Chapter 1Introduction
1.1The Senate Foreign Affairs, Defence and Trade Legislation Committee (the Committee) is responsible for examining the annual reports of the departments and agencies in the Defence and Foreign Affairs and Trade portfolios.
1.2This report is the second report of 2025 and provides an overview of the Committee’s examination of annual reports tabled or presented out of sitting between 1 November 2024 and 30 April 2025.
1.3The Committee's first report was tabled on 25 March 2025. Copies of this and other Committee reports can be obtained from the Senate Table Office or online at the Committee’s webpage.
Terms of reference
1.4Under Standing Order 25(20), the Committee is required to:
(a)Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory.
(b)Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on other annual reports which it selects for more detailed consideration.
(c)Investigate and report to the Senate on any lateness in the presentation of annual reports.
(d)In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate.
(e)If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates.
(f)Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June that year.
(g)Draw the attention of the Senate to any significant matters relating to the operations and performance of bodies furnishing the annual reports.
(h)Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.
Allocated portfolios
1.5In accordance with the resolution of the Senate on 23 July 2025, the Committee has oversight of the following portfolios:
Defence, including Veterans’ Affairs; and
Foreign Affairs and Trade.
1.6Further information on the range of Commonwealth entities and companies within the Committee’s portfolio allocation is available on the Department of Finance’s (Finance) website.
Purpose of annual reports
1.7The primary purpose of annual reports is to provide accountability to the Parliament, stakeholders and other interested parties on the operations and performance of public sector departments, agencies, companies and statutory office holders.
1.8Annual reports are a key publication under the Commonwealth Performance Framework where Commonwealth entities and companies are required to report on actual performance against planned performance information. Additionally, annual reports are an important reference document and form a critical part of the historical record.
Reports examined
1.9During the reporting period 1 November 2024 and 30 April 2025, eight annual reports were presented to the Parliament and referred to the Committee for examination. A full list of the reports presented during the reporting period can be found at Appendix 1. This report examines annual reports from bodies included under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and those which are prepared by statutory offices or office holders. The Committee selected the Australian Strategic Policy Institute (APSI) annual report 2023–24 for further examination.
Assessment of annual reports
1.10Senate Standing Order 25(20) requires the Committee to examine reports referred to the Committee to determine whether they are timely and ‘apparently satisfactory’. In forming its assessment of whether the reports are apparently satisfactory, the Committee must consider whether the reports comply with the relevant legislation and requirements for the preparation of annual reports in forming its assessment.
Annual reporting requirements
Public Governance, Performance and Accountability Act 2013
1.11The PGPA Act is the legislative basis of the Commonwealth Performance Framework which governs how the Commonwealth public sector uses and manages public resources. It sets out the key requirements for governance, performance reporting and accountability that is required by Commonwealth entities and companies.
1.12The different governance structures and a summary of the annual reporting requirements for these bodies for the purposes of the PGPA Act is set out in Appendix 2.
Annual reports
1.13Section 46 of the PGPA Act sets out the annual reporting requirements in relation to Commonwealth entities and states annual reports must comply with requirements prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).
1.14Section 97 of the PGPA Act sets out the annual reporting requirements for Commonwealth companies, including those of the Corporations Act 2001 and any additional information prescribed by the rules.
Corporate plans and annual performance statements
1.15The Commonwealth Performance Framework also includes the requirement for Commonwealth entities and companies to prepare and publish corporate plans each year, pursuant to sections 35 and 95 of the PGPA Act. Under section 39 of the PGPA Act, Commonwealth entities must prepare an annual performance statement in the annual report. Entities use the annual performance statement to report on results being achieved against targets, goals and measures established at the beginning of a reporting year in its corporate plan, in addition to key performance indicators set out in portfolio budget/additional estimates statements.
1.16It is noted that Commonwealth companies are not required to prepare an annual performance statement. However, companies are required to include in their annual report a report on actual performance results achieved against the performance information published in their corporate plan.
Public Governance, Performance and Accountability Rule 2014
1.17The PGPA Rule sets out the detailed mandatory requirements for the preparation of corporate plans, annual performance statements and annual reports for Commonwealth entities and, whenever relevant, Commonwealth companies.
1.18Finance publishes resource management guides for Commonwealth entities on a wide range of topics, including on the annual reporting obligations under the PGPA Act and mandatory requirements for the content of annual reports as prescribed by the PGPA Rule.
Statutory office holders and statutory bodies
1.19Statutory office holders are those engaged or employed under an Act which may prescribe annual reporting requirements pursuant to the office. It is also noted that there may be reporting requirements in the enabling legislation for statutory bodies (which may also be Commonwealth entities).
Non-statutory bodies
1.20Non-statutory bodies are established by a Minister. Annual reporting requirements for non-statutory bodies are contained in the government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory Bodies, dated 8 December 1987.
Non-reporting bodies
1.21Standing Order 25(20)(h) requires the Committee to inquire into, and report on, any bodies which do not present annual reports to the Senate but should present such reports.
1.22The Royal Australian Navy Central Canteens Board (Navy Canteens Board) provided its annual report outside of the timeframe for inclusion in this Annual report (No. 2 of 2025). This will be discussed further under 'timeliness'.
Timeliness
1.23Under Standing Order 25(20)(c), the Committee is required to investigate and report to the Senate any lateness in the presentation of annual reports. The Committee notes that different reporting timeframes apply to different categories of bodies. These are set out in Appendix 3.
Review of timeliness of reports examined
1.24The Committee considers the timely presentation of annual reports to the Parliament to be an important element of accountability. There are two elements regarding the timeframe for the preparation and presentation of annual reports: the provision of the report to the Minister and the presentation of the report to the Parliament. Both of these elements were examined by the Committee in investigating any lateness in the presentation of annual reports.
1.25Appendix 1 lists the annual reports referred to the Committee for examination tabled between 1 November 2024 and 30 April 2025. This table includes the dates the reports were tabled in the Senate (or received by the President out of session) and the House of Representatives. For the purposes of the Committee’s examination of timeliness, the earlier date is taken as the presentation date to the Parliament. The table also includes the dates the reports were submitted to, and received by, the Minister, if available.
1.26The Committee notes the Navy Canteens Board annual report 2023–24 was submitted to and received by the Minister on 23 June 2025. It was subsequently tabled in the House of Representatives on 23 July 2025 and the Senate on 28 July 2025 falling well outside the time for consideration in this report. The annual report from the Navy Canteens Board will be examined in future reports of the Committee.
1.27All other annual reports examined in this reporting period met the timeliness provision required by the PGPA Act and the Committee thanks these agencies and Commonwealth entities for tabling their annual reports within the relevant statutory period.
Statutory office/office holders
1.28The annual reports of statutory office/office holders follow less prescriptive tabling requirements (see Appendix 3). While the Minister, upon receipt of the annual report, must present the report to the Parliament within 15 sitting days, the preparation and furnishing of the report to the Minister is required 'as soon as practicable' or 'as soon as possible' after the end of the reporting period. The tabling timeframe for the reports falling into this category were considered to have generally met the legislative requirements.
Senate debate
1.29In accordance with Standing Order 25(20)(d), the Committee is required to take into account any relevant remarks about the reports made in debate in the Senate. The Committee notes that none of the annual reports examined in this report have been the subject of comments or debate at the time of preparing this report.
Assessment of reports
1.30Under Standing Order 25(20)(a), the Committee is required to examine the annual reports of departments and agencies and report to the Senate on whether they are apparently satisfactory. In its examination of the annual reports referred, the Committee found them to be of a satisfactory standard and largely adhering to the relevant requirements. The Committee considers the reports examined to be apparently satisfactory.