Australian Customs and Border Protection Service
Australian Customs and Border Protection Service
Section 1: Agency overview and resources
1.1Strategic direction statement
The Australian Customs and Border Protection Service (Customs and Border Protection) is responsible for protecting the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel, and to ensure collection of border revenue and trade statistics.
The multi-faceted quality of the agency’s role is enduring, but changes at the border mean a new operating environment is emerging. International passengers are projected to increase from around 32 million this budget year to some 38million by the final year of the forward estimates, while incoming air cargo is projected to increase by almost 45% over the same period. Complexity is increasing in supply chains and travel routes, making the task of assessing threats and risks at the border more sophisticated. The range of dangerous goods, biosecurity hazards and economic risks is also growing, as is the geographic area in which Customs and Border Protection operates, with more remote ports coming on line and ramping up operations. There is more pressure on the border, yet intervention times in which to prevent the illegal movement of people and goodsremain limited.
It is not just Customs and Border Protection that is seeking opportunities and responding to vulnerabilities in the emerging environment. Transnational criminal syndicates are increasing their sophistication, adapting to older detection technologies and methods. The community’s expectations of better facilitation and increased border protection remain high. Border economic imperatives mean that importers and exporters expectseamless border processing that meet world’s best practice. Security imperatives mean that the need to protect Australia from those attempting to breach the border will not lessen.
The agency continues to position itself by developing and refining strategies to adapt to the emerging operating environment. The agency will need to operate within a tight fiscal environment for the foreseeable future, focusing on effective resource allocation, reprioritising existing funding, and working smarter at the border. A part of the agency’s response has been the introduction of new senior management arrangements, and a realignment of functions under two organisational programs—Maritime, Corporate and Intelligence, and Border Management.
The agency’s intelligence-led, risk-based approach drives resourcing decisions. It means identifying the areas of highest risk and only intervening where there is a threat to the border. Analytical techniques and tools provide the strategic and operational intelligence for targeting. Underpinning the targeted interventions are assurance programs and campaigns to prevent, deter, detect and disrupt illicit activity.
The border is a ‘continuum’, which comprises four domains: overseas, Australia’s maritime domain, at the physical border, and within Australia. Customs and Border Protection is increasing the emphasis ahead of the physical border, by devoting more resources to offshore risk assessment and intervention and engaging in greater cooperation with international partners to reduce the effort required at the physical border.
Customs and Border Protection is the lead border agency and drives agency collaboration through the Border Management Group, which oversees the Strategic Border Management Plan. The plan defines the Australian Government’s highest priorities for the border. It is a contemporary and flexible framework to guide resource allocation and manage border risks. The plan is supported by a border outlook, which provides the border agencies with an agreed view of the likely future as grounding for capability development.
The collaborative effort does not end with the Commonwealth agencies and overseas partners. Customs and Border Protection partners with state law enforcement and regulatory agencies in policy development and operational efforts. The agency also works closely with the private sector, taking a co-design approach with the industries that share and shape our operating environment.
Further emphasis will be given to Customs and Border Protection’s work with law enforcement partners to counter serious and organised crime and to bring those involved to account. The agency’s role within these joint operations is far broader than detecting illicit goods. Customs and Border Protection brings to these operations its extensive intelligence holdings covering all international trade and passenger movements as well its broad role at the border across various physical sites and within the various channels that cross the border, including air and sea passengers and crew, air and sea cargo, international mail, and maritime and coastal surveillance.
Customs and Border Protection’s focus areas for improvement in 2012–13 will be illicit drugs and precursors, criminality at the waterfront, and firearms and weapons. The agency will improve Australia’s anti-dumping and countervailing system and more broadly sharpen the agency’s approach to economic risks. There will be a focus on knowledge and ICT systems that support the intelligence-led and risk-based approach, designed to be in step with future whole-of-government interoperability capability. The agency will maintain its ongoing vigilance on the management of border risks associated with terrorism, people-smuggling, illegal foreign fishing, tobacco smuggling and offshore installation security.
Developing Customs and Border Protection’s workforce of the future will underpin all other initiatives. A range of strategies are planned, or already underway, which will increase the capability and effectiveness of the agency’s workforce as well as strengthen its defences against corruption.
As part of the 2012–13 Budget, the Australian Government will make a significant investment to maintain Customs and Border Protection’s maritime and border processing capabilities.
The government will provide $13.470m over two years to fund a Southern Ocean
ice-capable patrol vessel as a humanitarian assistance and disaster recovery capability. The measure Maritime Humanitarian Assistance and Disaster Relief Capability—share arrangement for Southern Ocean surveillance will enable the agency to share this capability with the Department of Defence. The vessel will be transferred to Customs and Border Protection from 2016. This funding maintains Australia’s commitment to protecting the environment, including protection against illegal foreign fishing, and fulfilling its international convention obligations. It will also maintain Australia’s ability to protect its national sovereignty in the Southern Ocean.
The government will also provide funding of $19.831m (excluding capital costs) for the Australian Customs and Border ProtectionService—Long Term Ashmore Reef Capability measure to maintain existing capability around the Ashmore Reef which is vital to support the effort against both people smuggling and environmental degradation (including illegal foreign fishing) in and around the area. Capital funding will be published following the finalisation of the procurement exercise.
Finally, the government will provide capital funding of $7.900m over two years to invest in an additional 20 automated processing gates as part of a measure to deliverincreased use of SmartGate at Australia’s major international airports. With this increase in processing capacity, eligible Australian and New Zealand travellers arriving in Australia will be expected to use self-service technology as they pass through the Customs and Border Protection entry control point.
To offset the cost of these measures, Customs and Border Protection has identified efficiencies across its operations, including Australian Customs and Border ProtectionService—Increased use of SmartGate capability ($19.787m over four years), Australian Customs and Border Protection Service—redirection of capital spending ($19.500m over four years) and Illegal Foreign Fishing in Northern Waters—efficiencies ($6.000m over four years).
The government has also agreed that Customs and Border Protection will provide additional funding of $3.000m over the forward estimates to better support the Australian Commission for Law Enforcement Integrity’s oversight ofCustoms and Border Protection.
1.2Agency 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: Agency resource statement—Budget estimates for 2012–13 as at Budget May 2012
Estimate ofprior year / Actual
amounts / + / Proposed / = / Total / available
available in / at Budget / estimate / appropriation
2012–13 / 2012–13 / 2012–13 / 2011–12
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Prior year departmental
appropriation2 / 168,575 / – / 168,575 / 175,719
Departmental appropriation3 / – / 986,348 / 986,348 / 1,013,9198
s 31 relevant agency receipts4 / – / 71,750 / 71,750 / 71,335
Total / 168,575 / 1,058,098 / 1,226,673 / 1,260,973
Administered expenses
Outcome 15 / – / 916 / 916 / 894
Total / – / 916 / 916 / 894
Total ordinary annual services / A / 168,575 / 1,059,014 / 1,227,589 / 1,261,867
OTHER SERVICES5
Departmental non-operating
Equity injections / – / 64,882 / 64,882 / 56,537
Total / – / 64,882 / 64,882 / 56,537
Total other services / B / – / 64,882 / 64,882 / 56,537
Total available annual
appropriations / 168,575 / 1,123,896 / 1,292,471 / 1,318,404
SPECIAL APPROPRIATIONS
Special appropriations limited
by criteria/entitlement
Customs duty and other
repayments6 / – / 260,000 / 260,000 / 260,000
Total special appropriations / C / – / 260,000 / 260,000 / 260,000
Total appropriations excluding
special accounts / 168,575 / 1,383,896 / 1,552,471 / 1,578,404
SPECIAL ACCOUNTS
Opening balance7 / 4,313 / – / 4,313 / 4,313
Appropriation receipts / – / 4,040 / 4,040 / 4,040
Total special accounts / D / 4,313 / 4,040 / 8,353 / 8,353
Total resourcing (A+B+C+D) / 172,888 / 1,387,936 / 1,560,824 / 1,586,757
Less appropriations drawn from
annual or special appropriations
above and credited to special
accounts / – / 4,040 / 4,040 / 4,040
Total net resourcing for agency / 172,888 / 1,383,896 / 1,556,784 / 1,582,717
Notes to Table 1.1:
All figures are GST exclusive.
1. Appropriation Bill (No. 1) 2012–13.
2. Estimated adjusted balance carried forward from previous year.
3. Includes an amount of $59.766m in 2012–13 for the departmental capital budget (seeTable3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.
4. Section 31 relevant agency receipts—estimate. This includes an amount of $54.436m that is collected under a memorandum of understanding with the Australian Taxation Office for the collection of revenue by Customs and Border Protection on behalf of the Australian Taxation Office.
5. Appropriation Bill (No.2) 2012–13.
6. Financial Management and Accountability Act 1997, section 28—repayments required or permitted by law.
7. Estimated opening balance for special accounts (less ‘special public money’ held in accounts such as Other Trust Moneys accounts, Services for Other Governments and Non-Agency Bodies accounts, or Services for Other Entities and Trust Moneys accounts). For further information on special accounts, see Table 3.1.2.
8. The actual available appropriation for 2011–12 does not include $0.708m of Bill 5 funding as this Bill had not received Royal Assent at the time of publishing.
1.3Budget measures
Budget measures relating to Customs and Border Protection are detailed in Budget Paper No.2 and are summarised below.
Table 1.2: Agency 2012–13 Budget measures
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16Program / $’000 / $’000 / $’000 / $’000 / $’000
Revenue measures
Passenger movement charge—increase
Administered revenues / – / 85,000 / 140,000 / 175,000 / 210,000
Extension of the South Pacific Regional Trade and Economic Cooperation Agreement—Textile, Clothing and Footwear Scheme
Administered revenues / – / – / – / – / –
Company tax cut—do not proceed
Administered revenues / – / (2,000) / (5,000) / (6,000) / (8,000)
Total revenue measures / – / 83,000 / 135,000 / 169,000 / 202,000
Expense measures
Australian Customs and Border Protection Service—Increased use of SmartGate capability / 1.1
Departmental expenses / – / (3,306) / (5,206) / (5,420) / (5,855)
Illegal Foreign Fishing in Northern Waters—efficiencies / 1.3
Departmental expenses / – / (1,500) / (1,500) / (1,500) / (1,500)
Australian Commission for Law Enforcement Integrity—resource transfer / 1.3
Departmental expenses / – / (750) / (750) / (750) / (750)
Australian Customs and Border Protection Service—Long Term Ashmore Reef Capability / 1.4
Departmental expenses / – / 544 / 4,184 / 7,550 / 7,543
Table 1.2: Agency 2012–13 Budget measures (continued)
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16Program / $’000 / $’000 / $’000 / $’000 / $’000
Expense measures (continued)
Maritime Humanitarian Assistance and Disaster Relief Capability—share arrangement for Southern Ocean surveillance / 1.4
Departmental expenses / – / – / – / 6,447 / 6,523
Total expense measures / – / (5,012) / (3,272) / 6,327 / 5,961
Capital measures
Australian Customs and Border Protection Service—Increased use of SmartGate capability / 1.1
Departmental capital / – / 5,200 / 2,700 / – / –
Australian Customs and Border Protection Service—redirection of capital spending / 1.1,1.2,1.3,1.41.5
Departmental capital / – / (4,800) / (4,900) / (4,900) / (4,900)
Australian Customs and Border Protection Service—Long Term Ashmore Reef Capability / 1.4
Departmental capital / nfp / nfp / nfp / nfp / nfp
Maritime Humanitarian Assistance and Disaster Relief Capability—share arrangement for Southern Ocean surveillance / 1.4
Departmental capital / – / – / – / 500 / –
Total capital measures / – / 400 / (2,200) / (4,400) / (4,900)
Prepared on a Government Finance Statistics (fiscal) basis.
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 programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.
Customs and Border Protection’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of Customs and Border Protectionin achieving government outcomes.
Outcome 1: The protection of the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel and ensure collection of border revenue and trade statisticsOutcome 1 strategy
Customs and Border Protection’s key strategies towards achieving Outcome 1 are to:
•manage border risks through intelligence-led, risk-based interventions that place an increasing emphasis on working ahead of the border as part of a layered approach to border management across the border continuum
•support collaborative cross-agency activities to deter and detect the illegal movement of people across Australia’s borders, including intelligence analysis, coordinated surveillance and on-water response and engagement internationally with source and transit countries
•lead at the border through the coordination of the Australian Government’s Strategic Border Management Plan, delivering results through effective partnerships with other border agencies and ensuring border management requirements are embedded in our service and infrastructure design
•partner with other law enforcement agencies to address risks and vulnerabilitiesat the border through joint operations and sharing of intelligence
•facilitate legitimate trade and travel by co-designing our services in a way that optimises the trade and travel experience, identifying and developing new business opportunities to maximise service delivery and enhancing our business intelligence capability
•operate efficiently and effectively to achieve a sustainable four-year budget across a number of diverse operational requirements by continuing to develop risk-based priority setting to align with resource allocation, strengthening our operational capacity and developing our leaders
•maintain investment in key capital infrastructure that supports our intelligence-led, risk-based approaches as well as capability to support our operations across a diverse range of activity protecting Australia’s border
•ensure that appropriate systems are in place to enable the accurate collection of border-related revenue and trade statistics, and
•be agile, flexible and able to adapt to new and emerging threats by working collaboratively and through the accelerated development and implementation of new capabilities.
Outcome 1 expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by program.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: The protection of the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel and ensure collection of border revenue and trade statistics / 2011–12Estimated / 2012–13
actual / Estimated
expenses3 / expenses
$’000 / $’000
Program 1.1: Passenger facilitation
Departmental expenses
Departmental appropriation1 / 218,147 / 212,021
Expenses not requiring appropriation in the budget year2 / 23,697 / 19,397
Total for Program 1.1 / 241,844 / 231,418
Program 1.2: Trade facilitation
Departmental expenses
Departmental appropriation1 / 195,885 / 197,156
Expenses not requiring appropriation in the budget year2 / 31,865 / 28,014
Total for Program 1.2 / 227,750 / 225,170
Program 1.3: Border protection and enforcement
Departmental expenses
Departmental appropriation1 / 241,035 / 237,096
Expenses not requiring appropriation in the budget year2 / 31,023 / 26,237
Total for Program 1.3 / 272,058 / 263,333
Program 1.4: Civil maritime surveillance and response
Departmental expenses
Departmental appropriation1 / 292,630 / 292,176
Expenses not requiring appropriation in the budget year2 / 17,310 / 10,484
Total for Program 1.4 / 309,940 / 302,660
Program 1.5: Border-related revenue collection
Departmental expenses
Departmental appropriation1 / 59,024 / 59,883
Expenses not requiring appropriation in the budget year2 / 7,714 / 6,389
Total for Program 1.5 / 66,738 / 66,272
Program: Other administered
Administered expense
Ordinary annual services (Appropriation Bill No.1) / 894 / 916
Expenses not requiring appropriation in the budget year2 / 2,500 / 2,500
Total for Program: Other administered / 3,394 / 3,416
Outcome 1 totals by appropriation type
Administered expense
Ordinary annual services (Appropriation Bill No.1) / 894 / 916
Expenses not requiring appropriation in the budget year2 / 2,500 / 2,500
Departmental expenses
Departmental appropriation1 / 1,006,721 / 998,332
Expenses not requiring appropriation in the budget year2 / 111,609 / 90,521
Total expenses for Outcome 1 / 1,121,724 / 1,092,269
2011–12 / 2012–13
Average staffing level (number) / 5,225 / 5,035
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government and/or organisational priorities change.
1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.
2. Expenses not requiring appropriation in the budget year are made up of resources received free of charge and depreciation and amortisation expenses.
3. An approved estimated operating loss of $18.003m that is likely to be incurred in 2011–12 as the result of a downward movement in the bond rate and the consequential impact on leave provision calculations, has been attributed across Customs and Border Protection’s five programs.
Contributions to Outcome 1
Program 1.1: Passenger facilitationProgram 1.1 objective
End-to-end passenger and crew processing that supports legitimate travel and the interventions needed to prevent illegal movement of people and the goods they bring across the border.
Supports the following functions of partner agencies:
•Department of Foreign Affairs and Trade—Security of Australian passport data.
•Department of Agriculture, Fisheries and Forestry—Prohibited and restricted goods.
•Department of Infrastructure and Transport—Aviation security.
•Department of Immigration and Citizenship—Immigration function (identity—face to passport check).
•Australian Federal Police—Crimes Act—Illicit drugs, counterfeit credit cards.
•Department of Defence—Counter proliferation.
•Australian Competition and Consumer Commission—Prohibited and restricted goods.
•Attorney-General’s Department—Information of national security value, firearms and weapons, IP infringement under the Copyright Act, and other prohibited and restricted goods.
•Australian Taxation Office—Tourist Refund Scheme, GST and other revenue.
•Australian Crime Commission—Intelligence relating to prohibited goods.
•Therapeutic Goods Administration—Therapeutic drugs and substances (Pharmaceutical Benefits Scheme).
•Australian Transaction Reports and Analysis Centre (AUSTRAC)—Declarations for carrying greater than $10,000 in currency, BNI (bearer negotiable instruments).
•Department of Health and Ageing—Referral of travellers who meet certain criteria.
Program 1.1 expenses
Program 1.1 is budgeted to incur expenses of $231.418m in 2012–13, a decrease of $10.426m from 2011–12. The decrease is primarily due to the impact of the measure Australian Customs and Border Protection Service—Increased use of SmartGate capability and the net impact of other adjustments. The increase in expensesfrom 2014–15 onwards is due to the increase in the underlying passenger volumes that will be reflected through the Passenger Workload Growth Model together with the net effect of wage-cost indexation adjustments and the efficiency dividend.
2011–12 / 2013–14 / 2014–15 / 2015–16
Revised / 2012–13 / Forward / Forward / Forward
budget / Budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses
Departmental item / 218,147 / 212,021 / 211,570 / 217,038 / 218,979
Expenses not requiring appropriation in
the budget year1 / 23,697 / 19,397 / 21,421 / 21,440 / 19,720
Total program expenses / 241,8442 / 231,418 / 232,991 / 238,478 / 238,699
1. Expenses not requiring appropriation in the budget year are made up of resources received free of charge and depreciation and amortisation expenses.