AFMA Budget Statements
Australian Fisheries Management Authority
Section 1: Entity overview and resources...... 172
1.1Strategic direction...... 172
1.2Entity resource statement...... 175
1.3Budget measures...... 175
Section 2: Outcomes and planned performance...... 176
2.1Outcomes and performance information...... 176
Section 3: Explanatory tables and budgeted financial statements...... 182
3.1Explanatory tables...... 182
3.2Budgeted financial statements...... 183
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AFMA Budget Statements
Australian Fisheries Management Authority
Section 1: Entity overview and resources
1.1Strategic direction
The Australian Fisheries Management Authority (AFMA) was established under the Fisheries Administration Act 1991 (FAA) to manage Australia’s Commonwealth fisheries on behalf of the Australian community using the provisions of the Fisheries Management Act 1991 (FMA).
The AFMA Commission is responsible for exercising AFMA’s domestic fisheries management functions and powers under the FAA and FMA. The Chief Executive Officer is responsible for assisting the Commission, including giving effect to its decisions and is also a Commissioner. The Chief Executive Officer is also responsible for exercising AFMA’s foreign compliance functions and powers and for AFMA’s financial and human resources management under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Public Service Act 1999.
AFMA’s legislated functions and objectives provide for the implementation of efficient and cost effective fisheries management consistent with the principles of ecologically sustainable development, including the precautionary principle, and maximising the net economic returns to the Australian community from the management of Commonwealth fisheries. AFMA is to have regard to the impact of fishing on non-target species and the long-term sustainability of the marine environment.
In support of the objectives, AFMA’s work concentrates on providing fisheries management arrangements, compliance programmes, licensing services and developing operational policies and regulations based on understanding and monitoring Australian marine living resources potentially affected by Commonwealth fisheries.
AFMA undertakes its foreign compliance functions through participation in the Australian Government’s civil maritime surveillance and response programme and outreach activities providing advice and training in neighbouring countries. AFMA’s role includes fisheries enforcement, planning, training and vessel disposal activities. The activities protect Commonwealth and state-managed fisheries from illegal foreign fishing and contribute to managing wider border security issues.
AFMA also provides fisheries management services for the Protected Zone Joint Authority (PZJA) under the Torres Strait Fisheries Act 1984 (TSFA). Decisions under this legislation are made by the PZJA which comprises of the Commonwealth as Chair and the Torres Strait Regional Authority and Queensland Government as other members. The key objectives of the TSFA are to acknowledge and protect the traditional way of life and livelihood of traditional inhabitants, including their rights in relation to traditional fishing and to protect and preserve the marine environment and Indigenous fauna and flora in and in the vicinity of the Protected Zone.
When developing and implementing fisheries management arrangements, AFMA works in partnership with the public and key stakeholders, including commercial fishing operators, Indigenous interests, the prescribed peak industry body, sectoral industry associations, recreational and charter fishing representatives, researchers, environment/conservation organisations and others with an interest in Commonwealth fisheries management. AFMA engages with stakeholder groups through management advisory committees, resource assessment groups, working groups, liaison meetings, port visits, electronic newsletters and direct mail to concession holders in Commonwealth fisheries. These partnerships are especially important as AFMA continues to engage stakeholders so they can more actively manage fisheries to ensure their ecological sustainability and to assume more responsibility for managing fisheries to ensure their sustainability. In accordance with legislation AFMA consults the public on the development of and amendments to fishery management plans, and is expanding its communications with stakeholders through contemporary digital, web and social media.
In managing Commonwealth fisheries, AFMA applies the Australian Government’s cost recovery policy through its Cost Recovery Impact Statement (CRIS). The commercial fishing industry pays for costs directly attributed to and recoverable from the fishing industry while the Government pays for foreign compliance and activities that benefit the broader community. The cost recovery framework is under review in accordance with the Government’s cost recovery guidelines and is expected to apply across all relevant industry and other users of AFMA services from 2016–17.
To fulfil its functions, AFMA commissions and places a high importance on scientific and economic research and risk assessments to inform its decision-making.
AFMA’s focus over the current and forecast period is on:
• Managing Commonwealth fisheries in-line with the Commonwealth Harvest Strategy Policy and Guidelines that facilitate sustainable and profitable fisheries;
• Preventing unacceptable impacts of Commonwealth fisheries on marine ecosystems and organisms by assessing risk and applying ecological risk assessment and ecological risk management frameworks and managing all fisheries in line with Commonwealth policy on fisheries bycatch;
• Improving the efficiency and cost effectiveness of fisheries administration by streamlining business processes, and reducing red tape and unnecessary regulatory requirements;
• Increasing opportunities for co-management1 of fisheries;
• Deterring illegal fishing in Commonwealth fisheries through targeted enforcement based on compliance risk assessments and available resources;
• Deterring and preventing illegal foreign fishing in the Australian Fishing Zone and adjoining regions by providing the fisheries focus in the Australian Government border protection arrangements, prosecuting offences, disposing of forfeited boats, gear and catches, and engaging in capacity building programmes and cooperative monitoring, control and surveillance activities with regional countries; and
• Effective engagement with the community and other stakeholders to improve communications and increase public awareness and accessibility of fishery management information.
1.Fisheries co-management is an arrangement in which responsibilities and obligations for sustainable fisheries management are negotiated, shared and potentially delegated between Government, fishers and other stakeholders where appropriate.
1.2Entity resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: Australian Fisheries Management Authority resource statement
— Budget estimates for 2015–16 as at Budget May 2015
1.Appropriation Bill (No.1) 2015–16 includes an amount of $0.470 million in 2015–16 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
2.Estimated retained revenue receipts under section 74 of the PGPA Act.
3.Estimated opening balance for Special Accounts (less ‘Special Public Money’ held in Services forOther Entities and Trust Monies Special Accounts (SOETM)). For further information on Special Accounts see Table 3.1.2.
Reader note: All figures are GST exclusive.
1.3Budget measures
AFMA does not have any 2015–16 Budget measures.
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AFMA Budget Statements
Section 2: Outcomes and planned performance
2.1Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which Government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor AFMA’s performance in achieving Government outcomes.
Outcome 1: Ecologically sustainable and economically efficient Commonwealth fisheries, through understanding and monitoring Australia’s marine living resources and regulating and monitoring commercial fishing, including domestic licensing and deterrence of illegal foreign fishing.Outcome 1 strategy
Contributions to achieving this outcome during 2015–16 will include:
• Managing Commonwealth fisheries in-line with the Commonwealth Harvest Strategy Policy and Guidelines that facilitate sustainable and profitable fisheries;
• Preventing unacceptable impacts of Commonwealth fisheries on marine ecosystems and organisms by assessing risk and applying ecological risk assessment and ecological risk management frameworks and managing all fisheries in line with Commonwealth policy on fisheries bycatch;
• Improving the efficiency and cost effectiveness of fisheries administration by streamlining business processes, and reducing red tape and unnecessary regulatory requirements;
• Increasing opportunities for co-management1 of fisheries;
• Deterring illegal fishing in Commonwealth fisheries through targeted enforcement based on compliance risk assessments and available resources;
• Deterring and preventing illegal foreign fishing in the Australian Fishing Zone and adjoining regions by providing the fisheries focus in the Australian Government border protection arrangements, prosecuting offences, disposing of forfeited boats, gear and catches, and engaging in capacity building programmes and cooperative monitoring, control and surveillance activities with regional countries; and
• Effective engagement with the community and other stakeholders to improve communications and increase public awareness and accessibility of fishery management information.
1.Fisheries co-management is an arrangement in which responsibilities and obligations for sustainable fisheries management are negotiated, shared and potentially delegated between Government, fishers and other stakeholders where appropriate.
Outcome 1 expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted expenses for Outcome 1
1.Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Retained Revenue Receipts’ under section 74 of the PGPA Act.
2.‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation expense and amortisation expense for both departmental and administered items.
Note:Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.
Contributions to Outcome 1
Programme 1.1: Australian Fisheries Management AuthorityProgramme objective
To sustainably manage Commonwealth fisheries and deter illegal fishing.
Programme expenses
- AFMA’s expenditure on domestic fisheries management is a combination of cost recovered and Government funded activities. This expenditure, including the departmental appropriation, is managed through the AFMA Special Account.
- Administered expenditure is for the caretaking and disposal of illegal foreign fishing vessels. Expenses not requiring appropriation represent the depreciation of disposal facilities (administered assets).
1.Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Retained Revenue Receipts’ under section 74 of the PGPA Act.
2.‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation expense and amortisation expense for both departmental and administered items.
Programme 1.1 DeliverablesAFMA aims to improve the long term sustainable catch of target species through:
- regularly assessing the status of target species; and
- applying Commonwealth Harvest Strategy Policy, which defines targets for pursuing precautionary and economically efficient catch levels.
- applying the Commonwealth Bycatch Policy, which seeks to reduce or minimise interactions with non-target species;
- conducting risk based compliance programmes to deter illegal fishing in AFMA managed fisheries;
- conducting ecological risk assessments and putting in place management responses for species considered at risk from fishing activity; and
- supporting the fishing industry to meet the requirements of the Environment Protection and Biodiversity Conservation Act 1999.
- increasing the number of fisheries and/or species with specific targets for maximum economic yield, where it is cost effective to do so.
- providing the fisheries focus within the Australian Government Civil Maritime Surveillance and Response Programme; and
- carrying out capacity building projects and cooperative enforcement operations to improve the sustainability of fish resources in neighbouring countries.
Continued on following page
Programme 1.1 Deliverables (continued)1.Includes only research projects that AFMA contracts with the research provider. It does not include research projects administered by other agencies in which AFMA co-invests.
2.Performance cannot be forecast reliably. Actual results will be included in the AFMA Annual Report.
3.Expressed as a proportion of forfeited vessels brought to AFMA-commissioned caretaking and disposal facilities. The actual numbers depend on the number apprehended and brought to the disposal facilities through the Civil Maritime Surveillance and Response Programme and cannot be forecast reliably.
Programme 1.1 Performance measuresThe Commonwealth Harvest Strategy Policy and associated guidelines provide a framework to maintain key commercial fishery stocks at ecologically sustainable levels and maximise net economic returns through fisheries management and applying a precautionary approach.
1.Please note that not all Commonwealth fish stocks can be managed by MEY, for example, thosemanaged under international regional bodies.
2.Where higher and lower value species are caught together, different targets for the lower value species may maximise net economic returns overall.
3.Assessment methodologies are being reviewed. This may mean projections may vary.
4.In AFMA managed fisheries, not including jointly and internationally managed fisheries.
5.Ecological Risk Assessments for Commonwealth managed fisheries and sub-fisheries have been completed covering almost 1,200 species. Species considered to be potentially at high risk are the subject of mitigation measures and further assessment. This may mean that projections of numbers of high risk species may vary from year to year.
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1Explanatory tables
3.1.1Movement of administered funds between years
AFMA does not have any movement of administered funds.
3.1.2Special accounts
Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s determination under section 78 of the PGPA Act or under separate enabling legislation (section 80 of the PGPA Act refers). Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by AFMA.
Table 3.1.1: Estimates of special account flows and balances
1.The AFMA Special Account was established under section 94B of the FAA. The FAA also includes a crediting right provision to provide an equivalent amount to AFMA for its management levies and license fees that are banked to consolidated revenue.
(D) = Departmental
(A) = Administered
3.1.3Australian Government Indigenous expenditure
AFMA has no Indigenous specific expenditure.
3.2Budgeted financial statements
3.2.1Analysis of budgeted financial statements
AFMA expects to maintain a balanced Budget position over the forward years.
AFMA collects levies via regulations under the Fishing Levy Act 1991, in accordance with the FMA, FAA, Australian Government cost recovery policy and AFMA’s CRIS.
AFMA is reviewing its CRIS in line with the Government’s cost recovery guidelines and this may result in changes to future year estimates from 2016–17.
AFMA is also reviewing its legislative provisions relating to the application of penalties, which may result in changes to future year estimates from 2016–17.
Funding for depreciation and amortisation expenses have been attributed between Government and cost recovered activities in accordance with AFMA’s CRIS.
From 2010–11 the Government introduced net cash appropriation arrangements. The cumulative effect of these arrangements will lead to AFMA’s accumulated results equity declining over the forward years as depreciation and amortisation expenses are greater than equity appropriations.
From 2013–14, AFMA changed its internal process regarding levy collections. Levy revenue no longer flows through AFMA’s Administered Special Account and now is receipted directly into the Departmental Special Account.
Administered income reflects the fines imposed by AFMA for domestic and international illegal fishing activities and the receipt of administered revenue for expenditure incurred.
Administered expenditure reflects payments to the providers of illegal foreign fishing vessel caretaking and disposal services.
3.2.2Budgeted financial statements tables
Table 3.2.1 Comprehensive income statement (showing net cost of services)
(for the period ended 30 June)
1.From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)