Our objectives

We work to achieve our purpose through 3 strategic objectives. This part of the annual performance statements reports results against the high-level performance criteria for these objectives.

Objective 1: Increase, improve and maintain markets

Performance criterion: The trend in value of agricultural exports increases in real terms over time

Measure	The value of food and fibre exports exceeds the average value of the previous 10 years
Source	Portfolio Budget Statements 2018–19, page 26 Corporate Plan 2018–19, page 12
Result	Achieved

In 2018–19 the value of agriculture, fisheries and forestry exports is forecast to be $52.5 billion, still higher than the 10-year average to 2017–18 of $48.1 billion (expressed in 2018–19 dollars). This is slightly lower than agricultural, fisheries and forestry exports of $55.1 billion in 2017–18 (Figure 6).

Exports volumes and values declined in 2018–19 because of dry conditions in the eastern states that limited crop production and export supplies. The decline was partially offset by a depreciation of the Australian dollar. Export values for grains, oilseeds and pulses fell about 18%, making up the majority of the decline.

More detailed information is available from the March 2019 edition of ABARES Agricultural Commodities.

Figure 6 Value of rural exports in real terms, 2008–09 to 2018–19

Note: The 10-year average is based on ABARES and Australian Bureau of Statistics data for the period 2008–09 to 2017–18. p The value of 2018–19 exports is based on preliminary estimates.

Objective 2: Encourage agricultural productivity

Performance criterion: Portfolio industries record an increase in productivity

Measure	Average annual productivity growth is equal to or exceeds average annual market sector productivity growth of the previous 10 years.
Source	Portfolio Budget Statements 2018–19, page 26 Corporate Plan 2018–19, page 12
Result	Achieved

Over the 10 years to 2018–19 average annual productivity growth for the agricultural, forestry, and fisheries sectors was 2.01%. This continued to be higher than annual market sector productivity growth, which averaged 0.32% over the same period.

Total factor productivity (TFP) is used as the measure of productivity and is calculated on a value-added basis. Agricultural productivity is susceptible to significant volatility because of seasonal conditions, so we have used the trend of TFP between 1995–96 and 2018–19 to calculate productivity growth. Data are sourced from the Australian Bureau of Statistics, with a preliminary estimate for 2018–19.

Objective 3: Support sustainable, high-quality natural resources

Performance criterion: The quality of the resource base is maintained or improved

Water

Progress continued to be made in 2018–19 towards meeting the ‘bridging the gap’ water recovery targets under the Murray–Darling Basin Plan. Further water recovery is required in some individual catchments to meet the Sustainable Diversion Limits (SDLs) in the Basin Plan. Further recovery of efficiency measures is also required to meet the 62GL target to allow the full supply contribution to be utilised.

The Australian Government continues to work with Basin state governments to deliver all water recovery required by the Basin Plan. All factors affecting the achievement of the water recovery targets are being monitored. Basin states are working with the Murray–Darling Basin Authority to update planning assumptions. These could include changes to cap factors that may affect the extent of the remaining gap bridging water recovery volumes. The final outcome will not be known until all state Water Resource Plans (WRPs) are finalised.

As at 30 June 2019 water entitlements of 2,028 GL had been secured or agreed in funding contracts towards ‘bridging the gap’ to the SDLs in the Basin Plan. This total included 163.5GL recovered by Basin states. Of this, 1,853GL is registered with the Commonwealth Environmental Water Holder (CEWH). State recoveries are not held by the CEWH. All figures are in long-term average annual yield terms.

In 2018–19 the final surface water recovery target was influenced by factors including settlement of shared reduction amounts for individual catchments and the release of updated NSW cap factors. The target remains uncertain because of delays in accrediting WRPs and other Basin states releasing updated cap factors. Water recovery activities were affected by delays in delivery of water from and variations to contracted infrastructure projects and by the need to implement new socio-economic criteria for efficiency measures projects that were agreed at the December 2018 Murray–Darling Basin Ministerial Council.

As at 30 June 2019, 34.8 GL had been secured towards bridging the gap to the groundwater SDLs in the Basin Plan. This total is registered with the CEWH. In 2018–19 we ran a series of successful open tenders to recover groundwater in Queensland.

As at 30 June 2019, 1.9 GL had been secured or agreed in funding contracts towards the 62 GL efficiency measures target. Of this, 1.3 GL is registered with and held by the CEWH and is included on the register of efficiency measures in accordance with Basin Plan. For the 2019–20 water year the adjustment to SDLs will be reduced from 605GL to 544GL per year in accordance with Basin Plan provisions. This figure will be increased in future years as efficiency measures are implemented.

The Australian Government is working with Basin states to recover further water through efficiency measures. This includes state-led proposals to deliver the initial 62 GL and investment in water saving projects through the Water Efficiency Program to deliver the remainder of the 450 GL by 2024.

SNAPSHOT 1: Responding to Darling River fish deaths

Fisheries

The percentage of fish stocks solely managed by the Commonwealth that are not overfished has improved, increasing from 72% in 2016 to 74% in 2017. The number of fish stocks classified as ‘uncertain if overfished’ fell from 11 to 10. The number of stocks classified as overfished was steady (Figure 7).

Figure 7 Australian managed fish stocks 2004 to 2017

Based on the ABARES Fishery status reports 2018. Status is assessed retrospectively for the previous year.

Agricultural land

The Australian Government has contracted natural resource management (NRM) unit service providers to deliver activities and projects against Regional Land Partnerships outcomes in each NRM unit. We have run workshops for NRM regional staff and are making technological enhancements to support the data collection processes for groundcover comparisons.

The workshops have helped NRM regional staff increase their capacity to:

• understand the role of groundcover in landscape protection
• establish baseline groundcover levels
• use the baseline to establish locally relevant targets
• use available groundcover data to monitor and report under the National Landcare Program.

The technological enhancements to the Rangeland and Pasture Productivity (RaPP) Map tool will support timely and cost-efficient information to underpin improved reporting of groundcover at the regional and national scale. This will address the National Landcare Program Phase Two priority areas for investment—wind and water erosion.

The projects relating to data collection and technological enhancements are due for completion in late 2019.

SNAPSHOT 2: A new Chief Environmental Biosecurity Officer

Our functions

We deliver our objectives through 6 broad categories of activities. Through these functions, we strive to provide the most effective support to primary industries, regulated businesses and our other stakeholders.

This part of the annual performance statements shows our performance in delivering these functions.

Function 1: Regulation and service delivery

Performance criterion: Effective intervention on compliance pathways

Biosecurity import screening

The post-intervention compliance rate is the percentage of international mail articles and air passengers that were compliant after intervention. The rates shown in Table 3 indicate we are highly effective at promoting and enforcing compliance in these pathways.

Table 3 Post-intervention compliance rate, 2014–15 to 2018–19

Post-intervention compliance relies on several factors: the before-intervention compliance rate of arriving passengers or mail (the inherent risk of the pathway); and our ability to intervene with non-compliant passengers or mail on arrival in Australia.

We have a range of strategies to maintain and improve the compliance rate in the passenger and mail pathways, including:

• ‘Don’t be sorry, just declare it’ communication and education activities
• air traveller and mail profiling for higher-risk goods.

Imported food safety

The overall compliance rate for imported food inspections in 2018–19 was 98.3%, compared to 98.5% in 2017–18. The compliance rate has remained steady.

See our imported food inspection data on our website.

SNAPSHOT 3: Protecting Australia from animal diseases

Live animal exports

We are committed to ensuring compliance with the Exporter Supply Chain Assurance System (ESCAS). The system aims to ensure the humane treatment and handling of Australian livestock from arrival in an importing country to the point of slaughter. Since the implementation of ESCAS in July 2011, more than 22 million animals have been exported to 26 countries under the system.

In 2018–19 we completed investigations into 45 reports of alleged regulatory infringements. Of these, 34 were self-reports by exporters, 8 reports were made by third parties, and 3 alleged infringements were identified by the department or an Independent Observer.

Our response to investigation findings included removing facilities from approved supply chains, undertaking additional independent audits, or requiring exporters to provide further information about proposed exports. In some cases we applied additional conditions to export approvals, set further reconciliation requirements to account for animals in supply chains, or required exporters to provide more training to improve animal handling practices.

In 2018 we cancelled the export licences of Emanuel Exports Pty Ltd and EMS Rural Exports Pty Ltd in accordance with the Australian Meat and Live-stock Industry Act 1997.

See more about livestock export compliance on our website.

Illegal logging

Under the Illegal Logging Prohibition Regulation 2012, importers of timber and wood products are required to comply with requirements for due diligence. We identify non-compliance through self-reporting by importers and assessments by our officers.

In 2018–19 there were 20,746 importers of regulated timber products who declared 1,109,144 lines of declared products worth almost $7.9 billion. The self-declared compliance rate was 82%, an increase of 1% from 2017–18.

Our assessments of due diligence indicate compliance rates have risen from around 10% in 2017 to 65% in 2019.

In 2018 we ended a 3-year ‘soft start’ compliance period under the Regulation. For many of the importers we assessed, the soft start period was often the first contact importers had with the illegal logging legislation. Assessments conducted since then have generally involved importers who had previously received education about the due diligence requirements. Because of the large number of one-off or smaller importers that have not received a request for assessment, the actual level of compliance may be lower than indicated.

In 2018–19 we issued the first infringement notice to an importer for failure to provide their due diligence system and information for a specific import to the department for assessment. This notice attracted a $12,600 penalty.

Water efficiency labelling

The Water Efficiency Labelling and Standards (WELS) scheme aims to reduce demand for potable water by setting standards for a range of regulated water-using appliances, fixtures and fittings. From January 2018 we increased our use of enforcement actions in response to suppliers who do not meet the WELS requirements.

In 2018–19 WELS compliance activities focused on internet-based sales. We used internal decision processes and escalation pathways to address non-compliance identified by WELS inspectors. All inspections and follow-up enforcement actions were in accordance with the WELS Compliance and Enforcement Policy.

We typically address non-compliance through direct contact to educate suppliers about the scheme. If that is unsuccessful, the cases are escalated and we send non-statutory warning letters to suppliers. If non-compliance persists, we are able to use statutory powers under the Water Efficiency Labelling and Standards Act 2005 to issue Remedial Action Notices.

Following the use of warning letters and statutory notices, the compliance rate was 94% between 1 January 2018 and 30 June 2019. The remaining cases are ongoing in 2019–20 (Table 4).

Table 4 WELS Scheme website assessments and store inspections—compliance intervention effectiveness, January to June 2018 and 2018–19

^{a The current record keeping method commenced in January 2018 and data collected prior to this is not comparable. Twelve cases from before January 2018 are incorporated in the figures above.}

^{b Some cases where compliance was achieved or additional steps were taken are cases where warning letters were sent in previous periods.}

For products sold online, we achieve compliance through a combination of direct contact with online sellers and marketplaces, or intervention activities by online marketplace providers (Table 5).

Table 5 WELS scheme online marketplaces—compliance intervention effectiveness, 2018–19

Item	2018–19
Cases opened during period	182
Cases closed because compliance was achieved	133
Cases remaining open at end of period	49

As at 30 June 2019, more than 370 entities had registered 30,905 products in WELS. Entities included manufacturers, importers and wholesalers. This compares to 28,815 products registered as at 30 June 2018 (Table 6). The increase in registered products may be attributed to effective compliance activities and to sellers having a greater awareness of the WELS scheme and its requirements.

Table 6 WELS scheme product registrations, 2018 and 2019

^{a WELS product registrations must be renewed each year to remain valid. WELS products, where the registration was not renewed, changed to ‘ceasing’ status in our product registration database on 22 January 2018. The registration for those products expired on 22 July 2018 and after that the products cannot legally be offered for sale in Australia.}

Performance criterion: Maintained or improved effectiveness and efficiency in managing biosecurity risk

Measure	The department achieves a substantial, cost-effective reduction in biosecurity risk, measured by avoided loss and return on investment
Source	Corporate Plan 2018–19, page 13
Result	Achieved

Through various investments in biosecurity, we were able to achieve a substantial reduction in biosecurity risk consistent with that achieved in previous years.

This response is based on departmental and inter-agency data sources and departmental modelling, comparing a scenario of current biosecurity controls as implemented by the Commonwealth to a hypothetical scenario of no Commonwealth biosecurity controls. This response brings together corporate and scientific knowledge. Modelling requires a number of simplifications and assumptions, and uncertainty is inherent in some model parameters.

Performance criterion: Regulatory practices seek to minimise the impact of regulation on clients and stakeholders

We consider the regulatory burden for individuals, businesses and community organisations before we amend or make new regulations. Where the regulatory impacts are deemed significant we prepare regulation impact statements (RISs) or seek independent reviews, a RIS-like process. The Office of Best Practice Regulation (OBPR) oversees this work and publishes regulation impact statements on its website.

In 2018–19 we completed RISs on:

• Export tariff rate quota regulatory streamlining
• Dairy Industry (Farmer-Processor transactions) code of conduct.

The OBPR assessed the Tariffs RIS as compliant and consistent with best practice. The OBPR assessed the Dairy Code RIS as compliant with government requirements and reflective of extensive consultation and thorough analysis.

We also commissioned 4 independent reviews:

• Review of the Australian Standards for the Export of Livestock (ASEL): sea transport
• Biosecurity Import Levy
• Murray–Darling Basin—Basin Amendment Instrument
• Water Charge Amendment Rules 2019.

We undertook extensive consultation with stakeholders and regulated entities on the impacts of the proposed changes. Even where a RIS or independent review is not required, we still seek feedback from regulated entities, stakeholders and the community on changes on policies and regulations. This informs the design and refinement of our regulations.

We also assess our regulatory performance annually. This helps improve regulatory practice and engagement with our stakeholders. See the 2017–18 regulator performance self-assessment report on our website.

We continue to strive to minimise the impact of regulation on regulated entities. Since 2014 we have reported a reduced net regulatory burden of $127 million for the portfolio.

Performance criterion: Business processes and services are improved through the better use of modern technology and improved work practices

Measure	Agreed service standards are met and stakeholders provide positive feedback
Source	Corporate Plan 2018–19, page 13
Result	Partially achieved

Client service standards

In 2018–19 we met or exceeded our targets across 20 of the 32 client service standards published on our website:

• Client contact services—1 of 3 met
• Import services—4 of 7 met
• Export services—7 of 8 met
• Live animal export services—8 of 14 met.

See details of our service standard performance at Appendix E: Client service standards.

Increased biosecurity measures for the 2018–19 brown marmorated stink bug (BMSB) season from September 2018 to May 2019 created a significantly increased workload. The client contact area saw an increase in call volumes and inspections booked from the previous year.

The standards for inspection of goods at an approved premise, treatments, and inspection of non-commercial vessels were not met in 2 locations because of the increased BMSB measures, as well as significant short-term increases in inspection activity.

The majority of import permit applications received through the Biosecurity Import Conditions (BICON) system were issued within the target. However, delays associated in processing more complex import permit applications adversely affected the overall result.

SNAPSHOT 4: Combatting brown marmorated stink bug

Information and communication technology service standards

In 2018–19 service standards relating to core ICT infrastructure and internal network availability met the agreed targets, averaging 99.99% to 100% availability. Average monthly availability metrics between December 2017 and June 2018 ranged from 99.98% to 100%.

There were 109 high-severity incidents that had the potential to affect multiple business services. These included:

• 3 Severity 1 incidents that affected multiple applications:
  • 1 incident in August 2018 affected multiple business applications and was traced back to a SAN migration error
  • 1 incident in December 2018 caused a widespread network outage; this was traced back to a Managed Services for VMWare (MSV) migration network connection
  • 1 incident in April 2019 affected multiple applications ; this was traced back to an old Oracle software fault
• 106 Severity 2 incidents:
  • 25 computer infrastructure incidents
  • 81 other incidents where the unplanned outage had a more localised effect on users, networks and individual services; this included events outside the department’s control such as power outages. The effect of these incidents ranged from reduced performance through to full system outages.

Measure	Evaluations of programs have positive findings
Source	Corporate Plan 2018–19, page 13
Result	Achieved

We administer a range of programs to raise awareness and ensure compliance across our regulatory portfolios. Evaluations and other reviews are valuable to monitor program deliverables so that we can continuously improve what we do and understand the impact of our activities.

We commissioned the Institute for Sustainable Futures (ISF) to evaluate the environmental and economic impact of the Water Efficiency Labelling and Standards (WELS) scheme. The evaluation included data analysis and stakeholder interviews.

WELS commenced in July 2006, mandating star-rated water efficiency labelling for water fixtures and appliances, as well as imposing a minimum standard for some products.

The ISF found the scheme is having a significant impact on water usage. In 2017–18 WELS and associated measures saved an estimated 122 GL of water, projected to rise to 231 GL per year in 2036. The scheme has also resulted in a general trend towards more registrations of higher star-rated products. The economic benefit, through reduced water and energy bills, has far exceeded the costs of WELS, with an estimated net benefit of more than $23 billion.

The study has identified areas where WELS could be improved. Stakeholders raised concerns about non-compliance and unapproved products coming into Australia. Since 2017–18 we have increased our use of enforcement actions in response to non-compliance with the scheme. Stakeholders also raised questions about the distribution of compliance costs between large and small suppliers, and the risk that customers from lower socio-demographic groups are not benefiting as much from WELS as other water users.

The ISF findings will inform our 5-yearly evaluation of WELS in 2020.

Function 2: Policy and programs

Performance criterion: Effective programs are developed and delivered to achieve policy objectives

Measure	Evaluations of programs have positive findings
Source	Corporate Plan 2018–19, page 14
Result	Achieved

We are responsible for developing and administering programs to implement the government’s policy decisions. Evaluations and other reviews monitor program deliverables so that we can understand the effect of our programs.

In 2019 ABARES reviewed the Assistance Grants—Access to Industry Priority Uses of Agvet Chemicals Grants program. Since 2015–16 the program has provided a total of $7.96 million for 149 grants to improve farmers’ access to chemicals for minor uses. These are uses for which chemical manufacturers do not register their products, covering small-scale use in specific industries.

ABARES reviewed 15 of these projects over a 20-year span. The report estimates the average return for industry under the program is $117 per grant dollar, and totals an average of $17 million per project over 20 years. The projects reviewed spanned cereals, horticultural crops and fodder for the dairy industry.

The large commodities generally showed higher returns. For example, canola treatment for weeds returned around $350 per dollar invested, tea tree $300 and rice $230. Bulb vegetables returned around $30 per dollar and tropical fruit $150. Emerging commodities such as jujubes had much smaller returns but improved pest control may allow these industries to grow.

All projects returned a profit on the amount invested by government, indicating strong benefits to Australia’s agricultural industry from the grants program. These are resemble returns achieved by similar programs in Canada and the United States.

SNAPSHOT 5: Collaborating with industry on chemicals for minor uses

Performance criterion: Policy advice is evidence-based, practical and timely

Measure	Positive ministerial feedback on the quality and timeliness of the department’s advice
Source	Corporate Plan 2018–19, page 14
Result	Achieved

We provided a range of advice to our ministers and the government including ministerial submissions and meeting briefings. Our submissions cover the range of policy areas for which we are responsible, including agricultural policy, farm performance, drought assistance, biosecurity, exports, trade and water resources.

We worked to provide high-quality advice within agreed timeframes, based on evidence including research by ABARES, and informed by stakeholder consultation. Our senior officers met regularly with ministers and their staff to ensure our advice and support continued to meet their requirements.

Function 3: Trade and market access

Performance criterion: Increased access to overseas markets generates more export opportunities for Australian primary producers

Measure	The number of export markets that are gained, maintained, improved or restored
Source	Corporate Plan 2018–19, page 14
Result	Achieved

We reported 40 market access achievements in 2018–19. We play a lead role in opening access to markets for Australian agricultural, fisheries and forestry exports. We negotiate technical market access with trading partners on arrangements to maintain and improve access. We also provide expert advice in negotiations to restore markets when trade is disrupted.

Working through our expanded overseas counsellor network, we achieved:

• 12 new market access gains, such as an agreement on import conditions for Australian almonds to Chile and walnuts to India
• 17 improved access arrangements, such as the approval of an irradiation pathway for persimmons
• maintained access arrangements for 5 commodities, such as simpler requirements to certify Australian pork for export to New Caledonia is free from African swine fever
• restored access to 6 markets, such as a recommencement of Australian strawberries exports to markets including the United Arab Emirates and Kuwait following suspension of trade.

Measure	New or improved markets show an increase in export volumes and values in trend terms
Source	Corporate Plan 2018–19, page 14
Result	Achieved

In 2017–18 Australia exported more than $22.5 million worth of walnuts around the world (Table 7).

Table 7 Australian walnut exports, 2014–15 to 2017–18

^{Source: Based on Australian Bureau of Statistics Catalogue 9920.0 with partial adjustments made on sugar. Several commodities are subject to confidentiality restrictions, which affects the overall trade estimate. See ABS 5372.0.55.001—International Merchandise Trade: Confidential Commodities List for more information.Australian walnut exports will be boosted as a result of Australia gaining market access to India. Shipments of Australian walnuts to India commenced in May 2019.}

This significant agricultural outcome came after walnuts were identified as a market access priority through the Horticulture Innovation Australia prioritisation process. India is a large export market for Australian almonds, but it holds significant potential for other nut commodities, such as walnuts.

Our overseas counsellor in New Delhi, Dr Nora Galway, was at the forefront of negotiations to open the new market. Working with our technical plant experts, the Department of Foreign Affairs and Trade and the walnut industry, Dr Galway facilitated discussions with the Indian Government and Indian importers.

This gain provides a key additional market for Australian walnut producers, and highlights Australia’s growing economic relationship with India, as is recommended in the India Economic Strategy.

During 2019–20 we appointed new counsellors in Belgium, Chile, India, Japan, Mexico, and the United Kingdom. From January 2019 we had 22 staff in overseas posts to help represent Australia’s trade interests overseas.

Function 4: Research and innovation

Performance criterion: Investment in rural research and development programs demonstrates positive returns

Measure	Qualitative assessment using case studies of benefits from rural research and development
Source	Corporate Plan 2018–19, page 15
Result	On track

As reported in the last annual report, in 2017–18 an independent, mid-program evaluation considered the conduct of rounds 1 to 3 of the Rural Research and Development for Profit program. Snapshots 6 and 7 are drawn from Rounds 1 (2015) and 2 (2016) respectively.

In 2018–19 we drew on outcomes from the mid-program evaluation to improve the implementation of Round 4 of the program, including:

• reviewing the design and assessment criteria of the grant guidelines to focus on sustaining collaborations (projects building on the success of previous funding) as well as establishing new collaborations
• extending the application time frame to 12 weeks
• reviewing reporting templates to build a knowledge base of success factors for collaboration, extension and adoption
• increasing the emphasis on outlining pathways for the adoption of research.

SNAPSHOT 6: Improved use of seasonal forecasting to increase farmer profitability

SNAPSHOT 7: More profit from nitrogen—enhancing the nutrient use efficiency of intensive cropping and pasture systems

Performance criterion: The efficient collection and distribution of levies to fund rural research and development

Measure	Levy collection processes cost no more than 1.2% of levies disbursed
Source	Corporate Plan 2018–19, page 15
Result	Achieved

In 2018–19 the department disbursed $529.025 million at a cost of $4.841 million, which represents 0.92% of levies disbursed. This is a 4.73% increase from 2017–18, when $523.986 million was disbursed at a cost of $4.622 million, or 0.88% of levies disbursed. This increase is mainly attributed to increased effort in agent management (levy payer and intermediary liaison) and targeted compliance activities through our operational and strategic compliance program (Figure 8).

Figure 8 Levy administration revenue and costs, 2014–15 to 2018–19

​Note: The percentage is calculated by dividing the total cost recovery charge by the total levy/charge disbursed for that financial year. It does not include Commonwealth matching payments.

Measure	Inspections of levy agent records cover at least 20% of levy revenue over a 3-year rolling average
Source	Corporate Plan 2018–19, page 15
Result	Achieved

The agents inspected under our national compliance program collectively contributed $150.510 million, which represents 28.5% of all levies and charges collected in 2018–19. We achieved a rolling 3-year average of 29.5% coverage for levies and charges collected from 2016–17 to 2018–19 (Figure 9).

Figure 9 National compliance program levy coverage, 2014–15 to 2018–19

Note: The levy coverage for the national compliance program is made up of the annual levy contributions of agents inspected from the operational compliance program and targeted compliance assessment program.

SNAPSHOT 8: 3D X-rays helping the biosecurity effort

Function 5: Enterprise-wide enabled services

Performance criterion: The department maintains a positive, professional and engaged workforce

Measure	The department’s employee engagement measures in the APS employee census are maintained or improved
Source	Corporate Plan 2018–19, page 16
Result	Achieved

The department’s 2019 Employee Engagement: Say, Stay, Strive score in the APS employee census was 72%, an increase on the previous year (Figure 10).

Figure 10 APS employee census employee engagement scores, 2017 to 2019

People strategy and culture

In 2018–19 we continued work on understanding our culture and improving employee engagement. Our executive shared their vision for the future where success will be characterised by a workforce that is accountable and aligned, collaborative and integrated and future oriented.

We spoke to employees around Australia and asked how they see these cultural attributes in their everyday work, to understand what is working well and where we could do better.

We used the feedback to develop our People Strategy 2019–2023 and released it in August 2019. The People Strategy identifies our priorities and provides clear and measurable actions to support continuous improvement of our culture and employee engagement over the next 4 years.

Learning and development

We developed innovative digital learning solutions to support a competent, diverse and agile workforce. This includes peer-to-peer bite-sized videos to support our biosecurity officers, who use digital learning kits to record and share operational biosecurity tasks. We have introduced new flexible learning options to give staff equal access to development opportunities and allow learners to take control of when and where they access their training.

We implemented improved compliance reporting capability in our learning management system Learnhub. This enables supervisors to more promptly and accurately assess mandatory learning compliance in their work areas. The introduction of automated reminder messaging from Learnhub has made it easier for staff and managers to keep up with mandatory learning requirements.

SNAPSHOT 9: Integrity culture program

Diversity and inclusion

We have made significant progress in implementing the Growing reconciliation: Reconciliation Action Plan 2017–2019 (RAP).

We established the department’s first Executive Leadership Group for Indigenous Matters (ELGIM) under the RAP focus area ‘Collective decisions’. The RAP requires divisions that work with Indigenous policy matters to meet twice a year to share data and advice. The role of the ELGIM is to ensure that our work practices, policy and program work take into account and promote positive Indigenous outcomes

We enrolled 6 indigenous staff to participate in the Milparanga Leadership program, which is part of the Australian Rural Leadership Program. The program aims to enable Aboriginal and Torres Strait Islander people to engage in powerful and different conversations.

We supported an Indigenous officer to undertake the Pat Turner Postgraduate Coursework Scholarship at the Australian National University. The scholarship aims to increase the capability of Indigenous employees in the Australian Public Service, in order to improve public sector leadership and public policy. We continue to offer opportunities for staff to work with Indigenous communities through the Jawun APS Secondment Program.

We commenced activities under our Aboriginal and Torres Strait Islander Employment Strategy 2018–2020. The strategy aims to increase recruitment of Aboriginal and Torres Strait Islander employees across all levels and to ensure career progression for employees, with a focus on middle and senior management. We will also strive to provide a culturally safe work environment that acknowledges and celebrates Aboriginal and Torres Strait Islander cultures.

Work is underway to increase Aboriginal and Torres Strait Islander staff representation from 2.5% to 4% by the end of 2020. We have engaged 5 staff through the Indigenous Apprenticeships Program and 2 through the Indigenous Australian Government Development Program. We also employed 2 Indigenous graduates in our 2019 Graduate Development Program.

During the year we introduced Indigenous language training. This has contributed to staff making an acknowledgment of country before meetings. We also commenced cultural training for staff on Torres Strait Islander and Aboriginal culture.

We developed an inclusion strategy to commence in 2019–20. The strategy outlines how the department will foster inclusion in the workplace. It identifies key actions to embed behavioural, cultural and systemic changes, focused on 3 guiding themes:

• Opportunities—Attract and recruit diverse employees and ensure all employees are provided opportunities to build their capability and contribute to the department’s objectives
• Culture—Foster an inclusive culture where employees feel they can bring their authentic self to work
• Leadership—Our leaders drive business outcomes by being open-minded, flexible, encouraging innovation and modelling inclusive behaviours.

We established the Reach program for people with Autism. The program is a new initiative that places skilled employees with Autism in roles within the department.

We coordinated several successful events including NAIDOC week, Wear it Purple Day, International Women’s Day and a Men’s Health Week mental health seminar. In March 2019 we held an inclusion workshop in Canberra, bringing together the ambassadors from our diversity networks to collaborate on delivering the department’s inclusion agenda.

The department is a member of Pride in Diversity, a national not-for-profit employee support program for LGBTIQ work inclusion. Pride in Diversity coordinates the annual Australian Workplace Equality Index, a national benchmark to gauge the overall impact of inclusion initiatives on organisational culture. In 2019 we were awarded Bronze status in the index, indicating there has been a significant improvement in our LGBTIQ inclusion outcomes.

Attendance and retention

The unscheduled absence rate for 2018–19 was 14.4 FTE days. This is an increase of 0.4 FTE days compared to 2017–18 (Figure 11)

Figure 11 Unscheduled absence rates, 2015–16 to 2018–19 a

a The unscheduled leave rate is calculated by totalling the full-time equivalent (FTE) days of sick leave, carers’ leave and miscellaneous leave (excluding unauthorised and compensation leave) used in the reporting period. This total is divided by the average FTE days for departmental employees (excluding casual employees) during the reporting period.

In 2018–19 the department’s ongoing separation rate was 9.1% (Table 8).

Table 8 Ongoing separation rates, 2015–16 to 2018–19 a

^{a The separation rate is calculated by dividing the total number of ongoing separations in the reporting period by the average headcount of ongoing employees during the reporting period, multiplied by 100.}

Performance criterion: The department maintains safe and healthy workplaces

Measure	The notifiable workplace incident rate is maintained or reduced
Source	Corporate Plan 2018–19, page 16
Result	Achieved

We report notifiable incidents to Comcare as required under the Work Health and Safety (WHS) Act 2011. A notifiable incident is defined in the Act and includes the death of a worker or serious injury or illness requiring immediate treatment as an inpatient at a hospital or treatment within 48 hours of exposure to a substance or dangerous incident prescribed by the Work Health and Safety Regulations 2011.

In 2018–19 the notifiable workplace incident rate fell significantly, continuing a downward trend (Table 9).

Table 9 Notifiable incident rate, 2016–17 to 2018–19

^{The number of notifiable incidents may include incidents relating to 'workers' under the Work Health and Safety Act 2011 who are not counted in the average employee headcount—this could result in a higher notifiable incident rate (per 1,000).}

In 2018–19 Comcare completed an initial assessment of our WHS management system and awarded the department an outstanding conformance result of 90%.

Our WHS activities during the year included holding an inaugural ‘mock trial’, facilitated by an external WHS legal specialist, to enhance our understanding of legislated due diligence obligations. We completed a project to identify risk factors and develop tailored risk mitigation strategies for hazardous manual tasks carried out by our veterinary and meat Inspector workforce.

We also allocated funding for a configurable off-the-shelf IT system. The system will be implemented in 2019–20 and will deliver an integrated solution to report and manage WHS events, risk and ongoing cases.

Table 10 Investigations, directions and notices under work health and safety legislation, 2016–17 to 2018–19

Category	2016–17 (no.)	2017–18 (no.)	2018–19 (no.)
Investigations	3	3	0
Provisional improvement notices	0	0	0
Directions or notices	0	0	1

Performance criterion: The department delivers a balanced and financially sustainable budget

Measure	The end-of-year financial position is consistent with the budget at the start of the year
Source	Corporate Plan 2018–19, page 15
Result	Achieved

The department ended the year with an operating surplus of $0.7 million before unfunded depreciation of $17.1 million.

We concluded the year with a healthy balance sheet and cash reserves. This will enable the department to continue to invest in modernising ICT systems to support our business operations.

Our average staffing level was within the cap set by the government.

Further information is provided in Financial performance.

Performance criterion: Information and communication technology meets business needs

Measure	The department’s satisfaction with the delivery of ICT services is improved
Source	Corporate Plan 2018–19, page 16
Result	Achieved

A survey of internal clients indicated that 64.5% of respondents were satisfied with ICT services. Of the respondents, 79% were satisfied with the services provided through our ICT service desk and 92% indicated they had worked with the Information Services Division to deliver ICT projects and were satisfied with the division’s engagement and delivery on those projects.

Function 6: Forecasting and strategic intelligence

Performance criterion: Fit-for-purpose economic and scientific modelling

Measure	Outcomes are consistent with forecasts and predictions, allowing for unforeseeable events
Source	Corporate Plan 2018–19, page 16
Result	Achieved

ABARES forecasting

Our research arm, ABARES, publishes quarterly agricultural forecasts in the Australian crop report and Agricultural commodities publications. These cover domestic and global production, consumption, exports and prices of agricultural commodities.

In 2019 ABARES analysed the performance of its September agricultural forecasts from 2000–01 through to 2017–18, publishing the results in an ABARES ‘Snapshot’ Insights article, Summary of ABARES agricultural forecasting. The analysis (Table 11) showed that the forecasts had an average error of:

• 11% for total winter crop production.
• 2% for total meat production.
• 10% for global indicator prices averaged across major commodities.
• 6% for the total value of agricultural exports.
• 15% for export volumes averaged across major commodities.

Table 11 ABARES price forecast error, 2000–01 to 2017–18

_{a Forecast bias is defined as the average percentage difference between ABARES September forecasts and actual observations. b Naïve forecasts use the average of observed prices between July and September as a fiscal year forecast. c Before 2010–11, a US no. 2 yellow corn, fob Gulf series was used as the coarse grains indicator price rather than a barley indicator price. As a result, barley forecast accuracy accounts for accuracy of corn prices between 2000–01 and 2010–11 and barley prices between 2011–12 and 2017–18. d Before 2010–11 a US no. 2 soybeans, fob Gulf was used as an oilseeds indicator price rather than a canola indicator price. As a result, canola forecast accuracy consists of oilseeds price forecasts between 2000–01 and 2010–11 and canola prices between 2011–12 and 2017–18. na Not available}

These results show a range of forecast accuracy that are well within global standards for a public sector forecasting agency. This is remarkable given Australia’s extreme climate variability relative to agricultural sectors in similarly industrialised countries. For example, winter crop production is highly variable, and our historical forecast error was higher in seasons with significant climatic events.

SNAPSHOT 10: ABARES Insights informing agricultural issues

Risk return modelling

We operate an extensive and complex biosecurity system comprising multiple, complementary measures and actions applied along the biosecurity continuum: pre-border; ‘at the border’; and post-border. The Risk Return Resource Allocation (RRRA) model brings together corporate and scientific knowledge to mathematically represent the structure and function of the biosecurity system.

The RRRA is a unique tool to assess and quantify relationships between biosecurity risk and our investments in biosecurity controls. The primary feature of the model is a series of probabilistic networks to represent an exhaustive range of mutually exclusive pest and disease entry pathways. The use of probabilistic networks is well established in the field of risk estimation. The majority of the modelled pathway structures have been developed in collaboration with departmental experts on biosecurity pathways to ensure they align with our real-world processes.