annual report 2014 – 15 - agsags annual report 2014–15 3this is the final annual report from ags...

Australian Government Solicitor

annual report 2014 – 15

AGS Annual report 2014–15 i

Australian Government Solicitor

Letter of transmittal 1

AGS consolidation with the Attorney-General’s Department 2

CEO’s review 3

PART 1 – Delivering our mandate and corporate plan 5

About AGS 6

Support for the Attorney-General 10

Operating as a government business enterprise 18

Outcomes against our corporate plan 22 Our clients 22 Our practice 25 Our people 27 Our business 32

PART 2 – Accountability and management 35

Corporate governance 36

Social responsibility 44

PART 3 – Financial statements 53

PART 4 – Appendixes 85

Forums and publications 86

Compliance index 90

Index 92

annual report 2014 – 15

ii AGS Annual report 2014–15

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AGS Annual report 2014–15 1

28 September 2015

Attorney-GeneralParliament HouseCANBERRA ACT 2600

Dear Attorney-General

AGS Annual Report 2014–15

I have great pleasure in submitting to you, for presentation to each House of Parliament, the annual report of the Australian Government Solicitor (AGS) covering the period 1 July 2014 to 30 June 2015.

The report has been prepared in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013.

Yours sincerely

Ian Govey AMThe Australian Government Solicitor

Australian Government Solicitor 4 National Circuit Barton ACT 2600

Locked Bag 7246 Canberra Mail Centre ACT 2610 T 02 6253 7000 DX 5678 Canberra

www.ags.gov.auCanberra Sydney Melbourne Brisbane Perth Adelaide Hobart Darwin

2 AGS Annual report 2014–15

On 1 July 2015, AGS ceased to be a separate Commonwealth agency and government business enterprise, and was consolidated into the Attorney-General’s Department (AGD).

This resulted from a decision announced in the Mid-Year Economic Fiscal Outlook statement in December 2014 as part of the Government’s Smaller Government Reform Agenda that was foreshadowed in the report from the National Commission of Audit in 2014.

Following the announcement, AGS and AGD established a steering committee (led by AGS CEO Ian Govey and AGD Deputy Secretary David Fredericks), a joint project team (led by AGD’s Carmen Miragaya and AGS’s Daryl Adam) and several working groups, to bring about consolidation by 1 July. Key undertakings to achieve consolidation included:

— determining AGS’s new governance arrangements and amending its enabling legislation, the Judiciary Act 1903

— defining the nature and financial basis of AGS’s operations going forward

— transferring AGS staff to AGD (and the Australian Public Service)

— ensuring AGS clients experienced no disruption or decline in standards of legal service and client care.

Details of these undertakings are covered in the body of this report. A summary of outcomes as at 1 July 2015 follows:

Governance and legislationAGS is now a group within AGD, headed by the Australian Government Solicitor, who reports directly to the Secretary. The appointment of AGS’s CEO Ian Govey AM as the Australian Government Solicitor was announced on 23 June 2015.

AGS retains its name and branding and AGS lawyers continue to appear in that name as solicitor on the record.

The consolidation was effected through legislation – the Judiciary Amendment Bill 2015 – which came into effect on 1 July 2015.

Financial basis and commercial operationAGS continues to be a Commonwealth trading enterprise operating in the marketplace, providing the full range of legal services as a self-funded, competitive, fee-for-service operation. It has no Budget appropriation. It continues to operate as a legal services provider on the Legal Services Multi-Use List and competes in the market for the great majority of work.

Pricing arrangements for tied work and outposted lawyers have changed and will now be provided on a cost-recovery basis.

Staff arrangementsAll AGS staff (employed under the Judiciary Act) transferred to AGD and, by means of a determination under section 72 (1) of the Public Service Act 1999, became employed by the Commonwealth of Australia in AGD within the public service. This entailed assessing the job role classifications of all staff to APS levels.

The AGS Enterprise Agreement continues to apply to AGS staff until new arrangements are in place.

Client mattersThe solicitor–client relationship continues to exist between AGS and its clients. AGD is exempt from the Freedom of Information Act 1982 for documents relating to AGS’s legal activities.

A new Confidentiality Protocol ensures information provided to AGS by clients will be kept confidential. Persons within AGS continue to discharge their obligations in relation to that information under legislation, including the Judiciary Act, which requires equitable, contractual and professional duties of confidence.

Second-stage reviewA review of Commonwealth legal services, to be carried out by AGD’s Secretary, was also announced in December 2014. The review will seek to identify potential efficiencies and deliver the best outcomes for the Government from the full array of legal services available.

AGS CONSOLIDATION WITH THE ATTORNEY-GENERAL’S DEPARTMENT, JULY 2015


This is the final annual report from AGS as a government business enterprise (GBE). As of 1 July 2015, AGS became part of AGD.

As we plan for 2015–16, as a self-funded commercial operation within AGD, I see continuing success ahead. We will retain our focus on providing excellent legal advice and representation, outstanding client service, and on being effective and efficient in our business operations.

The transition to AGD has been smooth and I look forward to us developing closer professional relationships with our colleagues.

As a GBE, AGS had one of our best years yet in 2014–15. Our trading over the 12 months was excellent. Our clients increased their use of AGS and we significantly increased our legal trading profit compared with the previous year. Our operating margin and return on capital were also well in excess of our corporate plan targets.

These results continue a positive trend from recent years, and mark a good result overall for AGS as a GBE. Since we became a GBE in 1999, AGS has made total profits (before tax) of $173 million and made payments to the Commonwealth of $262 million, covering dividends, taxation, competitive neutrality payments and loans.

We continue to be by far the largest single provider of government legal services, with a steady market share of around 41%, 3 times greater than our nearest competitor.

We had a very full year again advising on major legal matters. Some of them include:

— the Royal Commission into Institutional Responses to Child Sexual Abuse

— the Royal Commission into the Home Insulation Program

— the sale of Medibank Private

— proposed foreign fighters legislation

— the second Sydney airport

— application of the Public Governance, Performance and Accountability Act 2013 (PGPA Act)

— immigration matters, including a number before the High Court or Full Federal Court

— the implications of the High Court’s decision in Williams No. 2 for government agencies’ spending

— constitutional support for the proposed introduction of data retention obligations on telecommunications service providers

— constitutional recognition of Indigenous Australians and the proposal for a referendum.

AGS uses regular client surveys to ensure we understand client needs and continue to provide high-quality service. This year’s survey, conducted in February by an independent consultant, delivered very positive results – with a client satisfaction rating of 96%.

Our outpost practice was again in higher demand than previous years and provided valuable contact for our lawyers with client in-house teams. Our outposts worked on some of the Government’s most challenging matters, including major commercial and litigation matters and legislative proposals.

Our training courses, legal forums, Government Law Group seminars and publications continue to be highly valued. Our programs, which we often offer as ‘value-add’ services to clients, help maintain high standards of practice in government law generally and provide valuable contact and relationship development between AGS and client teams.

I want to take this opportunity to thank everyone involved in the consolidation process. It is a challenging job to bring

CEO’s review


2 organisations with different governance arrangements together and I appreciate the efforts of everyone who worked so hard to make it happen. In particular, I thank the Secretary of AGD, Chris Moraitis PSM, Deputy Secretary David Fredericks, the Joint Project Team and the various working groups.

I wish to thank our clients for their continuing support for AGS throughout the year, particularly in the lead up to the consolidation, and our shareholder Ministers and AGS Advisory Board for their guidance. I am very grateful to the AGS Board and the executive team for their unstinting support and guidance, and all AGS staff for their patience and ongoing commitment to delivering excellent work during a time of change.

While returning to AGD is a big change for AGS, it is also a change for the Department. From 1 July, AGD includes a highly-competitive, commercial business operation, with staff comprising about a quarter of the newly-consolidated Department.

I believe this is a great opportunity for us all to build on the strengths of both organisations, to combine our talents and experiences and, together, deliver the best possible services to government.

Ian Govey AM

PART 1delivering our mandate and

corporate plan



AGS is the nation’s foremost provider of legal services to government.

For the reporting period, AGS was a GBE with 2 shareholder Ministers – the Attorney-General and the Minister for Finance. (On 1 July 2015, AGS ceased to be a separate agency and GBE and was consolidated with AGD – see p 2. Post the reporting period, AGS continues to operate as a Commonwealth trading enterprise from within AGD.)

AGS operates on a commercial basis within a competitive market. We receive no Budget funding and consistently return revenues to government. Since 1999, when AGS became a GBE, we have made profits (before tax) of $176 million, and made payments to the Commonwealth of $262 million, covering dividends, taxation, competitive neutrality and loans.

We assist the Attorney-General in the role of First Law Officer and we advise the Executive Government and all Commonwealth agencies. We comment on submissions to Cabinet, and work closely with the Solicitor-General and AGD’s Office of Constitutional Law on every significant constitutional case in the High Court of Australia.

As a practice, AGS is structured into 3 groups – the Office of General Counsel (OGC), AGS Dispute Resolution and AGS Commercial – which work together on complex matters that require expertise across several areas of law.

About AGSOur lawyers advise on the full spectrum of government activity, including law-making, implementation and interpretation, commercial negotiations, constitutional matters, risk management, dispute management, the establishment and administration of Commonwealth agencies and machinery-of-government changes. We undertake the full range of corporate and commercial legal work, from routine transactional matters to contracts for multi-million-dollar procurements.

We act in all types of disputes, from small claims to the largest and most sensitive litigation matters. We practise in all Australian courts and tribunals, including the High Court, Federal Court, Federal Circuit Court, Administrative Appeals Tribunal (AAT) and the Supreme Courts of all Australian States and Territories.


OUR MANDATEFor the reporting period, AGS’s mandate from government emphasised 2 objectives.

We were to support the Attorney-General in the role of First Law Officer of the Commonwealth by:

— providing quality legal services to the Australian Government and its agencies

— ensuring that we maintain:

– the ability, through our focus on government, to meet the general legal services needs of agencies at competitive prices

– a ‘whole-of-government’ approach

– the corporate memory of Commonwealth legal practice and advice given by AGS on the Constitution and the law applicable to the Australian Government and its agencies

– the ability to meet the unique legal services needs of the Australian Government, including in the areas of work reserved for government providers.

We were to operate efficiently as a government business enterprise and add shareholder value by:

— operating on a commercial basis

— achieving a commercial rate of return on equity investment

— paying agreed dividends to the Commonwealth.

OUR VISION Our vision for the reporting period was:

To be a world-class adviser helping our clients to advance the national interest.

OUR ETHICS AND VALUESOur ethics govern our attitudes and actions. They reflect our distinctive character as a government business providing legal services to predominantly public sector clients.

Our ethics are integral to the way AGS employees work together. Our shared commitment to AGS operating as an ethical business strengthens us and what we offer to our clients.

Our core values are:

— integrity, which requires us to be honest and impartial in our dealings with others

— professionalism, which demands excellence in working with our clients and interacting with the legal system

— collegiality, which necessitates our working collaboratively as a national team sharing our knowledge

— commitment to the public good, which inspires us in what we do.

By acting in accordance with these values, we earn the respect of, and show respect for, our clients, our colleagues, our shareholders, the legal system and the public at large.

Our ethics and values are put into practice through the AGS Code of Conduct, which sets out the principles and rules of conduct that guide our people in the high professional and ethical standards required of them.


PERFORMANCE SUMMARY 2014–15

Performance against government business enterprise KPIs

KPIs and measures 2014–15 2014–15Corporate plan Actual

1. Financial performance Revenue from legal service trading ($m) 116.8 120.2

Total shareholder return (%) 10.0% 1.4%*

Dividend yield as % of average commercial value

(%) 11.7% 32.5%

EBIT ($m) 4.0 8.6

EBITDA ($m) 7.9 12.6

Return on equity (RoE) (%) 10.1% 0.7%*

Net profit after tax (NPAT) ($m) 3.6 0.2*

Underlying net profit after tax ($m) 3.6 0.2*

2. Business efficiencyOperating margin (%) 6.8% 10.5%

Return on capital employed (%) 8.3% 23.9%

Debtors age (days) 75 85

3. Leverage solvencyInterest cover (times cover) – –

Current ratio (times cover) 1.5 1.4

Liquidity ratio (times cover) 0.7 0.7

Wages expense ratio (%) 73% 71.9%

4. Customers and stakeholdersCustomer satisfaction 75–80% 96%

5. StaffStaff turnover rates 11% 11%

Staff satisfaction 70–75% not measured

* These figures have been affected by the consolidation of AGS into AGD. This includes a $6.6 million write-off of the deferred tax asset previously held on the balance sheet.


AGS at work

Andras Markus Joe Edwards Andrew Buckland

Australian Communications and Media Authority v Today FM

On 4 March 2015 the High Court of Australia handed down its judgment in favour of the Australian Communications and Media Authority (ACMA) in the matter of Australian Communications and Media Authority v Today FM (Sydney) Pty Ltd.

The Court’s unanimous decision overturned a previous ruling by the Full Court of the Federal Court of Australia in favour of the radio station, and confirmed the ACMA’s power to make a finding that Today FM breached a condition of its licence (which required that it not use the broadcasting service in the commission of an offence) by recording and then broadcasting, without consent, a prank telephone call to King Edward VII’s Hospital in London in December 2012.

The High Court’s judgment noted that: ‘It is the Authority’s function to monitor and regulate broadcasting services throughout Australia. There is no incongruity in empowering the Authority to take administrative enforcement action against a licensee who uses the broadcasting service in the commission of an offence, whether the offence is against Commonwealth, State or Territory law.’

The High Court held that the ACMA does have power to make an administrative determination that a licensee has committed a criminal offence as a preliminary to taking enforcement action under the Broadcasting Services Act 1992, despite there being no finding by a court exercising criminal jurisdiction that the offence has been proven. The Court so held because, in making such a determination, the Authority is not making a determination of a binding and conclusive character nor adjudging and punishing criminal guilt.

Significance of the decisionAs Gageler J pointed out in his concurring reasons, it will always be a question of construing the relevant statute to determine:• whetheraregulatorisauthorisedtomakeafindingthatapersonhascommittedacriminaloffence• ifso,whetherthatparticular authorisation is consistent with the separation of executive and judicial

power established by Ch III of the Constitution.

However, the High Court’s decision makes clear that there is no necessary barrier to a regulator being authorised to act in this way. As such, the decision is of considerable significance to all of those regulators – Commonwealth, State and Territory – that oversee legislative regimes that require them, as part of their regulatory functions, to consider whether breaches of the criminal law may have occurred.

The AGS team that worked on the High Court appeal included Special Counsel Dispute Resolution Andras Markus and Senior Lawyer Joe Edwards for the ACMA, and Senior Executive Lawyer Andrew Buckland and Senior Lawyer Simon Thornton for the Attorney-General (intervening).

Simon Thornton

Supporting the Attorney-General as First Law Officer of the Commonwealth is fundamental to AGS’s operations and to our value as the Government’s own legal adviser.

We assist the Attorney-General as First Law Officer by ensuring the Government has high-quality legal and related services that advance the national interest. We also play an essential role in helping government agencies to comply with the Legal Services Directions (LSDs), in particular, the obligation to act as a model litigant in the conduct of litigation.

TIED WORKAGS undertakes tied (non-contestable) work, which the Government has determined should be performed by AGS and other tied providers pursuant to the Attorney-General’s LSDs. Tied work covers legal work associated with the Constitution, Cabinet matters, national security and public international law.

Constitutional mattersAGS advises the Government on constitutional issues and conducts its constitutional litigation. Constitutional law involves essential aspects of Australia’s system of government which can have enduring and whole-of-government implications extending beyond the interests of any particular department or portfolio. These considerations require a high and specialised level of legal expertise and central coordination.

We maintain a uniquely qualified team of lawyers with extensive experience in advising on constitutional issues and in the conduct of constitutional litigation.


Support for the Attorney-GeneralCabinet mattersCabinet work includes legal advice which is to be considered by Cabinet or relied on in preparing a Cabinet submission or memorandum, and legal advice on a legislative proposal to be considered for adoption by government or on draft legislation for introduction into Parliament.

We also review Cabinet submissions to identify potential constitutional and other legal issues arising from proposals.

National securityAGS works closely with AGD and security and law enforcement agencies to deliver outcomes in national security. Our centrally coordinated national security practice ensures consistency and quality in our capability across all AGS offices. National security was a high priority for the Government during 2014–15. We acted in major matters involving protection of national security information, offences and criminal proceedings related to national security and review of administrative decisions relating to security assessments.

International law AGS advises on international law issues, working closely with AGD’s Office of International Law (OIL). During the year, in consultation with OIL, we advised on matters that required consideration of international treaties, arrangements and declarations. A significant portion of these advices assessed the possibility of relying on the external affairs power in the context of constitutional risk assessments of new policy proposals.


COMMISSIONS, INQUESTS, TRIBUNALSAGS advised and acted for the Commonwealth and its agencies in a number of matters involving the work of bodies of enquiry and tribunals. Our work included:

— performing the role of solicitor assisting the Royal Commission into Institutional Responses to Child Sexual Abuse

— representing the Commonwealth at the Royal Commission into the Home Insulation Program in Parliament, which released its report in August 2014

— representing the Commonwealth in hearings in Darwin for the Royal Commission into Institutional Responses to Child Sexual Abuse related to the Retta Dixon children’s home

— acting for the Department of Immigration and Border Protection in a Coronial Inquest into the death of Hamid Khazaei, an unauthorised maritime arrival who died in Brisbane following a medical evacuation from Manus Regional Processing Centre, Papua New Guinea

— representing the Commonwealth at the Coronial Inquest into the deaths in 2012 of 3 Australian soldiers in Afghanistan

— representing a range of Commonwealth agencies, including the Australian Security Intelligence Organisation, the Australian Federal Police (AFP), AGD and the Department of Defence, regarding the inquest into the siege at Lindt Café, Sydney

— successfully defending an adverse security assessment made about an Australian citizen in MYVC v Director General of Security and Minister of Foreign Affairs in the AAT and successfully defended an appeal from that decision in the Federal Court

— acting for the Medical Board of Australia in relation to the registration of Dr Philip Nitschke

— assisting the Commonwealth in the World Trade Organization challenge to the plain packaging legislation, which had the first substantive meeting with the Panel in Geneva on 1 June 2015. This included a session in which third parties made oral statements.

— representing the Commonwealth at a hearing in Singapore in the investor State arbitration initiated by Philip Morris Asia Limited against the Commonwealth under the bilateral investment treaty (BIT) between Australia and Hong Kong. Philip Morris Asia, which is incorporated in Hong Kong and, since 2011, has been the parent of the Australian Philip Morris companies, is challenging Australia’s Tobacco Plain Packaging Act under the BIT. The hearing in Singapore concerned Australia’s challenge to the arbitral tribunal’s jurisdiction.

IN COURTSAGS represented the Government in a substantial amount of litigation work this year. This included both constitutional and general (non-constitutional) litigation.

The Government can become involved in constitutional litigation in 2 ways. The first is when the Government is a party in its own right, where proceedings have been commenced by or against it. Second, the Commonwealth Attorney-General has a right to intervene on behalf of the Government in cases raising constitutional issues. The Judiciary Act 1903 requires parties in such cases to give Attorneys-General notice of the constitutional issues (under s 78B) to allow a decision to be made on intervention by each Attorney-General (under s 78A).

AGS’s role includes considering notices given under the Judiciary Act and, in consultation with the Commonwealth Solicitor-General and interested agencies, advising AGD on whether the Attorney-General should intervene.

This year AGS reviewed 215 notices given under s 78B of cases raising constitutional law issues. The Attorney-General intervened under s 78A in 7 cases, all of which were in the High Court.

AGS also advises the Government on all submissions on constitutional law issues that are put to courts on behalf of Commonwealth agencies. This is to ensure that submissions are accurate and apply Commonwealth constitutional policy consistently.


Constitutional cases often require lawyers from both OGC and AGS Dispute Resolution to work in concert.

Significant constitutional litigation matters this year follow:

— AGS acted for the Director-General of Security and the Minister for Immigration and Border Protection in a challenge to an adverse security assessment made by the Director-General of Security relating to people-smuggling activities. The security assessment was upheld and the proceedings dismissed.

— Lee & Gropler v Commonwealth – the Full Federal Court dismissed an appeal from the summary dismissal of a claim that provisions of the Water Act 2007 were invalid as contrary to various constitutional provisions incl ss 51(xxxi), 92, 99, 100. AGS acted for the Commonwealth.

— Albrecht v Commissioner of Taxation – the Full Federal Court allowed an appeal in part. AGS acted for the Commissioner of Taxation.

— ACMA v Today FM – the High Court overturned a previous ruling by the Full Court of the Federal Court of Australia in favour of the radio station, and confirmed ACMA’s power to make a finding that Today FM breached a condition of its licence by recording and then broadcasting, without consent, a prank telephone call to King Edward VII’s Hospital in London in December 2012. AGS acted for ACMA and the Commonwealth Attorney-General, intervening.

— Hoxton Park v Liverpool City Council – the Supreme Court dismissed the plaintiff’s claim and upheld the validity of Commonwealth funding of the Malek Fahd Islamic School in Sydney. AGS acted for the fifth defendant, the Commonwealth.

— represented the Minister for Immigration and Border Protection and the Commonwealth before the High Court in CPCF v Minister for Immigration and Border Protection [2015] HCA 1, successfully defending proceedings brought against

the Minister and the Commonwealth in relation to their attempt to return 157 potential illegal immigrants from a suspected illegal entry vessel to India.

— CEPU v Queensland Rail – the High Court unanimously held that Queensland Rail was a trading corporation within s 51(xx) of the Constitution and subject to the Fair Work Act 2009. AGS acted for the Commonwealth Attorney-General, intervening.

— Queensland Nickel v Commonwealth – the High Court unanimously held that the Clean Energy Act 2011 and the Clean Energy Regulations 2011 validly applied to the plaintiff’s production of nickel and did not give rise to preference contrary to s 99 of the Constitution. AGS acted for the Commonwealth as defendant.

— Duncan v NSW; NuCoal v NSW; Cascade Coal v NSW – the High Court unanimously rejected a challenge to the validity of NSW legislation which cancelled certain mining exploration licences following a series of reports by the NSW Independent Commission Against Corruption (ICAC) into the granting of the licences. The Court held that the legislation did not involve an exercise of judicial power. AGS acted for the Commonwealth Attorney-General, intervening.

— McCloy v NSW – High Court, heard on 10–11 June 2015. Concerns the validity of NSW laws providing for a cap on political donations and prohibiting donations by property developers (relates to the implied freedom of political communication). AGS acts for the Commonwealth Attorney-General, intervening.

In other non-constitutional litigation, AGS:

— represented the Minister for Immigration and Border Protection in High Court proceedings Plaintiff S4/2014 v Minister for Immigration and Border Protection concerning the validity of visas granted by the Minister exercising a personal non-compellable power

— acted for the Minister for Immigration and Border Protection in High Court proceedings Plaintiff S297/2013 v Minister


AGS at work

John Scala Garth Cooke Paul Lang

Medibank Private Initial Public Offer The Medibank Private Initial Public Offer (IPO) was the second largest in Australian financial history and the third largest in the world in 2014, raising approximately $5.8 billion.

Scoping study and sale processAGS acted as the legal process and probity adviser for a Scoping Study examining possible options for the privatisation of Medibank Private, and following the Government’s decision to then proceed with an Initial Public Offer (IPO) for Medibank Private, we were re-engaged by the Department of Finance to undertake the same role on the sale process.

Over a 12-month period the AGS team provided legal process and probity advice for the conduct of the IPO process which culminated in the successful listing of Medibank Private on the ASX in December 2014.

In addition to putting in place a comprehensive and overarching probity framework for the IPO and conducting numerous probity briefings, AGS lawyers advised on Finance adviser procurements; helped design and implement restrictions on participation in the IPO by Commonwealth officers, ministers and their staff, advisers and Medibank personnel; reviewed proposed selling syndicate arrangements including rules of engagement for the retail selling syndicate; advised on conflict, confidentiality and compliance issues, reviewed and advised on proposed ‘Chinese wall’ arrangements in use by selling syndicate members; and advised on the conduct of the institutional book-build and allocation process and final pricing and share allocations. Our lawyers also took part in all Sale Steering Committee meetings and Chaired the Process Review Committee for the IPO.

Our legal team on work relating to the privatisation of Medibank was led by Chief Counsel Commercial John Scala and Garth Cooke as deputy team leader. Other key members of the team were Deputy General Counsel Commercial Paul Lang, Senior Executive Lawyer Clare Derix, Senior Lawyers Kate Brophy and Stuart Hilton, Lawyer Brett Gulley, Senior Legal Assistant Tanya Ferrari and Legal Assistant Michelle Eames.

‘Equity market deal of the year’AGS won the ‘Equity market deal of the year’ category in the Australasian Law Awards 2015, presented on Thursday 21 May. The award, which covers a number of firms including AGS, is for their work on the Medibank Private IPO. AGS acted as the Commonwealth’s probity advisers on the transaction.

In commenting on the nomination, John Scala said:‘This recognition from our peers is appreciated by the whole AGS team and reflects the hard work and dedication of the whole team.’

Garth Cooke accepted the award on behalf of AGS and said:‘For AGS to be recognised for our role on the equity deal of the year is immensely satisfying for all of us who worked so hard on the project through all of 2014. It also shines a light on the significance of the work done by AGS Commercial and the skills and dedication of our lawyers and support staff.’

Clare Derix Kate Brophy Stuart Hilton Brett Gulley


for Immigration and Border Protection concerning the validity of a decision made personally by the Minister to refuse to grant the plaintiff a permanent protection visa relying on the national interest criterion

— successfully defended the Australian Competition and Consumer Commission (ACCC) in a Federal Court challenge brought by Moses and Paul Obeid to the validity of compulsory notices issued by the ACCC. The notices were issued as part of an investigation into potential contraventions of the Competition and Consumer Act, following the NSW ICAC’s investigation into allegations of corrupt activities relating to the grant of certain coal exploration licences.

— acted for Comcover in a claim by Julian Moti QC for compensation relating to his unlawful deportation from the Solomon Islands

— represented the Minister for Immigration and Border Protection in a cohort of matters, including Full Federal Court appeals, arising from the disclosure of personal information of people in immigration detention on a particular date on the Department of Immigration and Border Protection’s website

— represented the Minister for the Environment at a Full Federal Court appeal by the Tarkine National Coalition of a decision by the Tasmanian Government’s assessment of a project to develop a direct shipping of ore hematite mined in Tasmania

— acted for the Minister for the Environment in the Alliance to Save Hinchinbrook v Minister for the Environment seeking judicial review of decisions relating to proposed dredging and dredge spoil reuse at the Port of Abbot Point in North Queensland, which was resolved by consent

— represented the Minister for the Environment in Mackay Conservation Group v Minister for the Environment, seeking judicial review of a decision to approve the construction by Adani Mining

Ltd of a coal mine in the Bowen Basin, North Queensland, also resolved by consent

— represented the CEO of the Australian Sports Anti-Doping Agency (ASADA) before the Federal Court (and on appeal to the full Federal Court) in a challenge to the lawfulness of ASADA’s investigation into the Essendon Football Club. Both the trial judge and the Full Court dismissed the claims brought by Essendon and its coach. The Full Court held that ASADA’s investigation, in cooperation with the AFL, was authorised by the ASADA Act, the ASADA Regulations and the NAD Scheme.

— acted for the Commonwealth intervening in civil penalty proceedings to put a whole-of-government position to the Full Federal Court in FWBII v CFMEU. The Full Court found against the Commonwealth’s position that the High Court’s decision in Barbaro v the Queen did not preclude parties from making submissions to the Court as to appropriate penalty amounts, including joint submissions, in civil penalty matters. Special leave has been granted.

— succeeded in setting aside broad discovery orders in CSP v Commonwealth, a claim for damages, and saved the Commonwealth from many years’ work that would have otherwise been required to locate and discover documents

— succeeded in obtaining public interest immunity and non-publication orders for the Commissioner of the AFP in proceedings relating to the retrial of David Eastman for the murder of Assistant Commissioner Winchester

— acted for the Attorney-General in an application seeking orders to protect national security information in a criminal proceeding in the ACT Supreme Court against a former Commonwealth official who pleaded guilty to fraud offences

— acted for the Australian Crime Commission (ACC) in a hearing for contempt where the respondent sought to rely on post-traumatic stress disorder to


avoid liability for giving false or misleading evidence at an examination before the ACC.

LEGISLATION, POLICY AND PROGRAM DELIVERYAGS advised the Government on a range of policy, program and legislative development matters. They included:

— the level of constitutional risk attached to Commonwealth agencies’ spending programs and new policy proposals in light of the High Court’s decision in Williams No. 2

— the proposed foreign fighters legislation

— constitutional recognition of Indigenous Australians and the Government’s proposal to hold a referendum on that issue

— application of the PGPA Act

— the abolition of Norfolk Island self-government

— constitutional support for the proposed introduction of data retention obligations on telecommunications service providers and the privacy impacts of such obligations

— the constitutional validity of proposed amendments to allow the use in proceeds-of-crime proceedings of material obtained in ACC examinations

— the sale of Medibank Private

— the new western Sydney airport

— the Department of Foreign Affairs and Trade’s new travel document issuance system and International Communications Network

— G20 preparations

— major Defence/Defence Materiel Organisation projects, including Land400, Land53, Land2110, SEA1000, the sale of Australian-developed counter-IED units to Afghanistan and the development of a military sales process to support sales of Australian-developed defence items to the US

— concessional loans to farming businesses

— Reserve Bank construction projects

— national energy market reform agenda

— Bureau of Meteorology procurements for the ‘super computer’ and a new data centre

— ICT procurements for CrimTrac and the Australian Electoral Commission

— the wind up of the Albury–Wodonga Corporation

— establishment of the Global Infrastructure Hub – a G20 initiative

— the Prohibition on Incitement of Hatred Bill 2015

— the international exchange of information relating to the tax affairs of multinational entities

— amendments to the Australian Crime Commission Act 2002.

LEGAL SERVICES DIRECTIONSOur success in assisting our clients to comply with the LSDs is measured by the number of breach findings in matters where we act. During the year, there was no finding of an LSD breach involving AGS.


AGS at work

ASADA – matters involving Essendon Football ClubDuring 2014–15, AGS supported the Australian Sports Anti-Doping Authority (ASADA) in cases brought against them by Australian Football League (AFL) club Essendon and coach James Hird. An extraordinary amount of media coverage was devoted to these matters, including the televised broadcast of parts of proceedings.

In August 2014, the highly publicised case brought by Essendon and Mr James Hird against ASADA was heard by Justice John Middleton in the Federal Court. Supported by a large AGS team led by Senior Executive Lawyer Craig Rawson, AGS’s Chief Counsel Dispute Resolution Tom Howe PSM QC acted as lead counsel for ASADA. During preparation for the trial AGS managed an expedited discovery process which saw AGS process approximately 9,000 documents in 33 days.

On Friday 19 September 2014, Justice Middleton delivered his finding in favour of our client – that ASADA’s investigation into Essendon Football Club’s 2012 supplements program was lawful. Essendon Football Club and Mr Hird were ordered to pay ASADA’s costs.

The appealMr Hird subsequently appealed to the Full Federal Court. Essendon chose not to appeal. AGS also acted on behalf of ASADA in this matter.

Appeal proceedings were expedited to minimise uncertainty around ASADA’s joint investigation with the AFL, to curtail the potential for unfair damage to Mr Hird’s reputation, and to take into account the welfare of Essendon players facing allegations of doping.

The primary basis of the appeal was that Justice Middleton had erred in finding that the CEO of ASADA had acted lawfully in conducting a joint investigation with the AFL. Mr Hird contended that ASADA had unlawfully acquired information in reliance on the AFL’s contractual powers with the players. Mr Hird sought (amongst other relief) a permanent injunction restraining the CEO of ASADA from using any information obtained in its investigation through cooperation with the AFL, and an order staying the operation of show-cause notices issued to the players of possible non-presence anti-doping rule violations.

Laura Deschamps-FerrariDejan Lukic Christopher McDermott

Craig Rawson Kim Bennett Justin Davidson Cherie CanningTom Howe PSM QC

Melissa Gangemi

On 30 January 2015, the Full Court (Kenny, Besanko and White JJ) handed down judgment, dismissing the appeal. Mr Hird was ordered to pay ASADA’s costs.

AGS also acted on behalf of ASADA’s CEO in proceedings before the AFL Tribunal, and continues to act in subsequent proceedings before the AFL Appeals Board.

AGS team members AGS lawyers involved in the various proceedings (in addition to Tom Howe PSM QC and Craig Rawson) included Special Counsel Dispute Resolution Kim Bennett, Senior Executive Lawyer Justin Davidson, and Senior Lawyers Cherie Canning, Melissa Gangemi, Christopher McDermott, Dejan Lukic and Laura Deschamps-Ferrari. Outstanding support was provided to the lawyers by Senior Legal Assistant Catherine Mayne, Legal Assistant Joey Nazzari and Copy Centre Clerk Chris Kallis.



AGS was a GBE until 1 July 2015, operating as a fully competitive and commercial legal services provider, tasked to achieve a commercial rate of return and pay agreed dividends to shareholder Ministers on behalf of the Commonwealth. In the 16 years AGS was a GBE, we made profits (before tax) of $173 million, and made payments to the Commonwealth of $262 million, covering dividends, taxation, competitive neutrality and loans.

KEY RESULTSIn 2014–15 AGS achieved:

— trading revenue of $120.2 million, $3.4 million above the corporate plan target

— profit including interest of $10 million – almost double the corporate plan target

— savings in corporate areas, coming in under budget by $1.7 million

— good or better performance trends against all corporate plan performance measures.

MARKET TRENDSFor the past 16 years AGS has functioned successfully as a self-funded, commercial operation within a highly-contestable market. Our competitors include top-tier private law firms and the private bar. Despite increased competition, our share of the market for external legal services has remained steady for a number of years – but recently increased to more than 41%.

In 2014–15, we continued to hold a strong position in the market. Our client survey showed 96% of clients were satisfied with our performance, and revenues and trading profits exceeded our annual target. Competition was intense and we anticipate this will continue after we consolidate with AGD and during the course of the Secretary’s review of government legal services.

The private sector responds aggressively to changes in the government legal services market, and we expect considerable challenges in maintaining our current work and revenue levels. Threats to our revenues are threats to our ability to provide the best support to our clients and the Government generally. It is important that we remain competitive, client-focused, efficient and effective in winning business.

Our key strategies are to:

— respond strongly to bids and other business-winning opportunities with effective pricing strategies

— actively market AGS legal services, along with other aspects of our business, including professional development courses for in-house legal teams and publications

— continue to emphasise within AGS the need to deliver outstanding client service and build client loyalty

— continue to convey the ‘business-as-usual’ message in meetings and other communications with clients.

Operating as a government business enterprise


MEASURING OUR PERFORMANCEAGS had 5 performance measures (financial and non-financial) for the reporting period. We achieved good or better performance results in all measures.

Scorecard of AGS performance

Performance measure 2014–15

1. Financial performance l

2. Business efficiency l

3. Leverage / solvency l

4. Customers and stakeholders l

5. Staff l

Code l good or better performance or trends

l satisfactory performance or trends (including revenue within 3% of corporate plan target)

l unsatisfactory performance or trends

FINANCIAL OUTCOMES The financial result for 2014–15 was very positive, given difficult trading conditions and uncertainties about AGS’s future in the first half of the year.

— Our trading revenue $120.2 million was $3.4 million above the plan target.

— Our profit including interest was $10 million – almost double the corporate plan target.

— We exceeded our corporate plan trading profit target by $4.6 million.

— We made savings in corporate areas, coming in under budget by $1.7 million.

— We achieved a return on equity of 0.7% for the fiscal year following the $6.6 million write-off of the deferred tax asset (21.6% return before write-off). This is well ahead of the corporate plan target of 12.3%.

— We paid/declared dividends during the year of $10.2 million (including a $9.5 million special dividend).

Scorecard of AGS financial performance

Performance measure 2014–15

Revenue from legal service trading $120.2m

Total shareholder return 1.4%

Dividends paid/declared $10.2m

Legal service earnings before interest and tax (EBIT)

$8.6m

Profit from legal service trading before interest, tax, depreciation and amortisation (EBITDA)

$12.6m

Debtor and WIP days 85


AGS at work

In-house counsel workAGS’s in-house counsel practice provides a highly-valued service representing clients before commissions, enquiries, courts and tribunals.

AGS Dispute Resolution’s advocacy practice is led by Chief Counsel Dispute Resolution Tom Howe PSM QC and comprises specialist counsel and lawyers appearing as solicitor advocates.

Clients choose in-house advocates because:• theyarespecialistsinareasoflawandpracticerelevanttoCommonwealthclients• theyarefamiliarwiththeneedsofCommonwealthclients,includingspecialrequirements

such as model litigant obligations• somearebothadvocateandsolicitor,bringingtheircloseinvolvementinmatterpreparation

to the hearing and their familiarity with related proceedings for that client• AGSadvocatesandsolicitorsworktogethercloselytoobtainthebestoutcomeforclients.

Examples of work by AGS in-house counsel in 2014–15 include:

National security Senior Executive Lawyers Tim Begbie and Andrew Berger, and Senior Lawyer Peter Melican appeared for the Australian Security Intelligence Organisation and the Department of Foreign Affairs and Trade before the Administrative Appeals Tribunal (AAT) and Federal Court in challenges to adverse security assessments and decisions to refuse or cancel passports on security grounds. These cases involved security assessments relating to acts of politically motivated violence and people smuggling. Andrew Berger also appeared for the Australian Federal Police (AFP) on several occasions to obtain control orders against a number of individuals, to substantially assist in preventing terrorism acts in Australia.

Administrative law AGS advocates appeared in matters nationally before the AAT and Federal Court to defend challenges to administrative decisions in a variety of contexts (FOI and Archives Act matters before the AAT and in appeals before the Federal Court). This work was undertaken by a broad group of lawyers including Tom Howe PSM QC, Senior Executive Lawyers Andrew Berger,

Tim Begbie Peter Melican

Andrew Dillon

Tom Howe PSM QC

Peter Macliver Justin Davidson Andras MarkusDamien O’Donovan

Andrew Berger


Tim Begbie and Andrew Dillon, Senior General Counsel Dispute Resolution Damien O’Donovan, Senior General Counsel Dispute Resolution Peter Macliver, Special Counsel Dispute Resolution Andras Markus, Senior Executive Lawyers Justin Davidson and Justin Hyland, and Senior Lawyer Andrew Schatz. They appeared in important cases raising complex questions of statutory and regulatory interpretation.

Advocacy at Royal Commissions and international foraTom Howe PSM QC and Damien O’Donovan appeared as counsel for the Commonwealth in the Royal Commission into the Commonwealth’s Home Insulation Program.

Damien O’Donovan appeared for the Commonwealth in World Trade Organization proceedings brought by the Dominican Republic, Honduras, Indonesia and Cuba against Australia, alleging that Australia’s tobacco plain packaging legislation involves a breach of a number of Australia’s international treaty obligations.

High profile matters Tom Howe PSM QC appeared as senior counsel in high-profile expedited trial and appeal proceedings before a single judge and Full Federal Court (respectively) concerning challenges to the Australian Sports Anti-Doping Authority’s conduct of a joint investigation with the Australian Football League into the alleged use of banned substances. This matter is discussed in a dedicated case study on pages 16 and 17.

In DPP (Cth) v Galloway (a pseudonym) & Ors [2014] VSCA 272 Peter Melican of AGS, with senior counsel from the Victorian Bar, advised and appeared for the AFP on a novel issue involving legal professional privilege in a sensitive criminal prosecution. The outcome was a favourable decision in the Victorian Court of Appeal, which preserved the AFP’s ability to claim legal professional privilege in such proceedings.

Available for instruction by legal firms for Commonwealth clients irrespective of AGS’s involvement in a matter as solicitorAGS counsel are available for briefing by private firms undertaking Commonwealth work. By way of example, since 2012 Tom Howe PSM QC has represented the Department of Health and Ageing (instructed by Corrs Chambers Westgarth) to act for the Commonwealth in several matters principally concerned with the ability of the Commonwealth to recover certain moneys paid by it under schemes for pharmaceutical benefits, pursuant to the ‘usual undertakings as to damages’ offered by originator companies when interlocutory injunctions are obtained to restrain generic products from entering the market. Tom Howe, Andrew Berger and Andrew Dillon were also regularly briefed by private law firms acting for Comcare and statutory licensees under the Safety, Rehabilitation & Compensation Act 1988.

Andrew SchatzJustin Hyland



AGS CORPORATE PLAN 2014–15

AGS aims to be:

— integral and critical to the role of the Attorney-General as First Law Officer

— the first-choice legal service provider to government

— an expert, reliable and flexible legal adviser meeting client needs.

This year, we delivered our corporate aims through strategic activities in 4 key areas, outlined in our corporate plan:

— Our clients

— Our practice

— Our people

— Our business.

Our clients STRATEGIC FOCUS FOR 2014–15

— demonstrating in everything we do that we understand their needs and challenges

— being cost-conscious and highly competitive

— being innovative in our service delivery.

KEY OUTCOMESIn 2014–15 AGS:

— achieved a 96% satisfaction rating in our annual client survey – (see page 26 for a case study on our client survey and client service programs)

— kept clients informed and maintained confidence in our business following the announcement of consolidation with AGD

— continued to improve cost-control measures for clients

— added value to our legal services through publications, training programs, events, forums and in-house support.

UNDERSTANDING CLIENT NEEDS AND CHALLENGES

ConsolidationFollowing the announcement in December that AGS and AGD would consolidate from 1 July 2015, we turned our focus to actively communicating with clients to reassure them that the decision would not affect AGS’s provision of government legal services.

Outcomes against our corporate plan


We provided regular information and updates about the process and its implications, and established avenues for clients to voice concerns and receive answers. Immediately following the announcement, AGS CEO Ian Govey wrote to heads of agencies informing them of the change and Client Service Managers spoke directly to their client contacts, to assure them that AGS was operating on a business-as-usual basis. This was reinforced with clients face-to-face through a series of back-to-work functions in each State in February and through various CEO meetings, lunches and other events. We also released new communications materials promoting our services and professional development programs, and increased the number and distribution of our publications.

We gave clients an opportunity to raise issues about consolidation as part of our annual Client Survey in March (see page 26). The key concerns raised were about possible reduction in AGS’s independence from government and/or AGS’s ability to provide independent legal advice, potential reduction in service levels from AGS, and potential loss of key AGS people and/or expertise and capability. We took all opportunities to address these concerns by further increasing our communications and client contact. In addition to our back-to-work events, and in conjunction with AGD, we held events for General Counsel and other client representatives in various States in May. Both Ian Govey and AGD Deputy Secretary David Fredericks spoke at these to reinforce the message that clients would experience very little, if any, change following consolidation.

We also developed a Confidentiality Protocol with AGD to ensure the existing client confidentiality obligations of AGS continue. In addition, the Judiciary Amendment Act 2015 ensures AGD is exempt from the Freedom of Information Act for documents relating to AGS’s legal activities.

BEING COST-CONSCIOUS AND HIGHLY COMPETITIVEContinuously improving cost-estimating skills is an important task for AGS practice groups, supported by regular learning and development activities. This year we provided core skills training in estimating for support staff, and an AGS Seminar Series session ‘Stop, think, act, manage’ – with tips for successful financial management for lawyers.

Throughout the year we offered clients alternative pricing arrangements for major projects, involving a mix of daily rates, outposts, inposts and ‘standard’ hourly rates. We also continued to identify efficiencies in high-volume, fixed-fee portfolios.

Consolidation will bring some benefits in pricing for clients, following the decision that work that is ‘tied’ under the LSDs, as well as the provision of outposted AGS lawyers, will be delivered on a cost-recovery rather than a commercial basis from 1 July. Details of arrangements under this decision were formalised and communicated to clients.

INNOVATIVE SERVICE DELIVERY

AGS provides innovative services through our publications, training programs, events, forums and in-house support. Our programs (often offered as ‘value-add’ services) help maintain high standards of practice in government law generally and provide valuable contact and relationship development between AGS and client teams.

This year had a focus on guiding clients through changing legislation and agency functions. In the second half of the year, following the announcement of consolidation with AGD, we increased the number of publications and events, to support our messaging of business-as-usual and to keep our profile high. New communication products were developed to promote our services and reinforce our brand. As part of increased efforts to reinforce the ‘business-as-usual’ message to clients, we also produced a new AGS promotional pack. These were distributed at all AGS events and training courses.

PublicationsWe produce a range of publications to assist clients, other Australian Government lawyers, researchers, academics, students and the public. They include:

— Express law – a subscription email service that provides quick legal updates

— Commercial notes – a newsletter to keep readers informed on significant developments in commercial law

— Legal briefing – a newsletter on significant legal developments

— Litigation notes – a newsletter on current and developing litigation in key cases in Australia

— Last week in Parliament – an email publication summarising key events in the Commonwealth Parliament in the previous week and includes links to the most significant documents

— fact sheets on key areas of law applying to Australian Government agencies.

For a full list of publications, courses and forums, see the appendix on page 86.

Training and forumsOur professional development opportunities foster skills and knowledge in the APS of the legal issues affecting policy, programs and government law generally. They also provide valuable contact between AGS and clients’ in-house legal teams.

Our 2014–15 courses and forums were well attended – particularly those concerning the PGPA Act, the Public Interest Disclosure Act 2013 (PID Act) and employment law issues. Throughout the year we held 75 general training courses, open to all government employees, and approximately 70 client-specific courses to meet particular needs of individual agencies.

Highlights of our forums and Government Law Group sessions are included in a case study on page 29 and a full list is at the appendix on page 86.

OutpostsAGS also continued to gain valuable contact with client in-house teams and provide quality, innovative service through our outpost practice. Client demand for this service increased again this year – in the first quarter, we outposted 59 lawyers with 22 clients, and by the end of 2014–15 there were 77 lawyers outposted with 29 clients (an increase of approximately 7 lawyers for the same time the previous year).

A significant number of AGS outposts have been the equivalent of Head of Legal or General Counsel, reflecting AGS’s importance as an in-house adviser. Our outposted lawyers have worked on some of the Government’s most challenging matters, including major legislative development, commercial and litigation matters.

Corporate Commonwealth Entities Legal NetworkThe CAC Act Legal Network was formed in 2011 to foster interaction between General Counsel and senior lawyers in bodies established under the Commonwealth Authorities and Companies Act 1997. It was renamed the Corporate Commonwealth Entities Legal Network (CCELN) following the enactment of the PGPA Act. The network currently has 120 members from 55 Corporate Commonwealth Entities (CCEs) and Commonwealth Companies located around Australia.

This year, AGS held CCELN forums in Canberra, Sydney and Melbourne. The first, in Canberra in July 2014, attracted more than 40 General Counsel and Senior Lawyers from over 30 CCEs. The main topics were the PGPA Act, the PID Act, IT contracting and legal issues arising in revenue-raising activities by CCEs. In December 2014, AGS and CSIRO hosted a joint CCELN Forum in Melbourne at CSIRO. Presentations included a PGPA Act update from the Department of Finance, a session by AGS on freedom of information and privacy changes affecting the network entities and the role of General Counsel and in-house lawyers at CSIRO. More than 30 General Counsel and senior lawyers attended from 18 CCEs. In March 2015 our forum in Sydney,



co-hosted by AGS and the ABC at the ABC’s headquarters, attracted 50 network members. Speakers from AGS, the Commonwealth DPP and the ABC gave presentations on the APS Code of Conduct, bribery, corruption and fraud, confidentiality, legal pitfalls in social media and the role of General Counsel at the ABC and the Australia Council respectively.

The network continues to provide an effective platform for raising awareness about legal and legal practice management issues relevant to CCEs and to the Commonwealth as a whole, to foster the sharing of legal experience, expertise and information between entities, and to develop connections and valuable working relationships between General Counsel and senior lawyers across the Commonwealth.

Our practice STRATEGIC FOCUS FOR 2014–18

We will be outstanding in our practice of law by:

— knowing government business inside-out and better than our competitors

— continuously improving our supervision of legal matters.

— continuously developing our legal expertise.

KEY OUTCOMES

In 2014–15 AGS:

— increased its sharing of information, leading to better understanding of clients and their business

— focused on training, leading to development of legal and management expertise.

AGS’s practice groups undertake various activities throughout the year to continuously improve lawyers’ understanding of government business and the law, by sharing knowledge and skills, enhancing supervision and developing legal expertise.

Regular contact between lawyers of different levels and from different practice groups

contributes to our consistency and quality of legal work and client understanding.

This year, practice groups focused on developing networks and systems for sharing information and providing internal training. Forums, Government Law Group sessions, a weekly seminar series and lunchtime seminars were again popular as ways to share learnings and discuss issues. A list of forums and GLGs for the year is at the appendix on page 86.

TrainingOur internal training program ensures staff from all offices have access to a range of courses, including fundamental training in areas such as core legal skills and practice skills.

Core legal skills training covers topics such as conflict of interest, decision-making and review of decisions, dispute resolution and monetary claims, federal jurisdiction, government agreements, legal professional privilege, the LSDs, policy development and the legislative process, privacy and freedom of information, public sector employment and statutory interpretation. The AGS library also offers regular training in research skills.

Senior lawyers and senior executive lawyers can also continue their learning through a non-core legal skills program, including masterclasses, that focuses on specialist or advanced aspects of law. Topics for the program are developed in response to needs identified within practice groups.

In addition, we provide training for lawyers to improve their practice skills. Courses cover advice-writing, plain language, problem resolution, coaching, mentoring, giving feedback, presentation skills, client management and winning and growing business.

As part of our role of ensuring AGS develops quality government lawyers for the future, we also continued to provide peer support and mentoring to graduates. Each year our graduates undertake a rotation schedule of placements across AGS, as well as a client placement to a government agency and pro bono work.


AGS at work

Serving our clientsProviding excellent client service is fundamental to AGS’s operations. Our Client Care Principles are part of the AGS culture. Each year our corporate plan has included activities to enhance staff understanding of client service and improve practical skills to better support our clients. This year we focused on being cost-conscious, accessible, reliable and easy to work with.Operating in a contestable, highly competitive market for the past 15 years has made AGS very client-focused and contributed significantly to our market share and leading position in the external government legal service market. This will continue as we become a self-funded commercial operation within AGD.

The benefits of our client-focused approach were reflected in a 96% client satisfaction rating achieved in this year’s client survey.

We undertake client surveys each year to help us better understand client needs. They give us a regular opportunity to review overall satisfaction levels, ask how our clients rate us in comparison to other service providers, and find out which aspects of our service they are happy with, and in which areas we need to improve.

The survey was run in February, using an online questionnaire. More than 1,370 people from 94 agencies were invited to participate.

The consultants delivered their report in April, with very positive overall findings. Client satisfaction levels were very high, with 96% of respondents indicating they were satisfied with AGS’s performance and 71% giving AGS a rating of 8 or more out of 10. Our performance on 12 of the 13 attributes canvassed improved. The only one which did not improve was ‘provides accurate estimates’, which remained static.

Notably, 43% of respondents considered AGS’s overall performance to be excellent. This compared favourably with our 2013 survey, in which 29% rated us at such a high level. The consultants advised that this was an outstanding result.

In addition, 70% of clients said we understand their business better than our competitors do, with 64% saying we have better quality relationships (largely due to our excellent Client Service Managers). The survey also showed 55% of clients felt our legal expertise was better than our competitors and 41% said we were more cost-conscious than our competitors.

Although the Client Survey was highly positive, it raised some issues that need to be addressed as part of our focus on continuously improving client service. Practice groups and Client Services subsequently carried out detailed analysis of the survey to identify areas for improvement. These are to be considered in the annual business planning process.

The surveys help inform our activities for the coming year. This year we initiated a client listening program, which began with a national training course on managing difficult client conversations. CMA Learning provided the training and their principal consultant addressed the AGS Leaders Conference in October to discuss the topic more broadly with senior staff.

An internal blog by Chief Operating Officer Louise Vardanega gave the program an ongoing profile throughout the year. Other activities included publication of client feedback on the intranet and encouraging staff – including through performance agreements – to have regular contact with clients, to gather feedback and better understand their requirements.


The practice groups are major contributors to the National Practice Orientation program for new starters to AGS. This provides an opportunity for employees meet key AGS professional leaders and executives and establish networks with other colleagues.

Supervision of legal mattersActivities towards enhancing supervision within the practice groups included development of training in matter supervision, consistency of expectations and management of underperformance. A senior practitioner’s group provided assistance to supervisors to increase professionalism and knowledge transfer, and mentoring arrangements were formalised.

Our people STRATEGIC FOCUS FOR 2014–18

We will be a great place for our people to work by:

— heightening the sense of collegiality and networking for which AGS is highly regarded

— improving the career prospects and job satisfaction of our legal support employees.

KEY OUTCOMES

— implemented an AGS-wide mentoring program for junior lawyers

— fostered our culture of leadership across the Senior Executive Lawyer cohort

— implemented the remaining recommendations of the 2013 Legal Support Review.

A shift in objectives was necessary in the second quarter as a result of the decision to consolidate AGS with AGD from 1 July 2015. Despite this, much was progressed and completed in relation to our original objectives.

The scope and range of achievements and outcomes for the year included:

— supporting employees during the consolidation process by providing a range of change assistance initiatives such as tailored professional development programs, information sessions and other relevant support tools

— managing the job evaluation and role description process to transition AGS employment arrangements to the APS

— updating HR policies, procedures and Employment Handbook to reflect APS practices, policies and legislation

— continuing to improve and grow our leadership development programs

— implementing recommendations from the reviews of the Lawyer Development Program (LDP) to provide a comprehensive and relevant program for our early career lawyers

— completing the roll-out of the Legal Support Program that provided a framework for orientation, reporting arrangements, career progression (role descriptions and specialist responsibilities and training and development for our legal support).

CONSOLIDATION

Classification of legal and support rolesConsolidation presented a number of challenges in regard to employment arrangements. A significant amount of work was undertaken to determine APS classifications for all AGS roles prior to 1 July 2015 when AGS employees would transfer to AGD and be employed under the Public Service Act.

Consultation with employees was a key element of the job classification process and included:

— briefing staff across AGS, undertaking a job evaluation survey and consultation through the Employee Council

— aligning jobs with common skills, knowledge and behaviours to identify job families


— developing, reviewing and settling approximately 110 role descriptions based on job families

— AGD engaging Bull and Bear Special Assignments (BBSA) to:

– evaluate AGS’s roles against the APS Work Level Standards

– validate survey information through interviews with staff and managers

– present recommendations on APS classifications for all AGS employees to the AGD Secretary

– advising staff of their classifications including review provisions should staff disagree with their recommended classification.

The job classification process was completed within very tight deadlines. Role descriptions were completed in April, BBSA presented recommendations in May and staff were advised shortly afterwards. Requests for review were considered by the AGD Secretary and staff advised of the outcome in June.

Supporting staff with changeProviding support to our staff, and ensuring they had access to information through multiple channels, guided many of our programs and activities in the lead up to the consolidation. The range of support provided to staff in all AGS offices included:

— delivering ‘Managing change and building resilience’ workshops designed to provide employees with techniques to build and sustain personal and team resilience in times of change

— welcoming AGS staff to AGD and the APS in ‘on-boarding’ information sessions delivered by Rachael Jackson, Assistant Secretary, People Strategy Branch, AGD and Alison Halpin, Acting National Manager, HR Services, AGS

— releasing a series of factsheets which emphasised the key messages delivered in the on-boarding information sessions and provided additional information on employment policies, including health and safety

— highlighting key APS policy issues, such as APS Values and Code of Conduct, recruitment and SES provisions, through a presentation by the APSC to AGS senior managers.

In addition to workshops and information sessions, we:

— developed and implemented 2 introductory eLearning modules to support the AGS Orientation Program – ‘Introduction to AGS’ and ‘Client care’

— undertook a major review of AGS employment policies and delegations to ensure consistency with the Public Service Act and subordinate legislation

— worked collaboratively with AGD People Strategy Branch and the HR Working Group to produce a new edition of the AGS Employment Handbook for 1 July 2015.

Enterprise agreementAGS began negotiations for the renewal of its enterprise agreement (EA 2012) in September 2014, but these were suspended early in 2015 due to the consolidation announcement.

The Judiciary Amendment Act 2015 provided that EA 2012 would continue to apply post-consolidation until a new AGD enterprise agreement is made that covers either all AGS employees or all non-SES employees. AGS guidelines and policies relating to employment conditions, administrative process and other employment-related matters that had effect for the purposes of the EA 2012 on 30 June 2015 would also continue to apply while EA 2012 was in operation.

PROFESSIONAL DEVELOPMENT

Leadership developmentAGS’s leadership group met in Canberra in early November for the annual AGS Leaders Conference. The topic of ‘Keeping in step with our clients’ was addressed in group discussions and supported by keynote speakers’ presentations that focused on identifying major changes facing government agencies now and in the future. Conference participants also participated in training on ‘managing difficult client conversations’.


AGS at work

Building legal knowledge in the APSAGS is widely recognised as the leading provider of training for government lawyers. We offer a comprehensive range of training courses, forums and other events to help clients and the Commonwealth public service generally stay abreast of legal issues.

Our general training events are open to all government employees, while our agency-specific training focuses on the particular operational concerns of individual clients, in locations best suited to their needs.

Some of the topics our courses cover include administrative law, statutory interpretation, the Commonwealth financial framework, constitutional issues in program design, Code of Conduct investigations, decision-making, delegations and authorisations, legal advice-writing, government contracting, freedom of information and privacy.

A feature of our training courses is the use of small-group interactive teaching, where clients are able to ask a lot of questions and do interactive exercises to enhance their learning outcomes. The course presenters are AGS lawyers with a great depth of knowledge of the government environment.

This year we increased our training output and added new courses to our offerings. We delivered courses, forums and Government Law Groups in 60 different subject areas in Canberra and our regional offices. We trained or presented to almost 3,500 participants from various government agencies at approximately 160 sessions.

All the courses and forums were well attended – particularly those concerning the PGPA Act, the Public Interest Disclosure Act 2013 (PID Act) and employment law issues.

Highlights of our forums and Government Law Group sessions included:• the10thannualPropertyandInfrastructureForuminAugust2014,attendedby50clients• theEmploymentLawForuminCanberrainOctober,whichattractedarecordattendanceof182HR

and legal officers from 75 agencies• themigrationclientforuminCanberrainOctober,whichhaditshighesteverattendanceof92people• theAdministrativeLawForuminCanberrainNovember,attendedby158AGSclientsfrom27agencies.

Justice Debbie Mortimer of the Federal Court opened the forum and Judge Jeffrey Sutton of the US Court of Appeal gave the keynote address.

• anFOIpractitionerforuminMelbourneinNovemberhad32attendees,andoneinCanberrainDecember had 103 attendees

• ourfirstInformationTechnologyForumwasheldinFebruary,withthetopic‘Cloud,contractsandconsequences’. Places sold out, with 36 client agencies represented among the 98 attendees.

• TomHowePSMQCandCraigRawsonpresentedaGovernmentLawGroupseminarinCanberrainMay about the long-running ASADA investigation of the Essendon supplements program – more than 150 clients attended

• AGSCommercialandtheDepartmentofFinancepresentedaGovernmentLawGroupseminaronCommonwealth indemnities to around 180 clients in Canberra in May.

All our training and forums meet the requirements for Continuing Professional Development (CPD) or Continuing Legal Education (CLE) points. For a full list of forums and Government Law Group sessions, see the appendix on page 86.


Continuing to provide leadership development activities and programs to AGS remains the foundation of our people development strategy. This year we:

— delivered ‘Introduction to people supervision’ for Senior Lawyers and corporate group supervisors (including a pilot at the annual Legal Support Managers Conference)

— continued our Leadership Series lunches for senior managers. A highlight of the series was the Australian Public Service Commissioner, the Hon John Lloyd PSM, presentation on ‘Perspectives on the current priorities and challenges in the APS’.

— scoped and developed professional supervision and client engagement programs

— provided training for LDP lawyers and their supervisors in performance appraisals including a series of workshops ‘Getting the most out of performance reviews’.

Lawyer development programThe program was refreshed this year and now provides a comprehensive learning framework underpinned by the AGS performance management process which aims to develop lawyers in the Lawyer classification with the capabilities required of a Senior Lawyer.

Legal support programThe roll-out of the Legal Support Program was completed in July 2014. Legal Support Managers conducted briefing sessions for legal support staff and outlined the improvements that were introduced, including new roles and responsibilities within existing legal support structure, national legal support orientation program and training and development.

Graduate and clerk programsApplications for AGS’s graduate program continue to increase each year. Over 700 applications were received for the 2016 graduate program. This year short-listed applicants undertook a deductive reasoning test from which 40 applicants were invited for interview. First-round offers were accepted for 17 graduate positions (including 2 Indigenous positions) for the 2016 graduate program.

The winter clerk program received extremely positive feedback from AGS supervisors and clerks. This year, 12 clerks, including an Indigenous student, participated in the program.

AGS Alumni Our alumni program, established in 2012 to keep AGS in touch with former employees, continued successfully with events in Adelaide, Brisbane, Canberra, Hobart, Melbourne and Sydney. Issues of the Alumni newsletter were distributed to members in November 2014 and April 2015.

The alumni program provides an opportunity to enhance contact and friendships with former colleagues, develop useful business networks, foster career development and mentoring, and promote AGS’s profile within the legal profession. At the end of the year the program had 926 members.


Full-time equivalent changes

Lawyers and Graduates

Senior Lawyers

Senior Executive Lawyers

Legal Support and

ParalegalsCorporate Support AGS

1 July 2014 106.2 111.1 112.3 119.8 140.2 589.630 June 2015 78.2 130.3 112.7 138.6 133.2 593.0

Notes: FTEs refer to ongoing term and casual employees but not contractors. Excludes winter clerks.

Employee turnover

Level 2013–14 2014–15Lawyer/Graduate 14% 14%

Senior Lawyer 8% 2%

Senior Executive Lawyer 3% 2%

Legal Support and Paralegal 11% 10%

Corporate Support 5% 8%

AGS 8% 7%

Note: Turnover refers to resignations and retirements for ongoing employees.

Lawyer stability % at 30 June 2014

% at 30 June 2015

Ongoing lawyers >3 years at AGS

80% 77%

Personal leave2013–14 2014–15

Average days taken per employee

10.8 10.5

Note: Includes ongoing and term employees but not casual employees.

% Female and male at 30 June 2015

Female MaleLawyer/Graduate 70% 30%

Senior Lawyer 66% 34%

Senior Executive Lawyer 48% 52%

Legal Support and Paralegals

94% 6%

Corporate Support 64% 36%AGS 70% 30%

Note: Includes ongoing, term and casual employees.

% Part-time and full-time at 30 June 2015

Part-time Full-timeLawyer/Graduate 4% 96%

Senior Lawyer 29% 71%

Senior Executive Lawyer

26% 74%

Legal Support and Paralegals

17% 83%

Corporate Support 21% 79%AGS 21% 79%

Note: Includes ongoing and term employees.

WORKFORCE PROFILE


SavingsKey outcomes for the financial year included:

— 5% reduction of corporate employees. This builds on the 8.7% reduction in 2013–14

— 17% increase in Senior Lawyers with a corresponding 26% decrease in Lawyers. These figures reflect our career and succession planning which supports our approach of promoting junior lawyers. Our Lawyer numbers will increase in 2016 with the commencement of 17 graduates.

— 7% turnover which is 1% lower than the previous year.

In addition, Financial Services continued to centralise and automate business processes and were able to achieve significant staff savings.

Employee surveyAGS consulted extensively with staff as part of AGS’s consolidation with AGD. As a result, AGS decided not to conduct a staff survey in 2015.

Work health and safety AGS continues to have low levels of health and safety hazards and incidents. Nine workplace incidents were reported during the year, most of them minor in nature with no time lost. Two incidents resulted in workers’ compensation claims and no incidents required notification to Comcare.

During 2014–15, we continued with training and information on mental health in the workplace, in addition to ergonomic training and sharing information across the national practice.

A key focus during the year was emergency procedures. In addition to standard and refresher training, national videoconferences were held with first aiders, emergency wardens and Health and Safety Representatives. Offices reviewed their emergency evacuation planning and practices.

Our business STRATEGIC FOCUS FOR 2014–18We will be first rate in our business practices by:

— being current and efficient in our technology

— being resourceful and managing costs.

KEY OUTCOMESIn 2014–15 AGS:

— delivered or progressed new technology projects aimed at increasing productivity

— implemented measures to meet Commonwealth security requirements and improve communications.

BUSINESS SYSTEMS IMPROVEMENTSSupporting the business practices of a commercial legal operation requires up-to-date specialised information technology systems and technical support. This year we undertook several projects focused on providing better tools and minimising interruptions to services to support and improve the productivity of our legal staff.

Document management systemLast year AGS contracted with Trinogy Systems to implement the WorkSite product to replace the existing document management system. WorkSite is designed for legal practices and is used by 78% of the top 200 law firms. Following contract execution in September, the project team set up the development environment and consulted with users on detailed requirements.

As part of the preparations, we replaced all of our storage equipment, upgraded our email server environment and upgraded the equipment in our test environment. The new test environment allowed for more robust testing for general desktop updates.

The move to WorkSite involved the migration of approximately 12 million documents.


Stage 1 of the system went live in April 2015 as per the original schedule agreed last year, and was delivered on budget. Since that time, AGS staff have added more than 1 million new items to WorkSite. During 2015–16, we will implement Stage 2 which will include improvements to records management, mobility and scanning.

Practice management systemIn 2014, AGS began a project to implement a new practice management system, known as Elite, which would automate many processes through electronic workflow and approval and enable more flexible reporting for our clients. Work progressed throughout the year to set up the system in preparation for go-live. By the end of 2014–15, the project was on schedule for rollout in the first half of 2015–16. It is anticipated that Elite will reduce the administrative burden arising from providing legal services and client requirements, thereby better equipping AGS to meet client requests for pricing and other information, and reducing our overheads.

Other projectsOther information technology and communications projects this year included:

— delivering measures required under Commonwealth security policy to address the most common threats to IT security in government agencies. We estimate that various levels of our security infrastructure successfully resisted over 25 million attacks and incidents (other than SPAM) in the space of 3 months.

— installing video conferencing in our offices, with positive feedback from staff.


AGS at work

Jenny Burnett Leah Edwards

Kathryn Graham

Guy Aitken

Donna Allen Lisa RedmanKim PhamHelen Chisholm

Greg Prutej

One-Stop Shop to improve approval processDuring the year, AGS advised the Department of the Environment on the One-Stop Shop for environmental approvals.

This initiative is an important government priority in the Environment portfolio. It is expected to result in regulatory savings to business of around $426 million a year, by reducing costs associated with delays to project approvals and administration.

The One-Stop Shop will accredit State and Territory planning systems under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) to create a single environmental assessment and approval process for nationally protected matters. The Commonwealth government already has bilateral agreements for environmental assessment in place with States and Territories. The One-Stop Shop will involve bilateral agreements for environment approvals, meaning that there is a single approval decision (by the State or Territory) rather than the additional layer of Commonwealth approval.

Significant aspects of AGS’s work included:• assistingwithdevelopmentoftheEPBCAmendment(BilateralAgreementImplementation)

Bill 2014, which would amend the EPBC Act to support the implementation of the One Stop Shop through bilateral agreements

• advisingonaspectsofthedraftbilateralagreements,andtheaccreditationofStateandTerritory planning systems under the EPBC Act

• advisingontheDepartment’sdraftConditionsPolicytoimprovetheefficiencyofexistingbilateral agreements for environmental assessment.

This work was performed by Chief General Counsel Guy Aitken, Deputy General Counsel Jenny Burnett, Senior General Counsel Greg Prutej, Leah Edwards and Kathryn Graham, Counsel Helen Chisholm, Donna Allen, Kim Pham and Lisa Redman.

Work on the One-Stop Shop is continuing.

PART 2accountability

and management



As a government business, AGS differed significantly from private sector law firms in that it operated within a unique legislative and accountability framework.

Through this framework, AGS was accountable for its performance to its shareholder Ministers – the Attorney-General and the Minister for Finance – and, through them, to the Parliament and the Australian community.

LEGISLATIVE FRAMEWORK During 2014–15, AGS’s legislative framework had 3 main elements:

— The Judiciary Act 1903 (as in force on 1 July 2014), which, under s 55J, established AGS as a statutory authority.

– Section 55K set out AGS’s functions. These included providing legal and related services to the Commonwealth to persons and bodies for any purpose for which the Commonwealth has the power to make laws to, and, on request, the States, Territories and Norfolk Island and State, Territory and Norfolk Island persons and bodies.

– Section 55N set out the persons and bodies to whom AGS could provide services in the exercise of its functions.

– The Judiciary Act also specified the rights, duties and obligations of AGS lawyers, provided for the appointment and terms and conditions of AGS’s CEO, set out AGS’s powers and provided a mechanism for setting AGS’s corporate governance requirements.

Corporate governance— The PGPA Act which establishes a

framework for the governance, performance and accountability of Commonwealth entities, as well as the use and management of public resources by the Commonwealth and Commonwealth entities.

– AGS was a corporate Commonwealth entity for the purposes of the PGPA Act. It was also prescribed as a government business enterprise by the Public Governance, Performance and Accountability Rule 2014.

— AGS’s corporate governance arrangements which were issued by AGS’s shareholder Ministers pursuant to s 55ZE of the Judiciary Act. The arrangements set out AGS’s mandate and objectives, complemented and expanded AGS’s reporting and accountability obligations, provided for financial and other governance matters, and established the AGS Advisory Board.

CEOSection 55S of the Judiciary Act established the position of Chief Executive Officer (CEO) of AGS and provided that the CEO was the accountable authority of AGS for the purposes of the PGPA Act with the function of managing AGS.

The CEO was appointed by shareholder Ministers under s 55T of the Judiciary Act and was responsible to them for ensuring that, in delivering legal services:

— AGS is managed in the best interests of the Commonwealth.


— AGS’s business activities are conducted to minimise any risk of divergence of interests between AGS and the Commonwealth

— AGS and its employees maintain the highest standards of integrity, accountability and responsibility.

For 2014–15, the CEO was Ian Govey AM. Mr Govey was appointed CEO in March 2010. Prior to his appointment, he was Deputy Secretary, Civil Justice and Legal Services in the Attorney-General’s Department. He also worked in other senior positions in the Department, as well as at the Australian Embassy in Washington DC and in the Treasury.

EXTERNAL CORPORATE GOVERNANCE

Responsible MinistersFor the reporting period, the Attorney-General was Senator the Hon George Brandis QC. Shareholder responsibility for AGS was exercised jointly by the Attorney-General and the Minister for Finance, Senator the Hon Mathias Cormann.

Ministerial directions Section 55ZE of the Judiciary Act provided for the Attorney-General and the Finance Minister (acting jointly) to inform the CEO of the corporate governance arrangements that were to apply to AGS. In November 2003, shareholder Ministers issued corporate governance arrangements for AGS that continued to apply to AGS during 2014–15.

During 2014–15, no government policy orders were made under s 22 of the PGPA Act specifying government policies that were to apply to AGS.

Significant events Besides the Government’s decision to consolidate AGS with AGD, no significant events in the context of s 19(1) of the PGPA Act occurred during 2014–15. This section required the CEO, as the accountable authority of AGS, to notify the Attorney-General as soon as practicable after the CEO made a significant decision in relation to AGS; to give

the Attorney-General reasonable notice if the CEO became aware of any significant issue that may affect AGS; to notify the Attorney-General as soon as practicable after the CEO became aware of any significant issue that had affected AGS.

Judicial decisions and reviews by outside bodies During 2014–15, no judicial decisions or decisions of administrative tribunals had, or may have had, a significant impact on AGS’s operations; nor were there any reports on the operations of AGS by the Auditor-General (other than the report on the financial statements) or by a parliamentary committee.

AccountabilityUnder the provisions of the PGPA Act and the AGS corporate governance arrangements issued by its shareholder Ministers, AGS was required each year to prepare a corporate plan covering an outlook period of 4 years. The plan set out broad areas of strategic focus, each critical to AGS’s continuing business success and building its future. Under each area of strategic focus, the plan identified a number of specific actions to be undertaken during the first year of the planning period.

Over the course of 2014–15, AGS provided its shareholder Ministers with confidential quarterly progress reports, including financial statements, against the objectives, strategies and actions detailed in the 2014–18 corporate plan.

AGS was also required to prepare an annual statement of corporate intent, which was a high-level summary of AGS’s annual corporate plan. The statement was agreed between shareholder Ministers and AGS and was tabled in Parliament. AGS’s annual financial statements were audited by the Auditor-General for the Commonwealth.

Although AGS did not receive any Budget or other appropriations, AGS could be requested to attend the estimates hearings of the Senate Standing Committee on Legal and Constitutional Affairs for matters associated with AGS’s operations.


AGS ADVISORY BOARD AGS did not have a board of directors but it had an Advisory Board comprising the CEO and 3 to 5 external (non-executive) members who were appointed by the CEO on the nomination of AGS’s shareholder Ministers.

The role of the AGS Advisory Board was to advise the CEO on the strategic development of AGS as a business and on its business performance to ensure that:

— the Commonwealth’s investment in AGS was safeguarded and enhanced

— AGS’s strategic direction was conducive to its long-term success as a government-owned provider of quality legal services to the Australian Government

— AGS met its responsibilities and obligations to shareholder Ministers and effectively communicated with them on its operations and performance.

The non-executive members of the AGS Advisory Board during 2014–15 were:

• Richard Ryan AO (Chair): company director; chair of Editure Ltd and several other boards; former Chancellor Charles Darwin University. (Appointed to Board 15 November 2003. Appointed Chair 1 September 2013)

• Richard Alcock: Managing Director, Investment Banking Group, Merrill Lynch International (Australia) Ltd. (Appointment: 15 August 2011 to 14 August 2014)

• Dymphna (Deej) Eszenyi: practising barrister working predominantly in civil and industrial law. (Appointment: 15 August 2011 to 14 August 2014)

• Sophie Valkan: Former lawyer and experienced CEO and director, corporate advisor and advisory board member at various companies. (Appointed 1 September 2013)

• Kathleen Bailey-Lord: Consultant/ Non-executive Director (Appointed 1 September 2013).

Audit CommitteeAll members of the Advisory Board sat on AGS’s Audit Committee, chaired by Richard Alcock until 14 August 2014 and then Kathleen Bailey-Lord for the remainder of 2014–15.

AGS’s Audit Committee was established in accordance with s 45 of the PGPA Act and AGS’s corporate governance arrangements. The role of the committee was to assist the CEO to discharge responsibilities in relation to AGS’s management and business control framework, audit and financial risk management.

The CEO and Chief Financial Officer had a standing invitation to attend each meeting and representatives of the Australian National Audit Office were invited as observers.

AGS Advisory Board members’ attendance at meetings of the Advisory Board and Audit Committee in 2014–15 is shown in the following table.

Meetings attended by AGS Advisory Board

AGS Advisory Board

4 meetings held

Audit Committee3 meetings

heldRichard Ryan AO 4 3Richard Alcock 0 0Deej Eszenyi 0 0Sophie Valkan 4 3Kathleen Bailey-Lord 4 3Ian Govey AM (CEO)* 4 3

* The CEO was not a member of the Audit Committee but had a standing invitation to attend committee meetings.

Non-executive Advisory Board members were contracted, on a fee-for-service basis, to provide advice to AGS’s CEO. Members’ fees were based on comparable fees recommended by the Remuneration Tribunal. Members were informed of their responsibilities through letters of engagement setting out the terms and conditions of their appointment to the Board.


Parliament

Shareholder MinistersAttorney-General,

Minister for Finance AGS Advisory Board

Advised the CEO on the strategic development of AGS as a business and on its business performance

CEOAssisted the CEO to discharge his responsibilities for AGS’s management and business control framework, audit and financial risk management

Audit Committee

AGS annual report

AGS statement of corporate intent

Senate Estimates hearings

AGS corporate plan

Confidential quarterly reports

Legislative framework:– Judiciary Act

– Public Governance, Performance and Accountability Act

– AGS corporate governance arrangements

Our external corporate governance structure 2014–15

INTERNAL GOVERNANCE COMMITTEESDuring 2014–15, the following internal governance committees advised the CEO on the effective management of AGS:

— Executive Management Committee (EMC) advised the CEO on AGS’s business development and operations, and ensured AGS operated effectively and efficiently as a nationally integrated business.

— Employee Council provided a forum for employee representatives to advise the CEO on AGS employment issues.

RISK MANAGEMENTEach year, under the CEO’s leadership, EMC developed an AGS risk management plan that identified and assessed high-level business risks across AGS. The plan comprised a summary and a series of individual risk management plans for each identified risk which were prepared by senior managers who were members of EMC.

A summary of the plan was included in the AGS corporate plan submitted to shareholder Ministers.

The Audit Committee annually reviewed AGS’s risk management plan, particularly risks associated with financial management.

INDEMNITIES AND INSURANCE PREMIUMS FOR OFFICERS AGS provided an indemnity to the CEO under the terms and conditions of his appointment, indemnifying him against any liability incurred by him in good faith in connection with his duties but excluding any liability or legal costs in respect of which AGS was not permitted to indemnify the CEO pursuant to s 27M of the repealed Commonwealth Authorities and Companies Act 1997.

AGS also provided an indemnity to each non-executive member of the AGS Advisory Board under the terms and conditions of their appointments, indemnifying them against liability to third parties incurred in good faith in connection with their duties and for reasonable legal costs in defending civil proceedings concerning such liability or in defending criminal proceedings in which they are acquitted.


In addition, AGS acquired professional indemnity insurance and other appropriate insurances, including a Directors and Officers Liability and Company Reimbursement policy.

FREEDOM OF INFORMATIONIn accordance with competitive neutrality principles, AGS was exempt from the operation of the Freedom of Information Act 1982. Consequently, AGS was not subject to the Information Publication Scheme at Part II of the Act.

ADVERTISING AND MARKET RESEARCHAGS was not a statutory agency under the Public Service Act 1999 and was therefore not subject to s 311A of the Commonwealth Electoral Act 1918, which requires the annual reports of state, parliamentary departments and statutory agencies to include particulars about their advertising and market research activities.

CEO Ian Govey AM

Chief Operating Officer Louise Vardanega PSM

Office of General CounselNational Group Leader Leo HardimanNational Group Managers Darryl Everett, Simon Blake

Professional Leaders Chief General Counsel Guy Aitken

AGS Dispute ResolutionNational Group Leader Matthew BlunnNational Group Managers Jenny Anderson, Nerida Nelson, Jody Marshall

Professional Leaders Chief Counsel Dispute Resolution TomHowePSMQC Chief Solicitor Dispute Resolution Simon Daley PSM

AGS CommercialNational Group Leader Adrian SnooksNational Group Managers Martin Bruckard, Kenneth Eagle

Professional Leaders Chief Counsel Commercial John ScalaGeneral Counsel Commercial Linda Richardson PSM

Outpost ServicesNational Manager Simon Blake

Library ServicesNational Manager Yvonne Suter

Training ServicesNational Manager Denise Saunders

Pro Bono ServicesNational Manager Geetha Nair

Corporate AdviserPaul Sykes

Regional Office DirectorsSydney Megan Pitt, Melbourne Martin Bruckard, Brisbane Jane Lye, Adelaide Rodger Prince, Perth Peter Macliver, Darwin Mieke Dixon, Hobart David Wilson

Financial ServicesChief Financial Officer Stuart Rankin

Client ServicesDirector Liz Lajos

HR ServicesDirector Doug Cross

IT ServicesNational Manager Graham Fry

Corporate Secretary Daryl Adam

Australian Government Solicitor Organisation chart 30 June 2015


AGS at work

Brett Gulley David Ireland Tony Beal Teresa MiragliaKenneth Eagle

Standard procurement and grants documentation During 2014–15, AGS worked with a range of agencies developing standard contract documentation for procurements and grants.

Senior Executive Lawyer Kenneth Eagle, Lawyer Brett Gulley and Law Graduate David Ireland worked with Department of Finance in developing the Commonwealth Contracting Suite (CCS) – including the development of a deed of standing offer/panel module and associated guidance material. Deputy General Counsel Tony Beal and Senior Executive Lawyer Teresa Miraglia also provided advice on other possible developments for the CCS.

Senior Executive Lawyer Josephine Ziino and Senior Lawyer Jane Muir Cottman worked with the Department of Finance on further developments of the Commonwealth National Lease suite. The suite includes a guidance notes version, transaction version and market version.

AGS worked with Finance in developing the Commonwealth Lease Divestment Handbook, which includes new template documents with guidance notes for surrenders of lease, assignment of lease and subleases. Following this work, Senior Executive Lawyer Helen Moran assisted the Department of Finance with an update to the Memoranda of Understanding for ‘assignment’ and ‘sub-lease’ transactions for use between Commonwealth entities.

We also worked with a range of clients in developing template procurement and property documentation, including the Reserve Bank, Department of Health, Australian Sports Commission, Australian War Memorial, Food Standards Australia New Zealand and Department of Parliamentary Services.

Josephine Ziino Helen MoranJane Muir Cottman


AGS at work

Energy market reformAGS advised the Department of Industry and Science on key energy market reform initiatives of the COAG Energy Council and the interpretation and operation of the 3 cooperative schemes in the energy sector – the National Electricity Law (NEL), the National Gas Law (NGL) and the National Energy Retail Law (NERL) (the national energy laws).

Significant aspects of this work included:• advisingontheestablishmentofEnergyConsumersAustraliaLtd(ECA),anationalenergy

consumer advocacy body. ECA was established on 30 January 2015 as company limited by guarantee. It will perform a range of energy consumer advocacy functions nationally and administer grant funding, including for projects that will build knowledge and capacity in the national energy market.

• advisingonarangeofissuesrelevanttotheapplicationofthenationalenergylawsbyStatesand Territories, including the development and implementation legislation to apply the NERL inQueenslandandtheNELintheNorthernTerritoryandWesternAustralia;andreviewingthe national energy laws, including all State and Territory instruments, and advising on methodologies for introducing and managing difference

• instructingonamendmentstothenationalenergylawsandCommonwealthlegislationtoimplement various policy initiatives of the COAG Energy Council, including amendments to the NEL, NGL and Competition and Consumer Regulations 2010.

AGS also advised the Northern Territory and the Commonwealth governments on the phased application of the National Electricity Rules in the Northern Territory.

AGS’s work in supporting national energy market reform continues.

Andrew ChapmanPiccolo Willoughby

Sacha Moran Leo Hardiman Jenny Francis David LewisDanielle Chifley

Marlowe Thompson

The ECA establishment team included: • Office of General Counsel: Counsel Danielle Chifley, Senior General Counsel Sacha Moran,

National Group Leader OGC Leo Hardiman, Senior General Counsel Jenny Francis and David Lewis, Counsel Marlowe Thompson, Piccolo Willoughby and Andrew Chapman.

• AGS Commercial: Deputy General Counsel Commercial Paul Lang, National Group Manager Commercial Kenneth Eagle, Senior Executive Lawyer Clare Derix, Senior Lawyers Stuart Hilton and Lillian Riches.

Other advice and legislative development work for the Department of Industry and Science was performed by Counsel Danielle Chifley, Senior General Counsel Sacha Moran, Chief General Counsel Guy Aitken, Senior General Counsel David Lewis, Counsel Marlowe Thompson, Steffen Etherton and Sophie Maltabarow.

Work for the Northern Territory was performed by Counsel Steffen Etherton.

Steffen Etherton Sophie Maltabarow


Guy Aitken

Paul Lang Clare Derix Kenneth Eagle Stuart Hilton Lillian Riches

COMMUNITY SERVICE OBLIGATIONSAGS is not subject to, and does not receive funding for, any formal community service obligations. However, as a legal service provider and government entity, AGS has general obligations to the community and to its employees to act as a good corporate citizen. Key activities we undertake include pro bono legal work, environmental initiatives and reconciliation initiatives.

PRO BONO LEGAL WORKAGS can only undertake pro bono work that involves acting for a person or body for whom AGS can act in accordance with the Judiciary Act 1903. AGS does not undertake pro bono work in any matter against a Commonwealth agency or where there is an unacceptable potential for conflict of interest for government clients. We have an extensive pro bono program, which covers a diverse range of clients all across Australia and also internationally.

AGS’s pro bono work increased significantly this year, with an increase in the number of placements undertaken by our lawyers in public interest clearing houses, law referral schemes and community legal organisations and greater involvement in project and international work. In total we provided 7,628 hours of work, valued at $2,711,673. AGS’s dedication to pro bono was recognised at the 2014 ACLA in-house lawyer awards where we won the Excellence in Corporate Social Responsibility Award. We were also a finalist in the Lawyers Weekly pro bono awards and a recipient of a pro bono award from the Arts Law Centre of Australia.


PlacementsDuring the course of this financial year, AGS expanded the reach of our placement program to cover new pro bono clients all across Australia, for example the Tenants Union (ACT) and maintaining our placements with existing clients including Justice Connect, the Public Interest Advocacy Centre (NSW), the Consumer Advocacy Legal Centre (CALC), Women’s Legal Centre (ACT) Inc, the Darwin Community Legal Service (with whom we established a dedicated Credit and Debt Legal Service), the Arts Law Centre of Australia, the Consumer Law Centre (ACT), JusticeNet SA, the Employment Law Centre of WA, Street Law (ACT), the Western Australia Law Access Scheme, the Tasmanian Pro Bono Clearing House, the Victorian Disability Discrimination Legal Services, Canberra Consumer Law Ltd (ACT) and the Consumer Credit Legal Services (WA).

These placements have provided an added ‘hands-on’ resource to these organisations which operate with a limited number of lawyers and resource constraints. The pro bono assistance provided by AGS through these placements has in turn facilitated increased access to justice for some of the most disadvantaged and marginalised members of the community, as added cases are able to be managed, and advice and educational resources are made available to the community.

An example of the impact of our assistance is the work our lawyers on placement with the Women’s Legal Centre in the ACT undertook to develop and draft kits to guide self-represented litigants in matters involving care and protection orders. These kits, which

Social responsibility


are couched in clear, easy-to-understand language, are designed to assist those in the community who do not have the capacity to pay for legal assistance but need to navigate the relevant court processes and to ‘demystify’ those processes – but provide sufficient details on matters, such as how to complete the relevant forms and the nature of the evidence required to support the necessary applications.

Another example is the impact of our work with the Tasmanian Pro Bono Clearing House Scheme, administered by the Tasmanian Law Society, which confirmed that the placement made a significant difference to the Law Society’s ability to run the Pro Bono Scheme efficiently and effectively.

Project workAGS continued to provide advice to not-for-profit and charitable organisations to ensure that their resources can be better focused on delivering their charitable and community objectives. This year, we increased the number of organisations we assist and the range of services provided. This included UN Women, to whom we provided advice on a number of commercial arrangements; review and updating of a handbook published by the Environmental Defender’s Office (ACT) and a significant advice to Justice Connect relating to the regulation of retirement villages.

We also assisted with the Self Representation Program of Justice Connect on a pro bono basis, to provide assistance to draft fact sheets on bankruptcy, court practice and procedures, and Fair Work matters. These fact sheets are designed to explain in clear terms some of the key principles to better equip self-represented litigants to understand their rights and obligations and how the relevant court process works.

One of our lawyers travelled to Central Australia with lawyers from the Arts Law Centre to assist in a project under which Arts Law drafts wills for Indigenous visual artists in remote and regional areas of Australia and provides much-needed support to those in need.

AGS has been able to leverage the expertise we have built in our national teams in managing matters for our fee-paying government clients and apply these skills to innovative projects that will benefit those in the community who are disadvantaged and have limited means. Partnering with community legal centres in drafting kits and fact sheets has been an innovative measure promoting a greater understanding of how the law is meant to operate and ensuring that those who need justice have a mechanism for obtaining it.

Our National Manager, Pro Bono Services, is a panel member of the LawHelp pro bono referral scheme which AGS helped establish with the Office of the Registrar of Indigenous Corporations (ORIC). LawHelp assesses applications for pro bono assistance by not-for-profit corporations registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006. AGS continued to be involved in matters referred through the LawHelp scheme, providing pro bono legal assistance mainly relating to various commercial transactions.

International workAGS’s pro bono program also extends internationally and includes well-established training courses for lawyers of the Papua New Guinea Department of Justice and Attorney General. In the last year, we continued our biannual training program which covered areas such as advice-writing and presentation skills. AGS also continued to provide pro bono legal support to the PNG Family and Sexual Violence Case Management Centre based in Lae on a range of issues.

ENVIRONMENTAL PERFORMANCE Under s 516A of the Environment Protection and Biodiversity Conservation Act 1999, AGS is required to report on ecologically sustainable development and environmental matters.

As a specialist legal practice we provide services to client agencies to assist them with their operations, including ecologically sustainable development and environmental work.


The major impact of AGS’s business operations on the environment relates to resource usage in leased office accommodation.

Environmental policyWe acknowledge our responsibility to Government and the wider community to limit the negative impact of our operations on the environment. Our internal environmental policy details a range of initiatives that can be adopted by AGS corporately and by individual employees.

These include energy management, waste and recycling, water conservation and environmentally considered purchasing.

To help us implement these initiatives, we have a national network of environment contacts and greening groups, made up of employees who volunteer their time to assist with environmental initiatives.

RECONCILIATION AT AGSAGS’s Reconciliation Action Plan focused on a range of issues this year. We continue to recognise the traditional custodians of this land through acknowledging country at significant external events, inviting elders to conduct welcomes to country, screening films in some of our offices on Aboriginal and Torres Strait Islander issues and holding events in our offices to celebrate National Reconciliation Week and NAIDOC Week.

Five of our lawyers attended the Bridge Walk in Canberra on National Sorry Day and we held a number of events during Reconciliation Week and NAIDOC Week in AGS offices around the country. We held 2 presentations in Canberra that other offices joined by videoconference on Constitutional Recognition of Indigenous People. Some of our clients were invited to these presentations. The presentations were given by Tim Goodwin, a Melbourne barrister and a member of the Yuin people of the South Coast of New South Wales. A number of our staff attended courses in Indigenous art and

Indigenous cooking that were hosted by AGD at lunchtimes over a 6-week period. Our Melbourne office hosted a guided Aboriginal heritage walk for AGS staff and clients in the Melbourne Botanical Gardens.

AGS has a proven track record of providing pro bono legal services to Aboriginal and Torres Strait Islander organisations. AGS is a panel member of the LawHelp pro bono referral scheme which we helped establish with ORIC.

An Aboriginal staff member attended the Indigenous Law Conference during the year. In addition we provided a scholarship to an Aboriginal law student at the University of New South Wales and employment on a casual basis in our Sydney Office.

We display Aboriginal and Torres Strait Islander artwork in our buildings. This year we purchased a new artwork by Emma Daniels through her agent, Tangentyere Artists. We subscribe to Aboriginal and Torres Strait Islander newspapers and are increasing our Indigenous titles in our Library.

We offer free training places to Aboriginal and Torres Strait Islander law students and clients from our extensive training offerings.


AGS at work

A snapshot of the work being done by AGS offices around the country reveals a large and varied range of significant matters.

We include here a sample of matters largely worked on by AGS offices in the State and Territory capitals in 2014–15.

SEA 1000 Future Submarines Project Lawyers from our Melbourne, Canberra and Adelaide offices are working together to provide probity advice to the Department of Defence’s Capability Acquisition and Sustainment Group on the SEA 1000 Future Submarine Program and specifically the Competitive Evaluation Process to select an international partner to develop a future submarine that meets Australia’s naval capability requirements.

Air Warfare DestroyerLawyers from our Adelaide, Melbourne and Canberra offices provided probity advice to Department of Defence’s Capability Acquisition and Sustainment Group on aspects of the $8 billion Air Warfare Destroyer Project.

Western Sydney AirportA team of AGS lawyers drawn from our Melbourne, Sydney, Adelaide and Canberra offices, and across our Commercial, Dispute Resolution and Office of General Counsel practices, advised on a range of issues associated with the Western Sydney Airport project being run by the Department of Infrastructure and Regional Development, including site, planning, tenancy and environmental considerations, regulatory, procurement and process issues, as well as broader strategic issues for the project.

Medibank Private Initial Public Offer (IPO)AGS acted as the Commonwealth’s probity advisers on the Medibank Private IPO. Our team was led from our Melbourne office, with significant contributions also made by our Sydney and Canberra offices. See page 13.

Australian Sports Anti-doping Authority (ASADA) v EssendonAGS’s work for ASADA in relation to Essendon Football Club is covered in detail on page 16. AGS lawyers who worked on these matters were drawn from our Melbourne and Canberra offices.

Informed SourcesAGS lawyers in Canberra, Melbourne and Adelaide are acting for the Australian Competition and Consumer Commission (ACCC) in the Informed Sources matter – a case dealing with an information-sharing service that major petrol retailers subscribe to. The ACCC alleges that the use of the service has the effect or likely effect of substantially lessening competition in the Melbourne petrol market.

DHA documents and guidelinesOur Darwin and Perth offices worked together on a suite of documents and guidelines to be used by Defence Housing Australia’s national development team for development land acquisitions. Our Adelaide, Melbourne, Hobart, Brisbane, Canberra and Sydney offices provided jurisdiction-specific input.

Muirhead ProjectA team of AGS Commercial lawyers from Darwin, Perth and Adelaide dealt with more than 550 new acquisition, sale and leaseback, leasing and disposal matters, and managed the issue of contracts and settlements for 200 lots of land sold for Defence Housing Australia as part of the Muirhead Project in the Northern Territory.

Significant matters in AGS State and Territory offices


Rockingham and Seaward Village redevelopmentsOur Darwin and Perth offices advised Defence Housing Australia on issues associated with the redevelopment of residential caravan parks in Rockingham, Western Australia.

Tobacco plain packagingWork on tobacco plain packaging continued in the international arena during 2014–15. AGS staff from our Sydney, Melbourne, Canberra and Brisbane offices worked on hearings relating to international challenges to plain packaging measures.

ACMA v Today FMLawyers from our Sydney office worked on the successful High Court appeal in the matter of Australian Communications and Media Authority v Today FM (Sydney) Pty Ltd (Today FM), covered in detail on page 9.

Royal Commission into Institutional Responses to Child Sexual Abuse An AGS team on long-term outpost as the Solicitor Assisting the Royal Commission into Institutional Responses to Child Sexual Abuse included lawyers from our Sydney, Canberra and Adelaide offices.

Lindt Café Siege Coronial Inquest AGS acted for a range of Commonwealth agencies – including Australian Security Intelligence Organisation, the Australian Federal Police, Department of Defence and Attorney-General’s Department – in the coronial inquest into the deaths arising from the Lindt Café siege. Our national team consisted of lawyers from our Sydney and Canberra offices.

Shen Neng 1AGS advised on a civil claim in the Federal Court for damages arising from the largest ship ever to ground on the Great Barrier Reef – Shen Neng 1. Our team on this matter was drawn from our Brisbane office.

Live cattle exportsAGS acted for the Commonwealth and former Minister Ludwig in representative proceedings arising from the suspension of live cattle exports in June 2011. The AGS team on this matter included lawyers from Canberra, Brisbane, Perth, Melbourne and Adelaide.

False imprisonment claimOur Perth office advised on a matter for the Department of Immigration and Border Protection, in which the Commonwealth was successful in its argument that the applicant should only be awarded nominal damages for his false imprisonment. That decision was appealed by the applicant and the Full Court of the Federal Court dismissed the appeal and upheld the Commonwealth’s appeal in relation to an award of exemplary damages. Note – special leave to appeal has been granted in relation to this matter.

Nauru and Papua New Guinea regional processing centresAGS lawyers in Melbourne, Sydney and Canberra acted in matters relating to a challenge to the validity of the regional processing centres in Nauru and Papua New Guinea, as well as managing claims for damages for persons transferred to those centres in a variety of State and federal courts.


Justine KnowlesTiff Brown Danielle Gatehouse Matthew WalshDi Horton Clare Derix

AGS Australia Day Awards 2015Each year, our Australia Day Awards recognise the outstanding achievements and significant contributions to AGS by staff across Australia. Recipients of this year’s awards follow.

Di Horton, IT Contracts Manager, IT Services – in recognition of her outstanding client service and commitment to AGS.

Tiff Brown, Corporate Communications Production Manager, Client Services – in recognition of her outstanding client service within AGS and to our clients.

Justine Knowles, Senior Executive Lawyer, AGS Dispute Resolution – in recognition of her strategic advice to the Defence Department and the Australian Electoral Commission.

Clare Derix, Senior Executive Lawyer, AGS Commercial – in recognition of her outstanding contribution to the Drought Concessional Loans Scheme and Farm Finance Concessional Loans with Department of Agriculture.

Danielle Gatehouse, Senior Lawyer, AGS Dispute Resolution – in recognition of her professionalism, particularly in coordinating the ACCC unconscionable conduct proceedings against Coles Supermarkets from 2012 until mid-2014.

Matthew Walsh, National Client Service Manager, Australian Taxation Office – in recognition of his outstanding commitment and service to the ATO.

Kathryn Gordon, Senior Lawyer, AGS Dispute Resolution – in recognition of her outstanding work, particularly in coordinating the ACCC unconscionable conduct proceedings against Coles Supermarkets in 2014.

Fiona Dempsey, Senior Lawyer, AGS Dispute Resolution – in recognition of her excellent client service, and her supervision and mentoring of AGS lawyers.

Tony Giugni, Senior Executive Lawyer, AGS Dispute Resolution – in recognition of his outstanding work as Solicitor Assisting the Royal Commission into Institutional Responses to Child Sexual Abuse.

Dr Genevieve Ebbeck, Senior General Counsel, Office of General Counsel – in recognition of her ongoing outstanding contribution to AGS’s immigration advising practice and support to the leadership of OGC.

AGS at work


TeamsLegal Technology Solutions team – Quynh Huynh, Tony Ferguson, Ana Sumanovic, Noel Finden and Ulrich Adami – in recognition of outstanding work and commitment to supporting legal teams.

National IT Service Desk team – Nikki Peever, Antony Spence, Richard Forrest, Moses Choy, Dean Reid, Susan Nguyen and Ryan Andersen – in recognition of outstanding work and commitment to supporting legal teams.

Home Insulation Program team – Tom Howe PSM QC, Damien O’Donovan, Louise Rafferty, Laura Armstrong, Rebecca Daumont, Sam Thorpe, Alison Thompson, Kristy Alexander, Antony Spence and Quynh Huynh – in recognition of their outstanding commitment to service delivery and teamwork in support of government.

Essendon and Hird v ASADA Federal Court team – Craig Rawson, Cherie Canning, Melissa Gangemi, Chris McDermott, Cathy Mayne, Tom Howe PSM QC, Kim Bennett and Justin Davidson – in recognition of the exceptional work in running this significant and high-profile matter in an extraordinarily collegiate way, under enormous time pressures, and delivering an excellent result for our client.

OGC’s support staff – Carol Benda, Marilyn Leverink, Kristina Nocevska, Jess West, Vicki Cronan, Lydia Dadswell, Noemi Di Giannicola, Erin Kelly, Trang Nguyen, Rosanna Pangallo, Elizabeth Permalloo and Ana Silva – in recognition of their outstanding teamwork and professionalism in providing OGC lawyers with exemplary legal support.

Williams No. 2 team – Guy Aitken, Leo Hardiman, Jenny Burnett, Mark Molloy, Damian Page, Hilary Manson, Bridget Gilmour-Walsh, Tara McNeilly, Robyn Briese, Olivia Abbott, Sam Arnold, Andrew Chapman, Helen Chisholm, Steffen Etherton, Michael O’Rourke and Emilie Sutton – in recognition of their outstanding work in completing 2 tranches of constitutional risk assessments of departmental programs for 15 departments in very tight timeframes in the wake of the High Court’s decision in Williams v Commonwealth No.2.

G20 team – Tony Beal, Denise Bond, Kate Brophy, Garth Cooke, Helen Curtis, Katy Grimes, Cathy He, Stuart Hilton, Andrew Miles, Joanna Piva, Phil Sedgley-Perryman, Adrian Snooks, Aleksandra Spasenoska, Lillian Riches, Vlasia Pappas, Michelle Eames, Michelle Rothall, Elena Arduca, Chris Behrens, Melita Parker, Leo Hardiman, Olivia Abbott, Liam Boyle, Adam Cason, Steffen Etherton and Sarah Spottiswood – in recognition for the outstanding support provided to government during the G20 meeting in Brisbane.

Privatisation of Medibank team – John Scala, Garth Cooke, Paul Lang, Stuart Hilton, Brett Gulley, Michelle Eames, Tanya Ferrari, Clare Derix and Kate Brophy – in recognition for the outstanding legal work provided to government in the privatisation of Medibank.

Tony Giugni Dr Genevieve EbbeckKathryn Gordon Fiona Dempsey

PART 3financial

statements



AUSTRALIAN GOVERNMENT SOLICITOR

STATEMENT BY ACCOUNTABLE AUTHORITY, CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER In our opinion, the attached financial statements for the year ended 30 June 2015 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.These are the final financial statements of Australian Government Solicitor as a separate reporting entity as it was abolished on 1 July 2015. The functions are continuing in the Attorney-General’s Department.The Attorney-General’s Department will be able to meet the debts of the ceased entity as and when they fall due.

Chris Moraitis PSM Stuart RankinAccountable Authority Secretary, Australian Government SolicitorAttorney-General’s Department Chief Financial Officer

24 August 2015 24 August 2015

Ian Govey AMThe Australian Government Solicitor(formerly Chief Executive Officer, Australian Government Solicitor)

24 August 2015


STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June 2015

Year ended 30 June 2015

$'000


$'000 Notes

INCOME

Revenue

Sale of goods and rendering of services 4A 117,291 109,206

Interest 4B 1,395 1,437

Other revenues 4C 2,903 2,074

Total revenue 121,589 112,717

Gains

Reversals of previous asset write-downs and impairments

4D 296 –

Total income 121,885 112,717

EXPENSES

Employee benefits 5A 85,950 83,913

Suppliers 5B 21,197 19,834

Depreciation and amortisation 5C 3,423 2,739

Losses from asset sales 5D 55 91

Write-down and impairment of assets 5E 781 29

Other expenses 6 473 448

Total expenses 111,879 107,054

Profit before income tax 10,006 5,663

Income tax expense 7 9,771 1,748

Profit after income tax 235 3,915

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to profit or loss

Changes in asset revaluation reserves 275 –

Total comprehensive income attributable to the Australian Government

510 3,915

The above schedule should be read in conjunction with the accompanying notes.



STATEMENT OF FINANCIAL POSITIONas at 30 June 2015


Notes30 June 2015

$'00030 June 2014

$'000

ASSETS

Current assets

Cash and cash equivalents 9A 31,573 10,948

Investments under s59 of the PGPA Act 9B – 19,807

Receivables 10 32,905 29,437

Other current assets 11 1,877 2,332

Total current assets 66,355 62,524

Non-current assets

Infrastructure, plant and equipment 12A, C 16,889 18,523

Intangibles 12B, C 3,238 1,717

Deferred tax asset 7 – 6,489

Total non-current assets 20,127 26,729

Total assets 86,482 89,253

LIABILITIES

Current liabilities

Payables 13 18,585 13,554

Lease incentives 14 1,142 1,142

Provisions 15 26,794 23,995

Total current liabilities 46,521 38,691

Non-current liabilities

Lease incentives 14 7,520 8,662

Provisions 15 6,036 5,842

Total non-current liabilities 13,556 14,504

Total liabilities 60,077 53,195

Net assets 26,405 36,058

EQUITY

Contributed equity 22,918 22,918

Reserves 902 638

Retained earnings 2,585 12,502

Total equity 26,405 36,058



Retained earnings

Asset revaluation reserve

Contributed equity

Total equity

2015 $'000

2014 $'000

2015 $'000

2014 $'000

2015 $'000

2014 $'000

2015 $'000

2014 $'000

Opening balance

Balance carried forward from previous years

12,502 11,009 638 4,788 22,918 22,918 36,058 38,715

Comprehensive income

Other comprehensive income

Revaluation adjustment – – 275 – – – 275 –

Profit after income tax 235 3,915 – – – – 235 3,915

Total comprehensive income 235 3,915 275 – – – 510 3,915

Transactions with ownersDistributions to ownersReturns on capital Dividends (10,163) (6,572) – – – – (10,163) (6,572)

Total transactions with owners (10,163) (6,572) – – – – (10,163) (6,572)

Transfer between equity components

11 4,150 (11) (4,150) – – – –

Closing balance as at 30 June 2,585 12,502 902 638 22,918 22,918 26,405 36,058


STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2015


1 Total cash and cash equivalents includes investments under section 59 of the Public Governance, Performance and Accountability Act 2013.



STATEMENT OF CASH FLOWS for the year ended 30 June 2015



Notes $'000 $'000

OPERATING ACTIVITIES

Cash received

Legal fees and reimbursements by clients 162,736 152,300

Interest 1,642 1,777

Other cash received 2,903 2,074

Total cash received 167,281 156,151

Cash used

Employees (83,935) (84,877)

Suppliers (54,973) (54,618)

Income taxes paid (1,496) (2,494)

Net GST paid (10,133) (9,001)

Other (474) (450)

Total cash used (151,011) (151,440)

Net cash from operating activities 16 16,270 4,711

INVESTING ACTIVITIES

Cash used

Purchase of plant and equipment (3,603) (10,716)

Total cash used (3,603) (10,716)

Net cash used by investing activities (3,603) (10,716)

FINANCING ACTIVITIES

Cash received

Lease incentives received – 1,911

Total cash received – 1,911

Cash used

Dividends paid (11,849) (4,723)

Total cash used (11,849) (4,723)

Net cash used by financing activities (11,849) (2,812)

Net decrease in cash held 818 (8,817)

Cash and cash equivalents at the beginning of the reporting period 30,755 39,572

Cash and cash equivalents at the end of the reporting period1 9 31,573 30,755



SCHEDULE OF COMMITMENTSas at 30 June 2015

1 Operating leases included are effectively non-cancellable and comprise: Commitments are GST inclusive where relevant.

Nature of lease General description of leasing arrangement

Leases for office accommodation Lease payments are subject to annual or bi-annual review, either to market or be fixed increases as set out in the individual leases.

Agreements for the provision of motor vehicles for senior executives

No contingent rentals exist. There are no renewal or purchase options available to AGS.

Agreements for the provision of office equipment

Office equipment includes photocopiers and office machines and are leased over periods of 1 to 5 years at fixed payments.


30 June 2015 30 June 2014$'000 $'000

BY TYPECommitments receivableSublease rental income 2,829 3,872

Net GST recoverable on commitments 7,791 9,823

Total commitments receivable 10,620 13,695

Other commitmentsOperating leases1 93,149 103,459

Total other commitments 93,149 103,459

Net commitments by type 82,529 89,764

BY MATURITYCommitments receivableOperating lease incomeWithin 1 year 975 1,695

Between 1 to 5 years 1,854 2,177

More than 5 years – –

Total operating lease income 2,829 3,872

Other commitments receivableWithin 1 year 1,023 1,054


More than 5 years 3,391 4,317

Total other commitments receivable 7,791 9,823

Total commitments receivable 10,620 13,695

Commitments payableOperating lease commitmentsWithin 1 year 11,231 12,010


More than 5 years 38,076 47,243

Total operating lease commitments 93,149 103,459

Total commitments payable 93,149 103,459

Net commitments by maturity 82,529 89,764




NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2015

Description

1 Summary of significant accounting policies

2 Segment reporting

3 Events occurring after Balance Sheet date

4 Income

5 Expenses

6 Other expenses

7 Income tax

8 Dividends provided for and paid

9 Cash, cash equivalents and investments

10 Receivables

11 Other current assets

12 Non-current assets

13 Payables

14 Lease incentives

15 Provisions

16 Cash flow reconciliation

17 Client and third party funds

18 Contingent liabilities and assets

19 Key management personnel remuneration

20 Remuneration of auditors

21 Financial instruments

22 Fair value measurements

1. Summary of Significant accounting policieS

1.1 Objective of Australian Government SolicitorFor the financial year, Australian Government Solicitor (AGS) was a for-profit Australian Government controlled entity and a leading provider of legal and related services to Australian Government departments and agencies. Operating on a fully commercial and competitive basis, AGS has an office in every capital city.AGS was a corporate Commonwealth entity, within the Attorney-General’s portfolio, established under the Judiciary Act 1903. AGS was subject to the reporting and accountability requirements of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).AGS was also a government business enterprise as prescribed by regulations made under the PGPA Act. AGS had 2 shareholder ministers, the Attorney-General and the Minister for Finance.From 1 July 2015, AGS will cease to be a government business enterprise and will be consolidated into the Attorney-General’s Department. Following consolidation, AGS will not operate as a government business enterprise. AGS acts primarily for Australian Government departments and agencies, and for entities in which the Australian Government has an interest. AGS also acts for State and Territory government organisations at their executive government’s request.

1.2 Basis of preparation of the financial statementsThe financial statements are general purpose financial statements and are required by section 42 of the PGPA Act. The financial statements are prepared on the assumption that the assets and liabilities will be realised in the normal course of business.The financial statements have been prepared in accordance with:• FinanceReportingRule(FRR)forreportingperiods

ending on or after 1 July 2014• AustralianAccountingStandardsandInterpretations

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 are in accordance with 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 FRR, 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 AGS or a future sacrifice of economic benefits will be required and the amounts of the assets

>


1.4 New Accounting StandardsAdoption of new Australian Accounting Standard requirements No accounting standard has been adopted earlier than the application date as stated in the standard. No new or revised standards, amending standards or interpretations that were issued prior to signing of the statement by the Chief Executive Officer and Chief Finance Officer which are applicable to the current reporting period have a financial impact, or are expected to have a future financial impact on AGS.

Future Australian Accounting Standard requirementsNo new or revised standards, amending standards or interpretations that were issued prior to signing of the statement by the Chief Executive Officer and Chief Finance Officer which are applicable to the future reporting periods are expected to have a future financial impact on AGS.

1.5 RevenueRevenue from the provision of legal services is recognised when time is recorded on matters, as the amounts of revenue can be reliably measured and it is probable that economic benefits will flow to AGS.Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial instruments: Recognition and measurement.Other revenue is recognised when received or due and receivable. Recoveries of disbursements and the associated expense have been recognised in the financial statements. AGS incurs expenses on behalf of clients associated with the provision of legal services. These expenses total $31,961,000 ($25,594,000 for the year ended 30 June 2014) and are billed to the clients on a cost-recovery basis. They are disclosed in Notes 4A and 5B and the flow of funds is shown in the Statement of Cash Flows. Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.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 balance date. Allowances are made when collectability of the debt is no longer probable.

1.6 GainsSales of assetsGains from disposal of assets are recognised when control of the asset has passed to the buyer.

ValuationsAny revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset that was previously recognised through operating result (refer Note 1.17).


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 and the schedule of contingencies note.Unless 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.At the Mid-Year Economic Fiscal Outlook, the Government decided that AGS should be consolidated within the Attorney-General’s Department (AGD). The Judiciary Amendment Act 2015 was passed on 16 June 2015 that enabled this consolidation to take effect on 1 July 2015. Following consolidation, AGS no longer operates as a government business enterprise and as a result the entity is no longer a going concern following the wind-up and transfer of all its assets, liabilities and records to AGD. This set of financial statements has been prepared on the basis that the essential functions of AGS will continue within AGD from 1 July 2015. During the current year, AGS restated the comparative balance of Net Commitments from $83,122,000 to $89,764,000.

1.3 Significant accounting judgments and estimatesIn the process of applying the accounting policies listed in this note, AGS has made the following judgments that have the most significant impact on the amounts recorded in the financial statements:The fair value of leasehold improvements has been taken to be the market value of similar properties as determined by an independent valuer.The liability for long service leave has been determined by reference to the shorthand method prescribed in the FRR as at 30 June 2015. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Infrastructure, 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 materially differ with 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. No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.


1.7 Transactions with the Australian Government as ownerAt 30 June 2015, AGS has provided a liability for a final dividend for the current year. The amount and timing of the final dividend payment was agreed by shareholder Ministers (refer Note 8).

1.8 Employee benefitsBenefitsLiabilities for short-term employee benefits (as defined by AASB 119 Employee benefits) and termination benefits due within 12 months of the end of 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 benefits are measured as 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.

LeaveThe liability for employee entitlements includes provision for recreation 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 AGS 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 apply at the time the leave is taken, including AGS’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 has been determined by reference to the shorthand method prescribed in the FRR as at 30 June 2015. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancyProvision is made for separation and redundancy payments. AGS 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.Provision for separation and redundancy payable of $690,000 was made at 30 June 2015 ($458,000 in 2014). In addition a current provision for separation and redundancy of $458,000 was made at 30 June 2015 (non-current provision of $401,000 in 2014).

SuperannuationEmployees of AGS are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or to a scheme determined by the employee, or in default of

nomination by the employee, a scheme nominated by AGS.The CSS and PSS are defined benefit schemes for the Australian Government. Other super schemes are defined contribution schemes.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 by the Department of Finance’s administered schedule and notes.AGS makes employer contributions to the employee superannuation schemes of:• theAustralianGovernment,atratesdeterminedbyan

actuary to be sufficient to meet the current cost to the Government. AGS accounts for the contributions as if they were contributions to defined contribution plans.

• non-AustralianGovernmentfunds,asdeterminedbythe current AGS certified agreement.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.9 LeasesA 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 non-current 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 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. Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.

1.10 Borrowing costsAll borrowing costs are expensed as incurred. During the year AGS had no loans.

1.11 Fair value measurementAGS deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.




1.12 CashCash is recognised at its nominal amounts.Cash and cash equivalents includes:• cashonhand• demanddepositsinbankaccountswithanoriginal

maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

Cash and cash equivalents include investments under section 59 of the PGPA Act.

1.13 Financial assets AGS classifies its financial assets in the following categories:• held-to-maturityinvestments• receivables.The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.Financial assets are recognised and derecognised upon trade date.

Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that AGS has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Receivables Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of financial assetsFinancial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost – If there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.14 Financial liabilities Financial liabilities are classified as other financial liabilities.Financial liabilities are recognised and derecognised upon trade date.

Other financial liabilities Other financial liabilities are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.15 Contingent liabilities and contingent assetsContingent Liabilities and Contingent Assets are not recognised in the Balance Sheet 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.

1.16 Acquisition of assetsAssets 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.



Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2014–15 2013–14

Library 7–10 years 7–10 years

Leasehold improvements lease term lease term

Other infrastructure, plant and equipment

– computer equipment 3–7 years 3–7 years

– other plant and equipment 5–10 years 5–15 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 5C.

ImpairmentAll assets were assessed for impairment at 30 June 2015. 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 to sell 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 AGS were deprived of the asset, its value-in-use is taken to be its depreciated replacement cost.No indicators of impairment were found for assets at fair value.

DerecognitionAn item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

1.18 IntangiblesAGS intangibles comprise internally developed software for internal use and purchased software. These assets are carried at cost.Software is amortised on a straight-line basis over its anticipated useful life. The useful life of AGS’s software is 3–7 years (2013–14: 3–7 years).All software assets were assessed for indications of impairment as at 30 June 2015. No indicators of impairment were found.

1.19 Taxation / competitive neutralityAGS is exempt from all State and Territory taxation. It is liable for Income Tax, Fringe Benefits Tax and for Goods and Services Tax (GST). Revenues, expenses and assets are recognised net of GST except:• wheretheamountofGSTincurredisnotrecoverable

from the Australian Taxation Office• forreceivablesandpayables.


1.17 Infrastructure, plant and equipmentAsset recognition thresholdPurchases of infrastructure, plant and equipment are recognised initially at cost in the Statement of Financial Position, where the equipment has a useful economic life greater than 12 months and the type of asset collectively represents a significant investment of AGS funds. Other purchases are expensed in the year of acquisition.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. This is particularly relevant to ‘make-good’ provisions in property leases taken up by AGS where there exists an obligation to restore the property to its original condition. These costs are included in the value of AGS leasehold improvements with a corresponding provision for the ‘make-good’ recognised.

RevaluationsFollowing initial recognition at cost, infrastructure, plant and equipment is carried at fair value. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ with 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. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset that was previously recognised through operating result. Revaluation decrements for each asset are recognised directly through operating result except to the extent that they reverse a previous revaluation increment for that asset.Any accumulated depreciation as at the revaluation date for Library and Infrastructure, plant and equipment assets are eliminated against the gross carrying amount and the asset restated to the revalued amount. Any accumulated depreciation as at the revaluation date for Leasehold assets is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount.

DepreciationDepreciable infrastructure, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to AGS using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.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.



Competitive neutrality So that AGS does not have a competitive advantage over private sector legal practices, these financial statements include charges representing the full value of these items shown under the categories to which they relate. Amounts identified as competitive neutrality expenses are paid to Consolidated Revenue each year and are recorded in the Financial Statements as a liability to the extent that they are unpaid at 30 June 2015.

1.20 InsuranceAGS is aware of the potential for losses arising from its normal operations as a legal practice and has taken out insurance arrangements designed to ensure that the risk of adverse effect on the profits, assets and cash flow is minimised. Workers’ compensation is insured through Comcare Australia.

1.21 Income taxCurrent tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised.The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.Deferred income tax assets are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. As AGS is an ‘exempting entity’ under the Income Tax Assessment Act 1997, the Commonwealth, as its owner, is not entitled to franking credits and AGS is not required to maintain a franking account.

The Deferred Tax asset of $6,583,000 at 30 June 2015 has been written-off to income tax expense as AGS will cease to be a taxpayer from 1 July 2015. As a result this amount is not recoverable.

2. Segment reportingThe principal activity of AGS is the provision of legal and related services. AGS operates in every Australian capital city. Each office provides a similar range of services and serves principally Commonwealth Government clients. The majority of such services are provided under nationally negotiated contractual arrangements.AGS regards the appropriate unit for segment reporting to be all legal and related services delivered by AGS from its Australian offices.

3. eventS after the reporting periodOn 15 December 2014, the Government announced that it would consolidate AGS within AGD. The consolidation will take effect from 1 July 2015. This transaction has not been accounted for in this financial statement for the year ended 30 June 2015.In respect of functions assumed, the net book values of assets and liabilities transferred from AGS to AGD for no consideration and recognised as at 1 July 2015 are as follows:

AGS assets and liabilities transferred to AGD at 1 July 2015

$'000

Assets

Financial assets 66,355

Non-financial assets 20,127

Total assets 86,482

Liabilities

Financial liabilities 18,585

Non-financial liabilities 41,492

Total liabilities 60,077

Net assets assumed 26,405


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4. income

Note 4A – Sale of goods and rendering of services

Legal fees and disbursements recovered or recoverable on behalf of clients

149,252 134,800

Disbursements recovered or recoverable on behalf of clients (refer Note 1.5)

(31,961) (25,594)

Total operating revenues 117,291 109,206

Rendering of services in connection with

Related entities 112,911 105,170

External entities 4,380 4,036

Total rendering of services 117,291 109,206

Note 4B – Interest

Deposits in AGS accounts 1,174 1,212

Deposits in client and third party accounts (refer Note 17) 221 225

Total interest 1,395 1,437

Note 4C – Other revenues

Reimbursements and miscellaneous receipts 1,401 912

Rental income 1,502 1,162

Total other revenues 2,903 2,074

Note 4D – Reversals of previous asset write-downs and impairments

Asset revaluation increments from revaluation

Library 53 –

Leasehold improvements 80 –

Plant and equipment written-up on revaluation 163 –

Asset revaluation increments from revaluation 296 –

5. expenSeS

Note 5A – Employee benefits

Wages and salaries 63,704 63,290

Superannuation

Defined contribution plans 5,499 5,543

Defined benefit plans 4,258 3,903

Leave and other entitlements 7,946 6,261

Separation and redundancy 1,298 1,472

Competitive neutrality – state payroll tax equivalence expense 3,245 3,444

Total employee benefits 85,950 83,913



$'000 $'000


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5. Expenses (cont.)

Note 5B – Suppliers

Supply of goods and services and disbursements paid or payable on behalf of clients

43,432 36,310

Disbursements paid or payable on behalf of clients (refer Note 1.5)

(31,961) (25,594)

Property lease rentals – minimum lease payments 8,946 8,109

Surplus lease expense 230 379

Workers’ compensation premiums 433 513

Competitive neutrality – regulatory neutrality expense 117 117

Total suppliers 21,197 19,834

Rendering of services in connection with

Related entities 611 483

External entities 20,586 19,351

Total rendering of services 21,197 19,834

Note 5C – Depreciation and amortisation

Depreciation:

Library 32 32

Leasehold improvements 1,540 1,462

Infrastructure, plant and equipment 1,432 930

Total depreciation 3,004 2,424

Amortisation:

Intangibles

Computer software 419 315

Total amortisation 419 315

Total depreciation and amortisation 3,423 2,739

Note 5D – Losses from asset sales

Infrastructure, plant and equipment

Net book value of assets disposed 55 91

Total losses from asset sales 55 91

Note 5E – Write-down and impairment of assets

Impairment loss expense – receivables (28) 29

Revaluation decrement – Library 56 –

Revaluation decrement – Leasehold improvements 162 –

Revaluation decrement – Infrastructure, plant and equipment 591 –

Total write-down and impairment of assets 781 29




$'000 $'000


6. other expenSeS

Insurance 424 399

Competitive neutrality – State insurance duty equivalence expense

49 49

Total other expenses 473 448

7. income tax

Prima facie income tax payable on accounting profit at 30% 3,001 1,699

Tax effect of expenses that are not deductible for tax purposes 187 49

(Over) / Underprovision for income tax for prior year – –

Write-off deferred tax asset not recoverable (refer Note 1.21) 6,583 –

Income tax expense 9,771 1,748

Income tax expense comprises:

(Receivable) / Provision for taxation 1,328 (459)

Provisional tax payments made 2,040 1,867

(Over) / Underprovision for income tax for prior year (86) –

Movement in deferred tax asset for current year (94) 340

Write-off deferred tax asset not recoverable (refer Note 1.21) 6,583 –

Income tax expense 9,771 1,748

Deferred tax asset – 6,489

8. dividendS provided for and paid

Final dividend 2012–13 – 1,723

Special dividend 2012–13 – 2,500

Interim dividend 2013–14 – 500

Final dividend 2013–14 – 1,849

Interim dividend 2014–15 500 –

Special dividend 2014–15 9,500 –

Final dividend 2014–15 163 –

Total dividends provided for and paid 10,163 6,572

9. caSh, caSh equivalentS and inveStmentS

Note 9A – Cash and cash equivalents

Cash on hand or on deposit 31,573 10,948

Total cash and cash equivalents 31,573 10,948




$'000 $'000

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9. Cash, cash equivalents and investments (cont.)

Note 9B – Investments under s59 of the PGPA Act

Investments comprise:

Term deposits with an original maturity of greater than 3 months and less than 1 year

–

19,807

Total investments under s59 of the PGPA Act – 19,807

Total cash, cash equivalents and investments 31,573 30,755

10. receivableS

Goods and services 25,070 24,101

Less: impairment allowance account (458) (488)

24,612 23,613

Other debtors 8,293 5,577

Interest – 247

8,293 5,824

Total receivables (net) 32,905 29,437

All receivables are expected to be recovered in no more than 12 months.

Receivables (gross) are aged as follows:

Not overdue 26,346 25,651

Overdue by:

– less than 30 days 3,795 2,878

– 30 to 60 days 2,626 683

– 60 to 90 days 396 345

– more than 90 days 200 368

7,017 4,274

Total receivables (gross) 33,363 29,925

The impairment allowance account is aged as follows:

Not overdue (458) (341)

Overdue by:

– less than 30 days – (13)

– 30 to 60 days – (23)

– 60 to 90 days – (10)

– more than 90 days – (101)

Total impairment allowance account (458) (488)



$'000 $'000


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10. Receivables (cont.)

Reconciliation of the impairment allowance account:

Goods and services

Opening balance (488) (461)

Amounts recovered and reversed 488 461

Increase recognised in operating profit (458) (488)

Closing balance (458) (488)

11. other current aSSetS

Prepaid property rentals 743 694

Prepaid insurance premiums – 350

Other prepayments 1,134 1,288

Total other current assets 1,877 2,332

All other current assets are expected to be realised in the next 12 months.

12. non-current aSSetS

Note 12A – Infrastructure, plant and equipment

Library

Fair value 296 319

Accumulated depreciation – (32)

Total library 296 287

Leasehold improvements

Fair value 20,254 19,749

Accumulated depreciation (7,972) (6,028)

Total leasehold Improvements 12,282 13,721


Fair value 4,311 5,438

Accumulated depreciation – (923)

Total other infrastructure, plant and equipment 4,311 4,515

Total infrastructure, plant and equipment 16,889 18,523

All revaluations are conducted in accordance with the revaluation policy stated at Note 1. In 2014–15, an independent valuer conducted the revaluations.Valuations of Leasehold improvements and infrastructure, plant and equipment, with the exception of the financed lease incentives, were carried out at 30 June 2015 by an independent valuer.No indicators of impairment were found for infrastructure, plant and equipment.




$'000 $'000

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12. Non-current assets (cont.)

Note 12A – Infrastructure, plant and equipment (cont.)

Opening asset revaluation reserve 638 4,788

Library increment 47 –

Library decrement (3) –

44 –

Leasehold improvements increment 164 –

Leasehold improvements decrement – –

164 –

Other infrastructure, plant and equipment increment 91 –

Other infrastructure, plant and equipment decrement (24) –

67 –

Transfer reserve on disposed assets to retained earnings (11) (4,150)

Closing asset revaluation reserve 902 638

Note 12B – Intangibles

Computer software

Purchased 5,064 4,033

Internally generated – in progress 1,815 901

Accumulated amortisation (3,641) (3,217)

Total intangibles 3,238 1,717

No indicators of impairment were found for intangible assets.

No intangibles are expected to be sold or disposed of within the next 12 months.



$'000 $'000



As at 1 July 2014

Gross book value 319 19,749 5,438 25,506 4,934 30,440

Accumulated depreciation/amortisation (32) (6,028) (923) (6,983) (3,217) (10,200)

Total as at 1 July 2014 287 13,721 4,515 18,523 1,717 20,240

Additions by purchase – 19 1,644 1,663 1,940 3,603

Additions from lease incentive – – – – – –

Revaluations through equity 44 164 67 275 – 275

Revaluations through profit and loss (3) (82) (428) (513) – (513)

Impairments through profit and loss – – – – – –

Depreciation/amortisation expense (32) (1,540) (1,432) (3,004) (419) (3,423)

Disposals – – (55) (55) – (55)

Total as at 30 June 2015 represented by:

Gross book value 296 20,254 4,311 24,861 6,879 31,740

Accumulated depreciation/amortisation – (7,972) – (7,972) (3,641) (11,613)

Total as at 30 June 2015 296 12,282 4,311 16,889 3,238 20,127

Reconciliation of the opening and closing balances of infrastructure, plant and equipment and intangibles (2013–14) As at 1 July 2013

Gross book value 319 19,229 1,413 20,961 3,628 24,589

Accumulated depreciation/amortisation – (14,730) – (14,730) (3,034) (17,764)

Total as at 1 July 2013 319 4,499 1,413 6,231 594 6,825

Additions by purchase – 3,349 4,013 7,362 1,443 8,805

Restatement of make-good – – – – – –

Revaluations through equity – – – – – –

Revaluations through profit and loss – – – – – –

Impairments through profit and loss – – 139 139 – 139

Depreciation/amortisation expense (32) (1,462) (930) (2,424) (315) (2,739)

Disposals – (105) (120) (225) (5) (230)

Total as at 30 June 2014 represented by:

Gross book value 319 19,749 5,438 25,506 4,934 30,440

Accumulated depreciation/amortisation (32) (6,028) (923) (6,983) (3,217) (10,200)

Total as at 30 June 2014 287 13,721 4,515 18,523 1,717 20,240

Total

$'000Intangibles –

computer software

$'000Total other infra-

structure, plant and

equipment

$'000Other in

frastructure,

plant and equipment

$'000Leasehold

improvements

$'000Library

$'000

Note 12C – Reconciliation of the opening and closing balances of infrastructure, plant, equipment and intangibles

Reconciliation of the opening and closing balances of infrastructure, plant and equipment and intangibles (2014–15)

Item


12. Non-current assets (cont.)



$'000 $'000


13. payableS

Trade creditors 12,078 8,032

Salaries and wages 2,591 1,875

Superannuation 372 295

Separations and redundancies 690 458

Due to Consolidated Revenue Fund 386 320

Net payable to ATO 2,305 725

Dividend payable 163 1,849

Total payables 18,585 13,554

All payables are currentTrade creditors: Settlement is usually made net 30 days or in accordance with supplier terms of payment.

14. leaSe incentiveS

Lease incentives 8,662 9,804

Lease incentives are categorised as follows:

Current 1,142 1,142

Non-current 7,520 8,662

Total lease incentives 8,662 9,804

Lease incentives includes those used to finance leasehold improvements.

15. proviSionS

Employee provisions

Current

Recreation leave 5,990 5,894

Long service leave 14,799 13,652

Performance pay due 3,743 3,025

Separations and redundancies 458 –

Other employee on-costs 1,259 1,133

Total current employee provisions 26,249 23,704

Non-current

Long service leave 4,173 3,813

Separations and redundancies – 401

Other employee on-costs 209 213

Total non-current employee entitlements 4,382 4,427

Total employee entitlements 30,631 28,131



$'000 $'000


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15. Provisions (cont.)

Employee provisions are expected to be settled in:

No more than 12 months 11,110 10,254

More than 12 months 19,521 17,877

Total employee entitlements 30,631 28,131

The classification of current employee provisions includes amounts for which there is not an unconditional right to defer settlement by one year, hence in the case of employee provisions the above classification does not represent the amount expected to be settled within 1 year of the reporting date.

Lease provisions

Current:

Provision for future lease escalation 281 198

Surplus lease space 264 93

Total current lease provisions 545 291

Non-current:

Provision for future lease escalation 1,309 1,129

Surplus lease space 345 286

Total non-current lease provisions 1,654 1,415

Total lease provisions 2,199 1,706

AGS currently has 5 agreements for the leasing of premises which have fixed increases.AGS has averaged the lease payments during the fixed-lease terms and accrued a liability which will reverse over the same period. AGS currently has 2 premises with space identified as surplus to requirements.Surplus lease provisions raised require estimates of the likelihood and extent of future potential rentals of the identified surplus space. AGS currently has nil agreements for the leasing of premises which have provisions requiring AGS to restore the premises to their original condition at the conclusion of the lease.AGS has made a provision to reflect the present value of this obligation.

Total current provisions 26,794 23,995

Total non-current provisions 6,036 5,842

Total provisions 32,830 29,837



$'000 $'000


Provision for future lease escalation

$'000

Surplus lease

space $'000

Total $'000

Carrying amount at 1 July 2014 1,327 379 1,706

Additional provisions made 462 294 756

Amounts used (199) (75) (274)

Unwinding of discount or change in discount rate – 11 11

Closing balance 2015 1,590 609 2,199


16. caSh flow reconciliation

Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement

Cash at year-end per cash flow statement 31,573 30,755

Balance sheet items comprising cash and cash equivalents

Cash at bank and on hand 31,573 10,948

Term deposits with an original maturity of greater than 3 months and less than 1 year

– 19,807

Total cash and cash equivalents 31,573 30,755

Profit after income tax 235 3,915

Adjustments for non-cash items

Depreciation and amortisation 3,423 2,739

Write-down of infrastructure, plant and equipment 809 –

Reversals of previous asset write-downs and impairments (296) –

Loss on disposal of assets 55 91

Movements in assets and liabilities:

Assets

Decrease / (increase) in receivables (3,468) 1,463

Decrease / (increase) in Deferred Tax Asset 6,489 340

Decrease / (increase) in prepayments 455 (413)

Liabilities

Increase / (decrease) in suppliers 3,902 (702)

Increase / (decrease) in tax provision 1,786 (1,087)

Increase / (decrease) in payables 1,514 (318)

Increase / (decrease) in employee provisions 2,015 (966)

Increase / (decrease) in lease incentives – (903)

Increase / (decrease) in lease provisions (649) 552

Net cash from operating activities 16,270 4,711



$'000 $'000


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17. client and third party fundS

AGS receives money in trust for clients usually pending settlement of clients’ transactions. These moneys are not available for legal practice operating purposes and are not recognised in the financial statements. Typically client funds are held for short periods of time for transactional purposes. Exceptionally funds may be held for a longer period where a settlement is delayed or title to funds is disputed. By arrangement with our client, interest may be payable to the client or the client’s nominee or on the instructions of a court. AGS does not pay interest to its clients except where an arrangement has been made to do so.

Australian Government Solicitor client and third party funds accounts

Balance at beginning of the period 25,269 6,771

Add receipts 241,056 252,162

266,325 258,933

Less payments 231,422 233,664

Balance at end of the period 34,903 25,269

18. contingent liabilitieS and aSSetS

AGS is aware of the potential for losses arising from its normal operations as a legal practice and has taken out insurance arrangements designed to ensure that the risk of adverse effect on the profits, assets and cash flow is immaterial to the continuing operations of AGS (Nil at 30 June 2014). At 30 June 2015, AGS considers the scale of unquantifiable or remote contingent losses or gains to be immaterial.

19. Senior management perSonnel remuneration



$'000 $'000


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2015 $

2014 $

Short-term employee benefits

Salary 3,968,938 4,025,121

Performance bonuses 287,417 403,287

Motor vehicle and other allowances 89,360 101,516

Total short-term employee benefits 4,345,715 4,529,924

Post-employment benefits

Superannuation 655,581 636,488

Total post-employment benefits 655,581 636,488

Other long-term benefits

Recreation leave 301,177 305,767

Long-service leave 97,116 98,596

Total other long-term benefits 398,293 404,363

Termination benefits – 274,872

Total 5,399,589 5,845,647

Note: The total number of senior management personnel that are included in the above table are 20 individuals (2014: 20 individuals)

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20. remuneration of auditorS

Amounts received or due and receivable by the auditors (1) for:

Audit of the financial statements 135 135

The AGS auditor is the Australian National Audit Office who has contracted KPMG to assist with the engagement.

No other services were provided by the Auditor-General during the reporting period.

21. financial inStrumentS

Note 21A – Categories of financial instruments



Notes $'000 $'000

Financial assets

Loans and receivables

Cash and cash equivalents and investments 9 31,573 30,755

Receivables – goods and services 10 24,612 23,613

Receivables – interest 10 – 247

Receivables – other debtors 10 8,293 5,577

Total loans and receivables 64,478 60,192

Total financial assets 64,478 60,192

Financial liabilities

Financial liabilities measured at amortised cost

Trade creditors 13 12,078 8,032

Dividend payable 13 163 1,849

Total financial liabilities measured at amortised cost 12,241 9,881

Total financial liabilities 12,241 9,881

Note 21B – Net gains or losses on financial assets

Loans and receivables

Interest revenue 4B 1,395 1,437

Net gains on loans and receivables 1,395 1,437

Net gains on financial assets 1,395 1,437

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$'000 $'000



Note 21C – Net gains or losses on financial liabilities

Financial liabilities measured at amortised cost

Trade creditors – –

Dividend payable – –

Net losses from financial liabilities – –

Note 21D – Fair value of financial instruments

Financial liabilities

Trade creditors 13 12,078 8,032

Dividend payable 13 163 1,849

Total 12,241 9,881

Financial assets: The fair value is the same as the carrying amounts in the balance sheet.

Note 21E – Credit risk

AGS is exposed to minimal credit risk as the majority of receivables are due from Commonwealth agencies. The maximum exposure to credit risk is the risk that arises from potential default of a debtor or non- collectability of debt amounts. This amount is equal to the total amount of Receivables totalling $32,802,000 ($29,437,000 in 2014). AGS has assessed the risk of the non-collectability of debt amounts and has allocated $458,000 ($488,000 in 2014) to an impairment allowance account.AGS has policies and procedures in place for the recovery of debt.AGS holds no collateral to mitigate against credit risk.AGS has no significant exposures to any concentrations of credit risk.

Credit quality of financial instruments not past due or individually determined as impaired:

Notes

Not past due nor

impaired2015

$'000

Not past due nor

impaired2014

$'000

Past due or

impaired2015

$'000

Past due or

impaired2014

$'000

Cash and cash equivalents and investments 9 31,573 30,755 – –

Receivables – goods and services 10 18,053 19,486 7,017 3,786

Receivables – interest 10 – 247 – –

Receivables – other debtors 10 8,293 5,577 – –

Total 57,919 56,065 7,017 3,786



Notes $'000 $'000

21. Financial instruments (cont.)





$'000 $'000

Ageing of financial assets that are past due but not impaired for 2015

Notes

0 to 30 days

$'000

31 to 60 days

$'000

61 to 90 days

$'000

90+ days

$'000

Total$'000

Receivables – goods and services 10 3,795 2,626 396 200 7,017

Total 3,795 2,626 396 200 7,017

Ageing of financial assets that are past due but not impaired for 2014

Notes

0 to 30 days

$'000

31 to 60 days

$'000

61 to 90 days

$'000

90+ days

$'000

Total$'000

Receivables – goods and services 10 2,524 660 335 267 3,786

Total 2,524 660 335 267 3,786

Note 21F – Liquidity risk AGS financial liabilities are payables and other interest-bearing liabilities. The exposure to liquidity risk is based on the notion that AGS will encounter difficulty in meeting its obligations associated with financial liabilities.AGS manages liquidity risk throughout the year by monitoring cash and deposit balances and the timing of the due date for major liabilities.Cash is invested at higher rates of interest to the extent possible to meet working cash requirements and the larger dividend and taxation obligations as they fall due.

The following table illustrates the maturities for non-derivative financial liabilities 2015 Within 1 to 5 > 5 1 year years years Total Notes $'000 $'000 $'000 $'000Trade creditors 13 12,078 – – 12,078

Dividend payable 13 163 – – 163

Total 12,241 – – 12,241

The following table illustrates the maturities for non-derivative financial liabilities 2014

Within 1 to 5 > 5 1 year years years Total Notes $'000 $'000 $'000 $'000Trade creditors 13 8,032 – – 8,032

Dividend payable 13 1,849 – – 1,849

Total 9,881 – – 9,881 AGS has no derivative financial liabilities in both the current and prior year.


Note 21E – Credit risk (cont.)



22. fair value meaSurementSThe following tables provide an analysis of assets and liabilities that are measured at fair value.The different levels of the fair value heirarchy 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 22A – Fair value measurements, valuation techniques and inputs usedLevel 2 and 3 fair value measurements – valuation technique and the inputs used for assets and liabilities in 2015.1



$’000 $'000

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Fair value measurements at the end of the reporting

period

For levels 2 and 3 fair value measurements

Non-financial assets3

2015

$'000

2014

$'000

Category (Level 1, 2

or 34)Valuation

technique(s)2 Inputs used

Range (weighted average)

Sensitivity of the fair value measurements in unobservable

inputs

Leasehold Improvements

12,282 13,721 Level 3 Depreciated Replacement Cost (DRC)

Replacement Cost New (price per square metre)

Consumed economic benefit/ Obsolescence of asset

6.7% – 10.4% (6.7%) per annum

A significant increase (decrease) in this consumed economic benefit/ obsolescence of the asset would result in a significantly lower (higher) fair value measurement.


2,984 4,515 Level 2 Market Approach

Adjusted market transactions

Library 296 287 Level 2 Market Approach

Adjusted market transactions

(15.0%) – 10.0%

A significantly higher (lower) market transaction may result in a significantly higher (lower) fair value measurement.


1,327 – Level 3 Depreciated Replacement Cost (DRC)

Replacement Cost New

Consumed economic benefit/ Obsolescence of asset

6.7% – 50.0% (17.1%) per annum

A significant increase (decrease) in this consumed economic benefit/ obsolescence of the asset would result in a significantly lower (higher) fair value measurement.

Total Non-financial assets

16,889 18,523

1. AGS did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2015.

Note 21G – Market risk AGS holds basic financial instruments that do not expose AGS to market risks. AGS is not exposed to significant ‘Currency risk’ or ‘Other price risk’.Interest rate riskAGS Term Deposits are undertaken in consideration of the interest rate risk associated with changing market interest rates. The only interest-bearing items on the statement of financial position were interest-bearing liabilities in relation to lease incentives. The amortisation schedule for lease incentives is fixed over the term of the lease and there is no associated interest expense.






$'000 $'000

Note 22A – Fair value measurements, valuation techniques and inputs used (cont.)

2. There have been changes to the valuation techniques for assets in the infrastructure, plant and equipment class. In instances where sufficient observable inputs, such as market transactions of similar assets, were (not) identified in this financial year, the valuation technique has changed from a DRC (Market) approach to a Market (DRC) approach.

3. Fair value measurements AGS assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all NFAs is considered their highest and best use.

4. Recurring and non-recurring Level 3 fair value measurements – valuation processes AGS tests the procedures of the valuation models as an asset materiality review at least once every 12 months (with a formal revaluation undertaken every 3 years). If a particular asset class experiences significant and volatile changes in fair value (ie where indicators suggest that the value of the asset class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, regardless of the timing of the last specific valuation. AGS engaged Australian Valuation Services (AVS) to undertake a full revaluation and confirm that the models developed comply wth AASB 13.

Significant Level 3 inputs utilised by AGS are derived and evaluated as follows:

Infrastructure, plant and equipment – Adjusted Market Transactions

The significant unobservable inputs used in the fair value measurement Library assets relate to the market demand and valuers judgment to determine the fair value measurement of these assets. A significant increase (decrease) in this input would result in a significantly higher (lower) fair value measurement.

Leasehold improvements, infrastructure, plant and equipment – Consumed economic benefit / Obsolescence of the asset

Assets that do no transact with enough frequency or transparency to develop objective opinions of value for observable market evidence have been measured utilising the cost (DRC) approach. Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic benefit / asset obsolescence (accumulated depreciation). Consumed economic benefit / asset obsolescence has been determined based on professional judgment regarding physical, economic and external obsolescence factors relevant to the asset under consideration.

The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset.

Note 22B – Level 1 and Level 2 transfers for recurring fair value measurements

Recurring fair value measurements transferred between Level 1 and Level 2 for assets and liabilitiesThere have been no transfers of NFAs between Level 1 and 2 of the hierarchy during the year.AGS’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

Note 22C – Reconciliation for recurring Level 3 fair value measurements

Recurring Level 3 fair value measurements – reconciliation for assets

Leasehold improvements

Other infrastructure, plant and equipment Total

2015 $'000

2014 $'000

2015 $'000

2014 $'000

2015 $'000

2014 $'000

As at 1 July 13,721 – 4,802 – 18,523 –

Accumulated Depreciation / Valuation Adjustment (1,458) 13,721 (1,784) 4,515 (3,242) 18,236

Purchases 19 – 1,644 – 1,663 –

Disposals – – (55) – – –

Transfer into Level 3 – – – – – –

Total as at 30 June 12,282 13,721 4,607 4,515 16,944 18,236

PART 4appendixes



Forums and publications FORUMS

Property and Infrastructure Forum, Canberra, 13 August 2014

Employment Law Forum, Canberra, 15 October 2014

Administrative Law Forum, Canberra, 6 November 2014

Information Technology Forum, Canberra, 26 February 2015

Competition and Consumer Law Forum, Canberra, 12 March 2015

FOI and Privacy Forum, Melbourne, 26 March 2015

FOI and Privacy Forum, Canberra, 1 May 2015

Civil Penalties Forum, Canberra, 25 June 2015

GOVERNMENT LAW GROUP MEETINGS

Is that really work?, Canberra, 17 September 2014

A rekindled romance? The High Court and procedural fairness, Sydney, 21 October 2014

Employees who won’t work and supervisors who won’t manage, Canberra, 19 March 2015

At what cost? Compensating privacy breaches, Sydney, 26 March 2015

What football can teach us, Canberra, 30 April 2015

Managing risk under the PGPA Act, Canberra, 19 May 2015


PUBLICATIONS

Express lawNo. 235 High Court rules on apprehended bias (26 June 2015)

No. 234 Privacy determination – need to scrutinise law enforcement requests before disclosing personal information (27 May 2015)

No. 233 New APS Award means change for SES employees (26 May 2015)

No. 232 Metadata is ‘personal information’ under the Privacy Act 1988 (Cth) (25 May 2015)

No. 231 Parliament passes the Tribunals Amalgamation Bill 2015 (21 May 2015)

No. 230 High Court rules on ‘Royal prank phone call’ case (10 March 2015)

No. 229 Energy Consumers Australia Ltd, a national energy consumer advocacy body, established on 30 January 2015 (6 March 2015)

No. 228 Fair Work Commission provides guidance on interpreting enterprise agreements (8 December 2014)

No. 227 Emissions Reduction Fund ready to commence (5 December 2014)

No. 226 Court allows appeal against decision upholding public interest immunity (PII) over complaint and investigation records (6 November 2014)

No. 225 Recent decision indicates likely compensation range for breach of privacy (23 September 2014)

No. 224 Serious invasions of privacy in the digital era: ALRC tables final report (12 September 2014)

No. 223 Implied terms of mutual trust and confidence and good faith in employment contracts: what do they mean for Commonwealth agencies? (11 September 2014)

No. 222 Online Copyright Infringement Discussion Paper: extended deadline for submissions (1 September 2014)

No. 221 Toyota Motor Corporation Australia Ltd v Marmara (8 August 2014)

No. 220 First decision on termination of employment for ‘loss of an essential qualification’ – Defence defends requirement to maintain a security clearance (28 July 2014)

Legal briefingNo. 106 Dealing effectively with unsatisfactory performance in the Australian Public Service

(15 April 2015) This issue supersedes Legal briefing No. 92

No. 105 Indemnities in Commonwealth contracting (12 May 2015) This is an updated version of Legal briefing No. 93

No. 104 Misconduct in the Australian Public Service (15 October 2014)

Litigation notesNo. 25 Application of Barbaro: resolving civil penalty proceedings by agreement (19 June 2015)

No. 24 Further challenge to the Commonwealth’s power to contract and spend money on school chaplains; ACT same-sex marriage law inconsistent with the Commonwealth Marriage Act; Criminal property forfeiture scheme valid – no acquisition of property on unjust terms; High Court holds valid the scheme to designate regional processing countries; Validity of immigration detention revisited; High Court declares New South Wales election funding laws invalid (6 November 2014)


Fact sheetsNo. 26 Conflicts of interest for tenders, funding programs and other government initiatives

(updated February 2015)

No. 25 Confidentiality considerations for tenders, funding programs and other government initiatives (updated February 2015)

No. 22 Hidden costs in leasing (updated February 2015)

No. 14 Avoiding common legal pitfalls in contract management (updated November 2014)

No. 13 Tips for new corporate Commonwealth entities (updated November 2014)

No. 11 Corporate Commonwealth entities – authorisations and delegations (updated December 2014)

No. 10 Legal issues to consider for new programs (updated November 2014)

No. 9 Probity and process issues for property and infrastructure projects (updated February 2015)

No. 7 Commonwealth Procurement Rules (updated December 2014)

No. 5 Negotiating indemnities in leases (updated November 2014)

No. 2 Probity and legal process advice (updated February 2015)

Last week in Parliament – new subscription email in 2014 Issue 27 22–25 June 2015

Issue 26 15–18 June 2015

Issue 25 1–4 June 2015

Issue 24 25–28 May 2015

Issue 23 12–14 May 2015

Issue 22 23–26 March 2015



Issue 19 23–26 February 2015

Issue 18 9–12 February 2015

Issue 17 1–5 December 2014

Issue 16 24–27 November 2014

Issue 15 14–20 November 2014

Issue 14 27–31 October 2014

Issue 13 20–23 October 2014

Issue 12 30 September–2 October 2014

Issue 11 22–25 September 2014

Issue 10 1–4 September 2014

Issue 9 26–28 August 2014

Issue 8 14–18 July 2014

Issue 7 7–10 July 2014


FOI Chatspace – new subscription email in 2015 No. 3 Notice of decision – you don’t always have to disclose the existence of documents,

Louise Futol, 26 June 2015

No. 2 Creating documents and s 17, Charine Bennett, 10 April 2015

No. 1 Practical reasons and unreasonably large requests, Justin Davidson, 20 March 2015

BooksAGS 30: Recollections, reflections, a souvenir booklet commemorating 30 years of AGS, launched at AGS Canberra on 27 August 2014

Australia’s Constitution (pocket edition), revised and reprinted (co-published with the Parliamentary Education Office), August 2014

AGS by those who know* (* our clients) published in our new promotional pack, February 2015

VODCASTSRichard Harding, ‘Managing disclosures under the PID Act’, 24 November 2014

WEBSITEVolume 4 of selected Legal Opinions 1946–50 was published on www.legalopinions.ags.gov.au released on 25 June 2015


Compliance index The index below shows compliance with information requirements contained in the PGPA Act and the Commonwealth Authorities (Annual Reporting) Orders 2011.

Section 7AB of the Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Rule 2014 provides that the Commonwealth Authorities (Annual Reporting) Orders 2011, despite being repealed, continue to apply with respect to the information requirements for the AGS 2014–15 annual report.

Commonwealth Authorities (Annual Reporting) Orders 2011 (unless otherwise denoted)

Annual report page

Audited financial statements Section 43(4) of the PGPA Act

53–83

Committees Clause 14 38–39

Community service obligations Clause 20 44–46

Dividends Clause 20 19

Enabling legislation Clause 10 36

Environmental performance and environmentally sustainable development

Clause 12 45–46

Ethics framework Clause 14 7

Financial conditions Clause 20 18–19

Freedom of information Clause 12 40

Functions and powers Clause 10 6, 36–37

Government policy orders made by the Finance Minister under s 22 of the PGPA Act

Clause 12 37

Indemnities and insurance premiums for officers Clause 19 39–40

Information about subsidiaries Clause 18 Not applicable – AGS did not have any subsidiaries

Judicial decisions and decisions of administrative tribunals

Clause 17 37

Key activities and changes Clause 16 3, 18–19

Letter of transmittal (approval of annual report of operations)

Clause 6 1

Location of major activities and facilities Clause 14 ii

Ministerial directions Clause 12 37


Commonwealth Authorities (Annual Reporting) Orders 2011 (unless otherwise denoted)

Annual report page

Objectives Clause 10 7

Operational and financial results Clause 16 18–19

Organisational structure Clause 14 40

Related entity transactions Clause 15 Not applicable – the accountable authority for AGS was a sole person

Reports made by the Auditor-General, Parliamentary committee, Commonwealth Ombudsman or Office of the Australian Information Commissioner

Clause 17 37

Responsible Minister Clause 11 37

Risk management Clause 14 39

Significant events under s 19(1)(c), (d) or (e) of the PGPA Act

Clause 16 37

Statement on governance practices Clause 14 36–39

Workplace health and safety Clause 12 32


AAbbot Point coal terminal, 14

Aboriginal and Torres Strait Islander people see Indigenous Australians

about AGS, 6

accountability and management, 36–47

Adani Mining, 14

address, ii

Administrative Appeals Tribunal matters, 20

administrative law, 19, 20–21

advertising and market research, 40

Advisory Board, AGS, 38 indemnity, 39

Afghanistan, Defence Force deaths in, 11

Air Warfare Destroyer Project, 48

Albury–Wodonga Corporation, 15

alumni, AGS, 30

appropriations, 6, 37

APS Values and Code of Conduct, 28

APS Work Level Standards, 28

areas of expertise, 6

asylum seekers, offshore processing of, 11, 14, 49

Attorney-General as First Law Officer, 7, 10 interventions and notices, s 78A and s 78B, 11 as shareholder Minister, 6, 18, 36, 37

Attorney-General’s Department (AGD), 6, 10 consolidation with, 2, 18, 22–23, 27–28

Audit Committee, 38

audits, 37

Australia Day Awards, AGS, 50–51

Australian Communications and Media Authority, 12

Australian Competition and Consumer Commission, 14

Australian Crime Commission, 14–15

Australian Electoral Commission, 15

Australian Federal Police, 11, 14, 20, 21

Australian Government Solicitor, 2 see also Govey, Mr Ian

Australian Public Service, transition to, 2

Australian Security Intelligence Organisation, 11, 19, 20

Australian Sports Anti-Doping Agency, 16–17, 21

awards and recognition, 13, 44

Bblogs, 26

books, 89

Brandis, the Hon George QC, 37

broadcasting matters, 9, 12

Bureau of Meteorology, 15

business efficiency, 8

business operations, 6–33

business strategies and outcomes, 18, 32–33

business system improvements, 32–33

CCabinet matters, 10

career development see professional development

cases see litigation; significant matters 2014–15

change management, 28

Chief Executive Officer, AGS, 2, 23, 36–37 indemnity, 39 review 2014–15, 3–4

Chief General Counsel, AGS, 40

child sexual abuse royal commission, 11, 49

cigarette plain packaging, 11, 21, 49

civil penalty proceedings, 14

clean energy legislation, 12

client care Confidentiality Protocol, 23 consolidation with AGD, 2, 22–25, 26 outcomes against corporate plan, 22–25 principles, 26 satisfaction rate, 8 services, 22–25 survey, 23, 26

client confidentiality obligations, 23

client networks, 24–25

client strategies and outcomes, 22–25

coal exploration licences, 14

Code of Conduct, AGS, 7

ComCare, 21 notifications to, 32

Comcover, 14

Commercial, AGS, 6

Commercial notes publication, 24

commercial operation, 2, 6

Commissioner of Taxation, 12

Commonwealth Contracting Suite, 41

Commonwealth Lease Divestment Handbook, 41

Commonwealth National Lease suite, 41

Index


Commonwealth trading enterprise function, 2

communication activities and products, 23–24, 86

community service obligations, 44

competitive neutrality payments, 18

competitors, 3, 18

Confidentiality Protocol, 23

consolidation with Attorney-General’s Department, 2, 18 client consultation on, 22–23 staff consultation on, 27–28

constitutional litigation, 10, 11–12

construction projects, advice on, 15

contact details, ii

contract documentation, advice on, 41

Cormann, the Hon Mathias, 37

coronial inquests, 11

Corporate Commonwealth Entities Legal Network, 24–25

corporate governance, 36–43

corporate objectives and strategies, 22–34

Corporate Plan 2014–15, 22, 37

corporate savings, 18, 32

CrimTrac, 15

Ddata retention obligations, 15

Defence Housing Australia, 48

Defence Materiel Organisation, 15

Department of Defence, 11, 15

Department of Finance, 41

Department of Foreign Affairs and Trade, 15, 20

Department of Health and Ageing, 21

Department of Immigration and Border Protection, 11, 14

Department of Industry and Science, 42

Department of the Environment, 34

Director-General of Security, 12

Dispute Resolution, AGS, 6, 12, 20–21

dividends paid, 7, 8, 18, 19

document management system, 32–33

EEastman, David, retrial of, 14

eLearning modules, staff, 28

electronic newsletters, 24, 87–89

Elite practice management system, 33

email address, ii

emergency procedures, 32

employee strategies and outcomes, 27–32

employees Enterprise Agreement, 2, 28 job classifications, 2, 27–28 new, 27, 28 profile, 31 role descriptions, 27–28 satisfaction, 8 survey, 32 training, 23, 25, 28–30, 32 transfer to AGD, 2 turnover, 8, 32 see also support staff

employment arrangements, changes to, 27

Employment Handbook, 27, 28

employment policies review, 28

energy market reforms, 15, 42

enquiries, 11

Enterprise Agreement, AGS, 2, 28

environmental performance, 45–46

environmental policy and initiatives, 46

Essendon Football Club, 16–17

ethics and values, 7

events, 22, 23, 29

Express law bulletin, 24, 87

external affairs power, advice on, 10

external governance, 37

Ffact sheets, 24, 28, 88

false imprisonment, 49

farming business loans, 15

Federal Court matters, 12, 14, 16–17, 20

financial management and outcomes, 3, 8, 18–19

financial overview, 3, 8, 33

financial statements, 53–83

First Law Officer, support for, 6, 7, 10–15

FOI Chatspace bulletin, 89

foreign fighters legislation, 3, 15

forums, 3, 22, 23, 24, 29

forums and training, 23–24, 29, 86

freedom of information, 40 exemption from requirements, 23

full-time employees, 31

functions, 36

Future Submarine Program, 48

GG20 Leaders’ Summit, 15

gender of employees, 31

Global Infrastructure Hub, 15

goverance structure, 39


governance committees, 39

government business enterprise function, 2, 3, 7, 18–21

Government Law Group seminars, 3, 25, 29, 86

government legal services review, 2, 18, 27

Govey, Mr Ian, 36–37 as Australian Government Solicitor, 2 see also Chief Executive Officer

graduate program, 25, 30, 32

HHigh Court matters, 9, 11–15 see also litigation; significant matters 2014–15

Hird, Mr James, 16–17

Home Insulation Program royal commission, 11, 21

HR Working Group, 28

human resources planning, 27, 28

Iillegal immigrants, 12

immigration detention and processing, 11, 14, 49

immigration matters, 3, 11, 12, 14

in-house counsel practice, 20–21

indemnities and insurance premiums, 39–40

Independent Commission Against Corruption NSW, 12, 14

Indigenous Australians, 45, 46

Indigenous constitutional recognition, 15

Indigenous employees, 46

information technology, 32–33

insurance premiums, 39

internal governance, 38–40

internal supervision, 27, 30

International Communications Network, 15

international law, 10

international pro bono work, 45

international treaties, 10, 11

interventions under s 78A, 11, 14

Jjob classifications, 2, 27–28

judicial decisions and reviews by outside bodies, 37

Judiciary Act 1903, 11, 36 governance changes under, 2 ministerial directions under, 37 s 78A interventions and s 78B notifications, 11

KKhazei, Hamid, 11

LLast Week in Parliament publication, 24, 88

Lawyer Development Program, 27, 30

Leaders Conference, AGS, 28

leadership development, 27, 28–30

leases and sub-leases, advice on, 41, 48

Legal briefing publication, 24, 87

legal costs control, 23, 26

Legal Opinions 1946–50, 89

legal professional privilege matters, 21

Legal Services Directions, 10, 15

Legal Services Multi-Use List, 2

legal services review, government, 2, 18, 27

Legal Support Program, 27, 30

Legal Support Review 2013, 27

legislative framework, 36

legislative proposals, advice on, 10, 15

library, AGS, 25

Lindt cafe siege, 11, 49

litigation, 11–15

Litigation notes newsletter, 87

live cattle exports, 49

MMalek Fahd Islamic School, 12

management see accountability and management

mandate, 7

Manus Regional Processing Centre, 11

market position, 18

market share, 3

market trends, 18

Martin Place siege, 11, 49

Medibank Private sale, 15, 48

Medical Board of Australia, 11

meeting attendance, management committee, 38

membership of management committees, 38

mentoring program, 25, 27

mining, 12, 14

Minister for Finance (shareholder Minister), 6, 37

Minister for Immigration and Border Protection, 12, 14

Minister for the Environment, 14

ministerial directions, 37

Ministers see shareholder Ministers

model litigant obligation, 10

Muirhead Project, 48


NNAIDOC Week activities, 46

national energy laws, 42

National Practice Orientation program, 27

national security, 10, 12, 14, 20

networks, client, 24–25

new employees, 27, 28

new Sydney airport, 3, 15, 48

newsletters, 24, 86

Nitschke, Dr Philip, 11

non-contestable (tied) work, 7, 10, 11–12

Norfolk Island self-government, 15

notifiable incidents, 32

notifications under s 78B, 11

number of employees, 31

OObeid, Moses and Paul, 14

Office of General Counsel, AGS, 6, 12

Office of International Law, AGD, 6, 10

offices, ii

offshore processing of asylum seekers, 11, 14, 49

One-Stop Shop for environmental approvals, 34

organisational chart, 40

orientation for new staff, 27, 28

outcomes against corporate plan, 22–34

outlook for 2015–16, 3–4

outposted lawyers, 2, 20–21, 23, 24

Ppart-time employees, 31

payments to shareholders, 7, 8, 18, 19

people-smuggling, 12

People Strategy Branch, 28

performance measures, 18, 19

performance overview, 6, 8, 18

permanent protection visas, 14

personal leave, 31

petrol retailer information service, 48

pharmaceutical benefits scheme recoveries, 21

Philip Morris Asia Limited, 11

policy advice, 15

political donations, 12

practice areas, 6

practice groups, 6, 27

practice leaders, 40

practice management system, 33

practice strategies and outcomes, 25–27

pricing arrangements, 23

private firms, briefs from, 21

pro bono work, 25, 44–45, 46

proceeds of crime, 15

procurement and grants, advice on, 15, 41

professional development, 25, 28–30

professional indemnity, 39

professional standards, 7

profits, 8, 18, 19

programs, advice on, 15

progress reports to Ministers, 37

Prohibition on Incitement of Hatred Bill 2015, 15

property and leasing, 41, 48

Public Governance, Performance and Accountability Act 2013, 15, 36

public interest immunity, 14

publications, 23–24, 87–89

purchasing see procurement and grants, advice on

Qquarterly progress reports, 37

Queensland Rail, 12

RReconciliation Action Plan, 46

records management system, 32–33

recruitment, 32

remuneration of committee members, 38

Reserve Bank of Australia, 15

responsible Ministers see shareholder Ministers

return on equity, 19

revenue, 8, 19

review of 2014–15, 3–4

risk management, 39

role descriptions, 27–28

Royal Commission into Institutional Responses to Child Sexual Abuse, 11, 49

Royal Commission into the Home Insulation Program, 11, 21

Sscholarships, 46

scorecard, AGS, 19

section 78A and 78B notifications and interventions, 11

security assessments, 10, 11, 12, 20

seminars, 3, 23, 25

senior leaders, 40

senior management committees, 38–39

shareholder Ministers, 6, 18, 36, 37

shareholder return, 7, 8, 18, 19

Shen Neng 1, 49

significant events, 37

significant matters 2014–15, 48–49

Smaller Government Reform Agenda, 2

social responsibility, 44–46

Solicitor-General, 6

sports anti-doping, 16–17, 21

staff see employees; support staff

statement of corporate intent, 37

strategies, 18

structure, 6

supervision arrangements, 27, 30

support staff, 22, 27, 30

TTarkine National Coalition, 14

taxation matters, 12, 15

telephone numbers, ii

terrorism prevention, 20

tied work, 7, 10, 11–12, 23

tobacco plain packaging, 11, 21, 49

Today FM, 9

training courses, client see forums and training

training, employee see employees; professional development

travel documents system, advice on, 15

treaties, international, 10, 11

tribunals, 11

Uunlawful deportation, 14

Vvalues, 7

visa matters, 12, 14

vision, 7

vodcasts, 89

WWater Act 2007, decision on, 12

website, ii information and resources on, 86–89

Williams decision, 3, 15

winter clerk program, 30

work health and safety, 32

workers’ compensation claims, 32

workforce profile, 31

workshops, 30

workshops, staff, 30

WorkSite document management system, 32–33

World Trade Organization, 11


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Annual report 2014–15

www.ags.gov.au

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