2.1
The annual reports of the following departments for the financial year 2019-20 (the reporting period) were referred to the committee for examination and report:
Attorney-General's Department (AGD); and
Department of Home Affairs (Home Affairs), including the Australian Border Force (ABF).
Attorney-General's Department
Tabling of report
2.2
The 2019-20 annual report was tabled in the Senate on 9 November 2020, after having been tabled in the House of Representatives on 19 October 2020. The report was submitted to the minister on 12 October 2020, meeting the requirements under section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Secretary's review
2.3
In his review for 2019-20, the then Secretary of AGD, Mr Chris Moraitis PSM, emphasised the impact of the COVID-19 pandemic and the 2019-20 summer bushfire crisis on the department's priorities for the reporting period. He highlighted some of the department's key contributions to the Australian government's responses to both events, namely:
provision of legal advice by the Australian Government Solicitor (AGS) Group on a range of complex and novel legal issues arising out of the COVID-19 pandemic;
collaboration with the AFP to mitigate the risk of fraud associated with the government's response measures;
support for the Department of Health and the Digital Transformation Agency to develop the COVIDSafe app, and collaboration with the Office of the Australian Information Commissioner to develop legislation to input privacy protections for app users;
provision and administration of additional funding for the legal assistance sector to address the increased need around matters such as domestic violence, employment, rent and debt-related issues during the pandemic, as well as for individuals, small business and primary producers affected by the summer bushfire crisis;
drafting amendments to the Bankruptcy Act 1966 to raise thresholds for people facing financial distress to be forced into bankruptcy during the pandemic;
preparation of an emergency declaration for the Attorney-General under the Privacy Act 1988 which created a streamlined framework for sharing personal information in an emergency response scenario; and
support for the establishment of the Royal Commission into National Natural Disaster Arrangements.
2.4
Beyond these matters, the Secretary highlighted a number of AGD's achievements during the reporting period, including:
preparation of exposure draft legislation for public consultation in response to the Religious Freedoms Review;
finalising the National Legal Assistance Partnership between the Commonwealth, state and territory governments to provide funding for frontline legal assistance services for disadvantaged people; and
successful finalisation of litigation in the World Trade Organization (WTO) relating to Australia's plain packaging legislation, which reaffirmed the measures' legitimacy and consistency with WTO rules.
Performance reporting
2.5
AGD's reporting framework is set out in the Attorney General's 2019-20 Portfolio Budget Statements (PBS) and the 2019-23 Corporate Plan (corporate plan). The PBS sets out AGD's outcomes, and the programs administered underneath them. It also sets out high-level performance measures, using the standards of 'effectiveness' and 'efficiency' to measure success in meeting AGD's outcomes. The committee notes that the 2018-19 PBS included a third criterion, 'community impact', but that the annual report stated that this third criterion was removed 'in recognition that community impact falls under the performance criteria of effectiveness'.
2.6
The outcomes under the PBS are reflected in the two purposes set out in the corporate plan, which are:
Purpose 1–achieving a just and secure society through the maintenance and improvement of Australia's law, justice, security and integrity frameworks; and
Purpose 2–facilitating jobs growth through policies and programs that promote fair, productive and safe workplaces.
2.7
The corporate plan sets out six strategic priority areas, namely legal, workplaces, integrity, security, justice and rights, to achieve these purposes. Under these six key activities are detailed performance measures and targets that AGD uses to evaluate its performance. The performance statement within the annual report sets out the results of AGD's analysis of its activities against the targets. The performance framework, as set out in the annual report provides a 'clear read'. The committee acknowledges the AGD for its ongoing efforts to report clearly and update its performance framework.
2.8
In the reporting period, AGD achieved 71 per cent (24 targets), partially achieved eight per cent (three targets) and did not achieve 21 per cent (seven targets) of its Purpose 1 targets. This compares to the previous reporting period, in which 76 per cent of targets were met, and 24 per cent of targets were not met.
2.9
Of the seven targets not met:
Four targets received lower than anticipated stakeholder satisfaction in terms of effectiveness and efficiency in the strategic priority areas of justice and rights. AGD suggested that data from its annual stakeholder survey indicates that the delayed delivery of some legislative and policy projects due to COVID-19-related reprioritisation may have contributed to these results.
One target, which pertained to the launch of the Australian Government Legal Service, was categorised as not achieved because of delays associated with the COVID-19 pandemic. AGD stated that while it was not able to launch the Australian Government Legal Service as planned, other work related to this target has progressed.
Two targets were based on the international benchmarking mechanisms used to monitor Australia's global position in relation to citizens' perceptions of human rights, access to justice and corruption. AGD noted that these positions were the same as the previous year.
2.10
The committee commends AGD, and the government more broadly, for its consistently strong position in international benchmarks on these critical issues, however, it encourages it to continue to consider how it might improve its performance to meet its own targets, or alternatively, consider the applicability of the benchmark itself.
2.11
Of the three targets partially met:
Two targets related to AGD's work in supporting the National Indigenous Australians Agency to recognise Aboriginal and Torres Strait Islander peoples in the Constitution and to develop proposals for a local, regional and national voice. AGD stated that this work is underway, but has been delayed by the COVID-19 pandemic.
The remaining partially achieved target relates to the government's response to the Religious Freedoms Review. AGD stated that two sets of exposure draft legislation were released for public consultation within expected timeframes, but further progress was delayed due to the COVID-19 pandemic.
Financial performance
2.12
The AGD recorded a deficit of $7.612 million during the reporting period, compared to a surplus of $5.623 million the previous year. After adjustment for unfunded depreciation of $10.867 million, the result is a surplus of $3.255 million. AGD attributes this surplus to a strong performance by the Australian Government Solicitor and the timing of implementing budget measures.
2.13
The total administered expenses for the reporting period were $897.952 million, compared to $413.222 million in the previous year, including $385.543 million in grant payments, $147.349 million in subsidies associated with the Coal Mining Industry (Long Service Leave Funding) Corporation, $99.485 million for royal commissions including legal assistance for witnesses and $22.497 million paid to corporate entities within the portfolio.
2.14
The total administered revenue for the reporting period included levies of $147.349 million for the Coal Mining Industry (Long Service Leave Funding) Corporation and personal benefit recoveries of $137.625 million for the Fair Entitlements Guarantee Act 2012. Both functions fall under the department's industrial relations responsibilities.
Conclusion
2.15
The committee considers the report to be 'apparently satisfactory'.
Department of Home Affairs including the Australian Border Force
Tabling of report
2.16
The 2019-20 annual report was tabled in the Senate on 9 November 2020, after having been tabled in the House of Representatives on 19 October 2020. The report was submitted to the Minister for Home Affairs on 16 September 2020, meeting the requirements under section 46 of the PGPA Act.
Secretary's and Commissioner's reviews
2.17
The Secretary of Home Affairs, Mr Michael Pezzullo AO, and the Commissioner of the ABF, Mr Michael Outram APM, provided individual reviews for the annual report.
2.18
Mr Pezzullo highlighted Home Affairs' pivotal role in the government's response to the 2019-20 summer bushfires and the COVID-19 pandemic, and the department's ability to pivot its resources, focus and strategies to respond to government priorities. Mr Pezzullo pointed to particular measures, including:
establishment of the National Coordination Mechanism to coordinate and facilitate the non-health response to the pandemic;
establishment of the Supermarket Taskforce to resolve issues with supply chains in supermarkets;
implementation of enhanced border controls; and
continued operation of the migration and citizenship programs under COVID-19 conditions.
2.19
More broadly, Mr Pezzullo identified other achievements during the reporting period, including:
launching the Home Affairs Portfolio Illicit Drug Action Plan;
supporting the Australia-New Zealand Counter-Terrorism Committee to enhance Australia's ongoing capability in identifying, mitigating and responding to terrorism;
coordinating the 'No Money for Terror' Ministerial Conference on Counter Terrorism Financing in November 2019; and
completing delivery of all initiatives under the 2016 Cyber Security Strategy, and continuing work to finalise Australia's Cyber Security Strategy 2020.
2.20
In the Commissioner's review, Commissioner Outram noted the contrast between the two halves of the reporting period, highlighting the strong growth in trade volumes and travel numbers in the first half, and the unprecedented travel restrictions and resultant reductions in traveller numbers in the second half, with borders becoming a frontline of defence against the pandemic. The Commissioner stated that the bushfires and COVID-19 changed the functions, priorities and responsibilities of the ABF.
2.21
The Commissioner highlighted, in particular, the role of the ABF in the rapid implementation of border controls as a critical factor in slowing the introduction and spread of COVID-19 in Australia. He also identified other measures taken by the ABF in response to the pandemic, including:
assisting in the repatriation of Australians from China and Japan;
quickly establishing quarantine facilities at North West Point and Howard Springs;
engaging with airlines to prevent passengers who were unwell or from high risk countries from arriving in Australia;
implementing a new travel exemption process in limited circumstances;
implementing the government's ban on cruise ships;
ensuring air and sea cargo could continue to arrive in Australia;
preventing the export of critical medical supplies out of Australia during the pandemic; and
implementing comprehensive measures to prevent COVID-19 from affecting immigration detention facilities.
2.22
The Commissioner outlined other aspects of the ABF's work that continued during the pandemic, including:
surging officers at air and sea ports to detect and stop illicit goods from entering Australia; and
targeting the exploitation of foreign workers though Operation Battenrun.
Performance reporting
2.23
Home Affairs' performance framework is set out the 2019-20 Home Affairs Portfolio Budget Statements (Home Affairs PBS) and the 2019–20 Corporate Plan (corporate plan). The Home Affairs PBS outlines the department's three outcomes and the programs related to each of them, as well as a number of performance criteria. The corporate plan highlighted three purposes, each of which reflect the outcomes in the PBS, namely:
national security: protect Australia and Australians from national security and criminal threats through effective national coordination, emergency management and policy development;
prosperous and united society: support a prosperous and united Australia through effective coordination and delivery of immigration and social cohesion policies and programs; and
border and customs operations: advance a prosperous and secure Australia through trade and travel modernisation, effective customs, immigration, maritime and enforcement activities across the border continuum.
2.24
Each purpose contains a number of activities and measures by which Home Affairs assesses its performance. The performance statement in the annual report clearly sets out the relationship between the outcomes and programs under the PBS, and the purposes and activities of the corporate plan. The performance framework, as set out in the annual report provides a 'clear read'. The committee commends Home Affairs for its consistently clear reporting framework.
2.25
Home Affairs met or partially met most of its performance measures. The performance measures not met were as follows:
Measure 1.1.3.3 – 100 per cent of Foreign Investment Review Board cases referred are responded to within agreed timeframes (10 days unless otherwise agreed with the Treasury). Home Affairs stated that 506 cases (88 per cent) were finalised within the agreed timeframe, while 52 cases were responded to within one week. 17 cases were responded to more than one week after the agreed timeframe. The annual report stated that the complexity of the cases or resourcing limitations might impact the ability of Home Affairs to respond within agreed timeframes.
Measure 1.2.1.5 – Advice on activation of Category C and Category D measures is provided within 72 hours of receipt of an accepted application from a state or territory government. The annual report explained that three of the seven requests received met this target. The remaining four required protracted and complex engagement with the affected states.
Measure 2.1.1.6 – Total revenue collected achieves Portfolio Additional Estimates Statements (PAES) estimates for visa application charges. The total revenue obtained from visa applications was $2.157 billion, $433.7 million less than the PAES target of $2.591 billion. The annual report pointed to the reduction in visa application volumes primarily due to the COVID-19 pandemic as a reason why this measure was not met.
Measure 2.1.2.1 – The Humanitarian Program is delivered within the planning ceiling and consistent with priorities set by the government. The annual report identified that the granting of all Class XB (offshore) Humanitarian visas was suspended on 19 March 2020 due to the COVID-19 pandemic, preventing the Humanitarian program from being fully delivered.
Measure 3.1.2.1 – Total revenue collected from customs duty, Import Processing Charge and Passenger Movement Charge achieves PAES estimates. The annual report explained that total revenue did not meet the PAES estimates, but increased compared to the total amount during the previous reporting period. The department attributes the increase to measures relating to the 2018-19 budget measure, Black Economy Package–combatting illicit tobacco, and additional changes due to the COVID-19 pandemic.
Measure 3.2.1.3 – Maintain 2018-19 clearance volumes of international air and sea travellers. The annual report attributed this lack of achievement to the COVID-19 pandemic.
Measure 3.2.1.8 – 95 per cent of funded sea going days are completed. The ABF achieve 69.2 per cent of its 3320 funded sea going days. The annual report attributed this result to an unprecedented maintenance program and unavoidable work across the fleet to address emergent safety issues.
Financial performance
2.26
The total departmental operating result for 2019-20 was a $424.48 million operating deficit, an increase from the $344.69 million deficit seen in the previous reporting period. The annual report noted, however, that after adjustments for depreciation and amortisation expenses, the underlying result was an operating deficit of $34.9 million.
2.27
Home Affairs reported that during the reporting period, its administered expenses were $2.58 billion, an increase from the previous reporting period of $2.04 billion. The report attributed this change to two factors: increased payments in relation to the Australian Government Disaster Recover Payment program to individuals adversely impacted by natural disasters; and the department assuming responsibility for settlement services for refugees and humanitarian migrants and adult migrant education from 1 July 2019 under the Administrative Arrangements Order of 29 May 2019.
2.28
Home Affairs' net asset position was $1.17 billion (assets minus liabilities), representing a decrease of $62.25 million from the previous reporting period.
Conclusion
2.29
The committee considers the report to be 'apparently satisfactory'.