Title

Departmental appendices

A scientist using a pipette.

Appendix A1: Entity resource statement

Table 18: Entity resource statement, 2015–16
  Actual available appropriations for 2015-16
‘$000
Payments made 2015-16
‘$000
Balance remaining 2015-16
‘$000
1/ Ordinary Annual Services      
Departmental appropriation      

Prior year departmental appropriation

76,300 75,722 578

Departmental appropriation

428,096 337,508 90,588

s. 75 adjustments

1,414 836 1,414

s. 74 receipts

67,855 67,855 -

Total

573,665 481,085 92,580
Administered expenses      

Outcome 1

848,124 507,955  

Payments to corporate Commonwealth entities

947,464 947,464  

Total

1,795,588 1,455,419  
Total ordinary annual services 2,369,253 1,936,504  
2/ Other services      
Departmental non-operating      

Equity Injections

35,369 34,288 1,081
Total 35,369 34,288 1,081
Administered non-operating      

Administered Assets and Liabilities

30,938 18,447  

Payments to corporate Commonwealth entities - non-operating

35,916 35,916  

Total

66,854 54,363  
Total other services 102,223 88,651  
3/ Special Appropriations      
Special appropriation limited by amount      

Textile, Clothing and Footwear Investment and Innovation Program Act 1999

  21,325  

Automotive Transformation Scheme Act 2009

  207,346  

Offshore Mineral Act 1994

  -  

Australian Renewable Energy Agency Act 2011

  14,671  

Offshore Petroleum and Greenhouse Gas Storage Act 2006

  28,918  

Total special appropriation

  272,260  
Special Accounts      

Opening balance

158,422    

Appropriation receipts

37,975    

Non appropriated receipts to special accounts

36,494    

Payments made

  99,822  

Closing balance

    133,069
Total Resourcing and Payments 2,704,367 2,397,237  

Appendix A2: Expenses and resources for Outcome 1

Table 19: Expenses and resources for Outcome 1, 2015–16
Outcome 1:
Enabling growth and productivity for globally competitive industries through building skills and capability, supporting science and innovation, encouraging investment and improving regulation.
Budget 2015–16
$’000
Actual 2015–16
$’000
Variation 2015–16
$’000
Program 1: Supporting Science and Commercialisation      
Administered expenses      

Ordinary Annual Services (Appropriation Act No. 1)

197,576 191,708 5,868

Special Appropriations

0 0 0

Special Accounts

0 0 0

Expenses not requiring appropriation in the Budget year

0 (26) 26

Total for Program 1

197,576 191,682 5,894
Program 2: Growing Business Investment and Improving Business Capability
Administered expenses      

Ordinary Annual Services (Appropriation Act No. 1)

304,400 294,041 10,359

Ordinary Annual Services (Appropriation Act No. 1) credited to special accounts

48,511 22,664 25,847

Special Appropriations

241,699 219,279 22,420

Special Accounts

30,741 21,950 8,791

Expenses not requiring appropriation in the Budget year

2,262 (1,281) 3,543

Total for Programme 2

627,613 556,652 70,961
Program 3: Program Support      
Departmental expenses      

Departmental appropriation

467,078 470,250 (3,172)

Special Appropriations

0 0 0

Special Accounts

14,305 11,598 2,707

Expenses not requiring appropriation in the Budget year

35,233 43,063 (7,830)

Total for Program 3

516,616 524,911 (8,295)
Outcome 1 Totals by Appropriation Type      
Administered Expenses      

Ordinary Annual Services (Appropriation Act No. 1)

501,976 485,749 16,227

Ordinary Annual Services (Appropriation Act No. 1) credited to special accounts

48,511 22,664 25,847

Special Appropriations

241,699 219,279 22,420

Special Accounts

30,741 21,950 8,791

Expenses not requiring appropriation in the Budget year

2,262 (1,307) 3,569
  825,189 748,335 76,854
Departmental Expenses      

Departmental appropriation

467,078 470,250 (3,172)

Special Appropriations

0 0 0

Special Accounts

14,305 11,598 2,707

Expenses not requiring appropriation in the Budget year

35,233 43,063 (7,830)
  516,616 524,911 (8,295)
Total expenses for Outcome 1 1,341,805 1,273,246 68,559

Appendix A3: Workforce statistics

Table 20: Employee coverage by classification at 30 June 2016, ongoing and non-ongoing employees, Department of Industry, Innovation and Science and IP Australia SES
Classification Enterprise agreement coverage Employment arrangement Salary range
s. 24 determination Common law agreement Minimum ($) Maximum ($)
APS 1 29 0 0 37 787 47 818
APS 2 17 (1) 0 0 48 098 57 346
APS 3 143 (2) 0 0 56 196 69 946
APS 4 253 (4) 0 0 62 241 81 190
APS 5 345 (11) 0 0 69 831 83 659
APS 6 805 (37) 0 0 76 422 110 000
EL 1 720 (134) 7 0 96 794 134 568
EL 2 333 (182) 10 0 115 027 218 3611
CRS 1 10 0 0 128 315 153 549
CRS 2 3 0 0 147 754 180 936
SES Band 1 0 0 71 186 950 220 000
SES Band 2 0 0 19 251 416 284 960
SES Band 3 0 0 4 333 171 363 618
Total 2658 17 94    

APS = Australian Public Service; CRS = Chief Research Scientist; EL = Executive Level; SES = Senior Executive Service

  1. Recognition of specialist skills and knowledge.

Note: This table does not include casuals employed by the department at 30 June 2016. Numbers in brackets indicate employees whose salary is supplemented by an individual employment arrangement provided under the enterprise agreement. IP Australia’s SES figures are included with the department’s figures to ensure non-identification of individual recipients. Geoscience Australia’s SES figures are included in Table 48 in Chapter 12.

Table 21: Performance payments from 1 July 2015 to 30 June 2016, Department of Industry, Innovation and Science and IP Australia SES
Classification No. of recipients Aggregate
($)
Average
($)
Bonus payment
Minimum ($) Maximum ($)
APS 1–6 8 28 344 3453 2500 5460
EL 1 31 183 011 5904 2500 11 140
EL 2 48 485 454 10 114 1500 14 879
CRS 1–2 and SES Band 1–3 8 116 326 14 541 5000 35 000
Total 95 813 135      

APS = Australian Public Service; CRS = Chief Research Scientist; EL = Executive Level; SES = Senior Executive Service

Note: IP Australia’s SES figures are included with the department’s figures to ensure non-identification of individual recipients.

Table 22: Ongoing employees by classification and gender, 30 June 2015 and 30 June 2016, Department of Industry, Innovation and Science
Classification Female Male Total
2015 2016 2015 2016 2015 2016
APS 1 7 9 5 16 12 25
APS 2 5 3 16 13 21 16
APS 3 59 69 51 61 110 130
APS 4 139 146 70 75 209 221
APS 5 197 181 150 144 347 325
APS 6 351 449 293 317 644 766
EL 1 350 345 349 351 699 696
EL 2 135 131 191 199 326 330
CRS 1 2 2 9 8 11 10
CRS 2 0 0 3 3 3 3
SES Band 1 20 26 35 36 55 62
SES Band 2 5 4 8 13 13 17
SES Band 3 1 1 2 2 3 3
Secretary 1 1 0 0 1 1
Total 1272 1367 1182 1238 2454 2605

APS = Australian Public Service; CRS = Chief Research Scientist; EL = Executive Level; SES = Senior Executive Service

Note: This table does not include 133 casuals employed by the department at 30 June 2015 and 159 casuals employed by the department at 30 June 2016.

Table 23: Non-ongoing employees by classification and gender, 30 June 2015 and 30 June 2016, Department of Industry, Innovation and Science
Classification Female Male Total
2015 2016 2015 2016 2015 2016
APS 1 3 3 8 1 11 4
APS 2 1 0 1 1 2 1
APS 3 4 9 5 4 9 13
APS 4 30 19 11 13 41 32
APS 5 11 11 15 9 26 20
APS 6 33 16 23 23 56 39
EL 1 15 15 14 16 29 31
EL 2 5 3 20 10 25 13
CRS 1 0 0 0 0 0 0
CRS 2 0 0 0 0 0 0
SES Band 1 0 0 0 1 0 1
SES Band 2 0 0 0 0 0 0
SES Band 3 0 0 0 0 0 0
Secretary 0 0 0 0 0 0
Total 102 76 97 78 199 154

APS = Australian Public Service; CRS = Chief Research Scientist; EL = Executive Level; SES = Senior Executive Service

Note: This table does not include 133 casuals employed by the department at 30 June 2015 and 159 casuals employed
by the department at 30 June 2016.

Table 24: Ongoing and non-ongoing employees by classification and gender, 30 June 2015 and 30 June 2016, Department of Industry, Innovation and Science
Classification Female Male Total
2015 2016 2015 2016 2015 2016
APS 1 10 12 13 17 23 29
APS 2 6 3 17 14 23 17
APS 3 63 78 56 65 119 143
APS 4 169 165 81 88 250 253
APS 5 208 192 165 153 373 345
APS 6 384 465 316 340 700 805
EL 1 365 360 363 367 728 727
EL 2 140 134 211 209 351 343
CRS 1 2 2 9 8 11 10
CRS 2 0 0 3 3 3 3
SES Band 1 20 26 35 37 55 63
SES Band 2 5 4 8 13 13 17
SES Band 3 1 1 2 2 3 3
Secretary 1 1 0 0 1 1
Total 1374 1443 1279 1316 2653 2759

APS = Australian Public Service; CRS = Chief Research Scientist; EL = Executive Level; SES = Senior Executive Service

Note: This table does not include 133 casuals employed by the department at 30 June 2015 and 159 casuals employed by the department at 30 June 2016.

Table 25: Ongoing and non-ongoing employees by full-time or part-time status, 30 June 2015 and 30 June 2016, Department of Industry, Innovation and Science
Attendance type Ongoing Non-ongoing Total
2015 2016 2015 2016 2015 2016
Full-time 2154 2295 179 132 2333 2427
Part-time 300 310 20 22 320 332
Total 2454 2605 199 154 2653 2759

Note: This table does not include 133 casuals employed by the department at 30 June 2015 and 159 casuals employed by the department at 30 June 2016.

Table 26: Ongoing and non-ongoing employees by location, 30 June 2015 and 30 June 2016, Department of Industry, Innovation and Science
Location Ongoing Non-ongoing Total
2015 2016 2015 2016 2015 2016
ACT 1676 1748 112 98 1788 1846
NSW 365 389 51 40 416 429
Vic. 224 251 17 7 241 258
Qld 57 69 9 3 66 72
SA 33 34 6 2 39 36
WA 74 82 3 3 77 85
Tas. 21 20 1 0 22 20
NT 3 11 0 1 3 12
Overseas 1 1 0 0 1 1
Total 2454 2605 199 154 2653 2759

Note: This table does not include 133 casuals employed by the department at 30 June 2015 and 159 casuals employed by the department at 30 June 2016.

Table 27: Indigenous employees, 30 June 2015 and 30 June 2016, Department of Industry, Innovation and Science
Employment status 2015 2016
Ongoing 17 31
Non-ongoing 0 1
Total 17 32

Appendix A4: Advertising and market research

Appendix A4 sets out GST-inclusive payments the department made to external organisations for advertising and market research services in 2015–16. Payments of $12 700 or less (GST inclusive) are not reported.

Table 28: Payments for advertising and market research, 2015–16, Department of Industry, Innovation and Science
Name of recipient Services Total ($)
Advertising agencies
Clemenger BBDO Melbourne Pty Ltd Development and production of advertising campaign for country of origin labelling for food 1 100 000.00
Dentsu Mitchell Media Australia Pty Ltd Questacon branding—advertising in Better Homes and Gardens magazine 14 784.00
Embrace Society Culturally and linguistically diverse and Indigenous services for the advertising campaign for country of origin labelling for food 76 549.00
Mediaheads Promotion of National Science Week—production and distribution of radio and television ads 49 077.60
Mitchell & Partners Australia Pty Ltd Marketing for 2016 Graduate Programme 12 965.92
Whybin/TBWA Group Marketing of National Innovation and Science Agenda campaign 2 812 753.11
Direct mail
Union Offset Printers Mail-out to businesses affected by changes to country of origin labelling 34 903.00
Market research
Sandwalk Partners Science tourism—research market segments, develop products and conduct market surveys 33 396.00
National Capital Educational Tourism Project Educational science tourism—research market segments, develop products and conduct market surveys 24 640.00
AMR Interactive Pty Ltd National Innovation and Science Agenda campaign—developmental research and refinement 423 522.00
National Innovation and Science Agenda campaign—refinement and concept testing 631 246.00
ORIMA Research National Innovation and Science Agenda campaign—research and evaluation services 411 290.00
Consumer preferences for measurement markings on fast moving consumer goods packages 70 828.00
Colmar Brunton Consumer market research on Australia’s country of origin labelling framework 213 510.00
Research to inform the development of the advertising campaign for country of origin labelling for food 615 225.00
Hall & Partners Open Mind Evaluation of the effectiveness of the advertising campaign for country of origin labelling for food 136 473.00
Media advertising
Dentsu Mitchell Media Australia Pty Ltd Radioactive waste site press advertising 49 067.19
National Radioactive Waste Management Facility public notices 45 930.41
National Radioactive Waste Management Facility advertising 51 270.59
Public notice for Home Insulation Program Industry Payment Scheme 537 331.00
Mitchell & Partners Australia Pty Ltd Accelerating Commercialisation Director recruitment 17 555.89
Advertising for Australian Business Licensing Information Service 46 212.00
Advertising for the National Innovation and Science Agenda 16 280 460.81
Google advertising for IP Toolkit 27 679.43
Media placement for the country of origin labelling for food advertising campaign 4 737 278.00
Korn/Ferry International Pty Ltd CEO, Office of Innovation and Science Australia executive search 28 065.10
Polling organisations
Nil    

Appendix A5: Report on the operations of the
Australian Industry Participation Authority

The Australian Jobs Act 2013 (the Jobs Act) commenced on 27 December 2013. The primary objective of the Jobs Act is to provide full, fair and reasonable opportunities for Australian entities to bid for work on major Australian projects. The Jobs Act requires the development and implementation of an Australian Industry Participation (AIP) plan for each major Australian project with capital expenditure of $500 million or more, and establishes a statutory position, the Australian Industry Participation Authority (the Authority). Section 83 of the Jobs Act requires the Authority to prepare an annual report on its operations.

A permanent Authority has not been appointed. As an interim measure the Australian Government has appointed officers from the department as the Acting Authority (in accordance with section 71 of the Jobs Act).

On 20 May 2015, the Hon Ian Macfarlane MP appointed Dr Gary Richards for a 12-month term as the Acting Authority. The Hon Christopher Pyne MP appointed Mr Mike Lawson as the Acting Authority for a 12-month term with effect from 20 May 2016. Dr Gary Richards is the Delegate of the Acting AIP Authority.

The Authority and the Jobs Act

The Authority’s role is to evaluate, approve and publish summaries of AIP plans and to monitor and report on the implementation of plans. AIP plans apply the AIP National Framework principles and outline how a project proponent will provide full, fair and reasonable opportunity to Australian entities to supply goods and services to a project. The Jobs Act also requires compliance reporting on the AIP plan for the project’s construction phase and two years into the operations phase.

The Authority approved seven AIP plans for projects with total capital expenditure of more than $9.65 billion in 2015–16.

Monitoring

The Authority employs a number of strategies to encourage major project proponents to comply voluntarily and deal with non-compliance appropriately. These include promoting awareness of the Jobs Act, engaging with project proponents to promote compliance, and monitoring compliance.

The Authority’s monitoring of industry activity for compliance with the Jobs Act is ongoing. A database of current and future projects has been developed through analysis of information on major projects gathered from a range of publicly available and internal sources, including Deloitte Access Economics’ quarterly Investment Monitor, Australian Securities Exchange notices, the Office of the Chief Economist’s Resources and Energy Major Projects listings, the Mining Intelligence Center website, the Construction Intelligence Center website, AusIndustry’s state and territory managers’ reports, and announcements on national media.

In 2015–16, the Authority:

  • wrote to 10 project proponents alerting them to their potential obligations under the Jobs Act and providing guidance on meeting their obligations
  • received formal notification of 16 major projects with current or future obligations under the Jobs Act
  • approved seven draft AIP plans and published the AIP plan summaries at www.industry.gov.au/aip within the prescribed one-day time frame in accordance with the Jobs Act
  • agreed to the withdrawal of five approved AIP plans due to cancellation of projects, reduction in capital expenditure below the Jobs Act’s threshold and amalgamation of projects
  • agreed to two replacement AIP plans due to changes to projects
  • accepted that one major project had met the requirements under the Australian Jobs (Australian Industry Participation) Rule 2014 for an exception to providing a draft AIP plan
  • received, evaluated and accepted 18 AIP plan compliance reports.

Consultations

The Authority continued to work closely with major project proponents to help them better understand and meet their obligations under the Jobs Act. The Authority also engaged with state governments and Industry Capability Network stakeholders to discuss issues on the Jobs Act, exceptions or projects with Jobs Act obligations. The Authority’s consultations ensure that project proponents and their supply chains are aware of and understand their obligations under the Jobs Act, and that Australian entities are aware of and understand the opportunities available to them on major projects through the use of AIP plans.

Regulator Performance Framework

As part of its commitment under the government’s Regulator Performance Framework, the Authority must self-assess its performance once every 12 months. The Authority conducted a survey to obtain feedback and comments on its performance from 10 selected stakeholders, including those with AIP plans under the Jobs Act.

The Authority’s performance is being assessed against the principles of good regulatory practice, including:

  • administrative fairness, efficiency and effectiveness
  • achievement of regulatory objectives
  • opportunities for future improvement to reduce regulatory burden and costs.

The self-assessment process maps the Authority’s current baseline regulatory practices and articulates a pathway to better practices. The 2015–16 self-assessment report, including evidence collection and analysis, will be included in the Authority’s 2016–17 annual report.

Industry Capability Network Limited

An industry capability network supports the AIP National Framework by connecting potential suppliers to project opportunities through a national database of industry capability and project opportunities. The government has committed funding to the Industry Capability Network Limited to 30 June 2017 to ensure continuity of capability-matching services to supply chain participants that have paid subscriptions to the network.

Closure of the Enhanced Project By-law Scheme

The government announced the closure of the Enhanced Project By-law Scheme in the 2016–17 Federal Budget with immediate effect.

The requirement under the Jobs Act for major projects ($500 million and above) to lodge and implement an AIP plan is unaffected by the closure of the scheme.

There are other ways in which suppliers can access opportunities to bid for work, including state and territory industry participation plans, procurement websites such as the Industry Capability Network Gateway, industry briefings, and social licence initiatives undertaken by project proponents.

As at 29 April 2016, 25 summaries for the AIP plans under the scheme have been published on the department’s website.

The Authority and Commonwealth procurements, grants and investments

On 28 July 2009, the government released the Australian Government Procurement Statement announcing that it would strategically apply the AIP National Framework principles to large Commonwealth procurements. Since 1 January 2010, companies bidding on Commonwealth procurements over $20 million have been required to put AIP plans in place. This requirement was extended on 1 July 2012 to Commonwealth grants and Commonwealth-funded infrastructure projects, and on 1 July 2013 to selected Clean Energy Finance Corporation investment projects.

The Authority ensures that government agencies and potential suppliers are aware of and understand their obligations for Commonwealth procurements, grants and investments. The Authority assists them to meet their obligations by developing user guides and templates for AIP plans and processes. The Authority also published guidance in the Department of Finance’s Procurement Bulletin in May 2016 to highlight that AIP policy is a procurement-connected policy.

AIP plans in Commonwealth funding

As at 30 June 2016, a total of 321 AIP plans had been approved for Commonwealth procurements and grants and Clean Energy Finance Corporation investments over $20 million (Table 29).

Table 29: AIP statistics in Commonwealth funding, as at 30 June 2016
AIP plans in Commonwealth procurements (since 1 January 2010)
No. of AIP plans approved 304
No. of released approaches to market with AIP plans 58
No. of approaches to market with executed contracts with AIP plans 56
Value of contracts with AIP plans $13.9 billion
No. of approaches to market exempted from AIP plans 110
AIP plans in Commonwealth grants and Commonwealth-funded infrastructure projects (since 1 July 2012)
No. of AIP plans approved 121
No. of grants exempted from AIP plans 122
AIP plans in Commonwealth investments—Clean Energy Finance Corporation (since 1 July 2013)
No. of AIP plans approved 5
No. of investments exempted from AIP plans 4
   
  1. Two of the plans were for projects included under the National Partnership Agreement on Land Transport Infrastructure Projects.
  2. Six grant programmes have been provided exemptions and six exemptions have been granted to individual grants under a programme allowing exemptions.

Publication of summaries

Since 1 July 2012, the department has published summaries of AIP plans online, including details on how project proponents will acquire and use information on Australian industry capabilities and how they will communicate opportunities to Australian suppliers.

As at 30 June 2016, 22 summaries have been published:

  • 10 for Commonwealth procurements
  • seven for Commonwealth grants
  • five for Clean Energy Finance Corporation investments.

Service improvements

In December 2015, the AIP content on the departmental website (www.industry.gov.au/aip) was refreshed. This included:

  • revising the content to make it easier to understand
  • providing stronger encouragement to stakeholders to contact the AIP team directly before drafting an AIP plan
  • providing a series of questions to assist stakeholders in determining which type of AIP plan might be applicable to their project
  • removing outdated information
  • adding a feedback and complaints section
  • updating AIP templates to incorporate recent minor changes.

Appendix A6: Reports addressing other special legislative requirements

This appendix sets out information that the department is required to report on each year as part of its administration of the following legislation:

  • Automotive Transformation Scheme Act 2009
  • Greenhouse and Energy Minimum Standards Act 2012
  • Offshore Petroleum and Greenhouse Gas Storage Act 2006.

Automotive Transformation Scheme Act

The Automotive Transformation Scheme (ATS) aims to encourage competitive investment and innovation in the Australian automotive industry to place it on an economically sustainable footing, improve environmental outcomes, and promote the development of workforce skills.

Section 27A of the Automotive Transformation Scheme Act 2009 requires the Secretary to report annually on assistance paid to ATS participants (Table 30) and the Australian automotive industry’s progress towards achieving economic sustainability, environmental outcomes and workforce skills development (Table 31).

Table 30: Total assistance paid to ATS participants for the 12-month period ending 31 March 2016
Participants Capped assistance
($)
Uncapped assistance ($) Total assistance
($)
Motor vehicle producers 133 643 662 28 233 919 161 877 581
Automotive component producers 77 633 165 0 77 633 165
Automotive machine tool producers 1 560 061 0 1 560 061
Automotive service providers 398 274 0 398 274
Total 213 235 162 28 233 919 241 469 081
Table 31: Progress made by ATS participants in achieving economic sustainability, environmental outcomes, and workforce skills development during the 12-month period ending 31 March 2016
Economic sustainability
Capability development 80 per cent of ATS participants reported increased capability through participation in change management processes, down from 81 per cent in the previous year.
Business performance 74 per cent of ATS participants reported improved business performance through increased productivity, a decrease from 83 per cent in the previous year; 67 per cent reported that they had found new customers, up from 63 per cent in the previous year.
Environmental outcomes
Manufacturing process 82 per cent of ATS participants reported better environmental outcomes resulting from improved manufacturing processes, down from 84 per cent in the previous year.
Environmentally sustainable cars 51 per cent of ATS participants reported contributing to the manufacture of more environmentally sustainable cars, up from 48 per cent in the previous year.
Workforce skills development
Applicable post-school qualifications ATS participants reported either decreases or no changes in all post-school qualifications within their workforces. Specifically, 25 per cent reported that their workforces had certificate I and II qualifications (down 8 percentage points), 19 per cent had certificate III and IV qualifications (down 6 percentage points), 11 per cent had other trade qualifications (down 1 percentage point), 6 per cent had diplomas or advanced diplomas (no change), and 24 per cent had bachelor degrees or higher qualifications (no change).

Source: ATS participants’ updated business plans provided under regulation 2.27 of the Automotive Transformation Scheme Regulations 2010.

Greenhouse and Energy Minimum Standards Act

This section is prepared in accordance with section 175 of the Greenhouse and Energy Minimum Standards Act 2012 (GEMS Act). It covers the operation of the GEMS Act from 1 July 2015 to 30 June 2016.

The GEMS Act supports the development and adoption of appliances and equipment that use less energy and result in fewer greenhouse gas emissions than competing products. The Act commenced on 1 October 2012 and replaced seven overlapping pieces of state and territory legislation and four state regulators with one national regulator, simplifying the system for manufacturers and importers of regulated appliances and equipment. The department administers the GEMS Act through the Equipment Energy Efficiency (E3) programme and the GEMS Regulator.

The E3 programme promotes greater energy efficiency for regulated products by enabling consumers to make informed choices to improve energy efficiency and reduce greenhouse gas emissions. The main policy tools the programme uses are mandatory Minimum Energy Performance Standards and Energy Rating Labels for appliances and equipment.

At 30 June 2016, a total of 22 determinations were in effect under the GEMS Act. The determinations are legislative instruments that specify GEMS requirements, including requirements for Minimum Energy Performance Standards and Energy Rating Labels for products regulated under the GEMS Act. In the course of 2015–16, the GEMS Regulator approved 5027 applications and responded to 1186 enquiries. Registration applications were approved in 3.3 days on average. Two exemption requests were granted by the GEMS Regulator in 2015–16.

The department and the GEMS Regulator work cooperatively with state and territory agencies to administer the GEMS Act and develop the E3 programme under an Inter-Governmental Agreement. Australia also collaborates on energy efficiency standards with New Zealand under the E3 programme and the Inter-Governmental Agreement, ensuring the greatest net benefit for both countries.

Governance

The E3 programme is overseen by the Energy Efficiency Advisory Team, which reports to the Council of Australian Governments’ Energy Council. The advisory team comprises representatives from Commonwealth, state and territory government agencies and from the New Zealand Government.

Achievements

The department commissioned a review of the Inter-Governmental Agreement, the GEMS Act and the E3 programme. The review found that significant energy cost savings are likely to be realised by the programme, and in a cost-effective manner. The review identified costs for consumers, including a narrower range of products in some categories, but concluded that, overall, the costs are outweighed by savings on energy bills for consumers and businesses.

The Energy Council accepted all but three of the recommendations from the review. The Energy Efficiency Advisory Team implemented the accepted recommendations, which included completing a review of the priorities for the E3 programme. The new priorities were accepted by the Energy Council.

The department surveyed stakeholders in 2015–16 to gauge the overall level of satisfaction with the GEMS product registration process. A total of 77 per cent of respondents were satisfied with the product registration process overall and 80 per cent agreed that registration applications were processed by the GEMS Regulator in a timely manner.

Compliance and enforcement

The GEMS Regulator monitors and enforces compliance with the GEMS Act by:

  • conducting engagement and education activities
  • verifying compliance
  • investigating non-compliance
  • responding to non-compliance.

The GEMS Regulator, assisted by GEMS inspectors, manages a risk-based, intelligence-driven compliance monitoring programme that oversees:

  • check testing—to verify, through laboratory testing, whether models of GEMS products meet relevant GEMS-level requirements and the energy efficiency claims of manufacturers and suppliers
  • market surveillance—to ensure GEMS products meet GEMS registration and labelling requirements.

During 2015–16, the GEMS Regulator completed check tests of 103 models of GEMS products. Of these, 76 met GEMS requirements, and 27 did not. In response, the GEMS Regulator cancelled 11 registrations and took alternative enforcement actions against 16 models.

Market surveillance activities revealed high levels of registration compliance for a range of household GEMS products. Labelling compliance results, however, revealed room for improvement for other products, notably in the industrial sector. GEMS inspectors are working closely with that sector and will conduct follow-up market surveillance to ensure compliance.

The GEMS Regulator received 45 allegations of suspected non-compliance with the GEMS Act from consumers, industry and government departments. The majority of these allegations related to the supply of unregistered GEMS products and labelling issues. The GEMS Regulator investigated each allegation and, where appropriate, engaged with the supplier to ensure compliance.

Revenue

In 2015–16, revenue from registration fees was $2 349 140.

Communication

The GEMS Regulator assists responsible parties to comply with the GEMS Act. To achieve this, the GEMS Regulator:

  • informs stakeholders about the E3 programme and the operation of the GEMS Act
  • informs stakeholders about registration requirements under the GEMS Act, including through the energyrating.gov.au website
  • responds to queries through emails to energyratingwebsite@environment.gov.au
  • coordinates national marketing and communication projects to support new, and improve existing, energy efficiency programmes
  • consults with industry and other interested parties on developing and implementing energy labelling and associated programmes
  • monitors and reports on programme performance, achievements and enforcement.

Offshore Petroleum and Greenhouse Gas Storage Act

The National Offshore Petroleum Titles Administrator (NOPTA) is appointed by the Secretary, pursuant to section 695A of the Offshore Petroleum and Greenhouse Gas Storage Act 2006. The roles and functions of the Titles Administrator are described in section 695B of the Act and the Titles Administrator is supported by a branch of the department’s Resources Division.

NOPTA was established on 1 January 2012 as part of the Australian Government’s reform programme for the Commonwealth offshore oil and gas industry. NOPTA is responsible for providing technical advice and information to the responsible Commonwealth Minister and the relevant State and Territory Ministers, collectively named the Joint Authority, in support of the regulation of Australia’s offshore petroleum resources.

An independent statutory triennial ministerial review of NOPTA was completed on 30 June 2015. The review considered NOPTA’s effectiveness in contributing to the efficiency of the decision-making by a Joint Authority for a state or the Northern Territory. The report was tabled in parliament on 16 September 2015 and found NOPTA to be effective. The government response to the review was tabled on 2 December 2015. The government examined each of the 12 recommendations and noted six, accepted five and agreed in principle with one.

NOPTA operates from two sites, Perth and Melbourne. In Perth, it is co-located with the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

NOPTA’s expenses are funded by the offshore petroleum and greenhouse gas industries through cost recovery.

In 2015–16, NOPTA:

  • hosted International Upstream Forum 7 in Melbourne, which was attended by delegates representing 11 countries; the event was highly successful in forging strong links with overseas jurisdictions
  • completed its annual stakeholder survey in May 2016, which indicated a very high level of satisfaction with NOPTA’s staff, particularly their technical competence, approachability, responsiveness and professionalism
  • completed a comprehensive review of its cost recovery arrangements in consultation with titleholders and stakeholders; the updated Cost Recovery Implementation Statement will come into force from 1 July 2016
  • published its inaugural annual report of activities for 2014–15
  • established the National Offshore Petroleum Data Integration Project with Geoscience Australia to replace state-based manual systems with a comprehensive digitised holding of offshore petroleum data
  • increased geotechnical and reservoir engineering capacity and commenced audits of fields, including performance reviews and compliance monitoring
  • continued to enhance its relationship with NOPSEMA to simplify and streamline processes for industry, including providing web-based services to NOPSEMA
  • published the Operating protocols for offshore petroleum Joint Authorities and supporting institutions on the NOPTA website to enhance the level of transparency for industry and stakeholders in relation to application processing and decision-making time frames, and continued to publish monthly reports of performance statistics.