvement Sumatra, an opportunity was identified with for Australian firms already established in a private hospital looking for general and Malaysia, including Jeta Care and Veritas specialist nurse training. Expressions of interest Architects Australia. were sought from providers in Australia, with the hospital selecting AFG Venture Group to Promoting economic diplomacy in ASEAN provide enhanced English language capability, In June 2015, Austrade and the Department and manage specialist nursing care training of Foreign Affairs and Trade (DFAT) undertook in partnership with an Australian east coast a joint economic diplomacy initiative and university. It is anticipated that the training, produced a report entitled Why ASEAN and which commenced in mid-2015, will lead to the why now? Insights for Australian business. establishment of a nursing school attached to The report sets out Austrade and DFAT’s the hospital. rationale on the new wave of opportunities in ASEAN. Its primary objective is to encourage Malaysia Australian businesses to start thinking of ASEAN In Malaysia, Austrade focuses on sectors in as an increasingly connected region. It reflects which Australian goods and services meet the experiences of already successful Australian the needs of Malaysia’s growing middle class. companies in ASEAN, and those of people on These are health and aged care, infrastructure, the ground in the Government’s network of premium food and beverages, and industrial diplomatic missions. The report explains why ASEAN’s scale and diversity make it imperative

30 Department of Education and Training, International Student Data for Australian companies to consider doing 2014 (https://internationaleducation.gov.au/research/International- business in Southeast Asia, alongside the Student-Data/Pages/InternationalStudentData2014.aspx#Time_ established economic giants of wider Asia, such Series), basic pivot tables 2011–2014. 31 Department of Foreign Affairs and Trade, Trade and economic fact as China. sheets for countries and regions, ASEAN-10, (http://dfat.gov.au/ trade/resources/Documents/asean.pdf).

Part 02 / Report on performance. Outcome 1 – Programme 1.1 91 United States Kelly Ralston Consul-General and The United States is a major driver of the global economy and a world leader in international Senior Trade Commissioner, Houston trade and investment, research and development Kelly Ralston joined expenditure, stock market capitalisation and Austrade with a share of large global corporations. The United background in law, States is Australia’s fourth-largest export finance and government destination32 and largest two-way investment and held various partner, with the two-way investment stock corporate, strategy and reaching more than $1.1 trillion in December change management 2013. In 2013–14, the United States was roles in the organisation before being posted Australia’s third-largest two-way trading partner overseas. In 2008, Kelly led Austrade’s in goods and services (after China and Japan), at participation in the Review of Export Policies and $58.2 billion.33 Programmes conducted by David Mortimer and John Edwards. Then, in 2010, Kelly managed the The United States is the largest source of secretariat commissioned by the then Austrade FDI for Australia and is also a primary driver CEO to conduct a whole-of-organisation of global FDI. It is a major market for the assessment of Austrade’s operations, also known Australian Government’s five investment as the 2010 Austrade Review. This work led to priorities. However, US domestic developments the structure and focus of Austrade’s work today. and market dynamics are likely to shape the From 2011, Kelly served as Austrade’s senior nature of outcomes that can be delivered. representative at the Australian embassy Austrade focuses the majority of its resources in Washington DC. In that role, Kelly was on facilitating investment into Australia, responsible for Austrade’s trade and investment and promoting Australia’s international work in the mid-Atlantic and South-Eastern education sector. regions of the United States. Here, Kelly also led the promotion of Australia’s international In May 2015, Austrade opened an office in education in North America. Houston, Texas, taking its total number of In March 2015, Kelly relocated to Houston to US offices to five. This decision reflects the establish the Australian Government’s new significant two-way trade and investment Consulate-General there, which is operated between Australia and Texas in particular, by Austrade. Looking back, Kelly said she has with Houston widely regarded as the global been fortunate to have had the opportunity energy capital. Houston is the fourth-largest to put her corporate strategy background into city in the United States, and the state of Texas practice. ‘It is clear that Austrade’s commercial leads the country for growth and exports. insight, connections and knowledge of specific Austrade’s Houston office will be primarily opportunities in international markets is what focused on attracting productive foreign our clients and stakeholders value most. Having a diverse mix of skills and experiences in our teams is the key to our success in continuing to 32 Department of Foreign Affairs and Trade 2014, Australia’s trade in goods and services 2013–14. deliver value’, Kelly said. 33 Department of Foreign Affairs and Trade, ‘United States of America country brief’.

92 Australian Trade Commission Annual Report 2014–15 02 direct investment to Australia. This includes with a major North Asian economy, enhances a particular focus on resources and energy, these opportunities. agribusiness, and advanced manufacturing, KAFTA improves market access for Australian services and technology, including medical- exporters, creates new services opportunities, related opportunities. Promoting Australia’s enhances protection for Australian investors education and research linkages and seeking in Korea, and safeguards Australia’s out major opportunities for Australian companies competitiveness in this large market. With the in associated sectors are also priorities. The agreement entering into force in December 2014, Houston office will also be responsible for 84 per cent of Australia’s goods exports by value providing passport and consular services can now enter Korea duty-free. When KAFTA across four states—Texas, Oklahoma, Arkansas is fully implemented, tariffs on 99.8 per cent of and Louisiana. Australia’s exports to Korea will be eliminated. KAFTA offers major prospects for Australian Korea companies, particularly in food and beverages, Korea is the twelfth-largest economy in the world services and investment. Austrade works with and the fourth-largest in Asia, with a population Australian companies in Korea to develop these of 50 million and a GDP of US$1.3 trillion.34 new opportunities. Korea’s economic growth is projected to From an investment perspective, the accelerate from 3.7 per cent in 2014 to 4 per implementation of KAFTA will lift the screening cent in 2015—one of the highest growth rates of threshold for non-sensitive Korean investments all advanced economies.35 Korea is Australia’s in Australia from $252 million to $1.094 billion. third-largest export market and its fourth-largest Australia is generally seen as a favourable two-way trading partner.36 destination for Korean outward investment, The Korean Government is facing long-term with Korea ranking as Australia’s 18th-largest economic and social challenges, such as foreign investor, with an FDI value in 2014 of an ageing population, food security needs, $3.15 billion.37 Austrade leverages this increased acute energy requirements and a need to threshold by focusing its investment promotion, internationalise its workforce. The Korean attraction and facilitation services primarily on Government has implemented a range of new the major infrastructure, agribusiness and food, policy initiatives to address these issues, many and digital technologies sectors. of which highlight the need for Australian firms to supply Korea with goods and services during this time of significant change. The signing of the Korea–Australia Free Trade Agreement (KAFTA), Australia’s first free trade agreement

34 Department of Foreign Affairs and Trade, ‘Republic of Korea country brief’, at http://dfat.gov.au/geo/republic-of-korea/Pages/republic-of- 37 Australian Bureau of Statistics 2015, International investment korea-south-korea-country-brief.aspx. position, Australia: Supplementary statistics, 2014, cat. no. 5352.0, 35 International Monetary Fund 2014, Regional economic outlook: Asia Table 2: ‘Foreign investment in Australia: Level of investment and Pacific, April. by country and country groups by type of investment and year 36 Department of Foreign Affairs and Trade, ‘Republic of Korea country brief’. ($ million)’, released 15 May.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 93 Australian exporters reap the benefits of the Korea–Australia Free Trade Agreement

30 per cent each year since 2009.1 Austrade assisted the export of Australian almonds into Emart, Korea’s largest hypermarket chain, by promoting Australian almonds in 50 Emart stores during a two-month period.

Tariffs on Australian cherries removed

Australian company Reid Fruits has been exporting cherries to Korea for more than five years. It specialises in growing and exporting premium-quality dark cherries to consumers The entry into force of the Korea–Australia in around 20 countries, and ensures that fresh Free Trade Agreement (KAFTA) in December Tasmanian cherries are on Asian supermarket 2014 has delivered early major gains shelves within four days of harvest. However, for Australian exporters, improving their tariffs of 24 per cent, along with strong competitiveness in the Korean market. competition from other countries with improved market access under their own free Demand for Australian almonds grows trade agreements, made it difficult for Reid Fruits to move into the Korean market. Under On entry into force, KAFTA eliminated KAFTA, tariffs on cherries were removed upon the 8 per cent import duty on Australian the agreement entering into force, levelling almonds, strengthening Australia’s position the playing field for Reid Fruits, and allowing as a nut exporter. The first major shipment of its quality cherries to be more competitive. Australian almonds to Korea was delivered Lucy Gregg, Business Development Manager, in September 2014. Austrade worked closely Reid Fruits, said, ‘KAFTA will help us increase with the Almond Board of Australia to raise our sales to Korea. It will make our cherries the profile of Australian almonds in the Korean more competitive and more appealing to retail market. With domestic production Korean consumers.’ unable to meet local demand, nut imports into

Korea have increased by between 25 and 1 Korean Customs Service.

94 Australian Trade Commission Annual Report 2014–15 02

New opportunities for financial service providers

KAFTA will also enhance Australian financial service providers’ access into the Korean market. Korea is home to some of the world’s largest pension funds and institutional investors, offering many opportunities for Australia’s experienced international infrastructure fund managers. Hastings Fund Management, a specialist fund manager of infrastructure debt and equity, was one of the first companies in the world to specialise solely in infrastructure funds management. ‘KAFTA will help us Hastings approached Austrade for assistance with its market development activities in increase our sales to Korea, and through advice, guidance and access to Austrade’s extensive contacts in Korea. It will make the Korean financial services sector, Austrade was able to help Hastings find business our cherries more partners in Korea. Hastings opened an office in Seoul in 2013, and was appointed the competitive and more foreign general partner of a major Korean pension fund in 2014. appealing to Korean Pictured on the previous page: Australian almonds on sale at a retail store in Korea, in September 2014. consumers.’ Photo: Austrade. Pictured on this page: Cherries from Reid Fruits on Lucy Gregg, Business Development Manager, display in the Hyundai department store in Seoul, Korea. Photo: Austrade. Reid Fruits.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 95 Australian grape growers and wine producers receive boost from Japan–Australia Economic Partnership Agreement

in the next seven to 10 years, Japan is now a priority market for future expansion for the Australian table grape industry.

Austrade is also working closely with the Australian Grape and Wine Authority on promoting premium and middle-priced wines through the ‘Taste of Australia’ campaign, which is designed to improve the perceptions of Australian wine through seminars, tasting In February 2015, Austrade, in collaboration events, targeted media outreach and market with the Australian Table Grape Association, visits by chief winemakers from Australia. the Victorian Government and Australian Under JAEPA, the tariff on bottled wines will Horticulture Innovation, led a high-profile be eliminated over seven years, while the bulk Japanese buyer mission to Victoria to wine tariffs were eliminated on entry into force. further promote Japan–Australia Economic According to the Australian Grape and Wine Partnership Agreement (JAEPA) tariff Authority, exports to Japan grew by 20 per reductions and stimulate Japanese demand cent to a record 11 million litres—a strong for grapes. Direct outcomes from the mission indication that exporters are taking advantage 1 amounted to around $4.3 million in sales. of the benefits of JAEPA. At 30 June 2015, Australia had exported Pictured: Australian table grapes on sale at the Hankyu Department Store, Osaka, March 2015. 165 containers to Japan, surpassing initial Photo: Stephen Baud. expectations of 100 containers, with shipments totalling $12 million. As tariffs are eliminated 1 Australian Grape and Wine Authority media release, 28 April 2015.

Japan 2014 were valued at $48.3 billion, representing approximately 18.2 per cent of Australia’s total Japan’s highly industrialised economy is goods exports.39 the third-largest in the world and Japan was Australia’s second-largest trading partner in Australia’s major exports to Japan included 2014.38 Japan is also Australia’s second-largest liquefied natural gas (LNG), coal, iron ore, beef, export market, and should remain so for the and copper ores and concentrates. On the other foreseeable future. Two-way goods and services side of the trade ledger, Japan is Australia’s trade between Australia and Japan was valued third-largest source of imports. Total bilateral at $70.3 billion, while goods exports to Japan in trade in services in 2013 was valued at about

38 Department of Foreign Affairs and Trade, ‘Japan country brief’, at 39 Department of Foreign Affairs and Trade, Japan fact sheet, at http:// http://dfat.gov.au/geo/japan/Pages/japan-country-brief.aspx. dfat.gov.au/trade/resources/Documents/japan.pdf.

96 Australian Trade Commission Annual Report 2014–15 02

$4.3 billion, mostly in the recreational travel, Latin America transport and education sectors. Latin America is one of the fastest-growing Japan is Australia’s third-largest investor, with an areas for oil and gas production globally. The investment stock of $174.6 billion as at the end of region’s oil output is forecast to increase from 2014. Direct investment accounts for $66 billion 11.5 per cent to 12.2 per cent between 2013 of Japan’s total investment in Australia, and has and 2022,41 following widespread reform in been essential in the development of many of several markets. Latin America is looking to the export industries that have driven Australia’s Australia for help to sustainably develop this growth, including in large-scale projects to booming sector. Australian companies are meet Japanese demand for resources such experts in safely operating in remote locations, as LNG, iron ore, coal and copper. Japanese responding to challenges and risks, providing investment has recently extended beyond the solutions to environmental and social issues, and traditional areas of natural resources to diverse workforce training. sectors such as financial services, infrastructure, In Latin America, Austrade works with a range information and communications technology, of Australian companies across the value property, food and agribusiness.40 chain to investigate market entry or expansion The Japan–Australia Economic Partnership opportunities, including new projects for Agreement (JAEPA) entered into force on exploration and production; bidding rounds 15 January 2015. To explain the benefits of the for concession of oil and natural gas blocks; agreement to Australian businesses, Austrade and the development of the oil and gas supply delivered 68 JAEPA-focused presentations, chain. Austrade’s offices in Argentina, Brazil, briefings and seminars, and jointly ran an Colombia, Mexico and Peru have established a additional nine events with the Department of collaborative regional approach to capture the Foreign Affairs and Trade in Japan. vast opportunities available for Australian service and equipment providers, researchers and Japanese corporations are looking to Australia education institutions across the continent. For for solutions to financial asset management, and example, in March 2015, Austrade, along with for assistance with planning and delivering major the Australia–Latin America Business Council sporting events, such as the Rugby World Cup and the University of Western Australia, hosted (2019) and the Tokyo Olympics (2020). Austrade a Latin America energy roadshow in Perth. continues to work with Australian and Japanese Australian suppliers from across the entire value companies to capture opportunities in these chain attended—many of whom were attracted areas and build on Australia’s strong service by the growing number of top-tier Australian sector offering in Japan. resources and engineering companies already in Latin America.

Mexico is now a hotspot for oil and gas following significant energy reform bringing landmark changes for its state-owned hydrocarbon

40 Department of Foreign Affairs and Trade, ‘Japan country brief’ and Japan fact sheet. 41 Business Monitor International, October 2014.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 97 Saïd Metwalli Trade Commissioner, Abu Dhabi

Saïd Metwalli manages makes him ideally placed to advise exporters Austrade’s Abu Dhabi on their international expansion strategies. office with responsibility ‘Austrade has already delivered opportunities for Qatar, and also to Australian providers in the rail sector leads the agency’s across equipment, technology, services and work in mining and education, with deals signed and more awards rail across the Middle pending’, he explained. ‘The next sector of East and North Africa focus where Austrade can play a pivotal role in region. Saïd takes pride in assisting exporters uncovering and delivering opportunities is in across diverse sectors, and thrives on the mining, which is a priority sector for countries dynamic, fast-paced nature of his role. His such as Saudi Arabia and Morocco.’ commercial foundation, built in the private sector across the United States, Europe and Saïd is fluent in French and Arabic, and has Asia–Pacific region, is combined with a strong conversational Spanish. He has worked at understanding of the business and cultural Austrade since 2011. elements of the Middle East. This in turn

resources. The reform allows for several there excellent attendance, but the feedback hydrocarbon investment contract models that after the event was positive and highlighted the will affect investment in Mexico’s oil and gas need for similar events in the future. 42 resources. Mexico is pushing for foreign Brazil’s oil industry is rapidly growing and is investment, and this has led to BHP Billiton, expected to be one of the largest suppliers of Woodside and WorleyParsons entering the conventional oil in developing regions, with its market in the last six months. Austrade has new oil sources in deepwater fields. Austrade provided all three companies with market has provided high-level assistance to Australian intelligence and high-level introductions to companies engaging with Petrobras, the relevant stakeholders. dominant firm in the market, as well as market intelligence to Karoon Energy International and In Peru, Austrade provided tailored research, WorleyParsons. facilitated meetings with government authorities, and organised visit programmes that have led to a number of companies establishing a presence or investing in the market. In May 2015, Austrade held an oil and gas seminar in Peru to promote Australia’s capabilities in oil and gas, and show that it could be an ideal partner. Not only was

42 EY 2014, ‘Mexico enacts sweeping energy reform affecting the oil and gas industry’, February.

98 Australian Trade Commission Annual Report 2014–15 02

Working across government Austrade provides global and commercial Austrade convenes or manages a number of perspectives to inform the policy advice and forums that provide avenues for consultation economic insights of Australian, state and and coordination between state and territory territory government agencies. Austrade’s unique governments on trade, investment, education, perspective is gained from its international and tourism policy issues. market presence, economic research and analysis, firm-level contacts and commercial Trade and investment knowledge, and active partnerships with other Trade and Investment Ministers’ Meetings government agencies and industry stakeholders. were held twice in 2014–15, and were chaired Austrade has a number of formal, strategic by the Minister for Trade and Investment. The partnerships and works collaboratively with other meetings were attended by counterpart state agencies and organisations. This approach helps and territory trade and investment ministers and to increase Austrade’s reach into the business covered a range of cross-jurisdictional trade community and leverages external resources, and investment issues. The ministers agreed to knowledge and skills to ensure effective continue collaboration on activities and outreach outcomes for the Australian business community to promote the use of the North Asia free trade and Australia’s economic prosperity. agreements by Australian businesses, as well as an action plan to address the key impediments Austrade also strategically engages with to investment within and across jurisdictions. key industry associations and chambers of The Senior Officials Trade and Investment Group, commerce and industry, particularly those which is chaired by Austrade, met twice in that operate in sectors where Australia has a 2014–15. The group implements decisions from comparative advantage. the Trade and Investment Ministers’ Meetings and helps to improve coordination between the Engaging with government stakeholders Australian Government and state and territory Austrade maintains close and productive governments. It also provides strategic direction working relationships with agencies within the to the operationally focused National Trade Foreign Affairs and Trade portfolio, coordinating Working Group and the National Investment international engagement and agency activity Advisory Board. to achieve broad portfolio outcomes. Austrade The National Trade Working Group is a key also maintains close working relationships mechanism for Austrade to plan and report on with a number of other Australian Government federal, state and territory international trade agencies, including the Department of the Prime development, as well as share knowledge and Minister and Cabinet, Treasury, the Department intelligence on trade craft, export opportunities of Agriculture, the Department of Education and offshore activities. The group met twice in and Training, the Department of Immigration 2014–15. It focused on aligning efforts where and Border Protection, the Department of market and industry priorities intersect, as well Industry and Science, and the Department of as coordinating free trade agreement outreach Infrastructure and Regional Development. and joint business missions.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 99 The group helps provide a more coordinated media campaign and competition held in China approach to delivering whole-of-government to raise awareness of studying in Adelaide. benefits to businesses looking to develop During the year, Austrade worked closely with international markets. the Department of Education and Training on Austrade chairs the National Investment the development of the draft National Strategy Advisory Board, which also comprises senior for International Education, which was launched representatives from state and territory by the Hon Christopher Pyne MP, Minister investment promotion agencies. The group for Education and Training, in April 2015. This met twice in 2014–15. Priorities for the board strategy provides national direction for the this year were to continue building the pipeline sustainable development of international of investment opportunities across Australia education and training in Australia, and Austrade that are ready to be introduced to overseas contributed to sections that dealt with attracting investors. The board also supported taking more of the world’s students and researchers a coordinated approach on the investment to Australia, and to marketing Australia as component of events such as Australia a high-quality provider of education and Business Week in India and the forthcoming training services. Northern Australia Investment Forum; and identifying and addressing impediments to Austrade also participated in other national investment to improve Australia’s strengths as an forums throughout the year, including quarterly investment destination. meetings of the Education Visa Consultative Committee, which is chaired by the Department Education of Immigration and Border Protection. This committee allows members of the education The State International Education Marketing sector to engage with government officials Forum, chaired by Austrade, met quarterly in on student visa issues and receive updates 2014–15. Along with Austrade, it comprises state from other government agencies, such as and territory agencies responsible for promoting Austrade. In addition, Austrade also contributed international education and training. The purpose to the department’s review of streamlined of this forum is to provide greater alignment and visa processing. cooperation in strategies and market activities. It encourages an exchange of information on Tourism relevant promotional priorities and strategies to coordinate approaches to and maximise Austrade is a member of, and provides outcomes for individual governments and secretariat services to, the Tourism Ministers’ the sector overall. Points of discussion during Meetings, which were held twice during the year. 2014–15 included an Australian International Australian, state and territory tourism ministers Education 2025 update, current and emerging and the New Zealand tourism minister discussed social media trends, an Australian Global Alumni strategic policy issues and implementation of Network update by the Department of Foreign the Tourism 2020 strategy. The tourism ministers Affairs and Trade, market reports from Myanmar are supported by ASCOT. Tourism industry and China, and a presentation from Study stakeholders also provided an active voice at the Adelaide on its Qingdao campaign—a social meetings, with chairs from the four key industry

100 Australian Trade Commission Annual Report 2014–15 02 associations—the Tourism and Transport Forum, A commitment was made to conduct bilateral the National Tourism Alliance, the Australian negotiations at the next International Civil Regional Tourism Network and the Australian Aviation Organization Air Services Negotiation Tourism Export Council—attending. The Event, with markets identified by members as parties worked together on key reforms in the priorities. Relevant government agencies also Tourism 2020 Implementation Plan agreed to provide information on the availability (2015–2020) that will enable the industry to and use of capacity entitlements; investigate reach the 2020 Tourism Industry Potential the feasibility of completing and submitting growth scenario. passenger departure cards electronically; and The Australian Standing Committee on Tourism support for industry to make representations (ASCOT), chaired by Austrade, develops, to the joint review of border fees, charges coordinates and considers tourism policies, and taxes. providing advice and making recommendations The Tourism Research Committee met twice to tourism ministers. ASCOT has responsibility for in 2014–15 to consider implementation and implementing the National Long-Term Tourism operational changes to national surveys and Strategy and updating the Tourism 2020 strategy. Tourism Research Australia’s modelling, as well It met twice during the year. as collaborative research opportunities. The The Tourism Access Working Group provides committee monitors service-level agreements a forum for senior ministers and industry between Tourism Research Australia and stakeholders to discuss strategies to support the the state tourism organisations. The Tourism tourism transport environment and foster growth Research Committee is made up of officials of the tourism sector. A key focus for the group from Austrade, Tourism Australia and the state is maintaining a comprehensive and integrated tourism organisations. The Australian Bureau approach to the needs of the Australian tourism of Statistics and the New Zealand Ministry of industry, and considering transport access, Business, Innovation and Employment were infrastructure planning and policy development. invited as observers. It met once during 2014–15 and was co-chaired by the Hon Andrew Robb AO MP, Minister for Supporting new policy initiatives Trade and Investment, and the Hon Warren During 2014–15, Austrade developed various Truss MP, Minister for Infrastructure and Regional government policy initiatives, and supported Development. The meeting focused on strategic others, including contributions to several tourism access issues and provided the industry white papers. with an opportunity to inform the Government’s deregulation agenda. Senator the Hon Michaela New complying investor visa framework Cash, Assistant Minister for Immigration and Border Protection, and the Hon Steven Ciobo MP, In October 2014, the Government announced the then Parliamentary Secretary to the Treasurer, that it would introduce a new complying also attended the working group to inform the investment framework for the Significant Investor tourism stakeholders about portfolio initiatives Visa (SIV) and a new Premium Investor Visa (PIV) such as visas, passenger facilitation, and border as part of its broader competitiveness agenda. taxes and charges. Austrade was given the role of nominator for

Part 02 / Report on performance. Outcome 1 – Programme 1.1 101 the SIV, joining state and territory governments, Input into government papers which already have a nominating role. It was also During 2014–15, Austrade contributed to cross- announced that Austrade would develop the government initiatives including: complying investment framework for the SIV and PIV, and be the sole nominator for the PIV. ›› the White Paper on Developing Northern Australia—Austrade worked with the Northern The SIV enables an applicant to obtain Australia White Paper Taskforce to identify permanent residency after investing $5 million ways to unlock the region’s commercial in complying areas over four years. One of the potential, and help overcome barriers to Government’s key objectives for the changes to Northern Australia’s trade, investment, the SIV was to see greater investment into areas international education and tourism where it can make a material difference, such as performance. Austrade participated in this innovation and commercialisation of high-quality process by making a submission in its own Australian research and development. right and placing an employee on a short- The PIV offers a more expeditious pathway to term secondment to the Department of the permanent residency, requiring $15 million of Prime Minister and Cabinet to work with complying investment over 12 months. The PIV the taskforce. will be an invitation-only programme, which ›› the Agricultural Competitiveness White aims to attract those with entrepreneurial talent Paper—Austrade provided information and skill to settle in Australia and contribute to about attracting foreign direct investment, Australia’s economic future. Through the SIV assisting food and agribusiness services and and PIV programmes, the Government hopes technology exporters, and developing and for diversification of the application source maintaining international markets. countries, and attraction of immigrants able ›› the Rethink tax: Better tax, better Australia to invest wealth and entrepreneurial skill in discussion paper—Austrade took part in an Australia’s economy. interdepartmental committee to frame the Since the new policy announcement, Austrade paper and was also part of the Department and the Department of Immigration and of Foreign Affairs and Trade Tax Policy Border Protection have consulted extensively Discussion Group, which provides input to the with stakeholders on the design of the new tax reform process. complying investment framework for the SIV ›› the Energy White Paper—Austrade provided and PIV. Austrade invited two rounds of written advice on improving the foreign direct public submissions on possible design options, investment attraction process for the energy with 68 submissions received in the first round, and resources sector. and 91 in the second round. These consultations informed design options, while a further round ›› the Australian Customs and Border Protection of formal consultations and written submissions Service’s Trusted Trader programme. informed Austrade’s final recommendations for ›› the Industry Productivity and the Minister for Trade and Investment. A new Competitiveness Agenda. complying investment framework for the SIV and the new PIV come into effect from 1 July 2015.

102 Australian Trade Commission Annual Report 2014–15 02

Steering groups and partnership agreements resources and energy, skills, and accessing global supply chains. Austrade also worked with Austrade and the Department of Immigration key industry portfolio bodies such as CSIRO and and Border Protection established a senior-level Geoscience Australia. steering group to explore opportunities to further drive Australia’s economic prosperity across the visitor economy, international education and Coordinating ministerial business missions tradeable sectors, and by winning additional Business missions are an important tool in the productive foreign investment. The group looks Government’s economic diplomacy agenda, and to balance the economic opportunity with the they support the promotion of trade, investment, integrity of Australia’s immigration system. The education and tourism around the world. Last group met twice in 2014–15 to cooperate on key financial year, a central ministerial business areas of interest such as visitor visa reform and missions unit was established within Austrade, the design and implementation of the Significant and in August 2014, the Prime Minister agreed Investor Visa and Premium Investor Visa that Austrade should be the lead agency for programme changes. coordinating the Government’s overall minister-led business missions programme. Austrade and the Department of Agriculture Austrade is well placed to take on this role—it convene an executive steering group meeting already managed the Government’s online to collaborate on shared areas of policy and minister-led business missions register, which programme interest, including the development provides companies with the opportunity to of Australia’s agricultural industries through express interest in participating in missions, and trade and investment promotion, participation has extensive business contacts and experience in national and international agriculture-related in planning and executing overseas missions. events, and sharing ideas and perspectives The unit manages smaller, targeted missions as on policy issues. Matters discussed included well as large Australia Week country promotions. food branding, promotion of Australia’s food Austrade works with other federal government safety systems, and the trade and investment agencies and state and territory governments on aspects of the Government’s Agricultural a whole-of-government presence overseas. This Competitiveness White Paper. The group met builds on the work that is being undertaken by the three times in 2014–15. Senior Officials Trade and Investment Group (see Austrade has a formal partnership agreement page 99). in place with the Department of Industry and Austrade also plays a pivotal role in supporting Science for work on trade, investment and and following up on business elements of international education priorities to ensure areas the mission programmes, which highlight of potential overlap are addressed at a senior emerging opportunities for Australian level. The agreement strengthens collaboration exporters. After a North American mission between the agencies. Two meetings were to New York and Houston in mid-2014, held in 2014–15, where the full spectrum of Austrade developed an international health the business life cycle—from conception to initiative that examined health export services, developing export markets—was covered across research and development opportunities, and sectors, including advanced manufacturing, healthcare investment.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 103 From March 2014 to 30 June 2015, the Hon Adam Giles MLA, at a high-level Austrade organised 21 minister-led business investment roundtable on Northern Australia. missions involving 1,158 companies and Delegates participated in a Singapore economic 1,520 registered delegates. and business briefing on the Comprehensive Strategic Partnership and ASEAN Economic During 2014–15, Austrade coordinated Community, and attended the 35th Singapore 14 minister-led business missions involving Lecture by Mr Abbott on ‘Our common 517 companies and 650 registered delegates. challenges: strengthening security in the region’. More information on the missions held throughout the year is provided below. India

Singapore In September 2014, Mr Abbott led a business mission to India. Accompanied by Mr Robb, In August 2014, a business mission to Singapore the visit was instrumental in improving bilateral was a valuable opportunity for Australia’s economic and trade interests between the two aerospace and aviation sector to connect with countries, and setting an ambitious agenda for global companies in this aviation transit hub. negotiation of a free trade agreement. During Singapore is also home to an aviation services, the visit, the two countries concluded the manufacturing and innovation centre. The memorandum of understanding on Cooperation mission presented strong prospects for the in the Peaceful Uses of Nuclear Energy, which participating Australian component suppliers and will allow Australia to export uranium to India. service providers to tap into Asian-centric supply Australia and India also renewed a memorandum chains. The programme included site visits to of understanding on water management, leading companies in the global aerospace including Australian expertise used in managing industry, networking with the Singapore business the Murray–Darling Basin, which will now be used community, and an aviation sector roundtable. on India’s Ganges River. Other results included The mission culminated in the Singapore– joint cooperation in sport; cooperation on Australia Joint Ministerial Council meeting, at technical vocational education and training that which there was ministerial agreement to include coincided with the launch of the New Colombo aviation in further ministerial discussions. Plan; and an Australian international education In June 2015, the Prime Minister, the Hon Tony conference focusing on research collaboration Abbott MP, visited Singapore, accompanied between universities. by the Hon Andrew Robb AO MP, and led Austrade also played a major role in the a business delegation, to further enhance delivery of the Australia Business Week in India Australia–Singapore relations with the signing programme in January 2015. This mission is of the Comprehensive Strategic Partnership by discussed in detail on pages 84–85. Mr Abbott and the Prime Minister of Singapore, Mr Lee Hsien Loong. Mr Abbott and Mr Robb In June 2015, the Hon Steven Ciobo MP, were also joined by the Premier of Queensland, Parliamentary Secretary to the Minister for Trade the Hon Annastacia Palaszczuk MP, the Premier and Investment, led an infrastructure and health– of Western Australia, the Hon Colin Barnett MP, focused business delegation to Hyderabad. and the Chief Minister of the Northern Territory, The visit built on the strong relationship

104 Australian Trade Commission Annual Report 2014–15 02 established with the Chief Minister for Andhra was an agreement to explore the practicality of Pradesh during Australia Business Week in a joint pipeline of Australian and New Zealand India, and reinforced opportunities arising from infrastructure investment opportunities, given the Australia–India Comprehensive Economic the similarity of Australia and New Zealand’s Cooperation Agreement negotiations for the infrastructure investment agendas. To capitalise services sectors. on this mission, Infrastructure Partnerships Australia will lead the testing of the concept with the business community.

Canada

In March 2015, Mr Robb led a business mission to Toronto to participate in the Prospectors and Developers Association of Canada conference. In collaboration with Austmine, the programme explored opportunities for the supply of mining equipment, technology and services, and The Hon Andrew Robb AO MP, Minister for Trade and provided participants with an understanding of Investment, speaks to attendees at an Australia Business Week in India gala reception in Mumbai, January 2015. Indigenous issues in the mining and resources Photo: Graham Crouch. sectors in Canada and Australia. An initial outcome was an agreement to progress Latin America collaboration between Indigenous leaders in both countries. In December 2014, a business mission to Latin America commenced in Rio de Janeiro, Brazil, before travelling to Colombia for a two- Middle East day programme and then on to Chile for the In April 2015, Mr Robb led an Australian mission inaugural Australia–Chile Economic Leadership of senior business and education representatives forum. Feedback from mission participants was to the United Arab Emirates, Kuwait and Saudi positive, with most reporting the visit provided Arabia. The visit coincided with Austrade’s third them with access to a useful range of contacts, annual Australia Unlimited Middle East—North with new linkages or collaborations to be Africa promotion, as well as the International progressed in the future. Conference and Exhibition on Higher Education in Riyadh, in which 29 Australian universities New Zealand participated. The programme demonstrated Australia’s capabilities across a range of sectors, In February 2015, Mr Robb led an infrastructure and highlighted investment opportunities in business mission of delegates to Christchurch Australia to significant potential investors in and Auckland. The purpose was to explore each location. opportunities for infrastructure supply, delivery and investment in New Zealand, and to strengthen the bilateral economic and trade relationship. An initial outcome of the mission

Part 02 / Report on performance. Outcome 1 – Programme 1.1 105 Papua New Guinea Supporting visits by foreign government officials In May 2015, Mr Robb led a business mission to Papua New Guinea (PNG). Participants As well as providing support for overseas visits were drawn from the resources, infrastructure, by Australian ministers, Austrade continued to services and agricultural sectors. The visit support visits to Australia by a diverse range of allowed for delegates to expand and deepen foreign government officials throughout the year. their existing business relationships in PNG, and These visits included: for Mr Robb to showcase Australia’s strengths ›› G20 Guest of Government visits by and capacity in the infrastructure, mining and His Excellency François Hollande of France, resources sectors. The visit coincided with the Chancellor Angela Merkel of Germany, Prime 31st Australia–PNG Business Forum, jointly Minister the Rt Hon David Cameron MP of the organised by the Australia–PNG Business United Kingdom, and Prime Minister Matteo Council and the Business Council of Papua New Renzi of Italy Guinea. Mr Robb was the keynote speaker. ›› Guest of Government visits by Prime Minister the Hon Narendra Modi of India, Prime Philippines Minister His Excellency Nguyen Tan Dung of Also in May 2015, Mr Robb led a business Vietnam, Foreign Minister Linas Linkevičius mission of senior representatives from of Lithuania, HM King Harald V and Queen companies with an infrastructure focus and Sonja of Norway, and Mr Hu Chunhua, Party interests in the Philippines. This visit underlined Secretary of Guangdong Province, China. Australia’s commitment to expanding business- Austrade arranged a substantial business to-business links with the Philippines and to forum coinciding with the visit by Vietnam’s economic diplomacy in the country. Participants Prime Minister, including Australian business were able to assess infrastructure partnership invitees for a state dinner and a series of opportunities, and Mr Robb advocated for one-on-one meetings with six large Australian economic reforms that will help drive further investors in Vietnam foreign investment and economic growth in ›› Joint Trade Committee meeting visit by the Philippines. Malaysian Minister for International Trade and Industry, the Hon Mustapa Mohamed, and an accompanying business delegation. Austrade worked with the Department of Foreign Affairs and Trade and the Australia–

21 1,158 1,520 509

companies have minister-led business companies were delegates registered registered on Austrade’s missions organised by represented on the to participate in the online minister-led Austrade since March missions missions business missions 2014 register

106 Australian Trade Commission Annual Report 2014–15 02

Malaysia Business Council to arrange a departmental liaison officer to the office of the business roundtable for the delegates Minister for Trade and Investment. and contributed to briefing material for the The Hon Andrew Robb AO MP held the position Hon Andrew Robb AO MP, Minister for Trade of Minister for Trade and Investment for the and Investment, at the committee meeting duration of the reporting period. In December ›› industry capability visit by Morocco’s Minister 2014, the Prime Minister announced the for Housing and City Policy, Mohamed Nabil appointment of the Hon Steven Ciobo MP as Benabdallah, to Melbourne, Sydney and Parliamentary Secretary to the Minister for Canberra to examine Australia’s expertise in Trade and Investment. He was sworn into the green building and planning position on 23 December 2014. Mr Ciobo also ›› high-level visits by Vietnam’s Minister for holds the position of Parliamentary Secretary Natural Resources and Environment; the to the Minister for Foreign Affairs and was Governor of Heilongjiang Province, China; Parliamentary Secretary to the Treasurer until the Director-General of the Communist Party 23 December 2014. in Fujian Province, China; and Indonesia’s Austrade reported on its progress towards Minister for Marine Affairs and Fisheries achieving the Government’s objectives through ›› special visitor programme for Dr Le Hong regular reports and briefing material provided to Son, the Vice-Chair of the Hanoi People’s the Minister for Trade and Investment and the Committee, Vietnam Parliamentary Secretary to the Minister for Trade ›› a delegation from the Saudi Arabian Ministry and Investment. Austrade officers also met with of Commerce and Industry to discuss how the Minister and the Parliamentary Secretary, Australia assists trade facilitation, industrial as well as their respective office staff, to give development and consumer protection. context to written briefs and discuss specific Meetings were held with Austrade and a issues when required. In 2014–15, Austrade range of agencies across government produced 194 ministerial briefs and 204 ›› AFC Asian Cup–associated visits by an ministerial submissions. Austrade also received education delegation from Brazil, a rail 317 items of ministerial correspondence delegation from Gulf Cooperation Council requiring a response, while a further 420 items of countries, and a range of investors. Austrade correspondence were processed for information. also supported a visit by Elizabeth Lehmann, CEO of Chile’s Inversiones Corso. Parliamentary inquiries and briefings During the year, Austrade appeared before, Services to government or provided submissions to, the following Austrade’s CEO reports to the minister parliamentary committees or inquiries: responsible for the trade portfolio. Austrade ›› Joint Select Committee on Northern Australia, provided services to the Minister for Trade and Pivot North Inquiry into the Development of Investment and the Parliamentary Secretary to Northern Australia: Final Report, released the Minister for Trade and Investment throughout September 2014—Austrade provided a the year, including through the provision of a submission in March 2014 as part of the Foreign Affairs and Trade portfolio

Part 02 / Report on performance. Outcome 1 – Programme 1.1 107 ›› Joint Standing Committee on Foreign Affairs, Attached agency agreements Defence and Trade inquiry into trade and Austrade administered a number of service- investment relationships with countries of the level agreements with attached Australian Middle East—Austrade appeared before a Government agencies for the delivery of public hearing with the Department of Foreign property and administrative support in Affairs and Trade (DFAT) in November 2014 overseas locations. In most cases, service- ›› Foreign Affairs, Defence and Trade References level agreements were in place in Austrade- Committee report on the Korea–Australia managed consulates-general. They included Free Trade Agreement—Austrade provided a agreements with: submission in November 2014 ›› the Department of Foreign Affairs and Trade— ›› Defence subcommittee of the Joint Standing in Ulaanbaatar and Houston Committee on Foreign Affairs, Defence and ›› the Department of Immigration and Border Trade inquiry into government support for Protection—in Dubai and Auckland Australian defence industry exports—Austrade › the Department of Agriculture—in Dubai provided a submission and appeared at the › subsequent hearing in March 2015 ›› the Australian Federal Police—in Dubai ›› Foreign Affairs, Defence and Trade References ›› AusFilm—in Los Angeles. Committee inquiry into the delivery and Austrade also employed staff on behalf of effectiveness of Australia’s bilateral aid a number of state governments to deliver a program in Papua New Guinea—Austrade mutually agreed business plan supporting provided a submission in March 2015 each state’s trade, investment and education ›› Senate Economics References Committee promotion activities in respective markets. These inquiry into the future of Australia’s automotive included agreements with: industry—Austrade appeared at the hearing ›› NSW Trade & Investment—trade and and made a statement before answering investment directors in Jakarta, Kuala Lumpur, questions in April 2015 London, Seoul and Singapore ›› Joint Select Committee on Northern Australia ›› South Australian Department of State inquiry into opportunities for expanding the Development—a Business Development aquaculture industry in Northern Australia— Manager in Hong Kong and senior investment Austrade provided a submission in May 2015 managers in Shanghai and Mumbai ›› Joint Select Committee on Trade and ›› Tasmanian Department of State Growth— Investment Growth inquiry into businesses’ Senior Business Development Manager experience in utilising Australia’s free trade in Shanghai agreements—Austrade and DFAT provided a ›› Victorian Department of Economic joint submission in June 2015. Development, Jobs, Transport and Resources—an Education Services Manager in Bogota.

108 Australian Trade Commission Annual Report 2014–15 02

Austrade delivers services to, and works with, In March 2015, Austrade introduced the these agencies and departments overseas to Economics at Austrade blog by its Chief ensure that government efforts, at Australian Economist, Mark Thirlwell. It includes analyses of and state and territory levels, are coordinated Australian and international economic trends and and targeted. can be found at www.austrade.gov.au/economics.

In 2014–15, Austrade published to its website: Promoting Australia through ›› 117 Investor Update articles, which provide online channels, media and information on the investment climate marketing in Australia ›› 65 Latest from Austrade stories, covering Austrade’s marketing, media and online issues and initiatives important to Australian teams support the agency in achieving the businesses and Austrade’s stakeholders Government’s outcomes. The following pages › 17 success stories (also known as case explain how each area contributes to the › studies) on the achievements of Australian promotion of Australia as a trading partner, exporters and international investment destination for international study or foreign in Australia investment, and to strengthening Australia’s tourism industry. This work underpins the value ›› 40 promotional videos on the Austrade that Austrade provides to Australian businesses, YouTube channel. international investors, and the education and training and tourism sectors. Media and social media Austrade works to maximise the role that Austrade online traditional and social media play in promoting In 2014–15, there were 1,831,177 visits to Australian businesses in international markets, Austrade’s website, www.austrade.gov.au, and Australia’s attractiveness as a destination for 5,722,586 page views. Around 40 per cent of productive foreign direct investment, Australia’s Austrade’s website traffic is from overseas users international education sector and Australia’s seeking information about Australian products tourism industry credentials. and services, or investing in Australia. Its media team coordinates requests from the Austrade undertook a significant update to all media, manages media issues and provides its country profiles during the year, highlighting high-level media support to Austrade’s particular opportunities in-market for Australian international network in its promotion and businesses. There are more than 200 profiles on marketing campaigns offshore, particularly www.austrade.gov.au. It is the most accessed through placement of stories and opinion pieces area of the website, receiving 831,146 views in mainstream media. The media team provides during the year. A number of significant industry Austrade with editorial and media management capability reports, which highlight Australia’s services, as well as a daily media clipping capabilities, were added to the website, and service to the offices of the Minister for Trade included digital multimedia formats for industries and Investment and the Parliamentary Secretary such as processed food, oil and gas, aged care to the Minister for Trade and Investment, and to and agribusiness. Austrade staff.

Part 02 / Report on performance. Outcome 1 – Programme 1.1 109 In 2014–15, Austrade supported visits by the Figure 19: Popular tweet from Austrade’s Twitter Minister for Trade and Investment to India, the account in 2014–15 Philippines, Papua New Guinea, Canada, New Zealand, Singapore, the United States and the Middle East; and visits by the Parliamentary 12 Jan 2015 55 Secretary to the Minister for Trade and Investment, including his speeches, remarks and media releases. The media team also worked Australia has the 13th closely with Austrade staff in India to maximise media coverage of the Australia Business Week largest economy, yet in India mission, both in India and Australia, in January 2015. only has 0.3 per cent of Social media assists Austrade to build brand the world’s population equity and disseminate information about Australian capabilities to targeted international ow.ly/3nM5Wk audiences. Austrade has an official Twitter account and market-specific Twitter accounts, as well as industry-specific LinkedIn accounts Brand Australia programme and Facebook pages. A popular tweet from the year was about Austrade’s Why Australia—2015 The Brand Australia programme provides a Benchmark Report. It is shown in Figure 19. strategic, coordinated approach to supporting Australia’s competitiveness. Competition for Austrade social media also figured prominently trade, investment, tourism, talent and influence in Australia Business Week in India, Australia’s has intensified globally, and a strong international largest-ever trade mission to India. reputation supports decision-making about A dedicated LinkedIn group was created for doing business with a particular country. business delegates. It proved an important communication tool, allowing stakeholders Australia’s nation branding presents a confident, to network before, during and after the event, contemporary and consistent vision of its ensuring that relationships developed during the strengths and potential that supports Australian mission could continue to be nurtured. business. Exporters, start-ups, small and medium-sized enterprises, education institutions, students and citizens whose paths to global

1.8M+ 40% 5.7M+ 200+

visits to Austrade’s of website traffic is from page views of Austrade’s country profiles on website overseas website Austrade’s website

110 Australian Trade Commission Annual Report 2014–15 02 business can benefit from their ‘Australian-ness’ the Foundation for Young Australians; Future will all be better placed with a consistent and Unlimited (Australia’s international education professional representation of Australia. brand); and the Department of Foreign Affairs and Trade for the Australia Day 2015 Future In 2014–15, Austrade continued to encourage Chasers campaign, which celebrated the the use of the Australia Unlimited brand by other importance and global impact of Australia’s government agencies and industry bodies as young people, as well as its international alumni. part of their international marketing activities and at major international events. The brand featured In December 2014, the Australia Unlimited prominently during Australia Business Week in Showcase of Food Export Excellence campaign India in January 2015, as well as at more than profiled the export capability of a range of 120 associated events. Australia’s premium food producers, and supported Tourism Australia’s ‘Restaurant The Australia Unlimited brand was also used Australia’ campaign by highlighting a number of consistently across international events, the country’s best food tourism destinations. including Investing in African Mining Indaba in South Africa, Australia Unlimited MENA 2015 The Brand Australia programme’s assets, in the Middle East and North Africa region, including its visual brand mark and digital SIAL China (Asia’s leading food and beverage publishing platforms, continue to support the exhibition), and the International Mining and whole-of-government approach to enriching and Resources Conference in Melbourne. enhancing Australia’s international reputation as a global business partner and citizen, and its Apart from Austrade, other government agencies objective of increasing the nation’s economic that have used the Australia Unlimited brand prosperity through global engagement. include the Department of Foreign Affairs and Trade, the Defence Materiel Organisation and the Commonwealth Scientific and Australian Export Awards Industrial Research Organisation. The brand is The Australian Export Awards programme, trademarked in most cases until 2020–21. presented by Austrade and the Australian Chamber of Commerce and Industry, delivered Around 70 new stories profiling Australians its 52nd awards in 2014, making it one of and Australian achievements were also made the longest-running business awards series available under a Creative Commons licence on in Australia. a number of digital platforms, including www.australiaunlimited.com. Successful The national awards ceremony, held in Sydney campaigns on Twitter, Facebook and LinkedIn in November 2014, was hosted by the Hon have seen the programme’s number of social Andrew Robb AO MP, Minister for Trade and media followers increase to nearly 15,000. Investment. During the evening, 74 national finalist companies were honoured before an In 2014–15, the Brand Australia programme audience of 530 business and government has undertaken a number of collaborative representatives. The finalist companies were campaigns to expand the offshore promotion of competing for 12 national awards across a range Australia’s commercial, intellectual and creative of industry sectors, including a new awards credentials. These include partnerships with

Part 02 / Report on performance. Outcome 1 – Programme 1.1 111 category for online sales, to capture this growing To help promote gender balance among the area for Australian exporters. awards’ finalists, the Australian Export Awards team worked with the Women in Global Earlier in the day, the national finalists attended Business programme on initiatives to encourage a ‘masterclass’ that examined global growth more women to apply for the awards, including a sectors and the opportunities that these present webinar targeting women-led businesses. for Australian exporters. This was followed by a networking lunch attended by finalists GP Graders, a Victorian company that and sponsors. manufactures cherry-grading machinery, was recognised as the overall winner and recipient In 2014, the Commonwealth Bank marked of the Australian Exporter of the Year award for 27 years as a sponsor of the Australian Export 2014, as well as the Manufacturing award. Awards; the Export Finance and Insurance Corporation (Efic) marked 21 years; and the Australian Made Campaign celebrated 15 years of support.

The finalists, who progressed from the eight state and territory export award programmes, were responsible for more than $3.1 billion in export sales in 2013–14, and provided employment to more than 41,000 people.

Creative Industries Award Minerals, Energy and Related The Creature Technology Services Award Company (VIC) Blast Movement Technologies (QLD) Education and Training Award Charles Darwin University (NT) Online Sales Award Halfbrick (QLD) Environmental Solutions Award The 52nd Australian Export TTG Transportation Technology Regional Exporter Award Awards winners were: (NSW) Bega Cheese (NSW)

Australian Exporter of the Health and Biotechnology Small Business Award Year Award Award Turbosmart (NSW) GP Graders (VIC) SDI Limited (VIC) Pictured: The Hon Andrew Robb AO MP, Minister for Trade and Investment, Agribusiness Award Information and Communication presenting the Australian Exporter of the Australian Agricultural Company Technology Award Year award to Stuart Payne, Director, (QLD) Opmantek (QLD) GP Graders, at the 52nd Australian Export Awards in Sydney, Business Services Award Manufacturing Award November 2014. Photo: Life is Now Photography. Cardno (QLD) GP Graders (VIC)

112 Australian Trade Commission Annual Report 2014–15 Outcome 1 02

Programme 1.2: Programmes to promote Australia’s export and other international economic interests

Objective Programme 1.2 highlights Administer programmes that support Australian business engagement in international business, ›› 94 per cent of grant recipients under and provide an incentive for small to medium the Export Market Development Grants business to enter into export and grow to (EMDG) scheme reported that the receipt become sustainable exporters. of a grant supported their business to become a more sustainable exporter. ›› A survey conducted for the 2015 review Deliverables and key of the EMDG scheme showed that overall performance indicators exports by EMDG firms were estimated to have increased by 75 per cent from Tables 5 and 6 summarise the results for 2012–13 to 2013–14.(a) programme 1.2 against the deliverables and key performance indicators set out in Austrade’s ›› 3,195 EMDG applications were received in 2014–15 Portfolio Budget Statements. 2014–15, an increase of 18 per cent on the previous year. ›› There were 3,137 EMDG recipients in 2014–15, an increase of 28 per cent on the previous year. ›› Austrade supported the legislated review of the EMDG scheme, undertaken by Michael Lee, with the final report provided to the Minister for Trade and Investment on 30 June 2015.

(a) The survey conducted for the 2014–15 Annual Report was part of a detailed periodical review of the EMDG scheme.

Part 02 / Report on performance. Outcome 1 – Programme 1.2 113 Table 5: Summary of results for programme 1.2 deliverables

Deliverables

Export Market Development Grants scheme

Administration of the Export Market Development Grants scheme, providing partial reimbursement for expenditure on eligible export promotion activities. Austrade administered the Export Market Development Grants (EMDG) scheme in PAGE accordance with the Export Market Development Grants Act 1997, maintaining a 124 strong focus on risk management and fraud control. Number of grant applications. A total of 3,195 EMDG applications were received in 2014–15, an increase of PAGE 18 per cent over the 2,715 applications received in 2013–14, and within the 117 budgeted target of 3,000 to 3,500. Number of grant recipients. There were 3,137 EMDG recipients in 2014–15, an increase of 28 per cent over the PAGE 2,445 recipients in 2013–14, and within the budgeted target of 2,800 to 3,300. 117

Asian Business Engagement Plan

Administration of the Asian Business Engagement Plan, which is a competitive, merit-based grant programme, in accordance with the plan’s guidelines and the Commonwealth Grants Rules and Guidelines. Austrade administered the Asian Business Engagement Plan for the reporting PAGE year. The programme was closed on 30 June 2015. 126

Number of grant applications. In 2014–15, there were 68 grant applications.

114 Australian Trade Commission Annual Report 2014–15 02

Table 6: Summary of results for programme 1.2 key performance indicators

Key performance indicators

Export Market Development Grants scheme

Proportion of EMDG recipients reporting that the receipt of a grant supported their business to become a more sustainable exporter. In 2014–15, Austrade’s Service Improvement Study found that 94 per cent of EMDG recipients indicated that the receipt of a grant supported their business to become a more sustainable exporter. This is the first year that this data is available.

Proportion of EMDG recipients reporting that the receipt of a grant enabled them to grow their international revenue. A survey conducted for the 2015 review of the EMDG scheme showed that overall exports by EMDG firms were estimated to have increased by 75 per cent from 2012–13 to 2013–14.(a)

Asian Business Engagement Plan

Proportion of grant recipients reporting the receipt of a grant helped expand the capability of their organisation to assist members to access in-market business networks and develop new business relationships in Asia. 71.4 per cent of grant recipients surveyed reported positive outcomes,(b) with 28.6 per cent reporting that it was too early to determine outcomes at this stage.

(a) The survey conducted for the 2014–15 Annual Report was part of a detailed periodical review of the EMDG scheme.

(b) These results reflect the outcomes from single-year grant recipients in the 2013–14 grant round, as multi-year grant projects for 2013–14 and grant projects from the 2014–15 grant year had not concluded at the time of reporting. Of the 16 organisations surveyed, 87.5 per cent provided responses.

Part 02 / Report on performance. Outcome 1 – Programme 1.2 115 Export Market Development Grants scheme The Export Market Development Grants (EMDG) The review took into account the scheme’s scheme is a key Australian Government financial provisions, including the eligibility of individuals, assistance programme for small to medium- businesses and organisations; products and sized businesses. It provides an incentive for services that applicants may seek to export; aspiring and growing export-ready businesses the export promotion expenses that applicants to increase their international marketing may incur and the adequacy of coverage and promotion expenditure to achieve more of export promotional costs; and other sustainable international sales, and also provides scheme parameters. businesses with an opportunity to enter and The review also considered the need for: embed themselves in global value chains, which › simplicity in scheme rules encompass 80 per cent of global trade. › ›› limitations on compliance costs for applicants Review of the EMDG scheme and administrative efficiency In December 2014, in accordance with ›› scheme accountability, and the proper section 106A of the Export Market Development management of public money Grants Act 1997 (EMDG Act) (as amended), the ›› consistency with overall government policy. Hon Andrew Robb AO MP, Minister for Trade With these issues in mind, the review looked at and Investment, announced the appointment whether the EMDG scheme should be extended of Michael Lee, former Chief Executive Officer and, if so, the period of extension, options for of Zip Industries, to conduct a review of the improved performance of the scheme, and EMDG scheme. options for funding scheme administration costs. The review was completed in June 2015 and To assist with the review, public submissions a report was provided to the Minister for Trade were invited and made publicly available on and Investment on 30 June 2015. In accordance the Austrade website, www.austrade.gov.au. with the provisions of the EMDG Act, the Minister In addition, existing Austrade and Australian is required to present the report to Parliament Bureau of Statistics research was taken into within 15 sitting days of that date, when the consideration, including Austrade’s annual outcomes of the review will be announced. Service Improvement Study and client feedback The review provided a comprehensive data, as well as previous EMDG scheme examination of the effectiveness of the EMDG reviews and a literature review of firms’ export scheme, and focused on a number of areas, promotional activities and their effects. including whether the EMDG scheme, as Two research studies, which built on previous currently structured, was effective in: similar studies carried out in 2008 and 2009, ›› increasing the number of businesses that were also commissioned to inform the review, develop into new exporters including an econometric study and a survey of ›› increasing the number of businesses that the impact of the scheme on exporters and the achieve sustainability in export markets and Australian economy. generate additional exports ›› further developing an export culture in Australia.

116 Australian Trade Commission Annual Report 2014–15 02

EMDG scheme performance Table 7 shows that a total of 3,137 grants, worth $140.8 million, were paid to EMDG recipients The number of EMDG applications received in 2014–15, an increase of 28 per cent in grant in 2014–15 increased by 18 per cent, numbers and 24 per cent in the total value with 3,195 grant applicants compared to of grant payments compared to 2013–14. 2,715 applicants in 2013–14. This is most likely This outcome follows the reduced demand of due to changes made by the Government 11.3 per cent in grant numbers and 5.6 per cent in 2014 to enhance access to the scheme, in grant payments in 2013–14. following the allocation of an additional $50 million to the scheme over four years A total of 84 grants, worth $4.8 million, were commencing in 2013–14. The increase in made under the special ‘approved body’ applications may also be partly due to the boost category to non-profit export-focused industry to export prospects triggered by the fall in the bodies which, while not exporting themselves, Australian dollar that started in early 2013. In the undertake export promotion on behalf of their previous year, grant applications had declined by industry or membership. This category includes 11 per cent. industry associations and regional tourism bodies, and also firms cooperating in joint venture–style marketing arrangements.

Table 7: Payments to EMDG recipients, 2010–11 to 2014–15

Variance 2013–14 2010–11 2011–12 2012–13 2013–14 2014–15 to 2014–15 (%) Total grant 4,306 2,993 2,757 2,445 3,137(a) +28 recipients Value of grants 143.1 125.6 120.4 113.6 140.8(b) +24 ($ million)

(a) Includes 2,943 recipients for the 2013–14 grant year and 194 recipients carried over from previous grant years.

(b) Includes the value of grants for the 2013–14 grant year of $130.3 million, plus the value of 194 grants from previous years and supplementary payments to grant recipients from previous years. A total of $140.8 million was paid from the 2014–15 budget.

Although almost all grants are paid the year after applicants’ export promotion expenditure has been incurred (the grant year), in any financial year, there will be some grant payments that relate to previous grant years. To allow a comparison between the number of recipients and applicants relating to the same grant year, Table 8 provides a profile of grants that were paid in 2014–15 to the 2013–14 grant year applicants only. A comparison with previous years is also provided.

Part 02 / Report on performance. Outcome 1 – Programme 1.2 117 Table 8: Profile of EMDG applicants and recipients, by grant year, 2009–10 to 2013–14

Variance 2009–10 2010–11 2011–12 2012–13 2013–14 2012–13 to grant year grant year grant year grant year grant year 2013–14 (%) Total grant 4,585 3,277 3,045 2,715 3,195 +18 applicants Assessed eligible 167.0 120.2 113.5 106.6 143.6 +35 grant demand ($ million) First-time grant 1,379 867 913 842 971 +15 applicants Total grant 4,128 2,874 2,643 2,332 2,943 +26 recipients First-time grant 1,111 662 685 632 793 +22 recipients Value of grants 130.2 120.2 113.5 106.6 130.3 +22 ($ million) Average grant ($) 31,531 41,818 42,950 45,708 44,270 –3 Median grant ($) 25,050 28,421 28,182 30,862 33,499 +9 Recipients from 1,029 631 562 478 441 –8 rural and regional areas(a) Value of exports 4.6 3.2 3.1 2.8 3.9 +39 generated by grant recipients ($ billion) Employees of 82,465 103,557 85,964 59,227 62,931 +6 recipients

(a) The methodology used in classifying grant recipients as ‘rural and regional’ has changed to a more accurate GIS-based system for this year’s report.

The average grant paid in 2014–15 to 2013–14 grant year recipients was $44,270 (down 3 per cent) and the median grant was $33,499 (up 9 per cent). The scheme continued to provide strong support to regional and rural Australia, with 441 grants (15 per cent) paid to businesses in those areas. While the EMDG scheme supports a range of business types, companies are the dominant category. In the 2013–14 grant year, 92.2 per cent of EMDG recipients were in that category (Table 9).

118 Australian Trade Commission Annual Report 2014–15 02

Table 9: EMDG recipients by business type, 2013–14 grant year

Number of Total grants Business type recipients Percentage paid ($ million) Company incorporated in Australia 2,713 92.2 122.4 Individual 70 2.4 1.5 Partnership existing under Australian law 64 2.2 1.8 Approved body 60 2.0 3.6 Cooperative/association 19 0.6 0.6 Body corporate for public purpose 14 0.5 0.3 Approved joint venture 3 0.1 0.2 Total 2,943 100 130.3

Small exporters continue to be the largest category of EMDG recipients, with 72 per cent of 2013–14 grant year recipients reporting annual income of $5 million or less (Figure 20), 72 per cent reporting fewer than 20 employees (Figure 21), and 74 per cent reporting export earnings of $1 million or less (Figure 22). A breakdown of EMDG recipients by state and territory is shown in Figure 23 and Table 10.

Figure 20: EMDG recipients by annual income, Figure 21: EMDG recipients by number of 2013–14 grant year employees, 2013–14 grant year

3.7% 6.4% 6.9%

9.1% 26.5%

31.6% 17.1% 12.4%

19.4% 26.2%

40.6%

0 to 4 50 to 99 Up to and including $0.5m >$0.5m–$2m >$2m–$5m 5 to 19 20 to 49 100+

>$5m–$10m >$10m–$20m >$20m Note: Numbers do not add up to 100% due to rounding.

Part 02 / Report on performance. Outcome 1 – Programme 1.2 119 Figure 22: EMDG recipients by annual export Figure 23: EMDG recipients by state and earnings, 2013–14 grant year territory, 2013–14 grant year

1.0% 1.7% 0.7% 1.7% 0.4%

4.0% 7.0% 17.0%

8.8%

19.8% 38.2%

14.2%

56.8% 28.7%

Nil Up to and including $1m >$1m–$5m NSW VIC QLD WA SA TAS ACT NT >$5m–$10m >$10m–$20m >$20m

Table 10: EMDG recipients by state and territory, 2012–13 and 2013–14 grant years

State/territory 2012–13 grant year 2013–14 grant year

Payments Payments Recipients ($ million) Recipients ($ million) NSW 949 49.3 1,125 54.5 VIC 645 29.2 845 38.2 QLD 322 11.4 418 16.0 WA 188 7.9 259 11.2 SA 149 5.7 206 7.3 TAS 37 1.3 49 1.5 ACT 29 1.5 29 1.3 NT 13 0.4 12 0.3 National 2,332 106.6 2,943 130.3

Note: Some figures have been rounded.

120 Australian Trade Commission Annual Report 2014–15 02

By broad industry classification, the majority of EMDG recipients (64 per cent) in the 2013–14 grant year were in service industries, with a further 31 per cent in manufacturing and 5 per cent in the primary sector (Figure 24). Tourism, education and culture, and ICT services dominated among services recipients. This compares to these industry sectors’ share of gross value added of around 82 per cent for the services sector, 7 per cent for the manufacturing sector, and 11 per cent for the mining and agricultural sector (where services includes construction, utilities and ownership of dwellings).

Figure 24: EMDG recipients by industry, 2013–14 grant year

18 16.8% 16.2% 16 14 14.0% 12 11.3% 11.8% 10.6% 10 8.0% 8 6.4% Recipients (% ) 6 5.0% 4 2 0 Primary Food and Machinery and Other Tourism and ICT services Professional, Education and Other beverage equipment manufacturing related scientiﬁc and culture services manufacturing manufacturing industries technical services

PrimaryManufacturing Services

The principal market targeted by EMDG recipients continued to be the United States, with 56.6 per cent of all recipients paid grants for promotion activities to this market. Other high-ranking markets were the United Kingdom, mainland China, Singapore, Germany and Hong Kong (Figure 25). The major mover over the past 10 years has been China. The advertising expenditure category was the largest expenditure category as a proportion of total assessed expenditure, followed by marketing visits and overseas representation costs (Figure 26).

Figure 25: Top six markets targeted by EMDG recipients, 2013–14 grant year

1,800 56.6%

1,600

1,400

1,200 32.4% 1,000 30.2%

800 21.2% 600 15.9% 15.8% Number of recipients 400

200

0 United States United Kingdom China Singapore Germany Hong Kong

Note: Recipients may promote to more than one country.

Part 02 / Report on performance. Outcome 1 – Programme 1.2 121 Figure 26: EMDG recipients by expenditure category, 2013–14 grant year

28% 27% 100

22%

50 11%

5% Assessed expenditure ($ million) 3% 3%

0.3% 0.1% 0

visits

Advertising registration IP Marketing Product samples Overseas buyers Communications Promotional events Marketing consultants Overseas representatives

EMDG scheme funding Consultant Quality Incentive Programme

The EMDG scheme’s appropriation for 2014–15 The Export Market Development Grants was $137.9 million, and a further $9.0 million was (Extended Lodgement and Consultant Quality carried over from previous appropriations for Incentive) Determination 2012 provides the grants from previous years. framework for a voluntary system aimed at improving the quality of applications prepared by For the 2013–14 grant year, 2,122 businesses EMDG consultants. (72 per cent of all recipients) received their full grant entitlements up to the initial payment For 2014–15, EMDG consultants who had ceiling of $60,000, and 821 businesses received a demonstrated record of lodging at least more than the initial payment ceiling, of which five applications over the whole preceding their second-tranche payment above that ceiling lodgement period (2013–14), with a total grant was paid at 65.28 cents in the dollar. Eligible adjustment rate of no more than 9 per cent, and demand for grants was higher than available had applied to participate in the programme, funds, resulting in the need to apply this payout were granted an extended period of an factor to second-tranche payments for grants additional three months for lodging applications above $60,000. for EMDG grants under this determination.

Total cash funding used by the scheme in In 2014–15, 47 eligible EMDG consultants were 2014–15 was $146.9 million, including approved as participants in the programme and $9.0 million carried over from 2013–14 for grants were listed on the Austrade website. from that year. Of the funds appropriated in 2014–15, $6.1 million, or 4.4 per cent of the appropriation, was spent on administration.

122 Australian Trade Commission Annual Report 2014–15 02

EMDG scheme helps SAGE Automation access global supply chains

of which is now generated through the supply of its services and products to global supply chains.

Adrian Fahey, Chief Executive of SAGE, is full of praise for the role that the EMDG scheme played in enabling the company to break into computerised global supply chains. ‘The ability for SAGE to access funding to assist us in building our export market has really SAGE Automation is Australia’s leading enabled our company to take our expertise independent system integration company, to a world market. The benefits of exporting specialising in industrial automation and are twofold—not only does it provide the control systems. As a trusted adviser to its opportunity to expand your own business, clients, it designs, constructs, supports and but it also gives you great insight into what improves industrial control and automation is driving business outside of your domestic solutions, and provides advanced training to market, pushing you to innovate and stay enhance the skills of those who work with ahead of the market. Without a doubt, the this technology every day. success we have achieved in our business SAGE works with customers in the defence, outside of Australia has been greatly assisted infrastructure, manufacturing, mining and by our access to the EMDG scheme’, utilities sectors to deliver certainty in their said Adrian. control and automation challenges. Its Adrian strongly encourages other Australian customers include Glencore, BHP Billiton, companies to break into computerised Orica and Santos. global supply chains, and highlighted the Founded by Andrew Downs in 1994, opportunities in an article published on from rather humble beginnings, by 2008, 19 April 2015 in the Australian Financial SAGE had developed into a $40 million Review, titled ‘Australian firms must catch up business. Its export efforts were supported with high-tech global supply chains’. by four export market development grants Pictured: SAGE’s industrial automation and control during the 2000s until 2009, after which it systems at work. Photo: SAGE Automation. outgrew EMDG eligibility, having reached a turnover of more than $50 million, much

Part 02 / Report on performance. Outcome 1 – Programme 1.2 123 Communication and promotional activity While striving for faster turnaround and better client service, Austrade maintained its strong During 2014–15, Austrade’s EMDG focus on risk management and fraud control, communication activities focused on alerting which included the following measures: EMDG clients, including grant applicants, consultants and industry bodies, to the ›› All applications were subject to appropriate legislated provisions, guidelines and procedures levels of assessment scrutiny, on a attached to the EMDG Act. Publicity was also risk-managed basis. given to the option of grant applicants using ›› Claimed grant amounts processed in 2014–15 EMDG consultants approved under the EMDG were adjusted down by a total of $18.7 million Consultant Quality Incentive Programme, which (10.9 per cent) as a result of Austrade’s provided for an extended grant lodgement assessment activities during the year. period of three months to 3 March 2015. ›› One person was convicted of fraud against EMDG success stories, featured in EMDG the EMDG scheme during the year. At newsletters and on EMDG webpages, 30 June 2015, there were no persons before highlighted the export successes of the court for alleged fraud, and no cases were applicants and the role the scheme plays with the Commonwealth Director of Public in helping Australian businesses become Prosecutions for consideration as to whether sustainable exporters. to commence court proceedings.

Austrade also undertook mail-outs to inform During 2014–15, 57 of the applications EMDG clients about new developments, and processed resulted in a request for an internal conducted workshops to improve applicants’ Austrade review of the initial grant assessment, understanding of the scheme. down from 69 in the previous year. This appeal rate was 1.7 per cent of applications processed.

Fortieth anniversary of the EMDG scheme Details of appeals made by EMDG applicants This year marked 40 years of the EMDG scheme. to the Administrative Appeals Tribunal (AAT) Established on 1 July 1974, the scheme has are shown in Table 11. Three appeals by EMDG since assisted tens of thousands of exporters, applicants were finalised during 2014–15, with mostly small and medium-sized enterprises, to all three decided by the AAT in Austrade’s become sustainable exporters to a wide range favour. Two AAT appeals were in progress at of overseas markets. 30 June 2015.

Administrative performance, risk and fraud control

Austrade processed 3,087 (96.6 per cent) of 2013–14 grant year applications within the 2014–15 year.

124 Australian Trade Commission Annual Report 2014–15 02

Table 11: Appeals to the Administrative Appeals Tribunal under the EMDG Act in 2014–15 PMD International attributes its success to EMDG scheme

Number of appeals in progress at 3 1 July 2014 Number of appeals received from 2 1 July 2014 to 30 June 2015

Total 5 Appeals withdrawn, finalised or settled 0 prior to hearing Decisions handed down by the AAT 3 PMD International Pty Ltd manufactures and Decisions handed down by the Federal 0 supplies chainsaw, lawnmower and brush- Court cutter parts and accessories from China Total 3 to more than 50 countries. Paul Duggan, Director of PMD, said, ‘We are an Australian Number of appeals in progress at 2 company making and selling our products 30 June 2015 from China to our world distribution network, which is now very well cemented. EMDG No applicants were denied a grant in 2014–15 support and funding made this all possible. under the ‘not fit and proper’ provisions in We could not have done it without EMDG assistance.’ section 87AA of the EMDG Act, and 12 cases were completed with no ‘not fit and proper’ PMD has accessed global supply chains to findings. No appeals against ‘not fit and proper’ supply its wide range of mechanical parts determinations were lodged, and no applicants and accessories to global producers and distributors. It consolidates all orders into had section 73 of the EMDG Act applied for a single shipment, eliminating the issues, failing to respond to Austrade’s request for cost and risk involved in dealing with information. At 30 June 2015, 11 companies were multiple suppliers. under review under section 87AA. PMD has been the recipient of seven export No EMDG consultants were found to be market development grants during the ineligible to lodge EMDG grant applications past seven years, amounting to more than on behalf of their clients under the ‘not fit and $380,000. Over that time, PMD’s annual proper’ provisions for EMDG consultants in turnover from international sales has grown to more than $7 million, and continues section 79A of the EMDG Act. One case was to expand. completed, which did not result in a ‘not fit and proper’ finding. Pictured: Qualified chainsaw operators put PMD’s Archer Chain through its monthly quality tests on Australian hardwood and softwood. Photo: PMD International.

Part 02 / Report on performance. Outcome 1 – Programme 1.2 125 Asian Business Engagement Plan The Asian Business Engagement Plan, a Since funding for the Asian Business merit-based, competitive grant programme Engagement Plan commenced on 1 July 2013, administered by Austrade, was closed on Austrade has awarded a total of 45 grants 30 June 2015. No further grant rounds will be (including 16 multi-year grants) to Australian made available. member-based business organisations. Total grant expenditure under the programme is A grant round was conducted in 2014–15, expected to be $3.7 million, based on existing with 18 grants awarded to Australian member- funding commitments. based business organisations, encompassing 12 national bodies, three state and territory Funding commitments for multi-year projects organisations, one regional organisation contracted under Asian Business Engagement and two Australian offshore organisations. Plan grant rounds will continue to be supported A diverse range of sectors were represented, by Austrade, with nine projects concluding by including food and agribusiness, infrastructure, 30 June 2016 and three projects concluding by composites, automotive, textiles, education 30 June 2017. and training, services, medical devices, and Information on grants awarded by Austrade sports medicine. under this programme is available at www.austrade.gov.au.

Milena Bliss Senior Trade Adviser, Sydney

In the 11 years that worked as a procurement specialist for the Milena Bliss has worked Auckland District Health Board, as an IT at Austrade, she has portfolio contract manager with AMP, and as held a variety of roles, a contract negotiator for a global outsourcing including Business systems integrator. Development Manager Originally from Bulgaria, where she in Auckland, and completed a degree in international Investment Adviser economic relations, Milena arrived in Australia and now Senior Trade Adviser in Austrade’s in 1995. ‘I grew up in Eastern Europe so my international health team, based in Sydney. insights into the cultures of the region—and Milena’s work focuses on the health, speaking Bulgarian and Russian—have proven biotechnology and ICT sectors, and her very useful in assisting Australian exporters to previous career experience has been an access opportunities there. It’s a region that asset to understanding the challenges is developing rapidly and has much untapped faced by exporters, as she encountered potential’, she said. many of the same issues herself when she

126 Australian Trade Commission Annual Report 2014–15 Outcome 2 02

The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas.

Programme 2.1: Consular and passport services

Objective Programme 2.1 highlights To support and assist Australians travelling ›› Austrade received 13,486 passport and working overseas through the delivery applications and 98 per cent were of effective consular services, efficient processed without error. passport services, access to travel advice and preparations for high-risk scenarios through ›› 99.5 per cent of routine passport practical contingency planning in locations applications were processed and travel overseas where Austrade has consular documents delivered to clients within three management responsibilities. working weeks. ›› 1,053 emergency travel documents were issued overseas within two working days Deliverables and key of application. performance indicators ›› 891 Australians overseas were provided Tables 12 and 13 summarise the results for with high-quality and responsive programme 2.1 against the deliverables and key consular support. performance indicators set out in Austrade’s ›› 12,558 notarial acts were performed 2014–15 Portfolio Budget Statements. throughout the year.

Part 02 / Report on performance. Outcome 2 – Programme 2.1 127 Table 12: Summary of results for programme 2.1 deliverables

Deliverables

Comprehensive, responsive, high-quality consular services are delivered to an increasing number of Australian travellers and citizens living overseas, including notarial services and assistance with welfare issues, whereabouts enquiries, arrest or detention matters, death and medical emergencies. Austrade provided high-quality and responsive consular support to PAGE 891 Australians overseas, including assistance to 180 people arrested or 131 imprisoned overseas, 120 people requiring medical assistance or hospitalisation, and support to the families of 83 people who died overseas.

High-quality passport services are provided to Australians, including processing new passport applications, registering lost or stolen passports, issuing emergency passports, and detecting passport fraud. Austrade received 13,486 passport applications and 98 per cent were processed PAGE without error. 131

Consular contingency planning is reviewed and updated annually and effective contingency planning is undertaken for major events or high-risk scenarios, including through regular reviews of procedures and available resources, training of staff and coordination with other government agencies and foreign governments. During the year, Austrade facilitated 11 test exercises of consular contingency PAGE plans and developed specific plans for events overseas. Austrade consular staff 130 continued to receive contingency planning and crisis response training.

New passport applications received. Austrade received 13,486 new passport applications in 2014–15 (up by PAGE 16.5 per cent on the previous year). 131

Number of notarial acts. Austrade performed 12,558 notarial acts in 2014–15 (down by 12 per cent on the PAGE previous year). 131

128 Australian Trade Commission Annual Report 2014–15 02

Table 13: Summary of results for programme 2.1 key performance indicators

Key performance indicators

In accordance with the Department of Foreign Affairs and Trade Passport Client Services Charter:

Urgent passport issues are dealt with in a timely and responsive manner. Where a priority processing fee is paid, the passport is to be provided within two working days. Austrade provided responsive passport services to Australians with urgent travel PAGE needs, issuing 1,053 emergency travel documents overseas within two working 131 days of application. Routine passports are issued within three weeks.(a) 99.5 per cent of routine passport applications were processed and travel documents delivered to clients within three working weeks. In accordance with the Department of Foreign Affairs and Trade—Austrade memorandum of understanding on the delivery of consular and passports services:(b)

Notarial services are to be delivered within three working days of the lodgement of documents from a client. During 2014–15, Austrade did not have a specific system in place to measure the length of time taken to carry out notarial services. However, as notarial services are generally carried out at the time documents are presented or at an arranged appointment time, the majority of notarial services were delivered within three working days of the lodgement of documents, and Austrade has received no complaints from clients on notarial services provided. A new consular information system will be in place in Austrade posts from July 2015, providing more accurate reporting of this measure.

Normal passport applications are scanned within 24 hours.(c) 98.2 per cent of the 13,486 passport applications received at Austrade posts were scanned within 24 hours.

(a) In Austrade’s 2014–15 Portfolio Budget Statements, this key performance indicator (KPI) included an issuing timeframe of 10 working days. While historically Austrade has met this KPI, this timeframe has been amended to three weeks to align with the DFAT Passport Client Services Charter, which was changed during the year.

(b) In Austrade’s 2014–15 Portfolio Budget Statements, this subheading referred to the Department of Foreign Affairs [and Trade] Consular Services Charter. This should have referred to the Department of Foreign Affairs and Trade—Austrade memorandum of understanding on the delivery of consular and passport services and has been changed accordingly.

(c) In Austrade’s 2014–15 Portfolio Budget Statements, this KPI included a reference to a 3 per cent tolerance, which historically Austrade has met. This tolerance reference has been removed to align with the DFAT Passport Client Services Charter, which was changed during the year. The KPI has also been moved from under the DFAT Passport Client Services Charter subheading to sit under the Department of Foreign Affairs and Trade—Austrade memorandum of understanding on the delivery of consular and passport services.

Part 02 / Report on performance. Outcome 2 – Programme 2.1 129 Austrade-managed consulates Austrade provided support throughout the Austrade-managed consulates provide a year to Australian citizens and permanent range of services to Australian travellers and residents travelling and working overseas by Australian citizens living overseas, including delivering prompt, effective and courteous notarial services; assistance with welfare issues, consular assistance and accurate and timely missing persons, whereabouts enquires, arrest passport services. Austrade also provided or detention matters and medical emergencies; access to current travel advice, practical support for victims of serious crime; processing contingency planning and rapid crisis response new passport applications and replacing lost in locations overseas where it has consular or stolen passports; and detecting attempted management responsibilities. document or identity fraud.

At 30 June 2015, Austrade operated consulates for the Australian Government in 17 overseas Contingency planning and locations, representing 10 per cent of the total crisis-related assistance number of Australian diplomatic and consular Austrade-managed consulates continued to points of service (Table 14). The number of build collaborative working relationships with Austrade-managed consulates increased other government and non-government agencies from the previous year with the opening of the to facilitate effective crisis-related assistance. Consulate-General in Houston, United States, in Consulates refined their contingency planning for May 2015. major events and improved their preparedness for potential high-risk scenarios that may affect the safety and welfare of Australians overseas. Table 14: Austrade-managed consulates at 30 June 2015 During the year, Austrade facilitated 11 test exercises of consular contingency plans and developed event-specific plans for events such Auckland Prague(a) as the FIFA World Cup, with matches held in Sao Paulo in June and July 2014, and the National Bogota San Francisco Rugby League Nines event held in Auckland in Dubai Sao Paulo February 2015. Eight Austrade staff received Frankfurt Sapporo contingency planning and crisis response Fukuoka Toronto training through Department of Foreign Affairs and Trade–run courses, with a further 17 staff Houston Ulaanbaatar receiving consular training, which included (a) Istanbul Vancouver elements of contingency planning. Milan Vladivostok(a) Austrade worked closely with Australian Osaka embassies and high commissions and the (a) Consulates managed by an Honorary Consul. Department of Foreign Affairs and Trade consular operations and passport operations branches in Canberra throughout the year, especially when dealing with complex cases.

130 Australian Trade Commission Annual Report 2014–15 02

Contingency planning in response to Sao Paulo water crisis

cooperation with local government agencies, other foreign government representatives and the Australian Embassy in Brasilia.

A phased action plan has been developed encompassing employee work health and safety issues, the delivery of services to clients, and a strategy for providing accurate and timely advice to Australian travellers and residents. Austrade has also established Austrade-managed consulates continuously an onshore working group to support the assess emerging high-risk scenarios and Consulate-General’s planning activities and take steps to ensure that the welfare of work through possible scenarios that might Australians is protected. In response to unfold during this ‘slow burn’ crisis, and to an unprecedented water crisis in Sao coordinate Austrade’s responses with the Paulo, which is experiencing dire water Department of Foreign Affairs and Trade. shortages leading to increased health Pictured: Staff from Austrade’s Consulate-General in Sao risks and heightened protest activities, Paulo discuss the water crisis in that city, and Austrade’s Austrade’s Consulate-General in Sao Paulo response to the crisis as part of its contingency has reviewed its consular options, in close planning activities. L–R: Paula Frodl, Daniel Meninelli and Sheila Lunter. Photo: Austrade.

Consular and passport services urgent travel needs, issuing 1,053 emergency travel documents overseas within two working In 2014–15, Austrade provided high-quality and days of application. responsive consular support to 891 Australians in difficulty overseas. This included assistance Accuracy rates for processing passport to 180 people arrested or imprisoned overseas, applications were high, with 98 per cent 120 people requiring medical assistance or processed without error. hospitalisation, and support to the families of Table 15 provides details of consular support 83 people who died overseas. The number of provided by Austrade in the past five years, notarial acts performed decreased by 12 per including the number of notarial acts performed cent from 14,342 in 2013–14 to 12,558 in and number of passport applications received. 2014–15.

The number of passport applications received increased by 16.5 per cent, from 11,571 in 2013–14 to 13,486 in 2014–15. Austrade provided responsive passport services to Australians with

Part 02 / Report on performance. Outcome 2 – Programme 2.1 131 Table 15: Consular assistance provided by Austrade, 2010–11 to 2014–15

2010–11 2011–12 2012–13 2013–14 2014–15 No. of Australians who received 129,592 90,763 90,874 808(a) 891 consular support from Austrade(a) No. of notarial acts performed by 10,146 11,139 11,639 14,342 12,558 Austrade No. of passport applications received 12,990 12,081 11,258 11,571 13,486 by Austrade

(a) In 2013–14, Austrade realigned its reporting of consular assistance to show the number of instances where significant assistance was provided to Australian citizens, rather than displaying the number of general enquiries. Significant assistance includes assistance provided to citizens arrested or imprisoned overseas or who require medical assistance or hospitalisation, and support provided to families of citizens who die overseas. This methodology is consistent with the approach taken by the Department of Foreign Affairs and Trade, and accounts for the significant change in figures between the 2012–13 and 2013–14 reporting years.

Carole Kelly former Consular Officer, Vancouver

Australian replace a lost passport so that they can travel urgently, set up appointments for visiting Australian officials, or talk to host government and local authorities about coordinating an emergency response to a crisis’, noted Carole. ‘It has been a privilege to have been the “face of Australia” and to be able to help Australians in need’, she added.

Carole recalls with fondness meeting the Australian Prime Minister at the Carole Kelly, former Consular Officer from Commonwealth Heads of Government Austrade’s Vancouver office, retired this Meeting in Canada in 1987; welcoming the year after 34 years of dedicated service to Australian Governor-General to Canada Austrade. She started working for Austrade in 2013; and this year, meeting the Hon in 1981, in the then Trade Commission Andrew Robb AO MP, Minister for Trade and in Vancouver, as Secretary to the Trade Investment, when he was in Vancouver to Commissioner. After also serving as Secretary attend the Vancouver International Wine to the Consul-General, she took up the role of Festival, which was held from 20 February to Passports Officer in 1988. 1 March 2015, and featured Australia as a host Carole said that the consular role was varied, nation. challenging and rewarding. ‘On any given Pictured: Carole Kelly with Austrade’s CEO, Bruce Gosper, day, I may be asked to assist a visitor who at the International Wine Festival in Vancouver, February had been hospitalised or arrested, help an 2015. Photo: Austrade.

132 Australian Trade Commission Annual Report 2014–15 03 PART MANAGEMENT AND ACCOUNTABILITY

Corporate governance 134

Corporate planning 139

Risk management 141

Legislative framework and external scrutiny 143

Management of human resources 145

Financial management and business assurance 161

Managing knowledge and information 165 Management and accountability

Austrade was established by the Australian Agencies hosted four forum meetings during the Trade Commission Act 1985. It is a non- year covering the following topics: corporate Commonwealth entity under ›› Digital transition—where to from here? the Public Governance, Performance and ›› Introduction and implementation of the Accountability Act 2013, and a statutory agency Commonwealth risk management policy— under the Public Service Act 1999. Austrade has joining the dots an executive management governance structure › Governance of the future—have we got it headed by its Chief Executive Officer (CEO), and › right? Can we do it better? What do we need is part of the Foreign Affairs and Trade portfolio. to do differently in the future? ›› Red tape reduction and managing risk. Corporate governance Austrade has benefited from maintaining an Austrade’s corporate governance framework active role in the forum’s organising committee, supports the achievement of the agency’s and its continued participation helps enhance its stated objectives, deliverables and key risk culture, refine its audit practices and improve performance indicators in an ethical, efficient its corporate policy framework. and effective manner, meeting legislative, policy and accountability requirements. Chief Executive Officer The framework provides a mature system Austrade’s CEO is responsible to the Minister for managing risk (internal controls), human for Trade and Investment for Austrade’s and financial resources, and planning and performance. The functions and duties of the assurance processes. CEO are established through the Australian Austrade’s corporate governance framework Trade Commission Act 1985. The Minister may is consistent with the Australian National Audit give the CEO directions with respect to the Office (ANAO) better practice guide titled Public performance of his functions and exercise of sector governance: Strengthening performance powers. No ministerial directions were issued in through good governance, published in 2014–15. June 2014. The CEO is assisted in his role by an Executive Group, an Audit and Risk Committee, an Corporate Governance Forum Ethics Committee and two management In 2014–15, Austrade continued its membership subcommittees (see Figure 27 on page 139). of the Corporate Governance Forum, an Both the Audit and Risk Committee and initiative it developed in 2009. The forum assists the Ethics Committee have independent Australian Government agencies to achieve best chairpersons, and the Audit and Risk Committee practice in governance through the exchange of has an additional independent member. knowledge and ideas.

134 Australian Trade Commission Annual Report 2014–15 03

Austrade’s Executive, pictured with Austrade staff members Stephanie Julienne (third from left) and Deborah Lewis (second from right), who participated in Executive meetings throughout the year. L–R: Laurie Smith, Tim Beresford, Stephanie Julienne, Marcia Kimball, Bruce Gosper, Lynne Ashpole, Deborah Lewis, and Grame Barty. Photo: Austrade.

Austrade’s Executive Grame Barty—Acting Executive Director, International Operations Group43 Austrade’s Executive advises the CEO on key Responsible for Austrade’s offshore network, management issues, strategic priorities, and international issues branch, trade, and corporate, operational and divisional plans, as marketing, online and business practice. well as corporate policy and operational issues. It met 25 times in 2014–15. The members of the Grame has more than 30 years of international Executive are listed below. business and government experience in areas such as innovation commercialisation, Bruce Gosper—Chief Executive Officer marketing, and trade and investment. As a senior Responsible for the management of Austrade executive in Austrade, Grame has influenced and and reports directly to the Minister for Trade implemented government policy in international and Investment. trade, developed and marketed new products, negotiated international multiparty agreements, Bruce has been Austrade’s CEO since and secured numerous foreign direct investment 1 February 2013. From 2009 until his and collaborative research opportunities, appointment to Austrade, Bruce was a Deputy particularly in the information technology, biofuels, Secretary in the Department of Foreign Affairs and water sustainability and management and Trade, where he was the Australian sectors. He was Austrade’s Regional Director, Government’s senior trade policy official, Americas from 2008 to 2011, and recently responsible for all trade negotiations. Bruce has General Manager, Growth and Emerging Markets. worked extensively on the Government’s trade and commercial relationships, both in Australia and overseas, during his more than 30 years of 43 Laurie Smith was in the position of Executive Director, International government service. Operations Group until 20 March 2015. Grame Barty commenced acting in this role on 23 March 2015.

Part 03 / Management and accountability. Corporate governance 135 Tim Beresford—Executive Director, For 14 years, Marcia managed Austrade’s team Tourism, Investment, Education and of human resource professionals across its Programmes Group international network, encompassing attraction Responsible for tourism, investment, and retention, strategy and policy, systems and international education, government reporting, capability and talent. In July 2014, and ministerial, and the Export Market Marcia was appointed Chief Operating Officer. Development Grants scheme. Before joining Austrade, Marcia was the Tim has been an Executive Director with Executive Director, Corporate Development Austrade since October 2011. Prior to joining for the Civil Aviation Safety Authority, and Austrade, he worked as a First Assistant also worked in management roles for more Secretary at the Department of the Prime than a decade within the broader Airservices Minister and Cabinet, where he co-led the Australia. She began her career in education and negotiation and delivery of the National Health professional development, leaving the teaching Reform Agreement with all states and territories. service at a senior level in the late 1980s. Before joining the Australian Public Service, Tim worked for 17 years in the private sector Lynne Ashpole—Head of Strategy, Policy with a number of senior roles in Westpac Coordination, Governance and Media Banking Corporation, as well as 10 years in the Responsible for corporate governance; management consulting sector, including six internal audit; policy coordination; corporate years at McKinsey & Company. planning and strategy; and Austrade’s media unit. From 2003 to 2012, Tim was on the board of Plan Australia International. In February 2013, Before joining Austrade, Lynne was a he joined the board of the Benevolent Society senior adviser to a minister in the Australian and is currently Chair, Research, Policy and Government, having previously worked in Advocacy Committee. similar positions in New South Wales and the Northern Territory. Those positions gave her Marcia Kimball—Chief Operating Officer44 the opportunity to work in a wide variety of Responsible for national and international economic and social policy portfolios. Prior to human resource management; finance; those appointments, she worked in legal and information technology services; legal, policy positions in the Commonwealth Attorney- procurement and fraud; and security, consular General’s Department, the NSW Ministry for and property. Police, and the NSW Cabinet Office, including as the inaugural Director of the NSW Better Regulation Office. She started her career working 44 The role of Chief Operating Officer was created in July 2014 to include oversight of human resources, consular and business in private sector law firms. services, finance, information technology services, and legal, security and procurement. Peter Yuile previously held the position of Executive Director, Tourism, Education and Corporate Operations Group, with responsibility for many of these functions. He took leave from the position in June 2014, and retired from Austrade in in October 2014. Responsibility for the functions of tourism and international education were transferred to the Executive Director, Tourism, Investment, Education and Programmes.

136 Australian Trade Commission Annual Report 2014–15 03

Increasing opportunities for women to At various times throughout the year, other participate in high-level decision-making Austrade staff were also internal Austrade members of the committee. The Executive Throughout the year, the CEO invited two high- Director, Tourism, Investment, Education and potential, Australia-based female staff members Programmes Group and the General Manager, to attend Executive meetings to increase the Established Markets finished their terms on opportunity for women to observe and advise on 31 August 2014, and the Executive Director, high-level decision-making within Austrade (one International Operations Group, retired from his Senior Executive Service employee and one position as an internal member of the committee non-Senior Executive Service employee, to be in March 2015, upon leaving Austrade. The rotated every 12 months). committee met five times during the year. Participating staff members for 2014–15 were Deborah Lewis, General Manager, Tourism; Ethics Committee Cheryl Stanilewicz, Senior Trade Commissioner, The Ethics Committee promotes high standards Washington DC (to December 2014); and of ethical behaviour throughout Austrade, Stephanie Julienne, Acting Manager, Tourism provides clear and consistent guidance on Infrastructure (from January 2015). standards of conduct, and evaluates the effectiveness of Austrade’s policies and Audit and Risk Committee practices in relation to ethical behaviour. The Audit and Risk Committee’s role is to The committee consists of an independent chair, provide independent assurance and advice to Jeff Lamond; Austrade’s Chief Operating Officer the CEO on Austrade’s risk, control, compliance and Chief Human Resources Officer; and a and external accountability responsibilities. The cross-section of Austrade’s senior management committee’s processes are consistent with the from its onshore and offshore offices. The Chief ANAO better practice guide titled Public sector Counsel, Legal, Procurement and Fraud is audit committees: Independent assurance and designated as Chief Ethics Officer and is an advice for accountable authorities, published in ex officio member of the Ethics Committee. March 2015. The committee met three times in 2014–15. At 30 June 2015, the committee consisted of two independent members and one internal Austrade member. The independent members for 2014–15 were David Lawler (chair) and Jennifer Clark. The internal Austrade member was the Assistant General Manager, Marketing and Communications.

Part 03 / Management and accountability. Corporate governance 137 Management subcommittees Austrade’s committees and subcommittees in 2014–15, and their roles, activities and Members of Austrade’s Executive chair participants, are listed in Table 16. Austrade’s subcommittees on workplace relations and executive management structure and reporting security. Those subcommittees support relationships are shown in Figure 27. governance, inform operations, and provide mechanisms for consultation and communication with staff.

Table 16: Austrade’s committees and subcommittees in 2014–15

Committee Role and activities Participants at 30 June 2015 Executive Considers key management issues, CEO (chair); executive directors; Chief (met 25 times in strategic priorities, and corporate, Operating Officer; and Head of Strategy, 2014–15) operational and divisional plans, Policy Coordination, Governance and Media as well as corporate policy and operational issues, and provides advice to the CEO Audit and Risk Considers governance Independent members: David Lawler Committee arrangements and provides (chair) and Jennifer Clark. Internal member: (met five times in independent advice and Assistant General Manager, Marketing and 2014–15) assurance to the CEO on risk Communications management, compliance and external accountability Ethics Committee Promotes high standards of ethical Independent member: Jeff Lamond (chair). (met three times in behaviour throughout Austrade Internal members: Chief Operating Officer; 2014–15) Chief Human Resources Officer; Chief Counsel, Legal, Procurement and Fraud; and a cross-section of senior managers from onshore and offshore Subcommittee Security Advisory Provides advice on the Chief Operating Officer (chair); Assistant Group management of security issues, General Manager, Security, Consular and including policy, planning and Property (Austrade Security Executive); Chief risk management. Also considers Human Resources Officer; General Manager, specific security issues in business Growth and Emerging Markets; Chief units and overseas offices Information Officer; Chief Counsel, Legal, Procurement and Fraud; Agency Security Adviser; and Information Technology Security Adviser Workplace Provides advice and consults Chief Operating Officer (chair), managers Relations with staff and management on and Austrade performance level 1–5 staff Committee workplace relations and change representatives management issues

138 Australian Trade Commission Annual Report 2014–15 03

Figure 27: Austrade’s executive management structure

Parliament

Minister

Audit and Risk Committee

CEO

Ethics Committee

Executive Group

Security Advisory Group Workplace Relations Committee

Corporate planning Under the Australian Trade Commission Act Corporate planning is conducted within the 1985, Austrade’s CEO is required to present framework of Austrade’s strategic operating a corporate plan each year to the Minister for environment, and seeks to ensure that Austrade Trade and Investment.45 provides maximum value to the Government and Australian businesses and institutions, while The corporate plan sets out the key strategies ensuring the highest ethical standards. Austrade will pursue to achieve the outcomes and priorities set by the Australian Government Figure 28 outlines the relationship between in the Portfolio Budget Statements for Austrade’s key planning processes. the relevant year. Austrade’s planning and performance management practices align its activities and resources to deliver those priorities.

45 From 1 July 2015, Austrade’s corporate planning and reporting will also comply with requirements under the Public Governance, Performance and Accountability Act 2013.

Part 03 / Management and accountability. Corporate planning 139 Figure 28: The relationship between Austrade’s key planning processes in 2014–15 Trade Commission Australian Annual Report 2014–15 Report Annual

CORPORATE PLAN AUSTRALIAN TRADE COMMISSION austrade.gov.au

2014–15AUSTRALIAN TRADE COMMISSION

Portfolio Budget Corporate plan: Performance Annual report: provides Statements: provides explains the key management information about information on the strategies that framework: links the Austrade’s performance proposed resources Austrade will pursue key performance in relation to outcomes allocated to Austrade in order to achieve the indicators in Austrade’s and budget measures, in the reporting year to outcomes and priorities Portfolio Budget as part of Austrade’s achieve the outcomes set by the Government. Statements with accountability to and priorities set by more detailed internal the Minister and the the Government. reporting measures. Parliament of Australia.

Performance management framework Employee communications

To monitor overall organisational performance, Austrade’s governance arrangements are Austrade’s performance management framework designed to ensure effective decision-making links the key performance indicators in and communication of corporate governance Austrade’s Portfolio Budget Statements with and organisational priorities. During 2014–15, more detailed internal reporting measures. staff received information on a wide range of corporate issues, including new priorities, The framework ensures Austrade’s activities international business missions, major system are aligned to achieving defined operational changes, corporate policies, work health and objectives, while incorporating measures safety, security issues, enterprise agreement to monitor stakeholder satisfaction, internal negotiations, executive meeting outcomes, governance, and resources and capability. organisational restructures, and the components of the 2014–15 Budget that were relevant Staff performance agreements to Austrade. Staff performance agreements are made on an The methods used to communicate corporate annual basis, covering the period from 1 July information to staff included: to 30 June each year. The agreements are consistent with the market and business plans ›› CEO and corporate messages delivered of the unit in which the individual staff member via email works, as well as with Austrade’s performance ›› tailored messages from executive directors, management framework. For more information general managers, line managers and various on staff performance agreements, see page 156. team meetings

140 Australian Trade Commission Annual Report 2014–15 03

›› a weekly online newsletter, Global News Risks identified in the 2014–15 agency risk ›› presentations onshore from Austrade staff management plan covered strategic risks, through the ‘Stay in Touch’ programme including geopolitical risk; capitalising on market intelligence; transitional processes, such as the ›› Austrade’s global intranet, ‘The Hub’, which Significant Investor and Premium Investor Visa provides a single location for collaboration programmes; and operational and corporate and information-sharing. risks, including security, consular, business Corporate training programmes, including pre- continuity, and ethics and integrity. posting training, induction training and online Austrade’s 2014–15 agency risk management modules, were also used throughout 2014–15 plan was prepared in accordance with the risk to keep staff informed and aware of current management standard ISO 31000:2009. The corporate policies and procedures. plan identifies key risks with the potential to Each year, all Austrade staff complete a affect Austrade’s ability to achieve the objectives mandatory Austrade corporate policy refresher and priorities set out in its corporate plan. online module. Key policy focus areas covered in the module in 2014–15 included work health and Internal controls safety, anti-bribery, fraud prevention, corporate The Audit and Risk Committee and the governance, procurement, security, finance and internal auditor have noted the mature nature ethical business behaviour. of Austrade’s internal control framework. The main features of the internal control Risk management framework include: ›› policies and procedures, including The CEO meets the risk management Chief Executive’s Instructions, which requirements of section 16 of the Public support compliance with legislative and Governance, Performance and Accountability administrative requirements Act 2013 by having Austrade managers develop mitigation strategies and actions for identified ›› a positive compliance and management agency risks in the agency risk management environment supported by an effective plan, and reporting progress against these to the schedule of delegations Audit and Risk Committee and the Executive ›› an effective internal audit function that seeks on a quarterly basis. This assists in providing to appropriately balance performance and assurance to the CEO that risks are being compliance audits managed and monitored. ›› an effective risk management framework, Throughout 2014–15, Austrade continued including fraud control, risk management to manage its exposure to risk and mitigate plans, security and business continuity adverse consequences through the management and disaster recovery implementation of risk management principles ›› compliance with the Australian Public Service and practices, as outlined in the Chief Values and Code of Conduct and the Public Executive’s Instruction on risk management and Governance, Performance and Accountability the corporate governance framework. Act 2013

Part 03 / Management and accountability. Risk management 141 ›› monitoring controls through effective planning Anti-bribery at the corporate, operational and business unit Austrade continues to take steps to ensure levels, reviews of business units and ongoing that its practices comply with the anti-bribery budget management provisions in section 70 of the Australian ›› accountability mechanisms, including Criminal Code, as well as Australian and reports, reviews and individual performance international law and Austrade policy. Initiatives management arrangements. include mandatory training for all staff on ethical standards and legal obligations. Staff receive Fraud control this training on commencement with Austrade Austrade maintains fraud prevention, detection, and before overseas postings, and in the annual investigation and reporting procedures and policy refresher course. processes that are compliant with section 10 Austrade has collaborated with other Australian of the Public Governance, Performance and Government agencies on the development of Accountability Rule 2014. anti-bribery material for business and industry A fraud control plan, effective from 2013 to groups operating nationally and internationally. 2015, has been endorsed by the Audit and Risk Austrade is also working with business groups, Committee and is consistent with the Australian chambers of commerce and other organisations standards applying at the time of endorsement on anti-bribery outreach programmes and (AS/NZS ISO 31000:2009 Risk Management supports the work of international organisations and AS 8001:2003 Fraud Corruption and like the Organisation for Economic Co-operation Control). A principles-based ethics and integrity and Development (OECD) and Transparency approach underpins the strategies of awareness, International. Austrade continues to remind prevention, identification and reporting, with the Australian businesses operating in international aim of continuous improvement. markets of their ethical and legal obligations under Australian law. A 2014 ANAO cross-agency audit of fraud control and management arrangements A delegation of Australian Government agencies, identified that Austrade needed to enhance including Austrade, appeared before the OECD consistency with the ANAO better practice guide in December 2014. Austrade was responding titled Fraud control in Australian Government to a recommendation in the OECD’s Working entities, published in March 2011. Following Party on Bribery Phase III report that it take the audit, Austrade has been working towards ‘concrete steps’ to warn business clients of strengthening its compliance and alignment the risk of using local agents. Austrade also with better practice in fraud control and provided evidence of its awareness raising—on management by improving mechanisms in its the operation of the law and means of mitigating fraud risk framework, including developing a the risk of bribery—among staff and through its centralised fraud management database and a outreach programme to business clients. comprehensive fraud investigation manual, and Following Austrade’s appearance, the OECD also developing further fraud risk awareness published its findings in April 2015. It found training for staff. Austrade to have fully implemented the OECD

142 Australian Trade Commission Annual Report 2014–15 03 recommendations regarding foreign agents. Legislative framework and It also found an ongoing obligation to raise external scrutiny awareness of the operation of anti-bribery laws and actions that should be taken to mitigate that This section outlines the legislative framework risk among Austrade’s business clients. Further and external scrutiny mechanisms under which recommendations were made by the OECD Austrade operates. regarding publishing materials to distinguish the use of facilitation payments from bribes. This Legislation will continue to be done through Austrade’s Austrade operates under the outreach programme. following legislation: ›› Australian Trade Commission Act 1985— Internal audit defines the functions, duties and powers of The activities of Austrade’s internal auditor are the CEO and the Commission defined by a risk-based annual internal audit plan ›› Export Market Development Grants Act endorsed by the Audit and Risk Committee, and 1997—provides for the Export Market approved by the CEO. All significant Austrade Development Grants scheme, the activities are considered to be within the ambit Government’s principal export market of internal audit. The internal audit plan seeks assistance programme, which is administered to coordinate internal audit activity with other by Austrade assurance activities and mechanisms, including ›› Public Governance, Performance and external audits and ANAO better practice guides. Accountability Act 2013—provides the During the year, 19 compliance and framework for the proper management of performance-based audits and reviews were public money and property. During the year, undertaken by Austrade’s internal auditor, Austrade implemented new processes to PricewaterhouseCoopers, which observed that transition to the Act, which replaced the Austrade has a strong system of internal controls Financial Management and Accountability and operates within a mature control framework, Act 1997 on 1 July 2014 and noted that no serious control breakdown ›› Financial Management and Accountability had been identified. Act 1997—provided the transitional provisions until 30 June 2015 ›› Public Service Act 1999—governs the establishment and operation of, and employment in, the Australian Public Service.

Part 03 / Management and accountability. Legislative framework and external scrutiny 143 Independent audits ›› Delivery of Australia’s consular services (Audit Report no. 21, 2014–15). Austrade was the subject of two reports tabled by the Auditor-General in Parliament during Austrade’s management also reviewed three 2014–15: better practice guides: ›› Fraud control arrangements (Audit Report ›› Public sector governance: Strengthening no. 3, 2014–15) performance through good governance ›› Administration of the Export Market ›› Public sector audit committees: Independent Development Grants scheme (Audit Report assurance and advice for chief executives no. 15, 2014–15). and boards

ANAO better practice guidelines encourage ›› Public sector financial statements: High- agencies to consider relevant ANAO reports quality reporting through good governance tabled for other agencies, with the aim of and processes. improving public administration across Australian Austrade also worked with the Audit and Risk Government agencies. During the reporting Committee on ways to improve Austrade’s period, Austrade considered nine ANAO internal controls framework. reports tabled by the Auditor-General that were assessed as relevant to Austrade’s operations: Judicial decisions, decisions by ›› Cyber attacks: Securing agencies’ ICT administrative tribunals and the Information systems (Audit Report no. 50, 2013–14) Commissioner, and reviews by outside bodies

›› The management of physical security (Audit During the reporting period, there were no Report no. 49, 2013–14) judicial decisions or reviews by outside bodies ›› Confidentiality in government contracts: that had a significant impact on the operations Senate Order for department and agency of Austrade. Austrade’s input to parliamentary contracts (calendar year 2012 compliance) inquiries and briefings is discussed on page 107. (Audit Report no. 4, 2013–14) Details of appeals to the Administrative ›› Establishment and use of multi-use lists Appeals Tribunal (AAT) under the Export Market (Audit Report no. 54, 2013–14) Development Grants Act 1997 are shown on ›› Indigenous employment in Australian page 125. Government entities (Audit Report no. 33, The Information Commissioner finalised one 2013–14) review of a freedom of information decision ›› Confidentiality in government contracts: made by Austrade. This decision is currently on Senate Order for departmental and agency appeal at the AAT. contracts (calendar year 2013 compliance) (Audit Report no. 1, 2014–15) The Commonwealth Ombudsman has advised Austrade that it is investigating a complaint ›› Business continuity management (Audit about the handling of disclosures made under Report no. 6, 2014–15) the Public Interest Disclosure Act 2013. ›› Implementation of audit recommendations That investigation was ongoing during the (Audit Report no. 8, 2014–15) reporting period.

144 Australian Trade Commission Annual Report 2014–15 03

Privacy frameworks, strategies, tools and advice to support Austrade’s business areas to achieve Austrade received no complaints under the their objectives. Privacy Act 1988 during 2014–15. Training on the Privacy Act is provided annually to all staff as Key areas of focus for Austrade in managing and part of Austrade’s annual policy refresher course. developing its workforce during 2014–15 are outlined below. Freedom of information Employee engagement Agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish The 2014 Australian Public Service (APS) information to the public as part of the Information employee census sought employee views on a Publication Scheme. This requirement is in Part II range of workplace and employment matters, of the FOI Act, which has replaced the formal and allowed Austrade to compare its census requirement to publish a section 8 statement in results with similar APS agencies, and also to an annual report. Austrade meets its obligations make comparisons with overall APS averages under the FOI Act by displaying on its website, and 2013 agency data. In the 2014 census, www.austrade.gov.au, a plan showing what Austrade achieved a 67 per cent response rate, information is published in accordance covering both Australia-based and overseas- with the requirements of the Information engaged employees, which was in line with its Publication Scheme. 2013 participation rate.

Austrade’s 2014 results followed similarly Management of human strong results in 2013, with Austrade’s results consistently higher than the outcomes for resources comparative specialist APS agencies46 and Austrade’s human resources strategy draws the overall APS benchmark results. Austrade on the agency’s strategic objectives and achieved improvement across three of business context to identify key workforce the four pillars of employee engagement capability needs and directions. The (team engagement, supervisor engagement strategy addresses organisational capability and agency engagement), with trend lines and capacity challenges, and provides a significantly above the total for APS and framework for compliance with public sector specialist agencies. governance requirements and alignment with leading practice. Employment framework

Austrade’s Executive and managers are Austrade’s employment framework provides accountable for workforce planning, capability flexible and responsive people management development and performance management policies, practices and conditions. Austrade for their respective business areas and for offers a range of employment instruments that the effectiveness of workforce decisions. Human resource managers onshore and 46 See Attachment B of the 2013–14 State of the service report, offshore act as business partners, providing p. 15, for details on the cluster of other specialist agencies for the purposes of comparison.

Part 03 / Management and accountability. Management of human resources 145 provide competitive terms and conditions to Individual flexibility arrangements support the diverse needs of its global workforce Austrade’s enterprise agreement allows for and drive a positive working environment. individual flexibility arrangements that vary the Austrade is committed to complying with terms of the agreement in relation to when work government policy and meeting its legislative is performed, allowances, remuneration and obligations within Australia and in the countries leave. At 30 June 2015, 50 non-SES employees in which it engages local employees. Its had individual flexibility arrangements in place overseas terms and conditions of employment (see Table 17). are reviewed regularly to ensure compliance with local labour laws and, where feasible, to Workplace Relations Committee align with APS employment conditions. Austrade’s Workplace Relations Committee, The Austrade Enterprise Agreement 2012–2014 which represents APL 1–5 employees, met twice has been in place since July 2012 and covers during the year to facilitate consultation between all Australia-based non-Senior Executive management and employee representatives Service (SES) employees. While the agreement on a range of workplace matters, including nominally expired on 30 June 2014, it will Austrade’s financial position and framework, continue to govern the terms and conditions of and the process for bargaining a replacement all Australia-based Austrade performance level enterprise agreement. (APL) 1–5 employees until a new agreement is Bargaining for the incoming enterprise in place. agreement is likely to include discussion of Austrade undertook internal consultation with a number of potential productivity gains over key stakeholders to commence negotiations for the life of the agreement. Details of these a replacement agreement throughout the year, productivity gains will be made available when with bargaining commencing in April 2015. At the agreement is finalised. 30 June 2015, bargaining was still in progress. SES remuneration Austrade’s SES and overseas-engaged employees are employed under individual Austrade’s CEO determines SES remuneration employment contracts. At 30 June 2015, and conditions of employment in accordance 60 substantive SES employees had their terms with section 24(1) of the Public Service Act and conditions of employment contained in 1999 and the APS Executive Remuneration common law contracts, and 489 overseas- Management Policy. engaged employees were engaged on individual contracts under the terms and conditions of employment for the country in which they were employed (see Table 17).

146 Australian Trade Commission Annual Report 2014–15 03

Table 17: Austrade employees covered by workplace, collective, common law, and individual flexibility agreements at 30 June 2015

Collective Common law Section 24(1) Individual flexibility agreement agreement determination(a) arrangement

Salary Salary Salary Salary Classification range ($) No. range ($) No. range ($) No. range ($) No. Total

Cadet n.a. 0 n.a. 0 n.a. 0 n.a. 0 0 APS 1–4 47,310– 36 n.a. 0 n.a. 0 —(b) 2 38 APL 1 67,651 APS 5–6 70,357– 117 n.a. 0 n.a. 0 —(b) 3 120 APL 2 86,215 Exec. Level 1 91,818– 157 n.a. 0 n.a. 0 103,765– 11 168 APL 3 103,284 123,000 Exec. Level 2 107,414– 128 n.a. 0 n.a. 0 129,777– 34 162 APL 4–5 145,388 157,255 SES —(b) 5 155,035– 60 n.a. 0 —(b) 2 67 288,249

Total 443 60 0 52 555

(a) Determination made under section 24(1) of the Public Service Act 1999. (b) Where there is a possibility that payments to individuals may be identified (that is, five or fewer employees at a classification level), the salary range is not shown. Note: Excludes CEO. Includes six substantive non-SES employees who are acting SES.

Austrade’s SES remuneration includes a Australia-based APL 1–5 employees did taxable allowance for onshore SES, in lieu of not receive an increase on 1 July 2014 due an executive vehicle scheme. SES contracts to the continuation of Austrade’s current provide for an annual review, with increases enterprise agreement. With this and other generally paid in September each year. However, budget considerations in mind, including an there is no guarantee that an increase will occur APS directive that SES adjustments be in line as consideration is also given to comparative with the Australian Government Public Sector APS data and relevant economic and market Workplace Bargaining Policy, the CEO decided data, as well as the approach taken to to defer determination of any increase for SES APL 1–5 employees. employees until later in 2015.

Part 03 / Management and accountability. Management of human resources 147 Workforce planning and demographics specifically in relation to the number of full- time and part-time ongoing and non-ongoing Austrade actively manages its workforce to meet employees (Table 18), the number of employees its objectives within its funding parameters. who identify as Indigenous (Table 19), the total Austrade’s workforce planning has a mid- to number of Austrade employees by category of long-term focus, while still being responsive to employment and gender (Table 20), employees operational resource planning scenarios. by classification, location and gender (Table 21), At 30 June 2015, Austrade employed 1,045 staff, employees by location and gender (Table 22), 69 per cent of whom were employed in client- and employees by group or division, both in focused operations in Australia and overseas. Australia and offshore (Table 23). The gender balance for 2014–15 was 56 per cent Tables 24, 25 and 26 provide a breakdown of female and 44 per cent male, and staff turnover Austrade’s SES employees by classification, was 7.2 per cent compared with 13.5 per cent in gender and location, as well as SES gains and 2013–14. losses for the year. The following tables provide a snapshot of Austrade’s workforce at 30 June 2015,

Table 18: Ongoing and non-ongoing employees (excluding overseas-engaged employees), full-time and part-time, at 30 June 2015

Non-ongoing employees Ongoing employees Total Total Full-time Part-time Full-time Part-time 30 June 2015 30 June 2014 42 12 445 57 556 546

Note: Includes staff on leave without pay and long-term leave. Includes CEO.

Table 19: Ongoing and non-ongoing employees (excluding overseas-engaged employees), full-time and part-time, who identify as Indigenous at 30 June 2015

Non-ongoing employees Ongoing employees Total Total Full-time Part-time Full-time Part-time 30 June 2015 30 June 2014 0 0 3 0 3 3

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Table 20: Employees by category of employment and gender at 30 June 2015

Category Female Male Total 30 June 2015 Total 30 June 2014 Ongoing 261 241 502 520 Non-ongoing 36 18 54 26 Overseas-engaged employees 292 197 489 486 Total 589 456 1,045 1,032

Note: Includes staff on leave without pay and long-term leave. Includes CEO. Overseas-engaged employee figures include temporary staff.

Table 21: Employees by classification, gender and location at 30 June 2015

Australia Australia Overseas Overseas Total staff Total staff Category female male female male 30 June 2015 30 June 2014 AOPL 1 0 0 2 24 26 26 AOPL 2 0 0 52 16 68 59 AOPL 3 0 0 133 47 180 180 AOPL 4 0 0 97 96 193 197 AOPL 5 0 0 8 14 22 24 APL 1 31 7 0 0 38 31 APL 2 82 38 0 0 120 134 APL 3 87 74 3 4 168 159 APL 4 40 50 10 18 118 110 APL 5 17 14 4 9 44 50 SES 1 8 21 8 9 46 41 SES 2 5 6 2 5 18 17 SES 3 0 3 0 0 3 3 CEO 0 1 0 0 1 1 Total 270 214 319 242 1,045 1,032

AOPL = Austrade overseas performance level Note: Includes temporary staff, and staff on leave without pay and long-term leave.

Part 03 / Management and accountability. Management of human resources 149 Table 22: Employees by location and gender at 30 June 2015

Australia- Australia- Australia- Total Total Market/ based based based OEE OEE OEE 30 June 30 June location female male total female male total 2015 2014

Market

East Asian 11 17 28 130 51 181 209 213 Growth Markets

Established 11 12 23 110 61 171 194 188 Markets

Growth and 5 16 21 52 85 137 158 157 Emerging Markets

Subtotal 27 45 72 292 197 489 561 558

Location

ACT 141 100 241 0 0 0 241 248 NSW 86 72 158 0 0 0 158 149 NT 1 0 1 0 0 0 1 1 QLD 7 10 17 0 0 0 17 15 SA 4 2 6 0 0 0 6 8 TAS 0 1 1 0 0 0 1 1 VIC 21 26 47 0 0 0 47 41 WA 10 3 13 0 0 0 13 11 Subtotal 270 214 484 0 0 0 484 474 Total 297 259 556 292 197 489 1,045 1,032

OEE = overseas-engaged employee

Note: Includes CEO, temporary staff, and staff on leave without pay and long-term leave. Excludes attached agency staff, trade consultants, contractors and TradeStart employees. At 30 June 2015, there were 88 attached agency staff within Austrade. Enabler staff are included in the market in which they are physically located. For example, enabler staff from the Frankfurt office are included in Established Markets.

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Table 23: Employees by group or division at 30 June 2015

Overseas- Total staff Total staff Australia- engaged 30 June 30 June Group/division based employees 2015 2014 Australian Operations 0 0 0 139 Tourism, Education and Corporate 0 0 0 252 Services Human Resources 0 0 0 43 Established Markets 23 158 181 210 East Asian Growth Markets 28 176 204 178 Growth and Emerging Markets 20 133 153 153 International Operations Australia 139 0 139 15 Tourism, Investment, Education and 163 0 163 0 Programmes Corporate Services Group 137 22 159 0 Office of the CEO 17 0 17 19 Inoperative 29 0 29 23 Total 556 489 1,045 1,032

Note: Includes temporary staff, and staff on leave without pay and long-term leave. Excludes attached agency staff, trade consultants, contractors and TradesStart employees. International staff with a corporate focus are counted in their corporate division. Due to the restructure of Austrade’s onshore operations during 2014–15, figures are not comparable to 2013–14.

Table 24: Senior Executive Service by classification and gender at 30 June 2015

Category Female Male Total 30 June 2015 Total 30 June 2014 SES 1 16 30 46 41 SES 2 7 11 18 17 SES 3 0 3 3 3 Total 23 44 67 61

Note: Includes staff on leave without pay and long-term leave. Includes staff who are acting SES.

Part 03 / Management and accountability. Management of human resources 151 Table 25: Senior Executive Service by classification and location at 30 June 2015

Category Australia Overseas Total 30 June 2015 Total 30 June 2014 SES 1 29 17 46 41 SES 2 11 7 18 17 SES 3 3 0 3 3 Total 43 24 67 61

Note: Includes staff on leave without pay and long-term leave. Includes staff who are acting SES.

Table 26: Senior Executive Service gains and losses during 2014–15

2014–15 2013–14 Gains 15 11 Losses 9 9

Recruitment Capability development

Austrade’s recruitment activity during 2014–15 Austrade’s capability development strategy was guided by APS-wide policy parameters and supports its business priorities, with guidelines, including the APS interim recruitment development initiatives linked to corporate arrangements and APS work value review capability frameworks. Talent is identified, requirements. Austrade focused on ensuring managed and developed, with a talent all staffing action was critical to agency service pipeline established for critical onshore and delivery requirements, and that roles were offshore positions to maximise organisational scoped to ensure optimal contribution at level. performance and to minimise succession risk.

Managers and employees have joint RecruitAbility responsibility for capability and career As part of its commitment to support the development, and have access to core skills employment and career development of people and leadership development initiatives delivered with a disability, Austrade implemented the APS through a blend of learning options. RecruitAbility scheme in April 2015. The scheme Throughout the year, Austrade staff enhances Austrade’s recruitment process, participated in the following learning and enabling applicants with a disability to progress development programmes: to a further stage in the recruitment process, as › 108 new staff attended Austrade’s long as they have opted into the scheme and › induction programme meet the minimum requirements for the position. This provides candidates with a disability with ›› 10 staff participated in a pre-posting workshop more opportunity to demonstrate their skills and ›› 10 staff participated in the ‘Return to Australia’ experience for a role. programme for staff returning from posting

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›› 22 staff participated in women’s postings, and provide a re-entry programme to mentoring programmes employees returning to Australia following an ›› 37 staff participated in inward investment offshore posting. skills workshops ›› 989 staff completed a compulsory annual Trade Commissioner policy refresher e-learning course. Development Programme The Trade Commissioner Development In 2014–15, Austrade continued to collaborate Programme, now in its third year, continued to with the Australian Public Service Commission, provide an important pipeline for Austrade’s through the memorandum of understanding trade commissioner roles. The programme on the Strategic Centre for Leadership, includes a three-month onshore component Learning and Development, to create APS-wide followed by a two-year offshore placement, development initiatives. On behalf of the APS, giving participants the opportunity to gain the centre: hands-on experience and to develop the › provides contemporary research and thinking › strategic, leadership, communication and on leadership, learning and development tradecraft skills required to be a high-performing ›› delivers an annual whole-of-APS leadership trade commissioner. and core skills strategy There were six participants selected for the 2015 › designs, develops and delivers APS talent and › intake. Participants commenced their onshore leadership programmes placements in April 2015, with two-year offshore ›› designs, develops and delivers APS core and placements to commence from July 2015 at management skills programmes Austrade offices in Beijing, Kuala Lumpur, Manila, ›› develops and delivers accredited learning and New Delhi, Osaka and Shanghai. development programmes ›› delivers learning and development events. Winning Investment for Australia course The Winning Investment for Australia course, Core programmes which has been running since 1998, is designed Austrade recognises that the vast majority to build the knowledge, skills and capability of learning occurs on the job, so capability of staff from federal and state and territory development is provided through a blend of agencies with responsibility for investment learning options to cater for learning styles, promotion, attraction and facilitation. geography and budget, including on-the-job Developed and delivered jointly by Austrade and training, coaching, mentoring, and online, internal an external investment practitioner, the course and external courses. also helps to develop the professional networks Austrade’s core programmes for 2014–15 necessary to attract foreign direct investment to were designed to support employees with Australia under the Commonwealth, states and career transition, provide a comprehensive territories partnership model. induction pathway for all new employees, The course was held in Adelaide in November prepare Australia-based employees for offshore 2014 and Melbourne in March 2015, with a

Part 03 / Management and accountability. Management of human resources 153 modified version delivered in Darwin in May Table 27: Foreign language capabilities at 2015. Approximately 100 participants attended Austrade, priority languages, at 30 June 2015 in total, including employees from Austrade, the Department of Foreign Affairs and Trade, Total number of and state and territory governments, as well Language speakers as ministerial staff. A Winning Investment for Arabic 10 Australia masterclass was also delivered in Bahasa 20 Sydney in May 2015 for Austrade’s senior Indonesian investment managers and specialists. Cantonese 32 Hindi 20 Building cross-cultural competency and Japanese 56 language capabilities Mandarin 91 Austrade continued its investment in developing Spanish 55 cross-cultural competency and language capabilities in its people. A range of measures Total 284 have been put in place to enhance staff capabilities and improve their awareness Inclusive Leadership Programme and knowledge of the issues of working and In 2014–15, Austrade sourced a new globally managing across cultures, including cross- researched, multimedia-based educational cultural workshops and access to a suite of programme designed to help leaders with the cross-cultural resources and online tools. practical ‘how to’ associated with diversity and Austrade’s language policy encourages, inclusion. The programme, called Courage: rewards and supports staff in the maintenance Inclusive Leadership in Action, will be delivered of languages important to Austrade’s business in kit form comprising audio, video (CDs, requirements. Austrade’s priority languages are DVDs and USB) and a workbook guide. It will Arabic, Bahasa Indonesian, Cantonese, Hindi, be undertaken over a 10-week period, with Japanese, Mandarin and Spanish. Austrade’s participants interacting via videoconference, capabilities in these priority languages are email and working groups. The first programme shown in Table 27. is expected to be delivered to participants early in 2015–16.

1,045 69% 489 284

staff employed by employed in client- overseas-engaged speakers of priority Austrade focused operations employees foreign languages

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Austrade’s scholarship programme

The following The programme helps to build knowledge scholarships were of contemporary Asian societies and awarded during business culture and enhances recipients’ the year as part cultural intelligence skills to help them of Austrade’s more effectively manage the complexity of scholarship Australia–Asia relations. programme: ›› Austrade Craig Senger Scholarship—This ›› Beryl Wilson Austrade Scholarship for annual scholarship was established Women in International Business—This jointly with Monash University in memory scholarship was established in November of the late Craig Senger, former Trade 2013, in recognition of Beryl Wilson, who Commissioner in Jakarta. This year, the was appointed in 1963 as Australia’s first scholarship was awarded to Zoe Van Gulick. female trade commissioner. The scholarship Zoe will begin an internship with Austrade in is awarded to a female student enrolled full- its Melbourne office in late July 2015. time in postgraduate international business Last year’s recipient of the Austrade Craig studies. The 2015 recipient, Fei Li from Senger Scholarship, Melissa Paciepnik, Melbourne, was announced by the Hon completed the first phase of a disaster Andrew Robb AO MP, Minister for Trade and management scoping project throughout Investment, in February 2015. For further the year, with the support of Austrade’s information, see page 47. urban sustainability team leader. The first ›› Overseas-Engaged Employees’ phase of the project delivered a database Scholarships—Introduced in 2013, these of more than 80 Australian companies in scholarships provide opportunities for staff the natural disaster management field, as to undertake development programmes well as more than a dozen case studies of at recognised educational institutions to international expertise. The database has enhance their skills and capabilities in since been used by Austrade to assist with international trade, leadership and strategy. organising a high-level visit programme Eight overseas-engaged employees from to the Philippines in April 2015 to support Jakarta, Milan, New Delhi, Taipei, Sao the rebuild, recovery and future disaster Paulo, Mumbai, Shanghai and New York mitigation efforts following Typhoon Haiyan received scholarships in 2014–15, and are in November 2013. The second stage undertaking further study in areas such as of the project is underway and involves leadership, management and strategy. the development of an online portal of ›› Asialink Leaders Programme scholarships— Australian capability.

Austrade continued its involvement in the Pictured: Melissa Paciepnik, the 2013–14 recipient of the Asialink Leaders Programme, providing one Austrade Craig Senger Scholarship, with Leigh Wilmott from Australia-based employee with a scholarship Austrade’s Infrastructure Trade Team. Photo: Austrade. to participate in the 2015 programme.

Part 03 / Management and accountability. Management of human resources 155 Short-term overseas assignments Employee recognition

Short-term overseas assignments in Australian Austrade continues to value high performance, and overseas offices meet operational commitment and excellence at the team requirements while also providing both onshore and individual level from its employees in and offshore staff with significant development Australia and offshore, and formally recognises opportunities. A typical short-term overseas strong performance through its Global assignment is between 10 to 12 weeks in Austrade Staff Awards and the Australia Day duration. In 2014–15, 41 staff participated in Achievement Medallions. short-term overseas assignments, with six of those assigned to Asian offices, including Manila, Global Austrade Staff Awards Shanghai, Hanoi and Tokyo. The Global Austrade Staff Awards recognise outstanding performance by individuals and Managing performance teams in four categories: Austrade’s performance management ›› promoting a team approach and spirit through framework aligns individual objectives with the team’s actions and accomplishments Austrade’s strategic objectives. Managers ›› delivering value to stakeholders and staff are required to set objectives and › exemplary leadership performance expectations for the year ahead, › and meet regularly to review progress and ›› working in the national interest. discuss development requirements. At year In 2014–15, there were five individual and five end, performance is formally assessed and team recipients. These were: the level of performance is acknowledged ›› Heath Baker, Sydney and recognised. Where poor performance is identified, performance plans are further ›› Stephanie Julienne, Canberra developed to work on improving performance so ›› Katsue Kagami, Tokyo that it meets the required standards. ›› Imran Saeed, Lahore Austrade’s performance management ›› Lily Wu, Shanghai process encourages development and builds ›› Data Centre Relocation Project Team organisational and individual capability. It also ›› Japan Oyster Project Team helps to ensure that workplace behaviours of ›› Regional Research and Insights Team both managers and staff are consistent with APS values and employment principles. ›› Sustainable Fisheries Management Team ›› Sydney Reception Team. Austrade no longer pays performance bonuses to its employees. As such, there were no performance-related payments to report for 2014–15.

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Australia Day Achievement Medallions placement. Austrade provided work experience to a programme participant in its Tourism In 2014–15, Austrade continued to participate Division and Human Resources Branch in its in the APS-wide Australia Day Achievement Canberra office. Medallion programme. The programme acknowledges the achievements of public Prior to the commencement of this placement, servants, either on special projects that have Disability ACT delivered a Disability Training made a significant contribution to the nation, Awareness workshop to Austrade Canberra or through outstanding performance in their staff, focusing on strategies to assist them core duties. In January 2015, Australia Day in communicating with people who have a Achievement Medallions were awarded to cognitive impairment. The workshop was well 10 Austrade employees: attended and provided staff with an enhanced ›› Josie Abdullah, Bandar Seri Begawan awareness and understanding of working with people with a disability. ›› Kylie Bell, Mumbai ›› Stella Cai, Shanghai Austrade’s participation in this programme aims to raise awareness of the advantages of working ›› Kathleen Devereaux, London in a diverse workforce. Austrade has also › Spiro Kavadias, Canberra › developed a diversity portal that is accessible ›› Kazuto Kimura, Tokyo by all employees and provides links to a broad ›› David Ritson, Canberra range of resources on disability. ›› Kerry Rooney, Canberra Disability reporting in annual reports ›› Partha Sen, Kolkata ›› Christopher Soh, Singapore. Since 1994, Australian Government departments and agencies have reported on their Diversity and inclusion performance as policy adviser, purchaser, employer, regulator and provider under the Austrade is committed to ensuring that the Commonwealth Disability Strategy. workplace is free from discrimination and actively supports diversity and inclusion through In 2007–08, reporting on the employer role a number of key initiatives focused on disability was transferred to the Australian Public Service employment and Indigenous programmes, as Commission’s State of the Service report and well as initiatives to encourage gender equality. the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010–11, departments and agencies were no longer Disability employment required to report on these functions. To support its diversity strategy, Austrade participated in the Transition to Work disability employment programme, facilitated through the House With No Steps. The programme supports young people with a disability in the transition to adult life through a 12-week work experience

Part 03 / Management and accountability. Management of human resources 157 The Commonwealth Disability Strategy has been Austrade’s Indigenous portal and the continuous overtaken by the National Disability Strategy improvement of the portal’s resources have 2010–2020, which sets out a 10-year national made a significant difference to employees’ policy framework to improve the lives of people understanding and appreciation of a diverse with disability, promote participation and create workforce. The links to Indigenous resources a more inclusive society. A high-level two-yearly have also helped raise awareness of Indigenous report will track progress against each of the cultures, and reinforce the specific commitments six outcome areas of the strategy and present a that Austrade continues to make in the areas picture of how people with disability are faring. of employment, cultural awareness and The first of these reports can be found at capability building. www.dss.gov.au. To further support its commitment to reconciliation and Indigenous employment, Reconciliation Action Plan and Austrade has in place an Indigenous Working Indigenous programmes Group and has nominated Marcia Kimball, Austrade recognises the importance of working Austrade’s Chief Operating Officer, as its towards achieving recognition, respect and Indigenous Champion. The working group works change for Aboriginal and Torres Strait Islander with the Indigenous Champion to represent peoples. Its Reconciliation Action Plan, now the interests of Indigenous staff, communicate in its second year, provides a platform for the benefits of a diverse workplace, promote Austrade to demonstrate its commitment to network activities and initiatives, and provide raising awareness and applying the principles of input to Austrade’s policies, strategies, action reconciliation in the workplace. plans and programmes. Since 2012, Austrade has recruited and retained three Indigenous employees through the Indigenous Australian Government Development Programme. The programme is well established and was awarded the APS Diversity Council Award for Indigenous Employment in 2014. Austrade uses the programme as its primary source of Indigenous employment; participants are provided with both professional and personal development, strengthening their capability to undertake a career within the APS.

In addition to its participation in this programme, Austrade also engaged a university cadet under the Indigenous Cadetship Support L–R: Vickie Gouvoussis, Austrade, with Emma Johnston, Naomi Smith and Aubrey Ribbons, Indigenous cadets Programme throughout the year. Austrade from the Indigenous Australian Government Development provided a placement to Indigenous student, Programme. Emma is pictured after receiving her Diploma of Bryce Sentance, who worked in a part-time Government in Project Management in Canberra, December capacity while continuing his university study 2014. Photo: Department of Education. (see page 159).

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Bryce Sentance Indigenous Cadetship Support Programme, Sydney

Bryce Sentance understanding of Austrade’s role within the joined Austrade in APS and the broader Australian business 2014 through the community. He has been engaged with Indigenous Cadetship Austrade while studying for a Bachelor of Support Programme, Global Studies at the University of Technology, administered by Sydney. the Department of Through this exposure, Bryce has Employment. The strengthened his interpersonal skills and programme enables Aboriginal and Torres expanded on the skills gained in his previous Strait Islander university students to gain the employment within the aviation sector. ‘This professional qualifications and experience internship has given me the opportunity to use needed for a range of jobs in the private, the knowledge I’m gaining from university and public and community sectors. Austrade was apply it to practical business situations. the first government agency to take a cadet I have enjoyed every moment, including my under the programme. current short-term placement with Austrade Bryce has had the opportunity to work Direct’, he said.

at Austrade within the CEO’s office, and Pictured: Bryce Sentance during his presentation to in the Advanced Manufacturing Trade conclude his cadetship. Photo: Austrade. Team, enabling him to develop an in-depth

United Nations Women’s Austrade’s ongoing commitment to an equal and Empowerment Principles diverse workplace. Public support of the United Nations principles will further help to raise the In March 2015, Austrade was the first Australian profile of women within Australia’s international Government agency to publicly endorse business community. the United Nations Women’s Empowerment Principles. The principles offer guidance on how to encourage gender equality in business and Research paper on women in Austrade the community. Austrade joined 21 Australian Research undertaken by Austrade during businesses and more than 800 businesses April and June 2014 led to a paper titled ‘How worldwide that have now endorsed women in Austrade experience the organisation’, the principles. which recommended a series of actions that have now been adopted by Austrade. These Austrade has undertaken a number of initiatives include providing developmental support to to improve the representation of women in its female employees and managers, providing senior management team and to encourage more targeted development opportunities, and diversity and inclusion in its global workforce. increasing career support and opportunities for Endorsing these principles underscores

Part 03 / Management and accountability. Management of human resources 159 women in the organisation. Austrade’s Executive Other wellbeing and support programmes plays a lead role in communicating Austrade’s Austrade participates in Mental Health Month, commitment to women in management and in a national event which occurs in October its gender equity programmes. each year, with the aim of raising community awareness and understanding of mental illness, Work environment and workplace support encouraging the reduction of stigma and Austrade continued to promote a strong safety discrimination against people living with mental culture throughout the organisation in 2014–15, illness, and promoting positive mental health and had systems in place to meet Australian and wellbeing. standards and ensure compliance with the In October 2014, Austrade engaged the Black requirements of the Work Health and Safety Dog Institute to deliver face-to-face workshops Act 2011. In accordance with Schedule 2, Part 4 with staff in Australian offices. The sessions, titled of the Act, details of Austrade’s work health ‘Mental health in the workplace is everybody’s and safety initiatives and activities, outcomes, business’, were delivered by clinicians with statistics and investigations, where relevant, are practical experience and qualifications in mental reported in Appendix C. health. The sessions were well attended and Austrade works proactively and respectfully with provided employees with evidence-based individuals to ensure that personal injury case strategies for building good mental health management is effective and that employees and wellbeing. are able to return to work as soon as possible. Austrade also hosted the Australian Network on Return-to-work strategies are implemented Disability (AND) roundtable forum in Canberra in for all employees, irrespective of workers March 2015. AND is a not-for-profit organisation compensation claims or out-of-work injuries. resourced by its members to advance the inclusion of people with a disability in all Employee assistance programme aspects of business. It assists in developing the Austrade launched its Livewell employee behaviours, attitudes, systems and knowledge to assistance programme, through its provider, successfully engage with people with a disability Optum, in July 2014. The online programme as employees, customers and stakeholders. gives employees access to information, Austrade’s Chief Operating Officer, Marcia advice and support to help improve wellness Kimball, and Disability Champion, Paula Barnett, and wellbeing. welcomed forum attendees and addressed The Livewell programme also provides guidance the group on the importance of inclusion, and to help improve aspects of the employee’s the lead role government agencies play in personal and work life balance, through access overcoming barriers to employment for people to articles, resources and interactive tools and with a disability. content. Resources are designed to assist employees to plan and prepare for upcoming life events or manage ongoing challenges.

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Financial management and business assurance Austrade manages its assets and financial Austrade negotiated 76 new leases and renewed resources to support its operations 75 leases as part of the ongoing management of by maintaining: its property portfolio. Austrade also continued to ›› an effective system of management and identify opportunities for maximising efficiencies internal controls and cost-effectiveness in managing its property ›› accounting, treasury and taxation services portfolio. This was achieved through the relocation of its Perth office, which resulted in a ›› procurement systems and processes that reduction of surplus space and a more cost- achieve value for money effective lease, while complying with work health ›› business systems and processes that provide and safety legislation and relevant building financial and performance information to codes and standards. enhance decision-making and the efficient, effective, economical and ethical use of resources Business continuity planning ›› information technology that is stable and Austrade continued to strengthen its business secure and increases connectivity for staff, continuity programme throughout the year to clients and key stakeholders build resilience across its network of domestic ›› systems to monitor, safeguard and enhance and international offices. Staff knowledge and property and other assets. understanding of business continuity was consolidated through training and scenario- Information on Austrade’s financial performance based exercises conducted across the network. is provided on page 13 and in its financial statements starting on page 169. Austrade worked closely with the Department of Foreign Affairs and Trade to ensure consistency Property management in its approach to business continuity planning Austrade manages an overseas and domestic and testing. property portfolio of 169 leased commercial and During the year, Austrade’s business continuity residential properties. The portfolio comprises and crisis management and response framework properties leased from the Overseas Property continued to prove effective in mitigating risks Office in the Department of Foreign Affairs and attributed to a number of major incidents Trade and from private sector landlords. requiring the activation or review of business In 2014–15, 16 security and property fit-outs continuity plans. These included severe water were completed, improving the safety and shortages in Sao Paulo (see page 131); tropical security of Austrade staff, customers and assets. cyclones in Queensland; the Lindt cafe hostage This included a move to new premises for crisis in Sydney; typhoons in Manila, Fukuoka, the Australian Consulate-General in Bogota, Osaka and Hong Kong; and pandemic threats Colombia, and the opening of the new Australian in Accra. Consulate-General in Houston, United States. Austrade also established a new office in Zurich, Switzerland, which will be formally opened early in 2015–16.

Part 03 / Management and accountability. Financial management and business assurance 161 Security The same standards that apply to Austrade’s domestic legal service providers under Office of During 2014–15, Austrade made further Legal Services Coordination arrangements are enhancements to its security management also applied to all locally engaged international framework to ensure the personal safety and law firms that provide services to Austrade’s protection of Austrade staff, contractors and overseas network. clients, and the continued protection of official information and valuable assets. The legal services provided by external providers to Austrade during the year covered a broad Driven by recommendations made in Austrade’s range of legal disciplines and reflected an protective security and personnel security risk increase in volume and complexity, particularly assessments, these enhancements focused with the additional responsibility in relation to on improved training and security awareness, Austrade’s role as a nominator in the Significant and progressing towards compliance with the Investor and Premium Investor Visa programmes Australian Government Protective Security under the Migration Act 1958. Legal services Policy Framework. also included work relating to ministerial Austrade continued to work closely with other missions and events, and the application of new government agencies, including the Department legislation such as the Public Interest Disclosure of Foreign Affairs and Trade and the Australian Act 2013. Signals Directorate, to develop and implement In addition, demand for internal services appropriate security risk mitigation strategies. increased markedly, particularly in relation to commercial advice, Export Market Development Legal services Grants scheme litigation support, other grants In 2014–15, legal services to Austrade were and programme initiatives. In other aspects, provided by its internal legal team, supported Austrade’s demand for legal services continued by external law firms. Under arrangements at similar levels as in recent years, including: administered by the Attorney-General’s ›› complex contractual negotiations and Department, through the Office of Legal Services drafting of agreements, including leases, Coordination, Austrade also has access to a service proposals and major programme multi-use list of prequalified law firms, which arrangements, such as TradeStart and tourism are split into four areas of legal expertise. This grant programmes (exemptions, qualifications provides Austrade with access to a broad range and collections) of prequalified legal service providers with ›› advice and application of policy on aspects of government law experience who can deliver trade facilitation, financial services, education high-quality, cost-effective specialist external programmes and contractual arrangements legal services as the need arises. The collection and publishing of information on legal service ›› handling of sensitive issues arising from providers through the multi-use list improves labour claims, complaints from clients and the quality of the legal services engaged by commercial disputes, and issues arising from Austrade and the Commonwealth. Austrade’s day-to-day delivery of its services

162 Australian Trade Commission Annual Report 2014–15 03

›› internal staff training on compliance with a central point of contact for advice on the anti-bribery laws as well as an outreach Commonwealth Procurement Rules, Chief programme to business Executive’s Instructions, and procurement and ›› privacy and freedom of information policy contracting processes. and advice No contracts of $100,000 or more were ›› commercial litigation and appeals under the let during 2014‒15 that did not provide for Administrative Appeals Tribunal Act 1975, the Auditor-General to have access to the mainly involving applications under the Export contractor’s premises. Market Development Grants scheme No contracts in excess of $10,000 (inclusive of ›› advice on insurance, legislation, Austrade GST) or standing offers were exempted by the partner arrangements and trade disputes CEO from being published on AusTender on the ›› monitoring and maintaining the quality and basis that they would disclose exempt matters consistency of legal services to business under the Freedom of Information Act 1982. units and Austrade’s international network in Information on publicly available business compliance with the Office of Legal Services opportunities with an estimated value of Coordination standards. $80,000 or more, expected to be undertaken in 2014‒15, are published in Austrade’s annual Purchasing procurement plan, available from the AusTender Austrade’s approach to procuring goods website at www.tenders.gov.au. and services, including consultancies, is consistent with, and reflects the principles Consultants of, the Commonwealth Procurement Rules. Austrade engages consultants when it requires These rules are applied to activities through specialist expertise or when independent the Chief Executive’s Instructions, supporting research, review, advice or assessment operational guidelines and Austrade’s is required. procurement framework. Before engaging consultants, Austrade takes into The core value underpinning the Commonwealth account the skills and resources required for the Procurement Rules is value for money. task, the skills available internally, and the cost- Austrade’s Chief Executive’s Instructions and effectiveness of engaging external expertise. departmental policies have been developed to The decision to engage a consultant is made ensure that it undertakes competitive, non- in accordance with the Public Governance, discriminatory procurement processes, and uses Performance and Accountability Act 2013 and its resources efficiently, effectively, economically related rules, including the Commonwealth and ethically, while making decisions in an Procurement Rules and relevant internal policies. accountable and transparent manner. During 2014–15, 48 new consultancy Austrade supports its employees in contracts were entered into involving total managing procurements by providing actual expenditure of $2,765,052. In addition, information and training on procurement 10 ongoing consultancy contracts were policies and procedures, and maintaining

Part 03 / Management and accountability. Financial management and business assurance 163 active during 2014–15, involving total actual Payments to Small Business are available on the expenditure of $508,668. Table 28 provides Treasury’s website, www.treasury.gov.au. five-year trend information on Austrade’s To ensure that SMEs can engage in fair consultancy contracts. competition for Australian Government business, Annual reports contain information about actual Austrade has adopted procurement practices expenditure on contracts for consultancies. that support SMEs, which is consistent Information on the value of contracts and with paragraph 5.4 of the Commonwealth consultancies is available on the AusTender Procurement Rules, including, but not limited to: website at www.tenders.gov.au. ›› use of the Commonwealth Contracting Suite for low-risk procurements valued under Procurement initiatives to support $200,000 small business ›› electronic systems and other processes Austrade supports small business participation used to facilitate on-time payment, including in the Commonwealth government procurement the use of payment cards for eligible market. Statistics on the participation in procurements valued under $10,000 procurement contracts of small and medium- ›› mandated competitive sourcing processes for sized enterprises (SMEs) (fewer than all procurements valued at $10,000 or more 200 employees) and small enterprises where there is a competitive market (fewer than 20 employees) are available on the ›› engaging in non-discriminatory procurement Department of Finance’s website at sourcing and contracting practices. www.finance.gov.au/procurement/statistics-on- commonwealth-purchasing-contracts.

Austrade recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government

Table 28: Trends in consultancies, 2010–11 to 2014–15

Consultancies 2010–11 2011–12 2012–13 2013–14 2014–15 Number of existing 11 7 11 10 10 consultancies Number of new consultancies 74 94 18 45 48

Total consultancies 85 101 29 55 58

Total expenditure ($) 4,363,070 2,075,520 842,829 3,279,724 3,273,720

164 Australian Trade Commission Annual Report 2014–15 03

Managing knowledge and information Austrade’s knowledge and information systems for onboarding of referral service providers, underpin its role of advancing Australia’s trade, as well as richer segmentation of information, investment, international education and tourism enhancing the ability to target information interests through information, advice and for future events and opportunities. This services to businesses, the education sector work continues to build on the foundations and government. from the previous year. The second update streamlines the system to improve the ways Austrade’s information technology connects staff in which Austrade manages and services across its network of 79 overseas locations in trade opportunities. 47 markets, as well as 10 offices in Australia. In 2014–15, Austrade made further It facilitates the connection of Australian and enhancements to ‘The Hub’, an integrated foreign businesses and institutions with Austrade system and single entry point for access to in order to pursue trade, investment, tourism and Austrade’s core knowledge and information international education opportunities. assets, which was implemented in 2013–14. The Austrade ICT Strategy and Four-Year Plan: Enhancements focused on improvements 2013–2017 outlines the overarching approach to to the search functionality, as well as the the management of Austrade’s ICT resources to redevelopment of the homepage and news meet its future needs. The key themes include: portal. Some technical performance tuning work ›› accessible and available Austrade information was also undertaken to increase responsiveness to clients and stakeholders and performance at Austrade’s offices offshore.

›› enhanced capture and use of Austrade In 2015–16, The Hub will continue to evolve as information to improve effectiveness, provide planned improvements to usability and archiving insight and guide decisions are implemented. ›› a ‘better connected Austrade’ by providing flexible ways to communicate and collaborate Data centres, hosting and cloud-based ›› improved service delivery over the network. service delivery In 2014–15, Austrade successfully migrated Business systems its data centres to externally managed, Austrade’s Relationship Management government-approved off-site facilities, and re- System is the core business system for engineered and redesigned its service delivery, managing and sharing information about using an internal cloud approach. The Austrade Austrade’s relationships and interactions with ICT environment is now 100 per cent virtualised, other organisations. and ICT workloads are no longer tied directly to the hardware resources and infrastructure they Two main updates were implemented for the run, which allows for greater efficiency, flexibility Relationship Management System throughout and improved use of ICT resources. It is also an the year. The first delivered further integration important step in terms of shifting appropriate with the Austrade website, providing a process ICT workloads to the cloud.

Part 03 / Management and accountability. Managing knowledge and information 165 The new data centres and technologies have notebooks with lighter and faster computers changed the way ICT operations are run and updated business software. This will by providing greater automation, improving provide better performing devices with reliability and availability, occupying less increased mobility and portability floor space, making more efficient use of ICT ›› secure wireless connectivity in the majority of equipment, and consuming less power. Austrade office locations worldwide to enable The migration project was run on time and staff to work more flexibly in the office to budget. The success of this project was ›› deployment of a mobile solution for secure recognised corporately, with the Austrade access to corporate information from project team receiving a 2014 Global Austrade devices such as smartphones. This work has Staff Award (see page 156). included the introduction of a new ‘bring your own device’ policy that enables a greater In parallel, Austrade continues to take advantage number of Austrade staff to gain access to of cloud computing and hosting arrangements corporate information where applicable. As a result, a number of Austrade’s IT workloads have been migrated ›› Austrade Anywhere—a remote access facility to external facilities, hosting companies and for staff to be able to gain secure access ‘software as a service’ providers. to core ICT services from non-corporate computers and devices. Austrade will Austrade has adopted a new cloud service continue to enhance this service in 2015–16. policy consistent with the Australian Government Cloud Computing Policy, which requires all Wide area network initiatives to be reviewed for compatibility in situations where they demonstrate value for Austrade is collaborating with the Department of money and adequate security. Foreign Affairs and Trade on a joint initiative to market-test wide area network service contracts, Enterprise mobility through a single procurement exercise. This will result in one vendor, which will provide services A key component of Austrade’s ICT strategy to both agencies, with customised management, is to support its highly mobile workforce and technical and financial arrangements in place provide contemporary ICT solutions for the to suit the specific needs of each agency. ever-changing way in which Austrade staff Economies of scale in purchasing, and the work. In 2014–15, Austrade continued its removal of duplicate telecommunications focus on delivering its enterprise mobility infrastructure where the agencies co-locate, are programme called ‘Austrade on the Go’. The key two of the key benefits Austrade aims to achieve elements are: from this initiative, as well as an overall reduction ›› a software, workstation and portability in operational costs. programme, called ‘SWAPP2015’, to replace Austrade’s existing fleet of desktops and

166 Australian Trade Commission Annual Report 2014–15 03

Information security Other business projects and key ICT initiatives Austrade continued to strengthen its information security framework in 2014–15, particularly Austrade also provided specific ICT support for a in response to the increased volume and range of corporate projects throughout the year, sophistication of cyber attacks. Of specific note including support for the upcoming Significant was the enhanced protection provided through Investor and Premium Investor Visa programmes, the facilities and technologies at Austrade’s which will be coming online in the next financial new data centres. Austrade is in the final phase year, revising the corporate market planning of the security assessment and accreditation tool to meet 2014–15 planning cycle needs, and of the data centres to ensure effective establishing Austrade’s connection to the whole- security measures are in place to protect its of-government Parliamentary Workflow System. information assets. Other key ICT initiatives delivered by Austrade during 2014–15 included: Web accessibility ›› the introduction of a contemporary IT support The Australian Government Information system, which improved the tracking and Management Office (AGIMO) has published management of support issues across and mandated compliance with Web Content Austrade’s globally dispersed network Accessibility Guidelines at various levels over a ›› the implementation of a ‘small office solution’ number of years. to provide small Austrade offices with Austrade continues to focus on making its ICT connectivity and access to key services systems compliant for web accessibility so ›› the completion of an ‘Enterprise Vault’ that its content is accessible by people with a repository that helps users manage email and diverse range of hearing, movement, sight and provides a central, searchable and reliable cognitive abilities. This has included work on its repository for all Austrade email public-facing websites, including ›› continued enhancements of system www.austrade.gov.au and monitoring technology to enable better IT www.studyinaustralia.gov.au. Austrade provides support for Austrade users and proactive formal feedback regarding Web Content identification of potential issues. Accessibility Guidelines via the AGIMO Web Accessibility National Transition Strategy survey.

Part 03 / Management and accountability. Managing knowledge and information 167 ICT solutions for a highly-mobile workforce

Austrade’s Information and Technology voice capability, instant messaging, video Services Branch is delivering contemporary conference facilities and the rollout of wi-fi solutions that enable staff to stay connected networks provide staff with collaboration and and in touch with clients and colleagues communication options while in the office and across its extensive global network. on the go.

In 2014–15, the ‘Austrade on the Go’ Progress made in 2014–15 to deliver core programme, illustrated in Figure 29, delivered functionality from the Austrade on the Go a number of key initiatives that provide easy- programme is strengthening the way the to-use mobile access to Austrade information. agency operates. Austrade’s highly mobile The aim of these initiatives is to allow staff to workforce is now better equipped to assist dedicate more time to client interaction and Australian businesses, education institutions, decrease time spent working in the office. tourism operators, governments and citizens contribute to Australia’s economic prosperity. The programme’s mobility component provides staff with options to securely access The Austrade on the Go Austrade information using mobile devices Figure 29: programme such as smartphones and tablets. Eligible staff have access to the ‘Corporate Container’ mobility solution from either an Austrade- C r o e n rp i owned (choose your own device) or their own o ta rate Con (bring your own device) compatible mobile device. The solution is designed to be device- independent in response to the rapid pace of change in the mobile device market. Austrade

R s on the Go e s m e w st Austrade’s mobile and globally distributed ote acc i-ﬁ at po workforce rely on being effective and efficient collaborators and communicators. Austrade’s SWAPP2015 desktop equipment replacement focused on providing tools

S and services to enhance collaboration and W 15 APP 20 communication. This delivered a range of new tools and services that enable staff to work in SWAPP2015 = Software, Workstation and Portability a way that best suits their needs. Integrated Programme 2015

168 Australian Trade Commission Annual Report 2014–15 04 PART FINANCIAL STATEMENTS for the period ended 30 June 2015

Independent auditor’s report 170

Certification of financial statements 172

Notes to and forming part of the financial statements 183 Independent auditor’s report

170 Australian Trade Commission Annual Report 2014–15 04

Part 04 / Financial statements 171 Certification of financial statements

172 Australian Trade Commission Annual Report 2014–15 04

Australian Trade Commission Statement of Comprehensive Income for the period ended 30 June 2015

2015 2014 Notes $'000 $'000 NET COST OF SERVICES Expenses Employee benefits 4A 129,294 124,641 Suppliers 4B 74,642 71,345 Depreciation and amortisation 8D 19,203 18,068 Write-down and impairment of assets - 12 Losses from asset sales 49 43 Foreign exchange losses 1,088 666 Total expenses 224,276 214,775

Own-Source Income Own-source revenue Sale of goods and rendering of services 5A 22,913 20,975 Rental income 75 85 Other revenue 3,040 2,851 Total own-source revenue 26,028 23,911

Gains Other gains 5B 257 326 Total gains 257 326 Total own-source income 26,285 24,237

Net cost of services 197,991 190,538

Revenue from Government 182,483 176,760

Deficit attributable to the Australian Government (15,508) (13,778)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Change in asset revaluation surplus 304 3,697 Total other comprehensive income/(loss) 304 3,697 Total comprehensive income/(loss) attributable to the Australian Government (15,204) (10,081)

The above statement should be read in conjunction with the accompanying notes.

Part 04 / Financial statements 173 2 Australian Trade Commission Statement of Financial Position as at 30 June 2015

2015 2014 Notes $'000 $'000 ASSETS Financial assets Cash and cash equivalents 5,881 3,594 Trade and other receivables 7A 47,674 43,108 Total financial assets 53,555 46,702

Non-financial assets Land and buildings 8A,D 13,382 14,346 Property, plant and equipment 8B,D 18,084 19,064 Intangibles 8C,D 21,735 22,586 Other non-financial assets 8E 7,769 7,913 Total non-financial assets 60,970 63,909

Total assets 114,525 110,611

LIABILITIES Payables Suppliers 9A 11,077 12,218 Other payables 9B 6,249 5,176 Total payables 17,326 17,394

Provisions Employee provisions 10A 32,890 33,358 Other provisions 10B 1,395 2,342 Total provisions 34,285 35,700

Total liabilities 51,611 53,094

Net assets 62,914 57,517

EQUITY Contributed equity 87,302 66,701 Reserves 66,319 66,015 Retained surplus/(Accumulated deficit) (90,707) (75,199) Total equity 62,914 57,517

The above statement should be read in conjunction with the accompanying notes.

174 Australian Trade Commission Annual Report 2014–15 3 04 4 - 2014 $'000 3,697 4,129 63,469 63,469 11,020 57,517 (4,818) (2,073) (13,778) (10,081) - - 304 Total equity Total 2015 3,314 $'000 57,517 57,517 17,287 20,601 62,914 (15,508) (15,204) - - - 2014 $'000 4,129 62,572 66,701 62,572 62,572 11,020 (4,818) (2,073) - - - - 2015 Contributed 3,314 3,314 $'000 equity/capital 66,701 66,701 20,601 87,302 17,287 17,287 ------2014 $'000 38,725 38,725 38,725 38,725 ------2015 $'000 38,725 38,725 38,725 General reserve - - - - - 2014 $'000 3,697 3,697 3,697 23,593 27,290 23,593 23,593 - - - - - surplus 304 304 304 2015 $'000 27,290 27,290 27,594 Asset revaluation ------2014 $'000 (61,421) (61,421) (13,778) (13,778) (75,199) ------2015 $'000 Retained earnings (75,199) (75,199) (15,508) (15,508) (90,707) income balance capital Opening balance previous from forward period carried Balance Adjusted opening Comprehensive income the period for Surplus/(Deficit) Other comprehensive income comprehensive Total with owners Transactions owners to Distributions Returns of Restructuring Contributions by owners injection Equity budget capital Departmental with transactions Total owners 30at June balance as Closing Australian Trade Commission Commission Australian Trade of Changes in EquityStatement 30 June 2015 ended for the period notes. accompanying the with conjunction in read be should statement above The

Part 04 / Financial statements 175 Australian Trade Commission Cash Flow Statement for the period ended 30 June 2015

2015 2014 Notes $'000 $'000

OPERATING ACTIVITIES Cash received Appropriations 181,766 176,775 Sales of goods and rendering services 23,037 21,961 Net GST received 3,731 4,393 Other 2,781 2,649 Total cash received 211,315 205,778

Cash used Employees 129,599 124,723 Suppliers 78,998 77,321 Total cash used 208,597 202,044 Net cash from/(used by) operating activities 12 2,718 3,734

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 180 210 Total cash received 180 210

Cash used Purchase of property, plant and equipment 18,651 23,752 Total cash used 18,651 23,752 Net cash from/(used by) investing activities (18,471) (23,542)

FINANCING ACTIVITIES Cash received Contributed equity 18,040 19,928 Total cash received 18,040 19,928

Net cash from/(used by) financing activities 18,040 19,928

Net increase/(decrease) in cash held 2,287 120 Cash and cash equivalents at the beginning of the reporting period 3,594 3,474 Cash and cash equivalents at the end of the reporting period 5,881 3,594

The above statement should be read in conjunction with the accompanying notes.

176 Australian Trade Commission Annual Report 2014–15 5 04

Australian Trade Commission Schedule of Commitments as at 30 June 2015

1 year to 5 2015 < 1 year years > 5 years Total $'000 $'000 $'000 $'000 Commitments payable Property, plant and equipment1 778 352 - 1,130 Operating leases2 15,691 28,869 4,800 49,360 Other3 13,949 9,915 12 23,876 Total 30,418 39,136 4,812 74,366

Commitments receivable Sublease rental income 1,357 593 - 1,950 Net GST recoverable on commitments 1,522 2,045 171 3,738 Total 2,879 2,638 171 5,688

Net commitments 27,539 36,498 4,641 68,678

1 year to 5 2014 < 1 year years > 5 years Total $'000 $'000 $'000 $'000 Commitments payable Property, plant and equipment1 763 1,039 - 1,802 Operating leases2 14,510 35,207 4,579 54,296 Other3 12,381 8,965 16 21,362 Total 27,654 45,211 4,595 77,460

Commitments receivable Sublease rental income 875 1,246 - 2,121 Net GST recoverable on commitments 1,553 2,332 368 4,253 Total 2,428 3,578 368 6,374

Net commitments 25,226 41,633 4,227 71,086

Note: Commitments are GST inclusive where relevant.

1 Property, plant and equipment commitments are primarily contracts for purchases of leasehold improvements and motor vehicles. 2 Operating leases, which relate primarily to office/residential accommodation, are effectively non-cancellable; they comprise:

Office and residential accommodation General description of leasing arrangement The Commission has leases with the Commonwealth, Department of Foreign Affairs and Trade and commercial landlords in Australia and overseas on terms and conditions negotiated in each market. The terms and conditions of the leases vary widely depending on the circumstances in the relevant country and the specific terms of each lease.

3 Other commitments mainly comprise contracts for Tradestart and contracts for IT services.

The above schedule should be read in conjunction with the accompanying notes.

Part 04 / Financial statements 177 6 Australian Trade Commission Administered Schedule of Comprehensive Income for the period ended 30 June 2015

2015 2014 Notes $'000 $'000 NET COST OF SERVICES Expenses Employee benefits 17A 5,234 5,419 Suppliers 17B 1,547 1,251 Grants 17C 139,220 117,937 Total expenses 146,001 124,607

Income Revenue Non-taxation revenue Other revenue 270 372 Total non-taxation revenue 270 372 Total revenue 270 372 Total income 270 372 Net (cost of)/contribution by services (145,731) (124,235) Deficit attributable to the Australian Government (145,731) (124,235)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Other comprehensive income - - Total other comprehensive income - - Total comprehensive income/(loss) (145,731) (124,235)

The above schedule should be read in conjunction with the accompanying notes.

178 Australian Trade Commission Annual Report 2014–15 7 04

Australian Trade Commission Administered Schedule of Assets and Liabilities as at 30 June 2015

2015 2014 Notes $'000 $'000 ASSETS Financial assets Cash and cash equivalents - - Trade and other receivables 18A 41 19 Total financial assets 41 19

Total assets administered on behalf of Government 41 19

LIABILITIES Payables Suppliers 19A 52 44 Grants 19B 635 473 Other payables 19C 153 179 Total payables 840 696

Provisions Employee provisions 20A 1,882 1,709 Grants provisions 20B 6,066 8,996 Total provisions 7,948 10,705

Total liabilities administered on behalf of Government 8,788 11,401

Net assets/(liabilities) (8,747) (11,382)

The above schedule should be read in conjunction with the accompanying notes.

Part 04 / Financial statements 179 8 Australian Trade Commission Administered Reconciliation Schedule

2015 2014 $'000 $'000

Opening assets less liabilities as at 1 July (11,382) (8,918)

Net (cost of)/contribution by services Income 270 372 Expenses Payments to entities other than corporate Commonwealth entities (146,001) (124,607)

Transfers (to)/from the Australian Government Appropriation transfers from Official Public Account Annual appropriations Payments to entities other than corporate Commonwealth entities 148,758 122,147

Appropriation transfers to OPA Transfers to OPA (392) (376)

Closing assets less liabilities as at 30 June (8,747) (11,382)

The above schedule should be read in conjunction with the accompanying notes.

180 Australian Trade Commission Annual Report 2014–15 9 04

Australian Trade Commission Administered Cash Flow Statement for the period ended 30 June 2015

2015 2014 Notes $'000 $'000

OPERATING ACTIVITIES Cash received Net GST received 165 159 Other 260 393 Total cash received 425 552

Cash used Employees 5,087 6,022 Suppliers 1,716 1,441 Grants 141,988 114,906 Total cash used 148,791 122,369 Net cash from/(used by) operating activities 21 (148,366) (121,817)

Net increase/(decrease) in cash held (148,366) (121,817)

Cash and cash equivalents at the beginning of the reporting period - 46 Cash from Official Public Account Appropriations 148,758 122,147 Total cash from official public account 148,758 122,147

Cash to Official Public Account Other (392) (376) Total cash to official public account (392) (376)

Cash and cash equivalents at the end of the reporting period - -

The above statement should be read in conjunction with the accompanying notes.

Part 04 / Financial statements 181 10 Australian Trade Commission Schedule of Administered Commitments as at 30 June 2015

1 year to 5 2015 < 1 year years > 5 years Total $'000 $'000 $'000 $'000 Commitments payable Operating leases 393 965 192 1,550 Other1 1,292 292 - 1,584 Total 1,685 1,257 192 3,134

Commitments receivable Sublease rental income 9 6 - 15 Net GST recoverable on commitments 153 114 17 284 Total 162 120 17 299

Net commitments 1,523 1,137 175 2,835

1 year to 5 2014 < 1 year years > 5 years Total $'000 $'000 $'000 $'000 Commitments payable Operating leases 415 1,044 402 1,861 Other1 750 1,457 - 2,207 Total 1,165 2,501 402 4,068

Commitments receivable Net GST recoverable on commitments 106 227 37 370 Total 106 227 37 370

Net commitments 1,059 2,274 365 3,698

Note: Commitments are GST inclusive where relevant.

1 The nature of other commitments is motor vehicle leasing and contracts for IT services.

The above schedule should be read in conjunction with the accompanying notes.

182 Australian Trade Commission Annual Report 2014–15 11 Notes to and forming part of the financial statements 04

Table of Contents - Notes

Note 1: Summary of Significant Accounting Policies ...... 184 Note 2: Events After the Reporting Period ...... 193 Note 3: Net Cash Appropriation Arrangements ...... 194 Note 4: Expenses ...... 194 Note 5: Own-Source Income ...... 195 Note 6: Fair Value Measurements ...... 196 Note 7: Financial Assets ...... 199 Note 8: Non-Financial Assets ...... 201 Note 9: Payables ...... 205 Note 10: Provisions ...... 206 Note 11: Restructuring...... 207

Note 12: Cash Flow Reconciliation ...... 208 Note 13: Contingent Assets and Liabilities ...... 209 Note 14: Senior Management Personnel Remuneration ...... 210 Note 15: Financial Instruments ...... 211 Note 16: Financial Assets Reconciliation ...... 215 Note 17: Administered Expenses ...... 216 Note 18: Administered Financial Assets...... 217 Note 19: Administered Payables ...... 219 Note 20: Administered Provisions ...... 220 Note 21: Administered Cash Flow Reconciliation ...... 221

Note 22: Administered Contingent Assets and Liabilities ...... 222

Note 23: Administered Financial Instruments ...... 222 Note 24: Administered Financial Assets Reconciliation...... 223 Note 25: Appropriations ...... 224 Note 26: Special Accounts ...... 229 Note 27: Assets Held in Trust ...... 229 Note 28: Reporting of Outcomes ...... 230 Note 29: Budgetary Reports and Explanations of Major Variances ...... 233

Part 04 / Financial statements12 183 Australian Trade Commission Notes to and forming part of the financial statements

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Australian Trade Commission

The Australian Trade Commission (the Commission) is an Australian Government controlled entity. It is a not-for-profit entity.

The Commission is the Australian Government’s international trade, education and investment promotion agency. It also has responsibility for tourism policy and research where the Government’s focus is on international tourism. The objective of the Commission is to contribute to Australia’s economic prosperity by helping Australian businesses, education institutions, associations, and governments as they develop international markets, win productive foreign investment, promote international education, and strengthen the Australian tourism industry.

The Commission is structured to meet the following outcomes:

Outcome 1: Contribute to Australia’s economic prosperity by promoting Australia’s export and other international economic interests through the provision of information, advice and services to business, associations, institutions and government.

Outcome 2: The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas.

The continued existence of the Commission in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Commission's administration and programs.

The Commission's activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Commission in its own right. Administered activities involve the management or oversight by the Commission, on behalf of the government, of items controlled or incurred by the government.

The Commission conducts the following administered activities on behalf of the Government:

 Export Market Development Grants Scheme; and  Asian Business Engagement Plan.

184 Australian Trade Commission Annual Report 2014–15 13 04

Australian Trade Commission Notes to and forming part of the financial statements

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The financial statements have been prepared in accordance with:

 Finance Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014; and

 Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the Commission or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the contingencies note

Unless an alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the Commission has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

 The fair value of leasehold improvements has been taken to be the depreciated replacement cost as determined by an independent valuer by reference to the gross replacement cost;

 The fair value of plant and equipment has been determined by reference to the market value of similar assets;

 The liability for long service leave has been estimated using present value techniques, which take account of attrition rates and pay increases through promotion and inflation;

 The liability for grants lodged and payable under the EMDG Scheme but not yet determined has been estimated by reference to payment histories in previous years;

 The liability for grant appeals lodged under the EMDG Scheme but not yet finalised has been estimated by reference to successful appeals histories in previous years; and

 The provision for impairment of departmental financial assets has been determined by reference to collection histories in previous years and the current debt profile.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Part 04 / Financial statements 185 14 Australian Trade Commission Notes to and forming part of the financial statements

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

The following new Standard was issued by the Australian Accounting Standards Board prior to the signing of the statement by the Chief Executive and Chief Finance Officer and had a material impact on the Commission’s financial statements:

Standard/ Interpretation Nature of change in accounting policy, transitional provisions1, and adjustment to financial statements AASB 1055 Budgetary Requires reporting of budgetary information by not-for-profit entities within the General Reporting Government Sector (however, comparative information is not required). In particular: - original budget presented to Parliament; - variance of actuals from budget; and - explanations of significant variances. 1. When transitional provisions apply, all changes in accounting policy are made in accordance with their respective transitional provisions.

All other new, revised, or amending Standards or Interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect, and are not expected to have a future material effect, on the Commission’s financial statements.

Future Australian Accounting Standard Requirements

The following new, revised or amending Standards or Interpretations were issued by the Australian Accounting Standards Board prior to the signing of the statement by the Chief Executive and Chief Finance Officer, which are expected to have a material impact on the Commission’s financial statements for future reporting periods:

Standard/ Interpretation Application date Nature of impending change/s in accounting policy and likely impact on for the initial application Commission1 AASB 15 Revenue from 1 July 2017 AASB 15: Contracts with Customers - establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, with revenue recognised as 'performance obligations' are satisfied; and - will apply to contracts of not-for-profit entities that are exchange transactions. AASB 1004 Contributions will continue to apply to non- exchange transactions. Likely impact: The Commission is yet to undertake a detailed assessment of the impact of AASB 15. However, based on the Commission’s preliminary assessment, it is expected to have a significant impact on the timing of the recognition of revenue. AASB 9 Financial 1 July 2018 AASB 9 now incorporates: Instruments - the classification and measurement requirements for financial assets and for financial liabilities, and the recognition and derecognition requirements for financial instruments; - requirements for impairment of financial assets; and - hedge accounting. Likely impact: The Commission is yet to undertake a detailed assessment of the impact of AASB 9. However, based on the Commission’s preliminary assessment, it is expected to have a significant impact on the recognition and measurement of the Commission’s financial instruments. 1. The Commission’s expected initial application date is when the accounting standard becomes operative at the beginning of the Commission’s reporting period.

186 Australian Trade Commission Annual Report 2014–15 15 04

Australian Trade Commission Notes to and forming part of the financial statements All other new, revised or amending Standards or Interpretations that were issued prior to the sign-off date and are applicable to future reporting periods are not expected to have a future material impact on the Commission’s financial statements.

1.5 Revenue

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer;

b) the Commission retains no managerial involvement or effective control over the goods;

c) the revenue and transaction costs incurred can be reliably measured; and

d) it is probable that the economic benefits associated with the transaction will flow to the Commission.

Revenue from the rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b) the probable economic benefits associated with the transaction will flow to the Commission.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the total estimated costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the Commission gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

1.6 Gains

Resources Received Free of Charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another non-corporate or corporate Commonwealth entity as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

Equity Injections

Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Part 04 / Financial statements16 187 Australian Trade Commission Notes to and forming part of the financial statements

1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period 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.

Other long term employee benefit liabilities are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provisions for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Commission's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave is estimated using present value techniques, which take account of attrition rates and pay increases through promotion and inflation.

For employees engaged overseas, liabilities for separation entitlements are calculated in accordance with local employment conditions.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The Commission recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

Australian based staff of the Commission are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the Public Sector Superannuation accumulation plan (PSSap), and a small number of other complying funds nominated by employees.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.

The Commission makes employer contributions to the employees' superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. The Commission accounts for the contributions as if they were contributions to defined contribution plans.

For employees engaged overseas, the Commission pays employer contributions to meet its superannuation obligations, which vary according to local employment conditions.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final pay period of the year and other amounts payable in relation to 2014-15.

188 Australian Trade Commission Annual Report 2014–15 17 04

Australian Trade Commission Notes to and forming part of the financial statements

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

Security deposits in relation to overseas property leases are payable to the Commission on the termination of individual leases. These deposits are classified as current or non-current receivables as appropriate.

Lease incentives taking the form of payments from landlords, subsidised fitout, or rental holidays, are recognised as liabilities. These liabilities are reduced by allocating future lease payments between rental expense and reduction of the liability.

1.10 Fair Value Measurement

The Commission deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period, by re- assessing categorisation based on the lowest level input that is significant to the fair value measurement as a whole.

1.11 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, cash at banks and deposits held at call with banks and includes cash in special accounts.

1.12 Financial Assets and Liabilities

Recognised Financial Assets and Liabilities

Financial assets and liabilities are measured at fair value. In practice this means that receivables are measured at their nominal amounts, less any allowance for impairment losses. Provisions are made when collection of the debt is judged to be less rather than more likely.

Trade creditors and accruals are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced) and measured at their nominal amounts, being the amounts at which they will be settled.

1.13 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.14 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.

Part 04 / Financial statements 189 18 Australian Trade Commission Notes to and forming part of the financial statements

1.15 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $5,000 ($3,500 for computer equipment), which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located where there is a reasonable prospect that this will be required.

Revaluations

Fair values for each class of asset are determined as shown below:

Asset class Fair value measurement Land and Buildings -Leasehold improvements Depreciated replacement cost Property, plant and equipment -Plant and equipment Market selling price

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future, reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2015 2014 Leasehold improvements Lease term or assessed life Lease term or assessed life Property, plant and equipment 3 to 10 years 3 to 10 years

Impairment

All assets were assessed for impairment at 30 June 2015. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Commission were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

190 Australian Trade Commission Annual Report 2014–15 19 04

Australian Trade Commission Notes to and forming part of the financial statements Restoration Provisions

Provisions for restoration represent restoration obligations in respect of information and communications technology equipment. The provisions are the best estimate of the present value of the expenditure required to settle the restoration obligations at reporting date, based on current security and legal requirements and technology. The amount of the provision for future restoration costs is capitalised as a Property, Plant and Equipment asset and amortised over the asset’s life.

1.16 Intangibles

The Commission's intangibles comprise internally developed and purchased software for internal use and other intellectual property. Other intellectual property comprises databases, still and moving images and website resources. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Intangible asset development projects in progress, where future economic benefits are assessed as probable, are recognised progressively as assets and measured at cost. Amortisation begins when the asset is first put into use or held ready for use.

Intangible assets are amortised on a straight-line basis over their anticipated useful life. The useful lives of the Commission's intangibles are 3 to 10 years (2013-14: 3 to 10 years).

All intangible assets were assessed for indications of impairment at 30 June 2015. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

1.17 Taxation/Competitive Neutrality

The Commission is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

The Commission also pays various in-country taxes applicable to its overseas operations.

Revenues, expenses and assets are recognised net of GST or equivalent except where the amount of GST or equivalent incurred is not recoverable from the Australian Taxation Office and except for receivables and payables.

Competitive Neutrality

The Commission has not been required to make any competitive neutrality payments.

1.18 Foreign Currency

Transactions denominated in a foreign currency are translated to Australian currency using the exchange rate at the date of the transaction. At reporting date, foreign currency receivables and payables or assets and liabilities are translated at the exchange rates current as at that date. All exchange gains and losses are recognised as revenues or expenses, as appropriate.

The Commission's operating budget funding for overseas activities is adjusted for any differences in realised foreign exchange transactions during the year against rates set at Budget by the Department of Finance. Adjustments are generally made to the Appropriation Bills in the current or following year. Any amounts so receivable or payable at the end of the reporting period are recognised as assets or liabilities as appropriate.

1.19 Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

Part 04 / Financial statements 191 20 Australian Trade Commission Notes to and forming part of the financial statements

1.19 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the Commission for use by the Government rather than the Commission is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Commission on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Grants

The Commission, on behalf of the Government, administers grants relating to the Export Market Development Grants Scheme (EMDG) and Asian Business Engagement Plan (ABE).

Export Market Development Grants are brought to account when deemed payable in accordance with the provisions of the Export Market Development Grants Act 1997. However, a provision is also recognised at the end of the financial year for the likely payments arising from grants claims and appeals lodged but not yet finalised based on prior years' payment history.

ABE grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied.

192 Australian Trade Commission Annual Report 2014–15 21 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 2: Events After the Reporting Period

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Commission.

Part 04 / Financial statements 193 22 Australian Trade Commission Notes to and forming part of the financial statements

Note 3: Net Cash Appropriation Arrangements

2015 2014 $'000 $'000 Total comprehensive income/(loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 3,999 7,987 Plus: depreciation/amortisation expenses previously funded through revenue appropriation (19,203) (18,068)

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (15,204) (10,081)

1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

Note 4: Expenses

Note 4A: Employee Benefits Wages and salaries 92,958 89,191 Superannuation Defined contribution plans 3,911 3,709 Defined benefit plans 5,526 5,788 Leave and other entitlements 19,252 18,689 Separation and redundancies 1,762 3,735 Fringe benefits tax 5,885 3,529 Total employee benefits 129,294 124,641

Note 4B: Suppliers Goods and services supplied or rendered Contractors, consultants and service providers 14,269 11,278 Non-lease property related costs 6,507 5,852 Publicity and promotions 7,783 8,134 Communications and information technology 4,733 4,915 Travel and related expenses 9,078 8,181 Tradestart payments 2,344 3,183 Other operating costs 8,394 9,216 Total goods and services supplied or rendered 53,108 50,759

Services rendered in connection with Related parties 588 496 External parties 52,520 50,263 Total services rendered 53,108 50,759 Total goods and services supplied or rendered 53,108 50,759

Other suppliers Operating lease rentals in connection with Related parties Minimum lease payments 3,830 4,044 External parties Minimum lease payments 17,244 16,104 Workers compensation expenses 460 438 Total other suppliers 21,534 20,586 Total suppliers 74,642 71,345

23 194 Australian Trade Commission Annual Report 2014–15 04 Australian Trade Commission Notes to and forming part of the financial statements

Note 5: Own-Source Income

Own-Source Revenue 2015 2014 $'000 $'000 Note 5A: Sale of Goods and Rendering of Services Rendering of services in connection with Related parties 10,881 11,846 External parties 12,032 9,129 Total rendering of services 22,913 20,975

Note 5B: Other Gains Resources received free of charge Remuneration of auditors1 160 160 Leasehold improvements - 166 Other 97 - Total other gains 257 326

1. KPMG was engaged by the ANAO in 2014-15 to provide financial statement audit services to the Commission. KPMG provides other services to the Commission in the nature of consultancies and the provision of financial reporting tools and associated training and support. Fees for other services performed by KPMG were $0.100m in 2015 (2014: $0.017m), which are included in contractors, consultants and service providers at Note 4B.

24 Part 04 / Financial statements 195 25 N/A measurement. ificantly higher (lower) higher (lower) ificantly fair fair value measurement. value measurement of the the fair value measurement of the of value measurement the fair the fair to changes in unobservable inputs significantly higher (lower) fair value higher (lower) fair significantly service capacity. Significant increases increases capacity. Significant service acquiring similar assets with equivalent equivalent assets with acquiring similar equipment are the costs of producing or producing of the costs equipment are Commission’s other property, plant and otherplant and Commission’s property, gnificant increases (decreases) of any of of (decreases) any of increases gnificant those inputs in isolation would result in a a in would result isolation thosein inputs Si costs per square metre of similar leasehold similar of metre costsper square Commission’s leasehold improvements are are leaseholdCommission’s improvements The usedsignificant unobservable inputs The in usedsignificant unobservable inputs The in Sensitivity of the fair value measurement fairvalue the of measurement Sensitivity would result in sign would a result improvements in the relevant city or country. or country. city in relevant improvements the (decreases) of any of those in of of inputs isolation any (decreases) - - 2 N/A $502 $502 Range $28,617 $28,617 ($2,129) $0.153m $0.153m average) $0.000m $0.000m (weighted ($0.002m) Inputs used Inputs Sale prices of prices Sale of service capacity service acquiring similar acquiring similar comparable assets comparable Costs of producing or producing Costsof Cost metre per square assets equivalent assets with 1 Valuation Valuation Depreciated Depreciated Depreciated technique(s) replacement cost replacement cost replacement For Levels 2 and 3 fair value 3 fair measurements 2 Levels and For Market approach ) 5 (Level Level 3 Level 2 Level 3 Category 1, 2 or 3 2 or 1, 2014 $'000 1,795 1,795 33,410 33,410 14,346 14,346 17,269 2015 1,058 1,058 $'000 end of the reporting period 31,466 31,466 13,382 13,382 17,026 Fair value measurements at the at value Fair measurements 3 4 financial assets financial Fair Value Measurements - financial assets - Note 6A: Fair Value Measurements, Valuation UsedTechniques and Measurements, Inputs 6A: Value Valuation Fair Note Non Leasehold improvements plant equipment Otherand property, plant equipment Otherand property, non Total value fair of Total measurements financial statement of in the assets position Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements Note 6: value. fair at and measured of liabilitiesare assets that tables provide following an analysis The defined are below. the of value hierarchy fair levels different The or Commission date. identical liabilitiesthe for assets that markets measurement at active in (unadjusted) access can 1: Quoted prices Level either directly or theliability, 1 asset observablefor that are or indirectly. Level includedprices within quoted 2:other Inputs Level than orliability. theasset inputsfor 3: Unobservable Level

196 Australian Trade Commission Annual Report 2014–15 04 26 e of similar leasehold improvements in the relevant in relevant or the leasehold city similar improvements of e t are the costs of producing or acquiring similar similar equivalent assets with or producing acquiring costsof the t are

sensitivity analysis for financial assets and liabilities assets and financial sensitivity analysisfor – t unobservable inputs used in the fair value measurement of the Commission’s leasehold improvements are costsper square metr are improvements leasehold the Commission’s of value measurement fair used the t inputs unobservable in 3 and relied on valuation models provided by Pickles. The remaining items of other property, plant and equipment are subject to management valuation using market based evidence. based evidence. Pickles. subjectmanagement using market The to valuation of providedare plant by other equipment remaining and property, items The models valuation on 3 relied and No change in valuation technique occurred during the period. period. the during occurred technique valuation in change No For leasehold improvements, the Commission procured valuation services from Colliers International (Colliers) and relied on valuation on (Colliers) relied Colliers and analyses International Commission from Colliers. changes The provided by services models procured valuation Commission the For improvements, leasehold that theCommission model 13. AASB to with the assurance compliance provided written in is 12developed months. Colliers once at every least measurements value in fair in Pickles(Pickles) Valuation Services from services procured valuation depreciated Commission at cost, the measured plantotherof of equipment and replacement items property, For majority the 201 service capacity. Significant increases (decreases) of any of those inputs in isolation would result in a significantly higher (lower) fair higher (lower) fair significantly a in value would result measurement. isolation thosein of of inputs (decreases) any capacity.increases Significant service Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements 1. and fittings. and non-specialised furniture assets, vehicles 3.motor IT Comprises assets. IT specialised 4. Comprises (NFAs) assets non-financial for use current from differs use best and highest - measurements value Fair 5. as their use. thecurrent same are non-financial assets all highestbestuseand of The processes value 3 measurements non-recurring fair - and valuation Level 6. Recurring 12 months. every once at valueleast in measurements changes fair analyses Commission value 3 measurements fair Level 7. Recurring value highermeasurement. (lower) fair isolation those of inputs any in of significantly (decreases) a result in would increases Significant country. plant equipmen and property, other the Commission’s of value measurement fair used the significant inputs unobservable in The 2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category. Level in liabilities or the assets Notfor only. applicable inputs unobservable 2. Significant The significan The

Part 04 / Financial statements 197 27 2014 (134) 3,697 3,697 2,959 $'000 14,255 14,255 16,141 (4,636) Total 304 304 (13) 2015 2,770 2,770 $'000 16,141 16,141 14,440 (4,762) - - 2014 (133) $'000 3,075 3,075 1,795 (1,147) plant and equipment Other property, Other property, - - - financial assets 2015 - (737) 1,795 1,795 1,058 $'000 Non plant and equipment Other property, (1) 2014 $'000 3,697 3,697 2,959 11,180 11,180 14,346 (3,489) Leasehold improvements ‘Depreciation and‘Depreciation amortisation’. revaluation surplus’. asset in ‘Change 304 304 (13) 2015 2,770 2,770 $'000 14,346 14,346 13,382 (4,025) Leasehold improvements 2 1 reconciliation for for assets reconciliation - recognised in other comprehensive income other in recognised comprehensive Note 6B: Reconciliation for Recurring Level 3 Fair Value Measurements 3Value Fair Level for Recurring 6B:Note Reconciliation value 3 measurements fair Level Recurring 1 at July As services of net recognisedcost in gains/(losses) Total gains/(losses) Total Purchases Sales 30as at June Total Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements under Income Comprehensive of presented the gains/(losses) Statement are in 1. These under Comprehensive Income of presented the Statement are in gains/(losses) 2. These

198 Australian Trade Commission Annual Report 2014–15 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 7: Financial Assets

2015 2014 $'000 $'000 Note 7A: Trade and Other Receivables Good and services receivables in connection with Related parties 822 608 External parties 3,225 2,319 Total goods and services receivables 4,047 2,927

Appropriations receivables Existing programs 42,848 39,570 Total appropriations receivable 42,848 39,570

Other receivables GST receivable from the Australian Taxation Office 799 641 Total other receivables 799 641 Total trade and other receivables (gross) 47,694 43,138

Less impairment allowance Goods and services 20 30 Total impairment allowance 20 30 Total trade and other receivables (net) 47,674 43,108

Trade and other receivables (net) expected to be recovered No more than 12 months 46,753 42,301 More than 12 months 921 807 Total trade and other receivables (net) 47,674 43,108

Trade and other receivables (gross) aged as follows Not overdue 46,995 42,991 Overdue by 0 to 30 days 290 83 31 to 60 days 84 16 61 to 90 days 162 10 More than 90 days 163 38 Total trade and other receivables (gross) 47,694 43,138

Impairment allowance aged as follows Overdue by: More than 90 days 20 30 Total impairment allowance 20 30

Credit terms for goods and services were within 30 days (2014: 30 days).

Part 04 / Financial statements 199 28 Australian Trade Commission Notes to and forming part of the financial statements

Note 7A: Trade and Other Receivables (continued)

Reconciliation of the Impairment Allowance

Movements in relation to 2015 Goods and services Total $'000 $'000 As at 1 July 2014 30 30 Amounts written off - - Amounts recovered and reversed (23) (23) Increase/(Decrease) recognised in net cost of services 13 13 Total as at 30 June 2015 20 20

Movements in relation to 2014 Goods and services Total $'000 $'000 As at 1 July 2013 162 162 Amounts written off (145) (145) Amounts recovered and reversed - - Increase/(Decrease) recognised in net cost of services 13 13 Total as at 30 June 2014 30 30

200 Australian Trade Commission Annual Report 2014–15 29 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 8: Non-Financial Assets 2015 2014 $'000 $'000 Note 8A: Land and Buildings Leasehold improvements Fair value 12,262 13,501 Leasehold improvements - work in progress - at cost 1,295 1,339 Accumulated impairment losses (175) (494) Total leasehold improvements 13,382 14,346 Total land and buildings 13,382 14,346

Impairment losses of $0.175m (2014: $0.494m) were recognised in other comprehensive income.

No land or buildings are expected to be sold or disposed of within the next 12 months, other than in the normal course of business operations.

Note 8B: Property Plant and Equipment Other property, plant and equipment

Fair value 27,367 20,696 Accumulated depreciation (12,127) (6,307) 15,240 14,389

Property, plant and equipment - work in progress - at cost 2,844 4,675 Total other property, plant and equipment 18,084 19,064 Total property, plant and equipment 18,084 19,064

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months, other than in the normal course of business operations.

Revaluations of non-financial assets

All revaluations were conducted in accordance with revaluation policy stated at Note 1.

The 2015 revaluation of leasehold improvements was conducted by the independent qualified valuer Colliers International Pty Ltd. The revaluation increment for leasehold improvements was $0.479m (2014: $4.191m increment).

A management valuation of other property, plant and equipment was conducted at 30 June 2013. The revaluation increment for other property, plant and equipment was $0.987m in 2013. No revaluation was conducted at 30 June 2015.

All increments and decrements were transferred to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position. No decrements were expensed (2014: no decrements).

Part 04 / Financial statements 201 30 Australian Trade Commission Notes to and forming part of the financial statements

2015 2014 $'000 $'000 Note 8C: Intangibles Computer software Internally developed – in progress 2,995 4,579 Internally developed – in use 32,365 29,997 Purchased 22,447 20,134 Accumulated amortisation (43,784) (35,350) Total computer software 14,023 19,360

Other intangibles1 Internally developed – in progress 4 - Internally developed – in use 8,420 3,227 Purchased - - Accumulated amortisation (712) (1) Total other intangibles 7,712 3,226 Total intangibles 21,735 22,586

1. Other intangibles comprise capital costs in connection with the Tourism International Visitor Survey and National Visitor Survey.

No indicators of impairment were found for intangible assets.

No intangibles are expected to be sold or disposed of within the next 12 months, other than in the normal course of business operations.

202 Australian Trade Commission Annual Report 2014–15 31 0432 - 304 (229) Total $’000 97,654 55,996 16,333 53,201 53,201 109,824 (41,658) (19,203) (56,623) - - - (1) (711) (712) 3,226 7,712 8,424 7,712 3,227 3,227 5,197 $’000 Other internally internally developed intangibles intangibles - - (19) 5,553 4,645 4,645 2,396 2,396 $’000 22,447 20,134 20,134 (3,285) (14,581) (17,802) software Computer purchased - - - 784 784 9,378 9,378 $’000 13,807 35,360 34,576 34,576 (5,213) (20,769) (25,982) software internally internally developed Computer - - (197) 5,186 5,186 $’000 Other 19,064 18,084 30,211 18,084 25,371 25,371 (6,307) (5,969) plant & (12,127) property, equipment - - - - 304 (13) 2,770 2,770 $’000 14,346 13,382 13,382 13,382 14,346 14,346 (4,025) leasehold Buildings Buildings improvements Opening and Closing Balances of Property, Plant and Equipment and Intangibles for 2015 for and Intangibles and Equipment Plant Property, of Closing Balances and Opening Purchase or internally developed Purchase or internally Other Note 8D: Reconciliation of the 8D:the of Reconciliation Note Reconciliation of the opening and closing balancesof property, plant and equipment for 2015 2014 1 July at As value book Gross impairment depreciation and Accumulated Total as at 1 July 2014 Additions income comprehensive other in recognised impairments and Revaluations Depreciation amortisation and Disposals Other movements 2015 30as at June Total Total as at 30 June 2015 represented by value book Gross impairment and depreciation,Accumulated amortisation 2015 30as at June Total Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements

Part 04 / Financial statements 203 33 (2) Total (253) 3,697 $’000 80,541 50,618 20,004 55,996 97,654 55,996 (29,923) (18,068) (41,658) ------(1) (1) 3,226 3,226 3,227 3,227 3,227 Other $’000 internally internally developed intangibles - - (170) 3,587 5,553 5,553 5,122 5,122 $’000 15,296 15,296 20,134 (2,986) (11,709) (14,581) software Computer Computer purchased - - - 4,771 4,771 $’000 13,953 13,807 13,807 32,167 32,167 34,576 (4,917) (18,214) (20,769) software internally internally Computer Computer developed - - 168 168 (252) 3,925 3,925 Other $’000 21,898 19,064 19,064 21,898 21,898 25,371 (6,675) (6,307) plant & property, property, equipment - - - - (1) 2,959 2,959 3,697 $’000 11,180 14,346 14,346 11,180 11,180 14,346 (3,489) leasehold Buildings improvements depreciation, amortisation and impairment and depreciation, amortisation value Purchase or internally developed Purchase or internally Other Reconciliation of the opening and closing balances of property, plant and equipment for 2014 for plant equipment and property, of closing balances opening and theReconciliation of 2013 1at July As book Gross impairment depreciation and Accumulated 2013 1at July as Total Additions income comprehensive other in recognised impairments and Revaluations Depreciation amortisation and Disposals Other movements 30at 2014 as Total June by 30at represented 2014 as Total June value book Gross Accumulated 30at 2014 as Total June Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements

204 Australian Trade Commission Annual Report 2014–15 04

Australian Trade Commission Notes to and forming part of the financial statements

2015 2014 $'000 $'000 Note 8E: Other Non-Financial Assets Prepayments - property leases 5,354 5,695 Prepayments - other 2,415 2,218 Total other non-financial assets 7,769 7,913

Other non-financial assets expected to be recovered No more than 12 months 7,769 7,913 Total other non-financial assets 7,769 7,913

No indicators of impairment were found for other non-financial assets.

Note 9: Payables

Note 9A: Suppliers Trade creditors and accruals 10,996 12,163 GST payable to the Australian Taxation Office 81 55 Total suppliers 11,077 12,218

Suppliers expected to be settled No more than 12 months 10,583 11,778 More than 12 months 494 440 Total suppliers 11,077 12,218

Suppliers in connection with Related parties 720 407 External parties 10,357 11,811 Total suppliers 11,077 12,218

Settlement was usually made within 30 days.

Note 9B: Other Payables Wages and salaries 3,794 3,631 Lease incentives 269 172 Unearned revenue 2,172 1,359 Other 14 14 Total other payables 6,249 5,176

Other payables expected to be settled No more than 12 months 6,042 5,084 More than 12 months 207 92 Total other payables 6,249 5,176

Part 04 / Financial statements 205 34 Australian Trade Commission Notes to and forming part of the financial statements

Note 10: Provisions 2015 2014 $'000 $'000 Note 10A: Employee Provisions Leave 23,985 23,007 Separations and redundancies 8,905 10,351 Total employee provisions 32,890 33,358

Employee provisions expected to be settled No more than 12 months 10,676 12,612 More than 12 months 22,214 20,746 Total employee provisions 32,890 33,358

Note 10B: Other Provisions Provision for onerous contracts 727 1,558 Provision for restoration 668 784 Total other provisions 1,395 2,342

Other provisions expected to be settled No more than 12 months 1,148 1,519 More than 12 months 247 823 Total other provisions 1,395 2,342

Provision for onerous Provision for contracts restoration Total $’000 $’000 $’000 As at 1 July 2014 1,558 784 2,342 Additional provisions made 154 158 312 Amounts used (797) (158) (955) Amounts reversed (188) (116) (304) Total as at 30 June 2015 727 668 1,395

The Commission currently has 88 (2014: 91) agreements for the leasing of premises which have provisions requiring the Commission to restore the premises to their original condition at the conclusion of the lease. The Commission has made a provision to reflect the estimated present value of this obligation where it is considered probable that the clauses in the leases will be enforced by landlords. It is the Commission’s experience that this only applies to a minority of leases.

206 Australian Trade Commission Annual Report 2014–15 35 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 11: Restructuring

Note 11A: Departmental Restructuring

2014 Tourism Policy, Programs and Research: Department of Industry1 $'000 FUNCTIONS ASSUMED Assets recognised Goods and services receivables 10 Appropriations receivable 1,215 Other property, plant and equipment 73 Other non-financial assets 194 Total assets recognised 1,492

Liabilities recognised Employee provisions 2,848 Other payables 717 Total liabilities recognised 3,565 Net assets/(liabilities) recognised2,3 (2,073)

Income assumed Recognised by the receiving entity 2,271 Recognised by the losing entity 2,701 Total income assumed 4,972

Expenses assumed Recognised by the receiving entity 8,490 Recognised by the losing entity 8,939 Total expenses assumed 17,429

1. Responsibility for tourism policy, programs and research was assumed from the Department of Industry during 2013-14 due to an Administrative Arrangements Order made on 3 October 2013. 2. The net liabilities assumed from all entities were $2.073m. 3. In respect of functions assumed, the net book values of assets and liabilities were transferred to the Commission for no consideration.

Part 04 / Financial statements 207 36 Australian Trade Commission Notes to and forming part of the financial statements

Note 12: Cash Flow Reconciliation

2015 2014 $'000 $'000

Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement

Cash and cash equivalents as per Cash flow statement 5,881 3,594 Statement of financial position 5,881 3,594 Discrepancy - -

Reconciliation of net cost of services to net cash from/(used by) operating activities Net (cost of)/contribution by services (197,991) (190,538) Revenue from Government 182,483 176,760

Adjustments for non-cash items Depreciation/amortisation 19,203 18,068 Net write down of non-financial assets - 12 Loss on disposal of assets 49 43

Movements in assets and liabilities Assets (Increase)/Decrease in net receivables (2,005) 712 (Increase)/Decrease in prepayments 144 (543) Liabilities Increase/(Decrease) in employee provisions and payables (468) (646) Increase/(Decrease) in supplier payables 1,177 1,215 Increase/(Decrease) in other payables 1,073 95 Increase/(Decrease) in other provisions (947) (1,444) Net cash from/(used by) operating activities 2,718 3,734

208 Australian Trade Commission Annual Report 2014–15 37 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 13: Contingent Assets and Liabilities

Claims for damages or costs Total 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Contingent liabilities Balance from previous period 64 127 64 127 New contingent liabilities recognised - 64 - 64 Re-measurement - - - - Liabilities realised (20) - (20) - Obligations expired (44) (127) (44) (127) Total contingent liabilities - 64 - 64

Quantifiable Contingencies The above table contains nil contingent liabilities disclosure in 2015 (2014: $0.064m). The 2014 amount represented an estimate of the Commission’s liability based on precedent in such cases. The Commission was defending the claims at 30 June 2014.

Significant Remote Contingencies The Commission has provided bank guarantees for a total of $0.538m (2014: $0.536m) in relation to property leases. These were not included in the above table.

Part 04 / Financial statements 209 38 Australian Trade Commission Notes to and forming part of the financial statements

Note 14: Senior Management Personnel Remuneration

2015 2014 $ $ Short-term employee benefits Salary 12,220,379 11,498,447 Other allowances 1,288,504 1,124,055 Total short-term employee benefits 13,508,883 12,622,502

Post-employment benefits Superannuation 1,998,634 2,041,121 Total post-employment benefits 1,998,634 2,041,121

Other long-term benefits Annual leave 1,060,422 1,043,086 Long-service leave 347,339 442,789 Total other long-term employee benefits 1,407,761 1,485,875

Termination benefits 81,973 514,878

Total senior management personnel remuneration expenses 16,997,251 16,664,376

The total number of senior management personnel that are included in the above table are 69 individuals (2014: 65 individuals).

210 Australian Trade Commission Annual Report 2014–15 39 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 15: Financial Instruments

Note 15A: Fair Value of Financial Instruments

Carrying Fair Carrying Fair amount value amount value 2015 2015 2014 2014 $'000 $'000 $'000 $'000 Financial Assets Cash and cash equivalents 5,881 5,881 3,594 3,594 Receivables for goods and services 4,027 4,027 2,897 2,897 Total financial assets 9,908 9,908 6,491 6,491

Financial Liabilities Trade creditors 10,996 10,996 12,163 12,163 Other payables 6,249 6,249 5,176 5,176 Total financial liabilities 17,245 17,245 17,339 17,339

Part 04 / Financial statements 211 40 Australian Trade Commission Notes to and forming part of the financial statements

Note 15B: Credit Risk

The Commission's senior management has endorsed policies and procedures for debt management (including the provision of credit terms) to minimise the incidence of credit risk.

The Commission has no significant exposures to any concentrations of credit risk.

The Commission's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated at Note 15A.

Credit quality of financial assets not past due or individually determined as impaired Not past due Not past due Past due or Past due or nor impaired nor impaired impaired impaired 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Cash and cash equivalents 5,881 3,594 - - Receivables for goods and services 3,348 2,780 699 147 Total 9,229 6,374 699 147

Ageing of financial assets that were past due but not impaired in 2015 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Receivables for goods and services 290 84 162 143 679 Total 290 84 162 143 679

Ageing of financial assets that were past due but not impaired in 2014 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Receivables for goods and services 83 16 10 8 117 Total 83 16 10 8 117

212 Australian Trade Commission Annual Report 2014–15 41 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 15C: Liquidity Risk

The Commission undertakes cash forecasting to ensure it can meet its financial liabilities as they fall due.

Maturities for non-derivative financial liabilities in 2015 On within 1 between 1 between 2 more than demand year to 2 years to 5 years 5 years Total $'000 $'000 $'000 $'000 $'000 $'000

Trade creditors 10,996 - - - - 10,996 Other payables 5,980 62 55 47 105 6,249 Total 16,976 62 55 47 105 17,245

Maturities for non-derivative financial liabilities 2014 On within 1 between 1 between 2 more than demand year to 2 years to 5 years 5 years Total $'000 $'000 $'000 $'000 $'000 $'000

Trade creditors 12,163 - - - - 12,163 Other payables 5,004 80 47 35 10 5,176 Total 17,167 80 47 35 10 17,339

The Commission had no derivative financial liabilities in either 2015 or 2014.

Part 04 / Financial statements 213 42 Australian Trade Commission Notes to and forming part of the financial statements

Note 15D: Market Risk

Currency risk Currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Commission is exposed to foreign exchange currency risk primarily through undertaking certain transactions denominated in foreign currency. The Commission is exposed to foreign exchange risk for many currencies.

The following table details the effect on the net cost of services and equity as at 30 June from a 10.9% favourable/unfavourable change in the Australian dollar against all currencies with all other variables held constant.

Sensitivity analysis of the risk that the Commission is exposed to for 2015 Effect on Change in Net cost of Risk risk variable services Equity variable % $'000 $'000 Exposed Currency risk currencies + 10.9 526 526 Exposed Currency risk currencies - 10.9 (526) (526)

Sensitivity analysis of the risk that the Commission is exposed to for 2014 Effect on Change in Net cost of Risk risk variable services Equity variable % $'000 $'000 Exposed Currency risk currencies 11.5 654 654 Exposed Currency risk currencies (11.5) (654) (654)

The above amounts relate to the unrealised foreign exchange movements. Realised movements in foreign exchange are covered by adjustments to the Commission's appropriations.

The method used to arrive at the possible risk of 10.9% was based on both statistical and non-statistical analyses. The statistical analysis has been based on main currencies’ movements for the last five years. This information is then revised and adjusted for reasonableness under the current economic circumstances. The five main currencies the Commission has exposure to are US dollars, Euros, Chinese Renminbi, Japanese Yen and Indian Rupees.

Interest rate risk The Commission has no material exposure to interest rate risk.

Other price risk The Commission has no material exposure to other price risk.

214 Australian Trade Commission Annual Report 2014–15 43 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 16: Financial Assets Reconciliation

2015 2014 $'000 $'000

Total financial assets as per statement of financial position 53,555 46,702 Less: Non-financial instrument components Appropriations receivable (42,848) (39,570) Other receivables (799) (641) Total non-financial instrument components (43,647) (40,211) Total financial assets as per financial instruments note 9,908 6,491

Part 04 / Financial statements 215 44 Australian Trade Commission Notes to and forming part of the financial statements

Note 17: Administered Expenses 2015 2014 $'000 $'000

Note 17A: Employee Benefits Wages and salaries 4,575 4,502 Superannuation Defined contribution plans 201 190 Defined benefit plans 421 673 Fringe benefits tax 7 20 Other employee expenses 30 34 Total employee benefits 5,234 5,419

Note 17B: Suppliers Goods and services supplied or rendered Operating expenses 1,113 672 Total goods and services supplied or rendered 1,113 672

Services rendered in connection with External parties 1,113 672 Total services rendered 1,113 672 Total goods and services supplied or rendered 1,113 672

Other suppliers Operating lease rentals in connection with External parties Minimum lease payments 434 579 Total other suppliers 434 579 Total suppliers 1,547 1,251

Note 17C: Grants Private sector Export Market Development Grants 137,840 116,178 Asian Business Engagement Plan Grants 1,380 1,759 Total grants 139,220 117,937

216 Australian Trade Commission Annual Report 2014–15 45 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 18: Administered Financial Assets

2015 2014 $'000 $'000 Note 18A: Trade and Other Receivables Other receivables Other 106 96 GST receivable from the Australian Taxation Office 19 7 Total other receivables 125 103 Total trade and other receivables (gross) 125 103

Less impairment allowance Other (84) (84) Total impairment allowance (84) (84) Total trade and other receivables (net) 41 19

Trade and other receivables (net) expected to be recovered No more than 12 months 36 13 More than 12 months 5 6 Total trade and other receivables (net) 41 19

Trade and other receivables (gross) aged as follows Not overdue 36 7 Overdue by More than 90 days 89 96 Total trade and other receivables (gross) 125 103

Impairment allowance aged as follows Not overdue - - Overdue by More than 90 days 84 84 Total impairment allowance 84 84

Other receivables are with entities external to the Australian Government. Credit terms were within 30 days (2014: 30 days).

Part 04 / Financial statements 217 46 Australian Trade Commission Notes to and forming part of the financial statements

Note 18: Administered Financial Assets (continued)

Reconciliation of the Impairment Allowance Movements in relation to 2015 Other receivables Total $'000 $'000 As at 1 July 2014 84 84 Amounts recovered and reversed - - Total as at 30 June 2015 84 84

Movements in relation to 2014 Other receivables Total $'000 $'000 As at 1 July 2013 85 85 Amounts recovered and reversed (1) (1) Total as at 30 June 2014 84 84

218 Australian Trade Commission Annual Report 2014–15 47 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 19: Administered Payables 2015 2014 $'000 $'000 Note 19A: Suppliers Trade creditors and accruals 52 39 Other creditors - 5 Total suppliers 52 44

Suppliers expected to be settled No more than 12 months 43 32 More than 12 months 9 12 Total suppliers 52 44

Suppliers in connection with External parties 52 44 Total suppliers 52 44

Note 19B: Grants Private sector: ABE Plan grants payable 635 473 Total grants 635 473

Grants expected to be settled No more than 12 months 635 473 Total grants 635 473

Note 19C: Other Payables Salaries and wages 153 179 Total other payables 153 179

Other payables are expected to be settled No more than 12 months 153 179 Total other payables 153 179

Part 04 / Financial statements 219 48 Australian Trade Commission Notes to and forming part of the financial statements

Note 20: Administered Provisions

2015 2014 $'000 $'000 Note 20A: Employee Provisions Leave 1,882 1,709 Total employee provisions 1,882 1,709

Employee provisions are expected to be settled No more than 12 months 674 603 More than 12 months 1,208 1,106 Total employee provisions 1,882 1,709

Note 20B: Grants Provisions Provision for EMDG grants 6,066 8,996 Total grants provisions 6,066 8,996

Grant provisions expected to be settled No more than 12 months 6,066 8,996 Total grants provisions 6,066 8,996

Provision for grants Total $’000 $’000 As at 1 July 2014 8,996 8,996 Additional provisions made 5,211 5,211 Amounts used (8,141) (8,141) Total as at 30 June 2015 6,066 6,066

220 Australian Trade Commission Annual Report 2014–15 49 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 21: Administered Cash Flow Reconciliation 2015 2014 $'000 $'000 Reconciliation of cash and cash equivalents as per administered schedule of assets and liabilities to administered cash flow statement

Cash and cash equivalents as per Schedule of administered cash flows - - Schedule of administered assets and liabilities - - Discrepancy - -

Reconciliation of net cost of services to net cash from/(used) operating activities Net (cost of)/contribution by services (145,731) (124,235)

Movement in assets and liabilities Assets (Increase)/Decrease in net receivables (22) 25 Liabilities Increase/(Decrease) in employee provisions 173 (622) Increase/(Decrease) in supplier payables 8 (35) Increase/(Decrease) in grants payable 162 473 Increase/(Decrease) in other payables (26) 19 Increase/(Decrease) in grants provisions (2,930) 2,558 Net cash from/(used by) operating activities (148,366) (121,817)

Part 04 / Financial statements 221 50 Australian Trade Commission Notes to and forming part of the financial statements

Note 22: Administered Contingent Assets and Liabilities

Claims for damages or costs 2015 2014 $'000 $'000 Contingent liabilities Balance from previous period 883 2,558 New contingent liabilities recognised 1,755 2,132 Re-measurement 290 19 Liabilities realised (757) (1,796) Obligations expired (937) (2,030) Total contingent liabilities 1,234 883 Net contingent assets/(liabilities) 1,234 883

Quantifiable Administered Contingencies The above table contains $1.234m of contingent liabilities in respect to claims for damages or costs (2014: $0.883m). The amount represents an estimate of the Commission’s liability based on outstanding grants appeals.

Significant Remote Administered Contingencies The Commission had no significant remote administered contingencies.

Note 23: Administered Financial Instruments

Note 23A: Fair Value of Financial Instruments

Carrying Fair Carrying Fair amount value amount value 2015 2015 2014 2014 $'000 $'000 $'000 $'000 Financial Assets Cash - - - - Receivables 22 22 12 12 Total financial assets 22 22 12 12

Financial Liabilities Supplier and other payables 205 205 223 223 Grants payable and provisions 6,701 6,701 9,469 9,469 Total financial liabilities 6,906 6,906 9,692 9,692

There is no significant exposure to credit, liquidity or market risk.

222 Australian Trade Commission Annual Report 2014–15 51 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 24: Administered Financial Assets Reconciliation 2015 2014 $'000 $'000

Total financial assets as per schedule of administered assets and liabilities 41 19 Less: Non-financial instrument components Other receivables (19) (7) Total non-financial instrument components (19) (7) Total financial assets as per administered financial instruments note 22 12

Part 04 / Financial statements 223 52 53 - - - 4 (995) (995) $'000 The amount of of amount The Section 51 The The Administered determinations s. 3 995 995 $'000 11,619 10,624 10,624 (9,226) (9,226) Variance 505 505 $'000 205,371 204,866 204,866 148,626 148,626 or to be in made subsequent year movement of the of Minister.fundsby movement request a prior years) (current and Appropriation Appropriation applied in 2015 approval of of approval Total Total 1,500 $'000 216,990 215,490 215,490 139,400 139,400 appropriation - - - - - 75 Finance Minister’s Minister’s Finance $'000 Section - - - PGPA Act $'000 25,998 25,998 25,998 Section 74 - - - - - AFM $'000 1 1,500 1,500 $'000 Appropriation Act Annual Annual 190,992 189,492 189,492 139,400 139,400 Appropriation Appropriations departmental Equity items Administered Ordinary annual Ordinary services Other services annual Ordinary services Note 25A: Annual Appropriations ('Recoverable GST exclusive') ('Recoverable Appropriations 25A:Note Annual for 2015 Appropriations Annual Departmental Total items Administered administered Total Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements Note 25: quarantined. been have that no appropriations were there 2014-15, In 1. with accordance beenin the (in appropriations revenue not additionor formal had a law reduction of 3) Part 6 but at Div the FRR recognition criteria no that adjustment met was 2. 2014-15, In there period. reporting the of end the before amended attributed was to in $10.6m mainly made payments of cash prior variance for years supplementation3. 2014-15,received Departmental In the appropriations. priorfor attributed $9.2m from payments of year grants made cash was to mainly variance issued reduce appropriations todetermination the following was 2015, a equity June departmental 26 4. On $994,980. (No. 2) was Act under theAppropriation reduction

224 Australian Trade Commission Annual Report 2014–15 04

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226 Australian Trade Commission Annual Report 2014–15 046 5 tal i

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Part 04 / Financial statements 227 Australian Trade Commission Notes to and forming part of the financial statements

Note 25C: Unspent Annual Appropriations ('Recoverable GST exclusive')

2015 2014 $'000 $'000 Departmental Appropriation Act (No. 1) 2013-14 7,881 16,767 Appropriation Act (No. 1) 2013-14 - Capital Budget (DCB) - 4,460 Appropriation Act (No. 3) 2013-14 12,239 12,454 Appropriation Act (No. 5) 2013-14 626 626 Appropriation Act (No. 1) 2014-15 4,717 - Appropriation Act (No. 1) 2014-15 - Capital Budget (DCB) 4,021 - Appropriation Act (No. 3) 2014-15 6,592 - Appropriation Act (No. 3) 2014-15 - Capital Budget (DCB) 3,000 - Appropriation Act (No. 5) 2014-15 420 - Total departmental 39,496 34,307

Administered Appropriation Act (No. 1) 2012-13 - 2,300 Appropriation Act (No. 1) 2013-14 - 8,535 Appropriation Act (No. 3) 2013-14 - 14,840 Appropriation Act (No. 1) 2014-15 1,777 - Total administered 1,777 25,675

228 Australian Trade Commission Annual Report 2014–15 57 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 26: Special Accounts

Administered Payments and Services for Other Entities Receipts for Other Entities1 and Trust Moneys2 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Balance brought forward from previous period 100 100 947 - Increases Other receipts 10,217 10,224 696 1,233 Total increases 10,217 10,224 696 1,233 Available for payments 10,317 10,324 1,643 1,233 Decreases Departmental Payments made - - (620) (286) Total departmental - - (620) (286) Administered Payments made (10,217) (10,224) - - Balance returned to the Official Public Account - - - - Total administered (10,217) (10,224) - - Total decreases (10,217) (10,224) (620) (286) Total balance carried to the next period 100 100 1,023 947

1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.

Establishing Instrument: Financial Management and Accountability Determination 2006/15.

Purpose: To make payments overseas on behalf of other entities, and to make payments to other entities for amounts received overseas on their behalf.

Date of ceasing (sunsetting): 1 October 2016

2. Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.

Establishing Instrument: Financial Management and Accountability Determination 2008/05.

Purpose: To disburse amounts temporarily held on trust, and to disburse amounts in connection with services performed on behalf of other entities.

Date of ceasing (sunsetting): 1 October 2018

Note 27: Assets Held in Trust

The Commission had no assets held in trust in both the current and prior reporting periods.

Part 04 / Financial statements 229 58 59 2014 (372) $'000 214,775 314,773 124,607 124,607 (24,237) Total 2015 (270) $'000 224,276 146,001 146,001 343,722 (26,285) - - 2014 $'000 11,412 12,864 12,864 (1,452) Managers complete an annual survey of time time of complete ansurvey annual Managers - - Outcome 2 2015 $'000 13,187 13,187 11,642 (1,545) 2014 (372) $'000 consistent with the basis used for the Budget. for the basisused with consistent 303,361 201,911 201,911 124,607 (22,785) to each output. These costs are converted to percentages which are then used as then are usedwhich as percentages converted to costsare output. These each to ision of services. Business Unit services. of ision Outcome 1 2015 (270) $'000 211,089 211,089 146,001 332,080 (24,740) Reporting of Outcomes source income to allocate full costs (that is all direct and indirect costs) to each output. The basis of attribution in the table below is below table the attribution in basisof output. The each to costs) all indirect is direct and to costs(that full allocate - Expenses Own Expenses Income As the Commission is a services organisation its outputs are directly related to the time its service staff spendprov staff itsservice the on related time to the directly theorganisation itsare outputs Commission services a is As attributable costsdirectly at arrive to the Business Units operating of the cost with crossed then is which outputs spent on drivers 28A:Outcome of Delivery Note Cost Net Departmental Administered Net cost of outcome delivery Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements Note 28:

230 Australian Trade Commission Annual Report 2014–15 04 12 43 85 60 666 326 2014 $'000 2,851 3,594 7,913 5,176 2,342 71,345 18,068 20,975 43,108 14,346 19,064 22,586 12,218 33,358 53,094 124,641 214,775 176,760 200,997 110,611 - Total 49 75 257 2015 1,088 3,040 5,881 7,769 6,249 1,395 $'000 74,642 19,203 22,913 47,674 13,382 18,084 21,735 11,077 32,890 51,611 129,294 224,276 182,483 208,768 114,525 1 3 5 40 20 171 171 215 859 474 732 310 140 2014 $'000 6,625 3,180 7,465 7,465 4,273 1,082 1,256 2,582 1,142 1,353 1,998 12,864 12,038 10,586 10,586 1 - 3 4 64 15 82 179 179 346 787 457 651 367 Outcome 2 2015 6,734 3,034 7,602 7,602 4,389 1,129 1,347 2,803 1,063 1,278 1,934 $'000 13,187 12,275 10,730 10,730 11 40 80 626 626 306 2014 $'000 2,680 2,680 3,379 7,439 4,866 2,202 49,914 67,072 67,072 16,986 19,719 40,526 13,487 17,922 21,233 11,486 31,360 201,911 188,959 103,986 117,176 117,176 166,174 1 - 46 71 242 242 Outcome 1 2015 1,024 1,024 2,861 5,535 7,312 5,882 1,313 $'000 48,577 70,253 70,253 18,074 21,566 44,871 12,595 17,021 20,457 10,426 30,956 211,089 196,493 107,791 121,692 121,692 171,753 Expenses, Income, Assets and Liabilities Outcome andby AssetsLiabilities Income, Expenses, losses financial assets financial - source income - down and impairment of assets of impairment and down - source income - Employee benefits Suppliers Depreciation amortisation and Write sales asset from Losses Foreign exchange government from Revenue services of goods rendering of Sale and Rental income Other revenue Other gains andCash equivalents cash Trade and other receivables buildings and Land equipment and plant Property, Intangibles Other non Suppliers Other payables provisionsEmployee Other provisions Note 28B: Major Classes of Departmental Departmental of Classes Major 28B: Note Expenses Total expenses Own ownTotal Assets assets Total Liabilities liabilities Total Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements and 1outcome. Resourcingto Table Budget Outcome the include intra-governmentactual Refer eliminated in are costsshown 1.1. calculating Net coststhat described1 Note in and are 1. 2 Outcomes thisof Annual 2Report. Resourcing Table Outcome

Part 04 / Financial statements 231 61 - 19 19 44 372 372 473 179 2014 $'000 5,419 1,251 1,709 8,996 11,401 117,937 124,607 - Total 41 41 52 270 270 635 153 2015 5,234 1,547 1,882 6,066 8,788 $'000 139,220 146,001 ------2014 $'000 1 ------Outcome 2 2015 $'000 - 19 19 44 372 372 372 473 179 2014 $'000 5,419 5,419 1,251 1,709 8,996 11,401 124,607 117,937 117,937 1 - 41 41 52 270 270 270 635 153 Outcome 1 2015 8,788 5,234 5,234 1,547 1,882 6,066 $'000 146,001 139,220 139,220 sses of Administered Expenses, Income, Assets, and Liabilities by Outcomeby Liabilities Assets, and Income, Administered Expenses, ssesof Employee benefits Suppliers Grants Other revenue andCash equivalents cash Trade and other receivables Suppliers Grants Other payables provisionsEmployee provisionsGrants Note 28C: Major Cla Major 28C: Note Expenses Total expenses Income income Total Assets assets Total Liabilities liabilities Total Australian Trade Commission Commission Australian Trade of part to and the financial forming Notes statements and 1outcome. to Resourcing Table Budget Outcome the actual Refer eliminated inare calculating include coststhat1 described in costsshown and1.1. are Net intra-government 2 Note1. Outcomes thisof Annual 2Report. Resourcing Table Outcome

232 Australian Trade Commission Annual Report 2014–15 04

Australian Trade Commission Notes to and forming part of the financial statements

Note 29: Budgetary Reports and Explanations of Major Variances

The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for the Commission. The Budget is not audited.

Variances are considered to be ‘major’ based on the following criteria:  the variance between budget and actual is greater than 10%; and  the variance between budget and actual is greater than 2% of total expenses; or  the variance between budget and actual is below this threshold but is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of the Commission.

In some instances, a budget has not been provided for in the PBS, for example non-cash items such as asset revaluations, foreign exchange and sale of asset adjustments. Unless the variance is considered to be ‘major’ no explanation has been provided.

Part 04 / Financial statements 233 62 Australian Trade Commission Notes to and forming part of the financial statements

Note 29A: Departmental Budgetary Reports

Statement of Comprehensive Income for the period ended 30 June 2015

Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 NET COST OF SERVICES Expenses Employee benefits 129,294 119,040 10,254 Suppliers 74,642 83,440 (8,798) Depreciation and amortisation 19,203 17,500 1,703 Write-down and impairment of assets - - - Losses from asset sales 49 (250) 299 Foreign exchange losses 1,088 - 1,088 Total expenses 224,276 219,730 4,546

Own-Source Income Own-source revenue Sale of goods and rendering of services 22,913 17,592 5,321 Rental income 75 500 (425) Other revenue 3,040 1,500 1,540 Total own-source revenue 26,028 19,592 6,436

Gains Other gains 257 158 99 Total gains 257 158 99 Total own-source income 26,285 19,750 6,535

Net cost of services 197,991 199,980 (1,989)

Revenue from Government 182,483 182,480 3

Deficit attributable to the Australian Government (15,508) (17,500) 1,992

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Change in asset revaluation surplus 304 - 304 Total other comprehensive income/(loss) 304 - 304 Total comprehensive income/(loss) attributable to the Australian Government (15,204) (17,500) 2,296

1. The Commission's original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the Commission's 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

234 Australian Trade Commission Annual Report 2014–15 63 04

Australian Trade Commission Notes to and forming part of the financial statements

Statement of Financial Position as at 30 June 2015

Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 5,881 5,500 381 Trade and other receivables 47,674 53,729 (6,055) Total financial assets 53,555 59,229 (5,674)

Non-financial assets Land and buildings 13,382 11,780 1,602 Property, plant and equipment 18,084 22,084 (4,000) Intangibles 21,735 17,075 4,660 Other non-financial assets 7,769 7,176 593 Total non-financial assets 60,970 58,115 2,855

Total assets 114,525 117,344 (2,819)

LIABILITIES Payables Suppliers 11,077 14,808 (3,731) Other payables 6,249 4,382 1,867 Total payables 17,326 19,190 (1,864)

Provisions Employee provisions 32,890 35,378 (2,488) Other provisions 1,395 3,786 (2,391) Total provisions 34,285 39,164 (4,879)

Total liabilities 51,611 58,354 (6,743)

Net assets 62,914 58,990 3,924

EQUITY Contributed equity 87,302 89,379 (2,077) Reserves 66,319 66,318 1 Retained surplus/(Accumulated deficit) (90,707) (96,707) 6,000 Total equity 62,914 58,990 3,924

Part 04 / Financial statements 235 64 ) ) ) 2 - - 5 2 4 0 4 4 0 e 6 6 4 1 9 1 0 1 2 0 c 8 8 0 96 ) 0 9 8 0 8 9 0 ' , , , , , 5 1 e 2 , ( 6 ( 6 ( 2 $ t 1 1 3 4 3 6 a ria n ( 2 a m V ts st i n e e t ) ) - - 0 5 3 3 7 7 0 0 0 1 e m 0 0 0 0 8 8 9 1 0 0 0 0 0 0 2 2 2 7 9 5 5 , , , , , , , ' 0 qu ity 5 0 2 , , i na l 8 8 4 5 8 2 1 tat e e $ ud g 7 5 5 5 1 1 5 l S i g B t r ( 1 ( 1 t a e O g d T o ) ) - - 0 5 7 7 7 1 4 4 8 4 1 1 8 0 1 1 0 1 0 0 B u l 0 5 5 2 6 9 3 30 4

, , , , , , ' 0 5 2 a 2 , , o 7 7 7 0 2 3 $ 5 5 l i 5 5 1 2 6 t u o ( 1 ( 1 A c rt f o P

2 - - - - 5 4 0 4 0 5 e 1 1 0 1 0 1 c l 91 ) 91 ) 77 ) e 0 8 0 8 0 - ' , , , t 8 8 0 2 4 , , , $ 1 3 4 a it a ria n ( 6 ( 6 ( 2 p 0 1 m a V st i s 2 /c a '

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p l l r l r n er s i o n )) . t w a e i t e n u e 5 si n t e e v j n m p t a t a h u S la n a t u str u r p r t h p B e t a u T r e un e w B . . S f o 20 1 O B a p A d C o S Ot h T o T r Dist r R e R e C on t E q D e T o o Cl o J ( P 2 Aust 1 No t

236 Australian Trade Commission Annual Report 2014–15 04

Australian Trade Commission Notes to and forming part of the financial statements

Cash Flow Statement for the period ended 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000

OPERATING ACTIVITIES Cash received Appropriations 181,766 182,480 (714) Sales of goods and rendering services 23,037 18,092 4,945 Net GST received 3,731 5,714 (1,983) Other 2,781 1,500 1,281 Total cash received 211,315 207,786 3,529

Cash used Employees 129,599 119,040 10,559 Suppliers 78,998 88,996 (9,998) Total cash used 208,597 208,036 561 Net cash from/(used by) operating activities 2,718 (250) 2,968

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 180 250 (70) Total cash received 180 250 (70)

Cash used Purchase of property, plant and equipment 18,651 15,787 2,864 Total cash used 18,651 15,787 2,864 Net cash from/(used by) investing activities (18,471) (15,537) (2,934)

FINANCING ACTIVITIES Cash received Contributed equity 18,040 15,787 2,253 Total cash received 18,040 15,787 2,253

Net cash from/(used by) financing activities 18,040 15,787 2,253

Net increase/(decrease) in cash held 2,287 - 2,287 Cash and cash equivalents at the beginning of the reporting period 3,594 5,500 (1,906) Cash and cash equivalents at the end of the reporting period 5,881 5,500 381

Part 04 / Financial statements 237 66 Australian Trade Commission Notes to and forming part of the financial statements

Note 29B: Departmental Major Budget Variances for 2015

Explanations of major variances Affected line items (and statement) Suppliers/Intangibles The variation of supplier expenditure with the original Supplier expenses (Statement of Comprehensive Income), budget mainly relates to the classification of Tourism Operating cash used - suppliers (Cash Flow Statement), research costs as an intangible asset, whereas the budget Intangibles(Statement of Financial Position) anticipated inclusion of these costs within supplier expenses. Formal consideration of this accounting treatment occurred after the budget had been prepared and therefore this change was not reflected in the original budget.

Employees/Suppliers In addition to the above, the allocation of operating budget Employee benefits expense (Statement of Comprehensive between employee and supplier expenditure varies from the Income), Operating cash used - employees (Cash Flow original budget because funding has been redirected from Statement), Supplier expenses (Statement of Comprehensive supplier to employee expenditure to maintain the Income), Operating cash used - suppliers (Cash Flow Commission's personnel resourcing requirements. Statement)

Sales of goods and rendering of services Total revenue from sales of goods and rendering of services Sale of goods and rendering of services revenue (Statement was greater than original budget, mainly due to $3.6m in of Comprehensive Income), Operating cash received - sale revenue received from Tourism research activities. The of goods and rendering of services (Cash Flow Statement) Commission assumed responsibility for these activities as a result of administrative orders made in October 2013, however this income was not included in the original budget. In addition, the Commission incurs expenditure on behalf of other Commonwealth entities and in turn, fully recovers these costs. This cost recovery revenue was $2.0m greater than the original budget; noting that, this expenditure and the corresponding recoveries are outside the control of the Commission.

Trade and other receivables Total trade and other receivables was less than original Trade and other receivables (Statement of Financial budget, mainly as a result of a decrease in appropriations Position) receivable following reductions in unspent prior year appropriations. $4.8m in prior year equity appropriations was repealed by the Statute Stocktake (Appropriations) Act 2013 in July 2013 and this reduction was not reflected in the original budget.

Property, plant and equipment The application of the Commission's Departmental Capital Property, plant and equipment (Statement of Financial Budget against Tourism intangible assets as described Position) above has resulted in lower funding being available for other asset purchases, which has also resulted in property, plant and equipment balances being lower than the original budget.

238 Australian Trade Commission Annual Report 2014–15 67 04

Australian Trade Commission Notes to and forming part of the financial statements

Contributions by owners Contributions by owners were greater than original budget, Contributions by owners (Statement of Changes in Equity) mainly as a result of a $3.0 million reallocation of funds from the operating budget to the capital budget at Additional Estimates 2014-15. In addition, the Commission received $2.8m in equity funding for employee liabilities assumed as a result of administrative orders made in October 2013. This was not included in the original budget.

Part 04 / Financial statements 239 68 Australian Trade Commission Notes to and forming part of the financial statements

Note 29C: Administered Budgetary Reports

Administered Schedule of Comprehensive Income for the period ended 30 June 2015

Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 NET COST OF SERVICES Expenses Employee benefits 5,234 5,465 (231) Suppliers 1,547 1,430 117 Grants 139,220 132,505 6,715 Total expenses 146,001 139,400 6,601

Income Revenue Non-taxation revenue Other revenue 270 - 270 Total non-taxation revenue 270 - 270 Total revenue 270 - 270 Total income 270 - 270 Net (cost of)/contribution by services (145,731) (139,400) (6,331) Deficit attributable to the Australian Government (145,731) (139,400) (6,331)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Other comprehensive income - - - Total other comprehensive income - - - Total comprehensive income/(loss) (145,731) (139,400) (6,331)

240 Australian Trade Commission Annual Report 2014–15 69 04

Australian Trade Commission Notes to and forming part of the financial statements

Administered Schedule of Assets and Liabilities as at 30 June 2015

Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents - - - Trade and other receivables 41 90 (49) Total financial assets 41 90 (49)

Total assets administered on behalf of Government 41 90 (49)

LIABILITIES Payables Suppliers 52 79 (27) Grants 635 160 475 Other payables 153 - 153 Total payables 840 239 601

Provisions Employee provisions 1,882 2,331 (449) Grants provisions 6,066 6,438 (372) Total provisions 7,948 8,769 (821)

Total liabilities administered on behalf of Government 8,788 9,008 (220)

Net assets/(liabilities) (8,747) (8,918) 171

Part 04 / Financial statements 241 70 Australian Trade Commission Notes to and forming part of the financial statements

Note 29D: Administered Major Budget Variances for 2015

Explanations of major variances Affected line items (and schedule) Grants The calculation of the payout factor for EMDG is Grants expense (Administered Schedule of Comprehensive prescribed in the Export Market Development Grants Income) Regulations 2008. In years where there is strong demand for the scheme, as in 2015, it is possible for overspends to occur against the original budget. The overspend is due to the nature of this calculation and provisions recognised for likely payments arising from grants claims and appeals lodged but not yet finalised (2015: $6.066m).

242 Australian Trade Commission Annual Report 2014–15 71 05 PART APPENDIXES

A Austrade and TradeStart locations in Australia, and TradeStart partners 244

B Austrade’s Service Charter 246

C Work health and safety 248

D Financial and staffing resources 250

E Ecologically sustainable development and environmental performance 253

F Advertising and market research 256

G List of requirements 262 Appendix A

Austrade and TradeStart locations in Australia, and TradeStart partners

Figure A1: Austrade’s national network, including TradeStart, at 30 June 2015

Darwin

Cairns NORTHERN TERRITORY Townsville

Mackay QUEENSLAND WESTERN AUSTRALIA Rockhampton

Sunshine Coast

Toowoomba Brisbane SOUTH AUSTRALIA Gold Coast NEW SOUTH WALES Tamworth Port Macquarie Port Augusta Perth Riverland Newcastle Orange Gosford Bunbury Sydney Miranda Wagga Wagga Wollongong Canberra Nowra Adelaide VICTORIA Mt Gambier ACT Albury–Wodonga Melbourne Geelong

Austrade Location TradeStart Location TASMANIA Hobart

244 Australian Trade Commission Annual Report 2014–15 05

Table A1: TradeStart locations and partners at 30 June 2015

Office location Partner name New South Wales(a) and ACT Sydney South and South West NSW Business Chamber Port Macquarie NSW Trade & Investment Gosford NSW Trade & Investment Nowra NSW Trade & Investment Wagga Wagga NSW Trade & Investment Orange NSW Trade & Investment Tamworth NSW Trade & Investment Canberra Canberra Business Chamber Victoria Melbourne South and South East Australian Industry Group Albury Australian Industry Group Geelong Under negotiation Queensland Brisbane Australian Industry Group Gold Coast Gold Coast City Council Rockhampton Trade & Investment Queensland Mackay Trade & Investment Queensland Cairns Trade & Investment Queensland Townsville Trade & Investment Queensland Maroochydore Trade & Investment Queensland Toowoomba Trade & Investment Queensland Western Australia Bunbury South West Development Commission Perth Chamber of Commerce & Industry of WA South Australia Adelaide SA Department of State Development Mt Gambier SA Department of State Development Port Augusta SA Department of State Development Berri SA Department of State Development Tasmania Hobart Tasmanian Chamber of Commerce & Industry Northern Territory Darwin Chamber of Commerce NT

(a) In 2015–16, the TradeStart contract with NSW Trade & Investment will be transferred to the NSW Department of Premier and Cabinet.

Part 05 / Appendixes. Appendix A: Austrade and TradeStart locations in Australia, and TradeStart partners 245 Appendix B

Austrade’s Service Charter Austrade’s Service Charter sets out the level of Grants (EMDG) scheme, and will provide service you can expect from Austrade. advice regarding your eligibility and the application and assessment process. We Our service values will process your application promptly and efficiently in accordance with the Austrade will endeavour to: EMDG legislation. ›› provide information and insight based on our ›› If Austrade is unable to assist with your experience and networks in Australia and request, we will endeavour to refer you to around the world appropriate service providers that may be ›› be professional when assisting better able to address your enquiry. your organisation ›› In line with Australia’s anti-bribery laws, we ›› be flexible and responsive to meet your will not provide business-related services to particular business needs. any party that we are aware has breached laws prohibiting bribery and related behaviour. Our service standards for Australian We will also report credible evidence of any exporters and education providers breach to the relevant authorities. ›› We will clearly explain our service offerings as they apply to your business needs. Our service standards for international ›› We will explain any fees associated with our organisations seeking to invest in Australia or services and provide you with a written quote buy products or services from Australia before commencing work on your behalf. ›› We will endeavour to introduce you to Australian business connections that can help ›› If you contact us, we will respond within you achieve your goals. two working days of receiving your enquiry. If your enquiry is complex and we cannot ›› We will clearly explain the opportunities respond immediately, we will inform you of our and sources of assistance that may be progress and work towards an agreed set of available to you within Austrade and from goals and deadlines. other organisations. ›› We will maintain your confidentiality in ›› If you contact us, we will respond within accordance with the Australian Government’s two working days of receiving your enquiry. legal and regulatory requirements, as well as If your enquiry is complex and we cannot government policies regarding the disclosure respond immediately, we will inform you of our of information to Parliament and the progress and work towards an agreed set of Australian Government. goals and deadlines. ›› We will endeavour to connect your ›› We will maintain your confidentiality in organisation with high-potential international accordance with the Australian Government’s business opportunities. legal and regulatory requirements, as well as government policies regarding the disclosure ›› We will provide you with clear information of information to Parliament and the about Austrade’s Export Market Development Australian Government.

246 Australian Trade Commission Annual Report 2014–15 05

›› To assist you with your business needs, Measuring our performance Austrade may provide your information to From time to time, Austrade may seek your other Australian Government departments and feedback directly or through a satisfaction Australian state and territory governments. survey. Your feedback helps us to improve our ›› If Austrade is unable to assist with your service delivery in Australia and overseas, and to request, we will endeavour to refer you to identify issues that are important to you. appropriate service providers that may be better able to address your enquiry. We welcome your feedback at all times. Simply call us, write to us or send us an email. If you ›› In line with Australia’s anti-bribery laws, we have a problem you need resolved, please raise will not provide business-related services to it directly with an Austrade staff member or write any party that we are aware has breached to the Austrade Services Manager. laws prohibiting bribery and related behaviour. We will also report credible evidence of any If at any stage you are dissatisfied with how we breach to the relevant authorities. are handling or have handled a complaint, you may contact an office of the Commonwealth Austrade’s multicultural plan Ombudsman and/or the Privacy Commissioner.

Under the Australian Government’s multicultural access and equity policy, government programmes and services should be accessible by all eligible Australians, respond to their needs, and deliver equitable outcomes for them regardless of their cultural or linguistic background.

Austrade is committed to ensuring that Australia’s culturally and linguistically diverse exporters are aware of our services and programmes, and have the potential to access our services.

Our 2013–2015 plan for implementing this vision is available on the Austrade website, www.austrade.gov.au.

Part 05 / Appendixes. Appendix B: Austrade’s Service Charter 247 Appendix C

Work health and safety In accordance with Schedule 2, Part 4 of the ›› a briefing for the CEO, the Executive and Work Health and Safety Act 2011 (WHS Act), Senior Executive Service staff, facilitated by Austrade is required to provide details of the an external legal practitioner in WHS, to report following matters in its annual report: on recent developments in WHS ›› initiatives taken during the year to ensure the ›› workshops for senior Austrade staff offshore health, safety and welfare at work of workers to explain their duties under the WHS Act who carry out work for the entity in relation to WHS due diligence and the ›› health and safety outcomes (including the practical steps they must take to promote impact on injury rates of workers) achieved as safety at work, at events and while travelling a result of the initiatives taken during the year ›› a workshop for internationally based human or previous initiatives resource and finance managers to explain ›› statistics of any notifiable incidents of which their role in promoting safety the entity becomes aware during the year that ›› provision of a new WHS training module for arose out of the conduct of undertakings by staff aimed at recognising their current WHS the entity knowledge and delivering tailored modules ›› any investigations conducted during the year to address identified knowledge gaps. The that relate to businesses or undertakings, training was delivered to 1,138 staff including details of all notices given to the ›› continuation of the twice-yearly online entity during the year under Part 10 of the Act compliance reporting tool for each Austrade ›› such other matters required by guidelines office to ensure the health and safety features approved on behalf of the Parliament by provided are maintained and serviced, the Joint Committee of Public Accounts hazards and risks are eliminated or managed, and Audit. and legislative compliance is met where reasonably practicable Austrade seeks at all times to provide a safe › creation of online information resources to and healthy working environment for employees › help workers understand their responsibilities and others in Austrade workplaces. Austrade under the WHS Act employees have access to work health and safety (WHS) information from Austrade’s Work ›› refinement of online incident notification and Health and Safety Manager, Workplace Support reporting processes to aid compliance with Adviser, global human resource managers, and the WHS Act through the Austrade intranet. ›› delivery of WHS manuals for all major Austrade offices to enable them to better Specific WHS initiatives and programmes manage their regional safety obligations, conducted in 2014–15 included: while ensuring smaller offshore offices remain › continuation of the twice-yearly global WHS › engaged with the Austrade safety culture forum, where staff provided feedback and › voluntary free health checks and influenza suggestions for improvements to the agency’s › vaccinations for Australia-based staff. safety management system

248 Australian Trade Commission Annual Report 2014–15 05

The WHS Act requires Austrade to report all notifiable incidents to Comcare. During 2014–15, there were no notifiable incidents to report. Table C1 provides an overview of workplace incidents notified under health and safety legislation for the past three years.

Table C1: Workplace incidents notified by Austrade under health and safety legislation, 2012–13 to 2014–15

2012–13 2013–14 2014–15 Notifications 2 3 0 Incidents 0 0 1 investigated by Comcare

Comcare commenced an investigation into an allegation of workplace stress by an attached agency employee within Austrade’s international network. Austrade is cooperating closely with Comcare on this matter and the investigation is ongoing.

In March 2014, Austrade’s WHS management system was independently audited. The findings demonstrated that Austrade has a comprehensive, integrated WHS management system that continues to drive a safety culture across its global network. The next scheduled independent audit of the WHS management system will be in 2016.

Part 05 / Appendixes. Appendix C: Work health and safety 249 Appendix D

Financial and staffing resources

Table D1: Agency resource statement, 2014–15

Actual Balance available Payments remaining appropriation made 2014–15 for 2014–15 2014–15 $’000 $’000 (A) $’000 (B) (A–B)

Ordinary annual services(a)

Departmental appropriation(b) Prior-year departmental appropriation 37,801 11,274 26,527 Departmental appropriation 206,779 188,029 18,750 Section 74 retained revenue receipts(c) 25,998 25,998 – Total 270,578 225,301 45,277 Administered expenses Outcome 1 150,536 148,759 1,777 Total 150,536 148,759 1,777 Total ordinary annual services (A) 421,114 374,060 47,054 Other services Departmental non-operating

(d) Equity injections 505 505 – Total 505 505 – Total other services (B) 505 505 – Total available annual appropriations and payments 421,619 374,565 47,054 Total resourcing and payments (A+B) 421,619 374,565 47,054 Total net resourcing and payments for Austrade 421,619 374,565 47,054

(a) Appropriation Act (No. 1) 2014–15, Appropriation Act (No. 3) 2014–15 and Appropriation Act (No. 5) 2014–15. This also includes prior-year departmental appropriation and section 74 retained revenue receipts.

(b) Includes an amount of $17.3 million in 2014–15 for the departmental capital budget. For accounting purposes, this amount has been designated as ‘contributions by owners’.

(d) Appropriation Act (No. 2) 2014–15. This may also include prior year-appropriation.

250 Australian Trade Commission Annual Report 2014–15 05

Table D2: Expenses for outcomes, 2014–15

Expenses for outcome 1

Outcome 1: Contribute to Australia’s economic prosperity by promoting Australia’s export and other international Actual economic interests through the provision of information, Budget(a) expenses Variation advice and services to business, associations, 2014–15 2014–15 2014–15 institutions and government $’000 $’000 $’000

Programme 1.1: Promotion of Australia’s export and other international economic interests Departmental expenses Departmental appropriation(b) 187,003 192,855 5,852 Expenses not requiring appropriation in the budget year 17,500 18,234 734

Total for programme 1.1 204,503 211,089 6,586 Programme 1.2: Programmes to promote Australia’s exports and other international economic interests Administered expenses Ordinary annual services (Appropriation Act nos. 1, 3 and 5) 139,400 146,001 6,601

Total for programme 1.2 139,400 146,001 6,601 Outcome 1 totals by appropriation type Administered expenses Ordinary annual services (Appropriation Act nos. 1, 3 and 5) 139,400 146,001 6,601 Departmental expenses Ordinary annual services (Appropriation Act nos. 1, 3 and 5) 187,003 192,855 5,852 Expenses not requiring appropriation in the budget year 17,500 18,234 734 Total expenses for outcome 1 343,903 357,090 13,187 Average staffing level (number) 957 972 15

(a) Full-year budget, including any subsequent adjustment made to the 2014–15 Budget at Additional Estimates.

(b) Departmental appropriation combines ordinary annual services (Appropriation Act nos. 1, 3 and 5) and retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

Part 05 / Appendixes. Appendix D: Financial and staffing resources 251 Table D2: Expenses for outcomes, 2014–15 (continued)

Expenses for outcome 2

Actual Outcome 2: The protection and welfare of Australians Budget(a) expenses Variation abroad through timely and responsive consular and 2014–15 2014–15 2014–15 passport services in specific locations overseas $’000 $’000 $’000

Programme 2.1: Consular and passport services Departmental expenses Departmental appropriation(b) 12,818 12,058 (760) Expenses not requiring appropriation in the budget year – 1,129 1,129

Total for programme 2.1 12,818 13,187 369 Outcome 2 totals by appropriation type Departmental expenses Ordinary annual services (Appropriation Act nos. 1, 3 and 5) 12,818 12,058 (760) Expenses not requiring appropriation in the budget year – 1,129 1,129 Total expenses for outcome 2 12,818 13,187 369 Average staffing level (number) 39 41 2

(a) Full-year budget, including any subsequent adjustment made to the 2014–15 Budget at Additional Estimates.

252 Australian Trade Commission Annual Report 2014–15 Appendix E 05

Ecologically sustainable development and environmental performance This appendix summarises Austrade’s Software, Workstation and Portability performance with respect to the requirements of Programme 2015 section 516A of the Environment Protection and As well as providing a significant uplift in Biodiversity Conservation Act 1999. capability to end users, Austrade’s Software, Workstation and Portability Programme 2015 Energy consumption (SWAPP2015) has seen a fleet of energy-efficient Austrade reported energy consumption in devices deployed in the agency. The central its Australian operations as required by the processing unit thermal power draw has been Energy Efficiency in Government Operations reduced by almost 60 per cent, with a reduction Policy. The Energy use in the Australian from 35 watts in the old fleet to 15 watts in the Government’s operations report 2007–08, new SWAPP2015 devices. For more information released in December 2009, outlines the levels on SWAPP2015, see page 166. of energy usage and emissions for the Australian Government, at both whole-of-government and Videoconferencing individual agency levels. Austrade’s global videoconferencing facilities During 2014–15, Austrade’s energy consumption provide significant energy efficiencies increased slightly on the previous year, with through reduced travel for Austrade staff, total electrical energy consumption (as a and for staff of other government agencies tenant) at 864,980 kilowatt hours, a reduction who are authorised to use the facilities. In of 193,730 kilowatt hours on the 2009–10 2014–15, Austrade performed approximately baseline data. Table E1 shows Austrade’s energy 38,000 videoconferences with approximately consumption for the last six years, and the 41,000 hours of calls from 103 end points. amount this has decreased from the 2009–10 baseline measurement.

Table E1: Austrade’s energy consumption, 2009–10 to 2014–15

Total electrical energy consumption Reduction of kilowatt hours from Reporting year (kilowatt hours) 2009–10 baseline 2009–10 1,058,710 – 2010–11 957,820 100,890 2011–12 943,675 115,035 2012–13 817,705 241,005 2013–14 775,732 282,978 2014–15 864,980 193,730

Part 05 / Appendixes. Appendix E: Ecologically sustainable development and environmental performance 253 Earth Hour Water

Austrade provided staff with advice on how Water consumption is difficult for Austrade they could participate in Earth Hour 2015, to measure on a broad scale as most of its both personally and through office activity, tenancies are not separately metered for water and coordinated the participation of Austrade consumption. Austrade’s facility and property offices across Australia and overseas. Where managers continue to work with building owners, practicable, six national and 21 international where possible, to improve water consumption Austrade offices switched off lights, printers and introduce water-saving measures, such and photocopiers for the weekend of as waterless urinals, dual-flush toilets and flow 28–29 March 2015. restrictors on taps.

Waste Principles of ecologically sustainable development Austrade continued to manage and review approaches for minimising its environmental Austrade operates under the Australian Trade impact through established practices across Commission Act 1985 and administers the Australia and overseas. These practices Export Market Development Grants scheme included reducing waste by establishing pursuant to the Export Market Development recycling systems for a range of office Grants Act 1997. While neither Act makes supplies, consumables and general waste from specific reference to ecologically sustainable workspaces and staff kitchens. development or sustainability principles, Austrade continues to adhere to government policy and ministerial directives on sustainability. Table E2 provides five-year trend information on Austrade’s energy efficiency performance.

254 Australian Trade Commission Annual Report 2014–15 05

Table E2: Energy efficiency performance, 2010–11 to 2014–15

Performance measure Indicator 2010–11 2011–12 2012–13 2013–14 2014–15

Total consumption Amount of 2,293,430 2,199,260 2,121,797 2,129,455 1,655,767 of energy—includes electricity consumed all energy consumed (kWh) when undertaking the functions of the Amount of gas Not Not Not Not Not agency, such as consumed available available available available available energy consumed for Amount of other 5,048 8,217 6,820 8,688 5,171 office buildings and fuels consumed (a) transportation (litres of petrol)

Total consumption of Amount of 128,150 119,571 114,620 121,329 Not applicable— green energy—includes green energy computer centres consumed are now located off the purchase of energy (kWh) site under whole- from sustainable of-government sources arrangements

Relative energy uses— Proportion of Green energy purchased for 10 per cent of Canberra computer includes green energy green energy centre usage each year from 2009–10 to 2013–14; computer centres in total energy located off site from 2014–15 use relative to non- consumption renewable energy use and energy use per Amount of Not Not Not Not Not employee total energy available available available available available consumed per employee kWh = kilowatt hours

(a) Estimate based on calculating kilometres travelled multiplied by fuel consumption rating.

Note: Due to Austrade being a tenant, some of the performance indicators listed on www.environment.gov.au/esd in relation to waste and water are not directly measured, so they have not been included in the table. Austrade works with building managers to ensure environmental initiatives are in place where possible. Austrade recycles waste paper, and encourages the use of recycled paper.

Part 05 / Appendixes. Appendix E: Ecologically sustainable development and environmental performance 255 Appendix F

Advertising and market research For the 2014–15 financial year, particulars of Table F1 shows total advertising and market payments of more than $12,565 (inclusive research expenditure for the year. Tables F2, of GST) for advertising and market research F3, and F4 show individual payments in each services must be reported. As required under category that were more than the $12,565 section 311A of the Commonwealth Electoral threshold. All amounts are reported at budget Act 1918, below and on the following pages exchange rates and some totals may not add up are details of organisations contracted by due to rounding. Austrade to provide advertising and market During 2014–15, Austrade did not make any research services. payments to polling organisations and did not conduct any advertising campaigns.

Table F1: Total advertising and market research expenditure by category, 2014–15

Category Value ($) Advertising agencies 940.50 Market research organisations 7,850,326.80 Polling organisations Nil Direct mail organisations 124,257.42 Media advertising organisations 427,819.22 Total 8,403,343.95

256 Australian Trade Commission Annual Report 2014–15 05

Table F2: Individual payments of more than $12,565 to media advertising organisations, 2014–15

Organisation Description Amount ($) Mitchell & Partners Australia 2015 review of the Export Market Development 16,187.29 Grants scheme – advertising Ho-Yuan Marketing Co. Ltd Australia: Future Unlimited education exhibition 42,928.40 advertising (Taiwan) Cong ty TNHH Do Phan Giai Australia: Future Unlimited education exhibition 15,723.00 Cao advertising (Vietnam) Mitchell & Partners Australia Australia Unlimited LinkedIn advertising 17,490.00 Mitchell & Partners Australia Australia Business Week in India 2015 advertising 49,498.90 (digital display) Kyowa Agency Australia: Future Unlimited education exhibition 36,085.56 advertising (Tokyo) Mitchell & Partners Australia Job recruitment advertisement – Senior Trade 13,499.97 Commissioner roles Mitchell & Partners Australia Job recruitment advertisement – Senior Trade 13,109.48 Commissioner, Houston Total 204,522.60

Table F3: Individual payments of more than $12,565 to direct mail organisations, 2014–15

Organisation Description Amount ($) Teradata Australia Email subscription pages 15,881.25 Teradata Australia Maintenance, hosting and reporting 14,245.00 Total 30,126.25

Part 05 / Appendixes. Appendix F: Advertising and market research 257 Table F4: Individual payments of more than $12,565 to market research organisations, 2014–15

Organisation Description Amount ($) AMR Interactive Market and social research – country reports 2014 55,000.00 Taylor Nelson Soffres Service Improvement Study 2013–14 22,000.00 (payment 1) Taylor Nelson Soffres Service Improvement Study 2013–14 22,000.00 (payment 2) Taylor Nelson Soffres Research free trade agreement trade identity 26,400.00 Australian Public Service Australian Public Service Employee Census 2015 17,600.00 Commission Department of Foreign Affairs ABS data on foreign direct investment flows and 15,905.00 and Trade stock The Economist Group (Asia/ Research on impact of foreign direct investment 30,764.91 Pacific) and outlook on employment in Australia ORC International Pty Ltd International Visitor Survey 2015 supplementary 89,255.40 (payment 1) research – India ORC International Pty Ltd International Visitor Survey 2015 supplementary 89,255.40 (payment 2) research – India ORC International Pty Ltd International Visitor Survey 2015 supplementary 76,504.63 (payment 3) research – India Roy Morgan Research Phone ownership data for National Visitor Survey 20,773.50 Deloitte Access Economics Macroeconomic analysis of visitor economy 55,000.00 (payment 1) Deloitte Access Economics Macroeconomic analysis of visitor economy 82,500.00 (payment 2) Deloitte Access Economics Macroeconomic analysis of visitor economy 82,500.00 (payment 3) Deloitte Access Economics Destination Visitor Survey – South Australia and 60,000.00 (payment 1) Queensland Deloitte Access Economics Destination Visitor Survey – South Australia and 60,000.00 (payment 2) Queensland Deloitte Access Economics Destination Visitor Survey – South Australia and 30,000.00 (payment 3) Queensland Orima Research (payment 1) Passenger Facilitation Survey and Report 27,478.00 Orima Research (payment 2) Passenger Facilitation Survey and Report 16,486.80 KPMG Advisory Services Study – Opportunity Assessment of Automotive 14,603.45 (payment 1) Research and Development in India

258 Australian Trade Commission Annual Report 2014–15 05

Organisation Description Amount ($) KPMG Advisory Services Study – Opportunity Assessment of Automotive 13,153.81 (payment 2) Research and Development in India AMR Interactive (payment 1) ASEAN research project 95,700.00 AMR Interactive (payment 2) ASEAN research project 79,750.00 Bremer & Co (payment 1) Research project: key foreign investment 20,137.00 opportunities – material science Bremer & Co (payment 2) Research project: key foreign investment 20,138.00 opportunities – material science Bremer & Co (payment 1) Research project: key foreign investment 23,327.00 opportunities – medical technology Bremer & Co (payment 2) Research project: key foreign investment 23,328.00 opportunities – medical technology Bremer & Co (payment 1) Research project: key foreign investment 20,137.00 opportunities – digital technology/ICT Bremer & Co (payment 2) Research project - key foreign investment 20,138.00 opportunities - Digital Technology/ICT Illuminate Research Asia Student research project – Indonesia 37,367.16 Taylor Nelson Soffres Export Market Development Grants 2015 Survey 44,000.00 (payment 1) Taylor Nelson Soffres Export Market Development Grants 2015 Survey 28,798.00 (payment 2) Taylor Nelson Soffres Export Market Development Grants 2015 Survey 18,199.50 (payment 3) Taylor Nelson Soffres Service Improvement Study 2014–15 13,200.00 (payment 1) Taylor Nelson Soffres Service Improvement Study 2014–15 13,200.00 (payment 2) KPMG Export Market Development Grants economic 36,792.80 impact study for EMDG review Colmar Brunton ASEAN economic community study 32,876.25 Fresh Agenda (payment 1) Agribusiness and food investment research project 19,900.00 Fresh Agenda (payment 2) Agribusiness and food investment research project 29,850.00 Fresh Agenda (payment 3) Agribusiness and food investment research project 49,750.00 BIS Shrapnel Engineering construction investment research 13,838.00 project

Part 05 / Appendixes. Appendix F: Advertising and market research 259 Organisation Description Amount ($) Bremer & Co (payment 1) Phase 2 – Advanced material, science and 49,999.99 technology research project Bremer & Co (payment 2) Phase 2 – Advanced material, science and 49,999.99 technology research project Deloitte Access Economics Research report – Australian International 49,005.00 Education 2025 BDA Marketing Planning Analysis of event visitors to help identify key 22,000.00 (payment 1) barriers, ideas and opportunities (ACT) BDA Marketing Planning Analysis of event visitors to help identify key 22,000.00 (payment 2) barriers, ideas and opportunities (ACT) Metrix Consulting (payment 1) Analysis of the differences between users and 35,000.00 non-users of visitor centres (WA) Metrix Consulting (payment 2) Analysis of the differences between users and 35,000.00 non-users of visitor centres (WA) EY Sweeney (payment 1) Analysis of the impact of cycle tourism in regional 37,400.00 areas (VIC) EY Sweeney (payment 2) Analysis of the impact of cycle tourism in regional 25,850.00 areas (VIC) Colmar Brunton (payment 1) Analysis of the cruise ship sector (NT) 46,750.00 Colmar Brunton (payment 2) Analysis of the cruise ship sector (NT) 46,750.00 ORIMA Research (payment 1) Analysis of the visitor information centres model – 40,841.00 is it cost-effective and cost-efficient (NSW) ORIMA Research (payment 2) Analysis of the visitor information centres model – 70,708.00 is it cost-effective and cost-efficient (NSW) ORC International Pty Ltd National Visitor Survey interviews July 2014 197,036.96 ORC International Pty Ltd National Visitor Survey interviews August 2014 197,036.96 ORC International Pty Ltd National Visitor Survey interviews September 2014 197,036.96 ORC International Pty Ltd National Visitor Survey Q3 September 2014 65,678.99 ORC International Pty Ltd National Visitor Survey interviews October 2014 197,036.96 ORC International Pty Ltd National Visitor Survey interviews November 2014 197,036.96 ORC International Pty Ltd National Visitor Survey interviews December 2014 197,036.96 ORC International Pty Ltd National Visitor Survey Q4 December 2014 65,678.99 ORC International Pty Ltd National Visitor Survey interviews January 2015 202,454.51 ORC International Pty Ltd National Visitor Survey interviews February 2015 202,454.51 ORC International Pty Ltd National Visitor Survey interviews March 2015 202,454.51

260 Australian Trade Commission Annual Report 2014–15 05

Organisation Description Amount ($) ORC International Pty Ltd National Visitor Survey Q1 March 2015 67,484.84 ORC International Pty Ltd National Visitor Survey interviews April 2015 202,454.51 ORC International Pty Ltd National Visitor Survey interviews May 2015 202,454.51 ORC International Pty Ltd National Visitor Survey interviews June 2015 202,454.51 ORC International Pty Ltd National Visitor Survey Q2 June 2015 67,484.84 ORC International Pty Ltd International Visitor Survey interviews July 2014 221,536.59 ORC International Pty Ltd International Visitor Survey interviews August 2014 221,536.59 ORC International Pty Ltd International Visitor Survey interviews September 221,536.59 2014 ORC International Pty Ltd International Visitor Survey Q3 September 2014 73,845.53 ORC International Pty Ltd International Visitor Survey interviews October 221,536.59 2014 ORC International Pty Ltd International Visitor Survey interviews November 221,536.59 2014 ORC International Pty Ltd International Visitor Survey interviews December 221,536.59 2014 ORC International Pty Ltd International Visitor Survey Q4 December 2014 73,845.53 ORC International Pty Ltd International Visitor Survey interviews January 227,627.76 2015 ORC International Pty Ltd International Visitor Survey interviews February 227,627.76 2015 ORC International Pty Ltd International Visitor Survey interviews March 2015 227,627.76 ORC International Pty Ltd International Visitor Survey Q1 March 2015 75,875.92 ORC International Pty Ltd International Visitor Survey interviews April 2015 227,627.76 ORC International Pty Ltd International Visitor Survey interviews May 2015 227,627.76 ORC International Pty Ltd International Visitor Survey interviews June 2015 227,627.76 ORC International Pty Ltd International Visitor Survey Q2 June 2015 75,875.92 ORC International Pty Ltd International Visitor Survey – airport rental annual fee 55,000.00 Total 7,791,617.01

Part 05 / Appendixes. Appendix F: Advertising and market research 261 Appendix G

List of requirements This list of requirements has been prepared in accordance with the Requirements for annual reports for departments, executive agencies and other non-corporate Commonwealth entities, which were approved by the Joint Committee of Public Accounts and Audit and published on 25 June 2015. Austrade’s compliance with these requirements is shown in Table G1.

Table G1: List of requirements

Description Requirement Page Letter of transmittal Mandatory ii Table of contents Mandatory iii Index Mandatory 270–9 Glossary Mandatory 269 Contact officer(s) Mandatory 280 Internet home page address and internet address for report Mandatory 280

Review by Chief Executive Officer Review by Chief Executive Officer Mandatory 7–12 Summary of significant issues and developments Suggested 7–12, 13–4 Overview of agency’s performance and financial results Suggested 7–12, 13–4, 18–31, 113–5, 127–9 Outlook for following year Suggested 10–2 Significant issues and developments—portfolio Portfolio Not applicable(a) departments— suggested

Agency overview Role and functions Mandatory Inside front cover, 2–3 Organisational structure Mandatory 6 Outcome and programme structure Mandatory 16 Where outcome and programme structures differ from PBS/ Mandatory Not applicable— PAES or other portfolio statements accompanying any other no change additional appropriation bills (other portfolio statements), details of variation and reasons for change Portfolio structure Portfolio Not applicable(a) departments— mandatory

262 Australian Trade Commission Annual Report 2014–15 05

Description Requirement Page

Report on performance Review of performance during the year in relation to Mandatory 15–132 programmes and contribution to outcomes Actual performance in relation to deliverables and key Mandatory 18–31, 113–5, performance indicators set out in PBS/PAES or other 127–9 portfolio statements Where performance targets differ from the PBS/PAES, details Mandatory 129 of both former and new targets, and reasons for the change Narrative discussion and analysis of performance Mandatory 15–132 Trend information Mandatory 14, 42, 51, 117, 118, 132, 164 Significant changes in nature of principal functions/services Suggested 101–2 Performance of purchaser/provider arrangements If applicable, 108–9 suggested Factors, events or trends influencing agency performance Suggested 33, 51, 57–8, 68–70 Contribution of risk management in achieving objectives Suggested 124, 141–3 Performance against service charter customer service If applicable, 41–43, 246–7 standards, complaints data, and the agency’s response to mandatory complaints Discussion and analysis of the agency’s financial Mandatory 13–4 performance Discussion of any significant changes in financial results Mandatory 13–4 from the prior year, from budget or anticipated to have a significant impact on future operations Agency resource statement and summary resource tables Mandatory 250–2 by outcomes

Management and accountability

Corporate governance Agency heads are required to certify their agency’s actions Mandatory ii in dealing with fraud Statement of the main corporate governance practices in place Mandatory 134–8 Names of the senior executive and their responsibilities Suggested 135–6 Senior management committees and their roles Suggested 137–9 Corporate and operational plans and associated Suggested 139–40 performance reporting and review

Part 05 / Appendixes. Appendix G: List of requirements 263 Description Requirement Page Internal audit arrangements including approach adopted to Suggested 141–3 identifying areas of significant financial or operational risk and arrangements to manage those risks Policy and practices on the establishment and maintenance Suggested 137 of appropriate ethical standards How nature and amount of remuneration for SES officers is Suggested 146–7 determined

External scrutiny Significant developments in external scrutiny Mandatory 143–5 Judicial decisions and decisions of administrative tribunals Mandatory 144 and by the Australian Information Commissioner Reports by the Auditor-General, a parliamentary committee, Mandatory 144 the Commonwealth Ombudsman or an agency capability review

Management of human resources Assessment of effectiveness in managing and developing Mandatory 145–60 human resources to achieve agency objectives Workforce planning, staff retention and turnover Suggested 148 Impact and features of enterprise or collective agreements, Suggested 145–7 individual flexibility arrangements (IFAs), determinations, common law contracts and Australian Workplace Agreements (AWAs) Training and development undertaken and its impact Suggested 141, 152–4, 157, 160, 163 Work health and safety performance Suggested 131, 160, 248–9 Productivity gains Suggested 147, 165–8 Statistics on staffing Mandatory 148–52

Statistics on employees who identify as Indigenous Mandatory 148 Enterprise or collective agreements, IFAs, determinations, Mandatory 145–7 common law contracts and AWAs Performance pay Mandatory 156

Assets management Assessment of effectiveness of assets management If applicable, 161 mandatory

264 Australian Trade Commission Annual Report 2014–15 05

Description Requirement Page

Purchasing Assessment of purchasing against core policies and Mandatory 163 principles

Consultants The annual report must include a summary statement Mandatory 163–4 detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website

Australian National Audit Office access clauses Absence of provisions in contracts allowing access by the Mandatory 163 Auditor-General

Exempt contracts Contracts exempted from publication in AusTender Mandatory 163

Small business Procurement initiatives to support small business Mandatory 164

Financial statements Financial statements Mandatory 169–242

Other mandatory information Work health and safety (Schedule 2, Part 4 of the Work Mandatory 160, 248, 249 Health and Safety Act 2011) Advertising and market research (section 311A of the Mandatory 256–61 Commonwealth Electoral Act 1918) and statement on advertising campaigns Ecologically sustainable development and environmental Mandatory 253–5 performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999) Compliance with the agency’s obligations under the Carer If applicable, Not applicable Recognition Act 2010 mandatory Grants programmes (b) Mandatory 77

Part 05 / Appendixes. Appendix G: List of requirements 265 Description Requirement Page Disability reporting—explicit and transparent reference to Mandatory 157–8 agencylevel information available through other reporting mechanisms Information Publication Scheme statement Mandatory 145 Correction of material errors in previous annual report If applicable, Not applicable mandatory Agency resource statements and resources for outcomes Mandatory 250–2 List of requirements Mandatory 262–66

PBS = Portfolio Budget Statements

PAES = Portfolio Additional Estimates Statements

(a) Austrade is not a portfolio department so this requirement is not applicable.

(b) Austrade administers the Export Market Development Grants (EMDG) scheme. It is a legislated scheme, not a discretionary grants programme, so a page reference for the EMDG scheme has not been included under this requirement. For information on the EMDG scheme, see pages 113–25.

266 Australian Trade Commission Annual Report 2014–15 List of figures and tables 05

Figures Figure 21: EMDG recipients by number of employees, 2013–14 grant year 119 Figure 1: Austrade’s Australian and overseas locations at 30 June 2015 4 Figure 22: EMDG recipients by annual export earnings, 2013–14 grant year 120 Figure 2: Austrade’s organisational structure at 30 June 2015 6 Figure 23: EMDG recipients by state and territory, 2013–14 grant year 120 Figure 3: Austrade’s outcome and programme reporting framework for 2014–15 16 Figure 24: EMDG recipients by industry, 2013–14 grant year 121 Figure 4: Australian goods exporters, 2013–14 34 Figure 25: Top six markets targeted by Figure 5: Australian services exporters, EMDG recipients, 2013–14 grant year 121 2013–14 34 Figure 26: EMDG recipients by Figure 6: Australia’s top 10 export expenditure category, 2013–14 grant year 122 destinations for goods and services, 2014 35 Figure 27: Austrade’s executive Figure 7: Composition of Australia’s top management structure 139 10 exports, 2014 36 Figure 28: The relationship between Figure 8: Client ratings of Austrade’s Austrade’s key planning processes in service, 2011 to 2015 42 2014–15 140 Figure 9: Importance of various market Figure 29: The Austrade on the Go development activities in earning programme 168 international revenue 49

Figure 10: Most significant barriers to Tables doing business in overseas markets 49 Table 1: Austrade’s financial performance, Figure 11: Australia’s education exports, 2011–12 to 2014–15 14 2005 to 2014 51 Table 2: Summary of results for Figure 12: Austrade’s investment programme 1.1 deliverables 19 attraction life cycle 57 Table 3: Summary of results for Figure 13: Austrade-assisted investment programme 1.1 key performance indicators 27 outcomes by source market, 2014–15 59 Table 4: Reports released by Tourism Figure 14: Austrade-assisted investment Research Australia, 2014–15 81 outcomes by industry sector, 2014–15 59 Table 5: Summary of results for Figure 15: International visitors in programme 1.2 deliverables 114 Australia, year ending March 2015 68 Table 6: Summary of results for Figure 16: Visitor numbers and spend by programme 1.2 key performance indicators 115 state and territory, year ending March 2015 69 Table 7: Payments to EMDG recipients, Figure 17: Domestic travel in Australia, 2010–11 to 2014–15 117 year ending March 2015 70 Table 8: Profile of EMDG applicants and Figure 18: Australian tourism investment recipients, by grant year, 2009–10 to 2013–14 118 pipeline, 2014 71 Table 9: EMDG recipients by business Figure 19: Popular tweet from Austrade’s type, 2013–14 grant year 119 Twitter account in 2014–15 110 Table 10: EMDG recipients by state and Figure 20: EMDG recipients by annual territory, 2012–13 and 2013–14 grant years 120 income, 2013–14 grant year 119

List of figures and tables 267 Table 11: Appeals to the Administrative Table 27: Foreign language capabilities Appeals Tribunal under the EMDG Act in at Austrade, priority languages, at 2014–15 125 30 June 2015 154 Table 12: Summary of results for Table 28: Trends in consultancies, programme 2.1 deliverables 128 2010–11 to 2014–15 164 Table 13: Summary of results for Appendixes programme 2.1 key performance indicators 129 Table 14: Austrade-managed consulates Figure A1: Austrade’s national network, at 30 June 2015 130 including TradeStart, at 30 June 2015 244 Table 15: Consular assistance provided Table A1: TradeStart locations and by Austrade, 2010–11 to 2014–15 132 partners at 30 June 2015 245 Table 16: Austrade’s committees and Table C1: Workplace incidents notified subcommittees in 2014–15 138 by Austrade under health and safety legislation, 2012–13 to 2014–15 249 Table 17: Austrade employees covered by workplace, collective, common law, Table D1: Agency resource statement, and individual flexibility agreements at 30 2014–15 250 June 2015 147 Table D2: Expenses for outcomes, 2014–15 251 Table 18: Ongoing and non-ongoing Table E1: Austrade’s energy employees (excluding overseas-engaged consumption, 2009–10 to 2014–15 253 employees), full-time and part-time, at Table E2: Energy efficiency performance, 30 June 2015 148 2010–11 to 2014–15 255 Table 19: Ongoing and non-ongoing Table F1: Total advertising and market employees (excluding overseas-engaged research expenditure by category, 2014–15 256 employees), full-time and part-time, who Table F2: Individual payments of more identify as Indigenous at 30 June 2015 148 than $12,565 to media advertising Table 20: Employees by category of organisations, 2014–15 257 employment and gender at 30 June 2015 149 Table F3: Individual payments of more Table 21: Employees by classification, than $12,565 to direct mail organisations, gender and location at 30 June 2015 149 2014–15 257 Table 22: Employees by location and Table F4: Individual payments of gender at 30 June 2015 150 more than $12,565 to market research Table 23: Employees by group or division organisations, 2014–15 258 at 30 June 2015 151 Table G1: List of requirements 262 Table 24: Senior Executive Service by classification and gender at 30 June 2015 151 Table 25: Senior Executive Service by classification and location at 30 June 2015 152 Table 26: Senior Executive Service gains and losses during 2014–15 152

268 Australian Trade Commission Annual Report 2014–15 Abbreviations and acronyms 05

AAT Administrative Appeals Tribunal ICT information and ABS Australian Bureau of Statistics communications technology ADS Approved Destination Status IMF International Monetary Fund AFC Asian Football Confederation IP intellectual property AGIMO Australian Government Information ISO International Organization Management Office for Standardization ANAO Australian National Audit Office IT information technology AOPL Austrade overseas JAEPA Japan–Australia Economic performance level Partnership Agreement APEC Asia–Pacific Economic Cooperation KAFTA Korea–Australia Free Trade Agreement APL Austrade performance level KPI key performance indicator APS Australian Public Service LNG liquefied natural gas ASCOT Australian Standing Committee on Tourism METS mining equipment, technology and services ASEAN Association of Southeast Asian Nations MIP Market Information Package AS/NZS Australian Standard/New OECD Organisation for Economic Co- Zealand Standard operation and Development Austrade Australian Trade Commission OEE overseas-engaged employee CEO chief executive officer PIV Premium Investor Visa ChAFTA China–Australia Free PNG Papua New Guinea Trade Agreement PRETSS policy, research, equipment, CRICOS Commonwealth Register of technology, skills and service Institutions and Courses for SES Senior Executive Service Overseas Students SIV Significant Investor Visa CSIRO Commonwealth Scientific and SME small to medium-sized enterprise Industrial Research Organisation SWAPP2015 Software, Workstation and DFAT Department of Foreign Affairs Portability Programme 2015 and Trade TAFE technical and further education EMDG Export Market Development Grants TDDI Tourism EMDG Act Export Market Development Grants Demand-Driver Infrastructure Act 1997 TEP tourism employment plan FDI foreign direct investment TIRF Tourism Industry Regional FIFA Fédération Internationale de Development Fund Football Association TRA Tourism Research Australia FOI Act Freedom of Information Act 1982 VET vocational education and training FTA free trade agreement WHS work health and safety GDP gross domestic product WHS Act Work Health and Safety Act 2011 GST goods and services tax WIGB Women in Global Business ICC International Cricket Council

Abbreviations and acronyms 269 Index

A economic diplomacy, 91 Aboriginal and Torres Strait Islander peoples, 158, 159 foreign direct investment, 58 ABS Tourism Satellite Account, 80 market, 12, 32, 35, 64, 89, 90 Abu Dhabi office, 98 member states, 89, 90–1 Accessing Global Value Chains five-year strategy, 37 Atomo Diagnostics, 39 Administration of the Export Market Development Attorney-General’s Department, 162 Grants scheme (Audit Report no. 15, 2014–15), Attracting business events to Australia guide, 78, 79 144 Audit and Risk Committee, 134, 137, 138, 141, 142, 143, Administrative Appeals Tribunal (AAT), 124–5, 144 144 Administrative Appeals Tribunal Act 1975, 163 Auditor-General, 144, 163 advanced manufacturing, services and technology, 7, audits, 141, 143, 144 12, 57, 60 AusBiotech, 44 foreign direct investment, 59 AusTender, 163, 164 manufacturing innovation, 33 Austmine, 44, 45, 105 advertising, 256–7 Austrade Anywhere, 166 aerospace global value chains, 33, 37, 90, 104 Austrade Direct, 38 Africa, 39 Austrade Enterprise Agreement 2012–2014, 146, 147 aged care sector, 32, 45, 91, 109 Austrade on the Go programme, 168 agency agreements, 108–9 Austrade services to government, 45 agency resource statement, 2014–15, 250 Austrade Student Centre website. see Study in agribusiness, 32, 43, 57, 58, 60, 93, 94, 97, 102, 109, Australia website 126 Australia Business Week in India, 9, 62, 84–5, 104, foreign direct investment, 59, 62, 63 105, 110, 111 Agricultural Competitiveness White Paper, 102, 103 Australia Day Achievement Medallions, 157 air transport, 73 Australia Unlimited brand, 62, 105, 111 annual reports, 157, 164, 262 MENA 2015, 111 anti-bribery, 48, 142–3, 163 Australia Week events, 11–12, 13, 103 ANZ Global Wealth, 45 Australia Week in China, 44, 74, 87 Approved Destination Status (ADS) scheme Australia–China Tourism Dialogue, 82 China, 82 Australia–India Comprehensive Economic Code of Business Standards and Ethics, 82 Cooperation Agreement, 83, 105 APS Diversity Council Award for Indigenous Australia–Sichuan aged care training forum, 56 Employment, 158 Australian Chamber of Commerce and Industry, 111 APS employee census, 10, 145 Australian Criminal Code, 142 APS Statistical Bulletin, 157 Australian Export Awards, 111–12 APS values and employment principles, 156 Australian Government Argentina, 97 Cloud Computing Policy, 166 AS 8001:2003 Fraud Corruption and Control, 142 Protective Security Policy Framework, 162 AS/NZS ISO 31000:2009 Risk Management, 141, 142 Public Sector Workplace Bargaining Policy, 147 Asia Marketing Fund, 78 Australian Government Information Management Asia–Pacific Economic Cooperation (APEC), 46 Office (AGIMO), 167 Asialink Business, 40 Australian Grape and Wine Authority, 96 Asialink Leaders Programme scholarships, 155 Australian Innovation Showcase, 84 Asian Business Engagement Plan, 126 Australian International Education 2025, 9, 12, 51–2, Asian Cup (AFC), 9, 43, 63, 107 100 Association of Southeast Asian Nations (ASEAN) Australian Investment Forum, 2014, 61

270 Australian Trade Commission Annual Report 2014–15 05

Australian Made Campaign, 112 business events industry, 75, 78, 79 Australian National Audit Office (ANAO), 134 Business Events Roundtable, 75 Australian Network on Disability (AND), 160 business systems, 165 Australian Public Service employee census and survey, 10, 145 Values and Code of Conduct, 141 C Australian Public Service Commission, 153 Cambodia, 45, 89 Australian Regional Tourism Network, 75, 101 Canada, 73, 105, 132 Australian Services Roundtable, 40 capability Australian Standing Committee on Tourism (ASCOT), development programmes, 152–3, 154 25, 72, 75, 101 languages, 154 Australian Suppliers Directory, 43 leadership, 154 Australian Taxation Office, 38 reports, 43 Australian Technologies Competition, 44 Cerrejon, 37 Australian Tourism Export Council, 75, 101 Charles Darwin University, 112 Australian Tourism Investment Attraction Partnership, cherry exports, 94 74 Chief Counsel, Legal, Procurement and Fraud, 137 Australian Trade Commission Act 1985, iv, 3, 134, 139, Chief Executive Officer (CEO), 135 143, 254 2014–15 review, 7–12 Australia’s International Business Survey instructions, 141, 163 2014, 48 letter, ii 2015, 10, 48 responsibilities, 107, 134 automotive industry, 86 Chief Finance Officer’s report, 13 global value chains, 37 China Senate inquiry, 108 air services agreement, 82 awards Approved Destination Status (ADS) scheme, 82 export, 111–12 Australia Week in China, 44, 74, 87 staff, 156–7 Australia’s trade relationship, 87–9 e-commerce, 10, 12, 88, 89 education market, 87 B foreign direct investment, 58, 74, 87 barriers to business, 12, 40, 48, 49, 75, 102 tourism agreements, 82 Beryl Wilson Austrade Scholarship for Women in visas reforms for Chinese nationals, 8, 11, 72, 77 International Business, 45, 47, 155 visitors to Australia, 68, 80, 82, 87 BHP Billiton, 98, 123 China Entrepreneur Club, 62, 63 Bliss, Milena, 126 China International Education Exhibition Tour, 52 Boyer, Daniel, 76 China Tourism Academy, 82 Brand Australia. see Australia Unlimited brand China–Australia Free Trade Agreement (ChAFTA), 40, Brand Australia programme, 110–11 80, 89 Brazil, 56, 97, 98, 105 client service, 3, 41. see also Service bribery. see anti-bribery Improvement Study briefings. see parliamentary inquiries and briefings client surveys, 3, 7, 41–2, 115, 116 Brunei, 89 codes of conduct, 141 Budget 2015–16, 10, 13 Colombia, 37, 97, 105, 161 Building Dairy Investment Coordination workshop, 62 Commonwealth Authorities and Companies Act 1997, business continuity planning, 130–1, 161 iv

Index 271 Commonwealth Bank, 112 9, 11, 39, 46, 55, 63, 70, 77, 78, 83, 85, 86, 91, Commonwealth Contracting Suite, 164 97, 100, 102, 106, 108, 111, 129, 131, 135, 154, 161, Commonwealth Director of Public Prosecutions, 124 162, 166 Commonwealth Disability Strategy, 157, 158 Department of Immigration and Border Protection, 8, Commonwealth Electoral Act 1918, 256 11, 54, 72, 76, 99, 100, 102, 103 Commonwealth Ombudsman, 144, 247 Department of Industry and Science, 11, 40, 44, 63, Commonwealth Procurement Rules, 163, 164 86, 99, 103 Commonwealth Scientific and Industrial Research Department of Infrastructure and Regional Organisation (CSIRO), 56, 86, 103 Development, 73, 85, 99 complaints, 43 Department of the Prime Minister and Cabinet, 8, 99, compliments, 43 102, 136 consular services Destination Visitor Survey, 78, 79 deliverables, 127, 128 Disability ACT, 157 objective, 127 disability employment programme, 157 passport applications, 131 disability reporting, 157 performance indicators, 127, 129 Disability Training Awareness workshop, 157 statistics, 10, 127, 132 diversity and inclusion, 157 consulates activities, 130–1 Consular Officer, Vancouver, 131 E Houston, 93, 130, 161 e-commerce, 32, 36, 48, 88, 89 locations, 130 E-commerce in China: A guide for Australian consultancies, 164 business, 88 Consultant Quality Incentive Programme, 122, 124 ecologically sustainable development, 253–5 consultants, 163–4 economic diplomacy, 55, 83, 90, 91, 103, 106 contingency plans (consular), 130–1 Economics at Austrade blog, 109 corporate governance, 134–8 education agents (offshore), 55 Corporate Governance Forum, 134 education industry Corporate Plan 2014–15, 16 agents, 55 corporate planning, 139–41 Austrade’s goals, 50 corruption laws, 48. see also anti-bribery Australian International Education 2025, 9, 12, 51–2, Council of Australian Governments, 53 100 Courage: Inclusive Leadership in Action, 154 Brazil education mission, 56 Craig Senger Scholarship, 155 China market, 87 Cricket World Cup (ICC), 9, 23, 43, 63, 69, 72 data trends, 54 cross-cultural competency, 154 Future Unlimited brand, 10, 50, 52, 55, 111 global alumni engagement strategy, 55, 100, 111 India market, 86 D Japan market, 50, 55 Dairy Australia, 62, 89 market research and intelligence, 53 data centres, 165–6, 167 marketing, internationally, 52–3, 100 Deakin University, 86 opportunities identified, 54 Defence Materiel Organisation, 112 performance, 51 Department of Agriculture, 85, 89, 99, 103, 108 social media, 53 Department of Education and Training, 54, 86, 99, 100 stakeholder engagement, 55, 56, 100 Department of Foreign Affairs and Trade (DFAT), 1, 2, statistics, 51, 52

272 Australian Trade Commission Annual Report 2014–15 05

student enrolments in Australia, 51, 91 purpose, 116 Study in Australia, 10, 50, 52, 53 recipient profiles, 118–22 value, international market, 51, 91 review, 116 vocational education and training (VET), 56 risk management, 124 Education Visa Consultative Committee, 100 statistics overview, 9, 113, 117 Efic. see Export Finance and Insurance Corporation Export Market Development Grants (Extended Eiken Foundation, 50 Lodgement and Consultant Quality Incentive) emerging markets (education), 50, 54 Determination 2012, 122 employee census (APS), 145 exporters. see also global value chains employee recognition, 156 Austrade assistance, 36–49 employees. see staff awards, 111–12 employment framework, 145–6 statistics, 33–4 Energy White Paper—Austrade, 102 exports Engaging with Developed Asia: Free Trade compositions, 35–6 Agreements (speaker series), 45 destinations, 35 Enterprise Vault, 167 statistics, 33, 34, 87 environmental performance, 253–5 external scrutiny, 144–5 Ethics Committee, 134, 137, 138 Eyres, Tony, 65 European Association for International Education, 52 European Union, 35 foreign direct investment, 58 F Executive Group, 134, 135–6, 138 Field, Paul, 66 executive management structure, 139 financial management, 161–4 expenditure, 13 Financial Management and Accountability Act 1997, Export Council of Australia, 10, 48 143 Export Finance and Insurance Corporation (Efic), 10, financial performance, 14–15 40, 48 financial resources, 250 Export Market Development Grants Act 1997, 116, 143, financial services sector, 95 144, 254 financial statements, 173–242 Export Market Development Grants (EMDG) scheme food and beverage sector appeals, 124 foreign direct investment, 59, 62, 63 applicants, 118 markets, 32, 88, 89, 90, 94, 96 applications, 124 Food Innovation Australia Limited, 44 appropriation, 122 Foreign Affairs, Defence and Trade References communication and promotion, 124 Committee, 108 consultants, 122, 124, 125 foreign direct investment (FDI) deliverables, 114 ASEAN, 58 40th anniversary, 124 attracting inward investment, 57–64 fraud, 124 Austrade’s role, 7, 57 funding, 122 China, 58, 74, 87 litigation, 162, 163 Europe, 58, 61 outcomes, 117 events promoting, 61–3 payments, 117 identification of pipeline projects, 60 performance India, 84 administrative, 124 inward investment outcomes, 58–9 indicators, 115 Japan, 58, 64, 97

Index 273 Korea, 58 H Northern Australia Investment Forum, 11, 63, 64, Hastings Fund Management, 95 100 health sector, 32, 39, 91, 103, 104 operating context, 57–8 Health Vocational Education, 56 outlook, 10–2 highlights, i priority milestones, 59–60 history, iv priority sectors, 57, 59 Hong Kong, 73, 121 research projects, 60 House With No Steps, 157 senior investment specialists, 65–7 Houston office, 7, 92–3, 130, 161 sources, 58, 59 The Hub, 141, 165 statistics, 58 human resources management, 145–60 stock of, 58 Thailand, 90 tourism, 73–4, 79 I training courses, 60 ICT strategy, 165–7 United Kingdom, 58 initiatives, 167–8 United States, 58, 92–3 Inclusive Leadership Programme, 154 foreign government delegations, 43, 106–7 Income Tax Assessment Act 1936, 38 fraud control, 142 independent audits, 144 EMDG scheme, 124 India Fraud control arrangements (Audit Report no. 3, Australia Business Week, 9, 62, 84–5, 100, 104, 2014–15), 144 105, 110, 111 Fraud control in Australian Government entities, 142 Australia’s trade relationship, 83–6 free trade agreements (FTAs), 7, 9, 10, 11, 12, 13, 39–40, as education market, 86 45, 64, 99, 108. see also China–Australia Free foreign direct investment, 84 Trade Agreement; Japan–Australia Economic free trade agreement negotiations, 104 Partnership Agreement; Korea–Australia Free visas reform for Indian nationals, 30 Trade Agreement Indigenous Australian Government Development freedom of information, 145 Programme, 158 Freedom of Information Act 1982, 144, 145, 163 Indigenous Cadetship Support Programme, 158, 159 function, 2 Indigenous Champion, 158 Funder, Hugh, 67 Indigenous programmes, 158 funding, 13 Indigenous Working Group, 158 Future Unlimited brand, 10, 50, 52, 55, 111 individual flexibility arrangements, 146, 147 Indonesia, 12, 40, 46, 49, 64, 89, 90, 91 Information and Technology Services Branch, 168 G Information Commissioner, 144 Germany, 121 Information Publication Scheme, 145 Global Austrade Staff Awards, 156, 166 information systems Global News, 141 business systems, 165 global value chains, 12, 32, 33, 36–7, 48, 86, 116 cloud-based service delivery, 165, 166 goods exports, 34 data centres, 165–6 governance, 134–9 equipment replacement, 168 GP Graders, 112 mobility support, 166, 168 A guide to developing tourism employment plans, 76 security, 167 Gulf Cooperation Council countries, 63 wide area network, 166

274 Australian Trade Commission Annual Report 2014–15 05 infrastructure, 33, 43. see also tourism infrastructure K foreign direct investment, 57, 59, 63 Karoon Energy International, 98 infrastructure markets, 33, 105 Kelly, Carole, 132 Inquiry into the Development of Northern Australia, 107 Korea, 32, 40, 58, 93–5 internal audit, 141, 143 Korea–Australia Free Trade Agreement (KAFTA), 9, 39, internal controls, 141–2 40, 64, 93, 94–5, 108 International Business Survey Kuwait, 105 2014, 48 2015, 10, 48 International Civil Aviation Organization Air Services L Negotiation Event (ICAN 2014), 73, 101 Landbridge, 87 International Dairy Investment Forum, 62 language capabilities, 154 international education sector. see education industry Laos, 89 International Mining and Resources Conference, 62, Latest from Austrade stories, 109 111 Latin America, 37, 97, 98, 105 International Monetary Fund (IMF), 33 Latin America—transnational education, 56 international sports business (Match Australia), 9, 12, leadership capability, 154 13, 43–4, 63 legal services, 162–3 international students, 51, 91 legislation, 3, 143 International Visitor Survey, 79, 80 letter to Minister, ii investment, 12, 44, 48, 92, 98. see also foreign Li, Fei, 47, 155 direct investment Liu, Bing, 89 Investment Attraction Partnership Group, 73, 74 Livewell employee assistance programme, 160 investment development. see foreign Local Government Area Profiles (tourism), 80 direct investment locations, 4–5, 244, 281 Investment Statement, 8 Investor Update, 109 inward investment. see foreign direct investment M IT. see information systems Major Sporting Events Taskforce, 43 Italy, 61 Malaysia, 64, 73, 89, 90, 91 Malcolm, Craig, 41 management committees, 134, 137–8 J manufacturing sector. see advanced manufacturing, Japan, 9, 32, 35, 39, 40, 50, 55, 58, 64, 73, 96–7 services and technology Japan agent engagement report: Realising productive Market Information Package (MIP), 53–4, 55 partnerships, 55 market research, 256, 257–61 Japan–Australia Economic Partnership Agreement Match Australia programme, 9, 12, 13, 43–4, 63 (JAEPA), 39, 40, 96, 97 Meat & Livestock Australia, 89 Joint Select Committee on Northern Australia, 107, 108 media and communications, 109–10 Joint Select Committee on Trade and Investment medical technology, 39 Growth, 108 Mental Health Month, 160 Joint Standing Committee on Foreign Affairs, Defence Metwalli, Saïd, 98 and Trade, 108 Mexico, 97, 98 judicial decisions, 144 Middle East, 38, 39, 105 Migration Act 1958, 162 mining and resources sector, 105, 106

Index 275 mining equipment, technology and services (METS), O 37, 45, 83, 105 occupational health and safety. see work health Mining Indaba 2015, 111 and safety Minister for Trade and Investment, 3, 8, 40, 44, 47, 51, Office of Legal Services Coordination, 162, 163 61, 78, 84, 87, 90, 99, 101, 105, 107, 110, 111, 112, online services, 38, 109 116, 132, 134, 155 ‘open for business’ message, 61 ministerial activities Organisation for Economic Co-operation and in Australia, 40, 47, 51, 61, 63, 78, 101, 106–7, 111–12, Development (OECD), 37, 76, 142–3 155 Global Forum on Tourism Statistics in Japan, 75 overseas visits, 12, 44, 78, 84, 87, 90, 104–6, 132 Working Party on Bribery Phase III report, 142–3 ministerial briefs, 107 organisational structure, 6 ministerial correspondence, 107 Outcome 1 ministerial directions, 134 Programme 1.1: Promotion of Australia’s export and ministerial responsibilities, 3 other international economic interests Minister for Small Business, 40 deliverables, 19–27 MIP Weekly, 53 highlights, 18 Monash Institute of Pharmaceutical Sciences, 64 objective, 17 Monash University, 64, 155 performance indicators, 27–31 multicultural plan, 247 Programme 1.2: Programmes to promote Australia’s multiple entry visitor visa, 72 export and other international economic Myanmar, 56, 73, 89, 100 interests, 113 deliverables, 113, 114 objective and highlights, 113 N performance indicators, 113, 115 National Disability Strategy 2010–2020, 158 Outcome 2 National Investment Advisory Board, 99, 100 Programme 2.1: Consular and Passport Services National Strategy for International Education, 51, 100 deliverables, 128 National Tourism Accreditation Framework (T-QUAL), objective and highlights, 127 26 performance indicators, 127, 129 National Tourism Alliance, 75, 101 outcomes and programmes reporting framework, 16 National Visitor Survey, 69, 79, 80 outlook 2015–16, 10–12 network, 83, 109, 136, 158, 161, 162, 165, 168 overseas assignments, 10, 156 A new model for VET growth in South Asia, 56 Overseas-Engaged Employees’ Scholarships, 155 New Zealand, 69, 87, 100, 105 Overseas Property Office (DFAT), 161 trans-Tasman visa arrangements, 72, 73 North America, 58 foreign direct investment, 59 P Northern Australia Papua New Guinea (PNG), 106 investment focus, 11 parliamentary inquiries and briefings, 107–8 Joint Select Committee, 107, 108 Parliamentary Secretary to the Minister for Trade and White Paper, 8, 11, 63, 64, 72, 102 Investment, 3, 40, 104, 107, 109, 110 Northern Australia: Emerging opportunities in an Parliamentary Workflow System, 167 advanced economy report, 64 partnerships, 99 Northern Australia Investment Forum, 11, 63, 64, 100 passport services, 131 NSW Trade & Investment, 60, 108, 245 performance agreements, staff, 140 performance framework, 140, 156

276 Australian Trade Commission Annual Report 2014–15 05 performance reporting, 16 recruitment activity, 152 Peru, 97, 98 Regional Tourism Infrastructure and Innovation Fund, Philippines, 73, 89, 106, 155 77 Pivot North Inquiry into the Development of Northern Reid Fruits, 94 Australia: Final Report, 107 Relationship Management System, 165 PMD International Pty Ltd, 125 renewable energy technology, 44 Policy, Research, Equipment, Technology, Skills and reporting framework, 16 Services (PRETSS) framework, 32, 36 resources and energy Portfolio Budget Statements 2014–15, 113, 127, 140 foreign direct investment, 57, 59, 62, 63, 65 Premium Investor Visa (PIV) programme, 8, 11, 103, 141, markets, 32, 37, 83, 84, 97, 98 162, 167 Responding to Growth, roadshow, 55 PricewaterhouseCoopers, 143 responsibilities, 8 privacy, 145 Rethink tax: Better tax, better Australia, 102 Privacy Act 1988, 145 revenue, 13 Privacy Commissioner, 247 risk management, 141–3 procurement, 163–4 role, 2 Productivity Commission, 76 property management, 161 Protective Security Policy Framework, 162 S Public Governance, Performance and Accountability SAGE Automation, 123 Act 2013, 3, 134, 141, 143, 163 Salini Impregilo, 61 Public Governance, Performance and Accountability Saudi Arabia, 56, 98, 105 Rule 2014, 142 scholarships, 45, 47, 155. see also Beryl Wilson Public Interest Disclosure Act 2013, 144, 162 Austrade Scholarship for Women in Public sector audit committees: Independent International Business assurance and advice for accountable security, 162 authorities, 137 Senate Economics References Committee, 108 Public sector audit committees: Independent Senior Executive Service (SES) assurance and advice for chief executives and remuneration, 146–7 boards, 144 senior investment specialists, 7, 60, 65–7 Public sector financial statements: High-quality Senior Officials Trade and Investment Group, 99, 103 reporting through good governance and Sentance, Bryce, 159 processes, 144 service charter, 246–7 Public sector governance: Strengthening service exports, 34 performance through good governance, 134, Service Improvement Study, 2014–15, 3, 7, 27, 28, 137, 142, 143, 144 41–2, 115, 116 Public Service Act 1999, 3, 134, 143, 146 services markets, 33 publications, 109 short-term overseas assignments, 156 purchasing, 163 Significant Investor Visa (SIV) programme, 8, 11, 101, 103, 141, 162, 167 Singapore, 37, 40, 64, 69, 73, 89, 90, 104, 110, 121 R Singapore–Australia Joint Ministerial Council, 104 Ralston, Kelly 92 Skilled Occupations List, 77 RayGen Resources, 44 small and medium-sized enterprises (SMEs), 164 Reconciliation Action Plan, 158 SmartGate, 73 RecruitAbility, 152 social media, 53, 109, 110, 111

Index 277 Software, Workstation and Portability Programme tax exemptions, 38 (SWAPP2015), 166, 168, 253 10-year multiple entry visitor visa (Chinese nationals), solar technology, 44 8, 11, 72 South Australian Department of State Development, Thailand, 64, 89, 90 108 Torres Strait Islander peoples. see Aboriginal and sport. see Match Australia programme Torres Strait Islander peoples staff tourism. see also T-QUAL Grants Programme assistance programme, 160 air transport, 73 awards, 156–7 Austrade’s role, 68, 78 communications, 140–1 China Indigenous, 158–9 foreign direct investment, 74 leadership programme, 154 visitors from, 68, 80, 82, 87 numbers, 3 employment, 76 overseas-engaged, 146, 148, 154, 155 expenditure by tourists, 68 overview, 3 grants programmes, 77 people with disability, 157–8 infrastructure, 8, 59, 63, 70, 71 performance agreements, 140 investment in, 70–1 recognition, 156 foreign direct investment, 73–4, 79 statistical profile, 148–52 labour force survey, 77 surveys, 145 outlook, 11 training and development, 141, 152–4, 157, 160, 163 passport control, 73 turnover, 3 productivity review, 76 wellbeing, 160 promotional events, 75, 78 workplace diversity, 157, 158, 159 reports, 81 state and territory directors, 45 research, 68, 78–9, 80, 82 State International Education Marketing Forum, 100 surveys, 75 State of the Industry 2014 (tourism), 80 visa changes, 72, 76–7 State of the Service report, 157 visitor statistics, 68–70 State Tourism Satellite Accounts 2013–14, 80 visitor survey reports, 78, 79, 80 ‘Stay in Touch’ programme, 141 Tourism 2020 strategy, 8, 68, 70–2, 73, 75, 76, 77, 78, Strategic Centre for Leadership, Learning and 100 Development, 153 Implementation Plan (2015–2020), 72, 75, 101 Study in Australia website, 10, 50, 52, 53 Tourism and Transport Forum, 75, 101 Survey of Australian Government Payments to Small Tourism Australia, 68, 70, 73, 74, 75, 79, 84, 85, 101, 111 Business, 164 Tourism Demand-Driver Infrastructure (TDDI) Survey of Tourist Accommodation, 2014–15, 75 programme, 75, 77 Switzerland, 12, 73, 161 tourism employment plans (TEPs), 76 Tourism Forecasts: Autumn 2014, 80 Tourism Industry Potential, 2020, 78, 80, 101 T Tourism Industry Regional Development Fund (TIRF) T-QUAL Grants Programme, 77 grants programme, 77 TAFE Directors Australia, 56 tourism infrastructure Taiwan, 73 foreign direct investment, 59, 63, 73–4 Takeda, 64 Tourism Investment Monitor 2015, 80 Tasmanian Department of State Growth, 108 Tourism Major Project Facilitation service, 74 Tasmanian Regional Tourism Package, 77 Tourism Ministers’ Meeting, 72, 75, 100

278 Australian Trade Commission Annual Report 2014–15 05

Tourism Regional Profiles 2013–14, 80 W Tourism Research Australia (TRA), 68, 78–9, 80 Wales, Karen, 67 trade and investment ministers’ meetings, 99 Wanda Group, 74 Trade Commissioner Development Programme, 10, Watson, David, 66 153 web accessibility, 167 trade development schemes. see Export Market website, 38, 109. see also Study in Australia website Development Grants (EMDG) scheme Western Europe (incl. UK), 58, 59 TradeStart network WestSide Corporation, 87 Adviser, Melbourne, 41 White Paper on Developing Northern Australia: Our locations, 244–5 North, Our Future, 8, 11, 63, 64, 72, 102 partners, 244 whole-of-government strategy programme, 2, 40–1, 88, 162 foreign direct investment, 57, 74 Trans-Pacific Partnership Agreement, 64 state and territory directors, 45 trans-Tasman visa arrangements, 72 state and territory governments, 62, 103 Transition to Work disability employment programme, tourism, 78 157 Why ASEAN and why now? Insights for Australian business, 91 Why Australia—2015 Benchmark Report, 58, 110 U wine industry, 96 United Arab Emirates, 43, 105 Winning Investment in Australia training courses, 60, United Kingdom, 58, 69, 73, 121 153–4 United Nations Women’s Empowerment Principles, women 159 in Austrade, 159–60 United States, 35, 49, 58, 69, 73, 92–3, 121 executive decision-making, 137 University of Melbourne, 46, 47 UN empowerment principles, 159 University of Sydney, 10, 48 Women, global trade and what it takes to succeed, 46 University of Tasmania, School of Medicine, 97 Women in Global Business (WIGB), 45–6 University of Western Australia, 97 Woodside, 98 work health and safety, 131, 160, 248–9 Work Health and Safety Act 2011, 160, 248, 249 V workforce planning, 148 values, 141, 156 working holiday visa reforms, 8, 11, 76, 77 Victoria University, 86 Workplace Relations Committee, 146 Victorian Department of Economic Development, workplace support, 160 Jobs, Transport and Resources, 108 world trade. see global value chains Vietnam, 45, 54, 89, 90–1 WorleyParsons, 98 Vietnam Commerce University, 54 visas investor programmes, 8, 11, 101, 103, 141, 162, 167 Z reforms, 8, 11, 72, 76–7 Zurich office, 12, 161 trans-Tasman arrangements, 72 visits, foreign government representatives, 43, 106–7

Index 279 Auditors and other information

Internal auditor Annual report production

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All reporting is at 30 June 2015 unless otherwise specified.

280 Australian Trade Commission Annual Report 2014–15 Austrade locations

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282 Australian Trade Commission Annual Report 2014–15