2013 14 Corporate Plan

2013 14 Corporate Plan We protect the safety, security and commercial interest of Australians through border protection designed to support legitimate trade and travel and ensure collection of border revenue and trade statistics

Commonwealth of Australia 2013 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General s Department, 3 5 National Circuit, Barton, ACT, 2600 or posted at http://www.ag.gov.au/cca Published by Australian Customs and Border Protection Service Produced by the Design Centre July 2013

Contents Australian Customs and Border Protection Service at a glance 2 Our vision 3 Our role 3 Our people 3 Our budget 3 CEO s foreword 4 Our organisational structure 5 Our financial position 6 Funding 6 Staffing 6 Our challenges and approach 7 Our strategic priorities 10 Our key enterprise risks 13 2013 14 objectives, strategies and focus areas 14 Objective 1: Planning and engaging on reform 14 Objective 2: Effective border protection which also supports legitimate trade and travel and ensures the collection of border revenue and trade statistics 17 Objective 3: Making it easier for our people through the delivery of quality support services, systems and processes 22 Our planning framework 26 2013 14 Corporate Plan 1

Australian Customs and Border Protection Service AT A GLANCE The Australian Customs and Border Protection Service (ACBPS) is responsible for protecting the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel, and to ensure collection of border revenue and trade statistics. Preserving Australia s border integrity, one of the eight pillars in the National Security Strategy, begins well beyond Australia s physical border and is fundamental to national security. ACBPS s contribution to maintaining the integrity of the border not only supports a key national security objective but also aids in achieving the objectives outlined in the Australia in the Asian century White Paper, including economic prosperity. 2 2013 14 Corporate Plan

At a glance Our vision is To protect Australia s borders and foster lawful trade and travel. $13,518,000,000 IN SIGNIFICANT REVENUES COLLECTED Our role is to facilitate legitimate trade and travel deliver Australia s trade and industry policy, including through tariffs, tariff concessions and the anti-dumping and countervailing schemes prevent, deter and detect the illegal movement of people across Australia s border prevent, deter and detect the unlawful movement of prohibited, restricted, or regulated goods into Australia investigate suspected breaches of a range of border controls counter civil maritime security threats in Australian waters through the Border Protection Command, a joint partnership between the Service and Defence, and collect border-related revenue and statistics. Our people In 2013 14, we forecast an average staffing level of 5000 across Australia and internationally. Our budget Our net cash funding 1 for 2013 14 is $1158.60 million. 149,600,000 NM 2 OF AERIAL AND COMMERCIAL SATELLITE SURVEILLANCE COVERAGE (INCLUDES ACBPS AND DEFENCE FORCE ASSETS) 42,100,000 IMPORTED AIR CARGO CONSIGNMENTS 33,857,000 INTERNATIONAL PASSENGERS PROCESSED 2,900,000 IMPORTED SEA CARGO MANIFEST LINES 2,888,000 INTERNATIONAL CREW PROCESSED 53,600 INTERNATIONAL VESSEL MOVEMENTS 1. Net cash funding includes operating appropriation, s31 and other revenue, departmental capital budgets and equity injections. 6,450 COMMERCIAL VESSELS BOARDED 2013 14 Corporate Plan 3

CEO's foreword CEO s foreword Michael Pezzullo, CEO Australian Customs and Border Protection Service The 2013 14 Corporate Plan establishes clear priorities for how we will improve the way we protect and support the Australian community, particularly as Australia becomes increasingly reliant on international trade for economic prosperity. In recent years, our business model has faced challenges in keeping pace with developments in the border environment. We are now experiencing considerable pressure from drivers in the border environment and all indications are that these pressures will increase. The future is characterised by increasing volumes, complexity, criminal sophistication and continuing fiscal constraint. International air and sea passengers are projected to increase from around 34 million in 2013 14 to some 40 million by the final year of the forward estimates, while incoming air cargo is projected to increase by almost 125 per cent over the same period. Furthermore, the ever increasing operational tempo and complexity of maritime surveillance and response requires us to look beyond our borders to combat the effects of Australia s maritime threats. The increasing complexity in supply chains and travel routes is requiring more sophisticated methodologies to assess threats and risk at the border. The result is more pressure on the border, yet intervention times in which to prevent the illegal movement of people and goods remain limited. This environment places a premium on having highly effective intelligence and targeting and response capabilities to both prevent breaches of the border and to ensure legitimate trade and travel is not unreasonably impeded. The Corporate Plan highlights areas where we will commit to major improvements in the coming year, particularly in relation to our early work on the ACBPS Reform Programme. This plan should be viewed as a companion document to the Blueprint for Reform 2013 2018 which sets out our vision and the broad reform initiatives to realise this. Looking to the medium to long term, we recognise the need to better position the Service to be able to respond to this environment. This plan demonstrates how we will position the Service to adapt to and deliver in this complex and changing operating environment and reinforces our focus on delivering on the commitments we have made to government, including in our 2013 14 Portfolio Budget Statement. The Corporate Plan sets the direction for the development of the Service s divisional and branch plans, which detail the contributions and activities that each division and branch will make towards achieving the Service s outcomes and commitments to government in 2013 14. I commend the 2013 14 Corporate Plan to you. Michael Pezzullo CEO Australian Customs and Border Protection Service 4 2013 14 Corporate Plan

Our organisational structure Our organisational structure 2 Jason Clare MP Minister for Home Affairs Minister for Justice Michael Pezzullo CEO Steven Groves CFO ND Strategy, Planning & Resources Maree Bridger ND Reform Teresa Conolan ACBPS Chief of Staff Roman Quaedvlieg DCEO Border Enforcement Rachel Noble ND Intelligence (Chief Information Officer) Karen Harfield ND Compliance and Enforcement Marion Grant DCEO Border Management Chief Operating Officer Jeff Buckpitt ND Passengers Raelene Vivian ND Cargo & Trade Anti-Dumping and Countervailing Decisions RADM David Johnston Commander Border Protection Command Cindy Briscoe ND Support Randall Brugeaud CTO Nigel Perry ND Maritime Jan Dorrington ND Integrity, Security & Assurance Dale Seymour Commissioner Anti-Dumping Commission 2. Correct as at 15 July 2013 2013 14 Corporate Plan 5

Our financial postition Our financial position Funding Operating Revenue 1023.1 million 1030.4 million 2012 13 2013 14 + 0.71% Capital Cape Class 59.68 million 46.91 million 2012 13 2013 14 Capital Other 64.97 million 81.28 million 2012 13 2013 14 21.40% + 25.10% Total Net Cash Funding* 1147.75 million 1158.60 million 2012 13 2013 14 + 0.95% In notional terms, 2013 14 has seen a slight increase in funding levels compared to 2012 13 levels. ACBPS requested approval for a slight operating loss of $5m in 2012 13 which should be viewed as being in addition to the funding actually received. Increases in our non-labour related costs and the need to fund pay rises results in a slight decline (2.3 per cent) in staffing numbers. This decline is a continuation of staffing reductions managed by the Service since 2007 08 when our Average Staffing Level peaked at 5746. These reductions have been the result of the current fiscal environment impacting on the Australian economy and the disciplines applied by the Australian Government as part of the annual Commonwealth Budget processes. Significant annual savings have been provided back to the government over recent budgets, which have impacted the Service s capability and capacity to respond to the challenges faced at the border. Despite the tight fiscal times, support from government was received through the 2012 13 Additional Estimates and 2013 14 Commonwealth Budget processes for the following measures in 2013 14: Enhancements to Australia s anti-dumping and countervailing system $8.2m Compliance expansion measure $4.5m Funding to secure and protect our borders including extensions of ACV Triton, ACV Ashmore Guardian and Reims 406 Aerial Surveillance $49.1m. Combating People Smuggling prevention and disruption activities $6.4m. Combating People Smuggling strengthening response capability to irregular maritime arrivals (ACV Ocean Protector additional 60 patrol days) $4.0m. National Border Targeting Centre $30.2m from 2014 15. * Source 2013 14 Portfolio Budget Statement Staffing Average Staffing Level 5120 5000 2012 13 2013 14 2.34% 6 2013 14 Corporate Plan

Our challenges and approach Our challenges and approach The requirements for managing Australia s border and the challenges facing the Service continue to evolve. Our most significant challenges are substantially increasing volumes of traffic across the border; a sustained high operational tempo in the civil maritime surveillance and response domain; increasing complexity of travel routes, supply chains and criminality; as well as defending against the ongoing threat to the Service from criminal infiltration. Our business model Our business model has evolved and incrementally developed to keep pace with changes in the border environment. However as this environment continues to rapidly evolve, development of the same kind will not be sufficient. To that end we are undertaking a period of major reform the planning of which, and seeking government support for, will be a primary focus of 2013 14. Volume of border transactions The volume of transactions at the Australian border is expected to increase markedly over the budget out years. International air and sea passengers are projected to increase from around 34 million in 2013 14 to some 40 million by the final year of the forward estimates while over the same period incoming sea cargo is projected to increase from around 2.9 million to 3.2 million and incoming air cargo is projected to increase from 42 million to around 95 million. High operational tempo and complexity in the maritime domain The sustained high operational tempo along with the increasing complexity of suspected irregular entry vessel (SIEV) arrivals in the civil maritime surveillance and response areas of our business continues to absorb a significant proportion of our border protection resources. The focus on irregular 2013 14 Corporate Plan 7

Our challenges and approach maritime arrivals limits our ability to focus on other maritime threats and meet client expectations in relation to the other threat areas. The broadening of the approach corridors for SIEVs, along with the increasing trend of SIEVs seeking assistance from Australian authorities, results in our assets being required to transit significant distances in support of search and rescue activities. Asset availability issues, a reduction in the number of surface platform assets, and shortfalls in long haul capability all place significant pressure on surveillance and response capability. The transition to the Cape Class platform, the acquisition of ACV Thaiyak and planning for the transition of ADV Ocean Shield to ACBPS provide the basis for a long term fleet capable of providing flexible responses to operational challenges. Complex and diverse operating environment Complexity is increasing in supply chains and travel routes, making the task of assessing threats and risks at the border more challenging and requiring more sophisticated approaches. The range of goods, biosecurity hazards and economic risks is growing, as is the geographic area within which the Service operates, with more remote ports coming on line and ramping up operations. Intervention times in which to prevent the unlawful or unregulated movement of people and goods remain limited. With these complexities will come a big data challenge: how can we best make sense of the increased volume of data we collect? This data is not only essential for border protection; it is used to produce vital trade statistics, without which the government would be missing a fundamental part of the evidence base it needs to steer the economy. Sophisticated criminal enterprise Transnational criminal syndicates are increasing their sophistication, adapting to older detection technologies and methods. This requires our constant vigilance and continual review and adjustment of our strategies. Security imperatives mean that the need to protect Australia from those attempting to breach the border will not lessen. The risk of infiltration and corruption remains high with events during 2012 13 demonstrating the need for us to increase our focus on such vulnerabilities. Fiscal environment The Service s operating environment now and for the foreseeable future can be summarised as one of fewer resources available to manage increasing numbers and complexity of border transactions taking place in diverse channels across a large range of physical and electronic environments. The fiscal environment continues to be tight and is expected to remain so over the next few budget cycles. Our approach to managing these challenges is characterised by: focusing our efforts across the entire border continuum an increasingly sophisticated intelligence-led operating model fostering collaboration and leading at the border a focus on our professional and agile workforce, and planning for the future through our Reform Programme work. Our interventions place an increasing emphasis on working ahead of the border as part of a layered approach across the border continuum. To achieve this we work with partner agencies offshore to detect and disrupt threats to the border before they arrive, strengthen regional capabilities through capacity building to improve governance, cooperation and security, and conduct pre-arrival assessments of passengers, vessels and cargo to identify high risk travellers and goods prior to their arrival. We employ an intelligence-led model to our management of the border. In applying this model, we collect data from an extensive range of sources, conduct comprehensive analyses, and generate informed judgements to direct and shape our operational, investment, and resourcing decisions. 8 2013 14 Corporate Plan

Our challenges and approach We lead the management of risks to Australia s border in close collaboration with other government agencies, including through the development and coordination of the Australian Border Management Strategy. We support cross-agency activities to prevent, deter and detect prohibited, harmful and illegal goods and people entering Australia including operating in our Exclusive Economic Zone. The Service brings to these collaborations its extensive intelligence holdings as well as its expertise and enhanced intervention capabilities across border channels, including air and sea passengers and crew, air and sea cargo, international mail, and maritime and coastal surveillance. We partner with other law enforcement agencies to address risks and vulnerabilities at the border through joint operations and sharing of intelligence. We streamline legitimate trade and travel by codesigning our services in a way that recognises the regulatory environment we operate in, yet optimises the trade and travel experience, identifying and developing new business opportunities to maximise service delivery and enhancing our business intelligence capability. We support an open economy by ensuring compliance with the rules of trade so that competition occurs on a level playing field and the benefits of competition flow through to the Australian economy. A particular focus of 2013 14 will be pursuing initiatives under the ACBPS Reform Programme. Successful reform will deliver significant positive outcomes for Australia. Reform of the Service will support long term economic growth, securing the prosperity of the nation. Up-skilling our people, streamlining our processes and modernising our business systems will create a more efficient environment for Australia to trade with the world and make us a more attractive commerce partner. In addition, reform will create a more secure border by improving our capabilities to prevent unwanted goods and people entering the country. An intelligence-led Service will mean intervention activity will only take place where required, with improved effectiveness. Finally, reform provides us with the tools to ensure vital revenue due from trade and travel is optimised. We do not expect the current fiscal environment to change in the foreseeable future and are accordingly focused on achieving sustainable and enduring efficiencies in our business model. In part, this is to deliver on the government s financial objectives, but also reflects our long term commitment to streamlining our operations. With a Federal Election to be held in late 2013, we will continue to remain responsive to any new policy directions from government. To do this and to match the sophistication of those seeking to breach our border, we must be experts in performing our role. 2013 14 Corporate Plan 9

Our strategic priorities Our strategic priorities We remain focused on responding to current and future challenges that will impact on our operations and our workforce. In addition to those priorities listed below we undertake a range of business-asusual activities as part of our role in managing the border. These activities reflect our commitments to government and are described in more detail in our 2013 14 Portfolio Budget Statement. The following strategic priorities will be particular focus areas for the 2013 14 year positioning the Service, and our people, to continue to achieve our outcomes effectively. Reforming the Service Our Reform Programme will be a long-term change management process, informed by the Customs Reform Board, the Australian Public Service Commission s Capability Review and the Australian Commission for Law Enforcement Integrity (ACLEI) led Operation Heritage. In 2013 14, a major focus will be the development of the reform roadmap for government consideration. The three interrelated tracks of reform are: 1 2 Our People and Operating Model a professional and agile Service that is adaptive to change Modernisation efficient business systems, streamlined processes and sophisticated intelligence Some key initiatives we will focus on in 2013 14 include: enhancing our organisational suitability checking processes fully rolling out recent integrity measures including drug and alcohol testing, mandatory reporting and new CEO powers updating our honours, recognition and awards framework to formally recognise excellence, effort and service, and bedding down our new organisational arrangements and governance structures. Further information about our 2013 14 Reform Programme initiatives can be found on pages 14 16 and in the Blueprint for Reform 2013 2018, available on our website. Building a platform for the future To strengthen our capabilities for the future, we will focus on planning and developing the following priority projects: Maritime Capability Further transitioning to our Cape Class and Long Term Ashmore Capability vessels and through maritime workforce management, recruitment and training and preparing ADV Ocean Shield for Southern Ocean patrols. Targeting Capability Development and design of the Air Traveller Profiling Capability Including advanced analytics procurement, developing a new targeting and risk assessment model (travellers and cargo) and outlining cargo profiling requirements. 3 Integrity a disciplined Service culture and workforce hardened against corruption Enhanced Profiling Capability Improving enterprise behavioural and transactional risk profiling capability to identify high risk travellers and trade. Border Clearance and Enforcement System (ENFORCE) Enhancing vessel, traveller and entity reporting and risk assessment, allowing for more targeted identification of, and response to, high risk vessels and 10 2013 14 Corporate Plan

Our strategic priorities travellers with linkages to the maritime threat picture to support planning of relevant inshore, onshore and offshore activity. Enterprise Information Management Enhancing the capture and exploitation of structured and unstructured data to support analytics, corporate reporting and better informed risk decisions. Passengers Systems Stabilisation and Resilience Ensuring our existing systems have the capacity to manage short to medium term growth in traveller numbers and expanded SmartGate usage. Technology Mobility Pilot Trialling new tools for our people to access data, capture intelligence and intervention activity in real time, and receive new taskings on the go. Delivering on our commitments to government We will continue to deliver on our commitments to government, including the delivery of agreed New Policy Proposals and Ministerial announcements and through the objectives and deliverables outlined in our Portfolio Budget Statement. Some key initiatives we will focus on in 2013 14 include: establishing the Australian Anti-Dumping Commission recognising the importance and priority of the anti-dumping function to Australian industry, and ensuring a high-level focus on dumping and subsidisation of imported goods into the future laying the foundations for the National Border Targeting Centre to provide stronger, nationally coordinated operational targeting of high risk international passengers and cargo, supported by increased data integration and improved analysis capability exploring options for electronic reporting in the international mail environment, as part of the government s interim response to the recommendations of the Low Value Parcel Processing Taskforce, and leading a Senior Advisory Inter-Department Committee to develop a business case for a possible reduction in the Low Value Threshold undertaking a feasibility study to develop options for delivering an automated border processing solution for departing international travellers including an assessment to determine best fit technology that resolves a range of business and technical issues implementing a new strategic partnership with the Australian Federal Police to strengthen Australia s approach to addressing serious border crime, and implementing the compliance expansion measure to address economic risk, including revenue leakage. Managing border risk and enabling function priorities Through the development of our 2013 14 Risk Plan we have identified two border risks and four enabling functions as high priority areas to focus on improving our controls. These areas are Illicit Drugs & Precursors, Illicit Firearms, Integrity & Ethics, Knowledge & Systems, Leadership & Workforce and Corporate Governance. As part of our role at the border, we manage a range of border risks and enabling functions. Other activities we will focus on in 2013 14 include: increasing our knowledge of criminal networks and entities to focus our intelligence and targeting efforts and remain responsive strengthening local, national and international engagement and partnerships with law enforcement, intelligence and other government and non-government entities to improve information collection and data sharing to support joint agency operations and taskforces through a secure, effective and coordinated information environment implementing measures to deter and prevent infiltration by serious and organised crime into Australia s seaports, airports and cargo supply chain, including those contained in Customs and AusCheck Legislation Amendment (Organised Crime and Other Measures) Act 2013 2013 14 Corporate Plan 11

Our strategic priorities enhancing our capability to analyse domestic and foreign trade data to better identify events or trends that indicate economic risk in international trade in goods such as dumping and circumvention of the rules of trade developing an approach to passenger processing that will cope with the volumes and expectations of the next decade (the Traveller Processing of the Future Project) implementing counter-people smuggling strategic communications campaigns in key source and transit countries targeting potential irregular immigrants, their communities and people smuggling syndicates and infrastructure, and improving passenger facilitation through expansion of the SmartGate programme. Further integrating planning and resourcing In 2013 14 we will need to continue operating within a tight fiscal environment, focusing on effective resource allocation, reprioritising existing funding and developing innovative approaches to border management. In line with the Reform Programme, we will also focus on workforce planning to ensure a skilled and professional workforce capable of responding to our needs of the future. We will further develop our risk-based strategic planning process by: aligning it with the Service s reform and capability development programmes developing a 5-year Strategic Plan to ensure our vision for the future is clearly identified and communicated to staff and other stakeholders (internal and external), including government improving our risk management processes by reinvigorating our Enterprise Risk Management Framework, ensuring a consistent Service-wide approach to risk management planning and mitigation, and strengthening linkages between risk management, strategic planning, resource management, investment prioritisation and performance reporting including by deepening the body of information and evidence available to decision-makers. 12 2013 14 Corporate Plan

Our key enterprise risks Our key enterprise risks As part of our approach to managing the border, we take an enterprise risk view of our operations. In doing so, we look across the breadth of our functions to identify, assess and manage the key risks to the achievement of our objectives. The table below highlights the key enterprise risks identified in our 2013 14 Risk Plan. A focus of 2013 14 will be the management of these risks. Table 1 Australian Customs and Border Protection Service Key Enterprise Risks Key Enterprise Risks REPUTATION & ENGAGEMENT» Damage to agency reputation and public perception» Failure to effectively engage with stakeholders» Failure to work with industry» Loss of confidence in agency by the Minister INTEGRITY» Misuse of position including accepting bribes, collusion, assisting in criminal activities, and provision of damaging information» Possessing, dealing or using drugs, or being under the influence of drugs or alcohol while performing duties» Theft of public money or misappropriation of assets GOVERNANCE & ACCOUNTABILITY» Governance structures do not support effective decision making» Inconsistent use of the practice statement model, risk management tools and business planning approaches» Poor programme (and project) management LEADERS & PEOPLE» Lack of staff engagement and responsiveness to change» Difficulty in flexibly deploying workforce to meet changing workloads and expectations» Poor supervision, inadequate training or misalignment to work requirements» Failure to agree to a new Enterprise Agreement by June 2014 FINANCE» Not delivering within budgets» Capital budget does not meet capacity requirements» Poor financial practices including non-compliance with Commonwealth requirements and regulations» Poor contract management including value for money and agreed outcomes INFORMATION MANAGEMENT & TECHNOLOGY» Failure to deliver ICT services and projects» Malicious or unauthorised use of ICT infrastructure and systems» Poor systems management and planning including maintenance and replacement LAW & REGULATION» Inappropriate use of officer powers» Failure to meet regulatory standards» Lack of flexible sanctions and options for addressing non-compliance» Exposure to legal sanction through inappropriate actions PROPERTY & PHYSICAL SECURITY» Lack of preparedness for business disruption» Failure to address security needs» Lack of centralised control around decisions that have a material impact on the property portfolio HEALTH & SAFETY» Failure to meet requirements under the Work Health and Safety Act 2011» Exposure to hazardous substances or dangerous environments leading to physical harm» Exposure to occupational stress and fatigue 2013 14 Corporate Plan 13

2013 14 objectives, strategies and focus areas 2013 14 objectives, strategies and focus areas Objective 1: Planning and engaging on reform The future outlook for Australia s border is particularly challenging. More than ever before, ensuring the security and integrity of our borders is essential for the economic prosperity and protection of the Australian community. To meet this challenge, we are entering a period of significant reform. Our immediate focus across 2013 14 will be detailed and ongoing conversations with our staff, industry, the community, partner agencies, government and other stakeholders on the Service s vision and reform initiatives. This engagement will assist us in the detailed business planning we need to undertake to achieve our vision. We have a lead role in driving collaboration between border agencies, and one way we exercise this responsibility is through the Border Management Group. The group is responsible for strategic border coordination and for performing the detailed work required to implement, review and evaluate strategic border management planning activity. The Border Management Group is the primary consultative mechanism for our Reform Programme to engage with government stakeholders. The following table details some broad reform initiatives that will begin or be progressed during 2013 14. Other reform-related initiatives are also identified further in this Plan and are designated by R. More information on our Reform Programme can be found in the Blueprint for Reform 2013 2018, available on our website. 14 2013 14 Corporate Plan

2013 14 objectives, strategies and focus areas STRATEGY 1.1 Developing a roadmap for reform We will achieve this by 2013 14 Focus areas 1.1.1 Culture, leadership and integrity transformation 1.1.2 Developing a Service-wide program to build a professional culture for the future Introducing a new leadership and engagement program that continually develops the leadership skills of officers across all levels Appointing a Special Integrity Adviser, reporting directly to the CEO, who will manage the investigation of complex and serious cases of misconduct, including those undertaken jointly with ACLEI Implementing a new professional standards practice model to further strengthen our professional standards function including a revised structure and an enhanced compliance and case management capability Developing mitigation strategies to treat ongoing integrity risks and vulnerabilities, including by utilising fixed tenure periods and toughening our policy on using personal mobile devices Enhancing the organisational suitability checking processes to be better able to detect and deal with officers with criminal associations Reviewing practices around secondary employment to strengthen anticorruption measures Working with partner agencies to develop a deployable integrity testing capability Implementing the drug and alcohol testing program following its 2012 13 pilot Embedding new legislative powers around mandatory reporting and CEO powers Workforce transformation As part of the reform roadmap, developing a new workforce model to deliver our vision and provide a new career system 2013 14 Corporate Plan Working with our people and their representatives to develop a new people strategy that aligns with our future vision and provides a framework for building the right leadership and culture Exploring a standardised approach to training across the Service that develops a breadth of capability Building on our strategic partnerships and recent secondments by developing a Secondment and Exchange Program to identify opportunities to embed our officers with, and host other officers from, partners in government and industry Introducing a new Awards and Recognition Framework to formally recognise excellence, effort and service Developing an internal communication framework and staff engagement strategy that focuses on engaging staff in the reform programme, and improves staff engagement at all levels on the Service s vision, values, priorities and risks 15

2013 14 objectives, strategies and focus areas We will achieve this by 1.1.3 2013 14 Focus areas Intelligence transformation Building new intelligence and information management frameworks that provide a foundation for enhancing our intelligence approach and ensuring our people are supported by high quality, accurate and actionable information 1.1.4 Enforcement transformation 1.1.5 Building a strategic partnership with the Australian Federal Police to enhance our fight against border crime, including trialling a new model for undertaking border crime investigations Increasing our use of sanctions against non-compliant trading and traders and targeting weaknesses in the border control framework Identifying opportunities to introduce new technologies that allow our people to access data in the field, capture intelligence and intervention activity in real time, and receive new taskings while on the go Enabling transformation Identifying opportunities to enhance our systems to deliver improved support for performance management, talent management, payroll and self-service functions Designing a new technology platform that consolidates and standardises our IT systems, based on sound governance approaches Comprehensively reviewing our legislative and regulatory frameworks 16 2013 14 Corporate Plan

2013 14 objectives, strategies and focus areas Objective 2: Effective border protection which also supports legitimate trade and travel and ensures the collection of border revenue and trade statistics STRATEGY 2.1 Preventing, detecting and deterring the movement of prohibited, restricted or regulated goods or people or from operating illegally within Australia s maritime zones We will achieve this by 2013 14 Focus areas 2.1.1 Enhancing risk-assessment and other intelligence and targeting activities 2.1.2 Conducting aerial, commercial satellite and surface maritime surveillance and response activities R»» Laying the operating principles for the National Border Targeting Centre and developing our end state Intelligence design R»» Successfully progressing the detailed system design of the ENFORCE system, including implementing the pleasurecraft and electronic form reporting project to modernise reporting requirements R»» Building an enterprise profiling capability that enables highly automated risk profiling and results evaluation Utilising industry information and sources in our intelligence and risk assessment processes Further transitioning to our Cape Class and Long Term Ashmore and Southern Ocean vessel capabilities, including launch of the Cape Byron and planning for ACV Thaiyak and shared use of ADV Ocean Shield R»» Enhancing maritime workforce management, recruitment and training for future capabilities Engaging with Defence on integration of surveillance outcomes from new capabilities including Unmanned Aerial Vehicles into the maritime operational picture to ensure ongoing Defence support for the civil task Conducting a trial of radar technology on Cocos (Keeling) Islands 2013 14 Corporate Plan 17

2013 14 objectives, strategies and focus areas We will achieve this by 2.1.3 Undertaking targeted inspection and examination of people and goods at the border, including through evaluating and deploying a range of detection technologies 2.1.4 Operational activity responding to threats and suspected breaches of Australian border laws 2.1.5 Undertaking an effective risk based compliance program, which utilises pre- and post-clearance monitoring and intervention activities to promote observance of Australian border laws as they relate to the movement of cargo 2013 14 Focus areas R»» Enhancing our inspection and examination capabilities including through the deployment and use of new and improved technologies and the up-skilling of our people Building upon the success of Joint Agency Task Force Polaris in Sydney, Trident in Melbourne and Yelverton in Fremantle, including the establishment of Joint Agency Taskforce Jericho in Brisbane, to address criminality in the maritime environment and the cargo supply chain R»» Increasing targeted patrol activity on the waterfront, and in remote areas, enhanced through intelligence gained from task forces, overseas sources and locally Planning operational responses to threats posed by crew and passengers of commercial cargo and cruise vessels including new initiatives with industry to assess passengers pre-arrival Engaging with AFP, DEA and Pacific countries to improve intelligence collection and enhance operational response against smallcraft threats Improving planning of remote patrol and public visitation programs to develop knowledge of remote coastal areas Expanding our international cooperation to identify and address risks associated with the importation and exportation of prohibited, restricted and regulated goods, including through involvement in bilateral and multilateral campaigns and operations and by pursuing trade data sharing arrangements R»» Increasing the Service s engagement with industry stakeholders to obtain industry intelligence regarding behaviours in their sector, which may be indicative of non-compliance with Australian import and export requirements Implementing the Customs and AusCheck Legislation Amendment (Organised Crime and Other Measures) Act 2013 to address vulnerabilities at Australia s borders 18 2013 14 Corporate Plan

2013 14 objectives, strategies and focus areas We will achieve this by 2.1.6 Conducting border-related offences investigations and prosecutions 2.1.7 Working ahead of the border with international partners to identify threats, share information and develop capability 2.1.8 Managing maritime people smuggling and irregular maritime arrivals 2013 14 Focus areas R»» Implementing a new strategic partnership with the AFP underpinned by a joint triaging and decision-making arrangement to enable a shared understanding of crime impacts on the border and to maximise criminal disruption outcomes Developing an International Engagement Strategy and region, country and entity plans R»» Establishing a secure information environment to encourage greater collaboration and seamless sharing across multiple classification levels Working with partner agencies and government to develop new approaches to managing the threat posed by maritime people smuggling Supporting our staff through this extended period of high operational tempo and increasing complexity Implementing counter-people smuggling communications campaigns in key source and transit countries Developing options for long and short haul transport beyond 2013 14 2013 14 Corporate Plan 19

2013 14 objectives, strategies and focus areas STRATEGY 2.2 Facilitating and regulating the movement of passengers and goods We will achieve this by 2.2.1 Expanding the SmartGate program to facilitate traveller processing 2.2.2 Developing an approach to passenger processing that will cope with the volumes and expectations of the coming years (Traveller Processing of the Future project) 2.2.3 Implementing the Australian Government s reforms to the anti-dumping system 2.2.4 Implementing the government s interim response to the recommendations of the Low Value Parcel Processing Taskforce 2013 14 Focus areas R»» Rolling out new SmartGate facilities and expanding the range of eligible travellers R»» Developing feasibility studies/business cases around the automatic processing of outwards passengers R»» Testing the market to improve our understanding of new and emerging technologies R»» Trialling and testing next generation traveller processing technologies Establishing the Australian Anti-Dumping Commission Implementing a review mechanism where prices of dumped goods do not rise as a result of imposed duties Developing a business case for a possible reduction in the Low Value Threshold and related reforms and government acceptance of business case 20 2013 14 Corporate Plan

2013 14 objectives, strategies and focus areas STRATEGY 2.3 Maintaining our border-related revenue collection capabilities We will achieve this by 2013 14 Focus areas 2.3.1 Improving the Service s understanding of economic risk 2.3.2 Assessing, reporting, collecting and paying border-related revenue, including the application of refunds, concessions and exemptions 2.3.3 Undertaking an effective risk based compliance program, which utilises pre- and post-clearance monitoring and intervention activities to promote observance of Australian border laws as they relate to revenue reporting and payment obligations 2.3.4 Effectively administering the Tourist Refund Scheme R»» Developing a dedicated trade analysis capability to better identify events or trends that indicate economic risk in the international trade of goods R»» Enhancing the Service s capability to analyse domestic and foreign trade data for the purpose of identifying circumvention of the rules of trade Implementing changes to the Import Processing Charge announced in the 2013 14 Federal Budget including implementing supporting legislation and updating relevant systems Collection of revenues (including customs duty, passenger movement charge, import processing charge and GST) R»» Implementing the compliance expansion measure to reduce economic risk, including revenue leakage Continuing to intervene in traditional revenue risk areas including misclassification, undervaluation, and misuse of origin and concessions Implementing the Customs and AusCheck Legislation Amendment (Organised Crime and Other Measures) Act 2013 to address vulnerabilities at Australia s borders Enhancing stakeholder engagement strategies to raise the awareness of the importer community R»» Reviewing options for streamlining the management and approval of TRS claims 2013 14 Corporate Plan 21

2013 14 objectives, strategies and focus areas Objective 3: Making it easier for our people through the delivery of quality support services, systems and processes STRATEGY 3.1 Improving our accountability, legal, governance and risk management arrangements We will achieve this by 2013 14 Focus areas 3.1.1 Improving leadership and accountability across the Service 3.1.2 Strengthening the Service s legal capabilities both centrally and in the regions 3.1.3 Ensuring a consistent Service-wide approach to risk management planning and assurance R»» Developing and implementing accountability statements for all Senior Executive Service Officers R»» Developing and implementing a new Leadership and Management Strategy R»» Developing a Service-wide legal strategy that encapsulates the entire legal domain Improving effectiveness of commercial law assistance for procurement and contract management Implementing the Enterprise Risk Management Framework including the introduction of formal risk management training Testing of Business Continuity Plans through a reinvigorated exercise programme Aligning internal audit work planning with the Enterprise Risk Management Framework 22 2013 14 Corporate Plan

2013 14 objectives, strategies and focus areas STRATEGY 3.2 Enhancing our strategic, workforce and human resources planning and systems We will achieve this by 2013 14 Focus areas 3.2.1 Strengthening the connections within our strategic planning system (threading through our PBS, Strategic Plan, Corporate Plan, Divisional Statements and Individual Performance Agreements) 3.2.2 Focusing on people management and workforce planning to support a skilled and professional workforce Linking our reform programme into broader strategic planning including through the development of a 5-year Strategic Plan Strengthening linkages between risk management, strategic planning, resource management, investment prioritisation and performance reporting including by deepening the body of information and evidence available to decision-makers R»» Introducing a long-term workforce plan aligned with our reform of the workforce Implementing recommendations of the Performance Feedback and Recognition Pilot Negotiating a new Enterprise Agreement that recognises the requirements of the current workforce and prepares for the workforce of the future Reviewing work level standards and job design to provide clear expectations R»» Developing a Service-wide induction strategy Developing a Service Multicultural Plan and implementing related initiatives 3.2.3 Strengthening our work health and safety management system 3.2.4 Encouraging, fostering and rewarding innovation Implementing the Work Health & Safety Plan Developing an Injury Prevention Strategy and Premium Management Strategy Developing an Innovation Framework that encourages innovation, collects ideas and measures their success 2013 14 Corporate Plan 23

2013 14 objectives, strategies and focus areas STRATEGY 3.3 Strengthening information management, information and communication technology, and financial management capabilities and services We will achieve this by 2013 14 Focus areas 3.3.1 Improving the Service s information management and telecommunications capabilities 3.3.2 Augmenting our approach to information security to improve our resilience to internal and external threats R»» Reinvigorating our Information Management strategy and roadmap R»» Developing an Information Management framework including policies, architectures, common data standards and governance arrangements R»» Examining next generation profiling and risk targeting systems R»» Evaluating new advanced analytics and situational awareness systems to assist with understanding current environment and predict future events R»» Implementing a new Electronic Document and Records Management System Consolidating ACBPS s internet gateway as part of the government s Internet Gateway Reduction Program Rolling out new telecommunications contracts, including hardware acquisition Continuing implementation of the Protective Security Policy Framework R»» Implementing the Information Security and Assurance Programme, including cybersecurity 24 2013 14 Corporate Plan

2013 14 objectives, strategies and focus areas We will achieve this by 3.3.3 Continuing improvements in our financial management capabilities 3.3.4 Reviewing the structure, objectives, deliverables and KPIs in our Portfolio Budget Statement 3.3.5 Ensuring a Service-wide approach to housing, accommodation and property management 2013 14 Focus areas Reviewing our Budget Resource Management Framework to better support the passage of the Reform Programme through the Commonwealth Budget process Complying with Commonwealth financial management requirements on Statutory financial and internal reporting Revising our PBS for 2014 15, including the program structure and related deliverables and KPIs Enhancing KPI reporting through divisional dashboards to assist in improved operational decision making Developing a Strategic Property Plan which aligns with our Reform Programme and maximises opportunities for cost reductions and improved compliance with Commonwealth Property Requirements. Implementing the ACT Accommodation Strategy and managing an approach to market 2013 14 Corporate Plan 25

26 2013 14 Corporate Plan Our planning framework Minister s Statement of Expectations CEO s Letter of Intent Customs Reform Board Government Priorites Australia in the Asian Century White Paper Defence White Paper Strategic Threat Assessment International Engagement Strategy Australian Border Management Strategy National Security Strategy External Reviews and Audits Strategic Planning Guidance SES Conferences *To be developed in 2013 14 INPUTS Blueprint for Reform 2013-2018 Annual Risk Plan APSC Capability Review CORPORATE PLANNING STRATEGIC PLAN* CORPORATE PLAN DIVISIONAL STATEMENTS BRANCH/TEAM PLANS INDIVIDUAL PERFORMANCE AGREEMENTS PORTFOLIO BUDGET STATEMENT INTERNAL BUDGET ANNUAL PROCUREMENT PLAN RESOURCING INVESTMENT CAPITAL BUDGET WORKFORCE PLAN ACCOUNTABILITY AND REPORTING Annual Report Mid-year and End-of-year Reviews Performance discussions Performance dashboards / KPIs CAPITAL MANAGEMENT PLAN 5-YEAR INVESTMENT BUDGET PROPERTY PLAN Our Planning Framework