Department of Infrastructure and Regional Development

Section 2: Outcomes and planned performance

2.2 Budgeted expenses and performance for Outcome 2

Outcome 2: An efficient, sustainable, competitive, safe and secure transport system for all transport users through regulation, financial assistance and safety investigations.

Linked programs

The Department of Human Services
Programs
  • Program 1.1: Services to the Community—Social Security and Welfare.
Contribution to Outcome 2 made by linked programs

The above linkage relates to payments made by the Department of Human Services on behalf of the Department for the Bass Strait Passenger Vehicle Equalisation Scheme and the Tasmanian Freight Equalisation Scheme.

Budgeted expenses for Outcome 2

The table below shows how much the Department intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.

Table 2.2.1: Budgeted expenses for Outcome 2

Table 2.2.2: Program components for Outcome 2

Table 2.2.3: Performance criteria for Outcome 2

Table 2.2.3 below details the performance criteria for each program associated with Outcome 2. It also summarises how each program is delivered and where 2016–17 Budget measures have created new programs or materially changed existing programs.

Outcome 2—An efficient, sustainable, competitive, safe and secure transport system for all transport users through regulation, financial assistance and safety investigations.
Program 2.1—The transport security program contributes to Outcome 2 by ensuring a viable and sustainable transport security system in Australia through regulation designed collaboratively with industry and government entities. The aim is to ensure flexible and proportionate regulation that delivers measurable benefits. In doing so, we ensure that the transport security regulatory model operates efficiently and effectively.
Delivery During 2016–17 and the forward years, the Department will:
  • support industry and the community by continuously reviewing aviation transport, maritime transport, and offshore facility security regulatory regimes;
  • work with industry to maintain a strong, comprehensive approach to transport and offshore facility security;
  • work with international partners to shape the transport security environment and build capacity overseas to mitigate security risks to Australia; and
  • undertake inquiries through the Inspector of Transport Security as directed by the Minister.
Performance information
YearPerformance criteriaTargets
2015–16 Action is taken by the Government to mitigate against new or emerging risks, where they are identified.

Expected achievement:

Engagement continues with Australian Government counterparts informing industry stakeholders about threat information relevant to their operations, and improved information products about threat and risk will begin to be delivered.

Contingency planning for a changed threat is well advanced with major airports and airlines, and similar planning has commenced for regional airports and airlines.

The regulatory framework continues to be monitored and maintained to ensure it operates in a robust manner, with regulatory amendments to strengthen the security of air cargo exports to the United States is introduced into Parliament, as well as to strengthen airside screening arrangements.  Legislation is amended to extend security identification schemes to include serious and organised crime.

New and emerging risks continue to be addressed through risk led compliance activities, including Last Port of Call assessments; twenty will be completed.

Regulated industry participants remain well informed through regular briefings that are held in cooperation with the Australian Security Intelligence Organisation.
As per the 2015–16 PB Statements.
  Collaboration with industry ensures that policy and regulatory frameworks are efficient and effective.

Expected achievement:

Ongoing collaboration through regular industry forums has been maintained to focus on the improvement and co-design of policy and regulatory frameworks, and responding to emerging issues.
 
  International and domestic engagement influences and shapes policy and future developments.

Expected achievement:

Participation in key international forums to influence international policy settings continues. Key forums are the Asia-Pacific Economic Cooperation Transport Working Group, International Civil Aviation Organization Aviation Security Panel and QUAD—(Australia, Canada, United States and the European Commission).

The Department will participate in Asia-Pacific Economic Cooperation Transportation Working Group meetings in April 2016 to facilitate transport supply chain connectivity, and influence improvements to transport safety and security in the Asia Pacific region.

A bilateral agreement to streamline baggage screening processes with Dubai and the United Kingdom is anticipated to be finalised.

The Last Port of Call program has been reviewed and it is anticipated that implementation of recommendations will be underway.
 
  Communication with regulated entities is clear, targeted and effective.

Expected achievement:

Focus continues to be placed on ensuring information is useful for regulated industry participants and revised internet content has been developed about transport security.

The guidance provided to regulated entities to assist in meeting regulatory requirements has been updated.

Collaboration on the review and development of key policy matters was undertaken through targeted working groups on airside screening, cargo and screening innovation.

Entry and exit interviews with regulated entities were undertaken to assist regulatory compliance.
 
  Compliance and monitoring approaches are streamlined and coordinated.

Expected achievement:

Compliance and monitoring approaches continue to be streamlined and coordinated, with a reform program underway to strengthen regulatory operations. It is anticipated a new operating model will be designed and its implementation underway.

The centralisation of operational policy advice to improve national consistency will have begun.
 
2016–17 Regulatory settings are reviewed to ensure they are efficient and effective. Amend regulations to meet piece level screening security requirements for air cargo exported to the United States and commence implementation.

Amend regulations to strengthen the security of airside screening arrangements commence implementation.

Amend regulations to deregulate port service providers and ships undertaking interstate voyages.

Make the known consignor scheme operational by the end of 2016.

Implement new regulatory arrangements for regulated air cargo agents and accredited air cargo agents.

Amend regulations to improve the design and physical security of the Aviation Security Identification Card and Maritime Security Identification Card.

Amend regulations to streamline transport security programs, improve signage requirements and the application of special event zones.

Hold meetings of the Aviation Security Advisory Forum, the Regional Industry Consultative Forum, the Maritime Industry Security Consultative Forum and the Oil and Gas Security Forum to consult with industry participants.
  Industry is well informed about their regulatory obligations and contemporary security threats and risks. Issue new products on threat and risk to inform regulated industry participant's management of security risks.

Undertake awareness raising activities to ensure regulated entities understand relevant reforms to regulatory operations.

Ensure guidance about industry's regulatory obligations is up to date, clear and easily accessible.

Implement regulatory amendments for special event zones, maps and sign requirements.

Regularly brief regulated industry participants with information about current security threats.

Ensure contingency planning for major airports and airlines is completed and well progressed with regional airports and airlines.

Initiate entry and exit interviews with regulated entities to address areas of non-compliance.
  International engagement influences and shapes global policy settings. Engage through QUAD and the International Civil Aviation Organization Aviation Security Panel to influence changes to Annex 17 on cyber and landside security standards.

Complete key bilateral agreements to streamline security screening.

Participate in Asia-Pacific Economic Cooperation meetings and help to drive progress on its transport security and safety agenda.

Implement the review of the Last Port of Call to improve the program's effectiveness.

Implement the review of the capacity building program to improve its effectiveness.
  Compliance activity is risk based and well informed. 95 per cent of ‘high risk’ cases are subjected to compliance activity.
  New Compliance Operating Model implemented to improve efficiency, effectiveness and national consistency. Efficiency, effectiveness and national consistency of new Compliance Operating Model is improved as measured by industry feedback.

Compliance data effectively informs the department's compliance approach.
2017–18 and beyond Regulatory settings are reviewed to ensure they are efficient and effective. Trial and refine if necessary, an operational model for risk based screening at selected major airports.

Amend legislation to implement a more risk based and proportionate approach to aviation security regulation.

Ensure the completion of contingency planning for regional airports and airlines.
  Industry is well informed about their regulatory obligations and contemporary security threats and risks. Issue products on threat and risk to inform the management of security risks by regulated industry participants.

Regularly brief regulated industry participants to inform them about current security threats.

Undertake awareness raising activities to ensure regulated entities understand relevant reforms to regulatory operations.

Ensure guidance about industry's regulatory obligations is up to date, clear and easily accessible.
  International engagement influences and shapes global policy settings. Engage through the QUAD and the International Civil Aviation Organization Aviation Security Panel to influence changes to Annex 17 on cyber and landside security standards.

Complete key bilateral agreements to streamline security screening.

Contribute to efforts to improve the safety, security, and efficiency of transport through the Asia-Pacific Economic Cooperation Transportation Working Group.
  Compliance activity is risk based and well informed. Ensure scheduled Last Port of Call assessments are completed and action is taken where risks are assessed as unacceptably high.

Use the data it collects from compliance activities to effectively inform its compliance approach.
  Air cargo exports meet inbound regulatory requirements of Australia's major trading partners, particularly the United States. By 1 July 2017, all United States-bound air cargo will have undergone to piece-level examination or will have originated from a known consignor.
Purposes Foster an efficient, sustainable, competitive, safe and secure transport system.
Material changes to Program 2.1 resulting from the following measures:
  • There are no new measures with a material impact on the performance information for Program 2.1.
Program 2.2—The surface transport program contributes to Outcome 2 through activities which seek to improve the performance of the surface transport sector for the benefit of all Australians.
Delivery During 2016–17 and the forward years, the Department will:
  • work with the Australian Maritime Safety Authority (AMSA) as the national maritime safety regulator to streamline the delivery of services to the commercial vessel sector and progress full implementation of national regulator arrangements;
  • progress and monitor the impact on Tasmanian businesses of the implementation of the Australian Government's response to the Productivity Commission inquiry report on Tasmanian shipping and freight, and in particular the expansion of the Tasmanian Freight Equalisation Scheme from 1 January 2016;
  • progress reform of coastal shipping;
  • work with state, territory and local government and industry to progress heavy vehicle road reform;
  • work with state, territory and local government to develop evidence and options on longer term land transport market reform of charging and investment arrangements; and
  • promote integrated surface transport (road, rail) reforms supporting the operation of single national markets and building on effective relationships with key stakeholders, including other governments, unions, industry and regulators.
Performance information
YearPerformance criteriaTargets
2015–16 Australian surface transport networks are safer and more efficient with Commonwealth regulation that is fit for purpose and proportionate to the risk being managed.

Expected achievement:

The streamlining of service delivery to the domestic commercial vessel sector and progress towards the full implementation of national regulator arrangements by 1 July 2017 is being worked towards with AMSA. Achievements will also be to: implement the Australian Government's response to the Productivity Commission inquiry report on Tasmanian shipping and freight; progressing the reform of coastal shipping; and promoting integrated road and rail reforms to support the operation of single national markets and building on effective relationships with key stakeholders.
As per the 2015–16 PB Statements.
  Surface transport regulatory systems are subject to a focus on continuous improvement.

Expected achievement:

Focus has continued to be given to improvements to the surface transport regulatory systems. The first editions of the key freight routes heavy vehicle asset registers and expenditure plans, along with an access negotiating framework were published on the Transport and Infrastructure Council on 29 January 2016, representing substantial progress against phase one of the reform road map agreed by transport ministers in May 2015.

A review is expected to be completed of the costs, benefits and potential next steps of options to reform road transport investment and charging arrangements including light vehicles.
 
  Communication with regulated entities, including those subject to regulatory changes, is open, transparent and appropriately targeted to support regulated entities in meeting their obligations.

Expected achievement:

The national heavy vehicle and rail safety regulators will submit corporate plans to transport ministers in May 2016 for approval, and are expected to publish these on their respective websites soon after. In addition, each regulator now has fit for purpose stakeholder engagement arrangement processes in place, allowing for targeted communication and effective engagement.

Ongoing consultation by AMSA with regulated entities are guided by principles set by the Australian Government's Office of Best Practice Regulation. AMSA's 2015–16 Annual Report will articulate the wide range of communications with regulated entities regarding standards and policy developments, including details of the consultative bodies run by AMSA.
 
2016–17 Australian surface transport networks are safer and more efficient with Commonwealth regulation that is fit for purpose and proportionate to the risk being managed.

Surface transport regulatory systems are subject to a focus on continuous improvement.

Communication with regulated entities, including those subject to regulatory changes, is open, transparent and appropriately targeted to support regulated entities in meeting their obligations.

Lead work with the states and territories to progress heavy vehicle road reform in line with the road map agreed by the Transport and Infrastructure Council in May 2015.
Drive regulatory improvement and reduced costs for the heavy vehicle, maritime and rail sectors utilising the established and effective national regulators.

Consider options for building on the infrastructure of the national regulators to consolidate broader funds to improve benefits to industry and increase productivity and safety outcomes.

Sustain momentum on national transport reform, with jurisdictions working together to build on initial measures and implement longer-term reforms that improve pricing, access, safety and productivity.

Balance investment and productivity outcomes between freight modes to ensure the efficiency and effectiveness of road, rail and shipping.

Publish the second editions of the heavy vehicle asset registers and expenditure plans, which are improved based on feedback from industry and state and territory governments.

Lead the states and territories in delivering advice to the Council of Australian Governments on:
  • accelerating heavy vehicle road reform;
  • implementing independent price regulation for heavy vehicle charges by 2017–18; and
  • investigating the high level benefits and costs of user charging for all vehicles.
2017–18 and beyond Australian surface transport networks are safer and more efficient with Commonwealth regulation that is fit for purpose and proportionate to the risk being managed.

Surface transport regulatory systems are subject to a focus on continuous improvement.

Communication with regulated entities, including those subject to regulatory changes, is open, transparent and appropriately targeted to support regulated entities in meeting their obligations.

Lead work with states and territories to progress heavy vehicle reform.
Drive regulatory improvement and reduced costs for the heavy vehicle, maritime and rail sectors utilising the established and effective national regulators.

Consider options for building on the infrastructure of the national regulators to consolidate broader funds to improve benefits to industry and increase productivity and safety outcomes.

Sustain momentum on national transport reform, with jurisdictions working together to build on initial measures and implement longer-term reforms that improve pricing, access, safety and productivity.

Balance investment and productivity outcomes between freight modes to ensure the efficiency and effectiveness of road, rail and shipping.

Subject to agreement by the Council of Australian Governments, lead work with states, territories, local government and stakeholders on:
  • implementing phase two of heavy vehicle road reform, including adoption of a forward looking cost base for heavy vehicle charges and independent price regulation of charges; and
  • progressing research and policy development work on land transport market reform.
Purposes Foster an efficient, sustainable, competitive, safe and secure transport system.
Material changes to Program 2.2 resulting from the following measures:
  • There are no new measures with a material impact on the performance information for Program 2.2.
Program 2.3—The road safety program contributes to Outcome 2 by developing a safer road transport system by working to make vehicles and occupants safer, and drivers more informed.
Delivery During 2016–17 and the forward years, the Department will:
  • implement reforms to the Motor Vehicle Standards Act 1989 in consultation with vehicle manufacturers, registered automotive workshops, state and territory vehicle registration authorities and the broader automotive sector;
  • ensure vehicle standards deliver both safety and environmental outcomes and are consistent with international approaches; and
  • coordinate ongoing delivery arrangements for the National Road Safety Strategy 2011–20 and National Road Safety Action Plan 2015–17, including road safety data collection and progress reporting.
Performance information
YearPerformance criteriaTargets
2015–16 Australia's road and vehicle safety systems achieve safety, emissions, anti-theft and other environmental standards.

Expected achievement:

Environmental standards continue to be achieved, through: applying United Nations Regulations; aligning Australian Design Rules (ADRs) with United Nations Regulations; amending ADRs to remove Australian specific content; and implementing Poleside Impact and other ADRs.
As per the 2015–16 PB Statements.
  Australia's road and vehicle safety systems are more efficient, with Commonwealth regulation that encourages efficiency and where compliance and monitoring is increasingly risk based and streamlined.

Expected achievement:

The efficiency of road and vehicle safety systems continues to be encouraged, in particular with the deployment of the Vehicle Import System being progressed.

The legislative review of the Motor Vehicle Standards Act 1989 has been completed and the Australian Government announced its agreed package of reforms on 10 February 2016. Implementation of this decision has commenced.
 
  Australia's road and vehicle safety systems are safer with Commonwealth regulation and regulatory policy fit for purpose and proportionate to the risks being managed.

Expected achievement:

Commonwealth regulation and regulatory policy which is fit for purpose and proportionate will be achieved including through the development of a new regulatory framework, incorporating risk and compliance strategies for the national vehicle safety regulator.
 
  Statistical analysis and information published is accurate and robust and supports the continuous improvement of regulatory frameworks.

Expected achievement:

Statistical analysis and information published remains accurate and robust; the new Green Vehicle Guide website has been deployed.
 
  Communication with regulated entities, including those subject to regulatory changes, is open, transparent and appropriately targeted to support regulated entities in meeting their obligations.

Expected achievement:

Regular stakeholder consultation continues to be open, transparent and targeted through established stakeholder forums,consultation relating to the development of new ADRs, an annual stakeholder survey and informal feedback, as well as the review of the Motor Vehicle Standards Act 1989.
 
  Approvals and licenses under the Commonwealth road and vehicle safety regulatory frameworks are issued in a timeframe that meets legislative or other requirements.

Expected achievement:

Timely decisions are made on requests for approvals and licenses: 95 per cent of applications for new type approvals are decided within 25 working days; 95 per cent of applications for import approval are decided within 20 working days; and 95 per cent of applications for used import plate approval are decided within 5 working days of the submission of a vehicle inspection certificate.
 
2016–17 Australia's road and vehicle safety systems achieve safety, emissions, anti-theft and other environmental standards.

Australia's road and vehicle safety systems are more efficient, with Commonwealth regulation that encourages efficiency and where compliance and monitoring is increasingly risk based and streamlined.

Australia's road and vehicle safety systems are safer with Commonwealth regulation and regulatory policy fit for purpose and proportionate to the risks being managed.

Statistical analysis and information published is accurate and robust and supports the continuous improvement of regulatory frameworks.

Communication with regulated entities, including those subject to regulatory changes, is open, transparent and appropriately targeted to support regulated entities in meeting their obligations.
Progress and implement reforms to the Motor Vehicle Standards Act 1989 where necessary.

Participate in the development of international vehicle standards; assess standards for implementation in Australia consistent with international timetables.

Conduct audits, inspections, information seminars and other compliance activities effectively, with identified issues addressed satisfactorily.

Publish and regularly review compliance and enforcement policy to ensure it reflects risk-based, proportionate and voluntary compliance principles.

Ensure changes to legislation, policies or practices are appropriately canvassed through established stakeholder forums.
  Approvals and licenses under the Commonwealth road and vehicle safety regulatory frameworks are issued in a timeframe that meets legislative or other requirements. 95 per cent of applications for new type approvals are decided on within 32 working days.

95 per cent of applications for import approvals are decided on within 20 working days.

95 per cent of applications for used import plate approvals are decided on within 5 working days of the submission of a vehicle inspection certificate.
2017–18 and beyond As per 2016–17. As per 2016–17.
Purposes Foster an efficient, sustainable, competitive, safe and secure transport system.
Material changes to Program 2.3 resulting from the following measures:
  • There are no new measures with a material impact on the performance information for Program 2.3.
Program 2.4—The air transport program contributes to Outcome 2 by ensuring the aviation industry operates within a clear and robust safety regulatory environment and Australian businesses and consumers have access to competitive international and domestic air services, along with maintaining aviation safety.
Delivery During 2016–17 and the forward years, the Department will:
  • provide policy advice to the Australian Government on current and emerging aviation policy issues;
  • implement the Australian Government's aviation policy initiatives;
  • continue to administer regulatory provisions effectively and to promote best practice regulation through progressive improvements in guidance materials, regulatory tools and processes;
  • consult extensively with state, territory and local governments and industry and, where appropriate, with foreign governments and international organisations; and
  • implement the Australian Government's decision that the location for western Sydney's new airport will be the Commonwealth-owned site at Badgerys Creek.
Performance information
YearPerformance criteriaTargets
2015–16 Policy advice is influential in the Australian Government's response to current and emerging international and domestic aviation industry issues.

Expected achievement:

Advice is provided to the Minister on a range of policy and implementation issues in aviation, in addition to advice on whole-of-government policy positions.
As per the 2015–16 PB Statements.
  Aviation regulation, policies and administered items support ongoing investment in safe, efficient and environmentally responsible aviation infrastructure and operations by entities and industry.

Expected achievement:

Policy and regulatory decisions are supporting investment across the aviation industry. Airservices Australia, our major civil air traffic service provider, plans to invest over $1.0 billion in infrastructure and services over the next five years.

Australia's major airports have continued investment, including in major new runway projects at Brisbane, Melbourne and Perth.

Our major airlines also continue to invest in modern aircraft equipped with satellite-based technology.
 
  The approach to infrastructure planning, investment and development in western Sydney is integrated through consultation and coordination with key stakeholders.

Expected achievement:

Key stakeholders are being consulted throughout the development of plans for western Sydney's infrastructure through the public exhibition of draft plans, steering committees, targeted briefings, newsletters, community information sessions, fact sheets and other avenues of communication.
 
  Aviation industry operates within a clear and robust regulatory framework.

Expected achievement:

The regulatory framework for the aviation industry has continued to be monitored and maintained to ensure it operates in a clear and robust manner. This has included developing the Air Navigation Regulations 2016 which provides a robust and flexible framework for aviation, and continuing to implement agreed recommendations from the Aviation Safety Regulatory Review.
 
  Aviation entity governance arrangements operate effectively.

Expected achievement:

Updated ministerial statements of expectation for the three portfolio aviation agencies (Civil Aviation Safety Authority, Airservices Australia and the Australian Transport Safety Bureau), new corporate plans and several board appointments were completed.
 
  Businesses and consumers have access to competitive international and domestic air services.

Expected achievement:

Businesses and consumers have access to competitive international and domestic air services, supported by one of the most liberal aviation sectors in the world.
 
  Regulatory frameworks take account of industry needs and are appropriately meeting policy objectives.

Expected achievement:

The regulatory framework for the aviation industry has continued to be monitored and maintained to ensure it meets policy objectives and takes into account industry needs. Industry needs are taken into account particularly as part of formulating any proposed regulatory change.
 
  Collaboration with industry is effective in continuously monitoring regulatory frameworks.

Expected achievement:

Ongoing collaboration with industry has been maintained, including regular consultation with industry members across industry sectors. This consultation has facilitated the effective monitoring of regulatory frameworks.
 
  Cost of airlines providing regular public services to designated remote communities is reduced.

Expected achievement:

Regular flights will be provided to 266 designated remote communities under the Remote Air Services Subsidy (RASS) component of the Regional Aviation Access Program (RAAP). Further, assistance will be provided to eligible regional commercial airlines under the Enroute Charges Payment Scheme.
 
  Cost of air operators providing aeromedical services to regional and remote areas is reduced.

Expected achievement:

The Airservices Australia Enroute Charges Payment Scheme will provide aeromedical providers with a rebate of applicable en-route charges for aeromedical services provided to regional and remote communities.
 
  Safety and access at remote airstrips is improved.

Expected achievement:

In December 2015, 52 aerodrome safety and access upgrade projects in remote areas across Australia were announced. These upgrades will improve safety and access for providers such as the Royal Flying Doctor Service.
 
2016–17 Policy advice is influential in the Australian Government's response to current and emerging international and domestic aviation industry issues.

Aviation regulation, policies and administered items effectively support future investment in safe, efficient and environmentally responsible aviation infrastructure.

Aviation industry operates within a clear and robust regulatory framework.

Aviation entity governance arrangements operate effectively.

Businesses and consumers have access to competitive international and domestic air services.

Cost of airlines providing regular public services to designated remote communities is reduced.

Cost of air operators providing aeromedical services to regional and remote areas is reduced.

Safety and access at remote airstrips is improved.

The approach to infrastructure planning, investment and development in western Sydney is integrated through consultation and coordination with key stakeholders.
Advise the Australian Government on aviation policy issues and initiatives and work on implementation of policy directions.

Promote ongoing investment in infrastructure by government agencies and industry.

Implement Australian Government aviation policy initiatives.

Meet statutory governance requirements in the relevant aviation agency legislation in relation to board appointments, corporate plans and other matters.

Engage in air services talks with key countries.

Subsidise regular public transport services to 266 designated remote communities under the RASS Scheme.

Provide rebates to eligible commercial airlines providing services to regional areas under the Airservices Australia Enroute Charges Payment Scheme.

Provide rebates to eligible aeromedical providers under the Airservices Australia Enroute Charges Payment Scheme.

Fund projects related to safety and access upgrades under the Remote Airstrip Upgrade component of the RAAP.

Create opportunities for key stakeholders and inform the community about the project's progress and address concerns they may have to ensure collaborative planning, and:
  • issue quarterly newsletters to 10,000 households in a 5 kilometre vicinity of the airport site;
  • engage with NSW Government and 10 western Sydney councils; and
  • deliver a dedicated website with up to date information.
2017–18 and beyond As per 2016–17. As per 2016–17.
Purposes Foster an efficient, sustainable, competitive, safe and secure transport system.
Material changes to Program 2.4 resulting from the following measures:
  • There are no new measures with a material impact on the performance information for Program 2.4.

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