Chapter 2Annual reports of departments
2.1The annual reports of the following departments for the financial year 2021–22 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 2021–22 was tabled in the House of Representatives on 25 October 2022 after being presented out of session in the Senate on 21 October 2022. The report was submitted to the Attorney-General on 28 September 2022, 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 2021-22 the Secretary of AGD, Ms Katherine Jones PSM, noted that the department was implementing the machinery-of-government changes announced in June 2022. Under those changes, the Australian Federal Police, 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.
2.4Ms Jones outlined several of the AGD’s achievements and priorities during the reporting period, which included the:
provision of legal services and policy advice, particularly to government lawyers;
coordination of the settlement of the class action brought by the Ngaanyatjarra community;
provision of advice to the Department of Defence regarding the legal implications of the acquisition of nuclear-powered submarines under the AUKUS partnership;
initiation of legal proceedings against the Russian Federation in the International Civil Aviation Organization Council in relation to the crash of Malaysia Airlines Flight MH17;
management of casework in relation to the criminal justice and civil dispute resolution systems and the protection of children;
administration of the Justice Policy Partnership that was established to address the overrepresentation of Aboriginal and Torres Strait Islander peoples in the criminal justice system;
reform of the family law system;
provision of advice in relation to amendments to the counter-terrorism and national security legislative frameworks, and Fair Work laws to implement a number of recommendations from the Respect@Work report;
development of guidance to support businesses in managing COVID-19 in their workplaces;
convening of a First Responder Mental Health Working Group to implement recommendation 8 of the Senate Education and Employment References Committee’s report The people behind 000: mental health of our first responders;
implementation of enabling systems, policies, and frameworks to support the Agreement between the Government of Australia and the Government of the United States of America on Access to Electronic Data for the Purpose of Countering Serious Crime;
administration and implementation of programs and services, including the Fair Entitlements Guarantee; the Hazard 2020 Safety Campaign in the building and construction industry; the Commonwealth Fraud Prevention Centre; the institutional partnership with the Department of Justice and Attorney General in Papua New Guinea; and the Pacific Law and Justice Program;
provision of support to royal commissions;
drafting of a submission to the Fair Work Commission Annual Wage Review;
establishment of a Transformation Team to develop an AGD Transformation Strategy and a Transformation Action Plan; and
establishment of a Data Analytics and Behavioural Insights Team to identify the levels of data experience and analytical capability within AGD.
2.5Looking at the year ahead, Ms Jones indicated that AGD will be engaged in:
the establishment of a National Anti-Corruption Commission;
measures to strengthen the legal assistance sector;
identifying opportunities to reform statutory appointment processes;
matters relating to a First Nations Voice to Parliament;
the implementation of the government’s response to the Australian Human Rights Commission’s Respect@Work report;
improving Indigenous justice outcomes;
supporting the Royal Commission into Defence and Veteran Suicide and the establishment of the Robodebt Royal Commission; and
international anti-corruption fora, most notably as co-chair of the G20 Anti-Corruption Working Group under the 2022 Indonesian G20 Presidency.
Performance reporting
2.6AGD’s reporting framework is set out in the Attorney-General’s2021–22 Portfolio Budget Statements (AGD PBS) and the Attorney-General’s Corporate Plan 2021–25 (AGD Corporate Plan). The AGD 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.
2.7The outcomes outlined in the AGD PBS are reflected by the two purposes set out in the AGD Corporate Plan, which are:
achieve a just and secure society through the maintenance and improvement of Australia’s law, justice, security and integrity frameworks; and
facilitate jobs growth through policies and programs that promote fair, productive and safe workplaces.
2.8AGD aims to achieve those purposes 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 and other bodies.
2.9The performance of the department is measured through 15 performance measures, which are composed of 29 performance targets that relate to these five activities.
2.10In the reporting period, AGD did not achieve two of its 15 performance measures as it failed to achieve all of the targets associated with those measures. Those measures were:
Performance measure 1.5: Manage significant legal issues and arrangements for Australian Government legal services; and
Performance measure 4.1: Legal assistance.
2.11Of its 29 performance targets, 73 per cent were achieved (21 targets) and ten per cent were partly achieved (three targets). AGD reported that 17 per cent of its targets were not achieved (five targets). This is a lower rate of achievement than reported during the previous reporting period. During the previous reporting period, 87 per cent of targets were achieved, 11 per cent were partly achieved, and one target was not achieved. AGD explained that the lower rate of achievement is due to the reduction in the number of targets under its performance measures and the rigorous system of assessment it applies to the analysis of each performance measure.
2.12The five targets that were not achieved were as follows:
Target 1.5.1—Average performance rating from stakeholders of 75 or above out of 100 for effectiveness of initiatives to support compliance with obligations under the Legal Services Directions 2017. AGD reported that respondents to the stakeholder survey provided positive ratings for the department’s effectiveness of 74 index points, marginally lower than the target. AGD further reported that responses to the stakeholder survey indicated that stakeholders valued the high level of expertise and advice AGD provided to support their compliance with obligations. AGD noted that feedback from some respondents suggested that the department could provide greater consistency in its advice, improved effectiveness in the management of constitutional and related legal risk and be more effective in providing sufficient information to stakeholders.
Target 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 66 per cent of respondents were ‘somewhat’ or ‘very satisfied’ with the AGLS and its initiatives, compared to 32 per cent of respondents in 2020–21. AGD also reported that 98 per cent of respondents knew the AGLS existed, compared to 82 per cent of respondents in the 2020–21 survey. AGD noted that the results indicated an improvement in the visibility of, and growing satisfaction with, the AGLS.
Target 4.1.1—Average performance rating from stakeholders of 75 or above out of 100 for: effectiveness, and timeliness and responsiveness in relation to the provision of legal assistance under the legal assistance grant programs, the National Legal Assistance Partnership, and COVID-19 and bushfires programs. AGD reported that respondents to the stakeholder survey provided ratings for the department’s effectiveness of 73 index points and efficiency of 71 basis points. AGD stated that the results are an improvement on those from the previous reporting period and that the department’s legal assistance stakeholder engagement was rated positively. It further explained that some feedback suggested that respondents expected improvements in considering the views of stakeholders and making decisions on sound evidence.
Target 4.1.2(ii)—Provision of funding to support greater access to the justice system: 80 per cent of applications for assistance are assessed within agreed timeframes and 80 per cent of grant payments are made within agreed timeframes, subject to third parties meeting relevant obligations and requirements. AGD stated that the target is used as a proxy measure for efficiency in the provision of support and funding to legal assistance providers and individuals. AGD explained that the target was not achieved due to a new grants management system being introduced but not finalised, which resulted in processing delays. Further delays were caused by the government entering a caretaker period in the lead up to the 2022 federal election, the need to clarify decision-making preferences with the new Attorney-General, and the funding changes that altered the processing of applications under the Native Title Respondent Funding Scheme and the Native Title Officer Scheme.
Target 4.4.2—The Work Health and Safety Accreditation Scheme is effectively implemented through the completion of at least 500 onsite safety audits each financial year. The target was not achieved as 463 audits were undertaken over the reporting period. Restrictions associated with the COVID-19 pandemic and prolonged wet weather on the east coast of Australia prevented many audits from occurring as building sites were closed.
Financial performance
2.13The AGD recorded a surplus of $5.456 million during the reporting period, compared to a surplus of $7.351 million in the previous year.
2.14The total administered expenses for the reporting period were $818.749 million, compared to $713.490 million in the previous year. The major expenses included $356.528 million in grant payments, $146.241 million in special appropriation payments to the Coal Mining Industry (Long Service Leave Funding) Corporation, and $109.337 million for the royal commissions.
2.15The total administered revenue for the reporting period included $146.241 million in levies collected by the Coal Mining Industry (Long Service Leave Funding) Corporation and personal benefit recoveries of $35.078 million under the Fair Entitlements Guarantee Act 2012. Both functions fall under the department’s industrial relations responsibilities.
Conclusion
2.16The committee considers the report to be ‘apparently satisfactory’.
Department of Home Affairs including the Australian Border Force
Tabling of report
2.17The Department of Home Affairs Annual Report 2021–22 was tabled in the House of Representatives on 25 October 2022 after being presented out of session in the Senate on 21 October 2022. The report was submitted to the Minister for Home Affairs on 20 September 2022, meeting the requirements under section 46 of the PGPA Act.
Secretary’s and Commissioner’s reviews
2.18The 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.
2.19Mr Pezzullo indicated that while the COVID-19 pandemic, geopolitical shifts, and climate change presented challenges to the department’s work, its strategic focus, resilience, and adaptability enable the delivery of effective outcomes.
2.20The Secretary outlined a number of measures that the Department of Home Affairs implemented throughout the reporting period that contributed to Australia’s prosperity, security, and national unity. Those measures included the:
biosecurity-conscious re-opening of the international border;
introduction of the Digital Passenger Declaration;
effective delivery of Australia’s migration program, particularly in relation to filling critical labour shortages following the peak of the COVID-19 pandemic;
reduction of administrative burdens on English language tuition providers;
provision of additional support for Afghan and Ukrainian clients;
establishment of the Cyber and Infrastructure Security Centre on 1September2021;
publication of the Ransomware Action Plan in October 2021;
continued close collaboration with industry and partner agencies to disrupt the actions of malicious actors involved in transnational crime, terrorism, and cyber crime;
rapid response to natural disasters and supply chain issues in Australia;
delivery of the Citizenship Program and outreach initiatives; and
removal of illicit content from digital industry platforms.
2.21In his review, ABF Commissioner Outram noted that the ABF’s operational environment remained complex and ever changing throughout the reporting period. He remarked that the adaptability of the department’s workforce supported the safe and successful re-opening of the international border and the ongoing facilitation of trade.
2.22The Commissioner explained that since 1 November 2021, fully vaccinated Australian citizens and permanent residents could leave Australia without requiring a travel exemption. From 15 December 2021, fully-vaccinated international students, skilled migrants, working holiday makers, and humanitarian visa holders were permitted into Australia. After 21February2022, all fully-vaccinated visa holders were permitted into Australia.
2.23Commissioner Outram reflected on the achievements of the ABF during the reporting period, noting that it:
continued to simplify and improve its border management systems;
worked with domestic and international partner agencies to detect, deter, and prosecute those who attempt to harm Australia, or the Australian way of life;
utilised air and maritime assets to swiftly identify and respond to drug smuggling ventures, illegal fishing, and the removal of marine hazards;
intercepted and detained individuals involved in five maritime people smuggling ventures through Operation Sovereign Borders;
concluded Australia’s regional processing arrangements with Papua New Guinea on 31 December 2021;
established Operation JARDENA to enhance the ABF’s supply chain capability and coordinate efforts to counter the efforts of criminal actors who seek to circumvent migration, visa, trade, and customs laws;
intercepted and seized 11.30 tonnes of major drugs, precursors, and new psychoactive substances at the Australian border; and
supported humanitarian arrivals from Afghanistan and operationalised trade sanctions issued on the Russian Federation as part of the international response to the situation in Ukraine.
Performance reporting
2.24Home Affairs’ performance framework is set out in the 2021–22 Home Affairs Portfolio Budget Statements (Home Affairs PBS) and the Home Affairs 2021–22 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 Home Affairs PBS:
national security: protect Australia from national security and criminal threats through effective national coordination, policy and strategy development, emergency management, and regional cooperation;
prosperous and united society: support a prosperous and united Australia through effective coordination and delivery of immigration and social cohesion polices and programs;
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.
2.25Each 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.
2.26Home Affairs met or partially met most of its performance metrics. The performance metrics not met were as follows:
Metric 1.1.4.3—Enhance partner governments’ capability through providing capacity building resources. Home Affairs reported that it had not delivered any capacity building activities with partner governments in the
Indo-Pacific due to the challenges associated with the COVID-19 pandemic.
Metric 1.1.6.5—Effectively contribute to whole-of-Government risk management of terrorists. Home Affairs manages individuals subject to the Management of Australians of Counter-Terrorism (CT) Interest Offshore Framework. In 2021–22, the department did not actively manage approximately 80 per cent of the individuals of CT interest offshore, due to operational delivery capacity limitations caused by resourcing challenges within the department.
Metric 1.2.1.2—100 per cent of high office holders have appropriate physical risk mitigations in place. Home Affairs indicated that as at 30 June 2022, 11.4per cent of eligible Australian High Office Holders (AHOHs) and locations had physical security risk mitigation plans in place. It further stated that this is reflective of a change in government on 21 May 2022. As of 31March2022, prior to the Federal election, 95 per cent of eligible AHOHs and locations of the former government had physical security risk mitigation plans in place. The department reported that it has a program of Physical Security Risk Assessments for the new Ministry, which will be completed within the next 12 months.
Metric 2.1.2.2—Improved Illegal Maritime Arrival legacy caseload application processing. Home Affairs reported that as at 30 June 2022, 94.7per cent of the legacy caseload has been decided or otherwise resolved. However, the metric was not met as the caseload was not resolved by 30September2021.
Metric 3.1.1.1—Facilitation in trade, cargo and traveller streams is maintained or improved compared to previous reporting periods. Home Affairs explained that this metric was not met as the average clearance time for inbound travellers increased by 8.31 seconds compared to 2020–21. The increase in the average clearance time was due to COVID-safe practices and health intervention requirements. The approximately 150 per cent increase in the weekly number of international passenger arrivals at Australian airports between mid-February to early June 2022 also contributed to increased processing times. Over the same time period, sea cargo clearance times declined by 2.51 per cent, the average clearance time for outbound travellers was reduced by 10.22 per cent, and air cargo cleared within 48 hours improved by 0.24 per cent.
Metric 3.1.1.2—Administration of the Australian Trusted Trader program contributes to Australia’s economic prosperity, including through reduced regulatory burden and delivery of quality assurance and compliance activities. Home Affairs stated that the metric was not met as there were 903 accredited Trusted Traders by the end of the 46th Parliament, below the target of 1000. The number of entities accredited as Trusted Traders increased at a slower rate in 2021–22 when compared to 2020–21, due to COVID-19 restrictions affecting on-site validation processes.
Metric 3.2.1.2—Maritime patrol days and aerial surveillance hours are maintained or increased compared to previous reporting periods. The ABF reported that the number of maritime patrol days and aerial surveillance hours completed decreased by 6.3 per cent and 8.2 per cent respectively in 2021–22 compared to the previous year. That decrease was attributed mainly to the impact of COVID-19 on critical crew positions, which prevented vessels from departing for patrol activities. Similarly, a shortage of qualified crew members to operate aircraft and rectify aircraft defects in remote territories also reduced the number of air surveillance hours.
Metric 3.2.2.1—The number of critical incidents in immigration detention facilities decreases compared to previous reporting periods. In the year to 30June2022, there were 559 critical incidents within the Immigration Detention Network. In the previous year, there were 259 critical incidents. The ABF reported that this metric was not met, as the number of critical incidents increased by 115.83 per cent in 2021–22.
2.27On 3 May 2022, 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 25 recommendations made by parliamentary committees or the Auditor-General between January 2019 and September 2020 and agreed to by Home Affairs.
2.28The ANAO found that one parliamentary committee recommendation was not implemented. The audit concluded that Home Affairs has been ‘largely effective’ in implementing the recommendations examined in the report.
Financial performance
2.29The total departmental operating result for 2021–22 was a $329.0 million operating deficit compared with the $322.9 million operating deficit recorded in the previous reporting period. After accounting for $595.1 million in depreciation and amortisation expenses (including for right-of-use leased assets) and $244.9 million in principal repayments for leased assets, the 2021–22 operating result is a surplus of $21.2 million. This surplus also includes approximately $77.5 million as a result of the changes in government bond rates, partially offset by changes to the salary growth rate and other accounting adjustments of $15.2 million, on the valuation of employee leave provisions.
2.30During the reporting period, Home Affairs reported that its administered expenses were $2.4 billion, compared to $2.6 billion in 2020–21. The report attributed this reduction to the transfer of responsibility for Disaster Recovery Payments to the National Resilience and Recovery Agency from 1 July 2021. However, the increased write-down and impairment expenses for customs duty receivables and additional costs for emergency settlement of refugees from Afghanistan partially offset the reduction.
2.31Home Affairs reported that its net asset position is $1.2 billion (assets minus liabilities), which is consistent with the net asset position of $1.2 billion reported in 2020–21.
Conclusion
2.32The committee considers the report to be ‘apparently satisfactory’.