Chapter 1

Introduction

1.1
Standing orders require the Senate Environment and Communications Legislation Committee (the committee) to report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year.1
1.2
Due to the revised parliamentary sitting pattern for 2022, the committee's first and second reports on annual reports were due to be tabled in the Senate on 1 August 2022 and 7 September 2022 respectively. As a result, the committee has chosen to combine the two reports, by providing an overview of selected annual reports of agencies within the committee's allocated portfolios, which were tabled in the Senate between 1 May 2021 and 30 April 2022.
1.3
Annual reports inform the Parliament, stakeholders and other interested parties of the operations and performance of public sector departments, agencies and companies. They are a primary accountability mechanism. Additionally, annual reports are important reference documents and form part of the historical record of the Commonwealth.2

Terms of reference

1.4
Under standing orders, the annual reports of certain departments and agencies are referred to the committee for examination and assessment. The committee is required to:
(a)
Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;
(b)
Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration;
(c)
Investigate and report to the Senate on any lateness in the presentation of annual reports;
(d)
In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;
(e)
If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with the examination of estimates;
(f)
Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year;
(g)
Draw the attention of the Senate to any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and
(h)
Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.3

Allocated portfolios

1.5
In accordance with the resolution of the Senate on 4 July 2019, as amended on 13 February 2020, when the annual reports were tabled, the committee was responsible for the examination of the expenditure and outcomes of the following portfolios during the reporting period:
Agriculture, Water and the Environment portfolio, excluding Agriculture and Water;
Industry, Science, Energy and Resources portfolio, excluding Industry, Science and Resources; and
Infrastructure, Transport, Regional Development and Communications portfolio, excluding Infrastructure, Transport and Regional Development.4
1.6
Following the Federal election, a new administrative arrangements order was made on 1 June 2022, which consolidated the portfolios for which the committee is responsible into two departments. In accordance with the resolution of the Senate on 27 July 2022, the committee is now responsible for the following portfolios, which will be examined in future reports:
Climate Change, Energy, the Environment and Water; and
Infrastructure, Transport, Regional Development, Communications and the Arts (Communications and the Arts functions only).5

Reports examined

1.7
This report examines the following reports, tabled in the Senate or presented out-of-session to the President of the Senate and referred to the committee between 1 May 2021 and 30 April 2022:

Non-corporate Commonwealth entities

Department of Agriculture, Water and the Environment – Annual Report 2020–21;
Department of Industry, Science, Energy and Resources – Annual Report 2020–21;
Department of Infrastructure, Transport, Regional Development and Communications – Annual Report 2020–21;
Australian Communications and Media Authority and the Office of the eSafety Commissioner – Annual Reports 2020–21;
Bureau of Meteorology – Annual Report 2020–21;
Clean Energy Regulator – Annual Report 2020–21;
Climate Change Authority – Annual Report 2020–2021; and
Great Barrier Reef Marine Park Authority – Annual Report 2020–21.

Corporate Commonwealth entities

Australia Council for the Arts – Annual Report 2020–21;
Australian Broadcasting Corporation – Annual Report 2021;
Australian Film, Television and Radio School – Annual Report 2020–21;
Australian National Maritime Museum – Annual Report 2020–21;
Australian Postal Corporation – Annual Report 2021;
Australian Renewable Energy Agency – Annual Report 2020–2021;
Clean Energy Finance Corporation – Annual Report 2020–21;
Director of National Parks – Annual Report 2020–21;
National Film and Sound Archive of Australia – Annual Report 2020–2021;
National Gallery of Australia – Annual Report 2020–21;
National Library of Australia – Annual Report 2020–21;
National Museum of Australia – 20–21 Annual Report;
National Portrait Gallery of Australia – Annual Report 2020/21;
Screen Australia – Annual Report 2020/21;
Special Broadcasting Service – Annual Report 2021; and
Sydney Harbour Federation Trust – Annual Report 2020–2021.

Commonwealth companies

Bundanon Trust – Annual Report 2020–2021;
Creative Partnerships Australia Ltd – Annual Report 2020/21;
NBN Co Limited – 2021 Annual Report; and
Snowy Hydro Limited – Annual Report for the year ended 30 June 2021.

Statutory office holders or bodies

Classification Board and Classification Review Board – Annual Reports 2020–21;
Copyright Agency – Annual Report 2020–21;
Public Lending Right Committee – Annual Report 2020–21; and
Screenrights – Annual Report for the year ended 30 June 2021.Non-statutory bodies
Independent Scientific Committee on Wind Turbines – 2020 Annual Report; and
Office of the National Wind Farm Commissioner – 2020Annual Report.6

Reports not examined

1.8
The committee is not obliged to report on Acts, statements of corporate intent, surveys, policy papers, budget documents, corporate plans or errata. The following documents were referred to the committee between 1 May 2021 and 30 April 2022, but are not examined in this report:
Department of Agriculture, Water and the Environment – Minister's Priority Products List 2021–2022;
Department of Agriculture, Water and the Environment – Fourth Product Stewardship (Oil) Act 2000 Review – Final Report;
Department of Agriculture, Water and the Environment – National Environment Protection (Used Packaging Materials) Measure 2011 – Review of the co-regulatory arrangement – Final report ;
Wet Tropics Management Authority – Annual Report 2020–21;
Wet Tropics Management Authority – State of Wet Tropics 2020–2021;
Clean Energy Regulator – 2020 December Quarterly Carbon Market Report;
Clean Energy Regulator – 2020 Annual Statement – Large scale Renewable Energy Target met;
Department of Infrastructure, Transport, Regional Development and Communications – Review of the operation of the local programming requirements for regional commercial television broadcasting licences; and
Australian Communications and Media Authority – Review of the Commercial Broadcasting (Tax) Act 2017.

Annual reporting requirements

1.9
A performance reporting framework is established for all Commonwealth entities and companies by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The performance framework of the PGPA Act requires all Commonwealth entities to measure and assess their performance according to the requirements prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).7
1.10
The PGPA Act requires all Commonwealth entities to prepare an annual performance statement and include those statements in their annual reports.8 Entities use the annual performance statements to report on the results achieved against the targets, goals and measures established at the beginning of a reporting year in corporate plans and in any portfolio budget statements that were prepared for the reporting period. The PGPA Rule contains the minimum requirements that must be included.
1.11
Below is a summary of the legislative authority and requirements for the different types of bodies under which annual reports are prepared:
Non-corporate Commonwealth entities: PGPA Act, section 46, and the PGPA Rule, subdivision 3A(A); for portfolio departments, the Parliamentary Service Act 1999, section 65; and for statutory bodies, relevant enabling legislation.
Corporate Commonwealth entities: PGPA Act, section 46, and the PGPA Rule, subdivision 3A(B); and for statutory bodies, relevant enabling legislation.
Commonwealth companies: PGPA Act, section 97, which also refers to requirements under the Corporations Act 2001 and the PGPA Rule, part 3-3; and for statutory bodies, relevant enabling legislation.
Statutory office holders and statutory bodies: statutory office holders or bodies are engaged or employed under an Act, which may prescribe annual reporting requirements pursuant to the office or body.
Non-statutory bodies: the annual reporting requirements are contained in the government response to the Senate Standing Committee on Finance and Public administration's Report on non-statutory bodies.9

Changes to the PGPA Rule

1.12
The Public Governance, Performance and Accountability Amendment (Digital Transformation Agency) Rules 2021 were registered on 29 June 202110. Changes commencing 1 July 2021 amended Schedule 1 of the PGPA Rule by: amending the purposes of the Digital Transformation Agency (DTA), including in relation to strategic and policy leadership, whole of government and shared information and communication technology investments and digital service delivery11; and repealing the clause prescribing that the DTA sunset as a listed entity for the PGPA Act on 30 June 2022.12
1.13
On 6 May 2021, a new Flipchart of PGPA Act Commonwealth entities was released to reflect a number of changes, including the renaming of Australian Business Arts Foundation Ltd (Creative Partnerships Australia) to Creative Partnerships Australia Ltd.13

Timeliness

1.14
As part of its review of annual reports, the committee is required to investigate and report on any lateness in the presentation of annual reports.14 In assessing the timeliness of the presentation of annual reports, the committee assesses the presentation against the requirements of the PGPA Act, the PGPA Rule and other legislative requirements.

Presentation to ministers

1.15
The PGPA Act requires the provision of an annual report of a Commonwealth entity, including corporate and non-corporate entities, to the responsible minister by the 15th day of the fourth month after the end of the reporting period for the entity. For most agencies, this translates to 15 October each year. This part of the PGPA Act does not, however, provide a timeframe for the minister to present the report to the Parliament.15
1.16
The arrangements for Commonwealth companies differ to some degree. The PGPA Act sets out the requirements for the provision of annual reports of Commonwealth companies to the responsible minister. In general, this amounts to four months after the end of the reporting period for each company.16

Tabling in Parliament

1.17
The PGPA Rule states that annual reports for corporate Commonwealth entities, non-corporate Commonwealth entities and Commonwealth companies must comply with the Department of the Prime Minister and Cabinet's Guidelines for the Presentation of Documents to the Parliament.17 In addition, the Department of Finance's resource management guides for corporate and non-corporate Commonwealth entities advise:
Normally annual reports are tabled on or before 31 October and it is expected annual reports are tabled prior to the October Estimates hearings. This ensures annual reports are available for scrutiny by the relevant Senate standing committee.18
1.18
Entities reporting in accordance with their own legislation are often required to prepare for the relevant minister their annual report 'as soon as is practicable' after the end of the particular period to which the report relates. The committee draws attention to the Acts Interpretation Act 1901 which stipulates that where no date for providing a report to a minister is specified, the report should be provided no more than six months after the reporting period, and the minister must present the report to the Parliament within 15 days after the minister receives it.19
1.19
Where a deadline for presenting an annual report cannot be met, a Commonwealth entity or company can seek an extension of time to report under the Acts Interpretation Act 1901 by advising the responsible minister of the reasons why the entity cannot comply with the deadline. The responsible minister is required to table this application and a statement specifying whether the extension was granted and the reasons for the extension in both houses of the Parliament.20

Timeliness of reports examined

1.20
In its Annual reports (No. 1 of 2021) tabled on 24 February 2021, the committee noted that no entities tabled their annual reports prior to the commencement of estimates on 19 October 2020, 16 entities tabled their annual reports on the first day of estimates, and 12 entities did not meet the recommended timeframe.
1.21
The committee notes that the timeliness of the presentation of annual reports improved substantially this year. Of the Commonwealth entities within the environment, energy, communications and the arts sub-portfolios, 25 entities tabled their annual reports prior to the commencement of supplementary budget estimates on 25 October 2021, 2 entities tabled their annual reports on the first day of estimates, and 7 entities did not meet the recommended timeframe.
1.22
The following agencies tabled annual reports in the House of Representatives and/or the Senate before the committee's supplementary budget estimates hearings commenced on 25 October 2021:
Department of Agriculture, Water and the Environment;
Department of Industry, Science, Energy and Resources;
Department of Infrastructure, Transport, Regional Development and Communications;
Australia Council for the Arts;
Australian Broadcasting Corporation;
Australian Communications and Media Authority and the Office of the eSafety Commissioner;
Australian Film, Television and Radio School;
Australian National Maritime Museum;
Australian Postal Corporation;
Bureau of Meteorology;
Classification Board and Classification Review Board;
Clean Energy Finance Corporation;
Climate Change Authority;
Director of National Parks;
Great Barrier Reef Marine Park Authority;
Independent Scientific Commission on Wind Turbines;
National Gallery of Australia;
National Museum of Australia;
National Portrait Gallery of Australia;
NBN Co Limited;
Public Lending Right Committee;
Screen Australia;
Snowy Hydro Limited;
Special Broadcasting Service Corporation; and
Sydney Harbour Federation Trust.
1.23
The Australian Renewable Energy Agency and the National Film and Sound Archive of Australia tabled annual reports in the House of Representatives and/or the Senate on the day the committee's supplementary budget estimates hearings commenced, on 25 October 2021. The report of the Australian Renewable Energy Agency was tabled after the committee's hearings on the agency had concluded.
1.24
The following agencies did not table their annual reports in either chamber of Parliament until after the commencement of the committee's supplementary budget estimates hearings:
Bundanon Trust;
Clean Energy Regulator;
Copyright Agency;
Creative Partnerships Australia Limited;
National Library of Australia;
Office of the National Wind Farm Commissioner; and
Screenrights.
1.25
Appendix 1 lists the annual reports tabled (or presented) in the House of Representatives and the Senate between 1 May 2021 and 30 April 2022, which were referred to the committee, with relevant tabling dates. For the purposes of the committee's examination of timeliness, the earlier date is taken as the presentation date to the Parliament. The table also includes the dates the reports were submitted to, and received by, the relevant Minister.
1.26
Appendix 2 lists documents tabled (or presented) in the House of Representatives and the Senate between 1 May 2021 and 30 April 2022, which were referred to the committee, with relevant tabling dates.

Senate debate

1.27
In accordance with standing orders, the committee is required to take into account any relevant remarks about annual reports made in debate in the Senate.21 None of the annual reports examined in this report were the subject of Senate debate.

Non-reporting bodies

1.28
Standing orders require that the committee report on any bodies which do not present annual reports to the Senate but should present such reports.22 The committee notes that there are no relevant bodies which are required to present an annual report to the Senate which have not done so.

Apparently satisfactory

1.29
Standing orders require that the committee report to the Senate on whether the annual reports of departments and agencies in its portfolios are 'apparently satisfactory'.23 In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.
1.30
The committee notes that the majority of agencies met the recommended timeframe for tabling annual reports prior to the commencement of the committee's supplementary budget estimates hearings on 25 October 2021.
1.31
The committee encourages all Commonwealth entities to follow best practice in future by tabling their annual reports prior to its estimates hearings. This will ensure that there is sufficient time for the committee to consider the content and performance information provided in annual reports prior to the commencement of its budget estimates hearings.24 Tabling annual reports on the first day of estimates or after the commencement of estimates does not provide senators with sufficient time to analyse the detail contained within annual reports to enable them effectively conduct the scrutiny and accountability processes of estimates.
1.32
The committee reminds all agencies to ensure that they include a complete and accurate compliance index in their annual reports. For Commonwealth entities, this must include the table of the list of requirements as specified by the PGPA Rule25 and where those requirements can be found in the annual report. It is not clear to the committee why some agencies have chosen to present their compliance indexes in a way other than that provided by the PGPA Rule. For example, the Australian Renewable Energy Agency26, the National Museum of Australia27 and the Special Broadcasting Service28 omitted paragraph references for requirements under the PGPA Rule29. This did not assist committee members in verifying compliance with requirements.
1.33
The committee notes that some agencies had incorrect or incomplete page references in their compliance indexes. The compliance index for the Clean Energy Finance Corporation included a column for page references, but few page references were actually provided30. The compliance indexes for the Australia Council31 and the Australian National Maritime Museum32 omitted page references altogether, with only broad section references provided. The committee recommends including the table of the list of requirements as it appears in the PGPA Rule and providing accurate and specific page references, which will assist with assessing compliance and improve the overall accessibility of agencies' annual reports.
1.34
The committee reminds all departments and agencies to ensure all requirements are met in sufficient detail to facilitate scrutiny and accountability. The committee will be thoroughly examining future annual reports for instances of non-compliance with the requirements of the PGPA Rule.
1.35
The committee has examined all annual reports referred during the reporting period and considers that they are 'apparently satisfactory'.
  • 1
    Standing Orders and other orders of the Senate, July 2021, standing order 25(20)(f).
  • 2
  • 3
    Standing Orders and other orders of the Senate, July 2021, standing order 25(20).
  • 4
    Journals of the Senate, No. 3, 4 July 2019, pp. 83–84. See also, Journals of the Senate, No. 42, 13 February 2020, pp. 1368–1369 for the allocation of agencies following the Administrative Arrangements Order made on 5 December 2019, which took effect from 1 February 2020.
  • 5
    Journals of the Senate, No. 2, 27 July 2022, p. 73.
  • 6
    On 26 March 2021, the role of the National Wind Farm Commissioner was expanded to cover major transmission and energy infrastructure projects. As a result, the role was renamed as the Australian Energy Infrastructure Commissioner. Future reports will reflect this change.
  • 7
    Public Governance, Performance and Accountability Act 2013, section 38.
  • 8
    Public Governance, Performance and Accountability Act 2013, section 39.
  • 9
    Senate Hansard, 8 December 1987, pp. 2632–45.
  • 10
    Public Governance, Performance and Accountability Amendment (Digital Transformation Agency) Rules 2021.
  • 11
    Public Governance, Performance and Accountability Rule 2014, Schedule 1, Paragraph 10(1)(e).
  • 12
    Public Governance, Performance and Accountability Rule 2014, Schedule 1, Subclause 10(2).
  • 13
    Department of Finance, PGPA Newsletter 67, 6 May 2021, www.finance.gov.au/about-us/newsletters/2021/pgpa-newsletter-67.
  • 14
    Standing Orders and other orders of the Senate, July 2021, standing order 25(20)(c).
  • 15
    Public Governance, Performance and Accountability Act 2013, section 46.
  • 16
    Public Governance, Performance and Accountability Act 2013, subsection 97(2).
  • 17
    PGPA Rule, sections 17AB, 17BC and 28C. See also Department of the Prime Minister and Cabinet, Guidelines for the Presentation of Documents to the Parliament, February 2017, pp. 4–5.
  • 18
    Department of Finance, Resource Management Guide No. 135 – Annual Report for non-corporate Commonwealth entities, February 2022, www.finance.gov.au/government/managing-commonwealth-resources/annual-reports-non-corporate-commonwealth-entities-rmg-135; Resource Management Guide No. 136 – Annual report for corporate Commonwealth entities, February 2022, www.finance.gov.au/government/managing-commonwealth-resources/annual-report-corporate-commonwealth-entities-rmg-136. In the case of a wholly owned Commonwealth company, or a Commonwealth company that is not required to hold an annual general meeting, the PGPA Act states that 'the responsible Minister must table the documents in each House of the Parliament as soon as practicable after receiving them. In all other cases, the responsible Minister must table the documents in each House of the Parliament as soon as practicable after the annual general meeting of the company' (Public Governance, Performance and Accountability Act 2013, subsection 97(5)).
  • 19
    Acts Interpretation Act 1901, subsections 34C(2) and 34C(3).
  • 20
    Acts Interpretation Act 1901, subsection 34C(6). Note: Entities and companies impacted by COVID‑19 were encouraged to seek an extension if they did not have the capacity to meet existing annual report deadlines.
  • 21
    Standing Orders and other orders of the Senate, August 2018, standing order 25(20)(d).
  • 22
    Standing Orders and other orders of the Senate, July 2021, standing order 25(20)(h).
  • 23
    Standing Orders and other orders of the Senate, July 2021, standing order 25(20)(a).
  • 24
    In 2022, budget estimates hearings are scheduled to commence on 28 October.
  • 25
    For non-corporate Commonwealth entities, the table of the list of requirements is set out in Schedule 2 of the PGPA Rule where Section 17AJ(d) requires the table to be included in entities' annual reports as an aid of access. For corporate Commonwealth entities, the table is set out in Schedule 2A of the PGPA Rule and Section 17BE(u) requires the table to be included in entities' annual reports. For Commonwealth companies, the table is set out in Schedule 2B of the PGPA Rule and Section 28E(p) requires the table to be included in entities' annual reports.
  • 26
    Australian Renewable Energy Agency, Annual Report 2020–2021, p. 171.
  • 27
    National Museum of Australia, Annual Report 2020–21, pp. 76–77.
  • 28
    Special Broadcasting Service, Annual Report 2021, p. 190.
  • 29
    Public Governance, Performance and Accountability Rule 2014, Schedule 2A, Section 17BE(u).
  • 30
    Clean Energy Finance Corporation, Annual Report 2020–21, pp. 174–176.
  • 31
    Australia Council for the Arts, Annual Report 2020–21, pp. 163–167.
  • 32
    Australian National Maritime Museum, Annual Report 2020–21, pp. 156–157.

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