Chapter 2Annual reports of departments
2.1The annual reports of the following departments for the financial year 2022-23 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
2.2The Attorney-General’s Department Annual Report 2022-23 was tabled in the House of Representatives on 16 November 2023 after being presented out of session in the Senate on 23 October 2023. The report was submitted to the Attorney-General on 12 October 2023, meeting the requirements under section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Secretary’s review
2.3In her review for 2022-23 the Secretary of AGD, Ms Katherine Jones PSM, noted changes to the portfolio structure of the department during the reporting period. Under those changes, the Australian Federal Police, the Australian Transaction Reports and Analysis Centre, the Australian Criminal Intelligence Commission, and the Office of the Special Investigator were added to the Attorney-General’s portfolio. Additionally, the department assumed responsibility for the Open Government Partnership, copyright policy, and the High-Risk Terrorist Offender regime during the reporting period.
2.4Ms Jones outlined several of AGD’s achievements and priorities during the reporting period, which included the:
provision of legal services and policy advice on legislative initiatives including the Nation Anti-Corruption Act 2022, Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022, the Treasury Laws Amendment (Energy Price Relief Plan) Act 2022, the Housing Australian Future Fund Bill 2023, and the Treasury Laws Amendment (Housing Measures No 1) Bill 2023;
provision of legal services and policy advice on issues relating to the referendum and proposed mechanisms for the Indigenous Voice to Parliament;
representation of the Department of Defence in response to a class action brought by the Wreck Bay Aboriginal Community Council;
provision of advice to agencies on compliance with the requirements of the National Anti-Corruption Commission;
conduct of reviews and public consultation on modern slavery legislation;
provision of legal services regarding Australia’s intervention in the International Court of Justice case brought by Ukraine against Russia;
administration of import controls on firearms and related articles;
management of casework relating to the resolution of native title claims by consent;
administration of and provision of advice on legal and policy frameworks, particularly in relation to privacy law reform;
development of a Third National Action Plan under the Open Government Partnership;
negotiation with states and territories of the 5 Year Work Plan to Strengthen Criminal Justice Responses to Sexual Violence 2022-27;
administration of the Justice Policy Partnership and the Standing Council of Attorneys-General Age of Criminal Responsibility Working Group to address overrepresentation of Aboriginal and Torres Strait Islander adults and youth in the criminal justice system;
administration and implementation of programs and services including the Commonwealth Fraud Prevention Centre, the National Strategy to Prevent and Respond to Child Sexual Abuse 2021-2030, and measures to improve community safety in Central Australia;
establishment of the National Anti-Corruption Commission;
provision of support to royal commissions;
formation of a joint First Nations Justice Taskforce with the National Indigenous Australians Agency;
implementation of a national real-time deaths in custody dashboard on 22June 2023;
creation of AGD’s Transformation Strategy and Transformation Action Plan; and
establishment of an Embedding Priority Reforms Team to reform the way that AGD operates under the National Agreement for Closing the Gap.
Performance reporting
2.5AGD’s reporting framework is set out in the Attorney-General’s 2022–23 Portfolio Budget Statements (AGD PBS) and the Attorney-General’s Corporate Plan 2022–26 (AGD Corporate Plan). The AGD PBS sets out AGD’s two outcomes and the programs administered underneath them. It also sets out high-level performance measures to measure success in meeting AGD’s outcomes, including standards of ‘effectiveness’ and ‘timeliness and responsiveness’.
2.6The outcomes outlined in the AGD PBS are reflected by the purpose set out in the AGD Corporate Plan, which is to:
achieve a just and secure society through the maintenance and improvement of Australia’s law justice, security and integrity frameworks.
2.7AGD aims to achieve this purpose through five key activities, which are:
provide legal services and policy advice and oversee legal services across government;
manage casework;
administer and advise on legal and policy frameworks;
administer and implement programs and services; and
establish and support royal commissions.
2.8The performance of the department is measured through 14 performance measures, which comprise 21 performance targets that relate to these five key activities.
2.9In the reporting period, AGD did not achieve two of its 14 performance measures, as it failed to achieve all the targets associated with that measure. Those measures were:
Performance measure 1.5: Manage significant legal issues and arrangements for Australian Government legal services; and
Performance measure 4.6: Crime prevention assistance.
2.10Of its 21 performance targets, 57 per cent were achieved (12 targets) and 14percent were partially achieved (three targets). AGD reported that 29percent of its targets were not achieved (six targets). This is a lower rate of achievement than reported during the previous 2021-22 reporting period. During the previous reporting period, 73 per cent of targets were achieved, 10per cent were partially achieved, and 17 per cent were not achieved.
2.11The six targets not achieved are outlined in the following paragraphs.
2.12Target 1.5.1 – Average performance rating from stakeholders of 76 index points out of 100 for effectiveness of initiatives to support compliance with obligations under the Legal Services Directions 2017. AGD reported that respondents provided positive ratings for the department’s effectiveness of 75 index points, marginally lower than the target. AGD further reported that responses to the stakeholder survey were overall positive, with stakeholders noting the high calibre of staff and AGD’s ability to partner and work closely with stakeholders. AGD noted that feedback from some respondents suggested that the department could provide advice in a more succinct manner, take a more flexible approach to timeframes, and provide greater transparency about internal processes.
2.13Target 1.5.2 – Satisfaction of government lawyers with initiatives provided by the Australian Government Legal Service (AGLS) greater than 80 per cent. Results from the department’s stakeholder survey indicated that 57 per cent of respondents were ‘somewhat’ or ‘very satisfied’ with the AGLS and its initiatives, compared to 66 per cent of respondents in 2021-22. AGD also reported that 95 per cent of respondents knew the AGLS existed, compared to 98 in 2021-22. AGD stated that the results indicated the need to better engage with government lawyers to understand their concerns and improve AGLS initiatives.
2.14Target 2.1.1 – Average performance rating from stakeholders of 76 index points or above out of 100 for: ‘effectiveness’ and ‘timeliness and responsiveness’ in relation to managing casework functions and related litigation. AGD reported that respondents to the stakeholder survey provided positive ratings of 75 for ‘effectiveness’ and 67 for timeliness and responsiveness’. AGD attributed these results to a continued growth in casework volume and complexity. AGD noted that some feedback suggested the need for greater coordination with state and territory stakeholders.
2.15Target 3.1.1 – Average performance rating from stakeholders of 76 index points or above out of 100 for: ‘effectiveness’ and ‘timeliness and responsiveness’ in relation to the administration and provision of advice on legal and policy frameworks. AGD reported that respondents to the stakeholder survey provided positive ratings of 75 index points for ‘effectiveness’ and 71 index points for ‘timeliness and responsiveness’. AGD noted that the results indicated areas for improvement as communication and timeliness of advice, simplifying consultation requests, expanding consultation activities, and providing clarity in the division of responsibilities between AGD and other Commonwealth departments.
2.16Target 4.1.1 – Average performance rating from stakeholders of 76 index points or above out of 100 for: ‘effectiveness’ and ‘timeliness and responsiveness’ in relation to the delivery of Australian Government-funded legal assistance. AGD reported that respondents to the stakeholder survey provided positive ratings of 71 index points for ‘effectiveness’ and 68 index points for ‘timeliness and responsiveness’. AGD further reported that responses indicated stakeholders’ general satisfaction with the advice and engagement received. AGD noted that feedback from stakeholders suggested the implementation of the National Legal Assistance Partnership (NLAP) is an ongoing challenge.
2.17Target 4.6.1 – Average performance rating from stakeholders of 76 index points or above out of 100 for: ‘effectiveness’ and ‘timeliness and responsiveness’ in relation to the administration of funding provided for crime prevention assistance. AGD reported that respondents to the stakeholder survey provided positive ratings of 73 index points for ‘effectiveness’ and 74 index points for ‘timeliness and responsiveness’, marginally lower than the target. AGD noted challenges in achieving this target due to machinery of government changes in 2022. AGD further reported that stakeholder responses to the survey were generally positive and highlighted the department’s strong partnerships, collaboration, expertise, and regular communication.
2.18On 16 May 2023, the Australian National Audit Office (ANAO) published a report on the Implementation of Parliamentary Committee and Auditor-General Recommendations. The audit examined the implementation of 27 recommendations made by parliamentary committees or the Auditor-General between January 2020 and July 2021 and agreed to by AGD.
2.19The ANAO found that one parliamentary committee recommendation and one Auditor-General recommendation were not implemented by the AGD. The two recommendations not implemented are:
Recommendation 13 by the Joint Committee on Intelligence and Security’s Inquiry into the impact of the exercise of law enforcement and intelligence powers on freedom of the press: Training on the application of the Protective Security Policy Framework requirements for sensitive and classified information be made compulsory for all relevant Commonwealth Officers and employees; and
Recommendation 11 by the Auditor-General: The Attorney-General implements arrangements to obtain an appropriate level of assurance on the accuracy of Protective Security Policy Framework (PSPF) Policy 10 self-assessment results.
2.20The ANAO audit concluded that overall AGD had been ‘largely effective’ in implementing the recommendations examined in the report.
Financial performance
2.21The total departmental operating result for 2022-23 was a $2.697 million operating deficit compared with the $5.456 million surplus recorded in the previous reporting period. After accounting for $15.108 million of unfunded depreciation, the underlying result is a surplus of $12.411 million. AGD attributed this result to a strong performance by the Australian Government Solicitor during the reporting period and Portfolio Additional Estimates Statements funding received in June 2023.
2.22During the reporting period, AGD reported that its administered expenses for 2022-23 were $617.816 million compared to $818.749 million in 2021-22. The major expenses included $418.987 million in grant payments and $124.910million in supplier payments.
2.23The total administered revenue for the reporting period was $40.396 million compared to $235.888 million in the previous year. The major revenue for 2022-23 was Proceeds of Crime Act 2002 receipts of $31.644 million.
Conclusion
2.24The committee considers the report to be ‘apparently satisfactory’.
Department of Home Affairs including the Australian Border Force
Tabling of report
2.25The Department of Home Affairs Annual Report 2022-23 was tabled in both the House of Representatives and the Senate on 18 October 2023. The report was submitted to the Minister for Home Affairs on 19 September 2023, meeting the requirements under section 46 of the PGPA Act.
Secretary and Commissioner’s reviews
2.26The 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.
2.27In his review, Mr Pezzullo remarked that the Department of Home Affairs’ operating environment continued to be characterised by complexity and fiscal challenges in 2022-23. Key priorities for the Department of Home Affairs during the reporting period included efforts to uplift Australia’s cybersecurity, build national resilience, and develop reforms for the Migration Program.
2.28The Secretary outlined a number of measures that the Department of Home Affairs implemented throughout the reporting period, including:
national coordination and response activities in relation to malicious cyber activities, including incidents involving Optus and Medibank Private;
commencing consultation and development of the 2023-2030 Australian Cyber Security Strategy;
hosting an inaugural Cyber and Infrastructure Security Conference;
consulting with industry owners and operators of critical infrastructure;
establishing the National Resilience Taskforce in November 2022 to better position Australia to deal with exposure and vulnerability to nationally significant crises;
establishing the Strengthening Democracy Taskforce in January 2023 to explore possibilities for safeguarding and sustaining Australia’s democratic resilience;
supporting the capability uplift of industries at higher risk of foreign interference with a focus on Australian universities;
continued coordination across the National Intelligence Community to provide intelligence support to electoral integrity efforts;
delivery of the Migration Program;
commencing design of an enhanced migration system in response to the report for ‘The Review of the Migration System’ provided to the government in March 2023;
delivering the Humanitarian Program and Community Support Program; and
continuing to implement workplace initiatives from the People and Workforce Plan 2025 and the Reconciliation Action Plan 2023-2026.
2.29Looking forward, Mr Pezzullo indicated that the department would be engaged in:
the finalisation of the 2023-2030 Cyber Security Strategy;
supporting the finalisation and implementation of the government’s Migration Strategy; and
service delivery enhancements to reduce backlogs, processing times and facilitation rates in migration, citizenship, and border domains.
2.30In his review, ABF Commissioner Outram noted the ABF implemented key organisational changes during the reporting period. This included the appointment of three new Deputy Commissioners across National Operations, Regional Operations, and Strategy and Capability.
2.31Commissioner Outram noted that the ABF’s operating environment remained challenging and complex during the reporting period. The Commissioner explained that during 2022-23, international travel and trade increased to pre-COVID-19 levels. Additionally, the Commissioner highlighted a significant increase in global trafficking of illicit goods compared to the previous year.
2.32Commissioner Outram reflected on the achievements of the ABF during the reporting period, noting that it:
supported passenger processing through the rollout of Generation 3 kiosks and SmartGates in November 2022 in Queensland and the NorthernTerritory;
progressed digital and data reform initiatives to provide traders with real-time messaging on the operational status of the international cargo system;
continued to simplify and improve its trade systems;
intercepted four maritime people smuggling ventures through Operation Sovereign Borders;
commenced Operation INGLENOOK in November 2022 to identify, deter, and disrupt facilitators of trafficking and/or modern slavery in the sex industry;
seized 4.78 tonnes of cocaine at the Australian border, a 167 per cent increase compared to 2021-22;
continued activities to target global drug trafficking, resulting in 43 arrests under Operation TIN CAN and 118 infringement notices issued under Operation JARDENA; and
detected 168 instances of revenue evasion through the Illicit Tobacco Taskforce.
Performance Reporting
2.33Home Affairs’ performance framework is set out in the 2022-23 Home Affairs Portfolio Budget Statements (Home Affairs PBS) and the Home Affairs 2022-23 Corporate Plan (Home Affairs Corporate Plan). The Home Affairs PBS outlines the department’s three outcomes and the programs related to each of them, as well as several performance criteria. The Home Affairs Corporate Plan highlighted three purposes, each of which reflect the outcomes in the HomeAffairs PBS:
national security: protect Australia from national security and criminal threats, and support national resilience, through effective national coordination, policy and strategy development, and regional cooperation;
prosperous and unified 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 facilitation and modernisation, and effective customs, immigration, maritime and enforcement activities across the border continuum.
2.34Each purpose contains several activities and performance objectives by which Home Affairs assesses its performance. The performance statement in the annual report clearly sets out the relationship between the purposes, activities, and objectives. The performance of the department is assessed against a series of performance metrics that are outlined in the Home Affairs Corporate Plan.
2.35Home Affairs met or substantially met most of its performance metrics. The performance metrics not met are outlined in the following paragraphs.
2.36Target 8 – The Trusted Information Sharing Network (TISN) is expanded to all nationally agreed arrangements set by the Critical Infrastructure Advisory Council (CIAC) in 2022-23. Home Affairs indicated that as at 30 June 2023, nine of the eleven sector groups as set by the CIAC are fully operational. A further two sector groups are nearing the desired level of maturity and have inaugural meetings scheduled for early 2023-24.
2.37Target 14 – 70 per cent of surveyed public and state government stakeholders are satisfied with the consultation process used to develop policy advice for Government on the Annual Migration Program (size and position). Home Affairs explained that this metric was not met as survey results fell 16.67 percent below the target.
2.38Target 27 – Two per cent reduction in the proportion of the unresolved Unauthorised Maritime Arrival (UMA) legacy caseload. Home Affairs explained that this metric was not met as the UMA caseload increased by 12.95per cent when compared with the caseload as at 30 June 2022.
2.39Target 28 – Resettle 95 per cent of the targeted 150 refugees in New Zealand each year. As at 30 June 2023, 46 refuges had resettled in New Zealand Home Affairs. This target was not met as the number of refugees resettled fell 64.33 per cent below the target. The department reported that a Joint Resettlement Taskforce with New Zealand has been established to inform engagement and progress on New Zealand resettlement.
2.40Target 29 – 90 per cent of citizenship by conferral applications are finalised within agreed target timeframes from lodgement to decision. Home Affairs stated that as at 30 June 2023, the proportion of conferral applications finalised within eight months of lodgement was 64 per cent. This metric was not met as citizenship by conferral application finalised within the agreed target timeframe was 26 per cent below the target.
2.41Target 40 – Maritime patrol days and aerial surveillance hours are maintained or increased. The ABF stated that as at 30 June 2023, 12,691 aerial surveillance flying hours and 2,182 maritime patrol days were completed compared to 14,798 flying hours and 2,337 patrol days in 2021-22. This target was not met as both maritime patrol days and aerial surveillance flying hours decreased in 2022-23 compared to the previous year. That decrease in maritime patrol days was attributed workforce issues and vessel maintenance. Similarly, a decrease in surveillance flying hours was attributed to under-resourced aircrews and increased aircraft maintenance requirements due to difficulties operating in remote offshore areas.
2.42Target 41 – The number of critical incidents in immigration detention facilities is comparable or decreases. The ABF stated that as at 30 June 2023, there were 88 critical incidents reported in immigration detention compared to 69 in 2021-22. That increase was attributed to a rise in critical incident reports associated with serious public health incidents due to COVID-19. This target was not met as the number of critical incidents per 1,000 detainees during 2022-23 rose by 57.26 per cent compared to 2021-22.
Australian National Audit Office performance audits
2.43The Australian National Audit Office (ANA) released five performance audit reports that examined Home Affairs and the ABF during the reporting period:
Department of Home Affairs’ Management of its Public Communications and Media Activities;
Management of Migration to Australia – Family Migration Program;
Procurement of the Permissions Capability;
Procurement of Office Furniture; and
Implementation of the Government Response to the Black Economy Taskforce Report.
2.44On 17 March 2023, the ANAO published a report on Management of Migration to Australia – Family Migration Program. The report examined the effectiveness of Home Affairs’ management of the Family Migration Program.
2.45Overall, the report found that Home Affairs had been ‘largely effective’ in its management of the Family Migration Program. The ANAO made six recommendations, agreed to by Home Affairs, relating to the establishment of ‘frameworks for measuring efficiency’.
Financial performance
2.46The total departmental operating result for 2022-23 was a $480.6 million operating deficit compared with a $329.0 million operating deficit recorded in the previous reporting period. After accounting for $578.6 million in depreciation and amortisation expenses (including for right-of-use leased assets) and $207.2 million in principal repayments for leased assets, the 2022-23 operating result was a deficit of $109.2 million.
2.47During the reporting period, Home Affairs reported that its administered expenses were $1.9 billion, compared to $2.4 billion in 2021-22. The report attributed this reduction to a combination of lower detention costs, transfer of grant programs to the Attorney-General’s department and National Emergency Management Agency through machinery-of-government changes, and lower impairment allowances for receivables.
2.48Home Affairs reported that its net asset position was $0.9 billion (assets minus liabilities), which was $0.3 billion lower than the net asset position of $1.2 billion reported in 2021-22.
Conclusion
2.15The committee considers the report to be ‘apparently satisfactory’.