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Australian Trade Commission (AUSTRADE)—Report for 2013-14
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AUSTRALIAN TRADE COMMISSION
2013-14
AUSTRADE AT A GLANCE Austrade’s role Austrade contributes to Australia’s economic prosperity by helping Australian businesses, education institutions, governments and citizens as they develop international markets, win foreign direct investment, promote international education, or seek consular and passport services in certain locations overseas. During 2013-14, Austrade gained responsibility for tourism policy, programmes and research and now also focuses on strengthening Australia’s tourism industry under the Tourism 2020 strategy.
Austrade’s outcomes
Outcome 1: Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments.
Outcome 2: The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas.
Performance reporting
Austrade’s success in achieving its outcomes is measured against the deliverables and key performance indicators set out in the 2013-14 Portfolio Budget Statements for the Foreign Affairs and Trade portfolio. Results are summarised in Part 2 of this report, starting on page 13.
Additional responsibilities
On 3 October 2013, responsibility for tourism policy, programmes and research was transferred to Austrade from the former Department of Resources, Energy and Tourism. The tourism function comprises programme 3 in the former department’s 2013-14 Portfolio Budget Statements.
In this report, Austrade has reported on the performance of the tourism programme for the whole financial year. Results are summarised in Part 2 of this report, starting on page 105.
Staffing overview
At 30 June 2014, Austrade had a total of 82 overseas offices in 48 markets, as well as 11 offices in Australia. Austrade employed 1,032 staff, 474 of whom were in Australia and 558 were based overseas.
Financial summary, 2011-12 to 2013-14
2011-12 ($m)
2012-13 ($m)
2013-14 ($m)
Departmental
Appropriations 167.2 160.0 176.8
Non-appropriation revenue 20.1 17.6 24.2
Total revenue 187.3 177.5 201.0
Total expenses 201.9 192.2 214.8
Operating surplus/(deficit) (14.6) (14.7) (13.8)
Departmental capital budget 15.3 18.5 11.0
Equity injection — — —
Administered expenses
Export Market Development Grants scheme 135.1 125.9 122.8
Asian Business Engagement Plan — — 1.8
Note: Some figures have been rounded.
C ontents i
CONTENTS
Letter of transmittal i i
Highlights from 2013-14 i ii
Outlook for 2014-15 i v
PART 01 AGENCY OVERVIEW 1
About Austrade 2
Chief Executive Officer’s report 5
Austrade’s network 8
Reporting framework 1 0
Organisational structure 1 2
PART 02 PERFORMANCE REPORTING 1 3
Outcome 1 1 4
Programme 1.1: Trade, education and investment promotion 1 4
Programme 1.2: Trade development schemes—Export Market Development Grants 85
Programme 1.3: Trade development schemes—Asian Business Engagement Plan 9 7
Outcome 2 1 01
Programme 2.1: Consular and passport services 1 01
Tourism policy, programmes and research 1 05
Programme 3: Tourism-related initiatives and management 1 05
PART 03 MANAGEMENT AND ACCOUNTABILITY 1 31 Corporate governance 1 32
Risk management 1 39
Legislative framework and external scrutiny 1 41
Management of human resources 1 42
Financial management and business assurance 1 53
Managing knowledge and information 1 56
PART 04 FINANCIAL STATEMENTS 1 59
Financial performance 1 60
Financial statements 1 62
Independent auditor’s report 1 64
Certification of financial statements 1 66
Notes to and forming part of the financial statements 1 80
PART 05 APPENDIXES 237
A Staffing overview 2 38
B Austrade and TradeStart locations in Australia and TradeStartpartners 2 43
C Austrade’s Service Charter 2 46
D Work health and safety 2 48
E Financial and staffing resources 2 50
F Ecologically sustainable development and environmentalperformance 2 53
G Advertising and market research 2 56
H List of requirements 2 62
List of figures and tables 2 67
Abbreviations and acronyms 2 70
Index 271
Auditors and acknowledgements 2 80
AUSTRALIAN TRADE COMMISSION ANNUAL REPORT 2013-14
Australian Trade Commission Annual Report 2013-14 ii
Chief Executive Officer
10 September 2014
The Hon Andrew Robb AO MP Minister for Trade and Investment Parliament House Canberra ACT 2600
Dear Minister
I am pleased to present to you the Australian Trade Commission (Austrade) Annual Report for the financial year 2013-14.
This report has been prepared in accordance with section 92 of the Australian Trade Commission Act 1985. Subsection 92(1) of the Act requires the Chief Executive Officer to, as soon as practicable after 30 June in each financial year, prepare and give to the Minister a report on the Commission’s operations during that financial year.
I certify that during the 2013-14 reporting period, Austrade complied with the required standards set out under the Commonwealth Fraud Control Guidelines. The agency assessed and modified its fraud control plan; had in place fraud prevention, detection and reporting strategies; and was adequately prepared to investigate and recover the proceeds of any identified fraudulent activities.
In presenting this annual report, I would like to acknowledge the contribution made by my colleagues in Austrade.
Yours sincerely
Bruce Gosper Chief Executive Officer
Australian Trade Commission (Austrade) Level 23, Aon Tower, 201 Kent Street, Sydney NSW 2000 GPO Box 5301, Sydney NSW 2001 Australia Telephone: 61 2 9392 2102 | Facsimile: 61 2 9392 2777 | www.austrade.gov.au
ABN 11 764 698 227
H ighlights from 2013-14 iii
Supported Australia Week in China and other overseas business missions
The Australia Week in China business mission, held in April 2014, was attended by the Prime Minister and the Minister for Trade and Investment, along with more than 700 Australian business representatives. Other missions supported by Austrade included visits to Indonesia, the Philippines, Japan, Korea, the United States and Canada. See pages 38 and 81.
Attracted productive foreign direct investment to Australia
An important new opportunity for attracting investment into Australia was the appointment of a Minister not just for trade, but also for investment. During 2013-14, Austrade organised investment roundtables in markets around the world, enabling the Minister for Trade and Investment to systematically, for the first time, meet directly with potential investors and promote Australia as an investment destination. Austrade also significantly contributed to 72 inward investments during the year. See page 59.
Positioned Australia as a provider of quality education and training
Austrade created the ‘Win your Future Unlimited’ competition—a global digital campaign— which raised the profile of Australia as a study destination for international students. There were 37,000 entries received from 172 countries. See page 57.
Given responsibility for strengthening Australia’s tourism industry
In October 2013, Austrade took on responsibility for implementing the national long-term tourism strategy, Tourism 2020, and for providing policy advice to the Government to help increase Australia’s tourism market share. See page 105.
Provided practical advice to businesses
In 2013-14, Austrade provided 15,026 services to 6,608 Australian businesses, which was a 28 per cent increase in services on the previous year. Austrade’s annual service improvement study found that 89 per cent of Austrade’s clients were satisfied with their dealings with Austrade during the last 12 months, while 73 per cent said they achieved a commercial outcome as a result of working with Austrade. See pages 26 and 27.
Provided consular and passport services
In 2013-14, Austrade processed 11,571 passport applications and performed 14,342 notarial acts. At 30 June 2014, Austrade operated consulates in 16 overseas locations. See page 101.
Administered trade development schemes
The Export Market Development Grants scheme paid a total of $113.6 million to 2,445 recipients in 2013-14. The scheme provides an incentive for businesses to enter into export and grow to become sustainable exporters. See page 85.
Ninety-five grant applications were made under the Asian Business Engagement Plan with 27 small to medium-sized Australian businesses receiving grants to develop new initiatives and strengthen commercial opportunities in Asia. See page 97.
Collaborated on new research into Australia’s international business engagement
In March 2014, Austrade, with the Export Council of Australia, the Export Finance and Insurance Corporation and the University of Sydney, produced the Australia’s International Business Survey: 2014 report. The survey provided insight into the overseas markets Australian businesses would target in the next two years, and the challenges they face. See page 20.
HIGHLIGHTS FROM 2013-14
Australian Trade Commission Annual Report 2013-14 iv
Continue to contribute to economic diplomacy
Austrade will contribute to economic diplomacy by continuing to help Australian businesses to enter new markets and take advantage of new opportunities arising from free trade agreements; by facilitating foreign direct investment into Australia; and by promoting Australia as a destination of choice for international students.
Lead the organisation of the Government’s overseas business missions
Business missions that accompany the Prime Minister and other ministers on overseas visits are a valuable part of Australia’s economic diplomacy agenda. Austrade will continue to take the lead on their organisation, driving a coordinated approach to ensure missions provide value to the Australian business community and deliver commercial outcomes.
Appoint senior investment specialists to strengthen investment expertise
With greater emphasis on attracting foreign direct investment to Australia, the Minister for Trade and Investment requested that Austrade establish a small team of senior investment specialists to boost the capacity of its investment division. The senior investment specialists, to be appointed in the first half of 2014-15, will provide strong advocacy to foreign investors in the investment priority sectors, advance projects across government, and assist in bringing proposed projects by foreign companies to fruition.
Develop a five-year action plan to strengthen Australia’s tourism industry
Austrade will work closely with other Commonwealth departments, state and territory governments and industry stakeholders to develop a 2015-20 tourism action plan. It will support the goals of the Tourism 2020 strategy to increase overnight expenditure to between $115 billion and $140 billion by 2020, and will focus on tackling the supply-side barriers that impede growth in Australia’s tourism sector.
Celebrate the 40th anniversary of the Export Market Development Grants scheme
The Export Market Development Grants scheme was established on 1 July 1974. This year will mark 40 years of operation of the scheme, which continues to provide incentives to Australian businesses and new exporters to develop export markets. Since its inception, the scheme has assisted tens of thousands of exporters, mostly small and medium-sized enterprises, to become sustainable exporters to a wide range of overseas markets.
Establish a new Consulate-General in Houston
Austrade is leading the work to establish a new Consulate-General in Houston, Texas, in 2015. Houston is recognised as the global energy capital, and Texas is the world’s 13th-largest economy by gross domestic product. Establishing a permanent Australian Government presence there will provide Australia with greater access to the two-way trade and investment opportunities of the US energy revolution.
OUTLOOK FOR 2014-15
AGENCY OVERVIEW About Austrade 2
Chief Executive Officer’s report 5
Austrade’s network 8
Reporting framework 1 0
Organisational structure 1 2
PART
01
Australian Trade Commission Annual Report 2013-14 2
The Australian Trade Commission (Austrade) is the Australian Government’s agency for promoting trade, investment and international education, and strengthening Australia’s tourism industry. Austrade provides advice to the Australian Government on its trade, investment, international education and tourism policy agenda and delivers Australian consular, passport and other government services in specific overseas locations.
Austrade’s role Austrade has a detailed knowledge of international markets and economic conditions. It has deep connections within those markets and understands Australia’s comparative advantages. Austrade’s unique value lies in its ability to combine that understanding and knowledge with its status as a government organisation to deliver opportunities and outcomes for Australian businesses and institutions.
Austrade helps Australian businesses to reduce the time, cost and risk of exporting through valued services, including through the administration of the Export Market Development Grants scheme, the TradeStart programme and the Asian Business Engagement Plan.1 Austrade works closely with state and territory governments to attract productive foreign direct investment into Australia. Austrade has responsibility for promoting Australia’s international education and training sector in overseas markets and assists Australian education providers with market information and services. Austrade also continues to manage the Building Brand Australia programme to enhance
1 T he Asian Century Business Engagement Plan was renamed the Asian Business Engagement Plan in December 2013.
awareness of contemporary Australian skills and capability, and enrich Australia’s global reputation through its nation brand.
On 3 October 2013, responsibility for tourism policy, programmes and research was transferred to Austrade from the former Department of Resources, Energy and Tourism. Austrade now works across government on strengthening Australia’s tourism industry and implementing the national long-term tourism strategy, Tourism 2020. This consolidation complements Austrade’s trade, investment and education responsibilities and helps maximise the use of public resources.
Austrade’s services for Australian businesses
Austrade aims to provide services that create value for Australia’s business, education and tourism sectors, and do it in a way that represents a good investment for the taxpayer and that meets or exceeds all appropriate standards of ethical behaviour.
Through its network of advisers, located offshore and in Australia, Austrade helps internationally ready Australian businesses by:
⺠delivering market insight and intelligence ⺠providing advice on how to do business in prospective markets
⺠providing access to networks of key decision-makers, customers and contacts in overseas markets
⺠identifying and assessing business opportunities in international markets, and helping Australian businesses capture them
⺠providing badge-of-government assistance to firms in-market and helping them with behind-the-border barriers to trade and investment.
ABOUT AUSTRADE
Part 01 / Agency overview. About Austrade 3
1
Legislation
Austrade was established by the Australian Trade Commission Act 1985. It is a prescribed agency subject to the Financial Management and Accountability Act 1997 and the Public Service Act 1999 and is part of the Foreign Affairs and Trade portfolio.
Ministerial responsibility
Austrade, through its CEO, reports to the Minister for Trade and Investment. From 1 July 2013 to 18 September 2014, the Hon Richard Marles MP was the Minister for Trade. The Hon Andrew Robb AO MP was sworn in as Minister for Trade and Investment on 18 September 2014 and held the position for the remainder of the reporting year.
Austrade’s network
At 30 June 2014, Austrade operated in 82 overseas offices in 48 markets, as well as in 11 offices in Australia. Austrade also provided consular, passport and other government services in 16 consular posts that it manages overseas. Austrade’s Australian and overseas locations are shown in Figure 1 (see page 8).
Staffing
At 30 June 2014, Austrade employed 1,032 staff, 74 per cent of whom were employed in client-focused operations in Australia and overseas.
In 2013-14, staff turnover was 13.5 per cent compared with 10.5 per cent in 2012-13. The gender balance was 45 per cent male and 55 per cent female. Further staffing information is provided in Appendix A.
Financial performance
In 2013-14, Austrade continued to maintain an effective financial management framework and achieved improvements in practices and processes. In a challenging financial environment, Austrade achieved its financial targets while integrating the tourism policy, programmes and research function, which was transferred from the Department of Resources, Energy and Tourism on 3October2013. Table 1 provides a financial summary for 2011-12 to 2014-15. For further information, see page 160.
Table 1: Financial summary, 2011-12 to 2014-15
2011-12
actuals ($m) 2012-13 actuals ($m) 2013-14
actuals ($m) 2014-15 budget ($m)
Departmental
Appropriations 167.2 160.0 176.8 182.5
Non-appropriation revenue 20.1 17.6 24.2 20.0
Total revenue 187.3 177.5 201.0 202.5
Total expenses 201.9 192.2 214.8 220.0
Operating surplus/(deficit) (14.6) (14.7) (13.8) (17.5)
Departmental capital budget 15.3 18.5 11.0 14.3
Equity injection — — — 1.5
Administered expenses
Export Market Development Grants scheme 135.1 125.9 122.8 137.9
Asian Business Engagement Plan — — 1.8 1.5
Note: Some figures have been rounded.
Australian Trade Commission Annual Report 2013-14 4
Austrade’s history in brief
1985-86 Austrade was established by the Australian Trade Commission Act 1985 to achieve a more efficient and vigorous export marketing effort for the Australian Government. Several export assistance agencies, including the Export Market Development Grants board, were consolidated into one organisation. Austrade also provided consular services in certain locations overseas. Operations commenced on 6 January 1986 and Austrade was located in the Industry portfolio.
1990 Austrade’s board commissioned McKinsey & Company to review the span of the agency’s activity and the way it was organised in Australia and overseas. As a result, Austrade was restructured to include a group of 10 executive general managers, with six of those positions each directing an overseas region.
1991 Austrade moved from the Industry portfolio to the Foreign Affairs and Trade portfolio. Its head office also moved from Canberra to Sydney.
1992-93 Austrade established its National Export Hotline—13 28 78.
1996 Austrade was again restructured with its 10 executive general managers reduced to seven.
1997-99 Eight TradeStart offices were opened, extending Austrade’s export advisory services to regional Australia. The Business Club Australia programme was also launched.
2001-02 An agreement was negotiated between federal, state and territory governments to cooperate in doubling the number of Australian companies exporting.
2006 From 1 July 2006, Austrade operated under the Financial Management and Accountability Act 1997 and its board of directors was replaced with an executive management structure. Prior to 1 July 2006, Austrade operated under the Commonwealth Authorities and Companies Act 1997.
2008 Austrade was given responsibility for the promotion and attraction of productive foreign direct investment into Australia.
2010 Austrade was given responsibility for the international promotion of Australia’s education and training sector.
2011 A comprehensive review of Austrade was endorsed by the Government, resulting in a realignment of Austrade’s network, with trade resources focused on Asian and growth and emerging markets that provide the greatest opportunities for Australian businesses. Austrade’s investment resources were focused on more mature, capital-rich markets.
2013 Austrade was given responsibility for tourism policy, programmes and research.
Part 01 / Agency overview. Chief Executive Officer’s report 5
1
Bruce Gosper, Chief Executive Officer, Austrade.
I am pleased to present this, my second annual report, as Chief Executive Officer of Austrade.
The year in review
The past year has been significant for Austrade. Since taking office, the Government has made it clear Australia is ‘open for business’, and that economic diplomacy is at the core of its international engagement. For the first time ever, we have a minister for both trade and for investment, and new senior investment specialists will join Austrade, adding to existing investment expertise and capacity. This means Austrade’s focus on providing real value to Australia’s economy through its network of 82 overseas offices in 48 markets has never been more important.
Austrade has taken on new responsibilities
During the year, Austrade contributed to a stronger economy through its core work. It has provided assistance to internationally ready firms to sustain and expand their exporting activities. Austrade has facilitated major foreign direct investment outcomes, and promoted Australian education and training internationally. In October2013, Austrade gained responsibility for tourism policy, programmes and research from the former Department of Resources, Energy and Tourism, extending its mandate to strengthening Australia’s
tourism industry, in itself one of Australia’s largest export earners. Austrade is now responsible for implementing the national long-term tourism strategy, Tourism 2020, and provides policy advice to the Government to help increase Australia’s tourism market share. Austrade has also continued to provide consular and passport services in certain locations overseas.
Helping Australian businesses succeed in international markets
While the international trading atmosphere remains challenging, there are many opportunities for Australian businesses, which Austrade works hard to cultivate. Austrade has continued to provide practical advice and information directly to Australian firms or through other organisations, including state or territory governments, business groups or industry associations. In 2013-14, Austrade delivered 15,026 services to 6,608 businesses.
Attracting foreign direct investment to Australia
In 2014, Australia entered its 23rd year of uninterrupted annual economic growth. To capitalise on this impressive track record, Austrade works with state and territory governments on agreed priorities for attracting foreign direct investment to Australia. During 2013-14, Austrade significantly contributed to 72 inward investments. Austrade also organised a number of investment roundtables internationally so the Minister for Trade and Investment could meet directly with potential investors.
CHIEF EXECUTIVE OFFICER’S REPORT
Australian Trade Commission Annual Report 2013-14 6
Promoting Australia’s credentials in international education and training
Austrade promotes Australia’s international education and training sector by positioning Australia as an international education destination and a provider of high-quality education and training services. A major achievement in 2013-14 was the Austrade-created ‘Win your Future Unlimited’ competition, focused on engaging potential students through the Future Unlimited international education brand. Education and training providers, leading corporations and the Australian Government worked together on a global digital campaign. The aim was to creatively engage potential international students who were considering an Australian education. During the seven weeks of the campaign, the competition received 37,000 entries from 172 countries.
Managing international ministerial business missions
Austrade now plays a lead role in organising the Government’s business missions, an important part of economic diplomacy. The successful Australia Week in China business mission, held in April 2014, was attended by the Prime Minister, the Minister for Trade and Investment and the Minister for Small Business, along with more than 700 Australian business representatives. Other missions Austrade worked on during the year included trips to Indonesia, the Philippines, Japan, Korea, the United States and Canada, alongside successful programmes for the Minister for Trade and Investment in the United Arab Emirates, Saudi Arabia, Singapore and Hong Kong. As a result, I established a central ministerial business missions unit within Austrade to manage an expanded business missions programme. This takes advantage of the unique blend of Austrade’s
project management skills and understanding of government and business, along with its firm-level contacts.
New research into Australia’s international business engagement
In March 2014, Austrade, in collaboration with the Export Council of Australia, the Export Finance and Insurance Corporation and the University of Sydney, produced the Australia’s International Business Survey: 2014 report. A significant piece of economic analysis, the survey found that Australia’s international business engagement extends well beyond the export of goods. Data were gathered from 1,600 respondents, the majority of whom were planning to expand into two or more new markets in the next two years.
The survey results also provide support for Austrade’s operating model and market focus, with businesses citing lack of information about local markets, cultures, languages and business practices among the toughest barriers they face. Austrade’s insights and information on market conditions and emerging market opportunities, and its advice on local culture and regulations, along with targeted, firm-specific advice and services, will continue to help businesses and institutions.
Celebrating 80 years of economic diplomacy
Earlier in the year, Austrade celebrated 80 years of the Trade Commissioner Service through an evening I hosted at Old Parliament House in Canberra. Trade commissioners with service dating back to 1957 attended the event, as well as dignitaries from current and former governments. The night went well and highlighted the pride that Australia’s trade commissioners have in this country and in the contribution they have made to its economic prosperity.
1
Part 01 / Agency overview. Chief Executive Officer’s report 7
The year ahead
The international and national economic outlook frames the environment in which Austrade operates. While the total value of global trade now exceeds the levels prior to the global financial crisis, world trade growth has remained relatively sluggish. Likewise, foreign direct investment flows have been influenced by the softer global environment. However, the data on both trade and investment flows continue to show the importance of emerging economies as economic partners for Australia, and the continued expansion of those economies offers scope for greater trade and investment growth.
In the year ahead, Austrade will continue to draw on its commercial knowledge, its international network, and its relationships and connections with international customers, investors and decision-makers, to identify valuable trade and other international business opportunities for Australian businesses and institutions. It will match international demand with Australian supply, aligning the major areas of projected global demand and growth with the areas in which Australia has a comparative advantage. It will continue to actively promote Australia as a place to invest and as a destination for tourists and international students alike. It will continue to use the tools of economic diplomacy, along with business missions, to work to increase Australia’s economic prosperity.
Austrade’s unique perspective gained from its international market presence, its economic research and analysis, its firm-level commercial knowledge, and its active partnership arrangements, will also continue to inform its policy advice to the Government on tourism and economic matters more generally in the coming year.
To streamline Austrade’s operations so that it can continue to carry out its work effectively, I have restructured reporting lines to take effect from 1July 2014. Taking into account Austrade’s tight budget situation and the observations I have made of the organisation since I became CEO, I believe the changes will lead to stronger performance.
In conclusion, as always, I acknowledge my colleagues in Austrade and the professionalism and dedication with which they perform their duties. I would like to particularly acknowledge the contribution of Peter Yuile, Executive Director, Tourism, Education and Corporate Operations Group, who retired this year after seven years at Austrade and nearly 40 years in the Australian Public Service.
I look forward to a busy, yet fulfilling year ahead as we at Austrade work together, and with our government and industry partners, to advance Australia’s international economic interests.
Bruce Gosper Chief Executive Officer
Australian Trade Commission Annual Report 2013-14 8
Figure 1: Austrade’s Australian and overseas locations at 30 June 2014
Australian Government mission managed by the Department of Foreign A*airs and Trade, and where Austrade also has an o*ce
Consulate or o*ce where Austrade manages the o*cial Australian Government presence
Austrade o*ce in Australia
Istanbul
Johannesburg
Accra
Nairobi
Rabat
Madrid
Jeddah
Riyadh
Kunming
Hong Kong Shenzhen
Vladivostok
Auckland
Suva
Port Moresby
Bandar Seri Begawan
Singapore
Jakarta
Kuala Lumpur
Bangkok
Manila
Ho Chi Minh City
Hanoi Yangon Mumbai Pune
Chennai
Colombo
Bangalore Kochi
Hyderabad
Islamabad
New Delhi
Lahore
Karachi
Chandigarh
Dhaka
Kolkata
Ahmedabad Jaipur
Seoul
Osaka Tokyo
f*ckuoka
Sapporo
Beijing Qingdao Nanjing
Wuhan
Dubai
Abu Dhabi
Tel Aviv
Milan Paris
London Frankfurt Prague
Moscow
Warsaw
Stockholm
Lima
Sao Paulo
Buenos Aires
Santiago
Bogota
Mexico City
San Francisco
Vancouver
Washington DC New York
Toronto
Chicago
Darwin
Townsville
Newcastle Sydney
Brisbane
Wollongong
Canberra
Melbourne
Perth
Hobart
Adelaide
Port Louis
Taipei
Kaohsiung
Chengdu Guangzhou
Ulaanbaatar Shenyang
Hangzhou Shanghai Kuwait
AUSTRADE’S NETWORK
Notes: A D epartment of Foreign Affairs and Trade regional consular officer is based in Dubai. For TradeStart locations, see Appendix B.
Part 01 / Agency overview. Austrade’s network 9
1
Australian Government mission managed by the Department of Foreign A*airs and Trade, and where Austrade also has an o*ce
Consulate or o*ce where Austrade manages the o*cial Australian Government presence
Austrade o*ce in Australia
Istanbul
Johannesburg
Accra
Nairobi
Rabat
Madrid
Jeddah
Riyadh
Kunming
Hong Kong Shenzhen
Vladivostok
Auckland
Suva
Port Moresby
Bandar Seri Begawan
Singapore
Jakarta
Kuala Lumpur
Bangkok
Manila
Ho Chi Minh City
Hanoi Yangon Mumbai Pune
Chennai
Colombo
Bangalore Kochi
Hyderabad
Islamabad
New Delhi
Lahore
Karachi
Chandigarh
Dhaka
Kolkata
Ahmedabad Jaipur
Seoul
Osaka Tokyo
f*ckuoka
Sapporo
Beijing Qingdao Nanjing
Wuhan
Dubai
Abu Dhabi
Tel Aviv
Milan Paris
London Frankfurt Prague
Moscow
Warsaw
Stockholm
Lima
Sao Paulo
Buenos Aires
Santiago
Bogota
Mexico City
San Francisco
Vancouver
Washington DC New York
Toronto
Chicago
Darwin
Townsville
Newcastle Sydney
Brisbane
Wollongong
Canberra
Melbourne
Perth
Hobart
Adelaide
Port Louis
Taipei
Kaohsiung
Chengdu Guangzhou
Ulaanbaatar Shenyang
Hangzhou Shanghai Kuwait
Australian Government mission managed by the Department of Foreign A*airs and Trade, and where Austrade also has an o*ce
Consulate or o*ce where Austrade manages the o*cial Australian Government presence
Austrade o*ce in Australia
Istanbul
Johannesburg
Accra
Nairobi
Rabat
Madrid
Jeddah
Riyadh
Kunming
Hong Kong Shenzhen
Vladivostok
Auckland
Suva
Port Moresby
Bandar Seri Begawan
Singapore
Jakarta
Kuala Lumpur
Bangkok
Manila
Ho Chi Minh City
Hanoi Yangon Mumbai Pune
Chennai
Colombo
Bangalore Kochi
Hyderabad
Islamabad
New Delhi
Lahore
Karachi
Chandigarh
Dhaka
Kolkata
Ahmedabad Jaipur
Seoul
Osaka Tokyo
f*ckuoka
Sapporo
Beijing Qingdao Nanjing
Wuhan
Dubai
Abu Dhabi
Tel Aviv
Milan Paris
London Frankfurt Prague
Moscow
Warsaw
Stockholm
Lima
Sao Paulo
Buenos Aires
Santiago
Bogota
Mexico City
San Francisco
Vancouver
Washington DC New York
Toronto
Chicago
Darwin
Townsville
Newcastle Sydney
Brisbane
Wollongong
Canberra
Melbourne
Perth
Hobart
Adelaide
Port Louis
Taipei
Kaohsiung
Chengdu Guangzhou
Ulaanbaatar Shenyang
Hangzhou Shanghai Kuwait
Australian Trade Commission Annual Report 2013-14 10
Austrade operates under the Australian Government’s outcomes and programmes framework. Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Government programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements.
Austrade’s 2013-14 Portfolio Budget Statements identify the outcomes and associated deliverables and key performance indicators used to assess its contribution to the Australian Government’s outcomes.
In 2013-14, Austrade had two outcomes:
⺠Outcome 1: Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments
⺠Outcome 2: The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas.
Austrade’s performance against these outcomes is assessed in Part 2 of this report.
Tourism policy, programmes and research On 3 October 2013, responsibility for tourism policy, programmes and research was transferred to Austrade from the former Department of Resources, Energy and Tourism. The tourism function comprises a discrete programme in the former department’s outcome and programmes structure—Programme 3: Tourism-related initiatives and management.
Under the rules governing changes to the machinery of government, Austrade must report for the whole financial year on the performance of the tourism programme against the deliverables and key performance indicators set out in the 2103-14 Portfolio Budget Statements of the former Department of Resources, Energy and Tourism.
The tourism programme’s achievements against its deliverables and key performance indicators are assessed in a stand-alone section in Part 2 of this report, starting on page 105.
Austrade’s outcome and programme framework for 2013-14 is shown in Figure 2.
REPORTING FRAMEWORK
Part 01 / Agency overview. Reporting framework 11
1
Figure 2: Austrade’s outcome and programme framework for 2013-14
Tourism policy, programmes and research
Outcome 1
Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments
Outcome 2 The protection and welfare of Australians abroad through timely and responsive consular
and passport services in specific locations overseas
Programme 1.1
Trade, education and investment promotion
Programme 1.2
Trade
development schemes— Export Market Development
Grants
Programme 2.1
Consular and passport services
Programme 1.3
Trade
development schemes— Asian Business Engagement
Plan
Programme 3
Tourism-related initiatives and management
Australian Trade Commission Annual Report 2013-14 12
Figure 3: Austrade’s organisational structure at 30 June 2014
Trade
Investment
Chief Executive Officer
Bruce Gosper
Chief Human Resources and Change Management Officer
Marcia Kimball
Assistant General Manager Strategy, Governance and Media
Lynne Ashpole
Chief Economist
Mark Thirlwell
Executive Director Australian Operations Group
Tim Beresford
Executive Director Tourism, Education and Corporate Operations Group
Peter Yuile
Tourism
Executive Director International Operations Group
Laurie Smith
International Issues
Established Markets
North America
Japan
Korea
New Zealand and Pacific
Turkey
Israel
Growth and Emerging Markets
South Asia
Latin America
Middle East
Africa
Russia
East Asian Growth Markets
ASEAN
China
Taiwan
Hong Kong
Mongolia
Government, Ministerial and International Education
Programmes, Consular and Business Services
Legal, Security and Procurement
Marketing, Online and Business Practice
Finance
IT Services
Note: Austrade’s management committees and subcommittees are detailed on page 137.
ORGANISATIONAL STRUCTURE
PERFORMANCE REPORTING Outcome 1 1 4
Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments
Programme 1.1: Trade, education and investment promotion 1 4
Developing international markets for Australianbusinesses 18
Promoting Australian education and training internationally 4 9
Attracting productive foreign direct investment to Australia 5 9
Promoting Australia internationally 7 0
Contributing to whole-of-government policydevelopment 76
Programme 1.2: Trade development schemes—Export Market Development Grants 8 5
Administering the Export Market Development Grantsscheme 8 6
Programme 1.3: Trade development schemes—Asian Business Engagement Plan 9 7
Administering the Asian Business Engagement Plan 9 8
Outcome 2 1 01
The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas
Programme 2.1: Consular and passport services 1 01
Austrade-managed consulates 1 03
Tourism policy, programmes and research 1 05
Programme 3: Tourism-related initiatives and management 1 05
Strengthening Australia’s tourism industry 1 19
PART
02
Australian Trade Commission Annual Report 2013-14 14
Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments.
PROGRAMME 1.1: TRADE, EDUCATION AND INVESTMENT PROMOTION
Objective Austrade will advance Australian trade, investment and international education interests by identifying and presenting international opportunities and delivering practical in-market support, advice and insights to Australian businesses and education institutions.
Deliverables and key performance indicators Tables 2 and 3 summarise the results for programme 1.1 against the deliverables and key performance indicators set out in Austrade’s 2013-14 Portfolio Budget Statements.
Table 2: Summary of results for programme 1.1 deliverables
Deliverable Achieved Section and page reference
Australia’s trade and economic interests are maximised through:
⺠delivering market-related services and advice to assist Australian firms and education institutions in international business
Developing international markets for Australian businesses—see page 18.
Promoting Australian education and training internationally —see page 49.
⺠identifying general and specific international business opportunities for Australian firms and education institutions, particularly in Asia and growth and emerging markets that offer commercial potential and align with Australian capability; where there are difficulties accessing distribution channels and commercial connections; and where the value of the badge of government is highest
Developing international markets for Australian businesses—see page 18.
Promoting Australian education and training internationally —see page 49.
⺠building linkages and networks with key decision-makers, buyers, investors and institutions and facilitating access to them in international markets
Developing international markets for Australian businesses—see page 18.
OUTCOME 1
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Deliverable Achieved Section and page reference
Australia’s trade and economic interests are maximised through:
⺠assisting Australian firms and education institutions with behind-the-border barriers to trade and investment, consistent with legal obligations, including anti-bribery and corruption laws both in Australia and overseas
Developing international markets for Australian businesses—see page 18.
Promoting Australian education and training internationally —see page 49.
⺠working with partner Commonwealth Government agencies in the agreed priority areas of major infrastructure, tourism infrastructure, innovation and clean energy, to assist in the promotion and attraction of productive foreign direct investment
Attracting productive foreign direct investment to Australia —see page 59.
Note: A new set of priorities were agreed at the inaugural Trade and Investment Ministers Meeting in February 2014. For more information, see page 60.
⺠partnering with state and territory government agencies to implement productive foreign direct investment strategies for agreed multi-state priorities of digital economy, food and agribusiness, and resources
Attracting productive foreign direct investment to Australia —see page 59.
⺠identifying potential foreign investors and presenting the business case for investing in Australia; introducing leads to states and territories and Commonwealth partners
Attracting productive foreign direct investment to Australia —see page 59.
⺠helping to increase demand for Australia’s education services, positioning Australia as a provider of high-quality services to international students, including through the Future Unlimited brand, and in order to assist in building a sustainable Australian international education sector
Promoting Australian education and training internationally —see page 49.
⺠promoting Australia through the nation brand, Australia Unlimited, in target markets to advance Australia’s image and reputation covering trade, investment and education
Promoting Australia internationally—see page 70.
⺠assessing applications for the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936, to assist the international competitiveness of Australian companies and government organisations competing to win international tenders
Developing international markets for Australian businesses—see page 31.
Australian Trade Commission Annual Report 2013-14 16
Deliverable Achieved Section and page reference
Australia’s trade and economic interests are maximised through:
⺠drawing on Austrade’s global, commercial perspective to provide advice to Government.
Contributing to whole-of-government policy development—see page 76.
Table 3: Summary of results for programme 1.1 key performance indicators
Key performance indicator Achieved Outcome and page reference
High-level satisfaction by ministers, the Australian business community and education institutions with Austrade’s services.
Conducted the annual service improvement study —see page 27.
Provided support for ministerial visits—see page 81.
Provided support for trade missions—see pages 38 and 81.
Provided ministerial speeches—see page 71.
Provided ministerial submissions and briefs —see page 80.
Provided education and training market research and intelligence—see page 54.
Provision of valued, practical, market-focused services, advice and information to Australian businesses and education institutions.
Provided services to internationally ready firms —see page 25.
Assessed applications for income tax exemption under section 23AF of the Income Tax Assessment Act 1936 —see page 31.
Provided services online—see page 70.
Provided referrals for eligible Australian businesses to professional in-market service providers—see page 26.
Identification and distribution of opportunities to Australian businesses and education institutions.
Identified and distributed trade opportunities —see page 26.
Identified and distributed education and training opportunities—see page 49.
Provided direct assistance to Australian businesses —see pages 25-27.
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Key performance indicator Achieved Outcome and page reference
Effective promotion of Australia as a destination for productive foreign direct investment; a source of competitive high-quality goods and services; and a world-class international education destination and supplier of education and training services.
Continued to use and promote Australia’s nation brand —see page 70.
Continued to use and promote the Future Unlimited education brand—see page 49.
Enhanced the Study in Australia website and Market Information Package—see page 49.
Significantly contributed to 72 inward investments to Australia in 2013-14—see page 61.
Promoted Australia through media and social media —see page 71.
Co-presented the 51st Australian Export Awards —see page 72.
Achievement of agreed inward investment objectives for priority areas in target markets, by working in conjunction with Commonwealth, state and territory government agencies.
Worked with state and territory governments to achieve results on shared priorities—see page 60.
Promoted and attracted foreign direct investment by sharing investment leads and supporting site visits and leads from Austrade’s international network—see page 60.
Provided commercial investment insights—see page 61.
Effective contribution to whole-of-government policy development using Austrade’s global, commercial perspective on export, investment and international education.
Contributed to government policy initiatives —see page 76.
Engaged with state and territory governments through Austrade’s state and territory directors’ unit —see page 76.
Administered attached agency agreements —see page 79.
Appeared before, or provided input to, parliamentary inquiries and briefings—see page 79 .
Supported Australian ministers abroad and visits to Australia by foreign government representatives —see page 81.
Australian Trade Commission Annual Report 2013-14 18
DEVELOPING INTERNATIONAL MARKETS FOR AUSTRALIANBUSINESSES While the total value of global trade now exceeds its pre-global financial crisis levels, world trade growth has remained relatively sluggish in the aftermath of the crisis. Prior to the crisis, the volume of world trade in goods and services rose at an annual rate of around 7 per cent. But in 2013, the International Monetary Fund (IMF) estimated that the volume of world trade only grew by about 3 per cent. While it is expected to strengthen over the next two years in line with improving global GDP growth, official forecasters like the IMF still think that growth in world trade volumes is only likely to run at around 4 or 5 per cent over this period. World Trade Organization trade forecasts are similarlycautious.2
Australia’s exporter community
In 2012-13, there were around 45,000 exporters in Australia, which together accounted for some $300 billion of exports of goods and services.3 This total included around 43,000 exporters of goods worth $247 billion, and around 3,000 exporters of services valued at $53 billion.4 As is the case for many of the world’s economies, a relatively small number of exporters accounted for the bulk of total exports by value.
Figures 4 and 5 provide profiles of Australian goods and services exporters by value of exports and by number of exporters.
2 I nternational Monetary Fund 2014, World Economic Outlook update, July.
3 A ustralian Bureau of Statistics 2014, Characteristics of Australian exporters, 2012-13, cat. no. 5368.0.55.006.
4 T he Australian Bureau of Statistics count excludes businesses that supply goods and services to foreign tourists and students domestically, sales of goods and services by Australian businesses to other Australian businesses for subsequent export, and exports of goods consignments with a value less than $2,000. Around 1,000 firms in the count export both goods and services.
Goods exports
Almost 90 per cent of all goods exports were exported by just 405 Australian businesses, which each had exports greater than $50 million in value. These large firms accounted for about 1 per cent of the total number of goods exporters. A large degree of export concentration is not unusual, although Australia’s ratio is well above the international average. According to one study across countries, the top 1 per cent of exporters accounts for about 53 per cent of exports on average. The degree of concentration also tends to increase in line with the level of economic development. In the case of the United States, for example, the top 1 per cent of exporters accounts for about 79 per cent of exports.5
More than 8,700 exporters, or about 20 per cent of the total, each had exports worth between $250,000 and $50 million. This group accounted for almost $27 billion of exports in 2012-13, or about 11 per cent of total goods exports by value.
Almost 34,000 exporters, or about 79 per cent of the total, each had exports worth less than $250,000. This largest group of exporters was responsible for about $1.5 billion of exports, or less than 1 per cent of total goods exports for the year.
5 C aroline Freund 2014, ‘Rethinking the national export initiative’, Policy Brief 14-7, Peterson Institute for International Economics, February.
Part 02 / Performance reporting. Outcome 1 - Programme 1.1 19
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Figure 4: Australian goods exporters, 2012-13
Value of exports
$247 billion of exports
43,045 exporters
Number of exporters
Exporters with more than $50 million of exports Exporters with between $250,000
and $50 million of exports
Exporters with less than $250,000 of exports
50
100
150
200
250
300
$ billion
Number of exporters
1.5 (1%)
405 (1%)
26.8 (11%)
218.8 (89%)
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
33,894 (79%)
8,746 (20%)
Note: Totals may not add up to 100 per cent due to rounding.
Source: Australian Bureau of Statistics 2014, Characteristics of Australian exporters, 2012-13, cat. no. 5368.0.55.006.
Services exports
Australia’s exports of services exhibit the same kind of relationship between size of exporter and contribution to total exports as its exports of goods. In 2012-13, there were 81 exporters, or about 2 per cent of the total, each with exports worth more than $50 million. This group was responsible for about 65 per cent of the total value of services exports attributed to individual exporters.6 Ninety-eight per cent of services exporters, each with exports worth less than $50million, were responsible for the remaining 35per cent of total services exports.
6 D ue to the exclusions outlined in note 4, the Australian Bureau of Statistics does not produce a breakdown by size and number for services exporters accounting for $33 billion or 63 per cent of the total.
Figure 5: Australian services exporters, 2012-13
Value of exports
$19.7 billion of exports
3,323 exporters
Number of exporters
Exporters with more than $50 million of exports Exporters with less than $50 million of exports
5
10
15
20
25
1,000
2,000
3,000
4,000
$ billion
Number of exporters
81 (2%)
6.9 (35%)
12.8 (65%)
3,242 (98%)
Note: Total services exports were $52.8 billion. For $33.1 billion (63 per cent) of exports, a breakdown by size and number of exporters is not available.
Source: Australian Bureau of Statistics 2014, Characteristics of Australian exporters, 2012-13, cat. no. 5368.0.55.006.
‘ I n 2012-13, around 45,000 Australian exporters accounted for $300 billion of goods and services exports.’
Australian Trade Commission Annual Report 2013-14 20
Research into Australia’s international business community
Austrade, along with the Export Council of Australia, the Export Finance and Insurance Corporation and the University of Sydney, has produced a major new piece of economic analysis called Australia’s International Business Survey: 2014 report. It was one of the most comprehensive investigations into Australian international business in more than a decade. The survey, released in March 2014, captured data from more than 1,600 Australian businesses operating in more than 120 international markets and in a wide range of industries.
The survey found that Australia’s international business engagement now extends well beyond the export of goods. While 67 per cent of survey respondents reported that they derived international revenue from the sale of products, less than half said this was their only source of revenue. Around 46 per cent said they gained international revenue from services, and 14 per cent said they benefited from sales of intellectual property (Figure 6).
In addition, almost four in five respondents said they were also involved in other forms of international activity, including importing and outsourcing (about 60 per cent), outward foreign direct investment or offshore production (40 per cent), participation in international supply chains (24 per cent), or some form of international research and development with an overseas partner (about 26 per cent).
Figure 6: Sources of international revenue for Australian businesses
Products
46%
Services
24%
3%
4%
5%
2% IP
13%
IP = intellectual property
Note: Two per cent of survey participants said they derived international revenues from ‘other’. Total does not add up to 100 per cent due to rounding.
Source: University of Sydney and Export Council of Australia 2014, Australia’s International Business Survey: 2014 report.
Survey respondents were relatively optimistic about their economic outlook—74 per cent said they planned to expand into two or more new markets during the next two years. A total of 81 countries were nominated as important future markets. The top five (in descending order) were China, the United States, India, the United Kingdom and Indonesia.
The report also provided information on the kinds of barriers Australian businesses face when attempting to access overseas markets (Figure 7). The survey found that information gaps in some markets were the biggest impediment. Survey participants cited lack of knowledge about local culture, business practices, language and consumers, as well as lack of information on local regulations and tariffs, as the most difficult problems to overcome. It is in these areas where Austrade provides the most value to Australianexporters.
Part 02 / Performance reporting. Outcome 1 - Programme 1.1 21
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Figure 7: Top five barriers to doing business internationally
Lack of information about local culture, business practices and language
Lack of information on local regulation
Problems in obtaining customer payment
Tari*s, quotas and import duties
Licences, permits and product standards
59%
49%
45%
34%
34%
Note: Percentage of surveyed Australian firms that ranked these barriers as important. Multiple responses were possible. Source: University of Sydney and Export Council of Australia 2014, Australia’s International Business Survey: 2014 report.
Australia’s export profile
In 2013, Australia exported a total of $318.5 billion of goods and services, comprising $263.5 billion of goods and $55.1 billion of services.7 Total exports were up about 6 per cent on the previous year, with goods exports rising by almost 6 per cent, while exports of services were up by more than 7 per cent.
Northeast Asia continued to dominate Australia’s export profile, receiving 58 per cent of Australia’s total exports. More than 30 per cent of all exports of goods and services went to China, followed by Japan (16 per cent), Korea (7 per cent), Taiwan (3per cent) and Hong Kong (1 per cent) (Figure 8).
7 T he data in this section are from Department of Foreign Affairs and Trade 2014, Australia’s trade in goods and services 2013, available at www.dfat.gov.au/publications/tgs/index.
html, accessed June 2014. Additional details are available at www.dfat.gov.au/publications/statistics.html .
Australia’s exports to the Association of Southeast Asian Nations (ASEAN) accounted for a further $34 billion, or around 11 per cent of total exports. Total Australian exports of goods and services to East Asia in 2013 were worth more than $218 billion, or just over two-thirds of all export earnings.
Exports to the European Union nations were around 7 per cent of total exports, while exports to the United States, which is Australia’s sixth-largest export market, were around 5 per cent of total exports.
Australian Trade Commission Annual Report 2013-14 22
Figure 8: Australia’s top 10 export destinations, 2013
20
40
60
80
100
120
$ billion
China
Japan
ASEAN
European Union
Korea
United States
India
New Zealand
Taiwan
Hong Kong
Source: Department of Foreign Affairs and Trade 2014, Australia’s trade in goods and services 2013.
Exports of minerals and fuels accounted for almost half of total Australian goods and services exports in 2013, and exports of food and other primary products accounted for almost 13 per cent. Exports of manufactures had a 13 per cent share of total exports, while exports of other goods, including gold, accounted for 7 per cent. Services exports made up 17 per cent of the total.
Australia’s top 10 exports in 2013 are shown in Figure 9. The top five were iron ore and concentrates (22 per cent), coal (12 per cent), education-related travel services (5 per cent), natural gas (5 per cent) and gold (4 per cent).
Figure 10 shows Australia’s composition of trade in 2012-13, breaking out the services sector in more detail. Austradesupports the international operations of many of these sectors.
Figure 9: Australia’s top 10 exports, 2013
0 10 20 30 40 50 60 70
Iron ores and concentrates
Coal
Education-related travel services
Natural gas
Gold
Personal travel (excluding education) services
Crude petroleum
Wheat
Aluminium ores and concession (including alumina)
Beef
$ billion
Source: Department of Foreign Affairs and Trade 2014, Australia’s trade in goods and services 2013.
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Figure 10: Composition of exports by sector, 2012-13
Services 18%
Other services 9%
Financial services 4%
Business travel services 8%
Transport 12%
Other business services 16%
Education-related travel 28%
Personal travel
(excluding education) 24%
Food and agriculture 13%
Minerals and fuels 49%
Other 7%
Elaborate manufactures 9%
Simple manufactures 4%
Note: Totals may not add up to 100 per cent due to rounding. Sources: Department of Foreign Affairs and Trade 2014, ‘Trade data by trade import and export classification 2012-13’, unpublished; Australian Bureau of Statistics 2013, International trade in services by country, by state and by detailed services category, financial year, 2012-13, cat. no. 5368.
Mark Thirlwell Chief Economist, Sydney Mark oversees the delivery of Austrade’s economic
analysis, which covers the broad macroeconomic trends in Australia and the international economy that shape Austrade’s operating environment. ‘The main
focus here is on trends in, and drivers of, trade and investment flows’, Mark said.
Mark and his small team provide a top-down perspective on Australian trade and investment, including the composition of the
Australian exporter community. They also conduct research on special topics that are relevant to Austrade’s mandate and provide general economic support to colleagues in Austrade, through briefings, presentations, participation in training programmes, and input into speeches and analysis.
Mark’s formal training includes economics degrees from Cambridge and Oxford Universities, and he has worked as an economist at the Bank of England, J.P. Morgan and the Export Finance and Insurance Corporation. Before joining Austrade, Mark was the director of the International Economy programme at the Lowy Institute, Australia’s leading international policy think-tank.
Australian Trade Commission Annual Report 2013-14 24
Austrade supports Australian success in aerospace global value chains Ferra Engineering specialises in the design, manufacture, assembly and testing of aerospace structures and subsystems. Through its commitment to advanced hi-tech facilities, and research and development, the Brisbane-based company has become a leading value chain partner to a large number of global aerospace original equipment manufacturers. Its customers include Airbus, Boeing, BAE Systems, GE Aviation, Goodrich, Lockheed Martin, Thales, Marvin Engineering, Northrop Grumman, Parker and Rolls Royce.
Ferra has signed a number of long-term agreements to supply components for a range of Boeing fixed-wing aircraft, both military and
commercial, as well as securing contracts to supply components for the Lockheed Martin F-35 Joint Strike Fighter jet.
Ferra derives more than 70 per cent of its business from exports. Austrade has provided assistance through overseas market briefings, support at trade events like the Singapore Air Show, and introductions to potential Polish aviation customers at the 2013 Paris Air Show. Ferra has also received support from Austrade through the Export Market Development Grants scheme.
Ferra was named Boeing Supplier of the Year in 2011 in the International Category, out of a pool of more than 13,500 suppliers, and has earned a platinum supplier status award from Northrop Grumman, a US-based aerospace and defence technology company.
Global value chains
Global value chains are now widely recognised as a defining feature of globalisation and a critical part of global trade and production. According to the United Nations Conference on Trade and Development (UNCTAD), multinational corporation-coordinated global value chains accounted for about 80 per cent of global trade in 2010.8 Hence, national economic integration is often heavily influenced by a country’s degree of participation in global value chains. Based on data assembled by the Organisation for Economic Co-operation and Development (OECD), Australia’s participation is at the low end of the spectrum for OECD members.9 According to the OECD, this reflects Australia’s distance from global markets.
8 U NCTAD 2013, World Investment Report 2013—Global value chains: Investment and trade for development.
9 O ECD 2013, Interconnected economies: Benefiting from global value chains.
Austrade is working to increase this participation through:
⺠working in partnership with the Export Finance and Insurance Corporation, the Department of Industry, peak industry associations and state and territory governments to develop global supply chain roadmaps that profile selected industry sectors
⺠establishing a programme to test global supply chain roadmaps in collaboration with partners and capable Australian exporters
⺠targeting key multinational corporations that exert an influence on global value chains and priority markets, connecting Australian services and manufacturing companies with decision-makers and key suppliers
⺠working with governments, collaborative centres of excellence, education institutes, bilateral chambers and global service providers to support international capability development of relevant industries.
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How Austrade assists exporters
Austrade contributes to Australia’s economic prosperity by helping internationally ready Australian businesses as they develop overseas markets.
Austrade focuses on Asian markets, and other growth and emerging markets that offer commercial potential and opportunities aligned with Australia’s capability. Austrade’s resources are concentrated in areas where there is a clear role for government assistance.
Austrade’s services to internationally ready firms
Austrade provides internationally ready firms with information, opportunities, advice and services. It administers the Export Market Development Grants scheme (see page 85) and the TradeStart programme (see page 31 and Appendix B).
Austrade’s suite of services helps internationally ready Australian businesses by reducing the costs, time and risks of engaging in international markets. Businesses can use Austrade’s International Readiness Indicator online tool to assess whether they are internationally ready. If they are not internationally ready, the tool gives them a good understanding of what they need to address. Austrade also refers businesses that are not yet internationally ready to alternative enterprise development programmes.
Through Austrade’s network of advisers, both offshore and in Australia, Austrade helps internationally ready Australian businesses by:
⺠delivering market insight and intelligence ⺠providing advice on how to do business in prospective markets
⺠providing access to networks of key decision-makers, customers and contacts in overseas markets
⺠identifying and assessing business opportunities in international markets, and helping Australian businesses capture them
⺠providing badge-of-government assistance in-market and helping firms with behind-the-border barriers to trade and investment.
Austrade also provides exporters with tailored services that suit their individual needs, such as:
⺠market or country research to assist with the selection of new export markets, including information on barriers and regulations, market trends and specific market insights
⺠identification of potential partners and customers, including introducing potential partners, service providers and customers for a product or service
⺠appointments during a market visit to maximise overseas business trips by setting up meetings with potential partners and customers. In some markets, Austrade can also join meetings to provide language and cultural support
⺠market promotions, including assistance to attend overseas trade shows or join trade missions to launch products or services in overseas markets
⺠targeted representation using Austrade’s status as a government organisation to facilitate strategic introductions overseas.
Australian Trade Commission Annual Report 2013-14 26
Austrade also refers internationally ready Australian businesses, and potential foreign investors, to service providers with the specialist expertise to help them navigate complex international markets or seek assistance in Australia. Professional service providers can register for Austrade’s referral database at www.austrade.gov.au.
In 2013-14, Austrade provided 15,026 services to 6,608 businesses and education institutions (compared to 11,698 services to 4,867 businesses and education institutions in 2012-13). This year, Austrade also delivered more than 500 qualified trade opportunities to Australian businesses across all industry sectors.
Austrade maximises the opportunities for Australian businesses to access international markets by working with partners to build collective international trade knowledge, enhance coordination and minimise duplication. In particular, Austrade works closely with Commonwealth, state and territory governments, industry associations, chambers of commerce and industry, and professional services firms.
Following extensive market analysis in 2013, Austrade identified eight high-level global demand and growth trade areas in which it now focuses its services:
⺠food and consumer—focusing on promoting premium processed foods, wine, meat, dairy, horticulture and seafood, and leveraging Australia’s credentials for clean, green, ethical and safe foods
⺠agribusiness—focusing on building the international success of the firms that make Australia’s own agricultural production safe, sustainable and productive, in areas of deep capability such as dairy and seafood production
⺠resources and energy—focusing on mining equipment, technology and services, including mining software and specialised technologies, mineral processing, and mining education, training and research, as well as oil and gas technologies, including engineering and technology solutions and training, research and occupational health and safety
⺠health, aged care and biotechnology—focusing on disruptive technologies and health services, including health information technology and software, medical devices, aged care and senior living, biotechnology research, clinical trials and pharmaceuticals
⺠advanced manufacturing innovation—focusing on aerospace, defence, marine and automotive components and aftermarket technologies, and helping businesses to access global value chains
⺠infrastructure—focusing on sustainable urban development, rail, road, aviation and port infrastructure, including technology, equipment, skills development and services, as well as major infrastructure finance and delivery
⺠environment, water and energy efficiency— focusing on water and waste management, environment protection and remediation solutions, energy efficiency technologies and energy management solutions
⺠advanced services—focusing on financial services, ICT, professional business advisory services, creative industries and Australia’s capability in the delivery of major sporting events.
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Achieving high standards of service
Each year, Austrade undertakes a comprehensive service improvement study to assess its service delivery and identify areas for improvement in its services to businesses.
The results for 2013-14 found that 89 per cent of Austrade’s clients were satisfied with their dealings with Austrade during the past 12 months (Figure 11). This result marks a return to satisfaction levels that the agency received prior to the implementation of reforms arising from the review of Austrade in 2011.
The survey also collected more detailed information and feedback. For example:
⺠79 per cent of clients rated Austrade’s paid services as representing good value for money
⺠79 per cent said Austrade made a positive contribution to their business
⺠73 per cent said they achieved a commercial outcome as a result of working with Austrade.
The results also demonstrate the success of a number of corporate-wide service improvement initiatives introduced after the 2012-13 survey. These initiatives sought to reinforce service standards and consistent business practice across Austrade’s global network, including:
⺠ensuring effective qualification of all new organisations that seek Austrade’s assistance
⺠responding to all enquiries within two working days, as required by Austrade’s Service Charter
⺠providing swift and satisfactory complaint resolution
⺠undertaking planned follow-up to all service delivery
⺠providing referrals to professional service providers in line with Austrade’s policy
⺠keeping accurate and up-to-date records in Austrade’s database.
Austrade’s service improvement agenda was supported by a team of 40 business practice advisers in Austrade offices in Australia and overseas.
During the year, a number of service policies and procedures were updated to help staff deliver consistent levels of service across Austrade’s dispersed network. Staff can access a range of online tools to help them provide the highest quality service when working with other organisations.
At any time, organisations engaging with Austrade can provide formal compliments and complaints to the Austrade Services Manager. Feedback is reviewed monthly and used to improve service delivery in Australia and overseas. It also helps Austrade to identify issues that are important to its stakeholders. Austrade’s Service Charter is at Appendix C.
Figure 11: Client ratings of Austrade’s service, 2010 to 2014
2010 (n=1,000)
2011
(n=1,001)
2012 (n=1,200) 2013 (n=1,302)
2014 (n=1,080)
Extremely good Very good Good Neutral Poor
20
40
60
80
100
Per cent
44
30
7
3
16
89
41
33
8
4
14
87
39
33
10
5
13
85
39
32
6
4
18
89
41
33
9
4
13
87
20
Note: Totals may not add up to 100 per cent due to rounding.
Australian Trade Commission Annual Report 2013-14 28
80th anniversary of the Trade Commissioner Service In February 2014, Austrade celebrated 80 years of the Trade Commissioner Service with a dinner at Old Parliament House in Canberra.
The Trade Commissioner Service began when the Trade Commissioners Act 1933 came into force, providing for the appointment of trade commissioners for the Commonwealth of Australia.
Since then, generations of trade commissioners have contributed to Australia’s economic diplomacy in international trade, while navigating the challenges of finding new
trade opportunities, building export successes and working in demanding environments.
Trade commissioners with service dating back to 1957 attended the event, as well as dignitaries from current and former governments.
The inaugural Beryl Wilson Austrade Scholarship for Women in International Business, named after Australia’s first female Trade Commissioner, was announced at the event and was awarded to Louise Clunies-Ross (see page 33).
L-R: Bruce Gosper, Austrade CEO; the Hon Simon Crean, Minister for Trade 2007-10; the Hon Michael Duffy, Minister for Foreign Affairs and Trade 1998 and Minister for Trade Negotiations 1987-90; the Hon Ian Sinclair AC, Minister for Special Trade Representations 1980; the Hon Mark Vaile, Minister for Trade 1999-2006; the Hon Dr Craig Emerson, Minister for Trade and Competitiveness 2010-13; the Hon Warren Truss MP, Deputy Prime Minister, Minister for Infrastructure and Regional Development and Minister for Trade 2006-07; the Hon Doug Anthony AC CH, Minister for Trade and Industry 1971-72, Minister for Overseas Trade 1975-77 and Minister for Trade and Resources 1977-83; the Hon John Kerin AM, Minister for Trade and Overseas Development 1992-93; and the Hon John Dawkins AO, Minister for Trade 1984-87; at the 80th anniversary of the Trade Commissioner Service event in Canberra, February 2014.
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Working with stakeholders
Engagement with stakeholders is an important part of the way that Austrade helps Australian businesses, complementing the direct assistance the agency provides.
Austrade’s external stakeholders include Commonwealth departments and agencies, state and territory governments, industry associations, chambers of commerce and industry and professional services firms. Austrade has a formal partnership in place with the Department of Industry for work on whole-of-government trade, investment and international education priorities.
In 2013-14, Austrade led three meetings of the Senior Officials Trade and Investment Group and three meetings of the National Investment Advisory Board. Austrade chairs and delivers the secretariat function for the board.
Austrade also collaborates on its business planning with key external stakeholders. It works closely with state and territory governments in order to complement their market and industry priorities. Working with industry associations gives Austrade access to in-depth industry knowledge, and helps these bodies to identify opportunities through Austrade’s offshore network. Austrade’s work is informed by, and builds on, research and analysis by banks and professional services firms, including legal and business advisory firms.
In 2013-14, Austrade worked with Meat & Livestock Australia, Dairy Australia and Wine Australia on improving their coordination and
collaboration in international markets and increasing the value of the Australian brand across food and wine. These organisations have agreed to look for opportunities to collaborate with Austrade on specific events in key growth markets like China to generate opportunities for Australian companies.
In March 2014, Austrade hosted a breakfast forum in Melbourne, in partnership with the Export Finance and Insurance Corporation and the Australian Industry Group, to raise awareness of the challenges and opportunities for Australian companies seeking to grow their businesses in international markets. Called ‘Competing internationally—do you need to follow your customer?’, it featured eight successful Australian manufacturing and services businesses that shared their experiences in building innovative, globally competitive businesses, including accessing global value chains.
Austrade also worked in partnership with the Export Finance and Insurance Corporation, the Export Council of Australia and the University of Sydney to deliver the Australia’s International Business Survey: 2014 report (see page 20).
In other areas, Austrade continued its work with the Australian Water Association and Water Australia on assisting businesses to access opportunities in ASEAN, China and Latin America. Austrade’s collaboration agreement with Aviation-Aerospace Australia has resulted in a map of industry capabilities that assists businesses to access global value chains in that area.
Australian Trade Commission Annual Report 2013-14 30
Austrade assists Australian provider to secure rail training opportunity Rail Skills Australasia is a not-for-profit membership-based organisation established in 2011 to represent and support vocational education and training, higher education and specialised skills development for the Australian rail industry.
The organisation initially had a domestic market focus, but international exposure came in 2012 when Austrade included it in an industry capability marketing publication that was promoted through Austrade’s overseas network. The publication demonstrated Australia’s world-class expertise in heavy-haul and freight rail.
Austrade’s office in Abu Dhabi identified an opportunity for Rail Skills Australasia and its network of education and training partners to participate in Etihad Rail’s US$15 billion, 1,200-kilometre greenfield freight railway project.
With high-level support from the Australian Ambassador to the United Arab Emirates, the Queensland Government and Austrade, a Rail Skills Australasia-led consortium (including the Centre for Excellence in Rail Training and two leading rail industry academics from the Queensland University of Technology) was
awarded an initial contract in October 2013. The contract was to design, develop and deliver two five-day training courses for 50 Etihad Rail workers in Abu Dhabi. Rail Skills Australasia is currently working with Etihad Rail on future deliveries of the same programmes, scheduled in 2014.
Austrade, through its global rail expertise network, continues to assist Rail Skills Australasia and its network of education and training partners to identify and pursue opportunities in other markets, including Saudi Arabia, Thailand and India. The work of Austrade and Rail Skills Australasia is not only showing Australian education and training providers the high global demand for their expertise and skills, but also highlighting specific international opportunities created by that demand.
Employees of Etihad Rail attend training in rail expertise provided by Rail Skills Australasia in Abu Dhabi, United Arab Emirates, December 2013. Austrade’s assistance was integral to securing this contract. Image used with permission of Paul Daly.
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TradeStart
In 2013-14, Austrade’s TradeStart network of 31 trade offices operating in metropolitan and regional Australia broadened the reach of the agency’s trade and education promotion services. The programme extends the services Austrade provides to internationally ready Australian businesses and institutions through partnerships with state, territory and local governments, business chambers and industry bodies.
The four-year TradeStart contracts ended on 30 June 2014. Austrade conducted a competitive tender process between February and June 2014 to determine the partner organisations for the 2014-18 period, with the successful organisations to be announced in the first quarter of 2014-15. TradeStart locations and partner organisations for 2013-14 are listed in Appendix B.
Section 23AF of the Income Tax Assessment Act 1936
Since 1996, Austrade has had the delegation to determine and grant approved project status under section 23AF of the Income Tax Assessment Act 1936. Section 23AF exempts individuals from Australian income tax if they work overseas on an approved project for a continuous period of at least 91 days.
The exemption typically applies to projects in countries where individuals do not pay income tax, or where income tax is not levied on foreign workers because the project is funded by an international development agency (such as the World Bank). Austrade works with the Australian Taxation Office (ATO) to implement section 23AF and exemptions are contingent on satisfying ATO information requirements.
In 2013-14, Austrade granted 114 approvals in response to 119 applications from 24 applicants.10 This compares to 149 approvals, 151 applications and 33 applicants in 2012-13, continuing a trend of decreasing applications since 2009-10. The decrease appears to be due to prolonged effects of the global economic downturn and changes in business strategy by individual applicants. However, there was a notable upturn in applications in the second half of the year.
Approved projects were located in the following regions:
⺠Middle East - 48 (42 per cent) ⺠Indo-Pacific - 38 (33 per cent) ⺠Africa - 17 (15 per cent) ⺠Central Asia - 10 (9 per cent)
⺠Americas - 1 (1 per cent).
In 2013-14, 64 approved projects (56 per cent) were commercially funded; the remaining 50 (44 per cent) were funded by international development agencies.
‘ TradeStart broadens the reach of Austrade’s trade and education promotion services.’
10 S ection 23AF applicants can submit multiple applications for approval.
Australian Trade Commission Annual Report 2013-14 32
Match Australia In 2014, Austrade launched the Match Australia—International Sports Business programme for the Asian Football Confederation Asian Cup and the Cricket World Cup, both of which Australia is hosting in 2015.
Match Australia will use these events as a platform to promote Australian capabilities across trade, investment, education and tourism. The tournaments also provide an opportunity to highlight the expertise of Australian firms that specialise in developing and managing major sporting events.
The programme is being delivered as part of the activities of a whole-of-government major events taskforce, led by the Office for Sport. The taskforce’s focus is on ensuring that the tournaments deliver a positive legacy for Australia.
In March 2014, Bruce Gosper, Austrade CEO, launched the Match Australia programme for the Asian Cup, along with the then NSW Premier, Barry O’Farrell, former Socceroo, Brett Emerton, and Frank Lowy AC, Chairman of Football Federation Australia.
Since then, Austrade has delivered a number of activities offshore to encourage high-level government and business delegations to visit Australia during the tournaments. This has included targeted networking and media outreach events in the United Arab Emirates, India, Pakistan, Sri Lanka and Jordan, with others planned in Japan, Korea, China, South Africa and England.
During the tournaments, a range of business-matching programmes will be offered to programme participants, in partnership with state and territory governments.
L-R: Brett Emerton, former Socceroo; Bruce Gosper, Austrade CEO; Frank Lowy AC, Chairman, Football Federation Australia; and Barry O’Farrell, the then NSW Premier, with the Asian Cup at the launch of Match Australia in Sydney, March 2014.
Women in Global Business
The Women in Global Business (WIGB) programme, supported by Austrade, is a joint initiative between the Commonwealth and state and territory governments. Its objective is to increase female participation in international trade and investment, and as a result deliver increased economic benefits and job creation in Australia.
Australian engagement
The second year of the joint WIGB-University of Melbourne five-year longitudinal study of Australian businesswomen engaging in international markets was launched in October 2013. This was followed in April 2014 by the delivery across Australia of skills and capability development workshops on access to capital and
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finance for women business owners. WIGB worked in association with ANZ Bank, Grant Thornton, the Export Finance and Insurance Corporation and venture capital organisations on the workshops. Feedback from the longitudinal study and the workshops indicated that the vast majority of women business owners fund international growth from personal savings. In terms of ongoing sources of capital, the majority of women business owners rely on reinvested profit, while funds from banks were the primary source of funding for only around 20 per cent of organisations. The lack of working capital is acting as a major hindrance in developing international business.
Also in October 2013, WIGB partnered with ANZ Global Wealth to deliver the Engaging with Asia Speaker Series 2013, which attracted more than 800 people from across all capital cities. Speakers from Austrade and the Chinese business community gave keynote presentations on doing business in China. Attendees reported that the speaker series provided them with the confidence to export. In November 2013, WIGB held workshops on building the public relations and marketing skills that are essential for growing business internationally.
WIGB mentoring continues to increase in popularity each year. With two intakes per year, businesswomen are matched with seasoned mentors with international business experience, who can assist them to meet the challenges they face in international markets. More than 112 participants have joined the initiative to date.
International engagement
WIGB undertakes numerous international engagement activities with businesswomen from around the world. Events in 2013-14 included the Asia-Pacific Economic Cooperation (APEC) Women and the Economy forum, held in May
2014 in Beijing, and the APEC Access to Capital forum, held in September 2013 in Bali. WIGB also provided advice to UK Trade & Investment on establishing a similar entity.
Beryl Wilson Austrade Scholarship
Louise Clunies-Ross was the inaugural winner of the Beryl Wilson Austrade Scholarship for Women in International Business. Louise, who lives in Perth, has a background in international business development in the pharmaceutical industry in China and Malaysia. She speaks Mandarin, Cantonese and Malay.
The scholarship honours Beryl Wilson, who became a pioneer of Australian women in international business when she was appointed as Australia’s first female trade commissioner in 1963.
Austrade founded the scholarship on the 50th anniversary of Ms Wilson’s appointment to encourage the participation of women in international business.
The Hon Andrew Robb AO MP, Minister for Trade and Investment, said Louise ‘will make an excellent ambassador for women in international business and honour the legacy of Ms Wilson’.
Louise was inspired to learn about the scholarship’s namesake as she hopes one day to also become a trade commissioner. ‘I have heard about the obstacles Beryl had to go through to become the first female trade commissioner’, she said. ‘It’s a great achievement and I think she set the scene for women to walk in her footsteps.’
The scholarship will help Louise complete her final year of full-time study for a Master of Business Administration at the University of Western Australia.
Australian Trade Commission Annual Report 2013-14 34
Louise is honoured to be the inaugural scholarship recipient and knows the acknowledgement will open doors to more opportunities in the international business field.
L-R: Bruce Gosper, CEO, Austrade, with Louise Clunies-Ross, inaugural recipient of the Beryl Wilson Austrade Scholarship for Women in International Business, and Marcia Kimball, Chief Human Resources and Change Management Officer, Austrade, in Canberra, February 2014.
Austrade’s international network
Austrade’s contribution to advancing Australia’s economic prosperity is grounded in the provision of market information and insights; the promotion of Australian capability; making business connections; and providing advice and service at a firm and institutional level. Austrade’s work in overseas markets spans trade, investment and the international education and training sector.
Austrade’s teams on the ground focus on advising firms on how to do business in prospective markets; providing access to networks of key decision-makers, customers and contacts in overseas markets; identifying and assessing business opportunities in international markets, and helping Australian businesses capture them; providing badge-of-government assistance to firms in-market; and helping firms with behind-the-border barriers to trade and investment.
Using its network of connections and contacts in local markets with businesses, industry associations, governments and authorities, Austrade seeks to identify and communicate significant or emerging international business opportunities that align with the areas in which Australia has a comparative advantage. These areas include agribusiness and food; services (including wealth management and education and training); advanced manufacturing; mining and gas equipment, technology and services; and knowledge-based and other innovative industries.
The work of Austrade’s international network involves extensive firm-level interaction and underpins its understanding of exporter demographics. This work complements the broader macro perspective and responsibilities of the Department of Foreign Affairs and Trade. Austrade’s network extends—and sometimes leads—the reach of the Australian Government presence in international markets. This is the case for the consulates established in Bogota, Colombia, and Ulaanbaatar, Mongolia, in the past two years.
At 30 June 2014, Austrade’s network had 82 overseas offices in 48 markets, 37 of which were in cities in which the Department of Foreign Affairs and Trade does not have an embassy, consulate or high commission. Examples of Austrade’s work and its outcomes in a number of different markets are provided on the following pages.
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Grayson Perry Trade Commissioner, New Delhi Grayson leads a team in
New Delhi whose work focuses on identifying commercial opportunities for Australian companies in South Asia. ‘We also work on engaging with other government agencies to
ensure a whole-of-government approach to trade, investment, and education development, and to advance economic diplomacy in this market’, Grayson said.
Grayson also leads the transport infrastructure team in the South Asia region, focusing
on identifying opportunities for Australian companies in the rail and road sectors. One of his achievements at Austrade has been working with the public and private sectors in India to implement a long-term road safety programme, bringing Australian commercial capability and road safety expertise to India. ‘This includes measures around policy, regulation, enforcement tools, road design, safety products and trauma care expertise in hospitals’, he said.
Grayson came to Austrade with considerable economic development experience. He assisted many Australian companies to access markets and opportunities in Asia, the United States and the Middle East when he managed the international trade and investment programme for the City of Gold Coast municipality.
China
China is Australia’s largest trading partner and export market, the largest source of foreign students and the most valuable tourism market. It is also an emerging source of foreign direct investment and Australia’s largest agricultural goods market.11
In 2013, Australia’s exports to China were valued at $102 billion, an increase of $22 billion or 28 per cent on 2012, and made up almost a third of Australia’s total goods and services exports. China accounted for almost one-quarter of Australia’s total trade in 2013. It was also Australia’s major export market for services, valued at $7 billion in 2013 (up 9 per cent on 2012).
11 A ustralian Bureau of Statistics 2014, International trade in goods and services, Australia, May 2014, cat. no. 5368.0.
The main driver was travel services, comprising education-related travel services at $4 billion and recreational travel services at $2 billion.12
Income levels in China are continuing to increase, and more workers are transitioning from rural to urban living. These trends are creating opportunities for Australian businesses as Chinese populations expect improved housing, more liveable cities, a higher protein diet, a cleaner environment, better education, the opportunity to travel, and a more sophisticated choice of financial service products. China’s demand for premium food and beverages from Australia continues to rise. At the end of 2013, China accounted for 17 per cent of Australia’s red meat
12 A ustralian Bureau of Statistics 2013, International trade in services by country, by state and by detailed services category, cat. no. 5368.0.55.004.
Australian Trade Commission Annual Report 2013-14 36
exports, at almost 257,000 tonnes.13 China has also emerged as Australia’s fastest-growing market for dairy exports. Austrade is working to ensure that Australian industry is aware of opportunities in China, and is assisting Australian companies to develop strategies to approach this challenging market.
In 2013-14, Austrade conducted pilot promotional programmes with online platforms, including Yihaodian and JD.com, which helped to increase market awareness as well as sales outcomes for Australian products. The Yihaodian promotion, held in December 2013, featured more than 400 Australian products, including established brands such as Devondale, Blackmores and Leggo’s, and brands new to China, including Beechworth Honey, Cripps Newbake and Jonesy’s Farm Milk. The success of the pilots bodes well for further promotional campaigns in 2014-15.
Opportunities for service and technology providers are expanding as the needs of businesses and consumers evolve. Australian company, RayGen Resources, has signed a $60 million investment and distribution deal to supply its cutting-edge solar power generation technology to China. The signing of a deal, with ZhuoZhou Intense Solar, was attended in April 2014 by the Hon Andrew Robb AO MP, Minister for Trade and Investment, in Shanghai as part of the Australia Week in China business mission (see page 38).
In China’s vibrant tourism sector, Argyle Hotel Group has signed management contracts with 53 properties in China, 16 of which were concluded during the past 12 months. Austrade continues to work with Argyle Hotel Group and
13 M eat & Livestock Australia 2014, ‘Australian red meat exports to China in 2013 accounted for 17% of total exports’, market news, 21 January. See www.mla.com.au/Prices-and-markets/Market-news/Australian-red-meat-exports-to-China-in-2013-accounted-for-17-of-total-exports.
other Australian architecture, design and property management companies to introduce new project opportunities across China.
China remains the largest source country of international students, both globally and in Australia. In 2013, Chinese students made up 29 per cent of Australia’s international student population.14 From July 2013 to March 2014, there was a 20.1 per cent increase in the number of Australian student visa applications lodged offshore from mainland China, with growth mostly in higher education visa subclass 573.15 The first quarter of 2014 recorded an increase of 12.8 per cent in year-to-date commencements of Chinese students compared to the same period in 2013.16
In November 2013, Austrade hosted an ‘Understanding Talent Recruitment in China’ tour in Beijing, Tianjin and Guangzhou. The tour provided the opportunity to strengthen connections between career advisers, academics and international engagement staff from 18 Australian universities, corporate representatives and local governments across China.
The investment dimension of the Australia-China relationship is growing rapidly. China has now overtaken Switzerland and Canada to become the sixth-largest foreign direct investor in Australia, with a total stock of investment of almost $21 billion. This represents a 29 per cent increase between 2012 and 2013.17
14 D epartment of Education 2014, ‘Research snapshot: International student numbers’, April.
15 D epartment of Immigration and Border Protection 2014, ‘Student visa programme quarterly report’, quarter ending at 31 March 2014.
16 D epartment of Education, International student data series (2002 onwards).
17 A ustrade 2014, ‘Australia’s inward FDI stock exceeds A$600 billion in 2013’, Austrade investor data note, 6 May.
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Austrade delivers a unique opportunity for Australian food and beverage exporters In late 2013, Austrade provided assistance to China-based Kangaroo Liaoning Business Chain Co. Ltd, which was in need of Australian food and beverage partners for a new chain of concept stores trading under the distinctive name ‘Australian Golden Kangaroo’.
The chain’s stores stock only the best premium food and beverages from Australian suppliers, including premium South Australian wines, Tasmanian honey and NSW bakery mixes. The range caters to China’s high-income-earning consumer. Six stores are now open in China’s northern city of Dalian.
Austrade worked with Australian Golden Kangaroo’s Melbourne office to carefully source the right products for its stores.
Through Austrade’s recommendations and introductions, recent product additions to the range include Red Tractor oats, Get Farmed muesli and snack bars, and Boundary Bend olive oil.
An Australian Golden Kangaroo store in Shahekou District, Dalian city, Liaoning Province, China. Austrade worked with the company to source quality Australian food and beverage suppliers for its stores. Image used with permission of Kangaroo Liaoning Business Chain Co. Ltd.
During 2013-14, Austrade supported six major investment outcomes from China, four of which were in tourism infrastructure. They included Fullshare’s acquisition of the Sheraton Mirage Port Douglas in Queensland, KCC Real Estate Development Company’s redevelopment of Willow Creek Vineyard on the Mornington Peninsula in Victoria, and Shanghai Greenland’s boutique hotel proposal in the Greenland Centre in Sydney. Austrade also supported China Merchant Group’s investment in the Port of Newcastle, and investment by the world’s largest wind turbine producer, Goldwind, in the Gullen Range Wind Farm, both in New South Wales. Austrade provided qualified investment opportunities in
its priority sectors, introduced relevant state and territory contacts, and facilitated site visits to achieve these successes. For more information on Austrade’s outcomes in foreign direct investment, see page 59.
Austrade has 85 staff and 11 offices in mainland China—in Beijing, Chengdu, Guangzhou, Shanghai, Hangzhou, Kunming, Nanjing, Qingdao, Shenyang, Shenzhen and Wuhan.
Australian Trade Commission Annual Report 2013-14 38
Peter Mackey Trade Manager, Services Peter has held a number of positions at Austrade.
Currently, he manages a team of five trade advisers who work with companies and key industry stakeholders in the services sector, including
financial services, ICT, professional business services and creative industries. He also manages Austrade’s international business programme to leverage major international sporting events as business opportunities.
Peter has also held the roles of Trade Commissioner in Hanoi (2010-12) and Singapore (2012-13). He was also the
Education Commissioner in the ASEAN markets during that period. He said one of his biggest achievements at Austrade was ‘establishing a multi-year, multi-market initiative to undertake research on the workforce development needs of the emerging markets in ASEAN, and identifying commercial opportunities for Australian education and training providers’.
Peter’s background is primarily in the education and training and ICT sectors, including various roles in the secondary, higher education and ELICOS sectors, as well as the private sector. Before joining Austrade, Peter spent nine years with an export-oriented educational software business, Planet Learning, which originated from the University of New South Wales, ultimately holding the role of general manager of the business.
Australia Week in China 2014
The inaugural Australia Week in China, held in April 2014, was one of the largest and most ambitious business missions ever undertaken by an Australian government. The Hon Andrew Robb AO MP, Minister for Trade and Investment, and the Hon Bruce Billson MP, Minister for Small Business, led a business mission of 723 representatives from more than 550 organisations. During the week, more than 100 events were held in cities across China. The programme was organised by Austrade with the support of the Department of the Prime Minister and Cabinet, Tourism Australia, the Department of Foreign Affairs and Trade and other government agencies and industry associations.
The Hon Tony Abbott MP, Prime Minister of Australia, visited China during the week, accompanied by a delegation that included the Hon Josh Frydenberg MP, Parliamentary Secretary to the Prime Minister; five state premiers and the Chief Minister of the ACT; and 36 of Australia’s most senior business and community leaders.
Australia Week in China demonstrated Australia’s strengths to 2,400 Chinese guests across 10 sectoral-based programmes, including mining and environmental equipment and technology; education and training; health and senior living; tourism; agribusiness; food, beverage and consumer goods; financial services; and the built environment.
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Events were held in Hong Kong, Guangzhou, Chengdu, Beijing and Shanghai. They included seminars, investment roundtables for major investors, site visits, formal and informal networking functions, commercial signings, product showcases, a tourism business showcase and a premium wine roadshow. Austrade facilitated introductions and business networking opportunities for Australian delegates and Chinese customers who had complementary business interests.
Australia Week in China also featured a major consumer activation campaign led by Tourism Australia, including a significant media promotion of Australia as a preferred tourist destination for China’s growing number of independent travellers.
Australia Week in China culminated in a gala lunch in Shanghai for 1,800 guests, including Yang Xiong, Mayor of Shanghai. The Government’s message, ‘Australia—open for business’, was the centrepiece of Mr Abbott’s keynote address to the attendees.
Initial outcomes from the Australia Week in China business mission included:
⺠the signing of 21 deals, estimated to generate sales of around $894 million, with the potential for more as other agreements reach fruition
⺠bilateral tertiary education cooperation ⺠several foreign direct investment deals under negotiation
⺠significant media coverage in Australia and China.
Australia Week in China was a high-impact event. It succeeded in sending a very powerful message about Australia’s commitment to deeper trade, investment, education and tourism engagement with China, as well as showcasing Australian businesses and institutions and their comparative advantage. Feedback from mission delegates and Chinese customers has been overwhelmingly positive and the Government has committed to a second Australia Week in China event in 2016.
The Hon Tony Abbott MP, Prime Minister of Australia, giving the keynote address at an Australia Week in China business mission event in Shanghai, April 2014.
‘ A ustralia Week in China was one of the largest business missions ever undertaken by an Australian government.’
Australian Trade Commission Annual Report 2013-14 40
Austrade finds Australian companies positive about China
In October 2013, Austrade conducted the second Australia-China Business Perceptions Survey, in conjunction with Australian chambers of commerce in China. More than 80 Australian companies operating in China participated. The survey found that 83 per cent of respondents had a positive outlook for 2014 and expected their operations in China to continue growing.
Three in four businesses indicated that they were likely to expand their China operations in the next five years, and two-thirds of those said they expected to expand within the next two years. Beijing and Shanghai topped the list of places where expansion was most likely to occur, followed by Guangdong and Hong Kong.
The inland western regions of Chongqing and Sichuan—where the Chinese Government has actively promoted investment and growth—were seen as more likely locations for expansion than the traditional eastern coastal provinces of Zhejiang and Jiangsu.
Key competitive advantages for Australian companies operating in China included high-quality products and services, good client relationships, and a wide range of innovative products. Four in five of the businesses surveyed said competition had increased in the last year, most strongly from local competitors and foreign-owned firms. Key obstacles to growth were a shortage of skilled staff, lack of transparency in organisational practices and an unclear regulatory environment.
Susan Corbisiero Trade Commissioner, Beijing Susan’s industry focus
in China is promoting Australian capabilities in the premium food, wine, agribusiness and consumer sectors. She works with individual Australian companies to
help them enter the Chinese market.
Susan leads a team of six in northern China— four in Beijing and two in Shenyang—who work across numerous sectors. ‘Beijing is a busy post with lots of visiting federal, state and
territory ministers and business delegations’, Susan said. ‘I also work closely with other Australian Government agencies on issues affecting the Australia-China trade relationship. This includes providing briefings to visiting Australian delegations, as well as representing the Australian Government at various events.’
She believes her background in relationship management and working across culturally and geographically diverse teams helps her to achieve results in her current role. ‘Having worked previously in China in the highly competitive automotive industry for a decade, my direct experience in production, building relationships and negotiating supply and contractual terms means I intimately understand the operational realities of the Chinese market.’
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Austrade helps to rebuild Japan’s oyster industry Three years ago, the oyster industry in Tohoku, Japan, was decimated by a tsunami. Most of the industry’s infrastructure was destroyed. In response to the disaster, the Japanese Government started initiatives to help the recovery of aquaculture infrastructure in the area.
Austrade is assisting the rebuild by introducing world-class Australian expertise and technology in the region. For a year, Austrade consulted with local farmers, fishery associations and related organisations to identify what Australia could contribute to the reconstruction. This research culminated in an Australian oyster culture technology seminar held in February 2014 in Tohoku, attended by 100 local oyster farmers and related professionals.
Austrade invited a number of Australian companies, including SEAPA Pty Ltd, to present their oyster culture technologies to a targeted audience. Seminars were also held in Tokyo and Hiroshima, attended by 220 industry participants. The two companies also visited local farms to deepen understanding of their needs and local conditions.
The visit was an excellent launch for SEAPA into the Japanese market. The company specialises in plastic aquaculture products, particularly oyster baskets that are purpose-built to simplify and increase the efficiency of subtidal and intertidal oyster farming.
Austrade raised awareness of SEAPA’s specialised capabilities with potential commercial buyers, and assisted SEAPA to secure a distribution agreement and its first sales in Japan. Garry Thompson, Managing Director of SEAPA, said the company ‘looks forward to further dealings with Austrade as we continue to develop the potential of our products into Japan’.
This Austrade initiative has benefited the Japanese oyster industry by providing more durable and efficient oyster-growing systems, and has established Australia’s strong aquaculture credentials.
Following this success, a delegation of 12 Japanese oyster farmers and industry representatives visited Tasmania in June 2014 and inspected farms and production facilities there.
L-R: Garry Thompson, SEAPA Pty Ltd; Matthew Brown, SED Shellfish Equipment; Sally Phillips, Austrade; Leon Stott, SEAPA Pty Ltd; and Takehiro Yoshimoto, Austrade, on a visit to demonstrate Australian expertise to the local oyster industry in Tohoku, Japan, February 2014.
Australian Trade Commission Annual Report 2013-14 42
The Philippines
The Philippines, a country of more than 7,000 islands with a population of about 100 million people, has been the second-fastest-growing economy in Asia (after China) for the past two years.18 The country’s well-educated and English-speaking population, significant natural resource endowments, fertile lands and proximity to major shipping lanes give it the potential for further growth.
The current Philippine Government has made fighting corruption and improving transparency its top priorities. Government spending on infrastructure and the rehabilitation and reconstruction of the areas devastated by the recent strong earthquake and typhoons continues, and private investment in offices, malls, housing and residential condominiums remains strong.
In February 2014, the Hon Andrew Robb AO MP, Minister for Trade and Investment, and the Hon Julie Bishop MP, Minister for Foreign Affairs, attended the Philippines-Australia Ministerial Meeting with their Philippine Government counterparts to discuss trade and economic issues of mutual interest. Mr Robb was accompanied by a mission of senior executives from 20 Australian companies. They represented a wide range of industries, including shipbuilding; agribusiness; mining, oil and gas; business process outsourcing; education and training; financial services; architectural design services; and engineering. In addition, both ministers also had the opportunity to address senior representatives of the Philippine private sector
18 N ational Economic Development Authority of the Philippines 2014, statement by Arsenio M Balisacan, Socioeconomic Planning Secretary, at the press conference on the fourth quarter and annual performance of the Philippine economy in 2013, 30 January 2014.
during an infrastructure breakfast forum organised by Austrade and a joint membership meeting of the Makati Business Club.
Australian architectural design firms offering specialised services have found a niche in the Philippine building and construction sector. Populous Australia, an architectural firm known for designing cultural precincts and venues around the world, was commissioned to design the 50,000-seat Philippine Arena, which will be the world’s largest indoor domed arena when it is completed in July 2014. Representatives from Populous participated in the business mission led by Mr Robb to the Philippines-Australia Ministerial Meeting and Austrade continues to work with Populous to identify other opportunities in the Philippines.
The Philippines is one of the fastest-growing markets for Australian education and training. The sector has experienced significant and uninterrupted growth during the last five years. In 2012-13, enrolments increased by around 35 per cent, with a total of 5,274 student visas granted. Vocational education and training accounts for more than 45 per cent of student enrolments and higher education accounts for 38 per cent.19 There are also around 30 active transnational education and training partnerships in fields such as business, tourism and hospitality, health, heavy industries and automotive technology. Factors contributing to this growth include an increase in promotion of Australian education and training; the large Filipino diaspora in Australia who attract relatives or friends to study here; the perception of Australian education as ‘value for money’; an increase in the number
19 D epartment of Immigration and Citizenship 2013, ‘Student visa program quarterly report’, quarter ending 30 June 2013.
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of credible and competent agents; and a higher profile due to the significant number of Australian qualifications delivered in the market.
Austrade has helped several Australian education and training providers to enter the Philippine market. In 2013-14, Austrade assisted the Chisholm Institute of TAFE to secure an agreement with Toyota’s Philippines School of Technology to provide automotive training. This
was an opportunity that Austrade provided to the vocational education sector through its Market Information Package. Chisholm was selected by Toyota following a series of one-on-one briefings conducted by Austrade’s Philippines team with interested providers by videoconference.
Austrade’s office in the Philippines, with a team of 11, also has responsibility for Guam and Micronesia.
Austrade assists Telstra in joint venture with TelkomIndonesia Australian telecommunications firm, Telstra, entered into a memorandum of understanding with Telkom Indonesia in January 2014 to create a joint venture providing network applications and services to Indonesian enterprises and multinationals operating in the market.
Indonesia is a fast-growing market. A partnership with Telkom Indonesia, the leading telecommunications company in Indonesia, gives Telstra greater access to the Indonesian market and an ability to leverage its expertise in enterprise solutions. The joint venture will deliver managed network and security services to customers as well as cloud and unified communications services.
Austrade assisted Telstra to expand its strategic networks in the Indonesian market, following participation by Telstra’s chairman in a business delegation led by the Hon Tony Abbott MP, Prime Minister of Australia. The mission involved a series of high-level discussions in Jakarta, followed by further discussions between Telstra and Indonesia’s vice president in Melbourne in October 2013.
In April 2014, Austrade facilitated participation by Telstra, alongside other key stakeholders, at a reception in Jakarta that demonstrated Australia’s telecommunications capabilities and provided valuable introductions to government and Indonesian enterprises.
Australian Trade Commission Annual Report 2013-14 44
Peru
Peru is an emerging market. It has won praise for prudent macroeconomic policy implementation and a far-reaching structural reform agenda. It has achieved strong growth with a stable exchange rate and low inflation. Peru’s economy grew by 5 per cent in 201320 and has achieved an annual average growth rate of approximately 6 per cent during the past 14 years. The International Monetary Fund expects Peru to be one of the fastest-growing economies in Latin America in 2014.21 The Peruvian Government places huge importance on the continuation of an open and supportive environment for foreign investment in Peru.
Peru has extensive mineral deposits and possesses some of the largest precious and base metal mines in the world. It is among the top five global producers of copper, gold, silver, lead, zinc and tin. Mining dominates the economy (the mining investment pipeline is projected at US$59.5 billion in the next five years) and provides 57 per cent of Peru’s annual exports.22
There are opportunities for Australian firms in mining equipment technology services, human capital, and energy, water and infrastructure. In September 2013, Austrade managed the Australian presence at Peru’s major biennial mining exhibition, Extemin. Twenty-seven Australian companies, including two education institutions, attended. Two ‘new to market’ mining services companies, Wearx and Waterex, have since established offices in Lima for their Latin American operations.
20 In ternational Monetary Fund 2014, World Economic Outlook: Recovery strengthens, remains uneven, April.
21 In ternational Monetary Fund 2014, World Economic Outlook: Recovery strengthens, remains uneven, April.
22 B usiness Monitor International 2014, Peru oil and gas report, Q2 2014.
Daniel Havas Trade Commissioner, Peru Based in Lima, Daniel works closely with the
Australian Ambassador to Peru and other partners to promote Australian capabilities in sectors such as mining and resources,
education, oil and gas, and water. Daniel said customer development and building business networks in Peru are two of his key roles. ‘The badge of government is highly regarded in the Peruvian market and Austrade assists Australian companies to navigate through government channels and to deal with the challenges they face during their market entry and investment lifecycle.’
Daniel came to Austrade with considerable international business expertise, including market entry strategy, customer and opportunity development, and investment (inward to Australia as well as outward to developing markets). ‘I headed the inward investment arm of Brisbane Marketing for five years, attracting productive foreign investment from key markets, including Europe, North Asia, Canada and the United States, along with leading the agency’s corporate partnership programmes’, he said.
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In April 2014, as part of a strategy to assist mining equipment, technology and services companies to expand their presence across Latin America, Austrade facilitated a visit to Lima by 18 Australian companies already operating in Chile. Comprehensive visit programmes were developed so the companies could meet major Peruvian and international organisations and explore opportunities in Peru.
Peru’s government is focused on economic diversification and developing the country’s potential in its hydrocarbon and energy sectors. Austrade is exploring significant opportunities in oil and gas through policy advocacy and research and is providing support to Australian companies like Karoon Gas and Woodside that are already active in the sector.
Austrade has a team of seven in Lima. The team also assists Australian companies in Ecuador and Bolivia.
Austrade puts Australian mining expertise on show in Africa Mining Indaba is Africa’s most important mining conference and one of the largest mining events of its type in the world. Austrade’s 2014 Australia Lounge trade stand, in its ninth year at Mining Indaba, facilitated the participation of an Australian delegation of 63 organisations, representing miners; mining equipment, technology and services companies; education providers; and professional services firms.
JKTech, an Australian company that participated in the event, delivers products and services in ore characterisation and process improvement, including geology, mining, mineral processing and sustainability solutions. The company already had an office in Johannesburg, and was invited by Austrade to participate in the Australia Lounge to access the associated professional networking events, get advice from Austrade’s trade commissioners and business development managers, and leverage the Australian national brand by being part of the delegation.
The Australia Lounge also provided JKTech with a space to hold client meetings and discussions. The company used the space to host a Green Line Mining forum, featuring discussion of best practice, which was well received by a diverse range of industry and government attendees.
Lee Ewing, Africa Branch Manager at JKTech, said, ‘Austrade played an integral part in providing a networking platform where JKTech could establish new contacts, which have led to further discussions regarding our products and services, and the opportunity to build relationships. The meetings and events were informative and gave insight into the growth of the mining sector, not just in South Africa but also across continental Africa.’
The Australia Lounge, operated by Austrade, at the 2014 Mining Indaba conference in Cape Town, South Africa, in February 2014.
Australian Trade Commission Annual Report 2013-14 46
George Nkonsah Business Development Manager, Accra George is part of a
team of four based in Austrade’s office in Accra, Ghana. His main role is to support Australian companies that visit West Africa,
where Austrade’s focus is on identifying opportunities for Australian firms in the mining and international education sectors. George’s work includes coordinating visit programmes, providing market research and information, and engaging with other government agencies to deliver trade, investment and education outcomes for Australia.
Before joining Austrade, George gained extensive marketing and business development experience in a variety of supply chain roles for two large, fast-moving consumer goods companies, Nestle and Beiersdorf. ‘I have a deep understanding of end-to-end supply chains, marketing and sales, which is very helpful to Australian companies that are interested in this market’, George said.
George said the detailed understanding of West Africa he has gained from working in various countries gives him an in-depth understanding of opportunities in the region. ‘My technical knowledge in product management and sales ensures that I appreciate business needs. My readily available business networks in the region allow me to easily connect our clients with the right people’, he said.
Gulf Cooperation Council markets
The Middle East and North Africa region has a population of approximately 355 million23 and is an $8 billion market24 for Australia’s merchandise exports, dominated by agricultural commodities, manufactures and services. Australia’s merchandise exports to the Gulf Cooperation Council (GCC) countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, have steadily risen since 2009-10.25 The United Arab Emirates is now Australia’s largest trading partner in the
23 W orld Bank 2014, Middle East and North Africa overview, March.
24 D epartment of Foreign Affairs and Trade 2013, Composition of trade Australia 2012-13, December.
25 D epartment of Foreign Affairs and Trade 2013, Composition of trade Australia 2012-13, December.
region26 and ranks as Australia’s 16th-largest export destination. Austrade focuses on the GCC countries because that is where the agency can offer the most value and impact for Australian businesses and institutions.
Economic diversification is a pivotal consideration for GCC countries, and these economies are attempting to drive investment in non-oil opportunities, particularly in services, manufacturing and logistics. They typically have relatively greater stability and faster growth, and a deep trading relationship with Australia. There are also many similarities in the physical environment. Australia is therefore well placed to become a trusted partner with the GCC countries by sharing expertise in best practice and
26 D epartment of Foreign Affairs and Trade 2013, Country brief—United Arab Emirates, September.
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innovative technologies to help those countries manage challenges relating to food, water and energy security.
In April 2014, Austrade hosted a series of events to promote the bilateral trade, investment and cultural ties that exist between Australia and the Middle East and North Africa region. The Australia Unlimited MENA 2014 programme included water resource management and food safety forums, education and training seminars under the Future Unlimited brand, and infrastructure and investment roundtables, held in Dubai, Abu Dhabi, Riyadh, Muscat, Kuwait and Rabat. The objective was to reinforce the Australian Government’s
commitment to forging stronger trade, investment, and education and training relationships with the GCC countries and Morocco. Australia’s capabilities in food security, sustainability, economic diversity, human capital, and research and development were promoted, as well as Austrade’s suite of services available to businesses interested in trade and investment with Australia. The opportunities for Australian businesses, including key areas of potential collaboration between Australia and the GCC, were demonstrated across a number of sectors, including education and research, water resource management, food safety, agribusiness, infrastructure investment and construction.
Elena Kirillova Senior Trade Commissioner, Russia and the Commonwealth of Independent States, Moscow
Elena manages a team of eight in Austrade’s Moscow and Vladivostok offices. The team supports Australian companies exporting to Russia and education institutions
establishing links in the market. They also assist with site visits and other business trips to Australia. In the Commonwealth of Independent States (CIS), for example in Kazakhstan, Elena and her team focus on opportunities for Australian exporters in agribusiness, mining and energy, as well as promoting Australia as an international education destination.
Before joining Austrade, Elena, a solicitor, had two decades of legal experience in the Russian and CIS markets, and is a native Russian speaker. She points out that her past experience has allowed her ‘to develop an understanding not only of the legal systems and business practices, but also of the risks inherent in the changing political and economic landscape of the region’.
One of her most important tasks since taking up her role in Moscow has been to maintain team spirit and refocus Austrade’s work following Australian Government sanctions against Russia as a result of the Ukraine crisis. ‘We have ceased general promotional activities and are dedicating our time to supporting Australian companies in the uncertain and rapidly changing trade and investment environment’, she said.
Australian Trade Commission Annual Report 2013-14 48
Austrade supports Australian cherry exports to Myanmar In 2013, Austrade re-established its office in Myanmar after an absence of several decades. Myanmar has great potential as a market for speciality food products, and Australian cherry suppliers have already had success with the country’s biggest supermarket operator, City Mart, placing its first order in January 2014.
The arrival of the initial Australian cherry shipment was the culmination of six months of work by Austrade, including a programme of engagement with major companies in key industry sectors. While City Mart was already importing packaged and processed foods from Australia, it was interested in expanding its Australian range to include fresh produce, particularly cherries, for the Lunar New Year holiday season.
After the country’s many years of international isolation, there were no specific arrangements in place for Australian suppliers to export horticultural products to Myanmar. Austrade held discussions with Myanmar’s Ministry of Agriculture to clarify its import requirements, and then conveyed the information to the Australian Department of Agriculture so that it could update its register of importing country requirements—an essential step if Australian horticultural exports to Myanmar were to be permitted.
Austrade distributed information about the City Mart opportunity to Australian cherry growers and traders, and a list of interested suppliers was provided to City Mart. After negotiations on price, product specifications and timing, City Mart selected BGP Global Pty Ltd as the preferred supplier and placed its initial order.
The Australian cherries were a huge hit with local consumers, and the entire shipment sold out within 10 days. City Mart was delighted with the outcome and is planning to significantly expand its cherry imports from Australia during the 2014-15 growing season.
L-R: Mark Wood, Austrade; Win Win Tint, Managing Director, City Mart; and Brontë Moules, Australian Ambassador to Myanmar, at the Australian cherry promotion at City Mart’s flagship supermarket, marking the first shipment of Australian cherries into Myanmar, January 2014.
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PROMOTING AUSTRALIAN EDUCATION AND TRAINING INTERNATIONALLY In 2013-14, there were more than 568,000 international student enrolments across Australia’s higher education, vocational education and training, English-language and schools sectors. The higher education sector was the largest, accounting for almost 43 per cent of all international student enrolments in 2013-14.27
International education was worth $15 billion to the Australian economy in 2013, making it the third-largest of Australia’s exports (after iron ore and coal) and the largest services export.28
Australia’s international student enrolments by education sector are shown in Figure 12.
Austrade supports Australia’s international education sector by promoting Australia as an international education destination and a provider of high-quality education services; helping to grow demand for Australian education and training; and
27 D epartment of Education 2013, statistics, December.
28 A ustralian Bureau of Statistics 2014, International trade in goods and services, Australia, April 2014, cat. no. 5368.0.
contributing to the development of a sustainable international education sector.
Austrade works to achieve these three goals by:
⺠improving perceptions of Australia’s international education sector through the Future Unlimited brand and the provision of accurate information to potential international students through the Study in Australia website
⺠identifying and qualifying opportunities for Australian international education providers, including cross-industry and transnational education opportunities, especially in Asia and other emerging markets
⺠executing an effective engagement strategy with offshore education agents
⺠delivering high-quality and timely market research, intelligence and services to the international education sector
⺠engaging effectively with key government and non-government organisations and individual institutions onshore and offshore.
Figure 12: Student enrolments by sector, 2013
Higher education
China
India
Malaysia
Vietnam
Indonesia
VET
India
China
South Korea
Thailand
Indonesia
ELICOS
China
Brazil
Thailand
Colombia
South Korea
Schools
China
Vietnam
South Korea
Germany
Japan
Non-award
China
United States
Germany
United Kingdom
Brazil
89,145
16,639
14,960
11,134
8,713
28,813
13,227
9,759
8,858
5,900
28,008
10,069
9,068
8,806
7,990
7,737
1,778
1,734
882
853
6,406
5,383
1,475
1,328
1,070
VET = vocational education and training ELICOS = English Language Intensive Courses for Overseas Students Source: Department of Education.
Australian Trade Commission Annual Report 2013-14 50
Improving perceptions of Australia’s international education sector
Austrade administers the Study in Australia website, which has been endorsed by the Council of Australian Governments as the official source of information for international students.
In September 2013, the Hon Andrew Robb AO MP, Minister for Trade and Investment, launched the ‘Win your Future Unlimited’ competition, which was developed by Austrade to increase awareness and use of the website and engage students through the Future Unlimited brand. The competition brought Australia’s international education sector, leading corporations and the Australian Government together in a global digital campaign to creatively engage genuine prospective international students, increase consideration of an Australian education, and build the association between an Australian education and future success.
During the seven weeks of the campaign, the competition’s website received 835,000 visits and 37,000 entries from 172 countries. The competition resulted in an increase in engagement with social media, with the number of Study in Australia Facebook fans growing 81 per cent from 57,000 to103,000.
Austrade also continued to expand the reach of the Future Unlimited brand during 2013-14 through brand licensing. The number of Future Unlimited brand licensees increased from 285 at 30 June 2013 to 315 current licensees at 30 June 2014. This includes 234 Australian institutions and 81 international stakeholders and education agents. The licensed Australian education institutions accounted for around 74 per cent of international student enrolments
(around 336,852) in the top 200 Commonwealth Register of Institutions and Courses for Overseas Students providers in Australia in 2013.
Additional electronic marketing material, such as a map of universities in Australia and infographics, were also developed to support the promotional activities of Australian education institutions.
Identifying opportunities for Australian international education and training providers
Austrade supports the marketing activities of Australian education and training providers to attract international students to study in Australia. The agency uses its network across its 82 overseas offices in 48 markets to identify opportunities for Australian education and training providers, helping them to expand their services globally. In 2013-14, Austrade published 249 of these opportunities through its online subscriber-based Market Information Package—up 8 per cent from 2012-13.
During the year, Austrade also focused on long-term offshore education market initiatives in four markets—ASEAN, China, Japan and Brazil.
‘ T he “Win your Future Unlimited” competition received 37,000 entries from 172 countries.’
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Eliza Chui Education Commissioner and Consul Education, North Asia, Shanghai
Eliza works with Austrade’s education teams in China, Hong Kong, Taiwan, Korea and Mongolia to promote the Australian education and training sector. ‘Our
major target audiences include students and families who are considering study abroad, as well as local education organisations that are interested in international collaboration’, she said.
Austrade’s work in each market involves promoting Australia’s high-quality education and training offerings and promoting the
Australian education brand, Future Unlimited. Austrade also identifies potential partnerships and provides informed advice to students to encourage them to select Australia as their study destination.
Eliza has an exceptionally strong background in education, including more than 20 years’ experience in Australian universities and institutions in Hong Kong and Macau. She has worked in a wide range of portfolios, including executive secretariat management, research policy and performance analysis, international admissions and marketing. She said, ‘This past experience really gave me a solid understanding of the thinking behind the Australian education system. This is particularly useful in appreciating the differing needs and aspirations of education providers from the different subsectors and regions.’
ASEAN workforce skills development market initiative
In October 2013, Austrade led a two-week programme in Indonesia, the Philippines, Vietnam, Thailand and Myanmar aimed at increasing Australia’s transnational education delivery in Southeast Asia. Thirteen Australian education and training providers participated across the various stages of the programme, including public TAFE institutes, private training providers, universities and private consulting firms. The programme focused on the needs of specific sectors in each market, including mining, resources, oil and gas, infrastructure, hospitality, food safety, tourism, food processing, IT business process management, automotive, advanced manufacturing and infrastructure.
Employer surveys were conducted in Indonesia, the Philippines, Vietnam, Thailand, Singapore and Malaysia to identify skills gaps and subsequent opportunities for providers. The survey results have been made available through Austrade’s Market Information Package.
China schools initiative
Austrade’s China schools initiative aims to increase Australia’s share of the China schools market and capitalise on the trend in China for parents to send their children to study overseas at an early age. In 2013-14, Austrade’s activities under the initiative included:
Australian Trade Commission Annual Report 2013-14 52
⺠providing regular updates to interested Australian schools and key stakeholders on the progress of the initiative and upcoming activities
⺠publishing a booklet in Chinese highlighting the distinct advantages of an Australian school education and success stories of Chinese students on their Australian journey. The booklet is distributed to students, parents and education agents in China and can also be downloaded from the Study in Australia (China) website
⺠delivering an Australian schools promotional campaign through the Austrade China social media platform of Future Unlimited from January to April 2014
⺠delivering school-specific marketing events in eight cities, which were run by Austrade or in collaboration with education agents and stakeholders
⺠strengthening market intelligence through sector-specific analysis of source provinces and cities of student visa applicants
⺠identifying and facilitating opportunities for collaboration between Australian and Chinese schools.
In February 2014, the Australian Government announced a reduction in the age requirement from Year 10 to Year 7 for students obtaining student visas in Australia. This will further support the long-term development and sustainability of the China schools market.
Japan global human capital initiative
Austrade continues to work with Australian education providers engaged in the Japan global human capital initiative. The initiative aims to capitalise on Japan’s need to develop the skills of its executives to achieve English-language competency and use that competency
in a business setting, along with cross-cultural understanding and an ability to adapt to different environments, display global leadership skills and transfer know-how to local staff.
Austrade’s engagement in the initiative contributed to the development of a global human capital programme between the Nishi-Nippon City Bank and the University of New South Wales. Following negotiations about training concepts and potential programme options, the university’s Institute of Languages was selected to provide a tailored global human capital course for a delegation from the Nishi-Nippon City Bank’s Kyushu branch, including selected in-house senior staff and senior executives from its customer base.
The programme included a combination of homestay, study and business experiences— all in a 24-hour English-language setting. The programme has generated strong interest from other banks and financial institutions in Japan, as well as major industry bodies such as the Kyushu Economic Federation.
Brazil higher education initiative
The Brazil higher education initiative helps to position Australia as a high-quality education destination for Brazilian students and aims to expand Australia’s market share beyond the ELICOS (English Language Intensive Courses for Overseas Students) and vocational education and training sectors into Brazil’s higher education market.
In 2013-14, Austrade helped to strengthen bilateral research ties by facilitating a new joint research agreement between the Australian Technology Network and FAPESP, the Sao Paulo Research Foundation. The agreement, worth $1 million
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over five years, opens the way for research collaboration between the network’s member universities and Sao Paulo state universities.
Austrade also continued to focus on developing opportunities available through the Brazilian Government’s Science without Borders programme, which aims to send 100,000 Brazilian students and researchers to study abroad by 2014. Austrade assisted Australian universities to enter into agreements with the Brazilian Government’s scholarships agencies, which resulted in 4,168 students being placed in universities in Australia since the programme began in 2012.
Engagement with offshore education agents
Education agents are responsible for directly recruiting international students to education institutions and they play a critical role in promoting Australia as a high-quality international education destination to prospective international students and their parents. Austrade maintains strong relationships with a wide network of education agents through specialised newsletters and regular seminars and events held across its international network as well as in Australia.
Austrade’s engagement activity helps to keep education agents and their associations up to date with the ongoing implementation of the recommendations of the 2011 review of the student visa programme (the Knight Review). It also assists education agents’ understanding of the latest rules and policies that directly affect potential and current international students, such as the streamlining of visa processing for higher education applicants and changes to the student visa assessment levels.
The annual Future Unlimited Australian Education Training Programme, held in Bangkok in May 2014, provided Austrade with the opportunity
to engage with more than 100 influential Thai education agents who were seeking to enhance their expertise and knowledge to best promote Australian education to students and parents. Atthe event, education agents received detailed market briefings from Austrade and policy updates from the Department of Immigration and Border Protection and the Department of Education. Guest speakers at the event provided a briefing on the Australian education system, and spoke about specific issues for Thai students studying in Australia, tips for planning successful communications strategies, and skills demands and career paths for Thai students.
Thai education agents participating in the Future Unlimited Australian Education Training Programme in Bangkok, May 2014.
In Australia, Austrade supplemented its offshore activities by addressing the annual Australia New Zealand Agent Workshop, held in Sydney in April 2014, which attracted more than 400 participants representing around 300 organisations from 52 countries.
Education agents also play a key role in the ongoing expansion of the Future Unlimited brand. By negotiating with a number of reputable education agents and their associations in key markets, Austrade has been able to expand the global reach of the Future Unlimited brand through its brand licensing programme. As a result, the
Australian Trade Commission Annual Report 2013-14 54
number of international education agents and associations licensed to use the brand increased from 80 to 123 in 2013-14, covering 61 countries.
Market research and intelligence
Austrade provides up-to-date market intelligence on issues that can affect Australia’s international education sector or create opportunities for the sector. The information is provided through the subscriber-based Market Information Package (MIP) service on the Austrade website and through in-market briefings to the sector.
The MIP service, which is accessed by more than 280 subscribing organisations, delivers market intelligence, market opportunities, publications, reports and event information to the international education sector. In 2013-14, 550 articles were published through the service and the number of subscribing organisations increased by 41 per cent. Austrade also produces a free e-newsletter for the international education sector called MIP Weekly. In 2013-14, the number of recipients of MIP Weekly increased by 18 per cent.
Extensive work was undertaken in 2013-14 to enhance the MIP service. This work included the redevelopment of education website pages with refreshed content and improved usability and search functionality; the adoption of a new approach to content publication outside the subscription paywall; and the use of Twitter to publicise new MIP articles, which was introduced in October 2013.
These initiatives, combined with the MIP e-newsletter changing from a fortnightly to weekly publication, resulted in an increase of 180 per cent in traffic on the education pages of the Austrade website, and a record 412,757 unique website visitors.
In April 2014, Austrade ran its second MIP readership survey, which was designed to benchmark progress achieved since the original survey in 2011, and identify potential for further improvements in the service. The key findings from the 2014 survey are discussed on page 55.
Austrade’s offshore network also continued to deliver valuable in-country briefings and market updates for education providers and tailored market research to individual education institutions online through webinars, including an ASEAN skills development briefing and a West Africa education briefing.
Austrade also produced 14 education market snapshots, which included the emerging markets of Myanmar, South Africa and Nigeria, along with education-focused capability statements.
In 2013-14, Austrade published six reports based on the outcomes of an employer survey conducted as part of the ASEAN workforce skills development market initiative. Employers in six ASEAN markets were interviewed about their skills needs, their current training arrangements and the extent of their engagement with local and international providers. The survey aimed to identify and understand:
⺠trends, similarities and differences in the demand for training solutions by industry in ASEAN to address skills gaps in the countries’ workforces
⺠skill sets or technical areas where training is required
⺠current and preferred modes of delivery and models of partnership for industry with local or foreign training providers.
Reports for five markets were published through Austrade’s Market Information Package and were downloaded 683 times.
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Austrade also published Unlocking India’s potential: commercially successful vocational education and training, which reported on research on the challenges and risks involved in engaging locally in India’s vocational training market—which is valued at around $1.8 billion and estimated to be growing by 25 per cent each year. The research was done by Austrade and Sannam S4, a local consultancy firm in India.
The research paper discussed ways to structure a business model to overcome challenges and risks, and featured three successful models of vocational education and training delivery as case studies. Since its publication in September 2013, the paper has been downloaded 300 times.
Market Information Packagesurvey In April 2014, Austrade commissioned Colmar Brunton to survey the 4,200-plus users of its Market Information Package (MIP) service, which provides valuable and timely market intelligence, analysis, opportunities and data to support Australia’s international education and training sector. The survey results provide direction for the future development of the MIP service’s content, delivery medium and subscription model, and associated pricing. It followed a similar survey conducted in 2011 (the recommendations of which have now been fully implemented).
The 2014 survey found that in the three years since the 2011 survey, the MIP service’s net promoter score had increased from +13 per cent to +38 per cent. The survey also
revealed that 86 per cent of subscribers had accessed information from the MIP service and 75 per cent of website subscribers had followed up on opportunities provided through the service. Nearly 80 per cent of subscribers indicated that they were either satisfied or very satisfied with the MIP.
To further enhance the product, Austrade will continue to develop the MIP by:
⺠introducing data visualisation functionality ⺠creating the ability for users to customise website content and the frequency of email notifications
⺠publishing timely, high-level strategic analysis research papers to enable MIP users to be more responsive to changing market conditions and assist Australian education providers to develop their product offerings and marketing strategies.
Australian Trade Commission Annual Report 2013-14 56
Engagement with education stakeholders and organisations
Engagement with Australian education stakeholders and state and territory government agencies is critical to the successful international marketing and promotion of Australian education and training.
In 2013-14, Austrade engaged with peak bodies through a variety of forums, as well as through individual projects and events. Activities and events that Austrade delivered in collaboration with the education sector included:
⺠the ‘Win your Future Unlimited’ competition, with the support of 26 sponsors, including 22 education providers and four corporate organisations
⺠facilitating participation by Australian education and training providers in offshore business missions, such as the Australia Week in China education programme, which attracted 68 education delegates (see page 38), and the workforce skills development mission to ASEAN
⺠a range of Australian education promotions, including Future Unlimited education exhibitions in Australia and roadshows in Korea, Taiwan, Sri Lanka, Vietnam, the United Arab Emirates and Mongolia
⺠hosting alumni awards and engagement activities in a number of markets, including India, Pakistan, Sri Lanka, Bangladesh, Singapore and Malaysia
⺠speaking at major conferences, forums and events hosted by English Australia, Universities Australia, the Australian Council for Private Education and Training, the United States National Association of Foreign Student
Advisers, the European Association for International Education, and the International Education Association of Australia
⺠hosting Australia-based education events to support student outcomes in conjunction with Australian education providers, such as the Australia China Careers Fair held in Sydney, Melbourne and Brisbane in September 2013
⺠providing tailored services to individual education and training clients in offshore markets
⺠assisting with missions by stakeholders, such as the Australian Council for Private Education and Training’s missions to China, Indonesia and India
⺠facilitating overseas customer visits to Australia, including visits by the Qatar National Command Centre, Qatar Ministry of Interior representatives and Brazilian industry training groups SENAI and SENAC
⺠delivering country-focused seminars and webinars on markets such as the Philippines, Bangladesh, Japan and West Africa.
In addition to its work with the sector, Austrade also engages with other Australian and state and territory government agencies. In 2013-14, Austrade participated in the quarterly State Marketing Forum, which aims to inform government promotion of the international education sector, and a Digital Content Working Group established to coordinate and enhance the provision of digital information to international students. Austrade also participated in the Education Visa Consultative Committee, which is chaired by the Department of Immigration and Border Protection.
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‘Win your Future Unlimited’ digital postcard competition Austrade developed the ‘Win your Future Unlimited’ digital postcard competition as part of a campaign to promote Australia as a high-quality education destination and to strengthen the association between a quality Australian education and future success.
The dedicated competition website, www.futureunlimited.com.au, invited prospective international students to create a digital postcard that illustrated their aspirations for the future and describe how an Australian education could take them there.
Over seven weeks, from 1 October to 18 November 2013, the competition offered weekly finalists a two-week study tour around Australia. Finalists were then interviewed by a panel of three international education representatives for the chance to win a year of study in Australia, including flights, tuition, accommodation, a $15,000 stipend and additional prizes.
The competition received strong financial and in-kind sponsorship totalling just under $500,000, from five gold sponsors— ETS TOEFL (Test of English as a Foreign Language), National Australia Bank, Qantas, Telstra and the University of New South Wales—and another 21 of Australia’s tertiary education and training providers.
Austrade used its offshore network to promote the competition through a targeted online advertising campaign and other activities
in Brazil, China, India, Indonesia, Malaysia, the Philippines, Korea, Thailand, Turkey and Vietnam. The competition was also promoted by the Hon Andrew Robb AO MP, Minister for Trade and Investment, sponsors and keystakeholders.
The overall competition winner, Uttam Kumar from India, was announced by Mr Robb at an event in Sydney in December 2013. Mr Kumar impressed the judges with the clarity, honesty and creativity with which he made his case to study in Australia. He has since chosen to undertake his Doctor of Philosophy at the University of New South Wales and will blog about his experiences in Australia over a 12-month period from July 2014. The blog can be found at www.studyinaustralia.gov.au/ uttams-blog.
More information about the competition is available at www.futureunlimited.com.au and the wrap-up video can be seen on YouTube.
The Hon Andrew Robb AO MP, Minister for Trade and Investment, with ‘Win your Future Unlimited’ competition winner Uttam Kumar.
Australian Trade Commission Annual Report 2013-14 58
School partnerships forged between Australia and China In late 2011, an opportunity was published through Austrade’s Market Information Package on school partnerships sought by the Government of Taizhou in the Zhejiang Province of China.
Kambrya College, a government school in Victoria with little prior experience in China, responded to this opportunity to develop its international programme.
As a result, in May 2012, the college joined Austrade’s Australian Schools Mission to Taizhou, together with others from the Australian Capital Territory, New South Wales, South Australia and Victoria.
Since taking part in the mission, Kambrya College has been able to build on its international programme in China through a number of initiatives, including:
⺠signing a memorandum of understanding for collaboration with two schools in Taizhou
⺠conducting annual study tours between Australia and China for staff and students, which began in August 2012
⺠offering Chinese language classes to its Australian students
⺠setting up an intensive English language programme for its international students
⺠developing a Chinese website for college promotion
⺠participating in Austrade’s Australia pavilion at the China International Education Exhibition Tour in 2013 and 2014
⺠increasing its Chinese student numbers from zero in 2013 to six in 2014.
The college is actively working to expand its presence in China, and is steadily developing its international programme with the objective of recruiting 40 to 50 international students during the next few years. Following its successful work in China, which was supported by Austrade, Kambrya College is now seeking similar collaborations in other markets.
Taizhou school students teach Kambrya College students the finer points of table tennis during a visit to Taizhou as part of Kambrya College’s international programme.
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ATTRACTING PRODUCTIVE FOREIGN DIRECT INVESTMENT TO AUSTRALIA Like global trade flows, foreign direct investment (FDI) flows have also been influenced by the softer environment following the global financial crisis. According to UNCTAD, after peaking at just over US$2 trillion in 2007, global FDI inflows fell sharply during the global financial crisis. By 2013, they had recovered to be worth about US$1.45 trillion. UNCTAD forecasts these flows to rise to US$1.6 trillion in 2014; US$1.75 trillion in 2015; and US$1.85 trillion in 2016, but this will still leave them below their pre-crisis high.29
In 2014, as Australia entered its 23rd year of uninterrupted annual economic growth, the total stock of foreign investment in Australia—that is, FDI and other investment—reached $2.5 trillion.30 Both FDI and other investment (including portfolio investment) have recorded strong growth, up 8.3 per cent and 10 per cent each year respectively since 1993.31 Australia’s value of total foreign investment stock has now firmed up to over 160 per cent of gross domestic product, rising from less than 90 per cent two decades ago.
The United States, the United Kingdom and Japan remain Australia’s three largest investors, with total FDI stock values accounting for 24 per cent, 14 per cent and 10 per cent respectively. FDI from the United States and the United Kingdom was robust, rising 13 per cent and 10 per cent respectively in 2013, building on the increase from
29 UNCTAD 2014, World Investment Report 2014—Investing in the Sustainable Development Goals: An action plan.
30 A ustralian Bureau of Statistics 2014, Balance of payments and international investment position, Australia, cat. no. 5302.0, Table 29: International investment: levels of foreign liabilities—March 2014.
31 A ustralian Bureau of Statistics 2014, Balance of payments and international investment position, Australia, cat. no. 5302.0, Table 29: International investment: levels of foreign liabilities—March 2014.
the previous year. Japan also performed well, growing by 2 per cent in 2013 to $63 billion, which is double 2007 (pre-global financial crisis) levels.
In recent years, there has been a solid increase in capital inflows from other major Asian economies, a trend reflecting Australia’s close ties in the fast-growing region. China has overtaken Switzerland and Canada as the sixth-largest foreign direct investor in Australia, with a total direct investment value of almost $21 billion. This latest figure represents a 29 per cent increase from 2012. Other Asian nations are also emerging as fast-growing sources of FDI, with Singapore rising by 5.3 per cent to $25 billion and Malaysia by 36 per cent to $7.7 billion in 2013.32
Reflecting Australia’s diverse economy, more than 60 per cent of total investment is outside the traditional mining and energy sectors. The sectors with the largest share are manufacturing, finance and insurance, and wholesale and retail trade.33 With commodity prices decreasing as global demands for raw materials are met with supply, Australia will require a shift from traditional mining to new sectors. To respond to these future global demands, Australia will need to develop innovative and competitive industries. Attracting industry participation and productive investment from leading global firms will be critical to future success.
32 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year.
33 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table15a: Foreign investment in Australia: level of investment at 31December by Industry Division (ANZSIC).
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Austrade’s role
As Australia’s foreign direct investment promotion agency, Austrade leads a national, whole-of-government strategy for FDI promotion. Austrade coordinates closely with federal, state and territory departments and agencies, professional services firms and industry partners to promote, attract and facilitate investment into Australia. Austrade’s promotion and attraction activities extend across its global network.
At the inaugural Trade and Investment Ministers Meeting in February 2014, the Hon Andrew Robb AO MP, Minister for Trade and Investment, secured the endorsem*nt of state and territory trade and investment ministers for Australia’s five national investment priority industries. The priorities are:
⺠agribusiness and food ⺠resources and energy ⺠major infrastructure ⺠tourism infrastructure
⺠advanced manufacturing, services and technologies.
During the year, Austrade worked with states and territories to refine the scope and strategies for the five national investment attraction priorities. Austrade’s global investment network actively promoted the priority areas through campaigns that also demonstrated Australia’s strengths across the investment attraction themes of growth, talent, location, innovation and business environment.
Working with stakeholders
Austrade’s core business of attracting productive FDI into Australia requires daily cooperation with federal, state and territory government departments, both onshore and offshore. The investment cycle starts with strategies developed
with partner agencies and in accordance with government policy, before Austrade undertakes promotion offshore. Austrade works closely with stakeholders during the attraction phase, and supports states and territories during project facilitation and support.
In 2013-14, Austrade led three meetings of the Senior Officials Trade and Investment Group and three meetings of the National Investment Advisory Board. Austrade chairs and delivers the secretariat function for the board.
The National Investment Advisory Board is a key planning and reporting mechanism that assists Austrade to work closely with state and territory investment promotion agencies on strategy implementation, investment promotion and facilitation, and staff training and development. Under the auspices of the board, Austrade delivers the Winning Investment for Australia programme, which aims to build a professional and global team approach to investment promotion, attraction and facilitation across government. The programme was delivered twice during 2013-14, in Perth and Brisbane, with 23 graduates from Austrade, 34 from state and territory agencies and five from other Australian Government agencies. Austrade also co-delivered a tailored version of the programme for 30 investment attraction staff from the NSW Government.
In December 2013, 12 Austrade investment specialists based in Japan and ASEAN countries attended a consultative selling programme in Singapore. Other participants in the programme included representatives from the Western Australian and Victorian state governments.
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Enhancing the investment environment through commercial insights
Austrade’s investment staff members are located in global investment source markets and operate in a competitive business environment where foreign investors are routinely targeted by numerous national and regional investment promotion agencies. Austrade’s connectivity with investors provides insights into opportunities and barriers to investment at all levels of government. Austrade uses its insights to support and inform other government agencies and ensure that Australia continues to offer a competitive investment environment.
In 2013, Austrade supported the Productivity Commission’s inquiry into public infrastructure by identifying and encouraging global infrastructure companies and associations to make submissions. Austrade also lodged a submission that discussed investor perceptions, tendering costs, the project pipeline, and sovereign risk management.
During the year, Mr Robb announced the appointment at Austrade of a small team of senior investment specialists (to be in place by the first half of 2014-15) with deep industry connections, who will work with state and territory governments to identify significant investment opportunities and help see them realised.
Promotion and attraction of foreign direct investment
Austrade works in close collaboration with state and territory governments to demonstrate Australia’s competitive advantages as an investment destination. In 2013-14, Austrade contributed significantly to 72 inward investments. Seventy-eight per cent of Austrade-assisted inward investment outcomes were in established markets—the largest source markets were the
United States at 38 per cent, followed by Germany with 9 per cent. India was the third-largest source market at 8 per cent. East Asian markets collectively accounted for 15 per cent of outcomes. Figure 13 shows the distribution of investment outcomes assisted by Austrade in2013-14.
Figure 13: Austrade-assisted investment outcomes by source market, 2013-14
Singapore 4%
North America 39%
Western
Europe and UK 33%
Japan 5%
India 8%
Greater China(a) 11%
(a) I ncludes Hong Kong and Taiwan.
Among the agreed five priority industries, advanced manufacturing, services and technologies accounted for 38 per cent, with the subsector of digital technologies accounting for 29 per cent of total outcomes. The resources and energy, major infrastructure, tourism infrastructure, and agribusiness and food industries accounted for 24 per cent, 12 per cent, 11 per cent and 4 per cent respectively. Non-priority industries made up 11 per cent of outcomes, with the majority of results in retail, water management, transport and logistics, and media. Figure 14 shows the industry sector distribution of investment outcomes assisted by Austrade.
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Figure 14: Austrade-assisted investment outcomes by industry sector, 2013-14
Agribusiness and food 4% Advanced
manufacturing, services and technology 38%
Resources and energy 24%
Other investment 11%
Tourism infrastructure 11%
Major infrastructure 12%
Austrade also recorded 42 investment priority milestones. These included multinational corporations establishing an Australian presence to test the market, submitting bids or expressions of interest to tenders, and signing nondisclosure agreements with Australian institutions and research centres. These exploratory activities are often the first serious steps taken by global corporations when considering whether to invest in Australia—a process that can take several years—and they are commonly an indication of expected future investment.
To deliver investment outcomes, Austrade manages a comprehensive pipeline of qualified investment opportunities. During 2013-14, Austrade shared 223 qualified investment leads with states and territories, including 58 investor site visits.
The traditional markets of North America and Western Europe continue to dominate the pipeline, although investment opportunities from China and India are strong. From an industry perspective, 91.5 per cent of project leads sit within the agreed investment priority industries. Resources and energy (30 per cent), advanced
manufacturing, services and technologies (25 per cent) and major infrastructure (18 per cent) make up the bulk of qualified leads.
Austrade’s investment network
North America
The United States is the primary driver of global foreign direct investment. US outbound investment stock value rose to around US$4.5 trillion in 2012 from US$1.6 trillion in 2002, and 75 per cent of this was directed at developed economies.
34 The
United States is also Australia’s largest source of FDI, representing 23.7 per cent of stock. In 2013, US FDI stock rose 13.3 per cent to $149.5 billion,35 and Australia was ranked as the 10th-largest destination in 2012.36 Australia received 3 per cent of US total outbound investment in 2012, which was up from 2.4 per cent in 2002. Two-way investment—FDI and other investment—between the United States and Australia exceeded $1.1 trillion in 2013.37
In January 2014, Austrade managed a visit by Mr Robb to Los Angeles and San Francisco where he took part in G’Day USA programmes and met with key investment companies in the tourism, infrastructure and information technology sectors. Mr Robb also chaired business roundtables in Los Angeles and San Francisco with prospective US investors and Australian companies from
34 UNCTAD 2014, FDI statistics, bilateral FDI statistics, United States, Table 4: FDI stock abroad, by geographical destination.
35 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year.
36 UNCTAD 2014, FDI statistics, bilateral FDI statistics, United States, Table 4: FDI stock abroad, by geographical destination.
37 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year; and Table 5: Australian investment abroad: level of investment by country and country groups by type of investment and year.
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multiple sectors. He also launched Austrade’s Why Australia: benchmark report 2014 at the US- Australia Dialogue and gave a keynote address to 150 executives at the innovation and digital economy investment event in San Francisco.
In Canada, two-way investment with Australia is approximately $80.6 billion, with Canadian investment in Australia at almost $27 billion and FDI at $16.6 billion.38 Canada is an important source market for infrastructure finance because Canadian defined benefit pension funds are particularly interested in Australia as an investment location.
During 2013-14, Austrade hosted a series of targeted infrastructure finance roundtables in the major business centres of Toronto, Montreal and Vancouver, featuring speakers from Austrade, the Australian High Commission, the Department of Infrastructure and Regional Development, Macquarie Capital, ANZ Bank, PCL Constructors and Bombardier.
Europe
Europe continues to be a major source of FDI into Australia. Stock from European Union countries reached approximately $156 billion in 2013, or approximately 24.8 per cent of Australia’s total FDI.
The United Kingdom represents over half of total FDI from the European Union, maintaining its position as Australia’s second-largest source market of FDI after the United States. UK FDI stock in Australia reached $86.7 billion in 2013, and Australia was ranked as the fifth-largest FDI destination in 2012. Australia received 3.9 per cent
38 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year; and Table 5: Australian investment abroad: level of investment by country and country groups by type of investment and year.
of the United Kingdom’s total outbound investment stock in 2012, up from 3.3 per cent in 2011 and 2.3 per cent in 2002.39 Two-way investment between the United Kingdom and Australia totalled $819 billion in 2013.40 In this large and highly competitive FDI market, Austrade’s major areas of focus, in line with Australia’s national investment priorities, include major infrastructure financing, the agribusiness and food sector, tourism infrastructure and digital technologies.
The United Kingdom is a traditional source market for ICT, and during 2013-14, Austrade focused on promoting Australian investment opportunities in cloud computing and cybersecurity. Austrade worked with UK Trade & Investment on the Tech Opportunities in Australia seminar, providing a cybersecurity briefing with TechUK on Australia’s new cybersecurity centre. A series of roundtables with potential UK investors was held, including one chaired by the Hon Malcolm Turnbull MP, Minister for Communications, focusing on Australia’s digital opportunities.
Germany is the ninth-largest source of FDI into Australia, with $13.8 billion in 2013.41 German, Swiss and Austrian companies specialising in carbon fibre, polymers and nanotechnology research have expressed considerable interest in collaborating with Australian industry and research institutes in advanced materials science and technology. To take advantage of this opportunity, Austrade promotes carbon fibre composites as
39 UNCTAD 2014, FDI statistics, bilateral FDI statistics, United Kingdom, Table 4: FDI stock abroad, by geographical destination.
40 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year; and Table 5: Australian investment abroad: level of investment by country and country groups by type of investment and year.
41 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year.
Australian Trade Commission Annual Report 2013-14 64
an area of strength within Australia’s material science capabilities. As a result, the Victorian Centre for Advanced Materials Manufacturing and MAI Carbon from Augsburg, Germany, signed a
memorandum of understanding laying out plans for partnerships focused on collaboration between industry and the research community in Australia and Germany.
Italian confectionery maker chooses Australia for $70 million investment Italy’s Ferrero Group is a multinational manufacturer of well-known confectionery products. In Australia, Ferrero employs more than 300 people. It produces Nutella spread and Tic Tac confectionery at its factory in Lithgow, New South Wales, for Australian and Asia-Pacific markets. In addition to its local production, the company’s commercial division also sells imported brands such as Ferrero Rocher, Kinder Surprise and Kinder Bueno in the local market.
Ferrero Australia sourced all raw ingredients from Australian suppliers except cocoa and hazelnuts, but it wanted an environmentally friendly and sustainable solution to its supply chain challenge for hazelnuts—a key commodity in the production of many of itsproducts.
In 2010, Austrade met the Ferrero Group at a carbon exhibition in Cologne, Germany, and worked closely with its executives to understand the company’s needs. Austrade provided a tailored information package that included details on carbon credits, water permits and hazelnut plantations in Australia. After the company expressed its interest in New South Wales, Austrade collaborated with the NSW Government to share information and manage the relationship.
In November 2013, Ferrero Group announced a $70 million hazelnut project in Australia through a local subsidiary, Agri Australis, highlighting Australia’s strength in the agribusiness sector. The group will plant one million hazelnut trees on 2,000 hectares of land in the Riverina region. Planting began in May 2014.
Future opportunities arising from this investment are strong. Ferrero will provide technical assistance to local growers to help develop an Australian hazelnut industry. Import substitution of nuts and Ferrero’s expansion into neighbouring Asian markets will potentially lead to stronger domestic hazelnut production capacity, and the potential for food-processingfacilities.
L-R: Barry O’Farrell, the then NSW Premier, and Alessandro Boccardo, General Manager of Agri Australis, celebrate the announcement of Ferrero’s Agri Australis hazelnut venture in Sydney, November 2013. Image used with permission of jimricephotography.com.
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Australia’s infrastructure sector has also attracted extensive interest, particularly in private financing, which has been driven by low returns on investments in Europe. Spain, Italy and France have some of the world’s largest infrastructure companies with diverse international experience in complex civil works, rail, water management and social infrastructure under public-private partnership structures. The continued downturn in the construction sector in Europe and the United States, a natural maturation of existing investment markets such as Latin America, and the stability of the Australian market have led to strong interest from southern European investors.
In November 2013, Austrade assisted a Spanish Trade Commission-led delegation to Australia. Austrade’s CEO addressed 40 leading Spanish companies. The programme included discussions with senior representatives from Infrastructure Australia, the WestConnex Delivery Authority and the Linking Melbourne Authority. The mission also marked the inclusion of Australia as a priority in the Spanish Ministry of Trade and Investment’s market priority development plan. This reinforced Australia’s reputation as a key investment destination for Spanish companies and improved access to concessional finance for business activities in Australia. The presence of Spanish companies in Australia has grown steadily in recent years, with more than 80 companies now operating a permanent presence in a wide range of sectors.
Japan
When viewed over a five-year period, after China, Australia is the preferred destination for Japanese FDI in the Asia-Pacific region. 42 Japan is
42 J apan External Trade Organization, from Ministry of Finance balance of payments statistics and Bank of Japan foreign exchange rates, 2008-2012.
Australia’s largest Asian source of FDI and remains Australia’s third-largest direct foreign investor overall. As the source of approximately $130 billion or 5.3 per cent of total foreign investment into Australia, Japanese FDI stock totalled more than $63 billion or 10 per cent of Australia’s total FDI stock in 2013.43
Japanese investment has traditionally concentrated on the mining sector.44 Japanese companies continue to make multibillion-dollar investments into Australia’s resources sector, such as the $34 billion Ichthys project near Darwin, headed by Japan’s INPEX. This will be the first Japanese-operated liquefied natural gas project anywhere in the world and production is scheduled to start in 2016.
There are new growth opportunities beyond resources, and Austrade has identified increased interest in major economic infrastructure, agribusiness, finance and insurance, wholesale and retail, chemicals and pharmaceuticals, and algae projects focused both on biofuel and cosmetic inputs.
Japan’s drive for food self-sufficiency and Australia’s clean and green credentials make Australia attractive to Japanese investors, who are looking for semi-processed, high-quality commodities with traceability, where long-term access is difficult to guarantee solely through trade.
43 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year.
44 S ixty-three per cent of all approvals by the Foreign Investment Review Board for Japanese companies related to mineral exploration and development. (Source: Foreign Investment Review Board 2013, Annual Report 2012-2013, Table 2.11: Approvals by country of investor in 2012-13 - Industry sector.)
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In response, Austrade has undertaken an intensive targeted campaign, working closely with Japanese trading houses, speciality manufacturers and Japanese banks acting as financial advisers, to present agribusiness and food investment opportunities in Australia. Key drivers, such as increased competition for commodities like dairy and wheat, and an opportunity to benefit from improved competitiveness of Australian produce in Japan as a result of the Japan-Australia Economic Partnership Agreement, help strengthen Australia’s attractiveness.
The ongoing role Australia can play in supporting Japan to meet its energy and mineral needs remains a focus. During 2013-14, Austrade supported proponents undertaking feasibility and pre-feasibility work on projects focused on hydrogen production for export to Japan designed to address Japan’s next-generation energy requirements.
China
China has emerged as an important source of FDI in Australia and its position is growing. China’s outbound FDI grew by 25 per cent to US$532 billion in 2012,45 making it one of the world’s largest outbound investors. In 2013, China overtook Switzerland and Canada to become the sixth-largest foreign direct investor in Australia, with a total value of almost $21 billion. This latest figure represents an annual compound growth rate of about 42 per cent since 2008.46
In 2013, China’s merger and acquisition activity in Australia had the highest growth since 2009, rising 34 per cent to US$7.7 billion. Australia was
45 UNCTAD 2014, FDI statistics, bilateral FDI statistics, China, Table 4: FDI stock abroad, by geographical destination.
46 A ustralian Bureau of Statistics 2014, International investment position, Australia: supplementary statistics, 2013, cat. no. 5352.0, Table 2: Foreign investment in Australia: level of investment by country and country groups by type of investment and year.
its third-largest investment destination behind the United States and Canada, attracting 15 per cent of Chinese merger and acquisition activity.47 For the first time, Chinese merger and acquisition investment in Australia was not concentrated in the mining sector, demonstrating increasing interest in Australia’s broader competitive advantages through investment diversification.
Hong Kong plays an integral role in Chinese investment, both as a source of FDI in its own right and as the principal springboard for Chinese outbound investment. Hong Kong is ranked the 12th-largest foreign direct investor in Australia, with total stock of $7.4 billion.
Tourism infrastructure is a target of FDI from China. Investor interest is underpinned by a compound growth rate of 19 per cent per annum in the number of visitors from China to Australia between 1993 and 2013.48 In 2012, China overtook the United Kingdom as Australia’s second-largest inbound travel market, and visitor numbers increased to more than 715,000 in 2013 (up 14.2 per cent on 2012). In 2013, Chinese visitors spent $4.8 billion on Australian travel—more than travellers from any other country. Visitor numbers from China continue to rise and Tourism Australia estimates that annual spending by Chinese visitors to Australia could rise to $13 billion by 2020.49
In April 2014, Mr Robb led more than 700 Australian delegates to the inaugural Australia Week in China, Australia’s largest-ever trade and investment mission. During the event, he chaired two high-level investment roundtables, one of which was
47 P ricewaterhouseCoopers 2014, Trends in M&A, China outbound deals: 2013 review and 2014 outlook, deals point of view, February.
48 A ustralian Bureau of Statistics 2014, Overseas arrivals and departures, Australia, cat. no. 3401.0, Table 5: Short-term movement, visitor arrivals—selected countries of residence: original (time series workbook).
49 T ourism Australia 2014, ‘Chinese visitor spending projected to hit A$13 billion by 2020’, 14 May, www.tourism.australia.com/markets/ market-regions-greater-china-Chinese-Visitor-2020.aspx.
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focused exclusively on tourism infrastructure and was delivered through close collaboration between Austrade and Tourism Australia. For more information on Australia Week in China, see page 38.
In 2013-14, Austrade supported five tourism infrastructure inward investment outcomes from the China region—Fullshare’s acquisition of the Sheraton
Mirage Port Douglas; KCC Real Estate Development Company’s redevelopment of Willow Creek Vineyard on the Mornington Peninsula; Shanghai Greenland’s boutique hotel proposal in Sydney’s Greenland Centre; Chang Yuang’s investment in Acacia Court Hotel in Cairns; and Far East Consortium International Limited’s investment in Elizabeth Quay, Perth.
China’s KCC chooses Australia for first overseas hotel When Austrade and Tourism Australia began working together to identify potential tourism infrastructure investors in China, it was clear that KCC Real Estate Development Company was a standout thanks to its existing hotel investments and trade connections in Australia.
Bill Zhuang was the general manager of KCC’s investment advisers, Evans & Peck (Kunming), at the time. ‘We were also looking at [investing in] Southeast Asia but the potential of Willow Creek was impossible to ignore’, said Mr Zhuang. He is now the chief operating officer of KCC’s Australian investment arm, Cloud Investment Operations, and has moved to Melbourne where Cloud is headquartered.
In January 2013, Austrade and Tourism Victoria assisted KCC with its initial site inspections and detailed discussions with potential sellers. In October 2013, KCC officially took ownership of Willow Creek Winery. The estate is an 18-hectare vineyard on the Mornington
Peninsula in Victoria—and future home of a $10 million, 40-room upmarket boutique hotel. ‘The previous owners completed the council and regional approvals process, and we already have our design concept in place’, Mr Zhuang said.
Willow Creek is KCC’s first tourism infrastructure investment outside China, and when the hotel opens in 2015, it will be the seventh in KCC’s portfolio.
Even as the company negotiates with architects, planners and management groups ahead of breaking ground on its hotel development, Willow Creek’s 20-year-old vines provide KCC with trade opportunities.
Willow Creek produces mainly pinot noir and chardonnay, but Mr Zhuang says most of the red wine consumed in China is shiraz or cabernet sauvignon, signalling a growth opportunity ‘for a new variety like pinot noir, that is not well known in China, which we have a chance to take to the market’.
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Austrade has an extensive network of investment specialists around the world who work with
Ross Cooper Investment Adviser, Sydney Ross works with colleagues in offshore locations to attract foreign direct investment into Australia. At Austrade, Ross gained expertise in financial services and product development and research before taking up his current role in the area of advanced manufacturing, services and technologies.
One of Ross’s first projects at Austrade in 2010 was managing the development and delivery of the inaugural edition of Australia’s banking industry. It was translated into Chinese and was launched by the Minister for Trade to Chinese banks and the financial services industry during a business mission to Shanghai.
Before joining Austrade, Ross worked for eight years in Australia’s funds management industry mainly as an investment analyst for smaller companies. ‘In funds management you are investing other people’s money, so there is a lot of rigour in understanding valuations and the basis for business expansion decisions. This experience has been useful in my current role to influence companies to establish operations in Australia’, Ross said.
Simone Desmarchelier Senior Trade Commissioner, Italy and Cyprus, and Consul-General, Milan Simone leads a team of seven whose work principally involves promoting Australia as a destination for productive foreign direct investment for Italian companies and a study destination for Italian students.
Simone was previously a corporate lawyer specialising in private equity, mergers and acquisitions and practising in Australia for local and foreign clients. ‘Then I moved to London to be an investment banker at Lazard and Deutsche banks, specialising in investor relations and fundraising for European alternative asset funds.’
Simone said her experience as an investment banker has been useful in her work at Austrade because her exposure to European countries has helped her understand the different work and meeting styles in Europe and Australia.
‘I also have significant experience in the infrastructure industry and this has been of great help in bonding with investors in the construction sector in Italy and in Western Europe where I am team leader’, she said.
Simone is bilingual in Italian and English, speaks fluent French and Spanish and has a good knowledge of Japanese.
AUSTRADE’S INVESTMENT EXPERTISE
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stakeholders to attract and facilitate investment into Australia. Meet some of them…
Richard Leather Senior Trade and Investment Commissioner, North America, New York Richard leads a team located in many of the major commercial centres in North America, including San Francisco, Chicago, Washington DC, NewYork City, and Vancouver. The principal focus is on driving productive foreign direct investment into Australia, through the development of senior management-level relationships with a range of corporations in priority areas. ‘My team then uses these relationships to identify and communicate emerging business trends to positively impact the business opportunities for Australian exporters and US investors’, Richard said.
Prior to joining Austrade, Richard held senior executive management roles with a leading Australian investment bank, focusing on investor relations and capital-raising for Australian and international clients. Earlier in his career, he was a journalist and corporate communications consultant at some of Australia’s largest listed companies.
‘My work at the investment bank combined a variety of skills including the ability to manage and grow relationships with a complex and diverse set of stakeholders’, he said.
Nicola Watkinson Senior Trade and Investment Commissioner, South Asia, New Delhi Nicola leads a team of around 50, and has responsibility for Austrade’s operations in India, Sri Lanka, Bangladesh, Nepal and Pakistan. She has considerable investment expertise, having previously worked as Austrade’s Senior Trade and Investment Commissioner and Consul-General in Frankfurt and with Invest Australia before it was integrated into Austrade in 2008.
Nicola has 15 years of international business development experience in both private and public sector organisations, where she worked on high-level strategy development and operational management.
Nicola focuses on helping Australian companies understand how to be successful in India. ‘South Asia is a complex set of diverse and highly regionalised markets. Having the right market intelligence, understanding the culture, and knowing how to pick the right partner, negotiate effectively and do business locally are critical—and this is where Austrade adds value for Australian businesses’, she said.
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PROMOTING AUSTRALIA INTERNATIONALLY
Austrade online
Austrade’s website, www.austrade.gov.au, has continued to receive praise for its contemporary design. In 2013-14, there were approximately 1.6 million visits to the website and more than 5 million page views.
During the year, Austrade undertook a significant upgrade of its online information for potential investors about growth opportunities in Australia in the agribusiness and food, resources and energy, major infrastructure, tourism infrastructure and advanced manufacturing, services and technologies sectors.
Following the transfer of the tourism programme to Austrade in October 2013, a key addition to the website was the tourism-related content, including the latest policies, programmes and research for Australia’s tourism industry.
Austrade also produced several industry capability reports, highlighting 22 Australian industries, which were added to the website. The green buildings report and the mining equipment technology services report were displayed in a digital multimedia format and received more than 16,000 page views.
Other additions to the Austrade website in 2013-14 included a panel on the home page highlighting key insights and opportunities to all stakeholders, and an expression of interest form for Australian business leaders to accompany ministers on international business delegations.
Austrade published 123 Investor Update articles on its website and 149 promotional videos on the Austrade YouTube channel.
Screenshot of an online industry capability report on the agribusiness and food sector in Australia on Austrade’s website.
Brand Australia
Austrade continued to encourage the use of the Australia Unlimited brand by government agencies and industry as part of international marketing activities and at major international events. The brand featured prominently at the Australia Week in China events in April 2014, as well as the Prime Minister’s ‘Australia-Open for Business’ trip to North Asia, also in April 2014. It is used by Austrade, the Department of Foreign Affairs and Trade, the Defence Materiel Organisation and the Commonwealth Scientific and Industrial Research Organisation and is trademarked in most cases until 2020-21.
More than 80 new stories profiling Australians and Australian achievements were made available on digital platforms, including www.australiaunlimited.
com, bringing the total number of stories to more than 450 since the programme’s content strategy was first implemented in 2011. These articles have profiled around 240 innovative Australian companies and many more research institutions, universities, charities, foundations, associations and organisations. Social media campaigns on Twitter, Facebook and LinkedIn, including a campaign celebrating Australian excellence in
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food and wine for Australia Day, have helped to promote Australia’s capability and reputation. In 2013-14, the total number of Austrade social media followers increased to more than 12,000.
The Brand Australia programme’s assets, including the visual brand mark and digital publishing platforms, aim to promote Australia’s intellectual, commercial and creative credentials to enhance its international reputation and attract international buyers, investors, visitors and students.
Media and communications
Austrade’s media team works to maximise the role that traditional and new media can play in promoting Australian businesses overseas, Australia’s attractiveness as a destination for productive foreign direct investment, and Australia’s education and tourism credentials. In April 2014, at the Australia Week in China events, Austrade worked with a local public relations agency to secure more than 182 high-quality news items in the Chinese media, including interviews with the Hon Andrew Robb AO MP, Minister for Trade and Investment, in Bloomberg Businessweek and on China Central Television.
The media team provides Austrade with editorial and media management services. It also provides a daily media clipping service to Austrade executives and Mr Robb’s office. The team coordinates requests from the media, manages media issues and supports Austrade’s international network in its promotion and marketing campaigns offshore. In 2013-14, the team drafted 58 speeches for the Minister for Trade and Investment and Austrade’s CEO, and 44 media releases.
Social media assists Austrade to build brand equity and disseminate information about Australian capabilities to targeted international
audiences. Austrade used Twitter in Japan to promote the adoption of Australian oyster seed and technology as part of the initiative to rebuild the oyster industry in Tohoku. For more information on this initiative, see page 41.
Austrade social media also figured prominently in the promotion of Australia Week in China, through Twitter and the Chinese microblogging platform, Weibo. Social media channels were targeted to reach Australian business and media users, as well as Chinese audiences. The media team also provided editorial assistance with speeches and media releases required throughout the series of events.
The Hon Andrew Robb AO MP, Minister for Trade and Investment, in a screenshot of a tweet from Austrade’s Twitter channel during the Australia Week in China events, April 2014.
Australian Trade Commission Annual Report 2013-14 72
Nick Nichles General Manager, Marketing, Online and Business Practice, Sydney
Nick leads a team of 52, and is responsible for three distinct areas of Austrade’s operations. In the
marketing area, his task is to ensure that Austrade promotes Australia’s capabilities professionally and consistently across its network. Nick’s online team is focused on articulating and implementing an online strategy. This means maximising the use of the data and technology Austrade has available to it in order to deliver relevant services and information to its stakeholders, while lowering costs in the process. Austrade’s business practice work ‘ensures that the organisation has an agreed way of working and maintains a high standard of service’, Nick said.
Before joining Austrade, Nick gained considerable private sector experience. He was responsible for the marketing in Australia of world-famous food retailer McDonald’s Corporation, as well as pay television operator Foxtel. He was also the CEO of NSW Lotteries and led that organisation from being state-owned through to privatisation. Nick said, ‘Austrade has a diverse range of clients and target audiences and my experience helps us to understand those audiences’ desires andmotivations’.
51st Australian Export Awards
The annual Australian Export Awards recognise the international business success achieved by Australia’s export community. The Australian Export Awards is presented by Austrade and the Australian Chamber of Commerce and Industry and is one of the longest-running business awards programmes in Australia.
Seventy-six finalists were honoured at the 51st national awards ceremony held in November 2013 in Melbourne. The ceremony was hosted by the Hon Andrew Robb AO MP, Minister for Trade and Investment, with special guest the Hon Tony Abbott MP, Prime Minister of Australia.
The finalists, who progressed from the eight state and territory export award programmes, were responsible for more than $9 billion in export sales in 2012-13, and provided employment to more than 22,000 people.
On the same day as the awards ceremony, the national finalists attended a masterclass on ‘weightless commerce’ and the supply of information and ideas rather than trade in physical goods. The seminar featured a discussion on the opportunities offered by online skills sourcing, data analytics and digital brand creation. This was followed by a networking lunch attended by finalists and sponsors.
In 2013, the Commonwealth Bank marked 26 years as a sponsor of the Australian Export Awards, the Export Finance and Insurance Corporation marked 20 years, and the Australian Made Campaign celebrated 14 years of support.
The finalist companies were vying for 12 national awards across a range of industry sectors, including new award categories such as health
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and biotechnology, and environmental solutions, as well as traditional categories such as agribusiness and manufacturing.
RightShip, a Victorian company specialising in marine risk management systems, was recognised as the overall winner and recipient of the Prime Minister’s Australian Exporter of the Year Award for 2013.
The 51st Australian Export Awards winners were:
⺠Prime Minister’s Australian Exporter of the Year Award RightShip (VIC)
⺠Agribusiness Award Walnuts Australia (TAS)
⺠Business Services Award RightShip (VIC)
⺠Creative Industries Award Animal Logic (NSW)
⺠Education and Training Award Monash University (VIC)
⺠Environmental Solutions Award Ecotech (VIC)
⺠Health and Biotechnology Award Aspen Medical (ACT)
⺠Information and Communication Technology Award Leadbolt (NSW)
⺠Infrastructure and Construction Award Cardno (QLD)
⺠Manufacturing Award RÃDE Microphones (NSW)
⺠Minerals and Energy Award Otraco (WA)
⺠Regional Exporter Award Tasmanian Quality Meats (TAS)
⺠Small Business Award SWA Water Australia (NSW)
L-R: The Hon Andrew Robb AO MP, Minister for Trade and Investment; Warwick Norman, CEO, RightShip; and the Hon Tony Abbott MP, Prime Minister of Australia, at the 51st Australian Export Awards in Melbourne, November 2013.
The Hon Tony Abbott MP, Prime Minister of Australia, speaking at the 51st Australian Export Awards in Melbourne, November 2013.
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RightShip ⺠Prime Minister’s Australian Exporter of the Year, 2013
⺠Business Services Award
Owned equally by BHP Billiton, Rio Tinto Shipping and Cargill Ocean Transport, RightShip is a ship vetting company. It was set up in 2001 to respond to a problem recognised across the shipping industry—a lack of accessible, transparent data to enable shippers and charterers around the world to identify and avoid substandard vessels. Ship vetting both identifies and analyses a ship, enabling RightShip’s customers to remove substandard vessels from their supply chain. This minimises the risk of marine incidents, loss of lives, loss of cargo and environmental damage.
RightShip’s Ship Vetting Information System is accessible online and contains data on more than 120,000 maritime companies. The system uses a sophisticated algorithm to analyse
more than 50 risk factors that have a proven link to incidents and casualties. The company currently evaluates around 70,000 vessels, with 1,158 removed from their customers’ supply chains last year.
Today, RightShip has customers in 40countries, undertakes ship inspections in 114 countries, and generates 84 per cent of its revenue outside Australia.
RightShip was named the Prime Minister’s Australian Exporter of the Year for 2013 at the 51st Australian Export Awards in Melbourne, November 2013. Image used with permission of RightShip.
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Aspen Medical ⺠Health and Biotechnology Award
Australian-owned healthcare solutions provider Aspen Medical delivers quality healthcare in complex, remote and difficult environments. The company has clients around the world in military, aviation, resources and government health services.
During the past 10 years, Aspen Medical has completed more than 150,000 medical treatments in various international locations. With an in-depth understanding of austere healthcare requirements, the company is able to deploy services at short notice. For example, a 100-bed mobile hospital can be assembled onsite and be operational within 72 hours.
Aspen Medical customises its product for each client and each market. Potential export market opportunities are subject to rigorous critical analysis. Key risks are identified in a number of areas including personnel, security, resource availability and political concerns.
In 2004, the company began providing primary healthcare and surgery clients to the Australian Federal Police and Defence personnel in the Solomon Islands. Expansion into other parts of the world quickly followed, including to Canada, the Middle East, Papua New Guinea, Timor-Leste, the United Kingdom and the United States.
In 2013, Aspen delivered first-line emergency response training to every Australian Defence Force member deploying to Afghanistan and developed an innovative modular medical solution for the United Arab Emirates military.
Aspen Medical was the winner of the Health and Biotechnology Award at the 51st Australian Export Awards in Melbourne, November 2013. Image used with permission of Aspen Medical.
Australian Trade Commission Annual Report 2013-14 76
CONTRIBUTING TO WHOLE-OF-GOVERNMENT POLICYDEVELOPMENT During 2013-14, Austrade continued to contribute a trade, investment and education perspective to whole-of-government policy processes of importance to exporters, education institutions and investors. Austrade’s unique perspective gained from its international market presence,
economic research and analysis, firm-level commercial knowledge, and active partnership arrangements also continued to inform its policy advice to government on both tourism and economic matters more generally.
The work of Austrade’s state and territory directors Austrade’s state and territory directors play a pivotal role in coordinating and facilitating Austrade’s relationship with key partner organisations in each capital city, with a particular focus on state and territory governments.
During the year, the state and territory directors’ unit facilitated the exchange of Austrade’s international market plans with state and territory counterparts in priority markets to identify opportunities for cooperation, reduce duplication and ensure consistent messaging. State and territory directors regularly presented at public outreach events and senior-level roundtables, highlighting industry or market opportunities arising from initiatives like the free trade agreement with Korea and the Japan-Australia Economic Partnership Agreement. The unit also provided advice to the Senior Officials Trade and Investment Group, the National Investment Advisory Board and the National Trade Development Working Group, drawing on its strong local networks and in-depth understanding of the political and economic environments in the states and territories.
In Queensland, the Northern Territory and Western Australia, Austrade’s state and territory directors played a key role in providing insights and information for the Northern Australia White Paper, working closely with government and industry bodies to ensure Austrade’s trade and investment work in relation to Northern Australia is relevant.
Austrade’s state and territory directors worked closely with their counterparts in the Department of Foreign Affairs and Trade on joint economic diplomacy initiatives, often involving joint presentations by visiting heads of mission and Austrade’s senior trade commissioners. They also worked closely with premiers’, chief ministers’ and other senior ministerial offices on the coordination of official overseas visits.
State and territory directors strengthened relations with the major chambers of commerce in each state and territory; with bilateral chambers such as AmCham; the Australia-China, Australia-India and Australia- Israel chambers of commerce; with trade and investment promotion agencies, including the Japan External Trade Organization, the Korea Trade-Investment Promotion Agency, and UK Trade & Investment; and with professional
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In October 2013, Austrade took responsibility for strengthening Australia’s tourism industry when it gained the tourism function from the former Department of Resources, Energy and Tourism. Austrade now works across government on delivering the Tourism 2020 strategy (see page 105).
In 2013-14, Austrade worked with the Department of Foreign Affairs and Trade, the Department of the Prime Minister and Cabinet, and other government agencies, including from the states and territories, on a number of significant policy processes and forums, and continued to work closely with the Export Finance and Insurance Corporation.
services firms and banks that assist Australian businesses around the country to realise their international commercial goals.
In 2013-14, state and territory directors facilitated the short-term secondments of four of Austrade’s overseas-engaged staff to major partner agencies. These secondments were intended to strengthen the partners’ understanding of international markets and to deepen Austrade’s understanding of the host organisations, their industries and international aspirations. The secondees were:
⺠Siddharth Vishwanathan, Austrade Mumbai, to the Chamber of Commerce and Industry of Western Australia in Perth
⺠Sangeetha Krishnamoorthy, Austrade Hyderabad, to the Department for Manufacturing, Innovation, Trade, Resources and Energy in Adelaide
⺠Yuling Zhang, Austrade Guangzhou, to Meat & Livestock Australia in Sydney
⺠Sagra Clorio, Austrade Mexico City, to the Australian Industry Group in Melbourne.
Yuling Zhang said, ‘In two months I have already learnt so much about the Australian red meat industry and Meat & Livestock Australia’s focus and strategy for international markets. I am already sharing this with my
colleagues and it will be invaluable for Austrade’s partnership with Meat & Livestock Australia in promoting Australian red meat in China.’
In March 2014, Austrade’s state directors in Queensland (also responsible for the Northern Territory), New South Wales (also responsible for the ACT), Victoria (also responsible for Tasmania), South Australia and Western Australia participated in a series of forums on opportunities and insights in Australian exports, global supply chains and overseas investment. The events were organised and sponsored by the Export Finance and Insurance Corporation and focused on small and medium-sized enterprises.
L-R: David Lawson, State Director, NSW and ACT, Austrade; Geoff Cox, Executive Director, Global Trade Finance, Commonwealth Bank; Rod Sawyers, Managing Director, Bronx International Pty Ltd; Raj Deepan, Partner, Grant Thornton Pty Ltd; Robert Dravers, Director SME, Export Finance and Insurance Corporation (EFIC); and Michael Pascoe, master of ceremonies, at the EFIC-organised business forum in Sydney, March 2014.
Australian Trade Commission Annual Report 2013-14 78
In March 2014, Austrade, in partnership with the Export Finance and Insurance Corporation, the Export Council of Australia and the University of Sydney, launched the findings from the Australia’s International Business Survey: 2014 report. The survey was one of the most comprehensive investigations into Australian international business activity in more than a decade.
The survey reflects the opinions of more than 1,600 Australian businesses from diverse industries operating in more than 120 overseas markets. Its findings provide an evidence base that will help policymakers to understand how Australia’s international businesses engage with the global economy. It identifies the markets these businesses operate in and the barriers in those markets, the markets they are targeting for future business, and the domestic factors that affect their international competitiveness.
In addition to holding briefings for businesses, business associations and state governments, Austrade and the Export Finance and Insurance Corporation presented the survey results to departments and industry, including the Department of Foreign Affairs and Trade, the Department of the Prime Minister and Cabinet, the Treasury and the Department of Industry. For information on the survey results, see page 20.
Austrade’s support for new policy initiatives
During 2013-14, Austrade supported numerous policy processes by sharing with agencies its in-depth knowledge of the challenges and opportunities Australian businesses and industry sectors face in developing international markets. These policy processes included the development of the industry innovation precincts and the reviews of the Victorian and South Australian economies.
In addition, five Austrade staff members were seconded to the Department of the Prime Minister and Cabinet at various times during 2013-14 to help progress the Government’s priorities, including development of the Industry Investment and Competitiveness Agenda.
Austrade has been working with the Northern Australia White Paper taskforce to identify ways to unlock the region’s commercial potential, and address barriers by highlighting actions to assist Northern Australia’s trade, investment, international education and tourism performance. With competitive advantages in the resource and energy, agrifood, tourism, tropical health and medicine, and education sectors, as well as proximity to the growing Asian markets where Austrade operates, Austrade’s sectoral and market knowledge makes a valuable contribution to that policy development, ultimately helping to overcome the barriers to realising the commercial opportunities that lie in Northern Australia.
In 2014, Austrade also provided information for the Agricultural Competitiveness White Paper about attracting foreign direct investment, assisting food and agribusiness services and technology exporters, and developing and maintaining international markets.
Working with state and territory governments
In February 2014, the Hon Andrew Robb AO MP, Minister for Trade and Investment, hosted a meeting in Canberra with state and territory trade and investment ministers to discuss a range of cross-jurisdictional trade and investment issues. At the meeting, the ministers agreed to work together to help Australian businesses realise the benefits of the Korea-Australia Free Trade Agreement. They endorsed the five national investment priorities and the roles of the team of senior investment specialists to be formed within
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Austrade by the first half of 2014-15. They also noted in-principle support for a ‘team Australia’ approach to major international events. A second Trade and Investment Ministers Meeting is scheduled for September 2014.
The Senior Officials Trade and Investment Group implements the decisions from the Trade and Investment Ministers Meeting. The group aims to develop Australia’s trade and investment outcomes by improving coordination between the Australian Government and state and territory governments—the ‘team Australia’ approach. It provides strategic direction to the operationally focused National Investment Advisory Board and the National Trade Development Working Group.
Austrade chairs and provides the secretariat function for the National Investment Advisory Board (see page 60).
Austrade also chairs and delivers the secretariat function for the National Trade Development Working Group. The group’s objectives are to coordinate Commonwealth, state and territory international trade activities, and share knowledge and intelligence on trade craft, trade opportunities, market initiatives and major projects.
Attached agency agreements
Austrade administered a number of service-level agreements for the provision of property and administrative support in overseas locations for staff from attached Australian Government agencies, including the Department of Foreign Affairs and Trade, AusFilm, the Australian Federal Police, the Department of Education, the Department of Agriculture, and the Department of Immigration and Border Protection. In most cases, these agreements were in place in Austrade-managed consulates-general.
In some locations, Austrade also employed state government specialist staff to undertake mutually agreed activities to support the relevant state’s trade, investment and education promotion work in that market. These agreements include:
⺠South Australian Department of Manufacturing, Innovation, Trade, Resources and Energy—a business development manager in Hong Kong and senior investment managers in Shanghai and Mumbai
⺠Trade and Investment Queensland—a business development manager in Ho Chi Minh City (until 30 June 2014)
⺠Tasmanian Department of Economic Development, Tourism and the Arts—a senior investment manager in Shanghai
⺠Victorian Department of State Development, Business and Innovation—an education services manager in Bogota.
Austrade delivers services to, and works with, these agencies and departments overseas to ensure that government efforts, both Commonwealth and state, are coordinated and targeted.
Parliamentary inquiries and briefings
During the year, Austrade appeared before, or provided submissions to, the following committees or inquiries:
⺠New South Wales Legislative Council inquiry into tourism in local communities conducted by the General Purpose Standing Committee No. 3—the Tourism Division provided a submission in July 2013 when it was part of the former Department of Resources, Energy and Tourism
⺠Inquiry into the Development of Northern Australia—Austrade provided a joint submission with the Department of Foreign Affairs and
Australian Trade Commission Annual Report 2013-14 80
Trade to the Parliament’s Northern Australia Committee, and testified before the Joint Select Committee on Northern Australia in March 2014
⺠Joint Standing Committee on Foreign Affairs, Defence and Trade inquiry into Australia’s trade and investment relationships with countries of the Middle East—Austrade provided a joint submission with the Department of Foreign Affairs and Trade and briefed members of the committee in May 2014
⺠Joint Standing Committee on Foreign Affairs, Defence and Trade inquiry into the role of the private sector in promoting economic growth and reducing poverty in the Indo-Pacific region—Austrade contributed to the Department of Foreign Affairs and Trade’s submission to the committee in May 2014
⺠Victorian Parliament Rural and Regional Joint Investigatory Committee inquiry into the opportunities for increasing exports of goods and services from regional Victoria—Austrade, along with the Department of Foreign Affairs and Trade, met with representatives of the committee in June 2014. Austrade provided advice on how its services and programmes, particularly across trade, inward investment and tourism, can support export development in regional Victoria.
Services to government
Austrade’s CEO reports to the minister responsible for the trade portfolio. From 1 July 2013 to 18 September 2014, the Hon Richard Marles MP held the position. The Hon Andrew Robb AO MP was sworn in as Minister for Trade and Investment on 18 September 2014 and held the position for the remainder of the reporting period.
Administrative Arrangements Orders issued after the 2013 election abolished the Department of Resources, Energy and Tourism and transferred responsibility for tourism to the Foreign Affairs and Trade portfolio. As a result, responsibility for tourism policy, programmes and research transferred to Austrade. Until the election, the ministers responsible for the tourism function were the Hon Gary Gray AO MP, Minister for Tourism, and Senator the Hon Don Farrell, Minister Assisting for Tourism. Tourism Australia remains a statutory authority, now located within the Foreign Affairs and Trade portfolio and reporting to the Minister for Trade and Investment.
Austrade provided services to the Minister for Trade and Investment throughout the reporting year, including through the provision of a departmental liaison officer located in the Minister’s office.
Austrade reported on its progress in achieving the Government’s objectives through regular reports and briefing material. Austrade officers also met with the Minister, as well as his office staff, to give context to written briefs and discuss specific issues when required. In 2013-14, Austrade produced 143 written briefs and 158 submissions and prepared responses to 388 items of written correspondence, with a further 212 items of correspondence processed for information. These figures include briefs, submissions and correspondence for the Tourism Division that were produced after the 2013 election. Before the election, the Tourism Division, under the former Department of Resources, Energy and Tourism, produced 44 written briefs and responded to 54 items of written correspondence, with a further 30 items of correspondence processed for information.
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Supporting ministers abroad
In 2013-14, Austrade continued to provide support for ministerial visits overseas, including visits by the Prime Minister, the Minister for Trade and Investment, the Minister for Foreign Affairs, the Parliamentary Secretary to the Prime Minister, and other ministers. Examples of this work are highlighted below.
In June 2014, Austrade provided support for an official visit by the Hon Tony Abbott MP, Prime Minister of Australia, the Hon Andrew Robb AO MP, Minister for Trade and Investment, and an accompanying senior business delegation to Canada and the United States.
During the visit, Mr Robb attended a number of functions and roundtable events promoting the strengths of Australia’s economy and opportunities for foreign investment in infrastructure and other priority sectors.
Mr Robb also delivered a keynote address to the Munk School of Global Affairs at the University of Toronto, participated in panel discussions at the Center for Energy Studies at Rice University in Houston, and visited the Parsons Brinckerhoff subway infrastructure project in New York and the leading-edge Schlumberger Technology Center in Houston.
The Hon Tony Abbott MP, Prime Minister of Australia, officially opening the day’s trading at the New York Stock Exchange with Tom Farley, New York Stock Exchange Group President, as part of his visit to North America, which was supported by Austrade, June 2014.
In April 2014, Austrade provided support for an official visit by Mr Abbott and Mr Robb to Korea, Japan and China, where they were joined by the Hon Bruce Billson MP, Minister for Small Business, the Hon Josh Frydenberg MP, Parliamentary Secretary to the Prime Minister, five state premiers and the Chief Minister of the ACT, and a delegation of more than 700 Australian businesspeople.
During the visit, Australia concluded negotiations on the Japan-Australia Economic Partnership Agreement, opening the way for increased two-way trade with Australia’s second-largest trading partner.
In Korea, Mr Robb and his South Korean counterpart, His Excellency Yoon Sang-jick, Minister of Trade, Industry and Energy, formally signed the Korea-Australia Free Trade Agreement in Seoul.
Australian Trade Commission Annual Report 2013-14 82
In China, Mr Robb led Australia’s largest-ever trade delegation comprising more than 700 businesspeople from a range of industries. Mr Robb’s visit coincided with Australia Week in China, a series of Austrade-organised events across five Chinese cities designed to enhance Australia’s engagement with China in trade, investment, education and tourism. For more information on Australia Week in China, see page 38.
The Hon Andrew Robb AO MP, Minister for Trade and Investment, speaks at a food demonstration during the Australia Week in China events, April 2014.
Mr Robb also visited the United Arab Emirates and Saudi Arabia in April 2014, where he attended the Austrade-delivered Australia Unlimited MENA 2014, the largest Australian promotional campaign hosted in key Middle East and North Africa markets. The campaign demonstrated Australian capabilities in education, agriculture and food, resource and water management, urban development, rail, sports and tourism.
Australia Unlimited MENA 2014 included events in Dubai, Abu Dhabi and Riyadh, as well as associated events in Muscat, Kuwait City and Rabat. This annual campaign builds on the success of the inaugural Australia Unlimited MENA programme held in 2013.
Mr Robb met with senior ministers and major investors from the region, using his visit to advocate for a resumption of negotiations for a free trade agreement with the Gulf Cooperation Council.
Austrade hosted a Future Unlimited booth at the International Exhibition and Conference on Higher Education in Riyadh, also held in April 2014. Mr Robb met with representatives from the 27 Australian universities participating in this major regional event.
Coinciding with Australia Unlimited MENA 2014, Austrade also supported the Council for Australian-Arab Relations to conduct policy seminars in Abu Dhabi and Riyadh on the nexus between food and water. These seminars brought together experts to discuss issues that are a challenge to Australia and the region.
Austrade supported Mr Robb’s visit to the Philippines in February 2014, with the Hon Julie Bishop MP, Minister for Foreign Affairs, for the fourth Philippines-Australia Ministerial Meeting. At that meeting, ministers agreed to cooperate to increase bilateral trade and investment, undertook to promote greater use of the ASEAN-Australia- New Zealand Free Trade Agreement, and to share expertise to support the development of responsible mining and offshore acreage release.
Mr Robb was accompanied by a delegation of senior executives from 20 Australian companies in the engineering and infrastructure, resources, food and agribusiness, education and services sectors.
Mr Robb also met with senior government leaders, including His Excellency Benigno S Aquino III, President of the Philippines, and addressed an infrastructure business forum at which typhoon reconstruction was discussed. Ms Bishop announced further development assistance for public-private partnership projects. Mr Robb
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also addressed the Makati Business Club, which comprises more than 700 CEOs and senior executives from the largest and most successful corporations in the Philippines.
In January 2014, Austrade supported Mr Robb’s visit to the United States for the G’Day USA programme. Ms Bishop and the Hon Malcolm Turnbull MP, Minister for Communications, also attended a series of events as part of the programme. Events were strategically designed to focus on priority sectors for Australia, including tourism, energy and resources, and investment.
Mr Robb gave keynote addresses at a number of G’Day USA events, including a Tourism Australia summit in Los Angeles and an innovation and digital economy investment event in San Francisco. Alongside the G’Day USA activities, Mr Robb also took part in US-Australia Dialogue events, including presenting at the US-Australia Dialogue on Water and the US-Australia Dialogue: Partners in the Asia-Pacific, both in Los Angeles.
Other official visits supported by Austrade during the year included:
⺠Governor-General—China in October 2013; Myanmar in November 2013
⺠Prime Minister—Indonesia in July and October 2013; Papua New Guinea in March 2014; France in June 2014
⺠Minister for Foreign Affairs—Myanmar in July 2013; Korea and Hong Kong in October 2013; Philippines in December 2013 and February 2014; Malaysia and Vietnam in February 2014; Switzerland in March 2014; France in April 2014
⺠Minister for Trade and Investment—United States in October 2013 (at the Global Services Summit); China and Hong Kong in October 2013; Indonesia in October 2013; North Asia (South Korea, Japan, China) in November 2013; Singapore in December 2013; Switzerland in
January 2014; Japan and Hong Kong in March 2014; Germany and France in May 2014; Germany in June 2014
⺠Minister for Immigration and Border Protection— Malaysia in October 2013
⺠Minister for Industry—China in November 2013 ⺠Minister for Communications—United States in January 2014
⺠Minister for Small Business—China in April 2014 ⺠Parliamentary Secretary for Foreign Affairs— Vietnam in October 2013.
Austrade supported a number of ministerial visits to France in 2014, including organising a high-level business reception as part of the visit by the Hon Tony Abbott MP, Prime Minister of Australia, in June 2014 (pictured). In conjunction with France’s major business council, MEDEF, the ‘Australia-Open for Business’ reception attracted 70 senior executives from France’s leading industries. Austrade also supported a visit by the Hon Andrew Robb AO MP, Minister for Trade and Investment, while he was in Paris for bilateral and OECD ministerial meetings in May 2014; and by the Hon Julie Bishop MP, Minister for Foreign Affairs, in April 2014.
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Visits by foreign government representatives
As well as providing support for overseas visits by Australian ministers, Austrade continued to support visits by a diverse range of foreign government delegations throughout the year. These included the visits of:
⺠Dr Tony Tan Keng Yam, President of Singapore, in June 2014. Austrade ensured high-level business representation at a State lunch hosted by the Governor-General
⺠Francisco N González Diáz, Chief Executive of ProMexico (Mexico’s trade and investment promotion agency), and a business delegation in June 2014
⺠Yi Lianhong, Member of the Standing Committee of the Hunan Provincial Committee and Party Secretary of the Changsha Municipal Committee, in May 2014. Austrade signed a memorandum of understanding with the Changsha Municipal Government on trade, investment and education collaboration
⺠ASEAN Secretary-General Le Luong Minh in March 2014. Austrade attended a roundtable and briefed Secretary-General Minh on Austrade’s activities and engagement with ASEAN countries
⺠Mongolian Foreign Minister Luvsanvandan Bold in March 2014. Austrade attended a dinner hosted by the Hon Julie Bishop MP, Minister for Foreign Affairs, and introduced a number of Australian companies with interests in Mongolia
⺠Pakistan agriculture delegation supported by the Australian Centre for International Agricultural Research in February 2014
⺠Evgeny Popov, Director, Asia and Africa Department, Ministry of Economic Development of the Russian Federation, and delegation in February 2014
⺠Dr Joseph Wu, Taiwan Policy Director to opposition Democratic Progressive Party, in December 2013
⺠His Excellency Boediono, Vice President of the Republic of Indonesia, His Excellency Mahendra Siregar, Chairman of the Indonesia Investment Coordinating Board and a business delegation to Australia in November 2013. Austrade and Asialink organised a business forum at which investment opportunities in Indonesia were discussed, in addition to meetings with institutional funds and prominent investors from Australia
⺠His Excellency Vayalar Ravi, Minister of Overseas Indian Affairs, and a senior business delegation in November 2013, for the Pravasi Bharatiya Divas (Overseas Indians Day) convention in Sydney
⺠Daw Aung San Suu Kyi, Chairperson of the National League for Democracy in Myanmar, in November 2013. Austrade organised a business roundtable with a small group of organisations with interests and potential investments in Myanmar
⺠Indian Ocean Rim Association Business Forum, including ministers and officials from 20 member states in October 2013
⺠Nepal Hydro-electricity Investment and Development Company delegation in September 2013.
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Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments.
PROGRAMME 1.2: TRADE DEVELOPMENT SCHEMES—EXPORT MARKET DEVELOPMENT GRANTS
Objective Provide an incentive for businesses to enter into export and grow to become sustainable exporters.
Deliverables and key performance indicators Tables 4 and 5 summarise the results for programme 1.2 against the deliverable and key performance indicators set out in Austrade’s 2013-14 Portfolio Budget Statements.
Table 4: Summary of results for programme 1.2 deliverable
Deliverable Achieved
Administration of the Export Market Development Grants scheme, providing partial reimbursem*nt for expenditure on eligible promotion activities.
Table 5: Summary of results for programme 1.2 key performance indicators
Key performance indicator Achieved Outcome
Number of grant applications. The number of grant applications received
in 2013-14 was 2,715. This is fewer than the 3,045 received in 2012-13, and lower than the budgeted target of 3,000-3,500 —seepage 87.
Number of grant recipients. The number of grant recipients in 2013-14
was 2,445.(a) This is fewer than the 2,757 received in 2012-13, and lower than the budgeted target of 2,800-3,300 —see page 88.
(a) I ncludes mainly 2012-13 grant year recipients, but also some recipients carried over from previous grant years.
OUTCOME 1
Australian Trade Commission Annual Report 2013-14 86
ADMINISTERING THE EXPORT MARKET DEVELOPMENT GRANTSSCHEME The Export Market Development Grants (EMDG) scheme encourages small and medium-sized Australian businesses to enter into and develop export markets. To be eligible for a grant in 2013-14, applicants must have incurred more than $20,000 in eligible expenses, which businesses accessing the scheme for the first time may incur over two years. Almost all grants are paid the year after applicants’ export expenditure has been incurred (and therefore the term ‘grant year’ refers to the year in which the expenditure is incurred).
Export Market Development Grants Amendment Bill 2014
The Export Market Development Grants Amendment Bill 2014 was passed by both Houses of Parliament in March 2014. The Bill aligned the EMDG scheme’s rules with the revised level of scheme funding and also contained technical and simplification measures. The Bill provided for the following changes to the Export Market Development Grants Act 1997:
⺠an increase in funding for the EMDG scheme by $50 million over four years, commencing in 2014-15
⺠an increase in the maximum number of grants able to be received by an applicant from seven to eight
⺠a reduction in the minimum expenses threshold required to be incurred by an applicant from $20,000 to $15,000
⺠a reduction in the $5,000 deduction from the applicant’s provisional grant amount to $2,500
⺠prevention of the payment of grants to applicants engaging an EMDG consultant assessed to be not a fit and proper person
⺠introduction of a mechanism that enables a grant to be paid more quickly if the grant is determined before 1 July following the balance distribution date
⺠introduction of a provision allowing, for the 2013-14 financial year only, the payment of additional expenses above the cap on administration costs from Austrade’s departmental appropriation.
Consultant Quality Incentive Programme
The Export Market Development Grants (Extended Lodgement and Consultant Quality Incentive) Determination 2012 provides the framework for a voluntary system aimed at improving the quality of applications prepared by EMDG consultants. EMDG consultants who have a demonstrated record of lodging at least five accurate applications over the whole preceding lodgement period, and apply to participate in the programme, are granted an extended period of an additional three months for lodging applications for grants.
The determination first applied to EMDG applications lodged in 2013-14 and extends to EMDG applications in future years. In 2013-14, 55 of the 76 eligible EMDG consultants were approved as participants in the programme. The consultants approved under the programme in 2013-14 have been listed on the Austrade website.
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Chunguang Liu Senior Grants Auditor, EMDG scheme, Sydney Chunguang is qualified
in law and international business and his work involves assessing claims under the Export Market Development Grants scheme. Having studied and worked in
China prior to coming to Australia in 2000, Chunguang also advises his colleagues on the Chinese market and related legal issues. ‘I have experience and knowledge in both public and private sectors in China and Australia, and I have a good understanding of public policies and the needs of small to medium-sized enterprises in both markets’, he said.
One of his biggest achievements at Austrade was assisting a business-matching opportunity for Sanitarium Health Foods with Shanghai Hualian Group in 2004, resulting in an immediate export impact. ‘At the last minute, I acted as a translator and facilitator all the way through a demonstration breakfast, bridging both business cultures. At the conclusion, a container-load order was placed by the Shanghai customers on the spot’, he said.
Chunguang also provides risk management services associated with exports to Chinese-speaking markets. He has worked in other areas of Austrade, including Austrade Direct, investment and on past new exporter development programmes. ‘Since I started at Austrade, I’ve provided tailored services in a one-on-one capacity to more than 800 exporters, many of which have grown from tiny companies to sustainable exporters, like the Aussie Bums clothing brand’, he said.
Scheme performance
As a result of a combination of factors, including global trading conditions, the number of EMDG applications received in 2013-14 decreased by 10.8 per cent, with 2,715 grant applicants compared to 3,045 applicants in 2012-13. In the previous year, grant applications had declined by 7.1 per cent.
The scheme’s initial appropriation for 2013-14 was $125.4 million, which was increased to $137.9 million following the release of the Government’s 2013-14 Mid-Year Economic and Fiscal Outlook. This increase delivered on the Government’s 2013 election commitment
to progressively restore funding to the EMDG scheme starting with an initial boost of $50 million over four years.
All grants up to the value of $60,000 were paid immediately after assessment and approval. Applicants who qualified for grants in excess of that amount were paid the remainder of their grants at the end of the financial year. The average value of grant payments for the 2012-13 grant year was $45,708, which was an increase of 6 per cent on average grant payments for the 2011-12 grant year. The total assessed eligible grant demand for the 2012-13 grant year amounted to $106.6 million.
Australian Trade Commission Annual Report 2013-14 88
Table 6 shows a total of 2,445 grants, worth $113.6 million, were paid to EMDG recipients in 2013-14, a reduction of 11.3 per cent in grant numbers and 5.6 per cent in the total value of grant payments compared to 2012-13. The 11.3 per cent reduction in the number of grant recipients follows the reduced demand of 7.9 per cent in grant numbers and 4.1 per cent in grant payments in 2012-13.
A total of 47 grants, worth $3.4 million, were made under the special ‘approved body’ category to businesses such as industry associations and regional tourism bodies, and to firms cooperating in joint venture-style marketing arrangements.
Table 6: Payments to EMDG recipients, 2009-10 to 2013-14
2009-10 2010-11 2011-12 2012-13 2013-14
Variance 2012-13 to 2013-14 (%)
Total grant recipients
4,675 4,306 2,993 2,757 2,445(a) -11.3
Value of grants ($ million)
198.1 143.1 125.6 120.4 113.6(b) -5.6
(a) I ncludes 2,332 recipients for the 2012-13 grant year and 113 recipients carried over from previous grant years.
(b) I ncludes the value of grants for the 2012-13 grant year of $106.6 million plus the value of 113 grants from previous years and supplementary payments to grant recipients from previous years. A total of $113.6 million was paid from the 2013-14 budget.
Although almost all grants are paid the year after applicants’ export promotion expenditure has been incurred (the grant year), in any financial year there will be some additional grants relating to previous grant years. To allow a comparison between the number of recipients and applicants relating to the same grant year, Table 7 provides a profile of grants that were paid in 2013-14 to the 2012-13 grant year applicants only. A comparison with previous years is also provided.
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Table 7: Profile of EMDG applicants and recipients, by grant year, 2008-09 to 2012-13
2008-09 grant year 2009-10 grant year
2010-11 grant year 2011-12 grant year
2012-13 grant year
Variance 2011-12 to 2012-13 (%)
Total grant applicants 5,149 4,585 3,277 3,045 2,715 -11
Assessed eligible grant demand ($ million)
210.1 167 120.2 113.5 106.6 -6
First-time grant applicants
1,718 1,379 867 913 842 -8
Total grant recipients 4,558 4,128 2,874 2,643 2,332 -12
First-time grant recipients
1,347 1,111 662 685 632 -8
Value of grants ($ million)
190.4 130.2 120.2 113.5 106.6 -6
Average grant ($) 41,768 31,531 41,818 42,950 45,708 +6
Median grant ($) 27,828 25,050 28,421 28,182 30,862 +10
Recipients from rural and regionalareas 1,081 1,029 631 562 478 -15
Value of exports generated by grant recipients ($billion)
6.1 4.6 3.2 3.1 2.8 -10
Employees of recipients
131,575 82,465 103,557 85,964 59,227 -31
The average grant paid in 2013-14 to 2012-13 grant year recipients was $45,708 (up 6 per cent) and the median grant was $30,862 (up 10 per cent). The scheme continued to provide strong support to regional and rural Australia, with 478 grants (20 per cent) paid in the 2012-13 grant year to businesses in those areas. While the EMDG scheme supports a range of business types, companies are the dominant category. In the 2012-13 grant year, 91.5 per cent of EMDG recipients were in that category (Table 8).
Australian Trade Commission Annual Report 2013-14 90
Table 8: EMDG recipients by business type, 2012-13 grant year
Business type
Number of recipients Percentage Total grants paid ($ million)
Company incorporated in Australia 2,134 91.5 99.3
Partnership existing under Australian law 67 2.9 2.0
Individual 52 2.2 1.2
Approved body 42 1.8 3.2
Cooperative/association 20 0.9 0.5
Body corporate-public purpose 12 0.5 0.2
Approved joint venture 5 0.2 0.2
Total 2,332 100 106.6
Small exporters continue to be the largest category of EMDG recipients, with 74 per cent of 2012-13 grant year recipients reporting annual income of $5 million or less (Figure 15), 74 per cent of recipients reporting fewer than 20 employees (Figure 16) and 76 per cent reporting export earnings of $1 million or less (Figure 17). A breakdown of EMDG recipients by state and territory in the 2012-13 grant year is shown in Figure 18 and Table 9.
Figure 15: EMDG recipients by annual income, 2012-13 grant year
>$10m-$20m 7.6%
Up to and
including $0.5m 26.4%
>$0.5m-$2m 27.8%
>$20m 6.5%
>$5m-$10m 11.9%
>$2m-$5m 19.8%
Figure 16: EMDG recipients by number of employees, 2012-13 grant year
100+ 3.5%
0-4
32.2%
5-19 41.8%
50-99 6.9%
20-49 15.6%
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Figure 17: EMDG recipients by annual export earnings, 2012-13 grant year
>$10m-$20m 1.2%
Nil
16.3%
>$20m 0.8%
Up to and including $1m 59.6%
>$5m-$10m 3.5%
>$1m-$5m 18.6%
Figure 18: EMDG recipients by state and territory, 2012-13 grant year
WA 8.1%
NSW 40.7%
NT 0.6%
ACT 1.2%
TAS 1.6%
SA 6.4%
VIC 27.7%
QLD 13.8%
Note: Figures do not total 100 per cent due to rounding.
Table 9: EMDG recipients by state and territory, 2011-12 and 2012-13 grant years
State/territory 2011-12 grant year 2012-13 grant year
Recipients Payments ($ million) Recipients Payments ($ million)
NSW 1,083 52.5 949 49.3
VIC 669 28.5 645 29.2
QLD 370 12.4 322 11.4
WA 241 9.8 188 7.9
SA 195 7.2 149 5.7
TAS 44 1.4 37 1.3
ACT 27 1.4 29 1.5
NT 14 0.3 13 0.4
National 2,643 113.5 2,332 106.6
Note: Some figures have been rounded.
By broad industry classification, the majority of EMDG recipients (65 per cent) in the 2012-13 grant year were in service industries, with a further 30 per cent in manufacturing and 5 per cent in the primary sector (Figure 19). Education and culture, ICT services, and professional, scientific and technical services dominated among services recipients.
Australian Trade Commission Annual Report 2013-14 92
Figure 19: EMDG recipients by industry, 2012-13 grant year
5
10
15
20
Recipients (%)
Primary
5.2%
Food and beverage manufacturing
5.4%
Machinery and equipment manufacturing
7.5%
Other
manufacturing
16.5%
Tourism and related industries
9.3%
Professional, scientiâc and technical services
11.9%
ICT
services
12.1%
Education and culture
15.3%
Other services
16.8%
Primary Manufacturing Services
The principal market targeted by EMDG recipients continued to be the United States, with 58.6 per cent of all recipients paid grants for promotion activities which included the United States, followed by the United Kingdom, China, Singapore, Hong Kong and Germany (Figure 20).
The advertising expenditure category was the largest expenditure category as a proportion of total assessed expenditure, followed by marketing visits and overseas representation costs (Figure 21).
Figure 20: Top six countries targeted by EMDG recipients, 2012-13 grant year
200
400
600
800
1,000
1,200
1,400
1,600
Number of recipients
58.6%
United States
34.4%
United Kingdom
29.2%
China
20.8%
Singapore
17.1%
Hong Kong
16%
Germany
Note: Recipients may promote to more than one country.
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Figure 21: EMDG recipients by expenditure category, 2012-13 grant year
25
50
75
100
Assessed expenditure ($m)
Advertising
Marketing visits Overseas representatives
Promotional events
Marketing consultants
Intellectual property registration
Product samples
Overseas buyers
Communications
33%
27.4%
19.4%
8.8%
5%
3.5%
2.4%
0.3% 0.2%
Scheme funding
The EMDG scheme’s initial appropriation for 2013-14 was $125.4 million, and a further $6.4 million was carried over from previous appropriations for grants carried over from 2012-13. The Government allocated an additional $50 million to the scheme over four years. This allocation provided an additional $12.5 million to the EMDG scheme’s budget for 2013-14, increasing the scheme’s appropriation for 2013-14 to $137.9 million.
For the 2012-13 grant year, 2,332 businesses (100 per cent of all recipients) received their full grant entitlements, and 592 businesses received more than the initial payment ceiling amount of $60,000. Eligible demand for grants was lower than available funds, resulting in an underspend of $23.8 million.
Total cash funding used by the scheme in 2013-14 was $120.9 million, including $6.4 million of funding carried over for grants from 2012-13. Of the funds appropriated in
2013-14, $6.9 million, or 5 per cent of the original appropriation, was spent on administration, as well as an additional $0.4 million paid from departmental appropriations.
Communication and promotional activity
During 2013-14, Austrade’s EMDG communication activities focused on alerting EMDG clients, including grant applicants, consultants and industry bodies, to the legislated changes to the scheme attached to the Export Market Development Grants Amendment Bill 2014. Publicity was also given to the implementation of the EMDG Consultant Quality Incentive Programme, which commenced on 1 July 2013.
EMDG success stories, featured in EMDG newsletters and on Austrade’s website, www.austrade.gov.au, highlight the export successes of applicants and the role the scheme plays in helping Australian businesses become sustainable exporters.
Australian Trade Commission Annual Report 2013-14 94
Mail-outs informed EMDG clients about new developments, and workshops were conducted to improve applicants’ understanding of the scheme.
Administrative performance, risk and fraud control
Austrade processed 2,479 (91.3 per cent) of 2012-13 grant year applications within the 2013-14 financial year.
While striving for faster turnaround and better client service, Austrade maintained its strong focus on risk management and fraud control, which included the following measures:
⺠All applications were subject to appropriate levels of assessment scrutiny, on a risk-managed basis.
⺠Claimed grant amounts processed in 2013-14 were adjusted down by a total of $18.2 million (14 per cent) as a result of Austrade’s assessment activities during the year.
⺠No persons were convicted of fraud against the EMDG scheme during the year. At 30 June 2014, one person was before the court for alleged fraud, and no cases were with the Commonwealth Director of Public Prosecutions for consideration as to whether to commence court proceedings.
During 2013-14, 69 of the applications processed resulted in a request for an internal Austrade review of the initial grant assessment, down from 133 in the previous year. The appeal rate was 2.7 per cent of applications processed.
Details of appeals made by EMDG applicants to the Administrative Appeals Tribunal are shown in Table 10. Seven appeals by EMDG applicants were finalised during 2013-14, comprising three appeals that were successful in part, two appeals that were withdrawn or settled prior to the hearing and two that were decided in Austrade’s favour. Three appeals were in progress at 30 June 2014.
Table 10: Appeals to the Administrative Appeals Tribunal under the EMDG Act in 2013-14
Number of appeals in progress at 1 July 2013 5
Number of appeals received from 1 July 2013 to 30 June 2014 5
Total 10
Appeals withdrawn, finalised or settled prior to hearing
2
Decisions handed down by the Administrative Appeals Tribunal 5
Decisions handed down by the Federal Court 0
Total 7
Number of appeals in progress at 30 June 2014 3
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Two applicants were denied a grant under the ‘not fit and proper’ provisions in section 87AA of the Export Market Development Grants Act 1997. No appeals against a not fit and proper determination were lodged, and one applicant had section 73 of
the Act applied for failing to respond to Austrade’s request for information. At 30 June 2014, seven companies were under review under section 87AA.
Austrade’s support enables Opengear to build its international presence Since 2004, Opengear has been designing, manufacturing and delivering feature-rich, cost-effective, flexible solutions for secure remote infrastructure management. Opengear enables companies to access and manage virtually any electronic device on their network remotely and securely from anywhere, even if the network is down, to improve efficiencies and maximise business continuity.
Opengear has graduated from receiving support from the Export Market Development Grants scheme to a business with $10 million in revenues, branches in the United States and Europe, and 90 per cent export sales. The company, which maintains its executive management and research and development teams in Brisbane, has received seven grants under the scheme.
Company Director Robert Waldie said the grants had enabled Opengear to build an aggressive international trade show presence. ‘We’ve found trade shows to be a key success factor in growing our export business’, he said. ‘In October 2013 alone, Opengear was exhibiting at Interop in New York City, IT Expo
in London and the Data Centre Dynamics show in Melbourne. In November 2013, we had stands at USENIX LISA ’13 in Washington DC, at Cisco Live in Mexico and at Norway’s largest IT fair, ATEA Community.’
Opengear’s Chief Executive Officer, Rick Stevenson, said the scheme’s support had played a key part in funding Opengear’s growth. ‘We are grateful to Austrade for those contributions’, he said. ‘Although the grants have ended, we are at the point now where we are growing profitably with strong positive earnings before interest and tax. More than half our employees are now employed in our overseas offices.’
Opengear’s IM7200—a state-of-the-art infrastructure management solution that streamlines the remote management of networks, servers and power infrastructure in data centres and remote environments. The company received assistance from Austrade through the EMDG scheme. Image used with permission of Opengear.
Australian Trade Commission Annual Report 2013-14 96
Austrade assists Mukti Botanicals to enter overseasmarkets Mukti Botanicals is a manufacturer of luxury skincare products. Established in 2000, the company is now one of Australia’s premier organic brands. Certified with the Organic Food Chain in Australia, Mukti products are formulated on the principles of cosmetic chemistry, aromatherapy, herbalism and organics.
Mukti, the company’s founder, has a background in natural therapies, beauty therapy and holistic medicine. As a therapist with a passion for natural products, Mukti was unable to find a brand that she felt comfortable using on her clients. She furthered her research and study of cosmetic chemistry and went on to create her unique botanicals range.
The company now has distribution networks throughout the Pacific islands, Asia and the United States. Mukti Botanicals has been a client of the Export Market Development Grants scheme since 2005-06, and the payments have assisted with reimbursem*nt for travel to trade fairs and the provision of free samples to potential overseas customers. The payments have also covered part of the cost
of advertising in international magazines such as New Woman, Blitz and Professional Beauty. This promotion has been highly successful, as overseas sales have primarily resulted from marketing via Mukti’s website and through magazine exposure.
‘The scheme has assisted us in offsetting the expenses of entering overseas markets that may have otherwise been prohibitive for a small business. The reimbursem*nt of capital, especially in the early years of funding, has allowed us to attend trade shows, analyse the market, visit our distributors, conduct market visits for training, educational and promotional purposes, and heighten brand awareness’, Mukti said.
Mutki Botanicals produces a broad range of certified organic beauty products, including its age-defence serums. The company received assistance from Austrade through the EMDG scheme. Image used with permission of Mukti Botanicals.
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Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments.
PROGRAMME 1.3: TRADE DEVELOPMENT SCHEMES—ASIAN BUSINESS ENGAGEMENT PLAN
Objective Provide member-based business organisations with support to develop new initiatives to strengthen business linkages between Australia and Asia, and harness commercial opportunities in Asia for small to medium-sized Australian businesses.
Deliverables and key performance indicators Tables 11 and 12 summarise the results for programme 1.3 against the deliverable and key performance indicators set out in Austrade’s 2013-14 Portfolio Budget Statements.
Table 11: Summary of results for programme1.3 deliverable
Deliverable Achieved
Administration of the Asian Business Engagement Plan, providing partial reimbursem*nt for expenditure on eligible business engagement activities.
Table 12: Summary of results for programme 1.3 key performance indicators
Key performance indicator Achieved Outcome
Number of grant applications.
The number of grant applications received in 2013-14 was 95—see page 99.
Number of grant recipients.
The number of grant recipients in 2013-14 was 27 —see page 99.
Note: The Asian Century Business Engagement Plan was renamed the Asian Business Engagement Plan in December 2013.
OUTCOME 1
Australian Trade Commission Annual Report 2013-14 98
ADMINISTERING THE ASIAN BUSINESS ENGAGEMENT PLAN The Asian Business Engagement Plan is an annual, merit-based, competitive grants programme administered by Austrade. The programme aims to assist member-based business organisations and through them, small and medium-sized enterprises, to harness the opportunities emerging in the Asian region.
The key goals of the Asian Business Engagement Plan are to leverage or expand the capability of member-based business groups to:
⺠assist Australian firms to more effectively access in-market business networks and develop new relationships with potential business contacts and partners in Asian countries
⺠identify and secure more opportunities for Australian firms to compete and succeed in regional value chains
⺠enhance and strengthen business links between Australia and Asia
⺠influence corporate Australia to initiate closer engagement with Asia
⺠reinforce and further raise the profile of Australian business capability in the region
⺠increase awareness and understanding of Australia in Asia, and of Asia in Australia.
The plan funds up to 50 per cent of the total cost of an eligible project, with the remaining 50 per cent provided by the applicant. Two streams of funding are available:
⺠Stream A—for one-year projects ranging in cost from $20,000 to $100,000
⺠Steam B—for projects of one to three years’ duration, ranging in cost from $100,000 to $300,000.
The Asian Business Engagement Plan is in its second year, and interest from Australian member-based business organisations remains high. In the lead-up to the 2014-15 grant round, Austrade conducted seven direct marketing campaigns; promoted the programme through its newsletter, Export Update; provided access to information through a dedicated web page; and held information sessions in Melbourne, Sydney and Brisbane.
Organisations that could not attend the information sessions in Melbourne, Sydney and Brisbane were provided with access to a webinar information session, which was recorded and placed on the Austrade website. There was also a dedicated phone line and email account that gave organisations direct access to the Asian Business Engagement Plan secretariat.
2014-15 grant round
In February and March 2014, member-based business organisations were invited to submit expressions of interest in grants for the following year. They were then notified of their eligibility and provided with feedback on their project proposal before proceeding with a full application. Seventy-nine expressions of interest were received.
Applications for the 2014-15 grant round were open in March and April 2014. A total of 68 applications were received from a wide range of Australian member-based business organisations, located in both Australia and Asian markets.
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The Hon Andrew Robb AO MP, Minister for Trade and Investment, announced that funding was allocated to 12 national bodies, three state and territory organisations, one regional organisation and two Australian offshore organisations. They represented a diverse range of sectors, including food and agribusiness, infrastructure, composites, automotive, textiles, education and training, services, medical devices, and sports medicine and physiotherapy. The list of grant recipients can be found at www.austrade.gov.au/abe.
2013-14 grant round—progress of grant recipients’ projects
In the 2013-14 grant round, 95 applications were received. Eighteen Stream A grants and nine Stream B grants were awarded. All grant recipients were offered assistance from Austrade’s offshore network to help deliver their projects.
While the majority of Stream B grant projects will not be completed until 30 June 2016, Stream A projects concluded on 30 June 2014. These grant recipients are currently reviewing their project outcomes and implementing strategies to maximise the opportunities arising from the work undertaken through their grants. These grant projects varied widely in focus, including internships, mentoring, online platforms and portals, new business models to enhance market access, strategic partnerships, business-matching programmes, mechanisms to protect intellectual property, industry analysis, capability development, and strategies to more effectively access and use global value chains.
AustCham Singapore’s Access Asia project Access Asia is an online platform for knowledge-sharing by the Australian business community operating in Asia. It was established by AustCham Singapore with the support of an Asian Business Engagement Plan grant.
The website was developed to enhance the association’s offering to members by improving connectivity and access to its information, and providing a unique first port of call for Australian businesses as they develop markets in Singapore and the Asian region more broadly.
The platform, with enhanced multimedia-sharing technological capabilities, includes more than 50 text and video-based articles
following four key themes—‘The Singapore story’, ‘Your Asian strategy’, ‘Industry insights’ and ‘Your Australian connection’.
These themes were created for companies requiring industry- and country-specific knowledge, as well as a general overview of business confidence, lessons learned and operational tips that cut across a broad range of countries and sectors.
AustCham noted that its members have responded positively to being asked to help with creating content on the site since it gives them the opportunity to share their experience and knowledge of doing business in the region. Through the development of the website, AustCham was able to take advantage of the bourgeoning opportunities as Australian businesses increase their presence in Asia.
Australian Trade Commission Annual Report 2013-14 100
Austmine’s Austral-Asia Smart Mining Network Austmine is the peak industry association of the mining equipment, technology and services (METS) sector. It received a grant under the Asian Business Engagement Plan to establish the Austral-Asia Smart Mining Network. The aim of the network is to link small and medium-sized METS firms with mining opportunities and contacts in Asia.
Christine Gibbs Stewart, the network’s project manager said, ‘We knew the interest in this project would be high for our members and the METS sector in general, as mining investment in Asia is growing’.
‘The Australian METS sector is very active in Asia, and we know there are significant barriers to doing business in the region. One of the key problems faced by Austmine members, particularly smaller companies, is accessing reliable and accurate data on mining opportunities’, she continued.
‘The Asian Business Engagement Plan grant has enabled Austmine to develop an Asian mining projects database, which contains information on more than 3,000 mining projects in the region. Data for the Smart Mining Network has been put together in partnership with a leading market research firm, and it is downloadable and searchable, providing a range of information for planning and business development purposes’, Christine said.
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The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas.
PROGRAMME 2.1: CONSULAR AND PASSPORT SERVICES
Objective Support Australians in specific locations overseas through effective consular and passport services, accurate and timely travel advice, practical contingency planning and rapid crisis response.
Deliverables and key performance indicators Tables 13 and 14 summarise the results for programme 2.1 against the deliverables and key performance indicators set out in Austrade’s 2013-14 Portfolio Budget Statements.
Table 13: Summary of results for programme 2.1 deliverables
Deliverable Achieved
In specific locations overseas:
⺠deliver comprehensive, responsive, high-quality consular services to an increasing number of Australian travellers and citizens living overseas, including notarial services and assistance with welfare issues, location enquiries, arrest or detention matters and medical emergencies
⺠provide high-quality passport services to Australians, including processing new passport applications, registering lost or stolen passports, issuing emergency passports, and detecting passport fraud
⺠undertake effective consular contingency planning for major events or high-risk scenarios, including through regular reviews of procedures and available resources, training of staff and coordination with other government agencies and foreigngovernments.
OUTCOME 2
Australian Trade Commission Annual Report 2013-14 102
Table 14: Summary of results for programme 2.1 key performance indicators
Key performance indicator Achieved Outcome
In specific locations overseas:
⺠delivery of effective, efficient, timely and responsive consular services
Austrade continued to receive positive feedback from Australian citizens who used Austrade’s consular services. More than 808 citizens received consular support from Austrade during 2013-14(a) —see page 104.
⺠delivery of effective, efficient, timely and responsive passport services, with routine passports issued within 10 working days and urgent passport issues dealt with in a timely and responsive manner
In 2013-14, Austrade consulates processed without error 97.4 per cent of passport applications received. Austrade also met the 10-day turnaround time standard for passport applications in 99.6 per cent of applications—see page 104.
⺠anticipating high-risk events and scenarios through consular contingency planning, valid and viable procedures and networks, and regular reviews and tests of plans
Annual updates and testing of consular contingency plans were conducted across all Austrade-managed consulates to ensure they were ready to respond in an effective and timely manner to crises. Austrade facilitated 16 test exercises of consular contingency plans —see page 104.
⺠number of passport applications received
In 2013-14, 11,571 passport applications were received (11,258 in 2012-13)—see page 104.
⺠number of notarial acts. In 2013-14, 14,342 notarial acts were performed
(11,639 in 2012-13)—see page 104.
(a) I n 2013-14, Austrade realigned its reporting of consular assistance to show the number of instances where significant assistance has been provided to Australian citizens, rather than displaying the number of general enquiries. Significant assistance included assistance provided to citizens arrested or imprisoned overseas or who required medical assistance or hospitalisation, and support provided to families of citizens who have died overseas. This methodology is consistent with the approach taken by the Department of Foreign Affairs and Trade.
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AUSTRADE-MANAGED CONSULATES Austrade continued to provide support throughout the year to Australian citizens and permanent residents travelling and working overseas by delivering prompt, effective and courteous consular assistance and accurate and timely passport services. Austrade also provided access to current travel advice, practical contingency planning, and rapid crisis response in locations overseas where it has consular management responsibilities.
At 30 June 2014, Austrade operated consulates for the Australian Government in 16 overseas locations (Table 15), representing 17 per cent of the total number of Australian diplomatic and consular points of service. These consulates provide a range of services to Australian travellers and Australian citizens living overseas, including notarial services; assistance with welfare issues, missing persons, whereabouts enquires, arrest or detention matters and medical emergencies; support for victims of serious crime; processing new passport applications and replacing lost or stolen passports; and detecting attempted document or identity fraud.
Table 15: Austrade-managed consulates, at 30 June 2014
Auckland Prague(a)
Bogota San Francisco
Dubai Sao Paulo
Frankfurt Sapporo
f*ckuoka Toronto
Istanbul Ulaanbaatar
Milan Vancouver(a)
Osaka Vladivostok(a)
(a) T hese consulates are managed by an Honorary Consul.
Austrade-managed consulates continued to build on collaborative working relationships with other government and non-government agencies to facilitate effective crisis-related assistance. Consulates refined their contingency planning for major events and improved their preparedness for potential high-risk scenarios that may affect the safety and welfare of Australians overseas.
During the year, Austrade facilitated 16 test exercises of consular contingency plans and developed event-specific plans for events such as
Austrade assists with overseas voting in the 2013 federal election Austrade-managed consulates provide voting facilities for federal and some state and territory elections. The Australian Electoral Commission expressed its thanks to Austrade for assistance with overseas voting for the 2013 federal election. During the election,
73,976 votes were lodged at overseas locations, including 6,013 lodged across 14 of the 16 Austrade-managed consulates. For the first time in a federal election, Australians had access to assistance from consular officials in Bogota and Ulaanbaatar—a total of 122 Australians voted at these two locations. This followed the establishment of consulates-general in those cities by Austrade in 2012.
Australian Trade Commission Annual Report 2013-14 104
the America’s Cup in San Francisco in September 2013; the World Games and the Track Cycling World Championships in Cali, Colombia, in July 2013 and February 2014 respectively; the National Rugby League Nines event in Auckland in February 2014; and the FIFA World Cup in Brazil in mid-2014.
Austrade worked closely with Australian embassies and high commissions and with the Department of Foreign Affairs and Trade consular operations and passport operations branches in Canberra throughout the year, especially when dealing with complex cases.
Consular and passport services
In 2013-14, Austrade provided high-quality and responsive consular support to 808 Australians in difficulty overseas. This included assistance to 176 people arrested or imprisoned overseas,
94 people requiring medical assistance or hospitalisation, and support to the families of 64 people who died overseas. The number of notarial acts performed increased by 23 per cent from 11,639 in 2012-13 to 14,342 in 2013-14, which continues the upward trend of recent years.
The number of passport applications received increased by 2.7 per cent from 11,258 in 2012-13 to 11,571 in 2013-14. Austrade provided responsive passport services to Australians with urgent travel needs, issuing 844 emergency travel documents overseas within 48 hours of application in 2013-14.
Accuracy rates for processing passport applications were high—97.4 per cent were processed without error. Austrade continued to meet the 10-day turnaround time on passport applications, with 99.6 per cent of applications processed within the required timeframe.
Ghada Zaroubi Passport and Consular Support Officer, Dubai Ghada is part of
Austrade’s consular and passport team in Dubai, helping Australian citizens and permanent residents travelling or working in the United Arab Emirates.
Ghada started work with the Australian Government almost two decades ago at the Australian Embassy in Beirut. During the 2006 Israel-Hezbollah conflict, Ghada worked tirelessly to produce emergency passports for Australians being evacuated from Lebanon.
Along with the rest of the Beirut team, she was awarded the Department of Foreign Affairs and Trade Secretary’s Achievement Citation for the outstanding result achieved.
The following year, Ghada went on to work as a passport and consular officer at the Australian Consulate-General in Dubai.
In 2009, Ghada and the Dubai consular team were awarded a Global Austrade Staff Award for their commitment and professionalism in the delivery of consular services.
Ghada said her team has a constant and busy workload. ‘One of most notable consular cases I worked on in Dubai received considerable media interest in Australia. The case continued for five years, and was very intense’, she noted. Ghada’s dedication during this time earned her a Secretary’s Achievement Medallion.
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On 3 October 2013, responsibility for tourism policy, programmes and research was transferred to Austrade from the former Department of Resources, Energy and Tourism. As required by the rules governing changes to the machinery of government, in this section Austrade has reported for the whole financial year on the performance of the tourism programme against the former department’s 2013-14 Portfolio Budget Statements.
PROGRAMME 3: TOURISM-RELATED INITIATIVES AND MANAGEMENT
Objective The Australian tourism industry is diverse in nature and is characterised by a prevalence of small and medium-sized enterprises and a high level of labour intensity. The industry is facing a challenging environment with intense competitive pressures and is vulnerable to factors beyond its direct influence. The key objective of this programme is to lead the development and implementation of the Government’s tourism policy to maintain and promote a competitive tourism sector.
This programme seeks to strengthen and stimulate growth in the tourism industry through the following activities:
⺠facilitating growth of domestic and international tourism
⺠working with relevant partners to address regulatory barriers to tourism
⺠working with government agencies to support adequate planning and management of border security, transport linkages and safety to enhance tourism security
⺠working with other government agencies and stakeholders to ensure that infrastructure development contributes to the competitiveness of the tourism sector
⺠promoting the development of innovative products, services or systems within the tourism industry to improve the quality of Australia’s tourism products and services
⺠working collaboratively with stakeholders to support the development of sustainable Indigenous tourism businesses
⺠actively engaging with government agencies to ensure that the Government’s labour and skills policies contribute to a sustainable and productive tourism industry
⺠working with relevant partners to improve the resilience of the tourism industry and its capacity to adapt to changing circ*mstances
⺠facilitating the provision of research and statistics to support business investment and guide tourism policy development.
TOURISM POLICY, PROGRAMMES AND RESEARCH
Australian Trade Commission Annual Report 2013-14 106
Deliverables and key performance indicators Tables 16 and 17 summarise the results for programme 3 against the deliverables and key performance indicators set out in the former Department of Resources, Energy and Tourism’s 2013-14 Portfolio Budget Statements.
Table 16: Summary of results for programme 3 deliverables
Deliverable Achieved Outcome
Provision of accurate, timely and effective policy advice to the Minister and Government on tourism-related issues.
Provided timely and relevant briefings to the Minister and the Government on a wide range of tourism-related issues, including policy and programmes relating to domestic and international tourism, tourism products and services, and tourism research—see page 79.
Implementation of Tourism 2020 to improve the productive capacity of the tourism industry, including delivery of outputs agreed by tourism ministers in relation to:
⺠growing demand from Asia ⺠building competitive digital capability
⺠investment and regulatory reform ⺠tourism transport ⺠increasing supply of labour, skills and Indigenous participation
⺠building industry resilience, productivity and quality.
Effectively coordinated the implementation of Tourism 2020 and the delivery of outputs to support the tourism industry, with 25 of the 33 agreed Tourism 2020 priorities for 2013 successfully implemented. On track to meet key Tourism 2020 performance targets, including growth in visitor numbers and expenditure, accommodation capacity, levels of tourism investment, international and domestic aviation capacity, and tourism employment —see page 121.
Strategic support for the Australian Standing Committee on Tourism, and tourism ministers, to assist the ministers to oversee and lead the implementation of Tourism 2020.
Effectively supported the Australian Standing Committee on Tourism, and tourism ministers, in overseeing the implementation of Tourism 2020. The committee met on two occasions during the year. Tourism ministers met in October 2013 to review progress on work in the six strategic areas of Tourism 2020 and agreed on future national tourism policy principles and priorities. Ministers endorsed 22 priority actions for 2014 and have tasked officials with developing a Tourism 2020 Strategic Plan (2015-2020)—see page 121.
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Deliverable Achieved Outcome
Implementation of the National Tourism Accreditation Framework, working with relevant partners to improve the quality of tourism products and services.
Continued to work with Tourism Australia and the Tourism Quality Council of Australia to implement the National Tourism Accreditation Framework, also known as T-QUAL Accreditation.
The Government announced in its pre-election tourism policy in 2013 that it would transfer responsibility for T-QUAL Accreditation to industry through a tender process —see page 125.
Delivery of an enhanced China Approved Destination Status (ADS) scheme, to ensure a quality tourism experience for Chinese group leisure tourists.
Effectively delivered the China ADS scheme during 2013-14. The compliance monitoring agency engaged by Austrade conducted a range of compliance-checking activities across approved ADS tour operators, including random compliance checks across the approximately 12,000 tours operated in 2013-14. No ADS tour operators were removed or suspended from the scheme during the year for breaches of the ADS Code of Business Standards and Ethics.
In April 2014, Austrade released a discussion paper for public comment on reforms to the ADS code to increase the quality of the ADS experience for Chinese tourists. A new ADS code is expected to come into force in the second half of 2014.
The Government provided $10.1 million in the 2014-15 Budget to extend the China ADS scheme for a further four years —see page 126.
Australian Trade Commission Annual Report 2013-14 108
Deliverable Achieved Outcome
Delivery of the T-QUAL Grants Programme, and other tourism-related programmes, as required.
Continued to manage the T-QUAL Grants Programme during 2013-14. Successful applicants for the 2013 T-QUAL Tourism Quality Projects Grants round were announced in July 2013, and funding of $8.5 million was offered for 89 projects. A number of T-QUAL Strategic Tourism Investment Grants projects were also successfully completed in 2013-14. This programme terminates in 2014-15 and there will be no further grants offered.
In line with the Government’s policy priorities for tourism, Austrade established a new programme that will deliver demand-driver infrastructure for the tourism industry —see page 124.
Development of policy initiatives to support Indigenous tourism and engagement with relevant partners to support Indigenous tourism development in selected regions.
Engaged with government and industry stakeholders, including through the Tourism 2020 Indigenous Tourism Group, to progress an agenda focused on developing new Indigenous tourism products, including providing models for regional development through the Indigenous-based Strategic Tourism Investment Grants projects completed in 2013-14. An independent Indigenous chair was appointed to strengthen the Indigenous Tourism Group’s industry focus.
Engagement with key stakeholders to ensure that tourism interests are taken into account in the broader context of Australian Government policy development and implementation, including in relation to labour and skills, infrastructure development, and regulatory issues that impact tourism.
Engaged with government and industry stakeholders, including through the Tourism2020 working groups and roundtable consultations held across Australia, to progress and inform the development of the national tourism agenda. Austrade has also formed a tourism interdepartmental committee with relevant Australian Government agencies to ensure that a whole-of-government approach is taken to national issues—see page 122.
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Deliverable Achieved Outcome
Engagement in multilateral and bilateral forums to influence beneficial outcomes for the Australian tourismindustry.
Contributed to a number of bilateral air services negotiations in 2013-14, including with Malaysia and Qatar.
As part of the machinery-of-government changes following the 2013 federal election, the Department of Foreign Affairs and Trade assumed responsibility for international tourism engagement. This includes advocating Australia’s tourism interests through bilateral, regional and multilateral forums, including the United Nations World Tourism Organization, the Asia-Pacific Economic Cooperation (APEC) Tourism Working Group and the Organisation for Economic Co-operation and Development (OECD) Tourism Committee—see page 123.
Engagement with Tourism Australia on governance and programmeissues.
Continued to engage and collaborate effectively with Tourism Australia, including through regular meetings between key Tourism Australia and Austrade officers. Austrade also worked with Tourism Australia on the Australia Week in China events in April 2014 —see pages 38 and 123.
Coordination and management of the National Tourism Incident Communication Plan.
Continued to manage the National Tourism Incident Communication Plan. There were no incidents during 2013-14 requiring activation of the plan.
Australian Trade Commission Annual Report 2013-14 110
Deliverable Achieved Outcome
Deliver quality strategic research in the tourism sector through Tourism Research Australia (TRA) that includes:
⺠an enhanced national tourism research agenda informing policy development and industry investment decisions through the production and dissemination of tourism research and analysis
⺠production and dissemination of tourism forecasts and surveys for inbound, domestic and outbound markets to provide a comprehensive source of information on the characteristics and travel patterns of international and domestic tourists.
TRA released 45 research reports during 2013-14, including quarterly reports on domestic and international visitor numbers and behaviours; the biannual 10-year tourism forecasts; the 2013 State of the Industry report; the Tourism Investment Monitor; state-based tourism satellite accounts; the Tourism’s contribution to the Australian economy report; and Tourism productivity update 2014. TRA led the research component of the Asia Marketing Fund and released a number of reports to support policy development and industry activity in growing Asian markets.
TRA coordinated a more focused tourism research agenda through secretariat support for the Tourism Research Advisory Board and as a member of the Tourism Research Committee.
TRA’s new website, www.tra.gov.au, was launched in October 2013 and provides an enhanced platform for disseminating TRA data and reports—see page 127.
Establishment of the Tourism Industry Regional Development Fund (TIRF) programme, including the delivery of the first round of TIRF grants.
Continued to manage the TIRF grants programme during 2013-14. Projects on the Round 1 reserve list received offers of funding in July 2013, taking the total value of grants offered in Round 1 to $17.4 million.
This programme terminates in 2014-15 and there will be no further grants offered. Uncommitted funds allocated to the TIRF programme will be refocused to the Government’s new tourism demand-driver infrastructure programme—see page 124.
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Table 17: Summary of results for programme 3 key performance indicators
Key performance indicator Achieved Outcome
Tourism 2020
Growing demand from Asia
⺠Increase in visitor numbers and expenditure from key Asian markets as measured by TRA’s International Visitor Survey.
On target to meet Tourism 2020 goals based on an increase in visitor numbers and expenditure from key Asian markets as measured by TRA’s International Visitor Survey.
Latest data from the International Visitor Survey for the year ending March 2014 show that international visitor arrivals increased by 6.3 per cent to 6 million visitors, and expenditure by international visitors increased by 6.4 per cent to $29.6 billion, compared to the year ending March 2013. In the same period, the number of visitors from Asia increased by 8.9 per cent to 2.6 million and total expenditure increased by 5.6 percent to $13.8 billion.
Assessing the potential of leading Asian markets, China has the capacity to grow to $13 billion; Japan to between $2.7 billion and $3.3 billion; India to between $1.9 billion and $2.3 billion; Malaysia to between $2 billion and $2.5 billion; Singapore to between $2.3billion and $2.8 billion; and South Korea to between $2.8 billion and $3.4 billion.
Building competitive digital capability
⺠Increase in the percentage of industry doing transactions online—TRA to repeat benchmark tracking research.
⺠Increase in web and social media metrics that Tourism Australia currently tracks.
The 2013 Tourism Operators’ Digital Uptake Benchmark Survey found that almost 80 per cent of tourism operators had their own websites. Almost 90 per cent of operators take email booking requests. While less than half of the operators provided facilities for instant booking and confirmation, of those that did, 70 per cent allowed for online payments as well.
Approximately 60 per cent of tourism operators surveyed reported having an official presence on social media, with almost all of these having a presence on Facebook.
Australian Trade Commission Annual Report 2013-14 112
Key performance indicator Achieved Outcome
Tourism 2020
Investment and regulatory reform
⺠Increase in visitor accommodation capacity—to be measured by ABS Survey of Tourist Accommodation (and reported in TRA Tourism Scorecard and State of the Industry reports).
⺠Increase in levels of tourism investment—to be measured by new TRA Tourism Investment Monitor report.
⺠Uptake of destination management planning tool.
Increase in visitor accommodation capacity to 230,000 rooms in 2012-13 as measured by the Australian Bureau of Statistics’ Survey of Tourist Accommodation. Capacity in rooms has increased by 2,700 (1.2 per cent) since the introduction of the 2020 Tourism Industry Potential scenario for growth in 2010.
Latest data from TRA’s Tourism Investment Monitor show that the tourism investment pipeline was worth $49.4 billion in 2013—an increase of $5.2 billion (11.8 per cent) on the previous year. Increases were attributable to investment in aviation which was up $4.1billion (14.1 per cent) to $33.1 billion; and accommodation which was up $1.8 billion (32.1 per cent) to $7.4 billion—see page 120.
The destination management planning tool is a self-help tool that was developed to guide regional tourism organisations through the processes of destination management planning. It can be downloaded from the Austrade website and is also promoted and made available through the Australian Regional Tourism Network and various state and territory tourism organisation websites.
Tourism transport
⺠Increase in international and domestic aviation capacity—as measured by the Bureau of Infrastructure, Transport and Regional Economics (and reported in TRA Tourism Scorecard and State of the Industry reports).
In the year ending March 2014, international airline inbound seat capacity increased by 8.1 per cent to 21.5 million seats, compared to the year ending March 2013. In the same period, domestic airline seat capacity increased by 2.6 per cent to 77.6 million seats.
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Key performance indicator Achieved Outcome
Tourism 2020
Labour, skills and Indigenous participation
⺠Increase in the number of full-time and part-time jobs—as measured by the Australian Bureau of Statistics’ Tourism Satellite Account (and reported in TRA Tourism Scorecard and State of the Industry reports).
⺠Change in number of Indigenous Australians employed in the tourism industry—indicator under development by TRA.
⺠Track tourism labour productivity growth(TRA).
Latest available data from the Australian Bureau of Statistics’ Tourism Satellite Account show that, in 2012-13, total tourism employment increased by 2.1 per cent to 544,000 jobs. Part-time tourism employment increased by 4.6 per cent to 248,000 jobs; full-time tourism employment increased by 1.7 per cent to 296,000 jobs.
The indicator for ‘change in number of Indigenous Australians employed in the tourism industry’ remains under development, awaiting Indigenous-specific data from the Australian Bureau of Statistics.
As measured by TRA’s tourism productivity report, tourism labour productivity remained flat in 2012-13 at 0.2 per cent.
Industry resilience, productivity and quality
⺠Increase in tourism sector productivity—as reported by TRA regularly.
⺠Increase in the number of businesses with T-QUAL accreditation.
Not achieved 1,000 businesses were T-QUAL endorsed during 2013-14.
As measured by TRA’s tourism productivity report, tourism multifactor productivity declined by 0.3 per cent in 2012-13.
Australian Trade Commission Annual Report 2013-14 114
Key performance indicator Achieved Outcome
China Approved Destination Status (ADS) scheme
⺠Annual growth of at least 5 per cent in the number of ADS visitors to Australia (while increasing ADS visitor numbers are not a direct objective of the program, trends in ADS visitor numbers do reflect the success of the programme).
⺠Annual growth of at least 5 per cent in the overall number of Chinese tourists visiting Australia (trends in overall visitor numbers from China indirectly reflect the success of the ADS programme).
⺠70 per cent or more of ADS visitors indicate satisfaction with their tour group experience.
Mostly achieved
Annual growth in ADS visitor numbers had slowed to around 1 per cent at April 2014. This is attributed to the Chinese Government’s introduction of the China Tourism Law in October 2013, which has led to widespread industry adjustment in the way the ADS scheme is run, and a temporary dip in ADS numbers. Signs of recovery have begun to appear, with an extremely strong ADS performance over the Chinese New Year, but the figures for the entire year have been softer due to the adjustment process as the new law is implemented. For the year ending March 2014, the number of Chinese tourists visiting Australia increased by 14 per cent from 614,000 to 697,000.
The most recent satisfaction survey of Chinese tourists covering the period January to June 2013 found that 90 per cent of tourists rated their overall experience greater than 7 on a scale of 1 to 10.
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Key performance indicator Achieved Outcome
T-QUAL Grants Programme
For each annual funding round:
⺠the completion rate for T-QUAL grants projects where a funding agreement has been signed will be at least 90 per cent
⺠the level of additional investment attracted by projects, including matching cash and other contributions, will be at least 110 per cent of the amount of the T-QUAL grants awarded
⺠at least 90 per cent of completed T-QUAL grants projects will have met all of their individual project deliverables/key performance indicators
⺠an increase or maintenance of the level of business turnover and employment levels in tourism businesses receiving a T-QUAL grant between the baseline (milestone 1 report) and projected levels reported at the conclusion (final milestone report) of the project.
The 2011 grant round completion rate was 91 per cent. The 2012 and 2013 rounds still have active projects, so an assessment of completion rates cannot be undertaken at this time.
Additional investment (measured at the time of offer) for:
⺠2011 round—for the 117 projects initially offered funding of $8.4 million, matching funds were $9.8 million.
⺠2012 round—for the 77 projects initially offered funding of $6.68 million, matching funds were $18.3 million.
⺠2013 round—for the 89 projects initially offered funding of $8.5 million, matching funds were $18.4 million.
Deliverables for the completed projects in the 2011 round were all successfully met. As there are still active projects in the 2012 and 2013 rounds, achieved deliverables cannot be assessed at this time.
Data on the level of business turnover and employment levels in tourism businesses that have received a T-QUAL grant are not yet available.
Australian Trade Commission Annual Report 2013-14 116
Key performance indicator Achieved Outcome
Tourism research
⺠Timely release of National Visitor Survey (quarterly releases scheduled for March, June, September and December).
⺠Timely release of International Visitor Survey (quarterly releases scheduled for March, June, September and December).
⺠Timely release of forecasts through the Tourism Forecasting Committee (biannual releases scheduled for May and October).
⺠Release of the State of the Industry report at the annual Australian Tourism Directions Conference (annual publication).
⺠Annual growth of 5 per cent or more in subscriptions for TRA Online.
⺠Annual growth of 5 per cent or more in number of requests to purchase TRA data.
⺠Annual growth of 5 per cent or more in number of visitors to TRA website.
Mostly achieved
Timely release of quarterly National Visitor Survey report as per approved schedule.
Timely release of quarterly International Visitor Survey report as per approved schedule.
Tourism forecasts were delayed until June 2014 due to significant revisions in base data.
Timely release of the State of the Industry report at the 2013 Australian Tourism Directions Conference.
Online data subscriptions decreased by one subscription from 82 to 81 in the year ending March 2014, compared to the year ending March 2013.
The total number of data requests through TRA’s Statsline service fell by 24 per cent to 528 enquiries in the year ending March 2014, compared to the year ending March 2013. This included a fall in the number of data purchases initiated via Statsline from 74 in the year ending March 2013 to 58 in the year ending March 2014.
In 2013-14, there were around 56,000 users of, and 96,000 sessions on, the refreshed TRAwebsite.
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Key performance indicator Achieved Outcome
Stakeholder satisfaction
⺠High degrees of stakeholder satisfaction from survey of Australian Tourism Directions Conference participants.
⺠Conference (jointly organised with Tourism Australia)—at least 80 per cent of respondents indicate good/very good against areas surveyed.
⺠Quality of outputs (e.g. TRA publications, including the State of the Industry report)—at least 80 per cent of respondents indicate good/very good against areas surveyed.
Achieved based on survey of participants at the 2013 Australian Tourism Directions Conference, which was rated excellent, very good or good by 92 per cent of respondents.
Anecdotal feedback received from respondents at the 2013 Australian Tourism Directions Conference showed that they were very satisfied with the quality and format of TRA publications. As a result, TRA has continued to develop this well-accepted format, including a broader use of infographics, based on this feedback.
⺠High degrees of stakeholder satisfaction, as measured through the annual Department of Resources, Energy and Tourism Stakeholder Satisfaction Survey.
⺠Staff attributes—at least 80 per cent of respondents indicate good/very good against areas surveyed.
⺠Enquiries in general—at least 80 per cent of respondents indicate good/very good against areas surveyed.
⺠Policy development process—at least 80 per cent of respondents indicate good/very good against areas surveyed.
⺠Level of consultation—at least 80 per cent of respondents indicate good/very good against areas surveyed.
⺠Overall satisfaction—at least 80 per cent of respondents indicate rating of satisfied/very satisfied.
Unable to measure The Department of Resources, Energy and Tourism (RET) was abolished following the
2013 federal election. As a result, the RET Stakeholder Satisfaction Survey was not conducted in 2013-14.
Quality rating of outputs, for example TRA publications, including the State of the Industry report, showed that 75 per cent of respondents indicated that they were satisfied or very satisfied with TRA publications in the 2014 TRA Stakeholder Satisfaction Survey.
Australian Trade Commission Annual Report 2013-14 118
Key performance indicator Achieved Outcome
Tourism Industry Regional Development Fund (TIRF) grants programme
⺠Completion rate for TIRF grant projects in accordance with executed funding agreements between the recipient and the Commonwealth.
⺠Additional investment in TIRF grant projects, including matching funding of recipients, will be at least 110 per cent of grant funding awarded.
⺠Completed grant projects to have met the recipient-specific key performance indicators outlined in executed funding agreements.
⺠Demonstrated increase in visitor numbers, revenue and employment by recipient businesses, benchmarked against the relevant tourism region, measured during the period between the submission of grant application, and 12 months following the completion of the grant project.
⺠Grants recipients eligible for T-QUAL accreditation to be T-QUAL accredited by completion of their funded project.
The first round of the TIRF grants programme is ongoing. It is not possible to provide data on key performance indicators associated with project completion rates, achievement of recipient-specific key performance indicators, increase in visitor numbers, revenue and employment, or achievement of T-QUAL accreditation by the completion of the project.
Data are available for additional investment. For the 85 projects initially offered funding of $17.4 million, matching funds were $158 million.
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STRENGTHENING AUSTRALIA’S TOURISM INDUSTRY
Austrade’s role
Austrade provides tourism policy advice to the Government and works with state and territory governments and the tourism industry to develop the key actions in the Tourism 2020 strategy. Austrade also manages government tourism programmes. Tourism Research Australia (TRA), a professionally independent agency within Austrade, conducts research to provide tourism statistics and economic insights to governments and industry.
The Australian tourism industry is a significant driver of economic activity. In 2012-13, the industry contributed around $42.3 billion (2.8percent) to Australia’s gross domestic product (GDP) (Figure 22). The industry supports approximately 280,000 tourism-related businesses, providing 543,600 jobs (4.7 per cent of Australia’s workforce), and generates $26.9 billion (8.9 per cent) of Australia’s export income.50
Figure 22: Tourism’s share of Australia’s GDP, employment and exports, 2012-13
2
4
6
8
10
Share of total (%)
GDP Employment Exports
Source: Australian Bureau of Statistics 2013, Tourism Satellite Account, 2012-13, cat. no. 5249.0.
50 A ustralian Bureau of Statistics 2013, Tourism Satellite Account, 2012-13, cat. no. 5249.0.
Industry performance
Despite a slow recovery from the global financial crisis for many of Australia’s trading partners, and a strong Australian dollar in recent years, there has been continued growth in the number of international visitors to Australia, up 6.3 percent in the year ending March 2014 compared to the same period 12 months earlier. International visitors in Australia spent $29.6 billion in the year ending March 2014, which was up 6.4 per cent on the previous year.
While there was strong growth in visitor numbers from Singapore and Malaysia, more than half of the growth in international visitor expenditure was sourced from Chinese visitors.
Visitor numbers from the United States were the largest on record, increasing by 6.7 per cent to 487,500. Nights spent in Australia by visitors from the United States were up 4.8 per cent, and total trip expenditure increased by 5.8 per cent in the year ending March 2014.
Visitor numbers from the United Kingdom increased by 9.4 per cent, nights by 9 per cent and total trip expenditure by 12 per cent. Increases in visitor numbers were also recorded for Italy (up by 8.8 per cent), Germany (up by 8.5 per cent) and France (up by 6 per cent).51
Domestic tourism represents around three-quarters of total tourism expenditure. Latest data from the TRA National Visitor Survey for the year ending December 2013 show that Australians spent $69.8 billion on tourism in Australia, an increase of 2.3 per cent on the previous year.
51 T RA 2014, International visitors in Australia: March 2014 quarterly results of the International Visitor Survey.
Australian Trade Commission Annual Report 2013-14 120
Emma McDonald Manager, Investment and Regulatory Reform, and Manager, Tourism Major Project Facilitation Service, Canberra
Emma leads a small team of experts in tourism policy, regulatory reform and investment facilitation, and focuses on improving the supply
of tourism infrastructure in Australia to meet the strategic objectives of Tourism 2020. ‘We work closely with federal, state and territory government agencies to foster a supportive and streamlined regulatory environment for the sector, which is often disproportionately affected by regulation’, Emma said.
Her team also provides policy analysis and advice on government initiatives and industry developments that affect tourism, and offers a facilitation service for tourism projects worth more than $50 million.
Emma joined Austrade when it took on the responsibility for tourism policy from the former Department of Resources, Energy and Tourism in late 2013. She has qualifications in town planning and has worked in programme delivery for the Victorian and federal governments. She also has experience in stakeholder engagement for government and says her background has given her an awareness of the issues faced by businesses in their dealings with regulation, and how to build partnerships across government to increase productivity.
Overnight visitor expenditure rose by 3 per cent to $51.5 billion, while domestic day-trip expenditure increased slightly by 0.4 per cent to $18.3 billion.
Tourism activity and expenditure outlook
The outlook for the coming year remains positive, with forecasts suggesting growth in international visitor expenditure of 5.2 per cent. Latest forecasts for the next 10 years suggest continued strong growth, underpinned by continued growth in Chinese visitor numbers.
Forecasts for domestic visitor nights expenditure for the next 10 years suggest moderately lower growth, up by 1 per cent on average each year to2022-23.
Total expenditure by international and domestic visitors travelling in Australia is forecast to grow
by 1.8 per cent per year in real terms to 2022-23, reaching $114.6 billion.52
Investment in Australia’s tourism industry
Ongoing investment in critical tourism infrastructure—particularly in domestic and international aviation and accommodation—is crucial to industry growth. TRA has estimated that the tourism investment pipeline (from planning to completion) was worth $49.4 billion in 2013. While a large part of this pipeline investment reflects increased demand for aircraft (either leased or purchased), pipeline investment in air industry and accommodation infrastructure has increased in recent years.53
52 TRA 2013, Tourism forecasts: spring 2013.
53 TRA 2014, Tourism Investment Monitor 2014.
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The Tourism 2020 strategy The Tourism 2020 strategy is a whole-of-government initiative designed to lift tourism productivity, innovation and quality, and position the tourism industry to achieve its growth potential by 2020.
Under the strategy, the Commonwealth and state and territory tourism ministers are committed to working with the tourism industry to achieve the 2020 Tourism Industry Potential of doubling overnight visitor expenditure to between $115 billion and $140 billion by 2020. This means attracting greater levels of investment, access and visitation, particularly from Asian markets, and increasing the supply of quality tourism products and services to meet the growing demand.
Strategic plan for 2015-20
In October 2013, Commonwealth, state and territory tourism ministers endorsed four national tourism policy principles to guide collaboration on tourism policy matters. They were to:
⺠encourage high-quality tourism experiences, including Indigenous tourism
⺠limit the tax, red tape and other regulatory burden that the industry faces
⺠undertake coordinated and effective marketing campaigns to drive demand
⺠work with industry to support the development of tourism infrastructure that can drive demand.
Tourism ministers tasked the Australian Standing Committee on Tourism with developing a Tourism 2020 strategic plan for 2015-20. The strategic plan will:
⺠integrate the four national tourism policy principles into the Tourism 2020 implementation framework
⺠be developed in partnership with the tourism industry
⺠provide industry and government stakeholders with a set of strategies to meet the 2020 Tourism Industry Potential
⺠develop strategies to focus on removing barriers to growth, and be observant of Commonwealth, state and territory governments’ fiscal policies.
Since taking on responsibility for tourism policy, programmes and research, Austrade has convened a series of industry roundtables in each state and territory to help identify the major reforms that governments, along with industry stakeholders, could undertake to meet the 2020 Tourism Industry Potential. More than 160 industry leaders participated in these forums.
A steering group of government and industry representatives was also convened to synthesise the outcomes of the industry consultations and develop a priority list of reforms for Commonwealth, state and territory tourism ministers to consider at their meeting in July 2014. After incorporating feedback from the meeting and finalising the strategic plan, senior officials and industry representatives will present the plan at the final tourism ministers’ meeting of 2014.
Austrade has also formed an interdepartmental tourism committee, chaired by its CEO, with high-level representation from relevant Australian Government agencies, to continue to ensure that a whole-of-government approach is taken to national tourism issues.
Australian Trade Commission Annual Report 2013-14 122
Tourism policy
Austrade continued to deliver initiatives in support of Tourism 2020 goals, with particular emphasis on supply-side issues such as investment and regulatory reform, labour and skills, and tourism transport access.
Labour and skills
Austrade focuses on assisting tourism firms to address labour and skill constraints, overcome seasonal labour shortages and improve workforce planning to meet future skills needs.
Tourism employment plans
Following the launch in 2012-13 of the Broome and Red Centre tourism employment plans, two more plans were launched this year, one for Sydney, New South Wales, and the other for the Mornington Peninsula and Phillip Island in Victoria. The plans included more than 100 strategies to support regional workforce planning. Consultations were held with more than 1,300 stakeholders during the development of the plans. An additional four plans are currently under development in the labour and skills hotspot regions of Tropical North Queensland, Kangaroo Island in South Australia, Canberra and regional Tasmania.
During the year, a guide to developing a tourism employment plan was published and an advisory service was launched to direct tourism planners through the essential processes and considerations in setting up a plan.
Migration
Austrade has continued to work collaboratively across government towards the removal of barriers preventing tourism businesses from accessing labour needed to fill the industry’s labour shortages. In 2013-14, a Vocational Training
and Employment Centre was established in Cairns to support the delivery of the Workforce Futures programme.
During the year, as part of the Tourism 2020 strategy, Austrade made submissions to the Productivity Commission inquiry into labour market mobility and to the Australian Workforce and Productivity Agency on the composition of the Skilled Occupation List. These submissions outlined options to enable the tourism industry to access the labour it needs.
In 2013-14, key changes to the migration programme to allow tourism businesses to better access temporary labour included the inclusion of chefs (the first tourism trade occupation) on the Skilled Occupation List and negotiations for a template labour agreement with the hospitality sector. Under the auspices of Tourism 2020, Austrade continued to advocate for an extension of the working holidaymaker visa programme.
Also during the year, the Seasonal Worker Programme trial was extended beyond Broome to the whole of Western Australia’s accommodation sector. Trials are also taking place in the Northern Territory, Tropical North Queensland, the Whitsundays and Kangaroo Island.
Transport
To support the achievement of the Tourism 2020 objectives, it is essential that the supply of transport capacity and efficient transport infrastructure continues to move ahead of demand, ensuring Australia’s competitiveness as a visitor destination.
As an island continent, Australia relies almost exclusively on air services to bring international visitors to the country. Latest indicators suggest steady growth in aviation capacity. Direct aviation capacity (or total inbound seats operated) into
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Australia rose by 8.1 per cent to 21.5 million seats in the year ending March 2014. This was underpinned by strong growth in capacity coming from airlines based in China, Malaysia and the Middle East. However, domestic capacity growth has eased after a period of intense competition by Qantas Airways and Virgin Australia.
In 2013-14, Austrade made submissions to the Department of Infrastructure and Regional Development to inform the Australian Government’s negotiation position for a number of bilateral air services negotiations, including with Malaysia and Qatar. This is consistent with the Tourism 2020 objective of ensuring that the transport environment continues to facilitate tourism access.
Austrade contributed to the Productivity Commission’s inquiry into the arrangements for supporting freight and passenger services between the Australian mainland and Tasmania. Austrade’s submission highlighted the impact of the Bass Strait Passenger Vehicle Equalisation Scheme and coastal trading regulations on the competitiveness of the Australian tourism industry.
Austrade also made a number of submissions to the Department of Infrastructure and Regional Development on the application of coastal shipping licences for expedition cruise ships. This is also consistent with the Tourism 2020 objective of ensuring that the transport environment continues to facilitate tourism access.
Investment and regulatory reform
A key pillar of the Tourism 2020 strategy is increasing investment to develop both new tourism products and refresh existing products to increase the quality of the Australian tourism offering.
Austrade continued to support the investment and regulatory reform agenda through the Australian Tourism Investment Attraction Partnership with Tourism Australia. The partnership seeks to identify potential barriers to investment and address areas of reform that could reduce the time and cost associated with complying with government regulations.
In April 2014, the partnership released its second yearly report detailing activities undertaken to increase investment in tourism infrastructure. In2013, the partnership facilitated six investment outcomes with investors committed to invest approximately $450 million to create 490 new hotel rooms and upgrade 544 existing rooms and villas. The new construction is expected to create around 892 direct and indirect jobs.
The Tourism Major Project Facilitation service complements existing state and territory government business facilitation services, and case-manages major tourism projects through the Government’s approvals processes. The service is currently assisting five major tourism development projects totalling more than $2 billion that will support around 12,000 jobs. During 2013-14, the service provided assistance to proponents across a diverse range of issues including environmental approvals, land tenure arrangements and taxation.
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Tourism programmes
Throughout the year, Austrade continued to manage and deliver programmes to build tourism industry resilience, quality and productivity. These included T-QUAL Tourism Quality Projects Grants; T-QUAL Strategic Tourism Investment Grants; Tourism Industry Regional Development Fund grants; the National Tourism Accreditation Framework (T-QUAL Accreditation); and the China Approved Destination Status (ADS) scheme.
Tourism grants
The Tourism Industry Regional Development Fund (TIRF) and T-QUAL Tourism Quality Projects are competitive, merit-based grant programmes that match funding from the applicant, and are generally for small-scale projects. Successful applicants in 2013-14 received grants for new attractions, new tourism products (including digital products), accommodation and attraction upgrades, and new Indigenous tourism experiences.
Austrade administered more than 250 grants under the two programmes, including successful applications from new funding rounds. Successful applicants for TIRF grants were announced in March and July 2013, and successful applicants from the final T-QUAL Tourism Quality Projects round were announced in July 2013.
Strategic Tourism Investment Grants
Austrade developed responses to a range of nationally significant problems for the tourism sector that required innovative solutions, principally through the T-QUAL Strategic Tourism Investment Grants. These grants provided targeted seed funding of up to $1 million for a small number of nationally significant, innovative projects aimed at supporting Indigenous tourism, economic development and tourism employment. A total of eight projects were approved over the life of the programme. Seven of these projects concluded in 2013-14, and one project will conclude in 2014-15.
The grants are being used to develop a range of Indigenous business skills and tourism products, and to enhance the capacity of the industry to better understand and service the growing Chinese inbound tourism market. As part of the Australia’s National Landscapes programme run by Parks Australia and Tourism Australia, a grant is also being used to develop local and regional industry strategies and products that blend tourism and conservation outcomes in Australia’s iconic landscapes (see page 125).
These tourism grant rounds will be the final in this format. In 2014-15, unallocated funds for TIRF grants and the two T-QUAL grants will be consolidated into a programme that focuses on demand-driver infrastructure. Austrade has consulted with state and territory governments on programme principles and the distribution of funds. In April 2014, a discussion paper was released for industry comment on the definition of demand-driver infrastructure and industry’s infrastructure priorities.
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Australia’s National Landscapes expanded by strategic tourism investment grant The Australia’s National Landscapes programme is a partnership between Parks Australia and Tourism Australia that aims to achieve conservation, social and economic outcomes for Australia through the promotion of nature-based tourism experiences to the ‘global experience seeker’ tourism market. The programme focuses on 16 iconic tourism locations across Australia.
A T-QUAL Strategic Tourism Investment Grants project was developed to support improved investment in National Landscapes. The project encompassed completion of an experience development strategy and the subsequent implementation of priority projects under the strategy.
Key project outcomes included an experience development strategy for an additional four National Landscapes and an increased level of interest from investors in identified priority projects.
On top of the initial $2 million grant, and matching cash from project partners, the project generated an estimated $1.2 million in additional investments. Partnerships have also been strengthened at a regional or landscape level by bringing together a wide range of stakeholders to work collaboratively on projects.
A number of new tourism products are also being developed, including Australia’s first International Mountain Bicycling Association Epics ride in the Australian Alps National Landscape, which will open in 2014.
The 16 iconic locations in the Australia’s National Landscapes programme.
T-QUAL Accreditation
The National Tourism Accreditation Framework, branded as T-QUAL Accreditation, provided an umbrella framework under which existing tourism-related quality assurance schemes could apply to cobrand, using a certified trademark, the T-QUALTick, under the terms of individual master licences held with the Commonwealth.
The T-QUAL Tick identified the tourism businesses and operators in Australia that had been endorsed as meeting the quality standards of T-QUAL Accreditation and provided one national symbol that enabled consumers to recognise quality products and services easily.
The Government’s pre-election tourism policy included a commitment to transition responsibility for accreditation of tourism products to industry,
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with up to $600,000 of funding to be allocated through a tender process. Austrade consulted with industry in February 2014, and released a tender in April 2014 for all elements of the programme that have been run by the Government. However, as there was no successful tenderer, the Governmentceased T-QUAL Accreditation on 30June 2014. Austrade is implementing strategies for closure and stakeholder engagement to wind up the programme.
China Approved Destination Status scheme
The China Approved Destination Status (ADS) scheme is a bilateral arrangement established by the Chinese Government that requires host countries like Australia to provide integrity, competition and a fair trading environment to the Chinese inbound leisure tour group market, and to provide Chinese inbound tourists with knowledge and choice so they can exercise effective consumer power in the market. The ADS permits Australia to host leisure tour groups from China. The scheme has enabled more than 1 million Chinese tourists to undertake group leisure travel to Australia since 1999. Although ADS visitors now make up a relatively small proportion of the total Chinese inbound market, the scheme remains an important tool for developing tourism travel to Australia from new Chinese regional markets.
Austrade employs a dual strategy to meet the needs of Chinese tourists, improve the quality of their Australian experience, and maintain Australia’s approved destination status. A quality assurance programme for inbound tourism operators ensures compliance with the ADS Code of Business Standards and Ethics for tourists travelling under the scheme; and a capacity-building programme assists the Australian tourism industry to develop a quality product tailored to the needs of Chinese visitors.
The compliance monitoring agency engaged by Austrade, Signet Group International Pty Ltd, conducted random code compliance checks across the approximately 12,000 ADS tours operated in 2013-14. Signet Group International also managed a ‘mystery shopper’ assessment, where operators were graded by assessors posing as customers. Information gathered from these activities was used to caution or deregister inbound tourism operators found to be in breach of the code. The information was shared with government agencies through the ADS Compliance Taskforce, which coordinates measures to target undesirable activity in the ADS market.
In April 2014, Austrade released a discussion paper for public comment on reforms to the ADS code. The discussion paper identified five principles for increasing the quality of the ADS experience for Chinese tourists. These are:
⺠positive service outcomes for ADS tourists— implementation of criteria which ensure delivery of promised service outcomes to guarantee a quality tourism experience for ADS tourists
⺠improve scheme administration—streamlining of administration of the scheme for the Australian Government and inbound tourism operators
⺠improve code clarity—clarification of the requirements for inbound tourism operators and what the consequences are for noncompliance
⺠maximise economic benefits—ensuring the economic benefits from the China tourism market are optimised across the Australian tourism industry
⺠align the ADS scheme to the China Tourism Law—creation of accord between the ADS scheme and the applicable provisions of the China Tourism Law.
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Submissions on the discussion paper closed in late April 2014 and the industry is now considering the final draft of the code. The new ADS code is expected to come into force during the second half of 2014.
Tourism research
Tourism Research Australia (TRA) provides quality tourism intelligence and analysis across the international and domestic tourism markets, as well as forecasts of tourism activity. TRA supports Tourism 2020 by providing the independent research required to inform the development of the strategy’s principal objectives, and tracks the progress of tourism’s critical performance indicator, the 2020 Tourism Industry Potential, in its annual State of the Industry report.
The work of TRA is supported by a statement of professional independence. The Tourism Research Advisory Board monitors TRA’s work programme as an important and integral part of the national research agenda for tourism. TRA released 45 research reports in 2013-14, including flagship publications such as the State of the Industry report, the Tourism Investment Monitor, and the International Visitor Survey and National Visitor Survey reports.
Website and mobile application
TRA’s website, www.tra.gov.au, provides a platform for disseminating TRA data and reports, and its mobile application, TRA Statistics, launched in October 2013, highlights top-line tourism statistics sourced from TRA and the Australian Bureau of Statistics. At 30 June 2014, the app had been installed on 598 mobile devices (485 on iOS devices and 113 on Android devices).
Asia Marketing Fund projects
The Asia Marketing Fund was established in 2012 to promote Australia as a tourism destination to growing markets in Asia. TRA leads the research component of the Asia Marketing Fund, providing a strong evidence base to support government policy development and industry activity. This allows opportunities presented by the Asian market to be realised and maximised.
Asia Marketing Fund reports released by TRA in 2013-14 included:
⺠Engaging with Asia—resources ⺠Strategies to assist tourism industry SMEs to engage with Asian markets
⺠Understanding dispersal of Asian visitors: The International Visitor Survey Data Mining Project
⺠Chinese Visitor Satisfaction Survey: summary report.
‘ Tourism Research Australia provides quality market intelligence, analysis and forecasts of tourism activity.’
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Chinese Visitor Satisfaction Survey report China is Australia’s fastest-growing inbound tourism market and the largest contributor to international visitor spending in Australia.54
Between 2012-13 and 2022â’23, the number of Chinese visitors is forecast to increase from 685,000 to 1.4 million, and their real inbound tourism expenditure from $4.4 billion to $8.2 billion.
TRA’s Chinese Visitor Satisfaction Survey report found that Australia’s natural environment and liveability were major drawcards for Chinese visitors, and were the main reasons why they would recommend Australia as a place to visit.
Based on interviews with 3,600 Chinese visitors to Australia during 2013, the report found that 90 per cent of visitors were satisfied with their trip to Australia and 83 per cent said their trip met or exceeded expectations.
Other important findings reported include the following:
⺠Forty-four per cent of Chinese visitors cited Australia’s ‘unspoilt natural environment’ as the single best feature of Australia.
54 T RA 2013 (unpublished data).
⺠The one-third of Chinese visitors who ate western food every day (or most days) were more likely to have a trip better than expected, while those who never ate western food had lower overall trip satisfaction.
⺠Chinese visitors were particularly happy with personal safety and security (96 per cent), the friendliness of locals (94 per cent) and Australia’s attractions (77 per cent). Wine experiences (72 per cent) and food and beverages (69 per cent) also rated highly.
⺠Satisfaction was lower for ‘value for money and shopping’, with only 50 per cent of Chinese visitors satisfied with shopping in Australia. Satisfaction levels were higher for independent travellers from China than they were for group tourists.
Overall, the study indicated that the majority of Chinese visitors are likely to recommend Australia as a holiday destination to their family and friends.
The report is available on TRA’s website, www.tra.gov.au.
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Asia Marketing Fund research projects that were underway in 2013-14 include:
⺠Japan and Korea Visitor Satisfaction Survey— The objective is to determine drivers of satisfaction and causes of dissatisfaction among visitors from Japan and Korea, and the activities that visitors enjoy and dislike. Understanding these factors will inform development of government policy and marketing strategies, as well as industry decision-making to enhance the experience of Japanese and Korean visitors.
⺠Dispersal of Chinese free independent leisure travellers in Australia—The objective is to determine potential drivers of dispersal for Chinese free independent leisure travellers. Important individual and trip characteristics of these visitors will be identified that could influence their dispersal outside of the main gateways of Sydney, Melbourne, the Gold Coast, Brisbane and Perth.
⺠High-spending Asian leisure visitors—The objective is to better understand the current patterns and trends in expenditure by Asian visitors and to identify potential areas where increased expenditure could be encouraged. Research will focus on leisure travel by residents of key Asian countries, such as China, India, Japan and Malaysia.
Reports and surveys
Key TRA releases in 2013-14 are listed below.
National surveys
⺠Results of the International Visitor Survey and National Visitor Survey—includes information on the travel behaviour of international visitors at a state and territory and national level, and information on Australian resident travel
within Australia, including overnight and day visits, and overseas travel. These reports are released quarterly.
Forecasts
⺠Tourism forecasts—provides 10-year forecasts for Australia’s inbound, domestic and outbound (overseas) tourism sectors. This report is released biannually.
⺠Regional forecasts—presents forecasts of visitor nights in Australia’s states and territories during the next decade. This report is released annually.
Economic analysis reports
⺠State of the Industry 2013 and Tourism Scorecard—assess the performance of the Australian tourism industry and highlight long-term issues affecting its performance.
⺠Tourism update: updated results to State of the Industry 2013—provides top-line information on Australia’s tourism industry.
⺠Tourism Investment Monitor 2014—provides an estimate of the total value of large-scale projects in the tourism investment pipeline. This report is released annually.
⺠Tourism’s contribution to the Australian economy, 1997-98 to 2012-13—estimates the tourism industry’s contribution to Australia’s economy. This report is released annually.
⺠Tourism productivity in Australia—assesses the productivity performance of tourism and its key contributing industries.
⺠Tourism Satellite Account 2012-13— summarises the key results from the Australian Bureau of Statistics’ Tourism Satellite Account.
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⺠State Tourism Satellite Accounts—supplements the national Tourism Satellite Account published by the Australian Bureau of Statistics with a similar set of data expanded for all states and territories.
⺠Small-scale accommodation survey: an evaluation report—evaluates the survey which ceased in October 2013.
⺠Tourism employment projections—contains tourism employment projections in Australia’s state and territory economies over the period 2011-12 to 2029â’30.
⺠Tourism businesses in Australia—reports various metrics on businesses in tourism-related industries in Australia including numbers, employment, legal structure, location and financial performance.
Regional reports
⺠Regional tourism profiles —provides comprehensive tourism demand and supply data for 77 of Australia’s tourism regions and all states and territories.
⺠Destination Visitor Surveys, including:
- NSW—Newcastle Visitor Profile and Satisfaction Survey
- NSW—Albury Visitor Profile and Satisfaction Survey
- QLD—Gold Coast Visitor Profile and Satisfaction Survey
- QLD—The Whitsundays Research— Converting the Considering!
- QLD—Chinese Residents in Australia and their Perceptions of Queensland
- SA/VIC—Great Ocean Road Visitor Profile and Satisfaction Survey
- SA/NT—Driving Dispersal of International Visitors to South Australia and Northern Territory
- WA—Food and Wine Visitors in Western Australia
- WA—Evaluating the Caravan Park and Self-Contained Traveller Sector in Western Australia
- TAS—Motivators and Satisfaction of Visitors to Tasmania
- ACT—The International Education Market in the Australian Capital Territory: Tourism Impacts and Opportunities.
Other reports
⺠Tourism ready reckoner—top-line statistics on the direct contribution of tourism to Australia’s economy, and international and domestic visitor numbers, nights and expenditure. This report is released quarterly.
⺠Tourism Operators’ Digital Uptake Benchmark Survey—findings from the 2013 benchmark survey of tourism operators’ digital uptake in Australia.
These reports are all available on the TRA website, www.tra.gov.au.
MANAGEMENT AND ACCOUNTABILITY Corporate governance 1 32
Risk management 13 9
Legislative framework and external scrutiny 1 41
Management of human resources 1 42
Financial management and business assurance 1 53
Managing knowledge and information 1 56
PART
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Austrade, a statutory agency within the Foreign Affairs and Trade portfolio, is a prescribed agency subject to the Financial Management and Accountability Act 1997 and the Public Service Act 1999. Austrade has an executive management governance structure headed by its Chief Executive Officer (CEO).
CORPORATE GOVERNANCE Austrade’s corporate governance framework supports achievement of the agency’s stated objectives, deliverables and key performance indicators in an ethical, efficient and effective manner. The framework provides a mature system for managing risk (internal controls), human and financial resources, and planning and assurance processes.
The CEO is responsible to the Minister for Trade and Investment for Austrade’s performance. The CEO is assisted in his role by an Executive Group, an Audit and Risk Committee, an Ethics Committee and a number of internal management committees (Table 18, see page 137). Both the Audit and Risk Committee and the Ethics Committee have independent chairpersons, and the Audit and Risk Committee has an additional independent member.
Anti-bribery
Austrade continues to take steps to ensure its practices comply with the anti-bribery provisions in section 70 of the Australian Criminal Code, as well as Australian and international law and Austrade policy. Initiatives include mandatory training for all staff on ethical standards and legal obligations. Staff receive this training on commencement with Austrade, before overseas postings, and in regular face-to-face anti-bribery workshops.
Austrade has collaborated with state and territory governments and other Australian Government agencies on the development of anti-bribery material and has given anti-bribery presentations to business and industry groups nationally and internationally. In August 2013, Austrade’s CEO presented at the International Commercial Law and Arbitration Conference in Sydney on Austrade’s role in promoting trade and investment in compliance with the OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions.
Austrade is also working with business groups, chambers of commerce and other organisations on anti-bribery outreach programmes and actively supports the work of international organisations like the OECD and Transparency International.
Austrade continues to remind Australian businesses operating in international markets of their ethical and legal obligations under Australian law.
The OECD’s 2012 report on bribery required Austrade to raise awareness of the risk of bribery, the risk of facilitation payments and the importance of a proper compliance programme among the business community. Austrade was specifically required to warn of the issues and potential risks involved in the use of foreign agents. In response, lawyers from Austrade’s legal unit met with clients and businesses through business chambers and in private sessions in a number of countries in Southeast Asia, disseminating information on the latest issues and risk mitigation strategies advised by the Australian Government. Refresher courses were also provided to Austrade staff on the risks that working in corrupt markets pose to the Government.
MANAGEMENT AND ACCOUNTABILITY
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Corporate Governance Forum
Austrade is a member of the Corporate Governance Forum, an initiative it originally developed in 2009, which aims to assist Australian Government agencies to achieve best practice in governance through the exchange of knowledge and ideas.
Agencies hosted four forum meetings during the year covering the following topics:
⺠governance in action—Department of Human Services’ governance and preparations for the commencement of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) on 1 July 2014
⺠governance committees and briefings ⺠progress of the PGPA Act and Governance Better Practice Guide
⺠parliament governance and accountability.
The independent chair of Austrade’s Audit and Risk Committee, David Lawler, presented at the November 2013 forum on governance committees and briefings.
Austrade has benefited from maintaining an active role in the forum’s organising committee and continues to participate in the forum to further enhance its own risk culture, refine its audit practices and improve its corporate policy framework.
Chief Executive Officer
The CEO has overall responsibility for the management of Austrade and reports directly to the Minister for Trade and Investment. The functions and duties of the CEO are established through the Australian Trade Commission Act 1985.
The Minister for Trade and Investment may give the CEO directions with respect to the performance of his functions and the exercise of powers. No ministerial directions were issued in 2013-14.
Austrade’s Executive Group
Austrade’s Executive Group considers key management issues, strategic priorities, and corporate, operational and divisional plans, as well as corporate policy and operational issues, and provides advice to the CEO. The group’s members are: Austrade’s CEO (chair); executive directors; Chief Human Resources and Change Management Officer; and Assistant General Manager, Strategy, Governance and Media. The Executive Group met 35 times in 2013-14.
To increase the opportunity for women to participate in high-level decision-making within Austrade, the CEO invited two high-potential Australia-based female staff members to attend Executive Group meetings (one Senior Executive Service employee and one non-Senior Executive Service employee, to be rotated every 12 months). Deborah Lewis, General Manager, Tourism, and Cheryl Stanilewicz, State Director, Queensland, have attended Executive Group meetings since December 2013.
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Austrade’s Executive Group (L-R): Laurie Smith; Lynne Ashpole; Peter Yuile; Bruce Gosper; Tim Beresford; and Marcia Kimball.
Bruce Gosper—Chief Executive Officer Responsible for the management of Austrade and reports directly to the Minister for Trade and Investment.
Bruce has been Austrade’s CEO since 1 February 2013. From 2009 until his appointment to Austrade, Bruce was a Deputy Secretary in the Department of Foreign Affairs and Trade, where he was the Australian Government’s senior trade policy official, responsible for all trade negotiations. Bruce has worked extensively on the Government’s trade and commercial relationships, both in Australia and overseas, during his more than 30 years of government service.
Laurie Smith—Executive Director, International Operations Group Responsible for Austrade’s offshore network and its International Issues branch.
Laurie has 30 years’ experience in international corporate, advisory and government roles, including assignments in Hong Kong, Guangzhou, Beijing, Taipei and Shanghai. Laurie has held senior roles with a major multinational corporation in Hong Kong and Beijing. He led the company’s China business development, overseeing direct and portfolio investments in China. His early career was with the departments of Trade and Foreign Affairs and Trade in Canberra and Taipei. He is fluent in Mandarin.
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Tim Beresford—Executive Director, Australian Operations Group Responsible for the three key business areas of Trade, Investment, and Marketing, Online and Business Practice.
Before joining Austrade, Tim worked at the Department of the Prime Minister and Cabinet where he co-led the negotiation and delivery of the National Health Reform Agreement with all states and territories. Tim has previously held a number of roles in Westpac Banking Corporation and was a management consultant for 10 years, where he worked for McKinsey & Company on strategic, operational and organisational issues.
From 2003 to 2012, Tim was on the board of Plan Australia International, holding positions including Chair, Fundraising and Marketing Committee; and Chair, Corporate Governance Committee. In February 2013, he joined the board of The Benevolent Society.
Peter Yuile—Executive Director, Tourism, Education and Corporate Operations Group Responsible for Tourism; International Education; the Export Market Development Grants scheme; Consular and Business Services; Finance; Information Technology Services; Legal, Security and Procurement; and Ministerial, Parliamentary and Portfolio Coordination.
Peter has had a distinguished career in the Australian Public Service, holding senior positions in various departments, where he had responsibility for issues such as the development of bilateral trade strategies, regional forest agreements, fisheries negotiations with Japan, and bilateral agricultural and resource issues. Peter has also worked in the Department of Trade (in its various forms) and the Department of Foreign Affairs and Trade.
Marcia Kimball—Chief Human Resources and Change Management Officer Responsible for national and international human resource management; strategy, systems and services; and capability and talent.
For 14 years, Marcia has managed Austrade’s team of human resources professionals across its international network encompassing attraction and retention, strategy and policy, systems and reporting, capability and talent. Before joining Austrade, Marcia was the Executive Director, Corporate Development for the Civil Aviation Safety Authority, and also worked in management roles for more than a decade within the broader AirServices Australia. She began her career in education and professional development, leaving the teaching service at a senior level in the late 1980s.
Lynne Ashpole—Assistant General Manager, Strategy, Governance and Media55 Responsible for corporate governance; internal audit; corporate planning and strategy; and Austrade’s media unit.
Lynne has worked in private sector law firms and as a government lawyer in the Commonwealth Attorney-General’s Department. She was a principal policy officer in the NSW Ministry for Police and the NSW Cabinet Office. She also worked as a senior adviser to ministers in New South Wales, the Northern Territory and the Commonwealth in a wide variety of economic and social policy portfolios, and was the inaugural director of the NSW Better Regulation Office.
55 S tefan Trofimovs held the position of Acting Assistant General Manager, Governance, Analysis and Planning, until 1 July 2013. Lynne Ashpole commenced in the role of Assistant General Manager, Strategy and Governance, on 30 July 2013. In early 2014, this role was expanded to include oversight of Austrade’s media unit and the title was changed to ‘Assistant General Manager, Strategy, Governance and Media’ to reflect this additional responsibility.
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Audit and Risk Committee
The Audit and Risk Committee’s role is to provide independent assurance and advice to the CEO on Austrade’s risk, control, compliance and external accountability responsibilities. The committee’s processes are consistent with the Australian National Audit Office (ANAO) better practice guide titled Public sector audit committees: independent assurance and advice for chief executives and boards—August 2011.
The committee consists of two independent members and three internal Austrade members. The independent members for 2013-14 were David Lawler (chair) and Jennifer Clark. The three internal Austrade members were the Executive Director, Australian Operations; the General Manager, Established Markets; and the Assistant General Manager, Marketing and Communications, whose appointment commenced in January 2014. The committee met five times during 2013-14.
Ethics Committee
The Ethics Committee promotes high standards of ethical behaviour throughout Austrade, provides clear and consistent guidance on standards of conduct, and evaluates the effectiveness of Austrade’s policies and practices in relation to ethical behaviour. The committee provides independent assurance and assistance to the CEO on Austrade’s ethical framework.
The committee consists of an independent member, Jeff Lamond (chair); Austrade’s Chief Human Resources and Change Management Officer; and a cross-section of Austrade’s senior management from onshore and offshore offices. The Assistant General Manager, Legal, Security and Procurement, is designated as Chief Ethics Officer and is an ex officio member of the Ethics Committee. The committee met twice in 2013-14.
Management subcommittees
Members of Austrade’s Executive Group chair subcommittees on workplace relations, security, and business improvement priorities and initiatives. Those subcommittees support governance, inform operations, and provide mechanisms for consultation and communication with staff.
Austrade’s committees and subcommittees in 2013-14, and their roles, activities and participants, are listed in Table 18. Austrade’s executive management structure and reporting relationships are shown in Figure 23.
Corporate planning
The Australian Trade Commission Act 1985 requires the CEO to prepare a corporate plan each year and to submit the plan to the Minister for Trade and Investment. The plan sets out the key strategies that Austrade will pursue to achieve the outcomes and priorities set by the Australian Government. Austrade’s planning and performance management practices align its activities and resources to deliver those priorities. Planning is conducted within the framework of Austrade’s strategic operating environment, and seeks to ensure that Austrade provides maximum value to the Government and to Australian businesses and institutions, while ensuring the highest ethical standards.
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Table 18: Austrade’s committees and subcommittees in 2013-14
Committee Role and activities Participants at 30 June 2014
Executive Group (met 35 times in 2013-14)
Considers key management issues, strategic priorities, and corporate, operational and divisional plans, as well as corporate policy and operational issues, and provides advice to theCEO
CEO (chair); executive directors; Chief Human Resources and Change Management Officer; and Assistant General Manager, Strategy, Governance and Media
Audit and Risk Committee (met five times in 2013-14)
Considers governance arrangements and provides independent advice and assurance to the CEO on risk management, compliance and external accountability
Independent members: David Lawler (chair) and Jennifer Clark. Internal members: Executive Director, Australian Operations; General Manager, Established Markets; and Assistant General Manager, Marketing and Communications
Ethics Committee (met twice in 2013-14)
Promotes high standards of ethical behaviour throughout Austrade Independent member: Jeff Lamond (chair). Internal members: Chief Human
Resources and Change Management Officer; Assistant General Manager, Legal, Security and Procurement; and a cross-section of senior managers from onshore and offshore
Subcommittee
Business Advisory Group Oversees and coordinates significant cross-organisational projects to
ensure the successful delivery of Austrade’s outcomes
Executive Director, Australian Operations (chair) and management representatives
Security Advisory Group Provides advice on the management of security issues, including policy,
planning and risk management. Also considers specific security issues in business units and overseas offices
Executive Director, Tourism, Education and Corporate Operations (chair); Chief Human Resources and Change Management Officer; General Manager, Programmes, Consular and Business Services; General Manager, Growth and Emerging Markets; Chief Information Officer; Agency Security Executive; Assistant General Manager, Legal, Procurement and Security; and Agency Security Adviser
Workplace Relations Committee
Provides advice and consults with staff and management on workplace relations and change management issues
Chief Human Resources and Change Management Officer (chair), managers and Austrade Performance Level 1-5 staff representatives
Australian Trade Commission Annual Report 2013-14 138
Figure 23: Austrade’s executive management structure
Parliament
Minister
CEO
Audit and Risk Committee
Ethics Committee
Executive Group
Business Advisory Group
Security Advisory Group
Workplace Relations Committee
Performance management framework
To monitor overall organisational performance, Austrade’s performance management framework links the key performance indicators in Austrade’s Portfolio Budget Statements with more detailed internal reporting measures. This framework ensures that Austrade’s activities are aligned to achieving defined operational objectives, while incorporating measures to monitor stakeholder satisfaction, internal governance, and resources and capability.
Staff performance agreements
Staff performance agreements are made on an annual basis, covering the period from 1 July to 30 June each year. The agreements are consistent with the market and business plans of the unit in which the individual staff member works, as well as with Austrade’s performance management framework. For more information on staff performance agreements, see page 147.
‘ Austrade’s performance framework ensures its activities are aligned to operational objectives.’
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Employee communications
Austrade’s governance arrangements are designed to ensure effective decision-making and communication of corporate governance and organisational priorities. During 2013-14, staff received information on a wide range of corporate issues, including Austrade’s global themes and priorities; work health and safety compliance; anti-bribery policies; fraud prevention awareness; security issues; executive meeting outcomes; and the components of the 2013-14 Budget that were relevant to Austrade.
The methods used to communicate corporate information to staff included:
⺠CEO and corporate messages delivered via email
⺠tailored messages from executive directors, general managers, line managers and various team meetings
⺠a weekly online newsletter, Global News ⺠presentations to onshore staff from visiting offshore staff through the ‘Stay in Touch’ programme
⺠Austrade’s new global intranet, ‘The Hub’, launched in July 2013, which provides a single location for collaboration and information-sharing.
Corporate training programmes, including pre-posting training, induction training and online modules, were used throughout 2013-14 to keep staff informed and aware of current corporate policies and procedures.
Each year, all Austrade staff are required to complete an Austrade corporate policy refresher online module. Key policy focus areas covered in the module in 2013-14 included work health
and safety, anti-bribery, corporate governance, procurement, Austrade services, security, finance and ethical business behaviour.
RISK MANAGEMENT Throughout 2013-14, Austrade continued to manage its exposure to risk and mitigate adverse consequences through the implementation of risk management principles and practices, as outlined in the Chief Executive’s Instruction on risk management and the corporate governance framework.
The Agency Risk Management Plan 2013-14 was prepared in accordance with the risk management standard ISO 31000:2009. The plan identifies key risks with the potential to affect Austrade’s ability to achieve the objectives and priorities set out in its corporate plan.
Risks identified in the plan covered strategic risks, including the evolution and development of services; models and channels to meet contemporary needs; transitional processes, such as the transition of the Tourism Division to Austrade from the former Department of Resources, Energy and Tourism; and operational and corporate risks, including a range of security risks, and issues such as effective business continuity and emergency management.
Austrade managers develop mitigation strategies and actions for identified agency risks, and report progress against these mitigation strategies to the Audit and Risk Committee on a quarterly basis. This assists in providing assurance to the CEO that risks are being managed and monitored.
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Austrade continues to participate in the Comcover Benchmarking Survey. Austrade’s participation has achieved year-on-year improvements (Table 19), and the agency continues to have a risk maturity rating of ‘structured’.
Table 19: Comcover Benchmarking Survey risk maturity rating for Austrade, 2011 to 2014
2011 2012 2013 2014
Rating (on scale of 1 to 10)
7.2 7.4 7.7 7.9
Internal controls
The Audit and Risk Committee and the internal auditor have noted the mature nature of Austrade’s internal control framework. The main features of the internal control framework include:
⺠policies and procedures, including Chief Executive’s Instructions, which support compliance with legislative and administrative requirements
⺠a positive compliance and management environment supported by an effective schedule of delegations
⺠an effective internal audit function that seeks to appropriately balance performance and compliance audits
⺠an effective risk management framework, including fraud control, risk management plans, security and business continuity management and disaster recovery
⺠compliance with Australian Public Service (APS) Values and Code of Conduct and the Financial Management and Accountability Act 1997
⺠monitoring controls through effective planning at the corporate, operational and business unit levels, reviews of business units and ongoing budget management
⺠accountability mechanisms, including reports, reviews and individual performance management arrangements.
Fraud control
Austrade maintains fraud prevention, detection, investigation and reporting procedures and processes that are compliant with the Commonwealth Fraud Control Guidelines.
A revised fraud control plan, effective from 2013 to 2015, has been endorsed by the Audit and Risk Committee and is consistent with the Australian standards applying at the time of endorsem*nt (AS/NZS ISO 31000:2009 Risk Management and AS 8001:2003 Fraud Corruption and Control). A principles-based ethics and integrity approach underpins the strategies of awareness, prevention, identification, reporting, prosecution and continuous improvement.
This approach includes an anti-bribery and corruption awareness programme for all staff and a review of the fraud control plan following the integration of the Tourism Division within Austrade. An Austrade all-staff fraud awareness survey was conducted in December 2013.
Internal audit
The activities of Austrade’s internal auditor are defined by an annual internal audit plan endorsed by the Audit and Risk Committee and the CEO. All significant Austrade activities are considered to be within the ambit of the approved internal audit. The internal audit plan seeks to coordinate internal
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audit activity with other assurance activities and mechanisms, including external audits and ANAO better practice guides.
During the year, 20 compliance and performance-based audits and reviews were undertaken by Austrade’s internal auditor, PricewaterhouseCoopers, which observed that Austrade has a strong system of internal controls and operates within a mature control framework, and noted that no serious control breakdown had been identified.
LEGISLATIVE FRAMEWORK AND EXTERNAL SCRUTINY This section outlines the legislative framework and external scrutiny mechanisms under which Austrade operates.
Legislation
Austrade operates under the following legislation:
⺠Australian Trade Commission Act 1985— defines the functions, duties and powers of the Chief Executive Officer and the Commission
⺠Export Market Development Grants Act 1997— provides for the Export Market Development Grants scheme, the Government’s principal export market assistance programme, which is administered by Austrade
⺠Financial Management and Accountability Act 1997—provides the framework for the proper management of public money and public property
⺠Public Service Act 1999—governs the establishment and operation of, and employment in, the APS.
Independent audits
Austrade was not the subject of any reports tabled by the Auditor-General in Parliament during 2013-14, but was surveyed and provided supporting documentation as part of an across-agencies performance audit—Managing Conflicts of Interest in FMA Agencies (Audit Report No. 47 2013-14).
ANAO better practice guidelines encourage agencies to consider relevant ANAO reports tabled for other agencies, with the aim of improving public administration across Australian Government agencies. During the reporting period, Austrade considered five ANAO reports tabled by the Auditor-General that were assessed as relevant to Austrade operations:
⺠Agencies’ implementation of performance audit recommendations
⺠The Australian Government Performance Management and Reporting Framework—pilot project to audit key performance indicators
⺠Confidentiality in government contracts: Senate Order for department and agency contracts (calendar year 2012 compliance)
⺠Management of complaints and other feedback ⺠Administration of government advertising arrangements: August 2011 to March 2013.
Austrade’s management also reviewed three better practice guides:
⺠Human resources management information systems: risk and controls
⺠Preparation of financial statements by public sector entities
⺠Implementing better practice grants administration.
Austrade also made recommendations to the Audit and Risk Committee on ways to improve Austrade’s internal controls framework.
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Judicial decisions and reviews by outside bodies
During the reporting period, there were no judicial decisions or reviews by outside bodies that had a significant impact on the operations of Austrade. Austrade’s input to parliamentary inquiries and briefings is discussed on page 79 .
Details of appeals to the Administrative Appeals Tribunal under the Export Market Development Grants Act 1997 are shown on page 94 (Table 10). One decision of the tribunal, involving appeals under the Export Market Development Grants scheme, was referred to the Federal Court on appeal during 2013-14. Any grant amounts payable as a result of a successful appeal are payable from the administered account and not from Austrade’s departmental budget.
Privacy
Austrade received no complaints under the Privacy Act 1988 during 2013-14.
Training on the Commonwealth Privacy Principles and Austrade’s own privacy policies was provided as part of regular corporate training throughout the year, including induction training and training for staff being posted overseas.
In addition, following changes to legislation governing privacy laws, Austrade policy and practice was revised and staff were required to complete a policy refresher course, which included a section on privacy.
Freedom of information
Agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme. This requirement is in Part II of the FOI Act, which has replaced the
formal requirement to publish a section 8 statement in an annual report. Austrade meets its obligations under the FOI Act by displaying on its website, www.austrade.gov.au, a plan showing what information is published in accordance with the requirements of the Information Publication Scheme.
MANAGEMENT OF HUMAN RESOURCES At 30 June 2014, Austrade employed 1,032 staff, 74 per cent of whom were employed in client-focused operations in Australia and overseas. Staff turnover was 13.5 per cent compared with 10.5 per cent in 2012-13. The gender balance was 45 per cent male and 55 per cent female. Further staffing information is provided in Appendix A.
Austrade’s human resources strategy aims to address key organisational capability and capacity challenges for the agency, and ensure compliance with governance requirements as well as alignment with leading practices in people management. The strategy is framed against six key result areas, which are discussed below.
Organisation and workforce design
Organisational design continued to be a strong area of focus for Austrade throughout 2013-14. The Human Resources Division worked closely with all areas of the agency to create effective and efficient work teams aligned with organisational priorities. This included the implementation of a new team structure for Austrade’s Trade Division and the transfer of staff from the former Department of Resources, Energy and Tourism following machinery-of-government changes.
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A voluntary redundancy programme was put in place in early 2014 for Australia-based staff, in line with the Government’s commitment to reduce the APS staffing profile in order to meet future budget challenges.
Organisational capability
Attracting, retaining and deploying the right people with the right skills is critical to the delivery of Austrade’s organisational objectives. Strengthening Austrade’s culture, developing capabilities and maximising resources remained a priority for Austrade during 2013-14.
Austrade staff collectively completed 1,060 internally provided learning and development programmes and 4,240 e-learning courses.
The following statistics illustrate the variety and uptake of learning and development programmes during the year:
⺠62 new staff attended Austrade’s induction programme, 33 of whom were based in Australia and 29 were based offshore
⺠14 trade commissioners participated in pre-posting training
⺠20 staff participated in Austrade’s internal leadership and management development programme
⺠35 staff participated in women’s mentoring programmes
⺠133 staff attended an employee-focused ‘Wellbeing and resilience in the workplace’ programme in Australian offices
⺠20 Export Market Development Grants scheme staff attended a ‘Manager as coach’ workshop
⺠31 staff participated in inward investment skills workshops
⺠21 staff participated in security training
⺠39 offshore staff participated in workshops to develop problem-solving and consultative skills
⺠1,032 staff completed a compulsory annual policy refresher e-learning course
⺠1,032 staff completed the ‘Closing the gap’ Indigenous awareness e-learning course
⺠215 staff accessed business writing skills e-learning courses
⺠343 staff accessed Harvard ManageMentor e-learning courses to develop leadership and core business skills
⺠105 staff accessed Microsoft e-learning courses.
Scholarships
The following scholarships were awarded during the year as part of Austrade’s scholarship programme:
⺠Beryl Wilson Austrade Scholarship for Women in International Business—This scholarship was established in November 2013, in recognition of Beryl Wilson, who was appointed in 1963 as Australia’s first female trade commissioner. The scholarship is awarded to a female student enrolled full-time in postgraduate international business studies. The inaugural winner, Louise Clunies-Ross from Perth, was announced by the Hon Andrew Robb AO MP, Minister for Trade and Investment, in February 2014. For further information, see page 33.
⺠Overseas-Engaged Employees’ Scholarships— Introduced in 2013, these scholarships provide opportunities for staff to undertake development programmes at recognised education institutions to enhance their skills and capabilities in international trade, leadership and strategy. Five overseas-engaged employees from India, the United States, Vietnam, Japan and Singapore were the inaugural recipients of
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the scholarships. They are undertaking further study in areas such as leadership and global strategic management.
⺠Asialink Leaders’ Scholarships—Austrade continued its involvement in the Asialink Leaders’ Programme, providing three Australia-based staff with scholarships to participate in the 2014 programme. The programme helps to build knowledge of contemporary Asian societies and business culture and enhances recipients’ cultural intelligence skills to help them more effectively manage the complexity of Australia-Asia relations.
⺠Austrade Craig Senger Scholarship—The annual Austrade Craig Senger Scholarship, established jointly with Monash University in memory of Craig Senger, former Trade Commissioner in Jakarta, was awarded to Melissa Paciepnik. Melissa will begin an internship with Austrade in its Melbourne office in late July 2014.
L-R: Kate Senger with the winner of the 2014 Austrade Craig Senger Scholarship, Melissa Paciepnik.
Deployment and mobility
Austrade’s secondments programme provides staff with the opportunity to undertake short-term placements with other government organisations and industry associations both in Australia and overseas. These secondments help staff to develop a greater understanding of Australian industry capability and the export sector onshore, or a greater understanding of key industry sectors, government priorities and Austrade’s work offshore.
In 2013-14, four overseas-engaged employees participated in secondments in Australia with Meat & Livestock Australia, the Australian Industry Group, the Chamber of Commerce and Industry of Western Australia and the South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy. Two Australia-based employees participated in secondments overseas with the Confederation of Indian Industry in Ahmedabad and the Consejo Empresarial Mexicano de Comercio Exterior, Inversión y TecnologÃa in Mexico City.
Short-term overseas assignments in Australian and overseas offices meet operational requirements while also providing both onshore and offshore staff with significant development opportunities. In 2013-14, 29 staff participated in short-term overseas assignments, 10 of whom were assigned to Asian offices.
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Trade Commissioner Development Programme
The two-year Trade Commissioner Development Programme develops the strategic, leadership, communication and tradecraft skills required to be a high-performing trade commissioner. Now in its second year, the programme gives participants the opportunity to experience how trade commissioners develop Australian business internationally. The programme consists of a three-month onshore component followed by a two-year offshore placement as an assistant trade commissioner. Throughout the programme, participants undertake a range of learning activities based on Austrade’s 70/20/10 development approach, where 70 per cent of learning is on the job, 20 per cent is through coaching and feedback, and 10 per cent is through formal courses and reading.
During 2013-14, the first cohort of the Trade Commissioner Development Programme progressed to the second year of the programme. Four participants were placed in Dubai, Jakarta, Kuala Lumpur and Osaka in 2013.
The second cohort commenced in April 2014 with four participants. Three of the participants start their offshore placements in July 2014 in the Frankfurt, Hong Kong and Johannesburg offices. The fourth participant will start in the Manila office in 2015.
Alexandra Chittenden Trade Commissioner Development Programme, Frankfurt
Alexandra will be stationed at Austrade’s Frankfurt office from July 2014, where she will be participating directly
in daily post operations and will also be supporting the passports and consular team. She holds degrees in economics and arts (applied linguistics) from the Australian National University and has studied German and Arabic.
She said, ‘I am really looking forward to learning more about Austrade’s work in the investment attraction space from such an experienced team. One key skill that I will be taking to Frankfurt is being able to multi-task. This will come in handy given the broad scope of responsibilities at the post’.
Alexandra began her career at Austrade as an economic analyst in the Sydney office, and served as Executive Officer in Austrade’s Growth and Emerging Markets team. In that role, she provided operational, analytical and policy support and was the link between onshore and offshore teams in the region.
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Building cross-cultural and language capabilities
Austrade continued its investment in developing cross-cultural and language capabilities in its people. A range of measures have been put in place to enhance staff capabilities and improve their awareness and knowledge of the issues of working and managing across cultures, including cross-cultural workshops and access to a suite of cross-cultural resources and online tools.
Austrade’s language policy continues to encourage, reward and support staff in the maintenance of languages important to Austrade’s business requirements. Austrade’s priority languages are Arabic, Indonesian, Cantonese, Hindi, Japanese, Mandarin and Spanish (Table 20).
Table 20: Foreign language capabilities at Austrade—priority languages at 30 June 2014
Language
Total number of speakers
Arabic 10
Bahasa Indonesian 22
Cantonese 31
Hindi 20
Japanese 62
Mandarin 91
Spanish 53
Total 289
Induction
Austrade’s induction programme for new staff involves a range of learning activities based on Austrade’s 70/20/10 development approach. Staff
complete a curriculum of e-learning courses to complement on-the-job training, before attending a four-day induction workshop in Australia.
In 2013-14, 62 new staff attended induction workshops. Of these staff, 29 were based offshore and 33 onshore.
To support the transition of staff from the Tourism Division of the former Department of Resources, Energy and Tourism to Austrade, a customised induction programme was delivered to 80 staff in early 2014, consisting of a combination of briefings, training and e-learning programmes.
Mentoring
In 2013-14, Austrade redeveloped its mentoring framework and reviewed individual mentoring programmes to assess their effectiveness and value. Staff continued to have access to a range of programmes, including individual and women’s mentoring programmes. These programmes provide participants with a formal structure for addressing specific work, career and development issues, as well as supporting additional global networking.
Management and leadership development
Building future leadership capability is a key priority for Austrade. In 2013-14, Austrade’s internal leadership and management programme, Achieving Austrade’s Priorities, was completed by 20 staff at Austrade Performance Level (APL) 3 and 4 and Austrade Overseas Performance Level (AOPL) 3 and 4. Participants were from 10 countries. The six-month programme included a work-based project and two residential workshops.
Austrade also provided opportunities for leadership and management development for its Senior Executive Service (SES) and high-potential APL 4 and 5 managers. Opportunities
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included attendance at targeted Australian Public Service Commission programmes, formal external programmes provided by executive business schools, short-term assignments, coaching and mentoring.
SES and selected APL 4 and 5 managers also had the opportunity to obtain targeted developmental feedback through participation in Austrade’s 360-degree survey programme.
Talent management
Austrade’s talent management process provides a formal framework for defining, identifying, developing and deploying high-potential talent to meet Austrade’s organisational and strategic goals.
During 2013-14, initiatives included the development of comprehensive talent profiles based on data from multiple sources for SES Band 1 and 2 and a range of non-SES employees, predominantly at the APL 4 and 5 levels. Succession plans were developed for identified critical roles, and targeted development opportunities and training were provided to selected staff to support the succession plans.
Employment frameworks
Austrade’s employment frameworks comply with government policy and meet legal requirements in Australia and in the other countries in which Austrade employs staff. The frameworks reflect good practice, ensure a positive work environment for staff and provide competitive conditions of service to employees across the range of markets in which Austrade operates.
To ensure that Austrade continues to meet employment law requirements, contracts of employment for overseas-engaged employees were reviewed across a number of locations during the year.
Austrade’s SES employees and overseas-engaged employees are employed under individual employment contracts. Australia-based non-SES employees are covered by the Austrade APL 1-5 Enterprise Agreement 2012-2014, which has a nominal expiry date of 30 June 2014.
The Workplace Relations Committee, which represents Austrade’s Australia-based APL 1-5 employees, met four times during the year for consultations between management and employee representatives on workplace matters. The committee’s consultations covered a wide range of workplace issues, including Austrade’s financial position, the management of structural changes, and the Government’s bargaining policy for the next enterprise agreement. A subcommittee of the Workplace Relations Committee developed the Austrade Diversity Plan 2014-2017, which has been published on the Austrade website, www.austrade.gov.au.
Staff consultations for the next enterprise agreement occurred in May 2014. The existing agreement remains in place until a new one is agreed by staff and approved by the Fair Work Commission.
Managing and recognising performance
In 2013-14, performance plans were based on Austrade’s performance management framework to ensure that individual activity was aligned with the achievement of organisational objectives and deliverables.
As in previous years, the focus was on operational delivery and results, client and stakeholder value, governance and compliance, leadership, corporate citizenship, and capability and resource management. Managers and staff were provided with guidance on recognising and rewarding
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behaviours and outcomes that contribute to organisational priorities and that are consistent with the APS Values and Employment Principles.
Performance bonus payments
Performance bonus payments for overseas-engaged employees were removed from July 2013 to align with arrangements for APL 1-5 and SES employees. However, overseas-engaged employees employed for longer than 12 months were still eligible for bonus payments
in 2013-14 for performance in the 2012-13 performance cycle.
Depending on performance outcomes, overseas-engaged employees could receive a bonus payment of between 2 per cent and 12 per cent of their base annual salary.
A total of 404 overseas-engaged employees received payments in 2013-14 for the 2012-13 performance cycle, with the average amount payable across the classifications ranging from $81 to $16,821. For more information, see Table 21.
Table 21: Overseas-engaged employee performance pay by level, 2012-13 performance cycle (paid in 2013-14)
Austrade designation
Number of payments
Aggregated amount ($’000)
Average amount ($)
Range of payments ($)
AOPL 1 14 5 405 111 - 1,010
AOPL 2 54 73 1,360 115 - 5,530
AOPL 3 149 305 2,050 81 - 11,804
AOPL 4 160 484 3,027 202 - 12,401
AOPL 5 27 162 6,029 793 - 16,821
Total, overall average/range
404 1,036 2,565 81 - 16,821
Note: Low minimum payment figures are due to the payment of pro-rata bonuses to staff who worked only part of the performance cycle. AOPL 1-5 bonus paid on ‘fully proficient’ to ‘exceptional’ rating. APL 1-5 bonuses were not payable.
Employee recognition
Austrade’s internal employee recognition programme is designed to ensure that excellence continues to be acknowledged and rewarded throughout the agency.
In May 2013, the CEO announced a revised employee recognition programme that came into effect for 2013-14. Following consultation and
feedback from staff, a range of new recognition initiatives were implemented, including:
⺠career development workshops for staff and managers in Australia and overseas
⺠the overseas-engaged employee scholarship programme
⺠secondments to state governments and industry associations
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⺠short-term overseas assignments for overseas-engaged employees
⺠an enhanced study assistance programme.
Global Austrade Staff Awards
The Global Austrade Staff Awards recognise outstanding performance by individuals and teams in four categories:
⺠promoting a team approach and spirit through their actions
⺠delivering value to stakeholders ⺠exemplary leadership ⺠working in the national interest.
In 2013-14, six individuals and five teams received awards:
⺠Amanda Hodges, Dubai ⺠Wendy Williams, Canberra ⺠Tomoko Ichikawa, Tokyo ⺠Stuart Rees, Melbourne
⺠Melissa Kuzareveski, Sydney ⺠Winnie Tang, Hong Kong ⺠Ozmine 2013 Indonesia team ⺠Resource and Infrastructure team
⺠Study in Australia Website Redevelopment team ⺠Finance and Risk Reporting team ⺠North Asia - Australian Teaching and Learning Showcase team.
Australia Day Achievement Awards
In 2013-14, Austrade again participated in the APS-wide Australia Day Achievement Medallion programme. The programme acknowledges the achievements of public servants, either on special projects that have made a significant contribution to the nation, or through outstanding performance
in their core duties. Australia Day Achievement Medallions were awarded to 10 Austrade employees in January 2014:
⺠Betty Cook, Sydney ⺠Charles Kang, Seoul ⺠David Samuel, Colombo ⺠Deviana Nugraeni, Jakarta
⺠Frances Leadbeter, Sydney ⺠Kumar Sreekumar, Riyadh ⺠Marie Hill, Melbourne ⺠Mark Wood, Yangon
⺠Norma Ramiro, Buenos Aires ⺠Yuling Zhang, Guangzhou.
Culture and values
During the year, Austrade’s Australia-based and overseas-engaged employees participated in the Australian Public Service Commission’s 2014 State of the Service employee census and survey. The results will be published early in 2014-15.
The results of the 2013 survey, which were released in 2013-14, demonstrated that staff continue to be engaged with and committed to Austrade. Compared to the wider APS, Austrade staff members reported higher levels of job and agency engagement and were also more likely to indicate their intent to remain with the agency during the next two years. Staff were also positive about Austrade’s ethical behaviour and leadership, and the quality and visibility of senior leaders.
Austrade’s Ethics Committee met twice during the year to review Austrade’s ethical framework and monitor the effectiveness of management programmes to foster ethical behaviour, such as online governance training. The committee also reviewed relevant Austrade policies, such as the
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policy and procedure for the management of public interest disclosures. For more information on the Ethics Committee, see page 136.
Work environment
Austrade continued to promote a strong safety culture throughout 2013-14. During the year, Austrade successfully completed its Work Health and Safety Management System to meet the Australian standard and the requirements of the Work Health and Safety Act 2011. In accordance with Schedule 2, Part 4 of the Act, details of Austrade’s work health and safety initiatives, outcomes, statistics and investigations, where relevant, are reported in Appendix D. Austrade also undertook a range of activities during the year to ensure compliance with the Act. These are also reported in Appendix D.
Workplace diversity
Throughout the year, a subcommittee of the Workplace Relations Committee, in consultation with managers and staff, developed Austrade’s Workplace Diversity Action Plan 2014-2017. The plan focuses on practical actions to recognise and promote diversity in employment and increase employment opportunities available to Indigenous Australians and people with disability, as well as to improve the representation of women in senior management roles.
To assist with the career development of women at Austrade, the CEO announced during the year that female managers would participate in Executive Group meetings on a rotational basis. Cheryl Stanilewicz, State Director, Queensland and the Northern Territory, was the first female
non-SES manager to participate in the Executive Group under this initiative. Deborah Lewis, General Manager Tourism, has also participated in Executive Group meetings. Through their participation, Cheryl and Deborah have represented women in operational management at strategic discussions and have been role models for other female managers in the agency.
Indigenous Australian Government Development Programme
The Indigenous Australian Government Development Programme is designed to encourage Aboriginal and Torres Strait Islander people to seek employment in the APS. The programme combines practical work experience with the ability to gain a diploma-level qualification in a nominated area. In addition to ongoing employment, during the programme, participants are provided with professional and personal development opportunities to further enhance their capability to undertake a career in the APS.
Austrade’s Indigenous cadet engaged under the programme in 2012-13, Naomi Smith, has been appointed to the position of assistant procurement officer with Austrade. Austrade is committed to continuing participation in the programme, and in 2013-14, engaged another cadet, Emma Johnston, to work as part of the International Education team. Austrade is working towards increasing Aboriginal and Torres Strait Islander people’s workforce participation to 2.7 per cent of its overall workforce.
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Indigenous Cadetship Support Programme
An Australian Government initiative, the Indigenous Cadetship Support Programme improves the professional employment prospects of Aboriginal and Torres Strait Islander peoples. It links Aboriginal and Torres Strait Islander tertiary students with employers in a cadetship arrangement involving full-time study and negotiated work placements.
The programme helps Aboriginal and Torres Strait Islander university students to gain the professional qualifications and experience needed for a range of jobs in the private, public and community sectors, and assists them to move into employment on completion of their studies.
Austrade was the first government agency to engage a cadet under the programme, providing a placement to Bryce Sentance in its Strategy and Governance team within the CEO’s office in Sydney. Austrade aims to continue its participation in the programme and planning is underway to provide an opportunity for a summer internship.
Reconciliation Action Plan
Austrade recognises the importance of working towards achieving recognition, respect and change for Aboriginal and Torres Strait Islander peoples. In 2013-14, Austrade implemented a Reconciliation Action Plan (RAP), which has been endorsed by Reconciliation Australia. The RAP provides a platform for Austrade to demonstrate its commitment to raising awareness and applying the principles of reconciliation in the workplace.
Austrade’s RAP aims to bring together Indigenous and non-Indigenous staff to learn more about each other, to promote awareness and realise the advantages in developing a diverse workforce. Austrade has also developed an Indigenous portal on its intranet that links to Indigenous resources
and helps raise awareness of Indigenous cultures. An online e-learning course, ‘Closing the Gap’, was completed by all staff this year, and now forms part of the induction of new staff.
As part of its RAP, Austrade commissioned an Indigenous artist to paint an original image reflecting Austrade’s business—the connection of businesspeople. The image, which appears on the front of the portal, is of a corroboree—a term that embraces songs, dances, events and meetings of various kinds. The hands on the image reflect the collaboration of many businesses coming together for trade (see page 152).
Wellbeing and resilience in the workplace
As part of Austrade’s commitment to health and wellbeing, a facilitator from Austrade’s employee assistance programme clinical development team conducted face-to-face workshops with staff in Australian offices during October 2013—Mental Health Month. The workshops were timed around World Mental Health Day and provided practical strategies to help increase individuals’ resilience to change and responsiveness to life events.
Disability employment programme
Austrade supports the ‘As One—Australian Public Service Disability Employment Strategy’, which seeks to strengthen the APS as an employer of people with disability.
Austrade has joined the Australian Network on Disability to provide practical work experience for university students with disability as part of its ‘Stepping into’ programme, a national initiative that provides the opportunity for students with disability to demonstrate their skills and knowledge in the field they are studying and to develop an understanding of the APS.
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Austrade provided a placement for an intern under the programme in its Information Technology Services Division during the 2013-14 university summer break. Prior to the placement, the division undertook disability awareness training conducted by the Australian Network on Disability. The successful completion of the internship was a positive experience for the university student and for staff of the division. Austrade is working towards continued participation in the ‘Stepping into’ programme for 2014-15 internship periods.
Changes to disability reporting in annual reports
Since 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy.
In 2007-08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010-11, departments and agencies were no longer required to report on these functions.
The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010-2020, which sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high-level two-yearly report will track progress against each of the six outcome areas of the strategy and present a picture of how people with disability are faring. The first of these reports will be available in late 2014 at www.dss.gov.au.
Austrade launches its first Reconciliation Action Plan In October 2013, Bruce Gosper, Austrade’s CEO, officially launched Austrade’s first Reconciliation Action Plan (RAP) in the Canberra office. He was joined by one of Canberra’s Aboriginal elders, Aunty Agnes Shea; Simon Gordon, General Manager Programmes, Reconciliation Australia; and Yidinji Joseph, a local Aboriginal artist whom Austrade commissioned to design the Aboriginal imagery to support its RAP. Yidinji and his son, Matthew Joseph, gave a moving didgeridoo performance at the launch.
The official launch of Austrade’s Reconciliation Action Plan in Canberra, October 2013. L-R: Naomi Smith, one of Austrade’s Indigenous cadets; Vickie Gouvoussis, Human Resources Adviser, Austrade; Marcia Kimball, Chief Human Resources and Change Management Officer, Austrade; Matthew Joseph, didgeridoo performer; Yidinji Joseph, Indigenous artist; and Bruce Gosper, CEO, Austrade.
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FINANCIAL MANAGEMENT AND BUSINESS ASSURANCE Austrade manages its assets and financial resources to support its operations by maintaining:
⺠an effective system of management and internal controls
⺠accounting, treasury and taxation services ⺠procurement systems and processes that achieve value for money
⺠business systems and processes that provide financial and performance information to enhance decision-making and the efficient, effective, economical and ethical use of resources
⺠information technology that is stable and secure and increases connectivity for staff, clients and key stakeholders
⺠systems to monitor, safeguard and enhance property and other assets.
Information on Austrade’s financial performance is provided on page 160.
Property management
Austrade manages an overseas and domestic property portfolio of 167 leased commercial and residential properties. The portfolio comprises properties leased from the Overseas Property Office in the Department of Foreign Affairs and Trade and from private sector landlords.
In 2013-14, 13 security and property fit-outs were completed, improving the safety and security of Austrade staff, customers and assets.
Austrade negotiated 57 new leases and renewed 53 leases as part of the ongoing management of its property portfolio.
Austrade manages its property portfolio in accordance with government policies and guidelines. Throughout the year, Austrade continued to identify opportunities for maximising efficiencies and cost-effectiveness. This was achieved by a combination of the appropriate rationalisation of surplus space and cost reduction in locations such as Austrade’s London, Melbourne, Suva and New York offices, while complying with work health and safety legislation and relevant building codes and standards.
Business continuity planning
Austrade’s business continuity framework was further strengthened in 2013-14. The agency’s programme of reviewing and scenario-testing business continuity plans, and drawing best practice and lessons learned from responses to incidents, continued to build resilience throughout the network. Collaboration across individual business units heightened staff awareness of potential risks and enhanced the development of efficient and effective response arrangements that support the continued sustainability of Austrade’s operations.
The framework’s effectiveness in mitigating the risks and minimising the impact of significant business interruptions was verified through Austrade’s response to several major incidents that required the activation of business continuity plans. In 2013-14, these included protests and civil unrest in Istanbul, Bangkok and Sao Paulo; smoke haze in Kuala Lumpur and Singapore; Typhoon Utor in Hong Kong and Typhoon Haiyan in Manila, Hanoi and Ho Chi Minh City; severe weather events in Toronto and Washington DC; and the evacuation of the Austrade Sydney office due to a fire on an adjacent building site.
Australian Trade Commission Annual Report 2013-14 154
Security
Austrade maintained its ongoing level of compliance with the Protective Security Policy Framework. During the year, Austrade continued its programme to implement a range of enhanced security measures, working closely with other government agencies, including the Department of Foreign Affairs and Trade, to manage a range of issues related to the personal safety and protection of Austrade staff, contractors and clients in Australia and overseas. Austrade also continued to work with the Australian Signals Directorate on issues of cybersecurity and the implementation of mitigation strategies to prevent cyber-attacks.
Legal services
In 2013-14, legal services to Austrade were provided primarily by its internal legal team, supported by external law firms. In June 2013, a multi-use list of prequalified law firms, split into four areas of legal expertise, was introduced as a whole-of-government initiative. Since the introduction of the multi-use list, Austrade has had access to prequalified providers, which has delivered cost savings and has helped rationalise the selection process. It has also provided Austrade with access to more detailed information, enabling more informed decisions in the purchase of legal services, and provided information to the Commonwealth on the quality of legal services engaged.
The same standards that apply to Austrade’s domestic legal service providers under the requirements of the Office of Legal Services Coordination have also been applied to all locally engaged international law firms providing services to Austrade’s overseas network.
The legal services provided to Austrade during the year covered a broad range of legal disciplines and represented an increase in volume, particularly with the additional responsibility for tourism programmes, policy and research, which transferred to Austrade from the former Department of Resources, Energy and Tourism in October 2013. Ongoing demand for services increased, particularly in relation to commercial advice and Export Market Development Grants litigation support. In other aspects, Austrade’s demand for legal services continued at similar levels as in recent years, including:
⺠complex contractual negotiations and drafting of agreements, including leases, service proposals and major programme arrangements, such as TradeStart, Asian Business Engagement Plan, section 23AF (tax exemption) and tourism grant programmes
⺠advice and application of policy on aspects of trade facilitation, financial services, education programmes and contractual arrangements
⺠handling of sensitive issues arising from labour claims, complaints from clients and commercial disputes, and issues arising from Austrade’s day-to-day delivery of its services
⺠training on compliance with anti-bribery laws ⺠freedom of information requests ⺠commercial litigation and appeals under the Administrative Appeals Tribunal Act 1975,
mainly involving applications under the Export Market Development Grants scheme
⺠advice on insurance, legislation, Austrade competitions and programmes
⺠monitoring and maintaining the quality and consistency of legal service to business units and Austrade’s international network in compliance with Office of Legal Services Coordination standards.
Part 03 / Management and accountability. Financial management and business assurance 155
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Purchasing
Austrade’s approach to procuring goods and services, including consultancies, is consistent with, and reflects the principles of, the Commonwealth Procurement Rules.
Austrade’s Chief Executive’s Instruction on procurement reflects these principles and the need for compliance with Commonwealth policy by all staff when choosing procurement methods, sourcing potential suppliers or entering into contracts. As part of these arrangements, in 2013-14, Austrade published details of:
⺠publicly available business opportunities with a value of $80,000 or more on AusTender (www.tenders.gov.au)
⺠actual contracts awarded with a value of $10,000 or more on AusTender
⺠actual contracts with a value of $100,000 or more on the Austrade website as required by Senate Order 192.
No contracts were let during 2013-14 of $100,000 or more which did not provide for the Auditor-General to have access to the contractor’s premises.
The CEO did not issue any directions under the FOI Act in 2013-14 exempting publication of details of any agency agreements or Commonwealth contracts on AusTender.
Information on publicly available business opportunities with an estimated value of $80,000 or more expected in 2014-15 is published in Austrade’s annual procurement plan, which is available from the AusTender website.
Consultants
Austrade engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or problem; carry out defined reviews or evaluations; or provide independent advice, information or creative solutions to assist in the agency’s decision-making.
Before engaging consultants, Austrade takes into account the skills and resources required for the task, the skills available internally, and the cost-effectiveness of engaging external expertise. The decision to engage a consultant is made in accordance with the Commonwealth Procurement Rules and relevant internal policies.
Austrade is required to report on AusTender consultancy contracts awarded where the contract value is $10,000 or more.
During 2013-14, 45 new consultancy contracts were entered into involving total actual expenditure of $3,279,724. In addition, 10 ongoing consultancy contracts were active during 2013-14, involving total actual expenditure of $526,337. Table 22 provides four-year trend information on Austrade’s consultancy contracts. The increase in expenditure on consultants this year is a direct result of Austrade gaining responsibility for tourism policy, programmes and research under machinery-of-government changes in October 2013.
Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.
Australian Trade Commission Annual Report 2013-14 156
Table 22: Four-year trend in consultancies, 2010-11 to 2013-14
2010-11 2011-12 2012-13 2013-14
Number of existing consultancies 11 7 11 10
Number of new consultancies 74 94 18 45
Total consultancies 85 101 29 55
Total expenditure $4,363,070 $2,075,520 $842,829 $3,279,724
MANAGING KNOWLEDGE AND INFORMATION Austrade’s knowledge and information systems underpin its role of advancing Australia’s trade, investment, international education and tourism interests through information, advice and services to businesses, the education sector and governments.
Austrade’s information technology connects staff across a wide network distributed across 82 overseas locations in 48 markets, as well as 11 offices in Australia. It enables Austrade to connect Australian and foreign businesses and institutions together to pursue trade, investment, tourism, and international education and training interests.
Business systems
Austrade’s Relationship Management System is the core business system for managing and sharing information about Austrade’s relationships and interactions with other organisations.
In 2013-14, a major redevelopment of the system was completed to modernise the platform and ensure it can continue to support Austrade’s evolving business practices. As well as a restructure of information holdings, the
redevelopment included amendments to the user interface to ensure its ongoing usability for delivering Austrade services.
Foundational components to enable richer online services were added to the system, including the ability to register business details and facilitate the automated generation of leads. Additional online services for email direct marketing, referrals and opportunities will be added in 2014-15.
Austrade also completed a major project to integrate a number of information systems into a single intranet. The system, called ‘The Hub’, provides a single source of information and an entry point to Austrade’s core knowledge and information assets, offering storage, access, search and retrieval services to all staff.
The Hub addresses structural and content aspects of how corporate information is provided to staff, particularly governance information such as policies and procedures for risk management and fraud control. Users are able to selectively subscribe to areas of interest and receive timely alerts as new information is added to The Hub.
In 2014-15, The Hub will continue to evolve, with ongoing enhancements planned to improve usability, performance and data quality.
Part 03 / Management and accountability. Managing knowledge and information 157
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Data centres
During 2013-14, Austrade continued to work on its data centre relocation project, which involves rehousing Austrade’s computing environment across two government-approved commercially hosted data centres in Canberra. The new data centres will change the way ICT operations are run by providing greater automation using updated technologies. From early 2014-15, Austrade’s ICT environment will have improved reliability and availability, occupy less floor space, make more efficient use of ICT equipment, and consume less power.
Enterprise mobility
A core component of Austrade’s ICT strategy is providing support for the agency’s highly mobile workforce. In 2013-14, Austrade introduced an enterprise mobility programme of work called ‘Austrade on the Go’. The key elements of the programme, to be delivered in 2014-15, are:
⺠the SWAPP project, which involves replacing the existing fleet of laptops with lighter, faster and better-performing devices
⺠the mobility project, which involves replacing the existing BlackBerry devices with modern devices, and providing appropriate device management and connectivity to enable staff to be more mobile and productive
⺠the wireless project, which involves providing wireless networks in Austrade offices to enable staff to be more flexible in the office work environment.
This upgraded capability will provide greater productivity and enhanced security features and enable access from a broader range of devices such as smartphones and tablets.
Nils van Boxsel Chief Information Officer, Canberra Nils leads Austrade’s
Information Technology Services Division, with responsibility for Austrade’s global ICT communications network, business information
systems, mobile solutions, and voice and videoconferencing services. This includes providing 24-hour ICT support to staff in all Austrade locations, as well as setting the strategies and future directions for Austrade’s ICT investments.
Nils’s team is currently migrating Austrade’s data centres to externally managed, government-approved offsite facilities, as well as re-engineering and redesigning service delivery using a ‘private cloud’ approach. ‘The Austrade IT environment is now 100 per cent “virtualised” and ICT workloads are not tied directly to the hardware resources and infrastructure they run on. This equates to greater efficiency, flexibility and improved utilisation of resources for Austrade’, Nils said.
Nils has worked in the ICT industry for more than 20 years. Prior to joining Austrade, Nils worked at Microsoft as the enterprise lead in the Platform Strategy Group.
Australian Trade Commission Annual Report 2013-14 158
Information security
Austrade continued to strengthen its information security in 2013-14 in response to the increased volume and sophistication of cyber-attacks, such as attempts to gain unauthorised access to Austrade’s information and systems. This included enhancements to the Austrade Protected Network for managing protected-level information and the implementation of a parliamentary records and information management system on the network. This capability was deployed to onshore staff and will be evaluated for offshore staff in 2014-15.
In addition, Austrade will have enhanced cybersecurity in its new data centres, which are undergoing a full security assessment and accreditation.
Global ICT equipment refresh
Austrade completed a project for the replacement of its global ICT equipment at all office locations during 2013-14. The refreshed hardware and software better supports and enhances productivity and improves security and resilience, complementing other security initiatives that Austrade has been undertaking.
System monitoring and performance engineering
During 2013-14, enhanced monitoring technology was implemented across the Austrade network, which enables better IT support for Austrade users and proactive identification of potential issues. Following the implementation of system monitoring, the performance of various components in Austrade’s core business systems (The Hub and the Relationship Management System) was assessed and measures were taken to improve the performance of some components.
The outcomes were significant performance improvements and increased usability for staff in remote locations across Austrade’s global network.
Web accessibility
The Australian Government Information Management Office has published and mandated compliance with Web Content Accessibility Guidelines at various levels over a number of years. Austrade has continued its commitment to ensure that its ICT systems meet the requirements for web accessibility so that its content is accessible by people with a diverse range of hearing, movement, sight and cognitive abilities. This has included work to remediate issues in its public-facing website, www.austrade.gov.au, and its core business systems like The Hub and the Relationship Management System.
Other IT-enabled business projects
A range of other business projects related to the specific ICT needs of business functions within Austrade were undertaken in 2013-14. These included redevelopment of the Study in Australia website, www.studyinaustralia.gov.au, the market planning tool in the Strategy and Governance Division, Export Marketing Development Grants e-lodgement, MyAccount and the Austrade file management system in the Marketing Online and Business Practice Division, and the integration of the Tourism Division into Austrade after machinery-of-government changes.
FINANCIAL STATEMENTS Financial performance 1 60
Financial statements 1 62
Independent auditor’s report 1 64
Certification of financial statements 1 66
Notes to and forming part of the financial statements 1 80
PART
04
Australian Trade Commission Annual Report 2013-14 160
Chief Finance Officer’s report In 2013-14, Austrade continued to maintain an effective financial management framework and achieved improvements in practices and processes. These included steps to strengthen the review of offshore and onshore locations, and further enhancements to internal compliance processes and reporting.
In a challenging financial environment, Austrade achieved its financial targets while integrating the tourism policy, programmes and research function, which was transferred from the former Department of Resources, Energy and Tourism under an Administrative Arrangements Order made on 3 October 2013.
In 2013-14, the Government provided Austrade with $176.8 million in funding for ordinary annual services. Revenue from government increased by $16.8 million compared to 2012-13. This was primarily due to the integration of the tourism function, along with other adjustments including the efficiency dividend, foreign exchange losses, and increased appropriation for fringe benefits tax on living away from home allowance under the Government’s ‘no win, no loss’provisions.
In addition, Austrade received $23.9 million in revenue from external sources, up $6.5 million from 2012-13, primarily because of increased cost recovery from other Government agencies, and the integration of the tourism function, which had existing revenue. Expenditure was also higher this year in line with the integration of the tourism function. Austrade also received $11 million for the departmental capital budget.
Administered expenditure was slightly lower in 2013-14 due to lower Export Market Development Grants scheme payments, partly offset by the Asian Business Engagement Plan grant payments, which were new in 2013-14.
Table 23 shows Austrade’s financial performance during the last four years. The change in dollar value from 2012-13 to 2013-14 is measured as a percentage. Therefore, an increase in dollar value (revenue, expense, asset or liability) is shown as a positive percentage, and a decrease is shown as a negative percentage. The exception is the operating result, where a movement to a smaller loss shows as a positive percentage. All positive percentage changes are shown as an upward arrow, and all negative percentage changes are shown as a downward arrow.
Outlook for 2014-15
The tight fiscal environment experienced in recent times is set to continue for a number of years. To mitigate this, Austrade’s executive has explored options to address a progressive reduction in appropriation for the foreseeable future. Austrade expects to continue to achieve its outcomes within a reduced financial envelope, while undertaking several new activities to extend the reach and scope of the services it offers.
Robert O’Meara Chief Finance Officer
FINANCIAL PERFORMANCE
Part 04 / Financial statements 161
4
Table 23: Austrade’s financial performance, 2010-11 to 2013-14
Departmental financial performance
2010-11 ($m)
2011-12 ($m)
2012-13 ($m)
2013-14 ($m) Change from 2012-13 (%)
Revenue from government
173.3 167.2 160.0 176.8 10.5 â
Revenue from other sources 25.0 19.9 17.4 23.9 37.4 â
Gains 1.8 0.2 0.2 0.3 50.0 â
Total income 200.1 187.3 177.5 201.0 13.2 â
Employee expenses 117.0 108.9 110.5 124.6 12.8 â
Supplier expenses 83.6 75.1 63.6 71.3 12.1 â
Depreciation 18.0 17.6 17.5 18.1 3.4 â
Other expenses 0.3 0.3 0.6 0.8 33.3 â
Total expenses 218.9 201.9 192.2 214.8 11.8 â
Operating result (loss) (18.8) (14.6) (14.7) (13.8) 6.1 â
Financial assets A 53.4 57.4 59.8 46.7 -21.9
â
Non-financial assets B 50.6 46.9 57.8 63.9 10.6 â
Liabilities C 49.8 49.2 54.1 53.1 -1.8
â
Net assets = A+B-C 54.2 55.1 63.5 57.5 -9.4
â
Administered financial performance
2010-11 ($m)
2011-12 ($m)
2012-13 ($m)
2013-14 ($m) Change from 2012-13 (%)
EMDG - grants expense
137.8 127.2 118.4 116.1 -1.9
â
ABEP - grants expense(a)
- - - 1.8 -
Total administered expenses(b) 145.4 135.1 125.9 124.6 -1.0
â
EMDG = Export Market Development Grants ABEP = Asian Business Engagement Plan (a) F unding for ABEP grants commenced in 2013-14. (b) I ncludes EMDG scheme administrative costs.
Note: Some figures have been rounded.
Australian Trade Commission Annual Report 2013-14 162
Australian Trade Commission
Financial Statements for the period ended 30 June 2014
Part 04 / Financial statements 163
4
TABLE OF CONTENTS
Independent Auditor’s Report 1 64
Statement by Officers 1 66
Statement of Comprehensive Income 1 67
Statement of Financial Position 1 68
Statement of Changes in Equity 1 69
Cash Flow Statement 1 70
Schedule of Commitments 1 71
Schedule of Contingencies 1 73
Administered Schedule of Comprehensive Income 1 74
Administered Schedule of Assets and Liabilities 1 75
Administered Reconciliation Schedule 1 76
Administered Cash Flow Statement 1 77
Schedule of Administered Commitments 1 78
Schedule of Administered Contingencies 1 79
Table of Contents - Notes 1 80
Note 1: Summary of Significant Accounting Policies 1 81
Note 2: Events After the Reporting Period 1 90
Note 3: Expenses 1 91
Note 4: Own-Source Income 1 92
Note 5: Fair Value Measurements 1 93
Note 6: Financial Assets 1 96
Note 7: Non-Financial Assets 1 98
Note 8: Payables 2 02
Note 9: Provisions 2 03
Note 10: Restructuring 2 04
Note 11: Cash Flow Reconciliation 2 05
Note 12: Contingent Assets and Liabilities 2 06
Note 13: Senior Executive Remuneration 2 07
Note 14: Remuneration of Auditors 2 12
Note 15: Financial Instruments 2 12
Note 16: Financial Assets Reconciliation 2 16
Note 17: Administered Expenses 2 17
Note 18: Administered Income 2 17
Note 19: Administered Financial Assets 2 18
Note 20: Administered Payables 2 20
Note 21: Administered Provisions 2 21
Note 22: Administered Cash Flow Reconciliation 2 22
Note 23: Administered Contingent Assets and Liabilities 2 23
Note 24: Administered Financial Instruments 2 23
Note 25: Administered Financial Assets Reconciliation 2 24
Note 26: Appropriations 2 25
Note 27: Special Accounts 2 31
Note 28: Compensation and Debt Relief 2 32
Note 29: Assets Held in Trust 2 32
Note 30: Reporting of Outcomes 2 33
Note 31: Net Cash Appropriation Arrangements 2 36
Australian Trade Commission Annual Report 2013-14 164
Part 04 / Financial statements 165
4
Australian Trade Commission Annual Report 2013-14 166
Part 04 / Financial statements 167
4
Australian Trade Commission Statement of Comprehensive Income for the period ended 30 June 2014
2
2014 2013
Notes $'000 $'000
NET COST OF SERVICES
Expenses
Employee benefits 3A 124,641 110,509
Suppliers 3B 71,345 63,599
Depreciation and amortisation 3C 18,068 17,476
Write-down and impairment of assets 3D 12 35
Losses from asset sales 3E 43 205
Foreign exchange losses 3F 666 366
Total expenses 214,775 192,190
Own-Source Income
Own-source revenue
Sale of goods and rendering of services 4A 20,975 14,883
Rental income 4B 85 297
Other revenue 4C 2,851 2,236
Total own-source revenue 23,911 17,416
Gains
Other gains 4D 326 160
Total gains 326 160
Total own-source income 24,237 17,576
Net cost of services 190,538 174,614
Revenue from Government 4E 176,760 159,962
Deficit attributable to the Australian Government (13,778) (14,652)
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Change in asset revaluation surplus 3,697 4,504
Total other comprehensive income/(loss) 3,697 4,504
Total comprehensive income/(loss) attributable to the Australian Government (10,081) (10,148)
The above statement should be read in conjunction with the accompanying notes.
Australian Trade Commission Annual Report 2013-14 168
Australian Trade Commission Statement of Financial Position as at 30 June 2014
3
2014 2013
Notes $'000 $'000
ASSETS
Financial assets
Cash and cash equivalents 6A 3,594 3,474
Trade and other receivables 6B 43,108 56,333
Total financial assets 46,702 59,807
Non-financial assets
Land and buildings 7A,C 14,346 11,180
Property, plant and equipment 7B,C 19,064 21,898
Intangibles 7D,E 22,586 17,540
Other non-financial assets 7F 7,913 7,176
Total non-financial assets 63,909 57,794
Total assets 110,611 117,601
LIABILITIES
Payables
Suppliers 8A 12,218 14,827
Other payables 8B 5,176 4,363
Total payables 17,394 19,190
Provisions
Employee provisions 9A 33,358 31,156
Other provisions 9B 2,342 3,786
Total provisions 35,700 34,942
Total liabilities 53,094 54,132
Net assets 57,517 63,469
EQUITY
Contributed equity 66,701 62,572
Reserves 66,015 62,318
Retained surplus/(Accumulated deficit) (75,199) (61,421)
Total equity 57,517 63,469
The above statement should be read in conjunction with the accompanying notes.
Part 04 / Financial statements 169
4
Australian Trade Commission Statement of Changes in Equity for the period ended 30 June 2014
4
Retained earnings
Asset
revaluation surplus
General reserve
Contributed equity/capital
Total equity
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Opening balance
Balance carried forward
from previous period
(61,421)
(46,769)
23,593
19,089
38,725
38,725
62,572
44,080
63,469
55,125
Adjusted opening balance
(61,421)
(46,769)
23,593
19,089
38,725
38,725
62,572
44,080
63,469
55,125
Comprehensive income
Surplus/(Deficit) for the period
(13,778)
(14,652)
(13,778)
(14,652)
Other comprehensive income
-
-
3,697
4,504
-
-
-
-
3,697
4,504
Total comprehensive income
(13,778)
(14,652)
3,697
4,504
-
-
-
-
(10,081)
(10,148)
Transactions with owners
Distributions to owners
Returns of capital
-
-
-
-
-
-
(4,818)
-
(4,818)
-
Restructuring
-
-
-
-
-
-
(2,073)
-
(2,073)
-
Contributions by owners
Departmental capital budget
-
-
-
-
-
-
11,020
18,492
11,020
18,492
Total transactions with owners
-
-
-
-
-
-
4,129
18,492
4,129
18,492
Closing balance as at 30 June
(75,199)
(61,421)
27,290
23,593
38,725
38,725
66,701
62,572
57,517
63,469
The above statement should be read in conjunction with the accompanying notes.
Australian Trade Commission Annual Report 2013-14 170
Australian Trade Commission Cash Flow Statement for the period ended 30 June 2014
5
2014 2013
Notes $'000 $'000
OPERATING ACTIVITIES
Cash received
Appropriations 176,775 164,014
Sales of goods and rendering services 21,961 15,085
Net GST received 4,393 4,358
Other 2,649 2,533
Total cash received 205,778 185,990
Cash used
Employees 124,723 109,972
Suppliers 77,321 74,200
Total cash used 202,044 184,172
Net cash from/(used by) operating activities 11 3,734 1,818
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment 210 261
Total cash received 210 261
Cash used
Purchase of property, plant and equipment 23,752 13,758
Total cash used 23,752 13,758
Net cash from/(used by) investing activities (23,542) (13,497)
FINANCING ACTIVITIES
Cash received
Contributed equity 19,928 11,543
Total cash received 19,928 11,543
Net cash from/(used by) financing activities 19,928 11,543
Net increase/(decrease) in cash held 120 (136)
Cash and cash equivalents at the beginning of the reporting period 3,474 3,610
Cash and cash equivalents at the end of the reporting period 6A 3,594 3,474
The above statement should be read in conjunction with the accompanying notes.
Part 04 / Financial statements 171
4
Australian Trade Commission Schedule of Commitments as at 30 June 2014
6
2014 2013
BY TYPE $'000 $'000
Commitments receivable
Sublease rental income (2,121) (691)
Net GST recoverable on commitments (4,253) (2,143)
Total commitments receivable (6,374) (2,834)
Commitments payable
Capital commitments
Property, plant and equipment1 1,802 2,419
Total capital commitments 1,802 2,419
Other commitments
Operating leases2 54,296 42,168
Other3 21,362 10,126
Total other commitments 75,658 52,294
Total commitments payable 77,460 54,713
Net commitments by type 71,086 51,879
BY MATURITY
Commitments receivable
Operating lease income
Within 1 year (875) (472)
From 1 to 5 years (1,246) (219)
Total operating lease income (2,121) (691)
Other commitments receivable
Within 1 year (1,553) (1,071)
From 1 to 5 years (2,332) (1,060)
Over 5 years (368) (12)
Total other commitments receivable (4,253) (2,143)
Total commitments receivable (6,374) (2,834)
Commitments payable
Capital commitments
Within 1 year 763 555
From 1 to 5 years 1,039 1,864
Total capital commitments 1,802 2,419
Operating lease commitments
Within 1 year 14,510 12,202
From 1 to 5 years 35,207 28,686
Over 5 years 4,579 1,280
Total operating lease commitments 54,296 42,168
Other commitments
Within 1 year 12,381 8,635
From 1 to 5 years 8,965 1,470
Over 5 years 16 21
Total other commitments 21,362 10,126
Total commitments payable 77,460 54,713
Net commitments by maturity 71,086 51,879
Note: Commitments are GST inclusive where relevant.
1 Property, plant and equipment commitments are primarily contracts for purchases of leasehold improvements and motor vehicles. 2 Operating leases, which relate primarily to office/residential accommodation, are effectively non-cancellable; they comprise:
Australian Trade Commission Annual Report 2013-14 172
Australian Trade Commission Schedule of Commitments as at 30 June 2014
7
Office and residential accommodation General description of leasing arrangement The Commission has leases with the Commonwealth, Department of Foreign
Affairs and Trade and commercial landlords in Australia and overseas on terms and conditions negotiated in each market. The terms and conditions of the leases vary widely depending on the circ*mstances in the relevant country and the specific terms of each lease.
3 Other commitments mainly comprise contracts for Tradestart and contracts for IT services.
The above schedule should be read in conjunction with the accompanying notes.
Part 04 / Financial statements 173
4
Australian Trade Commission Schedule of Contingencies as at 30 June 2014
8
2014 2013
$'000 $'000
Contingent liabilities
Claims for damages or costs 64 127
Total contingent liabilities 64 127
Net contingent liabilities 64 127
Details of each class of contingent liabilities listed above are disclosed in Note 12, along with information on significant remote contingencies and contingencies that cannot be quantified.
The above schedule should be read in conjunction with the accompanying notes.
Australian Trade Commission Annual Report 2013-14 174
Australian Trade Commission Administered Schedule of Comprehensive Income for the period ended 30 June 2014
9
2014 2013
Notes $'000 $'000
NET COST OF SERVICES
Expenses
Employee benefits 17A 5,419 6,077
Suppliers 17B 1,251 1,428
Grants 17C 117,937 118,380
Total expenses 124,607 125,885
Income
Revenue
Non-taxation revenue
Other revenue 18A 372 6
Total non-taxation revenue 372 6
Total revenue 372 6
Total income 372 6
Net (cost of)/contribution by services (124,235) (125,879)
Deficit attributable to the Australian Government (124,235) (125,879)
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Other comprehensive income - -
Total other comprehensive income - -
Total comprehensive income/(loss) (124,235) (125,879)
The above schedule should be read in conjunction with the accompanying notes.
Part 04 / Financial statements 175
4
Australian Trade Commission Administered Schedule of Assets and Liabilities as at 30 June 2014
10
2014 2013
Notes $'000 $'000
ASSETS
Financial assets
Cash and cash equivalents 19A - 46
Trade and other receivables 19B 19 44
Total financial assets 19 90
Total assets administered on behalf of Government 19 90
LIABILITIES
Payables
Suppliers 20A 44 79
Grants 20B 473 -
Other payables 20C 179 160
Total payables 696 239
Provisions
Employee provisions 21A 1,709 2,331
Grants provisions 21B 8,996 6,438
Total provisions 10,705 8,769
Total liabilities administered on behalf of Government 11,401 9,008
Net assets/(liabilities) (11,382) (8,918)
The above schedule should be read in conjunction with the accompanying notes.
Australian Trade Commission Annual Report 2013-14 176
Australian Trade Commission Administered Reconciliation Schedule
11
2014 2013
$'000 $'000
Opening assets less liabilities as at 1 July (8,918) (10,928)
Net (cost of)/contribution by services
Income 372 6
Expenses
Payments to Non-CAC Act bodies (124,607) (125,885)
Transfers (to)/from the Australian Government
Appropriation transfers from Official Public Account
Annual appropriations
Payments to Non-CAC Act bodies 122,147 127,986
Appropriation transfers to OPA
Transfers to OPA (376) (97)
Closing assets less liabilities as at 30 June (11,382) (8,918)
The above schedule should be read in conjunction with the accompanying notes.
Part 04 / Financial statements 177
4
Australian Trade Commission Administered Cash Flow Statement for the period ended 30 June 2014
12
2014 2013
Notes $'000 $'000
OPERATING ACTIVITIES
Cash received
Net GST received 159 57
Other 393 5
Total cash received 552 62
Cash used
Employees 6,022 6,123
Suppliers 1,441 1,471
Grants 114,906 120,312
Total cash used 122,369 127,906
Net cash from/(used by) operating activities 22 (121,817) (127,844)
Net increase/(decrease) in cash held (121,817) (127,844)
Cash and cash equivalents at the beginning of the reporting period 46 1
Cash from Official Public Account
Appropriations 122,147 127,986
Total cash from official public account 122,147 127,986
Cash to Official Public Account
Other (376) (97)
Total cash to official public account (376) (97)
Cash and cash equivalents at the end of the reporting period 19A - 46
The above statement should be read in conjunction with the accompanying notes.
Australian Trade Commission Annual Report 2013-14 178
Australian Trade Commission Schedule of Administered Commitments as at 30 June 2014
13
2014 2013
BY TYPE $'000 $'000
Commitments receivable
Net GST recoverable on commitments (370) (201)
Total commitments receivable (370) (201)
Commitments payable
Other commitments
Operating leases 1,861 1,238
Other1 2,207 977
Total other commitments 4,068 2,215
Total commitments payable 4,068 2,215
Net commitments by type 3,698 2,014
BY MATURITY
Commitments receivable
Other commitments receivable
Within 1 year (106) (108)
From 1 to 5 years (227) (93)
Over 5 years (37) -
Total other commitments receivable (370) (201)
Total commitments receivable (370) (201)
Commitments payable
Operating lease commitments
Within 1 year 415 608
From 1 to 5 years 1,044 630
Over 5 years 402 -
Total operating lease commitments 1,861 1,238
Other commitments
Within 1 year 750 584
From 1 to 5 years 1,457 393
Total other commitments 2,207 977
Total commitments payable 4,068 2,215
Net commitments by maturity 3,698 2,014
Note: Commitments are GST inclusive where relevant.
1 The nature of other commitments is motor vehicle leasing and contracts for IT services.
The above schedule should be read in conjunction with the accompanying notes.
Part 04 / Financial statements 179
4
Australian Trade Commission Schedule of Administered Contingencies as at 30 June 2014
14
2014 2013
$'000 $'000
Contingent liabilities
Claims for damages or costs 883 2,558
Total contingent liabilities 883 2,558
Net contingent assets/(liabilities) 883 2,558
Details of each class of contingent liabilities in the above table are disclosed in Note 23, along with information on significant remote contingencies and contingencies that cannot be quantified.
This schedule should be read in conjunction with the accompanying notes.
Australian Trade Commission Annual Report 2013-14 180
TABLE OF CONTENTS - NOTES
Note 1: Summary of Significant Accounting Policies 1 81
Note 2: Events After the Reporting Period 1 90
Note 3: Expenses 1 91
Note 4: Own-Source Income 1 92
Note 5: Fair Value Measurements 1 93
Note 6: Financial Assets 1 96
Note 7: Non-Financial Assets 1 98
Note 8: Payables 2 02
Note 9: Provisions 2 03
Note 10: Restructuring 2 04
Note 11: Cash Flow Reconciliation 2 05
Note 12: Contingent Assets and Liabilities 2 06
Note 13: Senior Executive Remuneration 2 07
Note 14: Remuneration of Auditors 2 12
Note 15: Financial Instruments 2 12
Note 16: Financial Assets Reconciliation 2 16
Note 17: Administered Expenses 2 17
Note 18: Administered Income 2 17
Note 19: Administered Financial Assets 2 18
Note 20: Administered Payables 2 20
Note 21: Administered Provisions 2 21
Note 22: Administered Cash Flow Reconciliation 2 22
Note 23: Administered Contingent Assets and Liabilities 2 23
Note 24: Administered Financial Instruments 2 23
Note 25: Administered Financial Assets Reconciliation 2 24
Note 26: Appropriations 2 25
Note 27: Special Accounts 2 31
Note 28: Compensation and Debt Relief 2 32
Note 29: Assets Held in Trust 2 32
Note 30: Reporting of Outcomes 2 33
Note 31: Net Cash Appropriation Arrangements 2 36
Part 04 / Financial statements 181
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Australian Trade Commission Notes to and forming part of the financial statements
16
Note 1: Summary of Significant Accounting Policies
1.1 Objectives of the Australian Trade Commission
The Australian Trade Commission (the Commission) is an Australian Government controlled entity. It is a not-for-profit entity.
The Commission is the Australian Government’s international trade, education and investment promotion agency. It also has responsibility for tourism policy and research where the Government’s focus is on international tourism. The objective of the Commission is to contribute to Australia’s economic prosperity by helping Australian businesses, education institutions, associations, and governments as they develop international markets, win productive foreign investment, promote international education, and strengthen the Australian tourism industry.
The Commission is structured to meet the following outcomes:
Outcome 1: Contribute to Australia’s economic prosperity by promoting Australia’s export and other international economic interests through the provision of information, advice and services to business, associations, institutions and government.
Outcome 2: The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas.
The continued existence of the Commission in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Commission's administration and programs.
The Commission's activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Commission in its own right. Administered activities involve the management or oversight by the Commission, on behalf of the government, of items controlled or incurred by the government.
The Commission conducts the following administered activities on behalf of the Government:
ï· Export Market Development Grants Scheme ï· Asian Business Engagement Plan
Australian Trade Commission Annual Report 2013-14 182
Australian Trade Commission Notes to and forming part of the financial statements
17
1.2 Basis of Preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997 (FMA Act).
The financial statements have been prepared in accordance with:
ï· Finance Minister's Orders (FMOs) for reporting periods ending on or after 1 July 2011; and
ï· Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the Commission or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.
Unless an alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
1.3 Significant Accounting Judgements and Estimates
In the process of applying the accounting policies listed in this note, the Commission has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:
ï· The fair value of leasehold improvements has been taken to be the depreciated replacement cost as determined by an independent valuer by reference to the gross replacement cost;
ï· The fair value of plant and equipment has been determined by reference to the market value of similar assets;
ï· The liability for long service leave has been estimated using present value techniques, which take account of attrition rates and pay increases through promotion and inflation;
ï· The liability for grants lodged and payable under the EMDG Scheme but not yet determined has been estimated by reference to payment histories in previous years;
ï· The liability for grant appeals lodged under the EMDG Scheme but not yet finalised has been estimated by reference to successful appeals histories in previous years; and
ï· The provision for impairment of departmental financial assets has been determined by reference to collection histories in previous years and the current debt profile.
No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
Part 04 / Financial statements 183
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Australian Trade Commission Notes to and forming part of the financial statements
18
1.4 New Australian Accounting Standards
Adoption of New Australian Accounting Standard Requirements
No accounting standard has been adopted earlier than the application date as stated in the standard.
The following new, revised, or amending Standards or Interpretations were issued prior to the signing of the statement by the Chief Executive and Chief Finance Officer, were applicable to the current reporting period and had a material effect on the Commission’s financial statements:
Standard/ Interpretation Nature of change in accounting policy, transitional provisions1, and adjustment to financial statements AASB 13 Fair Value Measurement
Requires entities to classify fair value measurements into three levels based upon the lowest level of inputs used. AASB 13 also requires a number of new disclosure requirements for assets and liabilities carried at fair value (refer to Note 5: Fair Value Measurements).
1. When transitional provisions apply, all changes in accounting policy are made in accordance with their respective transitional provisions.
All other new, revised, or amending Standards or Interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect, and are not expected to have a future material effect, on the Commission’s financial statements.
Future Australian Accounting Standard Requirements
The following new, revised or amending Standards or Interpretations were issued by the Australian Accounting Standards Board prior to the signing of the statement by the Chief Executive and Chief Finance Officer, which are expected to have a material impact on the Commission’s financial statements for future reporting periods:
Standard/ Interpretation Application date for the Commission1
Nature of impending change/s in accounting policy and likely impact on initial application
AASB 1055 Budgetary Reporting 1 July 2014 Requires reporting of budgetary information by not-for-profit entities within the General Government
Sector. In particular: - original budget presented to Parliament; - variance of actuals from budget; and - explanations of significant variances. Likely impact: Provide users with information relevant to assessing the performance of the Commission, including accountability for resources entrusted to it.
1. The Commission’s expected initial application date is when the accounting standard becomes operative at the beginning of the Commission’s reporting period.
All other new, revised or amending Standards or Interpretations that were issued prior to the sign-off date and are applicable to future reporting periods are not expected to have a future material impact on the Commission’s financial statements.
Australian Trade Commission Annual Report 2013-14 184
Australian Trade Commission Notes to and forming part of the financial statements
19
1.5 Revenue
Revenue from the sale of goods is recognised when:
a) the risks and rewards of ownership have been transferred to the buyer;
b) the Commission retains no managerial involvement or effective control over the goods;
c) the revenue and transaction costs incurred can be reliably measured; and
d) it is probable that the economic benefits associated with the transaction will flow to the Commission.
Revenue from the rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
b) the probable economic benefits associated with the transaction will flow to the Commission.
The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the total estimated costs of the transaction.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.
Revenue from Government
Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the Commission gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.
1.6 Gains
Resources Received Free of Charge
Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).
Sale of Assets
Gains from disposal of assets are recognised when control of the asset has passed to the buyer.
Part 04 / Financial statements 185
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Australian Trade Commission Notes to and forming part of the financial statements
20
1.7 Transactions with the Government as Owner
Equity Injections
Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.
Restructuring of Administrative Arrangements
Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.
1.8 Employee Benefits
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Other long term employee benefit liabilities are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
Leave
The liability for employee benefits includes provisions for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Commission's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave is estimated using present value techniques, which take account of attrition rates and pay increases through promotion and inflation.
For employees engaged overseas, liabilities for separation entitlements are calculated in accordance with local employment conditions.
Separation and Redundancy
Provision is made for separation and redundancy benefit payments. The Commission recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.
Superannuation
Australian based staff of the Commission are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the Public Sector Superannuation accumulation plan (PSSap), and a small number of other complying funds nominated by employees.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.
The Commission makes employer contributions to the employees' superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. The Commission accounts for the contributions as if they were contributions to defined contribution plans.
For employees engaged overseas, the Commission pays employer contributions to meet its superannuation obligations, which vary according to local employment conditions.
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final pay period of the year and other amounts payable in relation to 2013-14.
Australian Trade Commission Annual Report 2013-14 186
Australian Trade Commission Notes to and forming part of the financial statements
21
1.9 Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.
Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.
The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.
The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus.
Security deposits in relation to overseas property leases are payable to the Commission on the termination of individual leases. These deposits are classified as current or non-current receivables as appropriate.
Lease incentives taking the form of payments from landlords, subsidised fitout, or rental holidays, are recognised as liabilities. These liabilities are reduced by allocating future lease payments between rental expense and reduction of the liability.
1.10 Fair Value Measurement
The Commission deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period, by re-assessing categorisation based on the lowest level input that is significant to the fair value measurement as a whole.
1.11 Cash
Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, cash at banks and deposits held at call with banks and includes cash in special accounts.
1.12 Financial Assets and Liabilities
Recognised Financial Assets and Liabilities
Financial assets and liabilities are measured at fair value. In practice this means that receivables are measured at their nominal amounts, less any allowance for impairment losses. Provisions are made when collection of the debt is judged to be less rather than more likely.
Trade creditors and accruals are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced) and measured at their nominal amounts, being the amounts at which they will be settled.
1.13 Contingent Liabilities and Contingent Assets
Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.
Part 04 / Financial statements 187
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Australian Trade Commission Notes to and forming part of the financial statements
22
1.14 Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.
1.15 Property, Plant and Equipment
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $5,000 ($3,500 for computer equipment), which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located where there is a reasonable prospect that this will be required.
Revaluations
Fair values for each class of asset are determined as shown below:
Asset class Fair value measurement
Land and Buildings
-Leasehold improvements Depreciated replacement cost
Property, plant and equipment
-Plant and equipment Market selling price
Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
Depreciation
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future, reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
2014 2013
Leasehold improvements Lease term or assessed life Lease term or assessed life
Property, plant and equipment 3 to 10 years 3 to 10 years
Australian Trade Commission Annual Report 2013-14 188
Australian Trade Commission Notes to and forming part of the financial statements
23
Impairment
All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Commission were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
Restoration Provisions
Provisions for restoration represent restoration obligations in respect of information and communications technology equipment. The provisions are the best estimate of the present value of the expenditure required to settle the restoration obligations at reporting date, based on current security and legal requirements and technology. The amount of the provision for future restoration costs is capitalised as a Property, Plant and Equipment asset and amortised over the asset’s life.
1.16 Intangibles
The Commission's intangibles comprise internally developed and purchased software for internal use and other intellectual property. Other intellectual property comprises databases, still and moving images and website resources. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
Intangible asset development projects in progress, where future economic benefits are assessed as probable, are recognised progressively as assets and measured at cost. Amortisation begins when the asset is first put into use or held ready for use.
Intangible assets are amortised on a straight-line basis over their anticipated useful life. The useful lives of the Commission's intangibles are 3 to 10 years (2012-13: 3 to 8 years).
All intangible assets were assessed for indications of impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
1.17 Taxation/Competitive Neutrality
The Commission is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
The Commission also pays various in-country taxes applicable to its overseas operations.
Revenues, expenses and assets are recognised net of GST or equivalent except where the amount of GST or equivalent incurred is not recoverable from the Australian Taxation Office and except for receivables and payables.
Competitive Neutrality
The Commission has not been required to make any competitive neutrality payments.
1.18 Foreign Currency
Transactions denominated in a foreign currency are translated to Australian currency using the exchange rate at the date of the transaction. At reporting date, foreign currency receivables and payables or assets and liabilities are translated at the exchange rates current as at that date. All exchange gains and losses are recognised as revenues or expenses, as appropriate.
The Commission's operating budget funding for overseas activities is adjusted for any differences in realised foreign exchange transactions during the year against rates set at Budget by the Department of Finance. Adjustments are generally made to the Appropriation Bills in the current or following year. Any amounts so receivable or payable at the end of the reporting period are recognised as assets or liabilities as appropriate.
Part 04 / Financial statements 189
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Australian Trade Commission Notes to and forming part of the financial statements
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1.19 Reporting of Administered Activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.
Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.
Administered Cash Transfers to and from the Official Public Account
Revenue collected by the Commission for use by the Government rather than the Commission is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Commission on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.
Grants
The Commission, on behalf of the Government, administers grants relating to the Export Market Development Grants Scheme (EMDG) and Asian Business Engagement Plan (ABE).
Export Market Development Grants are brought to account when deemed payable in accordance with the provisions of the Export Market Development Grants Act 1997. However, a provision is also recognised at the end of the financial year for the likely payments arising from grants claims and appeals lodged but not yet finalised based on prior years' payment history.
ABE grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied.
Australian Trade Commission Annual Report 2013-14 190
Australian Trade Commission Notes to and forming part of the financial statements
25
Note 2: Events After the Reporting Period
There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Commission.
Part 04 / Financial statements 191
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Australian Trade Commission Notes to and forming part of the financial statements
26
Note 3: Expenses 2014 2013
$'000 $'000
Note 3A: Employee Benefits
Wages and salaries 89,191 81,405
Superannuation
Defined contribution plans 3,709 2,888
Defined benefit plans 5,788 5,177
Leave and other entitlements 18,689 15,956
Separation and redundancies 3,735 2,864
Fringe benefits tax 3,529 2,219
Total employee benefits 124,641 110,509
Note 3B: Suppliers
Goods and services supplied or rendered
Contractors, consultants and service providers 11,278 8,437
Non-lease property related costs 5,852 4,905
Publicity and promotions 8,134 9,302
Communications and information technology 4,915 4,660
Travel and related expenses 8,181 7,393
Tradestart payments 3,183 3,229
Other operating costs 9,216 8,315
Total goods and services supplied or rendered 50,759 46,241
Services rendered in connection with
Related parties 496 416
External parties 50,263 45,825
Total services rendered 50,759 46,241
Total goods and services supplied or rendered 50,759 46,241
Other suppliers
Operating lease rentals in connection with
Related parties
Minimum lease payments 4,044 3,914
External parties
Minimum lease payments 16,104 13,082
Workers compensation expenses 438 362
Total other suppliers 20,586 17,358
Total suppliers 71,345 63,599
Note 3C: Depreciation and Amortisation
Depreciation
Property, plant and equipment 6,675 7,029
Buildings 3,489 3,705
Total depreciation 10,164 10,734
Amortisation
Intangibles 7,904 6,742
Total amortisation 7,904 6,742
Total depreciation and amortisation 18,068 17,476
Australian Trade Commission Annual Report 2013-14 192
Australian Trade Commission Notes to and forming part of the financial statements
27
2014 2013
$'000 $'000
Note 3D: Write-Down and Impairment of Assets
Impairment on trade and other receivables 12 35
Total write-down and impairment of assets 12 35
Note 3E: Losses from Asset Sales
Land and buildings
Proceeds from sale (1) -
Carrying value of assets sold 1 -
Property, plant and equipment
Proceeds from sale (209) (261)
Carrying value of assets sold 252 432
Intangibles
Carrying value of assets sold - 34
Total losses from asset sales 43 205
Note 3F: Foreign Exchange Losses
Non-speculative 666 366
Total foreign exchange losses 666 366
Note 4: Own-Source Income
Own-Source Revenue Note 4A: Sale of Goods and Rendering of Services
Rendering of services in connection with
Related parties 11,846 8,365
External parties 9,129 6,518
Total rendering of services 20,975 14,883
Note 4B: Rental Income
Operating lease
Property lease 85 297
Total rental income 85 297
Note 4C: Other Revenue
Other 2,851 2,236
Total other revenue 2,851 2,236
Gains Note 4D: Other Gains
Resources received free of charge
Financial statement audit services 160 160
Leasehold improvements 166 -
Total other gains 326 160
Note 4E: Revenue from Government
Appropriations
Departmental appropriations 176,760 159,962
Total revenue from Government 176,760 159,962
Part 04 / Financial statements 193
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Australian Trade Commission Notes to and forming part of the financial statements
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Note 5: Fair Value Measurements
The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability.
Note 5A: Fair Value Measurements
Fair value measurements at the end of the reporting period by hierarchy for assets and liabilities in 2014
Fair value measurements at the end of the reporting period using
Fair value
Level 1 inputs
Level 2 inputs
Level 3 inputs
$'000 $'000 $'000 $'000
Non-financial assets
Leasehold improvements 14,346 - - 14,346
Other property, plant and equipment 19,064 - 17,269 1,795
Total non-financial assets 33,410 - 17,269 16,141
Total fair value measurements of assets in the statement of financial position 33,410 - 17,269 16,141
Fair value measurements - highest and best use differs from current use for non-financial assets (NFAs) The highest and best use of all non-financial assets are the same as their current use.
Australian Trade Commission Annual Report 2013-14 194
Australian Trade Commission Notes to and forming part of the financial statements
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Note 5B: Valuation Technique and Inputs for Level 2 and Level 3 Fair Value Measurements
Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets and liabilities in 2014
Category (Level 2 or Level 3) Fair value
Valuation technique(s)1 Inputs used
Range (weighted average)2
$'000
Non-financial assets
Leasehold improvements Level 3 14,346 Depreciated
replacement cost
Cost per square metre
$412 - $28,053 ($1,892)
Other property, plant and equipment3
Level 2 17,269 Market
approach Sale prices of comparable assets
N/A
Other property, plant and equipment4
Level 3 1,795 Depreciated
replacement cost
Costs of
producing or acquiring similar assets with
equivalent service capacity
$0.000m - $0.153m ($0.002m)
1. No change in valuation technique occurred during the period. 2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category. 3. Comprises non-specialised IT assets, motor vehicles and furniture and fittings. 4. Comprises specialised IT assets.
Recurring and non-recurring Level 3 fair value measurements - valuation processes
For leasehold improvements, the Commission procured valuation services from Colliers International (Colliers) and relied on valuation models provided by Colliers. The Commission analyses changes in fair value measurements at least once every 12 months. Colliers provided written assurance to the Commission that the model developed is in compliance with AASB 13. For the majority of items of other property, plant and equipment measured at depreciated replacement cost, the Commission procured valuation services from Pickles Valuation Services (Pickles) in 2013 and relied on valuation models provided by Pickles. The remaining items of other property, plant and equipment are subject to management valuation using market based evidence. The Commission analyses changes in fair value measurements at least once every 12 months.
Recurring Level 3 fair value measurements - sensitivity of inputs The significant unobservable inputs used in the fair value measurement of the Commission’s leasehold improvements are costs per square metre of similar leasehold improvements in the relevant city or country. Significant increases (decreases) of any of those inputs in isolation would result in a significantly higher (lower) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Commission’s other property, plant and equipment are the costs of producing or acquiring similar assets with equivalent service capacity. Significant increases (decreases) of any of those inputs in isolation would result in a significantly higher (lower) fair value measurement.
Part 04 / Financial statements 195
4
Australian Trade Commission Notes to and forming part of the financial statements
30
Note 5C: Reconciliation for Recurring Level 3 Fair Value Measurements
Recurring Level 3 fair value measurements - reconciliation for assets
Non-financial assets
Leasehold improvements
Other
property, plant and equipment Total
2014 2014 2014
$'000 $'000 $'000
Opening balance 11,180 3,075 14,255
Total gains/(losses) recognised in net cost of services1 (3,489) (1,147) (4,636)
Total gains/(losses) recognised in other comprehensive income2 3,697 - 3,697
Purchases 2,959 - 2,959
Sales (1) (133) (134)
Closing balance 14,346 1,795 16,141
1. These gains/(losses) are presented in the Statement of Comprehensive Income under ‘Depreciation and amortisation’. 2. These gains/(losses) are presented in the Statement of Comprehensive Income under ‘Change in asset revaluation surplus’.
Australian Trade Commission Annual Report 2013-14 196
Australian Trade Commission Notes to and forming part of the financial statements
31
Note 6: Financial Assets 2014 2013
$'000 $'000
Note 6A: Cash and Cash Equivalents
Special accounts 100 100
Cash at bank 3,455 3,319
Cash on hand 39 55
Total cash and cash equivalents 3,594 3,474
Note 6B: Trade and Other Receivables
Good and services receivables in connection with
Related parties 608 1,025
External parties 2,319 2,811
Total goods and services receivables 2,927 3,836
Appropriations receivables
Existing programs 39,570 52,096
Total appropriations receivable 39,570 52,096
Other receivables
GST receivable from the Australian Taxation Office 641 563
Total other receivables 641 563
Total trade and other receivables (gross) 43,138 56,495
Less impairment allowance
Goods and services 30 162
Total impairment allowance 30 162
Total trade and other receivables (net) 43,108 56,333
Trade and other receivables (net) expected to be recovered
No more than 12 months 42,301 55,530
More than 12 months 807 803
Total trade and other receivables (net) 43,108 56,333
Trade and other receivables (gross) aged as follows
Not overdue 42,991 55,962
Overdue by
0 to 30 days 83 57
31 to 60 days 16 9
61 to 90 days 10 304
More than 90 days 38 163
Total trade and other receivables (gross) 43,138 56,495
Impairment allowance aged as follows
Overdue by:
More than 90 days 30 162
Total impairment allowance 30 162
Credit terms for goods and services were within 30 days (2013: 30 days).
Part 04 / Financial statements 197
4
Australian Trade Commission Notes to and forming part of the financial statements
32
Note 6B: Trade and Other Receivables (continued)
Reconciliation of the Impairment Allowance
Movements in relation to 2014
Goods and services Total
$'000 $'000
Opening balance 162 162
Amounts written off (145) (145)
Amounts recovered and reversed - -
Increase/(Decrease) recognised in net surplus 13 13
Closing balance 30 30
Movements in relation to 2013
Goods and services Total
$'000 $'000
Opening balance 227 227
Amounts written off (35) (35)
Amounts recovered and reversed (48) (48)
Increase/(Decrease) recognised in net surplus 18 18
Closing balance 162 162
Australian Trade Commission Annual Report 2013-14 198
Australian Trade Commission Notes to and forming part of the financial statements
33
Note 7: Non-Financial Assets 2014 2013
$'000 $'000
Note 7A: Land and Buildings
Leasehold improvements
Fair value 13,501 11,221
Leasehold improvements - work in progress - at cost 1,339 879
Accumulated impairment losses (494) (920)
Total leasehold improvements 14,346 11,180
Total land and buildings 14,346 11,180
Impairment losses of $0.494m (2013: $0.629m) were recognised in other comprehensive income.
No land or buildings are expected to be sold or disposed of within the next 12 months, other than in the normal course of business operations.
Note 7B: Property Plant and Equipment
Other property, plant and equipment
Fair value 20,696 14,049
Accumulated depreciation (6,307) -
14,389 14,049
Property, plant and equipment - work in progress - at cost 4,675 7,849
Total other property, plant and equipment 19,064 21,898
Total property, plant and equipment 19,064 21,898
No indicators of impairment were found for property, plant and equipment.
No property, plant or equipment is expected to be sold or disposed of within the next 12 months, other than in the normal course of business operations.
Revaluations of non-financial assets
All revaluations were conducted in accordance with revaluation policy stated at Note 1.
The 2014 revaluation of leasehold improvements was conducted by the independent qualified valuer Colliers International Pty Ltd. The revaluation increment for leasehold improvements was $4.191m (2013: $4.146m increment).
A management valuation of other property, plant and equipment was conducted at 30 June 2013. The revaluation increment for other property, plant and equipment was $0.987m in 2013. No revaluation was conducted at 30 June 2014.
All increments and decrements were transferred to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position. No decrements were expensed (2013: no decrements).
Part 04 / Financial statements 199
4
Australian Trade Commission Notes to and forming part of the financial statements
34
Note 7C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment
Reconciliation of the opening and closing balances of property, plant and equipment for 2014
Buildings - leasehold improvements
Other
property, plant & equipment Total
$’000 $’000 $’000
As at 1 July 2013
Gross book value 11,180 21,898 33,078
Accumulated depreciation and impairment - - -
Total as at 1 July 2013 11,180 21,898 33,078
Additions
Purchase 2,959 3,852 6,811
Acquisition of entities or operations (including restructuring) - 73 73
Revaluations and impairments recognised in other comprehensive income 3,697 - 3,697
Depreciation (3,489) (6,675) (10,164)
Disposals
Other (1) (252) (253)
Other movements - 168 168
Total as at 30 June 2014 14,346 19,064 33,410
Total as at 30 June 2014 represented by
Gross book value 14,346 25,371 39,717
Accumulated depreciation and impairment - (6,307) (6,307)
Total as at 30 June 2014 14,346 19,064 33,410
Reconciliation of the opening and closing balances of property, plant and equipment for 2013
Buildings - leasehold improvements
Other property, plant & equipment Total
$’000 $’000 $’000
As at 1 July 2012
Gross book value 10,209 32,570 42,779
Accumulated depreciation and impairment - (14,356) (14,356)
Total as at 1 July 2012 10,209 18,214 28,423
Additions
Purchase 1,159 10,360 11,519
Revaluations and impairments recognised in other comprehensive income 3,517 987 4,504
Depreciation (3,705) (7,029) (10,734)
Disposals
Other - (432) (432)
Other movements - (202) (202)
Total as at 30 June 2013 11,180 21,898 33,078
Total as at 30 June 2013 represented by
Gross book value 11,180 21,898 33,078
Accumulated depreciation and impairment - - -
Total as at 30 June 2013 11,180 21,898 33,078
Australian Trade Commission Annual Report 2013-14 200
Australian Trade Commission Notes to and forming part of the financial statements
35
2014 2013
$'000 $'000
Note 7D: Intangibles
Computer software
Internally developed - in progress 4,579 8,010
Internally developed - in use 29,997 24,157
Purchased 20,134 15,296
Accumulated amortisation (35,350) (29,923)
Total computer software 19,360 17,540
Other intangibles1
Internally developed - in progress - -
Internally developed - in use 3,227 -
Purchased - -
Accumulated amortisation (1) -
Total other intangibles 3,226 -
Total intangibles 22,586 17,540
1. Other intangibles comprise capital costs in connection with the Tourism International Visitor Survey and National Visitor Survey.
No indicators of impairment were found for intangible assets.
No intangibles are expected to be sold or disposed of within the next 12 months, other than in the normal course of business operations.
Part 04 / Financial statements 201
4
Australian Trade Commission Notes to and forming part of the financial statements
36
Note 7E: Reconciliation of the Opening and Closing Balances of Intangibles
Reconciliation of the opening and closing balances of intangibles for 2014
Computer software internally developed
Computer software purchased
Other
intangibles internally developed Total
$’000 $’000 $’000 $’000
As at 1 July 2013
Gross book value 32,167 15,296 - 47,463
Accumulated amortisation and impairment (18,214) (11,709) - (29,923)
Total as at 1 July 2013 13,953 3,587 - 17,540
Additions
Purchase or internally developed 4,771 5,122 3,227 13,120
Revaluations and impairments recognised in other comprehensive income - - - -
Amortisation (4,917) (2,986) (1) (7,904)
Disposals -
Other - - - -
Other movements - (170) - (170)
Total as at 30 June 2014 13,807 5,553 3,226 22,586
Net book value as of 30 June 2014 represented by
Gross book value 34,576 20,134 3,227 57,937
Accumulated amortisation and impairment (20,769) (14,581) (1) (35,351)
Total as at 30 June 2014 13,807 5,553 3,226 22,586
Reconciliation of the opening and closing balances of intangibles for 2013
Computer software internally developed
Computer software purchased
Other
intangibles internally developed Total
$’000 $’000 $’000 $’000
As at 1 July 2012
Gross book value 30,990 17,289 - 48,279
Accumulated amortisation and impairment (18,934) (13,632) - (32,566)
Total as at 1 July 2012 12,056 3,657 - 15,713
Additions
Purchase or internally developed 5,901 2,505 - 8,406
Amortisation (4,059) (2,683) - (6,742)
Disposals
Other - (34) - (34)
Other movements 55 142 - 197
Total as at 30 June 2013 13,953 3,587 - 17,540
Total as at 30 June 2013 represented by
Gross book value 32,167 15,296 - 47,463
Accumulated amortisation and impairment (18,214) (11,709) - (29,923)
Total as at 30 June 2013 13,953 3,587 - 17,540
Australian Trade Commission Annual Report 2013-14 202
Australian Trade Commission Notes to and forming part of the financial statements
37
2014 2013
$'000 $'000
Note 7F: Other Non-Financial Assets
Prepayments - property leases 5,695 5,134
Prepayments - other 2,218 2,042
Total other non-financial assets 7,913 7,176
Other non-financial assets expected to be recovered
No more than 12 months 7,913 7,176
Total other non-financial assets 7,913 7,176
No indicators of impairment were found for other non-financial assets.
Note 8: Payables
Note 8A: Suppliers
Trade creditors and accruals 12,163 14,808
GST payable to the Australian Taxation Office 55 19
Total suppliers 12,218 14,827
Suppliers expected to be settled
No more than 12 months 11,778 14,571
More than 12 months 440 256
Total suppliers 12,218 14,827
Suppliers in connection with
Related parties 407 19
External parties 11,811 14,808
Total suppliers 12,218 14,827
Settlement was usually made within 30 days.
Note 8B: Other Payables
Wages and salaries 3,631 3,067
Lease incentives 172 412
Unearned revenue 1,359 861
Other 14 23
Total other payables 5,176 4,363
Other payables expected to be settled
No more than 12 months 5,084 4,191
More than 12 months 92 172
Total other payables 5,176 4,363
Part 04 / Financial statements 203
4
Australian Trade Commission Notes to and forming part of the financial statements
38
Note 9: Provisions 2014 2013
$'000 $'000
Note 9A: Employee Provisions
Leave 23,007 19,586
Separations and redundancies 10,351 9,715
Bonuses and overseas staff entitlements - 1,738
Other - 117
Total employee provisions 33,358 31,156
Employee provisions expected to be settled
No more than 12 months 12,612 13,264
More than 12 months 20,746 17,892
Total employee provisions 33,358 31,156
Note 9B: Other Provisions
Provision for onerous contracts 1,558 3,094
Provision for restoration 784 692
Total other provisions 2,342 3,786
Other provisions expected to be settled
No more than 12 months 1,519 1,377
More than 12 months 823 2,409
Total other provisions 2,342 3,786
Provision for onerous contracts Provision for
restoration Total
$’000 $’000 $’000
As at 1 July 2013 3,094 692 3,786
Additional provisions made 101 207 308
Amounts used (1,110) (25) (1,135)
Amounts reversed (527) (90) (617)
Total as at 30 June 2014 1,558 784 2,342
The Commission currently has 91 (2013: 90) agreements for the leasing of premises which have provisions requiring the Commission to restore the premises to their original condition at the conclusion of the lease. The Commission has made a provision to reflect the estimated present value of this obligation where it is considered probable that the clauses in the leases will be enforced by landlords. It is the Commission’s experience that this only applies to a minority of leases.
Australian Trade Commission Annual Report 2013-14 204
Australian Trade Commission Notes to and forming part of the financial statements
39
Note 10: Restructuring
Note 10A: Departmental Restructuring
2014
Tourism Policy, Programs and Research: Department of Industry1
$'000
FUNCTIONS ASSUMED
Assets recognised
Goods and services receivables 10
Appropriations receivable 1,215
Other property, plant and equipment 73
Other non-financial assets 194
Total assets recognised 1,492
Liabilities recognised
Employee provisions 2,848
Other payables 717
Total liabilities recognised 3,565
Net assets/(liabilities) recognised2,3 (2,073)
Income assumed
Recognised by the receiving entity 2,271
Recognised by the losing entity 2,701
Total income assumed 4,972
Expenses assumed
Recognised by the receiving entity 8,490
Recognised by the losing entity 8,939
Total expenses assumed 17,429
1. Responsibility for tourism policy, programs and research was assumed from the Department of Industry during 2013-14 due to an Administrative Arrangements Order made on 3 October 2013. 2. The net liabilities assumed from all entities were $2.073m. 3. In respect of functions assumed, the net book values of assets and liabilities were transferred to the Commission for no consideration.
Part 04 / Financial statements 205
4
Australian Trade Commission Notes to and forming part of the financial statements
40
Note 11: Cash Flow Reconciliation
2014 2013
$'000 $'000
Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement
Cash and cash equivalents as per
Cash flow statement 3,594 3,474
Statement of financial position 3,594 3,474
Discrepancy - -
Reconciliation of net cost of services to net cash from/(used by) operating activities Net (cost of)/contribution by services (190,538) (174,614)
Revenue from Government 176,760 159,962
Adjustments for non-cash items
Depreciation/amortisation 18,068 17,476
Net write down of non-financial assets 12 35
Loss on disposal of assets 43 205
Movements in assets and liabilities
Assets
(Increase)/Decrease in net receivables 712 4,376
(Increase)/Decrease in prepayments (543) (4,399)
Liabilities
Increase/(Decrease) in employee provisions and payables (646) 213
Increase/(Decrease) in supplier payables 1,215 (807)
Increase/(Decrease) in other payables 95 178
Increase/(Decrease) in other provisions (1,444) (807)
Net cash from/(used by) operating activities 3,734 1,818
Australian Trade Commission Annual Report 2013-14 206
Australian Trade Commission Notes to and forming part of the financial statements
41
Note 12: Contingent Assets and Liabilities
Claims for damages or costs Total
2014 2013 2014 2013
$'000 $'000 $'000 $'000
Contingent liabilities
Balance from previous period 127 232 127 232
New contingent liabilities recognised 64 127 64 127
Re-measurement - - - -
Obligations expired (127) (232) (127) (232)
Total contingent liabilities 64 127 64 127
Quantifiable Contingencies The Schedule of Contingencies contains $0.064m of contingent liabilities disclosure in respect to claims for damages or costs (2013: $0.127m). The amount represents an estimate of the Commission’s liability based on precedent in such cases. The Commission is defending the claims.
Significant Remote Contingencies The Commission has provided bank guarantees for a total of $0.536m (2013: $0.521m) in relation to property leases. These were not included in the Schedule of Contingencies.
Part 04 / Financial statements 207
4
Australian Trade Commission Notes to and forming part of the financial statements
42
Note 13: Senior Executive Remuneration
Note 13A: Senior Executive Remuneration Expenses for the Reporting Period 2014 2013
$ $
Short-term employee benefits
Salary 11,129,821 9,193,361
Other allowances 1,113,769 1,033,509
Total short-term employee benefits 12,243,590 10,226,870
Post-employment benefits
Superannuation 1,966,571 1,554,092
Total post-employment benefits 1,966,571 1,554,092
Other long-term benefits
Annual leave accrued 1,013,235 875,144
Long-service leave 433,063 386,518
Total other long-term employee benefits 1,446,298 1,261,662
Termination benefits 514,878 494,170
Total senior executive remuneration expenses1,2 16,171,337 13,536,794
1. Note 13A was prepared on an accrual basis. 2. Note 13A excludes acting arrangements and part-year service where total remuneration expensed for a senior executive was less than $195,000.
Australian Trade Commission Annual Report 2013-14 208
Australian Trade Commission Notes to and forming part of the financial statements
43
Note 13B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period
Average annual reportable
remuneration paid to substantive senior executives in 2014
Average annual reportable remuneration
1
Substantive
senior
executives
Reportable
salary
2
Contributed
superannuation
3
Reportable allowances
4
Bonus paid
5
Total
reportable remuneration
No.
$
$
$
$
$
Total reportable remuneration (including part
- time arrangements)
less than $195,000
11
116,163
17,732
-
-
133,895
$195,000 to $224,999
9
184,208
26,197
26
-
210,431
$225,000 to $254,999
11
210,342
30,049
-
-
240,391
$255,000 to $284,999
9
239,533
33,911
29
-
273,473
$285,000 to $314,999
10
265,956
29,515
-
-
295,471
$315,000 to $344,999
4
294,898
36,466
-
-
331,364
$345,000 to $374,999
6
312,304
43,287
-
-
355,591
$375,000 to $404,999
1
367,745
33,805
-
-
401,550
$435,000 to $464,999
1
397,213
45,085
-
-
442,298
$495,000 to $524,999
1
432,908
74,686
-
-
507,594
Total number of substantive senior executives
63
1. This table reports substantive senior executives
who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in t
he band.
2. 'Reportable
s alary' includes the following:
a) gross payments
(less any bonuses paid, which are separated out and dis
closed in the 'bonus paid' column);
b) reportable fringe benefits
(at the net amount prior to 'grossing up' for tax purposes)
; and
c) reportable employer superannuation contributions.
3. The 'contributed superannuation' amount is the average
cost to the Commission for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band
during the reporting period
.
4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line
on individuals' payment summaries.
5. The Commission does not pay bonuses to senior executives.
Part 04 / Financial statements 209
4
Australian Trade Commission Notes to and forming part of the financial statements
44
Note 13B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period (continued
)
Average annual
reportable remuneration paid to substantive senior executives in 2013
Average annual reportable remuneration
1
Substantive
senior
executives
Reportable
salary
2
Contributed
superannuation
3
Reportable allowances
4
Bonus paid
5
Total
reportable remuneration
No.
$
$
$
$
$
Total reportable remuneration (including part
- time arrangements):
less than $195,000
20
87,986
9,853
-
-
97,839
$195,000 to $224,999
11
183,132
25,887
-
-
209,019
$225,000 to $254,999
12
210,860
27,519
-
-
238,379
$255,000 to $284,999
12
235,385
29,724
-
-
265,109
$285,000 to $314,999
6
271,279
27,610
-
-
298,889
$315,000 to $344,999
7
293,632
36,699
-
-
330,331
$345,000 to $374,999
1
334,585
28,535
-
-
363,120
$375,000 to $404,999
1
331,183
57,498
-
-
388,681
$405,000 to $434,999
1
379,830
40,406
-
-
420,236
Total number of substantive senior executives
71
1. This table reports substantive senior executives who received remuneration during the reporting
period. Each row is an averaged figure based on headcount for individuals in the band.
2. 'Reportable s
alary' includes the following:
a) gross payments
(less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);
b) reportable fringe benefits
(at the net amount prior to 'grossing up' for tax purposes)
; and
c) reportable employer superannuation contributions.
3. The 'contributed superannuation' amount is the average cost to the Commission for the provision of superannuation ben
efits to substantive senior executives in that reportable remuneration band
during the reporting period
.
4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment
summaries.
5.
The Commission does not pay bonuses to senior executives.
Australian Trade Commission Annual Report 2013-14 210
Australian Trade Commission Notes to and forming part of the financial statements
45
Note 13C: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period
Average annual reportable remuneration paid to other
highly paid staff in 2014
Average annual reportable remuneration
1
Other highly paid staff
Reportable
salary
2
Contributed
superannuation
3
Reportable allowances
4
Bonus paid
5
Total
reportable remuneration
No.
$
$
$
$
$
Total reportable remuneration
(including part time arrangements):
$195,000 to $224,999
14
190,170
20,889
-
-
211,059
$225,000 to $254,999
11
217,016
20,384
-
-
237,400
$255,000 to $284,999
11
244,439
22,868
55
-
267,362
$285,000 to $314,999
5
276,517
26,930
-
-
303,447
Total number of other highly paid staff
41
1. This table reports staff:
a) who were employed by the
Commission during the reporting period;
b) whose reportable remuneration was $195,000 or more for the financial period; and c) who
were not required to be disclosed in
Table B disclosures.
2. 'Reportable salary' includes the following:
a)
gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid'
column);
b) reportable fringe benefits
(at the net amount prior to 'grossing up' for tax
purposes); and
c) reportable employer superannuation contributions.
3. The 'contributed superannuation' amount is the average
cost to the Commission for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the
reporting period
.
4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment
summaries
5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The
'bonus paid' within a particular band may vary between financial years due to
various factors such as individuals commencing with or leaving the entity during the financial year. The Commission has 60 to 70 Australian staff serving at overseas posts. Many of these staff, who are not senior executives, receive accommodation and other allowances which contribute to their
remuneration resulting in them receiving more than
$195,000 in total remuneration for the purposes of this note.
Part 04 / Financial statements 211
4
Australian Trade Commission Notes to and forming part of the financial statements
46
Average annual reportable remuneration paid to other highly paid staff in 2013
Average annual reportable remuneration
1
Other highly paid staff
Reportable
salary
2
Contributed
superannuation
3
Reportable allowances
4
Bonus paid
5
Total reportable remuneration
No.
$
$
$
$
$
Total reportable remuneration (including part time arrangements):
$195,000 to $224,999
18
189,964
18,945
-
381
209,290
$225,000 to $254,999
8
217,559
20,758
-
-
238,317
$255,000 to $284,999
7
240,696
23,480
-
877
265,053
$285,000 to $314,999
4
269,368
24,246
-
1,475
295,089
Total number of other highly paid staff
37
1. This table reports staff:
a) who were employed by the Commission during the reporting period;
b) whose reportable remuneration was $195,000 or more for the financial period; and
c) who were not required to be disclosed in
Table B disclosures.
2. 'Reportable salary' includes the following:
a)
gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);
b) reportable fringe benefits
(at the net amount prior to 'grossing up' for tax
purposes); and
c) reportable employer superannuation contributions.
3. The 'contributed superannuation' amount is the average cost to the Commission for the provision of superannuation benefits
to other highly paid staff in that reportable remuneration band during the
reporting period.
4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment
summaries
5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.
The Commissio
n has 60 to 70 Australian staff serving at overseas posts. Many of these staff, who are not senior executives, receive accommodation and other allowances which contribute to their
remuneration resulting in them receiving more than $1
95,000 in total remuneration for the purposes of this note.
Australian Trade Commission Annual Report 2013-14 212
Australian Trade Commission Notes to and forming part of the financial statements
47
Note 14: Remuneration of Auditors 2014 2013
$'000 $'000
Financial statement audit services were provided free of charge to the Commission by the Australian National Audit Office (ANAO).
Fair value of services received
Financial statement audit services 160 160
Other services 17 -
Total fair value of services received 177 160
KPMG was engaged by the ANAO in 2013-14 to provide financial statement audit services to the Commission. The nature of other services provided by KPMG was the provision of financial reporting tools and associated training and support.
Note 15: Financial Instruments
Note 15A: Fair Value of Financial Instruments
Carrying Fair Carrying Fair
amount value amount value
2014 2014 2013 2013
$'000 $'000 $'000 $'000
Financial Assets
Cash 3,594 3,594 3,474 3,474
Receivables for goods and services 2,897 2,897 3,674 3,674
Total financial assets 6,491 6,491 7,148 7,148
Financial Liabilities
Trade creditors 12,163 12,163 14,808 14,808
Other payables 5,176 5,176 4,363 4,363
Total financial liabilities 17,339 17,339 19,171 19,171
Financial Assets The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.
Financial Liabilities The net fair values for trade creditors and other payables approximate their carrying amounts.
Part 04 / Financial statements 213
4
Australian Trade Commission Notes to and forming part of the financial statements
48
Note 15B: Credit Risk
The Commission's senior management has endorsed policies and procedures for debt management (including the provision of credit terms) to minimise the incidence of credit risk.
The Commission has no significant exposures to any concentrations of credit risk.
The Commission's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated at Note 15A.
Credit quality of financial assets not past due or individually determined as impaired
Not past due nor impaired Not past due nor impaired
Past due or impaired Past due or impaired
2014 2013 2014 2013
$'000 $'000 $'000 $'000
Cash 3,594 3,474 - -
Receivables for goods and services 2,780 3,303 147 533
Total 6,374 6,777 147 533
Ageing of financial assets that were past due but not impaired in 2014
0 to 30 31 to 60 61 to 90 90+
days days days days Total
$'000 $'000 $'000 $'000 $'000
Receivables for goods and services 83 16 10 8 117
Total 83 16 10 8 117
Ageing of financial assets that were past due but not impaired in 2013
0 to 30 31 to 60 61 to 90 90+
days days days days Total
$'000 $'000 $'000 $'000 $'000
Receivables for goods and services 57 9 304 1 371
Total 57 9 304 1 371
Australian Trade Commission Annual Report 2013-14 214
Australian Trade Commission Notes to and forming part of the financial statements
49
Note 15C: Liquidity Risk
The Commission undertakes cash forecasting to ensure it can meet its financial liabilities as they fall due.
Maturities for non-derivative financial liabilities in 2014
On within 1 between 1 between 2 more than
demand year to 2 years to 5 years 5 years Total
$'000 $'000 $'000 $'000 $'000 $'000
Trade creditors 12,163 - - - - 12,163
Other payables 5,004 80 47 35 10 5,176
Total 17,167 80 47 35 10 17,339
Maturities for non-derivative financial liabilities 2013
On within 1 between 1 between 2 more than
demand year to 2 years to 5 years 5 years Total
$'000 $'000 $'000 $'000 $'000 $'000
Trade creditors 14,808 - - - - 14,808
Other payables 3,951 240 81 77 14 4,363
Total 18,759 240 81 77 14 19,171
The Commission had no derivative financial liabilities in either 2014 or 2013.
Part 04 / Financial statements 215
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Australian Trade Commission Notes to and forming part of the financial statements
50
Note 15D: Market Risk
Currency risk Foreign currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Commission is exposed to foreign exchange currency risk primarily through undertaking certain transactions denominated in foreign currency. The Commission is exposed to foreign exchange risk for many currencies.
The following table details the effect on the net cost of services and equity as at 30 June from a 11.5% favourable/unfavourable change in the Australian dollar against all currencies with all other variables held constant.
Sensitivity analysis of the risk that the Commission is exposed to for 2014
Effect on
Change in Net cost of
Risk risk variable services Equity
variable % $'000 $'000
Currency risk
Exposed currencies + 11.5 654 654
Currency risk
Exposed currencies - 11.5 (654) (654)
Sensitivity analysis of the risk that the Commission is exposed to for 2013
Effect on
Change in Net cost of
Risk risk variable services Equity
variable % $'000 $'000
Currency risk
Exposed currencies + 15.7 861 861
Currency risk
Exposed currencies - 15.7 (861) (861)
The above amounts relate to the unrealised foreign exchange movements. Realised movements in foreign exchange are covered by adjustments to the Commission's appropriations.
The method used to arrive at the possible risk of 11.5% was based on both statistical and non-statistical analyses. The statistical analysis has been based on main currencies’ movements for the last five years. This information is then revised and adjusted for reasonableness under the economic circ*mstances. The five main currencies the Commission has exposure to are US dollars, Euros, Chinese Renminbi, Japanese Yen and Indian Rupees.
Interest rate risk The Commission has no material exposure to interest rate risk.
Other price risk The Commission is exposed to a variety of immaterial commodity price risks relating to various supply contracts.
Australian Trade Commission Annual Report 2013-14 216
Australian Trade Commission Notes to and forming part of the financial statements
51
Note 16: Financial Assets Reconciliation
2014 2013
$'000 $'000
Total financial assets as per statement of financial position 46,702 59,807
Less: Non-financial instrument components
Appropriations receivable (39,570) (52,096)
Other receivables (641) (563)
Total non-financial instrument components (40,211) (52,659)
Total financial assets as per financial instruments note 6,491 7,148
Part 04 / Financial statements 217
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Australian Trade Commission Notes to and forming part of the financial statements
52
Note 17: Administered Expenses 2014 2013
$'000 $'000
Note 17A: Employee Benefits
Wages and salaries 4,502 5,171
Superannuation
Defined contribution plans 190 215
Defined benefit plans 673 640
Fringe benefits tax 20 16
Other employee expenses 34 35
Total employee benefits 5,419 6,077
Note 17B: Suppliers
Goods and services supplied or rendered
Operating expenses 672 822
Total goods and services supplied or rendered 672 822
Services rendered in connection with
External parties 672 822
Total services rendered 672 822
Total goods and services supplied or rendered 672 822
Other suppliers
Operating lease rentals in connection with
External parties
Minimum lease payments 579 606
Total other suppliers 579 606
Total suppliers 1,251 1,428
Note 17C: Grants
Private sector
Export Market Development Grants 116,178 118,380
Asian Business Engagement Plan Grants 1,759 -
Total grants 117,937 118,380
Note 18: Administered Income
Revenue
Non-Taxation Revenue
Note 18A: Other Revenue
Other 372 6
Total other revenue 372 6
Australian Trade Commission Annual Report 2013-14 218
Australian Trade Commission Notes to and forming part of the financial statements
53
Note 19: Administered Financial Assets 2014 2013
$'000 $'000
Note 19A: Cash and Cash Equivalents
Cash at bank - 46
Total cash and cash equivalents - 46
Note 19B: Trade and Other Receivables
Other receivables
Other 96 117
GST receivable from the Australian Taxation Office 7 12
Total other receivables 103 129
Total trade and other receivables (gross) 103 129
Less impairment allowance
Other (84) (85)
Total impairment allowance (84) (85)
Total trade and other receivables (net) 19 44
Trade and other receivables (net) expected to be recovered
No more than 12 months 13 34
More than 12 months 6 10
Total trade and other receivables (net) 19 44
Trade and other receivables (gross) aged as follows
Not overdue 7 28
Overdue by
More than 90 days 96 101
Total trade and other receivables (gross) 103 129
Impairment allowance aged as follows
Not overdue - -
Overdue by
More than 90 days 84 85
Total impairment allowance 84 85
Other receivables are with entities external to the Australian Government. Credit terms were within 30 days (2013: 30 days).
Part 04 / Financial statements 219
4
Australian Trade Commission Notes to and forming part of the financial statements
54
Note 19: Administered Financial Assets (continued)
Reconciliation of the Impairment Allowance
Movements in relation to 2014
Other
receivables Total
$'000 $'000
Opening balance 85 85
Amounts recovered and reversed (1) (1)
Closing balance 84 84
Movements in relation to 2013
Other
receivables Total
$'000 $'000
Opening balance
Impairment allowance 1 July 2012 85 85
Closing balance 85 85
Australian Trade Commission Annual Report 2013-14 220
Australian Trade Commission Notes to and forming part of the financial statements
55
Note 20: Administered Payables 2014 2013
$'000 $'000
Note 20A: Suppliers
Trade creditors and accruals 39 75
Other creditors 5 4
Total suppliers 44 79
Suppliers expected to be settled
No more than 12 months 32 62
More than 12 months 12 17
Total suppliers 44 79
Suppliers in connection with
External parties 44 79
Total suppliers 44 79
Note 20B: Grants
Private sector:
ABE Plan grants payable 473 -
Total grants 473 -
Grants expected to be settled
No more than 12 months 473 -
Total grants 473 -
Note 20C: Other Payables
Salaries and wages 179 160
Total other payables 179 160
Other payables are expected to be settled
No more than 12 months 179 160
Total other payables 179 160
Part 04 / Financial statements 221
4
Australian Trade Commission Notes to and forming part of the financial statements
56
Note 21: Administered Provisions
Note 21A: Employee Provisions
Leave 1,709 2,331
Total employee provisions 1,709 2,331
Employee provisions are expected to be settled
No more than 12 months 603 578
More than 12 months 1,106 1,753
Total employee provisions 1,709 2,331
Note 21B: Grants Provisions
Provision for EMDG grants 8,996 6,438
Total grants provisions 8,996 6,438
Grant provisions expected to be settled
No more than 12 months 8,996 6,438
Total grants provisions 8,996 6,438
Provision for grants Total
$’000 $’000
As at 1 July 2013 6,438 6,438
Additional provisions made 8,321 8,321
Amounts used (5,763) (5,763)
Total as at 30 June 2014 8,996 8,996
Australian Trade Commission Annual Report 2013-14 222
Australian Trade Commission Notes to and forming part of the financial statements
57
Note 22: Administered Cash Flow Reconciliation 2014 2013
$'000 $'000
Reconciliation of cash and cash equivalents as per administered schedule of assets and liabilities to administered cash flow statement
Cash and cash equivalents as per
Schedule of administered cash flows - 46
Schedule of administered assets and liabilities - 46
Discrepancy - -
Reconciliation of net cost of services to net cash from/(used) operating activities Net (cost of)/contribution by services (124,235) (125,879)
Movement in assets and liabilities
Assets
(Increase)/Decrease in net receivables 25 7
Liabilities
Increase/(Decrease) in employee provisions (622) (47)
Increase/(Decrease) in supplier payables (35) 6
Increase/(Decrease) in grants payable 473 -
Increase/(Decrease) in other payables 19 1
Increase/(Decrease) in grants provisions 2,558 (1,932)
Net cash from/(used by) operating activities (121,817) (127,844)
Part 04 / Financial statements 223
4
Australian Trade Commission Notes to and forming part of the financial statements
58
Note 23: Administered Contingent Assets and Liabilities
Claims for damages or costs
2014 2013
$'000 $'000
Contingent liabilities
Balance from previous period 2,558 1,539
New contingent liabilities recognised 2,132 3,869
Re-measurement 19 88
Liabilities realised (1,796) (1,814)
Obligations expired (2,030) (1,124)
Total contingent liabilities 883 2,558
Net contingent assets/(liabilities) 883 2,558
Quantifiable Administered Contingencies The Schedule of Administered Contingencies contains $0.883m of contingent liabilities in respect to claims for damages or costs (2013: $2.558m). The amount represents an estimate of the Commission’s liability based on outstanding grants appeals.
Significant Remote Administered Contingencies The Commission had no significant remote administered contingencies.
Note 24: Administered Financial Instruments
Note 24A: Fair Value of Financial Instruments
Carrying Fair Carrying Fair
amount value amount value
2014 2014 2013 2013
$'000 $'000 $'000 $'000
Financial Assets
Cash - - 46 46
Receivables 12 12 32 32
Total financial assets 12 12 78 78
Financial Liabilities
Supplier and other payables 223 223 239 239
Grants payable and provisions 9,469 9,469 6,438 6,438
Total financial liabilities 9,692 9,692 6,677 6,677
Financial assets The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.
Financial liabilities The net fair values for trade, other creditors and payables approximate their carrying amounts.
There is no significant exposure to credit, liquidity or market risk.
Australian Trade Commission Annual Report 2013-14 224
Australian Trade Commission Notes to and forming part of the financial statements
59
Note 25: Administered Financial Assets Reconciliation 2014 2013
$'000 $'000
Total financial assets as per schedule of administered assets and liabilities 19 90
Less: Non-financial instrument components
Other receivables (7) (12)
Total non-financial instrument components (7) (12)
Total financial assets as per administered financial instruments note 12 78
Part 04 / Financial statements 225
4
Australian Trade Commission Notes to and forming part of the financial statements
60
Note 26:
Appropriations
Note 26A: Annual Appropriations ('Recoverable GST exclusive')
Annual Appropriations for 2014
Appropriation Act
FMA Act
Total
appropriation
Appropriation applied in 2014 (current and prior
years)
Annual
Appropriation
Appropriations
reduced
1,3
AFM
2
Section 30
Section 31
Section 32
Variance
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Departmental
Ordinary annual services
172,007
-
-
-
24,820
-
196,827
197,651
(824)
Other services
Equity
-
-
-
-
-
-
-
-
-
Total
departmental
172,007
-
-
-
24,820
-
196,827
197,651
(824)
Administered items
Ordinary annual services
Administered items
141,740
(14,539)
-
393
-
-
127,594
122,210
5,384
Total administered
141,740
(14,539)
-
393
-
-
127,594
122,210
5,384
1. Appropriations reduced under Appropriation Acts (No. 1, 3, 5) 2013-14: sections 10, 11, and 12 under Appropriation Acts (No. 2, 4, 6) 2013-14: sections 12, 13, and 14. Departmental appropriations do not lapse at
financial year-
end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and reques
t that the Finance Minister reduce that
appropriation. The reduction in the appropriation is effected by the Finance
Minister's determination and is disallowable by Parliament. As with departmental appropriations, the responsible Minister
may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce tha
t appropriation. For administered appropriations reduced under section 11 of
Appropriation Acts (Nos. 1, 3, 5) 2013-14 and section 12 of Appropriation Acts (Nos. 2, 4, 6) 2013-14, the appropriation is taken to be reduced to the required amount specified in Table D of this note
once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister’s deter
mination, which is disallowable by Parliament.
2.
Advance to the Finance Minister (AFM)
- Appropriation Acts (Nos. 1, 3, 5) 2013-14: section 13 and Appropriation Acts (Nos. 2, 4, 6) 2013-14: section 15.
3.
In 201
3-14
, there was no adjustment that met the recognition criteria of a formal addition or reduction in revenue (in accordance with
FMO Div 101).
Australian Trade Commission Annual Report 2013-14 226
Australian Trade Commission Notes to and forming part of the financial statements
61
Note 26A: Annual Appropriations ('Recoverable GST exclusive') (continued)
Annual Appropriations for 2013
Appropriation Act
FMA Act
Total
appropriation
Appropriation applied in 2013 (current and prior
years)
Variance
Annual
Appropriation
Appropriations
reduced
1,3
AFM
2
Section 30
Section 31
Section 32
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Departmental
Ordinary annual services
160,800
-
-
-
17,879
-
178,679
179,814
(1,135)
Other services
Equity
-
-
-
-
-
-
-
-
-
Total departmental
160,800
-
-
-
17,879
-
178,679
179,814
(1,135)
Administered
Ordinary annual services
Administered items
150,400
(24,413)
-
5
-
-
125,992
127,849
(1,857)
Total administered
150,400
(24,413)
-
5
-
-
125,992
127,849
(1,857)
1. Appropriations reduced under Appropriation Acts (No. 1, 3, 5) 2012-13: sections 10, 11, 12 and 15 under Appropriation Acts (No. 2, 4, 6) 2012-13: sections 12, 13, 14 and 17. Departmental a
ppropriations do not lapse at financial year
- end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and reques
t that the Finance Minister
reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.
As with departmental appropriations, the responsible
Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos. 1, 3, 5) 2012-13 and section 12 of Appropriation Acts (Nos. 2, 4, 6) 2012-13, the appropriation is taken to be reduced to the required amount specified in Table D of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Min
ister’s determination, which is disallowable by Parliament.
2. Advance to the Finance Minister (AFM)
- Appropriation Acts (Nos. 1, 3, 5) 2012-13: section 13 and Appropriation Acts (Nos. 2, 4, 6) 2012-13: section 15.
3.
In 201
2-13
, there was no adjustment that met the recognition criteria of a for
mal addition or reduction in revenue (in accordance with FMO Div 101).
Part 04 / Financial statements 227
4
Australian Trade Commission Notes to and forming part of the financial statements
62
Note 26B: Departmental and Administered Capital Budgets ('Recoverable GST exclusive')
2014 Capital Budget Appropriations
Capital
Budget Appropriations applied in 2014 (current and prior years)
Variance
Appropriation Act
FMA Act
Total Capital
Budget
Appropriations
Payments for non-financial
assets
3
Payments for other purposes
Total
payments
Annual Capital Budget
Appropriations
reduced
2
Section 32
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Departmental
Ordinary annual services
- Departmental
Capital Budget
1
11,020
-
-
11,020
23,752
-
23,752
(12,732)
Administered
Ordinary annual services
- Administered
Capital Budget
1
-
-
-
-
-
-
-
-
1.
Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No.
1, 3, 5). They form part of ordinary annual services and are not separately identified in the
Appropriation Acts. For more information on ordinary annual services appropriation, please see
Note 26A: Annual Appropriations.
2.
Appropriations reduced under Appropriation Acts (No. 1,
3, 5) 2013-14: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
3.
Payments made
for non-
financial assets include purchase of assets, expenditure on assets which has been capitalised, costs incurred to make good an
asset to its original condition, and the capital
repayment component of finance leases.
Australian Trade Commission Annual Report 2013-14 228
Australian Trade Commission Notes to and forming part of the financial statements
63
Note
26B: Departmental and Administered Capital Budgets ('Recoverable GST exclusive') (continued)
2013 Capital Budget Appropriations
Capital Budget Appropriations applied in 2013
(current and prior years)
Variance
Appropriation
Act
FMA Act
Total Capital
Budget
Appropriations
Payments for non-financial
assets
3
Payments for other purposes
Total
payments
Annual Capital
Budget
Appropriations
reduced
2
Section 32
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Departmental
Ordinary annual services
- Departmental
Capital Budget
1
18,492
-
-
18,492
13,758
-
13,758
4,734
Administered
Ordinary annual services
- Administered
Capital Budget
1
-
-
-
-
-
-
-
-
1.
Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No.
1, 3, 5). They form part of ordinary annual services and are not separately identified in the
Appropriation Acts. For more information on ordinary annual services appropriation, please see
Note 26A: Annual Appropriations.
2.
Appropriations reduced under Appropriation Acts (No. 1,
3, 5) 2012-13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
3.
Payments made
for non-
financial assets include purchase of assets, expenditure on assets which has been capitalised, costs incurred to make good an
asset to its original condition, and the capital
repayment component of finance leases.
Part 04 / Financial statements 229
4
Australian Trade Commission Notes to and forming part of the financial statements
64
Note 26C: Unspent Annual Appropriations ('Recoverable GST exclusive')
2014 2013
$'000 $'000
Departmental
Appropriation Act (No. 2) 2007-081 - 4,105
Appropriation Act (No. 2) 2008-091 - 113
Appropriation Act (No. 2) 2009-101 - 600
Appropriation Act (No. 1) 2011-12 - 24,566
Appropriation Act (No. 1) 2012-13 - 8,397
Appropriation Act (No. 1) 2012-13 - Capital Budget (DCB) - 13,368
Appropriation Act (No. 3) 2012-13 - 1,769
Appropriation Act (No. 1) 2013-14 16,767 -
Appropriation Act (No. 1) 2013-14 - Capital Budget (DCB) 4,460 -
Appropriation Act (No. 3) 2013-14 12,454 -
Appropriation Act (No. 3) 2013-14 626 -
Total departmental 34,307 52,918
Administered
Appropriation Act (No. 1) 2008-091 - 2,000
Appropriation Act (No. 1) 2009-101 - 340
Appropriation Act (No. 1) 2012-13 2,300 31,082
Appropriation Act (No. 1) 2013-14 8,535 -
Appropriation Act (No. 3) 2013-14 14,840 -
Total administered 25,675 33,422
Note: 1. These Acts were repealed by the Statute Stocktake (Appropriations) Act 2013 on 1 July 2013.
Australian Trade Commission Annual Report 2013-14 230
Australian Trade Commission Notes to and forming part of the financial statements
65
Note 26D: Reduction in Administered Items
('Recoverable GST exclusive')
Reduction in Administered Items for 2014
1,2
Amount required
3 - by Appropriation Act
Total amount
required
3
Total amount appropriated
4
Total
reduction
5
Ordinary Annual Services
Act (No. 1)
Act (No. 3)
Act
(No. 5)
Outcome 1
126,900,000.00
301,309.34
-
127,201,309.34
141,740,000.00
14,538,690.66
Outcome 2
-
-
-
-
-
-
Total
126,900,000.00
301,309.34
-
127,201,309.34
141,740,000.00
14,538,690.66
1.
Numbers in this section of the
table must be disclosed to the cent.
2. Administered items for 2013-14
were reduced to these amounts when these financial statements were tabled in Parliament as part of the
Commission's 2013-14 annual report. This reduction is
effective in 201
4-15, but
the amounts are reflected in Table A in the 201
3-14
financial statements in the column 'Appropriations reduced' as they are adjustments to
2013-14 appropriations.
3.
Amount required as per Appropriation Act (Act 1 s11; Act 2 s12).
4.
Total amount appropria
ted in 2013-14.
5.
Total reduction effective in 201
4-15.
Reduction in Administered Items for 2013
1,2
Amount required
3 - by Appropriation Act
Total amount
required
3
Total amount appropriated
4
Total
reduction
5
Ordinary Annual Services
Act (No. 1)
Act (No. 3)
Act (No. 5)
Outcome 1
125,987,386.53
-
125,987,386.53
150,400,000.00
24,412,613.47
Outcome 2
-
-
-
-
-
Total
125,987,386.53
-
125,987,386.53
150,400,000.00
24,412,613.47
1.
Numbers in this section of the table
must be disclosed to the cent.
2. Administered items for 2012-13 were reduced to these amounts when these financial statements were tabled in Parliament as part of the
Commission's 2012-13 annual report. This reduction was
effective in 201
3-14, but the amounts were reflected in Table A in the 2012-13 financial statements in the column 'Appropriations reduced' as they were adjustments to 2012-13 appropriations. 3.
Amount required as per Appropriation Act (Act 1 s11; Act 2 s12).
4.
Total amount appropriated i
n 2012-13.
5.
Total reduction effective in 201
3-14.
Part 04 / Financial statements 231
4
Australian Trade Commission Notes to and forming part of the financial statements
66
Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund
On 8 July 2013 legal advice was received that indicated there could be breaches of Section 83 of the Constitution under certain circ*mstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. The Commission undertook to review its processes and controls over payments for these items to minimise the possibility
for future breaches as a result of these payments. The Commission has completed this assessment and concluded that there is a low risk of the certain circ*mstances mentioned in the legal advice applying to the Commission. The Commission has not identified any specific breaches or potential breaches of Section 83 in respect of these items.
Note 27: Special Accounts
Administered Payments and Receipts for Other Entities1 Services for Other Entities and Trust Moneys2
2014 2013 2014 2013
$'000 $'000 $'000 $'000
Balance brought forward from previous period 100 100 - -
Increases
Other receipts 10,224 9,072 1,233 -
Total increases 10,224 9,072 1,233 -
Available for payments 10,324 9,172 1,233 -
Decreases
Departmental
Payments made - - (286) -
Total departmental - - (286) -
Administered
Payments made (10,224) (9,072) - -
Balance returned to the Official Public Account - - - -
Total administered (10,224) (9,072) - -
Total decreases (10,224) (9,072) (286) -
Total balance carried to the next period 100 100 947 -
1. Appropriation: Financial Management and Accountability Act 1997 section 20.
Establishing Instrument: Financial Management and Accountability Determination 2006/15.
Purpose: To make payments overseas on behalf of other entities, and to make payments to other entities for amounts received overseas on their behalf.
2. Appropriation: Financial Management and Accountability Act 1997 section 20.
Establishing Instrument: Financial Management and Accountability Determination 2008/05.
Purpose: To disburse amounts temporarily held on trust, and to disburse amounts in connection with services performed on behalf of other entities.
Australian Trade Commission Annual Report 2013-14 232
Australian Trade Commission Notes to and forming part of the financial statements
67
Note 28: Compensation and Debt Relief
The Commission did not provide any departmental or administered compensation or debt relief in both the current and prior reporting periods.
Note 29: Assets Held in Trust
The Commission had no assets held in trust in both the current and prior reporting periods.
Part 04 / Financial statements 233
4
Australian Trade Commission Notes to and forming part of the financial statements
68
Note 30:
Reporting of Outcomes
As the Commission is a services organisation its outputs are directly related to the time
its service staff spend on the provision of services. Business Unit Managers complete an annual survey
of time spent on outputs which is then crossed with the cost of operating the Business Units to arrive at costs directly attr
ibutable to each output. These costs are converted to percentages
which are then used as drivers to allocate full costs (that is all direct and indirect costs) to each output.
Note 30A: Net Cost of Outcome Delivery
Outcome 1
Outcome 2
Total
2014
2013
2014
2013
2014
2013
$'000
$'000
$'000
$'000
$'000
$'000
Departmental
Expenses
201,911
183,021
12,864
9,169
214,775
192,190
Own
- source income
(22,785)
(16,737)
(1,452)
(839)
(24,237)
(17,576)
Administered
Expenses
124,607
125,885
-
-
124,607
125,885
Income
(372)
(6)
-
-
(372)
(6)
Net cost of outcome delivery
303,361
292,163
11,412
8,330
314,773
300,493
Australian Trade Commission Annual Report 2013-14 234
Australian Trade Commission Notes to and forming part of the financial statements
69
Note 30B: Major Classes of Departmental Expenses, Income, Assets and Liabilities by
Outcome
Outcome 1
Outcome 2
Total
2014
2013
2014
2013
2014
2013
$'000
$'000
$'000
$'000
$'000
$'000
Expenses
Employee benefits
117,176
105,237
7,465
5,272
124,641
110,509
Suppliers
67,072
60,565
4,273
3,034
71,345
63,599
Depreciation and amortisation
16,986
16,642
1,082
834
18,068
17,476
Write
- down and impairment of assets
11
33
1
2
12
35
Losses from asset sales
40
195
3
10
43
205
Foreign exchange losses
626
349
40
17
666
366
Total
expenses
201,911
183,021
12,864
9,169
214,775
192,190
Own
- source income
Revenue from government
166,174
152,330
10,586
7,632
176,760
159,962
Sale of goods and rendering of services
19,719
14,173
1,256
710
20,975
14,883
Rental
income
80
283
5
14
85
297
Other revenue
2,680
2,129
171
107
2,851
2,236
Other gains
306
152
20
8
326
160
Total own
- source income
188,959
169,067
12,038
8,471
200,997
177,538
Assets
Cash and cash equivalents
3,379
3,308
215
166
3,594
3,474
Trade and other receivables
40,526
53,645
2,582
2,688
43,108
56,333
Land and buildings
13,487
10,647
859
533
14,346
11,180
Property, plant and equipment
17,922
20,853
1,142
1,045
19,064
21,898
Intangibles
21,233
16,703
1,353
837
22,586
17,540
Other non
- financial assets
7,439
6,834
474
342
7,913
7,176
Total assets
103,986
111,990
6,625
5,611
110,611
117,601
Liabilities
Suppliers
11,486
14,120
732
707
12,218
14,827
Other payables
4,866
4,155
310
208
5,176
4,363
Employee provisions
31,360
29,670
1,998
1,486
33,358
31,156
Other provisions
2,202
3,605
140
181
2,342
3,786
Total liabilities
49,914
51,550
3,180
2,582
53,094
54,132
Outcomes 1 and 2 are described in Note 1.1. Net costs
shown include intra-
government costs that are eliminated in calculating the actual Budget outcome.
Refer to Outcome 1 Resourcing Table and
Outcome 2 Resourcing Table of this Annual Report.
Part 04 / Financial statements 235
4
Australian Trade Commission Notes to and forming part of the financial statements
70
Note 30C: Major Classes of Administered Expenses, Income, Asset
s, and Liabilities by Outcome
Outcome 1
Outcome 2
Total
2014
2013
2014
2013
2014
2013
$'000
$'000
$'000
$'000
$'000
$'000
Expenses
Employee benefits
5,419
6,077
-
-
5,419
6,077
Suppliers
1,251
1,428
-
-
1,251
1,428
Grants
117,937
118,380
-
-
117,937
118,380
Total expenses
124,607
125,885
-
-
124,607
125,885
Income
Other revenue
372
6
-
-
372
6
Total income
372
6
-
-
372
6
Assets
Cash and cash equivalents
-
46
-
-
-
46
Trade and other receivables
19
44
-
-
19
44
Total assets
19
90
-
-
19
90
Liabilities
Suppliers
44
79
-
-
44
79
Grants
473
-
-
-
473
-
Other payables
179
160
-
-
179
160
Employee provisions
1,709
2,331
-
-
1,709
2,331
Grants provisions
8,996
6,438
-
-
8,996
6,438
Total liabilities
11,401
9,008
-
-
11,401
9,008
Outcomes 1 and 2 are described in
Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome. Refer to Outcome 1 Resourcing Table and
Outcome 2 Resourcing Table of this Annual Report.
Australian Trade Commission Annual Report 2013-14 236
Australian Trade Commission Notes to and forming part of the financial statements
71
Note 31: Net Cash Appropriation Arrangements
2014 2013
$'000 $'000
Total comprehensive income/(loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 7,987 7,328
Plus: depreciation/amortisation expenses previously funded through revenue appropriation (18,068) (17,476)
Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (10,081) (10,148)
1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.
APPENDIXES
A Staffing overview 2 38
B Austrade and TradeStart locations in Australia and TradeStartpartners 243
C Austrade’s Service Charter 24 6
D Work health and safety 2 48
E Financial and staffing resources 2 50
F Ecologically sustainable development and environmentalperformance 253
G Advertising and market research 2 56
H List of requirements 2 62
PART
05
Australian Trade Commission Annual Report 2013-14 238
Staffing overview
Table A1: Ongoing and non-ongoing employees (excluding overseas-engaged employees), full-time and part-time at 30 June 2014
Non-ongoing employees Ongoing employees Total Total
Full-time Part-time Full-time Part-time 30 June 2014 30 June 2013
21 5 464 56 546 527
Note: Includes staff on leave without pay and long-term leave. Includes CEO.
Table A2: Employees by category of employment at 30 June 2014
Category Female Male
Total
30 June 2014
Total
30 June 2013
Ongoing 262 258 520 485
Non-ongoing 16 10 26 42
Overseas-engaged employees 294 192 486 476
Total 572 460 1,032 1,003
Percentage of total 55 45
Note: Overseas-engaged employees includes temporary staff. Includes staff on leave without pay and long-term leave. Includes CEO.
APPENDIX A
Part 05 / Appendixes. Appendix A: Staffing overview 239
5
Table A3: Employees by classification, gender and location at 30 June 2014
Category
Australia female Australia male
Overseas female Overseas male
Total staff 30 June 2014 Total staff 30 June 2013
AOPL 1 0 0 4 22 26 21
AOPL 2 0 0 45 14 59 66
AOPL 3 0 0 132 48 180 177
AOPL 4 0 0 105 92 197 182
AOPL 5 0 0 8 16 24 30
APL 1 25 6 0 0 31 31
APL 2 90 43 0 1 134 112
APL 3 80 73 3 3 159 153
APL 4 30 52 9 19 110 107
APL 5 16 20 5 9 50 64
SES 1 9 16 5 11 41 39
SES 2 4 6 2 5 17 17
SES 3 0 3 0 0 3 3
CEO 0 1 0 0 1 1
Total 254 220 318 240 1,032 1,003
Note: Includes temporary staff, and staff on leave without pay and long-term leave. Includes CEO.
Australian Trade Commission Annual Report 2013-14 240
Table A4: Employees by location and gender at 30 June 2014
Market / location
Australia-based female
Australia-based male
Australia-based total
OEE female
OEE male
OEE total
Total
30 June 2014
Total
30 June 2013
Market
East Asian Growth Markets
9 19 28 131 54 185 213 232
Established Markets
8 13 21 109 58 167 188 165
Growth and Emerging Markets
7 16 23 54 80 134 157 150
Subtotal 24 48 72 294 192 486 558 547
Location
ACT 131 117 248 0 0 0 248 186
NSW 82 67 149 0 0 0 149 175
NT 1 0 1 0 0 0 1 2
QLD 7 8 15 0 0 0 15 17
SA 6 2 8 0 0 0 8 12
TAS 0 1 1 0 0 0 1 2
VIC 21 20 41 0 0 0 41 52
WA 6 5 11 0 0 0 11 10
Subtotal 254 220 474 0 0 0 474 456
Total 278 268 546 294 192 486 1,032 1,003
OEE = overseas-engaged employee
Note: Includes CEO, temporary staff, and staff on leave without pay and long-term leave. Excludes attached agency staff, trade consultants, contractors and TradeStart employees. At 30 June 2014, there were 75 attached agency staff within Austrade. Enabler staff are included in the market in which they are physically located (for example, staff from the Frankfurt office are included in Established Markets).
Part 05 / Appendixes. Appendix A: Staffing overview 241
5
Table A5: Austrade staff by group or division at 30 June 2014
Group/division
Australia-based
Overseas-engaged employees
Total staff 30 June 2014
Total staff 30 June 2013
Established Markets 24 154 178 155
East Asian Growth Markets 30 180 210 228
Growth and Emerging Markets 25 128 153 149
Australian Operations 139 0 139 167
Tourism, Education and Corporate Operations
234 18 252 207
International Operations Australia 15 0 15 13
Human Resources 37 6 43 40
Office of the CEO 19 0 19 12
Inoperative 23 0 23 32
Total 546 486 1,032 1,003
Note: Includes CEO, temporary staff, and staff on leave without pay and long-term leave. Excludes attached agency staff, trade consultants, contractors and TradeStart employees. International staff with a corporate focus are counted in their corporate division. Seventy-four per cent of staff (770 employees) were employed in client-focused operations in Australia and overseas.
Table A6: Senior Executive Service by gender at 30 June 2014
Category Female Male Total 30 June 2014 Total 30 June 2013
SES 1 14 27 41 39
SES 2 6 11 17 17
SES 3 0 3 3 3
Total 20 41 61 59
Note: Includes staff on leave without pay and long-term leave. Includes staff who are acting SES.
Australian Trade Commission Annual Report 2013-14 242
Table A7: Senior Executive Service by classification and location at 30 June 2014
Category Australia Overseas Total 30 June 2014 Total 30 June 2013
SES 1 25 16 41 39
SES 2 10 7 17 17
SES 3 3 0 3 3
Total 38 23 61 59
Table A8: Senior Executive Service gains and losses during 2013-14
2013-14 2012-13
Gains 11 12
Losses 9 14
Table A9: Employees by type of workplace arrangement at 30 June 2014
Collective agreement
Common law agreement Section 24(1) determination(a)
Individual flexibility arrangement
Classification Salary range ($) No. Salary
range ($) No. Salary range ($) No. Salary
range ($) No. Total
Cadet na 0 na 0 na 0 na 0 0
APS 1-4 APL 1
47,310- 67,651 30 na 0 na 0 — (b) 1 31
APS 5-6 APL 2
70,357- 86,215 131 na 0 na 0 — (b) 3 134
Exec. Level 1 APL 3 91,818- 103,284
151 na 0 na 0 103,765-
120,480
8 159
Exec. Level 2 APL 4-5 107,414- 145,388
131 na 0 na 0 129,777-
157,255 29 160
SES — (b) 3 155,035-
288,249
58 na 0 na 0 61
Total 446 58 0 41 545
(a) D etermination made under section 24(1) of the Public Service Act 1999.
(b) W here there is a possibility that payments to individuals may be identified (for example, five or fewer employees at a classification level), the salary range is not shown.
Note: Excludes CEO. Includes three substantive non-SES employees who are acting SES.
Part 05 / Appendixes. Appendix B: Austrade and TradeStart locations in Australia and TradeStartpartners 243
5
Austrade and TradeStart locations in Australia and TradeStartpartners
Figure B1: Austrade’s national network, including TradeStart, at 30 June 2014
ACT VICTORIA
WESTERN AUSTRALIA
NORTHERN TERRITORY
QUEENSLAND
SOUTH AUSTRALIA
TASMANIA
NEW SOUTH WALES
Perth
Darwin
Townsville
Newcastle
Sydney Wollongong
Adelaide
Melbourne
Canberra
Bunbury
Rockhampton
Cairns
Bundaberg
Nowra
Gosford Orange
Wagga Wagga
Mt Gambier
Tamworth
Brisbane
Port Augusta
Sunshine Coast
Gold Coast
TradeStart location Austrade location
Mackay
Riverland
Toowoomba
Port Macquarie
Adelaide - North Adelaide - South
Launceston
Miranda North Sydney Penrith
Melbourne - West Melbourne - South East
Geelong
Bendigo
Melbourne - North
Hobart
APPENDIX B
Australian Trade Commission Annual Report 2013-14 244
Table B1: TradeStart locations and partners, 2013-14
Location TradeStart partner
NSW
Sydney non-CBD North (North Sydney) New South Wales Business Chamber (NSWBC)
Sydney non-CBD South (Miranda) NSWBC
Sydney non-CBD West (Penrith) NSWBC
Port Macquarie New South Wales Department of Trade, Investment,
Regional Infrastructure and Services (NSW Trade & Investment)
Gosford NSW Trade & Investment
Nowra NSW Trade & Investment
Orange NSW Trade & Investment
Tamworth NSW Trade & Investment
Wagga Wagga NSW Trade & Investment
VIC
Ballarat and Geelong Export Council of Australia (ECA)
Bendigo and Mildura ECA
Melbourne non-CBD North Australian Industry Group (Ai Group)
Melbourne non-CBD South East Ai Group
Melbourne non-CBD West Ai Group
QLD
Brisbane non-CBD NSWBC
Gold Coast Gold Coast City Council
Bundaberg Trade & Investment Queensland (TIQ)
Rockhampton TIQ
Mackay TIQ
Cairns TIQ
Sunshine Coast TIQ
Toowoomba TIQ
Part 05 / Appendixes. Appendix B: Austrade and TradeStart locations in Australia and TradeStartpartners 245
5
Location TradeStart partner
WA
Bunbury (South and South West WA) South West Development Commission
Perth non-CBD Western Australian Department of State Development
SA
Adelaide non-CBD North South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy (SA DMITRE)
Adelaide non-CBD South SA DMITRE
Mt Gambier SA DMITRE
Port Augusta SA DMITRE
Riverland SA DMITRE
NT
Darwin Chamber of Commerce Northern Territory
TAS
Launceston Tasmanian Chamber of Commerce and Industry
Australian Trade Commission Annual Report 2013-14 246
Austrade’s Service Charter Austrade’s Service Charter sets out the level of service you can expect from Austrade.
Our service values
Austrade will endeavour to:
⺠provide information and insight based on our experience and networks in Australia and around the world
⺠be professional when assisting your organisation
⺠be flexible and responsive to meet your particular business needs.
Our service standards for Australian exporters and education providers
⺠We will clearly explain our service offerings as they apply to your business needs.
⺠We will explain any fees associated with our services and provide you with a written quote before commencing work on your behalf.
⺠If you contact us, we will respond within two working days of receiving your enquiry. If your enquiry is complex and we cannot respond immediately, we will inform you of our progress and work towards an agreed set of goals and deadlines.
⺠We will maintain your confidentiality in accordance with the Australian Government’s legal and regulatory requirements, as well as government policies regarding the disclosure of information to Parliament and the Australian Government.
⺠We will endeavour to connect your organisation with high-potential international business opportunities.
⺠We will provide you with clear information about Austrade’s Export Market Development Grants (EMDG) scheme, and will provide advice regarding your eligibility and the application and assessment process. We will process your application promptly and efficiently in accordance with the EMDG legislation.
⺠If Austrade is unable to assist with your request, we will endeavour to refer you to appropriate service providers that may be better able to address your enquiry.
⺠In line with Australia’s anti-bribery laws, we will not provide business-related services to any party that we are aware has breached laws prohibiting bribery and related behaviour. We will also report credible evidence of any breach to the relevant authorities.
Our service standards for international organisations seeking to invest in Australia or buy products or services from Australia
⺠We will endeavour to introduce you to Australian business connections that can help you achieve your goals.
⺠We will clearly explain the opportunities and sources of assistance that may be available to you within Austrade and from other organisations.
⺠If you contact us, we will respond within two working days of receiving your enquiry. If your enquiry is complex and we cannot respond immediately, we will inform you of our progress and work towards an agreed set of goals and deadlines.
APPENDIX C
Part 05 / Appendixes. Appendix C: Austrade’s Service Charter 247
5
⺠We will maintain your confidentiality in accordance with the Australian Government’s legal and regulatory requirements, as well as government policies regarding the disclosure of information to Parliament and the Australian Government.
⺠To assist you with your business needs, Austrade may provide your information to other Australian Government departments and Australian state and territory governments.
⺠If Austrade is unable to assist with your request, we will endeavour to refer you to appropriate service providers that may be better able to address your enquiry.
⺠In line with Australia’s anti-bribery laws, we will not provide business-related services to any party that we are aware has breached laws prohibiting bribery and related behaviour. We will also report credible evidence of any breach to the relevant authorities.
Austrade’s multicultural plan
Under the Australian Government’s multicultural access and equity policy, government programmes and services should be accessible by all eligible Australians, respond to their needs, and deliver equitable outcomes for them regardless of their cultural or linguistic background.
Austrade is committed to ensuring that Australia’s culturally and linguistically diverse exporters are aware of our services and programmes, and have the potential to access our services.
Our 2013-2015 plan for implementing this vision is available on the Austrade website, www.austrade.gov.au.
Measuring our performance
From time to time, Austrade may seek your feedback directly or through a satisfaction survey. Your feedback helps us to improve our service delivery in Australia and overseas, and to identify issues that are important to you.
We welcome your feedback at all times. Simply call us, write to us or send us an email. If you have a problem you need resolved, please raise it directly with an Austrade staff member or write to the Austrade Services Manager.
If at any stage you are dissatisfied with how we are handling or have handled a complaint, you may contact an office of the Commonwealth Ombudsman and/or the Privacy Commissioner.
Australian Trade Commission Annual Report 2013-14 248
Work health and safety In accordance with Schedule 2, Part 4 of the Work Health and Safety Act 2011 (WHS Act), Austrade is required to provide details of the following matters in its annual report:
⺠initiatives taken during the year to ensure the health, safety and welfare at work of workers who carry out work for the agency
⺠health and safety outcomes (including the impact on injury rates of workers) achieved as a result of the initiatives taken during the year or previous initiatives
⺠statistics of any notifiable incidents of which the agency becomes aware during the year that arose out of the conduct of undertakings by the agency
⺠any investigations conducted during the year that relate to businesses or undertakings, including details of all notices given to the agency during the year under Part 10 of the WHS Act
⺠such other matters required by guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.
Austrade seeks at all times to provide a safe and healthy working environment for employees and others in its workplaces. Austrade employees have access to work health and safety (WHS) information from the Workplace Support Adviser, the WHS Project Manager, human resources managers and through the Austrade intranet.
In April 2012, Comcare accepted an enforceable undertaking by Austrade. The undertaking contained a comprehensive schedule of actions to be completed by 2 April 2014. In particular, Austrade committed to working with Comcare to improve electrical contractor safety management. In December 2013, Austrade published the
Electrical contractor safety program guide to assist government, businesses and the electrical industry in the safe procurement of electrical services. The guide was produced without copyright to allow its adaptation by other industries looking to produce a similar document. The enforceable undertaking was completed in March 2014 and serves as a public declaration of Austrade’s commitment to work health and safety.
As part of the undertaking, Austrade also engaged an external expert in WHS management systems to work with the agency to create an enhanced, comprehensive and integrated WHS management system for Austrade by April 2014. The system was independently audited in March 2014 and the audit demonstrated that Austrade has a healthy safety culture across its global network.
During the year, a number of management initiatives were undertaken to reinforce Austrade’s WHS management arrangements and improve the safety culture across the organisation. Specific WHS initiatives and programmes conducted in 2013-14 included:
⺠continuation of the twice-yearly global WHS forum where staff provide feedback and suggestions for improvements to the agency’s safety management system
⺠briefing for the CEO, the Executive Group and all Senior Executive Service staff, facilitated by an external legal practitioner in WHS, to report on recent developments in WHS
⺠workshops for senior Austrade staff offshore, to explain their duties under the WHS Act in relation to WHS due diligence and the practical steps they must take to promote safety at work, at events and while travelling
APPENDIX D
Part 05 / Appendixes. Appendix D: Work health and safety 249
5
⺠workshop for overseas-based human resources managers and finance managers to explain their role in promoting safety
⺠provision of WHS training modules in the Austrade online induction package, with completion mandatory for all staff. This included WHS refresher training, which was completed by 901 staff during 2013
⺠introduction of twice-yearly online compliance reporting for each Austrade office to ensure the health and safety features provided are maintained and serviced, hazards and risks are eliminated or managed, and full legislative compliance is achieved, where reasonably practicable
⺠creation of further online information resources to help workers understand their responsibilities under the WHS Act
⺠refinement of online incident notification and reporting processes to aid compliance with the WHS Act
⺠electrical safety inspections of all Austrade offices and residential properties to ensure staff are provided the highest level of electrical protection possible
⺠voluntary free health checks and influenza vaccinations for Australia-based staff.
In 2013-14, Austrade notified Comcare of three incidents in compliance with the WHS Act. None of the incidents were investigated by Comcare. Table D1 provides three-year information on workplace incidents notified by Austrade to Comcare under health and safety legislation.
Table D1: Workplace incidents notified under health and safety legislation
2011-12 2012-13 2013-14
Notifications 1 2 3
Incidents investigated by Comcare
0 0 0
The first incident in 2013-14 occurred in an offshore office and involved an employee of another government agency who experienced a medical incident within the Austrade tenancy. The person was conveyed to hospital and admitted for treatment and later returned to full duties. Austrade notified the incident in accordance with horizontal responsibilities for co-located agencies. The incident was also reported to Comcare by the person’s home agency.
The second incident occurred in an Australian office involving an Austrade employee who was travelling on business from another office. The employee experienced a medical episode from a pre-existing condition. The employee was admitted to hospital and later returned to full duties.
The third incident occurred offshore and involved the tragic death of an Austrade overseas-engaged employee in a vehicle accident.
Australian Trade Commission Annual Report 2013-14 250
Financial and staffing resources Table E1: Agency resource statement, 2013-14
Actual available appropriation for 2013-14 $’000
(A)
Payments made 2013-14 $’000
(B)
Balance remaining 2013-14 $’000
(A)-(B)
Ordinary annual services
Departmental appropriation
Prior-year departmental appropriation 51,474 47,980 3,494
Departmental appropriation 183,027 148,720 34,307
Section 31(a) relevant agency receipts 24,820 24,820 —
Total 259,321 221,520 37,801
Administered expenses
Outcome 1 147,822 122,147 25,675
Total ordinary annual services 407,143 343,667 63,476
Other services
Departmental non-operating
Equity injections (current and prior years) 4,818 4,818 —
Total other services 4,818 4,818 —
Total net resourcing for Austrade 411,961 348,485 63,476
(a) S ection 31 of the Financial Management and Accountability Act 1997.
APPENDIX E
Part 05 / Appendixes. Appendix E: Financial and staffing resources 251
5
Table E2: Expenses and resources for outcomes, 2013-14
Expenses and resources for Outcome 1
Outcome 1: Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments
Budget(a) $’000
Actual expenses $’000 Variation
$’000
Programme 1.1: Trade, education and investment promotion
Departmental expenses
Departmental appropriation(b) 168,340 184,619 16,279
Expenses not requiring appropriation in the budget year(c) 17,944 17,292 (652)
Total for programme 1.1 186,284 201,911 15,627
Programme 1.2: Export Market Development Grants scheme
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) 125,400 122,848 (2,552)
Total for programme 1.2 125,400 122,848 (2,552)
Programme 1.3: Asian Business Engagement Plan
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) 1,500 1,759 259
Total for programme 1.3 1,500 1,759 259
Outcome 1 totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) 126,900 124,607 (2,293)
Departmental expenses
Ordinary annual services (Appropriation Bill No. 1) 168,340 184,619 16,279
Expenses not requiring appropriation in the budget year(c) 17,944 17,292 (652)
Total expenses for Outcome 1 313,184 326,518 13,334
Average staffing level (number) 895 970 75
(a) F ull-year budget.
(b) D epartmental appropriation combines ordinary annual services (Appropriation Bill No. 1) and revenue from independent sources (section 31 of the Financial Management and Accountability Act 1997).
(c) E xpenses not requiring appropriation in the budget year are made up of depreciation expense, amortisation expense and audit fees.
Note: The EMDG scheme expended $125.9 million appropriated on grants and administration in 2013-14. The amounts shown in the table reflect the accrual position in 2013-14.
Australian Trade Commission Annual Report 2013-14 252
Table E2: Expenses and resources for outcomes, 2013-14 (continued)
Expenses and resources for Outcome 2
Outcome 2: The protection and welfare of Australians abroad through timely and responsive consular and passport services in specific locations overseas
Budget(a) $’000
Actual expenses $’000 Variation
$’000
Programme 2.1: Consular and passport services
Departmental expenses
Departmental appropriation(b) 12,429 11,762 (667)
Expenses not requiring appropriation in the budget year(c) — 1,102 1,102
Total for programme 2.1 12,429 12,864 435
Outcome 2 totals by appropriation type
Departmental expenses
Ordinary annual services (Appropriation Bill No. 1) 12,429 11,762 (667)
Expenses not requiring appropriation in the budget year(c) — 1,102 1,102
Total expenses for Outcome 2 12,429 12,864 435
Average staffing level 35 39 4
(a) F ull-year budget.
(b) D epartmental appropriation combines ordinary annual services (Appropriation Bill No. 1) and revenue from independent sources (section 31 of the Financial Management and Accountability Act 1997).
(c) E xpenses not requiring appropriation in the budget year are made up of depreciation expense, amortisation expense and audit fees.
Part 05 / Appendixes. Appendix F: Ecologically sustainable development and environmentalperformance 253
5
Ecologically sustainable development and environmentalperformance This appendix summarises Austrade’s performance with respect to the requirements of section 516A of the Environment Protection and Biodiversity Conservation Act 1999.
Energy consumption
Austrade reported energy consumption in its Australian operations as required by the Energy Efficiency in Government Operations Policy. The Energy use in the Australian Government’s operations report 2007-08, released in December 2009, outlines the levels of energy usage and emissions for the Australian Government, at both whole-of-government and individual agency levels.
During 2013-14, Austrade’s energy consumption again decreased, with total electrical energy consumption as a tenant at 775,732 kilowatt hours, a reduction of 282,978 kilowatt hours on the 2009-10 baseline data. Austrade has continued with existing approaches to minimise its environmental impact. Austrade’s investment in
green energy for 2013-14 included the purchase of 121,329 kilowatt hours for the computer centres in its Canberra office. Table F1 shows Austrade’s energy consumption for the last five years, and the amount this has decreased from the 2009-10 baseline measurement.
Data centres
During 2013-14, Austrade invested in new data centre facilities with significantly improved energy efficiency. Servers in the data centre facilities have been designed to achieve the Department of Finance’s server utilisation target of a 70 per cent monthly peak. The power usage effectiveness (PUE) is between 1.4 and 1.3 and is trending downward. This is well within the Department of Finance’s PUE targets to be reached by July 2015 of 1.7 to 2.2, and is less than half the average Australian Government pre-2008 PUE of 3. This equates to a saving of approximately 1,000 tonnes of carbon dioxide annually.
Table F1: Austrade’s energy consumption, 2009-10 to 2013-14
Reporting year Total electrical energy consumption (kilowatt hours) Reduction of kilowatt hours from
2009-10 baseline
2009-10 1,058,710 -
2010-11 957,820 100,890
2011-12 943,675 115,035
2012-13 817,705 241,005
2013-14 775,732 282,978
APPENDIX F
Australian Trade Commission Annual Report 2013-14 254
Videoconferencing
Austrade’s global videoconferencing facilities provide significant energy efficiencies through reduced travel for Austrade staff and for staff of other government agencies who are authorised to use the facility. In 2013-14, Austrade performed approximately 37,000 videoconferences with approximately 43,000 hours of calls, from 104end points.
Printers
The printer replacement project, completed in late 2013, provided a reduction in the number of printers in Austrade’s global network from 207 to 142. This has provided superior energy efficiency through lower power consumption and standby mode, and a reduction in printing costs due to improved black and white to colour print ratio.
Earth Hour
Austrade provided staff with advice on how they could participate in Earth Hour 2014, both personally and through office activity, and coordinated the participation of Austrade offices across Australia and overseas. Where practicable, six national and 16 international Austrade offices switched off lights, printers and photocopiers for the weekend of 29-30 March 2014.
Waste
Austrade continued to develop approaches for minimising its environmental impact and reducing waste, including setting duplex printing and copying as the default option and establishing recycling systems for a range of office supplies, consumables and general waste from workspaces and staff kitchens.
Improved metering on printer usage has also enabled better management of consumables. Building managers throughout the Austrade network continue to work with building owners to identify mechanisms to reduce waste and implement better practice initiatives.
Water
Water consumption is difficult for Austrade to measure on a broad scale as most of its tenancies are not separately metered for water consumption. Austrade’s facility and property managers continue to work with building owners, where possible, to improve water consumption and introduce water-saving measures, such as waterless urinals, dual-flush toilets and flow restrictors on taps.
The efficient water cooling in Austrade’s new data centre facilities will contribute to a saving of more than 4,000,000 litres of clean drinking water annually.
Austrade’s head office in Sydney
During 2013, Austrade’s environmental sustainability activities related to carpet care and maintenance in its head office in Sydney saved 5,989 litres of water, 838 megajoules of energy and 0.29 tonnes of carbon dioxide. This equates to a total saving of 55,279 litres of water, 7,737megajoules of energy and 2.71 tonnes of carbon dioxide for the eight years from 2005 to 2013.
Building management advised Austrade in March 2014 that the National Australian Built Environment Rating System rating for the building had increased from a 4.5 to a 5-star rating.
Part 05 / Appendixes. Appendix F: Ecologically sustainable development and environmentalperformance 255
5
Principles of ecologically sustainable development
Austrade operates under the Australian Trade Commission Act 1985 and administers the Export Market Development Grants scheme pursuant to the Export Market Development Grants Act 1997. While neither Act makes specific reference to ecologically sustainable development or sustainability principles, Austrade continues to adhere to government policy and ministerial directives on sustainability.
Table F2 provides five-year trend information on Austrade’s energy efficiency performance.
Table F2: Energy efficiency performance, 2009-10 to 2013-14
Performance measure Indicator 2009-10 2010-11 2011-12 2012-13 2013-14
Total consumption of energy—includes all energy consumed when undertaking the functions of the agency, such as energy consumed for office buildings and transportation
Amount of electricity consumed (kWh)
2,493,829 2,293,430 2,199,260 2,121,797 2,129,455
Amount of gas consumed
Not
available
Not
available
Not
available
Not
available
Not
available
Amount of other fuels consumed (litres of petrol)(a)
Not
available
5,048 8,217 6,820 8,688
Total consumption of green energy— includes the purchase of energy from sustainable sources
Amount of green energy consumed (kWh)
137,860 128,150 119,571 114,620 121,329
Relative energy uses—includes green energy use relative to non-renewable energy use and energy use per employee
Proportion of green energy in total energy consumption
Green energy purchased for 10 per cent of Canberra computer centre usage per year since 2009-10
Amount of total energy consumed per employee
Not
available
Not
available
Not
available
Not
available
Not
available
kWh = kilowatt hours (a) E stimate based on calculating kilometres travelled multiplied by fuel consumption rating.
Note: Due to Austrade being a tenant, some of the performance indicators listed on www.environment.gov.au/esd in relation to waste and water are not directly measured, so they have not been included in the table. Austrade works with building managers to ensure environmental initiatives are in place where possible. Austrade recycles waste paper, and encourages the use of recycled paper.
Australian Trade Commission Annual Report 2013-14 256
Advertising and market research During 2013-14, Austrade conducted the Future Unlimited digital and social media advertising campaign. Further information is available at www.austrade.gov.au and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available at www.finance.gov.au/advertising/index.html.
For the 2013-14 financial year, particulars of payments of more than $12,400 (inclusive of GST) must be reported. As required under section 311A
of the Commonwealth Electoral Act 1918, below and in the following pages are details of agencies and organisations contracted by Austrade to provide advertising and market research services.
Table G1 shows total advertising and market research expenditure for the year. Tables G2, G3, G4 and G5 show individual payments in each category that were more than the $12,400 threshold.
All amounts are reported at budget exchange rates.
Table G1: Total advertising and market research expenditure by category, 2013-14
Category Value ($)
Advertising agencies 24,605.35
Market research organisations(a) 5,557,564.89
Polling organisations nil
Direct mail organisations 90,117.79
Media advertising organisations 1,040,568.87
Total 6,712,856.90
(a) A ustrade’s market research expenditure in 2013-14 has significantly increased compared to the previous year, as it now undertakes considerably more market research after gaining responsibility for Tourism Research Australia under machinery-of-government changes on 3 October 2013.
APPENDIX G
Part 05 / Appendixes. Appendix G: Advertising and market research 257
5
Table G2: Individual payments of more than $12,400 to media advertising organisations, 2013-14
Organisation Description Amount ($)
Kaus Group Future Unlimited education exhibition advertising (Myanmar) 12,810.63
Adcorp Australia Pty Ltd General recruitment advertising 23,472.80
Universal McCann Study in Australia advertising (website launch) 220,158.79
Universal McCann Study in Australia advertising (website launch) 19,414.38
Universal McCann Australia Unlimited advertisem*nt (Architecture Australia) 15,126.27
Ho-Yuan Marketing Co. Ltd Future Unlimited education exhibition advertising (Taiwan) 51,168.54
Universal McCann Future Unlimited advertising (digital/social media) 75,637.85
Universal McCann Future Unlimited advertising (digital/social media) 28,367.00
Universal McCann Future Unlimited advertising (digital/social media) 110,220.79
Universal McCann Future Unlimited advertising (digital) 13,282.30
Universal McCann Future Unlimited advertising (digital) 15,947.45
Universal McCann Australia Week in China 2014 advertising (digital display) 40,946.68
1haodian Australia Unlimited products festival advertising (China) 23,511.00
Adcorp Australia Pty Ltd Export Market Development Grants scheme advertising 17,112.43
Four Square Private Limited Future Unlimited education exhibition advertising (Sri Lanka) 12,547.08
Total 679,723.97
Table G3: Individual payments of more than $12,400 to direct mail organisations, 2013-14
Organisation Description Amount ($)
Teradata Australia Maintenance, hosting and reporting 12,539.81
Total 12,539.81
Table G4: Individual payments of more than $12,400 to advertising agencies, 2013-14
Organisation Description Amount ($)
Ogilvy & Mather Pty Ltd Creative content for Future Unlimited digital advertisem*nts 14,668.50
Total 14,668.50
Australian Trade Commission Annual Report 2013-14 258
Table G5: Individual payments of more than $12,400 to market research organisations, 2013-14
Organisation Description Amount ($)
AECOM Australia Pty Ltd (payment 1) Research detailing the value proposition and site opportunities for investment into off-grid/
edge-of-grid renewable electricity/hybrid generation and energy storage in Australia
40,600.00
AECOM Australia Pty Ltd (payment 2) As above 17,400.00
AECOM Australia Pty Ltd (payment 3)
As above 42,000.00
AECOM Australia Pty Ltd (payment 4) As above 18,000.00
KPMG Australia (payment 1) Research briefs for agribusiness, resource technology, services and processing sector investment priorities
30,000.00
KPMG Australia (payment 2) As above 30,000.00
Bremer & Co (payment 1) Research to attract foreign direct investment and enhance international collaborations in innovation as it relates to materials sciences
40,000.00
Bremer & Co (payment 2) As above 18,080.00
Sannam S4 Consulting Private Ltd Research to identify challenges, opportunities and business models for foreign collaboration in VET sector in India
14,733.74
Taylor Nelson Sofres (payment 1) Brand Australia Global Food Strategy—Three-phase research to develop brand position for Australian food
42,597.50
Taylor Nelson Sofres (payment 2) As above 83,875.00
Taylor Nelson Sofres (payment 3) As above 42,597.50
Taylor Nelson Sofres (payment 4) As above 83,875.00
Taylor Nelson Sofres (payment 5) As above—additional sample 44,000.00
Wallis Consulting Group Client service improvement survey 2012-13 44,782.10
ORIMA Research (payment 1) Fraud control survey 15,697.00
ORIMA Research (payment 2) As above 22,385.00
ORIMA Research Perceptions and understanding of regions within
Tasmania
22,385.00
Part 05 / Appendixes. Appendix G: Advertising and market research 259
5
Organisation Description Amount ($)
ORC International Pty Ltd (payment 1) International Visitor Survey 2013 supplementary research—Japan and Korea
75,094.40
ORC International Pty Ltd (payment 2) As above 75,094.40
ORC International Pty Ltd (payment 1) International Visitor Survey 2014 supplementary research—Japan and Korea
54,587.28
ORC International Pty Ltd (payment 2) As above 109,174.56
ORC International Pty Ltd (payment 3) As above 109,174.56
ORC International Pty Ltd International Visitor Survey interviews December 2013 181,885.55
ORC International Pty Ltd International Visitor Survey interviews January 2014 221,536.59
ORC International Pty Ltd International Visitor Survey interviews February 2014 221,536.59
ORC International Pty Ltd International Visitor Survey interviews March 2014 221,536.59
ORC International Pty Ltd International Visitor Survey interviews April 2014 221,536.59
ORC International Pty Ltd International Visitor Survey interviews May 2014 221,536.59
ORC International Pty Ltd International Visitor Survey interviews June 2014 221,536.59
ORC International Pty Ltd National Visitor Survey interviews December 2013 173,528.28
ORC International Pty Ltd National Visitor Survey interviews January 2014 197,036.96
ORC International Pty Ltd National Visitor Survey interviews February 2014 197,036.96
ORC International Pty Ltd National Visitor Survey interviews March 2014 197,036.96
ORC International Pty Ltd National Visitor Survey interviews April 2014 197,036.96
ORC International Pty Ltd National Visitor Survey interviews May 2014 197,036.96
ORC International Pty Ltd National Visitor Survey interviews June 2014 197,036.96
ORC International Pty Ltd National Visitor Survey Q3 September 2013 57,842.76
ORC International Pty Ltd International Visitor Survey Q4 December 2013 and 2013 annual processing 291,016.88
Australian Trade Commission Annual Report 2013-14 260
Organisation Description Amount ($)
ORC International Pty Ltd International Visitor Survey Q1 March 2014 73,845.53
ORC International Pty Ltd International Visitor Survey Q2 June 2014 73,845.53
ORC International Pty Ltd National Visitor Survey Q1 March 2014 65,678.99
ORC International Pty Ltd National Visitor Survey Q2 June 2014 65,678.99
ORC International Pty Ltd International Visitor Survey—airport rental annual fee 55,000.00
iSPY Communications (payment 1) Destination Visitors Survey—Use of communication channels to promote regional non-business events (SA and VIC)
15,950.00
iSPY Communications (payment 2) As above 22,000.00
Colmar Brunton Destination Visitors Survey—Perceptions of
Queensland as a holiday destination
32,279.50
Instinct and Reason (payment 1) Destination Visitors Survey—Analysis of domestic food and wine visitors (NSW) 16,490.00
Instinct and Reason (payment 2) As above 16,490.00
Taylor Nelson Sofres (payment 1) Destination Visitors Survey—Analysis of domestic and international food and wine visitors (WA)
23,100.00
Taylor Nelson Sofres (payment 2) As above 26,400.00
GfK Australia Pty Ltd (payment 1) Destination Visitors Survey—Impact of regional non-business events on visitation and regional dispersal (SA and VIC)
13,200.00
GfK Australia Pty Ltd (payment 2) As above 31,350.00
GfK Australia Pty Ltd (payment 3) As above 18,700.00
BDA Marketing Planning Pty Ltd (payment 1) Destination Visitors Survey—Perceptions of tourism offerings (ACT)
15,400.00
BDA Marketing Planning Pty Ltd (payment 2) As above 15,400.00
BDA Marketing Planning Pty Ltd (payment 3) As above 15,400.00
BDA Marketing Planning Pty Ltd (payment 4) Destination Visitors Survey—Perceptions of tourism offerings (ACT)
15,400.00
Part 05 / Appendixes. Appendix G: Advertising and market research 261
5
Organisation Description Amount ($)
Marketrade (payment 1) Destination Visitors Survey—Analysis of economic impact of visitor information centres (NSW)
13,750.00
Marketrade (payment 2) As above 15,000.00
Marketrade (payment 3) As above 15,000.00
Hall & Partners OpenMind (payment 1) Destination Visitors Survey—Potential of destination touch points to increase visitor
expenditure (NT)
46,728.00
Hall & Partners OpenMind (payment 2) As above 21,373.00
AMR Interactive Brand Australia—2013 Country Report Trak
research
214,500.00
AMR Interactive Market and social research—Country
Reports 2014
55,000.00
Mekong Economics Ltd Research on opportunities for aquaculture and fisheries products, equipments, technologies and services in Vietnam
44,000.00
Total (a) 5,328,807.36
(a) A ustrade’s market research expenditure in 2013-14 has significantly increased compared to the previous year, as it now undertakes considerably more market research after gaining responsibility for Tourism Research Australia under machinery-of-government changes on 3 October 2013.
Australian Trade Commission Annual Report 2013-14 262
List of requirements This list of requirements is prepared in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies approved by the Joint Committee of Public Accounts and Audit on 29 May 2014. Austrade’s compliance with these requirements is shown in Table H1.
Table H1: List of requirements
Description Requirement Page
Letter of transmittal Mandatory ii
Table of contents Mandatory i
Index Mandatory 271
Glossary Mandatory 270
Contact officer(s) Mandatory 280
Internet home page address and internet address for report Mandatory 280
Review by Chief Executive Officer
Review by Chief Executive Officer Mandatory 5-7
Summary of significant issues and developments Suggested Inside front cover,
iii, 5-7
Overview of agency’s performance and financial results Suggested Inside front cover, 3, 14-17, 85, 97, 101-2, 106-18, 160-1, 250-2
Outlook for following year Suggested iv, 7
Significant issues and developments—portfolio Portfolio
departments— suggested
Not applicable
Agency overview
Role and functions Mandatory Inside front cover,
2-3
Organisational structure Mandatory 12
Outcome and programme structure Mandatory 10-11
Where outcome and programme structures differ from PBS/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change
Mandatory Inside front cover, 10-11
Portfolio structure Portfolio
departments— mandatory
Not applicable
APPENDIX H
Part 05 / Appendixes. Appendix H: List of requirements 263
5
Description Requirement Page
Report on performance
Review of performance during the year in relation to programmes and contribution to outcomes Mandatory 13-130
Actual performance in relation to deliverables and key performance indicators set out in PBS/PAES or other portfolio statements
Mandatory 14-17, 85, 97,
101-2, 106-18
Where performance targets differ from the PBS/PAES, details of both former and new targets, and reasons for the change Mandatory 10-11
Narrative discussion and analysis of performance Mandatory 13-130
Trend information Mandatory Inside front cover,
3, 27, 88-9, 91, 140, 156, 161, 249, 255
Significant changes in nature of principal functions/services Suggested Inside front cover, iii, 2, 5, 10-11, 105
Performance of purchaser/provider arrangements If applicable, suggested 79
Factors, events or trends influencing agency performance Suggested Inside front cover, 5-7, 10-11, 18, 59, 87, 105, 117, 119-20, 160
Contribution of risk management in achieving objectives Suggested 102-3, 132, 136-7, 139-41
Performance against service charter customer service standards, complaints data, and the agency’s response to complaints
If applicable, mandatory
27, 246-7
Discussion and analysis of the agency’s financial performance Mandatory 3, 160-1
Discussion of any significant changes in financial results from the prior year, from budget or anticipated to have a significant impact on future operations
Mandatory 3, 93, 160-1
Agency resource statement and summary resource tables by outcomes Mandatory 250-2
Management and accountability
Corporate governance
Agency heads are required to certify that their agency complies with the Commonwealth Fraud Control Guidelines Mandatory ii
Australian Trade Commission Annual Report 2013-14 264
Description Requirement Page
Statement of the main corporate governance practices in place Mandatory 132-41
Names of the senior executive and their responsibilities Suggested 133-5
Senior management committees and their roles Suggested 136-7
Corporate and operational plans and associated performance reporting and review Suggested 136, 138
Internal audit arrangements including approach adopted to identifying areas of significant financial or operational risk and arrangements to manage those risks
Suggested 140-1
Policy and practices on the establishment and maintenance of appropriate ethical standards Suggested 132, 136, 137,
149-50
How nature and amount of remuneration for SES officers is determined Suggested 146-7, 241, 242
External scrutiny
Significant developments in external scrutiny Mandatory 141-2
Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner Mandatory 94, 142
Reports by the Auditor-General, a parliamentary committee, the Commonwealth Ombudsman or an agency capability review Mandatory 141
Management of human resources
Assessment of effectiveness in managing and developing human resources to achieve agency objectives Mandatory 142-52
Workforce planning, staff retention and turnover Suggested 142-7
Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and Australian Workplace Agreements (AWAs)
Suggested 147, 242
Training and development undertaken and its impact Suggested 132-3, 143-7,
Work health and safety performance Suggested 150, 248-9
Productivity gains Suggested 142-3, 156-7
Statistics on staffing Mandatory Inside front cover,
3, 142-3, 146, 148, 238-42, 250-2
Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs Mandatory 147, 242
Performance pay Mandatory 147-8
Part 05 / Appendixes. Appendix H: List of requirements 265
5
Description Requirement Page
Assets management
Assessment of effectiveness of assets management If applicable, mandatory 153, 155-8
Purchasing
Assessment of purchasing against core policies and principles Mandatory 155
Consultants
The annual report must include a summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website
Mandatory 155-6
Australian National Audit Office access clauses
Absence of provisions in contracts allowing access by the Auditor-General Mandatory 155
Exempt contracts
Contracts exempted from publication in AusTender Mandatory 155
Financial statements
Financial statements Mandatory 162-236
Other mandatory information
Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011) Mandatory 150, 248-9
Advertising and market research (section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns
Mandatory 256-61
Ecologically sustainable development and environmental performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999)
Mandatory 253-5
Compliance with the agency’s obligations under the Carer Recognition Act 2010 If applicable, mandatory
Not applicable
Australian Trade Commission Annual Report 2013-14 266
Description Requirement Page
Grant programmes(a) Mandatory 97-100, 108, 110,
115, 118, 124-5
Disability reporting—explicit and transparent reference to agency-l evel information available through other reporting mechanisms
Mandatory 151-2
Information Publication Scheme statement Mandatory 142
Correction of material errors in previous annual report If applicable, mandatory Not applicable
Agency resource statements and resources for outcomes Mandatory 250-2
List of requirements Mandatory 262-6
PBS = Portfolio Budget Statements
PAES = Portfolio Additional Estimates Statements
(a) A ustrade administers the Export Market Development Grants (EMDG) scheme. It is a legislated scheme, not a discretionary grants programme, so a page reference has not been included under this requirement. For information on the EMDG scheme, see pages 85-96.
L ist of figures and tables 267
LIST OF FIGURES AND TABLES Figures
Figure 1: Austrade’s Australian and overseas locations at 30 June 2014 8
Figure 2: Austrade’s outcome and programme framework for 2013-14 1 1
Figure 3: Austrade’s organisational structure at 30 June 2014 1 2
Figure 4: Australian goods exporters, 2012-13 1 9
Figure 5: Australian services exporters, 2012-13 1 9
Figure 6: Sources of international revenue for Australian businesses 2 0
Figure 7: Top five barriers to doing business internationally 2 1
Figure 8: Australia’s top 10 export destinations, 2013 2 2
Figure 9: Australia’s top 10 exports, 2013 2 2
Figure 10: Composition of exports by sector, 2012-13 2 3
Figure 11: Client ratings of Austrade’s service, 2010 to 2014 2 7
Figure 12: Student enrolments by sector, 2013 4 9
Figure 13: Austrade-assisted investment outcomes by source market, 2013-14 6 1
Figure 14: Austrade-assisted investment outcomes by industry sector, 2013-14 6 2
Figure 15: EMDG recipients by annual income, 2012-13 grant year 9 0
Figure 16: EMDG recipients by number of employees, 2012-13 grant year 9 0
Figure 17: EMDG recipients by annual export earnings, 2012-13 grant year 9 1
Figure 18: EMDG recipients by state and territory, 2012-13 grant year 9 1
Figure 19: EMDG recipients by industry, 2012-13 grant year 9 2
Figure 20: Top six countries targeted by EMDG recipients, 2012-13 grant year 9 2
Figure 21: EMDG recipients by expenditure category, 2012-13 grant year 9 3
Figure 22: Tourism’s share of Australia’s GDP, employment and exports, 2012-13 1 19
Figure 23: Austrade’s executive management structure 1 38
Tables
Table 1: Financial summary, 2011-12 to 2014-15 3
Table 2: Summary of results for programme 1.1 deliverables 1 4
Table 3: Summary of results for programme 1.1 key performance indicators 1 6
Table 4: Summary of results for programme 1.2 deliverable 8 5
Table 5: Summary of results for programme 1.2 key performance indicators 8 5
Table 6: Payments to EMDG recipients, 2009-10 to 2013-14 8 8
Table 7: Profile of EMDG applicants and recipients, by grant year, 2008-09 to 2012-13 8 9
Table 8: EMDG recipients by business type, 2012-13 grant year 9 0
Australian Trade Commission Annual Report 2013-14 268
Table 9: EMDG recipients by state and territory, 2011-12 and 2012-13 grant years 9 1
Table 10: Appeals to the Administrative Appeals Tribunal under the EMDG Act in 2013-14 9 4
Table 11: Summary of results for programme1.3 deliverable 9 7
Table 12: Summary of results for programme 1.3 key performance indicators 9 7
Table 13: Summary of results for programme 2.1 deliverables 1 01
Table 14: Summary of results for programme 2.1 key performance indicators 1 02
Table 15: Austrade-managed consulates, at 30 June 2014 1 03
Table 16: Summary of results for programme 3 deliverables 1 06
Table 17: Summary of results for programme 3 key performance indicators 1 11
Table 18: Austrade’s committees and subcommittees in 2013-14 13 7
Table 19: Comcover Benchmarking Survey risk maturity rating for Austrade, 2011 to 2014 1 40
Table 20: Foreign language capabilities at Austrade—priority languages at 30 June 2014 1 46
Table 21: Overseas-engaged employee performance pay by level, 2012-13 performance cycle (paid in 2013-14) 1 48
Table 22: Four-year trend in consultancies, 2010-11 to 2013-14 1 56
Table 23: Austrade’s financial performance, 2010-11 to 2013-14 1 61
Appendixes
Table A1: Ongoing and non-ongoing employees (excluding overseas-engaged employees), full-time and part-time at 30 June 2014 2 38
Table A2: Employees by category of employment at 30 June 2014 2 38
Table A3: Employees by classification, gender and location at 30 June 2014 2 39
Table A4: Employees by location and gender at 30 June 2014 2 40
Table A5: Austrade staff by group or division at 30 June 2014 2 41
Table A6: Senior Executive Service by gender at 30 June 2014 2 41
Table A7: Senior Executive Service by classification and location at 30 June 2014 2 42
Table A8: Senior Executive Service gains and losses during 2013-14 2 42
Table A9: Employees by type of workplace arrangement at 30 June 2014 2 42
Figure B1: Austrade’s national network, including TradeStart, at 30 June 2014 2 43
Table B1: TradeStart locations and partners, 2013-14 2 44
Table D1: Workplace incidents notified under health and safety legislation 2 49
Table E1: Agency resource statement, 2013-14 250
Table E2: Expenses and resources for outcomes, 2013-14 25 1
Table F1: Austrade’s energy consumption, 2009-10 to 2013-14 2 53
Table F2: Energy efficiency performance, 2009-10 to 2013-14 2 55
L ist of figures and tables 269
Table G1: Total advertising and market research expenditure by category, 2013-14 2 56
Table G2: Individual payments of more than $12,400 to media advertising organisations, 2013-14 257
Table G3: Individual payments of more than $12,400 to direct mail organisations, 2013-14 257
Table G4: Individual payments of more than $12,400 to advertising agencies, 2013-14 257
Table G5: Individual payments of more than $12,400 to market research organisations, 2013-14 258
Table H1: List of requirements 2 62
Australian Trade Commission Annual Report 2013-14 270
ABBREVIATIONS AND ACRONYMS ABS A ustralian Bureau of Statistics
ADS A pproved Destination Status
ANAO A ustralian National Audit Office
AOPL A ustrade overseas performance level
APEC A sia-Pacific Economic Cooperation
APL A ustrade performance level
APS A ustralian Public Service
ASEAN A ssociation of Southeast Asian Nations
AS/NZS A ustralian Standard/New Zealand Standard
ATO A ustralian Taxation Office
Austrade A ustralian Trade Commission
CEO C hief Executive Officer
ELICOS E nglish Language Intensive Courses for Overseas Students
EMDG E xport Market Development Grants
EMDG Act Export Market Development Grants Act 1997
FDI f oreign direct investment
FIFA F édération Internationale de Football Association
FOI Act Freedom of Information Act 1982
GCC G ulf Cooperation Council
GDP g ross domestic product
GST g oods and services tax
ICT i nformation and
communications technology
IMF I nternational Monetary Fund
IP i ntellectual property
ISO I nternational Organization for Standardization
METS mi ning equipment, technology and services
MIP M arket Information Package
OECD O rganisation for Economic Co-operation and Development
OEE o verseas-engaged employee
PGPA Act Public Governance, Performance and Accountability Act 2013
RAP R econciliation Action Plan
SES S enior Executive Service
SME s mall to medium-sized enterprise
TAFE t echnical and further education
TIRF T ourism Industry Regional Development Fund
TRA T ourism Research Australia
UNCTAD U nited Nations Conference on Trade and Development
VET v ocational education and training
WHS w ork health and safety
WHS Act Work Health and Safety Act 2011
WIGB W omen in Global Business
Index 271
INDEX
A Aboriginal and Torres Strait Islander peoples, 150-1 Abu Dhabi office, 30 Access Asia, 99 Administrative Appeals Tribunal, 94, 142 Administrative Appeals Tribunal Act 1975, 154 Administrative Arrangements Orders, 80 advertising, 256-7 aerospace global value chains, 24 Africa, 31, 32, 45, 46, 54, 56 Agency Risk Management Plan 2013-14, 139 Agri Australis, 64 agribusiness sector, 26, 38, 48, 60, 61, 64 Agricultural Competitiveness White Paper, 78 Animal Logic, 73 anti-bribery, 132, 139, 140 ANZ Bank, 33, 63 ANZ Global Wealth, 33 APEC Access to Capital forum, 33 Approved Destination Status (ADS) scheme, China, 114,
126-7, 128, 129 APS Statistical Bulletin, 152 APS Values and Employment Principles, 148 Argyle Hotel Group, 36 AS 8001:2003 Fraud Corruption and Control, 140 AS/NZS ISO 31000:2009 Risk Management, 140 As One—Australian Public Service Disability
Employment Strategy, 151 ASEAN-Australia-New Zealand Free Trade Agreement, 82 ASEAN market, 21, 29, 38, 50, 54, 60 ASEAN workforce skills development market initiative,
51, 54
Asia Marketing Fund, 127, 129 Asia-Pacific Economic Cooperation (APEC), 33, 109 Asialink Leaders’ Scholarships, 144 Asian Business Engagement Plan, iii, 97-100, 154
aims and goals, 98 funding available, 98 grants, 97-100 Asian Football Confederation Asian Cup, 32 Asian leisure visitors, 129
Aspen Medical, 75 asset management 153, 155-8 attached agency agreements, 79 Attorney-General’s Department, 135 Audit and Risk Committee, 132, 133, 136, 137 Auditor-General, 141, 155 audits, 140-1 AusFilm, 79 AustCham Singapore, 99 AusTender, 155 Austmine, 100 Austrade Craig Senger Scholarship, 144 Austrade on the Go, 157 Austrade Protected Network, 158 Austrade services to government, 80 Austrade Student Centre website. see Study in
Australia website Australia-China Business Perceptions Survey, 2013, 40 Australia Day Achievement Awards, 149 Australia Unlimited brand, 70-1
MENA 2014 programme, 47, 82 Australia Week in China, iii, 6, 36, 38-9, 56, 66-7, 70, 71, 81-2 Australian Chamber of Commerce and Industry, 72 Australian Council for Private Education and Training, 56 Australian Criminal Code, 132 51st Australian Export Awards, 72-5 Australian Federal Police, 79 Australian Golden Kangaroo, 37 Australian Industry Group, 29, 77, 144 Australian Made Campaign, 72 Australian National Audit Office (ANAO), 136, 141 Australian Network on Disability, 151, 152 Australian Public Service (APS)
employee census and survey, 149 Values and Code of Conduct, 140 Australian Standing Committee on Tourism, 106, 121 Australian Taxation Office (ATO), 31 Australian Technology Network, 52 Australian Tourism Investment Attraction Partnership,
123
Australian Trade Commission Annual Report 2013-14 272
Australian Trade Commission Act 1985, 3, 4, 133, 136, 141 Australian Water Association, 29 Australia’s International Business Survey: 2014 report,
20
Aviation-Aerospace Australia, 29 awards export, 72-5 staff, 149
B Bahrain, 46 Bangladesh, 56 Beryl Wilson Austrade Scholarship for Women in
International Business, 28, 33-4, 143 BGP Global Pty Ltd, 48 Brand Australia. see Australia Unlimited brand Brazil higher education initiative, 52-3 bribery and corruption, 132, 139, 140 briefings. see parliamentary inquiries and briefings Business Advisory Group, 137 Business Development Manager, Accra, 46
C Canada, 6, 59, 63, 66, 81 capability development programmes, 32-3
languages, 146 leadership, 146 Cardno, 73 Centre for Excellence in Rail Training, 30 cherry exports, 48 Chief Economist, Sydney, 23 Chief Executive Officer (CEO) instructions, 139, 140, 155 letter of transmittal, ii report, 5-7 responsibilities, 132, 133 Chief Finance Officer’s report, 160-1 China, 35-40, 62, 66-7, 77, 81, 82, 83, 92, 107, 111, 123 Approved Destination Status (ADS) scheme, 114,
126-7, 128, 129 Austrade’s education teams, 50 Austrade’s support of investment in Australia, 37
Australia Week in China, iii, 6, 38-9, 56, 66-7, 70, 71, 81-2 foreign direct investment, 36, 59 school partnerships, 58 schools initiative, 51-2, 56
China International Education Exhibition Tour, 58 China schools initiative, 51-2, 56 Chinese Visitor Satisfaction Survey report, 128 client service, 27, 246-7 client surveys, 27 codes of conduct, 140 Colmar Brunton, 55 Comcover Benchmarking Survey, 140 Commonwealth Authorities and Companies Act 1997, 4 Commonwealth Bank, 72 Commonwealth Disability Strategy, 152 Commonwealth Fraud Control Guidelines, ii Commonwealth of Independent States (CIS), 47 Commonwealth Procurement Rules, 155 Commonwealth Register of Institutions and Courses for
Overseas Students, 50 ‘Competing internationally—do you need to follow your customer?’ forum, 29 consular and passport services
deliverables, 101 objective, 101 outcomes, 102 Passport and Consular Support Officer, Dubai, 104 passport applications, 104 performance measure, 101-2 voting assistance, 103 Consulate-General, Houston, iv consulates
activities, 103-4 locations, 103 consultancies, 155-6 Consultant Quality Incentive Programme, 86, 93 consultants, 155-6 corporate governance, 132-9 Corporate Governance Forum, 133 corporate planning, 136, 138 Craig Senger Scholarship, 144 Cricket World Cup, 32 cross-cultural capabilities, 146 culture and values, 149-50
D Dairy Australia, 29 data centres, 157 Defence Materiel Organisation, 70 Department of Agriculture, 48, 79 Department of Education, 53, 79 Department of Foreign Affairs and Trade, 2, 3, 34, 38, 70,
76, 77, 78, 79, 80, 104, 132, 134, 135, 153, 154 Department of Immigration and Border Protection, 53, 56, 79 Department of Industry, 24, 29, 78 Department of Infrastructure and Regional Development,
63, 123
Department of Resources, Energy and Tourism, 2, 3, 5, 10, 77, 79, 80, 105, 106, 117, 120, 139, 142, 146, 154, 160
Department of the Prime Minister and Cabinet, 38, 77, 78, 135 Digital Content Working Group, 56 disability employment programme, 151 disability reporting, 152
E ecologically sustainable development, 253-5 economic diplomacy, iv, 5, 6-7, 28, 35, 76 Ecotech, 73 education agents (offshore), 53-4 Education Commissioner and Consul Education,
Shanghai, 51
education industry activities, 56 Austrade’s goals, 49 Brazil higher education initiative, 52-3 China schools initiative, 51-2, 56 Future Unlimited brand, 6, 49, 50, 52, 53, 56, 82 international marketing, 49-50 licensed education institutions, 50 market research and intelligence, 54-5 offshore education agents, 53-4 opportunities identified, 50 stakeholder engagement, 56 statistics, 49 student enrolments in Australia, 50 Study in Australia, 49, 50, 52, 158 value, international market, 49
education market snapshots, 54 Education Visa Consultative Committee, 56 emerging markets, 25, 54 employee recognition programme, 148-9 employees. see staff Engaging with Asia Speaker Series 2013, 33 environmental performance, 253-5 Ethics Committee, 132, 136, 137, 149 Etihad Rail, 30 Europe, 63-5 Executive Group, 133-5 executive management structure, 138 Export Council of Australia, 6, 20, 29, 78 Export Finance and Insurance Corporation (EFIC), 6, 20,
23, 24, 29, 33, 72, 77, 78 Export Market Development Grants Act 1997, 86, 95, 141, 142 Export Market Development Grants Amendment Bill
2014, 86, 93
Export Market Development Grants (EMDG) scheme appeals, 94, 142, 154 applicants, 86 applications, 94 appropriation, 87, 93 communication and promotion, 93-4 deliverables, 85 40th anniversary, iv fraud control, 94 funding, 93 legislative changes, 86 objective, 85 outcomes, 85 payments, 88 performance, 87-8 a dministrative, 94 i ndicators, 85 recipient profiles, 89-93 risk management, 94-5 Senior Grants Auditor, Sydney, 87 Export Market Development Grants (Extended
Lodgement and Consultant Quality Incentive) Determination 2012, 86
Index 273
Australian Trade Commission Annual Report 2013-14 274
exporters Austrade assistance, 25-6 awards, 72-5 statistics, 18, 19
exports, statistics, 18-19, 21-3 external scrutiny, 141-2
F Fair Work Commission, 147 FAPESP (Sao Paulo Research Foundation), 52 Ferra Engineering, 24 Ferrero Group, 64 Financial Management and Accountability Act 1997, 3,
4, 132, 140, 141 financial performance, 3, 160-1 financial resources, 250-2 financial statements, 162-236 financial summary, inside front cover, 3 foreign direct investment (FDI)
Austrade’s role, 60 China, 36, 59, 66-7 Europe, 63-5 investment network, 62-7 inward investment outcomes, 62, 63, 67 Japan, 59, 65-6 priority setting, 61 promotion of inward investment, 61 senior investment specialists, 5, 61, 68-9, 78-9 sources, 61 statistics, 59 stock of, 59, 63 tourism, 66-7 United Kingdom, 59 United States, 59, 62 foreign government delegations, 84 foreign languages capability, 146 France, 65, 83, 119 fraud control, 140
EMDG scheme, 94 freedom of information, 142 Freedom of Information Act 1982, 142, 155 Fullshare, 37, 67 Future Unlimited brand, 6, 47, 49, 50, 51, 52, 53, 56, 57
competition, 6, 50, 56, 57
G G’day USA, 62, 83 General Manager, Marketing Online and Business Practice, Sydney, 72
Germany, 61, 63, 64, 83, 92, 119 Global News, 139 global trade, 18 global value chains, 24 goods exports, 18-19 governance, 132-9 grant programmes, 97-100, 108, 110, 115, 118, 124-5 Green Line Mining forum, 45 Gulf Cooperation Council markets, 46-7
H Highlights 2013-14, iii history, 4 Hong Kong, 6, 21, 66, 83, 92 The Hub, 139, 156, 158 human resources management, 142-52
I ICT strategy, 167 Income Tax Assessment Act 1936, 15, 16, 31 independent audits, 141 India, 20, 30, 32, 55, 56, 57, 61, 62, 129 Indigenous Australian Government Development
Programme, 150 Indigenous Cadetship Support Programme, 151 Indonesia, 20, 43, 51, 56, 83 Information Publication Scheme statement, 142 information systems
business systems, 156 Chief Information Officer, Canberra, 157 data centres, 157 equipment replacement, 158 mobility support, 157 security, 158 system monitoring, 158 infrastructure sector, 64. see also tourism—infrastructure Inquiry into the Development of Northern Australia, 79 internal audit, 140-1 internal controls, 140
international business community barriers to business, 20-1 research, 20
International Monetary Fund (IMF), 18, 44 international students, 49, 57 investment. see foreign direct investment Investment Adviser, Sydney, 68 investment development. see trade, investment and
education promotion Investor Update, 70 inward investment. see foreign direct investment IT. see information systems Italy, 65
J Japan, 6, 21, 32, 50, 56, 59, 60, 65-6, 81, 111, 135 oyster industry, 41 Japan and Korea Visitor Satisfaction Survey, 129 Japan-Australia Economic Partnership Agreement, 66,
76
Japan External Trade Organization, 76 Japan global human capital initiative, 52 JKTech, 45 Joint Select Committee on Northern Australia, 80 Joint Standing Committee on Foreign Affairs, Defence
and Trade inquiry, 80 judicial decisions, 142
K Kambrya College, 58 Kangaroo Liaoning Business Chain Co. Ltd, 37 KCC Real Estate Development Company, 37, 67 Korea. see Republic of Korea Korea-Australia Free Trade Agreement, 78, 81 Korea Trade-Investment Promotion Agency, 76 Kuwait, 46, 47, 82
L language capabilities, 146 Latin America, 29, 45, 65 leadership capability, 146 legal services, 154 legislation, 3, 141
letter to Minister, ii locations—Austrade’s, 8-9, 243, inside back cover
M Macquarie Capital, 63 Malaysia, 51, 56, 59, 111, 119, 123, 129 management committees, 136, 137 management development, 146 Manager, Investment and Regulatory Reform, Canberra,
120
Manager, Tourism Major Project Facilitation Service, Canberra, 120 manufacturing sector, 24, 70, 91 Market Information Package (MIP), 54, 58
survey, 55 market research, 256, 258-9 Match Australia—International Sports Business programme, 32 McKinsey & Company, 4, 135 Meat & Livestock Australia, 29, 77, 144 media and communications, 71 mentoring, 146 Mid-Year Economic and Fiscal Outlook 2013-14, 87 Middle East, 31, 46, 47, 75, 80, 82, 123 mining and resources sector, 26, 34, 44, 51, 59, 65 mining equipment, technology and services (METS), 44,
45, 70, 100
Mining Indaba 2014, 45 Minister for Trade and Investment, 3, 5, 6, 33, 36, 38, 42, 50, 57, 60, 71, 72, 78, 80, 81, 82, 83, 99, 132, 133, 136, 143
ministerial activities in Australia, 79, 80 overseas visits, 38, 81-3
ministerial directions, 133 ministerial responsibilities, 3 MIP Weekly, 54 Monash University, 73 Mongolia, 34, 56, 84 Morocco, 47 Mukti Botanicals, 96 Myanmar, 48, 51, 54, 83, 84
Index 275
Australian Trade Commission Annual Report 2013-14 276
N National Disability Strategy 2010-2020, 152 National Investment Advisory Board, 29, 60, 76, 79 National Landscapes, 125 National Tourism Accreditation Framework (T-QUAL),
107, 113, 115, 118, 124, 125-6 National Trade Development Working Group, 76, 79 network—Austrade’s, 3, 8-9, 34 New South Wales Legislative Council inquiry into
tourism in local communities, 79 Nigeria, 54 Nishi-Nippon City Bank, 52 North America, 62-3 Northern Australia White Paper taskforce, 76, 78
O occupational health and safety. see work health and safety Office of Legal Services Coordination, 154 Oman, 46 Opengear, 95 Organisation for Economic Co-operation and
Development (OECD), 24, 132 organisational design, 142 organisational structure, 12 Otraco, 73 Outcome 1, 2, 10, 11
Programme 1.1: Trade, education and investment promotion o bjective and deliverables, 14-16 pe rformance indicators, 16-17 Programme 1.2: Trade development schemes—Export
Market Development Grants o bjective and deliverables, 85 p erformance indicators, 85 Programme 1.3: Trade development schemes—Asian
Business Engagement Plan o bjective and deliverables, 97 p erformance indicators, 97 Outcome 2, 2, 10, 11
Programme 2.1: Consular and passport services o bjective and deliverables, 101 p erformance indicators, 101-2
outlook 2014-15, iv, 160 overseas assignments, 144 Overseas-Engaged Employees’ Scholarships, 143
P Pakistan, 32, 56, 84 parliamentary inquiries and briefings, 79-80 Passport and Consular Support Officer, Dubai, 104 passport services, 104 performance bonus payments, 148 performance framework, 138 performance reporting, inside front cover, 2, 10, 14-130 Peru, 44-5 Philippines, 42-3, 51, 82-3 Philippines School of Technology, 43 Portfolio Budget Statements 2013-14, 2, 10, 14, 85, 97,
101, 105, 106, 138 PricewaterhouseCoopers, 141 privacy, 142 Privacy Act 1988, 142 procurement, 155 Productivity Commission, 61, 122, 123 Programme 3: Tourism-related initiatives and
management, 105 deliverables and performance indicators, 105, 106-18 objective, 105 Protective Security Policy Framework, 154 Public Governance, Performance and Accountability
Act 2013, 133 public-private partnerships, 65, 82 Public Service Act 1999, 3, 132, 141 publications—tourism research, 117, 127 purchasing, 155
Q Qatar, 46, 109, 123 Queensland University of Technology, 30
R Rail Skills Australasia, 30 Reconciliation Action Plan (RAP), 151, 152 Relationship Management System, 156, 158 reporting framework, 10 Republic of Korea, 6, 21, 32, 56, 57, 81, 111 research, 20 responsibilities, 2 review of Austrade, 27 RightShip, 73, 74 risk management, 139-41 RÃDE Microphones, 73 role—Austrade’s, inside front cover, 2
S Saudi Arabia, 6, 30, 46, 82 scholarships, 143-4, 148. see also Beryl Wilson Austrade Scholarship for Women in
International Business SEAPA Pty Ltd, 41 secondments programme, 77, 144 security, 154, 158 Security Advisory Group, 137 Senior Executive Service (SES), 146-7, 241, 242 Senior Grants Auditor, EMDG scheme, Sydney, 87 senior investment specialists, 5, 61, 68-9, 78-9 Senior Officials Trade and Investment Group, 29, 60, 76,
79
service charter, 246-7 service exports, 19 service improvement study, 27 short-term overseas assignments, 144 Singapore, 51, 56, 59, 60, 92, 99, 111, 119, 143 social media, 17, 50, 52, 70, 71, 111, 256-7 South Africa, 32, 45, 55 South Australian Department of Manufacturing,
Innovation, Trade, Resources and Energy, 79, 144 Spain, 65 Sri Lanka, 32, 56
staff awards, 149 communication, 139 deployments, 77, 144 enterprise agreements, 147 Indigenous, 151 management development, 146 numbers, inside front cover, 3, 142-3 overseas-engaged, 77, 143, 144, 147, 148, 149 overview, inside front cover, 3, 238-42 people with a disability, 151-2 performance a greements, 138 m anaging, 147-8 recognition, 148-9 resources, 251 surveys, 147, 149 training and development, 143-7 turnover, 3, 142 wellbeing, 151 workplace diversity, 150 stakeholders, 29, 56, 60, 117 standards of service, 27 state and territory directors, 76-7 State Marketing Forum, 56 State of the Service report, 152 Strategic Tourism Investment Grants, 108, 124, 125 student visas, 53 Study in Australia website, 49, 50, 52, 158 submissions and briefs, 80 surveys. see also tourism
client, 27 staff, 147, 149 SWA Water Australia, 73 Switzerland, 59, 83
T T-QUAL Accreditation, 107, 113, 115, 118, 124, 125-6 T-QUAL Grants Programme, 108, 115, 124, 125 Taiwan, 21, 56 talent management, 147 Tasmanian Quality Meats, 73 ‘team Australia’ approach, 79 Telkom Indonesia, 43 Telstra, 43
Index 277
Australian Trade Commission Annual Report 2013-14 278
Thailand, 30, 51 Torres Strait Islander peoples. see Aboriginal and Torres Strait Islander peoples tourism. see also T-QUAL Accreditation; T-QUAL
Grants Programme Austrade’s role, 119 economic analysis reports, 129-30 employment plans, 122 expenditure by tourists, 120 forecasts, 129 infrastructure, 66, 67 investment in, 66-7, 120 regional reports, 130 reports, 129-30 research, 116, 127 stakeholder satisfaction, 117 surveys, 117, 128-9, 130 T-QUAL grants, 115 tourism action plan 2015-20, iv visitor statistics, 119-20 visitor survey reports, 117, 128-9, 130 Tourism 2020 strategy, iv, 2, 77, 119, 121-4
performance indicators, 113 Tourism Australia, 38, 39, 66, 67, 80, 83, 123, 124, 125 Tourism Industry Regional Development Fund (TIRF) grants programme, 110, 118, 124 Tourism Investment Monitor, 110, 112, 127, 129 Tourism Major Project Facilitation service, 123 Tourism Research Australia (TRA), 110, 119, 127 trade, investment and education promotion. see also
individual countries deliverables, 14-16 developing markets for business, 18-48 objective, 14 outcomes, 16-17 performance indicators, 16-17 research, 21-2 whole-of-government policy, 76-84 Trade and Investment Ministers Meeting, 60, 79 Trade Commissioner Service, 6, 28
trade commissioners Beijing, China, 40 celebrating 80 years, 28 development programme, 145 Milan, 68 New Delhi, 35, 69 New York, 69 Peru, 44 Russia, 47
Trade Commissioners Act 1933, 28 trade development schemes. see Export Market Development Grants (EMDG) scheme; Asian Business Engagement Plan
Trade Manager, Services, 38 TradeStart locations, 154, 243-5 partners, 244-5
programme, 31 Transparency International Australia, 132 2020 Tourism Industry Potential, 112, 121, 127
U ‘Understanding Talent Recruitment in China’ tour, 36 United Arab Emirates, 6, 30, 32, 46, 56, 75, 82, 104 United Kingdom, 20, 59, 63, 66, 92, 119 United Nations Conference on Trade and Development
(UNCTAD), 24, 59 United States of America, 6, 18, 20, 21, 59, 61, 62-3, 81, 83, 92, 119 University of Melbourne, 32 University of New South Wales, 52, 57 University of Sydney, iii, 6, 20, 29, 78 University of Western Australia, 33 Unlocking India’s potential: commercially successful
vocational education and training, 55
Index 279
V values, 140 Victorian Parliament Rural and Regional Joint Investigatory Committee inquiry, 80
Vietnam, 51, 56, 83 visits, foreign government representatives, 84 voluntary redundancy programme, 143
W Walnuts Australia, 73 Water Australia, 29 Waterex, 44 Wearx, 44 web accessibility, 158 Web Content Accessibility Guidelines, 158 website, 70, 93, 158. see also Study in Australia website West Africa, 54, 56 Western Europe, 62 whole-of-government policy, 76-84
initiatives, 78 service level agreements, 79 state and territory directors, 76-7 state and territory governments, 76-7 Why Australia: benchmark report 2014, 63 WIGB skills and capability development workshops,
32-3
WIGB-University of Melbourne study, 32 Willow Creek Winery, 67 Wilson, Beryl, 28, 33, 143 ‘Win your Future Unlimited’ competition, 6, 50, 56, 57 Wine Australia, 29 Winning Investment for Australia programme, 60 Women and the Economy forum, 33 Women in Global Business (WIGB), 32-3 work environment, 150 work health and safety, 248-9 Work Health and Safety Act 2011, 150 Work Health and Safety Management System, 150 workforce design, 142 workforce skills development mission to ASEAN, 56 Workplace Diversity Action Plan 2014-2017, 150 Workplace Relations Committee, 137, 150 World Bank, 31
Z ZhuoZhou Intense Solar, 36
Australian Trade Commission Annual Report 2013-14 280
AUDITORS AND ACKNOWLEDGEMENTS Internal auditor
PricewaterhouseCoopers 28 Sydney Avenue Forrest ACT 2603
External auditor
Australian National Audit Office Centenary House 19 National Circuit Barton ACT 2600
Creative Commons
With the exception of the Commonwealth Coat of Arms and where otherwise noted (including photographs protected by copyright), this report is licensed under a Creative Commons Attribution 3.0 Australia licence, http://creativecommons.org/licenses/by/3.0/au/.
The report should be attributed as the Australian Trade Commission Annual Report 2013-14.
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ISSN: 1030-5904 (print)
ISSN: 2202-9354 (online)
This report is available at www.austrade.gov.au/annualreport.
All amounts are in Australian dollars unless otherwise specified.
Production
Austrade annual report team: Amanda Hughes and Tracey Hoffmann Thank you to all contributors.
Editing and indexing: Wilton Hanford Hanover
Design and production: L+L Design
Contact
Enquiries about the annual report should be directed to:
Head of Strategy, Governance and Media Austrade GPO Box 5301 Sydney NSW 2001 Phone: 02 9392 2000 Fax: 02 9392 2777
www.austrade.gov.au
AUSTRADE LOCATIONS Australia East Asian
Growth Markets
Established Markets
Growth and Emerging Markets
Adelaide Brisbane Canberra Darwin Hobart Melbourne Newcastle Perth Sydney Townsville Wollongong
Bandar Seri Begawan Bangkok Beijing Chengdu Guangzhou Hangzhou Hanoi Ho Chi Minh City Hong Kong Jakarta Kaohsiung Kuala Lumpur Kunming Manila Nanjing Qingdao Shanghai Shenyang Shenzhen Singapore Taipei Ulaanbaatar Wuhan Yangon
Auckland Chicago Frankfurt f*ckuoka Istanbul London Madrid Milan New York Osaka Paris Port Moresby Prague San Francisco Sapporo Seoul Stockholm Suva Tel Aviv Tokyo Toronto Vancouver Warsaw Washington DC
Abu Dhabi Accra Ahmedabad Bangalore Bogota Buenos Aires Chandigarh Chennai Colombo Dhaka Dubai Hyderabad Islamabad Jaipur Jeddah Johannesburg Karachi Kochi Kolkata Kuwait Lahore Lima Mexico City Moscow Mumbai Nairobi New Delhi Port Louis Pune Rabat Riyadh Santiago Sao Paulo Vladivostok
Australian Trade Commission Annual Report 2013-14 282
austrade.gov.au
