Released by the Department of Finance under the
Freedom of Information Act 1982
FOI 22-57 Document 01
Keyword
Title
QTB INDEX SPRING 2022
AFM
Advance to the Finance Minister
AFP MATTER
AFP Matter
ANI
Australian Naval Infrastructure (ANI) Current Issues
ASL
Election Commitment, Public Sector Staffing
BRETT CATTLE
Live Cattle Export Ban Class Action
BUY AUSTRALIAN
Future Made in Australia Office
COLLINS SUBMARINES
ASC: Life of Type Extension (LOTE) to the Col ins Class Submarines
COVID-19
COVID-19 advertising campaign
s 22
DATA SCHEME
Implementing the
Data Availability and Transparency Act 2022
s 22
ECONOMIC CONDITIONS
Economic Conditions and Outlook
s 22
FINANCIAL REPORTING
Monthly Financial Statements - Year to date results
S22
FUTURE FUND ESG
Future Fund ESG Issues
GRANTS
Grants - ANAO report on the Building Better Regions Fund
INLAND RAIL
Australian Rail Track Corporation (ARTC) Inland Rail
JUDGES PENSIONS
Judges Pensions' Scheme
LAND ACQUISITION
Land Acquisition Matters
MOG IMPLEMENTATION
Machinery of Government Changes Implementation
MOP(S) DEMOGRAPHICS
Demographic data for MOP(S) Act employees
NATIONAL INTERMODAL
Development of Intermodal Terminals in Victoria and Queensland
NBN CO
NBN Co Current Issues
NEW CPRS
Updated Commonwealth Procurement Rules
NZ CITIZENS VOTING
New Zealand citizens voting in Australian elections
PARLIAMENTARIANS' REMUNERATION
Parliamentarians' Remuneration
QBT
QBT Wait Times and Delays
QUARANTINE
Purpose-built quarantine centres
RACHELLE MILLER
Mil er Claim
REGULATORY REFORM
Regulatory Reform
SNOWY HYDRO
Snowy Hydro Current Issues
UNDERPAID SUPERANNUATION
Superannuation Salary - Rent Free Housing
WASTE SPENDING
Election Commitment, Audit of Wasteful Spending
S22
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FOI 22-57 Document 01
S22
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FOI 22-57 Document 02
AFM
ADVANCE TO THE FINANCE MINISTER
Issue
Advance to the Finance Minister (AFM) provisions and al ocations.
Headline Response
On 24 June 2022, I approved an AFM of $235 million to support the
Government’s commitment to delivering better broadband services in
regional, rural and remote Australia.
Talking Points
• As part of its Better Connectivity for Rural and Regional Australia Plan, the
Government committed to provide $480 mil ion in the 2021-22 financial year
towards an upgrade of the NBN Co’s fixed wireless and satellite networks to
improve broadband services for premises in regional, rural and remote
Australia. This funding wil provide certainty to the NBN Co that it wil be able
to proceed with the upgrade.
• To help meet this commitment, on 24 June 2022 I approved a determination to
al ocate $235 mil ion from the AFM (in the
Appropriation Act (No. 1) 2021-
2022) to the then Department of Infrastructure, Transport, Regional
Development and Communications.
–
[If required] The remainder of the funding was able to be obtained from
existing resources.
• In case those opposite have forgotten, it was the previous Government that
made a similar commitment in the 2022–23 Budget but no appropriation was
made for it. This is typical from what we saw from those opposite – a failure to
deliver.
• No AFM allocations have been made in 2022-23 to date.
• The Government wil continue the accountability and transparency
arrangements for AFM al ocations which have been in place since March 2020,
including a media release in weeks when AFMs are issued, and seeking the
concurrence of the Shadow Finance Minister for any AFM al ocation of
$1 bil ion or more.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and Management
Cleared by Adviser: s 22
(Red text)
Date Updated: 19/07/2022
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 02
AFM
Policy Commitments
• N/A
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and Management
Cleared by Adviser: s 22
(Red text)
Date Updated: 19/07/2022
PDR Number: QB22-000071
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 02
AFM
Background
The AFM is a longstanding provision that has been included in annual Appropriation
Acts to accommodate urgent and unforeseen expenditure where the passage of
additional Appropriation Acts is either not possible or not practicable.
The Appropriation Acts require that, in order for an AFM to be al ocated, the
Finance Minister must be satisfied that there is an urgent need for expenditure in
the current year that is not provided for, or is insufficiently provided for, in the
Appropriation Acts because:
• of an erroneous omission or understatement; or
• the expenditure was unforeseen until after the last day on which it was
practical to provide for it in the Bil for the Act before that Bil was introduced
into the House of Representatives.
2021–22 AFM al ocations and historic provisions
Six AFM allocations total ing $2,042 mil ion were made from the 2021-22 Budget
Appropriation Acts, five of which were made by the former Finance Minister.
2021-22 AFM al ocations made by the former Finance Minister include:
• AFM (Nos. 1, 3 and 5) provided $821 mil ion to support construction of the
Australian Government Centres for National Resilience in Melbourne,
Brisbane and Perth that are being managed by Finance; and
• AFM (Nos. 2 and 4) provided $986 mil ion to the National Recovery and
Resilience Agency to support Pandemic Disaster Leave Payments.
Given the unique and evolving nature of the COVID-19 pandemic and the associated
uncertainty around the necessary government response, the Parliament passed a
series of extraordinary AFM provisions, totalling:
• $42.975 bil ion in 2019-20, from which $1.974 bil ion was al ocated;
• $50.000 bil ion in 2020-21, from which $2.930 bil ion was al ocated; and
• $10.000 bil ion in 2021-22, from which $2.042 bil ion was al ocated.
2022–23 AFM Provisions
The Supply Act (No. 1) 2022-2023 and Supply Act (No. 2) 2022-2023 (2022-23 Supply
Acts) provide two separate AFM provisions total ing $6 bil ion, comprising:
• $5 bil ion for future urgent and unforeseen COVID-19 related expenditure
($2 bil ion in Supply Act 1 and $3 bil ion in Supply Act 2). This is statutorily
limited; and
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and Management
Cleared by Adviser: s 22
(Red text)
Date Updated: 19/07/2022
Date Last Printed: 12/08/2022 2:06 PM
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FOI 22-57 Document 02
AFM
• $1 bil ion for other urgent and unforeseen expenditure ($400 mil ion in Supply
Act 1 and $600 mil ion in Supply Act 2).
Transparency and accountability
AFM determinations are legislative instruments but are not subject to the
disal owance or sunsetting provisions of the
Legislation Act 2003. AFM
determinations are registered on the Federal Register of Legislation (FRL), along
with an explanatory statement, and tabled in Parliament. The determinations are
also listed on the Department of Finance website with a link provided to the FRL.
It has been a longstanding practice for the Australian National Audit Office to
undertake an annual assurance review of AFMs al ocated during the financial year
and for the Finance Minister to table an Annual Report on AFM al ocations in the
Parliament. In March 2020, additional accountability and transparency
arrangements were introduced to support the extraordinary AFM provisions
established in response to the COVID-19 pandemic, including:
• a commitment to seek the concurrence of the Shadow Minister for Finance,
on behalf of the Opposition, for any proposed AFM al ocation over $1 bil ion;
and
• a media release in weeks when AFMs are issued.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and Management
Cleared by Adviser: s 22
(Red text)
Date Updated: 19/07/2022
Date Last Printed: 12/08/2022 2:06 PM
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FOI 22-57 Document 03
AFP MATTER
AFP MATTER Issue
Three men were charged with conspiracy to defraud the Australian
Government while working for an Australian public service agency.
Two men were found guilty on 7 July 2022 following a jury trial in the ACT
Supreme Court.
A separate criminal trial relating to the third man is scheduled to
commence in July 2022.
Headline Response
The Department of Finance referred this matter to the Australian Federal
Police (AFP) in July 2019.
The Government expects staff working in Australian public service
agencies to adhere to the highest standards of conduct. I respect the
outcome reached by the jury in this matter.
Talking Points • The matter original y came to the attention of the Department through the
Public Interest Disclosure regime (under the
Public Interest Disclosure
Act 2013). Finance has appropriate mechanisms in place to respond to these
issues as has been demonstrated by the Department’s handling of this matter.
• The matter related to the supply of information technology contractors and
was referred to the AFP in July 2019.
• Fol owing investigations, the AFP charged three men with conspiracy to
defraud the Australian Government while working for an Australian public
service agency.
• The integrity of the Department’s services and programs was not
compromised.
• Subcontractors who had no involvement with the al eged conspiracy to defraud
were not prevented from working for the Commonwealth and were re-
engaged in the Department’s services and programs as necessary.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: BES
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000072
Date Last Printed: 12/08/2022 2:06 PM
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FOI 22-57 Document 03
AFP MATTER
Policy Commitments - N/A
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: BES
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000072
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 03
AFP MATTER
Background
The Department referred a matter to the AFP in July 2019 and has worked with the
AFP in relation to its ongoing investigation. On 10 June 2020 the AFP executed a
number of search warrants, including a warrant by appointment at the Department
of Finance premises.
On 10 June 2020 the AFP arrested and charged three individuals.
On 11 June 2020, the individuals appeared before the ACT Magistrates Court where
al three were charged with conspiracy to defraud the Commonwealth. Two of the
individuals were also charged with abuse of public office, and they were al released
on bail. The CDPP subsequently withdrew the charges relating to abuse of public
office.
The AFP released a media statement on 11 June 2020 (Attachment A) advising of
this matter. The statement notes that the Department of Finance reported this
matter to the AFP in July 2019, has referred substantial information to support the
AFP’s inquiries and that investigators are continuing to conduct financial enquiries.
The Department also released a statement on 11 June 2020 (Attachment B) advising
of this matter and confirming the Department expects anyone it engages to act with
the utmost honesty, integrity and probity and wil take strong action should this not
be the case.
A further media statement was issued by the AFP on 1 July 2020 (Attachment C)
advising that the AFP-led Criminal Assets Confiscation Taskforce had restrained
assets including seven houses, motor vehicles and bank accounts worth an
estimated $7.8 mil ion.
On 13 October 2021, the AFP executed a further warrant by appointment at the
Department’s premises.
Al 3 individuals entered a plea of not guilty. The criminal trial by jury in the ACT
Supreme Court relating to two of the individuals commenced on 31 May 2022 and
concluded on 7 July 2022. These two individuals were found guilty by the jury. A
number of current and former departmental employees were cal ed as witnesses to
give evidence in the first trial.
A separate criminal trial relating to the third individual is due to commence in July
2022 in the ACT Supreme Court.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: BES
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000072
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 03
AFP MATTER
Not for public release
Finance took immediate and appropriate action in relation to the individuals
involved and acted to confirm the integrity of Finance’s systems and services.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: BES
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000072
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 03
AFP MATTER
ATTACHMENT A: AFP MEDIA RELEASE
THREE MEN CHARGED WITH CONSPIRACY TO DEFRAUD THE
COMMONWEALTH
Publish date: Thursday, 11 June 2020, Publish time: 7:26am
Three men have been charged with conspiracy to defraud the Australian Government while working for
an Australian public service agency.
Police will allege the men conspired to direct information technology contracts through preferred
suppliers, and then received financial benefits as a result of this activity.
The matter was reported to the Australian Federal Police (AFP) in July 2019 by the Department of
Finance, and an investigation was undertaken by AFP Northern Command’s Fraud and Anti-Corruption
Team.
Investigators executed a total of seven search warrants yesterday in the Canberra suburbs of Griffith,
Barton, Narrabundah, Amaroo, Palmerston and Forrest in cooperation with the Department of Finance.
A 47-year-old Griffith man and a 50-year-old Palmerston man are due to face ACT Magistrates Court
today (11 June 2020) charged with:
Conspiracy to defraud the Commonwealth, contrary to section 135.4 of the
Criminal Code Act 1995
(Cth) and
Abuse of public office, contrary to section 142.2 of the
Criminal Code Act 1995
A 36-year-old Barton man will also face ACT Magistrates Court today (11 June 2020) charged with:
Conspiracy to defraud the Commonwealth, contrary to section 135.4 of the
Criminal Code Act 1995
(Cth)
The maximum penalty for defrauding the Commonwealth is 10 years imprisonment. The maximum
penalty for abuse of office is five years imprisonment.
AFP Deputy Commissioner Ian McCartney said the AFP is committed to identifying and prosecuting
anyone who misuses public money for their own greed.
“Fraud is not a victimless crime and when public funds are used for personal gain, people are taking
valuable funds away from essential services like hospitals and schools, impacting on all of us,” he said.
“This is a complex investigation, involving the analysis of a significant volume of information. This
includes substantial information referred to the AFP by the Department of Finance, and investigators
will continue to conduct financial enquiries to ensure we have a complete understanding of this matter.”
Media enquiries
AFP Media: (02) 5126 9297
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: BES
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000072
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 03
AFP MATTER
ATTACHMENT B: STATEMENT ON DEPARTMENT WEBSITE
DEPARTMENTAL STATEMENT
Date 11 June 2020
The Department of Finance reported a matter to the Australian Federal Police (AFP) in July 2019
related to the supply of information technology contractors.
The Department referred substantial information to the AFP and has been working with the AFP to
support their investigations.
As a result of these investigations the AFP have charged three men with conspiracy to defraud the
Australian Government while working for an Australian public service agency.
The Department expects anyone it engages to act with the utmost honesty, integrity and probity and
will take strong action should this not be the case.
As this matter is before the Court, it is not appropriate to comment further.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: BES
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000072
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 03
AFP MATTER
ATTACHMENT C: FURTHER AFP MEDIA RELEASE
$7.8 MILLION RESTRAINED FOLLOWING THE RECENT ARREST OF
THREE MEN CHARGED WITH CONSPIRACY TO DEFRAUD THE
COMMONWEALTH
Publish date: Wednesday, 1 July 2020, Publish time: 7:24am
The Australian Federal Police-led Criminal Assets Confiscation Taskforce (CACT) has restrained assets
including seven houses, motor vehicles and bank accounts worth an estimated $7.8 million. This action
follows the 10 June 2020 arrest of three men charged with conspiracy to defraud the Australian
Government while working for an Australian public service agency in Canberra.
The CACT will allege the men conspired to direct information technology contracts through preferred
suppliers, and then received financial benefits as a result of this activity, some of which was then used to
purchase and renovate residential properties in Canberra.
The matter was reported to the AFP in July 2019 by the Australian public service agency, and an
investigation was undertaken by AFP Northern Command’s Fraud and Anti-Corruption Team.
The three men arrested were:
A 47-year-old Griffith man and a 50-year-old Palmerston man charged with:
Conspiracy to defraud the Commonwealth, contrary to section 135.4 of the
Criminal Code Act 1995
(Cth)
; and
Abuse of public office, contrary to section 142.2 of the
Criminal Code Act 1995 (Cth)
.
A 36-year-old Barton man charged with:
Conspiracy to defraud the Commonwealth, contrary to section 135.4 of the
Criminal Code Act 1995
(Cth)
.
The AFP-led CACT, which includes staff from the Australian Criminal Intelligence Commission,
AUSTRAC, Australian Border Force and the Australian Taxation Office, was formed in 2011 as part of
a multi-agency crackdown on criminal assets.
Media enquiries
AFP Media: (02) 5126 9297
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: BES
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000072
Date Last Printed: 12/08/2022 2:06 PM
Page
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FOI 22-57 Document 04
ASL
ELECTION COMMITMENT - PUBLIC SECTOR STAFFING Issue
This Government is committed to rebuilding Australian Public Service
(APS) capability.
Headline Response
The Government has abolished the Average Staffing Level (ASL) cap and is
undertaking an audit of employment within the APS as part of our
commitments to rebalance and rebuild the capability of the APS.
Talking Points
• Our Government is committed to building the capacity and capability of the
public service and, as a model employer, taking steps to create more secure
employment with fair and equitable conditions.
• To help achieve these goals, we have abolished the previous Government’s
Average Staffing Level cap – meaning Commonwealth entities wil be able to
hire permanent APS staff to fil permanent APS roles.
• We are determined to target the growth in insecure work in the APS by
identifying where work can be done more efficiently and effectively by public
servants in direct, permanent jobs.
• By rebalancing the public service workforce, our Government wil also make
sensible and staged savings from outsourcing arrangements on external private
labour.
Policy Commitments
• As part of
Labor’s Plan for a Better Future,
Labor’s Plan to Improve the Public
Service, and
Labor’s Plan to Reduce Waste and Reinvest in the Australian Public
Service, the Government has committed to a wide suite of APS related reforms,
including:
- Abolishing the ASL cap.
- Conducting an audit of employment within the APS.
Contact: Elicia Rudnicki
Cleared by: Cath Patterson
Contact No: (02) 6215 3692
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 05/07/2022
PDR Number: QB22-000074
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 04
ASL
- Reducing spending on consultants, contractors, and labour hire (col ectively
known as external private labour).
- Reinvesting in APS capability, including 1,080 new secure frontline service
delivery jobs at Services Australia, the Department of Veterans’ Affairs, and
the National Disability Insurance Scheme.
- Developing the APS into a model employer – one that has the capacity and
capability to deliver better outcomes for Australia.
Contact: Elicia Rudnicki
Cleared by: Cath Patterson
Contact No: (02) 6215 3692
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 05/07/2022
PDR Number: QB22-000074
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 04
ASL
Background
On 25 May 2022, in a joint press conference with the Treasurer, the Finance
Minister said “I’ve indicated that I think labour hire is a sensible place to focus on
because they are in those areas where there’s high use of labour hire in permanent
jobs where they are more expensive than permanent jobs. We can start looking at
that rebalancing work there”.
On 25 May 2022, in an interview with ABC News, the Finance Minister said in
response to a question about labour hire “…we think there’s some rebalancing that
needs to go on and we would start by taking a 10% save, but also looking at how we
reinvest additional y back into the public service…it is definitely trimming spending,
but it’s also about rebalancing and building up capability in the APS”.
On 27 April 2022, Labor released its plan for a
Better Economy, Better Budget and
Better Future which stated that “Labor wil make sensible and staged savings from
outsourcing arrangements and contractors, consultants and labour hire. We wil
reduce spending on outsourcing by $3 bil ion over the forward estimates”.
Contact: Elicia Rudnicki
Cleared by: Cath Patterson
Contact No: (02) 6215 3692
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 05/07/2022
PDR Number: QB22-000074
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 05
BRETT CATTLE
LIVE CATTLE EXPORT BAN CLASS ACTION
Issue
“Why has the Government not yet compensated those impacted by the
2011 ban on live cattle exports?”
Headline Response
In such large, complex class actions, determining who is entitled to
compensation and how much they are entitled to takes time – both the
claimants’ lawyers and the Commonwealth have been working on this
since the court decision in June 2020.
Talking Points • Supporting Australian industry is one of the Government’s key priorities.
• The Government compensated the original claimant, Brett Cattle Company Pty
Ltd, in August 2020.
• Since the court decision, the Australian Government Solicitor has been working
constructively with the claimants’ lawyers to progress the related claims.
• The Commonwealth is progressing the related claims consistently with
the
Legal Services Directions 2017.
• As this matter is currently before the courts, it would not be appropriate to
comment further.
Policy Commitments
N/A
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 08/07/2022
PDR Number: QB22-000075
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 05
BRETT CATTLE
Background
This class action arises from the decision of Justice Rares on 2 June 2020 in
Brett
Cattle Company Pty Ltd v Minister for Agriculture, Fisheries & Forestry & Anor [2020]
FCA 732. His Honour found that the order made by the then Minister Ludwig on
7 June 2011 to suspend live exports to Indonesia was unlawful and that the former
Minister had committed the tort of misfeasance in public office.
The 2021-22 Budget included funding to settle compensation and legal costs
associated with claimants arising from the judgment. Payments to affected
claimants wil be met by the Commonwealth’s insurance scheme, Comcover.
The Department of Finance (Finance) is working closely with the Australian
Government Solicitor (AGS) and the claimants’ legal representatives, MinterEl ison,
on the quantum of claims and legal costs.
On 18 March 2022, MinterEl ison provided the relevant information for the
Commonwealth to start assessing these claims. (The Commonwealth had requested
this information on 21 May 2021.)
Payments to Brett Cattle in the original proceedings
The Commonwealth has paid damages of $2,936,629.99 (exclusive of interest;
$2,949,138 inclusive of interest) on 6 August 2020 to Brett Cattle Company Pty Ltd.
(This is public knowledge.)
On 9 July 2021, the Commonwealth also paid MinterEl ison’s legal costs in relation
to the conduct of the matter between 27 October 2014 and 29 June 2020, in
accordance with court orders.
- The quantum of this payment is confidential. Finance would need to seek
legal advice in response to any request to release this figure. s4
Recent media
In May 2022, some media outlets reported the fact that MinterEl ison had provided
the Commonwealth with information in March and the estimated quantum of
damages (see for example the article at Attachment A).
In response to subsequent media enquiries, Finance noted that AGS is working
constructively with the claimants’ legal representatives to progress the claims
consistently with the
Legal Services Directions 2017, but were unable to comment
any further as the matter is currently before the court.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 08/07/2022
PDR Number: QB22-000075
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 05
BRETT CATTLE
Not for public release It is understood from the last Court Report on 20 May 2022 that there are currently
190 Funded Group Members, 10 potential group members and 12 Unfunded Group
Members (represented by McCullough Robertson Lawyers) who are applicants in
this matter. S 45
The Commonwealth is currently analysing the global settlement sum estimate,
methodology and assumptions, which is a complex process and wil take time.
No timeframe for resolution has been set by the court. The parties are required to
regularly update the court on the progress of negotiations. The next Court Report is
due on 22 July 2022.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 08/07/2022
PDR Number: QB22-000075
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 05
BRETT CATTLE
Attachment A
Live export ban class action costs could
more than triple for federal government
ABC Rural
/ By Michelle Stanley, Stephanie Sinclair, and Hugo Rikard-Bell
Posted Thu 12 May 2022 at 9:14amThursday 12 May 2022 at 9:14am
Compensation and interest costs associated with the 2011 live cattle export ban are
expected to triple to almost $2 bil ion.
(ABC News: Steve Cavenagh)
It has been 11 years since the federal government's snap ban on live cattle exports
devastated the northern pastoral industry, and those fighting for compensation remain up
to $2 billion out of pocket.
Key points:
•
It is expected the total bil for the 2011 government's ban on live cattle exports to
Indonesia will be close to $2 billion
•
Initial estimates had put costs at $600 mil ion
•
People within the industry say they are frustrated by the slow process, two years after the
Federal Court deemed the ban 'unlawful'
A class action against the Commonwealth has submitted its final analysis of the financial
impact of the ban, pinning the damage at $1.2 bil ion, with a further $800 million in
interest.
Previous estimates had put the cost at $600 mil ion, which increased to $800 mil ion as
claimants rose in 2021.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 08/07/2022
PDR Number: QB22-000075
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 05
BRETT CATTLE
Class action facilitator, Tracey Hayes, said the process had been a long and frustrating
experience for claimants, who were stil paying the price.
"I think about it like rust in their balance sheet; they have existing and compounding levels
of debts that shouldn't be there, that is there as a result of this illegal decision by
government," she said.
"The important piece for us is to get the compensation out the door and returned to
people that were devastated and had their businesses impacted.
"It's been a long decade."
The class action's analysis was submitted to the Department of Finance six weeks ago, and
members are awaiting a response.
Only the lead claimant in the class action had been paid — the Brett Cattle Company.
The Department of Finance confirmed it was progressing the claims but was unable to
provide further comment.
Ms Hayes said the upcoming federal election should not cause further delays to the
finalisation of the class action.
Live export class action facilitator, Tracey Hayes, says analysis of the claims has been sitting
with the federal department of finance for more than six weeks.
(Supplied: Facebook NTCA)
Pastoralists went broke waiting
Gilnockie Station's John Armstrong said the Federal Court ruling was a relief at the time,
but the delay in compensation had cost many of his friends in the industry their
livelihoods.
"It was just a cataclysmic event for us when it first happened. I know we put off several staff
that very next day," Mr Armstrong said.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 08/07/2022
PDR Number: QB22-000075
Date Last Printed: 12/08/2022 2:07 PM
Page
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"But a lot of people also went broke because the compensation usual y in terrible events ..
is generally fairly quickly derived, but now we're looking at 12 years nearly, and we're stil
waiting.
"As a result, many of our friends and many people have gone broke in the meantime
because they just couldn't bear the financial imposition of it."
It has been almost two years since the Federal Court deemed the 2011 live cattle export
ban 'unlawful'.
(ABC News: Josh Spong)
In addition to the direct financial impact, Mr Armstrong said the ban also impacted
production and property maintenance.
"[It caused] considerably great problems for many of us because we didn't do our
maintenance that we should have on our fences, and we didn't buy probably the right bulls
that we should have, and we didn't put supplement into the cattle we should have so,
therefore, our calving percentages went down.
"You're sort of compounding your costs of recovery by al those factors."
In Western Australia's Pilbara region, livestock export depot owner Paul Brown expressed
his frustration at the length of time compensation was taking.
He said the lengthy process had been a factor in the decision to sel his business.
"Certainly, for us at the feedlot it's been hard," Mr Brown said.
"We just can't afford to keep waiting in the hope that we can get some money out in the
end and invest in the feedlot and continue on."
Mr Brown said ongoing uncertainty had been concerning for the wider industry and
impacted further investment.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 08/07/2022
PDR Number: QB22-000075
Date Last Printed: 12/08/2022 2:07 PM
Page
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BRETT CATTLE
"It's very frustrating that we're 11 years since the suspension, two years since the [court]
decision, and there seems to be no light at the end of the tunnel in relation to the
finalisation of this action so that we can all move on," he said.
"Money's locked up that we don't have access to, and it means it's very hard to invest in
other things when you don't know what you're going to be getting at the end of it. If
you're going to get anything at all."
Hedland Export Depot owner Paul Brown says the delay in receiving compensation as part
of the class action has contributed to the decision to sel his business.
(ABC News: Rebecca
Parish)
'Hopefully' worth the wait, for those holding on
More than 10 years on from the original decision by then-agriculture minister Joe Ludwig,
the increasing compensation payout made the delay "worth the wait" according to John
Armstrong.
"I hope [it is worth the wait] for those who could hang on, but many couldn't, and went
broke in the meantime," Mr Armstrong said.
"In 2011 we thought we were going to set up a five-year [retirement] plan .. well, we're still
trying to formulate a five-year plan.
"It could've been handled much quicker, and the federal government of the day could've
put in place initiatives to handle it better."
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 08/07/2022
PDR Number: QB22-000075
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 06
BUY AUSTRALIAN
FUTURE MADE IN AUSTRALIA OFFICE Issue
“Why is the Government establishing a Future Made in Australia Office?”
Headline Response
“The Government is establishing a Future Made in Australia Office to
drive the Government’s 10-point
Buy Australian Plan, which will deliver
improvements to government procurement and maximise opportunities
for smal , regional and indigenous-owned businesses.”
Talking Points
• Each year the Australian Government spends approximately $70 bil ion on
procuring goods and services.
–
This spending is a significant economic driver, it stimulates growth in smal
and regional businesses and across industry sectors, ultimately al owing
businesses to employ more staff.
• The 10-point
Buy Australian Plan (the Plan) outlines the Government’s
commitment to maximise opportunities for businesses to participate in
Commonwealth procurement and contracts.
• Integral to the Plan is the establishment of a Future Made in Australia Office
(the Office) – the most significant procurement reform program in recent
times.
• The Office wil provide a coordinated approach to implementing the Plan across
Government.
–
The Office wil engage with industry to enable greater involvement in
government procurement by smal and medium enterprises (SMEs), with a
particular focus on regional and Indigenous-owned businesses.
–
The Office wil leverage the Commonwealth Procurement Rules (CPRs) to
actively support local industry to take advantage of government
purchasing opportunities.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000076
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 06
BUY AUSTRALIAN
–
It wil also act as a one-stop shop for government departments and
agencies for procurement capability uplift support.
• Scoping discussions for the Office are occurring in the Department of Finance,
in consultation with other key Government agencies, such as the Department
of Industry, Science, and Resources (DISR), and the Department of Defence.
• It is expected that the Office wil be established in August 2022.
• We have already begun the work of implementing the
Buy Australian Plan – on
1 July 2022, I announced changes to the Commonwealth Procurement Rules to:
–
boost the number of SMEs that can benefit from Government spending by
requiring 20 per cent of procurements by value to be sourced from SMEs,
doubling the previous target of 10 per cent; and
–
require officials to consider a procurement’s broader climate change
impacts when undertaking a value for money assessment.
Policy Commitments
• Under its 10-point
Buy Australian Plan, the Government has committed to the
establishment of the Office, backed by laws that lock in key elements of the
CPRs to actively support local industry to take advantage of government
purchasing opportunities (refer Attachment A).
• The Government has also committed to maximising smal business
participation in Commonwealth procurement under its
Better Deal for Smal
Business policy.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000076
Date Last Printed: 12/08/2022 2:07 PM
Page
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Background
Future Made In Australia Office (the Office)
On 9 October 2021, the Prime Minister (then Opposition Leader), made an address
to the NSW Labor State Conference announcing a 10-point
Buy Australian Plan (The
Plan). The first point of the plan is the creation of the Office.
A majority of media articles on the Office have been positive. However, some
express interest in further detail about the establishment and scope of the Office
(e.g. refer Attachment B)
Updates to the Commonwealth Procurement Rules (CPRs)
On 1 July 2022, in a joint media release between the Minister for Finance and the
Minister for Smal Business, the Government announced changes to the CPRs that
came into effect on 1 July 2022. The changes include:
• boosting the number of SMEs that can benefit from Government spending by
requiring 20 per cent of procurements by value to be sourced from SMEs,
doubling the previous target of 10 per cent;
• action on climate change, in line with the Government’s commitment to reduce
emissions, by requiring officials to consider a procurement’s broader climate
change impacts when undertaking a value for money assessment; and
• explicitly encouraging entities to approach multiple suppliers when procuring
from a panel arrangement. This improves competition, driving value for money
and ensuring a better deal for the taxpayer.
The Office wil work closely with the policy owners of the CPRs in line with the
Government’s commitment.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000076
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 06
BUY AUSTRALIAN
Not for public release
The Office is being scoped to reside within the Department of Finance independent
of, but in close proximity to, the whole-of-government domestic procurement and
international trade policy functions.
This level of proximity wil ensure that key policy enablers are able to independently
consider and develop proposed policy reforms, with the Office acting as an interface
between lead entities, industry voices and new and emerging policies.
It wil also ensure that the implementation of the
Buy Australian Plan appropriately
considers our free trade obligations.
The Department of Finance wil provide further briefing which wil specify the
establishment, design and scope of the Office once scoping discussions have
resolved.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000076
Date Last Printed: 12/08/2022 2:07 PM
Page
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Attachment A
Labor's Buy Australian Plan | Policies | Australian Labor Party (alp.org.au)
An Albanese Labor Government wil improve the way Australian Government contracts
work, ensuring more opportunities are available to Australian businesses and their
employees through our 10-point
Buy Australian Plan.
1. Establish a
Future Made in Australia Office, backed up by laws that wil lock in
key elements of Commonwealth Procurement Rules (CPRs) to actively support
local industry in taking advantage of government purchasing opportunities
2. Maximise opportunities for Aussie businesses in major infrastructure projects
3. Open the door to more government work for more small and medium businesses by
decoding and simplifying procurement processes
4. Establish a
Secure Australian Jobs Code to prioritise secure work in government
contracts and ensure that government purchasing power is being used to support
businesses that engage in fair, equitable, ethical and sustainable practices
5. Provide more opportunities for First Nations businesses with a view to maximise
skil s transfer so that we can get more First Nations workers into long-term skilled
work
6. Level the playing field by bringing in a Fair Go Procurement Framework requiring
those that gain government contracts to pay their fair share of tax
7. Supporting industry sectors through the government’s purchasing power
8. Use government spending power to take action on climate change and support
energy projects
9. Strengthen Defence industries and capability
10. Make National Partnerships work to maximise the use of local workers and
businesses
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000076
Date Last Printed: 12/08/2022 2:07 PM
Page
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Attachment B
https://www.innovationaus.com/a-future-made-in-australia-office-waits-on-detail/
A Future Made in Australia office waits on detail
Labor got a solid round of applause when it unveiled plans for a Future Made in Australia
Office last October in the run-up to the federal election as part of a 10-point Buy Australian
Plan.
It was broadly welcomed by industry as a no-brainer policy for building sovereign
capability, and for bolstering critical supply chains.
The policy very simply identified government procurement policy as “a major economic
lever available” to drive the economic recovery.
Unsurprisingly and within a day of the policy announcement, the tech industry was calling
for more detail. Since then, little has emerged about how the office wil work in practice.
Up to a point, the Future Made in Australia Office is a direct lift from the US, where Joe
Biden created a Made in America office in January last year with the signing of his first
executive order.
The US is far more wil ing to use the purchasing power of its federal government to
achieve industry development goals than Australia, which has for decades hamstrung
industry policy in this country.
The Joe Biden Made in America executive order put in place an America first procurement
policy. It meant that federal departments and agencies are required to apply for a waiver to
the Made in America office in the event they want to source product or services from a
non-US supplier.
President Biden appointed former trade union official and trade expert Celeste Drake as
the first Made in America director.
In Australia, it is far from clear how a comparable Future Made in Australia office will be
structured and what enforcement mechanisms wil be put in place to give it a chance of
success.
What we do know is that the office wil be housed within the Finance portfolio, which is
enough to make your heart sink if you are an Australian supplier.
In relation to ICT procurement at least, it is a sad reality that Finance views Australian
companies with disdain, regardless of how competitive these companies’ products are.
There is no premium too high that conventional Finance ‘thinking’ won’t pay in order to
make an overseas company the preferred supplier, rather than a local company with a
competitive and comparable product.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000076
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 06
BUY AUSTRALIAN
This is both a cultural and a systemic issue. The culture piece is the bigger obstacle, the
mountain that the new government must climb.
We don’t yet know what mechanisms this Future Made in Australia Office wil have to
enforce the ‘Buy Australian’ promise.
Wil departments and agencies need to apply for a waiver to buy from a non-Australian
supplier where a local supplier has a comparable product or capability? How will they be
required to demonstrate that a local supplier cannot be engaged?
Will they be required to provide a specific and public reason – and what powers wil the
Future Made in Australia Office have to overturn a decision?
While procurement rules have been changed to double the participation of Australian
SMEs from 10 per cent share of a Commonwealth entity’s procurement by value to 20 per
cent, these rules do little to build Australian capability at scale.
There has been a decades-long obsession with SME participation in Australian
procurement policy. If the intention of the policy is to assist smart local tech SME’s to
become large successful companies, where are they?
The focus should be on Australian companies. And any opportunity there is to give an
Australian company a prime contract role on large tech projects should be taken.
What the new procurement rules do not do is to apply specific weighting to the full retained
economic benefit of local supplier operations when departments are working out their
value for money calculations.
The other issue is the structure of the Future Made in Australia Office. What role the
Industry minister wil have in its operation?
That minister is Ed Husic, and he was standing next to the now Prime Minister when the
Buy Australian Plan was announced last year as a policy Labor would take to the May
election. But the office is in Finance, and that’s a place that is simply not industry friendly.
When Anthony Albanese unveiled the policy, he said Ed Husic and Finance minister Katy
Gallagher would both lead a Cabinet sub-commit ee on procurement. How this works is
unclear. The sub-committee is not yet constituted.
But a Cabinet committee is outside of the sightlines of the local industry. How wil progress
be measured? And how wil that progress be communicated?
James Riley
Editorial Director
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000076
Date Last Printed: 12/08/2022 2:07 PM
Page
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FOI 22-57 Document 07
COLLINS SUBMARINES
ASC: LIFE OF TYPE EXTENSION (LOTE) TO THE COLLINS CLASS
SUBMARINES Issue
Wil the LOTE for the
Collins cover any submarine capability gap in the
2030s?
Headline Response
The Government is engaging closely with the United States and the
United Kingdom to ensure there wil be no capability gap as Australia
transitions to nuclear-powered submarines. This includes considering al
options for the continuity of a submarine-based capability including
extending the life of al six
Collins Class submarines which wil support the
ongoing service of the
Collins Class submarine fleet through to 2048.
Talking Points
• The LOTE Program is a key enabler for Australia’s continued deployment of
submarine capability throughout the 2030s and 2040s, and plays a vital role in
maintaining the capability throughout an extended operational period.
• The Program wil address age-related, supportability and obsolescence issues
and equip the
Col ins Class fleet with modern systems to provide an enduring
and potent submarine capability - critical to Australia’s national security.
• The LOTE Program wil directly support development and retention of a
sovereign shipbuilding workforce, specifical y skil ed in design, construction and
sustainment of submarines.
• ASC is well positioned to deliver the LOTE Program. ASC employs more than
1600 Australians, which comprises the nation’s most experienced submarine
workforce. The company built the
Col ins fleet and continues to sustain and
continuously improve the submarines in response to the capability
requirements of the Royal Australian Navy.
• Currently, ASC is in the systems design phase of the LOTE Program, which is on
track to commence modifications to HMAS
Farncomb in mid-2026.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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If pressed about a submarine capability gap
• The Government is committed to the acquisition of nuclear-powered
submarines to ensure the Australian Defence Force is equipped to protect
Australia and contribute to the stability and security of our region.
–
The Government is undertaking an 18-month consultation process with
the United States and the United Kingdom, expected to be finalised in
March 2023.
• This consultation process wil al ow the Government to consider the ful suite of
requirements for a nuclear-powered submarine and the optimal pathway for its
acquisition and ensure there is no capability gap.
• The Minister for Defence has stated that ‘extending the life of
Col ins wil be
part of the solution’ to fil the gap for the nuclear-powered submarines build.
If asked about “Son of Collins” and interim capabilities
• The Government is examining al options to manage the transition from the
Col ins Class but has not made a decision on whether to pursue an interim
submarine platform.
ASC is engaging suppliers to support LOTE design
• ASC has engaged SAAB Kockums (designer of the
Col ins fleet) as a capability
partner to embed specialists into the LOTE design team using a short-term
arrangement, ahead of a longer-term contract being finalised.
–
A smal number of SAAB Kockums staff are currently located within the
ASC design team.
–
Further SAAB Kockums employees are expected to be integrated into the
program in the future. They wil be supported through reach-back to SAAB
Kockums in Sweden.
• ASC is also in contract with Jeumont Electric for the main motor, Rol s-Royce
Solutions (formerly MTU) for the diesel generators, and Euroatlas for the
power conversion equipment for the systems design phase of the LOTE
Program.
• ASC wil be progressively contracted over the next two years for the
procurement of long lead items for LOTE, and wil further engage key suppliers.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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If pressed about SAAB Kockums participation in LOTE
• The relationship between ASC, SAAB Kockums and Defence is both positive and
productive.
–
Defence continues to support ASC in its ongoing engagement with other
companies, including SAAB Kockums.
• ASC is actively engaging with SAAB Kockums and they wil play an important
role in the successful delivery of
Col ins LOTE.
Attack Class settlement
• On 11 June 2022, the Government announced a mutual y-agreed, fair and
equitable settlement with Naval Group at a cost of approximately $830 mil ion
(€555 mil ion) (at Attachment A).
–
This confidential settlement concludes the decision of the former
Government to terminate the contract for the
Attack Class submarine
program.
• As a result of the settlement, total direct expenditure on the
Attack Class
submarine program is $3.4 bil ion, from an approved budget of $5.4 bil ion.
–
This is inclusive of Lockheed Martin Australia’s costs associated with the
Attack Class combat system contract.
• The conclusion of the
Attack Class submarine program wil al ow Australia to
move forward with its relationship with France.
Policy Commitments
• The Government has committed to the acquisition of nuclear-powered
submarines under the AUKUS trilateral security partnership and to strengthen
submarine capability for al six
Col ins Class submarines through the LOTE
Program.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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Background
On 16 September 2021, the previous Government announced approval for the Life
of Type Extension to al six submarines in the
Col ins Class submarine fleet from
2026 in South Australia.
In October 2021, ASC executed a contract with Defence for System Design and
Detailed Design for the Core Projects of the LOTE Program to May 2024, estimated
at s 45
for the ASC-held component.
• Additional scope is pending Government consideration and approval. When
the full scope wil be finalised is a question for the Minister for Defence.
The scope of the LOTE Program, which is estimated to cost $4.3 to $6.4 bil ion, as
outlined in the
Force Structure Plan 2020, includes:
• changes to the equipment in the submarine within the original design
parameters for the
Col ins Class, including an upgrade to propulsion and
power distribution systems, diesel motors and generators; and
• an optronics upgrade to improve the
Col ins Class’ surveil ance and
intel igence gathering capability.
The LOTE Program has experienced some delays due to COVID-19 resulting in
rescheduling of some trials to support design development.
• This has been managed within the program’s overal schedule, with
HMAS
Farncomb the first boat to commence it’s LOTE in 2026, fol owed by
the rest of the
Col ins fleet on a two-year cycle.
On 20 June 2022, The Australian published an article stating ASC is not engaging
with SAAB Kockums to conclude a proposed teaming agreement to deliver
Col ins
LOTE (Attachment B refers).
On 7 July 2022, the Minister for Defence was interviewed by ABC Radio Adelaide
and stated that ‘extending the life of
Col ins wil be part of the solution’ to fil the
gap for the nuclear-powered submarines build and ‘there wil definitely be
life‑of‑type extensions on the
Col ins submarines’ (Attachment C refers).
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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Attachment A
NAVAL GROUP SETTLEMENT
MEDIA RELEASE
11 Jun 2022
Prime Minister, Minister for Defence, Deputy Prime Minister,
Minister for Foreign Affairs
The Australian Government has finalised negotiations with Naval Group to conclude
the Attack class submarine program.
The former government made the decision to terminate the contract on the basis of
advice about capability requirements for the Australian Defence Force—advice that
was accepted by Labor in Opposition.
We have reached a fair and equitable settlement of €555 mil ion (around $830 mil ion)
with Naval Group.
Now that the matter is resolved we can move forward with the relationship with France.
Australia and France share deep historical ties of friendship, forged in common
sacrifice in war.
We are both vibrant democracies, committed to upholding human rights and
fundamental values.
We deeply respect France’s role and active engagement in the Indo-Pacific.
Given the gravity of the challenges that we face both in the region and globally, it is
essential that Australia and France once again unite to defend our shared principles
and interests: the primacy of international law; respect for sovereignty; the rejection of
all forms of coercion; and taking resolute action on climate change.
I look forward to taking up President Macron’s invitation to visit Paris at an early
opportunity, and to continuing to work closely with him as we deepen the strategic
partnership between our nations.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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Attachment B
COLLINS-CLASS REFIT IN TROUBLE OVER STAND-OFF WITH DESIGNERS
By Cameron Stewart Associate Editor, The Australian
Monday 20th June 2022 at 12:00am
The navy's plan to extend the life of its Collins-class submarines for another decade is in trouble,
with the country's naval shipbuilder, ASC, refusing to engage seriously with the submarine's
Swedish designer to help overhaul the ageing boats.
With planning under way for the $6bn life of type extension (LOTE) for the six Collins submarines,
the navy and ASC have shunned the boat's designer, SAAB, giving the company only a minor role
so far in the program. Defence insiders say only SAAB, as the original designer of the Collins-class
fleet, has the expertise to guide ASC through what wil be the most complex submarine refit
undertaken in Australia to try to extend the life of the fleet by a decade.
If the LOTE program cannot be completed on time, it will greatly increase the danger of a
capability gap in Australia between the retirement of the Col ins boats and the arrival of the first
nuclear-powered submarine.
SAAB has been unable to persuade ASC to conclude a proposed “teaming agreement” to join
forces to carry out the LOTE.
The only involvement for SAAB so far on the LOTE is a minor contract that allows for just seven
SAAB employees to be embedded with the company in a project that will involve hundreds of
engineers over a decade. “The bottom line is that the ability to keep the Collins-class boats in the
water for another decade wil be gravely undermined unless Defence agrees to bring in the
expertise of the actual designer of the submarines,” one insider said.
Defence has had a rocky relationship with SAAB ever since the troubled start to the Collins
submarines in the 1990s, where teething problems saw the new boats label ed by the media as
“dud subs”.
The navy's relationship with the designer, SAAB Kockums, worsened after the company was briefly
acquired by German shipbuilder HDW, including litigation disputes over intel ectual property
rights.
The lingering resentments saw Defence surprise many by excluding Sweden from the competitive
tender in 2016 between France, Japan and Germany to provide the future submarine.
However, the planned acquisition of nuclear submarines and the long timeline involved has made
it essential the life of the Col ins fleet be extended under the LOTE program.
SAAB has already completed midlife upgrades of two Gotland class submarines for Sweden's navy,
giving the company recent experience on major submarine upgrades in contrast to the ASC, which
has never attempted an upgrade.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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The LOTE program will take two years for each submarine progressively and will overhaul and
upgrade the submarine's propulsion and power distribution systems, diesel motors and generators
as well as an optronics upgrade.
Work is due to begin on the first boat, HMAS Farncomb, in 2026, with the upgrade of the last boat
being completed in 2038.
The fleet will retire one boat every two years from 2038.
ASC concedes that only a small number of SAAB employees is currently involved in the LOTE
design team but says more SAAB experts will be used in the future as the program matures.
“ASC is engaged with SAAB Kockums as a capability partner for design activities for LOTE,” an ASC
spokesperson said. “This has resulted in a small number of SAAB Kockums staff being temporarily
located within the ASC design team. Further SAAB employees are expected to be integrated into
the program in the future.”
ASC said it was currently designing the systems that would be used in the LOTE and had already
entered into design contracts with key suppliers for main motor, diesel generators and power
conversion equipment.
Defence Minister Richard Marles is expected to support the previous government's plan to put all
six Collins submarines through the LOTE program.
He is likely to force ASC to rely more heavily on SAAB's expertise if the shipbuilder continues to
keep the Swedish company at a distance.
Even if the LOTE program is successful, there is likely to be a capability gap between retirement of
the Col ins fleet and the arrival of the first nuclear boat in around 2040.
Mr Males is considering whether an interim conventional submarine is required to bridge this
expected gap.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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Attachment C
INTERVIEW WITH DAVID BEVAN, ABC RADIO ADELAIDE
7 July 2022
DAVID BEVAN: When an opportunity comes up to speak to the Deputy Prime Minister and
Defence Minister, we're going to grab it. I had that opportunity earlier this morning. He came out
to the ABC studios here at Col inswood and I began by asking him this question:
Since the election, how much have you learnt about the chal enges involved in acquiring a nuclear
powered submarine? Because I imagine you're in Opposition, it's a bit like you're in a dark room -
you're just trying to work out what's going on. You win office and suddenly the lights are turned
on. Were there any surprises?
DEPUTY PRIME MINISTER: It's a really good question. That's a pretty good analogy, actually. You,
kind of, in Opposition, are feeling your way around the room. You have a sense of what's in there
and you know that the lights are off, and you know that if you do get the opportunity of governing,
you'l get to turn the lights on and see it and that's what's happened. So, the answer is I've learnt a
lot. I would be honest in saying I've stil got a lot more to learn. There have been some learnings
which I hadn't expected, which I'm real y happy to share with you today. It's a huge chal enge. It's
really one of the biggest undertakings that our nation wil ever do, is to acquire a nuclear powered
submarine. But it's critically important and that last point is something that I could see from
Opposition. We do need this capability.
BEVAN: What was the most significant thing you learnt when you turned the lights on?
DEPUTY PRIME MINISTER: I think — and it's really the point I've been trying to make over the last
couple of days — it is critically important that we develop an industrial capability here in Australia,
and that means here at Osborne. The industrial capabilities of both the United States and the
United Kingdom when it comes to building subs are at full capacity. So, were we to make a
decision, for example, that we wanted to buy these submarines off the shelf, have them built
overseas, we would be putting ourselves in a very long queue and it would take a long time to get
the capability. So, in many ways, it's actually through the lens of AUKUS, it's our contribution to
the three nations that we do develop the industrial capability here in Australia to build submarines
— to build the nuclear powered submarines. And seeing it through that lens, that it's not just a
desirable thing for our industry, although it very much it, but it's actual y something that really is, I
feel, an obligation on the part of the country in terms of our commitment to AUKUS but is also the
pathway to getting the eight submarines the fastest.
BEVAN: So, you're saying there is no shortcut to getting a nuclear powered submarine?
DEPUTY PRIME MINISTER: Well, I'm looking at every avenue to get them as soon as possible, so if
there are shortcuts out there, which we can do thoroughly, I’ll be looking for them. But really, the
point I'm trying to make is that building capability here in Australia, here in Adelaide, is part of
getting there as fast as we can. And that's a real y important point for Australian industry to
understand, but it's an important opportunity for South Australia to understand.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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BEVAN: Do we know if we're going to get a British or American nuclear powered sub?
DEPUTY PRIME MINISTER: We don't yet. I mean, we know we'l get one of them.
BEVAN: Because it's almost a year since we tore up the French deal.
DEPUTY PRIME MINISTER: Not quite a year.
BEVAN: Well, it was around September, wasn't it, last year?
DEPUTY PRIME MINISTER: Indeed.
BEVAN: Yeah.
DEPUTY PRIME MINISTER: So, and I think the time frame that the former government set out then
is about right in terms of making its decision and, again, this is probably another learning for me. I
wondered whether or not from opposition this was an obvious decision. It's not. There is a process
to be worked through here in terms of, not just whether it's British or American, but exactly what
is the option that we wil pursue. That process is very much in ful swing. I do think being able to
make a decision in the early part of next year is right, and that's the time frame that we are
working to. We need to do that quickly and that would be quickly. It's important that we know
exactly what the option is that we are pursuing and then, in addition to that, what I've asked,
okay, if we make the decision about what we're going with, I want to know every possible way we
can bring that forward because time is of the essence.
We need this capability as quickly as
possible because a capability gap real y has been opened up by the former government. And if
there is then a capability gap, which we're expecting, how do we fil it?
BEVAN: When will the first nuclear powered submarine be ready for active service?
DEPUTY PRIME MINISTER: Good question, and I don't know the answer. I suppose the way I would
answer that is that when we took office, where the former government had left it, is probably the
answer to that question was in the mid 2040s. I'm really looking at ways in which we can try and
get that earlier because that is a long way off. And to put that date in some kind of context, when
Collins were first built, when the former government came to power in 2013, it was expected that
Collins would start to come out of service in the middle of this decades, in the next few years,
which would have meant that we would have expected to have a successor submarine, likewise, in
the middle of this decade. The fact that we are now looking at it in the 2040s is effectively a 20
year capability gap that we need to find an answer to. Now part of that, I think, is trying to work
out can we bring that date forward as far as possible, but
we are going to have to look at options
about how we get from this day, in 2022, to whenever that first sub gets in the water. And it's
simply not an option for the nation to have a decline in submarine capability over that period.
BEVAN: When we do get that boat, wil it have been built in Australia? Is there any doubt in your
mind about that?
DEPUTY PRIME MINISTER: The first boat?
BEVAN: The first boat.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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DEPUTY PRIME MINISTER: Wel , I think the answer to that is that the first boat wil have — there'll
be parts of it that are constructed in different parts of the world, and we know that now. In fact, if
we're being honest, we know that in relation to the last boat in the sense that the nuclear reactor
wil not be constructed in Australia, so that has always been clear. And even when you talk — well,
when we talk about Australian industry content on any vessel, it's never one hundred per cent, so
we're talking about a really, really complex machine which is going to have components that come
from — I was going to say all over the world, it's not all over the world but from a number of
countries. What is really clear, though, is we have to build the capability in Australia. Like, building
the industrial capability and really doing it as a quickly as we can is central to us getting these
capabilities as fast as possible.
BEVAN: Can you understand why people listening right now — because this project is very
important, it's important to the whole nation, but of course it's very important to South
Australians because we expect to play a major role in building the things. Can you understand why
people listening right now would be thoroughly confused, thoroughly confused because we were
promised we were going to have these French built subs and they were going to be 80, 90 per cent
Australian content and then it went down to 60 per cent and then the whole thing was torn up.
We might get a British boat. We might get an American boat. You don't know when we're going to
get them. You don't know how much Australian content there's going to be in there, and this is
about the defence of the nation, for crying out loud.
DEPUTY PRIME MINISTER: Yeah, I think people are thoroughly confused and it has been a very
confusing nine years. I mean, the former government really were out there trying to get a
submarine from Japan, and they walked away from Japan. Then they did a deal with the French
and then they ripped up that deal a few years later. So, we have been all over the place as a nation
in terms of acquiring the successor to Collins.
That is why, effectively, over the period of the last
decade a 20-year capability gap has opened. I am very mindful of this. I'm very mindful that the
process that we are going through right now about choosing which option we run with, is
important. But real y when we announce that, we actual y need to be providing an announcement
to the Australian people - and very much the people of South Australia, an answer which ends that
confusion.
An answer which says here's the boat we're going to run with, this is the year in
which we're going to get this, this is the capability gap that is therefore opened up, and here is
how we're going to plug it. I think that's a kind of national capability message. I think there's an
additional message for those in South Australia which says and this is South Australia's role in it.
Now, South Australia is going to have a massive role in it. I mean,
what is really clear is that the
heart of the nation's shipbuilding effort, but submarine building effort as wel , is here in South
Australia. This is where the skil s are. This is where the infrastructure is. We need to get this
capability as soon as possible, so leveraging a strength, which is what Osborne is, is going to be
fundamental to that answer.
BEVAN: What's it going to cost?
DEPUTY PRIME MINISTER: Good question as wel . That announcement that we make at the
beginning of next year wil have to answer that question as wel , which is the cost. It is going to be
significant. But perhaps it's at this point, which is why do submarines matter? Submarines matter
because they, of all the platforms we have, are the one which has the capacity to put the biggest
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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COLLINS SUBMARINES
question mark in any adversary's mind. They are pound for pound, dollar for dollar, the best way
we can acquire capability which builds Australia's strategic space. What does that mean? That
means empowering Australia to act in the world. I don't mean just in a military sense, but in terms
of our diplomacy, in terms of our trade. Getting the hard power equation right is fundamental y
important in terms of building our strategic space so that we can pursue a national interest in the
world. And as an island trading nation that really matters.
BEVAN: Are you going to be - because you've got to build these nuclear powered submarines, but
you've also got to plug the gap, and then we're talk about extending the life of Col ins or the son of
Col ins. Is al of that going to be done down at Osborne? And when you're building facilities for an
extension of Collins or a replacement of Collins - son of Col ins - and a nuclear powered submarine,
it's like trying to tap your head and rub your tummy at the same time. I mean are these facilities
going to be compatible? Or are you trying to do too much down at the one spot?
DEPUTY PRIME MINISTER: Again, a real y good question. I think the way to answer that is, in terms
of how we plug the gap, my mind is very open to really whatever possibilities are out there based
on the amount of time that we need to cover, if that makes sense. And we don't know the answer
to that yet because of where the process is up to, but that, in turn, means it's really important as
we sit here in July of ’22 that we have an open mind, and mine is open
. I think the one thing we
do know is that extending the life of Collins wil be part of the solution. We also know that
Osborne is Collins central, if I can put it that way. And so Osborne is going to have a real y
important role. Osborne is where we will develop the capability around nuclear-powered
submarines. Osborne is Collins central. I mean, there is some shorter-term maintenance which is
done in Western Australia, but Osborne is where Collins was built. It's where the full cycle docking
occurs now. It's where the life of type extension wil happen, and that's an important thing for
people to understand as wel .
And there wil definitely be life of type extensions on the Collins
submarines.
BEVAN: And you can do al of that down at Osborne and build a facility that wil build you a
completely different, in so many ways, nuclear powered submarine? You can do all of that down
at Osborne?
DEPUTY PRIME MINISTER: Well, the answer is yes. There is space there and yesterday, for
example, I was looking at actually the space that would be available where you could do exactly
those things. But I think it comes back to that first point. We need to be leveraging national
strength here if we're going to get this as quickly as possible. And playing to our strengths is
playing to Osborne. That's real y the point. In terms of Col ins and extending the life of Col ins and
whatever may happen there, that's where the infrastructure is. You've got the sheds, which is
where Col ins was built, which now does the full cycle docking. That’s a whole lot of infrastructure,
like massive infrastructure right there now, which is operating –
BEVAN: But you're going to have to build much, much bigger facilities for the nuclear powered.
DEPUTY PRIME MINISTER: No doubt.
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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BEVAN: And for the replacement, the stopgap, son of Col ins, if you have that. You're going to have
to — is there going to be dredging down there to fit these things? Because they're huge, aren't
they, they're much bigger than Col ins?
DEPUTY PRIME MINISTER: They would be. I think they are steps we need to consider going
forward.
But you know right now the infrastructure is there for Col ins and in terms of getting
Collins — well, extending the life of Collins – Osborne is central to that equation.
BEVAN: So, you need people.
DEPUTY PRIME MINISTER: Yes.
BEVAN: And you don't want to lose the people.
DEPUTY PRIME MINISTER: No.
BEVAN: So is basically what you're saying, Richard Marles, to South Australians and the entire
nation is just: hold on, be patient, you'll get answers in six months' time. We'll fill in the gaps early
next year?
DEPUTY PRIME MINISTER: Yeah, give me nine months, but in part that is right. But I think we are
also saying to South Australians that there is huge opportunity here. Whichever way you cut this,
there is massive opportunity for this state. We don't get to the end of this project or to the
maturation of this project without leveraging our national strengths and the strength is here. So,
whatever is the precise answer, it is a great opportunity for this state and for this city. And might I
say, the supply chains which are going to support this wil extend right across the country so
there'l be opportunities beyond South Australia as wel , but this is going to be the centre of it.
BEVAN: Richard Marles, thanks for your time.
DEPUTY PRIME MINISTER: Thanks for having me.
ENDS
Contact: Sacha de Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 21/07/2022
PDR Number: QB22-000077
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 08
COVID-19
COVID-19 ADVERTISING CAMPAIGN
Issue
What campaign advertising activity is the Government undertaking on
COVID-19?
Headline Response
Given the significant health impacts of COVID-19, communication to
inform the public about the Government’s preventive health measures
continues, most importantly by encouraging Australians to get
vaccinated.
Talking Points
• Advertising activities continue to encourage uptake of the COVID-19
vaccination program. New advertising materials encourage Australians to stay
up to date with their COVID–19 and influenza vaccinations:
–
Winter Vaccination;
–
Winter Vaccination (First Nations People);
–
Boost (First Nations People); and
–
Five to 15 year old Vaccination campaigns.
• The Winter Vaccination –
Take on Winter campaign reminds Australians of the
need to stay up to date with their COVID–19 and influenza vaccinations to help
protect them from serious il ness. The campaign launched on 23 June 2022.
• The Winter
Vaccination –
Winter is the Best Time (First Nations People)
campaign is a bespoke campaign specifical y targeting First Nations audiences
reminding people of the importance of staying up to date with their influenza
and COVID–19 vaccinations. The campaign launched on 23 June 2022.
• The tailored
Boost campaign reminds First Nations audiences of the reasons to
get a COVID–19 vaccine booster shot and encourages people to take action and
talk to their healthcare worker about getting a booster shot. The campaign
launched on 23 June 2022.
Contact: Sal y Harris
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2503
Contact No: (02) 6215 2668
Division: Governance/Communications Advice
Cleared by Adviser:
Date Updated: 6/07/2022
PDR Number: QB22-000078
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 08
COVID-19
• The Five to 15 year old vaccinations –
Kids wil be Kids campaign aims to
address parents’ key barrier to the uptake of the COVID-19 vaccine for their
children by reassuring them the Therapeutic Goods Administration has
rigorously assessed the safety and efficacy of the vaccine and approved it for
children. The campaign launched on 27 June 2022.
• Questions in relation to further detail on the COVID-19 campaign should be
directed to the Minister for Health and Aged Care.
Policy Commitments • N/A.
Contact: Sal y Harris
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2503
Contact No: (02) 6215 2668
Division: Governance/Communications Advice
Cleared by Adviser:
Date Updated: 6/07/2022
PDR Number: QB22-000078
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 08
COVID-19
Background
• The COVID-19 Vaccines campaign launched on 27 January 2021 and aims to
inform and reassure the Australian community about the safety and efficacy of
COVID-19 vaccines, provide confidence in the assessment and approval
process, raise awareness about who is eligible to receive the vaccines, and
support uptake of the vaccination program.
Contact: Sal y Harris
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2503
Contact No: (02) 6215 2668
Division: Governance/Communications Advice
Cleared by Adviser:
Date Updated: 6/07/2022
PDR Number: QB22-000078
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 09
COMCAR FLEET
COMCAR FLEET- ELECTRIC VEHICLE TRIAL
Issue
What is the Government doing to transition the COMCAR fleet to more
environmental y responsible vehicles?
Headline Response
Finance is aligning future COMCAR fleet decisions with the Government’s
low-emissions commitment.
Talking Points
• Government election commitment and part of
Powering Australia plan: to
convert the Commonwealth fleet to low-emissions vehicles with a target of
75% of new passenger vehicle leases and purchases by 2025.
• Finance is developing a future COMCAR fleet strategy to reach target.
• Finance initiated a transition to a more environmental y responsible fleet in its
2019 refresh of the COMCAR fleet, moving away from high-emission vehicles.
o In February 2021, Finance initiated a two-year trial to assess the viability of
electric vehicles (EVs) for future COMCAR fleets.
o Trial purpose: to assess infrastructure and operational capability
requirements.
o Trial is currently in its final stage with the EVs part of the Melbourne fleet,
having previously been in Canberra and Sydney.
• Finance has also commenced a process to assess the current Australian vehicle
market with a view to replacement of the current COMCAR fleet from
late-2023.
• In line with the Australian Government Fleet (AGF) Vehicle Selection policy,
COMCAR is assessing a wide range of vehicles, including Plug-in Hybrid Vehicles
(PHEVs), Battery Electric Vehicles (BEVs) and hydrogen vehicles to identify fit
for purpose options.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000079
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 09
COMCAR FLEET
• It is expected that a decision on the most appropriate future fleet vehicles wil
be reached by the end of 2022.
If asked about shifting the COMCAR fleet to EV and/or 100% EV
• A thorough understanding of the required charging infrastructure and the risk
of disruption to service operations, wil inform whether a significant shift to EVs
is feasible.
• There are many factors determining if a 100% EV fleet would be prudent or
possible in the near future. Cost, supply, operational suitability and charging
infrastructure are al factors that we are considering and assessing.
If asked how the EVs were chosen
• The vehicles included in the trial were selected using the Australian
Government Fleet Vehicle Selection Policy.
If asked why the Hyundai Ioniq lease was transferred to another agency
• The decision to transfer the lease was based on the performance and
assessment of the Ioniq during the trial.
• It was decided that due the vehicle being run-out in mid-2022 combined with
new EVs and technology now entering the Australian market, it would be more
beneficial to use the trial resources to assess emerging capabilities.
If asked whether the EVs wil inform future fleets
• Any decision regarding a future fleet wil be made using the AGF Vehicle
Selection policy, information drawn from the trial and what vehicles are
available to the Australian market
.
If asked about COMCAR’s current fleet (BMW & Camrys):
• The COMCAR fleet comprises of approximately two thirds BMW 6 series and
one third Toyota Camry Hybrids.
• The current COMCAR fleet is comprised of a range of low-emission vehicles,
including over 50% of the ACT COMCAR fleet being Toyota Camry Hybrids.
These are primarily used for the parliamentary shuttle service in Canberra. The
remaining diesel-powered vehicles are fuel efficient and have far lower
emissions as compared to the previous petrol-powered fleet.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000079
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 09
COMCAR FLEET
Policy Commitments – N/A
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000079
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 09
COMCAR FLEET
Background
What vehicles are being used in the EV trial?
COMCAR original y leased two EVs, the Hyundai Ioniq and a Tesla Model 3 to assess
infrastructure and operational requirements of EV fleets. In May 2022, fol owing
trials in Canberra and Sydney and the fact that the vehicle was no longer available
from mid-2022, it was determined that the Hyundai Ioniq was not fit for purpose for
COMCAR’s use and the vehicle’s lease was subsequently transferred to DEWR. The
trial resources for the Ioniq have been moved to assessing new emerging EVs and
associated technologies.
In July 2022, COMCAR took possession of a BMW iX EV for one month, and is likely
to trial Telsa Model Y and a Kia Plug-in Electric Vehicle (PHEV) in the upcoming
months.
COMCAR is currently assessing a broad range of PHEVs and BEVs for future fleet use.
How long have the vehicles been leased for, and from when?
The Hyundai Ioniq and the Tesla Model 3 were leased for two years through the
Whole of Government fleet manager sgfleet. The BMW iX is due to be returned in
August 2022.
COMCAR received the Hyundai Ioniq in late November 2020 and the Tesla Model 3
in January 2021. COMCAR took possession of the BMW iX for one month in July
2022.
Where are the cars being charged?
COMCAR is utilising pre-existing facilities including public infrastructure,
infrastructure provided by the Australian Government fleet manager, standard
charging cables provided with the vehicles and chargers instal ed in COMCAR
depots.
How much are they being used?
The EVs are being used to support service delivery alongside the existing fleet,
subject to the availability of suitability EV trained COMCAR drivers.
Is there high demand over other vehicles?
Current standard operating practices are that vehicles are al ocated based on
operational requirements and availability. The EV’s wil be al ocated in accordance
with this standard practice.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000079
Date Last Printed: 12/08/2022 2:10 PM
Page
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COMCAR FLEET
Which ministers have used them so far?
Finance does not comment on individual use of COMCAR vehicles by
Parliamentarians.
Contact: s 22
Cleared by: Clare Walsh
Contact No: s 22
Contact No: (02) 6215 2175
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000079
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 10
MOP(S) TRAINING AND L&D
PARLIAMENTARIAN AND MOP(S) ACT EMPLOYEE LEARNING AND
DEVELOPMENT Issue
Is the Government committed to ongoing training for Parliamentarians
and MOP(S) Act employees on safe and respectful workplaces?
Headline Response
The Government is committed to professionalising management
practices, including offering formal and best practice training programs to
embed a safe and respectful workplace culture.
Talking Points
• The Government is committed to working together with al Members and
Senators to ensure that parliamentary workplaces are safe, supportive and
respectful.
If asked about the Safe and Respectful Workplaces (SRW) training
• The Safe and Respectful Workplace Training Program wil continue on an
ongoing basis for new Parliamentarians and MOP(S) Act employees.
• An annual refresher program is in development and wil commence in early
2023.
If asked about induction training for Parliamentarians
• Finance rol ed out a refreshed Induction Program for new Parliamentarians in
June 2022.
• The induction program focused on safe and respectful workplaces, WHS
obligations, diversity and inclusion, office structure and staffing, recruitment
practices and performance management.
• 46 parliamentarians participated in the induction training.
If asked about induction training for MOP(S) Act employees
• Finance wil rol out a face-to-face Induction Program for new MOP(S) Act
employees from August 2022 with a specific focus on safe and respectful
workplaces and available supports.
Contact: s 22
Cleared by: Dean Edwards
Contact No: s 22
Contact No: (02) 6215 2250
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 25/07/2022
PDR Number: QB22-000080
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 10
MOP(S) TRAINING AND L&D
• An online Induction Module is available to al MOP(S) Act employees on the
MOP(S) Learning platform.
Policy commitments
• N/A.
Contact: s 22
Cleared by: Dean Edwards
Contact No: s 22
Contact No: (02) 6215 2250
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 25/07/2022
PDR Number: QB22-000080
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 10
MOP(S) TRAINING AND L&D
Background
The Safe and Respectful Workplace Training Program commenced on 20 September
2021 and is delivered under contract by PricewaterhouseCoopers (PwC).
Since its commencement (until it was paused in February 2022), 514 sessions have
been delivered to 223 parliamentarians (98%) and 1,800 MOP(S) Act staff (92%).
The previous Finance Minister signed a determination mandating the training for
Government staff. This determination remains in place until amended or revoked.
The Set the Standard Report recommended reviewing and strengthening induction
processes for Parliamentarians and MOP(S) Act employees (Recommendation 12).
Contact: s 22
Cleared by: Dean Edwards
Contact No: s 22
Contact No: (02) 6215 2250
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 25/07/2022
PDR Number: QB22-000080
Date Last Printed: 12/08/2022 2:10 PM
Page
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FOI 22-57 Document 11
DATA SCHEME
IMPLEMENTING THE DATA AVAILABILITY AND TRANSPARENCY ACT 2022 Issue
What is the Government doing to make sure the
Data Availability and
Transparency Act 2022 is implemented effectively and on time?
Headline Response
The Government is implementing the Data Availability and Transparency
Act (DATA) Scheme help deliver better government services, policies and
programs, and support world-leading research and development.
Accreditation of Australian, state and territory government agencies
opened on 1 June 2022 and will open to Australian universities on 1
August 2022.
Talking Points
• The Act establishes a new best practice scheme for sharing Australian
Government data, underpinned by strong safeguards and consistent, efficient
processes – the DATA Scheme.
• The Scheme is focused on increasing the availability and use of Australian
Government data to help deliver better government services, policy and
programs, with people and business at the heart. It wil also support world-
leading research and development.
• In accordance with legislated timeframes, the DATA Scheme opened on
1 June 2022, al owing Australian, state and territory government agencies to
apply for accreditation to participate in the Scheme – accreditation is one of
the many safeguards in place to keep data safe. Australian universities wil be
able to apply for accreditation from 1 August 2022.
Policy Commitments
• N/A
Contact: Susan Calvert
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Office of the National Data Commissioner
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000081
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 11
DATA SCHEME
Background
The
Data Availability and Transparency Act 2022 commenced on 1 April 2022.
With the DATA Scheme now open for business, the Office of the National Data
Commissioner is focused on standing up the Scheme (e.g. making rules for the
Scheme to operate); educating scheme participants; and delivering supporting
programs:
− The $16.5 mil ion Data Discovery initiative is helping Australian Government
agencies to develop data inventories and funding an Australian Government
Data Catalogue to help users find data.
− Dataplace ($11 mil ion) is a digital platform launched on 1 June 2022 for
scheme participants and others to manage data requests and support
administration of the Scheme.
The Minister for Finance is responsible for administering the Act. The Act establishes
the National Data Commissioner, an independent statutory officer, as the regulator
of the Scheme. The Commissioner provides advice and guidance about the Scheme’s
operation to the Minister, scheme participants and others, and oversights the
delivery of education and tools to support best practice data handling and sharing.
The Commissioner is supported by the Office of the National Data Commissioner
who are employees of the Department of Finance. The Act also establishes a
National Data Advisory Council to advise the Commissioner on data sharing issues
such as ethics, privacy protections, trust and transparency, technical best practice
and industry and international developments.
Organisations that can participate in the Scheme are government entities
(Commonwealth, State and Territory), and Australian universities. No other
organisations (including the private and non-for-profit sectors) can participate.
There is a review of the Act at three years (April 2025).
The Office of the National Data Commissioner has an annual budget of
approximately $10.6 mil ion per year. There is an additional funding for building the
IT platform, Dataplace and the Data Inventories Pilot Program.
Contact: Susan Calvert
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Office of the National Data Commissioner
Cleared by Adviser:
Date Updated: 20/07/2022
PDR Number: QB22-000081
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 12
ECONOMIC CONDITIONS
• On 28 July 2022, the Treasurer delivered to the Parliament a
Ministerial
Statement on the Economy which provided detail on the chal enges facing the
economy. The Statement highlighted updated Treasury forecasts that:
– Global growth wil be weaker (by half a percentage point in 2022 and 2023
than forecast in the Pre-Election Economic and Fiscal Outlook) which wil
place additional pressure on the Australian economy and Budget.
– The Australian economy grew by an estimated 3¾ per cent in 2021-22
instead of the 4¼ per cent forecast prior to the election, and the growth
would be ½ percentage point slower in 2022-23 and 2023-24 – reflecting a
weaker outlook for consumption, reduced dwel ing investment as wel as
reduced growth from net exports.
– Inflation wil peak at 7¾ per cent through the year to the
December quarter 2022 and only return to 2¾ per cent (and back inside
the RBA target band) by the middle of 2024.
– The unemployment rate wil return to around 4 per cent by June 2024 and
nominal wage growth wil increase to 3¾ per cent in 2022-23 and 2023-24
(with real wages expected to stabilise around mid-2023 before growing
again in 2023-24).
Policy Commitments
• The Government wil hand down a Budget on 25 October 2022 that seeks to
implement its election commitments, with priorities for new spending to:
– create jobs and boost participation;
– invest in lifting productivity, especial y through investment in human
capital;
– generate new business investment; and
– increase wages and grow incomes.
• The Government has committed to implementing a White Paper on
Full Employment, which wil be informed by an Australian Jobs Summit in
September.
• The Government has announced a review of the Reserve Bank of Australia,
which is due to report by March 2023.
Contact: s 22
Cleared by: Cath Patterson, Dep Sec
Contact No: s 22
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 29 July 2022
PDR Number: QB22-000082
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 12
ECONOMIC CONDITIONS
Background
International Outlook and Recent Economic Outcomes
International outlook
• In its
Economic Outlook of 8 June 2022, the OECD projected the global
economy to expand by 3.0 per cent in 2022 and 2.8 per cent in 2023
(downgrades of 1.5 per cent and 0.4 per cent, respectively, from its
December 2021 projections).
– The OECD considered that global economic prospects had worsened
significantly since its December 2021 projections, primarily due to Russia’s
invasion of Ukraine.
– It also noted that extensive lockdowns to control COVID-19 outbreaks in
China had reduced economic activity and affected supply chains.
– The OECD considered the risks to be biased to the downside
(i.e. economic growth outcomes were more likely to be lower than higher
than its projections).
• In its
World Economic Outlook Update of 26 July 2022, the IMF projects the
global economy to expand by 3.2 per cent in 2022 and 2.9 per cent in 2023,
downgrades of 0.4 per cent and 0.7 percentage points, respectively, relative to
its April 2022 projections.
– The IMF projects inflation to rise higher in 2022 than it had previously
projected – due to war-induced commodity price increases and a
broadening of other price pressures.
• The OECD’s June 2022 and the IMF’s July 2022 projections of global economic
growth are lower than the corresponding 2022-23 Budget forecasts.
Contact: s 22
Cleared by: Cath Patterson, Dep Sec
Contact No: s 22
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 29 July 2022
PDR Number: QB22-000082
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 12
ECONOMIC CONDITIONS
OECD and IMF projections of Australia’s economic growth
• In its
Economic Outlook of 8 June 2022, the OECD slightly upgraded its short
term outlook for the Australian economy, forecasting real GDP to grow by
4.2 per cent in 2022 (up 0.1 percentage point relative to its previous projection)
but slightly downgraded its outlook for next year, forecasting GDP to grow by
2.5 per cent in 2023 (down 0.5 percentage points).
– The slight upgrade to the OECD’s outlook for Australia in 2022 – in
contrast to its significantly downgraded global outlook – reflected the
Australian economy’s resilience to the Omicron outbreak as wel as the
impacts of higher commodity prices, which wil benefit Australia (as a net
commodity exporter) and help offset the impacts on Australia of slower
global growth.
• In its
World Economic Outlook Update of 26 July 2022, the IMF projects
Australia’s real GDP to grow by 3.8 per cent in 2022 and 2.2 per cent in 2023,
downgrades of 0.4 and 0.3 percentage points, respectively, relative to its
April projections.
National Accounts, March quarter 2022
• Real GDP rose by 0.8 per cent in the March quarter – to be 3.3 per cent higher
through the year.
– Growth was driven by solid contributions from household consumption,
public final demand and an accumulation of inventories.
– Net exports (and to a much smal er degree, dwel ing investment)
detracted from growth in the quarter as imports grew strongly and
exports declined.
• Nominal GDP rose very strongly in the March quarter, up 3.7 per cent – partly
due to a 5.9 per cent rise in the terms of trade. Through the year to the
March quarter, nominal GDP increased by 10.2 per cent and the terms of trade
increased by 8.3 per cent.
Inflation (CPI)
• The Consumer Price Index (CPI) increased in the June quarter, with headline CPI
rising by 1.8 per cent in the quarter to be 6.1 per cent higher through the year.
Contact: s 22
Cleared by: Cath Patterson, Dep Sec
Contact No: s 22
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 29 July 2022
PDR Number: QB22-000082
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 13
PEMS
PARLIAMENTARY EXPENSES MANAGEMENT SYSTEM (PEMS) Issue
New and improved PEMS features launched on 4 July 2022.
Headline Response
New enhancements to PEMS enable users to monitor office and travel
expense budgets, manage expense claims, and access budget reports.
Talking Points • Since 4 July 2022, Parliamentarians and their staff can complete office and
travel claims online and, depending on their role, access budget reports.
• This is a significant step in moving from a paper-based system for
parliamentary expenses to a ful y digital system.
• To assist with the rol out of new features, Finance has enhanced client
support, including a dedicated team to monitor system performance and
respond to issues.
– Support includes a dedicated help desk, face-to-screen training, digital
learning products, and targeted communications.
– Finance has deployed staff to Parliament House to provide customised
training and guidance.
• PEMS is available anywhere, at any time, on any device, and provides a more
efficient, integrated, and environmental y sustainable expense system
• My office is happy to work with any parliamentarians or their staffers who are
experiencing any issues with the system.
If asked if you are aware of any issues
• While al likely processing and business scenarios were simulated in the testing
of the system, the operation of the production system has identified
unforeseen issues that require remediation.
Contact: s 22
Cleared by: Dee Kaufline
Contact No: s 22
Contact No: (02) 6215 3640
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000083
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 13
PEMS
• Between 4 and 6 July 2022, a system issue resulted in nine payments that
should have gone to suppliers, to be incorrectly directed to eight current and
one former parliamentarian. The payments total ed $28,630.85.
• This error was discovered and corrected as a priority on 7 July 2022.
• Each affected Parliamentarian was contacted. Funds have been returned and
payments correctly reprocessed to the suppliers.
• System issues have delayed travel claim payments to some parliamentarians
and their staff.
• The fix required is a code change which is being worked on now.
• Finance is resolving issues as quickly as is practicable and quality assurance
protocols are being fol owed to avoid reoccurrence of the issues.
If asked whether parliamentarians can stil use paper
• Moving from a paper based system to claim parliamentary expenses to a digital
system is a significant change for many parliamentarians.
• Finance is working with the Independent Parliamentary Expenses Authority to
support users to use PEMS and gradual y move away from paper based
processing, to enhance efficiency and accountability.
If asked about the time to develop and implement
• While the development and build of PEMS proved to be more complex than
expected, users can now access a secure and intuitive expense management
and reporting system.
• Any feedback from users wil assist Finance to identify and implement future
improvements to further enhance the user experience.
Policy Commitments
N/A
Contact: s 22
Cleared by: Dee Kaufline
Contact No: s 22
Contact No: (02) 6215 3640
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000083
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 13
PEMS
Background
PEMS responds to recommendation 30 of the
Review into an Independent
Parliamentary Entitlements System to provide an effective and clear system to set
and monitor parliamentarians’ expenses.
The system has been progressively implemented since 2018.
2017-18 MYEFO allocated $38.1m over four years with costs partially offset by
operating savings from Finance and IPEA.
The ongoing PEMS operating budget is $4.04m per year.
As at 30 June 2022 expenditure on PEMS is $59.1m.
There are recommendations in the
Set the Standard: Report in the independent
Review into Commonwealth Parliamentary Workplaces that would require
additional enhancements to PEMS if adopted by the Government.
These enhancements include additional automation, budget management tools,
reporting functionality and improvements to the client interface. Scoping work is
underway to identify funding implications.
Contact: s 22
Cleared by: Dee Kaufline
Contact No: s 22
Contact No: (02) 6215 3640
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000083
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 14
REVIEW PBR ACT/IPEA ACT
REVIEW OF THE PARLIAMENTARY BUSINESS RESOURCES ACT AND
IPEA ACT Issue
What is the status of the independent review of the
Parliamentary
Business Resources Act 2017 and
Independent Parliamentary Expenses
Authority Act 2017?
Headline Response
The Government has tabled the Review report in the Parliament and
supports al its recommendations in principle. The Government is working
with relevant agencies on implementation.
Talking Points
• The Government has tabled the Review report in the Parliament and supports
al its recommendations in principle.
• The Review found that the legislative framework is broadly meeting its
objectives, but that there are areas for improvement, making
30 recommendations spanning:
–
reporting and certifications processes
–
service delivery and training
–
the administration of public resources, and
–
better supporting a diverse modern Parliament.
• The Government wil work with relevant entities on implementation, including
the Remuneration Tribunal, the Independent Parliamentary Expenses
Authority, Presiding Officers, and the Department of Finance.
• The Review report has been published on the Department of Finance’s website.
Policy Commitments
• N/A.
Contact: Lauren Barons
Cleared by: Lauren Barons
Contact No: (02) 6215 3403
Contact No: (02) 6215 3403
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 01/08/2022
PDR Number: QB22-000084
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 14
REVIEW PBR ACT/IPEA ACT
Background
The Review was required under the
Parliamentary Business Resources Act 2017
(PBR Act) and
Independent Parliamentary Expenses Authority Act 2017 (IPEA Act).
On 9 September 2021, the previous Government announced the Review would be
undertaken by the Hon Kel y O’Dwyer and the Hon Kate El is. In December 2021, the
previous Government was provided the final Review report.
The Review examined the operation of the PBR Act and IPEA Act, and whether they
are meeting the objective of improving the accountability and transparency of
parliamentary business resources.
The Terms of Reference for the Review covered:
– the impact of the Acts on parliamentarians and their staff, former
parliamentarians and administering entities, including the ability of the
framework to support parliamentarians’ parliamentary business
– whether the Acts have simplified the administration of resources and
enhanced accountability and transparency
– whether administering entities are working in a ‘joined up’ way to ensure
the consistent application of the framework
– the operation of IPEA and its statutory functions, and
– resources available for members representing large electorates.
As part of conducting the Review, Ms O’Dwyer and Ms El is:
– issued a discussion paper regarding the operation of the framework to
help inform discussions and engagement with the Review
– consulted with a range stakeholders including current and former
parliamentarians and their staff and administering agencies
– conducted a survey with current and former parliamentarians and their
staff, and a survey for administrating agencies, and
– sought submissions from the public.
Several of the recommendations interact with the
Set the Standard: Report on the
Independent Review into Commonwealth Parliamentary Workplaces.
Implementation of these recommendations wil be considered in the context of
other work relevant to Commonwealth Parliamentary Workplaces to ensure
overarching alignment.
Contact: Lauren Barons
Cleared by: Lauren Barons
Contact No: (02) 6215 3403
Contact No: (02) 6215 3403
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 01/08/2022
PDR Number: QB22-000084
Date Last Printed: 12/08/2022 2:11 PM
Page
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FOI 22-57 Document 15
FINANCIAL REPORTING
MONTHLY FINANCIAL STATEMENTS – YEAR TO DATE RESULTS
Issue
The May 2022 monthly financial statements (MFS) were released on
24 June 2022 (Attachment A).
Headline Response
The underlying cash balance deficit and the fiscal balance deficit for the
financial year to 31 May 2022 were lower (better) than expected.
Key facts and figures
May 2022 year to date
AGGREGATES
Revised Budget
Variance to
REVISED BUDGET
ACTUAL
ACTUAL
Profile Revised Budget
ESTIMATE*
2021-2022
2021-2022
2021-2022
Profile
2021-2022
YTD April
YTD May
YTD May
May
FULL YEAR
$b
$b
$b
$b
$b
Receipts(a)
463.7
525.7
509 5
16.2
556.6
Payments(b)
509.5
559.0
570 0
-11.0
636.4
Underlying cash balance
-45.9
-33.4
-60.5
27.1
-79.8
Headline cash balance
-46.4
-34.6
-63.7
29.1
-85.8
Revenue
476.2
542.2
525 9
16.3
566.4
Expenses
509.3
559.0
568 3
-9.3
639.6
Net operating balance
-33.1
-16.9
-42.4
25.6
-73.2
Net capital investment
3.8
5.5
8.1
-2.7
11.1
Fiscal balance
-36.9
-22.3
-50.6
28.2
-84.2
Total assets
770.9
791.8
757.6
Total liabilities
1,445.2
1,438.6
1,352.6
Net worth(c)
-674.2
-646.8
-595.0
Net debt(d)
541.0
516.8
631.5
*As published in the 2022-23 Budget.
(a) Cash receipts for operating activities and sales of non-financial assets.
(b) Cash payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net debt is the sum of interest bearing liabilities less the sum of selected financial assets (cash and deposits, advances paid, and investments, loans and
placements).
Comparators for May 2022 MFS are based on the 2021-22 Revised Budget
estimates published in the March 2022-23 Budget.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
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FOI 22-57 Document 15
FINANCIAL REPORTING
Talking Points
• The
underlying cash balance deficit for the year to 31 May 2022 was
$33.4 billion. This was $27.1 bil ion lower (better) than the Revised Budget
profile deficit of $60.5 bil ion.
– Total receipts were $16.2 bil ion higher (better), primarily driven by
higher taxes received ($13.7 bil ion).
– Total payments were $11.0 bil ion lower (better), primarily driven by
lower payments for goods and services ($6.1 bil ion) and purchases of
non-financial assets ($3.1 bil ion).
• The
net operating balance deficit for the year to 31 May 2022 was
$16.9 billion, which was $25.6 bil ion lower (better) than the Revised Budget
profile deficit of $42.4 bil ion.
• The
fiscal balance deficit for the year to 31 May 2022 was
$22.3 billion, which was $28.2 bil ion lower (better) than the Revised Budget
profile deficit of $50.6 bil ion.
Policy Commitments – N/A
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
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FOI 22-57 Document 15
FINANCIAL REPORTING
Attachment A
SENATOR THE HON KATY GALLAGHER
Minister for Finance
Senator for the Australian Capital Territory
Friday, 24 June 2022
MEDIA RELEASE
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR
MONTHLY FINANCIAL STATEMENTS
May 2022
KEY POINTS
• The Monthly Financial Statements for May 2022 report the budget position against the
expected monthly profile for the 2021-22 financial year through to 31 May 2022, based on the
2021-22 Revised Budget estimates published in the 2022-23 Budget in March 2022.
• The underlying cash balance for the 2021-22 financial year to 31 May 2022 was a deficit of
$33.4 billion against the Revised Budget profile deficit of $60.5 billion.
• The fiscal balance for the 2021-22 financial year to 31 May 2022 was a deficit of $22.3 billion
against the Revised Budget profile deficit of $50.6 billion.
AGGREGATES
Revised Budget REVISED BUDGET
ACTUAL
ACTUAL
Profile
ESTIMATE*
2021-2022
2021-2022
2021-2022
2021-2022
May
YTD May
YTD May
FULL YEAR
$b
$b
$b
$b
Receipts(a)
62.0
525.7
509.5
556.6
Payments(b)
49.5
559.0
570.0
636.4
Underlying cash balance
12.5
-33.4
-60.5
-79.8
Headline cash balance
11.8
-34.6
-63.7
-85.8
Revenue
66.0
542.2
525.9
566.4
Expenses
49.7
559.0
568.3
639.6
Net operating balance
16.2
-16.9
-42.4
-73.2
Net capital investment
1.7
5.5
8.1
11.1
Fiscal balance
14.6
-22.3
-50.6
-84.2
Total assets
791.8
757.6
Total liabilities
1,438.6
1,352.6
Net worth(c)
-646.8
-595.0
Net debt(d)
516.8
631.5
*As published in the 2022-23 Budget.
(a) Cash receipts for operating activities and sales of non-financial assets.
(b) Cash payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net debt is the sum of interest bearing liabilities less the sum of selected financial assets (cash and deposits, advances paid, and
investments, loans and placements).
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
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FOI 22-57 Document 15
FINANCIAL REPORTING
Monthly results are generally volatile due to timing differences between revenue and receipts, and
expenses and payments. Care needs to be taken when comparing monthly or cumulative data
across years and to full-year estimates, as revenue and receipts and expenses and payments vary
from month to month.
FISCAL OUTCOMES
Underlying Cash Balance
The underlying cash balance for the financial year to 31 May 2022 was a deficit of $33.4 billion,
which is $27.1 billion lower than the 2021-22 Revised Budget profile deficit of $60.5 billion.
•
Receipts
Total receipts were $16.2 billion higher than the 2021-22 Revised Budget profile.
•
Payments
Total payments were $11.0 billion lower than the 2021-22 Revised Budget profile.
Net Operating Balance
The net operating balance for the financial year to 31 May 2022 was a deficit of $16.9 billion,
which is $25.6 billion lower than the 2021-22 Revised Budget profile deficit of $42.4 billion. The
difference results from higher than expected revenue and lower than expected expenses.
Fiscal Balance
The fiscal balance for the financial year to 31 May 2022 was a deficit of $22.3 billion, which is
$28.2 billion lower than the 2021-22 Revised Budget profile deficit of $50.6 billion. The
difference results from higher than expected revenue and lower than expected expenses and net
capital investment.
Assets and Liabilities
As at 31 May 2022:
• net worth is negative $646.8 billion;
• net debt is $516.8 billion; and
• net financial liabilities are $898.4 billion.
Senator the Hon. Katy Gallagher
Rosemary Huxtable PSM
Minister for Finance
Secretary
Senator for the Australian Capital Territory
Department of Finance
Media Contact
Patrick Cronan
0432 758 224
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
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FOI 22-57 Document 15
FINANCIAL REPORTING
Australian Government general government sector operating statement
Revised Budget REVISED BUDGET
ACTUAL
ACTUAL
Profile
ESTIMATE*
2021-2022
2021-2022
2021-2022
2021-2022
May
YTD May
YTD May
FULL YEAR
Note
$m
$m
$m
$m
Revenue
Taxation revenue(a)
1,2
63,309
501,667
487,888
525,380
Sales of goods and services
743
17,113
16,841
17,628
Interest income
245
3,529
3,595
3,916
Dividend and distribution income
407
7,509
6,161
6,219
Other(a)
1,261
12,347
11,417
13,273
Total revenue
65,965
542,164
525,903
566,417
Expenses
Gross operating expenses
Wages and salaries(b)
2,064
20,853
21,183
23,572
Superannuation
1,046
11,229
11,340
12,285
Depreciation and amortisation
984
10,230
10,814
11,745
Supply of goods and services
14,577
143,355
149,163
167,523
Other operating expenses(b)
680
7,340
7,330
8,168
Total gross operating expenses
19,351
193,006
199,830
223,293
Superannuation interest expense
748
8,226
8,228
8,976
Interest expenses
1,725
17,429
17,573
20,638
Current transfers
Current grants
13,045
169,280
170,451
189,064
Subsidy expenses
1,157
15,683
15,972
18,017
Personal benefits
11,914
144,598
145,143
156,348
Total current transfers
26,117
329,562
331,566
363,429
Capital transfers
Mutually agreed w rite-dow ns
341
2,403
2,376
2,768
Other capital grants
1,450
8,394
8,748
20,465
Total capital transfers
1,791
10,797
11,124
23,234
Total expenses
3
49,731
559,020
568,320
639,569
Net operating balance
16,234
-16,856
-42,417
-73,153
Other economic flows
- included in operating result
Net w rite-dow ns of assets
-916
-6,950
-7,030
-7,051
Assets recognised for the first time
57
226
192
242
Actuarial revaluations
0
0
0
-15
Net foreign exchange gains
-37
61
0
-602
Net sw ap interest received
34
-294
-427
-427
Market valuation of debt
10,883
103,250
48,297
48,066
Other gains/(losses)
-660
-3,196
4,297
5,751
Total other economic flows
9,360
93,096
45,330
45,964
- included in operating result
Operating Result(c)
25,594
76,239
2,913
-27,189
Non-owner movements in equity
Revalua ion of equity investments
-2
32
33
-8,494
Actuarial revaluations
0
0
0
-880
O her economic revaluations
1,833
2,136
324
1,061
Total other economic flows - included in equity
1,831
2,168
358
-8,312
Comprehensive result
- Total change in net worth
27,425
78,407
3,270
-35,502
Net operating balance
16,234
-16,856
-42,417
-73,153
Net acquisition of non-financial assets
Purchases of non-financial assets
2,505
15,539
19,034
23,025
less Sales of non-financial assets
59
1,256
1,108
1,149
less Depreciation
984
10,230
10,814
11,745
plus Change in inventories
213
1,428
1,051
988
plus Other movements in non-financial assets
-1
-17
-25
-27
Total net acquisition of non-financial assets
1,675
5,463
8,138
11,092
Fiscal balance (Net lending/borrowing)(d)
14,559
-22,319
-50,555
-84,245
*As published in the 2022-23 Budget.
(a) In the 2022-23 Budget, following a determination issued by the Australian Bureau of Statistics (ABS), the industry contribution levy collected by the Australian
Transaction Reports and Analysis Centre has been reclassified from non-taxation revenue to taxation revenue to reflect the change in the nature of this revenue.
(b) Consistent with the ABS Government Finance Statistics (GFS) classification, other employee related expenses are classified separately from wages and
salaries under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(c) Operating result under Australian Accounting Standards.
(d) The term fiscal balance is not used by the ABS.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
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9
FOI 22-57 Document 15
FINANCIAL REPORTING
Australian Government general government sector balance sheet
REVISED BUDGET
ACTUAL
ESTIMATE*
as at
as at
31 May 2022
30 June 2022
$m
$m
Assets
Financial assets
Cash and deposits
87,320
62,206
Advances paid
80,609
81,915
Investments, loans and placements
216,355
203,633
Other receivables
77,703
65,948
Equity investments
Investments in other public sector entities
63,994
56,373
Equity accounted investments
3,822
4,034
Investments - shares
74,321
91,886
Total financial assets
604,124
565,993
Non-financial assets
Land
12,128
12,327
Buildings
43,537
45,800
Plant, equipment and infrastructure
96,971
99,155
Inventories
11,633
11,196
Intangibles
11,027
10,706
Investment properties
206
214
Biological assets
13
21
Heritage and cultural assets
11,842
11,873
Assets held for sale
252
286
Other non-financial assets
23
13
Total non-financial assets
187,632
191,590
Total assets
791,756
757,583
Liabilities
Interest bearing liabilities
Deposits held
591
598
Government securities
853,865
929,091
Loans
27,649
29,640
Lease liabilities
18,965
19,901
Total interest bearing liabilities
901,070
979,230
Provisions and payables
Superannuation liability(a)
415,356
251,251
Other employee liabilities
38,134
38,518
Suppliers payables
11,200
12,113
Personal benefits payables
3,434
2,950
Subsidies payables
913
985
Grants payables
2,711
3,648
Other payables
6,849
2,629
Provisions
58,886
61,263
Total provisions and payables
537,482
373,358
Total liabilities
1,438,552
1,352,588
Net worth(b)
-646,796
-595,005
Net financial worth(c)
-834,428
-786,594
Net financial liabilities(d)
898,422
842,967
Net debt(e)
516,786
631,477
*As published in he 2022-23 Budget.
(a) For budget reporting purposes, a discount rate of 5 per cent determined by actuaries in preparing the 2020 Long Term Cost Reports
is used to value the superannuation liability. This reflects the average annual rate estimated to apply over the term of the liability and it
reduces the volatility in reported liabilities that would occur from year to year if the spot rates on long-term government bonds were used.
Consistent with Australian Accounting Standards, the superannua ion liability for the 2021-22 Monthly Financial Statements was
calculated using he spot rates on long-term government bonds as at 30 June 2021 that best matched each individual scheme’s liability
duration. These rates were between 1.6 and 2.3 per cent per annum.
(b) Net worth equals total assets minus total liabilities.
(c) Net financial worth equals total financial assets minus total liabilities.
(d) Net financial liabilities equals total liabilities less financial assets other than investments in o her public sector entities.
(e) Net debt is he sum of interest bearing liabilities less the sum of selected financial assets (cash and deposits, advances paid, and
investments, loans and placements).
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
6 of
9
FOI 22-57 Document 15
FINANCIAL REPORTING
Australian Government general government sector cash flow statement(a)
Revised Budget REVISED BUDGET
ACTUAL
ACTUAL
Profile
ESTIMATE*
2021-2022
2021-2022
2021-2022
2021-2022
May
YTD May
YTD May
FULL YEAR
$m
$m
$m
$m
Cash receipts from operating activities
Taxes received(b)
58,975
482,613
468,898
512,480
Receipts from sales of goods and services
1,418
16,931
16,598
17,626
Interest receipts
205
2,277
2,346
2,557
Dividends, distr butions and income tax equivalents
324
10,261
9,027
9,142
Other receipts(b)(c)
1,078
13,087
12,190
14,334
Total operating receipts
62,000
525,169
509,059
556,139
Cash payments for operating activities
Payments for employees(c)(d)
-2,963
-33,474
-33,729
-37,212
Payments for goods and services
-13,931
-143,029
-149,170
-164,372
Grants and subsidies paid
-15,929
-197,869
-199,229
-230,162
Interest paid
-2,993
-16,563
-16,411
-17,456
Personal benefit payments
-11,802
-144,912
-145,338
-157,130
Other payments(d)
-525
-6,924
-6,694
-7,496
Total operating payments
-48,143
-542,769
-550,570
-613,828
Net cash flows from operating activities
13,857
-17,600
-41,512
-57,689
Cash flows from investments in
non-financial assets
Sales of non-financial assets
15
505
438
487
Purchases of non-financial assets
-1,298
-14,087
-17,215
-20,159
Net cash flows from investments in
non-financial assets
-1,283
-13,582
-16,778
-19,672
Net cash flows from investments in
financial assets for policy purposes
-726
-1,228
-3,143
-5,949
Net cash flows from investments in
financial assets for liquidity purposes
279
-8,315
-5,727
-3,200
Cash flows from financing activities
Borrow ing (net)
2,746
72,319
79,727
93,589
Other financing (net)
-837
-6,686
-6,866
-7,284
Net cash flows from financing activities
1,909
65,633
72,861
86,305
Net increase/(decrease) in cash held
14,035
24,909
5,702
-206
GFS cash surplus(+)/deficit(-)(e)
12,574
-31,182
-58,289
-77,361
plus Net cash flow s from financing activities
for leases(f)
-62
-2,185
-2,220
-2,460
Equals underlying cash balance(g)
12,511
-33,366
-60,509
-79,821
plus Net cash flow s from investments in
financial assets for policy purposes
-726
-1,228
-3,143
-5,949
Equals headline cash balance
11,785
-34,594
-63,652
-85,770
*As published in the 2022-23 Budget.
(a) A positive number denotes a cash inflow; a nega ive number denotes a cash outflow.
(b) In he 2022-23 Budget, following a determination issued by the ABS, the industry contribution levy collected by the Australian Transaction
Reports and Analysis Centre has been reclassified from non-taxation receipts to taxa ion receipts to reflect the change in the nature of these
receipts.
(c) As a result of a voluntary accounting policy change, the pass-through of defined benefit member superannuation receipts and payments
are reported on a gross basis in the cash flow statement. This was previously reported on a net basis.
(d) Consistent with the ABS GFS classification, other employee related payments are classified separately from wages and salaries under
other payments.
(e) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(f) Principal payments on lease liabilities, which are financing cash payments, are deducted in the calculation of the underlying cash balance
to maintain consistency of measure following the implementation of AASB 16.
(g) The term underlying cash balance is not used by the ABS.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
7 of
9
FOI 22-57 Document 15
FINANCIAL REPORTING
Note 1: Income Tax
Revised Budget REVISED BUDGET
ACTUAL
ACTUAL
Profile
ESTIMATE*
2021-2022
2021-2022
2021-2022
2021-2022
May
YTD May
YTD May
FULL YEAR
$m
$m
$m
$m
Individuals and other w ithholding taxes
Gross income tax w ithholding
23,596
221,177
219,457
238,500
Gross other individuals
11,542
56,594
55,282
57,500
less Refunds
2,049
36,392
36,579
38,200
Total individuals and other w ithholding taxation
33,089
241,380
238,160
257,800
Fringe benefits tax
215
3,218
3,188
3,180
Company tax
14,695
112,240
103,737
111,500
Superannuation fund taxes
1,198
24,957
23,950
24,580
Petroleum resource rent tax
74
1,788
1,758
1,720
Total income taxation revenue
49,272
383,583
370,794
398,780
*As published in he 2022-23 Budget.
Note 2: Indirect Tax
Revised Budget REVISED BUDGET
ACTUAL
ACTUAL
Profile
ESTIMATE*
2021-2022
2021-2022
2021-2022
2021-2022
May
YTD May
YTD May
FULL YEAR
$m
$m
$m
$m
Goods and services tax
10,042
71,967
71,120
76,409
Wine equalisation tax
103
1,035
1,062
1,160
Luxury car tax
83
843
805
880
Excise duty
1,405
21,223
21,141
22,370
Customs duty
1,441
15,618
15,450
16,980
Other indirect tax(a)
963
7,399
7,516
8,801
Total indirect taxation revenue
14,037
118,084
117,094
126,600
*As published in he 2022-23 Budget.
(a) In the 2022-23 Budget, following a determination issued by the ABS, the industry contribution levy collected by the Australian
Transac ion Reports and Analysis Centre has been reclassified from non-taxa ion revenue to taxa ion revenue to reflect the change in the
nature of his revenue.
Note 3: Total expenses by function
REVISED BUDGET
ACTUAL
ACTUAL
ESTIMATE*
2021-2022
2021-2022
2021-2022
May
YTD May
FULL YEAR
$m
$m
$m
Expenses by function
General public services
2,874
27,298
33,121
Defence
4,015
33,362
35,882
Public order and safety
503
6,030
6,713
Education
2,247
40,257
43,357
Health
8,711
97,405
111,467
Social security and w elfare
17,601
204,213
227,800
Housing and community amenities
563
5,631
8,431
Recreation and culture
395
3,814
4,716
Fuel and energy
369
7,326
8,444
Agriculture, forestry and fishing
333
2,746
4,119
Mining, manufacturing and construction
309
3,190
4,310
Transport and communication
1,210
6,864
16,070
Other economic affairs
1,222
19,825
23,631
Other purposes
Public debt interest
1,669
16,834
18,462
Nominal superannuation interest
748
8,226
8,976
General purpose inter-government transactions
6,721
73,767
80,934
Natural disaster relief
240
2,231
5,176
Contingency reserve
0
0
-2,040
Total expenses
49,731
559,020
639,569
*As published in the 2022-23 Budget.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
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FOI 22-57 Document 15
FINANCIAL REPORTING
NOTES:
AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049)
The Australian Government monthly financial statements have been prepared on a basis consistent with the
Budget as required under section 47 of the
Public Governance, Performance and Accountability Act 2013.
The statements are prepared in accordance with AASB 1049, which require treatment based on the Australian
Bureau of Statistics’ (ABS) Government Finance Statistics (GFS) except where Australian Accounting
Standards (AAS) provide a better conceptual treatment for specific items. Departures are limited to
complying with either ABS GFS or AAS.
Taxation revenue
While total tax collections are known with certainty at the end of each month, the distribution across the
relevant heads of revenue cannot be finalised until all business activity statements are received and processed.
The outcomes for some revenue items provided in this statement are therefore estimates, in accordance with
the best judgement of the Commissioner of Taxation, and subject to revision. The taxation revenue items not
affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.
Style conventions
Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and
sums of components are due to rounding.
International Monetary Fund Special Data Dissemination Standards
The Government is committed to releasing the monthly financial statements in a timely fashion and will
endeavour to do so in accordance with International Monetary Fund (IMF) Special Data Dissemination
Standards (SDDS). Under these standards the timeframe for releasing the monthly financial statements is by
the end of the following month. Australia applies a special flexibility option which allows it to publish late
the last and first month of a financial year.
In accordance with the IMF SDDS, the approximate date of release of the data on debt guaranteed by the
Australian Government (central government), is given on the IMF’s Data Dissemination Advance Release
Calendar http://dsbb.imf.org. Monthly and quarterly data on debt guaranteed by the Australian Government
(central government) that meet the coverage and timeliness requirements of the SDDS are published on the
Australian Office of Financial Management website at https://www.aofm.gov.au/data-hub.
Electronic access to monthly financial statements
The Australian Government general government sector monthly financial statements and the historical series
are available in electronic format at:
http://data.gov.au/dataset/australian-government-general-government-sector-monthly-financial-statements-
tables-and-data.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management
Date Updated: 4/07/2022
PDR Number: QB22-000085
Date Last Printed: 12/08/2022 2:12 PM
Page
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9
FOI 22-57 Document 16
FUTURE FUND ESG
FUTURE FUND ESG ISSUES Issue
How does the Future Fund Board of Guardians ensure that
environmental, social and governance (ESG) issues are appropriately
considered when investing public funds?
Headline Response
The Future Fund Board of Guardians invests independently from the
Government, through external investment managers, and has a
wel -established ESG policy that is integrated into its investment process.
Talking Points
• The Future Fund Board of Guardians invests independently from the
Government, through external investment managers. This independence is a
deliberate feature that has enjoyed bipartisan support for more than 15 years.
• The
Future Fund Act 2006 requires the Board to maximise returns over the long
term, consistent with best practice for institutional investment. In order to
achieve a broadly diversified portfolio, the Board, through its investment
managers, has exposure to thousands of businesses globally.
• The Board’s long-term investment strategy is consistent with its obligations
under the
Future Fund Act 2006, its investment mandate and Australian law
and sanctions. The Board excludes a limited number of investments based on
the international conventions and treaties ratified by Australia.
• The Board has implemented al relevant sanctions imposed by Australia, the
United States and the European Union on Russia.
• The Board’s ESG policy provides a framework for the consideration of
exclusions from the portfolio and the integration of ESG factors into the
investment process. The Board has also excluded entities involved in the
manufacture of complete tobacco products.
Policy Commitments – N/A
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 12/07/2022
PDR Number: QB22-000088
Date Last Printed: 12/08/2022 2:12 PM
Page
1 of
3
FOI 22-57 Document 16
FUTURE FUND ESG
Background
Future Fund’s General Investment Philosophy
The Board has built a broadly diversified portfolio, which includes passive,
index-based investments in thousands of entities global y. The Board’s limited
exclusions keep the investment universe large, which helps to satisfy its legislated
objective to maximise returns over the long term.
The Board integrates ESG into its decision-making process by assessing the potential
impacts of ESG matters on the risk and return of the portfolio. The Board also
exercises its ownership rights associated with investments according to the Board’s
ESG policy, which considers human and labour rights, climate change, sustainable
supply chain, corruption and bribery.
Investment Exclusions
Since 2009, the Board has restricted al managers of directly held investments from
investing in securities issued by companies that are involved in activities that are
limited by the 2008 Convention on Cluster Munitions or the 1997 Anti-Personnel
Mines Convention.
The Board also has investment exclusions against companies that do not operate
within the framework of the Nuclear Non-Proliferation Treaty (NPT), which Australia
signed in February 1970. Australia has not signed the Treaty on the Prohibition of
Nuclear Weapons, so it is not a treaty that the Board has regard to under its ESG
policy.
In February 2013, the Board restricted investment in entities directly involved in the
manufacture of complete tobacco products. The Board’s policy is founded on the
view that there is no safe level of usage.
The Board has due diligence processes in place to ensure it does not make
investments that breach Australian sanctions and wil continue to abide by any new
sanctions introduced by the Government.
Investments in companies in Russia
The Board has devoted significant resources to compliance and wil continue to do
so as any new sanctions are announced.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 12/07/2022
PDR Number: QB22-000088
Date Last Printed: 12/08/2022 2:12 PM
Page
2 of
3
FOI 22-57 Document 16
FUTURE FUND ESG
The Future Fund has modest (April 2022 - 0.1% of the fund) holdings in companies
listed on the Russian stock exchange. It does not have any holdings in Russian
sovereign debt or other fixed income.
Sanctions on Russia and the closure of the Moscow stock exchange to foreigners
have hampered every foreign investor’s efforts to sell.
The Board has devoted significant resources to compliance and wil continue to do
so if any new sanctions are announced. The Board wil be winding down its Russian
exposure as market conditions permit.
Contact: s 22
Cleared by: Nathan Wil iamson
Contact No: s 22
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 12/07/2022
PDR Number: QB22-000088
Date Last Printed: 12/08/2022 2:12 PM
Page
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3
FOI 22-57 Document 17
GRANTS
ANAO REPORT ON THE BUILDING BETTER REGIONS FUND Issue
Wil the Government ensure its administration of grant programs meets
the
Commonwealth Grants Rules and Guidelines?
Headline Response
The Government is committed to increasing the transparency of the
Government decision-making in relation to grants and to achieving
quality outcomes for the Australian community.
Talking Points
• In accordance with the Government’s commitment to strengthen integrity,
accountability and transparency in grants decision-making, the Department of
Finance (Finance) is preparing advice on options to enhance the
Commonwealth Grants Policy Framework and the
Commonwealth Grants Rules
and Guidelines, including opportunities to improve the public reporting of
grants awarded.
• The four recommendations of the Auditor-General to amend the
Commonwealth Grants Rules and Guidelines wil be considered as part of this
work.
If asked about the Building Better Regions Fund
•
The administration and decisions of the Building Better Regions Fund are those
of the previous Government.
− In the most recent round, the grants were assessed by the then
Department of Infrastructure, Transport, Regional Development and
Communications with the final decision to award grants and the amount
of grant funding made by a ministerial panel in consultation with Cabinet
under the previous Government.
•
The Auditor-General’s audit report on the
Award of Funding under the Building
Better Regions Fund has been tabled with five recommendations, four of which
are to change the
Commonwealth Grants Rules and Guidelines.
Contact: Lasantha Samaranayake
Cleared by: Lasantha Samaranayake
Contact No: (02) 6215 2629
Contact No: (02) 6215 2668
Division: Productivity Business and Improvement
Cleared by Adviser:
Date Updated: 1/08/2022
PDR Number: QB22-000090
Date Last Printed: 12/08/2022 2:12 PM
Page
1 of
4
FOI 22-57 Document 17
GRANTS
•
Finance provides support to agencies to help them understand the
Commonwealth Grants Rules and Guidelines but it is the responsibility of
accountable authorities and approving ministers to ensure the relevant
requirements of the
Commonwealth Grants Rules and Guidelines are met.
•
There are no criticisms of Finance in the audit report.
•
Finance is considering the audit recommendations and wil provide advice to
Government on broader opportunities to improve and strengthen the
Commonwealth Grants Rules and Guidelines, particularly noting it has been
almost five years since they were last updated.
Policy Commitments
• The Government promised an Audit on waste, rorts and mismanagement to
find savings to return to the Budget. The audit is underway and wil include
grants programs.
• The Government has also promised it wil restore the Australian people’s trust
in their government by establishing a powerful, transparent and independent
National Anti-Corruption Commission. And that work is underway also.
Contact: Lasantha Samaranayake
Cleared by: Lasantha Samaranayake
Contact No: (02) 6215 2629
Contact No: (02) 6215 2668
Division: Productivity Business and Improvement
Cleared by Adviser:
Date Updated: 1/08/2022
PDR Number: QB22-000090
Date Last Printed: 12/08/2022 2:12 PM
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FOI 22-57 Document 17
GRANTS
Background
The
Commonwealth Grants Rules and Guidelines (CGRGs) are a legislative
instrument issued by the Finance Minister under subsection 105C of the
Public
Governance, Performance and Accountability Act 2013 (PGPA Act). The application
of the PGPA Act and the CGRGs depends upon the details of a particular program.
The CGRGs are largely principles based with some mandatory requirements and
guidance to encourage better practice grants administration. The CGRGs are often
complimented, with criticism general y directed at the application of the CGRGs by
entities.
The CGRGs were first established in 2009 (previously cal ed the
Commonwealth
Grant Guidelines) by the then Finance Minister, the Hon Lindsay Tanner, to improve
the transparency and accountability of grants administration. They were updated in:
2013 by the then Labor Government to introduce minimum briefing requirements
where a minister is an approver; 2014 to address the introduction of the PGPA Act
(change in title); and 2017 to mandate the use of GrantConnect.
Building Better Regions Fund (BBRF)
The BBRF is subject to the CGRGs.
The ANAO undertook an audit assessing whether the award of funding under each
round of the BBRF was effective and consistent with the CGRGs and has tabled its
report. The Auditor-General found the award of BBRF funding was partly effective
and partly consistent with the CGRGs.
Media reports have focussed on the disproportion of grants funding provided to
Coalition-held and marginal electorates, as well as the extent of the panel’s use of
‘other’ factors and discretion to override the results of the merit assessment
process.
Finance reviewed the BBRF grant opportunity guidelines (Infrastructure Projects and
Community Investments grants) under the different rounds for consistency with the
CGRGs, with the exception of Round 4. There have been six rounds under the BBRF.
The grant guidelines have used the whole of government templates and were either
approved for release by the then Finance Minister or then Deputy Prime Minister,
depending on the agreed risk rating. Applications closed under BBRF round 6 in
February 2022, but no grants have been awarded.
Contact: Lasantha Samaranayake
Cleared by: Lasantha Samaranayake
Contact No: (02) 6215 2629
Contact No: (02) 6215 2668
Division: Productivity Business and Improvement
Cleared by Adviser:
Date Updated: 1/08/2022
PDR Number: QB22-000090
Date Last Printed: 12/08/2022 2:12 PM
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FOI 22-57 Document 17
GRANTS
The ANAO noted Finance had queried the use of ‘other factors’ and had suggested
the members on the ministerial panel be named in the guidelines, but no changes
were made.
The Hon Catherine King MP, Minister for Infrastructure, Transport, Regional
Development and Local Government, is reported as stating on
ABC Melbourne that
she wil need to have a look at the BBRF Round 6 to consider whether to proceed
with it “because, frankly, I think this whole scheme has just been contaminated now
when you look at this report.”
Correspondence and ministerial reports made by the responsible minister and chair
of the BBRF ministerial panel under paragraph 4.12 of the CGRGs has been tabled in
Parliament in accordance with Senate Order 23E. Finance has released documents in
accordance with the
Freedom of Information Act 1988, on 21 December 2021 (FOI
21/75) and on 31 January 2022 (FOI 21/84).
Contact: Lasantha Samaranayake
Cleared by: Lasantha Samaranayake
Contact No: (02) 6215 2629
Contact No: (02) 6215 2668
Division: Productivity Business and Improvement
Cleared by Adviser:
Date Updated: 1/08/2022
PDR Number: QB22-000090
Date Last Printed: 12/08/2022 2:12 PM
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FOI 22-57 Document 18
INLAND RAIL
AUSTRALIAN RAIL TRACK CORPORATION (ARTC) INLAND RAIL
Issue
The Government’s review of the Inland Rail project
Headline Response
The Government is investing and supporting the construction of
productivity enhancing infrastructure, which is why we are reviewing the
Inland Rail project to get it back on track. The review wil address cost and
schedule pressures and uncertainty regarding the route which has caused
community concerns.
Talking Points
• The Government wil conduct a review of the Inland Rail project. The details of
the review are stil being finalised, however cost, schedule, funding
arrangements and stakeholder engagement wil be key considerations.
• The Inland Rail project is experiencing cost and schedule pressures, including:
– increasing escalation rates and increased design and constructions costs
due to technical complexities and volatile economic and market
conditions; and
– delays to approval processes that have pushed back construction
schedules.
• The review wil get to the bottom of the issues that the project faces and
determine realistic cost and schedule forecasts to complete the project.
• While the review is underway, ARTC wil continue to get on with the job, it is
continuing to deliver Inland Rail across the route alignment:
– In New South Wales, the Parkes to Narromine section is completed
(104 kilometres of track).
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000091
Date Last Printed: 12/08/2022 2:12 PM
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FOI 22-57 Document 18
INLAND RAIL
– A key section of the Narrabri to North Star project was completed in
November 2021, seeing 29 kilometres of track becoming operational
ahead of the first grain trains for the season.
– In Queensland, ARTC is reviewing submissions received fol owing public
exhibition of the draft Environmental Impact Statements for Helidon to
Calvert, Calvert to Kagaru, and Border to Gowrie sections of Inland Rail.
– The Public-Private Partnership preferred proponent has been selected to
deliver the Gowrie to Kagaru section of Inland Rail. This proponent is
Regionerate Rail, a consortium comprising of Clough, GS Engineering and
Construction, Webuild (formerly Salini Impregilio), Service Stream, and
Plenary Group. Detailed design discussions have been initiated with the
consortium and are ongoing.
– In Victoria, ARTC is progressing the primary environmental approvals for
the Beveridge to Albury section.
Policy Commitments
• During the 2022 election, the Government pledged to get the Inland Rail
project back on track, closely guided by the Senate Rural and Regional Affairs
and Transport References Committee Inquiry on Inland Rail –
Inland Rail:
Derailed from the start (Senate Committee Report).
• The Government is committed to listening to farmers and communities
concerned by the project's potential impacts and continuing the business case
into extending the project to the Port of Gladstone.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000091
Date Last Printed: 12/08/2022 2:12 PM
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FOI 22-57 Document 18
INLAND RAIL
Background
Inland Rail is a new 1,700 km freight rail connection that wil enable goods to be
delivered between Melbourne and Brisbane in under 24 hours, with reliability
matching current road levels and at competitive cost. The project wil also link
southeast Queensland with Adelaide and Perth by rail.
Inland Rail wil avoid the congested Sydney network, travel ing via regional Victoria,
New South Wales and Queensland. Inland Rail includes constructing 600 kilometres
of new track and upgrading 1,100 kilometres of existing track.
Previous independent model ing by PwC indicates that Inland Rail wil support more
than 21,500 direct and indirect jobs at the peak of construction, 5,500 more than
original y envisaged, and wil boost the national economy by more than $18.0 bil ion
during construction and over the first 50 years of operation.
The previous Government had committed $14.5 bil ion in equity to enable the
Australian Rail Track Corporation (ARTC) to deliver Inland Rail. The most recent cost
and schedule reset took place in the 2020-21 Budget resulting in an additional
$5.5 bil ion investment.
Senate Inquiry into the Management of Inland Rail
The Committee Report made 26 recommendations broadly focussing on:
• further Committee oversight to ARTC’s delivery;
• reconsideration of the business case supporting the Commonwealth’s
investment;
• investigation into terminal infrastructure and connections to Gladstone and
Port of Brisbane;
• enhanced engagement with industry and affected communities; and
• consideration of alternative alignments at Narrabri.
The previous Government tabled its response to the Senate Inquiry on
16 December 2021, supporting 15 of the 26 recommendations made in the
Committee’s report, and noting five.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000091
Date Last Printed: 12/08/2022 2:12 PM
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FOI 22-57 Document 18
INLAND RAIL
Flooding in South Australia, Queensland and New South Wales
In January and March 2022, there were significant flooding events in
South Australia, Queensland and New South Wales that caused damage to ARTC’s
rail assets. Subsequently, several routes have faced landslides and washaways,
requiring repair of the track. Rail traffic along the Hunter Val ey network and
Interstate network in New South Wales were affected in the recent flooding in
July 2022. ARTC has advised al lines are now operational.
Repairs are ongoing on the Moss Vale line in New South Wales, further delayed by
recent flooding in July 2022. Customers and the community should be reassured
that repair of damaged lines is a priority.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial and Government Services
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000091
Date Last Printed: 12/08/2022 2:12 PM
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FOI 22-57 Document 19
LAND ACQUISITION
LAND ACQUISITION MATTERS Issue
The Department of Finance administers the
Lands Acquisition Act 1989
and is currently progressing matters to assist responsible entities.
Headline Response
A smal number of compulsory land acquisition compensation matters are
currently in progress. These relate to completed acquisitions of: an
easement for Western Sydney Airport; land for the expansion of
Melbourne Airport; and the Defence training areas in Cultana, South
Australia.
Talking Points
Compensation to Affected Landowners
• The Department of Finance is managing the compensation arrangements for
completed land acquisition processes involving:
– A Western Sydney Airport creek easement;
– Melbourne Airport land; and
– The Defence Cultana expansion area.
• These compensation processes are at various stages of consideration, and I am
unable to comment further on compensation matters due to confidentiality.
• Questions on the acquisitions themselves should be raised with the responsible
Ministers – the Minister for Infrastructure and Minister for Defence.
• Wherever possible, the Commonwealth acquires interests in land by
agreement. The
Lands Acquisition Act 1989 provides an entitlement to
compensation on ‘just terms’ for any landowner or other party with an interest
in the acquired land.
Contact: Matthew Whitfort
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3373
Contact No: (02) 6215 3853
Division: Property and Construction
Cleared by Adviser:
Date Updated: 06/07/2022
PDR Number: QB22-000092
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 19
LAND ACQUISITION
Review of the
Lands Acquisition Act 1989 • Finance conducted a public review of the LAA during 2020 and 2021 to look at
how it could be improved to best support the Commonwealth and other
interest holders into the future.
• The Review’s recommendations wil strengthen the existing lands acquisition
framework, providing better support and greater clarity and certainty to
landholders and Commonwealth acquiring entities.
• Implementation of the recommendations is in progress.
Policy Commitments
• N/A
Contact: Matthew Whitfort
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3373
Contact No: (02) 6215 3853
Division: Property and Construction
Cleared by Adviser:
Date Updated: 06/07/2022
PDR Number: QB22-000092
Date Last Printed: 12/08/2022 2:13 PM
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FOI 22-57 Document 20
MOG IMPLEMENTATION
MACHINERY OF GOVERNMENT CHANGES IMPLEMENTATION
Issue
What does the Administrative Arrangements Order (AAO), which
commenced on 1 July 2022, achieve?
Headline Response
The AAO and associated machinery of government changes wil help
deliver better government for al Australians.
Talking Points
• The AAO and associated machinery of government changes, which commenced
on 1 July 2022, align the public sector departmental and administrative
arrangements to the Government’s key priorities and wil help to deliver better
government for al Australians.
• The changes include:
• the creation of two new departments, increasing the total number of
departments from 14 to 16;
• the renaming of five departments;
• 30 entities moving between portfolios;
• the movement of 90 programs between entities; and
• the movement of around 26,000 staff across portfolios.
• Specifical y, the changes reflecting the Government’s priorities include:
• A new Department of Employment and Workplace Relations to implement
and administer the Government’s workplace relations, jobs, skil s and training
agenda; and
• A new Department of Climate Change, Energy, the Environment and Water to
deliver the Government’s job-creating climate change and energy agenda and
give Australia’s environment the protection it deserves.
Contact: Calan McKay
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2824
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management Division
Date Updated: 19/07/2022
PDR Number: QB22-000093
Date Last Printed: 12/08/2022 2:13 PM
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FOI 22-57 Document 20
MOG IMPLEMENTATION
• It is the Government’s expectation that machinery of government changes are
implemented by the public sector as efficiently as possible. Al milestones
required to achieve 1 July commencement were met and the public sector is wel
placed to implement al operational aspects of the changes within the coming
months.
• The impact of the changes wil be fully reflected in the Budget Papers that are
tabled on Budget night, 25 October 2022.
Policy Commitments N/A
Contact: Calan McKay
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2824
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management Division
Date Updated: 19/07/2022
PDR Number: QB22-000093
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 20
MOG IMPLEMENTATION
Background
On 1 June 2022, the Prime Minister and you announced a new AAO and associated
machinery of government changes, to take effect on 1 July 2022 (Attachment A). On
23 June 2022, the AAO was re-published to capture a number of additional minor
amendments which also took effect from 1 July 2022.
On 22 June 2022, the Prime Minister announced the appointment of Secretaries for
al departments other than for the Department of Industry, Science and Resources
(Attachment B).
Final transfers of annual appropriation funding are due to be submitted to Finance
by 26 August 2022.
Al pre-1 July and early milestones were completed on time. In addition to
operational matters being managed by each affected entity, these key milestones
included:
• the establishment of new and amended outcome statements for four
departments;
• the initial transfer of approximately $5 bil ion in annual appropriation funding
under the 2022-23 Supply Acts;
• the movement of 46 special appropriations, total ing approximately
$7.8 bil ion between portfolios; and
• agreement between the APSC and affected entities on the dates for the
transfer of staff between affected entities (dates are various, with the
majority of transfers occurring on 4 August 2022).
As has been the practice since 2019, it is expected that machinery of government
changes are implemented within 13 weeks of the date of effect.
• This timing would see implementation of material aspects of the machinery of
government changes by 30 September 2022.
Contact: Calan McKay
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2824
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management Division
Date Updated: 19/07/2022
PDR Number: QB22-000093
Date Last Printed: 12/08/2022 2:13 PM
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FOI 22-57 Document 20
MOG IMPLEMENTATION
ATTACHMENT A
Media Release ‘Delivering a Better Government’
1 June 2022
Prime Minister, Minister for Finance, Minister for the Public Service, Minister for
Women
Fol owing the swearing-in of the full ministry today we announce the fol owing
departmental and administrative changes that wil help deliver better government
for al Australians. These changes wil take effect on 1 July 2022.
A new Department of Employment and Workplace Relations wil be created to
implement and administer the Government’s workplace relations, jobs, skil s and
training agenda.
A new Department of Climate Change, Energy, the Environment and Water wil be
created to deliver the Government’s job-creating climate change and energy agenda
and give Australia’s environment the protection it deserves.
Reflecting key priorities of the Government the Department of Health wil be
renamed the Department of Health and Aged Care and the Department of
Infrastructure, Transport, Regional Development and Communications wil be
renamed the Department of Infrastructure, Transport, Regional Development,
Communications and the Arts.
The Department of Finance wil gain responsibility for data policy, including the
Digital Transformation Agency, as wel as de-regulation.
The Department of Home Affairs wil gain responsibility for natural disaster response
and mitigation, including the National Recovery and Resilience Agency.
The Attorney-General’s portfolio wil gain responsibility for criminal law
enforcement and policy, including the Australian Federal Police.
The new Administrative Arrangements Orders wil be published on Department of
the Prime Minister and Cabinet later today.
Contact: Calan McKay
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2824
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management Division
Date Updated: 19/07/2022
PDR Number: QB22-000093
Date Last Printed: 12/08/2022 2:13 PM
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FOI 22-57 Document 20
MOG IMPLEMENTATION
ATTACHMENT B
Media Statement ‘Announcement of New Department Secretaries’
22 June 2022
Prime Minister
Today, I am announcing my intention to recommend to the Governor-General the
appointment of four new secretaries of Australian Public Service departments.
Jim Betts wil be appointed as Secretary of the Department of Infrastructure,
Transport, Regional Development, Communications and the Arts. Mr Betts has
extensive experience in the New South Wales and Victorian public services,
including as Secretary of the NSW Department of Planning, Industry and
Environment, Secretary of the Victorian Department of Transport, and CEO of
Infrastructure NSW. He wil bring to the Federal level a deep understanding of the
priority chal enges facing Governments in this space. Mr Betts’ appointment wil
commence on 11 July 2022.
Jan Adams AO PSM wil be appointed as Secretary of the Department of Foreign
Affairs and Trade. Ms Adams is a senior career officer with the Department of
Foreign Affairs and Trade and is currently Australia’s Ambassador to Japan. She has
previously served as Ambassador to China, as a senior trade negotiator and as
Ambassador for Climate Change. Ms Adams has also had postings to Washington
and to the OECD Secretariat in Paris. Ms Adams wil commence her appointment on
1 July 2022.
Natalie James wil be appointed as Secretary of the Department of Employment and
Workplace Relations. Ms James has an extensive career in public service and
employment and workplace relations. From 2005 until 2010, she was Chief Counsel
to the Department of Education, Employment and Workplace Relations, becoming a
State Manager of that Department in 2010. In 2013, she was appointed the Fair
Work Ombudsman for the Commonwealth. Recently, Ms James has been a Partner
at Deloitte Australia. Ms James wil commence her appointment on 11 July 2022.
Contact: Calan McKay
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2824
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management Division
Date Updated: 19/07/2022
PDR Number: QB22-000093
Date Last Printed: 12/08/2022 2:13 PM
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FOI 22-57 Document 20
MOG IMPLEMENTATION
Jenny Wilkinson PSM wil be appointed as Secretary of the Department of Finance.
Ms Wilkinson, currently Deputy Secretary at Treasury, has held positions across
several departments and agencies. This includes running the Parliamentary Budget
Office, from July 2017 to January 2020. Prior to that, she held senior positions at
Treasury, the Department of Industry, the Department of Climate Change, the
Department of the Prime Minister and Cabinet, and the Reserve Bank of Australia.
Working in these roles, she has provided advice on a wide range of economic policy
issues. She was awarded a PSM in 2021 for outstanding public service in the
development of fiscal policy. Ms Wilkinson wil take up her appointment on 9 August
2022, on Rosemary Huxtable’s retirement.
Additional y, David Fredericks PSM wil be leaving his role as Secretary of the
Department of Industry, Science and Resources, to lead the newly created
Department of Climate Change, Energy, the Environment and Water. Mr Fredericks
has extensive senior experience engaging on policy and Budget within the APS and
ministers’ offices. As well as Secretary experience in both the Department of
Industry, Science and Resources, and the Department of Environment and Energy,
he has experience at the Deputy Secretary level at the Attorney-General’s
Department and the Department of Finance. He has held senior Ministerial Adviser
roles at both the Commonwealth and state levels. Prior to that he served in the
Solomon Islands’ Ministry of Treasury and Finance.
Each of these appointments wil be for five years.
Dr Gordon de Brouwer PSM wil return to the Australian Public Service as Secretary
for Public Sector Reform. Working to the Minister for the Public Service and in close
partnership with Peter Woolcott AO, the Australian Public Service Commissioner, he
wil lead and implement a wide range of public sector reforms which wil support my
commitment to place greater value on the public service and to grow its capability.
Simon Atkinson and Kathryn Campbel AO CSC wil conclude their Secretary roles
with effect from 1 July 2022. I thank them both for their service to the Australian
Public Service over many years. They have both brought great professionalism and
deep experience to the range of roles they have held, and I wish them both the best.
Ms Campbel wil be taking up a senior appointment in the Defence portfolio in an
AUKUS-related role.
I congratulate Mr Betts, Ms Adams, Ms James and Ms Wilkinson on their
appointments. The appointment of Secretary of the Department of Industry,
Science and Resources wil be made shortly. Acting Secretaries wil be appointed by
Ministers as required.
Contact: Calan McKay
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2824
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management Division
Date Updated: 19/07/2022
PDR Number: QB22-000093
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 20
MOG IMPLEMENTATION
Attached is a ful list of Secretaries and their Departments with effect from July
2022.
APS Departments and Secretaries as at 1 July 2022
Department of the Prime Minister and Cabinet
Prof Glyn Davis AC
Department of Agriculture, Fisheries and Forestry
Mr Andrew Metcalfe AO
Attorney-General’s Department
Ms Katherine Jones PSM
Department of Climate Change, Energy, the Environment and Water
Mr David Fredericks PSM
Department of Defence
Mr Greg Moriarty
Department of Education
Dr Michele Bruniges AM
Department of Employment and Workplace Relations
Ms Natalie James
[from 11 July 2022]
Department of Finance
Ms Jenny Wilkinson PSM
[from 9 Aug 2022]
Department of Foreign Affairs and Trade
Ms Jan Adams AO PSM
Department of Health and Aged Care
Prof Brendan Murphy AC
Department of Home Affairs
Mr Michael Pezzullo AO
Department of Infrastructure, Transport, Regional Development,
Mr Jim Betts
Communications and the Arts
[from 11 July 2022]
Department of Industry, Science and Resources
TBC
Department of Social Services
Mr Ray Griggs AO CSC
Department of Veterans’ Affairs
Ms Elizabeth Cosson AM CSC
Department of the Treasury
Dr Steven Kennedy PSM
Contact: Calan McKay
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2824
Contact No: (02) 6215 2668
Division: Financial Analysis, Reporting and
Cleared by Adviser:
Management Division
Date Updated: 19/07/2022
PDR Number: QB22-000093
Date Last Printed: 12/08/2022 2:13 PM
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FOI 22-57 Document 21
NATIONAL INTERMODAL
DEVELOPMENT OF INTERMODAL TERMINALS IN VICTORIA AND
QUEENSLAND Issue
What is the status of the Victorian and Queensland Intermodal
Terminals?
Headline Response
The Government, through the National Intermodal Corporation (National
Intermodal), is continuing to facilitate the development of new
intermodal terminals in Melbourne and Brisbane.
Talking Points
• National Intermodal is the Commonwealth’s investment vehicle for intermodal
terminals in Melbourne and Brisbane to support Inland Rail, and is also
responsible for the delivery and oversight of the Moorebank Intermodal
Precinct in Sydney.
• The projects wil provide open and non-discriminatory third-party access to
intermodal terminals, supporting the development of a more efficient and
effective national freight network and market.
• National Intermodal is working closely with the Government, respective state
and local governments and the Australian Rail Track Corporation to plan and
deliver the new Melbourne and Brisbane intermodal terminals, minimising risk
to delivery and timeframes. National Intermodal wil leverage its capability and
prior experience in delivering the Moorebank precinct to support this project.
If asked about the Beveridge land option in Victoria
• National Intermodal has reached agreement with Qube to purchase its option
to acquire a Melbourne terminal site at Beveridge, in Victoria.
• National Intermodal wil undertake due diligence on the site and seek
Government agreement before making a final decision whether to acquire the
site.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 07/07/2022
PDR Number: QB22-000094
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 21
NATIONAL INTERMODAL
Policy Commitments
• The Government’s investment in intermodal terminals aligns closely with its
policy commitment under the National Reconstruction Fund, to improve the
efficiency and integration of the national freight transport network.
• The Government has committed to a review of the Inland Rail project, which
wil consider the end points for Inland Rail.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 07/07/2022
PDR Number: QB22-000094
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 21
NATIONAL INTERMODAL
Background
In 2012, the Moorebank Intermodal Company (MIC) was established as a
Government Business Enterprise to oversee the development of an intermodal
terminal precinct on Commonwealth-owned land at Moorebank.
The Commonwealth, as sole shareholder, is taking the necessary steps to reflect the
company’s new name and broader remit, including amending corporate governance
documentation and progressing legislative amendments.
On 18 December 2021, the
Financial Framework (Supplementary Powers)
Amendment (Infrastructure, Transport, Regional Development and Communications
Measures No. 6) Regulations 2021 took effect, reflecting the company’s new name
(National Intermodal Corporation) and expanded mandate. On 24 February 2022,
the company registered its new name with the Australian Securities and
Investments Commission. Further legislative changes remain in progress.
Victorian and Queensland Terminal Business Cases
In the 2019-20 Budget, the Australian Government committed $20 mil ion to fund
business cases with the Victorian and Queensland state governments (capped at
$10 mil ion each and subject to state government contributions) to progress
planning for the development of intermodal terminals in Melbourne and Brisbane.
The terminals wil integrate into Inland Rail’s offering by accommodating
double-stacked trains.
The business case for a terminal solution in Victoria to support Inland Rail was
completed in March 2021. A business case for a terminal in Brisbane to support
Inland Rail is underway in partnership with the Queensland Government and is
expected to be completed by mid-July 2022. These business cases assessed a range
of implementation strategies and includes recommendations on which locations
would provide the best value for money investment.
The Government wil consider the outcomes from these business cases fol owing
assessment by the Department of Finance and the Department of Transport,
Regional Development and Communications and the Arts, including consultation
with National Intermodal.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 07/07/2022
PDR Number: QB22-000094
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 21
NATIONAL INTERMODAL
Moorebank Intermodal Terminal Precinct (Moorebank precinct)
Identified by Infrastructure Australia as a priority project, the Moorebank precinct is
expected to deliver up to $11 bil ion in economic benefits over the next 30 years,
including improved productivity, reduced costs to businesses, reduced road
congestion and enhanced sustainability.
Sydney Intermodal Terminal Al iance, which has since been acquired by Qube
Holdings Limited contributed an investment of around $1.5 bil ion, plus contributed
land. The Commonwealth is supporting National Intermodal through contributed
land and equity contributions.
The planned precinct includes an Import-Export (IMEX) Terminal, a dedicated
interstate freight terminal and associated warehousing.
The precinct is planned to ultimately have a combined capacity for 1.55 mil ion
freight containers and warehousing capacity of up to 850,000 square metres (note
600,000 square metres has been approved by planning authorities to date).
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 07/07/2022
PDR Number: QB22-000094
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 22
NBN CO
NBN CO CURRENT ISSUES Issue
What are the Government’s plans for the National Broadband Network?
Headline Response
The Government has committed $2.4 bil ion to upgrade NBN Co’s Fixed
Line network, expanding full-fibre NBN access to an additional 1.5 million
premises and providing 90 per cent of Australians in the fixed line
footprint with access to gigabit speeds by 2025.
Policy Commitments
Fixing the NBN
• The Government has committed $2.4 bil ion to fix the NBN and deliver the
following outcomes:
– Expanding full-fibre network access to an additional 1.5 mil ion premises,
including 660,000 premises in regional and rural Australia; and
– Providing 90 per cent of Australians in NBN Co’s Fixed Line footprint, over
10 mil ion premises, with gigabit speed access.
• This commitment builds on NBN Co’s current investment program which
commits to delivering gigabit capable speeds to 75 per cent of the Fixed Line
network by 2023 (refer Background).
• The Government is working with NBN Co to determine the most effective
delivery arrangements for this additional investment.
• The Government intends to retain NBN Co in public ownership for the
foreseeable future.
Better Connectivity for Rural and Regional Australia Plan
• In June 2022, the Government made a $480 mil ion grant to NBN Co under the
Better Connectivity for Rural and Regional Australia Plan.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 29/07/2022
PDR Number: QB22-000095
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 22
NBN CO
– NBN Co wil separately contribute $270 mil ion, bringing total funding for
this upgrade to $750 mil ion.
• This funding wil support NBN Co’s upgrade of the Fixed Wireless network,
providing the Fixed Wireless footprint with access to speeds of up to
100 megabits per second (Mbps), with 85 per cent of the footprint able to
access 250 Mbps.
• The commitment also provides for increased data al owances for NBN Co’s Sky
Muster Satellite services, and wil al ow for improved network experiences for
Satellite customers.
– On 4 July 2022, NBN Co announced that end-users connected to NBN Co’s
Sky Muster Plus satellite services wil have access to unmetered usage
between 12am and 4pm as of 1 July 2022.
Other Election Commitments
• In addition to its
Fixing the NBN policy and
Better Connectivity for Rural and
Regional Australia Plan, the Government committed to delivering the
following:
–
Free broadband access: under its
Plan to Boost Education Opportunities
for 30,000 Families with No Internet at Home, the Government committed
to providing free broadband access for up to 30,000 families per year.
–
Feasibility of decongesting satellite beams: Shareholder Ministers are
working with NBN Co to examine the feasibility of reducing congestion on
NBN Co’s satellite network in areas served by NBN Co’s most congested
satellite beams.
Special Access Undertaking
• On 27 July 2022, the Minister for Communications, the
Hon Michel e Rowland MP, announced the Government’s support for NBN Co
withdrawing its Special Access Undertaking (SAU) proposal currently under
consideration with the Australian Competition and Consumer Commission
(ACCC).
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 29/07/2022
PDR Number: QB22-000095
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 22
NBN CO
– Minister Rowland stated that the current SAU variation, submitted under
the previous Government, was under-pinned by unrealistic revenue
expectations, and reflected views to privatisation.
• The Government expects NBN Co to submit a revised SAU proposal which
responds to concerns raised by industry on the current proposal and which
aligns with the Government’s priorities to maintaining ownership of NBN Co for
the foreseeable future, while delivering an affordable, reliable and high-quality
network.
• NBN Co has been asked to work closely with the ACCC, retail service providers
and other industry stakeholders in developing a revised SAU that serves the
interests of Australian consumers while ensuring NBN Co remains commercial y
viable.
If asked about whether the Government would write-down its investment in
NBN Co:
• The Government has committed to further investments in the NBN network
under the ‘Fixing the NBN’ plan. The commercial sustainability of NBN Co is
central to our ability to improve the network and provide better services and
pricing to Australian consumers.
• The value of NBN Co is established independently of government, in
accordance with accounting standards.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 29/07/2022
PDR Number: QB22-000095
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 22
NBN CO
Background
Investment Acceleration Program
NBN Co’s existing 2020-21 Corporate Plan included $6.0 bil ion in new investments.
• The $4.5 bil ion network upgrade program to 2022-23 includes:
– $3.5 bil ion to upgrade the Fixed Line network to enable gigabit capable
(1,000 Mbps) speeds for up to 4.7 mil ion premises;
– $700 mil ion for smal to medium business enablement, including investing
in Business Fibre Zones; and
– $300 mil ion to establish a State, Territory and Local Government co-
investment fund for regional Australia.
• NBN Co is also investing $1.5 bil ion in the fol owing:
– $200 mil ion for IT Simplification to reduce costs for NBN Co and retailers
and improve overal customer experience;
– $300 mil ion for COVID-19 industry support – including a 40 per cent
Connectivity Virtual Circuit (CVC) boost and $150 mil ion worth of financial
assistance packages;
– $400 mil ion to implement a regional and rural business unit; and
– $600 mil ion for connecting 300,000 new premises identified outside of
the 2021-22 Corporate Plan process, including greenfield developments.
Key Metrics
As at 21 July 2022 there are:
• 12.1 mil ion premises ‘ready to connect’; and
• 8.5 mil ion premises with an active NBN service.
As at 31 March 2022, 76 per cent of NBN Co’s end-users are on a 50 Mbps plan or
higher, including 18 per cent of users on a 100 Mbps or higher plan.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments
Cleared by Adviser:
Date Updated: 29/07/2022
PDR Number: QB22-000095
Date Last Printed: 12/08/2022 2:13 PM
Page
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FOI 22-57 Document 23
NEW CPRS
UPDATED COMMONWEALTH PROCUREMENT RULES Issue
“Why did the Government make changes to the Commonwealth
Procurement Rules (CPRs)?”
Headline Response
Changes to the CPRs came into effect on 1 July 2022 to support the
delivery of key social and economic outcomes that benefit al Australians.
These outcomes include supporting action on climate change,
strengthening opportunities for smal and medium enterprises (SMEs),
and delivering value for money outcomes for taxpayers. This was the first
step in implementing our
Buy Australian Plan and we’l have more to say
about implementing this key element of Labor’s plans to build a future
made in Australia
Talking Points
• Each year the Australian Government spends approximately $70 bil ion on
procuring goods and services.
– This spending is a significant economic lever – it stimulates growth in smal
and regional business and across industry sectors, ultimately al owing
businesses to employ more staff.
• The changes to the CPRs deliver on our election commitment to boost the
number of SMEs that can benefit from Government spending by requiring 20
per cent of procurements by value to be sourced from SMEs.
– This doubles the previous target of 10 per cent.
• The changes also include action on climate change, in line with the
Government’s commitment to reduce emissions. Officials are now required to
consider a procurement’s broader climate change impacts when undertaking a
value for money assessment.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance
Cleared by Adviser:
Date Updated:20/07/2022
PDR Number: QB22-000096
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 23
NEW CPRS
• The CPRs also now explicitly encourage entities to approach multiple suppliers
when procuring from a panel arrangement. This improves competition, driving
value for money and ensuring a better deal for the taxpayer.
• This was the first step in implementing the
Buy Australian Plan we took to the
last election, and we’l have more to say about this policy and how it fits into
this Government’s plan to build a future made in Australia.
Policy Commitments
• Under its Buy Australian Plan, the Government has committed to:
– using government spending power to take action on climate change and
support energy projects;
– opening the door to more government work for more smal and medium
business; and
– providing more opportunities for First Nations businesses with a view to
maximising skills transfer; and
– establishing a Future Made in Australia Office, backed up by laws that lock
in key elements of the CPRs to actively support local industry to take
advantage of government purchasing opportunities.
• The Government has also committed to maximising smal business
participation in Commonwealth procurement under its Better Deal for Smal
Business policy.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance
Cleared by Adviser:
Date Updated:20/07/2022
PDR Number: QB22-000096
Date Last Printed: 12/08/2022 2:14 PM
Page
2 of
5
FOI 22-57 Document 23
NEW CPRS
Background
On 1 July 2022, in a joint media release between the Minister for Finance and the
Minister for Small Business, the Government announced changes to the CPRs that
came into effect on 1 July 2022. The changes were in addition to those announced
by the former Government in early 2022, and are detailed in Attachment A.
In March 2022, the former Government announced changes to the CPRs that came
into effect on 1 July 2022. These changes support this Government’s objectives in
simplifying Commonwealth procurement and supporting procurement opportunities
for SMEs by:
– improving SME engagement, awareness and capability to tender for
Commonwealth procurement opportunities;
– requiring officials to consider disaggregating large projects into smal er
packages, where appropriate, which increases competition and
opportunities for SMEs and mid-tier businesses to participate in larger
scale procurements, and builds sovereign capability;
–
reducing up-front tendering costs for suppliers; and
–
encouraging consideration of appropriate risk-sharing between suppliers
and Commonwealth entities.
Media articles on the changes to the CPRs to date have been positive or neutral.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance
Cleared by Adviser:
Date Updated:20/07/2022
PDR Number: QB22-000096
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 23
NEW CPRS
Small and Medium Enterprises
Amended text reflecting the removal of the $1 million
(5.8)
threshold in the
Supplier Pay On-Time or Pay Interest Policy –
Resource Management Guide (RMG 417).
Procurement risk (8.4)
New text to provide that suppliers do not need to take out
insurance until a contract is to be awarded and to limit
insurance imposts in contracts and embed the principle of
risk sharing by better reflecting the actual risk in contractual
liability.
Appendix A: Exemption 17
Amended text al owing the Department of Defence to
directly engage an SME for procurements valued up to
$500,000 (note: the requirements under the
Indigenous
Procurement Policy must first be satisfied before this
exemption is applied).
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement and Insurance
Cleared by Adviser:
Date Updated:20/07/2022
PDR Number: QB22-000096
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 24
QBT
QBT WAIT TIMES AND DELAYS Issue
What is the Government doing to address the responsiveness issues
being experienced with the Government’s travel management service
provider?
Headline Response
The Government recognises the difficulties the travel industry has been
facing. The Department of Finance has been working with the
Government’s travel management service provider to return to normal
operations.
Talking Points
• The Government acknowledges the impacts that COVID-19 and the associated
travel restrictions has had on the travel industry.
• Increased cal wait times have been caused by workforce chal enges across the
travel industry.
• My Department has been working closely with the service provider on
strategies to reduce cal wait times. Actions include the:
– introduction of automated notice of travel bookers’ queue position when
on hold;
– improvements to the online booking tool to reduce cal centre demand;
and
– re-introduction of dedicated Account Managers for each entity to improve
responsiveness.
• Cal wait times have improved with average hold times reducing by 67 per cent
since April 2022.
• My Department has been providing entities with regular communications,
including tips and industry updates, to assist with the management of travel
during this chal enging time.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement & Insurance
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000097
Date Last Printed: 12/08/2022 2:14 PM
Page
1 of
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FOI 22-57 Document 24
QBT
• Finance has been actively working with Commonwealth entities to increase the
uptake of QBT’s online travel booking tool. Greater use of the tool wil further
improve the responsiveness of QBT’s cal centres.
Policy Commitments
• N/A
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement & Insurance
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000097
Date Last Printed: 12/08/2022 2:14 PM
Page
2 of
3
FOI 22-57 Document 24
QBT
Background
The Department of Finance manages a range of non-ICT whole of Government
procurement arrangements that leverage aggregated purchasing power to deliver
price savings and administrative efficiencies. The Whole of Australian Government
Travel Arrangements are coordinated procurements established and managed by
the Department of Finance which involve approximately 140 participating entities
and over 20 suppliers.
The travel arrangements are designed to reduce travel-related costs and
streamline processes for agencies when booking and paying for official travel. The
arrangements include travel management services, domestic and international air
travel services, accommodation, car rental, and travel and payment cards.
The Travel Management Services (TMS) contract provides travel booking and
management services to participating entities.
QBT Pty Ltd is the sole provider under the TMS Deed, which commenced on
1 July 2015 with an initial term of four years. A final twelve-month Extension
Option has been used to extend the contract to 30 June 2023. Exercising the final
extension to the TMS Deed provides Finance time to undertake an open tender
process to establish a new TMS arrangement.
On 25 March 2022, Corporate Travel Management (CTM) acquired the corporate
and entertainment travel arm of Hel oworld Limited, which included QBT and AOT
Hotels. This was done with the consent of Finance, as required under the travel
and accommodation arrangements. This sale was completed on 1 April 2022.
In line with the COVID-19 Procurement Policy Note issued in May 2020, Finance
has managed specific issues arising as a result of COVID-19 in a col aborative and
sensible manner. This has included periods of reduced travel management service
level requirements to reflect the unique circumstances caused by the pandemic.
These reduced levels are no longer in place.
Senior Executives from Finance have met and continue to meet regularly with the
CEO of CTM to critical y manage the issues.
Finance has commenced preparation of a competitive tender process for a new
travel management service arrangement at the expiration of the current contract
in June 2023. The new arrangement wil al ow for a refresh of the service offering
and a review of new technologies to better support Government travel needs.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Procurement & Insurance
Cleared by Adviser:
Date Updated: 11/07/2022
PDR Number: QB22-000097
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
PURPOSE-BUILT QUARANTINE CENTRES Issue
Wil the new Purpose-Built Quarantine Centres (the Centres) be required
now that states have removed quarantine requirements?
Headline Response
The Commonwealth has built these facilities in partnership with State
Governments. The facilities will provide Australia with a new resilience
capability for a range of potential future crises, including quarantine.
Talking Points
• The Government’s priority is the safety and wel being of Australians and
supporting those overseas to travel here safely.
• The Centres are investments in the future preparedness of our nation when it
comes to quarantine and other potential future crises, and wil be around for
decades to come.
• The Centres wil ensure that Australia has the capability to respond to any
future quarantine needs quickly.
• The National Review of Quarantine provided by Adj. Professor Jane Halton AO
PSM on 12 October 2021 outlined a risk-based framework for quarantine and
the importance of growing our capacity to respond to future risks.
• The Centres are purpose-built for quarantine and so reserve capacity to meet
quarantine requirements should take precedence over alternative uses.
• Now that all Centres are nearing completion, reserve quarantine capacity can
provide an ongoing and cost effective insurance policy when considering the
economic impact resulting from potential future pandemics or health crises.
• The Melbourne facility is currently being used by people needing to quarantine.
As at 26 July 2022, there were 79 people in the Mickleham facility in Victoria.
• Once there is no longer a need for dedicated quarantine accommodation for
the COVID-19 response, the Centres can be used for other purposes. Finance
wil work with Commonwealth agencies and the states on future uses for the
Centres.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
• Future use proposals wil be evaluated on a case-by-case basis noting that the
design of the Centres provides for strict infection prevention and control
mechanisms, and opens up possibilities to support: state health systems,
including for future health emergencies; humanitarian efforts (e.g. evacuees
from warzones); and temporary or crisis accommodation in responding to
natural disasters or other events.
Why has Queensland announced it wil not operate the Centre in Brisbane?
• The Queensland Government has announced that it does not have a COVID-19
use for the Centre in the short term and wil not pursue a licence agreement
with the Commonwealth.
• Whilst the Commonwealth had anticipated that Queensland would take initial
operating control of the Centre, the Memorandum of Understanding between
Governments for the construction and operation of the Centre was signed
under different circumstances - at the height of the COVID-19 pandemic
(16 August 2021) when there was a clear imperative to balance repatriation,
border restrictions, lockdowns and quarantine to reduce the spread of
COVID-19.
• The announcement by the Queensland Government does not diminish the long
term resilience capability that the Centre provides for Australia, or the capacity
for the Centre to deal with changes and chal enges that could emerge during
the current COVID-19 period.
• The Centres were always envisaged as being enduring assets, under
Commonwealth ownership and as such they can be used to respond to future
crises beyond COVID-19. The Centres have been designed and purpose built to
the highest of standards, with a long useful life and design features that
provide for strict infection prevention and control standards, a combination
that does not exist in any other facilities in Australia.
• My Department wil continue to work in partnership with the Queensland
Government as the Centre could support state health or emergency
management uses in the future.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
• In the short term, my Department wil look at bringing forward options to see
that the Centre is utilised. This wil include future national resilience options
including emergency response capability, Defence use, and private sector
opportunities that wil al be supported by the design of the Centre and the
strategic location of the Pinkenba site.
• The Managing Contractor has worked tirelessly to deliver a high quality and
enduring facility that is nearing completion. Once complete, the Centre wil
have been designed, constructed and made ready for use in record time for a
facility of this standard and quality – within a year of an agreement with
Queensland being signed. The construction of this facility has occurred during a
period of extreme weather events in South East Queensland that have made
construction extremely chal enging.
If asked whether the Centres could be used for domestic violence accommodation
• The Government is committed to supporting women and children escaping
violence. We wil make a $1.6 bil ion investment to build at least 4,000 new
social housing properties within five years for women and children fleeing
family and domestic violence as part of our Housing Australia Future Fund and
wil build 20,000 new social housing properties and 10,000 affordable homes.
• We wil also provide an extra $100 mil ion for crisis and transitional housing
options for women and children escaping violence and for older women on low
incomes who are at risk of homelessness.
• This work wil be a priority for the Government for the upcoming
October Budget process – in the mean time we would be open to considering
future use proposals from the State Governments for accommodation for
people affected by domestic and family violence who require emergency
accommodation.
• The licence agreements that are in place do provide us with the flexibility to
agree to future-use proposals, and my Department wil work with State
Governments to evaluate any that are brought forward on a case by-case basis.
• Consideration of any future-use proposal would be subject to Commonwealth
quarantine policy. While there is no longer a requirement for unvaccinated
domestic or international arrivals to quarantine, the last two years have shown
us the importance of being prepared for whatever the future holds and we wil
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
work with the States to determine the level of base capacity that wil need to
be maintained.
• Future uses wil need to be brought forward by the relevant state as a formal
proposal that can be evaluated and agreed with the Commonwealth.
What is the cost of the Centres?
• The total project cost for al three Centres (in Melbourne, Brisbane and Perth)
is estimated to be around $1.37 bil ion.
• The expected total cost for the Melbourne Centre is approximately
$580 mil ion.
• In Melbourne the 1000 bed Centre was constructed and handed over to
Victoria in stages with the initial stage completed on 31 December 2021. Final
stages of the Centre were completed in January and February 2021 with the
last buildings handed over to COVID-19 Quarantine Victoria (CQV) on
11 March 2022.
• Specific project costs for the Perth and Brisbane Centres are stil being finalised.
• The value of committed contracts associated with the Centres are publicly
reported on AusTender.
• Under the Memoranda of Understanding with the Commonwealth, the
Victorian and Western Australian governments wil operate their Centre for the
duration of the pandemic.
– The nature of any quarantine arrangements in any state wil be the
responsibility of that state government.
– States are also responsible for all procurement in relation to operational
requirements for the Centres, including provision of medical services.
• COVID-19 Quarantine Victoria currently operates the Centre in Melbourne and
the Western Australian Government has undertaken a competitive tender
process for operational services in Perth.
Status of the Purpose-built Quarantine Centre – Melbourne
• The contract was executed with the Managing Contractor, Multiplex on
27 July 2022, and contract completion was achieved in seven months, by
11 March 2022 for the entire facility.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
• The first 250 places were delivered to the Victorian Government on
21 January 2022 and 500 places by 31 January 2022, as wel as all central
facilities buildings. COVID-19 Quarantine Victoria (CQV) commenced operation
on 21 January 2022.
• The second 500 places, and the Health and Police/Administration Buildings
were provided to CQV under a shared access arrangement from
28 February 2022, and a final handover occurred on 11 March 2022.
Status of the Purpose-built Quarantine Centre – Brisbane
• The site was significantly impacted by the rain/flooding event in late February
and early March 2022 in South East Queensland. The weather event has
significantly impacted the construction of the initial accommodation zone by
the end of the first quarter 2022. The project continues to experience delays
due to inclement weather and the ongoing impact of flooding and
above-average rainfal on the East Coast of Australia.
• Significant progress has been made since construction commenced and my
Department is working with the Managing Contractor to ensure the project is
delivered as soon as possible.
• Construction is scheduled for completion in August 2022.
• The Government wil release specific costings for the Centre in Brisbane as the
site nears completion.
Status of the Purpose-built Quarantine Centre – Perth
• My Department is taking a staged completion and handover approach,
consistent with strategies for the Centre in Melbourne.
– The first 250 beds was offered to the state for shared access on
16 May 2022 al owing WA, if needed, to quickly ramp up and operate part
of the Centre for quarantine purposes before al works are complete.
– Shared access makes the first 250 beds available to the WA Government
to commence establishment activities, commissioning, testing and training
activities while the managing contractor completes minor works.
– The remaining 250 beds is expected to be complete by the end of
July 2022, with completion of the Central Facilities buildings expected to
be completed in late August.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
– The strategy is intended to enable the WA Government, or its operator, to
commence its establishment activities, commissioning, testing and
training activities prior to the Centre opening for operation.
• My Department is working with the Managing Contractor and its
subcontractors to ensure availability of materials and labour to ensure that the
Centre can be delivered within the shortest timeframe possible. The Centre wil
be complete in the coming weeks.
– Construction of the accommodation units and support facilities are likely
to be completed by the end of July. Construction of the Central Facilities
buildings are likely to be completed by the end of August 2022.
If asked about water supply to the Perth Centre
• On 7 October 2021, the previous Government announced that Defence would
progress works to connect West Bul sbrook properties to town water.
–
The Government consulted with the WA Government and the Western
Australian Water Corporation. The Department of Defence is progressing
works to connect properties to town water.
– The Defence works wil leverage the construction of a permanent pipeline
connecting the Centre to El enbrook. Construction of the permanent
connection to the Centre wil be finished later this year.
• The Centre wil use tank water until a permanent solution for water connection
to the site is finalised.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
Policy Commitments
• Centres wil be operated by the relevant state or territory governments for the
duration of their use as COVID-19 quarantine facilities or for other future uses
as agreed by the Commonwealth.
• My Department is also working closely with other Commonwealth agencies,
including Departments of Health, Home Affairs and Defence, on the longer
term future uses for the Centres once operational responsibility is returned to
the Commonwealth. The Department of Health is responsible for the
development of human quarantine policy. The Department of Home Affairs is
responsible for the arrangements for the settlement of migrants and
humanitarian entrants.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
Background
Multiplex has been appointed as Managing Contractor to lead construction and
delivery of the Centres, and site works are underway.
Multiplex is an established global construction company that has delivered over
1,000 projects across the world and has an outstanding track record of successfully
delivering complex projects across Australia.
Memoranda of Understanding
Victoria – On 4 June 2021, then Prime Minister and the Victorian Premier signed a
Memorandum of Understanding (MOU) to progress a 1,000 bed facility at
Mickleham. Mickleham was selected as the preferred site on balance of timing, cost,
impact and risk.
Queensland – On 16 August 2021, then Prime Minister and the Queensland Premier
signed a MOU to build a Centre in Brisbane. On 27 July 2022, the Queensland
Government announced that it would not be entering into a licence agreement to
operate the facility for an initial term.
Western Australia – On 16 August 2021, then Prime Minister and the Western
Australian Premier signed an MOU to progress a purpose-built quarantine and
emergency response facility in the state.
Public Interest Immunity Claim by the Minister for Finance
On 16 December 2021, the former Minister for Finance made a claim for Public
Interest Immunity on the feasibility studies completed by AECOM for the Centres in
Brisbane and Perth as they contain technical assumptions being used to inform
ongoing active procurement processes. Release of this information would impact
commercial arrangements with the market and prejudice the Commonwealth’s
ability to achieve value for money outcomes. It could also disadvantage third parties
and the Commonwealth’s contractors.
The release of the feasibility studies would disclose information that was considered
by the Commonwealth, the Western Australian and Queensland Governments in
their deliberations and could potential y damage relations between the
Commonwealth and the states.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 25
QUARANTINE
Water Supply to Bullsbrook
Prior to selecting the site at Bullsbrook, an independent feasibility study was
undertaken by engineering firm AECOM, looking at usual planning, environmental
and health issues. The engineers found that the site was both safe and suitable.
There are no existing water connections available to the Bullsbrook site. Existing
residential properties in the area are currently supplied by bore water, the centre
has a tank supply as an interim solution for potable water supply, which with be
transitioned to town mains water fol owing the completion of the 12.5km
permanent water supply pipeline from El enbrook.
PFAS Contamination at Bullsbrook
The Bullsbrook Training Area is not connected to the Pearce Airbase (that has been
the subject of community concerns related to PFAS). The Bullsbrook Training Area is
approximately three kilometres away across the Tonkin Highway and closer to fruit
and vegetable growers to the North of the site than it is to Pearce Airbase.
The particular area has previously been used by Defence for telecommunications
infrastructure that is no longer required. Parcels of land adjoining the area are
leased to a farmer for grazing.
Independent feasibility engineering firm AECOM found that the site was safe and
suitable. The study noted that it was unlikely that PFAS could travel against the
direction of groundwater flow, kilometres away uphil to the location of the Centre.
The groundwater is tested by Defence on a quarterly basis.
AECOM also had access to previous environmental studies produced for the
Department of Defence, including recent environmental investigations by an
independent expert.
Contact: David O’Connor
Cleared by: Andrew Jaggers
Contact No: (02) 6215 3889
Contact No: (02) 6215 3853
Division: Quarantine Infrastructure Delivery
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000098
Date Last Printed: 12/08/2022 2:14 PM
Page
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FOI 22-57 Document 26
RACHELLE MILLER
CLAIM FROM RACHELLE MILLER
Issue
What is the status of the claim from Rachelle Miller?
Headline Response
The Commonwealth takes Ms Mil er’s claim seriously.
The Commonwealth and Ms Mil er have reached a settlement on terms
agreeable to both parties in relation to this matter.
Talking Points
• The Government treats every report of bullying and harassment seriously.
• The Government ensures such claims are managed sensitively and
confidential y to respect a claimant’s privacy and ensure the integrity of the
dispute resolution process.
• The Department of Finance (Comcover) has engaged with Ms Mil er’s legal
representatives on behalf of the Commonwealth, in accordance with its
obligations under the
Legal Services Directions 2017 (Directions).
• Throughout the process, the Commonwealth and its legal representatives have
engaged promptly and regularly, noting the sensitivity and complexity of the
matters involved.
• Fol owing negotiations, the Commonwealth has reached a settlement with
Ms Mil er in relation to her claim linked to her employment as a parliamentary
staffer.
Did the Commonwealth delay settlement?
• The parties’ legal representatives engaged in discussions since Ms Mil er’s legal
representatives initial y wrote to the Commonwealth in June 2021.
• The Commonwealth received further correspondence from Ms Mil er’s legal
representatives in December 2021 outlining the details of her claim.
Contact: s 22
Cleared by: Rachel Antone
Contact No: s 22
Contact No: (02) 6215 3382
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 19/07/2022
PDR Number: QB22-000099
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 26
RACHELLE MILLER
• The process subsequently undertaken included a mediation discussion that was
fol owed by a number of further communications regarding settlement terms.
• At al times, the Department of Finance (Comcover) engaged with Ms Mil er’s
legal representatives on behalf of the Commonwealth, in accordance with its
obligations under the Directions.
• The issues involved were complex and sensitive, and required extensive
engagement between the Commonwealth and Ms Mil er’s legal
representatives.
• The Commonwealth was always committed to resolving the matter promptly.
Who approved the settlement? • The claim was reported to the Office of Legal Services Coordination in the
Attorney-General’s Department as significant under the Directions in
September 2021.
• The Directions require that significant claims cannot be settled without the
approval of the Attorney-General.
• A delegate of the Attorney-General considered this matter in accordance with
the Directions and approved the settlement.
Why is the settlement not confidential? • The terms of the settlement deed were agreed between the Commonwealth
and Ms Mil er.
• The Commonwealth did not seek confidentiality over the settlement sum or
the terms of the settlement deed.
• The parties have agreed to preserve confidentiality over the mediation
discussions between the parties.
• Maintaining confidentiality over the mediation processes is standard practice in
alternative dispute resolution and broader dispute resolution processes.
Maintaining this confidentiality enables al parties to negotiate freely and
openly.
• The settlement deed does not prevent Ms Mil er from making public
statements sharing her experiences and discussing the substance of her claim.
Contact: s 22
Cleared by: Rachel Antone
Contact No: s 22
Contact No: (02) 6215 3382
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 19/07/2022
PDR Number: QB22-000099
Date Last Printed: 12/08/2022 2:15 PM
Page
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RACHELLE MILLER
– This is consistent with Recommendation 38 of the Respect@Work report
which addressed concerns that claimants, if they wish to, should be able
to share their experiences and discuss al egations.
Does the settlement include Mr Tudge and Senator Cash?
• The settlement is between Ms Mil er and the Commonwealth only.
• The Department did not brief any former Commonwealth Ministers in relation
to the detail of the settlement negotiations, nor did it engage with other
parties during the mediation process.
• The parties acknowledge that the settlement is not an admission of liability by
the Commonwealth.
Did the alleged leaks come from a Commonwealth source?
• The Commonwealth completed an examination of its information-handling
processes and confidentiality arrangements.
• There is no evidence that any confidential information relating to this matter
was inappropriately disclosed by the Commonwealth.
Policy Commitments
• The Government is committed to implementing the Australian Human Rights
Commission, ‘Respect@Work: Sexual Harassment National Inquiry Report’
(2020) and ‘Set the Standard: Report on the Independent Review into
Commonwealth Parliamentary Workplaces’ (2021).
Contact: s 22
Cleared by: Rachel Antone
Contact No: s 22
Contact No: (02) 6215 3382
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 19/07/2022
PDR Number: QB22-000099
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 26
RACHELLE MILLER
Background
Ms Rachel e Mil er was employed by the LNP as a parliamentary staffer over a
number of years while they were in Government and Opposition.
On 5 November 2020, Ms Mil er made a complaint to the Department of Finance
al eging she was subject to bullying, harassment and discrimination during her
employment with Mr Tudge and Senator Cash. This complaint was subject to an
independent review by Sparke Helmore, which found there was insufficient
evidence to substantiate the al egations made by Ms Mil er. Ms Mil er chose not to
participate in the review. Ms Mil er was advised of this outcome on 11 June 2021.
On 23 June 2021, Ms Mil er made a number of claims to the Department of
Finance, including bul ying, sexual harassment and sexual discrimination, against
Mr Tudge and others. Ms Mil er sought damages and legal costs.
Fol owing the release of the Jenkins report (‘
Set the Standard: Report on the
Independent Review into Commonwealth Parliamentary Workplaces’) on
2 December 2021, Ms Mil er made a public statement al eging that her
relationship with Minister Tudge was abusive. As announced by the then
Prime Minister on 2 December 2021, a review into these matters was conducted
by Dr Vivienne Thom AM. Ms Mil er chose not to participate in the review.
The Thom Review dated 27 January 2022 concluded, in summary:
‘…there is insufficient evidence to support a finding on the balance of
probabilities that:
• Mr Tudge bullied or harassed Ms Mil er.
• Ms Mil er’s relationship with Mr Tudge was emotionally abusive.
• Mr Tudge was physically abusive to Ms Mil er during a work trip
to Kalgoorlie Western Australia.’
In accordance with the
Legal Services Directions 2017, Comcover received legal
advice from senior counsel about prospects.
Based on that legal advice, the Commonwealth, through Comcover, then entered
into settlement discussions with Ms Mil er and a mediation took place on
16 March 2022. Settlement discussions were between the Commonwealth and
Ms Mil er only.
Contact: s 22
Cleared by: Rachel Antone
Contact No: s 22
Contact No: (02) 6215 3382
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 19/07/2022
PDR Number: QB22-000099
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 26
RACHELLE MILLER
s 42
Contact: s 22
Cleared by: Rachel Antone
Contact No: s 22
Contact No: (02) 6215 3382
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 19/07/2022
PDR Number: QB22-000099
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 26
RACHELLE MILLER
She has since gone public about her affair with Tudge, saying it was emotionally and on one
occasion physically abusive. He denies those claims but stood aside from the frontbench while an
independent investigation took place.
Before taking the legal action, Miller filed a workplace bullying complaint with the Department of
Finance over her treatment by Tudge, alleging that he belittled and humiliated her, and a separate
complaint about the process that forced her out of Cash’s office.
Now Prime Minister Scott Morrison has cleared the way for Tudge – who is still technically in
cabinet – to return to the ministry after the election.
The Department of Finance and Miller are in the final stages of settling the suit. The settlement
figure will remain confidential but is understood to be more than $500,000.
As with the settlement the government struck with the High Court associates who had been
sexually harassed by former judge Dyson Heydon, the non-disclosure agreement will only cover
the amount paid, and won’t prevent Miller from speaking about her experiences.
Morrison has said he had “no visibility” over the settlement.
“I can’t confirm to you whether a payment has even been made,” he told 5AA radio in Adelaide on
Tuesday.
“But I know it’s taxpayers’ money, and those matters are handled by the Department of
Finance at arm’s length from politicians including, you know, the Special Minister of State.”
The government’s rules for handling legal matters say any settlement over $100,000 must be
treated as a major claim. This includes seeking written independent legal advice from either the
Australian Government Solicitor or an outside law firm that the settlement is in accordance with
legal principle and practice.
The legal service directions also warn government departments that settling a claim “requires the
existence of at least a meaningful prospect of liability being established” and the amount of a
payout must consider the prospects of a claim’s success in court.
“In particular, settlement is not to be effected merely because of the cost of defending what is
clearly a spurious claim,” the rules state.
A spokesperson for the Department of Finance said the department “has been engaging with Ms
Miller’s legal representatives on behalf of the Commonwealth, in accordance with its
obligations under the Legal Services Directions 2017”.
“The Department does not comment on the details of any individual claim,” they said.
Morrison’s department commissioned respected investigator Dr Vivienne Thom to examine the
nature of Miller and Tudge’s relationship.
Miller did not participate in the investigation on legal advice. Thom’s report, released on
March 4, found no evidence Tudge had broken the ministerial code of conduct at the time.
Contact: s 22
Cleared by: Rachel Antone
Contact No: s 22
Contact No: (02) 6215 3382
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 19/07/2022
PDR Number: QB22-000099
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 26
RACHELLE MILLER
Morrison was asked on Tuesday “does money just fly out of the sky in the Finance Department”
without any oversight, given he has no knowledge of the settlement with Miller.
“You’re also assuming that there is any wrongdoing on Alan Tudge’s part. No matter has been
raised with me by the Department of Finance in relation to any of those things,” Morrison said.
“We had an independent investigation by Vivienne Thom ... so the suggestion that Alan is in some
way being found, you know, it’s not supported by the independent inquiry.”
Labor says it’s not good enough for the prime minister to say he doesn’t know how $500,000 is
being spent.
“If Alan Tudge did nothing wrong, why was half a million dollars in taxpayers’ money spent in
compensation? And if Alan Tudge did do something wrong, why is he still in the cabinet?” Labor
frontbencher Jason Clare said.
“This stinks.”
Jacqueline Maley cuts through the noise of the federal election campaign with news,
views and expert analysis. Sign up to our Australia Votes 2022 newsletter here.
Katina Curtis is a political reporter for The Sydney Morning Herald and The Age, based at
Parliament House in Canberra. Connect via Twitter or email.
Contact: s 22
Cleared by: Rachel Antone
Contact No: s 22
Contact No: (02) 6215 3382
Division: Procurement and Insurance Division
Cleared by Adviser:
Date Updated: 19/07/2022
PDR Number: QB22-000099
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 27
REGULATORY REFORM
REGULATORY REFORM
Issue
“What is the Government doing to fulfil the Prime Minister’s commitment
to move quickly to revive the process of regulatory reform?”
Headline Response
The Government has established a dedicated regulatory reform and
deregulation function within the Department of Finance.
Talking Points
• The Government is reviving the process of regulatory reform to drive
productivity through cooperative federalism. We have established a regulatory
reform and deregulation function within the Department of Finance to lead a
whole-of-Government regulatory reform, including with the states.
Policy Commitments
• The Prime Minister committed to ‘move quickly to revive the process of
regulatory reform’ to drive productivity through cooperative federalism
(9 March 2022, speech to Australian Financial Review ‘New Platform for
Growth’).
• On 17 June 2022, the Prime Minister also said “[w]e need to boost productivity.
We need to return to micro-economic reform. We need to remove duplication
where it’s there between the Commonwealth and States and Territories.”
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6271 3853
Division: Regulatory Reform Division
Cleared by Adviser:
Date Updated: 10/7/2022
PDR Number: QB22-000100
Date Last Printed: 12/08/2022 2:15 PM
Page
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REGULATORY REFORM
Background
Policy responsibility for regulatory reform and the Regulatory Reform Division,
including the staff of the Deregulation Taskforce, transferred from the Department
of the Prime Minister and Cabinet to Finance on 1 July 2022. The formal transfer of
staff into the Department of Finance wil take effect on 4 August 2022.
The Regulatory Reform Division is continuing to implement the “Workplan to reduce
the burden of overlapping regulations” agreed by National Cabinet on
10 December 2021 and the Council of Federal Financial Relations on
26 November 2021.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6271 3853
Division: Regulatory Reform Division
Cleared by Adviser:
Date Updated: 10/7/2022
PDR Number: QB22-000100
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 28
SNOWY HYDRO
SNOWY HYDRO CURRENT ISSUES Issue
Delays of 19 months to the Snowy 2.0 project schedule have been
reported in the media.
Headline Response
Snowy Hydro is undertaking a cost and schedule review of the Snowy 2.0
project to ensure it is delivered to support the operations of the National
Electricity Market in time with the necessary transmission links.
Talking Points
Snowy 2.0
• Snowy 2.0 remains a critical project to ensure sufficient energy capacity is
available in the future and to secure reliable electricity for Australian
consumers.
• Delays are expected to the commissioning of Snowy 2.0, consistent with those
recently reported. The Government is working with Snowy Hydro to
understand the extent of project delays.
• Snowy Hydro is undertaking a cost and schedule review of the project. It is
expected that Snowy Hydro conclude the cost and schedule review later this
year.
• Snowy Hydro and its contractor (Future Generation Joint Venture) are working
through the issues impacting construction progress to ensure that the project is
delivered ahead of the necessary transmission links.
Transmission
• Both HumeLink (north toward Sydney) and VNI West (south toward
Melbourne) are needed to ensure certainty of electricity supply for Snowy 2.0.
• On 30 June 2022, AEMO released its 2022 Integrated System Plan (ISP),
identifying both HumeLink and VNI West as urgently actionable projects.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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SNOWY HYDRO
• The optimal delivery dates included in the ISP are July 2026 for HumeLink and
July 2031 for VNI West. AEMO notes that earlier delivery could provide
additional resilience benefits for the market.
Energy Crisis
• Recent events including coal power station outages, high gas and coal prices
and persistent wet weather have placed significant pressure on the National
Electricity Market (NEM).
• Snowy Hydro plays an important role in providing on-demand electricity
generation to support through NEM throughout volatile periods. During the
recent energy crisis Shareholder Ministers re-iterated the Government’s
expectation that Snowy Hydro take al necessary actions in supporting the NEM
and delivering reliable, secure and affordable energy across Australia.
• On 31 July 2022, the Australian Financial Review published an article suggesting
that Snowy Hydro had contributed to, and profiteered from, the recent energy
crisis, including by contributing to gas shortages (Attachment A). As a
Government-owned business, Snowy Hydro is expected to operate its business
in a responsible way to enhance the energy security of the NEM and help to
lower prices for consumers. This includes responsibly managing its resources,
including water and gas, without exacerbating shortages.
• On 29 July 2022, Snowy Hydro issued a media release rejecting claims they
were to blame for recent high prices in the NEM or that they profiteered
(Attachment B).
• On 14 June 2022 the AER issued a compliance notice to al electricity market
generators reminding participants of their obligations under the National
Energy Rules (NER). Snowy Hydro is not exempt from NER obligations. The AER
compliance processes is stil ongoing.
• The Australian Energy Market Operator (AEMO) has taken unprecedented
steps to manage ongoing pressures, including the temporary suspension of the
electricity spot market from 15 June 2022 until 24 June 2022.
• AEMO has also recently directed the curtailment of gas supply to two Snowy
Hydro gas-fired generation facilities as a result of depleted gas reserves in
Victoria. The Government expects Snowy Hydro to adhere to the directions
issued by AEMO to maintain the security of Victoria’s gas system.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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SNOWY HYDRO
The Hunter Power Project (HPP)
Election Commitment – Hydrogen Capability
• On 1 February 2022, the Prime Minister and Minister for Climate Change and
Energy announced the Government’s commitment for the Hunter Power
Project to operate on 30 per cent green hydrogen from commissioning, with
the ability to operate on 100 per cent green hydrogen in the future
(Attachment C).
• The Government continues to work closely with Snowy Hydro to realise this
commitment.
• Delivery of the Hunter Power Project continues to progress with significant civil
works conducted to support site mobilisation.
• On 20 June 2022, Snowy Hydro announced that it had executed agreements
with APA Group related to gas transport, storage and development for the
project.
Policy Commitments
• The Government intends to enable and support transmission infrastructure
through its Rewiring the Nation policy, which may assist in the delivery of
HumeLink and VNI West.
• The Government is committed to reducing emissions by 43 per cent by 2030
and to achieving net zero emissions by 2050.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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SNOWY HYDRO
Background
Hunter Power Project
Snowy Hydro is constructing a 660 megawatt Open-Cycle Gas Turbine Power Plant in
Kurri Kurri, NSW, with expected commissioning by December 2023.
The total cost of the project is $600 mil ion, with the Government contributing the
entire $600 mil ion as equity toward the project. The total cost does not include the
costs to construct the APA Group built, owned and operated gas pipeline and
storage facility, which wil be leased by Snowy Hydro.
The initial business case indicated an Internal Rate of Return (IRR) of 12.3 per cent.
Up to 600 new jobs wil be created during the construction phase, 10 jobs during the
operational phase and 1,200 indirect jobs across NSW.
On 17 December 2021, the NSW Government provided final environmental and
planning approvals for the project. On 12 December 2020, the NSW Government
declared the project Critical State Significant Infrastructure.
Snowy 2.0
On 9 June 2022, the Australian Financial Review and others reported that Snowy 2.0
was 19 months delayed as a result of a series of issues involving contractors and
construction progress.
Snowy 2.0 is an expansion of the existing Snowy Mountains Hydro-electric scheme
and is expected to:
– increase the Snowy Scheme’s generation capacity by approximately
50 per cent, delivering up to 2,000 megawatts of additional renewable energy,
enough to power 500,000 homes at peak demand;
– create up to 4,000 jobs across the life of the project and support many more
indirect jobs, providing an economic boost to the Snowy Mountains region;
and
– address the National Electricity Market’s need for large-scale storage and
improve the security and reliability of the system.
The Government has committed up to $1.38 bil ion in equity to support Snowy 2.0.
The balance is funded through a mix of debt and internal y generated cash flows.
The existing project scope is for first power delivery in mid-2025 with the estimated
cost of the project between $5.7 and $6.2 bil ion. The cost of necessary transmission
links is not included in this estimate.
There are almost 1,800 people currently working on Snowy 2.0.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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SNOWY HYDRO
Snowy 2.0 is subject to almost $100 mil ion in biodiversity and environmental
offsets, including two fish management programs to protect threatened species. Al
construction sites wil be rehabilitated post project completion.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 28
SNOWY HYDRO
ATTACHMENT A
SNOWY CEO REJECTS ‘ABSURD’ PROFITEERING CLAIMS AMID
ENERGY CRISIS
31 July 2022
Australian Financial Review
Claims that federal government-owned Snowy Hydro has in any way contributed to the energy
crunch gripping the eastern states and has been profiteering from it are “absurd”, said chief
executive Paul Broad in his first public statement since the escalation of the crisis in June.
Mr Broad said commentary that Snowy is to blame for the recent extreme high prices in the
National Electricity Market “misunderstand the cause of the energy crisis, as well as Snowy Hydro
and the nature of its generation assets”.
Snowy Hydro CEO Paul Broad says critics of the generator’s bidding behaviour don’t understand
the market.
Several analysts have pointed to Snowy being among generators that withdrew capacity from the
wholesale market when a cap of $300 a megawatt-hour was imposed in the wholesale market in
June, apparently contributing to the Australian Energy Market Operator eventually having to
suspend the NEM and seize direct control of generators to keep the lights on.
In an analysis of an AEMO quarterly report late last week, specialist online newsletter Renew
Economy concludes that Snowy was making “windfal profits” through its bidding behaviour in the
wholesale market and its withdrawal of capacity, and suggested money be returned to taxpayers.
But Mr Broad said Snowy’s operations were limited by the availability of water and it did not have
enough water to offset the “energy gap” from other electricity generators for extended periods.
“Snowy Hydro’s water resources must be carefully allocated to the highest value periods in order
to keep the lights on,” the company said in a statement released late Friday.
“In other words, hydro generation has a high opportunity cost.”
The stoush comes amid an ongoing crunch in electricity and gas supplies on the east coast, which
has kept wholesale prices elevated for several months, squeezed energy retailers and hammered
consumers through higher bills.
Wholesale power prices in the June quarter surged to a record of $264 a megawatt-hour across
the NEM, up by $177/MWh from the March quarter and more than double the previous record
high. Gas reached a record average of $28.40 a gigajoule, more than treble the average of the
same quarter in 2021.
A key driver of the shortage in supplies has been numerous outages at coal-fired power stations,
with outages peaking in June at 4.6 gigawatts, AEMO said. That drove up the need for gas for
electricity generation, with gas-fired generation jumping 27 per cent from a year earlier to its
highest for a June quarter since 2017.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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SNOWY HYDRO
AEMO’s report highlights a “marked shift” in the frequency that different generation technologies
set the marginal price for power in the June quarter, with coal power dropping and the biggest
increase coming from hydro generation. It said hydro set prices in 47 per cent of the pricing
intervals in the quarter, up from 34 per cent a year earlier, with almost all the increase due to
Snowy’s Tumut and Murray generators, which set the marginal price much more often than usual.
“The much greater role in marginal price setting played by hydro may reflect more flexible
‘opportunity cost’-based pricing of underlying water reserves whereas gas-fired generation offer
pricing is more constrained by actual fuel costs,” AEMO said.
Snowy’s Colongra gas-fired generator in NSW also ran at record levels in the June quarter, while its
Laverton and Valley Power gas plants in Victoria had their highest operations since 2007.
The gas plants are understood to have been affected more recently by AEMO’s crackdown on the
use of gas from the transmission system in Victoria as the market operator responds to a state
government request to take action to preserve minimum gas reserve levels. AEMO on July 20
ordered two gas plants to curtail operations to prevent a further run-down in gas storage levels at
the Iona underground plant in Victoria.
Credit Suisse energy analyst Saul Kavonic blamed Snowy “sucking gas off the spot market” as the
next biggest driver of the spike in east coast gas prices after the failure of retailer Weston Energy,
and suggested the company has “some responsibility .. to secure gas volumes rather than cause
these kinds of imbalances at short notice, resulting in gas shortages elsewhere”.
Snowy has declined to comment on its gas plants.
Meanwhile, AEMO ended the price cap of $40/GJ in the Victorian wholesale gas market that had
contributed to the run on spot gas in the state. It said the running cumulative price for gas had
fallen below the level that triggered the cap, which had been in place since May 30.
The latest development comes ahead of the next report by the competition watchdog into east
coast gas, which is expected to be used by the federal government as ammunition to tighten
regulation on the three Queensland LNG export projects.
Mr Kavonic said he anticipated the Australian Domestic Gas Security Mechanism, the policy tool
that al ows the government to control LNG exports, could be modified to include a trigger based
on price rather than volume, and to include a shorter notice requirement before it can be
imposed.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
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SNOWY HYDRO
ATTACHMENT B
SNOWY HYDRO’S ENERGY CRISIS RESPONSE
29 July 2022
As the energy crisis in the National Electricity Market (NEM) continues to unfold, Snowy Hydro is
being cal ed on more than ever to keep the lights on and prices down. Snowy’s role as the NEM’s
‘insurance policy’, providing on-demand energy generation during the crisis, has significantly
impacted our business and financial position.
CEO and Managing Director Paul Broad said Snowy Hydro strongly rejected commentary
suggesting it is to blame for recent high prices in the NEM.
“These comments misunderstand the cause of the energy crisis, as well as Snowy Hydro and the
nature of its generation assets,” he said.
Snowy Hydro is a relatively small supplier of energy owing to the fact that its principal source of
fuel (water) is limited. In most years Snowy Hydro supplies between 2-4% of the total energy
generated in the NEM, operating at critical times of peak demand and when there are unplanned
baseload outages.
The current crisis has arisen due to shortfal s from suppliers of bulk energy, including coal, wind
and solar. To help manage this shortfall, Snowy Hydro has operated its assets at record levels,
effectively as a baseload generator.
“To blame high prices on Snowy Hydro for stepping into the void left by bulk energy providers is
absurd,” Mr Broad said.
“Were it not for the actions of Snowy, prices would have been significantly higher. Our teams have
worked tirelessly and closely with AEMO, the market operator, throughout this chal enging period.
“In May this year, generation from the Snowy Scheme was almost double the previous monthly
record. This was essential for maintaining security of supply in the NEM, but it is not sustainable.
“Snowy’s ability to operate in this manner is constrained by its fuel scarcity - we don’t have
enough water to manage the ‘energy gap’ from other generators for extended periods,” Mr Broad
said.
Snowy Hydro’s water resources must be carefully allocated to the highest value periods in order to
keep the lights on. In other words, hydro generation has a high opportunity cost.
It is wrong to suggest that high prices could have been avoided, or that Snowy Hydro should have
offered its generation at lower prices. Doing so would have caused our hydro assets to be
dispatched ahead of other forms of generation with a cheaper cost of fuel. Not only would this not
have made economic sense, it would have left the company unable to respond to critical demand
peaks this winter and summer, further increasing the risk of blackouts.
The implication that Snowy Hydro enjoyed a financial windfal as a consequence of the crisis is also
inaccurate. Most energy dispatched in the NEM is pre-sold to customers under short or long-term
contracts. This is essential for stabilising the cash flow of generators and retailers and is part of the
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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SNOWY HYDRO
market design. It also means that a narrow focus on price outcomes in the NEM reveals little
about generator profitability.
The steps taken by Snowy Hydro to help keep the lights on - depleting its reserves of available
water - have in fact been detrimental to the company’s financial and risk position. Snowy Hydro
rejects any suggestion it has been ‘profiteering’ from the crisis, or has in any way exacerbated it.
Snowy Hydro wil remain focused on ensuring security of supply for the NEM during this
challenging period.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 28
SNOWY HYDRO
ATTACHMENT C
MEDIA RELEASE - LABOR WILL ENSURE CERTAINTY FOR KURRI
KURRI
1 February 2022
The Hon Anthony Albanese MP, The Hon Chris Bowen MP, Meryl Swanson MP
An Albanese Labor Government will ensure the future of the Kurri Kurri power station, and
provide more secure jobs for its workers. Labor welcomes any investment in the Hunter, and is
committed to affordable, reliable power. But Scott Morrison is risking taxpayers’ money on a gas
plant that experts say will become stranded in an increasingly renewable energy system.
The Government’s hand-picked Chair of the Energy Security Board said their gas plant “doesn’t
stack up, because it’s expensive power”.
That’s why Labor will work with Snowy Hydro Limited to ensure the power plant at Kurri Kurri can
transition to green hydrogen – guaranteeing a role for the station and its workers as well as
affordable and reliable power for decades to come.
In the first instance, a Labor Government would ask Snowy Hydro Limited to operate the plant on
30 per cent green hydrogen – a commitment which the current Government admits is possible but
will not make.
Labor would also ensure Snowy upgrades the plant to 100 per cent green hydrogen as soon as
possible. Upgrading the plant to green hydrogen this decade, in line with private sector projects,
will mean more secure jobs for its workers. Labor’s proposal wil ensure investment in the Hunter
– guaranteeing the region will power Australia well into the future.
A future green hydrogen plant would underwrite demand for the fuel in the Hunter, helping the
region to become a hydrogen hub for Australia and the world. A boost to green hydrogen demand
means a boost to renewables like solar and wind, which are needed to create green hydrogen.
There are existing proposals for green hydrogen production in the Hunter, and substantial space
for renewables at Snowy’s Kurri Kurri site.
And Labor’s proposal is consistent with net zero emissions by 2050, as well as our commitment to
43 per cent emissions reductions by 2030. Labor will work with Snowy Hydro Limited and experts
on the details of this commitment, and make an additional equity injection to deliver the final
project. This is the same approach adopted by the Government.
Labor will also work with Snowy on the mismanagement and delays that have already begun to
plague the project under the Morrison-Joyce Government. This investment is part of Labor’s
Powering Australia plan to create jobs, cut bills and reduce emissions.
Contact: s 22
Cleared by: Andrew Jaggers
Contact No: s 22
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 2/08/2022
PDR Number: QB22-000102
Date Last Printed: 12/08/2022 2:15 PM
Page
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FOI 22-57 Document 29
SUPERANNUATION
SUPERANNUATION SALARY - RENT FREE HOUSING
Issue
Why is the Government retrospectively removing the value of rent-free
housing from the calculation of default superannuation salary for
Commonwealth employees?
Headline Response
The Bill will ensure that the superannuation entitlements of
Commonwealth employees remain as they were understood, by
Commonwealth employees and employers, over a long period prior to
the commencement of a claim that is before the Federal Court.
Talking Points
• The Public Sector Salary Legislation Amendment Bil 2022 wil ensure that the
superannuation entitlements of Commonwealth employees remain as they
have been understood, by Commonwealth employees and employers, over a
long period.
• The Government has taken this step in response to a Federal Court case that
has exposed differing views on the operation of 5(e).
– Paragraph 5(e) of
the Superannuation (Salary) Regulations was
prospectively repealed from 1 March 2022 by the former Government.
• One interpretation of the Federal Court case could have widespread,
significant, unintended and inequitable financial ramifications for
Commonwealth employees and the Commonwealth, including:
– some Commonwealth employees could receive significant windfal
increases in superannuation benefits that are wel beyond community
standards (in some cases in the mil ions of dol ars) only because they have
received rent-free housing;
– a smal cohort of Commonwealth employees could incur large,
unexpected debts for unpaid member contributions in return for little or
no increase in their superannuation benefits; and
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
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SUPERANNUATION
– the Commonwealth could incur significant additional costs to meet
increased superannuation benefits and additional employer contributions.
• The Bil protects against these potential unintended outcomes and ensures that
the entitlements of Commonwealth employees remain fair and reasonable and,
importantly, that they continue to represent a responsible use of taxpayers’
money.
• The Bil retrospectively removes the value of rent-free housing from the
Superannuation (Salary) Regulations from 1 July 1986, being the date when the
operation of those Regulations could first have given rise to unintended
impacts.
– From 1 July 1986 the value of rent-free housing ceased being taxable
income of an employee with the introduction of the Fringe Benefits Tax.
• The Bil wil regularise the long-standing practice of employers and employees
and effectively restore the position with respect to rent-free housing that
existed before the claim being raised in the Federal Court.
• The retrospective repeal wil not apply to Commonwealth employees, if any,
with a default superannuation salary that explicitly included the value of rent-
free housing provided to them from 1 July 1986 to 28 February 2022, as
evidenced by contributions having been paid on that basis.
• Removing the value of rent-free housing from superannuation salary wil
ensure that the superannuation entitlements of current and former
Commonwealth employees remain fair and reasonable and represent a
responsible use of taxpayer’s money.
• If the value of rent-free housing was required to be included in superannuation
salary it would result in significantly different financial outcomes between
employees with otherwise similar circumstances. Such differences could range
from significant windfal gains to unexpected debts.
If asked whether the legislation wil apply to the applicants in the Peace case if they
are successful in their Federal Court case
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
• Yes the retrospective repeal of the value of rent-free housing from default
superannuation salary wil apply to the applicants in the Peace case if they are
successful with their legal claim.
• As evidenced by the Commonwealth defending the legal action, there was
never any intention that the value of rent-free housing be included in the
calculation of their superannuation salary.
If asked whether the Bil is constitutional y valid
• Based on the best legal advice it is considered that the Bil when enacted wil
be a valid law of the Commonwealth. The constitutional validity of a law is a
matter for the High Court.
Policy Commitments
• N/A
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
Background
Brendan Peace & Ors v Commonwealth of Australia & Anor
Three Department of Foreign Affairs and Trade employees are claiming that the
Commonwealth failed to make superannuation contributions in respect of the value
of housing provided to them during their overseas posting, as they al ege was
required by the former regulation 5(e) of the
Superannuation (CSS) Salary
Regulations 1978 (the Regulations).
Disagreements have arisen between Commonwealth employers and some
employees over whether accommodation provided in certain circumstances
constitutes rent-free housing within the meaning of the (former) Regulations and is,
therefore, superannuable.
Superannuation Salary in the Commonwealth Superannuation Schemes
The Regulations prescribe a ‘default’ superannuation salary for employees who are
members of the Commonwealth superannuation schemes. The ‘default’
superannuation salary includes certain recognised al owances including, until
1 March 2022, the value of rent-free use of housing (refer to Attachment A).
The
Superannuation (CSS) Salary Amendment (Housing Al owance and Rent-free
Housing) Regulations 2022 (Attachment B) removed the value of rent-free housing
(paragraph 5(e) of the
Superannuation (Salary) Regulations) from default
superannuation salary prospectively from 1 March 2022.
As the Bil wil retrospectively repeal paragraph 5(e) from 1 July 1986 this wil
override the initial, later repeal date of 1 March 2022.
The
Superannuation (Salary) Regulations over time have been renamed with their
current name being the
Superannuation (CSS) Salary Regulations 1978.
A copy of the Minister for Finance’s Media Release of 2 August 2022 announcing
that the Bil would be introduced on 3 August 2022 is at Attachment C.
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
ATTACHMENT A
EXTRACT FROM THE SUPERANNUATION (CSS) SALARY REGULATIONS 1978 –
former regulation 5(e)
Former regulation 5(e) – Rent-free Housing
• Each of the following kinds of al owance is a kind of al owance that is to be
treated as salary for the purposes of the Act:
(e) the rent-free use by an eligible employee of premises or quarters made
available to him by reason that he holds a particular office or performs
particular duties or work.
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
ATTACHMENT B
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
8 of
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FOI 22-57 Document 29
SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
9 of
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FOI 22-57 Document 29
SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
10 of
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SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
ATTACHMENT C
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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SUPERANNUATION
Contact: Neil Robertson
Cleared by: Scott Dil ey
Contact No: (02) 6215 2110
Contact No: (02) 6215 2811
Division: Governance
Cleared by Adviser:
Date Updated: 02/08/2022
PDR Number: QB22-000103
Date Last Printed: 12/08/2022 2:15 PM
Page
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WASTEFUL SPENDING
ELECTION COMMITMENT – AUDIT OF WASTEFUL SPENDING
Issue
This Government is committed to reducing waste and rorts.
Headline Response
The Government is undertaking an Audit of Wasteful Spending as a
priority for the October 2022-23 Budget, to repair the budget and
improve the quality of Commonwealth spending.
Talking Points
• The Audit of Wasteful Spending is a key priority of the Government.
• With the current economic and budget chal enges, it is vital to look at where
we can find opportunities to relieve some of these chal enges and work
towards repairing the budget.
– This means prioritising investments that achieve the maximum economic
benefit and expand the productive capacity of the economy so it can grow
faster than debt.
– It also means stopping wasteful spending that is not delivering the right
outcomes for the Australian people, and reprioritising this spending
towards more responsible and productive purposes.
• The Audit wil go through the Budget line by line and make sure that all
spending is backed by a strong business case and is as productive as possible in
delivering its intended outcomes.
• This wil involve making a tough set of decisions, to ensure that Government
spending is delivering better outcomes for the population and delivering an
economic benefit toward budget repair.
Contact: Hew Atkin
Cleared by: Cath Patterson
Contact No: (02) 6215 3038
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 07/07/2022
PDR Number: QB22-000104
Date Last Printed: 12/08/2022 2:16 PM
Page
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WASTEFUL SPENDING
Policy Commitments
• As part of
Labor’s Plan for a Better Future, the Government committed to an
audit of wasteful spending within the first year fol owing the election, to
identify opportunities to repair the budget and improve the quality of
Commonwealth spending. This audit is to be undertaken by Finance and the
Treasury.
• As part of
Labor’s Plan for a Better Future, the Government also committed to
reducing $350 mil ion of uncommitted funding in the Community Development
Grants Program and returning the $400 mil ion Regionalisation Fund to the
budget.
Contact: Hew Atkin
Cleared by: Cath Patterson
Contact No: (02) 6215 3038
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 07/07/2022
PDR Number: QB22-000104
Date Last Printed: 12/08/2022 2:16 PM
Page
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WASTEFUL SPENDING
Background
On 23 June 2022, the Prime Minister noted in an interview on the ABC 7.30 Report
that “the theme [of the first Budget] wil be one, getting rid of some of the waste
and the rorts that are in the Budget and secondly as wel , fulfil ing Labor’s
commitments that we made at the election”.
On 8 June 2022, in an interview on ABC News Breakfast, the Finance Minister
said “I'm working pretty hard every day on looking at spending, looking at spending
that's built into the Budget, looking at wasteful spending, getting rid of some of the
rorts that we've seen over the past decade that have real y been embedded and
ingrained into the Budget and we are looking right through it, line by line, where we
can real ocate, where there's spending that's not delivering the right outcome,
where we can reprioritise, where we ask agencies to have a look at programs they
don't think are working and where that spending can be real ocated.”
On 1 June 2022, the Treasurer noted in relation to the Audit that “the work has
begun with Treasury, and Finance and with Katy Gal agher” and that “the rorts and
waste audit wil be an opportunity for us to direct money from unproductive
political purposes into more productive economic purposes”.
On 29 May 2022, The Prime Minister noted in an interview with Sky News that “one
of the things that Jim and Katy have started on already, is the audit that wil be
conducted by Treasury and Finance” and that the audit would search for waste “line
by line”.
Contact: Hew Atkin
Cleared by: Cath Patterson
Contact No: (02) 6215 3038
Contact No: (02) 6215 2566
Division: Budget Policy and Coordination
Cleared by Adviser:
Date Updated: 07/07/2022
PDR Number: QB22-000104
Date Last Printed: 12/08/2022 2:16 PM
Page
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ANI
AUSTRALIAN NAVAL INFRASTRUCTURE (ANI) CURRENT ISSUES Issue
What is the role of Australian Naval Infrastructure Pty Ltd (ANI) now that
construction on the Attack Class Shipyard has been suspended?
Headline Response
ANI continues to facilitate the development and construction of new
surface ship infrastructure at the Osborne Precinct in Adelaide, and is in
the planning stages to deliver a large-vessel dry berth in Henderson, WA.
Talking Points
Osborne North
• Fol owing the AUKUS announcement, ANI completed the Combat System
Physical Integration Facility and other minor works, with the remainder of the
site works being discontinued, made safe and preserved for potential future
use.
• Together, ANI and the Commonwealth wil examine which parts of the
completed works can be repurposed for a nuclear-powered submarine
construction yard.
– A final decision on the location of the nuclear-powered submarine
construction yard will be made in due course.
• ANI has spent approximately $470 mil ion on the Future Submarine
Construction Yard.
• ANI has secured a lease over additional land in Adelaide to support a potential
site for the construction of nuclear-powered submarines, including land
adjacent to the existing Osborne North Shipyard.
– Funding wil be met from the existing resources of the Department of
Defence.
Contact: Sacha De Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 14/07/2022
PDR Number: QB22-000105
Date Last Printed: 12/08/2022 2:17 PM
Page
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ANI
Osborne South
• ANI is completing the modernisation of existing shipyard infrastructure
progressively through to 2023 and is prioritising further investment at
Osborne South to support sovereign naval shipbuilding.
• ANI has handed over new facilities at Osborne South to the tenant,
BAE Systems Maritime Australia (previously trading as ASC Shipbuilding), to
support the Hunter Class program.
Additional infrastructure at Henderson, WA
• ANI is working with the Department of Defence and the Western Australian
Government to progress planning for the delivery of Western Australia’s first
large-vessel dry berth.
• The new berth is expected to enable the construction and sustainment of large
naval vessels and support a strong commercial shipbuilding and sustainment
market in Western Australia.
Policy Commitments
• The Government has committed to the acquisition of nuclear-powered
submarines under the AUKUS trilateral security partnership.
• There is no plan to privatise ANI.
Contact: Sacha De Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 14/07/2022
PDR Number: QB22-000105
Date Last Printed: 12/08/2022 2:17 PM
Page
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ANI
Background
ANI establishment
ANI was established on 26 March 2017, fol owing the announcement of
11 October 2016 that the ASC Group would be structural y separated into three
separate companies.
ANI has been classified as a Public Non-financial Corporation by the
Australian Bureau of Statistics and was prescribed as a Government Business
Enterprise on 1 July 2017.
ANI holds shipbuilding and infrastructure assets at Osborne SA to support current
and future shipbuilding and submarine programs.
The development of the Osborne South Shipyard commenced in August 2017, and
of the Osborne North Shipyard for the Attack Class submarine in 2018.
The most recent Budget measure relating to ANI is at Attachment A.
AUKUS announcement
On 16 September 2021, the previous Government announced that Australia would
acquire at least eight nuclear-powered submarines drawing on decades of
experience from the US and UK.
Australia’s strategic environment has deteriorated more rapidly than anticipated at
the time of the
2016 Defence White Paper. As outlined in the
Defence Strategic
Update in July 2020:
• military modernisation is occurring at an unprecedented rate;
• capabilities are rapidly advancing and their reach expanding; and
• the technological edge enjoyed by Australia and our al ies is narrowing.
The Department of Defence has established a Nuclear-Powered Submarine
Taskforce to work closely with the UK and US over an 18 month period.
The Taskforce wil leverage technology, capability and design expertise from the UK
and US to identify the optimal pathway to deliver at least eight nuclear-powered
submarines for Australia.
Contact: Sacha De Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 14/07/2022
PDR Number: QB22-000105
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 31
ANI
ATTACHMENT A
2022-23 BUDGET
Page 41
Contact: Sacha De Re
Cleared by: Andrew Jaggers
Contact No: (02) 6215 2643
Contact No: (02) 6215 3853
Division: Commercial Investments Division
Cleared by Adviser:
Date Updated: 14/07/2022
PDR Number: QB22-000105
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 32
JUDGES PENSIONS
JUDGES PENSIONS' SCHEME
Issue
Wil the Government close the Judges’ Pensions Scheme to new federal
Judges?
Headline Response
The Government is managing a range of Budget pressures. We inherited
a budget with a tril ion dol ars of debt.
It is noted that there were no changes made to the Judges’ Pensions
Scheme by previous Governments.
The Government wil keep an open mind to al Budget pressures,
including those related to the Judges Pension Scheme.
Talking Points
• Not al federal Judges receive a defined benefit pension on retirement. For
example, lump sum benefits are general y payable to Judges in the Scheme
who have served less than six years, and to Division 2 Judges of the Federal
Circuit and Family Court on their retirement.
• I note that previous Governments did not legislate to close the Judges Pension
Scheme and that most of the States continue to provide defined benefit
pension schemes to their Judges.
• The Judges’ Pensions Scheme and the Governors-General Pension Scheme
remain the only government defined benefit superannuation schemes that
have not been closed to new members.
• In terms of cost, the two schemes are relatively smal compared to the other
government defined benefit schemes, which have been closed for over a
decade.
• We have inherited a budget under significant pressure, with deficits as far as
the eye can see and a tril ion dol ars of debt. We’ll be looking at any sensible
ideas for budget repair.
Contact: Scott Diley
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2811
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 15/07/2022
PDR Number: QB22-000106
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 32
JUDGES PENSIONS
Policy Commitments
N/A.
Contact: Scott Diley
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2811
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 15/07/2022
PDR Number: QB22-000106
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 32
JUDGES PENSIONS
Background
Media report
On 14 July 2022, The Sydney Morning Herald newspaper (Attachment A refers)
reported that the closure of the Judges’ Pension Scheme to new members would
save taxpayers $400 mil ion over the next decade with savings to ‘rapidly accelerate’
from 2031-32, based on a Parliamentary Budget Office (PBO) costing provided to
Senator Andrew Bragg.
• Questions about PBO costings should be directed to the PBO.
Judges Pensions Scheme
The
Judges’ Pension Act 1968 (the Act) provides access to a defined benefit pension
for Judges of the High Court, the Federal Court and Federal Circuit and Family Court
(FCFC) (Division 1). Judges of the FCFC (Division 2) are excluded.
The Act provides for a full defined benefit retirement pension payable to a Judge
who has attained age 60 and served at least ten years in a federal court. Under the
Scheme, a full retirement pension is determined as 60 per cent of the appropriate
judicial salary. Judicial salaries are determined from time to time by the
Remuneration Tribunal and published on their website.
• The current maximum retirement pension payable is $364,890 per annum for
former Chief Justices of the High Court, and is calculated at 60 per cent of the
current salary for a Chief Justice of the High Court ($608,150).
• In June 2022, the Remuneration Tribunal determined a 2.75 per cent increase
to judicial salaries, and fol owing the parliamentary disal owance period,
judicial pensions wil be increased accordingly to apply retrospectively from
1 July 2022.
Not al federal Judges receive a full pension on retirement. That is:
• a partial pension is payable for life from the Judges’ Pensions Scheme where
the Judge has only served at least six years (but less than 10 years) at the
mandatory retirement age of 70.
Contact: Scott Diley
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2811
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 15/07/2022
PDR Number: QB22-000106
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 32
JUDGES PENSIONS
• a lump sum benefit is payable from the Judges’ Pensions Scheme equal to the
Superannuation Guarantee (currently 10.5 per cent of salary) plus interest for
Judges who serve less than six years.
• Judges of the FCFC (Division 2) are general y entitled to defined contribution
superannuation benefits under a separate Act, the
Federal Circuit Court and
Family Court of Australia Act 2021– a lump sum benefit is generally payable
equal to 15.4% of salary accumulated with interest.
The Judges’ Pensions Scheme and the Governors-General Pension Scheme remain
the only government defined benefit superannuation schemes open to new
members.
• The Parliamentary Contributory Superannuation Scheme, a defined benefit
pension scheme, was closed to Parliamentarians who joined the Parliament on
or after 9 October 2004.
• The last defined benefit superannuation scheme for public servants was closed
around 17 years ago. The Commonwealth Superannuation Scheme (CSS) closed
on 30 June 1990. The Public Sector Superannuation Scheme (PSS) closed on
30 June 2005.
Except for Tasmania, the States and Territories provide defined benefit
superannuation entitlements to the Judges. In 1999, Tasmania closed its defined
benefit scheme to new Judges and commenced providing the Superannuation
Guarantee benefit under a defined contribution scheme to Judges who commenced
from that time.
Contact: Scott Diley
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2811
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 15/07/2022
PDR Number: QB22-000106
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 32
JUDGES PENSIONS
ATTACHMENT A
The Sydney Morning Herald
Thursday 14th July 2022
Page 13 | Section: News
Contact: Scott Diley
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 2811
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 15/07/2022
PDR Number: QB22-000106
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 33
MOP(S) DEMOGRAPHICS
DEMOGRAPHIC DATA FOR MOP(S) ACT EMPLOYEES Issue
What is the Government doing to ensure it can report on demographic
and diversity characteristics of MOP(S) Act employees?
Headline Response
The Government has updated employment documentation forms to
ensure MOP(S) Act employees can voluntarily provide additional
demographic and diversity data.
Talking Points
• MOP(S) Act employees can voluntarily provide demographic and diversity data
when they commence employment through the Employee’s Personal
Particulars form submitted to the Department of Finance.
• The Employee’s Personal Particulars form was updated in June 2022 to expand
the number of demographic and diversity questions.
• Any information provided by MOP(S) Act employees is handled in accordance
with the Department of Finance’s privacy policy. In particular, employing
parliamentarians do not have access to this information.
Policy Commitments
• N/A.
Contact: Jilian Flinders
Cleared by: David De Silva
Contact No: (02) 6215 2052
Contact No: (02) 6215 3978
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 22/07/2022
PDR Number: QB22-000107
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 33
MOP(S) DEMOGRAPHICS
Background
The Set the Standard Report made a number of recommendations relating to
improving the diversity of the MOP(S) Act employee workforce with associated
monitoring and evaluation (refer Recommendations 6, 7 and 19). In particular,
Recommendation 7 recommends:
The Office of Parliamentarian Staffing and Culture, together with the
Department of the Senate and Department of the House of Representatives,
should table an annual report to the Parliament with the fol owing
information:…
(b) diversity characteristics of Members of Parliament (Staff) Act employees,
including analysis by party affiliation (where applicable), role, classification
and pay scale (Office of Parliamentarian Staffing and Culture).
So that the OPSC is able to implement this recommendation once established,
Finance has commenced col ecting additional personal information about MOP(S)
employees through an update to its Employee’s Personal Particulars form.
To ensure that Finance met its privacy obligations, a Privacy Impact Assessment
(PIA) was undertaken to identify any privacy issues that need to be addressed. The
PIA did not identify any significant risks to Finance’s approach, but made minor
recommendations to help Finance meet best practice in the handling of sensitive
information. These recommendations were taken into consideration when making
changes to the Employee Personal Particulars form.
Contact: Jilian Flinders
Cleared by: David De Silva
Contact No: (02) 6215 2052
Contact No: (02) 6215 3978
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 22/07/2022
PDR Number: QB22-000107
Date Last Printed: 12/08/2022 2:17 PM
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FOI 22-57 Document 34
PARLIAMENTARIANS’ REMUNERATION
PARLIAMENTARIANS’ REMUNERATION
Issue
Why has there been a salary increase for parliamentarians?
Headline Response
Parliamentarians’ remuneration, including base salary, is determined by
the independent Remuneration Tribunal.
Talking Points
• The Remuneration Tribunal is an independent statutory authority and is
responsible for determining remuneration for certain public offices, including
parliamentarians.
• As Senators will be aware there has been no increase to parliamentarians’
salary since 1 July 2019.
• A freeze during the onset of COVID in 2020 received bi-partisan support and
continued to maintain remuneration levels with no increase.
• On 14 June 2022, the Tribunal released a statement advising that it had
decided to increase remuneration by 2.75 per cent for public offices in its
jurisdiction, including:
– Federal parliamentarians
– Judicial and non-judicial offices of federal courts and tribunals
– Secretaries of departments
– Full-time and part-time holders of various public offices
– Principal executive offices.
• Detailed reasons for the decision are published on the Tribunal’s website.
• Any questions in relation to parliamentarians’ remuneration should be directed
to the Tribunal.
Contact: s 22
Cleared by: Dean Edwards
Contact No: s 22
Contact No: (02) 6215 2250
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 26/07/2022
PDR Number: QB22-000109
Date Last Printed: 12/08/2022 2:18 PM
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FOI 22-57 Document 34
PARLIAMENTARIANS’ REMUNERATION
Policy Commitments
• N/A.
Contact: s 22
Cleared by: Dean Edwards
Contact No: s 22
Contact No: (02) 6215 2250
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 26/07/2022
PDR Number: QB22-000109
Date Last Printed: 12/08/2022 2:18 PM
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FOI 22-57 Document 34
PARLIAMENTARIANS’ REMUNERATION
Background
Part 2 of the
Parliamentary Business Resources Act 2017 (the PBR Act) provides for
remuneration for a parliamentarian to be paid as determined by the Remuneration
Tribunal (the Tribunal). The remuneration must include a base salary and may
include several other components, including additional salary for an office holder.
Subsection 47(6) of the PBR Act requires the Tribunal to notify its reasons for each
determination made in relation to parliamentarians to the Special Minister of State
and to publish those reasons on its website.
On 14 June 2022, the Tribunal published advice that
Remuneration Tribunal
(Members of Parliament) Determination 2022 (the Determination) had been made,
which sets out remuneration and al owance provisions for current and former
parliamentarians.
The Determination increased base salary to be paid to a parliamentarian by 2.75 per
cent to $217,060 per annum from 1 July 2022.
The Determination makes a corresponding change to the portion of base salary that
is not parliamentary al owance for the purposes of the
Parliamentary Contributory
Superannuation Act 1948, by increasing it by 2.75 per cent to $45,320.
The Tribunal noted, in its statement on its decision, that there had been no increase
in remuneration for public offices, including parliamentarians, since 1 July 2019.
The Tribunal is an independent statutory authority established under the
Remuneration Tribunal Act 1973.
Contact: s 22
Cleared by: Dean Edwards
Contact No: s 22
Contact No: (02) 6215 2250
Division: Ministerial and Parliamentary Services
Cleared by Adviser:
Date Updated: 26/07/2022
PDR Number: QB22-000109
Date Last Printed: 12/08/2022 2:18 PM
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FOI 22-57 Document 35
NZ CITIZENS VOTING
NEW ZEALAND CITIZENS VOTING IN AUSTRALIAN ELECTIONS
Issue
The PM recently announced considering voting rights for NZ citizens
based in Australia.
Headline Response
JSCEM wil be asked to consider voting matters relating to NZ temporary
residents in Australia
Talking Points
• It was wonderful to see the New Zealand Prime Minister, Jacinda Ardern, visit
Australia in July 2022 and I look forward to the positive and engaged
relationship our nations wil share under an Albanese Government.
• We know New Zealand citizens participate in our society and contribute to
our economy as residents in Australia.
• Prime Minister Albanese identified that there have been a range of issues
raised relating to citizenship.
• One of these issues is voting rights and fol owing establishment of the Joint
Standing Committee on Electoral Matters (JSCEM), this Government wil ask
the Committee to review these matters.
• Senators wil know after each federal election, JSCEM holds an inquiry into al
aspects of the conduct of the election.
• Members of the public can make submissions on any aspect related to the
federal election, and of course interested members and Senators are
welcome to submit their views to the Committee when it is established.
• The Government considers any recommendations made by JSCEM fol owing
its inquiries.
Policy Commitments
N/A
Contact: Sebastian Powney
Cleared by: Nathan Wil iamson
Contact No: (02) 6215 1603
Contact No: (02) 6215 2668
Division: Governance
Cleared by Adviser:
Date Updated: 27/07/2022
PDR Number: QB22-000110
Date Last Printed: 12/08/2022 2:18 PM
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