Department of The Environment and Heritage Annual Report 2004 - 2005, Part 1

Department of the
Environment and Heritage

www.deh.gov.au
The lead agency for carrying out the Australian Government’s policies on the
environment, heritage and Antarctica
Vision
A sustainable Australia
Mission
Deliver the Australian Government’s environment and heritage
legislation, policies and programmes
Main office at the John Gorton Building

Photo: A Mostead
How to contact the department

Main office: John Gorton Building Post: GPO Box 787 Phone: 02 6274 1111
King Edward Terrace Canberra ACT 2601 Facsimile: 02 6274 1666
Parkes ACT 2600 Internet: www.deh.gov.au
i
Senator the Hon Ian Campbell
Minister for the Environment and Heritage
Parliament House
CANBERRA ACT 2600
Dear Minister
I present the annual reports of the Department of the Environment and Heritage for
the financial year ended 30 June 2005. This set of reports comprises two volumes:
• First, the annual report of the department prepared in accordance with
subsection 63(2) of the Public Service Act 1999. Subsection 63(1) of that Act
requires me to give you the report for presentation to the parliament. A copy
of this annual report must be laid before each House of the parliament on or
before 31 October 2005.
• Secondly, seven annual reports about Acts the department administers. This
volume must be tabled in each House of the parliament within 15 sitting days
after the day on which you receive it.
Yours sincerely
David Borthwick
Secretary
20 October 2005
ii Department of the Environment and Heritage Annual Report 2004–05

Contents
Executive summary ...................................................................................................................... 1
Secretary’s review .................................................................................................................................. 2
Summary of main results .................................................................................................................... 5
Organisation ............................................................................................................................................ 8
Role and functions ................................................................................................................................ 8
Outcomes and outputs ..................................................................................................................... 10
Total resources..................................................................................................................................... 11
Environment—Outcome 1 .................................................................................................. 13
Climate change .................................................................................................................................... 14
Air pollution.......................................................................................................................................... 32
Biodiversity and wildlife .................................................................................................................. 44
Coasts and oceans .............................................................................................................................. 61
Assessments and approvals ............................................................................................................ 84
Heritage .................................................................................................................................................. 90
Human settlements and industry ............................................................................................... 105
Inland waters ...................................................................................................................................... 128
Land ....................................................................................................................................................... 140
Parks and reserves ........................................................................................................................... 150
Cross-cutting environmental work ............................................................................................ 158
Antarctica—Outcome 2 ....................................................................................................... 169
Managing the department .................................................................................................. 193
Environmental impacts .................................................................................................................. 194
Stakeholder relations ...................................................................................................................... 200
External scrutiny ............................................................................................................................... 204
Corporate governance .................................................................................................................... 208
Workforce ............................................................................................................................................ 215
Finances................................................................................................................................................ 234
Financial statements ................................................................................................................ 255
Department of the Environment and Heritage ..................................................................... 256
Australian Greenhouse Office ..................................................................................................... 334
National Oceans Office .................................................................................................................. 384
Glossary............................................................................................................................................. 423
Indexes .............................................................................................................................................. 431
Compliance index ............................................................................................................................ 432
Alphabetical index ........................................................................................................................... 438
iii
iv Department of the Environment and Heritage Annual Report 2004–05
Executive summary
Executive summary
Secretary’s review
This is the first full financial year that I have led the
Department of the Environment and Heritage. For me
the clear ‘take home message’ of the past year is the
need for a sustained effort to follow through on the
government’s major environmental reforms.
Environmental degradation is often an insidious process;
the cumulative result of multiple causes, each appearing
insignificant in the initial stages and when viewed in
isolation. The damage can escalate until it reaches
the point where it affects entire ecosystems, and an
enormous effort is required to prevent further harm.
David Borthwick
There are no quick solutions to continental-scale
problems like the over-allocation of water resources and
the loss of native vegetation, or global problems like greenhouse gas emissions.
It will take years of consistent hard work on many fronts before improvements
become noticeable.
Strong foundations
The government has established strong foundations for this work. Major
environmental programmes like the Natural Heritage Trust, the implementation
of the Environment Protection and Biodiversity Conservation Act 1999, and
regional marine planning are driving important reforms to the way Australians
manage natural resources. For the first time the continuing health of ecosystems is
fundamental to resource management, and not just a secondary consideration. In
addition the high level of protection afforded by the Environment Protection and
Biodiversity Conservation Act 1999 now applies to places of outstanding national
heritage significance. The total government investment in the environment and
heritage continues to increase.
Progress report
The department can report progress in carrying out this work (see the summary
on pages 6–7). Support for ‘on-ground’ activities continues to expand, including
$200 million for water-saving projects initiated by the community. More native
habitat is being protected, notably an additional 171 300 hectares of forest reserves
in Tasmania. New programmes to address climate change have been established
and Australia is still on track to meet its internationally agreed greenhouse gas
emissions target.
2 Department of the Environment and Heritage Annual Report 2004–05

Executive summary
During the year real progress was made in international diplomatic efforts to
develop practical solutions to the problem of climate change, culminating in the
July 2005 announcement of a partnership between the United States, China, India,
Japan, South Korea and Australia. Australia also had a success with its diplomatic
effort to oppose commercial whaling. International engagement on issues like
climate change and whaling will continue to be priorities in the year ahead.
However many of the department’s activities, although fundamental to solving
environmental problems in the long term, typically make only incremental
improvements to the overall condition of the environment in any given year.
Activities like managing the Natural Heritage Trust, improving the management
of major river basins and administering legislation covering a wide range of
environmental issues (including ozone depletion, wildlife protection and sea
dumping, to name a few) have to be viewed in context. It will take many years of
sustained effort over the entire catchment-to-sea continuum before the department
can report major environmental outcomes from these activities.
Moreover, it is simply not feasible to monitor many key indicators of change in
the condition of the environment on an annual basis. This is why the department
produces Australia’s State of the Environment reports—independent stocktakes of
the condition of our environment—on a five-yearly cycle, with the next report due
in 2006.
Other departmental activities—corporate support functions like providing
assistance to the minister, maintaining our buildings and our records, and
managing the department’s accounts—tend not to make it onto lists like the one on
pages 6–7 but are absolutely essential to the department’s ability to achieve these
results. I encourage readers to explore the relevant chapters of this annual report to
find out more about what was achieved.
The tsunami
In looking back over the year a single event overshadowed all others: the Boxing
Day tsunami in the Indian Ocean. Like other Australians I was appalled by the
scale of the human tragedy. The tsunami was also the single most significant
event affecting the environment in Australia’s region so it was important that the
environment and heritage portfolio contributed to the Australian Government’s
response. The portfolio’s contribution included assistance from the Great Barrier
Reef Marine Park Authority, involving assessing the impacts on coral reefs. The
Bureau of Meteorology is helping to establish an early warning system for future
tsunamis in the Indian Ocean.
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Executive summary
Changes to the portfolio

The year saw a significant change to the portfolio, with the government bringing
the Australian Greenhouse Office and the National Oceans Office into the
department (they were previously separate executive agencies in the portfolio).
This kind of transition can be trying for employees as well as for our clients, so
I was particularly pleased with the way everyone adapted to the new working
arrangements. Both offices are continuing to operate within the department,
enabling a more integrated approach to delivering the government’s climate
change and marine programmes.
There was also a shift in the way government works with Indigenous communities,
with Indigenous programmes now distributed across a range of portfolios.
The department already has a strong record of engagement with Indigenous
communities on park management, natural resource management, heritage
protection and marine planning. New whole-of-government coordination
arrangements will enhance the ability of these programmes to meet local and
regional needs.
More support for staff

I am of the strong view that the department’s success in delivering the
government’s programmes rests on the quality and dedication of its staff. Following
on from last year’s comprehensive staff survey, the department is making a number
of changes to improve support for its staff.
The department’s senior executives are leading a concerted effort to improve
internal communications. For example I have made a point of meeting regularly
with the department’s section managers. The department’s intranet is being
improved; innovations during the year included a regular staff newsletter and a
feedback mechanism.
This year also saw a major information technology review and upgrade. New
systems will roll out over 2005–06. Other improvements include new recruitment
procedures, and initiatives to develop the leadership potential of managers.
The department will survey its staff again in 2006.
Following through
The department’s vision is ‘a sustainable Australia’. Achieving this vision means
planning for the longer term to maintain the health of our natural resources
while our economy continues to develop. Getting the right balance between
environmental, social and economic priorities is an ongoing challenge. In order to

Executive summary
do this effectively the department often finds itself seeking to influence activities
that are the primary responsibility of other portfolios. It is essential, therefore, that
the department forges effective ways of working with other portfolios.
In most cases it will take time before the benefits of the government’s environment
and heritage programmes become apparent. It will be critical to work with and
maintain the confidence and support of the Australian community over these long
time frames.
The department has proven its ability to broker innovative solutions. It needs to
become a leader in demonstrating the effectiveness of environment and heritage
programmes.
David Borthwick
5
Executive summary
Summary of main results
Protecting the environment (progress towards Outcome 1)

Climate change
• New programmes under the Climate Change Strategy were established to help build an pages 20–22
effective global response to climate change, and to reduce Australia’s greenhouse gas
emissions both to meet its Kyoto target and in the longer term
• The Tracking to the Kyoto Target 2004 report confirmed Australia is on track to meet its Kyoto page 26
emissions target
Air pollution
• A new Air Toxics National Environment Protection Measure will help develop air quality page 34
standards for the main toxic air pollutants
• New fuel standards meant cleaner petrol was available in Australia from 1 January 2005, page 37
giving lower levels of sulfur, olefins and aromatics in vehicle exhaust
• The Cycle Connect grants programme started, supporting cycling as a way of reducing air page 36
pollution in cities
Biodiversity and wildlife

• The first projects under the Maintaining Australia’s Biodiversity Hotspots Programme page 46
provided funding to conserve biodiversity
• 67 new recovery plans for threatened species and ecological communities were approved page 48
• The great white shark is now protected internationally and trade in its products is regulated pages 58, 66
under the Environment Protection and Biodiversity Conservation Act 1999
Coasts and oceans

• Australian governments signed off on agreements for dealing with issues related to coastal pages 62, 65
development and introduced marine pests
• Major marine surveys off northern Australia helped build the knowledge base needed to pages 73–75
ensure marine activities are ecologically sustainable
Assessments and approvals

• Since July 2000 more than 1 000 matters of national environmental significance have been page 85
protected through the referrals, assessments and approvals process, with 193 of these
matters protected in 2004–05
• The department’s compliance and enforcement capabilities were enhanced page 85
Heritage
• The site of the Royal Exhibition Building and Carlton Gardens in Victoria was inscribed page 92
on the World Heritage List
• The new national and Commonwealth heritage lists were extended, meaning that more page 92
nationally important heritage places are now protected
Human settlements and industry

• Major supermarkets exceeded their national target for reducing the use of plastic bags page 107
• A new version of the National Packaging Covenant was agreed, reducing waste from used page 110
packaging for another five years
• A new water efficiency and labelling scheme for household appliances was established to page 112
help consumers buy products that use less water

Executive summary
Inland waters
• Under the Australian Government Water Fund, part of the National Water Initiative, the first page 132
round of Community Water Grants was funded to show how local communities can save water
Land
• The Tasmanian Community Forest Agreement was signed, guaranteeing protection for page 143
171 300 hectares of forests
Parks and reserves

• Government funding helped to add 212 895 hectares to the National Reserve System, pages 152–153
which now protects 80.9 million hectares
• A strategic national approach for the establishment and management of the National page 152
Reserve System was endorsed by Australian governments
Advancing Australia’s Antarctic interests (progress towards Outcome 2)

• An international regulatory approach to assigning liability for environmental emergencies page 172
in Antarctica was agreed
• Australia and like-minded countries blocked Japan’s proposed management scheme for pages 177–179
commercial whaling, and a majority of International Whaling Commission members supported
Australia’s resolution calling on Japan to withdraw its proposal to extend scientific whaling
• Australia established an east Antarctic air link—the first stage of providing essential transport pages 185–186
services—and the Australian Government allocated additional funding for the second stage
Managing the department

Managing the department’s environmental impacts
• The department extended its triple bottom line reporting to include Antarctic, parks and pages 197–199
Supervising Scientist operations
Engaging with stakeholders

• The department put in place a new service charter, committing a client service officer to page 200
respond to feedback or complaints from clients
Improving the way the department operates
• New streamlined outputs and targeted performance indicators were developed for 2005–06 page 208
to improve reporting on environmental outcomes
• An internal review of the department’s corporate governance framework found that the page 209
current systems are operating effectively
Supporting the department’s workforce

• Procedures for recruitment, performance management, workload management, and page 216
change management were reviewed and updated
• The refresh of the department’s IT systems was brought forward to respond to staff concerns page 216
• The department’s status as an Investor in People was reconfirmed page 216
• The intake of the graduate recruitment programme was expanded page 227
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Executive summary
Organisation
As at 30 June 2005 the department was made up of 12 divisions (opposite).
Changes since the 2004–05 Budget

After the election of 9 October 2004 the government decided to move the
Australian Greenhouse Office and the National Oceans Office into the
department. 1 As a result:
• two divisions (the Industry, Communities and Energy Division and the
International, Land and Analysis Division) moved into the department
• the department created the Marine Division, taking the opportunity to bring
together marine policy functions from various parts of the department.
Some Indigenous heritage functions were transferred to the department after the
Australian Government abolished the Aboriginal and Torres Strait Islander Services
agency on 20 June 2004. See also page 301.
Role and functions

• Advising the Australian Government on its policies for protecting the
environment and heritage
• Administering the government’s main laws relating to the environment and
heritage, including the Environment Protection and Biodiversity Conservation
Act 1999
• Managing the government’s main environment and heritage programmes
including the $3 billion Natural Heritage Trust—the Australian Government’s
main environmental programme
• Implementing an effective response to climate change
• Representing the Australian Government in international negotiations related
to the environment and Antarctica—examples include the Convention on
Biological Diversity, the Antarctic Treaty System and the International Whaling
Commission.
1
Both agencies ceased as separate executive agencies under the Public Service Act 1999 on 26 October 2004, and as
prescribed agencies under the Financial Management and Accountability Act 1997 on 3 November 2004.

Executive summary
Environment and heritage portfolio
Senator the Hon Ian Campbell
Minister for the Environment and Heritage
The Hon Greg Hunt MP

Parliamentary Secretary
Department of the Environment and Heritage Bureau of Meteorology

Geoff Love
Director
David Borthwick
Secretary
Howard Bamsey Anthea Tinney Conall O’Connell

Deputy Secretary Deputy Secretary Deputy Secretary
Great Barrier Reef

Australian Approvals and Land, Water and Marine Park Authority
Antarctic Division Wildlife Division Coasts Division The Hon Virginia
Tony Press Gerard Early Tony Slatyer
Chadwick
First Assistant First Assistant First Assistant
Chairman
Secretary, Secretary Secretary
Director
Corporate Marine Division
Industry, Strategies Division Donna Petrachenko
Communities and David Anderson First Assistant
Energy Division First Assistant Secretary Office of the Renewable
Includes the National Energy Regulator
Barry Sterland Secretary
Oceans Office David Rossiter
First Assistant
Secretary Heritage Division Renewable Energy
Natural Resource Regulator
Peter Burnett
Management
International, First Assistant Programmes
Land and Analysis Secretary Division
Division Malcolm Forbes
Ian Carruthers Policy First Assistant
First Assistant Coordination Secretary Sydney Harbour
Secretary and Environment Federation Trust
Protection Division Parks Australia Geoff Bailey
The Industry, Mark Tucker Division Executive Director
Communities and First Assistant Peter Cochrane
Energy Division Secretary Director of National
and International, Parks
Land and Analysis Supervising Bruce Leaver
Division make Scientist Division First Assistant
up the Australian Arthur Johnston Secretary Director of
Greenhouse Office First Assistant
National Parks
Secretary, Executive Policy Peter Cochrane
Supervising Advisor
Scientist Diana Wright
First Assistant
Secretary
9
Executive summary
Outcomes and outputs

The department receives annual funding to deliver a set of outputs that contribute
to achieving two outcomes:
Outcome 1: The environment, Outcome 2: Australia’s interests in

especially those aspects Antarctica are
that are matters of advanced
national environmental
Output 2.1: Influence in Antarctic
significance, is protected
Treaty System
and conserved
Output 2.2: Protecting the Antarctic
Output 1.1: Atmosphere
environment
Output 1.2: Biodiversity
Output 2.3: Understanding global
Output 1.3: Coasts and oceans climate system
Output 1.4: Environmental assessment Output 2.4: Undertake scientific work
and approvals of practical, economic or
national significance
Output 1.5: Heritage
Output 1.6: Human settlements
Output 1.7: Inland waters
Output 1.8: Land management
Output 1.9: Parks and reserves
Output 1.10: Climate change
Changes since the 2004–05 Budget

The department changed its outputs for the 2004–05 additional estimates
statement to accommodate the functions of the Australian Greenhouse Office and
the National Oceans Office. Output 1.3 (originally just ‘coasts’) was revised to
accommodate marine functions. Output 1.10 (‘climate change’) was added.
The department subsequently reviewed its outputs structure and developed a
new structure in consultation with the minister and the Department of Finance
and Administration. The new structure appeared in the 2005–06 portfolio budget
statement. The department will report against the new structure in 2006. See also
page 208.

Executive summary
Total resources
Financial resources Workforce
Total resources 2004–05 = $744 million Total workforce 2004–05 = 2 000 personnel
/UTCOME !USTRALIAN
DEPARTMENTAL #APITAL4ERRITORY

/UTCOME .ORTHERN
ADMINISTERED /THERLOCATIONS
/UTCOME 4ERRITORY
SEEPAGE
DEPARTMENTAL
!NTARCTICA
4ASMANIA

See page 234 for a detailed breakdown. See page 219 for a detailed breakdown.
To prevent double counting, a $23 million A map showing office locations appears
payment from the Natural Heritage Trust (part of on page 456.
‘Outcome 1 administered’) has been excluded
from ‘Outcome 1 departmental’.
Part of the Department’s Canberra-based staff.

Photo: M Mohell
11
Executive summary

Environment—Outcome 1
Outcome 1: The environment, especially those

aspects that are matters of national environmental
significance, is protected and conserved.
Climate change
The Department of the Environment and Heritage, through its Australian Greenhouse
Office, contributes to the global effort to respond to climate change and implements
the Australian Government’s climate change strategy. The department works closely
with other departments, including the Department of Foreign Affairs and Trade, and
the Department of Industry, Tourism and Resources, to progress this strategy.
Main responsibilities relevant to this output

Australian Greenhouse
Australia’s climate change strategy:
Office, comprising the
• International engagement on climate change Industry, Communities
• Greenhouse gas emissions management and Energy Division, and
the International, Land and
• Foundation: understanding of climate change
Analysis Division
Objectives
• To lead the development and implementation of the government’s major
climate change programmes, working in partnership with other departments
• To work with industry, business and the community across Australia in taking
action to reduce national greenhouse gas emissions
• To enhance Australia’s regional development and natural resource management
by promoting greenhouse action on the land
• To act to increase the uptake of energy efficiency
• To pursue a multi-pronged effort to build a practical and effective global
response to climate change, including action at the multilateral, regional and
bilateral levels

Climate change
• To extend Australia’s world-class scientific expertise in climate change, and
build the capacity of regions, industries and community to adapt to climate
change
• To deliver robust projections of Australia’s progress in meeting its
internationally agreed 108 per cent greenhouse gas emissions target
Main results
• Progress was made in developing and implementing new programmes
under the Australian Government’s $1.8 billion Climate Change Strategy
• The Ministerial Council on Energy agreed to stage one of the National
Framework for Energy Efficiency, delivering up to 9 million tonnes of
greenhouse gas savings and $400 million to gross domestic product
when fully implemented
• The Tracking to the Kyoto 2004 emissions projections and the 2003
National Greenhouse Gas Inventory showed Australia is on track to meet
its Kyoto target
• Progress was made under bilateral climate change partnerships, and
formative discussions were held with key regional countries on a new
Asia–Pacific Partnership on Clean Development and Climate
Australia’s Climate Change Strategy

The concentration of heat-trapping gases in the atmosphere is rising, changing
the Earth’s climate. Over the past century the world has warmed by an average
0.6 degrees Celsius, with the most rapid increase occurring over the last 30 years.
Much of this change is linked to human activity.
The Intergovernmental Panel on Climate Change, a body established by the World
Meteorological Organization and the United Nations Environment Programme,
has predicted that without intervention average global surface temperatures could
increase by 1.4 to 5.8 degrees Celsius by the end of this century. Temperature
changes of this magnitude are likely to have major effects on the environment,
human health and economies.
Stabilising the concentration of carbon dioxide (and the other greenhouse gases)
in the atmosphere to prevent the worst of these impacts will require a strong and
effective global response. All greenhouse gas emitting nations will need to commit
to reducing their emissions.
15
Climate change
In 2004 the Australian Government announced a new Climate Change Strategy to:
• enhance international engagement to work towards an effective global
response to climate change
• focus domestic action to meet Australia’s internationally agreed greenhouse
emissions target in the short term, and in the longer term deliver a lower
emissions signature while maintaining a strong economy
• prepare Australia for the unavoidable consequences of climate change.
The strategy was articulated through measures announced in the May 2004 federal
Budget and the June 2004 energy white paper, Securing Australia’s Energy Future.
These measures increased the Australian Government’s commitment to climate
change activities that directly involve the Australian Greenhouse Office to around
$1.8 billion until 2012–13. This included $802.1 million for ongoing programmes,
$275.2 million for new Budget measures and $732.6 million for energy white paper
measures (provided through the Budget additional estimates).
Implementing the full range of measures that make up the climate change strategy
was a key focus of the work of the Australian Greenhouse Office during 2004–05.
International engagement on climate change

Australia is pursuing an international climate change strategy that includes
both multilateral and bilateral actions. Australia is a party to the United Nations
Framework Convention on Climate Change, which lays the basis for global
action ‘to protect the climate system for present and future generations.’ Bilateral
relationships provide a framework for high-level engagement on policy issues and
cooperative projects that benefit both countries involved.
The Australian Greenhouse Office contributes to Australia’s efforts to progress
action on climate change through international forums. The office provides
briefings to ministers and departmental officials who participate in negotiations at
these meetings.
Kyoto Protocol
The Kyoto Protocol is an international treaty under the United Nations Framework
Convention on Climate Change designed to limit global greenhouse gas emissions.
It includes emissions target commitments for developed countries. The Kyoto
Protocol came into force on 16 February 2005 following Russian ratification.
In the 1997 Kyoto negotiations Australia agreed to limit its greenhouse gas
emissions to 108 per cent of the level of 1990 emissions by 2008–2012. The
Australian Government is committed to meeting this target. The most recent
projections (see page 26) show that Australia is on track to do so.

Climate change
While strongly investing in domestic greenhouse action, the Australian
Government has decided not to ratify the Kyoto Protocol. The government believes
the protocol is not a sufficient global response to climate change because it does
not provide a pathway for all major emitting countries to commit to reducing
their greenhouse gas emissions. The majority of the world’s top 12 greenhouse
gas emitters, including the world’s largest emitter the United States, and large
developing countries such as China and India, have not accepted or are not
covered by the protocol’s binding emissions caps.
During 2004–05 Australia continued to work for the development of an
international climate change response that is environmentally effective,
economically efficient and includes all major emitters. The need for a response
‘beyond Kyoto’ is being increasingly recognised worldwide.
Buenos Aires climate change conference

The 10th Conference of the Parties to the United Nations Framework Convention on
Climate Change was held from 6–17 December 2004 in Buenos Aires, Argentina.
Australia supported the development of the Buenos Aires Programme of Work
on Adaptation and Response Measures, a long-term work programme to assist
the most vulnerable developing countries adapt to the unavoidable adverse
consequences of climate change.
The Minister for the Environment and Heritage was one of six ministers invited
to speak at the high-level segment on the impacts of climate change, adaptation
measures and sustainable development. He highlighted two key priorities for
international adaptation efforts:
• addressing the information gaps to better understand the likely impacts of
climate change at a regional and local level
• identifying ways of mainstreaming adaptation to climate change into broader
sustainable development objectives.
Other key international forums

Other international forums in which Australia played a strong role included the
United Kingdom Ministerial Roundtable on Energy and the Environment
(15–16 March 2005, London) and the Australia–New Zealand climate change forum
(7–8 April, Sydney).
The London ministerial roundtable brought together ministers from key developing
and developed countries to discuss ways to respond to climate change, ensure
energy security and end energy poverty. The Minister for the Environment and
Heritage chaired the session on developing lower carbon energy systems at this
meeting.
17
Climate change
The climate change forum brought together senior Australian and New Zealand
industry and government leaders to discuss possible approaches to respond to
climate change internationally. The forum was facilitated by the Pew Center on
Global Climate Change, a leading US-based think-tank that is conducting a high-
level international dialogue on future global action on climate change.
The minister and the department also participated in formative discussions with
the United States and other countries in the Asia–Pacific Partnership on Clean
Development and Climate.
Multilateral projects
In November 2004 Australia joined with 13 other nations as a founding member
of the Methane to Markets Partnership. The partnership focuses on cost-effective,
short-term methane recovery and its use as a clean energy source. This will
enhance economic growth, improve energy security and reduce greenhouse gas
emissions from coal mines, landfills, and the oil and gas sector. The partnership
promotes collaboration between developed and developing country partners, with
strong participation from the private sector.
Australia also participates in three other technology focused partnerships—the
Renewable Energy and Energy Efficiency Partnership, the International Partnership
on the Hydrogen Economy and the Carbon Sequestration Leadership Forum. In
June 2005 funding of $381 000 was provided to the Australian Business Council for
Sustainable Energy to establish and operate an Oceania Secretariat of Renewable
Energy and Energy Efficiency Partnership for three years. A further $90 000
contribution was provided for the renewable energy partnership’s Renewable
Energy International Law Project.
Bilateral relationships
Australia continued to work with its five bilateral climate change partners—the
United States, China, New Zealand, Japan and the European Union—on practical
actions to contribute to the global climate change response. More than 40 projects
are now under way through these partnerships.
United States: The Australia–United States Climate Action Partnership continued
to deliver concrete outcomes across a broad range of areas, including work with
Australia’s Pacific neighbours on climate change science, research and monitoring;
and constructive work on geosequestration and hydrogen through the Carbon
Sequestration Leadership Forum and International Partnership on the Hydrogen
Economy. There was also significant progress on renewable energy with the US
Department of Energy and the Australian Greenhouse Office establishing a future
programme of work on renewables under the partnership.

Climate change
China: The Australia–China Climate Change Partnership was strengthened with
the signing on 16 August 2004 of a Memorandum of Understanding on Climate
Change Activities, followed by a workshop in Beijing from 13–15 September 2004.
This workshop enabled Australian and Chinese industry representatives to identify
opportunities for collaboration on climate change projects.
New Zealand: From 4–5 November 2004 the Australian and New Zealand
Governments co-sponsored Climate Change and Business: The Australia–New
Zealand Conference and Trade Expo, which was attended by more than
200 representatives. The event enabled an exchange of ideas and information on
activities and opportunities to respond to climate change.
Japan: Australia and Japan co-hosted the Asia–Pacific Seminar on Climate Change
held in Sydney, Australia from 21–24 September 2004. Experts from 19 countries
and representatives from eight United Nations agencies and other international
agencies participated. The seminar included updates on efforts to address climate
change in the Asia–Pacific region, capacity building, adaptation, science and
technology, and lessons learnt for future action.
European Union: Work continued with the European Union to develop an
agreed plan of action on energy efficiency including reducing standby power
consumption of consumer electronics, benchmarking of minimum energy
performance standards for residential air conditioners, examining standby power
losses in non-residential buildings, and developing efficiency standards and labels
for residential appliances.
Greenhouse gas emissions management

While Australia only contributes about 1.4 per cent to global greenhouse gas
emissions, our economy is relatively energy intensive. Fossil fuels dominate our
energy production. As Australia is a major exporter of emission-intensive goods
our economy is potentially vulnerable to domestic and international measures
to address climate change, which could affect the global competitiveness of
Australian industries.
Australia’s challenge is to continue to reduce greenhouse gas emissions while
maintaining and growing a strong economy that provides for the well-being of all
Australians.
The Australian Greenhouse Office contributes by building partnerships with
industry, developing energy technologies that have low emissions, and investing in
local and regional actions that reduce overall emissions.
19
Climate change
Current measures undertaken across all levels of government are helping to reduce
Australia’s greenhouse gas emissions by 94 million tonnes of carbon dioxide by
2010. This has Australia on track to meet its Kyoto Protocol emissions target (see
projections, page 26).
During the year the Australian Greenhouse Office began implementing new
programmes announced in 2004 as part of the Australian Government’s $1.8 billion
Climate Change Strategy. This strategy will help Australia to meet its Kyoto target in
the short term, while positioning us for future greenhouse gas reduction action in
the long term.
Building industry partnerships—new programmes

During the year the Minister for the Environment and Heritage launched the
reinvigorated Greenhouse Challenge Plus programme. The programme
builds on the success of Greenhouse Challenge and incorporates two existing
initiatives—Greenhouse Friendly and Generator Efficiency Standards—into a single
industry partnerships programme. Greenhouse Challenge Plus helps participants
integrate greenhouse issues into business decision-making, reduce greenhouse gas
emissions and accelerate the uptake of energy efficiency. Greenhouse Challenge
Plus has more than 770 participants, representing almost 50 per cent of greenhouse
gas emissions from industry. It has excellent coverage of companies in key sectors,
including the electricity supply, oil and gas, aluminium, cement, mining and
manufacturing sectors. The new programme will provide $31.3 million over
four years.
Most Greenhouse Challenge Plus member companies participate in the programme
voluntarily but from July 2006, companies that receive more than $3 million per
year of business fuel credits will be required to join the programme in order to
receive these credits. In addition, a new requirement for proponents of major
energy resource developments to join the programme is being developed.
New programmes for low emission technologies were developed, requiring
extensive consultation with industry organisations, technical experts and
the public. The government’s $500 million Low Emissions Technology
Demonstration Fund will operate from 2005–2020 to support the demonstration
of new low-emission technologies with significant long-term greenhouse
abatement potential. The fund aims to leverage at least $1 billion in contributions
from the corporate sector. On 3 June 2005 the Australian Greenhouse Office
invited public comment on draft guidelines for the first round of funding, and on
a statement of challenges and opportunities, which reflects the energy sector’s
operating environment and the Australian Government’s current priorities. During
the year the office also progressed the $26.8 million Low Emissions Technology

Climate change
and Abatement programme, including preparations for a monitoring regime for
a geosequestration pilot project, and undertaking consultancies to develop other
programme themes (including fossil fuels, and local and regional action—
see also page 23).
Building industry partnerships—ongoing programmes

The Greenhouse Gas Abatement Programme provides funding for mainly
large-scale projects that use low-emissions technologies and practices. Twelve
projects are on track to deliver emissions reductions from 2008–2012.
Under the Alternative Fuels Conversion Programme the Australian
Greenhouse Office worked with the United States engine manufacturer Clean
Air Power to develop the Caterpillar C15 engine for long-haul truck rigs, tailor it
to Australian conditions and test its operation in Australian fleet conditions. The
new engine uses liquefied natural gas and diesel, with tests showing an 8 per cent
reduction in greenhouse emissions and improved air quality outcomes.
Action on energy efficiency

The Australian Greenhouse Office supported the Australian Government’s input
to the development of the National Framework for Energy Efficiency, which was
adopted by the Ministerial Council on Energy on 27 August 2004. The framework
will improve the energy efficiency of residential and commercial buildings,
appliances and equipment, as well as energy use in the industrial and commercial
sectors. It also covers training and accreditation, the finance sector, and increasing
consumer awareness. During the year Minimum Energy Performance Standards for
air-conditioners came into effect, and standards for refrigerators were upgraded.
The Your Building project was announced as a collaborative effort between
industry and government to produce a guide to sustainable commercial office
building. This will complement the successful Your Home guide to sustainable
housing.
Renewable energy—new programmes

The government’s flagship Solar Cities programme will provide $75 million
over nine years (2004–2013) to demonstrate the costs and benefits of solar power
and smart electricity technologies on a large scale. The programme is on track
for the announcement of the location of Solar Cities during 2006. Programme
development during the year included stakeholder consultation, finalising of
programme guidelines and a call for expressions of interest.
The Australian Greenhouse Office contributed to the development of the
Renewable Energy Development Initiative, which will support the
21
Climate change
commercialisation of important renewable energy projects. The initiative will

provide $100 million in funding to industry over seven years (2004–2011).
It is being administered jointly with the Department of Industry, Tourism and
Resources. Applications were invited under the first round of funding on
8 June 2005.
A programme framework was developed for the Advanced Electricity
Storage Technologies Programme and a study of Australian capabilities was
commissioned. This programme will provide $20.5 million over five years
(2004–2009) to help develop advanced technologies for storing electricity
generated through renewable sources.
The Australian Greenhouse Office completed planning for the delivery of the
government’s wind forecasting capability in consultation with stakeholders.
This programme will help increase the value of wind energy in the electricity
grid by more accurately predicting wind energy generation. Negotiations were
advanced with the National Electricity Market Management Company on design
and implementation of the forecasting system. In addition, agreements were
finalised with the CSIRO Wind Energy Research Unit, the Bureau of Meteorology,
and the Centre for Energy and Environmental Markets.
Renewable energy—ongoing programmes

The Renewable Remote Power
Generation Programme provided 638
grants totalling $22.4 million to increase
the use of renewable energy generation
in remote parts of Australia and to reduce
the amount of diesel used to generate
electricity. These grants brought the total
number of projects funded to 3 608.
The $55.6 million Renewable Energy
Commercialisation Programme is fully
Providing power to remote communities committed. During the year, nine recipients
Photo: Solar Systems Pty Ltd of programme funding completed their
A 220 kilowatt solar power station for the projects. For example a concentrating dish
Anangu Pitjantjatjara lands in north-east solar photovoltaic project in the Anangu
South Australia was built with the help of
$1 million in Australian Government
Pitjantjatjara lands in the north west of
funding. South Australia is now providing electricity
to the local Indigenous community (left).
This has led to the construction of a further
three similar power stations at remote communities at Hermannsburg, Yuendumu
and Lajamanu in the Northern Territory.

Climate change
The Renewable Energy Equity Fund continued to provide venture capital
to small, innovative renewable energy companies to help commercialise their
technologies. During 2004–05 an additional $2.2 million was invested in five
companies, leveraging an additional $1.1 million in private sector investment.
The Photovoltaic Rebate Programme provides cash rebates for consumers
who install grid-connected or stand-alone photovoltaic systems. In 2004–05 the
programme provided 808 rebates, representing more than $3.2 million invested.
This brought the total number of photovoltaic systems installed over the life of the
programme to 6 176. As part of the May 2005 Budget the government announced
that it would extend the programme for two years, providing $5.7 million in each
of 2005–06 and 2006–07.
The Mandatory Renewable Energy Target scheme sets up a national
renewable energy market based on a system of tradeable certificates. The Office
of the Renewable Energy Regulator administers the scheme, although policy
responsibility remains with the Australian Greenhouse Office.
Following the 2003 review of the Mandatory Renewable Energy Target, the
government confirmed its commitment to the current renewable energy target of
9 500 gigawatt hours by 2010 in the energy white paper Securing Australia’s
Energy Future. The government also agreed to a number of legislative and
regulatory amendments to improve the administrative efficiency and operational
effectiveness of the Renewable Energy (Electricity) Act 2000.
Local and regional action

The Australian Government helps local governments to reduce their net
greenhouse gas emissions through the Local Greenhouse Action programme.
This programme includes Cities for Climate Protection™ Australia, where Australia
has the largest and most advanced programme of activities in the world, involving
203 local governments and representing 78 per cent of the Australian population.
Grants totalling $0.8 million in 2004–05 supported home energy audits and
retrofits, community workshops, transport initiatives and energy efficient retrofits
of community facilities such as child care centres, aquatic centres and libraries.
Greenhouse Action to Enhance Sustainability in Regional Australia
addresses challenges and knowledge gaps about climate change in regional
Australia. During the year work started on a range of partnership projects addressing
emissions management and adaptation issues across the agriculture, forestry and
natural resource management sectors. Expenditure on these projects was $6.2 million
in 2004–05, leveraging an additional $16.5 million from industry and the states.
See also: native vegetation management framework, page 141.
23
Climate change
Foundation: understanding of climate change

The Australian Government’s response to climate change is built on the quality
of underpinning knowledge about the issues, the capacity to accurately measure
greenhouse gas emissions at a national and sectoral level, and the ability to identify
and respond to emerging issues.
For example research is revealing more about the influence ocean circulation has
on the regional and global climate and on transporting heat and absorbing carbon.
The discovery this year that the deep waters of the Southern Ocean are cooler and
less salty than they were 10 years ago (see page 182) demonstrated the benefits
of future investment in scientific research into the connections between climate
change and the Southern Ocean.
Australian Climate Change Science Programme

The $30.7 million Australian Climate Change Science Programme will support
research over four years into the nature, causes, timing and implications of climate
change for Australia. The programme helps to maintain Australia’s world-class
climate modelling capacity. Partly as a result of the programme’s investments,
Australia is recognised internationally for the quality of its climate change science.
The Australian Government increased funding for the programme in the May 2004
Budget. New elements introduced into the programme following stakeholder
consultation include work on the detection and attribution of climate change in
Australia; research into the implications of climate change for climate variability
and extreme events; and a new generation of climate change projections based on
probabilities of change.
National Climate Change Adaptation Programme

Some degree of climate change is inevitable due to the level of greenhouse
gases already in the atmosphere. The National Climate Change Adaptation
Programme, announced in the May 2004 Budget, will help Australians manage
the consequences of climate change. The $14.2 million programme will operate
over four years (2004–2008).
A report commissioned during the year—the National Risk and Vulnerability
Assessment—identified the sectors and regions where Australians would benefit
most from giving early attention to planning how to adapt to the consequences
of climate change (see www.greenhouse.gov.au/impacts). The Australian
Greenhouse Office also began developing guidance for this type of planning.

Climate change
Other key areas of work during 2004–05 included:
• a four-year, $2 million partnership with the Great Barrier Reef Marine Park
Authority to develop a climate change action plan for the reef
• establishment of the South-east Australian Climate Project to examine climate
change, and particularly its impact on water resources, in the Murray–Darling
Basin and south-east Australia. The project was set up under an agreement with
the Murray–Darling Basin Commission, Land and Water Australia, the Victorian
Department of Sustainability and the Environment, CSIRO and the Bureau of
Meteorology
• an investigation of the possible implications of climate change impacts for
building practices, undertaken in cooperation with the Australian Building
Codes Board.
National Greenhouse Gas Inventory

Each year the Australian Greenhouse
Office prepares an inventory of Sources of Australia’s
Australia’s greenhouse gas emissions, greenhouse gas emissions
as required under the United Nations Total greenhouse gas emissions in 2003 = 550
carbon dioxide equivalent (CO2-e) megatonnes
Framework Convention on Climate
Change. These inventories, which are 3TATIONARY
available at www.greenhouse.gov.au/ ENERGY

inventory, are prepared in accordance
with international guidelines under 7ASTE

the guidance of a national committee
,ANDUSE
made up of federal, state and territory LANDUSE
CHANGEAND
government representatives (the FORESTRY 4RANSPORT
methods used are also available
!GRICULTURE
online). &UGITIVE
)NDUSTRIAL EMISSIONS
PROCESSES
The inventory includes emission
estimates for different industry sectors

(right) with estimates for the land-use Data current in 2003.
change and forestry sector produced by
the National Carbon Accounting System
(discussed below, page 27).
The 2003 National Greenhouse Gas Inventory was released on 24 May 2005,
showing that national greenhouse gas emissions were 101.1 per cent of their 1990
level. This small increase in emissions is consistent with the updated projections
released in December 2004 (see next section).
25
Climate change
Also during the year an interactive Australian Greenhouse Emissions Information

System was published online at www.greenhouse.gov.au/inventory. The new system
allows anyone to check how Australia is tracking against its Kyoto target and to
identify sources of greenhouse gas emissions. Its development keeps Australia among
the world’s leading nations in providing access to greenhouse gas emissions data.
The Australian Greenhouse Office also prepared state and territory inventories to
complement the national inventory and to inform state and territory policy-making.
The new Australian Greenhouse Emissions Information System provides the
capability to issue state and territory inventories on an annual basis.
Greenhouse gas projections

The Australian Greenhouse Office prepares projections of Australia’s future
greenhouse gas emissions (see chart below). The projections help the government
to determine whether its policies and programmes will help Australia meet its
international emissions target.
Updated projections which follow accounting rules developed under the Kyoto
Protocol were released on 6 December 2004 in a report called Tracking to the
Kyoto Target 2004. The projections showed that Australia is on track to meet its
Kyoto target of limiting greenhouse gas emissions in the period 2008–2012 to
108 per cent of their 1990 level. Australia’s greenhouse policies and programmes
are projected to reduce greenhouse gas emissions by 94 million tonnes by 2010—
more than the equivalent of eliminating all emissions from the transport sector.
See www.greenhouse.gov.au/projections.
Australia’s greenhouse gas emissions (1990–2020)
BUSINESSASUSUAL WITHEMISSIONREDUCTIONMEASURES

-EGATONNESOFCARBONDIOXIDEEQUIVALENT

OFEMISSIONLEVELS
EMISSIONS

The dashed horizontal line shows Australia’s Kyoto Protocol target.

Climate change
National Carbon Accounting System
Australia’s capability to account for greenhouse gas emissions from our land
systems is provided through the world-leading National Carbon Accounting
System, which uses computer-based land systems modelling and observations to
provide a national map of emissions at a sub-hectare scale.
Over the last year many of the
fundamental datasets, such as climate
and remotely sensed vegetation cover
change, were updated to current time.
Research and development activities,
largely jointly conducted with various
state and territory agencies, CSIRO,
universities and private sector interests,
also helped to improve the system and
David Borthwick (secretary) with Dr Gary expand its capability. In recognition of his
Richards and Howard Bamsey (deputy contribution to the application of remote
secretary)
sensing to environmental management on
Photo: L Cotton
a continental scale, the principal scientist
Dr Gary Richards, principal scientist of the
National Carbon Accounting System, received
of the National Carbon Accounting System
a CSIRO Chairman’s Medal as part of the received a CSIRO Chairman’s Medal on
CSIRO Mathematical and Information Sciences 9 November 2004 (left).
Mapping and Monitoring Team. The award
recognised Dr Richards’ contribution to applying A National Carbon Accounting Toolbox
remote sensing to environmental management was released in March 2005 to enable
on a continental scale. Dr Richards was part
of a team that used satellite images to map landholders to examine the history of
vegetation change in Australia over a their properties through a time-series
30-year period. This work is being used to archive of remotely sensed images, and to
assess Australia’s carbon budget and also to
develop policies for land management issues
model the greenhouse gas implications of
such as land clearing and salinity. agricultural and forestry activities.
Review of Australia’s Third National Communication

Parties to the United Nations Convention on Climate Change are required to report
their progress to the convention’s secretariat every three to four years through what
is referred to as a national communication. The secretariat then carries out an
in-depth review of each national communication.
The secretariat carried out the in-depth review of Australia’s Third National
Communication in 2004. The Australian Greenhouse Office received a draft
report of the review in February 2005 and has worked closely with the secretariat
to ensure the report is complete and accurate. The review of the Third National
Communication was released in August 2005.
See also: Antarctica’s influence on the climate, page 182.
27
Climate change
Results for performance indicators

Performance indicator 2004–05 results
International
Effectiveness in key international, regional and Worked effectively through the United Nations
bilateral climate change processes on issues for Framework Convention on Climate Change
which the Australian Greenhouse Office has lead to achieve key outcomes, including reaching
responsibility agreement to develop a 5-year programme on
adapting to climate change
Played a key role in several international forums on
post-2012 action on climate change
Further developed both bilateral and plurilateral
climate change partnerships
The number of initiatives delivered through key More than 50, including implementing more than
international, regional and bilateral processes 30 practical bilateral climate change projects and
agreement to 12 additional projects; co-hosting
with Japan a major Asia-Pacific Seminar on Climate
Change in Australia; and gaining international
support for an Australian initiative on a land use,
land use change and forestry dialogue
Emissions management
Reporting systems are appropriately targeted and National Greenhouse Gas Inventory reviewed
high quality independently for United Nations Framework
Convention on Climate Change and found to
comply with requirements
Joint Ministerial Council on Energy–Environment
Protection and Heritage Council streamlining and
standardising emissions and energy reporting
mechanisms for business
Implementation of consistent measurement of Ongoing programme of continuous improvement

abatement across programmes as part of projections process, supported by close
involvement of programme managers in specifying
abatement measurements
Risks to programme delivery identified and Comprehensive risk management plans in place for
managed each programme
Effectiveness of support for greenhouse response Series of Australian Greenhouse Office programmes
within sectors providing high level of engagement with sectors
(for example, Greenhouse Challenge Plus includes
approximately 770 member companies, Cities
for Climate ProtectionTM Australia has over
200 participating local governments covering
approximately 78% of the population)
Measurable behaviour change within sectors Analysis of Recent Trends and Greenhouse Indicators
1990 to 2002 released in May 2004 with update due
by the end of 2005

Climate change
Emissions management continued ...
Effectiveness in relevant inter-jurisdictional Climate Change in Agriculture and Natural Resource

processes on issues for which the Australian Management Working Group established under
Greenhouse Office has lead responsibility Natural Resources Management Ministerial Council
with Australian Greenhouse Office secretariat, to
coordinate inter-jurisdictional efforts on emission
management
Australian Greenhouse Office closely involved in
a productive joint Ministerial Council on Energy–
Environment Protection and Heritage Council
working group to streamline reporting requirements
for business
Effectiveness of financial administration Moved from independent agency financial

management system to departmental system
Reported abatement activity including emissions Reported in Tracking to the Kyoto Target 2004
reductions or energy savings released 6 December 2004
National measures delivering 94 million tonnes of
emissions abatement
Estimated cost (government funds) of greenhouse Based on the 2003 projections of abatement
abatement (dollars per tonne) from 2008–2012 and Australian Government
expenditure on programmes to end of June 2003,
the cost per tonne of abatement averaged $4.00
per tonne (including all measures) or $3.40 per
tonne looking only at those programmes where the
primary objective was to deliver abatement. This
estimate will be updated as new programmes are
implemented.
Investment dollars (or contributory funding) Several-fold increase in investment by private sector
leveraged from other parties by projects and through initiatives such as the Greenhouse Gas
programmes Abatement Programme, the Greenhouse Action in
Regional Australia programme and the Mandatory
Renewable Energy Target
Extent of engagement of key stakeholders Series of Australian Greenhouse Office programmes

providing high level of engagement with sectors
(see examples given for ‘Effectiveness of support
for greenhouse response within sectors’; also
Greenhouse Action in Regional Australia is
delivering 8 regional workshops on forest sinks)
Extent of support for long-term low emission COAL21 action plan reflects private sector and
technology uptake inter-jurisdictional support for low emissions
technologies
Public consultation on the Low Emissions
Technology Development Fund was well attended
and the 33 written submissions were all supportive
29
Climate change
Foundation
Effectiveness in relevant and inter-jurisdictional See results under ‘Emissions management’ for
processes on issues for which the Australian ‘Effectiveness in relevant inter-jurisdictional
Greenhouse Office has the lead responsibility processes on issues for which the Australian
Greenhouse Office has lead responsibility’
Extent to which climate change policy is integrated Energy white paper integrated climate change into
in national policies and programmes across key national energy policy
sectors
Trends in community responses to key policy issues Market research to track community attitudes to
climate change will be undertaken in 2005–06
Suitability of climate change publications to meet Audit of effectiveness of current communications

targeted stakeholder needs vehicles is being undertaken during development of
broader climate change communications strategy
Comprehensiveness, timeliness and quality Milestones in programme development and

of monitoring and public reporting on the implementation have been announced publicly in a
implementation of the programmes timely fashion
Delivery of a credible, high quality, annual projection Tracking to the Kyoto Target 2004 released on
of Australia’s greenhouse emissions trends 6 December 2004
Development of consistent measurement of Ongoing programme of continuous improvement

abatement across programmes as part of projections process, supported by close
involvement of programme managers in agreeing
abatement measurements
Number of gaps in climate change policy and Energy white paper and Climate Change Strategy
emerging policy issues identified and managed identified a range of gaps in Australian Government
policy and addressed these gaps
Investment dollars (or in-kind contribution) $5.8 million in 2004–05

leveraged from other parties for Australian
Greenhouse Office climate change science priorities
Number of reports and submissions made in 9 submissions to the United Nations Framework
accordance with national and international Convention on Climate Change
commitments and level of user interest
Number of partnership initiatives developed to 11 established in 2004–05, involving a total

address impacts or adaptation Australian Greenhouse Office contribution of
$5.4 million and a total value of $17.8 million

Climate change
Resources
Element of pricing (1) Budget prices(2) Actual expenses
$’000 $’000
Departmental outputs
Sub-output: International Engagement 2 842 1 380

Sub-output: Emissions Management 24 540 26 473
Sub-output: Foundation 16 415 12 023
Total (=Output 1.10: Climate change) 43 797 39 876
Administered items
Renewable Remote Power Generation Programme 25 259 15 781

Photovoltaic Rebate Programme 4 338 3 537
Renewable Energy Commercialisation Programme 3 721 1 713
Alternative Fuels Conversion Programme 2 796 2 770
Greenhouse Gas Abatement Programme 15 137 12 685
Renewable Energy Equity Fund 3 165 300
Action on energy efficiency 750 750
Low emissions technology and abatement 1 400 0
Local greenhouse action 392 390
Greenhouse action to enhance sustainability in regional Australia 3 165 3 078
Influencing international climate change policy 1 414 1 164
Climate Change Science Programme 6 000 1 477
Advanced Electricity Storage Technologies(3) 500 0
Solar Cities(3) 600 0
Total (Administered) 68 637 43 645

(1)
The budget price estimates and actual expenses shown in the table do not include the resources of the Australian
Greenhouse Office from 1 July 2004 to 3 November 2004, when the office was a separate financial entity from the
department. The financial statements beginning on page 338 show the resources of the Australian Greenhouse
Office for the period 1 July 2004 to 3 November 2004. For an overview of Australian Greenhouse Office resources
covering the entire financial year please refer to pages 241–242.
(2)
Prices are the estimated full-year revenues for departmental outputs and full-year expenses for administered items
that are shown in the 2004–05 portfolio additional estimates statements.
(3)
Funds were moved to 2005–06 and out years at the 2005–06 Budget.
See also: summary resource tables, pages 236–242.
31
Air pollution
The Department of the Environment and Heritage contributes to improving and

protecting the air quality in Australia’s cities and towns, and contributes to the
international effort to restore the Earth’s protective ozone layer.

• Improving air quality Policy Coordination and
• Vehicle emission and fuel standards Environment Protection
• Ozone layer protection Division
Objectives
• To improve urban air quality in order to protect human health and the
environment
• To reduce pollutant emissions from the in-service vehicle fleet
• To protect the stratospheric ozone layer by meeting Australia’s international
obligations and by encouraging Australian industry to minimise emissions of
ozone depleting substances
Main results
• A new Air Toxics National Environment Protection Measure will help
develop air quality standards for the main toxic air pollutants
• New fuel standards meant cleaner petrol was available in Australia from
1 January 2005, giving lower levels of sulfur, olefins and aromatics in
vehicle exhaust
• The Cycle Connect grants programme started, supporting cycling as a
way of reducing air pollution in cities

Air pollution
Improving air quality
National air quality trends
Australians consistently rank air pollution as a major environmental concern.
The department works with other government agencies and industry to reduce
emissions of major pollutants, by tackling the major sources of air pollution,
including motor vehicles, woodheaters and industry.
As a result of these collaborative efforts, the levels of the major pollutants in
Australian cities are generally lower than those found in comparable overseas cities
(Australia State of the Environment 2001 report). Of the major pollutants, nitrogen
dioxide, carbon monoxide, sulfur dioxide and lead are continuing to decline in
Australia’s major cities. However, particle and ozone levels show no obvious
downward trend and are still a major concern in some cities.
To improve access to national air quality data and enable a better assessment of air
quality in Australia, the department undertook considerable developmental work
on a national air quality database during 2004–05. This work built on the existing
database developed for the department’s State of the Air report on air quality
trends in Australia over the period 1991–2001 (www.deh.gov.au/atmosphere/
airquality/publications/status), which was released in April 2004. The new
database will be established in 2005–06 and will provide for the regular updating of
air quality data across Australia.
National air quality standards

The department works with other government agencies through the Environment
Protection and Heritage Council (a council of government ministers responsible
for environment and heritage protection matters) to establish and further develop
the National Environment Protection (Ambient Air Quality) Measure. This measure
includes national benchmarks, such as standards or guidelines, for specified air
pollutants that ensure all Australian communities receive adequate protection from
the harmful effects of air pollution.
Reviewing the ambient air quality standards

The National Environment Protection (Ambient Air Quality) Measure was
established in 1998 and set acceptable levels for the six common pollutants:
particles, ground-level ozone, carbon monoxide, lead, nitrogen dioxide and sulfur
dioxide. These levels are to be met in all states and territories by 2008.
During 2004–05 the department contributed to a number of reviews of these
standards to ensure that they remain at the forefront of air quality protection
around the world.
33
Air pollution
In October 2004 a review was completed that examined whether to include

a standard within the National Environment Protection (Ambient Air Quality)
Measure to protect against short-term (that is, 10-minute) exposures to sulfur
dioxide, mainly from industrial point sources such as smelters. The Environment
Protection and Heritage Council concluded that the introduction of such a standard
was outside the scope of the National Environment Protection (Ambient Air
Quality) Measure and it would consider other options to establish an appropriate
benchmark.
A full review of the National Environment Protection (Ambient Air Quality)
Measure, starting with the development of an issues scoping paper, commenced
in April 2005. This review will assess the effectiveness and appropriateness of
the measure and is scheduled to conclude in 2008. The review may lead to the
variation of National Environment Protection (Ambient Air Quality) Measure
standards and monitoring methods.
To prepare for this full review the department worked with states and territories on
a preliminary review of the ozone standards in the measure. An issues paper was
released for comment on 6 June 2005
(see www.ephc.gov.au/nepms/air/air_nepm_ozone_review.html).
National standards for air toxic pollutants

In December 2004 a new national environment protection measure was established
by the National Environment Protection Council (part of the Environment
Protection and Heritage Council). The new National Environment Protection
(Air Toxics) Measure sets ‘monitoring investigation levels’ for five air toxic
pollutants: benzene, formaldehyde, polyaromatic hydrocarbons, toluene and
xylenes. The levels set in the new measure are not mandatory and are designed
to facilitate the future development of air quality standards for these pollutants
through the collection of monitoring data. However, if monitoring investigation
levels are exceeded, relevant governments are required to investigate further.
Australians are exposed to other air toxic pollutants at levels which, given certain
circumstances, may be of health concern. During 2004–05 the department
commenced work with states and territories to develop a method for identifying
and ranking other toxins that could be included in a future variation to the National
Environment Protection (Air Toxics) Measure. This developmental work will be
completed in late 2005.

Air pollution
Managing woodsmoke pollution
Smoke from woodheaters is a major source of urban air pollution in some areas
in winter. The department administers programmes to reduce air pollution from
woodheaters and other sources of woodsmoke.
The Australian Government has already
completed work to target woodsmoke
pollution in Launceston, which has the
worst woodsmoke problem of any city in
Australia (left).
In the 2005–06 Budget the government
allocated an additional $1 million
over three years (2005–2008) for the
Launceston Clean Air Industry Programme.
During 2004–05 the department undertook
View of the Launceston airshed driving in the detailed scoping and design work
from the freeway. of the programme for the launch in July
Photo: Jim Markos (reproduced with permission)
2005. Building on the success of the
government’s previous programme, the
new programme will provide incentives
for industries in the Tamar Valley area to change their technologies or processes to
reduce particle emissions.
The National Woodheater Audit Programme, administered by the department
between 2003 and 2004, found that most of the woodheater models tested failed
to comply with the national standard for particle emissions from woodheaters. The
programme revealed shortcomings in manufacturing and certification procedures for
woodheaters.
As part of a combined government and industry response the department is
developing a certification procedure to significantly improve the compliance of
woodheaters available for retail sale with Australian standards. The department is
also in the process of making details of woodheater performance available to the
public through the Environment Protection and Heritage Council web site
(www.ephc.gov.au). This will allow consumers to consider the environmental
impacts of various models when purchasing a woodheater.
The department, along with state and territory agencies, is contributing towards
the costs of an expanded audit programme to test all woodheater models over two
years. The audit is being carried out, on behalf of participating governments, by
the Australian Home Heating Association, who are also contributing to the costs of
the programme. The programme started in September 2004. Woodheaters found to
be non-compliant in this audit will have their certification suspended, which will
make them illegal for retail sale in most states and territories.
35
Air pollution
Indoor air quality

The department is investigating ways to improve indoor air quality in non-industrial
locations. A workshop of health experts that met from 2–3 December 2004 identified
priorities for action and further investigation, including priority indoor pollutants
(nitrogen oxides, formaldehyde, volatile organic compounds and ozone).
Consultations with industry and community groups are to be undertaken to help
identify possible actions to improve indoor air quality.
Cycle Connect
The $2.4 million Cycle Connect grants programme promotes cycling as a way of
reducing air pollution in cities. The programme pays for secure bicycle parking
facilities at city bus and train stations, addressing one of the barriers to cycling in
highly built up areas.
The programme’s first round of funding supported six projects with 2004–05
expenditure totalling $0.9 million. Grants were paid to install 1 200 lockers and
cage spaces in Sydney, Melbourne, Brisbane and Adelaide; 20 lockers in Bendigo;
and a secure cage to house over 100 bicycles at the Fremantle railway station.
The programme increased the capacity of bicycle locker storage by targeting areas
of high demand, and improved management of existing storage schemes.
In 2005–06 $1.2 million will be available for grants under the programme’s second
round.
Vehicle emission and fuel standards

Motor vehicles are the largest contributor to urban air pollution in Australia and
have a major influence on the incidence of smog and haze. To reduce motor
vehicle pollution the Australian Government has introduced national fuel quality
standards and is improving emissions standards for cars, buses and trucks.
Harmonisation with European emissions and fuel standards is predicted to reduce
the emissions of some pollutants by up to 60 per cent over a 20-year period from
2000.1 The standards are contributing to improved environmental and health
outcomes. It is estimated that from 2000 to 2019 avoided health costs will amount
to more than $3.4 billion. 2 The standards also pave the way for new and cleaner
vehicle technologies, which will bring fuel consumption benefits.
1
Coffey’s Geosciences Pty Ltd, Review of Fuel Quality Requirements for Australian Transport (2000), Chapter 6.
2
Setting National Fuel Quality Standards, Paper 1, Summary Report of the Review of Fuel Quality Requirements for
Australian Transport (2000), pages 149–153.

Air pollution
The emission standards are being implemented by the Department of Transport
and Regional Services, with progressive improvements set to continue until 2010.
The Department of the Environment and Heritage administers the Fuel Quality
Standards Act 2000. Standards currently apply to the quality of petrol, diesel,
biodiesel and autogas sold in Australia. The department is developing new quality
standards for diesohol and ethanol.
During the year the government tightened existing limits for a number of key
parameters regulated under the petrol and diesel standards, and introduced new
limits. From 1 January 2005:
• sulfur levels in all grades of petrol were limited to 150 milligrams per kilogram
• all grades of petrol are to have a maximum final boiling point of 210 degrees
Celsius
• the olefin content of petrol was limited to a flat maximum of 18 per cent in all
grades
• the aromatics content in all grades of petrol will drop to 42 per cent
(pool average) with a cap of 45 per cent.
Limits for a number of parameters under the biodiesel standard also came into
force on 18 September 2004 including limits relating to glycerol, metals, alcohol,
total contamination, cetane number, and oxidation stability. The biodiesel standard
will ensure that quality fuel is supplied to the marketplace, ensuring vehicle
operability and emissions outcomes.
The Fuel Quality Standards Act 2000 was reviewed during the year. The review
concluded that the overall policy objectives of the Act are being met and should
not be altered, but recommended that a number of issues should be addressed to
facilitate nationally consistent standards, strengthen the monitoring, compliance
and enforcement programme, and simplify administration of the Act, in particular
the current approvals system for variations to standards.
A full report on the operation of the Act including details of the outcomes of the
review appears in the second volume of this set of annual reports.
Reducing diesel emissions

As part of the Australian Government’s Measures for a Better Environment
programme the department supports in-service emissions testing for diesel and
petrol vehicles through funding agreements with the states and territories. Funding
agreements have been entered into with the Roads and Traffic Authority of New
South Wales, the Brisbane City Council and the South Australian Department of
Transport and Urban Planning. During the year the department signed similar
37
Air pollution
agreements with the Western Australian Department of the Environment

($2.3 million over three years) and the Environment Protection Authority Victoria
($4.7 million over three years). Negotiations are currently under way with Tasmania.
The diesel emissions testing must be connected with the implementation of the
National Environment Protection (Diesel Vehicle Emissions) Measure. The goal of
this measure is to reduce exhaust emissions from diesel vehicles consistent with
emissions standards. Developing in-service emission testing facilities helps to
promote compliance with the standards.
The facilities will also help heavy vehicle users claim conditional excise credits
for diesel. The Australian Government’s energy white paper Securing Australia’s
Energy Future announced the introduction from 1 July 2006 of conditional excise
credits for users of heavy diesel vehicles who can demonstrate that their vehicle is
not a high polluter. One of the five permissible criteria for eligibility is to pass the
in-service emission standard referred to in the National Environment Protection
(Diesel Vehicle Emissions) Measure.
Ozone layer protection

Some chemicals used by industry for applications such as refrigeration, air
conditioning, foam production and fire protection deplete the Earth’s stratospheric
ozone layer. Ozone depletion allows biologically harmful ultra-violet rays to reach
the Earth’s surface. Under the Montreal Protocol to the Vienna Convention for
the Protection of the Ozone Layer countries have agreed on dates for phasing out
ozone depleting substances. As understanding of ozone depletion has improved,
countries have added to the list of controlled substances and brought forward the
phase-out dates, most recently through the Beijing Amendment to the Montreal
Protocol.
Although experts predict the ozone layer will recover, this will only be achieved
by full compliance with the Montreal Protocol. Australia accounts for less than
1 per cent of the global emissions of ozone depleting substances. The single
most effective way to protect the ozone layer over Australia is to secure global
compliance with the protocol.
The department represents Australia on the protocol’s Implementation Committee,
which works to promote compliance. Australia also contributes funding through
AusAID to the protocol’s Multilateral Fund. This fund aims to help developing
countries comply with the protocol. Significant reduction targets began to apply to
developing countries in 2005. As part of its contribution to the fund the department
manages projects to help phase out ozone depleting substances in neighbouring
countries.

Air pollution
To phase out the use of ozone depleting substances in Australia the department
implements the Ozone Protection and Synthetic Greenhouse Gas Management
Act 1989. The Act controls the supply (import, export and manufacture) and use
of ozone depleting substances and certain greenhouse gases through a licensing
system.
Imports of ozone depleting substances (1997–present)

Total imports in 2004 = 296.6 tonnes
)MPORTTONNESOFOZONEDEPLETING

!USTRALIAS-ONTREAL0ROTOCOLLIMIT
!USTRALIASIMPORTS

SUBSTANCES

9EAR
Data is updated by calendar year.
There is no domestic manufacture of ozone depleting substances, hence the

overall decline in imports since 1999 (chart above) indicates that Australia’s
net consumption of ozone depleting substances is reducing over time. The
department’s regulation of imports consistently exceeds Australia’s obligations
under the Montreal Protocol (upper line in the chart).
The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989
establishes the Ozone Protection and Synthetic Greenhouse Gas Account, which is
funded from levies and licence fees. The department uses this account to pay for
administration of the Act and related projects, including the National Halon Bank
which collects halon for disposal or reuse. Other projects include the preliminary
work for the establishment of the refrigeration and air conditioning board and fire
protection industry board. The latter is developing and codifying competencies to
implement a licensing system for technicians. These projects are funded under the
Australian Government’s Measures for a Better Environment programme to give
technicians the skills and experience to minimise emissions of environmentally
harmful substances when they install and service equipment.
Approximately 350 tonnes of ozone depleting substances were destroyed at the
National Halon Bank. This amount included destruction of
320 tonnes of refrigerant recovered through Refrigerant Reclaim, Australia’s
39
Air pollution
industry based product stewardship scheme; four tonnes of halons and

chlorofluorocarbons imported for destruction from New Zealand by DASCEM Pty Ltd;
and 16 tonnes of contaminated halon and refrigerants collected for destruction by
the Australian Government.
A full report on the operation of the Act appears in the second volume of this set of
annual reports, including progress in developing new Regulations and in ratifying
the Beijing Amendment.
Industries that use or have used ozone depleting substances often replace them
with synthetic greenhouse gases that could contribute to global warming. The
department is working with the United States and New Zealand under the Climate
Action Partnerships programme to develop ways to manage refrigerant gases with
a high potential to increase global warming, in particular hydrofluorocarbons and
sulfur hexafluoride.
The department also works to minimise emissions of synthetic greenhouse gases
other than those covered by the Ozone Protection and Synthetic Greenhouse Gas
Management Act 1989. Projects include developing sulfur hexafluoride handling
guidelines for the electricity supply industry, and developing an alternative cover
gas for magnesium production.
See also: effects of ozone depletion, page 183.

Air pollution
Programme administration
Cycle Connect
Number of projects or activities approved under 6 projects

each programme
Degree to which projects, activities, agreements or High—increased bicycle storage capacity, targeted
plans contribute to the output areas of high demand and improved management
Air Quality Management

each programme
Degree to which projects, activities, agreements or High—provided information used to inform the
plans contribute to the output design of a national air quality database, the
Launceston Clean Air Industry Programme and a
new approach to woodheater emission standards
Both programmes
Accurate and timely approval, payment and Grants disbursed subject to achievement of funding
acquittal of grants in accordance with legislation agreement milestones
and guidelines
Accurate and timely payment of monies Correct invoices paid promptly
Ozone Protection and Synthetic Greenhouse Gas Account (Administered item)
The Australian Government’s obligations under All obligations met. Halon stocks were managed to
the Ozone Protection and Synthetic Greenhouse Gas ensure availability of strategic reserves for 30 years,
Management Act 1989 are met, including effective with excess quantities collected from the community
administration of the Act, management of the for destruction. Phase-out and emission minimisation
Halon Bank, and programmes to phase out ozone programmes focused on implementation of
depleting substances and minimise emissions Regulations controlling the sale, purchase, use,
of ozone depleting substances and synthetic storage and destruction of ozone depleting
greenhouse gas substances in the fire protection and refrigeration
and air industries. See also: report on the operation
of the Ozone Protection and Synthetic Greenhouse Gas
Management Act 1989 in the second volume of this
set of annual reports.
41
Air pollution
Ozone Protection and Synthetic Greenhouse Gas Account continued ...
Licence and enforcement actions are undertaken All enforcement actions, including remedial
within statutory timeframes, supplies of essential measures, were undertaken in accordance with the
use halon are provided within the requested compliance and enforcement plan. Re licensing: see
timeframe and number of facility inspections meets ‘statutory administration’ below. All halon requests
local ordinance requirements, and a phase-out and were met within the requested delivery timeframe.
emission minimisation programme is commenced Halon Bank facility inspections indicated the bank
was operating within its licence requirements and
meeting all local ordinance requirements.
Statutory administration
Extent to which statutory timeframes are met under High—all permit applications were processed within
legislation statutory timeframes
Number of permits or applications considered 138 licences granted (no refusals) under the
(granted and refused) under legislation Ozone Protection and Synthetic Greenhouse Gas
Management Act 1989 (see also: report on the
operation of this Act in the second volume of this set
of annual reports)
15 licences granted (no refusals) under the Fuel
Quality Standards Act 2000 (see also: report on the
operation of this Act in the second volume of this set
of annual reports)
Extent to which stakeholders meet legislative High—all enforcement actions, including remedial
requirements measures, undertaken in accordance with the
compliance and enforcement plan
International
Percentage of written pre-meeting objectives at 100%

international meetings achieved
Extent to which Australia’s strategic objectives are High—All cables from delegations indicated that
achieved through international forums Australia’s objectives were achieved.
Stakeholder awareness
Information and education products distributed to Various air pollutant fact sheets published
stakeholders (measured by web site hits, information (see www.deh.gov.au/atmosphere/publications)
material distributed, etc)
Average of 16 347 user sessions per month to the
atmosphere-related part of the department’s web
site
Research, analysis and evaluation
Number of research reports, articles and papers 1 report on unflued gas appliances and air quality
prepared and publicly released in Australia

Air pollution
Other annual reports—more detailed results
Annual report on the operation of the Ozone Protection and Synthetic Greenhouse
Gas Management Act 1989 included in the second volume of this set of annual
reports
Annual report on the operation of the Fuel Quality Standards Act 2000 included in
the second volume of this set of annual reports
Legislation
Fuel Quality Standards Act 2000
National Environment Protection Council Act 1994
National Environment Protection Measures (Implementation) Act 1998
Ozone Protection and Synthetic Greenhouse Gas Management Act 1989
Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995
Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995
Resources
Element of pricing Budget prices(1) Actual expenses
$’000 $’000
Output 1.1: Atmosphere 14 723 14 087
Administered items
Ozone Protection and Synthetic Greenhouse Gas Account 2 870 2 209

(1)
43
Biodiversity, or biological diversity, means the variety of life at all scales, including
the variety of genes, of types within species, of species, and of ecosystems. There
are currently between 1.5 to 1.8 million named species in the world, about half of
which are insects. No one knows how many species are still to be discovered and
efforts to estimate the total number of species on the planet reflect this uncertainty.
We do know that biodiversity is not evenly distributed across the different groups
of plants and animals and regions. For example, some 20 per cent of described
species are beetles and 70 per cent of the world’s species occur in only
12 countries. Australia is one of these ‘mega-diverse’ countries.
The Department of the Environment and Heritage aims to protect biodiversity,
including wildlife and their habitats, and works to ensure that Australia’s use of
biological resources is ecologically sustainable.
Biodiversity conservation framework

Land, Water and Coasts
Maintaining Australia’s biodiversity hotspots
Division
Threatened species recovery
Threatened species protection

Approvals and Wildlife
Whale protection
Division
Wildlife trade regulation
Genetic resource management

Parks Australia Division
Australian Biological Resources Study

Objectives
• To conserve biodiversity, focusing on Australia’s biodiversity hotspots and
threatened species
• To protect wildlife by ensuring the management of wildlife industries is
ecologically sustainable and by regulating imports and exports of wildlife
• To develop an effective legal framework for managing access to genetic resources
• To increase understanding of biodiversity
Main results
• The first projects funded under the Maintaining Australia’s Biodiversity
Hotspots Programme will protect habitat in Queensland and South
Australia—total funding of $36 million over 2004–2007 allows the government
to target highly threatened areas and species across Australia, complementing
the department’s longer-term work to protect threatened species
• 67 new recovery plans for threatened species and ecological
communities were approved
• The great white shark is now protected internationally and trade in its
products is regulated under the Environment Protection and Biodiversity
Conservation Act 1999
Biodiversity conservation framework

At the international level the department represents Australia in the United
Nations Convention on Biological Diversity. Current priorities include negotiating
an international regime on managing genetic resources (see ‘Genetic resource
management’, page 54).
Within Australia, Australia’s state and territory governments are legally responsible
for many activities that affect whether biodiversity is conserved. Through the
Minister for the Environment and Heritage the department supports the work of
the Natural Resource Management Ministerial Council (a council of government
ministers responsible for collective national decisions about the conservation
and sustainable use of Australia’s natural resources) to develop national plans to
conserve biodiversity.
Departmental project work is funded in part through the national component of
the Natural Heritage Trust. The $3 billion Natural Heritage Trust is the Australian
Government’s main programme for conserving biodiversity.
45
Review of engagement with the Convention on Biological Diversity

During the year the department completed a review of Australia’s interests and
priorities in the Convention on Biological Diversity. The review focused on ways
to handle the convention’s expanding agenda and ways to manage cross-cutting
issues such as trade and the environment, and agricultural biodiversity. Out of the
review the department achieved a whole-of-government strategy for engaging with
relevant government departments on the Convention on Biological Diversity over
the next two years.
National Biodiversity and Climate Change Action Plan

The department worked with state and territory officials to develop detailed
implementation plans to achieve the objectives of the 2004–2007 National
Biodiversity and Climate Change Action Plan. An Australia-wide inventory of
government activities aimed at addressing climate change impacts on biodiversity
was compiled. A report will be provided to the Natural Resource Management
Ministerial Council in early 2006 to identify how to address any gaps in the
implementation of the plan.
In June 2005 the department hosted a workshop to identify information gaps
and research needs for the plan. The workshop raised awareness of the research
challenges in addressing climate change impacts on biodiversity. The workshop’s
report will inform Australian Government research priorities.
Maintaining Australia’s biodiversity hotspots

Biodiversity hotspots are areas that are rich in
biodiversity but under threat. Australia’s 15 national
biodiversity hotspots were announced in October 2003
(see map opposite). On 20 August 2004 the Prime
Minister announced the Maintaining Australia’s
Biodiversity Hotspots Programme. This programme
protects biodiversity values in hotspots by providing
incentives to landholders and assisting conservation
groups to purchase land to be managed for
conservation (see www.deh.gov.au/biodiversity/
hotspots). The first two initiatives funded under the
programme were:
High Peak, Brooklyn Station
• $4.5 million to buy Brooklyn Station in far north
Photo: R Woldendorp
Queensland (left). This is a diverse property of 60 000
hectares supporting more than 290 bird species. These
species include the endangered buff-breasted button
quail, which is endemic to north-eastern Queensland.

• $1.5 million to establish stewardship agreements with private landholders in the
eastern Mount Lofty Ranges in South Australia. The arrangements will protect grassy
woodland communities, among the most threatened ecosystems in Australia.
Total funding of $36 million over 2004–2007 will allow the government to target
investment in areas with significant biodiversity values and where conservation
action will be timely and cost-effective. This will complement the department’s
longer-term work to protect matters of national environmental significance.
Australia’s biodiversity hotspots
%INASLEIGHAND$ESERT5PLANDS
"RIGALOW.ORTHAND3OUTH
"ORDER2ANGES.ORTHAND3OUTH
-IDLANDSOF4ASMANIA
6ICTORIAN6OLCANIC0LAIN
3OUTH%ASTOF3OUTH!USTRALIA
AND3OUTH7ESTOF6ICTORIA
-T,OFTY+ANGAROO)SLAND
&ITZGERALD2IVER2AVENSTHORPE
"USSELTON!UGUSTA
#ENTRALAND%ASTERN!VON7HEAT"ELT
-OUNT,ESUEUR%NEABBA
'ERALDTONTO3HARK"AY3AND0LAINS
#ARNARVON"ASIN
(AMERSLEY0ILBARA
.ORTH+IMBERLEY

See also: biodiversity hotspots in South East Asia–Pacific region, page 97.
Threatened species recovery

The Australian Government’s main tool for protecting threatened species is the
Environment Protection and Biodiversity Conservation Act 1999. Under the Act
the department is working to prevent threatened species from becoming extinct
and to recover their populations. This includes addressing key threats such as
pests, weeds and diseases.
As part of this work the department develops recovery and threat abatement
plans. Recovery plans set out the actions needed to maximise the chances of
long-term survival in the wild of a threatened species or ecological community.
Threat abatement plans set out the actions needed to reduce the impacts of key
threatening processes on affected native species or ecological communities. The
plans must come into force within certain time limits, which are set out in the
Environment Protection and Biodiversity Conservation Act 1999.
47
During the year the Minister for the Environment and Heritage approved 67
recovery plans under the Act, increasing the total number of recovery plans in
force to 216, covering 303 species and ecological communities. A further 514
species and communities have plans in place or in preparation. This brings
the total number of species and communities covered by plans in place or in
preparation to 817, or 51 per cent of the total requiring recovery plans. A priority is
to complete recovery plans for species in Commonwealth areas.
A full report on the operation of the Act including progress in developing recovery
and threat abatement plans appears in the second volume of this set of annual
reports.
Project work for the department’s threatened species activities is funded partly
through the national component of the Natural Heritage Trust. During 2004–05
$2.2 million was spent from the national component of the Natural Heritage Trust
on developing and implementing plans to recover terrestrial threatened species,
with $2.8 million spent on strategic research and the development of national
approaches to abating key threats, and on control methods for invasive species.
See also: migratory and marine species, page 66; marine pests, page 65; Senate
report on invasive species, page 205.
Threatened Species Network

The department supports the Threatened Species Network, a community based
programme of the Natural Heritage Trust and World Wide Fund for Nature (WWF)
Australia. The network comprises a team of people who support projects that
enable all Australians to be involved in hands-on conservation. The network’s
projects are funded through the Natural Heritage Trust’s Threatened Species
Network Community Grants Programme.
The network’s activities during the year benefited over 260 species and ecological
communities listed under the Environment Protection and Biodiversity
Conservation Act 1999. This included developing 35 new projects that were
funded under the grants programme. The network also provided advice on
threatened species to over 70 advisory panels, recovery teams, and assessment
panels. In addition, the network has been able to survey 144 492 hectares
and conserve 122 116 hectares through habitat management such as fencing,
revegetation, translocation and weed and predator control.
The Australian Government announced a further three years of funding for the
Threatened Species Network and its community grants programme, totalling over
$4.5 million.

Weeds
The department jointly manages the $40 million Defeating the Weed Menace
Programme with the Department of Agriculture, Fisheries and Forestry. The
Department of the Environment and Heritage is managing 18 of the 30 projects
funded from the Defeating the Weed Menace Programme in 2004–05. During
2004–05 $1.1 million was spent from the programme on research and development
into weed biology and potential management techniques, the development and
monitoring of weed biological control agents, the development of best practice
management guides for several weed species, and targeted on-ground weed
control actions.
The department also managed 29 projects totalling $1.8 million funded through
the national component of the Natural Heritage Trust. These projects supported
national coordination for each of the weeds of national significance; research and
development; and education and awareness activities.
Cane toads
Cane toads could invade Western Australia and spread as far south as Margaret
River. The department is supporting a joint Australian–Western Australian
government task force, including leading scientists, to reduce this risk. A joint work
programme (including actions by the Northern Territory Government) will begin
later in 2005.
To date the Natural Heritage Trust has invested over $2.7 million in developing
cane toad controls, including research by CSIRO to develop a biological control
agent. While work in this area is showing promising results, the Australian
Government is also funding research into the development of controls that will be
available within a few years and which will provide local level control measures.
Tasmanian devil facial tumour disease

The Australian Government has committed $2 million over two years (2005–2006)
to accelerate research into the Tasmanian devil facial tumour disease. First detected
in Tasmania in the mid-1990s, the disease is a fatal cancer that has killed some
30–50 per cent of the wild population of Tasmanian devils. The cause and means
of transmission are unknown. The Tasmanian Government has developed a
management plan and research priorities for the disease, which will be supported
by the Australian Government funding.
49
‘Extinct’Tammar wallabies recovering

The department supported a South Australian Government project to return 40
Tammar wallabies from a mainland subspecies that was previously thought to
be extinct to Innes National Park in South Australia. The release was possible
because a population of the wallabies was established in New Zealand over 100
years ago. Following their return to South Australia a core population of wallabies
was established at Monarto Zoological Park near Murray Bridge. It now stands at
84 wallabies as a result of successful breeding. The department spent $0.2 million
from the national component of the Natural Heritage Trust on this project during
2004–05, bringing the total Australian Government expenditure to $0.5 million.
Threatened species protection

Under the Environment Protection and Biodiversity Conservation Act 1999 actions
that are likely to have a significant impact on matters of national environmental
signficance, including listed threatened species and communities and listed
migratory species, require approval.
Activities that may affect listed species or communities in Commonwealth areas
(land and waters) may require permits. During 2004–05 the government issued
17 species and communities permits. Details of these and other activities relating to
the protection and conservation of threatened species are included in the report on
the operation of the Environment Protection and Biodiversity Conservation Act 1999
in the second volume of this set of annual reports.
The department is continuing to develop projects to support landholders in
protecting matters of national environmental significance and in meeting their
obligations under the Act. For example in 2004–05 the department, in collaboration
with a local council, undertook a project to map and identify the threats to a listed
threatened species, the leafy greenhood orchid, on the Mornington Peninsula.
This project will provide improved information on best practice natural resource
management to help conserve the species within the area.
Project work relating to the protection of listed threatened species and ecological
communities is partly funded through the national component of the Natural
Heritage Trust. During 2004–05 Natural Heritage Trust project expenditure for these
activities was approximately $1.8 million.

Whale protection
The Australian Government takes a strong stand on protecting whales and
dolphins. The Environment Protection and Biodiversity Conservation Act 1999
establishes the Australian Whale Sanctuary in Commonwealth waters. The
Act also regulates how people should behave around whales and dolphins in
Commonwealth marine areas and waters beyond the Australian Whale Sanctuary.
During the year the minister approved recovery plans for the five Australian whale
species listed as threatened under the Act: blue, southern right, humpback, fin
and sei whales. Recent data indicate that southern right and humpback whale
populations, while still much lower than pre-whaling numbers, are increasing.
The Australian southern right whale population is currently approximately 1 500
individuals and the Australian humpback whale population is approximately
18 500 individuals. Both species are increasing at around 7–11 per cent per year.
There are no current estimates for the abundance of Australian blue, fin or sei
whales.
The department is developing a database to record whale and dolphin sightings
and strandings. During the year the department began a consultative process to
update the national whale watching guidelines. The third national large whale
disentanglement workshop was held to provide information and training on safe
methods for disentangling large whales from fishing gear and marine debris.
Details of these and other whale and dolphin protection activities (including new
draft seismic survey guidelines) are included in the report on the operation of the
Environment Protection and Biodiversity Conservation Act 1999 in the second
volume of this set of annual reports.
Project work for whale and dolphin research and conservation activities is
partly funded through the national component of the Natural Heritage Trust.
During 2004–05 approximately $0.4 million was spent to improve knowledge of
distribution, abundance and habitat requirements of whales and dolphins, and on
other activities such as the development of a protocol for taking scientific samples
from dead stranded whales and dolphins.
See also: international whaling, page 177.
51
Wildlife industry regulation

The Australian Government helps to protect Australia’s native wildlife from over-
exploitation by regulating wildlife exports and assessing wildlife industries under
the Environment Protection and Biodiversity Conservation Act 1999 (see chart
below). Imports of wildlife and wildlife products are also regulated under the
Act. The Australian Government uses its regulatory powers to encourage better
management practices and to promote animal welfare. A key aim is to make sure
wildlife industries are ecologically sustainable.
Wildlife trade programmes approved (2002–present)

Number approved to date = 229

#UMULATIVETOTALNUMBEROF
PROGRAMMESAPPROVED

9EAR
Programmes are approved under the Environment Protection and Biodiversity Conservation Act 1999. Results
for 2001–02 are from January 2002. The relevant provisions of the Act commenced on 11 January 2002.
The department also conducts assessments of all fisheries whose products are
exported. Since 2000 the Australian Government has used the assessment process
to drive improvements in fisheries management by identifying what additional
environmental protection measures need to be put in place. As required under the
Environment Protection and Biodiversity Conservation Act 1999, strategic assessment
of the 15 Commonwealth-managed fisheries and the eight Torres Strait fisheries was
commenced within five years of the Act coming into force. To 30 June 2005 12 of these
had received export approvals, seven in 2004–05. An additional 43 state-managed
fisheries also received export approvals in 2004–05, bringing the total number of
fisheries assessments undertaken in 2004–05 to 50 (chart at top right opposite).
The Environment Protection and Biodiversity Conservation Act 1999 regulates
the import and export of specimens of species protected under the Convention
on International Trade in Endangered Species of Wild Fauna and Flora (usually
called CITES), exports of specimens of species native to Australia, and imports
of live specimens, in order to protect internationally endangered wildlife and

Fisheries assessed (2000–present)
Number assessed to date = 88


FISHERIESASSESSED

9EAR
Assessments are carried out under the Environment Protection and Biodiversity Conservation Act 1999.
Australia’s environment. The slight reduction in the number of permits issued in

2004–05 (chart below) is due to streamlining measures being undertaken that allow
more traders to take up the option of a multiple use permit. In addition the figures
shown do not include personal accompanied baggage permits—19 418 personal
baggage permits were issued in 2004–05.
Wildlife export and import permits issued (2002–present)

Number issued in 2004–05 = 3 284

.UMBEROFPERMITSISSUED

EACHYEAR

9EAR
Permits are issued under the Environment Protection and Biodiversity Conservation Act 1999. Results for
2001–02 are from January 2002. The relevant provisions of the Act commenced on 11 January 2002.
The department works closely with other agencies to share intelligence and
combat wildlife smuggling (chart on next page). These agencies include state and
territory wildlife authorities, the Australian Customs Service, the Australian Federal
Police, the wildlife authorities of other member countries of CITES, Interpol, and
some non-government organisations, such as TRAFFIC.
53
Seizures of illegally imported wildlife specimens (2002–present)

Number of seizures in 2004–05 = 3 902

.UMBEROFSEIZURESEACHYEAR

9EAR
Seizures are carried out under the Environment Protection and Biodiversity Conservation Act 1999. Results for
2001–02 are from January 2002. The relevant provisions of the Act commenced on 11 January 2002.
Details of these and other wildlife trade activities are included in the report on the
operation of the Environment Protection and Biodiversity Conservation Act 1999
in the second volume of this set of annual reports.
Project work relating to wildlife trade regulation is partly funded through the
national component of the Natural Heritage Trust. During 2004–05 Natural Heritage
Trust project expenditure for these types of activities was approximately $0.9 million.
Genetic resource management

The Australian Government foreshadowed regulating access to genetic resources
in Commonwealth areas in its July 2000 National Biotechnology Strategy. In
October 2002 the Natural Resource Management Ministerial Council signed an
intergovernmental agreement to:
position Australia to obtain the maximum economic, social and

environmental benefits from the ecologically sustainable use of its genetic and
biochemical resources whilst protecting our biodiversity and natural capital.
As part of this agreement each Australian jurisdiction is establishing a legal

framework for accessing and using genetic resources. The department is
working with state and territory governments to ensure jurisdictional approaches
are nationally consistent. The department is responsible for developing
Commonwealth Regulations under the Environment Protection and Biodiversity
Conservation Act 1999.
National coordination work is funded under an agreement with Biotechnology
Australia ($2 million over 2004–2008). During 2004–05 a Biodiscovery Working

Group was established with members representing federal, state and territory
government agencies. The working group is assisting with the coordination of
jurisdictional approaches to regulating biodiscovery (taking samples from native
animals, plants or microbial life to study their genetic and biochemical make-
up). The department has been preparing amendments to Regulations under the
Environment Protection and Biodiversity Conservation Act 1999 concerning
access to biological resources. With the states and territories proceeding with
similar legislation, the working group’s task is integral to establishing effective
national management of Australia’s unique genetic diversity.
The department also participated in negotiations on an international regime for
managing genetic resources under the Convention on Biological Diversity. As a
result of consistent international leadership on the issue Australia was chosen in
February 2005 to co-chair the first round of the negotiations.
Collectively these activities are expected to result in a legal framework that will
safeguard Australia’s biodiversity from unsustainable collection practices, provide
legal certainty to researchers, and enable jurisdictions to share in the benefits
flowing from new discoveries.
Agreement with J Craig Venter Institute

On 4 November 2004 the department signed a biodiscovery agreement with
the J Craig Venter Institute to allow public-good access to Australia’s genetic
resources for research and development. The agreement is significant because it
provides access to Australian biodiversity in Commonwealth areas, and ensures
fair and equitable sharing of the benefits that arise from their non-commercial use.
Australia’s status as a scientifically advanced, mega-diverse nation makes it the
ideal partner for the institute’s quest to define the diversity of life. The agreement
between the Commonwealth of Australia and the Venter Institute is consistent with
the forthcoming regulatory amendments under the Environment Protection and
Biodiversity Conservation Act 1999, which will facilitate future access and benefit-
sharing enterprises.
Australian Biological Resources Study

(Administered item)
The Australian Biological Resources Study funds taxonomic and biogeographic
research and training that lead to the scientific documentation of Australia’s
biodiversity. Total expenditure under this programme was $1.8 million in 2004–05.
Funding supported 61 taxonomic research projects, four scholarships, 14 student
bursaries and a number of small research contracts. Results will contribute to
55
future publications such as Flora of Australia, and expand existing online sources
of information including the Australian Faunal Directory and Flora of Australia
Online (see www.deh.gov.au/biodiversity/abrs).
Taxonomic investigations included research into such diverse biota as zooanthellae
(miroalgae), smut fungi, sea anemones, flatworms, kangaroo beetles and orchids,
and added new information to existing databases about groups of environmental
or economic significance, such as wood borers, earthworms, tapeworms, reptiles
and minor marine phyla.
The Australian Biological Resources Study published five books and three
CD-ROMs this year, and also published new and updated online biodiversity
information. Work continued on the development of the Australian Biodiversity
Information Facility data portal gateway that will provide real-time access to a
wide range of biodiversity data held and maintained by individuals and institutions
throughout Australia. An online biodiversity analysis tool was developed for this
portal. The project was funded in part by a grant from the Global Biodiversity
Information Facility.

Threatened Species Recovery (See also Natural Heritage Trust annual report)
Number of projects or activities approved under 15 contracts for recovery plan development and
each programme implementation
Number of agreements, plans and management 67 recovery plans approved

arrangements put in place
Degree to which projects, activities, agreements or High—identified and funded management priorities
plans contribute to the output for nationally threatened species
Threat Abatement of Invasive Species (See also Natural Heritage Trust annual report)

each programme
Degree to which projects, activities, agreements or High—developed better ways to detect and control
plans contribute to the output significant invasive species, raise awareness of
invasive species, and develop best practices to
manage invasive species impacts

Programme administration continued ...
National Weeds Programme (See also Natural Heritage Trust annual report)

each programme
Number of agreements, plans and management 29 agreements

Degree to which projects, activities, agreements or High—contributed to the improved management of

plans contribute to the output weeds of national significance
Native vegetation
Number of agreements, plans and management 2 arrangements (National Biodiversity and

arrangements put in place Climate Change Action Plan and memorandum of
understanding and project implementation for the
Defeating the Weed Menace Programme)
Degree to which projects, activities, agreements or High—contributed to better management of weeds

plans contribute to the output and addressing the impacts of climate change
Biodiversity Hotspots
Number of projects or activities approved under 2 contracts

each programme
Degree to which projects, activities, agreements or High—provided incentives for biodiversity

plans contribute to the output conservation
All programmes
Extent to which (self-imposed, ministerial or High—timeframes met in accordance with

external) timeframes are met departmental standards
Accurate and timely approval, payment and Funding was provided under financial agreements
acquittal of grants in accordance with legislation that reflect accountability, reporting and acquittal
and guidelines procedures
Accurate and timely payment of monies 100% of payments made in accordance with terms
and conditions of financial agreements
Australian Biological Resources Study (Administered item)
The Australian Biological Resources Study is Projects supported Australia’s national research
administered and managed according to best priorities with a particular focus on lesser-known
practice, and supports taxonomic investigations into groups. Taxonomic investigations included research
species or ecosystems of national priority into marine flatworms, an important group of
marine invertebrates.
Number and value of 2004–05 grants and contracts 62 research grants were offered and 61 funded
offered and funded by 30 June 2005
A total of $1.827 million was spent on research
grants, contracts, scholarships and bursaries
57
Extent to which statutory timeframes are met under High— see report on the operation of the
legislation Environment Protection and Biodiversity Conservation
Act 1999 in the second volume of this set of annual
reports
Number of permits considered (granted and 17 species and communities permits (none refused)
refused) under legislation
3 284 import and export permits (12 refused)
19 418 personal baggage permits
See also report on the operation of the Environment
Protection and Biodiversity Conservation Act 1999 in
Number of referrals considered under legislation See report on the operation of the Environment
Number of plans or arrangements assessed under 67 recovery plans approved (61 for terrestrial species
legislation and ecological communities, 3 for cetaceans and 3
for other marine species)
50 fisheries assessments undertaken
Extent to which stakeholders meet legislative High

requirements
International
Percentage of written pre-meeting objectives at 90%—Australia’s key policy objectives under the
international meetings achieved Convention on Biological Diversity met; several non-
key objectives partly met
Extent to which Australia’s strategic objectives are High—strategic objectives met for Convention on
achieved through international forums Biological Diversity; majority of objectives met for
13th Conference of the Parties for Convention on
International Trade in Endangered Species of Wild
Fauna and Flora (CITES), including nomination of the
great white shark, opposition to commercial whale
trade, and a review of CITES scientific committees

Information and education products distributed to 20 000 hard copies of 2 editions of Bush Magazine
stakeholders (measured by web site hits, information distributed plus 4 993 electronic copies via web site
1 956 posters distributed on amphibian chytrid
fungus, phytophthora root rot, beak and feather
disease of parrots, and the impacts of other invasive
species
5 000 copies of National Action Plan for Climate
Change and Biodiversity distributed
2 340 copies of Introductory Weed Management
Manual (2nd edition printed May 2005) distributed
33 000 copies of Weed Management Guides (series
of 49 brochures) distributed to more than 500
organisations and individuals
Numerous publications and articles developed and
distributed to relevant stakeholders to increase
knowledge of and compliance with the wildlife
trade provisions of the Environment Protection and
Biodiversity Conservation Act 1999
Sustainable Fisheries’ CatchUp newsletter published
and distributed every 2 months
Responded to 600 on-line enquiries relating to
international wildlife trade
biodiversity-related part of the department’s web site
Number of research reports, articles and papers 13 research and development reports on threats
prepared and publicly released and threatened species
59

Annual report on the operation of the Environment Protection and Biodiversity
Conservation Act 1999 included in the second volume of this set of annual reports
Annual report of the Natural Heritage Trust at www.nht.gov.au/publications. The
department’s performance in administering the Natural Heritage Trust is reported
on page 158.
Legislation
Environment Protection and Biodiversity Conservation Act 1999
Natural Heritage Trust of Australia Act 1997
Resources
$’000 $’000
Sub-output: Biodiversity 11 415 12 936

Sub-output: Wildlife protection and trade 14 106 13 170
Total (=Output 1.2: Biodiversity) 25 521 26 106
Administered items
Protecting Australia’s Biodiversity hotspots 11 000 3 671

Australian Biological Resources Study Participatory Grants Programme 1 827 1 827

(1)

Coasts and oceans
The Department of the Environment and Heritage contributes to the ecologically

sustainable management of Australia’s coasts and oceans.
• Coastal zone management framework Land, Water and Coasts

• Coastal water quality and wetlands conservation Division
• Marine pest management framework

• Migratory species protection
• Marine species protection
Marine Division (includes
• Reef fisheries adjustment package
the National Oceans
• Marine protected areas
Office)
• Australia’s Oceans Policy
• International marine conservation
• Regional marine plan
Natural Resource
• Coastcare (a theme of the Natural Heritage Trust) Management Programmes
Division
Objectives
• To support a national approach to integrated coastal management
• To develop ways to protect and improve coastal water quality, including the water
quality of the Great Barrier Reef
• To develop a national approach to controlling introduced marine pests
• To protect migratory and marine wildlife
• To develop regional marine plans and use them to identify new marine protected areas
• To consolidate knowledge about marine biodiversity
61
Coasts and oceans
Main results
• Australian governments signed off on agreements for dealing with issues
related to coastal development and introduced marine pests
• The Australian Government supported the rezoning of the Great
Barrier Reef Marine Park by buying out commercial fishing licences and
approving restructuring assistance for fishing businesses
• Implementation of Australia’s first regional marine plan, the South-east
Regional Marine Plan, began, including the release of the Kooyang Sea
Country Plan
• The scoping phase of the Northern Marine Plan was finalised
• Major marine surveys off northern Australia helped build the knowledge
base needed to ensure marine activities are ecologically sustainable
Coastal zone management framework

The department is working with all levels of government to address nationally
important coastal issues. This work comes under the Framework for a National
Cooperative Approach to Integrated Coastal Zone Management. The framework is
an agreement by federal, state and territory governments about how to deal with
problems like coastal pollution and marine pests.
The main focus of the department’s activities during the year was working with the
Intergovernmental Coastal Advisory Group to develop an implementation plan for
the framework. The Natural Resource Management Ministerial Council (a council
of government ministers responsible for collective national decisions about the
conservation and sustainable use of Australia’s natural resources) approved the
implementation plan in 2004 subject to the agreement by all jurisdictions. The plan
will operate over the period 2005–2015. All jurisdictions except Western Australia
and Queensland have agreed to the plan.
The main implementation measures for which the department is responsible
include those relating to coastal and estuarine water quality, marine debris,
managing disposal of wastes from recreational vessels, understanding climate
change and planning for population change.
Project expenditure during 2004–05 was $0.1 million from the national component
of the Natural Heritage Trust, on contributions to workshops to help engage local
government and other stakeholders in the process.

Coasts and oceans
Coastal water quality and wetlands conservation
Federal, state, territory and local governments have identified coastal and urban
water quality ‘hotspots’. Water quality hotspots are places like the Parramatta River,
Moreton Bay and Port Phillip Bay, where management action is needed to protect
or improve water quality.
A particular priority for the Australian Government is to protect the Great Barrier
Reef from pollution due to land-based activities in Queensland. An important
aspect of this work is protecting Queensland’s coastal wetlands, which filter the
water entering the Great Barrier Reef lagoon.
The department administers three linked programmes to protect or improve water
quality in these hotspots:
• the Coastal Catchments Initiative
• the Reef Water Quality Protection Plan
• the Queensland Wetlands Programme.
Coastal Catchments Initiative

The Coastal Catchments Initiative aims to protect and improve water quality in
coastal water quality hotspots. Funding administered by the department helps
state agencies, regional bodies and local authorities develop and implement water
quality improvement plans, which set water quality, environmental flow and
management action targets to protect the values of coastal water quality hotspots.
Water quality improvement plans
are prepared in accordance with the
Australian Government’s Framework
for Marine and Estuarine Water Quality
Protection.
In the 2004 Budget, as part of its
commitment to the Reef Water
Quality Protection Plan, the Australian
Government added $9 million from the
Natural Heritage Trust to the Coastal
Wetland regeneration Catchments Initiative. The additional
Photo: N Hardy funding covers the period from 2004–2006.
The Coastal Catchments Initiative is The department is using this funding to
funding priority projects to protect water support water quality improvement plans
quality, such as this tree planting to help
and priority projects (left) in catchments
capture sediment and nutrient in the
Douglas Shire, Queensland. that pose the highest risks to reef water
quality.
63
Coasts and oceans
Water quality improvement plans are also being developed for the Derwent
Estuary (Tasmania), Moreton Bay and for the waterways in the Douglas Shire
(Queensland), Peel Inlet and Harvey Estuary (Western Australia) and Adelaide’s
Port Waterways. During 2004–05 the department completed preparatory work
leading to agreed contracts and startup payments for further water quality
improvement plans, with project work to meaningfully commence in 2005–06.
The plans for the Derwent Estuary, Douglas Shire, Port Waterways and Peel Inlet
and Harvey Estuary are due to be completed during 2005–06. In total eight Coastal
Catchments Initiative hotspots now have plans in preparation.
The Coastal Catchments Initiative also invests in projects that help to overcome
institutional and regulatory barriers to water quality protection and improvement,
that manage growth to prevent additional pollution loads from development,
and that develop models and decision-making tools to support water quality
improvement.
Reef Water Quality Protection Plan

The Reef Water Quality Protection Plan aims to halt and reverse the decline in
water quality entering the Great Barrier Reef by 2013. The department shares
responsibility for implementing the reef plan with other government agencies
and the community. The department’s role is to help to fund activities under the
plan from the national component of the Natural Heritage Trust and from the
Queensland Wetlands Programme (see next section). Major Natural Heritage Trust
projects supporting the reef plan during 2004–05 included:
• tools for measuring water quality improvements ($0.3 million in 2004–05)
• supporting Indigenous involvement ($0.3 million in 2004–05)
• supporting community water monitoring in high risk catchments not covered
by the National Action Plan for Salinity and Water Quality ($0.2 million in
2004–05).
The first annual report for the reef plan was released in February 2005 and is
available at www.deh.gov.au/coasts/publications/annual-report.
An independent audit of the implementation of the reef plan was undertaken
during the year.
Queensland Wetlands Programme

The Queensland Wetlands Programme has two components.
The Natural Heritage Trust Extension Wetlands Programme supports
Queensland in the development and implementation of statutory arrangements to
protect wetlands. The programme provided $1.3 million during 2004–05 to develop

Coasts and oceans
information about Queensland’s wetlands (including comprehensive mapping,
management profiles for wetlands, and analysis of the information available
about Queensland wetlands) and to develop a method for reporting on whether
programme objectives are being met.
The Great Barrier Reef Coastal Wetlands Protection Programme protects
and restores privately owned wetlands in the Great Barrier Reef catchment that
contribute to water quality in the Great Barrier Reef, and that have significant
habitat values. The programme provided $2 million to set up a pilot programme to
engage the community in protecting important wetlands, to help the Queensland
Government acquire wetlands, to develop a decision support system to identify
wetlands for investment, and to produce education products. The Australian
Government allocated $2 million over two years (2004–2006) to implement the
pilot programme. The department contracted delivery of the pilot programme to
a consortium of Conservation Volunteers Australia, Wetland Care Australia, the
CSIRO and the Australian Centre for Tropical Freshwater Research. An independent
reference group was established to advise the consortium about delivering the
pilot programme.
Marine pest management framework

Federal, state and territory government agencies are working to establish a
permanent National System for the Prevention and Management of Introduced
Marine Pest Incursions. The national system is a way for government agencies to
coordinate their efforts to:
• control or eradicate new outbreaks of marine pests
• manage ballast water and biofouling (marine pests encrusted on vessel hulls
and other gear) to prevent outbreaks of new marine pests and to reduce the risk
of pests spreading from existing outbreaks.
At the 8th Natural Resource Management Ministerial Council meeting the Australian,
Victorian, Tasmanian and Northern Territory governments agreed to implement the
national system. Under the agreement governments will establish permanent cost-
sharing and coordination arrangements for responding to new pest outbreaks, pest
control plans, and a coastal regime for managing ballast water and biofouling.
The Australian Government committed $3 million over two years (2004–2006)
from the national component of the Natural Heritage Trust for research and
development necessary to implement the national system. Project expenditure
during 2004–05 was $0.7 million to establish pest control plans and to detect,
identify and reduce the spread of marine pests. A number of specific projects
remain in progress, including:
65
Coasts and oceans
• implementing a control plan for the northern Pacific seastar

• developing genetic probes to enable the efficient detection and identification of
pest species
• continuing to gather long-term performance information on paints that
reduce biofouling on ships and boats, through paint patch trials on Australian
commercial ships.
See also: regional collaborations, page 71.
Migratory species protection

The department works internationally to protect species like waterbirds and turtles
that migrate to other countries. In Australia, the provisions of the Environment
Protection and Biodiversity Conservation Act 1999 apply. The report on the
operation of the Act in the second volume of this set of annual reports has more
details about migratory species protection, including progress with wildlife
conservation plans, bilateral agreements and regional partnerships.
of the Natural Heritage Trust, including funding Australia’s participation in
international meetings.
See also: Agreement for the Conservation of Albatrosses and Petrels, page 176;
Ramsar Convention, page 133.
Marine species protection

The department’s role in protecting threatened species described on page 47
applies in marine environments. The department is on track to have marine
species recovery plans and threat abatement plans in place by the deadlines that
apply under the Environment Protection and Biodiversity Conservation Act 1999.
During the year the great white shark was successfully listed under the Convention
on International Trade in Endangered Species of Wild Fauna and Flora (or CITES)
in the largest ever vote for a marine species nomination. The department is also
investigating whether traditional harvesting of turtles and dugongs is ecologically
sustainable. The report on the operation of the Environment Protection and
Biodiversity Conservation Act 1999 in the second volume of this set of annual
reports has more details about marine species protection, including progress in
recovery and threat abatement plans.
of the Natural Heritage Trust, mainly on recovery plans.
See also: whale protection, page 51; international whaling, page 177.

Coasts and oceans
Reef fisheries adjustment package
(Administered item)
In January 2004 the Australian Government released a policy statement about
providing assistance to fishers, fishing-related businesses and fishing-dependent
communities after the government declares or rezones a marine protected area
(see www.deh.gov.au/coasts/mpa/displaced-fishing.html).
The structural adjustment package provided following the rezoning of the Great
Barrier Reef Marine Park in July 2004 is the first application of this policy. The
department is administering the package, which is aimed at assisting those
adversely impacted by the rezoning, and managing the economic and ecological
impacts of fishing displaced from closed areas. It includes a fishing licence buy-
out scheme, business assistance and access to social support for fishers and others
impacted by the changes.
The Australian Government announced the package on 30 June 2004 and modified
it in August 2004 based on feedback from the fishing industry. The changes
improved access to the package, including by the introduction of a simplified
business restructuring assistance option, and increased the cap on business
restructuring assistance from $0.2 million to $0.5 million per business.
Licence buy-out completed

The department established targets for the fishing licence buy-out with the
assistance of a technical advisory committee that included industry representatives.
The targets were based on reducing commercial catches by an amount equivalent
to that previously taken in areas closed under the rezoning.
Fishing businesses affected by the rezoning offered to sell 583 licences to
government. Following an assessment of offers on 10 December 2004 the
Australian Government agreed to buy 115 commercial fishing licences and four
Reef Quota symbols, or just fewer than 20 per cent of the total on offer, at a
total cost of $32.2 million. Removing this amount of effort gave those businesses
remaining in the industry the best chance of staying viable. Businesses had the
opportunity to appeal government decisions.
Other major components of the package are ongoing. As at 30 June 2005 the
Australian Government had approved $7.6 million in business restructuring
assistance, which will help businesses that remain in the industry to restructure
their operations.
67
Coasts and oceans
Marine protected areas

The department, on behalf of the Director of National Parks, manages an estate of
marine protected areas that are Commonwealth reserves under the Environment
Protection and Biodiversity Conservation Act 1999.
of the Natural Heritage Trust. This funding contributed to the development of new
marine protected areas and the management of the existing marine protected area
network.
Progress with new marine protected areas

Since 1996 the Australian Government has declared six new marine protected
areas, increasing the area of its estate of marine protected areas by approximately
68 per cent. This estate forms part of Australia’s National Representative System
of Marine Protected Areas. Since 2003 the department has been working with
key stakeholder groups to extend the national system through the Australian
Government’s regional marine planning process (see page 71).
With the release of the South-east Regional Marine Plan in May 2004, the Australian
Government proposed two candidate marine protected areas off south-eastern
Australia, with options for further marine protected areas to be developed in
another nine ‘broad areas of interest’.
The department commenced a fishing risk assessment to help determine the
fishing activities that may be permitted in multiple use zones of marine reserves
in the south-east region. This was expected to be completed in October 2005,
enabling the process of working with stakeholders to identify marine protected
areas in the south-east to resume.
Management of existing marine protected areas

Management functions were provided for the existing protected areas; some
functions were delivered by state agencies. The management budget covered key
functions such as research, monitoring, compliance and enforcement.
Details are set out in the annual report of the Director of National Parks
(www.deh.gov.au/about/annual-report).
Australia’s Oceans Policy

The National Oceans Office was brought into the department as part of new
administrative arrangements announced after the October 2004 election
(see page 8). The National Oceans Office continues to implement and develop
Australia’s 1998 Oceans Policy within the department’s Marine Division.

Coasts and oceans
In other changes, the Minister for the Environment and Heritage now takes lead
responsibility for Oceans Policy development, consulting other ministers where
required. The National Oceans Advisory Group (one of the administrative bodies
for the Oceans Policy) now reports to the Minister for the Environment and
Heritage. For more details on the new arrangements see
www.oceans.gov.au/the_oceans_policy_overview.jsp.
National agreement on oceans management

The National Oceans Office is working through the Natural Resource Management
Ministerial Council and its subsidiary bodies to develop:
• national principles that will guide marine planners and managers
• an agreement on marine planning with the states and territories.
At its 7th meeting on 6 December 2004 the Natural Resource Management
Ministerial Council agreed to use a Framework for a National Approach to
Integrated Oceans Management. The framework sets out a cross-jurisdictional
approach to managing Australia’s oceans. It will help governments to coordinate
their activities and work across sectors to deliver ecologically sustainable
development. The framework confirms the Natural Resource Management
Ministerial Council as the lead ministerial council for integrated oceans
management issues across jurisdictions.
Census of Marine Life

Along with participating in the discovery of our marine biodiversity through marine
surveys (discussed under ‘Regional marine plans’ page 71), the National Oceans
Office is also improving access to scientific knowledge about Australia’s oceans.
The National Oceans Office is leading Australian participation in the Census
of Marine Life, an international research programme to assess the diversity,
distribution and abundance of marine organisms due for completion in 2010. The
Sloan Foundation, a philanthropic fund based in the United States, is sponsoring
the programme. With the support of the Sloan Foundation, the National Oceans
Office has established a national steering committee for the census in Australia.
One aspect of the programme is an Ocean Biogeographic Information System,
a distributed database that will allow researchers to depict the distribution and
abundance of marine life in three dimensions.
In December 2004 the National Oceans Office started to develop an Australian
regional node for the Ocean Biogeographic Information System in partnership with
CSIRO Marine Research. The Sloan Foundation is providing $0.2 million to help
establish the Australian node.
See also: Census of Antarctic Marine Life, page 186.
69
Coasts and oceans
Oceans Portal
The National Oceans Office is also developing the Oceans Portal, an internet-based
tool that will provide a one-stop-shop registry of marine data and services. The
portal will include technology and content standards that scientists and managers
can use to integrate multi-disciplinary data.
The portal is being developed through the Australian Ocean Data Centre Joint
Facility, a consortium of CSIRO, Geoscience Australia, the Department of
Defence, the Bureau of Meteorology, the Australian Antarctic Division and the
Australian Institute of Marine Science. The National Oceans Office expects the core
components of the portal will be completed by December 2005.
International marine conservation

The seas and seabed beyond the national jurisdiction of individual countries—the
ocean ‘commons’—contain significant biodiversity, much of it new to science,
diverse, unique and fragile.
Over the past 10 years Australia has consistently called for better international
legal regimes and management measures to conserve high seas biodiversity
and combat illegal, unreported and unregulated fishing. Australia, led by the
department, promotes better high seas management through the United Nations
and other forums including the Convention on Biological Diversity and the World
Conservation Congress.
United Nations
The United Nations General Assembly resolved on 17 November 2004 to establish
a ‘UN Ad Hoc Open-ended Informal Working Group to study the conservation and
sustainable use of marine biological diversity beyond areas of national jurisdiction’.
Australia co-sponsored this resolution and will use this working group to continue
its strong advocacy for a responsible global approach to the conservation of high
seas biodiversity.
At the 6th meeting of the United Nations open-ended Informal Consultative Process
on Oceans and the Law of the Sea (UNICPOLOS) in June 2005, Australia, led by
the department, promoted the need for responsible and sustainably managed high
seas fishing including the need to prevent illegal, unreported and unregulated
fishing, and measures to reduce bycatch of species such as seabirds and cetaceans.
Australia also called for action to address marine debris such as discarded fishing
nets, which can have a devastating impact on marine life. The recommendations
from this process will be passed to the United Nations General Assembly for
international debate and action.

Coasts and oceans
Regional collaborations
Australia is helping to improve the management of the oceans of the region
through the Asia–Pacific Economic Cooperation (APEC) structure. The department
represents Australia on the APEC Marine Resource Conservation Working Group
and runs programmes and workshops to help build capacity and knowledge on
marine conservation throughout the APEC region.
During 2004–05 APEC leaders endorsed a project proposed by Australia to develop
a management framework for introduced marine pests in APEC economies. The
endorsement of the project by APEC leaders confirms the importance of combating
introduced marine pests in the region.
Australia is also assisting regional marine conservation and management through
the Arafura and Timor Seas Experts Forum. This forum is one of Australia’s
major ‘Type II’ partnership initiatives from the World Summit on Sustainable
Development. The forum facilitates cooperative research and better sharing
of information between governments, scientific bodies and non-government
interests in Australia, Indonesia and Timor Leste in order to improve sustainable
management of living marine resources in the region.
Regional marine plans

Under Australia’s Oceans Policy the National Oceans Office is developing regional
marine plans. Regional marine plans will integrate management of the oceans in
order to maintain marine ecosystems and promote sustainable development. This
includes identifying conservation measures such as new marine protected areas
in each offshore region (see page 68). A particular focus of the department’s work
during the year was reviewing the links between regional marine planning and
marine protected areas.
Regional marine plans are underpinned by the best available science, including
major scientific surveys. As part of developing the plans, the National Oceans
Office also compiles relevant social and economic knowledge. The office publishes
the results of surveys and reviews as atlases that can be used to aid a broad
understanding of the region and help in management.
South-east Regional Marine Plan

Australia’s first regional marine plan, the South-east Regional Marine Plan, was
released in May 2004 for an area of about two million square kilometres of ocean
waters off the south-east of the continent.
With 93 actions to be completed over the next 10 years, the National Oceans Office
has developed a web-based progress reporting tool for the South-east Regional
71
Coasts and oceans
Marine Plan. This will streamline monitoring and make information about progress
in implementing the plan easily accessible to the public.
As part of implementing the South-east Regional Marine Plan, the Kooyang Sea
Country Plan was released on 29 April 2005. The plan identifies key values and
management priorities for the local Indigenous communities in a part of south-
western Victoria, including more than 700 hectares in Indigenous protected
areas. The Framlingham Aboriginal Trust and Winda Mara Aboriginal Corporation
prepared the plan. National Oceans Office expenditure on this project was
$0.1 million in 2004–05. Work has started on a second sea country plan for the
Coorong in South Australia.
See also: Indigenous Protected Areas Programme, page 154.
Northern Regional Marine Plan

Northern Australian waters between the Goulburn Islands to the west and the
Torres Strait to the east are the focus of the second regional marine planning
process. The Northern Regional Marine Plan is under development and covers
around 700 000 square kilometres.
The National Oceans Office finalised the scoping phase of the northern marine
planning process with the release of the Northern Scoping Report in September
2004. An expert-based Northern Planning Advisory Committee was established in
October 2004 to prepare advice on how the themes and objectives identified in the
scoping report should be progressed. The advisory committee provided this advice
to the National Oceans Office in May 2005.
To assist in building a knowledge base for planning, a number of other reports and
projects were completed during 2004–05 including:
• Living on Saltwater Country—a literature review and consultation reports
summarising information on Aboriginal rights, use, management and interests
in northern Australian marine environments
• Key Species report—a collection of contemporary information on economically,
culturally and conservationally significant species groups for northern Australia
• Northern Marine Atlas (Non-fisheries Uses in Australia’s Marine Jurisdiction)—
a collection of maps depicting marine uses, interests and activities other than
fisheries
• marine research cruises conducted across the northern planning area
(see page 74).
A Northern Fisheries Atlas showing catch and effort for commercial, recreational
and Indigenous fisheries was also developed.

Coasts and oceans
As a separate component to the northern planning process, the National Oceans
Office identified marine planning needs in Torres Strait. The regional marine
planning process for the Torres Strait complements the Natural Heritage Trust-
funded natural resource management planning process (see page 159). Marine
planning issues in the Torres Strait region include conservation needs, the
relationship between Torres Strait Islander involvement in fisheries, fisheries
management and economic development programmes, natural resource
governance arrangements under the Torres Strait Treaty, and the Moratorium on
Seabed Drilling and Mining.
The Northern Regional Marine Plan is expected to be released in 2006–07.
South-west Regional Marine Plan

Preliminary work has commenced for a third regional marine plan, the South-
west Regional Marine Plan, which will cover waters adjacent to South Australia
and Western Australia, from Kangaroo Island to the mid-west coast of Western
Australia.
Discussions continue with the South Australian and Western Australian
governments over their role in a cooperative and integrated approach to marine
planning in both Commonwealth and state waters.
Preliminary assessment work has commenced, with National Oceans Office
expenditure of $0.2 million in 2004–05. Projects are under way to assess:
• current knowledge about the key ecological drivers and biodiversity
components
• the range of uses of the marine environment and its resources
• the nature and diversity of Indigenous marine values
• maritime heritage values
• the key drivers of change likely to affect the marine environment and the use of
its resources over the next 10–20 years.
The National Oceans Office will also produce a marine atlas to map the distribution
of human uses, management measures and environmental features in the region.
Marine surveys
The National Oceans Office is contributing:
• $0.1 million over 2003–2006 for acoustic mapping of the seabed of the Great
Barrier Reef, as part of a $6.1 million collaboration with the Fisheries Research
and Development Corporation, CSIRO, the Australian Institute of Marine
Science, the Queensland Department of Primary Industries, and museums
73
Coasts and oceans
• $0.4 million over 2004–2006 for a project evaluating alternative fisheries

management strategies in the South-east Marine Region with the Fisheries
Research and Development Corporation and the Australian Fisheries
Management Authority.
During the year a partnership between the Nationals Oceans Office, Geoscience
Australia and the CSIRO saw the launch of a $2.5 million multibeam echo sounder,
or swath mapper, on the RV Southern Surveyor. A major part of the commitment
to this partnership was funding of $2 million in 2004–05 for 50 days of sea time on
the RV Southern Surveyor spread across three voyages, two in the southern Gulf
of Carpentaria and one in the Arafura Sea, as part of the northern regional marine
planning process.
The Gulf of Carpentaria voyages identified thriving coral reefs in areas previously
thought to be too turbid to support coral. The aim of the Arafura Sea voyage was
to explore areas of the ocean floor in the Arafura Sea for natural hydrocarbon
seeps and to study their effect on the environment. Preliminary results include the
discovery of new species.
Also in northern Australia, the National Oceans Office coordinated an investigation
of seagrass habitats through the North Australian Marine Biodiversity Survey. The
survey was designed to assist the Australian, Northern Territory and Queensland
governments in managing northern Australian waters, to build partnerships and
promote sharing of knowledge between governments, researchers and Indigenous
people, and to build the capacity of Aboriginal communities to engage in future
research and management initiatives. The survey covered waters that had not been
investigated by scientists since the early 19th century expeditions of the Mermaid
and the Beagle (see map opposite). It included:
• aerial mapping of intertidal seagrass habitats and surveys of marine debris
across northern Australia’s coastline between the Van Diemen Gulf in the
Northern Territory and Torres Strait during November 2004
• a vessel-based survey of seagrasses and associated biodiversity in the Van
Diemen Gulf and across the northern Arnhem Land coastline from November–
December 2004
• the collation of Indigenous knowledge of seagrass habitats and associated
species.

Coasts and oceans
North Australian Marine Biodiversity Survey

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National Marine Bioregionalisation

The National Oceans Office completed the National Marine Bioregionalisation
in 2004–05. This study was a cooperative project with CSIRO Marine Research,
Geoscience Australia and a national working group of Australian, state and
Northern Territory government experts. The study brought together biological,
geological and oceanographic data to classify Australia’s marine environment into
regions that make sense ecologically and are at a scale useful for regional marine
planning. The resulting regionalisation adds to the existing Interim Marine and
Coastal Regionalisation of Australia.
Coastcare
(Administered item—part of the Natural Heritage Trust)
Coastcare is that part of the Natural Heritage Trust invested in protecting coastal
catchments, ecosystems and the marine environment. Total expenditure under
Coastcare was $58.3 million in 2004–05. Results are reported in the annual reports
of the Natural Heritage Trust available at
www.nht.gov.au/publications/index.html#annual-reports.
See also: administration of the Natural Heritage Trust, page 158.
75
Coasts and oceans

Coastal Catchments Initiative (See also Natural Heritage Trust annual report)
Number of projects or activities approved under 35 projects and activities managed in 2004–05
each programme
Number of agreements, plans and management Progress was made towards 5 water quality
arrangements put in place improvement plans and agreements
Degree to which projects, activities, agreements or High—supported water quality improvement plans
plans contribute to the output
Reef Water Quality Protection Plan (See also Natural Heritage Trust annual report)

each programme
Degree to which projects, activities, agreements or High—supported the reef plan

Natural Heritage Trust Extension Wetlands Programme (See also Natural Heritage Trust annual report)

each programme
Degree to which projects, activities, agreements or High—supported wetlands conservation

Great Barrier Reef Coastal Wetlands Protection Programme

each programme
Degree to which projects, activities, agreements or High—supported wetlands conservation

Introduced Marine Pests Programme (See also Natural Heritage Trust annual report)

each programme
Number of agreements, plans and management 1 intergovernmental agreement

Degree to which projects, activities, agreements or High—supported national response to marine pests

Coasts and oceans
Marine Species Protection Programme (See also Natural Heritage Trust annual report)

each programme
Number of agreements, plans and management 13 recovery plans

Degree to which projects, activities, agreements or High—supported protection of marine species

Marine Protected Areas Programme (See annual reports for Natural Heritage Trust and Director of National Parks)
Number of projects or activities approved under (See annual reports for Natural Heritage Trust and
each programme Director of National Parks)
Number of agreements, plans and management (See annual reports for Natural Heritage Trust and
arrangements put in place Director of National Parks)
Degree to which projects, activities, agreements or High—supported management of existing marine

plans contribute to the output protected areas and development of future marine
protected areas
All programmes

Boat Harbour and Sisters Beach, Tasmania (Administered item)
Extent to which the project will achieve government High—project objectives were met through the
objectives construction of a wastewater treatment plant at
Shelter Point and new sewerage infrastructure at
Boat Harbour Beach to improve the water quality
of Boat Harbour Beach, while infrastructure and a
wastewater treatment plant for the Sisters Beach
and Lake Llewellyn communities have improved
coastal water quality
Number of milestones achieved compared with Boat Harbour Beach—4 of 4 contract milestones
those specified in the contract completed
Sisters Beach—10 of 11 contract milestones
completed
Coastcare (Administered item—part of the Natural Heritage Trust) See page 160
77
Coasts and oceans
Great Barrier Reef Marine Park Structural Adjustment Package (Administered item)
The service level agreements with the Queensland The Queensland Rural Adjustment Authority
Rural Adjustment Authority and the Department completed the business exit (licence buy-out)
of Transport and Regional Services achieve the component of the package in December 2004. 115
government’s objectives in providing assistance licences and 4 coral reef fin fish symbols from other
to stakeholders affected by the Great Barrier Reef licences were purchased for a total of $32.2 million.
Marine Park Representative Areas Programme The licence buy-out met the effort reduction targets
for the four seafood fisheries that were part of the
buy-out process.
The second major part of the package is business
restructuring assistance, to assist business to adapt
to the impact of the rezoning. 334 fishery and
fishery-related businesses received assistance under
this component of the package during 2004–05,
with total assistance of $7.6 million. The Department
of Transport and Regional Services commenced
discussions with Area Consultative Committees in
the region in order to develop projects under this
component of the package.
2 service level agreements are in place by early Queensland Rural Adjustment Authority agreement
2004–05 signed on 16 September 2004
Department of Transport and Regional Services
agreement signed on 21 April 2005
Extent to which statutory timeframes are met under High—all timeframes met
legislation

requirements
International

Extent to which Australia’s strategic objectives are High—great white shark successfully listed
achieved through international forums under the Convention on International Trade in
Endangered Species of Wild Fauna and Flora
Australia’s Asia–Pacific Economic Cooperation
(APEC) introduced marine pests project endorsed by
APEC leaders
Australian priority issues (including high seas
biodiversity conservation; combating illegal,
unreported and unregulated fishing; promoting
sustainable fishing; addressing marine debris)
addressed and advanced at United Nations forums

Coasts and oceans
Information and education products distributed to Marine species identification flipcards developed
stakeholders (measured by web site hits, information and distributed
Visitor brochures for 2 marine protected areas
updated and distributed
coasts-related part of the department’s web site
Number of research reports, articles and papers 7 reports on marine protected areas
prepared and publicly released
The Economic Contribution of Australia’s Marine
Industries report released
National Marine Atlas of non-fisheries uses published
Australia’s Oceans Policy
Advice to ministers will be comprehensive, timely Advice to ministers based on comprehensive

and canvass all relevant stakeholders consultation processes
Valued and timely papers prepared for the National Oceans Ministerial Board dissolved
National Oceans Ministerial Board, Oceans Board of
Papers provided to other bodies within set
Management, Oceans Policy Science Advisory Group
timeframes
and National Oceans Advisory Group meetings and
input to other relevant policy issues
Timely, valued contributions to relevant All input requested delivered on time

international meetings and processes
Engagement with international meetings carried
out professionally and in line with national interest
priorities
Mechanisms for integrated oceans management Guidelines for Applying an Ecosystem Approach in
in the Commonwealth are further developed and the Oceans developed for whole-of-government
progress made on appropriate intergovernmental consideration
mechanisms
Commonwealth guidelines for integrated oceans
management
Substantial progress is made towards an Natural Resource Management Ministerial Council

agreement on principles and elements for national agreed to use Framework for a National Approach
integrated oceans management appropriate to Integrated Oceans Management, which includes
intergovernmental mechanisms principles and governance arrangements
Ministerial advice—number of briefs, ministerials, 45 briefs, 146 ministerials, 10 questions on notice

questions on notice, committees
Coordination requests and input to other policy issues 166
79
Coasts and oceans
Australia’s Oceans Policy continued ...
Acceptance of Australia’s international policy on Principles of Australia’s Oceans Policy (including

oceans management ecosystem-based management; integrated oceans
management; stakeholder consultation) broadly
accepted in international forums
Australian Asia–Pacific Economic Cooperation
(APEC) project on integrated oceans management
completed and endorsed
Phase 1 of APEC project on economic valuation of
the marine environment completed
Oceans Portal project completed and a marine Planning completed, building started—core
registry linked to national data providers components to be completed by December 2005
Number of forums for stakeholder participation 3 meetings of National Oceans Advisory Group
3 meetings of Northern Planning Advisory Committee
Number of meetings of specialist working groups 6 meetings of Bioregionalisation Working Group
Number of meetings of
National Oceans Ministerial Board 0 (board dissolved in 2004–05)
Oceans Board of Management 2
Oceans Policy Science Advisory Group 4
National Oceans Advisory Group 3
Regional marine plans
Area of Australia’s exclusive economic zone covered More than 4 million out of the 14 million square
by regional marine planning processes kilometres in Australia’s exclusive economic zone is
covered by regional marine planning processes in
the south-east, north and south-west
Northern Regional Marine Plan
Agreement by governments to the northern Scoping report released in September 2004

planning process, scoping report and related
recommendations
Mechanisms for integrated marine planning in the Regional marine planning in Torres Strait is being
Torres Strait are agreed by governments undertaken in the context of, and complementary
to, broader regional natural resource management
planning in Torres Strait. These arrangements
were developed with the active engagement of
Queensland Government agencies. Marine planning is
focused on natural resource management governance
arrangements under the Torres Strait Treaty,
conservation assessments, risk assessments associated
with the Moratorium on Seabed Drilling and Mining
and links between islanders, fisheries management
and economic development programmes.

Coasts and oceans
Regional marine plans continued ...
Scoping agreement for the northern marine Scoping process completed and assessment reports
planning process and the number of assessment produced (Living on Saltwater Country report series,
streams arising from the process Key Species report, Northern Fisheries Atlas)
South-west Regional Marine Plan
Agreement by governments to a collaborative Draft memorandum of understanding being

approach to a planning process for the south-west considered (see below)
marine area
Memorandum of understanding with South Negotiations commenced—details to be finalised

Australian and Western Australian governments on by early 2006
the south-western regional marine planning process
Snapshot of the south-west region Assessments commenced
South-east Regional Marine Plan
Initial implementation of key South-east Regional Progress on implementing actions in the plan was
Marine Plan actions are progressed to the reported to the Oceans Board of Management,
satisfaction of the National Oceans Ministerial Board following dissolution of the ministerial board.
The actions reported on included mapping of the
seafloor in the south-east, facilitation of a national
Marine Discovery Centre network, improved
understanding of economic issues, regional tourism
initiatives, development of the Oceans Portal and
development of sea country plans.
Completion of the priority action items in the South- Kooyang Sea Country Plan released on 29 April 2005
east Regional Marine Plan
Marine science
National marine spatial data infrastructure and Oceans Portal currently under development—due
marine research are effectively supporting regional for completion in December 2005
marine planning processes
Research carried out in the Gulf of Carpentaria and
the Arafura Sea to support the northern marine
planning process
Information on existing spatial management measures
collected to support regional marine planning
81
Coasts and oceans
Regional marine plans continued ...
Amount of marine scientific, economic and social 6 reports prepared to support National Marine
research conducted and data collected and Bioregionalisation—reports cover sediments,
managed oceanography, sponges, fish, pelagic regionalisation
and benthic bioregionalisations
Research on Economic Contribution of Australia’s
Marine Industries 1995–96 to 2002–03 published
Research contracts in progress for the Great Barrier
Reef seabed biodiversity project, the analysis of
reports from the NORFANZ cruise, and research
voyages in Arafura Sea and Gulf of Carpentaria
Completion of the National Marine National Marine Bioregionalisation completed and

Bioregionalisation Report and the National Marine due to be launched in second half of 2005
Atlas
National Marine Atlas of non-fisheries uses launched
in July 2004 and Northern Fisheries Atlas to be
launched in second half of 2005
Regional marine planning coordination
Valued and timely papers are prepared for the Secretariat services provided to Northern Planning
regional planning and advisory groups Advisory Committee—committee’s advice was
provided on time and within budget
Number of forums and meetings to facilitate 3 meetings of Northern Planning Advisory

stakeholder participation Committee
Number of meetings of specialist working groups 1 meeting of South-west Marine Region

Government Forum

Annual report of the Director of National Parks at
www.deh.gov.au/about/annual-report
on page 158.

Coasts and oceans
Legislation
Resources
$’000 $’000
Sub-output: Coasts, oceans, estuaries and coastal wetlands 10 181 12 253

(2)
Sub-output: Regional marine planning 4 877 6 642
Sub-output: Oceans Policy (2) 1 219 585
Total (= Output 1.3: Coasts and oceans) 16 277 19 480
Administered items
Natural Heritage Trust – Coastcare 40 300 58 325

Great Barrier Reef – Representative Areas Programme 49 125 49 125
Development of Sewerage Scheme for Boat Harbour and Sisters 1 000 692
Beach, Tasmania

(1)
(2)
The budget price estimates and actual expenses shown for these sub-outputs do not include the resources of the
National Oceans Office from 1 July 2004 to 3 November 2004, when the office was a separate financial entity from
the department. The financial statements beginning on page 387 show the resources of the National Oceans Office
for the period 1 July 2004 to 3 November 2004.
83
The Department of the Environment and Heritage manages referral, assessment

and approval processes under the Environment Protection and Biodiversity
The department also manages assessment and approval processes under other
federal laws, particularly the Environment Protection (Sea Dumping) Act 1981
and the Sea Installations Act 1987.
• Environmental assessments and approvals Approvals and Wildlife

• Sea dumping and sea installations regulation Division
Objectives
• To protect the matters of national environmental significance defined in the
• To improve guidance and assistance to industry and landholders on
Environment Protection and Biodiversity Conservation Act 1999 matters to
protect and conserve biodiversity
• To monitor compliance of proponents under the environment assessment
and approvals requirements of the Environment Protection and Biodiversity
• To strengthen enforcement and monitoring capabilities for the Environment
Protection and Biodiversity Conservation Act 1999
• To protect the marine environment through the management of dumping
under the Environment Protection (Sea Dumping) Act 1981

Main results
• Since July 2000 more than 1 000 matters of national environmental
significance (including aspects of the environment for actions of the
Australian Government or actions involving Commonwealth land) have
been protected through the referrals, assessments and approvals process,
with 193 of these matters protected in 2004–05
• The department’s compliance and enforcement capabilities were
enhanced, with the department’s new Environment Investigations Unit
completing its first full year of operation—also, a record penalty of
$450 000 was awarded for the first successful civil action taken by the
department for a breach of Part 3 of the Act
Environmental assessments and approvals

The Environment Protection and Biodiversity Conservation Act 1999 establishes
procedures for determining which actions require approval under the Act, and
the related environmental assessment and approvals processes. Approvals are
required for actions that are likely to have a significant impact on those matters of
national environmental significance protected under Part 3 of the Act. Approval
is also required for actions of the Australian Government and actions involving
Commonwealth land that are likely to have a significant impact on the environment.
Since the commencement of the Act in July 2000 more than 1 000 matters of
national environmental significance (including aspects of the environment for
actions of the Australian Government or actions involving Commonwealth
land) have been protected through the referrals, assessments and approvals
process, with 193 of these matters being protected in 2004–05. The matters of
national environmental significance protected include: world heritage properties;
Ramsar wetlands of international importance; threatened species and ecological
communities; migratory species; and the Commonwealth marine environment.
Timeframes for all decision-making in the referral, assessment and approval
process are fully specified in the Act. The chart (next page) shows the percentage
of such decisions that have been made within statutory timeframes since the
commencement of the Act in July 2000.
While the extent to which statutory timeframes are met for decision-making in the
referral, assessment and approval process remains high overall, there was a slight
decrease in the number of decisions made within statutory timeframes in 2004–05.
This follows the trend of 2003–04, and is indicative of the increasing number of
85
Timeliness of environmental impact decisions (2000–present)

Percentage made within statutory timeframes in 2004–05 = 83%

0ERCENTAGEOFDECISIONSMADE
WITHINSTATUTORYTIMEFRAMES

9EAR
Statutory timeframes apply to referral, assessment and approval decisions and administrative actions
under the Environment Protection and Biodiversity Conservation Act 1999. The relevant provisions of the
Act commenced on 16 July 2000.
complex and sensitive proposed actions, and the increasing work resulting from
actions referred in previous years now entering the approvals phase.
A full report on the department’s environmental assessment and approvals
activities can be found in the detailed report on the operation of the Environment
Protection and Biodiversity Conservation Act 1999 included in the second volume
of this set of annual reports. The detailed report also includes information on:
• compliance activities being undertaken by the department, including the first
full year of operation of the department’s Environment Investigations Unit and
the penalty awarded for the first successful civil action taken by the department
for a breach of Part 3 of the Act
• the progress of the department in revising and developing new guidelines to
help the public understand what impacts could be classed as significant and
hence require detailed assessment and approval under the Act
• the stakeholder and public awareness activities of the department, including
successful training and information sessions on the Act held for local and
regional bodies across Australia and risk analysis projects commenced for two
high growth regions in Western Australia and Victoria.
Project work is partly funded through the national component of the Natural
Heritage Trust. During 2004–05 $1.8 million was spent from the Natural Heritage
Trust on environmental assessment and approval related projects—this figure
also includes funding for projects related to assessments under the Environment
Protection (Sea Dumping) Act 1981, discussed below.
See also: courts and tribunals, page 204.

Sea dumping and sea installations regulation
The Environment Protection (Sea Dumping) Act 1981 was enacted to fulfil
Australia’s international responsibilities under the London Convention of 1972 and
has been amended to implement the 1996 Protocol to the London Convention,
which Australia ratified in 2001. The Act regulates the deliberate loading and
dumping of wastes and other matter at sea and provides the basis for the
assessment, permitting and ongoing management of such actions.
With the expansion of a number of ports across Australia there was an increase
in applications for the disposal of dredged material in 2004–05. Reviews of
applications for offshore disposal of spoil from capital or maintenance dredging
involve detailed assessments under the National Ocean Disposal Guidelines for
Dredged Material.
An increase in permits granted under the Environment Protection (Sea Dumping)
Act 1981 for artificial reef placement during 2004–05 reflected growing interest in
increasing tourism by providing recreational diving opportunities. The majority of
artificial reef placements were vessels.
The Sea Installations Act 1987 regulates the construction and operation of sea
installations to:
• ensure that sea installations are environmentally sound and operated in a
manner that is consistent with the protection of the environment
• ensure that sea installations are operated safely.
The majority of sea installations in Australia are within the Great Barrier Reef
Marine Park. In 2004–05 the department issued one permit for a sea installation
under the Act.
87

Performance indicator 2004-05 results
Number of times matters of national environmental 193 matters protected under Part 3 of the
significance have been protected Environment Protection and Biodiversity Conservation
Act 1999 were afforded protection through the
referral, assessment and approval process in
2004–05
Extent to which statutory timeframes are met under High—despite a slight decrease in the percentage of
legislation decisions made within statutory timeframes, due to
the increasing complexity of proposals
Stakeholders are satisfied that the administration of Stakeholder feedback indicates a high level of
assessment and approvals under the Environment satisfaction with the administration of assessment
Protection and Biodiversity Conservation Act 1999 is and approvals under the Environment Protection and
fair and in accordance with statutory provisions Biodiversity Conservation Act 1999
Information and education products distributed to Stakeholder awareness was enhanced during
stakeholders (measured by web site hits, information the year through the Environment Protection and
material distributed, etc) Biodiversity Conservation Act 1999 web site, the
distribution of information products, and training
and information sessions held throughout the
country
assessments and approvals-related part of the
department’s web site
Legislation
Environment Protection (Sea Dumping) Act 1981
Sea Installations Act 1987
Sea Installations Levy Act 1987

Resources
$’000 $’000
Output 1.4: Environmental assessments and approvals 12 405 13 917

(1)
89
Heritage
The Department of the Environment and Heritage identifies, protects and

conserves natural and cultural heritage, including Indigenous and historic heritage.
• World, national and Commonwealth heritage

• Indigenous heritage
• Asia–Pacific world heritage
Heritage Division
• Historic shipwrecks
• Protection of movable cultural heritage
• Cultural heritage projects
Natural Resource
• Cultural heritage projects: Strengthening
Management Programmes
Tasmania—Low Head precinct
Division
Objectives
• To identify, protect and conserve Australia’s natural, Indigenous and historic
heritage of national and world significance
• To support the preservation and restoration of significant heritage places across
Australia
• To support the World Heritage Convention by promoting protection for natural
and cultural heritage in the South East Asia–Pacific region
• To increase knowledge and enjoyment of Australia’s historic shipwreck heritage
while protecting shipwrecks and associated relics
• To prevent Australia’s cultural heritage from being significantly diminished due
to the export of heritage objects

Heritage
Main results
• The Royal Exhibition Building and Carlton Gardens in Victoria were
inscribed on the World Heritage List—the first time Australian built heritage
has been listed as world heritage—and also included on the National
Heritage List
• A total of 11 places were added to the National Heritage List and three places
were added to the Commonwealth Heritage List—these lists commenced
on 1 January 2004; as at the end of 2004–05 Australia had 11 listed national
heritage places and 337 listed Commonwealth heritage places
• The department helped to develop the World Heritage—Pacific 2009 Strategy
World, national and Commonwealth heritage

Australia’s heritage contributes to our sense of national identity and shared values.
Our heritage places cover natural, Indigenous and historic heritage and protecting
this heritage benefits future generations as well as the present.
The Australian Government’s main legislation for protecting heritage places is the
Environment Protection and Biodiversity Conservation Act 1999. The Act protects
the heritage values of sites that are included on one or more lists of:
• world heritage places, whose global significance is recognised under the
Convention Concerning the Protection of the World Cultural and Natural
Heritage (usually referred to as the World Heritage Convention)
• national heritage places, whose heritage values are of outstanding significance
to the nation
• Commonwealth heritage places, which are owned or leased by the Australian
Government.
The Australian Government introduced the national and Commonwealth heritage
provisions of the Act in 2003; the new provisions took effect in January 2004. The
government has provided additional funding to the department to help develop
and implement the new arrangements, under the Distinctively Australian measure
($52.6 million from 2003–2007) and the National Heritage Investments Initiative
($10.5 million from 2005–2009).
The department manages the processes set up by the Act, provides assessment advice
to the government, and advises property managers on their heritage management
plans and strategies. The department also supports the Australian Heritage Council in
its assessment, advice and public information and awareness activities.
91
Heritage
World heritage listings

Only national governments can nominate a place for inclusion in the World
Heritage List. The World Heritage Committee then decides whether to list the
nominated place. Australia now has 16 world heritage areas.
On 1 July 2004 the site of the Royal Exhibition Building and Carlton Gardens
in Melbourne was listed as world heritage. This property is the main surviving
example of a ‘palace of industry’, reflecting the global influence of the international
exhibition movement of the 19th and early 20th centuries. The property was also
included on Australia’s National Heritage List. Discussions with Victoria about
management arrangements are under way.
National and Commonwealth heritage listings

Anyone can nominate a place for inclusion on
the national or Commonwealth heritage lists. The
Minister for the Environment and Heritage decides
whether to include a place on the lists.
Before making a decision the minister must
first request an assessment of the relevant
heritage values by the Australian Heritage
Council, an independent expert advisory body
established in February 2004. The council is the
government’s principal advisory body on a wide
range of heritage matters, and organises public
consultation on proposed listings. The council
also maintains the Register of the National Estate,
Cobblers Gully battery site,
Castlemaine Diggings National which the minister must, where relevant, take
Heritage Park into account when making decisions under
Photo: M Mohell and the Australian the Environment Protection and Biodiversity
Heritage Photo Library
Castlemaine Diggings National
Heritage Park was placed on The minister received 48 nominations for the
the National Heritage List in National Heritage List in 2004–05. Of these
January 2005 for its outstanding
value as one of Australia’s nominations, 22 were processed, with the
richest collections of mining remainder currently being assessed. The minister
sites and landscapes, with received 11 nominations for the Commonwealth
particularly important and rare
large areas relating to the early
Heritage List, of which three were processed, with
phase of the Australian gold the remainder currently being assessed.
rushes in the 1850s.

Heritage
After the first full year’s operation of the national and Commonwealth heritage
provisions of the Act, Australia had 11 national heritage places (photo opposite and
map below) and 337 Commonwealth heritage places. Most of the Commonwealth
Heritage List places are historic.
National heritage places
1 Budj Bim National Heritage

Landscape – Tyrendarra Area
2 Budj Bim National Heritage
Landscape – Mount Eccles
Lake

Condah Area
3 The Royal Exhibition Building
4 Dinosaur Stampede National
Monument
5 Kurnell Peninsula Headland
6 Eureka Stockade 4
7 Castlemaine Diggings National
Heritage Park
8 Mawson's Hut
and
Mawson's Huts

Historic Site
9 Brewarrina Aboriginal Fish Traps
(Baiames Ngunnhu)
10 Port Arthur Historic Site 9
11 Alpine National Park Site
5
7
11
12 6 3
10
Emergency listings
The minister can decide to ‘emergency list’ a place that may have national or
Commonwealth heritage values which have come under threat. A decision to
‘emergency list’ a place is not necessarily permanent as the Australian Heritage
Council must follow up any emergency listing with a detailed assessment.
During 2004–05 the minister received requests to emergency list 24 places in the
National Heritage List. One request was later withdrawn. The minister rejected
19 of these requests, in most cases because there was insufficient evidence that
national heritage values existed. For example on 10 December 2004 the minister
rejected an emergency listing request for 13 grey nurse shark habitat areas off the
east coast because they were not considered to have national heritage values.
93
Heritage
In the remaining cases the applications were rejected because national heritage
values that may have been present were not considered to be under threat in the
short term. For example on 27 January 2005 the minister decided not to emergency
list the Alpine National Park in Victoria because a future decision on renewing
alpine grazing licences did not constitute a present threat. He subsequently
listed the park under the emergency provisions when the Victorian Government
confirmed its proposal to ban grazing.
The minister first exercised the emergency listing power on 17 September 2004
by deciding to include the Kurnell Peninsula in New South Wales on the National
Heritage List. On 24 February 2005 the minister confirmed the listing of part of the
peninsula based on the advice of the Australian Heritage Council.
The remaining two requests were still being assessed as at 30 June 2005.
During 2004–05 the minister also received two requests to emergency list seven
places in the Commonwealth Heritage List. As at the end of 2004–05 no places had
been emergency listed in that list.
Details of all requests and the reasons for the minister’s decisions are available from
the Australian heritage database at www.deh.gov.au/cgi-bin/epbc/heritage_ap.pl.
Heritage management
Management plans for heritage places are prepared under a range of federal, state
and territory legislation. The department continued to advise property managers
as they developed management plans to ensure they are consistent with national
heritage management principles.
In July 2004 the department reported on the high level of conservation and
management of Australia’s world heritage areas to the international World Heritage
Committee. Project work to support the management of Australia’s world heritage
areas is partly funded through the national component of the Natural Heritage
Trust. During 2004–05 $8.7 million was spent from the Natural Heritage Trust,
mainly on management of the Tasmanian Wilderness World Heritage Area and the
Wet Tropics of Queensland World Heritage Area.
In August 2004 the government announced a further $6 million for protecting the
Daintree region of Queensland, which includes the Wet Tropics of Queensland
World Heritage Area. Of this $1 million is for cassowary conservation. Project
development is under way. The funding comes from the Australian Biodiversity
Hotspots Programme (see page 46).
Australian Government agencies must prepare a heritage strategy for their
Commonwealth heritage places by 1 January 2006. The department advises other

Heritage
Australian Government agencies on their heritage management strategies. As at the
end of 2004–05 the department had received 12 draft management plans and three
draft strategies from other agencies for review.
A full report on the operation of heritage aspects of the Environment Protection
and Biodiversity Conservation Act 1999 appears in the second volume of this set
of annual reports.
Productivity Commission inquiry

In April 2005 the Treasurer announced an inquiry by the Productivity Commission
into the policy framework and incentives for the conservation of Australia’s historic
built heritage. The department and its state and territory counterparts are funding
a study of key heritage economic and policy issues to inform input to the inquiry.
The Productivity Commission will release its final report in April 2006.
Indigenous heritage
The department works with other government agencies and the community to
protect the cultural heritage of Aboriginal peoples and Torres Strait Islanders. This
includes supporting efforts to repatriate Indigenous remains held in collections
overseas, and providing emergency protection to areas and objects in Australia of
cultural significance, including traditional significance.
Aboriginal and Torres Strait Islander Heritage Protection Act

The Minister for the Environment and Heritage can protect places and objects that
have a traditional significance for Indigenous peoples from threats of injury or
desecration under the Aboriginal and Torres Strait Islander Heritage Protection
Act 1984. This ‘last resort’ protection may only be given when there is inadequate
protection under state or territory laws, except in the case of Victoria, whose
Aboriginal cultural heritage is protected by Part IIA of the Act.
The department also monitors compliance with a 20-year declaration under the Act
for Junction Waterhole in Alice Springs. The declaration will expire in 2012.
In 2004–05 the department advised the minister on five applications continuing
from the previous year, and on seven new matters. Some applications were for
emergency protection and others were for longer-term protection. The applications
related to an area in the Australian Capital Territory affected by the extension of
Gungahlin Drive, areas in outer Perth affected by road development and a new
recreation lake, an area near Broome relating to a bird observatory and an area
in the Hunter Valley under coal mining development. The minister did not make
emergency or longer-term declarations in response to the applications.
95
Heritage
Indigenous Heritage Programme

The Indigenous Heritage Programme supports the management, promotion and
protection of Aboriginal and Torres Strait Islander heritage. This programme was
formerly the Preservation and Protection of Indigenous Heritage programme,
and was transferred from Aboriginal and Torres Strait Islander Services to the
Department of the Environment and Heritage on 1 July 2004.
Prior to the transfer Aboriginal and Torres Strait Islander Services allocated
$3.3 million to 63 projects across Australia, which received the allocated funding
during 2004–05 after the transfer. The department received an additional 143
applications for around $12 million in funding. Decisions about these applications
were finalised in July 2005. Projects funded addressed identification of Indigenous
heritage, the conservation of Indigenous heritage sites, small-scale Indigenous
heritage related business activities, the construction of keeping places for
Indigenous heritage items and the sharing of Australian Indigenous heritage.
See also: Indigenous Protected Areas Programme, page 154.
Asia–Pacific world heritage

The Australian Government is supporting the World Heritage Convention by
promoting protection for natural and cultural heritage in the South East Asia–Pacific
region. The department is responsible for carrying out the government’s heritage
initiatives in Australia’s region. These include the Asia–Pacific Focal Point for World
Heritage Managers, and the $10 million Regional Natural Heritage Programme.
Asia–Pacific Focal Point for World Heritage Managers

The Asia–Pacific Focal Point for World Heritage Managers is a regional network
of world heritage managers established to share experience, knowledge and
resources between countries in the region (see www.heritage.gov.au/apfp).
Through this network the department supports activities for implementation of the
World Heritage Convention in Australia’s region.
During the year the department contributed to the development of the World
Heritage—Pacific 2009 Strategy, an action plan for Pacific island states to
conserve their heritage places and engage with the World Heritage Convention,
and supported six projects. A $250 000 AusAID-funded project awarded to the
department in 2002 under the Australia–Indonesia Government Sector Linkages
Programme was finalised. The project, a collaboration between the department,
the Wet Tropics Management Authority and the Indonesian Government’s Ministry
of Forestry, has assisted Indonesia with management planning at Lorentz National
Park, Papua.

Heritage
Regional Natural Heritage Programme
(Administered item)
Under this programme the department helps countries in the Asia–Pacific region
manage sites with high biodiversity, focussing on the need to protect areas that are
under threat (biodiversity hotspots). The programme is helping to conserve the
habitat of some of the world’s most threatened species, such as the Sumatran tiger
and Vietnam’s black crested gibbon.
The programme provides grants to non-government organisations and other
agencies. Nine projects approved in 2003–04 received funding of $0.8 million
during 2004–05. An additional 15 projects were approved in 2004–05 and started in
July 2005. These projects will receive funding of $4.4 million in 2005–06.
Projects implemented in 2004–05 included: Mondulkiri elephant conservation
(Cambodia); conservation of the eastern black crested gibbon and snub-nosed
monkey (Vietnam); environmental education training and community awareness
programme for Tam Dao National Park (Vietnam); community conservation of
the Gau Highlands and the critically endangered Fiji petrel in Gau Island (Fiji);
delivering conservation and policy development for the Sulu Sulawesi Seas
(Indonesia, Malaysia and the Philippines); conservation of coral reef hotspots
in the Bismarck Sea (Papua New Guinea); and enhancement of biodiversity
conservation in Indonesia.
Chinese world heritage

The department continued to participate in an international project to develop
cultural heritage practice in China. The department’s partners in this project are
the Chinese State Administration of Cultural Heritage and the Getty Conservation
Institute. The State Administration of Cultural Heritage is developing master plans
for managing two world heritage sites at Mogao and Chengde. The master plans
will be presented as models at the 15th General Assembly of the International
Council on Monuments and Sites (ICOMOS, an international non-governmental
organisation dedicated to the conservation of the world’s historic monuments and
sites) to be hosted by China at Xi’an in October 2005.
Historic shipwrecks
The department administers the Historic Shipwrecks Act 1976 and the
government’s Historic Shipwrecks Programme. The aims are to increase
knowledge and enjoyment of Australia’s historic shipwreck heritage while
protecting shipwrecks and associated relics.
97
Heritage
In November 2004 the minister announced that two newly discovered shipwrecks
off the New South Wales south coast, the William Dawes and TSS Bega, would be
protected under the Act.
During 2004–05 the department provided $0.4 million to the states, the Northern
Territory and Norfolk Island for the administration of delegated responsibilities
under the Historic Shipwrecks Act 1976 and for projects aimed at the protection,
preservation and monitoring of historic shipwrecks.
Protection of movable cultural heritage

The department administers the Protection of Movable Cultural Heritage Act 1986.
The aim is to prevent Australia’s cultural heritage from being significantly diminished
due to the export of heritage objects. This includes supporting collecting institutions
such as museums through the National Cultural Heritage Account. The Act also
aims to protect the cultural heritage of other countries by preventing the illegal
importation of significant objects. Results for 2004–05, including a review of the Act,
objects acquired with assistance from the National Cultural Heritage Account, and
objects assessed during the financial year, are listed in the report on the operation of
the Act in the second volume of this set of annual reports.
Cultural heritage projects

Grants-in-Aid-National Trust
(Administered item)
This programme supports the National Trust’s activities to conserve Australia’s
cultural heritage and increase public awareness of this heritage. Under the
programme the department paid $0.8 million to the Australian Council of National
Trusts and to state and territory trusts in 2004–05. Payments supported National
Trust initiatives such as publication of the Australian Council of National Trusts
stage one report on windfarms and landscape values, publication of the New South
Wales National Trust’s quarterly magazine Reflections; publication of the South
Australian National Trust’s Heritage Living circular, the development of online
education information for schools and other education institutions by the Western
Australian National Trust, and upgrades to the web site of the Victorian National Trust.

Heritage
Cultural Heritage Projects Programme
This programme supports projects that conserve
places of significance (left) or identify an
Indigenous place for conservation planning and
listing. Of the 226 grants approved in the four
rounds of funding, 196 have been finalised with
the remainder due for completion by the end of
October 2005. The department paid $3.3 million
under the programme in 2004–05. Grants totalling
$14 million were approved over the four rounds,
with $12.9 million expended. The programme has
now lapsed.
Fremantle War Memorial—work
on the podium and steps was Sharing Australia’s Stories
funded by the Cultural Heritage
Projects Programme This programme supports projects that help
individuals and communities discover and share
Photo courtesy of Returned and Services
League of Australia Western Australia
the stories and places that showcase Australia’s
Branch Inc
distinctive national character and identity. Under
the first (2004–05) round of the programme the
Minister for the Environment and Heritage approved funding for 22 projects. These
projects are expected to be completed and acquitted by the end of 2005–06. The
department paid $0.5 million under the programme in 2004–05.
Gifts to the Nation

This programme provides one-off funding for appropriate projects promoting
national heritage stories and newly listed national heritage places as a key
component of the Australian Heritage Council’s public engagement activities. As an
example, the Castlemaine Diggings National Heritage Site in Victoria illustrates part
of the wider story of Australia’s gold era. In 2004–05 $0.4 million was expended.
Commemoration of Historic Events and Famous Persons

This programme supports the commemoration of people, events and places of
national historical significance. Under the programme the department paid
$0.1 million for projects including war graves and the Prime Ministers’ Memorial
Wall at the Melbourne General Cemetery. An ad hoc grant of $50 000 (GST
inclusive) was given to assist with the conservation of a historic whaling building,
now used as a Scout Hall, called ‘The Barn’ located at Mosman, New South Wales.
The works are expected to be completed by December 2005.
99
Heritage
Strengthening Tasmania—Low Head precinct

(Administered item)
During 2004–05 the department paid $50 000 to refurbish a building dating from
the 1860s in the historical Low Head precinct near Launceston, Tasmania.

Asia–Pacific Focal Point for World Heritage Managers

each programme
Number of agreements, plans and management 2 plans (World Heritage—Pacific 2009 Strategy and
arrangements put in place Lorentz National Park management plan)
Historic shipwrecks

each programme
Cultural Heritage Projects Programme

each programme
Sharing Australia’s Stories

each programme
Gifts to the Nation

each programme
Commemoration of Historic Events and Famous Persons

each programme
All programmes

Accurate and timely approval, payment and All approved projects funded
acquittal of grants in accordance with legislation
Funding provided under financial agreements
and guidelines
that reflect accountability, reporting and acquittal
procedures

Heritage
Accurate and timely payment of monies Payments made in accordance with terms and
conditions of financial agreement with each grant
recipient
Grants-in-Aid-National Trust (Administered item)
Extent to which payments support National Trust High—supported public awareness, understanding
heritage initiatives and appreciation of Australia’s cultural heritage
and the promotion of cultural heritage including
through education, training and research
9 agreements finalised by December 2004 4 agreements finalised by December 2004, with

the remaining 5 agreements finalised by June
2005—delays were due to resolving administrative
matters including late receipt of acquittals and
governance issues
Regional Natural Heritage Programme (Administered item)
Implementation achieves the Australian Funding was provided under financial agreements
Government’s Regional Natural Heritage that reflect accountability, reporting and acquittal
Programme objectives, and is undertaken in procedures, and was targeted to the objectives
accordance with Australian Government financial, of conservation management planning and
project management and audit requirements conservation activities
Number and value of Regional Natural Heritage 9 projects approved in 2003–04 received funding
Programme projects established to approved of $0.8 million in 2004–05—final reports due in
funding targets and completed according to October 2005
contractual requirements
Maintenance and Protection of Indigenous Heritage Programme 1
Objects of cultural heritage significance 500 63 projects totalling $3 million were funded in
2004–05, of which 49 were focused on the
Places of cultural heritage significance 100
identification and conservation of Indigenous
cultural heritage sites
Effectiveness of involvement by Aboriginal and Funding for 50 of the 63 projects approved in

Torres Strait Islander people in protecting or 2004–05 was provided directly to Indigenous
preserving objects or places of cultural heritage organisations. Under the programme guidelines,
significance or in contributing to decision-making eligibility for funding for all projects was dependent
on environment matters on the demonstrated involvement and support of
traditional owners.
1
These indicators appeared in the 2004–05 Immigration and Multicultural and Indigenous Affairs portfolio budget
statement.
101
Heritage
National Cultural Heritage Account
Extent to which the use of the account achieves the 6 applications were received during the
Australian Government’s objectives of preserving financial year. The minister approved funding
heritage objects by assisting their acquisition by for 1 application. 5 applications were still under
Australian collecting institutions consideration as at 30 June 2005. The National
Cultural Heritage Committee requested further
information on 2 of these applications prior to
formulating a recommendation to the minister, and
the remaining 3 were not received until late in the
financial year.
Number of objects acquired 1 object
Extent to which statutory timeframes are met under High—150 out of 171 actions met statutory
legislation timeframes under the Environment Protection and
Biodiversity Conservation Act 1999. The 21 cases when
timeframes were exceeded were due to the large
number of applications for the National Heritage
List received—including requests for emergency
listing—and the complexity of the assessment
processes required.
All timeframes met for Aboriginal and Torres Strait
Islander Heritage Protection Act 1984
Number of referrals considered under legislation 7 applications under the Aboriginal and Torres Strait
Islander Heritage Protection Act 1984 to protect 4
areas of Indigenous significance
Number of plans or arrangements assessed under Preliminary advice provided on 12 draft

legislation management plans
Preliminary advice provided on 4 draft Commonwealth
heritage strategies under the Environment Protection
and Biodiversity Conservation Act 1999

Heritage
International
Extent to which Australia’s strategic objectives are High—Royal Exhibition Building and Carlton Gardens,
achieved through international forums Melbourne inscribed on the World Heritage List
Report to World Heritage Committee showed
that Australia’s world heritage properties are well
managed
6 on-ground projects were supported in Pacific
states and China to assist efforts to protect and
manage heritage of international significance
15 new biodiversity hotspot conservation projects
approved for funding under Regional Natural
Heritage Programme
Information and education products distributed 9 221 copies of heritage publications sent out
to stakeholders (measured by web site hits,
information material distributed, etc)
heritage-related part of the department’s web site

Annual report on the operation of the Protection of Movable Cultural Heritage Act
1986 included in the second volume of this set of annual reports
on page 158.
103
Heritage
Legislation
Aboriginal and Torres Strait Islander Heritage Protection Act 1984
Australian Heritage Council Act 2003
Hindmarsh Island Bridge Act 1997
Historic Shipwrecks Act 1976
Protection of Movable Cultural Heritage Act 1986
Wet Tropics of Queensland World Heritage Area Conservation Act 1994
Resources
$’000 $’000
Sub-output: Heritage conservation 19 009 24 161

Sub-output: Australian Heritage Council 5 577 391
Total (=Output 1.5: Heritage) 24 586 24 552
Administered items
Regional Natural Heritage Programme 4 779 1 608

Grants-in-Aid-National Trust 822 822
National Cultural Heritage Account 185 182
Maintenance and Protection of Indigenous Heritage Programme 1 934 1 737
Strengthening Tasmania – Low Head Precinct 50 50

(1)

The Department of the Environment and Heritage works with all levels of
government, the community and industry to minimise the impact of human
settlements (including industrial processes) on Australia’s environment.
• Product stewardship schemes

• National Packaging Covenant
• Environmental reporting
• Water efficiency labelling
Policy Coordination and
• National Pollutant Inventory
Environment Protection
• Support for the National Environment
Division
Protection Council
• Hazardous substances regulation
• Gene technology risk assessments
• Chemical risk assessments
• Supervision of uranium mining in the Supervising Scientist

Alligator Rivers Region Division
Objectives
• To improve the environmental performance of industry
• To improve public information by promoting better reporting and labelling
• To protect the environment and human health from hazardous substances and
organisms
• To monitor, audit and supervise uranium mining in the Alligator Rivers Region
of the Northern Territory
105
Main results
• Major supermarkets exceeded their national target for reducing the use of
plastic bags
• A new water efficiency and labelling scheme for household appliances
was established to help consumers buy products that use less water
• A new version of the National Packaging Covenant was agreed, reducing
waste from used packaging for another five years
Product stewardship schemes

The department is working in partnership with industry and with state and territory
governments through the Environment Protection and Heritage Council (a council of
government ministers responsible for environment and heritage protection matters) to
address a range of waste issues through product stewardship measures. These include
a policy framework for pursuing product stewardship for used oil, computers, mobile
phones, newsprint, packaging, plastic bags, televisions, tyres and vinyls.
Product stewardship means recognising that manufacturers, importers and other
people who benefit from making and selling a product share some responsibility
for the environmental impacts of that product.
Extending product stewardship schemes

In December 2004 the Environment Protection and Heritage Council released a
discussion paper, Co-regulatory Frameworks for Product Stewardship.
Co-regulation means having some form of government regulation to back
specific industry product stewardship schemes. The paper proposed a way to use
regulation to make sure that businesses that choose to participate in voluntary
product stewardship schemes are not disadvantaged in the marketplace
(see www.ephc.gov.au). The nature of these regulations is yet to be determined
and they will need to be tailored to particular industry sectors. These regulations
will serve to impose obligations on companies that do not participate in the
voluntary industry product stewardship schemes. The regulations will achieve
equivalent environmental outcomes to the voluntary schemes.
The department received 66 submissions on the paper, with over 70 per cent
coming from industry. Over 80 per cent of respondents supported a co-regulatory
approach. The Environment Protection and Heritage Council will now examine
options for taking forward the concept of co-regulation.

Also during the year the department, along with state and territory governments,
provided input to the council on product stewardship schemes for televisions and
computers. The television industry established an independent organisation called
Product Stewardship Australia and continues to further define the details of its scheme.
The department is leading national efforts to establish a recycling scheme for
used tyres. The department has is negotiatinged a draft agreement with the tyre
industry. The industry agreed to undertake detailed economic modelling of its
proposed scheme.
Plastic bags
Each year between 50 and 80 million plastic bags may find their way onto streets
and parks, and into waterways (below). Apart from being unsightly, plastic bag
litter can harm aquatic and terrestrial animals. Reducing plastic bag litter is a
priority for the Environment Protection and Heritage Council, which has indicated
it supports phasing out single use, light weight carry bags by the end of 2008
(see www.ephc.gov.au/ephc/plastic_bags.html).
In December 2002 the council asked the
retail industry and the community to work
together to cut plastic bag litter by
75 per cent by the end of 2004. As part of
a suite of supporting measures the council
challenged retailers to adopt ambitious
targets for reducing the use of single use,
light weight plastic shopping bags and for
increasing the rate at which these bags
are recycled. In response the Australian
Retailers’ Association set voluntary targets
Lightweight plastic shopping bags are an
unsightly pollution problem. that included a 25 per cent reduction in
Photo: B Butt the use of plastic bags by the end of 2004
and a 50 per cent reduction by the end of
2005. In time this should lead to an overall
reduction of plastic bag litter.
In March 2005 the association was able to report that the major supermarket retailers
had reduced plastic bag use by about 27 per cent between December 2002 and
December 2004, exceeding the 25 per cent target. Whereas in 2002 Australians
consumed about 6 billion light weight plastic shopping bags, by the end of 2004
that figure had dropped to less than 5 billion. The association is gearing up to meet
the challenge of achieving the 50 per cent target (see www.deh.gov.au/settlements/
publications/waste/plastic-bags/ara).
107
There are significant national challenges ahead if Australia is to completely

phase out plastic bags by 2008, including enlisting the support of smaller, non-
supermarket retail outlets and maintaining the level of consumer cooperation
in the current efforts to reduce plastic bag consumption. In August 2003 the
Environment Protection and Heritage Council indicated its support for phasing out
light weight, single use carry bags by the end of 2008. Negotiations with retailers
on this issue are an ongoing priority for the department, and dealing with the
associated challenges, particularly for smaller retailers, are an ongoing focus of the
minister’s and the department’s activities. During 2004–05 the minister convened
two roundtables of the smaller retailers with the aim of enlisting their support and
identifying solutions to potential barriers to this support. The department managed
two Natural Heritage Trust grants: a $100 000 grant contributed to the retail
industry’s national consumer awareness programme, Say NO to Plastic Bags; and a
$25 000 grant to Planet Ark supported a survey of non-supermarket retailers, which
identified the difficulties this sector faces in achieving the voluntary targets.
Degradable plastics
At face value plastics that break down quickly—degradable plastics—offer
a technological solution to the problem of managing waste plastic materials.
However the wide range of products available and the variety of settings in
which decomposition could take place make it hard to be certain about the
environmental impacts or benefits of degradable plastics. Until recently there were
no national standards that would allow consumers and regulators to test claims
about the decomposition of plastics. In October 2003 the Environment Protection
and Heritage Council asked Standards Australia, a non-government standards
development body, to develop standards for degradable plastics. In April 2005
Standards Australia published two standards for biodegradable plastics. Further
standards are being developed.
The department is supporting this work and is represented on the standards
development committee. During 2004–05 the department engaged with industry
and with state and territory environment agencies to provide information to the
community on degradable plastics (see www.deh.gov.au/settlements/waste/
degradables). The department also published four editions of a quarterly, online
newsletter on degradable plastics issues to provide up-to-date information on
technology, the industry, standards and government policy development.

Product Stewardship for Oil Programme
In 2001 the Product Stewardship (Oil) Act 2000 established a product stewardship
for oil programme for used lubricating oils. The government’s programme includes
transitional assistance funding, a levy from oil manufacturers and benefits for
used oil recycling. The Australian Taxation Office is responsible for administering
the levy and benefit arrangements. The department administers the transitional
assistance funding and advises on policy.
Industry estimates that about 150–165 million litres of used oil was being
recycled prior to the implementation of the programme. Since the programme’s
implementation in 2001 used oil recycling has increased by about 40 per cent
(chart below). Through the transitional assistance funding the programme has also
installed more than 800 used oil collection facilities across Australia.
Volume of oil recycled (2000–present)

Total volume recycled to date = 903.5 million litres

6OLUMEOFUSEDOILRECYCLEDEACH
YEARMILLIONSOFLITRES

9EAR
The figure for the volume collected in 2000–01 covers only a six-month period. The relevant part of the
Product Stewardship (Oil) Act 2000 commenced on 1 January 2001.
A full report on the operation of the programme appears in the second volume of
this set of annual reports.
National Packaging Covenant

The National Packaging Covenant is a voluntary arrangement to reduce the
environmental impacts of packaging. Companies sign up to the covenant and
are then expected to develop plans to evaluate and reduce the impacts of their
packaging. The plans may include actions like adopting product stewardship
policies, contributing to kerbside collection and recycling programmes, or
promoting awareness that packaging is a resource that can be reused.
See www.deh.gov.au/industry/waste/covenant.
109
The National Packaging Covenant is underpinned by the National Environment

Protection (Used Packaging Materials) Measure. This measure is an agreement by
governments which requires brand owners who are not covenant signatories to
take back and recycle a percentage of their packaging products. State and territory
governments are responsible for implementing the measure in their jurisdictions.
The Environment Protection and Heritage Council oversees the National Packaging
Covenant, which the department helps to administer.
New version of the packaging covenant

The Environment Protection and Heritage Council approved a new version of
the National Packaging Covenant at its 1 July 2005 meeting, following public
consultation. The revised covenant will operate over the next five years, starting
from 14 July 2005. It commits signatories to:
• a national recycling target of 65 per cent for packaging
• limiting the amount of packaging waste sent to landfill by the end of 2010.
The previous version of the covenant was launched in August 1999. Since that time
it had attracted almost 650 industry and government signatories covering all sectors
of the packaging supply chain including raw material suppliers, brand owners and
retailers.
The rate at which organisations were signing on to the previous version of the
covenant dropped in 2004–05 (chart below). The main reason was awareness that
this version was due to expire on 14 July 2005, with many organisations electing
not to sign until the next version of the covenant came into force.
Uptake of the National Packaging Covenant (1999–present)

Total company signatories to date = 649

COMPANYSIGNATORIES

9EAR
Shows the number of companies that have signed on to the National Packaging Covenant. Other
signatories include government agencies. The covenant was launched on 27 August 1999.

Environmental reporting
Non-financial reporting (also known as sustainability and triple bottom line
reporting) is an important driver for improving corporate performance, including
environmental performance. Increasing numbers of corporations are prepared
to report their environmental impacts. This is consistent with good corporate
governance, which includes managing environmental risks.
In the 2005 KPMG International Survey of Corporate Responsibility Reporting,
which surveyed the top 100 publicly listed companies of 16 countries, Australia
ranked 14th out of the 16 countries in terms of the percentage of companies
publishing non-financial information either as a separate report or as part of an
annual report. The average percentage of companies doing this across the
16 countries was 41 per cent, compared with 23 per cent in Australia.
The minister and the department are engaging with organisations in the finance
community to enhance the level and quality of non-financial reporting in Australia.
A key aspect is ensuring that the reports are meaningful and relevant to business
and other stakeholders. The department maintains the Sustainability Reporting
Library, undertakes an annual survey called the State of Sustainability Reporting in
Australia, and has developed guidelines on preparing a sustainability report
(see www.deh.gov.au/settlements/industry/corporate/reporting).
Internationally the guidelines published by the Global Reporting Initiative are
increasingly accepted as the framework for triple bottom line (environment, social
and economic) reporting. The department uses these guidelines to prepare its own
triple bottom line reports. During the year the department published its first triple
bottom line report, covering 2003–04, and began preparing a second triple bottom
line report, covering 2004–05 (see www.deh.gov.au/about/publications/tbl and
page 197).
See also: State of the Environment reporting, page 161.
111
Water efficiency labelling

Encouraging consumers to use water efficient
appliances is one way to conserve water. The
department is implementing the government’s new
water efficiency labelling and standards scheme,
which requires manufacturers to label appliances like
showerheads, washing machines and toilets with a
star rating (left).
The ratings will give consumers a sense of how
much water each appliance uses, with the aim of
encouraging consumers to buy appliances that are
more water efficient. The ratings also provide an
incentive for manufacturers to improve the water
efficiency of their products.
New appliance rating labels The department estimates the scheme will reduce
for water efficiency domestic water use by 87 200 megalitres or 5 per cent
per year by 2021, a saving of 610 000 megalitres over
that period—more water than in Sydney Harbour.
On 18 February 2005 the parliament passed the Water Efficiency Labelling
and Standards Act 2005, which establishes the Water Efficiency Labelling and
Standards Scheme. The scheme came into operation on 1 July 2005 on a voluntary
basis, and will become compulsory for most products from 1 July 2006.
The first report on the operation of the Water Efficiency Labelling and Standards Act
2005 is included in the second volume of this set of annual reports, and additional
information is available at www.waterrating.gov.au.
National Pollutant Inventory

The National Pollutant Inventory is a publicly available database of pollutant
emissions, which the department publishes at www.npi.gov.au. People use it to
find out the types and amounts of pollutants being emitted in local government
areas, including emissions by individual businesses. The National Environment
Protection (National Pollutant Inventory) Measure underpins the inventory.
Annual results
The 2003–04 National Pollutant Inventory results were published in January 2005
as required by the National Environment Protection (National Pollutant Inventory)
Measure (see www.npi.gov.au; results for 2004–05 will be published in January 2006).

The coverage of the inventory increased with the number of facilities reporting to
the inventory rising to 3 618 (compared to 3 364 in 2003–04). Several industries
undertook work to improve the accuracy of their data. Of the 90 listed pollutants,
44 substances had decreased emissions compared to last year and 46 showed
increases. These changes could be due to a range of factors relevant to each
facility, such as the installation of new equipment, better estimation of emissions,
and changes in facility operations. It is not clear what proportion is attributable to
improved environmental performance, the use of different estimation techniques,
or changing production levels.
Review of the pollutant inventory

During the year the Environment Protection and Heritage Council decided to
review the operation and design of the National Pollutant Inventory. The review,
completed in April 2005, found that the inventory is delivering benefits to a range
of groups but could be improved. The council decided on 1 July 2005 that it
would consider varying the National Environment Protection (National Pollutant
Inventory) Measure. The council will consider ways to improve the inventory’s
effectiveness both as a source of information and as a driver of cleaner production.
The Australian Government extended base funding for the National Pollutant
Inventory for four years in the 2004–05 Budget ($5.2 million over the period
2005–2009) and in the 2003–04 Budget committed $4.0 million over three years
(2005–2008) to enhance the inventory.
Support for the National Environment Protection Council

(Administered item)
The National Environment Protection Council is a statutory body with law-making
powers established under the National Environment Protection Council Act 1994
and corresponding legislation in the states and territories. The council now forms
part of the Environment Protection and Heritage Council.
Each jurisdiction contributes funding to support the National Environment
Protection Council with the Australian Government contributing 50 per cent.
The department pays the Australian Government’s annual contribution. This
contribution goes to the National Environment Protection Council Service
Corporation, which provides secretariat, project management and administrative
services. The 2004–05 contribution was $0.4 million.
Detailed outcomes are reported in the annual report on the operation of the
National Environment Protection Council Act 1994 available at
www.ephc.gov.au/php/list_document_types.php.
113
Hazardous substances regulation

The department is involved in a range of Australian Government initiatives
to minimise the environmental and health impacts of hazardous substances.
Internationally the department represents Australia’s interests in the development
of agreements designed to control hazardous chemicals (see www.deh.gov.au/
industry/chemicals/international). Within Australia the department works through
the Environment Protection and Heritage Council to develop nationally applicable
guidelines and standards for hazardous chemicals in consultation with the states
and territories, industry and community groups.
The department administers the Hazardous Waste (Regulation of Exports and
Imports) Act 1989, which implements Australia’s obligations under the Convention
on the Control of the Transboundary Movements of Hazardous Wastes and Their
Disposal (the Basel Convention). In 2004–05 a total of 13 permit applications were
processed (nine export and four import), and 12 permits were granted, with one
export application refused.
Compliance and education are important aspects
of administering the Act. In 2004–05 compliance
activity included an analysis and audit of zinc
sulfate and zinc oxide imported for agricultural
use. Some recent imports of zinc compounds
had been heavily contaminated with cadmium,
which rendered them unsuitable for agricultural
use (left). A survey of imports for 2004–05 was
initiated. Samples were taken of seven separate
imports at ports in Queensland, New South
Wales, Victoria and South Australia, and chemical
analysis showed that all were free of significant
contamination by cadmium, lead or other
Sampling of bulker bags undesirable heavy metals.
containing zinc sulfate
contaminated with cadmium Some hazardous substances are particularly
Photo: Greg Rippon difficult to dispose of safely. The department
is implementing the National Strategy for the
Management of Scheduled Waste, which provides for the safe management and
disposal of polychlorinated biphenyls, hexachlorobenzene and organochlorine
pesticides wastes in cooperation with the states and territories
(see www.deh.gov.au/industry/chemicals/publications/strategy-1992).
In early 2005 the department became aware of the export of large volumes of
unsorted co-mingled household recyclable waste (which is classified as hazardous

waste under the Act and the Basel Convention) from Western Australia to Hong
Kong. Three containers were seized at Fremantle docks, and the minister ordered
a further 10 containers already at sea to be re-imported into Australia. The
department alerted municipal authorities, exporters and others concerned with the
handling and disposal of domestic waste to the requirement for properly sorting
recyclable components of waste (into plastic, paper, metals and so on) before
export is legal under the Act.
The international trade in old electronic and electrical equipment (‘e-scrap’) is a
growing problem, and in a series of meetings over 2004–05 the department and
relevant sectors of industry developed criteria for deciding when old electronic and
electrical equipment destined for export is a waste, and hence subject to control
under the Act. These criteria can be found at
www.deh.gov.au/minister/env/2005/mr18jul205.html.
A detailed report on the operation of the Hazardous Waste (Regulation of Exports
and Imports) Act 1989, which covers the 7th meeting of the conference of the
parties to the Basel Convention, and the development of new criteria for exporting
and importing hazardous electronic waste, is included in the second volume of this
set of annual reports.
Strategic international approach to chemicals

In 2002 the World Summit on Sustainable Development urged international
organisations to cooperate in improving international chemicals management.
The Governing Council of the United Nations Environment Programme
in February 2003 began developing a Strategic Approach to International
Chemicals Management. The purpose of the strategic approach is to ensure that
internationally chemicals are used and produced in ways that mitigate significant
adverse impacts on human health and the environment by the year 2020.
The department is leading Australia’s input. Australian priorities include agreement
on domestic and international governance benchmarks for chemicals management,
ensuring information on chemicals is generated and made available to those that
need it, and extending existing cooperative models (especially those established
through the Organisation for Economic Cooperation and Development) to the
wider global community. The department expects the outcomes of the work will
be adopted at the Global Ministerial Environment Forum meeting in February 2006.
In a parallel process, the Governing Council of the United Nations Environment
Programme agreed to an international programme aimed at reducing mercury
emissions. As part of this effort the department began developing a plan to address
mercury releases in Australia.
See also: United Nations Environment Programme, page 163.
115
Persistent organic pollutants

In May 2004 the Stockholm Convention on Persistent Organic Pollutants came into
force. Australia ratified the convention on 20 May 2004 and became a party on
18 August 2004.
The convention includes restrictions on 12 listed chemicals, including many of the
substances in the National Strategy for the Management of Scheduled Waste agreed
by the Australian Government and all states and territories more than a decade ago.
The strategy provides for the safe management and disposal of polychlorinated
biphenyls, hexachlorobenzene and organochlorine pesticides wastes in Australia.
Bans are already in place on the production and import of most of the chemicals
listed in the convention. In 2004–05 Australia registered an exemption to use Mirex
as a bait control for the giant termite in the Northern Territory, as no other pesticide
is available to protect certain kinds of fruit trees from this particular pest
(see www.pops.int/documents/registers/specexempt.htm). Research is under way
to identify an alternative so that the exemption can be withdrawn.
The department led the Australian delegation to the first meeting of the conference
of the parties to the convention, held in Uruguay 2–6 May 2005. Outcomes
included the establishment of a Persistent Organic Pollutants Review Committee
to assess new chemicals for possible inclusion on the convention, and an expert
group to conclude the development of guidelines for best available technology and
best environmental practices for reducing emissions of unintentionally produced
persistent organic pollutants such as dioxins.
During the year the department began developing a national implementation plan
that sets out how Australia will meet its obligations under the convention. This plan
will reflect the achievements in phasing out, removing and destroying persistent
organic pollutants in Australia over the past two decades as well as identifying
further actions Australia will take to give full effect to its obligations.
The three-year National Dioxins Programme was established in 2001–02 to improve
knowledge about dioxins in Australia and to determine appropriate measures
aimed at reducing or eliminating releases. During the year the department
commissioned further research to determine the extent to which dioxins are
formed in bushfires. Results are due in late 2005.
On behalf of the Environment Protection and Heritage Council, the department
developed a National Action Plan for Addressing Dioxins in response to the
findings of previous studies funded under the programme. The council released
the plan for public comment on 1 July 2005 (see www.ephc.gov.au/ephc/
dioxins.html). The action plan will contribute to Australia’s obligations under the
Stockholm Convention in relation to dioxins.

With moves by some countries to recommend the inclusion of some brominated
flame retardant chemicals on the Stockholm Convention, the department
commissioned three studies to investigate the levels of these chemicals in the
Australian population, indoor air and aquatic sediments. The results, which
are expected in late 2005, will contribute to Australia’s policy position in the
convention’s review committee. The results will also contribute to a national
assessment of these chemicals being undertaken by the National Industrial
Chemicals Notification and Assessment Scheme.
Informed consent to imports

In February 2004 the Rotterdam Convention on the Prior Informed Consent Procedure
for Certain Hazardous Chemicals and Pesticides in International Trade came into
force. The procedure set up under this convention enables countries to decide
whether to allow the import of chemicals listed under the convention. Australia
ratified the convention on 20 May 2004 and became a party on 18 August 2004.
The department led the delegation to the first meeting of the conference of the
parties, held in Geneva, Switzerland, from 20–24 September 2004. Prior to the
meeting, countries had nominated new chemicals to add to the list under the
convention. The conference added all these chemicals to the list. The department
also participated in the first meeting of the convention’s Chemical Review
Committee, from 11–18 February 2005, which reviewed Australia’s nomination of
chrysotile asbestos. The committee agreed to forward Australia’s nomination to the
next conference of the parties.
National risk management framework

The department continued to work with the states and territories to develop the
National Environmental Risk Management Framework for Chemicals. The proposed
framework will establish agreed priorities for environment protection and:
• make sure that the agencies responsible for assessing chemicals consider
environmental issues from the outset of assessment processes
• make sure that risk management actions are applied consistently across
jurisdictions
• set up benchmarks and a national monitoring system.
As part of this work the Environment Protection and Heritage Council responded to
stakeholder concerns about the difficulties of finding information about chemicals.
As a result the National Chemical Information Gateway was launched in April 2004
(see hermes.erin.gov.au/pls/cig_public/!CIGPPUBLIC.pStart). During 2004–05 the
gateway received over 60 000 hits. In addition the National Chemical Reference
Guide was launched on 29 June 2005. The guide brings together all environmental
standards and guidelines in a central searchable database for over 600 chemicals.
117
Gene technology risk assessments

The Gene Technology Regulator, within the Department of Health and Ageing,
regulates genetically modified organisms under the Gene Technology Act 2000.
This Act requires the regulator to seek advice from the Minister for the
Environment and Heritage for each intentional release of genetically modified
organisms into the environment. Advice is sought initially on the issues to be
addressed when preparing risk assessment and risk management plans, and then
later on the plans themselves once prepared.
In 2004–05 the Gene Technology Regulator sought the minister’s advice on 17
occasions in relation to 10 licence applications. The minister provided advice to the
regulator on all occasions, and within the statutory deadline. As a result environmental
factors were adequately addressed by the regulator for each licence granted.
In 2004–05 assessments were provided to the Australian Pesticides and Veterinary
Medicines Authority on five agricultural applications involving the use of
genetically modified organisms or biological control agents, to ensure there were
no unintended adverse environmental effects as a result of these releases.
The department received $0.5 million under the National Biotechnology Strategy to
improve basic knowledge and assist with the assessment of environmental risks for
provision of advice to the Gene Technology Regulator. Contracts were let for seven
projects covering:
• a survey of feral cottons in northern Queensland
• modelling the environmental impacts of genetically modified versus non-
genetically modified, herbicide-tolerant canola
• future genetically modified organisms and their environmental impacts
• risks associated with the use of new and emerging technologies
• the persistence and effects on soil organisms of Bt-toxin from genetically
modified cotton
• research into viral recombination and its environmental effects
• a review of viral vectors and viral genes used in genetically modified organisms,
and their impacts.
Two additional consultancies were commissioned to research the potential
environmental risks if genetically modified organisms that have been developed
overseas were brought into Australia unintentionally or illegally. This will assist
with the development of policies to manage the risk that genetically modified
organisms are present in imports unintentionally.

Chemical risk assessments
The department provides other Australian Government regulators with advice on
the environmental impacts of new chemicals.
Agricultural and veterinary chemicals

(Service provided to the Australian Pesticides and Veterinary Medicines Authority)
The Australian Pesticides and Veterinary Medicines Authority regulates agricultural
and veterinary chemicals. One test for registering a chemical product is whether
the product is likely to harm the environment when used according to its
instructions. The authority seeks the department’s advice when applying this
test. The authority provides funding in return for this service under an agreement
with the department. In 2004–05 the department received $0.6 million under this
agreement in return for carrying out 94 environmental risk assessments for new
uses of agricultural and veterinary chemicals, a slight decline from the previous
year (chart below). The department increased its assessment efficiency, completing
95 per cent of assessments within the timeframe agreed with the authority, an
increase from 70 per cent for the previous year.
Industrial chemical assessments (1998–present)

Number of assessments in 2004–05 = 208
.UMBEROFASSESSMENTSUNDERTAKEN

EACHYEAR

9EAR
As part of the Australian Pesticides and Veterinary Medicines Authority’s ongoing

review of existing chemicals, the department prepared environmental risk
assessments for the herbicides paraquat and diuron. These assessments and the
department’s recommendations were forwarded to the authority for consideration.
The department also began assessing the herbicide 2,4-D (dichlorophenoxyacetic
acid) and the nematocide fenamiphos.
119
The department also continued to advise on the proper disposal of used agricultural
chemicals through industry programmes such as ChemClear and DrumMuster.
ChemClear is the industry-driven initiative that aims to provide farmers with a
disposal service for unwanted registered agricultural and veterinary chemicals.
DrumMuster provides for the collection and recycling of empty chemical containers.
Both initiatives ensure farmers are now better informed about the effects of
chemicals on productivity, product quality, the environment and local communities.
Industrial chemicals
(Service provided to the National Industrial Chemicals Notification and Assessment
Scheme)
The National Industrial Chemicals Notification and Assessment Scheme regulates
industrial chemicals. The department assesses the potential environmental impact
of new industrial chemicals on behalf of the scheme. The scheme provides funding
in return for this service under an agreement with the department. In 2004–05
the department received $0.4 million under this agreement in return for carrying
out 208 environmental risk assessments for new industrial chemicals, the highest
number since 1998–99 (chart below).
Agricultural and veterinary chemical assessments (1998–present)

Number of assessments in 2004–05 = 94

.UMBEROFASSESSMENTS
UNDERTAKENEACHYEAR

9EAR
The department increased its assessment efficiency, completing 95 per cent within
the agreed timeframe, an increase from 60 per cent for the previous year.
The National Industrial Chemicals Notification and Assessment Scheme is
reviewing priority chemicals that have already been authorised for use. As part
of the review programme the department continued work on environmental risk
assessments for sodium cyanide and triclosan. A review of tris (2,3-dibromopropyl)
phosphate was completed.

Supervision of uranium mining in the Alligator Rivers Region
The Alligator Rivers Region, some 220 kilometres east of Darwin, includes Kakadu
National Park. The region contains a number of former, current and potential
uranium mines, including:
• Ranger, which is currently being mined
• Nabarlek, where mining has ceased and rehabilitation is under way
• Jabiluka, which has been in long-term care and maintenance since December 2003
• Koongarra, a potential mine that is the subject of discussions between the
traditional Aboriginal owners and the mining company, Koongarra Pty Ltd.
None of the sites listed above are within Kakadu National Park. Other, smaller
uranium deposits were mined during the 1950s and 1960s in what is now the
southern portion of Kakadu National Park.
Under the Environment Protection (Alligator Rivers Region) Act 1978, the
Supervising Scientist is responsible for making sure the environment in the
Alligator Rivers Region is protected from uranium mining. Revised Working
Arrangements, which set out the roles and responsibilities of the Supervising
Scientist, the Northern Territory Department of Primary Industry, Fisheries and
Mines, and the Department of Industry, Tourism and Resources were signed off by
Australian and Northern Territory government ministers on 30 May 2005.
The Supervising Scientist carries out tasks such as routine inspections and audits
of mine sites and research into the environmental effects of uranium mining in the
region. The department’s Supervising Scientist Division supports this work.
Work to date indicates that the environment of the Alligator Rivers Region remains
protected from the impacts of uranium mining.
Contamination incidents at Ranger mine

On 30 August 2004 the Supervising Scientist’s reports of investigations into recent
incidents at the Ranger mine were tabled in the Senate.
The first report investigated a water contamination incident. On 23–24 March 2004
process water (containing uranium and other toxicants) contaminated the mine’s
drinking water supply. Some mine workers drank and washed in the contaminated
water. Some of the contaminated water escaped into the environment through an
overflowing holding tank at Jabiru East near the mine. The Supervising Scientist
found that the maximum radiation exposure of workers was likely to have been
much less than the regulatory limit, and that no harmful long-term health effects
are likely.
121
The second report investigated three incidents between November 2003 and
March 2004 where vehicles left the Ranger site without adequate radiation
clearance. In two cases the vehicles had been inadequately cleaned but had been
cleared to leave the mine site. In the third case, a vehicle had not been cleaned
or cleared to leave the mine site, but was taken to nearby Jabiru. These incidents
resulted in radiation exposure of a member of the public and his children. The
Supervising Scientist found that radiation exposure estimates for the people
affected by these incidents were approximately equal to the dose limit for members
of the public, and that no harmful long-term health effects are likely.
None of the incidents resulted in any harmful impact on the environment outside
the Ranger mine. The Supervising Scientist made recommendations for improving
management practices at the mine site in both reports, and these formed the basis
for a series of conditions imposed on Energy Resources of Australia Ltd by the
Minister for Industry, Tourism and Resources under the Atomic Energy Act 1953.
The Northern Territory Department of Primary Industry, Fisheries and Mines, as
day-to-day regulators of the Ranger mine, subsequently charged Energy Resources
of Australia Ltd under the Northern Territory’s Mining Management Act 2001.
Energy Resources of Australia Ltd was convicted of two charges on 31 May 2005
and fined a total of $0.2 million.
The Supervising Scientist is required to report annually to the Minister for the
Environment and Heritage. This report, which contains more detailed information
about these and other developments, is available at www.deh.gov.au/ssd/about/
corporatedocs.html.

Product stewardship schemes
Number of projects or activities approved under 39 projects (3—plastic bags, 2—degradable plastics,
each programme 2—co-regulatory framework, 2—newsprint waste,
30—oil recycling)
Degree to which projects, activities, agreements or High—major retailers achieved 27% reduction in
plans contribute to the output bag use by the end of 2004; litter from lightweight,
‘singlet’-type plastic bags reduced
More ability to recycle used oil, with more than 800
collection facilities established nationwide
Over $13.5 million in benefits paid on over 220
million litres of recycled used oil
Other activities supported planned recycling
schemes for tyres and televisions
National Packaging Covenant
Number of projects or activities approved under 2 activities (revised National Packaging Covenant,
each programme varied National Environment Protection (Used
Packaging Materials) Measure)
Degree to which projects, activities, agreements or Medium—evaluations found the previous covenant
plans contribute to the output a qualified success; revised covenant should
contribute significantly to improving environmental
quality
Environmental reporting

each programme
Degree to which projects, activities, agreements or High—focused on contributions to 2006 State of the
plans contribute to the output Environment report
National Pollutant Inventory

each programme
Degree to which projects, activities, agreements or High—focused on implementing or improving the

plans contribute to the output National Pollutant Inventory
123
Hazardous substances regulation
Number of projects or activities approved under 4 projects (1—National Dioxins Programme,

each programme 3—persistent organic pollutants)
Degree to which projects, activities, agreements or High—will help assess environmental levels of
plans contribute to the output dioxins and brominated flame retardants
Gene technology risk studies (excludes projects funded under agreement with Department of Industry,
Tourism and Resources)

each programme
Degree to which projects, activities, agreements or High—will improve basic knowledge for assessing
plans contribute to the output environmental risks associated with genetically
modified organisms
All programmes

Commonwealth Contribution to the National Environment Protection Council (NEPC) Service Corporation
(Administered item)
The Australian Government’s financial obligation to Financial obligations were fully met
the service corporation is met
The Australian Government’s contribution to the Contributions were paid on time

operating costs of the service corporation is paid
on time
Extent to which statutory timeframes are met under High—all permit applications were processed within
legislation the statutory timeframes
Number of permits or applications considered 12 hazardous wastes permits granted (1 application

(granted and refused) under legislation refused)

requirements

International

Extent to which Australia’s strategic objectives are High—all cables from delegations indicated that
achieved through international forums Australia’s objectives were achieved, including
engagement in meetings under multilateral
environment agreements, as well as overarching
multilateral forums such as the Commission on
Sustainable Development and the United Nations
Environment Programme
Information and education products distributed to Worked with retailers to deliver effective consumer
stakeholders (measured by web site hits, information awareness campaign on plastic bags
~300 information packages on oil recycling
distributed to libraries, universities and TAFEs
Quarterly newsletter Degradable Plastics in Australia
distributed
2 policy discussion papers on degradable plastics
released to key stakeholders and policy workshop
convened
2 test standards for biodegradability of plastics
published by Standards Australia
Advertising in national newspapers and magazines
promoted newsprint recycling and fully used the
free advertising space worth $0.1 million provided
by the Publishers National Environment Bureau
Average of 39 094 user sessions per month on the
human settlements-related part of the department’s
web site, 15 901 user sessions per month on the
National Pollutant Inventory web site, 4 869 user
sessions per month on the oil recycling web site,
and 673 user sessions per month on the Supervising
Scientist’s web site
National Chemical Information Gateway received
over 60 000 hits since April 2004
Information and education material was provided
by the Supervising Scientist on request throughout
2004–05
125
Number of research reports, articles and papers 2 reviews of the Product Stewardship for Oil
prepared and publicly released Programme released in November 2004
Presentations on product stewardship and
degradable plastics delivered to the Plastics and
Chemicals Industries Association, June 2005
Paper on National Dioxins Programme presented
at Dioxins 2004 symposium (24th International
Symposium on Halogenated Environmental Organic
Pollutants and Persistent Organic Pollutants) in
Berlin, September 2004
38 research reports, articles and papers on
environmental protection at uranium mines in the
Alligator Rivers Region

Annual report on the operation of the Product Stewardship (Oil) Act 2000
included in the second volume of this set of annual reports
Annual report on the operation of the Water Efficiency and Labelling Standards
Act 2005 included in the second volume of this set of annual reports
Annual report on the operation of the National Environment Protection Council
Act 1994 at www.ephc.gov.au/php/list_document_types.php
Annual report on the operation of the Hazardous Waste (Regulation of Exports
and Imports) Act 1989 included in the second volume of this set of annual reports
Annual report of the Supervising Scientist on the operation of the Environment
Protection (Alligator Rivers Region) Act 1978 at
www.deh.gov.au/ssd/about/corporatedocs.html

Legislation
Captains Flat (Abatement of Pollution) Agreement Act 1975
Environment Protection (Alligator Rivers Region) Act 1978
Hazardous Waste (Regulation of Exports and Imports) Act 1989
Koongarra Project Area Act 1981
National Environment Protection Council Act 1994
National Environment Protection Measures (Implementation) Act 1998
Product Stewardship (Oil) Act 2000
Water Efficiency and Labelling Standards Act 2005
Resources
$’000 $’000
Sub-output: Human settlements 24 109 19 836

Sub-output: Environmental protection at uranium mines in the 7 488 9 487
Alligator Rivers Region
Total (=Output 1.6: Human settlements) 31 597 29 323
Administered items
Commonwealth Contribution to the National Environment 429 429

Protection Council (NEPC) Service Corporation

(1)
127
Inland waters
The Department of the Environment and Heritage develops Australian Government

initiatives to ensure that the management of inland rivers, groundwater and inland
wetlands is ecologically sustainable.
• Environmental aspects of water reform

Land, Water and Coasts
(including community water grants)
Division
• Wetlands of international importance
Supervising Scientist
• Tropical rivers and wetlands research
Division
Natural Resource
• Rivercare (a theme of the Natural Heritage Trust)
Management
• Strengthening Tasmania—Tamar River pylons
Programmes Division
Objectives
• To ensure that the environment and communities continue to benefit from fresh
water being available
• To advance water reform towards sustainable management of Australia’s rivers
• To enhance the protection of inland wetlands

Inland waters
Main results
• The department contributed to the development of the Australian
Government’s implementation plan for the National Water Initiative
• Under the Australian Government Water Fund, part of the National Water
Initiative, the first round of Community Water Grants was funded to show
how local communities can save water
• The Murray–Darling Basin Ministerial Council agreed to four packages of
water recovery projects to help secure The Living Murray’s first
240 gigalitres for environmental goals
Environmental aspects of water reform

Australia is the driest permanently inhabited continent. Evaporation rates are very
high. Annual rainfall of less than 600 millimetres per year characterises 80 per cent
of the land. Rainfall can vary enormously from one year to the next. Drought is a
regular feature of our climate.
The Australian State of the Environment 2001 report found that about 26 per cent
of Australia’s surface water management areas were close to or had exceeded
sustainable extraction limits, with particular pressure in Australia’s south-east.
In response to these pressures Australian governments are working together
to increase the efficiency of water use and to ensure the health of river and
groundwater systems.
National Water Initiative

At the June 2004 meeting of the Council of Australian Governments the Prime
Minister and most premiers agreed to establish the National Water Initiative. The
National Water Initiative establishes actions, timelines and monitoring to implement
major water reforms over the next 10 years.
Many of these reforms will help to protect the environment. For example,
governments have agreed to identify and protect important conservation values for
surface and groundwater systems, and return over-allocated river and groundwater
systems to sustainable levels of use. Water allocated to meet agreed environmental
and other public benefit outcomes will be given statutory recognition. Allocations
for the environment will have at least the same degree of security as water
allocated to consumers.
129
Inland waters
Several ministerial councils are overseeing implementation of the National Water

Initiative, including the Natural Resource Management Ministerial Council, the
Environment Protection and Heritage Council and the Murray–Darling Basin
Ministerial Council.
To help implement the initiative, the Australian Government established the
National Water Commission in the Prime Minister’s portfolio as a statutory agency
under the National Water Commission Act 2004 on 17 December 2004. The
department advised the government on the commission’s work programme and
coordination arrangements.
In signing on to the National Water Initiative governments agreed to put
implementation plans in place by 30 June 2005. These plans establish the roles,
key tasks and timelines for government agencies to implement the reforms. The
department contributed to the development of the Australian Government’s
implementation plan. The department’s contribution focused on ways to implement
the environmental components of the reforms, which are explained below.
See also: parliamentary committees (responses to inquiries into rural issues), page 205.
The Living Murray ‘first step’ agreement

The Murray–Darling Basin covers one-seventh of the continent and generates
about 40 per cent of the national income derived from agriculture and grazing.
Water storage and regulation has affected the natural cycles of rivers and
groundwater in the Murray–Darling Basin. In response, the Murray–Darling Basin
Ministerial Council (a council of government ministers responsible for managing
the basin’s water resources) set up The Living Murray initiative in May 2002 to
analyse various options for action and consult communities across the basin. As a
result on 14 November 2003 the ministerial council agreed to a ‘first step’ towards
increasing the amount of water allocated for environmental goals.
The first step aims to achieve environmental objectives at six environmentally
important features of the River Murray. The ministerial council has termed these
areas ‘significant ecological assets’. Five of these features include Ramsar-listed
wetlands and the sixth is the River Murray channel itself. The water will be
recovered through a range of means, including improvements in efficiency and
infrastructure, and possibly through direct purchase from willing sellers. The
first step agreement also includes a $150 million programme of capital works
and complementary actions to effectively manage the water and maximise
environmental outcomes.
In August 2003 the Australian Government and the governments of New South
Wales, Victoria, South Australia, and the Australian Capital Territory committed

Inland waters
a total of $500 million over five years (2004–2009) to recover the water needed
for the first step agreement. Of this, the Australian Government is contributing
$200 million through the Department of Agriculture, Fisheries and Forestry. This
commitment was given effect through an agreement to implement the Living
Murray initiative first step that was signed at the Council of Australian Governments
meeting on 25 June 2004 at the same time as the National Water Initiative
(see www.coag.gov.au). The first water recovery projects are now under way
(see below).
On 26 November 2004 the Murray–Darling Basin Ministerial Council agreed to The
Living Murray Business Plan. The plan sets out how the participating governments
will achieve the actions and milestones in the June 2004 agreement. The plan came
into effect on 1 April 2005 with the activation of the National Water Initiative.
During the year the department worked with other Australian and state
government agencies, and the office of the Murray–Darling Basin Commission
(the executive arm of the ministerial council) to implement the plan.
See also www.thelivingmurray.mdbc.gov.au.
First water recovery projects

In November 2004 the Murray–Darling Basin Ministerial Council agreed to four
packages of water recovery projects to help secure The Living Murray’s first
240 gigalitres for environmental goals. Victoria and New South Wales each
proposed two of the packages:
• the Goulburn–Murray Water Recovery Package, Victoria (145 gigalitres)
• the Lake Mokoan Water Recovery Package, Victoria (24 gigalitres)
• New South Wales Water Recovery Proposal A (nine gigalitres)
• New South Wales Water Recovery Proposal B (62 gigalitres).
The projects will cost around $179 million, and will be implemented over several
years. The department is now working with the Department of Agriculture,
Fisheries and Forestry to negotiate the terms and conditions of the Australian
Government investment in these projects.
Water management plans

The Murray–Darling Basin Commission is developing plans to make sure that water
recovered for the environment achieves the environmental objectives of The Living
Murray first step: Asset Environmental Management Plans for the six ‘significant
ecological assets’; and a Living Murray Environmental Watering Plan to guide
overall decision-making.
131
Inland waters
The commission has established the Environmental Watering Group to oversee

the development of these plans. The department chairs this group. The ministerial
council approved an interim version of the Living Murray Environmental Watering
Plan in November 2004. The department consulted state agencies to ensure that the
asset plans adequately address environmental matters such as Ramsar wetlands,
migratory species and threatened species. The 2005–06 versions of all the plans are
due for approval in September 2005.
Interaction between surface and groundwater

Groundwater, which sustains a range of natural habitats, is extensively used
for urban water supplies, agriculture, irrigation, industry and mining. The
National Water Initiative identified the need for more work to increase scientific
understanding of groundwater. Specifically, more needs to be done to understand
interactions between surface and groundwater, and in particular the water
requirements of groundwater-dependent ecosystems. In response, during 2004–05
the department invested $0.3 million from departmental funds and the Natural
Heritage Trust in the Environmental Water Allocation programme managed by
Land and Water Australia, a research and development corporation.
National Guidelines on Water Recycling

The National Water Quality Management Strategy aims to protect the quality of
water resources while supporting economic and social development. Part of the
strategy is to develop the National Guidelines on Water Recycling—Managing
Health and Environmental Risks. These guidelines will cover the recycling of
treated sewage effluent, grey water and storm water for non-drinking purposes
such as agricultural uses, garden watering, car washing and toilet flushing. They
are needed to support the urban water reforms under the National Water Initiative.
The department has been working with the Department of Agriculture, Fisheries
and Forestry and state and territory agencies to develop these guidelines since
October 2003. The guidelines are being prepared in two stages. The department
expects to submit the first stage—the sewage and grey water component—to the
October 2005 meetings of the Environment Protection and Heritage Council and
the Natural Resource Management Ministerial Council for clearance to go to public
comment. Work on the second stage, covering storm water and water sensitive
urban design, will start in late 2005 or early 2006.
Community Water Grants

(Administered item)
The Community Water Grants are part of the $2 billion Australian Government
Water Fund. The grants will provide $200 million over five years (2004–2009)
to promote a culture of wise water use in the community. During the year the

Inland waters
department set up the Community Water Grants jointly with the Department of
Agriculture, Fisheries and Forestry. In a preliminary, demonstration round of
funding $1.0 million was provided to show what types of community groups
and projects could be funded. Ministers approved 27 applications from schools,
local government, community groups and Indigenous groups across the country
(see map below). The projects ranged from installing tanks and water efficient
appliances, to using grey water for garden irrigation, to re-vegetating creek banks
and wetlands to prevent erosion and improve water quality. The first full round of
grants started in July 2005. See www.communitywatergrants.gov.au for details.
First round of Community Water Grants
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Wetlands of international importance

Australia’s wetlands support large numbers of species of flora and fauna. They
include species that are found nowhere else as well as species (particularly birds)
that migrate between continents. However wetlands are under threat globally and
nationally from expanding agriculture and urban settlement. Wetlands are often
drained and cleared. Less water is available to flood naturally onto the remaining
wetlands. Salts, nutrients or pollution may contaminate this water. The Australia
State of the Environment 2001 report found that 80 of Australia’s important
wetlands are affected by salinity and this figure could rise to 130 by the year 2050.
The Australian Government is a party to the Convention on Wetlands of
International Importance especially as Waterfowl Habitat, commonly called the
Ramsar Convention. The department represents Australia’s interests in international
133
Inland waters
forums on wetlands including the Ramsar Standing Committee, which usually

meets twice a year, and the Ramsar Scientific and Technical Review Panel. The
department also works with state and territory governments to improve the quality
and availability of information that can improve the management of wetlands.
This information includes Ramsar Information Sheets, ‘ecological character’
descriptions, wetland inventories and maps, and maintaining the Directory of
Important Wetlands in Australia.
of the Natural Heritage Trust, mainly on developing a method for describing the
‘ecological character’ of wetlands, supporting the management of four privately
owned wetlands in New South Wales, and wetlands communications products.
Describing the ecological character of wetlands

The Ramsar Convention obliges member countries to protect the ‘ecological
character’ of wetlands listed under the convention. In Australia this obligation is
prescribed in the Environment Protection and Biodiversity Conservation Act 1999.
The department has funded the development of a standardised method for
describing the ecological character of wetlands, putting Australia at the forefront of
this work internationally. The department is now testing the method on a number
of Ramsar sites and will continue to refine it over time. The method will help
determine what actions could have ‘significant impacts’ on Ramsar wetlands under
the Environment Protection and Biodiversity Conservation Act 1999.
Privately owned Ramsar sites

Many wetlands listed under the Ramsar
Convention are on private land. The
department works with the landowners
and managers to make sure the
internationally recognised values of
these Ramsar sites are protected. There
are a number of dimensions to this
work, including assessing the ecological
character of the sites, assisting in the
Shortlands Wetlands, Hunter River estuary development and implementation of
Photo: A Beard
management plans, and promoting more
understanding and awareness of the
Ramsar Convention and listed wetlands. In 2004–05 work focused on four privately
owned Ramsar sites in New South Wales:

Inland waters
• the Gwydir Wetlands
• the Wilgara wetlands component of the Macquarie Marshes
• Fivebough and Tuckerbil Swamps in the Riverina
• the Shortlands Wetlands in the Hunter River estuary (opposite).
An initial description of the ecological character at each of the above sites
was completed in 2004–05. The final versions of these descriptions, including
recommendations for monitoring and management planning, are expected to be
available in 2005–06.
See also: report on the operation of the Environment Protection and Biodiversity
Conservation Act 1999 in the second volume of this set of annual reports.
Tropical rivers and wetlands research

Australia’s northern river systems are poorly understood but are often cited as
offering development potential, chiefly for agriculture, horticulture and mining.
To increase knowledge about their environmental characteristics the department
is investing in the tropical rivers research programme managed by Land and Water
Australia, a statutory research and development corporation within the agriculture,
fisheries and forestry portfolio.
The department’s Supervising Scientist Division includes the Environmental
Research Institute of the Supervising Scientist. The institute advises on the
management of the extensive wetlands in northern Australia. It is a partner in
the National Centre for Tropical Wetland Research and publishes a wide range of
scientific research on tropical wetlands and rivers. The institute is also a member of
Land and Water Australia’s National Rivers Consortium.
During 2004–05 the department spent $0.3 million from the Natural Heritage
Trust to commission a first year of research from the National Centre for Tropical
Wetland Research. Land and Water Australia has agreed to provide resources for
additional work and is seeking additional partners for this programme.
Other work through the National Centre for Tropical Wetland Research supported
the Southern Gulf Environmental Information Programme, which is helping to
assess marine and estuarine environments of the southern Gulf of Carpentaria. The
programme will identify pressures in key locations, review management responses,
map wetlands, and benchmark data for biota in key river reaches.
Further information on the activities of the Environmental Research Institute of
the Supervising Scientist and the National Centre for Tropical Wetland Research is
included in the Supervising Scientist’s annual report at www.deh.gov.au/ssd.
135
Inland waters
Rivercare
Rivercare is that part of the Natural Heritage Trust invested in improving water
quality and the environmental condition of river systems and wetlands. Total
expenditure under Rivercare was $52.1 million in 2004–05. Results are reported in
the annual reports of the Natural Heritage Trust available at
www.nht.gov.au/publications/index.html#annual-reports.
Strengthening Tasmania—Tamar River pylons

(Administered item)
During 2004–05 the department managed a government programme of $0.5 million
to install pylons at the edge of the North Esk River, a tributary of the Tamar near
Launceston, Tasmania. The funding will help improve river health, boost flood
protection and increase recreational opportunities on the North Esk River.

Conservation of Internationally and Nationally Important Wetlands (See Natural Heritage Trust annual report)
Number of projects or activities approved under (See Natural Heritage Trust annual report)
each programme
Number of agreements, plans and management 1 Ramsar site management plan (provided input to
arrangements put in place 3 other draft plans)
10 draft maps of nationally important wetlands in
Tasmania
2 spatial data sets (Queensland and New South
Wales) consisting of 210 nationally important
wetlands in Queensland and 178 in New South
Wales
15 ecological character descriptions of Ramsar sites
initiated
Degree to which projects, activities, agreements or High—contributed to the conservation of

plans contribute to the output internationally and nationally important wetlands

Inland waters
Lake Eyre Basin
Number of projects or activities approved under 3 projects (draft hydrological atlas for the Lake Eyre
each programme Basin; draft methodology for the Lake Eyre Basin
Rivers Assessment; approval of a project to install
and commission 3 stream gauging stations in the
Lake Eyre Basin in 2005)
Degree to which projects, activities, agreements or High—contributed to the conservation of inland

plans contribute to the output waters of the Lake Eyre Basin
Both programmes

Rivercare (Administered item—part of the Natural Heritage Trust) See page 160
Extent to which statutory timeframes are met under 100%

legislation
International
Percentage of written pre-meeting objectives at 100% (Ramsar Standing Committee meeting)

Extent to which Australia’s strategic objectives are High—strategic objectives developed for water
achieved through international forums outcomes of 13th session of United Nations
Commission on Sustainable Development
Implementation of the Ramsar Convention remains
a priority for Australia and is consistent with our
strategic objectives
137
Inland waters
Information and education products distributed to Wetlands communication products (postcard,

stakeholders (measured by web site hits, information poster, sticker series, fridge magnet and fact sheets)
material distributed, etc) distributed across Australia for World Wetlands Day
(2 February 2005) and national World Wetlands Day
events calendar published online
5 consultative meetings for Lake Eyre Basin
stakeholders (3 meetings of the Lake Eyre Basin
Community Advisory Committee; 1 Indigenous
forum; 1 Lake Eyre Basin Biannual Conference)
inland waters-related part of the department’s web
site
Number of research reports, articles and papers 16 research reports, articles and papers on tropical
prepared and publicly released wetland ecology and conservation

Annual report of the National Action Plan for Salinity and Water Quality at
www.nrm.gov.au/publications/#books
on page 158.
Legislation

Inland waters
Resources
$’000 $’000
Sub-output: Rivers, groundwater and wetlands 9 113 8 818

Sub-output: Tropical wetland ecology and conservation 4 719 4 159
Total (= Output 1.7: Inland waters) 13 832 12 977
Administered items
Natural Heritage Trust – Rivercare 83 700 52 092

Australian Government’s Community Water Grants Programme 1 000 1 000
Strengthening Tasmania – Tamar River pylons 500 500
Total 85 200 53 592

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139
Land
The Department of the Environment and Heritage works to ensure the

management of Australia’s natural and agricultural land is ecologically sustainable.
• Native vegetation management framework

• Environmental aspects of forest agreements Land, Water and Coasts
• Rangelands conservation Division
• Conservation incentives
• Bushcare and Landcare (themes of the Natural

Natural Resource
Heritage Trust)
Management
• Support for the National Action Plan for Salinity
Programmes Division
and Water Quality
Objectives
• To reverse the decline in the extent and quality of Australia’s native vegetation
• To support biodiversity conservation and sustainable natural resource
management in the rangelands
• To improve land management and improve water quality through supporting
regional communities
• To address the impacts of soil salinity

Land
Main results
• The Tasmanian Community Forest Agreement was signed, guaranteeing
protection for 171 300 hectares of forests and initiating a phase-out of
broad-scale clearing
• The Productivity Commission endorsed the Australian Government’s
approach to implementing the Environment Protection and Biodiversity
• An additional 235 perpetual conservation covenants came into operation,
protecting environmental values on 239 654 hectares of private land
Native vegetation management framework

The National Framework for the Management and Monitoring of Australia’s
Native Vegetation is an agreement between Australia’s federal, state and territory
governments. Under the framework governments have agreed to reverse the
long-term decline in the extent and quality of Australia’s native vegetation.
This goal has underpinned related government commitments under the Natural
Heritage Trust, the National Action Plan for Salinity and Water Quality and the
Tasmanian Community Forest Agreement (see next section). For example under
the Natural Heritage Trust state and territory governments have agreed to:
• prevent clearing of endangered and vulnerable vegetation communities and
critical habitat for threatened species
• limit clearing to those instances where biodiversity objectives are not
compromised.
In October 2003 the Australian Government announced $45 million from the
National Action Plan for Salinity and Water Quality to help New South Wales end
broad-scale land clearing and the clearing of protected regrowth vegetation.
New South Wales continued consultation with stakeholders and design of systems
to implement these reforms through 2004–05.
On 13 May 2005 under the Tasmanian Community Forest Agreement Tasmania
agreed to phase out broad-scale clearing and the conversion of native forest to
plantations (see section on forest agreements below).
Reversing the decline of Australia’s native vegetation will help conserve
biodiversity and will make a significant contribution to reducing the net emissions
of greenhouse gases.
141
Land
Review of the framework

The national vegetation framework has been in place since 2001. The Natural
Resource Management Ministerial Council began a review of the framework in
April 2004. The department is providing secretariat support for the review and
expects the review will be completed in 2006.
As part of the review governments are reporting their progress in reversing the
long-term decline in the extent and quality of Australia’s native vegetation and
achieving the framework’s other goals. The review will also:
• document good practice for native vegetation management
• revise the framework to focus on new challenges, such as improving the
condition of Australia’s remnant native vegetation.
Productivity Commission inquiry report on native vegetation laws

On 10 August 2004 the Australian Government tabled in the parliament the
Productivity Commission report on the impacts of native vegetation and
biodiversity regulations (see www.pc.gov.au). The department led development of
the Australian Government’s response to the report.
The Australian Government set up the inquiry in response to concerns by
landholders and farmers’ organisations that native vegetation and biodiversity laws
were having adverse impacts.
The Productivity Commission endorsed the Australian Government’s approach
to implementing the Environment Protection and Biodiversity Conservation
Act 1999. The commission found that some state government regulations were
imposing significant and unnecessary costs on landholders.
The 3 June 2005 meeting of the Council of Australian Governments discussed
native vegetation management, noting the progress made by state and territory
governments and encouraging them to continue examining appropriate regulation.
The Natural Resource Management Ministerial Council will examine good practice
regulation as part of the review of the national vegetation framework.
Environmental aspects of forest agreements

To secure the future of Australia’s forests the Australian Government has negotiated
10 regional forest agreements with four state governments. These agreements meet
the twin objectives of protecting forests in reserves and creating regional jobs in
the forestry industry.
Regional forest agreements are primarily the responsibility of the Department
of Agriculture, Fisheries and Forestry, but the department helps to negotiate

Land
conservation objectives and monitors the environmental outcomes through annual
reporting and five-yearly reviews (see www.rfa.gov.au).
The five-yearly review of the 1997 Tasmanian Regional Forest Agreement was
finalised in late 2002. After considering the review the Australian Government
addressed its recommendations through a supplement to the Tasmanian Regional
Forest Agreement called the Tasmanian Community Forest Agreement.
Tasmanian Community Forest Agreement

The Prime Minister and the Premier of Tasmania signed the Tasmanian Community
Forest Agreement on 13 May 2005. Under the agreement the Tasmanian
Government will establish new reserves to protect 171 300 hectares of forests,
including 45 600 hectares on private land.
A new formal reserve of over 30 000
hectares will protect highly significant
tracts of rare temperate rainforest in the
Tarkine. Nearly all the rainforest in the
Tarkine will be protected. Over half of
the public land in the Styx Valley will
now be protected in reserves (left). A
new Forest Conservation Fund will seek
to reserve over 45 000 hectares of forest
on private land through voluntary sale or
Staff member David Atkinson with one of covenanting.
the world’s tallest hardwood trees in the
Styx Valley By December 2005 new statutory
Photo: M Mohell and the Australian Heritage Photo measures will be developed to prevent
Library the clearing and conversion of rare
and threatened non-forest vegetation
communities. Forest clearing and conversion to plantations will cease on public
land by 2010 and on private land by 2015.
The Australian and Tasmanian governments are investing over $250 million
to implement the agreement over seven years (2004–2010). This includes an
Australian Government contribution of $131.2 million under the agreement and
an additional $25.6 million for other measures that will support the agreement and
deliver on election commitments. In addition the Australian Government has made
provision in its Budget for a market-based programme to protect 45 600 hectares
of private land including the Mole Creek component of up to 2 400 hectares. More
details are available via www.rfa.gov.au.
143
Land
Rangelands conservation
The rangelands, covering 75 per cent of Australia, have special management
needs. Grazing has altered extensive areas through land clearing, over stocking
and inappropriate fire, water and soil management practices. Property managers
who want to invest in restoration may need advice or may lack the means due to
the low overall productivity of the land. The department works cooperatively with
other government agencies to protect the environment in rangeland areas.
of the Natural Heritage Trust.
Identifying conservation values

In a series of collaborative studies with the CSIRO the department investigated
methods such as remote sensing for identifying areas of conservation interest in the
rangelands. The studies increased knowledge about spatial patterns of biodiversity
in the rangelands. The results will be published in 2005–06.
Managing for biodiversity conservation

The department commissioned a series of consultancies on how to reduce key
threats to biodiversity in the rangelands (including property level decision-making,
industry best practice, total grazing pressure, fire and weeds) through improved
management. The results will be presented as a series of publications in 2005–06.
Australian Collaborative Rangelands Information System

The Australian Collaborative Rangelands Information System is a way of bringing
together information about the rangelands that is held by government agencies
and other organisations. The system provides a basis for property management,
regional decision-making and national reporting based on natural resource
information, including biodiversity. During the year the department continued to
support development of the system through a partnership with Queensland, New
South Wales, the Northern Territory, Western Australia, CSIRO and the Department
of Agriculture, Fisheries and Forestry. The Australian Collaborative Rangelands
Information System demonstrated its capacity by providing a report on change in
the rangelands across five pilot regions. For more information,
see www.deh.gov.au/land/management/rangelands/acris.

Land
Conservation incentives
An important aspect of the department’s work is developing incentives for private
landholders to conserve the environment on their land. For example some
landholders can access Natural Heritage Trust funding or Australian Government
tax incentives in return for entering into formal conservation agreements such as
covenants. The department has helped develop information about tax incentives,
‘revolving’ funds and other incentive schemes, and now disseminates this
information through state and territory governments, and regional organisations.
Four conservation covenanting programmes were approved in 2004–05, bringing
the total number of approved programmes to 10.
The department provides direct support from the Natural Heritage Trust for
revolving funds in Victoria, Western Australia, South Australia and New South
Wales. Managed by specialist non-government organisations, revolving funds are
used to buy land in order to protect it under a conservation covenant before selling
it on. The department also supports a national network of managers of revolving
funds and covenanting schemes.
Partly as a result of these activities 235 perpetual covenants came into operation in
2004–05, protecting 239 654 hectares. These figures do not include various types
of agreement used to secure Natural Heritage Trust funding or made under the
Environment Protection and Biodiversity Conservation Act 1999.
Bushcare and Landcare

Bushcare and Landcare are those parts of the Natural Heritage Trust invested in:
• reversing land degradation and promoting sustainable agriculture
• conserving and restoring habitat for native flora and fauna.
Total expenditure in 2004–05 under Bushcare was $119.1 million and under
Landcare was $78.1 million. Results are reported in the annual reports of the
Natural Heritage Trust available at www.nht.gov.au/publications/index.html#annual-
reports.
145
Land
Support for the National Action Plan for Salinity

and Water Quality
(Service provided to Department of Agriculture, Fisheries and Forestry)
The Prime Minister announced the National Action Plan for Salinity and Water
Quality in October 2000. The Australian Government has committed $700 million
over eight years (2000–2008) to implement the plan, building on related work
under the Natural Heritage Trust.
The Department of Agriculture, Fisheries and Forestry is responsible for
administering the National Action Plan for Salinity and Water Quality. The
department provides administrative support to the Department of Agriculture,
Fisheries and Forestry under a purchaser-provider arrangement associated with
a joint Australian Government Natural Resource Management Team, which also
manages the Natural Heritage Trust (see page 158). The department received
$1 million in 2004–05 under the purchaser-provider arrangement.
Through the joint team the two departments are helping people in 56 regions
across Australia to develop integrated natural resource management plans for both
the National Action Plan for Salinity and Water Quality and the Natural Heritage
Trust. The plans set priorities for controlling salinity and protecting water quality.
Once these plans are accredited by the Australian Government, each region
develops an investment strategy, which is the basis for further funding. The total
number of regions with investment strategies accredited under the National Action
Plan for Salinity and Water Quality is now 32.
Regional plans include actions to manage salinity where appropriate to local and
national objectives. Detailed outcomes of investments addressing salinity are
identified in the Regional Programmes Report
(see www.nrm.gov.au/publications/regional-report).
Detailed outcomes of the National Action Plan for Salinity and Water Quality are
reported in the annual reports of the Department of Agriculture, Fisheries and
Forestry (see www.daff.gov.au) and the Regional Programmes Report.

Land
Native vegetation—Vegetation Management
Number of agreements, plans and management 4 agreements (National Biodiversity and Climate
arrangements put in place Change Action Plan; Firewood Code of Practice;
response to Productivity Commission inquiry into
the impact of native vegetation and biodiversity
regulations; response to Council of Australian
Governments Bushfire Inquiry)
Degree to which projects, activities, agreements or High—contributed to better management of native

plans contribute to the output vegetation
Native vegetation—Biodiversity Trends (See also Natural Heritage Trust annual report)

each programme
Degree to which projects, activities, agreements or High—increased understanding of native

plans contribute to the output vegetation condition and change
Conservation Incentives (See also Natural Heritage Trust annual report)

each programme
Degree to which projects, activities, agreements or High—promoted behavioural change by

plans contribute to the output improving landholders’ understanding of available
conservation incentives and by providing networks
and training for organisations delivering incentives
Forests
Number of agreements, plans and management 1 intergovernmental agreement (with Tasmania)

Degree to which projects, activities, agreements or High—supplementary Tasmanian regional forests

plans contribute to the output agreement increased level of representativeness
of reserve system and helped Tasmania to increase
protection of old growth forests
Rangelands (See also Natural Heritage Trust annual report)

each programme
Degree to which projects, activities, agreements or High—supported good practice management of the
plans contribute to the output rangelands
147
Land
All programmes

Bushcare and Landcare (Administered item—part of the Natural Heritage Trust) See page 160
Information and education products distributed to 500 brochures on the Australian Collaborative
stakeholders (measured by web site hits, information Rangelands Information System rangelands
material distributed, etc) Summary of Change in Pilot Regions distributed
7 500 brochures on covenants and related tax
incentives supplied to over 50 organisations and
individuals
land-related part of the department’s web site
Number of research reports, articles and papers 1 Australian Collaborative Rangelands Information
prepared and publicly released System report (another 8 in preparation for release
in 2005–06)

Regional Programmes Report at www.nrm.gov.au/publications/regional-report
on page 158.

Land
Legislation
Resources
$’000 $’000
Output 1.8: Land management 7 047 7 857
Administered items
Natural Heritage Trust – Landcare 80 600 78 079

Natural Heritage Trust – Bushcare 105 400 119 113

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149
Parks and reserves
The Director of National Parks is a statutory office-holder who is responsible

for managing parks and reserves established by the Australian Government to
conserve biodiversity and provide nature- and culture-based tourism opportunities.
The Department of the Environment and Heritage supports the Director of National
Parks, and supports the establishment of protected areas nationally.
• Protected area management

• National Reserve System
Objectives
• To establish and manage Commonwealth protected areas under the
• To assist with the establishment and maintenance of a comprehensive,
adequate and representative system of protected area reserves in Australia
• To establish and manage protected areas on Indigenous-owned estates and
establish joint management arrangements for government-owned protected
areas between Indigenous groups and the relevant government nature
conservation agencies

Parks and reserves
Main results
• The Director of National Parks continued to improve the management
of Commonwealth protected areas, including support for a landmark
tourism vision for Kakadu National Park and adoption of a performance
assessment framework
• Government funding helped to add 212 895 hectares to the National
Reserve System, which now protects 80.9 million hectares
• A strategic national approach for the establishment and management of
the National Reserve System was endorsed by Australian governments
Protected area management

(Purchased output)
Under the Environment Protection and Biodiversity Conservation Act 1999 the
Director of National Parks is responsible for Australian Government protected
areas called ‘Commonwealth reserves’ and ‘conservation zones’. These protected
areas include remote national parks, marine parks and botanical gardens. Kakadu,
Uluru–Kata Tjuta and Booderee national parks are jointly managed with their
Indigenous traditional owners.
The department receives an appropriation for managing these areas and uses it
to purchase management services from the Director of National Parks under a
purchaser-provider arrangement. During the year the department provided
$40.1 million to the director under the arrangement. As a result:
• management of all Commonwealth reserves was carried out in accordance with
the requirements of the Environment Protection and Biodiversity Conservation
Act 1999
• a shared tourism vision for Kakadu National Park was successfully developed
• a performance assessment framework, including agency-level indicators to
inform future reporting, was adopted
• the director led the Australian delegation to the 3rd IUCN (World Conservation
Union) World Conservation Congress in Bangkok, Thailand from 17–25 November
2004, which, inter alia, confirmed the IUCN protected area management categories
and supported review of the guidelines for these categories.
Detailed information about these outcomes appears in the annual report of the
Director of National Parks (see www.deh.gov.au/parks/publications).
See also: marine protected areas, page 68; Heard Island, page 177.
151
Parks and reserves
National Reserve System

The National Reserve System is Australia’s system of terrestrial protected areas.
It represents the collective efforts of federal, state and territory governments,
non-government organisations and Indigenous landholders. The department is
responsible for:
• making sure that the National Reserve System is developed in a consistent way
in each jurisdiction
• managing the Natural Heritage Trust’s National Reserve System Programme,
which includes the Indigenous Protected Areas Programme, and which supports
the systematic identification of new reserves for the National Reserve System.
Project work for these activities is funded through the national component of the
Natural Heritage Trust. During 2004–05 $4.4 million was spent from the Natural
Heritage Trust for land acquisitions and $2.5 million under the Indigenous
Protected Areas Programme.
The National Reserve System now protects 80.9 million hectares (see map, page 154).
Future direction of the National Reserve System

In 2005 the Natural Resource Management Ministerial Council approved a
statement on the future direction of the National Reserve System. The statement
formalises national directions for the next 15 years for making quantifiable progress
towards establishing and managing a comprehensive, adequate and representative
terrestrial reserve system in Australia. It covers the design, establishment and
management of a national reserve system and emphasises the critical role of
partnerships, especially with Indigenous communities. A task force of officials from
each jurisdiction will oversee implementation of the statement.
See www.deh.gov.au/parks/nrs/directions.
Updated information products

The Interim Biogeographic Regionalisation for Australia is a scientifically based
analysis of Australia’s bioregions that provides a nationally agreed framework
for conservation planning, including the National Reserve System (bioregions
are geographic areas defined by a combination of physical and biological
characteristics—for example, terrain, climate and ecological communities—
and are a useful way to analyse patterns of biodiversity). During 2004–05 Parks
Australia updated the regionalisation to include sub-regions.
See www.deh.gov.au/parks/nrs/ibra.
The Collaborative Australian Protected Areas Database contains information on all
protected areas in Australia. During 2004–05 the department finalised the 2004 version
of the database for release later in 2005. See www.deh.gov.au/parks/nrs/capad.

Parks and reserves
National Reserve System Programme
The Natural Heritage Trust’s National
Reserve System Programme supports the
purchasing and covenanting of properties
to add to the National Reserve System
(chart below).
During the year the National Reserve
System Programme helped to buy and
covenant 212 895 hectares of land for
Bush Heritage Judith Eardley Reserve inclusion in the National Reserve System.
Photo: D Tatnell, courtesy Australian Bush Heritage The 22 properties approved in 2004–05
Fund
(map next page) contain 122 vegetation
This 344 hectare reserve in north-central
communities, including five wetlands,
Victoria protects threatened grassy
woodland, the habitat of many declining the majority of which were poorly
woodland birds. It was purchased in 2004 represented or not represented in the
with help from the Australian Government National Reserve System. The properties
through the Natural Heritage Trust’s
National Reserve System Programme. contain 31 threatened or near threatened
communities, and numerous rare and
threatened flora and fauna species (top left).
Projects funded for addition to the National Reserve System (1996–present)

Total area supported by projects to date = 20.781 million hectares
#UMULATIVETOTALAREAADDEDSINCE

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2003–04 figures are estimates.
153
Parks and reserves
National Reserve System
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Indigenous Protected Areas

Programme
The Indigenous Protected Areas Programme
helps Indigenous landowners establish
Indigenous protected areas, which are
non-statutory protected areas that form part
of the National Reserve System (left). The
programme also supports land management
activities in declared Indigenous protected
areas, which are established through
Toogimbie Indigenous Protected Area
contractual arrangements between
Photo: I Haskovec
Indigenous communities and the Australian
This 4 500 hectare protected area is
in the Hay Plains region of New South Government.
Wales. As well as achieving significant
environmental and cultural heritage
During the year the Indigenous Protected
outcomes, the Toogimbie Indigenous Areas Programme funded three new
Protected Area is providing education and projects to develop protected areas at the
employment opportunities. It has twice
Kaanju Homelands (near Coen on Cape
been nominated for a National Landcare
award, and the Nari Nari Tribal Council, York Peninsula), Ngarrabullgan (Mount
which owns the land, has been nominated Mulligan in north Queensland), and at
for an Indigenous Governance award. Anindilyakwa (Groote Eylandt in the Gulf
of Carpentaria—see map next page).

Parks and reserves
Indigenous Protected Areas
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Declared Indigenous protected areas now make up 13.79 million hectares of the
National Reserve System, which is 17 per cent of the total area protected in the
National Reserve System.
See also: Indigenous heritage, page 95.
155
Parks and reserves

National Reserve System Programme

each programme
Number of agreements, plans and management 34 management plans

Indigenous Protected Areas Programme

(subset of the above results for the National Reserve System Programme)

each programme
Number of agreements, plans and management 3 management plans

Both programmes

Accurate and timely approval, payment and 100% of payments made in accordance with terms
acquittal of grants in accordance with legislation and conditions of financial agreements
and guidelines
Information and education products distributed to 29 public submissions received on National Reserve
stakeholders (measured by web site hits, information System future directions statement
Papers on the directions statement and international
protected area agenda presented at a Partnership
for Conservation Roundtable in May 2005
Indigenous protected areas newsletters distributed
High level of community interest indicated by
frequent enquiries in response to the web site
parks-related part of the department’s web site

Parks and reserves
Annual reports of the Director of National Parks at
www.deh.gov.au/parks/publications.
Legislation
Resources
$’000 $’000
Sub-output: Protected areas(2) 42 885 42 890

Sub-output: National Reserve System 327 957
Total (=Output 1.9: Parks and Reserves) 43 212 43 847
Administered items
Acquisition of leases and legal costs 9 850 9 850

(1)
(2)
Prices and expenses include a corporate sevices charge, provided as resources free of charge to the Director of
National Parks calculated under a service level agreement on a full cost recovery basis.
157
Cross-cutting environmental work
The Department of the Environment and Heritage provides other services that
contribute to all of the outputs under outcome 1.
Main responsibilities relevant to this work
Natural Resource
• Administration of the Natural Heritage Trust Management
Programmes Division
• State of the Environment reporting

Policy Coordination
• Economic advice on environmental issues
and Environment
• International activities coordination
Protection Division
• Voluntary environment and heritage organisations
• Environmental Resources Information

Corporate Strategies
Network (ERIN)
Division
• Environmental education
Administration of the Natural Heritage Trust

(Purchased output)
The $3 billion Natural Heritage Trust was established by the Australian Government
in 1997 to help restore and conserve Australia’s environment and natural resources.
The Natural Heritage Trust invests in activities that will conserve, repair and
replenish Australia’s natural capital infrastructure. Activities are undertaken at
national, regional and local scales:
• Actions at the national scale attract the second largest component of Natural
Heritage Trust investment (41 per cent in 2004–05). At this scale the Natural
Heritage Trust supports government projects that will have a national or broad

scale outcome, as opposed to a regional or local outcome, including projects
carried out by state and territory governments. These projects are the principal
source of funds for some departmental activities. Project funding includes some
funding to cover administrative costs including salaries.
• Actions at the regional scale attract the largest component of Natural Heritage
Trust investment (52 per cent in 2004–05). At this scale local communities in 56
regions across Australia are developing regional plans and investment strategies
that identify priorities for funding under both the Natural Heritage Trust and the
National Action Plan for Salinity and Water Quality. Federal, state and territory
governments are working together to fund these plans. As at 30 June 2005
Australian Government ministers had accredited 52 integrated natural resource
management plans, and had agreed to 48 investment strategies as the basis for
government investment.
• Actions at the local scale attract the third component of Natural Heritage Trust
investment (7 per cent in 2004–05). At this scale community groups can address
local environmental problems through grants of up to $50 000 (GST inclusive)
under the Australian Government Envirofund.
Investments are also categorised according to environmental outcome as part
of the Bushcare (39 per cent in 2004–05), Coastcare (19 per cent in 2004–05),
Landcare (25 per cent in 2004–05) and Rivercare (17 per cent in 2004–05) themes
of the Natural Heritage Trust (see pages 75, 136 and 145).
A board made up of the Minister for the Environment and Heritage and the Minister
for Agriculture, Fisheries and Forestry administers the Natural Heritage Trust.
During the year management of the Natural Heritage Trust was carried out in
accordance with the requirements of the Natural Heritage Trust of Australia Act 1997
and the ministerial board.
The Department of the Environment and Heritage receives the annual
appropriation for the Natural Heritage Trust. The department and the Department
of Agriculture, Fisheries and Forestry have a cross-portfolio arrangement for the
administration of the Natural Heritage Trust and the Natural Action Plan for Salinity
and Water Quality (see page 146). The arrangement enables both departments
to deliver the Natural Heritage Trust through a joint Australian Government
Regional Natural Resource Management Team, and includes a purchaser-provider
arrangement for the Natural Heritage Trust. During the year the Department of the
Environment and Heritage provided $7.6 million to the Department of Agriculture,
Fisheries and Forestry under the purchaser-provider arrangement.
The outcomes of Natural Heritage Trust expenditure are reported in the Natural
Heritage Trust’s annual reports (see www.nht.gov.au/publications/#annual-reports)
and the Regional Programmes Report
(see www.nrm.gov.au/publications/regional-report).
159

Bilateral agreements signed with each state and (Signed with all states and territories in previous
territory financial years)
Bilateral agreements signed with the states and (All agreements reflect agreed priorities and delivery
territories reflect agreed priorities and delivery arrangements)
arrangements for the Natural Heritage Trust
Number of investment strategies that are prepared, 25 strategies approved (52 strategies approved to
evaluated and for which funding is agreed and date)
specified in partnership agreements
Investments are approved in accordance with The Minister for the Environment and Heritage and
agreed guidelines the Minister for Agriculture, Fisheries and Forestry
approved investment proposals that contributed
to the Natural Heritage Trust’s objectives and were
consistent with the Natural Heritage Trust’s priority
areas of activity
All investments approved by ministers in 2004–05 Funding was provided under financial agreements
are provided with funding, in accordance with that reflect accountability, reporting and acquittal
Natural Heritage Trust accountability and acquittal procedures
procedures, to meet Natural Heritage Trust
All approved investments contributed to Natural
objectives
Heritage Trust objectives
Integrated natural resource management regional 23 regional plans accredited (52 regional plans
plans meet agreed accreditation criteria accredited to date)
Number of individuals or community groups 1 394 projects (worth $19.7 million) approved,
supported through Australian Government approximately equal to number of individuals and
Envirofund grants community groups supported
Number of on-ground actions by type funded by the See Natural Heritage Trust annual report at
Natural Heritage Trust www.nht.gov.au/publications/#annual-reports
A monitoring and evaluation strategy is in place Strategy in place at each level of the framework
at each level of the Natural Heritage Trust delivery
Implementation strategies agreed with 6 states and
framework
territories

Environmental information
Data collated by the department’s State of the Environment team is used to inform
policy advice and to monitor progress on environmental protection.
2006 State of the Environment report

The Environment Protection and Biodiversity Conservation Act 1999 requires that
a report on the State of the Environment is released every five years. The report
assesses the Australian environment under eight themes (atmosphere, coasts
and oceans, inland waters, biodiversity, human settlements, natural and cultural
heritage, land and the Australian Antarctic Territory). The next report is due in 2006.
The Minister for the Environment and Heritage appointed an independent State of
the Environment Committee in early 2004. During 2004–05 the committee decided
on the scope of the 2006 report, developed frameworks for the themes, and chose
the environmental indicators to use. Work on gathering data and developing a
data reporting system is proceeding. The department has developed a number
of information products based on the National Carbon Accounting System that
are a first for national State of the Environment reporting. The department let
contracts for preparing commentaries on each of the themes, a number of cross-
cutting commentaries and short reports on some current and emerging issues. The
committee will prepare the State of the Environment report over the next financial
year.
Environmental Resources Information Network (ERIN)

The department’s Environmental Resources Information Network continued
to develop information products for use by the department, other government
agencies and the public. For example a new online Species Profile and Threats
database provides information on threatened plants, animals and ecological
communities to help users make informed decisions about activities that come
under the Environment Protection and Biodiversity Conservation Act 1999
(see www.deh.gov.au/sprat).
Various online mapping applications were developed during the year. Anyone
accessing the web site can now produce maps showing species richness,
endemism and taxonomic distinctiveness. This application was developed through
a Global Biodiversity Information Facility demonstration project
(see www.deh.gov.au/biodiversity/digir).
The National Vegetation Information System was updated in close collaboration
with states and territories. The Environmental Resources Information Network
also produced spatial analyses to inform the department’s input to the Tasmanian
Community Forest Agreement (see page 143).
161
International activities coordination

The department represents Australia’s interests on environment, heritage and
sustainable development issues at regional and international forums, including:
• the Commission on Sustainable Development
• the Organisation for Economic Cooperation and Development
• the United Nations Environment Programme
• the United Nations Economic and Social Commission for Asia and the Pacific
• bilateral engagement with countries in the Asia–Pacific region
• trade negotiations held under the auspices of the World Trade Organization
• international environment conventions.
This work contributes to the international pursuit of sustainable development by
drawing on Australia’s strategies and experiences to inform policy decisions. The
department provides briefings to ministers and departmental officials who attend
these meetings. Some of the details appear in other chapters of this annual report—
see especially page 16 (climate change), page 70 (marine conservation), page 96
(Asia–Pacific heritage) and pages 115–117 (chemicals).
In addition the Australian Antarctic Division is an active participant in the
international Antarctic Treaty System—see page 171.
Boxing Day tsunami, Indian Ocean

Agencies in the Australian Government’s environment and heritage portfolio were
involved in the government’s assistance to Indian Ocean countries in the aftermath
of the 26 December 2004 tsunami. The Great Barrier Reef Marine Park Authority
provided coral reef assistance to the Maldives, Thailand and the Seychelles. The
Bureau of Meteorology is involved in establishing an early warning system for
future tsunamis in the Indian Ocean.
Commission on Sustainable Development

The United Nations Commission on Sustainable Development is a multilateral
forum that promotes dialogue on sustainable development and builds partnerships
between governments and stakeholders. The 13th session of the commission
was held from 11–22 April 2005. The three themes under discussion were water,
sanitation and human settlements. The Minister for the Environment and Heritage
participated in the High Level Segment. His representations focused on the need
for improved national governance and for economic growth to foster sustainable
development. The meeting gave impetus to implementation of the Johannesburg
Plan of Implementation on the three main themes, and on key cross-cutting themes
such as gender and education.

Organisation for Economic Cooperation and Development
The department represented Australia at meetings of the Environment Policy
Committee of the Organisation for Economic Cooperation and Development on
9–10 November 2004 and 13–15 April 2005. The committee continued to direct
studies on a wide range of issues linking economic and environmental policy
formulation. It also initiated work on the costs of inaction on environmental
problems, and effective partnerships for preserving and enhancing the
environment. The new work was in response to priorities set by environment
ministers of member countries when they met in April 2004.
The department began preparations for Australia’s second environment
performance review for the Organisation for Economic Cooperation and
Development. The review is scheduled to finish in December 2006. The review
will engage federal, state and territory governments and other stakeholders. The
findings of the review will be a useful input to future environmental policy making.
United Nations Environment Programme

The department represented Australia at the meeting of the Governing Council of
the United Nations Environment Programme held from 21–25 February 2005 in
Nairobi. Major themes were international chemicals management, international
environmental governance, water policy and strategy, and small-island developing
states. Final decisions of the meeting included the development of a strategic
approach to international chemicals management and strengthening activities
related to small-island developing states.
See also: Strategic international approach to chemicals, page 115.
United Nations Economic and Social Commission for Asia and the Pacific
The United Nations Economic and Social Commission for Asia and the Pacific is the
largest of the United Nations’ Regional Commissions. The department represented
Australia at the 5th Ministerial Conference on Environment and Development
in Seoul from 24–29 March 2005. The theme for the meeting was ‘Achieving
Environmentally Sustainable Economic Growth (Green Growth) in Asia and the
Pacific’. The department played a key role in negotiating the final outcomes,
which set a positive agenda for the region in taking forward agreed principles
on sustainable development. A work plan for environment and development
was set for the next five years outlining mechanisms to shift from unsustainable
development patterns to environmentally sustainable economic growth.
Bilateral activities
Papua New Guinea: The department continued to work with Papua New
Guinea’s Department of Environment and Conservation. The department
supported a National Capacity Self Assessment that will help Papua New Guinea
163
meet its international environment obligations and improve environmental and

natural resource management. The department also worked with Papua New
Guinean officials to develop whole-of-government policy coordination processes
for forestry issues.
Indonesia: Engagement with Indonesia covered a wide variety of issues, reflecting
the breadth of the bilateral relationship. A successful meeting of the Joint Working
Group on Marine Affairs and Fisheries on 16 March 2005 progressed issues to do
with illegal fishing and management of the fishing area near Ashmore Reef. Other
areas for bilateral cooperation included joint polar research activities, migratory
marine species and waterbirds, management of world heritage areas, and
meteorological data exchange.
Japan: Discussions at international meetings and in Australia covered a range of
issues including whaling, migratory waterbird conservation and other partnerships
on sustainable development, joint polar research activities, environmental
education, climate change, and meteorological collaboration.
See also: international whaling negotiations, page 177.
New Zealand: Discussions covered marine mammal protection, waste
management, and engagement with the Pacific. The department participated in
the environment performance review of New Zealand for the Organisation for
Economic Cooperation and Development.
Pacific islands: Engagement with the South Pacific Regional Environment
Programme continued through Australia’s involvement in the 15th annual meeting
of officials and 5th ministerial meeting from 13–17 September 2004. The department
continued to assist with wetlands conservation, chemicals and waste management,
climate variability assessment, and implementation of international conventions
such as the Montreal Protocol on Substances that Deplete the Ozone Layer and
the Convention on International Trade in Endangered Species of Wild Fauna
and Flora. This included completing the first year of a two-year United Nations
Development Programme project to help Pacific island countries (including Papua
New Guinea—see above) implement their obligations under major international
environment conventions. The department is working with countries to improve
their capacity to implement international environmental obligations, drawing on
Australia’s experience in meeting these obligations.
Trade and the environment

The department continued its partnership with the Department of Foreign Affairs
and Trade on trade and environment issues. This partnership covered:
• multilateral negotiations in the World Trade Organization and the Organisation
for Economic Cooperation and Development
• bilateral negotiations on preferential trade agreements that commenced in 2005.

The department helped to develop Australia’s positions, especially for the World
Trade Organization negotiations on the relationship between existing trade rules
and trade obligations set out in multilateral environmental agreements (these
negotiations implement paragraphs 31 and 32 of the Doha Declaration, available
via www.wto.org).
Millennium Ecosystem Assessment

The Millennium Ecosystem Assessment was an international programme designed
to synthesise scientific information about the consequences of ecosystem
change. In part the programme aimed to meet assessment needs of international
conventions on the environment. The programme was completed in March 2005,
producing 15 reports in total (see www.milleniumassessment.org). The department
contributed to the programme by providing data and taking part in an extensive
peer review process of draft reports.
Environmental economics advice

The department supports environmental policy decision-making with economic
analysis. It also works to ensure that economic policies take environmental
considerations into account.
During the year this work focused on the scope for cost recovery on environmental
services, economic analyses of native vegetation protection policies, regional
marine planning, heritage protection and fisheries structural adjustment.
The department also continued to participate in the National Market Based
Instruments Pilot Programme under the National Action Plan for Salinity and Water
Quality. Under the programme federal, state and territory governments have
provided $5 million for 11 projects to investigate market-based approaches to natural
resource and environmental management. The projects are nearing completion.
The department contributed to the report Market-based Tools for Environmental
Management—Proceedings of the 6th Annual AARES National Symposium 2003.
Support for environmental education

The department’s goal in its environmental education activities is to develop the
skills, knowledge and values that the Australian community needs to protect the
environment.
National Action Plan for Environmental Education

The department is working with the Australian Government’s advisory body
on environmental education, the National Environmental Education Council, to
implement the National Action Plan for Environmental Education. During the year
the department continued to support the plan’s major initiatives including:
165
• the National Environmental Education Council and its working groups

• the National Environmental Education Network
• research through the Australian Research Institute in Education for Sustainability
(next page)
• greater coordination and resourcing of environmental education.
Implementing the national action plan through these and other mechanisms has
seen a continued improvement in the effectiveness of environmental education
across Australia. Significant achievements include the approval of the first National
Environmental Education Statement for Australian Schools by all education
ministers, the extension of the Australian Sustainable Schools Initiative nationally,
and the completion of a number of environmental education research projects.
Work was also undertaken on the development of
an Australian Government response to the United
Nations Decade of Education for Sustainable
Development.
Sustainable Schools Initiative

The Australian Sustainable Schools Initiative
involves whole school communities in the
sustainable management of their schools,
including better management of resources and
school grounds. The initiative was expanded
during the year to include all states and territories
except Tasmania. The initiative continued to
Youth forum at Dorroughby achieve reductions in the use of energy, water
Photo: courtesy of the North East Waste and waste as well as supporting quality teaching
Forum (NEWF)
and educational outcomes (left).
In September 2004 students from
14 high schools in northern New
South Wales attended a regional Environmental education research
youth forum at Dorroughby
Environmental Education Centre, Under the national component of the Natural
near Lismore. Supported by the Heritage Trust the department is providing
Sustainable Schools Initiative, the
forum was a joint initiative of the $1.8 million over two years (2004–2006) to
North East Waste Forum (on behalf the Australian Research Institute in Education
of its member councils) and the
Government of New SouthWales for Sustainability at Macquarie University for
(Department of Environment and applied environmental education research.
Conservation and Department
The research institute is carrying out projects
of Education and Training). The
forum brought students and teachers aligned with Australian Government priorities for
together to learn how students can environmental education.
actively participate in environmental
management in schools.

The research programme is achieving significant outcomes particularly in work
being done with Australia’s leading business schools and a number of prominent
Australian companies, where the research approach is aimed at embedding
sustainability in the activities of the organisations involved.
Support for environment and heritage organisations

Taxation concessions
The Register of Environmental Organisations is a list of approved environmental
organisations to which donations of money or property for the conservation of the
natural environment are tax-deductible. During 2003–04, the last year for which
statistics are available, the public donated more than $73 million to environmental
tax-deductible organisations. These funds are used to protect and enhance the
natural environment. There is some suggestion that the recent rapid growth in
donations may have slowed or even reversed during 2004–05 as a result of the
massive public response to fund-raising appeals following the 26 December
2004 tsunami. A total of 84 draft applications were processed for entry to the
register during 2004–05; 34 organisations were entered on the register and seven
organisations were removed.
Grants to Voluntary Environment and Heritage Organisations

The Grants to Voluntary Environment and Heritage Organisations programme
assists community-based environment and heritage groups with the administrative
costs of their activities. This year the programme was opened to small, local-level
groups that are conducting on-the-ground environment and heritage activities,
with 128 organisations meeting the revised eligibility criteria. These organisations
were recommended for a total of $759 600 in grant funding for 2004–05. For the
first time, multi-year grants were approved by the minister, totalling $354 000 per
annum for 28 voluntary organisations over 2005–06 and 2006–07.
167

Antarctica—Outcome 2
Outcome 2: Australia’s interests in

Antarctica are advanced.
Australia’s Antarctic interests
The Department of the Environment and Heritage carries out Australia’s Antarctic
and Southern Ocean programmes, including research.
Main responsibilities relevant to this outcome
Output 2.1: Influence in Antarctic Treaty System

Output 2.2: Protecting the Antarctic environment
Protecting the Southern Ocean
International whaling negotiations Australian Antarctic
Output 2.3: Understanding global climate system Division
Output 2.4: Undertake scientific work of practical,
economic or national significance
Australian Antarctic Programme
Objectives
• To maintain the Antarctic Treaty System, to enhance Australia’s influence in it
and enhance international protection for whales and seabirds
• To protect the environment of Antarctica, the Southern Ocean and the Territory
of Heard Island and McDonald Islands including its marine living resources
• To improve understanding of Antarctica’s role in the global climate system
• To support practical and significant Antarctic scientific research

Antarctica
Main results
• Australia and like-minded countries blocked Japan’s proposed management
scheme for commercial whaling, and a majority of International Whaling
Commission members supported Australia’s resolution calling on Japan to
withdraw its proposal to extend scientific whaling
• An international regulatory approach to assigning liability for
environmental emergencies in Antarctica was agreed
• Australia was instrumental in getting the Commission for the
Conservation of Antarctic Marine Living Resources to adopt a Centralised
Vessel Monitoring System to help combat illegal fishing
• Research demonstrated that the Antarctic part of the ‘ocean conveyer
belt’ is able to change over a period as short as 10 years—analyses are
under way to determine whether the changes are more likely to be due
to a long-term natural climate cycle or to climate change
• Australia established an east Antarctic air link—the first stage of
providing essential transport services—and the Australian Government
allocated additional funding for the second stage
Antarctic Treaty system

Australia is a key supporter of the Antarctic Treaty system—the accepted
international legal system for managing Antarctica. The Antarctic Treaty system has
now grown into a wide-ranging regime for managing Antarctica, with a particular
emphasis on environmental protection. It also provides for scientific and logistic
cooperation. Because of the system’s remarkable effectiveness the Australian
Government considers that support for the Antarctic Treaty system is the best way
to advance Australia’s policy interests in Antarctica.
In 1959 Australia was one of the 12 original parties that signed the Antarctic Treaty.
From the outset the Australian Government helped to develop critical conservation
agreements under the treaty. These include the 1964 Agreed Measures for the
Conservation of Antarctic Fauna and Flora, the 1972 Convention for the Conservation
of Antarctic Seals, the 1980 Convention on the Conservation of Antarctic Marine
Living Resources and the 1991 Protocol on Environmental Protection.
The department’s Australian Antarctic Division represents Australia’s interests at
Antarctic Treaty meetings. The most significant forums are the Antarctic Treaty
Consultative Meeting, the annual meeting of the Committee for Environmental
Protection and meetings under the Convention for the Conservation of Antarctic
Marine Living Resources.
171
Antarctica
For the past three years the chair of the Committee for Environmental Protection
has been the director of the Australian Antarctic Division. This committee is
responsible for developing the regulatory framework established by the Protocol

on Environmental Protection.
New rules on environmental liability

The 28th Antarctic Treaty Consultative Meeting was held in Stockholm from
6–17 June 2005 in conjunction with the annual meeting of the Committee for
Environmental Protection.
An important outcome of the Stockholm meetings was the adoption of a new
annex to the Protocol on Environmental Protection. This was the most substantial
addition to the Antarctic Treaty since the protocol itself was added in 1991.
The new annex to the protocol—the sixth—deals with liability arising from
environmental emergencies, an issue with many legal complexities. Once in force
the annex will require anyone who causes an environmental accident in Antarctica
to take action to clean up the pollution and prevent further environmental damage.
Further, if someone else has to clean up the damage, they can claim compensation
from the polluter.
The adoption of the annex concludes more than a decade of negotiations.
The Australian Antarctic Division, on behalf of the government, has pushed
hard throughout negotiations for effective rules on liability that will enhance
environmental protection.
The annex is a pragmatic first step towards elaborating a full set of rules and
procedures on liability for any form of environmental damage. When it adopted
the annex the Antarctic Treaty Consultative Meeting foreshadowed ‘future steps’
towards a more comprehensive liability regime.
Improvements to tourism management

While Antarctic tourism is a relatively small component of the industry worldwide,
the number and diversity of operations is increasing. Each year more people visit
Antarctica. Tourist numbers have doubled over the past decade and the Australian
Government is concerned about the possible environmental impacts.
At the June 2005 Stockholm Antarctic Treaty meetings the Australian Antarctic
Division successfully promoted guidelines for protecting sites subject to heavy
concentrations of visitors in the sensitive wildlife breeding season. It was agreed
to continue work on the Australian Antarctic Division’s previous proposals for
accrediting tour operators.

Antarctica
Environmental inspections in Antarctica
The Australian Antarctic Division carried out inspections of foreign activities
in Antarctica under the Antarctic Treaty and the Protocol on Environmental
Protection.
In January 2005 the division organised an inspection of New Zealand and United
States activities on Ross Island. This was the first inspection of Scott Base and
McMurdo Station (the largest station in Antarctica) since the protocol entered into
force. The division submitted a positive report of the inspection to the Stockholm
Antarctic Treaty Consultative Meeting.
In February and March 2005 an officer from the division took part in an inspection
on the Antarctic Peninsula that was undertaken with the United Kingdom. The
inspection took in some 20 sites and a tourist vessel. The subsequent report
to the Antarctic Treaty Consultative Meeting noted problems with fuel storage,
environmental monitoring, and the establishment, maintenance and removal of
research stations. The consultative meeting adopted a resolution calling on parties
to fix or replace problematic bulk fuel facilities and referred the fuel storage issue
to the Council of Managers of National Antarctic Programmes for consideration
at the council’s July 2005 meeting. The environmental monitoring and research
station issues were referred to the Committee for Environmental Protection.
Antarctic Treaty secretariat

The new secretariat for the Antarctic Treaty, based at Buenos Aires, Argentina,
began operating on 1 September 2004, providing support to the Antarctic Treaty
Consultative Meeting for the first time at Stockholm in June 2005. The meeting was
a convincing demonstration of the importance of having permanent institutional
support and streamlining the operation of the Antarctic Treaty system, outcomes
for which Australia campaigned for many years. The Australian Antarctic Division
helped to establish operating procedures that will ensure the secretariat is cost-
effective and efficient.
Antarctic continental shelf

The Australian Antarctic Territory covers some 42 per cent of the Antarctic
continent. Like other territorial claims in Antarctica the Australian Antarctic
Territory is not universally recognised. The Antarctic Treaty addresses differences
of view over the validity of Antarctic claims.
173
Antarctica
On 15 November 2004 the Australian Government submitted Australia’s data to

define the outer limit of its continental shelf to the United Nations Commission on
the Limits of the Continental Shelf. The submission included areas adjacent to the
Australian Antarctic Territory. The Australian Antarctic Division worked with other
departments and agencies to promote an approach that would protect Australia’s
territorial interests without upsetting the balance between parties to the Antarctic
Treaty on the differing views relating to these issues. This approach was welcomed
by other parties to the Antarctic Treaty and accepted by the Commission on the
Limits for the Continental Shelf.
Antarctic cooperation agreements

The Australian Antarctic Division helps the government develop bilateral
cooperative agreements with other countries interested in Antarctica.
New Zealand: On 27 May 2005 the Australian Antarctic Division and Antarctica
New Zealand signed a letter of understanding to facilitate closer cooperation
in science, logistics and environmental protection measures. This agreement
strengthened the Statement of Commitment by Australia and New Zealand for
Cooperation on Antarctic Matters, which was signed by the Australian and New
Zealand environment ministers in January 1999.
Romania: On 15 June 2005 the Australian Antarctic Division signed a cooperation
agreement with Romania which, among other things, will allow Romania to use
Australia’s Law Base (a field base in the Larsemann Hills) for scientific research.
Indonesia: On 18 March 2005 the Australian Antarctic Division and the Indonesian
Agency for Marine and Fisheries Research signed a cooperation agreement.
Although Indonesia is not party to the Antarctic Treaty the agreement affirms
Australia’s commitment to cooperation as a basic principle for activities in Antarctica.
Protecting the Southern Ocean

The Southern Ocean has abundant wildlife but fishing and whaling are pressure
points. Since 2002 the Australian Government has pushed for improvements
to fisheries management in the Southern Ocean under the Convention for the
Conservation of Antarctic Marine Living Resources.
Under the convention the 24-member international Commission for the
Conservation of Antarctic Marine Living Resources (often referred to as CCAMLR)
is responsible for fisheries in much of the Southern Ocean. Australia is a founding
member of the commission. The director of the Australian Antarctic Division leads
Australian delegations to the commission, which meets annually.

Antarctica
Illegal, unregulated and unreported fishing could deplete stocks of krill, icefish or
Patagonian toothfish, and dramatically alter the ecosystem. Patagonian toothfish in
particular fetches high prices on world markets.
In recent years highly organised illegal, unregulated and unreported fishing for
toothfish in the Southern Ocean has heavily depleted several stocks. Most fishers
use longlines and make no attempt to avoid seabird bycatch. Such fishing is killing
tens of thousands of albatrosses and petrels each year, and has brought some
seabird populations to the brink of extinction.
The Australian Antarctic Division works with other departments and agencies to
develop Australia’s response to illegal, unregulated and unreported fishing and
provides support to the Australian Government’s armed patrols in the Southern
Ocean. Partly as a result of the division’s efforts, Australia has a strong record
of action against illegal fishing in the Southern Ocean, particularly in Australian
waters off the Territory of Heard Island and McDonald Islands.
Monitoring fishing
At its annual meeting from 25 October–5 November 2004 the Commission for the
Conservation of Antarctic Marine Living Resources agreed to several measures to
combat illegal, unregulated and unreported fishing, including:
• the introduction of a satellite-based, centralised vessel monitoring system to
track the movements of fishing vessels licensed by the commission’s member
countries
• improvements to the commission’s catch documentation scheme for toothfish.
The vessel monitoring system is a significant outcome for Australia and other
countries committed to eradicating illegal, unregulated and unreported fishing.
The system’s ability to check vessel positions remotely makes it more difficult for
fishers to falsely report their positions, a major problem with previous systems.
The Australian Antarctic Division helped to secure the commission’s agreement
to establish the vessel monitoring system. The division worked closely with the
Australian Fisheries Management Authority and other Australian agencies in
developing the system.
The Australian Antarctic Division is working through the commission to inform
countries that are not parties to the Convention on the Conservation of Antarctic
Marine Living Resources of the problems caused by illegal, unregulated and
unreported fishing. The aims are to encourage those other countries to properly
control their flag vessels, to deny port access and related support to the vessels
engaged in such fishing, and to deny market access for their illegal, unregulated
and unreported catches.
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Antarctica
Future of the convention

From 5–8 April 2005 the Australian Antarctic Division co-hosted with Chile a
symposium in Valdivia on the future of the Convention on the Conservation
of Antarctic Marine Living Resources. The symposium, an Australian initiative,
provided a forum for experts from member countries to explore the issues facing
the convention as it celebrates its 25th year and to identify strategic directions for
conserving Antarctic marine living resources.
The symposium’s key suggestions will be considered in future meetings of the
Commission for the Conservation of Antarctic Marine Living Resources. This is
expected to lead to improved environmental outcomes for the Antarctic, including
better management of approved fisheries, and the establishment of marine
protected areas.
Albatrosses and petrels

The Australian Antarctic Division leads Australian participation in the Agreement
on the Conservation of Albatrosses and Petrels. The agreement, which was
developed under the auspices of the Convention on the Conservation of Migratory
Species of Wild Animals, came into force on 1 February 2004.
From 8–12 November 2004 the division hosted the first meeting of the parties to
the agreement in Hobart. The meeting was successful, with parties agreeing to an
equitable scale of contributions and a modest budget, and the establishment of
an advisory committee to promote and guide conservation actions for albatrosses
and petrels. Australia was also successful in its bid to host the secretariat for this
agreement. The Australian Antarctic Division agreed to continue to provide interim
secretariat services.
Under the agreement Australia is supporting projects to reduce the impacts of
longline fishing, tackle emergency situations where a particular species of albatross
or petrel is in rapid decline, and control or eradicate non-native species threatening
breeding colonies.
The Australian Antarctic Division also helped develop a revised Threat Abatement
Plan for the Incidental Catch (or By-catch) of Seabirds During Oceanic Longline
Fishing under the Environment Protection and Biodiversity Conservation Act 1999.
The draft plan was reviewed by the Threatened Species Scientific Committee and
will be released for public comment in 2005–06.

Antarctica
Heard Island and McDonald Islands Marine Reserve
The Australian Antarctic Division manages the Heard Island and McDonald
Islands Marine Reserve on behalf of the Director of National Parks. Management
results for 2004–05, including the release of a draft management plan, are
reported in the annual report of the Director of National Parks
(see www.deh.gov.au/parks/publications).
International whaling negotiations

The International Whaling Commission has maintained a moratorium on
commercial whaling for nearly two decades. The commission has also declared the
Southern Ocean to be a sanctuary from commercial whaling.
Some countries, led by Norway and Japan, are pushing to end the moratorium and
revoke the sanctuary. These countries also continue to kill whales under science
programmes. The commission’s rules allow any member country to issue permits
to its own nationals to kill any number of whales for the purposes of science. The
‘scientific’ whaling loophole allows Japanese fishing companies to kill hundreds of
whales in the Southern Ocean each year.
Australia opposes all commercial and scientific whaling. It is Australian Government
policy to work through the International Whaling Commission to achieve:
• a permanent international ban on commercial whaling
• worldwide protection for all cetaceans.
This policy is based on the grounds that:
• commercial whaling is no longer required to meet essential human needs
• even with modern improvements whale killing methods continue to involve an
unacceptable level of cruelty
• people world-wide are increasingly recognising and benefiting from the non-
consumptive use of whales.
Australia’s opposition to commercial whaling applies equally to so-called
‘scientific’ whaling, which is in practice thinly veiled commercial whaling. Australia
nonetheless recognises the needs of some subsistence cultures for continued
access to whaling and whale products to meet demonstrated traditional, cultural
and dietary needs.
The Australian Antarctic Division is responsible for carrying out the government’s
whale protection policy through relevant international forums, including the
International Whaling Commission.
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Antarctica
Moves to resume commercial whaling

The International Whaling Commission held its 56th annual meeting in Sorrento,
Italy, from 19–22 July 2004. The Australian delegation argued successfully against
moves to reintroduce commercial whaling. Australia also submitted a report by the
International Fund for Animal Welfare which showed the link between increased
whale numbers and tourism revenue.
At the Sorrento meeting the International Whaling Commission set up a working
group to consider the rules under which commercial whaling could be resumed.
These rules are known as a ‘revised management scheme’. Australia does not
support any revised management scheme.
The Australian Antarctic Division participated in two meetings of the Revised
Management Scheme Working Group in order to influence the content of any
proposals by highlighting deficiencies and ensuring that any proposals use best
practice in fisheries management as a starting point. The working group did not
agree on a revised management scheme.
At the 57th annual meeting of the International Whaling Commission (held at Ulsan,
Korea, from 20–24 June 2005) the majority of members rejected Japan’s proposal
for adopting a revised management scheme (30 countries opposed the proposal,
25 countries, led by Japan and Norway, supported it, and two abstained). Had the
proposal succeeded it would have opened the way for a resumption of commercial
whaling.
Japan also failed to gain support for its proposal to down-list the minke whale
under the Convention on International Trade in Endangered Species of Wild Fauna
and Flora. This proposal was submitted to the 13th conference of parties to the
convention in October 2004. Australia helped to ensure that minke whales remain
on the list under which they have the greatest protection.
Expansion of Japan’s ‘scientific’ whaling programme

On 1 April 2005 Japan announced that it would embark on another scientific
whaling programme (known as JARPA II) in the Southern Ocean. This programme,
commencing in 2005–06, will take up to 935 minke whales, 50 humpback whales
and 50 fin whales each year.
Following the announcement Australia led other pro-conservation members of the
International Whaling Commission to oppose JARPA II. Among other things:
• Australia led two demarches (diplomatic representations) on the Government
of Japan

Antarctica
• the Prime Minister wrote to his Japanese counterpart

• Australia submitted a resolution to the 57th annual meeting of the International
Whaling Commission calling on Japan to withdraw its proposal and to use only
non-lethal research methods.
The commission adopted Australia’s resolution, which was co-sponsored by a
record 25 member countries. However the commission cannot force Japan to desist
from scientific whaling. Australia will continue to seek to have Japan withdraw its
programme.
Sanctuaries and other conservation measures

At the 57th annual meeting of the International Whaling Commission Australia and
other pro-conservation members were successful in retaining the Southern Ocean
Sanctuary, despite calls from the pro-whaling bloc to have the sanctuary abolished.
Australia and New Zealand continued to promote the benefits of a South Pacific
Whale Sanctuary. In 2005 the International Whaling Commission asked its
Conservation Committee to review the merits of this proposal. The committee
received the proposal positively and continues to review it.
The pro-conservation bloc within the International Whaling Commission was
successful in retaining all conservation-related items on the commission’s agenda.
The Australian Antarctic Division will participate in intersessional work to
investigate the impact of ship strikes on whales throughout the world.
Protecting the Antarctic environment

The Antarctic Treaty’s Protocol on Environmental Protection requires Australia and
other signatories to minimise the environmental impacts of activities in Antarctica.
The Australian Antarctic Division implements Australia’s environment protection
programmes and legislation in Antarctica.
Environment protection laws

The Australian Government is scrupulous in minimising the environmental impacts
of Antarctic operations, including cumulative impacts. This includes assessing
possible impacts under the Antarctic Treaty (Environment Protection) Act 1980
and the Environment Protection and Biodiversity Conservation Act 1999. During
the year Australia led intersessional work by the Committee on Environmental
Protection to better address cumulative environmental impacts by refining the
committee’s Environmental Impact Assessment Guidelines.
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Antarctica
Australia has quarantine procedures in place to protect Antarctica and the sub-
Antarctic islands from introduced species. The Australian Antarctic Division seeks
to develop and promulgate these procedures through the Antarctic Treaty system.
Australia presented a working paper on quarantine to the 2005 meeting of the
Committee on Environmental Protection. As a result quarantine will be a major
focus of the committee’s next meeting.
Major outcomes of the work of the committee, including new rules on
environmental liability, are noted on page 172.
Antarctic Approvals Online project

Each year the Australian Antarctic Division receives about 160 research applications
from scientists and another 30 or so applications to conduct other activities, such
as tourism, in Antarctica. The Australian Government has a range of laws and
processes to protect the Antarctic environment and people working in Antarctica.
The Antarctic Approvals Online system ensures that an applicant only has to
provide as much information as is required to undertake their activity, thereby
avoiding duplication.
Over the last three years the Australian Antarctic Division has invested $0.5 million
on the Antarctic Approvals Online project. This web site was finished in 2004–05
and has streamlined the applications process, saving time and costs for applicants
as well as the division.
New protected areas 1

Larsemann Hills oasis: The Larsemann Hills, approximately 100 kilometres south
of Davis, contain one of the four major coastal ice-free areas in Antarctica. At the
June 2005 meeting of the Committee for Environmental Protection the Australian
Antarctic Division worked with other interested countries to finalise a draft
management plan for an Antarctic specially managed area covering the oasis.
Cape Denison site and Mawson’s huts: Australia’s most significant Antarctic
heritage site, Cape Denison, was approved as an ‘Antarctic specially managed area’
in June 2004. Cape Denison contains two specially protected areas for the major
remaining structures of the 1911–1914 Australasian Antarctic Expedition: ‘Mawson’s
huts’ (top right). In January 2005 the huts were also inscribed on the National
Heritage List under the Environment Protection and Biodiversity Conservation
Act 1999. Mawson’s huts rank alongside those of Scott, Amundsen and Shackleton
1
The Madrid Protocol provides for two types of protected areas: Antarctic specially managed areas are protected
from some environmental impacts, while Antarctic specially protected areas enjoy stronger protection. A protected
area is established if the Antarctic Treaty Consultative Meeting accepts a management plan for the area.

Antarctica
as icons of the ‘heroic age’ of Antarctic

exploration. In June 2005 the Australian
Antarctic Division received $0.1 million
from the Prime Minister’s Gifts to the
Nation programme to produce public
information and interpretative material on
the huts.
Environmental management system

The Australian Antarctic Division’s
Mawson’s huts
Photo: G Hoffman
environmental management system
provides a transparent way to identify
and manage the environmentally significant aspects of Antarctic activities. The
Australian Antarctic Division was the first national operator amongst the Antarctic
Treaty parties to have its environmental management system certified to the
international ISO 14001 standard. The system’s certification is due to be renewed
later in 2005. An audit at Mawson and Davis stations during the summer of 2004–05
showed that the system was being implemented effectively and required minimal
adjustment to give full effect to the international standard.
Renewable energy at Mawson

The Australian Antarctic Division has installed
two wind turbines at Mawson station (left). In
suitable wind conditions the turbines contribute
approximately 90 per cent of the station’s
energy needs, so that fuel use in 2004–05 was
approximately 70 per cent of the 2002 levels. The
next stage in this project is to install equipment
to use excess wind energy to generate hydrogen,
planned for the 2005–06 Antarctic summer. The
engineering team from the Australian Antarctic
Division that designed these systems won the
Wind turbine at Mawson station
prestigious President’s Prize at the 2004 Australian
Photo: D Neilson Engineering Excellence Awards.
Clean-up operations
The Australian Antarctic Division has embarked upon an extensive clean-up
campaign to remove 30-year-old waste from disused tip sites at Australia’s
Antarctic stations, and to remediate the effects of fuel spills that have occurred.
Approximately 1 000 tonnes of excavated material remains in a bunded stockpile at
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Antarctica
Thala Valley near Casey station, pending final disposal. The site will be monitored
to ensure contaminants remain contained. A multi-year research project will
establish the likely effects on adjacent marine environments. The results of the
research and of the initial removal and remediation efforts will be shared with
Australia’s Antarctic Treaty partners in a major clean-up workshop to be held in
Hobart in 2006.
The Australian Antarctic Division began planning for the removal of the old
Davis station, which was abandoned in the mid-1990s. The old station is now
structurally unsound, contains asbestos cement sheet, has unstable foundations
and is releasing lead-based paint, insulation and other materials into the
local environment. Approvals are being sought under the Antarctic Treaty
(Environment Protection) Act 1980 and Environment Protection and Biodiversity
Antarctica’s influence on the climate

Antarctica influences the global climate because of its low temperatures,
circumpolar ocean and immense size. Antarctica’s vast ice sheets affect the flow
of heat in the oceans and atmosphere, the shape of the southern ozone hole, and
how much carbon dioxide the oceans absorb.
Climate change is beginning to cause large-scale changes to Antarctica’s ice sheets,
including the collapse of the Larsen B ice shelf in 2002. These changes could affect
major ocean currents and food webs.
The Australian Government has a five-year research plan called the Antarctic
Science Strategy 2004–2009. One of the four priorities is adding to knowledge
about Antarctica’s influence on the climate. The Australian Antarctic Division works
closely with the Antarctic Climate and Ecosystem Cooperative Research Centre and
the Australian Greenhouse Office (see page 24) to carry out this research. Much
of it entails marine research, and the division also works closely with the CSIRO
Wealth from Oceans flagship programme.
Evidence of rapid and widespread changes in the deep Southern Ocean

The Australian Antarctic Division’s chartered research ship Aurora Australis carried
out an eight-week research voyage between December 2004 and February 2005.
The expedition found that the deep waters near Antarctica are cooler and less salty
than they were 10 years ago. The magnitude, rate and widespread distribution of
the changes are a surprise: conventional wisdom assumed that the properties of
the deep ocean were relatively stable and not likely to change much with time.

Antarctica
Water sinking near Antarctica is part of a global pattern of ocean currents known
as the ‘ocean conveyor belt’ that strongly influences global and regional climate by
transporting heat and carbon dioxide. The new measurements demonstrate that the
Antarctic part of the conveyor belt is able to change over a period as short as 10 years.
Analyses are under way to determine whether similar changes are observed in
other areas around Antarctica and whether the changes observed are more likely to
be due to a long-term natural climate cycle or to climate change.
Effects of ozone depletion

The Antarctic ozone hole can enhance the greenhouse effect by killing plankton that
absorbs carbon dioxide. Phytoplankton is the base of the Southern Ocean’s food
web and makes sugars by absorbing carbon dioxide. Damage to the ozone layer is
likely to reduce the capacity of Antarctic waters to act as a sink for carbon dioxide.
The 2004 Antarctic ozone hole was smaller than those of recent years. According
to a preliminary analysis of data from NASA’s Earth Probe satellite, the ozone hole
reached a maximum area (on 21 September 2004) of about 24 million square
kilometres—similar in size to the North American continent. The largest holes on
record occurred in 2000 and 2003 and were about 30 million square kilometres in size.
Effects of climate change on

marine life
From 28 October to 3 November 2004
scientists from the Aurora Australis set
up camp on Antarctic sea ice for five days
to study the effects of climate change
on marine life in the area. Sea ice hosts
microscopic algae that feed krill and
zooplankton. Climate change is reducing
the time that sea ice is present in coastal
Glaciologists taking sea ice cores near the areas, affecting the amount and type of
Auroroa Australis
food available to marine animals. The
Photo: G Dixon
project is part of an ongoing, five-year
study to investigate these changes (above). All analysis of the samples collected
has been completed and data analysis is under way.
Law Dome ice core project

Law Dome, 100 kilometres inland from Casey station, has been a focal point for
Australian glaciological research since the 1960s. Its ice sheet preserves a record
of the climate. In October 2004 scientists retrieved a 120 metre ice core from near
the summit. Preliminary analysis of the material indicates that the record covers
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Antarctica
650 years. It will be used to validate the recent reports of a 20 per cent decline in
sea ice, and to extend this record back over past centuries. Detailed analysis is
proceeding at the Antarctic Climate and Ecosystem Cooperative Research Centre.
Atmospheric electricity project

Australian and Russian scientists deployed equipment to measure the electric
current that flows between the ground and the lower reaches of the ionosphere.
The data will help determine whether changes in the sun over its 11-year cycle
have an effect on the Earth’s weather system by altering the global electrical circuit
and the conditions under which thunderstorms develop. Accurate measurements of
the current could also enable scientists to monitor changes in global thunderstorm
activity as the Earth warms.
Scientists from the Australian Antarctic Division carried out the initial tests inland of
Casey station, where the windy weather prevented them collecting enough data for
a useful study of the global circuit. However Russian scientists deployed upgraded
equipment at Vostok with the assistance of the Australian Antarctic Division. This
equipment remains operational and is collecting scientifically useful data.
Automatic weather stations upgrade

During 2004 the Australian Antarctic Division, in partnership with Tasmanian
company Climetrics Pty Ltd, completed a major redesign of its automatic weather
stations. The redesign was undertaken to add improved technology and to ensure
long-term access to spare parts. The division has been making and installing
automatic weather stations in Antarctica for 20 years, with 19 stations operating
there prior to the recent upgrade. Some are now buried by snow but still sending
data useful to glaciologists, climatologists and meteorologists.
In January 2005 Australia and China cooperated in a project to install the upgraded
automatic weather stations in Antarctica. One of the stations was installed at a new
location around 1 200 kilometres inland from Davis at what is believed to be the
coldest place on Earth—Dome A, the highest point in Antarctica. In addition to
providing essential weather observations the automatic weather stations will help
build a more comprehensive picture of the climate.
See also: understanding of climate change, page 24.
Australian Antarctic Programme

Antarctic science provides direct benefits to Australians—examples include more
reliable weather forecasts, clues to locating mineral deposits in Australia, and new
ways to contain and treat pollutants in cold environments. Support for Antarctic
research reinforces Australia’s influence in the Antarctic Treaty system.

Antarctica
Providing logistic support for researchers as part of Australian National Antarctic

Research Expeditions is one of the main responsibilities of the Australian Antarctic
Division. The division maintains four permanent stations in Antarctica and at
Macquarie Island. Each summer the division deploys around 200 people to these
stations and to field camps. The expeditions are supplied using chartered ships and
aircraft.
The Australian Government’s support for increasing numbers of scientists in
Antarctica has steadily increased the number of peer-reviewed publications (the
best measure of scientific output) since 1999. Each year the government’s Antarctic
science programme supports about 130 projects, leading to 150–200 peer-reviewed
scientific research papers and an additional 200 unrefereed papers.
For more information about specific research projects see
www.aad.gov.au/default.asp?casid=16714.
Antarctic science grants

The Australian Antarctic Division supports the Australian Antarctic Science grants
scheme. Applications for 2004–05 grants were sought nationally in May 2003,
prompting 177 research proposals. Following independent assessment 54 proposals
were awarded grants with a total value of $0.8 million.
Antarctic air link

During the year the department established
an air service to transport personnel and
scientific equipment around the eastern
part of Antarctica. Two ski equipped
turbo prop aircraft (CASA 212-400) linked
stations and field bases up to
500 kilometres from the coast during the
2004–05 summer.
CASA 212 ‘Gadget’ at Mawson The aircraft—named Ginger and Gadget
Photo: D Neilson (left) after dogs belonging to Australian
scientist and polar explorer Sir Douglas
Mawson—have a greater payload and
range than aircraft previously used to support Australia’s Antarctic programme.
Their fuel efficiency allows non-stop flights between all Australian stations.
To establish the intracontinental air service, the Australian Antarctic Division signed
a 12-year contract worth $60 million with Sydney-based Skytraders Pty Ltd in
June 2003. The air service started operating in Antarctica in mid-December 2004
following ski trials of the CASA 212 aircraft in Greenland.
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Antarctica
Based mainly at Davis, the aircraft allowed the Australian Antarctic Division to
transfer personnel between stations and to remote field locations, eliminating the
transfer of personnel by ship between the stations. Both aircraft returned to Hobart
at the end of the season in March 2005.
The next step in this project is to establish a permanent, intercontinental air link
between Australia and Antarctica. Funding of $46.3 million over four years for this
link was announced in the May 2005 Budget. The Australian Antarctic Division
has completed feasibility studies, including runway construction trials, at a cost of
$3.2 million. A 4 000 metre ice runway will be constructed near Casey station over
the next two summers to allow a long-range jet aircraft to land in Antarctica. The
Australian Antarctic Division expects to finalise the aircraft type for the service by
early 2006, with trial flights scheduled to commence in early 2007.
International management meetings

Australian Antarctic Division scientists and managers participate in the international
Council of Managers of National Antarctic Programmes and the Standing
Committee on Antarctic Logistics and Operations. These bodies represent countries
with a national presence in Antarctica. They promote better management through
the sharing of operational experience and innovations.
Concurrent meetings of the Scientific Committee on Antarctic Research and
Council of Managers of National Antarctic Programmes were held in Bremen on
26–30 July 2004, where Australia displayed its new CASA 212 aircraft.
International Polar Year preparations

The International Polar Year will be held over 24 months from March 2007 to
March 2009. It will mark the 50th anniversary of the International Geophysical Year,
which lasted 18 months from July 1957 to December 1958, and helped to stimulate
development of the Antarctic Treaty.
At its October 2004 meeting the Scientific Committee on Antarctic Research, an
international committee under the Antarctic Treaty system, endorsed Australia’s
proposal to coordinate an international Census of Antarctic Marine Life as a major
contribution to the International Polar Year. The Australian Antarctic Division will
host the project manager and is seeking additional funds for coordination from the
Sloan Foundation, which is funding the international Census of Marine Life
(see page 69).

Antarctica
Antarctic Treaty system
Australia’s positions are advanced in the decisions of Secretariat established (September 2004)
the Antarctic Treaty system
Agreement on liability arising from environmental
emergencies adopted (June 2005)
Site-specific guidelines for heavily visited tourist
sites in place (June 2005)
Number of policy proposals and briefings Multiple policy proposals and delegation briefings
completed for and participation in international (for Antarctic Treaty Consultative Meeting, Committee
forums for Environmental Protection, and Council of
Managers of National Antarctic Programmes,
Commission for the Conservation of Antarctic Marine
Living Resources and related meetings)
Provide chair and other support for the Committee Director of Australian Antarctic Division completed
for Environmental Protection first year of his second two-year appointment,
supported by secretariat based in the division
Helped to increase Australian influence within
the Antarctic Treaty and advance Australia’s
environmental objectives
Significantly improved committee’s efficiency and
strategic focus
Widespread praise from other committee members
Influence, by directed research, the decisions of Submitted or co-submitted 11 working papers and
Antarctic Treaty system 6 information papers to guide discussions at the
Antarctic Treaty Consultative Meeting
Australian Antarctic Division researchers developed
new management plans for an Antarctic specially
protected area and an Antarctic specially managed
area, and revised management plans for 3 other
Antarctic specially protected areas. All were adopted
by the Antarctic Treaty Consultative Meeting.
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Antarctica

Antarctic Treaty system continued ...
Report on technical and practical measures to Refinements to impact assessment guidelines

minimise environmental impacts in the Antarctic adopted by Committee for Environmental
region Protection
Paper on quarantine and introduced species
influenced agenda of 2006 meeting of Committee
for Environmental Protection
Continued development of online system for
reporting on state of the Antarctic environment,
including work with France and other countries to
develop indicators and reporting processes
Four management plans for Antarctic specially
protected areas approved by Antarctic Treaty
Consultative Meeting
Effective administration of the Australian Antarctic Public comments supported draft management
Territory and the Territory of Heard Island and plan for the Heard Island and McDonald Islands
McDonald Islands in accordance with Australian Marine Reserve
legislation and international obligations
New web site developed to increase public
awareness of reserve
Number of permits issued or administered under 41 permits (21—Antarctic Treaty (Environment

Antarctic environmental protection legislation Protection) Act 1980, 11—Antarctic Marine Living
Resources Conservation Act 1981, 6—Heard Island
and McDonald Islands Environment Protection and
Management Ordinance, 3—Environment Protection
and Biodiversity Conservation Act 1999)
All new activities subjected to prior environmental 61 assessments—Antarctic Treaty (Environment

impact assessment in accordance with legislation Protection) Act 1980
and relevant management plans
Environment protection
Environmental impact assessments completed for Assessments completed for all relevant activities
all relevant activities in Antarctica under Antarctic Treaty (Environment Protection)
Act 1980 and (where appropriate) Environment
Protection and Biodiversity Conservation Act 1999
Number of environmental impact assessments 61 assessments— Antarctic Treaty (Environment

reviewed or completed Protection) Act 1980
Also reviewed 2 draft comprehensive environmental
evaluations submitted to Antarctic Treaty parties by
Germany and United Kingdom
Australia’s obligations under the Protocol on Obligations met—continued leadership on

Environmental Protection to the Antarctic Treaty quarantine, conservation of flora and fauna, and
are met state of the Antarctic environment reporting

Antarctica
Environment protection continued ...
Number of environmental policy proposals and Multiple policy proposals and briefings (for the
briefings completed for Antarctic Treaty Consultative Committee for Environmental Protection, Antarctic
Meetings and the Committee for Environmental Treaty Consultative Meeting environmental
Protection issues, Council of Managers of National Antarctic
Programmes)
Extent of the collection of scientific data or High—contributions from Antarctic Marine Living
modelling of natural phenomena or development Resources, Human Impacts and Biology programmes
of scientific instrumentation to be used in further included ecosystem modelling of the fish stocks in
scientific research or operational planning the Heard Island region of the Southern Ocean.
Extent to which environmental management High—Antarctic Treaty parties accepted Australia’s

practices in Antarctica are improved as a result of system for reporting on state of the Antarctic
initiatives promulgated by Australian Antarctic environment as a foundation for Antarctic Treaty
Division environmental monitoring and reporting
Support for official inspections of 16 stations of
Antarctic Treaty parties led to further action by
Antarctic Treaty Consultative Meeting to improve
station management
Online discussion forum for Committee for
Environmental Protection is facilitating out-of-
session work
Australia’s recovery plan for albatrosses and
petrels presented as a model to Committee for
Environmental Protection for application to
‘specially protected species’ under Annex II of the
Madrid Protocol
Extent of advice provided to industry, national High—advised Republic of Korea, Japan and Canada
agencies and government on developing legislation to implement Protocol on
Environmental Protection
Convened working group to review procedures for
environmental impact assessment; and submitted a
draft management plan for a new Antarctic specially
protected area for Scullin and Murray Monoliths,
near Mawson station
Successful completion of relevant projects in None completed yet—13 projects are under
accordance with the Antarctic Science Strategy way, first year when projects will be completed is
2004–05 to 2008–09 2005–06
Climate research
Successful completion of relevant projects in 19 projects were completed

accordance with Australia’s Antarctic Science
Programme Strategic Plan 2000–2005
External assessment of the quality of the outputs of Annual assessment completed by Antarctic Science
the research programme Advisory Committee
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Antarctica

Climate research continued ...
Number of research reports, articles and papers 43 scientific papers and popular articles were
prepared and publicly released published on climate related research
Extent to which information, data and research High—2 million individual visitors to Antarctic web
findings of an informative or educational nature are site, generating 50 million hits and viewing
distributed to outside parties (measured by web site > 12 million web pages
hits, printed material distributed, presentations etc)
Publication of the Australian Antarctic Magazine,
which showcases science conducted under the
Australian Antarctic programme
Provision of online access to data and research via
the Australian Antarctic Data Centre
Extent of the collection of scientific data and/ High—35 projects collected data on climate
or modelling of natural phenomena and/or research
development of scientific instrumentation to be used
in further scientific research or operational planning
Other research
Successful completion of relevant projects in 56 projects completed

accordance with Australia’s Antarctic Science
Programme Strategic Plan 2000–2005
External assessment of the quality of the outputs of Annual assessment completed by Antarctic Science
the research programme Advisory Committee
Extent to which fisheries management practices are High—consistent influence on the quality and
improved as a result of initiatives promulgated by success of proposals put to Commission for the
Australian Antarctic Division Conservation of Antarctic Marine Living Resources
Number of research reports, articles and papers 440 publications (including 161 Category 1
prepared and publicly released scientific publications—the most important and
valuable type of publication in the peer-reviewed
international literature)
Extent to which information, data and research > 2 million individual visitors to Antarctic web site,
findings of an informative or educational nature are generating 50 million hits and viewing > 12 million
distributed to outside parties (measured by web site web pages
hits, printed material distributed, presentations etc)
Also 5 Australian Antarctic Arts Fellowships awarded,
which are aimed at promoting awareness of
Antarctica through art and writing
Extent of advice provided to industry, national High—advice provided to Australian public and
agencies and government private sector entities as well as international
bodies on issues such as fisheries management and
practices, climate change and marine science
Extent of the collection of scientific data or High—134 projects, 110 scientists in expeditions in
modelling of natural phenomena or development the 2004–05 season
of scientific instrumentation to be used in further
scientific research or operational planning

Antarctica
Legislation
Australian Antarctic Territory Acceptance Act 1933
Australian Antarctic Territory Act 1954
Antarctic Marine Living Resources Conservation Act 1981
Antarctic Treaty Act 1960
Antarctic Treaty (Environment Protection) Act 1980
Heard Island and McDonald Islands Act 1953
Removal of Prisoners (Territories) Act 1923—insofar as it relates to the Territory of
Heard Island and McDonald Islands and the Australian Antarctic Territory
Resources
$’000 $’000
Output 2.1: Influence in Antarctic Treaty system 13 739 16 598
Output 2.2: Protecting the Antarctic environment 34 431 43 885
Output 2.3: Understanding global climate system 21 381 25 391
Output 2.4: Undertake scientific work of practical, economic or 17 840 20 639

national significance
Total 87 391 106 513

(1)
191
Antarctica

Environmental impacts
This section is presented in accordance with the requirements of section 516A of
the Environment Protection and Biodiversity Conservation Act 1999.
As the lead Australian Government agency for implementing the National Strategy for
Ecologically Sustainable Development (see www.deh.gov.au/esd/national/nsesd),

the department is a strong advocate of environmental accountability and reporting,
including through:
• triple bottom line reporting in accordance with the Global Reporting Initiative
(see www.globalreporting.org)
• the reporting requirements for Australian Government agencies set out in section
516A of the Environment Protection and Biodiversity Conservation Act 1999.
The National Strategy for Ecologically Sustainable Development defines the goal of
ecologically sustainable development as:
development that improves the total quality of life, both now and in the future,
in a way that maintains the ecological processes on which life depends.
Almost all of the activities reported in this annual report contribute either directly
or indirectly to this goal.
How the department applies the principles

The Environment Protection and Biodiversity Conservation Act 1999 lists the
principles of ecologically sustainable development (see box opposite). Almost all
of the department’s activities during 2004–05 either:
• directly applied one or more of the principles of ecologically sustainable
development to solving environmental problems
or
• supported activities that applied the principles to solving environmental
problems.
As required under subsection 516A(6a) of the Environment Protection and
Biodiversity Conservation Act 1999, the following section explains how the
department’s activities during 2004–05 accorded with the principles of ecologically
sustainable development. More details of these activities are contained in other
chapters of this annual report.

Principles of ecologically sustainable development
Short name Principle*
Integration principle Decision-making processes should effectively integrate both long-term and
short-term economic, environmental, social and equitable considerations

Precautionary principle If there are threats of serious or irreversible environmental damage, lack
of full scientific certainty should not be used as a reason for postponing
measures to prevent environmental degradation
Intergenerational principle The present generation should ensure that the health, diversity and
productivity of the environment is maintained or enhanced for the benefit
of future generations
Biodiversity principle The conservation of biological diversity and ecological integrity should be a
fundamental consideration in decision-making
Valuation principle Improved valuation, pricing and incentive mechanisms should be promoted
* These principles are set out in sections 3A and (in the case of the precautionary principle) 391 of the Environment
Protection and Biodiversity Conservation Act 1999. The department administers the Environment Protection and
Biodiversity Conservation Act 1999 and the Natural Heritage Trust of Australia Act 1997, both of which explicitly
recognise these principles.
Integration principle
The department made extensive use of the integration principle to promote better
management of Australia’s natural resources:
Integrated natural resource management: The department continued to
develop and invest in natural resource management plans and other strategies for
integrating management based on the need to maintain ecosystems, including the
regional component of the Natural Heritage Trust and regional marine plans. These
plans integrate both long-term and short-term economic, environmental, social and
equitable considerations.
Integrated reporting: The department continued to promote triple bottom line
accountability, including by publishing its own triple bottom line report.
Precautionary, intergenerational and biodiversity principles

The precautionary, intergenerational and biodiversity principles were central to
the department’s environmental and natural heritage protection activities during
the year, all of which aim to conserve biodiversity and ecological integrity, and to
maintain the health, diversity and productivity of the environment for the benefit of
future generations:
Community and international engagement: The department continued
to advocate the Australian Government’s environmental policies in Australia
and abroad, including through international engagement on climate change,
biodiversity conservation, threatened species protection, migratory wildlife
195
protection, wetlands conservation, world heritage conservation, park management

and the international trade in environmentally hazardous chemicals and wastes.
Community capacity building: The department continued to administer
the Australian Government’s major natural resource management programmes
that have an environmental focus, including the Natural Heritage Trust. These
programmes increase the capacity of Australians to conserve ecosystems.
National response to climate change: The department continued to develop

Australia’s national response to the threat of climate change in the absence of full
scientific certainty. Addressing climate change will help to conserve ecosystems.
Biodiversity conservation laws: The department continued to apply laws for the
conservation of biodiversity, notably the Environment Protection and Biodiversity
Conservation Act 1999, to protect wildlife and places with environmental values,
including heritage-listed places, often in the absence of full scientific certainty.
Environmental impact assessments: The department continued to apply laws
to prevent serious environmental damage, notably the Environment Protection
and Biodiversity Conservation Act 1999, to assess the possible environmental
impacts of proposed actions, often in the absence of full scientific certainty.
Pollution prevention: The department continued to apply laws and other
national measures to prevent environmentally harmful substances from entering
the environment, notably the various national environment protection measures,
the Environment Protection (Sea Dumping) Act 1981, the Hazardous Waste
(Regulation of Exports and Imports) Act 1989, and the Ozone Protection and
Synthetic Greenhouse Gas Management Act 1989.
Whole-of-government policy development: The department continued
to advocate environmental protection in the development of other Australian
Government policies, including major energy and water reforms.
Valuation principle
The department applied the valuation principle to promote conservation and better
management of industrial wastes:
Conservation incentives: The department continued to promote incentives for
protecting wildlife and habitats on private land through covenants. The department
also supported fishing industry adjustment processes that will reduce pressures on
the marine environment.
Waste reduction incentives: The department continued to promote incentives
for more efficient uses of resources, including markets for waste products such as
used lubricating oils.

Contribution of outcomes
As required under subsection 516A(6b) of the Environment Protection and
Biodiversity Conservation Act 1999, the department’s outcomes contribute to
ecologically sustainable development as follows:
Outcome 1: Protecting the environment helps to maintain the ecological processes

on which life depends.
Outcome 2: Australia’s Antarctic interests include a strong focus on protecting
the Antarctic environment, as well as deriving reasonable economic benefits from
Antarctic resources.
Environmental effects of activities

As required under subsections 516A(6c, d and e) of the Environment Protection
and Biodiversity Conservation Act 1999, the following section summarises the
environmental effects of the department’s operations during the year. It covers how
the department is minimising the environmental impacts of its operations, and is
increasing the effectiveness of the measures it takes to minimise its environmental
impacts.
More detailed explanations of the information summarised below will be presented
in the department’s 2004–05 triple bottom line report. During the year the
department extended its triple bottom line reporting to include Antarctic, parks and
Supervising Scientist operations, with the results summarised below.
Other information about the environmental effects of the department’s work to
implement the Australian Government’s policies and programmes appears under
the ‘Environment’ and ‘Antarctica’ chapters of this report.
John Gorton Building

• The department’s environmental management system for the building was
re-certified to ISO14001.
• Upgraded electricity metering was installed.
• Total tenant light and power consumption was up by 16.5 per cent due to
increased staff numbers.
• Electricity consumption per person per year fell by 5 per cent to 5 233 megajoules.
The department is on target to achieve 4 500 megajoules per person per year by
2005–06.
• The department continued purchasing 100 per cent accredited greenpower for
the John Gorton Building.
197
• A water audit identified the John Gorton

Building potable mains water use was
0.79 kilolitres per metre squared per year,
which is 30 per cent better than the Australian
office building average benchmark of 1.125
kilolitres per metre squared per year.
• A waste audit identified opportunities to reduce

waste to landfill by more than 70 per cent
through full use of current recycling facilities.
• Paper consumption increased by two sheets per
person per day from 2003–04 to 2004–05 (left).
• Greenhouse gas emissions were 376 kilograms
EcoNet officers auditing per person per year, down from 409 kilograms
paper usage in the John
per person in 2003–04.
Gorton Building. Employees
can volunteer to join the • The department produced estimates of indirect
department’s EcoNet, a network greenhouse emissions from staff air travel
that promotes the department’s
environmental management and taxi use for the first time (approximately
systems in the workplace. 14 times the total of the department’s direct
Photo: E Macdonald emissions). The methodology for aviation
emissions was developed as part of Greenhouse
Challenge Plus (see page 20).
Australian Antarctic Division

• The division maintained certification of its ISO14001 environmental
management system.
• Significant environmental risks were reviewed and legal compliance was
audited.
• The Kingston offices consumed 471 megajoules of electricity per metre
squared per year (751 megajoules at the stations). Mawson station sourced
approximately 30 per cent of its electricity from wind power.
• The offices at Kingston, Tasmania, consumed 6 216 kilolitres of water, and
the Antarctic stations consumed 5 308 kilolitres of water. Water meters were
installed at each station and at Kingston.
• The division reused or recycled 26 per cent of all waste.
• Staff at headquarters used 30 sheets of paper per person per day.
• The department’s Antarctic operations produced 1 483 766 tonnes of
greenhouse gases (excluding waste).


• Plans of management for individual protected areas include environmental
management goals.
• The Australian National Botanic Gardens introduced a building management
system and Kakadu National Park installed electricity metering.

• Several parks have water metering: Booderee National Park consumed
11 020 kilolitres of water, Uluru–Kata Tjuta National Park consumed
71 000 kilolitres, and the Australian National Botanic Gardens consumed
146 508 kilolitres.
• At Booderee National Park, where statistics are available, 1 160 cubic metres of
waste was recycled.
• Available data suggests staff used 13 sheets of paper per person per day.
• Total greenhouse gas emissions from transport energy use were 1 495 tonnes.
• The department managed a total of 2 131 345 hectares of protected areas and
continued to prepare species inventories for the six terrestrial parks.
Supervising Scientist Division

• The department developed a draft environmental management system for
the division’s Darwin offices.
• Electricity usage was reduced by 4.59 per cent from 2003–04 through staff
awareness raising, equipment shut down and lighting switch-off initiatives.
• Transport use of fossil fuels was reduced by 20 per cent and distance travelled
by vehicles was reduced by 25 per cent, through video conferencing and a
reduction in fleet size.
• The Darwin offices consumed 724 kilolitres of water or 65.5 litres per person
per day, including for use in aquaculture operations.
• A worm farm was established at the Darwin offices to recycle organic waste
and provide live feed for breeding populations of the purple spotted gudgeon.
• The Darwin offices consumed 27.6 sheets of paper per person per day.
• Greenhouse gas emissions totalled 1 202.5 tonnes.
• The division continued a wide range of biodiversity fieldwork activities,
including testing mining impacts on billabong species.
199
Stakeholder relations
The Department of the Environment and Heritage focuses on providing a high
standard of service to the Minister for the Environment and Heritage and the
Parliamentary Secretary to the Minister for the Environment and Heritage.
The department interacts with the broader community mainly as a provider of

specialised grants programmes, as a regulator, and through formal consultation on
government initiatives.
Ministerial and parliamentary services

The department provides a range of advisory and support services for the
Minister for the Environment and Heritage and the Parliamentary Secretary to
the Minister for the Environment and Heritage. These services include briefings,
correspondence, web site maintenance and office support services. The range of
subject matter covered by briefings and correspondence includes all aspects of
the portfolio’s responsibilities, responses to parliamentary questions, and relevant
business being considered by the Cabinet.

Policy advising, ministerial and parliamentary
Minister is satisfied with the timeliness and quality of briefs provided by Minister was satisfied—
the department, including briefs to assist statutory decision-making departmental support included
a successful transition to new
Minister is satisfied with the timeliness and quality of draft ministerial
minister’s requirements
correspondence provided by the department
Service charter
The Department of the Environment and Heritage publishes a service charter. The
charter sets out the standards of service clients can expect from the department,
their rights and responsibilities, and how to find out more about the department.
During the year the department reviewed its service charter, with an updated
charter to be released in October 2005. A feature of the new service charter is the
creation of a client service officer, an impartial contact point to accept feedback
and coordinate the department’s response to members of the public who raise
concerns about service standards.

The principal means of accessing the charter is through the department’s web site
(see www.deh.gov.au/about/comments.html). The charter is also available in hard
copy by contacting the Community Information Unit toll-free on 1800 803 772.
Complaints data
The previous service charter invited clients to provide feedback to the department

through a form which is available on the department’s web site or via email. No
formal complaints about service were received through these channels in 2004–05.
The Community Information Unit (freecall 1800 803 772) and the department’s
switchboard (02 6274 1111) also receive feedback on the department’s services
and redirect enquiries to the appropriate action officer. Few complaints were
received in 2004–05; most related to difficulties in accessing information via the
department’s web site, and were quickly resolved by the department’s web team.
Online information
The department uses the internet to Visits to departmental web sites
increase the capacity of all Australians (2004–05)
to address environmental challenges.
Total user sessions in 2004–05 = 8 769 994
The department’s web sites provide
public access to substantial holdings
of information and knowledge, and /THERWEBSITES GREENHOUSEGOVAU

deliver communication and education
messages. The web sites meet the
ANBGGOVAU
Australian Government’s online
accessibility standards. During

2004–05 there were over four million
visits to the department’s main web
site and over two million visits to the
DEHGOVAU
Australian National Botanic Gardens
web site (right).
Results are based on user sessions. ‘Other web
Access and equity sites’ supported by the department include:
travelsmart.gov.au, npi.gov.au,
ahc.gov.au, heritage.gov.au, oilrecycling.gov.au,
The Australian Government aims freshwater2003.gov.au, waterwatch.org.au,
to achieve fairer services and nctwr.org.au, audit.deh.gov.au, nht.gov.au,
nrm.gov.au. The chart does not include data for
programmes through its Access oceans.gov.au, which were unavailable at time of
and Equity Strategy. The strategy publication.
centres on implementing the Charter
201
for Public Service in a Culturally Diverse Society. The Australian Government’s

Access and Equity Annual Report reports on whole-of-government progress in
implementing the charter (see www.dimia.gov.au/multicultural/access_equity).
The main groups of people with different cultural and linguistic backgrounds with
whom the department deals are Aboriginal and Torres Strait Islander peoples, often
in remote parts of Australia.
The department has a long history of working in partnership with Indigenous

Australians in caring for land and sea areas. Key portfolio responsibilities
include the management of the Indigenous Heritage Programme, Indigenous
Protected Area Programme, the government’s main natural resource management
programmes, and national parks. This work presents significant opportunities for
government and Indigenous communities to work together to deliver a range of
conservation and heritage outcomes, from weed and fire management through to
the conservation of protected animals.
Commonwealth Disability Strategy

The Commonwealth Disability Strategy is a framework to help Australian
Government organisations improve access for people with disabilities to
government programmes, services and facilities.
The strategy’s Performance Reporting Framework helps Australian Government
organisations to measure and report on their achievements in implementing the
strategy. The framework is built around the five key roles of government: policy
adviser, regulator, purchaser, provider and employer. Results for the ‘employer’
role appear on page 232 and for the ‘purchaser’ role appear on page 245.
The department will implement an action plan on disability in 2005–06. The plan
will apply to all employees and clients of the department.
Policy adviser role

The department delivers environmental policies and programmes in a manner
which is free from discrimination and recognises and utilises the diversity of the
Australian community. The department has extensive web sites (see previous
section on online information) and a Community Information Unit to provide
access to information on the department’s activities. The department’s web site
meets the Australian Government Online standards that relate to access for people
with disabilities (www.deh.gov.au/about/accessibility.html). For technical reasons
and to meet some legal requirements, the department’s web site has a limited
number of documents that cannot be provided in the preferred HTML format.
In such cases, contact details have been provided for their supply in alternative
formats.

Regulator role
The department, including the Australian Antarctic Division, administers 38 Acts,
together with associated Regulations and subsidiary legal instruments. Legislation
is accessible via the internet (www.deh.gov.au/about/legislation.html) with
additional fact sheets available on request from the Community Information Unit.

Legislative instruments are accessible via the internet (www.comlaw.gov.au) and
administrative instruments are available in the Australian Government Gazette,
and (where required) on the department’s web site. The department may respond
to specific requests by fax, email or post.
Provider role
In the provider role, Parks Australia, the Marine Division and the Australian
Antarctic Division within the department manage Commonwealth parks, reserves
and protected areas including Kakadu, Uluru-Kata Tjuta, Booderee, Norfolk
Island, Christmas Island, and Pulu Keeling national parks. Access is provided to
these parks and reserves for tourism, recreation and commercial uses. Information
regarding parks and reserves is available in accessible formats on the department’s
web site (www.deh.gov.au/parks/commonwealth) and in hard copy from park
management. Given the nature of the terrain, physical access to the terrestrial
reserves varies for people with a disability. The marine reserves are generally less
accessible, being mostly in remote offshore areas.
203
External scrutiny
External scrutiny
Courts and tribunals
The most significant decision having ongoing implications for the work of the
department is that of the Full Court of the Australian Federal Court in Minister
for the Environment and Heritage v Queensland Conservation Council Inc [2004]
FCAFC 190. The decision affirmed an earlier Federal Court decision in the Nathan
Dam case under the Environment Protection and Biodiversity Conservation Act
1999, which was reported last year. For more information about this and other
cases, see the report on the operation of the Act in the second volume of this set of
annual reports.
Auditor-General reports
Apart from the report on the department’s financial statements on page 256, two
audit reports were tabled that had findings and recommendations of relevance to
the department.
• Audit Report No. 56 2004–05 Interim Phase of the Audit of Financial
Statements of General Government Sector Entities for the Year Ending
30 June 2005. The report presents the results of the interim phase of the
2004–05 financial statement audit. The audit encompassed a review of the
governance arrangements relating to the department’s financial management
responsibilities, and an examination of internal control, including information
technology system controls, as at 31 March 2005. The control frameworks
for the department were found to be generally effective with some scope for
improvement noted in several areas. The department accepted the findings
and recommendations made by the Australian National Audit Office. A detailed
implementation plan was developed to ensure all the findings are addressed
and the recommendations implemented early in 2005–06.
• Audit Report No. 17 2004–05 The Administration of the National Action Plan
for Salinity and Water Quality. The report recognised that the national action
plan is pioneering a new approach to natural resource management and notes
that, although there have been delays in expenditure, they were mainly caused
by delays in signing bilateral agreements. It also concluded that the programme
has contributed to significant institutional and policy reforms in the states
and territories, which will address the root cause of many salinity issues. The
Department of Agriculture, Fisheries and Forestry receives the appropriation for
the National Action Plan for Salinity and Water Quality (see page 146).

External scrutiny
Parliamentary committees
Two reports were tabled by the Senate Environment, Communications, Information
Technology and the Arts Committee:
• Turning Back the Tide: The Invasive Species Challenge—a report on the
regulation, control and management of invasive species and the Environment

Protection and Biodiversity Conservation Amendment (Invasive Species) Bill
2002, tabled on 8 December 2004
• Lurching Forward, Looking Back—a report on the budgetary and environmental
implications of the government’s energy white paper, tabled on 16 May 2005.
The government has not yet responded to these reports. An advanced draft of an
Australian Government response to the invasive species report has been prepared.
The department contributed to the Australian Government responses to the House
of Representatives Standing Committee on Agriculture, Fisheries and Forestry
report Getting Water Right(s): The Future of Rural Australia and the Senate Rural
and Regional Affairs and Transport References Committee report Rural Water
Resource Usage. The department ensured environmental issues identified in the
National Water Initiative were reflected in the government responses to these reports.
The department coordinated the government response to a report of the House of
Representatives Environment and Heritage Committee, called Employment in the
Environment Sector: Methods, Measurements and Messages. The report was tabled
on 1 December 2003. The government’s response will be tabled by November 2005,
subject to final clearances.
Commonwealth Ombudsman
There were no formal reports from the Commonwealth Ombudsman during the year.
Other external scrutiny

See the response to the Productivity Commission’s report on native vegetation
laws, page 142, and the announcement of the Productivity Commission’s inquiry
into policy framework and incentives for the conservation of Australia’s historic
built heritage, page 95.
Freedom of information
This section is presented in accordance with the requirements of section 8 of the
Freedom of Information Act 1982. The Act gives the Australian community the
right to access information held by the Australian Government. The only limits are
exemptions needed to protect essential public interests and privacy.
205
External scrutiny
Applications received
The department received 24 applications pursuant to the Act during 2004–05. One
application was made to the Administrative Appeals Tribunal. This was withdrawn
before the tribunal heard the matter.
Information about the department

Under section 8 of the Act the department has to make available information
about its functions, organisation, operations and powers that affect members of
the public. Relevant information is contained elsewhere in this annual report (the
executive summary presents an overview).
Information about categories of documents

Under section 8 of the Act the department has to report details of certain categories
of documents it maintains. The department holds a large range of documents in the
following categories:
• General policy: administrative files, consultants’ reports, memoranda of
understanding, agreements, permits, licences, submissions, guidelines for
programmes, grant documents, manuals, financial records, staffing records,
instructions of the secretary, legal documents, and tender evaluations
• Specific: Australian Antarctic Division records, committee records, and court
documents and records
• Parliamentary: briefing documents, Cabinet documents, ministerial
submissions, policy advice, ministerial correspondence, explanatory
memoranda to Acts, Ordinances and Regulations.
Some documents may have been transferred into archival custody or destroyed in
accordance with the Archives Act 1983.
Arrangements for outside participation

Under section 8 of the Act the department has to report details of arrangements
whereby members of the public can participate in certain kinds of decision-making.
The department consults members of the public and bodies outside the Australian
Government’s administration when developing policy and programmes, and
administering legislation and schemes. In addition to general public consultation,
which may be a requirement of particular legislation, the department and the
minister receive advice from various scientific and expert committees, and other
bodies. These include the Australian Heritage Council, the Threatened Species
Scientific Committee, the Biological Diversity Advisory Committee, and the
Antarctic Science Advisory Committee.

External scrutiny
Generally people can participate by making oral or written representations to

the minister or the department or by putting submissions to the various working
groups chaired by the department.
Formal arrangements under the Environment Protection (Sea Dumping) Act 1981,
Sea Installations Act 1987, Environment Protection and Biodiversity Conservation
Act 1999, and the environmental impact assessment provisions of the Antarctic

Treaty (Environment Protection) Act 1980 provide for proposals to be examined
publicly and for comments to be received.
Formal arrangements under the Territory of Heard Island and McDonald Islands
Environment Protection and Management Ordinance 1987 provide for public
consultation during the development of management plans.
Formal arrangements under the Environment Protection (Alligator Rivers Region)
Act 1978 provide for public consultation on scientific research programmes and
matters relating to the effects on the environment in the Alligator Rivers region of
uranium mining operations.
Procedures for gaining access to information

Freedom of information matters within the department are handled by the Legal
Section in the Policy Coordination and Environment Protection Division. Contact
details for the freedom of information officer are:
Phone: (02) 6274 1578
Fax: (02) 6274 1587
Email: foi_contact_officer@deh.gov.au
Written requests for access to documents should be addressed to:
The Freedom of Information Coordinator
Legal Section
Department of the Environment and Heritage
GPO Box 787
Canberra ACT 2601
For enquiries specific to the Antarctic contact:
The Director
Australian Antarctic Division
Kingston TAS 7050
207
Corporate governance
Corporate governance means the processes by which the department is directed,
controlled and held to account. It encompasses:
• the leadership of the department, and how it establishes a culture focused on
delivering outcomes
• how the department adheres to its corporate goals in a manner consistent with
its legal and policy obligations, including the Australian Public Service Values
and Code of Conduct
• how decisions are made, communicated and acted upon
• the department’s internal structures, such as committees and boards, and
external relationships
• organisational policies and systems for monitoring actions and reporting
performance.
Main results
• New streamlined outputs and targeted performance indicators were
developed for 2005–06 to improve reporting on environmental outcomes
• An internal review of the department’s corporate governance framework
found that the current systems are operating effectively
• The department began implementing the government’s response to the
Uhrig Review by assessing statutory authorities in the environment and
heritage portfolio
New performance management framework

In December 2004 the department reviewed its outputs and performance indicators
based on the government’s performance management framework.
After absorbing the Australian Greenhouse Office and National Oceans Office the
department listed 14 outputs in its additional estimates statement (see page 10).
The department simplified this to seven outputs linked to major areas of work. The
new outputs are a better fit to the department’s structure and functions.
In reviewing the performance indicators the department focused on ways to
measure the effectiveness of its programmes. The review led to a more streamlined
and focused set of indicators that recognise the challenges of measuring

performance in the health of the environment, where outcomes are achieved over
timeframes much longer than the annual reporting cycle.
The new outputs and performance indicators appeared in the 2005–06 portfolio
budget statements (see www.deh.gov.au/about/budget/2005/pbs). The
department will report against this framework in its annual report due for tabling in
October 2006.

Review of governance framework
During the year the department reviewed aspects of its governance framework
against better practice requirements in the areas of strategy and planning,
operations of the executive committees, statutory compliance, organisational
policies and ethical behaviour. The review was undertaken as part of the work
programme for the department’s Audit Committee (see ‘Committees of the
Executive Roundtable’ below). The review found that the governance framework
is operating effectively, incorporates a number of better practice and innovative
features, and is seen by the department’s senior executives to be meeting the needs
of the department and the wider portfolio.
To give a focus to corporate governance practices and functions, the department
set up a new audit and governance unit. The unit will oversee and report to the
executive on programme and project planning and implementation. It will manage
the department’s audit functions, support the department’s Audit Committee and
the committee’s Risk Assessment Panel, and continue to enhance governance
arrangements in the department.
See also: governance arrangements for purchasing, page 244.
Uhrig Review
At the Prime Minister’s request Mr John Uhrig AC reviewed corporate governance
arrangements for statutory authorities and office holders, handing down his
report—the Uhrig Review—in June 2003. The government endorsed all of the
Uhrig Review’s recommendations and began implementing them in August 2004
(see www.dofa.gov.au/governancestructures).
The first stage of the government’s response is to assess statutory authorities
in each portfolio against the principles of governance in the Uhrig Review.
The department is coordinating this work across the environment and heritage
portfolio. During 2004–05 the department completed assessments of the Sydney
Harbour Federation Trust and the Office of the Renewable Energy Regulator.
209
Work is under way to complete the remaining assessments of the Director of

National Parks and the Great Barrier Reef Marine Park Authority. The Uhrig
assessment of the Great Barrier Reef Marine Park Authority will be completed within
the government’s broader review of the Great Barrier Reef Marine Park Act 1975.
The department is well advanced in the implementation of the Uhrig
recommendations, with all assessments expected to be completed ahead of the
March 2006 deadline.
Senior management
The secretary makes decisions affecting the department’s business in consultation
with the senior managers of affected divisions of the department. Senior managers
communicate key decisions directly to employees who are affected by the
decisions and via the department’s intranet.
The names and responsibilities of the department’s senior managers are shown in
the organisation chart on page 9.
Executive Roundtable
The Executive Roundtable is the portfolio’s key senior management forum. It meets
weekly to monitor performance and review significant issues. Members are the
secretary (chair), deputy secretaries and heads of all departmental divisions and
portfolio agencies. A summary of outcomes from meetings is made available to all
employees via the department’s intranet and through regular meetings with staff
held within each division and agency.
Committees of the Executive Roundtable

The Executive Roundtable supervises eight committees that direct specific aspects
of the department’s internal affairs (see table below). Each committee reports its
decisions and recommendations to the Executive Roundtable after major meetings.
The department established the Portfolio Indigenous Affairs Coordination Group in
August 2004 following the transfer of some Indigenous programme functions from
the Department of Immigration and Multicultural and Indigenous Affairs.
During the year the department standardised meeting procedures for the senior
management committees. The department also upgraded the information about
each committee made available to staff through the department’s intranet.

Committee name Role
Audit Committee Oversees the internal audit programme, risk management, fraud prevention,
financial and management reporting, and compliance with legislation
Budget, Finance and Considers strategic budget and significant financial matters, and guides
Strategy Committee corporate governance and strategic policy activities

Compliance Executive Sets departmental policy and direction for legislative compliance, endorses
Committee operational policies and practices, sets performance measures and reviews
performance
International Steering Oversees and provides strategic direction to the international work of the
Committee department, and sets priorities for its international activities
Knowledge Management Supports improved information and knowledge management in the portfolio,
Committee including implementation of new information and communications technology
Marine and Coastal Coordinates domestic and international marine and coastal policies and
Coordination Committee programmes across the portfolio
Portfolio Indigenous Affairs Coordinates Indigenous issues across the portfolio

Coordination Group
Workforce Management Provides strategic oversight for workforce issues such as recruitment,
Committee performance management, learning and development, occupational health
and safety
Planning and review

Corporate direction
Every three to five years the secretary approves a medium-term corporate plan,
which sets out:
• key directions and challenges
• strategies for achieving the department’s outcomes
• strategies for organisational development.
The department’s corporate plan was reviewed in early 2005. A new corporate plan
will be released by November 2005 covering the period 2005–2008.
Delivery of government outputs

Each year after the Budget the secretary approves the department’s annual
strategic plan. The strategic plan expands on the corporate plan and the
outcomes and outputs in the Budget by listing priorities for the year. The
department makes the strategic plan available to all staff by publishing the plan on
the department’s intranet.
211
The head of each division then approves an annual divisional work plan.
Divisional work plans are based on the priorities listed in the strategic plan. They
are adapted during the year to accommodate new initiatives and risks.
In turn, the divisional work plans provide direction for branch, section and
individual work plans. This means employees have a clear line of sight from their
own work to the overall work of the department.

The head of each division provides a four-monthly divisional performance
report to the Executive Roundtable. The report shows performance against the
division’s work plan and highlights any emerging risks.
Workforce management
The Investors in People standard provides a framework for improving
the department’s performance through a planned approach to setting and
communicating business objectives and developing people to meet these
objectives.
The department’s performance and development scheme aligns each
employee’s work and personal development goals to the department’s annual
strategic plans.
The Workforce Management Committee approves the department’s annual
strategic people management plan. The plan sets annual goals and priorities for
human resource management, taking its direction from the department’s corporate
plan. The department makes the strategic people management plan available to
employees by publishing the plan on the department’s intranet.
A monthly ‘human resource scorecard’ report is provided to the Executive
Roundtable, focusing on workforce turnover, recruitment activities and staffing
levels.
Risk management
Risk assessments are integral to the planning and review systems. The Audit
Committee is responsible for the department’s overall risk management
policy but has a sub-committee, the Risk Assessment Panel, which oversees
implementation of the department’s risk management plans.
Internal audit, risk management and fraud prevention services are delivered under
contract by an external provider.
During the year the department started a formal process to monitor new or
emerging business risks by reviewing the four-monthly divisional reports to the
Executive Roundtable.

The department began publishing a quarterly risk management staff information

newsletter, RiskRAP. A staff survey of risk awareness was completed in order to
identify training and information needs.
A Risk Managers Network was set up to monitor developments and report on
performance. The network comprises executive-level staff responsible for the
various risk areas within the department including insurable risk, business, fraud,

IT and physical security, and business continuity.
Success in managing business risks led to the department receiving a 5 per cent
discount off its Comcover premium with the completion of the 2005 Comcover
Risk Management Benchmarking Survey in April 2005.
Fraud control
The department has a fraud control plan and conducts risk assessments
to prevent and manage fraud within the department, in accordance with the
Commonwealth Fraud Control Guidelines.
In October 2004 the Audit Committee endorsed the department’s fraud control
plan for 2003–2005, which was subsequently approved by the secretary and made
available to all employees. The Australian Greenhouse Office and the National
Oceans Office maintained separate fraud control procedures. The department’s
fraud control plan is being updated to include the Australian Greenhouse Office
and National Oceans Office.
Ethical standards
Departmental codes of conduct
The department’s employees must comply with the Australian Public Service
Values and Code of Conduct. Detailed guidance is available to employees via the
department’s intranet. The guidance includes a code of conduct specific to the
department.
Individual performance agreements require a personal commitment to the
Australian Public Service Values and Code of Conduct.
The department’s service charter requires employees to act with integrity,
responsiveness and responsibility, and to strive to give their best to every task, when
dealing with clients (see page 200).
The Australian Antarctic Division applies a Code of Organisational Behaviours to its
Australian-based employees and an Antarctic Service Code of Personal Behaviour
to personnel (whether employees or not) in the Antarctic and sub-Antarctic.
213
Departmental values
In addition to the Australian Public Service Values, the department’s values are:
• Caring for the environment
• Engaging and responding to stakeholders
• Accepting responsibility
• Being accountable
• Providing leadership and being active team contributors
• Being personally committed to learning and development
• Achieving results
Maintaining ethical standards

A network of workplace contact officers is maintained to raise awareness about
acceptable behaviour in the workplace and to assist employees with complaints.
When new employees join the department they attend an orientation programme
that introduces them to the specific requirements of the Australian Public Service
code of conduct, including the need to disclose any potential conflicts of interest.
The programme illustrates commonly encountered ethical issues. Participants in
the graduate programme also attend an ethics course.
Guidelines available on the department’s intranet warn staff against the
inappropriate use of information technology. The department’s whistleblower
policy ensures that allegations are treated seriously and investigated independently
in a timely manner.
As part of its strong commitment to an Antarctic culture that respects tolerance,
diversity, the environment and agreed social standards, the Australian Antarctic
Division applies its behavioural codes in its human resource management
strategies, including recruitment and performance management.

Workforce
Workforce
The Department of the Environment and Heritage manages its people to ensure the
achievement of corporate goals and to meet its changing business needs.

Main results
• Following on from a major staff survey, procedures for recruitment,
performance management, workload management, and change
management were reviewed and updated
• The refresh of the department’s IT systems was brought forward to
respond to staff concerns
• The department’s status as an Investor in People was reconfirmed
• New certified agreements came into force during the year, improving pay
and working conditions, especially conditions related to work–life balance
• The intake of the graduate recruitment programme was expanded
Staff survey completed

From June–July 2004 the department conducted an independently managed
staff attitude survey. This was a major undertaking with 76 per cent of staff
responding. There were many positive results. Factors that indicated the health of
the organisation were work team attitude, supervisory performance, job security
and individual job match and recognition. Areas that needed more attention were
IT systems and support, management of under-performance, individual workloads
and selection processes.
Generally, the survey supported the departmental results in the State of the Service
Employee Survey 2003–04 in which the department performed as well as or better
than the Australian Public Service-wide result on a number of questions, including
managing in accordance with the Australian Public Service Values, and individual
performance feedback.
The secretary provided detailed briefings to all employees on the staff survey
during 2004–05 and initiated a number of projects to address the findings at a
whole-of-department level. Reviews of recruitment and selection, performance
management, change management and workload management were conducted
under the direction of the department’s Workforce Management Committee.
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Workforce
As a result of these reviews, the recruitment processes of the department have

been completely redocumented and streamlined with training and quality
assurance mechanisms to ensure application of the merit principle.
Building on the proven foundations of the department’s performance and
development scheme, new streamlined and more user-friendly guidelines were
introduced (see page 226). Targeted training to support the scheme is planned for
later in 2005.
A change management protocol was developed emphasising planning,
communication and involvement of staff as key elements in successful
change management. A structured workload management framework is being
implemented to achieve the critical balance of workload and resources.
In response to the staff survey, two flagship training programmes are under
development: a manager–supervisor programme, and a separate leadership
programme for senior level staff. In addition the refresh of the department’s IT
systems was brought forward.
Divisions provided improvement plans to the secretary in response to issues raised
by the staff survey. The department will monitor progress in implementing these
plans during 2005–06.
Together with enhanced and upgraded IT systems, and improved communication
mechanisms, all the initiatives deriving from the staff survey are designed to make
the department a more productive and better place to work.
Investors in People
The department’s Investors in People certification was renewed in November 2004
after a major three-yearly audit. This certification recognises the department as a
leader in supporting and managing its workforce—an employer of choice.
Staff turnover and retention rates

While the department’s overall turnover rate (including promotions and transfers
to other Australian Public Service agencies) for 2004–05 was 28.7 per cent, the
retention rate (proportion of ongoing employees retained for the full year) was
89.8 per cent for 2003–04, closer to the Australian Public Service median. The
department’s above average percentage of non-ongoing staff (primarily generated
by seasonal employment needs in the Australian Antarctic Division and some of
the national parks) explains the relatively high turnover rate. The turnover rate is
below last year’s level.
The following table illustrates the number of changes to the department’s senior
executive staff during the year.

Workforce
Mobility of senior executive service employees

(as at 30 June of each financial year)
Type of movement 2003–04 2004–05
Commencement 4 3

Cessation 3 6
Transfer or promotion within department 3 8
Note: Does not include movements of Australian Greenhouse or National Oceans Office senior executive employees
prior to, or as a result of, the transfer of the functions of these agenicies into the department.
Makeup of workforce
The department has a diverse workforce carrying out a wide range of
responsibilities and tasks across Australia and in Australia’s external territories.
Key to job classification symbols in the following tables

Secretary Secretary of the department.
PEO Principal Executive Officer. Refers to Director of National Parks, a
statutory office holder.
SES 1–3 Senior Executive Service bands 1–3. Includes Chief of Division,
Australian Antarctic Division.
EL 1–2 Executive Level bands 1–2. Includes equivalent Australian Antarctic
Division bands 7–8.
APS 1–6 Australian Public Service bands 1–6. Includes equivalent Australian
Antarctic Division bands 1–6. Includes graduate programme recruits.
RS 1–3 Research Scientist (equivalent to APS 6 or EL 1), Senior Research
Scientist (equivalent to EL 2) and Principal Research Scientist
(equivalent to EL 2).
AMP 1–2 Antarctic Medical Practitioner bands 1–2.
AE 1–3 Antarctic Expeditioner bands 1–3.
LO 1–3 Legal Officer (equivalent to APS 3–6), Senior Legal Officer (equivalent
to EL 1) and Principal Legal Officer (equivalent to EL 2)—new
classifications created in July 2004.
PAO 1–4 Public Affairs Officer 1–2 (equivalent to APS 3–6), Public Affairs
Officer 3 (equivalent to EL 1) and Senior Public Affairs Officer
(equivalent to EL 2).
217
Job classification, gender and location—2004 (as at 30 June 2004)

Classification
Workforce
Location Gender Total

Secretary PEO SES 1–3 EL 1–2 APS 1–6 RS 1–3 AMP 1–2 AE 1–3 PAO 1–4
Female 8 159 405 17 589
Australian Capital Territory
Male 1 1 21 203 221 2 4 453
Female 2 19 21
Jervis Bay Territory
Male 1 26 27
Female 8 113 121
Northern Territory
Male 3 13 144 6 166
Female 0
New South Wales
Male 0
Female 0
Norfolk Island
Male 5 5
Female 1 1
Western Australia
Male 2 2
Female 3 3
Indian Ocean territories
Male 1 14 15

Female 1 1
Victoria
Male 1 1
Female 4 4
Queensland
Male 0
Female 0
South Australia
Male 3 3
Female 1 10 82 5 98
Tasmania
Male 4 41 118 30 3 196
Female 1 5 6
Antarctica
Male 4 54 58
Total 1 1 37 450 1 150 43 8 59 21 1 770
Job classification, gender and location—2005 (as at 30 June 2005)
Classification
Location Gender Total
Secretary PEO SES 1–3 EL 1–2 APS 1–6 RS 1–3 AMP 1–2 AE 1–3 LO 1–3 PAO 1–4
Female 10 204 497 1 15 727
Australian Capital Territory
Male 1 1 24 263 253 2 4 4 552
Female 3 12 15
Jervis Bay Territory
Male 3 16 19
Female 12 96 108
Northern Territory
Male 3 13 133 5 154
Female 2 2
New South Wales
Male 0
Female 0
Norfolk Island
Male 6 6
Female 1 2 3
Western Australia
Male 2 1 3
Female 4 4
Indian Ocean territories
Male 1 13 14
Female 2 2
Victoria
Male 1 1 2
Female 3 1 4
Queensland
Male 3 3
Female 1 1
South Australia
Male 3 3
Female 1 17 98 6 1 1 124
Tasmania
Male 5 48 114 35 3 205
Female 2 6 8
Antarctica
Male 3 38 41
Total 1 1 43 582 1 247 48 9 44 5 20 2 000
219
Workforce

Workforce
Full-time employees under the Public Service Act 1999—2004

(as at 30 June 2004)
Ongoing Non-ongoing Total by gender

Division Male Female Sub- Male Female Sub- Male Female Total
total total
Parks Australia 133 63 196 39 28 67 172 91 263

Australian Antarctic Division 149 59 208 93 25 118 242 84 326
Department—other divisions 364 425 789 40 49 89 404 474 878
Department total 646 547 1 193 172 102 274 818 649 1 467
Full-time employees under the Public Service Act 1999—2005


total total
Parks Australia 130 67 197 35 20 55 165 87 252

Department—other divisions 468 563 1 031 41 57 98 509 620 1 129
Department total 749 692 1 441 143 106 249 892 798 1 688
Part-time employees under the Public Service Act 1999—2004


total total
Parks Australia 4 15 19 60 60 120 64 75 139

Department total 28 108 136 78 87 165 106 195 301

Workforce
Part-time employees under the Public Service Act 1999—2005


total total

Parks Australia 3 16 19 53 56 109 56 72 128
Department total 39 118 157 68 84 152 107 202 310
Employment agreements
All senior executive service employees have Australian workplace agreements.
The department offers Australian workplace agreements to all ongoing substantive
Executive Level 1 and 2 employees, and to ongoing employees with equivalent
classifications. Australian workplace agreements are offered to other employees on
a case-by-case basis.
The department’s other Australian Public Service employees—the bulk of its
workforce—are covered by either the department’s certified agreement or the
Australian Antarctic Division’s certified agreement.
The independent legal status of the Australian Greenhouse Office and the National
Oceans Office as executive agencies ended on 26 October 2004 and staff of both
agencies became employees of the department from 27 October 2004
(see footnote, page 8). Under machinery of government arrangements, salary levels
for employees moving into the department were maintained under Regulation 8
of the Public Service Act 1999. From 27 October 2004 the department’s certified
agreement covered employees who were previously covered by the Australian
Greenhouse Office certified agreement. The department offered new Australian
workplace agreements to former Australian Greenhouse Office and National
Oceans Office employees who were on Australian workplace agreements with
those agencies.
221
Workforce
Number of employees under various types of employment agreements

Classification
Type of agreement Total
SES non-SES
Australian workplace agreements 43 462 505

Certified agreement (department) 0 1 221 1 221

Certified agreement (Australian Antarctic Division) 0 272 272
Total 43 1955 1 998
Notes:
• ‘SES’ stands for senior executive service and includes the Chief of Division position in the Australian Antarctic Division.
• These figures exclude the secretary and the Director of National Parks (classed as a Principal Executive Officer)
as they are not employed under the certified agreements or an Australian workplace agreement. When these are
included total number of staff is 2 000 (c.f. table on page 219 ‘Job classification, gender and location—2005’).
• The certified agreement (department) figure includes employees of the Australian Greenhouse Office and the
National Oceans Office transferred to the department on 27 October 2004.
• Australian workplace agreement figures include the Australian Antarctic Division, the Australian Greenhouse Office
and the National Oceans Office. The figures for Australian workplace agreements do not include employees on
temporary transfer to another agency who would otherwise be covered by an Australian workplace agreement.
• All figures include staff on leave without pay and irregular or intermittent employees.
Base salaries—excluding the Australian Antarctic Division (as at 30 June 2005)

Classification Certified agreement Australian workplace
agreement
Australian Public Service Level 1–2 $30 447–$39 421

Australian Public Service Level 3 $40 267–$44 346
Executive Level 1 $67 552–$75 059 $67 519–$86 331
Executive Level 2 $77 913–$91 285 $77 913–$100 706
Public Affairs Officer 1 $45 133–$52 945
Public Affairs Officer 2 $57 505–$63 559
Public Affairs Officer 3 $71 060–$88 331 $71 060–$88 331
Senior Public Affairs Officer 1–2 $91 285–$95 865 $91 285–$98 865
Legal Officer $41 290–$62 347
Senior Legal Officer $67 552–$82 194 $67 552–$82 194
Principal Legal Officer $88 331–$93 617 $88 331–$96 617
Research Scientist $57 505–$75 059 $57 505–$75 059
Senior Research Scientist $77 913–$92 839 $77 913–$95 839
Principal Research Scientist $94 395–$105 706 $94 395–$108 706

Workforce
Base salaries—excluding the Australian Antarctic Division continued ...

agreement
Senior Principal Research Scientist $111 720–$121 817 $111 720–$124 817
Senior Executive Service 1 $101 000–$117 012

Notes:
• Includes salaries offered in the Australian workplace agreements of the National Oceans Office and the Australian
Greenhouse Office.
• Senior executive service employees may access a further salary point, subject to continuing high performance.
• Does not include salaries for Principal Executive Officer position or the secretary, as they are not employed under
the certified agreement or an Australian workplace agreement.
Base salaries—Australian Antarctic Division (as at 30 June 2005)

agreement
Australian Antarctic Division Band 1 $31 564–$34 491

Executive 1 $70 110–$74 380 $70 801–$75 124
Executive 2 $81 275–$97 050 $82 088–$98 021
Research Scientist $55 345–$74 380 $64 801–$75 124
Senior Research Scientist $76 610–$97 050 $77 376–$98 021
Principal Research Scientist $99 961–$109 230 $100 961–$110 322
Senior Principal Research Scientist $115 884–$126 630 $117 043–$127 896
Antarctic Medical Practitioner Level 1 (Head Office) $91 480–$102 959 $92 395–$103 989
Antarctic Medical Practitioner Level 2 (Head Office) $106 049–$115 884 $107 109–$117 043
Expeditioner Band 1 $43 527–$58 285
Antarctic Medical Practitioner Band 1 $105 161–$117 809
Note:
• Senior executive service employees may access a further salary point, subject to continuing high performance.
223
Workforce
Certified agreements
The certified agreement for staff (excluding the Australian Antarctic Division)
began operating on 1 July 2004 with a nominal expiry date of 30 June 2006.
At 30 June 2005, the agreement covered 1 221 employees.
The agreement continues to support staff in balancing their work and personal
lives and includes a competitive remuneration framework of pay and conditions.

Under the agreement staff received a 4 per cent pay increase in July 2004, in
recognition of improved productivity.
Following extensive negotiations with staff and unions, the certified agreement
for employees in the Australian Antarctic Division was certified and commenced
operation on 24 December 2004. The agreement covers 272 staff, the majority of
the division’s employees, and has a nominal expiry date of 24 December 2006. In
recognition of productivity measures introduced in the agreement, staff received a
4.45 per cent pay increase from certification. The new agreement also includes a
commitment to assist employees to enhance their health and well-being.
Australian workplace agreements—executive level

Most agreements for executive level employees feature:
• access to an increased top pay point for Executive Level 2 and equivalent
employees
• provision for the secretary to determine a supplement to base salary in
recognition of additional responsibilities or special skills required
• removal of deeming of recreation leave
• access to performance pay.
Australian Antarctic Division agreements for executive level employees and
medical practitioners include specific provisions covering:
• employment conditions derived from the Australian Antarctic Division’s
conditions of service manual, which effectively maintains the conditions
available under the Australian Antarctic Division’s certified agreement
• a requirement to give four weeks’ notice of resignation
• access to a range of non-cash benefits including reimbursement for financial
advice, internet service provider costs, airline club membership, and limited
personal use of laptops and mobile phones
• access to performance pay.

Workforce
Performance pay for employees up to Executive Level 2

Classification
Performance pay statistic APS 1–6 Executive Level 1 Executive Level 2
2004–05 2003–04 2004–05 2003–04 2004–05

Number of performance payments 11 148 194 86 154
Average performance pay $2 597 $4 621 $4 533 $6 201 $5 580
Range of performance pay $1 135–$3 715 $210–$8 404 $491–$9 519 $1 176–$10 586 $999–$10 893
Total paid $28 562 $683 987 $879 341 $533 327 $859 299
Notes:
• ‘APS’ stands for Australian Public Service.
• Performance pay bonuses for the 2002–03 appraisal cycle were paid during 2003–04. Performance pay bonuses for
the 2003–04 appraisal cycle were paid during 2004–05.
• Payments shown for executive level employees in 2003–04 do not include payments made to employees of the
National Oceans Office and the Australian Greenhouse Office, which were then not part of the department.
• Payments for Australian Public Service 1–6 employees apply only to employees of the Australian Greenhouse Office
and National Oceans Office who were paid in 2004–05 prior to those agencies being brought into the department.
Australian workplace agreements—senior executive level

The department’s Australian workplace agreements for its senior executive service
employees are comprehensive agreements that normally last two years. To ensure
it remains competitive with other employers, the department reviews its senior
executive service remuneration framework prior to renewing these agreements.
The department uses the Mercer Senior Executive Service Remuneration Survey
and other remuneration sources to determine the framework.
Agreements for senior executive service employees provide base pay, performance
pay and other benefits, such as a maintained vehicle and home-based computing.
The nominal expiry date for current senior executive service Australian workplace
agreements is 30 June 2005. A revised agreement, including a revised remuneration
framework, will be offered to all ongoing senior executive service employees and
employees on long-term temporary reassignment of duties.
Remuneration for senior executive service employees is based on the following
principles:
• financial rewards are directly related to the success of the department in
meeting the outputs required by government
• individuals are rewarded according to their assessed contribution in meeting
performance expectations
• remuneration is competitive with other similar organisations
225
Workforce
• remuneration arrangements are flexible so that the department can recruit and
retain staff with special skills
• remuneration arrangements are streamlined where possible to avoid
unnecessary administrative costs.
From time to time the secretary reviews this remuneration framework.
The payment of a performance bonus is based on the individual’s performance

during an appraisal cycle. All senior executive service employees are eligible for
the payment of a bonus but payment is subject to continuing high performance.
The current Senior Executive Service Performance Pay Guidelines provide for a
percentage of base salary bonus to be paid. This is calculated after the assessment of
the employee and is usually paid in the first quarter of the following financial year.
Performance pay for senior executive service employees

Classification
Performance pay statistic SES Bands 2 and 3 SES Band 1
2003–04 2004–05 2003–04 2004–05
Number of performance payments 12 10 25 31

Average performance pay $10 791 $11 455 $7 303 $7 932
Range of performance pay $5 144–$13 566 $7 156–$14 658 $1 549–$8 897 $2 309–$11 277
Total paid $129 495 $114 553 $182 585 $245 898
Notes:
• ‘SES’ stands for senior executive service.
• Performance pay bonuses for the 2002–03 appraisal cycle were paid during 2003–04. Performance pay bonuses for
the 2003–04 appraisal cycle were paid during 2004–05.
• Some payments were made on a pro-rata basis as employment did not span the full appraisal period.
• Payments shown for 2003–04 do not include payments made to employees of the National Oceans Office and the
Australian Greenhouse Office, which were then not part of the department.
• Payments shown do not include the Principal Executive Officer or the secretary.
Performance management
In response to the staff survey results the department reviewed its performance
and development scheme. Key immediate changes include:
• revised documentation to remove jargon, making the forms more intuitive and
therefore easier to complete
• revised and streamlined policy and procedures, using personalised plain
language
• further clarification of responsibilities for each employee and supervisor for
completing performance agreements

Workforce
• improved links between the performance and development learning plan and
wider departmental development programmes
• new training programmes on how to develop and maintain a good performance
agreement, how to develop good performance expectations, and giving and
receiving feedback.

Further issues arising from the review will be considered by the Workforce
Management Committee during the coming year.
The revised scheme will be implemented from 1 July 2005.
Learning and development

Effectiveness of ongoing strategies
Graduate programme: Each calendar year
the department recruits graduates from various
academic disciplines, offering them a year of
professional development through training
programmes and work rotations. Existing
departmental employees also have the opportunity
to participate in this programme. In 2004
15 graduates participated in the programme and
the majority were placed in positions. In 2005
Judy Lai is one of the 18 graduates were recruited (left). The programme
department’s graduate recruits
for 2005. She has a postgraduate
continues to increase the diversity and depth
degree in environmental and of talent in the department’s workforce while
resource management but introducing fresh ideas and attitudes to the
has previously worked in the
fields of financial management
workplace. The department is exploring options
and management consulting. to increase the number of law, economics and
Judy writes: ‘One of the key commerce applicants for the graduate programme.
attractions of the department
is the range of issues it covers. Online learning: The department continued to
After joining the graduate use online learning to assist employees in learning
programme I worked on
marine reef protection, to use computer applications. The department will
governance structures and extend this strategy during 2005–06 to include its
hazardous wastes. I am very orientation and occupational health and safety
excited about the ongoing
challenge of working on diverse programmes. In early 2005 the department began
environmental matters, and an online security awareness training programme.
the learning opportunities this All employees who apply for a security clearance
presents.’ Judy is now working
on inland waters issues. must complete and pass the training before they
receive their clearance.
227
Workforce
Cultural diversity programmes: The department has cross-cultural and

cultural diversity development programmes to enhance the appreciation of
cultural diversity. Employees participating in these programmes can broaden their
understanding of Indigenous and other cultural groups and gain experience in
collaborating with these groups.
New strategies
Individual learning: As part of the department’s performance and development
scheme, individual employees must complete learning plans with their supervisor,
to identify learning needs and solutions related to the work they are required
to complete under their performance agreement. The staff survey raised some
concerns about the lack of links between the learning plans and the wider
divisional and departmental development programmes. As a result, the learning
plans have been redesigned to clearly identify both the learning needs and the
solutions. In addition, procedures have been put in place to ensure the agreed
learning solutions are passed on to the support units within each division and the
department’s learning and development team, to be taken into account in their
planning for both divisional and departmental development programmes.
Leadership and management: To prepare employees for leadership or
managerial roles the department is creating two programmes based on the
Integrated Leadership Strategy developed for the Australian Public Service: the
Management Supervisory Model and the Leadership Model. These models define
the department’s expectations of its managers and leaders and will be implemented
in 2005–06.
Mobility and development: A mobility and development programme for
the department’s Executive Level 2 employees was implemented with eight
participants in 2004–05. The programme aims to broaden the leadership skills,
experience and opportunities of employees at this level.
Work–life balance
The department remains committed to the work–life balance of its employees. The
department’s certified agreements offer a range of leave provisions which assist
employees to meet work and outside work commitments.
As part of the 2004–2006 Certified Agreement the department is conducting a
feasibility study into the provision of childcare services for employees located in
Canberra and Darwin.
The department involves its staff in decision-making processes through informal
and formal mechanisms such as workshops, surveys, the department’s Consultative
Committee and relevant sub-committees.

Workforce
Occupational health and safety

This section is presented in accordance with the requirements of section 74 of the
Occupational Health and Safety (Commonwealth Employment) Act 1991.
The department is committed to preserving the health, safety and welfare of its staff
and any other persons at or near work sites.

The department’s Occupational Health and Safety Policy aims to provide and
maintain a safe and healthy workplace in line with the requirements of the
Occupational Health and Safety (Commonwealth Employment) Act 1991. The
department works to achieve high standards of occupational health, safety and
rehabilitation in all its work locations and operations by providing a safe system of
work to prevent work-related injuries and illnesses.
Under its Rehabilitation Policy and guidelines, the department supports injured and
ill employees and provides an early return to work programme.
The department’s Canberra-based Occupational Health and Safety Committee
meets regularly to address a wide range of issues. Each of the mainland national
parks, other departmental offices on the mainland and in Tasmania, and the
Antarctic stations maintain local occupational health and safety committees to
address site-specific issues.
A network of health and safety representatives looks after the health and welfare
of employees within designated workgroups throughout the department. On
appointment, all health and safety representatives undergo Comcare-approved
training to enable them to fulfil their roles.
Agreements with employees

During the year the department developed a new Occupational Health and Safety
Policy and Agreement for its non-Antarctic operations. The Australian Antarctic
Division has a separate Occupational Health and Safety Agreement.
The new agreement was developed through consultation with management and
the involved unions. The agreement recognises a sharing of responsibilities and the
commitment of all parties to maintaining health and safety in the workplace, with
the aim of minimising the human and financial costs of injury and illness through
active prevention strategies.
229
Workforce
Routine support for employees

The following measures undertaken during the year are routine support that the
department provides for its employees.
Measure Results
Orientation sessions to inform new employees Australian Antarctic Division: conducted 7

of occupational health and safety legislation, orientation sessions
responsibilities and procedures
Rest of the department: 193 employees attended
sessions
Training for those employees who become first aid Australian Antarctic Division: no new first aid officers
officers and health and safety representatives required; all wintering Antarctic expeditioners
attended first aid training; 6 health and safety
representatives received appropriate training
Rest of the department: 44 first aid officers and
97 park rangers trained in first aid; 22 health and
safety representatives received appropriate training
Ergonomic and work station assessments by in- Australian Antarctic Division: 102 assessments
house and external occupational therapists conducted—2 were in-house
Rest of the department: 184 assessments
conducted—8 were in-house
Reimbursement of the costs of having eyesight tests Australian Antarctic Division: 37 tests paid for
for using screen-based equipment
Rest of the department: 41 tests paid for
Reimbursement of the costs of being screened Australian Antarctic Division: all Antarctic
for skin cancer and hearing loss, for field-based expeditioners have hearing tests undertaken as part
employees of their recruitment medical, with no reimbursement
involved
Rest of the department: reimbursement of $192
Employees Assistance Programme, which is also Australian Antarctic Division: 36 people used the
available to the families of employees service provided by consultants (OSA Group)
Rest of the department: 306 appointments made
with Davidson Trahaire Corpsych, the provider, from
1 March 2004–28 February 2005 (Davidson Trahaire’s
reporting cycle)
Testing and tagging of electrical equipment in the 793 items tested and tagged
Canberra offices

Workforce
Compensation and rehabilitation

Under the rehabilitation policy and guidelines, the department continued to
provide support for injured and ill employees and provided an early return to work
programme. The following table summarises activity in this area.
Measure Results

Return to work plans in place for injured staff Australian Antarctic Division: 7 plans in place; 6 plans
ceased
Rest of the department: 6 plans in place; 0 plans
ceased
Response to workers compensation claims Australian Antarctic Division: 21 new claims

responded to; 26 ongoing claims in progress
Rest of the department: 54 new claims responded to;
82 ongoing claims in progress
Other measures taken during the year

The department undertook other measures during the year to ensure the health,
safety and welfare at work of employees and contractors as follows:
• The department provided prevention programmes to address occupational
overuse syndrome and stress for Canberra-based employees. Employees
attended programmes to strengthen posture and manage back-related issues.
• The department reviewed and updated its policies for its non-Antarctic
operations on incident reporting, incident investigation, hazard identification
and risk assessment. The changes reflect better practices and legislative
changes. Specifically, risk assessment methodologies were revised. Risk
assessments were integrated with the general day-to-day activities of staff.
Activity safety analysis procedures and forms were developed for field-based
and high-risk activities.
• The department improved its occupational health and safety management
systems for its non-Antarctic operations. An online management system
was developed and user acceptance testing conducted. The system will be
implemented in early to mid-2006. The department purchased an online
training system and is currently developing it prior to implementation.
• Also purchased was an occupational health and safety information system
based on AS 4801: Occupational health and safety management systems—
specification with guidelines for users. The information is currently being
customised to suit departmental requirements.
231
Workforce
• The Australian Antarctic Division improved its occupational health and safety
management systems. The division’s online reporting system was enhanced.
Training packages and training needs analysis templates were developed, and a
training calendar published. The division implemented templates for induction
checklists and job safety analysis, workshop audit documents, and incident
analysis summary sheets.
Number of reports under section 68 of the Act

Section 68 of the Occupational Health and Safety (Commonwealth Employment)
Act 1991 relates to the requirement for employees to report to Comcare accidents
or incidents that cause death or serious personal injury, incapacity, or that are
otherwise dangerous. The following table illustrates the number of accidents or
occurrences that were reported to Comcare under section 68 of the Act.
Workplace Number of reports
Canberra-based workplaces 5
Parks Australia remote workplaces 40
Australian Antarctic Division 6
Investigations conducted during the year

Two internal investigation reports relating to the department’s Antarctic operations
were provided to Comcare; one remains outstanding. No directions were issued
under section 45 of the Occupational Health and Safety (Commonwealth
Employment) Act 1991, nor were any notices given under sections 29, 46 or 47 of
the Act.

In the employer role, employment policies, procedures and practices of the
department comply with the requirements of the Disability Discrimination Act
1992. Recruitment information is available in electronic formats and contact details
are provided should special assistance be required (www.deh.gov.au/jobs). The
principle of reasonable adjustment (accommodating the additional needs of a
person who can perform the inherent requirements of a job, where reasonable—
such as providing a large computer screen for a person with impaired vision)
is applied within the department. Learning and development programmes
are accessible to employees with disabilities and, where appropriate, contain
information on disability issues. Complaints and grievance mechanisms are in
place and available to all employees.

Workforce
The following table presents results against key performance indicators from the
Commonwealth Disability Strategy. The department will implement an action plan
on disability in 2005–06. The plan will apply to all employees and clients of the
department.
Performance indicator Result

Recruitment information for potential job applicants Applicants are requested to advise whether they
is available in accessible formats on request require accessible formats when applying, and also
asked to advise whether special arrangements are
required for them during the recruitment process
Agency recruiters and managers apply the principle The department’s Recruitment and Selection Policy
of reasonable adjustment to be implemented on 1 July 2005 will require
recruiters and managers to apply this principle
Training and development programmes consider All managers are responsible for ensuring the
the needs of staff with disabilities training and development needs of their staff are
appropriately met
Training and development programmes include Relevant information is included in cases where
information on disability issues as they relate to the the department contracts training services from
content of the programmes providers. Managers are responsible for monitoring
whether information on disability issues is provided
when referring staff to individual programmes
provided on the private market
Complaints or grievance mechanisms, including The certified agreement sets out complete
access to external mechanisms, are in place to processes for complaints and grievances
address issues and concerns raised by staff
These processes apply to all employees and
situations
233
Finances
Finances
Financial performance
Overall the department recorded a surplus of $3.958 million, which was favourable
against the Budget by $4.628 million (see table below). This surplus carries forward
into cash reserves. The cash available from the surplus will be used to meet
future budget pressures, fund necessary capital works and meet some unfunded
liabilities.
During the year, the department absorbed the functions and the net assets of the
Australian Greenhouse Office and the National Oceans Office (see page 8). The
main difference in the department’s resources during the year compared with
2003–04 was the transfer into the department of $55.583 million. This amount was
the balance of the appropriations to the Australian Greenhouse Office and the
National Oceans Office that had not been spent as at 3 November 2004, when the
separate financial status of these agencies ended.
2004 2005 2005 2005

Actuals Budget Actuals Variance
$000's $000's $000's $000's
Departmental—Outcome 1 Revenues 171 045 232 997 242 724 9 727

Expenses (165 467) (233 667) (232 022) 1 645
Surplus (Deficit) 5 578 ( 670) 10 702 11 372
Departmental—Outcome 2 Revenues 91 150 87 391 99 769 12 378

Expenses (91 090) (87 391) (106 513) (19 122)
Surplus (Deficit) 60 0 (6 744) (6 744)
Total departmental Revenues 262 195 320 388 342 493 22 105
Expenses (256 557) (321 058) (338 535) (17 477)
Surplus (Deficit) 5 638 ( 670) 3 958 4 628
Administered expenses, specific payments to the states and territories, and special accounts
Administered—Outcome 1 Revenues 9 327 9 343 10 418 1 075

Expenses (14 666) (122 878) (97 018) 25 860
Administered specific payments to Revenues 1 725 0 4 466 4 466

the states and territories, and special Expenses (252 875) (341 130) (327 968) 13 162
accounts—Outcome 1
Total administered Revenues 11 052 9 343 14 884 5 541

Expenses (267 541) (464 008) (424 986) 39 022

Finances
The two comparison tables below explain the main features of the department’s
funding in 2004–05. The department’s funding is listed in more detail in the
summary resource tables in the following pages (pages 236–242).
Comparison with Budget

Funding class Revenues Expenses
Departmental Increased by $9.727 million due to Decreased by $1.645 million due to some
Outcome 1 additional recoveries from other sources. minor delays in grant programmes.
Departmental Increased by $12.378 million primarily Increased by $19.122 million due to:
Outcome 2 due to the recognition of insurance
• the recognition of insurance claims
claim recoveries for Casey station and
recoveries for Casey station and
Macquarie Island, which were not
Macquarie Island, which were not
budgeted.
budgeted ($9.571 million)
• asset threshold changes ($4.161 million)
• higher fuel prices ($1.317 million)
• other operating costs ($4.073 million).
Administered Increased by $1.475 million due to Decreased by $25.860 million due to:
Outcome 1 greater than expected grant refunds.
• underspends in various programmes
as a result of Australian Greenhouse
Office functions being transferred into
the department—the programmes had
committed funds but expenditure was
deferred to 2005–06 ($15.163 million)
• an underspend in the Maintaining
Australia’s Biodiversity Hotspots
Programme ($7.329 million)
• an underspend in the Regional
Natural Heritage Programme
($3.171 million) and the Indigenous
Heritage Programme ($0.197 million).
Administered Decreased by $13.162 million primarily

specific payments due to an underspend in the Renewable
and special accounts Remote Power Generation Programme.
235
Finances
Comparison of departmental funding with previous year (2003–04)

Funding class Revenues Expenses
Departmental Increased by $71.679 million due to: Increased by $66.555 million due to:
Outcome 1
• the absorption of the Australian • the absorption of the Australian
Greenhouse Office and National Greenhouse Office and National
Oceans Office ($55.583 million) Oceans Office ($48.977 million)

• additional funding ($14.931 million) • additional funding as explained at left
for various new initiatives including:
• additional depreciation and write down
- the Australian Water Fund costs of assets ($2.647 million).
- Securing Australia’s Energy Future
- the removal of fees at Kakadu
National Park
- administrative costs associated with
business restructuring assistance
component of the Great Barrier
Reef Structural Adjustment Package.
Departmental Increased by $8.619 million primarily Increased by $15.423 million primarily

Outcome 2 due to recognition of additional due to recognition of additional
insurance recoveries. insurance recoveries, write-down
in assets as a result of a change in
accounting policy, and higher fuel prices.
Summary resource tables

Key to column headings in the following tables
2004 Actuals Actual revenues and expenses for 2003–04 as at 30 June 2004.
2005 Budget The department’s revised budget shown in the 2004–05
portfolio additional estimates statements.
2005 Actuals Actual revenues and expenses for 2004–05 as at 30 June 2005.
2005 Variance The difference between the revised budget and the actual
results for 2004–05, i.e. 2005 Actuals – 2005 Budget.

Finances
Outcome 1—Departmental
2004 2005 2005 2005
$000's $000's $000's $000's
Outcome 1—Departmental resourcing

Atmosphere Revenues 18 561 14 723 14 322 ( 401)
Expenses (16 445) (14 765) (14 087) 678
Surplus (Deficit) 2 116 ( 42) 235 277
Biodiversity Revenues 32 262 25 521 26 468 947

Expenses (33 112) (25 594) (26 106) ( 512)
Surplus (Deficit) ( 850) ( 73) 362 435
Coasts and oceans Revenues 3 649 16 277 18 514 2 237

Expenses (1 473) (16 324) (19 480) (3 156)
Surplus (Deficit) 2 176 ( 47) ( 966) ( 919)
Environmental assessments Revenues 13 878 12 405 13 869 1 464

and approvals Expenses (14 386) (12 441) (13 917) (1 476)
Surplus (Deficit) ( 508) ( 36) ( 48) ( 12)
Heritage Revenues 18 185 24 586 24 122 ( 464)

Expenses (17 204) (24 657) (24 552) 105
Surplus (Deficit) 981 ( 71) ( 430) ( 359)
Human settlements Revenues 28 936 31 597 28 542 (3 055)

Expenses (30 399) (31 688) (29 323) 2 365
Surplus (Deficit) (1 463) ( 91) ( 781) ( 690)
Inland waters Revenues 8 138 13 832 16 574 2 742

Expenses (6 231) (13 872) (12 977) 895
Surplus (Deficit) 1 907 ( 40) 3 597 3 637
Land management Revenues 6 168 7 047 7 842 795

Expenses (5 881) (7 067) (7 857) ( 790)
Surplus (Deficit) 287 ( 20) ( 15) 5
Parks and reserves Revenues 41 268 43 212 43 997 785

Expenses (40 336) (43 336) (43 847) ( 511)
Surplus (Deficit) 932 ( 124) 150 274
Climate change Revenues 0 43 797 48 474 4 677

Expenses 0 (43 923) (39 876) 4 047
Surplus (Deficit) 0 ( 126) 8 598 8 724
Total Outcome 1— Revenues 171 045 232 997 242 724 9 727
Departmental resourcing Expenses (165 467) (233 667) (232 022) 1 645
Surplus (Deficit) 5 578 ( 670) 10 702 11 372
237
Finances
Outcome 2—Departmental
2004 2005 2005 2005
$000's $000's $000's $000's

Influence in Antarctic Treaty System Revenues 14 424 13 739 15 782 2 043

Expenses (14 287) (13 739) (16 598) (2 859)
Surplus (Deficit) 137 0 ( 816) ( 816)
Protecting the Antarctic environment Revenues 36 794 34 431 40 305 5 874

Expenses (37 238) (34 431) (43 885) (9 454)
Surplus (Deficit) ( 444) 0 (3 580) (3 580)
Understanding global climate system Revenues 22 031 21 381 24 133 2 752

Expenses (21 832) (21 381) (25 391) (4 010)
Surplus (Deficit) 199 0 (1 258) (1 258)
Undertake scientific work of practical, Revenues 17 901 17 840 19 549 1 709

economic or national significance Expenses (17 733) (17 840) (20 639) (2 799)
Surplus (Deficit) 168 0 (1 090) (1 090)
Total Outcome 2— Revenues 91 150 87 391 99 769 12 378

Departmental resourcing Expenses (91 090) (87 391) (106 513) (19 122)
Surplus (Deficit) 60 0 (6 744) (6 744)
Staff years—Average Staffing Level (ASL)

2004 2005
Outcome 1 (1) 848.0 1 138.0

Outcome 2 390.0 375.0
Total 1 238.0 1 513.0

(1)
Staff seconded to the Director of National Parks (263.0 in 2005) are not included in departmental staff numbers.
The figure for 2005 includes staff from the Australian Greenhouse Office (170.0), National Oceans Office (43.0) and
the Department of Immigration and Multicultural and Indigenous Affairs (15.5).

Finances
Outcome 1—Administered
2005 2005 2005
Budget Actuals Variance
$000's $000's $000's
Outcome 1—Administered revenues

Environment management charge 7 400 7 400 0
Miscellaneous revenue 1 600 2 775 1 175
Wildlife protection—export/import fees 300 206 ( 94)
Fuel quality standards fees 30 32 2
Captains Flat loan—interest 13 5 ( 8)
Outcome 1—Total administered revenues 9 343 10 418 1 075
Outcome 1—Administered expenses
Grants in aid—National Trust ( 822) ( 822) 0

National Environment Protection Council (NEPC) Service Corporation ( 429) ( 429) 0
Australian Biological Resources Study participatory grants (1 827) (1 827) 0
Regional Natural Heritage Programme (4 779) (1 608) 3 171
Great Barrier Reef—Representative Areas Programme (49 125) (49 125) 0
Maintenance and Protection of Indigenous Heritage Programme (1 934) (1 737) 197
Acquisitions of leases and legal costs (9 850) (9 850) 0
Protecting Australia's biodiversity hotspots (11 000) (3 671) 7 329
Australian Government's Community Water Grants (1 000) (1 000) 0
Renewable Energy Equity Fund (3 165) ( 300) 2 865
Alternative Fuels Conversion Programme (2 796) (2 770) 26
Photovoltaic Rebate Programme ( 700) ( 8) 692
Renewable Energy Commercialisation Programme (3 721) (1 713) 2 008
Renewable Remote Power Generation Programme (2 372) (2 584) ( 212)
Greenhouse Gas Abatement Programme (15 137) (12 685) 2 452
Action on energy efficiency ( 750) ( 750) 0
Local greenhouse action ( 392) ( 390) 2
Greenhouse action to enhance sustainability in regional Australia (3 165) (3 078) 87
Low emissions technology and abatement (1 400) 0 1 400
Influencing international climate change policy (1 414) (1 164) 250
Climate Change Science Programme (6 000) (1 477) 4 523
Solar Cities ( 600) 0 600
Advanced electricity storage technologies ( 500) 0 500
Historic Hotels Restoration Programme (Doubtful debt expense) 0 ( 30) ( 30)
Outcome 1—Total administered expenses (122 878) (97 018) 25 860
239
Finances
Outcome 1—Administered continued ...

2005 2005 2005
Budget Actuals Variance
$000's $000's $000's
Outcome 1—Administered specific payments to the states and territories

Development of sewerage schemes for Boat Harbour and (1 000) ( 692) 308
Sisters Beach, Tasmania
Renewable Remote Power Generation Programme (22 887) (13 197) 9 690
Photovoltaic Rebate Programme (3 638) (3 529) 109
Strengthening Tasmania—Tamar River pylons ( 500) ( 500) 0
Strengthening Tasmania—Low Head precinct ( 50) ( 50) 0
Outcome 1—Total administered specific payments to the (28 075) (17 968) 10 107
states and territories
Outcome 1—Administered special accounts
Natural Heritage Trust Expenses (310 000) (307 609) 2 391
Ozone Protection and Synthetic Greenhouse Gas Account Expenses (2 870) (2 209) 661
Natural Cultural Heritage Account Expenses ( 185) ( 182) 3
Outcome 1—Total administered special accounts Expenses (313 055) (310 000) 3 055
Outcome 1—Total administered specific payments to Expenses (341 130) (327 968) 13 162
the states and territories, and special accounts

Finances
Outcome 1—Australian Greenhouse Office

The following table shows the full year budgets and expenses of Australian
Greenhouse Office programmes, including the period 1 July 2004 to 3 November
2004, after which the office ceased to have a separate financial status from the
Department of the Environment and Heritage. The revised budget shown in the
table as Budget B includes movement of administered funds agreed at the 2005

Budget which changed the year-by-year funding profile for some programmes
without affecting the overall existing allocation for all greenhouse programmes.
There was a subsequent, minor reallocation of the budgets of some programmes,
not shown in the table. This reallocation will appear in the 2005–06 portfolio
additional estimates statements.
Key to column headings
2005 Budget A The Australian Greenhouse Office’s original budget shown in the
2004–05 portfolio budget statements.
2005 Budget B The Australian Greenhouse Office’s revised budget shown in
the 2005–06 portfolio budget statements reflecting the movement of administered
funds and including revenue and expenses from 1 July 2004 to 3 November 2004.
2005 Actuals Actual revenues and expenses for 2004–05 covering the entire
period 1 July 2004 to 30 June 2005.
2005 Variance The difference between the revised Budget B and the actual results
for 2004–05, i.e. 2005 Actuals – 2005 Budget B.
241
Finances
2005 2005 2005 2005

Budget A Budget B Actuals Variance
$’000s $’000s $’000s $’000s
Climate change Revenue 44 719 54 318 55 861 1 543

Expenses (44 719) (54 444) (51 764) 2 680
Surplus (Deficit) 0 ( 126) 4 097 4 223
The original climate change budget (as per the 2004–05 portfolio budget statements) was adjusted by new measures
($4 399 million) and the effects of restructuring ($5 200 million) into the Department of the Environment and Heritage.
Outcome 1—Administered expenses
Renewable Energy Equity Fund (3 300) (3 300) ( 435) 2 865

Alternative Fuels Conversion Programme (2 799) (2 799) (2 796) 3
Photovoltaic Rebate Programme—Bill 1 ( 700) ( 200) ( 49) 151
Photovoltaic Rebate Programme—Bill 2 (4 900) (4 900) (5 065) ( 165)
Renewable Energy Commercialisation Programme (3 921) (2 021) (2 032) ( 11)
Renewable Remote Power Generation Programme—Bill 1 (2 638) (2 638) (2 850) ( 212)
Renewable Remote Power Generation Programme—Bill 2 (23 488) (19 188) (19 177) 11
Greenhouse Gas Abatement Programme (16 684) (13 387) (14 232) ( 845)
Action on energy efficiency ( 750) ( 750) ( 750) 0
Local greenhouse action ( 400) ( 400) ( 400) 0
Greenhouse action to enhance sustainability in regional Australia (3 165) (3 165) (3 088) 77
Low emissions technology and abatement (1 400) ( 400) 0 400
Influencing international climate change policy (1 700) (1 700) (1 681) 19
Climate change science programme (6 000) (6 000) (5 978) 22
Outcome 1—Total administered expenses (71 845) (60 848) (58 533) 2 315

Finances
Financial position
Assets
The written down value of assets administered on behalf of the Australian
Government in 2004–05 amounted to $419.737 million. This was an increase
($76.895 million) from the previous year. The increase was primarily due to the

transfer into the department of the net assets of the Australian Greenhouse Office
and the National Oceans Office, and the recognition of a receivable with the
Bureau of Meteorology.
Liabilities
Liabilities administered on behalf of the Australian Government in 2004–05
amounted to $105.304 million. This was an increase ($20.480 million) from the
previous year. The increase was due to an increase in amounts payable in grants
and to suppliers.
Total equity
The department concluded the year with total equity of $314.433 million, an
increase from the equity of $258.018 million in 2003–04:
Measurement 2003–04 2004–05
Assets $342.842 million $419.737 million

Liabilities $84.824 million $105.304 million
Total equity $258.018 million $314.433 million
Assets management
The department’s assets are located throughout Australia. The Australian Antarctic
Division is responsible for the main component of the department’s assets. Assets
are ageing and are perpetually putting pressure on funding streams for their
upkeep and replacement. The replacement of these unfunded assets is of particular
concern due to the impacts on cash reserves. Efforts are in progress to address
asset replacement issues by establishing a robust capital infrastructure plan.
Purchasing
The department’s purchasing and procurement activities were conducted in
accordance with the core principle of the Commonwealth Procurement Guidelines.
This principle is value for money. The principle is underpinned by encouraging
competition (including non-discrimination), efficiency, effectiveness, the ethical
use of resources, accountability and transparency.
243
Finances
Governance
The department’s procurement policies are available on its web site
(www.deh.gov.au/business). The department implements the Commonwealth
Procurement Guidelines through its Chief Executive Instructions. These
instructions are supported by the department’s procurement guidelines and
procedures.
The department’s procurement framework places responsibility for procurement
with the appropriate financial delegates. To support these delegates the
department provides awareness training, maintains relevant documentation,
provides central advice on risk management, probity, specification and writing,
and maintains standard tender and contract templates.
The department advertises tender opportunities through the AusTender web site.
Amendments to the guidelines

During the year the department reviewed its procurement guidelines and released
amended guidelines concurrently with the revised Commonwealth Procurement
Guidelines on 1 January 2005. The changes incorporated system developments that
enable reporting of environmental purchasing, and occupational health and safety
purchasing.
Small and medium enterprises

The department is committed to the Australian Government’s policy of supporting
small and medium enterprises, as was demonstrated by the department’s
14.4 per cent usage of the smaller airlines in 2004–05. The department’s Australian
Antarctic Division developed working relationships with small and medium
enterprises and notified them of business opportunities in regional areas of Tasmania.
Procurement benchmarks
The department’s procurement benchmarks during 2004–05 were as follows:
Benchmark Procurement method
Up to $1 999 Quotes are not required (but may be advisable if it is believed there is a possible
material disparity between suppliers)
$2 000–$4 999 Obtain at least three competitive verbal quotes
$5 000–$79 999 Obtain at least three competitive written quotes
$80 000+ Covered procurement (or open competition), subject to the Commonwealth
Mandatory Procurement Procedures, unless specifically exempt

Finances
Procurement Review Board

The Procurement Review Board is a committee within the department responsible
for the oversight of procurement. The Procurement Review Board ensures that
all aspects of the Commonwealth Procurement Guidelines and the department’s
procurement requirements are adequately met.

All purchases valued over $80 000 are subject to review by the Procurement
Review Board. Decision-makers also refer any purchases below this threshold
that are considered to be particularly complex or controversial to the Procurement
Review Board.
The threshold was revised down from $100 000 following the introduction of the
Commonwealth Procurement Guidelines on 1 January 2005.
During the year the department’s Procurement Review Board examined
27 submissions for contracts over $100 000 up to 31 December 2004, and a further
95 submissions for contracts over $80 000 from 1 January 2005. The increase in
submissions in the second half of the financial year was due mainly to the lowering
of the open procurement threshold as a result of the Commonwealth Procurement
Guidelines, and an increase in the department’s procurement activities due to the
independent financial status of the Australian Greenhouse Office and National
Oceans Office ending on 3 November 2004 (see footnote, page 8).
Reporting
The department met the requirement to report to the Department of Finance and
Administration on projects requiring Regulation 10 authorisation.
The requirement to report on the Senate Order on Government Agency contracts
for the two cycles, financial year and calendar year, was met. All contracts over
$100 000 are listed at www.deh.gov.au/about/contracts.

The department’s procurement policies are consistent with the requirements of the
Disability Discrimination Act 1992. The department has complaints and grievance
mechanisms in place. As noted elsewhere in this annual report, the department will
implement an action plan on disability in 2005–06.
245
Finances
Consultancy services 1
As with its policy on general purchasing activities, the department’s policy on
the selection and engagement of consultants is based on the principles in the
Commonwealth Procurement Guidelines, the department’s Chief Executive’s
Instructions and the department’s procurement guidelines.
Selection methods are outlined in the department’s procurement guidelines, in line

with the department’s procurement benchmarks.
The departmental internal audit team conducts periodic probity reviews to help
ensure compliance with the general probity principles of the Commonwealth
Procurement Guidelines and the Chief Executive Instructions.
Expenditure on consultancies during 2004–05

During 2004–05 the department entered into 521 new consultancy contracts
involving total actual expenditure of $25.456 million. In addition 173 ongoing
consultancy contracts were active, involving total actual expenditure of
$7.463 million (see table below). The consultants were engaged for specialist
policy advice, professional skills, and research and development studies.
Type Number Expenditure
New contracts let during the year 521 $25.456 million

Ongoing contracts that were active during the year 173 $7.463 million
Total 694 $32.919 million
The total value of contracts let during 2004–05 was $42.308 million with $25.456
million expensed in 2004–05.
A list of all consultancy contracts let to the value of $10 000 or more (inclusive of
GST) is available at www.deh.gov.au/about/annual-report/04-05.
Competitive tendering and contracting 2

During 2004–05 the department continued to source its internal audit and
information technology support service delivery from external providers.
1
The definition of ‘consultant’ used by the department is the definition in the Requirements for Annual Reports
published on the web site of the Department of the Prime Minister and Cabinet at
www.dpmc.gov.au/guidelines/index.cfm.
2
For the purposes of departmental annual reports competitive tendering and contracting means the process of
contracting out the delivery of government activities that were previously performed by the department to another
organisation.

Finances
Exempt contracts
During 2004–05 there were no standing offers or contracts in excess of $2 000
(inclusive of GST) exempted by the chief executive from being published in the
Purchasing and Disposal Gazette under the Freedom of Information Act 1982.
The Commonwealth Procurement Guidelines revised the threshold for the gazettal

requirement to $10 000 (GST inclusive) from 1 January 2005.
Advertising and market research

This section is presented in accordance with the requirements of section 311A of
the Commonwealth Electoral Act 1918.
Type of expense 2004–05 expenses
Market research
Artcraft Research $20 216.25

Horizon Communication $64 733.18
Millward Brown Australia $88 654.00
Open Mind Research Group $539 544.68
Sub-total—market research $713 148.11
Advertising
Creative
Avant Cards $7 862.50
Zoo Communications $33 145.45
Singleton Ogilvy and Mather $137 656.09
KWP Pty Ltd $280 000.00
Media buy
Attorney General’s Department $52 433.99
Universal McCann $468 507.17
HMA Blaze $976 867.17
Osborn Southgate $4 746.63
Sub-total—advertising $1 961 219.00
Direct mail
Canberra Mailing $147 459.47

Sub-total—direct mail $147 459.47
Total $2 821 826.58
247
Finances
Discretionary grants programmes

The department administers a range of discretionary grant programmes.
Programmes for which grants were approved in 2004–05 are listed below.
Discretionary grants are payments made to particular applicants, either
organisations or individuals, at the discretion of the portfolio minister or the
paying agency. Conditions may or may not be imposed in return for the grant.
Discretionary grants may be single ad hoc payments, or grants renewed under
continuing programmes.
The definition of discretionary grants includes programme grants as well as ad hoc
and one-off payments but excludes:
• service agreements, which are treated as contracts rather than grants
• intra-Australian Government agency funding
• payments to states and other government agencies (specific purpose payments)
and inter-government transfers
• payments to overseas aid organisations
• government income support programmes
• emergency payment programmes
• grants under commercial industry development programmes (including to
increase research and development, and assist exporters)
• grant programmes specifically for educational institutions and medical research
institutions
• grants approved by Australian Government bodies outside the general
government sector, for example, public non-financial corporations like Australia
Post and Telstra
• payments of a specific sum of money or a fixed percentage of shared funding to
an organisation or individual that are made according to a Cabinet decision, a
letter from the Prime Minister, or a determination of a ministerial council.
A full list of grant recipients is available on request from the department.
Climate change
Alternative Fuels Conversion Programme: Assists operators and manufacturers
of heavy commercial vehicles and buses to convert to compressed natural gas
(CNG) or liquefied petroleum gas (LPG).
Influencing International Climate Change Policy: Provides specialist advice
on international climate change arrangements and on building the capacity of key
developing countries to take effective climate change action through bi-lateral
partnerships.

Finances
National Climate Change Adaptation Programme: Provides national

leadership and coordination on assessment of climate change impacts, and enables
risks to be managed and opportunities to be captured through effective adaptation.
Air pollution
Diesel National Environmental Protection Measures: Supports the

development and implementation of in-service emissions testing capabilities for
petrol and diesel vehicles, where diesel emission testing is in conjunction with
the making or implementation of the National Environmental Protection (Diesel
Vehicle Emissions) Measure.
Sustainable Cities Programme: Develops national standards, increases
compliance and enforcement activities and gives priority to national initiatives in
areas such as air quality, fuel quality, ozone depleting substances and renewable
energy. See also ‘Human settlements and industry’ below.
Biodiversity
Bushcare Programme: Aims to reverse the long-term decline in the quality and
extent of Australia’s native vegetation cover. Part of the Natural Heritage Trust.
Endangered Species Programme: Aims to protect and conserve Australia’s
nationally threatened species and ecological communities in the wild. Part of the
Natural Heritage Trust.
National Threat Abatement Programme: Supports implementation of national
threat abatement plans. Part of the Natural Heritage Trust.
National Weeds Management: Aims to reduce the detrimental impact of
nationally significant weeds on the sustainability of Australia’s productive capacity
and natural ecosystems. Part of the Natural Heritage Trust.
Coasts and oceans

Coastal Catchments Initiative: Aims to support planning to maintain
ecologically sustainable pollutant loads consistent with agreed environmental
values for coastal waters. Part of the Natural Heritage Trust.
Facilitation of Community Involvement in Marine Issues and Decision-
Making: Enhances community involvement in marine issues and decision-making
by raising community awareness and facilitating communication. Part of the
Introduced Marine Pests Programme: Supports scientific research and
development of better management arrangements that will improve the prevention
and control of introduced marine pest species nationally, in a comprehensive
National System for the Prevention and Management of Marine Pest Incursions.
Part of the Natural Heritage Trust.
249
Finances
Marine Protected Areas: Facilitates the establishment of the National

Representative System of Marine Protected Areas in Commonwealth waters and the
effective management of existing reserves. Part of the Natural Heritage Trust.
Marine Protected Areas Structural Adjustment: Assists fishers and, where
required, fishery-related businesses and local communities in adjusting to the
declaration of new marine protected areas.
National—Coastcare: Invests in activities that will contribute to protecting

Australia’s coastal catchments, ecosystems and the marine environment. Part of the
Queensland Wetlands Programme: Aims to develop and implement measures for
the long-term conservation and management of wetlands in the Great Barrier Reef
catchment as per the strategies contained in the Reef Water Quality Protection Plan.
Reef Water Quality Protection Plan: Supports implementation of the Great
Barrier Reef Water Quality Protection Plan. Partly funded under the Natural
Heritage Trust.

Assessments and Legislation Programme: Promotes and facilitates community
awareness of the Environment Protection and Biodiversity Conservation Act 1999,
and assists community environmental organisations in understanding the Act. Part
Better Science for Our Decision-Making: Provides scientific support to ensure
best practice implementation of the Australian Government’s Environment
Protection and Biodiversity Conservation Act 1999 obligations. Part of the Natural
Heritage Trust.
Heritage
Asia–Pacific Focal Point for World Heritage Managers: Promotes the World
Heritage Convention in Australia’s region by supporting capacity building,
planning, regional networking and transfer of expertise, awareness raising, and
best practice management of world heritage values.
Commemoration of Historic Events and Famous Persons Programme:
Commemorates people, events and places of national historical significance
including by caring for the graves of former Australian prime ministers
and supporting other projects of national significance such as exhibitions,
commemorative monuments and surveys of historical sites.
Cultural Heritage Projects Programme: Supports the conservation of historic
places on the Register of the National Estate, its interim list or state heritage

Finances
registers. Projects that aim to identify Indigenous heritage places for appropriate
listing or conservation planning may also be supported.
Historic Shipwrecks Programme: Implements the Historic Shipwrecks Act 1976
and ensures the protection of maritime archaeological sites while encouraging
responsible public access.

Maintaining Biodiversity Hotspots: Implements the Daintree Conservation
Initiative and assists in the conservation of the cassowary.
Regional Natural Heritage Programme: Supports non-government
organisations and other relevant agencies that undertake projects to protect
outstanding biodiversity in hotspot areas of South East Asia and the Pacific,
complementing work being carried out through the Asia Pacific Focal Point for
World Heritage Managers to help implement the World Heritage Convention in the
Australian region.
Sharing Australia’s Stories: Supports creative projects that show how local
stories have contributed to the great events and themes that have shaped our
nation. Projects must contribute to an understanding of themes of national
significance.

Environment Protection Ad hoc Grants: Provides funding to organisations to
protect Australia’s environment through national leadership and cooperation.
Oil Recycling: Part of the product stewardship arrangements for waste oil,
providing targeted grants to address barriers to oil recycling.
Sustainable Cities Programme: Develops national standards, increases
compliance and enforcement activities and gives priority to national initiatives in
areas such as the management and control of chemicals, pollutants, hazardous
waste, water quality, environmental information and education, and waste
management. See also ‘Air pollution’ above.
Inland waters
Australian Government’s Community Water Grants Programme:
A community-focused component of the Australian Government Water Fund,
supporting community organisations, local governments, schools, businesses and
natural resource management regional bodies for on-ground water savings and
water quality improvements.
Inland Water Management: Assists in protecting and conserving Australia’s
inland waters. Partly funded under the Natural Heritage Trust.
251
Finances
National Wetlands: Contributes to the ecologically sustainable management of

Australia’s inland waters through funding projects that will help to restore and
protect the ecological health of wetlands. Part of the Natural Heritage Trust.
Water and River Management: Provides support for river health and water
management in Australia and overseas. Part of the Natural Heritage Trust.
Land
National—Landcare: Supports activities that have a national or broad scale,
rather than a regional or local outcome, including innovative national projects that
most effectively improve regional natural resource management delivery. Part of
the Natural Heritage Trust.
Parks and reserves

Indigenous Protected Areas Programme: Supports the establishment and
management of protected areas on Indigenous-owned estates and establish joint
management arrangements for government-owned protected areas between
Indigenous groups and the relevant government nature conservation agencies. Part
National Reserve System Programme: Assists with the establishment and
maintenance of a comprehensive, adequate and representative system of protected
area reserves in Australia. Part of the Natural Heritage Trust.

Ad Hoc Environmental Meetings: Payments allow delegates from Papua New
Guinea to travel to Australia and attend environmental meetings.
Envirofund: The community-focused component of the Natural Heritage Trust.
Provides grants for on-ground activities targeting local government problems,
including water quality, protecting native vegetation, salinity and coastal erosion.
Environment Australia’s sponsorship of the Peter Hunt Eureka Prize for
Environmental Journalism, 2004: The prize is awarded for a particular work, or
for overall performance in the field of environmental journalism. Special emphasis
is given to work that informs and influences public opinion and attitudes, and that
recognises and promotes the principles of ecologically sustainable development.
Environmental Education Grants Programme: Supports strategic
environmental education activities that promote a coherent national approach to
improving the community’s capacity to protect the environment.

Finances
Environmental International Obligations: Aims to protect the environment of

Australia through national leadership and by contributing to international policy
development.
Grants to Voluntary Environment and Heritage Organisations: Provides
administrative funds to help community based environment and heritage
organisations to conserve and protect the natural environment and cultural

heritage.
Antarctica
Australian Antarctic Science Grants: Provides grants for high quality scientific
research relevant to the goals of the government’s Antarctic programme.
253
Finances

Financial statements
This chapter provides the department’s audited financial statements for 2004–05
and the associated Auditor-General’s report, as required under section 57 of the
Financial Management and Accountability Act 1997.

257

259
DEPARTMENT OF THE ENVIRONMENT AND HERITAGE

STATEMENT OF FINANCIAL PERFORMANCE
for the year ended 30 June 2005
2005 2004
Notes $'000 $'000
Revenues from ordinary activities

Revenues from Government 4.1 295,239 224,387
Goods and services 4.2 45,352 33,760
Interest 4.3 1 0
Revenue from sale of assets 4.4 248 20
Reversal of previous asset write-downs 4.5 11 8
Other revenues 4.6 1,642 4,020
Revenues from ordinary activities 342,493 262,195
Expenses from ordinary activities (excluding borrowing

costs expense)
Employees 5.1 122,358 97,744
Suppliers 5.2 126,282 87,424
Grants 5.3 19,595 12,184
Transfer funding 5.3 40,085 35,552
Depreciation and amortisation 5.4 23,151 21,752
Write-down and impairment of assets 5.5 6,243 1,131
Value of assets sold 4.4 654 444
Other expenses 5.6 10 93
Expenses from ordinary activities (excluding borrowing costs
expense) 338,378 256,324
Borrowing costs expense 6 157 233
Net surplus from ordinary activities 3,958 5,638
Net credit to asset revaluation reserve 12.1 8,577 0
Total revenues, expenses and valuation adjustments

recognised directly in equity 8,577 0
Total changes in equity other than those resulting from

transactions with the Australian Government as owner 12,535 5,638
The above Statement should be read in conjunction with the accompanying notes.


STATEMENT OF FINANCIAL POSITION
as at 30 June 2005
2005 2004
Notes $'000 $'000
ASSETS
Financial assets
Cash 7.1 3,879 6,928
Receivables 7.2 91,665 13,952
Accrued revenues 7.3 10,196 2,823
Other financial assets 0 23
Total financial assets 105,740 23,726
Non-financial assets
Land and buildings 8.1/8.4 190,029 199,393
Infrastructure, plant and equipment 8.2/8.4 100,702 102,396
Intangibles 8.3/8.4 10,795 7,580
Inventories 8.5 10,724 9,101
Other non-financial assets 8.6 1,747 646
Total non-financial assets 313,997 319,116
Total Assets 419,737 342,842
LIABILITIES
Interest bearing liabilities
Loans 9.1 3,065 3,974
Other interest bearing liabilities 9.2 601 704
Total interest bearing liabilities 3,666 4,678
Provisions
Employees 10.1 37,087 33,976
Other provisions 10.2 35,017 37,040
Total provisions 72,104 71,016
Payables
Suppliers 11.1 22,524 6,452
Grants 11.2 5,029 767
Other payables 11.3 1,981 1,911
Total payables 29,534 9,130
Total Liabilities 105,304 84,824
NET ASSETS 314,433 258,018
EQUITY
Contributed equity 12.1 49,901 6,021
Reserves 12.1 138,092 129,515
Retained accumulated surplus 12.1 126,440 122,482
TOTAL EQUITY 314,433 258,018
Current assets 114,107 30,037

Non-current assets 305,630 312,805
Current liabilities 42,854 26,637
Non-current liabilities 62,450 58,187
261

STATEMENT OF CASH FLOWS
2005 2004
Notes $'000 $'000
OPERATING ACTIVITIES
Cash received
Appropriations 265,641 224,694
Goods and services 40,881 35,369
Interest 1 0
GST received from the ATO 10,504 8,844
Other cash received from operating activities 1,138 3,860
Cash transferred from the OPA 0 9,252
Total cash received 318,165 282,019
Cash used
Employees 122,296 96,910
Suppliers 134,354 101,256
Grants 16,794 13,368
Transfer funding 40,085 35,552
Borrowing costs 233 242
GST paid to the ATO 499 4,628
Total cash used 314,261 251,956
Net cash from operating activities 13 3,904 30,063
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment 248 20
Total cash received 248 20
Cash used
Purchase of property, plant and equipment 7,747 15,728
Purchase of intangibles 3,030 3,032
Net cash used by investing activities (10,529) (18,740)
FINANCING ACTIVITIES
Cash received
Other cash received for financing activities 4,588 0
Total cash received 4,588 0
Cash used
Repayment of debt 1,012 960
Other cash used for financing activities 0 7,684
Net cash from or (used by) financing activities 3,576 (8,644)
Net increase or (decrease) in cash held (3,049) 2,679

Cash at the beginning of the reporting period 6,928 4,249
Cash at the end of the reporting period 7.1 3,879 6,928


SCHEDULE OF COMMITMENTS
as at 30 June 2005
2005 2004
$'000 $'000
BY TYPE
Capital commitments (1)
Land and buildings 0 6
Infrastructure, plant and equipment 248 275
Intangibles 739 628
Total capital commitments 987 909
Other commitments
Operating leases (2) 150,486 183,341
Project commitments (3) 16,862 11,749
Other commitments (4) 17,727 3,848
Total other commitments 185,075 198,938
Commitments receivable 16,758 18,339
Net commitments by type 169,304 181,508
BY MATURITY
Capital commitments
One year or less 987 909
Total capital commitments by maturity 987 909
Operating lease commitments

One year or less 23,148 35,999
From one to five years 84,615 97,564
Over five years 42,723 49,778
Total operating lease commitments by maturity 150,486 183,341
Project commitments
Total project commitments by maturity 16,862 11,749
Other commitments
From one to five years 4,877 202
Total other commitments by maturity 17,727 3,848
Net commitments by maturity 169,304 181,508
263

SCHEDULE OF COMMITMENTS (continued)
as at 30 June 2005
(1) Capital commitments relate to contractual payments for new assets and assets under
construction.
(2) Operating leases are effectively non-cancelable and include:
Nature of lease General description of leasing arrangements
Leases for office * Lease payments are subject to increases in accordance with
accommodation terms as negotiated under the lease.
* The Department's leases for office accommodation each have
options for renewal. Future options not yet exercised are not
included as commitments.
Leases for transportation * Lease payments are subject to increases in accordance with
to and within the terms as negotiated under the lease.
Antarctic Territory * The transportation leases generally have options for renewal.
Future options not yet exercised are not included as
commitments.
Leases for support * Lease payments are subject to increases in accordance with
facilities for Antarctic terms as negotiated under the lease.
operations * The facility leases each have options for renewal. Future options
not yet exercised are not included as commitments.
Lease of computer * The lessor provides all computer equipment and software
equipment designated as necessary in the supply contract for five years plus
for two further two year periods at the Department's option. The
Department is currently within the first two year extention of the
lease.
* The equipment has on average a useful life of three years.
(3) Project commitments relate to grant amounts payable under agreements in respect of
which the grantee has yet to complete the milestone required under the agreement.
(4) Other commitments relate to contracts for goods and services in respect of which the
contracted party has yet to provide the goods and services required under the contract.
Note: All commitments are GST inclusive where relevant.
The above Schedule should be read in conjunction with the accompanying notes.


SCHEDULE OF ADMINISTERED ITEMS
2005 2004
Notes $'000 $'000
Revenues Administered on behalf of Government

Taxation revenue
Other taxes, fees and fines 19 1,480 140
Non-taxation revenue
Revenue from government 19 65 42
Goods and services 19 1,987 2,560
Interest 19 9 6
Industry contributions 19 7,400 7,000
Grant repayments 19 1,406 993
Assets recognised for the first time 19 2,113 67
Other sources of non-taxation revenue 19 424 244
Total non-taxation revenue 13,404 10,912
Total Revenues Administered on behalf of Government 14,884 11,052
Expenses Administered on behalf of Government

Grants 20 337,418 220,168

Suppliers 20 54,147 46,311
Write-down and impairment of assets 20 32,840 124
Other expenses administered on behalf of Government 20 581 938
Total Expenses Administered on behalf of Government 424,986 267,541
265

SCHEDULE OF ADMINISTERED ITEMS (continued)
2005 2004
Notes $'000 $'000
Assets Administered on behalf of Government

as at 30 June 2005
Financial assets
Cash 21 435 1
Receivables 21 6,709 6,812
Investments 21 134,801 118,301
Accrued revenues 21 1,562 441
Land and buildings 21 4,750 4,750
Infrastructure, plant and equipment 21 1,271 1,271
Inventories 21 571 392
Other non-financial assets 21 2,899 74
Total Assets Administered on behalf of Government 152,998 132,042
Liabilities Administered on behalf of Government

as at 30 June 2005
Interest Bearing Liabilities

Overdraft 22 0 341
Payables
Suppliers 22 4,536 3,027
Grants 22 53,391 32,720
Other payables 22 5,769 7,343
Total Liabilities Administered on behalf of Government 63,696 43,431
Net Assets Administered on behalf of Government 23 89,302 88,611



2005 2004
Notes $'000 $'000
Administered Cash Flows

Cash received
Rendering of services 2,352 2,617
Interest 10 9
GST received from ATO 21,104 8,237
Other cash received from operating activities 9,172 7,391
Cash used
Suppliers 59,383 49,911
Grant payments 339,793 200,621
GST paid to ATO 4,736 1,240
Other cash used by operating activities 581 73
Net cash used in operating activities (371,855) (233,591)
Cash received
Repayment of advances 3,020 6
Total cash received 3,020 6
Cash used
Purchase of property, plant and equipment 32,238 0
Total cash used 32,238 0
Net cash from (used by) investing activities (29,218) 6
Net decrease in cash held (401,073) (233,585)

Cash at beginning of reporting period (340) 1
Cash from Official Public Account for:
- Appropriations (including GST appropriation) 129,964 16,882
- Special Accounts 309,859 227,551
439,823 244,433
Cash to the Official Public Account for:
- Appropriations (including return of GST appropriation) (32,733) (9,720)
- Special Accounts (5,242) (1,469)
(37,975) (11,189)
Cash at end of reporting period 21 435 (340)
267

2005 2004
Notes $'000 $'000
Administered Commitments
as at 30 June 2005
BY TYPE
Other commitments
Project commitments (1) 302,310 46,773
Program commitments (2) 15,150 7,842
Net administered commitments 300,747 51,251

BY MATURITY
Other commitments
Total other commitments by maturity 317,460 54,615
(1) Project commitments relate to grant amounts payable under agreements in respect of
which the grantee has yet to complete the milestone required under the agreement.
(2) Program commitments relate to contracts for goods and services in respect of which the
contracted party has yet to provide the goods and services required under the contract.
Note: All commitments are GST inclusive where relevant.

Statement of Activities Administered on Behalf of Government

The major administered activities of the Department are directed towards achieving the outcomes
described in Note 1 to the Financial Statements. The major financial activities are as follows:
. provide participatory grants to support the Australian Biological Resources Study;
. contribute to the development of sewerage schemes for Boat Harbour and Sisters Beach;
. provide financial assistance (from the Natural Heritage Trust of Australia Account) to conserve,
repair and replenish Australia's natural capital infrastructure with a focus on specific objectives
of Biodiversity Conservation, Sustainable Use of Natural Resources, and Community Capacity
Building and Institutional Change.
. provide funds to assist eligible commercial fishers and others adversely affected by the
implementation of the Representative Areas Program for the Great Barrier Reef which came
into effect from 1 July 2004.
. fund biodiversity stewardship and private land purchases as a means of conserving and
protecting native vegetation and endangered species.
. fund scientific research to better understand and predict how future changes in Australia's
climate will impact on the environment, communities and industry.
. provide funding to foster the development of innovative low emissions technologies.
Details of planned activities for the year can be found in the Department's Portfolio Budget and
Portfolio Additional Estimates Statements for 2004-05 which have been tabled in the Parliament.
This Schedule should be read in conjunction with the accompanying notes.
269

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
Note Description
1 Summary of Significant Accounting Policies
2 Adoption of Australian Equivalents to International Financial Reporting
Standards from 2005-2006
3 Events Occurring after Reporting Date
4 Operating Revenues
5 Operating Expenses
6 Borrowing Cost Expenses
7 Financial Assets
8 Non-financial Assets
9 Interest Bearing Liabilities
10 Provisions
11 Payables
12 Equity
13 Cash Flow Reconciliation
14 Contingent Liabilities and Assets
15 Executive Remuneration
16 Remuneration of Auditors
17 Average Staffing Levels
18 Financial Instruments
19 Revenues Administered on Behalf of Government
20 Expenses Administered on Behalf of Government
21 Assets Administered on Behalf of Government
22 Liabilities Administered on Behalf of Government
23 Administered Reconciliation Table
24 Administered Contingent Liabilities and Assets
25 Administered Investments
26 Administered Restructuring
27 Administered Financial Instruments
28 Appropriations
29 Specific Payment Disclosures
30 Reporting of Outcomes

1.1 Objectives of the Department
The objectives of the Department are to:

. advise on and implement policies and programs for the protection and conservation of the
environment while ensuring its use is ecologically sustainable; and
. administer the Australian Antarctic Territory and the Territory of Heard and McDonald Islands,
enhance Australia's role in the Antarctic Treaty System, conduct and support strategic research,
and protect the Antarctic environment.
The Department is structured to meet two outcomes.
Outcome 1
. The environment, especially those aspects that are matters of national environmental
significance, is protected and conserved.
Outcome 2
. Australia's interests in Antarctica are advanced.
The following provides a representation of the individual outputs under each of the 2 outcomes.
Outcome 1
. 1.1 Atmosphere
. 1.2 Biodiversity
. 1.3 Coasts and Oceans
. 1.4 Environmental Assessments and Approvals
. 1.5 Heritage
. 1.6 Human Settlements
. 1.7 Inland Waters
. 1.8 Land Management
. 1.9 Parks and Reserves
. 1.10 Climate Change
Outcome 2
. 2.1 Influence in Antarctic Treaty System
. 2.2 Protection of Antarctic Environment
. 2.3 Understanding Global Climate System
. 2.4 Science of practical, economic or national significance
271
1.2 Basis of Accounting
The financial statements are required by section 49 of the Financial Management and
Accountability Act 1997 and are a general purpose financial report. The financial statements
have been prepared in accordance with:
. Finance Minister's Orders (being the Financial Management and Accountability Orders
(Financial Statements for reporting periods ending on or after 30 June 2005 ));
. Australian Accounting Standards and Accounting Interpretations issued by the Australian
Accounting Standards Board; and
. Consensus Views of the Urgent Issues Group.
The financial statements have also been prepared having regard to the Explanatory Notes to
Schedule 1 of the Finance Minister's Orders and Finance Briefs issued by the Department of
Finance and Administration.
The Statements of Financial Performance and Financial Position have been prepared on an accrual
basis and are in accordance with the historical cost convention, except for certain assets, which, as
noted, are at valuation. Except where stated, no allowance is made for the effect of changing
prices on the results or the financial position.
Assets and liabilities are recognised in the Statement of Financial Position when and only when it
is probable that the future economic benefits will flow and the amounts of the assets and liabilities
can be reliably measured. However, assets and liabilities arising under agreements equally
proportionately unperformed are not recognised unless required by an Accounting Standard.
Assets and liabilities that are unrecognised are reported in the Schedule of Commitments and
the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are
reported at Note 14).
Revenues and expenses are recognised in the Statement of Financial Performance when and only
when the flow or consumption or loss of economic benefits has occurred and can be reliably
measured.
The continued existence of the Department in its present form, and with its present programs, is
dependent on Government policy and on continuing appropriations by Parliament for the
Department's administration and programs.
Administered revenues, expenses, assets, liabilities and cash flows reported in the Schedule of
Administered Items and related Notes are accounted for on the same basis and using the same
policies as for agency items, except where otherwise stated at Note 1.21.

1.3 Changes in Accounting Policy
The accounting policies used in the preparation of these financial statements are consistent with
those used in 2003-2004.
In 2003-2004, the impairment test provisions of the Finance Minister's Orders were extended
to cover non-current assets carried at deprival values. There were no indications of impairment for
these assets in 2004-2005.
1.4 Agency and Administered Items
Activities of the Department are classified as either agency or administered. Agency activities
involve the use of assets, liabilities, revenues and expenses controlled or incurred by the
Department in its own right. Administered activities involve the management or oversight by the
Department on behalf of the Government of items controlled or incurred by the Government.
The purpose of the separation of agency and administered items is to enable the assessment
of administrative efficiency of the Department in providing goods and services.
1.5 Principles of Consolidation (Natural Heritage Trust of Australia Account)
Subsection 43(1) of the Natural Heritage Trust of Australia Act 1997 requires financial
statements to be prepared for the Natural Heritage Trust of Australia Account (NHT). Reporting
by the NHT reflects the NHT as a separate reporting entity, with all transactions between the NHT
and parties outside the NHT being reported.
Reporting of the NHT as part of the Department's administered disclosure in these financial
statements takes account of the treatment of administered items as a whole. Under the
administered presentation rules (Schedule 1 of the Finance Minister's Orders) administered
disclosures do not include amounts available to entities for administered purposes but which are
not held in the Department's administered bank account.
The financial statements of the NHT are consolidated into the Department's financial statements.
Where accounting policies and disclosure requirements differ between the NHT and the
Department adjustments are made on consolidation to bring any dissimilar accounting policies
and disclosures into alignment.
1.6 Revenue
(a) Revenues from Government
Departmental outputs appropriations for the year (less any current year savings and reductions)
are recognised as revenue, except for certain amounts that relate to activities that are reciprocal
in nature, in which case revenue is recognised only when it has been earned.
Appropriations receivable are recognised at their nominal amounts.
273
(b) Resources Received Free of Charge
Services received free of charge are recognised as revenue when and only when a fair value can
be reliably determined and the services would have been purchased if they had not been donated.
Use of those resources is recognised as an expense.
Contributions of assets at no cost of acquisition are recognised at their fair value when the asset
qualifies for recognition, unless received from another Government agency as a consequence of a
restructuring of administrative arrangements - refer to Note 1.7(b).
(c) Other Revenue
Revenue from the sale of goods is recognised upon delivery of goods to customers.
Revenue from the rendering of a service is recognised by reference to the stage of completion
of contracts or other agreements to provide services. The stage of completion is determined
according to the proportion that costs incurred to date bear to the estimated total costs of the
transaction.
Receivables for goods and services are recognised at the nominal amounts due less any provision
for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are
made when collectability of the debt is judged to be less rather than more likely.
Interest revenue is recognised on a time proportional basis taking into account the effective yield
on the relevant financial asset.
Revenue from disposal of non-current assets is recognised when control of the asset has passed
to the buyer.
1.7 Transactions with the Government as Owner
(a) Equity Injections
Amounts of appropriations designated as "equity injections" for a year (less any savings offered up
in Portfolio Additional Estimates Statements) are recognised directly in Contributed Equity in that
year.
(b) Restructuring of Administrative Arrangements
Net assets received from or relinquished to another Commonwealth agency or authority under a
restructuring of administrative arrangements are adjusted at their book value directly against
contributed equity (refer Notes 12.2 and 26).

1.8 Employee Benefits
Liabilities for services rendered by employees are recognised at the reporting date to the extent
that they have not been settled.
Liabilities for wages and salaries (including non-monetary benefits), annual leave, long service leave
to be taken within 12 months of the reporting date and sick leave are measured at their nominal
amounts. Other employee benefits expected to be settled within 12 months of the reporting date are
also measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the
liability.
All other employee benefit liabilities are measured as the present value of the estimated future cash
outflows to be made in respect of services provided by employees up to the reporting date.
(a) Leave
The liability for employees entitlements includes provision for annual leave, long service leave and
the superannuation on-cost related to leave. No provision has been made for sick leave as all
sick leave is non vesting and the average sick leave taken in future years by employees
of the Department is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees remuneration, including the
Department's employer superannuation contribution rates to the extent that the leave is likely to be
taken during service rather than paid out on termination.
The liability for long service leave has been determined by reference to the work of an actuary as
at 28 February 2005. The actuary recommended that a further actuarial assessment be
undertaken in 3 years. The estimate of the present value of the non-current liability takes into
account attrition rates and pay increases through promotion and inflation.
(b) Separation and Redundancy
Provision is made for separation and redundancy payments in circumstances where the
Department has invited an excess employee to accept voluntary redundancy, the employee has
accepted the offer, and a reliable estimate of the amount of the payments can be determined.
(c) Superannuation
Staff of the Department are members of the Commonwealth Superannuation Scheme, the Public
Sector Superannuation Scheme and Australian Government Employees Superannuation Trust.
The liability for their superannuation benefits is recognised in the financial statements of the
Australian Government and is settled by the Australian Government in due course.
275
The Department makes employer contributions to the Australian Government at rates determined
by an actuary to be sufficient to meet the cost to the Government of the superannuation entitlements
of the Department's employees.
The liability for superannuation recognised as at 30 June represent outstanding contributions for
the final fortnight of the year.
1.9 Leases
A distinction is made between finance leases, which effectively transfer from the lessor to the
lessee substantially all the risks and benefits incidental to ownership of leased non-current assets
and operating leases, under which the lessor effectively retains substantially all such risks and
benefits.
Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the
present value of minimum lease payments at the inception of the lease and a liability recognised
for the same amount. Leased assets are amortised over the period of the lease. Lease payments
are allocated between the principal component and the interest expense.
Operating lease payments are expensed on a basis which is representative of the pattern of
benefits derived from the leased assets.
A lease incentive taking the form of a rent holiday is recognised as a liability. This liability is
reduced by allocating lease payments between rental expense and reduction of the liability.
1.10 Grants
The Department administers a number of diverse grant schemes.
Grant liabilities are recognised to the extent that (i) the services required to be performed by the
grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments
due have not been made. A commitment is recorded when the Department enters into an
agreement to make grants but services have not been performed or criteria satisfied.
1.11 Borrowing Cost
All borrowing costs are expensed as incurred.
1.12 Cash
Cash means notes, coins and cheques held by the Department and others under agency
arrangements, and any deposits held at call with a bank or financial institution. Cash is recognised
at its nominal amount.

1.13 Other Financial Instruments
(a) Loans
Government loans are carried at the balance yet to be repaid. Interest is expensed as it accrues
unless it is directly attributable to a qualifying asset.
(b) Trade Creditors
Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which
liabilities will be settled. Liabilities are recognised to the extent that the goods or services have
been received (and irrespective of having been invoiced).
(c) Contingent Liabilities and Contingent Assets
Contingent liabilities and assets are not recognised in the Statement of Financial Position but are
discussed in the relevant schedules and notes. They may arise from uncertainty as to the existence
of a liability or asset, or represent an existing liability or asset in respect of which settlement is not
probable or the amount cannot be reliably measured. Remote contingencies are part of this
disclosure. Where settlement becomes probable, a liability or asset is recognised. A liability or
asset is recognised when its existence is confirmed by a future event, settlement becomes probable
or reliable measurement becomes possible.
1.14 Property, plant and equipment
(a) Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition
includes the fair value of assets transferred in exchange and liabilities undertaken.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and
revenues at their fair value at the date of acquisition, unless acquired as a consequence of
restructuring of administrative arrangements. In the latter case, assets are initially recognised as
contributions by owners at the amounts at which they were recognised in the transferor agency's
accounts immediately prior to the restructuring.
(b) Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the Statement of
Financial Position, except for purchases costing less than the following asset thresholds in which
case they are expensed in the year of acquisition.
2005 2004
. Buildings $10,000 $2,000
. Leasehold improvements $50,000 $2,000
. Plant and equipment $5,000 $2,000
All items or components which form an integral part of an asset are recognised as a single
functional asset.
277
(c) Revaluation of Assets
Land, buildings, plant and equipment are carried at valuation. Revaluations are undertaken
annually with sufficient frequency such that the carrying amount of each asset class is not
materially different, at reporting date, from its fair value.
Assets which are surplus to requirements are measured at their net realisable value.
Fair values for each class of asset are determined as follows.
. Land - Market selling price

. Buildings - Market selling price
. Leasehold improvements - Depreciated replacement cost
. Plant and equipment - Market selling price
All valuations are conducted by an independent qualified valuer.
(d) Depreciation and Amortisation
Property, plant and equipment is depreciated to its estimated residual value on a straight line basis
over the expected useful life of the asset to the Department. Leasehold improvements are
amortised on a straight line basis over the estimated useful life of the improvement or the unexpired
period of the lease, whichever is the shorter.
Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and
necessary adjustments are recognised in the current, or current and future reporting periods, as
appropriate. Residual values are re-estimated for a change in prices only when assets are revalued.
Depreciation/amortisation rates applying to each class of depreciable asset are based on the
following useful lives:
2005 2004
. Buildings 3 to 50 years 3 to 50 years
. Leasehold improvements lease term lease term
. Plant and equipment 2 to 50 years 2 to 50 years
The aggregate amount of depreciation allocated for each class of asset during the reporting period
is disclosed in Note 5.4.
(e) Impairment of Non-current Assets

Non-current assets carried at up to date fair value at the reporting date are not subject to
impairment testing.
Non-current assets carried at cost, which are not held to generate net cash inflows, have been
assessed for indications of impairment. Where indications of impairment exist, the carrying
amount of the asset is compared to the higher of its net selling price and depreciated
replacement cost and is written down as at the current reporting date.
For land, buildings, plant and equipment assets that were assessed for impairment at 30 June 2005,
none were found to be impaired (2004 none).

1.15 Intangible Assets
The Department's intangibles comprise internally developed software for internal use and licences.
All software and licences are recognised at cost in the Statement of Financial Position,
except for items costing less than $10,000, which are expensed in the year of acquisition.
All software assets were assessed for indications of impairment as at 30 June 2005. None were
found to be impaired (2004 none).
Software is amortised on a straight-line basis over its anticipated useful life.
The useful lives of the Department's software is 3 to 17 years (2003-2004: 3 to 17 years).
1.16 Inventories
Inventories held for resale are valued at the lower of cost and net realisable value. Inventories
not held for resale are valued at cost, or estimated replacement cost, unless they are no longer
required in which case they are valued at net realisable value. Costs have been assigned to
inventory quantities on hand at balance date using the first in first out or average cost bases.
1.17 National Halon Bank
The Commonwealth operates the National Halon Bank which maintains sufficient stock of halon
to meet Australia's essential use needs to 2030 and also collects, decants, recycles and destroys
surplus halon. The stock of halon (an asset) and the future costs to destroy surplus halon (a
liability) are not recognised as they can not be reliably measured and/or valued.
1.18 Foreign Currency
Transactions denominated in a foreign currency are converted at the exchange rate at the date of
the transaction. Foreign currency receivables and payables are translated at the exchange rates
current as at balance date. Associated currency gains and losses are not material.
1.19 Insurance
The Department has insured for risks through the Government's insurable risk managed fund called
'Comcover'. Workers compensation is insured through the Government's 'Comcare Australia'.
1.20 Comparatives
Comparative figures have been adjusted to conform to changes in presentation in these financial
statements, (applicable to Statement of Cash Flows, Schedule of Administered Items - Revenues,
Schedule of Administered Items - Cash Flows, and Notes 5.3, 7.2, 7.3, 11.3, 18.1, 19, 23, 27
28.5(b), 30.1 and 30.3).
279
1.21 Reporting of Administered Activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule
of Administered Items and related Notes.
Except where otherwise stated below, administered items are accounted for on the same basis
and using the same policies as for agency items, including the application of Accounting Standards,
Accounting Interpretations and UIG Abstracts.
Administered Cash Transfers to and from Official Public Account
Administered appropriations received or receivable from the Official Public Account (OPA) are
not reported as administered revenues or assets respectively. Similarly, receipts transferred or
transferable to the OPA are not reported as administered expenses or payables. These
transactions or balances are internal to the administered entity.
These transfers of cash are reported as administered (operating) cash flows and in the
Administered Reconciliation Table in Note 23.
Accounting policies which are relevant to administered activities only of the Department are
disclosed below.
(a) Revenue
All administered revenues are revenues relating to the core operating activities performed by the
Department on behalf of the Commonwealth.
Administered fee revenue is recognised when access occurs. Administered fines are recognised
in the period in which the breach occurs. Revenue is recognised at its nominal amount.
(b) Administered Investments
Administered investment in controlled entities are not consolidated because their consolidation
is relevant at the Whole of Government level.
Administered investments are recognised on the cost basis, adjusted for any subsequent capital
injections or withdrawals and for any impairment losses.
(c) Land and Buildings
The Department received appropriation of $4.750 million in 2002-2003 for the purchase of
Macquarie Lightstation and Snapper Island from the Department of Finance and Administration.
The assets were acquired in 2002-2003 and will remain with the Department until such time as they
are vested to the Sydney Harbour Federation Trust (expected to be in 2005-2006). As the assets
are heritage assets they are not depreciated as there is no foreseeable limit to the period over which
they will be held and used by the Australian Government.

2 Adoption of Australian Equivalents to International Accounting Standards

from 2005-2006
The Australian Accounting Standards Board has issued replacement Australian Accounting
Standards to apply from 2005-2006. The new standards are the Australian Equivalents to
International Financial Reporting Standards (AEIFRS). The International Financial Reporting
Standards are issued by the International Accounting Standards Board. The new standards
cannot be adopted early. The standards being replaced are to be withdrawn with effect from
2005-2006 but continue to apply in the meantime.
The purpose of issuing AEIFRS is to enable Australian entities reporting under the Corporations
Act 2001 to be able to more readily access overseas capital markets by preparing their
financial reports according to accounting standards more widely used overseas.
For-profit entities complying fully with AEIFRS will be able to make an explicit and
unreserved statement of compliance with IFRSs and as well with as a statement that the financial
report has been prepared in accordance with Australian Accounting Standards.
AEIFRS contain certain additional provisions which will apply to not-for-profit entities,
including Australian Government agencies. Some of these provisions are in conflict with the IFRS
and therefore the Department will only be able to assert that the financial report has been prepared
in accordance with Australian Accounting Standards.
AAS 29 Financial Reporting by Government Departments will continue to apply under AEIFRS.
AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International

Financial Reporting Standards requires that the financial statements for 2004-2005 disclose:
. an explanation of how the transition to AEIFRS is being managed;

. a narrative explanation of the key policy differences arising from adoption of AEIFRS;
. any known or reliably estimatable information about the impacts on the financial report had
it been prepared using the AEIFRS; and
. if the impacts of the above are not known or reliably estimatable, a statement to that effect.
The following disclosures address these requirements.
Management of Transition to AEIFRS
The Department has taken the following steps for the preparation towards the implementation
of AEIFRS:
. The Department's Audit Committee is overseeing the transition to and implementation

of AEIFRS. The Chief Finance Officer is responsible for the transition and implementation
of AEIFRS and reports to the Department's Audit Committee on progress.
. The Transition Plan requires the following key steps to be undertaken and has a timetable for
their achievement.
281
. All major accounting policy differences between current AASB standards and AEIFRS
to be identified - completed by 31 March 2005.
. A transitional Balance Sheet as at 1 July 2004 under AEIFRS to be completed and
presented to the Department's Audit Committee - presented on 16 May 2005.
. An AEIFRS compliant Balance Sheet as at 30 June 2005 to be also prepared during the
preparation of the 2004-2005 statutory financial reports.
. The 2004-2005 Balance Sheet under AEIFRS will be reported to the Department of
Finance and Administration in line with their reporting deadlines.
. A consultant was engaged to assist with the above steps.
Major Changes in Accounting Policies
Changes in accounting policies under AEIFRS are applied retrospectively, ie as if the new policy
had always applied except in relation to the exemptions available under AASB 1 First-time
Adoption of Australian Equivalents to International Financial Reporting Standards . This rule

means that an AEIFRS compliant Balance Sheet had to be prepared as at 1 July 2004.
This will enable the 2005-2006 financial statements to report comparative under AEIFRS.
Changes to major accounting policies are discussed in the following paragraphs.
Management's review of the quantitative impacts of AEIFRS represents the best estimates of the
estimates of the impacts of the changes as at reporting date. The actual effects of the impacts of
AEIFRS may differ from these estimates due to:
. continuing review of the impacts of AEIFRS on the Department's operations;

. potential amendments to the AEIFRS and AEIFRS Interpretations; and
. emerging interpretation as to the accepted practice in the application of AEIFRS and
AEIFRS Interpretations.
Property, plant and equipment
It is expected that the 2005-2006 Finance Minister's Orders will continue to require property,
plant and equipment assets to be valued at fair value in 2005-2006.
The Department has reviewed property, plant and equipment to determine whether there are any
costs associated with dismantling, retirement, disposal and/or restoration of these assets. Under
AEIFRS where the Department has an obligation and it is probable these costs will be incurred, the
Department will need to recognise the value of these costs as part of the cost of the underlying asset.
This component is then amortised over the remaining expected useful life of the underlying asset.
The figuring for the make-good provision are management estimates and therefore indicative only.
The Department is currently organising an independent review and this will provide greater reliance
on the estimates. Currently the estimated change is as follows:
The impact of this change on these financial statements would be to recognise make-good of
$668,000 for infrastructure, plant and equipment. The increase in the opening balance for
infrastructure, plant and equipment will be offset be the creation of a provision for make-good.

There would also be an increase in the depreciation charge for the year of $147,112 as a
consequence of the increased value of the opening balances for and infrastructure, plant and
equipment.
Accordingly, Note 8.2 for infrastructure, plant and equipment would appear as follows.
$'000
- At cost 5,121
Accumulated depreciation (150)
Work in progress - at cost 2,449
Total infrastructure, plant and equipment at cost 7,420
- At 1999-2004 valuation (deprival) 0

- At Transferor valuation (refer Note 1.14(a)) 0
- at 2004-2005 valuation (fair value) 102,271
Accumulated depreciation (8,468)
Total infrastructure, plant and equipment at valuation 93,803
Total Infrastructure, Plant and Equipment (non-current) 101,223
Intangibles
The Department has reviewed intangibles to ensure that they are all at cost as AEIFRS does not
permit intangibles to be measured at valuation unless there is an active market for the intangibles.
It appears that the Department's intangibles meet the recognition criteria for AEIFRS and
therefore no adjustment is required.
Impairment of non-current assets
The Department's policy on impairment of non-current assets is at Note 1.14(e).
Under AEIFRS, at each balance date the Department should assess whether there is objective
evidence of impairment. If any such evidence exists, the recoverable amount of that asset or group
of assets should be assessed and any impairment loss recognised if the carrying amount is greater
than the recoverable amount. The recoverable amount is assessed as the higher of net selling price
or value in use.
An impairment assessment of the Department's assets indicated that no adjustments will be

required.
Inventory
Inventories not held for resale are currently valued at cost, unless they are no longer required in
which case they are valued at net realisable value.
AEIFRS requires inventory held for distribution for no consideration or at nominal amount to be
carried at the lower of cost or current replacement cost.
An assessment was made and it was found that in all instances the current replacement cost of
283
inventory was equal or greater than the original cost. Therefore no adjustment is required.
Employee Benefits
The provision for long service leave is measured at the present value of estimated future cash
outflows using market yields as at the reporting date on national government bonds.
AEIFRS requires that annual leave that is not expected to be taken within 12 months of balance
date is to be discounted.
The Department expects a material amount of the annual leave balance will not be taken within
the next 12 months. Consequently there would be a reduction of $386,000 in the opening
balance of employee provisions. For the current year there would be a reduction of $523,000
in employee expenses and employee provisions.
Administered Items
An assessment of the administered assets and liabilities of the Department indicate that there are
no adjustments due to the transition to AEIFRS.
30 June 2004 Opening Balance Sheet Adjustments

$'000
Reconciliation of Departmental Equity
. Total Equity under AGAAP - 30 June 2004 258,018
. Adjustments to Accumulated Results 36,703
. Total Equity under AEIFRS - 1 July 2004 294,721
Reconciliation of Departmental Accumulated Results

. Total Accumulated Surplus under AGAAP - 30 June 2004 122,482
. Adjustments
. Assets carrying value (271)
. Provisions carrying value 386
. Interest expense (167)
. Recognition of deferred expense asset 36,755
. Total Accumulated Surplus under AEIFRS - 1 July 2004 159,185
Reconciliation of Departmental Reserves

. Total Reserves under AGAAP - 30 June 2004 129,515
. Total Reserves under AEIFRS - 1 July 2004 129,515
Reconciliation of Departmental Contributed Equity

. Total Contributed Equity under AGAAP - 30 June 2004 6,021
. Total Contributed Equity under AEIFRS - 1 July 2004 6,021

30 June 2005 Closing Balance Sheet and In-Year Adjustments

$'000
Reconciliation of Departmental Equity
. Total Equity under AEIFRS - 1 July 2004 294,721
. Adjustments to Accumulated Results 1,874
. Adjustments to Departmental Reserves 8,577
. Adjustments to Departmental Contributed Equity 43,880
. Total Equity under AEIFRS - 30 June 2005 349,052
Reconciliation of Departmental Accumulated Results

. Total Accumulated Surplus under AEIFRS - 1 July 2004 159,185
. Adjustments
. In Year Transactions 3,958
. Assets carrying value (147)
. Provisions carrying value 137
. Interest expense (80)
. Realisation of deferred expenses (1,994)
. Total Accumulated Surplus under AEIFRS - 30 June 2005 161,059
Reconciliation of Departmental Reserves

. Total Reserves under AEIFRS - 1 July 2004 129,515
. In Year Revaluation 8,519
. In Year Restructure 58
. Total Reserves under AEIFRS - 30 June 2005 138,092
Reconciliation of Departmental Contributed Equity

. Total Contributed Equity under AEIFRS - 1 July 2004 6,021
. In Year Restructure 43,880
. Total Contributed Equity under AEIFRS - 30 June 2005 49,901
3 Events Occurring after Reporting Date
There are no known events occurring after balance date that could impact on the financial
statements.
285
2005 2004
$'000 $'000
4.1 Revenues from Government
Appropriations for outputs 294,447 223,752

Resources received free of charge - government 696 370
Assets received free of charge - government 96 265
Total revenues from government 295,239 224,387
4.2 Goods and Services

Goods 146 1,272

Services 45,206 32,488
Total sales of goods and services 45,352 33,760
Provision of goods to:

- Related entities 22 0
- External entities 124 1,272
Total sales of goods 146 1,272
Rendering of services to:

- Related entities 39,153 26,802
- External entities 6,053 5,686
Total rendering of services 45,206 32,488
The cost of the goods sold and disclosed as revenue above can not be readily identified from
the Department's financial systems nor reliably estimated.
4.3 Interest Revenue
Interest on deposits 1 0

2005 2004
$'000 $'000
4.4 Net Gains from Sale of Assets
Infrastructure, plant and equipment

Proceeds from disposal 248 20
Net book value of assets disposed (654) (444)
Net loss from disposal of infrastructure, plant and equipment (406) (424)
Total proceeds from disposals 248 20

Total value of assets disposed (654) (444)
Total net loss from disposal of assets (406) (424)
4.5 Reversal of previous asset write-downs
Financial assets
Doubtful debts received - receivables 11 8
4.6 Other Revenues
Collections, scientific and other assets of the Australian

Antarctic Division recognised for the first time 0 1,710
Write-down of provisions and payables 494 1,172
Repayments of prior years expenditure 198 0
Property, plant and equipment assets recognised for first time 233 252
Grants received 656 236
Miscellaneous 61 650
Total other revenues 1,642 4,020
287
2005 2004
$'000 $'000
5.1 Employee Expenses
Wages and salary 90,685 70,644

Superannuation 17,060 14,024
Leave and other entitlements 8,847 10,074
Separation and redundancies 1,722 1,155
Other employee expenses 2,753 349
Total employee benefits expense 121,067 96,246
Workers compensation premiums 1,291 1,498

Total employee expenses 122,358 97,744
5.2 Suppliers Expenses
Goods from related entities 150 0

Goods from external entities 5,368 9,785
Services from related entities 9,442 6,147
Services from external entities 76,401 45,430
Operating lease rentals* 34,921 26,062
Total suppliers expense 126,282 87,424
* These comprise minimum lease payments only.
5.3 Grants and Transfer Funding
Other sectors in the Commonwealth 660 153

State and Territory governments 6,865 4,995
Non-profit institutions 5,248 2,459
Local governments 2,853 2,247
Overseas 752 964
Universities 1,319 712
Individuals 787 556
Profit making entities 1,111 98
Total grants 19,595 12,184
Payment to the Director of National Parks 40,085 35,552

Total transfer funding 40,085 35,552

2005 2004
$'000 $'000
5.4 Depreciation and Amortisation
Depreciation
Other infrastructure, plant and equipment 11,591 12,287
Buildings 9,753 8,353
Total depreciation 21,344 20,640
Amortisation
Intangibles - computer software 1,807 1,092
Intangibles - other 0 20
Total amortisation 1,807 1,112
Total depreciation and amortisation 23,151 21,752
The aggregate amounts of depreciation or amortisation expensed during the reporting period for
each class of depreciable asset are as follows:
Plant and equipment 11,591 12,287

Buildings 9,753 8,353
Internally developed software 1,215 821
Purchased software 592 271
Other intangibles 0 20
Total depreciation and amortisation 23,151 21,752
No depreciation or amortisation was allocated to the carrying amounts of other assets.
5.5 Write-down of Assets
Financial assets
Bad and doubtful debts expense 94 253
Inventories - asset write-downs 194 58
Intangibles - asset write-downs 148 802
Land and buildings - revaluation decrement 851 0
Land and buildings - asset write-downs 615 0
Infrastructure, plant and equipment - asset write-downs 4,341 18
Total write-down of assets 6,243 1,131
289
2005 2004
$'000 $'000
5.6 Other Expenses
Miscellaneous 10 93
Total other expenses 10 93
6 Borrowing Costs Expense
Loans 157 233

Total borrowing costs expense 157 233

2005 2004
$'000 $'000
7 Financial Assets
7.1 Cash
Cash at bank 3,740 6,918

Cash on hand 139 10
Total cash 3,879 6,928
7.2 Receivables
Provision for doubtful debts (52) (80)
3,224 1,552
Appropriation receivable - undrawn 59,342 9,137
GST receivable from the Australian Taxation Office 3,398 2,377
Receivable from Bureau of Meteorology (Notes 12.2 & 28.1) 25,464 0
Other receivables 237 886
Total receivables (net) 91,665 13,952
Receivables (gross) are aged as follows:

Not overdue 90,944 12,639
Overdue by:
Less than 30 days 226 1,129
30 to 60 days 67 32
60 to 90 days 53 11
More than 90 days 427 221
Total receivables (gross) 91,717 14,032
The provision for doubtful debts is aged as follows:

Overdue by:
Total provision for doubtful debts 52 80
All receivables are with entities external to the Department. Credit terms are generally net 30
days (2004: 30 days). No interest rate applies and payments are generally one-off.
Appropriations receivable undrawn are appropriations controlled by the Department but held in
Official Public Account under the Government's just-in-time drawdown arrangements.
291
2005 2004
$'000 $'000
7.3 Accrued Revenues

GST 564 360
Total accrued revenues 10,196 2,823
All accrued revenues are current assets.
8 Non-Financial Assets
8.1 Land and Buildings
Land
- At 1999-2004 valuation (deprival) 0 982
- At 2004-2005 valuation (fair value) 229 0
Total land 229 982
Buildings on land
- At cost 2,139 3,468

Accumulated depreciation (3) (167)
Work in progress - at cost 3,007 10,269
Total buildings on land at cost 5,143 13,570
- At 1999-2004 valuation (deprival) 0 207,114

- At 2004-2005 valuation (fair value) 194,137 0
Accumulated depreciation (9,480) (22,273)
Total buildings on land at valuation 184,657 184,841
Total buildings on land 189,800 198,411
Total land and buildings (non-current) 190,029 199,393
All revaluations are independent and are conducted in accordance with the revaluation policy
stated at Note 1. All revaluations have been conducted by an independent valuer, the Australian
Valuation Office.

2005 2004
$'000 $'000
8.2 Infrastructure, Plant and Equipment
- At cost 5,121 35,136

Accumulated depreciation (150) (7,032)
Work in progress - at cost 2,449 10,090
Total infrastructure, plant and equipment at cost 7,420 38,194
- At 1999-2004 valuation (deprival) 0 82,664

- At Transferor valuation (refer Note 1.14(a)) 0 327
- at 2004-2005 valuation (fair value) 101,603 0
Accumulated depreciation (8,321) (18,789)
Total infrastructure, plant and equipment at valuation 93,282 64,202
Total Infrastructure, Plant and Equipment (non-current) 100,702 102,396
All revaluations are independent and are conducted in accordance with the revaluation policy
stated at Note 1. All revaluations have been conducted by an independent valuer, the Australian
Valuation Office.
8.3 Intangibles
- Purchased computer software 4,278 1,964

Accumulated amortisation (2,164) (1,746)
Work in progress 0 1,869
Total purchased computer software 2,114 2,087
- Internally developed computer software 11,306 10,415

Accumulated amortisation (7,485) (6,096)
Work in progress 4,860 1,007
Total internally developed computer software 8,681 5,326
- Patents, brand names and licences 685 852

Accumulated amortisation (685) (685)
Total patents, brand names and licences 0 167
Total Intangibles (non-current) 10,795 7,580
293
8.4 Analysis of Property, Plant, Equipment, and Intangibles
8.4 (a) Reconciliation of the opening and closing balances of property, plant and equipment, and intangibles
Item Land Buildings on Total Land Other Computer Other Total Total
Land and Buildings Infrastructure, Software Intangibles Intangibles
Plant and
Equipment
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
As at 1 July 2004
Gross book value 982 220,851 221,833 128,217 15,255 852 16,107 366,157
Accumulated depreciation/amortisation 0 (22,440) (22,440) (25,821) (7,842) (685) (8,527) (56,788)
Opening net book value 982 198,411 199,393 102,396 7,413 167 7,580 309,369
Additions
by purchase 0 2,139 2,139 6,023 2,772 0 2,772 10,934
from restructure 0 0 0 211 2,126 0 2,126 2,337
Net revaluation increment/(decrement) -equity (181) (168) (349) 8,868 0 0 0 8,519

Revaluation decrement - writedown of assets
(expense) (502) (349) (851) 0 0 0 0 (851)
Depreciation/amortisation expense 0 (9,753) (9,753) (11,591) (1,807) 0 (1,807) (23,151)

Write downs (70) (545) (615) (4,341) (148) 0 (148) (5,104)
Other movements 0 65 65 (210) 439 (167) 272 127
Disposals
Other disposals 0 0 0 (654) 0 0 0 (654)
As at 30 June 2005
Gross book value 229 199,283 199,512 109,173 20,444 685 21,129 329,814
Accumulated depreciation/amortisation 0 (9,483) (9,483) (8,471) (9,649) (685) (10,334) (28,288)
Closing net book value 229 189,800 190,029 100,702 10,795 0 10,795 301,526
8.4 (b) Assets at Valuation
Item Land Buildings on Total Land Other Computer Other Total Total
Land and Buildings Infrastructure, Software Intangibles Intangibles
Plant and
Equipment
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
As at 30 June 2005
Gross value 229 194,137 194,366 101,603 295,969
Accumulated depreciation/amortisation 0 (9,480) (9,480) (8,321) (17,801)
Net book value 229 184,657 184,886 93,282 278,168
As at 30 June 2004
Gross value 982 207,114 208,096 83,435 291,531
Accumulated depreciation/amortisation 0 (22,273) (22,273) (19,233) (41,506)
Net book value 982 184,841 185,823 64,202 250,025
8.4 (c) Summary of Assets under construction

Item Buildings on Other Computer Other Total Total
Land Infrastructure, Software Intangibles Intangibles
Plant and
Equipment
$'000 $'000 $'000 $'000 $'000 $'000
Gross value as at 30 June 2005 3,007 2,449 4,860 0 4,860 10,316
Gross value as at 30 June 2004 10,269 10,090 2,876 0 2,876 23,235
295
2005 2004
$'000 $'000
8.5 Inventories
Finished goods (cost) 132 144

Total inventories held for sale 132 144
Work in progress (cost) 34 96

Finished goods (cost) 10,558 8,861
Total inventories not held for sale 10,592 8,957
Total inventories 10,724 9,101

Inventories are represented by:

Current 6,620 5,666
Non-current 4,104 3,435
Total inventories 10,724 9,101
8.6 Other Non-financial Assets
Prepayments - suppliers 1,747 646
All other non-financial assets are current assets.

2005 2004
$'000 $'000
9 Interest Bearing Liabilities
9.1 Loans
Loans from Government 3,065 3,974
Maturity schedule for loans:

Payable:
- Within one year 963 908
- In one to five years 2,102 3,066
Total loan liability 3,065 3,974
Loan liabilities are represented by:
Current 963 908
Total loan liability 3,065 3,974
The loan was issued in 1998-1999 and is repayable in annual installments ending in 2007-2008.
The interest rate is subject to review each year based on the 10 year bond rate as at 30 June. The
current interest rate is 5.12%.
9.2 Other Interest Bearing Liabilities

Lease incentive 601 704
Other interest bearing liabilities are represented by;

Current 103 103
Non-current 498 601
Total other interest bearing liabilities 601 704
297
2005 2004
$'000 $'000
10 Provisions
10.1 Employee Provisions
Salaries and wages 441 3,191

Leave 30,887 25,803
Superannuation 5,516 4,982
Separation and redundancies 243 0
Aggregate employee benefit liability and related on-costs 37,087 33,976
Employee provisions are represented by:

Current 9,798 13,041
Aggregate employee benefit liability and related on-costs 37,087 33,976
10.2 Other Provisions
Provision for Antarctic Base Restitution 34,794 36,788

Provision for Renewable Energy Certificates 223 252
Total other provisions 35,017 37,040
Other provisions are represented by:

Current 2,456 3,455
Total other provisions 35,017 37,040
Australia is required by the Madrid Protocol to remove all accumulated rubbish from the
Antarctic Territories. A process of gradual removal is in effect. The Provision for Antarctic
Base restitution is for the future costs of this exercise.
11 Payables
11.1 Suppliers Payables
Trade creditors 22,524 6,452

Total supplier payables 22,524 6,452
All suppliers payables are current liabilities.
Settlement is usually made net 30 days.

2005 2004
$'000 $'000
11.2 Grant Payables
Non-profit institutions 2,579 143

Profit making entities 880 4
State and Territory governments 545 376
Local governments 466 86
Overseas 420 119
Other sectors in the Commonwealth 66 0
Universities 43 34
Individuals 30 5
Total grant payables 5,029 767
All grants payables are current liabilities.
Settlement is made according to the terms and conditions of each grant, this is usually within 30
days of meeting the grant eligibility criteria.
11.3 Other Payables
Unearned revenue 1,209 671

Interest payable 157 233
Purchase of property, plant and equipment payables 0 105
Claims for damages/costs 0 35
Total other payables 1,981 1,911
All other payables are current liabilities.
299
12 Equity
12.1 Analysis of Equity
Asset Revaluation
Item Accumulated Results Reserves Contributed Equity TOTAL EQUITY
2005 2004 2005 2004 2005 2004 2005 2004
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Opening balance at 1 July 122,482 117,100 129,515 129,008 6,021 14,446 258,018 260,554
Net surplus 3,958 5,638 0 0 0 0 3,958 5,638
Net revaluation increment 0 0 8,519 0 0 0 8,519 0
Transactions with owner:

Distributions to owner:
Returns of capital
Restructuring 0 (256) 58 507 43,880 (8,425) 43,938 (8,174)
Closing balance at 30 June 126,440 122,482 138,092 129,515 49,901 6,021 314,433 258,018
12.2 Restructuring
Current year (2004-2005)
There have been two changes to the structure of the Department in 2004-2005.
The first of these changes was the transfer of Indigenous program functions to the Department
from the Department of Immigration and Multicultural Affairs, following the Government
decision on 20 June 2004 to abolish the Aboriginal and Torres Strait Islander Commission and
cease the Aboriginal and Torres Strait Islander Services functions. The transfer took effect on
1 July 2004.
The second major change was the abolition of the Australian Greenhouse Office and the
National Oceans Office as executive agencies under the Public Service Act 1999 and as
prescribed agencies under the Financial Management and Accountability Act 1997 on
3 November 2004. These agencies were incorporated into the Department following the
Administrative Arrangements Order changes announced after the October 2004 election.
Previously both agencies received annual appropriations and published their own annual reports.
On 11 September 2002 the Bureau of Meteorology was prescribed as a new agency and all
meteorological functions were transferred from the Department. Unspent non-lapsing
appropriations of $25,464,432 were transferred to the Bureau of Meteorology. It has now
transpired that a valid section 32 determination does not exist for the appropriations transferred.
A receivable from the Bureau of Meteorology for $25,464,432 has therefore been brought
to account and included in total assets recognised from restructuring.
Previous year (2003-2004)
On 8 September 2003, Parliament passed a package of legislation which abolished the Australian
Heritage Commission on 31 December 2003, replaced it with an Australian Heritage Council and
incorporated a new heritage regime into the Environment Protection and Biodiversity
Conservation Act 1999 . These legislative changes took effect from the proclamation date of
1 January 2004. From this date onwards, the Department has administered the new heritage
regime and receives all related funds.
On 5 December 2003 the Ozone Protection Act 1989 was amended and became the Ozone
Protection and Synthetic Greenhouse Gas Management Act 1989 . One of the consequences
of the changes to the legislation was to rename the Ozone Protection Account to the Ozone
Protection and SGG Account. The purpose of the Account has been broadened to include
National Halon Bank activities. Consequently this activity is now administered in nature rather
than departmental in nature.
301
2005 2004
$'000 $'000
In respect of the functions assumed, the net book value of assets and liabilities transferred to the
Department for no consideration and recognised as at the date of transfer were:
Total assets recognised 55,023 1,779

Total liabilities recognised (11,085) (1,528)
Net assets assumed 43,938 251
Net contribution by Government as owner during the year 43,938 251
In respect of functions relinquished, the following assets and liabilities were transferred by the
Department:
Total assets relinquished 0 (8,170)

Net assets relinquished 0 (8,170)
Net distribution to Government as owner during the year 0 (7,919)
Australian Greenhouse Office
Revenues
Recognised by the Australian Greenhouse Office 7,387 0
Recognised by the Department 40,075 0
Total revenues 47,462 0
Expenses
Total expenses 42,924 0
National Oceans Office
Revenues
Recognised by the National Oceans Office 3,271 0
Total revenues 8,557 0
Expenses
Recognised by the National Oceans Office 2,530 0
Indigenous Program Functions
All revenues and expenses for the period 1 July 2004 to 30 June 2005 have been recognised by
the Department.

2005 2004
$'000 $'000
Heritage Regime
Revenues
Recognised by the Australian Heritage Commission 0 5,041
Recognised by the Department 0 3,533
Total revenues 0 8,574
Expenses
Recognised by the Australian Heritage Commission 0 4,645
Recognised by the Department 0 3,721
Total expenses 0 8,366
National Halon Bank
Revenues
Recognised as Departmental 0 1,486
Recognised as Administered 0 1,147
Total revenues 0 2,633
Expenses
Recognised as Departmental 0 1,001
Recognised as Administered 0 1,039
Total expenses 0 2,040
303
2005 2004
$'000 $'000
Reconciliation of cash per Statement of Financial Position to Statement of Cash Flows
Cash at year end per Statement of Cash Flows 3,879 6,928

Statement of Financial Position items comprising above cash:
'Financial Asset - Cash' 3,879 6,928
Reconciliation of net surplus to net cash from operating activities
Net surplus 3,958 5,638

Assets recognised for first time (233) (1,962)

Depreciation / Amortisation 23,151 21,752
Loss on disposal of non-current assets 406 424
Write down of non-current assets 5,955 820
Asset adjustments 0 (1,680)
Increase in net assets from restructuring 38,465 0
Other revenues and expenses not involving cash (492) (1,180)
(Increase) / decrease in receivables (77,713) 11,243
(Increase) / decrease in inventories (1,623) (1,111)
(Increase) / decrease in accrued revenue (7,373) 349
(Increase) / decrease in other financial assets 23 7
(Increase) / decrease in prepayments (1,101) 1,751
Increase / (decrease) in interest bearing liabilities (1,012) (999)
Increase / (decrease) in employee provisions 3,112 3,062
Increase / (decrease) in other provisions (2,023) (5,957)
Increase / (decrease) in suppliers liabilities 16,072 (1,657)
Increase / (decrease) in grant liabilities 4,262 (1,185)
Increase / (decrease) in other liabilities 70 748
Net cash from operating activities 3,904 30,063
Australian Greenhouse Office and National Oceans Office
As a result of restructuring of administrative arrangements on 3 November 2004 certain assets

and liabilities were assumed. Note 12.2 refers. At that date the Department assumed
infrastructure, plant and equipment, and intangibles with a gross values of $2,891,000 and
accumulated depreciation/amortisation of $556,000.

Quantifiable Contingencies
There are no quantifiable contingencies in either the current or the immediately preceding
reporting period, therefore there is no Schedule for such items.
Unquantifiable Contingencies
A contractual obligation for a make good, as part of a sub-lease arrangement, where the timing,
method and cost of the work that will be required to be undertaken cannot be determined with
any degree of accuracy.
A contractual obligation for a make good, as part of an International Treaty, where the timing,
method and cost of the work that will be required to be undertaken cannot be determined with
any degree of accuracy.
(2004: Nil).
Remote contingencies
2005: 1 claim for damages/cost - estimated dollar value $300,000.

(2004: 2 claims for damages/costs - estimated dollar value $360,000)
305
The number of executives who received or were due to receive total remuneration of $100,000 or
more:
2005 2004
Number Number
$100,000 to $109,999 1 2
$110,000 to $119,999 4 0
$120,000 to $129,999 1 0
$130,000 to $139,999 3 1
$140,000 to $149,999 1 3
$150,000 to $159,999 0 3
$160,000 to $169,999 4 3
$170,000 to $179,999 4 8
$180,000 to $189,999 8 2
$190,000 to $199,999 3 1
$200,000 to $209,999 2 0
$210,000 to $219,999 1 3
$220,000 to $229,999 3 1
$230,000 to $239,999 1 1
$240,000 to $249,999 2 0
$270,000 to $279,999 1 1
$280,000 to $289,999 1 0
$300,000 to $309,999 1 1
$350,000 to $359,999 1 0
2005 2004
$ $
The aggregate amount of total remuneration of executive

shown above: 7,953,982 5,375,593
The aggregate amount of separation and redundancy/termination

benefit payments during the year to executives shown above 156,805 298,296
With executives commencing and ceasing, and the incorporation into the Department of the
Australian Greenhouse Office and the National Oceans Office (refer Note 12.2) during the year,
there was a net increase in the number of executives who received or were due to receive total
remuneration of $100,000.

2005 2004
$ $
Financial statement audit services are provided free of charge to the

Department. The fair value of audit services provided was: 512,000 370,000
In addition to the amounts disclosed above, there is an additional amount of auditor remuneration
totaling $35,000 relating to the 2005-2006 financial statements audit, arising from work done on
the opening balance sheet to be prepared under Australian equivalent to International Financial
Reporting Standards.
2005 2004
Number Number
The average staffing levels for the Department during the year were: 1,513 1,238
With the incorporation into the Department of the Australian Greenhouse Office and the
National Oceans Office (refer Note 12.2) during the year, there was a net increase in the
number of staff.
307
18.1 Interest Rate Risk
Floating Interest Fixed Interest Rate Maturing In Non-Interest Bearing Total

Financial Instrument Notes Weighted Average
Rate
Effective Interest Rate
1 year or less 1 to 5 years > 5 years
2005 2004 2005 200 4 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 % %
Financial Assets
Cash 7.1 0 0 0 0 0 0 0 0 3,879 6,928 3,879 6,928 n/a n/a
Receivables (gross) 7.2 0 0 0 0 0 0 0 0 6,911 4,895 6,911 4,895 n/a n/a

Receivable from Bureau of Meteorology 7.2 0 0 0 0 0 0 0 0 25,464 0 25,464 0 n/a n/a
Appropriation receivable 7.2 0 0 0 0 0 0 0 0 59,342 9,137 59,342 9,137 n/a n/a
Accrued revenue 7.3 0 0 0 0 0 0 0 0 10,196 2,823 10,196 2,823 n/a n/a
Total 0 0 0 0 0 0 0 0 105,792 23,783 105,792 23,783
Total assets 419,737 342,842

Financial Liabilities
Loans 9.1 3,065 3,974 0 0 0 0 0 0 0 0 3,065 3,974 5.12% 6.03%
Trade creditors 11.1 0 0 0 0 0 0 0 0 22,524 6,452 22,524 6,452 n /a n/a
Grant Payables (non Commonwealth

government) 11.2 0 0 0 0 0 0 0 0 4,963 767 4,963 767 n/a n/a
Total 3,065 3,974 0 0 0 0 0 0 27,487 7,219 30,552 11,193
Total liabilities 105,304 84,824
18.2 Net Fair Values of Financial Assets and Liabilities
The net fair value of each class of the Department's financial assets and liabilities equals its carrying
amount in both the current and immediately preceding reporting period, and none of these financial
assets or liabilities are readily traded on organised markets in a standardised form.
18.3 Credit Risk Exposures
The Department's maximum exposures to credit risk at reporting date in relation to each class of
recognised financial assets is the carrying amount of those assets as indicated in the Statement of
Financial Position.
The Department has no significant exposures to any concentrations of credit risk.
All figures for credit risk referred to do not take into account the value of any collateral or other
security.
2005 2004
$'000 $'000
19 Revenues Administered on Behalf of Government
Taxation Revenues
Other taxes, fees and fines 1,480 140
Non-taxation Revenues
Revenues from Government

Audit services received free of charge for the NHT 65 42
Goods and services

Sale of goods - external entities 184 109
Rendering of services - external entities 1,001 194
Other fees from regulatory services 802 2,257
Total goods and services 1,987 2,560
Interest
Loans - State and Territory Governments 5 6
Other 4 0
Total interest 9 6
Industry contributions 7,400 7,000
Grant repayments 1,406 993
Assets recognised for the first time 2,113 67
Other sources of non-taxation revenues 424 244

Total revenues administered on behalf of Government 14,884 11,052
309
2005 2004
$'000 $'000
Grants
Local governments 8,153 8,422
Profit making entities 29,132 1,048
Individuals 2,936 2,428
Universities 1,989 976
Overseas 2,055 287
Other sectors in the Commonwealth 38,246 7,071
Total grants 337,418 220,168
The nature of the grants is as follows:

Natural Heritage Trust - Bushcare 96,807 80,782
Natural Heritage Trust - Landcare 68,687 61,752
Natural Heritage Trust - Coastcare 49,163 28,119
Natural Heritage Trust - Rivercare 43,177 33,260
Representative Areas Program - Structural Adjustment Package 16,887 0
Renewable Remote Power Generation Program 16,053 0
Greenhouse Gas Abatement Program 12,691 0
Acquisition of Leases and Legal Costs 9,850 0
Photovoltaic Rebate Program 3,537 0
Alternative Fuels Conversion Program 2,770 0
Climate Change Strategy Programs 2,688 0
Protecting Australia's Biodiversity Hotspots 2,000 5,000
Australian Biological Resources Study Participatory Program 1,827 1,842
Maintenance and Protection of Indigenous Heritage Program 1,737 0
Daintree Conservation Initiative 1,665 0
Regional Natural Heritage Program 1,608 221
Renewable Energy Commericalisation Program 1,441 0
Water Fund Program 1,000 0
Grants-in-Aid – National Trust 822 821
Renewable Energy Equity Fund 750 0
Boat Harbour and Sisters Beach Sewerage Scheme 692 1,000
Strengthening Tasmania Programs 550 0
NEPC Service Corporation 429 424
Local Greenhouse Action Program 390 0
National Cultural Heritage Program 182 59
Environmental Rating Scheme 15 0
Rural and Regional Historic Hotels Program 0 808
Goondiwindi Serpentine Water Park 0 530
Cathedral Restoration Projects 0 5,550
337,418 220,168

2005 2004
$'000 $'000
20 Expenses Administered on Behalf of Government (continued)
Suppliers
Provision of goods - external entities 930 656
Rendering of services - related entities 23,375 19,718
Rendering of services - external entities 29,842 25,937
Total suppliers 54,147 46,311
Write-down and impairment of assets

Financial assets - receivables - loans to Commonwealth entities 300 0
Financial assets - receivables - other 34 103
Non-financial assets - inventories 269 19
Non-financial assets - other* 32,237 2
Total write-down and impairment of assets 32,840 124
* Under the Representative Areas Program - Structural Adjustment Package fishing licences to the
value of $32,237,000 were acquired during the year. The rights embodied in the fishing licences
represent possible future economic benefit. Their cash-generating potential could be realised
through use or disposal. The licences were acquired with a view, not to realise their cash potential,
but with the public purpose of lessening fishing pressure on the Great Barrier Reef. As there is
presently no intention to use the licences to generate any cash flows through use or disposal the
value of the fishing licences has been written down to nil.
Other expenses administered on behalf of Government 581 938
Total expenses administered on behalf of Government 424,986 267,541
311
2005 2004
$'000 $'000
Financial assets
Cash
Special accounts 18 0
Other 417 1
Total cash 435 1
(The balance of the administered cash account is non-interest bearing.)
Receivables
Loans to State and Territory governments 34 42
(Loans were made under financial assistance legislation. No security is required. Principal is
repaid in full at maturity. Interest rates are fixed. Effective interest rates range from 9.0% to
14.475%. Interest payments are due on the last day of July and January each financial year.)
Loans to Commonwealth Entity 4,409 0

Provision for doubtful debts (2,870) 0
1,539 0
(The loan represents the funding payments to IIF Investments Pty Ltd (IIPL) less repayments under
Renewable Energy Equity Fund (REEF) Program. The loan agreement was negotiated between
the IIPL and the Industry Research and Development Board (IRD) on behalf of the Commonwealth
under the REEF Program. The Annual Report of IIPL provides further information on the
investments under the REEF Program.)
Goods and services 8 88
(All receivables are with entities external to the Department. Credit terms are generally 30
days (2004: 30 days).)
Goods and Services Tax 4,710 6,156
Other receivables 534 608

Provision for doubtful debts (116) (82)
418 526

Overdue by:
Less than 30 days 54 73
30 to 60 days 50 41
60 to 90 days 3 51

2005 2004
$'000 $'000
21 Assets Administered on Behalf of Government (continued)
Not overdue 2,870 0
Overdue by:
2,986 82
Investments
Commonwealth authorities:
Director of National Parks and Wildlife 95,907 95,907
Great Barrier Reef Marine Park Authority 13,017 13,017
Sydney Harbour Federation Trust 25,877 9,377
Total investments 134,801 118,301
Accrued Revenues
Interest on loans 2 3
GST 1,474 438
Other 67 0
Total accrued revenues 1,562 441

Land and Buidlings
Heritage buildings - at acquisition value 4,750 4,750
Infrastructure, Plant and Equipment

Heritage plant and equipment - fair value 1,271 1,271
Revaluation were completed by the Australian Valuation Office
in accordance with the policy stated in note 1.
Inventories
Total inventories held for sale 149 141
Work in progress (cost) 122 30

Total inventories not held for sale 422 251
Total inventories 571 392
Other Non-financial Assets

Prepayments 2,899 74
Total assets administered on behalf of Government 152,998 132,042
313
2005 2004
$'000 $'000
Interest Bearing Liabilities

Overdraft 0 341
Payables
Suppliers Payables
(All creditors are entities that are not part of the Australian Government. Settlement is usually
made within 30 days).
Grant Payables
Public sector
Local governments 249 273
Commonwealth entities 3,011 116
Private sector 0
Profit making entities 14,945 14
Individuals 37 138
Universities 268 12
Total grant payables 53,391 32,720
(All grants are to entities that are not part of the Department. Settlement is made in accordance
with terms and conditions for each grant. This is usually within 30 days of performance or eligibility)
Other payables
GST appropriation payable 5,501 6,444
Total other payables 5,769 7,343
Total liabilities administered on behalf of Government 63,696 43,431
All liabilities are expected to be settled within 12 months of balance date.

2005 2004
$'000 $'000
Opening administered assets less administered liabilities as at 1 July 88,611 107,691
Plus: Administered revenues 14,884 11,052

Less: Administered expenses (424,986) (267,541)
Administered transfers to / from Government:
Appropriation transfers from OPA:
Annual appropriations administered expenses 129,964 16,882
Annual appropriations special accounts 309,859 227,551
Transfers to OPA (37,975) (11,189)
Restructuring (7,555) 4,165
Movement in carrying amount of investment 16,500 0
Closing administered assets less administered liabilities as at 30 June 89,302 88,611
24 Administered Contingent Liabilities and Assets
Quantifiable administered contingencies
There are no quantifiable contingencies in either the current or the immediately preceding
reporting periods, therefore there is no Schedule for such items.
Unquantifiable administered contingencies
Nil for 2005 and 2004.
Remote administered contingencies
Nil for 2005 and 2004.
25 Administered Investments
The principal activities of each of the Department's administered investments are as follows:
* Director of National Parks and Wildlife - assists the Minister and the Department in the
conservation and appreciation of Australia's biological diversity and associated cultural heritage,
through leadership and cooperation in the management of the Commonwealth's protected areas.
* Great Barrier Reef Marine Park Authority - works in partnership with Commonwealth and
Queensland government agencies to undertake a wide range of functions to ensure that the
conservation and world heritage values of the Great Barrier Reef are preserved for future
generations.
* Sydney Harbour Federation Trust - responsible for planning, managing, conserving, enhancing
and making publicly accessible certain lands on or near the foreshores of Sydney Harbour.
315
26 Administered Restructuring
A major change impacting on the department was the abolition of the Australian Greenhouse
Office and the National Oceans Office as executive agencies under the Public Service Act 1999
and as a prescribed agencies under the Financial Management and Accountability Act 1997
on 3 November 2004. These agencies were incorporated into the Department following the
Administrative Arrangements Order changes announced after the October 2004 election.
Previously both agencies received annual appropriation and published their own annual reports.
In respect of the function assumed, the net book value of administered assets and liabilities
transferred to the Department for no consideration and recognised as at the date of transfer were:
2005 2004
$'000 $'000
Total assets recognised 3,515 1,779

Total liabilities recognised 11,070 1,528
Net assets (liabilities) assumed (7,555) 251
Net increase (decrease) in administered net assets during the year (7,555) 251
Administered revenues and expenses for the full year for the functions assumed by the
Department are as follows.
Revenues
Recognised by the Department 11 0
Total revenues 11 0
Expenses

27.1 Administered Interest Rate Risk
Floating Interest Fixed Interest Rate Maturing In Non-Interest Bearing Total Weighted Average
Financial Instrument Notes Rate Effective Interest Rate
1 year or less 1 to 5 years > 5 years
2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 % %
Financial Assets
Cash 21 0 0 0 0 0 0 0 0 435 1 435 1 n/a n/a
Receivables (gross) 21 0 0 0 0 0 0 0 0 5,252 6,852 5,252 6,852 n/a n/a
Loans to State and Territory
Governments 21 0 0 10 8 24 34 0 0 0 0 34 42 13.30% 13.30%
Loans to Commonwealth
Entities (gross) 21 0 0 0 0 0 0 0 0 4,409 0 4,409 0 n/a n/a
Accrued Revenue 21 0 0 0 0 0 0 0 0 1,562 441 1,562 441 n/a n/a
Total 0 0 10 8 24 34 0 0 11,658 7,294 11,692 7,336
Total assets 152,998 132,042
Overdraft 22 0 341 0 0 0 0 0 0 0 0 0 341 0.00% 0.00%
Trade Creditors 22 0 0 0 0 0 0 0 0 4,536 3,027 4,536 3,027 n/a n/ a
Grant Payables (non

Commonwealth government) 22 0 0 0 0 0 0 0 0 50,380 32,604 50,380 32,604 n/a n/a
Total 0 341 0 0 0 0 0 0 54,916 35,631 54,916 35,972
Total liabilities 63,696 43,431
317
27.2 Net Fair Values of Administered Financial Assets and Liabilities
The net fair value of each class of administered financial assets and liabilities equals its carrying
amount in both the current and immediately preceding reporting period, and none of these financial
assets or liabilities are readily traded on organised markets in a standardised form.
The Department's maximum exposures to credit risk at reporting date in relation to each class of
recognised financial assets and liabilities is the carrying amount of those assets and liabilities as
indicated in the Schedule of Administered Items which details assets and liabilities administered
on behalf of Government.
The Department has no significant exposures to any concentrations of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other
security.

28 Appropriations
28.1 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations
Particulars Administered Expenses Departmental Total
Outcome 1 Outcome 2 Outputs
$ $ $ $
Year ended 30 June 2005
Balance carried from previous year 21,837,302 0 15,220,446 37,057,748
Prior Year Adjustment 76,315 0 0 76,315
Reduction of appropriations (prior years) (21,608,635) 0 0 (21,608,635)
Prior year appropriation - invalid FMA Act section 321 0 0 25,464,432 25,464,432
Adjusted balance carried from previous year 304,982 0 40,684,878 40,989,860
Appropriation Act (No.1) 2004-2005 318,103,000 0 232,027,000 550,130,000
Comcover receipts (Appropriation Act section 13) 0 0 1,021 1,021
Adjustment of appropriations on change of entity function (FMA Act section 32) 42,946,430 0 68,244,502 111,190,932
Refunds credited (FMA Act section 30) 224,120 0 4,600,664 4,824,784
Sub-total 2004-2005 annual appropriation 426,199,532 0 361,142,065 787,341,597
Appropriations to take account of recoverable GST (FMA Act section 30A) 3,544,432 0 11,413,138 14,957,570
2
Annotations to "net appropriations" (FMA Act section 31) 0 0 42,023,590 42,023,590
Total Appropriations available for payments 429,743,964 0 414,578,793 844,322,757
Cash payments made during the year (GST inclusive) (90,501,682) 0 (325,550,583) (416,052,265)
Appropriations credited to Special Accounts (excluding GST) (302,665,750) 0 0 (302,665,750)
Balance of authority to draw cash from the CRF for ordinary annual services
appropriations 36,576,532 0 89,028,210 125,604,742
Represented by:
Cash at bank and on hand 416,583 0 3,877,510 4,294,093
Receivable from Bureau of Meteorology1 0 0 25,464,432 25,464,432
Receivable - departmental appropriations 0 0 59,341,627 59,341,627
Receivables - GST receivable from customers 5,491 0 310,574 316,065
Receivables - GST from the ATO 1,951,314 0 2,905,579 4,856,893
Payables - GST payable (1,956,803) 0 (2,871,512) (4,828,315)
Undrawn, unlapsed administered appropriations 36,159,947 0 0 36,159,947
Total 36,576,532 0 89,028,210 125,604,742
319
28.1 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations (continued)
Year ended 30 June 2004 (comparative period)
Balance carried from previous year 379,191,807 0 49,665,960 428,857,767
Other cash adjustments (378,836,540) 0 (25,439,617) (404,276,157)
Appropriation Act (No.5) 2003-2004 5,500,000 0 0 5,500,000
Refunds credited (FMA Act section 30) 0 0 3,178,212 3,178,212
Appropriations to take account of recoverable GST (FMA Act section 30A) 1,174,907 0 5,919,297 7,094,204
Annotations to 'net appropriations' (FMA Act section 31) 0 0 35,856,283 35,856,283
Total Appropriations available for payments 147,031,173 0 281,007,135 428,038,308
Payments made during the year (GST inclusive) (15,967,769) 0 (265,786,689) (281,754,458)
Appropriations credited to Special Accounts (109,226,103) 0 0 (109,226,103)
Balance carried to the next period 21,837,302 0 15,220,446 37,057,748
Footnotes:
(1) Section 32 of the Financial Management and Accountability Act 1997 (the FMA Act) applies if a function of an agency (the old agency) becomes
a function of another agency (the new agency), either because the old agency is abolished or for any other reason. The FMA Act enables the
Finance Minister to, amongst other things, issue one or more directions to transfer from the old agency to the new agency some or all of an amount
that has been appropriated for the performance of that function by the old agency.

On 11 September 2002 the Department (the old agency) relinquished the responsibility for undertaking meteorological and related monitoring and
research, and the provision of weather and climate services for the Australian community to the Bureau of Meteorology (the new agency) as a
consequence of the Bureau of Meteorology becoming a prescribed agency.
On 11 September 2002 there was $25,464,432 unspent non-lapsing appropriations for meteorological functions from previous and
the 2002-03 years, which was transferred from the Department to the Bureau of Meteorology. It has now transpired that a valid section 32
determination does not exist for the transfer.
Action is being taken to obtain a section 32 determination in respect of the $25,464,432, but in the interim the amount remains part of the Department's
"balance of authority to draw cash from the CRF for ordinary annual services appropriations".
(2) Appropriation acts nos. 1 and 3 (for the ordinary annual services of government) authorise the supplementation of an agency's annual net
appropriation by amounts received in accordance with agreements made under section 31 of the Financial Management and Accountability Act 1997
between the Finance Minister and the responsible Minister or their delegated or authorised officials.
Doubt has arisen as to whether the Department's Section 31 Agreement covering the period 1 July 1999 to 29 June 2005 was effective because the Department's signatory
may not have had an express delegation or authority for signing the agreement. To put the matter beyond doubt, the Department's current agreement was revised on
30 June 2005 to capture all monies that were subject to prior agreement to the extent it may have been ineffective.
The period and amounts covered by the agreement are set out below.
Total Total
Pre-accrual 1/7/99 to
98-99 Budgeting 99-00 00-01 01-02 02-03 03-04 Sub-total 04-05 30/6/05
Receipts affected 21,919,000 2 1, 9 1 9 , 0 0 0 46 , 3 5 2 , 7 92 4 9 , 1 4 4 , 22 5 45 , 9 10, 6 87 3 2 , 3 4 8 , 55 4 3 5, 85 6 , 2 8 3 209,612,541 4 2, 02 3, 5 9 0 2 5 1 , 6 3 6, 1 3 1
Spent 8,699,626 8,699,626 0 23,784,107 4 1, 546 , 45 5 3 3 , 6 1 5, 8 7 8 7 0, 3 0 1 , 7 9 7 169,248,237 0 1 69 , 24 8, 2 37
Unspent 13,219,374 1 3 , 21 9 , 3 7 4 4 6, 3 5 2 , 7 9 2 2 5, 36 0 , 11 8 4 , 3 64 , 2 3 2 (1,267,324) (34,445,514) 4 0 , 364 , 3 0 4 42,023,590 8 2 , 387 , 89 4
Legal advice indicates that in the circumstances a court is unlikely to conclude that the doubtful agreement is invalid for the purposes of determining whether there
has been a breach of section 83 of the Constitution.
321
28.2 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations
Particulars Administered Expenses Non-operating Total
Outcome 1 Outcome 2
SPP's NAE SPP's NAE Equity Loans Previous Admin assets
years' & liabilities
outputs
$ $ $ $ $ $ $ $ $
Year ended 30 June 2005
Balance carried from previous year 150,000 0 0 0 0 0 2,109,000 0 2,259,000
Reduction of appropriations (prior years) 0 0 0 0 0 0 (2,109,000) 0 (2,109,000)
Adjusted balance carried from previous year 150,000 0 0 0 0 0 0 0 150,000
Appropriation Act (No. 2) 2004-2005 1,000,000 0 0 0 0 0 0 0 1,000,000
Appropriation Act (No. 4) 2004-2005 550,000 0 0 0 0 0 0 0 550,000
Departmental adjustments and borrowings 0 0 0 0 0 0 0 0 0
Advance to the Finance Minister 0 0 0 0 0 0 0 0 0
Adjustment of appropriations on change of entity function 0
(FMA Act section 32) 26,524,951 0 0 0 0 0 0 0 26,524,951
Refunds credited (FMA Act section 30) 0 0 0 0 0 0 0 0 0
Appropriations reduced by section 11 determination (current year) 0 0 0 0 0 0 0 0 0
Sub-total 2004-2005 annual appropriation 28,224,951 0 0 0 0 0 0 0 28,224,951

Appropriations to take account of recoverable GST (FMA Act
section 30A) 166,361 0 0 0 0 0 0 0 166,361
Total appropriations available for payments 28,391,312 0 0 0 0 0 0 0 28,391,312
Cash payments made during the year (GST inclusive) (22,187,393) 0 0 0 0 0 0 0 (22,187,393)
Appropriations credited to Special Accounts (GST exclusive) 0 0 0 0 0 0 0 0 0
Balance of authority to draw cash from CRF for other than 0
ordinary annual services appropriations 6,203,919 0 0 0 0 0 0 0 6,203,919
Represented by: 0

Cash at bank and on hand 0 0 0 0 0 0 0 0 0
Departmental appropriations receivable 0 0 0 0 0 0 0 0 0
GST receivable from the ATO 0 0 0 0 0 0 0 0 0
Formal reductions of appropriations 0 0 0 0 0 0 0 0
Departmental appropriation receivable (appropriation for 0
additional outputs) 0 0 0 0 0 0 0 0 0
Undrawn, unlapsed administered appropriations 6,203,919 0 0 0 0 0 0 0 6,203,919
Total 6,203,919 0 0 0 0 0 0 0 6,203,919
Year ended 30 June 2004 (comparative period)
Balance carried from previous year 700,000 0 0 0 0 0 0 0 700,000
Other cash adjustments (380,000) 0 0 0 0 0 0 0 (380,000)
Appropriation Act (No. 2) 2003-2004 1,150,000 0 0 0 0 0 2,224,000 0 3,374,000
Appropriation Act (No. 4) 2003-2004 380,000 0 0 0 0 0 2,109,000 0 2,489,000
Appropriations to take account of recoverable GST (FMA Act
section 30A) 32,000 0 0 0 0 0 0 0 32,000
Total appropriation available for payments 1,882,000 0 0 0 0 0 4,333,000 0 6,215,000
Cash payments made during the year (GST inclusive) (1,732,000) 0 0 0 0 0 (2,224,000) 0 (3,956,000)
Balance carried to next year 150,000 0 0 0 0 0 2,109,000 0 2,259,000
28.3 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special
Appropriations (Unlimited Amount)
Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 Administered
Sub-section 65C(1) Outcome 1
2005 2004
$ $
Purpose: Amounts equal to amounts received by the Commonwealth as:
. Fees for the grant of licences under the Ozone Protection Act 1989;
. Fees under the Ozone Protection (Licence Fees - Manufacture) Act 1995 and the
Ozone Protection (Licence Fees - Imports) Act 1995; and
. Penalties under sub-section 69(2) of the Ozone Protection Act 1989.
All transactions under this Act are recognised as administered items.

Budget Estimate 0 746,000
Appropriations credited to Special Account during the year 0 422,303
Total for unlimited special appropriations

2005 2004
$ $
Budget Estimate 0 746,000
Appropriations credited to Special Account during the year 0 422,303
323
28.4 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special
Appropriations (Limited Amount)
Appropriation (Supplementary Measures) Act (No. 2) 1999 Departmental

Section 3 Outcome 1
2005 2004
$ $
Purpose: Supporting the development and implementation of in-service emissions testing capabilities
for diesel and petrol vehicles, where the diesel emissions testing is in connection with the
making and/or implementation of a Diesel National Environment Protection.
All transactions under this Act are recognised as departmental items.

Balance carried from previous period 0 453,339
Adjustment to balance carried from previous year 0 (453,339)
Adjusted balance carried forward from previous year 0 0
Appropriations for reporting period 0 10,000,000

GST credits (FMA Act section 30A) 0 340,299
Available for payments 0 10,340,299
Payments made 0 (4,125,672)
Special appropriation lapsed 0 (6,214,627)
Balance carried to next period 0 0
Appropriation (Supplementary Measures) Act (No. 2) 1999 Departmental

Section 3 Outcome 1
2005 2004
$ $
Purpose: Developing a product stewardship system for the reuse and recycling
of waste oil.
All transactions under this Act are recognised as departmental items.

Balance carried from previous period 0 2,032,153
Adjustment to balance carried from previous year 0 (2,032,153)
Adjusted balance carried forward from previous year 0 0
Appropriations for reporting period 0 15,000,000
GST credits (FMA Act section 30A) 0 535,369
Payments made 0 (6,870,670)
Special appropriation lapsed 0 (8,664,699)
Balance carried to next period 0 0
Captains Flat (Abatement of Pollution) Agreement Act 1975 Administered

Outcome 1
Purpose: Amounts payable to the Government of New South Wales in accordance with an agreement
made under section 3, by way of financial assistance.
There were no transactions against this appropriation during 2004-2005 (2003-2004: Nil).
The balance of this appropriation at 30 June 2005 is Nil (2003-2004: Nil).

2005 2004
$ $
28.5 Special Accounts
a) Special accounts comprise part of the Department's administered reporting entity.
Natural Heritage Trust of Australia Account

Legal Authority - Natural Heritage Trust of Australia Act 1997, Section 4
Purpose - The purposes of the Reserve are as follows:

(a) the National Vegetation Initiative;
(b) the Murray-Darling 2001 Project;
(c) the National Land and Water Resources Audit;
(d) the National Reserve System;
(e) the Coasts and Clean Seas Initiative;
(f) environmental protection (as defined by section 15 of the Act);
(g) supporting sustainable agriculture (as defined by section 16);
(h) natural resources management (as defined by section 17 of the Act);
(i) a purpose incidental or ancillary to any of the above purposes;
(j) the making of grants of financial assistance for any of the above purposes; and
(k) an accounting transfer purpose (as defined by section 18 of the Act).
This account earns interest at the rate of interest earned by the Commonwealth as at the end of the
financial year on deposits held with the Reserve Bank of Australia.
Balance carried from previous year 389,320,237 484,147,043
Natural Heritage Trust of Australia Act 1997 credits:
. Sub-section 6(2) 20,049,992 22,512,947
. Sub-section 23(1) 302,607,000 109,083,103
Receipts from other sources 1,004,038 722,528
GST credits (FMA Act section 30A) 16,200,185 10,583,733
Available for payments 729,181,452 627,049,355
Payments made (321,085,940) (237,729,117)
Balance carried to next year* 408,095,512 389,320,237
Represented by:
Cash transferred to the OPA 411,969,317 394,779,141
GST payable to the OPA 3,873,805 (5,458,904)
Total 408,095,512 389,320,237
* In accordance with the legal authority for the Account, separate financial statements are prepared
for the Account. The balance for the Account is reported in those financial statements as
appropriations receivable undrawn plus cash (2004 less overdraft) as this amount represents
appropriations that are controlled by the Department but held in the Official Public Account
under the Government's just-in-time drawdown arrangements.
325
Environment - Federation Fund Account

Legal Authority - Financial Management and Accountability Act 1997, Section 20
Purpose - For expenditure on substantial capital projects throughout Australia which will mark
the centenary of Federation and make a significant and lasting contribution to the
Australian Community.
This account is non-interest bearing.

Return of appropriation to OPA* 31,042,724 0
Balance carried to next year 0 31,042,724
Represented by:
Cash transferred to the OPA 0 31,042,724
* The Finance Minister signed a Special Account determination abolishing the Federation Fund
Account with effect from 9 July 2004.
Ozone Protection and SGG Account

Legal Authority - Ozone Protection and Synthetic Greenhouse Gas Management Act 1989,
Section 65B
Purpose - The following are the purposes of the Account:

(a) paying or reimbursing the Commonwealth's costs associated with the administration
of the Act and the regulations;
(b) paying or reimbursing the Commonwealth's costs associated with furthering the
following programs (including providing information about those programs):
(i) ODS phase-out programs; and
(ii) emission minimisation programs for ODSs and SGGs;
(c) paying or reimbursing the Commonwealth's costs associated with the management of
the National Halon Bank; and
(d) refunding any amounts credited to the Account in error.

Appropriations for reporting period 0 422,303
Appropriations for prior periods (Refer Note 12.2) 0 7,684,267
Receipts from other sources 4,154,541 871,475
GST credits (FMA Act section 30A) 241,549 0
Available for payments 14,805,317 10,743,331
Payments made (4,149,531) (334,104)
Balance carried to next year 10,655,786 10,409,227
Represented by:

2005 2004
$ $
28.5 Special Accounts (continued)
National Cultural Heritage Account

Legal Authority - Protection of Moveable Cultural Heritage Act 1986, Section 25
Purpose - Amounts standing to the credit of the National Cultural Heritage Account may be
expended for the purpose of facilitating the acquisition of Australian protected objects
for display or safe-keeping.

Balance carried from previous year 441,250 357,000
Appropriations for reporting period 58,750 143,000
GST credits (FMA section 30A) 18,200 5,875
Available for payments 518,200 505,875
Payments made (200,200) (64,625)
Balance carried to next year 318,000 441,250
Represented by:
Cash transferred to the OPA 318,000 443,750
GST payable to the OPA 0 (2,500)
Total 318,000 441,250
Australian Antarctic Heritage Conservation Special Account

Legal Authority - Financial Management and Accountability Act 1997, Section 20
Purpose - The following are the purposes of the Account:

(a) the conservation of Antarctic and sub-Antarctic heritage, including the conservation
of the Mawson's Huts Historic Site; and
(b) activities that are incidental to that conservation.
There were no transactions of this account during 2004-2005 (2003-2004: Nil).
The balance of this account at 30 June 2005 is Nil (2003-2004: Nil).
Sea Installations Account

Legal Authority - Sea Installations Act 1987, Section 38
Purpose - There must be transferred to the Reserve from the Consolidated Revenue Fund amounts
equal to money paid as a security under section 37 by way of a cash deposit.
WELS Account
Legal Authority - Water Efficiency Labelling and Standards Act 2005, Section 64
Purpose - The purpose of the Account is to make payments:

(a) to further the objects of the Water Efficiency Labelling and Standards Act 2005
(as set out in section 3 of the Act); and
(b) otherwise in connection with the performance of the Regulator's functions under the
Act, the regulations or a corresponding State-Territory law.
327
2005 2004
$ $
b) Special public moneys are trust account in nature and do not comprise part of the Department's
reporting entity.
Australian and New Zealand Environment and Conservation Council Fund Trust Account
Legal Authority - Financial Management and Accountability Act 1997 , Section 20
Purpose - for expenditure to support environmental research and special activities approved by
the Australian and New Zealand Environment and Conservation Council or a
Committee appointed by the Council for that purpose.

The balance of this account at 30 June 2005 is $12,429 (2003-2004: $12,429).
Environment - Services for other Governments and Non-agency Bodies Account

Purpose - For the expenditure in connection with services performed on behalf of other
Governments and bodies that are not Agencies under the Financial Management and
Accountability Act 1997.

Opening balance at 1 July 3,372,987 3,424,057
Receipts during the year 380,405 255,332
GST credits (FMA Act section 30A) 20,907 26,425
Available for payment 3,774,299 3,705,814
Payments made (440,615) (332,827)
Balance at 30 June 3,333,684 3,372,987
Represented by:
Other Trust Moneys Account

Purpose - For the expenditure of moneys temporarily held on trust or otherwise for the benefit
of a person other than the Commonwealth

Opening balance at 1 July 10,591 10,591
Receipts during the year 112,522 2,542
Available for payment 123,113 13,133
Payments made 0 (2,542)
Balance at 30 June 123,113 10,591
Represented by:
Cash transferred to the OPA 123,113 10,591

Act of Grace
No Act of Grace expenses were incurred during the reporting period. (2004: No Act of Grace
incurred)
Waivers
No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1)
of the Financial Management and Accountability Act 1997 . (2004: No waivers)
Ex-Gratia
No ex-gratia payments were made during the reporting period. (2004: No ex-gratia payments)
Defective Administration Scheme
No payments were made under the Defective Administration Scheme. (2004: No payment was
made under the Defective Administration Scheme)
329
30 Reporting by Outcomes
A percentage based attribution system has been used to determine the allocation of shared items. The percentages used differ in some
instances from those used for the 2004-2005 Budget.
30.1 Net cost of Outcome Delivery
Outcome 1 Outcome 2 Total

2005 2004 2005 2004 2005 2004
$'000 $'000 $'000 $'000 $'000 $'000
Administered expenses 424,986 267,541 0 0 424,986 267,541
Departmental expenses 232,022 165,467 106,513 91,090 338,535 256,557
Total expenses 657,008 433,008 106,513 91,090 763,521 524,098
Costs recovered from provision of goods and services
to the non-government sector:
Administered 3,467 2,700 0 0 3,467 2,700
Departmental 4,749 4,982 1,428 1,976 6,177 6,958
Total costs recovered 8,216 7,682 1,428 1,976 9,644 9,658
Other external revenues:

Administered
Interest on loans 9 6 0 0 9 6
Reversal of previous asset write-downs 0 0 0 0 0 0
Goods and services revenue from related entities 0 0 0 0 0 0
Industry contributions 7,400 7,000 0 0 7,400 7,000
Other 4,008 1,346 0 0 4,008 1,346
Total administered 11,417 8,352 0 0 11,417 8,352
Departmental
Interest on cash deposits 1 0 0 0 1 0
Revenue from disposal of assets 165 0 83 20 248 20
Other 1,583 2,310 59 1,710 1,642 4,020
Goods and services revenue from related entities 27,528 24,897 11,647 1,905 39,175 26,802
Total departmental 29,288 27,215 11,789 3,635 41,077 30,850
Total other external revenues 40,705 35,567 11,789 3,635 52,494 39,202
Net cost / (contribution) of outcome 608,087 389,759 93,296 85,479 701,383 475,238
Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual
Budget Outcome. Refer to Outcome 1 Resourcing Table and Outcome 2 Resourcing Table of this Annual Report.

30.2 Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs
Grants and Total

Transfer Other Departmental
Employees Suppliers Funding Depreciation expenses Expenses
Departmental Expenses $'000 $'000 $'000 $'000 $'000 $'000
OUTCOME 1
Output 1.1 2005 4,115 5,276 4,092 505 99 14,087
2004 5,036 6,950 3,818 567 74 16,445
Output 1.2 2005 16,999 7,495 677 740 195 26,106
2004 20,785 10,277 745 732 573 33,112
Output 1.3 2005 8,680 9,330 1,140 291 39 19,480
2004 1,146 229 0 66 32 1,473
Output 1.4 2005 8,924 3,972 155 823 43 13,917
2004 8,829 4,559 221 591 186 14,386
Output 1.5 2005 12,251 6,156 5,255 744 146 24,552
2004 6,466 6,978 3,074 450 236 17,204
Output 1.6 2005 13,036 9,793 4,263 887 1,344 29,323
2004 13,680 12,542 3,103 885 189 30,399
Output 1.7 2005 7,258 5,058 265 273 123 12,977
2004 3,838 2,058 101 178 56 6,231
Output 1.8 2005 4,898 2,533 210 185 31 7,857
2004 3,900 1,397 378 153 53 5,881
Output 1.9 2005 2,091 1,629 40,097 27 3 43,847
2004 3,466 1,186 35,623 24 37 40,336
Output 1.10 2005 14,229 21,915 2,771 724 237 39,876
2004 0 0 0 0 0 0
Total 2005 92,481 73,157 58,925 5,199 2,260 232,022
Outcome 1 2004 67,146 46,176 47,063 3,646 1,436 165,467
OUTCOME 2
Output 2.1 2005 4,577 8,444 120 2,837 620 16,598
2004 4,698 6,559 107 2,863 60 14,287
Output 2.2 2005 12,627 21,293 303 7,255 2,407 43,885
2004 12,893 16,526 270 7,316 233 37,238
Output 2.3 2005 6,994 12,905 183 4,338 971 25,391
2004 7,177 10,023 163 4,375 94 21,832
Output 2.4 2005 5,679 10,483 149 3,522 806 20,639
2004 5,830 8,140 133 3,552 78 17,733
Total 2005 29,877 53,125 755 17,952 4,804 106,513
Outcome 2 2004 30,598 41,248 673 18,106 465 91,090
TOTAL 2005 122,358 126,282 59,680 23,151 7,064 338,535

2004 97,744 87,424 47,736 21,752 1,901 256,557
Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating
the actual Budget Outcome.
331
30.2 Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs (continued)
Revenues Total
from Sale of goods Other Departmental
Government and services Interest revenues Revenues
Funded by: $'000 $'000 $'000 $'000 $'000
OUTCOME 1
Output 1.1 2005 13,160 943 0 219 14,322
2004 13,832 4,473 0 256 18,561
Output 1.2 2005 18,349 7,968 0 151 26,468
2004 19,758 12,182 0 322 32,262
Output 1.3 2005 14,412 4,024 0 78 18,514
2004 3,228 421 0 0 3,649
Output 1.4 2005 12,192 1,606 0 71 13,869
2004 12,292 1,467 0 119 13,878
Output 1.5 2005 22,756 1,040 0 326 24,122
2004 16,120 1,061 0 1,004 18,185

Output 1.6 2005 23,274 4,775 0 493 28,542
2004 23,527 4,894 0 515 28,936
Output 1.7 2005 10,634 5,873 0 67 16,574
2004 6,599 1,495 0 44 8,138
Output 1.8 2005 3,575 4,228 0 39 7,842
2004 3,042 3,099 0 27 6,168
Output 1.9 2005 43,404 588 0 5 43,997
2004 40,450 787 0 31 41,268
Output 1.10 2005 46,931 1,232 1 310 48,474
2004 0 0 0 0 0
Total 2005 208,687 32,277 1 1,759 242,724
Outcome 1 2004 138,848 29,879 0 2,318 171,045
OUTCOME 2
Output 2.1 2005 13,681 2,077 0 24 15,782
2004 13,518 615 0 291 14,424
Output 2.2 2005 35,032 5,219 0 54 40,305
2004 34,585 1,554 0 655 36,794
Output 2.3 2005 20,897 3,201 0 35 24,133
2004 20,658 948 0 425 22,031
Output 2.4 2005 16,942 2,578 0 29 19,549
2004 16,778 764 0 359 17,901
Total 2005 86,552 13,075 0 142 99,769
Outcome 2 2004 85,539 3,881 0 1,730 91,150
TOTAL 2005 295,239 45,352 1 1,901 342,493

2004 224,387 33,760 0 4,048 262,195
Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating
the actual Budget Outcome.

30.3 Major Classes of Administered Revenues and Expenses by Outcome
Outcome 1 Outcome 2 Total

2005 2004 2005 2004 2005 2004
$'000 $'000 $'000 $'000 $'000 $'000
Administered Revenues
Audit services received free of charge for
the NHT 65 42 0 0 65 42
Interest 9 6 0 0 9 6
Sales of goods and services 3,467 2,700 0 0 3,467 2,700
Industry contributions 7,400 7,000 0 0 7,400 7,000
Other revenue 3,943 1,304 0 0 3,943 1,304
Total administered revenues 14,884 11,052 0 0 14,884 11,052
Administered Expenses
Grants 337,418 220,168 0 0 337,418 220,168
Suppliers 54,147 46,311 0 0 54,147 46,311
Write-down of assets 32,840 124 0 0 32,840 124
Other 581 938 0 0 581 938
Total administered expenses 424,986 267,541 0 0 424,986 267,541
Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in
calculating the actual Budget Outcome.
333

335

337
AUSTRALIAN GREENHOUSE OFFICE

for the period ended 3 November 2004
3-Nov-04 30-Jun-04
Notes $'000 $'000
Revenues from government 4A 5,742 81,511
Goods and services 4B - 537
Assets recognised for the first time 4C 1,615 0
Other revenues 4D 30 23
Revenues from ordinary activities 7,387 82,071
Expenses from ordinary activities

Employees 5A 6,012 15,720
Suppliers 5B 5,791 36,559

Depreciation and amortisation 5C 75 106
Write-down of assets 5D - 5
Grants 6 10 32,128
Expenses from ordinary activities 11,888 84,518
Net surplus / (deficit) from ordinary activities

before income tax 11 (4,501) (2,447)
Net credit to asset revaluation reserve 11 - -
Total revenues, expenses and valuation

adjustments recognised directly in equity - -
Total changes in equity other than those resulting from

transactions with the Australian Government as owner (4,501) (2,447)


as at 3 November 2004
3-Nov-04 30-Jun-04
Notes $'000 $'000
ASSETS
Financial assets
Cash 7A 3,256 23,099
Receivables 7B 21,099 8,135
Total Financial Assets 24,355 31,234
Infrastructure, plant and equipment 8A,C 136 161
Intangibles 8B,C 2,122 148
Other non-financial assets 8D 3 96
Total non-financial assets 2,261 405
TOTAL ASSETS 26,616 31,639
LIABILITIES
Provisions
Employees 9A 4,970 4,773
Total provisions 4,970 4,773
Payables
Suppliers 10A 4,996 3,414
Grants 10B - 2,301
TOTAL LIABILITIES 9,966 10,488
NET ASSETS 16,650 21,151
EQUITY
Retained Surpluses 11 16,593 21,094
Reserves 11 57 57
TOTAL EQUITY 16,650 21,151

Non-current assets 2,258 309
Non-current liabilities 2,415 2,253
The above statement should be read in conjunction with the accompanying notes.
339

3-Nov-04 30-Jun-04
Notes $'000 $'000
Cash received
Cash from the OPA - 22,791
Goods and services
Non-Government 152 1,161
Net GST received from ATO 2,366 4,978
Cash used
Employees 5,816 15,434
Suppliers 4,329 39,284
Grants 2,464 33,526
Cash transferred to the OPA 15,000 -
Net cash from / (used by) operating activities 12 (19,434) 21,881
Cash used
Purchase of infrastructure, plant and equipment - 70
Purchase of intangibles 409 -
Total cash used 409 70
Net cash used by investing activities (409) (70)
FINANCING ACTIVITIES
Net cash from / (used by) financing activities - -
Net increase / (decrease) in cash held (19,843) 21,811

Cash at the beginning of the reporting period 23,099 1,288
Cash at the end of the reporting period 7A 3,256 23,099


3-Nov-04 30-Jun-04
$'000 $'000
BY TYPE
Commitments
Operating leases (i) - 83
Grant commitments (ii) 21 105,105
Other commitments (iii) 4,278 12,784
Commitments receivable (383) (10,123)

Net commitments 3,916 107,849
BY MATURITY
One year or less - 31
From one to five years - 45
Total Operating lease commitments by maturity - 76
Grant commitments
One year or less 19 60,299
From one to five years - 35,251
Total Grant commitments by maturity 19 95,550
Other commitments
From one to five years 26 4,212
Total Other commitments by maturity 3,897 12,223
Net commitments by maturity 3,916 107,849
NB: Commitments are GST inclusive where relevant.
(i) Operating leases included are effectively non-cancellable and comprise:
Nature of lease
Agreements for the provision of motor vehicles to senior executive officers.
General description of leasing arrangement

No contingent rentals exist. There are no renewal or purchase options available to the
Australian Greenhouse Office (AGO).
(ii) Grant amounts payable under agreements in respect of which the grantee has yet to provide
the services required under the agreement.
(iii) Other amounts include amounts to be paid to suppliers and consultants in the future.
The above schedule should be read in conjunction with the accompanying notes.
341

SCHEDULE OF ADMINISTERED ITEMS
3-Nov-04 30-Jun-04
Notes $'000 $'000
Expenses Administered on Behalf of Government

Grants 17 14,865 24,277

Other 17 23 -
Total Expenses Administered on Behalf of Government 14,888 24,277
Assets Administered on Behalf of Government

Financial Assets
Receivables 18 3,515 3,579
Total Assets Administered on Behalf of Government 3,515 3,579
Liabilities Administered on Behalf of Government

Payables
Grants 19 11,070 -
Total Liabilities Administered on Behalf of Government 11,070 -
Net Assets / (Liabilities) Administered on Behalf of Government (7,555) 3,579
Current assets 1,774 988

Current liabilities 11,070 -
Non-current liabilities - -
This schedule should be read in conjunction with the accompanying notes.


3-Nov-04 30-Jun-04
$'000 $'000
Administered Cash Flows
Operating Activities
Cash received
Rendering of services 801 2,178
Other - GST received from ATO - 150
Total cash received 801 2,328
Cash used
Grants payments 4,555 26,437
Net cash used in operating activities ( 3,754) ( 24,109)
Net decrease in cash held ( 3,754) ( 24,109)

Cash from Official Public Account for:
- Appropriations 4,555 26,437
4,555 26,437
Cash to Official Public Account 801 2,328

801 2,328
Cash at the end of the reporting period - -
This schedule should be read in conjunction with the accompanying notes.
343

3-Nov-04 30-Jun-04
Notes $'000 $'000
Administered Commitments
BY TYPE
Commitments
Grant commitments (i) 169,168 68,911
Other commitments (ii) 494 16
Total commitments 169,662 68,927
Commitments receivable (9,850) -

BY MATURITY
Grant commitments
Over five years 2,875 5,482
Total Grant commitments by maturity 159,363 68,911
Other commitments
Total Other commitments by maturity 449 16
NB: Commitments are GST inclusive where relevant.
(i) Grant amounts payable under agreements in respect of which the grantee has yet to provide the
services required under the agreement.
(ii) Other commitments are commitments to suppliers
This schedule should be read in conjunction with the accompanying notes


Statement of Activities Administered on Behalf of Government
The major administered activities of Australian Greenhouse Office are directed towards achieving the
outcome described in note 1 to the financial statements. The major financial activities are the
administration of grants through the States and Territories for the Photovoltaic Rebate Program and to
the States and Northern Territory for the Renewable Remote Power Generation Program. Details of
planned activities for the year can be found in the Portfolio Budget and Portfolio Additional Estimates
Statements for 2004-05 which have been tabled in Parliament.
This schedule should be read in conjunction with the accompanying notes
345

TABLE OF CONTENTS
Note Description

2 Adoption of AASB Equivalents to International Financial Reporting Standards from
2005-2006
3 Abolishment of the AGO as an agency
6 Grants
7 Financial Assets
9 Provisions
10 Payables
11 Equity
15 Actual Staffing Levels at the Reporting Date
22 Appropriations
24 Reporting of Outcomes and Outputs


Note 1 – Summary of Significant Accounting Policies
1.1 Objectives of the Australian Greenhouse Office
The Australian Greenhouse Office (AGO) was established on 24 April 1998 as a prescribed agency under the
Financial Management and Accountability Act 1997 (FMA Act 1997) to be the lead Commonwealth agency on
greenhouse matters. In March 2000, the AGO was established as an Executive Agency under the Public Service
Act 1999.
The objective of the AGO is to meet Australia’s international greenhouse commitments through effective domestic
action in a way that advances our national interests in terms of:
- Ecologically sustainable development;
- Playing our part globally;
- Supporting efficient and competitive industries; and
- Promoting employment.
The AGO is structured to meet the following outcome:

"Australians working together to meet the challenge of climate change."
AGO activities contributing toward this outcome are classified as either departmental or administered.
Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the
AGO in its own right. Administered activities involve the management or oversight by the AGO, on behalf of the
Government, of items controlled or incurred by the Government.
The financial statements are required by section 49 of the FMA Act 1997 and are a general purpose financial
report.
The statements have been prepared in accordance with:
- Finance Minister's Orders (or FMOs, being the Financial Management and Accountability Orders (Financial
Statements for reporting periods ending on or after 30 June 2004));
- Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting
Standards Board; and
- Consensus Views of the Urgent Issues Group.
The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and
are in accordance with historical cost convention, except for certain assets, which, as noted, are at valuation.
Except where stated, no allowance is made for the effect of changing prices on the results or the financial
position.
347

Note 1 – Summary of Significant Accounting Policies (Continued)
1.2 Basis of Accounting (Continued)
Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that
future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. However,
assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless
required by an Accounting Standard. Liabilities and assets which are unrecognised are reported in the Schedule
of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies).
Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow
or consumption or loss of economic benefit has occurred and can be reliably measured.
Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered
Items and related notes are accounted for on the same basis and using the same policies as for Agency items,
except where otherwise stated at Note 1.16.
1.3 Revenue
(a) Revenues from Government
Amounts appropriated for Departmental outputs appropriations for the year (less any current year savings and
reductions) are recognised as revenue, except for certain amounts which relate to activities that are reciprocal in
nature, in which case revenue is recognised only when it has been earned.
Appropriations receivable are recognised at their nominal amounts.
(b) Resources Received Free of Charge
Services received free of charge are recognised as revenue when and only when a fair value can be reliably
determined and the services would have been purchased if they had not been donated. Use of those resources
is recognised as an expense.


1.3 Revenue (Continued)
(c) Other Revenue
Revenue from the sale of goods is recognised upon the delivery of goods to customers.
Revenue from rendering of services is recognised by reference to the stage of completion of contracts or other
agreements to provide services. The stage of completion is determined according to the proportion that costs
incurred to date bear to the estimated total costs of the transaction.
Receivables for goods and services are recognised at the nominal amounts due less any provision for bad and
doubtful debts. Collectibility of debts is reviewed at balance date. Provisions are made when collectibility of the
debt is judged to be less rather than more likely.
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
relevant asset.
Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.
Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have
not been settled.
Liabilities for wages and salaries (including non-monetary benefits), annual leave and sick leave are measured at
their nominal amounts. Other employee benefits expected to be settled within 12 months of the reporting date
are also measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to
be made in respect of services provided by employees up to the reporting date.
(a) Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has
been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by
employees of the AGO is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees' remuneration, including the AGO's employer
superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid
out on termination.
The liability for long service leave has been determined by reference to the work of an actuary as at 3 November
2004. The estimate of the present value of the liability takes into account attrition rates and pay increases through
promotion and inflation.
349

1.4 Employee Benefits (Continued)
(b) Separation and Redundancy
Provision is made for separation and redundancy benefit payments. AGO has developed a detailed formal plan
for the terminations and has informed those employees affected that it will carry out the terminations.
(c) Superannuation
Staff of AGO are members of the Commonwealth Superannuation Scheme, Public Sector Superannuation
Scheme and Australian Government Employees Superannuation Trust. The liability for their superannuation
benefits is recognised in the financial statements of the Australian Government and is settled by the Australian
Government in due course.
AGO makes employer contributions to the Australian Government at rates determined by an actuary to be
sufficient to meet the cost to the Government of the superannuation entitlements of the AGO's employees, or by
rates required by legislation, as applicable.
The liability for superannuation recognised as at 3 November 2004 represents outstanding contributions for the
final fortnight of the period.
1.5 Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the
lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets. In
operating leases, the lessor effectively retains substantially all such risks and benefits.
Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from
the leased assets. The net present value of future net outlays in respect of surplus space under non-cancellable
lease agreements is expensed in the period in which the space becomes surplus.
1.6 Cash
Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is
recognised at its nominal amount.
1.7 Other Financial instruments
(a) Trade Creditors
Trade Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities
will be settled. Liabilities are recognised to the extent that the goods or services have been received (and
irrespective of having being invoiced).


1.7 Other Financial instruments (Continued)
(b) Contingent Liabilities and Contingent Assets

Contingent Liabilities / (assets) are not recognised in the Statement of Financial Position but are discussed in the
relevant schedules and notes. They may arise from uncertainty as to the existence of a liability / (asset), or
represent an existing liability / (asset) in respect of which settlement is not probable or the amount cannot be
reliably measured. Remote contingencies are part of this disclosure. Where settlement becomes probable, a
liability / (asset) is recognised. A liability / (asset) is recognised when its existence is confirmed by a future event,
settlement becomes probable or reliable measurement becomes possible.
The AGO is unaware of any unquantifiable contingencies.
1.8 Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value
of assets transferred in exchange and liabilities undertaken.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their
fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative
arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at
which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.
Asset Recognition Threshold
Purchases of infrastructure, plant and equipment are recognised initially at cost in the Statement of Financial
Position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than
when they form part of a group of similar items which are significant in total).
Revaluations
Basis
Plant and equipment are carried at fair value except for assets purchased since the last revaluation which are
carried at cost. Valuations undertaken in any year are as at 30 June.
Fair values for Plant & Equipment is determined such that fair value is measured at market selling price.
Under fair value, assets which are surplus to requirements are measured at their net realisable value.
Frequency
Plant and equipment are revalued progressively in successive three-year cycles. All current cycles commenced
on 1 July 2003.
351

1.9 Infrastructure, Plant and Equipment (Continued)
Conduct
All valuations are conducted by an independent qualified valuer.
Depreciation and Amortisation
Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated
useful lives to the AGO using, in all cases, the straight line method of depreciation.
Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are
recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-
estimated for a change in prices only when assets are revalued.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
2005 2004
Computer hardware 2-5 years 3-5 years
Plant and equipment 2-10 years 3-10 years
Computer software 5 years 5 years
The aggregate amount of depreciation and amortisation allocated for each class of asset during the reporting
period is disclosed in Note 5C.
1.10 Impairment of Non-Current Assets
Non-current assets carried at up to date fair value at the reporting date are not subject to impairment testing.
Non-current assets carried at cost, which are not held to generate net cash inflows, have been assessed for
indications of impairment. Where indications of impairment exist, the carrying amount of the asset is compared to
the higher of its net selling price and depreciated replacement cost and is written down to that value if greater. No
write-down to recoverable amount was required (2004: Nil).
1.11 Intangibles
AGO'S intangibles comprise internally developed software for internal use. These assets are carried at cost.
Software is amortised on a straight-line basis over its anticipated useful life. The useful life of AGO's software is
5 years (2004: 5 years).
All software assets were assessed for indications of impairment as at 3 November 2004. None were found to be
impaired.
1.12 Taxation
The AGO is exempt from all forms of taxation except fringe benefits tax (FBT) and goods and services tax (GST).
Revenues, expenses and assets are recognised net of GST:

- except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
- except for receivables and payables.


Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction.
Foreign currency receivables and payables are translated at the exchange rates current as at balance date.
Associated currency gains and losses are not material.
1.14 Insurance
The AGO has insured for risks through the Government's insurable risk managed fund, called 'Comcover'.
Workers compensation is insured through the Government's Comcare Australia.
1.15 Period of Financial Statements
These financial statements cover the period 1 July 2004 - 3 November 2004, a four month period. This is due to
the Administrative Arrangement Orders whereby AGO ceased to exist as an FMA agency from midnight on 3
November 2004 and became a division of the Department of the Environment and Heritage.
1.16 Report of Administered Activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of
Administered Items and related Notes.
Except where otherwise stated below, administered items are accounted for on the same basis and using the
same policies as for Agency items, including the application of Accounting Standards, Accounting Interpretations
and UIG Consensus Views.
Administered Cash Transfers to and from Official Public Account (OPA)
Revenue collected by AGO for use by the Government rather than the agency is Administered Revenue.
Collections are transferred to the OPA maintained by the Department of Finance and Administration. Conversely,
cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government.
These transfers to and from the OPA are adjustments to the administered cash held by AGO on behalf of the
Government and reported as such in the Statement of Cash flows in the Schedule of Administered Items and in
the Administered Reconciliation Table in Note 20. Thus the Schedule of Administered Items largely reflects the
Government's transactions, through AGO, with parties outside the Government.
Revenue
All administered revenues are revenues relating to the core operating activities performed by AGO on behalf of
the Government.
Receivables and Provision for Doubtful Debts
All receivables are not overdue. Provision is made for bad and doubtful debts where collection of receivables or
part thereof is judged to be less rather than more likely. In rare circumstances, loan repayment maybe waived.
Grants
AGO administers a number of grant programs on behalf of the Government.
Grant liabilities are recognised to the extent that:

(i) the services required to be performed by the grantee have been performed; or
(ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is
recorded when the Government enters into an agreement to make these grants but services have not been
performed or criteria satisfied.
353

Note 2- Adoption of AASB Equivalents to International Financial Reporting Standards from 2005-2006
The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to apply
from 2005-06. The new standards are the AASB Equivalents to International Financial Reporting Standards
(IFRSs) which are issued by the International Accounting Standards Board. The new standards cannot be
adopted early. The standards being replaced are to be withdrawn with effect from 2005-06, but continue to apply
in the meantime.
The purpose of issuing AASB Equivalents to IFRSs is to enable Australian entities reporting under the
Corporations Act 2001 to be able to more readily access overseas capital markets by preparing their financial
reports according to accounting standards more widely used overseas.
For-profit entities complying fully with the AASB Equivalents will be able to make an explicit and unreserved
statement of compliance with IFRSs as well as with the AASB Equivalents.
It is expected that the Finance Minister will continue to require compliance with the Accounting Standards issued
by the AASB, including the AASB Equivalents to IFRSs, in his Orders for the Preparation of Agency financial
statements for 2005-06 and beyond.
The AASB Equivalents contain certain additional provisions which will apply to not-for-profit entities, including
Australian Government agencies. Some of these provisions are in conflict with the IFRSs and therefore AGO will
only be able to assert compliance with the AASB Equivalents to the IFRSs.
Existing AASB standards that have no IFRS equivalent will continue to apply. Including in particular AAS 29
Financial Reporting by Government Departments.
Accounting Standard AASB 1047 Disclosing the impact of Adopting Australian Equivalents to IFRSs requires
that the financial statements for 2003-04 disclose:
* an explanation of how the transition to the AASB Equivalents is being managed, and
* a narrative explanation of the key differences in accounting policies arising from the transition.
The purpose of this note is to make these disclosures.
Management of the transition to AASB Equivalents to IFRSs
The AGO has taken the following steps for the preparation towards the implementation of AASB Equivalents:
The AGO's Audit Committee is tasked with oversight of the transition to the AASB Equivalents to IFRSs. The
Chief Finance Officer is formally responsible for the project and reports regularly to the Audit Committee on
progress against the formal plan approved by the Committee.


(Continued)
Management of the transition to AASB Equivalents to IFRSs (Continued)
The plan requires the following key steps to be undertaken and sets deadlines for their achievement:
* Identification of all major accounting policy differences between current AASB standards and the AASB
Equivalents to IFRSs progressively to 30 June 2004.
* Identification of systems changes necessary to be able to report under the AASB Equivalents,
including those necessary to enable capture of data under both sets of rules for 2004-05, and
the testing and implementation of those changes.
* Preparation of a transitional balance sheet as at 1 July 2004, under AASB Equivalents, as part of the
Department of Environment and Heritage.
* Preparation of a AASB Equivalent balance sheet at the same time as the 30 June 2005 statements are
prepared.
* Meeting reporting deadlines set by Department of Finance and Administration for 2005-06 balance
sheet under AASB Equivalent Standards.
* The plan also addresses the risks to successful achievement of the above objectives and includes
strategies to keep implementation on track to meet deadlines.
* To date, all major accounting and disclosure differences and system changes have been identified and
the required system changes have been made.
* Consultants have been engaged where necessary to assist with each of the above steps.
Major changes in accounting policy
Changes in accounting policies under AASB Equivalents are applied retrospectively i.e. as if the new policy had
always applied. This rule means that a balance sheet prepared under the AASB Equivalents must be made as at
1 July 2004, except as permitted in particular circumstances by AASB 1 First-time Adoption of Australian
Equivalents to International Financial Reporting Standards. This will enable the 2005-06 financial statements to
report comparatives under the AASB Equivalents also.
Infrastructure, plant and equipment
It is expected that the Finance Minister's Orders will require infrastructure, plant and equipment assets carried at
valuation in 2003-04 to be measured at up-to-date fair value from 2005-06. This differs from the accounting
policies currently in place for these assets which, up to and including 2003-04, have been revalued progressively
over a three year cycle and which currently include assets at cost (for purchases since the commencement of a
cycle).
355

(Continued)
Infrastructure, plant and equipment (Continued)
However, it is important to note that the Finance Minister requires these assets to be measured at up-to-date fair
values as at 30 June 2005. Further, the transitional provisions in AASB 1 will mean that the values at which
assets are carried as at 30 June 2004 under existing standards will stand in the transitional balance sheet as at 1
July 2004.
Intangible Assets
The AGO currently recognises internally-developed software assets on the cost basis. The carrying amounts
include amounts that were originally measured at deprival valuation and subsequently deemed to be cost under
transitional provisions available on the introduction of AAS 38 Revaluation of Non-Current Assets in 2000-01 and
AASB 1041 of the same title in 2001-02.
The AASB Equivalent on Intangibles does not permit intangibles to be measured at valuation unless there is an
active market for the intangible. AGO's internally-developed software is specific to the needs to the AGO and is
not traded. Accordingly, the AGO will derecognise the valuation component of the carrying amount of these
assets on adoption of the AASB Equivalent.
Impairment of Non-current Assets
AGOs policy on impairment of non-current assets is at note 1.10.
Under the new AASB Equivalent standard, these assets will be subject to assessment for impairment and, if
there are indications of impairment, measurement of any impairment. (Impairment measurement must also be
done, irrespective of any indications of impairment, for intangible assets not yet available for use). The
impairment test is that the carrying amount of an asset must not exceed the greater of (a) its fair value less costs
to sell and (b) its value in use. 'Value in use' is the net present value of net cash inflows for for-profit assets of the
AGO and depreciated replacement cost for other assets which would be replaced if the AGO were deprived of
them.
The most significant changes are that, for the AGO's for-profit assets, the recoverable amount is only generally to
be measured where there is an indication of impairment and that assets carried at up-to-date fair value, whether
for-profit or not, may nevertheless be required to be written down if costs to sell are significant.
Employee Benefits
The provision for long service leave is measured at the present value of estimated future cash outflows using
market yields as at the reporting date on national government bonds.
Under the new AASB Equivalent standard, the same discount rate will be used unless there is a deep market in
high quality corporate bonds, in which case the market yield on such bonds must be used.


Note 3 - Abolishment of the AGO as an agency
The Australian Greenhouse Office was abolished as an Execuitve Agency under the Public Service
Act 1999 on 26 October 2004 and as a prescribed agency under the Financial Management and
Accountability Act 1997 on 3 November following Ministry changes announced at the recent election.
Under the new arrangements the Australian Greenhouse Office will become a division of the
Department of the Environment and Heritage.
357

3-Nov-04 30-Jun-04
$'000 $'000
Note 4: Operating Revenues
Note 4A - Revenues from Government

Resources received free of charge 85 48
Total Revenues from government 5,742 81,511
Note 4B - Goods and Services

Goods - 16
Services - 521
Total sales of goods and services - 537
Provision of goods to:

External entities - 16
Total sales of goods - 16

External entities - 521
Total rendering of services - 521
Cost of sales of goods - 16
Note 4C - Assets recognised for the first time 1,615 -

Total assets recognised for the first time 1,615 -
In previous financial years the AGO has not capitalised all expenditure on internally developed
software due to a misunderstanding on the nature of the expenditure. The error had the effect of
understating intangibles by $1.615 million as at 30 June 2004.
Note 4D - Other Revenues

Refunds of payments made in prior years 30 23
Total other revenues 30 23


3-Nov-04 30-Jun-04
$'000 $'000
Note 5: Operating Expenses
Note 5A - Employee Expenses

Wages and Salary 3,741 10,641
Superannuation 733 1,779
Leave and other entitlements 889 1,967
Separation and redundancy 147 470
Other employee expenses 461 744
Worker compensation premiums 41 119
Note 5B - Supplier Expenses

Goods from external entities 697 2,534
Services from related entities 118 5,950
Services from external entities 4,617 26,886
Operating lease rentals * 359 1,189
Total supplier expenses 5,791 36,559
Note 5C - Depreciation and Amortisation

Depreciation of infrastructure, plant and equipment 25 60
Amortisation of intangibles - computer software 50 46
Total depreciation and amortisation 75 106
The aggregate amounts of depreciation and amortisation expensed during

the reporting period for each class of depreciable asset are as follows:
Plant and equipment 13 27
Computer hardware 12 33
Computer software 50 46
Note 5D - Write-Down of Assets

Financial Assets
Bad and doubtful debts expense - 5
Total write down of assets - 5
359

3-Nov-04 30-Jun-04
$'000 $'000
Note 6 - Grants
Grants to non-profit institutions - 1,120
Grants to other sectors of the Commonwealth 10 3,111
Grants to profit making entities - 22,484
Grants to state and territory governments - 3,977
Grants to overseas entities - 630
Grants to universities - 806
Total grants 10 32,128
Note 7 - Financial Assets
Note 7A - Cash
Cash at bank - Departmental 3,256 23,099
Total cash 3,256 23,099
Note 7B - Receivables
Goods and Services 556 677
GST receivable from the Australian Taxation Office 317 2,232
Appropriation Receivable - Cash held in OPA 20,226 5,226
All receivables are current assets.

Overdue by:
Less than 30 days - 136
30 - 60 days - 38
436 178

Overdue by:
Total provision for doubtful debts 4 4


3-Nov-04 30-Jun-04
$'000 $'000
Note 8 - Non-Financial Assets
Note 8A - Infrastructure, Plant and Equipment

- at cost 70 70
- Accumulated depreciation ( 16) ( 8)
54 62
- at 2002-03 valuation (fair value) 151 151

- Accumulated depreciation ( 69) ( 52)
82 99
Total Infrastructure, Plant and Equipment
(non-current) 136 161
All revaluations are independent and conducted in accordance with the revaluation policy stated in
Note 1. In 2002-03, the revaluations were conducted by an independent valuer Allan B. Graham,
Certified Practising Valuer (Australian Valuation Office).
In 2002-03, a revaluation increment of $57,000 for plant and equipment was made to the asset
revaluation reserve.
Note 8B - Intangibles
Computer Software
Internally developed - in use 969 226
- Accumulated amortisation ( 205) ( 78)
764 148
Internally Developed Software - WIP 1,358 0
Total intangibles (non-current) 2,122 148
Note 8C - Analysis of Infrastructure, Plant and Equipment
TABLE A - Reconciliation of the opening and closing balances of Infrastructure, plant and
equipment and intangibles
Infrastructure,
Plant and Intangibles
Item Equipment
$'000 $'000
As at 1 July 2004
Gross book value 221 226
Accumulated depreciation / amortisation (60) (78)
Net book value 161 148
Additions
By purchase - 409
Assets recognised for the first time (refer Note 4C) - 1,615
Depreciation/amortisation expense (25) (50)
As at 3 November 2004
Gross book value 221 2,250
Net book value 136 2,122
361

Note 8 - Non-Financial Assets (Continued)
Note 8C - Analysis of Infrastructure, Plant and Equipment (Continued)
TABLE B - Assets at Valuation
Infrastructure,
Plant and
Item Equipment Total
$'000 $'000
Gross value 151 151
As at 30 June 2004
Gross value 151 151
All infrastructure, plant and equipment are non-current assets.
3-Nov-04 30-Jun-04
$'000 $'000
Note 8D - Other Non-Financial Assets
Prepayments 3 96


3-Nov-04 30-Jun-04
$'000 $'000
Note 9 - Provisions
Note 9A - Employee Provisions

Salaries and wages 493 464
Leave 4,394 4,224
Superannuation 83 85
Aggregate employee entitlement liability 4,970 4,773
Aggregate employee benefit liability
and related on-costs 4,970 4,773
Current 2,555 2,520
Non-Current 2,415 2,253
Note 10 - Payables
Note 10A - Supplier Payables

Total supplier payables 4,996 3,414
All supplier payables are current liabilities.
Note 10B - Grants Payable

Grants payable - 2,301
Total grants payable - 2,301
All grants payables are current liabilities.
363

Note 11 - Equity
Item Accumulated Results Asset Revaluation Reserves TOTAL EQUITY
3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04

$'000 $'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 21,094 23,541 57 57 21,151 23,598
Net surplus/(deficit) (4,501) (2,447) - - (4,501) (2,447)
Closing balance 16,593 21,094 57 57 16,650 21,151

3-Nov-04 30-Jun-04
$'000 $'000
Note 12 - Cash flow Reconciliation
a) Reconciliation of cash per Statement of Financial Position to Statement of Cash Flows
Cash at year end per Statement of Cash Flows 3,256 23,099
Statement of Financial Position items comprising

above cash: 'Financial Assets - Cash' 3,256 23,099
Reconciliation of net surplus / (deficit) to net cash
from operating activities
Net deficit ( 4,501) ( 2,447)

Assets recognised for the first time ( 1,615) -
Depreciation / amortisation 75 106
(Increase) / decrease in net receivables ( 12,964) 21,796
(Increase) / decrease in prepayments 93 ( 42)
Increase in employee provisions 197 286
Increase in suppliers payables 1,582 835
Increase / (decrease) in grant payables ( 2,301) 1,347
Net cash from / (used by) operating activities ( 19,434) 21,881
365

3-Nov-04 30-Jun-04
Note 13 - Executive Remuneration
The number of executives who received or were

due to receive total remuneration of $100,000 or more
$ 100,000 to $ 110,000 - -
$ 110,001 to $ 120,000 - 1
$ 120,001 to $ 130,000 - -
$ 130,001 to $ 140,000 1 -
$ 140,001 to $ 150,000 - 2
$ 150,001 to $ 160,000 - -
$ 160,001 to $ 170,000 - 1
$ 170,001 to $ 180,000 - 1
$ 190,001 to $ 200,000 - -
$ 210,001 to $ 220,000 - 2
$ 220,001 to $ 230,000 - -
$ 250,001 to $ 260,000 - -
$ 260,001 to $ 270,000 - -
$ 290,001 to $ 300,000 - -
$ 300,001 to $ 310,000 - 1
The aggregate amount of total remuneration of

executive officers shown above $ 139,010 $ 1,470,694
The aggregate amount of separation and redundancy/

termination benefit payments during the year to executive
officers shown above Nil Nil
The number of executives who received or were due to receive remuneration of $100,000 or more is
less than the prior year as these financial statements are for a period of less than one year
3-Nov-04 30-Jun-04
$ $
Note 14 - Remuneration of Auditors
Financial statement audit services are provided free of

charge to the AGO. The fair value of the services
provided was: 85,000 68,000
No other services were provided by the Auditor-General.
3-Nov-04 30-Jun-04
Note 15 - Actual Staffing Levels at the Reporting Date
The staffing levels for the AGO at the reporting date were: 170 167

Note 16 - Financial Instruments

a) Terms, Conditions and Accounting Policies
Financial Instrument Notes Accounting Policies and Methods (including recognition Nature of Underlying Instrument (including significant
criteria and measurement basis) terms & conditions affecting the amount, timing and
certainty of cash flows)
Financial Assets Financial assets are recognised when control over future
economic benefits is established and the amount of benefit can
be reliably measured.
Cash 7A Cash is recognised at its nominal amount. Interest is Under banking arrangements in place up to 1 July 2003, monies in
credited to revenue as it accrues. AGO's bank accounts were swept into the Official Public Account
nightly and earned interest on the daily balance at rates based on
money market call rates. Since 1 July 2003, no interest is earned on
the AGO's bank balances.
Receivables for goods 7B These receivables are recognised at the nominal amounts due All receivables with entities external to the Commonwealth are
and services (gross) less any provision for bad and doubtful debts. Collectability of on credit terms net 30 days (2003: 30 days).
debts is reviewed at balance date. Provisions are made when
collection of the debt is judged to be less rather than more likely.
Appropriations Receivable - 7B These receivables are recognised at their nominal amounts. Appropriations receivable undrawn are appropriations controlled by
Cash held in Official Public the AGO but held in the Official Public Account under the
Account (OPA) Government’s just-in-time drawdown arrangements.
Financial Liabilities Financial liabilities are recognised when a present obligation to

another party is entered into and the amount of the liability can
Trade Creditors and 10A & 10B Creditors and accruals are recognised at their nominal amounts, All creditors are entities that are not part of the Commonwealth
Grants Payable being the amounts at which the liabilities will be settled. legal entity. Settlement is usually made net 30 days.
Liabilities are recognised to the extent that the goods or services
367
have been received (and irrespective of having been invoiced).

Note 16 - Financial Instruments (cont.)
b) Interest rate Risk
Financial Floating Interest Non- Weighted Average

Instrument Notes Rate Interest Bearing Total Effective Interest Rate
3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04
$'000 $'000 $'000 $'000 $'000 $'000 % %
Financial Assets
Cash at bank 7A - - 3,256 23,099 3,256 23,099 n/a n/a
Receivables for goods and services (gross) 7B - - 877 2,909 877 2,909 n/a n/a
Appropriations Receivable - Cash held in OPA 7B - - 20,226 5,226 20,226 5,226 n/a n/a

Total - - 24,359 31,234 24,359 31,234
Total Assets 26,616 31,639
Trade creditors 10A - - 4,996 3,414 4,996 3,414 n/a n/a
Grants payable 10B - - - 2,301 - 2,301 n/a n/a
Total - - 4,996 5,715 4,996 5,715
Total Liabilities 9,966 10,488

Note 16 - Financial Instruments (Cont.)
c) Net Fair Values of Financial Assets and Liabilities
03-Nov-04 30-Jun-04
Notes Total Aggregate Total Aggregate
Carrying Net fair Carrying Net fair
Amount Value Amount Value
$'000 $'000 $'000 $'000
Departmental
Financial Assets
Cash at bank 7A 3,256 3,256 23,099 23,099

Receivables for goods and services (net) 7B 873 873 2,909 2,909
Appropriations receivable 7B 20,226 20,226 5,226 5,226
Total Financial Assets 24,355 24,355 31,234 31,234
Financial Liabilities (Recognised)
Trade creditors 10A 4,996 4,996 3,414 3,414

Grants payable 10B - - 2,301 2,301
Total Financial Liabilities (Recognised) 4,996 4,996 5,715 5,715
The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying
amounts.
The net fair values for trade creditors and grants payable are short term in nature and are approximated
by their carrying amounts.
d) Credit Risk Exposures
The AGO's maximum exposures to credit risk at reporting date in relation to each class of recognised
financial assets is the carrying amount of those assets as indicated in the Statement of Financial Position.
AGO has no significant exposures to any concentrations of credit risk.
All figures for credit risk referred to do not take into account the value of any collateral or other security.
369

3-Nov-04 30-Jun-04
$'000 $'000
Note 17 - Expenses Administered on Behalf of Government
Grants
Grants to/through state and territory governments 7,526 24,277
Grants to non-profit institutions 182 -
Grants to other sectors of the Commonwealth 5,125 -
Grants to profit making entities 1,736 -
Grants to overseas entities 99 -
Grants to universities 160 -
Grants to individuals 37 -
Total Grants 14,865 24,277
Other
Consultant fees 23 -
Total Other 23 -
Note 18 - Assets Administered on Behalf of Government
Financial Assets
Receivables
Loans 5,348 6,149
Less: Provision for doubtful debts (2,570) (2,570)
GST receivable 525
Others 212 -
Total Receivables (net) administered on behalf of
Government 3,515 3,579
All receivables are not overdue.
The loan receivable represents the funding payments to IIF Investments Pty Ltd less repayments under
the Renewable Energy Equity Fund (REEF) Program. The loan agreement was negotiated between IIF
Investments Pty Ltd and the Industry Research and Development Board (IRD) on behalf of the
Commonwealth under the REEF Program. The Annual Report of IIF Investments Pty Ltd provides further
information on the investments under the REEF Program.
Fundamental Error in Receivables
In the previous years, (pre 2003-04) the AGO has not reported a loan receivable covering funding
payments to IIF Investments Pty Ltd under the REEF Program due to a misunderstanding of the
implications of the loans, provided by IIF Investments Pty Ltd, on the AGO's Administered
Statements. Following the return of $2.178 million and consideration of the accounting treatment
in 2003-04, the AGO has taken up the loan receivable in the Administered Statements.
The receivables for 2004 included $6.324 million net loan receivables that had not been recognised
in 2003. This error had the effect of understating receivables and assets administered on behalf of
Government by $6.324 million as at 30 June 2003 and understating closing administered assets less
administered liabilities as at 30 June 2003 by $6.324 million. Restated financial information for 2004
and 2003 is presented below as if the error had not been made:


3-Nov-04 30-Jun-04
$'000 $'000
Note 19 - Liabilities Administered on Behalf of Government
Payables
Grants 11,070 -
Total Liabilities Administered on Behalf of Government 11,070 -
All liabilities are expected to be settled within 12 months of balance date.
Note 20 - Administered Reconciliation Table
Opening administered assets less administered liabilities

as at 1 July 3,579 (2,010)
Less: Administered expenses (14,888) (24,277)
Administered transfers to/from Government
Plus: Appropriation transfers from OPA 4,555 26,437
Plus: Resources transferred from departmental funds - 5,757
Less: Transfers to OPA (801) (2,328)
Closing administered assets less administered liabilities
as at 3 November 2004 (7,555) 3,579
371

Note 21 - Administered Financial Instruments
a) Terms, Conditions and Accounting Policies

Financial Instrument Notes Accounting Policies and Methods (including recognition Nature of underlying instrument (including significant
criteria and measurement basis) terms & conditions affecting the amount, timing and
certainty of cash flows)
Financial Assets Financial assets are recognised when control over future
economic benefits is established and the amount of benefit can
Receivables - Loans 18 These receivables are recognised at the nominal amounts due The receivable represents the limited recourse loan receivable
less any provision for bad and doubtful debts. Collectability of under the Renewable Energy Equity Fund (REEF) Program.

Receivables - GST and 18 These receivables are recognised at the nominal amounts due
Others less any provision for bad and doubtful debts. Collectability of
Financial Liabilities Financial liabilities are recognised when a present obligation to

another party is entered into and the amount of the liability can
Payables 19 Grant payables are recognised at their nominal amounts, being All grant payables are with entities that are not part of the
the amounts at which the liabilities will be settled. Grant Commonwealth legal entity. Settlement is usually made net
liabilities are recognised to the extent that grant milestones 30 days. (2003: net 30 days).
have been met (irrespective of having been invoiced).
Note 21 - Administered Financial Instruments (cont.)
b) Interest rate Risk
Financial Floating Interest Non- Weighted Average

Instrument Notes Rate Interest Bearing Total Effective Interest Rate
3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04

$'000 $'000 $'000 $'000 $'000 $'000 % %
Financial Assets
Receivables - loans (gross) 18 - - 5,348 6,149 5,348 6,149 n/a n/a
Receivables - GST & others ( 18 - - 737 - 737 - n/a n/a
Total - - 6,085 6,149 6,085 6,149
Payables - Grants 19 - 11,070 - 11,070 - n/a n/a
Total - - 11,070 - 11,070 -
Total Liabilities 11,070 -
373

Note 21 - Administered Financial Instruments (Cont.)
c) Net Fair Values of Administered Financial Assets and Liabilities
3-Nov-04 30-Jun-04
Notes Total Aggregate Total Aggregate
Carrying Net fair Carrying Net fair
Amount Value Amount Value
$'000 $'000 $'000 $'000
Administered
Financial Assets (Recognised)

Receivables - Loans (net) 18 2,778 2,778 3,579 3,579
Receivables - GST and Others 18 737 737 - -
Total Financial Assets (Recognised) 3,515 3,515 3,579 3,579

Payables - Grants 19 11,070 11,070 - -
Total Financial Liabilities (Recognised) 11,070 11,070 - -
Financial Assets
The net fair values of loans receivable are carried at cost which is above their net fair value.
The net fair values for grant and other payables are short term in nature and are approximated by
their carrying amounts.
d) Credit Risk Exposure
The Government's maximum exposures to credit risk at reporting date in relation to each class of
recognised financial assets is the carrying amount of those assets as indicated in the Schedule of
Administered items.
The Government has no significant exposures to any concentrations of credit risk.


Note 22 - Appropriations
Note 22A - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund (Appropriations) from Acts 1 and 3
Administered Departmental
Particulars Expenses Outputs Total
Period ended 3 November 2004 $ $ $
Balance carried from previous year - 27,734,637 27,734,637
Adjusted balance carried from previous period - 27,734,637 27,734,637
Appropriation Act (No. 1) 2004-2005 43,457,000 44,719,000 88,176,000
Adjustment of appropriations on change of entity function (FMAA s32) (41,012,430) (39,062,374) (80,074,804)
Sub-total 2004-05 Annual Appropriation 2,444,570 5,656,626 8,101,196
Appropriations to take account of recoverable GST (FMAA s30A) 239,748 451,260 691,008
Annotations to "net appropriations" (FMA Act section 31)1
- 152,794 152,794
Total Appropriations available for payments 2,684,318 33,995,317 36,679,635
Payments made (GST inclusive) (2,684,318) (10,195,350) (12,879,668)
Balance of Authority to draw Cash from the Consolidated Revenue
fund for Ordinary Annual Service Appropriations - 23,799,967 23,799,967
Represented by:
Cash at bank and on hand - 3,255,720 3,255,720
Add: Appropriations not drawn from the OPA - 20,226,193 20,226,193
Add: Other receivables - Net GST Receivable from the ATO - 318,054 318,054
Total - 23,799,967 23,799,967
Reconciliation for Appropriation Acts ( Nos. 1 and 3 )
Paid to the AGO from the OPA 2,444,570 5,656,626 8,101,196
Add: Finance Minister reduction of Apppropriations in current year 41,012,430 39,062,374 80,074,804
Total Appropriation Acts 43,457,000 44,719,000 88,176,000
Administered Departmental
Particulars Expenses Outputs Total
Year ended 30 June 2004 $ $ $
Balance carried from previous year - 29,954,964 29,954,964
Appropriation Act (No. 1) 2003-2004 - 4,612,000 4,612,000
Appropriation Act (No. 3) 2003-2004 - 125,000 125,000
Appropriations to take account of recoverable GST (FMAA s30A) - 929,058 929,058
Annotations to 'net appropriations' (FMAA s31) - 1,136,660 1,136,660
Adjustment of appropriations on change of entity function (FMAA s32) - (1,422,000) (1,422,000)
Total Appropriations available for payments - 35,335,682 35,335,682
Payments made (GST inclusive) - (7,601,045) (7,601,045)
Balance carried to next year - 27,734,637 27,734,637
Represented by:
Cash - 20,276,625 20,276,625
Add: Appropriations not drawn from the OPA - 5,226,193 5,226,193
Add: Other receivables - Net GST Receivable from the ATO - 2,231,819 2,231,819
Total - 27,734,637 27,734,637
375

Note 22 - Appropriations (cont.)
Note 22A - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund
Footnote:
(1) Appropriation acts nos. 1 and 3 (for the ordinary annual services of government) authorise the
supplementation of an agency's annual net appropriation by amounts received in accordance with
agreements made under section 31 of the Financial Management and Accountability Act 1997
between the Finance Minister and the responsible Minister or their delegated or authorised officials.
Doubt has arisen as to whether the Department's Section 31 Agreement covering the period 1 July
1999 to 29 June 2005 was effective because the Department's signatory may not have had an
express delegation or authority for signing the agreement.
The period and amounts covered by the agreement are set out below.
Total
1/7/99 to
00-01 01-02 02-03 03-04 Sub-total 04-05 3/11/04
Receipts
affected 4,980,801 2,027,647 862,696 1,136,660 9,007,804 152,794 9,160,598
Unspent 4,980,801 2,027,647 862,696 1,136,660 9,007,804 152,794 9,160,598
Amount spent
without
appropriation 0 0 0 0 0 0 0
Legal advice indicates that in the circumstances a court is unlikely to conclude that the doubtful
agreement is invalid for the purposes of determining whether there has been a breach of section 83
of the Constitution.


Note 22B - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund (Appropriations) from
Acts 2 and 4
Particulars Administered Total

Outcome 1
SPPs Other
Period ended 3 November 2004 $ $ $
Balance carried from previous year - - -
Appropriation Act (No. 2) 2004-2005 28,388,000 - 28,388,000
Transfer to/from other agencies (FMA Act s32) (26,517,268) - (26,517,268)
Available for payments 1,870,732 - 1,870,732
Payments made (1,870,732) - (1,870,732)
Balance carried to next year - - -
Represented by:
Cash - - -
Appropriations not drawn from the OPA - - -
Total - - -
Reconciliation for Appropriation Acts ( Nos. 2 and 4 ) 2004-2005 - - -
Paid to the AGO from the OPA 1,870,732 - 1,870,732
Not drawn from the OPA -
Total Appropriation Acts 1,870,732 - 1,870,732
377

Note 22C - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Limited Amount)
Appropriation (Supplementary Measures) Administered Departmental Total

Act (No 2.) 1999
Outcome 1 Outcome 1
2005 2004 2005 2004 2005 2004
$ $ $ $ $ $
Balance carried from previous year - - 2,822,108 - 2,822,108 -

Appropriation for reporting period - 74,600,000 - 133,400,000 - 208,000,000
GST credits (FMA s30A) - 149,388 - 5,387,887 - 5,537,275
Adjustments by the Finance Minister - - - - - -
Available for Payments - 74,749,388 - 138,787,887 - 213,537,275
Other annotations - - - -
Payments made - (26,436,590) (2,822,108) (80,713,987) (2,822,108) (107,150,577)
Appropriations credited to Special Accounts - - - - - -
Appropriation lapsed - (48,312,798) - (55,251,792) - (103,564,590)
Balance carried to next period - - - 2,822,108 - 2,822,108
Represented by:
Cash - - - 2,822,108 - 2,822,108
Appropriation Receivable - - - - - -
- - - 2,822,108 - 2,822,108

The total amount appropriated under the Appropriation (Supplementary Measures) Act (No.2) 1999 comprises funding for 7 programs of which the
Department of Environment and Heritage is responsible for 2 and the AGO is responsible for the remaining 5, namely:
Program Purpose
Administered
Photovoltaic Rebate Program Supporting the utilisation of photovoltaic systems on residential buildings and community-use buildings
Renewable Remote Power Generation Program Supporting the use of renewable energy for remote power generation
Departmental
Photovoltaic Rebate Program Refer above
Renewable Remote Power Generation Program Refer above
Alternative Fuels Conversion Program Supporting conversions to CNG or LPG for commercial vehicles that have a GVM equal to or greater than 3.5 tonnes, buses that have a
GVM equal to or greater than 3.5 tonnes, trains and ferries
Renewable Energy Commercialisation Program Supporting the development and commercialisation of renewable energy
To reduce Australia's net greenhouse gas emissions by supporting activities that are likely to result in substantial emission reductions or
Greenhouse Gas Abatement Program substantial sink enhancement

3-Nov-04 30-Jun-04
$'000 $'000
Note 23 - Specific Payment Disclosures
Administered
No 'Act of Grace' payments were made during the reporting

period (2004: No payments made) - -
No waivers of amounts owing to the Commonwealth were made

pursuant to subsection 34(1) of the Financial Management and
Accountability Act 1997. (2004: No waivers made) - -
No ex-gratia payments were made during the reporting period

(2004: No payments made) - -
Departmental
No payments were made under the 'Defective Administeration

Scheme' during the reporting preiod. (2004: No payments made) - -
No payments were made under s73 of the Public Service Act

1999 during the reporting period. (2004: No payments made) - -
379

Note 24 - Reporting of Outcomes and Outputs
AGO attributes shared items to Outputs based on the direct costs that are incurred by these outputs. The
basis of attribution in the following tables is consistent with the basis used for the 2004-05 Budget.
Note 24A - Net Cost of Outcome Delivery
Outcome 1 Total
3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04
$'000 $'000 $'000 $'000
Administered Expenses 14,888 24,277 14,888 24,277

Departmental Expenses 11,888 84,518 11,888 84,518
Total Expenses 26,776 108,795 26,776 108,795
Costs recovered from provision of goods and
services to the non-government sector
Departmental - 560 - 560
Total Costs recovered - 560 - 560
Net Cost of Outcome 26,776 108,235 26,776 108,235

Note 24 - Reporting of Outcomes and Outputs (cont.)
Note 24B - Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs
Output Group 1.1 Output Group 1.2 Output Group 1.3 Output Group 1.4 Output Group 1.5 Outcome 1
Output 1.1.1 Output 1.1.2 Output 1.1.3 Output 1.1.4 Output 1.1.5 Total
3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04 3-Nov-04 30-Jun-04
Outcome 1
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Departmental Expenses
Employees 928 6,712 3,550 2,621 1,534 5,226 - 752 - 409 6,012 15,720
Suppliers 559 10,441 2,812 6,886 2,420 9,357 - 5,203 - 4,672 5,791 36,559
Write-down of assets - - - - - 5 - - - - - 5
Depreciation 8 4 13 - 54 - - 102 - - 75 106
Grants - 15,501 - 600 10 14,864 - 260 - 903 10 32,128
Total departmental Expenses 1,495 32,658 6,375 10,107 4,018 29,452 - 6,317 - 5,984 11,888 84,518
Funded by:
Revenues from Government 388 31,486 2,813 9,754 2,541 28,396 - 6,099 - 5,776 5,742 81,511
Sale of Goods and Services 3 34 18 489 9 36 - 1 - - 30 560
Assets recognised for the first time - - 250 - 1,365 - - - - - 1,615 -
Total departmental revenues 391 31,520 3,081 10,243 3,915 28,432 - 6,100 - 5,776 7,387 82,071
381
24C Major Classes of Administered Expenses by Outcome
Outcome 1 Total
2005 2004 2005 2004
$'000 $'000 $'000 $'000
Administered Expenses
Grants 14,865 24,277 14,865 24,277
Other 23 0 23 0
Total administered expenses 14,888 24,277 14,888 24,277


25(a) Contingent Liabilities and Assets
There are no quantifiable contingencies in either the current or immediately preceding reporting
period, therefore there is no Schedule for such items.
There are no unquantifiable contingencies in either the current or immediately preceding reporting
period.
25(b) Administered Contingent Liabilities and Assets
There are no quantifiable contingencies in either the current or immediately preceding reporting
period, therefore there is no Schedule for such items.
There are no unquantifiable contingencies in either the current or immediately preceding reporting
period.
383

385

NATIONAL OCEANS OFFICE

3 NOV 30 JUN
2004 2004
Notes $'000 $'000

Revenues from Government 4.1 3,240 9,160
Goods and services 4.2 31 272
Total revenues from ordinary activities 3,271 9,432
Expenses from ordinary activities

Employees 5.1 1,374 3,720
Suppliers 5.2 1,106 5,752
Depreciation and amortisation 5.3 50 133
Total expenses from ordinary activities 2,530 9,605
Net surplus/(deficit) 10 741 (173)
Total changes in equity other than those resulting

from transactions with the Australian Government as
owner 741 (173)
The above statements should be read in conjunction with the accompanying notes.
387

3 NOV 30 JUN
2004 2004
Notes $'000 $'000
ASSETS
Financial assets
Cash 6.1 1,332 246
Receivables 6.2 1,260 1,402
Land and buildings 7.1 13 17

Infrastructure, plant and equipment 7.2 60 103
Intangibles 7.3 4 7
Other non-financial assets 7.4 274 200
Total non-financial assets 351 327
LIABILITIES
Provisions
Employees 8.1 706 690
Total provisions 706 690
Payables
Suppliers 9.1 413 202
Total payables 413 202
Total Liabilities 1,119 892
NET ASSETS 1,824 1,083
EQUITY
Contributed equity - -
A cc u m ul at e d s ur p lu s es 1,824 1,083
Total Equity 10.1 1,824 1,083

Non-current assets 77 127
Current liabilities 844 627
Non-current liabilities 275 265


3 NOV 30 JUN
2004 2004
Notes $'000 $'000
Cash received
Goods and services
Related entities 24 171
Non-related entities 6 38
Net GST received from the ATO 239 662
Cash transferred from the OPA - 570
Cash used
Employees 1,358 3,626
Suppliers 1,059 7,289
Cash transferred to the OPA - 1,752
Net cash used by operating activities 11 1,086 (2,084)
Cash used
Purchase of property, plant and equipment - 64
Total cash used - 64
Net cash used by investing activities - 64
Net increase in cash held 1,086 (2,148)

Cash at the beginning of the reporting period 246 2.394
Cash at the end of the reporting period 6.1 1,332 246
389
3 NOV 30 JUN
2004 2004
$'000 $'000
BY TYPE
Other commitments
Operating leases (1) 149 230
Total other commitments 149 230
Commitments receivable (14) (21)

Net commitments 135 209
BY MATURITY

From one to five years 5 9
Total operating lease commitments by maturity 149 230
Commitments Receivable (14) (21)
Net commitments by maturity 135 209
NB: Commitments are GST inclusive where relevant
Operating leases included are effectively non-cancellable and

(1)
comprise:
Nature of lease General description of leasing arrangements

Leases for office
Office accommodation, 80 Elizabeth St, Hobart
accommodation
Office accommodation, Grafton St, Cairns
The above schedule should be read in conjunction with the accompanying notes.


Note Description
2 Adoption of AASB Equivalents to International Financial Reporting Standards from
2005-2006
3 Abolition of the National Oceans Office
6 Financial Assets
8 Provisions
9 Payables
10 Equity
18 Appropriations
19 Reporting of Outcomes
391

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.1 OBJECTIVES OF THE NATIONAL OCEANS OFFICE
The National Oceans Office (NOO) is responsible for coordinating and promoting a whole-of-
government approach to the implementation and further development of Australia's Oceans
Policy. NOO's objective is to improve the ecologically sustainable management of Australia's
oceans.
The agency is structured to meet one outcome:

Outcome 1: The environment, especially those aspects that are matters of

national environmental significance, is protected and
conserved.
Sub outcome: Australians working together towards the ecologically

sustainable management of the oceans.
The continued existence of NOO in its present form, and with its present obligations, is
dependent on Government policy and on continuing appropriations by the Parliament for
NOO's administration and programs.


NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements are required by section 49 of the Financial Management and
Accountability Act 1997 and are a general purpose financial report.
The financial statements have been prepared in accordance with:

- Finance Minister's Orders (or FMOs, being the Financial Management and Accountability Orders
(Financial Statements for reporting periods ending on or after 30 June 2004));
- Australian Accounting Standards and Accounting Interpretations issued by the Australian
Accounting Standards Board; and
- Consensus Views of the Urgent Issues Group.
The Statement of Financial Performance and Financial Position have been prepared on an accrual
basis and are in accordance with the historical cost convention. Except where stated, no
allowance is made for the effect of changing prices on the results or the financial position.
Assets and liabilities are recognised in the Statement of Financial Position when and only when it
is probable that the future economic benefits will flow and the amounts of the assets or liabilities
can be reliably measured. However, assets and liabilities arising under agreements equally
proportionately unperformed are not recognised unless required by an Accounting Standard.
Liabilities and assets, which are unrecognised are reported in the Schedule of Commitments and
the Schedule of Contingencies.
Revenues and expenses are recognised in the Statement of Financial Performance when and
only when the flow or consumption or loss of economic benefits has occurred and can be reliably
measured.
393

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont)
1.3 Changes in Accounting Policy
The accounting policies used in the preparation of these financial statements are consistent with
those used in the financial year ended 30 June 2004.
1.4 Revenue
Revenues from Government
Amounts appropriated for Departmental outputs appropriations for the period (less any current
year savings and reductions) are recognised as revenue, except for certain amounts that relate to
activities that are reciprocal in nature, in which case revenue is recognised only when it has been
earned.
Appropriations receivable are recognised at their nominal value.
Resources Received Free of Charge

Services received free of charge are recognised as revenue when and only when a fair value can
be reliably determined and the services would have been purchased if they had not been donated.
Use of those resources is recognised as an expense.
Other Revenue
Revenue from the sale of goods is recognised upon delivery of the goods to customers.
Revenue from rendering services is recognised by reference to the stage of completion of

contracts or other agreements to provide services. The stage of completion is determined
according to the proportion that costs incurred to date bear to the estimated total cost of the
transaction.
Revenue from disposal of non-current assets is recognised when control of the asset has passed
to the buyer.


Liabilities for services rendered by employees are recognised at the reporting date to the extent
that they have not been settled.
Liabilities for wages and salaries (including non-monetary benefits) annual leave and sick leave
are measured at their nominal amounts. Other employee benefits expected to be settled within 12
months of the reporting date are also measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the
liability.
All other employee benefit liabilities are measured as the present value of the estimated future
cash outflows to be made in respect of services provided by employees up to the reporting date.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No
provision has been made for sick leave as all sick leave is non-vesting and the average sick leave
taken in future years by employees of NOO is estimated to be less than the annual entitlement for
sick leave.
The leave liabilities are calculated on the basis of employees' remuneration, including NOO's
employer superannuation contributions rates to the extent that the leave is likely to be taken
during service rather than paid out on termination.
The liability for long service leave has been determined by using the shorthand method developed
by the Australian Government Actuary. The estimate of the present value of the liability takes into
account attrition rates and pay increases through promotion and inflation.
The liability for employer superannuation contributions in respect of leave accrued is recognised at
the nominal amount payable on leave accrued at 3 November 2004.
Superannuation
Staff of NOO are members of the Commonwealth Superannuation Scheme and the Public Sector
Superannuation Scheme. The liability for their superannuation benefits is recognised in the
financial statements of the Australian Government and is settled by the Australian Government in
due course.
NOO makes employer contributions to the Australian Government at rates determined by an

actuary to be sufficient to meet the cost to the Australian Government of superannuation
entitlements of NOO's employees.
395

1.5 Employee Benefits (Cont)
The liability for superannuation recognised as at 3 November represents outstanding contributions

for the final fortnight of the year.
1.6 Leases
A distinction is made between finance leases and operating leases. Finance leases effectively
transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership
of leased non-current assets. In operating leases, the lessor effectively retains substantially all
such risks and benefits.
Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the
present value of minimum lease payments at the inception of the lease term and a liability
recognised for the same time and the same amount. Leased assets are amortised over the period
of the lease. Lease payments are allocated between the principal component and the interest
expense.
Operating lease payments are expensed on a basis which is representative of the pattern of
benefits derived from the leased assets.
1.7 Borrowing Costs
All borrowing costs are expensed as incurred except to the extent that they are directly attributable
to qualifying assets, in which case they are capitalised. The amount capitalised in a reporting
period does not exceed the amount of costs incurred in that period. NOO has no qualifying assets.
1.8 Cash
Cash means notes and coins held and deposits held at call with a bank or financial institution.
Cash is recognised at its nominal amount.
1.9 Other Financial Instruments
Government loans are carried at the balance yet to be repaid. Interest is expensed as it accrues
unless it is directly attributable to a qualifying asset.
Trade creditors
Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which
the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have
been received (and irrespective of having been invoiced)


1.9 Other Financial Instruments (Cont)
Term Deposits
Term deposits are recognised at cost.
Contingent Liabilities and Contingent Assets
Contingent Liabilities (assets) are not recognised in the Statement of Financial Position but are
discussed in the relevant schedules and notes. They may arise from uncertainty as to the
existence of a liability (asset), or represent an existing liability (asset) in respect of which
settlement is not probable or the amount cannot be reliably measured. Remote contingencies are
part of this disclosure. Where settlement becomes probable, a liability (asset) is recognised. A
liability (asset) is recognised when its existence is confirmed by a future event, settlement
becomes probable or reliable measurement becomes possible.
1.10 Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes
the fair value of assets transferred in exchange and liabilities undertaken.
1.11 Property, Plant and Equipment
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the Statement of
Financial Position, except for purchases costing less than $5,000, which are expensed in the year
of acquisition (other than where they form part of a group of similar items which are significant in
total).
Revaluations
Basis
Buildings, plant and equipment are carried at cost less accumulated depreciation and
amortisation.
397

1.11 Property, Plant and Equipment
Depreciation
Depreciable property, plant and equipment assets are written-off to their estimated residual values
over their estimated useful lives to NOO using, in all cases, the straight-line method of
depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of
the estimated useful life of the improvement or the unexpired period of the lease.
Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary
adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Residual values are re-estimated for a change in prices only when assets are revalued.
Depreciation rates applying to each class of depreciable asset are based on the following useful
lives:
3 Nov 2004 Y/E 30 Jun 2004
Buildings 3 to 50 years 3 to 50 years
Leasehold improvements Lease term Lease term
Plant and equipment 2 to 49 years 2 to 49 years
The aggregate amount of depreciation allocated for each class of asset during the reporting period
is disclosed in Note 5.3.


1.12 Impairment of Non-Current Assets
Non-current assets carried at up to date fair value at the reporting date are not subject to
impairment testing.
The non-current assets carried at cost or deprival value, which are not held to generate net cash
inflows, have been assessed for indications of impairment. Where indications of impairment exist,
the carrying amount of the asset is compared to the higher of its net selling price and depreciated
replacement cost and is written down to that value if greater.
1.13 Intangible Assets
NOO's intangibles comprise internally developed software, for internal use. These assets are
carried at cost.
Software is amortised on a straight-line basis over its anticipated useful life. The useful life of
NOO’s software is 3 years (2003-04: 3 years).
All software assets were assessed for impairment as at 3 November 2004, no impairment
indicators were identified.
1.14 Taxation
NOO is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and
services tax (GST).
Revenues, expenses and assets are recognised net of GST:
• except where the amount of GST incurred is not recoverable from the Australian Taxation
Office; and
• except for receivables and payables.
Transactions denominated in a foreign currency are converted at the exchange rate at the date of
the transaction. Foreign currency receivables and payables are translated at the exchange rates
current at balance date. Associated currency gains and losses are not material.
1.16 Insurance
NOO has insured for risks through the Government's insurable risk managed fund called
'Comcover'. Workers compensation is insured through the Government's Comcare Australia.
399

1.17 Comparative Figures
Comparative figures are presented, where appropriate, for the full financial year ended 30 June
2004. The 3 November 2004 figures are for the period 1 July 2004 to 3 November 2004. Refer
Note 3
1.18 Rounding
Amounts have been rounded to the nearest $1,000 except in relation to the following:
- act of grace payments and waivers;

- remuneration of executives;
- remuneration of auditors; and
- appropriations.
NOTE 2 ADOPTION OF AASB EQUIVALENTS TO INTERNATIONAL FINANCIAL

REPORTING STANDARDS FROM 2005-2006.
The Australian Accounting Standards Board has issued replacement Australian Accounting
Standards to apply from 2005-06. The new standards are the AASB Equivalents to International
Financial Reporting Standards (IFRSs) which are issued by the International Accounting
Standards Board. The new standards cannot be adopted early. The standards being replaced are
to be withdrawn with effect from 2005-06, but continue to apply in the meantime.
The purpose of issuing AASB Equivalents to IFRSs is to enable Australian entities reporting under
the Corporations Act 2001 to be able to more readily access overseas capital markets by
preparing their financial reports according to accounting standards more widely used
overseas.
It is expected that the Finance Minister will continue to require compliance with the Accounting
Standards issued by the AASB, including the AASB Equivalents to IFRSs, in his Orders for the
Preparation of Agency financial statements for 2005-06 and beyond.
The AASB Equivalents contain certain additional provisions, which will apply to not-for-profit
entities, including Australian Government agencies. Some of these provisions are in conflict with
the IFRSs and therefore NOO will only be able to assert compliance with the AASB Equivalents to
the IFRSs.
Existing AASB standards that have no IFRS equivalent will continue to apply, including in
particular AAS 29 Financial Reporting by Government Departments.
Accounting Standard AASB 1047 Disclosing the impact of Adopting Australian Equivalents to
IFRSs requires that the financial statements for 2003-04 disclose:
• An explanation of how the transition to the AASB Equivalents is being managed; and
• A narrative explanation of the key differences in accounting policies arising from the
transition.
The purpose of this Note is to make these disclosures.



REPORTING STANDARDS FROM 2005-2006 (Cont)
Management of the transition to AASB Equivalents to IFRSs
National Oceans Office will take the following steps for the preparation towards the
implementation of AASB Equivalents:
• The Agency’s Audit Committee is tasked with oversight of the transition to and
implementation of the AASB Equivalents to IFRSs. The Chief Finance Officer is formally
responsible for the project and reports regularly to the Audit Committee on progress
against the formal plan approved by the Committee.
• The plan will require the following key steps to be undertaken and sets deadlines for their
achievement:
1. Identification of all major accounting policy differences between current AASB

standards and the AASB Equivalents to IFRSs progressively to 30 June 2005.
2. Identification of systems changes necessary to be able to report under the AASB

Equivalents, including those necessary to enable capture of data under both sets
of rules for 2004-05, and the testing and implementation of those changes.
3. Preparation of a transitional balance sheet as at 1 July 2004, under AASB

Equivalents.
4. Preparation of an AASB Equivalent balance sheet at the same time as the 30 June
2005 statements are prepared.
5. Meeting reporting deadlines set by Finance for 2005-06 balance sheet under
AASB Equivalent Standards.
• The plan also addresses the risks to successful achievement of the above objectives and
includes strategies to keep implementation on track to meet deadlines.
• Consultants will be engaged where necessary to assist with each of the above steps.
401


Major changes in accounting policy
Changes in accounting policies under AASB Equivalents are applied retrospectively i.e. as if the
new policy had always applied. This rule means that a balance sheet prepared under the AASB
Equivalents must be made as at 1 July 2004, except as permitted in particular circumstances by
AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting
Standards. This will enable the 2005-06 financial statements to report comparatives under the
AASB Equivalents also.
Property plant and equipment
It is expected that the Finance Minister’s Orders will require property plant and equipment assets
carried at valuation in 2003-04 to be measured at up-to-date fair value from 2005-06. This differs
from the accounting policies currently in place for these assets which, up to and including 2003-
04, have been carried at cost less accumulated depreciation and amortisation.
However, it is important to note that the Finance Minister requires these assets to be measured at
up-to-date fair values as at 30 June 2005. Further, the transitional provisions in AASB 1 will mean
that the values at which assets are carried as at 30 June 2004 under existing standards will stand
in the transitional balance sheet as at 1 July 2004.
Intangible Assets
National Oceans Office currently recognises internally developed software assets on the cost
basis. The carrying amounts include amounts that were originally measured at deprival valuation
and subsequently deemed to be cost under transitional provisions available on the introduction of
AAS 38 Revaluation of Non-current Assets in 2000-01 and AASB 1041 of the same title in 2001-
02.
The AASB Equivalent on Intangibles does not permit intangibles to be measured at valuation
unless there is an active market for the intangible. National Oceans Office’s internally developed
software is specific to the needs to the Agency and is not traded. Accordingly, National Oceans
Office will derecognise the valuation component of the carrying amount of these assets on
adoption of the AASB Equivalent.



Impairment of Non-Current Assets
National Oceans Office’s policy on impairment of non-current assets is at note 1.12
Under the new AASB Equivalent Standard, these assets will be subject to assessment for
impairment and, if there are indications of impairment, measurement of any impairment.
(Impairment measurement must also be done, irrespective of any indications of impairment, for
intangible assets not yet available for use). The impairment test is that the carrying amount of an
asset must not exceed the greater of:
(a) its fair value less costs to sell; and
(b) its value in use.
‘Value in use’ is the net present value of net cash inflows for for-profit assets of the Agency. The
most significant changes are that, for the Agency’s for-profit assets, the recoverable amount is
only generally to be measured where there is an indication of impairment and that assets carried
at up-to-date fair value, whether for-profit or not, may nevertheless be required to be written down
if costs to sell are significant.
Employee Benefits
The provision for long service leave is measured at the present value of estimated future cash
outflows using market yields as at the reporting date on national government bonds.
403

3 NOV 30 JUN
2004 2004
$'000 $'000
NOTE 3 ABOLITION OF THE NATIONAL OCEANS OFFICE
On 26 October 2004, Philip Michael Jeffery, Governor-General of the Commonwealth of Australia, acting with
the advice of the Federal Executive Council, under section 65 of the Public Service Act 1999 abolished the
National Oceans Office as an Executive Agency.
The abolition was regulated under the Financial Management and Accountability Act, effective 4 November
2004, by the Financial Management and Accountability Amendment Regulations 2004 (No.2), Statutory Rules
2004 No.310.
Effective 4 November 2004, the National Oceans Office was transferred to the Department of the Environment
and Heritage as a going concern, and all assets and liabilities were transferred at the values shown in these
Financial Statements as at 3 November 2004.
NOTE 4 OPERATING REVENUES
4.1 Revenues from Government

Resources received free of charge 15 18
Total revenues from government 3,240 9,160
4.2 Goods and Services
Services 31 272
Total sales of goods and services 31 272

Related entities 24 171
External entities 7 101
Total rendering of services 31 272


3 NOV 30 JUN
2004 2004
NOTE 5 OPERATING EXPENSES $'000 $'000
5.1 Employee Expenses
Wages and Salary 1,138 2,945

Leave and other entitlements 43 215
Other employee expenses 10 65
Workers compensation premiums 14 25
5.2 Supplier Expenses
Goods from external entities 32 315

Services from related entities 355 2,477
Services from external entities 639 2,767
Operating lease rentals * 80 193
Total supplier expenses 1,106 5,752
5.3 Depreciation and Amortisation
(i) Depreciation
Leasehold improvements 4 10
Total Depreciation 47 125
(ii) Amortisation
Intangibles – computer software 3 8
The aggregate amounts of depreciation or amortisation expensed during the reporting period for
each class of depreciable asset are as follows:
Leasehold improvements 4 10
Intangibles – computer software 3 8
405

3 NOV 30 JUN
2004 2004
$'000 $'000
NOTE 6 FINANCIAL ASSETS
6.1 Cash
Departmental 1,332 246

Total cash 1,332 246
Under banking arrangements in place up to 1 July 2003, monies in the Agency’s bank accounts were
swept into the Official Public Account nightly and earned interest on the daily balance at rates based
on money market call rates. Since 1 July 2003, no interest is earned on the Agency’s bank balances.
6.2 Receivables
22 21
GST receivable from the Australian Tax Office 65 199

Appropriations receivable - undrawn 1,173 1182
Total receivable (net) 1,260 1,402
All receivables are current assets.
Appropriations receivable are undrawn appropriations controlled by the Agency but held in the
Official Public Account under the Government’s just-in-time drawdown arrangements.


3 NOV 30 JUN
2004 2004
$'000 $'000
NOTE 7 NON-FINANCIAL ASSETS
7.1 Land and Buildings
Leasehold improvements - at cost 78 78
-Accumulated depreciation (65) (61)
Total Land and Buildings (non-current) 13 17
Infrastructure, plant and equipment - at cost 305 350
-Accumulated depreciation (245) (247)
Total Infrastructure, Plant and Equipment (non-current) 60 103
7.3 Intangibles
Computer Software - at cost 37 48
-Accumulated amortisation (33) (41)
Total Intangibles (non-current) 4 7
7.4 Other Non-Financial Assets
Prepayments 274 200
407

7.5 Analysis of Property, Plant, Equipment and Intangibles
7.5 (a) Reconciliation of the opening and closing balances of property, plant and equipment and intangibles
Other
Buildings - Infrastructure,
Leasehold Buildings - Plant and Computer Other Total
Improvements Total Equipment Software Intangibles Intangibles Total
Item $'000 $'000 $'000 $'000 $'000 $'000 $'000
As at 1 July 2004
Gross book value 78 78 349 49 - 49 476
Accumulated depreciation/amortisation (61) (61) (246) (42) - (42) (349)

Net Book Value 17 17 103 7 - 7 127
Additions by purchase - - - - - - -
Depreciation/amortisation expense (4) (4) (43) (3) - (3) (50)
Gross Book Value 78 78 305 37 - 37 420
Accumulated Depreciation/Amortisation (65) (65) (245) (33) - (33) (343)
Net book value 13 13 60 4 - 4 77

3 NOV 30 JUN
2004 2004
$'000 $'000
NOTE 8 PROVISIONS
8.1 Employee Provisions
Salaries and wages 114 111
Leave 505 493
Aggregate employee entitlement liability 706 690

Worker's compensation - -
Aggregate employee entitlement liability and related on-costs 706 690
Current 431 425
Non-current 275 265
706 690
NOTE 9 PAYABLES
9.1 Suppliers Payable
Trade creditors 413 202
Total supplier payables 413 202
All suppliers payable are current liabilities. Settlement is usually made net 30
days.
409

NOTE 10 EQUITY
10.1 Analysis of Equity
Item Accumulated Results Total Equity
3 NOV 30 JUN 3 NOV 30 JUN

2004 2004 2004 2004
$'000 $'000 $'000 $'000
Opening Balance as at 1 July 1,083 1,256 1,083 1,256

Net surplus/(deficit) 741 (173) 741 (173)
Closing balance as at 3 November 1,824 1,083 1,824 1,083


3 NOV 30 JUN
2004 2004
$'000 $'000
NOTE 11 CASH FLOW RECONCILIATION
11.1 Cash Flow Reconciliation
Reconciliation of cash per Statement of Financial Position to Statement of Cash

Flows
Cash at year end per Statement of Cash Flows 1,332 246
Statement of Financial Position items comprising above cash: 'Financial Asset - Cash' 1,332 246
11.2 Reconciliation of net deficit to net cash from operating activities:
Net surplus (deficit) 741 (173)
Depreciation / amortisation 50 133

Changes in assets and liabilities:
(Increase) / decrease in net receivables 142 (1079)
(Increase) / decrease in prepayments (74) (200)
Increase / (decrease) in employee provisions 16 100
Increase / (decrease) in supplier payables 211 (865)
Net cash from / (used by) operating activities 1,086 (2,084)
NOTE 12 CONTINGENT LIABILITIES AND ASSETS
There were no quantifiable contingencies to report.
411

3 NOV 30 JUN
2004 2004
$'000 $'000
NOTE 13 EXECUTIVE REMUNERATION
The number of executives who received or were due to receive total remuneration of
$100,000 or more:
$120,000 to $129,999 - 1
$130,000 to $139,999 - 1
The aggregate amount of total remuneration of executives shown above. - 254,743
The aggregate amount of separation and redundancy payments during Nil Nil
the year to executive officers shown above.
The executive remuneration includes all executives concerned with or taking part in
the management of office from 1 July to 3 November 2004.
Performance pay has been included only where a determination has been
made prior to finalisation of these financial statements.
NOTE 14 REMUNERATION OF AUDITORS
Financial statement audit services are provided free of charge to NOO.
The fair value of the services provided was: 15,000 18,000
No other services were provided by the Auditor-General.
NOTE 15 SPECIFIC PAYMENT DISCLOSURES
No ‘Act of Grace’ payments were made during the reporting period. (3 November
2004: No payments made) Nil Nil
No waivers of amounts owing to the Commonwealth were made pursuant to

subsection 34(1) of the Financial Management and Accountability Act 1997. (3
November 2004: No waivers made) Nil Nil
No waivers of amounts owing to the Commonwealth were made pursuant to

subsection 37A of the Fauna and Flora Act 1985. (3 November 2004: No waivers
made) Nil Nil
No ex-gratia payments were made during the reporting period. (3 November 2004: No
payments made) Nil Nil


3 NOV 30 JUN
2004 2004
$'000 $'000
NOTE 15 SPECIFIC PAYMENT DISCLOSURES (Cont)
No payments were made under the ‘Defective Administration Scheme’ during the
reporting period. (3 November 2004: No payments made) Nil Nil
No payments were made under s73 of the Public Service Act 1999 during the
reporting period. (3 November 2004: No payments made) Nil Nil
NOTE 16 AVERAGE STAFFING LEVELS
The average staffing levels for NOO during the period were 43 43
413

NOTE 17 FINANCIAL INSTRUMENTS
17.1 Interest Rate Risk
Weighted
Financial Floating Fixed Interest Rate (Maturing In) Non-Interest Average Effective
Total
Instrument Notes Interest Rate Bearing Interest
1 year or less 1 to 5 years > 5 years Rate
3 NOV 30 JUN 3 NOV 30 JUN 3 NOV 30 JUN 3 NOV 30 JUN 3 NOV 30 JUN 3 NOV 30 JUN 3 NOV 30 JUN
2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 % %
Financial Assets
Cash at bank 6.1 - - - - - - - - 1,332 246 1,332 246 - -

Receivables for
goods and

services (gross) 6.2 - - - - - - - - 87 220 87 220 n/a n/a
Appropriations
Receivable 6.2 - - - - - - - - 1,173 1,182 1,173 1,182 n/a n/a
Total 2,592 1,648 2,592 1,648
Trade creditors 9.1 - - - - - - - - 413 202 413 202 n/a n/a

Total - - - - - - - - 413 202 413 202 n/a n/a
Total Liabilities 1,119 892

17.2 Net Fair Values of Financial Assets and Liabilities
3 NOV 30 JUN
2004 2004
Total Aggregate Total Aggregate

Carrying Net Fair Value Carrying Net Fair Value
Notes Amount Amount
$'000 $'000 $'000 $'000
Financial Assets
Cash at bank 6.1 1,332 1,332 246 246
Receivables for goods and services (net) 6.2 87 87 220 220
Appropriations receivable 6.2 1,173 1,173 1,182 1,182
Total Financial Assets 2,592 2,592 1,648 1,648

Trade creditors 9.1 413 413 202 202
Total Financial Liabilities (Recognised) 413 413 202 202
The net fair value of cash and non-interest-bearing monetary financial assets approximate their carrying amount.
The net fair value of trade creditors are approximated by their carrying amounts.
NOO's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying
amount of those assets as indicated in the Statement of Financial Position.
NOO has no significant exposures to any concentrations of credit risk.
All figures for credit risk referred to do not take into account the value of any collateral or other security.
415

NOTE 18 APPROPRIATIONS
18.1 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund (Appropriations) Acts 1 and 3
3 NOV 30 JUN
2004 2004
Particulars Departmental Total Departmental Total
Outputs Outputs
Period ended 3 November 2004
Balance carried from previous year 1,627,536 1,627,536 2,698,670 2,698,670

Adjustment from prior year * - - - -
Unspent receipts from 1999-2004 where no s31 agreement was in
place¹ (209,449) (209,449) - -
Adjusted balance carried from previous year 1,418,087 1,418,087 2,698,670 2,698,670
Appropriation for reporting year:
Appropriation Act (No.1) 2004-2005 – basic appropriation 3,224,910 3,224,910 9,142,000 9,142,000
Appropriation Act (No.3) 2004-2005 – basic appropriation - - - -

Departmental Adjustments by the Finance Minister - - - -
Advance to the Finance Minister - - - -
FMA appropriations
Refunds credited (FMAA s30) - - - -
Appropriations to take account of recoverable GST (FMAA s30A) 104,989 104,989 556,507 556,507
Annotations to 'net appropriations' (FMAA s31) - - 209,449 209,449
Adjustment of appropriations on change of entity function (FMAA s32) - - - -
Appropriation lapsed or reduced - - - -
Total Appropriations available for payments 4,747,986 4,747,986 12,606,626 12,606,626
Payments made (GST inclusive) 2,416,939 2,416,939 10,979,090 10,979,090

Balance carried to next period 2,331,047 2,331,047 1,627,536 1,627,536
NOTE 18 APPROPRIATIONS (Cont)

3 NOV 30 JUN
2004 2004
Particulars Departmental Total Departmental Total
Outputs Outputs
Represented by:
Cash 1,332,328 1,332,328 246,479 246,479
Add: Appropriations not drawn from the OPA 1,173,215 1,173,215 1,182,068 1,182,068
Add: Receivables – Net GST Receivable from the ATO 64,577 64,577 198,989 198,989
Less: Receipts from periods of no s31 agreement in years 1999-2005,
not currently available (239,073) (239,073) - -
Total 2,331,047 2,331,047 1,627,536 1,627,536
Act 1 = Appropriation Act (No. 1) 2004-2005

Act 3 = Appropriation Act (No. 3) 2004-2005
FMA = Financial Management and Accountability Act 1997
(1) Under section 31 of the Financial Management and Accountability Act 1997 (the FMA Act), the Minister for Finance may enter into a net
appropriation agreement with an agency Minister. Appropriation Acts numbers 1 and 3 (ordinary annual services of government) authorise the
Supplementation of the Department’s annual net appropriation by amounts received in accordance with Section 31 Agreement, eg receipts from
Charging for goods and services.
417
NOTE 18 APPROPRIATIONS (Cont)
Although we have operated and recorded receipts as though section 31 agreements were in place, receipts collected
in the periods below have not been captured by a section 31 agreement:
• 1 July 2003 to 30 June 2004
• 1 July 2004 to 3 November 2004.
As a result annotations to ‘net appropriations” from 1 July 2001 to 30 June 2004 totalling $209,449, and totalling
$29,624 for 1 July 2004 to 3 November 2004, were made without the authority of the Parliament. However there was
no overspend relevant to these amounts and accordingly no breach of Section 83 of the Constitution.
A year-by-year analysis of the overstatement of the departmental output appropriations is given below.
Total
01-02 02-03 03-04 Sub-total 04-05 1/7/01 to 3/11/04
Receipts affected 0 0 209,449 209,449 29,624 239,073
Unspent 0 0 209,449 209,449 29,624 239,073
Amount spent without appropriation 0 0 0 0 0 0
Our current Section 31 Agreement was made on 29 June 2005 between the Department's Minister and a delegate of
the Minister for Finance. It is understood that options are being examined for making available for spending any
unspent receipts not previously captured by an agreement, to enable them to be spent in accordance with Section 83
of the Constitution.


NOTE 19 REPORTING BY OUTCOMES
Attribution of shared items has been determined using an activity based costing system.
19.1 Net Cost of Outcome Delivery
Outcome
1 Total
3 NOV 30 JUN 3 NOV 30 JUN

2004 2004 2004 2004
$'000 $'000 $'000 $'000
Departmental expenses 2,530 9,605 2,530 9,605
Total expenses 2,530 9,605 2,530 9,605
Costs recovered from provision of goods and
services to the non-government sector
Departmental - 101 - 101
Total costs recovered - 101 - 101
Other external revenues

Departmental
Goods and Services Revenue from Related
Entities 24 171 24 171
Total Departmental 24 171 24 171
Total Other external revenues 24 171 24 171
Net cost of outcome 2,506 9,333 2,506 9,333
Outcome 1 is as described in note 1. Net costs shown include intra-government costs that are
eliminated in calculating the actual Budget outcome.
419

19.2 Major Classes of Agency Revenues and Expenses by Output Group
Attribution of shared items has been determined using an activity based costing system.
Outcome 1 Output 1.1 Output 1.2 Outcome 1 Total
3 NOV 30 JUN 3 NOV 30 JUN 3 NOV 30 JUN

2004 2004 2004 2004 2004 2004
$'000 $'000 $'000 $'000 $'000 $'000
Departmental expenses
Employees 1,202 2,902 172 818 1,374 3,720
Suppliers 968 4,487 138 1,265 1,106 5,752
Depreciation and amortisation 44 104 6 29 50 133
Total departmental expenses 2,214 7,493 316 2,112 2,530 9,605
Funded by:
Revenue from government 2,835 7,145 405 2,015 3,240 9,160
Sale of goods and services 27 212 4 60 31 272

Interest - - - - - -
Total department revenues 2,862 7,357 409 2,075 3,271 9,432
Outcome 1 is described in Note 1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget
outcome.
Certification of fraud control
Minister, as required by the Commonwealth Fraud Control
Guidelines, I certify that the department has in place appropriate
fraud control procedures, as explained in the chapter of this report
dealing with corporate governance.
David Borthwick
Secretary
20 October 2005
421

Glossary
Accrual accounting is the system of accounting where items are brought to
account and included in the financial statements as they are earned or incurred,
rather than as they are received or paid.
Administered items are expenses, revenues, assets or liabilities managed
by agencies on behalf of the Commonwealth. Administered expenses include
grants, subsidies and benefits, and may fund the delivery of third party outputs.
For example the department administers appropriations for the Australian
Government’s Natural Heritage Trust to provide grants. This annual report refers to
appropriations for administered items as ‘administered appropriations’.
Additional estimates is a process where the parliament may appropriate more
funds to portfolios if the amounts appropriated at Budget time are insufficient.
Appropriations are authorisations by the parliament to spend monies from
the Consolidated Revenue Fund. Two appropriation Bills are introduced into
parliament in May and comprise the Budget. Further Bills are introduced later in
the financial year as part of the additional estimates.
Biodiscovery means taking samples from native animals, plants or microbial life
Glossary
to study their genetic and biochemical make-up.

Biodiversity in essence means the variety of life. The term ‘biodiversity’ is a
contraction of, and synonymous with, ‘biological diversity’. The term ‘biological
diversity’ is defined in Article 2 of the Convention on Biological Diversity to mean
‘the variability among living organisms from all sources including, inter alia,
terrestrial, marine and other aquatic ecosystems and the ecological complexes of
which they are part; this includes diversity within species, between species and of
ecosystems’ (a similar definition appears in the glossary to the Ramsar Convention
on wetlands available at www.ramsar.org/about_glossary2_e.htm). Apparently this
term was first defined in 1980 to include two related concepts, genetic diversity
(the amount of genetic variability within species) and ecological diversity
(the number of species in a community of organisms). In terms of the diversity
between species, estimates of the total number of species range from three to 100
million. Apparently the contracted form ‘biodiversity’ was coined in 1986. See the
glossary of terms related to the Convention on Biological Diversity available on the
internet at bch-cbd.naturalsciences.be/belgium/glossary/glossary.htm.
Bioregion in essence means a geographic area characterised by a combination of
physical and biological characteristics, for example, terrain, climate and ecological
communities. The glossary of terms related to the Convention on Biological
Diversity (available on the internet at bch-cbd.naturalsciences.be/belgium/
glossary/glossary.htm) provides the following definition: ‘a territory defined by a
combination of biological, social, and geographic criteria, rather than geopolitical
considerations; generally, a system of related, interconnected ecosystems’.

The term ‘bioregion’ is a contraction of biogeographic region and is usually
synonymous with that term. The glossary to the Ramsar Convention on wetlands
(available at www.ramsar.org/about_glossary2_e.htm) provides the following
definition of ‘biogeographic region’ in relation to wetland management: ‘a
scientifically rigorous determination of regions as established using biological and
physical parameters such as climate, soil type, vegetation cover, etc’. Bioregions
are a useful way to analyse patterns of biodiversity. The definition of a particular
bioregion depends on the scale at which its characteristic features are measured.
Examples include the Interim Biogeographic Regionalisation for Australia (see
www.deh.gov.au/parks/nrs/ibra) and Interim Marine and Coastal Regionalisation
for Australia (see www.deh.gov.au/coasts/mpa/nrsmpa/imcra.html).
Commonwealth heritage refers to a list of places under the Environment
Protection and Biodiversity Conservation Act 1999, which are owned or controlled
by the Australian Government, and that have natural, Indigenous and historic
heritage values. These include places connected to defence, communications,
customs and other government activities that also reflect Australia’s development
as a nation.
Glossary
Corporate governance is the process by which agencies are directed and
controlled. It is generally understood to encompass authority, accountability,
stewardship, leadership, direction and control.
Departmental items are assets, liabilities, revenues and expenses that are
controlled by the agency in providing its outputs. Departmental items would
generally include computers, plant and equipment assets used by agencies
in providing goods and services and most employee expenses, supplier costs
and other administrative expenses incurred. This annual report refers to
appropriations for departmental items as ‘departmental appropriations’.
Ecologically sustainable is used to describe activities that meet present needs
without compromising the ability to meet future needs because of damage to
the environment. For example, ecologically sustainable development is ‘using,
conserving and enhancing the community’s resources so that ecological processes,
on which life depends, are maintained, and the total quality of life, now and in the
future, can be increased’ (source: National Strategy for Ecologically Sustainable
Development, available at www.deh.gov.au/esd/national/nsesd/strategy).
Ecologically sustainable use of natural resources means ‘use of the natural
resources within their capacity to sustain natural processes while maintaining
the life-support systems of nature and ensuring that the benefit of the use to
the present generation does not diminish the potential to meet the needs and
aspirations of future generations’ (source: Environment Protection and Biodiversity
Conservation Act 1999).
425
Ecological communities are ‘any naturally occurring group of species inhabiting
a common environment, interacting with each other especially through food
relationships and relatively independent of other groups. Ecological communities
may be of varying sizes, and larger ones may contain smaller ones’
(source: the glossary to the Ramsar Convention on wetlands, available at
www.ramsar.org/about_glossary2_e.htm). In the Environment Protection and
Biodiversity Conservation Act 1999 they are ‘assemblages of native species that
inhabit particular areas in nature’.
Ecosystem services or ecological services are ‘ecological or ecosystem processes
or functions which have value to individuals or to society’ (source: glossary of
terms related to the Convention on Biological Diversity, available at
bch-cbd.naturalsciences.be/belgium/glossary/glossary.htm). The term
encompasses the range of resources and services provided by the natural
environment and the life forms it contains. It is often used to characterise services
that are fundamental to the economy but that are not traded or priced because
historically human intervention was not needed to maintain them. For example, the
environment naturally provides services such as decomposing wastes, pollinating
Glossary
crops, absorbing carbon dioxide and maintaining habitat for useful animals and
plants. It also produces resources such as oxygen, fresh water, fertile soil, fish,
timber, and pharmaceuticals.
The Environment Protection and Heritage Council comprises environment and
planning ministers from Australia’s federal, state and territory governments, and from
the governments of New Zealand and Papua New Guinea, and a representative of
the Australian Local Government Association. The council incorporates the National
Environment Protection Council, the environmental protection components of the
former Australian and New Zealand Environment and Conservation Council and the
former Heritage Ministers’ Meeting. The scope of the Environment Protection and
Heritage Council includes environment protection and heritage (natural, historic
and Indigenous heritage) responsibilities. The statutory functions of the National
Environment Protection Council continue under the umbrella of the Environment
Protection and Heritage Council. See www.ephc.gov.au.
Expense is the total value of all of the resources consumed in producing goods
and services.
Financial results are the results shown in the financial statements of an agency.
Geosequestration, a contraction of ‘geological sequestration’, involves storing
gases such as carbon dioxide underground in deep saline aquifers, depleted oil
and gas reservoirs, coal seams or natural underground pore spaces. Scientists are
investigating whether it is feasible to store carbon dioxide in this way instead of
emitting it to the atmosphere, where as a greenhouse gas it would add to the
greenhouse effect.

Greenhouse gases are heat-trapping gases that are a natural part of the
atmosphere. They maintain higher temperatures at the Earth’s surface than would
otherwise be possible. This phenomenon is called the greenhouse effect. The
Earth’s climate is warming. Scientists agree that some of this warming is due to
human activities—particularly burning fossil fuels (coal, oil and natural gas) and
land clearing—that are increasing the level of emissions of greenhouse gases
into the atmosphere. Water vapour is the most abundant greenhouse gas. Its
concentration is highly variable and human activities have little direct impact on its
amount in the atmosphere. Humans have most impact on carbon dioxide, methane
and nitrous oxide. Various artificial chemicals such as halocarbons also make a
small contribution to climate change.
Integrated natural resource management is a way to ensure that uses of
natural resources are ecologically sustainable. It is ‘integrated’ because it
attempts to manage all the activities that could affect natural resources, taking
natural processes into account as well. It combines managing uses of natural
resources with conservation. To do this it cuts across artificial distinctions such as
Glossary
government agency responsibilities, government or property boundaries, industry
sectors and scientific disciplines. In defining management areas it gives priority to
natural over human boundaries, for example using river catchments or bioregions
as the primary basis for planning and management.
Matters of national environmental significance are aspects of the work of
protecting the environment (including heritage places) for which the Australian
Government is responsible or in which it has an interest. The current list of 30
matters was identified in the 1997 Heads of Agreement on Commonwealth and
State Roles and Responsibilities for the Environment signed by the Council of
Australian Governments (see www.deh.gov.au/epbc/about/agreement). The
agreement allows for other matters to be added in the future. The referrals,
assessments and approvals requirements of the Environment Protection and
Biodiversity Conservation Act 1999 help to protect seven of the 30 matters. The
Australian Government’s interests in the other matters are met through other
legislation, cooperative approaches with the states and territories, and the delivery
of programmes and funding.
Movable cultural heritage refers to objects that people create or collect, whether
artistic, technological or natural, and that are an important part of cultural heritage.
With the increase in international trade in these objects, the Australian Government
can regulate the export of Australia’s significant cultural heritage objects and can
act to return illegally exported objects to their country of origin. The relevant
legislation is the Protection of Movable Cultural Heritage Act 1986.
427
The Murray–Darling Basin Commission is the executive arm of the Murray–
Darling Basin Ministerial Council. The Department of Agriculture, Fisheries and
Forestry administers Australian Government funding to support the work of the
commission. The department is represented on the commission by the secretary
and a deputy secretary. See www.mdbc.gov.au.
The Murray–Darling Basin Ministerial Council comprises government
ministers responsible for land, water and environmental resources from New South
Wales, Victoria, South Australia, Queensland and the Australian Government. The
council is the primary body responsible for providing the policy and direction
needed to implement the Murray–Darling Basin Initiative, a partnership between
governments and the community to give effect to the 1992 Murray–Darling Basin
Agreement. The council oversees management of the basin under the Murray–
Darling Basin Agreement between the Australian, Victorian, New South Wales,
South Australian, Queensland and Australian Capital Territory governments.
The agreement sets out how to share the basin’s water resources.
See www.mdbc.gov.au/about/ministerial_council/council.htm.
Glossary
The National Environment Protection Council comprises the environment

ministers of each state, territory and the Australian Government. The council
has law-making powers under the National Environment Protection Council
Act 1994 and works cooperatively to develop these laws, which are called
‘national environment protection measures’. The council is now part of the
Environment Protection and Heritage Council. See www.ephc.gov.au.
National environment protection measures outline agreed national objectives
for protecting or managing particular aspects of the environment. These measures
have the force of law under the National Environment Protection Measures
(Implementation) Act 1998 and similar legislation in the states and territories.
Measures made to date cover a range of issues including standards for air quality,
movements of controlled waste, and used packaging. See www.ephc.gov.au.
National heritage refers to a list of places or groups of places under the
Environment Protection and Biodiversity Conservation Act 1999 which have
outstanding heritage value to the nation—whether natural, Indigenous or historic
or a combination of these. Places on the National Heritage List are protected to the
full extent of Australian Government powers.
The Natural Heritage Ministerial Board comprises the Minister for the
Environment and Heritage and the Minister for Agriculture, Fisheries and Forestry.
The board, which is established by the Natural Heritage Trust of Australia Act 1997,
provides a formal mechanism for liaison and cooperation between the two
portfolios on matters relating to the Natural Heritage Trust package.
See www.nht.gov.au/orgcom/nhmb.html.

The Natural Heritage Trust was set up by the Australian Government in 1997
to help restore and conserve Australia’s environment and natural resources. Since
then, thousands of community groups have received funding for environmental
and natural resource management projects. The 2004 Budget extended funding for
the Natural Heritage Trust until 2007–08, making it a $3 billion investment.
See www.nht.gov.au.
The Natural Resource Management Ministerial Council comprises ministers of
the Australian Government and the state and territory governments. The council is
responsible for collective national decisions about the conservation and sustainable
use of Australia’s natural resources. The council has subsumed part of the work of
the former Australian and New Zealand Environment and Conservation Council
and other former ministerial councils dealing with primary industry matters.
See www.mincos.gov.au.
Outcomes are the results, impacts or consequences of actions by the Australian
Government on the Australian community. They are listed in agencies’ portfolio
budget statements and portfolio additional estimates statements. Actual outcomes
are the results or impacts actually achieved.
Glossary
Outputs are the goods and services produced by agencies on behalf of the
Australian Government for external organisations or individuals. Outputs also
include goods and services produced for other areas of government external to
an agency. In practice, most of the department’s current outputs are expressed in
broad terms linked to major environmental themes (see ‘Outcomes and outputs’ in
the ‘Executive summary’of this annual report).
Ozone depleting substances are substances that deplete the Earth’s protective
ozone layer. They are widely used in refrigerators, air conditioners, fire
extinguishers, in dry cleaning, as solvents for cleaning, electronic equipment and
as agricultural fumigants. Ozone depleting substances include chlorofluorocarbons,
halon, hydrochlorofluorocarbons and methyl bromide. Countries have agreed
to phase out ozone depleting substances through the Montreal Protocol on
Substances that Deplete the Ozone Layer. Some industries that use ozone depleting
substances are replacing those substances with synthetic greenhouse gases.
Persistent organic pollutants are hazardous and environmentally persistent
substances which can be transported between countries by the Earth’s oceans
and atmosphere. The substances bioaccumulate and have been traced in the fatty
tissues of humans and other animals. Persistent organic pollutants include dieldrin,
polychlorinated byphenyls, DDT, dioxins and furans. Countries have agreed to
control the manufacture and trade of persistent organic pollutants through the
Stockholm Convention on Persistent Organic Pollutants.
429
Price is the amount the government or the community pays for the delivery of
agreed outputs.
Product stewardship means recognising that manufacturers, importers and other
people who benefit from making and selling a product share some responsibility
for the environmental impacts of that product.
Purchaser–provider arrangements are arrangements under which the outputs
of one agency are purchased by another agency to contribute to outcomes.
Purchaser–provider arrangements can occur between Australian Government
agencies or between Australian Government agencies and state or territory
government or private sector bodies.
Revenue is the total value of resources earned or received to cover the production
of goods and services.
Special appropriations are monies appropriated by the parliament in an Act
separate to an annual Appropriation Act, where the payment is for a specified
amount. For example, the department receives special appropriations under laws
that require industry to pay a levy on the import of ozone depleting substances.
Glossary
Special appropriations are not subject to annual budget control by the parliament,
unlike the annual appropriations.
Synthetic greenhouse gases are particularly potent greenhouse gases
and are either used in industrial applications or emitted as a by-product of
industrial activity. They include hydrofluorocarbons, perfluorocarbons and sulfur
hexafluoride. Some industries that use ozone depleting substances are replacing
those substances with synthetic greenhouse gases.

Indexes
Compliance index
This index is provided as an aid to navigation for readers familiar with the
Requirements for Annual Reports authorised by the Australian parliament’s Joint
Committee of Public Accounts and Audit. The requirements, which apply to
departments and executive agencies under subsections 63(2) and 70(2) of the
Public Service Act 1999, are published on the web site of the Department of the
Prime Minister and Cabinet at www.dpmc.gov.au/guidelines/index.cfm. The index
shows how this annual report complies with the joint committee’s requirements.
Ref 1 Description Requirement Page

A.4 Letter of transmittal Mandatory ii
A.5 Table of contents Mandatory iii
A.5 Index Mandatory 438
A.5 Glossary Mandatory 423
A.5 Contact officer(s) Mandatory cover
A.5 Internet home page address and internet Mandatory cover
address for report
9.1 Review by departmental secretary Mandatory 3
9.2 Summary of significant issues and Suggested 3–7
developments
Indexes
9.2 Overview of department’s performance and Suggested 3–7

financial results
9.2 Outlook for following year Suggested 3–7
9.3 Significant issues and developments— Portfolio 3–7
portfolio departments—
suggested
10 Overview description of department Mandatory 8–11
10.1 Role and functions Mandatory 8
10.1 Organisational structure Mandatory 8, 9
10.1 Outcome and output structure Mandatory 10
10.2 Where outcome and output structures differ Mandatory 10
from portfolio budget statement format,
details of variation and reasons for change
10.3 Portfolio structure Portfolio 9
departments—
mandatory
1 The reference is to the location of the item in the Requirements for Annual Reports. For example, ‘9.1’ refers to
subsection 9(1) of the requirements, and ‘A.4’ refers to the fourth item in Attachment A of the requirements.a

Ref Description Requirement Page
11.1 Review of performance during the year Mandatory 13–253
in relation to outputs and contribution to
outcomes
11.1 Actual performance in relation to Mandatory See
performance targets set out in portfolio especially 28,
budget statement and portfolio additional 41 ,56, 76, 88,
estimates statement 100, 123, 136,
147, 156, 160,
187, 200
11.1 Performance of purchaser–provider If applicable, 151, 158;
arrangements mandatory see also 119,
120, 146
11.1 Where performance targets differ from the Mandatory Not
portfolio budget statement and portfolio applicable
additional estimates statement, details of
both former and new targets, and reasons
for the change
11.1 Narrative discussion and analysis of Mandatory 13–253
performance
11.1 Trend information Suggested 13–253
Indexes
11.1 Factors, events or trends influencing Suggested 13–253
departmental performance
11.1 Significant changes in nature of principal Suggested 8
functions or services
11.1 Performance against service charter If applicable, 201
customer service standards, complaints data, mandatory
and the department’s response to complaints
11.1 Social justice and equity impacts Suggested 67
11.2 Discussion and analysis of the department’s Mandatory 234–236
financial performance
11.2 Discussion of any significant changes from Suggested 235–236
the prior year or from budget
11.3 Summary resource tables by outcomes Mandatory 236–242
11.4 Developments since the end of the financial If applicable, Not
year that have affected or may significantly mandatory applicable
affect the department’s operations or financial
results in future
433
12.1 Statement of the main corporate Mandatory 208–214
governance practices in place
12.1 Names of the senior executive and their Suggested 9
responsibilities
12.1 Senior management committees and their Suggested 210–211
roles
12.1 Corporate and operational planning and Suggested 211–213
associated performance reporting and
review
12.1 Approach adopted to identifying areas of Suggested 212
significant financial or operational risk and
arrangements in place to manage risks
12.1 Agency heads are required to certify Mandatory 421
that their agency complies with the
Commonwealth Fraud Control Guidelines
12.1 Policy and practices on the establishment Suggested 213
and maintenance of appropriate ethical
standards
Indexes
12.1 How nature and amount of remuneration Suggested 225

for senior executive service officers is
determined
12.2 Significant developments in external Mandatory 204–207
scrutiny
12.2 Judicial decisions and decisions of Mandatory 204
administrative tribunals
12.2 Reports by the Auditor-General, Mandatory 204–205
a parliamentary committee or the
Commonwealth Ombudsman
12.3 Assessment of effectiveness in managing and Mandatory 215–233
developing human resources to achieve
departmental objectives
12.3 Workforce planning, staff turnover and Suggested 212, 216
retention
12.3 Impact and features of certified agreements Suggested 221–226
and Australian workplace agreements

12.3 Training and development undertaken and Suggested 227
its impact
12.3 Occupational health and safety performance Suggested 229–232
12.3 Productivity gains Suggested —
12.3 Statistics on staffing Mandatory 218–221
12.3 Certified agreements and Australian Mandatory 221–226
workplace agreements
12.3 Performance pay Mandatory 225, 226
12.4 Assessment of effectiveness of assets If applicable, 243
management mandatory
12.5 Assessment of purchasing against core Mandatory 243
policies and principles
12.6 The annual report must include a summary Mandatory 246
statement detailing the number of new
consultancy services contracts let during
the year; the total actual expenditure on
all new consultancy contracts let during
the year (inclusive of GST); the number of
Indexes
ongoing consultancy contracts that were
active in the reporting year; and the total
actual expenditure in the reporting year on
the ongoing consultancy contracts (inclusive
of GST)
(Additional information as in Attachment D
of the Requirements for Annual Reports to be
available on the internet or published as an
appendix to the report. Information must be
presented in accordance with the proforma as
set out in Attachment D.)
12.7 Competitive tendering and contracting Mandatory 246
contracts let and outcomes
12.7 Absence of contractual provisions allowing Mandatory Not
access by the Auditor-General applicable
12.8 Contracts exempt from the Purchasing and Mandatory 247
Disposal Gazette
435
12.9 Report on performance in implementing the Mandatory 202, 232, 245
13 Financial statements Mandatory 255
14.1 Occupational health and safety (section Mandatory 229–232
74 of the Occupational Health and Safety
(Commonwealth Employment) Act 1991)
14.1 Freedom of information (subsection 8(1) of Mandatory 205–207
the Freedom of Information Act 1982)
14.1 Advertising and market research (section Mandatory 247
311A of the Commonwealth Electoral Act
1918)
14.1 Ecologically sustainable development and Mandatory 194–199
environmental performance (section 516A of
the Environment Protection and Biodiversity
Conservation Act 1999)
14.2 Discretionary grants Mandatory 248–253
14.3 Correction of material errors in previous If applicable, Not
annual report mandatory applicable
Indexes

437
Indexes
Alphabetical index
Aboriginal and Torres Strait Islander Heritage air quality
Protection Act 1984, 95 improvement, 33–6
Aboriginal and Torres Strait Islander Services, 8, 96 management
access and equity, 201–2 results for performance indicators, 41
Access and Equity Strategy, 201 standards see ambient air quality standards;
administered items national air quality standards
resources air toxic pollutants
air pollution, 43 national standards for, 34
Australian Greenhouse Office, 242 Air Toxics National Environment Protection
biodiversity and wildlife, 60 Measure, 6, 32
climate change, 31 albatrosses, 176
coasts and oceans, 83 Alligator Rivers Region
heritage, 104 uranium mining in, 121–2
human settlements and industry, 127 Alternative Fuels Conversion Programme, 21
inland waterways, 139 ambient air quality standards, 33–4
land, 149 annual divisional work plan, 212
Outcome 1, 239–40 annual strategic people management plan, 212
parks and reserves, 157 annual strategic plan, 211
see also Australian Biological Resources Study; Antarctic Approvals Online project, 180
Boat Harbour and Sisters Beach, Tasmania; Antarctic Climate and Ecosystem Cooperative
Research Centre, 182, 184
Bushcare; Coastcare; Community Water
Antarctic continental shelf, 173–4
Grants; Grants-in-Aid-National Trust; Great
Antarctic cooperation agreements, 174
Barrier Reef Marine Park Structural
Antarctic ozone hole, 183
Adjustment Package; Landcare;
Indexes
Antarctic science grants, 185

National Environment Protection Council
Antarctic Science Strategy, 182
Service Corporation; Ozone Protection
Antarctic Service Code of Personal Behaviour
and Synthetic Greenhouse Gas Account;
Australian Antarctic Division, 213, 214
reef fisheries adjustment package; Regional
Antarctic Treaty Consultative Meeting, 171, 172, 173
Natural Heritage Programme; Rivercare;
Antarctic Treaty (Environment Protection)
Strengthening Tasmania—Low Head
Act 1980, 179
precinct; Strengthening Tasmania—Tamar
Antarctic Treaty secretariat, 173
River pylons
Antarctic Treaty System, 8, 162, 171–4
Administrative Appeals Tribunal
see also Committee for Environmental
application to, 206 Protection (Antarctic Treaty); Output 2.1:
Advanced Electricity Storage Technologies Influence in Antarctic Treaty System;
Programme, 22 Protocol on Environmental Protection
advertising and market research, 247 (Antarctic Treaty)
Agreed Measures for the Conservation of Antarctica, 7
Antarctic Fauna and Flora, 171 air link, 7, 171, 185–6
Agreement on the Conservation of Albatrosses clean-up operations, 181–2
and Petrels, 176 environment protection laws and, 179–80
agricultural and veterinary chemicals, 119–20 environmental inspections, 173
air link, Antarctica, 7, 171, 185–6 environmental management system, 181
air pollution, 6, 32–43 influence on climate, 171, 182–4
see also Output 1.1: Atmosphere; Policy see also Output 2.3: Understanding global
Coordination and Environment Protection climate system
Division international negotiations, 8

liability for environmental emergencies in, 7, Australian Biological Resources Study, 55–6
171, 172 results for performance indicators, 57
and ‘ocean conveyer belt’, 171, 183 Australian Business Council for Sustainable
protected areas, 180–1 Energy, 18
protecting environment of, 179–82 Australian Climate Change Science Programme, 24
and quarantine, 180 Australian Collaborative Rangelands Information
tourism management, 172 System, 144
see also Outcome 2: Antarctica Australian Council of National Trusts, 98
Approvals and Wildlife Division, 9, 44, 84 Australian Faunal Directory, 56
see also environmental assessments and Australian Fisheries Management Authority, 175
approvals; Output 1.2: Biodiversity; Australian Government Water Fund, 132
Output 1.4: Environmental assessments Australian Greenhouse Emissions Information
and approvals System, 26
Arafura and Timor Seas Experts Forum, 71 Australian Greenhouse Office, 4, 8, 10
Archives Act 1983, 206 and Alternative Fuels Conversion Programme, 21
Asia–Pacific Economic Cooperation (APEC) and Antarctica, 182
and marine conservation, 71 and climate change, 14, 16
Asia–Pacific Focal Point for World Heritage and Climate Change Strategy, 20
Managers, 96 employment agreements, 221
results for performance indicators, 100 and fraud control, 213
Asia–Pacific Partnership on Clean Development and greenhouse gas projections, 26
and Mandatory Renewable Energy Target
and Climate, 15, 18
scheme, 23
Asia–Pacific Seminar on Climate Change, 19
and National Framework for Energy
Asia–Pacific world heritage, 96–7
Efficiency, 21
assessments and approvals see environmental
and National Greenhouse Gas Inventory, 25–6
assessments and approvals
resources, 241–2
Asset Environmental Management Plans, 131
and wind forecasting capability, 22
Indexes
assets management, 243
see also Output 1.10: Climate change
atmospheric electricity project, 184
Australian Heritage Council, 91, 92, 94, 99
Audit Committee, 209, 211
Australian Home Heating Association, 35
Auditor-General reports, 204
Australian National Antarctic Research
Australia State of the Environment 2001 report,
Expeditions, 185
33, 129, 133 Australian Ocean Data Centre Joint Facility, 70
Australia–China Climate Change Partnership, 19 Australian Pesticides and Veterinary Medicines
Australian Antarctic Division, 9, 170 Authority, 118, 119
Antarctic Service Code of Personal Behaviour, Australian Public Service Values and Code of
213, 214 Conduct, 213, 214
Code of Organisational Behaviours, 213 Australian Research Institute in Education for
employment agreements, 221, 224 Sustainability, 166–7
and environmental effects of activities, 198 Australian Retailers’ Association
occupational health and safety, 232 and plastic bags, 107
Occupational Health and Safety Agreement, 229 Australian Sustainable Schools Initiative, 166
seasonal employment needs of, 216 Australian Whale Sanctuary, 51
and small and medium enterprises, 244 Australian workplace agreements, 221, 222–3,
see also Antarctica; Outcome 2: Antarctica 224–5
Australian Antarctic Programme, 170, 184–6 Australia–New Zealand climate change forum,
see also Output 2.4: Undertake scientific 17, 18
work of practical, economic or national Australia’s Oceans Policy see Oceans Policy
significance Australia’s Third National Communication (United
Australian Antarctic Territory, 173–4 Nations Convention on Climate Change)
Australian Biodiversity Hotspots Programme, 94 review of, 27
439
Australia–United States Climate Action China
Partnership, 18 bilateral relationship on climate change, 19
automatic weather stations upgrade, 184 Chinese world heritage, 97
average staffing level (ASL), 238 classifications, job, 217–19
clean-up operations
B Antarctica, 181–2
Basel Convention see Convention on the Control client service charter see service charter
of the Transboundary Movements of Hazardous client service officer, 200
Wastes and Their Disposal (Basel Convention) climate
bilateral relationships, 163–4 Antarctica and, 171, 182–4
climate change, 18–19 see also Output 2.3: Understanding global
Biodiscovery Working Group, 54–5 climate system
biodiversity and wildlife, 6, 44–60, 141 Climate Action Partnerships programme, 40
see also Output 1.2: Biodiversity climate change, 6, 14–31
biodiversity conservation framework, 45–6 greenhouse gas emissions and, 15
biodiversity conservation laws, 196 international diplomatic efforts on, 3
biodiversity hotspots, 46–7, 97
international engagement on, 16–19
results for performance indicators, 57
and marine life, 183
see also Maintaining Australia’s Biodiversity
national response to, 196
Hotspots Programme
understanding, 24–7
biodiversity principle
ecologically sustainable development, 195–6
Climate Change and Business: The Australia–
bioregions, 152
New Zealand Conference and Trade Expo, 19
Biotechnology Australia, 54
Climate Change Strategy, 6, 14, 15–16
Boat Harbour and Sisters Beach, Tasmania
Australian Greenhouse Office and, 20
co-regulation for product stewardship, 106
Boxing Day tsunami, 3, 162
Coastal Catchments Initiative, 63–4
Budget, Finance and Strategy Committee, 211
Indexes
Buenos Aires climate change conference, 17 results for performance indicators, 76

Buenos Aires Programme of Work on Adaptation coastal development, 6, 62
and Response Measures, 17 coastal water quality and wetlands conservation,
building practices 63–4
and climate change, 25 coastal zone management framework, 62
Bureau of Meteorology, 3, 9, 162 Coastcare, 75, 159
Bushcare, 145, 159 coasts and oceans, 6, 61–83
by-catch of seabirds, 176 see also Output 1.3: Coasts and oceans
Code of Organisational Behaviours
C Australian Antarctic Division, 213
cane toads, 49 codes of conduct, 213
Cape Denison site and Mawson’s huts, 180–1 Collaborative Australian Protected Areas
Carbon Sequestration Leadership Forum, 18 Database, 152
Carlton Gardens, 6, 91, 92 Commemoration of Historic Events and Famous
Census of Marine Life, 69 Persons programme, 99
Census of Antarctic Marine Life, 196 results for performance indicators, 100
Centralised Vessel Monitoring System commercial whaling
and illegal fishing, 171, 175 international diplomatic efforts in opposition to,
certified agreements, 215, 221, 222–3, 224, 228 3, 7, 171, 177–9
Charter for Public Service in a Culturally Diverse Commission for the Conservation of Antarctic
Society, 201–2 Marine Living Resources, 171, 175
ChemClear, 120 Commission on Sustainable Development (UN), 162
chemical risk assessments, 118 Commission on the Limits of the Continental
Chief Executive Instructions, 244 Shelf – Antarctica (UN), 174

Committee for Environmental Protection Convention on Wetlands of International
(Antarctic Treaty), 171, 172, 179, 180 Importance especially as Waterfowl Habitat
committees of Executive Roundtable, 210–11 (Ramsar Convention), 133
Commonwealth Disability Strategy, 202–3 and privately owned sites, 134–5
performance indicators, 233 corporate direction, 211
and procurement policies, 245 corporate governance
Commonwealth heritage, 91–5 main results, 208
Commonwealth Heritage List, 6, 91, 92 corporate governance framework
emergency listings, 93–4 internal review of, 7, 208, 209
Commonwealth Procurement Guidelines, 243, corporate plan, 211
244, 245, 247 see also medium-term corporate plan
Commonwealth reserves, 151 Corporate Strategies Division, 9, 158
see also protected areas Council of Managers of National Antarctic
community capacity building, 196 Programmes, 173, 186
community engagement, 195–6 courts and tribunals, 204
Community Information Unit, 201 see also environmental assessments and
Community Water Grants, 7, 129, 132–3 approvals
compensation and rehabilitation, 231 cross-cutting environmental work, 158–67
competitive tendering and contracting, 246 discretionary grants, 252–3
see also tender opportunities main responsibilities, 158
complaints data, 201 cultural diversity programmes, 228
compliance and enforcement capabilities, 6, 85 cultural heritage projects, 98–100
Compliance Executive Committee, 211 results for performance indicators, 100
conservation incentives, 145, 196 Cultural Heritage Projects Programme, 99
Conservation of Migratory Species of Wild Cycle Connect, 6, 32, 36
Animals, 176 results for performance indicators, 41
conservation zones, 151
D
Indexes
see also protected areas
Decade of Education for Sustainable
consultancy services, 246
Development (UN), 166
Consultative Committee, 228
Defeating the Weed Menace Programme, 49
contact for access to information, 207
degradable plastics, 108
contracting see competitive tendering and
Department of Agriculture, Fisheries and Forestry
contracting; exempt contracts
and Community Water Grants, 133
Convention Concerning the Protection of the
and National Action Plan for Salinity and
World Cultural and Natural Heritage (World
Water Quality, 146, 159
Heritage Convention), 91
and Natural Heritage Trust, 159
Convention for the Conservation of Antarctic
and regional forest agreements, 142
Seals, 171
and weeds, 49
Convention on Biological Diversity (UN), 8, 45,
Department of Foreign Affairs and Trade
46, 55
and trade and environment, 164
Convention on Climate Change (UN), 27
Department of Health and Ageing
Convention on International Trade in
Gene Technology Regulator, 118
Endangered Species of Wild Fauna and Flora
(CITES), 52, 66, 164
compliance and enforcement capabilities, 85
Convention on the Conservation of Antarctic
corporate governance, 208–14
Marine Living Resources (CCAMLR), 171, 174, 175
environmental assessments and approvals
future of, 176
process, 85
Convention on the Control of the Transboundary see also environmental assessments and
Movements of Hazardous Wastes and Their approvals
Disposal (Basel Convention), 114, 115 executive summary, 1–11
441
external scrutiny, 204–7 Environment Protection and Biodiversity
finances, 234–53 Conservation Act 1999, 2, 6, 8
managing the department, 193–253 and Antarctica, 179
summary of main results, 7 Productivity Commission and, 141, 142
organisation, 8–9 and threatened species, 47, 50
outcomes and outputs, 10 Environment Protection and Heritage Council,
role and functions, 8 33, 34
secretary’s review, 2–5 and co-regulation for product stewardship, 106
summary of main results, 6–7 and hazardous chemicals, 114, 117
total resources, 11 and National Packaging Covenant, 110
vision, 4–5 and plastic bags, 107, 108
workforce, 215–33 and review of National Pollutant Inventory, 113
Department of Transport and Regional Services and water recycling, 132
and emission standards, 37 see also National Environment Protection
diesel emissions, 37–8 Council
dioxins, 116 Environment Protection (Sea Dumping)
Director of National Parks, 9, 68, 151, 177 Act 1981, 84, 87
discretionary grants programmes, 248–53 environmental assessments and approvals, 84–9
Distinctively Australian measure, 91 matters of national environmental
divisional performance report see four-monthly significance, 6, 85
divisional performance report
see also Approvals and Wildlife Division;
divisional work plan see annual divisional
courts and tribunals; Output 1.4:
work plan
Environmental assessments and approvals
documents
environmental degradation, 2
categories of, 206
see also air pollution; persistent organic
Doha Declaration (WTO), 165
pollutants
DrumMuster, 120
environmental economics advice, 165
Indexes
E environmental education, 165–7

east Antarctic air link, 7, 171, 185–6 research, 166–7
ecologically sustainable development, 194–7 environmental effects of activities, 197–9
contribution of outcomes to, 197 environmental emergencies in Antarctica, 7, 171
Economic and Social Commission for Asia and Environmental Impact Assessment Guidelines—
the Pacific (UN), 163 Committee for Environmental Protection
Employee Assistance Programme, 230 (Antarctic Treaty), 179
employment agreements, 221–6 environmental impact assessments, 196
see also Australian workplace agreements; see also environmental assessments and
certified agreements approvals
employment status, 220–1 environmental impact decisions, 85–6, 86
energy efficiency, 21 environmental impacts, 7, 194–9
Envirofund, 159 environmental information, 161
environment environmental inspections
international negotiations, 8 Antarctica, 173
trade and, 164–5 environmental protection
see also Outcome 1: Environment Antarctica, 179–82
environment and heritage organisations see also environmental assessments and
support for, 167 approvals
Environment Investigations Unit, 85, 86 environmental reporting, 111, 161
Environment Policy Committee (OECD), 163 Environmental Research Institute of the
Environment Programme (UN), 15, 163 Supervising Scientist, 135
Environment Protection (Alligator Rivers Region) Environmental Resources Information Network
Act 1978, 121 (ERIN), 161

Environmental Water Allocation programme, 132
Environmental Watering Group, 132
G
Gene Technology Act 2000, 118
ethical standards, 213–14
European Union Gene Technology Regulator (Department of
bilateral relationship on climate change, 19 Health and Ageing), 118
Executive Roundtable, 210, 212 gene technology risk assessments, 118
committees of, 210–11 Generator Efficiency Standards, 20
executive summary, 1–11 genetic resource management, 45, 54–5
exempt contracts, 247 Gifts to the Nation programme, 99
external scrutiny, 204–7 results for performance indicators, 100
Global Biodiversity Information Facility, 56, 161
F Global Reporting Initiative, 111, 194
Federal Court
Nathan Dam case, 204 government outputs
finances, 234–53 delivery of, 211–12
financial performance, 234–6 graduate recruitment programme, 7, 215, 227
financial position, 243 Grants-in-Aid-National Trust, 98
financial resources, 11 results for performance indicators, 101
fisheries management Grants to Voluntary Environment and Heritage
in Southern Ocean, 174 Organisations programme, 167
see also Great Barrier Reef fisheries; reef
Great Barrier Reef, 63, 64
fisheries adjustment package
Great Barrier Reef Coastal Wetlands Protection
fishing
monitoring of, 175 Programme, 65
see also illegal fishing results for performance indicators, 76
fishing vessel monitoring see Centralised Vessel Great Barrier Reef fisheries
Monitoring System; fishing, monitoring of licence buy-out, 67
Flora of Australia, 56 Great Barrier Reef Marine Park, 62, 67, 87
Indexes
forest agreements Great Barrier Reef Marine Park Authority, 3, 9,
environmental aspects of, 142–3 25, 162
forest reserves Great Barrier Reef Marine Park Structural
Tasmania, 2
Adjustment Package, 67
forests
foundation: understanding of climate change, 24–7 great white shark, 6, 45, 58, 66, 78
results for performance indicators, 30 Greenhouse Action to Enhance Sustainability in
four-monthly divisional performance report, 212 Regional Australia, 23
Framework Convention on Climate Change (UN), Greenhouse Challenge, 20
16, 17, 25 Greenhouse Challenge Plus programme, 20
Framework for a National Approach to Integrated Greenhouse Friendly, 20
Oceans Management, 69 Greenhouse Gas Abatement Programme, 21
Framework for a National Cooperative Approach greenhouse gas emissions, 2, 6, 26, 141
to Integrated Coastal Zone Management, 62
and climate change, 15
Framework for Marine and Estuarine Water
management of, 19–23
Quality Protection, 63
Framlingham Aboriginal Trust, 72 results for performance indicators, 28–9
and Kooyang Sea Country Plan, 72 target, 2
fraud control, 213 see also Kyoto target — greenhouse gas
freedom of information, 205–7 emissions
Freedom of Information Act 1982, 205 see also National Greenhouse Gas Inventory
Fuel Quality Standards Act 2000, 37 (2003)
fuel standards, 6, 32 greenhouse gas projections, 26
see also vehicle emission and fuel standards groundwater see surface and groundwater
443
indoor air quality, 36
H industrial chemicals, 119, 120
hazardous chemicals, 114
industry see human settlements and industry
informed consent to importation of, 117
Industry, Communities and Energy Division, 8,
see also chemical risk assessments; National
9, 14
Environmental Risk Management
Framework for Chemicals
industry partnerships
hazardous substances regulation, 114–15
greenhouse gas emissions, 20–1
Hazardous Waste (Regulation of Exports and
information
Imports) Act 1989, 114, 115
contact for access to, 207
Heard Island and McDonald Islands Marine
information technology (IT)
Reserve, 177
new systems, 4, 7, 215, 216
heritage, 6, 90–104
inland waters, 7, 128–39
see also Commonwealth heritage; cultural
see also Output 1.7: Inland waters
heritage projects; movable cultural heritage;
Integrated Leadership Strategy, 228
national heritage; Output 1.5: Heritage;
integrated natural resource management, 195
world heritage
integrated reporting, 195
Heritage Division, 9, 90
integration principle
see also Output 1.5: Heritage
ecologically sustainable development, 195
heritage management, 94–5
intergenerational principle
heritage organisations see environment and
ecologically sustainable development, 195–6
heritage organisations
Intergovernmental Coastal Advisory Group, 62
Historic Events and Famous Persons
Intergovernmental Panel on Climate Change, 15
Commemoration of see Commemoration
Interim Biogeographic Regionalisation for
of Historic Events and Famous Persons
Australia, 152
programme
international
historic shipwrecks, 97–8
results for performance indicators
Indexes
air pollution, 42
Historic Shipwrecks Act 1976, 98
biodiversity and wildlife, 58
Historic Shipwrecks Programme, 97
climate change, 28
‘human resource scorecard’ report see monthly
heritage, 103
‘human resource scorecard’ report
inland waters, 137
human settlements and industry, 6, 105–27
International, Land and Analysis Division, 8, 9, 14
see also Output 1.6: Human settlements
I International Council on Monuments and Sites
illegal fishing, 171, 175 (ICOMOS), 97
Indigenous communities, 4 international engagement, 195–6
Indigenous heritage, 95–6 climate change, 3, 16–19
Indigenous heritage functions, 8 coordination, 162–5
Indigenous Heritage Programme, 96 environment, 8, Antarctica
see also Indigenous Protected Areas International Fund for Animal Welfare, 178
Programme; Maintenance and Protection international marine conservation, 70–1
of Indigenous Heritage Programme International Partnership on the Hydrogen
Indigenous Protected Areas Programme, 152, 154–5 Economy, 18
results for performance indicators, 156 International Polar Year, 186
see also South-east Regional Marine Plan International Steering Committee, 211
individual learning, 228 International Union for the Conservation of
Indonesia Nature and Natural Resources (IUCN)—World
and Antarctic cooperation agreements, 174 Conservation Union, 151
bilateral relationships, 164 International Whaling Commission, 7, 8, 171,
177, 178, 179

international whaling negotiations, 177–9 legislation
introduced marine pests, 6, 62 Outcome 2: Antarctica, 191
Introduced Marine Pests Programme Output 1.1: Atmosphere, 43
results for performance indicators, 76 Output 1.2: Biodiversity, 60
invasive species Output 1.3: Coasts and oceans, 83
threat abatement and control methods, 48 Output 1.4: Environmental assessments and
see also Senate report on invasive species approvals, 88
Output 1.5: Heritage, 104
Investors in People standard, 212
Output 1.6: Human settlements, 127
Investors in People status, 7, 215, 216
Output 1.7: Inland waters, 138
J Output 1.8: Land management, 149
Output 1.9: Parks and reserves, 157
J Craig Venter Institute
letter of transmittal, ii
biodiscovery agreement with, 55
liability for environmental emergencies in
Japan
Antarctica, 7, 171, 172
bilateral relationships, 164 licence buy-out
climate change, 19 Great Barrier Reef fisheries, 67
and commercial whaling, 7, 171, 177, 178 Living Murray, 129, 130–1
see also international whaling negotiations Living Murray Business Plan, 131
and ‘scientific’ whaling, 178–9 Living Murray Environmental Watering Plan, 131,
job classifications, 217–19 132
John Gorton Building, i local and regional action
and environmental effects of activities, 197–8 greenhouse gas emissions, 23
Junction Waterhole, 95 see also native vegetation, management
framework
K Local Greenhouse Action programme, 23
Kakadu National Park, 121 London Convention
Indexes
Knowledge Management Committee, 211 and sea dumping and sea installations
Kooyang Sea Country Plan, 62, 72 regulation, 87
Kyoto Protocol, 16–17, 26 Low Emissions Technology and Abatement
programme, 20–1
Kyoto target—greenhouse gas emissions, 6, 16, 20
Low Emissions Technology Demonstration
see also Tracking to the Kyoto Target 2004
Fund, 20
report
Low Head precinct, 100
L M
Lake Eyre Basin Maintaining Australia’s Biodiversity Hotspots
results for performance indicators, 137 Programme, 6, 45, 46
land, 7, 140–9 Maintenance and Protection of Indigenous
s ee also Output 1.8: Land management Heritage Programme
Land, Water and Coasts Division, 9, 44, 61, 128, 140 results for performance indicators, 101
see also Output 1.2: Biodiversity; Output 1.3: managing the department, 193–253
Coasts and oceans; Output 1.7: Inland summary of main results, 7
waters; Output 1.8: Land management Mandatory Renewable Energy Target scheme, 22
Land and Water Australia, 132, 135 Marine and Coastal Coordination Committee, 211
Landcare, 145, 159 marine conservation
Larsemann Hills oasis, 180 international, 70–1
regional, 71–5
Launceston Clean Air Industry Programme, 35
Marine Division, 8, 9, 61
Law Dome ice core project, 183–4
see also Output 1.3: Coasts and oceans
leadership and management, 208, 210, 228
marine life
learning and development, 227–8 climate change and, 183
445
marine pest management framework, 65–6
marine pests, introduced, 6, 62
N
National Action Plan for Addressing Dioxins, 116
see also Introduced Marine Pests Programme
National Action Plan for Environmental
marine planning Education, 165–6
regional, 2 National Action Plan for Salinity and Water
marine protected areas, 67, 68, 71 Quality, 64, 141, 146, 159
see also Heard Island and McDonald Islands National Market Based Instruments Pilot
Marine Reserve Programme, 165
Marine Protected Areas Programme national air quality standards, 33
results for performance indicators, 77 national air quality trends, 33
marine research cruises, 72 National Biodiversity and Climate Change Action
marine science Plan, 46
results for performance indicators, 81–2 National Biotechnology Strategy, 54, 118
marine species protection, 66 National Carbon Accounting System, 25, 27, 161
see also whale protection National Carbon Accounting Toolbox, 27
Marine Species Protection Programme National Centre for Tropical Wetland Research, 135
results for performance indicators, 77 National Chemical Information Gateway, 117
marine surveys, 6, 62, 73–5 National Chemical Reference Guide, 117
market research see advertising and market National Climate Change Adaptation Programme,
research 24–5
matters of national environmental significance, National Cultural Heritage Account, 98
6, 85 results for performance indicators, 102
Mawson station National Dioxins Programme, 116
renewable energy at, 181 National Environment Protection (Air Toxics)
Mawson’s huts, 180–1 Measure, 34
Measures for a Better Environment programme, National Environment Protection (Ambient Air
Quality) Measure, 33, 34
Indexes
37, 39
medium-term corporate plan, 211 National Environment Protection Council, 34, 113
Methane to Markets Partnership, 18 see also Environment Protection and Heritage
Council
migratory species protection, 66
National Environment Protection Council Act
see also Agreement on the Conservation
1994, 113
of Albatrosses and Petrels; Convention
National Environment Protection Council Service
on Wetlands of International Importance
Corporation, 113
especially as Waterfowl Habitat (Ramsar
Convention)
National Environment Protection (Diesel Vehicle
Millennium Ecosystem Assessment, 165
Emissions) Measure, 38
Minimum Energy Performance Standards, 21
National Environment Protection (National
ministerial and parliamentary services, 200
Pollutant Inventory) Measure, 112
Ministerial Council on Energy, 21 National Environment Protection (Used
mobility and development, 228 Packaging Materials) Measure, 110
monthly ‘human resource scorecard’ report, 212 National Environmental Education Council, 165,
Montreal Protocol to the Vienna Convention for 166
the Protection of the Ozone Layer, 38, 39, 164 National Environmental Education Network, 166
Moratorium on Seabed Drilling and Mining, 73 National Environmental Education Statement for
movable cultural heritage, 98 Australian Schools, 166
multilateral projects National Environmental Risk Management
climate change, 18 Framework for Chemicals, 117
Murray–Darling Basin Commission, 131–2 National Estate
Murray–Darling Basin Ministerial Council, 129, 130 Register of, 92

National Framework for Energy Efficiency, 14, 21 National Water Commission Act 2004, 130
National Framework for the Management and National Water Initiative, 7, 129–30, 132
Monitoring of Australia’s Native Vegetation, 141 National Water Quality Management Strategy, 132
National Greenhouse Gas Inventory, 25–6 National Weeds Programme
National Greenhouse Gas Inventory (2003), 15 results for performance indicators, 57
National Guidelines on Water Recycling— National Woodheater Audit Programme, 35
Managing Health and Environmental Risks, 132 native habitat
National Halon Bank, 39
protection of, 2
national heritage, 91–5
native vegetation
National Heritage List, 6, 91, 92
emergency listings, 93–4 loss of, 2
national heritage places, 93 management framework, 141–2
National Industrial Chemicals Notification and see also National Framework for the
Assessment Scheme, 117, 120 Management and Monitoring of
National Marine Bioregionalisation, 75 Australia’s Native Vegetation
National Market Based Instruments Pilot results for performance indicators, 57, 147
Programme natural climate cycle, long-term
National Action Plan for Salinity and Water and Antarctica, 171
Quality, 165 Natural Heritage Trust, 2, 3, 8, 158
National Ocean Disposal Guidelines for Dredged
actions
Material, 87
local scale, 159
National Oceans Advisory Group, 69
national scale, 158–9
National Oceans Office, 4, 8, 10, 61
employment agreements, 221 regional scale, 159
and fraud control, 213 and Australian Research Institute in Education
and marine surveys, 73–4 for Sustainability, 166
and oceans management, 69 and biodiversity, 45
and Oceans Policy, 68 and Bushcare, 145, 159
Indexes
and Oceans Portal, 70 and cane toads, 49
and regional marine plans, 71, 72 and Coastal Catchments Initiative, 64
see also Output 1.3: Coasts and oceans and coastal zone management, 62
National Packaging Covenant, 6, 106, 109–10 and Coastcare, 75, 159
National Pollutant Inventory, 112–13
and conservation incentives, 145
National Representative System of Marine
and consumer awareness programme re
Protected Areas, 68
National Reserve System, 7, 152–5 plastic bags, 108
National Reserve System Programme, 152, 153 and environmental assessment and approval
results for performance indicators, 156 related projects, 86
National Risk and Vulnerability Assessment and Environmental Water Allocation
climate change, 24 programme, 132
National Rivers Consortium, 135 and heritage management, 94
national standards for air toxic pollutants, 34 and Landcare, 145, 159
National Strategy for Ecologically Sustainable management of, 158–60
Development, 194 marine pest management, 65
National Strategy for the Management of
and marine protected areas, 68
Scheduled Waste, 114, 116
and marine species protection, 66
National System for the Prevention and
Management of Introduced Marine Pest and migratory species protection, 66
Incursions, 65 and National Reserve System Programme,
National Trust see Grants-in-Aid-National Trust 152, 153
National Vegetation Information System, 161 and native vegetation management, 141
National Water Commission, 130 and rangelands conservation, 144
447
and Reef Water Quality Protection Plan, 64 Occupational Health and Safety Committee, 229
results for performance indicators, 160 Occupational Health and Safety Policy, 229
and Rivercare, 136, 159 Occupational Health and Safety Policy and
and Tammar wallabies, 50 Agreement, 229
and threatened species, 48, 50 Ocean Biogeographic Information System, 69
and weeds, 49 ocean circulation
and wetlands, 134, 135 and climate change, 24
and whale and dolphin research and
‘ocean conveyer belt’
conservation, 41
Antarctica and, 171, 183
and wildlife industry regulation, 54
Oceania Secretariat of Renewable Energy and
Natural Heritage Trust Extension Wetlands
Energy Efficiency Partnership, 18
Programme, 64–5
oceans see coasts and oceans; Southern Ocean
Natural Heritage Trust of Australia Act 1997, 159 oceans management
Natural Resource Management Ministerial Council national agreement on, 69
and biodiversity, 45 Oceans Policy, 68–70, 71
and coastal zone management, 62 results for performance indicators, 78–9
and genetic resource management, 54 Oceans Portal, 70
and marine pest management, 65 Office of the Renewable Energy Regulator, 9, 22
and National Biodiversity and Climate Change oil recycling, 109
Action Plan, 46 online information, 201
and National Guidelines on Water Recycling, 132 online learning, 227
and National Reserve System, 152 organisation, 8–9
and national vegetation framework, 142 Organisation for Economic Cooperation and
and oceans management, 69 Development (OECD)
natural resource management planning, 73 environment performance review of New
Indexes
Natural Resource Management Programmes

Zealand, 164
Division, 9, 61, 90, 128, 140, 158
Environment Policy Committee, 163
see also Output 1.3: Coasts and oceans;
Outcome 1: Environment, 10, 13–167
Output 1.5: Heritage; Output 1.7: Inland
contribution of to ecologically sustainable
waters; Output 1.8: Land management
development, 197
New Zealand
and Antarctic cooperation agreements, 174 financial performance, 234–6
bilateral relationship on climate change, 19 resources, 237, 239–42
bilateral relationships, 164 summary of main results, 6–7
non-financial reporting, 111 Outcome 2: Antarctica, 10, 169–91
North Australian Marine Biodiversity Survey, 74–5 contribution of to ecologically sustainable
Northern Marine Plan, 62 development, 197
results for performance indicators, 80–1 discretionary grants, 253
Northern Planning Advisory Committee financial performance, 234–6
Northern Regional Marine Plan, 72 legislation, 191
Northern Regional Marine Plan, 72–3 main responsibilities, 170
main results, 171
O objectives, 170
occupational health and safety
resources, 191, 238
investigations, 232
summary of main results, 7
reports, 232
see also Australian Antarctic Division
Occupational Health and Safety Agreement
outcomes and outputs, 10
Australian Antarctic Division, 229

Output 1.1: Atmosphere, 10, 32–43 Output 1.5: Heritage, 10, 90–104
discretionary grants, 249 discretionary grants, 250–1
legislation, 43 legislation, 104
main responsibilities, 32 main responsibilities, 90
main results, 32 main results, 91
objectives, 32 objectives, 90
other annual reports—more detailed results, 43 other annual reports—more detailed results, 103
resources, 43, 237 resources, 104, 237
results for performance indicators, 41–2 results for performance indicators, 100–3
see also Policy Coordination and Environment see also Heritage Division; Natural Resource
Management Programmes Division
Protection Division
Output 1.6: Human settlements, 10, 105–27
Output 1.2: Biodiversity, 10, 44–60
discretionary grants, 251
legislation, 127
legislation, 60
main responsibilities, 105
main results, 106
main results, 45
objectives, 105
objectives, 45
other annual reports—more detailed results, 126
other annual reports—more detailed results, 60 resources, 127, 237
resources, 60, 237 results for performance indicators, 123–6
results for performance indicators, 56–9 see also Policy Coordination and Environment
see also Approvals and Wildlife Division; Protection Division; Supervising Scientist
biodiversity and wildlife; Land, Water and Division
Coasts Division; Parks Australia Division Output 1.7: Inland waters, 10, 128–39
Output 1.3: Coasts and oceans, 10, 61–83 discretionary grants, 251–2
discretionary grants, 249–50 legislation, 138
Indexes
legislation, 83 main responsibilities, 128
main responsibilities, 61 main results, 129
main results, 62 objectives, 128
objectives, 61 other annual reports—more detailed results, 138
other annual reports—more detailed results, 82 resources, 139, 237
resources, 83, 237 results for performance indicators, 136–8
results for performance indicators, 76–82 see also Land, Water and Coasts Division;
see also coasts and oceans; Land, Water and Natural Resource Management
Coasts Division; Marine Division; National Programmes Division; Supervising
Oceans Office; Natural Resource Scientist Division
Management Programmes Division Output 1.8: Land management, 10, 140–9
Output 1.4: Environmental assessments and discretionary grants, 252
approvals, 10, 84–9 legislation, 149
main results, 141
legislation, 88
objectives, 140
main results, 85
resources, 149, 237
objectives, 84
results for performance indicators, 147–8
resources, 89, 237
Output 1.9: Parks and reserves, 10, 150–7
see also Approvals and Wildlife Division; legislation, 157
environmental assessments and approvals main responsibilities, 150
449
main results, 151
objectives, 150
P
Pacific islands
bilateral relationships, 164
resources, 157, 237 packaging, 109–10
results for performance indicators, 156 see also National Packaging Covenant
see also Parks Australia Division Papua New Guinea
Output 1.10: Climate change, 10, 14–31 bilateral relationships, 163–4
discretionary grants, 248–9 parks and reserves, 7, 150–7
main responsibilities, 14 see also National Reserve System; Output 1.9:
main results, 15 Parks and reserves
objectives, 14–15 Parks Australia Division, 9, 44, 150
resources, 31, 237 and environmental effects of activities, 199
results for performance indicators, 28–30 see also Output 1.2: Biodiversity; Output 1.9:
see also Australian Greenhouse Office; Parks and reserves
Industry, Communities and Energy parliamentary committees, 205
Division; International, Land and Analysis people management plan see annual strategic
Division people management plan
Output 2.1: Influence in Antarctic Treaty System, performance and development scheme, 212, 216
10, 170 performance management, 226–7
resources, 191 performance management framework
results for performance indicators, 187–8 new, 208–9
s ee also Antarctic Treaty System performance pay, 224, 225, 226
Output 2.2: Protecting the Antarctic environment, perpetual conservation covenants, 141
10, 170 persistent organic pollutants, 116–17
resources, 191 Persistent Organic Pollutants Review Committee,
results for performance indicators, 188–9 116
petrels, 176
Indexes
see also protecting the Antarctic environment

Output 2.3: Understanding global climate system, Pew Center on Global Climate Change, 18
10, 170 Photovoltaic Rebate Programme, 22
planning and review, 211–13
resources, 191
plastic bags, 6, 106, 107–8
results for performance indicators, 189–90
Policy Coordination and Environment Protection
see also Antarctica, influence on climate
Division, 9, 32, 105, 158
Output 2.4: Undertake scientific work of
see also Output 1.1: Atmosphere; Output 1.6:
practical, economic or national significance,
Human settlements
10, 170
pollution and pollutants see air pollution;
resources, 191
persistent organic pollutants
pollution prevention, 196
see also Australian Antarctic Programme
portfolio, 9
outputs and targeted performance indicators changes to, 4, 8
new, 208–9 Portfolio Indigenous Affairs Coordination Group,
outside participation 210, 211
arrangements for, 206–7 precautionary principle
ozone depletion, 183 ecologically sustainable development, 195–6
ozone layer protection, 38–40 Preservation and Protection of Indigenous
Ozone Protection and Synthetic Greenhouse Gas Heritage programme see Indigenous Heritage
Account, 39 Programme
results for performance indicators, 41–2 principles of ecologically sustainable
Ozone Protection and Synthetic Greenhouse Gas development, 194, 195–6
Management Act 1989, 39, 40, 41 procurement benchmarks, 244

procurement guidelines, 244 Ranger uranium mine
Procurement Review Board, 245 contamination incidents at, 121–2
Product Stewardship Australia, 107 recovery plans for threatened species and
Product Stewardship for Oil Programme, 109 ecological communities, 45
Product Stewardship (Oil) Act 2000, 109 recycling
product stewardship schemes, 106–9 oil, 109
Productivity Commission packaging, 109, 110
inquiry by into native vegetation laws, 141, 142 used tyres, 107
inquiry by into the policy framework and water, 132
incentives for the conservation of reef fisheries adjustment package, 67
Australia’s historic built heritage, 95 Reef Water Quality Protection Plan, 63, 64
programme administration results for performance indicators, 76
Refrigerant Reclaim, 39–40
regional action see local and regional action
air pollution, 41
regional collaborations
biodiversity and wildlife, 56–7
and marine conservation, 71
coasts and oceans, 76–7
see also marine pest management framework
heritage, 100–1
regional marine planning coordination
human settlements and industry, 123–4
inland waters, 136–7 regional marine plans, 2, 62, 71–5
land, 147–8 results for performance indicators, 80–2
parks and reserves, 156 Regional Natural Heritage Programme, 96, 97
protected areas, 151 results for performance indicators, 101
Antarctica, 180–1 Register of Environment Organisations, 167
management, 151 Register of the National Estate, 92
see also marine protected areas renewable energy, 21–3
protecting the Antarctic environment, 179–82 see also Office of the Renewable Energy
see also Output 2.2: Protecting the Antarctic Regulator
Indexes
environment Renewable Energy and Energy Efficiency
protection of movable cultural heritage, 98 Partnership, 18
Protection of Movable Cultural Heritage renewable energy at Mawson, 181
Act 1986, 98 Renewable Energy Commercialisation
Protocol on Environmental Protection (Antarctic Programme, 22
Treaty), 171, 172, 173, 179 Renewable Energy Development Initiative, 21–2
public consultation, 206–7 Renewable Energy (Electricity) Act 2000, 23
purchased outputs see Natural Heritage Trust, Renewable Energy Equity Fund, 22
management of; protected areas, management Renewable Energy International Law Project, 18
purchasing and procurement, 243–5 Renewable Remote Power Generation
Programme, 22
Q reporting, 194
quarantine purchasing, 245
and Antarctica, 180 see also environmental reporting; integrated
Queensland Wetlands Programme, 64–5 reporting; non-financial reporting; State of
the Environment reporting; triple bottom
R line reporting
Ramsar Convention see Convention on Wetlands research, analysis and evaluation
of International Importance especially as results for performance indicators
Waterfowl Habitat (Ramsar Convention) air pollution, 42
rangelands biodiversity and wildlife, 59
results for performance indicators, 147 coasts and oceans, 79
rangelands conservation, 144 human settlements and industry, 126
see also Australian Collaborative Rangelands inland waters, 138
Information System land, 148
451
reserves see parks and reserves Risk Assessment Panel, 209, 212
resources risk awareness staff survey, 213
Outcome 1: Environment, 237, 239–42 risk management, 212–13
Outcome 2: Antarctica, 238 risk management policy, 212
Output 1.1: Atmosphere, 43, 237 Risk Managers Network, 213
Output 1.2: Biodiversity, 60, 237 Rivercare, 136, 159
Output 1.3: Coasts and oceans, 83, 237
Romania
Output 1.4: Environmental assessments and
and Antarctic cooperation agreements, 174
approvals, 89, 237
Rotterdam Convention on the Prior Informed
Output 1.5: Heritage, 104, 237
Output 1.6: Human settlements, 127, 237 Consent Procedure for Certain Hazardous
Output 1.7: Inland waters, 139, 237 Chemicals and Pesticides in International Trade,
Output 1.8: Land management, 149, 237 117
Output 1.9: Parks and reserves, 157, 237 Royal Exhibition Building, 6, 91, 92
Output 1.10: Climate change, 31, 237
Output 2.1: Influence in Antarctic Treaty S
System, 191, 238 salaries, base, 222–3
Output 2.2: Protecting the Antarctic salinity, 133
environment, 191, 238 see also National Action Plan for Salinity and
Output 2.3: Understanding global climate Water Quality
system, 191, 238 sanctuaries and other conservation measures
Output 2.4: Undertake scientific work of – whales, 179
practical, economic or national Scientific Committee on Antarctic Research, 186
significance, 191, 238 sea dumping and sea installations regulation, 87
summary tables, 236–42 Sea Installations Act 1987, 84, 87
total
secretary, 2, 210
Department of the Environment and
secretary’s review, 2–5
Heritage, 11, 234
Securing Australia’s Energy Future, 16, 23, 38
Indexes

managing the department Senate report on invasive species, 205
stakeholder relations, 200 senior executive service employees
Natural Heritage Trust, 160 employment agreements, 221, 222
Outcome 2: Antarctica, 187–90 mobility, 217
Output 1.1: Atmosphere, 41–2 remuneration, 225–6
Output 1.2: Biodiversity, 56–9 see also senior management
Output 1.3: Coasts and oceans, 76–82 Senior Executive Service Performance pay
Output 1.4: Environmental assessments and Guidelines, 226
approvals, 88 senior management, 210
Output 1.5: Heritage, 100–3 names and responsibilities, 9
Output 1.6: Human settlements, 123–6 service charter, 7, 200–1
Output 1.7: Inland waters, 136–8
Sharing Australia’s Stories programme, 99
Output 1.8: Land management, 147–8
Output 1.9: Parks and reserves, 156
shipwrecks see historic shipwrecks
Output 1.10: Climate change, 28–30
Output 2.1: Influence in Antarctic Treaty Sloan Foundation, 69, 186
System, 187–8 small and medium enterprises
Output 2.2: Protecting the Antarctic departmental usage of, 244
environment, 188–9 Solar Cities programme, 21
Output 2.3: Understanding global climate South-east Australian Climate Project, 25
system, 189–90 South-east Regional Marine Plan, 62, 68, 71–2
Output 2.4: Undertake scientific work of results for performance indicators, 81
practical, economic or national see also Indigenous Protected Areas
significance, 190 Programme

South Pacific Regional Environment Programme, Strategic Approach to International Chemicals
164 Management
South Pacific Whale Sanctuary, 179 United Nations Environment Programme, 115
South-west Regional Marine Plan strategic plan see annual strategic plan
results for performance indicators, 81 Strengthening Tasmania—Low Head precinct, 100
Southern Gulf Environmental Information Strengthening Tasmania—Tamar River pylons, 136
Programme, 135 summary of main results, 6–7
Southern Ocean Supervising Scientist Division, 9, 105, 121, 122,
changes in, 182–3 128, 135
and climate change, 24 and environmental effects of activities, 199
protection of, 174–7 see also Output 1.6: Human settlements;
Southern Ocean Sanctuary—whales, 179 Output 1.7: Inland waters
Southwest Regional Marine Plan, 73 surface and groundwater
Species Profile and Threats database, 161 interaction between, 132
staff Sustainability Reporting Library, 111
support for, 4, 7, 230 Sydney Harbour Federation Trust, 9
turnover and retention rates, 216–17
see also workforce T
staff surveys, 4, 215–16 Tammar wallabies, 50
risk awareness, 213 Tasmania
stakeholder awareness forest reserves, 2
results for performance indicators, 156 Tasmanian Community Forest Agreement, 7, 141,
air pollution, 42 143, 161
biodiversity and wildlife, 59 Tasmanian devil facial tumour disease, 49
coasts and oceans, 78 Tasmanian Regional Forest Agreement, 143
environmental assessments and approvals, 88 Tasmanian Wilderness World Heritage Area, 94
heritage, 103 tax concessions for environment and heritage
Indexes
inland waters, 138 organisations, 167
land, 148 tender opportunities, 244
stakeholder relations, 200–3 see also competitive tendering and contracting
results for performance indicators, 200 Threat Abatement of Invasive Species
stakeholders results for performance indicators, 56
engaging with, 7 Threat Abatement Plan for the Incidental Catch
Standards Australia (or By-catch) of Seabirds During Oceanic
and degradable plastics, 108 Longline Fishing, 176
Standing Committee on Antarctic Logistics and threat abatement plans, 47, 48
Operations, 186 marine, 66
State of the Air report, 33 threatened ecological communities
State of the Environment reporting, 161 recovery plans, 6, 45
State of the Environment reports, 3, 161 threatened species
statutory administration protection, 50
results for performance indicators, 102 see also marine species protection
air pollution, 42 recovery plans, 6, 45, 47–50
biodiversity and wildlife, 58 marine, 66
coasts and oceans, 78 results for performance indicators, 56
environmental assessments and approvals, Threatened Species Network, 48
88 Threatened Species Network Community Grants
heritage, 102 Programme, 48
inland waters, 137 Threatened Species Scientific Committee, 176
Stockholm Convention on Persistent Organic Torres Strait
Pollutants, 116, 117 marine planning, 73
453
Torres Strait Treaty, 73 Vienna Convention for the Protection of the
tourism management Ozone Layer, 38
Antarctica, 172 vision, 4–5
Tracking to the Kyoto Target 2004 report, 6, 15, 26
trade, and environment, 164–5 W
trade in wildlife see wildlife industry regulation waste reduction incentives, 196
triple bottom line reporting, 7, 111, 194, 195 water see surface and groundwater
tropical rivers and wetlands research, 135 water efficiency and labelling scheme for
tsunamis household appliances, 6, 106, 112
early warning system, 3 Water Efficiency Labelling and Standards Act
see also Boxing Day tsunami 2005, 112
Water Efficiency Labelling and Standards Scheme,
U 112
Uhrig Review, 208, 209–10 water management plans, 131–2
United Kingdom Ministerial Roundtable on water quality
Energy and the Environment, 17
hotspots, 63, 64
United Nations Commission on Sustainable
protection and improvement, 63–4
Development, 162
see also National Water Quality Management
United Nations Commission on the Limits of the
Strategy
Continental Shelf (Antarctica), 174
water recovery projects, 131
United Nations Convention on Biological
water recycling, 132
Diversity see Convention on Biological
water reform
Diversity (UN)
environmental aspects, 129–33
United Nations Convention on Climate Change, 27
United Nations Decade of Education for see also National Water Initiative
Sustainable Development, 166 water resources
United Nations Development Programme over-allocation of, 2
Indexes
Pacific islands, 164 water-saving projects, 2

United Nations Economic and Social Commission web sites, 201
for Asia and the Pacific, 163 weeds, 49
United Nations Environment Programme, 15, 163 see also National Weeds Programme
Strategic Approach to International Chemicals Wet Tropics of Queensland World Heritage Area,
Management, 115 94
United Nations Framework Convention on wetlands
Climate Change, 16, 17, 25 ecological character of, 134
United Nations open-ended Informal of international importance, 133–5
Consultative Process on Oceans and the Law of results for performance indicators, 136, 137
the Sea (UNICPOLOS), 70 see also Convention on Wetlands of
United Nations Organisation (UN) International Importance especially as
and marine conservation, 70 Waterfowl Habitat (Ramsar Convention)
United States of America see also tropical rivers and wetlands research
bilateral relationship on climate change, 18 whale protection, 51
uranium mining in Alligator Rivers Region, 121–2 see also Australian Whale Sanctuary;
sanctuaries and other conservation
V measures – whales
valuation principle
whaling see commercial whaling; international
ecologically sustainable development, 195, 196
whaling; international whaling negotiations
values, 214
whole-of-government policy development, 196
vehicle emission and fuel standards, 36–8
wildlife see biodiversity and wildlife
see also fuel standards
wildlife industry regulation, 52–4
Venter Institute see J Craig Venter Institute

wind forecasting capability, 22
Winda Mara Aboriginal Corporation
and Kooyang Sea Country Plan, 72
woodsmoke pollution, 35
workforce, 215–33
employment status, 220–1
by location, 11, 218–19
main results, 215
makeup of, 217–21
see also staff
workforce management, 212
Workforce Management Committee, 211, 212,
215, 227
work–life balance, 228
World Conservation Union see International
Union for the Conservation of Nature and
Natural Resources (IUCN)—World Conservation
Union
world heritage, 91–2
see also Asia–Pacific world heritage; Chinese
world heritage
World Heritage Convention see Convention
Concerning the Protection of the World
Cultural and Natural Heritage (World Heritage
Convention)
World Heritage List, 6, 91, 92
World Heritage—Pacific 2009 Strategy, 91
Indexes
World Meteorological Organization, 15
World Trade Organization (WTO)
and trade and environment, 165
Y
Your Building project, 21
455
Offices and bases—environment and heritage portfolio
Christmas Island
National Park
Darwin—Parks Australia North, Kakadu
Supervising Scientist National Park
Pulu Keeling National Park and

Cocos (Keeling) Islands Conservancy Townsville—Great Barrier Reef
Marine Park Authority
Uluru–Kata Tjuta National Park
Norfolk Island National Park

and Botanic Garden
Sydney—Sydney Harbour
Heard Island and Federation Trust
McDonald Islands
Mawson Station Booderee National Park
Melbourne— Canberra—Central office,
Davis Station Bureau of Meteorology Australian Greenhouse Office,
Australian National Botanic Gardens
Casey Station Office of the Renewable
Energy Regulator
Hobart—Australian Antarctic Division,
Macquarie Island
Hobart—Australian Antarctic Division,

Macquarie Island
Heard Island and

McDonald Islands Casey Station

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Department of the

Environment and Heritage

Main office at the John Gorton Building

How to contact the department

ii Department of the Environment and Heritage Annual Report 2004–05

2 Department of the Environment and Heritage Annual Report 2004–05

Changes to the portfolio

More support for staff

4 Department of the Environment and Heritage Annual Report 2004–05

Summary of main results

Protecting the environment (progress towards Outcome 1)

Biodiversity and wildlife

Coasts and oceans

Assessments and approvals

Human settlements and industry

6 Department of the Environment and Heritage Annual Report 2004–05

Parks and reserves

Advancing Australia’s Antarctic interests (progress towards Outcome 2)

Managing the department

Engaging with stakeholders

Improving the way the department operates

Supporting the department’s workforce

Changes since the 2004–05 Budget

Role and functions

8 Department of the Environment and Heritage Annual Report 2004–05

The Hon Greg Hunt MP

Department of the Environment and Heritage Bureau of Meteorology

Howard Bamsey Anthea Tinney Conall O’Connell

Great Barrier Reef

Outcomes and outputs

Outcome 1: The environment, Outcome 2: Australia’s interests in

Changes since the 2004–05 Budget

10 Department of the Environment and Heritage Annual Report 2004–05

Part of the Department’s Canberra-based staff.

12 Department of the Environment and Heritage Annual Report 2004–05

Outcome 1: The environment, especially those

Main responsibilities relevant to this output

14 Department of the Environment and Heritage Annual Report 2004–05

Australia’s Climate Change Strategy

International engagement on climate change

16 Department of the Environment and Heritage Annual Report 2004–05

Buenos Aires climate change conference

Other key international forums

18 Department of the Environment and Heritage Annual Report 2004–05

Greenhouse gas emissions management

Building industry partnerships—new programmes

20 Department of the Environment and Heritage Annual Report 2004–05

Building industry partnerships—ongoing programmes

Action on energy efficiency

Renewable energy—new programmes

commercialisation of important renewable energy projects. The initiative will

Renewable energy—ongoing programmes

22 Department of the Environment and Heritage Annual Report 2004–05

Local and regional action

Foundation: understanding of climate change

Australian Climate Change Science Programme

National Climate Change Adaptation Programme

24 Department of the Environment and Heritage Annual Report 2004–05

National Greenhouse Gas Inventory

estimates for different industry sectors

Also during the year an interactive Australian Greenhouse Emissions Information

Greenhouse gas projections

BUSINESSASUSUAL WITHEMISSIONREDUCTIONMEASURES