A. Our Portfolio
Agencies in the Prime Minister and Cabinet portfolio produce a range of outputs essential for a well coordinated, efficient and accountable public administration supported by a values-based Australian Public Service.
The Department of the Prime Minister and Cabinet (PM&C) is a department of state and the principal coordination agency in the Prime Minister and Cabinet portfolio. In addition to PM&C, at 30 June 2008 there were 10 other agencies in the PM&C portfolio, as well as the National Australia Day Council—a Commonwealth company subject to the provisions of the Commonwealth Authorities and Companies Act 1997(the CAC Act).
At the beginning of 2007–08, there were six other agencies in the portfolio. The Administrative Arrangements Order of 3 December 2007:
- established the Department of Climate Change as a separate department of state within the portfolio
- transferred the Office of the Renewable Energy Regulator to the Department of Climate Change from the former Environment and Water Resources portfolio
- transferred to the PM&C portfolio the Australian Institute of Family Studies (from the Families, Housing, Community Services and Indigenous Affairs portfolio), and
- transferred to the PM&C portfolio the Office of the Privacy Commissioner (from the Attorney-General’s portfolio).
The Hon Kevin Rudd MP became Australia’s 26th Prime Minister on 3 December 2007. At 30 June ;2008 the Prime Minister was assisted by:
- Senator the Hon John Faulkner as Cabinet Secretary and Special Minister of State
- Senator the Hon Penny Wong as Minister for Climate Change and Water
- The Hon Anthony Byrne MP as Parliamentary Secretary to the Prime Minister
- The Hon Maxine McKew MP as Parliamentary Secretary for Early Childhood Education and Childcare, and
- Senator the Hon Ursula Stephens as Parliamentary Secretary Assisting the Prime Minister for Social Inclusion.
Figure 2.1: Ministers and portfolio agencies at 30 June 2008
B. Our Department
What we do
Our primary role is to provide advice to, and support for, the Prime Minister and the Cabinet. In serving them, we undertake a variety of activities and engage in a broad range of issues. The principal matters we deal with are outlined here.
Policy advice and administrative support to the Prime Minister: We provide strategic advice to the Prime Minister and the Cabinet Secretary on a range of issues, including all matters considered by Cabinet. We take a particular responsibility for policy coordination across government, working with central and line agencies to ensure the Prime Minister, the Cabinet Secretary and the Cabinet are given advice that is properly coordinated.
Assistance to the Cabinet, its committees and the Federal Executive Council: We ensure that the Prime Minister, the Cabinet Secretary and the Cabinet are given accurate, clear and timely advice that takes into account the views of all portfolios. We provide secretariat support for meetings of the Cabinet and the Federal Executive Council. We also manage processes that facilitate the decision-making role of Cabinet and monitor the implementation of Cabinet decisions.
Coordination of government administration: We provide services to the Prime Minister, the Cabinet Secretary and the Australian Government to enable the business of government to be managed in an efficient, effective and coordinated manner. Our department is the primary source of advice on machinery of government matters and interaction between the parliament and the public service, including coordination of the government’s legislation program.
Intergovernmental relations and communications with state and territory governments: We actively advance cooperation between the Commonwealth Government and other governments in Australia by carrying forward an extensive range of work through the Council of Australian Governments (COAG), including a revitalised National Reform Agenda. We coordinate arrangements and provide secretariat support for meetings of COAG and advise the Prime Minister on the implications of proposals for Commonwealth–state relations.
Government ceremonial and hospitality: We provide high-level support for major events, such as visits by heads of state, ceremonies and state occasions, and coordinate the logistical arrangements for the Prime Minister’s overseas visits.
Australian honours and symbols policy: We are responsible for policy advice, operational support and awareness-raising in relation to the Australian honours system and on national symbols.
Support services: We provide a range of support services to the Prime Minister, the Cabinet Secretary, the ministerial team and the government. These services include assisting the Leader of the House and the Manager of Government Business in the Senate to schedule government business in parliament. We provide a range of support services to the office of the Prime Minister, the Cabinet Secretary and the ministerial team. We support the operations of the Prime Minister’s official residences and provide staffing and administrative services to former Governors-General as well as advice and support on arrangements for the Governor-General designate. In addition, we provide the information technology, human resource and financial management support, record keeping and the physical working environment to support our staff and taskforces.
To contribute to the good governance of Australia by supporting the Prime Minister, the Cabinet Secretary and the Cabinet in the effective development and delivery of policy across the whole-of-government. To achieve that goal by demonstrating excellence in leadership in the Australian Public Service.
Our values: We are strongly committed to the Australian Public Service (APS) values and the Code of Conduct set out in the Public Service Act 1999. We place a high priority on:
- professionalism, commitment and excellence in management
- timely, responsive and high-quality service to the Prime Minister, the Cabinet Secretary and other portfolio ministers
- constructive and cooperative relationships within the department and with other agencies and governments
- career and development opportunities for our staff, and
- a rewarding and caring work environment.
Our role: Our primary role is to provide support to the Prime Minister, the Cabinet Secretary and the Cabinet, and to achieve a coordinated and innovative approach to the development and implementation of government policies.
Our outcome and outputs
Our planned outcome is ‘sound and well coordinated government policies, programs and decision making processes’.
During 2007–08 we contributed to the achievement of this outcome through four output groups.
Output Group 1: Economic and Industry Policy
Provide policy advice on economic, industry, infrastructure, environment, resources and regional policy issues, forecasts of Australia’s economic performance, coordination of budget processes and effective management of COAG’s work program.
Output Group 2: Social Policy
Provide policy advice on social policy issues, including income support, Indigenous policy, health and aged care, veterans’ affairs, housing, disabilities, employment, education and training, immigration and citizenship, families, women, youth, community services and coordination of family impact statements.
Output Group 3: International and National Security Policy
Provide policy advice on international issues, including trade, aid and treaty issues, and on national security issues, including defence policy and operations, intelligence, non-proliferation, counter-terrorism, border protection, chemical, biological, radiological and nuclear security, emergency management and support for the National Counter-Terrorism Committee, and the delivery of organisational and logistical arrangements for the 2007 APEC meetings.
Output Group 4: Support Services for Government Operations
Provide policy advice on parliamentary, machinery of government, legal and cultural issues, and a range of support services, including:
- providing secretariat services to the Cabinet, its committees and the Executive Council
- monitoring the implementation of Cabinet decisions
- developing and coordinating the government’s legislation program
- coordinating and promoting awards and national symbols
- providing support to the official establishments and former Governors-General, and
- administering State occasions and the official visits program.
As a result of the change of government, the following changes to the department’s output structure took place during the year:
- an Office of Work and Family was established in Output Group 2
- a Social Inclusion Unit was established in Output Group 2
- a Community Cabinet Secretariat was established in Output Group 4
- a Privacy and FOI Policy Branch was established in Output Group 4
- an Australia 2020 Summit Secretariat was established, and
- the Government Communications Unit was abolished in Output Group 4 and AUSPIC was transferred to the Department of Finance and Deregulation.
Figure 2.2: Our outcome and output framework
Outcome: Sound and well coordinated government policies, programs and decision making processes
- Output Group 1
Economic and Industry Policy- Output 1.1
Economic and Industry Policy
- Output 1.1
- Output Group 2
Social Policy- Output 2.1
Social Policy - Output 2.2
Office of Work and Family
- Output 2.1
- Output Group 3
International and National Security Policy- Output 3.1
International Policy - Output 3.2
National Security Policy - Output 3.3
APEC Taskforce
- Output 3.1
- Output Group 4
Support Services for Government Operations- Output 4.1
Cabinet Support - Output 4.2
Machinery of Government - Output 4.3
Government Communications Unit (abolished 3 December 2007) - Output 4.4
Support to Official Establishments - Output 4.5
Support for Ministerial Offices - Output 4.6
Ceremonial and Hospitality
- Output 4.1
Figure 2.3: Our organisation chart at 30 June 2008

Text equivalent for Figure 2.3
Figure 2.4: Staff distribution at 30 June 2008
Division |
Number |
|---|---|
| Cabinet Division | 43 |
| Economic Division | 26 |
| Executive | 12 |
| Government Division | 54 |
| Industry, Infrastructure & Environment Division | 40 |
| International Division | 34 |
| Office of National Security | 47 |
| Office of Work and Family | 15 |
| People, Resources & Communications Division | 82 |
| Social Policy Division | 81 |
| Graduates | 19 |
| 2020 Summit | 2 |
| Support Services 1 | 9 |
| TOTAL 2 | 464 |
- Support Services comprises five staff members employed for the support of former Governors-General and four departmental liaison staff in ministerial offices. The staff employed for the support of former Governors-General are paid from administered funds. All nine staff members are employed under the Public Service Act 1999.
- This excludes the domestic staff employed at The Lodge and Kirribilli House— they are employed under the Members of Parliament (Staff) Act 1984.
Our Executive group

The department’s Executive, standing from left:
Mr Paul Tilley,
Mr Duncan Lewis AO DSC CSC,
Mr Terry Moran AO,
seated from left:
Mr Mike Mrdak
and Ms Serena Wilson.
Mr Terry Moran AO (Secretary): Mr Terry Moran was appointed to the position of Secretary, Department of the Prime Minister and Cabinet, in February 2008 and commenced on 3 March 2008. As Secretary, Mr Moran is responsible for providing the overall leadership of the department and shaping its future. He provides strategic direction, determines priorities and appropriate resource allocations, delivers organisational performance and directs high-priority initiatives. In consultation with the deputy secretaries, the Secretary is also responsible for corporate governance.
Before he became Secretary, Mr Moran had a varied career as a public servant, working with successive Australian federal and state governments, with roles in public policy and public sector management. In May 1993, he was appointed as the first Chief Executive Officer of the Australian National Training Authority. In August 1998, he was appointed Director-General of Education Queensland. From July 2000 to February 2008, Mr Moran served as Secretary of the Victorian Department of Premier and Cabinet.
Mr Duncan Lewis AO DSC CSC (Deputy Secretary): Mr Lewis carries responsibility for coordinating policy development and advice to the Prime Minister on national security, defence and intelligence, domestic security and international relations.
He is the co-chair of the National Counter-Terrorism Committee, Chair of the Strategic Maritime Management Committee, Chair of the Strategic Policy Coordination Group, Chair of the Australian Government Counter-Terrorism Policy Committee, Member of the National Australia Day Council and an ex officio Member of the Council of the Order of Australia.
Mr Lewis joined the department as head of the National Security Division in January 2004, after 30 years with the Australian Army. He has been appointed an Officer of the Order of Australia in recognition of his distinguished service in command of the Special Forces. He was appointed Deputy Secretary in 2005.
Mr Mike Mrdak (Deputy Secretary): Mr Mrdak was appointed as Deputy Secretary on 26 March 2008. He is responsible for government, governance, the cabinet secretariat, the 2020 Summit secretariat and corporate functions in the department. He is chair of the department’s Audit, Security and Consultative Committees.
Mr Mrdak was Deputy Secretary of the Department of Infrastructure, Transport, Regional Services and Local Government from 2004–08.
Mr Paul Tilley (Acting Deputy Secretary): Mr Tilley was acting Deputy Secretary from 16 May 2008, overseeing policy advice to the Prime Minister and the Cabinet Secretary from the Economic Division and the Industry, Infrastructure and Environment Division. This included the work of the COAG branch, which plays an overall coordination and secretariat support role to COAG.
Mr Tilley has been head of the Economic Division since 2004.
Ms Serena Wilson (Acting Deputy Secretary): Ms Wilson has been acting Deputy Secretary from 19 May 2008. She is responsible for the Office of Work and Family, the Social Policy Division and COAG Skills Recognition. Ms Wilson is Chair of the COAG Working Group on Influenza Pandemic Prevention and Preparedness and the COAG Skills Recognition Taskforce.
Ms Wilson has been head of Social Policy Division since 2005.
C. The way forward
We will be implementing a new streamlined structure from 1 July 2008. The new structure will comprise four groups:
- Domestic Policy Groupwillbring together our economic, productivity and social policy agendas with the aim of improving coherence in domestic policy development and increasing opportunities for cross-cutting policy development. It will be supported by high-level executive coordinators who will work across the group on strategic projects and other tasks, especially where they cut across traditional divisional boundaries.
- National Security and International Policy Group will have an additional dedicated International Strategic Policy Unit and will recognise the synergies between national security and international policy development.
- Governance Group will enhance our organisational focus on governance. The focus of this group is on boosting governance and corporate support as well as the department’s leadership role in the Australian Public Service—that is, APS-wide governance. The group also provides support to parliament, ministers and their offices.
- Strategic Policy and Implementation Group will give a focus to our strategic policy and ensure forward-looking policy is prioritised in the face of the day-to-day demands of government.
Figure 2.5: Our organisational chart at 1 July 2008
Text equivalent for Figure 2.5
D. Our Performance
Each output group will provide performance information in the following chapters. However, there are certain indicators against which the department’s performance is measured across all output groups. These are:
- ministerial correspondence and briefings
- parliamentary questions on notice
- requests made under the Freedom of Information Act 1982, and
- resourcing.
Ministerial correspondence
Performance Information
| Quantity | On the basis of recent experience, in 2007–08 the department would expect to have to:
|
| Timeliness | During 2007–08, the department aimed to meet the following deadlines:
|
During the period 1 July 2007 to 30 June 2008, we processed approximately 223,000 items of correspondence addressed to the Prime Minister —an average of more than 890 per working day.
More than 95 per cent of correspondence was processed on time, compared to 94 per cent in 2006–07.
The most frequent topics arising in this correspondence included climate change and global warming, pensions for the aged and disabled along with carers bonuses, live sheep export and mulesing, dealings with Centrelink, same sex unions, Millennium Development Goals and poverty, fuel prices and the Northern Territory emergency response intervention.
Over the year, there was a marked decrease in the volume of briefings (minutes) prepared through the Ministerial Correspondence Unit for the Prime Minister, the Cabinet Secretary, the Parliamentary Secretary to the Prime Minister and the Office of the Prime Minister (2,270 minutes compared with 7,536 in 2006–07). This reduction can be attributed, in part, to the effects of an extended election/caretaker period and the change in government.
In addition, we coordinated the preparation of 474 messages to community groups and other organisations from the Prime Minister.
The volume of ministerial correspondence received in the past 10 years is shown below.
Figure 2.6: Items of ministerial correspondence processed

Text equivalent for Figure 2.6
Parliamentary questions on notice
| Quantity | On the basis of recent experience, in 2007–08 the department would expect to:
|
| Timeliness | The department aims to meet the specific deadlines as follows:
|
There were 78 parliamentary questions on notice on hand at the start of the financial year, and a further 58 questions were addressed to the Prime Minister during the year. Of these, 33 (13 pre-election and 20 post-election) were from the House of Representatives and 25 (six pre-election and 19 post-election) were from the Senate.
Responses to 33 questions were lodged in this period, 20 (15 pre-election and five post-election) from the House of Representatives and 13 (three pre-election and 10 post-election) from the Senate. Ten questions were transferred to other ministers, six from the House of Representatives and four from the Senate.
For questions lodged in this period (irrespective of the financial year in which the questions were asked), the average response time was 161 days (207 days pre-election and 26 post-election) for House of Representatives questions and 70 days (115 days pre-election and 55 post-election) for Senate questions. Fifty unanswered questions from the House of Representatives lapsed on dissolution of the House, while 25 unanswered questions from the Senate lapsed before the start of the new Parliament. There were 18 questions on hand at 30 June 2008.
Figure 2.7: Parliamentary questions—analysis of performance over time
| 2003–04 | 2004–05 | 2005–06 | 2006–07 | 2007–08 | |
|---|---|---|---|---|---|
| QUESTIONS ON NOTICE PARLIAMENTARY QUESTIONS HANDLED |
|||||
| Questions on hand at 1 July | 29 | 51 | 127 | 124 | 78 |
| New questions received | 93 | 207 | 185 | 149 | 58 |
| Questions transferred to other ministers | 23 | 11 | 34 | 21 | 10 |
| Responses lodged | 45 | 65 | 151 | 174 | 33 |
| Lapsed | 75a | ||||
| AVERAGE DAYS TAKEN TO RESPOND | |||||
| House of Representatives questions | 104 | 89 | 155b | 182b | 161b |
| Senate questions | 83 | 97 | 159b | 152b | 70b |
- There were 75 questions that lapsed due to the November 2007 election.
- Response times shown for 2007–08, 2006–07 and 2005–06 reflect the average number of days between the questions being asked and answered, irrespective of the financial year in which the questions were asked. Previous years’ figures reflect the average time taken to lodge responses to questions asked in that financial year.
Freedom of information requests
| Quantity | On the basis of recent experience, in 2007–08 the department would expect to have to:
|
| Timeliness | The department aimed to meet specific deadlines as follows:
|
Performance
We were responsible for managing 81 new requests under the FOI Act during 2007–08, in addition to the 33 FOI requests already on hand at 1 July 2007. During the year, 42 requests were resolved, 40 requests were withdrawn, and seven requests were transferred in full to other agencies. We had 25 requests on hand at 30 June 2008.
We received two applications for internal review during the reporting period, both of which were finalised. We also finalised a further internal review application on hand at 1 July 2007. There were no outstanding internal review requests at 30 June 2008.
During the reporting period, the department was the respondent in two applications for review of FOI decisions to the Administrative Appeals Tribunal (AAT), both of which were finalised. In both matters, the AAT decided (with the consent of the parties) that the decisions under review be set aside and that the department grant access to further documents. The AAT handed down a decision in another FOI matter, commenced prior to the reporting period, in respect of which the department’s Secretary was respondent. In that matter, the AAT affirmed the decision under review. At 30 June 2008, there were no current AAT proceedings against the department in respect of FOI decisions.
Figure 2.8: Freedom of information requests—analysis of performance over time
| 2003–04 | 2004–05 | 2005–06 | 2006–07 | 2007–08 | |
|---|---|---|---|---|---|
| FOI REQUESTS HANDLED | |||||
| Requests on hand at 1 July | 12 | 24 | 19 | 11 | 33 |
| New requests received | 66 | 34 | 60 | 65 | 81 |
| Requests withdrawn | 8 | 13 | 35 | 13 | 40 |
| Requests transferred to other agencies | 9 | 1 | 5 | 6 | 7 |
| Requests resolved | 37 | 25 | 30 | 24 | 42 |
| TIMELINESS OF RESPONSES1 | |||||
| Requests dealt with in line with FOI Act deadlines |
30%-60%2 | 32% | 30% | 28% | 29% |
- The statistics reported for the years 2003–04 to 2005–06 differ from those reported in our 2005–06 annual report, due to errors in the original calculations. The statistics reported in this table match those in our 2006–07 annual report, which included a similar note to this one.
- Subsection 15(6) of the FOI Act provides that the 30-day time period for notifying a decision on a request may be extended to 60 days if consultation with a state government, an individual or a business organisation is appropriate under sections 26A, 27 or 27A of the Act. The number of decisions where the period for notifying a decision was extended to 60 days in accordance with the FOI Act are not readily available for 2003–2004. Accordingly, for 2003–2004, timeliness is within a range where the lower figure would apply if all decisions notified after 30 days did not require consultation and the higher figure would apply if all decisions notified within 60 days had required consultation.
Resourcing
The total resourcing for departmental outputs in 2007–08 was $161.1 million. This comprised $149.1 million from government and $12.0 million from other sources (that is, the sale of goods and services, special accounts and miscellaneous revenue). More detailed information is provided in chapter 8, ‘Our finances’.
External participation
The department plays a significant central policy coordination role. Although we do not have any standing arrangements for outside participation in policy formulation or administration,
in undertaking our role we commonly draw on perspectives from a wide range of stakeholders to discuss emerging issues as well as those currently under consideration by government. These stakeholders come from diverse backgrounds, including:
- financial services, retail, mining, energy, manufacturing and other private sector groups
- professional and other interest groups
- consumer representatives, and
- Indigenous community leaders.
Following the Australia 2020 Summit on 19–20 April 2008, we maintain the Australia 2020 website to enable the public to lodge submissions on 10 key areas of public policy.
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