2.1
This chapter outlines key matters arising from the Australian Federal Police (AFP) Annual Report 2017–18, including compliance with legislative requirements, performance against key performance indicators (KPIs) and issues discussed at the public hearing on 6 December 2019.
About the AFP
2.2
The AFP is the Australian Government's primary policing agency. Section 8 of the Australian Federal Police Act 1979 (the AFP Act) outlines the functions of the AFP, including:
the provision of police services in relation to laws of the Commonwealth, the property of the Commonwealth (including Commonwealth places), and the safeguarding of Commonwealth interests;
the provision of policing in the Australian Capital Territory (ACT) and the Jervis Bay Territory;
protective and custodial functions as directed by the Minister;
the provision of police services and police support services to assist or co-operate with an Australian or foreign law enforcement agency, intelligence or security agency, or government regulatory agency; and
the provision of police services and police support services in relation to establishing, developing and monitoring peace, stability and security in foreign countries.
2.3
The AFP also performs functions under the Witness Protection Act 1994 and the Proceeds of Crime Act 2002.
Annual report compliance
2.4
The AFP is required to prepare an annual report under section 67 of the AFP Act:
The annual report prepared by the Commissioner and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include particulars of:
(a)
the AFP conduct issues that were dealt with under Part V [Professional standards and AFP conduct and practices issues] of this Act during that period; and
(b)
the action that was taken, during that period, in relation to AFP conduct issues that were dealt with under Division 3 of Part V [dealing with AFP conduct or practices issues] of this Act.
2.5
As a Commonwealth entity, the AFP must comply with the Public Governance, Performance and Accountability Act 2013 (PGPA Act), which requires Commonwealth entities to provide an annual report to the entity's responsible minister for presentation to the Parliament on the entity's activity during the reporting period, and with the PGPA Rule 2014.
2.6
Under the PGPA Act, a Commonwealth entity is also required to prepare annual performance statements and include a copy of these statements in its annual report that is tabled in the Parliament. The AFP's annual performance overview is included at chapter 3 of the Annual Report 2017–18.
2.7
Based on the committee's assessment of Annual Report 2017–18, these requirements have been fulfilled.
2.8
In addition to the agency's 2017–18 annual performance statements, the Annual Report 2017–18 also includes the following annual reports on:
the National Witness Protection Program pursuant to section 30(2) of the Witness Protection Act;
unexplained wealth investigations and proceedings pursuant to section 179U of the Proceeds of Crime Act; and
delayed notification search warrants pursuant to Part IAAA Division 6 section 3ZZFB of the Crimes Act 1914.
2.9
The report on the authorities for assumed identities pursuant to section 15LD(1) of the Crimes Act 1914 is included in a separate document to the Annual Report 2017–18.
Key performance features in 2017–18
2.10
The Annual Report 2017–18 notes the following results arising from its analysis of its performance over 2017–18:
the AFP delivered public value for money by providing a return on investment of $16 for every dollar invested in combatting transnational crime based on investigations finalised in 2017–18;
98 per cent of investigations that went to court resulted in at least one conviction;
206 AFP disruptions were instrumental in inhibiting the business of criminal entities;
six out of nine airports met response times for all four priority areas; and
the results of the satisfaction survey show that the AFP's partners and stakeholders has been around 90 per cent for the last seven years.
2.11
The Annual Report 2017–18 further notes the key challenges for the AFP meeting its operational performance:
increased demand for AFP's services, including a predicted growth in volume of referrals across all crime types, and a need to respond more often to major operations that create large surges in resource use;
the need to continually develop the AFP's capacity in technology and innovation, maintain partnerships across Governments and utilise a flexible workforce model to respond to high priority operations; and
increased complexity of work, including the need for more specialists in science and technology.
2.12
In his introduction to the Annual Report 2017–18, the then AFP Commissioner,
Mr Andrew Colvin APM OAM, discussed how the AFP's operating environment is challenged by the exploitation of emerging technologies by criminals who have 'more reach, more potential victims and more anonymity and geographic protections than ever before'.
2.13
The next part of this report considers the AFP's key performance features in three main areas—operations, capability and capacity.
Operations
2.14
The AFP's Operation function provides a law enforcement investigative response in areas such as illicit drugs, people-smuggling, victim-based crime, cybercrime, financial crime, money laundering and cybercrime. The Annual Report 2017–18 report identifies a number of key operational outcomes in 2017–18, including:
progression of 276 cases to court, with a conviction rate of 96 per cent;
seizure of over 17 tonnes of illicit drugs domestically (an increase from the 9.9 tonnes seized in 2016–17);
165 offshore disruptions, of which 26 per cent were related to drug trafficking; and
arrest and charging of 58 offenders of child sexual exploitation with 285 offences.
2.15
The AFP participates in numerous Commonwealth multi-agency task forces, including the Criminal Assets Confiscation Taskforce, the National Anti-Gangs Squad, the Serious Financial Crimes Taskforce, the Fraud and Anti-Corruption Centre, and the Trade Union Taskforce.
International Operations
2.16
As at 30 June 2018, the AFP had 248 personnel located in 33 countries around the world other than Australia and its territories. In the public hearing on 6 December 2019, the AFP highlighted how changes in the work of organised crime groups across different countries necessitates a collaborative approach for law enforcement:
One thing we've seen, particularly over the last five years, is a change in the way organised crime groups operate. Certainly five years ago, if you were an Italian organised crime group you only operated within your own lane; you only operated with Italian organised crime. If you were Middle Eastern, it would be the same. What we're seeing now is basically whoever can do the job is getting involved in undertaking the crime.
2.17
AFP officers stationed overseas are posted for a minimum of two years with the option of adding an additional two years depending on the location and the performance of the officer. The AFP underlined that it is necessary to have a minimum two years posting to effectively build relationships with local officials. AFP officers posted overseas have official passports (usually a diplomatic passport) and are approved by the government in the host country prior to arrival. Australia has Memorandums of Understandings (MOUs) with the host countries and the AFP works closely with DFAT to facilitate these processes. AFP officers work within embassies, high commissions, consuls or similar organisations.
2.18
The type of work the AFP does overseas varies depending on the location. In places like Myanmar and Cambodia, AFP officials take on a hands-on role in building capability and skill in foreign law enforcement. In contrast, in countries like China and America the work is concentrated on operations with a focus on intelligence sharing on different crime types. The AFP noted that there is a good level of cooperation between AFP officials and the local law enforcement officials.
Transnational, serious and organised crime
2.19
Combatting transnational, serious and organised crime (TSOC) is a key area of focus for the AFP and it is estimated that around 70 per cent of Australia's serious criminal targets live or have links overseas.
2.20
In Australia, TSOC is driven by high levels of demand for illicit drugs. The price paid for illicit drugs in Australia is among the highest in the world. Australians spend about $9 billion and consume more than 15 tonnes of illicit drugs each year.
2.21
Combatting TSOC is challenging due to the sophisticated business model of TSOC gangs who the AFP described as 'operating more effectively globally, as global businesses, than ever before in the history of our civilisation.' In addition, the advent of new technologies, including secure communications and cryptocurrencies, make it ever more challenging for the AFP to track and disrupt TSOC.
2.22
Operation Veyda was a key investigation for the AFP in the reporting period. Operation Veyda was a complex investigation into TSOC syndicates, involving money laundering, illicit drugs and illegal tobacco imports. Key outcomes of the investigation include:
17 arrests over three continents;
seizure of 1.8 tonnes of MDMA, 136 kilograms of cocaine and 15 kilograms of crystal methamphetamine, with an estimated street value of $810 million; and
the seizure of $5.5 million.
2.23
Operation Veyda involved five law enforcement agencies in Australia, and nine partner law enforcement agencies in the United Arab Emirates (UAE), the Netherlands, the United Kingdom and the United States, demonstrating the value of strong and enduring partnerships with domestic and international enforcement partners.
Committee view
2.24
The committee notes with concern the growing impact of TSOC on Australia, and commends the AFP for its efforts to develop partnerships with international law enforcement agencies, including through specific operations such as Operation Veyda. The committee encourages the AFP to continue its work in developing strong partnerships to combat TSOC.
2.25
The committee further notes the results being achieved by the AFP, with a reported return on investment of $16 for every dollar invested in the AFP combatting transnational crime. These results indicate that increased investment in addressing transnational crime may be of great benefit to Australia and should be considered.
Capability
2.26
The Capability group comprises the AFP's technical and specialist functions, including ICT capabilities to support operational and other AFP activities; forensics and intelligence; and covert and specialist response groups.
2.27
According to the Annual Report 2017–18, significant achievements for the group for the 2017–18 financial year include:
the launch of the Technology and Innovation Strategic Plan 2017–2020;
the establishment of an innovation platform, a central coordination and collaboration platform when all AFP members can raise ideas for change and crowdsource advice and solutions; and
the formation of the AFP Futures Centre.
Capacity
2.28
The role of the Capacity group is to ensure that the AFP has the 'financial and human resources to respond to current and emerging requirements and is particularly focused on creating an agile, diverse and inclusive workforce'.
2.29
Key areas of work for the Capacity group in 2017–18 include:
the implementation of recommendations from the Cultural Change: Gender Diversity and Inclusion in the Australian Federal Police report; and
the development and launch of the Health and wellbeing strategy.
2.30
Further detail on these initiatives is provided below.
Culture and organisational health
2.31
On 22 August 2016, Mr Colvin released the Cultural Change: Gender Diversity and Inclusion in the Australian Federal Police report (Cultural Change report). The release of the report followed an independent review by the former Sex Discrimination Commissioner, Ms Elizabeth Broderick AO, into the AFP's culture and diversity, focusing on gender, sexual harassment, bullying and exclusion.
2.32
The AFP accepted and committed to implement all 24 recommendations made in the Cultural Change report.
2.33
The 2017–18 annual report indicated that 11 of the 24 recommendations from the Cultural Change report had been implemented. During the 2017–18 reporting period this included:
the launch of the AFP Staying in Touch Program on 19 December 2017 to provide employees with the opportunity to remain connected to the workplace during extended time away from the AFP on leave or secondment; and
the continuation of the Safe Place team which supports current and former AFP staff who are experiencing, have experienced or are aware of sexual assault, sexual harassment or serious bullying and harassment in the workplace. In 2017–18 there were 313 referrals to the Safe Place team.
2.34
As at 30 June 2019, 18 recommendations were considered complete. The remaining six recommendations were either nearing completion or being reviewed to determine its status or if it remained ‘fit for purpose’.
2.35
Between the release of the Cultural Change report in 2016 to mid- 2019, overall gender balance in the AFP increased from 35.2 per cent to 38 per cent. Over this period, the percentage of females at the Executive Level in the AFP also increased from 25.3 per cent to 33.9 per cent and in the Senior Executive Service from 27.2 per cent to 36.5 per cent.
Health and wellbeing of AFP employees
2.36
Several inquiries and reviews, including the Australian National Audit Office Report No. 31 Managing Mental Health in the AFP, an internal review by Phoenix Australia, and the Senate Inquiry into the mental health of first respondents, have revealed that there are widespread mental health issues among AFP staff and insufficient mental health supports available for staff.
2.37
In response to the abovementioned inquiries and reviews, in May 2018 the AFP released a Health and Wellbeing Strategy. The strategy details the AFP Health and Wellbeing Model, which provides for a long-term commitment to physical, psychological, organisational and social health, for all employees across their AFP lifecycle, and includes three strategic objectives:
(1)
Health Protection: All staff committed to self-care and leaders are educated and supportive of delivering a culture of health.
(2)
Health Intervention: Timely access, irrespective of location, to appropriate support options for all staff.
(3)
Health Frameworks: A governance structure of standards and quality assurance, partnered with industry experts.
2.38
The AFP Health and Wellbeing Implementation Plan is an accompanying document that details the specific projects, timelines and responsibilities to achieve the strategy. The development of an evaluation framework for the strategy is scheduled to commence in 2020.
2.39
The Health and Wellbeing Strategy is being phased in over a five year period. According to the AFP, initiatives have so far resulted in positive impacts on both stigma associated with reporting a physical or psychological injury, and a stronger commitment to early intervention. Data from the latest quarter (August to October 2019) shows a:
92 per cent increase from last quarter in the number of services provided through the Early Access program, which represents a 95 per cent increase in total costs for the program; and
an increase of 9 per cent in the overall number of workplace incidents reported from last quarter. Physical and psychological based injuries increased by 7 per cent and 17 per cent respectively.
2.40
The AFP updated the committee on a number of new programs and changes that have been implemented to better support staff, including:
continuing support to staff members during extended time away from the AFP on leave or secondment through the abovementioned Staying in Touch program;
partnering with Comcare to deliver the specialist Road to Mental Readiness program, a mental health program for first respondents; and
increasing the number of mental health practitioners in the AFP.
2.41
The AFP told the committee that increased scrutiny and accountability over policing, coupled with a tendency for police to overinvest in their work, is placing a lot of pressure on AFP officers. To counter this, the AFP aims to have a suite of services available to support staff. In addition, the AFP is working to increase the number of AFP media releases that acknowledge and highlight the good work of officers.
Committee view
2.42
The committee acknowledges that the work undertaken by AFP officers carries an inherent risk of harm and injury, and the challenges this creates for the AFP in meeting its duty of care to support the physical, emotional and mental health of its staff.
2.43
The committee notes, in particular, that in recent years there has been a growing awareness of the mental health risks faced by those working in policing and first responder organisations, including the AFP.
2.44
The committee acknowledges that the AFP is currently in the process of developing a new police health model that draws upon the experience of other police jurisdictions and first responders. The committee will closely monitor the AFP's progress in this regard going forward.
Contribution to law reform and parliamentary inquiries
2.45
The AFP has continued its engagement with various parliamentary committees. The Annual Report 2017–18 provides a list of inquiries that the AFP participated in during the reporting period.
Reporting against performance criteria
Changes to the performance criteria
2.46
The AFP has two outcomes: Outcome 1 comprising Program 1.1 (Federal Policing and National Security) and Program 1.2 (International Police Assistance); and Outcome 2, comprising Program 2.1 (ACT Community Policing).
2.47
The AFP's performance framework has changed since the 2016–17 annual report. In 2016–17, there were 9 Key Performance Indicators (KPIs) that were anchored to the Portfolio Budget Statement (PBS) outcome only. In 2017–18, the performance criteria (no longer referred to as KPIs) were grouped against the AFP's main activities—National Policing, International Operations, Protection and Community Policing. Excluding community policing, the Outcome 1 performance framework now has 18 individual performance measures. Each performance criteria is addressed in detail in Chapter 3 of the Annual Report 2017–18.
2.48
Major changes to the performance criteria in 2017–18 included:
(a)
expanding the scope of the community confidence performance criteria. The methodology and data collection of the survey changed and this measure now includes a whole-of-Australia perception of community confidence and safety against Commonwealth crimes;
(b)
replacing Key Performance Indicator (KPI) 3, ‘percentage of counter-terrorism investigations that result in a prosecution, disruption, diversion or intelligence referral outcome’, with two new performance criteria—Prevention and Disruption; and
(c)
extending the scope of the return on investment measures to include confiscation of assets and international drug seizures.
Disruption and prevention
2.49
Two new performance criteria, 'disruption' and 'prevention' were introduced for 2017–18. The AFP have included disruption in the performance criteria to reflect the broader range of operational tactics and strategies that are used to target transnational crime where prosecution (in Australia) might not be feasible or cost effective. As this was the first time disruption was measured, there was no target set for the number of disruptions. Across 2017–18, there were 206 disruptions across all crime types, 165 from AFP International Operations and 41 from AFP National Policing.
2.50
The new prevention criterion tracks the use of alternative strategies and operational tactics to prevent crime before it occurs. The target for the prevention criterion for 2017–18 was to 'successfully target crime prevention', and the AFP used case studies to demonstrate how they achieved this target. In 2017–18, these case studies included work with Australian Cyber Security Centre partners, an intelligence probe to identify and disrupt 'money-muling', and the delivery of the ThinkUKnow cyber safety presentations to school children.
2.51
Much of the AFP's disruption work is conducted offshore, in working with international partners to prevent terrorist attacks and illicit drug importation. The police capacity programs that the AFP delivers in the Pacific are also key in disruption efforts by improving technical capacity and awareness around crime prevention.
2.52
The AFP highlighted that outcomes in disruption and prevention are connected and as the AFP's capacity and capability to undertake disruption activity increases, so too will benefits in the prevention space.
2.53
The nexus between disruption and prevention activities is demonstrated through the work of the Australian Centre to Counter Child Exploitation (ACCE), announced in March 2018. The ACCE brings together key stakeholders, including agencies that work in the prevention space, in harm reduction and in policing, to drive a collaborative and collective approach to counter child exploitation. Mr Karl Kent, AFP Deputy Commissioner, remarked:
I think this [the holistic approach of the ACCE] could be a model that could extend to other social challenges that we have, where we are not finding our conventional model—although every agency in its pillar is achieving its outcome. These could be models for success against other threats and I think that is something that's really worth exploring in the future.
Committee view
2.54
The committee commends the AFP for the inclusion of the disruption and prevention performance criteria in the 2017–18 reporting period. These measures demonstrate how the AFP is implementing a more holistic approach to their operations that recognises the necessity of a broad range of operational tactics and strategies to combat crime.
2.55
The committee is interested in seeing how the AFP continue to develop their disruption and prevention work and will continue to monitor this progress closely.
Performance against each criterion
2.56
This section considers the AFP's performance against the 19 performance measures for Programs 1.1 and 1.2. The AFP's performance under Outcome 2 (ACT Policing) is published in a separate report and is not considered here.
2.57
The Annual Report 2017–18 states that '[the AFP's] Outcome 1 performance framework has 19 individual performance measures across four activities—National Policing, International Operations, Protection and Community Policing'. These performance criteria are set out in the AFP's Corporate Plan 2017–18. While each of the 19 performance criteria is reported against in detail in the Annual Report 2017–18 (pages 28 to 60 for Outcome 1), the summary at Table 3.1: Summary results against AFP 2017–18 performance criteria of the Annual Report 2017–18 (page 27) could be more clearly set out. As it stands, the number of 'traffic light' assessments in Table 3.1 exceeds the number of criteria. While there are evidently good reasons for this (for example, the 'response to aviation incidents within priority time frames', while a single criterion, has been disaggregated into four priority levels in Table 3.1), this summary presentation of performance results could be better explained or set out in future to avoid any unnecessary confusion.
2.58
The AFP met all but one performance criterion for the 2017–18 financial year. The AFP did not meet their goal for the community confidence criterion.
Community confidence
2.59
In 2016-17, community confidence was measured through KPI 4—level of community confidence in the contribution of the AFP to aviation law and security. This data was collected through the AFP Airport Consumer Confidence Survey.
2.60
The community confidence measure was expanded in 2017–18. In 2017–18, the AFP conducted a phone survey of 1000 members of the general public to gauge the level of community confidence in the AFP's contribution to law enforcement and national security. The scope of this survey was much wider than the previous surveys conducted.
2.61
For 2017–18, the AFP set a goal of having 75 per cent of respondents rate their confidence in the AFP as eight or more out of ten. As only 62 per cent of respondents rated confidence in the AFP as eight or more out of ten, the AFP did not meet this target.
2.62
The survey identified a need for ongoing communication from the AFP to the wider community. Only one in ten respondents understood the work of the AFP and 38 per cent had virtually no knowledge about the responsibilities of the AFP.
2.63
During the public hearing, the AFP noted that the new Commissioner, Commissioner Reece Kershaw, is committed in strengthening the connection between the AFP and the community including improving community understanding of the AFP. Recent changes include the appointment of media liaison officers in Sydney, Melbourne and Perth, and an emphasis on developing the AFP's presence on its social media pages. The AFP highlighted that public engagement has been a challenge for the AFP in the past:
Some police officers find that difficult to do—to actually engage with the media and engage with the public. I wouldn't say we're a secretive organisation, but…we have been one of those organisations that has been a little bit reluctant to engage and we need to change that….There's also an aspect of national security culture that means people are very aware of what information they need to retain rather than share with community on some of these issues. So that can build barriers to community engagement, and they are the things that we intend to address.
Committee view
2.64
The committee is pleased to see efforts to improve community understanding of the work of the AFP. The committee will continue to closely monitor how the AFP works to improve understanding of the AFP and community confidence in their operations.
Staffing and financial management
2.65
As at 30 June 2018, the AFP had 6397 staff, including 3235 sworn police, 2423 professional staff and 723 protective services officers. This is 143 fewer than the same time in 2017 and 260 fewer than in June 2016.
2.66
The vast majority of AFP workers have served for 6 or more years and the AFP has a low attrition rate for sworn officers. The ageing workforce poses challenges for the AFP in terms of people's planned retirement and the need to attract younger people. As at 1 April 2019 only 11 per cent of the AFP workforce were under 30 years old. 10 per cent of the workforce were 55 and above.
2.67
The AFP highlighted the increasing need for specialist staff, including digital forensics experts and individuals with high level ICT skills:
The nature of our investigations these days is more complex. Most of them involve significant digital forensic evidence and the like. Our specialist teams of investigators need to incorporate a multi-disciplined approach. We often need specialists who are not police officers but digital forensic specialists or have other ICT skills highly relevant to the investigations we're conducting in cyber environments and the like. We typically have a different mix in the AFP, compared to state police forces, around the number of specialists in our organisation who are not sworn police officers, in order to provide a multi-disciplined team approach to the investigative challenges we face in this environment.
2.68
The majority of this specialist work is conducted in-house due to the nature of the work and the need for security clearances. The AFP has developed a specialist framework within the Enterprise Agreement so they can attract and retain high-level expert staff.
2.69
The Annual Report 2017–18 notes that the overall gender balance has increased across all cohorts including that the proportion of women in Senior Executive Service (SES) roles has increased from 31.5 per cent to 35.4 per cent since the 2016–17 reporting period and the proportion of women in protective service officer roles has increased from 14.8 per cent to 16.5 per cent in the same period.
2.70
In 2016, the then commissioner Mr Colvin set a target to have a 50/50 split of male to female officers by 2026. As at 30 June 2018 the overall proportion of women in the AFP workforce is 37 per cent (up from 36 per cent in the previous year).
2.71
In 2017—18, as part of the AFP’s commitment to diversity and to achieving a gender balanced workforce, de-identified recruitment processes were used for three recruitment processes–one for sergeants and two for Executive Level positions–to minimise unconscious bias and improve fairness and equity in assessing applications. The AFP also engaged in social media campaigns to target women between the ages of 18 and 30 for policing and protective services roles. There were more than 1000 applications and a higher than usual proportion of applicants met the recruitment criteria.
2.72
The AFP's current initiatives to meet the 2026 goal of a 50/50 gender balance, include:
job ads for bulk rounds to state that ‘female candidates are encouraged to apply’ and ensure that all recruitment material portrays a mix of genders;
undertaking market research and develop communication and attraction strategies for the recruitment of entry level police and protective service officers. This work is expected to be finalised in June 2020; and
state-based HR teams directly contacting girls-only schools across Australia in order to promote policing as a career option.
2.73
The committee notes that since the 2017–18 reporting period the AFP has also made a number of further changes to improve recruitment processes including shifting the recruitment arm of the AFP to sit alongside the training college, appointing chief learning officers and developing targeted marketing to help recruit people from different backgrounds including First Nations.
Committee view
2.74
The committee welcomes the actions taken by the AFP to improve gender balance in its workforce. However, the committee also notes that there remains significant work to do in this area if the AFP is to meet set targets. The committee will continue to work with the AFP to monitor their progress in this area.
Financial management
2.75
In the Annual Report 2017–18, the AFP recorded a departmental comprehensive loss of $129 million. Excluding the impact of unfunded depreciation expenses of $84 million, the AFP recorded a deficit for the year of $45 million. The Annual Report 2017–18 notes that:
The deficit result was due to higher operational costs in response to a heightened threat and response level and high investigative activity, together with implementing reform and remediation of technology and infrastructure, additional staff on-costs in relations to superannuation and a technical accounting adjustment to the recognition of appropriation.
2.76
The departmental operating income for 2017–18 was $1301 million ($1304 million in 2016–17) comprising:
$1016 million in government appropriation ($1021 million in 2016–17);
$166 million from the ACT government for policing services ($163 million in 2016–17); and
$119 million in other revenue ($120 million in 2016–17).
2.77
The AFP received an additional $70 million ($30 million in 2016–17) in government appropriation for departmental capital expenditure and $75 million in equity injections. The AFP also administered $16 million in expenses on behalf of the Commonwealth government during 2017–18 (an increase of $4 million compared to 2016–17).