Key activities and achievements

Key activities and achievements for 2016–17, include:

Delivering the Budget and Mid-Year Economic and Fiscal Outlook

During the development of the 2017–18 Budget, Finance:

• provided advice on spending and savings proposals and prepared over 140 briefs for the Expenditure Review Committee of Cabinet to assist its policy deliberations
• scrutinised cost estimates for spending and savings proposals. Finance considered approximately 900 policy costings across all Commonwealth portfolios for accuracy and overall alignment with the policy’s intent and collaborated with portfolio agencies to validate 8,757 estimates adjustments entered in the Central Budget Management System
• coordinated key aspects of the Budget process and administered the Budget Process Operational Rules
• prepared Budget documentation, including:
  • Statement 6 of Budget Paper No. 1, which details how the government intends to allocate $464.3 billion of expenditure across the various functions of government for the 2017–18 to 2020–21 years
  • Statement 9 of Budget Paper No. 1 in relation to fiscal risks, assets and liabilities, contingent assets and liabilities, and government loans that may influence the actual budget outcome
  • Statement 10 of Budget Paper No. 1, which provides the Australian Government financial statements
  • 226 new expense, capital and non-tax revenue measures included in Budget Paper No. 2
  • Budget Paper No. 4, which contains information on resourcing for government agencies in 2017–18.

For the 2016–17 Mid-Year Economic and Fiscal Outlook, Finance analysed and advised on 175 expense, capital and non-tax revenue measures and prepared a range of documentation, including information on the Australian Government financial statements and an update to fiscal risks and contingent liabilities and assets since the 2016–17 Budget.

Delivering the government’s fiscal and budget strategies

Finance provides support to the government to enable it to achieve its fiscal and budget policy objectives.

In collaboration with the Treasury, the Department of the Prime Minister and Cabinet and other agencies, Finance provided advice on proposals across a number of portfolios aimed at improving productivity in the economy and workforce participation.

Finance provided advice on major reforms, including the schools funding package, housing affordability measures, working-age payments reform, and investment in infrastructure, regional Australia and energy security. We also supported the government in delivering on its budget repair strategy by advising on savings proposals and the progress of budget-related legislation through the parliament.

Investment in infrastructure and regional Australia

In collaboration with other central agencies and the Department of Infrastructure and Regional Development, Finance advised the government on the significant infrastructure investments announced in the 2017–18 Budget. These included an equity investment of up to $5.3 billion in WSA Co Limited to build Western Sydney Airport, an additional equity investment of $8.4 billion in the Australian Rail Track Corporation for the delivery of the Melbourne–Brisbane inland freight rail project, and funding of $600 million over two years from 2019–20 as part of a $10 billion National Rail Program.

We advised the government on a number of 2017–18 Budget measures that will help to support economic growth in regional Australia. These included funding of $472.2 million over four years from 2017–18 to establish a Regional Growth Fund, with the aim of creating jobs, stimulating economic growth and building stronger regional communities.

We are also working with the Department of Infrastructure and Regional Development on prioritising the decentralisation of non-policy Commonwealth entities to further promote economic diversification and bring skills and job opportunities to regional areas.

Inland rail market testing

Following the government’s 3 May 2016 announcement of its intention to deliver an inland freight rail network through the Australian Rail Track Corporation, Finance engaged in a two-stage market testing process to examine opportunities for optimising private sector involvement in delivering and financing inland rail. Following successful completion of the market testing, as part of the 2017–18 Budget, the government announced a contribution of $8.4 billion in new equity for ARTC to deliver inland rail and the intention to pursue a public–private partnership for the Gowrie to Kagaru (Queensland) section of the project.

Advice on Western Sydney Airport

Finance worked closely with the Department of Infrastructure and Regional Development to provide advice to the government on options for development and construction of the Western Sydney Airport. On 2 May 2017 the government announced it would establish WSA Co Limited as a Commonwealth company, prescribed as a government business enterprise, to build and develop the airport. Finance will continue to work with the Department of Infrastructure and Regional Development on the establishment of the company in early 2017–18 and will have an ongoing role supporting the Minister for Finance as a joint shareholder in WSA Co.

Online guidance for directors of government business enterprises

Finance prepared online guidance material to assist directors of government business enterprises—in particular, newly appointed directors.

The guide, which is available on our website provides information about the central components of the GBE governance framework, including the Public Governance Performance and Accountability Act 2013, the PGPA Rules, and the Resource Management Guide No. 126—Commonwealth GBE governance and oversight guidelines. It also provides a ‘shareholder perspective on the director’s role’.

The guide takes account of existing policy, legislation and industry best practice and was developed in consultation with GBEs and shareholder departments to complement existing induction programs.

Sydney’s new freight terminal at Moorebank

Moorebank Intermodal Company achieved financial close on 24 January 2017, a milestone that allowed the construction of Moorebank Logistics Park to begin. The park will improve national freight connectivity and help relieve urban congestion. The initial phase of the import–export terminal is expected to be operational by January 2019, and the initial phase of the interstate terminal is expected to be operational by January 2021. Warehousing will be developed as demand dictates.

Funds allocated for modernising the public service

Finance worked with entities to identify and recommend to government, transformation initiatives for investment through the $500 million Public Service Modernisation Fund. These initiatives were announced in the 2017–18 Budget, with funding allocated over three years.

Finance led the development of a framework whereby proposals were assessed to ensure that the funding was invested in those initiatives that will enhance productivity and innovation in the Commonwealth public sector.

Whole-of-government digital records management

During 2016–17 Finance secured funding under the Public Service Modernisation Fund for the development of a whole-of-government Digital Records Platform to automate the common task of digital records management. We also completed the first draft of the Australian Government Records Interoperability Framework, which will enable the automation of records capture and management. A study titled the ‘Future state of Australian government records management’ was also completed. The study investigated the technologies and business issues that will affect records management in the coming five to 10 years.

The Central Advertising System

Finance administers the Central Advertising System, which consolidates the government’s buying power to support the proper use of public resources. A total of $148.4 million was spent on media through the system in 2016–17:

• Total campaign advertising media expenditure was $133.4 million, comprising $100.1 million by non-corporate Commonwealth entities and $33.3 million by corporate Commonwealth entities, Commonwealth companies and other bodies.
• Total non-campaign advertising media expenditure was $15 million, comprising $12.1 million by non-corporate Commonwealth entities and $2.9 million by corporate Commonwealth entities, Commonwealth companies and other bodies.

Drawdowns from the Future Fund

During the reporting year and in the lead-up to the 2016–17 Budget, Finance and Treasury provided advice to government on options for commencing drawdowns from the Future Fund to meet unfunded superannuation liabilities. During the same period, the two departments also provided advice to government about the ongoing relevance of the Future Fund Investment Mandate. During the budget process, the government announced that drawdowns from the Future Fund will not begin in 2020–21 and the investment mandate will be reduced by 0.5 per cent to a target return of at least the consumer price index plus 4 to 5 per cent over the long term.

Establishing Australian Naval Infrastructure

Following a government announcement in October 2016, Finance worked with the Department of Defence and ASC Pty Ltd to establish Australian Naval Infrastructure Pty Ltd and transfer critical naval shipbuilding infrastructure from ASC into ANI. Establishment of ANI will facilitate the development and construction of infrastructure at the Osborne shipbuilding facility in South Australia to support the government’s continuous shipbuilding program.

The Efficiency through Contestability Program

Under the Efficiency through Contestability Program Finance has systematically reviewed Commonwealth public sector activities and assessed whether these functions align with key policies and priorities. The aim is to ensure that government administration is as efficient, effective and responsive as possible. In 2016–17 we supported the delivery of a further eight reviews to government. Through streamlining programs, terminating legacy programs and improving spans of control, systems and compliance processes, reviews under the program have resulted in savings of about $5 billion from 2014–15 to 2020–21, with about a further $14 billion estimated for 2021–22 to 2026–27.

Streamlining government grants

Each year the Australian Government awards $25 billion in grants to achieve government policy outcomes that support the nation’s jobs, growth and innovation. As part of leading the government’s Australian Public Service transformation agenda, Finance is working to improve the Commonwealth grants framework by streamlining grant policy and processes.

This is assisting Commonwealth entities to administer grants through simpler, consistent, more efficient processes. The work involves creation of a single source of government grant opportunities, GrantConnect, and the establishment of two grants administration hubs (Community and Business Grants) as centres of excellence. These changes are delivering consistent processes and approaches across common IT platforms.

The Community and Business Grants hubs officially began operations on 1 July 2016. The hubs improve usability and accessibility through online grant processes for grant applicants and reduce red tape for grantees.

In February 2017 the government launched GrantConnect as the new single point of discovery for information about all government grants. Individuals and organisations are able to register to receive notifications on grant opportunities relevant to them. Information about grant opportunities is presented in a standard and consistent format.

In consultation with government and non-government stakeholders, we have also developed standardised grant agreement and guidelines templates. It is planned that these will be rolled out for use throughout government in 2017–18. The reforms standardise the way government presents grant information to potential applicants and reduce costs for grantees.

Maintaining average staffing levels

During 2016–17 Finance supported the government in meeting its commitment to maintain the average staffing levels (ASLs) of the general government sector (excluding military and reserves) at about or below 2006–07 levels (167,596 ASL). This work is contributing to broader efforts in line with the government’s agenda to create and support a smaller, smarter, and more productive and sustainable government sector.

Shared Services Program

The Shared Services Program is a whole-of-government initiative focused on improving the efficiency and sustainability of corporate services throughout the Australian Public Service. In time, through the scale and standardisation of business systems and processes, the program aims to free up agency resources to focus on core government priorities. Significant progress was made in 2016–17, including:

• starting work on standardising business systems and processes in the Australian Public Service by consolidating corporate service provision from 85 internal service providers (including agencies that provide services to themselves) into six hubs
• 14 agencies (including those housing six hubs) representing approximately 61,000 ASL transitioning to a shared services hub. An additional 60 agencies are due to transition to a hub during the coming four years
• 70 agencies participating in the annual benchmarking exercise, equating to 86 per cent of Australian Public Service in-scope ASL (excluding the Department of Defence and the Australian Security Intelligence Organisation).

A new directory website

Release of a new Directory website on 30 June 2017 consolidated three databases managed by Finance (the Australian Government Organisations Register, AusGovBoards and Directory.gov), completing implementation of a recommendation from the independent Review of Whole-of-Government Internal Regulation (the Belcher red tape review).

The new website combined the core information from the separate databases to establish a single source of information about government entities and appointments. This information is held in the Organisations and Appointments Register hosted on an off-the-shelf product. It is presented on the directory website. Among the benefits of the website are a reduction in duplication; information that is more transparent, accurate and timely; portfolios being able to consolidate and streamline their operational areas; and easier reporting being available to stakeholders.

The core information has the potential to be used by other government and non-government users who currently maintain separate lists of government organisations.

Property divestment

Ninety-two property sales were completed under the government’s surplus property divestment program up until 2016–17. The sales returned approximately $36 million in gross proceeds to consolidated revenue and achieved savings in property management costs. Most of the sales involved properties previously held by the former Albury–Wodonga Development Corporation and rural blocks located along the NSW–ACT border.

More government entities signing up to govCMS

Finance’s whole-of-government content management system and website hosting service, govCMS, has now exceeded projected uptake targets: 57 agencies have signed up and there are 155 live websites. The project has been successful because of its community-led governance model. In addition to infrastructure and hosting, govCMS provides a fully managed platform that allows entities to procure complete packages of services for maintaining, building, supporting and protecting their websites.

Comcover Risk Management Education Program

A key function of Comcover is to provide risk management and education services to Commonwealth entities to support best practice risk management across the government. One activity contributing to the achievement of this function is the development and delivery of effective risk management training. Comcover provides a comprehensive risk management education program which adopts a blended learning approach that targets four levels of risk management capability: foundation, generalist, specialist and executive.

The foundation, generalist and executive pathways are well established and evaluation of the programs indicates they are improving participants’ risk management capability in a practical way, contributing to the development of a positive risk culture throughout the general government sector.

Programs were delivered in 2016–17 with 2,117 participants from more than 70 entities participating in one or more of the programs. The specialist pathway will focus on those officials who are responsible for implementing and embedding an entity’s risk framework and building their entity’s capability to effectively manage risk. This pathway will be launched in the first quarter of 2018.

Campaign advertising policy framework

During 2016–17 Finance provided over 100 briefs to the Special Minister of State in connection with his government advertising policy responsibilities. Briefings related to advertising policy issues, media sector developments, and a range of advertising campaigns developed by non-corporate Commonwealth entities.

Whole-of-government property services

During 2016–17 Finance progressed the establishment of whole-of-government coordinated procurement arrangements in relation to property services. Under these arrangements Deloitte Touche Tohmatsu was appointed as the initial strategic property adviser on 10 February 2017. By 30 June 2017 the tender process for appointing property service providers for leasing and facilities management services was well advanced.

Whole-of-government travel, stationery and office supplies

Finance approached the market in December 2016 for replacement arrangements for whole-of-government travel accommodation services and for stationery and office supplies.

Both processes are now complete: the new arrangement for accommodation came into effect on 1 October 2017; the new stationery and office supplies panel commenced on 7 September 2017. Both arrangements will continue to deliver savings and efficiencies for Australian Government entities.

Free trade negotiations

Finance supported the Department of Foreign Affairs and Trade in negotiating Australia’s ongoing bid to join the ‘World Trade Organization Agreement on Government Procurement’ and in the ‘Review of the Singapore Australia Free Trade Agreement’.

Superannuation reforms

During the reporting year Finance engaged in administrative work to implement the government’s superannuation reforms applying from 1 July 2017 in connection with the pension schemes for certain former parliamentarians, judges and governors-general. As part of this, we provided information and advice to members of these schemes.

2016 election support

The federal election on 2 July 2016 generated an increased workload for Finance. After the election, 53 new senators and members were given work expenses induction briefings and advice, as well as support in establishing offices and employing staff. Assistance was also provided to all other parliamentarians, including those departing through resignation or loss of office.

COMCAR services and the 2016–17 VIP Visits Program

COMCAR’s involvement in the government’s VIP Visits Program increased considerably during 2016–17. Forty-four visiting guests of government and other official visitors were provided services by COMCAR during the year (up from 27 in 2015–16). This figure included six heads of government and six heads of state travelling as part of Australia’s official visits program. Among official visitors were the Prime Minister of Singapore, the King and Queen of the Netherlands, the King and Queen of the Hashemite Kingdom of Jordan, the Prime Minister of Israel, the President of the Islamic Republic of Afghanistan and the Premier of the People’s Republic of China.

In such a busy period COMCAR delivered seamless transportation services to all visitors, while maintaining its high-quality service nationally for other clients.

Preparing for the Parliamentary Entitlements Legislation Amendment Act

On 22 February 2017 the Parliamentary Entitlements Legislation Amendment Act 2017 commenced. The Act brought to an end Life Gold Pass travel for all Life Gold Pass holders other than retired former prime ministers and their spouses or de facto partners. It reduced the Gold Pass travel provided to retired former prime ministers and their spouses or de facto partners to 30 and 20 domestic return trips per year respectively and introduced a requirement that all parliamentary retirement travel be for the public benefit. Additionally, the Act reduced the age of a ‘dependent child’ under the Parliamentary Entitlements Act 1990 to less than 18 years, imposed a 25 per cent penalty loading on prescribed travel claims that require subsequent adjustment, and established a statutory basis for recovering overpayments of parliamentary work expenses.

Establishing the Independent Parliamentary Expenses Authority

Following the government’s announcement in January 2017 that an independent authority was to be set up to administer and oversee the work expenses of parliamentarians, a taskforce was created within Finance. The role of the taskforce was to establish the Independent Parliamentary Expenses Authority, first as an Executive Agency under the Public Service Act 1999 on 3 April 2017 and then as a statutory authority under the Independent Parliamentary Expenses Authority Act 2017, from 1 July 2017.

The taskforce—in collaboration with other areas in Finance—successfully delivered this complex project within an ambitious six-month timeframe. Legislation was drafted and passed by the parliament within one month of the government’s announcement and two Machinery of Government changes were implemented within six months.

Operation Tetris

During 2016–17 all substantive vacant Commonwealth leased space in Canberra was filled under the government’s Operation Tetris program. Operation Tetris is on track to realise savings of $300 million over 10 years nationally. In future, Tetris opportunities will be identified well in advance by the whole-of-government leasing strategy which Finance’s strategic property adviser is developing.